The Building Economist - December 2016 - The Yearly Wrap Up

THE YEARLY WRAP UP

FEATURING FROM AUSTRALIA TO JAKARTA END OF YEAR PROJECT SPOTLIGHT ALEGALPERSPECTIVE ON 2017 CASE NOTES

A SUMMARY FROM THE PRESIDENT THE AIQS ACADEMY DECEMBER 2016

AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS

AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS

AIQS Academy Certificate Available Now Save $1,500!

The AIQS Academy The AIQS Academy is an on demand, online training portal available for all Quantity Surveying professionals. This platform provides further CPD options to AIQS Members or Non-Members and can be accessed from a location of your choice. Each topic takes approximately two hours, but completion can be at your own pace and work around your busy schedule. During the course of 2016, the AIQS Academy will roll out up to 100 topics.

AIQS Academy Certificate Available Now Save $1,500!

The topics available have been individually reviewed and assessed at the highest standard expected by the AIQS for continuing professional development. The AIQS Education Committee will regularly review and update the offerings of the Academy, to ensure a wide ranging and relevant topics. The Academy can be used for your organisational training, enhancing the professional skills of your Quantity Surveyors.

The AI Meet AIQS Membership Entry Requirements The Academy can be used as a pathway to AIQS Membership by ensuring you have the necessary skills required to meet the Institute’s academic entry requirements.

Applicants seeking Institute Membership with a partially qualifying degree (Pathway 2), will be able to meet the academic entry requirements by completing the 100 Academy topics available.

Participants who complete 100 topics will also receive the AIQS Academy Certificate.

Continuing Professional Development The Academy can help you identify knowledge gaps, learn new or upgrade existing skills, as well as provide upskilling opportunities for your project team.

The AIQS Academy is an on dem all Quantity Surveying professio options to AIQS Members The Academy provides continuing professional or N development (CPD) opportunities for AIQS a Members location of your choice.

Each and Non-Members. but completion can be at you Undertaking CPD ensures your skills remain current schedule.

During the course and relevant in addition to ensuring you fulfill your of requirements for continued membership. to

www.aiqsacademy.com.au The topics available have been

16

INFRASTRUCTURE FEDERAL MINISTER DARREN CHESTER

A message from the Federal Infrastructure and transport minister Darren Chester

22

PROJECT END OF YEAR SPOTLIGHT

End of Year Project Spotlight, recognising outstanding projects of value and excellence.

18

FORECASTS

The ACIF Forecasts are released twice a year in May and November, and the November 2016 Forecasts have been keenly awaited so that we can see what remains in the wake of the largest economic event in recent Australian history.

Managing Editor Stephanie Ifill Graphic Designer Guilherme Santos CEO Grant Warner

THE AIQS PRESIDENT

A summary of the Academy from the AIQS President.

"After 3 long years, the AIQS Academy is now being officially launched."

05 39 02 45 REGULARS 09 48 DEC 2016 CONTENTS

REPORT NEW CONSTRUCTION

11

ACADEMY A SUMMARY OF THE ACADEMY FROM

Editorial Contributions The Australian Institute of Quantity Surveying encourages readers to submit their articles relating to quantity surveying, the built environment and associated industries including; construction economics, cost estimating, cost planning, contract administration, project engineering and the macroenvironment.

T: +61 (02) 8234 4009 E: marketing@aiqs.com.au

SNAP SHOT

LEGAL CASE NOTES

FROM THE CEO

EVENTS & SOCIAL

SALARY SURVEY

BUILDING COST INDEX AVAILABLE IN PRINT ONLY

Subscriptions The Building Economist is available to AIQS Members online. If you would like to receive the print version, subscribe for 1 year (4 editions) for $132 (inc. GST) or purchase a single edition for $55 (inc. GST) at www.aiqs.com.au.

Disclaimer The Institute does not take any responsibility for the opinions express by any third parties involved in the development of the Building Economist Magazine.

Advertising To advertise in the Building Economist, contact AIQS Marketing & Communications for more information on available opportunities.

Marketing & Communications T: +61 (02) 8234 4009 E: marketing@aiqs.com.au W: www.aiqs.com.au

THE BUILDING ECONOMIST - DECEMBER 2016 - 1

FROM THE CEO

THE YEARLY WRAP UP

2016 HAS ALL BUT COME AND GONE IN WHAT APPEARS TO BE THE BLINK OF AN EYE This last year has focused on improving communication and engagement and commencing the process of change to ensure the Institute remains relevant and at the forefront of the profession.

It has been a privilege to be part of an organisation that is active in not only raising the profile of the Quantity Surveying profession, but is also receptive to the feedback from members, firms, and other sectors across the Quantity Surveying, Cost Planning and Cost Estimating professions.

Over the course of 2016 the Institute has been delivering on initiatives in support of its Strategic Plan, a number of which are highlighted below.

Publications released during the year include the revised Australian Standard Method of Measurement (6th ed.), which would not have been possible without the significant contribution of former National President, Gary McDonald, FAIQS; and Detailed Building Measurement (Vol. 2) written by Rick Best, FAIQS, Peter Smith, FAIQS and Judy Doherty.

Development of the AIQS Academy, an online training portal with joint venture partner Pointsbuild, commenced in 2015, with 67 Academy topics released in 2016, bringing the total number of topics available to 94. The remaining 6 topics are due for release over the next three months.

AIQS Academy topics are available via the Institute’s website and provide a mechanism for Continuing Professional Development (CPD), staff training AND membership entry (Pathway 2), Acknowledgement must be given to all topic authors, and especially Robert Little FAIQS for his considerable work in ensuring all topics meet the highest possible standards.

The Institute has continued its engagement with the broader construction industry through participation on a number of industry forums including the Australian Sustainable Built Environment Council (ASBEC), Australian Construction Industry Forum (ACIF), NATSPEC, Building Products Innovation Council (BPIC), and the Australasian BIM Advisory Board (ABAB).

Meetings were held with a number of State & Territory Government Ministers and Agencies, highlighting the importance of engaging a Quantity Surveyor from the inception of a potential project. The meetings also developed better ongoing relationships, positioning the Institute as a provider of independent, impartial and expert information.

2 - DECEMBER 2016 - THE BUILDING ECONOMIST

The Young Quantity Surveyors (YQS) network have been active in the last year engaging with people interested in the profession or in the early stages of their career, as well as engaging with representatives from other sectors of the construction industry.

2016 saw significant restructuring of the Institute’s governance systems to improve internal controls and meet its regulatory requirements. This included a revision of the AIQS Memorandum & Articles of Association and By-Laws, the development of a full suite of Policies & Procedures, coupled with new frameworks that will assist in underpinning future growth and enhancing the professional standing of members to their clients. This included: • a significantly revised Code of Professional Conduct • a new Continuing Professional Development (CPD) framework • revised Operating Guidelines for the Education Committee • revised Course Accreditation Guidelines • establishment of a Standards Committee to oversee the review and development of professional and technical standards • revised Conditions of Membership • establishment and implementation of a new Communications Plan • revised Complaints Handling procedures to ensure natural justice and procedural fairness • a new framework for Certified Quantity Surveyor designation to commence in 2017.

Fact Sheets and marketing material has been developed covering: • benefits of engaging a Certified Quantity Surveyor • benefits of membership for Quantity Surveyors

A PROVIDER OF INDEPENDENT, IMPARTIAL AND EXPERT INFORMATION • student membership • what is Quantity Surveying • about AIQS. Implementation of the new CPD framework commenced in the second half of the year with a series of seminars on Contract Law being delivered in Sydney and Perth by Doyles Construction Lawyers. The series will commence in other cities in the new year. The Institute continues to work at both the national and chapter levels to identify CPD offerings for the benefit of members.

A member survey has recently been undertaken to assist in identifying how the Institute can better provide services to members. At the time of writing it is heartening to see that over 500 members had responded to the survey questionnaire. We also undertook what will be an annual Salary Survey, returning a strong participation rate from firms, as part of the initiative to attract younger people into the professions.

On a technical note, the AIQS has participated at both the Trustee and Standards Committee levels in the development of a draft International Construction Measurement Standard (ICMS), to be released in early 2017. David Picken FAIQS (Ret) is to be acknowledged for his numerous hours of work, travel and participation on the Standards Committee. The Institute also adopted the International Ethical Standards, which are reflected in the Institute’s Code of Professional Conduct.

• the rollout of the AIQS Academy with increased access capability for member firms • increasing the amount of national CPD covering a broader range of topics and collaborative events with other sectors of the construction industry • raising the profile of the professions at the high school and university levels, as well as participation with firms at career expos • works associated with hosting the joint ICEC-PAQS conference in November 2018 where we will be looking for innovative and informative topics and speakers from across the broader construction industry in Australia and overseas • increasing the level of engagement with State & Territory Government Ministers and Agencies highlighting the importance of engaging a Quantity Surveyor from the inception of a potential infrastructure or building project and the value add to be gained from such engagement • development of services and information relevant to the contractor estimating profession • rollout of regular Executive Forums around the country, invites to be extended to Executives from firms and organisations across the wider construction sector • raising the profile and portability of AIQS members globally.

I extend a warm thank you to the Institute’s Board of Directors, Chapter Councillors, Committee Members and other volunteers for their time, feedback, effort and input in assisting with many of the initiatives.

Finally, I would like to thank all the staff in Head Office for their tireless efforts over the course of the year in developing and implementing many of the aforementioned initiatives, it has truly been a team effort.

Looking forward to 2017, we will continue with the impetus of change with a number of programs already in place including: • implementation of the Certified Quantity Surveyor designation • commencement of the review of existing Practice Notes and the development of new Practice Standards and Guidance Notes

Grant Warner

CEO The Australian Institute of Quantity Surveyors

THE BUILDING ECONOMIST - DECEMBER 2016 - 3

Integration with estimating tools

SNAPSHOT INDUSTRY NEWS

NEW NATIONAL PRIORITY PROJECTS ADDRESS KEY INFRASTRUCTURE CHALLENGES Infrastructure Australia, the nation's independent infrastructure advisor, has updated its Infrastructure Priority List to include four additional projects that address Australia's current infrastructure gaps and meet the challenges of the future The Infrastructure Priority List identifies nationally significant projects and initiatives in every state and territory.

The List is regularly updated as the Infrastructure Australia Board receives and assesses new business cases from project proponents.

Infrastructure Australia Chief Executive Philip Davies said the Board had positively assessed business cases for the following four projects: • M80 Ring Road Upgrade (Victoria)— High Priority Project • Perth—Forrestfield Airport Rail Link (Western Australia)—Priority Project

• Moorebank Intermodal Terminal (New South Wales)—Priority Project • Adelaide-Tarcoola Rail Upgrade (South Australia)—Priority Project.

“Adding these projects to our Infrastructure Priority List demonstrates that they are sound investments that have the potential to address some of the nation's key infrastructure challenges, such as urban congestion and the need to improve national freight connectivity,” said Mr Davies.

“Congestion threatens economic growth and living standards and could cost Australia up to $53 billion each year by 2031. The Australian Infrastructure Audit 2015 found that without action, road travel times in Perth, Melbourne, Sydney, Adelaide, Brisbane and Canberra could increase by at least 20 per cent in the most congested corridors.

“Melbourne's M80 Ring Road Upgrade is identified as a High Priority Project on the updated Infrastructure Priority List as it addresses road congestion on a 38-kilometre freeway used by more than 160,000 vehicles per day. The M80 Ring Road Upgrade will provide additional capacity on a vital corridor that connects major population centres in Melbourne's north and west to the CBD, and facilitates access to the city's port, airports and other major roads.”

“The Perth—Forrestfield Airport Rail Link will address the lack of public transport access to the eastern region of Perth and

Perth Airport, and reduce road congestion in the city's east. Improving public transport access to Perth Airport will help manage ongoing growth, as passenger numbers double over the next 20 years.

“Development of an Intermodal Terminal at Moorebank in Sydney's southwest is part of a long-term strategy to increase the carriage of freight by rail.

The updated business case shows this project will provide a significant boost to Sydney's intermodal terminal capacity, allowing for much more freight to be transported to and from Port Botany by rail. Port Botany currently accounts for almost 30 per cent of Australia's container exports and imports, and is projected to continue to grow.

