The Building Economist - June 2016 - The Green Issue

THE GREEN ISSUE

FEATURING WHAT’S THE ‘NEXT BIG THING’ IN SUSTAINABILITY? THE INFLUENCE OF TIME IN SUSTAINABILITY

LOW CARBON, HIGH PERFORMANCE

JUNE 2016

21

12 IN SUSTAINABILITY

This paper develops a framework to evaluate an integrated long life, loose fit, low energy strategy capable of delivering a favourable outcome for residential green roof applications.

08

So what is the ‘next big thing’ in sustainability for Australia? Chief Executive Officer of the Green Building Council Romily Madew explains.

02 07 34 38 REGULARS 46 48 JUN 2016 CONTENTS

THE ASBEC REPORT

Sustainable building features are sometimes seen as extra costs – optional add-ons that clients might choose, based on their personal tastes or beliefs.

But increasingly, the evidence shows that the cost of not including low carbon features has negative implications for the eventual owners and occupants of a building.

Managing Editor Stephanie Ifill Graphic Designer Guilherme Santos CEO Grant Warner

IN SUBSTAINABILITY

Australia has been recognised as the world’s green leader by the Global Real Estate Sustainability Benchmark (GRESB) for five years in a row. The Dow Jones Sustainability Index is overrun with Australian companies.

And the ‘big end of town’ is committed to portfolio-wide Green Star certification, with Frasers Property Australia alone certifying 1.3 million square metres of space in the last 12 months.

INSIGHT THE INFLUENCE OF TIME

LOW CARBON, HIGH PERFORMANCE

GREEN STAR WHAT’S THE ‘NEXT BIG THING’

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

FROM THE CEO

PEOPLE

WORKPLACE

EVENTS & SOCIAL

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for the opinions express by any third parties involved in the development of the Building Economist Magazine.

THE BUILDING ECONOMIST - JUNE 2016 - 1

SNAPSHOT INDUSTRY NEWS

$250 MILLION FOR ENERGY EFFICIENT COMMUNITY HOUSING The Australian Government’s better cities commitment is being given a boost with a new $250 million program which will help provide affordable energy efficient housing to low income earners.

The new program will help drive the construction of market-leading energy efficient community housing in 2016, contributing to the greening of Australia’s cities and built environment.

The Australian Government had directed the Clean Energy Finance Corporation (CEFC) to focus on cities and the built environment under its new Investment Mandate, which also includes financing emerging and innovative renewable energy technologies as well as energy efficiency.

The CEFC expects this new $250 million Community Housing Program will contribute to the construction of as many as 1,000 new energy efficient homes Australia-wide, which is great news for our cities and for families and low income Australians requiring affordable housing.

This is a very practical way to drive down household energy costs, which can make a real and positive difference for low income families.

By financing the development of homes which have the latest energy efficient measures built in, we can lower their long term energy needs and also minimise their impact on the environment.

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With this finance, Australia’s Community Housing Providers will be able to invest in new buildings which use more energy efficient building materials in their construction.

Giving Community Housing Providers access to tailored finance that will allow them to invest for the long term in energy efficiency.

Energy efficient homes could feature double glazing on their windows, or include high quality insulation and ventilation to reduce heating and cooling needs.

These are all important ways to reduce the energy demands of occupants, which has an environment benefit as well as lowering living costs.

SNAPSHOT INDUSTRY NEWS

SUSTAINABLE SKYSCRAPERS Sustainable architecture is vital to green urban planning and building cities of the future.

Promoting green or energy-efficient buildings is integral to the surrounding natural environment.

High-rise buildings, especially commercial buildings consume a significant amount of energy.

Across the globe, developers are promoting sustainable growth by incorporating topof-the line energy efficient technology, solar powered systems, wind turbines and innovative structural techniques that allow natural ventilation.

It has been reported that buildings contribute over 30% of total global greenhouse gas (GHG) emissions, chiefly through the use of fossil fuels during their operational phase.

To mitigate GHG emissions from buildings, it has become vital to introduce climate-smart infrastructure projects.

The most recent addition to the list of sustainable skyscrapers is the recently opened Shanghai Tower that holds the coveted title of being the world’s second tallest building. Apart from its height, it is also known for its unique design that enables energy savings of 21-22 percent over a skyscraper of comparable size.

SIX STARS A 1,000sqm office building, 69 Robertson Street, in Brisbane’s Fortitude Valley received the first 6 Star Green Star - Design and As Built v1.1 certified rating.

The new Floths office building which also meets the Australian Sustainable Built Environment Council’s (ASBEC) zero carbon building standard, is fitted with the latest daylight controlled direct- indirect LED lighting systems.

High indoor air quality is assured with a 50 percent increase in outside air being delivered to occupants via variable air volume systems

that are demand controlled in response to zoned carbon dioxide sensors. Heat recovery variable refrigerant flow air conditioning systems are literally able to move heating or cooling from one part of the building to another as required.

The roof rainwater for the building is being collected for green wall establishment and for toilet and urinal flushing.

The constrained zero lot line building includes green trellis walls with drought tolerant climbing vines growing up the external faces of the central light well and rear decks. A roof-mounted solar photovoltaic system achieves a further 13 per cent reduction, also equivalent to offsetting 28 percent of the building’s final operational energy.

THE BUILDING ECONOMIST - JUNE 2016 - 3

SNAPSHOT AIQS NEWS

THE MOST AMBITIOUS SCHOOL BUILDING PROJECT IN VICTORIAN HISTORY The Australian Institute of Quantity Surveyors (AIQS) congratulates the Victorian Government for its investment in the future growth and development of education infrastructure in Victoria which will underpin future innovation across the State.

To safe guard the $1.1b investment and ensure both the Victorian Government and the people of Victoria are getting value for money in this initiative, the AIQS recommends the government engage AIQS professionally qualified quantity surveyors from the outset of these projects to ensure costs are controlled and managed.

The AIQS Energy efficiency bundle gives quantity surveyors the topics needed to better understand the growing world of Energy Efficiency and Sustainability, in terms of new technology, and also how to comply with the ever changing laws and regulations in this area.

The AIQS Energy efficiency bundle takes you through ways in which a home can be made comfortable to live in without the use of heaters or coolers, how to take advantage of the natural climate and how to select the most effective type of insulation for your project.

This Bundle consists of 6 individual CPD topics which include glazing, thermal mass, insulation, comfort, thermal performance and ventilation and is worth 12 CPD points.

For more information and to purchase the AIQS Energy efficiency bundle visit www.aiqs.com.au Non-Members: RRP $450; now $375 as bundle Members: RRP $390; now $325 as bundle

AIQS quantity surveyors, by working side by side with the Victorian Government, will control costs, minimise risks, and provide certainty to ensure potential cost overruns experienced on some school projects undertaken during the BER are not repeated.

Part of this cost control process is ensuring the procurement of contractors to deliver these projects is done in a manner to provide ‘value for money’ and not simply flood the market with projects.

With rates for education projects ranging from $1,500/m2 to $4,500/m2 dependent on the scale of the work required, it is important that the 23 new schools and upgrades to 147 schools have this professional quantity surveyor advice from the initiation of each project. This will ensure that each project has a skilled professional as part of the team to assist in identifying and minimising risks associated with time, cost, quality, environment and safety.

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SECURE YOUR IVA GALA DINNER TICKETS AT THE EARLY BIRD PRICE! Registrations for the 2016 Infinite Value Awards Gala Dinner are now open!

The Infinite Value Awards winners are announced and celebrated at the Infinite Value Awards Gala Dinner which will take place at the Four Points

by Sheraton Sydney, Darling Harbour on Thursday 27 October 2016.

The Four Points by Sheraton Sydney, has recently undergone a $200 million

re-development and provides an ideal location to showcase these awards with floor-to-ceiling glass windows overlooking the Darling Harbour precinct.

Visit www.infinitevalueawards.com

by Wednesday 31st August to secure and book your early bird IVA Gala Dinner tickets!

2016 INFINITE VALUE AWARDS PARTNERSHIPS IN CONSTRUCTION Do you work with someone who goes above and beyond in their daily job?

Have you worked on a project that has made significant impact to the community or built environment?

This is your opportunity to highlight the successes of your industry by submitting a nomination for one of the 12 Infinite Value Awards categories. Nominate an Employee, a CoWorker or a Project for an Infinite Value Award!

For more information and to make your 2016 nomination visit www.infinitevalueawards.com.

Nominations close 30th July.

Future Leader Award

Lifetime Contribution Award

Women in Construction Award

Sub-contractor Award

Architectural Excellence Award

Government Project Award

Quantity Surveying Advocacy Award

Research and Teaching Award

Indigenous Award

Leasing Agent Award

Engineering Excellence Award

Sustainable / Green Project Award

AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS

IVA Handout_A List_1pV2.indd 1

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FROM THE CEO

THE GREEN ISSUE

On 12th December 2015 history was made in Paris when 195 countries agreed to work together to substantially curb global warming by limiting it to a maximum of 2°C, possibly 1.5°C, and phase out fossil fuels by the end of the 21st century.

More than ever before, governments all over the world are now constrained to find costeffective ways to curb pollution, with every sector and every economic actor coming under close scrutiny. The buildings sector has one of the highest carbon footprints – it currently contributes to 30% of global annual greenhouse gas (GHG) emissions and consumes around 40% of the world’s energy. At the same time, the sector’s mitigation potential is huge. Achieving this potential will be critical, but it requires significant investments to be made.

Australian Sustainable Built Environment Council (ASBEC) modelling indicates that without further action, ‘business-as-usual’ improvements will lead to emissions from buildings dropping slightly (7 per cent) by 2050.

BASED ON CURRENT KNOWN TECHNOLOGIES, COSTEFFECTIVE ENERGY EFFICIENCY ACTIONS ACROSS THE SECTOR COULD DELIVER A 23 PER CENT REDUCTION IN EMISSIONS BY 2030, AND 55 PER CENT BY 2050 Based on current known technologies, costeffective energy efficiency actions across the sector could deliver a 23 per cent reduction in emissions by 2030, and 55 per cent by 2050.

Non-electric fuels can be nearly eliminated by switching to electric alternatives, which is necessary to pave the way for space heating, water heating and cooking (currently fuelled in large part by gas) to be powered by zero emissions electricity.

Australia’s current emissions reduction target is a 26 to 28 per cent reduction in emissions below 2005 levels by 2030. According to ASBEC, buildings could contribute up to one tenth of this target through implementation of energy efficiency measures, and more than a quarter of the national emissions target with high levels of uptake of distributed energy.

Professor Alistair Sproul of the CRC for Low Carbon Living has identified that five per cent of Australia’s electricity is produced by rooftop solar, but most of these systems are on residential rooftops, presenting an enormous opportunity to increase the use of solar PV through the commercial building and infrastructure sectors.

