Gulf Construction Online - Burhan buoyant on restructuring success

Kuwait

Burhan buoyant on restructuring success

01 December 2001

Burhan Kuwaiti General Trading and Contracting Company, a leading infrastructure and building contractor in Kuwait, marks 42 years of successful operations this month. The firm has grown considerably since its inception and more noticeably over the past three years with a string of major contracts to its credit. This success can be attributed to a strategic move initiated by the company four years ago.

In 1997 the Al-Wazzan Holding Group, the parent holding company of Burhan Kuwaiti General Trading and Contracting Company, embarked on a policy of restructuring the firm for the opportunities expected in the new millennium.

A new management team was established during 1998. The company has since embarked on the full spectrum of construction projects including building and infrastructure. A design and build department has also been developed to keep in step with global market trends.

Burhan is currently carrying out several building, bridge, highway and infrastructure projects within Kuwait in addition to actively participating in bidding for similar works in the Middle East and internationally.

''Business has been on the rise, with Burhan having seen its turnover increase by an average of 70 per cent each year for the last three years. It is our intention to continue such growth into the future,'' comments general manager Chris Preece.

The company's turnover for fiscal 2001 is forecast at in excess of $80 million.

''Burhan's knowledge and understanding of the business culture within the Middle East and in-depth risk analysis has proved a winning combination from the outset. Our working relationship with clients is solidly based on a track record of previous successfully completed projects,'' he says.

Burhan Kuwaiti General Trading and

Contracting Company is currently classified a Category 1 contractor for both infrastructure and building construction works and has established a reputation in Kuwait for completing complex projects ahead of programme and to a high standard, Preece points out.

''Burhan is currently carrying out several prestigious construction projects within Kuwait and internationally. These include the Kuwait Oil Company headquarters (see separate article), the new Mowasat Hospital, the Public Institution for Social Security office building, Commercial Residential Complex, the Kuwait National Petroleum Company training complex extension in Kuwait and the Prince Hamzeh Hospital in Jordan,'' Preece says.

Besides Jordan, the company is presently pursuing projects in Syria, Lebanon, Egypt, Morocco, Qatar, Sudan and the Philippines.

Burhan's ability to handle a diverse range of projects comes as a result of the company's recognition of the need to provide:

Qualified experienced engineers and managers;

Project control in respect of time and programme; quality; and financial control; and

Ancillary services with regard to design-and-build as a form of procurement.

''Coupled with the considerable experience of its senior management team, Burhan possesses a large plant holding and a considerable workforce, allowing for rapid deployment of resources to meet client requirements.

''Burhan operates an asphalt batching plant to service its asphalt-laying operations complementing bridge and highway construction, and maintains manufacturing and workshop facilities.''

Burhan employs a managerial, financial, technical and administrative staff of 233, including highly experienced project managers, engineers, designers, surveyors and support staff. Its pool of skilled labour is directly sponsored and housed by the company and totals 542 tradesmen. This large and skilled workforce renders the firm well equipped to handle works related to building, design and build and infrastructure.

''Our ability to serve client needs extends beyond project completion. Long-term maintenance contracts extend the expertise used to construct the project, through to ensuring smooth operation during the project's lifetime,'' Preece points out.

Burhan recognises the need for an integrated solution in respect of project control. This includes financial accounts, management accounts, estimating, planning and marketing.

The solution provides management with effective tools to ensure delivery on time, on budget and to the required quality, Preece adds.

In late 1999 after extensive planning and research, Burhan formed the design and build department to exploit the opportunities this sector of the construction market presents. ''Burhan is currently in negotiations for several design-and-build and design-build-operate-transfer contracts,'' according to Preece.

Burhan's analytical approach to the initial tender for a project, the ensuing CPM for construction and the resulting savings has seen Burhan win recent contracts where its attention to detail was said to be the deciding factor. One such project, Preece cites, is the International Al Murabaha headquarters where construction began late last month (see page 34).

Burhan operates a quality system in accordance with ISO 9001:2000 standards with procedures in place to ensure strict quality controls are implemented on all projects.

Commenting on the construction scene in Kuwait, he says: ''As with most oil-producing nations, Kuwait's growth is tied to the price of oil. With the increase of oil prices in early 2000, the construction sector of the country has shown positive growth. Also, there has been a substantial increase in the number of high-rise buildings being constructed in the country over the past year. This growth is expected to continue in 2002.''

The company aims to strategically expand operations in the Middle East, offering clients in the private and public sectors a quality, on-time product.

''We believe in our ability to offer our clients, in many diverse fields, a comprehensive, competitive and professional service,'' he concludes.