The Building Economist - September Edition

SEPTEMBER 2019

The text pages of this publication have been printed on paper manufactured in Australia and produced from responsibly managed forests.

3 BUILD ENVIRONMENT COST PROFESSIONALS BRING DIGITAL INNOVATION TO THE FORE

14 CARBON VALUE ENGINEERING: REDUCING CARBON AND COST IN BUILDINGS

22 FLEXIBLE WORKING ARRANGEMENTS

36 THE FIRST 48 HOURS MATTER

CONTENTS 2 CEO Letter

28 Using VR to Assess Willingness to Pay for Green

3 Built Environment Cost Professionals Bring Digital Innovation to the Fore

Infrastructure in Swedish Residential Development 36 The First 48 hours Matter

9 What Makes a Reliable Quantum Expert?

39 The Procurement and Costing of Modular Integrated

14 Carbon Value Engineering: Reducing Carbon and Cost in Buildings

Construction in Hong Kong 44 Combustible Cladding and National Implications:

19 Cashing in on the Infrastructure Boom, But at What Cost?

22 Flexible Working Arrangements

Leading the Way 48 Building Construction Index (available in print edition only)

About The Building Economist is the flagship publication of Australian Institute of Quantity Surveyors (AIQS). Produced quarterly, The Building Economist seeks to provide information that is relevant for quantity surveying, cost management and construction professionals.

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Contribute AIQS encourages readers to submit articles relating to quantity surveying, the built environment and associated industries including; construction economics, cost estimating, cost planning, contract administration, project engineering. Contact AIQS.

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Contact at AIQS Anthony Lieberman Communications and Marketing Manager T: +61 2 8234 4009 E: marketing@aiqs.com.au

Disclaimer AIQS does not take any responsibility for the opinions expressed by any third parties involved in the writing of The Building Economist.

ISSN 0007-3431

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 1

CEO LETTER

approach to construction industry reform, centred on recommendations in the Shergold-Weir Building Confidence Report, was finally agreed upon.

One key recommendation of the Shergold-Weir Report is the registration of professionals involved in the building process — from builders and site managers to architects and building inspectors. As yet, it appears that the quantity surveying profession may have escaped inclusion in these provisions.

As a consequence of the failure of self-regulation across much of the construction sector in Australia in recent years, changes in the regulatory environment for the broader construction industry are imminent.

Covered thoroughly in the media over recent months, the construction industry in Australia is being scrutinised from every angle, at all levels, by Governments, the general public, financial institutions, and from within. Structural issues within the industry and the encompassing regulatory environment have surfaced as literal cracks in several multi-residential apartments, exposing the construction industry to heightened levels of risk – financial and public distrust.

We are now seeing positive steps being taken to tighten the regulatory environment and compliance, which in turn should result in increasing quality.

At the Building Ministers’ Forum held in July 2019, a nationally consistent

Australian Capital Territory Government is examining a proposal for licensing developers as a mechanism for improving payments to builders and sub-contractors, curbing phoenixing by some developers, and minimising building defects.

The Australian Building Codes Board (ABCB) has advised they will be revising their strategic plan in light of the current challenges. The ABCB will expand to include greater representation and engagement from industry.

With the above-mentioned strategies in play, there is still more work to be done.

Unfortunately, the industry is plagued with unrealistic time frames and a race-to-the-bottom in fees to secure a contract. Whilst there may be an impact on time and cost, the ultimate goal should be to produce quality buildings in compliance with the Building Code.

One emerging solution to the building defect issue is the appointment of an independent Clerk of Works, reporting to the Building Commissioner, to:

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• ensure building works are completed in accordance with approved design specifications • report on variations • measure and sample building materials to check their quality • monitor and report on progress to construction managers, architects and clients • keep detailed records • liaise with contractors, engineers and surveyors • check that standards, building regulations, health and safety, and legal requirements are met.

An alternative is for certified quantity surveyors to deliver a performance audit role similar to that currently undertaken on Public-Private-Partnerships.

AIQS continues work to raise the position of the quantity surveyor as the principal consultant to construction projects.

Given the level of risk (financial and quality) and compliance associated with construction projects, the quantity surveyor is best suited to advise the client directly from project inception.

Grant Warner

CEO Australian Institute of Quantity Surveyors

DIGITAL INNOVATION

BUILT ENVIRONMENT COST PROFESSIONALS BRING DIGITAL INNOVATION TO THE FORE QUESTIONS AND ANSWERS

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 3

DIGITAL INNOVATION

Q1: THE CONSTRUCTION INDUSTRY IS CURRENTLY WELL BEHIND OTHER INDUSTRIES IN TERMS OF DIGITAL INNOVATION. IN YOUR OPINION, HOW CAN BUILT ENVIRONMENT COST PROFESSIONALS ENCOURAGE AND RAISE THE USAGE LEVELS OF DIGITAL INNOVATION IN THE CONSTRUCTION INDUSTRY? Brett Mason: One of the greatest challenges of our industry as a whole is that we have been resistant to change.

We need to encourage leveraging the technology we have on hand today to build faster and smarter by reducing the layers, duplication and outdated processes we’ve stuck to for too long.

The biggest opportunity, for not only cost professionals but everyone across our supply chain, is to leverage the advances in virtual design and construction (VDC). By harnessing digital twin models through BIM and accessing real time, meaningful live data we can more accurately cost plan and program as well as mitigate issues and risks long before we commence building.

Nick Deeks AAIQS: The Australian construction industry’s digital innovation is in the dark ages compared to countries around the world and other industries.

This lack of digital innovation is occurring at a time when our population is rapidly growing, and our cities have an immense pipeline of projects to meet the demands of our society. However, the skills gap in our industry is jeopardising the development of our cities.

To ensure we are able to future-proof our cities, the industry needs to urgently embrace and invest in digital innovation.

Built environment cost professionals needs to focus their business strategies, development and investments into digital

innovation to create a cultural change that will help advance our industry.

We need to change our mindset from fear when it comes to digital technology, AI, automation and robotics and instead realise the massive potential digital innovation has in unlocking greater efficiencies, productivity and predictive capability.

Sarah Slattery AAIQS: Terms such as digital innovation and disruption are not new to our industry. Whilst we at Slattery continue to embrace new solutions to meet our clients’ needs, we believe the industry’s struggle to adopt new ways of working is the fear of change. The concept that we can use technology to undertake tasks more efficiently is a threat to many. What will my role be if automation takes my place? The other issue is trust. Similar to designers, cost professionals rely on their knowledge and experience to produce reliable deliverables. Much of the digital innovation available to cost professionals (i.e. 5D BIM) takes considerable time and investment to ingrain in a business.

In the meantime, cost professionals will naturally revert to their tried and tested methods of delivering. This is of course not limited to the world of cost management, it is endemic across the construction industry and beyond.

To improve the uptake in digital innovation, we must begin to remove these barriers of fear and distrust.

We can only do this by educating ourselves and each other on the digital opportunities available, and how they can benefit both our and our clients’ businesses. This requires industry and business leaders to put this front and center of their organisation’s strategy and invest accordingly. It can’t be seen as a side project that the tech person in the organisation will solve on their own. At Slattery, we have a national innovation

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committee, comprising of Directors through to Graduates. We are constantly looking at what our clients’ current challenges are, and how they may evolve in the future, to see how we can continue to embrace digital in our business.

Gary Crutchley FAIQS: This is a very broadly worded question as it could relate to digital innovation in the design/ cost management process both preconstruction and during construction. It could also relate to embedding digital innovation in the building through ‘smart systems’ to ultimately end up with a more efficient (energy and cost efficient) and more fit for purpose building.

Both of the above relate to quantity surveyors as we ultimately want to see efficiency in construction and efficiency in the final product (which will stand for 50 years and have a greater impact).

To encourage and raise the usage levels of digital innovation in the design and construction process, the following could be considered: • Uniform platforms to allow for easier sharing of information.

• A collaborative approach rather than a competitive approach with design and cost management professionals.

• A serious education on software incorporated in tertiary education programmes. We’re often surprised at the apparent lack of knowledge of estimating software of university graduates. (Even knowledge of something as simple as Excel is often lacking.)

To encourage and raise the usage levels of digital innovation in the final built product the following could be considered: • There is usually too much emphasis on capital cost and lifecycle cost and cost in-use takes second place. This

DIGITAL INNOVATION

occurs in both the public and private sectors and is often the result of budgets being pre-determined.

• Government needs to seriously set an example by allowing sufficient funds for ‘smart buildings’.

• We need to be realistic and not just jump onto the latest technology.

Prof. Chitra Weddikkara FAIQS: In the Construction industry the professionals who are involved in designing, estimating and construction are architects, engineers, cost professionals and constructors. Most importantly, the first professional who needs to be innovative and use digital innovation in the pecking order are the designers/architects, engineers and then cost professionals. But at present, the usage of digital innovation such as 2D – 5D BIM is very limited. This limitation is mainly due to the high cost of acquiring such software. In my opinion, we need to further encourage and teach cost professionals providing them with the opportunity to see the value of BIM. These learnings and shorter timelines will give a competitive edge to the cost professionals.

Ben O’Rourke: As an industry we should place innovation at the heart of what we do, and while there are aspects that construction leads the way in, I believe, we are naturally a little risk adverse with it comes to embracing new technology especially in the digital space.

We have the opportunity to look at what is being used in other industries to learn from and engage with tech that has the potential to be adapted to our industry and improve outcomes, both in terms of financial and timemanagement key indicators.

Built environment cost professionals have an important part to play in this by not just looking at the bottom-line but through pricing what’s not drawn, translating concepts and considering contract risk profiles in pricing. Their contribution to ensuring that the art of this is not lost and becomes more crucial as we build a heavier reliance on BIM.

Mike Cox AAIQS: Most professionals are aware of the problem, but are not equipped with the data and tools to advance the art. With well implemented and accessible data warehouses and analytic platforms, cost professionals will be able to leverage technology to make more informed decisions around the construction cost data they are responsible for.

Brett Mason Managing Director, Built

Nick Deeks AAIQS Managing Director, WT Partnership (Australia & New Zealand) Sarah Slattery AAIQS Managing Director, Slattery

Gary Crutchley FAIQS Q2: WHAT DIGITAL INNOVATION HAS YOUR FIRM ALREADY IMPLEMENTED? Brett Mason: We have invested in customising smart software as well as developing our own apps to digitise more of our processes. For example, we have rolled out Fieldwire across our business to give our teams access to real time plans onsite via mobile devices and also introduced point cloud scanning and 360-degree cameras to more accurately portray the typically brown field sites that we build in.

We are also further investing in digital design and construction capability across BIM software integrations, using models to produce quantities or bulk check data. We’re using visualisations and in some instances employing virtual and augment reality to better communicate and collaborate with teams, consultants and clients. This has been particularly valuable in issue tracking and working through problems before they happen.

Director, Wilde and Woollard

Prof. Chitra Weddikkara FAIQS Managing Director, Q Serve Ben O’Rourke Chief Executive Officer, Watpac

Mike Cox AAIQS Director, Victoria, National Director, Cost Management, Currie & Brown

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 5

DIGITAL INNOVATION

Nick Deeks AAIQS: We strategically focus the company on the future and from there we have heavily invested in digital innovation that improves and advances our business.

We have developed a post contract software tool, a new cost estimating software, we are working on App development and investing in AI companies.

WT recently formed a global alliance to implement world-leading AI technology, Octant AI, a machine learning tool that gathers and analyses project performance data to produce improved insights. This will tackle project time and cost overruns.

Sarah Slattery AAIQS: Slattery were early adopters of the use of 5D BIM, however we have not seen the pace of acceleration we expected of projects with coordinated and usable BIM models for quantification. We are currently investigating the reasons for this and will be hosting workshops with designers and consultants to unlock the problems that they are facing.

In a world where clients demand more evidence-backed cost data than ever before, we have invested heavily in refreshing our in-house cost benchmarking system. Using software such as Uniphi and Power BI, we are now able to harvest the enormous amounts of cost data that we have quicker and more efficiently than before. We are then able to present this to clients in a consistent and concise manner, ultimately adding greater surety and confidence in the cost control process.

Gary Crutchley FAIQS: We have CostX with the full suite of add-ons. We are investing heavily in the benchmarking

add-on. We have a collaborative group with a nominated representative from each interstate office to advance and explore new technologies.

We are currently exploring fully integrated document management systems.

