The Building Economist - March 2014 - The Future Issue

The Journal of the Australian Institute of Quantity Surveyors

FEATURING

THE FUTURE ISSUE

THE INFRASTRUCTURE GOVERNMENT CAN IT DELIVER ON BIG PROMISES?

mentoring for future SUCCESS looking for guidance in the qs industry

THE TRUMP CARD OF RIO The TRUMP Empire goes to south america

MARCH 2014

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The

Building Economist

16 20 10

THE TRUMP CARD OF RIO

Those looking for the next boom-town for construction need not look any further than South America and Rio de Janeiro. With the Olympics in 2016 and this year’s FIFA World Cup, Rio de Janerio is experiencing change that has been a long time coming.

MENTORING FOR FUTURE SUCCESS

In an ever revolving market, recent graduates and young Quantity Surveyors are looking for guidance, practical advice and a way to climb the career ladder. Many are turning towards colleagues and current industry influencers as a way to learn from the best.

02 07 08 24 REGULARS 26 MAR 2014

INSIGHT the infrastructure government

– can it deliver on big promises?

The Abbott government has made big promises on infrastructure - $35 billion worth of promises, $11 billion for road projects alone. But we’ve been promised big projects before, only to see them shelved, resurrected, and shelved again.

So how will they deliver?

Managing Editor Jenna Harfield Executive Editor Emma Marshall Art Director Julian Brown - Nose to Tail Chief Executive Officer Michael Manikas

C ON T EN T S

SNAp SHOT

FROM THE CEO

Nuts & bolts

QS KIT

SOCIAL

Contributions Articles relevant to construction economics and related subjects, pictorial material, letters etc are welcome. No responsibility is accepted for unsolicited material. All contributions should be addressed to the editor: Australian Institute of Quantity Surveyors, National Office, Level 6, 65 York Street, Sydney NSW 2000.

The Institute does not, as a body, hold itself responsible for statements made and opinions expressed in this Journal.

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Tel: (02) 9262 1822 Fax: (02) 9279 1400 Email: editor@buildingeconomist.com.au www.buildingeconomist.com.au

Tel: (02) 9262 1822 Fax (02) 9279 1400

Cover: Penleigh and Essendon Grammar School Infinity Centre.

Architect: McBride Charles Ryan. QS: RLB.

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THE BUILDING ECONOMIST – MARCH 2014 – 1

SNAPSHOT IN BRIEF

WORLD’S BIGGEST PERTH ARENA RANKED AMONGST WORLD’S BEST MODULAR BUILDING FINDS HOME IN BROOKLYN The $550 million innovative Perth Arena has been named one of the world’s top

entertainment venues by music industry magazine Pollstar – beating off competition

from established and iconic international venues such as London’s O2 Arena and Madison Square Gardens in New York to be ranked number 22 out of 200 popular venues.

With its design likened to a “crushed beer can” and construction blunders, which cost

around $323 million, this is a great achievement for the sport and music venue. According to Sport and Recreation Minister, Terry Waldron, “This venue has placed Perth on the

The New York borough of Brooklyn is

international touring map, and is now a must-play destination.”

set to welcome the “B2” residential skyscraper which will consist of 32 storeys of prefabricated apartments, seizing the title of the world’s tallest modular building from a 24-storey student dormitory built in 2009 in the English town of Wolverhampton.

NEW AIRPORT OPENS IN MUMBAI A new US$890 million airport terminal has been opened by India’s Prime Minister,

Each of the 40-to-88 square metre

Manmohan Singh, in the city of Mumbai. The four storey Terminal 2 development of the

apartments will be built on the ground

GVK Chhatrapati Shivaji International Airport boasts the ability to accommodate 40 million

in Brooklyn’s Navy Yard industrial park

domestic and international passengers per year.

before being conveyed to a building site in the borough’s Atlantic Yards

The 4.4 million square foot space features “interconnecting light slots” which enable

via truck, and fitted together like the

natural light to reach the lower floors of the building, a fluid design that has reduced

pieces of a gargantuan Lego set by

passenger walking distances, a high performance glazing system to achieve optimal

means of cranes.

thermal performance and mitigate glare, and strategically placed skylights throughout the check-in hall to reduce the terminal’s energy use by 23 per cent.

2 – THE BUILDING ECONOMIST – MARCH 2014

SNAPSHOT

SKINNY SKYSCRAPER APPROVED FOR MELBOURNE Minister for Planning Matthew Guy has approved a new

The 73-storey building will house 256 apartments, along

“skinny” skyscraper for boom area Southbank. The

with shops and cafes on the ground level, an elevated

240 metre residential tower, designed by Melbourne

spa, sauna and pool deck, and an exclusive sky bar.

architectural firm BKK, will be around 12 metres wide at its

Sustainability features will include innovative facade

narrowest point.

technology, on site power generation, sky gardens and a unique, automated car storage system.