“The Adelaide-Tarcoola Rail Upgrade brings forward the re-railing of 600 kilometres of track originally scheduled to be undertaken over the next 25 years. This will improve capacity on the line between Adelaide and Perth, to support the projected growth in national freight volumes.

“Investment in Australia's national freight network is vitally important if we are to make the most of our population growth and our close proximity to the booming economies of China and South-East Asia. At the national level, the Australian Infrastructure Audit 2015 projected the economic contribution of rail freight services to grow from $5.4 billion in 2011 to $9.5 billion by 2031.

The business case evaluation summaries, and the updated Infrastructure Priority List are now available at www.infrastructureaustralia.gov.au

THE BUILDING ECONOMIST - DECEMBER 2016 - 5

GLOBAL CONSTRUCTION INDUSTRY UNITES TO ENHANCE CONSISTENCY NATSPEC HAS RECEIVED REQUESTS FROM GOVERNMENT DEPARTMENTS AND INDUSTRY ORGANISATIONS TO SET UP A REGISTER OF CONSTRUCTION PRODUCTS FOR MORE THAN 40 YEARS NATSPEC HAS BEEN TRUSTED TO PROVIDE UPTO-DATE INFORMATION TO THE AUSTRALIAN CONSTRUCTION INDUSTRY Between 2006 to 2012 there were increasing reports of non-conforming products entering Australia including structural steel bolts, structural plywood products, copper pipe tubing, fire collars and glass sheets.

In recent years, there have been significant issues with electrical cable, combustible cladding used inappropriately, and products with asbestos. Construction products have entered the Australian market with inadequate and/or false evidence of conformance to applicable standards and regulations. This has affected the safety and construction quality of Australian buildings.

The aim of the NCPR is to help the industry mitigate risk in a cost effective way.

It is intended to provide: • Readily available verified information on conforming construction products • An increased awareness and understanding of

the importance of conformity, by designers, specifiers, contractors and manufacturers • Improved safety for the Australian public • A freely accessible system for consultants and contractors to determine if a proposed substitute product has evidence, checked by NATSPEC, of conformity to Australian Standards.

The AIQS supports this initiative which is expected to launched before the end of the year. It will be a voluntary system freely available to the industry, assisting the construction industry and providing support to those companies that provide products that conform to recognised Australian standards.

This initiative has been supported by the following additional industry organisations including: Air Conditioning and Mechanical Contractors’ Association of Australia, Australian Institute of Building, Australian Institute of Building Surveyors, Consult Australia, Engineers Australia, Master Builders Australia and Standards Australia.

6 - DECEMBER 2016 - THE BUILDING ECONOMIST

Launch of public consultation for ICMS, which seeks to improve consistency and reduce risk in the global construction industry Against a backdrop of growing investment demand, construction industry leaders have joined together to establish a uniform approach to calculate costs for the world’s building and civil engineering projects. The ICMS Coalition is leading the creation of a universal system for measuring the cost of construction projects which will allow comparisons to be made on a like-for-like basis between countries.

The International Construction Measurement Standards (ICMS) Coalition, a group of over 40 professional bodies established at the IMF in Washington D.C. in 2015, is calling for professionals to support the collaboration and help embed common standards at the heart of construction investment.

AIQS chief executive officer Grant Warner said “This draft international standard presents huge opportunities for the global cost management profession. As a contributing organisation, the AIQS has worked hard to get the new standard to this point and we now need to hear from Cost Consultants, Quantity Surveyors and Civil Engineers around the world; to ensure we can enhance transparency, invest confidence and public trust in the construction sector.”

“We are seeking input from professionals and all stakeholders in the built environment to help draft this landmark standard and establish international best practice.” Said Ken Creighton, Chair of the ICMS Coalition.

SNAPSHOT AIQS NEWS

CERTIFIED QUANTITY SURVEYOR (CQS) The Australian Institute of Quantity Surveyors is delighted to announce the introduction of its Certified Quantity Surveyor (CQS) designation. AIQS Members with Certified Quantity Surveyor (CQS) designation represent the highest level of expertise within the profession.

A Certified Quantity Surveyor has the requisite education, knowledge and experience to provide exemplary service and advice to clients. A Certified Quantity Surveyor provides independent, impartial and expert advice in identifying and minimising risks associated with time, cost, quality, environment and safety.

Application for Certified Quantity Surveyor (CQS) designation will be available to existing Corporate Members and new Member Grade applicants from 16 January 2017.

For further information, including eligibility visit www.aiqs.com.au.

ICEC-PAQS CONFERENCE 2018 – CALL FOR VOLUNTEERS

ICEC–PAQS Conference 2018 Sydney, Australia

The Australian Institute of Quantity Surveyors (AIQS) is proud to host the joint International Cost Engineering Council & Pacific Association of Quantity Surveyors Conference from the 18 – 20 November 2018 at the newly constructed International Convention Centre (ICC) Sydney. The conference is expected to attract quantity surveyors, cost engineers and project management professionals

from around the world to discuss the latest techniques, standards and issues facing the industry today and in the future.

The AIQS is calling for members who are interested in being involved in the conference advisory groups for activities such as speakers/program, sponsorship and marketing. Please email events@ aiqs.com.au if you are interested.

CONTINUING PROFESSIONAL DEVELOPMENT MEMBER CPD REQUIREMENTS - HAVE YOU EARNED YOUR 15 CPD POINTS FOR 2016/2017?

Members are reminded that there is a requirement to maintain 15 points of Continuing Professional Development (CPD) per annum. This system replaced the triennium-based system as of the 1 July 2016.

You can earn CPD points from local chapter events, webinars, the AIQS Academy and by becoming involved in your local chapter or national activities.

Visit www.aiqs.com.au for more information on your CPD requirements (log-in required).

by Johnathan Mudrovcic, Product Specialist, Exactal (Expires 28 December)

Webinars expiring soon

• From Leadership to amazing Client Engagement - A must do Online!

Presented by Tao De Haas (Expires 26 January)

Did you miss the recent AIQS Webinars?

You can still register for a recording of the session and earn CPD points.

• Subcontractor Comparison Systems: What you need to know presented

For more information and to purchase a recording visit: www.cpdlive.com/aiqs/ recordings/index.html

THE BUILDING ECONOMIST - DECEMBER 2016 - 7

REPORTS

AIQS SALARY REPORT

THE AIQS SALARY SURVEY WAS COMPLETED BY 28 FIRMS ACROSS AUSTRALIA; COVERING WESTERN AUSTRALIA, SOUTH AUSTRALIA, VICTORIA, QUEENSLAND, NEW SOUTH WALES AND AUSTRALIAN CAPITAL TERRITORY.

AVERAGE SALARY PACKAGE 1ST YEAR CADET QUANTITY SURVEYOR (CURRENTLY STUDYING) *Note: salary may be pro-rated based on contracted hours

GRADUATE QUANTITY SURVEYOR (Less than 2 years experience)

QUANTITY SURVEYOR (2-5 years’ experience)

SENIOR QUANTITY SURVEYOR (5-10 years’ experience)

30k 30k 50k 50k 75k 75k 100k 90k

ACT

SA

ACT

SA

ACT

SA

ACT

SA

40k 35k 40k 30k 65k 55k 65k 50k 90k 75k 90k 75k 120k 100k 120k 90k

55k 35k 40k 35k 75k 55k 65k 50k 95k 75k 90k 75k 130k 100k 120k 100k

NSW

WA

QLD

VIC

NSW

WA

QLD

VIC

NSW

WA

QLD

VIC

NSW

WA

QLD

VIC

55k 55k 75k 65k 95k 95k 130k 130k

- STUDY LEAVE - TRAINING BUDGET - HEALTH INITIATIVES - UNIVERSITY FEES SUBSIDY - TEAM EVENTS - POTENTIAL BONUS

- PARKING/CAR ALLOWANCE - PHONE, LAPTOP & TRAVEL - TRAINING BUDGET - STUDY LEAVE - PROFESSIONAL SUBSCRIPTION/ MEMBERSHIP - TEAM EVENTS - POTENTIAL BONUS

- PARKING/CAR ALLOWANCE - PHONE, LAPTOP & TRAVEL - TRAINING BUDGET - STUDY LEAVE - PROFESSIONAL SUBSCRIPTION/ MEMBERSHIP - TEAM EVENTS - POTENTIAL BONUS

- PARKING/CAR ALLOWANCE - PHONE, LAPTOP & TRAVEL - TRAINING BUDGET - PROFESSIONAL SUBSCRIPTION MEMBERSHIP - TEAM EVENTS - POTENTIAL BONUS

- Information is based on the recent AIQS Salary Survey.

- Figures for Tasmania & Northern Territory are not available.

- Salary levels are not an exact science and have been expressed as a range. Salaries are dependent on the individual’s capability, years’ experience, specific expertise and role within the organisation.

THE BUILDING ECONOMIST - DECEMBER 2016 - 9

ASSOCIATE LEVEL QUANTITY SURVEYOR

DIRECTOR LEVEL QUANTITY SURVEYOR

140k 160k 140k 170k 140k 170k 140k 160k 140k 160k 140k 170k 180k 190k 190k 180k 180k 190k ACT

NSW

WA

SA

QLD

VIC

ACT

NSW

WA

SA

QLD

VIC

- PARKING/CAR ALLOWANCE - PHONE, LAPTOP & TRAVEL - TRAINING BUDGET - PROFESSIONAL SUBSCRIPTION/ MEMBERSHIP - TEAM EVENTS - POTENTIAL BONUS

- PARKING/CAR ALLOWANCE - PHONE, LAPTOP & TRAVEL - PROFESSIONAL SUBSCRIPTION/ MEMBERSHIP - POTENTIAL BONUS / PROFIT SHARE ARRANGEMENT

ANTICIPATED SALARIES

NUMBER OF FULL TIME QS EMPLOYEES

Over the next 12 months, firms anticipate salaries for Quantity Surveyors to

The number of Quantity Surveying staff employed (full time) by firms surveyed

Increase

64%

1 to 10

32%

Remain Steady

32%

11 to 30

47%

4%

31 to 50

7%

Decrease

50+

QS JOB MARKET

14%

AVERAGE WORKING HOURS OF QS STAFF

Firms believe the job market for Quantity Surveyors is 4%

37.5 hours

Steady

57%

40 hours

18%

Non saturated

39%

45 hours

61%

50+ hours

14%

Oversaturated

LOCATION OF FIRMS SURVEYED

7%

MALE : FEMALE QS STAFF RATIO

Western Australia (WA)

6

100% male

South Australia (SA)

2

<25% female

36%

Victoria (VIC)

6

26 - 50% female

46%

Queensland (QLD)

5

51 - 75% female

4%

New South Wales (NSW)

7

>76% female

0

Australian Capital Territory (ACT) 2

100% female

0

10 - DECEMBER 2016 - THE BUILDING ECONOMIST

14%

AIQS ACADEMY

A SUMMARY OF THE ACADEMY FROM THE PRESIDENT WHAT AN EXCITING TIME FOR THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS, AFTER 3 LONG YEARS, THE AIQS ACADEMY IS NOW BEING OFFICIALLY LAUNCHED. THERE ARE NOW OVER 95 TOPICS LIVE AND A NEW PATHWAY ENTRY FOR CANDIDATES TO BECOME FULL CORPORATE MEMBERS OF THE AIQS

THE BUILDING ECONOMIST - DECEMBER 2016 - 11

‘thought leader’ in on-line learning for other professionals in the built environment.

AIQS PRESIDENT PETER CLACK

WHAT IS THE AIQS ACADEMY? The AIQS Academy is a series of online topics (courses). The topics are presented in electronic format and come with written material (that can be downloaded), a powerpoint presentation, voiceover to the power point presentation and 20 questions for the candidate to answer at the completion of the topic.

Each topic should take approximately 2 hours to complete and will earn the user 2 CPD points.

PURPOSE OF THE AIQS ACADEMY The AIQS Academy fills several voids for services to our members that the Board felt were previously under delivered.

The AIQS Academy provides: • 95 topics that are based on the AIQS’s core competencies • An entry to Pathway - 2 route for candidates to become full corporate members of the AIQS • An opportunity for members to ‘upskill’ in a particular competency.

