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Contents SPRING 2010 P8. DEVELOPING SUSTAINABLE INFRASTRUCTURE RESPONDING TO THE CHALLENGE OF SUSTAINABLE DEVELOPMENT WILL REQUIRE DEDICATED, COLLECTIVE ACTION AT MANY LEVELS - DR. NICK FLEMING (SKM)

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SUSTAINING POPULATION PRESSURES INFRASTRUCTURE PROVISION HAS LAGGED POPULATION GROWTH IN THIS COUNTRY FOR THREE DECADES. AUSTRALIAâ&#x20AC;&#x2122;S BURGEONING INFRASTRUCTURE DEFICIT HAS PUT AT RISK OUR ABILITY TO SECURE ONGOING ECONOMIC PROSPERITY AND A SUSTAINABLE FUTURE - JONATHAN CARTLEDGE

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IMPROVING COMMONWEALTH PROCUREMENT: SUPPLIER ADVOCATES THE COMMONWEALTH GOVERNMENT, AS PART OF ITS DRIVE TO IMPROVE PROCUREMENT, HAS INTRODUCED A â&#x20AC;&#x2DC;SUPPLIER ADVOCATESâ&#x20AC;&#x2122; PROGRAMME - NICOLA GRAYSON

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COLUMNS From the President

From the CEO

Sustainable City: Sustainable Future

Sustainability

Infrastructure

Practice & Procurement

Contracts & Liability

Insurance

WHS

Skills & Resources

Finance

BIM

Technology CORNER

Innovation

Road Safety

Concrete CORNER

State News

RedR

Industry News

SPRING 10 National Outlook

FROM THE PRESIDENT Paul Reed is the President of Consult Australia and WA Regional Director for consulting engineering firm, Parsons Brinckerhoff Australia

SEPTEMBER 2010 We are yet again faced with a Federal Election. These events bring with them the need for Consult Australia to closely monitor the various policy positions of the competing political parties. Our policy team is very well connected with and cognisant of the key policy areas that are most likely to impact our membership and will, wherever appropriate and possible, endeavour to influence the direction of those policies. In addition to our own efforts in this regard we also rely on our network of contacts and relationships with other business associations. It is at times such as an election period where we are able, on your behalf, to leverage these important relationships and to capitalise on the excellent work that is done in the policy space by organisations such as the Australian Chamber of Commerce and Industry (ACCI). Consult Australia is an important voice in these related Associations so our involvement is of mutual benefit to our own members as well as to their broader membership. In the next few weeks and months the challenge for our policy team will be to ensure their good work with the previous Government is carried forward into the incoming Government, no matter which side of politics gets elected. This means keeping in touch with the key policy makers as well as the bureaucrats that support them. If there is a change of Government there will be the added challenge of making new connections. Fortunately, Consult Australia has established and puts considerable effort into maintaining positive relationships with all sides of politics.

In this way we are best placed to properly represent the business interests of our member firms. Our reputation with Federal politicians and Departments is very strong primarily because we present well formulated arguments backed by real evidence drawn from your experiences. Our aim is to present positions in the context of positive outcomes for our industry and the community in general rather than as purely self-interest positions. In this regard, the time commitment by your key people in support of our policy team is of critical importance to our ability to fully and effectively represent your business interests. In particular, the support of our Roundtable Groups by our large and other member firms is vital. These groups generate the policy and procedural topics that are of concern to your businesses and give guidance to our policy team as they strive to represent those interests. It is this partnership that delivers value to your businesses and I would therefore encourage all participants to maintain these vital communication channels.

Key to our ability to deliver on and continually improve these policy efforts is adequate funding. In this regard, Consult Australia is endeavouring to increase its financial resources through both expansion of the membership but also through running events and seminars that we believe will provide value to you and your personnel. However, I would like to appeal to each member firm to support these sessions as much as possible as it is through the funding we generate here that we can reduce pressure on increasing subscriptions.

Paul Reed Consult Australia President

Equally, however, our CEO, Megan Motto and our Director of Policy, Jonathan Cartledge are always happy to be contacted by individual member firms if there are particular issues that are of concern, beyond the issues raised by the Roundtables. At a State level, Consult Australia is working hard to develop the capacity to lobby effectively with State Governments in respect of issues of local importance. While this has been a feature of the efforts of our Divisional Committees, we believe there is further work to be done to increase the level of support for those Committees to ensure your best interests are being fully represented.

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

Mixed Sources Product group from well managed forests and recycled wood or fiber www.fsc.org Cert no. XXX-XXX-XXXX ÂŠ 1996 Forest Stewardship Council Printed CO2e neutral

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.

National Outlook SPRING 10

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. President Paul Reed Chief Executive Megan Motto National Operations Manager Julia Lemercier Director of Policy Nicola Grayson Director of Policy Jonathan Cartledge Policy Adviser Jonathan Russell Business Relationship Manager Benjamin Jung Events Manager Nicole Pusic Designer Voltaire Corpuz Education & Training Coordinator Daniel Condon Finance & Membership Coordinator 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 ÂŠ 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.

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FROM THE CEO Megan Motto is the Chief Executive of Consult Australia

As I write my column this month we have just seen for the first time the makeup of the new Gillard Ministry. Whilst some portfolios have remained with familiar faces, many relationships will need to be forged or strengthened with new Ministers, and also with the many new key stakeholders including the independents (on both sides) and the Greens. The role of Consult Australia as a lobbying organisation will be even more significant (and busy) over the next term of government, and it will be imperative that our evidenced based policy work continue to be robust and grounded from a base of community benefit and protection. With these values in mind, we will be launching later this month some significant thought leadership work on Infrastructure funding. In a similar vein to Sydney Towards Tomorrow, Consult Australia has brought together the substantial knowledge and expertise of our members to create a thought provoking contribution to an important area of public policy. The strength of this work comes from the fact that it is directly developed by the members (as opposed to commissioned through external consultants), and this means that it is peer reviewed by the best in the industry. For this reason, Consult Australia can stand very proud behind this work, and I encourage all members to keep an eye out for it over the coming weeks. In addition to our fabulous work in Australia, Consult Australia members including President Paul Reed and Immediate Past President Dennis Sheehan (who is also the Chair of ASPAC, the Asia-Pacific Regional group of FIDIC, the International Federation of Consulting Engineering Companies) are currently representing us at the FIDIC International Conference in New Delhi, India. Paul and I also recently spent a lovely few days in New Plymouth, NZ at the ACENZ (our NZ sister organisation)’s conference and Awards dinner. These events not only give Consult

Paul Reed and Megan Motto at the ACENZ at Plymouth, New Zealand.

Australia and our members to share best practice with our international counterparts, but also to showcase the strength of both the industry and the Association here in Australia. Speaking of showcasing the best that Australian consultants have to offer, I am pleased to say that our 2010 Awards For Excellence (to be held in Melbourne on Friday 3 December) is shaping up to be a fabulous event yet again. This year we will be celebrating record entries of outstanding calibre, and the celebrations will be accompanied by great food, entertainment and, of course, excellent networking. Tickets are selling fast, and given that last year’s Awards was a sell out, I encourage all those interested in attending to get in quickly so as not to miss out this year. See the website for more details and to buy tickets. In staffing news, our Director of Policy, Nicola Grayson has sadly left us recently to take on an exciting new role with Lion Nathan as Government Affairs Manager. I would like to thank Nicola for the amazing contribution she has made to Consult Australia over the last 6 years and wish her all the very best for her new role. I am very happy to announce that Jonathan Cartledge has stepped up into the role of Director of Policy. We are very lucky to have someone of his experience stepping

SPEAKING OF SHOWCASING THE BEST THAT AUSTRALIAN CONSULTANTS HAVE TO OFFER, I AM PLEASED TO SAY THAT OUR 2010 AWARDS FOR EXCELLENCE (TO BE HELD IN MELBOURNE ON FRIDAY 3 DECEMBER) IS SHAPING UP TO BE A FABULOUS EVENT YET AGAIN.

National Outlook SPRING 10

into this important role and he will be out and about in the coming months to meet many of you. On a final note, I will be taking maternity leave from 15 October (pending no early arrivals!! - but I’m told that one cannot always completely control and plan these things!) and coming back in a full time capacity on 28 February 2011. Whilst I am away, Julia Lemercier and Jonathan will share the role of Acting CEO on an as needs basis, so for any queries regarding operations or governance, please talk to Julia and anything for related to Policy, please talk to Jonathan.

Megan an Motto Chieff Executive

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SUSTAINABLE CITIES: SUSTAINABLE FUTURE

DEVELOPING SUSTAINABLE INFRASTRUCTURE RESPONDING TO THE CHALLENGE OF SUSTAINABLE DEVELOPMENT WILL REQUIRE DEDICATED, COLLECTIVE ACTION AT MANY LEVELS. Making our cities more sustainable is an important component of that response. Cities are the primary source of global consumption that is rapidly exhausting the Earth’s natural capital.

Failure to recognise the complex emerging mega-trends that will shape our cities threatens to undermine the robustness of public and private investment and is a significant planning risk.

As the number and scale of cities grows to accommodate (a predicted) 60% of the global population by 2030, this situation has the prospect of only getting worse.

Consequently there is real potential to invest precious public funds in infrastructure that will have limited future adaptability, usefulness and hence sustainability. Conversely, successfully navigating the landscape of emerging trends is central to ‘cracking the code’ of sustainable urban development.

Clearly, we must begin to substantially transform our cities, responding to immediate challenges like drought, while also achieving major improvements in sustainability. As ‘hotspots’ of consumption, production and waste generation, cities possess an unparalleled potential to increase the energy efficiency and sustainability of society as a whole. While the principles of sustainable cities have often been articulated either in their form, function or governance, less emphasis to date has examined how to overcome the basic barriers to realising sustainable outcomes.

CLEARLY, WE MUST BEGIN TO SUBSTANTIALLY TRANSFORM OUR CITIES, RESPONDING TO IMMEDIATE CHALLENGES LIKE DROUGHT, WHILE ALSO ACHIEVING MAJOR IMPROVEMENTS IN SUSTAINABILITY.

CITIES FACE COMPLEX CHALLENGES Developed cities around the world face a similar set of challenges. Not only are the basic needs of housing, transport, water supply, sanitation and energy under strain, but demands for effective communication make the supply of broadband services (for example) an important part of infrastructure provision. And while climate change has emerged as a major threat to society, it is important to recognise that it is still only one of a spectrum of significant and inter-related sustainability issues.

National Outlook SPRING 10

CAN CITIES BE SUSTAINABLE? Cities can certainly be much more sustainable than their current state. Ultimately the design, function and sustainability of cities are a function of aspiration, imagination and choice, which is why sustainability is more a socio-political than environmental issue. We will get what we choose as a society, whether through passive inaction or proactive design. Just as city planners must think systemically about the issues and trends that are faced by cities, so too must they recognise the systemic nature of cities. Cities are organisms that respond (dynamically and sometimes unpredictably) to external stimuli over which there is little direct control. It is not only governments that shape cities but the industries, businesses and citizens that inhabit them through an ongoing interplay of choices, actions and investments. Yet city planners and government agencies generally assume the role of ‘managers’ seeking to control and optimise the operation of the city features and functions over which they have authority. Indeed, planners and engineers have traditionally based the design and operation of cities on the (often unstated and unrecognised) assumption that they can be planned and operated according to the rules of mechanics and hierarchy. Quite simply, these assumptions are false. The problem is that accepting this reality presents a major challenge to the status quo. The question is “what’s the alternative?” The alternative is to recognise and deal with cities as dynamic systems, where the objective is to sustain the human and ecological systems, and the physical, financial, ecological and human assets (or capital) they contain.

ULTIMATELY THE DESIGN, FUNCTION AND SUSTAINABILITY OF CITIES ARE A FUNCTION OF ASPIRATION, IMAGINATION AND CHOICE, WHICH IS WHY SUSTAINABILITY IS MORE A SOCIO-POLITICAL THAN ENVIRONMENTAL ISSUE. WE WILL GET WHAT WE CHOOSE AS A SOCIETY, WHETHER THROUGH PASSIVE INACTION OR PROACTIVE DESIGN.

But here’s the crunch – how do you shape and effectively manage cities as dynamic organisms that foster sustainability? THE WAY FORWARD The answer lies in maintaining the attributes of the social, economic and environmental systems that sustain cities’ health and continuity, and thus the capacity of these systems to provide services and resources into the future. Some people may reasonably question “Aren’t we already doing enough to sustain our cities by securing water supplies and reducing the carbon footprint of our energy use?” Certainly these are useful and important steps, but hardly sufficient. There are many important social and economic reasons to act, including: • Supporting the changing needs of a city’s citizens (such as an ageing population and one requiring global connectivity).

SUSTAINABLE CITIES: SUSTAINABLE FUTURE • Dramatically reducing resource use per capita while improving people’s quality of life. • Meeting growing demands for investment in public infrastructure and services when the revenue (tax) base is declining. • Improving the health outcomes available through good urban design. • Ensuring cities are economically productive and competitively attractive to business and to the financial and human capital they require. • Developing transferable (exportable) knowledge to assist developing countries that lack effective governance and skills. There are many compelling reasons why business and the community should be holding governments to account for their role in shaping and investing in the sustainability of their city.

Locally and globally, cities continue to be developed in ways that are unsustainable. Only a handful of cities exist (or are in planning) that could potentially carry the tag of ‘sustainable’, such as Curitiba in Brazil, Dongtan in China, and Masdar in the United Arab Emirates. It’s not so much that there’s a lack of plans to enhance the sustainability of cities, but a lack of political will, inspiration, funding and delivery skills. Now is the time for decisive action to deliver an improved quality of life and amenity that communities will embrace because time is the ultimate non-renewable resource.

Dr. Nick Fleming SKM Dr. Nick Fleming is Chief Sustainability Officer at SKM and has over 15 years experience in consulting and research. He has worked with SKM’s clients across many industry sectors bringing sustainability thinking into organisational strategy and project design and delivery.

Dr. Nick Fleming is Chief Sustainability Officer at SKM.

