National Outlook Autumn 2009 by awardmagazine

nicola Grayson Tripping Over the Trade Practices Act

AUTUMN 2009

caroline ostrowski So What is Sustainability Anyway?

MATTHEW KING

What Effect is the Economic Downturn Having?

SHAYE cHAPMAN Ask a Lawyer - New Column

FOR THE BUILT ENVIRONMENT CONSULTANT

Sustainability SO WHAT IS SUSTAINABILITY ANYWAY?

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Contents Autumn 2009

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WHAT EFFECT IS THE ECONOMIC DOWNTURN HAVING? In its World Economic Outlook (WEO) update, the International Monetary Fund (IMF) has drastically revised down its forecast for the global economy since the November 2008 WEO update and has called for further action to support growth.... MATTHEW KING

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DOES YOU RISK ASSESSMENT EXPECT THE UNEXPECTED? A SATISFACTORY RISK ASSESSMENT MUST ANTICIPATE POSSIBLE MISHAPS, AS WELL AS THE POTENTIAL BAD HABITS AND SHORTCOMINGS OF EMPLOYEES.... NEIL BASSETT

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Columns From the President From the CEO Industry News Practice & Procurement Contracts & Liability PI Insurance Sustainability Economics & Taxation Skills & Resources OHS Infrastructure NEW! Ask a Lawyer Marketing Roundup State News

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AUTUMN 09 National Outlook

ASK A LAWYER WITH THE INTRODUCTION OF BUILT ENVIRONMENT LEGAL (BEL), OUR NEW MEMBER SERVICE, WE HAVE INTRODUCED AN EXCITING NEW SECTION TO NATIONAL OUTLOOK. MEMBERS NOW HAVE THE OPPORTUNITY TO HAVE THEIR LEGAL QUESTIONS ANSWERED BY BEL’S EXPERIENCED STAFF THROUGH ‘ASK A LAWYER’.

from the president Paul Reed is the President of the Association of Consulting Engineers Australia and WA Regional Director for consulting engineering firm, Parsons Brinckerhoff Australia

MARCH 2009 I am honoured to be taking on the role as your National President but also a little daunted at the challenge that this will represent as our respective businesses and the industry generally responds to and deals with the global financial crisis. I am looking forward to the next two years working with you and on your behalf to continue the great work over recent years carried out by Megan Motto and her team as well as Dennis Sheehan, my immediate predecessor in the role of National President. However, as I have reflected on this challenge over the last few weeks I have come to realise that it is in these more challenging times that an industry association should be at its most efficient and effective in its efforts to work to the benefit of all its member firms. In particular, the representative role that ACEA can play must be used to good effect in influencing key policy decisions from Federal, State and Local Governments with respect to investments that will deliver work to our member firms.

I am extremely fortunate to be working with a very effective and well connected policy team in the National office of ACEA. The Association has built an enviable reputation within the Federal and State Government spheres as a reliable and consistent representative of the industry that operates within the built and natural environment. I expect that reputation and the contacts that the team has established in Canberra and with other Governments will stand us in good stead as we move to push the case for quick and effective decision making. I am also observing the impacts that a far more competitive market is having on the views of our clients. There is increasing evidence that clients have high expectations of markedly reduced rates in response to the financial crisis. This is generally a matter for direct negotiations between consultant and client. However, I believe that the Association at both a National and a State level can be used to good effect to deliver a consistent and factually based argument that these expectations are unrealistic and that our businesses operate largely through a permanent staff base and that rates in the market reflect market salaries that have not been reduced.

As you and your teams face the significant challenges that lie ahead, I would encourage you to seek the support and assistance of ACEA, particularly where you feel a more generic, industry wide approach is appropriate and justified. The ACEA team will work with you and your colleagues to develop a strategy to use the combined weight of influence of the Association to achieve beneficial change. At the same time of course the normal program of the Association’s activities will continue and I would encourage you all to regularly review the Chief Executive Update to keep abreast of the details of that program.

Paul Reed ACEA President

The Federal Government has signalled its intention to direct very significant funding into infrastructure programs. We have to ensure that the decisions needed to deliver on that policy intent are encouraged to be made in a timely fashion to allow those projects to fill the gaps created by the sudden downturn in demand for Australia’s resources and the flow on effects across the economy.

National Outlook Editor Frances Lemon Sub-editor Nicole Brown Advertising Enquiries Showcase Publications (02) 9211 7422 National Outlook is produced by the Association of Consulting Engineers Australia (ACEA). Ph: (02) 9922 4711. Website: www.acea.com.au

President Paul Reed Chief Executive Megan Motto National Operations Manager Julia Lemercier National Marketing Manager Frances Lemon National Policy Manager Nicola Grayson Policy Officer Matthew King Policy Officer Caroline Ostrowski Policy Officer Neil Bassett Education & Training Officer Anjela Currie Education & Training Assistant Daniel Condon Marketing Coordinator Nicole Brown Communications Coordinator Hugh Peinke Finance & Membership Coordinator Sylvia Suen Executive Assistant (CEO & Policy) Kerri Clifford Executive Assistant (Operations) Leena Moorjani Editorial Submissions GPO Box 56, Sydney NSW 2001 National Outlook © 2009. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, internet or otherwise, without the prior written permission of the publishers. While every effort has been made to ensure the accuracy of the information in this publication, the publishers accept no responsibility or liability for any errors, omissions or resultant consequences including any loss or damage arising from reliance on information in this publication.

National Outlook AUTUMN 09

This Magazine has been printed with Vegetable Based Inks using Certified Environmental Management System ISO 14001, on Monza Recycled Satin made from FSC mixed source certified and 55% recycled, 30% postconsumer & FSC pulp.

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WHAT WALL SYSTEM HAS TAKEN APARTMENT SEPARATION TO THE NEXT LEVEL?

BORAL INTRWALLTM Boral IntRwall ™ is the next generation of the highly successful Eurekawall® separating wall system for apartment buildings. Based on the same panelised construction principles, Boral IntRwall ™ represents the latest advancement in lightweight fire rated and acoustic rated technology, offering reduced construction costs and narrow footprint without compromising on performance. IntRwall ™ is available in fire-ratings up to FRL - /120/120 and acoustic ratings up to Rw+Ctr =56dB. For more information on IntRwall ™ separating wall system please contact Boral TecASSIST on 1800 811 222 or visit www.boral.com.au/intrwall System 50IW13S13 illustrated

from the ceo Megan Motto is Chief Executive of the Association of Consulting Engineers Australia.

MARCH 2009 Writing this column for the first time this year, I am critically aware of the enormous challenges ahead in 2009 for our members and our industry. The global economic meltdown is well and truly being felt in Australia, and ACEA will be responding on a number of fronts. Internally, this will be a time when more than ever, members need support and advice on how to run leaner and increasingly professional businesses. ACEA training seminars and courses, our first annual Conference in many years and our contract advice service through the newly established Built Environment Legal will help to provide that valuable support. I encourage all members to turn to the Association for help with business services during these difficult times. However possibly more valuable to members for the immediate and long term future is the policy guidance that ACEA will provide to the Australian government in rolling out the various stimulus packages aimed at injecting

confidence and certainty back into the market. Additional spending on transport, education and health infrastructure is a welcome move, however such infrastructure needs to be designed so as to take into account a range of other social and environmental challenges we face in our future. Whilst the government is looking to act quickly to secure Australian jobs, this is not a time to ignore the lessons we have learnt in the past about the long term value of good design. It is also equally important that policy solutions to various issues are integrated in such a way as to give the best bang for our buck. In this way, ideas such as Green Depreciation (accelerated depreciation schedules for buildings that meet certain energy efficiency targets) are a smart approach to killing two birds with the one stone. We also must look to good design in the rebuilding of communities in the wake of the disastrous Victorian bushfires. It is through intelligent and thoughtful engineering and design that we seek to future proof ourselves against the extreme weather conditions that Climate Change experts predict will be more common in the years ahead.

Speaking of the terrible tragedy of Black Saturday, our thoughts and hearts go out to all members affected by the fires. Ken Mival, our Victorian Division Chair lost his home in the fires and Iâ&#x20AC;&#x2122;m sure that all members would join me in sending our best wishes to Ken as he rebuilds. ACEA has joined with the Victorian Government in the effort to coordinate relief and rebuilding expertise in the affected areas. On a final and personal note, I would like to that all members who sent their well wishes to me on the birth of my son, Kaden Alex Ng, on 10 December last year. I have just returned from Maternity Leave and look forward to catching up with many of you in the busy year ahead. Paul Reed, our new President and I will be travelling to each of the states in the coming months to discuss our change management program and various other issues, and I encourage all members to attend those meetings and actively participate in the development of your Association.

Megan Motto Chief Executive

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National Outlook AUTUMN 09

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a hot product or waste is cooled. If this heat has previously been allowed to dissipate to atmosphere then wash down water used for wash down showers etc, is basically heated for FREE. No energy No green house gases, Minimal cost. It is opportune to define some of the features which distinguish ‘Dimpleflo’ and ‘Dimplestream’ tubular heat exchangers: Designed and manufactured in Australia. Flexibility in heat transfer design to meet specific dimensional or functional requirements. Unique Dimple profiled Monotube enables a self-draining, high efficiency heat exchanger that is virtually unblockable. Dimple Profile to promote a highly turbulent flow and thus maximize heat transfer coefficients. Can be constructed using corrosion-resistant alloys such as 2205 Duplex and Titanium. Short lead times. Requires minimal maintenance.

For further information on how Dimpleflo Heat Exchangers can reduce your energy bill and environment, please contact Teralba Industries: IN AUSTRALIA; Phone: 02 4626 5000 Web: www.teralba.com Email: sales@teralba.com IN NEW ZEALAND; Aurora Agencies Phone: 07 847 5315 Email: sales@auroraagencies.co.nz

EASY CHOICES!

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THE PATHWAY TO SELECT AN INSURANCE BROKER JUST GOT EASIER YOUR BENEFITS ACEA took the hassle away by selecting a committed and expert panel of brokers to serve the interests of ACEA member firms with their insurance needs. It puts you in control by offering you appropriate coverage for your specific business requirements by brokers who want to help you find the right coverage and who understand your business. Why settle for the same broker? Have you foregone coverage for cheaper premiums? Whoever you are and whatever your budget, ACEA PI Pathway promises you dependable cover that will keep you feeling safe.

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To get a quote please visit: www.acea.com.au/pipathway

ACEA’s PI Insurance Pathway gives ACEA members access to the PI market through a Panel of Brokers selected by ACEA. ACEA is providing a referral service only and is not providing any form of financial advice or offering a financial product. ACEA does not guarantee the value, price and terms of cover that may be received from any member of the Panel of Brokers. Any agreement entered into through use of the PI Insurance Pathway will be expressly between the Panel Broker and the ACEA member firm. ACEA will receive a $100 referral fee from the Panel Broker when it places insurance on behalf of an ACEA member.

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INDUSTRY NEWS

NEW TECHNOLOGY TO SLASH COMMERCIAL ENERGY CONSUMPTION COMPANIES THAT USE LARGE AMOUNTS OF ELECTRICITY CAN SLASH THEIR ENERGY CONSUMPTION BY 15-30% AND SIGNIFICANTLY REDUCE THEIR CARBON FOOTPRINT WITH A NEW TECHNOLOGY LAUNCHED IN AUSTRALIA. Warren Ingerson, Managing Director of Satel Pty Ltd, the Australian distributor of Hypermizer, said this product is the only one of its kind in the world that can deliver such significant power savings. Traditional energy saving equipment already on the market is considerably less effective than the Hypermizer system. “With the increasing cost of electricity and the impending tax on carbon emissions, this technology represents an opportunity for energyheavy companies to make significant bottom-line savings,” Mr Ingerson said. The Hypermizer System™ is a combination of power controller and software that improves the performance of electrical equipment by stabilising the volatility of electricity supply, thereby reducing consumption, wastage and costs. It also prevents spikes and surges in power, improves load efficiency and reduces heat associated with electrical loads – thereby extending the life of electrical equipment. Mr Ingerson said that while the Hypermizer system can be adapted to virtually any commercial power system, it is particularly useful for businesses that use large amounts of energy, such as hotels, hospitals, shopping centres, manufacturers, airports and supermarkets. It can also generate substantial cost savings for mining operations, street lighting, schools, libraries and office blocks.

“This technology has already been successfully installed in nine countries around the world and is now available in Australia via Satel Pty Ltd,” he said. “Australian businesses involved in pre-launch testing of the Hypermizer – including a major supermarket chain and a major hotel group – have been highly impressed with the substantial electricity savings the product has generated.”

ROSS HITT NEW CEO OF SNOWY MOUNTAINS ENGINEERING CORPORATION

“With the price of electricity high, and likely to go much higher as a result of carbon trading arrangements, this is one area where energyhungry companies can make significant savings very quickly.”

ROSS HITT HAS BEEN APPOINTED CHIEF EXECUTIVE OFFICER OF SMEC HOLDINGS LTD, ONE OF THE COUNTRY’S LEADING ENGINEERING AND DEVELOPMENT CONSULTANCIES.

In addition to taking costs straight off the bottom line, Hypermizer will produce substantial improvements in energy efficiency, which Australian companies are now required to audit and publicly report on each year under the Energy Efficiencies Opportunities legislation.

For the past four years, Mr Hitt had overseen the rapid expansion of SMEC’s international operations as Managing Director of SMEC International Pty Ltd. SMEC, which has its origins in the Snowy Mountains Scheme, has current operations in more than 50 countries and has 25 offices in Asia, Africa, the Middle East and the Pacific.

“To ensure that customers get a complete understanding of the benefits of the Hypermizer system to their business, we first conduct our own audit of energy usage to determine exactly what the anticipated costs savings are likely to be,” Mr Ingerson said. The Hypermizer system has at least a 10 year life span and is priced to break even after just 2 to 3 years. The technology has been proven to be reliable and stable and is backed by world-class quality testing and certification. All units are manufactured in line with ISO 14000 environmental management standards to ensure a minimal environmental impact.

“SMEC is well positioned in the marketplace,” Mr Hitt said. “Despite the current economic recession, SMEC is continuing to experience record growth, both in projects and personnel, and that’s largely to do with the fact that we run a robust business with a broad geographic spread and great technical diversity.” “Our work-in-hand is at record records, we have a good portfolio of infrastructure projects, and our range of clients in the private and public sectors includes many government or government-backed projects as well as high profile corporate contracts.”

“Companies wanting to find out more about how the Hypermizer system can benefit their business can call 08 8366 1200 or visit www.satel.net.au.”

Mr Hitt has more than 30 years’ experience in all phases of major engineering and development projects and has a strong background in working with international finance institutions such as the World Bank, the Asian Development Bank and UN agencies. In addition to Australia, he has worked and lived in a number of countries throughout Africa, South Asia and the Middle East.

For more information, contact: Warren Ingerson Managing Director, Satel Pty Ltd Phone: 0414 888 455

Peter Busbridge, who had been CEO since 2004, will remain as a director on the Board of SMEC Holdings Ltd.

“Hypermizer is a unique, effective and proven technology that will deliver substantial energy and cost savings to businesses, as well as making a significant contribution in the fight against climate change,” Mr Ingerson said.

AUTUMN 09 National Outlook

industry news

NEW APPOINTMENT PRINCIPAL STRUCTURAL ENGINEER Sustained core business growth has led Izzat Consulting Engineers to appoint a Principal Structural Engineer in their North Ryde office. Jon Holdsworth has joined the Company to pursue a pivotal role in providing hands-on support to a range of projects from conventional structural design, through to structural assessment and rehabilitation works. Jon will also provide strategic support to the Izzat Consulting Engineers management team in further defining the development strategy that supports future growth, particularly in the Sydney region.

Jon has a BEng (Hons) degree from Leeds University and his background includes significant exposure to a wide range of structural engineering projects in the United Kingdom, New Zealand and Australia. His experience encompasses lead roles in major commercial and industrial projects that have required innovative solutions to achieve a planned outcome. Izzat Consulting Engineers General Manager, David Naylor, believes that “Jon will make a significant contribution to the development of the business and also act as a great role model for the firm’s emerging talent pool of young engineers”.

AWN AND GOLDER ASSOCIATES JOIN FORCES AWN (Air Water Noise) Consultants and Golder Associates Pty Ltd have joined forces to become the Australian leader in air quality and environmental services. Golder Associates Managing Director, Mr Darren Watt, said the merger would magnify the market power of both companies.

ACEA NEWS new member firms SGS Western Geotechnics Pty Ltd Brock & Associate TCG Consulting Engineers Pty Ltd Neilly Davies & Partners Pty Ltd

firms applying for membership

Becker Rosier Engineers Pty Ltd Frank Soto & Associates Pty Ltd Algorry Zappia & Associates Pty Ltd Andreotta Cardenosa Consulting Engineers Klohn Crippen Berger

“There are many natural synergies. Our people are technical experts in their fields, our services are highly complementary, our brands are respected and we share the same strategic vision. Merging our air and environmental businesses is an astute decision,” Mr Watt said. AWN Managing Director, Mr Frank Fleer said staff, clients and prospective clients would realise many advantages. AWN and Golder Associates have worked on a number of projects together during the past five years. The formal merger will allow future expansion. For further information contact Sally Wilkes at swilkes@golder.com.au

NEW FIRE SAFETY REGULATIONS IN NSW The ACEA NSW Fire Safety Engineers have run a vigorous campaign against some aspects of the proposed NSW Environmental Planning and Assessment Amendment (Compliance Certificates) Regulation. The ACEA maintained that the Regulation would create cost and time delays to construction projects whilst adding no benefit to community fire safety. As a result of the lobbying effort, changes to the Environmental Planning and Assessment Regulation were gazetted on Friday 14 November 2008 by the NSW Parliament. A summary of the key changes are: • Compliance certificates are no longer required for alternative solutions if the designing fire safety engineer is accredited. • Compliance certificates will only be required where the designing fire safety engineer is not accredited. • Projects that are the subject of an alternative solution will require a sign-off by an accredited fire safety engineer before the issue of the occupation certificate. This sign-off can be provided by the original fire safety engineer. • Compliance certificates may still be required by some certifiers as a condition of their accreditation with the Building Professionals Board. Nicola Grayson

National Outlook AUTUMN 09

INDUSTRY NEWS

PB AND ANU WIN FEDERAL GRANT FOR RESEARCH INTO PRECIOUS NSW GROUNDWATER THE AUSTRALIAN RESEARCH COUNCIL (ARC) HAS AWARDED PARSONS BRINCKERHOFF (PB) AND THE AUSTRALIAN NATIONAL UNIVERSITY (ANU) A$180,000 GRANT FOR THEIR THREE-YEAR GROUNDWATER CHEMISTRY STUDY IN THE LOWER MURRUMBIDGEE CATCHMENT IN SOUTH-WEST NSW. The linkage project is a collaboration between PB’s Dr Wendy McLean and Drs D C ‘Bear’ McPhail and Marc Norman from ANU. Dr McLean explains the PB/ANU project is hydrogeochemical study of the Lower Murrumbidgee groundwater system within the Murray Darling Basin. “The current water sharing plan is based on the limited quantitative data available about the Lower Murrumbidgee catchment.” “The PB/ANU study will enhance our understanding of the groundwater dynamics in

the catchment, including the interaction between irrigation water, groundwater and surface water.”

and aquifer linkages in the Lower Murrumbidgee aquifer system.”

“Using current and new laboratory equipment and procedures we will identify and measure isotopes at low levels to determine sources and flow rates of groundwater and the impacts of groundwater and irrigation on water flows and quality.”

The project team will begin sampling next month and will provide annual reports to the Federal Government on their findings.

“The results and understanding from this work will assist those who manage the major alluvial groundwater systems in the Murray Darling Basin – it will help us advance our understanding of this precious natural resource.” “Our aim is to use a relatively little-used isotope technique (Uranium-series) in conjunction with the conventional hydrogeochemical and isotopic techniques to better understand the hydrogeological systems in rural Australia.”

The three-year project is estimated to cost $900,000. ARC is providing $180,000 which includes a funded fellowship for Dr McLean from PB to ANU. PB is providing $105,000 cash contribution and $150,000 in kind contribution over the study period. Research title: “Groundwater dynamics and surface water interactions in the Lower Murrumbidgee Catchment, NSW: Enhancing understanding with new isotopic methods.” For more details contact Elaine Hill at E1hill@pb.com.au

“In the process we will address current knowledge gaps in the extent of recharge

SKM RECEIVED GLOBAL ACHIEVEMENT AWARD SKM HAS BEEN A KEY PLAYER IN ALL MAJOR BUS WAYS DEVELOPED IN BRISBANE, AND BRISBANE'S WORLD LEADERSHIP IN THE ADOPTION OF A COMPREHENSIVE, INTEGRATED BUS WAY NETWORK. Leading engineering, sciences and project delivery firm, Sinclair Knight Merz (SKM) has been recognised by the well regarded Environmental Business Journal with a Gold Medal for Business Achievement. The Award, in the Large Firms category for organisations with revenues greater than US$100 million, will be officially presented to SKM next month at EBJ’s Environmental Industry Summit in San Diego. It recognises SKM’s outstanding revenue growth of approximately 30% annually over the past five years. In 2007-08, SKM’s revenues broke the A$1 billion barrier for the first time. SKM Water & Environment General Manager, Geoff Linke said the Award from a highly respected environmental industry publication

is also recognition of the firm’s growing global ability to service clients in dealing with significant environmental issues.

“This is a clear vindication of our ownership model, balance sheet management and conservative risk taking values,” Mr Linke added.

“Aside from our traditional markets in Australia and New Zealand, we are now bringing our skills to clients in the United States, Europe, South America and across Asia, on a range of water and environmental projects,” Mr Linke said.

SKM employs about 6,500 staff in almost 50 offices around the world.

“For instance, we have leveraged off our successful work in delivering major desalination projects in Australia to win a role on a proposed new desalination facility on the north eastern coast of Florida,” he said. “We are also providing advice to clients in growing market areas such as sustainability, climate change and natural resource management.” “In terms of the sustainability of our own business, it is worth emphasising that SKM is in a strong business position.” “We have effectively no debt and, as a private, employee-owned business are not subject to the vagaries of the public markets.”

In the Water and Environment market, the firm has a global alliance with leading US environmental consultancy, Malcolm Pirnie Inc. SKM staff come from a diverse range of disciplines including engineers, planners, architects, economists, scientists, project managers, technicians and administrative staff. They work across seven broad markets: Buildings & Property; Defence; Power & Industry; International Development Assistance; Transport Infrastructure; Mining & Metals; along with Water & Environment. For further information, contact Alex Paton on 02 9928 2476.

AUTUMN 09 National Outlook

industry news

RedR AUSTRALIA SEEKS VOLUNTEERS 2008 in review: disasters and emergencies Cyclone Nargis in Myanmar (Burma), earthquakes in China, and floods in India impacting on the equivalent population of Australia were the big natural disasters of 2008, but manmade emergencies associated with conflict probably impacted on more lives during the year.

