20
nicola Grayson
System of registration proposed for engineers in Western Australia
30
caroline ostrowski
Renewable Energy Target – Government actions to achieve a 20% share by 2020
SUMMER 2010
40
nicola Grayson
New tax concession proposed for research and development
56
neil bassett
Sydney Towards Tomorrow
FOR THE BUILT ENVIRONMENT CONSULTANT
CUTTING H G U O R H T RED TAPE
Contents SUMMER 2009
p20.
System of registration proposed for engineers in Western Australia The Western Australian Government investigates the need for the registration of engineering professionals.... NICOLA GRAYSON
P30.
Renewable Energy Target – Government actions to achieve a 20% share by 2020 Australia certainly has a lot of work to do in achieving a higher percentage of renewable energy being produced and purchased..... cAROLINE OSTROWSKI
P40.
Columns
From the President
2
From the CEO
4
Industry News
5
State News
16
In the 2009-10 Budget, the Government announced it would replace the existing research and development (R&D) tax concession with a new, more streamlined R&D tax incentive from 1 July 2010..... NICOLA GRAYSON
Practice & Procurement
20
Contracts & Liability
24
Insurance
28
P56.
30
New tax concession proposed for research and development
SYDNEY TOWARDS TOMORROW 10+ million people by 2050 - how to make Greater Sydney the world’s most liveable city in 40 years.... NEIL BASSETT
P60.
2009 awards for excellence
Sustainability
Cutting Through Red Tape
31
Economics & Taxation
40
Skills & Resources
42
OHS
52
Infrastructure
56
Legal Outlook
58
SUMMER 10 National Outlook
1
Excellence in Australian engineering was on display at the ACEA Annual Awards night held in brisbane on Friday, december 4. Over 400 representatives from Australia’s top consultancies gathered to receive recognition for their outstanding work during the year from their peers.
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
DECEMBER 2009 2009 has been quite a year for your Association. During the year there has been considerable effort made to brief all member firms and their representatives about the proposed change of name and branding of the Association. I am very pleased to note that the membership voted overwhelmingly in favour of the proposed changes at the Annual General Meeting in Brisbane.
that, in my opinion, presents some great long term strategic thinking from our industry. It is designed to encourage political and community debate about the future of Sydney in the face of pressures such as a growing population, climate change, increased energy costs and aging population. As has often been said your Association is in a unique position to initiate and lead debate on these sorts of issues but this opportunity has rarely, if ever, been realised. The Sydney report is a major step forward and there will be more to come so watch this space.
The strength of the positive vote is recognition of a carefully configured and effective communication program aimed at the proposals for change. A major benefit of this program has been the opportunity for myself as well as Megan Motto and her team to meet with and communicate with all our member firms on a personal basis. We intend to continue with a pro-active communication program going forward to ensure the organisation best meets the varied interests of the membership.
At a forum held on 4 December in Brisbane, over 30 representatives of member firms met to discuss the issue of registration of engineers. This event was initiated at my request in an effort to obtain a consensus view from the industry of support for registration. I am pleased to report that a strong consensus view was obtained and that we now have a clear way forward for further negotiations with Engineers Australia and APESMA. Details of the position established will be made available in due course through a policy position and action plan that will be available for a more general review and feedback.
In March we held our first Conference for 15 years. It was a very successful event that gave the Board the confidence to hold a similar event in 2010. I would recommend to you that you book soon to avoid disappointment as I believe this is a great opportunity for all attendees to participate in a very pro-active and pertinent program. In November, ACEA published a report entitled Sydney Towards Tomorrow. This is a report prepared through the Infrastructure Roundtable and represents a significant achievement as a thought leadership piece
As well as all this of course Megan and Nicola Grayson with her policy team have been working tirelessly on policy issues across a very broad spectrum. I would like to thank them all for their tremendous efforts on your behalf over 2009. The team both in the National office and across all the States have been very well supported by Julia Lemercier and her administration team. Again, I would like to thank them on your behalf for all their efforts over the past year. Finally, I would like to thank
the State Managers, the State Chairmen and their committees for their dedication and commitment to the interests of the industry and the individual member firms during 2009.
Paul Reed ACEA President
National Outlook Editor Julia Lemercier Sub-editor Nicole Pusic Advertising Enquiries Benjamin Jung Phone: (02) 9922 4711
Email: ben@acea.com.au
National Outlook is produced by the Association of Consulting Engineers Australia (ACEA). Phone: (02) 9922 4711. Website: www.acea.com.au
President Paul Reed Chief Executive Megan Motto National Operations Manager Julia Lemercier National Policy Manager Nicola Grayson Policy Officer Caroline Ostrowski Business Relationship Manager Benjamin Jung Events Manager Nicole Pusic Designer Hugh Peinke Education & Training Coordinator Daniel Condon Finance & Membership Coordinator Sylvia Suen Executive Assistant (CEO & Policy) Kerri Clifford Executive Assistant (Operations) Leena Moorjani Immigration Officer Svetlana McNeil Editorial Submissions GPO Box 56, Sydney NSW 2001 National Outlook Š 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.
This Magazine has been printed with Vegetable Based Inks using Certified Environmental Management System ISO 14001, on Mega Recycled FSC Silk made up of 50 per cent recycled post consumer waste and 50 per cent FSC certified fibre.
2
National Outlook SUMMER 10
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from the ceo Megan Motto is Chief Executive of the Association of Consulting Engineers Australia
DECEMBER 2009 At this time of the year one often takes pause to reflect on the twelve months past, and what a busy and exciting year it has been for both me and the ACEA. Apart from having a little boy who just turned one (a real reminder of how fast time flies), we have had one of the most eventful years in ACEA history, culminating of course with the vote to change the name of the organisation at the AGM earlier this month. In between we have run probably the most exhaustive consultation programs ever run for an organisation of our size, including a personal contact to every single member firm CEO to discuss the potential change and talk
through any questions or comments. On top of that there were focus groups, surveys, face to face meetings in every state and numerous letters and emails. I believe one member summed up the result of this when they commented to me that the overwhelming support we achieved in the end was an “Excellent demonstration of the engagement and enrolment you achieved”. As exciting as the change is, it also means we have a monumental task ahead of us in 2010 to make sure the roll out and communication of the new brand is as successful as the vote itself. We have already started working with our national staff, State Managers and Board on a marketing program that will ensure that the new brand is recognised and understood by all of our current and future stakeholders. Importantly, we will be calling on you, our members, to assist us with this endeavour by communicating the change to your staff and clients as well. On top of that, we will have another extraordinary year with more policy work, a new Strategic Plan and of course making sure we are providing ongoing services and value for our members. With regards to our policy work, I particularly would like to thank Michael Deegan, Infrastructure Coordinator for Infrastructure Australia who, in giving the
keynote address at our Awards for Excellence, congratulated the ACEA for daring to be brave in our public policy work. However, as I indicated at the Awards, it is through the diligent work and intellectual input of our members that we are able to generate the quality of work that we do in our public policy, and for that the kudos must go to our members. In the words of my Association counterpart in the United States; “if you are not at the table, you are probably on the menu”. As the year wraps up I would like to take this time to make a few quick thanks to everyone who has contributed to ACEA’s success in 2010. In particular I’d like to thank the National and State staff, headed up by Julia Lemercier and Nicola Grayson, for their outstanding work and dedication, our Round Table and State committee chairs and participants and our Congress and Board for their continued support and commitment. Finally, I would like to wish all the staff, members and their families a happy and safe Christmas break
Megan Motto Chief Executive
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National Outlook SUMMER 10
industry news
BEST FOO T UR RWARD FO
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ACEA NEWS
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THE 2010 ACEA CONFERENCE ACEA is pleased to announce that after the success of this year’s Conference, the ACEA has confirmed it will host another conference in 2010. The 2 day conference will be held on Thursday 18 March - Friday 19 March 2010 at the Amora Hotel Jamison Sydney. More information is available at www.acea.com.au.
Built Environment Legal (BEL) Appoints New Solicitor Director Built Environment Legal (BEL), a wholly owned subsidiary law firm of the Association of Consulting Engineers Australia (ACEA), is pleased to announce the appointment of Susan Isho as Solicitor Director. Built Environment Legal was established by the ACEA to provide critical legal advice to members on all issues affecting their business and specialises in providing quality legal advice to firms practising in the Built & Natural Environment. ACEA members also receive a generous 25% discount on all legal services provided by BEL. Contact Susan today on (02) 8252 6718 or susan@belegal.com.au.
Waterman AHW Wins 2009 Export Award Waterman AHW Consulting Engineers has been named winner of the National Export Award, Building and Construction Services under $25 Million category at the Master Builders Australia National Awards. Waterman AHW was announced as winners at the awards evening held on the Gold Coast in Queensland on November 7th 2009. Waterman AHW was granted this award by the judging panel in recognition of providing a comprehensive range of consulting engineering services in the United Arab Emirates, Vietnam, Russia, Poland, Kazakhstan and Africa.
The award was presented to Godfrey Frederick, Waterman AHW’s Business Development Manager, who commented, “We are fortunate to have such a healthy export profile from Australia. Winning this award is a reflection on the quality and dedication of the engineers and management teams that we have in Australia which allows us to work so successfully overseas.” Waterman AHW
GHD sprints ahead on Australian Institute of Sport redevelopment The redevelopment of the Australian Institute of Sport, an icon in Australia, has been recognised by the Australian Institute of Project Management at its awards in Canberra. The AUD$77 million redevelopment project, managed by GHD for the Australian Sports Commission, was delivered in time for Australia’s sporting elite to prepare for the highly successful 2008 Olympic Games. GHD Project Manager Ian Warwick said GHD was proud to have managed the delivery of the new and renewed buildings and facilities. “The redevelopment has brought to life the Australian Institute of Sport’s vision for the AIS of the 21st century,” he said. In addition to new athletes’ residences for 144 live-in scholarship holders, the redevelopment includes a new service hub to provide state-of-the-art coaching techniques and a six-lane indoor 115m running track for all-weather training. Other components of the redeveloped AIS are a new Aquatic Testing and Training Centre, a Sports Development and Education Centre, and a Multipurpose Training Facility. The redevelopment also upgraded campus engineering infrastructure, technology and air conditioning in training halls. GHD was recognised for its successful management of time, cost, risk and communication on the project, in the projects <$AUD100 million category. A web-based online collaboration management system helped communication between the architects, designers, builders and the Australian Sports Commission. Mr Warwick said: “We knew that excellent communication and cooperation would be the key to successfully delivering on the client’s vision for the AIS redevelopment and we worked hard at this.” GHD
SUMMER 10 National Outlook
5
industry news
book review: PRACTICAL GUIDE TO ENGINEERING AND CONSTRUCTION CONTRACTS PHILIP LOOTS AND DONALD CHARRETT The book is described on the cover as “accurate, authoritative, relevant,” and it is all of these, and I would add “well organised, informative, comprehensive.” The authors – Philip Loots, a lawyer now Australian based, but with wide international experience in the construction and mining sectors, and Donald Charrett, a barrister working in building and engineering disputes, but for 30 years a practicing engineer and formerly a leading ACEA member – have produced a guide on contracts which is indeed “practical” but also balanced and comprehensive. Impressive features include: A discussion of Contract Law and the Trade Practices Act with reference to construction contracts – should be compulsory reading for all engineers A review of contract models and related standard forms both Australian and International (FIDIC, ICE, NEC3 etc) Chapters on each component of a contract, arranged in logical sequence more or less following the FIDIC format (recognised as a strength of FIDIC), with ample case references Appropriate emphasis on issues which frequently lead to disputation eg. proportionate liability, obligations of the parties, physical conditions, design responsibilities, variations and risk Excellent coverage of dispute resolution including a unique table comparing 15 resolution mechanisms. The final chapter provides a number of case studies (including Westgate), ranked as “successful” and “unsuccessful”, with lessons learned – surely the best guide to successful management of contracts. The book concludes with a Glossary of Terms (destined to become standard) and comprehensive lists of references, standard contracts, case studies and applicable Australian Legislation. The book is strongly recommended as a standard text on contract management for consulting engineers, and also contractors, owners, architects, lawyers, project managers and others involved with construction contracts. Richard Kell AM FTSE Hon FIEAust, CPEng
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National Outlook SUMMER 10
Fear, Hope, Despair Gregs Thomopulos (Stanley Consultants, USA) in his inaugural speech as FIDIC President described the global sustainability challenge in three simple words, “fear, hope and despair.” Developed countries live in fear; fear of what they have to lose; Emerging economies live in hope; hope of what they will be able to achieve; The rest of the world live in despair; despair that they will never overcome their challenges (poverty, starvation, drought etc). Delegates were asked to consider the key actions to ensure a sustainable industry, society and environment.
Actions for FIDIC Dick Kell, Cardno Australia, Past President of FIDIC and ACEA Life Member presented as part of a panel discussion on the actions for FIDIC and the following items were identified: Promote the planning and development of sustainable cities through the creation of matrix/benchmarking systems to measure sustainability across the globe. Develop people and resources in the consulting industry through the development of a framework and guidance to promote the profession in schools and colleges. Create a FIDIC masters certificate. Provide greater assistance to developing countries through a mentoring network and facilitate partnerships with developed countries. Improve promotion and refresh FIDIC guidance on ethics and ethical behaviour. Actions for FIDIC member associations Megan Motto, ACEA CEO, presented as part of a panel discussion on the actions for member associations and the following actions were identified: Engage governments to champion issues of importance and raise the profile of the industry and its abilities.
Professionalise the industry through the development of education and training programmes, and the publication of guidelines.
Actions for consulting engineering firms Tony Barry, Aurecon Australia, Past President of ACEA and Life member presented as part of a panel discussion on the actions for consulting firms and the following actions were identified: Introduce and manage integrity and value propositions for the firm. Train and invest in people. Engage with politicians and the public. Invest in research and thought leadership. Support and promote member associations and FIDIC Importantly it was recognised that the consulting engineering industry has an important role to play in addressing urgent needs of society, and in assisting world leaders to take positive steps on climate change and the impact on infrastructure. At the conclusion of the conference FIDIC undertook to send a letter to the Secretary General of the United Nations offering to give evidence at the Copenhagen Climate Change Conference in December 2009. The purpose will be to demonstrate that the consulting engineering community has a significant role to play in averting disasters, helping society adapt to climate change and providing solutions to security of supply and conflicts over resources. Consulting engineers can offer concrete proposals that would ensure that the agreement reached at Copenhagen is relevant and able to be implemented. The FIDIC conference is a stimulating and rewarding experience, which the ACEA commends to all industry professionals and business leaders. FIDIC’s 2010 conference will be held in New Dehli on 12-15 September and the theme will be, Managing Innovation – The Way Forward. Details are available on the FIDIC website: www.fidic.org. Nicola Grayson
industry news
FIDIC London 2009 Global Challenges This year’s FIDIC (International Association of Consulting Engineers) was held in London, with the focus on sustainable solutions to global challenges. The global economic downturn cast a patina over the event with repercussions across the FIDIC membership. With substantial decreases in Gross Domestic Product (GDP) reported by most consulting engineering associations in the FIDIC membership it appears that infrastructure spending has been a key government response to the economic crisis. This has been assisting the industry’s defence against a substantial drop in revenues. That said the downturn has had a dramatic effect on the industry in some countries. The worst coming from the Association of Consulting Engineers of Ireland, which reported that the industry had dropped to an annual turnover of €16bn from €38bn reported in 2007, they anticipate that revenue will continue to drop to a level of €10bn in 2011. Ireland’s real Gross National Product growth is forecast at -8.0 per cent for 2009. South Africa reported a substantial R787 billion (A$111bn) public sector infrastructure programme being driven in the main by preparations for the 2010 World Cup (Soccer). The South African Government has set itself a goal of growing the construction sector to 25% of GDP.
Stimulus Packages: Infrastructure Component Country Instrument Date European Union
Total Infrastructure
European Council Agenda 11-12 Dec 08 EUR 200 bn (includes Member Country stimulus packages given below)
EUR 173 bn for extra measures
Australia Announcement
15 Oct 08 12 Dec 08
USD 7.4 billion AUD 2.5 billion
AUD 2.5 billion RIA 67.8 billion
Brazil
Signed into law
23 Jan 09
RIA 36 billion
Canada
Announcement
13 Jan 09
CDN 30 billion
Brazil
Signed into law
23 Jan 09
RIA 36 billion
RIA 67.8 billion
Chile
5 Jan 08
USD 2 billion
USD 0.7 billion
China
Announcement
10 Nov 08
USD 600 billion
USD 540 billion
China, Hong Kong
HKD 56 billion
China, Taipei
TWD 58 billion
Egypt
Dec 08
EGP 15 billion
France
EUR 26 billion
EUR 10.5 billion
Germany
1st and 2nd Stimulus Packages
Dec 08 - Jan 09
EUR 51 billion
EUR 14 billion
Hungary
HFT 1.4 trillion
India
7 Dec 08 and 2 Jan 09
USD 60 billion
USD 33.5 billion
Israel
Nov 08
ILS 21.7 billion
ILS 11.2 billion
Italy
EUR 80 billion
EUR 16.6 billion
Japan
Aug - Dec 08 (3 packages)
USD 133 billion
Korea
Nov 08
USD 11 billion
USD 7.8 billion
Malaysia
4 Nov 08
USD 1.9 bn
USD 0.91 billion
Netherlands
EUR 6 billion
Peru
8 Dec 08
USD 3.3 billion
Portugal
EUR 6.6 billion
Russia
USD 12.7 billion
USD 20
Singapore
Announcement
23 Jan 09
SGD 20.5 billion
SGD 4.4 billion
Spain
EUR 38 billion
EUR 9 billion
Sweden
Announcement
5 Dec 08
SKR 8.3 billion
SEK 1 billion
Switzerland
Government approved
CHF 0.9 million
Thailand
Government approved
16 Jan 09
BHT 115 billion
UK
Announcement
Nov 08
GBR 20 billion
USA
American Recovery and Reinvestment Act draft
15 Jan 09
USD 550 billion
USD 180 billion
Vietnam
USD 6 billion
USD 3 billion
The demand for consulting engineering engineering services Investment in infrastructure is equivalent to an increase in Gross Fixed Capital Formation (GFCF). GFCF measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped. So it is a measure of the net new investment in fixed capital assets. Its aim is to measure the value of net additions to fixed capital stock, but somewhat confusingly, GFCF is called “gross” because it does not include the depreciation of assets. Nicola Grayson Source: FIDIC Fiscal Stimulus Package Survey 2009
SUMMER 10 National Outlook
7
industry news
Arup celebrates opening of the Thiess Dempsey House A project led by Thiess in partnership with Childhood Cancer Support (CCS) has resolved an urgent need to expand CCS’s accommodation facilities in Brisbane. Arup attended the official opening and handover ceremony on Saturday 15 August.
Scott Brown debates Sydney dust storm On September 23rd 2009, Director of Waterman AHW (Sydney) Scott Brown was invited to speak on a live ABC Radio program that was debating the dust storm that engulfed Sydney and other parts of NSW. As an industry expert in Mechanical Building Services, Scott was quizzed about the effect of the dust storm on building air conditioning and ventilation systems so as to offer advice and reassurance to building owners and occupants in NSW. Extremely high atmospheric dust levels in Sydney and other areas of New South Wales and the ACT caused concern with respect to building air-conditioning systems and their ability to function. Scott Brown noted that in the majority of office and other large buildings, airconditioning systems feature a filtration process that removes solid atmospheric contaminants from outside air flows. If the air filtration systems are installed and maintained it is unlikely that any significant amounts of dust would enter the air-conditioning system and be deposited in buildings although, it could clog filtration systems more quickly than usual and this may cause operational problems with air flow and/or dust leakage. Waterman AHW
Scott Brown
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National Outlook SUMMER 10
The Thiess Dempsey House Project involved the refurbishing of an existing 1920s cottage and building three new units directly behind – providing vital accommodation for families while their children undergo cancer treatment at hospital. Arup is proud to lend its expertise to this important project, providing structural engineering services to Thiess and working with BVN Architects. Arup’s involvement included the design and documentation of a three-unit double storey set of apartments and the relocating and raising of the existing 1920s Queenslander. Stephen Davies, a senior engineer with Arup said: “The opportunity to work on such a well structured, well supported and worthwhile project was very inspiring.” “Our goal on this project was to work closely with Thiess and the architect to help deliver their vision while contributing to the design solution with a high quality, practical engineering solution.” ”On a personal note, I have found this to be a worthwhile and inspiring project to be involved in. I feel privileged to have been given the opportunity to work with Thiess and the other project partners to give back to the community in such a meaningful way.” The units are designed to be selfcontained each with two bedrooms, a kitchen, lounge, bathroom and laundry facilities. The redevelopment took place on a small 400 square metre block, is fitted out with rainwater tanks and provides parking and storage.
