National Outlook Summer 2011 by awardmagazine

jonathan cartledge Transporting Australiaâ&#x20AC;&#x2122;s Future - A Call to Action

summer 2011

jonathan caRtledge Preserving the Principles of Successful Alliancings

nelson de sousa

Revised AS 4122 Contract Now Available

Jonathan Russell Paid Parental Leave: The Basics

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Contents SUMMER 2011

P8.

Q&A With the president consult australia appoints new national president jamie shelton

p10. Transporting Australiaâ&#x20AC;&#x2122;s future - a call to action Australian governments must back new ways to secure infrastructure funding. Jonathan Cartledge

P16. Are we seeing the whole picture on infrastructure? In the not so distant past, the provision of engineered infrastructure (roads, ports, canals, water networks, communication networks) was seen, discussed, treated and taught as a goal in its own right. Ivan Mareels

P24.

Successful contracting Negotiating consultant contracts is all about trust and the relationship between the two parties. Tony Horan offers 10 tips for effective contracting. Tony Horan

P26.

Columns

From the President

From the CEO

Consult Australia News

Transporting Australiaâ&#x20AC;&#x2122;s Future

Infrastructure

Sustainability

Practice & Procurement

Contracts & Liability

Skills & Resources

WHS

Economics & Tax

Finance

Techonology State of Play 42 Techonology - Corner

Energy Recycling

Energy Efficient Corner

Recruitment Corner

State News

RedR

Awards

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

DECEMBER 2010 With this edition of National Outlook, we are celebrating the release of the second major thought leadership paper from Consult Australia. It presents some very important messages to Government and the private sector about what our industry sees as the way forward for financing of major transport related infrastructure. It is an excellent example of the powerful thinking and ideas from within our member firms that are providing services to the built and natural environment. The document entitled Transporting Australia’s Future follows on from our first paper entitled Sydney Towards Tomorrow. Once again, Consult Australia is attempting to provide leadership to Governments and others and to stimulate real debate and the pro-active development of policy that has the long term interests of the country in focus. I am sure you will join with me in applauding the efforts of those personnel from within our member firms who have contributed their time and considerable efforts to the production of this important paper. Through the efforts of our Infrastructure Roundtable we have been able to identify, assemble and co-ordinate the thoughts and ideas of leading practitioners from across our industry. At the same time, however, I would like to thank and congratulate our National Office policy team led by Jonathan Cartledge and also our CEO Megan Motto for the excellent work they have done in bringing all the individual contributions together to form a well structured paper that will, I am sure,

influence political and private sector thinking across Australia.

industry has to, yet again, initiate action to reverse this worrying trend.

The production of these thought leadership papers represents a significant investment by individual firms, their willing staff and the Association. It is therefore essential that the final documents are configured and produced to achieve maximum impact and to add the most value to the community in which we all work. I am sure you will agree that this has been achieved in the case of Transporting Australia’s Future.

On a personal note, this edition of National Outlook represents the final opportunity for me to provide a message from the President as the Association welcomes Jamie Shelton as it’s new President for the next two years. I have certainly enjoyed the opportunity to represent our industry and to work with the National Board, the National Office Team, the State Managers and their Committees. I have had excellent support at all times and I am confident this will continue for Jamie into the future.

Other recent activities have included further discussions with various parties including the Minister for Housing & Works in WA to progress the Registration of Engineers agenda in conjunction with the National Engineers Registration Board. NERB is progressing its agenda with the support of Engineers Australia, APESMA, Consult Australia and IPWEA. An informative brochure has now been developed and is being distributed to provide additional background information on the registration process.

Paul Reed Consult Australia Outgoing President

Consult Australia is also representing a view to the Victorian DTF that the focus on procurement via competitive TOC processes is not in the best interests of all parties in all circumstances. Our position is consistent with that of the construction industry. This is a significant issue and one that I believe deserves our focused attention in coming months. In addition, it is apparent that the issue of levels of Professional Indemnity insurance cover for projects has again become an issue. There are currently many examples of inappropriate levels of PI cover being demanded by clients and it is clear the

National Outlook Editor Megan Motto Communication & Production Coordinator Brandon Vigon Advertising Enquiries Brandon Vigon (03) 8844 5822 *112 Email: brandon@nationaloutlook.com.au

National Outlook is produced by Consult Australia. Phone: (02) 9922 4711. Website: www.consultaustralia.com.au and MediaEDGE Communication Australia. Phone: (03) 8844 5822. Fax: (03) 9824 1188.

Mixed Sources

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.

President Paul Reed Chief Executive Megan Motto National Operations Manager Julia Lemercier Director of Policy Jonathan Cartledge Policy Adviser Jonathan Russell Policy Adviser Nelson de Sousa Events Manager Nicole Pusic Designer Voltaire Corpuz Education & Training Coordinator Daniel Condon Finance Yingying Lin Executive Assistant (CEO & Policy) Kerri Clifford Executive Assistant (Operations) Morgan Bailey Immigration Officer Svetlana McNeil Editorial Submissions GPO Box 56, Sydney NSW 2001 National Outlook © 2010. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, internet or otherwise, without the prior written permission of the publishers. While every effort has been made to ensure the accuracy of the information in this publication, the publishers accept no responsibility or liability for any errors, omissions or resultant consequences including any loss or damage arising from reliance on information in this publication.

National Outlook summer 11

from the ceo Megan Motto is the Chief Executive of Consult Australia

DECEMBER 2010 I write my column this month having come back from Melbourne where we celebrated in fine style at our 2010 Awards for Excellence. Even after 10 years with the Association I continue to be awed by the amazing work our members do, and this year’s winners were no exception. Your continued commitment to making the nation and the world a better place for generations to come makes me proud to represent you and this industry. The weekend was also a time to bring our members together at a series of important meetings. These started with our AGM, where we honoured Dermot Small from Victoria with Life Membership for his outstanding contribution to the Association over many years. The AGM was followed by Congress and Board meetings over the Friday and Saturday. These were extremely significant meetings for the organisation, as we contemplated a range of reforms for Consult Australia in the areas of governance, services, marketing and membership. These reforms are both necessary and timely as we work to embody the vision of an expanded Consult Australia membership. It was agreed that it is critical that we continue to professionalise the organisation in order to maintain relevance and create a sustainable future for all our members. The thing that struck me the most during all the events over the weekend was the incredible passion of our members and their strong desire to continue to build an Association of strength and credibility. Each of the participants at the Congress and Board meetings demonstrated their personal commitment to ensuring that Consult Australia grow in size and prominence, and it was a great boost for all involved to witness the level of member engagement. The decisions that were taken by the Board will be developed over the coming months in preparation for our Strategic Planning session which will take place in conjunction with the Consult Australia Conference in March. I’d like to take this opportunity to thank Paul Reed, your outgoing President. Paul achieved so much during his term, from the success of the name change to the thought leadership work and so much more, and all during difficult economic times. Paul has been a pleasure to work with and finishes his term as President with the organisation in great shape.

National Outlook summer 11

I’m looking forward to working with Jamie Shelton, your new President over the next two years to build on the legacy that Paul has left.

I’m looking forward to working with Jamie Shelton, your new President over the next two years to build on the legacy that Paul has left. I would also like to thank all of the members who sent their kind wishes and also many generous gifts for Jada Rose, my daughter who was born on the 28th October at a healthy 4kg! It is incredibly warming to realise that I have not just met many respected colleagues through my time with Consult Australia, but many fine friends. I also thank the Board and all of our fabulous staff for their support during this time. In closing, I wish all of our members, colleagues and staff the very best wishes for a safe and happy Christmas break and look forward to sharing with you a successful 2011.

Megan Motto Chief Executive

A REVOLUTION IN VENTILATION Edmonds, the world leader in turbine ventilator technology, proudly introduces the ecopower range of ventilators, now including the ecopower EP900. These ventilators are the worlds first true hybrid ventilators that will work in all conditions, even when there is no wind. They provide peak performance with remarkably low energy consumption. ®

Rates determined for the following parameters: o • Stack height = 3m • Temperature difference 10 C • Flow rates calculated according to AS4740

Effective ventilation is important for all workplaces to provide suitable comfort and air quality conditions. Natural ventilators have performed this function for nearly 80 years. However they lack reliability due to their dependence on favourable environmental conditions. These natural ventilators also have performance limitations; e.g. they cannot increase ventilation rates to meet peak needs. ecopower ® is the next generation in reliable, high performance, energy efficient ventilation. This Australian patented invention combines German electronic commutating (EC) motor technology with Edmonds’ world renowned Hurricane ventilator design. The motor is mounted in a direct drive configuration, with the bearing system of the motor acting as the bearing for the ventilator. This radical design concept allows the ventilator to be driven by wind only, or by wind and electric power simultaneously. ecopower ® has demonstrated a greater ability to extract heat than conventional natural ventilators.

Key benefits of the ecopower ® are: ● Can be controlled by various means; e.g. temperature, time, wind speed, humidity, gas concentration etc.; ● Has no ‘fan and motor assembly’ in the throat. Without this obstruction, flow rates can be increased by around 40% in wind driven mode; ● Has low noise levels, less than 50dB(A) at 3m, which offers very quiet operation; ● Even the high performance EP900 only weighs 30kg, making the whole range easy to handle and install; ● Uses 240VAC single phase power, which means no significant electrical rework or new power supply. The ecopower ® offers extraordinary electrical energy efficiency, which, when coupled with the high performance and low noise, makes it an ideal choice of ventilator for a wide range of applications.

Rates determined for the following parameters: • Stack height = 3m • Wind Speed = 10.8km/h o • Varying temperature difference (range 3–15 C) • Flow rates calculated according to AS4740

For further information contact Edmonds on: Phone: 1300 858 674 Fax: 1300 852 674 Email: sales@edmonds.com.au Web: www.hybridvent.com.au

ecopower ® Model

EP400 EP600 EP900

Maximum Exhaust 3 Rate m /hr 2400 4280 10000

Power (W) 68 116 260

Specific Flow 3 Rate m /hr/W

BE SURE WITH

38 41 46

consult Australia news

CONSULT AUSTRALIA APPOINTS NEW NATIONAL PRESIDENT Consult Australia has appointed Mr Jamie Shelton as its new National President. Jamie Shelton is a Principal and the Sydney Regional Manager of Northrop. Jamie commenced his career with Northrop in 1988 as a graduate engineer in the Canberra office. In 1996 he became an Associate, was appointed a Principal in 1998 and was elected to the Northrop Board in 2007. Jamie is a senior structural engineer with over 20 years of experience in servicing clients and managing engineering design teams, and is valued for his innovative and pragmatic approach to building design. Jamie has had significant involvement in Consult Australia for over ten years, first as a member of the NSW Committee in the late

1990’s. He has held various roles on both the Association of Consulting Structural Engineers Australia (a branch of Consult Australia’s NSW division) and the NSW Consult Australia Committee including Secretary, Treasurer and Division Chairman. He has also been a National Director of Consult Australia since 2006. Over the next two years of his Presidency, Jamie aims to bring drive and focus to the Association which will further cement its status as the peak industry body for consulting firms providing services to the built and natural environment in Australia. Paul Reed, who has been National President for the past two years, and the rest of the Consult Australia Board welcome Jamie as Consult Australia’s new President.

q&a WITH THE PRESIDENT 1. What made you want to be President of Consult Australia? The opportunity to be involved at a national level with fellow professionals who are passionate about their work, our industry and the state of the nation. 2. What do you hope to accomplish as President of Consult Australia? To build on the great work we have been doing in the area of thought leadership and the advocacy associated with this. Some of Australia’s most challenging issues are well and truly in our area of influence; climate change, infrastructure, population growth, pricing of carbon, our fragile water resource. Our membership has a wealth of knowledge and expertise and it’s appropriate that this be given a public voice and the opportunity to influence policy direction. 3. What does Consult Australia mean to you? The coming together of professionals across the built and natural environment in a business forum that focuses on both the issues affecting and industry and the role we can play in shaping Australia’s future. It’s also by far the best networking organisation I’ve experienced. 4. It has been an ongoing challenge to increase awareness of Consult Australia membership benefits to middle management? What do you plan on doing to increase awareness? The future of Consult Australia lies with these people, and while clearly the education programs, support services and network opportunities are of immense value to middle management, they are very time poor.

We are working on ways to improve our contact with these people with the intention that we can engage directly with middle management and that the way we interact will stand apart from other organisations. We are a dynamic organisation that focuses the bulk of our services at middle management, the nature and content of which are developed and tested by middle managers. 5. How do you think Consult Australia has grown over the last 5 years? We’ve grown in a number of ways. We’ve broadened our service offering, primarily through training courses but also in an expanding suite of Practice Notes and IR support. Our National Roundtables are engaging some of the best minds in our industry to develop policy advice and thought leadership papers. We’ve established FutureNet , the cross-discipline young professional networking platform, that is a huge success across Australia. Our Policy team and CEO have become trusted and recognised advocates in Federal and state government. 6. What are Consult Australia’s plans for the future? We have a 3 year strategic plan with a focus on Advocacy, Profile Building, Education, Support services and Networking. This plan is guided by our vision to be the industry association of choice for consulting firms in the built and natural environment, and is available on our website. Two important aspects of this are; to increase our level of activity and influence in each state through our state committees and executives; to attract a broader membership from all consultant disciplines who work in the built and natural environment.

consult Australia news

CONSULT AUSTRALIA welcomes nelson de sousa to the policy team Consult Australia is pleased to announce the addition of a new staff member in the National Office. Nelson de Sousa joined Consult Australia in November as a Policy Adviser, bringing great legal and policy experience from both federal and state governments, and industry associations. Nelson will be responsible for the Liabilities and Contracts and the Workplace Health and Safety portfolios.

promote the release of the revised AS 4122 â&#x20AC;&#x2DC;Contract for Engagement of Consultantsâ&#x20AC;&#x2122; to ensure its use by both public and private sector; and continue to campaign in support of legislative amendment to expressly prohibit contracting out of proportionate liability. Nelson may be contacted via e-mail at nelson@consultaustralia.com.au

Nelson will be working: on the development of the National Safety in Design Code; to

7. What made you choose engineering as a career? The opportunity to combine my interest in building (making things) with my problem solving and mathematical abilities. 8. What was one of the best decisions youâ&#x20AC;&#x2122;ve made? To stay with Northrop since I graduated in 1987. The organisatioinal culture has embraced my development from engineer to manage to director. 9. What has been one of your biggest challenges? To balance my work and family life and still have some time for myself. 10. What inspires you? Trail blazers with the enthusiasm and energy to bring about change to improve our society and the environment. 11. What is one your of your favourite holiday destinations? Snorkelling on the Great Barrier Reef. 12. What would you like to see improve in Australia A broader view of who we are, and an openness to change 13. What is the first thing you do when you get home from work? Forget about work, and get involved in family life. With three young children its a busy time of the day.

transporting australia’s future Jonathan Cartledge is the Director of Policy for Consult Australia. Jonathan represents the needs and interests of Consult Australia member firms across the Finance, Infrastructure and Sustainability portfolios. Jonathan can be reached at jonathan@consultaustralia.com.au

Consult Australia is proud to launch a new integrated funding framework for transport infrastructure: Transporting Australia’s Future. Australia’s increasing infrastructure backlog sends a clear message that current policy will not fund the transport infrastructure we need now for a growing population and competitive economy. Consult Australia has responded to this challenge by developing a new integrated funding framework for transport infrastructure, Transporting Australia’s Future, as a win-win solution for government, business and the community. Chief Executive Megan Motto states: ‘This framework is a call to action for all governments to back new ways to increase infrastructure funding mechanisms, and to ensure Australia gets the transport infrastructure it needs. With this reform opportunity and political leadership, a fully funded, fully developed national and cities transport system, including city metros and intercity very fast train services could be implemented in two generations.’ The following pages set out in full our Call to Action to stimulate debate on transport infrastructure funding. Transporting Australia’s Future includes both this Call to Action and a longer Supporting Paper. Both are available to download at www.consultaustralia.com. au. Transporting Australia’s Future was not commissioned from a third party, but has been developed by, and reflects the specialist opinion of, Consult Australia’s Infrastructure Roundtable.

The Roundtable represents Australia’s leading firms in consulting, planning, engineering and project development including in transport infrastructure projects across Australia and internationally. Consult Australia has commenced the debate on Transporting Australia’s Future in high-level discussions with Federal and State Government agencies and Ministers to advance the case for transport funding reform.

We will continue to press our case in the months ahead. This is a long term agenda requiring both vision at and political commitment at all levels of government. Consult Australia members have expressed a strong voice in putting the case for reform and backed this up with genuine solutions, and identified the necessary first steps to see this vision become both accepted and as reality. We look forward to advancing these policy ideas in the future and will be reporting our progress in the year ahead.

This is a long term agenda requiring both vision at and political commitment at all levels of government.

National Outlook summer 11

Jonathan Cartledge

Transporting Australia’s Future Australian governments must back new ways to secure infrastructure funding - A call to action. This call to action has been prepared by Consult Australia to stimulate debate on infrastructure funding. It presents an integrated funding framework that would enable significant progress towards transport and governance reform, fund national and city transport systems, support our population growth, and deliver lasting economic benefit to Australia.