TOWARDS HEALTHIER SOCIETY WITH ACTIVE-TRAVEL CITIES WHAT IS THE LINK BETWEEN OUR RELIANCE ON CARS FOR TRANSPORT AND OUR HEALTH AND PRODUCTIVITY AS A NATION? AND WHY DO ENGINEERS, PLANNERS AND URBAN DESIGNERS CARE ABOUT THE ANSWER TO THIS QUESTION? New research from Parsons Brinckerhoff (PB) and Curtin University Sustainability Policy (CUSP) institute has shown citizens who live in active-travel cities, where their dependence on cars is reduced, are healthier and more productive at work. The results are significant. The research indicates that the design and development of active-travel cities or regions shows an increase in workplace productivity by up to 6% and substantial savings in regards to healthcare costs –adding up to close to AU$40 million over a 50-year period. For engineers, planners and urban designers the PB CUSP research adds weight to the argument for cities which facilitate walking and cycling as means of transport, encouraging citizens to complete their recommended 30 minutes of exercise per day. ‘Active-travel cities’ can be further complemented by transitoriented developments (TODs), which emphasise the well-connected proximity of services and transit to living space.

PB Director of Sustainability Darren Bilsborough explains how the research measured productivity levels in activetravel cities. “We measured workforce productivity through statistics on lower absenteeism, stress levels, reduced staff turnover due to better health and higher job satisfaction. After all productivity is not just about the number of people in the workforce, it’s also about how effective they are on the job. There’s a correlation between health and business productivity with employee health having a large effect on workplace efficiency,” says Mr Bilsborough. In their study of healthcare costs, the researchers outlined the link between the use of cars as primary transport and a number of health issues including heart disease, diabetes, depression, stroke, colon cancer, breast cancer and obesity.

“Obesity is a particular threat in Australia. We recently ranked as number 21 on a list of the most obese countries and third highest amongst English speaking nations. This has a negative impact on our health care system,” says Mr Bilsborough. “With Australia’s population predicted to increase by 60% by 2050, it is obvious we need better solutions to meet growing housing and infrastructure needs. The redevelopment of urban areas into active-travel cities could not only provide substantial health benefits and increased work productivity but also significant cost savings,” Mr Bilsborough added. The PB-CUSP research was co-authored by Roman Trubka, Professor Peter Newman and Darren Bilsborough. For a full copy visit http://www.pb.com.au/ PBAU/Insight+and+ideas/Research/

Roman Trubka, Professor Peter Newman and Darren Bilsborough PB-CUSP Research SPRING 10 National Outlook

SUSTAINABLE CITIES: SUSTAINABLE FUTURE

MEETING THE CHALLENGE FOR EVIDENCED BASED PLANNING IN DECEMBER 2009, THE COUNCIL OF AUSTRALIAN GOVERNMENTS (COAG) RELEASED ITS’ COMMUNIQUE, WHICH INCLUDED NEW REQUIREMENTS FOR CAPITAL CITIES STRATEGIC PLANNING SYSTEMS, AND AN AGREEMENT THAT ‘ALL STATES WILL HAVE IN PLACE PLANS THAT MEET A NEW NATIONAL CRITERIA’ AS A RESULT OF A REVIEW OF CRITERIA TO OCCUR DURING 2010 AND 2011. DEDICATED, COLLECTIVE ACTION AT MANY LEVELS.

Figure 1 - Embodied energy

In February 2010, the Australian Sustainable Built Environment Council released its’ Stage 1 study in response to the COAG criteria, with the stated aim of ‘Altering the shape of cities, land use and transport facilities that support cities and assist in reducing the need to transport and reduce greenhouse gas emissions.’ In June 2010, as part of the Built Environment Meets Parliament event, KPMG released the Spotlight on Australian Cities – An independent assessment of city planning systems, which is an initial attempt to report on the criteria put forward by COAG. KPMG found that the available data sets for all cities in Australia was limited to budget alignment, population planning, key worker housing affordability and congestion. It is clear that if we want our cities to perform more sustainably, and to be healthier and more desirable places to live, significant improvements in consistency of data and performance management will be required to make well informed decisions. All levels of government will need to coordinate, allowing industry to innovate in response. It has, and will continue to be a significant challenge to design plans and projects within this emerging reporting environment which step-changes the planning and engineering industries into evidenced based planning. In collaboration with Australia TradeCoast (ATC), GHD has recently undertaken a study to investigate the COAG criteria for energy reporting. Utilising technology to consider city performance across planning and infrastructure systems, this work is aimed at understanding the potential reporting formats which managers of cities and large sites will face under COAG national criteria. As a leading 10

National Outlook SPRING 10

Figure 2: Operational energy

engineering, architectural and environmental consulting company, GHD readily assembled an integrated team which harnessed the significant number of detailed discipline studies underway within its operations. The ATC Urban Energy Study demonstrated that decision makers are able to inform and consider disparate data within a single City Information Model. Established to inform early phase city design, the method provides upstream structure planning and data reports across city systems well in advance of the detail which is eventually available via discipline technical studies or models; hydrology studies, transport, traffic and pedestrian flow models, financial feasibility analysis and infrastructure cost plans. The Australia TradeCoast region is one of the largest and fastest growing trade and industry regions in Australia and only 10 kilometres from the Brisbane CBD. Covering 8000 hectares, the region hosts world-class infrastructure and unparalleled transport links, including the Port of Brisbane and Brisbane Airport. ATC is a key driver of economic growth within Queensland and South East Queensland and is the largest employment zone in the state outside of the Brisbane CBD. The region is home to more than 2000 businesses, 60,000+ employees and a variety of industries. It is forecast that more than 90,000 people will work there by 2026, with an estimated value to the Queensland economy of AUD9.4 billion per year. With approximately 2000 hectares of developable land remaining within ATC, the organisation is active in assessing multiple scenarios for future development, each

involving the fostering of different industries and land use options. Given the impact of sustainability and climate change on planning related decisions, ATC recognises the need to assess the ways in which future development will be implemented to achieve the appropriate sustainable performance. GHD’s urban energy study has provided ATC with the ability to analyse the current energy profile of the region in terms of both embodied and operational energy for buildings, their operations and transport networks. The study demonstrated key issues and deficiencies within the ATC region in terms of the relationships between wider economic and localised activities affecting energy use. Incorporating the calculation of energy use across significantly disparate data such as road construction, building envelope performance, food consumption and food miles associated with active travel, freight and logistics performance of the key industry, service and household structures within the study site, the CIM outputs provide highly legible results for the appreciation of the urban effects of planning and operations. This approach also allows for alternative planning scenarios to be tested and compared on an energy basis. Synthesised datasets offered by GHD’s city information modelling approach, CityINFO, demonstrate the level of detail and visualisation required to deliver sustainable urban planning in the 21st century.

Andrew Greig (ATC), Louisa Carter (GHD) and Colin Berriman (GHD)

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National Outlook SPRING 10

SUSTAINABLE CITIES: SUSTAINABLE FUTURE

COLLABORATION NEEDED FOR SUSTAINABLE CITIES Engineers and scientists are at the heart of our society’s continual improvement mantra. We deliver better solutions, stronger and more efficient structures, improved transportation etc. But our research is telling us that the rate of change, the rate of continual improvement must now increase. Our models are telling us business as usual won’t cut it any more. SO HOW DO WE ACHIEVE RAPID CHANGE? Our approach in the past has been focused on isolated examples of what our future might look like. We focused on a building-by-building or car-by-car approach with each step of improvement based on mitigation action. At present, best practice for improving the sustainability of our cities involves collaboration across multiple stakeholder groups tackling specific parts of the sustainability puzzle. The basic concepts behind how our cities are designed are being challenged, and a better understanding of mobility needs allows us to consider adaptation actions rather than simply mitigation. Toronto, which this year was awarded the gong of Canada’s most sustainable city, moved to a balanced mitigation/adaptation approach in 2006 when, after catastrophic failures of infrastructure due to weather, it became clear that mitigation alone would not make the city durable. Council House 2 in Melbourne, the first new office building to receive a 6-star rating from the Green Building Council of Australia in 2007, used innovative ways of reducing energy consumption such as exchanging heat with the environment to improve efficiency of HVAC. Toronto is taking this approach one step further through collaboration and building a system that allows up to 100 CBD towers to use the benefits of deep lake water cooling that can reduce electricity costs for airconditioning by up to 90%. This approach has gathered momentum and a Leadership Counsel has been established that represents over 40% of the Toronto CBD building owners and major tenants, along with government regulators. The difference in approach is the move from individual heroes to collaboration. In the future, collaboration will have to extend across areas of interest. Rob Adams articulates this in the preface to the Transforming Australian Cities report

AT PRESENT, BEST PRACTICE FOR IMPROVING THE SUSTAINABILITY OF OUR CITIES INVOLVES COLLABORATION ACROSS MULTIPLE STAKEHOLDER GROUPS TACKLING SPECIFIC PARTS OF THE SUSTAINABILITY PUZZLE. THE BASIC CONCEPTS BEHIND HOW OUR CITIES ARE DESIGNED ARE BEING CHALLENGED, AND A BETTER UNDERSTANDING OF MOBILITY NEEDS ALLOWS US TO CONSIDER ADAPTATION ACTIONS RATHER THAN SIMPLY MITIGATION.

(July 2009) when he challenges why we are not succeeding in our quest. He partly answers rs his own question by stating that as yet we do not have a collective shared vision of the future and as such we are limited to simply putting up various options. However, at the southern end of Africa, Johannesburg and Durban are breaking new ground by commissioning all-of-city studies to o understand all the dimensions of vulnerabilityy to our society over the next 50 years. These aree among the first studies that are attempting to look at greenhouse gas, health, livability etc in a combined way, as well as actively engage stakeholders including those in the vulnerablee areas asking them what their vision is for the future. So the step change for improving the sustainability of our cities is not what we do, but how we do it collaboratively. Our role as engineers, as it has been for the past 100 years, is to continue to show society what our future can be. But the difference is that we must craft our solutions to meet society’s needs and not just our clients’. We have a role to tell people about the benefits associated with what is possible and not fall into the default position of telling them what is probable. We need to sell our ideas, and selling societal al benefits can only be done in a collaborative way by involving all stakeholders.

Darren Watt Golder Associates An excerpt from a speech given by Golder Associates’ Managing Director in Australia, Darren Watt, at the 2010 Consult Australia Conference in Sydney, Australia.

SPRING 10 National Outlook

SUSTAINABLE CITIES: SUSTAINABLE FUTURE

GREEN SQUARE NORTH TOWER AWARDED 5 STAR NABERS RATING GREEN SQUARE NORTH TOWER HAS BECOME THE FIRST COMMERCIAL BUILDING IN AUSTRALIA WITH A COGENERATION PLANT TO BE AWARDED A 5 STAR NABERS ENERGY WHOLE BUILDING RATING. Floth Sustainable Building Consultants was appointed to develop environmentally sustainable designs in mechanical and electrical services, environmentally sustainable development (ESD) and energy modelling for the Fortitude Valley development. Floth project manager Ian Osborne said a number of design options were considered in the initial stages, however Floth’s cogeneration technology proved to be the most space and cost efficient option. “Floth’s has achieved a building emission rating of 129 CO2 /m2 per annum, which is the lowest emission figure for a building of its size in Australia,” Mr Osborne said. Implementing its co-generation technology, Floth eliminated the use of solar panels and the need for purchasing green power, resulting in a cost effective alternative.

Floth’s co-generation plant powering Green Square North Tower

“Currently the North Tower generates 770kW of electricity as a result of the co-generation plant. To generate the same amount of peak electricity using solar panels we would need an area three to four times the size of the building’s available roof.”

“Our primary objective was to reduce the buildings’ carbon footprint by adopting good design principles.” Floth has also incorporated the use of a central air handling plant and a low temperature variable air volume (VAV) system, to assist with minimising the CO2 emissions from the North Tower. “Our philosophy has always been that the future of building services must be cost effective and integrate sustainability with practicality,” Mr Osborne said. With 78 employees in Sydney, Brisbane and Jakarta, Floth’s engineers are fast earning reputations as experts in ESD. Floth has provided engineering and sustainability services on a number of high profile projects including Green Square, HQ, 400 George Street and King George Central in Brisbane.

Glenn Ralph Floth Managing Partner & Principal Mechanical Engineer

SPOTLIGHT ON CITIES Commissioned from KPMG for the Built Environment Meets Parliament (BEMP) alliance—Spotlight on Australia’s Capital Cities: An Independent Audit of City Planning Systems—was released at this year’s BEMP as an evaluation of the performance of Australia’s capital cities. The report measures each capital city against the performance criteria for effective city planning adopted by the Council of Australian Governments (COAG) and provides an overall score and ranking against these and other external criteria. The report notes that capital cities account for 65 per cent of GDP and 65 per cent of national job creation, yet the contribution of Australian cities to national productivity is below the OECD average. ‘Capital cities are central to continued national economic performance, and it is imperative that jurisdictions are putting in place strategic planning systems to support the future growth of Australian capital cities.’ The report notes the strong limitations created by the lack of nationally consistent data indicating 14

National Outlook SPRING 10

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.

the performance of our capital cities, and is provided as a starting point for considering a more comprehensive approach to evaluation. The principal finding of the report is the apparent gap between the aspirations we have for our cities which we are seeking to guide through our planning systems, and the implementation and achievement of the key targets and outcomes contained in those plans. While the rankings included in the Report are naturally contentious—no State would want

to be ranked last in any review of performance relative to their peers—these rankings should not distract from the urgent reforms required to improve our planning systems and build the productivity of our cities as the drivers of economic growth. The report provided a foundation for much discussion at BEMP which also helped inform the final report recommendations and BEMP’s policy agenda for the year ahead.

Jonathan Cartledge

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

SUSTAINING POPULATION PRESSURES INFRASTRUCTURE PROVISION HAS LAGGED POPULATION GROWTH IN THIS COUNTRY FOR THREE DECADES. AUSTRALIA’S BURGEONING INFRASTRUCTURE DEFICIT HAS PUT AT RISK OUR ABILITY TO SECURE ONGOING ECONOMIC PROSPERITY AND A SUSTAINABLE FUTURE. In a fact not always clearly highlighted during our recent election campaign the issue of a sustainable population should direct community focus not to questions about immigration (of which skilled engineers are a crucial component), but to the infrastructure infr required to achieve ‘sustainability’— particularly in our urban areas.

Recent public debate surrounding our population is, in part, a response to increasing congestion and declining quality of life in Australian cities that have failed to keep pace with growth.

migration continues to contribute to the strength of our economy and an infrastructure policy, especially in our cities, which ensures that we can enjoy the benefits of a more densely settled city without the problems of congestion’.