“The unit complex itself is a fairly straight forward braced steel framed building. One of the more interesting details was at the perimeter corners of the double cantilevering roof,” Stephen said. “The architect was seeking a slim edge detail avoiding the use of supporting cantilever beams perpendicular to the primary roof purlins. The solution involved the extensive use of the purlins as structural diagonal ridge beams and jack rafters to achieve this detail.” Staff from Arup’s building structures group in Brisbane were involved in the redevelopment project, which was funded through Arup’s regional Community Partnering Program. Arup’s Community Partnering Program was established to encourage and support the communities in which Arup operates. A key component of the program is to provide staff with opportunities to supply pro-bono support and assistance to charitable and community groups. For more information on the Thiess Dempsey House Project or to make a donation, please go to: www.thiessdempseyhouse.com.au Arup
industry news
Top secret Defence facility delivers accolades
PB wins Federal Carbon Capture and Storage project
The construction of the new Defence Headquarters Operations Centre at Bungendore has been recognised by the Australian Institute of Project Management at its awards night in Canberra.
Parsons Brinckerhoff (PB), together with its consortium partners, will provide commercial and technical advisory services to the Carbon Capture and Storage (CCS) Flagships Program administered by the Department of Resources, Energy and Tourism.
The facility – the most secure and fully accredited top-secret large scale Defence facility in Australia – was recognised for excellence in construction/ engineering for projects in excess of $100 million. GHD provided project management, architectural and engineering support services for the centre, which is home to about 750 military and civilian Defence staff with responsibility for the planning and conduct of military campaigns and operation.
A key part of the broader $4.5 billion Clean Energy Initiative, the CCS Flagships Program will provide $2 billion over nine years towards the development of two to four industrial scale CCS projects in Australia.
It is the first time all of the key elements necessary for the planning and command and control of Australian Defence Force operations have been brought together under one roof.
PB Australia-Pacific Managing Director Dr Jim Mantle said it was encouraging to see strong government commitment for the development of large-scale CCS projects.
The centre is the first new facility commissioned by the Federal Government under a Public Private Partnership. The Five Star Green Star-rated building project had all the hallmarks of a major civil construction project including water and sewerage treatment works, road and rail bridge, stand-alone power generation capability and 280km of data cabling to service state-of-the-art IT systems.
“Coal remains a major source of Australia’s energy, which means the acceleration of CCS technology is vital for us to effectively tackle climate change.” “If Australia is to meet its greenhouse gas emissions targets, then CCS is the one solution to significantly reduce CO2 emissions from power generation.”
The integrated design development process required input from Commonwealth agencies ranging from the Australian Federal Police to the Special Air Service Regiment, the operator, private financiers and the construction contractors.
“PB and its consortium partners, ACIL Tasman, KPMG and Senergy, will assist the Australian Government and its Independent Assessment Panel to evaluate the technical and commercial aspects of proposed CCS projects.”
Despite the challenge of managing so many stakeholders, and the top-secret security requirements, the project was delivered on time and on budget.
The program aims to create 1000MW of low emission fossil fuel generation and will significantly aid Australia’s contribution to the G8 goal of 20 CCS demonstration projects globally by 2020. In May 2009 the Federal Government called for State and Territory governments and the Australian Coal Association Low Emissions Technology Ltd to nominate projects for support under the CCS Flagships Program. Based on the timetable in the program guidelines, the Government plans to announce selected projects for the program in August 2010. Construction of successful projects is expected to commence from 2012 with commissioning from 2015. For more information on the CCS Flagships Program see: www.ret.gov.au/energy/energy%20 programs/cei/ccsfp/Pages/default.aspx Parsons Brinckerhoff
“This is a global effort – PB has assembled an international team including CCS experts currently advising the UK Government on a similar program,” said Dr Mantle.
GHD project manager Bob Rosenbauer said the successful completion of the centre in November 2008 was a significant achievement, with a construction period of less than 18 months. “This is a one-of-a-kind facility, encompassing a state-of-the-art command and control centre that meets the environmental objectives of the Department of Defence, and we are proud to have provided our support to the project,” he said. GHD
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industry news
new aspac chairman Congratulations to Dennis Sheehan, Opus Qantec McWilliam, on his appointment to the Chair of the International Federation of Consulting Engineers Asia Pacific Regional Forum (ASPAC). The ACEA’s Immediate Past President, Dennis Sheehan, was elected Chairman of ASPAC at the FIDIC Conference held in September, and hosted by the UK Association of Consulting Engineers in London, for a 3 year term.
So what are FIDIC and ASPAC? The International Federation of Consulting Engineers (FIDIC - the acronym stands for the French version of the name) represents the consulting engineering industry globally. As such, the Federation promotes the business interest of firms supplying technology-based intellectual services for the built and natural environment. FIDIC activities are carried out by Committees and Task Forces appointed by the Executive Committee which are mainly composed of volunteers from member associations and firms. FIDIC associations in the Asia-Pacific region are grouped together in an organisation known as ASPAC which comprises some 20 Countries from Iran and Uzbekistan in western Asia, to Australia, Fiji and New Zealand in the Pacific.
The Singapore Office of Heggies Pty Ltd has been successful in winning Contract C9182 with the Land Transport Authority of Singapore, covering the groundborne noise and vibration assessment for the Singapore Downtown Line Stage Two Project. ASPAC is managed by an elected Committee of 7 members currently from Australia, Iran, India, Japan, Korea, China-Taipei and the Phillipines and operates with the following objectives using a Secretariat provided by the Chairman’s Association. To provide a forum for the free exchange of information among FIDIC Member Associations within the Asia and Pacific Region To foster the consulting engineering industry in accordance with the principles and constitution of FIDIC and to encourage the formation of associations of consulting engineers where these do not exist in countries within the region To advise and make recommendations to the Executive Committee of FIDIC concerning particular matters affecting the interests of consulting engineers in the region, to report regularly on ASPAC activities and to provide an Annual Report for submission to the General Assembly Meetings, both of ASPAC and FIDIC To maintain dialogue with other regional organisations representing engineering in the ASPAC region To organise meetings, seminars, workshops and conferences as appropriate and to disseminate information on developments in the region by newsletter and other means of communication To promote and support activities being conducted by its Member Associations in the region. As two of the next 3 FIDIC conferences are being held in our region (New Delhi, India in 2010 and Seoul, South Korea in 2012) and we are also planning a conference in Vietnam in 2011, there is plenty of scope for the ASPAC committee to be active in this region during its term. Nicola Grayson
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National Outlook SUMMER 10
Heggies wins Major Metro Acoustics Contracts
Following on from earlier contracts with Sydney Metro and the Transport Infrastructure Development Corporation, Heggies has also been appointed as Acoustical Technical Adviser for further work on Sydney’s metro projects. The NSW Government has committed funding to start work on a new metro rail system for Sydney. The first stage of the network will run from Rozelle to Central, the second stage will extend from Central to Westmead. Having completed the noise and vibration component of the Environmental Assessment for Sydney Metro Stage 1 (Rozelle to Central), Heggies will provide specialist advice to Sydney Metro during the public consultation phase and for assessment of tenders for the Design, Construction and Handover for the Permanent Rail Infrastructure (PRI) Contract. In parallel with this role, Sydney Metro has also contracted Heggies to investigate and report on noise and vibration impacts as part of the Environmental Assessment of Sydney Metro Stage 2 (Central to Westmead). Heggies
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2009 FutureNet Business Leaders course Thursday 26th November 2009 marked the end of the 2009 FutureNet Business Leaders course with an Awards Dinner at Wolfies, Circular Quay and close to one hundred people in attendance. The course, now in its third year, offers leadership development and enhanced industry networks to enable Future Leaders to thrive in the changing built environment. It takes the best of the best from across the built environment and over eight months, focuses on topics such as Team Leadership, Relationships, Finance, Risk and Contracts, Innovation, Negotiation and Communication. Mid way through the course, participants were allocated into teams and each team was assigned a mentor. The 2009 mentors were Peter Cuk from Evans & Peck, Greg Phillips from Bovis Lend Lease, Harry Batt from Hyder Consulting and Andrew Pettifer from Arup. The program concludes with an eight week team task which engages participants in developing and submitting a submission on a major NSW infrastructure challenge.
This year, the task was the re-development of Sydney Airport and teams presented their proposals to a live judging panel which was headed by Ed Blakely, Professor of Urban Policy – The United States Studies Centre, Sydney and consisted of Peter Collins, Director, Network Management – RTA, Penny BinghamHall, Executive General Manager, Strategy – Leighton Contractors, Tristram Carfrae, Principal – Arup and Ceinwen Kirk, General Manager, Commercial – Bovis Lend Lease. The presentations were held prior to the dinner and there was one award on offer for the Best Overall Proposal. The dinner saw Ceinwen Kirk discuss the industry relevance of the FutureNet Business Leaders Course, past participants addressed the audience and Head Judge, Ed Blakely, commented on each team’s proposal and announced the winning team.
Winning Team (l to r): Tom Lord, Greg Phillips (Mentor), Phil Malcolmson, Ed Blakely (Head Judge), Alana Burrows, Jennifer Mak and Tarmiji Lutffi
Ed Riley, Julia Lemercier, Mike Thackray and Paige Defries
‘Life Solutions’ consisting of Alana Burrows from Parsons Brinckerhoff, Jennifer Mak from RTA, Phil Malcolmson from Hatch Associates, Tarmizi Lutffi from TIDC and Tom Lord from Abigroup won the Best Overall Proposal. Personal thanks must go to Ed Riley from MaxSam who has been the driving force behind the course since its inception and contributes a tremendous amount of time and energy. Thanks must also be made to the 2009 committee consisting of Paul Pike, Richard Jones and James Restuccia from Evans & Peck, Joyce Lee from Hyder Consulting, Rebecca Lehman from Parsons Brinckerhoff and Jai Reddy from RTA. Finally, thank you to the mentors, speakers and judges who contributed to the course in such a positive way. Registrations are currently being taken for the 2010 course which is due to commence in April. For further information, please contact Paige Defries at ACEA NSW Division on (02) 9966 4966. Paige Defries
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Mentors (l to r): Andrew Pettifer, Peter Cuk, Greg Phillips, Harry Batt and Ed Riley (Course Convenor)
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RedR Australia 2008-09 Financial Year at a Glance During the financial year, 57 RedR Australia Registered members joined UN teams and other foreign nationals, to deliver vital aid around the world. Of the 67 assignments commenced, 27 were undertaken by women, and 285 months of field service were delivered. First mission deployments totalled 30, a pleasing balance of opportunity for all. One Register member completed a tenth RedR Australia assignment in as many years. It was a year when the world economic crisis cast its own heavy shadow over endeavours to rescue those whose lives have been shattered by emergency, disaster and victimisation associated with conflict. Pleasingly, despite the financial climate, Australians continued to come forward, enquire about their suitability, and undergo the vital training in preparation for emergencies and disasters. Our people were required in 21 different countries during the year including Bangladesh, North Korea, Eritrea, Fiji, Georgia, Laos, Malawi, Maldives, Myanmar, Nepal, Pakistan, Philippines, South Africa, Sri Lanka, Somalia (based in Kenya), Sudan, Uganda and Zimbabwe. Two United Nations head office positions were undertaken in Italy and Switzerland.
the Kenyan capital Nairobi, with parts of Somalia, and particularly Mogadishu being among the most dangerous places on earth. RedR Australia supplied four Register members to the United Nations relief operation following cyclone Nargis in Myanmar. Local resources had not been able to handle the human misery generated by the cyclone and its associated tidal surges and storms in the densely-populated Irrawaddy delta region near the coast.
to emergency relief and personal security and communications. Participants also undertook specialised technical courses in logistics, water, sanitation and communications. The live-in courses provide a range of learning experiences, including scenarios and field exercises to equip participants with the skills to respond quickly and effectively during humanitarian emergencies.
Our philosophy is that people whose lives have been shattered deserve assistance from the most capable and sensitive aid workers, well prepared for the logistical, cultural and diplomatic challenges in the delivery process.
As the Australian economy begins to chart more stable territory, I would like to think that more commercial enterprises will see their way clear to enter into supportive arrangements with RedR, to enable more people to go on humanitarian mission.
319 aid workers were trained by RedR Australia in 2008-09. Core training courses included an introduction
RedR Australia’s full annual review may be found at: www.redr.org.au Alan McLean, Chief Executive Officer
Darfur in Sudan’s west continues be a scene of great suffering, with 300,000 deaths and more than two million homeless since 2003. Twenty-one RedR Australia Register members were assigned, some more than once, reflecting the ongoing massive humanitarian need. Our people dealt with virtually all the disaster relief disciplines - water and sanitation, protection, air transport, warehousing and logistics, protection of the most vulnerable, coordination, information technology - even staff counselling - in this long and troubled operation. Sudan’s neighbours Eritrea, Ethiopia and Kenya, and their neighbours Djibouti and Somalia were also areas of great on-going need. With massive dislocation of people into camps, site planners were needed, along with construction engineers, child protection officers, and coordinators of humanitarian assistance. For Somalia, it was a case of assisting by long-distance from
Greg Blaze’s three month assignment with World Food Programme Somalia involved rehabilitating bridges and upgrading road corridors for delivery of humanitarian supplies.
Constructing a water tank at RedR Australia’s course in Water, Sanitation & Hygiene in Emergencies enables participants to become familiar with field equipment. (Dookie, Victoria)
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state news
vic DIVISION Victoria continues to lobby the State Government regarding onerous contractual terms and conditions. Cathryn Ellis and two members recently met with the Parliamentary Secretary to the Premier and a senior Planning Department director to discuss the issues. The outcome was positive with the department undertaking to develop policy for the building and construction industry with a view to providing fairer terms and conditions. However, this policy is subject to Cabinet approval. A joint lobbying exercise has also been conducted with the RAIA and the BDA (Vic) regarding the model OH&S laws. The advisor to the Minister responsible for OH&S has demonstrated a sound understanding of the design issues and has been exploring ways of approaching the matter with other states. The issues relating to alliancing have been addressed with members identifying high bid costs and the core principles of alliances becoming diminished as being issues of concern. This is being followed up by the national office. A VicRoads roundtable has also been established which is identifying and redrafting the contractual issues of concern. This will then be discussed at the rehabilitated ACEA/VicRoads BPIG (Business Industry Partners Group). The Drill Rig OH&S guidelines are progressing well with drafting having commenced. The approach taken by the ACEA/ADIA committee is not to solve issues but to identify key hazards and recommend acceptable minimum controls. Two events have taken place at the time of writing. The General Manager of VicUrban talked about their current and future projects and sustainability and FutureNet learned of the synergy between business development and client relationship management.
We wish to thank BST Global, leading global provider of business management solutions for architectural, engineering and environmental consulting firms, for its continued support as a sponsor. We also welcome MTU Detroit Diesel Australia, a leading global provider of Diesel and Gas Power Generation Solutions for their sponsorship commencing 1 November 2009.
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National Outlook SUMMER 10
tas DIVISION In Tasmania, Cathryn Ellis and ACEA divisional chair, Rob Casimaty met with Treasurer Aird’s chief of staff and a senior department official to discuss onerous contractual terms and conditions. Whilst our issues were understood, Treasury expressed a reluctance to provide prescriptive guidelines to government departments in their procurement practices. However, they were keen to ensure that the departments were better educated as to procurement issues. Whilst this is in some ways disappointing, ACEA will take the matter further through the Building and Construction Industry Council and other politicians and arms of government. ACEA will also met with Southern Water on 26 November covering the following: An introduction to key staff/managers in the assets area; Overview of Southern Water structure Southern Water’s key activities for the next twelve months A description of how Southern Water does business, and where they are likely to use consultants.
Act DIVISION A FutureNet committee within ACT was recently developed and the committee has been focusing on developing their 2010 calendar, obtaining sponsorship and organising their ‘launch event’ which was held on 19 November at Cellar Bar in Canberra. Callum Heinrich of Northrop Engineers was elected as Chairman of the committee and the committee is made up of representatives from across the built environment industry. The outlook looks very positive with a mix of soft topic and technical events planned. A Members meeting was held on 20 November where issues affecting ACT members and the development of a Divisional committee were discussed. Further details will be available within the next edition of National Outlook.
state news
NSW DIVISION The NSW Division would like to acknowledge the support of their primary sponsor, BST Global, and their many seminar, FutureNet and event sponsors throughout the year.
From left, Mike Thackray – Chairman, NSW Division, John Watson – General Manager, WorkCover NSW and Les Millist ACEA Member – GHD.
ACEA officially launched the ‘WorkCover Safe Design Guide’ on 17 September, with guest speaker John Watson, General Manager Occupational Health and Safety Division, WorkCover Authority NSW in attendance. The NSW Division continues to run successful seminars, events and workshops. These events were: NSW Division AGM was held on 20 August in Sydney. Megan Motto discussed the association’s proposed name change and addressed the member’s queries on the proposal. On 24 September, the NSW Division Civil and Environmental Committee held a CPD seminar titled: Security of Payments Act: Hot to make it work for your business! with guest speaker Scott Pettersson from Publishing Pla.net The committee also organised a site visit to the Minto Urban Renewal Project on 21 October, which highlighted all the challenges associated with a brownfield re-development. On 29 October the NSW Division Mechanical & Electrical Branch held a seminar which focused on the issues fundamental to the effective completion, ongoing efficient operation and maintenance of modern buildings titled: Out of tune: The responsibility of HVAC commissioning in today’s green buildings. The ACSE arranged the Fire Engineering for Structural Engineers seminar on 5 November, featuring three speakers; Andrew Abrahams, Bob Potter and Felix Gamon. FutureNet Business Leaders continues to run steadily and participants were recently given their final project which focuses on the redevelopment of Sydney Airport. The course concluded with an extravagant Awards Dinner on 26 November. An all day workshop was held on 12 November titled: New Approaches to Managing the Workforce. In the aftermath of the GFC, many organisations have been forced to rethink their workforce strategies and this workshop was aimed at those seeking to come to grips with the complexities and challenges of people management in the contemporary workplace. Sydney FutureNet held a fantastic networking event sponsored by Opus on 12 November hosted by Julia Palmer, Australia’s leading relationship trainer from BConsulted. Newcastle FutureNet continues to be very active and they finished 2009 with a social lawn bowls event. The Division continues to sponsor university student events; with two successful barbecues already held this year the aim is to visit all major universities across NSW. These events offer a great opportunity for members to represent their firms and engage with the students. University scholarship winners continue to travel with two students currently overseas. They will report on their experience at the NSW Division Annual Dinner which is due to be held mid 2010. The Division has been liaising with the RTA in regards to their draft Design and Construct (D&C) contract which they forwarded to ACEA for comment.
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state news
qld DIVISION The QLD Division have hosted 6 well-attended events for members and industry since July. These events were: WaterGrid Management in SEQ Managing Business Performance in Tough Times Queensland Transport: Moving Queensland Forward in 2009 BrisConnections: Airport Link Update The Professional Engineers Act (2002) – Your Questions Answered Queensland Mines and Energy: Geological Survey of Queensland – bringing investment for Queensland’s resources. The Qld FutureNet committee have hosted 2 very successful networking events in this period. These events were: Snapshots of the Future ‘Survivor’ Comedy Debate 09 – Engineers vs Lawyers.
ACEA QLD Division would like to take this opportunity to thank the following 2009 sponsors: Event Sponsors:
The QLD Division have also been active in the following areas:
FutureNet Fidic Competition The QLD Division awarded the 2009 FIDIC Competition prize to Kristen MacAskill, MWH. Kristen has now returned from the London conference and early next year will present to the FutureNet committee and members on her experiences. We would like to also congratulate Josephine MacLeod, AECOM who has been confirmed as winner of the 2010 prize and will travel to New Delhi, India in September 2010. Meetings with Stakeholders Queensland Division has met with the Department of Public Works (DPW) and the Department of Transport and Main Roads (DTMR) and are in the process of setting up a meeting with LocalBuy. DPW - We met in August with the Hon Minister Schwarten, and again on 10 November 2009. The second meeting had not taken place at the time of writing, but was set up to continue discussions around National Registration of engineers and Safety in Design legislation. On 12 October, representatives of the ACEA met with the Legal Section of the Department of Public Works (DPW) to continue discussions relating to onerous contract clauses. Whilst many of the clauses were discussed and changes agreed upon in certain cases, the main focus of the discussions related to limit of liability clauses. Work is continuing on this. DTMR - We met with the Department in November. The meeting had not taken place at the time of writing, but the agenda was set and topics for discussion included: Implications for consultants following the merger of Queensland Transport (QT) and Department of Main Roads(DMR); DTMR Panel processes; contracts DMR standard conditions vs QT type contracts; Forward workload - planning etc.