THE BUILDING ECONOMIST – MARCH 2014 – 3

SNAPSHOT

MBMpl Pty Ltd Announces Appointment of New Director – Yves Du Bois Australian independent property consultancy MBMpl Pty Ltd have announced the appointment of Yves Du Bois as an Equity Director and have appointed him to the Company’s Board. As a Quantity Surveyor, Yves has worked on key infrastructure projects across Australia, the Pacific and South Africa. Having held senior roles with major Quantity Surveying firms where he has applied his broad commercial acumen to a range of significant projects and delivered high quality projects for his clients with a focus on accuracy, reliability and efficiency.

Over the past 4 years at MBMpl Yves has successfully led the company’s Queensland operations, achieving year to year growth. MBMpl is looking forward to Yves’ participation in the growth and evolution of MBMpl in the years to come.

WORK STARTS ON GEELONG LANDMARKS Construction has started on what has been described on

The Geelong Library and Heritage Centre will stretch over more

Geelong’s new Library and Heritage Centre, which features

than 6,000 square metres and will include a children’s exploration

cutting edge architecture and eye catching design. Labelled

and discovery zone, a heritage centre repository and reading

Geelong’s “most important and cultural building” by Geelong

room, a youth area as well as individual and group study spaces.

Mayor Darryn Lyons, the $45.5 million, nine-storey ultra-modern

There will also be a coffee shop, an exhibition space, a major

building will hold 120,000 print and multimedia collection items,

event room, and community spaces for meetings and learning

and provide public meeting spaces for locals and visitors.

programs.

4 – THE BUILDING ECONOMIST – MARCH 2014

SNAPSHOT

NEW REPORT PROMOTES ENGINEERING JOBS FOR MINING SECTOR

IN BRIEF

According to a new report from Recruitment Company Hays, engineers specialising in certain areas relating to mining operations will be amongst the most coveted professionals in 2014.

Set to enjoy improved job prospects this year, demand will be especially strong for engineers working in the areas of safety, reliability, business improvement, mechanical, electrical and mining engineering.

NORTHERN TERRITORY TOPS CONSTRUCTION TABLE The latest State of the States report by ComSec, which ranks the relative performance of each state and territory against long term historic averages according to eight criteria, (economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements), has put the Northern Territory at the top of the table in terms of the dollar value of construction work done against historic averages.

The Territory also topped the charts in terms of economic growth as well as (low) unemployment, and came second in housing starts and retail spending.

PERTH CITY LINK PROJECT APPOINTS CONSORTIUM T

he highly anticipated, $5.2 billion, 13.5 hectare Perth City

Link project has appointed a Leighton

BRISBANE DESIGN COMPANIES WIN PNG PROJECT Brisbane based Peddle Thorp and James Cubitt Architects (JCA) have been appointed to design and deliver a Papua New Guinea courts construction project in Port Moresby. The $125 million project, scheduled to start construction in early 2015, will house the PNG supreme, appeal and national courts.

Properties and Mirvac Group consortium as developer.

The Perth City Link will feature new transit zones, about 150,000sqm of office and retail space, as well as 1200 new apartments for an expected population of around 3,000 people.

There will also be distinctive urban spaces including City Square, King’s

PNG architects and engineers will provide on the ground support, and will be joined by Meinhardt, who will provide structural and civil engineering services. Aurecon

Square, Queen’s Square and Milligan Bridge Plaza.

will also provide building services expertise.

THE BUILDING ECONOMIST – MARCH 2014 – 5

navigate • select • succeed Conduit Recruitment The Preferred Choice Conduit Recruitment are the preferred recruitment agency for the Australian Institute of Quantity Surveyors. In partnership with them we provide: • Recruitment services to builders, consultants and developers – see our website for our sectors and strengths • Advice on recruitment matters and HR solutions within the construction industry • Salary surveys • Sponsorship of various events including AIQS Annual Dinners, AIQS CPD Events, Excellence in Construction Awards, PIF Yacht Regattas, Young Engineers Awards and many others • Seminars on relevent industry issues such as OH&S, Staff Retention, Recruitment Strategies, Emerging Trends, Economic Forecasts, Workplace Relations, Staff Contract Law, etc

Please direct all queries to Adam Walker at adamw@conduitgroup.com.au or call him on 02 9929 7224.

For all our current vacancies see our website www.conduitgroup.com.au

Call: 02 9929 7224 recruitment@conduitgroup.com.au

FROM THE CEO

The FUTURE ISSUE

As we enter the first few months of the Chinese Lunar New Year in the Year of the Horse, we can now look ahead at what the AIQS has planned for 2014.

2014 will be a big year for the AIQS with the rollout of our online training platform.

Towards the end of 2013 we had a trial run of the live webinar CPD, which was a huge success in terms of participation and attendees. The recorded version continues to be popular with those members wishing to gain their CPD for the Tax Practitioners Board registration. This year we will roll out further live events on tax depreciation and BIM, as well as some other topics that are in the pipeline.

To compliment this CPD offering will be

We are proud to note that our membership continues to grow in all chapters at all grades, and with our new online training platform we will also be able to offer a top up course for graduates of allied disciplines or from unaccredited degrees.

