Youssef Tohmé Vice Chairman - Almabani General Contractors

Transcription

Youssef Tohmé Vice Chairman - Almabani General Contractors
Issue No. 8 . December 2014 - January 2015
Almabani Media Department Publication
Almabani General Contractors . All Rights Reserved ©2015
Almabani Headquarters
Almabani Building
Hail Street, Ruwais District
P.O.Box. No. 2781
Jeddah 21461
Kingdom of Saudi Arabia
Riyadh Metro Project Media Department Sites Tour
p. 5
The Almabani Journal
[email protected]
Tel:
(+966 12) 614 7800
ext: 2822 / 2706
Fax:
(+966 12) 651 9180
www.almabani.co
Almabani General Contractors
Editorial
A Fresh & New Look
p.2
BACS Riyadh
Metro Project
CWJV Partners Meeting
p.3
Procurement
Department
Q&A with Fernand Elias
p.19
Events
Youssef Tohmé Vice Chairman
p. 10
"The biggest challenge that lies ahead for us as Almabani, is how to sustain growth whilst being competitive"
2015 Business Plan
Meeting p.23
RMP: Prince Turki bin
Abdullah Site Visit
p.24
Almabani's Eighth Annual
Dinner Gathering
2014
p.25
Second PCI
Internationl Symposium
p.26
KAIA Camp Life
Almabani Cricket Team
KAR-West Project
Ongoing Activities & Challenges
p. 13
Procurement Department
Reducing Costs VS Maintaining Quality p. 18
p.27
In the News
p.27
A Fresh & New Look
Editorial
*Dedicated to our beloved Almabani family
Wrapping up 2014 with seven successful Journals, we are
gladly launching the first newly-shaped issue of 2015, which
we hope will be up to our readers’ expectations.
Next Issue
Preview
King Khalid
International Airport
Upgrade of Runways, Taxiways &
Airplane Parking in KKIA
In this occasion, I would like to express my gratitude and
appreciation to our top management for their generous
support on various levels throughout the year.
The Almabani Media Department witnessed in 2014 a
thorough reorganization and recruitment of new talents
making Almabani's Media Department a fully-geared entity
that can serve on different platforms: Corporate Journalism,
Advertising Artworks, Video Production, TV Commercials and
Internal Communication (Corporate Stationary, Presentations,
Reports).
We are growing in the shadow of Almabani’s growth, and
we are able to cover all Almabani's projects and activities,
implementing the necessary innovative documentation
processes, that enables us to keep up with each and every
project, conducting regular site visits and using TimeLaps technology where needed, as well as producing
documentaries and advertising movies.
Bahra
Where Innovation Meets Creativity
A Special Report
On behalf of the Almabani Media Department, I would like
to thank all project directors/managers, site engineers and
personnel who have facilitated our team's site visits and
helped us deliver better coverage for all Almabani's projects.
Sincerely,
Riyadh Metro Project
Arrival of the TBMs
Insight Coverage & Site Visit
John A. El Khoury
Media Department Manager
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The Almabani Journal . Issue No. 8 . December 2014 - January 2015
Riyadh Metro Project
BACS CWJV Partners Meeting
- Riyadh, KSA BACS Civil Works Joint Venture partners held a
pivotal meeting on January 13, 2015, in which
BACS Consortium Director Dr. Amjad Bangash
presented to the attendees a status update on
the project, whereby all the ongoing topics were
discussed and reviewed. This meeting, held 14
months after the award of the contract, gave the
opportunity to the project team to interact and
discuss all the challenging matters and objectives
of the project with the highest executives of each
company of the CWJV, including:
• HE Nehme Tohmé (Chairman), Youssef Tohmé
(Vice Chairman), Joseph Daher (CEO) and Alfred
Hakim (CFO) of Almabani.
• Bill Dudley (CEO) and Brendan Bechtel
(President and COO) of Bechtel.
• Samer Khoury (President) and Nazih Abdul
Kader (EVP Operations) of CCC.
Selected members of the project management
team were present as well.
BACS CWJV PARTNERS IN A GROUP PHOTO
BRENDAN BECHTEL WITH H.E. NEHME TOHMÉ
The Almabani Journal . Issue No. 8 . December 2014 - January 2015
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Riyadh Metro Project
BACS CWJV Partners Meeting
DAVID WELCH WITH ALMABANI'S CEO JOSEPH DAHER
ELIE CHRABIEH, BACS DEPUTY PROJECT DIRECTOR & ALMABANI'S VICE CHAIRMAN YOUSSEF TOHMÉ
DR. AMJAD BANGASH PRESENTING THE STATUS UPDATE REPORT
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The Almabani Journal . Issue No. 8 . December 2014 - January 2015
Riyadh Metro Project
Media Department Sites Tour
- Riyadh, KSA -
IN ORDER TO SHED THE LIGHT ON SOME OF
THE MAJOR ONGOING ACTIVITIES, ALMABANI
MEDIA DEPARTMENT CONDUCTED A TWO-DAY
TOUR OF SEVERAL RMP SITES ACCOMPANIED
BY THE BACS PR DEPARTMENT, WHERE WE
HAVE INTERVIEWED SITE PERSONNEL FROM
THE METRO PROJECT AND CAME BACK WITH
THIE FOLLOWING REPORT.