FutureNet Sponsors:
LocalBuy - We are endeavouring to meet with LocalBuy to enter into discussions regarding their terms and conditions and tendering processes.
Regional Engagement On 30 October a teleconference was held with representatives from regional member firms and senior executives from the ACEA QLD Division committee. This meeting gave members an opportunity to liaise directly with the committee regarding issues that face member firms who operate outside of South East Queensland. Young Engineers Visit Schools Over the last 6 month we have been calling out for young engineers to visit schools to assist us in promoting the ACEA student DVD and teaching notes, called Engineering: Design Your World. Two school visits have now taken place with Joshua Goodall of Opus visiting Toowoomba Grammar School and Betsy Huang of McVeigh Consultants Pty Ltd visiting Clayfield College. More visits are being planned for early next year. 18
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state news
wa DIVISION
ACEA WA Division thanks the following 2009 sponsors:
Water Corporation Update The recently released State Budget includes $3.5 billion allocated to water-related projects over the next 4 financial years. This figure however, is based on the Water Corporation absorbing a $560 million budget reduction over this time frame. As a result of this, some planned projects have had to be deferred and “value for money” is a major focus. In particular, the FY2011/12 and FY2012/13 capital program will require reprioritisation. However, the FY2009/10 program of $1.2 billion is still the largest ever undertaken by the Corporation. Centre for Excellence and Innovation in Infrastructure Delivery (CEIID) CEIID is a cooperative alliance between key infrastructure delivery agencies, government trading enterprises and other Government bodies. It was established to improve collaboration, share knowledge and drive reform across a broad spectrum of activities associated with public works, infrastructure delivery and strategic asset management. CEIID is supported by a dedicated Program Management Office (PMO) that has been established in the Building Management and Works Business Unit within the Department of Treasury and Finance. The PMO coordinates, facilitates and supports the realisation of initiatives/programs within the CEIID program.Information regarding CEIID is available from the CEIID website: www.ceiid.wa.gov.au
The Australian Council of Built Environment Design Professions Ltd (BEDP) Update The BEDP is an umbrella group that brings together associations representing Architects, Engineers, Planners, Quantity Surveyors and Project Managers. While ACEA has decided not to renew its membership of BEDP at a national level, in WA BEDP has been very effective and therefore ACEA remains a member of the WA Committee of BEDP. ACEA Events ACEA is hosting a series of seminars relating to managing in turbulent times. The first of these – Legal Issues, was held last month and reviewed the legal issues most likely to confront Directors and Senior Management. A team of specialist lawyers from Jackson McDonald provided an overview of topics including: Managing and Protecting Intellectual Property, Contract Management, Dealing with Insolvent Suppliers/ Clients, Corporate Governance and Workplace Relations. ACEA also held a seminar in August titled: Maintaining Good Relations with Your Bank. Facilitated by a Client Relationship Manager from St George Bank and an accountant from Grant Thornton.
FutureNet events FutureNet Breakfast Event titled: To Schmooze or not to Schmooze, Honing your Networking Skills, presented by Shirley Anne Fortina, Principal. FutureNet end of year lunch was held on 27 November 2009 at Fraser’s restaurant. Presenting: Mick the Demotivational Speaker.
FutureNet Major Sponsors:
FutureNet Table Sponsors:
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
System of registration proposed for engineers in Western Australia The Western Australian Government investigates the need for the registration of engineering professionals. The WA Government has endorsed the drafting of a new Building Act. The proposed Building Act will provide a system for prescribing design, construction and maintenance standards of new and existing buildings, handling building applications, and for registering building industry practitioners, including professional engineers that certify compliance with relevant building standards and codes. The WA Government identified the possibility of the regulation of professional engineers, who certify compliance, as an area requiring further investigation. In July the Government put out a discussion paper examining the need to regulate engineers. The ACEA has prepared and submitted a response, which sets out a number of general principles that the ACEA believes are critical for any proposed system of registration. 1. Registration should represent a mark of professional competence (as it is for other professionals in Australia), and it should reflect the community’s interest in safety, health and welfare. 2. Central to the legislation must be mutual recognition provisions to ensure that registered engineers can practice in all states and territories and are not subjected to a multiplicity of registration fees and audit requirements. 3. Mutual recognition provisions should also be introduced with overseas jurisdictions to ensure that competent engineers can practice anywhere in Australia. Where mutual recognition provisions are not in place, there must be a fast track system for the registration of engineering professionals from overseas. 4. The registration board should be independent of any one industry association. The board must have representation from the engineering industry, including the ACEA, Engineers Australia and APESMA and have oversight of the registration system. The ACEA believes that the National Engineering Registration Board (NERB) should be the body appointed to operate the registration system. The ACEA has expressed support for a coregulatory model for adoption under a WA Engineers Act. Any registration system should 20
National Outlook SUMMER 10
be seen as a mark of professional competence (as it is for other professions in Australia). It is important for consumer confidence that the system for registration is seen to be operated and monitored by an independent body. The engineering community has recognised this potential conflict which is why the National Engineering Registration Board (NERB) was established. It is an organisation with the appropriate expertise and good standing to maintain a robust registration system and it is supported by all the peak engineering organisations. The ACEA believes that NERB should be the body appointed to operate the registration system. Allowing more than one body to operate registration systems will be confusing for consumers and could potentially lead to inconsistencies and irregularities. NERB is also well placed to ensure that registration is nationally consistent across the jurisdictions. It is important that any registration system developed follows the principle of national consistency because of the need to ensure that it supports the mobility of engineering skills. Engineers work across Australia and internationally. They are often required to work on a project basis in a number of states other than where they are based. A nationally consistent registration system based on mutual recognition also provides surety to consumers because they only need to confirm whether the engineer is registered against one national register, rather than checking a variety of local registers. This would be overly bureaucratic and would not provide any benefit to the consumer. The government should administer the legislation and appoint NERB to: Maintain an open and up to date register that includes those persons assessed as competent, i.e. the National Professional Engineers Register (NPER); and Respond to complaints from consumers relating to competence. The professional association, Engineers Australia, would continue to be responsible for setting the qualifications, the assessment of applications and auditing compliance.
The functions to be administered by government are: Undertake inquiries and disciplinary action; and Prosecute non-registered persons breaching the provisions of the legislation. In concluding the ACEA has recommended to the WA Government that any Act should incorporate the following: Adoption of a co-regulatory model, appointing NERB (operating independently from any one industry association) to administer the register and the professional association to assess competency (e.g. Engineers Australia). Contain mutual recognition provisions with all other Australian jurisdictions, so that registration is only required once and not in multiple states and territories. Contain mutual recognition provisions with overseas jurisdictions to ensure that competent engineers can practice in Australia. Where mutual recognition provisions are not in place, there must be a fast track system for the registration of engineering professionals from overseas. Capture those engineering areas of practice that are high risk in terms of community health, safety and welfare and, risks to the environment. Provide for the registration of individuals. Registration to be based on competency to practice. State that professional indemnity insurance is not required for registration. Allow the registration board to approve assessment schemes proposed by professional associations that meet the prescribed requirements (the ACEA supports those listed in the Discussion Paper). The WA Government to investigate conduct and take action against a person on the WA register. The ACEA will be holding a national forum to review its policy position in relation to national registration of engineers on 4 December 2009. A copy of the ACEA’s existing policy can be found on its website under the ‘procurement and practice’ policy issues page together with the submission to the WA Government. Nicola Grayson
PRACTICE & PROCUREMENT
ACEA Copyright Practice Note reissued to provide guidance on maintaining these important set of rights
ACEA appointed to the Commonwealth Procurement Coordinator’s Procurement Consultation Committee
Copyright law encourages creative and intellectual effort by offering some protection to the author (the owner of the work). It attempts to balance the rights of the author, in relation to their work, with the need of the community to access that work. Copyright prevents the unauthorised use of an author’s work by others.
The Commonwealth Minister for Finance and Deregulation has appointed Mr John Grant (First Assistant Secretary, Procurement Division) as the Commonwealth Procurement Coordinator.
The Practice Note has been written to provide information to members on their rights under Copyright law, including Moral Rights.
dramatic, musical or artistic work made by, or under the direction or control of, the Commonwealth, state or territory is deemed to be the owner.
It includes some general guidance on what to watch out for when entering into a contract with a client. Whilst the copyright of the intellectual property created by the consultant is retained by that consultant, this position can change if the terms of the contract contain a specific provision to the contrary.
Copyright transfer clauses are relatively common in client contracts. In reviewing tender documents for bids or expressions of interest, consultants should beware of conditions that require them to assign or transfer their copyright or intellectual property rights.
This can particularly arise in contracts with government agencies because under the Copyright Act 1968 original literary,
The Practice Note is available for download by members from the ACEA website (see: Members Only/ Publications). Nicola Grayson
The Procurement Coordinator has established a Procurement Consultation Committee comprising industry, union and community stakeholders. The Australian Industry Group and the Australian Chamber of Commerce and Industry (ACCI) have been allocated the two industry positions on the Committee and ACEA’s Megan Motto has been appointed by ACCI to represent it. The purpose of the Committee is to provide ongoing input to the Government on how it procurement policies can be enhanced. Nicola Grayson
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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 SUMMER 10
advertorial
COMPETENCE CAN TAKE THE GRAVITY OUT OF OHS IN FALL PROTECTION DEFINITIONS: Gravity – (grav’ate’) – the natural force that causes objects to move or tend to move towards the centre of the earth. Gravity causes objects to have weight. Fall – (f^) – to drop or come down from a higher place – to come down suddenly. Protection – (protek’shen) – the act or condition of being kept from harm – defending. NO ONE SHOULD BE PERMITTED TO WORK AT A HEIGHT WITHOUT DIRECT SUPERVISION UNLESS THEY HAVE BEEN ASSESSSED FOR COMPETENCE. Site Controllers and employers have a duty of care to ensure the provision of adequate instruction, training, information and supervision to ensure that their employees (and others) at a place of work are safe and without risk to health.
In relation to protection from falls this includes the provision of safe access to all parts of a place of work to which a person may require access and from which the person may fall. It also includes training in the selection, assembly and use of any provided Personal Protective Equipment and Fall Arrest Devices. CARE SHOULD BE TAKEN WHEN SELECTING FALL ARREST EQUIPMENT. It should be noted that there is many and varied equipment on the market today for use in Fall protection. It should also be noted that whilst some equipment has many uses, they will also have misuses. Equipment used on one application may not necessarily be the correct equipment to use in an alternative application. In this regard, extreme care must be taken when selecting and assembling any fall arrest equipment. All equipment used to rig a system must be compatible and fit for its intended purpose.
ALL FALL ARREST EQUIPMENT MUST BE REGULARLY INSPECTED TO ENSURE ONGOING SAFETY. Comprehensive training in Height Safety will ensure an operator is well equipped with the knowledge required to: a) Identify a fall classification/situation b) Calculate fall clearances required for various combinations of fall arrest equipment. c) Correct/incorrect use combination of Fall Arrest Equipment d) Elimination of Pendulum Effect e) Rescue techniques & reduction of Suspension Trauma f) Etc. etc. etc. For further information on Working At Heights training, or assistance in meeting your legislative obligations to control falls from a height, visit www.heightsafety.net or contact Height Safety Engineers on 1300 884 978.
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
Guide to Leading Practice for Dispute Avoidance and Resolution New research shows that the readily available opportunities to improve the performance of construction projects could annually deliver $7billion of value to the Australian economy. The direct cost of resolving disputes, including the lawyers, the experts and the parties’ management time required to resolve those disputes is estimated to range from about $560 million to $840 million per year. This puts the estimated cost of resolving disputes at about $7billion per year. These startling figures have been revealed by the Cooperative Research Centre (CRC) for Construction Innovation’s Dispute Avoidance and Resolution Research project. Other adverse outcomes of dispute-prone construction projects include delays in commissioning, reduced quality and functional performance, reduced productivity, increased operating and maintenance costs, reduced end-user satisfaction, distraction and over-burdening of the people in the project team, erosion of confidence and trust in working relationships, adverse impact on the reputation of the parties and lost opportunities for future work. Disputes and a disruptive industry environment also contribute to inflation of future project costs through higher tendered prices based on previous experience in similar work.
This represents a tragic loss to the Australian community and the Australian economy in terms of the lost opportunity to deliver real value through improved transport, health, education, and industry infrastructure and facilities. If these unnecessary costs can be avoided by appropriate attitudes and practices, the same capital pool will produce significantly more public and private infrastructure for the benefit of the community as a whole. The CRC for Construction Innovation research into Dispute Avoidance and Resolution was undertaken in conjunction with partners: Brisbane City Council; Curtin University of Technology; John Holland Group; Leighton Contractors; Queensland Government Department of Main Roads; Queensland Government Department of Public Works; RMIT University; Thiess; and University of Newcastle. and leading industry associations: Association of Consulting Engineers Australia; Australian Procurement and Construction Council; Civil Contractors Federation; and Australian Constructors Association. The CRC convened the Dispute Avoidance Taskforce to oversee the project and provide expert industry knowledge and insight, Chaired by Tony Barry, Chief Executive, Asia Pacific, Aurecon.
Taskforce members were former building and construction industry Royal Commissioner, the Honourable Terence Cole AO RFD QC, and representatives of the Australian Procurement and Construction Council, Civil Contractors Federation, Australian Constructors Association, the Association of Consulting Engineers Australia, Dispute Resolution Board of Australia, Queensland Transport and Main Roads, and Main Roads Western Australia. The project was established following the recognition and acknowledgement that disputation is causing significant damage to project end users, clients, developers, contractors, subcontractors and consultants. The aim of the project is to identify and communicate to key industry stakeholders recommended strategies to create a lasting culture that supports proactive methods to avoid disputes between clients, contractors and other industry stakeholders and where these cannot be avoided to manage disputes more effectively, quickly and at a lower cost. The research has culminated in the publication of a Guide to Leading Practice for Dispute Avoidance and Resolution. The Guide is intended to be a practical tool that can be used across the industry, by clients, constructors and sub-contractors, and by large, medium and small sized enterprises. It sets the criteria for: Identifying the causes of disputes; the role of project sponsors and the role of contractors and designers. The key criteria for dispute avoidance and management including; project definition and briefing; selecting the project team; and managing the project team. The Guide was launched on 17 November 2009 at the National Convention Centre in Canberra receiving excellent support from the construction industry. The ACEA commends this Guide to all members of construction project teams. It is the essential guide to successful project outcomes. A copy can be found on the ACEA’s website, see Policy Issues/Contracts and Liability. Nicola Grayson
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National Outlook SUMMER 10
EASY CHOICES!
ACEA IS ON YOUR SIDE
THE LATEST PATHWAY TESTIMONIAL Heggies’ range of environmental engineering and scientific services has broadened considerably over the past several years. As we continue to grow, new services are being introduced, new offices open and other consulting practices are being acquired. Our overseas work on significant international projects has also increase markedly. As a consequence, greater focus on managing the technical and commercial risks of our multi-disciplinary service delivery was required. Significant changes to our Professional Indemnity (PI) Insurance cover became necessary. We realised that professional risk management advice well beyond that
provided by a normal PI broker was required – we needed an insurance advisory service with considerable consulting industry experience. Heggies selected a broker associated with the ACEA PI Pathway, as the services provided seemed an ideal match. The broker was able to ensure continuity of cover, broadening the scope of cover and negotiating a reduced premium. Their contract review service and ongoing staff risk management training have proven invaluable to our business, enhancing the professional standard of our client contractual relations and improving the quality of our service delivery.
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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.
CONTRACTS AND LIABILITY
New Commonwealth Government Liability Risk Assessment Guide The ACEA has been working with the Commonwealth Department of Innovation, Industry, Science and Research (DIISR) on an initiative to develop a toolkit for Federal procurement officers on risk and liability, which would include a model indemnity clause for use across Commonwealth agencies. This has been an important collaboration between industry and the Commonwealth to get a better understanding about the allocation of risk and liability in government contracts. As a result a new Commonwealth guideline, Liability Risk Assessment Guide for Financial Management and Accountability Act Agencies. The guide has been developed following a series of meetings that the ACEA has held with the Department of Industry, Innovation, Science and Research over the last 12 months in which we raised and evidenced the ongoing problems with risk allocation in Commonwealth contracts. The ACEA has also formed a strong partnership with other professional service industries who have also been lobbying Government on these issues. Importantly, the guide has been signed off by the Departments of Defence, Finance and Deregulation, Human Services, and ComCover.
The guide is in three parts: Part 1: A risk assessment guide to assist procurement officers through the liability risk assessment process; Part 2: Case studies to assist in showing procurement officer how issues may arise in different contracting situations; Part 3: Model liability clause that sets out an explanation of what the supplier will be liable for under the contract (i.e. fault based indemnity clause with proportional reduction for the Commonwealthâ&#x20AC;&#x2122;s contribution to the loss). The case studies illustrate how liability and insurance issues may arise in procurement processes and be resolved using the liability risk assessment process. The case studies include a simple procurement of goods (value of goods $30,000); a more complex procurement with greater risk exposure; consultancy involving professional standards legislation; a venue hire contract; a simple consultancy contract; and a contract for the provision of financial services. The model indemnity is a step forward in terms of standardising Commonwealth contracts and striking a fair and reasonable balance between the contracting parties. The success of the guide will be judged on the level of take up by the procurement agencies. The ACEA believes that the guide must be supported by a communication strategy and training for Commonwealth procurement officers. Overall the ACEA congratulates the DIISR for its work on the guide and looks forward to continuing to work towards a better understanding of risk and liability allocation in contracts. A copy of the document can be downloaded from the ACEA website, see Policy/Issues/Contracts and Liability. Nicola Grayson
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National Outlook SUMMER 10
Guide to five key areas of risk in consultantsâ&#x20AC;&#x2122; appointments Five common risk issues found in all professional service appointments are the client; fee; scope of services; resources; and the professional services agreement. The ACEA, through its participation in the FIDIC (International Federation of Consulting Engineers) Risk and Liability Committee, has assisted in the development of a short guide to examine these areas of risk, which should be addressed at the outset of any project.
The Client It is important to assess the risks to a project that can arise directly from a clientâ&#x20AC;&#x2122;s competence, attitude to ethics and desire for an equitable relationship. Fees There are significant risk for a consultant who agrees to carry out services or undertake a defined scope of work at a fee that is insufficient to allow for the adequate provision of intellect and experience and to make a fair and reasonable commercial profit. Scope Proactive risk management can be achieved by properly assessing and clearly defining the scope of services in the appointment. A poorly described, vague or ambiguous scope causes uncertainty, misunderstanding, fee risk and has the potential to lead to disagreement and protracted disputes. Resources Resource risk is intimately connected with the risks associated with fees and scope. It can be summarised in its worst-case as not enough of the right people doing the right job. Agreements Key risks need to be considered when entering into agreements for the provision of professional services. Each section of the guide seeks to provide guidance on how these risks can be managed in order to facilitate successful project outcomes. Copies of the guide can be purchased from the FIDIC website www.fidic.org, see Bookshop/Risk Management/Five Key Areas of Risk. Nicola Grayson
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They want me to certify what? All too often we see consultants signing certificates in relation to services outside their expertise and items outside their actual knowledge. The time has come for some reminders of the basic concepts in relation to certification. Some of the major culprits for requiring inappropriate certification are local authorities and government bodies, who often require consultants to certify construction work on the assumption that the consultant is attending the site daily and has the expertise and authority to inspect the work. Government bodies and local authorities also tend to use a “one size fits all” approach to certification and require consultants to certify matters with reference to legislation that does not apply to them or the services being provided. The reluctance of authorities to amend standard form certificates leads to consultants having little choice but to sign inappropriately worded certificates that could expose them to liability. Signing a certificate should never be a formality, so before you reach for your pen to sign the next certificate that crosses your desk, ask yourself the following questions: Does my consultancy agreement require me to sign the certificate? Am I required to sign the certificate in accordance with legislation, rules or regulations? What can I do to minimise my liability under the certificate? Is my liability under the certificate covered by a professional indemnity insurance policy? Has my professional indemnity insurance advisor reviewed the certificate for me?