If that is not enough to keep us busy, plans are already underway for the next Infinite Value Awards to be held in Brisbane in 2014. We plan to open the nomination period earlier this year to allow members more time to prepare and submit their entries. The awards are gaining industry recognition globally with a large number of nominations and winners from around the globe in 2013 and we hope this trend continues into 2014.

another online platform, which will be available as an “on demand” service so members can choose where and when they would like to further their professional development, and gain their required 40 hours of CPD for this triennium.

We have large ambitions and high hopes for this year and as always we are grateful for the continued support and engagement from our members.

In another step to improve our digital presence, The AIQS will also be launching a new and improved website as well as relaunching the corporate benefits program (formerly NBSA). We are excited to be transforming it into a more valuable and effective addition to your membership, with fantastic corporate and lifestyle partnerships.

Regards,

Our lobbying and advocacy has also stepped up a gear with three submissions and one media release completed in January; the intention being to further raise the profile of the profession through robust and consistent Government and media engagement.

Michael Manikas CEO The Australian Institute of Quantity Surveyors

On that note we are continuing our push for a formal registration scheme for Quantity Surveyors and have approached this from many avenues, which will hopefully give us several options to take forward this year.

THE BUILDING ECONOMIST – MARCH 2014 – 7

NUTS AND BOLTS

INFRASTRUCTURE SPENDING

NSW 2014–15

2015–16

QLD

$771m

To compliment our feature

$1068m

article on infrastructure, Nuts and Bolts looks at where the government is spending our tax dollars.

2014–15

VIC

$20m 2014–15

WA SA

2016–17

2017–18

2015–16

2016–17

2017–18

$20m $100m $100m $80m 2014–15

TAS

2015–16

2016–17

2017–18

$0m $40m $40m $40m 2014–15

8 – THE BUILDING ECONOMIST – MARCH 2014

2015–16

$698m

$136m $300m $163m $224m 2014–15

NT

2015–16

2015–16

2016–17

2017–18

$5m $20m $25m $20m

TOTAL: $1725m WestConnex Sydney – $1500m, Sydney F3 to M2 link – $255m 2016–17

$1001m 2016–17

$647m

2017–18

$520m

TOTAL: $3487m

2017–18

$40m

Gateway Brisbane – $1000m, Toowoomba Range Crossing – $130m, Bruce Highway – $2092m, Warrego Highway – $200m, Ipswich Motorway Darra Rocklea – $65m

TOTAL: $1758m East West Link – $1500m, Princes Highway duplication – $258m

TOTAL: $823M Perth Airport Gateway – $622m, Swan Valley Bypass –$200m

TOTAL: $300M North South Road Adelaide – $300M

TOTAL: $120M Midland Highway – $120M

TOTAL: $70M Tiger Brennan Drive widening – $70m THE BUILDING ECONOMIST – MARCH 2014 – 9

insight

Can it Deliver on BIG Promises?

By Lynne Blundell

10 – THE BUILDING ECONOMIST – MARCH 2014

Insight

The Abbott government has made big promises on infrastructure - $35 billion worth of promises, $11 billion for road projects alone. But we’ve been promised big projects before, only to see them shelved, resurrected, and shelved again. So how will they deliver on these promises? And do the proposed projects offer the public value for money?

THE BUILDING ECONOMIST – MARCH 2014 – 11

insight

A key focus of the government’s infrastructure strategy is

Investing in roads and freight rail will help commuters in cars

major road projects across the country, with much of the money

and truck drivers reach their destination more quickly and

for these delivered by scrapping pledged federal funding for

improve the efficiency of road-based public transport, says

commuter rail (see major projects opposite).

Truss.

The government argues that it has traditionally been the

He cites the example of WestConnex in Sydney - a 35 kilometre

role of state governments to fund urban rail. Infrastructure

motorway that will link the CBD, west, south-west, airport and

minister Warren Truss told BE that the government is focusing

port - pointing out that bus commuters will benefit from the

on “ productivity-enhancing road and freight projects in these

government’s funding of the project.

fiscally-constrained times.”

“The construction of Sydney’s new rail freight lines will also

Productivity is the key word. With Australian manufacturing

smooth the operation of the city’s urban passenger trains,” says

disintegrating, along with the jobs in these industries, we will be

Truss.

hearing it a lot.

“Our biggest criticism of any government is whether funding is spent properly and whether it is providing Australians with value for money”

12 – THE BUILDING ECONOMIST – MARCH 2014

Insight

What About Public Transport?

But not everyone is convinced that road infrastructure should take priority over

greater benefits to communities rather than just a traditional Treasury view of finances,” says Maher.

public transport. Ken Maher, professor

He would like to see a multi discipline

in the UNSW’s built environment faculty

approach for valuing infrastructure

and executive chairman of global urban

investment on broader measures,

planning and design firm Hassell, told BE

including contribution to property value

that Australia urgently needs to invest in

and healthier communities.

public transport if we want productive, healthy communities.

“This would be a worthy role for the quantity surveying profession to take an

While Europe, Asia and even the car-

active leadership position in, perhaps

dominated US are pouring money

working collaboratively with economists

into public transport infrastructure,

and demographers,” says Maher.

Australian cities continue to be developed around the car, says Maher. This leaves people stranded on the city fringes, away from jobs, with inadequate public transport and poor quality of life.