• An opportunity to upskill graduates after completing their degrees • Members with access to one of the most robust ‘on-line learning’ libraries within any professional organisation

PATHWAY 2 ENTRY Prior to the launch of the Academy members who wanted to become a full corporate member of the AIQS had only two real choices: Pathway 1 – Complete an accredited degree, carry out the relevant work experience (minimum 2 years) and then sit the Assessment of Professional Competence (APC).

Pathway 3 – Minimum of 10 years relevant experience at a senior level, and then apply to sit the APC. There has always been a third entry route, Pathway 2 which is for candidates that have a non accredited degree.

To gain entry via pathway 2 these candidates would be required to upskill usually via an accredited masters degree course. Due to the time and cost required to undertake a masters degree the AIQS was losing valuable potential members.

The Academy now provides the opportunity for these potential members to pass the full 100 topics and be awarded the 'AIQS Academy Certificate' from the Institute.

Upon receiving this certificate and once the candidate has completed the approved relevant experience the candidate can then sit the APC to become a full corporate member of the AIQS.

• Comprehensive on line learning to maintain CPD requirements • The opportunity for the AIQS to be a

12 - DECEMBER 2016 - THE BUILDING ECONOMIST

"MEMBERS WITH ACCESS TO ONE OF THE MOST ROBUST ‘ON-LINE LEARNING’ LIBRARIES WITHIN ANY PROFESSIONAL ORGANISATION"

UPSKILLING GRADUATES Feedback from the industry over a number of years, is that companies have looked at the AIQS to provide leadership in upskilling graduates.

Professional firms/contractors and engineering houses can now select a topic or group of related topics (cost planning, estimating, measurement, etc etc), for their graduates to undertake at their own pace. These topics will provide enough background for the graduate to gain an understanding of the area their superior is requesting them to upskill in. This in turn will free up graduate's superiors from spending long hours in training.

CPD Three years ago, I was appointed Vice President with the portfolio of CPD. The then President, Mark Hampson, charged me to carry out a complete review of CPD available to our members, how this could be improved and to develop a Pathway 2 entry route for potential members.

As a result, the following initiatives were put in place: • AIQS Academy • AIQS webinars • More structured traditional face to face AIQS CPD events, across all states.

With the AIQS Academy now fully up and running, AIQS webinars planned on a monthly basis and coupled with CPD events from kindred professional bodies and built environment forums AIQS members now have access to a robust CPD regime.

In anticipation with the above being put in place, and to bring the AIQS CPD requirements in line with other professional orgainisations, as of the 1st July 2016, there was a change to the AIQS’s CPD requirements from 40 CPD points triennially, to 15 CPD points annually. The Board also endorsed a 10% compulsory random audit of members each year to ensure all members, young and old, are meeting the new CPD requirements.

The above demonstrates to federal and state governments, statutory bodies, such as the ATO, government departments, and client bodies that engagement of a Quantity Surveyor that is a corporate member of the AIQS guarantees that this Quantity Surveyor, or the Frim engaging this Quantity Surveyor is keeping abreast of new construction technology and techniques, market conditions and trends.

OPPORTUNITY FOR AIQS TO BECOME THOUGHT LEADER As part of the AIQS’s 2020 Strategic Plan, and as part of the Board’s vision for the AIQS to become more relevant within the Built Environment, delivery of the AIQS Academy formed a key component of this strategy.

Now that the AIQS Academy is 100% available, the AIQS has started to market the Academy as an essential online upskilling tool to other kindred industry bodies in both Australia and overseas.

The feedback we have received from bodies such as the New

Zealand Institute Quantity Surveyors, International Cost Engineers Council, Dutch Association of Cost engineers is that the AIQS’s initiative in developing this upskilling online learning platform is ground breaking for an Institute of our size.

These industry bodies, and others, are now starting to recognise the AIQS as a leader in online education and have requested how they can utilise certain points of the Academy to assist their own members. The AIQS is very excited for the potential of the Academy and we see this as just the start of things to come.

THE BUILDING ECONOMIST - DECEMBER 2016 - 13

A THANK YOU TO THE DEDICATED TEAM WHO DELIVERED THE AIQS ACADEMY Importantly, I cannot finish this article without thanking the hard work and dedication of all those involved in putting the Academy together.

Firstly, my thanks must go to Rob Little who was our ‘Quality Controller’ for each topic. Rob’s review process was second to none. The success of the AIQS Academy will be dependent on the quality of the content for each topic.

At the start of the process the mandate was Quality, Quality, Quality. Nothing in the delivery process was to compromise quality, and through Rob’s understanding of the AIQS’s core competencies and his rigorous review process Rob ensured each topic specifically related to the topic title.

Secondly, thank you to Michael Tomlinson, Julie Lintvelt and the Pointsbuild team. Pointsbuild were the AIQS’s joint venture party in putting the Academy together. Pointsbuild are an Accredited Training provider and without their knowledge and expertise in arranging online courses the AIQS would not have been in a position to launch the AIQS Academy.

Finally, I would like to thank the AIQS staff in the head office, Grant Warner, Annick Ah Lan, Lani Kirby and Stephanie Ifill, all who have had involvement in ensuring the AIQS Academy has been delivered.

14 - DECEMBER 2016 - THE BUILDING ECONOMIST

Topics Available as at 12 December 2016

BASIC SKILLS

GENERAL PROCUREMENT ADVICE

MEASUREMENT OF BUILDING WORKS

- Basic Measurement Skills - Communication Skills - Personal & Interpersonal Skills - Business & Management Skills - Computers & IT Essentials - Construction Law & Regulation - Diversity in the Workplace - Safety in the Workplace - Professional Practice - Construction Technology

- Provide Input into the Development of the Project Brief - Collect Procurement Requirements - Evaluate Project Delivery Systems - Undertake Constructability Analysis - Advise on Alternate Contract Types - Introduction to Public Private Partnerships - Engineering Procurement Construction Management

- Preliminaries - Demolition - Ground works – Excavation, Filling &

Hardcore, Paper & Plastic Membranes - Ground works – Underpinning & Rock Stabilisation - Natural Stonework, Artificial Stone,

Terracotta and Similar Work - Metalwork - Windows and Glazing - Driven Piling & Cast Insitu Piling - Formwork - Prestressing - Insitu Concrete - Reinforcement - Drainage - Mechanical Installations - Facade Systems - Doors & Hardware - Painting - Masonry - Landscaping & Road Works - Precast Concrete - Tanking and Waterproof Membranes - Structural Steel - Roofing - Carpentry - Partitions - Wall and Ceiling Finishes - Tiling and Paving - Joinery, Furniture, Fittings and Equipment - Electrical Installations - Carpet, Resilient Finishes and Access Floor - Suspended Ceiling, Applied Finishes, Render + Texture Finishes - Hydraulics

BUDGETARY PROCESS

CLAIMS & DISPUTE RESOLUTION

- Cost Management & Monitoring Procedures - Cash Flow - Budgeting for Projects - Preparing Cost Reports - Appraise Cost Reporting Systems

- Establish Background and Collect Data - Negotiate Claims Under Contract - Dispute Resolution Processes - Expert Witness - Introduction to Securities of Payment - Introduction to Arbitration

COST ESTIMATING

CONSTRUCTION TECHNOLOGY

- Preparing Estimates - Developing Cost Components - Evaluating Cost Estimates - Estimating Procedures & Estimate Reviews

- Foundations & footings - Reinforced concrete construction - Building envelope & enclosure - Building services

COST PLANNING

CONSTRUCTION CHANGE MANAGEMENT

- Data Required to Prepare Cost Plans - Provide Advice on Cost Plan to Client - Undertake Scope Audit - Analyse & Advise on Various Alternative Design Solutions - Project Cost Objectives & Parameters - Prepare Cost Plan - Prepare Project Implementation &

Procurement Plan - Analyse Time Related Cost Data - Cost Estimate Using the Time Related Data

- Establish Extent of Proposed and Actual Scope Changes - Manage Cost Claims During Construction Resource Analysis

TENDER PROCESS

ACCOUNT MANAGEMENT

- Prepare Documentation Inputs to the Tender - Evaluate & Award of Tenders

- Recommend Progress Payments - Prepare Construction Cost Management Document - Manage Cash Flow During Construction - Prepare Progressive Financial Reports During Construction Phase - Arrange Settlement of Accounts during Construction Phase - Rise & Fall Costs, Analysis and Negotiation

STRATEGIC PLANNING - Strategic Advice on Construction Costs - Development of the Project Brief

ETHICS & STANDARDS - Code of Conduct - Negligence - Recognising Australian Consumer Law Issues

SPECIALISATION - An introduction to Facilitation - Value Engineering & Value Management - Introduction to Construction Risk - Introduction to Project Management Ethics & Standards - Recognising Australian Consumer Law Issues

FINANCIAL AUDIT - Bank Reports

THE BUILDING ECONOMIST - DECEMBER 2016 - 15

MINISTER

FEDERAL MINISTER FOR INFRASTRUCTURE AND TRANSPORT

I OFTEN SAY I HAVE THE BEST JOB IN THE AUSTRALIAN PARLIAMENT BECAUSE I GET TO BUILD THINGS WHICH MAKE A DIFFERENCE. As infrastructure minister I’ve had the satisfaction of announcing support for a number of significant projects during 2016 – but I consider the standout policy win to be increased funding for the Melbourne to Brisbane inland rail. I am proud to have secured sufficient funding to ensure the project is locked in and can proceed.

Quite simply, this is a project that will changes lives and save lives.

The detailed alignment is still subject to consultation with key community and customer representatives to ensure we get the best outcome, but the additional $593.7 million commitment we announced in May will allow the Australian Rail Track Corporation (ARTC) to move ahead and acquire the land necessary for building the rail. This additional funding brings the total Australian Government commitment to Inland Rail to $893.7 million.

If you were responsible for costing the project, you would need to account for delivery of around 1,700 kilometres of dedicated freight railway between Melbourne and Brisbane via inland New South Wales (see map), which comprises around 1,000 kilometres of improvements to existing track and 669 kilometres of new railway.

Bearing in mind containerised trade through Australian ports is expected to rise by 170% over the 20 years to 2033, the Inland Rail must be up to the task. That means the rail tracks must be strong enough to carry doublestacked containers on trains of 1,800 metres in length which may grow to 3,600 metres in length in the future - to meet rising demand for freight transport.

Inland Rail will let us move freight more efficiently, thereby increasing productivity, reducing freight costs and allowing rail to take a greater share of

16 - DECEMBER 2016 - THE BUILDING ECONOMIST

the national freight task. In addition to providing a direct and faster link between Victoria and South East Queensland, Inland Rail will create more freight choice to regional New South Wales, and by connecting with the transcontinental east-west rail corridor at Parkes, it also directly links Queensland with to Adelaide and Perth.

The estimated cost is approximately $10 billion, over a ten-year construction period, and I think it will be a wise investment in the future productivity of our regions and our nation.

Of course, when you are dealing with taxpayer funds you need to be thorough in assessing both the costs and the benefits. The Inland Rail has been independently assessed by Infrastructure Australia’s Board as a priority project, and IA are confident it will provide net positive benefits to the Australian economy through improved productivity, better network efficiency and reliability, greater safety and sustainability benefits and reduced lifecycle costs.

Inland Rail’s potential contribution to reducing road trauma is significant.

It worries me that, as a society, we have almost become accepting of deaths and serious injuries as the price of a modern transport system. I am very pleased that Inland Rail will reduce the number of heavy vehicles

result of the Inland Rail.

We also expect to see great gains in productivity because of Inland Rail through reduced travel times and improved access to markets. Inland Rail will shave around 200 kilometres off the rail distance between Melbourne and Brisbane, and around 500 kilometres from the distance between Brisbane, and Perth or Adelaide. The journey time between Melbourne and Brisbane is expected to be cut to less than 24 hours and costs reduced by $10 per tonne. The rail will also provide better access for regional producers to capital city and

IMPROVING ROAD SAFETY IS ONE OF MY PASSIONS, BECAUSE I CANNOT ACCEPT THAT WE HAVE MORE THAN 1200 PEOPLE KILLED AND TENS OF THOUSANDS SERIOUSLY INJURED ON OUR NATIONâ&#x20AC;&#x2122;S ROADS EVERY YEAR. export markets, with an estimated 8.9 million tonnes of agricultural freight to be diverted to Inland Rail.

travelling the entire length of the Melbourne-Brisbane freight corridor by the equivalent of over 200 B-Double trucks each day, by 2050. It is estimated that each year, there will be up to 15 fewer serious road crashes as a

Our challenge for 2017 will be to continue building momentum for the development of the Inland Rail project so itâ&#x20AC;&#x2122;s full delivery becomes a reality - no matter which side of politics is in power. From ensuring free trade between the states within our Constitution, through to the recent trifecta of trade agreements, encouraging trade is at the heart of Australian public policy. Opening doors around the world to Australian producers is pointless if the cost of transport precludes us from getting those goods efficiently to the customer. The Inland Rail will go a long way towards addressing this challenge.

