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| DUBAI*
– PROSPECT & CHALLENGES
BACKGROUND Touch of Innovation and state-of-art technology without exorbitant costs – with that tagline the company was set up and incorporated in the year 2000 albeit for the civil and structure disciplines. Its vision is to be a world class consultancy practice and its mission was to gain local recognition within a few years and thereafter venture overseas. Our eventual local track record speaks for itself. We have earned a reputation for being an innovative and reliable consultant in bridge design and construction. PJSI has designed a number of award-winning bridges for Malaysia’s new administrative capital, Putrajaya. These range from arched to advanced cable stay and arch hybrid structures with unique load-bearing and seismic capabilities. Our buildings and structures are not only visually aesthetic (striking) but also highly reliable (functional) and cost-effective (economical) in maintenance without any compromise in quality.
When we got started? In the year 2004, when the construction section was still buoyant, PJSI makes it first approach overseas on demand rather than on own initiative. A Malaysian contracting entity for whom PJSI has satisfactorily serviced locally over the years required construction engineering services for their maiden contract in Dubai. We were then flabbergasted with the opportunities aplenty awaiting bona fide consultants there.
Why we got started? Taking cognizance of the up and down economic cycle in Malaysia, PJSI’s board of directors was convinced to secure Dubai and perhaps the United Arab Emirates as an alternative source of income. It augers well with our vision to practice world wide and Dubai is well suited to be our inaugural overseas venture in terms of geographical, climatic and statutory and even time zone considerations.
How we got started? Three main options of operation were available for PJSI to practice in Dubai namely as a local branch of an international consultancy practice, a consultancy set up in a free zone area or as a locally registered professional consultant in Dubai. The easiest was to set up a consultancy in a free zone like Jebel Ali Free Zone but quite restrictive in terms of service region; your projects have to be within this free zone itself. PJSI in terms of resources size and financial capacities cannot afford to be competitive as the likes of major British and American professional consultants already practicing in Dubai. In addition, massive paper works are required which will delay the setting up of the consultancy practice.
For example the requirements for setting up PJSI Consultants branch office in Dubai, UAE would be:
* Endorsed by Notary Public, Foreign Affairs Ministry (Wisma Putra) and UAE Embassy
ARCHITECTURAL & ENGINEERING INNOVATIONS BUREAU (AEIB) By virtue of being offered the first consultancy project in Dubai in January 2005 after vigorous promotion of our services, PJSI has not much alternative but to set up a locally registered professional consultant in Dubai. By law, the consultancy practice has to have local emirate partners taking equity of not less than 51%. We were fortunate to fine a local emirate architect as a partner and hence ARCHITECTURAL & ENGINEERING INNOVATIONS BUREAU (AEIB) was established.
AEIB – what is that? We are proud to confirm that ARCHITECTURAL & ENGINEERING INNOVATIONS BUREAU, a locally registered professional consultant in Dubai, U.A.E. is considered a principal subsidiary of PJSI. The former has two permanent office maintained in Dubai, United Arab Emirates and adequately staff by engineers and other professionals, technicians and support staff. The wide array of resources in the parent Malaysian operation is readily available to the subsidiary company for projects like Jumeirah Lake Tower Project and the Palm Jumeirah Monorail Project as may be required. In this regard, PJSI’s Technical Director, Mr. Michael Yamout would also undertake the dual role as Joint Managing Partner in ARCHITECTURAL & ENGINEERING INNOVATIONS BUREAU ensuring the Dubai Offices will be fully supported by PJSI in their project implementation in Dubai or elsewhere in the Middle East. AEIB – PJSI Relationship In these projects, both AEIB and PJSI have agreed that AEIB shall be responsible for representation and communications with the Employer or Employer’s Representative. AEIB shall also be responsible for the overall co-ordination of the execution of the Consultancy Contract including all necessary endorsement for submission and securing authorities approval. Notwithstanding, AEIB and PJSI will be jointly and severally liable to the respective Employer for all obligations under the Consultancy Contract. PJSI shall second/deputize such number of its personnel to AEIB to jointly carry out the scope of work The seconded/deputized personnel of PJSI shall for all intent and purposes be treated as employees of AEIB for the entire duration of the Consultancy Contract. Should the AEIB be of the reasonable opinion that the presence of any of PJSI’s personnel are prejudicial to the Project, the AEIB may in its reasonable discretion require the removal of such personnel and PJSI shall promptly remove that person and procure a replacement. AEIB authorizes PJSI key personnel to act on its behalf to carry out all acts or things necessary or required for PJSI’s provision of the Technical Expertise and for the Design of the Project, and PJSI agrees to carry out the same. AEIB agrees and undertakes to ratify all acts or things carried out by PJSI personnel which is necessary or required for PJSI’s provision of the Technical Expertise and or the Design of the Project. PJSI shall allow for other technical support staff resident in PJSI’s Office in Kuala Lumpur and visiting short term technical staff as necessary to back up their resident project staff in Dubai. CHALLENGES IN DUBAI
The above ‘success‘ story is not without its pains.
What were our major problems? Resolving it through ‘trial & error’ Firstly, we were bogged down by limited financial resources. That actually depicts the way we organize our offshore operations which eventually was found not suitable and replace accordingly. In the end, we paid for the price of learning. An example was the concept of economical operations by carrying out all the design works in our KL office and the deliverables coordinated with the client and authorities by a handful of Dubai based resident staff. Clients and the authorities are just as demanding in Dubai hence the interfacing are frequent and spontaneous. This requires much more resident professional staff to be Dubai based and in particular, the architects whom the Client prefers to liaise with throughout the design phase. To provide an ideas on how costly it is to have a Malaysian based full time in Dubai, inclusive of accommodation and insurances, it is more than triple to cost to engage a professional here in Kuala Lumpur. In addition, most purchases on cash basis and rental is payable annual up front. The practice of advance payment for consultant to offset these initial costs is not prevalent in Dubai. Milestone payments according to the stages of design are the norm. Secondly, we did not and also cannot afford the time for studying the ‘new place’ including the culture (of how things are done) and all the statutory norms and requirement. This led to one of the fallacy of most Malaysian venture in Dubai in the early days that things can be done the Malaysian way – “Malaysia Boleh”. Again, mistakes have to be remedied at our cost. A typical case is that the Client prefers multi-discipline engineering consultant; the single discipline structure adopted by Malaysian consultants are then ill equipped to handle the whole design process on their own. Hence the need to form joint ventures and/or strategic alliance with other engineering discipline associate consultants or even engage sub-consultants. More often than not, the new associations and joint operations are not without its problem and this will effect the performance of the consultant. Liquidated and Ascertained damages stipulated in these contracts are high. The level and details of deliverables expected by the Client are of much higher standards than is generally considered acceptable in Malaysian. Strictly, the Client does not accept any compromise on the deliverables in terms of accuracy, details and time schedule. ADVICE TO MALAYSIAN COMPANIES
SUGGESTIONS TO THE GOVERNMENT
CONCLUSION – THE WAY FORWARD! Considering the prospects and challenges, problems and opportunities, we are of the opinion the world is out there for us to explore and exploit. There are no short cuts to success. It all boils down to determination, commitment, creativity and innovation. Moving forward is the way to go. There is no turning back. |