TUNNEL 2-1: NATM TUNNELING WORKS (ROADHEADER)
North Depot
The Line One North Depot has an area of
127,000m2. This storehouse consists of the
following five primary services buildings:
- Workshop building, which provides repair
service.
- Stabling building, where vehicles are parked
while awaiting their next turn of duty.
- Paint building
- Vehicle wash building, a facility used to clean
the vehicles
- Guardhouse, a building used to house
personnel and security equipment
Interviewee: Sayed Dafrawy, Site Manager
Construction work, as per the baseline plan, will
be launched in October 2015. Currently, activities
witnessed in this site are the following:
- Phase One Mobilization
- Fencing, to restrict movement across the site.
- Demolition of the existing buildings and
structures.
- Clearing and grabbing of the waste material
from site to the dumping area.
NORTH DEPOT: SITE CLEARING AND LEVELING
The Almabani Journal . Issue No. 8 . December 2014 - January 2015
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Riyadh Metro Project
Media Department Sites Tour
North Precast Segment Yard
Interviewee: Colin Watson, TBM Construction Manager
TBM SEGMENT FACTORY: OVERHEAD CRANE INSTALLATION
This is where the production of segments takes
place, before transferring them to the TBMs. In the
current phase, cladding the exterior of the building
is ongoing. Works on the storage area is ongoing
as well. In addition, two batching plants will supply
the works with concrete.
Until this writing, segments’ production is at early
stages (casting). Samples of fire segments were
casted: four out of six are ready to be tested for
ability, before being deployed inside the tunnels.
TBM SEGMENT FACTORY: INSPECTION OF MOLDS
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The Almabani Journal . Issue No. 8 . December 2014 - January 2015
Riyadh Metro Project
Media Department Sites Tour
NATM Tunnel
Interviewee: Mick Reilly, NATM Tunnel Project Manager
NATM TUNNEL 2-1 AND OLAYA ICONIC STATION: EXCAVATION WORKS, CRAWLER CRANE AND EXCAVATOR
Excavators and rockbreakers are working on
the alley excavation to take the current level of
the 77x80m excavated area from -5m down to
-15m, a total of 62,000m3.
The east tunnel is currently 120m long. During
our visit, workers were getting ready to start the
next excavation after spraying. For this purpose, a
number of equipment were mobilized: a tunneling
roadheader (Sandvik MT 360), concrete remixers,
dump trucks (for the muck away materials),
MEYCO Potenza (for concrete spraying), and the
small excavator which is specially designed for
mining tunnels.
NATM TUNNEL EAST SHAFT: GENERAL SITE WORKS & THE BOBCAT SKID-STEER LOADER
The Almabani Journal . Issue No. 8 . December 2014 - January 2015
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Riyadh Metro Project
Media Department Sites Tour
North Shaft
Interviewee: Joseph Maroun, Site Engineer
NORTH TBM LAUNCH SITE: DEWATERING WORKS & CRAWLER CRANES
The north shaft is the place from which two
TBMs will be launched: one will bore north, the
other will go south. This site witnessed many
accomplishments in a relatively small time. A
total of 155,000m3 was excavated, while the
100x16m shaft is at a depth of 15.5m.
One of the TBMs is expected to arrive by the end
of January 2015, whereby this will be our major
feature story in the coming issue of The Almabani
Journal's RMP exposure.
NORTH TBM LAUNCH SITE: GENERAL SITE WORK, CRAWLER CRANE, EXCAVATOR & DRILLING RIG
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The Almabani Journal . Issue No. 8 . December 2014 - January 2015
Riyadh Metro Project
Media Department Sites Tour
South Shaft
Interviewee: Engineer Holger Weinert
SOUTH TBM LAUNCH SITE: CRAWLER CRANE
Perimeter grating is ongoing in the South Shaft,
along with the excavation activity down to the first
prop level at -5m. This activity will continue to
reach a depth of 24m. However, a challenging
element faced in this site is the existing very high
groundwater. In this regard, a dewatering system
is expected to be implemented in order to remove
the groundwater from the construction site, using
dewatering pumps.
SOUTH TBM LAUNCH SHAFT: EXCAVATION WORKS
The Almabani Journal . Issue No. 8 . December 2014 - January 2015
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Guest of the Journal
Youssef Tohmé, Vice Chairman of Almabani
- Jeddah, KSA -
Interviewed by: John A. El Khoury
ALMABANI MEDIA DEPARTMENT HAD THE HONOR OF INTERVIEWING ALMABANI'S VICE
CHAIRMAN MR. YOUSSEF TOHMÉ IN HIS OFFICE AT THE ALMABANI HEADQUARTERS.