Transport, Population and the Economy

While public investment in transport infrastructure has followed population growth, it has failed to keep pace with our economy (GDP), this being partly offset by private investment. Recently, AusLink investment and stimulus response to the GFC have increased public investment, but private investment has declined. Nevertheless, infrastructure gaps persist, particularly, near and between major cities. Of significant concern, Infrastructure maintenance has not kept pace with new investment.

Evidence provided to the US Congress as part of the Intermodal Surface Transportation Efficiency Act of 1991 and again in its 2009 Reauthorisation, identified the threat that underfunded public investment can stall productivity growth. The link between economic strength and infrastructure investment has been re-asserted around the world in the face of the 2008/9 Global Financial Crisis (GFC).

Supporting Population and Economic Growth

80 Private Investment in Public Infrastructure ($B)

$10

Public Investment in Public Infrastructure ($B)

GDP ($100B)

Population (M)

30 $4 20 $2

10 0

$0 2007-08

2006-07

2005-06

2004-05

2003-04

2002-03

2001-02

2000-01

1999-00

1998-99

1997-98

1996-97

1995-96

1994-95

1993-94

1992-93

1991-92

1990-91

1989-90

1988-89

1987-88

1986-87

Failure of the nation’s transport infrastructure makes front-page news. Rail system delays, increasing road congestion, and choked ports result in loss of productivity efficiency with high social and economic costs. In today’s competitive global economy there are important implications and risks for government investment policies.

$12

expenditure ($B) GDP ($100B)

Not only does transport directly contribute to the wellbeing of Australian communities, transport infrastructure investment has significant multiplier effects, amplifying the benefits throughout the economy.

Frustrated Community Expectations The Sydney Morning Herald sponsored a non-government public enquiry into long-term public transport planning for Sydney, to inform decisions by future governments on the priorities over the next 30 years. The 2009 Inquiry reported increasing frustration in the community regarding declining levels of service, increasing congestion, unmet expectations, and yet a willingness to pay for improvements. Similar sentiments have been reported in other cities. It mirrors a mismatch between public sentiment and politicians’ perceptions of willingness-to-pay identified in the 1990s. Many city commuters have no alternatives to private travel on congested roads. Poor access to transport alternatives amplifies the frustrations of poor service quality. With arterial peak hour travel speeds declining, congestion and resultant “road rage” are on the rise.

There is more at risk than commuter and community backlash when transport breaks down. There are very real risks of stalling the economy.

population (m)

Transport and logistics represent some 14% of Australia’s GDP and accounts for some 330 million kilometres of travel made every day in capital cities. It provides access to employment, facilitates social inclusion, and allows our cities to grow. It moves 520 billion tonne kms of freight each year, supplying Australia’s industry, enabling export revenues, and is supporting our economy. Transport represents up to 8% of industry output.

Sustainability

Current Sources of Transport Revenue

Australia’s population is predicted by ABS to increase by approximately 50% to 37 million by 2040, only one generation away. This growth is higher than the long-term average that has underpinned past government infrastructure investment. Without increased investment, the increased population will result in ever increasing congestion and environmental degradation.

Government funding for transport infrastructure is mainly sourced through consolidated revenue, reflecting a political balancing between competing demands. Given other pressures on government investment, this is unlikely to change over the short term. Many “user charges” are woven into the current consolidated taxation system. Current revenue streams are mainly limited to:

Transport & Greenhouse Emissions: Climate change poses a significant threat to future generations. Transport contributes 15% of Australia’s greenhouse emissions, 87% of which are from road transport. Transport emissions in 2010 are some 30% above those of 1990. We need to change the way we use and invest in transport systems and infrastructure.

• Fuel Excise • Parking fees • GST

Diminishing Oil Reserves: Australian transport uses 46 billion litres of petroleum per year. World consumption may have exceeded production, suggesting we have passed the peak of the Oil Age, having consumed half of the world’s reserves in one human lifetime. New energy sources and a changed transport paradigm are needed to maintain the accessibility that communities and our economy require.

• Vehicle registration • Tolls and Ticket fares

Reliance on traditional fuel excise as the key revenue tool is internationally recognised as having limited longevity, with diminishing reserves and increased fuel efficiency curtailing revenues. An infrastructure funding regime based on fuel taxes has no sustainable future. While revenues from transport users cover the aggregated costs of transport, they are largely treated as taxes and a net contribution to general revenue, with no accountability to transport users who are frustrated by inadequate reinvestment in transport. There is no accounting for intangible costs of transport (e.g. congestion, greenhouse emissions, community service obligations, social equity).

Funding reform is an essential requirement in delivering transport policy and sustainable outcomes. Future Transport Investment Needs Future infrastructure investment in Australia that is planned, committed or under-construction stands at $717 billion (March 2010). Over $186 billion (26%) is identified as essential transport infrastructure. More than half of this (over $100 billion) is for government funded transport projects, including backlog projects.

The historical tools and tax-based charges currently at government disposal to raise revenue for infrastructure provision are out of date, inefficient, create false pricing signals to users, and are inadequate to fund increased accessibility and future growth. New Revenue Sources

In the last 9 years, forecast transport investment needs have increased over 300%. However, Government expenditure on transport remains about 4% of budget.

There are a range of funding mechanisms emerging around the world that can provide sound and proven revenue streams. New ideas need to be integrated with existing policy to deliver the necessary change.

The gap between forecast transport investment needs and governments’ ability to fund them, indicates that users need to contribute more, if we want to maintain an adequate level of service.

Key to this is adoption of the following underpinning objectives:

Future Transport Investment Needs ($M) (Investment Monitor) $200,000 $180,000 $160,000

Economic Efficiency

$140,000

Support Population Growth

Social Equity

$120,000 $100,000 $80,000

Financial Reliability

$60,000 $40,000

Funding Objectives

Environmental Stability

$20,000 Dec 2009

Jun 2009

Dec 2008

Jun 2008

Dec 2007

Jun 2007

Dec 2006

Jun 2006

Dec 2005

Jun 2005

Dec 2004

Jun 2004

Dec 2003

Jun 2003

Dec 2002

Jun 2002

Dec 2001

Jun 2001

Dec 2000

There is an increasing risk that the gap between needed investment for infrastructure and governments’ funding ability, will increase unless new transport funding is introduced.

Policy and Funding Integration

Effective Transport Delivery

Policy Transparency

The good news is that there are new funding sources that meet these objectives.

BETTER USE OF EXISTING ASSETS Infrastructure assets that are included on government balance sheets can be better used, or provide leverage to stimulate new funding: • Lazy Assets: identify balance sheet assets that are underutilised, and realise their value by sale or alternate government use; • Privatise infrastructure: sell existing infrastructure to private sector to finance new investment (e.g. Telstra, QLD ports & rail; M4); • Transit Oriented Development (TODs): recognise the need for higher density development, and focus on transport nodes to reinforce transport efficiency while achieving viable patronage (e.g. airspace development at rail nodes); • Urban Sprawl: retain existing urban footprints and increase urban densities to reduce urban sprawl in a model of multi-centred cities with reduced trip lengths; • Change Mode and Time of Travel: shift the transport focus from individual private travel to public travel in more efficient vehicles; allowing greater throughput on existing infrastructure and greater use of non-peak periods.

• I nfrastructure Bonds: Continued development of specific Infrastructure Bonds to help private infrastructure investors access large pools of retail investment funds, such as from superannuation funds. This will extend current government support of simplified bond issuance and discounts on bond interest income.

PRIVATE FINANCE Develop new sources for transport financing, including new Public Private Partnerships (PPPs) and superannuation fund investment: •D irect Tolling: Of new and enhanced existing infrastructure, this model continues the current theme of private debt/equity financed infrastructure retaining a period concession to directly charge users; •P PP Funding: Revitalise Private Public Partnerships reflecting the success of alliance infrastructure contracting, and providing rebalanced risk sharing. • L and Value Capture: As with developer infrastructure charges; with the developer financing local improvements from the increase in values.

TAXATION REFORM

Revenue Source

The Australian Government Treasury through the Henry Review has opened the door to widespread tax reform. Opportunities to restructure consolidated revenue to fund infrastructure are critical:

Existing Source

• Hypothecation: new user based revenues committed to service provision e.g. modelled on national health funding; • Full Cost Recovery: ensure that users contribute the full costs of their travel choices; • External Costs: include social and environmental consequences of travel in user charges, just as road safety is charged through insurance (e.g. economic delay charged through congestion charges, emission impact charged through carbon pricing); • Corporate Taxation: rebalance taxation treatment of capital investment (CGT and depreciation) against recurrent expenditure (operational costs) to encourage long-term infrastructure investment; • Transport Pricing: adopt appropriate technology for all transport modes to provide network-wide demand sensitive pricing to manage congestion and provide revenues for public transport.

PUBLIC FINANCE Develop financial instruments to provide government with expanded sources of funds for infrastructure investment: • Tax Incremental Financing: This allows a government entity to generate tax revenues based on increases in property values within a prescribed development area and use those revenues to fund the infrastructure and renewal projects that contributed to the property appreciation; • Developer Infrastructure Charges: As companies develop green- and brown-field sites, the inherent values of the land increase. Transport provision for the new landuse and maintenance of transport amenity for others must be accommodated, with the developer being levied accordingly; • Employer Transport Levies: Employers contribute to cost of transport in business location, based on the benefit to the employer of ready access for its employees to work e.g. levies in Ile de France; • Green Banking: Establish a banking structure that allows contribution towards environmentally sensitive infrastructure investments from community and developments, including “compensatory” investments; • Carbon Pricing: Embrace fully-fledged world-best carbon pricing protocols, including carbon price in all transport pricing initiatives, with increased transport revenues being invested in Green Banking;

Revenue Adequacy

Ease of Implementation

Economic Efficiency

Equity

Sustainability

Fuel Excise Tax Registration fee Vehicle Sales Tax Traditional tolls Development Fees Potential New Source Sell underutilised Government land/ asset Full cost of recovery through user fees and real fares Green Banks Congestion pricing Milage-based user fees Tolling new lanes Tolling existing lanes New Public Private Partnership model, sharing risk Incremental tax financing Carbon use tax

Note: All revenue from new sources to be hypothecated to transport infrastructure Legend:

Excellent Very Good

Good

Not Good

Poor

Very Poor

AN INTEGRATED FUNDING FRAMEWORK Multiple objectives with Win-Win outcomes

Cost recovery: All transport users should cover the costs that they impose, with any subsidies and cross-subsidies being the transparent result of overt policy decisions.

An integrated funding framework would provide confidence to implement national, city and regional transport plans, including metropolitan and inter-urban transit systems, reducing car and air travel and our carbon footprint.

Road pricing and real public transport fares: These will provide additional revenues, to improve existing and support new Public Transport (PT) services, reduce hidden Customer Service Obligations (CSOs) and PT subsidies, and provide efficiency gains across all modes.

Hypothecate new revenues to transport investment: Community support for funding reform will be vital. Hypothecating all revenues from new sources to transport investment in a transparent integrated framework has been shown to ensure that support.

Phase out of indirect charges: Integrated funding across all new sources would include reduced reliance on indirect taxes, improving funding transparency.

Hypothecation of new revenue

Active Transport Programs (Walk, Cycle) Health

Rail, Metro & Bus Improvements

Car User Revenue

Political Will

User pays Network distance-based charges (Economy Objective)

Mode share targets (Social, Environment Objectives) Real PT Prices (Economy Objective)

• Better Use of Assets • Taxation Reform • Public Finance • Private Finance

Less road Use/ Users (Environment Objective)

Zero Subsidy over time (Economy Objective) Higher quality PT Services (Social Objective)

Higher Quality Roads/ Services (Economy Objective)

Public Acceptance Increase Road Charges

GOVERNANCE

IMPLEMENTATION

Transport is a government responsibility, and integrated transport planning and governance remain critical objectives, linking funding to its management.

The nature of change requires both vision and commitment at State and Federal levels. An implementation plan must recognise economic, political and community issues. Implementation needs to be gradual, and ensure that individual funding initiatives do not disenfranchise existing users.

Introducing user pays, road pricing and hypothecation into main stream thinking may require rebalancing between Federal and state governments, and between state transport agencies. Reduced reliance of diminishing national fuel revenues may need to be offset by city transport policies with localised planning and revenue collection. Siloed transport agencies must give way to consolidated integrated departments of transport focused on the delivery of effective movement of people and goods.

Transport funding reform will provide a foundation for population growth and the delivery of world class transport. FIRST STEPS OF IMPLEMENTATION • Establish an Independent Standing Commission on Transport Funding Reform, including industry representation, reporting to COAG with an initial 2012-2020 progressive delivery program.

Increased charges for private transport must be matched by the provision of public transport alternatives and improved infrastructure. Lessons can be learned from the agreed COAG-endorsed restructuring of heavy vehicle pricing, with funding of pilot projects being championed by individual States, such as Tax Incremental Finance by NSW, congestion pricing by Victoria, and managed motorways by South Australia.

Consolidated Revenue Fuel Excise Registration Charges Transport Fares & Tolls Development Fees

• COAG review responsibility for capital cities transport to reflect Australian population, immigration and economic policies. • Infrastructure Australia (IA) initiate a review of transport needs and community willingness to implement transport reform. • State Treasuries and Transport Departments investigate initiatives to reform transport infrastructure funding, with State governments reviewing State agency balance sheets and accountability for State transport assets. • Broad transport funding reform and related Henry Review recommendations feature prominently in the agenda for the 2011 Tax Summit.

Efficient Use of Existing Assets Full Cost Recovery of User Charges New PPP and Tolling models Green Banking and Carbon Trading Tax Increment Financing Transport Pricing Hypothecation of New Revenue to Transport Integrated transport Funding

Transporting australia’s future

Is High Speed Rail Feasible? Consult Australia’s Transporting Australia’s Future suggests that with the right reform, a fully funded intercity very fast train network and integrated metropolitan rail networks would be achievable within two generations. As set out in the preceding pages this will require substantial reform across government, it will demand the better use of our existing infrastructure assets and necessitate radical changes to taxation, private and public financing.

study were released in October with a call for tenders commencing through November. The study will conducted in two stages with the first to be completed by July 2011 and second by the middle of 2012.

In this context it is exciting to see the Australian Government delivering on their 2010 election commitment to conduct a feasibility study into the economic benefits and financial viability of a new multi-billion dollar high speed rail network connecting the cities along Australia’s east coast. The Terms of Reference to guide the $20 million feasibility

The call for tenders will include those specialist tasks such geotechnical investigations as well as financial and economic modelling.

well as possible engineering, planning and environmental challenges. As well as determining the route alignment, the feasibility study will provide information which will help guide future public and private investment decisions, including likely demand and an estimated construction cost.

Jonathan Cartledge

The feasibility study will build on previous work by determining the optimum alignment of a high speed rail network after taking into account the needs of potential users as

High Speed Rail Study Terms of Reference A strategic study will be undertaken on the implementation of a high speed rail network on the east coast of Australia. The study will focus on identifying possible routes, corridor preservation and station options, including city-centre, city-periphery and airport stations. This will provide a basis for route development, indicative transit times and high-level construction costs. As part of the core network element at the centre of the east coast corridor, the Newcastle–Sydney ‘spine’ will be a central aspect of this work. Options for links northwards to Brisbane and southwards to Canberra and Melbourne will also be considered. Specifically the study will: • Identify undeveloped land corridors and/or existing corridors that could be considered for a high speed railway, and preservation strategies; • Identify the main design decisions and requirements to build and operate a viable high speed rail network on the east coast of Australia; • Present route and station options, including indicative construction costs and interaction with other transport modes;

• Provide costs estimates of undertaking the next stages of work, such as detailed route alignment identification and corridor resumptions; • Identify potential financing and business operating models for the construction and operation of a high speed railway; • Provide advice and options on relevant construction, engineering, financial and environmental considerations. The study will be managed by the Department of Infrastructure and Transport. It will draw on expertise from the public and private sectors, as well as international experience, growth forecasts and other contemporary data. Stakeholders will be consulted and contribute views through a formal reference group, which will include representatives from relevant Commonwealth, state and territory agencies and other key stakeholder groups. The high speed rail implementation study will by July 2011: • Identify the requirements for implementation of a viable HSR network on the east coast; • Identify strategic route and station options, including high-level costing.

This initial phase will provide a basis for consultation and inform the specific direction of a second phase, including consideration of the specific corridors, routes and associated issues to be targeted for more detailed examination. Further work from July 2011 will include: • Detailed corridor alignment identification; • I dentification of preliminary geotechnical issues; •D evelopment of comprehensive robust cost estimates for preferred options; • F urther investigation of investment and (public and private) financing options; • Detailed patronage and revenue forecasts; •C onsideration of preferred options in relation to other modes (for example, airport capacity implications resulting from diversion of air traffic to train). This final work and report will take approximately 12 months to complete and inform the Australian Government and state and territory governments’ consideration of next steps for high speed rail in Australia.

infrastructure

Ivan Mareels - University of Melbourne

Are we seeing the whole picture on infrastructure? In the not so distant past, the provision of engineered infrastructure (roads, ports, canals, water networks, communication networks) was seen, discussed, treated and taught as a goal in its own right. Presently, however, infrastructure is rightly seen from a holistic perspective as a means to deliver a service. It is readily argued that the paradigm shift has to encompass not only the purely engineered infrastructure, like a canal or a road, but also the managed natural environment, like a coast or a river. It is the combination of natural and managed environments with the engineered environment that services our society. These two, the engineered environment and the natural environment, are intrinsically

On the other hand, students must comprehend the interactions between engineered infrastructure, society and environment in ever increasing detail. Really, in today’s world no university arts student should be allowed to graduate without some formal education in technology and science, nor should an engineering student become an engineer without formal exposure to the basic legal, social and political aspects of our society.