The military government of Burma proposed that it would manage without external help, and only ASEAN-sponsored negotiations opened the doors to international personnel and supplies. Red Cross figures have 84,500 people killed, another 53,800 whose bodies were not found (most drowned and swept out to sea) and 2.5 million affected. Pause for a moment, and re-read those figures. There were other calamities. Drought and food shortages imperiled thousands in Ethiopia.

Perhaps the sharpest disaster image of 2008 was vision of Chinese rescue workers scrambling on foot over remote mountain ranges to reach victims of the May earthquake in Sichuan province. Measuring 7.9 on the Richter scale, the quake left tens of thousands of people isolated after roads were destroyed and helicopters had nowhere to land.

Flooding in Nepalese river valleys was severe, but the waters were devastating when those rivers crossed into India. World Vision estimates that close to 2,500 people died and 22 million more were made homeless or placed in severe hardship.

While the Chinese people worked feverishly to rescue survivors and then to repair damage, grief and anger were heightened following revelations that many schools full of child fatalities were reduced to rubble in part due to questionable building standards.

In March a storm of cyclonic proportions tore through parts of Austria, Germany, Poland and the Czech Republic, with loss of life and much structural damage. Deaths and damage from January storms and snow dumps in western Canada and the US Pacific coast also entered the 2008 chronicle of disasters.

Over 80,000 people died and a staggering 375,000 were injured. Five million people were left homeless (this equates to the population of Victoria). While Chinese resources led the remarkable recovery effort in that country, the work coincided with the year’s other major disaster relief operation in Myanmar where local resources were no match for the human misery generated by Cyclone Nargis and its associated tidal surges and storms in the densely-populated Irrawaddy delta region near the coast. Villages up to 80km inland lost infrastructure including roads, bridges, and water supplies. Crops and fishing jetties in huge quantities were also destroyed. International mobilisation for the survivors exposed to great risk of cholera and typhoid due to water contamination was swift, given personnel and supplies were stranded for several weeks in Bangkok. Disaster relief organisations constantly confront operations without sufficient financial backing to reach all who need urgent help. In a frustrating twist, the Myanmar circumstance displayed the reverse; need obvious, resources ready, but access denied.

National Outlook AUTUMN 09

The same number represents the entire population of Australia!

While accurate statistics do not exist, deaths and injuries from conflict, dislocation of people escaping fighting, and the chronic food and medicine shortages associated with conflict-disrupted supply, seem certain to have exceeded the tolls of death and destruction due to natural disasters this year. Reduced numbers of casualties in Iraq over recent months has been welcome news but earlier in the year many weeks of heavy fighting and sporadic attacks generated literally thousands of civilian casualties, the exact number being unknown to anyone. Within the volatility and unpredictability of heavy shelling and street fighting, supplies of food, clean water and medical supplies impacted severely on the most vulnerable groups, including children, the elderly, and people who have lost a breadwinner in the long-running war. Thousands of measles cases were reported in Iraq, highlighting the breakdown of any vaccination program during the war.

Direct strikes on municipal water infrastructure, hospital facilities and schools produce a longterm impact on people after the television cameras have left the scene. In Afghanistan, the renaissance of the Taliban in parts of the country resisting the westernbacked government has been characterised by suicide bombings, mortar and rocket attacks. The targeting of crowded marketplaces and the use of vehicles in the streets as car-bombs have resulted in civilian categories on a fearful scale. In virtually every other war zone the situation was repeated to a greater or lesser degree, as aid agencies tried desperately to provide protection and relief for civilian victims; difficult at the best of times, more daunting when open conflict is ongoing, such as in Somalia. Darfur in Sudan’s west continues to be the scene of great suffering, with 300,000 deaths and more than two million homeless since 2003. In 2008, the media focus on Sudan was down but aid agencies retained Darfur near the top of lists of ongoing humanitarian concerns. The Democratic Republic of Congo hosted conflict and misery-causing displacement which threaten to engulf several nations in the central region of Africa. The Russian occupation of Georgia displaced thousands of civilians fearful for their lives, with international agencies mobilised primarily from Europe, while diplomatic efforts were applied to restore a measure of stability to a nervous region. The world waited and watched for the anticipated civil strife in Zimbabwe with tens of thousands of people predicted to cross borders in South Africa and Zambia, associated with the disputed election, unheard-of rates of inflation, and shortages of food and medicine. Approaching year’s end, the cholera outbreak sent thousands into neighbouring countries seeking treatment. If cholera fails to take some victims, starvation may do so. For the international aid agencies, 2008 was a year of stretching resources to wafer thin. For the people needing help, hundreds of thousands were denied. Nature’s forces and inhumanity, sometimes in combination, meant that for many victims, a blanket or a bottle of clean water was too much to expect.

INDUSTRY NEWS

World Food Programme’s 2009 forecast for the Horn of Africa is grim. WFP lists 17 million people needing urgent food aid between now and June in Ethiopia, Somalia, Djibouti, northern Kenya and northern Uganda. Drought, high food prices and conflict in Somalia and parts of Ethiopia are the root causes, and in some places the situation is already critical. Almost 500,000 tonnes of food aid is the presently predicted shortfall to June. How would you go about buying, storing, then delivering half a million tonnes of food across a region with few roads and half the size of Australia? Natural calamities, predicted increased frequency of extreme climatic events (wet, hot, cold, cyclonic, tidal), and long-term manmade emergencies present a daunting horizon ahead. And that was before the world economic crisis cast its own heavy shadow over mankind’s ability to rescue those whose lives have been shattered.

Alan McLean, CEO, RedR Australia RedR Australia provides emergency assistance to communities devastated by conflict or major natural disasters by selecting, preparing and deploying competent and effective personnel to humanitarian relief programs worldwide. In 2008, RedR Australia arranged 60 field assignments for Australians in disaster and emergency relief operations, in response to calls for trained personnel from UN relief agencies UNHCR, UNICEF, World Food Programme, and the Office for the Coordination of Humanitarian Assistance (UN OCHA). For more information contact Alan McLean on 0412 143 660

ALLIANCE NAMED TO BUILD NEXT STAGE OF EASTERN BUSWAY (QLD)

GHD EXPANDS TO INDIA

THE QUEENSLAND GOVERNMENT HAS ANNOUNCED THE ALLIANCE TEAM TO START CONSTRUCTION OF THE BURANDA TO MAIN AVENUE SECTION OF THE EASTERN BUSWAY.

INTERNATIONAL PROFESSIONAL SERVICES COMPANY GHD IS EXPANDING ITS GLOBAL PRESENCE WITH THE ESTABLISHMENT OF A REPRESENTATIVE OFFICE IN INDIA.

Transport Minister John Mickel said Leighton Contractors had been selected to join the Queensland Government and Sinclair Knight Merz - Maunsell AECOM to design and build the next section of the Eastern Busway.

The office with be located in Hyderabad in south-central India and will focus on developing new opportunities for GHD in key market sectors as well as extending support to the delivery of core projects in India and the wider South Asian region.

"Five construction companies responded to the government's call for proposals and an intensive evaluation process determined the winning bid," Mr Mickel said. "Queensland Transport is confident it has selected the best team to deliver the congestion-busting Buranda to Main Avenue section of the $465.8 million Eastern Busway project.” "The Eastern Busway (Buranda to Main Avenue) will deliver fast, frequent and reliable public transport for the eastern suburbs.” "The busway will provide Brisbane public transport users a cleaner and greener way to get around and will cut up to eight minutes off bus trips to the city.” "By 2016 the Eastern Busway will carry 7,000 passengers in the morning peak - this is equivalent of two extra traffic lanes along Old Cleveland Road.” "Work is set to commence in mid 2009, but the alliance has hit the ground running and local residents will start to see project team members out and about in the project corridor in coming weeks." Mr Mickel said project officers would be at Buranda, Stones Corner and Coorparoo to perform a range of technical surveys and investigations. "These investigations will build on work undertaken in the planning phase and provide more information about geotechnical and environmental conditions to help with the project's design and construction," he said. The 1.05km Buranda to Main Avenue section of the Eastern Busway is due for completion by early 2012, and will connect the existing South East Busway at Buranda with Coorparoo via Stones Corner in a combination of tunnel, bridge and at-surface busway. A state-of-the-art busway station will be built at Stones Corner with a high-quality bus stop at Langlands Park that offers protection for a future busway station.

Ramesh Subramanian and Anjana Beniwal, who have been based in GHD’s Manila office for the past two years, will manage the office. They bring experience in project management, marketing and international development assistance. India is ranked among the most promising emerging markets in the world, with real GDP growth averaging more than 8 per cent over the past five years and a population of more than 1.1 billion. The Indian government is investing heavily in infrastructure development in the urban, transport and energy sectors, and its liberalisation policies have facilitated a significant flow of private investment, including foreign funds, into the country. Mr Subramanian said the enormous demand for infrastructure development in the country presented considerable opportunities for GHD to develop its market position. “Our experience in India to date has centred on project design and delivery for our International Development Assistance business, but we are keen to develop new marketing business opportunities in India and broaden our services and technical capability,” he said. “GHD is enthusiastic about contributing to India’s development in the water, energy, mining and urban infrastructure areas.” GHD has delivered high-quality solutions to clients in India since 1992. The company has helped to develop a water and wastewater master plan for Bangalore city and has executed a World Bank-financed road construction project in India’s north-east. GHD has an established presence in the region, with offices in the Philippines, China, Hong Kong, Vietnam and Malaysia. For more details contact Mandi Zonneveldt at mandi.zonneveldt@ghd.com.au AUTUMN 09 National Outlook

PRACTICE & PROCUREMENT Nicola Grayson heads the policy team at the Association of Consulting Engineers Australia’s National office in Sydney. Her portfolios include Procurement & Practice and Contracts & Liabilities. Nicola can be contacted at nicola@acea.com.au

TRIPPING OVER THE TRADE PRACTICES ACT IT IS IMPORTANT THAT THE ACEA AND ITS MEMBERS UNDERSTAND THE TRADE PRACTICES ACT 1974 (TPA) IN REGARD TO THE RESPONSIBILITIES OF THE ACEA AND ITS MEMBERS. THE ACEA HAS DEVELOPED A PRACTICE NOTE SETTING OUT THE RELEVANT PROVISIONS OF THE TPA AND DESCRIBES THE CONSEQUENCES OF CONTRAVENTION.

Restrictive Trade Practices (Part IV of the TPA)

The ACEA provides opportunities for members to take part in a range of meetings, discussions and events. These networking opportunities bring competitors in the consulting engineering industry together. The Trade Practices Act 1974 (TPA) contains a broad range of prohibitions against certain types of arrangements and understandings between competitors. When competitors come together they can be involved in a contravention of the TPA, either innocently or otherwise. There are a range of breaches under the TPA including informal arrangements and understandings as well as formal contracts. These breaches do not necessarily require that the parties were intending to breach the TPA with the purpose of being anti-competitive. These are explored in the Practice Note and can include, for example: Exclusionary Provisions These arrangements are often called ‘group boycotts’ or ‘collective boycotts’. This means that the ACEA and it members may breach the exclusionary (collective boycott) provisions of the TPA if ACEA and its members (who are competitors) arrived at an understanding that they will withhold the supply of their services to a particular client or group of clients. This could happen, for example, if some of ACEA’s members arrived at an understanding that they do not like the provisions in a particular Request for Tender and will withhold or limit the supply of their services. It is important therefore that the ACEA does not make recommendations regarding a specific course of conduct to its members, such as withdrawing from the tender process or restricting or otherwise limiting the supply of their services to the person issuing the contract or tender. This does not prevent each of ACEA’s members from arriving at their own decision and independently taking a decision to withhold or limit the supply of their services. This decision must be the choice of each member independently and separately. 12

National Outlook AUTUMN 09

Price Fixing It will be found that competition in the market has been lessened if a provision of a contract, arrangement or understanding has either the purpose of or, the effect of or, is likely to effect, fixing, controlling or maintaining the price of goods or services supplied or acquired by the parties which are in competition with each other (TPA section 45A). This means that wherever it is found that a provision in a contract or arrangement or understanding is reached between competitors on price it will be defined as lessening competition and breach the TPA. This is why ACEA is no longer able to publish fee scales, because determining the fee scale means that ACEA and its members (competitors) have reached an understanding on the fees for consulting services, which is likely to have the effect of controlling or maintaining the price for those services. Under the TPA this is strictly defined as lessening competition in the market and is therefore a breach of its provisions. Anti-Competitive Agreements These are simply agreements that have the effect of substantially lessening competition in a market. This is to catch activities, other than price fixing, that can have the effect of reducing competition. The ACEA and its members must take care not to enter into understandings, arrangements or agreements that can have the effect, whether intentionally or not, to reduce competition in the consulting engineering industry. For example, an agreement between competitors to ‘share the market’, i.e. consulting engineering firm A agrees to only supply services to clients A-J and consulting engineering firm B agrees to only supply services to clients K-Z.

Penalties Breaches of the provisions of the TPA (Part IV) can expose the ACEA and its members to: Pecuniary penalties; Damages actions brought by third parties; and Injunctions, declarations and other orders.

There are currently no criminal sanctions for breach of Part IV (Restrictive Trade Practices) of the TPA. However the Federal Government is proposing to introduce legislation making serious cartel conduct a criminal offence. A ‘cartel provision’ is a provision of a contract or arrangement, or understanding that relates to price-fixing; restricting outputs in the production and supply chain; allocating customers, suppliers or territories; or bidrigging; by parties that are (or would otherwise be) in competition with each other. Guidelines for the ACEA and its members The ACEA and its members should avoid: 1. Signaling their pricing intentions or entering into any discussions on actual prices or the underlying components which may be determinative of actual prices. 2. Entering into a contract, arrangement or understanding that may restrict, prevent or limit the persons to whom products or services may be supplied or acquired. 3. Entering into agreements that substantially reduce competition in the market. 4. Exchanging sensitive information which could give rise to trade practices issues, as well as issues in relation to privacy and confidentiality. 5. Engaging in communications that are not drafted with care and consideration. A poor choice of words can make a legal activity look suspicious. The ACEA and its members should: 1. Make individual and independent decisions regarding their actions in the market place. Decisions should be commercial in nature having regard to an open and competitive market. 2. Seek legal advice as necessary to assist in the identification of areas that may give rise to competition issues. A copy of the full Practice Note is available to the ACEA membership through the website, www.acea.com.au see: member’s only/publications/practice notes/legal advice/4.06 ACEA Member’s Obligations under the Trade Practices Act 1974. Nicola Grayson

PRACTICE & PROCUREMENT

ONLINE DOCUMENT MANAGEMENT SYSTEMS: ARE YOUR PROJECT RECORDS AT RISK? The ACEA has published a new Practice Note to provide guidance on the use of online document management systems. These are online management systems that use the internet to manage information for projects in, for example, construction, engineering and facilities management.

These systems have been developed because of the volume of documents that projects can generate and the high level of information that is exchanged. Many online systems claim to be able to securely manage the storage of all project data as well as facilitating the flow of information between the parties.

A number of risks can arise that should be considered and managed before using such systems.

You can contribute to an online document management system, either: i. As a client of the online document management system service provider (typically clients or head contractors), in which case you will enter into a contract and a fee is likely to be payable; or ii. As a sub consultant of a client of the online document management system service provider, which means that no contract exists directly between you and the service provider except that implied by acceptance of the provider’s terms of service when you log-on to the system.

As a general guide the ACEA recommends that you do not use online document management systems as a substitute for your own management system for retention of documents and records. You should always retain your own copies. There are a growing number of online document management systems being used to handle project information. Some have been developed by independent service providers and others by client organisations.

Before agreeing to participate in an online document management system, you should investigate the terms and conditions under which the system operates. The Practice Note contains some key questions that it is advisable to ask before you start. A clear benefit of an online document management system is that it holds a large amount of information about a project. It is important to remember however that whenever you use an online document management system you are entrusting your work to a third party and this carries certain risks. ACEA recommends that you carefully consider these before you begin to use an online data management system to satisfy yourself that the risks have been appropriately managed or eliminated. The Practice Note explores some of the main risks and how you might protect yourself. ACEA members can obtain a copy from the ‘members only’ section of the website, see: Publications/Practice Notes/General and Financial/6.12 Guidelines for the Use of Online Document Management Systems. Nicola Grayson

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AUTUMN 09 National Outlook

PRACTICE & PROCUREMENT

SCOPE FOR IMPROVEMENT IN INFRASTRUCTURE/CONSTRUCTION PROJECTS IN AUSTRALIA INFRASTRUCTURE AND CONSTRUCTION PROJECTS AROUND THE COUNTRY ARE A VITAL COMPONENT OF AUSTRALIA’S PRODUCTIVE CAPACITY AND EFFICIENCY. TO DELIVER PROJECTS WITH POSITIVE OUTCOMES FOR ALL STAKEHOLDERS, PARTICULARLY IN THESE TOUGHER ECONOMIC TIMES, THE AUSTRALIAN INFRASTRUCTURE AND CONSTRUCTION INDUSTRY MUST BE OPERATING AT ITS PEAK. IT MUST AVOID INEFFICIENCY CAUSED BY SCOPING PROBLEMS, PARTICULARLY WHEN THERE ARE ALREADY LIMITED RESOURCES (BOTH MONEY AND SKILLED PEOPLE) AND WHERE THE ADVERSE IMPACT OF INADEQUATE SCOPING IS SIGNIFICANT. Blake Dawson, supported by the Australian Constructors Association and Infrastructure Partnerships Australia, has recently published a study to examine current problems with scoping in Australian infrastructure and construction projects, to determine why such problems occur and to address the challenges in implementing changes to improve industry scoping practices (Scope for Improvement 2008: A report on scoping practices in Australian construction and infrastructure projects). The 2008 findings show that there is a high prevalence of deficient scoping in those projects.

of a project. For example, a blowout of $200 million or more was experienced in a quarter of the mega projects surveyed above $1 billion. Such a blowout could, for example, be the equivalent of building between 10 and 20 new schools or upgrading a regional hospital. There was also a high frequency of disputes and delays to projects which were attributed directly to poor scoping, with almost half of the respondents who reported a delay said it lasted for at least four months. The unifying aspect of each of these effects is inefficiency in the delivery of projects in Australia.

The findings come at a critical time in Australia as the Federal, State and Local Governments, as well as private sector organisations, look to spend large amounts of money on the development of strategically important infrastructure and construction projects around the country.

There are a range of reasons for poor scoping identified in the Report. The principal reasons include: Inexperienced personnel - a significant lack of experienced and trained personnel who can prepare scoping documents was cited as one of the main drivers of difficulties with projects. 84% of respondents blamed Australia's skills shortage for difficulties in finding resources and expertise to properly develop project scoping. Insufficient time – almost 40% of respondents said there was insufficient time to prepare scoping documents properly before going to the market. Principals unclear on project objectives – a third of respondents said inadequate definition of required outcomes for projects was a key driver of inadequate scoping, leading to changes in scope after contracts were signed. The Report highlights just how important it is for principals to correctly identify and articulate objectives at the outset of a project to prevent the fallout caused by inadequate scoping. Incomplete scoping documents – more than 40% of those surveyed identified incompleteness of scoping documents, 30% lack of coordination between those documents and 21% identified errors in scoping documents. Lack of consultation – the Report highlights the lack of consultation with end users at the outset in developing scope documents and before going to market. Almost 90% of respondents said projects would be adversely affected if end users were not properly consulted. Where end users were not engaged, respondents considered their projects to be properly scoped in only 20% of the time.

The research surveyed over $60 billion worth of public and private projects across a range of sectors, including road, rail, ports, hospitals, schools, energy, mining, residential and commercial. The average project value surveyed was approximately $360 million. The respondents to the survey were mainly from senior management level, with an even mix from government and private sectors. A key finding from the Report is that there is a high prevalence of deficient scoping. With 52% of respondents said that the project they were involved in was not adequately scoped by the time the project was submitted to the market. These issues were reflected industry wide; with the majority of respondents claiming the problem was getting worse. It is a problem identified right across the spectrum of project value. As well as an increase in deficient scoping, the majority of scoping inadequacies (64%) were discovered far too late in the life a project rather than being identified at the more manageable phase before contracts are signed. There are significant consequences for inadequate scoping which are identified in the Report – relating to cost overruns, delayed completion and disputes. As to cost, more than 60% of respondents said that inadequate scope documents resulted in a cost overrun, with more than half of those overruns costing more than 10% of the value of the project and a third more than 20%. These cost overruns can have a substantial impact on the success 14

National Outlook AUTUMN 09

The Report identifies a range of solutions, which, if implemented, will assist in the successful delivery of projects. Fundamentally, industry recognises the need to think and act differently when it comes to scoping. More focus has to be placed on getting scoping right from the start of each project. Some of the steps for successful scoping identified in the Report include: Bring together all relevant stakeholders and end users for the project early on to identify the project requirements. Set realistic timeframes and budgets for the development of the project scoping. Where appropriate, consider the delivery of the project in context with other related and upcoming projects and existing infrastructure and then coordinate and interface accordingly – particular with Government projects. Establish a core team, utilising skilled industry personnel in the development of the scope documents. Empower a project leader with clear authority and accountability. It is hoped that those within the industry responsible for the delivery of infrastructure and construction projects will embrace the recommendations set out in the Report. Ultimately, the aim of the 2008 Report is to inform the industry and to assist in its drive to be even more successful in the delivery of projects. For a copy of the full 2008 Report please go to www.blakedawson.com Blake Dawson

Kevin Arkwright Partner

Chris Davidson Partner

Bill Smith Partner

TULLY ALLIANCE SELECTS BRIFEN BARRIERS THE TULLY BYPASS OPENED IN DECEMBER 2008.THIS WORK ON THE BRUCE HIGHWAY DESIGNED TO REDUCE DAMAGE CAUSED BY SEASONAL FLOODING IN MOST YEARS INVOLVED THE CONSTRUCTION OF SOME 26 SUBSTANTIAL CULVERTS TO CONTROL THE WATERS OF THE OVERFLOWING TULLY RIVER.