THE BUILDING ECONOMIST - DECEMBER 2016 - 17

REPORT

NEW CONSTRUCTION FORECASTS SHOW POST-BOOM FALLS - AND RISES AUSTRALIAN CONSTRUCTION INDUSTRY FORUM

2016 was always going to be an interesting year for the building and construction industry in Australia. We have seen a once-in-a-lifetime resources boom passed, while we are currently experiencing the momentum of the impending peak of residential building.

The latest industry forecasts by the Australian Construction Industry Forum (ACIF) illuminate a turbulent next ten years as the Australian economy recalibrates itself, with some sectors set to experience a fall in work demand of up to 40% in the coming years.

Forecasts are released twice a year in May and November, and the November 2016 Forecasts have been keenly awaited so that we can see what remains in the wake of the largest economic event in recent Australian history.

Now that the peak has passed, opportunities for the industryâ&#x20AC;&#x2122;s 1.1 million participants are simultaneously softening and relocating, however it is not all bad. The dynamics of business and public spending has seen some expenditure move between sectors, rather than fall away entirely, so the opportunity landscape has changed significantly. We are pleased to present the industryâ&#x20AC;&#x2122;s own forecasts for all sectors, to help businesses navigate this new environment.

The November 2016 ACIF Forecasts project a 6% fall in overall building and construction activity from $220 billion in 2015-16 to $207 billion this year.

However, this mild decline is far from uniform, and the headline numbers mask the shifting demand within each of the three sectors. There is evidence that the surge in Residential Building, especially the construction of apartments, has saturated demand, or is about to. While

Residential Building as a sector will continue to rise until 2017-18, from the following year, the sub sector featuring apartments and townhouses is forecast to begin a fall of up to 40%.

The previous lift in Non-Residential Building and Engineering Construction from the mining boom and related activities has now fully petered out, however the sub-sectors have new public and private investment that makes the distribution of activity uneven within each sector.

ENGINEERING CONSTRUCTION SECTOR The end of the mining and resources development boom has sliced the value of Engineering Construction work done by a third in the last three years and the value of work done has fallen to $95 billion. However, the November 2016 ACIF Forecasts show an increase

18 - DECEMBER 2016 - THE BUILDING ECONOMIST

in infrastructure spending is already underway, which has softened somewhat the decline in engineering activity associated with the resources boom.

Demand in areas such as Telecommunications, Roads and Bridges, Railways and Harbours are positive, particularly in the eastern states. While further falls in overall Engineering Construction are expected this year and next as mining development and supporting infrastructure projects are completed, revised projections point to the fall coming to a halt from 2018-19.

RESIDENTIAL BUILDING SECTOR Residential Building demand reached another record level in 2015-16 and is expected to continue to climb in 2016-17, albeit at a slower pace, before beginning to descend. Reflecting concerns about a potential glut in the market and the threat that this could pose to the stability

of house prices and the banking system, additional prudential controls have reduced the availability of finance to investors and to developers. There are also signs of reduced foreign demand and lower immigration is starting to impact domestic demand. As such, the muchdiscussed sub-sector for apartments and townhouses will see some areas facing a 40% decrease from 2018-19.

NON-RESIDENTIAL BUILDING SECTOR The long-awaited recovery in NonResidential Building is taking longer than expected. The prospects for this type of building work depends largely upon the outlook for non-mining business investment, and while this is improving, it is not yet enough to drive an increase in building activity until 2018-19. Particularly for this sector, concentration on the overall picture risks obscuring where the growth is coming from. Sub-sectors such as Accommodation and Other Commercial will enjoy growth next year, followed by other sub-sectors from 2017-18, in line with the activities where Australia is improving in competitiveness.

ACIF Forecasts November 2016 - 10 year outlook for Residential Building, Non-Residential Building, Engineering Construction

STATES AND TERRITORIES The outlook for building and construction in the next two to three years is more upbeat in the more populous states, especially New South Wales and Victoria.

The projected decline in Residential Building activity will arrive later in these states and will not be as deep, given underlying strength in the economy in these states and continued population growth. Non-Residential Building has been growing in these states, reflecting stronger economic fundamentals.

These states are also leading the way in reinvesting in critical infrastructure.

ACIF Forecasts November 2016 Engineering Construction Total

THE BUILDING ECONOMIST - DECEMBER 2016 - 19

EMPLOYMENT The November 2016 ACIF Forecasts project that employment in construction will fall from 2016-17 and for the next six years.

The projected increase in employment in Residential Building activity in the next few years is no longer sufficient to offset the numbers of jobs lost in Engineering Construction as mining and export infrastructure projects are completed, especially in Western Australia and Queensland.

The decline in employment will deepen when Residential Building activity starts to decline within the next two years.

ACIF Forecasts November 2016 Residential Building Total

WHAT ARE THE ACIF FORECASTS? The ACIF Forecasts are the industryâ&#x20AC;&#x2122;s own forecasts, produced by Australian Construction Industry Forum, which is a peak consultative body for the building and construction industry. The ACIF Forecasts were established to provide businesses across the entire industry with a reliable outlook for their business prospects, to aid better planning and more profitable, successful businesses.

The ACIF Forecasts are rolling tenyear forecasts across three sectors: Residential and Non-Residential Building, and Engineering Construction. These Forecasts are a primary source of market information for the construction and building industry in Australia, providing decision makers with insights into emerging trends that are essential for planning; work demand, labour requirements, construction costs and major projects.

Respected economic modellers, using data from the Australian Bureau of Statistics and Cordell Information,

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ACIF Forecasts November 2016 - NonResidential Building Total

prepare the ACIF Forecasts before rigorous review by ACIF’s Construction Forecasting Council, which is an industry panel of expert analysts and researchers.

HOW THE ACIF FORECASTS ARE PRODUCED The ACIF Forecasts are prepared using top down and bottom up analytical frameworks.

They are prepared by blending macroeconomic forecasts of the domestic and international economy with information about the projected share of construction activity by sector and subsector, by region. The outlook for expenditure is supplemented by Cordell Information’s detailed project database – a repository for the construction project pipeline.

Types of construction activity include Residential Building, Non-Residential Building and Engineering Construction with around 20 sub-sectors across these sectors. The regional analysis splits Australia-wide projections by state/ territory, capital cities and ‘rest of state’. The definitions of the asset types is that of the Australian Bureau of Statistics, to retain constancy throughout years of forecasts.

The ‘top down’ framework starts with the preparation of economic forecasts.

These are compiled through the use of the AUS-M model which is operated by Outlook Economics. The AUS-M model is a large quarterly time series structural model of the Australian economy. It is based on the TRYM model, originally

developed by the Australian Treasury.

AUS-M builds on TRYM by incorporating input-output based demand systems and more industry and commodity detail.

In terms of common labels, AUS-M is a modern Keynes-Klein-style model, to which CGE features have been added.

Forecasts for the global and the Australian economy are prepared. The forecasts include information about policy settings, including fiscal and monetary policies, as well as supply and demand, investment, trade, capital and labour markets, and changes in prices. A high level of industry detail is also provided in the AUS-M forecasts, spanning investment, output, employment and prices. The key elements of the National accounts that relate to construction are tracked in detail, which is very helpful when projecting changes in construction expenditure which is largely a portion of Gross Fixed Capital Formation and public sector spending and investment.

AUS-M also involves considerable information about demographic change in Australia. Information is tracked about natural growth, net immigration and net internal migration.

The Building Activity Model (BAM) draws together ‘bottom up’ information tracking actual construction projects and actual construction spending and employment over the recent past in considerable industry and geographic detail. Data is sourced from the ABS National Accounts and Buildings Approval data, and Cordell

THE NOVEMBER 2016 FORECASTS HAVE BEEN KEENLY AWAITED SO THAT WE CAN SEE WHAT REMAINS IN THE WAKE OF THE LARGEST ECONOMIC EVENT IN RECENT AUSTRALIAN HISTORY Information. The BAM identifies the share of investment in the asset types that make up the residential and nonresidential building and engineering construction sectors by construction type and subcategories and across Australia, by state, by capital city and by the rest of state.

ROLE OF THE CONSTRUCTION FORECASTING COUNCIL ACIF’s Construction Forecast Council (CFC) plays an integral role in shaping the subsector-specific outlook of spending. The CFC is comprised of economists and industry leaders whose role is to review and provide input to the ACIF Forecasts.

Both the wealth of professional experience of CFC members and the unique insight their respective organisations offer ensures that ACIF Forecasts are credible and provide robust demand projections for the industry in Australia.

AIQS members can purchase the ACIF Customised Forecasts Dashboard, where you can create your own query on work demand, construction costs, labour requirements and over 5,500 Major Projects.

AIQS will be providing twice yearly reports of the Construction Industry Forecasts, in the June and December editions of the Building Economist Magazine.

THE BUILDING ECONOMIST - DECEMBER 2016 - 21

END OF YEAR PROJECT SPOTLIGHT

RECOGNISING OUTSTANDING PROJECTS OF VALUE AND EXCELLENCE

PROJECT

END OF YEAR SPOTLIGHT

Client Department of Foreign Affairs and Trade (DFAT) – Foreign Office Quantity Surveyor WT Partnership Architect Denton Corker Marshall Engineers Aurecon Planner PLP Builder Leighton-Total Joint Operation Financier Australian Government Landscape Denton Corker Marshall

THE AUSTRALIAN EMBASSY JAKARTA Jakarta, Indonesia

Acoustics Aurecon

The Australian Embassy is a significant government facility. The Embassy’s presence in Indonesia supports programs in counter-terrorism, transnational crime, prison reform and anti-corruption.

In addition the Embassy supports humanitarian relief, as well as many and varied interactions with Australians travelling in Indonesia.

The New Australian Embassy Jakarta is the largest commercial building project ever undertaken by the Australian Government outside of Australia.

The architectural design by Denton Corker Marshall seeks to represent the cultural diversity of Australia through a multiplicity of expressions, drawn together into a

unified and cohesive whole.

The 52,000m 2 “compound” includes a full basement carpark, Chancery, Head of Mission residences, staff residences, recreation area, full security wall and guardhouses and significant external works – effectively seven projects in one.

The Chancery is physically and

THE BUILDING ECONOMIST - DECEMBER 2016 - 23

conceptually the dominant building on the site and is based on the idea of a series of buildings rising out of the landscape. This speaks of powerful Australian landform images such as Uluru and Kata Tjuta.

Each is clad in a different metal – zinc, copper, brass, steel, aluminium – metals all mined in Australia, reflecting Australia’s natural resources and mineral wealth.

The Executive Residence sits in its own landscaped precinct and strikes a distinctively different note. Here, the aim is to evoke a much more personal and intimate character. A two storey building, the Executive Residence is composed of a series of interlocking blocks which articulate the facades with patterns of light and shade.

The staff residences are stepped in and out to provide identity and articulation to the frontages. The wide landscaped space between the rows is closed at either end by the Recreation Centre and the foliage screening beside the Executive Residence. This creates a fully enclosed, secure and private space for the exclusive use of the residents.

The outdoor recreational facilities are located to the south and west for ease of access and servicing. Earth berms and screen planting provide protection around the perimeter.

Housing the Department of Foreign Affairs and Trade, and 13 other government departments and agencies, the new Australian Embassy in Jakarta successfully addresses the key considerations of national expression, security and operational functionality.

COST DFAT engaged the WT Partnership to provide full and comprehensive QS services across all of the design, tendering, construction and post completion phases.

The design was completed in Melbourne, the works tendered in Canberra and then built in Jakarta.