Peak demand in commercial buildings occurs in the middle of the day, coinciding with solar PV output, providing an additional incentive for developers and building owners to consider implementing new technologies.

Improving the energy performance of buildings is more than just saving energy or reducing energy bills. The quality of our buildings increasingly determines our quality of life and Australia’s attractiveness as a place to live and work.

Buildings that are well-designed and constructed for energy efficiency are also more comfortable, quieter, and tend to have better indoor air quality.

These features also help boost resilience to the adverse effects of extreme weather.

A timely reminder that nominations are now open for the Infinite Value Awards Sustainable / Green Project Award. Just visit the website www. infinitevalueawards.com

Grant Warner

CEO The Australian Institute of Quantity Surveyors

THE BUILDING ECONOMIST - JUNE 2016 - 7

REPORT

THE COST OF NOT EMBRACING AUSTRALIA’S LOW CARBON BUILDING FUTURE Sustainable building features are sometimes seen as extra costs – optional add-ons that clients might choose, based on their personal tastes or beliefs.

But increasingly, the evidence shows that the cost of not including low carbon features has negative implications for the eventual owners and occupants of a building.

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Of course, the global cost of failing to reduce emissions is well known: climate change. Australia has signed up to meet ambitious new emissions reductions targets at the recent Paris climate meeting and it’s obvious that the building sector will be a big part of achieving these.

AUSTRALIA HAS SIGNED UP TO MEET AMBITIOUS NEW EMISSIONS REDUCTIONS TARGETS AT THE RECENT PARIS CLIMATE MEETING AND IT’S OBVIOUS THAT THE BUILDING SECTOR WILL BE A BIG PART OF ACHIEVING THESE The Australian Sustainable Built Environment Council (ASBEC) commissioned detailed economic modelling from ClimateWorks Australia to work out exactly what the shift to a low carbon building sector would look like.

The result is the new Low Carbon, High Performance report.

Property Council of Australia Chief Executive and chair of the ASBEC’s Energy Efficiency and Emissions Task Group Ken Morrison said the report was a blueprint for government action.

“Major emissions reduction gains can be made with the property industry, but it requires a focused plan that includes regulation, strong incentives, energy market reform and market information to support transformation.”

For a start, it could save Australia up to $20 billion in reduced energy costs and greater efficiency.

The technologies involved are already being used by market leaders in Australia.

For example, Grocon’s Pixel building in Melbourne is Australia’s first zero net emissions office building. It boasts a vacuum toilet system, high efficiency lighting with daylight control, and solar PV and wind turbines. The building also generates more energy than it uses, allowing it to sell energy back to the grid.

For the residential sector, national science agency CSIRO has created an entire demonstration house designed to scientifically cost out energy efficiency features. The Australian Zero Emission House Project’s demonstration model includes a 6 kW solar panel array and a home energy management system. All living areas face north and the building has air-tight, passive design including extensive insulation and double glazing.

Testing with a resident family showed that the house saved the occupants $2,000-$3,000 every year in energy bills.

The cost? The entire house, including all sustainable trimmings, can be built for around $270,000.

Low Carbon, High Performance shows how technologies and practices like these could generate a $2 return for every $1 invested. Energy savings, from buildings that are cheaper to light, heat and cool, are a major component, but another is more productive buildings. Research shows that many of the features that lower a building’s emissions and energy costs (natural light, temperature control and so on) also make it a better place to live, work, and learn.

“When we’re talking about the built environment, we’re talking about literally millions of individual home owners as well as thousands of businesses across the property supply chain. That is a level of complexity which requires a nuanced approach.”

The report identifies the complexity of the building sector as a key obstacle to action.

There are huge numbers of stakeholders, including millions of homeowners and thousands of companies, across the building supply chain. That means that governments at all levels are a crucial part of Australia’s low carbon building future.

The findings make interesting reading.

According to the report, five key policies

can make the transition happen. First, the Federal government needs to create a national plan to achieve zero emission buildings by 2050. Next, we need strong mandatory minimum standards for buildings, equipment and appliances, and establishment of a forward trajectory for future standards.

Targeted incentives and programs can support higher performance in the short­to­ medium term. For example, governments can use their considerable power as purchasers, along with financial incentives for building owners and tenants, to make emissions reducing changes.

GOVERNMENTS CAN USE THEIR CONSIDERABLE POWER AS PURCHASERS, ALONG WITH FINANCIAL INCENTIVES FOR BUILDING OWNERS AND TENANTS, TO MAKE EMISSIONS REDUCING CHANGES Our energy market needs reform to support the implementation of cost­ effective energy efficiency and distributed energy improvements, by removing energy market barriers and distortions.

We also need resource appropriate energy data, information, research and education measures.

The opportunity cost of not acting quickly is stark. Every new building that lacks energy efficiency measures not only locks in decades worth of climate changing emissions, but poor performance and higher costs. Just five years of delay in implementing these policy asks could lead to $24 billion in wasted energy costs. We can’t afford to waste time.

It’s clear that Australians shouldn’t be asking if we can afford to move to a low carbon building sector. We should be asking if we can afford not to do so.

THE BUILDING ECONOMIST - JUNE 2016 - 9

LOW CARBON, HIGH PERFORMANCE Key findings of the ASBEC Low Carbon, High Performance report, authored by ClimateWorks Australia.

FIVE POLICY SOLUTIONS ASBEC is calling for the establishment of a national plan to coordinate policy development and implementation, with a suite of policies across five themes:

POLICY SOLUTION 1 - CREATE NATIONAL PLAN TOWARDS 2050 NET ZERO EMISSIONS BUILDINGS AND IMPROVE GOVERNANCE A national plan with supporting policy frameworks and governance arrangements, including long-term and interim targets, clear responsibility at a Ministerial level, coordination of action across different levels of government and different government departments and agencies and public reporting requirements;

POLICY SOLUTION 2 - SET STRONG MANDATORY MINIMUM STANDARDS Mandatory minimum standards for buildings, equipment and appliances with a future trajectory aligned with the long-term goal of net zero emissions;

POLICY SOLUTION 3 - TARGETED INCENTIVES AND PROGRAMS Targeted incentives and programs to motivate and support higher performance in the short- to medium-term, including incentives, the use of government market power and targeted programs and support.

POLICY SOLUTION 4 - ENERGY MARKET REFORMS Energy market reforms to ensure that the energy market supports roll-out of cost-effective energy efficiency and distributed energy improvements.

POLICY SOLUTION 5 - IMPROVE ENERGY DATA, INFORMATION, RESEARCH, EDUCATION AND TRAINING A range of supporting data, information, training and education measures to enable informed consumer choice, and support innovation, commercialisation and deployment of new technologies and business models.

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FIVE YEAR IMPLEMENTATION TIMELINE

2016 2017 2018 2019 2020

- Develop zero emission buildings plan with

targets - Influence development of NEPP measures - Design new targeted incentives and other measures (e.g. green depreciation) - Immediate implementation of ready policy mechanisms (e.g. government asset upgrade programs, sectoral pathways)

- Design National Construction Code upgrade - Establish a forward trajectory for minimum standards - Commence new measures

- Establish National Energy Efficiency Authority - First report on progress towards targets

OPPORTUNITIES TO REDUCE EMISSIONS IN THE BUILT ENVIRONMENT

01 02 03

Energy efficiency: Improvements in the efficiency of appliances and equipment, and improvements to the thermal efficiency of the ‘shell’ or ‘envelope’ of the building.

Fuel switching: Switching appliances and equipment that use gas, wood or other fuels to electric alternatives.

Zero emissions electricity: Deployment of zero emissions electricity, including: Onsite: Installation by building owners of on-site distributed energy systems such as solar PV and, increasingly, battery storage systems;

UN stocktake of activities and progress

Offsite: Purchase by building owners or occupants of off-site low carbon electricity, for example through a power purchase agreement or through GreenPower;

- National Construction Code upgrade - Second report on progress of national plan

Grid: Decarbonisation of the electricity grid through replacement of fossil fuel power stations with large-scale centralised renewable energy.

- NEPP review and third report on progress towards targets - Introduce stronger measures if required (e.g. minimum standards for existing buildings) UNFCCC Climate Change Conference

THE BUILDING ECONOMIST - JUNE 2016 - 11

Park in the sky One central park building, Sydney, Australia.

5 Star Green Star - Retail centre design v1

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GREEN STAR

WHAT’S THE ‘NEXT BIG THING’ IN SUSTAINABILITY? Romilly Madew, Chief Executive Officer Green Building Council of Australia

MOST OF US CAN RECALL THE EARLY GREEN BEACONS THAT SENT SHOCKWAVES THROUGH THE SECTOR. THINK 30 THE BOND IN SYDNEY, WITH AUSTRALIA’S FIRST APPLICATION OF CHILLED BEAM TECHNOLOGY, OR COUNCIL HOUSE 2 IN MELBOURNE, WITH ITS ICONIC YELLOW WIND TURBINES. WE REMEMBER THESE BUILDINGS BECAUSE, AT THE TIME, THEY WERE RARE GEMS. BUT GREEN BUILDING, ONCE A DISRUPTIVE FORCE IN THE INDUSTRY, IS NOW BUSINESS AS USUAL.

More than 1,050 projects around Australia have achieved Green Star ratings. Thirty per cent of our office workforce – a massive 600,000 people – now operate from high performance, Green Star-rated buildings.

Around 5,000 people now live in Green Star-rated apartments. Up to 20,000 students learn in Green Star-certified schools. And Green Star – Communities projects certified in the last year alone will be home to 100,000 people.

Meanwhile, Australia has been recognised as the world’s green leader by the Global Real Estate Sustainability Benchmark (GRESB) for five years in a row. The Dow Jones Sustainability Index is overrun with Australian companies.

And the ‘big end of town’ is committed to

THE BUILDING ECONOMIST - JUNE 2016 - 13

portfolio-wide Green Star certification, with Frasers Property Australia alone certifying 1.3 million square metres of space in the last 12 months.

New finance mechanisms such as green bonds are reshaping a market that has set its sights on long-term value. And the latest World Green Building Trends report, released in February, finds the green building continues to grow at an ever-escalating pace – doubling every three years.

So, in an industry always looking for that first mover advantage, what are the disruptive forces shaking things up again?

As we chalk up our hottest global temperatures on record, we must move from ‘low carbon’ to ‘no carbon’. Our buildings continue to present some of the cheapest and fastest opportunities to reduce our emissions – and we can do this with proven and readily-available technologies. The GBCA is working on a new ‘net zero’ label with the NABERS team to recognise buildings, fitouts and communities that are energy, carbon or water neutral.

