A group of private investors and the government of Qatar has just signed a $1.7-billion general contract for an 8-km-long retail development curving around the south of the capital, Doha. Essen, Germany-based Hochtief Construction GmbH. plans to complete the roughly 900,000-sq-meter Barwa Commercial Avenue project, including fit-out and electrical and mechanical equipment, in just over three years. The turnkey contractor began excavating for the development, next to a major highway, early last year in a separate $60-million contract with Barwa Real Estate Co., which is 45% owned by the Emirate of Qatar. Photo:Hochtief
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.