Increasingly, other countries are recognising that access, equity and connectivity are fundamental conditions for success and productivity.

“Existing transport infrastructure is at capacity in most Australian cities and the cost of unavoidable congestion is projected to be about $20 billion by 2030,” says Maher.

“It is essential that cost effectiveness of infrastructure projects be based on factors that measure the flow-on of the

Delivering Value Michael Manikas, CEO of the Australian Institute of Quantity Surveyors (AIQS), says the institute supports any spend in the construction industry, whether it is on infrastructure or commercial or residential property development.

“Our biggest criticism of any government is whether funding is spent properly and whether it is providing Australians with value for money,” says Manikas.

“And there is nothing more important than dollars when it comes to government spend on these major infrastructure projects.”

MAJOR PROJECTS: AMOUNTS IN MILLIONS ($m) East West Link (VIC) 1500 WestConnex Sydney (NSW) 1500 Gateway Brisbane (QLD) 1000 Toowoomba Range Crossing (QLD) 130 Pacific Highway 2563 North South Road Adelaide (SA) 300 Perth Airport Gateway (WA) 622 Swan Valley Bypass (WA) 200 Bruce Highway (QLD) 2092 Sydney F3 to M2 link (NSW) 255 Midland Highway (TAS) 120 Warrego Highway (QLD) 200 Melb-Bris Railway – freight 180 Princes Highway duplication (VIC) 58 Ipswich Motorway Darra Rocklea (QLD) 65 Tiger Brennan Drive widening (NT) 70 SOURCE: Coalition Election Documents

THE BUILDING ECONOMIST – MARCH 2014 – 13

insight

“Central to the government’s policy is the restructuring of Infrastructure Australia (IA), with legislation recently introduced to Parliament to allow this.

He cites an example of a mining project he was involved in as a quantity surveyor. The costing for the project had relied on computer modelling but had not looked for ways to cut cost.

“With this mine, 90 per cent of the base costs were in levelling the site to put sheds on it. This involved moving millions of cubic metres of dirt off-site, which is very expensive. But by altering the level by 30 cm we were able to save around $200,000,” says Manikas. “I take it for granted that a coster will look at alternatives and think a bit laterally but it is a particular skill set that quantity surveyors have.”

Manikas argues there is a lot of fat built into costing in the construction industry. Changes to the NSW Building & Construction Industry Security of Payment Act, which will see the retention bond held in a state trust rather than by the developer, will go some way to changing this but he would like to see legislation go further by specifying an independent quantity surveyor must cost projects.

“There are so many layers of subcontracting and it is common

He would like to see greater recognition of the role of quantity surveyors in costing and assessing major infrastructure

for contractors to add 5 to 10 per cent to costing to protect themselves from financial loss.”

projects and has been actively promoting this to the incoming

Upfront detailed and independent costing is essential to

government.

overhaul the construction industry, says Manikas, something

“The way things stand right now [in both state and federal legislation] there is no specification that independent costing must be done by a quantity surveyor. Anyone can do it.”

Too often costing and assessing is done by engineers and architects but the skill set is very different, says Manikas.

While architects and engineers tend to look at a similar project

that has been recognised in Dubai following a complete collapse of the sector following the GFC. Quantity surveyors are now in great demand there.

“The lack of budget control on projects here is holding back productivity improvements and restructure of the building industry,” says Manikas.

elsewhere and then make comparative costings, quantity surveyors will provide much more detailed analysis and look at alternatives and options to save money.

14 – THE BUILDING ECONOMIST – MARCH 2014

Insight

Attracting Private Funding

The Business Council of Australia has also expressed concerns

Warren Truss is emphatic that project selection and costing will

about transparency.

be transparent. There will be an emphasis on attracting private

Warren Truss refutes these claims, telling BE that the reforms

sector funding.

provide more, not less, transparency of IA’s functions. The amendments, he says, will better align infrastructure to

“We are working with the state and territory governments to

productivity gains and establish project delivery timeframes.

identify productivity-enhancing projects in each jurisdiction for funding under the Infrastructure Investment Programme,” says

All projects with government funding of more than $100 million

Truss.

will be subject to full cost benefit analysis.

“A Productivity Commission public inquiry is underway looking

He says the government is fully supportive of the need to build

into ways to encourage private financing and funding for major

a high quality urban transport network and that IA will assist in

infrastructure projects.”

identifying priority projects.

Central to the government’s policy is the restructuring of

“However, it has traditionally been the responsibility of the

Infrastructure Australia (IA), with legislation recently introduced

states and territories to fund urban public transport. That is why

to Parliament to allow this.

the Government is committed to providing additional money for roads to free up limited funds for the states to build the urban

“IA will undertake a full audit of our infrastructure asset base,

transport they need.”

in collaboration with states and territories, and develop a 15year infrastructure plan with a pipeline of projects, which will be

It will be a tough gig. Delivering on infrastructure is one of

revised every five years,” says Truss.

the toughest there is and this plan relies on both state and

But the Infrastructure Australia reforms have been strongly criticised both by the Opposition’s Infrastructure Minister Anthony Albanese and IA head, Michael Deegan, whose position

federal co-operation and private funding. The “infrastructure government” has placed itself squarely under the spotlight and there will be much to lose if it fails to deliver on its big promises.

will be abolished if the reforms go ahead.