Brifen wire rope safety fence was the barrier selected to contain and redirect errant vehicles across the culverts. The specification required a high performance, NCHRP350 TL3 system wire rope fence that could cope with the combination of being located 1.2m from the edge of culvert and being located along the hinge point of a 1V:4H batter. Further the time for verification of the product performance was very short, being in the design phase of the project. The time for verification of the product performance was very short. Brifen Australia limited their design to computer simulations of the 2000kg Pick-up vehicle required in NCHRP350 TL3 analysis o the standard Brifen TL3 fence built at 2 metre post spacing. A detailed report was submitted to the Tully Alliance detailing the performance of the fence against the exacting specification requirements. From that point Brifen Australia worked closely with the Tully Alliance engineers both in the design and the construction phase, visiting the site to check the installation process. The Brifen wire rope has been tested in a verge situation along a vertical drop at a fence length of 192 metres. It is the only wire rope fence to have been tested in this manner. This verge test combined with the myriad of other tests carried out by Brifen in the past 24 years provides excellent data for computer simulations and greatly increases the reliability of the estimates of performance in the tight situations encountered on project s like the Tully bypass. For further information contact Paul Hansen at Brifen Australia (02) 9631-8833 or email inquiries sales@brifen.com.au

CONTRACTS AND LIABILITY Nicola Grayson heads the policy team at the Association of Consulting Engineers Australia’s National office in Sydney. Her portfolios include Procurement & Practice and Contracts & Liabilities. Nicola can be contacted at nicola@acea.com.au

UNIFORM PROPORTIONATE LIABILITY PROVISIONS: THE STANDING COMMITTEE OF ATTORNEYS GENERAL CONSULT ON THE ISSUE OF WHETHER OR NOT TO ALLOW CONTRACTING OUT THE STANDING COMMITTEE OF ATTORNEYS GENERAL AGREED TO INTRODUCE A NATIONALLY CONSISTENT SYSTEM OF PROPORTIONATE LIABILITY FOR DAMAGES FOR ECONOMIC LOSS OR PROPERTY DAMAGE AND PROPORTIONATE LIABILITY (PL) LEGISLATION WAS INTRODUCED ACROSS ALL STATES AND TERRITORIES BY 2005. The legislation removes the onerous practice of joint and several liability, which saw defendants in a claim for economic loss or property damage often unfairly penalised with full liability for a claim even where others had contributed to the loss. Under the PL legislation the liability of a defendant in an action is limited to an amount reflecting the proportion of the damage or loss claimed, that the court considers just, having regard to the extent of the defendant’s responsibility for the damage or loss. Overall this is a much fairer system for defendants in an action. Consultants were no stranger to the onerous operation of joint and several liability, not only because of the risk of carrying full liability for claims of economic loss and property damage, but also because of the negative effect that this had on the cost of professional indemnity insurance. This issue was recognised by the Insurance Ministers at the time the model legislation was proposed, “The operation of insurance and the law of joint and several liability has given rise to professionals often being singled out as the sole target for legal action in proceedings for property damage and purely financial loss even when the professional is only one of the parties involved and may have only contributed in a minor way to the loss. These factors have led to an exponential increase in professional indemnity premiums which are not sustainable.” Joint Communiqué issued 15 November 2002 from the Ministerial meeting on Public Liability insurance. However when the legislation passed through the parliaments of some jurisdictions, namely New South Wales, Western Australia and Tasmania, a provision was added to the model legislation allowing contractual parties to ‘contract out’ of the legislation, meaning that the parties would once again be subject to joint and several liability under the contract. This has been a point of contention since the introduction of the legislation, with the professional service industries, including the ACEA, campaigning for the legislation in these jurisdictions to be amended to expressly prohibit parties from contracting out in order 16

National Outlook AUTUMN 09

to maintain this important statutory right. This would follow the legislation enacted in Queensland, which is the only jurisdiction to expressly prohibit contracting out. The issue remained unaddressed until the Standing Committee of Attorneys General sought the advice of Mr Tony Horan and Professor Davis in 2007 on the areas where the legislation differs across jurisdictions and how these inconsistencies might be addressed. On the issue of contracting out, both reports (Proportionate Liability: Towards National Consistency, Tony Horan, DLA Phillips Fox; and Proportionate Liability: Proposals to achieve national uniformity, Emeritus Professor JLR Davis) found that contracting parties should be prohibited from contracting out. The Standing Committee of Attorneys General have now produced a consultation paper (November 2008) putting forward their proposals for achieving uniform PL legislation. Although the paper makes a number of proposed recommendations, it does not provide an approach on contracting out. Instead two options are proposed: 1. The legislation expressly permit contracting out; or 2. The legislation expressly prohibit contracting out. The ACEA has put forward its submission to the Attorneys General in support of Option 2. However not all commentators agree. The law firm Clayton Utz, for example, has made the following comments regarding the reports by Mr Tony Horan and Professor Davis: “Although not raised in either report, there are sound arguments for repealing the proportionate liability legislation altogether. The original aim of the legislation was to ensure that adequate or affordable liability insurance continues to be available. Despite the temporary insurance crisis which followed the collapse of HIH, however, no other common law jurisdiction (with the exception of some US states) has a proportionate liability scheme of this type and yet adequate and affordable insurance is available in those countries. It appears that the introduction of proportionate liability was an overreaction to

the 2000-01 insurance crisis. To the extent that there is a continuing concern that professional indemnity insurance will not be generally available, other mechanisms such as limiting the liability of professionals under the professional standards legislation would be more appropriate for achieving these objectives. Other arguments supporting repeal of the legislation include: it is unfair for an innocent plaintiff to bear the risk of insolvent wrongdoers when there are other concurrent wrongdoers who are responsible for the loss or damage; it increases the complexity and cost of proceedings as it increases the number of defendants; the apportionment of liability to absent defendants offends the principles of natural justice and the rule that a court’s decision should only relate to the interests of the parties before it; and it prevents parties of equal bargaining power choosing to commercially allocate their risks.” Source: Clayton Utz Project Insights, 08 December 2008, authors, Owen Hayford, Andrew Stephenson and Vanessa McBride.

The ACEA has written to the Federal Minister for the Service Economy, Dr Craig Emerson, asking that he support this position in particular because the current global financial climate has had a significant impact on the insurance industry and it is anticipated that the professional indemnity insurance market will begin to harden. The last hardening of the professional indemnity insurance market saw premium increases of up to 1000% for some consulting engineering companies. It is critical that the tort reforms, most particularly the PL legislation, are not rolled back. The ACEA strongly disagrees with the view that the tort reforms have been an overreaction. The consulting engineering industry is in fact a very good case study demonstrating the need for such reforms. It is anticipated that the outcomes of the consultation will be referred to the Standing Committee of Attorneys General at their next meeting in March 2009. Nicola Grayson

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CONTRACTS AND LIABILITY

PUBLIC SECTOR CONTRACTING THE ACEA HAS HAD GOOD ENGAGEMENT WITH MAJOR PUBLIC SECTOR CLIENTS REGARDING THEIR CONTRACTUAL TERMS AND CONDITIONS AND PROCUREMENT PRACTICES THROUGHOUT 2008. THE ACEA LIABILITY AND CONTRACTS ROUNDTABLE (CHAIRED BY STEPHEN UHR, HYDER CONSULTING); THE PROCUREMENT AND PRACTICE ROUNDTABLE (CHAIRED BY LES MILLIST, GHD) AND THE ACEA DIVISIONS WILL BE SEEKING TO CONTINUE THROUGHOUT 2009. HERE IS A SNAPSHOT OF DISCUSSIONS TO DATE: WHOLE OF GOVERNMENT

PROGRESS REPORT

Federal Government

Industry roundtable was convened and follow up meetings were held with the ACEA and the Department of Innovation, Industry, Science and Research to explore introduction of limitation of liability guidelines and standardised terms and conditions. The Commonwealth Procurement Guidelines have subsequently been amended to include reference for the first time to consider limits of liability.

Centre for Excellence and Innovation in Infrastructure Delivery (CEIID) (WA)

ACEA presented to CEIID and follow up meetings were held. CEIID is looking to improve collaboration, forward planning, risk allocation, information sharing along with contractual terms and conditions and procurement practices and has sought comment from the ACEA.

Construction Consultative Committee (CCC) - formally the Construction Agency Coordination Committee (NSW)

Presentations were made by the ACEA and an agreement was reached to develop a NSW Professional Services Agreement by NSW Commerce through a working party of NSW agencies. CCC will consult with ACEA during the drafting.

PUBLIC SECTOR DEPARTMENT

PROGRESS REPORT

Defence (Federal)

A change was made to the Indemnity Clause following ACEA representations. Agreement was also made to send ACEA their legal interpretation of the clauses raised in the ACEA issues paper. There was agreement to issue a bulletin to ACEA outlining changes to procurement.

RTA (NSW)

The RTA is reviewing their DCM and D&C contracts model. ACEA agreed to provide more information on insurance issues, risk and collaboration, and submitted papers regarding these issues. The RTA have indicated their interest in an ongoing dialogue.

NT Government

NT is reviewing its Professional Services Agreement, ACEA has submitted an issues paper.

Transport, Energy and Infrastructure (SA)

Meeting held with Chief Executive. Agreement to send ACEA details of DTEI project insurance cover.

Local Government (SA)

Meeting held with Chief Executive. Agreement to send ACEA details of DTEI project insurance cover.

Main Road (QLD)

ACEA is submitting comments to Main Roads on their General Conditions of Contract; Main Roads will put together a working group to consider these. Main Roads is also looking into Principal insurance for PI.

Dep’t of Transport (VIC)

Agreement that contracting out of Proportionate Liability is not a favoured position. A change has been made to the due care, skill and diligence requirement in the standard professional services template so that it will be expressed as a contractor’s obligation rather than a warranty.

VicRoads

Meeting held with Chief Operating Officer and Legal Counsel. Agreement to consider ACEA issues paper.

If you would like to find out more about the ACEA Liability and Contracts Roundtable, the ACEA Procurement and Practice Roundtable or how to get involved with your local ACEA Division, please contact Nicola Grayson or your local ACEA Executive Officer. You can also see the ACEA website for more details.

If you are looking for assistance with contractual terms and conditions of engagement here are three key services available to you through your ACEA membership: 1. ACEA Practice Note 4.05: Guide to Contract Terms A guidance note identifying some of the unfavourable terms that can appear in professional service/consultancy agreements and how these can be managed. 18

National Outlook AUTUMN 09

Available from the ACEA website, see: Members Only / Publications / Practice Notes /l Legal advice / 4.05 Guide to Contract Terms; 2. ACEA Masterclass Certificate in Contracts for Consultants An intensive training seminar for nonlawyers who are regularly confronted with client contracts. The course provides attendees with a fundamental understanding of all issues relating to contracts and arms delegates with practical skills to analyse contractual terms, negotiate better terms, and end a contract successfully. For details see the ACEA website, see: Education/events/ACEA Education Courses/Masterclass Certificate in Contracts for Consultants.

Contact Built Environment Legal The Association of Consulting Engineers Australia (ACEA) has established a wholly owned subsidiary Built Environment Legal (BEL). BEL will provide specialised legal advisory services to the Built Environment industry with special benefits to ACEA member firms that use its services. The Solicitor Director is Ms Shaye Chapman, you can contact Shaye on 02 8252 6718 or email shaye@belegal.com.au Nicola Grayson

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KSB Pumps for Award Winning Water Project KSB AUSTRALIA IS PROUD TO BE ASSOCIATED WITH THE BUNDAMBA ADVANCED WATER TREATMENT PLANT (BAWTP) IN QLD WHICH RECENTLY RECEIVED THE GRAND HONOUR AWARD FOR DESIGN PROJECT, PROJECT INNOVATION AT THE INTERNATIONAL WATER ASSOCIATION’S 2008 WATER CONGRESS IN VIENNA, AUSTRIA. THE AWARD RECOGNIZES THE USE OF TECHNOLOGY WITHIN THE PROJECT, WHICH HAS BEEN DESCRIBED AS “A TECHNICAL MASTERPIECE.” The world class Bundamba Advanced Water Treatment Plant (BAWTP) was delivered in a record time by Bundamba Alliance team, which consist of Queensland Department of Infrastructure, Thiess Pty Ltd (one of major construction company in Australia) and Black & Veatch (one of US major engineering and Construction company). Utilising the reverse osmosis process, the Bundamba Advanced Water Treatment Plant (BAWTP) is one of three advanced water treatment plants forming the backbone of the project, and is designed to further treat secondary treated wastewater to a high standard to produce PRW. This PRW is then pumped to the Swanbank and Tarong coal-fired power stations for use in the cooling process and thus reducing demand on the region’s drinking water supply. Working closely with Bundamba Alliance member engineering staff KSB Australia were successful in supplying the key process pump units for each project stage, meeting both customer delivery and quality requirements. A total number of 51 pump units were supplied with a selection ranging from ever popular Omega, Multitec, Mega, Megachem and Etanorm pumps. KSB Australia.

CONTRACTS AND LIABILITY

BREACHING COPYRIGHT AND PERSONAL LIABILITY JASON SPRAGUE, SPECIAL COUNSEL, CORPORATE & COMMERCIAL AND IP WITH SPARKE HELMORE LAWYERS EXPLAINS, BREACHING COPYRIGHT AND PERSONAL LIABILITY - HOW YOUR BEHAVIOUR MATTERS. Employees may be personally liable for infringing copyright in building plans. Designers, architects, builders, engineers and anyone else involved in creating or developing plans cannot assume that because elements appear to be functional, commonplace or have been known in an industry for several years, that copyright does not exist in those elements or their combination. It is the quality of the copied item not the quantity that is copied that is crucial in determining infringement. In both cases below while only part of the total building design was copied it was a ‘substantial part’. Development processes that do not appear to consider or have regard for copyright issues may lead to an inference of copying and increased damages awards. Adequate documenting and record keeping of design development may assist in defending against copyright infringement claims. Recent copyright cases involving housing plans highlight how copyright can exist in seemingly ordinary and standard design elements and how personal liability can be imposed. Commonality of design in the home volume building market is almost an accepted industry hazard. As home designs are principally dictated by practical requirements such as meeting market trends and fitting within physical constraints of lot size there would seem to be a limited number of ways a house can be designed. The result is one of significant similarity of design between competitors in that market. Given these practical limits, it would seem unlikely that enforceable copyright would exist in these designs. However, two Federal Court cases Metricon Homes Pty Limited v Barrett Property Group Pty Limited [2008] FCAFC46 and Barrett Property Group Pty Limited v Carlisle Homes Pty Limited [2008] FCA 375 (Barrett Cases), have shown otherwise. In the Barrett Cases (brought by Barrett Property Group Pty Limited (BPG)) it was alleged the defendants had copied an outdoor dining element known as the ‘alfresco quadrant’ from BPG’s house designs. While outdoor dining and various elements of 20

National Outlook AUTUMN 09

rooflines and positioning were not necessarily unique or original, BPG was able to provide sufficient irrefutable evidence to satisfy the Court that the combination of seemingly common elements for the ‘alfresco quadrant’ was original and protected by copyright. BPG was successful as it was able to show evidence documenting a clear history of how they had developed the ‘alfresco quadrant’ including having expended a substantial amount of time and money in the process. Despite the Court acknowledging that similarities were bound to occur because of practical considerations (such as lot size and market demand), the Court held in both cases: the ‘alfresco design’ to be a ‘substantial part’ of the BPG plans protected by copyright; there was sufficient objective similarity between the works of the rival firms and the Barrett ‘alfresco quadrant’ to indicate copying; and neither defendant was able to provide any believable reasons or evidence for the similarity in design, such as independent creation, for them to reach a decision other than copying having occurred. In both Barrett Cases the defendants tried but were unsuccessful in arguing: the ‘alfresco quadrant’ was not original and therefore had no copyright protection; and if there was copyright in the ‘alfresco quadrant’, they had independently created, their plans and the similarities were coincidental. The Metricon Decision The Court rejected Metricon’s argument it independently created its ‘quadrant’ design by transforming and modifying existing Metricon designs on the basis that Metricon had: failed to demonstrate a process by which it had independently developed its ‘quadrant’ design; visited BPG’s display homes and had access to the floor plans; taken photos of the display homes; and discussed BPG’s designs at planning meetings. Personal Liability The Court also commented on Metricon’s design processes stating that it had an endemic ‘culture of copying’. The Court found Metricon’s managing director and product development manager were or should have reasonably been aware the infringement was occurring and that they did nothing to stop the infringing conduct.

This resulted in both employees being held personally liable for having authorised the infringement. Metricon appealed the single Judge Federal Court decision to the Full Court of the Federal Court but was ultimately unsuccessful. The Carlisle Decision Carlisle initially argued that the ‘alfresco quadrant’ was commonplace, devoid of originality and was incapable of copyright protection. Upon failing to provide any concrete examples that pre-dated the Barrett ‘quadrant’, Carlisle’s amended defence then argued that they had independently created their ‘quadrant’ design. In support of this argument Carlisle produced three sketches to show the evolution of their design. Outcomes The Court’s was not persuaded by Carlisle’s arguments that it’s ‘quadrant design’ had progressively evolved as: the mere existence of the Carlisle sketches did not rule out that they had been produced by copying the Barrett design; there was inconsistent and in the Court’s view, deliberately misleading evidence given by Carlisle employees in regard to the ‘inspiration’ for the design; Carlisle representatives had visited the Barrett display homes; and the success of the ‘alfresco quadrant’ and desire for similar designs in its own portfolio was a driving factor which had been discussed at Carlisle design meetings. Intent and Public Domain The Carlisle decision is also worth noting in relation to intent to infringe and copying items which are in the ‘public domain’. In this case the Court acknowledged there was probably no direct intent to infringe Barrett’s copyright and the copying may have been unconscious but it still found infringing copying had occurred, stating: “Mr Doulgeridis [a Carlisle employee] did copy the alfresco quadrant from Barrett’s Seattle plan, which had been on the market for several years. Probably he did so without much thought and assumed, because the plan had been around for a while, that it was in the public domain...”

pi INSURANCE

HOW SUSTAINABLE IS YOUR INSURANCE? Conclusion Reliance on ‘public domain’ or ‘common stock’ defences can be difficult to argue when there is a combination of common elements to create a new or original arrangement of those common elements. Copyright can exist even where something has been in the public domain for some time. Copyright protection now lasts for up to 70 years. Intent is not a necessary element to establish infringement but will be important when assessing damages. Conduct can be persuasive for a Court in determining the existence of personal liability and the amount of damages that should be awarded against an infringer. Proper maintenance of design archives and establishing policies which encourage original creation and do not suggest or encourage copying will assist in reducing infringement claims or the amount of damages which may be awarded if a breach of copyright is proven. Firms and professionals engaged in designing and planning should: review their design and document retention processes and seek professional advice on the adequacy of those processes and current practices; and look at how they can better protect their intellectual property investments and reduce the possibility or impact of infringement actions.

Contact Jason on: Telephone: 02 9373 3555 Email: jason.sprague@sparke.com.au

IN THE CURRENT FINANCIAL CRISIS, IT IS VITALLY IMPORTANT TO MAKE SURE THAT YOUR INSURANCE COVERAGE IS SECURE. AT PLANNED PROFESSIONAL RISK SERVICES, WE HAVE PLACED PROFESSIONAL INDEMNITY INSURANCE AND PROVIDED RISK MANAGEMENT SERVICES TO CONSTRUCTION PROFESSIONALS FOR OVER 25 YEARS. WE HAVE LIVED THROUGH TWO RECESSIONS, THE COLLAPSE OF HIH INSURANCE AND THE CURRENT FINANCIAL CRISIS. EXPERIENCE HAS DEMONSTRATED TO US THAT ‘SHORTCUTS’, WHICH ARE SOMETIMES TAKEN BY PROFESSIONAL SERVICES COMPANIES IN TOUGHER FINANCIAL TIMES, CAN HAVE DEVASTATING CONSEQUENCES. Outlined below are some of the common pitfalls of adopting a purely ‘cost saving’ strategy in relation to insurance and our suggestions for consulting engineers seeking to obtain and maintain insurance which will be available when you need it most. Do not be enticed to accept the cheapest insurance policy without proper consideration of the insurer who is underwriting the policy and the extent of cover being offered. Before entering into any policy of insurance, it is important to: Check the financial security of your insurer; Check the commitment of the insurer to the Australian insurance market. After the collapse of HIH insurance, a large number of insurance companies left the Australian professional indemnity insurance market. In the last few years some of those insurers have returned however we anticipate that a number of those companies will again leave the market when the full effects of the current crisis are truly understood; Investigate the claims handling philosophy of your insurer; Check policy wordings carefully. Some insurers are still offering professional indemnity insurance policies with personal injury exclusions. Personal injuries claims represent a significant proportion of claims brought against construction professionals; Enquire into the additional services that are offered by some brokers; such as contract reviews, in-house risk management seminars and access to free telephone advice offered by lawyers. All of these types of ‘add on’ services add value to your policy; and Your broker should be providing you with advice on all of these issues.

Do not be tempted to let your insurance policy lapse, even for one day, in an effort to save costs. Professional indemnity insurance is ‘claims made and notified’ insurance. In short, this means that you will only be covered if you have a current policy in place when a claim is made against you or you become aware of circumstances that may lead to a claim. Some insurers offer the additional benefit of ‘continuous cover’, which means that if you have renewed your insurance with that insurer, the insurer will (generally speaking) accept a late claim; that is a claim that should have been notified within a previous policy period that you were on risk with that insurer. If you let your policy lapse and have a gap in cover, you will lose the benefit of ‘continuous cover’ even if you remain with your current insurer. Continue to observe good risk management practices. Historically, construction related litigation increases significantly when the economy is under pressure. The products of good risk management practices, such as maintaining comprehensive project records, often prove to be crucial evidence in defending a claim. The above constitutes general advice only. It is not tailored to your individual needs or those of your business and should therefore not be relied upon. We suggest that you obtain advice on these issues which is specific to your needs and objectives. Simon Gray is the State Manager (NSW/ ACT) of Planned Professional Risk Services and Natalie Sullivan is the Risk Manager (NSW/ACT/WA). Planned are specialist professional indemnity insurance brokers and an ACEA PI Pathway Partner. For further information, please contact Simon on 02 9957 5700 or simong@ professionalriskservices.com.au Simon Gray

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sustainability

DELIVERING SUSTAINABLE INFRASTRUCTURE – THE ROLE OF SUSTAINABILITY ASSESSMENT ‘SUSTAINABILITY ASSESSMENT’ IS A TERM THAT WOULD BE FAMILIAR TO A NUMBER OF ACEA MEMBER FIRMS AND THEIR CLIENTS. ACROSS THE GLOBE, VARIOUS SUSTAINABILITY ASSESSMENT APPROACHES ARE EMERGING IN AN ATTEMPT TO DELIVER MORE SUSTAINABLE PROJECTS. JANE SCANLON TALKS TO LEADING EXPERTS IN THE FIELD OF SUSTAINABILITY ASSESSMENT TO GAIN INSIGHT INTO THIS EMERGING FIELD. Given increasing action to address climate change and the current infrastructure boom in Australia, there has never been a greater push for proponents to deliver sustainable infrastructure projects. Yet, to many involved in project delivery, achieving or even defining sustainability remains a daunting task. To address these issues, various sustainability assessment approaches are being developed and applied by many governments and organisations, including some ACEA member firms. Approaches to sustainability assessment for infrastructure can be separated into three categories: 1. Planning – determining the most sustainable option to achieve a desired outcome 2. Project approval – deciding on whether to approve a project based on sustainability considerations 3. Performance rating tools – measuring sustainability performance throughout the various project phases including design, construction and operation. Examples of approaches within the first two categories include the South East England Development Agency (SEEDA) Sustainability Checklist and the Hong Kong Special Administrative Region Computer Aided Sustainability Evaluation Tool (CASET). Rating tools include the UK Civil Engineering Environmental Quality Assessment and Award Scheme (CEEQUAL) and the forthcoming Australian Green Infrastructure Council (AGIC)’s Infrastructure Sustainability Rating Tool. Within the various sustainability assessment approaches, there are a number of strategies for defining sustainability impacts. Some examine impacts within the confines of the three sustainability ‘pillars’ – social, economic and environmental. Other approaches consider the complex inter-linkages between these three pillars while others refrain from the three pillar approach and prefer to base an assessment on a set of project specific sustainability criteria, objectives or principles.