The budget was prepared in multiple currencies, exposing the Government to exchange rate fluctuation. In addition to the standard cost planning challenges we were required to governance and processing of import tariff exemptions granted by the Indonesian government, quantify extensive security technologies, cost blast resistant façade and security windows never built before, annual government-legislated changes in minimum-wage increases, and fuel-price subsidy reductions which were deemed compensatable claims under the FIDIC Contract.

In the construction phase the team processed over 2,000 client instructions and 200 variations.

TIME A project of this size and scale inevitably encounters challenges during its planning and execution phases. Land acquisition for a diplomatic posting in a very large foreign city suffering from inadequate infrastructure development and subject to ‘grey’ property ownership laws and regulations caused significant program risk.

DFAT invested heavily in managing and monitoring the project program through the design and into construction.

There were substantial variables to be considered including the number of individual buildings, the scale of the security wall, guard houses, climate, religious holidays, DFAT security requirements, blast ratings and local labour expertise. Any slippage in progress by the Contractor was immediately identifiable and mitigation measures were put in place.

QUALITY During the construction of the project various community activities and events were undertaken by the project team including Street Art Mural competition on the site hoarding, Community Clean up

24 - DECEMBER 2016 - THE BUILDING ECONOMIST

and Maintenance Days. Contractually the participating Contractors and Suppliers were to use a maximum local content in the works, employing and engaging the local community.

The façade design focuses on creating a large thermal mass, providing insulation to the building. Utilising the blast resistant facade, the effect of external loads on the building was minimised, which is critical in the Jakarta environment.

Mechanical Services systems were designed to meet Section J – BCA 2010 energy efficiency provisions; and 4.5star base building energy rating to the National Australian Building Environment Rating Systems (NABERS) energy rating for Chancery building; and 5-star Australian green building council green star rating for new office design (V3.0).

Onsite waste management processes were incorporated into the design.

More than 20 existing onsite mature trees were reused in the final project landscape layout, including 4 massive Banyan trees which have significant local cultural and heritage value. The trees have seen the Embassy enter the Indonesian Guinness Book of Records.

These ESD initiatives provide the compound with outstanding sustainability credentials, significantly reducing the environmental footprint.

Initial Budget $AUD 415M Final Cost $AUD 415M Target Completion Date FIDIC (Date for Taking Over) – 31 August 2015 Actual Completion Date 31 August 2015 Date Started February 2010 Size 52,000m2 Location Jalan Patra Kuningan Raya Kav. 1-4, Kuningan Timur, Kecamatan Setiabudi, Jakarta Selatan, Aceh, Indonesia

The project team quickly learnt, on such a high-profile project, that the typical project management paradigm of time, cost and quality, has a fourth element added to it… that being public relations.

And for that matter the Government and stakeholder awareness of such. The associated management, approvals and decision making processes were under constant scrutiny from all directions.

Building a development of this size, complexity and multitude of functions to Australian Standards in the Indonesian construction market was exceedingly challenging. Undertaking a project of this nature involves numerous stakeholders including, DFAT-OPO, their people, the Project Manager, consultants and advisors, the contractor, subcontractors, suppliers, as well as local legislators. Whilst it would be incorrect to say we always agreed (the project threw up daily tests); when it mattered, the team pulled together which fostered a great ‘can do’ environment to be a part of.

The project was finished on time, within budget and to high levels of quality. The subsequent awards which have recently been received by the Client and Designers for the project are testament to initial DCM design concepts and the team put together to implement them.

Commercially and from a cost management perspective there was a long list of challenges during cost planning and through construction;

including (to list a few): • a large mixed-use development combining Diplomatic, Office, Ceremonial, Residential and Leisure functions across 5 distinct buildings • 13+ Australian Government departments and tenant agencies operating from the Chancery building • achieving BCA standards in a foreign market • FIDIC Redbook Form of Contract • legislated market-wide annual increases in minimum wages, • legislated reductions in fuel subsidies • high-level security detail overlays in almost every facet of the built environment externally and internally • Client-specified nominated suppliers • A main works contract sum across five contract currencies.

In conclusion, working on the New Australian Embassy complex in Jakarta was a fantastic experience. I learnt a lot along the way (and got married and had 2 children). Commencing cost planning work on the project in March 2010, relocating to Jakarta in September 2011, and working continuously through construction to hand-over in August 2015, it certainly was an endurance event.

NAME: STEWART LYONS, MAIQS TITLE: ASSOCIATE FIRM: WT PARTNERSHIP LOCATION: SABAH, MALAYSIA

THE BUILDING ECONOMIST - DECEMBER 2016 - 25

PROJECT

END OF YEAR SPOTLIGHT

Client Tepcorp Quantity Surveyor Mitchell Brandtman Architect SJB Interiors Engineers M & G Consulting Builder Peloton Constructions Pty Ltd Financier OL Master Pte Ltd Date Started July 2015 Size 24,500 sqm

100 HARRIS STREET

New South Wales, Australia

Location 100 Harris Street, Pyrmont

100 Harris Street is an early twentieth century building that stands testimony to the transition from classic `Free Federation' style to an early Australian Art Deco. This project was for the complete refurbishment of an historic wool shed in the historic Pyrmont precinct of Darling Harbour.

Renowned Sydney architectural practice, SJB was engaged to take this historical building into the 21st century, transforming a landmark warehouse into a thriving nexus of state-of-the-art office spaces.

The design goals were to open up the structure as much as possible to improve natural light levels and create a memorable open plan workplace suitable for creative industries. While the exterior retained its original form, the interior was opened up to light and air, allowing through ventilation and light penetration on all sides. The massive timber beams will be retained on each of the five floors, and communal spaces interspersed with independent office zones, creating a sense of community in the workplace. The existing saw tooth roof was opened up and revealed as a key signature element of the building. A new entry space was created of Pyrmont Street with retail activation and a shared collaboration lobby.

26 - DECEMBER 2016 - THE BUILDING ECONOMIST

Fairfax media-owned Domain Group has become the first large tenant to move into this space due to its convenience and prominent location with a large open plan funky warehouse feel.

New York based company WeWork has followed on with its second Sydney location opening up just this week in the 10 Harris St space. This will be home to 1700 new members and offers a variety of spaces to cater for all types of companies. WeWork has brought in interesting design elements and art to bring the space to life, including commissioning local mural artist Georgia Hill to deliver a 15 metre-long mural which can be seen on entry to the main lounge as you walk through a tunnel of LED lit mesh screens. Also included are 15 silk screen works by Sydney artist Kate Banazi in collaboration with Diego Berjon.

Target Completion Date November 2016 Actual Completion Date Staged form September 2016 Date Started July 2015 Size 24,500 sqm Location 100 Harris Street, Pyrmont

This was a great project to work on due to the size and nature of the job.

It is great to see such an empty dilapidated space now turned into an inviting, modern workspace that offers an open plan and collaborative culture.

The unique architectural design with the centre atrium spotlight feature, brings light and energy to the building, while the existing exposed timber column beams and floor framing is also rather unique for the end user.

From a Quantity Surveying perspective, any slight variation could easily become a significant cost so we had to be conscious of a knock on effect of any increase in market costs or trade coverage.

In addition, as the build progressed we had to address and eventually replace the unknown parts of the building that where assumed to be in working order.

It has been a privilege to work on such an iconic commercial project that now brings over 2000 people to the area of Pyrmont. Great to work with such a professional team on this high quality project, offering an end result that has certainly transformed the area along Harris Street Pyrmont.

NAME: SIMON BRANDTMAN, AAIQS TITLE: DIRECTOR SPECIALISM: 5D QUANTITY SURVEYOR FIRM: MITCHELL BRANDTMAN LOCATION: SYDNEY

THE BUILDING ECONOMIST - DECEMBER 2016 - 27

PROJECT

END OF YEAR SPOTLIGHT

Image provided by Hansen Yuncken Photography by David Weirzbowski’

Client Department of Health and Human Services Quantity Surveyor Donald Cant Watts Corke Architect Billard Leece Partnership Civil / Structural Engineers Irwin Consult Building Services Engineers Waterman Builder Hansen Yuncken Landscape Lawrence Blyton & Associates

The $75 million Albury Wodonga Regional Cancer Centre brings to the community a new level of care for cancer patients. The Centre combines cancer related services from all over the Albury / Wodonga twin city region, including Albury Wodonga Health, Ramsay Health Care, Genesis Health Care and Border Medical Oncology.

Patients from all over the surrounding districts now have access to a comprehensive set of specialised cancer services, all under the one roof. By eliminating travel and bringing much needed services closer to home, this enables greater comfort for patients.

The Cancer Centre’s design surrounds two ground level courtyards with

ALBURY WODONGA REGIONAL CANCER CENTRE New South Wales, Australia

both the internal and external facades featuring large windows allowing for an of abundance natural light to enter all rooms. This creates a space of healing and positivity and steps away from the more traditional designs which tend to be more ‘cave-like’ and lacking natural light.

The use of green on the facades reflects the nature that surrounds the Centre, reinforcing a sense of calm and further promoting a place of healing.

Connectivity between spaces was a key design goal, ensuring ease of access to all levels. The Centre also connects to the Albury Hospital through a corridor on the upper level, aligning with this vision.

28 - DECEMBER 2016 - THE BUILDING ECONOMIST

Spanning over three floors the three bunker radiotherapy centre includes a 30 chair chemotherapy day clinic, 30 bed inpatient ward as well as consulting, allied health and wellness facilities.

Donald Cant Watts Corke were initially appointed in 2009 to assist the project partners in their bid to the Federal Government Health Infrastructure Fund.

This process established the project budget of $75 million; the project was successful in receiving the requested funding.

In 2011, Donald Cant Watts Corke were then appointed by the Victorian Department of Health and Human Services to provide Quantity Surveying and Cost Management services for the

This was the third Radiotherapy Centre project we had completed for the Department of Health and Human Services, and followed on the successful completion of the Sunshine Radiotherapy Centre at the Western Hospital Sunshine and the South West Radiotherapy Centre at Warrnambool.

This project was unique in that it incorporated the full gamut of cancer centre services incorporating the Radiation Oncology, Day Oncology, Clinical Trials, Education, Wellness and Consulting/Outpatient facilities.

The project also incorporated four project partners, namely Albury Wodonga Health, Ramsay Health Care, Genesis Health Care and Border Medical Oncology. This required us, and the design team, to be cognisant of the varying requirements of each

of the project partners and to find solutions that met each of their individual needs.

Our real pride in this project is the fact that we assisted the Project Partners in their bid for funding the project in 2009, and then had the opportunity to deliver the project once funding was achieved; ultimately seeing the project delivered within the funding parameters.

The project demonstrates in our view what can be achieved when the client group and the consultant group form a close bond as well as a strong working relationship with complete buy-in to the vision of the project.

This is particularly evident in the “big window” façade, which is a striking feature of the project - delivered cost effectively within the budget.

NAME: STEPHEN MCCOULLOUGH, FAIQS TITLE: MANAGING DIRECTOR – VICTORIAN QUANTITY SURVEYING SPECIALISM: QUANTITY SURVEYING AND COST MANAGEMENT FIRM: DONALD CANT WATTS CORKE LOCATION: MELBOURNE, VICTORIA Image provided by Hansen Yuncken Photography by David Weirzbowski’

design and construction phases of the project.

The project was completed on budget.

It incorporated a number of client requested changes throughout the design phases, which were funded through contingency and value management processes. The budget was also able to absorb significant latent conditions discovered in the construction phase. In spite of these latent conditions the project was opened in accordance with the initial time frame.

The project also included the successful delivery of a PET scanner as a separate facility. This was undertaken as a separate building contract ahead of

the Cancer Centre Project, which was also delivered on time and within the allocated budget.

The project incorporated numerous environmental features. The use of high performance glass and thermally broken frames in the façade enabled high levels of natural light into the facility whilst maintaining patient and staff comfort within the facility. A mixed mode ventilation system utilising active chilled beams was implemented to provide an optimal air conditioning system within the building. Rain water harvesting was incorporated to provide water for landscape irrigation, whilst the architectural design also incorporated

thermal chimneys, with administration and office areas to assist in the provisions of natural light in these areas as well as enhancing staff comfort.