John El Khoury: At the beginning of this interview, please introduce yourself to the readers,
recalling your academic background as well as your early professional days…
Youssef Tohmé: I am the Vice Chairman of Almabani General Contractors.
I first joined Almabani in 1998, right after my graduation from City University in London where I did both
my undergraduate and postgraduate degree in Masters of Civil Engineering.
When I joined Almabani, I started my career in the estimation department. I left Almabani at the end of
2000 to diversify our business interests in other fields. In 2001, I established a company called Levant
Oil and I was its CEO, we specialized in the importation, storage and distribution of Gasoline, Gas Oil
and Bitumen products into Lebanon. The company was extremely successful and we quickly became
one of the leading importers of refined products into Lebanon with an annual turnover of 300 Million
Dollars a year.
In 2009, the company was sold at its peak to a group and re-joined Almabani to aid in the management
and development of the company. This decision was driven by several key factors, one the exit of
Levant Oil, two the beginning of a new business boom in the construction sector in Saudi Arabia and
three the continuity of our family business.
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The Almabani Journal . Issue No. 8 . December 2014 - January 2015
Guest of the Journal
Youssef Tohmé, Vice Chairman of Almabani
JK: How do you describe the moment when you first entered the Almabani Head Office as an
active member of the top management of this company?
YT: It is just the way one enters his home every day: A family atmosphere.
I consider this a rare quality that this company has considering its size.
JK: What can you tell us about the role of HE Mr. Nehme Tohmé, your father and a business
leader, in developing your career?
YT: In my opinion, a person cannot develop the career of another person. He can help and guide him
or her in a certain path, motivate and give words of wisdom. In the case of my father, it is what I have
learned from him over the years, by seeing him each day, staying by his side and listening to him. I
am motivated by his achievements and success and he has always been an idol, not only to me but
to others as well.
JK: How do you see Almabani now, in comparison with the early days of your involvement in its
operations?
YT: Almabani has grown and its growth is due to several factors. First of all, contracting company relies
on the economic growth of the country this plays an important role in the company’s own growth.
The second factor are the people in it. When you have motivated individuals, productivity becomes
inevitable.
Almabani has a mature management team and experienced team. When I say mature it implies that the
management team knows how to work together, calculate risk, and take collective decisions to benefit
the company from the opportunities at hand.
JK: In your speech at the 2014 Eighth Annual Dinner Gathering, you compared Almabani to
a rocket ship. How do you explain to the readers Almabani’s corporate culture that makes it
comparable to a rocket ship?
YT: I will try to explain it the following way: Almabani is a company that is growing at a fast pace, we
are recruiting the best of the best from all fields. Today, we have the best engineers, the best finance
experts, the best architects, designers, IT experts, media specialists etc. We have tried to recruit the best
professionals from around the world. Those professionals are the real asset of Almabani. I have said this
before and I will restate, it is not only about owning large amount of equipment and machinery, our real
asset are our people. This is our corporate culture. With each ones potential and with each ones energy
and enthusiasm this combined propels us like a rocket ship… The sky is the limit!
JK: A remarkable growth has been witnessed in the role of Almabani’s Estimation Department.
In brief, what is Almabani’s estimation strategy?
YT: When we talk about estimation, we talk about competitive engineered pricing. If you price too low,
you get the job and you might lose money and if you price high, you most likely won’t get awarded.
The key is to price right by being creative in your pricing and by having a pro-active approach. In order
to achieve this, we rely on vital data collected from past projects, creative thinking and modern value
engineering helps us land awards.
Almabani is considered nowadays a specialized company in certain fields: we specialize in airports
because we know how to price and execute them. We specialize in infrastructure projects because we
The Almabani Journal . Issue No. 8 . December 2014 - January 2015
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Guest of the Journal
Youssef Tohmé, Vice Chairman of Almabani
have already executed many complex projects successfully. This does not imply that we do not know
how to price and execute projects in others fields but nowadays to survive in this competitive market
you have to be the best at what you do.
JK: Talking about Almabani’s field of expertise and specialties, are there any plans to broaden
this field… to see Almabani executing tower blocks maybe?
YT: We have built high-rise buildings before. The last high-rise tower that we did was the Jeddah
Municipality building back in November 2006. However, high-rise buildings are not very common in
the Saudi market in comparison with other GCC countries such as the UAE and Qatar. Nevertheless,
when the opportunity comes, we will not hesitate. We do have the appetite.
JK: How do you describe 2014 in terms of achieving targets and goals set by the company’s top
management? And, in brief, what is Almabani’s 2015 business outlook?