In his submission to the Senate inquiry on the reforms, Deegan says the changes will undermine Infrastructure Australia’s independence, particularly the proposal to allow the Infrastructure Minister to exclude certain classes of infrastructure for investment, including public transport.

THE BUILDING ECONOMIST – MARCH 2014 – 15

THE TRUMP CARD OF RIO Those looking for the next boom-town for construction need not look any further than South America and Rio de Janeiro. Already in a race against time to complete the design, planning and construction of the citywide redevelopment for the Olympic Games in 2016, Rio is adding another feather to its cap with the development of Trump Towers Rio. BE explores why Rio is the next big thing, and takes a closer look at the development that is sure to become an iconic part of this colourful carnival city.

N

ot since the Sydney Olympic Games back in 2000 has a city come under such scrutiny from the rest of the world. In a similar style

to Sydney, and as the first non-capital city to host the Olympic Games since the Australian games, Rio de Janeiro is not just retro-fitting or adding new sporting facilities, they are attempting a complete overhaul.

Improving infrastructure, ports, and transforming public amenities, Rio has embraced the impending arrival of the 2016 Olympic Games. Project leader Maria Silvia Bastos Marques has said they are attempting to “take advantage of the Games to try and renovate

16 – THE BUILDING ECONOMIST – MARCH 2014

Trump Towers Rio will be the first project in Brazil to bear the Trump name and is set to become the nucleus of the Porto Maravilha area currently under development.

and transform the city” a move that has arguably been a long time

However, with all this attention and activity another global icon has

coming.

seen the potential of the Brazilian city and grasped the opportunity with both hands. Trump Towers Rio will be the first project in Brazil

A booming housing market and the looming global events of the FIFA

to bear the Trump name and is set to become the nucleus of the

World Cup later this year, as well as the 2016 Olympic Games, have

Porto Maravilha area currently under development.

had a further affect on the Rio building and construction market.

According to the National Index for Construction Costs (INCC-M),

MEETING A NEED

compiled by the Fundação Getúlio Vargas, construction costs –

For more than seven years, Rio do Janeiro has had one of the lowest

(which are calculated from materials and equipment, services and

vacancy rates of office space amongst the large cites in the world

labour) – increased by 7.18 percent in 2013.

– between 2% and 7% - and due to the lack of availability of high

THE BUILDING ECONOMIST – MARCH 2014 – 17

quality office stock tenant interest remains high and would support prime rents.

With the existing office buildings in the Central Business District of Rio being one of the most outdated in the world, the need to increase the Class A+ stock has drawn one of the biggest names in development to invest in the area.

Whilst many construction companies are expected to move on after the climatic event of the 2016 Olympic Games, Donald Trump’s empire is going against the envisaged exodus and is putting his Trump Tower name to a new deluxe mixed use complex. This will comprise of; five 150 metre high skyscrapers with 38 floors and 322,400 square meters of gross office space, including a commercial and

For the Trump dynasty, Rio de Janeiro seems to have opened up even more investment and development opportunities. underground space of approximately 450,000 square metres. Trump

developer Trump is keen to be a part of the Porto Maravilha urban

Towers Rio will transform the skyline of the city and aims to put South

revitalisation project, in which over US$ 5 billion is being invested by

America on the global map in terms of prime real estate.

the Brazilian authorities to create the new Central Business District of Rio de Janeiro.

According to those involved with the project, this would be the largest investment in corporate offices underway in the BRICS (Brazil, Russia,

TOWERING ABOVE THE COMPETITION

India, China and South Africa) regions and an exciting development in

With the construction of Trump Towers worth an estimated US$2.6

an area that is often overlooked by foreign construction firms.

billion, the five near-identical silver structures are expected to soar far above the other current buildings in the area, and all together will

However, Stefan Ivanov, CEO of Trump Towers Rio and CEO of MRP

make up the largest office complex in Brazil.

International for Brazil, told BE that it was not only the need for Class A+ office stock in Rio that formed the attraction for this project,

The project’s developers include Brazilian construction company Even,

the large oil discoveries off the shelf of Rio have also captured their

MRP International, hedge fund Salamanca and Caixa Economica

attention.

Federal (Brazil’s No 2 state-owned bank). Ivanov proudly states that this new development “will bring unprecedented world class

These discoveries are projected to bring Brazil among the top six

office space to Rio de Janeiro as well as all the amenities needed

oil producers by 2020, according to Ivanov. The resulting levels of

by large corporate tenants – including restaurants, food courts, and

economic activity will create a demand for significant investment in

convenience shops.”

supporting and non-process infrastructure.

Other features will include pedestrian tunnels and bicycle paths, With all this anticipated growth and development, it’s no wonder savvy

improved connectivity to the major city arteries and two airports, as

18 – THE BUILDING ECONOMIST – MARCH 2014

well as stops for the future bullet train and light rail adjacent to the

Quality of existing stock In Rio de Janeiro CBD

complex.