As once avant garde sustainability solutions become commonplace, the industry is also looking to the next big thing in technology. Morgan & Stanley predicts that more than one million households will be using battery storage by 2020, and the industry is embracing this technology with gusto.

For example, Lendlease and West Australia’s LandCorp are pioneering a major community-level battery storage program that could change the way that residential communities source energy.

The pilot project at Alkimos Beach in north Perth, the first 6 Star Green Star – Communities project in the country, will include 1.1MWh of lithium ion battery storage that will service more than 100 homes with rooftop solar panels.

‘Wellness’ is another trend reshaping the industry. Green Star kicked off the

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AS WE CHALK UP OUR HOTTEST GLOBAL TEMPERATURES ON RECORD, WE MUST MOVE FROM ‘LOW CARBON’ TO ‘NO CARBON

TERRACES ON SIXTH, ADELAIDE

FROM OFFICES THROUGH TO RETAIL OUTLETS AND RESIDENTIAL DEVELOPMENTS, EVERY BUILDING AT RENEWAL SA’S BOWDEN DEVELOPMENT IN ADELAIDE MUST MEET 5 STAR GREEN STAR ‘AUSTRALIAN EXCELLENCE’ SUSTAINABILITY BENCHMARKS. Rivergum Homes’ Terraces on Sixth, comprising three stunning sixstorey terraces, is just one inspiring example. The first terraces in Australia to receive a 5 Star Green Star rating were designed to be energy-efficient. North-facing orientation, cross-ventilation and highperformance glazing control heat gain and loss, while maximising natural light.

All water fixtures and fittings were selected to minimise water consumption, and are complemented by 2,050-litre rainwater tanks installed in the grounds of each dwelling. A third pipe system provides recycled water to all toilets. A 1.5kW solar photovoltaic panel system generates renewable energy for each dwelling. The unique façade is constructed with recycled bricks and lets in natural light while still maintaining visual privacy and blockage from excess sunlight.

“We wanted to ensure that what we did was environmentally friendly while, at the same time, enhancing the comfort levels for occupants,” says Rivergum Homes’ General Manager – Property, Robert Alvaro.

Achieving a Green Star rating “demanded a fundamental shift in thinking from the traditional approach, not to mention the acquisition of new and greener skills among our designers,” Alvaro adds.

conversation by rewarding design and construction choices that enhance indoor environment quality and minimise the use of hazardous chemicals, for example. But what happens if the cleaners use harmful products, or the office café serves unhealthy food?

Organisations are looking at everything from workplace fitness programs to how lighting affects circadian rhythms to help them capitalise on their most important asset – people.

Our understanding of ‘resilience’ is also changing. We can’t adapt to climate change without thinking about how we access fresh food and water, limit urban sprawl, create diverse employment and foster social equity. Melbourne and Sydney already have chief resilience officers – and when both cities are expected to double in size over the next 15 years, it’s easy to understand why.

The 40-odd Green Star – Communities projects currently working with us are creating local jobs, ensuring people of all incomes can live in the same community, promoting social inclusion, and encouraging healthy and active living.

These are all factors that make a resilient community.

Social sustainability is also increasingly in the spotlight as property companies recognise their obligation and opportunity to influence the communities within which they operate. The Homes 4 Homes project, for example, encourages home buyers to donate 0.1 per cent of their sale price to fund social housing for homeless people. This is a simple but effective response that aggregates the building industry’s purchasing power to deliver meaningful social change.

5 Star Green Star Multi Unit Residential Design v1

Sustainability has also moved beyond compliance and is now seen as a strategy for managing risk. Investors with a long-term view – banks, superannuation funds and governments to name a few – are analysing their investments against factors such as climate change, resource depletion,

THE BUILDING ECONOMIST - JUNE 2016 - 15

AROUND 5,000 PEOPLE NOW LIVE IN GREEN STAR-RATED APARTMENTS. UP TO 20,000 STUDENTS LEARN IN GREEN STARCERTIFIED SCHOOLS ecosystem destruction and human exploitation. Speaking at the Green Cities 2016 conference in May, managing director and CEO of the Australian Institute of Company Directors, John Brogden, said that 97 per cent of ASX100 companies were already engaged in some level of sustainability reporting, and that this would be further driven by investors who were “increasingly seeking greater transparency so they could assess investment risk”.

Perhaps the biggest shift in thinking arises from our broader sense of purpose. The industry now understands that we are doing more than designing and creating environmental high performance buildings. We are connecting people with fabulous places, creating productive work and learning spaces, boosting health and resilience, and creating community. We are no longer looking at our buildings in isolation, but understanding them as part of an interconnected whole.

So, what does all this mean for quantity surveyors? It’s clear that sustainability is not a fad or a fashion – it’s an everevolving force that is reshaping the way we think about buildings, communities and cities.

And as sustainability continues to evolve, the roles of building industry professionals must change with it. This demands a new level of collaboration across the entire supply chain, a willingness to step outside business-asusual, and a commitment to big picture thinking to deliver even bigger results.

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REGIONAL RAIL LINK, VICTORIA THE UPGRADES TO FOOTSCRAY, WEST FOOTSCRAY AND SUNSHINE RAILWAY STATIONS AND THE NEW RAILWAY STATIONS IN WYNDHAM VALE AND TARNEIT ARE THE FIRST GREEN STAR-RATED RAILWAY STATIONS IN AUSTRALIA. Extensive natural light reduces the train stations’ reliance on electric lighting, while more than 100 solar panels help to provide power and heat water in each station. Energy-efficient LEDs in car parks, forecourts, uncovered patron areas and internal areas improves safety, with automatic sensors switching off lighting and air-conditioning systems when they are not required.

Each train station uses energy and water meters to monitor consumption. A rainwater harvesting system collects rainwater run-off from the roof which is used to flush station toilets and wash platforms, and water-efficient taps, urinals and toilets further reduce the reliance on potable water. Low water-use and native plant species have been planted in the garden beds around the station.

The results are impressive. For example, West Footscray railway station produces 40 per cent less greenhouse gas emissions than a standard station design, uses 60 per cent less water and, in the middle of summer, its maximum electrical demand is 30 per cent lower.

“Not only are these stations environmentally sustainable, they are also safe, accessible and user-friendly,” says CEO Allen Garner.

4 Star Green Star Custom Design

PROJECT

BARANGAROO SOUTH

SYDNEY’S LARGEST URBAN RENEWAL PROJECT SINCE THE 2000 OLYMPICS Barangaroo South will eventually be home to around 1,500 residents, and will house 23,000 office workers and 80 new retail outlets. More than half the precinct will be open public space for everyone to enjoy.

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Featuring a mix of commercial, residential, retail and hospitality venues, along with a new landmark hotel and casino, Barangaroo South presents a once-in-a-lifetime opportunity to address sustainability.

The precinct recently achieved a 6 Star Green Star – Communities rating from the Green Building Council of Australia, which represents ‘world leadership’ in the design of sustainable communities.

The project was assessed across five sustainability impact categories: Governance, Liveability, Economic Prosperity, Environment and Innovation.

Developer Lendlease has committed that each and every building at Barangaroo South will achieve a Green Star rating. One of only 17 projects globally to be part of the C40 Cities-Clinton Climate Initiative’s Climate Positive Development Program, Barangaroo South is capable of being water positive, with an on-site blackwater treatment plant capable of supplying one million litres of recycled water a day to the precinct and surrounding suburbs.

Barangaroo is also targeting zero net waste to landfill by 2020.

Barangaroo South features a number of ‘firsts’ in the sustainability space.

Take Lendlease’s work on supply chain engagement, for example.

The ‘International Towers’ office development at Barangaroo South, which has achieved a swag 6 Star Green Star ratings, was awarded Green Star ‘Innovation’ points for a framework that will change the way the entire supply chain operates. This framework will influence what producers make, how they make it, who they sell to and how they market. In this context, sustainability is a risk management tool that ensures companies don’t get cut out of the market.

Lendlease also developed a Climate Change Adaptation and Community Resilience report which maps the climate change effects likely to impact the $1.2b precinct. Lendlease has adapted the design of Barangaroo South to mitigate these impacts.

An expected increase in the number of extreme heat days, for instance, is being addressed by the selection of materials along boardwalks with a high solar

reflectance index. Public realm areas have been modelled for sunlight exposure and wind movement to find the balance

STORMWATER INFRASTRUCTURE HAS BEEN UPGRADED AND BUILDING FACADES HAVE BEEN DESIGNED TO WITHSTAND INTENSE STORMS AND WINDS, WHILE THE GROUND PLANE WAS RAISED TO ADDRESS SEA LEVEL RISES OF 0.9 METRES PREDICTED BY THE INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE

between winter and summer comfort, with tree-lined promenades, street awnings and drinking water fountains being integrated into the design.

Stormwater infrastructure has been upgraded and building facades have been designed to withstand intense storms and winds, while the ground plane was raised to address sea level rises of 0.9 metres predicted by the Intergovernmental Panel on Climate Change.

Lendlease’s Managing Director Steve McCann says resilient urban communities are one of the most sustainable responses a society can make to economic growth.

“As the world’s population urbanises, there is a greater emphasis placed on the role of the built environment, including place, sustainability and community outcomes. People want to live and work in cities that are liveable, connected, accessible and beautiful.”

THE BUILDING ECONOMIST - JUNE 2016 - 19

4 STAR GREEN STAR – CUSTOM DESIGN

COLES A typical supermarket consumes around 1.8 million kilowatt hours in electricity each year – generating a similar amount of greenhouse gas emissions as 260 passenger vehicles. At Coles Hallam, a range of energy efficiency measures, such as LED lighting and highperformance heating, air-conditioning and ventilation systems, have reduced electricity consumption by around 23 per cent, when compared with standard supermarket design.

Coles Hallam also consumes 70 per cent less water than its competition. Bathroom taps, toilets, urinals and showers were chosen because of their water-saving power. Rainwater is captured in a series of water tanks with a total storage capacity of 150,000 litres, which is reused for toilet flushing and heat rejection equipment. As a result, the yearly water saving is around 780 kilolitres – enough to fill an Olympic-sized swimming pool three times over.

Coles Property General Manager Sam Pinchbeck says that Coles is proud to be the first Australian supermarket chain to be recognised with a Green Star rating.

“Coles is committed to sustainability because we know it’s good for our customers, good for business and the right thing to do for the environment.

Gaining this Green Star rating is one significant way we are achieving our sustainability goals,” he says.

20 - JUNE 2016 - THE BUILDING ECONOMIST

INSIGHT

THE INFLUENCE OF TIME IN SUSTAINABILITY Professor Craig Langston Faculty of Society & Design, Bond University, Australia

Professor Craig Langston (FAIQS, MRICS, MCIOB, AAIPM, ICECA, GPM-b) is Director of the Centre for Comparative Construction Research (CCCR) at Bond University.