National Outlook AUTUMN 09

But regardless of the approach taken, sustainability assessment of any project needs to answer one fundamental question – ‘does this proposal make a contribution to sustainability?’ In March 2008, Northgate Mineral Corporation’s Kemess North Project proposal to expand an existing mine in British Columbia, Canada, was rejected by provincial and federal authorities based on a sustainability assessment. Professor Robert Gibson from the University of Waterloo in Canada observed that the federal-provincial environmental assessment panel took the sustainability requirement seriously. He said the panel asked whether the project would leave a positive overall legacy, not just whether the immediate effects would be minimally damaging. Dr Jenny Pope, Director of Integral Sustainability, was actively involved in preparing the sustainability assessment of the proposed South West Yarragadee Water Supply Development in Western Australia. According to Dr Pope, this project demonstrated that ‘sustainability assessment can shift the whole way of thinking of a project team’. She further adds that ‘the major benefit of good, proactive sustainability assessment is that it really can deliver a better plan or project proposal than might have otherwise been achieved’. Despite some successes, there are a number of barriers to achieving meaningful sustainability assessment. According to Professor Gibson, a significant hurdle is challenging the conventional thinking that is entrenched in most current institutional structures, since progress towards sustainability requires a critical approach to much of what we are doing now. Other barriers include issues with defining a sustainability-enhancing project, seeking stakeholder consensus on sustainability objectives, and developing appropriate measuring and modelling systems.

Further, finding the right balance of incentives for the implementation of sustainability assessment is difficult. The development of a mandatory sustainability assessment instrument would ensure adoption by both decision-makers and proponents. However, according to Charmian Barton, Partner at DLA Fox Phillips in Sydney, imposing a mandatory requirement for sustainability assessment of projects (in NSW) would require Parliament to choose among competing interest groups, particularly in relation to the content and form of that assessment. Charmian says a legislated sustainability assessment approach needs to be flexible enough to accommodate individual project and decision-making needs. Although sustainability performance rating tools are valuable in tracking the implementation of sustainability objectives, as well as providing voluntary incentives for proponents to consider sustainability throughout the project lifecycle, some commentators argue that the benefits of using these tools in a stand alone capacity are limited, as they are generally applied after major strategic decisions have already been made. According to Dr Pope, it is always better to commence the sustainability assessment at the earliest possible point in the decisionmaking process. Sustainability assessment is not just about applying a tool to measure project sustainability reactively, but about developing a framework to effectively integrate sustainability principles into early planning and decision-making processes. There is a demonstrated need to focus on developing a consolidated framework that integrates all three categories of sustainability assessment. ACEA member firms should become active in this area of research and participate in knowledge sharing within the international community to help achieve sustainable infrastructure development. Jane Scanlon Jane Scanlon is a sustainability consultant for Connell Wagner in Sydney, and a PhD candidate at Macquarie University’s Centre for Environmental Law. She can be reached at scanlonj@conwag.com

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sustainability Caroline Ostrowski is a Policy Officer for the Association of Consulting Engineers Australia. Caroline represents the needs and interests of ACEA member firms across the Skills and Sustainability business portfolios. Caroline can be reached at caroline@acea.com.au

SO WHAT IS SUSTAINABILITY ANYWAY? IN CONSIDERING SUSTAINABILITY AND ALL ITS ATTRIBUTES, CONFUSION IT SEEMS STILL EXISTS AROUND WHAT SUSTAINABILITY IS ACTUALLY COMPRISED OF AND PARTICULARLY ITS DEFINITION. DEFINING SOMETHING SO COMPLEX THOUGH RAISES THE QUESTION - MUST SUSTAINABILITY HAVE ONE UNIVERSAL DEFINITION OR CAN IT MEAN DIFFERENT THINGS TO DIFFERENT PEOPLE IN DIFFERENT SITUATIONS? AN INVESTIGATION ON SOME COMMON (AND NOT SO COMMON) THOUGHTS AND THEORIES ON THE SUBJECT MAY REVEAL THE ANSWER. When attempting to determine a scope for the sometimes illusive term, the common domestic view tends to lead to the idea that sustainability is comprised of the actions and the ideas that can address the changes occurring with relation to the climate. That is, the atmospheric changes as a result of an increased influx of carbon which has been attributed to fast changing weather patterns and an increased rate of natural disasters like floods and hurricanes. This view, held by varying sectors of the ‘general’ population can be attributed to information which is commonly reported in the media, like noticeable weather impacts and the Governments solution to these – the Carbon Pollution Reduction Scheme. It is apparent though, when innovation, longevity and efficiency are thrown into the debate - the all encompassing term that is sustainability presents itself as so much more. There are a range of definitions or ‘schools of thought’ which have been coined and developed over decades. A number of these are preoccupied with longevity; building the societal blocks to last for many years to come. One of the central points of this definition is constantly having in the forefront of ones mind that it is critically important to ensure that future generation’s needs are catered for, and taken into account when planning, constructing and designing almost anything. Interestingly there is also evidence of this theme being applied across a broader range of sectors than just the built environment. For example some education providers have adopted a long term ‘sustainable’ vision of providing students with the competencies for lifelong learning and the skills to then pass these on to future generations and so on. Others have taken the view that the triple bottom line principle is the best approach to achieving a sustainable outcome. The triple bottom line has been described

recently as “a unique approach to community development that integrates environmental stewardship, sustainable development and social justice.”* Or more simply an integration of the environmental, the societal and the economic considerations, with a strong emphasis on the ideas that these principles must remain unified throughout an exercise. Furthermore the triple bottom line considers that when and if these issues are viewed as separate or unrelated parts, solutions tend to be short term, and ultimately unsustainable. Sustainability is viewed by some individual businesses as a basis for a reporting mechanism. These companies use the components of sustainability to create a reporting package for their stakeholders as part of, or central to, their corporate sustainability strategies. The ASX has taken this idea and turned sustainability into a tool which indexes, balances and checks companies against each other in a public forum. Many companies view this version of sustainability as being the most relevant in contemporary business and society. This is evidenced by the high costs involved in maintaining such reporting and subsequently being part of such a scheme. The costs are balanced with the view that there is a recognised value of reporting sustainability objectives and outcomes which is tied to corporate responsibility and ultimately goes to the heart of what it is that these businesses view and determine as ‘sustainability’. The principles of longevity and improvement to what might otherwise have remained mediocre or unused tend to be most relevant to the consulting engineering industry, as is the triple bottom line approach. The triple bottom line is a long standing, and well accepted practice which is imbedded into the thinking of many of Australia’s consulting engineering firms’ minds/ operational strategies. However it may be a little outdated, in that it is constrained by trying to confine all that sustainability encompasses into three compartments.

It seems apparent that one reason sustainability can be a somewhat hard to define principle is that it concerns itself with such a multitude of different ideas and theories, and can be applicable to all industries and all persons at all times. It can almost be presented and accepted as a way of life or an era. Sustainability and all its connotations seems to push people to consider a myriad of possibilities, some not always apparent in a timely fashion, but nonetheless the themes of this wondrous word seem to find their way into many parts of contemporary every day life. The term, which is at times over used or not used in the correct context is beginning to infiltrate the broader nation’s thinking and can be seen to be steering Australia to a place which allows for more collaboration in the sustainable space. If sustainability is to be understood across a wider range of community sectors, a shift in mindset resulting in a change of well ingrained behaviours will need to take place. The positive news is that in all the literature available on sustainability, there are no counter-arguments to be found, that is sustainability as a broad idea is globally accepted as a contributor to the common good. The concepts of environmental responsibility, infrastructure longevity and societal improvements are popular, but many Australian citizens fail to connect these themes to their every day lives. It appears obvious that the consulting engineering industry, with its wealth of knowledge in the ever evolving area, can play a role in disseminating and communicating the message, not forcefully, rather encouragingly and with the principle of sharing information in mind. This sharing of information appears to already be occurring with some local and state governments, industry and other groups, the education sector all making attempts to be disseminators of the information, and doing so in such a way that is well tailored to the target audience. Caroline Ostrowski *http://www.conservationfund.org/node/617

National Outlook AUTUMN 09

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WILL THE CARBON POLLUTION REDUCTION SCHEME WORK WITHOUT ENERGY EFFICIENCY AND RENEWABLES BY ITS SIDE? THE DEBATE AS TO WHETHER OR NOT THE CARBON POLLUTION REDUCTION SCHEME (CPRS) WILL ACHIEVE ITS GOALS IS BECOMING EVER PREVALENT. IN THE LAST FEW MONTHS THERE HAVE BEEN INCREASED CALLS FOR A RETHINK BY THE OPPOSITION AND SOME BUSINESS GROUPS IN LIGHT OF THE CURRENT ECONOMIC SITUATION, CALLS FOR LESS ASSISTANCE FOR LARGE EMITTERS BY GREEN GROUPS, A GENERAL PUBLIC OPINION THAT WE NEED MORE AMBITIOUS SHORT TERM REDUCTION TARGETS AND SME’S FEELING A GREATER LEVEL OF UNCERTAINTY AS TO HOW THE SCHEME MAY AFFECT THEIR BOTTOM LINES. THE FEDERAL GOVERNMENT IS PERSEVERING WITH THE IMPLEMENTATION OF THE CPRS, AND WITH THE SCHEMES IMPLEMENTATION DATE LOOMING LESS THAN A YEAR AWAY - THE QUESTION REMAINS – HAVE WE GOT IT RIGHT? A report released by the Australian Conservation Foundation (ACF) has found that the Federal Government may give $3 billion worth of free carbon pollution permits to some of Australia’s largest companies as part of its carbon trading scheme to begin in 20101. This figure is perhaps far more generous than previously thought. However what will Australia’s largest emitters (some, Australia’s most lucrative and largest companies) do without assistance? Will they move offshore as some predict or adapt accordingly by expanding or changing sectors? Last year we saw Australia’s only Solar photovoltaic manufacturer (BP) move its operation out of Australia, their global CEO exclaiming that “We’ve looked at all options in our Sydney manufacturing site and the physical location, lack of expansion potential and lease agreements just don’t make it competitive.”2 There are claims that “BP Solar's move follows a growing exodus of renewable energy enterprises, including the closure of Danish wind giant Vesta's Portland factory last year and solar thermal power plant manufacturer Ausra's relocation from NSW to California.”3 The ‘renewable energy exodus’ has the very real potential to significantly affect Australia’s carbon pollution reduction targets. In response the Government have launched a new solar institute in an attempt to regenerate interest in the power source, this may not be enough, with research being the Solar Institutes primary output, there seems no conduit to turn any great Australian intellectual property into reality onshore. A recent Australian Academy of Technological Sciences and Engineering (ATSE) study has supported the view that a CPRS will not be the conduit for an increase in renewable energy concluding that “a Carbon Pollution Reduction Scheme trading scheme (CPRS) to reduce greenhouse gases (GHG), is a necessary, but not sufficient, condition for timely new technology deployment.”4 The ACEA have long considered and advocated that significant investment and action in energy efficiency could successfully

work alongside the CPRS to reduce Australia’s Carbon footprint. The ACEA also contend that any successful policy to reduce carbon emissions should be delivered as an incentive, as incentives have the capacity to drive behavioural change. Moving from a high carbon economy to one which will trade emissions in order to reduce them is precisely the type of change driven exercise that will require the use of incentives.

The report explains that Australia's building sector could cut the projected price of carbon trading permits by 14 per cent – and generate annual savings of $38 billion by 2050 – with energy efficiency measures that complement the federal government's proposed carbon pollution reduction scheme (CPRS). Most of this can be achieved by incetivising both households and building owners to invest in retro-fits, and offering tax incentives.

One example of incentivising change is using strategic policies like an accelerated depreciation scheme for green building retrofits. Accelerated depreciation rates (of double the depreciation rates normally applied to investment in plant fixtures and fittings) could be provided to investors in buildings or building improvements which meet specified environmental and energy efficiency standards.

It is more pressing than ever that a suite of complementary (to the CPRS) measures are put in place to encourage building and home owners to upgrade and refurbish properties which lag behind contemporary energy efficiency standards. The complementary policy measures which have been modelled within the Second Plank Report will ease pressure on the carbon pollution reduction scheme. If implemented correctly, there is also the potential for reducing the amount of free permit allocation and financial support for companies who will participate in the CPRS, and provide Australia with real energy and carbon savings. Caroline Ostrowski

As many of ACEA’s members are aware, the ACEA as part of the Australian Sustainable Built Environment Council (ASBEC) Climate Change Task Group (CCTG) have released 'The Second Plank – Building a Low Carbon Economy with Energy Efficient Buildings' report.

The ACEA have long considered and advocated that significant investment and action in energy efficiency could successfully work alongside the CPRS to reduce Australia’s Carbon footprint. The ACEA also contend that any successful policy to reduce carbon emissions should be delivered as an incentive, as incentives have the capacity to drive behavioural change.

http://www.acfonline.org.au/Default.asp?c=65840 http://www.manmonthly.com.au/Article/BP-Solar-on-the-move-out-of-Australia/431358.aspx 3 http://www.domain-b.com/industry/power/20081119_bp_solar.html 4 http://www.atse.org.au/index.php?sectionid=1259 1 2

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NEW RELEASE

THE ACEA CLIMATE CHANGE POLICY POSITION RECOGNISING THAT GLOBAL AND DOMESTIC THINKING AND ACTION RELATING TO CLIMATE CHANGE HAS SIGNIFICANTLY INCREASED AND CHANGED IN RECENT YEARS, THE ACEA IS PLEASED TO ANNOUNCE ITS RELEASE OF THE ACEA CLIMATE CHANGE POLICY POSITION. THE ACEA HAS SPENT A SIGNIFICANT AMOUNT OF TIME AND EFFORT ON THE CREATION OF THE FOUR PAGE DOCUMENT, WHICH BRINGS TOGETHER A RANGE OF VIEWS, RECOMMENDATIONS AND PROPOSED ACTIONS TO BE UNDERTAKEN BY THE ACEA NATIONAL OFFICE. THE ACEA CONSULTATION PROCESS WAS DRIVEN PRIMARILY BY THE ASSOCIATION’S NATIONAL SUSTAINABILITY ROUNDTABLE AND BOARD TO ENSURE THAT A BROADLY AGREED-UPON STATEMENT AND POLICY EMERGED. The ACEA undertook the process of developing a policy position because: There are complex and possibly not well understood links between social harmony, health and wellbeing, education, economic prosperity, land use, transport and ecology. It is important that Australia remain globally competitive and for its people to have a sustainable future. The ACEA accepts that science has demonstrated climate change is inevitable unless our global society reduces carbon emissions significantly and quickly. There is no political, social, environmental or technological development that is going to prevent climate change between now and 2030. Climate change will modify the global competitiveness of many countries and disadvantage Australia if we do not adapt quickly. The position can be viewed and used as a general reflection of the Associations member firms’ considerations with regards to climate change and related areas. The document was designed to stimulate ideas and offer opportunities for debate for the consulting engineering industry and broader built environment professionals sector, alongside all other sectors and governments.

Within its Policy Position, the ACEA accepts that the carbon emissions that have given rise to predictions of climate change have been generated by unsustainable practices adopted by past and current generations. The ACEA contend that it is not appropriate for the costs and impact of this change to be borne entirely by future generations.

Due to the nature of the ACEA’s membership, that which ranges from large multi-disciplinary firms employing a range of skill sets, to sole practitioners which operate in niche markets, as well as a varied medium sized consultancy sector, the position offers others the opportunity to gain insight into the thoughts and ideas being exchanged relating to the changing climate within a largely diverse and important Australian business sector. Within its Policy Position, the ACEA accepts that the carbon emissions that have given rise to predictions of climate change have been generated by unsustainable practices adopted by past and current generations. The ACEA contend that it is not appropriate for the costs and impact of this change to be borne entirely by future generations. The ACEA also encourages Governments and businesses across Australia to adopt policy positions which do not limit the solutions available to the community to address climate change. The position highlights that not all

current policy positions taken by both Federal and State Governments effectively encourage the adoption of available technologies that have the potential to offer climate change solutions or mitigation measures through reduction of carbon emissions. The ACEA asks the Government to remain focussed on introducing these incentives, despite current and future economic factors. Whilst climate change is broadly recognised as a very real issue for Australia’s future, the ACEA recognises that continued economic growth and maintaining Australian industry’s global competitiveness is vital to Australia’s capacity to address the climate change challenge and to provide global leadership on this issue. The ACEA’s Climate Change Policy Position can be accessed on the ACEA website via the following link: http://www.acea.com. au/downloads/Policy%20Sustainability/ ACEA%20Climate%20Change%20 Policy%20Position%202008.pdf Caroline Ostrowski

Education is the most powerful weapon which you can use to change the world. Nelson Mandela Make a difference today. Enrol into the distance learning APESMA MBA. Enrolments now open for Study Period 1, 2009. www.mba-distance-learning.com. Short CourSES | CErtifiCAtE & DiPloMA ProgrAMS | PoStgrADuAtE ProgrAMS | CorPorAtE trAiNiNg

National Outlook AUTUMN 09

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sustainability

LET’S REBUILD A NATION, SUSTAINABLE THIS TIME… A COMMON REALISATION FOR THOSE WORKING WITH AND USING SUSTAINABILITY PRINCIPLES AND/OR PONDERING THE MANY RESULTING IDEAS, IS THAT SUSTAINABILITY IS A VERY LONG JOURNEY, ONE WHICH HAS AND WILL CONTINUE TO SPAN MANY DECADES. IT IS CONSIDERED BY SOME THAT WITHIN THIS EXTENDED TIME FRAME, IMPROVEMENTS TO THE BUILT ENVIRONMENT SHOULD CENTRE ON REBUILDING, FIXING AND UPDATING PREVIOUS OVERSIGHTS, REVAMPING OLD INFRASTRUCTURE AND SEEKING WAYS IN WHICH WE CAN FURTHER EXTEND THE TIME BETWEEN THE NEXT ROUND OF MAINTENANCE AND UPGRADES.

The impact of high temperatures for prolonged periods on our roads, our railways, our bridges and tunnels, our airports and our ports and coastal infrastructure is potentially very significant. If we do not move to adapt our buildings and our infrastructure to accommodate these impacts, the cost to society and the ability of our society to respond quickly to these events will be significantly diminished. Adaptation of material selection, design standards, operation and maintenance practices, emergency management and disaster planning will all be essential elements in maintaining our standard of living and our social cohesiveness.

The ACEA considers that such tasks would fall within the scope of the Australian Governments Climate Change Adaptation strategy of which the details are yet full to be announced. The adaptation strategy broadly seeks put in place measures which will result in an update of Australia’s infrastructure, particularly the infrastructure which has been damaged or worn by previously unpredicted weather conditions and/or human behaviour. If indeed one of sustainability’s central applications is to make improvements to the already existing components of the built environment, it seems the task, as common thinking suggests, may take many decades complete. Adaptation is potentially one of the most significant aspects of climate change for Australia and will involve very significant public and private investment and considerable time if we are to be successful. The impact of high temperatures for prolonged periods on our roads, our railways, our bridges and tunnels, our airports and our ports and coastal infrastructure is potentially very significant. If we do not move to adapt our buildings and our infrastructure to accommodate these impacts, the cost to society and the ability of our society to respond quickly to these events will be significantly diminished. Adaptation of material selection, design standards, operation and maintenance practices, emergency management and disaster planning will all be essential elements in maintaining our standard of living and our social cohesiveness. It is imperative that we start planning now for this adaptation, such that new technologies can be developed over time and that the current stock of buildings and infrastructure can be slowly replaced and upgraded to accommodate the adaptation required.

The Government, namely the Department of Climate Change (DCC) and Water have begun taking the first steps towards planning Australia’s actions in response to adaptation of climate change that has been built into the system and that we cannot avoid. One ACEA member firm will assess the effects of climate change on Australia’s infrastructure on behalf of the DCC by undertaking a National Infrastructure Climate Change Adaptation Risk Assessment (NICARRA) which will consider the challenges facing key infrastructure to 2070. The condition and performance of our infrastructure critically influences the growth and international competitiveness of the Australian economy and subsequently, the living standards of Australians. Climate change has a number of possible outcomes, such as rising average temperatures, an increase in the number and severity of storm activities, and rising sea levels. The report will outline the strengths and vulnerabilities of Australia’s significant infrastructure, or what is termed ‘economic infrastructure.’ The assessment will also consider planned infrastructure in the main sectors of transport, energy, water, communications and buildings and settlements, namely commercial and residential building stock. The final report will provide a basis for the Department of Climate Change and the Australian Government to implement solutions for prevention, adaptation and mitigation. For Australia to successfully complete any scale of adaptation upgrades, the process must be one which is centered on collaboration, expertise and sustainable planning. If Australia can successfully deliver the commonly considered ‘immense’ amount of adaptation measures required in the built environment, we can assume with perhaps a little more certainty, that future generations will have a better opportunity to excel at any new improvement measures, by planning with purpose, designing with vision and constructing with intent in mind. Caroline Ostrowski

If we act now to postulate future climate scenarios, to model potential outcomes, to assess risk and identify critical issues, we will be able to carry out the required research, technology development and testing before we face a crisis. AUTUMN 09 National Outlook

sustainability

GHD KEEPING IT COOL THE USE OF BUILDING STRUCTURE OR SHADING DEVICES TO PROVIDE PROTECTION FROM THE SUN HAS BEEN A FEATURE OF MIDDLE EASTERN CULTURE FOR CENTURIES. The traditional tent, which is perhaps one of the greatest symbols of Arab culture, is a clever and economic shelter from the sun and wind, and the Mashrabiya – the protruding, window enclosed with carved wood or latticework – also provides shade and controls heat. It is no surprise, that one of the innovative concepts being worked on by GHD in Doha is a sun-tracking shading system for high-rise buildings. The innovative solar tower concept incorporates a shading mechanism that tracks the sun throughout the day to reduce heat gain on the building, and thus the need for cooling inside, and generate electricity.