Success in such a large scale service provision as “water for the nation” demands that the engineers designing and managing the infrastructure comprehend all the dimensions of the service challenge – ecological, economic, social and political – not just the technical and business dimensions.

intertwined and should not be separated artificially when discussing the provision of a service, such as water, transport or housing. The emphasis on service, rather than the infrastructure underpinning it, requires us to enlarge our point of view beyond infrastructure, or engineering. Indeed, a pure infrastructure point of view does not suffice to capture the notion of service. We need to include social, economic, policy, and legal aspects. Then, the picture must be enlarged further to include the environmental aspects as well, which are absolutely essential if we want sustainability to have real meaning. From an educational perspective, it is a nontrivial challenge to ensure that our curricula reflect this trend. The inherent educational trade-offs represent difficult choices. Can a formal university education provide both sufficient depth and breadth? On the one hand, there is the need to provide enough depth in rapidly evolving engineering knowledge domains.

National Outlook summer 11

The situation is further complicated because the time and spatial scales that are involved in the interaction between engineered and natural environments are large. We need to realise that humanity’s activities have grown to a scale that demands we consider (the combined effect of) engineering processes as affecting our entire planet. For example, mining moves more material than all the natural erosion processes combined and human power conversion activities release an amount of heat similar in magnitude to the impact of all tectonic processes. Humanity’s influence is such that the term Homo Geologicus describes the present state of affairs rather well.

The recent ill-fated Murray-Darling basin plan may serve to illustrate the above points. The spatial scale is essentially that of a continent. The time scales involved vary from a few thousand years to capture ground water dynamics to a few minutes to describe the behaviour of water in a brook or irrigation canal. Our national discussions on this plan came undone as we were unable to comprehend, in terms of quantitatively credible evidence, the environmental and the socio-economic aspects of the problem and the importance of the interaction between rural, urban, industrial and environmental water needs. Success in such a large scale service provision as “water for the nation” demands that the engineers designing and managing the infrastructure comprehend all the dimensions of the service challenge – ecological, economic, social and political – not just the technical and business dimensions. The same goes for our colleagues in ecology, law, economics and policy development. There is no service solution bound up in any one single domain. Engineering is only a part of the solution, and an integral part of any solution. As such, the engineers, as all professionals of the future must be adept at working across disciplines, to ensure that any realised solution is indeed fit for service.

Iven Mareels Dean, School of Engineering, The University of Melbourne

infrastructure Jonathan Cartledge is the Director of Policy for Consult Australia. Jonathan represents the needs and interests of Consult Australia member firms across the Finance, Infrastructure and Sustainability portfolios. Jonathan can be reached at jonathan@consultaustralia.com.au

Melbourne Metro 1 Extensive soil testing and geotechnical works will begin in the next few months in preparation for Melbourne Metro 1, a new underground rail tunnel linking Dynon to Domain providing a major increase in capacity for Melbourne’s suburban rail network. Victorian Public Transport Minister Martin Pakula said the release of a Geotechnical Services tender would lead to a number of studies examining the soil and ground conditions to pave the way for the design of the tunnel and underground stations. Job #: KCB-HRS-102 B

Posted: Final

“Melbourne Metro Size: 1/2 pg H (135 mm x 210 mm) colour Lines: n/a 1 will be able to carry

to be constructed,” Mr Pakula said. “In addition, AECOM has been awarded to undertake important planning and environmental assessments for the project.’’ Melbourne Metro is a rail tunnel linking Dynon in the west to St Kilda Road, intersecting the CBD. With proposed underground stops connecting to Melbourne Central and Flinders Street, it will give people from all lines an interchange point to access new stations at Arden Street in North Melbourne, Parkville, and St Kilda Road near Domain.

Jonathan Cartledge

an additional 12,000 passengers every hour Publications: National Outlook Operator: MW

during peak periods and increase access Sign-off: Sharon/Pam Proofread: A to train services in the inner city with five new stations

Down to Earth.

Up to the Challenge.

Klohn Crippen Berger is a multi-disciplinary consultancy providing engineering, geosciences and environmental services in the mining, surface and ground water resources, environmental, hydropower, geotechnical, and oil and gas sectors. We offer our full range of services from offices in Australia, Canada and Peru. Klohn Crippen Berger is pleased to announce the following appointments in our Brisbane and Perth offices. Chris Dickinson, RPGeo., (top) has been appointed a Principal with the firm. Chris is the Regional Manager for our Australasian operations, and as a Senior Hydrogeologist has had project involvement with numerous mining projects in Australia, Asia, the Pacific and Canada. Gerrad Suter, MIEAust, (centre) is an Associate with the firm and the Brisbane office manager. Gerrad leads several major mine waste geotechnical projects in Australia and Asia, and has considerable experience with the challenging equatorial environments of PNG and the Philippines. Chris Strachotta, B.App.Sci., (bottom) has been appointed an Associate with the firm. In his role as Manager Water Projects, Chris manages a range of complementing services (hydrogeology, hydrology, geochemistry) in a broad variety of mining environments in Australia and internationally.

www.klohn.com

sustainability Jonathan Cartledge is the Director of Policy for Consult Australia. Jonathan represents the needs and interests of Consult Australia member firms across the Finance, Infrastructure and Sustainability portfolios. Jonathan can be reached at jonathan@consultaustralia.com.au

Carbon Pricing Back on the Agenda The Minister for Climate Change and Energy Efficiency, Greg Combet announced the composition of the Business Roundtable on Climate Change established to advise the Multi-Party Climate Change Committee (announced by the Government in August), initially on the implications of the introduction of a carbon price, but also on the intersection between the Government’s climate change policies, taxation and other business issues.

the Australian investment sector dedicated to addressing the uncertainty over carbon pricing and will act as a reference group for the Investor Group on Climate Change’s (IGCC) input to the Federal Government’s Business Roundtable on Climate Change. Consult Australia’s Sustainability Roundtable is considering the issue of carbon pricing alongside its current work helping to

determine what steps are required to position Australia to achieve a more sustainable future. Consult Australia will be represented on the Business Roundtable on Climate Change through our membership of the Australian Chamber of Commerce and Industry (ACCI), and we will be working closely with ACCI over the coming months in this regard.

Jonathan Cartledge

In parallel with this initiative nine Chief Executives of Australia’s leading superannuation fund and funds’ management organisations have formed a panel to pursue clarity and certainty on climate change policy including the design of a carbon price. The Panel is the first group of Chief Executives in

National Greenhouse and Energy Reporting Audit Determination Handbook The Department of Climate Change and Energy Efficiency has published the National Greenhouse and Energy Reporting Audit Determination Handbook. The Handbook stipulates the requirements that registered greenhouse and energy auditors must follow when undertaking a greenhouse and energy audit under the National Greenhouse and Energy Reporting audit framework. Unless registered greenhouse and energy auditors comply with the requirements of the Handbook, including reporting in accordance with the templates provided, the audit report cannot be considered a ‘greenhouse and energy audit’ under the terms of the Act and may not be recognised by the Greenhouse and Energy Data Officer (GEDO). The National Greenhouse and Energy Reporting Act 2007 (the NGER Act) introduced a national framework for the reporting and dissemination of information about the 18

National Outlook summer 11

the report notes the strong limitations created by The lack of nationally consistent data indicating the performance of our capital cities, and is provided as a starting point for considering a more comprehensive approach to evaluation.

greenhouse gas emissions, greenhouse gas projects, and energy use and production of corporations. The effectiveness of the NGER Act depends on robust compliance monitoring and enforcement activities. Greenhouse and energy auditing is a key compliance monitoring measure under the NGER Act.

The National Greenhouse and Energy Reporting Audit Determination Handbook is available from www.climatechange.gov.au

Jonathan Cartledge

BUILT ENVIRONMENT 2050: TRENDS FOR THE FUTURE future trends in: • Infrastructure and Planning • Work Environments • Leadership •C ontracts and Insurance

You are invited to attend Consult Australia’s 2011 Conference in Brisbane’s Victoria Park Golf Complex & Function Venue Situated just two kilometres from Brisbane CBD, Victoria Park Golf Complex & Function Venue is an inner city sanctuary combining state of the art golf and function facilities in the one stunning setting.

Early Bird Costs: Member Delegates Non-Member Delegates FutureNet 1/2 Day Package (incl. Cocktails)

$880* $990* $330*

*(GST inclusive)

MEMBERS ONLY 15% Off Corporate Package To take advantage of this special package simply purchase five or more Full Conference Package Tickets in one transaction and receive 15% off the total value.

To book tickets for the 2011 Consult Australia National Conference or for further information visit the website on www.consultaustralia.com. au/2011conference or contact Nicole Pusic on 02 9922 4711 or via email nicole@consultaustralia.com.au

Avril Henry

Speakers include:

Tony Horan

Avril Henry Tony Horan

Tim Flannery

Tim Flannery Mike Zorbas

Michael Zorbas

Keith Dugdale

Keith Dugdale Richard Neville and more...

Join us to shape tomorrow’s future • www.consultaustralia.com.au/2011conference

Commercial Building Disclosure Commences Energy base or whole building rating can be disclosed.

The Commercial Building Disclosure program commenced from 1 November 2010. Under the program owners of commercial buildings are required to disclose the energy efficiency rating when selling, leasing or sub-leasing office space with a net lettable area of 2000 square metres or more. Certain exceptions and exemptions apply. There is a transition period for the first year of the program where a valid National Australian Built Environment Rating System (NABERS)

The second phase of the program is implemented from 1 November 2011 and will require that a full Building Energy Efficiency Certificate (BEEC) will need to be disclosed. BEECs are valid for 12 months, must be publicly accessible on the online Building Energy Efficiency Register, and include:

The NABERS Energy star rating (exclusive of GreenPower) must also be included in any advertisement for the sale, lease or sublease of the office space.

• A NABERS Energy star rating for the building

The CBD program should incentivise energy efficiency upgrades on buildings, improving the return on investment for building owners. The Government has established the Commercial Building Disclosure Implementation Forum to assist parties to understand how the program operates.

• An assessment of tenancy lighting in the area of the building that is being sold or leased and

For more information about the Commercial Building Disclosure program visit the website on www.cbd.gov.au.

• General energy efficiency guidance

Jonathan Cartledge

Our Cities: A productive, sustainable and liveable future Consult Australia welcomes the release by the Gillard Government of the discussion paper Our Cities - building a productive, sustainable and liveable future. As the first step towards the development of a National Urban Policy, the discussion paper outlines the important role of our cities, principles to guide urban policy development and current challenges associated with population ageing, growth and climate change. Many of those key issues of interest to Consult Australia members are touched on: integrated land use and infrastructure planning; investing in urban passenger transport; sustainability; improving transport options and reducing dependence on private vehicles; and governance reform. The identification of these issues as central to the future of our cities reflects Consult Australia’s ongoing advocacy for reform and new thinking on urban policy. Sydney Towards Tomorrow includes many recommendations of national significance across the themes of planning, sustainability, land use, funding and governance. As outlined in this edition 20

National Outlook summer 11

of National Outlook, Transporting Australia’s Future strongly recommends urgent reform to release new funds for transport infrastructure. These recommendations include broad tax reform, better use of existing assets and a review of state and federal responsibilities for infrastructure funding. All these issues must be addressed as part of any comprehensive approach to urban renewal.

• Reduce the carbon footprint of cities and adapt them to the consequences of climate change.

The final version of the Government’s National Urban Policy (the first such policy for a Federal Government in more than a decade) aims to provide a blueprint to:

Consult Australia will be developing its submission in response to the discussion paper in the coming months in collaboration with our Infrastructure Roundtable and Sustainability Roundtable and drawing on our existing expertise and work in this area. Responses to the discussion paper are due by 1 March 2011. The discussion paper can be downloaded from www.infrastructure.gov.au.

• Better connect infrastructure with work and opportunity in cities to reduce people’s dependency on the car. • Develop high quality public transport and infrastructure systems to ease congestion and improve quality of life.

• Improve urban planning and design to better reflect increasingly diverse lifestyles, boost access and affordability. • Get the right mix of urban density and renewal strategies.

Jonathan Cartledge

practice and procurement Jonathan Cartledge is the Director of Policy for Consult Australia. Jonathan represents the needs and interests of Consult Australia member firms across the Finance, Infrastructure and Sustainability portfolios. Jonathan can be reached at jonathan@consultaustralia.com.au

Preserving the Principles of Successful Alliancing In July this year the Victorian Government Department of Treasury and Finance (DTF) published The Practitioner’s Guide to Alliance Contracting Exposure Draft and the Exposure Draft of the Model Project Alliance Agreement (PAA). The guides and policy published through the Victorian DTF represent a collaborative effort between the governments of Victoria, Western Australia, Queensland, and New South Wales. In October 2010 the final policy and guidelines were published, with a further consultation opened on exposure draft guidelines for developing the TOC in alliance contracting. Consult Australia is concerned that in finalising these guidelines and supporting policy for alliance contracting the principles that underpin successful alliancing are not being observed. Consult Australia supports alliancing as a valuable tool to deliver projects with benefits for all participants. We respect the principles on which alliancing has been built, and which have evolved as this has become an increasing component of our member firms’ business over the last fifteen years.

Consult Australia supports alliancing as a valuable tool to deliver projects with benefits for all participants.

Alliancing is a valuable tool to support successful project delivery alongside Design and Construct (D&C) contracts, traditional methods, and Public Private Partnerships (PPP). It must be recognised that each of these methodologies has its own strengths and weaknesses based on the project being considered. Each requires different commercial imperatives and behaviours of participants (though all demand balanced negotiating and commercial skills), and each should be assessed for selection based on its merits and appropriateness to the circumstances pertaining to each specific project. 22

National Outlook summer 11

Amongst these approaches, however, Alliance contracting is unique in that through a collaborative approach that demands good faith, trust and transparency, it is more vulnerable to the manipulation of its defining principles, and incremental erosion of its utility as a genuine alternative to other contracting methods. Since alliancing became more widespread among our members, Consult Australia has been concerned about the adoption of collaborative models which are not alliances, but which carry the expectation that such approaches to the relationships between the contracting parties will deliver alliance-like outcomes. Such arrangements ignore the fundamental issue that pure alliancing is built around a set of behaviours which are driven by the fair and equitable sharing of risk and reward between all contracting parties. Caution must be exercised in supporting an approach that offers ‘an each way bet’ by developing an integrated project team while retaining the right to allocate responsibility or liability and blame if problems occur, or outcomes are less than desired. This is ‘the alliance you have when you don’t have an alliance’ in which there is little or no real commitment to the principles of true alliancing Consult Australia recognises that the strength of the alliance model lies in the full range of benefits that can be achieved by all participants. This will include a competitive process that ensures value for money is achieved. However, in accommodating competitive tendering within an alliance framework it is important that this is tailored to the project at hand, and does not compromise the model overall. The Victorian DTF Practitioners’ Guide states that ‘Any departure from using competition on the outturn price as a key tender selection criterion for a proposed alliance project or program represents a departure from Government policy and therefore requires a formal exemption to be approved.’ Consult Australia does not consider

that a default approach should be established for the Target Outturn Cost (TOC) phase. We believe the suggestion that competitive tendering is an appropriate default approach is to the detriment of the guidance. This default position indicates a fundamental misunderstanding of the alliance delivery process. Alliancing is inherently different to traditional contracts where there is no visibility of competitiveness once a tender is accepted. In contrast, true alliancing demands: full accountability for competitiveness of every element of work as benchmarked against an Independent Estimator’s TOC; and that every subcontract package that is tendered, and every opportunity realised and risk managed out of the contingency is able to be analysed, shared between participants and serves as a demonstration of value for money and a learning for all parties. A strong role for the Independent Estimator is crucial. To ensure Value for Money (VfM) and price contestability are both being achieved for a complex project, a preferred alliance team may develop a TOC that is then tested for full price contestability with a fully independent Check TOC prepared by an Independent Estimator appointed by the Owner and reporting to the Owner. Full accountability for all costs will be ensured by the appointment of an Independent Auditor appointed by and reporting to the Owner Real value for money in complex projects comes from: finely tuning the scope to opportunities and stakeholder requirements; jointly managing out risks to minimise contingency; and full engagement of the Owner in determining and developing the best VfM outcomes at all stages of the project. Although there is a place for dual TOC price competition, the cost of these processes to the Owner and to industry must be weighed against compromising the benefits of a properly integrated team. There will always be a temptation for some participants to see alliance contracting evolve to take on the seeming advantages associated with more traditional contracting models. Consult Australia cautions against these moves where they appear to undermine those principles that have made alliancing as successful as it has proven itself to be.

