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BUSINESS NEWS FLUOR’S PHOSPHATE MEGAPROJECT IN SAUDI ARABIA BEGINS PRODUCTION Fluor Corporation announced that the Ma’aden Wa’ad Al- Shamal Phosphate Company’s Umm Wu’al Phosphate Project in Saudi Arabia has started production of ammonia, merchant- grade acid, and fertilizer. Fluor is providing overall program management services for this $8 billion megaproject, in addition to engineering, procurement, and operations and readiness services for various scopes. “As part of Saudi Arabia’s Vision 2030, this world-class project will have a long-lasting impact on the region, as it diversifies the country’s economy and creates local job opportunities for citizens,” said Tony Morgan, president of Fluor’sMining andMetals business. “After less than four years from the start of

the execution phase, we are proud to have partnered with Ma’aden to bring this facility to production. We look forward to continuing our partnership with Ma’aden in developing their next phase of mining projects in Saudi Arabia through our recently signed memorandum of understanding.” Production has begun on diammonium phosphate fertilizer, merchant-grade acid and ammonia. Phosphate serves as a key element in fertilizer for agricultural crops. As one of the largest integrated phosphate fertilizer plants in the world, the facility will help meet global food supply needs by delivering 3 million metric tons per annum of diammonium phosphate and nitrogen, phosphorous and potash fertilizers.

With a peak site workforce of 28,000 from more than 50 nationalities, Fluor implemented its world-class safety programs, including its Life CriticalSM program, to support the project. As a result of these programs, the project has achieved more than 46 million consecutive work hours without a lost-time incident. MWSPC is a joint venture between the Saudi Arabian Mining Company, the Mosaic Company, and Saudi Arabia Basic Industries Corporation. Fluor Corporation is a global engineering, procurement, fabrication, construction, and maintenance company that designs, builds, and maintains capital-efficient facilities for its clients on six continents.

ED FRIEDRICHS, from page 3

again. One of the biggest problems we would face in the market, I believed, would be individuals who had owned a condominium or who knew someone who had dealt with an HOA lawsuit. We wanted to alleviate that concern by doing what I had proposed years before and, adding to that approach, engaging each contractor for each building with a 20-year maintenance contract. This way, the onus would fall on the contractor to inspect and repair any problems that arise, rather than the HOA having to do a “cash call” whenever a repair is necessary. As developers and architects, we must address the issues with multiple uses in each building; my development partners understood the HOA concerns. They also felt the marketing advantages and the actual experience of living in the West 2 nd District meant taking this approach to risk mitigation was worthwhile. After all, what does a typical HOA board know about the exterior skin, the elevators and mechanical systems, the appropriate reserves to hold for maintenance and repairs and when to spend them? The next time our insurance carrier was in the office, I was asked to present my idea. Their response? “Why doesn’t everyone do it this way?” How times have changed. They were open to and supportive of the idea. We’re now in the process of precisely defining what’s in the master HOA, which will cover many buildings, leveraging our purchasing power, versus the typical HOA which covers individual buildings. The master HOA, much like the typical individual building HOA, will cover cleaning and interior maintenance, replacing light bulbs and carpet, patching and painting walls when required, and, of course, rules and regulations that govern the behavior of the owners, their visitors, and their pets. We’re also in the process of documenting these ideas so we can finalize our covenants, conditions, and restrictions. I’ll keep you posted on our progress, and, along the way, we’ll report on our track record and the results to our homeowners. ED FRIEDRICHS, FAIA, FIIDA, is a consultant with Zweig Group and the former CEO and president of Gensler. Contact him at efriedrichs@ zweiggroup.com.

number of law firms were assigning summer interns to run around with cameras and dictation machines, documenting new condominiums under construction in order to build an archive for possible litigation 9 years later. This was back in an era when “exclusionary” zoning was being rewritten to be “inclusionary,” meaning cities and lenders that felt it was too risky to underwrite a mixed- use building were finally modifying their approaches to encourage and fund mixed-use projects. As a consequence, there was added pressure from many of our clients to take advantage of this new trend in urban development, mixing retail with housing and office uses. “Have you or any of your friends owned a condominium? If so, you have probably heard frequent complaints about the homeowners’ association, their fumbles with managing the building, or, even worse, a lawsuit they have filed about construction defects and the difficulties they’ve had addressing the claim.” With some of the risks mitigated, I studied the condominium lawsuit issue and discovered that most of the problems had to do with leakage through the exterior skin – particularly at balconies, where the exterior finish was interrupted and not properly maintained – and with elevators and mechanical systems. At the time, I proposed wrapping all of these elements under a master homeowners’ association to maintain and service each of these elements for the entire building, including units that were rentals. Sounded great at the time, but I couldn’t get anyone to bite, especially the insurance companies. They’d never done anything like this before, and no one wanted to be a pioneer. As a principal in West 2 nd District, a massive mixed-use project in Reno, Nevada, I chose to pick up the banner

THE ZWEIG LETTER October 23, 2017, ISSUE 1221

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