It also reduces the need for artificial lighting because natural daylight can penetrate those areas not affected by direct sunlight. GHD Doha Architecture Manager Martin Hay, who developed the idea, said innovative approaches to shading were needed in order to create truly sustainable cities. “We wanted a device that would shield the sun, allow daylight penetration and cut down on airconditioning,” he said. “What we are proposing is a shield on a lightweight frame, incorporating photovoltaic cells that sit like a skin on the outside of a building.” “The cells power the motor so that the shield, which is externally mounted and travels on tracks at each floor level, can follow the sun’s path through the day to keep the shield in line.” “We estimate that if you mounted the system on a 40,000 m2 building, 40 floors high, you could reduce CO2 production by 600 tonnes a year and generate 70,000 kilowatt hours of electricity.”

National Outlook AUTUMN 09

The concept has sparked interest in the Middle East where summer temperatures of 48C-plus and regular dust storms make keeping homes and offices cool a full-time business. The idea was first lodged through GHD’s Innovations program, which encourages the company’s 6500 employees worldwide to submit, collaborate and vote on ideas via a custom-built innovation portal. These ideas receive seed funding from GHD to enable them to be refined and tested, with the end goal being to see them delivered. Mr Hay said GHD would work with selected manufacturers to refine the sun-tracking shading system concept. “We also want to explore the potential for transference of electricity generated by the system to the grid or a water-based cooling system powered by the shield to further reduce airconditioning,” he said. GHD

sustainability

PB KICKED OFF 2009 AS THE FIRST CARBON NEUTRAL INFRASTRUCTURE CONSULTANCY PARSONS BRINCKERHOFF (PB) BECAME THE FIRST INFRASTRUCTURE CONSULTANCY IN AUSTRALIA TO REACH CARBON-NEUTRAL STATUS DURING LATE 2008. PB DIRECTOR OF SUSTAINABILITY DARREN BILSBOROUGH SAID PB SAW NO REASON TO DELAY THIS IMPORTANT MOVE. “We have the understanding and skills to become carbon-neutral. We can act now to adapt our business for the carbon-constrained future and we hope to encourage other organisations to do the same,” said Mr Bilsborough. The Colliers International 2008 Office Tenant Survey showed that 39 per cent of organisations measure their carbon footprint and 35 per cent report the findings publicly. The question remains how many of these organisations also offset those emissions they cannot reduce? To achieve carbon-neutral status PB had to first comprehensively audit its carbon footprint, reduce its emissions and then offset those emissions which could not eliminated. Global carbon management company, Carbon Planet then did an independent assessment of PB’s audit. The 2008 audit was the first complete measure of PB’s carbon emissions and thus will provide a benchmark for future years. After introducing carbon reduction strategies and targets, PB voluntarily purchased offsets to mitigate the balance of its remaining carbon emissions and become carbon neutral. Based on conservative estimates until the figures for the year are confirmed by Carbon Planet, PB’s offset requirements equated to approximately 1,000 tonnes of carbon dioxide per month in 2008.

Image: Courtesy of SMRC

Mr Bilsborough explained PB elected to use carbon abatement credits from the Southern Metropolitan Regional Council (SMRC) in Western Australia.

Mr Bilsborough acknowledges carbon offsetting is not the primary objective and PB continues to work towards reducing its emissions in the first place.

Diversion from landfill has the dual benefit of reducing waste and also reducing the production of methane – a gas 21 times more potent than carbon dioxide. PB made this decision with great care – we sought carbon abatement credits which are verified by independent auditors and by the Federal Government.

The important fact is we are taking steps to manage our carbon and we will continue to improve how we do this. For example, PB’s national action plan includes a 25% reduction in air travel target, the introduction of videoconferencing and PB green teams who champion the reduction of greenhouse gas emissions across PB’s operations in Australia and New Zealand.

SMRC’s facility is a verified, Australian Government Department of Climate Change Greenhouse Friendly abatement project. In addition, Carbon Offset Watch and Choice rate the SMRC offsets as ‘outstanding’. SMRC’s Waste Composting Facility diverts from landfill the household rubbish of more than 350,000 residents in Perth’s southern suburbs. The organic waste is composted in an anaerobic methane digester, which reduces carbon emissions because the process occurs without oxygen. It is the net difference in carbon emissions between landfill and compost that gives SMRC its carbon abatement, which is converted into carbon credit units.

PB has committed to reviewing its carbon status on an annual basis at least and aims to reduce overall emissions by 20% in the coming year. The company also assists other businesses to become carbon neutral. The PB Climate Change Business Unit provides advice to clients about emission reduction and adaptation strategies. Mr Bilsborough said “carbon-neutrality is a just one of the many ways we need to adapt. It is a decisive step we can take now to ensure our overall well-being into the future. We encourage other businesses not to delay this move.” PB’s Climate Change Policy is available at www.pb.com.au. See Who we are > PB and sustainability.

Image: Courtesy of SMRC

PB’s emissions audit was conducted as per AGO’s Greenhouse Challenge Plus – see http://www.climatechange.gov.au/ greenhousefriendly/index.html For more details about SMRC landfill offsets see http://www.carbonoffsetguide. com.au/providers/SMRC Parsons Brinckerhoff

AUTUMN 09 National Outlook

XYPEX SPECIFIED FOR VICTORIAN POWER STATION DEVELOPMENT XYPEX ADMIX C-SERIES HAS BEEN SPECIFIED IN 8,000 CUBIC METERS OF CONCRETE FOR A NEW POWER STATION DEVELOPMENT NEAR MT BEAUTY IN VICTORIA. THE POWER STATION IS DESIGNED TO PROVIDE AN ADDITIONAL 140MW TO THE KIEWA HYDRO ELECTRIC SCHEME. Xypex was specified to provide long term durability and additional waterproofing to this vital infrastructure development. Xypex generates a non-soluble crystalline formation deep within the pores and capillary tracts of concrete - a crystalline structure that permanently seals the concrete against the penetration of water and other liquids from any direction. Xypex Admix C-series is formulated to meet varying project and temperature conditions and complies with the requirements of AS1478.1 as a Type-SN special purpose admixture. The location and climatic conditions of the project required an on-site mobile batch plant, with Xypex supplied in specialised packaging to suit these unique requirements. The project is expected to be completed May 2009.

SUSTAINABILITY IN GHD IN EARLY 2008, GHD ESTABLISHED A SUSTAINABILITY ADVISORY GROUP AS PART OF ITS COMMITMENT TO BEING A RESPONSIBLE CORPORATE CITIZEN. THE GROUP COMPRISES OF SENIOR MANAGEMENT IN A NUMBER OF KEY BUSINESS AREAS AND IS CHAIRED BY GHD DIRECTOR DAVID RYAN. The group’s role is to identify and address global and local sustainability issues in a business opportunity sense. “Having a high level of management involvement means GHD can be strategic and influential as we strive to enhance the capacity and capabilities of our staff across the organisation,” David said. “But we also handle the nuts and bolts of GHD’s business operations such as reviewing and reporting on our environment management systems, resource management and purchasing policies.

National Outlook AUTUMN 09

“Already we are collecting data on electricity use, greenhouse gas emissions and paper use as part of our efforts towards company carbon neutrality. For example, we have invested in new technology with automatic reporting functionality so we can collect corporate environmental data worldwide.” “GHD recognises its corporate responsibility to contribute to the goals of sustainable

development. We’re committed to managing the social, economic and environmental impact of our operations and to assisting our clients to manage theirs.” For more information about GHD and its sustainability services and goals, visit www.ghd.com.au GHD

sustainability

TOWARDS A SUSTAINABLE FUTURE: SKM 2007-08 ANNUAL REVIEW LEADING ENGINEERING, SCIENCES AND PROJECT DELIVERY FIRM SINCLAIR KNIGHT MERZ (SKM) REINFORCED ITS COMMITMENT TO SUSTAINABILITY IN ITS 2007-08 ANNUAL REVIEW, WHICH HAS JUST BEEN RELEASED. Launching the report, Paul Dougas, SKM CEO said, “For us, sustainability is about responding to inter-related economic, social and environmental issues in creative ways. Never before have such challenges coincided so strongly to produce the ‘perfect storm’ that is so readily apparent today. And the current economic crisis does not mean the environmental crisis has gone away.” SKM’s report includes detailed emission reduction targets, following a commitment from Mr Dougas to cut SKM’s GHG emissions by 30 per cent per capita by 2011. “This is an enormous challenge. We remain committed and will work hard to meet this goal,” said Mr Dougas. “We will not purchase offsets until we have reduced emissions as much as possible.” To set the targets SKM put significant effort into measuring its carbon footprint, using in-house expertise to assess aspects of its business, from air travel to building efficiencies. A comprehensive reduction programme is underway, focusing on cutting business travel, improving building infrastructure, and upgrading video conferencing and IT facilities. At the same time, it’s through the diverse

range of projects with its clients that SKM expects to make the greatest impact. “Sustainability is now central to everything we do. And we believe the greatest impact we can make is in the delivery of sustainability principles through major projects around the world,” said Mr Dougas. “We will continue to work alongside our clients in response to the challenges of adapting to climate change and other issues that are becoming increasingly evident." The 2007-08 Annual Review also highlights SKM’s broad range of social sustainability initiatives. This includes the establishment of a Board sub-committee to streamline the approach taken to SKM’s community support and develop long-term relationships with various community groups to make a positive and enduring impact. Other community activities featured in the report include details of a project to provide fresh water for Balinese villages, an overview of SKM’s close relationship with Beacon Foundation, and the innovative Something Concrete project. Using pre-cast concrete technology, the Something Concrete project tackles the dual issues of indigenous youth unemployment and a lack of public housing in Western Australia’s East Kimberley region.

The 2007-08 Annual Review demonstrates the strength of SKM’s business model. SKM’s revenues broke the $1 billion barrier for the first time in 2007-2008. “In terms of the sustainability of our own business, it is worth emphasising that SKM is in a strong business position. Our performance remains strong, we have effectively no debt and as a private, employee-owned business we are not subject to the vagaries of the public markets. This is a clear vindication of our ownership model, balance sheet management and conservative risk taking values,” said Mr Dougas. “While there is some uncertainty in global financial markets, we are cautiously optimistic about the outlook, acknowledging that we need to be alert to changes and prepared to respond quickly. Business opportunities in sustainability are particularly exciting; I note for example that Björn Stigson, President of the World Business Council for Sustainable Development, recently suggested that between now and 2050 there will be $US45 trillion spent on power projects alone.” To view 2007-08 Annual Review go to: www.skmconsulting.com/200708AnnualReview/ SKM

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National Outlook AUTUMN 09

sustainability

THE PROPERTY SLOWDOWN IN THE GULF SOUNDS THE DEATH KNELL FOR SUSTAINABILITY… OR DOES IT? THE PROPERTY MARKET IN THE GULF STATES (SAUDI ARABIA, UAE, QATAR, BAHRAIN AND OMAN) HAS BENEFITED FROM THE INCREASING PRICE OF OIL AND GAS AND FROM THE POLITICAL STABILITY WHICH EXISTS THERE. SPECTACULAR GROWTH OVER THE PAST 10 YEARS HAS SEEN THE REGION, PARTICULARLY DUBAI BECOME THE FOCUS FOR THE WORLD’S CONSTRUCTION INDUSTRY. The turmoil in the world financial markets, and the resulting reduction in credit and liquidity, together with the collapse in the oil price from US$147per barrel to around $40, has caused a major restructuring of the property sector and suddenly things look rather different. Dubai is feeling the effects the most because the majority of its projects were speculative and debt funded. The economic upheaval has meant that the funds now are unavailable and potential clients cannot raise purchase funds as easily as in the past. All appears to be doom and gloom, but is it really all bad news? For those who survive the trauma of the sudden market slowdown there will undoubtedly be opportunities. Construction material costs have fallen dramatically and contracts are being renegotiated. There is now time to undertake a considered and value engineered design process which will result in more efficient construction. This should carry through into better quality construction across the whole market rather than just at the top end as at present.

In addition it means more time to consider sustainable solutions which are often disregarded as being too difficult or too innovative. Previously where master developers just wanted to hand over their plots to other developers, there is now an opportunity for them to think about longer term approaches which would benefit the local community and their environment. For example integrated waste management has long been neglected during the planning and design of developments, with individual plot owners designing the collection and storage of waste from one or two buildings in isolation or employing their own waste contractors. Now master developers have the time to plan the collection, storage and treatment of wastes from the whole development and consider it as a resource not an afterthought. This opens the door to reuse, recycling, community awareness and revenue generation initiatives. Sustainability and ‘green credentials’ have become de rigeur over the past two years, principally as market differentiators. The need to find market differentiation will grow as the

About the author Stewart Tyler has been based in UAE for 3 years after leading Hyder’s business in East Asia. He is responsible globally for Hyder’s work in the property sector which accounts for around 50% of the total business of the Group.

property market becomes more competitive and investors flee to quality as in normal during tough times. Furthermore we could expect to see ‘sustainability’ in the guise of cost reduction. For example energy efficient designs, the use of locally sourced materials, rather than importing, the reuse of construction materials or even the loss of sumptuous but extremely inefficient water features. Clients will become more discerning as they consider the increased range of property purchase options. The use of technology, always popular in the Middle East, should also receive a boost through its increased use in controlling the operation of and environment within buildings. Notwithstanding the current difficulties the fundamental advantages which the Gulf States possess still apply. Growth will continue to be funded by the natural resources which remain in abundance and their location as a business and logistics hub remains ideal. The region remains a stable, largely tolerant and pleasant place to live and work and if it is sharing some tough times with the rest of the world at least the winter weather is just about perfect. Stewart Tyler

AUTUMN 09 National Outlook

sustainability

URS QUEENSLAND SETS THE STAGE FOR SUSTAINABILITY WITH THE QUEENSLAND THEATRE COMPANY A UNIQUE ‘GREEN’ PARTNERSHIP BETWEEN URS AND THE QUEENSLAND THEATRE COMPANY PROVES THAT INNOVATION KNOWS NO DIVIDE BETWEEN SCIENCE AND ART. URS Asia Pacific is committed to sustainability across all of its business operations to deliver innovative and improved solutions for our ever-changing world. Community involvement and participation are considered critical components of URS’ ability to ‘walk the sustainability talk’. With this in mind, URS Queensland approached the Queensland Theatre Company to develop a collaborative and long-term partnership focused on improving sustainability practices across both organisations. The two companies embarked on Queensland’s first “Green Theatre” where URS is assisting this not-forprofit arts organisation in creating the first green production of their 2008 signature performance of The Importance of Being Earnest. URS will calculate the emissions created in the preparation and production of the play for the entire season then purchase accredited offsets on behalf of Queensland Theatre Company to neutralise the total emissions generated. This has involved detailed planning and collaboration between the two organisations who have been developing this concept since March 2008. To determine the total emissions output of the production, the team had to look at travel by the actors and support staff, the types of cars and distance travelled, set production and rehearsal materials. Our emissions specialists had to assess the materials used in set production, the means for transporting the set and how the set would be recycled or discarded following the production; they also looked at the electricity output for the duration of the performance. According to Queensland Theatre Company General Manager Libby Anstis, the collaboration has provided an interesting educational process for their staff. “This is the start of an interesting journey for our Company and we are interested in understanding our impact on the environment, and looking for areas of improvement.” This partnership is the first of its kind in Queensland with Queensland Theatre Company being the first major performing arts company to participate in this type of initiative, and it is the first time URS has collaborated with not-for-profit organisations in this manner. According to Bob McGowan, Regional Manager URS Queensland, the green theatre provides unique opportunities for URS personnel who are not normally exposed 34

National Outlook AUTUMN 09

to the creative industries. “This collaboration is unique for URS. We’ve been exposed to a slice of the economy we normally don’t see. It has been a wonderful learning opportunity to collaborate with the Queensland Theatre Company, to see the passion they bring to their work, and to assist them in the sustainability journey.” The enthusiasm from staff across both organisations prompted URS and Queensland Theatre Company to look at ways they could extend the partnership and maximise the benefits the program had brought to their teams and the environment. Rather than a ‘flash in the pan’ effort, the team are now collaborating on a longterm sustainability framework for 2009. Under this framework URS will develop a sustainability plan for the Company operations to build on the successes of the Green Theatre initiative. Both organisations are committed to extend the reach and deepen the focus of their partnership and continue the opportunities this longer term focus offers to artists, audiences and local communities. It also provides a unique opportunity for our technical specialists to apply their skills in a different way, working on non-resource based projects. Similar initiatives are being held around the country with URS Western Australia strongly supporting the Perth International Arts Festival. URS recognises and appreciates the outstanding contribution the Festival makes to growing and promoting Perth’s arts scene and is proud to be part of the event and the opportunity it provides to expose URS staff to experience a wide range of musical performances from Australia and around the world. For further information please contact URS Ph: (07) 3243 2111 www.ap.urscorp.com

URS Asia Pacific is committed to sustainability across all of its’ business operations to deliver innovative and improved solutions for our ever-changing world. Community involvement and participation are considered critical components of URS’ ability to ‘walk the sustainability talk’. With this in mind, URS Queensland approached the Queensland Theatre Company to develop a collaborative and long-term partnership focused on improving sustainability practices across both organisations.

sustainability

MANAGEMENT THROUGH VOLATILE TIMES WE ARE CURRENTLY IN A TIME OF RAPID CHANGE AND THE FUTURE SEEMS UNCERTAIN. RECENT INDUSTRY ATTENTION HAS BEEN DIRECTED AT CONCERNS THAT THE SUPPLY OF GRADUATE ENGINEERS WOULD NOT MEET PROJECTED DEMAND. NOW THE SHORT TO MEDIUM TERM FOCUS OF ENGINEERS WILL BE HOW TO BEST WEATHER THESE VOLATILE TIMES. Despite all previous industry success, engineers are not immune from the effects of the global financial crisis with the mining and construction sectors being hit the hardest to date. While experts predict a significant downturn for the engineering industry in 2009, the medium to long term future appears positive. Rather than behave negatively and simply ‘batten down the hatches’, engineering firms should use this period; to put their business in the best position to maximise any opportunities that present during a tightening market, and also when the economy recovers. John Downes, Partner at Deloitte, outlines three areas to consider in managing these volatile times. Shifts in Revenue While certain areas of the engineering industry are expected to slow in mining and construction, there are still new work opportunities available both locally and internationally. The Transport Blueprints will lead to significant opportunity, as will other large pump primary infrastructure projects. We might also expect a shift toward new work on existing buildings. Existing buildings may be old and require structural maintenance or changes to improve energy efficiency. Given the current financial woes, owners may prefer to revamp rather than construct from scratch. On the local front, the Federal Government’s decision to grant $300 million to local councils and accelerate the spending of the National Building Funds will provide a range of opportunities for engineers in community infrastructure projects. Council grants are to be spent during 2009, so firms should act quickly to assist local councils in applying for the grant and if successful, in developing the projects.

The drive toward sustainability and reduced carbon emissions should also be increasing new and retrofit design work across the automotive, manufacturing and waste management sectors. Capability management You may be experiencing down time for the first time in many years. In fact this may be the first time some staff have ever experienced spare time during the day. Whilst this can be seen as a cost to be saved, effective use of downtime can be a source of long term competitive advantage. Firms should use available time to improve and or broaden the skill base of their engineers. In line with predicted growth areas, firms may choose to up or re-skill engineers in areas such as sustainability, affordable housing, water, energy and clean technology. It may be possible to convert talented but underutilised staff into recognised experts in new engineering fields which can increase your firm’s credentials leading to growth. Capability can also be increased through forming local and international strategic partnerships. Well developed partnerships will not only effectively increase the size of your available workforce, but enable involvement in fields of engineering not common to your firm. Management of expenses During a time of rapid growth, the costs of the business can increase in an uncontrolled manner. It may be possible to achieve the same output firm-wide whilst incurring fewer costs. A period of downtime provides the imperative for firms to ensure that they are cost effective and their operations are sustainable.

The drive toward sustainability and reduced carbon emissions should also be increasing new and retrofit design work across the automotive, manufacturing and waste management sectors.

Firms should monitor and control business expenditure to free up cash flow, which will provide them with greater flexibility to respond to change. Areas to focus on will include: 1. IT systems: Often a firm’s Management Information Systems are developed in an ad-hoc manner. Engineers use systems specific to their expertise, combined with the systems used to manage their business such as billing and time management systems. During busy times, systems are often deployed based on an immediate need without proper consideration, if they best fit the purpose or are the most cost effective option. Now may be the time to undertake a review of all MIS systems, how they work together, and how to maximise the value and the efficiency you can achieve. 2. Human Resources Firms should take this time to review and assess their organisation design to ensure that it is in the most effective structure. It is essential that the selected structure allows for growth in order to prepare for when success in the industry comes around again. Given the high costs associated with people, an appropriate consideration may be how to manage human resource levels in uncertain times. Use of contractors to supplement fulltime employees can be an option, although it is important that your firm does not lose capability or its skilled employees. Contractors are typically more expensive so financial modelling will help companies understand and develop the ideal mix to retain capability, and minimise costs over time. There is no doubt that for many engineers and their firms, the next 18 months will be a rocky road. With careful planning, management and effective use of time, however, this period of industry volatility could provide invaluable opportunities for firms to come out ahead of their competitors as the economy stabilises. John Downes; Consulting Partner, Deloitte

AUTUMN 09 National Outlook

sustainability

SUSTAINABLE OPPORTUNITY WHEN CONNELL WAGNER WAS ENGAGED BY BIANCO TO CREATE AN INDUSTRIAL WAREHOUSING FACILITY FOR THEIR SALES AND DISTRIBUTION CENTRE, A UNIQUE OPPORTUNITY PRESENTED ITSELF; TO APPLY THE BEST IN SUSTAINABLE BUILDING PRINCIPLES TO THIS INDUSTRIAL PRECINCT. The strong aesthetic of the building forms and increased functionality of the design, combined with the conversion of the existing contaminated site into wetlands for water treatment, made this project exciting, innovative and truly sustainable. Connell Wagner worked closely with Cheeseman Architects throughout the project to ensure sustainable design was considered at every turn. Consideration was given to all aspects of Bianco’s daily operations and the resulting ecofootprint, before the design of both the site and buildings began. The use of specialised materials to reduce energy consumption was key, as was the creation of wetlands for the treatment of stormwater to reduce the reliance on council infrastructure. These solutions offered Bianco a more sustainable approach to their entire business operations. From the adjoining major arterial roads, the buildings have a non-industrial look, providing an aesthetic backdrop to the surrounding wetlands on the site. The innovative use of glass reduces the lighting energy consumption for Bianco, and designing with structural glass meant creative solutions were possible in the striking façade. Internally, the building structure was designed with flexibility and sustainability in mind. By designing a column-less interior the usable space was dramatically increased, resulting in greater flexibility for present plant layout and allowing for future expansion without building works. For Bianco, this meant their production could be streamlined around their machinery rather than the equipment layout accommodating the structure. Externally, the wetlands create a natural water cycle onsite, treating stormwater

through the use of cascading ponds and swales, with native vegetation throughout. The landscape design also considered the management of harmful pollutants, and appropriate native vegetation was selected based upon its natural biological uptake of pollutants such as phosphorus and nitrogen. It was the creation of this highly sustainable water treatment wetland that posed some of the greatest challenges in this project, particularly in preparing for potential catchment wide flooding events. With this in mind, the ponds were designed to receive run-off from the 10 and 100 year ARI’s, where any water not infiltrating the soil, will be slowreleased downstream over a two to three and a half day period. The water flow is managed by slow flow control devices between the ponds, which ensure that the emptying takes place in each pond over the required period. Furthermore, an important sustainable feature of the Bianco facility is the use of an impressive 1 ML water storage tank (primarily fed from the wetland) used for equipment washdown, as well as toilet flushing throughout the site. It was a priority for Bianco that the facility served as an outdoor laboratory for environmental science, chemical technology and civil engineering students from the nearby Mawson Lakes Campus of the University of South Australia. It is this ongoing relationship with the university that will aid the continuing monitoring of the success of the wetlands, and to collate real-data results over the coming years. A core aim of the Bianco Group’s new facility was to showcase the implementation of environmentally sustainable engineering solutions within an industrial environment.