Jonathan Cartledge The issues raised in this article are explored in more detail in Consult Australia’s submission to the Victorian Department of Treasury and Finance, available at www.consultaustralia.com.au.

contracts and liability

Tony Horan - Victorian bar

successful contracting Negotiating consultant contracts is all about trust and the relationship between the two parties. Tony Horan offers 10 tips for effective contracting. Contracts to purchase a business, sell a property, buy shares or borrow money are all transactional. Once the deal is done the parties move on. In some cases, an aggressive ‘take it or leave it’ approach to negotiation may benefit your interests. Some clients (including government) and their lawyers seem to think this is the right approach when engaging consultants. Consultant contracts are fundamentally different. A contract between client and consultant is a relationship contract. By its nature, the client must trust the consultant is exercising care and skill in providing specialist services over the period of the consultancy. At the heart of a successful engagement, there must therefore be a healthy, commercial relationship between the parties; a relationship of trust. It is common practice in Australia for clients to produce, via their lawyers, long, complicated consultant contracts containing a range of broad, oppressive clauses. These clauses reflect an imbalance of risk allocation away from the client and towards the consultant. They send one message to the consultant: we don’t trust you. There is a Japanese proverb: if all you have is a hammer, everything looks like a nail. In fact onerous, aggressive contracts tend not to protect the client. Disputes are more likely to happen, not only about the services provided by the consultant, but also the legal meaning and effect of various contract clauses. Clients lose the opportunity to remedy mistakes or problems early (and cost-effectively) because the consultant is more reluctant to disclose problems for fear of contractual retribution. A negotiating environment of defensiveness, self-interest and self-preservation is less likely to lead to a successful outcome. Here are 10 tips in negotiating an effective consultant contract.

By its nature, the client must trust the consultant is exercising care and skill in providing specialist services over the period of the consultancy.

National Outlook summer 11

1 Scope Most disputes between clients and consultants are about the scope of services and how they are delivered. While the terms and conditions of the contract are obviously important, they can distract the parties from spending sufficient time on reaching agreement on a detailed scope of services. The more time the parties can spend learning about each other by negotiating and carefully articulating the scope of services, the less likely misunderstandings will happen during the project about what services were agreed, by when, to what standard and for what price. A client must also understand the limits of the services the consultant will provide, and the risks for which they are not responsible (particularly when advising on soil and contamination). Disputes over variation claims are less likely when the parties have agreed to a clear, comprehensive scope of services. 2 Payment Ensure payment provisions are simple, clear and easy to calculate. Include a right to contractual interest for late payment. Consultants should avoid set off clauses that permit the client to defer payment of fees until resolution of any counterclaim by the client.

Payment of fees can be significantly delayed while the consultant’s insurers and the client are litigating the negligence claim. 3 Contracting parties Ensure each party is accurately named; it may become a critical issue if you need to enforce your rights under the contract. Check corporations are correctly described (including applicable ACN or equivalent) and remain a registered corporation. Do not enter contracts with business names; find out who owns the business name and decide whether to contract with them. Check any agency issues: are you contracting with the person with whom you are dealing, or are they an agent for someone else? 4 Insurance Why should consultants put their business at risk by agreeing to contractual obligations not covered by professional indemnity insurance, such as under strict liability warranties and indemnities? When encouraging consultants to accept these clauses, clients and their lawyers commonly state: • “No one else has complained about these clauses.” Would the client prefer to engage someone who protects their business interests, or a consultant who will put their business at risk over one project?

• “ The additional risk of liability under these clauses is marginal.” Risk has two elements: probability and consequence. While the probability may be low, the impact upon a consultant of a claim not being insured may be severe. • “ The client has no interest in the consultant’s insurance position.” Given the limited assets of most consultancies, insurance may be the only avenue for a client to recover its loss. In NSW, Tasmania and WA, consultants are permitted to contract out of proportionate liability. Consultants should never do so. Under the law, a consultant who is sued for negligent conduct typically is entitled to have its liability to the client limited by reference to the comparative responsibility of others for the client’s loss. By contracting out of proportionate liability, the consultant agrees to be liable for 100 per cent of the client’s loss – and that additional liability is probably not insured. 5 Documents Blaise Pascal famously said: “I would have written a shorter letter, but I did not have the time.” The test of a strong, effective contract clause is that it is brief, concise and uses plain language. If you don’t understand what a clause means, don’t assume it makes sense to anyone else. Ask the lawyer who drafted it. That can lead to constructive discussion on what the clause is trying to achieve, and how it may be redrafted in plain language. A valuable question for consultants to ask a client is: have you had difficulty in the past with the issue addressed by this clause? This invites the client to explain any recent bad experience and can lead to constructive discussions.

Copyright and other intellectual property rights are complex. It is important to seek legal advice from a specialist lawyer. It is an offence under the Copyright Act 1968 to make groundless threats to sue for infringement of copyright.

Aim to execute a single, cohesive contract document (or set of documents) that contains all the terms of the agreement.

The contract should allow the consultant reasonable compensation when the client terminates for convenience.

6 Preliminary arrangements

9 Dispute resolution

When buying a newspaper, a contract is created without executing any formal document. It sometimes happens that a party argues the contract was reached prior to the formal execution of the contract documents, and on different terms. To avoid this, when entering a memorandum of understanding or making some other preliminary arrangement, make it very clear (better in writing) that you do not intend to enter a contract at that time.

Where possible, contracts should encourage early identification and resolution of disputes. For example, the parties may be required to notify claims within a period of time after becoming aware of their rights, or lose those rights. In larger projects, the parties may agree to appoint a Dispute Resolution Board who attends site regularly to hear and make recommendations on resolving disputes during the project.

7 Copyright

To avoid delay in recovery, consultants may prefer to exclude claims for payment of professional fees from the dispute resolution process, which typically involves notices of dispute, settlement conferences, mediation and the like.

Unless there is very good reason (such as the client is constructing a prison), the consultant should retain copyright over the work. In the absence of express agreement to the contrary, the client receives an implied licence to use a consultant’s work, but only for the purpose that was the subject of the contract. If the contract requires the consultant to transfer copyright to the client, ask the client whether it intends to use that design on other projects. If not, then the licence to use the material for the current project should be sufficient. If yes, the consultant may ask to be paid a licence fee for the multiple use of the design, and also can address any liability issues in the work being used at other times and in other places. Copyright and other intellectual property rights are complex. It is important to seek legal advice from a specialist lawyer. It is an offence under the Copyright Act 1968 to make groundless threats to sue for infringement of copyright. 8 Termination rights Contracts should provide each party with rights to terminate the agreement, including a right to terminate at the convenience of one of the parties (after giving a period of notice).

10 Sniff test At some stage, consultants and clients alike achieve a level of maturity and confidence where they no longer indiscriminately take on every client or every project that walks through the door. They are willing to walk away from a bad risk. This is the most important risk management tool of all. It applies to consultants and clients alike. The process of negotiating the contract, particularly the scope of services, is a vehicle for the parties in assessing each other and deciding whether to proceed and on what terms. That is why clients and consultants need to be involved personally in that process.

Tony Horan Tony Horan is a member of the Victorian Bar, a Senior Fellow at the University of Melbourne and a nationally accredited mediator. Over the past two years he has presented Consult Australia’s ‘Contracts for Consultants’ course nationally.

summer 11 National Outlook

contracts and liability Nelson de Sousa is a Policy Adviser for Consult Australia. Nelson represents the needs and interests of Consult Australia member firms on issues such as Contracts & Liabilities, and Workplace Health & Safety. Nelson can be reached via email at nelson@consultaustralia.com.au

Revised Australian Standard for General Conditions of Contract for Consultants Now Available Consult Australia welcomes the release of the revised Australian Standard for General Conditions of Contract for Consultants (AS 4122). It is vital to the Australian economy that competition in the consulting industry be based on recognition of the value of technical and commercial performance outcomes. However, many contracting behaviours that are evident across the building and construction industry are driving poor risk management behaviours and exposing all parties to the possibility of project failure and unforseen cost. The lack of standardisation of contractual terms across the public and private sector means that cost and time is lost in the parties repeated negotiating the core terms. This can now be resolved by the take up across the market of AS 4122. Consult Australia recognises the importance of and critical need for an up to date, contemporary, and relevant standard agreement for the engagement of consultants. Consult Australia along with Association of Consulting Architects Australia, Australasian Procurement and Construction Council, Australian Constructors Association, Australian Institute of Architects, and Master Builders Australia Limited has played a key role in the revision of AS 4122. As 4122 will meet the needs of our members through the fair and proportionate allocation of risk that is in line with current industry best practice while also meeting government requirements. Consult Australia believes the revised AS 4122 will provide greater clarity for both public and private sectors and simplify and shorten contract negotiations. The use of AS 4122 will: • Reduce the time and resources spent negotiating contractual terms and conditions of engagement; • Reduce the need for external legal advice; • Streamline the process for the engagement of consultants; • Improve clarity and certainty of contractual terms and conditions between consultants and clients; and 26

National Outlook summer 11

Consult Australia strongly supports the revised AS 4122 and believes that the commercial terms are fair and reasonable and will facilitate widespread untilisation by both private and public sectors. Consult Australia is committed to promoting AS 4122 to see its use across industry grow.

• Reduce disputes between clients and consultants based on contractual terms. Consult Australia strongly supports the revised AS 4122 and believes that the commercial terms are fair and reasonable and will facilitate widespread untilisation by both private and public sectors. Consult Australia is committed to promoting AS 4122 to see its use across industry grow. It is highly important that AS 4122 be used by both private and public sector industries.

The Australian building and construction industry stands to benefit greatly through having greater access to a standard form of contract. Under AS 4122, both purchasers and providers of services have a contract that is both fair, reasonable and in line with current industry practice. The 2010 edition of AS 4122 is now available from Standards Australia’s distributor, SAI Global, www.saiglobal.com

skills & resources Jonathan Russell is a Policy Adviser for Consult Australia. Jonathan represents the needs and interests of Consult Australia member firms across the Skills portfolio on issues such as education, workforce participation and skilled migration. Jonathan can be reached at j.russell@consultaustralia.com.au

The Case for Engineering Registration

Consult Australia continues to work with its partners in the National Engineering Registration Board (NERB) to promote the development of a national engineering registration model.

While we undergo an unprecedented mining and construction boom, Australia is facing a shortage of some 20,000 engineers. Making sure engineers can go seamlessly to where they are needed is key to dealing with this shortage in a practical and immediate way.

This is important work because engineers play a key role in Australian society - designing and developing vital cogs in our economy, and everyday lives. The standard, quality and availability of engineers is fundamental to the success of the built and natural environment in consulting firms. Yet, while Australian Governments are embarking on a process of developing national systems for trade and professional qualifications, engineering is being excluded. The Productivity Commission has recently found that making architects register and pay a separate fee in each jurisdiction acts as a barrier to their mobility. Engineers face much greater variability in professional requirements and fees. Fourteen different Acts and subordinate legislation regulate some engineering services in most states and territories. Where regulation

National Outlook summer 11

exists, it is rarely specific to engineering services. Queensland is the only state that requires all engineers to be registered if offering or providing engineering services, and Western Australia is considering introducing similar requirements. In other states and territories engineers generally operate under a self-regulatory system. While we undergo an unprecedented mining and construction boom, Australia is facing a shortage of some 20,000 engineers. Making sure engineers can go seamlessly to where they are needed is key to dealing with this shortage in a practical and immediate way. Now more than ever we need a national system for registration to ensure that there is portability of the profession across jurisdictions to bring efficiency to the system while making sure standards are protected.

model, and copies are being distributed to all Consult Australia member firms. Electronic copies are available on the Consult Australia website at: http://www.consultaustralia.com. au/content/default.aspx?ID=435.

The benefits of national registration Industry and the profession believe that a nationally-consistent system of registration for engineering professionals is in Australia’s interests and will lead to improvement in: • Addressing skills shortages, enhancing mobility: Accessing markets across Australia and its international trading partners where statutory registration is the accepted norm.

observe statutory codes of practice that mandate their obligations to community, clients and colleagues. • Efficiency: Cutting red tape via consistent legislation that allows engineers to register just once, in one jurisdiction to practise in all States and Territories.

The proposed model will ensure that engineers will need to be registered in just one state or territory to have their registered status recognised across Australia. An assessment entity would be approved by governments to assess applications for registration. Under the proposal, individual jurisdictions will monitor compliance with registration requirements and prosecute breaches, and a complaints and disciplinary board/tribunal would hear complaints against registered engineers or take action against unregistered practitioners. The Consult Australia website also provides an information sheet to address potential challenges associated with national registration. To visit the website, go to: http:// www.consultaustralia.com.au/content/default. aspx?ID=435.

The proposed model The NERB has produced a flyer which provides an introduction to the proposed registration

• Risk management and consumer protection: Allowing only registered engineers to deliver complex engineering projects and providing appropriate recourse against sub-standard work. • Skills and status: Building community awareness of the engineering skills required to protect community safety, health and welfare while attracting appropriate students to engineering as a profession. • Enhancing Public Safety: Ensuring that qualified and competent professionals URETEK 1/3PG-1811-NAT OUTLOOK 3:Layout 1

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skills & Resources Jonathan Russell is a Policy Adviser for Consult Australia. Jonathan represents the needs and interests of Consult Australia member firms across the Skills portfolio on issues such as education, workforce participation and skilled migration. Jonathan can be reached at j.russell@consultaustralia.com.au

Paid Parental leave Government-funded paid parental leave has arrived. Parents can apply now if they are expecting the birth or adoption of a child on or after 1 January 2011. Under the Commonwealth Paid Parental Leave Act 2010, eligible primary carers of children have an entitlement to 18 weeks - more than four months - of Parental Leave pay at the National Minimum Wage (NMW). The NMW is regularly reviewed, but at present it is $570 per week based on a full-time work week of 38 hours. Paid Parental Leave (PPL) that is supported by legislation is a step in the right direction for creating a more inclusive workforce.

Employers as paymasters The most controversial aspect of the Government’s PPL scheme is the requirement for employers to act as ‘pay masters’. In essence, this means that the Family Assistance Office will transfer the Parental Leave pay to the employer who must then forward it on to the employee in normal pay cycles. This will necessitate changes to company pay-roll systems and careful bookkeeping.

The National Employment Standards in the Fair Work Act 2010 (Cth) have to date entitled parents to leave, but with no guarantee of pay. PPL therefore provides an improved level of financial security to new parents.

The Government introduced the employer pay master function as a way to keep employees and employers connected during the PPL period. While that is an admirable aim, it will instead create a significant regulatory burden on business.

Also, the Government estimates that 85 per cent of families will be better off receiving PPL than if they utilised other payments such as the Baby Bonus.

Employees wishing to stay connected with their employer during the PPL period have access to 10 ‘stay in touch’ days, which is a core provision in the PPL scheme.

Many Consult Australia members, however, already have generous paid parental leave policies.

On 15 November, the federal Shadow Minister for Small Business, Competition Policy and Consumer Affairs, Bruce Billson MP, introduced a Private Members’ Bill to amend the Paid Parental Leave Scheme. The Paid Parental Leave (Reduction of Compliance Burden for Employers) Amendment Bill 2010 seeks to remove the requirement for employers to act as a paymaster.

In general, if company paid parental leave schemes are already provided, the legislated PPL scheme may be absorbed into company schemes, though there must be no overall reduction in the employee’s entitlement.

Consult Australia supports moves to remove the paymaster function, though members are advised to continue to follow the scheme as it stands now. Debate on the Bill has occurred in the House of Representatives, and a vote on it is expected when Parliament resumes in February 2011. Members will be notified of progress on the Bill through CE Update. Consult Australia believes that effective paid parental leave provisions are essential in a modern diverse workplace. This new scheme will no-doubt develop over time, but member firms who expect to have employees taking up this new opportunity should read the Consult Australia Practice Note to learn about the more intricate aspects of the scheme. To obtain a copy, go to the Practice Notes page on the members-only section of the Consult Australia website (www. consultaustralia.com.au) and find Practice Note 5.13: Commonwealth Paid Parental Leave Scheme. Expectant parents, including those who are self-employed, should contact the Family Assistance Office on 13 6150 or visit their website at www.familyassist.gov.au.

Jonathan Russell

PPL – the basics To be eligible for Paid Parental Leave (PPL), parents can be full-time, part-time, casual or contract employees or self-employed and have an individual salary of up to $150,000 a year. They must also have worked at least 330 hours for 10 of the 13 months before their new baby arrives - this equates to just over one day a week, and an eight week unpaid break between two working days is permissible. Consult Australia employers have a role to play, but only if certain criteria are met. The first of these is a requirement for an eligible parent to have been an employee for at least 12 months prior to the date of birth or adoption. 30

National Outlook summer 11

They will also need to be an employee for the PPL period, be an Australian-based employee, and be expected to receive at least eight weeks of Parental Leave pay. If any of these requirements are not met the employee’s access to PPL will be managed wholly by the Family Assistance Office (FAO). It is important to know that employers do not assess the eligibility of their employees for PPL – this will be done by the FAO on receipt of the expectant parent’s application.