YT: 2014 was successful year. We have achieved many of the targets that we had set up. These targets
were very challenging yet they were met. Maybe giving a business plan on a year-by-year basis is a little
bit short as we have witnessed in 2014, however, 2015 will also be, in my opinion, a good year for
Almabani. We still have a lot of projects in the pipeline, and we are hoping to be awarded several others.
JK: Is Almabani going to expand beyond the Saudi borders toward other MENA markets?
YT: We have executed several projects beyond the Saudi borders in the past. We worked in Lebanon,
Yemen, Oman and Qatar. We have been also worked in Egypt back in the 1980s. However, the Saudi
market is the largest market in the region. A small project in the Saudi Arabia is considerable to a large
project in neighboring countries.
JK: As we have read in various studies and peer-reviewed analyses, the Saudi market is seen
to reenergize in 2015. What is the biggest challenge facing Almabani today, and how do you
assess the competition in the Saudi construction scene?
YT: In my opinion, the biggest challenge that lies ahead for us is how to sustain growth whilst remaining
competitive. Competition is at its highest levels, and we do have a back-up plan should the business
strategy change. On the long-term we will eventually look at other markets to expand.
JK: Talking about megaprojects, what is your message to Almabani people executing the Riyadh
Metro Project?
YT: The Riyadh Metro Project is the largest infrastructure project ever seen in Saudi Arabia. The
message that I would like to convey to our team on this project is the following: The work you have
done so far is tremendous, and the work yet to be executed will be even greater, you are executing a
project that will be recorded as one of the greatest engineering achievements in the Kingdoms history
and you will be part of this.
JK: At the end of this interview, is there anything that you would like to add?
YT: I would like to thank everyone and I hope to see everyone face to face and get to meet all our new
Almabani members in 2015 on a personal level.
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The Almabani Journal . Issue No. 8 . December 2014 - January 2015
Development of the Western Part of
King Abdullah Road
- Riyadh, KSA, Site visit with Enginner Ayman Saeed -
DEVELOPMENT OF THE WESTERN PART OF KING
ABDULLAH ROAD, OR WHAT IS KNOWN AS KAR-WEST,
IS NOW CONSIDERED AMONG THE MOST IMPORTANT
UNDER-EXECUTION PROJECTS OF RIYADH, WHEREBY
IT SERVES SEVERAL PROMINENT LANDMARKS SUCH
AS KING SAUD UNIVERSITY.
ALMABANI TEAM IS WORKING HARD TO FINALIZE
PHASE ONE OF THE PART ‘B’ OF THE PROJECT ON
TIME. HARD EFFORTS ARE SHOWN TO FINISH THE
DECK SLAB WORKS, IN ORDER TO START ROAD
WORKS IN SEQUENCE.
The Almabani Journal . Issue No. 8 . December 2014 - January 2015
13
Development of the Western Part of
King Abdullah Road
EXCAVATION OF PART 'A' UNDERPASS
Among the major challenges that Almabani team
has faced subsequent to the hand over of the Part
‘A’ site, was the tough task of excavating a total of
300,000m3 rocky soil area where the underpass
will be constructed. Detour works, excavation and
retaining walls works have immediately started
in order to have a positive variance of what was
already planned.
In the meantime, our team is working on the
finalization of the Digital City detour in order to
have a sufficient working area to launch the rest
of the road works and the underpass excavation
SCAFFOLDING AND FORMWORK OF THE WEST SIDE OF BRIDGE 1, PART 'B'
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The Almabani Journal . Issue No. 8 . December 2014 - January 2015
Development of the Western Part of
King Abdullah Road
PREPARATION OF BEARING PADS AT KING KHALID U-TURN BRIDGE PIERS, PART 'B'
of Part ‘A’, before we proceed in executing Flyover
One and the western part of Flyover Two, under
Part ‘B’.
"Our priority now is to meet our target of delivering
an outstanding quality project, on time and under
budget, to prove once again that Almabani has a
permanent seat among the leading construction
companies of the region", concluded Eng. Sa'id.
PROJECT SUMMARY
DAYS SINCE START270
REMAINING DAYS792
TOTAL CUMULATIVE MAN-HOURS TILL DECEMBER
1,858,270 M-H
TOTAL CONCRETE QUANTITIES DURING DECEMBER
5000 M3
CONSTRUCTION WORKS EXECUTED28%
BACKFILLING AT KING KHALID U-TURN PIERS, PART 'B'
The Almabani Journal . Issue No. 8 . December 2014 - January 2015
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Procurement Department
Reducing Costs VS Maintaining Quality
- Jeddah, KSA THE PROCUREMENT DEPARTMENT OF ALMABANI IS A HIGHLY
ACTIVE DEPARTMENT THAT PLAYS AN ESSENTIAL ROLE IN
PROVIDING ALL THE REQUIREMENTS AND NEEDS OF THE
PROJECTS, INCLUDING EQUIPMENT, MATERIALS, MANPOWER
AND SERVICES.