For example the new stormwater management system provides the site with a substitute to mains water during the winter, reducing the on site water usage during this period by up to 70%. In terms of energy consumption, daylight modelling optimised the roof lights to achieve adequate natural light on a clear day in winter without artificial lighting. A further benefit of this innovative day lighting design is the reduction in heat gain in internal spaces. ‘StepDim’ artificial lighting combined with light level sensors provides automatic 50% and 100% steps in the artificial lighting for night-shift and when natural light is inadequate. Additionally, in office areas occupancy detection ensures lights are off when not required. Thermal modelling was used to predict internal temperatures within the steel fabricated building. The building fabric, natural ventilation openings and ridge vents were designed to maintain acceptable conditions at operator positions without the need for mechanical ventilation or air conditioning. This exciting and technically brilliant sustainable success story brings together many elements of leading building and environmental practice – stormwater management, harvesting and on-site reuse, innovative energy management through advanced control systems, and the public benefit through educational potential. The Bianco Steel Fabrication, Hire and Sales and Distribution Centre at Gepps Cross represents a new benchmark for sustainable industrial site developments, certainly nationally and arguably internationally. Connell Wagner

bianco building products development water cycle schematic bianco

storage tank + pump

WASH BAY

overland flow

SWALE

overland flow

STORAGE POND

from mains water supply (sa water) to irrigation system

National Outlook AUTUMN 09

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StruCad V15 Model Manager WITH ALL THIS TALK ABOUT COLLABORATION, WHAT EXACTLY DOES IT MEAN? IF YOU HAVE DISTRIBUTED TEAMS WORKING ON A GLOBAL PROJECT, HOW EFFICIENTLY CAN YOU SHARE MODEL DETAILS, WHILST ENSURING THAT EVERYONE IS WORKING ON THE SAME REVISION? HOW EASILY CAN YOU DETECT CHANGES TO A MODEL, OR ERRORS, AND PREVENT DUPLICATION OF WORK - OR CONTROL THE ISSUE OF THE WHOLE MODEL OR PARTS OF IT TO PROJECT TEAM MEMBERS - FOR PRODUCTION? Everyone has the same problem. How do you effectively issue a 3D model to everybody, and keep track of all the modifications and updates without compromising the project? With the release of StruCad Version 15 - the most significant upgrade to the core module of AceCad Software's popular suite of structural steel software that question is effectively answered. The latest version comes with a new and unique integrated software module, that provides a simple, yet efficient model management system with powerful issuing facilities, and collaboration capabilities via a LAN, WAN or the Internet. Providing the same level of functionality for both single or multiple users, it provides them with the ability to log on, download models, work on them, and then send the results back to the main server, with powerful change detection and management tools that can intelligently detect model changes, highlighting them on the screen in both 3D and list form - and then keep track of every change made to the model over its lifetime! Models are issued, in whole or in part, at any stage of the project, maintaining all mark and solid data generated by project team members, from one issue to the next, and automatically rebuilding the initial issue model, and ensuring changes are persistent from one issue to the next. The module is also used to prepare and manage model data for production purposes, ensuring that the data remains consistent with the model, and able to co-ordinate late modifications to the model. Admin and Security. A vital part of any collaboration solution is the setting up of rights and security levels. The most efficient solutions provide complete security at a global level, yet retain flexibility and simplicity of access for each user. It's not just about controlling access, though. The system must provide adequate back-up and system maintenance features should it be compromised in any way. The StruCad Model Management system, therefore, provides a full visual history of the model's development, providing an audit trail with full system rollback facilities. This means that the model's history can be viewed at any stage, detailing changes that have been made in both 3D and list form. The advanced rollback facility allows the model to be restored to any point in its lifetime at the click of a button. The Model Manager and Issuing System workspace was developed using the latest Microsoft .NET and SQL technologies. Besides providing an improved user interface, it enables all of the different features of Model Management and Issuing to be fully integrated, with enhanced work folders, with filtering and group definable categories, and a fast and effective communication system that features drag and drop access to model files, automatic zipping and e-mailing. It also allows interactive previews of models to be interrogated without having to open the model file. Already having a mature product in terms of structural steel modeling StruCad Version 15, with its Model manager now also provides the answer to the question of full team collaboration.

ECONOMICS & TAXATION Matthew King is a Policy Officer for the Association of Consulting Engineers Australia. Matthew represents the members interests in the areas of Economic Management and Taxation. Matthew can be contacted at matthew@acea.com.au

WHAT EFFECT IS THE ECONOMIC DOWNTURN HAVING? What’s the economy doing? In its World Economic Outlook (WEO) update, the International Monetary Fund (IMF) has drastically revised down its forecast for the global economy since the November 2008 WEO update and has called for further action to support growth. This update represents the third downward revision to IMF forecasts in just four months, demonstrating how rapidly the global economy is deteriorating. The IMF is now forecasting that the global recession will be much deeper and more protracted than previously envisaged. Global growth is now expected to fall to 0.5 per cent in 2009, with advanced economies expected to suffer their deepest recession since World War II. Collectively, advanced economies are expected to contract by 2 per cent in 2009. Most economists now expect very little, if any, growth in the Australian economy in 2008/09. But swift policy responses, both monetary and fiscal, may keep growth positive according to economist Geoffrey Bills. The IMF also notes that the dramatic slowing in global growth has brought about a reversal of the global commodity prices boom, which has provided significant stimulus to Australia’s economic growth in recent years. Changes in the number of fully-employed people show that, except in WA, employment began to fall in the December quarter. The number of fully-employed is likely to decline further through the first half of 2009. Major drivers of consulting engineering In contrast to the strength of the June quarter of 2008, the September quarter revealed some mixed results that were reported by Master Builders Australia (MBA). Seasonally adjusted, the chain volume of construction work done in the September quarter 2008 rose by 4.4 per cent to $34.2 billion to be 8.8 per cent above levels in September quarter 2007. The chain volume of building work done in the September quarter was down 0.5 per cent to $17.9 billion, to be up 0.8 per cent on the previous September quarter. Work done on residential building rose by 0.9 per cent to $10.5 billion, to be up 2.8 per cent on the corresponding figure a year earlier. Non-residential building fell by 2.4 per cent to $7.4 billion, and is down 2.1 per cent on the previous year’s level. Engineering construction work done rose by 10.4 per cent to $16.4 billion to be up 19.1 per cent above the previous September quarter level. Mr Peter Jones, MBA’s Chief Economist stated 38

National Outlook AUTUMN 09

in a November media release that “the key to the outlook for the construction industry over the next year or so will be whether an upswing in the residential sector can offset looming weakness in non-residential activity, as the previously strong backlog of work begins to ease off. Despite a strong result in the September quarter, the outlook for engineering construction will begin to turn in line with the fall in commodity prices, although a massive pipeline of resources-related work yet to be done and State Government infrastructure spending, should cushion the fall.” On January 8, 2009 the Australian Bureau of Statistics released its Building Approvals (Australia) data for November 2008. The trend estimate for total dwelling units approved fell 4.2% in November 2008 and has fallen for 12 months. The seasonally adjusted estimate for total dwelling units approved fell 12.8%. The Government would no doubt be disappointed with this result as it was hoped that the increased First Home Owners Grant and decline in interest rates would be lifting approval numbers in November. This sort of decline reflects the general slowing of the economy and difficulties faced in securing finance for new construction projects. Added to this, is poor consumer and business confidence. Outlook for 2009 Turmoil in the world’s financial markets and near-recession conditions in the US, Europe and Japan have changed the economic outlook in Australia quite dramatically. Although growth will slow, lower interest rates and the Government’s fiscal-stimulus packages should ward off recession. Fortunately the Government has reacted quickly, through initiatives such as the 10 per cent investment allowance, to encourage businesses to undertake capital investment. Despite new Government initiatives such as this, the consulting engineering market is nevertheless likely to weaken in 2009/10. A number of representatives from large ACEA member firms have already reported delay and uncertainty in overseas engineering projects. In some cases, projects have been abandoned. However, it has been reported that no major impact is likely to be felt in the first half of 2009 due to projects in the pipeline, but there is some uncertainty as to the level of activity after that period. There has been some feeling amongst the ACEA membership that it is still very much the early stages of economic uncertainty, and that there is hope that the Government’s infrastructure spending will

boost activity in consulting engineering. The nervousness surrounding 2009 was confirmed by the MBA’s December quarter survey, whereby builders were asked a series of questions on the global financial crisis. The results show that over 80 per cent expect to see a reduction in their own business activity over the next 12 months as a result of the global financial crisis. Around half of these respondents believe that activity will fall by between 0 and 20 per cent, with the other half expecting activity to fall by more than 20 per cent. Similarly, around half believe staffing/ sub-contract numbers will fall by between 0 and 10 per cent, with half expecting activity to fall by more than 10 per cent. Contraction in mining activity If it hasn’t ended already, the indication now is that the mining boom is drawing to a close, which will obviously impact heavily upon engineering firms and the broader economy. Major contracting firm, Macmahon, has cut its profit forecast for the first half of 2009 from $20 million to $13m-$15m due to an increasing number of mining clients deferring and delaying their projects. “With increased uncertainty in the mining sector and deteriorating market conditions, Macmahon is now seeing lower than anticipated tendering activity, with a number of clients recently advising that they are deferring or delaying proposed mining projects,” the company said in a statement in December 2008. “We also note that several of our non iron ore and coal clients have intimated that there will likely be a reduction in production volumes,” Macmahon said (Construction Industry News, 22 Dec 2008). The ACEA’s 2007/08 Practice Performance Survey of engineering firms revealed that, for the large firms, approximately 19.5% of fees were generated from mining related activities. This figure is down on the 2006/07 figure of 22.2%. It is to be expected that this figure will decline once again in 2008/09. This shift in revenue generating activities has been confirmed by a number of ACEA large firm representatives. It has been identified that a repositioning amongst the States to road and water in their project focus is occurring, with an expectation that activity from minerals will decline. It is unlikely that the mining companies will experience substantial hardship in 2009, with Access Economics suggesting that the mining industry should have sufficient momentum from recent expansions to see good output growth. Matthew King

ECONOMICS & TAXATION

TAX OFFICE KEY RELATIONSHIP MANAGER THE TAX OFFICE RECOGNISES AND RESPECTS THE ROLE THAT BUSINESS ASSOCIATIONS PLAY AS TRUSTED ADVISERS AND SUPPORTERS TO THE SMALL BUSINESS COMMUNITY.

As part of the Small Business Assistance Program the Tax Office appointed a Key Relationship Manager in 2008 to the Australian Chamber of Commerce and Industry in an effort to strengthen relationships and provide better support to small businesses. The role provides assistance to association members including the Association of Consulting Engineers Australia (ACEA) by making them aware of help and assistance available from the Tax Office and how to access it. This includes information on: meeting your tax obligations; adopting best practice in regard to their taxation obligations; and growth and change when applicable (eg moving from a sole trader to company tax structure; employing staff and meeting superannuation obligations).

In addition, the key relationship manager seeks to address any systemic issues which may be causing avoidable compliance costs to members and identify: issues concerning administration of the tax system; ways to minimise the cost of compliance; strategies to address compliance risks; understand the communication and education needs of the sector; increase awareness of tax issues within the sector; seek feedback on the Tax Office’s service delivery and performance; and to continue to involve small business owners and their representatives when co-designing services and products. For more information on the Small Business Assistance Program visit www.ato.gov.au/businesses or to provide your feedback on how the Tax Office can assist your business contact the ACEA on 02 9922 4711. Matthew King Provided by the Australian Tax Office Small Business Assistance Program.

NEW FOCUS FOR THE ACEA ECONOMICS & TAXATION ROUNDTABLE THE ACEA ECONOMICS AND TAXATION ROUNDTABLE WAS UNANIMOUS IN ITS DECISION FOR A RENEWED FOCUS IN 2009. IN ITS MEETING ON 3 DECEMBER 2008 THE ROUNDTABLE MEMBERS VOICED THEIR SUPPORT FOR THE ROUNDTABLE AND IT WAS AGREED THAT THERE MUST BE AN INCREASED FOCUS ON THE ECONOMIC CLIMATE AND THE RELEVANT DATA.

In light of the present uncertainty surrounding the global and domestic economy, it was agreed that discussion and feedback on relevant economic developments and their impact on members’ respective firms would be very useful. It was agreed that it would aid committee members in their pursuit of stability and sustained growth in the face of new challenges faced by their respective firms. All future meetings will now incorporate an overview of the current and forecast global and domestic economic climate based on sources such as the IMF, the Australian Construction Industry Forum (ACIF) and the Housing Industry Association (HIA). The following indicators will be provide the basis for the overview and discussion: Global economic growth; Domestic economic growth; Growth in developing economies; New housing construction; Non-residential building construction; Engineering construction; and Commodity prices.

In conjunction with this spotlight on the economic climate, the Roundtable will continue to maintain its focus on tax-related issues, which have been a focal point of its work since the committee’s commencement. 2009 will see a resumption in concentrated efforts to assist the Government in reforming tax systems, whilst ensuring the Government’s revenue stability. Two areas of particular interest will be: 1. Working towards a total exemption from fringe benefits tax on child care; and 2. Restoration to the Research & Development tax concession after-tax benefit for firms. It was also agreed in December 2008 that the Roundtable should meet on a quarterly basis, with an emphasis on encouraging other members to join. If you are employed by an ACEA member firm and are interested in joining the Roundtable, please forward your request to matthew@acea.com.au Matthew King

AUTUMN 09 National Outlook

ECONOMICS & TAXATION

MORTIMER REVIEW TRIGGERS GOVERNMENT EVALUATION OF SECTION 23AF - TAX RELIEF FOR AUSTRALIANS WORKING OVERSEAS ON APPROVED PROJECTS What is Section 23AF? Section 23AF (S23AF) of the Income Tax Assessment Act 1936 (introduced in 1980) provides an exemption from Australian tax for the earnings of Australian individuals working overseas for more than 90 days on approved projects. The clause assists Australian companies to win contracts against international bids and ensures that Australian consultants and contractors are not disadvantaged compared to our foreign competitors. Applications at the proposal stage are made directly to the Australian Trade Commission (Austrade) seeking “Approved Project Status”. Approved project status can only be granted if the Minister of Trade or approved delegate is satisfied that the project is in the national interest. An “eligible project” is: a project for the design, supply or installation of any equipment or facilities; a project for the construction of works; a project for the development of an urban area or a regional area; or a project consisting of giving advice or assistance relating to the management or administration of a Government department or public utility. National interest (Ministers criteria) Examples of some of the guidelines used to determine if a project is in the national interest are as follows: employment of Australians on the project will bring tangible economic benefits to Australia; association of Australia with the project would be of benefit in terms of goodwill, prestige and would not run counter to Australia’s political or trade relations objectives; existence of foreign competition for the project and the granting of the exemption would facilitate Australia winning a proposal/bid; and there will be a net foreign exchange benefit.

National Outlook AUTUMN 09

Are S23AF exemptions automatically granted? The exemption applies only to projects in countries where the income tax is not levied on employment income or where income tax is not levied on foreign workers income because the project is funded by international development agencies. Currently, more than half the approved projects are commercial projects in the tax free gulf states of the Middle East. The remainder relate to projects funded by international development agencies such as the World Bank, the Asian Development Bank and the United Nations Development Program (AusAID projects are not eligible). Section 23AG of the Act relates to tax relief for Australians working overseas, however it has more general coverage. It provides an exemption from Australian income tax for foreign earnings derived by Australian individuals working overseas in certain circumstances. Such income would otherwise be subject to Australian tax at the individual’s marginal tax rate with a credit provide for foreign tax. Implication of the Mortimer Review David Mortimer was commissioned by Austrade to undertake a detailed review of Australia’s Export Programs and Policies. Due consideration was given to assessing the effectiveness of the S23AF/S23AG provisions in winning international tenders. “Whilst these provisions are likely to contribute to Australian companies securing overseas projects and to the employment of Australian workers on overseas projects, the review concluded that it is difficult to determine the full extent to which the provisions have contributed to the successes or whether there are more effective mechanisms for supporting the export of Australian goods and services.” Mortimer Review Recommendation 8.7 Austrade have taken this seriously. The Commission has appointed Price Waterhouse Coopers (PWC) to undertake a review of Section 23AF and its effectiveness in promoting trade.

Summary of Mortimer Review Recommendation 8.7 The Australian Taxation Office has advised that approximately 24,000 individuals currently claim an exemption under both S23AG/S23AF. In 2005/06 this amounted to $1.2 billion in income, although it should be noted that this figure could not be accurately disaggregated between S23AF/AG. Combined revenue cost estimates for sections S23AF and S23AG were $450 million in 2005/06 increasing to $520 million in 2008/09. In 2007, 165 project applications from 32 Australian companies were approved, with 41 of these applications converting to successful projects worth approximately $800 million. The number of Australian individuals benefiting is estimated to be about 2000 a year, and the average number of individuals engaged per project is estimated at 5-15. According to the Mortimer Review report, engineers account for approximately 85 per cent of the individuals who claim the S23AF exemption. Project Managers, teachers, professors, medical professionals, architects and designers account for the remainder. Individuals who claim under S23AG are more diverse in nature. Effectiveness Survey PWC will by now have completed the process of ascertaining input from a cross-section of the companies who are likely to be impacted by an alteration to S23AF. A letter was distributed to all companies who applied for the S23AF exemption in the 2007/08 financial year, advising the means by which these firms may input into the review. The approach from PWC was two-fold, incorporating an interview with a set list of questions, as well as opportunity to address specific terms of reference and lodge a written submission. The ACEA welcomed the opportunity to lodge a written submission with PWC, who will by now have lodged a report on their findings to the Ministers Delegate. It was due for submission by January 31, 2009. Matthew King

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We have implemented several procedures based on the information provided on the course and believe these will have a strong impact on our safety outcomes Senior Health & Safety Auditor, URS Australia

Develop strong Safety in Design credentials to ensure compliancy and raise your competitive edge Know your obligations and responsibilities under the OHS Act Gain knowledge and experience in hazard identification and risk management techniques Devise and plan workplace procedures which demonstrate that OHS design issues have been addressed Incorporate Safety in Design documentation and procedures into your Safe Management Systems.

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skills & resources

THE FUTURE FOR SKILLS IS LOOKING BRIGHTER, BUT NOT BLINDING AN ECONOMIC SLOWDOWN HAS EASED SOME OF THE PRESSURE ON SKILLS SHORTAGES – FOR NOW. THE ACEA HOLDS THE VIEW THAT AUSTRALIAN BUSINESS MUSTN’T FORGET THAT THE ECONOMY WILL RECOVER, THE INFRASTRUCTURE SPEND THAT THE FEDERAL GOVERNMENT HAS ANNOUNCED TO STIMULATE THE ECONOMY WILL BE RELEASED AND THE ACEA’S MEMBER FIRMS ARE AN INTEGRAL COMPONENT OF HELPING THE NATION GROW AND MOVE FORWARD TO MORE CERTAIN TIMES. The feedback from the ACEA’s member firms has been mixed with regards to the economic slowdown and its subsequent impact on projects and other work. Some firms reporting business as usual, some advising of a significant slowdown and others contend they still have ongoing work for at least the next 1218 months but are not recruiting as rigorously as last year. For those firms who are experiencing a significant slump, there is a window of opportunity now to review processes, people performance, training and retention strategies for the future and corporate social responsibility or operational sustainability strategies more rigorously. The ACEA National Office is on hand for members wanting to discuss any of the above. For firms who are noticing a slow down but still have active projects underway, there are similar opportunities to do all those things you never had time to do before. The ACEA have been busy consulting with our members and meeting with Members of Parliament, Ministers and various Departments to ensure we are conveying the correct messages to government and asking for assistance and change where necessary to keep the skills policy work that is in the pipeline active and moving forward. The ACEA have conveyed to the government through various meetings throughout the first two months of 2009 that the skills shortage has eased, but not completely. The ACEA have conveyed on behalf of the membership that there will still be specialist skills that are uncommon both domestically and overseas and required by member firms for various projects. That the number of Australian engineers graduating from our universities has remained almost stagnant over the past 12 or so years and this is still of great concern and must be addressed. That a large number of engineers have reached or will soon be reaching retirement age and this will translate into not only a reduction of the number of engineers in the industry but also the exodus of highly experienced skills sets and expertise in a range of disciplines.

National Outlook AUTUMN 09

Having conveyed this to the Immigration Ministers’ Department, the ACEA feel confident that when the influx of public funding for infrastructure is disbursed the ACEA’s member firms will be ready to meet the challenge. As a part of helping us meet upcoming challenges the Department of Immigration and Citizenship (DIAC) are introducing new measures (some already enacted) in the skilled migration area, designed primarily to strengthen the integrity of the scheme. In principle the ACEA supports the government’s intentions to strengthen the integrity of the 457 visa scheme, particularly for ASCO 4+ occupations. No worker permanent or temporary should be mistreated or taken advantage of, and Australian jobs should not be undercut by cheaper temporary overseas labour – these are broadly the principles the Government acknowledges as underpinning the integrity of the scheme. The ACEA, employers of ASCO 1-3 occupations are pleased that the Minister will continue to list a number of engineering occupations on the Government’s Critical Skills List, which will allow for priority processing.

The ACEA will also continue to retain the services of our industry outreach officer program, a huge benefit to members when running into problems with skilled migration processes and rules. The Minister’s Department have also indicated that the draft sponsorship obligations for the 457 visa scheme will be released in early to mid March 2009. The ACEA will be preparing a response to ensure members have access to a scheme that is flexible, not disproportionately onerous for employers and meets the needs of the contemporary industry. Caroline Ostrowski

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skills & resources

THE HIGHER EDUCATION REVIEW – AN OPPORTUNITY TO INCREASE AUSTRALIA’S ENGINEERING RESOURCE? THE NUMBER OF AUSTRALIAN TERTIARY STUDENTS WHO GRADUATE AS ENGINEERS HAS FOR SOME 12 YEARS NOW REMAINED STAGNANT. IN 1994, 6512 AUSTRALIAN ENGINEERS GRADUATED FROM ONE OF AUSTRALIA’S 38 UNIVERSITIES. IN 2006 THAT NUMBER HAD ONLY INCREASED TO 7984 GRADUATES*. Although Australia in total currently graduates some 12,000 engineers per year, the remainder of these are international students and most return to their country of origin once qualified. Australia must invest in engineering education and employ a new set of strategies for the higher education sector to position our nation into the future. The Higher Education Review Report, released late last year makes some interesting recommendations as to how this can be achieved.