Late last year, Rio de Janeiro Mayor, Eduardo Paes, told local media that the impending construction of the Trump Towers Rio was a testament to Rio’s continually progressive infrastructure and snowballing foreign investment.

CLASS a+ 6%

“Today, the city is exhibiting great financial strength according to the assessment of the rating agencies. The influx of investments is

CLASS C 40%

a reflection of our efforts and those excellent times for Rio,” Paes remarks.

CLASS a 18%

“Since the beginning of the term of this government, abandoned areas in the city are undergoing rehabilitation – the ‘Porto Maravilha’ project being the best example of that. Here we have a large volume of urbanization and construction projects of new cultural centres, such as the Museum of Tomorrow and the Art Museum of Rio (MAR). The Port will be an economic and touristic centre of the city.”

NOT WITHOUT CONTROVERSY

CLASS b 36%

Whilst Trump Towers Rio is to become the anchor project of the new Central Business District, and has been labeled the “nucleus of the zone” by CEO Stefan Ivanov, the project’s plans for multi-billion-dollar investments in infrastructure upgrades to the area’s transportation

The Poor quality of existing stock Is a key driver for moving to quality

system, as well as its lighting and natural gas piping, has been criticised for the impending displacement of hundreds of families.

Around 1,000 local residents are expected to be evicted from their

For the Trump dynasty, Rio de Janeiro seems to have opened up

homes that currently occupy the site in order for construction to begin,

even more investment and development opportunities. As recently

so that it can be completed ahead of the 2016 Olympic Games.

as January 2014, the Trump Hotel Collection announced another upcoming development of the Trump Hotel Rio de Janeiro, to be

When announcing the project back in 2012, Donald Trump Jr.

located in the up-market Jardim Oceanico district and facing one

diminished the controversy of the displacement of these families by

of Rio’s most magnificent beaches.

declaring that “What this will do for Rio is going to be so positive that any rational individual will realize this will totally outweigh any of those

This luxury development – which will contain; expansive guestrooms

negatives.”

with breathtaking ocean or mountain views, nearly 10,000 square feet of meeting and event space, a 4,000 square-foot pool deck with private

During a press conference, Trump Jr played down the issue, saying

VIP cabanas overlooking an infinity pool with panoramic beachfront

“Conflict is one of those things that, when there’s a vocal minority,

views, a 4,000 square-foot nightclub, 2,200 square-foot spa, and a

obviously that becomes a big problem and when Trump is involved

2,000-square-foot fitness centre – which is all once again expected to

that becomes a great story.’

be delivered by the 2016 Olympic Games.

THE FUTURE OF RIO

As with every Olympic Games hosting city, the world will be looking

For now, Ivanov is now concentrating on moving the project towards

on at the pace of the development with anticipation and scrutiny. Rio’s

success and securing “large Brazilian and multi-national tenants

challenge is to embrace the financial injection and global interest to

seeking top quality office space.”

transform an already iconic city into an even better one. As far as identifying and unlocking the potential of Rio is concerned – the Trump empire once again wins the gold medal.

THE BUILDING ECONOMIST – MARCH 2014 – 19

MENTORING FOR FUTURE SUCCESS I n a n e v er revolvin g mar k et, re ce nt g ra d uates an d youn g Q ua n tity Su rveyors are l o o ki ng for gu idan c e, pract i ca l a dvic e an d a way to c l i m b t he career l add er .

Ma ny are t u rn in g towar ds coll eag u e s an d c u rren t in d u s t ry i nfl u en c er s as a way to l ear n from the be s t.

F in d i ng a m en tor has n ow bec o m e a n i nc reas in gly im p o r ta n t to ol in g et tin g ahea d i n a competitive an d con s ta n t ly c han g in g s ector.

BE e x p l o re s the importan c e of m e nto r i ng in the wor k p l ace an d tal ks to I n f in i t e Va l ue Awar d s Futu re Leader 2 0 1 3 , An dre w Bra dy, an d t he m e n tor d rivin g his su cc e s s .

S

uccessful mentoring, whether informal or formal, structured or natural, is one thing – valuable. Whilst many young

professionals have mixed expectations when considering mentoring, some want a teacher, some want a sounding board, and others want a friend, the emphasis should be placed on developing networks, facilitating exchange and engaging in focused career development.

According to the Australian Youth Mentoring Network, mentoring “provides a structured and trusting relationship that brings young people together with caring individuals who offer guidance, support and encouragement.”

Mentoring programs throughout Australia are in the hundreds – for any age, position and industry, and it is not just the youth of today who are looking for guidance and reassurance.

Australian Business Mentors specialises in mentoring programs for senior executives and business owners, as well as graduates, and believe there is a need for mentors at this high level as today’s competitive market has left many senior executives feeling

20 – THE BUILDING ECONOMIST – MARCH 2014

Winner of the Future Leader Award at the 2013 Infinite Value Awards, Andrew Brady (right), with his mentor, Director of Gray Robinson & Cottrell Pty Ltd, Stuart Gray.

“isolated because of a lack of local peers and feel unable to discuss

from the start of his cadetship – something Stuart has noticed

problems or issues with Board Members or other senior executives

Andrew carry through his career to date.

for fear they may be seen as weak or indecisive.”