Prof. Chitra Weddikkara FAIQS: In order to have competitive edge, Qserve has acquired number of measuring digital software such as Cost X to expedite measurement. Also, we have asked construction schools in Sri Lanka to teach students measurement programs using Cost X and BIM.

Ben O’Rourke: BIM has been enthusiastically embraced across our industry and at Watpac we have taken this a step further through the use of VisualLive® and their Mixed Reality (MR) technology. This technology combines virtual reality and augmented reality to allow the seamless integration of BIM onto our job sites providing our teams with the tools to see how a model fits with the real-world environment.

This means our consultants and contractors can walk through the design and experience it virtually. We are also noticing significant cost and time benefits for our projects because our teams now carry out field inspections through true scale hologram projections.

We can identify discrepancies between the design and installed conditions such as routing issues and future physical clashes much earlier in the project. It allows the design team to address these discrepancies virtually without having to undertake costly rework and field modifications if they had been identified at a later stage.

We are also noticing benefits when

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validating and verifying installations against ‘as constructed’ documents as these can be carried out without using more expensive traditional methods.

Mike Cox AAIQS: Our company has developed and are using a number of inhouse data analytic platforms to gather, track, trend and analyse cost data over our diverse set of clients. Today, these data systems help inform cost forecasting by leveraging both historical and current data trends to improve the accuracy of cost planning. These systems also enable analysis of project tenders to find pricing irregularities that deviate from current market trends.

Q3: HOW IS YOUR FIRM POSITIONED TO ADOPT DIGITAL INNOVATION INTO THE FUTURE? Brett Mason: One of the most important aspects of innovation is to have it embedded in your people and culture.

We have always understood this so innovation isn’t new to us, we have always aimed to challenge industry norms and do things differently and one of our core values is to embrace change.

Close to two years ago we created Built Labs, comprising of our own internal team of developers and digital specialists to focus on transforming how we operate through digitisation. We are also investing in our people by empowering our inhouse VDC specialists to educate and upskill our teams and clients to take advantage of the benefits of virtual twin models and real time data to make better, smarter decisions.

We have also committed to invest between 10-20% of our profits into R&D, compared to the average for our industry which is less than 0.5%.

DIGITAL INNOVATION

Nick Deeks AAIQS: Since reinvigorating our business into an agile forwardthinking expansive corporation, we have significantly strengthened our ability to adopt and also develop digital innovation. We continue to research advanced technologies, robotics and artificial intelligence in our service through partnerships with other businesses and our own in-house experts and data scientists.

At WT, we want to create a strong culture around innovation and break the stigma around the role of a traditional quantity surveyor, we have an Innovation Excellence Committee that meets monthly to look at implementing forward thinking concepts for our business.

Sarah Slattery AAIQS: We have made a deliberate attempt to create a culture of innovation at Slattery, and digital remains a core part of this. We employ the brightest minds and recognise that we must not only allow, but encourage, all of our staff to have a voice when identifying new ways of working and solving our clients’ problems. However, we recognise that we cannot do this alone and have plans to collaborate with our clients and other consultants to identify challenges and opportunities in the digital space.

Whilst there is an obvious time lag in the construction industry adopting digital innovation, it will come. We are making sure that we employ the best people in the industry to embrace it. Our people will always be our most valuable asset, who will harness the power of digital to continue to deliver excellent client service.

We are excited about the next chapter at Slattery as we continue to grow.

Gary Crutchley FAIQS: We have a formulated budget included in our business financial planning to allow for digital innovation. We make a conscious effort to employ personnel with a high degree of adaptability and a desire to innovate. The Directors are very conscious of the need to innovate, adapt and explore.

Prof. Chitra Weddikkara FAIQS: I think we are reasonably poised for the future in adopting of digital innovations. Our young professionals are quite savvy in the use and are very interested. However, construction industry professionals are slowly adapting to digital innovations and this needs a push.

people, we place ourselves in a better position as a contractor and employer of choice for the future.

Mike Cox AAIQS: Currie and Brown has a number of data analytic professionals currently working with construction cost information today. We will continue to leverage and grow these services, tools, and methods to provide best in class services to our global client base.

Ben O’Rourke: Technology will affect how we do business well into the future, so our focus is on creating opportunities for our people to investigate and engage with digital technology.

With Watpac now part of the BESIX Group, we have the benefit of significant in-house design capabilities in Brussels and Dubai, and we are starting to invest in this capability locally. Digital innovation particularly in design is at the forefront of what we do, and this extends to BESIX supporting entrepreneurial endeavours such as PhD students building algorithms for computers to design standard bridge components, so focus of design is on interface with ground conditions rather than standard structural components.

Technology is driving all aspects of industry now more than ever and this is rapidly becoming a key capability in the eyes of clients and employees. By embracing this shift and skilling up our

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 7

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EXPERT WITNESS

WHAT MAKES A RELIABLE QUANTUM EXPERT?

A QUANTITY SURVEYOR’S PERSPECTIVE

"

By Stephen Bolt MAIQS

The role and impact of expert witnesses, whether quantum, delay or technical, is crucial where high-value disputes hinge on the interpretation of complex issues which require specialised knowledge. The timing and selection of an appropriately qualified expert is a critical part of the dispute resolution process, however it’s also a process riddled with conflicts and contradictions."

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 9

EXPERT WITNESS

DEMONSTRATING IMPARTIALITY An expert witness must be impartial – but from a practical perspective, how can this be possible when one party to the proceedings is clearly paying their fees? The reality of this contract is very different to the perception it creates of an expert being engaged to work in favour of the client, espousing the good news and hiding the bad. Any brief that does not acknowledge the true role of the expert as impartial should be avoided.

The practice of law is one of advocacy.

Expert witness work is not. The employer-employee paradigm can unknowingly influence an expert, who must not succumb to the pressures of advocacy, but rather convey their expertise and opinion in an unbiased manner. They must also remain true to their understanding of the facts, irrespective of the potential impact to their client’s case. An expert’s duty is first and foremost to the court, which overrides any obligation to the party liable for the payment of fees.

Case law casts a heavy shadow on experts who fail to act impartially and assume the role of an advocate. In the seminal case commonly referred to as the Ikarian Reefer, the judge summarised the duty of an expert as being “impartial, objective, unbiased and uninfluenced by the pressures of the dispute resolution process or by any party" ¹.

A credible expert witness should therefore: • Be, and be seen to be, independent,

unimpeded and uninfluenced in form or content by the exigencies of litigation when providing evidence • Provide independent assistance to the court by way of objective and unbiased opinion in relation to matters within their sphere of expertise and should never act as advocates² • State the facts or assumptions upon which their opinion is based and demonstrate they have considered all material facts which may detract from their concluded opinion • Always make it known if questioned on an issue that is outside their sphere of expertise (if in doubt, it probably is) • Consider that if there is insufficient material available to commit to an opinion, they should indicate that their opinion is subject to further evidence being made available • Be sure that their report is truthful.

After all, if you testify in court it’s under oath • Be free to change their opinion if the underlying facts or assumptions change, but if an opinion changes, it must be communicated to the other side without delay.

STAYING WITHIN THE REMIT An expert’s credibility can be undermined when an expert opines upon matters beyond their jurisdiction.

My occupation, as a quantity surveyor,

has provided me with a robust working knowledge of construction contracts.

But as a quantum expert, I am a quantity surveyor who provides my opinion on matters of construction costs for the benefit of the tribunal. The correct interpretation of a contract is best left to the legal profession, particularly where a dispute may turn on the drafting of a clause.

It can be tempting for an expert to explore all the facts and evidence in order to advance an argument that they consider best promotes their client’s case or adds credence to their own expert opinion. However, it only makes the expert appear to be partisan for their opinions, which is likely to render them less reliable as an expert.

An expert will often have to consider alternative opinions from other technical experts. It is not the quantum expert’s role to consider which solution suits the instructing parties’ case – rather, the expert should assess all options advanced so that full consideration can be given to alternative opinions.

An expert will typically summarise the substance of their instructions in their report and any instructions given prior to those referenced in the expert report may become disclosable. The most welcome instructions are drafted in a neutral tone without commenting on or implying the merits or strategy in relation to matters of quantum, as this may be prejudicial.

In summary, an expert has one role, which is to adhere to their brief and convey their expertise.

¹ National Justice Compania Naviera SA. v Prudential Assurance Company Limited [1993] ² Polivitte Ltd v Commercial Union Assurance Co. Plc [1987] 1 Lloyd’s Rep 379 at p386 per Garland J and Re J [1990] FCR 193 per Cazalet J).

10 - SEPTEMBER 2019 - THE BUILDING ECONOMIST

EXPERT WITNESS

POTENTIAL OR ACTUAL CONFLICT OF INTERESTS An expert should have no actual or apparent interest in the outcome of proceedings in which they give evidence.

While an expert must make express statements regarding their awareness of and compliance with specific codes of conduct, no specific reference is required in relation to potential conflicts of interest. It is always best practice, however, to confirm in one’s report that no such conflicts exist.

The primacy of the expert’s independence is recognised in the International Bar Association Rules on the Taking of Evidence in International Arbitration (IBA Rules of Evidence), which require expert reports to contain a statement of independence from the parties. The IBA Rules also contain a duty to disclose any existing or past relationships with any of the parties, legal advisors or the tribunal.

Upon a conflict of interest becoming apparent, which renders it inappropriate or impractical for the expert assignment to be undertaken, the withdrawal must be communicated as soon as it is reasonably practical.

In the Toth v Jarman case³, the court was close to concluding that a relationship between a party and an expert was close to the extent that the expert’s evidence should not be admitted. The Court of Appeal found that the presence of a conflict of interest did not automatically

disqualify an expert. The major question was whether the expert’s opinion was independent of the parties and the pressures of the litigation. It is therefore important for an expert to disclose any potential conflict of interest at the earliest possible point in the case – ideally prior to service of the expert report.

Appointments that provide for any form of conditional or success-based payments contingent upon the outcome of a case should not be undertaken under any circumstances. In the O’Leary v Mercy University Hospital Cork Ltd case⁴, the appellant alleged that there was a conflict of interest from the level of the respondent’s expert’s remuneration.

It was suggested that the level of renumeration charged and agreed upon could introduce a conflict of interest and thereby breached the right to a fair trial.

His submission was that by agreeing to pay such fees, the respondent was inciting the witness to give partisan evidence. The court agreed with the appellant and the case was dismissed at the appeal.

Well-drafted fee proposals should cover the expert’s terms of engagement (including the basis upon which fees will be charged) and any other specific mandates relating to potentially contentious issues, which should eliminate any suggestion of a conflict.

It is imperative that an expert should produce their CV when serving their report and should be sufficiently transparent by providing details of any

work or employment which might give rise to a perceived conflict of interest.

Experts are not just cross examined on their report – their CV may provide fertile ground for counsel.

In summary, it is preferable that an expert should have no actual or perceived interest in the outcome of proceedings in which they give evidence. Any possible conflict should be declared at the earliest possible opportunity, so the disputing parties can consider the implications that may arise.

THE BALANCE OF PROBABILITIES “The balance of probabilities is the requisite standard of proof by which a trier of fact (usually a magistrate or judge in civil proceedings) must determine the existence of contested facts”⁵. This is distinct from criminal law, where the burden of truth in a trial is stated as “being beyond reasonable doubt”.

So what is the difference between succeeding on the balance of probability or failing? In one case Lord Denning said, “If the evidence is such that the tribunal can say ‘we think it is more probable than not’ the burden is discharged, but if the probabilities are equal it is not” ⁶.

The balance of probabilities is therefore a reference to the likelihood of one party’s version of events being more probable to have occurred than not. The expert must therefore consider all the evidence in a consistent and balanced manner and opine on the matters based on credible

³ Toth v Jarman [2006] EWCA Civ 1028, the Court of Appeal of England and Wales (Potter P., Arden and Wall LJJ.) ⁴ O’Leary v Mercy University Hospital Cork Ltd [2019] IESC 48 the Supreme Court of Ireland ⁵ https://sklawyers.com.au/dictionary/balance-of-probabilities/ ⁶ Miller v Ministers of Pensions [1947] 2 All ER 372

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 11

EXPERT WITNESS

and objective observations.

This also extends to the behaviour of an expert in a conclave, the contents of a joint statement and the performance of an expert when giving evidence under cross-examination.

BEING OBJECTIVE It is not uncommon for an expert to be engaged in matters prior to disputes formally crystallising. This early involvement can be of great benefit when prospective advice may prevent an ill-suited and costly action; lawyers (and experts) do not come for free, after all. However, an early strategic role can add complexity to an expert’s perceived impartiality, particularly when asked to subsequently provide independent evidence to the tribunal. There is a risk that the expert may be perceived as a “hired gun” lacking the required impartiality demanded by the tribunal.