In his article ‘Migration talk fills the policy vacuum’, published in the Lowy Institute’s The Interpreter (3 August 2010), Mark Thirwell observes that ‘migration policy is now being used as a response to policy failures elsewhere. It seems that failing to deliver good infrastructure to urban-dwellers, failing to get the housing market right, and failing to deliver appropriate policies on sustainability are all to be dealt with by migration policy. In each of these cases, this is not just about an apparent inability to deliver what should be the first best policy solution. It’s also about an inability to deliver a second, or even third best policy as well.’

In the debate about what constitutes a ‘sustainable population’, we must consider more what reforms and new policy is required to support our existing and future population in the short, medium and long term, rather than be diverted by economic projections for a big, bigger or biggest Australia. These reforms will be broad, extending from social policy, through to planning and tax reform.

Increased infrastructure investment that reduces congestion and supply constraints, and increases economic capacity and productivity must be the first policy response to our urban challenges, and for politicians with more populist tendencies will have the added benefit of easing pressure on migration policy. In an election campaign speech to the National Population Summit at Casula Powerhouse (20 July 2010), Malcolm Turnbull offered some rare political insight into this issue: ‘The population question is not to be answered […] by saying “Full Up”. The real answer is to have a population strategy that ensures

Consult Australia is active in these debates, considering policy towards a sustainable Australia, but also policy development that positions Australia to maintain an economically competitive position able to seize an advantage in what is the fastest growing region of the world’s economy. Our ongoing work in new models for transport infrastructure funding is just one example of this, where we consider an integrated framework with recommendations for policy change for the next two decades encompassing initiatives incentivising private and public financing as well as tax reform and community engagement. Only with this type of ambitious reform and political leadership will we see the change required to sustain Australia in the long term.

Jonathan Cartledge

IN THE DEBATE ABOUT WHAT CONSTITUTES A ‘SUSTAINABLE POPULATION’, WE MUST CONSIDER MORE WHAT REFORMS AND NEW POLICY IS REQUIRED TO SUPPORT OUR EXISTING AND FUTURE POPULATION IN THE SHORT, MEDIUM AND LONG TERM, RATHER THAN BE DIVERTED BY ECONOMIC PROJECTIONS FOR A BIG, BIGGER OR BIGGEST AUSTRALIA.

National Outlook SPRING 10

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TRANSFORMING AUSTRALIA’S CITIES FOR ANYONE WITH EVEN A PASSING INTEREST IN URBAN PLANNING AND SUSTAINABILITY THE REPORT TRANSFORMING AUSTRALIAN CITIES FOR A MORE FINANCIALLY VIABLE AND SUSTAINABLE FUTURE FROM THE VICTORIAN GOVERNMENT AND CITY OF MELBOURNE, IS ESSENTIAL READING. Championed by Project Director, Professor Rob Adams AM at Built Environment Meets Parliament 2010, following a recent update this year, the report continues as a breakthrough in clearly conceptualising a future for our cities that makes sense in terms of sustainability, liveability and economics. ‘We are today part of a new revolution, ‘The Urban Revolution’. Cities that housed 200 million people or ten percent of the world’s population in 1900 now accommodate 3.5 billion people or fifty percent of the world’s population and will, by 2050, accommodate 6.4 billion people or over seventy percent of the world’s population. Many developing cities will have to grow at over six times their current growth rate to accommodate this population explosion. More than 80 percent of Australians already live in cities that are projected to double their size in the next 40 years.’ One of the winners of the prestigious 2009 Australian Award for Urban Design, Transforming Australian Cities conceptualises a future for Melbourne driven by high quality and sustainable low rise, high density development along existing public transport corridors— including road based public transport (following existing and future bus and tram movements), and around rail infrastructure. Moving from existing Development Assessment systems to a ‘Development Facilitation’ system the project illustrates the possibilities created by coordinated state and local planning fostering infill development that preserves existing public and industrial centres, heritage sites and parkland.

TRANSFORMING AUSTRALIAN CITIES RECOMMENDS PILOT DEVELOPMENTS ALONG EXISTING TRANSPORT CORRIDORS TO DEMONSTRATE RESULTS AND MOTIVATE FURTHER DEVELOPMENT...

National Outlook SPRING 10

‘There is with the right implementation strategies room for up to 2,400,000 new people accommodated in medium density development of between 4-8 storeys. It has also identified the potential for a further 1,400,000 people to be accommodated within existing activity centres and known redevelopment sites giving an additional metropolitan capacity of 3,800,000 people.’ The economic case for this type of development is persuasive. The immediate and long-term economic costs associated with a continued push to house a burgeoning population on reclaimed farm-land on the city fringe is unlikely to be able to be supported in the face of an ageing population. The study quotes savings of an estimated $300 million per 1000 houses built as the proposed versus if these were built on fringe developments. These savings are significant when multiplied across the projected population for Melbourne of 5 million before 2030. As noted in the Consult Australia report Sydney Towards Tomorrow, increased density reduces the cost and increases the efficiency of most forms of infrastructure networks, including water, waste, telecommunications, electricity and gas and transport. However, planning for increased density must also account for lifestyle choices that often do not extend to less sustainable high rise developments, which while presenting a ‘quick-fix’ for governments, fail to account for adverse community and social implications. Lower lifestyle-friendly densities are proposed, preserving urban villages and local amenities: the additional savings of such an approach are extensive once less easily quantified ecological, health and social benefits are accounted for. With the reality of Melbourne at 5 million only 20 years hence, the study emphasises ‘it is time to considerably speed up the process.’ But what of the existing suburban sprawl, increasingly characterised as unsustainable and symptomatic of an auto-addiction soon to be tested in the absence of new technologies? Existing low density suburbia, an integral part of the Australian psyche, is described as

the new ‘green wedges’ of our future cities, working alongside the redeveloped urban corridors. Urban areas must be transformed to support the functioning of the city— reconsidered as ‘areas of stability’—through the collection and purification of storm water, generation of renewable energy, and increasing productivity of back yards. The success of this approach lies in its implementation, and real-world demonstration of its benefits and positive impact. Transforming Australian Cities recommends pilot developments along existing transport corridors to demonstrate results and motivate further development. The study advocates a paradigm shift in the visualisation of Australian cities and infrastructure. ‘If our cities are to double their populations over the next 40 years it is not credible to expect a doubling in our current infrastructure. For example, a doubling of our existing road infrastructure would only lengthen travel times, increase emissions and build in social isolation. The only credible strategy is to make our cities more compact and achieve greater efficiencies out of our existing infrastructure.’ Having now been the subject of considerable discussion, recognition and awards, the time has come to turn this study into action, and to more broadly consider the implications of this approach for other Australian cities. ‘This is a once in a generation opportunity to transform our cities while preserving their intrinsic qualities that should not be missed.’ Transforming ansforming Australian Cities is available from http://www.melbourne.vic.gov.au. gov.au.

Jonathan Cartledge e

SUSTAINABILITY

DISCLOSING ENERGY EFFICIENCY FOR COMMERCIAL BUILDINGS BUILT ENVIRONMENT MEETS PARLIAMENT (BEMP) CONTINUED THE ANNUAL CONVERSATION BETWEEN PARLIAMENTARIANS AND INDUSTRY THIS JUNE. The Government’s Building Energy Efficiency Disclosure Act commenced on 1 July 2010 with requirements to coming into effect from 1 November 2010 requiring owners and lessors of commercial office space with a net lettable area of 2,000 m2 or more, to disclose the energy efficiency rating to prospective purchasers and tenants. Implemented under the Commercial Building Disclosure (CBD) programme the initiative aims to improve the energy efficiency of Australia’s largest office buildings. Under the program, from 1 November 2010 most sellers or lessors of office space of 2,000 square metres or more will be required to obtain and disclose an up-to-date energy efficiency rating. Certain exceptions apply and there is a transition period for the first year of the program where a valid National Australian Built Environment Rating System (NABERS) Energy base or whole building rating can be disclosed. In order to meet the Act requirements, the NABERS Energy rating must • Be obtained either before or during the transition period

CERTAIN EXCEPTIONS APPLY AND THERE IS A TRANSITION PERIOD FOR THE FIRST YEAR OF THE PROGRAM WHERE A VALID NATIONAL AUSTRALIAN BUILT ENVIRONMENT RATING SYSTEM (NABERS) ENERGY BASE OR WHOLE BUILDING RATING CAN BE DISCLOSED.

to other commercial cial building types, including hotels, retail buildings, ings, schools and hospitals. Any extension to these buildings would be subject to further analysis of the impact and Consult Australia will be following these developments. More information ormation regarding di exemptions ti and the operation n of the transition period is available the ble from th he Commercial Building Disclosure re websitee www.cbd.gov.au.

Jonathan han Cart Cartledge tledge

• Be a base building or whole building rating • Be current (that is, the validity period stated on the NABERS Energy rating must not have expired) and • Be publicly accessible on the CBD program website www.cbd.gov.au. From 1 November 2011 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: • A NABERS Energy star rating for the building • An assessment of tenancy lighting in the area of the building that is being sold or leased and • General energy efficiency guidance The NABERS Energy star rating must also be included in any advertisement for the sale, lease or sublease of the office space. These requirements for office space of 2,000 square meters or more represent phase one of the Government’s approach. Phase two involves consideration of expanding disclosure SPRING 10 National Outlook

SUSTAINABILITY

WHY ENGINEERS NOW NEED TO ENGAGE IN AUSTRALIA’S CLIMATE 1 CHANGE POLICY DEBATE HOW CAN AUSTRALIA’S ENGINEERS HELP THE AUSTRALIAN PUBLIC TO BECOME BETTER INFORMED, MORE EFFECTIVE PARTICIPANTS IN THE FORMATION OF SOUND NATIONAL POLICY ON THE CLIMATE CRISIS? The perspectives of scientists and engineers are different. Scientists explore knowledge about the natural world. Engineers design and build complex systems for human sustainability, like large buildings, road systems, aircraft, rail networks, electricity grids, hydraulic systems, chemical plants etc. The core engineering syllabus still rests on a solid base of mathematics, physics and chemistry, engineering design and theory of machines. Engineers are thus well placed to help educate society away from the impossible dream of infinite economic growth and growth in living standards, knowing as we do that we inhabit a finite world of limited and use-specific resources, energy supplies and waste absorption capacities. The climate crisis signals a broader societal question – how can homo sapiens learn, before it is too late, how to live within sustainable limits as a species?

Engineers are thus well placed to understand how easy it is to upset the delicate energy balances governing the global climate system, complex as this system is. The climate security of our children and grandchildren is thus a proper business for engineers. But why are engineers seemingly reluctant to apply their intellectual tools, their professional insights and habits of mind, to thinking in a systematic and synthesised way about the climate security of human society as a whole? It seems many engineers have come to think that this is somebody else’s responsibility – that the climate crisis is above engineers’ pay grade. But there is no ‘somebody else’. Neither scientists nor economists nor politicians have higher skills than engineers in providing useful answers to how society can mitigate or, to the extent possible, adapt to disruptive climate change.

Systems engineering has useful intellectual tools to offer. Engineers build complex, mission-critical systems which are not supposed to fail; so they design these complex systems according to conservative risk management principles. The challenge is to apply this professional way of thinking about managing risk in safety-critical systems to thinking about how climate change is now stressing, to the point of increasing risk of failure, human society as a whole.

The climate crisis is at its core a problem caused by human technology - how can the human species safely transform and use the earth’s enormous energy potential?

Engineers know that the causes of failures in complex systems begin with small faults in overstressed parts. These failures then spread and compound in a series of positive feedbacks, tipping the system into other larger failures as it tries to move to a new equilibrium.

When scientists discovered in the 19th century how dirty water and untreated sewage carried cholera and typhus, engineers created the remedies. They built great urban systems for clean water supplies, and safe sewerage and stormwater removal and treatment. Now it should be engineers who advise society on how to make the transition to a safe non carbon-burning energy economy.

THE CLIMATE CRISIS SIGNALS A BROADER SOCIETAL QUESTION – HOW CAN HOMO SAPIENS LEARN, BEFORE IT IS TOO LATE, HOW TO LIVE WITHIN SUSTAINABLE LIMITS AS A SPECIES?

The silence of professional engineers as to the ‘how’ of decarbonisation is being masked by a cacophony of voices on the Internet, mostly uninformed and ideologically driven. Within all the contested ideas on Internet sites about alternative energy technologies, there is already much useful technical information2. But it is impossible to distinguish the good from the bad or irrelevant. There is no quality control, and no way of sifting sense from nonsense.

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Engineers could and should be at the forefront in designing and proposing safe and sustainable energy solutions. They should certainly not be lagging in the rear, defending the continued use of high-risk and obsolete carbon-burning systems.

Part of the reason for engineers’ professional reticence on the climate crisis is that market economics has claimed this policy ground for its own. Western society is intimidated by the large claims of market rationalist economics: that the price mechanism can solve all problems, even climate change. So Western society has looked to market economics to give all the answers. As we now know, Copenhagen’s emissions trading approach failed to win international support. What looked good in New York or London or Canberra, and satisfyingly profitable for bankers and traders, did not look so good in Beijing or Delhi or African capitals. Developing country governments distrust international trade in carbon credits – they know such trading will be at best a brake on their industrial development, at worst an encouragement to corruption of their frail governance institutions. Both Adam Smith and John Maynard Keynes understood that market economics only exists to serve human society. The market forces model of society is simply a mental construct, generalising from simple marketplace behaviour. In the end, what things cost is far less important than their physical and social impacts on the real world.

ENGINEERS ARE THUS WELL PLACED TO UNDERSTAND HOW EASY IT IS TO UPSET THE DELICATE ENERGY BALANCES GOVERNING THE GLOBAL CLIMATE SYSTEM, COMPLEX AS THIS SYSTEM IS.

The servant has become the master, and we are all the losers from this loss of wisdom. Every tonne of coal burnt produces nearly three tonnes of carbon dioxide, which is dangerously overheating our planet. Yet the effects of not costing carbon-burning’s external diseconomies, and of applying commercial discount rates to cost-benefit investment analysis, is that the renewable energy infrastructure which urgently needs to be built now, if we are to protect our grandchildren’s climate security, is still sometimes claimed to be ‘uneconomic’. In effect, economics is here advising society that our grandchildren’s lives in 50 years time are worth far less than our own lives today – a morally repugnant proposition3.

ENGINEERS COULD AND SHOULD BE AT THE FOREFRONT IN DESIGNING AND PROPOSING SAFE AND SUSTAINABLE ENERGY SOLUTIONS. THEY SHOULD CERTAINLY NOT BE LAGGING IN THE REAR, DEFENDING THE CONTINUED USE OF HIGH-RISK AND OBSOLETE CARBON-BURNING SYSTEMS.