Contractual Issues Generally certificates are provided to clients pursuant to a contractual requirement; therefore consider the following: Look for the specific clause that refers to the certificate. If there is no contractual requirement to sign the certificate, then you could object If there was no agreed wording, then you may have some ability to negotiate the terms of the certificate If the form of the certificate produced to you is the same as the one that was attached to your agreement then, you may have little chance of amending it at a later stage. Risk Management Issues It is important to only certify matters within your actual knowledge. Generally this means that you are certifying your professional services. You should also aim to avoid absolute language in your certificates such as “I hereby certify that the building is free from all construction defects.” Qualify your statements wherever possible, with references to dates and documents. In addition you may wish to consider the following: Never provide certificates to third parties, particularly financiers Aim to have all ambiguous terminology deleted and temper the language in the certificate to accurately reflect what you are able to certify Qualify statements about construction compliance with design as follows: “I hereby certify that the construction as observed by me on 1 October 2009 generally complies with the general design intent of my drawings” Try to limit the number of certificates you provide and avoid having payment for your services conditional on the provision of the certificate Heavily qualify any statements you make about the services or work performed by third parties.
Insurance Issues Never certify matters outside your professional expertise. There is an argument that when consultants certify matters relating to construction work they are outside their professional expertise and therefore outside their professional indemnity insurance cover. Most professional indemnity policies will contain broad exclusions for construction related activities. Do not sign a certificate that contains words such as “guarantee”, “warrant” and “indemnify”, or one that requires you to certify “fitness for purpose.” This type of terminology may activate the express warranty or contractually assumed liability exclusion in your professional indemnity insurance policy and could potentially leave you uninsured for the liability assumed under the certificate. Generally, a professional indemnity insurance policy covers the entity and employees of that entity who perform the actual services and defines an “employee” as a natural person who performs work for and on behalf of the entity pursuant to a contract for services. Accordingly, so long as the person signing the certificate falls within the relevant definition of “employee”, the liability under the certificate should be covered by the entity’s professional indemnity insurance policy. A consultant who certifies matters for another entity through an incorporated entity (that he or she is a director of ), is not providing services as a natural person. In this situation, the consultant should make sure that the entity under which he or she trades has professional indemnity insurance that covers the liability assumed under the certificate. When a consultant is called upon to sign a certificate in their professional capacity, for and on behalf of an entity, it would be prudent/ advisable for the consultant to check their employment status and clarify that they are covered by the entity’s professional indemnity insurance policy. If, for whatever reason, they feel they may not be covered by an insurance policy, then they should seek legal and/or insurance advice as to how they should best deal with, what is likely to be, the consultant’s uninsured liability. Helen Johannsen, Risk Manager Queensland and Northern Territory, Planned Professional Risk Services
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National Outlook SUMMER 10
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In recent years Orrcon Steel has made its mark major construction and infrastructure projects, supplying its structural steel hollow sections to some of the most critical applications to support innovative design concepts. Orrcon Steel’s products facilitated the construction of the Crown and Atrium of the world’s tallest residential tower – Gold Coast’s Q1 Luxury Apartments. Our products have also played a major role in the construction of the Melbourne Sports & Aquatic Centre, the iconic Melbourne Cricket Ground, the imposing Melbourne Rectangle Stadium, key transportation infrastructures such as the Brisbane’s Inner Northern Busway, Adelaide’s Port River Expressway, and the Perth-Mandurah Railway. Orrcon Steel also managed major marine piling projects
such as Port of Brisbane’s Wharf 10 and Adelaide’s Common User Facility – Australia’s largest shiplift pier at a maritime industrial precinct. Our portfolio also encompass pipeline projects such as the 285km Bonaparte Gas Pipeline for the APA Group, 130km high sulphur slurry tailings line for OK Tedi, 200km QSN Link gas pipeline for Epic Energy, and 30km Eurobodalla water pipeline for the NSW Department of Commerce. Orrcon Steel products are precision engineered to meet the increasing demands of the Australian industry and specifiers to both international and Australian standards. We are proud to be a quality Australian manufacturer of steel tubulars that will stand the test of time, no matter what the application.
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SUMMER 10 National Outlook
29
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
Renewable Energy Target – Government actions to achieve a 20% share by 2020 Australia certainly has a lot of work to do in achieving a higher percentage of renewable energy being produced and purchased. Whilst China and India produce 14.2 per cent and 30.1 per cent respectively of their total primary energy supply from renewable energy sources, around 8 and half per cent of Australia’s energy currently comes from renewable sources1. A Council of Australian Governments (COAG) review into the Federal Government’s Renewable Energy Target will consider factors that may be impacting upon the Renewable Energy Certificate (REC) market in the short and long term. It appears that barriers currently exist relating to the deployment of large-scale projects in the renewable energy space. The Government have pointed to uncertainty regarding the establishment of the Carbon Pollution Reduction Scheme as potentially being the culprit and ‘harming market sentiment and impacting on the REC price.’2 In order to meet the Governments expanded Renewable Energy Target, 20 per cent of Australia’s electricity will need to come
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National Outlook SUMMER 10
from renewable sources by 2020. However the recent decline in the spot market REC price has prompted concern from some in the renewable energy industry. Whilst the focus has been on the spot market, most renewable energy projects enter into long term contracts for the sale of RECs and are therefore less subject to short term fluctuations in the spot market.3 The price of RECs is set by the market, depending on the supply of renewable energy and demand created through the Renewable Energy Target’s annual targets. In order to help the market along, the Government have launched the Australian Centre for Renewable Energy (ACRE), which it hopes will successfully deliver a $4.5 billion Clean Energy Initiative and draw together more than $560 million of renewable energy investment to help commercialise renewable energy. ACRE has been hailed as ‘a one-stop shop for Australian renewable energy businesses’, the centre will consolidate the $300 million Renewable Energy Demonstration Program;
$15 million Second Generation Biofuels Research and Development Program; $50 million Geothermal Drilling Program; $20 million Advanced Electricity Storage Technologies Program; $14 million Wind Energy Forecasting Capability Program; $18 million Renewable Energy Equity Fund; and $150 million for new initiatives, including funding from the formerly proposed Clean Energy Program. An Interim Advisory Board has been set up to oversee legislation for the establishment of ACRE to be considered by the Parliament in November. Treasury modelling projects that by 2050 Australia’s renewable energy sector output will be 30 times larger than it is today, and that this will be largely driven by the expanded Renewable Energy Target and Carbon Pollution Reduction Scheme. The Government’s review will look at both short-term developments in the REC market and the factors that will determine longer-term pricing. The review is to report to COAG by the end of 2009. Caroline Ostrowski 1
House of Representatives, renewable energy (electricity) amendment bill 2009 renewable energy (electricity) (charge) amendment bill 2009 second reading speech Monday, 17 august 2009
2
Penny Wong media release November 2009
3
Penny Wong media release November 2009
CUTTING THROUGH RED TAPE
Reducing red tape, small things make a big difference for business Red tape or burdensome process, regulations and procedures can have wide ranging impacts for business – from disincentivising investment, to constraining business productivity and profit. On the surface it appears that red tape processes and regulation are damaging to the Australian economy, dig a little deeper and you may find it hinders our international competitiveness. Whilst red tape reduction may have been on Australian Government agendas for some years now, ACEA members are still navigating processes which are time consuming (translating to high cost) and confusing. Red tape can be a huge burden for business, or as the Property Council have put it ‘a struggle against ever-increasing regulation that kills productivity and efficiency’. Streamlining regulatory processes or harmonisation is one of the easiest solutions to reduce burden on business in Australia. Currently there are some examples of attempts by governments (and others) to address these issues. The national harmonisation of Occupational Health and Safety (OH&S) Laws in Australia is one such attempt to standardise regulation and reduce red tape burden for business. The ACEA is supportive of the principle of uniform OH&S laws, the better safety outcomes they bring and the clarity of compliance that workers and business will both have in understanding their obligations regardless of which jurisdiction they operate in. Another example of Government action in this space is the Management Advisory Committee Report1 which sought to establish a framework to promote an ongoing reduction in existing red tape, and to minimise the creation of new red tape within the Australian Government.
The Report went so far as to suggest a framework that promotes the cultural and procedural changes necessary to help to bring about an ongoing reduction in red tape in the Australian Government, including principles that will lead to efficient and effective requirements, as well as a systematic approach to their design and review. Australian states have gotten on board too with the Victorian Environment and Natural Resources Committee launching an Inquiry into the Approvals Process for Renewable Energy Projects in Victoria, which aims to identify opportunities to reduce red tape. Perhaps one of the best examples of work in this area is the Action Programme for Reducing Administrative Burdens in the European Union (EU)2. This programme even allows stakeholders to submit ideas on how to reduce administrative burdens imposed on businesses through an online system. The Commission has taken the position that regulation is important and necessary, but implementation can also entail costs. Some of these expenses are linked to legal obligations to provide information either to public or private parties. Since 2007, the Commission has been conducting a large-scale operation to measure administrative costs and reduce administrative burdens. According to estimates, it would be feasible to reduce administrative costs by as much as 25% by 2012. This would have a significant economic impact on the EU economy - equivalent to a 1.4% increase in the level of GDP.
However much work still remains, if Australia is to realise its potential as a leader in the global economy. At Built Environment Meets Parliament 2008, the ACEA and our affiliates agreed to pursue the following policy proposals to encourage a reduction of red tape for business: Adopt the Development Assessment Forum (DAF) Leading Practice model for improving the quality and speed of development assessment processes. Speed up the adoption of online development assessment across the country. Commit to modernising property laws and procedures as part of an intergovernmental approach to harmonising industry rules across the country. Adopt a modern approach to regulatory impact statements that more accurately tests the costs and benefits of proposed legislation. The ACEA continues to work on these initiatives, recognising that we have a role to play in bringing not only the problems associated with regulatory burden to governments (or others) but also the solutions to cut through red-tape. Caroline Ostrowski 1
Australian Commonwealth Management Advisory Committee Report No.7, Reducing Red Tape in the Australian Public Service 2007
2
Communication from the Commission to the council, the European parliament, the European economic and social committee and the Committee of the Regions. ‘Action Programme for Reducing Administrative Burdens in the European Union’. Brussels, 24.1.2007
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CUTTING THROUGH RED TAPE
ENGINEERING FOR THE FUTURE The Engineering Environment of Today The business environment of the engineer, and particularly the consulting engineer, has changed significantly over the past twenty years or so. These changes have been reflected in the community attitude to risk, the law of tort, the scale of commissions, client’s requirements in contracts, the adversarial approach to disputes, and the cost and duration of litigation. The Academy of Technological Sciences and Engineering (ATSE) examined the broader aspect of these trends in 2002 when it drew together a group of eminent speakers in a workshop on Living with Risk in our Society. Some of the statements were frightening – eminent jurist Sir Harry Gibbs, former Chief Justice of Australia was honest to the point of bluntness – “One risk is now certainly greater, and that is the risk of litigation...”; “... the mere fact that potential defendants are insured makes it more likely that they will be sued”; “the culture of litigation has been fostered by some lawyers, who... jumped on the bandwagon; they did not start it”; “the deficiencies of the law of negligence have now become very apparent. It favours generosity to the plaintiff at the expense (in many cases) of justice to the defendant”; “The community would benefit if it were possible to change the present unhealthy culture of blame, with its emphasis on rights rather than responsibilities.” Such was the concern that soon after, The Warren Centre, the engineering think-tank associated with the University of Sydney, convened a round table workshop to examine the effects on the engineering profession. A representative attendance of leaders of a wide variety of engineering firms and clients attended, (including construction, consulting engineers, manufacturing, and service providers), together with other eminent jurists, including Sir Anthony Mason, also a former Chief Justice. Identified by widespread anecdotal discussion was that this evolving culture inhibits innovation, and that the trend would continue unless engineers take the initiative and establish the performance and risk parameters relating to the profession rather than allow determination, through default, by the courts and the judiciary.
Professional Performance, Innovation and Risk, The Warren Centre, Sydney University, NSW 2006 T: 02 9351 3752.
1
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National Outlook SUMMER 10
Professional Performance, Innovation and Risk In 2004, The Warren Centre initiated a major project Professional Performance, Innovation and Risk, raised sponsorship of $425,000 in cash, and over a five year timeframe, surveyed and involved some 200 practising engineers from all fields in the workshopping of needs, methods, attitudes and outcomes, and produced a report, launched in November 2009, setting out its findings and recommendations. The Report may be downloaded from www.ppir.com.au, or requested from the Warren Centre1. Supporting organisations, in addition to the ACEA, were Engineers Australia (also a sponsor), The Institute of Project Management, The Association of Professional Engineers, Scientists & Managers, Australia (APESMA), and the Academy of Technological Sciences and Engineering (ATSE). The study found that the engineering profession’s existing ethical and competency standards were important, but that performance is the essential ‘third dimension’ in defining engineering professionalism which must be added. The task thereby became: How should the engineering professional’s work be carried out and accomplished and how should ethical and competency issues be addressed within a task-specific framework?
The Way Ahead This report recommends a way of defining and formally recognising how Professional Engineers interact with, and respond to, their clients, their professional peers and the community. This approach also defines and recognises how clients, professional peers and the community can gain best advantage of the Professional Engineer’s skills, knowledge and experience. A key feature of the approach is that it introduces the Warren Centre Professional Performance, Innovation and Risk Protocol (PPIR Protocol) to: Inform and guide the Professional Engineer acting individually or as a member of a team on the essentials of performance in undertaking an Engineering Task; Inform and guide all parties and stakeholders in an Engineering Task on the role and obligations of the Professional Engineer and the effective use of professional engineering services; and Defines the essentials of performance against which the ‘duty and standard of care’ of the Professional Engineer can be assessed objectively, both in prospect and in retrospect.
The report also proposes three related initiatives that together with the PPIR Protocol form an integrated Roadmap for Change: 1. The new concept of a Hazard and Risk Framework (HARF) that calls for a formal, fully integrated ‘best for risk management’ approach to recognising and delineating the hazard and risk issues and accountabilities in an Engineering Task; 2. An Australian Standard (AS.PPIR) that would become the equivalent of the PPIR Protocol as ‘best practice template’ as to what corporate clients, suppliers and users of engineering products and services should expect of themselves, of their employees and of each other, in the key aspects of any engineering task; and 3. An organised approach for the engineering industry and profession to make more effective use of the way in which the expert testimony system presently works, both to improve the standard of expert testimony and to gain recognition in expert testimony of the PPIR Protocol as the basic platform from which to assess the Professional Engineer’s duty and standard of care.
Benefits to Consultants The program of change proposed in this project is specifically designed to offer benefits to all those involved in buying, selling and using engineering products and services. It encourages innovation and responsible risk taking by assessing the benefits and risks, and sharing this knowledge with the relevant parties to a contract. It will benefit all consulting engineers independent of size or discipline. For the small to medium member firms of the ACEA who use their innovative skills to win work in a competitive market, it will enhance their reputations by adopting an open and recognised protocol at both the individual and corporate level which will engender trust with clients, give value-for-money, and result in consistent outcomes. For the large consulting firms with already well established corporate procedures, alignment will create market strength for the engineering industry through contracts based on a standardised protocol using sound professional performance, innovation and risk principles.
The Public Benefit The main elements of the Public Benefit are by making the most cost-effective use of Professional Engineers through applying their knowledge and experience to achieve for the client the optimum outcomes to the
Pumps Valves Systems ■
Engineering Task. These benefits are of course general in nature, but nevertheless their combined impact will be very material. They are: A more balanced, cost-effective working relationship between client and supplier in both the public and private sectors, leading to enhanced outcomes through the effective use of professional knowledge and experience; Greater application of engineering innovation; A fully-integrated approach to risk assessment and management leading to smaller engineering risk at lower cost; Fewer commercial disputes, better dispute resolution outcomes, less litigation; A new approach to engineering expert testimony resulting in higher standards, streamlined litigation at lower cost, and more efficient use of the courts system; Improved focus on environmental and other public interest issues; Improved protection of public safety; Better engineering workplace safety at lower cost; Wider recognition of Australia’s high engineering standards; and Increased competitiveness of Australian engineering in world markets. These principal features of the Public Benefits serve to underline that by bringing into force the proposals outlined in this report, the engineering industry and profession can raise its public profile, its economic productivity and its international competitiveness and deliver to the economy and public at large outcomes that will gain and deserve increased recognition for the vitally important role played by engineering in everyday Australian life.
The Future The Project is about to enter its implementation phase over a two year period with voluntary opt-ins by major companies and their clients with monitoring and feedback of outcomes. The Warren Centre team will act in an advisory capacity in briefing any firm and their client in the application of the Protocol, and the framework for assessing and reporting on its application. Firms interested in participating should contact The Warren Centre, Sydney University, NSW 2006, T: 02 9351 3752. John Nutt, Hon Governor, The Warren Centre, former CEO, Ove Arup and Partners, Australasia
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CUTTING THROUGH RED TAPE
Your business: why it may be less profitable than you think For consulting engineers running their own businesses, technical expertise is a given. Financial acumen, sadly, is not. With the shake up of the world’s financial markets and the choking of credit and investment, it is not surprising that consulting engineering businesses are looking closely at their fees and expenses. What they discover often comes as a big surprise. Although their businesses appear to be thriving (sales up), their true profits and cash flow are often unknowingly and slowly being eaten away, jeopardising their future. Unfortunately, many businesses mistakenly believe that ‘accounting’ profit – the simple formula of revenue minus expenses – is the only measure of profitability. What they fail to account for is economic profit, the true measure of profitability.
The hidden costs in your business How much do your services really cost? Unless you account for all your business activities, it is impossible to calculate the true cost of your services or your economic profit. A business achieves economic profit when it returns more to its investors than they would gain by investing their money in a comparable business elsewhere – their opportunity cost. Even if you are the only investor, your business needs to generate a profit greater than its cost of capital if it is to be sustainable. One way to look at this is to imagine you have a spare $100k to invest. Would you anticipate better returns from your business or the share market? Many business owners accept lower returns from their businesses compared to their share portfolios, or full time employment, in return for the flexibility their own business brings – their opportunity cost. But often unbeknown to them they are also eroding the sale value of the business, as well as depriving themselves of an appropriate rate of return. Consider too the time you take to put together a bid. Do you regard this as an expense? Sole traders through to multi-nationals rarely account for such non-tangible costs incurred by their processes, people and projects, their cost to serve. If you account only for the time you spend delivering fee-paying projects, your profitability will be skewed.
The value of economic profit When you know the drivers of your economic profit, you can accurately price your services and assess which projects will be unprofitable. For lenders and investors, economically profitable businesses offer lower risk and a potentially better return on investment. Economically unprofitable businesses, on the other hand, find finance hard to come by, have to pay more for it, and have difficulty getting a good price when they come to sell. Consequently, an economically profitable consulting business is not just about current revenue and future projects. It is about how you manage your business’ performance, inside and out.
How much is your business wasting? Measuring economic profit requires that you look at your financial reports in a slightly different manner. One of the reasons consulting engineers overlook economic profit is because it is not typically calculated in normal financial reporting. Audited accounts, for example, account for interest payments but not ROI.
Here’s the good news Although there is no single measure which will tell you everything, if you manage the magic four measures you will be able to ensure that your business is generating economic profit and creating wealth for you as an investor. Tracking your financial KPIs means you can monitor your business’ costs, accurately price your services, and overcome inefficiencies. The Magic Four Measures are: 1. Gross profit 2. Operating profit 3. Activity ratio 4. Return on capital employed. And remember, an economic profit of $0 is good! It means your business has met market expectations for the average consulting engineering firm and your: Clients are happy you did the work Staff are happy they have been paid Equity investors (you) are happy that you have a return on their investment which aligns with the market average Lenders are happy their interest is being paid. If your economic profit is more than $0, even better; the equity investors can get a higher than market rate of return. You will be happy to know you are creating true wealth and have a sustainable business.
