DTZ: Modern office space in Bucharest reaches 2 mil sqm. OCTAGON to deliver two more buildings in 2014

Modern office space stock in Bucharest reached 2.114 million sqm, at the end of June, around 3% of this area accounting for new office space deliveries. In 2014, 132,000 sqm of office spaces will be delivered, approximately 60% of this area being pre-leased. In the first half of the year five office buildings were delivered, with a total area of 68,500 sqm, most of them being located in the west of the capital.

Hermes Business Campus

OCTAGON CONTRACTING & ENGINEERING has been one of the main office space constructors in the past two years. The company has started the year by delivering building B of the office complex Hermes Business Campus (5- 7 Dimitrie Pompeiu Blvd.), were OCTAGON was general contractor. By the end of 2014 OCTAGON will complete another two office projects: PC Business Center (7- 9 Bucharest- Ploiesti Road), where the company performed infrastructure works and is currently performing superstructure works consisting in concrete superstructure works (encasing, reinforcement, concreting) and metal structure works at building B of the complex Green Court Bucharest (2- 4 Garii Herastrau St).

Office building vacancy rate in Bucharest has slightly declined this year to 15.7%, 330,000 sqm being vacant, although a record rental volume was registered in the first six months. Most of the rental volume was generated especially by relocations, according to real estate consultants DTZ Echinox. Vacancy rate dropped by one percent quarter on quarter, reaching 15.7% at the end of H 1 2014. This is a 0.8 per cent

PC Business Center

decline on the same period of last year, when the vacancy rate was 16.5%.

Right now there are 333,000 sqm of free office spaces in Bucharest, over 30% of them being located in Pipera. Yet, the highest occupancy rate decline quarter on quarter was registered in Pipera, against the other areas in Bucharest - 4%, at the end of the first semester. The vacancy rate in Pipera is now 21%. In Pipera Sud area (Dimitrie Pompeiu St.) the vacancy rate is 8.5%, while in CBD (the central business area) and in west, the vacancy rates stands at 8%, reads a DTZ Echinox press release.

The center- north area has a vacancy rate of 16%, while Barbu Văcărescu – Floreasca area, with a 254,000 sqm stock, reached a vacancy rate of 14% at the end of the first semester.

Green Court Bucharest

The total volume of rented office spaces reached 108,000 sqm in the first half of the year, 25% higher than the volume reported for the same period of 2013. This is the highest rental volume registered within a semester, since 2008, without taking into account the investment made in 2010 by Petrom in its own office building.

Relocation transactions keep dominating the market, accounting for 72% of the total rental volume. New demand – expansions and new comers on the construction market – is 40% above the value registered in the same period of last year and accounts for 28% of the total rental volume.

Prime rents remained stable in the first six months of the year, with variations from 16-18 euro/sqm/month in the central business area, to 15-17 euro/sqm/month in center- north, declining to 12-15 euro/sqm/month in semi- central areas, and to 9 - 12 euro/sqm/month on the outskirts.

For more information click HERE. 

OCTAGON CONTRACTING & ENGINEERING

Phone: (+4)021.232.39.20

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How to Manage Construction Projects During a Rainy Summer

Experts are predicting an increasing number of extreme weather events as a result of global climate change, an important reason for construction firms to look very closely at how they manage the risks associated with bad weather. Build the expectation of bad weather into your planning this summer to keep projects moving and profitable, Construction Global writes.

The weatherman never lies

Recent events have shown the severe impact that extreme weather can have. Heavy snowfall during the 2010/11 winter period in Germany saw construction output in the country decline by a staggering 24 percent. In France, heavy rainfall in February 2012 forced many construction sites to suspend work, delaying the country’s economic recovery from recession.

Across Europe the weather has become more extreme, with wind speeds in Sweden predicted to increase by 0.8m/s per month and winter rainfall to rise by 50mm per month over the next century. In the UK, a recent study by BRE (Building Research Establishment) predicted a six percent increase in wind speeds and every site manager knows the effect that crane downtime as a result of wind can have on productivity.

Plan for bad weather

A proactive and well-planned construction project should allow for unforeseen weather conditions and have in place measures on site designed to mitigate the effects, protect worker safety and cut down on wasted materials and manpower. Construction project planning software can help you to build this contingency into your project management.

A specially-tailored construction weather forecasting service such as the one offered by the Met Office, could provide invaluable advanced warning of bad weather to help plan for delays or re-programme work accordingly.