If engineers as a profession will not research and discuss publicly the urgency and physical feasibility of a national energy decarbonisation project in Australia, who will? Questions of prudent career reticence are no doubt involved here. What can engineers safely say if they work for a coal company or coal-based electricity generator? But surely there should be professional safety in numbers. Corporate bodies like Engineers Australia could help break the silence, by mounting a well-structured major national conference where engineers could meet top-line international experts in the latest state-of the-art renewable energy and nuclear energy technologies, and could discuss in working groups the feasibility of applying and combining these technologies in Australian conditions.

Date:

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Pre dinner drinks 6:30pm

$195 Non Member Ticket

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$1575 Member Table of 10

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The limited value of a market rationalist economics perspective on inter-generational climate change policy is reviewed in Chapter 9, ‘Discounting our Kids’ Futures’, of my book ‘Crunch Time’, which draws on work in this area by Professor (Lord) Nicholas Stern for his climate change report for the British Government . See ‘Crunch Time’, pages 200-208.

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‘Brave New Climate’, a pro-nuclear energy public access website hosted by Professor Barry Brook of Adelaide University, offers useful technical debates on renewable and nuclear energy technologies.

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Tony Kevin Sydney University

This is an extract from a longer paper published on Australian Policy Online on 6 July 2010 (http://www.apo.org.au/commentary/climate-change-role-engineers) which originated as a talk given by Tony Kevin at the Engineering Deans of Australia annual conference dinner in Canberra on 8 April 2010, later published in the Australian Journal of Electrical and Electronic Engineering, Vol 7 No 2, under the title ‘The role of engineers in framing national policy responses to Australia’s climate crisis’ . The APO paper is adapted and updated from that article, and thus does not infringe AJEEE copyright of that article.

$175 Member Ticket

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Such conferences, well planned and broadly attended, would catalyse useful discussions among Australian energy engineers – knowledge which they could take back to their employer organisations. Engineering professional bodies like Engineers Australia could sponsor and plan such conferences for maximum public policy benefit. A major charitable foundation could provide funding, once a good planning vision was in place.

The Consult Australia 2010 Awards for Excellence will be held on:

For more information please contact Nicole Pusic, Events Manager on Ph: (02) 9922 4711 or via email on nicole@ consultastralia.com.au

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

BUILT ENVIRONMENT MEETS PARLIAMENT BUILT ENVIRONMENT MEETS PARLIAMENT (BEMP) CONTINUED THE ANNUAL CONVERSATION BETWEEN PARLIAMENTARIANS AND INDUSTRY THIS JUNE. program brought the Commonwealth back into city policy two decades ago. Mr Howe observed the problems arising from more recent lack of certainty regarding the Commonwealth Government’s involvement in cities, and the lack of good quality data reporting city performance. The Australian Government has since announced that Mr Howe will Chair the Expert Panel for the review of capital city strategy planning systems supporting the work of the COAG Reform Council. Consult Australia is a BEMP partner organisation alongside the Australian Institute of Architects, Planning Institute Australia, Property Council of Australia, and the Green Building Council Australia. Showcasing the strengthening relationship between Australian communities and their built environment, BEMP is fast becoming compulsory for those serious in advancing built environment issues through Parliament. Opened by The Hon. Lindsay Tanner, Minister for Finance and Deregulation, the 2010 Summit saw representation from across Parliament with presentations from Penny Wong, Minister for Climate Change; Tony Burke, Minister for Population; and Richard Marles, Parliamentary Secretary for Innovation and Industry. The challenges facing our capital cities focused participants on issues associated with infrastructure provision, community engagement, governance, sustainability, design, demographic change, and changing patterns of work and household formation.

A stronger role for the Federal Government in helping to cajole and channel more productive capital cities was widely agreed. Many participants called for the creation of a Ministerial portfolio for Cities, and a strengthened role for the planning portfolio within governments. At the same time it was considered vital to remove the politics from planning, to build bipartisan support and independence in authorities governing urban development. At a local level new models for effective community consultation and engagement were seen as essential to manage the inevitable obstacles created by NIMBY (Not In My Back-Yard) activism. Lindsay Tanner noted that while we are not currently over-populated—nor likely to become overpopulated—we are just badly organised. The Hon. Brian Howe AO, Deputy Prime Minister to Paul Keating from 1991-95, brought considerable expertise and passion to the debate as a pioneer of urban development who, through the Building Better Cities

THE CHALLENGES FACING OUR CAPITAL CITIES FOCUSED PARTICIPANTS ON ISSUES ASSOCIATED WITH INFRASTRUCTURE PROVISION, COMMUNITY ENGAGEMENT, GOVERNANCE, SUSTAINABILITY, DESIGN, DEMOGRAPHIC CHANGE, AND CHANGING PATTERNS OF WORK AND HOUSEHOLD FORMATION.

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As always BEMP saw lots of new ideas and actions to take forward: agreement that there was a need to more regularly measure the performance of our cities through more comprehensive and real-world data collection; a strong demand for accountable and empowered metropolitan development authorities in our capital cities; a new federal government programme for urban development; and a more effective model for community engagement and consultation were identified as essential to effect change in the longer-term. Consult Australia will work alongside our BEMP partners as we consider these and other actions arising g from the Summit in the year ahead. head.

Jonathan an Cartledge

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

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Level 6, 50 Clarence Street, Sydney NSW 2000 Phone: 02 8252 6718 Fax: 02 8252 6719 Email: lawyer@belegal.com.au Website: www.belegal.com.au

PPP’S: PLANNING FOR ACTION IN RECENT YEARS IN AUSTRALIA WE HAVE SWUNG BETWEEN THE HIGHS AND THE LOWS OF WHAT PUBLIC PRIVATE PARTNERSHIPS (PPPS) ARE ABLE TO OFFER AS A SECURE APPROACH TO FUNDING MAJOR INFRASTRUCTURE PROJECTS. From the Lane Cove Tunnel and Cross City Tunnel in NSW to the more successful Airport Link in Queensland and Desalination Plant in Victoria, both the pitfalls and the advantages of various PPP models have been evident. As a consequence of this varied experience there have been many recent publications considering the merits of PPPs: What can be done to learn from the mistakes and successes of the past, and how we can improve the resilience of PPPs and increase their contribution to infrastructure funding in the future. Infrastructure Partnerships Australia considered the issue in their April 2010 report The Role of Superannuation in Building Australia’s Future. The report noted that: ‘Despite the increased role for the private sector in contributing to infrastructure development over the past two decades, the infrastructure deficit continues to grow. Governments must recognise that more must be done to better harness the potential for private sector investment. Government balance sheets are already constrained; therefore in order to meet the substantial funding gap, approximately $20 billion per annum, government and industry will need to consider more innovative methods for engaging private capital or else risk new or growing infrastructure bottlenecks.’ In March of this year the Property Council of Australia considered new approaches to PPPs alongside a range of infrastructure financing methods in their review Financing Public Infrastructure in Queensland. Recommending initiatives to increase the attractiveness of PPPs to the private sector, the report also recommends alternative financing methods and matching financing methods to individual projects inviting initial financing proposals from the private sector. The report considers Growth Area Bonds, Specific Purpose Securitised Borrowing, Certificates of Participation, Value Capture Levies, Specific Purpose Levies and Business Improvement Districts: noting that these methods—in use around the world—could all be applied in Queensland with appropriate legislative change. ‘With the exception of business improvement districts, all alternative

National Outlook SPRING 10

financing methods have direct application to a large number of projects contained in the South East Queensland Infrastructure Plan and Program.’ These recommendations are not isolated to Queensland, but are relevant to governments across Australia. Continuing the discussion at a National level, in June the Australian Government through Infrastructure Australia released the report commissioned from KPMG: PPP Procurement Review of Barriers to Competition and Efficiency in the Procurement of PPP Projects. Focusing on the viability of PPPs in particular, KPMG found that bid costs for PPP contracts are significant – often running into tens of millions of dollars. However, PPP contracts are complex transactions and, particularly in Australia, the projects are often very large – usually larger than in comparable overseas countries. Bid costs in Australia are, on average, around 25-45% higher than in Canada for similarly sized projects, but significantly lower than in the United Kingdom – the two most comparable countries. KPMG also found that the time to procure a PPP contract in Australia is 17 months on average, compared with 16 months in Canada and 34 months in the UK. KPMG found that the biggest barrier to new entrants to the PPP market is the relatively small number of PPP projects in Australia in comparison with Canada and the UK. This situation can deter new entrants from establishing the capability to go head to head with the existing highly competitive field of bidders.

Since the release of this report, the Australian, State and Territory Governments through a National PPP Working Group are developing a plan of action to respond to the findings and recommendations. Consult Australia follows these developments with interest. While we support any initiatives to encourage the development of effective PPPs in Australia, ultimately even when PPPs achieve a higher level of infrastructure funding, there will still be a massive infrastructure deficit constraining productivity and in desperate need of finance. PPPs must be encouraged, but are not a silver bullet for infrastructure funding. As indicated, what is required is a comprehensive integrated approach that includes PPPs as one element of a national framework for infrastructure funding that is implemented in parallel with initiatives seeking the better use of existing assets (transit oriented development, community education, privatisation etc.), tax reform (user charges and hypothecation of transport revenue, public finance, direct tolling), and public financing (carbon pricing, infrastructure bonds, tax increment financing). Governments must adopt an ambitious policy framework that embraces this more comprehensive range of initiatives. Only with this kind of leadership will we see a long term and sustainable solution to infrastructure funding gain traction and deliver results.

Jonathan Cartledge

SINCE THE RELEASE OF THIS REPORT, THE AUSTRALIAN, STATE AND TERRITORY GOVERNMENTS THROUGH A NATIONAL PPP WORKING GROUP ARE DEVELOPING A PLAN OF ACTION TO RESPOND TO THE FINDINGS AND RECOMMENDATIONS. CONSULT AUSTRALIA FOLLOWS THESE DEVELOPMENTS WITH INTEREST.

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PRACTICE & PROCUREMENT

IMPROVING COMMONWEALTH PROCUREMENT: SUPPLIER ADVOCATES THE COMMONWEALTH GOVERNMENT, AS PART OF ITS DRIVE TO IMPROVE PROCUREMENT, HAS INTRODUCED A ‘SUPPLIER ADVOCATES’ PROGRAMME. Supplier Advocates provide leadership to targeted industry sectors to champion Australian suppliers in the government procurement market, enhance industry competitiveness, improve tendering practices and increase the use of government programs. The Supplier Advocates initiative complements the Government’s requirement that prime contractors to large Commonwealth Government procurements will develop and implement Australian Industry Participation Plans in order to provide companies with full, fair and reasonable opportunity to compete for work. Advocates play a strategic role by building on existing industry and government initiatives, and complement programs such as the state based Industry Capability Network, the Commonwealth’s Enterprise Connect, and Austrade. They will also work closely with Industry Innovation Councils, unions, industry associations and other key stakeholders.

Supplier Advocates provide leadership in developing and implementing industry marketing and business development strategies, which could include coordinating opportunities for companies to showcase their capabilities and products to government and promoting supply chain development activities. Priority is being given to activities where the Supplier Advocate can make a positive impact with an agreed strategy that focuses on contestable government procurement opportunities and identified capabilities and capacity (whether existing or potential). To date five advocates have been appointed: RAIL SUPPLIER ADVOCATE Activities identified as part of the business development strategy for rail include: supply chain mapping; supply chain improvement activities; technology road mapping; harmonisation of technology standards in rail rolling stock procurement; forecasting of domestic demand for rolling stock; and industry capability directories and opportunity matching. For more information or enquiries regarding the Rail Supplier Advocate contact Bruce Griffiths on (02) 6213 7507 or via email railadvocate@innovation.gov.au. STEEL SUPPLIER ADVOCATE The prime focus of the Steel Advocate will be to improve opportunities for Australian steel and fabrication businesses to win major procurement contracts. The Steel Advocate’s initial activities will include meeting project developers and end-users to follow up opportunities and provide feedback to the industry and government. For more information or enquiries regarding the Steel Supplier Advocate, contact Cyril Benjamin on (02) 6213 7179 or via email steelsa@innovation.gov.au.

INFORMATION TECHNOLOGY SUPPLIER ADVOCATE The IT Supplier Advocate’s role will include championing local small-to-medium enterprises in the government IT procurement market and leading business development initiatives aimed at making the sector more competitive. For more information or enquiries regarding the IT Supplier Advocate, contact Don Easter on (02) 6276 1853 or via email ITAdvocate@innovation.gov.au. CLEAN TECHNOLOGIES SUPPLIER ADVOCATE The Cleantech Supplier Advocate will provide leadership to Australian businesses that manufacture and produce environmentallyfriendly technologies. The role will help Australian businesses capitalise on the growing demand for clean technologies and the high-wage, high-skill jobs they support. For more information or enquiries regarding the Cleantech Supplier Advocate, contact Professor Andrew Parratt on (02) 6276 1355 or via email cleantechadvocate@innovation.gov.au. WATER SUPPLIER ADVOCATE The Water Supplier Advocate will champion the water sector by finding, refining and promoting opportunities for local industry in order to maximise their involvement in water infrastructure projects and systems. For more information or enquiries regarding the Water Supplier Advocate, contact Bob Herbert on (02) 6276 1355 or via email wateradvocate@innovation.gov.au. ADVOCATES FOR OTHER SECTORS The Department is investigating the appropriateness of supplier advocates for other industry sectors, including the Built Environment.

Nicola Grayson

ADV ADVOCATES PLAY A STRATEGIC ROLE BY BUILDING ON EXISTING INDUSTRY AND GOVERNMENT INITIATIVES, EXIS AND C COMPLEMENT PROGRAMS SUCH AS THE STATE BASED INDUSTRY CAPABILITY NETWORK, THE COMMONWEALTH’S INDUS ENTERPRISE CONNECT, AND AUSTRADE. 26

National Outlook SPRING 10

CONTRACTS & LIABILITY

VICTORIAN GOVERNMENT RELEASES EXPOSURE DRAFT OF NEW PRACTITIONERS’ GUIDE TO ALLIANCE CONTRACTING The Victorian Government has released an exposure draft, inviting industry feedback, of the new Practitioners’ Guide to Alliance Contracting and Appendices. The exposure draft of the guide has been prepared to provide consistent guidance on alliance contracting to departments and agencies that develop and own infrastructure projects. It sets out current leading practices for delivering infrastructure projects using alliance contracting.