Another key finding from the review outlined that the Department should develop a set of benchmarks which provide comparable data with the United Kingdom, United States, Canada and other countries so that Australia’s performance can be regularly compared with that of other developed nations. This has the potential to enormously impact the monitoring and improvement of the quality of engineering graduates, and the ACEA fully supports that this process be implemented.

The Government received the final report of the Bradley Review of Higher Education (the Review) from Emeritus Professor Denise Bradley on 17 December 2008, inclusive of 46 recommendations and a series of findings for reforming Australia’s tertiary education system. The Government is currently considering the recommendations and findings and is set to provide a response in early March 2009. The ACEA provided our views and recommendations to the Review, and below are a number of proposed recommendations and findings which are of particular interest to the ACEA’s members.

One ambitious finding recommends that higher education providers should be required to provide annual data on student numbers and characteristics as a condition of their accreditation (another recommendation suggests all universities should be accredited in order to use the title ‘university’). If information pertaining students numbers and how students are disbursed across the years of study could be accessed by industry, it would be of enormous benefit to the ACEA in considering our strategies regarding higher education policy.

One of the most pressing recommendations that the ACEA conveyed to the Review was that further work should be undertaken on the reasons why students fail to complete their studies. This recommendation has been presented as finding number one within the Review. The ACEA have long struggled to understand the complexities of drop-out rates in engineering, and have previously made attempts at reaching a consensus with the Department of Education (the Department) on what percentage the drop out rate of engineering students at university equates to. At first glance it appears at around 50% (over a 12 year period), but further investigation into students movements and average study times completed by both the Department and the ACEA reveals this may not be the case. The ACEA are extremely pleased to begin working on this issue again with the Department, as formulating strategies for increased retention without knowing exactly how severe the problem is has been somewhat trying.

National Outlook AUTUMN 09

A number of proposals for increased funding for universities and students have been proposed, as well as infrastructure, all of which, as is usually the case with increased funding, have the opportunity to create real benefit for students, teachers and the Australian economy. Better articulation of skills and a better credit transfer process is another recommendation which the ACEA discussed with the review team. The ACEA are particularly pleased with the finding that outlined vocational education

and training and higher education providers should continue to enhance pathways for students through the development and implementation of common terminology and graded assessment in the upper levels of vocational education and training. Overall the review is extremely thorough and canvasses a myriad of issues all pertaining to Australia’s higher education sector. The subsequent recommendations and findings from the Report are also detailed and most, if accepted will have the potential to increase the number and the quality of Australian engineering graduates. ACEA members wanting to know more about the recommendations and findings of the review can access the report via this link: http://www.deewr.gov.au/ HigherEducation/Review/Pages/Review ofAustralianHigherEducationReport. aspx alternatively please contact Caroline Ostrowski at the ACEA National Office. Caroline Ostrowski *Data is provided by DEEWR to Engineers Australia, and can be found in The Engineering Profession - A Statistical Overview 2008 Report produced by Engineers Australia.

strategic leadership and service excellence:

driving engineering business success PRESENTED BY THE ASSOCIATION OF CONSULTING ENGINEERS AUSTRALIA

A four-day residential management course focused on business excellence for engineers and other technical professionals COURSE DIRECTOR Professor Samson holds degrees in engineering and management. He has worked as an engineer in the chemical industry and as a professor of management at the University of Melbourne for over a decade. He has wide, international experience in a range of primary, manufacturing and service industries, in which he has been a researcher, consultant and director. He has written and edited many books including Management for Engineers, now out in its third edition. FEATURING Business management, systematic innovation, professional service and value creation, leadership and new key topics, overall business strategy, operational and service excellence, marketing and business development, decision-making skills and tools, financial/performance management. ENROLMENT Bookings or enquiries can be made in the first instance via phone or email to Danny Samson, Ph: 03 8344 5344 Email: d.samson@unimelb.edu.au

OVERVIEW The Program is focused around an integrated frameworld of what makes the world’s best companies so, how they got there, and what can be learned, adapted and applied from them. STRATEGY and MARKETING Positioning in a market: Strategy as fit with business environment and capabilities. Client management

OPERATING PRACTICES ‘Production’ and various support activities: driving efficiency and service quality

BEHAVIOUR and CULTURE Performance orientated for the business

MEASURES of PERFORMANCE Operating, financial and overall business performance

REWARDS and RECOGNITION Pay, recognition, promotion, motivation of staff

“The challenge is to be as professional in leading and managing your business as in the technical aspects of the engineersing” PROFESSOR DANNY SAMSON

WHERE The University of Melbourne’s Business School, Carlton, Victoria, Australia WHEN 22 - 25 March 2009 6 - 9 September 2009 COST All inclusive fee $3850 +GST, includes residence costs, meals and full program

OHS Neil Bassett is a Policy Officer for the Association of Consulting Engineers Australia. Neil represents the members interests in the area of Occupational Health and Safety and Infracstructure. Neil can be reached at neil@acea.com.au

OHS - THE NOTION OF ‘REASONABLY PRACTICABLE’ THE NOTION OF ‘REASONABLY PRACTICABLE’ AS AN EFFECTIVE QUALIFIER TO MEET A DUTY OF CARE IN OHS LEGISLATION IS CURRENTLY A CONTESTED ARGUMENT FOR A NUMBER OF KEY OHS STAKEHOLDERS. THIS IS DUE TO THE NATIONAL REVIEW INTO MODEL OHS LAWS AND THE DEVELOPMENT OF A NATIONALLY CONSISTENT OHS LEGISLATION THAT IS BEING CURRENTLY UNDERWAY BY THE FEDERAL, STATE AND TERRITORY GOVERNMENTS. On one-side of the national debate stakeholders, namely unions, argue that an employer has an absolute duty of care to provide a safe working environment for its employees. They suggest that when an accident occurs in the workplace the onus is then upon the employer to prove that is was not ‘reasonably practicable’ for them to eliminate or reduce the hazard and risk. On the other-side of the national debate stakeholders, most notably employers, suggest that a Model OHS Act should ensure health and safety in the workplace means eliminating risks to health and safety so far as is “reasonably practicable”, and if it is not reasonably practicable to eliminate, to reduce the risks to the lowest level that is “reasonably practicable”. In other words, an employer must provide a safe workplace provided it’s ‘reasonably practicable to do so.

The ACEA recommends that in relation to what constitutes reasonably practicable, regard should be given to: the likelihood of the hazard occurring; the degree of harm that would result if the risk eventuated; what the person concerned knows, or ought reasonably to know, about any ways of eliminating or reducing the risk; the availability and suitability of ways to eliminate or reduce the risk; and the cost of eliminating or reducing the risk.

The ACEA will keep you informed on the developments surrounding the notion of ‘reasonably practicable’ and its inclusion in a Model OHS Act as either a qualifier to meet a duty or as a defence. For more information on the National Review into Model OHS Laws please visit the ACEA website at: www.acea.com.au/OHS Neil Bassett

ONLINE OHS CONTRACTOR MANAGEMENT SYSTEM LAUNCHED

In what looks like good outcome for employers and ACEA members at this stage, calls for the qualifier ‘reasonably practicable’ to be promoted as an effective qualifier of duty of care in a Model OHS Act has been supported by the National Review Panel in their first report to the Workplace Relations Ministers’ Council (WRMC) back in November 2008.

IN RECENT MONTHS AN AUSTRALIAN OCCUPATIONAL HEALTH AND SAFETY RISK MANAGEMENT FIRM HAS LAUNCHED A WEB BASED SYSTEM THAT CAN BE USED BY POTENTIAL CLIENTS OF CONTRACTORS TO ASSESS A CONTRACTOR’S OHS CAPABILITIES. THE ONLINE SYSTEM KNOWN AS CM3, DEVELOPED BY NOEL ARNOLD & ASSOCIATES, HAS BEEN DESIGNED TO ASSIST ORGANISATIONS MEET THEIR LEGISLATIVE DUTY OF CARE TO ENSURE CONTRACTORS THEY ENGAGE AND MANAGE HAVE ADEQUATE PROCESSES TO SAFELY CONDUCT WORK.

While it’s noted that in most jurisdictions (with the exception of NSW & Qld) the primary qualification to meet an OHS duty of care is already based on the concept of ‘reasonably practicable’, it is a positive sign that a proposed Model OHS Act may adopt the approach already supported by most jurisdictions, employers and the ACEA.

In short, Cm3 enables organisations to gain an understanding of a contractor’s OHS capability prior to commencement of works. Importantly, this allows organisations to select contractors who can demonstrate their commitment to occupational health and safety. Cm3 is a four stage process that includes: Stage One: Contractors complete an Activity Classification which enables Cm3 auditors to have an understanding of the type of work a contractor conducts. Stage Two: Contractors place their Trade Licenses or Certificates, Public Liability and Worker’s Compensation Insurances and other relevant documents on Cm3. Stage Three: Contractors complete an online OHS Assessment including the provision of documentation to support their responses.

National Outlook AUTUMN 09

Stage Four: Cm3 auditors review the Contractor’s online OHS Assessment. Once all stages have been completed the contractor is prequalified to conduct the work described in their Stage One Activity Classification and will be provided with a Cm3 prequalification number and certificate. The online portal has many benefits for potential clients of contractors by assuring: that the contractors they may employ have a suitable OHS management system in place that has been reviewed by qualified OHS specialists; the ability to source a number of Cm3 prequalified contractors throughout Australia; and the ability to review the currency of a contractor’s Trade Licenses, Certificates and Insurances. If you would like more information on Cm3 please visit: www.cm3.com.au or contact Tricia Moritz on 1300 733 263.

OHS

THE NATIONAL REVIEW INTO MODEL OHS LAWS COMPLETED AT THE WORKPLACE RELATIONS MINISTERS’ COUNCIL (WRMC) MEETING ON 12 FEBRUARY 2009, MINISTERS NOTED THE SECOND AND FINAL REPORT OF THE NATIONAL REVIEW INTO MODEL OHS LAWS. THE SECOND REPORT CONTAINS RECOMMENDATIONS ON THE REMAINING SPECIFIC AREAS WHICH WERE NOT COVERED IN THE REVIEW PANEL’S FIRST REPORT RELEASED IN NOV 2008. The National Review Panel were tasked with assessing and reviewing OHS legislation in each State, Territory and Commonwealth jurisdiction with the intention of making recommendations on the optimal structure and content of a model OHS Act that is capable of being adopted in all jurisdictions. Please find a brief summary of the reports recommendations for a Model OHS Act and the main proposals which could impact on ACEA member firms. A primary or general duty of care should be imposed on the person conducting a business or undertaking, whether or not it is conducted for profit. The duty holders include employers; self-employed people; the Crown in any capacity; and any person in any other capacity. The duties of care should apply in relation to any reasonably foreseeable activity undertaken. Specific duties of care should be imposed on: those with management or control of workplace areas; designers of plant, substances and structures; manufacturers of plant, substances and structures; builders, erectors and installers of structures; suppliers and importers of plant, substances and structures.

The term “reasonably practicable” should be used to qualify the duties of care, except for duties of care of workers and others in the workplace (which should be qualified by reasonable care) and officers of organisations (which should be qualified by due diligence). Reasonably practicable should be promoted as an effective qualifier of duty of care and breaches of duties of care should be criminal offences, with prosecution bearing the criminal standard of proof for all elements of the offence. Fines should be substantially increased, particularly where there was serious harm, or a risk of such harm, to any person (fatality or serious injury), to whom a duty was owed and the duty holder had been reckless or grossly negligent. There should be separate and specific OHS laws for particular hazards and high risk industries. The Model OHS Act should not include a definition of “control” or “risk management”.

A worker(s) should be able to cease work where they have reasonable grounds to believe that to continue to work would expose them or any other person to a serious risk to their health or safety or that of another person, emanating from immediate or imminent exposure to a hazard. A person(s) conducting a business or undertaking should, where reasonably practicable, employ or engage a suitably qualified person to provide advice on health and safety matters. At the regulator’s discretion, a written enforceable undertaking should be used as an alternative to prosecution. There should be a right of entry for union officials for OHS purposes but only an official who is acting in the course of a public office or duty should be able to bring a prosecution for a OHS breach. Codes of practice to be developed through a tripartite process. For more information on the National Review into Model OHS Laws please contact Neil Bassett, OHS Policy Officer at: neil@acea.com.au or tel: 02 9922 4711. Alternatively please visit the ACEA website at: www.acea.com.au/ policy or www.nationalreview.org.au Neil Bassett

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OHS

DOES YOUR RISK ASSESSMENT EXPECT THE UNEXPECTED? A SATISFACTORY RISK ASSESSMENT MUST ANTICIPATE POSSIBLE MISHAPS, AS WELL AS THE POTENTIAL BAD HABITS AND SHORTCOMINGS OF EMPLOYEES. IN THE CASE OF INSPECTOR SIBILANT V ROYAL AUTOMOBILE CLUB (NO 2) [2008] NSWIRCOMM 167 AN EMPLOYEE WAS ELECTROCUTED AND KILLED WHILE PERFORMING MAINTENANCE WORK ON AN AIR CONDITIONING UNIT. The employee was not a licensed electrician but had responded to a job advertisement that specifically highlighted electrical experience. When he had commenced work as a maintenance manager, the employer had advised that he was not to perform any electrical work, although this direction was not reinforced or expressed in a written form or policy.

may often be of this peripheral character that is, not connected to an essential aspect of a specified task. This did not make the risks any less serious. In this case, it was difficult to clearly demarcate “electrical work” from the other tasks the employee performed, and indeed he had been recruited precisely because he had electrical experience.

Two years later, the employee was electrocuted after being asked to adjust a thermostat. While attending to the task the employee apparently went further and removed certain cover panels, exposing live electrical wires. Due to the tragic circumstances, the court was not able to establish exactly what further work the employee was attempting to perform.

Australian law firm Corrs Chambers Westgarth believes there are valuable lessons for ACEA members resulting from this case. They suggest that the OHS regime is designed to protect against human errors including inadvertence, inattention, haste and even foolish disregard of personal safety as well as the foreseeable technical risks in an industry. They also believe that the decision by the courts indicates that risk assessments must look at the overall context for performing work, not necessarily an incomplete picture based on the specific characteristics of different classes of employees.

The NSW Industrial Court held that the employer’s risk assessment process needed to counteract the possibility that energised points could be knocked or deliberately removed while adjusting the thermostat. The court commented that dangers to health and safety

This decision reinforced an earlier judicial comment that has become a common refrain of decisions in this area. A duty to create a system of effective risk management “is not [discharged] merely by responsive actions to a risk which has been demonstrated to exist. There must be a system of searching for and identifying all possible risks and instituting safety measures to guard against those risks”. Corrs Chambers Westgarth is one of Australia’s leading law firms and advise corporate, commercial, financial institutions and government clients across a range of practice areas. For more information please visit: www.corrs.com.au Neil Bassett

COURTS GET TOUGHER ON WORK DEATHS A RECENT STUDY OF COURT SENTENCES HANDED DOWN IN VICTORIA INDICATES THAT LEGISLATION INTRODUCED OVER FOUR YEARS AGO IS BRINGING ABOUT A SIGNIFICANT INCREASE IN PENALTIES FOR WORKPLACE FATALITIES. Cameron Hannebery and Kathryn Bion, of law firm Deacons, say several sentences handed down in the past 12 months demonstrate a deliberate and significant increase in fines imposed for breaches of the Occupational Health and Safety Act where a fatality is involved. The current OHS Act was introduced by the state government in 2004, and one of its major changes was a substantial increase in penalties for safety breaches. The maximum penalty under the act is now over $900,000 compared to a maximum of $250,000 under the previous legislation dating back to 1985. “As prosecutions for breaches of the new act are only now reaching their conclusion, a pattern has emerged illustrating a willingness by the judiciary to impose significant fines under the new penalty 48

National Outlook AUTUMN 09

regime, particularly for those breaches resulting in fatalities,” Hannebery and Bion say.

instructions to employees and their exposure to an obvious and foreseeable hazard.

The first employer sentenced for an offence under the new act was Star Track Express, fined $200,000 in the Victorian County Court for failing to maintain a safe and healthy working environment. The charge related to the death of a forklift operator. The company had hired a high-mast forklift, and the operator was killed when the mast struck an overhead beam and the machine rolled on to its side. Hannebery and Bion say the judge in sentencing referred to a number of aggravating factors: an inadequate response to a similar event only a day earlier, failure to enforce the wearing of seatbelts and failure to enforce restrictions on where the forklift was operated.

In the highest penalty referred to in the study, Fosters Australia was fined a total of $1.125 million – $562,000 on each of two counts – over the death of an employee who was trapped in a heavy steel door at Melbourne’s Abbotsford brewery. The judge in the County Court noted that a similar crushing incident had occurred at the brewery in 2002, four years before the fatality. The company had responded by installing guarding on the machine where the original incident occurred, but took no action on the other machine. Giving reasons for the sentencing, Judge Jane Campton indicated the total fine would have been $1.5 million if the company had not pleaded guilty and that the primary consideration when deciding sentences in such cases was “general deterrence”.

In the County Court, Camden Neon was fined $300,000 after pleading guilty to a charge relating to the death of an employee who was electrocuted while replacing floodlight globes at a car yard. The judge in the case identified aggravating features including “minimal, if any”

This article has been reproduced from Construction Industry News written by John Feary in January 2009. Neil Bassett

OHS

CAN A SUBCONTRACTOR BE RESPONSIBLE FOR CONTRACTOR SAFETY? IN A RECENT MAGISTRATE COURT RULING IN SOUTH AUSTRALIA (HILLMAN V WATSON AND SONS CONSTRUCTIONS PTY LTD [2008] SAI RC 76A) A SUBCONTRACTOR WAS FOUND TO BE RESPONSIBLE FOR THEIR WORKERS SAFETY EVEN IF THE CONTRACTOR WHO ENGAGED THE SUBCONTRACTOR HAS EQUAL OR GREATER CONTROL OVER THE WORKERS’ TASKS. In 2006, a carpenter working for a carpentry firm suffered serious injuries after falling from an unguarded edge of a second floor building. The firm was subcontracted to provide carpentry services to a builder/principal contractor. The subcontractor pleaded not guilty to a charge under s19(1) of the SA OHS&W Act. Whilst the carpenter was an employee of the subcontractor, the central issue at trial was whether the subcontractor was in control of the system of work when he was injured, and if so, whether it was reasonably practicable for the subcontractor to adopt measures to eliminate or reduce the risk of injury. The issue

was compounded by the fact that builders site manager was a director of the subcontractor. The Court firstly noted that the subcontractor’s director’s mere awareness of components of a system of work did not amount to control for the purpose of the Act. However, evidence was given that the subcontractor director gave regular instructions to the worker, made representations as to safety measures on and around the actual building and had the necessary level of expertise to supervise the system of work in relation to the specific task performed by the worker.

Industrial Magistrate Lieschke found that the subcontractor ”managed or organised certain aspects of the worker’s system and in particular the system of working on an unguarded platform.” Whilst the subcontractor submitted that the builder had an equal or greater control of the worker’s safety, Industrial Magistrate Lieschke would not take that into account as the Act clearly states more than one entity could exercise control over an OHS matter. Ultimately, the subcontractor was found guilty of breaching s19(1) of the Act. Neil Bassett

OHS NATIONAL & STATE NEWS National The National Review Panel completes their second and final report on the optimal structure of a Model OHS Act which will be presented to all Workplace Relations Ministers in February 2009. After a number of disputes between the Government and the Senate regarding Safe Work Australia, Deputy Prime Minister Julia Gillard set aside the Bill in the upper house for further debate. The Australian Safety & Compensation Council (ASCC) met for the last time to finalise arrangements for the transition to Safe Work Australia. OHS rights of entry restrictions were retained by the Federal Government in new IR laws under Fair Work Australia. The High Court ruled that the geographical proximity and similarities in legal systems and legislation meant Victoria was potentially an appropriate forum to hear a damages case governed by New Zealand law. There were 150 notified work-related fatalities in the 2007/08 reporting year, according to the ASCC's annual Notified Fatalities Statistical Report July 2007 to June 2008. The Comcare scheme reported a 27 per cent decrease in workplace injuries in its 2007-2008 annual report.

NSW NSW Parliament passes new workers' compensation laws that have introduced alternative ways of calculating WorkCover premiums and death benefits. WorkCover NSW now recognises the South Australian "white card" as proof of construction induction training for workers employed in the construction industry in NSW. The Department of Immigration and Citizenship and WorkCover NSW have signed an agreement (Memorandum of Understanding) to better share information on temporary foreign skilled workers in Australia. Qld Qld passed new laws giving workplace OHS representatives stronger powers under the State's safety laws. SA SA unfunded liability reached $984m, despite its improved claims performance, according to its 2007/08 annual report.

Tas Tas WorkCover Board has adopted the National Audit Tool (NAT) as part of its permit conditions for self insurers. All new self-insurer will be assessed against the NAT from 30 September 2009. Vic Vic Government introduces changes to its OHS Act which further protects employees who actively play a role in OHS and raise safety concerns to employers. The first Vic company director fined under the Vic OHS Act 2004 also receives the highest OHS penalty ever handed down to an individual for a safety offence. WA WorkCover WA releases its State's workers' compensation claim statistics from 2003 to 2007 which shows that the frequency rate of lost-time injury claims per million hours worked had fallen 12.1 per cent since 2003. *All information researched and obtained from OHS Alerts

AUTUMN 09 National Outlook

National Outlook AUTUMN 09

Terraçade:

Putting a New Face on Australian Building For centuries the humble brick has maintained an enviable record of durability and colourfastness, with minimal upkeep and without the need for expensive finishes. A revolutionary façade material, designed and developed in Australia, offers these same qualities in a curtain wall system that is demonstrating the potential to revolutionise construction from housing to high-rise. It’s called Terraçade – as in “terracotta façade” – and it’s the brainchild of Austral Bricks, Australia’s largest brick manufacturer and a company with a century-plus heritage of innovation and product development.

King George Square Station

How does Terraçade work? The basis of the system is a large-format (300 x 600 mm) terracotta “tile”. These tiles are captured on specially-designed rails attached to a loadbearing wall which can be masonry, concrete or a framed structure. (A vapour control membrane may be required.) The result is an effective and attractive rain screen on new or exiting buildings to a remarkable 40 storeys. The airspace between the Terraçade cladding and the wall structure does double duty, draining moisture that may penetrate the cladding and acting as a “heat chimney” to naturally ventilate the cavity and minimise the passage of heat energy and condensation.