Jonathan Russell

Skills & Resources

Women working in the built and natural environment When looking at the skills shortage in the built and natural environment, a common question is, “Why aren’t more women involved?” In trying to answer this question at a recent Consult Australia Skills Roundtable, members quickly realised that we too often rely on anecdotal evidence. Solid statistics are needed to analyse the issue objectively and to support calls for action to create a more inclusive workforce. Consult Australia, through the Skills Roundtable, is conducting a survey of members to measure the number of employees in each member firm, broken down by gender, profession and level of seniority. The focus is on measuring the extent to which women are represented in professional service (such as engineers, scientists, management consultants and other professional services providers), senior corporate and support services, and managerial roles. The survey will build on reporting that is conducted by the Australian Government Equal Opportunity for Women in the Workplace Agency (EOWA), but go further to create a more detailed view of the workforce. The aim of the survey is to identify points in the careers of women that may require greater attention by employers to ensure that they are not ignored or lost by industry. The survey will identify trends in such things as differences in pay, years spent in employment, turnover, age

at seniority levels etc, thus indicating where further work should be directed. It is useful to acknowledge, too, that the low number of women in the engineering professions in particular has causes that are driven more by society and trends seen in school education. For example, some degree of gender stereotyping is often involved, and often from a very young age, that reduces the chance that young women will view technical careers as a typical path. This is on top of the declining number of school students who graduate with maths skills sufficient to take on engineering and other technical university studies. To help overcome this, Consult Australia has been calling for the federal Government to use the new national school curriculum to encourage school-aged women to pursue technical careers. The national curriculum is being developed by the Australian Curriculum, Assessment and Reporting Authority (ACARA) in three stages and the curriculum for Stage 1 (English, maths, science and history) is expected to be released by the end of 2010.

women and introduces them to the ways in which the sciences can address issues of concern to young people, and young women in particular. So, why aren’t more women involved in the professions of the built and natural environment? Everyone is likely to have a view on this but even before the survey results are in, two things are clear: the industry needs to attract more women to the professions and, once they are involved, we need to retain and promote those women in the workforce. If your firm would like to participate in the survey, visit the Survey Centre on the members-only section of the Consult Australia website, or contact Jonathan Russell, Policy Adviser for the skills portfolio, through j.russell@consultaustralia.com.au.

Jonathan Russell

A key recommendation put forward by Consult Australia to ACARA for Stage 1 was to develop a curriculum that engages young

Migration Workshops Free workshops with migration specialists are now available for Consult Australia members. Svetlana McNeil, the Department of Immigration and Citizenship (DIAC) Industry Outreach Officer (IOO) presented the first of these workshops, Introduction to Skilled Migration, on Tuesday 30 November at the Consult Australia national office in Sydney. This workshop was aimed at members who are relatively new to skilled migration and are considering their options for employing foreign workers. Workshop participants focussed on the Temporary Business (Long Stay) - Standard Business Sponsorship Visa (Subclass 457). They learned about how the visa works, eligibility criteria, obligations that the visa places on

employers and employees, and the basics of the applications process. Future workshops will focus on particular aspects of the skilled migration process. As well as beginners, these will be useful for employers experienced in employing skilled migrants but needing to hone their skills in specific steps of the migration process. The series of workshops being developed will cover such subjects as how to become a sponsor of skilled migrants, how to apply to recruit a migrant on a Visa Subclass 457, making applications that are “decision ready”, and exploring different visa options for skilled migrants.

(dates are to be confirmed). There are plans to provide them in other states as demand requires. In the meantime, members with skilled migration questions can contact Svetlana at the Consult Australia national office on (02) 9922 4711 or 0466 150 022, and by e-mail at Svetlana.McNeil@immi.gov.au.

Svetlana McNeil For more information on the role of DIAC Industry Outreach Officers can be found on the Consult Australia website at www.consultaustralia.com.au/ content/default.aspx?ID=130.

Workshops are open to all Consult Australia members, and to begin with they will be held in Sydney from the beginning of 2011 summer 11 National Outlook

skills & Resources

Scoping our future: addressing Australia’s engineering skills shortage

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SCOPING OUR FUTURE ADDRESSIN

G AUSTRALIA’S ENGINEERING SKILLS SHORTA GE

The Australian National Engineering Taskforce (ANET) launched its report, Scoping our future: addressing Australia’s engineering skills shortage, on 8 December 2010. The Prime Minister is a strong supporter of the work of ANET and provided the foreword to the report. The report, in the words of Julia Gillard, “puts a spotlight on key aspects of a major challenge for Australia – skilling our workforce to take advantage of the significant economic opportunities that lie ahead of us.” More specifically, it provides detail of the scope of engineering capability and capacity problems and heralds the work of ANET in developing solutions. These capacity problems include supply side issues such as the unsatisfactory number of students studying maths and science at school, the high drop out rate from university engineering courses and the scale and cost of bringing skilled engineers from overseas. The large numbers of engineers who continue to leave the profession is also an indicator of more complex problems with the way the skills of high-value professionals are used and developed by industry. To help address these issues, and with the help of significant government funding, ANET has commissioned two projects that will be complete by March 2011. These research projects will provide ANET with the data

required to develop targeted strategies and inform calls for action by industry, government and related sectors such as universities. One project focuses on engineering education, with research into articulated pathways to engineering degree qualifications in Australian universities. It is being completed by the Australian Council of Engineering Deans and will examine pathways to a bachelor of engineering degree for students who enter that course other than via a secondary school certificate. It will identify barriers to success and examples of best practice. The other is an exercise to map the engineering profession in the road and rail sectors, focussing on demand, supply and workforce development. It is being conducted by the University of Sydney Workplace Research Centre and the National Institute for Labour Studies at Flinders University and involves both quantitative and qualitative studies. Quantitative analysis of census and other data will determine the size and composition of the engineering workforce. The qualitative study is based on a current rail project and includes interviews with on-site engineering, project

About ANET ANET has been formed by Consult Australia with the Association of Professional Engineers, Scientists and Managers Australia (APESMA), Engineers Australia, The Australian Council of Engineering Deans (ACED) and the Australian Academy of Technological Sciences and Engineering (ATSE). Together, these organisations represent the major professional, industrial, commercial and academic interests in the engineering sector. Through this collaboration, ANET will create a national strategy for the development of Australia’s current and future engineering workforce.

National Outlook summer 11

management and HR staff from the project owner, the consultancy firm involved and the principle contractor. The study will explore their views on how relevant skills are defined, acquired and used. For a copy of the report, Scoping our future: addressing Australia’s engineering skills shortage, contact the Consult Australia national office on (02) 9922 4711, or send an e-mail to Jonathan Russell, Policy Adviser for the skills portfolio, at j.russell@consultaustralia. com.au. For more information about ANET, the event on 8 December or associated projects, contact the ANET team by e-mail at info@anet.org.au.

Paul Davies ANET co-ordinator and Director of Planning and Development for The Association of Professional Engineers, Scientists and Managers, Australia

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workplace health & safety

professor Helen Lingard - RMIT University

Hazard prevention through design Researchers in the School of Property, Construction and Project Management at RMIT University are conducting an in-depth analysis of design decision-making in the Australian construction industry. This research will provide a better understanding of how the concept of ‘Construction Hazard Prevention through Design’ (CHPtD) can be practically implemented in construction projects and will inform the development and implementation of CHPtD tools that are useful in the context of current project management structures and decision-making environments. Data is being collected from ‘live’ construction projects, covering a range of industry sectors (i.e. residential, commercial/industrial, civil engineering etc.) and project sizes. Data collection is being conducted using a combination of interviews with project decision-makers, direct observation of design team meetings and an examination of project documentation (where possible). Once collected, data is used to produce graphic representations of the design decision processes impacting upon OHS, quantitative models of social networks and interactions between design decision-makers and narrative descriptions of the design rationale. The data will be used to identify opportunities for the transfer of good practice between industry sectors, or between projects in different size brackets, e.g. large compared to mediumsized projects. The research will also support the development and implementation of CHPtD tools and resources that better reflect the complexity of practical design decisionmaking in the construction industry.

The data will be used to identify opportunities for the transfer of good practice between industry sectors, or between projects in different size brackets

The ‘Construction Hazard Prevention through Design’ (CHPtD) concept is defined as ‘the consideration of construction site safety in the design of a project’. It includes ‘modifications to the permanent features of the construction project in such a way that construction site safety is considered; attention during the preparation of plans and specifications for 34

National Outlook summer 11

construction in such a way that construction site safety is considered; the utilization of specific design for construction safety suggestions; and the communication of risks regarding the design in relation to the site and the work to be performed’ (Behm, 2005, p. 590). In Australia, a number of states and territories incorporated CHPtD requirements into their principal OHS Acts, although requirements are not nationally consistent. However, the national harmonisation should see the adoption of a Model ‘Safe Work Act 2009 (Model Safe Work Provisions)’ throughout Australia. The ‘Model Act’ contains clear and explicit responsibilities for construction designers to ensure that, so far as is reasonably practicable, designs are safe and without risks to the health of persons who construct them. Despite research evidence linking design to construction OHS incidents, it remains difficult to unequivocally determine the strength or importance of the causal relationship between design and construction stage OHS outcomes. Critics suggest that research has failed to distinguish between different design activities involved in the construction industry, confusing design of the permanent building/ structure with design of the site layout, the process of construction or plant/equipment being used or installed during construction. Some industry practitioners and academics have proposed the use of visualisation tools and the use of multi-dimensional Building Information Modelling (BIM) to identify OHS hazards and capture relevant OHS information during design. However, the adoption of these tools has not been widespread. It is important that CHPtD tools are informed by a detailed understanding of the process of design within the construction industry. Specifically, there is a need to ‘unpack’ how, when and by whom design decisions with the potential to impact OHS during the construction stage are actually made. A more robust understanding of design practice would provide a more realistic basis for the development and implementation of practicebased CHPtD tools. Construction design work comprises a complex network of tasks, requiring contributions from many specialists and the involvement of a complicated ‘web’ of interorganisational relationships. The high degree of interdependency between design tasks

requires frequent and detailed interaction between contributors to ensure that components are compatible. Not only does the OHS performance of each subsystem need to be considered but so do the interfaces between subsystems.

Critics suggest that research has failed to distinguish between different design activities involved in the construction industry...

Given this complexity, ascribing responsibility to the occupant of a single socio-technical role, such as ‘the designer,’ assumes a simplicity that does not reflect industry practice. For example, in the context of increased product complexity, specialised contractors are often responsible for the detailed design of building elements. Indeed, many of the building technologies identified as resulting in positive OHS risk reduction are driven by building systems manufacturers and not principal design consultants (Wright et al., 2003). This research is being conducted in collaboration with researchers led by Professor Brian Kleiner in the Center for Innovation in Construction Safety Research at Virginia Tech. (USA). The Australian research results will be compared with US results as part of an ongoing five year international benchmarking study of construction OHS practice and research. The team is currently seeking construction projects in the planning or design stage. If you would like to volunteer to participate in the research, or for further information, please contact Professor Helen Lingard (helen. lingard@rmit.edu.au) or Ms Tracy Cooke (tracy. cooke@rmit.edu.au). References Behm, M., (2005), Linking construction fatalities to the design for construction safety concept, Safety Science, 43, 589–611 Wright, M., Bendig, M., Pavitt, T. & Gibb, A., (2003), The case for CDM: better safer design – a pilot study, Health and Safety Executive Research Report 148, Her Majesty’s Stationary Office, Norwich.

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economics & taxation

Andrew McCredie - Australian Services Roundtable (ASR)

The New Economic Challenge: Australian Services The has launched their latest report: The New Economic Challenge: Responding to the Rise of Services in the Australian Economy. As in all developed countries, a large and increasing proportion of Australiaâ&#x20AC;&#x2DC;s economic activity comprises the delivery and consumption of services. Indeed, as most consumers reflecting on their expenditure patterns realise, much of our income is spent on financial, health, education, communications, IT, entertainment, travel and other services. In Australia today, the services sector accounts for 80 per cent of GDP and around two-thirds of total tangible and intangible domestic investment. Around 84 percent of Australian firms are services firms. Further, services are intrinsically peopleintensive industries and, despite rapid growth in labour productivity, the services sector is also the source of most global job growth over the last decade. In Australia, services industries employ 85 of every 100 people in the work force and employ 93 per cent of our university graduates. With services representing over 80 per cent of the economy, it is clear that a major source of future growth must be increased productivity in the services sector. Growth in the service sector offers the greatest opportunities to create highvalue jobs, increased productivity, export earnings and improved standards of living. Yet these facts are not well known, or if they are, the implications for public policy and trade remain poorly understood. The Australian Services Roundtable (ASR) has long been concerned that relatively little data has been available to identify the underlying growth trends as well as challenges of the Australian services sector. Without this data it is not possible to identify the best ways in which the potential of the Australian services sector can be harnessed, both domestically as well as in the global economy. The lack of reliable economic data to define and measure services productivity and exports has in turn perpetuated the perception that services are not as important for economic growth as other traditional industries such as mining, manufacturing or agriculture. This has had the tendency to distort debate on the trade and industry policy actions that are needed to develop both the services sector itself and the economy generally. 36

National Outlook summer 11

The Australian Services Roundtable (ASR) has long been concerned that relatively little data has been available to identify the underlying growth trends as well as challenges of the Australian services sector. Without this data it is not possible to identify the best ways in which the potential of the Australian services sector can be harnessed, both domestically as well as in the global economy.

By way of example, whilst we know that around 84 per cent of Australian firms are services firms, we do not collect data on how many of these firms have foreign affiliates, their size, their rate of growth or the revenues that these affiliates generate for their Australian offices. Consequently, current official statistics on the international sales of Australian business omit this substantial activity completely. This is a serious omission. Estimates from this report are that around two-thirds of Australiaâ&#x20AC;&#x2DC;s export services trade is undertaken by these foreign affiliates. International data shows that this area of services trade is rapidly growing and is of enormous potential value to the Australian economy. ASR believes that it is imperative that government agencies collect this and other important services sector data in order to better understand the services sector. Armed with better data, Governments and industry can work together to identify regulatory and other impediments to growth and measure trends and exploit opportunities. ASR fully recognises the substantial role that the mining, manufacturing and agricultural sectors play in the Australian economy. The New Economic Challenge is not designed to devalue or argue about which sector is more important or valuable. They all are. Some of the benefits of better services will be seen also in the agricultural, mining and manufacturing industries. These industries are often the natural partners of services firms which provide the financial, technology,

energy, transport and logistics services, and in turn enable the productivity gains and access to markets, that these traditional sectors once thought impossible. The New Economic Challenge examines the available data on services, identifies areas where we need to know much more, and recommends the essential next steps necessary to generate substantial growth for Australian services industries in the domestic and international marketplace. ASRâ&#x20AC;&#x2DC;s view is very clear. Australia is predominantly a services economy. The global services market is growing. Many other economies are pursuing a services agenda with an eye on that market. If Australia is to take advantage of the opportunities on offer there is no time to lose.

Andrew McCredie Andrew McCredie is Executive Director of the Australian Services Roundtable and can be emailed on exec@servicesaustralia.org.au Consult Australia is a member of ASR and supported the development of this report. The New Economic Challenge: Responding to the Rise of Services in the Australian Economy is available to download at www.servicesaustralia.org.au

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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 Consult Australia 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. Heggies Pty Ltd

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Consult Australia’s PI Insurance Pathway gives Consult Australia members access to the PI market through a Panel of Brokers selected by Consult Australia. Consult Australia is providing a referral service only and is not providing any form of financial advice or offering a financial product. Consult Australia 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 Consult Australia member firm.

economics & taxation Jonathan Cartledge is the Director of Policy for Consult Australia. Jonathan represents the needs and interests of Consult Australia member firms across the Finance, Infrastructure and Sustainability portfolios. Jonathan can be reached at jonathan@consultaustralia.com.au

R&D Tax Update The research and development (R&D) Tax Credit (Tax Laws Amendment (Research and Development ) Bill) continues its slow passage through Parliament having successfully moved through the House of Representatives in November 2010: it remains to be seen whether it passes through the Senate in 2011. The Coalition will require the support of the Independents to block the passage of the Bill. Public debate within the business community has continued to focus on the definition of what constitutes R&D activities within the Bill, and the intention to make the Credit retrospective with a commencement date of 1 July 2010. There is also significant concern about the impact of the revised Credit on consulting firms’ ability to claim legitimate R&D. Changes to the definition of what constitutes core R&D and new dominant purpose tests and complex feedstock rules have introduced ambiguity into the legislation and significantly limit the scope for the Credit to support genuine innovation within firms consulting in the built and natural environment. Industry continues to call for a commencement date from 1 July 2011, to provide businesses with appropriate guidance and consultation prior to implementation. Consult Australia continues to monitor the passage of this Bill in the months ahead.