Frequently, the instructing parties will rigorously test the experts to ensure that they have been objective and have appropriately considered the explanations, contrary views, clarifications and qualifications provided by an opposing expert. The expert’s instructing party may well ask if the expert would express the same opinion given the same instructions by the opposing party. This will also give the instructing party an insight as to how the expert may perform in court in the event the expert testifies.

Being objective means the expert

has considered the opposing views/ arguments and is prepared to explain why their opinion is preferable. Experts who do not adopt this philosophy and ignore evidence (which is not helpful to their own party’s case), or consistently choose an interpretation or approach that gives their instructing party the benefit of the doubt, run the risk of less weight being attached to their evidence.

appreciate the subtlety of an argument because it is awkwardly drafted, technically complex or just onerous. A well-written report that clearly sets out the arguments in a structured format will always serve the expert well. For me, my barometer of success in this regard is that if I know our graduates can understand it, then I have achieved my objective.

A client’s legal representatives may be inclined to strategically find experts suited for their case and provide very specific instructions, which ultimately influences the type of information contained in reports. It is important that the expert protects their credibility to the extent that if they are uncomfortable with the instructions, they should discuss their concerns or withdraw from the potential commission.

Where expert evidence refers to drawings, forensic analyses, photographs, measurements, survey reports or other similar documents, these must be provided as part of the exchange of reports. There is a tendency in recent times to deliver such material in “unfriendly” formats on the premise that formulae and the like contained in the analyses are to be protected, as it is considered intellectual property. In my opinion this practice does not assist the parties in resolving their dispute and increases wasted costs as work is unnecessarily replicated between the parties.

Credibility is always the key consideration. An expert’s lack of credibility may bring into question other aspects of the client’s case.

A SUCCINCT AND CLEAR REPORT An expert report should be succinct, focused and analytical, and based on all the evidence available. It should be drafted in a way a layperson, who does not have the same technical knowledge as the expert, can understand.

There may be a temptation, perhaps driven by ego, for an expert to produce complex reports filled with technical jargon. Experts must avoid adding further complexity to a case. An opinion may be discounted if a judge fails to

12 - SEPTEMBER 2019 - THE BUILDING ECONOMIST

CONCLUSION Expert witnesses assist in understanding nuanced and complex information, they provide a sense of objectivity to the proceedings against a background which is fraught with potential conflict and contradictions where the importance to remain impartial and professional, above all else, is critical in conveying an opinion that stands up to the vagaries of cross examination.

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CARBON VALUE ENGINEERING

CARBON VALUE

ENGINEERING: REDUCING CARBON AND

COST IN BUILDINGS "

By Philip Oldfield, Associate Professor in Architecture, UNSW and Mehdi Robati, Research Associate, UNSW

This provides the quantity surveying industry with a notable role to play in the reduction of carbon emissions from our built environment.�

14 - SEPTEMBER 2019 - THE BUILDING ECONOMIST

CARBON VALUE ENGINEERING

EMBODIED CARBON IN THE BUILT ENVIRONMENT Globally, we are about to see the most substantial building boom in history. As our urban populations increase rapidly in the coming decades, so too will the need for comfortable and sustainable buildings. In Australia it is suggested that 51% of all buildings standing in 2050 will be built after 2019 – so will be new buildings (ASBEC, 2018). At the same time as this construction boom, we need to be radically reducing our national greenhouse gas emissions to achieve carbon neutrality and meet the Paris Climate Change Agreement. Given that buildings are responsible for around 40% of greenhouse gas emissions, this reduction, occurring simultaneously with increased construction, will represent one of the greatest challenges of the twenty-first century.

When we think about carbon emissions in buildings, typically we focus on emissions from operating the building; those due to artificial lighting, heating, cooling, and conditioning the building over its effective life. However, buildings also contribute to greenhouse gases through their materials and construction. This is called ‘embodied carbon’. Historically, it’s been reported that embodied carbon typically makes up around 20% of a building’s carbon footprint, although this has varied in studies from 10%, to close to 100%, depending on the build type, and how the emissions were measured.

However, given recent improvements to energy efficiencies, it is suggested that a modern building will have an embodied carbon that is responsible for 40% of its carbon footprint, with operational emissions contributing 60% (Sturgis,

2010). As we improve the performance of our buildings in the future, and increase their energy efficiency, the relative contribution of embodied carbon is likely to grow further still.

With this in mind, researchers at UNSW, the CRC for Low Carbon Living and Multiplex set up a project to explore how we could reduce embodied carbon emissions in buildings. In particular, we were interested in how we could adapt an established industry practice – Value Engineering (VE). VE is a practice where cost reduction and constructability are optimised as part of the design process.

As VE can assist in dematerialising a building, we wanted to measure to what extent can VE reduce embodied carbon in buildings. And more than this, to what extent can the process of VE be adapted to maximise the reduction of embodied carbon while also reducing cost?

THE CARBON IMPACT OF VALUE ENGINEERING The first part of our study explored the embodied carbon impact of conventional VE practices. A case study building that had been through VE was used to document this impact.

The building consisted of two blocks, 18 and 20 storeys above ground, with a substantial basement, sited in Sydney.

Its program accommodated a mix of offices, shops and residential units. The building design had been through a VE process to optimise capital cost and constructability, with changes focused on the rationalisation and optimisation of the building structure, and alternative internal and external finishes and fittings.

The research used the bill of quantities

to measure both the capital cost and embodied carbon before, and after, value engineering. The scope of the study included the CO2-e emissions associated with the extraction of raw materials, manufacturing, and processing of the building components, also known as ‘cradle-to-gate’. Data for the embodied carbon of materials was provided by the CRC for Low Carbon Living (Wiedmann 2017; Teh, 2018) while cost data was drawn from Rawlinsons (2017). The scope of the study included all building elements but excluded services (both mechanical and electrical).

The results found the building had an initial embodied carbon of 44,601tCO2-e, or 528kgCO2-e/m² prior to VE. After VE, the initial embodied carbon was 44,038tCO2-e, or 521kgCO2-e/m². This equates to a 1.26% saving of embodied carbon. Material cost savings were in the order of 0.72%. While such savings are small, they are not insignificant and demonstrate the potential carbon impact of VE. Although, it should be noted, in this case study most VE changes were limited to the structure and finishes and didn’t effectively impact the operating performance of the building. Where VE strategies reduce the building fabric performance, or the efficiency of systems, there may be an embodied carbon saving in the first instance, but this would likely be offset by increases in operational carbon over time.

AN ALTERNATIVE MODEL: TOWARDS CARBON VALUE ENGINEERING The second part of the study explored how far can we reduce the building’s embodied carbon while also making cost

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CARBON VALUE ENGINEERING

savings. This involved the development of a ‘Carbon Value Engineering’ framework. This is a quantitative value analysis method which not only estimates cost, but also considers the carbon impact of alternative design solutions.

We use Pareto principles (also known as the ‘80/20 rule’) to identify the significant contributors to embodied carbon and capital cost of the building. This involves identifying the 20% of materials that contribute to 80% (or as close there to) of the carbon emissions and capital costs.

Once this is known, the design team can focus on simultaneously reducing cost and carbon using dematerialisation or alternative materials.

To explore this new Carbon Value Engineering method, we took the 18-storey block from the previous study, and the scope was extended to also

include embodied carbon emissions from transportation, material and component replacement and eventual disposal. Analysis showed the biggest contributor to cost and carbon was the structural system. As such, alternative structural strategies were designed and simulated, with their cost and carbon measured. The original building had a simple concrete frame. As part of the Carbon Value Engineering process, four alternatives were considered: Scenario 1: a flat concrete slab structure Scenario 2: a post-tensioned concrete slab Scenario 3: a steel deck system Scenario 4: a mass timber structure, using CLT and glulam elements, with concrete cores for lateral stability The cost and carbon impact of these different designs are outlined in the

graph below. We found significant embodied carbon savings were possible while simultaneously reducing cost. The most carbon efficient system was the mass timber structure which benefitted from a 13% reduction in embodied carbon, and a 5% reduction in capital costs. However, timber has an additional carbon benefit; through photosynthesis trees absorb carbon dioxide, and release oxygen during their lifetime. If the timber is sustainably sourced, this carbon absorption, known as sequestration, can also be considered as a benefit to the building. In this example, including sequestration in the analysis reduces the embodied carbon of the mass timber structure by 45%. The most cost-efficient scenario was the flat slab, which benefitted from a 6% reduction in embodied carbon and a 15% reduction in cost.

Embodied carbon and Capital across different alternatives Base Building

Capital cost Saving (%)

760

0%

720

1%

680

2%

640

3%

600

4% 5%

560

7%

320 240 200 160 120

9% 10% 11%

Carbon saving 45% Cost saving 5%

280

8%

Carbon saving 13% Cost saving 5%

360

Carbon saving 8% Cost saving 10%

400

Carbon saving 6% Cost saving 15%

440

Carbon saving 0.6% Cost saving 13%

480

12% 13% 14% 15% 16% 17%

80

18%

40

19%

0

Base Building

Scenario 1: Flat Concrete Slab

Scenario 2: Post tensioned Scenario 3: Steel deck floor Scenario 4: Mass timber Concrete Slab

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Scenario 4*: Mass timber (Including Sequestration)

20%

Capital Cost saving (%)

6%

520

Base case

Embodied Carbon emissions (kgCO2-e/m2)

Embodied Carbon emissions

CARBON VALUE ENGINEERING

Such savings are significant. The 6% reduction in embodied carbon in the flat slab scenario translates as a total saving of around 2,000 tonnes of CO2-e for the building. The 45% saving using the mass timber structure including sequestration translates as around 14,500 tonnes of CO2-e. This is equivalent to the GHG emissions caused by 3,000 cars over a year, or the carbon dioxide emitted from 1,736 homes’ energy use for a year (EPA, 2018).

However, it is also worth noting the limitations of the study from a cost perspective. The cost analysis used a simple methodology, with material and process cost data drawn from Rawlinsons. It didn’t consider the additional costs that might arise from innovation and risk management in a large-scale mass timber building of such

a substantial height. But as multi-storey timber becomes more common in the Australian context, such additional costs will possibly reduce in the future.

CONCLUSIONS The Carbon Value Engineering project shows that it is possible to simultaneously reduce embodied carbon and capital cost in the detailed design phase of a building, without changing its basic form or architecture. Such savings can be significant and therefore contribute towards Australia’s aspiration for a low-carbon built environment.

Beyond this, there are two points worth emphasising: 1.

Efficiency is sustainable: When we are able to use less materials in

construction, we often see a triplebenefit of reduced embodied carbon, reduced cost and greater available floor area for rent – thus benefitting planet, profit and people. Such savings are only applicable if the material changes do not negatively impact the operating performance of the building.

2. The value engineering or costs analysis process is an opportune time and method to determine and reduce embodied carbon emissions. This is because a detailed bill of quantities exists, which forms the key data needed to quantify and understand embodied carbon at a detailed level.

This provides the quantity surveying industry with a notable role to play in the reduction of carbon emissions from our built environment.

ACKNOWLEDGEMENTS The Carbon Value Engineering project was funded by the CRC for Low Carbon Living Ltd [grant number RP1034] supported by the Cooperative Research Centres program, an Australian Government initiative. The authors would also like to acknowledge the contribution of David Carmichael of UNSW, Ali Akbarnezhad of the University of Sydney and Multiplex in this study.

REFERENCES ASBEC, (2018). Built to Perform: An Industry Led Pathway to a Zero Carbon Ready Building Code. Final Report.

EPA. (2018). Greenhouse Gas Equivalencies Calculator. https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator RAWLINSONS (2017). Construction Cost Guide.

STURGIS, S. & ROBERTS, G. (2010). Redefining Zero: Carbon Profiling as a Solution to Whole Life Carbon Emission Measurement in Building. RICS Report. RICS, May 2010.

TEH, S. H. (2018). Integrated Carbon Metrics and Assessment for the Built Environment. Doctor of Philosophy, UNSW. WIEDMANN, T. (2017). RP2007: Integrated Carbon Metrics – A Multi-Scale Life Cycle Approach to Assessing, Mapping and Tracking Carbon Outcomes for the Built Environment. http://www.lowcarbonlivingcrc.com.au/research/program-2-low-carbon-precincts/rp2007-integrated-carbon-metrics%E2%80%93-multi-scale-life-cycle

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INFRASTRUCTURE

CASHING IN ON THE INFRASTRUCTURE BOOM, BUT AT WHAT COST?