John Swete Kelly is a Principal of WHK Horwath EIS. John is also the ACEA’s course facilitator for Managing your Business for Economic Success. To learn more or register for this course, please visit www.acea.com.au 34
National Outlook SUMMER 10
CUTTING THROUGH RED TAPE
NATIONAL OHS HARMONISATION REDUCING THE REGULATORY BURDEN The business community has long been citing OHS reform as one of the key drivers in reducing the regulatory burden that business operators face. For consulting firms, especially those who operate in multiple jurisdictions, business is hindered by an inconsistent commercial environment due to inconsistent OHS laws, especially specific designer duties of care. Although multi-state businesses make up less than 1% of businesses, generally they are larger businesses and account for an estimated 29% of employment. The ACEA believes that where present variations in OHS legislation between jurisdictions exist this has led to a number of issues which are summarised below:
1. Red Tape The most common reported cost of the current arrangements comes from the issue of red-tape. In other words, the cost to those businesses that operate in multiple jurisdictions and who have to comply with numerous OHS legislation requirements. In 2005 the ACEA undertook a member survey to identify the cost of compliance incurred by the consulting engineering industry. A sample of small, medium and large consulting engineering firms were asked to identify their estimated costs per annum in complying with unnecessarily burdensome, complex, redundant or duplicate regulations. The results, which were put in a November 2005 submission to the Regulatory Taskforce (Reducing the Regulatory Burden on Business), showed the following: sole traders and small firmsâ&#x20AC;&#x2122; (firms with a staff of up to 50) incur on average $40,000 per year each in unnecessary compliance costs. medium and large firms (firms with staff of 50 plus) incur on average $180,000 per year each in unnecessary compliance costs. across the ACEA membership this is estimated as a loss in revenue totalling $18.5 million per annum caused by unnecessary regulation.
Red-tape and compliance duplication causes an increase in the efforts by business to meet multiple requirements in areas such as reporting, record keeping, licensing, and documentation of risk assessments. These procedures are essential to support the OHS framework in each jurisdiction; however the disparity that exists in each OHS framework changes the business OHS focus from progressing safety in the workplace, to dealing with paper work.
2. Taxpayers Taxpayers inevitably bear the costs of administering, educating and enforcing OHS legislation, as well as the development, implementation and review of OHS legislation. These processes are copied in each state at different times and through different arrangements. The taxpayer ends up paying for the inconsistencies that arise in the differing processes and schedules which also creates a constant environment of legislative change. 3. Community The community does not benefit from multiple and inconsistent OHS frameworks that are in effect in each jurisdiction. This is because where differing legislation and regulations exist, business costs increase in the form of red-tape and these costs are often passed on to consumers. In the case of the consulting engineering industry this can increase costs of design products and services which are passed on to procurers of structures (i.e. clients) through higher prices. Importantly, the increase in business costs discourages business growth and employment by diverting the resources of industry from more productive uses, and deflecting their focus from their core business.
4. Workforce mobility The number of complex and over-lapping sets of OHS laws reduces the mobility of the workforce. This is because there is a need to be trained and certified as competent for some work activities in each jurisdiction and this reduces or limits workplace mobility. The need to retrain or recertify workers that need to be mobilised to different jurisdictions to comply with different standards or arrangements is burdensome. It also raises costs for a business, is time-consuming, reduces business efficiency through lost productivity, increases business expenses and reduces profit capability. The ability of the Australian economy to sustainably grow and prosper depends on the ease of business to be able to employ skilled workers and the mobility of skilled workers to work in all jurisdictions. This will help productivity growth and strengthen our labour market.
5. Imbalance The number of different safety standards across the jurisdictions creates an imbalance for all stakeholders. For example, some states require designers of structures to ensure those who construct, maintain, repair or service the building or structure are not exposed to hazards. Other jurisdictions have no such specific duty of care. In short, the harmonisation of OHS laws in Australia will reduce the regulatory burden that business operators face. Thankfully, the Australian Government has committed to harmonise OHS legislation by December 2011. Neil Bassett
This not only puts at risk the profits of business, but jeopardise job security and wages of workers. If employment is reduced, tax revenues will decline, and welfare expenditure will increase. This does not benefit the community. SUMMER 10 National Outlook
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Mitchell fast track pipeline project
An ability to adapt to project demands and the strength of more than 30 years pipeline experience has Mitchell Water on-track to deliver Victoria’s massive Wimmera Mallee Pipeline Project in early 2010 – almost seven years ahead of the initial construction estimate. To date Mitchell Water has completed almost 8,000 kilometres of pressurised pipelines, 30 pump stations and 13 earthen storages after winning contracts to deliver six of the project’s seven stages. Stretching from the Grampians reservoirs in Western Victoria to service 36 towns and residents in an area of some two million hectares, the $688 million pipeline has seen a 17,500 km antiquated earthen channel system replaced with a total length of 8,800 kilometres of high efficiency reticulated pipeline. It’s a project borne of necessity in these dry times with just 17,000 ML of the 120,000 ML of water released in the channel system reaching its end use – a wastage rate of almost 85 per cent. “The result has come about due to the skill of our workforce, working closely with our client, Grampians Wimmera Mallee Water, the legislative authorities and key stake holders”, Mitchell Water General Manager, Rob Shelton said.
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National Outlook SUMMER 10
“Our specialist plant fleet, the pipe laying technology we have developed and our capacity to manage the survey, design and procurement into construction are key elements to our ability to fast track projects.
“Our ability to adapt to the demand of the projects - from scope of survey and design, to the procurement of materials, installation and testing for commissioning has been very good”, Mr Shelton said.
“No-one has ever built a pipeline network of this magnitude before,” he said. “We will have constructed 8,000 km or pressurised pipeline in three years since commencing in October 2006”, Mr Shelton explained.
The task consisted of laying many kilometres of steel line one metre diameter trunk mains which reduced to 711mm, 575mm and 450mm, as well as thousands of kilometres of PVC and poly pipe down to 63mm diameter for the distribution network.
“The initial construction program was estimated by government at 10 years and then revised to seven and five years and we’ve been able to achieve it in three”, Mr Shelton said. As well as using in-house pipeline construction equipment, Mitchell Water also took advantage of computer operated machine control technology. All ploughing and trenching equipment was GPS controlled to ensure pipelines are laid to line and grade, with the design information uploaded into machinery for automatic excavation. A series of GPS base stations were used due to the remoteness of some of the construction. A GIS with over 250 discrete layers of data (with a total volume of approximately one terabyte) is being utilised during the implementation of the project and has proven very efficient in managing the quantity and quality of data.
A comprehensive environmental and cultural heritage policy saw Mitchell Water also negotiate many archaeological and heritage sites and undertake an extensive community liaison process involving more than 4,000 landholders. “We’re proud to have contributed to local communities and regions, set up our offices in Horsham and won an Industry Capability Award for regional community involvement”, Mr Shelton said. “We’ve also been very mindful of environmental considerations and have reinstated the route to the complete satisfaction of the Department of Sustainability and Environment who are now using our work practice as a benchmark.” In October 2009, many towns in the region, including Horsham, Stawell and Ararat, had severe stage four water restrictions eased to stage one as a result of commissioning of Supply Systems 1 & 2 of the system.
Australia’s biggest When a regional water authority tendered a contract to build When a regional water authoritywater tendered a contract tothey build Australia’s biggest pressurised pipeline, little did Australia’s biggest water pipeline, littledo did they realise they’d get apressurised contractor who could not only the job, realise get a contractor whoseven couldyears not only dothe theinitial job, but fastthey’d track it cutting more than from but fast trackestimation. it cutting more than seven years from the initial construction construction estimation. Welcome to Australia’s biggest pipeline construction Welcomethe to Australia’s pipeline Project. construction contract, Wimmera biggest Mallee Pipeline Designed and contract, theby Wimmera constructed Mitchell Mallee Water. Pipeline Project. Designed and constructed by Mitchell Water.
Combining the experience of a staff of highly skilled pipeline Combining the experience of asurveyors staff of highly skilled pipeline project managers, engineers, and designers, and project managers, engineers, surveyors and designers, and Mitchell Water’s fleet of specialised equipment fitted with Mitchell Water’s fleet technology of specialised equipment fittedare with GPS machine control ensures contracts GPS machine technology ensures contracts are delivered withcontrol speed and grade precision. delivered with speed and grade precision. Letting Mitchell Water construct the Wimmera Mallee project Letting Mitchell construct the Wimmera Mallee project shaved years offWater the construction time, saved millions of shaved years off the construction time,affected saved millions dollars and delivered water to drought familiesofand dollars and delivered to cent drought affected and farmers across almostwater 10 per of Victoria in families record time. farmers across almost 10 per cent of Victoria in record time.
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SUMMER 10 National Outlook
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CUTTING THROUGH RED TAPE
ACEA meets the Australian Taxation Review “Henry Review” Senior Policy Drafters to discuss the industry’s recommendations to reduce taxation red tape The ACEA has held discussions with the Henry Review senior policy drafters to put forward our recommendations for a simplified taxation regime in Australia. Recommendation 1: Tax incentives for Infrastructure The shortfall of Australia’s infrastructure has been well documented. Bottlenecks at the ports, congestion on roads, struggling public transport, inadequate rail systems and straining electricity networks have all undermined Australia’s growth potential. The global recession has put a new emphasis on the long-term benefits of investment in infrastructure. This development of infrastructure will help to expand Australia’s productive capacity, build Australia’s international competitive advantage, and develop our cities and regions, as well as improve our standards of living. There is an immediate and economic need to attract more investment from the private sector. Public sector investment will not offset the shortfall from private sector investment. To achieve this, the Commonwealth should offer incentives through the tax system similar to previous efforts where the Federal Government has offered concessional tax treatment for infrastructure projects. Therefore, the following tax incentives should be considered: 1. Reintroduction of the concessional tax treatment enjoyed for interest received from debt finance provided to certain infrastructure projects before 14 February 1997, i.e. The Australian Infrastructure Borrowing Offset Tax Scheme (IBOTS). 2. Continue to tax income from capital (i.e. dividends, interest and rent) and income from labour at the same statutory marginal rates of personal income tax, i.e. tax dividend income at lower rates of tax or tax all income from capital at a uniform rate lower than the top personal marginal rate of tax for income from labour. 3. Harmonisation and overall reduction in the suite of charges, duties and taxes affecting the cost of projects to investors. 4. Lift restrictions on the use of tax losses in infrastructure investment. The flexibility to carry back losses against future gains would provide investors with some incentive to finance infrastructure projects. 5. Introduction of a tax depreciation regime on the market value of infrastructure assets acquired from government.
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National Outlook SUMMER 10
Recommendation 2: Improve intergovernmental efficiency Improve intergovernmental efficiency through simplification of the system of horizontal fiscal equalisation (HFE). The ACEA’s suggested model is that: Territories & Tasmania continue to receive more generous contributions given their limited capability to raise revenue & different spending needs, and All other States receive a share of GST based on either: i. Per capita population ii. Performance across certain indicators such as productivity. This model would improve the ability of State Governments to meet expenditure responsibilities and enhance the effectiveness of the intergovernmental agreement on the reform of Commonwealth-state financial relations. In addition, it would allow for state governments to undertake meaningful taxation reform.
Recommendation 3: No FBT on child care Presently, child care is not subject to Fringe Benefit Tax (FBT) when the employer provides the child care on its business premises. However, if the employer pays for child care provided on different premises, then it is subject to FBT. The ACEA proposes that all childcare services provided by an employer should be exempt from FBT. Current rules in regard to FBT on child care discriminate between those firms that are physically able to provide child care on premises and those who cannot. The removal of FBT on child care will allow employees and employers to come to mutual agreements on family friendly working arrangements which will result in increased workforce participation by allowing for more parents to return to work.
Recommendation 4: Harmonise payroll tax Employers who operate across multiple jurisdictions experience significant inefficiencies because of the requirement to comply with differing payroll tax schemes. At present, there are differences in the definition of what encompasses salaries, wages, employees, and contractors; in state and territory legislation.
The ACEA proposes that the harmonised payroll taxation system adopted by New South Wales and Victoria adopted on 1 July 2007, should be rolled out nationally across all jurisdictions.
Recommendation 5: Carry back of losses to offset earlier gains Under current rules, tax losses incurred in the current financial year can be carried forward indefinitely for use against future taxes that may be owed. However, this presents a timing constraint on realising the “tax benefit” of the capital loss. Allowing the carry back of losses would provide enhanced cash flow for those entities most in need. It will also improve loss utilisation and improve incentive for taking on risk. Recommendation 6: An Education and Training Tax Concession The ACEA proposes an Education and Training Tax Concession, at the rate of 125%, for employers who spend more than 2% of payroll on education and training activities per year. This would complement the tax incentive given for Research and Development. The concession would compensate business at a rate of 125% of every dollar that exceeded the 2% threshold. It would also strengthen incentives for employers to invest in the skills and productivity of their employees. Recommendation 7: Green Depreciation The ACEA recommends a tax incentive for building owners to refurbish buildings to be more energy efficient, also known as Green Depreciation. Green Depreciation is a form of accelerated depreciation for buildings that meet a specified environmental standard. This would apply to existing non-residential buildings. This would bring about a rapid reduction in the environmental footprint of the building sector. The Henry Review is due to be delivered to Government before the end of the year, with the Government due to respond in early 2010. The ACEA will continue to engage with Government on these important recommendations. Nicola Grayson
REDUCING RED TAPE IN INFRASTRUCTURE SERVICES
Windows save greenhouse gases
In September 2009, the Productivity Commission (independent Government research and advisory body who focuses on economic, social and environmental issues) released a report titled The Annual Review of Regulatory Burdens on Business: Social and Economic Infrastructure Services Research Report. The report identifies specific areas of Government regulation that: were unnecessarily burdensome, complex or redundant; or duplicate regulations or the role of regulatory bodies, including in other jurisdictions. The key points of the report show that regulation of the social and economic infrastructure services sector is especially heavy compared to other areas and this arises because: regulation is used to promote competitive behaviour where natural monopolies exist, for example, telecommunications and energy; of considerable government funding of service delivery, for example, aged care; there is information asymmetry with service users, for example, medical services; some service recipients, for example, the frail and aged and young children, are seen as vulnerable and requiring protection; many businesses in the sector operate across jurisdictions, for example, transport and energy retailers. The report also shows that a number of industries in the social and economic infrastructure sector are subject to review or reform activity and that it’s important to ensure that these reforms are implemented efficiently and effectively in a way that reduces the regulatory burdens on industry. In addition, reform relies on cooperation between governments and that any reforms must move beyond high level agreement on guiding principles to genuinely reduce the regulatory burden at the individual business level. The report was created using submissions from interested stakeholders which helped the Commission identify areas for reform which have the potential to deliver productivity gains to the economy as a whole. Overall the report made 42 recommendations. For more information or a copy of the report please visit: www.pc.gov.au. Neil Bassett For your information and reference, the social and economic infrastructure services sector accounts for 33 per cent of Australian GDP ($338 billion) in 2007–08. Of the relevant industries, construction contributed the largest share, 7.9 per cent of GDP ($82.1 billion), followed by health care and social assistance with 6.3 per cent ($65.4 billion), while information media and telecommunications contributed the smallest share, 2.3 per cent of GDP ($23.9 billion). This sector is also a significant employer, accounting for 43 per cent of overall Australian employment in May 2009 (over 4.6 million persons). Of this, health care and social assistance is the most significant employer, accounting for 11 per cent of overall employment (over 1.1 million persons), followed by construction with 9.1 per cent of overall employment (984 000 persons).
Professor John Bell
Effective glazing and window frames could help alleviate Queensland’s growing reliance on energy-chewing air conditioners, said a Queensland University of Technology researcher. Professor John Bell, from the QUT Faculty of Built Environment and Engineering, has researched how different window options can increase the energy efficiency of Queensland homes and decrease carbon emissions, while saving the homeowner money on heating and cooling costs. “Air conditioners contribute significantly to greenhouse gas emissions, and it is expected that by 2014, almost 60 per cent of Queensland homes will have these appliances,” Professor Bell said. “But what people may not know is there are commercially available advanced glazing alternatives that can help to greatly reduce the need for air-conditioning.” Professor Bell’s team researched four typical styles of houses in Queensland, including the single-storey brick home, the raised single-storey timber Queenslander, the double-storey brick house and the three-storey townhouse. “The greatest savings of energy and money were between 25 and 45 per cent in all houses, which were achieved with a double glazed window made up of a layer of tinted glass, a gap of air and a layer of glass which has a special clear insulating coating, called low-e glass,” he said. “This can be quite an expensive option, but significant energy and greenhouse reductions ranging from 11 to 32 per cent can also be achieved with 4mm low-e single glazed options in either aluminium or timber framed windows, which are much cheaper and could be of significant value for the retrofit market for existing houses. “For example, a Queenslander in Maryborough could save $130 in heating costs a year by switching to double glazed windows or $95 with 4mm single glazed windows.” The research, titled The Role of Advanced Glazing in Queensland Homes: Reducing Electricity Load and Greenhouse Gas Emissions was commissioned by the Australian Glass and Glazing Association.
ECONOMICS & TAXATION
New tax concession proposed for research and development In the 2009-10 Budget, the Government announced it would replace the existing research and development (R&D) tax concession with a new, more streamlined R&D tax incentive from 1 July 2010. The two core components of the new incentive are: a non-refundable 40 percent Standard R&D Tax Credit; and a 45 percent Refundable R&D Tax Credit for companies with a turnover of less than $20 million. Accompanying this will be a tighter definition of eligible R&D activity. The ACEA has welcomed the Government’s ongoing support for R&D and the efforts of consulting businesses working in the built and natural environment to achieve innovation and technically sound project outcomes through the most cost-efficient methods. Consultants will invariably encounter technical aspects of the project that require innovation and new technologies to overcome the complexities being faced. In addition, consulting companies are required to operate in such a variety of location-types under a host of different conditions that are often unpredictable. This presents consistent complexities that ensure that innovation is absolutely pivotal to proficient and technically sound project outcomes.
In the past there has been too much focus on measures assisting the development of new technologies in the small hightech segment of the economy and too little on fostering economy-wide innovation and technology diffusion. According to Innovation Australia, to be eligible for the concession, all projects must contain at least one systematic, investigative and experimental activity (SIE). It is important to note that the term SIE comprises the following aspects: innovation or high levels of technical risk, which are carried on for the purpose of acquiring new knowledge or creating new or improved materials, products, devices, processes or services. The ACEA would assert that there is most certainly considerable innovation and high levels of technical risk for consulting engineering firms engaging in R&D. There is a realistic possibility that technical complexities could lead to project failure. Therefore, support from the Government is welcomed by the ACEA and its members as they strive to acquire new knowledge and formulate new processes in the delivery of their services. The Government’s support in the area of R&D is critical to the success of not only the consulting industry, but a host of other industry sectors that fundamentally depend upon innovation.
The ACEA would assert that there is most certainly considerable innovation and high levels of technical risk for consulting engineering firms engaging in R&D. There is a realistic possibility that technical complexities could lead to project failure. Therefore, support from the Government is welcomed by the ACEA and its members as they strive to acquire new knowledge and formulate new processes in the delivery of their services.