The policy framework is underpinned by the following three main principles:

The Victorian Government has also approved a policy for alliance contracting. It applies (from July 2010) to all departments and agencies planning and progressing alliance contracting and sets out the minimum requirements for alliance contracting and the guide provides benchmark practices that will ensure that owners satisfy the principles set out in the policy.

3. Efficient and effective market engagement for each project. It is the policy intent that the application of these principles should assist to further develop and retain the alliance delivery method as one of the key procurement strategies that government agencies can use for delivering select infrastructure projects.

The stated purpose of the policy is to establish the policy principles, governance and approval framework to be applied by agencies using the alliance delivery method, and to consolidate the positive outcomes of alliance contracting to ensure it is used and applied appropriately.

The current Victorian policy on alliancing may shortly be followed by policies from the other government members of the inter-jurisdiction the steering committee, with discussion under way to develop a National Alliancing Policy and Framework.

The policy identifies the key benefits of alliance contracting being that the parties are incentivised to:

The Guide and Policy is available from the Victorian Government Department of Treasury and Finance, see: http://www.dtf.vic.gov.au (project alliancing).

• Work co-operatively to complete the project within the time and budget forecasts in the business case; • Find the best solutions for the project (rather than for their own interests); and

1. Governments should ensure good public accountability and transparency, and protect the public interest. 2. Each project should achieve value for money in line with business case commitments.

Consult Australia is currently finalising it’s submission to the review. For more information contact Jonathan Cartledge at jonathan@ consultaustralia.com.au

Nicola Grayson

• Work quickly and collaboratively to resolve issues as they arise.

CLIENT INSURANCE REQUIREMENTS TROUBLING YOU? NEW PRACTICE NOTE TO PROVIDE GUIDANCE Insurance clauses in consultant contracts typically require the Consultant to take out a Professional Indemnity (PI) policy and a Public Liability (PL) policy. In addition clients may seek to impose certain conditions relating to the insurance, for example: • That the policy must note the interest of the Client, or even name the Client as a party to the insurance contract; • The sum of insurance required; and • Access to the terms of the insurance policy. Your firm’s contract of insurance is between the business and the insurance underwriter, so how far can you go to accommodate your client’s requirements? Consult Australia in consultation with Consult Australia’s PI Pathway Partners, Marsh Pty Ltd, Planned Professional Risk Services and Bovill Risk and Insurance Consultants, have developed a Practice Note to explore the implications that such requirements might have on a consultant’s relationship with their Insurer and whether or not the client’s requirements can/should be met.

This Practice Note provides guidance for your business and will provide consultants with information that can be shared with clients. Consult Australia also recommends that consultants refer their clients to the Australasian Procurement and Construction Council (APCC) Professional Indemnity Insurance Guidelines in the Building and Construction Industry. These Guidelines have been prepared by the APCC to assist Australian, State and Territory government agencies to determine the level of PI Insurance which may be appropriate to the services they require from consultants in the building and construction industry. The Guidelines can be downloaded from Consult Australia’s website (policy section) or from www.apcc.gov.au (see publications/construction).

Nicola Grayson

SPRING 10 National Outlook

CONTRACTS & LIABILITY

THE PROBLEM WITH INDEMNITIES: AUSTRALIA YOU ARE NOT ALONE A California appellate court has determined that it was a design consultant’s duty to defend its developer client against a negligence action brought by a homeowners’ association, even though there was no underlying direct claim of negligence against that consultant. The Consultant was found to be not negligent by the jury but the Court still imposed an obligation upon the Consultant to pay for the developer’s defense costs and fees under the indemnity clause. See: UDC v CH2M Hill.

A CALIFORNIA APPELLATE COURT HAS DETERMINED THAT IT WAS A DESIGN CONSULTANT’S DUTY TO DEFEND ITS DEVELOPER CLIENT AGAINST A NEGLIGENCE ACTION BROUGHT BY A HOMEOWNERS’ ASSOCIATION, EVEN THOUGH THERE WAS NO UNDERLYING DIRECT CLAIM OF NEGLIGENCE AGAINST THAT CONSULTANT.

According to Consult Australia’s sister organisation in the US (American Council of Engineering Companies), the outcome of this case does not bode well for engineering firms in California or in other states such as Florida that choose to follow that precedent. The American Institutes of Architects (Los Angeles Chapter) has since spoken out against the ruling, stating: • Design professional insurers do not cover a contractual defense obligation. Professional liability policies almost uniformly exclude coverage for liability assumed by contract not otherwise required by law. As such, when design professionals contract to “defend” their clients in the event of the claim, they will likely receive a reservation of rights letter from their insurer disclaiming coverage for the defense obligation. As such, design professionals are essentially “exposed” from the standpoint of insurance coverage from a demand by an owner or developer to provide an immediate defense against claims asserted by third parties. The design professional may have to pay out of pocket for the defense against such claims, even before there has been a determination that the design professional was negligent. Such defense fees and costs can easily eclipse the value of the claim and wreak financial havoc on the design firm. • Design professionals typically charge modest fees and enjoy modest profits as compared to other participants in the construction industry. Consequently, in terms of the overall budget

National Outlook SPRING 10

for the development of a project, owners and developers are able to secure design services which constitute a relatively small line item in the budget. By forcing design professionals to pay for their clients’ defense costs, without even a finding of negligence, design professionals have unwittingly taken on risk far in excess of any fees (much less profits) they ever could hope to garner from a given project. Thus, the balance of risk and reward is upset and cannot be restored in the short run. An indemnity is an agreement to assume someone else’s liability in the event of a loss. It is a means of shifting risk from one party to another. When a design professional indemnifies a client, he or she is agreeing to assume some of the client’s potential or actual legal liabilities and thereby to act as an insurer, of sorts, for that client. Indemnities which are broadly drafted may amount to contractual assumptions of liability in excess of that which would apply at common law. As such, these types of clauses may give rise to claims for which consultants may have no cover under their insurance policy – whether on one side of the world or the other.

Nicola Grayson

CONTRACTS & LIABILITY

CONSULT AUSTRALIA SECURES RETENTION OF FITNESS FOR PURPOSE EXEMPTION IN THE TRADE PRACTICES ACT CONSULT AUSTRALIA IS DELIGHTED TO ANNOUNCE THAT THE TRADE PRACTICE ACT 1974 CONSUMER FITNESS FOR PURPOSE EXEMPTION FOR ENGINEERS AND ARCHITECTS IS TO BE RETAINED. Consult Australia is delighted to announce that the Trade Practice Act 1974 consumer fitness for purpose exemption for engineers and architects is to be retained.

CONSULT AUSTRALIA IS DELIGHTED TO ANNOUNCE THAT THE TRADE PRACTICE ACT 1974 CONSUMER FITNESS FOR PURPOSE EXEMPTION FOR ENGINEERS AND ARCHITECTS IS TO BE RETAINED.

As you may know the Government’s Trade Practices Act (Australian Consumer Law) Bill (No. 2) 2010 removed the exemption for engineers and architects to provide a fitness for purpose warranty in all work done for consumers. Consult Australia was able to secure the support of the Coalition to reintroduce the exemption into the Bill during its passage through Parliament. This has proven unnecessary as the Coalition has successfully negotiated with the Government on our behalf and the Government’s Minister for Consumer Affairs has agreed to republished the Bill to include the exemption. The Minister agreed to do this on the understanding that the exemption should be the subject of a review in three years time. Consult Australia has written letters of thanks to the Coalition Shadow Consumer Affairs Minister and Senators Bushby and Eggleston

for their support in this matter. Consult Australia has also met with the Chief of Staff to the Minister for Consumer Affairs to thank the Minister’s office for reaching an agreement on this issue. Consult Australia has since received a letter from the Minister expressing his appreciation for the constructive approach that Consult Australia took to the debate surrounding the exemption.

Nicola Grayson

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Visit our website to order online www.consultaustralia.com.au

INSURANCE

BROKERS REPORT MODEST PREMIUM INCREASES DOMESTIC INSURANCE POLICIES ARE THE ONLY LINES TO SHOW SIGNIFICANT PREMIUM INCREASES IN THE FIRST HALF OF 2010, ACCORDING TO THE LATEST SURVEY BY THE NATIONAL INSURANCE BROKERS ASSOCIATION (NIBA). The survey of members, completed after the June 30 2010 renewals period, found that while the majority of brokers reported increases of 10-30% for domestic policies, which include home and car insurance, there were more modest increases of less than 10% for most commercial lines of insurance.

“These increases were expected following the significant losses underwriters have experienced, including claims totalling more than $1 billion for each of the Victorian bushfires in February 2009, and the severe storms in Melbourne and Perth in March this year, where suburban homes and cars bore the brunt of the damage.”

NIBA represents 500 insurance broking firms and more than 2600 intermediaries, who handle almost 90% of the commercial insurance transacted in Australia, including a significant proportion of small and the medium enterprise business. Brokers handle around $10 billion in premiums annually and place around half of Australia’s total insurance business.

“The Australian insurance industry is gradually returning to profit following the big hit it took on investment earnings during the Global Financial Crisis. The modest increases across commercial lines indicate prudent underwriting of risks over the last 12 months and strong competition amongst underwriters,” Mr Pettersen said.

The survey found that 66% of brokers reported premium increases for the majority of their clients compared to 72% last year while 26% reported no change and about 8% saw a decrease in 2010. Asked to rate the “hardness” of the market on a scale of 1 to 10, 86% rated domestic insurance between 5 and 8 and 89% rated the commercial market between 4 and 7.

Nicola Grayson Consult Australia is undertaking a survey of members to determine the current conditions in the professional indemnity insurance market. The survey provides Consult Australia with a sound basis from which to develop strategies for addressing professional indemnity insurance issues. In addition, the survey is designed to gain feedback from members on Consult Australia’s PI Insurance Pathway Service to improve its value for members. If you are a member of Consult Australia and your firm would like to participate please contact Consult Australia National Office.

The majority of respondents (57%) described the general trend as “reasonable slight increases” across the board while 11% said their clients experienced increases only for hard to place risks and a similar proportion reported insurers cutting rates to achieve market share. Most brokers reported premium increases of between 1% and 9% for Public Liability, Business Interruption, Business Pack (a combination of cover for small business and rural policyholders), Commercial Property, Commercial Motor and Product Liability. Directors’ and Officers’ Liability and Professional Indemnity continued to be flat after significant increases during the height of the Global Financial Crisis. There was some hardening of policy conditions or increases in deductibles (excesses) for a minority of renewals, mainly for domestic, landlord and farm policies. NIBA CEO, Noel Pettersen, said the bigger increases in domestic premiums reflected the series of destructive natural disasters in the last 18 months.

National Outlook SPRING 10

DIRECTORS’ AND OFFICERS’ LIABILITY AND PROFESSIONAL INDEMNITY CONTINUED TO BE FLAT AFTER SIGNIFICANT INCREASES DURING THE HEIGHT OF THE GLOBAL FINANCIAL CRISIS. THERE WAS SOME HARDENING OF POLICY CONDITIONS OR INCREASES IN DEDUCTIBLES (EXCESSES) FOR A MINORITY OF RENEWALS, MAINLY FOR DOMESTIC, LANDLORD AND FARM POLICIES.

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7+( /$7(67 3$7+:$< 7(67,021,$/ 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.

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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.

INSURANCE

SUSTAINABILITY: REALISTIC DESIGN OBLIGATIONS EIGHT YEARS ON FROM THE BEGINNING OF ABGR/NABERS RATINGS, AND SEVEN YEARS AFTER THE LAUNCH OF THE FIRST GREEN STAR RATING TOOL, THE TERMINOLOGY OF ENVIRONMENTAL PERFORMANCE HAS BECOME PART OF THE STANDARD CONSTRUCTION VOCABULARY. Meanwhile, the continual advance of technology keeps the standard for best practice permanently on the increase. A solution considered ‘state of the art’ for one project might become commonplace within a matter of months as the industry adopts successful innovations.

rely on manufacturers’ statements about the performance of their products, which may not always be achieved in practice. Consultants should use reasonable care to achieve the specified rating, to the extent within their control, but imposing any higher an obligation is unrealistic. Consultants can also protect themselves:

CONSULTANTS SHOULD USE REASONABLE CARE TO ACHIEVE THE SPECIFIED RATING, TO THE EXTENT WITHIN THEIR CONTROL, BUT IMPOSING ANY HIGHER AN OBLIGATION IS UNREALISTIC.

What has been slower to evolve is the contractual language used to describe the obligations of consultants when it comes to environmental performance. CONTRACTUAL ISSUES The construction solicitor’s staple tools of warranties and indemnities are too simplistic for the cooperative decision-making needed to achieve sustainability outcomes, and may gloss over the fact that operation of the completed building has as great an impact on performance as design. A consultant who undertakes sustainability obligations in the form of warranties or indemnities is likely to be assuming obligations that professional indemnity insurance will not fully cover. The achievement of specified environmental ratings such as NABERS or Green Star is often outside the consultant’s complete control. A minority of rating tools (such as the Green Star Office Design tool) are design based, but most (such as the NABERS tools) are based on operational measurements, so that a good design can be undermined by construction defects and unexpected use of the completed building. Consultants also

National Outlook SPRING 10

• Never commit to meeting an environmental rating such as NABERS without specifying which rating tool, and which version, will be used. Otherwise the consultant’s obligations are left open to doubt. • Some tools such as the Green Star Education tool can be applied either on a design basis, or up to two years post practical completion. Any contractual obligation to achieve a rating under that sort of tool should specify at what point or points in design or operation the tool is to be applied. • Start with a good brief setting out the operational requirements of the building. If the consultant bases the design on an agreed assumption that the building will rarely be staffed in office hours, then the consultant should not be held to blame when in fact most floors are occupied around the clock, resulting in a lower operational rating. If there is no clear client brief, then assumptions should be documented in a return brief and signed off by the client. • Keep good records of product technical information relied upon in specification, especially concerning environmental performance. This is crucial evidence to prove that the product was selected with reasonable care. • Have solicitors draft a clause for consultancy agreements which specifically acknowledges the external factors in which, despite the consultant’s best efforts, can affect the sustainability outcomes of the design. • Read environmental performance clauses in consultancy agreements very carefully. Unduly broad clauses may make the consultant responsible for environmental risks on the construction site itself, which may not be within their control.