By Ryan Marschke MAIQS, CQS, Associate Director, GRC Quantity Surveyors SETTING THE SCENE It wasn’t that long ago that a $1B infrastructure project in Australia was considered rare, however, we’re now experiencing a once in a generation spend on transport infrastructure. The major project pipeline for most of Australia’s capital cities is filled with opportunities for quantity surveyors to be involved with major roadworks, rail and light rail projects. As a result of exponential population growth and major public and private spending across Australia’s infrastructure sector, the companies and individuals who service this industry are committing to new heights in terms of their financial risks and capabilities, in an attempt to cash in on the boom.

The magnitude of the projects being delivered is sometimes less apparent than what can be seen during a building industry boom, where cranes fill the skies, and individuals typically take ownership of the end product on a more personal level. In contrast, some of Australia’s largest engineering projects are currently tunnelling their way below ground, other major projects are disguised by the dense

urban landscape typically surrounding them, rail corridors are masked by their acoustic surroundings, and at the end of the day individuals generally share the asset with the public upon completion.

A report prepared by Grattan Institute in 2016 concluded that Australian based transport infrastructure projects valued at $20 million or more, and planned or built since 2001, have cost $28 billion more than our politicians first endorsed. To put $28 billion of overruns into perspective, consider constructing one hundred replicas of Brisbane’s Suncorp Stadium.

Recent studies have also concluded that the larger the project the more likely it is to overrun it's budget. It is therefore no coincidence that we are seeing more major projects overrun on time and cost than underrun.

Although there is a large number of high value contracts being let across the country, and the infrastructure market is ‘booming’, unfortunately not everyone involved is making great profits. The competitiveness of the market, unfair risk allocation, inappropriate procurement models, unforeseen project constraints, restrictive working conditions, mismanaged

design development, etc, are all common trends amongst the major projects currently experiencing budget blow outs.

Some cases are worse than others, however, overall the industry is suffering from what is being labelled by many as a ‘profitless boom’.

For many, they are paying for the pleasure of their involvement with major projects.

At GRC we understand that our role as construction cost consultants is to influence the unwanted trends centred upon the mismanagement of project cost control. We are continuing to challenge each other to find ways to add value to the projects that we are involved with and raise the overall status of quantity surveying in the process. The challenge of steering major projects towards commercial success in an environment where the odds are stacked against us is what motivates us to perform at our best.

THE ROLE OF THE QUANTITY SURVEYOR IN THE ENGINEERING SECTOR The roles for quantity surveyors on major infrastructure works vary and are quite broad by nature. During the project

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INFRASTRUCTURE

feasibility, planning and tendering phases quantity surveyors typically perform more ‘traditional’ measurement, cost planning, project estimating, feasibility studies, cost benchmarking, cost audits and tender evaluations.

Services such as the preparation of procurement advice, cost benefit analysis, value management, risk and contingency development are also prevalent service offerings.

Large scale engineering projects are often delivered under procurement models such as PPP’s and D&C’s which most definitely benefit from having a quantity surveyor assist with managing project cost control throughout the design development process.

In our experience successfully guiding major project work through design development is one of the leading contributors to the overall success of the project.

Throughout the delivery phase of major project work, we are frequently requested to provide procurement services, contract administration, assist with change management, cost forecasting and cost reporting. Our scope can also be extended to include for the preparation of insurance claims and dispute related services.

Professional quantity surveying resources are being used more frequently by parties who are proactive with managing their financial risk. Quantity surveying consultants are often utilised on an ad hoc or at times continuing basis to provide additional support to clients who are either overwhelmed by the volume of their work, seeking to acquire the assistance of a professional, distracted attending to other priorities, etc. Quantity surveyor’s benefit from working from a controlled purposebuilt cost consultancy environment, utilising cutting edge software, and relying upon tried and tested systems which allows for efficient execution and timely and accurate outputs.

Engaging with a quantity surveyor early in the project lifecycle can have huge benefits to the overall success of major project work. Quantity surveyors are often in a position where they can transfer their knowledge from the tender phase of the project into the delivery phase. Our work outputs serve multiple purposes including procurement, work planning and scheduling, cost forecasting, claims management, etc.

Providing the quantity surveyor with continuity can yield great results as the team is familiar with the design, key stakeholders, project budgets, etc.

CHALLENGES FACING QUANTITY SURVEYORS Infrastructure projects in Australia continue to gain approval, even though at times the project has a time and cost confidence level of P40. In this case, the quantity surveyor’s ability to steer project work towards a commercial outcome that satisfies all involved is overwhelming and somewhat unachievable. The measure of success in most cases can only be linked to the value proposition that can be maintained by the quantity surveyor.

Costing project work in the transport infrastructure space is challenging due to the fact that just about every project has elements which are unique and bespoke to the task at hand. As a result, utilising benchmarked rates and pricing for the purpose of estimating major transport infrastructure work is fraught with danger.

In most cases, a project specific, first principles approach to rates and pricing is required to accurately account for the bespoke constraints.

The quantity surveyor must provide work outputs that are complete and accurate and withstand the test of scrutiny applied by others. All outputs must be

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prepared with due skill and accuracy to ensure that the integrity of the work can be relied upon by the various end users within the project teams.

CONCLUSION As projects increase in size and complexity it is important that we, as industry professionals, develop better systems and processes to accommodate for the challenging requirements of major project work.

In an increasingly competitive market, the cost of getting it wrong can be too much to bear for suppliers and constructors. In the last 18 months some of the nation’s most capable and competent operators have been pushed to the wall. Low margins for contractors combined with high risk work often results in financial hardship that can take years to recover from (if at all).

In order to go bigger we must get better.

Digital Engineering, 3D printing, drone technology, virtual reality, automation, etc, are all tangible signs of the industry embracing and leveraging off technology to improve. At industry level there is also calls for more collaborative contracting, better managed commercial risk transfer, fairer tendering conditions, etc, which is all really positive and likely to result in time and cost efficiencies. As construction cost consultants, we are encouraged to make a difference and seek out innovation in order to disrupt the negative trends which have become ‘expected’ when it comes to major project work.

The outlook is positive for quantity surveyors involved with major transport work. The future is exciting for those who are prepared for the challenges that lay ahead. We can only hope that moving forward Australian infrastructure projects are making headlines for all of the right reasons.

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DIVERSITY AND INCLUSION

FLEXIBLE WORKING

ARRANGEMENTS QUESTIONS AND ANSWERS

One of AIQS’s recent undertakings was to canvas members, though its member survey, on some Diversity and Inclusion topics. One of the most stand out responses was that AIQS members’ desire to have more flexibility in the workplace.

Flexibility will mean different things to different people and many workplaces already offer informal flexibility through staff being able to leave early to get to an appointment, extended lunch hours to attend a school function etc.

We need to be aware that flexible working arrangements are something that are a

legal right under the Fair Work Act 2009 and can be requested by employees.

The workplace is undergoing change and we must be flexible in our approach.

For some people, it is essential to have flexibility to manage work and personal commitments. As a profession, we must recognise this and adapt so that we do not lose professionals from our industry.

Some employers are wary and have the perception that flexibility means people are slacking off. There is little evidence to support this. Research shows that increased flexibility can lead to increased

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productivity overall. Employees become more focused on deadlines and feel more valued and trusted.

In a recent study commissioned by Administrative Appeals Tribunal, flexible workers surveyed said they felt they worked effectively for more of a typical working day than those working a traditional nine-to-five. Of course, this does mean changes in workplace practices. The biggest change for many will be trust.

We interviewed the following industry professionals on the topic of flexible working arrangements.

DIVERSITY AND INCLUSION

Q1: HOW DOES YOUR ORGANISATION SUPPORT FLEXIBLE WORKING ARRANGEMENTS AND WHY IS IT IMPORTANT? Jacki Dack: Being a global company, Altus Group has an ongoing commitment to fostering a culture of diversity and inclusion. Having various offices throughout the world, flexibility is important as it helps us to manage time differences and collaborate on a global scale.

Altus is proud to support flexible working arrangements for our employees. At Altus, flexible work can mean different things, tailored to the needs of the employee. A flexible working arrangement may be a short-term or long-term change to working hours, days, location (i.e. working from home on occasion, on a secondment, interstate or in overseas offices), or a combination of these.

Whilst most of our employees do attend the office full-time; employees are aware of their eligibility for flexible work. In Australia, Altus also offers benefits such as study leave to employees studying in a field related to their position, as well as paid parental leave for both primary and secondary caregivers.

Creating work-life balance through flexible work arrangements is a key part of our culture and today’s way of working.

It not only benefits the employees; but has wider benefits to the company’s bottom line through reduced turnover with more engaged and productive employees.

Mark Bendotti FAIQS: Rider Levett Bucknall (RLB), as an organisation, is fully supportive of flexible working arrangements. We understand that all staff have other family and personal commitments and general pressures

outside of work. It is important that we provide a work environment that is flexible to allow these personal commitments to be attended to.

At RLB we believe that a happy, cohesive and productive team produces optimum outcomes for our clients and that flexibility in working hours and working location is an important component.

Depending on circumstances, flexibility can be accommodated in a number of ways including: • regular late starts and/or early finishes • adhoc absences at the beginning, end or during the middle of the day • working part-time • working from home.

Ann Austin: Lendlease has a strong history of providing best practice flexible work policies and benefits that include 11 different types of leave (including three days of Wellbeing Leave a year to recharge), the ability to purchase additional leave, access to a child care rebates, the ability to work part-time, from home, flexible hours, etc. These policies and benefits are a critical foundation of flexible working.

But we also recognise flexible working is a new concept for our industry. Policies alone are insufficient for people to feel fully supported to work in flexible ways – culture is at the heart of supporting flexibility.

In 2016, Lendlease’s Building business commenced a significant journey towards cultural change, to ensure our sites are an enjoyable and healthy place to work for a diverse range of people.

The provision of flexible work practices and elimination of excessive hours was identified as being at the heart of tackling long established, industry-wide issues;

Jacki Dack Regional Human Resources Manager, Altus Group Mark Bendotti FAIQS Managing Director, Rider Levett Bucknall, WA

Ann Austin National Sustainability Manager, Building & Head of Sustainability Engagement, Lendlease Josh Slattery AAIQS Executive Chairman, Slattery

Karen Atfield Organisational Strategy Manager - People & Culture, WT Partnership Michael Ivey Partner, Mitchell Brandtman

Marty Sadlier AAIQS, CQS Director, MCG Quantity Surveyors

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 23

DIVERSITY AND INCLUSION

skills shortages, lack of diversity and pockets of unhealthy cultural habits.

After several workshops with employees across the country, three key steps towards flexibility were identified; ensuring healthy hours of work, pioneering the ‘5 in 7’ work-week and promoting flexible work practices.

Initially, we set limits on total hours of work and weekend work undertaken.

Then in July 2017, we began to bid all our jobs on the basis of a ‘5 in 7’ program, where all employees have two days rest in every seven.

More than half our business has chosen to be early adopters of the ‘5 in 7’ approach and we’re already observing positive changes in talent attraction, retention, performance and morale.

important benefit by employees when we conducted focus groups last year. As a follow-up to these sessions, we drafted a survey for all participants to rate all our benefits (existing and potential) across three dimensions: how much they valued them, to what degree they’d use them and how they made them feel about working for WT (if they were offered).

The key themes gathered through the focus groups, and confirmed through the follow-up survey, were that time and flexibility were the most valued and appreciated commodities.

Whilst flexible working was available across all offices, many employees did not feel comfortable requesting it and it was not being consistently applied. We therefore rolled out a formalised flexible working arrangements policy, which includes: • a clear process for how to request

Josh Slattery AAIQS: The term ‘flexible working’ is often associated with mothers balancing work with family life – but at Slattery, flexibility is a much broader concept. Many of our staff have adopted some form of flexible working. Our emphasis is on developing individual arrangements for each employee.

For some people, flexibility means the opportunity to work from home one day a week, finish at 4pm or incorporate an intense training schedule around work.

For others, flexibility is about having time off to travel or have children, to negotiate additional annual leave or work from another office a few times a year so they can visit family.

Our recruitment strategy focuses on personal attributes over skill sets. This way of recruiting has become a key driver in our growth strategy and is complemented by adopting flexible working arrangements for our staff members.