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National Outlook SUMMER 10
The ACEA’s response to the Government incorporates the following views: The new R&D incentive should retain the existing exceptions to the general rule that eligible R&D activity must be conducted in Australia, where the activity benefits Australia. The new R&D incentive should not consider whether Intellectual Property from an eligible activity is owned in Australia. It is recommended that the Guide to the R&D Tax Concession be clarified to express more clearly that contractual transfer of IP rights does not affect the eligibility of companies to apply for the incentive. The contribution of ‘supporting’ R&D activities or that of dual role activities should not be capped. If some restriction is required, this could be achieved through a change in the current definition so that the supporting activity must be ‘predominately’ for the purpose of supporting a core R&D activity. Innovations in ITC software that provide innovative solutions or adaptive processes should remain eligible for the incentive. The introduction of a Federal Government funded Education and Training Tax Concession to boost the incentive for employers to invest in the skills of their employees. A copy of the ACEA’s submission to the Government is available from the ACEA website, see Policy/Policy Issues/ Economics and Taxation. Nicola Grayson
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skills & resources 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
Planning Australia’s engineering workforce future Planning a workforce future for the nation can be a difficult task, especially considering that prediction and speculation is required. Skills Australia have determined that instead of predicting one future for Australia, it will offer the nation three modelled scenarios or ‘worlds’ that may eventuate to the year 2025. It will come as little surprise to the ACEA’s members that in all three different worlds that were modelled, professional, scientific and technical services skills were projected to grow the fastest and most consistently. Two of Skills Australia’s scenarios “Open Doors” and “Low Trust Globalisation” envisage an industry and occupational structure that is driven by a greater global openness, with Australia being more trade-exposed in the traditional sectors of mining and agriculture as well as high-end services. The third scenario has been labelled “Flags” and sees a protectionist response and a greater move to domestic self-sufficiency. The differences that were revealed exist in both the volume and the composition of skills because the scenarios imply alternative futures for economic growth, industry structure and employment growth coming from workforce participation and migration. Based on the increasing propensity to hold qualifications in a job, the modelling found that in 2025 the percentage of the population with a postschool qualification would vary from 75 per cent (under the high-productivity growth ‘Open Doors’ scenario) to 71 per cent (under the lower growth, protectionist ‘Flags’ world). Currently some 60 per cent of employed people hold a post-school qualification, up from 55 per cent in 2001.1 In analysing a response on how to address workforce planning for each of the three alternate futures, engineering skills were among those found to be the highest “risk occupations.” The criteria to determine the highest risk occupations involved identifying if the skills are specialised, have a long lead time to develop them, have a good fit between training and job obtained, the skills are currently in short supply and causing bottlenecks in supply chains, generating significant community costs, or a risk of not meeting government priorities. As engineering and related skills address all of these ‘high’ risk indicators, Skills Australia have proposed that these are among the occupations that governments should focus on in their future planning. 42
National Outlook SUMMER 10
It is now proposed that a risk based approach to target an increase in skills in certain occupations should occur. Occupations within the design, engineering, science and transport professions were found to have high occupational fit and to require extensive study in higher education (four years or more). The specific skills highlighted in the Discussion papers include: Air and marine transport professionals, architects, designers, planners and surveyors, engineering professionals and natural and physical science professionals. The evidence offered within the Workforce Futures papers (the Papers) is consistent
with the ACEA’s views that there is a current and ongoing shortage of engineering and related skills in Australia due to their being a high unmet demand for these skills over an extensive period of time. The ACEA will continue our consultations with Skills Australia to ensure that a risk based approach to addressing engineering and related skills shortages results in relevant outcomes for member firms. Caroline Ostrowski 1
Skills Australia Workforce Futures Discussion papers www.skillsaustralia.gov.au
Strong increase in job growth predicted by DEEWR for the Architectural, Engineering and Technical Services sector In the five years to February 2009, Architectural, Engineering and Technical Services experienced employment gains in the order of 57,900 new jobs. Furthermore it is predicted that in the five years to 2013-14, job gains are expected to be 19,5001. Are the university sector, industry and governments ready to help deliver these skills to the nation? The ACEA have been engaging many strategies simultaneously to achieve growth in engineering numbers. Currently our long term strategy seeks to increase the proportion of the population with engineering and related skills through: Supporting a national primary school science education curriculum that is experiential and experimental to provide students with positive science experiences that they will carry through to further schooling and careers.
A high quality national science and mathematics secondary school curriculum which includes engineering principles, alongside a national engineering elective. Promotion of engineering careers, by highlighting the exciting, varied and rewarding careers available, as featured in the ACEA’s Engineering Design your World DVD and classroom presentations by engineers. A part time distance mode engineering degree through Open Universities Australia to enable those in regional/ remote Australia, in full time work, or time poor candidates to be able to pursue an engineering degree. Presence at University careers fairs and the ACEA’s Graduate Guide. Supporting better articulation between VET and higher education. Making Work Integrated Learning better for the student and easier for the host firm.
skills & resources
Skilled Migration Change - Market salary rates On 14 September 2009, the Worker Protection Act 2008 came into effect. The new Act enhances the integrity of the framework for the sponsorship of non-citizens seeking entry to Australia for the purposes of work. Employers who sponsor a 457 visa holder who had their visa granted before 14 September 2009 are required to pay the visa holder in line with market rates from 1 January 2010. If a 457 visa holder, granted a visa before 14 September 2009, works in an occupation where the market rate is below the MSL the visa holder was being paid, there is a requirement to pay this visa holder the MSL for the duration of the visa.
The introduction of market salary rates is part of the wider package of reforms that came into effect on September 14. The overriding principle of the reforms is parity in the workplace between overseas and Australian workers. This is demonstrated by the new sponsorship requirement that temporary (long stay) (subclass 457) visa holders are employed under the same terms and conditions as an Australian citizen or permanent resident undertaking equivalent work in the same workplace.
Employers who sponsor a 457 visa holder who had their visa granted before 14 September 2009 are required to remunerate the visa holder in line with market rates before 1 January 2010. If a 457 visa holder, who was granted their visa before 14 September 2009, works in an occupation where the market rate is below the MSL and the visa holder is
The requirement to pay subclass 457 visa holders the Minimum Salary Level (MSL) is in the process of being phased out. A new market rates system now applies for all 457 visas granted.
Targeting specific pockets of environmental skills needs by working with Government and related industries on the Energy Efficiency Skills Committee. Forming an alliance with Engineers Australia, the Association of Professional Engineers Scientists and Managers Australia (APESMA), the Australian Council of Engineering Deans (ACED) and the Australian Academy of Technological Sciences and Engineering (ATSE) to drive a truly collaborative and broad approach to increasing engineering and related skills in Australia. Working as a part of the Australian Construction Industry Forum (ACIF) to obtain funding for labour force mapping to determine exactly how many engineers and related professionals and trades people will be needed for projected works. Working with Skills Australia to determine the most efficient and targeted national response to increasing engineering skills to meet industry and government demands.
being paid the MSL, there is a requirement to continue to pay this visa holder the MSL for the duration of the visa, and not at the market rate. For all 457 visas granted from 14 September 2009, the Temporary Skilled Migration Income Threshold (TSMIT) will ensure that applicants (and accompanying dependents) have the necessary financial support to meet threshold living standards in Australia. The TSMIT is not a new MSL and has no bearing on what the 457 visa holder should be paid in the workplace. In all instances the market rate must prevail. The TSMIT is currently set at $45,220. Where the market rate for an occupation falls below the TSMIT, a nomination for a 457 visa will not be approved. The assessment of the nominated salary will occur based on gross guaranteed annual earnings. Given the purpose of the TSMIT, which is designed to ensure that the visa holder can independently provide for themselves in Australia, additional guaranteed earnings can be considered towards the base rate of pay and meeting the TSMIT. This may include, for example: the payment of Living Away From Home Allowance (LAFHA) to compensate the nominated person for additional expenses incurred as part of undertaking the employment; and non-monetary benefits such as salary packaging a vehicle. Additional earnings will only be considered in terms of the gross dollar amount rather than its imputed tax benefit. They must also be guaranteed earnings. Additional earnings exclude contingent payments, like overtime, bonuses and commissions.
Our short term strategy is focussed on achieving streamlined migration processes to allow the ACEAâ&#x20AC;&#x2122;s member firms to import (either temporarily or permanently) high level engineering and related skills into Australia to assist with nation building and industry strengthening work. The ACEA will continue to progress these initiatives to ensure that the future is one with adequate numbers of consulting engineers and related professional to allow the ACEAâ&#x20AC;&#x2122;s members to continue to grow and prosper. Caroline Ostrowski
1
Employment Outlook for Professional, Scientific and Technical Services, DEEWR, 2009
In matters relating to taxation law, including the use of LAFHA and salary packaging, advice should be sought from the Australian Tax Office and/or a registered tax agent. For further information on the reforms, see the attached link to the media release from the Minister for Immigration and Citizenship at www.minister.immi.gov.au/media/ media-releases/2009/ce09081.htm or the departmentâ&#x20AC;&#x2122;s website at www.immi.gov.au/ skilled/457-market-salary-rates.htm For direct advice please contact: Svetlana McNeil Skilled Migration Adviser to the Association of Consulting Engineers Australia Mobile: 0466 150 022 Email: svetlana.mcneil@immi.gov.au Caroline Ostrwoski SUMMER 10 National Outlook
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skills & resources
Engineering and the National Curriculum As Australian curriculum developers begin compiling material for Australia’s national curriculum, the ACEA continue to lobby the Australian Curriculum, Assessment and Reporting Authority (ACARA) to ensure that a National Curriculum for all Australian students meets the needs of employers into the future. The ACEA have teamed with Engineers Australia (EA) and Association of Professional Engineers, Scientists and Managers Australia (APESMA) in an effort to build a clear understanding of engineering into the science school curriculum. The ACEA had previously written to ACARA to raise concerns with the definition of Technology (and design) within the national curriculum science framing papers. The definition of the key term 4.2 in ACARA’s Paper states that “Technology involves the designed world, its artefacts and systems, and the infrastructure to maintain them. It has been a powerful force in the development of civilisation. Technology is a complex social enterprise that includes not only research, design, and crafts but also engineering, manufacturing, finance, management, labour, marketing and maintenance. Technology can be used to solve problems about human needs. Science knowledge has often led to applications in society in the form of technologies and their products. In turn, developments in technology have made possible new ways for scientists to explore and further understand the world.” The ACEA, EA and APESMA have advised ACARA that this definition requires altering, as in its current form the language used within the description confuses the roles of technology, science and engineering. Simply, technology is the product of engineering, engineering is not the product of technology.
Including engineering ideas in the science curricula has the potential to improve students’ problem-solving skills, and increase their interest and engagement in science. Increased engagement and proficiency of students in science will result in the pool of potential engineers and scientists being larger, more diverse, and better able to meet the national demand for a greater number of professional workers. In light of these issues EA, ACEA and APESMA have suggested the use of the following “key term” rather than the current “Technology (and design)” definition to guide curriculum development: “Engineering and technology (and design) work in conjunction with science to expand our capacity to understand the world. Science, engineering and technology have been powerful forces in the development of civilisation. Science relies on technology to explore and further understand the world. Engineers use scientific discoveries to design the technologies (products and processes) that support science inquiry and benefit human-kind.”
At each stage of the curriculum it is imperative that students are provided with knowledge and understanding of the contribution that science-related disciplines make to civilisation. This must include an awareness of the varied learning pathways and career options open to students who have a solid foundation in science knowledge, understanding, skills and values. Science-related careers must be demystified. It is critical that the curriculum in Years 11-12 solidifies students understanding of the contribution that science related careers make to civilisation. Students will need to understand that engineering is a profession involving the knowledge of mathematical and natural sciences (biological and physical) gained by study, experience, and practice, applied with judgement and creativity to develop ways to utilise the materials and forces of nature to solve practical problems for the benefit of humankind. Caroline Ostrowski
It is crucial for students to understand the role of engineering alongside and in contrast to science and technology. The ACEA, EA and APESMA hope that the curriculum writers will recognise the value of increasing the visibility and understanding of engineering alongside science and technology in the curriculum documents under development.
We have conveyed to ACARA that science is exploring nature and formulating scientific theories and principles, engineering in the context of school education can be described as the development of scientific theory and ideas into reality and technology can be defined as the bank of technical knowledge created by scientists and engineers, or the product of engineering. The ACEA, EA and APESMA believe that it is crucial for students to understand the role of engineering alongside and in contrast to science and technology; hence we have asked that ACARA reconsider the Key term of “Technology (and design).” Engineers have a hand in designing, creating or modifying nearly everything we touch, wear, eat, see and hear. Introducing engineering into the K-12 classroom connects science concepts to the everyday engineering and technology that surrounds us.
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Engineering and technology (and design) work in conjunction with science to expand our capacity to understand the world. Science, engineering and technology have been powerful forces in the development of civilization. Science relies on technology to explore and further understand the world. Engineers use scientific discoveries to design the technologies (products and processes) that support science inquiry and benefit human-kind.
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skills & resources
ACEA to continue its residential leadership program in 2010 After successfully conducting its Strategic Leadership: Service Excellence development program twice in Melbourne during 2009, ACEA plans to conduct it twice again in 2010.
The program has been run every year since 1986, and some 1500 consulting engineers have participated since its inception. This year, some 55 engineers and related technical professionals studied two detailed case studies of consulting engineering firms, examining them through lenses of marketing, resource management, leadership, human resources, financial performance, business excellence and other aspects. These detailed case studies, of real Australian firms, were examined by syndicate teams of consulting engineers following detailed discussion sessions led by the program director, Professor Danny Samson.
Sessions on ‘best practices’ in strategic management and leadership, managing decisions and resources, operational excellence, innovation and performance management, were also combined with detailed discussions of the ‘softer’ management skills areas that make a difference, namely leadership, staff management, motivation and client relationships. Program participants were able to assess their organisations against the core principles common to world’s best organisations, and from this analysis, deduce a set of focussed business improvement strategies to take away from the program for implementation. 2009 program participants gave the usual very high program evaluations, including comments such as: “Brilliant presenter, very engaging” “Great course, great people, inspirational” “Great degree of interaction between participants” “Good real life examples, all questions answered thoroughly” “Got practical ways to implement changes” “Got great ideas to implement” “Great food and facilities” “Should have done the course 10 years ago.”
I did indeed have a fine learning experience and gained a great deal from attending the course. I found the four day residential format of the course very effective and enjoyable. The content was highly relevant; my list of take-away items was comprehensive. At the completion of the course I felt inspired, and more prepared, to deal with the challenges I face as a manager.
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In addition, ACEA once again offered three scholarships to this program for small and medium sized firms. This year’s scholarship winners told of their benefits which came from the formal sessions and as much from interacting with the participants from major mature firms such as GHD and SMEC. Scholarship winners in 2009 were Katie Teyhan from Heggies, Greg Palmer from Palmer Technologies, and Grant Pendlebury from Kehoe Myers. Their written comments, post the course, included: “I did indeed have a fine learning experience and gained a great deal from attending the course. I found the four day residential format of the course very effective and enjoyable. The content was highly relevant; my list of take-away items was comprehensive. At the completion of the course I felt inspired, and more prepared, to deal with the challenges I face as a manager.” “I had the opportunity to attend the ACEA Strategic Leadership Seminar in September this year held at the Melbourne Business School under a small business scholarship. There were thirty-five participants from around Australia and New Zealand. A great mix of people and the group size allowed for good participation, casual discussion and a few laughs. The course was well run with good thoughtful discussion.” “For me it was like a “business refresh” away from the daily hurly-burly, mixing with a range of people with similar objectives but diverse views. It allowed me clear my thoughts and to focus on the business objects that are important for our company. Many thanks to Professor Danny Samson, the ACEA and all who attended.” In 2010, the program will be updated and run as a 3-day intensive residential program, in Melbourne in May and September. New Australian case studies on excellent companies and new materials on innovation and sustainable development are being prepared for the 2010 program, in addition to the fundamentals topics of marketing/ sales, service operations, leadership and managing staff for high performance, and overall business quality and excellence. Professor Samson invites enrolments from those firms who wish to make an investment in their leaders of the future! For full details and a brochure please contact the program director, Professor Danny Samson by emailing d.samson@unimelb.edu.au Professor Danny Samson
Strategic Leadership and Service Excellence: Driving Engineering Business Success
A four-day residential management course focused on business excellence for engineers and other technical professionals
COURSE DIRECTOR: Professor Danny Samson
WHEN: 13 - 15 September 2010 WHERE: Melbourne Business School PROGRAM COST: $3,850 +GST, includes full residence (private) fees*, meals, materials and full program ENQUIRIES & ENROLMENTS: Enquiries or enrolments can be made to Danny Samson P: 03 8344 5344 E: d.samson@unimelb.edu.au
OBJECTIVE: This program addresses the core issue for engineers: how to create additional value for internal and external clients, and therefore drive the service effectiveness, outcomes, volume and price of professional services up for your firm/ department. In summary, the program objective is to clearly and concisely identify for participants, the leading edge, practical business management principles and practices that work to provide a competitive edge in the engineering market place. “The program brings ‘business maturity’ to those who attend. Leadership, service excellence and taking advantage of new technologies through innovation are important for all Engineering firms. Above all else, it is critical for such service firms to keep investing in their ‘up and coming’ people, through continually developing their managerial as well as their technical knowledge.” Participants leave with an ability to analyse, understand and put into action just how to take their businesses forward. This is based on our latest research of ‘What works’ in leadership and management. Over 1200 engineers have attended this program, many of whom are now senior business leaders! Professor Danny Samson
WHO SHOULD ATTEND, PARTICIPATE AND LEARN: Senior managers and Directors Engineers of about ten to twenty years experience Next generation of ‘up and comers’ Those who buy engineering services. KEY TOPICS: Leadership of the service focused organisation Best Business Practices in Engineering The Principles of Service Excellence Advanced Service Company Practices Marketing and Differentiated Pricing Attracting and retaining the right clients Teamwork and Service Operations Strategic Business Improvement Measuring and Reporting Performance Practical Case Studies of service excellence Financial management of an engineering business Business strategy and development.
OUR THEME IS: To be as effective in our leadership and management as we are in the technical aspects of our work.
* A fee reduction is available for those staying elsewhere.
PRESENTED BY THE ASSOCIATION OF CONSULTING ENGINEERS AUSTRALIA
advertorial
Brifen Wire Rope Safety Fence Up to the Challenge... Building on its success throughout Australia and internationally, Brifen’s high performance TL4 Wire Rope Safety Fence (WRSF) continues to go from strength to strength, following a number of major fence installations along the newly upgraded Bruce Highway at Caboolture north of Brisbane. Incorporating 40 new verge and median fences, totalling some 29,000 metres in length, the new Bruce Highway fences represent the latest chapter in Brifen’s remarkable Australian success story. Interestingly, while the majority of safety barrier installations tend to focus on one primary safety issue – such as protecting vehicles from a steep batter verge, preventing collisions with objects near the carriageway, preventing ‘run off road’ incidents, or preventing median crossover incidents - the safety barrier challenge along the newly upgraded Bruce Highway at Caboolture must surely be considered as ‘…one with the lot’. Together with the challenge of steep nontraversable batters (with slopes of up to 1V:3H) along the outside edge of sections of both carriageways, the Bruce Highway design also incorporates a deep ‘V-shaped’ median with batter slopes of up to 1V:3H for drainage requirements. In addition, the fact that the major project section between Uhlmann Road and Caboolture involves widening the highway from four to six lanes in a transport corridor with a limited width meant that in several sections the large concrete noise abatement walls had to be constructed in close proximity to the carriageway. As such, the design also called for the installation of protective barrier fencing to prevent vehicular impacts with the concrete noise abatement walls along both the north- and south-bound carriageways. The Bruce Highway upgrade projects represent the final stages of the Federal Government’s $362 million commitment to upgrade the highway from four to six lanes from the Gateway Bridge through to Caboolture, some 40 kilometres north of Brisbane. The works at Caboolture incorporate two separate contracts; the $8.5 million Boundary Road to Uhlmann Road contract – which was awarded to CMC - and the $183 million Uhlmann Road to Caboolture section, which was awarded to Leighton Contractors. Stretching some 9.8 kilometres, the Boundary Road to Uhlmann Road contract section incorporated widening the median shoulder on both the north- and south-bound lanes of the existing 6-lane highway, together with the installation of 18 Brifen TL4 WRSF sections. The larger Uhlmann Road to Caboolture contract section incorporated an upgrade of the existing 4-lane highway to a motorway standard 6-lane 48
National Outlook SUMMER 10
highway, including: upgrades to bridges, interchanges and improvements bicycle and pedestrian infrastructure, together with the installation of noise abatement walls and a total of 22 new Brifen TL4 WRSF sections along the verge and median of both carriageways. Needless to say, when it came to selecting an appropriate safety barrier system for the Bruce Highway upgrade projects, engineers and designers not only focused on ‘containment capabilities’ and performance in sloping batter installations, they also placed a significant emphasis on the amount of fence deflection during an impact. Indeed, for the fences that were to be constructed adjacent to the sound walls, engineers specified a maximum fence deflection of 2 metres – a critical factor in preventing an errant vehicle from impacting the sound walls. In order to meet these strict design and performance challenges, the project’s engineers selected the high performance Brifen TL4 Wire Rope Safety Fence (WRSF) for both the verge and median installations, including those adjacent to the sound walls. Highly regarded for its ability to ‘capture’ an errant vehicle and bring it safely to a stop in both verge and median installations (including locations with steep sloping batters) Brifen fences have been directly credited with reducing the severity of literally thousands of vehicular impacts - saving numerous lives and delivering a significant reduction in both the level and seriousness of the associated injuries throughout Australia and internationally. Not surprisingly, Brifen WRSF’s ‘life-saving’ performance in the field, and perhaps most importantly, its ability to minimise fence deflection during an impact, both played a major role in its selection for the Bruce Highway upgrade projects.
advertorial
Performance Along Sloped Batters and in ‘V-Shaped’ Medians Another key factor in Brifen WRSF being specified for use along the Bruce Highway upgrade sections was its performance along sloped batters and in ‘V-Shaped’ median installations. Brifen WRSF has been used extensively on non-traversable 1V:3H slopes for almost 10 years – particularly in Sweden where the Brifen 4-woven rope ‘Slope Fence’ was developed. Batter slopes flatter than 1V:10H do not require attention, with V-shaped medians designed on these slopes posing no additional hazard to motorists. Medians designed with slopes flatter than 1V:10H are ideal in low rainfall areas. Batter slopes between 1V:10H and 1V:4H are considered traversable - although in V-shaped medians this becomes somewhat bumpy at the batter slopes increase past 1V:6H. Batter slopes greater than 1V:4H are considered non-traversable. The high concentration of rainfall and severe weather conditions prevalent throughout the Caboolture region required well designed medians to minimise road hazards. Whilst the steep batter slopes (up to 1V:3H) were an essential part of the hydraulic design, they created a hazard for vehicles that needed to be addressed for both run-off road accidents and cross median accidents. Interestingly, unlike the majority of American safety barrier installations along ‘V-Shaped’ medians, where fences are constructed “in the ditch”, the preference in Australia is to construct
the barrier along the median verge, thereby preventing the errant vehicle from entering the ditch. This is predominantly due to the fact that whilst it is easy to predict where a vehicle will initially “land” in the ditch, the trajectory of the vehicle and the height of trajectory from the initial impact point are unknown and dependent on so many variables, including: the shape of the median, the slope of the median batter, condition of the median surface (vegetated, saturated soils, etc.), the type of vehicle, and the condition of the vehicle suspension to name but a few. Not surprisingly, the success of the Brifen ‘Slope Fence’ in the field over the past decade, together with results of full-scale crash testing, and the extensive computermodelled Finite Element (FE) simulations in the USA by the NCAC (National Crash Analysis Centre) division of the FHWA (U.S. Department of Transportation Federal Highway Administration) provided clear evidence of Brifen WRSF’s outstanding performance capabilities in non-traversable batter applications. With that in mind, the Bruce Highway upgrades were designed with Brifen TL4 fences installed along the median verge of both the north- and south-bound carriageways, to prevent errant vehicles from entering the ‘V-Shaped’ median.