• Recognise that re-design might be required after completion so that the specified ratings are achieved, and plan accordingly. Resolving the problem is always preferable to a legal dispute about where the fault for failing to achieve the rating lay. Disputes over failing to achieve a specified rating can be expensive. Apart from the technical challenge of establishing exactly why the building is not performing as expected, the magnitude of loss is high. Large government and commercial tenants are increasingly making it a condition of their lease that specified environmental ratings must be achieved. The building owner’s loss from failing to achieve the rating is not just the cost of rectifying the building, but may also include loss from the termination of the lease, or from any rent abatement provisions in the lease. INSURANCE ISSUES Language such as “warrant”, “ensure”, “indemnify” or “fit for purpose” should never be used to describe core obligations, because this sort of unqualified guarantee is unlikely to be covered by professional indemnity insurance. Environmental performance, being affected by operational issues and technological uncertainties that are outside the consultant’s control, is a particularly inappropriate subject for unqualified contractual obligations. The potential size of environmental performance claims is all the more reason for caution. Professional indemnity insurance covers claims arising in the course of practising a specified profession, such as mechanical engineering. Any consultant undertaking highly unusual environmental work which may fall outside the usual practice of their profession should contact their insurance broker to investigate whether special insurance arrangements need to be made.

Wendy Poulton Planned Professional Risk Services Wendy Poulton is a Risk Manager for Planned Professional Risk Services (PPRS). PPRS specialise in the placement of Professional Indemnity Insurance for construction professionals and are one of Consult Australia’s PI Pathway representatives. For further information contact PPRS on enquiries@ professionalriskservices.com.au or 1800 810 970 Planned Professional Risk Services is a trading branch of IBL Ltd. IBL Ltd is pleased to announce that it is a finalist for the Australia and New Zealand Insurance Industry Awards (ANZIIF) for small and medium broker of the year. Consult Australia congratulates IBL Ltd.

WORKPLACE HEALTH & SAFETY

TOWARDS HARMONISATION: UPDATE ON NATIONAL WORKPLACE HEALTH AND SAFETY LAW The governments of Australia continue to work towards a model Workplace Health and Safety (WHS) Law for Australia. Safe Work Australia will shortly be issuing model WHS Regulations dealing with the following specific areas: • Authorisations—registration and licences, for example, asbestos removal and high risk work;

For those jurisdictions where health and safety in the mining industry are covered by industry specific laws, a separate harmonisation process is being undertaken through the Ministerial Council on Mineral and Petroleum Resources under the National Mine Safety Framework. Model priority Codes of Practices will be drafted for specific areas including:

Safe Work Australia is on track to release the exposure draft of the model WHS Regulations and priority model Codes of Practices for public comment towards the end of 2010. This will be an opportunity for businesses and individuals to provide their comments before the implementation of the model work health and safety laws in jurisdictions by December 2011.

• Construction work; and

• Other hazards—plant, manual tasks, noise, work at heights and confined spaces; and

Consult Australia has held some initial discussions with Safe Work Australia regarding the development of a Safe Design Code of Practice. Safe Work Australia has welcomed Consult Australia’s proposal setting out a framework for what such a code could incorporate and has invited Consult Australia to hold further discussion with them once the WHS Regulations and priority codes have been released.

• Occupational diving.

• Construction hazards.

Nicola Grayson

• Workplaces—facilities, first aid, personal protective equipment, emergency plans;

• Managing work health and safety risks;

• Major hazards—chemicals, asbestos, inorganic lead, labelling and safety data sheets;

• Work environment and facilities;

• Other hazards—plant, manual tasks, noise, work at heights, remote and isolated work, confined spaces, electricity;

• Consultation; • Asbestos; • Hazardous chemicals - labelling and safety data sheets;

WORKPLACE HEALTH & SAFETY

UK COURT FINDS ARCHITECTS IN BREACH OF SAFETY IN DESIGN REQUIREMENTS AN ARCHITECT’S PRACTICE AND A CONSTRUCTION COMPANY IN THE UK HAS BEEN FINED A TOTAL OF £195,000 FOLLOWING A FATALITY ON THE SITE. Express Park Construction Company Limited (EPCC) pleaded guilty to breaching Section 3(1) of the Health and Safety at Work etc. Act 1974 for failing to safely manage subcontractors working for it. The architects, Oxford Architects Partnership involved pleaded guilty to breaching Regulations 13, and 14, of the UK Construction (Design and Management) Regulations 1994,which require designers to take safety considerations into account. EPCC was fined £75,000 and ordered to pay costs of £68,000 and Oxford Architects Partnership was fined £120,000 and ordered to pay costs of £60,000 at Bristol Crown Court. The court heard that David Cairns (64) was working for EPCC sub-contractors H&F Air Conditioning Limited, at the newlybuilt ‘Exchange’ building at Express Park in Bridgewater, Somerset. Mr. Cairns was working on the air conditioning plant, which was built on a platform accessed via a ladder at the edge of a flat roof. The roof only had a low parapet, which was not high enough to prevent Mr. Cairns falling nine metres to the ground.

where bad design is an important contributory factor to a work-place fatality. Designers must ensure that plant and equipment can be accessed safely, and that safety harnesses are only used as a last resort. HSE will not hesitate to take enforcement action against any company or individual who fails to carry out their health and safety duties, especially when that failure results in a tragedy, as in this case.” Section 3(1) of the UK Health and Safety at Work etc Act 1974 states: “It shall be the duty of every employer to conduct his undertaking in such a way as to ensure, so far is reasonably practicable, that persons not in his employment who may be affected thereby are not thereby exposed to risks to their health or safety.” Regulation 13(2) of the UK Construction (Design and Management) Regulations 1994 states:

“This is a tragic case where both the failings of the construction firm and the architects led to Mr. Cairns’ death.

a. “Every designer shall ensure that any design he prepares and which he is aware will be used for the purposes of construction work includes among the design considerations adequate regard to the need to avoid foreseeable risks to the health and safety of any person at work carrying out construction work or cleaning work in or on the structure at any time, or of any person who may be affected by the work of such a person at work.”

While it is rare for designers to be charged with breaching health and safety legislation, they must be aware they can be held responsible

b. “Every designer shall ensure that any design he prepares and which he is aware will be used for the purposes of construction work

Speaking after the hearing, UK HSE Inspector Sue Adsett, said:

EVERY DESIGNER SHALL ENSURE THAT ANY DESIGN HE PREPARES AND WHICH HE IS AWARE WILL BE USED FOR THE PURPOSES OF CONSTRUCTION WORK INCLUDES AMONG THE DESIGN CONSIDERATIONS ADEQUATE REGARD TO THE NEED TO GIVE PRIORITY TO MEASURES WHICH WILL PROTECT ALL PERSONS AT WORK WHO MAY CARRY OUT CONSTRUCTION WORK OR CLEANING WORK AT ANY TIME AND ALL PERSONS WHO MAY BE AFFECTED BY THE WORK OF SUCH PERSONS AT WORK OVER MEASURES WHICH ONLY PROTECT EACH PERSON CARRYING OUT SUCH WORK

National Outlook SPRING 10

includes among the design considerations adequate regard to the need to give priority to measures which will protect all persons at work who may carry out construction work or cleaning work at any time and all persons who may be affected by the work of such persons at work over measures which only protect each person carrying out such work.” c. “Every designer shall cooperate with the planning supervisor and with any designer who is preparing any design in connection with the same project or structure so far as is necessary to enable each of them to comply with the requirements and prohibitions placed on him in relation to the project by or under the relevant statutory provisions.” Regulation 14(a)(i) of the Construction (Design and Management) Regulations 1994 states: “The planning supervisor appointed for any project shall ensure, so far as is reasonably practicable, that the design of any structure compromised in the project includes among the design considerations adequate regard to the needs specifi ed in heads (i) p ( ) to ((iii)) of regulation g 13(2)(a)... a)...”

Nicola la Grayson

SKILLS & RESOURCES

BOLSTERING THE STUDY OF MATHEMATICS AND SCIENCE AT SENIOR SECONDARY SCHOOLS THROUGH AUSTRALIA’S PROPOSED NATIONAL CURRICULUM CONSULT AUSTRALIA HAS PUT FORWARD A SUBMISSION ON THE AUSTRALIAN GOVERNMENT’S PROPOSED NATIONAL CURRICULUM FOR SENIOR SECONDARY SCHOOLS. Consult Australia has expressed its support for the creation of a National Curriculum for all Australian students from Kindergarten to Year 12 and has focused on the proposed mathematics and science curricula because of the strong link between the engineering skills shortage in Australia and the education sector. The issues can be broadly identified as: A lack of secondary students with suitable prerequisite mathematics and science subjects who choose to enrol in tertiary engineering courses. Female students are typically less likely to study specialist mathematics and science units in the post compulsory years of secondary school, resulting in the gender breakdown of professional engineers and related professionals consisting of approximately 82% males and 18% females. There is a lack of understanding within the community (particularly school students) as to the career opportunities available to engineers and misconceptions as to the role that engineers play in society. Australian university engineering schools graduate around 6000 Australians from Bachelor of Engineering programs each year; the non-completion rate is high. The National Curriculum has the potential to address these four systemic problems by implementing the following: 1. Provide students with the core knowledge and skills they need to participate in further education and training, and as members of the community. 2. Encourage female participation in science and mathematics in the post compulsory secondary school years by ensuring that all students understand the wide range of attractive career opportunities available to them. 3. Bolster career education in schools by allowing science and mathematics teachers to provide career advice relating to their fields of teaching and ensure that each school employs a professional Careers Advisor.

4. Better preparing students for learning in the tertiary education system. In Australia it has also been argued that there has been a general trend away from the study of science and mathematics in the senior years of secondary school. In particular, it appears that there had been a decline in the proportion of students studying physics, chemistry and advanced mathematics. It is critical to Australia’s prosperity that the National Curriculum and the creation of a supporting framework provide teachers and students with the means to address the issues relating to science and mathematics education. Consult Australia’s submission puts forward the following recommendations: RECOMMENDATION 1 Increase the content relating to engineering in the biology, chemistry, physics and environmental science and all mathematics curricula (units of learning as listed on the National Curriculum Consultation Portal).

RECOMMENDATION 3 Help to increase female student participation in science in the post compulsory years by ensuring science education is experiential, experimental and solutions driven. Linking science and mathematics principles to explain how they can be used to create engineering solutions that address problems like those associated with climate change, international development, water security etc. will provide a better understanding of the pathways from learning to practice in the workforce. RECOMMENDATION 4 Bolster career education in schools. Allow science and mathematics teachers to attain the skills that let them link various science and mathematics examples to real life situations. This could include professional development for teachers. In addition ensure that each senior secondary school has a dedicated, professional careers advisor. RECOMMENDATION 5

This must include strengthening the link between the natural and built environment and the use of engineering principles through the theory of mathematics and science. This will increase students understanding of the applicability of the science and mathematics skills they are obtaining in the real world.

Students need to be better prepared for autonomous learning in the tertiary education sector. Autonomous learning could be better promoted by setting problem solving case studies, which promote the development of individual research skills. This has the potential to address non-completion rates in university courses like engineering where the course workload is high and autonomous learning is essential.

RECOMMENDATION 2

RECOMMENDATION 6

Introduce an engineering elective which will bridge the gap between theory and developing an understanding of engineering among secondary school students based on real-world, activity-based experiences.

Ensure a framework is in place to support teachers and students. The framework should address all the non-curriculum issues that are critical to learning. For example the framework should dictate appropriate class sizes, provide for adequate resources and school facilities and address all other impediments to learning.

Nicola Grayson

THERE IS A LACK OF UNDERSTANDING WITHIN THE COMMUNITY (PARTICULARLY SCHOOL STUDENTS) AS TO THE CAREER OPPORTUNITIES AVAILABLE TO ENGINEERS AND MISCONCEPTIONS AS TO THE ROLE THAT ENGINEERS PLAY IN SOCIETY.

SPRING 10 National Outlook

SKILLS & RESOURCES

ENGINEERING SKILLS CRISIS CONTINUES TO THREATEN COMPLETION OF SELECTED AUSTRALIAN INFRASTRUCTURE PROJECTS AS GOVERNMENTS ACROSS AUSTRALIA ANNOUNCE RECORD INFRASTRUCTURE SPENDING, THE CONSULTING INDUSTRY HAS WARNED THAT ENGINEERING SKILLS SHORTAGES WILL CONTINUE TO CONSTRAIN AUSTRALIA’S GROWTH AND LIMIT INNOVATION. Australia’s ability to design and deliver an estimated $400 billion in infrastructure projects over the coming decade is under threat, according to Consult Australia’s Annual Engineering Skills Survey 2010. “The survey results show that a skills shortage of engineers definitely still exists in the consulting industry,” Consult Australia CEO Megan Motto said. “Despite the downturn following the GFC, the shortage is back just as strong as ever, demonstrating that the global shortage of engineers is a systemic problem.”

WHILE THE INITIATIVES THROUGH GOVERNMENT POLICIES TO DEAL WITH SHORTAGES HAVE INCREASED THE NUMBER OF NEW FULLY FUNDED ENGINEERING PLACES IN UNIVERSITIES AND TAFES, AND DESPITE THE IMMIGRATION OF SUITABLY QUALIFIED ENGINEERS, THE SHORTAGE OF ENGINEERS REMAINS AN ACUTE PROBLEM FOR AUSTRALIA NOW AND WELL INTO THE FUTURE

Three quarters of firms reported that they are experiencing critical shortages. Importantly, industry recruitment still continues as pipeline work provides a significant amount of buoyancy to the industry. Continued recruitment can also be attributed to ambitious public sector infrastructure programs and the resulting requirement for design and construction professionals in key disciplines. The number of engineering graduates had stagnated over the last decade, contributing to the problem. The engineering discipline most affected by the skills shortages is civil engineering, according to over two thirds of firms. Environmental engineers are also in short supply according to about one third of firms. Given that climate change response, sustainability and energy efficiency are high on government priority lists, significant concern is warranted. There is concern within the industry about the continued shortages of professional and paraprofessional engineering staff in Australia, especially when governments have announced record infrastructure spending. Governments and industry need continue to work together to provide practical solutions to the skills shortages. These findings have been corroborated by a recent survey conducted by Engineers Australia, which has released a report entitled, The Engineering Profession – A statistical overview 2010.