Karen Atfield: Flexible work arrangements were rated the most

• the ability to revoke it if impacting performance • an employee checklist to confirm that their home environment complies and is conducive to working effectively if flexible working included working from home.

Michael Ivey: Professional Services firms’ assets are not tied up in plant and equipment – they are their people. We provide a service, and that service is derived from the skills, attributes and knowledge of individuals. A one-person firm is reliant on nothing more than that person themselves, and their working arrangements reflect that. They can (and do) work all hours, when and where it suits them, and are beholden only to meeting the needs of their clients to the standards demanded by their profession and their own internal compass.

When we move outside of this model, we move into the brave new world of ensuring that the sum of the individual

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assets is the greater than the parts.

Surely two individuals working together are able to generate not just the volume that they can individually, but also an efficiency dividend from being able to work together. What about 4 individuals – what about 50? Unfortunately, all too often this is not the case.

In the two person scenario when one has to stay home to look after a sick child, attend an appointment, or has to change working times to suit their spouse’s fly-in fly-out shift - they communicate and work it out with the end deliverable in mind. There is rarely a drop-in efficiency - so why is this such a challenge for a 50-person firm?

Marty Sadlier AAIQS, CQS: MCG Quantity Surveyors supports flexible working arrangements on an informal basis, in lieu of a formal contractual basis.

Quality of staff and the requirement for a positive working culture are very important to us.

Looking back on previous roles that I have been employed in with other firms, flexible working arrangements were not readily available, if at all. From a manager’s point of view, it is sometimes difficult to keep a positive morale within a team, especially if their mind is elsewhere, and they have a feeling of ‘missing out or missing something’.

Procuring quality staff is sometimes hard, especially if you are not able to meet a potential employee’s needs or working arrangements. We do not want to pass up an opportunity to employ a fantastic candidate, simply because we are inflexible.

We have found by providing the opportunity of flexible working arrangements for potential candidates at the initial employment job advert, we have been able to attract a wider pool of applicants when procuring potential employees.

DIVERSITY AND INCLUSION

With current employees, we have found that by having flexible working arrangements, especially the employees whom are the primary care giver, we have improved staff work life balances, created a positive culture and reduced staff turnover. Flexible working arrangements for our individual employees have evolved over time and have in turn been implemented in quite a casual way. This has been primarily at a middle management level or supervisor level where these staff have a long standing or stable working relationship.

We have found that having informal arrangements in place around flexible working hours has been a very effective way of reducing the amount of paperwork and administrative effort regarding timesheets, etc. Where we have been able to allow staff to ‘make hours up’.

Usually within the same week.

We find that the 30-40 age bracket within the team request the most flexibility. In some cases, our female staff in this age bracket are the primary care givers to their children (children’s health, school hours and school functions/meetings).

This age bracket seems to have the most married relationships and their partners work as well. The next age bracket that utilises the flexible informal arrangements would be the 20 - 30 age bracket. This is usually more for lifestyle or health appointments and tertiary education requirements, rather than children or school reasons.

Q2: WHAT CHALLENGES ARE YOUR ORGANISATION FACING IN ACHIEVING THE GOALS? Jacki Dack: Providing a high-quality standard of work is our highest priority.

Meeting client deadlines in a traditional working week or with part time/flexible

hours and arranging meetings can sometimes be difficult. Our offices are networked and have compatible hardware and software. Altus Group uses online tools to facilitate the communication process and minimise these challenges. In Australia, we also have a system where employees note their availability and location so that the team can handle client queries and requests in a timely fashion.

Maintaining and measuring KPI’s for staff with flexible work arrangements can be a challenge for managers. To ensure the achievement of key targets, we discuss major tasks, project milestones and issues that may arise through face to face communication wherever possible, rather than via phone or email, as it allows you to get the full picture, while strengthening the team dynamic.

We aim to find a balance between providing fair and equal opportunities for employees and ensuring their work arrangements are in line with overall business requirements. Despite the challenges, we believe the employee’s sense of engagement and quality of work is enhanced by a flexible work arrangement.

Mark Bendotti FAIQS: We find that the challenges are not great and that in the most part can be overcome with common sense and flexibility from both parties.

Some of the issues faced are around: • work commitments and numerous output and deadline requirements that need to be accommodated • unplanned and ‘immediate’ project deadlines • short term and unplanned absences.

These challenges are largely overcome by communication within the RLB team, communication with clients, having

teams rather than individuals working on projects, and having team members willing to lend a hand as required to help the team and achieve the required outcome.

Ann Austin: As with any form of culture change, there are the usual challenges in aligning processes, mindsets and habits to a new way of working. We’ve needed to maintain patience and tenacity, as creating lasting cultural change takes time.

Beyond all this however, our greatest challenge is that excessive hours, inflexible and unhealthy work practices are a systemic industry issue. The way work is procured and assessed through the whole value chain impacts the experience of work for over a million Australians.

There is much we can do within our own organisation to drive change, but lasting change needs to be industry wide. We cannot do this alone. We need to partner with our clients, peers and suppliers so that flexible and healthy work practices become valued, expected and upheld across the whole industry – as much as safety has.

For this reason, we are excited to be a founding member in the Construction Industry Culture Taskforce – a Government, industry and researcher partnership formed to create a Culture Standard that will set expectations for diversity, hours of work and wellbeing in the construction industry. A draft of the Standard is currently being developed for consultation in 2020.

Josh Slattery AAIQS: Any organisation serious about maintaining its competitiveness must embrace diversity as a strategic business imperative. While flexibility is an ongoing challenge in any

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 25

DIVERSITY AND INCLUSION

small company, we are always looking for creative ways to accommodate work life balance and to help people bring their “whole selves” to work. Growing a workplace culture centered on inclusion, diversity and respect is what encourages people to flourish.

Slattery takes pride in its workplace diversity and creating an inclusive environment that values all individuals.

We believe diversity powers creativity and sparks innovation. Our emphasis is on developing models that suit each employee’s needs – no matter their gender, race or lifestyle. Slattery was recently acknowledged as the winner of the Property Council of Australia Award for Diversity < 250 employees.

At Slattery, embracing diversity involves recognising that each team member has different drivers. Working with these drivers contributes to a valued workplace and leads to success. This has become a key part of our progressive growth strategy and helps shape a dynamic team who work across all sectors of property, construction and infrastructure.

Karen Atfield: The biggest challenges we’ve faced achieving our flexible working arrangements goals relate to the project-related nature of the work and the demands of clients and volume of face to face meetings required.

WT is continuing to roll out tools to support flexible working such as Microsoft Teams for remote video conference and screen sharing as well as VPN anywhere which provides full network access from any location. All employees have surface pros to also support working

from anywhere. Remote access is a core requirement for any new applications being rolled out.

We are finding that an increasing number of our clients and stakeholders are supporting flexible working which is gradually changing the level of support for working flexibly on construction projects.

Michael Ivey: In short there are the roadblocks of competing needs, bureaucracy, technology, and a loss of focus of the end goal versus individual entitlements. The keys are being able to ‘work together’ in a collaborative way that maximises this dividend and does not detract from it.

Importantly, ‘Generational’ PQS firms (those firms aiming at continuing to operate past their original founders) have a further imperative. Their focus is not only on keeping clients satisfied, and their team operating efficiently – they need to develop the next generation of leaders.

Traditionally this has come from oneon-one mentoring of individuals on their career journey from cadet through to Directorship. The key to this has been in working alongside them and sharing, through experience, the knowledge and the traits that are going to make them successful. This is what has worked in the past and the model that the current generation of leaders have evolved from. It is also what I find is most often forgotten in the assertion ‘I can be more productive working from home’. The challenge for both the leaders and the future leaders is not to lose sight of the intangibles in favour of the quantifiable.

26 - SEPTEMBER 2019 - THE BUILDING ECONOMIST

Today’s PQS workplace is no longer 8.30am-5pm Monday-Friday. Nor is it located in towers of power in the CBD. At Mitchell Brandtman, more than half of our team start and finish work outside of traditional business hours, and a number of them at locations other than their ‘desk’. They can flex for up to half a day where needed to attend to personal matters, and most cadets are employed on a full-time basis and entitled to ‘paid’ time off to attend university.

Marty Sadlier AAIQS, CQS: Although the informal flexible working arrangements we have implemented have been an overall positive result, there are occurrences where it has not always been conducive to achieving greater productivity or employees experiencing less stress.

We have not sought to implement a formal policy on flexible working arrangements.

However, we see this as the next hurdle we will face. The challenges that we currently face is the ‘last minute’ changes to the flexibility of the workplace attendance.

Although we have been flexible in the past on this, I see that a more rigid approach to the Flexible Working Arrangements will need to be implemented.

With staff changes and chain of management structures changing, it can create difficulties around workloads and generational expectations. The informal arrangements work very well with shortterm arrangements or for a last-minute requirement. However, we are finding that these last-minute requirements are becoming more frequent in occurrences.

The occurrence of this last-minute requirement currently increases stress

DIVERSITY AND INCLUSION

on the remaining employees to cover workloads and tasks. Hence, the need to reevaluate our current informal arrangements and move to a formal contractual arrangement, designed to meet a specific employee’s need.

To encourage formal uptake of flexibility, we believe that allowing the employee to know that they have certain days off a week, certain mornings or afternoons off a week may reduce the stress of the last- minute requests. We have found that where in the past we could have a particular employee responsible for a particular role, procedure or task, we have had to cast a broader net with our staff responsibilities.

In the past, we have had issues when particular employees may not be in attendance within the office, that workloads or procedures are left incomplete or not completed at all. To avoid stress on all parties, we have implemented additional training to ensure that additional staff are able to complete tasks, ordinarily the responsibility of one staff member to avoid these bottle necks or incomplete tasks. These revised arrangements would need to consider job-sharing, compressing a work week (where employees work full time hours in less than five days), flexible working hours (where employees start or finish at various times) and flexible rostering (where employees work split shifts).

The challenges that we have when staff work from home has sometimes been the difficulty of the office- based employees being able to work as effectively with that external employee. Likewise, the feedback from employees on the negative side of the working from home scenario has been the clear division of home time

and work time, or the interruption of work hours due to other people or children present in the house.

Another challenge with the informal flexible working arrangement has been the management of the actual hours worked by an employee. With employees arriving and leaving at different times can make it difficult for managers and supervisors to determine whether employees have met required work hours. If managers have to continually follow this up with an employee, it can result in the opposite of the intention of the scheme and actually damage workplace morale.

To ensure that all parties agree that the formal flexible working arrangements is a true and fair reflection of both the employees needs and ours, we are endeavoring to implement the following: • Form a working group of employees, including managers and supervisors, and asked them to review flexible scheduling policies offered by other companies.

• Provide training and education to employees about flexible scheduling and how to use it appropriately.

• Once the formal agreement has been put in place, hold employees accountable for sticking with the schedules that they have set for themselves.

• Provide employees with additional tools for staying in touch even when they are not in the office. There are new cloud applications and communication apps (such as Slack) that could be rolled out across the teams.

• Increase the use of videoconferencing, not just skype audio.

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 27

GREEN INFRASTRUCTURE

USING VR TO ASSESS WILLINGNESS TO PAY FOR GREEN INFRASTRUCTURE IN SWEDISH RESIDENTIAL DEVELOPMENT

By Prof. Sara Wilkinson, University of Technology Sydney and Dr Agnes Zajelska Jonsson, KTH Stockholm

28 - SEPTEMBER 2019 - THE BUILDING ECONOMIST

GREEN INFRASTRUCTURE

It is said that we are experiencing more change in the current two decades than we have over the last three centuries.

This change is not only climate-related, but is also largely technology focussed and this is impacting us socially, economically and legally. With this in mind, it is not surprising to hear about a project that uses Virtual Reality (VR) to assess willingness to pay (WTP) for an environmental benefit such as Green Infrastructure (GI). This article looks at residential development in Stockholm Sweden and a project that uses VR as a means of determining how much GI is economically optimum.

GREEN INFRASTRUCTURE GI offers significant wide-ranging economic, social and environmental benefits. Green roofs, facades and walls contribute to these benefits, particularly in dense urban areas. Green roofs improve air quality, provide space for social interaction and relaxation, help manage urban stormwater, reduce the urban heat island (UHI) effect, provide space for urban food production and improve urban biodiversity. These economic, social and environmental benefits have led to GI uptake nationally and internationally. Some benefits accrue to owners and/or occupiers, whereas others provide wider societal benefits.