He is an academic with over 30 years experience across three leading Australian universities, practising in the areas of quantity surveying, construction management, facilities management and project management. He was the first person to be awarded a PhD in Quantity Surveying at UTS.

INTRODUCTION Gardner (2014) notes that half of Australia’s infrastructure required for 2050 is yet to be constructed, so there appears a lot of opportunity for built environment professionals to contribute to a more resilient nation in the years ahead. Sustainable development can help to mitigate the impacts of climate change, but only if it takes account of the potential economic, social and environmental benefits over the design life of the project. In particular, good architecture should embrace a philosophy of long life, loose fit and low energy (Gordon, 1972) to ensure that new infrastructure is not a burden on society but rather a strategy to improve future living standards in the context of broader sustainability goals.

Green (or ‘living’) roofs represent an opportunity to explore this strategy and make a positive contribution to the quality of our urban environment (Werthmann, 2007; Jafal et al., 2012). The Green Growing Guide (Department of Environment and Primary Industries, 2014) is a useful summary of background information on this topic. Green roofs comprise vegetation added to the roof element of buildings, and are classified as either extensive or intensive systems (Snodgrass, 2010). The key difference between them is plant type, access and soil depth or weight. Extensive green roofs have moss or grass vegetation, maintenance only access and a shallow depth for the growing medium (typically less weight than 150kg/ m2). Intensive green roofs have a wider variety of plants, are designed as trafficable public spaces, and have a soil depth of

around 250mm or more. A true green roof covers at least 30% of a building’s overall roof area (City of Sydney, 2014).

Residential green roofs are not common in Australia. This may be a function of the obvious higher construction cost, the difficulty in relating it to associated social and environmental benefits, or even normal industry practice and expectations. The aim in this paper is to develop and apply an evaluation approach that integrates economic, social and environmental performance criteria to compare a long life, loose fit, low energy strategy (incorporating an intensive green roof) against a traditional strategy for domestic housing. To fulfil this objective, a case study methodology is applied.

THE BUILDING ECONOMIST - JUNE 2016 - 21

GENERAL SUMMARY GREEN ROOF PROJECT, GOLD COAST Green roofs are unlikely to represent a viable outcome compared to conventional roof systems when assessed in isolation. That is a clear finding in this study. However, an integrated design solution that optimises economic, social and environmental factors can embrace the advantages of green roofs while dissipating the negatives of upfront cost. In regard to financial issues, the higher construction cost of green roofs must be offset by lower operating costs elsewhere. The same applies for the building’s initial and recurrent carbon footprint. Extra usable space from an intensive green roof can add further value and reduce the overall resource ‘cost’ per square metre. This paper therefore develops a framework to evaluate an integrated long life, loose fit, low energy strategy capable of delivering a favourable outcome for residential green roof applications.

METHOD The selected research method is measurement via detailed case study. Case study is an ideal methodology when a holistic in-depth investigation is needed (Feagin et al., 1991).

It has been used in varied investigations, particularly in sociological studies but increasingly in construction. The procedures are robust, and when followed the approach is as well developed and tested as any in the scientific field. Whether the study is experimental or quasiexperimental, the data collection and analysis methods are known to hide some details. Case studies, on the other hand, are designed to bring out the details from the viewpoint of the participants by using multiple sources of data (Tellis, 1997).

Two case studies are employed in this research.

Both relate to residential houses of the same area on the same 35 x 20m (700m2) western frontage site; one optimised for low operating costs including an intensive green roof, the other optimised for low capital costs that reflects traditional new construction on the Gold Coast in Queensland, Australia. The Gross Floor Area (GFA) at ground level for each house is limited to 50% of the site area. Build time (from site possession to client handover) is predicted to be 15 weeks in both cases.

22 - JUNE 2016 - THE BUILDING ECONOMIST

CAPITAL COSTS Preliminaries Substructure Superstructure Finishes Fittings Services Proportion of Preliminaries Design Risk Allowance Locality Allowance

BC% $

180,000

Market Allowance

BUILDING COSTS

8.06 43.26 18.31 7.40 8.03 14.95 -

100.00%

Centralised Energy Systems Alterations and Renovations Site Works External Services External Alterations and Renovations Proportion of Preliminaries

NET PROJECT COST

$/m2 125.99 676.58 286.33 115.74 125.59 233.74 -

88.196 473.604 200.430 81.016 87.910 163.620 -

1,563.97

1,094.776

99.89 33.29 23.40

69.920 23.300

1,720.54

1,204.376

Special Provisions

Land Purchase Costs Exclusions Rise and Fall Finance Costs

ANTICIPATED TOTAL COMMITMENT

EMBODIED ENERGY

Market Allowance

BUILDING ENERGY Centralised Energy Systems Alterations and Renovations Site Works External Services External Alterations and Renovations Proportion of Preliminaries

NET PROJECT ENERGY Special Provisions

GROSS PROJECT ENERGY Land Purchase Costs Exclusions Rise and Fall Finance Costs

ANTICIPATED TOTAL COMMITMENT

16.380

-

GROSS PROJECT COST

Preliminaries Substructure Superstructure Finishes Fittings Services Proportion of Preliminaries Design Risk Allowance Locality Allowance

Present Value

BE% GJ

1,152

13.95 41.46 20.35 10.35 7.03 6.86 -

100.00%

1,720.54

1,204.376

785.71 50.00 85.71 -

550.000 35.000 60.000

2,641.97

1,849.376

GJ/m2

Energy(GJ)

3.10 9.22 4.53 2.30 1.56 1.53 -

2,172 6,455 3,169 1,611 1,095 1,068 -

22.24

15,570

1.29 0.33 0.12

902 234

23.99

16,790

84

-

23.99

16,790

0.57 -

400

24.56

17,190

TOTAL PROJECT

OPERATING COSTS Preliminaries Substructure Superstructure Finishes Fittings Services Proportion of Preliminaries Design Risk Allowance Locality Allowance

BC% $

300,000

Market Allowance

BUILDING COSTS

3.74 7.36 8.38 60.87 19.66 -

112,145 814,790 263,186 -

100.00%

1,912.27

1,338.587

158.32 56.57 52.59

110,827 39,600

2,179.75

1,525.828

71.43

50,000

2,251.18

1,575.828

71.43 214.29 50.00 -

50.000 150,000 35.000

2,586.90

1,810.828

NET PROJECT COST Special Provisions

GROSS PROJECT COST Occupancy Costs Exclusions Selling Costs Finance Costs

ANTICIPATED TOTAL COMMITMENT

Preliminaries Substructure Superstructure Finishes Fittings Services Proportion of Preliminaries Design Risk Allowance Locality Allowance Market Allowance

BUILDING ENERGY Centralised Energy Systems Alterations and Renovations Site Works External Services External Alterations and Renovations Proportion of Preliminaries

NET PROJECT ENERGY Special Provisions

GROSS PROJECT ENERGY Occupancy Costs Exclusions Selling Costs Finance Costs

ANTICIPATED TOTAL COMMITMENT

BE% GJ

1,152

Present Value

71.43 140.67 160.21 1,163.99 375.98 -

Centralised Energy Systems Alterations and Renovations Site Works External Services External Alterations and Renovations Proportion of Preliminaries

RECURRENT ENERGY

$/m2

-

GJ/m2

50,000 98,466

36,814

Energy(GJ)

17.79 70.79 9.59 -

0.57 4.71 18.67 2.54 -

3,300 13,069 1,779 -

100.00%

26.50

18,548

0.87 1.03 0.20

607 720

28.59

20,016

0.71

500

29.31

20,516

2.16

1.71 -

31.02

400

141

1,200

21,716

Figure 1 summarises the cost and energy profiles for the green roof project over its 100-year design life. Gross Project Cost (AUD$ as at June 2015) and Gross Project Energy (GJ) reflect the expected capital (embodied) or operating (recurrent) resources and form the basis for comparison with the traditional project design. Energy (GJ) is later converted to carbon footprint (tCO2e) to model overall environmental impact.

Capital cost data are based on composite items of building work measured and priced in the form of an elemental cost plan. An independent quantity surveyor experienced with local conditions is engaged to validate pricing. The supply of loose furniture and equipment and the optional inclusion of an in-ground swimming pool apply equally in both case studies and hence are ignored from the comparison.

Embodied carbon footprints are computed from the cost plan using energy intensities from an Australian specific input-output-based hybrid model (Treloar, 1998; Crawford, 2004) to which an average emission factor of 65.07kgCO2e/GJ for Australia’s current energy generation mix is applied (see Appendix).

Operating cost data are estimated from reasonable cycles for future energy, maintenance and replacement work, expressed as discounted value. Household cleaning and gardening activities are specifically excluded from the calculations (i.e. these tasks are assumed to be undertaken by the owners). Billing data for sewerage, water, gas and electricity usage are estimated and benchmarked against actual projects. Recurrent carbon includes the supply of primary energy in the form of natural gas (51.33kgCO2e/GJ) and grid electricity (0.81kgCO2e/kWh) in Queensland (Department of the Environment, 2014) plus further embodied energy in recurrent repair and replacement activities (cycles derived from personal experience and manufacturer warranties and conditions).

The green roof project is calculated from a prototype design for an intensive green roof over a largely single storey residence of 400m2. The additional usable roof (Unenclosed Uncovered Area) created is 300m2. This proposal is compared to a traditional two-storey brick veneer project of the same enclosed area. In both cases, the designs comply with the Building Code of Australia for Class 1 & 10 (Residential Structures) in Zone 2 (Temperate Climate: Gold Coast, Australia).

The green roof project requires a more substantial structure to carry the added weight of soil and retained water and to form a stable surface for the waterproof membrane. The area of green roof amounts to approximately 85% of

THE BUILDING ECONOMIST - JUNE 2016 - 23

the total roof area. It should be densely planted as an evergreen non-invasive roof garden while still permitting full access and amenity for building occupants. Further, this case includes compatible design choices that reflect low maintenance low technology materials and systems to improve longevity; multi-purpose space, non-loadbearing walls, movable bedroom partitioning systems and open planning to permit future functional change; natural light and ventilation via a central atrium with a 5kW photovoltaic array on its north-facing roof capable of providing 100% of the electricity needs of the occupants over the course of a year; plus rainwater collection for use as general irrigation. Dimmable LED lighting is used throughout.