Another key factor in Brifen WRSF being specified for use along the Bruce Highway upgrade sections was its performance along sloped batters and in ‘V-Shaped’ median installations. Brifen WRSF has been used extensively on non-traversable 1V:3H slopes for almost 10 years – particularly in Sweden where the Brifen 4-woven rope ‘Slope Fence’ was developed.
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advertorial The Benefits of Maximising Rope-Post Interaction Whilst there are clearly a number of contributing factors (including: post design, post height, the location of the wire ropes, end anchor design and installation location), the key to Brifen WRSF’s outstanding performance capabilities during an impact undoubtedly lies within its unique patented ‘woven rope’ design that ensures the maximum benefit of rope-post interaction. The combination of the inter-woven lower ropes and the linear ‘upper’ rope delivers two energy absorbing actions, namely: the linear stretching of the upper rope; and the mechanical action of the lower woven ropes acting on the steel post and using the deformation of the posts to absorb impact energy into the fence system. In short, rather than being designed as a simple system with a primary reliance on the wire rope, Brifen WRSF incorporates a complex system of multiple-interactions between the wire rope and posts. Working together in tandem, these two energy absorbing actions result in a significant reduction in total fence deflection and fence damage during an impact. The complex interactions of rope and post ensures rapid transfer of the vehicle kinetic energy into the fence and then into the ground. Indeed, Brifen’s patented system combines the best attributes of both wire rope configurations: the straight rope to provide the initial resistance to the impact; and the woven ropes to both localise and control the impact by making most efficient use of the supporting posts. The benefits of incorporating woven ropes into the fence design is best realised on longer lengths of fence. As the fences length increases, the fence anchors have reducing influence on the fence performance. For short fence lengths (say 50 metres to 150 metres) the end anchors tend to do the bulk of the “work”. However as fence lengths
increase, it becomes very important to confine the influence of the impact locally to the area of the impact. To achieve this efficiently the rope and posts have to interact as a team. Interestingly, the extensive regime of crash testing and computer modelling undertaken of Brifen’s ‘woven’ rope design also uncovered another extremely important performance characteristic; viz: the increased rope-post interaction achieved by the ‘woven’ rope resulted in the deflection reaching a ‘plateau’ for woven rope fences with lengths greater than approximately 300m (depending on the post spacing). This ‘active region’ results from the fact that whilst the load on the parallel (top) rope is spread over the entire length of the fence through to the anchors at each end of the fence, the woven ropes ‘localise’ the tension (as a result of work having to be done to break the rope friction with the fence posts). This friction, or mechanical action, allows the stresses to dissipate over roughly 70 fence posts on either side of the impact point. The benefits of this localised ‘active region’ are clearly evidenced in the maximum deflection readings from the ‘full-scale’ Brifen crash tests and computer crash modelling - particularly for fences over 450 metres in length, and for impact speeds ranging from 80 – 110 kph. As a result of the lower interwoven ropes, rather than the maximum deflection continuing to increase in relation to the length of the fence, the deflection actually ‘levels out’ for fence lengths greater than 140 times the post spacing distance. Understandably, the size (number of posts/bays) of the ‘active region’, together with the total fence deflection, reduces for impacts of less than 100kph.
Figure 1: End-Anchor Spacing Effects on Deflection 4
Parallel System
Barrier Deflection (m)
3.5
3 Weaved System 2.5
2
1.5
0
200
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National Outlook SUMMER 10
800
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advertorial
Brifen’s patented system combines the best attributes of both wire rope configurations: the straight rope to provide the initial resistance to the impact; and the woven ropes to both localise and control the impact by making most efficient use of the supporting posts.
Highlighting the Importance of Fence Length in Reducing Deflection Together with the benefits of the woven rope design, another major contributing factor in Brifen WRSF’s ability to minimise fence deflection during an impact, lies within the design of the finished fence sections – in terms of both post spacing and the total length of each fence. The important role that the overall length of the fence (spacing between end anchors) plays in minimising deflection during an impact was a major feature of a detailedresearch White Paper by Dhafer Marzougui of the US-based FHWA/ NHTSA National Crash Analysis Center at The George Washington University entitled: “Effects End-Anchor Spacing and Initial Tension on Cable Barrier Deflection.” The White Paper is the result of an exhaustive 12-month study to investigate the influence of different installation configurations and design parameters on the safety performance of high-tension cable barrier systems. The installation configurations investigated in the study included end-anchor spacing (installation length) and the initial cable tension (static tension), whilst design parameters examined in the study included cable weaving effects (weaved and parallel systems) and the number of cables (three and four-cable systems). The study utilised available full-scale crash testing data with sophisticated Finite Element (FE) computer simulations. Models were created for two types of proprietary cable systems: one a woven configuration that uses the post and ropes to interact in a complex fashion and the other a parallel rope configuration with the posts simply supporting the ropes; in both three and four-cable versions. For each system, was modelled with a range of anchor spacings (100m, 200m, 300m, 500m, and 1000m) and two cable tensions (15 kN, and 24 kN) were developed. The White Paper concluded: “…simulation results indicate that in impacts with cable barriers, the maximum dynamic deflection is significantly affected by the end-anchor spacing. Greater end-anchor spacing leads to increased barrier deflections.” Importantly, it also found that: “…the results also indicate that the effects of end-anchor spacings are different for different types of barrier systems. The deflection of weaved cable barrier systems,
which provide higher friction between the posts and cables, reaches a maximum at end-anchor spacings of 300m. The parallel system, on the other hand, shows continuing increase in deflection beyond 1000m anchor spacings. These results lead to the conclusion that correction factors should be used to convert deflections observed in crash tests to those expected in the field where actual anchor spacings are much greater than the system lengths tested. These correction factors must account for the expected field installation lengths as well as the type of barrier system. For the weaved cable barrier simulated, dynamic deflection does not increase for installation lengths greater than 300m. However, for parallel systems, deflections will continue to increase for installations of over 1000m in length.” The White Paper also concluded that “…the simulations had demonstrated that four-cable systems have lower dynamic defections compared to three-cable systems”, and as such, “… increasing the number of cables leads to a higher number of cables engaging the vehicle during the impact and increases the chance of capturing and redirecting the vehicle.” In order to meet the Bruce Highway project’s strict maximum deflection requirements of 2 metres during a TL3 rated impact (2,000kg vehicle impacting at 120km/h), the Brifen fences constructed in areas adjacent to the sound abatement walls were constructed with a reduced post spacing of 2 metres, a maximum fence section length of 410 metres and an intermediate anchor spacing of 137 metres. These fences also incorporate a specially designed intermediate anchor that was developed by Brifen UK and LB International (Brifen WRSF’s exclusive Australian distributor) specifically for these sections. The reminder of the Brifen fences along the project – in both verge and centre median locations – were constructed with the standard 3.2 metre spacing and a maximum fence length of 1,000 metres. The fences have been constructed in an overlapping format to ensure maximum protection along the entire length of the fence.
For further information, please contact: Mr Paul Hansen Managing Director LB International Pty Ltd Phone: (02) 9631 8833 Fax: (02) 9688 4503 Email: paul.hansen@lbint.com.au
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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 Infrastructure.
COLLABORATION THE KEY TO SAFER WORKSITES Relative to other industries, the OHS performance of the Australian construction industry is poor. In the financial year 2006-07, 14,120 claims for compensation were made by employees in the construction industry. These compensation claims accounted for 11% of all serious workers’ compensation claims across all industries, equating to 39 construction workers’ families requiring one or more weeks off work due to workrelated injury or disease. In 2006-07, 50 construction workers were compensated for a work-related fatality and the rate of compensated fatalities in the construction industry was 7.8 per 100,000 workers, compared to 2.5 for all Australian industries. The construction industry supply chain is highly fragmented, with many different professional and technical inputs and a complex and hierarchical arrangement of contributors. The industry structure and culture impede an integrated effort to improve the construction industry’s performance in OHS. Traditional procurement methods, in particular the linear process of design-bidbuild, creates challenges for the consideration of construction site OHS issues during the planning and design stages.
MODEL OHS ACT UPDATE The Workplace Relations Ministers’ Council (WRMC) agreed to the release of the endorsed exposure draft of the model OHS Act for public comment at its meeting on 25 September 2009. The WRMC also agreed to a small number of variations to their previous responses to the National OHS Review recommendations, which have been included in the exposure draft of the model OHS Act. These variations have been made to ensure a consistent application of policy throughout the draft 52
National Outlook SUMMER 10
Professor Helen Lingard of the School of Property Construction and Project Management, RMIT University has been awarded one of 200 prestigious Future Fellowships by the Australian Research Council. The Fellowship will support a four year programme of research into occupational health and safety (OHS) in the construction industry. The Future Fellowship will fund a balanced and overlapping programme of research activity addressing ways to achieve greater organisational, technological and cultural integration of OHS in the delivery of construction projects. The research programme includes the following sub-projects: a quasi experimental analysis of the effect of relationship contracting within the construction supply chain on OHS; an examination of the structural determinants of safety culture and OHS performance in the construction industry; an investigation of the existence and development of shared mental models of OHS between construction industry participants in diverse and fragmented project teams; an evaluation of the potential for emerging technologies to deliver inherently safer design of product and process in the construction industry; and a comparison of the OHS performance of pre-fabricated building elements compared to traditional in-situ construction techniques.
model OHS Act and to address practical implementation issues identified during the drafting process. The ACEA OHS Roundtable has held several meetings throughout the public comment period to discuss the exposure draft and to prepare a response on a number of critical matters (public comment period closed on the 9 November 2009). The ACEA submitted its comments based on the Roundtable’s position on the exposure
The programme of research aims to inform critical improvements in OHS in the construction industry, beyond improvements already realised by technological advancement and the implementation of organisational OHS management systems. The research will investigate how to engage all contributors to a construction project in the OHS effort, how to create a unity of purpose with regard to OHS in construction project teams, and how to ensure that complexity inherent the high level of technological specialisation within the supply chain is managed to ensure that the construction industry’s processes and products deliver optimal OHS performance. The research will develop an evidence-base for the integration of OHS into the entire construction delivery process from planning to completion. The research outcomes will primarily be used by government and industry bodies, informing evidence-based policy and practice for improving OHS in the Australian construction industry. The ACEA will keep you posted on developments in this area. Neil Bassett
draft to Safe Work Australia. The ACEA also provided a Regulatory Impact Statement on the proposed designer duties for the model OHS Act. Following the public comment period submissions were collated, analysed and summarised by Safe Work Australia in November. The final model OHS Act and associated documents have now been considered again for approval by WRMC at their meeting in mid December 2009, with the model Act to be implemented by each jurisdiction by the end of 2011. The ACEA will keep you posted on developments in this area. Neil Bassett
advertorial
COONAMBLE SHIRE INCREASES PRODUCTIVITY WITH FLIP SCREEN Coonamble Council is using the Flip Screen at their Quarry to recover oversize (100mm+) rocks for gabian baskets, roadbase (20mm-) and separate clay from sandy loam. The Flip Screen is a mobile screening attachment that can be quickly and easily attached and removed from the carrier machine. It has received a multitude of awards for its unique patented inward spiralling screening action. Coonamble Shire’s Quarry Manager John Smith, says “we are delighted with what the Flip Screen is doing for us. I also like the fact it is made in Australia and exported to so many countries.” Coonamble Shire chose the E80 model Flip Screen to suit its Komatsu Excavator. Initially sold with a 25mm screen mesh, John also purchased a 35mm and a 100mm screen to allow for further screening to different sizes. John explained that it is “typically black soil country in this area.”
“The sandy loam is used for roadbase and without screening, the clay content in the sand is too high, resulting in too many failures. After using the Flip Screen the plasticity levels of the loam are reduced to an acceptable level” he explains. In addition to the separation of clay from sandy loam, they are using their Flip Screen to make a ballast-type material which is used in sullage pits and gabian baskets throughout the shire. John states “This is an additional advantage that allows us to produce this product that cannot be achieved by using our crusher.” Flip Screens are available in models to suit all sizes of excavators, wheel loaders, backhoes, telehandlers and skid steers. Standard screen sizes range from 10mm to 100mm with many smaller and larger sizes available upon request. Screen sizes can be changed in less than five minutes by one person, without tools.
For more information on Flip Screens go to www.flipscreen.net email: info@flipscreen.net or phone (02) 6931 8002.
OHS
THE ACT WORK SAFETY ACT 2008 COMMENCES The ACT's Work Safety Act 2008 came into effect on the 1 October 2009. The new Act: extends safety coverage to all people who have a worker-like relationship and visitors to the workplace; expands safety duties to all parties who control the generation of risks and who are in a position to eliminate or minimise them; places a general duty on all employers to consult all workers on matters that may affect their health and safety; provides an express right of private prosecution for unions and employer organisations; and introduces 24 strict liability offences that require the sanction of criminal penalties. The ACEA advises that new ACT designer duties are now also in effect. These duties are: Section 24 - person in control of design 1. This section applies to a person in control of – a. the design of plant or a structure that is used, is to be used or could reasonably be expected to be used, at work or at a workplace; or b. the design of a structure that is, is to be or could reasonably be expected to be, a workplace 2. The person has a duty to ensure work safety in relation to the design of the plant or structure by managing risk. If you would like more information on the ACT Work Safety Act 2008 please contact WorkCover ACT at: www.ors.act.gov.au/workcover. Neil Bassett
WORKCOVER NSW LAUNCHES SAFE DESIGN GUIDE In October 2009 WorkCover NSW launched its Safe Design Guide at an ACEA breakfast seminar in Sydney. The NSW Safe Design Guide aims to help persons who design buildings and structures to better understand that good design can contribute to safety, as well as promoting and educating designers on the benefits of safe design. The Guide has been developed in consultation with key industry stakeholders such as the ACEA, and helps provide practical advice
for those persons with responsibility for the design of buildings and structures. The ACEA believes the Guide will also be used to develop national guidance on safe design of buildings and structures once the model OHS laws have been agreed upon in the coming few months. For a copy of the Guide please contact WorkCover NSW Publications (1300 799 003) or visit their website at: www.workcover.nsw.gov.au Neil Bassett
ENGINEER RISKS OUT BEFORE IMPOSING ADMINISTRATIVE CONTROLS A recent case has highlighted that employers must, so far as is reasonably practicable, eliminate and engineer out risks before applying administrative controls. The case involved a South Australian worker who was injured after standing operating procedures were not complied with. The employee (a filler operator) was doused with 80-degree water after they turned off a number of taps out of sequence, causing a build-up of pressure in a hose which burst as a result. The Court heard that at the time of the incident, the worker was working on “Line 2”, which had not been properly risk assessed, in comparison “Line 1” had a standard operating procedure which was similar to “Line 2”.
“The administrative control contained in the standard operating procedure was inadequate and the employer did not apply as far as was reasonably practicable engineering controls,” SafeWork SA submitted. In short, the employer also failed to identify the potential for pressure to build up in the hose, which existed in both lines, the Court heard. After the incident the employer installed a one-way valve to prevent backflow of fluid from leaving the hose when it was disconnected even if there was pressure built up. The Court was told that prior to the incident the employer had been aware of its OHS duties and had in place appropriate training and induction processes. However, the breach of duty comes down to the fact that the employer had not put in place engineering controls as were reasonably practicable to supplement the administrative procedures that were in existence. This article was sourced from OHS Alerts at: www.ohsalert.com.au. Neil Bassett
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OHS
OHS NATIONAL and STATE NEWS Federal Comcare will undergo a series of improvements and will continue offering self-insurance after OHS harmonisation, the Federal Government announced in releasing the Comcare review report. Australians who are part of emergency response teams deployed by the Federal Attorney-General’s Department will automatically be covered under the Safety, Rehabilitation and Compensation Act 1988 for workers’ compensation purposes. The Safe Work Australia Council released four reports on work-related injuries, finding selfemployed and full-time workers have lower injury incidence rates than their employee and part-time counterparts. The introduction of the Fair Work Act has expanded the scope for unions to exercise their entry rights for OHS purposes. ACT Work Safe Act 2008 commenced 1 October 2009. NSW Employers that engage expert contractors have no common law duty to provide safe work method training for tasks within their specialty, the High Court ruled. A judge of the NSW Industrial Court brought to the attention of WorkCover NSW that all the individual directors prosecuted by the authority over the last three years were from small companies. Employers could be responsible for their workers’ safety outside of their worksites after an employer was fined $110,000 over an OHS incident in a building it had no authority to access. NSW’s work-related fatalities have fallen by 10 percent since 2006/07 and by 41 per cent since the State workers’ compensation scheme began, according to WorkCover’s Statistical Bulletin 2007/08. WA WA government announced a “major shakeup” of the State’s mine safety system by implementing a new regulatory framework for resources safety.
Vic Civil liability provisions came into effect with other amendments to the State Occupational Health and Safety Act 2004 on 1 July, making OHS discrimination claims easier to prove. An equipment manufacturer has been convicted and fined after providing an employer with “completely unsatisfactory” training and “confusing” printed instructions. Qld The Queensland Government introduced new safety standards for swing-stage scaffolding, amending the State’s Scaffolding Code of Practice. Queensland has launched a state-wide OHS program to help employers strive for “zero harm at work.” A Queensland employer was found liable to pay workers’ compensation to an intoxicated and “out of control” worker because it had done nothing to curb their alcohol consumption. SA The SA Government commenced a range of return to work projects as part of its WorkCover Scheme reform package to help injured workers return to the workplace. Tas Workplace Standards Tasmania issued a Code of Practice for construction work induction to provide practical guidance for employers on how to meet their induction obligations under the Workplace Health and Safety Act 1995. The Tasmanian Government proposed new provisions allowing union representatives the right to enter workplaces for OHS purposes. The Tasmanian Government announced workers’ compensation reforms that will take effect from 1 July 2010. Tasmania’s workplace injuries have increased for the third year in a row, according to a statistical report.
DRILL RIG GUIDELINES PROGRESSING WELL The ACEA would like to report that the development and drafting of a Drill Rig Safety OHS Guideline is progressing well with drafting having commenced by the Drill Rig Working Committee. The Guideline aims to promote the safe operation of drill rigs in Australia through best practice information for industry. This will improve the capability and competence all stakeholders whether they own and operate drill rigs or engage drilling contractors, to efficiently and effectively mange their OHS duties. The Guideline approach taken by the committee is not to solve issues but to identify key hazards and recommend acceptable minimum controls. Diagrams and examples will be included in the guidelines to assist understanding of the issues. The ACEA believes the voluntary safety guidelines will encourage everyone in the industry to work to best practice in the operation of drill rigs. It will also help foster a culture that places a significant value on workplace safety consistently across all jurisdictions in Australia. The ACEA would like to thank the Drill Rig Working Committee and their commitment and efforts so far in drafting guidelines. For more information on the Drill rig working Group please contact Vic Executive Officer Cathryn Ellis at: cathryn@acea.com.au Neil Bassett
The information for this article was sourced from OHS Alerts at: www.ohsalert.com.au Neil Bassett
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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 Infrastructure.