As global population grows, towns and cities expand and become denser with less area for green space and vegetation. Increasing urbanisation will have significant effects on the natural environment and the health and

wellbeing of human and non-human populations. Green roofs, facades and green walls can mitigate some of these impacts. Swedish cities experience similar issues to Australian cities, with predictions for increased average temperature with more extreme heat events as well as increased rainfall, drought, fire, warmer oceans and sea level rise (CSIRO and Bureau of Meteorology 2016). Stockholmâ&#x20AC;&#x2122;s annual average maximum temperatures from 1981 to 2017 (www.ClimateChip.org, 2019) show an increase from 9.2 oC to 11.7 oC (figure 1). These increases are not discernible on a day to day basis but are clear in figure 1.

More alarming predictions are shown in figure 2, where algorhythms of five climate centres predict temperatures

to 2085. The HadGEM (UK Met Office) model is shown in red and in purple is NORES - the Norwegian climate model.

The green shows the French Institut Pierre-Simon Laplace model prediction and the US GFDL NOAA model is the blue line. The orange line is the Japanese prediction - MIROC (University of Tokyo) model. The Japanese model forecasts an annual average maximum temperature increase from 10.2oC in 1992 to just under 17oC in 2085 representing a 6.8oC increase.

The most optimistic prediction, the US model, predicts 2085 annual average maximum temperature is just below 14oC. All models predict major temperature increase and changed weather patterns.

Most existing buildings are not designed to function comfortably within these

Figure 1: Stockholm annual average maximum temperatures 1981 to 2017 Maximum Temperature (Annual Average) La�tude: 59.25 and Lonitude: 18.25

12.50 12.00 11.50

o

C

11.00 10.50 10.00 9.50 9.00 8.50 8.00

Trendline: 0.7oC per decade Standard Error: 0.142

7.50 7.00 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

INTRODUCTION

(www.ClimateChip.org, 2019)

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 29

GREEN INFRASTRUCTURE

parameters. Although temperature figures differ for Australia, we face similar issues with our building stock.

With the need to accommodate and adjust to higher temperatures, the value of incorporating GI into built environments bringing back lost nature in cities, recreating lost ground space, using roof and wall spaces, is clear. Green roofs and walls improve thermal and sound insulation of buildings, enhance stormwater management and air quality, increase property prices, create places for social interaction and community engagement, cool cities, and reduce energy consumption and greenhouse gas emissions (AECOM, 2017). The aesthetic qualities of cities are improved. Green roofs contribute to urban ecology or biodiversity protection and urban food production at commercial scales as rooftop urban farms.

Green roofs are an example of

multifunctional GI (Dixon and Wilkinson 2016) with multiple social, economic, ecological, environmental, and public health benefits. These benefits are categorised into two types: public benefits, shared at wider community and government levels and private benefits, received by owners and occupants. The public and private benefits provide meaningful economic returns. The benefits are key drivers central to the uptake of living architecture practices (Hopkins and Goodwin 2011) and comprise a primary benefit which comes with co-benefits, shown in Table 1.

Policy initiatives, government incentives and key national priorities significantly influence processes and guide the progress in implementing GI. The drivers vary with different land use zones such as residential, commercial and industrial (City of Sydney 2017) and various locations and at different densities with the city.

Figure 2: Stockholm predicted annual average maximum temperatures from 1992 to 2085 Maximum Temperature (Annual Average) La�tude: 59.25 and Lonitude: 18.25

18 HadGem

NORES

GFDL

IPCM

MIROC

17

We argue there is also an uplift in property value. AECOM (2017) estimated the value uplift of GI in a typical Sydney home to be AU$50,000 and Newell et al (2011) calculated the price premium in top quality commercial property for sustainability features to be circa 9%.

CHALLENGES FOR GI A key concern is the high costs of green roof, wall and facade installation and maintenance (Downton 2013).

Specialised knowledge and skills are needed for maintenance and care when green roofs, walls and facades are installed on high-rise buildings.

Developers often consider other technologies (e.g. solar panels) more feasible. Continuing plant maintenance is an added cost and overall costs is a major barrier to the uptake of green roofs.

Thus, it is vital to identify short and long term, multiple performance benefits, and economic and environmental values to establish the viability of GI. The capacity of the construction industry for GI is in a developing phase in most countries (Wilkinson et al, 2017). The GI industry needs to be able to supply skilled workmanship to withstand demand.

Barriers are summarised in Table 2.

16

o

C

STOCKHOLM

15 14 13 12 11 10

1992

2025

2055

2085

(www.ClimateChip.org, 2019)

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Stockholm is a metropolitan area housing over 20% of Swedenâ&#x20AC;&#x2122;s population. There are three tiers of governance at national, municipal and county levels. The municipality is responsible for regulations affecting planning and building which is delivered through the Swedish Planning and Building Act. There are

GREEN INFRASTRUCTURE

Table 1: Green roofs - primary and co-benefits Green Roof

Primary reason

Co-benefits

Thermal

Improve insulation and reduce energy consumption

• Stormwater attenuation • UHI

• Biodiversity • Air quality

Stormwater

Attenuate pluvial flooding

• Thermal improvement • UHI

• Biodiversity • Air quality

Biodiversity enhancement

Increase local biodiversity

• Thermal improvement • Stormwater attenuation

• Air quality • UHI

Conservation of flora and fauna

Provide environment for endangered species

• Thermal improvement • Stormwater attenuation

• Air quality • UHI

Urban food production

Local food production

• Reduce carbon food miles • Thermal improvement • Stormwater attenuation

• Increase biodiversity • Air quality • UHI

Provision of social space

Amenity space

• Thermal improvement • Storm-water attenuation • Food production

• Air quality • UHI Source: Wilkinson & Dixon, 2016

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 31

GREEN INFRASTRUCTURE

26 municipalities within Stockholm focussing on increasing densities and redeveloping land to accommodate a growing population.

Stockholm aims to be fossil free by 2050 and acknowledges the role of the built environment to attenuate and mitigate climate change and this is manifest in initiatives such as the Green Space Factor (GSF) (Clark, 2005). The GSF and Green Points system, which originates in the GRaBS (Green and Blue Space Adaptation for Urban Areas and Eco Towns) project is applied in urban regeneration. GRaBS is a network of pan-European organisations involved in integrating climate change adaptation into regional planning and development.

Stockholm shares a number of issues found in Australian cities.

Table 2 Barriers to Green Infrastructure Type of barrier

Description

Economic

• Perceptions of high installation and maintenance costs • Lack of knowledge regarding value uplift of GI to capital and rental values

Environmental

• Plant lifecycle and replacement rates • Additional water consumption • Additional energy consumption • Competition with other sustainable technologies e.g., rooftop solar PV

Social

• Occupational Health and Safety during installation and maintenance

Technological

• Structural capacity for retrofit • Perceptions of leaks • Reliability of systems – durability • Reliability of systems – maintenance • Access to roof for installation and maintenance • Orientation (access to sunlight) • Lack of guides for owners and property managers / facility managers • Construction industry capacity Source: Adapted Wilkinson et al, 2016

VR AND AR VR is a ‘scientific and technical domain that uses computer science and behavioural interfaces to simulate in a virtual world the behaviour of 3D entities, which interact in real time with each other and with one or more users in pseudo-natural immersion via sensory moto channels.’ (Fuchs et al, 2011: 8).

VR has grown out of computer vision and 3D modelling and has gained significant momentum in the past decade with a range of devices available (Greenwald, 2018). VR technology has various hardware options from those that require a mobile phone (e.g. Samsung Gear VR) to those that can stand alone (e.g.

Oculus Go). With Augmented Reality (AR) currently available, technology is primarily in developer mode such as the Magic Leap (Greenwald, 2018). There is

hardware produced by Emoti, a head-updisplay that includes a five or 14 channel electroencephalogram or EEG (EMOTIV, 2019). The use and validity of this device is found in the field of neuroscience (Argento et al., 2017). For some projects, researchers want users to be fully immersed, yet passive, and can use mobile headsets (for wider audience) or standalone headsets. If there are decisions to be made, additional controllers allow that functionality. From previous work on VR, psychology and human factors, the more intuitive and natural an environment the easier it is to focus on undertaking the tasks (Juliani, et al, 2016).

Architecture uses a range of drawn mediums to represent imagined spaces from paper and pencil, CAD, 3D models and now VR. Leovardis and

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Bahnă (2017) researched journalism architecture and advertising to see how VR would influence innovation. Virtual environments were described as the ‘holy grail of architecture’, as the process allows for changes to be made within the virtual space (Leovaridis & Bahnă, 2017: 167). Within creative industries VR is seen to be both cost effective and enhanced interactions, creativity and problem solving (Thornhill-Miller & Dupont, 2016). Recent studies demonstrate little difference in the judgement of the performance of a space, being in a physical space, looking at a photograph or a rendering (Acemyan & Kortum, 2018). Researchers at Stanford’s Virtual Human Interaction lab explored how VR may increase environmental behaviours (Ahn, Bailenson, & Park,

GREEN INFRASTRUCTURE

2014). The potential of virtual ‘being there’ in places, allows us to explore future environments in real time. This approach was therefore deemed appropriate for our project to assess how people perceive and value GI in a Stockholm residential development.

Though studies use VR to assess the property market (Wolf, 2018), it is said AR/VR will become ubiquitous, in conjunction with smart homes, the internet of things (IoT) and artificial intelligence (AI).

VALUE AND WILLINGNESS TO PAY (WTP) Many economic, social and environmental benefits result from the installation of GI and are tangible (can be quantified) or non-tangible (cannot be quantified).

The accelerating rate of investment into GI is indicative of the value created for stakeholders. A challenge to adoption is the clarity of the business case for specific investments, which are open to a wide variety of design choices affecting costs and benefits. Table 3, shown on the next page, summarises sources of value created from GI. The economic benefits are divided into two categories: 1.

Those that benefit owners/ occupants/investors directly such as installation, replacement and repair, stormwater, increased property values, and energy savings leading to reduced operating costs for running less air conditioning in warmer months and less heating costs (through less heat loss through the external walls and roofs).

2. Other financial impacts such as greenhouse gas savings, market-

based savings and community benefits.

A challenge in quantifying the value from GI is the variety of approaches to evaluate net value. The most common are cost-benefit analysis (CBA), triple bottom line (TBL), life cycle assessment (LCA) and life cycle costing (LCC).

While these models enable analysis of the costs and benefits, they all are incomplete on some dimension, and are criticised for being insufficient to allow for reliable evaluation of trade-offs between economic and environmental performance. Economists argue conventional financial CBA is insufficient for investment analysis, as environmental costs and benefits are not included in the modelling.

to various GI spaces, including green roofs and walls. We are working with a major Swedish developer. The results of the experiments and semi-structured interviews will provide a comprehensive understanding of GI. This understanding will be correlated and mapped with data on property capital and rental values, to determine various degrees of willingness to pay for GI. With this knowledge, developers in Sweden and in Australia will be able to make a more robust informed holistic business case for increased uptake of GI for more liveable healthy cities.

With GI, this challenge is salient as there are substantial direct costs incurred by owners and investors (City of Sydney 2017), whereas the value created is shared by various stakeholders including tenants, and the local community and economy. Perhaps in recognition of the shared value, a range of subsidies could be implemented to compensate investors. While more recent attempts to evaluate the business case for GI have included attempts to identify and quantify the value created with respect to economic, environment, and community/ social value (e.g. GSA 2011), a more compressive approach which includes a more comprehensive set of value drivers is needed.