National Outlook SPRING 10

Chief Executive of Engineers Australia, a, Peter Taylor, said, ment “While the initiatives through Government creased policies to deal with shortages have increased ering the number of new fully funded engineering espite the places in universities and TAFEs, and despite neers, the immigration of suitably qualified engineers, shortage of engineers remains an acutee problem ure.” for Australia now and well into the future. Consult Australia has both short and d long term strategies in place to address dress th thee skills crisis and continues to implement ment pr programs ograms to increase the number of home ome grown grow wn engineers by promoting engineering ineering g as a challenging and rewarding career. Skilled labour is an integral part anyy project’s art of an success and without consulting engineers ng engi neers to design and manage projects, delays cts, delay ys and cost blowouts may continue impact ue to impa ct on the success of Australia’s ambitious mb bitious infrastructure plans.

Nicola Grayson

FINANCE 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 OUTLOOK: SEPTEMBER QUARTER 2010 Consult Australia’s September Quarter provided an update on the market trends for consulting firms operating in the built and natural environment. Highlights in brief from this most recent report from Geoffrey Bills:

9 per cent to a seasonally-adjusted annual rate of $37.3 billion: 11 per cent more than a year earlier. Then, 75 per cent of work done was for the private sector. In the latest quarter, only 55 per cent was private sector work.

‘The world economy continued to expand in the June quarter: rapidly in the developing economies, more slowly but rather better than expected in most of the developed economies. Concerns about sovereign debt in Europe, continuing high unemployment in the US, and fears of a marked slowdown in China, continue to unsettle financial markets. However, leading indicators of economic activity are still growing at above-average rates, suggesting that activity in the US, in Asia and in Australia’s major trading partners, will continue to grow at or above trend rates in the six months ahead.

Forward indicators of activity strengthened in the March quarter. Work commenced in Australia in the year to March was 10 per cent more than work done; and at the end of March there was more than ten months work in the pipeline.

In Australia, the Reserve Bank (RBA) is forecasting that economic growth will accelerate from 1.3 per cent in 2008/09, to 2¼ per cent in 2009/10, to 3½ per cent in 2010/11, and 3¾ per cent in 2011/12. The RBA expects underlying inflation to be about 2¾ per cent over the next year or so, rising to around 3 per cent in 2012. If growth is as the RBA expects, the cash rate is likely to be lifted from its present 4½ per cent to about 5¼ per cent by early 2011. Those increases will slow housing and commercial building. The drivers of consulting activity declined slightly in the March quarter of 2010. Real spending on plant and equipment fell by 6 per cent but building and construction activity increased. Driven by public spending on schools, non-residential building activity increased by 9 per cent. Work on offices, factories and shops, however, continued to fall. New housing activity, which has been going nowhere for three years, increased by 2 per cent, and engineering construction steadied. Employment has been rising strongly. The number of fully-employed people has been increasing nationally, and in nearly all states, over the six months to June. NON-RESIDENTIAL BUILDING Driven by government spending on schools, recent activity for non-residential building has continued to strengthen. In the March quarter of 2010, the volume of work done increased by

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ENGINEERING CONSTRUCTION Measured in 2007/08 prices, the volume of work done in 2008/09 increased by 23 per cent to $75.4 billion. Quarterly activity peaked in the September quarter last year, at an annual rate of $82.5 billion, and declined to an annual rate of around $79 billion in the following two quarters. Forward indicators of activity remained strong in the March quarter. Thanks to the Gorgon gas project, work begun in the year to March exceeded work done by 45 per cent; and at the end of March there was 13½ months work yet to be done. With the Gorgon project starting in the December quarter, work commenced jumped to an annual rate of $247 billion, but fell back to a more normal rate of $71 billion a year in the March quarter. Work started in the year to March, at $116.8 billion, was 63 per cent greater than work started in the previous year to March.

Providing the latest marke consulting t trends for in the built firms and natura l environme nt.

In particular, he makes regular quarterly forecasts of building and construction activity in each state. In the past, he has been the Chief Economist of BHP, a senior lecturer in Business Administration at the University of Melbourne, a sharebroker undertaking a wide variety of industry and company research and a corporate strategy consultant. As Consult Australia’s economist, he prepares quarterly economic outlooks (available at www. consultaustralia.com.au), and the annual Consult Australia Outlook.

Jonathan Cartledge

The volume of work yet to be done peaked in the December quarter of 2009 at $92.1 billion and eased to $90.3 billion in the March quarter of 2010. Some 68 per cent of this workk is on mining and heavy industry, 11 per cent on roads, 10 per cent on water and sewerage, 6 per cent on bridges, railways and harbours, and 4 per cent on electricity and pipelines. We estimate that work done in 2009/10 will be 6 per cent more than work done in the previous year; and are forecasting that activityy will increase by 1 per cent in 2010/11, and by 5 per cent in 2011/12.’ Consult Australia Economist Geoffrey Bills in an n economist with long experience of analysing and d forecasting economic activity in Australia. SPRING 10 National Outlook

FINANCE

REGULATORY UNCERTAINTY DOES NOT REDUCE NEED FOR ACTION ON CARBON DESPITE THE ONGOING UNCERTAINTY SURROUNDING AN EMISSIONS TRADING SCHEME, THE NEED TO TAKE ACCOUNT OF THE RISKS AND OPPORTUNITIES ASSOCIATED WITH CLIMATE CHANGE SHOWS NO SIGN OF ABATING. In fact, the reality is quite the opposite, and this is especially true for financial institutions. The sector is in a unique position when it comes to climate change and the associated risks to business, as it lends to and invests in every other aspect of the economy. Climate change is a business issue that is not going away and already has all the hallmarks of becoming an investment megatrend across the economy. This megatrend status is emerging for a range of reasons, of which regulation is only one. Even in the absence of a price on carbon complementary climate change polices are already playing a role, most notably in regards to renewable energy and energy efficiency. These are already flowing through to financial decision making, both by the providers of funding and amongst those to whom they lend and invest. A recent report by Bloomberg/New Energy Finance commissioned by Westpac and The Climate Institute, found that Australian and global clean energy investments to 2020 will continue to grow strongly. Within Australia, the renewable Energy Target (RET) is expected to generate an additional $20 billion worth of investment by 2020. Many carbon imperatives are also commercial, particularly for those seeking to build businesses in these markets. No longer can business focus on a compliance based response, the commercial pressures are also building. Whilst credit decisioning is made more difficult by the ongoing uncertainty, together with the opportunities for financing transitional arrangements and emerging markets, it is an area on which Westpac has been focusing. Its approach to credit risk assessment has been two-fold. Firstly, has been the explicit incorporation of carbon risk into credit policy and supporting manuals. Secondly, is developing an enhanced understanding of the risks to individual sectors. This has primarily been driven via an annual sector review process that takes an in depth look at the overall health and embedded risk in major industries segments within the economy. 38

National Outlook SPRING 10

MANY CARBON IMPERATIVES ARE ALSO COMMERCIAL, PARTICULARLY FOR THOSE SEEKING TO BUILD BUSINESSES IN THESE MARKETS. NO LONGER CAN BUSINESS FOCUS ON A COMPLIANCE BASED RESPONSE, ESSURES ARE ALSO BUILDING. THE COMMERCIAL PRESSURES

Essential to this process has been a structured engagement program with clients in high risk sectors in order to betterr understand the current position as well as transitional options. Closer to home Westpac has reduced its 96 own emissions by more than 40% since 1996 n over oveer and is targeting a further 30% reduction the next five years. Through this activity thee ing business has developed an understanding es of how hard it can be, even for a services company, to achieve sustainable and ons. economically efficient emission reductions. A Carbon Deal Team has been established shed d to assist in funding transitional arrangements men nts and emerging markets. Its activities include udee carbon trading, financing new carbon-related elated business opportunities, developing energy ergy efficiency funding models and other internal ternal abatement financing requirements, price ce ris risk sk management and origination activities. It is an acknowledgement that now more than ever, business leaders have a role to o support and advocate changes that willl reduce the carbon intensity of our economy nomy and to provide solutions to help our customers stom m mers make the transition. The deal team brings together expertisee from across the bank to assess and pursue sue carbon deals but equally importantly to o embed knowledge back within the operating eratin n ng areas of the institutional bank. Ultimately the ly th h he megatrend status of climate change will require a whole of business response se requiring businesses themselves to be carbon fluent.

Allison Ewings Westpac

TECHNOLOGY - BIM

IS BIM GOOD FOR BUSINESS AND WHAT IMPLICATIONS AND CHALLENGES ARE ASSOCIATED WITH CHANGING THE WAY WE DO BUSINESS? IN THE US, THE AIA (AMERICAN INSTITUTE OF ARCHITECTS) COMMENTED THAT “ALTERNATE DELIVERY MODELS ARE ALREADY CAUSING ARCHITECTS TO PRACTICE IN MORE COLLABORATIVE WAYS WITH BUILDERS, SUBCONTRACTORS, AND FABRICATORS. THE HIGH ADOPTION RATES OF BIM IS ALSO A BELLWETHER OF TRENDS IN PROJECT DELIVERY, AS IT IS A CORE ENABLING PROCESS FOR THE ENHANCED COLLABORATION THAT IPD (INTEGRATED PROJECT DELIVERY)DEMANDS. IN ITS 2006 FIRM SURVEY, AIA REPORTED THAT ON AVERAGE 40% OF FIRMS SURVEYED WHO HAD 50 OR MORE EMPLOYEES USED BIM (BUILDING INFORMATION MODELLING). EXPLORATIONS IN IPD WILL NOT BE FAR BEHIND.”

BIM IS AN INTEGRATED PROCESS THAT VASTLY IMPROVES PROJECT UNDERSTANDING AND ALLOWS FOR PREDICTABLE OUTCOMES.

The advancement of technology continues to drive the built environment through product development, environmental impact on design procedures and innovation. The introduction of BIM worldwide has provided a new avenue in which the built environment can effectively communicate information across the many professions within the industry. BIM is an integrated process that vastly improves project understanding and allows for predictable outcomes. This visibility enables all project team members to stay coordinated, improve accuracy, reduce waste, and make informed decisions earlier in the process— helping to ensure the project’s success. IPD is encouraging and enabling the vital practice of early collaboration through BIM. IPD helps exceed increasing client demands by easing and integrating the collaborative efforts of owners, architects, engineers, construction managers, fabricators, and end operators at the earliest possible stage of any project. Driving sustainable design awareness and adoption is one of the many benefits of BIM technology. This move is not without challenges that as an industry we need to identify and overcome so that as we move towards a more integrated approach for project delivery we are equipped with knowledge and can prepare ourselves. The list of new projects around the world based on alternative delivery methods, mediated by digital design grows daily as designers, builders and owners increasingly move towards IPD. But is Australia being left behind? Are the worldwide markets adapting ‘BIM’ principles that we are not implementing here and why? What affect is this having on our projects? And if Australia has to adapt, what are the implications, challenges and costs associated with changing the way we do business? Consult Australia, in conjunction with the Australian Institute of Architects and Autodesk, have organised high profile round table

discussion groups in various States to analyse and evaluate the use of BIM and the Integrated Project Delivery applications for Australian consulting firms. These discussion forums will be critically looking at the obvious challenges, such as cost of implementation, cultural change, IP ownership and the amount of data that firms would need to deal with against improved working collaboration, earlier decision-making, better documentation, and the evaluation of alternatives for sustainable design or improvements using analysis before construction begins. With architects, engineers, constructors and owners representing their part of the cycle, the aim is to identify the challenges, successes and failures of using BIM to create integrated principles within their business and the broader industry. The key to any successful project is clear, concise understanding between architects, engineers, construction professionals, facility managers, and owners. In the US as well as in Europe, BIM has proved to break down barriers and bridge communication between extended design and construction teams, providing consistent and reliable information across the scope of a project. These Roundtables will examine the impact BIM and IPD are likely to have on practice going forward. The forums will look into where the trends are heading, when/if and how consultants have to change the way they do business to stay competitive. Consult Australia and the Australian Institute of Architects will make available and publish all relevant information about the BIM forums. Through opening communication within the built environment and understanding the impact to each of the sectors, better technology, education and information can be developed to support and encourage the industry to progress into the future.

Bejamin Jung SPRING 10 National Outlook

TECHNOLOGY CORNER

TOP RYDE PEDESTRIAN FOOTBRIDGES – TEAM COLLABORATION DEMONSTRATES A BIM SUCCESS THE TOP RYDE CITY PROJECT BRINGS TOGETHER COMMERCIAL, RETAIL, COMMUNITY, RELIGIOUS, ENTERTAINMENT AND RESIDENTIAL USES ON ONE 3.3 HECTARE SITE, AND IS LOCATED 13 KILOMETRES NORTH-WEST OF THE SYDNEY CBD. THE SITE, WHICH IS IRREGULAR IN SHAPE, IS AN “ISLAND” SITE BOUNDED BY DEVLIN, POPE, TUCKER STREETS AND BLAXLAND ROAD. The project was a redevelopment of the old Top Ryde shopping centre precinct, owned by the Beville Group and developed by Defined Developments. Bovis Lend Lease was responsible for project management, design and construction. Lend Lease design will look after the architecture and showcase its capabilities in urban design, interior architecture and lighting design. Krikis Tayler Retail had been involved in the architectural design development. When complete in late 2010, the new precinct will feature 80,000 square metres of retail space for over 280 specialty stores as well as parking for 3,055 vehicles over a 3 to 7 level basement.

The installation of the northern footbridge into place.

The provision of the two footbridges across Devlin Street further enhanced the public domain usage by connecting the western Civic precinct with the Town Core. Pedestrian accessibility to all portions of the development had then been achieved thus enhancing the free flow of movement within and without the development – therefore allowing all the precincts to be connected.

The strategy was for Arup to produce a centre line geometry in line with the architectural intent of the helical primary structure. A number of 3D software packages were utilised to address all the various aspects of the deliverable, Rhinoceros was used to generate a centre line 3D geometry which was ‘form found’ from the warped surfaces between the primary top and bottom chords.

The project’s integrated traffic solution will see two pedestrian bridges constructed across the northern and southern ends of Devlin Street, providing safer and more efficient access for pedestrians and smoother vehicular traffic flow. These works were undertaken while managing traffic movements along one of Sydney’s busiest roads. The two footbridges, 40m and 47.5m spans respectively, have a helical form and showcase an architectural and structural engineering design unlike any other pedestrian bridge in Sydney.

The wireframe geometry was then imported into Strand7 for member design and FE analysis, additionally detailed connections were extracted from the Bentley Structural model and exported via IGES format directly into Strand7 for the detailed FE analysis. This process significantly increased the speed the engineers could generate and analyse complex connections knowing the geometric arrangement was exactly as the documentation and fabrication models.

