State-backed developer Mubadala Development Company is to tender two of its largest Abu Dhabi construction projects as lump-sum contracts, as it moves away from deals involving tie-ups with contractors, which have dominated the market for the past two years.

Mubadala is expected to issue tender documents for the Cleveland Clinic and Sheikh Khalifa bin Zayed Stadium in the summer.

Contractors had expected that the Cleveland Clinic deal would be negotiated directly with the joint venture of the local Arabtec Construction and Greece’s Aktor, which held talks with Mubadala in the third quarter of 2008 to execute the entire project on a design-and-build basis.

Sources close to the project say that Mubadala commissioned an independent designer and the joint venture had to make do with a contract for piling and enabling works, which was awarded in December last year. The joint venture had hoped to be awarded the main construction package when the designs were completed, but no award was made.

Mubadala is now inviting other contractors to express interest in completing the Cleveland Clinic project.

Companies approached include the local/Lebanese Arabian Construction Company (ACC), Hong Kong-based CSHK, UK-based Laing O’Rourke, Australia’s Multiplex, South Africa’s Murray & Roberts Contractors (Middle East), South Korea’s Samsung Corporation, as well as the Arabtec/Aktor joint venture.

Located on Sowwah island, between Reem island and the Mina Zayed area of Abu Dhabi island, the project involves the design and construction of a 360-bed hospital and a 324-room clinic, with a total built-up area of up to 417,000 square metres.

The development will also include parking for more than 3,000 cars, and is scheduled to open in 2011 (MEED 16:12:08).

The UK’s Driver Consult is the consultant. Local developer Aldar Properties is managing the construction on behalf of Mubadala. Aldar also worked on the Imperial College London Diabetes Centre on Abu Dhabi island for Mubadala, which was completed in 2006.

Mubadala is also expected to tender the main construction contract for the Sheikh Khalifa bin Zayed Stadium development in Abu Dhabi.

Sources working on the project tell MEED that Mubadala has yet to make a final decision on how to procure the main contract, but they expect it will be tendered in the summer.

Throughout 2008, Mubadala was in negotiations with German contractor Ed Zueblin for the work. However, the discussions failed to end in a contract award.

The scope of the contract involves the construction of a stadium in Khalifa City between Mussafah and Abu Dhabi International airport.

Mubadala has not yet formally announced a capacity for the sports stadium, but contractors expect the developer to ask for a multipurpose arena that is capable of hosting major football games, as well as athletics and other sporting events (MEED 11:7:09).