
Projects SA (Construction) is beginning to reap the rewards of a five-year growth plan it launched three years ago, according to Michael McAuley, commercial manager of the Bahrain-based building and civil engineering contracting firm.
The company has been restructured and its workforce doubled. It has taken on board a number of professionals including planning engineers and quantity surveyors. With the restructuring, the company has adopted a 'homogenised approach" to doing business with the various entities within the group working together, thus avoiding duplication of efforts, he says.
Set up in 1976, Projects SA is a member of the Projects Group of Companies, a wholly-owned Bahrain group which is active in the fields of building and civil engineering, marine and industrial blasting and painting, access scaffolding, trading and property consulting. Besides Projects SA, it enfolds the following companies: Projects Marine & Industrial Services, Projects Scaffold, Projects & Properties and Products for Projects.
The diversity of the group gives it the ability to undertake clients' briefs on either a turnkey or on any combination of individual packages, encompassing one or more of the affiliates.
Commenting on Bahrain's market, he says: "The market is buoyant and we've had a pretty good year. Our five-year plan to grow our business is on target and we have seen our revenue rise. Our turnover has doubled over the past three years and we have set a target to achieve BD15 million ($39.79 million) in the next two years.
'Prospects look very positive although margins have not increased appreciably.
'The open bidding process instigated by the Bahrain Defence Force is now becoming more common and will improve the state of the contracting sector.'
The tightening of the 'free visa' market has had an impact on the contracting sector but affected Projects SA only 'marginally as we took necessary steps to take people on board to make sure our projects did not suffer,' he says.
Projects SA is among the top three construction companies in Bahrain in terms of manpower, according to McAuley. The company is registered as a grade 'AA' contractor with the Ministry of Works which permits it to bid for projects of any value which this ministry puts out to tender.
'We see ourselves in the forefront of the contracting sector as we have as good if not better facilities as our competitors in the market,' he adds.
Projects SA can offer a design-and-build service, which can speed up the overall construction process.
Projects SA is currently working on a number of major projects. These include:
* A BD2 million medical centre for Aluminium Bahrain (Alba), which is due for completion next month (February);
* A 11-storey building for the Ministry of Housing in Isa Town which is due for completion by the end of this year (December 2003). The project is worth BD1.5 million;
* Al Rossais Tower in the Diplomatic Area. The 19-storey building is scheduled for completion in April 2004 (see Regional News);
* An academic block at the University of Bahrain. Projects SA has just started work on this facility which will cover an area of 7,000 sq m. The BD1.5 million contract is expected to be completed in January 2004; and
* The link building at the Bahrain International Exhibition Centre (BIEC). Work on the project, which will serve as a conference centre and as a link between halls one and two, has just started and is due for completion in October.
A major area of diversification for the company has been waterproofing of car-parking decks and similar facilities.
'Hitherto, companies from the UAE have been coming into Bahrain to do this type of work. We moved into this specialist market in 2002 and see good potential in this field,' he says.
Projects SA is currently working on waterproofing the bridge deck of the Shaikh Khalifa bin Sulman Causeway involving a total area of 15,000 sq m.
Founded in 1976, the company has worked with every major consultant in Bahrain, says McAuley. The company is also an approved contractor and has carried out works for the following organisations in the public sector: the ministries of electricity and water, transportation, justice and Islamic affairs, the Bahrain Defence Force, the Royal Court, Bahrain Petroleum Company (Bapco), the Bahrain Telecommunications Company (Batelco), Bahrain Aviation Fuelling Company (Bafco), Bahrain National Gas and Alba.