Put to the test The Terraçade system has been fully tested to AS/NZS 4284:2008 Testing of Building Facades. The Terraçade XP system withstood static and dynamic water penetration up to a design wind load of 2.2 kPa.

Royal North Shore Hospital

Additional testing has been carried out at the Cyclone Testing Station to AS4040.3:1992. The test report shows that the XP system is sufficient to support an equivalent strength limit state wind suction pressure of 12.00 kPa in non-cyclone regions and 9.20 kPa in cyclone regions.

Sustainable – now and for life Terraçade tiles are made from some of the earth’s most abundant minerals. The system is an ideal cladding in an energyefficient design, it is low maintenance and colourfast for life, and does not require expensive (and ongoing) finishes. The metal sub-frames components are fully recyclable and the tiles can be reused without processing or remanufacture.

In the field: King George Square Station Terraçade was chosen for Brisbane’s newest underground busway station, but not before being subjected to a battery of extreme tests. Because of the site’s vulnerability, the Terraçade test tiles were given extra protection with Dry-Treat (www. drytreat.com), an Australian-developed impregnating sealer. Test panels were smeared with axle grease and paint (spray and brush) and left to weather for a week. In front of a sceptical audience from the Inner Northern Busway Alliance and Queensland Transport, the tiles were quickly and successfully cleaned using conventional rather than proprietary cleaners.

In the field: Royal North Shore Hospital Sydney’s new Kolling Research & Education Building is a 12-storey structure on a prominent site overlooking the city. The eastern and western elevations are clad in Terraçade to the full height, creating a dramatic “bookending.” Nick Demetriou, site manager for installers Overall Façade Systems, was impressed by the Terraçade technical literature. “It’s quite detailed and very descriptive, it shows you how to trim and terminate and cut different elements and make it all work.” The setout is critical but Nick found attaching the tiles to be fast and easy. “I think the system is great,” he says.

Want to know more about Terraçade? For test reports, case studies and other information AUTUMN go to www.terracade.com.au, 09 National Outlook 51 or call 1300 881 712 (within Australia) or 0800 AUSTRAL (New Zealand).

WE HOPE YOU ENJOY YOUR COPY OF NATIONAL OUTLOOK MAGAZINE National Outlook is ACEA’s quarterly print publication. Subject areas covered in National Outlook include a broad spectrum of industry issues relevant to the Consulting Engineering and related service industries and ACEA activities and services

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National Outlook AUTUMN 09

infrastructure Neil Bassett is a Policy Officer for the Association of Consulting Engineers Australia. Neil represents the members interests in the area of Occupational Health and Safety and Infracstructure. Neil can be reached at neil@acea.com.au

INFRASTRUCTURE AUSTRALIA’S REPORT TO COAG The ACEA has welcomed Infrastructure Australia’s Report to the Council of Australian Governments which proposes what infrastructure projects should be prioritised and their role in ensuring economic productivity and growth. The Report is a result of the information received from 600 submissions collected from the public, industry and governments, through the Discussion Paper: Australia’s Future Infrastructure Requirements, which stakeholders were asked to comment upon the problems and solutions to Australia’s infrastructure needs. Infrastructure Australia’s analysis concluded that future public and private investment needs to be directed towards: developing a more competitive broadband system; extending the national energy grids so there’s greater flexibility and competition in our power and gas markets; improving port productivity and associated land transport links; lifting the amount of freight shifted by rail; preparing for the impact of climate change on water supplies; expanding public transport services within cities; and improving services to indigenous communities. The Report also identified five nationwide challenges to infrastructure: to deliver better governance; to create competitive markets, one economy with one set of rules; the better use of existing infrastructure; and climate change. The ACEA suggests that before any major infrastructure projects are given the green light, that it’s important to show how those projects will help to increase national economic productivity and growth infrastructure. However, the ACEA believes that the Report is an essential step in the right direction for the future needs of securing and developing Australia’s infrastructure, as well promoting a national approach to infrastructure decision making. Infrastructure Australia was established under the Infrastructure Australia Act 2008, with a specific mandate to provide independent expert advice to governments on policy, regulation and investment options to improve Australia’s national transport, water, energy and communications infrastructure.

ACEA INFRASTRUCTURE ROUNDTABLE TO BE ESTABLISHED THE ACEA IS IN THE PROCESS OF ESTABLISHING A NEW ROUNDTABLE WITH A FOCUS ON INFRASTRUCTURE. Given the key role that ACEA membership plays in delivering Australia’s infrastructure, the Roundtable’s key objectives will be to: Provide leadership and guidance to all levels of government and industry on the national approach to infrastructure; Provide a forum for members to drive and contribute to the national infrastructure debate; Develop relations with all levels of government and the private sector to support a collaborative approach to major infrastructure projects; and Be recognised by policy makers, including Infrastructure Australia, as a key industry resource to assist in identifying areas for reform, including the planning, funding and delivery of infrastructure. The Federal Government recognises the ACEA as a key stakeholder and the ACEA has received a request from the Senate to participate in their inquiry into the investment of Commonwealth and State funds in public passenger transport infrastructure and services. The Roundtable will play a key role establishing the ACEA’s position on such matters. The Roundtable will aim to meet approximately five times a year either through member face-to-face meetings or through teleconferencing. If you would like further information on the Infrastructure Roundtable please contact Neil Bassett, Policy Officer Tel: 02 9922 4711 or email: neil@acea.com.au Neil Bassett

ECONOMIC SLOWDOWN REDUCES INFRASTRUCTURE SPEND A REPORTED $40 BILLION WORTH OF INFRASTRUCTURE PROJECTS HAVE EITHER BEEN CANCELLED, DELAYED OR DOWNGRADED AS A RESULT OF THE ECONOMIC DOWNTURN IN AUSTRALIA IN THE LAST SIX MONTHS, ACCORDING TO A RECENTLY RELEASED REPORT (ACCESS ECONOMICS 2 FEBRUARY). THE REPORT SUGGESTS THAT THIS IS BEING CAUSED BECAUSE BUSINESSES ARE REPORTING LOWER PROFITS AND THE SEVERE CREDIT CONDITIONS ARE REDUCING THEIR CONFIDENCE AND ABILITY TO SPEND ON INFRASTRUCTURE PROJECTS. The Report estimated total value of works under consideration, committed to or under way fell by around 6 per cent in the December 2008 quarter to around $607 billion, and that 17 major projects valued at around $35 billion had been abandoned. The ACEA believes that the slowdown in infrastructure spending and the postponement of infrastructure projects due to the economic crisis is a concern. However, there are still some good signs and opportunities for consulting engineering firms going forward with the Federal government’s commitment to infrastructure spending |($11 billion Education Infrastructure Fund, $10 billion Health Infrastructure Fund, & $20 billion Building Infrastructure Fund) all of which will help cushion the effects of the slowing economy. The ACEA recommends that it’s critical that all levels of government spending on infrastructure is promoted, implemented, and fast-tracked so as to help drive productivity and employment growth in this critical economic period. While the downturn and delay in some infrastructure projects is worrying, the ACEA believes the Federal Government’s commitment to infrastructure spending will present valuable opportunities for members that can result in long-term prospects.

If you would like to view Infrastructure Australia’s Report to the Council of Australian Governments please visit: www.infrastructureaustralia.gov.au Neil Bassett AUTUMN 09 National Outlook

ASK A LAWYER - NEW COLUMN

ASK A LAWYER

Question: I am Builder who performed services for a client, who was the headcontractor on a home building project. Whilst my client had a contract with the owner, I performed all of the building works. My client has now subsequently gone into liquidation and the liquidators have advised that the creditors are unlikely to recover any money. Whilst I had a contract with my client, I also performed works outside this contract at the request of the owner. All of the additional works have been performed in full, however the request by the owner was oral and not in writing. I advised my client the further works requested by the owner, however no payment claim was ever made by my client for the works I performed due to the timing between completion of the additional work and discovering my client was going into liquidation. I have now issued an invoice for payment of the works I performed and gave it to the owner directly. The owner rejected this invoice and now claims that all work performed by me formed part of the contract I had with my client and not them directly. The owner has now appointed another Builder to complete the works, which originally fell within my contract with the client. Will I be entitled to restitution from the owner for my outstanding monies since they have accepted the work performed by me and not paid for it? And can I recover the money from the owner to which I am owed from my client? - Anonymous Answer: Restitution is a remedy afforded to a party where, despite there being no enforceable contract (through frustration, avoided or unenforceable) a party may still be entitled to enforce payment against another. This will be so where it can be said that it is just and fair to recover money in cases where one person has obtained a benefit at another person’s expense.

Question: Can the owner by accepting and receiving the benefit be enforced to make restitution to you? Answer: If you can provide evidence which goes to show that you had direct dealings with the owner, or can point to a direct request by the owners for you to perform the work your chances of recovery under the principles of restitution increases. This is so because there is no reason why you should be precluded from your common law right to bring proceedings to recover fair and reasonable remuneration for work which has actually been done and accepted by the owner. Question: Can you claim restitution from the owner for building work carried out under your contract with your client? Answer: In an ordinary building case, a subcontractor does not have a restitutionary claim against a property owner. This would be so where the work you performed at the site was a direct result of the contract you had with your client and not the owner. Regardless of whether the owners “accepted”, any work that you did or received a “benefit” you do not have an enforceable contract with the owner. Courts are very hesitant to impose equitable remedies where there are enforceable contract rights in existence (i.e.: contract between the owner and your client) or where legislation provided for recovery by the subcontractor (see: Security of Payment legislation). A court considers that to impose an obligation on the owners to pay you would constitute a radical alteration of the bargains the parties struck and of the rights and obligations, which each party assumed. For further information please contact our Solicitor Director, Shaye Chapman email: shaye@belegal.com.au. If you would like to ask a lawyer a question, please send your questions to lawyer@ belegal.com.au

The material provided is for general informational purposes only, and is not intended to constitute, and should not be construed as, legal advice on any subject matter. No lawyer--client relationship was/ or is formed. Therefore, you should not consider the material to be an invitation to a client relationship and should not rely on the material provided herein as legal advice on any subject matter for any purpose, and should always seek the legal advice of competent legal counsel. All questions provided to us in this column are treated as confidential and fall within the terms of our Privacy Policy, which can be found on our website: www.belegal.com.au

National Outlook AUTUMN 09

An ounce of prevention is worth a pound of cure

Built Environment Legal focuses exclusively on providing legal advice to engineering, architects statutory authorities, subcontractors, project managers, builders and other construction consultants including employers of these services. We recognise that our clients industry is more heavily regulated today than ever before. We are well-versed in the daily challenges faced by members of this industry and also serve the industry by working closely with ACEA. We know our way around and understand how best to guide you past the pitfalls. Our lawyers understand the points that really matter to you.

Consultancy and Building Contracts Contract Administration and Performance Government Contracts and Sub-contracts Insurance Dispute Resolution and Negotiation Occupational Health and Safety Outsourcing Tender and Procurement Risk Management

Our lawyers appreciate the unique aspects of each transaction. We carefully balance legal requirements with a pragmatic approach, devising creative solutions and adding real value to transactions.

Level 6, 50 Clarence Street, Sydney NSW 2000 Phone: 02 8252 6719 Fax: 02 8252 6719 Email: lawyer@belegal.com.au Website: www.belegal.com.au

AUTUMN 09 National Outlook

MARKETING ROUNDUP Frances Lemon is the National Marketing Manager with the Association of Consulting Engineers Australia. Frances is responsible for all marketing activities and events. Frances can be contacted at frances@acea.com.au

NEW PROCEDURE FOR 2009 AWARD SUBMISSIONS THE ACEA AWARDS FOR EXCELLENCE ACKNOWLEDGE THE TALENT, EXPERTISE AND OUTSTANDING ACHIEVEMENTS OVER THE PAST 12 MONTHS. IT’S THE INDUSTRY’S MOST PRESTIGIOUS AWARDS PROGRAM RECOGNISING EXCELLENCE ACHIEVED BY ACEA MEMBER FIRMS. This year, ACEA has created an official award submission template for each of the 17 categories. We have designed a template to promote equality between 56

National Outlook AUTUMN 09

all entries as well as being quicker and easier for you to complete your firm’s entry. Entries forms are due on Friday, 27 March 2009 and the Submissions are due on Monday, 25 May 2009. Please note it is compulsory to submit your entry using the ACEA submissions template. Each of our 12 project category winners will not only receive a tangible Award for Excellence, but valuable PR exposure from the ACEA along with a free press kit of photos and media

release directions that you can use to promote your achievement(s). Building on last year’s success, the 2009 Gala Awards Dinner is set to be bigger, brighter and more exciting than ever. We wish you all the best and we look forward to welcoming you to the Gala Awards Dinner at the Sofitel Grand Brisbane on 4 December 2009 – Don’t forget to save the date! For more details about our Awards for Excellence 2009 visit www.acea.com.au

CONTRACTS FOR CONSULTANTS MASTER CLASS CERTIFICATE

This course has been designed with one purpose in mind – to keep your business safe. It is time to pull those contracts out of the bottom drawer and really have a look at what you’ve signed. Have you inadvertently agreed to unlimited liability? Are there clauses which your insurance won’t respond to? Could you have negotiated better terms and conditions?

Course Dates Darwin:

5 - 7 March

Perth:

7 - 9 May

Brisbane: 14 - 16 May Sydney:

18 - 20 June

The ACEA’s Contracts for Consultants course is fast becoming reputed as essential training for all consultants involved in reviewing and signing off contracts. Participants will gain an in-depth understanding of contract formulation, and how to manage and control contractual rights and obligations. Taught by one of Australia’s leading barristers, this program is packed with case studies and advice that you can’t afford to miss out on.

Which terms leave you most vulnerable to litigation? Which terms leave you uninsured? How can you establish an effective business relationship with your client that is also legally sound? What are the lawyers really saying?

ow Book n ird B ly for Ear nts u disco

For more information or to register please contact Daniel Condon at the ACEA National Office, daniel@acea.com.au

state news Photo includes: Chris Lock from TIDC, Carl Scully from Evans and Peck and Deborah Dearing from Stockland with winning team

VIC STATE NEWS In November, we welcomed the new Executive Officer for Victoria and Tasmania, Cathryn Ellis.

Victoria

A strong and diverse committee oversees arrangements for talks with government ministers on upcoming infrastructure projects, lobbying major government clients as to procurement practices and contractual terms and conditions, establishing ties with other associations, moving forward on drill rig safety guidelines and further strengthening FutureNet whose theme for 2009 is sustainability.

Tasmania

The Executive Officer has been invited to join the inaugural TCCI Employment, Education, Training and Skills Committee. A division committee meeting is being planned for March with the Executive Officer attending the University of Tasmania careers exp on 19 March.

Planned upcoming Events

Date: 4 March 2009

Venue: Stamford Plaza Hotel, 111 Little Collins St, Melbourne RSVP: Monday, 2 March 2009 Additional info: 2030: A Planning Update: Melbourne@5million, Breakfast with the Hon Justin Madden MP, Minister for Planning - An overview of the policy and opportunities for those in the design and delivery of the built and natural environment. Please contact Cathryn Ellis on cathryn@acea.com.au or 03 8699 7700.

NSW STATE NEWS

NSW Division is seeking any firms which have international offices to support the ACEA/ ACSE Student Scholarship program. Scholarships are offered to three final year undergraduate students annually and winners have the opportunity to undertake work experience in up to three ACEA member firms’ overseas offices. Should you be interested or know any appropriate contacts within your company, please call NSW Division on 02 9966 4966 or email paige@acea.com.au.

Recent Events

2008 FutureNet Business Leaders Awards Dinner The 2008 FutureNet Business Leaders Awards Dinner was held on Thursday 27 November at the Four Points by Sheraton. Over 120 people attended the awards where Head Judge, Chris Lock, spoke of the high caliber of presentations. Team Roe, mentored by Grant Roe of Costin Roe Consulting took out the overall FutureNet Business Leader Award for the Best Presentation. Members of the team included Sarah Crennan of Bovis Lend Lease, Jacinta Holmick of Cardno, Savas Christoridis of TLB Engineers, Ioan Morgan of Turner & Townsend, Nick Boyd of RTA and Liam Pettigrew of Sydney Water. Registrations for the 2009 course will soon open.

SA STATE NEWS

In December, the South Australian branch held the first event in its Breakfast Seminar series. The financial crisis was and is something that is top-of-mind for everyone in Australia and possibly the world. It is effecting and will continue to affect all of us, especially those in business for some time to come. The event entitled “Global Financial Crisis… what does this mean for South Australia” was held at the Radisson Playford Hotel and approximately 80 delegates from senior management within Consulting Engineering and the wider built environment industry. Guest speaker was David Robertson, Head of Financial Markets, Bendigo and Adelaide Bank Group. The discussion focussed on: Economic outlook; The global credit crunch & funding; Interest rate outlook; and Investment opportunities. It informed the delegates on: How it all started; The calendar of the crisis; Consequences for consumers and business; and Consequences for Banks. While the end picture painted wasn’t all that pretty, on a global basis, the facts and figures presented showed that Australia and Canada were probably two countries that would weather the storm the best. Many people commented that as a result of David’s presentation and question time, they certainly understood the situation much better, and any future action they needed to take within their firms, would be done in a much more positive and informed way.

National Outlook AUTUMN 09

LISTENING TO YOUR CLIENTS: THE VALUE OF CLIENT CONVERSATIONS SUCCESSFUL CONSULTING FIRMS AND ARCHITECTURAL PRACTICES THRIVE ON GOOD CLIENT RELATIONSHIPS. BUT DO YOU KNOW WHAT YOUR CLIENTS TRULY THINK ABOUT YOUR BUSINESS OR PERFORMANCE?

QLD STATE NEWS

Division Committee sought comments from members on the latest Dept of Public Works long form contract. A meeting is being sought with the Department to review the document. Division Committee has developed an Action Agenda which both aligns and supports the Association’s National strategic plan. The Division Committee has significant diversity in terms of market and business presence. It believes the success of the committee, both historically and in the future, is strongly linked to this diversity. The committee’s ability to act upon all initiatives is a function of the commitment demonstrated by committee members. While very strong, they are all volunteers. Should you have a strong desire to support and enhance the business environment for your fellow professionals, please contact our Chairman, Ben Coxon, on mobile 0409 062 948 or Lorelei Broadbent on email lorelei@acea.com.au

Planned Upcoming Events

FutureNet Event Date: 22 April 2009, 6.00pm

FutureNet Event Date: June Date TBA, 6.00pm FutureNet Event Date: August Date TBA, 6.00pm FutureNet Event Date: October Date TBA, 6.00pm

Recent Events

Over 140 people, from a range of professions, attended the Division’s first guest speaker networking breakfast on 5 March. David Stewart, the Director-General of Queensland Transport addressed the topic “Queensland Transport: moving Queensland Forward in 2009”. David addressed key issues including an overview of key infrastructure projects Qld Transport is currently delivering and projects that will be considered in 2009; the SmartMobility Strategy; major transport initiatives; and key national policy initiatives.

According to Sue-Ella Prodonovich, Principal of WHK Horwath Business Development, firms that seek feedback are in the best position to protect their client bases.

their other service providers, such as lawyers and accountants. And your clients are also asking their clients for feedback. It's how sophisticated services firms do business.”

“Research shows that seeking feedback improves client loyalty and market advantage,” she says. “The firms that win BRW Client Choice awards are those that have client review programs firmly in place.”

Sue-Ella coaches senior managers from engineering firms and architectural practices on how to win business and secure client relationships, including how to ask for feedback and what to do with it.

Client review programs can also be good for profits. For example, research among the law firms by BTI Consulting reveals that firms that include client research and reviews in their Client Relationship Management programs are 2.7 times more profitable per partner that those that do not.

“The insights clients share are priceless,” says Sue-Ella, “yet firms that do seek client feedback rarely capitalise on the information they glean.”

“While we know it makes good sense to seek feedback, many firms are still reluctant to ask. But why not ask?” says Sue-Ella. “Your clients are already being asked for feedback by

“Feedback can shape the direction of your business. It can change how you manage or staff your next project. And it can unearth new business opportunities. It's that important.” For firms considering a client review program, Sue-Ella recommends beginning with small steps. “Even if you only pose one question to one client, it's a start,” she says. If you are unsure of what to ask, Sue-Ella's five High Value Questions are a good starting point. When Sue-Ella conducts client reviews she often uses a mix of surveys. “We might conduct face-to-face conversations with a client's top 10 accounts, and use telephone ‘health checks’ for their smaller clients, or email a questionnaire as part of a project sign off,” she says. Her view is that face-to-face works best. “When I facilitate face-to-face conversations for firms, my independence makes their clients more forthcoming.” “There's also potential for even greater value. I have been involved in face-toface conversations that have recovered or discovered fees of 5 and 10 times the cost of the interview process. That's a tremendous outcome for any business.” Sue-Ella's Top 5 High Value Questions 1. What are your client' clients doing? 2. Would you have any hesitation in referring our firm? 3. How do you feel your business is going compared to your competitors? 4. What's on your horizon in the next 12-24 months? 5. Over the last 12 months, has our service: improved, stayed the same or declined compared to the previous 12 months? AUTUMN 09 National Outlook

NATIONAL INFRASTRUCTURE CONFERENCE 2009 Building and investing in the future 1st & 2nd April 2009 • The Hilton, Sydney This high proﬁle two day conference will look at the implications of investment in national infrastructure projects on the economy, taking a business perspective on the greatest infrastructure boom ever experienced in Australia.

Confirmed Speakers:

Topics:

Richard Leupen

• Infrastructure – What it means for Australia, business and the economy • Investing in infrastructure • State by state priority infrastructure projects • Freight and public transport infrastructure • Sustainable infrastructure • Open access regimes

Managing Director and Chief Executive Ofﬁcer, United Group Ltd

Sam Walsh Chief Executive Ofﬁcer, Rio Tinto Iron Ore

Hon Joe Tripodi MP NSW Minister for Infrastructure

Graeme Rowley Executive Director, Fortescue Metals Group

Hon Tim Pallas MP

Cost: Full rate: $2420 incl GST Endorsing body: $1870 incl GST Early booking rate: $2145 incl GST

Early booking closes Friday 6 March 2009

Who should attend: • • • • • • • • • • • • • •

COOs Managing Directors Major Project Directors Project Managers Transport Managers Infrastructure Directors Operations Managers Senior Civil Engineers Regional Directors Trafﬁc Operations Managers Project Finance Managers Urban Planners Procurement Managers Sustainability Managers

Victorian Minister for Roads and Ports

Phil Garling Global Head of Infrastructure, AMP Capital Investors

Principal sponsor:

To register or for further information, call 1800 032 577 or visit www.afr.com/events

Supporting sponsors:

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