Take protective measures

Rain on sites can create difficult working conditions for operatives, potentially loosening their grip on tools and machinery and creating slippery surfaces, leading to accidents. Site managers might therefore consider installing protective sheeting around scaffolding, which can also mitigate against wind, or temporary roofing structures.

In addition, polythene sheets can be used to cover construction materials to prevent water damage and straw-filled matting and polyurethane foam used to protect materials from the effects of frost and snow in the winter.

Understand your contractual obligations

If you are forced to stop work as a result of bad weather and the project is delayed, you should understand your contractual obligations in such a situation.

According to the solicitor Gullands, bad weather is treated as a 'neutral' event under most building contracts. This means the builder is normally entitled to an extension of time if the delay is likely to prolong the completion of works, but not to payment for any loss or expense suffered as a result of the stoppage.

In general, if a contract overruns, a financial penalty is imposed on the builder. So, when a delay occurs as a result of bad weather it is important to make an application to the contract administrator for an extension of time on the basis that the delay was not caused by you.

To ensure an extension of time is granted, you must give full details of the delay and identify any event considered a 'Relevant Event' as well as estimate any delay to the completion of works beyond the original completion date.

Takeaways

To limit the impact of bad weather on your construction project, make sure you do the following: Build a contingency into your project plan to allow for unexpected delays; protect your site from adverse weather conditions to prevent accidents from occurring; understand your legal obligations in the event of bad weather delaying your construction project; use construction project planning software to manage any delays that are caused by bad weather.

For more information click HERE. 

OCTAGON CONTRACTING & ENGINEERING

Phone: (+4)021.232.39.20

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OCTAGON is building bored piles for Electric Power Plant 1250 MW Shatt Al- Basra, Irak

Electric Power Plant 1250 MW Shatt Al- Basra

A country with an economy extensively affected by war, full of demolished buildings and a poor road infrastructure, Iraq represents a major business opportunity for construction companies all over the world. As national economy is recovering, housing demand, caused by high deficit at the end of the 20th century, increases and requires significant investment in development projects. Rebuilding Iraq’s roads and transport is vital for foreign companies to transport equipment and merchandise, as they develop their projects in the country.

Electric Power Plant 1250 MW Shatt Al- Basra

Few are those who, despite of having identified the economic potential of the country, are taking the risk of investing in a country with major security issues. OCTAGON CONTRACTING & ENGINEERING is among the companies that have taken advantage of the opportunities provided by the Iraqi market. The company opened a branch in Baghdad in 2011.

Electric Power Plant 1250 MW Shatt Al- Basra

“Our anchor during crisis was the Iraqi market. We decided to try another market with long term growth perspectives and that provides liquidities for infrastructure projects.  The security issues were an advantage for us, as they keep the competition at distance. Right now we are building awareness on the market and we are waiting for a stabilization of the political situation. The fact that we already have three projects ongoing is a positive sign and confirms the fact that we had good intuition when we made this decision.” said Alexandros

Electric Power Plant 1250 MW Shatt Al- Basra

Ignatiadis, co-founder and shareholder of OCTAGON.

OCTAGON has three ongoing projects in Baghdad and Basra. One of these projects is the Electric Power Plant 1250 MW Shatt Al- Basra, where the company is building bored piles D 1.000, for the contractor Metka. The company has a team of Romanian and Iraqi workers and engineers working on the project at high pace.

Electric Power Plant 1250 MW Shatt Al- Basra

OCTAGON is using the experience accumulated while building the biggest private electricity cogeneration greenfield project, built in Romania in the past 20 years: Combined Cycle Electric Power Plant 867 MW OMV- Petrom (Brazi). The construction works were performed between 2009- 2011 and the power plant began the commercial operations on August 1^st 2012. OCTAGON performed geotechnical, structure, architecture, installation (electrical, sanitary) works and exterior works within the project.  

Electric Power Plant 1250 MW Shatt Al- Basra

OCTAGON is also working in Iraq on the construction of a residential project:  Iraq Gate Residential and

Electric Power Plant 1250 MW Shatt Al- Basra

of Al Zawraa Stadium, both located in Baghdad.

A number of large- scale infrastructure and real estate projects are underway and a combination of several factors makes Iraq a favorable business and investment destination. 

Electric Power Plant 1250 MW Shatt Al- Basra

Laws in place for foreign investment allow 100% foreign ownership of businesses in all sectors except oil and mineral extraction. Also non- Iraqi citizens can now own land for housing projects. Investment partnerships with state-owned enterprises are also possible for foreign companies, at present.

 

 

For more information click HERE. 

OCTAGON CONTRACTING & ENGINEERING

Phone: (+4)021.232.39.20

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