SYDNEY TOWARDS TOMORROW 10+ million people by 2050 - how to make Greater Sydney the world’s most liveable city in 40 years. Sydney is an international city with a vibrant culture, strong business and economic opportunities and a strong and diverse community. Critically, however, Sydney’s infrastructure needs (in particular transport infrastructure to service both commuters and freight) have not kept pace with the rate of population growth in the Sydney basin area or with the needs and expectations of the community or industry. This trend is not only set to continue, but if we are to prepare adequately for the future, the ACEA Infrastructure Roundtable contends that Sydney should be planning now for the infrastructure required for a larger population target. Sydney Towards Tomorrow has been developed to provide thought leadership, promote community debate and prompt more
Sydney Towards Tomorrow 10+ MILLION PEOPLE BY 2050 HOW TO MAKE GREATER SYDNEY THE WORLD’S MOST LIVEABLE CITY IN 40 YEARS
ACEA INFRASTRUCTURE REPORT
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integrated and thorough planning, so that Sydney might live up to the vision of being the world’s most liveable city with a population of 10+ million by 2050. It has provided a forum for innovative thinkers from across a wide range of engineering and consulting firms to develop a plan for Sydney (the Newcastle/ Sydney/Wollongong conurbation) as the ‘City of Cities’. The plan integrates sustainability into infrastructure planning to provide a robust strategy to respond to the challenges, which is flexible and adaptable to the uncertainty of the future while maintaining Sydney as a vibrant community. Sydney Towards Tomorrow is intended to complement other plans such as the NSW Government’s Metropolitan Strategy (2005), City of Sydney’s Sustainable 2030 Plan (2008), Metropolitan Water Plan (2005), and a number of local government plans.
Sydney Towards Tomorrow identifies six key areas of priority that will help to address Sydney’s future infrastructure requirements. It advises and recommends the policy, planning and regulatory reforms required to help protect Sydney’s future growth and prosperity. Its strategic focus is on urban planning integration and transport infrastructure rather than providing a list of infrastructure priorities for Sydney. The themes targeted in Sydney Towards Tomorrow include: 1. Sustainability; 2. Planning; 3. Attractive densities and land use mixes; 4. Funding; 5. Social issues; and 6. Governance. These themes are highly interrelated and should be approached in an integrated matter. The recommendations that are put forward by the ACEA Infrastructure Roundtable in Sydney Towards Tomorrow are set out below: 1. One Plan for Sydney - Focus on quality medium density urban forms within the existing urban footprint and high density around existing transport corridors and nodes. This means an increased focus on urban consolidation and less focus on fringe development. Live, work, play communities delivered by a structure planning process that brings together all elements of infrastructure in a single spatial strategy; 2. Infrastructure that delivers carbon neutrality to Sydney via both short term sustainability based procurement and longer term sustainable planning; 3. Abolish the transport tax base and introduce a user pays system; 4. Abolish local urban councils – restructure from 42 to 11 (in the Sydney Basin) and one regional council for each of Newcastle, Illawarra and the Central Coast; and 5. Reform governance structures so that there is one body responsible for the policy, planning, safety and funding of transport infrastructure management, development, maintenance and operation across all modes.
infrastructure The Sydney Towards Tomorrow report was launched on Thursday 22nd October 2009 in Sydney. The report written by ACEA’s Infrastructure Roundtable Members following discussions with Infrastructure Australia’s Infrastructure Coordinator, Michael Deegan. Sydney Towards Tomorrow has been developed to provide thought leadership, promote community debate and prompt more integrated and thorough planning, so that Sydney might live up to the vision of being the world’s most liveable city with a population of 10+ million by 2050. The report has received significant exposure in the press, including the front page of the Sydney Morning Herald (23/10/09).
The engineers... They have touched on the vexed issue of planning, demanding a complete overhaul. Weekend Advertiser, 24 October 2009
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The Association of Consulting Engineers urges to government to retain the tolls and invest the proceeds in new works. The Financial Review, 23 October 2009
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The ACEA would like to take to thank all of the contributors to report. Tom Pinzone, GHD Pty Ltd (Chair) Stephen Barrett, Golder Associates Pty Ltd Erin Cini, Kellogg Brown & Root Pty Ltd Roger Collins-Woolcock, Cardno (NSW) Pty Ltd Paul Davis, Hyder Consulting Pty Ltd Patrick Fernandez, Aurecon Australia Group LTD Luke Fisher, Kellogg Brown & Root Pty Ltd Jill Hannaford, GHD Pty Ltd (Workshop Facilitator) Geoff Hardy, The Peron Group Colin Heath, Kellogg Brown & Root Pty Ltd Colin Henson, Arup Pty Ltd David Kinniburgh, GHD Pty Ltd Peter Prince, Sinclair Knight Merz Pty Ltd Dan Reeve, SMEC Australia Pty Ltd Ed Rogers, AECOM Australia Pty Ltd Sebastian Smyth, GHD Pty Ltd Ross Speers, Opus International Consultants David Stuart-Watt, Parsons Brinckerhoff Australia Pty Ltd (Deputy Chair) Bruce Tanner, Arup Pty Ltd Peter Tonkin, GHD Pty Ltd Colin Tull, Hatch Associates Pty Ltd
Members are encouraged to read the Sydney Towards Tomorrow report, which can be found on the home page of the ACEA website at: www.acea.com.au. Neil Bassett SUMMER 10 National Outlook
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Legal Outlook
Developing an effective Risk Management Plan: The primary purpose of any Risk Management Plan is to identify, mitigate and manage the particular risks that may reasonably come about in the delivery of services. As with a number of others professional service providers, the complexity of the Risk Management Plan will depend on a number of factors: these could include the size of the business operation, the jurisdictions in which services are provided, the size and cost of projects and the client. The types of risks requiring identification can also be varied and can include a number of statutory risks (internal and external) and contractual risk. An effective Risk Management Plan must be well structured and in the writers view follow a risk based approached, that is the risks specific to the subject business must be identified and properly evaluated in order that processes can be designed and implemented in the management and mitigation of the identified risks. Further, the operation of the Risk Management Plan must be monitored and reviewed to ensure its continued effectiveness. The Australian Standard, AS/NZ 4360:2004 sets out in detail the approach to risk management. The main elements of this approach can be summarised as follows: 1. Establish the Context: Provide information as to the objective, the stakeholders , key elements and other relevant information. This could be in the format of an introduction and context section of the Plan. An short form example of the structure of the this first element of the Risk Management Plan is: The purpose of this Risk Management Plan is to identify and manage the risks that our business may reasonably face in the provision of consulting engineering services in Australia or other countries. This Risk Management Plan will also document the controls and systems to address those risks to the business. < Enter any other detail relevant to the business e.g.: the structure, types of clients and projects, the number of employees, the external environment and relevant stakeholders, the internal environment and relevant stakeholders, any other information relevant to the business >
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2. Identify the risks: What are the risks and how they can occur. For example: Business risk factors can be measured using various criteria. Risk factors that we may reasonably face are identified as follows: (i) our client types and our contractual obligations; (ii) Professional Liability; (iii) Statutory risk internal and external environment; and (iv) Jurisdictional risk. < include descriptions for each identified risk > 3. Analyse the Risks: Consider what controls are in place, the likelihood of the situation occurring, consider if there are any â&#x20AC;&#x153;red flagâ&#x20AC;? triggers which could signal trouble on the horizon, the consequences of such occurrence and the cost to the business. This element of the process may be documented with the risk assessment. 4. Assessing the Risks: The risks are evaluated and ranked. The risks can be ranked as high, moderate or low, or additional ranking can be applied. A risk assessment matrix can be formulated for simpler documentation of the assessment and ease of reference. 5. Treating the Risks: This part of the Risk Management Plan documents the systems which have been formulated to manage and mitigate the impact of an adverse event. For example it could include the following procedures/systems: (i) Systems to analyze and manage project risks (this would include Risk Management Plans in respect of specific consulting projects undertaken by the Engineer; (ii) Processes to manage Professional Liability; (iii) Processes for your business operations, including any reporting requirements (e.g. ASIC, ATO); (iv) Processes to manage contractual risks; (v) Relevant Employee programs; (vi) Risk Training programs for management and staff; (vii) The Risk Management Plan is subject to Board approval and oversight; and (viii) The appointment of a Risk Management officer for the business, who oversees the operation of the plan and provides reports at regular intervals.
Monitor and Review In order for the Risk Management Plan to remain effective it requires ongoing monitoring and review. Changes in the profession or the introduction of new laws or standards may result in the initial Plan becoming out dated. On going review is required to identify new or emerging risks and to formulate and implement the necessary controls. Depending on the size of the organisation the appointment of a risk management officer may be necessary. Communication and Consultation On going consultation and communication with identified stakeholders is an important element of the Risk Management Plan. Communication and consultation with stakeholders is required at various stages of the risk assessment process and risk management systems. A Time for Review? If you have not reviewed your Risk Management Plan recently, then this article may serve as a timely reminder to carry out such review. At Built Environment Legal we can assist you with reviews and documenting your Risk Management Plan. Please telephone us on 02 8252 6718 for further information. Susan Isho Susan Isho is the Solicitor â&#x20AC;&#x201C; Director of Built Environment Legal, Sydney. This article is provided to ACEA members for general information purposes only. It represents a summary of the subject matter and should not be relied on as a substitute for legal or other professional advice.
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 6718 Fax: 02 8252 6719 Email: lawyer@belegal.com.au Website: www.belegal.com.au
SUMMER 10 National Outlook
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brisbane celebrates The resplend
Excellence in Australian engineering was on display at the ACEA Annual Awards night held in brisbane on Friday, december 4. Over 400 representatives from Australia’s top consultancies gathered to receive recognition for their outstanding work during the year from their peers.
ent ball room d Central, Br
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The Judges comments for the Project of the Year winner, Inner Northern Busway (INB) - Queen Street to Upper Roma Street project included: “AECOM and Coffey Geosciences developed innovative measures to overcome significant and complex technical challenges including difficult tunnelling conditions within the constraints of strategic inner city buildings and services to deliver the project to strict budget and time constraints.” “The project provides an excellent example of how a close collaboration between alliance participants has added value and delivered an outstanding project with major community benefits.”
isbane
Along with AECOM and Coffey Geosciences’ triumph, over 30 consulting engineering firms won either gold award, silver award or certificates of recognition. Apart from the peak award, other Australian consulting firms won in the various project categories.
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The Project of the Year l to r: Paul Ree d (ACEA President), the AECOM and Co ffey Geotechnics win ning teams and Javier Baldor (BST Glo bal - Principal Sponso r)
thentic B
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BG&E won the gold award in the Building Category for their work with the Index Building, located in Dubai, UAE, with its development of a world class iconic building;
Parsons Brinckerhoff, Hyder Consulting, CW-DC (part of the Aurecon Group) the gold award in the Transport and Civil Infrastructure Category for the Eastlink project;
Kellogg Brown & Root Pty Ltd, on behalf of Southern Regional Water Pipeline Alliance won the gold award in the Water Category for the South East Queensland Water Grid Interconnection project;
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Paul Reed (ACE
A President) an
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MWH Australia won the gold award in the Environmental Category for its Banksia Beach Water Treatment Plant project;
Waterman AHW won the gold award in the Building Services Category for its Workplace6 Commercial Development project in Sydney;
Arup won the gold award in the Specialist Services Category for the Melbourne Recital Centre & MTC Theatre project;
Kellogg Brown & Root Pty Ltd won the gold award in the Project Management Category for the Clipsal 500 Infrastructure Upgrade V8 Event Upgrade project; and
GHD Pty Ltd won the gold award in the International/Export Projects Category for its Three Delta Towns Water Supply & Sanitation project in Vietnam.
l to r: Anthony Barry (Pre sident’s Award winner), Michael Deegan (Infrastr ucture Australia), Robert Care (ARUP) and Megan Motto (ACEA CEO )
Anthony (Tony) Barry received the prestigious President’s Award. Other awards in the Special Awards category were awarded as follows:
The Education and Training Award was awarded to Parsons Brinckerhoff Australia Pty Ltd for its West Gate Freeway Upgrade project;
The Future Leader Award was awarded to Andrew Gouge, of Parsons Brinckerhoff Australia Pty Ltd; and
The Student Project Award to George Wehbe, from University of Sydney, for the student project entitled ”The Effect of Risk Quantification on the Performance of Cost Estimates for Infrastructure Projects in NSW.”
For a complete list of the 2009 Awards winners, please visit www.acea.com.au
The Arup team
r: ard l to onsor), ct Aw t Proje (Coffey - Sp n e d The Stu Dunkerley er), n en nd Steph Wehbe ( Win f Sydney) a o e Georg (University ident) s iu Dr Li L d (ACEA Pre ee Paul R
with their 2009
The ACEA also wish to give special thanks to the following 2009 Awards Judges and Reviewers: 2009 Judges: Merv Jones (Head Judge), Ken Conway, Bob Gussey, Jocelyn Jackson, Dick Kell and Dale McBean. Reviewers: Merv Jones (Head Reviewer), Wayne Costin, Tony Denham, Malcolm Gallasch, Clive Humphries, Rod Jeffrey, John Miles, Michael Nash, Bill Southwood and David Sweeting. Special Awards Judges: Pam Behncke, Professor Daniel Samson and Dario Tomat.
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THE 2009 AWARDS SPONSORS The ACEA and its member firms and clients thank the following organisations for their support
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advertorial
1300LOCATE UTILITY DAMAGE AVOIDANCE SYSTEM Traditionally underground utilities have been surveyed during or after they have been put in the ground. Whilst this has been widely accepted as the means for quality assurance and record keeping, its ability to give absolute identification and accuracy has FAILED. As Pipe and Cable Locators, we are relied on heavily in the construction industry to provide accurate information as to the whereabouts of critical infrastructure before any earthworks can begin. Utility owners and contractors rely on our experience, technology and our expertise to prevent utilities from damage, so we rely heavily on the utility owners to provide us with the most accurate information possible to help us find their utilities and prevent critical infrastructure from damage. Very few companies keep on-going up to date data of utility locations within the confines of their buildings or ‘owned assets’ and if they do, no one knows how to obtain this information when it is needed. DBYD & Survey for outside boundaries are often in-accurate; worst still are undetectable or are abandoned utilities. In the 2008-09 financial years, 1300LOCATE performed 1612 locations, 1 in 3 or (537) were inside property boundaries out of the 537, 358 had no information, 179 had limited information and not 1 had accurate information.
The importance of accurate information One of Australia’s largest telecommunications owners came to grief last year when the main Fibre Optic route south of Brisbane was severed by a large excavator. The communications owner knew there was a direct laid fibre in the ground, they had their own plans, DBYD, but the 1 thing they didn’t have, Critical information such as depth, size and its EXACT location. 1300LOCATE Statistics: Out of 100 locations performed, 76 had no as-constructed drawings, 22 had basic information supplied by surveyors and only 2 had accurate information on utility locations - Alarming statistics for a developed country. Location Intelligence (LI) is the capacity to organize and understand complex phenomena through the use of geographic relationships inherent in all information. By combining geographic- and locationrelated data with other business data, organizations can gain critical insights, make better decisions and optimize important processes and applications. LI offers organizations opportunities to streamline their business processes and customer relationships to improve performance and results. LI tools leverage a variety of data sources including aerial maps, geographic information systems (GIS), consumer demographics as well
as a user’s own customer records. Popularized by business to consumer (B2C) applications, location Intelligence is experiencing rapid acceptance as there is confirmation that the value of location intelligence may be regulated by established laws and ethics depending on the specific geographic entities and scale under which they are scrutinized. Platform integration is another factor contributing to the growth, as companies can now integrate Location Intelligence directly into business operations. 1300LOCATE IS DEVELOPING NEW AND INNOVATIVE WAYS TO HELP MAINTAIN UTILITY INTEGRITY 1300Locate has combined Radio Detection, RfiD technology, Mobile Mapping and G.I.S. This powerful combination results in the ability to locate, programme, store and map in one process. The capacity to know at any given time the exact location of your utilities, ability to extract and store critical utility information on site and in house. An intelligent database with remote access for as-constructed drawings and the ability to utilise accurate information for planning and design. 1300Locate can help your company manage your underground utilities by improving your current system, installing and initiating a damage avoidance system (utility tracking), mapping your underground utilities and giving you the ability to automate an as-built at any given time and give absolute identification of utilities out in the field without the use of survey or ground engaging tools. 1300Locate has some of South-East Queensland’s largest utility owners already using this system.
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For a free field or in-house demonstration call Tony Festa on 0407 570 443 or e-mail tony.festa@1300locate.com.au
A Face Lift at 50
TerraçadeTM helps bring “main street” back to iconic shopping centre
Kenneth Myer, son of the retailing pioneer, was fired with enthusiasm for an emerging retailing concept he brought back from an American trip: the super-regional shopping centre. The Myer Emporium’s first venture, Melbourne’s iconic Chadstone Shopping Centre, opened in October 1960 and has been pre-eminent in Australia ever since. The centre is now owned by CFS Retail Property Trust and the Gandel Group. Initially an open-air centre, “Chaddy” was enclosed in the late 1960s. The wheel has turned and shopping centres are now embracing the outdoors with a more “extroverted” design. Chadstone Place, a $100 million expansion, utilised the warm, natural colours and design flexibility of Terraçade, Austral BricksTM lightweight terracotta façade system, “to create a point of difference with this precinct,” explains Andrew Mackenzie, project director for architects The Buchan Group, “to put it in a Main Street environment with Main Street componentry such as street lighting and a substantial landscape to give it a softer edge”. Construction was carried out over an existing carpark, which placed load limitations that precluded conventional walling solutions. The Terraçade system’s light weight not only ticked that box but gave the project a raft of other pluses. “We chose Terraçade because of the variation in texture and colour that allowed us to create the look of a series of individual buildings along the ‘Main Street’ façade,” Mackenzie explains.
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Low ongoing costs were also a factor. “(Terraçade) is a prefinished product. With an alternative product such as lightweight cement sheeting you have to apply a finish and then paint it and it then becomes an ongoing maintenance issue as that deteriorates,” Mackenzie contends. “In contrast, Terraçade is prefinished – so what you see is what you get – and doesn’t have the maintenance issues that a rendered or painted finish has”. The designers chose the Terraçade XP system and specified a suite of four colours (from the six available) in Smooth and Linear (ruled) finishes. The installation was carried out by C&S Lightweight for Probuild Constructions. “It was a pretty fast-moving site,” says C&S’s site manager Mick Cowan who led a team of six. “There must have been 300 people on site at any one time so it took a fair bit of planning and coordination between us and Probuild to make sure we could get certain areas done at certain times”. Chadstone Place is the first Australian shopping centre to be awarded a 5 Star Green Star Certified Rating from the Green Building Council’s Shopping Centre Design pilot rating scheme. “The execution of the Terraçade installation is fantastic,” commends Andrew Mackenzie. “All the feedback we are getting from the head building contractor and the owners is that the installers have done a great job and the product is really doing what they hoped it would do. Everybody’s happy!”
For Terraçade product information, test reports, technical data, case studies and more go to www.terracade.com.au or call 1300 881 712 (within Australia) or 0800 AUSTRAL (New Zealand).
Alucobond® Appointed Exclusive Terraçade Distributor Austral Bricks has announced the appointment of Alucobond Architectural as exclusive distributor of Terraçade in Australia, New Zealand and Thailand, commencing 1 January 2010. “Terraçade has been specified and installed into some amazing and iconic buildings in the past few years, often alongside Alucobond, and Alucobond Architectural looks forward to further increasing the brand’s profile and desirability to designers in 2010 and beyond,” says Alucobond Architectural CEO Bruce Rayment. The basis of the Terraçade system, developed in Australia by Austral Bricks, is a large-format terracotta tile that is attached to rails fastened to the underlying building structure. The tiles are self-finished and the two Terraçade systems have been fully tested to all relevant Australian Standards. The complete range of Terraçade tiles, mounting systems and accessories will be available from Alucobond Architectural offices and warehouses in Sydney, Melbourne, Brisbane, Adelaide, Perth, Auckland and Bangkok.