Jonathan Cartledge

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finance

Brian Ray - Westpac

Making the right decisions...and why Australia’s freight industry is key “If we make the right decisions we will convert our strong economic position into a new generation of prosperity”. These were the words of former Prime Minister Kevin Rudd from April 2010 speaking on “Economic reform to meet Australia’s future challenges”. To this, I agree. As a nation, we have the natural resources, intellectual capital, stable business environment, and sound public finances to generate growth, and leverage productivity. What’s more, Australia is as an attractive investment location for businesses and investors globally. We have reason to be optimistic. But, I also agree that this is contingent on our ability to make “the right decisions.” These decisions must help us overcome our many challenges. In our increasingly competitive world, stakeholders clamour for increasing returns, management teams demand exacting operational performance and increasing regulation requires close adherence to environmental policies. Does the freight industry not share these exact same challenges? How then to overcome them and become part of the “generation of prosperity”? To maximise our potential we must first and foremost, recognise the importance of the growing freight industry to the Australian economy. This growth for both the rail and road networks is robust. Whilst domestic freight is expected to grow by 3 per cent per annum to 2030, both rail and road volumes are expected to more than double, supported by demand for manufactured goods and mineral growth. Further, freight transportation is crucial to Australia. “(Transport and logistics)...is the oil in the engine of Australia, without which our nation would grind to a halt.” This quote is both evocative and apt. But, if one extends the metaphor, as freight industry participants must be meticulous in servicing their vehicles, should we not expect for the “oil in the engine of Australia” to be correctly checked, changed and upgraded. Australia’s tyranny of distance places considerable emphasis on the need for efficient freight networks, whilst capacity constraints and frequent congestion are now symptomatic of system limitations and inefficiencies. Further increasing costs and requirements as we transition into a low carbon economy are an additional, but essential burden. We are reminded that inaction and failure to invest in the environment could mean freight transport, which presently contributes around 4 per cent of Australia’s greenhouse emissions, could (without effective action) contribute over to 13 per cent by 2020 . 40

National Outlook summer 11

To maximise our potential we must first and foremost, recognise the importance of the growing freight industry to the Australian economy. This growth for both the rail & road networks is robust.

Only through coordinated and targeted action will the growing needs of the nation be serviced. Presently, road and rail freight are battling under-supported infrastructure that is creaking under the weight of the nation’s locomotives, wagons and trucks (BITRE has suggested that by 2020 congestion on Australian urban roads could cost the economy $20bn per year). Instead of the repetitive administrative processes, and inconsistent frameworks and policies, Governments, at both national and state level must together address capacity and regulatory concerns, support increased public investment, and increasingly tap valuable investment pools within the private sector. Without synchronicity of action, it becomes less evident how forecast growth at the local, state and national levels will be achieved. Encouraging signs have been forthcoming, such as the government’s Building Australia fund committing $7.6bn in 2009 for key infrastructure projects; and in cooperation

with the Nation Building Program, its allocation of $27.7bn towards numerous road projects. Rail has also benefited with the investment of $9bn from 2009-2015, including investment on the 10,000 route kilometres of the national freight network, and the pivotal Hunter Valley rail network with its linkage with the important coal logistics chain. Focussed public spending is one part of the equation; but other changes must still be made. For as the freight task increases, in what is already an overstretched system, Australia will need to make the right decisions. Through clear leadership, cohesive planning, and coordinated thinking, we will develop investment streams, support the freight industry and adhere to our environmental obligations. This will take us into the “generation of prosperity”.

Brian Ray Associate Director Westpac

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technology - state of play

BIM australia - state of play Building Information Modeling (BIM) has become a significant part of the Australian construction and building industry. Internationally BIM has been an important part of the transformation of the industry, large projects and changes to the way business is done. In Australia, there is little information about what is happening in the industry overall, what are the key drivers for BIM implementation, what some of the benefits and challenges are and the key issues concerning the industry. Consult Australia was concerned that we only have anecdotal evidence of what is happening with BIM particularly in the Architectural, Engineering and Construction (AEC) industry. To address this issue we invited key people in the industry to discuss their issues and challenges and where the industry was going so we would have a basis for assisting and supporting industry to make BIM a catalyst for change. The report BIM Australia – the State of Play provides an overview of the discussions at BIM forums in Perth, Melbourne, Brisbane and Sydney in October and November 2010. Approximately 35 participants attended each event comprising business owners, architects, engineers, constructors from selected companies. The forums were hosted by Consult Australia, The Australian Institute of Architects and Autodesk. At each forum BIM case studies were provided by leading firms from the architectural and/or engineering fields and participants were asked to identify the challenges, successes and failures of using BIM to create integrated principles within the Architectural, Engineering and Construction (AEC) industry, and discuss their use and requirements for BIM workflows. BIM implementation BIM is an integrated process for exploring building projects key physical and functional characteristics digitally before they are built. With BIM solutions, AEC professionals can deliver projects faster and more economically while minimising environmental impacts. BIM is a process generally developed in stages. The journey starts with the movement from 2D CAD to modelling with people increasingly working collaboratively. The initial stages take place in-house but then opportunities arise to integrate information from other companies, contractors and sub-contractors who are all working on the same building project. The final stage is integration with full information capture for the building. Many companies in Australia are in the modelling and collaborative stages. In some cases, companies are using both BIM and CAD arrangements for projects, while other companies are only using BIM. 42

National Outlook summer 11

The real benefits of BIM can be realised with the final stage of integration. The ability of cross functional teams such as architects, engineers, builders, contractors and subcontractors to work on BIM enabled models for design and construction projects is exciting. However, for most parts of the industry the capacity to do this is not there. Forum participants believe significant benefits will arise when there is fully integrated project delivery. In some cases there is duplication of models and each party can not work on the other’s model because of incompatible software, or different standards. There are also a number of issues which arise such as who owns the model, and who takes responsibility if the model does not line up with the real world. The implementation of BIM is expensive and for each stage it gets more costly. The main costs involve special computer software, retraining staff and moving to a modelling environment. It is more cost effective to move through each stage when implementing BIM than to make quantum jumps such as from 2D CAD to BIM. Benefits of BIM The benefits of implementing BIM may include: • Better decision making • Better risk and opportunity management • Improved documentation, quality of information • Less hours needed for design production • Improved coordination across disciplines • Improved ability for analysis and design audit • Quicker client approvals These benefits can be translated into improved productivity and profits for companies within the industry. Many business owners, managers and staff find the new 3D modelling environment exciting to work in with data, information management being important and their knowledge extended to use the BIM enabled processes. Barriers to BIM implementation In Australia, there are still significant barriers to the implementation to BIM which need to be addressed. There is no one standard AEC industry approach to BIM, so each company works in its own way without

common industry based standards and protocols. Forum participants realise there are considerable advantages to be gained if the industry works as a whole to set standards and protocols. Some forum participants talked of government involvement, others of a low-regulation environment, and others of setting up a high level task force. Most people agreed that the industry associations had an important role to play. Staff training is one of the major costs associated with the introduction of BIM. While younger staff straight from university have the visual and collaborative skills necessary to work in the BIM environment, existing staff have to be retrained particularly if they have to move from a CAD environment to modelling. Forum participants would like to see an industry approach to BIM training and would like to see a proactive approach from industry associations in this area. They would also like to see universities educate students with a multidisciplinary approach across faculties such as engineering and architecture. Students would then be ready for the collaborative real world of BIM. Not all clients are BIM ready, some do not understand what BIM is, others do not recognise it’s many different features. There is an emphasis in the procurement process on price rather than quality. There needs to be client awareness and an education campaign to assist clients in obtaining the benefits from changing to a BIM environment. Forum participants considered that BIM is here to stay. The AEC industry in Australia is increasingly being called upon to take leadership and make BIM work for all players in the process, including clients, to enjoy the considerable benefits that can result.

Benjamin Jung

“To me, studying at Melbourne means I am part of a cohort of students prepared for the various environmental and social issues of the future. My degree allows me to combine civil engineering with architecture, urban planning and environmental engineering.”

Meet the next generation Melbourne engineer. Meet Fergie Romero. She’s on-track to become a civil engineer at the Melbourne School of Engineering. Fergie will be one of our next generation of graduates, set to enter the employment market from 2012 with a bachelors degree and a Master of Engineering. Fergie’s studies will take her five years, commencing with a Civil Systems Major in the Bachelor of Environments. She will complete additional studies in a range of disciplines before her program culminates with a two-year, accredited Master of Engineering. When she graduates from the Civil stream of the Master of Engineering, Fergie will have strong specialist technical capabilities. She’ll also be equipped for the multidisciplinary demands of the professional world she enters, capable of communicating across disciplines and strong on teamwork. She will bring a breadth of life experience, derived from participation in community focused projects, professional placements and international study. In other words, she’ll be ready for work. www.eng.unimelb.edu.au/next-gen

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technology corner

BIM Software enables international collaboration and Aluminium plant expansion To increase the refining capabilities of the Alcan Gove aluminium plant from 2.0 million tonnes of aluminium to 3.8 million tonnes per annum, three calciners were designed by Outokumpu Technology and integrated into the plant. The calciner modules are monstrous, towering over eleven storeys high and each weighing more than 4 jumbo jets. They comprise the largest pre-assembled modules ever landed in Australia. Amongst other uses, calciners are used in plants to cause the decomposition of hydrated minerals at high temperatures, usually 1000-2100 degrees Fahrenheit. In the Alcan Gove aluminium plant they are used in the calcination of Bauxite. This is a process that occurs by removing crystalline water as water vapour through the use of a thermal treatment. The calciners produced for Alcan Gove helped with the expansion of the plant’s capacity to extract and produce aluminium. The expansion project saw the installation of a third Alumina Refinery Stream. Baigents Pty Ltd were chosen to design and shop detail all the steelwork needed for this enormous project, as well as the design and documentation of the foundation rafts. This particular project realistically had two key players during the design process; the German process engineering company ‘Outokumpu Technology’, and the Australian structural engineers ‘Baigents Pty Ltd’. Baigents Pty Ltd modelled the structural steel from scratch for engineering design and steel fabrication purposes. Outokumpu Technology were using Intergraph’s PDS for the design of the processing equipment. Both parties needed to be able to collaborate one way or another. A project of this nature is bound to be constantly changing, so it was paramount that the lines of communication between the two companies were open at all times. With Outokumpu Technology being based in Germany, Baigents Pty Ltd in Australia, and the fabrication and assembly completed in Thailand, it was evident that the distance between all three could prove to be a challenge. In addition to that, the project had to be completed efficiently and on schedule in order to beat the Thailand monsoon season for fabrication reasons and cyclone season for sea transportation reasons. The solution to these challenges was to be found in the use of 44

National Outlook summer 11

BIM (Building Information Modelling) software, and Tekla Structures won this task. BIM software, allows for easy and streamlined collaboration between all parties. Its ability to easily share data allows constant evaluation of where a project is headed. It also prevents mistakes before they can occur, substantially reducing the amount of rework costs. This is critical in a project of this nature. Everything is modelled in 3D and information can be easily shared, making the distance between the parties almost irrelevant. Drago Sudaveric from Baigents explains that “The concept of the project kept changing, as is the case with many industrial projects, but with BIM software it wasn’t the fiasco it could have been. All the information needed goes into one central database. We were dealing with 100 tonnes of steel every month and without this automation we would not have met our milestones.” Baigents Pty Ltd by passed the typical project delivery approach of producing structural steel drawings from which to begin steel detailing. Instead Baigents’ steel detailers

BIM software, allows for easy and streamlined collaboration between all parties. Its ability to easily share data allows constant evaluation of where a project is headed. It also prevents mistakes before they can occur, substantially reducing the amount of rework costs.

worked in parallel with its engineering designers using engineering sketches to model the structural steel from scratch. The transportable modules and calciner structure were analysed with Strand 7 finite element analysis software. This ensured the structural integrity when the modules were transported by road, on board the ship at sea and fully assembled as an operating structure in Gove. During this time they could also be subjected to cyclonic winds. Outokumpu Technology used Intergraph’s PDS for design of the processing equipment. They supplied Baigents with a 3D DGN File of the mechanical equipment and piping for referencing into the Tekla model, which made checking for clashes easy. The effortless collaborative nature of this software meant that Baigents could supply Outokumpu Technology regularly with a 3D DGN of the structural steel for cross reference. Outokumpu Technology also supplied Baigents with a 2D Cad (.dwg) file of the structures footprint, which was then overlayed onto the Tekla model. This ensured that everything would fit when the units were delivered to site. The Alcon Gove G3 Expansion project had many possible complications, but with the use of this BIM software package, the vast majority of complications were designed out during detailing thus avoiding site and fabrication yard issues. BIM’s ability to streamline and enable easy collaboration meant that the geographical distances weren’t as problematic as initially anticipated at the beginning of the project. Tekla’s ability to solve problems before they arise, (e.g. clash detection), enabled the project to be completed on schedule avoiding the fast approaching monsoon and cyclone seasons which prevail in Thailand. Overall BIM software has demonstrated on this project the ability to manage significant design changes yet still deliver a large project accurately and efficiently.

Paul McLeod General Manager Pacific Computing

energy Recycling

Heat Transfer: The Key to Energy Capture and Recycling of industries that generate hot liquid waste, to recover energy from that waste by using their hot, outgoing fluids to heat up clean, incoming fluids. This is done through the use of heat exchangers. Back when energy was cheap, the cost of energy-recycling equipment made it just as viable to let it go to waste; with the hot liquids used or generated by manufacturing or service providers, being poured directly into collection ponds or retention basins where the heat would simply dissipate into the atmosphere. However as energy costs continue to rise, the benefits of capturing and reusing this heat energy become increasingly harder to ignore.

It would be fair to say that most people these days, see a value in recycling. Paper, glass, furniture, building materials – extending the lifecycle and value of these items is seen as a positive thing. So why not do the same for energy? Energy recycling is gaining considerable momentum at the moment, particularly in the area of Heat Transfer; which allows a vast range

For example, in an industrial laundry application, you could be processing as much as 10,000 litres of water an hour. If your outgoing water is 60 degrees and your incoming water is 20 degrees, you have to achieve a 40 degree temperature rise – that’s 465kW of heating. Through the use of heat exchangers however, you can bring that outgoing water down to 30 degrees whilst heating the incoming 10,000 litres up to 50 degrees, which will allow you to recover about 350kW.

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Assuming you were in Melbourne, paying around 4-5c per kilowatt hour for gas, you would be talking about saving 350kW by 4-5c every hour. Multiply that by 10 hour shifts, 5 days a week – and you can see that there are considerable benefits to be had there, both financial and environmental. Thanks to recent advancements, new generation heat exchangers like the Mueller Accu-Therm can also provide reduced pressure loss whilst maintaining high overall heat transfer co-efficients; which in turn reduces both the energy consumption and capital cost, as it requires smaller pumps than traditional heat exchangers. The advantages of lower pressure drops are multiplied in the multi-stage units that are frequently used in heating, cooling, regeneration and pasteurising requirements. Double wall plates are used to enhance integrity for processing critical quality products and increasing assurance against product/service fluid cross-contamination. All of which makes the benefits of energy capture and recycling, difficult to ignore.

Greg Haak Teralba Industries Pty Ltd

energy efficient Corner

Energy Efficient Corner The Government’s Building the Education Revolution program (BER) has seen demand for energy efficient ventilation products skyrocket around the country, as an alternative to the use of traditional energy intensive air handling systems. Both traditional wind powered ventilators and the newer hybrid mechanical wind products, have been used in response to the need for more carbon friendly means of improving educational environments Traditionally wind turbine ventilators have been used on school buildings in the past to remove heated air during summer from roof spaces allowing for its replacement through the eaves by cooler, ambient air. The result has been reduced thermal load on ceiling insulation and therefore better overall conditions in the classroom. In more recent years, ceiling grilles were used to enable replacement air to be drawn direct from the classroom. This gave the added advantage of achieving suitable levels of air exchange, improving classroom air quality, as well as improved comfort. Electric dampers were installed in ventilators to enable heat to be retained during winter although this always came at the cost of reduced air exchange within the classroom, which has been an issue where unflued gas heaters were installed.

During the following day as heat attempts to build it will be partially neutralised by the stored cold. This process delays heat build up in the classroom.

National Outlook summer 11

Extensive research undertaken by CSR Edmonds has shown that:

times wind power rates. The hot air from the day is expelled and cold evening air brought into contact with walls and floors which in turn become thermal storage devices.

1. To be effective an energy efficient ventilation scheme it must act directly on the air within a room, not just on the attic air above a room.

During the following day as heat attempts to build it will be partially neutralised by the stored cold. This process delays heat build up in the classroom.

2. A hybrid vent system should remove air in mechanical mode when external temperatures fall below internal temperatures which generally occur after 5.30pm. This enables night flushing to occur at optimal velocities and air change rates to ensure maximum absorption of cooler temperatures by walls, floors and structures it ensures that by early morning room temperatures will reach the minimum overnight temperature therefore helping to neutralise early heat build up.

As part of the BER program, NSW Government schools chose to use wind powered ventilation technology on all school buildings. Large numbers of Victorian public and private schools, NSW private schools and some Queensland private and public schools under the BER chose to install hybrid ventilators. To meet best practice any hybrid vent should: 1) Use electronic commutating motor technology which is 85% energy efficient and compares with 55% for the older shaded pole design motors.