JEDDAH-BASED PROCUREMENT DEPARTMENT
The Procurement Department is entrusted with
the responsibility of accomplishing the following
six objectives:
- To procure all the required services, materials,
equipment and construction needs in an ethical,
legal and systematic manner while ensuring that
quality and cost-effectiveness are achieved.
- To ensure that procurement transactions are
conducted in a manner that provides full and
open competition whenever practicable.
- To solicit the participation of all qualified and
responsible contractors and suppliers in the
procurement process.
- To assure equity for all parties involved in the
procurement process.
- To obtain the best value for the money spent.
- To eliminate the possibility of corruption or
unethical practices in the procurement process.
FACTS & FIGURES FROM THE PROCUREMENT DEPARTMENT
• NUMBER OF PURCHASE ORDERS ISSUED IN 2013: 1,100 (>300,000,000 SR)
• NUMBER OF PURCHASE ORDERS ISSUED IN 2014: 1,300 (>500,000,000 SR)
• NUMBER OF VENDORS REGISTERED IN THE PROCUREMENT DEPARTMENT DATABASE: 6,500
• ELEVEN PROJECTS CURRENTLY BEING HANDLED AND SUPPORTED BY THE PROCUREMENT DEPARTMENT:
KAIA 2, APRON 6, KFNB, KAU, BAHRA WORKSHOP, TABUK [2], KKIA, DHAHRAN, 7 AIRPORTS AND KHAMIS MUSHAIT
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The Almabani Journal . Issue No. 8 . December 2014 - January 2015
Procurement Department
Q&A with Fernand Elias, Logistics and Procurement Manager
- Jeddah, KSA -
Interviewed by: Nassim Arabi
IN ORDER TO DIG DEEPER INTO THE DAY-TO-DAY
ACTIVITIES OF THE PROCUREMENT DEPARTMENT
AND KNOW MORE ABOUT THE STRATEGIES
AND POLICIES, FERNAND ELIAS, LOGISTICS &
PROCUREMENT MANAGER PROVIDED US WITH
THE FOLLOWING ANSWERS
FERNAND ELIAS
Nassim Arabi: First, tell us a little about yourself, your academic background and professional
experiences, all the way to your current position as Almabani’s Procurement and Logistics
Manager.
Fernand Elias: My name is Fernand Elias. I graduated in 2005 with a Bachelor of Engineering in
computer and communication engineering. I joined Rotana TV as a telecom engineer right after my
graduation. However, and as a result of the July War, I decided to leave Lebanon. I had the opportunity
to join Almabani in August 2006, I remember that day very well: Beirut Airport was out of operation
because of the war, so I had to travel to Saudi Arabia through Syria.
When I first came here, I was handed the responsibility of the procurement department in the South
Central Jeddah Sewerage Project, where I had the chance to work with Mr. Elie Eid for three months. I
am still thankful for this guy because he is the one who introduced me to the Saudi market, prior to his
transfer to King Abdulaziz International Airport Project. Back to the sewerage project, I would also like
to pay tribute to Mr. Roy Yazigi, who was the project manager at that time, and from whom I learned
how to face the challenges and go beyond the daily usual routine by tackling new tasks that improves
the department.
My next mission was to handle the procurement department along with the equipment rental and
workshop of the Flood Control Measures Project in Jeddah. It was a high-pressure environment
whereby we had to complete a huge scope in only six months. At the end of this project I had the
chance to complete a training course and got the International Procurement Professional certificate,
issued by the International Academy of Project Management.
Finally, I joined KAIA team in 2012, where I was assigned in my current position as Logistics and
Procurement Manager in late 2013.
NA: When we talk about procurement, we think of purchasing goods at the lowest prices possible.
I am pretty sure that you have a broader explanation of your department’s role. Is it just about
purchasing?
FE: Actually procurement is much wider than purchasing. It is the whole process of acquisition of goods
or services, which is now concerned with the total cost of acquisition and not only the lowest possible
The Almabani Journal . Issue No. 8 . December 2014 - January 2015
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Procurement Department
Q&A with Fernand Elias, Logistics and Procurement Manager
purchase price. The total cost of acquisition also includes the cost of owning (financing), the cost of
operating (maintenance, labor, overheads, etc…) and sometimes the cost of disposing.
Procurement incorporates a more strategic approach to the acquisition of goods and services and
tends to be more system and process driven. It is a management tool that defines the purchasing
policies, objectives and the systematic coordination of all aspects of the procurement process including
planning, bidding, assuring proper quantity, adequate quality, negotiating prices and payment terms,
shipping , delivering, material storing, issuing and warehouse inventories.
The volume of procured materials and services can reach more than 60% from the value of a project.
Therefore, procurement can have a dramatic impact on an organization bottom line if not properly
handled. Moreover, inventories are crucial in procurement cycle. When you do not have the right
inventories, cutting lead times will be the result, risking the acceptable levels of quality and increasing
the prices and losing control over costs; this is known as panic purchasing.