Initial Budget $75m Final Cost $75m Target Completion Date February 2016 Actual Completion Date June 2016 Date Started November 2011 Size 8,200 m2 Location NSW, Australia

THE BUILDING ECONOMIST - DECEMBER 2016 - 29

PROJECT

END OF YEAR SPOTLIGHT

Client Victorian Department of Health and Human Services Quantity Surveyor Donald Cant Watts Corke Architect Sliver Thomas Hanley Dary Jackson Joint Venture Builder Lend Lease Building Contractors Building Services Engineer – WSP Parsons Brinckerhoff

BOX HILL HOSPITAL REDEVELOPMENT Victoria, Australia

The Box Hill Hospital Redevelopment has brought a new level of healthcare to the Eastern Suburbs of Melbourne. The redevelopment has provided new stateof-the-art facilities and boosted the site’s capacity and service offering. The Hospital is Eastern Health’s largest, and is able to care for an additional 10,000 people each year from Melbourne’s East.

The $447.5 million project was funded

by the Victorian State Government and delivered by the Department of Health and Human Services (DHHS) under a Managing Contractor contract. The Redevelopment project is the largest value project of its kind to have been delivered by the Department in the last 10 years.

PROCUREMENT

The project provided DHHS with the

30 - DECEMBER 2016 - THE BUILDING ECONOMIST

opportunity to introduce a new form of procurement within the public healthcare sector for Victoria. A modified Queensland Major Works contract was implemented to deliver a Guaranteed Maximum Price Managing Contract, stepping away from the models generally associated with large Victorian hospitals such as Lump Sum, Construction Management or PPP. Along with the new form of

procurement, the Department also changed its management procedure, utilising an in-house Project Director and Project Managers rather than external PM Consultants. This led to a very close working relationship between the Department and Eastern Health, which enabled them to focus on the optimum outcome of project scope, value and budget.

The new procurement and delivery model has been deemed so successful, that it has been utilised again on the Monash Children’s Hospital, due to open in late 2016, and also on the Joan Kirner Hospital, which is currently in design. A key focus of the new model was a heavy emphasis on a ‘one team’ mantra, taking a holistic approach to the delivery of the project.

Any issues that arose, were dealt with by an all-inclusive team effort; shifting away from blame and focusing on identifying and rectifying the issue as a team.

Project Director, Liz Maddison confirmed the success of the new approach: Planning new hospitals is very complex but this hospital has had a highly professional one team approach which has meant that problems are identified, analysed and resolved in a collegiate atmosphere. As with all contemporary hospitals, the information and communication technology is the most challenging aspect of all of the project elements.

REDEVELOPMENT

Following the demolition of the existing Clive Ward Building, the new build took place adjacent to the existing operating hospital with minimal disruption over a 34-month period, opening in September 2014. The staged transfer of patients from the existing to the new hospital was successfully co-ordinated over a six-week period. The refurbishment of the retained existing hospital buildings was completed in December 2015.

The new 52,000m² Hospital is 10 storeys with a two level basement carpark.

The redevelopment increased the site’s capacity by 200 beds, delivering a total

of 443 inpatient beds that are inclusive of 18 ICU beds, 11 new operating theatres and specialist cardiology and oncology services. A larger emergency department was also established.

Maternity and post-natal services have also been significantly expanded with 10 birthing rooms, five of which are inclusive of birthing baths, 31 post-natal beds, as well as specialised nurseries and foetal care areas.

One of the key successes of the project was the ability to offer an additional level to the building, providing 64 beds in new modern accommodation, in lieu of remaining in the existing hospital.

This was achieved through careful cost planning and value management of the project, with the design phases utilising the collaborative working relationship between the Department, Eastern Health, the consultants and the Managing Contractor.

In a message from the then Premier of Victoria, The Hon Dr Denis Napthine, MP and the then Minister for Health and Ageing, The Hon David Davis MP, the successful cost-saving was praised: The Victorian Coalition Government is not only delivering this vital piece of infrastructure ahead of time and on budget but we have also made substantial savings through our sound investment strategy which has allowed us to drastically increase the scope of the project. The environmentally-friendly redevelopment now includes an additional floor, within the original budget.

send signals to the nurses if a patient-atrisk tried to get out of bed. The nurse can then call the patient to see if they would like to get out of bed and/or let them know they are on their way. This helps to combat dangerous falls, or if too late, reassure the patient that help is on the way.

A Messenger paging system was also implemented to increase the efficiency in communication. The system can send text messages to wireless and fixed telephones as well as computers, smartphones and radios. A Responder 5 Nurse Call system is also present in the Messenger system to alert staff to a range of actions including Bed Exits. Clear and effective communication systems are paramount for the safety of patients.

DESIGN

The Hospital project had a clear vision of being a medical facility that provided a sense of calm and tranquillity, providing a healing environment that patients feel conformable in. Light, colour and design were all taken into account to create a connection with nature and hence create a positive ambience in a place that is typically associated with illness.

It was important to steer away from the stark and clinical atmosphere hospitals often have that tend to intimidate and cause stress for patients. Careful consideration was put into the choice of colour pallet to reinforce a calming and healing environment.

Building capacity for the future enables Box Hill Hospital to treat more patients and deliver expanded theatres, diagnostic services, specialist clinics and staff facilities. We are proud of the additional benefits we have been able to provide at Box Hill Hospital.

The use of bold green and grey on the inner courtyard façade reinforces the step away from the expected hospital typology, giving it a modern and fresh feel. Elements of green and grey flow throughout the interior accompanied by green plant-like wall motifs that can be found throughout.

The green-grey colour palette evokes a sense of calm and is also symbolic of nature.

Advanced medical technology was also a key integration into the new hospital. One innovative installation included the hightech falls prevention beds that occupy every room. These safety-conscious beds

To further create a calming and healing environment for patients, natural light was maximised. With high ceilings, large windows and glass doors, the Hospital’s central atrium is a bright space, flooded

THE BUILDING ECONOMIST - DECEMBER 2016 - 31

with natural light to meet patients upon first entrance.

In line with this, the hospital rooms were also designed with both the patient and staff as the primary focus. Patients will benefit from the large windows that provide an abundance of natural light as well as a view of the inner courtyard and the nature surrounding the hospital; adding to the feeling of pleasantness and positive healing.

The Box Hill Hospital Project has become the benchmark and model for which the Department of Health and Human Services in Victoria now run their major projects. So successful was the contractual model it has been rolled out across both the Monash Children’s Hospital Project and the Joan Kirner Women’s and Children’s Hospital Project.

The Collaborative Managing Contractor model involved a steep learning curve for all members of the project delivery team including the Project Director, the Managing Contractor and the Consultant Team.

The highly collaborative nature of the project involved a heavily process driven stream of communication which ensured close scrutiny was maintained on all aspects of the project including costs, delivery timeframes and the building’s quality. These processes have subsequently been streamlined and further developed as a result of the Box Hill Hospital Project and implemented on the Monash and Joan Kirner Projects.

NAME: STEPHEN MCCOULLOUGH, FAIQS TITLE: MANAGING DIRECTOR – VICTORIAN QUANTITY SURVEYING SPECIALISM: QUANTITY SURVEYING AND COST MANAGEMENT FIRM: DONALD CANT WATTS CORKE LOCATION: MELBOURNE, VICTORIA

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Bedroom layouts provide patients with a view, whilst staff have a clear range of vision to enable patients’ safety. This ensures any emergencies or falls are spotted and acted on as fast as possible.

Donald Cant Watts Corke provided Cost Management services for this project, which was delivered on budget, ahead of schedule, and where an additional floor could be added. Further, savings the team achieved on the Main Build were also able to be filtered into the refurbishment works, allowing an expanded scope and extent of refurbishment to the existing hospital.

The Box Hill Hospital Redevelopment was one of the largest projects delivered by the Victorian Department of Health; its success exemplifies the Department’s foresight and ability to deliver an outstanding project of such size and significance.

Initial Budget $447.5 m Final Cost $447.5 m New Building Target Completion Date December 2014 Actual Completion Date September 2014 Refurb Building Target Completion Date December 2015 Actual Completion Date December 2015 Date Started November 2011 Size 52,000m2 Location Melbourne

PROJECT

END OF YEAR SPOTLIGHT

Client Anglican Church of Australia Collegiate School of St Peter – St Peter’s College Quantity Surveyor Donald Cant Watts Corke Architect Matthews Architects Engineers Bestec (Engineering Services); SMEC (Structural and Civil) Builder Kennett Pty Ltd Landscape Oxigen Acoustics Resonate Acoustics Project Manager Watermayne Projects

PENTREATH MIDDLE SCHOOL, ST PETER’S COLLEGE Victoria, Australia

The St Peter’s College Middle School’s Pentreath building exemplifies the successful incorporation of contemporary design to a historical building. The refurbished and expanded heritagelisted Pentreath Building provides a 21st century learning environment for current and future students.

HISTORY Built in 1935, the Pentreath building was originally a boarding house named “School House”. The building’s current namesake, Reverend Arthur Godolphin Guy Carleton Pentreath, was appointed Headmaster of St Peter’s in 1933 at the age of 31. This made him one of the youngest headmasters in the school’s history.

Under his leadership the school took a shift towards a more progressive approach to learning. Incorporating into the curriculum a range of subjects including arts, creative learning, engineering and physical fitness, Reverend Arthur Godolphin Guy Carleton Pentreath broadened the horizons of the school, offering boys a more diverse education.

Today, the history of the building and its namesake is still of high importance to the school so it was crucial for the design team to preserve the existing heritage

facade whist revitalising the building to create a modern learning environment that reflects the values instilled by its history.

DESIGN Prior to the restoration, the building was under-utilised and not dynamic enough to facilitate the modern student.

The architects of the project, Matthews Architects, took careful consideration into how the design would not only complement the historical aspects but advance the building functionally, to take on the educational needs of current and future students. Design was based around how current students and staff use the spaces as well as envisaging their future use.

Establishing a student-focused and social learning environment was the approach taken with heavy emphasis on empowering the students. The new learning facility delivered 13 flexible learning spaces, indoor and outdoor breakout spaces, two communication/ IT rooms as well as office and support function spaces for staff. Large learning spaces were created to ensure flexible use and cater for the ever-evolving curriculum; evoking a sense of permanence and stability in the new space - dynamic enough to cater for

THE BUILDING ECONOMIST - DECEMBER 2016 - 33

current students, whilst sufficiently providing for future students and the new technologies and learning techniques associated with them.

Layout ensures each learning space opens onto the social common, creating a flow towards a social space. This space provides a less formal learning environment that facilitates creativity and new ways of thinking.

Different learning spaces further broaden the opportunities for students to embrace their education whilst supporting each student’s array of ability, learning style and achievements. This holistic approach to learning reflects the values of Reverend Arthur Godolphin Guy Carleton Pentreath combined with the College’s future aspirations.

New elements to the building are modern but understated, supplementing the

building where necessary, whilst not overshadowing the original heritage features. Contemporary design celebrates the building’s rich history, paving the way for future students.

Whist the educational purposes of the design were paramount; environmentally sustainable design was also incorporated.

Energy efficiency was a goal for the design team, ensuring that heat was retained in winter and reflected in summer. Glazing and strategically positioned windows combined with a temperature controlled environment were also critical in ensuring students remain comfortable and can excel in their studies.

State-of-the-art technology was also integrated to control how the building ‘breathes’. Mechanically-controlled ventilation louvres provide fresh air at a

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controlled temperature, further creating a comfortable atmosphere and an optimal learning environment.

Maximising natural light was also imperative to Design. Each space is flooded with quality natural light, steering away from the artificial light sources which some classrooms depend on. Room proportions, layout and use of space all facilitated maximum light infiltration, adding to the students’ view and connection to the nature outside.

Calculated design used direct and indirect light for natural lighting options, achieving sustainability objectives whilst benefiting student health.

The integrated approach to daylight and design avoided additional costs associated with technology required to control temperature and lighting sources.

The team at Matthews Architects

achieved an impressive near perfect passive solar performance.

Extensive research has been conducted on the health benefits of natural light and the positive effects it has on productivity levels. As such, an environment was created that supports student learning as well as promoting a healthy state-of-mind and efficiency.

The revitalised Pentreath building further enhanced the students’ connection with nature by expanding the learning environment outside with extensive outdoor learning and breakout spaces.

These new areas bridged a relationship with the adjacent Caterer Oval, the proposed new Integrated Learning Centre and the Senior School precinct; giving students the opportunity to develop physical fitness and an alternative learning environment to the

traditional walls of a classroom.