3. During the day, a trickle ventilation system is required to meet ventilation codes for removal of pollutants including control of CO2 levels

3) Produce noise levels less than 47dbA @3m

4. During daytime hours the impact of radiation through windows should be minimised by use of high glass otherwise the overnight work is nullified.

4) Not have any motor or fan blade located in the direct path of air travel otherwise flow rates during natural mode will be impeded.

5. The correct level of ceiling insulation applicable to the relevant climate zone should be installed.

Hybrid vent technology is without doubt the way of the future for providing low carbon air comfort solutions for low level commercial buildings, ventilation shafts, schools, warehouses, logistic centres and even homes. They provide enhanced performance and controllability over normal wind powered vents and greater flow rates for very modest energy use. While results can never equal that of a well designed air conditioning system, they do offer:

Provided optimal capacity of hybrid ventilation is applied, it is possible to achieve temperature reductions of up to 4ºC compared to a non vented building. This is significant in a world seeking to reduce its carbon footprint.

2) Provide flow rate efficiencies better than 38m³/watt

• An economical capital cost. The advent of hybrid ventilators such as ecoPOWER, which combine energy efficient mechanical operation with wind power, has seen the use of this technology as a means for controlled application of overnight thermal storage. By this process, the hybrid vent can operate under wind power during the day to remove some heat load from the classroom and roof space and provide essential free air exchange to students. Then, at night, when external temperatures decrease below internal temperatures, mechanical operation can commence thereby magnifying flow rates 3-4

Hybrid vent technology is frequently used to achieve standard ventilation rates for classrooms, halls and gymnasiums during the day, as required under ventilation standards, and at night through a switch to mechanical mode, the provision of night flush and subsequent thermal storage.

• Low operating costs. • Negligible impact on GHG production. • Fresh air changes as prescribed under AS1668.2 for classrooms and other occupations. • Improved conditions compared with simple wind turbines.

Allan Ramsay General Manager CSR Edmonds

recruitment corner

Retaining Staff and Employee Engagement Are your employees happy? Recent employment surveys in the post Global Financial Crisis (GFC) era, conducted with leading Australian multi-national organisations, found that when employers engage with their staff, they are more enthusiastic about their work. According to Sweeny independent research as of January 2009, only 22 per cent of employees were happy at work. Unfortunately for those who arent happy, the supply of job opportunities throughout 2008/9 meant a career change was highly unlikely as a result of the impact from the GFC. A recent survey by Seek claimed that “dream jobs come out of working for companies which care, support and therefore provide a nurturing environment for their employees”. The top reasons for employees determining dissatisfaction and reasons for leaving were:

A recent survey by Seek claimed that “dream jobs come out of working for companies which care, support and therefore provide a nurturing environment for their employees”.

• Poor management and leadership 28% • Lack of recognition

26%

• Wanting a new challenge

24%

• Remuneration

21%

• Stress

20%

• Boredom

17%

• Poor corporate culture

17%

• Poor work-life balance

17%

Whilst we consider the motivators as to why people leave a company, we must also recognise what people love about their jobs. These include: • The people they work with

76%

• Working environment

67%

• Location

66%

• Variety of work

63%

• Benefits/conditions/hours of work 62%

As the economic market improves, the influx of job opportunities is also improving; providing a greater level of job security. With that, we must consider all aspects of employee satisfaction and employee engagement in order to attract, retain and motivate staff. What can companies actually do to ensure they are ahead of the competition? Crawford Recruitments Employee survey 2010 This survey found 10 prevalent initiatives when assimilating feedback from employees from the Engineering, Development and Project Management sectors: • Structured career development programs and visible internal career opportunities

• Job security

61%

• 360 degree appraisal system

• Direct manager

60%

• Management training courses for managers • Company awards and incentives • Company social events • Emails of praise by senior management • Independent annual remuneration benchmarking • Flexibility surrounding working hours, in particular for those with children • Leading IT systems to allow flexible working locations when required • A strong social responsibility The financial pressures of the GFC saw many organisations cut cost across staff development. It is becoming extremely evident that those who continue to delay this investment will witness increased levels of employee dictated

departures. A study by McLeod in 2009 believes there is a lack of awareness by CFOs of the potential ROI from investment in their human capital. There is a misguided belief that employee engagement and well being initiatives are ‘soft and fluffy’ and have little relevance to the bottom line. Clive Leach from Better Careers states “employee well-being and engagement programs have seen literally millions of working lives transformed as people have been supported by their organisations and managers. Organisations around the world are recognising the importance of engagement initiatives with their employees’; providing significant individual return and overall organisational success”. Without doubt, those who are investing in their employees will be well positioned for the future. Employee engagement programs are not reserved for the large corporate groups; in fact the smaller organisations would theoretically have the opportunity to initiate change more quickly. Factors that can be influenced by any company include a strong management platform, transparent and open communication, rewards and incentives, flexible working arrangements and community engagement initiatives; each of which will greatly impact the overall productivity of employees.’

Heidi Crawford Director Crawford Recruitment summer 11 National Outlook

state news

vic DIVISION The Victoria Division would like to thank outgoing Chairman Jeff Mayo, Halcrow Pacific, for all of his hard work and support during his tenure. We would like to welcome Phil Duthie, GHD, as Chairman. The Victoria Division has continued to develop its relationships with Victorian Government Departments and Statutory Bodies. Members of the Victoria Division Committee continue to meet with VicRoads, and VicRoads are providing notification for relevant seminarâ&#x20AC;&#x2122;s to Consult Australia members. Members of the Victoria Division Committee have also met with the Victorian Building Commission to discuss matters of interest. The Victoria Division End of Year Function was held in November at AAMI Park. We were pleased to have Peter Bowtell and other engineers from Arup who worked on the project conduct a site tour of the stadium, before moving into the function room where we enjoyed a cocktail function and heard from the keynote speaker, Philip Rowe of Cox Architects, who was the Design Architect on the project. It was an excellent showcase of an innovative piece of Victorian sporting infrastructure. The Victoria Division is pleased to announce that the FutureNet Business Leaders Course will be run in Melbourne in 2011. The Course develops core business, management and teamwork skills for the future leaders within your business. These skills are then practically applied in a team infrastructure bid. For all enquiries, please contact Kate Di Gregorio on (03) 8699 7700 or kate@consultaustralia.com.au. The Drilling Safety Working Group, which is a collaboration between Consult Australia and the Australian Drilling Industry Association (ADIA), is continuing work to determine contractor prequalification requirements for drillers working for consultants. It is envisaged that the prequalification will take the form of a 20 page document and a shorter onsite pocket guide. Further details will be provided to members when the guidelines are ready for consultation. Membership of the Drilling Safety Working Group: Simon Fitzgerald (ADIA); Ron Terpstra (Boart Longyear); Kate Di Gregorio (Consult Australia); Patrick Endycott (Douglas Partners); Peter Brown (Golder Associates); John Hickey (Health and Safety Engineering); Mike Mercuri (Matrix Drilling); Rob Wright (Parsons Brinckerhoff ); Amanda Benson (Qanstruct); Ian Fry (Strata Drilling); Steve Brazil (URS) We wish to welcome onboard St George Bank as our new Division sponsors. We would also like to thank BST Global for their continued support as our sponsor, and URS for its continued hospitality and generosity in providing an office for Consult Australia Victoria.

National Outlook summer 11

tas DIVISION

In November, Pitt & Sherry hosted a meeting with key staff within the DEDTA. This provided the opportunity for Consult Australia and its members to establish a positive relationship with the Department and for members to raise the issues most pertinent to the industry. Following on from this, meetings with the Department of Planning and Development and also with the ICN Tasmania are also currently being organised. We wish to thank Pitt & Sherry for kindly sponsoring this meeting.

The planned end of year luncheon will now be a New Year function for late January 2011. Details will be provided to members once confirmed.

state news

SA DIVISION As 2010 draws to a close, the SA Division can look back on a busy and productive year of many changes both nationally and on a state level. October also saw the division vote in the 2010/11 committee at the AGM and we welcome the new faces around the executive committee meeting table. Details of new committee members and contact details can be found on the SA Division page of our website www.consultaustralia.com.au. Meetings with Stakeholders & Industry Associations Liability remains a significant issue for the Division members, with an ongoing challenge combating onerous contractual conditions. Consult Australia received no formal response to our proposal for clarifying amendments to the Treasury Guidelines on Liability, however late in the year a meeting was held between Wade Phillips of DTEI, Nicola Grayson (Consult Australia), Jerome Argue (SA Chair) and Jan Irvine (Consult Australia). At this meeting Consult Australia reiterated the desire of members to be engaged on risk-sharing arrangements that were equitable to all, and promoted the adoption of the newly revised AS 4122 for all government contracts engaging consultants. We will continue to prosecute this over the coming year with the publication of AS4122. Upcoming Events Our 2010/11 Calendar of Events is on the website for members to peruse and mark dates in their diary for the coming year. Recent Events The September CPD Breakfast “Sustainability – Using Recycled Aggregates in Road Building in SA” was held in conjunction with the SA Division of IPWEA. The breakfast was attended by over 100 professionals working in the industry and feedback was extremely positive. We thank our sponsors of the event, Sustainable Aggregates South Australia

Sustainability – Using Recycled Aggregates in Road Building in SA

SA’s No. 1 Business Bank.

The November CPD Breakfast “Energy – Supply V Demand in SA” explored questions concerning the estimated increased energy demand in South Australia and how the demand will be met and managed, along with how renewables will be delivered in a climate of increasing energy demand and what opportunities exist for those consulting in the Built and Natural environment to be a part of South Australia’s energy future. Guest speakers were David Swift, Executive GM Corporate Development, AEMO and Vince Duffy, Executive Director – Energy Division, Department of Transport, Energy and Infrastructure. The Boardroom Luncheon Series ( strictly members only) continued with our last lunch for 2010. Our last minute guest was The Hon Paul Holloway, Minister for Urban Development & Planning, who we thank for joining us at short notice following Premier Rann’s unexpected knee surgery. Discussions with Minister Holloway centered around the governments future direction regarding development around TODs as well as the potential national registration of engineers. It is hoped Premier Rann will reschedule for one of our lunches early next year. FutureNet SA recent Events The October FutureNet Breakfast – SA Health & Medical Research Institute Facility was one of the most popular to date with over 140 attendees. Our guest speakers outlined the overall vision for the North Terrace Health Precinct (The New Royal Adelaide Hospital and the SAHMRI projects) from SA Health’s Perspective, what the SAHMRI is, its purpose, directions and its requirements for the facility. Also explained was the interpretation & delivery of the client (SA Health & SAHMRI) vision, in particular the benefits of an integrated design process between architecture and engineering in the production of a world class facility and iconic design. A new, exclusive November Networking Night was held in the striking Bang & Olufsen showroom on Grenfell Street where our young business professionals enjoyed a well earned Friday night drink and first class canapés while Mr B&O Adelaide, Marty Powelll, invited them to see the best in audio/visual entertainment equipment of outstanding quality styled in timeless Danish design. Our generous host rounded out the evening donating a fantastic prize which saw a very happy winner in Tyson Jones of SKM.

We thank URS for its continued hospitality and generosity in providing an office for Consult Australia South Australia.

summer 11 National Outlook

state news

nsw DIVISION

The Division wishes to thank its fabulous sponsors for contributing to such a successful year. Platinum sponsors include Autodesk and St George Bank and Gold sponsors include Crawford Recruitment, BST Global, WHK Horwath and KSB. Thanks must also go to the various other sponsors throughout the year which include FutureNet sponsors and single event sponsors.

Platinum Sponsors:

Gold Sponsors:

I would like to thank Mike Thackray, Chairman of the NSW Division, for the sheer amount of time, energy, passion and enthusiasm that he puts into the Division. The success of the Division has been largely driven by Mike’s leadership and the initiatives he has implemented in his time as Chair continue to drive the Division forward. Thank you Mike! Consult Australia’s success relies on the commitment of the people employed in our member firms. I sincerely thank all members of the NSW Division Committee and our FutureNet representatives for their efforts and contributions over the past year, including: • Mike Thackray – Parsons Brinckerhoff • Tim Hoare - Bonacci Group • Jamie Shelton – Northrop Engineers • Colin Henson - Arup, • Graeme Shoobridge - Mott MacDonald Hughes Trueman • Rick Pilz - GHD

• The successful March 2010 Central Coast Community Forum on the findings of the “Sydney Towards Tomorrow” report recommending governance restructuring • The success of the 2010 FutureNet Business Leaders course in attracting its full quota of young professionals from a wide range of disciplines in the public and private sectors including our first architect

• Brendyn Williams - Pentagon Management

• Strengthening our relationships with various professional organisations and associations including Engineers Australia Sydney Division, APESMA, the Royal Institute of Chartered Surveyors and the Alliancing Association of Australasia

• Adrian McKeown – Randwick City Council

• Our highly successful NSW Division Annual Dinner in May

• Hugh Tait - Opus

• The lively and well attended lunch meeting with Large Firms’ NSW Managers in May

• Garry Taylor - GHD

• Felix Gamon - Arup • Charles Milazzo – Aurecon • Rick Hopkins – Aurecon Thank you to all branch committee members for your time, effort and contribution. You have certainly contributed to the success of 2010 and the Division looks forward to seeing branches embrace the new name change and having success in 2011. The Division would like to wish Jamie Shelton, who is a current active Division Committee Member, past Chairman and past Treasurer all the best as he takes on the Consult Australia National President role in December. Following the Annual General Meeting held in August, Mike Thackray will remain as Chair of the Division for 2010-11, Graeme Shoobridge from Mott MacDonald Hughes Trueman has been elected Vice-Chair and Tim Hoare from Bonacci Group has been elected Treasurer. Highlights of the NSW Division’s activities during the year have included:

• The lively debate generated by the Infrastructure Round Table’s landmark report “Sydney Towards Tomorrow” launched in October 2009

National Outlook summer 11

• The outstanding Engineering Week Bridge Building Challenge which continues to grow in popularity with our university students

state news

• The enthusiastic support of all of our sponsors at Division events • The FutureNet combined Sydney & Newcastle Hunter Valley Wine Tour. Mount Pleasant visit (below) • The FutureNet Business Leaders ‘Industry Briefing Session’ which was held at Sheraton on the Park where selected Industry executives were invited to attend. Upcoming events include the Port Botany Site Visit, FutureNet 2011 Launch, Newcastle FutureNet event on the secrets of winning work, the 2010 FutureNet Business Leaders Awards Dinner and a small/medium firms state managers meeting. Registrations are also open for the 2011 FutureNet Business Leaders Course. Please contact NSW Division Office for further information.

ACT DIVISION

NSW is meeting with Minister Tony Kelly and the Building Professionals Board to discuss the impact that the Environmental Planning and Assessment Amendment (General Commercial and Industrial Code) Regulation 2009 is having on fire engineers in New South Wales. Certification issues are also being discussed with the BPB. A request for issues has been sent to members regarding issues with Sydney Water Contracts.

A second meeting between Consult Australia and University Representatives is being held to discuss the further development of the Civil Engineering Course in Canberra as well as the format of current courses. Consult Australia has representatives on numerous reference groups including, the Chief Minister’s Industry Reference Group and ACTPS Roundtables.

I wish to start by thanking all members within ACT that have successfully contributed to the successful ‘reinvigoration’ of ACT Division. Special thanks must go to the members of the ACT Division Committee, led by Max Bomben, for their time, effort and contribution to the Division. The committee meets on a monthly basis and consists of the following representatives;

The seminar on ‘What is a Sustainable Community?’ attracted over thirty members and a calendar of events for 2011 will be released to members shortly. A sold out site visit to Cotter Dam (below) was held in November and due to the popularity of the event, another visit will be held in early 2011.

• Max Bomben – Brown Consulting • Alan Edler – Norman Disney & Young • Andrew Springall - AECOM • Brad Williams – Sellick Consultants • Callum Heinrich – Northrop Engineers • James Henriques - AECOM • John Randall - Indesco • Julie Pearson – Brown Consulting • Kevin Foster - Aurecon • Peter Cowper - SMEC • Ron Forrester - GHD • Warwick Jones - SMEC A special thanks to the sponsors of FutureNet ACT for their generosity and support in getting FutureNet off the ground in ACT. Gold sponsors are Brown Consulting and Northrop Engineers. Silver Sponsors are Aurecon and Sellick Consultants.

FutureNet’s final event was held in November and focused on whether young people should invest in Shares or Property. This popular event was held at the Novotel Canberra over breakfast and the next event will be held in March 2011. Due to the activity within the Territory, two sub committees are being introduced being Buildings & Infrastructure. These committees will consist of up to ten representatives from member firms and the Chair will represent the committee at Divisional Meetings. Sponsorship of the Division is now available and information can be obtained by contacting ACT Division Office on (02) 9966 4966.

summer 11 National Outlook

state news

qld DIVISION

In addition to the regular breakfasts and information sessions held, two site visits were organised in recent months. The first was to Wyaralong Dam (insert photo), and the second to the Clem7 operations. A follow up visit to Clem7 during a scheduled shut-down was also organised. Feedback from members was extremely positive and further opportunities for site visits will be investigated in 2011.

