Contractors face myriad challenges

Charles Lever.
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MAJOR MEP CONTRACTORS
ALEC MEP
Based in Dubai and Abu Dhabi, ALEC is a high-level contractor with a US$1 billion a year turnover. It established its MEP business unit in 2006, focusing on turnkey MEP solutions, full maintenance and call-out FM, and energy-optimisation strategies, including energy audits on existing buildings.
www.alec.ae

ARABIAN CONSTRUCTION ENGINEERING COMPANY (ACEC)
Located in Doha, Qatar, ACEC is a conglomerate established in 1967. It is ISO 9001-2000 certified, offering a complete range of electrical and instrumentation systems and control and automation systems, representing well-known manufacturers in Europe and the Middle East.
www.acecgroup.com

DANWAY
Entered the field of generator hire and service in 1976, growing from 25 employees to 1 200 at present. Comprises MEP, contracting, industrial and retail systems and interiors and joinery.
www.danwayllc.com

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DRAKE & SCULL INTERNATIONAL PJSC
A regional market leader delivering world-class, integrated engineering through design-and-build MEP, civil contracting and water, power and infrastructure engineering. Established in Abu Dhabi in 1966 and in Dubai soon thereafter, it has since expanded as far as South East Asia.
www.drakescull.com

ETA M&E DIVISION
The MEP division of the ETA-ASCON Star Group. Offers design, supply and installation services in air-con, electrical, sanitary, plumbing, fire protection, ELV and BMS systems.
www.etamne.com

THERMO LLC
Established in 1976, focusing on multi-services co-ordination and a combined team approach, it offers conceptual design and development all the way through to procurement, installation, testing and operation and maintenance.
www.thermo.ae

VOLTAS
Founded in India in 1954, it offers engineering solutions in HVAC, refrigeration, electro-mechanical, water management and treatment, BMS and indoor air quality.
www.voltas.com

EMIRATES ELECTRICAL ENGINEERING (AL ROSTAMANI)
The Al Rostamani Group, founded in 1957, has a diversified portfolio including construction, building materials, infrastructure development, telecoms and recycling.
www.alrostamani.com

AL HABTOOR-SPECON
Established in Dubai in 1970, Al Habtoor Engineering is one of the largest construction companies in the Middle East, with 35 000 employees. Al Habtoor-Specon focuses on MEP.
www.habtoor.com

ROTARY-HUMM M&E SERVICES
The Rotary Group is a member of the Hastie Group, a leading MEP services provider in Australia, New Zealand and the Middle East.
www.hastiegroup.com.au

MAC AIR LLC
A multi-disciplinary company established in 1998, offering total building MEP and FM.
www.macairllc.com

SENSAIRE SERVICES LLC
Established in the UAE in 1983 as an air-con installation and maintenance contracting company, it has transformed into a true building services engineering contractor.
www.sensaire.ae

Cost drivers

• Cost penalties: There are some systems, such as ventilation, where some cost penalties are incurred due to the need to reduce fan speeds to save energy which, in turn, requires larger ducts and air-handling units. Sourcing of low-cost sheet metal for ductwork and simplified air-handling plant has helped to mitigate these costs.
• Commodity prices: The movement of cash into commodities in search of better returns and as a hedge against dollar depreciation has pushed up copper prices by more than 20%. Most MEP products have a high degree of value-add, so a big jump in commodity prices should not result in a corresponding rise in factory gate prices. However, steel and copper pipework and large-diameter cables contain a higher proportion of metal and will be affected more.
• Preliminaries and margins: Building services contractors have higher overall margins than main contractors, reflecting the costs of running design teams and the high level of co-ordination and supervision required on a typical project, and the need to invest in fixed assets such as prefabrication facilities and BIM libraries.