Social experience is enhanced through the delivery of a tiered seating space along the adjacent embankment where students, staff, families and old scholars can gather. The tiered space incorporates precast seating and grassing into the landscape.

The wellbeing of students was always at the cornerstone of every decision the design team made. The team at Matthews Architects had a strong vision for the school which worked hand-inhand with the St Peter’s College’s values and aspirations. This alignment fulfilled all objectives, creating the ultimate facility to enable boys to flourish and reach their potential.

Initial Budget $10.95 m Final Cost $10.88 m Target Completion Date 15 January 2016 Actual Completion Date 9 December 2015 Date Started January 2015 Size 3,651 m2 (Refurbished area – 1,695 m2 GFA/New Extension – 1,956 m2 GFA) Location St Peter’s College, Adelaide, South Australia

THE BUILDING ECONOMIST - DECEMBER 2016 - 35

We embraced the challenge of working with St Peter’s College and Matthews Architects in developing robust cost estimates through multiple design options in order to meet the Brief and Budget. The challenge was met by all, with a successful commercial outcome for St Peter’s College, delivering a construction cost under $3,000/m2, with an architectural solution providing maximum use of functional space and maximum connection to its surrounding environment.

The commercial success of the project was cemented in the budget establishment phase, through an appreciation of the cost parameters around the client’s time, qualitative and quantitative targets, as well as the benchmarking of costs. This was continuous throughout the life of the project’s procurement, both pre and post building contract.

3 useful lesson learnt from this project, that can be applied on future projects for positive client outcomes: 1. Take the opportunity to assess and understand the risks associated with existing building and infrastructure assets prior to undertaking physical refurbishment work, particularly where risk of asbestos and hazardous material is present; 2. Ensure adequate cost and risk allowances are made at the establishment of the project budget

- to ensure a robust project budget moving into design phases; to ensure the Client Brief is met; and to avoid costly abortive work, lost time and negative impact on the project business case; 3. Understand which consultants and contractors in the marketplace “can deliver”, can share the stakeholder’s values and appreciate the project objectives; ensuring they remain energised throughout the entire project.

NAME: DAVID SCOTT, FAIQS TITLE: MANAGING DIRECTOR SA FIRM: DONALD CANT WATTS CORKE (SA) PTY LTD LOCATION: ADELAIDE, AUSTRALIA

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PROJECT

END OF YEAR SPOTLIGHT

Client Uniting Quantity Surveyor Altus Page Kirkland Engineers JHA Consulting, Medland Metropolis and Ashburn Francis Builder Superior Fire Solutions and WP Projects

UNITING FIRE SAFETY UPGRADE NSW and ACT, Australia

Uniting is the single largest provider of aged care services in NSW and the ACT and across Australia. Its impressive Residential Aged Care (RAC) portfolio covers four key areas - North Coast, Central Coast Hunter North Eastern (CCHNE), Sydney and West South. 21 facilities are located in Greater Western Sydney and Regional NSW. In 2012, ahead of new NSW Government legislation to mandate sprinkler systems in residential aged care facilities, Uniting engaged Altus Page Kirkland (APK) to provide full Project and Cost Management consultancy services for the retrofitting of sprinkler systems at 51 of its residential aged care facilities.

The planning, investigation and upgrade works were to be completed within a 3-year program as mandated in the NSW Government legislation (completion date of 1 March 2016) and to achieve adequate fire safety throughout the Uniting Residential Aged Care (RAC) portfolio.

A high standard of quality was achieved through innovative design solutions that adhered to BCA requirements and AS standards, and surface finishes (painted pipework to match existing wall / ceilings, concealed sprinkler installation or concealing pipework by boxing-in).

THE BUILDING ECONOMIST - DECEMBER 2016 - 37

I am fortunate to have been involved in the Uniting Fire Safety Upgrade Project from the early days of the project in 2013 through to the successful completion in 2016.

Throughout the project, we adopted open and transparent communication with the project team and contractors regarding expectations, while maintaining financial control. One of the lessons learnt during the design was in understanding site constraints when selecting the correct equipment for a facility. For example, selecting an electric pump over a diesel pump may include upgrades to ageing infrastructure and switch rooms, requiring a Surge Protection Device for compliance that could result in potential delays to the program and impact the budget. The management solutions adopted for similar projects going forward is for the design authority to assess if pumps works (or similar works) trigger an upgrade to the main switch board.

It was a big challenge for all project team members to deliver fire safety upgrades for some 3,000 residents. We not only met this objective by completing the program two weeks ahead of the mandated completion date, but also achieved an overall saving of 12.8% against the project budget. We achieved these outcomes by having a clear understanding of the project requirements from the early stages, and challenging the design and value management process to give the Client the most efficient design and value for money.

With a staged procurement approach and competitive tendering, benchmark pricing for infrastructure upgrade works was established early on. This information was used to confirm the project budget, cost plans and cash flow projections.

These objectives were achieved at all facilities and within the prescribed financial objectives.

The highly experienced project team achieved key project milestones through effective planning, procurement and implementation strategies, along with a tailored communication plan, which included enlisting the support of stakeholders across the various regions, and in maintaining flexibility in the program for early starts and late finishes without jeopardising the mandated completion date. Understanding the importance of working in live environments in peopleâ&#x20AC;&#x2122;s homes, maintaining usual business operations, and enlisting the support of key stakeholders was paramount to the success of

NAME: BEN NGUYEN, AIQS (AFFIL.) TITLE: QUANTITY SURVEYOR / PROJECT MANAGER SPECIALISM: AGED CARE, RESIDENTIAL FIRM: ALTUS PAGE KIRKLAND LOCATION: SYDNEY

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the project. The requirements and implications of planning and implementing new fire services in live environments was detailed and incorporated into the project documentation and procurement processes.

The Uniting Fire Safety Upgrade project was successfully completed two weeks ahead of the mandated completion date of 1 March 2016 and under the approved budget by 12.8%. A focus on service excellence and early stakeholder engagement enabled works to progress simultaneously across six operational regions with minimum impact to residents and minimal disruption to operations.

The Upgrade and the project team responsible for its successful delivery have garnered industry attention for their significant contribution to the safety

Target Completion Date 1 March 2016 Actual Completion Date 12 February 2016 Date Started 2012 Size 51 mandated facilities Location NSW and ACT, Australia

LEGAL CASE NOTES

A PERSPECTIVE ON 2017 WHERE IS AUSTRALIAN BUILDING AND CONSTRUCTION LAW HEADING?

With an ever-changing building environment, it comes as no surprise that the laws relating to building and construction are also experiencing continued development. A review of this year provides an insight into where building and construction law is heading and the implications that may very well be in store for those working in the industry

UNFAIR CONTRACTS New legislation will be commencing on 16 November 2016 which will work to prohibit unfair terms in Standard Form Contracts with small businesses. The effect of the new legislation is render unenforceable unfair terms within the contracts, as determined by a Court.

The reforms will seriously impact the construction industry. Existing Standard Form Contracts will need to be reviewed and possibly redrafted in order to avoid unenforceability.

For example, any Supply Agreements which may include unfair terms will need to be swiftly reviewed in order to avoid potential calamity in the future.

• Shipping contracts

The new legislation prohibiting unfair terms will apply to small business contracts whereby:

• Constitutions of companies, managed investment schemes or other kinds of bodies

1.

the Contract is for the supply of financial goods or services or for the sale or grant of an interest in land;

2. at least one of the parties is a “small business” (a business employing fewer than 20 employees); and 3. the upfront contract price payable under the Contract does not exceed $300,000 or $1 million for Contracts which are 12 months or longer.

Contracts that will be excluded from the reforms include:

(unless renewed on or after this date)

• Certain insurance contracts (e.g. car insurance) • Contracts in sectors exempted by the Minister – no sectors are currently exempt.

Terms that will be excluded from the reforms include: • Terms that define the main subject matter of the contract • Terms that set the upfront price payable • Terms that are required or expressly permitted by a law of the Commonwealth, or a state or a territory (e.g. permitted under the Franchising Code or

• Contracts entered into before 12 November 2016

THE BUILDING ECONOMIST - DECEMBER 2016 - 39

occurrence of specified events.

The case of Paciocco v ANZ [2016] HCA 28 has significantly altered the validity of terms included in contracts which involve liquidated damages. It was held that late payment fees charged by ANZ on its credit cards were not unenforceable penalties.

The issue that was decided in the case of Paciocco is one that will affect consumer financial services contracts, and the vast majority of contracts including but not limited to standard form consumer contracts and commercial contracts including construction contracts. another prescribed industry code).

The Australian Competition and Consumer Commission provides the following indicia of an unfair term: To be ‘unfair’, a term must: • cause a significant imbalance in the parties’ rights and obligations • not be reasonably necessary to protect the legitimate interests of the party advantaged by the term, and • cause financial or other detriment (such as delay) to a small business if it were relied on.

All participants within the construction industry are advised to review terms including, but not limited to, those related to termination as well as liquidated damages.

LIQUIDATED DAMAGES Liquidated damages are agreed damages which parties to a contract define in the formation of a contract. The damages are designed to provide certain definite compensation to an injured party upon a specific breach. Clauses within a contract which require the payment of money as a result of a breach of contract are unenforceable if they are determined to be a penalty rather than liquidated damages. There are two key indicators which will result in clause being held to be a penalty.

1.

Where the amount which is payable upon breach of contract is considered to be extravagant and unconscionable when compared to the estimated loss; and

2. Where the payment is a lump sum upon the

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The decision of the Court will operate to focus upon the interests of the party whom is seeking to uphold clauses which specifically related to liquidated damages and provides them with much greater scope for the justification of the existing clauses. The imposition of clauses relating to liquidated damages will therefore be less controversial and allow for those seeking to impose liquidated damages clauses to do so more readily.

It was first established by Lord Dunedin in Dunlop Pneumatic Tyre Company Limited v New Garage and Motor Company Limited [1915] AC 79, that a "penalty" is the payment of money stipulated in a contract in order to secure a party's performance of an obligation. The stipulation within the contract will only be regarded as enforceable if it represents a legitimate pre-estimate of loss and proportioned to the loss which has been suffered by the affected party.

Clauses which are held to relate to liquidated damages are regarded as critical provisions in commercial contracts. There is quite often extensive negotiation surrounding such clauses as they can have a profound effect if they are later relied upon. The law on liquidated damages is now largely settled however it is subject to regular challenges from those whom are seeking to avoid their contractual liabilities. Those seeking to do so regularly rely on the basis that the clauses represent a penalty rather than liquidated damages.

The effect of Paciocco will make it more difficult for those seeking to challenge such clauses as the scope of justification has been enhanced. It is imperative that both businesses and organizations understand the principles which have created the foundation for liquidated damages and penalties if they do expect to rely upon related clauses within commercial agreements. This decision represents a benefit for those who seek to rely on liquidated damages in their commercial agreements.

SNAPSHOT OF RECENT DEVELOPMENT IN CASE LAW Santos Limited v Fluor Australia Pty Ltd [2016] QSC 129 Consequence: The decision of the Queensland Supreme Court provides that there exists a heavy onus upon a party to prove it does not have to comply with contractual dispute resolution clauses. Douglas J of the Supreme Court held that dispute resolution procedures within contracts were enforceable and would be even if similar disputes could be resolved without the use of the dispute resolution clauses.

SSC Plenty Road Pty Ltd v Construction Engineering (Aust) Pty Ltd [2016] VSCA 119 It was confirmed by the Victorian Court of Appeal that mediation is not to be considered “method of resolving disputes” for the purpose of section 10A(3)(d)(ii) of the Building and Construction Industry Security of Payment Act 2002 (Vic). It was stated that ‘mediation is a facilitative process that does not necessarily lead to a binding outcome. It would be inconsistent with the wording of the legislation — which speaks of “resolving”, not “addressing”, disputes — to find that mediation was a method of resolving disputes.’

for the existence of an adjudicator’s determination’. It is unknown whether or not this case will be followed in the future however it may very well open up for review many future decisions of adjudicators.