QLD AGM and Division Dinner At the AGM held in August Ben Coxon, Aurecon, completed his two year term as Qld Chairman. Frank Vromans, Arup, was appointed as new Chairman with Satyajit Datar, GHD, stepping into the Deputy Chair role. The AGM was followed by dinner at Customs House with Treasurer Andrew Fraser MP providing the key note address. Other recent Events QLD Division sponsored the 2010 Brisbane South Science & Engineering Challenge - an important initiative that inspires high school students through fun and practical hands-on activities about the opportunities available in science, technology and engineering. Up to 500 year 10 students participated as teams in competition with each other over three days. Stakeholder engagement Department of Transport and Main Roads Consult Australia Queensland Division continue to have a collaborative relationship with the Department of Transport and Main Roads (TMR). Over the last few months the following activities/discussions have been held with TMR: • Contract Review • Principal Arranged Insurance workshop • Pre-qualification system • Performance Reporting • Local Industry Policy • National Disaster Relief and Recovery Arrangements briefings • Specifications Workshop • Bridge Drafting Workshop Other Industry Associations Meetings have been held with the Civil Contractors Federation, Queensland Resources Council, Queensland Major Contractors Association and IPWEAQ over the last few months. Development of good relationships and communication channels with our affiliated organisations is seen as a key area and issues that have been discussed include: Registration of Engineers, development of young professionals, contract conditions. We will endeavour to keep meeting these and other associations on a regular basis. Local Buy In late October Local Buy was provided with a paper from Consult Australia outlining the collated concerns our members had with Local Buy general conditions of contract for engineering services BUS179-0908. Local Buy have indicated that they are committed to working with industry to improve processes and we will look forward to meeting with them again soon to discuss our submission.

National Outlook summer 11

Member Engagement The second regional teleconference for 2010 was held in late November. This was another opportunity for members located outside Brisbane to engage with the Qld Division committee and provide input into the committee’s future activities. FutureNet On 20th December, FutureNet Qld held their final 2010 event. The event titled “Adapting to Change: Career Chameleons” was privileged to have Lord Mayor Campbell Newman as the guest speaker. The Lord Mayor provided attendees with a frank account of his professional background and life experience. He also provided insight into the attributes he looks for when hiring young professionals to his team. The FutureNet AGM was held on 25th November, and a new committee will be announced in the next National Outlook. Fidic Competition We were pleased to have the assistance of Lord Mayor Campbell Newman in presenting the winner of this year’s FIDIC competition. The three finalists were: Thomas Duhs, AECOM; Nayef Mohyud-Din, Arup; and Toby Turner, GHD. All three finalists provided very different approaches to the topic which was: “Discuss challenges faced by population growth on infrastructure and the role of innovation in solving this crisis in a carbon friendly world” Following interviews with the finalists and lengthy deliberations the judges were pleased to announce Toby Turner, GHD as the winner. Toby now has won the opportunity to attend the FIDIC conference in Tunisia in 2011. Both the FutureNet and Qld Division committees congratulate all entrants. The responses of all three finalists will be released soon on the Consult Australia website.

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FutureNet Business Leaders The inaugural Queensland FutureNet Business Leaders Course culminated on 30 November with team presentations and an awards dinner. Details of the winners are available on the Qld Division website. We are now seeking expressions of interest for the 2011 course. For more information about any of the Qld activities mentioned please contact Qld State Manager, Stacey Rawlings on 07 3020 3403 or via email qld@consultaustralia.com.au.

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summer 11 National Outlook

state news

wa DIVISION 2010 has been an active year for Consult Australia in Western Australia. We have seen an increase in activity from members as we addressed issues over Building the Education Revolution (BER) as one of the answers to the Global Financial Crisis, Engineers Registration Act, contractual liability and PI Insurance. The WA division has continued its emphasis on influencing decision making bodies through lobbying and advocacy, educational seminars and various member events. This year it was pleasing to have the ACEA name change to Consult Australia launched at Frasers, Kings Park, West Perth with over 400 attendees including Engineers, Architects, Project Managers, Government Departments and Universities. The address was given by Megan Motto CEO and Basil Georgiou of Jackson McDonald, a major long time sponsor of Consult Australia ( 8 years ). National President Paul Reed, a former chair of the WA division was also in attendance. It is pleasing to see the Consult Australia brand in Western Australia go from strength to strength which has been underpinned by a dedicated committee, a dynamic State Manager and a very strong sponsorship base. To that end, we recognize our loyal sponsors - Jackson McDonald, BST Global, Hays Engineering, St George Bank and WA Business News. We welcome new sponsors Grant Thornton and Autodesk. Working groups Consult Australia continues to participate in a number of local working groups and lobby for our members, including: • CEIID • WA Road Construction and Maintenance Industry Advisory Group • Urban Development Advisory Committee (UDAC) • The Regional Education and Careers in Highways (REACH) Foundation • Australian Council of Built Environment Design Professions – BEDP • Building Management & Works formerly Department of Housing & Works consultative committees CEIID – Centre for Excellence and Innovation in Industry Delivery Consult Australia through our Chairman Judith Uren and President Paul Reed continues to have a strong relationship with CEIID. In July CEIID hosted State Asset Investment Program (SAIP) 2010-2014, which outlined the asset investments the WA Government will be undertaking in the coming four years. It included a breakfast event where Bill Marmion, Minister for Commerce, Housing, Finance and Innovation about Government objectives and priorities related to state asset investment. The subsequent briefing sessions were broken into two streams covering capital works in buildings and

National Outlook summer 11

infrastructure. The presentations delivered on the day can be accessed via the Events section of the CEIDD website located at http://www.ceid.wa.gov.au The Australian Council of Built Environment Design Professions (BEDP) The BEDP is an umbrella group that brings together associations representing Architects, Engineers, Planners, Quantity Surveyors and Project Managers. WA BEDP has been very effective and Consult Australia remains an enthusiastic member of the WA Committee of BEDP. The main benefit of BEDP comes from the communication and sharing of information between the various professional associations. In addition to this, key issues that BEDP has progressed over the past year include: -D etailed response and ongoing communication with Building Management and Works regarding the document “Works Reform – Business Solution Plan.“ This document is of great significance to Consult Australia members as it proposes major reforms to the planning and project management of the design, construction, maintenance and leasing of government non-residential buildings. - I nitiation of two “pilot” projects to monitor the practical application of the WA Code of Practice for Safe Design of Buildings and Structures. -O ngoing negotiations with the Building Construction Industry Training Fund seeking access to funding for training of building construction industry professionals (including architects and engineers) . onsultation with Building Management and Works regarding -C fair and efficient processes for use of Consultancy Panels for the appointment of consultants for government capital works projects - Arranging a well attended and well received BIM seminar Consult Australia Events • Professional Engineering Seminar 2010 In its Fourth year titled “Development of Future Engineering Leaders,” Consult Australia sponsored this full-day seminar at Frasers Restaurant and Function centre which targeted Curtin University. Over 400 third and fourth year students attended. Speakers presented on a range of topics to assist students in their future careers and provide an overview of what it is like to work for an engineering company in the city. The lunch was a corporate style function in the marquee with 40 tables hosted by representatives from Consult Australia, providing students with the opportunity to discuss aspects of employment and the industry. Consult Australia CEO Megan Motto closed the event and” Mick the Demotivator” gave an entertaining speech at lunch.

state news

Industry Sponsors included GHD, URS Australia, Wood and Grieve, Aurecon (formerly Connell Wagner), Norman Disney & Young, Water Corporation, Parsons Brinkerhoff and Arup. Due to the success of the Consult Australia / Curtin University Seminar the University of Western Australia (UWA) will now participate with Consult Australia in running the first Consult Australia / UWA Seminar late April 2011. This will result in over 1200 engineering students attending these seminars in 2011. • Consult Australia Breakfast Series Consult Australia runs a successful breakfast series every year with up to 90 attendees participating. • Employee to Employer Seminar With speakers from sponsors Grant Thornton and Jackson McDonald, the WA Division started a seminar series aimed at associates and future leaders of consulting firms who have the ambition to transition from employee to owner. The workshop provided an insight into the broader corporate, accounting and taxation concepts that come with equity in a business. • Main Roads WA Main Roads WA has enlisted Consult Australia to assist them in advertising and coordinating Main Roads Information Sessions. Agenda items include design standards including changes and developments, and consultant contracts including the Engineering & Technical / Bridge Design Services Panel Contract.

Financial Crisis, Changes of Government-State and Federal, D&C contracting and government contracts. FutureNet 2010 has seen the WA branch of FutureNet continue to grow and strengthen its brand recognition through the industry. Each event has been sold out with more table sponsors pushing to become involved; to sponsor sending their staff and guests to our six events each year. Such strong support has seen us branching out to new venues to match the demand and allowed us to maintain our high quality of speakers this year. General Consult Australia continues to sponsor the first year Foundation Project Room at Curtin University Engineering, which reinforces our ties with this tertiary institution.

Engineers & Architects Roundtable 2010 Following the success of the Architects Roundtable in previous years, another luncheon session was held in 2010. The aim of the Engineers & Architects Roundtable is to bring a group of leading West Australian Architects and Consulting Engineers together to discuss issues of common interest with a view to increasing the understanding and cooperation between the two professions. High on the agenda this year was the Global

Consult Australia Outlook for Consulting December quarter 2010 Consult Australia continues its unparalleled economic profiles of consulting firms in the built and natural environment. Consult Australia Outlook 2010 is still available to purchase from www.consultaustralia.com.au, while we continue to support our members through our free quarterly economic updates. The December quarter update, providng the latest market trends has been released for download at: http://www.consultaustralia.com.au/content/default.aspx?ID=115.

redr australia’s year in photos 1 July 2009 – 30 June 2010 RedR Australia’s year to 30 June 2010 was again one of perpetual standby to respond to the dramatic humanitarian crises in many nations of the world.

South Sudan

The trouble-spots which attracted most RedR Australia energy, though not always media attention, were undoubtedly Samoa (tsunami), Sumatra (earthquake), Philippines (typhoon), Sri Lanka (displaced personnel after conflict) and Haiti (earthquake). It was a sad humanitarian reflection that our people were required in 20 different countries.

South Sudan – Christine Clarence was based in South Sudan with UNICEF in a child protection role. Hundreds of children were abducted in 2009 during cattle raids and conflicts between rival pastoral tribes. Christine was responsible for the logistics of the rescue and return of 27 children one week and a mother and her five children three weeks later. Christine noted the children were nervous about the flights but were happy to be going home and being reunited with their families.

The International Assignment Service supported 50 people during the period, completing 56 assignments to a total of 190 field months.

Haiti

No new Register additions would have been possible without the Training Service delivery of core courses which are pre-requisites for deployment, and more specialised and customised courses which reflect UN calls for particular staff. Training was delivered to 322 participants in 2009-2010. Training has wider implications than the Standby Register. Trainees participated on behalf of Government departments, including health sectors where an international mandate has been assigned or created. Other non government aid agencies sent their personnel to RedR Australia for training, and we were commissioned to train in East Timor, India, Japan, Thailand, Malaysia, New Zealand and Tonga. North Darfur North Darfur – Rosal Fischer trained and mentored social workers and Government officials to help local children rebuild their lives following years of conflict and poverty. Rosal spent many hot and dirty days in the three markets of El Fasher, building strong working relationships with the street children and using a child-centred participatory approach to ensure the voices, needs and priorities of the children were heard.

National Outlook summer 11

Melbourne - Yolanda Cowan, the first of eight RedR Australia deployees sent to Haiti following the earthquake, was farewelled by members of the International Assignment Team, Jennifer Martinico, Helen Widdowfield and Rhodri Wynn-Pope, following her predeployment briefing. Yolanda noted, “I feel honoured to be given the opportunity to use my skills to help at such a devastating time for both the people of Haiti and the United Nations.

Philippines Philippines - Ellen Hynes (right) loading supplies onto UNHAS Mi-171 helicopter to be delivered to the mountainous Cordillera Administrative Region. Communities had been isolated by landslides and damaged infrastructure including roads and bridges during Typhoon Parma (known locally as “Pepeng”).

most rewarding aspect of my assignment is the opportunity to positively impact the lives of children in oPt and Israel long after I have returned to Australia. I have never previously worked on a project that has the potential to have such a large impact on so many people”.

sri lanka Sri Lanka - RedR Australia supported the United Nations relief effort in Sri Lanka through the deployment of three emergency water, sanitation and hygiene engineers, a logistician and a humanitarian affairs officer. The deployees worked to provide civilians living in the crowded camps an existence as dignified as possible, in an incredibly challenging environment. A child is pictured in a bathing space.

tonga Tonga - RedR Australia Associate Trainer, Professor Regan Potangaroa (pictured demonstrating a water tester) assisted with the delivery of the Pacific Emergency and Disaster Management workshop, organised by UNHCR eCentre and the Tonga National Disaster Management Office.

india Melbourne - Humanitarian Trainer, Rich Parker demonstrates a release technique to a multidisciplinary team of medical professionals at The Alfred. RedR Australia was approached to design a security awareness participatory workshop to prepare the medical team for an assignment in India.

palestine Occupied Palestinian territory - Dinesh Jayasuriya worked with UNICEF to establish systems, procedures and a database to improve the collection, management and reporting of crucial data. Dinesh reflected “the

Dookie Provision of clean water in disaster response requires familiarity with pumps and standard equipment used in the field. Participants on

the Water, Sanitation and Hygiene (WASH) course are also introduced to public and environmental health engineering and WASH co-ordination. somalia Somalia - Robert Crigan measuring prospective construction sites in Somalia for the World Food Programme. WFP is looking to develop a northern corridor for delivery and distribution of aid to supplement its operations in the south. Robert initiated work for the construction of a new warehouse and an upgrade of the port - major infrastructure projects to assist WFPâ&#x20AC;&#x2122;s essential and life-giving operations.

summer 11 National Outlook

Excellence in the Australian Consulting Firms was on display at the 2010 Consult Australia Annual Awards in Melbourne, Victoria on Friday the 3rd of December 2010. Over 400 representatives from Australia’s top Consulting Firms gathered to receive recognition for their outstanding work in the built and natural environment. The most prestigious award of the night Project of the Year was a tie between Arup and Parsons Brinckerhoff. The judges’ comments include: Kurilpa Bridge – Arup “This is an innovative and spectacular design very well applied. It combines economy with practicality and excellent buildability.” Jacinth Ambrosia Mineral Sands Mine – Parsons Brinckerhoff and Iluka Resources Ltd Joint Ventures “This project demonstrated true technical and organisational excellence in meeting client needs and community needs, while simultaneously achieving the technical, community and environmental goals in a complex environment.” Apart from the peak award, other Australia consulting firms won Gold Award of Merit in the various Project Categories. • Building (Non-Residential) - NDY Management trading as Norman Disney & Young for ANZ Headquarters • Building (Non-Residential) – Aurecon Pty Ltd for their work on Adelaide Entertainment Centre Redevelopment • Transport and Civil – Arup for their work on Kurilpa Bridge • Transport and Civil – Aurecon Pty Ltd for their work on the Sydney Harbour Bridge Infrastructure Upgrade • Water – Klohn Crippen Berger for their work the Integrated site wide water balance and water quality for mine closure • Environmental – Arup for the 39 Hunter Street, Sydney project • Community and Urban Development – AECOM and SKM as Joint Venture Partners in the ConnectWest Consortium for the Department of Transport and Main Roads for the Western Brisbane Transport Network Investigation • Specialist Services – Holmes Fire & Safety for the Sydney Town Hall Fire & Essential Services Upgrade • Specialist Services – Holmes Fire & Safety for the Victor Trumper Grandstand – Sydney Cricket Ground (SCG) • Project Management – Parsons Brinckerhoff and Iluka Resources Ltd Joint Ventures for the Jacinth-Ambrosia Joint Ventures • Aid Projects – Coffey International Development for the Nias Reconstruction Program Professor Daniel Samson was awarded the President’s Award for his works with consulting industry leaders through his management course called Strategic Leadership and Service Excellence: Driving Engineering

National Outlook summer 11

Business Success for Consult Australia. He is also a regular contributor of the Consult Australia articles on business management and marketing material for the National Outlook publication. The Education & Training Gold Award was rewarded to Sinclair Knight Merz for the Sustainability Education and Development initiative called Sustainability rEvolutions. The Future Leader Gold Award was awarded to Guillame Prudent-Richard a Senior Environmental Scientist from AECOM for his impressive track record in project accomplishments, business growth and leadership. For a complete list of the 2010 Awards winners, please visit the 2010 awards website on http://www.consultaustralia.com.au/awards/2010/ ca_category_winners.html Consult Australia would also like to give special thanks to the following: 2010 Awards Judges and Reviewers: Merv Jones (Head Judge), Grahame Campbell, Bob Gussey, Jocelyn Jackson, Dale McBean REVIEWERS: Tony Denham | Malcolm Gallasch | Rod Jeffrey Merv Jones (Head Reviewer) | John Miles | Michael Nash Clive Humphries | Wayne Costin | Geoffrey Markam | Alan Irwin Robert Barr | David Herbert SPECIAL AWARDS JUDGES Ross de la Motte, Professor Daniel Samson Dario Tomat

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summer 11 National Outlook