Planning helps in forecasting all types of unknown activities in a project. Good planning can efficiently
accelerate the procurement cycle. It is important to mention here that many purchasers believe that the
cheapest option is always the best. However, experience tells us that the cheapest option often ends
up being the costliest. Experts say it is unwise to pay too much, but it is worse to pay too little.
When you pay too much you lose a little money and that is all. When you pay too little, you sometimes
lose everything, because the thing you bought was incapable of doing the thing it was bought to do.
The common law of business balance prohibits paying a little and getting a lot. It can’t be done. If you
deal with the lowest bidder, it is well to add something for the risk you run. If you do that, you will have
enough to pay for something better.
NA: What procurement strategies do you use in Almabani? And how to balance between desired
values and best prices?
FE: In Almabani’s Procurement Department, we do our utmost efforts to avoid panic purchasing. Our
strategy is shaped by the following: “to obtain materials of the right quality in the right quantity from the
right source, delivered to the right place at the right time”. We work with each concerned department
to define the long lead items in a project and define a purchase strategy accordingly.
There are many strategies that we usually adopt during the procurement process, including:
• Forecasting our need for components 6 to 12 months in advance.
• Defining the required quantities of every major item in the project, the required delivery time, and
thus the purchase date.
• Involving as much suppliers as possible in all inquiries. This helps in generating a competition in
prices and quality.
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The Almabani Journal . Issue No. 8 . December 2014 - January 2015
Procurement Department
Q&A with Fernand Elias, Logistics and Procurement Manager
• Maintaining strong relationships with suppliers pays off in shortage crises, as suppliers who enjoy
dealing with our company will often “go the extra mile” to help us secure critical components and
deliveries.
• In a supply crisis, we usually also examine our purchasing history and, based on that history and our
valuable suppliers database, an earlier scheduled purchase orders can be released for certain item.
• Releasing early purchase orders and contracts along with delivery schedules for the major quantities
of key materials. This will definitely help suppliers to set up their production plan (add more manpower,
increase productivity by increasing working shifts, buying more machines…) to meet delivery schedules
on time.
• Allocating many suppliers and avoid dealing with intermediate parties if we can directly deal with the
main source and get better commercial offers.
• Increasing the purchase volume of required materials from different projects. This ameliorates our
position during the negotiations and guarantees better prices and services from the suppliers.
Our target is to get the best cost of acquisition with the best quality and price. However, we never
sacrifice the quality to attain the lowest price. We ensure that all the products stated in the scope of
supply will be in accordance with the client’s requirements and as per applicable international standards
and project specifications. We exert all efforts to complete the project below its budget cost.
NA: Is procurement centralized in Almabani?
FE: There are few items which are centrally procured in Almabani, such as the bitumen that is considered
a crucial material in all our projects. Therefore, we are responsible of all bitumen orders for all the
projects. The procurement department is fully handling Almabani’s Jeddah projects. In addition, our
department supports several other projects, especially when it comes to the major or bulk items. Those
projects are: Khamis Mushait project, KKIA-AFU project in Riyadh, Tabuk projects, Seven Airports
project and Dhahran project.
NA: Apart from your daily job, when does the procurement department face hard times? What is
the hardest task you tackle in your profession?
FE: We face daily challenges in our department due to the nature of construction that is a fast paced, highpressure environment. But every time we face a challenge and we solve it out, we end up improving our
skills and sharpening our knowledge. I believe challenges elevate the motivation and without challenges we
will remain stuck in the orbit of the daily usual routine.
To complete a project below its budget cost remains the primary challenge, especially that some
The Almabani Journal . Issue No. 8 . December 2014 - January 2015
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Procurement Department
Q&A with Fernand Elias, Logistics and Procurement Manager
projects have been priced few years prior to the awarding letter, while the market prices are usually
increasing.
On my personal level, there were many challenges that I have faced since I joined Almabani back in
2006. To be more accurate, each project had its own challenges. The first challenge was in the sewerage
project in Jeddah, which was a joint venture of Almabani, Guris and Dallah. Each company had its own
system and mentality. I had to work hard to establish and maintain a procurement system approved
by the project management. Another challenge to mention is the logistics work, since the project had
more than 15 different locations spread over all the southern part of Jeddah. Thus, deliveries had to
be handed to all sites on a daily basis, and we were only two persons in the procurement department.
As for the Flood Control Measures Project, our major challenge was time. It was a fast-track project with
no room for delays, especially in the procurement activities that were essential in delivering the project
on time. For instance, I remember that we had to pour in several occasions more than 3,000m3 per
day to complete the project schedule on time.