On the contrary, the traditional project reflects what is commonly delivered in the local market, and aims to keep the initial construction price low through largely timber-framed loadbearing superstructure and metal sheet roofing, maximised speed of assembly through use of off-site prefabricated wall frames, floor beams and roof trusses, and more energy-intensive technologies such as ducted reverse cycle air-conditioning, clothes dryer, specialist media room, and multiple large plasma TVs. Generally internal walls and ceilings are painted plasterboard and external walls are painted cement render. While solar hot water is included, gas supply is not standard and the design generally has a high reliance on external power and water.

real discount rate chosen for the comparison is 3%, which is a probable long-run reflection of the difference between investment return and inflation rates in Australia.

A graph showing the results of a cumulative discounted cash flow for each case is provided in Figure 2. It is seen that the green roof project has a higher capital Gross Project Cost but lower operating costs than the traditional project, and the point after which the green roof project represents better value is about 30 years.

Given a notional design life for either case of 100 years, an economic benefit is available to the first or subsequent owner, and therefore to society as a whole.

Capital cost for the green roof project is $1,204,376. The traditional project has a 54% advantage. After 25 years the comparative operating cost is modelled as $329,965 for the green roof project and $665,687 for the traditional project, which grows to $556,066 and $1,141,121 respectively after 50 years and $741,659 and $1,577,318 respectively after 100 years.

Residual value may be treated as a negative cost, based on market value. In this study it is assumed to have the same ratio to construction cost after inflation and depreciation, so can be ignored from the comparison.

Performance is modelled over a building life of 25, 50 and 100 years using indicative economic, social and environmental criteria. Each criterion is analysed separately, quantified, and then combined together as a single overall rating out of 100.

Economic performance is calculated as ‘base divided by discounted life-cost’ at a particular stage of the project’s life cycle, expressed as a percentage. The base is the minimum realistic cost for a project of this type and size at Year 0. A survey of large project home builders on the Gold Coast suggests that this value is approximately $400,000 for June 2015 once basic site works and minimal inclusions have been added (i.e. $1,000/m2). Therefore, as an example, the economic performance (i.e. profit criterion) of the green roof project at Year 25 is 26.07%, computed as $400,000 divided by ($1,204,376 + $329,965) and multiplied by 100.

ECONOMIC PERFORMANCE

SOCIAL PERFORMANCE

Known as the ‘profit’ criterion, economic performance is computed as time-adjusted capital and operating costs over the building life using a discounted cash flow approach. The

Known as the ‘people’ criterion, social performance is computed using a weighted matrix of non-financial characteristics that contribute to social quality of life. Characteristics

CASE STUDY FINDINGS

24 - JUNE 2016 - THE BUILDING ECONOMIST

Figure2: ‘Discounted Value ($million @ 35) / Life Cycle (years) – Green Roof Project / Traditional Project

Figure 3: Performance Criteria/ comfort/ Utility/ Aesthetics / Externalities Green Roof Project / Traditional Project Total 378 /341

THE BUILDING ECONOMIST - JUNE 2016 - 25

are weighted using consensus according to relative importance (using a 1-10 scale, where 10 is high importance) and then assessed for each case study (using a 0-5 scale, where 5 is high compliance).

The comparative weighted matrix for each case is provided in Figure 3. Overall score is computed as the sum of the multiplication of performance level and relative weighting for each performance criterion. To be fair, the same performance criteria are applied to both cases. The green roof project has the highest weighted performance of 378 out of a maximum possible score of 600. This compares to 341 out of 600 for the traditional project. Therefore social performance (i.e. people criterion) of the green roof project is 63.00% (computed as 378 divided by 600 and multiplied by 100), while the traditional project is 56.83%.

These scores are assumed to be constant over time.

The key criteria relate to comfort, utility, aesthetics and externalities. Issues of durability, ease of construction, maintenance liability, market value and other matters best measured in monetary terms are part of economic performance and hence not included here (this would otherwise introduce double counting). Embodied and recurrent carbon demand, measured in tCO2e, is similarly dealt with as environmental performance. All other matters, sometimes described as intangible criteria, are intended to be part of social performance.

ENVIRONMENTAL PERFORMANCE Known as the ‘planet’ criterion, environmental performance is computed in terms of embodied and recurrent carbon footprint at various stages of the project’s life cycle. Waste management activities during construction and ongoing household lifestyle behaviours are considered equal to both cases, and ignored, while other community impacts have been accounted for previously as intangible externalities.

The proportion of renewable to total energy in Australia is growing and is expected to reach 20% in 2020. So the average emission factor for embodied energy gradually decreases, and should fall to about 60kgCO2e/ GJ by then. To model this trend, future CO2e needs to be ‘discounted’ at a rate of 1.5% per annum. At this rate, emission conversion will equal about 50kgCO2e/GJ in 2033.

The comparative carbon modelling outcomes for each case are provided in Figure 4. Carbon footprint (tCO2e) is a measure of the amount of initial and operational resources that demand fossil fuels, including

Figure4: ‘Carbon Footprint (Tco2e) / Life Cycle (years) – Green Roof Project / Traditional Project

26 - JUNE 2016 - THE BUILDING ECONOMIST

embodied carbon in future component replacement, and hence impact on the environment. Total carbon footprint for each case study accumulates over time at different rates, with equivalence occurring at about the 30-year point. If a project uses more renewable resources or recycled content with less demand for fossil fuels, then its carbon footprint is lower.

Embodied carbon for the green roof project is 1,093tCO2e. The traditional project has a 111% advantage.

After 25 years the comparative recurrent carbon is modelled as 287tCO2e for the green roof project and 785tCO2e for the traditional project, which grows to 585tCO2e and 1,481tCO2e respectively after 50 years and 970tCO2e and 2,583tCO2e respectively after 100 years. High initial embodied carbon is not necessarily a problem provided it is harnessed to extend the frequency of future replacement and/or has other recycling or reprocessing potential after its original deployment has concluded.

Similar to the economic criterion, environmental performance is calculated as ‘base divided by carbon footprint’ at a particular stage of the project’s life cycle, expressed as a percentage. The base is the minimum realistic carbon footprint for a project of this type and size at Year 0. This has been estimated at approximately 250tCO2e (i.e. 0.625tCO2e/m2). Therefore, as an example, the environmental performance (i.e. planet criterion) of the green roof project at Year 25 is 18.12%, computed as 250tCO2e divided by (1,093tCO2e + 287tCO2e) and multiplied by 100.

OVERALL PERFORMANCE Beech (2013) described the 4Ps of sustainable prosperity: profit, people, planet and progress. He referred to these four criteria as a quadruple bottom line (QBL) philosophy. Progress was defined as adaptive innovation, but can alternatively be argued as the synergistic influence of the other three criteria. In this study, the following formula for overall QBL performance is used:

progress = profit + people + planet 3

Profit, people and planet are considered in this study as equally important, and measured as an index out of 100. The higher the QBL index, the better the overall performance at a given point in the project’s life cycle, and the more progressive the project is judged. Table 1 describes the QBL indices that have been computed for the green roof project and the traditional project.

Stage of Life Cycle

Table 1: Overall Performance Assessment

Green Roof Project

Traditional Project

Preferred Option

Year 0 (initial)

39.70

52.01

Traditional

After 25 years

35.73

34.53

Green Roof

After 50 years

33.54

30.04

Green Roof

After 100 years

31.89

27.28

Green Roof

THE BUILDING ECONOMIST - JUNE 2016 - 27

For example, the QBL index for the green roof project at Year 25 is computed as (26.07 + 63.00 + 18.12) divided by 3, or 35.73. This value suggests the green roof project is 3.47% better overall than the traditional project. It is 23.67% worse off in Year 0. The point of equivalence between both cases is nearly 25 years.

Intensive green roof construction adds additional capital cost. Nevertheless, the green roof project is shown as a superior choice to the traditional project for the most part of their 100year design life, so it is reasonable to conclude that considerable societal advantage can apply. The same advantage would not be expected for simpler (i.e. extensive) green roof designs, since longevity and performance contributions are lower and water-shedding ability is problematic.

DISCUSSION This paper is not an evaluation of the merits of a green roof, for if it was then it would have to be the only difference between case studies. But this research makes a strong case for the use of residential green roof construction in the context of a higher capital cost and lower operating cost profile. The latter is not dependant on an intensive green roof per se, but a number of decisions flow from this type of design, such as rigid concrete frame, nonloadbearing walls, higher use of thermal mass, and superior cyclone or bushfire defence.

While the traditional project has a lower capital cost and higher operating cost profile, the green roof project takes the same time to build (i.e. 15 weeks) and provides rain protection for construction workers after just 7 weeks.

But one important aspect has so far been ignored. The green roof project creates an extra 300m2 (or 75%) extra usable floor area, which explains to some extent why it consumes more resources initially. If economic and environmental criteria were expressed as $/m2 and tCO2e/ m2 respectively, an alternative outcome is obtained. This is summarised in Table 2.

Stage of Life Cycle

Green Roof Project

Traditional Project

Preferred Option

39.70

52.01

Traditional

After 25 years

35.73

34.53

Green Roof

After 50 years

33.54

30.04

Green Roof

After 100 years

31.89

27.28

Green Roof

Year 0 (initial)

Using these revised QBL indices, the green roof project is now 3.29% better off in Year 0, and improves over time to 46.87% after 100 years. The traditional project QBL indices are unaffected.

This study demonstrates that green roof design, to be competitive, must be accompanied by other decisions that reflect a long life, loose fit, low energy philosophy. Often referred to in the context of ‘good architecture’, these principles are not always commonly practised. Material choice should be based on longevity and low maintenance, not capital cost. Floor layouts should be capable of change over time with minimal disruption and expense. Design should provide a comfortable living environment without the need for mechanical systems. When

28 - JUNE 2016 - THE BUILDING ECONOMIST

Table 2: Alternative Assessment (Relative to Size)

these matters are integrated into a green roof project, the result is lower operating costs that offset the higher initial spend.

THIS STUDY DEMONSTRATES THAT GREEN ROOF DESIGN, TO BE COMPETITIVE, MUST BE ACCOMPANIED BY OTHER DECISIONS THAT REFLECT A LONG LIFE, LOOSE FIT, LOW ENERGY PHILOSOPHY…MATERIAL CHOICE SHOULD BE BASED ON LONGEVITY AND LOW MAINTENANCE, NOT CAPITAL COST.

CONCLUSION A new evaluation framework is proposed, where ‘profit’ is computed as time-adjusted capital and operating costs over the building life using a discounted cash flow approach, ‘people’ is computed using a weighted matrix of non-financial characteristics that contribute to social quality of life, and ‘planet’ is computed in terms of embodied and recurrent carbon footprint at various stages of the project’s life cycle. In each case performance is compared to a common benchmark, and overall performance (i.e. ‘progress’) is computed for any time horizon as a mean of the resulting ratios.

For economic and environmental criteria, time is show as important in the correct identification of overall performance. In the case of green roof design, the additional useable space created must be factored into any conclusions that are drawn.