WHERE WE ARE UP TO This research adopts VR and EEG Technology as a means of assessing people’s perceptions and reactions

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 33

GREEN INFRASTRUCTURE

Table 3: Summary of key sources of value from GI Value drivers

Main category of value delivered Economic

Supply of products and services Sale of fruit and vegetables Sale of flowers and other non-edible products Other value-added products and services, such as provision of education services Direct cost savings Thermal energy saving leading to reduced demand for heating and cooling Roof longevity in some cases Air quality CO2e sequestration and absorption Removal of VOC (indoor and outdoor) Quality of life Mental Health benefits such as reduced anxiety Productivity benefits from increased amenity Stormwater management Absorption and storage of rainwater leading to reduced demand from water supply Absorption and storage of rainwater leading to reduced demand for stormwater services to manage urban water Reduction in urban water pollution such as through remediation of water quality

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Environment

Social / community

GREEN INFRASTRUCTURE

Value drivers

Main category of value delivered Economic

Environment

Social / community

Biodiversity Increased habitat Increased diversity in flora and fauna Urban Heat Island effect Reduce energy demand for cooling Acoustics Reduction of noise transfer Tourism Increased direct and indirect employment and other economic activity Real estate value Increase in property value Increase in surrounding property value Increased rent returns and reduced vacancy rates Increase in urban aesthetic Other economic value New jobs for building infrastructure New jobs maintenance Source: Wilkinson et al, 2017

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 35

INSURANCE

THE FIRST 48 HOURS

MATTER

FOLLOWING THE CORRECT CLAIMS PROTOCOL IS CRITICAL TO GETTING THE BEST OUTCOME FROM YOUR PROFESSIONAL INDEMNITY INSURANCE. 36 - SEPTEMBER 2019 - THE BUILDING ECONOMIST

INSURANCE

In 2019, the construction industry faced some new challenges. Two of the more high-profile issues making waves are the flammable cladding crisis in Victoria and evacuation of high-rise residential buildings in Sydney due to potentially hazardous structural defects. And in spite of a recent slowdown in residential construction, large-scale infrastructure projects across both states are putting upward pressure on costs for materials and labour¹.

INSURANCE MATTERS MORE THAN EVER With these operating conditions comes an even higher level of scrutiny for all building professionals, including quantity surveyors. When a multimillion dollar construction project is making headlines, who knows who will get caught up in the litigation process that could be triggered? This highlights the importance of having Professional Indemnity insurance to help protect your business in the event of a claim.

But it’s just as important to be aware of what to do if you’re actually facing a claim. Perhaps you’ve received a phone call from a client to discuss their concerns about a cost blowout. Or maybe you’ve had formal legal notice of a claim of misconduct or negligence against you. In either case, what you do next can have a significant impact on the ultimate outcome of a claim.

WHAT IS PROFESSIONAL INDEMNITY INSURANCE? Professional Indemnity insurance is designed for professionals providing advice or services to customers. It includes cover for your business against legal costs and claims by third parties for damages arising from acts, omissions or breaches of professional duty in the course of your business.

In real terms, this means that if you do something (or neglect to do something) in the course of your work, and a customer suffers financial loss as a result, they may take legal action against you.

With the right policy, you can defend your business against a claim and prevent financial loss.

THE RIGHT COVER IS THE FIRST STEP Many building professionals have no choice but to have a Professional Indemnity policy in place. In the case of building surveyors in Victoria, for example, many are facing the possibility of being unable to operate due to lack of insurance cover². A major insurance underwriter has withdrawn their professional indemnity policy for building surveyors in the wake of the cladding crisis, leaving many in the industry without the mandatory cover they need to be registered with the Victorian Building Authority.

This case highlights the importance of ensuring your Professional Indemnity insurance is fit for purpose for you as a quantity surveyor. There may be specific clauses or inclusions needed for adequate cover for your business.

Working with a specialist insurance broker gives you confidence that you have a policy tailored for risks commonly found in your industry. A broker may also be able to negotiate for you on costs across a range of insurance providers. And if you do face a claim, a broker can offer advice and support on managing your claim.

FOLLOWING CLAIM PROTOCOL CAN BE CRITICAL TO GETTING GOOD OUTCOMES If you did find yourself subject to a claim of negligence or misconduct, it’s not just having the right policy that matters.

How a claim is handled, by you and your legal counsel, can make all the difference to the final outcome. Following the correct steps from the very beginning of the process can help prevent a claim becoming a serious threat to the survival of your business.

THREE COMMON CLAIM MISTAKES In a Professional Indemnity claim scenario for quantity surveying, a property developer could well be the one bringing a claim. Perhaps a project

¹ Australian Financial Review, Construction costs to keep rising: RLB, 23 January 2019, https://www.afr.com/real-estate/construction-costs-to-keeprising-rlb-20190122-h1ac0y ² ABC News, Flammable cladding leads to insurance crisis which could see construction industry grind to halt, 25 June 2019 https://www.abc.net. au/news/2019-06-25/flammable-cladding-website-suggests-how-government-will-respond/11244182

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 37

INSURANCE

is threatening to go substantially over budget and the developer thinks poor advice from a quantity surveyor in the tender and contract process has exposed them to the risk of financial loss. The quantity surveyor – the defendant – becomes aware of the concerns and begins to investigate. But before they get much further they hear from lawyers representing their client with a Draft Statement of Claim. What a defendant chooses to do next can influence the course of future events.

Here are some of the problems often seen when a defendant is unsure what steps to take in dealing with a claim:

1. DOING YOUR OWN NEGOTIATION Trying to keep lines of communication open with an unhappy client can seem like a positive way to handle a dispute.

While it may not help to stop all contact and let legal representatives handle things, you could also jeopardise your position in the claim by saying too much, whether in a phone call or written communication.

Whether a formal legal claim has been issued or not, if you’re aware of a potential problem, it’s definitely best to contact your insurer or broker and get their advice on how best to respond.

2. CHOOSING YOUR OWN LEGAL TEAM Your business may have a capable and trusted legal team as the natural choice to handle your claim. But it’s vital to contact your insurer or broker before taking legal action and making any response to a claim. In many cases, a professional indemnity policy will state the insurers’ ‘duty to defend the claim’. This can mean the insurers consent must be sought at every stage, including appointing lawyers, denying or accepting liability, making any settlement arrangements and throughout legal proceedings.

3. LEAVING OUT IMPORTANT INFORMATION As well as seeking the right legal advice, there are other important actions required in the early stages of a claim journey.

Providing incomplete information can not only hold things up, it could also compromise otherwise valid insurance cover. Being fast and thorough in delivering all the necessary information will allow you to quickly confirm indemnity, appoint approved and expert legal representatives and clearly communicate your position on liability. Having all these arrangements in place in a timely way can influence how swiftly a claim can be settled, as well as the outcome.

CHOOSING THE BEST COURSE OF ACTION Even when claim protocol is followed in these early stages, defense of a negligence or misconduct claim can result in lengthy litigation that may end up going to trial. The financial and reputational costs involved can be very high and choosing an informal settlement over a lengthy court case may be worth considering. It can often be a better outcome for your business, allowing you to put the claim behind you and get back to day-to-day operations without concerns about a court decision going against you.

When it comes to protecting your business, a professional indemnity policy is well worth considering as part of your risk-management plan.

This article has been provided by Aon Affinity.

This information is intended to provide general insurance related information only. It is not intended to be comprehensive, nor does it, or should it (under any circumstances) be construed as constituting legal advice. You should seek independent legal or other professional advice before acting or relying on any of the content of this information. Aon will not be responsible for any loss, damage, cost or expense you or anyone else incurs in reliance on or user of any information contained in this article.

38 - SEPTEMBER 2019 - THE BUILDING ECONOMIST

MODULAR CONSTRUCTION

THE PROCUREMENT AND COSTING OF MODULAR INTEGRATED CONSTRUCTION IN HONG KONG

By Dr. Peter Ng FAIQS CQS and Mandy Ng MHKIS, Beria Consultants Limited

INTRODUCTION This article shares experiences from one of the pioneering projects in Hong Kong adopting Modular Integrated Construction (MiC) method from a quantity surveying aspect regarding procurement and cost. The concept of MiC is to have the building constructed as ‘factory assembly followed by

onsite installation’. In other words, independent prefabricated modules, including decoration works, fitout and basic building services works, will be completed in factories and then being transported to construction sites for installation.

Hong Kong is a developed city with a serious problem in labor shortage particularly in the construction industry resulting in a surge of construction cost.

MiC¹ may be a solution to meet the high demand of accommodation both in the private and government housing market.

¹ Definition of ‘MiC’ extracted from Practice Note for Authorized Persons, Registered Structural Engineers and Registered Geotechnical Engineers (PNAP) ADV-36 issued by Buildings Department, HKSAR.

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 39

MODULAR CONSTRUCTION

BACKGROUND OF PROJECT The project consists of two 17 floors each student residential hostel towers on top of a three-level podium for the University of Hong Kong. The construction floor area is approx. 28,000m2. The typical floors of the tower portion will be constructed using hybrid modular units while the tower core, the transfer plate, podium, sub-structural works and the foundation works will be based on the traditional cast-in-situ construction method.

40 - SEPTEMBER 2019 - THE BUILDING ECONOMIST

MODULAR CONSTRUCTION

In order to suit the MiC method, the layout of the tower and the core was adjusted to ensure that it can match with the MiC modules divisions. The revised layout shown in Figure 1 is to promote the typical and repetitive modules nature and the enlarged central portion design helps to develop a more rigid form of the building tower which facilitates the structural calculation of the MiC units.

tender in two separated envelopes and the commercial envelope can be opened only if the tenderers pass the technical assessment.

Assessment of the tender in technical section comprises of two stages and the assessment is carried out by a Tender Assessment Panel: • Stage I: Screening - the tenders will be vetted against a set of minimum requirements.

• Stage II: Marking - the tenders will be assessed based on the marking criteria set out in the tender.

The Tenderer’s submission must satisfy all of the minimum requirements listed in the Stage I. If Tenderers’ submissions do not satisfy any one of the minimum requirements, their tender shall be treated as nonconforming tender and shall not be considered further. Only those tenderers who satisfy all the requirements therein will be assessed at Stage II which has

specified the requirements in detail.

The respective weights for price and technical score are 60:40. Normally, the tender with the highest overall score would be recommended for acceptance.

CONTRATUAL RELATIONSHIP WITH MIC SPECIALIST In the early stages of MiC specialist work, we intend to increase the competitiveness of the tender amongst the tenderers. Therefore, in our project, the tenderer can team up with any MiC specialist sub-contractor to submit the tender. Whilst the MiC specialist doesn’t have to be selected from any approval list, the MiC specialist must have to obtain the pre-accepted MiC systems/ components before the fabrication of the MiC units. This procurement strategy was successful when there were eight tenderers as all of them have partnered with different MiC specialist. Thus, more competitive bids are submitted.

Figure 1: Proposed “MiC-Ready” Layout

ASSESSING THE TECHNICAL CAPABILITY OF THE TENDERER As MiC is an advance construction method in Hong Kong, an MiC specialist sub-contractor with high-rise hostel experience working under the main contractor will be the most beneficial to the project.

The technical capability of the tenderers’ team is critical for the selection of the tender. Each tender will be assessed technically and from a commercial aspect. Each tenderer submits their

Figure 2: Contractual relationship between the University and the main contractor

THE UNIVERSITY

SITE FORMATION & FOUNDATION

BUILDER'S WORKS

MAIN CONTRACTOR

MIC WORKS

EXTERNAL WORKS

BUILDING SERVICES WORKS

THE BUILDING ECONOMIST - SEPTEMBER 2019 - 41

MODULAR CONSTRUCTION

The main contractor and their domestic sub-contractors along with the MiC specialist can further develop their design based on a MiC ready design, which has already been approved by the buildings department. It helps to eliminate a lot of uncertainty in the construction aspect and it’s easier for the MiC specialist to develop the MiC units compatible to their own product. The backup plan is that they must follow the approved MiC ready design to carry out the works. The University have only one contractual link with the main contractor with no nominated sub-contractor nor nominated supplier.

Besides the main contractor’s MiC specialist, under the main contractor’s MiC team, they have a MiC manager to coordinate with their own design and planning team, offsite factory supervision, quality assurance and checking team, and onsite installation team. The main contractor is obliged to employ an independent MiC consultant team to line up with the MiC design submission process, offsite fabrication and onsite installation process to enforce the main contractor’s capability in the statutory submission and the coordination works in MiC production to minimise the potential risks. Since there is only one single contractual link between the University and the main contractor, close coordination between the main contractor and the MiC specialist subcontractor is crucial.

SHORTENED CONTRACT PERIOD The original contract period specified in the tender documents is 1530 calendar days. Six out of eight tenderers have

submitted their proposed contract period ranging from 1252 to 1500 calendar days i.e. 30 to 278 shortened calendar days in contract period.

The shortened proposed contract period for the MiC works compared with traditional cast in-situ concrete method mainly depends on the following factors: a. design for fabrication and production of MiC units offsite must be confirmed in the early stages of the project b. detailed delivery logistic planning for MiC units from to site c. efficient checking and monitoring system to ensure the quality of the MiC units d. site planning including the uplifting facilities/method and MiC units’ installation sequence planning.

IMPLEMENTATION OF OFFSITE WORKS PAYMENT The value of the MiC units is about 40% of total construction cost excluding preliminaries and contingencies. An offsite works payment mechanism is allowed in the tender. About 30% of the MiC unit value is paid upon the architect’s approval on manufacturing of “MiC” units.