Moving to KAIA, our major challenge here lies in the huge quantities: the aggregate quantity in this
project is more than 3.5 million m3, with more than 75,000t of steel rebar. In this regard, I would like to
mention that our CEO, Mr. Joseph Daher, has set a financial saving target for all the remaining materials
in this project, and I hope that I will succeed in fulfilling this task with the support of all the procurement
department team and other heads of departments.
NA: What does your department need to cope with the fast pace of growth witnessed in Almabani?
FE: Almabani is considered now among the leading companies in the Saudi market and our top
management is seeking to gain a bigger share every year. I noticed that the management has started
to invest in its people by supporting and offering professional trainings at all levels, especially in
engineering and design departments. I think this policy should spread to support training courses for all
the other departments, to be able to keep tracking with the best practices in the construction industry,
on all levels (procurement, cost control, quality, etc...).
Moreover, I believe that it is the time to get a reliable software or an ERP system that links estimation,
cost control, procurement and accounting departments. Currently, each project has its own system.
This is why we need a unified system in all Almabani’s projects. It might be expensive but this what is
being used by all the international and professional companies and I believe it should be implemented
as soon as possible.
PROCUREMENT DEPARTMENT - ALMABANI KAIA SITE OFFICE
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The Almabani Journal . Issue No. 8 . December 2014 - January 2015
Events
2015 Business Plan Meeting
- Jeddah, KSA -
ALMABANI TOP MANAGEMENT
HELD ITS ANNUAL BUSINESS PLAN
MEETING ON JANUARY 6, 2015 AT
THE ALMABANI HEAD OFFICE IN
JEDDAH, SAUDI ARABIA.
H.E. MR. NEHME TOHMÉ & ALMABANI'S CEO MR. JOSEPH DAHER
The meeting was attended by Almabani’s senior
executives: H.E. Chairman Nehme Tohmé, Vice
Chairman Youssef Tohmé, CEO Joseph Daher,
Senior EVP-Contracting Pierre Mourani, EVP Jihad
Mikati, EVP-Operations Jean Akari, EVP-Projects
Control Sami Sindaha and CFO Alfred Hakim.
During this meeting, Almabani’s CEO delivered an
H.E. MR. NEHME TOHMÉ
YOUSSEF TOHMÉ
Chairman
Vice Chairman
JEAN AKARI
EVP-Operations
PIERRE MOURANI
Senior
EVP-Contracting
The Almabani Journal . Issue No. 8 . December 2014 - January 2015
assessment report of the 2014 accomplishments,
in addition to the extensive discussion of the 2015
Business Plan, setting new goals and drawing
new growth and expansion strategies for the
near future, as well as reviewing the Almabani’s
Covenants.(See back cover)
JOSEPH DAHER
Cheif Executive Officer
JIHAD MIKATI
EVP
ALFRED HAKIM
CFO
SAMI SINDAHA
EVP-Projects Control
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Events: Riyadh Metro Project
Prince Turki bin Abdullah Site Visit
- Riyadh, KSA, Arab News THE MULTIBILLION-RIYAL METRO PROJECT
IS 10 PERCENT AHEAD OF SCHEDULE, SAID
RIYADH GOV. PRINCE TURKI BIN ABDULLAH
BIN ABDUL AZIZ HERE AS HE INSPECTED
PROGRESS IN THE CAPITAL CITY.
WORK PROGRESS PRESENTATION INSIDE THE TUNNEL AT -25M
Prince Turki, who is also president of the High
Commission for the Development of Riyadh
(HCDR), and King Abdulaziz Public Transport
supervisory committee, held the 11th meeting of
the HCDR in a tunnel.
The tunnel is below what would become the
Olaya station site, at a depth of 25 meters. Project
officials briefed Prince Turki on the drilling that has
already extended 218 meters east and west.
He had a close look at various aspects of the
work including geological tests, and the use of
sensors to monitor the thickness of the soil on the
surface above the tunnel.
Officials also outlined the ventilation, lighting
system and equipment to monitor the level of
oxygen and gases inside the tunnel, to ensure that
workers are safe underground.
Talking to the media, Prince Turki said: “Today we
are proud of the achievements I have just seen,
which are a tribute to the leadership of Custodian
of the Two Holy Mosques King Abdullah.”
He added: “The work is great and unprecedented
in the world, we should bear this in mind. We are
determined to complete the project as soon as
possible in accordance with the directives of King
Abdullah.”
One of the world’s largest metro projects, this
automatic driverless network will be over 170 km
and have 87 stations on six lines, and is scheduled
for completion in 2018.
PRINCE TURKI AT THE BASE OF THE SHAFT
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The Almabani Journal . Issue No. 8 . December 2014 - January 2015
Events
Almabani Eighth Annual Dinner Gathering 2014
- Jeddah, KSA FROM ALL OVER SAUDI ARABIA, ALONG
WITH FELLOW COLLEAGUES WHO
ARRIVED FROM LEBANON, ALMABANI
HELD ITS EIGHTH ANNUAL DINNER
GATHERING IN LEYLATY HALL, JEDDAH,
ON TUESDAY, DECEMBER 9, 2014.