An extended version of this paper (including all references) was originally published in Construction Economics and Building and can be accessed at https://epress.lib.uts.edu.au/ journals/index.php/AJCEB/article/view/4617 . This journal is open access and the paper can be freely downloaded and shared.

Construction Economics and Building (formerly known as the Australasian Journal of Construction Economics and Building [AJCEB]) is a peer reviewed, open access journal that publishes original research into all aspects of the economics and management of building and construction, quantity surveying and property management as well as construction education. It is free for authors, readers and libraries.

THE BUILDING ECONOMIST - JUNE 2016 - 29

APPENDIX

30 - JUNE 2016 - THE BUILDING ECONOMIST

APPENDIX

THE BUILDING ECONOMIST - JUNE 2016 - 31

AUSTRALIAN AUSTRALIAN INSTITUTE OF OF INSTITUTE QUANTITY QUANTITY SURVEYORS SURVEYORS

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INSTITUTE OF QUANTITY SURVEYORS AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS

Topics Available as at 15 June 2016 Topics Available as at 15 June 2016 Construction Change Management Basic Skills - Establish Extent of Proposed and Actual Scope - Basic Measurement Skills Changes Change Management - Communication Skills Construction Basic Skills Claims During and Construction - Personal & Interpersonal Skills - Manage EstablishCost Extent of Proposed Actual Scope - Basic Measurement Skills Resource - Business & Management Changes Analysis - Communication Skills Skills - Manage Cost Claims During Construction - Computers Essentials Skills - Personal && IT Interpersonal Resource Analysis Tender Process - Business &Law Management Skills - Construction & Regulation - Computers IT Essentials - Prepare Documentation Inputs to the Tender - Diversity in the&Workplace Tender Process - Construction Law & Regulation - Evaluate & Award of Tenders - Safety in the Workplace Prepare Documentation Inputs to the Tender Diversity in the Workplace - Professional Practice Evaluate & Award of Tenders Safety in the Workplace Measurement of Building Works - Construction Technology - Professional Practice - Preliminaries Measurement - Construction - Demolition of Building Works Budgetary ProcessTechnology Preliminaries -- Ground works – Excavation, Filling & Hardcore, - Cost Management & Monitoring Procedures - Demolition Budgetary Process Paper & Plastic Membranes - Cash Flow - Ground works – Excavation, Filling & Hardcore, - Cost Management & Monitoring Procedures - Ground works – Underpinning & Rock - Budgeting for Projects Paper & Plastic Membranes - Cash Flow - Preparing Cost Reports -Stabilisation Ground works – Underpinning & Rock - Budgeting for Projects - Natural Stonework, Artificial Stone, Terracotta - Appraise CostCost Reporting Stabilisation - Preparing ReportsSystems and Similar Work Artificial Stone, Terracotta - Natural Stonework, - Appraise Cost Reporting Systems - Metalwork Cost Estimating and Similar Work -- Windows - Preparing Estimates Metalworkand Glazing Cost Estimating -- Driven Piling Cast Insitu Piling - Developing Components Windows and&Glazing - PreparingCost Estimates -- Formwork Driven Piling & Cast Insitu Piling - Evaluating CostCost Estimates - Developing Components Formwork -- Insitu Concrete - Evaluating Cost Estimates - Estimating Procedures & Estimate Reviews Insitu Concrete - Estimating Procedures & Estimate Reviews -- Prestressing Prestressing -- Reinforcement Cost Planning Reinforcement Cost Planning Drainage - Analyse & Advise on Various Alternative Design Drainage Analyse & Advise on Various Alternative Design - Mechanical Installations Solutions Mechanical Installations Solutions - Facade Systems - Project Cost Objectives & Parameters Facade&Systems - Project Cost Objectives & Parameters -- Doors Hardware - Prepare Cost Plan - Doors & Hardware - Prepare Cost Plan - Painting - Prepare Project Implementation & Procurement - Painting - Prepare Project Implementation & Procurement - Masonry Plan - Masonry Plan - Landscaping & Road Works - Analyse Time Related Cost Data - Landscaping & Road Works - Analyse Time Related Cost Data -- Precast Concrete - Cost Estimate Using thethe Time Related Precast Concrete - Cost Estimate Using Time RelatedData Data - Data Required to Prepare Cost Plans - Data Required to Prepare Cost Plans Claims DisputeResolution Resolution - Provide Advice on on Cost Plan toto Client Claims & & Dispute - Provide Advice Cost Plan Client -- Establish Background andCollect CollectData Data Establish Background and Negotiate Claims Under Contract General Procurement Advice - Negotiate Claims Under Contract General Procurement Advice -- Dispute ResolutionProcesses Processes - Provide Input into thethe Development ofofthe Dispute Resolution - Provide Input into Development the -- Expert Witness Expert Witness Project Brief Project Brief - Collect Procurement Requirements - Collect Procurement Requirements Financial Audit - Evaluate Project Delivery Systems Financial Audit - Evaluate Project Delivery Systems Bank Reports Reports - Undertake Constructability Analysis -- Bank - Undertake Constructability Analysis Contact Contact AIQS

AIQS Level 3 Level 3 70 Pitt St 70 Pitt St Sydney NSW 2000 Sydney NSW 2000 +61 2 8234 4000 +61 2education@aiqs.com.au 8234 4000 education@aiqs.com.au

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PEOPLE

GOING BEYOND ESTIMATING

Elena Zagorenko, South Australian Chapter Vice-President of the Australian Institute of Project Management In pursuit of constant improvement to make projects efficient, project managers often first look at changing the most obvious things like contracting strategies and delivery methodologies.

We are so focussed on how we can create efficiencies and savings, that we sometimes overlook the obvious – ensuring that our team members are also given the opportunity to step up and influence project outcomes.

Every once in a while, a unique opportunity presents itself to make us reconsider the way we normally approach project delivery.

My opportunity came in the form of the Substation Plant Isolator Refurbishment project that I delivered for ElectraNet. The aim of the Substation Plant Isolator Refurbishment Project was to refurbish a third of all the high-voltage isolators around ElectraNet’s network in South Australia. High-voltage isolators are used in electrical substations to allow safe access to other highvoltage assets (e.g. circuit breakers, transformers and transmission lines) for maintenance or upgrade. If a high-voltage isolator malfunctions, it would be significantly harder to take substation equipment out of service.

From the outset, this complex project presented a range of significant technical challenges. Each of the 430 isolators around the network had varying, unknown latent conditions. In addition, any access to the isolators would have to be balanced against planned network outages, power flow constraints and other capital project works and maintenance activities that were also happening on the network.

As there was no data available to underpin the cost estimate, and latent conditions were unknown, it rapidly became evident that the

34 - JUNE 2016 - THE BUILDING ECONOMIST

standard approach (define the scope, prepare a cost estimate, award the contract and deliver the scope while managing additional scope through variations and issuing a contract for latent conditions) would not be an effective way of managing and delivering the project.

“Force-fitting” the usual approach to this project would have meant that each time a latent condition was uncovered, the contractor would have to contact ElectraNet, calculate costs and wait for the formal direction to progress. This would have resulted in more outages and site visits, some to remote areas, and a higher cost per isolator refurbished.

Also, there was a fixed amount of resourcing on this project. The small team comprised of the design manager, substation engineer, project estimator, project controller and me.

As the biggest challenges on this project related to scope cost and contract management, this meant that I needed to look for viable alternative approaches. One such approach resulted from lateral thinking from the project estimator on my team, about how her skills could be used beyond their usual capacity on this project.

On a typical project, the project estimator provides an estimate in the Planning phase. Once the scope is understood, the project estimator

then does a detailed estimate before the work gets contracted out.

From that point, the project estimator does not get called upon until the end of the project, when capitalisation needed to be done.

All the work relating to scope changes and variations would be handled by a contract administrator.

In this instance, the project estimator was able to standardise a lot of the processes that were usually done by a contract administrator, which then allowed her to take ownership over the whole process during the delivery of the project.

The team first worked to break down the known and unknown scope of works into small work packages. A schedule of rates was then prepared and the project estimator worked with the contractor to identify any possible efficiencies, associated discounts and pricing ranges. As a result of this, the schedule of rates became a self-driven tool, as it became very easy to assess claims from the contractors against these criteria.

The project estimator was also able to provide additional support to the project controller in the delivery phase of this project. This was done by creating a data capture report that would allow the team to check how much work was done on each of the isolators and derive the actual cost of each individual isolator, and also control the average cost per isolator.

All the claim breakdowns went directly to the project estimator, and she would get the scope and cost checked before approving the claim to be invoiced. This completely eliminated the need for a contract administrator on the project, as this part of the project was able to run itself.

In this instance, the project estimator was responsible and accountable for: • Preparing the cost breakdown schedule for an indicative

scope, which then allowed the project to go to tender and for “apples with apples” to be compared.

• Assessing the tender.

• Further working with the contractor, after one was appointed, to establish detailed schedule of rates so the project could run itself, in turn reducing the effort in managing costs during the delivery phase.

• Creating a reporting tool to capture the data supplied by

contractors in their claims, providing the team with the

necessary data to underpin asset management decisions and control the project costs.

• Assessing and verifying all the claims made by contractors against the schedule of rates and previous claims.

What this meant was that most of the financial control of the project on a day-to-day basis could be delegated to the project estimator, enabling the project estimator to take ownership of a parcel of work instead of individual, ad hoc tasks.

THE ROLE OF PROJECT COST ESTIMATORS ON A PROJECT CAN OFTEN BE UNDERSTATED Their involvement on a project is sometimes confined to activities like providing a cost estimate at the start of the project. However, I believe that if project estimators are sufficiently empowered, as demonstrated on this project, they can be an invaluable resource in redefining delivery strategy, controlling costs and liaising with contractors.

Elena Zagorenko, South Australian Chapter VicePresident Australian Institute of Project Management “In the last four years as a Project Manager with ElectraNet, I have run a $57m portfolio of operational maintenance projects, which included delivery of more than 50 refurbishment projects.

Their successful delivery demonstrates my ability to build effective relationships with multiple project stakeholders on complex projects, as well as my skill as a proactive problem-solver and result-oriented project management professional.

I am experienced in a broad range of business functions such as scheduling, planning, estimating, procurement, business process development. These skills, combined with my background in international marketing, add to my project management capability.

I am also passionate about educating and inspiring the next generation of Project Managers. I have developed and run a course for the Masters Degree in Project Management with the University of South Australia and I am the Vice President of the South Australian Chapter of the Australian Institute of Project Management (AIPM), and the Chair of the Women in Project Management (WIPM) stream.

In 2015, I won Young Project Manager of the Year at the South Australian AIPM Project Management Achievement Awards, National AIPM Project Management Achievement Awards, and Asia Pacific Project Management Awards.”