Another 40% of the MiC value will be paid upon completion of MiC units up to the architect’s satisfaction. A further 15% will be paid on the progress of the installation onsite. The remainder will be paid upon substantial completion and also the expiration of defect liability period.

To minimise the University’s exposed risk for offsite payment, the main contractor must fulfill the prerequisite requirement

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for submitting the approved payment bond or cash security as per the contract.

The bond or cash security for securing the offsite works payment must be in batches to tie in with the payment schedule. Bonds or cash securities can be released once the corresponding parts of the MiC units have been properly installed onsite, evaluated and paid in the interim payment. The offsite works payment is allowed in the contract to mitigate the financial burden of the main contractor to attain a more competitive bid from the tenderers.

ENSURE OFFSITE WORKS QUALITY CHECK Upon confirmation of the design of the MiC units, the main contractor must submit material samples for the architect’s approval. Upon finalisation of the material approval of the MiC works, the main contractor has to construct two storeys with three modules each level offsite mockup before factory fabrication to establish an acceptable standard.

The standard of material established and recognised in Hong Kong is mainly based on the British standard and it is necessary to make sure that the installed materials offsite in the MiC units fully comply with the specification requirements. Should materials sourced from other locations be used, the main contractor should obtain the recognised certificate to ensure that the equivalent standard of materials will be provided.

The two storey mockup is required to ensure the verticality in the connection of the MiC units as well.

The main contractor must ensure that the relevant works are carried out and/

MODULAR CONSTRUCTION

or being monitored and checked by the appropriate registered trade workers to comply with relevant ordinances. These requirements are stated clearly in the tender documents.

The tenderers submit a quality assurance and checking plan for consideration. An independent quality checking team will be employed under the main contractor to check the quality of MiC works offsite.

COSTING OF MIC IN HONG KONG Analysis is carried out to compare construction cost based on traditional cast-in-situ method and the MiC method for this University project. It was found that the submitted tender price for MiC method is lower if traditional cast-insitu method was adopted for the current project which is about 7%.

There were different module types planned for the project and an analysis was carried out to find the correlation between the cost per m2 and the module types. The cost for the MiC units ranges from HK$15,000/m2 to HK$36,000/m2 (i.e. USD1,900/m2 to USD4,600/m2) with the following findings:

a. for the same type of functional use, the bigger the size of the module, the lower the cost b. cost will be higher when more cladding surfaces are required c. cost for toilet is higher compared to bedroom, communal lobby and corridor d. cost for bedroom is the second highest considering more fixed furniture.

In the long run, when the market matures with the advanced MiC method and with a balanced risk-allocated procurement approach in attracting a competitive bid, we expect construction cost savings will be greater.

CONCLUSIONS In this project, the emphasis is on the balance between the quality, cost and time. This procurement method allows the tenderer to propose the following: a. teaming up with their own MiC specialist sub-contractor b. their own site formation, excavation and lateral support system, and

foundation system c. alteration of the MiC-ready design and associated works d. offsite payment terms under certain restrictions e. quality assurance and check plan f. shortened contract period.

All of this flexibility, shown above, in the tender allows a more competitive bid to be submitted. The tender assessment system helps to ensure a technically feasible, commercially competitive and financially well considered tender to be chosen. With all of these measures, the tender bids submitted are within budget and comparable to the construction cost based on the traditional cast-in-situ method. The tender was awarded and we expect many more MiC projects will be launched in Hong Kong. It is believed that with the experience of these pioneer projects and with MiC method maturing, construction costs will be much lower than the current pricing. We expect that this project will be completed faster, better quality, economical with improved environmental sustainability and health and safety risks reduced in using the “MiC” method.

REFERENCES Article in a periodical Dr. Gerard Wood and Professor Angela Lee (2018) 3D Volumetric Construction. RICS Modus Nov - Dec pp.43-44 Paper in a conference Dr. Wei Pan, Yi Yang, Zhiqian Zhang and Sam Chan (2019) Modularisation for Modernisation. A Strategy Paper: Rethinking Hong Kong Construction; published by: Centre for Innovation in Construction and Infrastructure Development (CICID) The University of Hong Kong Paper by a company sharing Ho Kong Mo, Lam Jien Peng and Max Shea (2018) (Threesixty Cost Management Pte Ltd - Member of the Surbana Jurong Group) Pre-Fabricated PreFinished Volumetric Construction (“PPVC”) For Residential Projects https://surbanajurong.com/wp-content/uploads/2018/08/1.-PPVC-Final-.pdf

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LEGAL

COMBUSTIBLE CLADDING AND NATIONAL IMPLICATIONS: LEADING THE WAY

"

The opportunity for Quantity Surveyors to suggest an independent and efficient inspection regime prior to progress payments is real and the process is likely to be efficient and effective."

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LEGAL

INTRODUCTION The Victorian Cladding Taskforce (the Taskforce) was established in June 2017 following the 2014 fire at the Lacrosse apartment building in Melbourne and the 2017 fire at the Grenfell Tower in London to investigate the extent of non-compliant external wall cladding in Victoria and to develop recommendations to satisfy the public that fire safety issues were being addressed.

An interim report was released in November 2017 (the Interim Report) and in its terms of reference the Taskforce was further charged with providing strategic direction and oversight of the response to the Interim Report.

The final report was released in July 2019 (the Final Report) and the recommendations made can be classified into categories of inter-government response (State, Local Government and Administrative), rectification, legislative response and assessment framework.

The recommendations are made urgent by recent issues that have arisen with the Opal, Lacrosse and Mascot towers, and have many contractors and professionals checking their potential risk of liability.

The Victorian governments exemplary response to the issue of combustible cladding, and the key learnings in the Final Report, challenge other jurisdictions to act and address this issue nationwide. It is recommended that Victoria play a leading role.

The report deals with costs, risk and proper construction practices and opens a field in which the Quantity Surveyor should and must have a primary role.

Their other duties which call for them

to assess and value the progress of the works well equip them to ensure that all quality control procedures have been put into operation before certifying payment.

INTER-GOVERNMENT The recommendation is that the Victorian Building Authority (VBA) and City of Melbourne complete audits of identified priority buildings by the end of 2019 and continue to assess and inspect at risk buildings and extend this recommendation to be considered by other jurisdictions.

The Final Report recommends that the VBA engage with building owners and the insurance industry to develop a strategy to identify non-residential buildings containing combustible cladding and a process for rectification.

Similarly, the recommendation that all practitioners shall be required to undertake compulsory Continuing Professional Development on the National Construction Code suggests a national approach is required to holistically address the issue of combustible cladding within Australia.

The approach of mandating a government agency to undertake an inspection program with defined targets, may ultimately be more effective than a system of voluntary reporting or local government inspection that has been adopted in other states. The opportunity for Quantity Surveyors to suggest an independent and efficient inspection regime prior to progress payments is real and the process is likely to be efficient and effective.

Recommendations that Annual Essential Safety Measure (ESM) Reports be

certified by a suitably qualified person, with the registration of ESM maintenance contractors are worth consideration but should be subject to broader consideration as part of reform in the building industry.

The recommendations regarding the development of an assessment framework are crucially important as they provide context to the application of existing communication protocols and how they can be used to a greater advantage.

While the recommendation that a protocol must be established between the VBA and local government to establish mechanisms for cooperation etc may be worthwhile, it is likely that such mechanisms are already in place.

These recommendations and the possible actions by the Victorian government hold particular relevance to professionals working in the relevant fields and pose questions about the possible liability associated with combustible cladding.

Possible legal implications can be drawn from the subsequent cases following the Lacrosse Tower fire in 2014 and the Opal Tower faults that were revealed Christmas 2018.

The lacrosse fire resulted in a lawsuit which the builder, LU Simon, was ordered to pay $5.7 million, though Judge Woodward, who had presided over the case, found the architect, fire engineer and building certifier to have breached contractual obligations and were liable to pay 97% of the $5.7 million to LU Simon. The fire engineer Thomas Nicholas liable for 39% of the damages, certifier Gardner Group 35% damages and architect Elenberg Fraser liable for 25%. Remarkably, the builder, LU Simon,

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LEGAL

was a winner, assessed to pay only 3% of the damages to be recovered from the other defendants.

In his ruling, Judge Woodward found the architects Elenberg Fraser had failed to remedy ‘defects in its design’, which allowed the ‘extensive use’ of combustible cladding in the form of aluminium composite panels (ACPs) on the east and west facades of the building, and ‘caused the design to be non-compliant with the [Building Code of Australia] and not fit for purpose’.

In the case of the Opal tower, it has been recently revealed that there will be a classaction lawsuit in which residents hope to sue the NSW Government and the Sydney Olympic Park Authority (SOPA). It has been suggested that this case may have a flow-on effect for many cases of its kind, including acting as a possible precedent for the residents of the Mascot towers with its structural issues.

VICTORIAN BUILDING AUTHORITY The Final Report recommends that VBA: • be proactive in identifying emerging systemic issues, and further necessitates for the Victorian Government, the Commonwealth Government and other jurisdictions actively participate in open communication to allow for the swift identification and resolution of any systematic issues that emerge.

• be given appropriate authority to require rectification of defective building works, that the VBA continuously improves its compliance activities, commences a program of random inspections to

increase compliance and develops a strategy for oversight of building surveyors, including audits against code of conduct.

BUILDING INDUSTRY REFORMS It is recommended proactive action is taken by building industry bodies, practitioners and professionals to seek to improve the culture within the construction industry and that the Victorian Government consider introducing a statutory duty of care on building practitioners.

DEPARTMENT OF ENVIRONMENT, LAND, WATER AND PLANNING (DELWP) It is recommended that the DELWP and the VBA review the legislative and regulatory provisions relating to the disciplining of building, plumbing and architecture professionals in an effort to reduce delay and improve transparency, which could be later progressed as part of broader reform strategies, further, it is recommended that DELWP closely monitors and evaluates the effectiveness of the VBA’s increased inspection activity.

INSURANCE It is uncertain whether the Victorian Government can adequately negotiate with insurers to make a substantial contribution to the cost of rectification without a formed rectification framework being implemented prior.

It is recommended that future

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negotiations between insurers and the Commonwealth Government and the Victorian Government over building insurance and Professional Indemnity Insurance explore fallback options it is likely to be part of a broader debate around the construction industry.

The insurance industry has indicated a reluctance to insure where the risk is not quantified and the liability massive particularly for third party or consequential loss. The insurance industry will have a controlling stake and likely influence in the outcome of many recommendations

FRAMEWORK The Final Report recommends: • a risk assessment tool for domestic buildings be used in commercial / industrial buildings • a risk-based demand management strategy be developed to expedite work on highest risk projects and that a framework be developed to manage rectification costs.

The Final Report emphasises that further reform must place safety and consumer protection at the heart of the system.

This includes the role of the Clerk of Works (CoW) in the construction industry and strengthening the requirements of performance solutions including third party review.

Considerations include strengthening disclosure requirements, including requirements of owners to inform tenants if there is non-compliant combustible cladding on their building and that residential leases contain

LEGAL

information regarding any risk from combustible cladding present on the building.

It is recommended that the Victorian Government take a risk-based approach in funding the rectification of private buildings and implements a process to seek recovery of costs of rectification from responsible parties and that the DELWP should oversee the rectification of Victorian Government buildings.

address a new and present danger to the community. That contribution will be crucial to the development of an efficient and effective solutions rather than ineffective regulation at great cost with potential low returns.

This article has been provided by Doyles Construction Lawyers. www.doylesconstructionlawyers.com

However, it is unclear whether the recommendation that a new entity be created to oversee rectification is worthwhile or whether it can be achieved through other means. The suggestion that proposed solutions be independently approved by the Building Appeals Board, suggests the potential for overlap with existing administrative functions. The aims of the proposed dedicated authority would be to support stakeholders during the rectification process and if an authority was established, it recommends an engagement and communication strategy. This stresses that there are broader considerations in the building industry that must be resolved.

The Victorian Government search for a contribution to manage the rectification program form the Commonwealth Government elucidates to the need for a formation of a broader, national approach is required.

CONCLUSION Quantity Surveyors must involve themselves in the community discussion and the development and support of new industry delivery models to

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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 - SEPTEMBER 2019 - THE BUILDING ECONOMIST

BCI

BUILDING COST I N DEX SEPTEMBER 2019 THE BUILDING ECONOMIST - SEPTEMBER 2019 - 49