ANNUAL DINNER GATHERING SOUVENIR PHOTO
This year’s ceremony featured the unveiling of
Almabani’s new slogan, “In Pursuit of Success”,
which was launched by Almabani’s Chief
Executive Officer, Mr. Joseph Daher, at the end
of his speech.
The agenda included three speeches delivered
consecutively by the Vice Chairman Mr. Youssef
Tohmé, the President of the Board of Advisors Mr.
Badr Harb Alzuhair and the Chief Executive Officer
Mr. Joseph Daher. The speeches were followed
by two films: “In Pursuit of Success”, a television
advertisement that describes the long exciting
journey of success that Almabani is bound to,
and “Beating a Deadline”, a short documentary
film that highlights the work progress in the very
challenging Makkah-Salahuddin Tunnel Project in
Riyadh.
Almabani is inaugurating its 43rd year in the
general contracting field. Through the faith and
confidence in the competence of each and every
single individual in this company, Almabani’s
exponential growth is paving the way to expand
into new fields of accomplishments and embark
on endless endeavors… “In Pursuit of Success”!
LEYLATY BALLROOM
The Almabani Journal . Issue No. 8 . December 2014 - January 2015
25
Events
Second PCI International Symposium
- Dubai, UAE -
BUILDING ON THE HUGE SUCCESS OF THE
FIRST SYMPOSIUM, ALMABANI SIGNED ON
AS A SILVER SPONSOR FOR THE SECOND PCI
INTERNATIONAL SYMPOSIUM ON PRECAST
CONCRETE, HOSTED BY PCI AND E.CONSTRUCT
BETWEEN JANUARY 19 AND JANUARY 22, 2015,
AT THE DUBAI CONVENTION CENTER.
Almabani was represented by Lutfi Ahmed,
Head of Design Department, who attended the
symposium and the exciting training seminars
that featured world renowned speakers coming
from academic and professional backgrounds, to
encourage the sharing of best practices in the use
of precast and prestressed concrete.
AT THE ALMABANI BOOTH
LUTFI AHMED, HEAD OF THE ALMABANI DESIGN DEPARTMENT
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The Almabani Journal . Issue No. 8 . December 2014 - January 2015
KAIA Camp Life
Almabani Cricket Team
- Jeddah, KSA -
AMONG ITS EXTRACURRICULAR ACTIVITIES, ALMABANI KAIA CAMP
FEATURED THE ESTABLISHMENT OF A CRICKET TEAM THAT HAS BEEN
RECENTLY PARTICIPATING IN THREE LOCAL TOURNAMENTS.
Back in January 2014, 15 Almabani employees
coming from the Indian subcontinent grouped
themselves under the supervision and captaincy
of Salim Pookunju, and officially declared the
establishment of Almabani cricket team.
Using Quraysh Ground as a practicing field, the
Almabani cricket team has participated so far in
two local tournaments: Jeddah Cricket Association
Cup (November 2014) and most recently 2014
King Abdulaziz Medical City (KAMC) Cup, in which
the Almabani team has successfully defeated the
host team in the final, and won the trophy.
As a result of its great performance, the Almabani
cricket team was invited to participate in the JCL
cricket tournament that will be held at the JCL
ground in February, with 32 teams competing.
…From the Almabani Media Department to our
fellows in the cricket team… ALL THE BEST!
In the News
Riyadh Metro Project to Hire Saudi Women
- Riyadh, KSA -
Riyadh Gov. Prince Turki bin Abdullah bin Abdul Aziz
has announced that plans are underway to hire Saudi
women to work on the metro in the capital city.
Opening the Producers Exhibition and Conference at
the Riyadh International Convention Center, Prince
Turki also urged the Riyadh Chamber of Commerce
and Industry (RCCI) to support efforts to create jobs
for women, reports Arab News.
"Having home services offered by Saudi women
is better and safer than relying on migrant workers
or men for these services," he commented, and
described Saudi women as the compassionate half of
the nation.
Related link: http://www.arabiansupplychain.com/article-10761riyadh-metro-project-to-hire-saudi-women/
In the News
First Phase of New Saudi Airport Nearly Ready
- Jeddah, KSA -
The first phase of the construction of the new King
Abdulaziz International Airport will be completed soon
at a cost of SR27 billion.
Faisal Bin Hamad Al-Suqair, deputy chairman of the
General Authority for Civil Aviation (GACA), told Okaz/
Saudi Gazette that when completed the airport will
The Almabani Journal . Issue No. 8 . December 2014 - January 2015
have 46 gates and serve about 30 million passengers
annually.
He said the new airport would have a capacity to
handle as many as 92 aircraft at a time.
Related link: http://www.saudigazette.com.sa/index.
cfm?method=home.regcon&contentid=20150123231369
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