THE BUILDING ECONOMIST - JUNE 2016 - 35

Q&A WITH AIQS SCHOLARSHIP WINNER AND YQS MEMBER JEREMY WALKER “The journey for any career can be a daunting task, scholarships provide a platform for future quantity surveyors with assistance, support and recognition that is required to be successful in the construction industry.

The next step in the journey is a cadetship / intern program providing that the candidate with hands on experience, support, training and a pay check.

In combining the scholarship, university studies and cadetship a young quantity surveyor is provided with the professional tools that is already proven themselves as an integral part of the construction industry and is ready to become a leader of tomorrow.”

1. WHEN DID YOUR INTEREST IN QS START AND HOW DID THAT COME ABOUT? My interest in construction started when I was approximately 12 years old when I started helping my dad out with odd construction projects around the house as he is very hands on. This lead to me having an interest in the construction industry. In year 12 I had a lengthy conversation with my grandpa who is a careers advisor and I told him what I like and what I was good at and so he recommended surveying, and it was when I researched surveying that I came across quantity surveying – a combination of two things that I thoroughly enjoy – numbers and construction.

Simon Squire, FAIQS

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"A COMBINATION OF TWO THINGS THAT I THOROUGHLY ENJOY – NUMBERS AND CONSTRUCTION" 2. PLEASE TELL US ABOUT YOUR EXPERIENCE SINCE WINNING THE SCHOLARSHIP Since winning the scholarship I have obtained a cadetship with Rider Levett Bucknall. I have immersed myself in so many projects in such a short time, broadening my understanding of the profession and the industry day by day.

I have been measuring plans, assisting

in developing estimates and of course some duties around the office that only a first year cadet would have to do (collecting mail etc).

Without the AIQS I would not have been able to obtain my current scholarship, thus preventing me from gaining a reliable income but more importantly, would have prevented me from gaining a job where I am able to gain industry experience and use both university and work to provide me with help for each other when necessary. It has truly provided me with a start to my career in quantity surveying.

3. WHAT ADVICE WOULD YOU GIVE TO EMERGING QUANTITY SURVEYORS? I would advise all of those keen and interested in partaking in the QS industry to seek work where your values, skills and attributes are rewarded, that being the AIQS, they have provided me with the best possible start and so I strongly suggest that all those wanting to become a part of this integral industry to make yourself known, apply for jobs, because people aren’t going to look your name up and ask for you, you need to make yourself known to them and prove why you’re the best person for the job.

4. LOOKING AHEAD WHAT ARE YOUR MAJOR GOALS FOR THE NEXT COUPLE OF YEARS? In the near future I would like to see myself progressing through university obtaining marks that reflect my ability, and also proving myself at work, by showing that I have more than what it takes to succeed and do better than average, or simply what is expected,

I want to be resetting standards and making sure that everything I do is of the best standard and that my work reflects what I am capable of.

SEEK WORK WHERE YOUR VALUES, SKILLS AND ATTRIBUTES ARE REWARDED, THAT BEING THE AIQS, THEY HAVE PROVIDED ME WITH THE BEST POSSIBLE START AND SO I STRONGLY SUGGEST THAT ALL THOSE WANTING TO BECOME A PART OF THIS INTEGRAL INDUSTRY TO MAKE YOURSELF KNOWN 5. WHAT ADVICE WOULD YOU GIVE TO STUDENTS THINKING OF APPLYING FOR NEXT YEAR’S SCHOLARSHIP? Take your time. Don’t rush it. Think it through because the amount of effort you put in to that essay will reflect the result. Rush it and send it in, don’t expect a reply. Take your time, reference your work and use your knowledge to your absolute maximum and you will reap the rewards, trust me. The essay that you provide could change your life and start your career, and it did for me, so I urge you, if this is what you want to do, take advantage of this great opportunity and kick start your career as a quantity surveyor.

6. ANYTHING ELSE YOU WOULD LIKE TO ADD? I know that a lot of people see scholarships and think, someone else will get it, but if everyone had that train of thought then no one would apply, so be brave and at least have a go, I thought someone else would get it but look what happened. Try, endeavour, process, improve, finalise and submit and you will succeed. The only other thing I can say is that you need to believe in yourself that you are able and worthy of this, tick those boxes and nothing will stop you! Good luck!

YOUNG QUANTITY SURVEYORS (YQS) The Australian Institute of Quantity Surveyors (AIQS) sub-committee – YQS, represents AIQS members who are under the age of 35.

Each Australian national chapter has a YQS committee and/or representative whose role it is the represent the specific needs and of quantity surveying professionals under 35 and quantity surveying students.

The YQS Mission Is To: - Provide a certainty for and support the Quantity Surveying profession for the future.

- Promote the interests and opinions of Young QS’s on the AIQS board.

THE BUILDING ECONOMIST - JUNE 2016 - 37

WORKPLACE

A HEALTHIER WORKPLACE STATICS WELLBEING

Table 10: Workplace Wellbeing Workplace wellbeing increased in 2015 compared to 2014 but again has not returned to 2011 levels

Overall workplace wellbeing

Job Satisfaction (0-10)

Work-life balance Job Interesting Satisfaction (0-6) (0-10)

2.8 4.3

6.6

6.3

4.1

2.8

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3.1

3.1

Likelihood of unemployment (1-4 inversed)

4.1

Work-life balance Satisfaction (0-10)

4.3

Job Stressful (0-6 inversed)

6.3

Job Interesting (0-6)

6.6

Work-life balance Satisfaction (0-10)

Job Satisfaction (0-10)

Overall workplace wellbeing

AVERAGE

Job Stressful (0-6 Appropriateness inversed) of salary (1-5)

Likelihood of unemployment (1-4 inversed)

Each year the Workplace wellbeing survey has looked at wellbeing in the workplace, as work can be a significant contributor to stress, distress and a lack of wellbeing.

Workplace wellbeing increased in 2015 compared to 2014 but again has not returned to 2011 levels. Job satisfaction and work-life balance were also highest in 2011.

2.7 2.7

2.9

2.8*

2.8

3.2* 2.7

3.1

3.1

3.1

3.1

3.1 2.8

2.7

2.7

2.8*

3.0*

4.0

4.0

4.1*

4.0

4.0

6.3

6.2*

6.2

6.4*

6.3

6.5

6.3*

2015

4.3

4.2*

4.2

4.4*

4.3*

2014

6.3

2013

6.7*

2012

6.6*

2011

Statics provided by the Australian Psychological Society Health and Wellbeing in Australia survey 2015.

KEY INGREDIENTS FOR A WINNING TEAM EXPERT ADVICE FROM MARCO MANCESTI THE R&D DIRECTOR AT IMD So, you’ve got a great idea, the funding is in the bag, and your business model has been well crafted. Success is guaranteed, right? Wrong! According to research by serial entrepreneur Bill Gross, which he discussed in a recent TED talk, the two most important factors for success for start-ups are “timing” and “team.”

Similarly, in their book How Google Works, three senior executives at the company – Eric Schmidt, Jonathan Rosenberg and Alan Eagle – note that venture capitalists “will always follow the maxim of investing in the team, not the plan.”

Indeed, the previous mantra of “set the goal, plan and implement” is increasingly being replaced by a context-centric framework better adapted to a world characterised by more volatility, uncertainty, complexity and ambiguity. And in this world, human insight is needed more than ever!

It’s not just start-ups launching their first products on the market which face “critical moments.” Every company has them. More and more multinationals or entire industries have to transform their organisations from top to bottom following digital disruption.

But thankfully, what makes teams successful at start-ups can also be applied to large firms. Over the last 20 years, I have had the opportunity to directly hire and/or follow the performance of several hundred key employees working on strategic

initiatives. I have observed that when things go wrong, in most cases it is related to one or several of the following dimensions: Purpose, Integration, Knowledge, Ecosystem, and Self. Although we look at each dimension separately below, the whole is greater than the sum of its parts. This is particularly essential for task forces or teams in charge of key implementations.

PURPOSE The first dimension relates to an individual’s sense of purpose. It refers to the genuine and profound personal motivation of each team member to make the project a success. Motivation is different for each individual, but it has to be there, otherwise the risk of people dropping out when the team faces its first serious crisis is very high.

RISK The risk is having colleagues who only joins because ‘it will look good on their CV’ and then leaves as soon as the heat is on.

Nurturing: Encourage the team to share personal agendas and use every occasion to tangibly help their realisation, obviously provided there is alignment with the collective goal

INTEGRATION The second dimension addresses the degree of integration between team members, which is really about team maturity. In other words, the team should have a deep understanding of which tangible and intangible elements contribute to its cohesion – values, behaviours, and written and unwritten rules, such as reliability for example.

The concept of integration is central when hiring new team members. If the leader and the people interviewing don’t understand it fully, they will not be able to put together a high-performing team.

RISK The risk is that team members collaborate in a suboptimal way or, even worse, might ‘help’ colleagues fail – either actively or by omission.

When recruiting: Engage the whole team and then truly listen to all feedback this builds collective responsibility and augments the ability to spot toxic candidates, which are the worst nightmare in any organisation.

Nurturing: Encourage the team to share personal agendas and use every occasion to tangibly help their realisation, obviously provided there is alignment with the collective goal

THE BUILDING ECONOMIST - JUNE 2016 - 39

KNOWLEDGE This covers the mastery of key technical competencies required for the job or the specific initiative. It also includes soft skills. In addition, knowledge is about each person’s ability to bring novelty to the table. Beyond the obvious need for innovation, a team that does not have the potential for creativity runs the risk of lacking imagination when it comes to resolving complex problems.

RISK The risk is having a colleague who ‘just’ executes orders or is not recognised by key stakeholders as competent in his or her field.

looking, for example, for the ability to mobilise resources across the organisation and beyond, and to obtain support from key stakeholders.

RISK The risk is having a team member who systematically generates ‘antibodies’ when interacting with the wider community or higher management Nurturing: Keep analysing and adapting to both the ecosystem and the broader business context; keep training team members on soft skills.

FROM A MANAGEMENT STANDPOINT, HAVING THE RIGHT TEAM MEANS FIRST SELECTING IT AND THEN, IMPORTANTLY, NURTURING IT

When recruiting: Don’t be afraid of apparently unrelated skills – they can turn out to be useful for innovating.

Nurturing: Constantly look for gaps, measure the team’s credibility (even informally) and provide ad hoc training and development

ECOSYSTEM The fourth dimension relates to each individual’s capacity to understand the dynamics of the broader environment (e.g. the company and, more generally, the area of business) in such a way that the team can navigate and interact efficiently even during stormy weather.