“Andrew has always been a keen and driven worker right from the Getting an inside perspective on the industry from an established

start of his cadetship. He has always been willing to go the extra

industry influencer is essential for those who are looking to

mile for clients and is perceptive about what will be the key to their

constantly grow and learn. However, it is important to find the

project’s success. His aptitude to focus on detail and effectively

right mentor.

communicate is second to none.”

For the winner of the Future Leader Award at the 2013 Infinite Value

The practical benefits of mentoring are palpable: developing career

Awards, Andrew Brady, finding his mentor was driven by what he

plans, improving networking skills and learning how to work better

could learn. Working at Gray Robinson & Cottrell Pty Ltd, and more

with clients, and within the building and construction industry this

importantly with his mentor, Director of GRC, Stuart Gray, has

can really help graduates and young professionals stand out from

enabled Andrew to find another level of motivation for his work.

the crowd.

“When I saw Stuart’s enthusiasm for the projects we have worked

Mentor Stuart Gray also sees the value of a structured mentor

on, it is easy to see how he has built GRC to become the company

program in every young quantity surveyor’s education, but also for

that it is. That enthusiasm is infectious and I really appreciate

the organisation. As a company, Gray Robinson & Cottrell (GRC)

Stuart instilling that drive in me,” says Andrew.

has taken great pride in going “beyond the lecture theatre” and helping the QS influencers of the future gain valuable experience in

Stuart was equally impressed with Andrew’s drive and commitment

the real world of construction.

THE BUILDING ECONOMIST – MARCH 2014 – 21

Tips for Finding and Working With a Mentor • Choose a mentor whose goals are similar to your own.

• Find someone who is in the same career as you.

• Your mentor should have time to give to this relationship.

• Take the initial step in establishing contact with a potential mentor since you are the one who will benefit the most from the relationship.

• You must find the time to participate in the relationship with your mentor.

How Can a Mentor Help You? He or she can: • Help you deal with a problem with a co-worker or your boss; • Alert you to new opportunities; • Help you find out how to learn new skills that are needed for your job; • Advise you about whether to accept a job offer or not.

22 – THE BUILDING ECONOMIST – MARCH 2014

“I have learnt the necessity to have strong communication skills with all stakeholders on a project. Stuart has really taught me that the strength to delivering client’s objectives is in the communication and understanding,” he continues.

However, mentoring it is not all about teaching practical skills or handing down knowledge and “lessons” for Stuart, but rather a mentor leading by example.

“I can teach young Quantity Surveyors to become proficient but I can’t teach them loyalty and honesty which are two qualities essential for success. Thus, I have tried to set the example in these valued qualities and have faith in them that they will follow suit.”

It has now become a focus for Andrew to give back himself, and offer his skills as a mentor to the next generation of Quantity Surveyors. From attending career days at secondary schools and tertiary institutions through his involvement with the YQS QLD division (Young Quantity Surveyors), meeting prospective QS students, and serving as a guest lecturer and tutor at the Queensland University of Technology, he is keen to share his knowledge and impart what he has learnt over the past few years.

“I appreciate not only the time and effort that Stuart gave me but all of my mentors that were supportive of me. Now I think it is only right for me to do the same and endeavour to enhance and make a difference to the career of others.”

“Encouraging and motivating young Quantity Surveyors is something that is close to my heart.”

For Andrew and Stuart this successful mentoring relationship is set “I have personally hand-picked each GRC cadet, including Andrew,

to continue into future.

and am proud of the talented professional Quantity Surveyors we have representing GRC today,” says Stuart.

“[The relationship] is different now to when I started as a cadet.

As I’ve grown through the various positions, I’ve had daily contact

Learning from someone who has “been there, done that” and

with Stuart through training sessions, projects, meetings and

cultivating the sharing of knowledge can only open doors for the

workshops. Now Stuart and I continue to catch up as fellow

mentee and enable the key skill of communication to gain the

Directors, discuss different ideas and strategies to meet the needs

importance it deserves.

of this evolving industry and formulate concepts as to how we can help our clients and the next generation of Quantity Surveyors,”

“By having Stuart as my mentor, I have been provided with

concludes Andrew.

opportunities to meet and learn from a magnitude of people across the different disciplines within the construction industry,

Mentoring definitely has a place within the industry and embarking

which has enabled me to gain not only additional skills, but a

on the right mentorship can only enhance the future of Quantity

more rounded understanding of the workings of our property

Surveying. Today’s mentees are tomorrow’s mentors!

industry,” expresses Andrew.

THE BUILDING ECONOMIST – MARCH 2014 – 23

QS KIT

EAT – DRINK – PLAY

BRISBANE Felix Espresso & Wine Bar, 50 Burrnett Lane, Brisbane Mon - Fri: 7:00 am - 3:00 pm

All work and no play makes for a very

this year. Whether it’s eccentric small

dull Quantity Surveyor! With the “silly

bars, local cafes, elegant restaurants or

season” a mere distant memory and 2014

festivals for the whole family - here is some

in full swing, we wanted to explore the

inspiration for you to step away from your

exciting food and wine experiences that are

screen and sample some of the best that

happening in and around our great nation

your city has to offer.