QUANTITY SURVEYORS AND THEIR LIABILITIES The case of LM Investment Management Limited (In Liquidation) (Receivers appointed) v BMT & Assoc Pty Limited [2015] NSWSC 1902 awarded a developer damages for negligent quantity surveying and represents an issue that all quantity surveyors must be conscious of. The Defendant BMT & Assoc Pty Ltd (BMT) were found to be liable by the Supreme Court for the cost overruns relating to the project. The cost overruns had been approved by BMT and were ultimately found to be in excess of the true value of the works agreed by experts.

The Plaintiffs to the claim argued that the reports that had been prepared by BMT had vastly overvalued the work that had been done and had overvalued the necessary trades.

Those who wish to limit variations which can be incorporated in a payment claim should consider y including arbitration or expert determination into the dispute resolution clauses of the contract.

Probuild Constructions (Aust) Pty Ltd v Shade Systems Pty Ltd [2016] NSWSC 770 This decision of the New South Wales Supreme Court held that judicial review is available in order to quash an adjudicator’s determination for a non-jurisdictional error or law. Interestingly, this decision goes against the long-standing authority provided by the case of Brodyn Pty Ltd v Davenport which held that judicial intervention within adjudication determinations was only possible where there had been a breach of the ‘basic and essential requirements’ which had been ‘laid down

THE BUILDING ECONOMIST - DECEMBER 2016 - 41

The argument submitted by the Plaintiffs alleged that in overvaluing the aforementioned amounts, BMT had engaged in misleading and deceptive conduct (then, s 52 of the Trade Practices Act 1974 (Cth). In the alternative, the Plaintiff claims that the overvaluation provided by BMT represented a breach of the terms of the contract between BMT and the Plaintiff or a duty of care that was owed by BMT to the Plaintiff. Under both arguments, the Plaintiff claimed damages for the differences between the amounts which had been advanced and the amounts recommended by BMT. The basis for their argument was that they would not have advanced the additional amounts without the recommendations provided by BMT.

The Court gave judgment in favour of the Plaintiff comprising the amount of their claim and interest.

BMT were ordered to pay the full amount between the amount that had been paid by the Plaintiff and the amount experts agreed would equal the actual value of the works.

This case provides a timely reminder to quantity surveyors of their need to be both vigilant and thorough when contracted to undertake works and to remain aware of their obligations and requirements as set out in construction contracts.

Where a Quantity Surveyor carries out work he should BMT unsuccessfully argued the Defence of ensure that he carefully qualifies the results to ensure proportionate liability in an attempt to reduce their that he or she limits the liability whenever reasonable. potential liability to the Plaintiff. The Court repeated the following “In Australia, it is well established that where a lender well known principle advances money on the basis of a negligent valuation or before coming to their misleading or deceptive conduct, the lender is entitled to decision: recover the difference between what was lent and what

would have been lent on the true value of the property. If the transaction would not have proceeded at all, generally speaking, the in Australia, it is well established that where a lender advances money on the basis of a negligent valuation or misleading or deceptive conduct, the lender is entitled to recover the difference between what was lent and what would have been lent on the true value of the property. If the transaction would not have proceeded at all, generally speaking, the lender is entitled to recover the whole loss that it suffers from the transaction…”

This Legal Case Note has been brought to you by Doyles Construction Lawyers for further information or if you have any questions in relation to this article please visit http://www.doylesconstructionlawyers.com.au or contact doyles@doylesconstructionlawyers.com

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AIQS BOOKSHOP

ASMM 6th Edition

IN NOVEMBER 2014 THE BOARD OF THE AIQS APPROVED THE PUBLICATION OF A NEW AUSTRALIAN STANDARD METHOD OF MEASUREMENT TO BE KNOWN AS THE ASMM 6TH EDITION. THIS DECISION FOLLOWS THE PUBLICATION OF THE ASMM 5TH EDITION IN 1990.

A COMMITTEE OF THREE WAS FORMED WITH I, GARY MCDONALD AS CHAIR AND GAVIN BRADY AND MICHAEL VISCARIELLO PROVIDING VALUED SUPPORT. GARY MCDONALD, FAIQS

The process was not a simple one however, we did have the advantage of and acknowledge the work previously done by Stuart Beavis and his team a few years ago which unfortunately did not result in a new publication at that time.

I wish to acknowledge the part played by Mr Jeff Poultney of the Master Builders Queensland who on behalf of the Master Builders Australia reviewed and endorsed the amendments proposed in the new ASMM 6.

First item on the agenda was to ensure that we had the correct allocation of the Trades.

A review of the Trades led to the separation of existing sections into a number of independent Trade Sections and the introduction of two new Trades, Facades and Transportation Services.

Whilst the fundamental methodology of measurement has generally not changed there are number of changes that need to be recognised.

Rather than adding random items into Metalwork when they did not seem to fit anywhere else, we have introduced Clause 2.4 within the ‘Introduction and Rules’ which allows the QS the opportunity to add and name a new Trade Section to suit a particular item or scope of work which the QS does not think fits within the existing Trade Sections.

In the Groundworks Trade we have introduced the requirement to measure backfill with previously excavated

materials and the requirement to include an item for the disposal of surplus excavated materials.

Structural Trades previously all included under Section 6 of ASMM 5 have been separated into individual trades sections which is more in line with the current practice of having different (sub)Contractors completing the various sections of the works.

The bane of our existence as Quantity Surveyors was the measurement of attached plates and connections within the Structural Steel Trade Section. This has now been replaced` with an “Item” as the differing steelworkers generally price these items as a percentage of the gross tonnage of the main steelwork. It was felt that the effort to measure these items in detail was a waste of time and effort.

The Metalwork Trade had become the dumping lace for items not fitting in elsewhere and the committee felt that by rationalising the Metalwork trade and moving the proprietary items into the new Furniture Fittings and Equipment Trade it would better reflect the type of work to be undertaken by our Metalworkers and the “Off the Shelf” Items would be better placed in the new trade section.

Similarly, the committee felt that the removal of the Proprietary Items from the Joinery Trade would also be better reflective of these works. To facilitate the removal of the Proprietary Items the new Trade Section for Furniture Fittings and Equipment was created to capture all

metal and joinery proprietary items.

The Woodwork trade section within the ASMM 5 has been removed and replaced with the Carpentry Trade Section to better reflect the nature of the works included in the Trade Section.

With the widespread practice of measuring composite partitions rather than measuring the frame and linings separately, we introduced a set of rules in the Partitions Trade Section for measuring Composite Partitions, Acoustic Partitions and Fire Rated Partitions.

One of the most significant changes between the ASMM 5 and ASMM 6 is the introduction of the Façade Trade Section. This is designed to account for the complexity of new façade systems that have come into the market in recent years. It also provides a methodology for identifying and accounting for additional structural framing / supports that are required to suit the particular façade system. It introduces a requirement to measure support framing in2 where it has not been fully documented. This is in order to ensure that the contractors allow for the additional framing to suit the façade system (even when not fully documented).

In recent years the lack of detail of the secondary structural supports to the façade systems has resulted in significant claims for variation against the BQ. To better reflect the specialisation of trades we have separated the Finishes Trade in the ASMM 5 into three new Trades, “Applied Finishes, Render and

THE BUILDING ECONOMIST - DECEMBER 2016 - 43

Textured Finishes”, “Tiling, Slab and Paving” and “Carpet and Resilient Finishes”.

The introduction of the Transportation Trade section reflects current practice to include these items separately from the Mechanical Services Trade section.

Finally, the external works trade section has been rationalised to allow for the inclusion of base and sub-base materials (not exceeding 250 thick) within the items for paving where the paving is <or = to 150 thick. The measurement of thickening / foundation beams to paving shall be measured in meters.

The ASMM 6th Edition went on sale in March 2016 and the Queensland Chapter of the AIQS Officially “launched” the new 6th Edition (reprint) at an event hosted by AECOM in their Fortitude Valley Offices.

Set out below are further details of the changes made:

CHANGES INTRODUCTION, GENERAL RULES

• Item 13 shall become Item 12.2.

• Add new Item 2.4 “Work which is not covered by any of the existing trade sections shall be measured separately under a separate new trade, with a new trade heading relevant to the scope of works to be measured herein”.

CONCRETE

FINISHES

STRUCTURAL STEEL

• Applied Finishes renamed Applied Finishes, Render and Textured Finishes.

• Separate Concrete, Formwork, Reinforcing Steel, Pre Cast Concrete, Pre Stressing and Tanking and Waterproof Membranes into separate Trades.

• Attached plates and Connection – Measure as “Item” rather than in “t”.

Added optional requirement to state number where possible.

METALWORK

• Delete Metal furniture – refer Furniture Fittings and Equipment.

• Separate Tiling and Paving from In-situ Applied finishes and from Carpet and Resilient Finishes.

FURNITURE

• Delete Furniture and replace with Furniture, Fittings and Equipment.

FACADES

• Create new “Façades” section.

EXTERIOR ELEMENTS

WOODWORKS

• Base and sub-base materials included in item for paving where paving less than 250 thick.

PARTITIONS

• External Elements - The measurement of external concrete slabs less than 150 thick in m2 as a composite item including sub base and hardcore where these are below 250 thick as they are measured in m2 in the Excavation Trade.

• Section 34 and 35 transferred to Carpentry.

• Include girts to walls, include rules for measurement of composite partitions, fire partitions and acoustic partitions.

• Item in both sections amended to sealing at floor, wall and ceiling junctions.

• Amended to include Timber Framed Composite Partitions and noted in Carpentry that the timber framing may be measured as Composite Partitions in accordance with the Partitions Trade.

WINDOWS

• Signage added.

• Line Marking and Road Symbols added.

MECHANICAL SERVICES

• Transportation Services – Separated from Mechanical Services Section into a new Section.

• Curtain walls transferred to Facades.

GROUND WORKS

• Refer Section 4.1 Add items 6 and 7 for backfilling with previously excavated materials and disposal of excess previously excavated materials.

• Refer Filling and Hardcore Section 4.2.

Include an item 5 for measurement of filling to trenches in Section 4.2 In addition, for clarity an item has been included in Section 4.1.6 For Backfilling to Trenches.

44 - DECEMBER 2016 - THE BUILDING ECONOMIST

*NOTE This ASMM 6th Edition DOES NOT take into account BIM or BIM Measurement which should be included within the next revision of the ASMM once a universal library of input codes has been agreed with the Institute of Architects and the Institution of Engineers.

To purchase your copy of the ASMM 6th Edition visit the AIQS Books shop here: www.aiqs.com.au To update your ‘Measurement of Building Works’ knowledge and skills visit www.aiqsacademy.com.au

SOCIALS

ASMM 6TH LAUNCH & WHATâ&#x20AC;&#x2122;S NEW

Brisbane, Queensland 13th October 2016

UAE BOWLING TOURNAMENT 2016

Al Mamzar, Dubai 4th November 2016

THE BUILDING ECONOMIST - DECEMBER 2016 - 45

VICTORIAN CHAPTER ANNUAL DINNER

Brisbane, Queensland 13th October 2016

46 - DECEMBER 2016 - THE BUILDING ECONOMIST

10TH ICEC WORLD CONGRESS Rio De Janeiro, Brazil 9th 12th October 2016

The 10th ICEC World Congress 2016 was held in Rio de Janeiro on the 9-12th October, with the AIQS President, CEO and Education & Events Manager in attendance.

The successful event promoted techniques and technologies, concepts and parameters of Cost Engineering, integrating businesses and professionals active in the sector, as well as public agencies, unions, associations and students, through lectures, seminars and discussions about current and controversial themes.

AIQS will host the ICEC-PAQS Conference in 2018

If you have held or attended an AIQS event in your area and want to be featured in the Social Pages please send the event details and photographs to marketing@aiqs.com.au

THE BUILDING ECONOMIST - DECEMBER 2016 - 47

BCI

BUILDING COST INDEX THE BUILDING COST INDEX IS PUBLISHED IN THE PRINT VERSION OF THE BUILDING ECONOMIST. IT CONTAINS DATA THAT CAN BE USED AS A PREDICTOR FOR THE ESTIMATED TIMES FOR DESIGN AND CONSTRUCTION AND INCLUDES A SUMMARY OF THE PAST, PRESENT AND ESTIMATED FUTURE CONSTRUCTION COSTS. 48- DECEMBER 2016 - THE BUILDING ECONOMIST

BUILDING COST I N DEX DECEMBER 2016 THE BUILDING ECONOMIST - DECEMBER 2016 - 49