From an outcome perspective, we are

SELF The fifth and final dimension is probably the least discussed in project management, but it is vital

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especially during the critical moments mentioned above. Uncontained stress has the potential to derail all the other dimensions. It is therefore crucial that strategic teams have stress management as a core competency and are fully aware of where weaknesses lie in order to be able to anticipate stressrelated challenges.

RISK The risk is having a colleague who ‘short circuits’ whenever stress increases, and damages previous effort and future perceptions.

Nurturing: The way to mastery is like sports training. Psychological preparation is key, as is being put repeatedly in situation.

Management simulation can also greatly help.

Last but not least, teams are like mirrors; they reflect the ability of top management to translate their vision into reality. So the pressure is on to choose the right people and then nurture them. The buzz phrase “people are our most important asset” really does say it all!

HILTI SHARES ITS SUCCESS’ Founded in 1941 as a small family business in the principality of Liechtenstein, Hilti has since evolved into a global workforce of over 22,000 people. The company’s corporate identity has always revolved around the values of courage, commitment, teamwork and integrity, with its unwavering commitment to its people reflected in the numerous employee-based accolades it has received. Hilti won the award for the prestigious Hewitt Best Employer accreditation for the fifth consecutive year – a feat unmatched by any other company in Australia.

by challenging complacency, providing tools and systems that support efficiency, and giving employees the flexibility to implement change within their roles.

In mid-year reviews there is a focus on discussing the benefits of change so that employees can understand how their role must evolve to support the business in alignment with market

movement and business priorities.

Other organisational initiatives that support Hilti’s learning culture include a marketing and sales innovation session that takes place three times a year, and a constant focus on reviewing internal efficiencies, as well as the products and services that the company offers.

What can we learn from Hilti Australia Encourage entrepreneurship Don’t make change for the sake of it Make diversity a priority

ENCOURAGE ENTREPRENEURSHIP Operating in an industry with rapidly changing technologies and needs, Hilti must be innovative and ambitious to keep pace. To drive this through its people, the organisation encourages employees to ‘think like an owner’ and the themes of learning and continuous improvement are strong components of its culture. Hilti employees are introduced to its culture from the outset of their employment via ‘Our Culture Journey’, an induction program that defines what they will experience as a Hilti employee.

Culture remains a constant focus throughout tenure and the organisation encourages entrepreneurial behaviours

THE BUILDING ECONOMIST - JUNE 2016 - 41

DON’T MAKE CHANGE FOR THE SAKE OF IT Having now been accredited as an Aon Hewitt Best Employer for the fifth time, it’s clear that many of Hilti’s people practices are working. While maintaining a focus on learning and improvement, the organisation is careful to hold true to practices and strategies that have proven to be effective. An example of this is Hilti’s approach to goal setting and how individual employees connect with the organisation’s strategy more broadly. Each year, the GM’s targets are set based on regional strategy, those goals are then cascaded to the Executive Management Team, to senior and middle managers and then ultimately, to all individual employees. This process has proven to be highly successful at aligning everyone within the business to the same focus and objectives. It has helped to ensure that employees at all levels understand how their dayto-day work can impact outcomes, and subsequently has helped the business to achieve those outcomes. Similarly, Hilti tries to maintain a clear strategy that doesn’t change significantly from yearto-year. Senior leaders believe that this way, the strategy becomes an ‘anchor’ which helps people to stay focussed.

MAKE DIVERSITY A PRIORITY Hilti prides itself on having a great mix of people.

The organisation’s employee base:

covers 38 nationalities Australia wide is above industry average for percentage of female employees. 20 per cent of its 320-strong Australian staff is female, while Hilti also boasts a 40 per cent female executive team. includes employees with varying lengths of tenure encompasses a broad range of different backgrounds, with many of its employees having had no prior experience in the construction industry.

“…DIVERSITY FOSTERS AN ENVIRONMENT FOR PRODUCTIVITY, INNOVATION AND ULTIMATELY, GREATER BUSINESS RESULTS

“Our selection process is designed to assess a candidate’s potential to progress and grow beyond the initial role they are appointed to,” says Kellie Warta, Talent Acquisition Manager at Hilti. “As such, we look for people who have quick learning agility, are passionate about working in a team, have strong work commitment and

42 - JUNE 2016 - THE BUILDING ECONOMIST

ambition to outperform. At Hilti, we have numerous inspirational success stories of female team members achieving outstanding results right across the business.”

Hilti recognises that diversity fosters an environment for productivity, innovation and ultimately, greater business results.

Diversity has become a key business strategy for the organisation as part of its Champion 2020 vision (strategy for the next 6 years). The organisation is focused on leveraging the diversity of its workforce and has started to lay the groundwork for an inclusive strategy to complement its diversity focus. As part of the first steps, Hilti is in the process of rolling out its global ‘Beyond Bias Training’ to help managers become aware of unconscious bias and how it may affect their communication, behaviour, and decisions.

THE BRIEF REQUIRED AN EFFICIENT, WELL PLANNED, LANDMARK BUILDING THAT COULD WITHSTAND THE UNPREDICTABLE WEATHER CONDITIONS OF CAIRNS

TO STAND THE TEST OF TIME The Trinity Anglican School’s (TAS) new science building is a high-tech facility designed by architects Charles Wright and built by Hansen Yuncken Construction. Located in Cairns, Queensland, the school was founded in 1983 and has since earned a reputation for exceptional academic achievement and service to the community. The school’s new science building, in which construction began in September 2014 and finished in early 2015, epitomises the high standard of teaching and innovative learning for which TAS is renowned.

The brief required an efficient, well planned, landmark building that could withstand the unpredictable weather conditions of Cairns. “We needed a supplied proprietary finish that was going to stand the test of time,” said Wright. “We came across ZAM® finish, a coating suitable for structural Purlins when we were researching the best coatings for the feature building facade.”

With this in mind, the Stramit C Purlins® were roll formed from ZAM® coated steel to provide greater corrosion resistance. The ZAM® coating complies as a Type ZM coating in Australian Standard AS1397 – 2011 and is a blend of zinc, aluminium (6%) and magnesium (3%). The Type ZM coating provides high corrosion protection in salty environments, resulting in a better durability in Cairns’ tropical climate compared to hot-dip galvanised steel.

The most visually striking aspect of the new facility, the helix twist, links the science building to the rest of the campus and is also featured in the design of the staircase. Inspired by the double helix shape of a DNA molecule for the innovative facade of the building, this was built using Stramit C Purlins®, which were moulded to form a three-dimensional, steel wound exterior for the senior science building. “Stramit ZAM® gave us a new look to steel that had not previously been available.

TAS’s new science building integrates impressively into the school’s previous landscape, and the end result is an innovative facility that serves as a benchmark for educational buildings in tropical latitude areas.

THE BUILDING ECONOMIST - JUNE 2016 - 43

4 STAR GREEN STAR PERFORMANCE PILOT

OLDER BUILDINGS CAN GO GREEN Sydney Opera House, Sydney

When designing the Sydney Opera House more than 40 years ago, Jørn Utzon was inspired by nature and integrated many features now recognised as pioneering sustainable design. An innovative seawater cooling system still powers the main heating and air-conditioning, while an early interpretation of the ‘chilled ceiling’ design remains in the Drama Theatre today to help control the venue’s air temperature. This technology has provided a great foundation for the sustainability improvements that have followed, including a two-year program of lighting upgrades in the Concert Hall which slashed energy consumption by 75 per cent, and is saving around $70,000 per year in electricity costs.

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The GBCA’s Chief Executive Officer, Romilly Madew, says that the Opera House’s certification sends a signal to the market that older buildings can go green.

“The general consensus has been that it’s ‘too hard’ to improve the sustainability of older buildings. The Sydney Opera House has laid down the gauntlet for the property industry with a pragmatic, practical approach which shows even the most iconic, historic and challenging buildings can be high-performing, energy efficient and sustainable. If you can green the Opera House, you can green anything,” Ms Madew says.

October 09-12, 2016 Rio de Janeiro - Brazil

10th Cost Engineering, Quantity Surveying and Project Management World Congress Realization: International Cost Engineering Council

Co-realization: Royal Institution of Chartered Surveyors

Suport:

UniĂłn Panamericana de Asociaciones de Ingenieros

Honduras

BolĂ­via

Alemanha

Argentina

Sociedade Brasileira de Engenheiros Florestais

sbef

www.icec2016.com Information: contact@icec2016.com

Cabo Verde

Registration Open!

SOCIALS

THE AIQS DONALD CANT PRIZE

Deakin University, Melbourne 11th May, 2016

Congratulations to Roxanne on receiving the AIQS Donald Cant Prize award!

The AIQS Donald Cant award was made to the highest achieving student completing Quantity Surveying subjects as part of their Deakin University Construction Management degree.

DEAKIN UNIVERSITY NETWORKING EVENING Melbourne 27 April, 2016 AIQS/ YQS representatives attended the Deakin University networking night on 27 April, 2016 which was a successful evening where we fielded many enquiries in regards to the Institute in particular the YQS.

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2016 PAQS CONFERENCE

Christchurch, New Zealand 20-24 May, 2016

The New Zealand Institute of Quantity Surveyors (NZIQS) recently hosted the 2016 PAQS Conference in Christchurch.

The city, still undergoing extensive rebuilding following earthquakes in 2010 and 2011, provided the perfect backdrop for the conference and its theme ‘Building for the Future – A Global Dilemma’.

Delegates heard keynote speeches from those directly involved in the earthquake aftermath and rebuilding, including Sir Bob Parker, the Mayor of Christchurch during the disasters, and Hugh Nicolson, the principal urban designer at Christchurch City Council. Other highlights included presentations from Peter Hillary on uncertainty and change,

Shamubeel Eaqub, a leading economist and the BIM Panel featuring AIQS members, David Mitchell and Andrew Brady.

In addition, our YQS representatives were hosted over a 2-day program. The AIQS also participated in a number of meetings in Christchurch to strengthen our ties with professional associations across the Pacific region and to discuss the future of the Quantity Surveying profession.

The successful event was capped off with a Gala dinner hosted at the airforce museum within the air craft hall.

AIQS will host the ICEC-PAQS Conference in 2018 visit www. icecpaqs2018.com for more information.

The event, presented by Mr Mark Bray, Director for Victorian and Tasmanian Regions at Aquenta Consulting, was a sell out event with over 55 attendees and a healthy waiting list.

Mark’s presentation discussed the importance of correctly establishing, from the outset, the contract and supporting information to achieve the best outcomes for all stakeholders.

Mark brought many insights from his experience and delivered an engaging presentation to the audience

PROJECT PROCUREMENT CPD

Victorian Chapter 18th May, 2016

THE BUILDING ECONOMIST - JUNE 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- JUNE 2016 - THE BUILDING ECONOMIST

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