Having only opened its doors in January,

pending, so the intention is for a natural

Felix is a small but perfectly formed urban

evolution from café to café-come-bar that

café sat between Burnett Lane favourites,

serves boutique beers, wines and cider

Super Whatnot and Survey Co. It is another

alongside suitably tasty after-work nibbles.

example of the quirky little venues that

The premises itself is worth checking out

are popping up in laneways around the city

for the design and fit-out alone. Designed

(and the country), adding individuality and

by Peter himself, the café has brought

character in nooks & crannies where you

new life to an old record storage room

least expect to find it.

and is light and airy whilst retaining it’s inner city edge. A sunken seating area

The menu is health-orientated, made

features timber furniture and exposed

from locally sourced ingredients, the

brick walls, softened by bold fabric and

wholesome vision of owners - husband

playful artworks. A welcome addition to

and wife team, Peter Kuhnell (architect) &

the expanding Brisbane food scene.

Gretta Bottomley (chef). Upon publication of this article Felix’s liquor license was still

ADELAIDE

Coonawarra and Adelaide Hills. There

selected to shape this year’s festival,

are interactive events such as celebrity

including local chef Simon Bryant and

hosted cooking classes, decadent vineyard

Adelaide resident and wine expert, Paul

lunches or farmer’s markets where the

Henry, as well as the iconic mother of the

Tasting Australia.

South Australia

rich array of South Australian produce is

South Australian food scene - Maggie Beer

flaunted in all its finery.

herself as the events patron.

AUTUMN 2014

Whilst the focus is inherently on local

“We could not be happier with the team

produce, there is an international flavour

that we’ve put together”, Premier Jay

with past events including; traditional

Weatherill announced. “Maggie, Simon and

Aboriginal feasts, the marriage of Italian

Paul have all played a part in developing

Held every other year, Tasting Australia

inspired food paired with the finest South

South Australia’s food and wine industry

is an eight-day festival that takes place in

Australian wine and vibrant yakitori

and I’m confident their combined talents

April/May. With over 40 events running

degustation banquets. The festival is a

will take the event in an exciting new

across Adelaide there really is something

celebration of great food and wine in all its

direction.”

for the whole family to take part in,

glory.

spanning iconic regions such as the Barossa Valley, McLaren Vale, Clare Valley,

Tasting Australia will be held in autumn A brand new creative team has been

24 – THE BUILDING ECONOMIST – MARCH 2014

2014, with final dates to be confirmed.

QS KIT

SYDNEY Papi Chulo, Manly Wharf KITCHEN OPENING TIMES Monday to Friday Lunch: 12:00pm – 3:00pm Dinner: 5:30pm - 10.30pm Reduced menu available 3:00pm - 5.30pm Saturday 11.30am - 10.30pm Sunday 11:30am – 9.00pm

A Puerto Rican slang term roughly

meats that are smoked in a pit barbecue

of Latin American style with an eclectic

translated as “handsome daddy” or “stud”,

or cooked on a charcoal rotisserie for that

industrial fit-out.

Papi Chulo is the latest venue offering from

distinct “melt-in-the-mouth” quality the

Sydney hospitality giant, Merivale. The

regions are famous for.

concept is a smokehouse come grill where

Having launched on New Years Eve this place will no doubt be a favourite in 2014,

the menu promises to be as sizzling and

Set on the iconic Manly Wharf overlooking

perfect for a quick empanada and beer by

provocative as the name. Taking inspiration

the harbour, Papi Chulo has a relaxed

the water or a full-blown meat feast fiesta.

from Brazil and the American Deep South

hedonistic atmosphere that is so distinct

the house speciality is spice-rubbed

of a Merivale venue, blending the warmth

Brought to you by the same people who

Melbourne café owners, Nathan Toleman,

gave us Top Paddock and Two Birds

Ben Clark and Diamond Rozakeas sure

One Stone, Kettle Black is due to open

know good hospitality and are known for

for business in April. Like it’s culinary

their ability to combine inspiring spaces

siblings, it will be just as attractive,

with unique food combinations as well as

skilfully designed by the same award-

the all important - great cup of coffee.

winning studio “You Me”. The building itself is part Victorian terrace part

Here’s hoping Kettle Black lives up to its

apartment complex, so we can expect an

peers and our expectations.

MELBOURNE Kettle Black, Albert Road, South Melbourne OPENING APRIL

unusual but no-doubt impressive space to sit and while away our disposable income and hours.

THE BUILDING ECONOMIST – MARCH 2014 – 25

SOCIAL

End of Year Social Function Barangaroo, Sydney Friday 29 November 2013

26 – THE BUILDING ECONOMIST – MARCH 2014

Social

End of Year Social Function Dubai, The United Arab Emirates December 2013

If you have held or attended an AIQS event in your area and want to feature it in the Social Pages please send the event details and photographs with the names of who is in the picture to editor@buildingeconomist.com.au

THE BUILDING ECONOMIST – MARCH 2014 – 27

THE BUILDING ECONOMIST – MARCH 2014 – 28