Arup provided a detailed design and responsibility service incorporating façade design and shop detailing of the Top Ryde Redevelopment north and south pedestrian bridges and associated stairs walkways and lifts. The proposal was made with the intention that it will dove tail with Arup’s existing commission for the structural design of the bridges as Arup believed there was considerable efficiency and less risk to Bovis Lend Lease by combining the structural design, façade design and shop detailing as a single service deliverable. Arup employed Seacad Steel Detailing, to produce the shop drawings, whom Arup had a previous successful collaboration on the Khalifa Stadium project in Doha, Qatar for the 2006 Asian Games. 40

Photo courtesy of Peter Suryadi of Arup

National Outlook SPRING 10

Direct analysis imports to Bentley Structural Modeller allowed integration of the engineering analysis model whilst maintaining the integrity of the BIM. This process then allowed all 2D construction documents to be produced and issued for approval by the NSW Roads and Traffic Authority (RTA). The final and most important part of the delivery process was to move the approved final geometric model into a format appropriate for steel detailing and shop drawing production. Arup produced a Tekla Structures model via the SDNF, steel detailing neutral format, exported from Bentley Structural. The model was phased into 3 zones, main helical deck span, helical ‘fishbelly’ hanging structure and the lift and stair modules. Seacad worked hand in hand with Arup’s primary frame model to ensure integrated

compliance with the design intent. The model was passed back and forth at various stages of the detailing process which helped further to ensure correct interpretation of design intent on unique connections. Using colours within the Tekla model to define members with various connection types, members with internal stiffeners and members which were required to be disconnected from adjacent members to allow forces within the structure to be dissipated helped Seacad rapidly understand these important areas where using 2D documents and sketches alone would not have explained all the structural intent and requirements. This handover process also allowed Seacad to concentrate on the detailing of the primary structure knowing the coordination of the structural, architectural and façade models had all been coordinated and approved by the various disciplines, and removed the time consuming recreation of a fabrication model from 2D document which would have been the requirement in a traditional approach. The Tekla model reviewer was essential to speed up the processes of engineering review of the connected fabrication model plus mark up issues or geometry changes related to revised architectural requirements. The overall collaborative and integrated approach allowed the entire integrity of the analytical design model to be carried through geometry creation, coordination, documentation and finally the fabrication model.

Stuart Bull BIM Coordinator & Associate at ARUP

INNOVATION

INNOVATION FOR BUSINESS SUCCESS: ACHIEVING A SYSTEMATIC INNOVATION CAPABILITY THEY MEASURE INNOVATION AND RECOGNISE IT AS IMPORTANT IN THEIR WORKFORCE, AND SOME REWARD THEIR STAFF FOR CONTRIBUTIONS TO INNOVATION. THROUGH STRONG SENIOR EXECUTIVE LEADERSHIP OF INNOVATION, STAFF ARE ENCOURAGED TO CONTRIBUTE TO INNOVATION AND THE BEHAVIOURS AND CULTURE LEAD TO A DEEP EMBEDDING OF THE INNOVATION MINDSET AND CULTURE. THIS INNOVATIVENESS IS ATTRACTIVE IN LABOUR MARKETS AND ALLOWS THESE FIRMS TO ATTRACT AND RETAIN TALENTED PEOPLE. CONSULT AUSTRALIA MEMBER FIRMS, LIKE ALL OTHERS, HAVE A LARGE OPPORTUNITY: TO BENEFIT FROM SYSTEMATISING THEIR INNOVATION ‘ENGINE’. GOING FORWARD ON INNOVATION One thing is for sure: an innovation capability will not develop on its own; it needs to be consciously formulated, resourced and driven into place. Some key questions are: • Does your firm want to succeed through innovation? • Do you have a strategy in place for innovation? • Do you have the right resources, skills, and systems in place to achieve systematic innovation? • Does your business measurement system include prioritisation of innovation measures, including inputs, innovation process intensity and innovation outputs? • Are staff recognised and rewarded for their contribution to innovations? • Do leaders talk and walk innovation, and lead innovation by example? From our study of some of Australia’s most innovative companies, here are some key principles that need to be focussed on to drive forward on systematic innovation capability: 1. There is no single or simple recipe for innovation: every firm has a different culture and opportunity set. 2. Strong, determined, energetic, dynamic leadership of the organisation seems a necessary prerequisite. 3. These firms have a particularly strong sense of customer focus. 4. Innovation involves implementing change, so change management capability and readiness for regular change are requirements. 5. Sustainable development factors, such as waste reduction, staff well-being, and environmental output improvement go hand in hand with innovation. 6. Innovation is often done well by involving partners from outside the organisation: open innovation works.

7. There is a definite payoff to being innovative: first staying in business, then growth and price premiums, process innovation for cost reduction, then differentiation and profitability. Effective innovation pays off in the long run, and for many it pays in the short run too. 8. Innovation helps firms to win in the labour market. Bright people are naturally attracted to innovative firms. 9. Innovation can be leveraged throughout the supply chain. 10 Innovation can become fully embedded in a firm’s ‘DNA’ and ‘mindset’. 11. To become systematically innovative, a firm must be at least competent at ‘quality management’. 12. Innovation can be any combination of product, service, process, and technology or business model. 13. If the innovation is driven by a small group of leaders/ executives, then the risk occurs that once they are gone, the innovation capability and priority will dissipate. 14. Innovation can be incremental (small) or radical (large), and when it is large it is usually followed by a series of incremental improvements.

is more systematic, where a problem is creatively solved so that the new knowledge that is created can be reused elsewhere, and this is usually explicitly systematised by great companies in their knowledge management system. This is essentially the approach taken by consulting firms such as GHD, Arup, and also more general consulting firms such as Deloitte and PwC. Many smaller consulting engineering firms are doing similar, and being smaller they can achieve the benefits with a less formalised approach. In conclusion, we found that in a variety of industries, there is a limit to trying to compete via cost reduction, and that even in low cost countries it is increasingly possible to manage quality and service effectively, so that leaves systematic innovation capability as the last, and the ultimate opportunity for ongoing competitive advantage!

Danny Samson University of Melbourne Danny Samson is Professor of Management at the University of Melbourne. He conducts the Strategic Leadership development program for Consult Australia, twice each year (see http://www. consultaustralia.com.au/content/default.aspx?ID=15). Funding for this project was provided by the Department of Innovation, Industry, Science and Research. Comments to d.samson@unimelb.edu.au

15. Innovation is not free. It requires investment in capability building, training and experimentation. 16. Innovation means taking risk, technical, market risk etc, and so managing risk prudently, along with costs and benefits, is a core capability Consulting engineering and related companies have very often been very innovative at one level, as the finding of innovative solutions to client briefs is to a large extent built in to how engineers think and behave, but is that really systematic innovation? Perhaps this should be considered more as ‘creative problem solving’. Innovation SPRING 10 National Outlook

ROAD SAFETY

A TIME OF CHALLENGE AND CHANGE In September 2009 the new MASH (Manual for Assessing Highway Safety Features) Standard was finally approved in the USA. MASH replaced NCHRP350, which is the test standard referred to in the Australian New Zealand Standard AS/NZS 3845:1999 for Road Safety Barrier Systems. From the 31st of December 2010, new products will no longer be able to be tested to the old standard for US government-funded projects. And as a result, by the end of the year all new roadside hardware will be developed according to the new MASH standard. What will the change mean for tension wire rope fence design? Most Australian states use the impact performance for the NCHRP350 TL3 test as the basis for their designs. Some contracts have required that for median barrier placement both the NCHRP350 TL3 and TL4 test performances be considered. Why consider both impact types? Well, because a 2,000kg mass with a height of centre-ofgravity of 700mm will impose different forces to an 8,000kg mass with a height of centre-ofgravity of 1250mm. Despite having to consider both impacts, the design is ultimately based on the TL3 test. However now consider the MASH standard requirements. The TL3 impact severity has only increased by 14% but the TL4 impact severity is increased 52% (compared to the NCHRP350 TL3 test). This difference will exercise the minds of the engineers because at the moment there is not a large cost differential between TL3 tested fences and the TL4 tested fences. In fact there is an assumption that TL3 tested fences will stop trucks.

Mass (kg)

Speed (kph)

Angle of Impact

Impact Severity (kJ)

IS compared to present TL3 standard

2000

100

137.8

100%

MASH TL3

2270

100

156.4

114%

NCHRP350 TL4

8000

132.3

96%

EN1317 TB41

10,000

126.6

92%

MASH TL4

10,000

209.3

152%

Test data NCHRP350 TL3

MASH fences may be different. There may be a large differential in the comparative cost because 209kJ acting at 1250mm height is quite an impact. So the wire rope safety fences we use today are about to change. What will a MASH fence look like? At this time there are none available in the marketplace. However the development testing is well underway. The past results may provide some guidelines. Fence Type

Brifen TL4

Test Method

NCHRP350 TL4

EN1317 TB41

Test Date

29 November 2004

15 July 2005

Fence Length for Test

275m

280m

Post Spacing

3.2m

Mass

8,050 kg

10,410 kg

Speed

79.7 kph

73.9 kph

Angle of Impact

15.8°

15.6°

Impact Severity

146.3 kJ

158.6 kJ

Deflection Result

2.2m

2.7m

The first point to note about these test results is that the fence length tested exceeds the required 600 feet (183m) minimum length to test wire rope barrier to the MASH standard. The second point to note is the age of the tests. Once the decision was announced to upgrade/ replace NCHRP350 there was no point in testing to the old standard. The MASH document had a long gestation period and was not finally approved by the 52 states in the USA until mid-2009. The next point is that if there is a desire to keep the existing fence structure (to create a new inventory of fence components) and if there is a desire to keep the MASH TL4 deflection to less than 3m for 209 kJ impacts, then the post spacing may have to reduced to 2.5m or less. Australian wire rope safety barrier specialists are currently using the mechanical work of the rope on the post to rapidly draw energy out of the system, which is what provides their current fences with low deflection. However for 209kJ impacts, more design is needed. It is not an easy solution, and as a result academics and consultants from both Europe and North America have been brought into the process So it’s a busy time for tension wire rope fences in Australia, but the end result will usher in a range of fully-tested MASH TL4 products to our roads. Providing greater safety from high-energy impacts.

Paul Hansen LB International 42

National Outlook SPRING 10

CONCRETE CORNER

SAFER – PRECAST LEADS THE WAY IT IS AN INESCAPABLE FACT THAT OUR SOCIETY IS INCREASINGLY UNWILLING TO ACCEPT DEATH OR SERIOUS INJURY IN THE WORKPLACE. Evidence of this is readily available in the adoption of industrial manslaughter laws in the Australian Capital Territory, a policy which was mirrored by the platform of at least one national party in the recent Australian Federal election. Running counter to this social imperative is the business imperative that all construction managers face, to deliver projects on time and on budget. Fortunately there is a way to meet the demands of both these imperatives - precast concrete and the range of specialist lifting, bracing and connection systems available. Construction speed does not need to come at the cost of construction safety.

The safety dividend of precast concrete is delivered through the number of potentially dangerous site operations it can reduce or eliminate, and the reduction of clutter, material storage, manual handling and waste and mess on site. A tidy site is, generally speaking, a safe site. The introduction of the SwiftLift™ lifting system has revolutionised lifting safety, and whilst individual crane lifts are typically heavier with precast construction, the ability to position an entire wall section with one lift delivers unrivalled construction efficiencies. These large lifts have been made possible through the continuous development of lifting and bracing systems of ever increasing capability and functionality by manufacturers

worldwide. Reid Construction Systems patented JAWS™ edge lift anchor system, with lifting capacities up to 10 tonnes, is a perfect example. More than just an edge lift anchor, JAWS is an integrated lifting system, with matching clutches and a range of supporting engineering information and services that ensure safety need never be compromised in pursuit of efficiency.

Simon Moore Reid Construction Systems

RAISING & RE-LEVELLING BY EXPANDING RESIN A leading edge building rectification solution available today is the method of raising and re-levelling houses by injecting expansive resins into the ground underneath. Invented in Finland three decades ago, the ‘Uretek method’ was applied and developed in Europe and the USA. Introduced to Australia in 1995, it was initially applied to industrial and public works projects (including factories, warehouses, highways and airports). Thoroughly proven in these “heavy duty” situations, it was offered to house owners. One widespread effect of the current drought has been the drying out of foundation ground with reactive clay content. Houses have sunk and walls cracked. Exemplifying this was a house at Cleveland, Brisbane, built on a concrete slab footing over highly reactive clay soil. Inspection by Uretek technicians showed extensive wall cracking, inside and out, caused by subsidence. Cracks in the plasterboard ranged up to 25mm. The floor slab had sunk as much as 44mm in places. 44

National Outlook SPRING 10

Before: Huge cracks in plasterboard.

Windows and doors had ceased to work properly. Floors had sunk away from walls, with the bottom plate of internal walls left 20mm above the floor in some rooms. The foundation ground varied in density across the site and the floor slab had not subsided evenly. By injecting expanding resins beneath the slab, it was possible to raise and re-level the 85 square metres of subsided floor slab to within a millimetre or two of its original levels throughout the house. The wall cracks came

After: Closed by Uretek re-levelling.

back to hairline widths that would disappear with re-decorating. Gaps under the skirting boards were eliminated. The few voids that had developed under the footing were also filled, and the weaker parts of the foundation ground were compacted in order to re-support the whole structure. All of which significantly reduce the possibility of future subsidence.

Tom Bailey

MEMBER SERVICES BUSINESS REPORTING Economic Reports Performance Benchmarking Salary Survey Benchmarking

EVENTS & NETWORKING

In recent times especially, Consult Australia has increased its services for members and is constantly battling on members’ behalf against regulation and legislation that has the potential to stifle business for consulting firms operating in the built and natural environment. In business, there has to be a friendly face to turn when help is needed; Consult Australia is always there for us, ready and able to help. We need Consult Australia: If there were no Consult Australia tomorrow, we would all band together to create one! Melvyn Maylin, General Manager – Australia, Opus International Consultants

Consult Australia Awards for Excellence Member Meetings University/student interaction State Annual Dinners State Branches Liability & Contracts Roundtable Skills Roundtable WH&S Roundtable Sustainability Roundtable Economics & Tax Roundtable Infrastructure Roundtable Conferences FutureNet Local CPD Seminars

GOVERNMENT LOBBYING Contracting, Liability and Risk Workplace Health and Safety Skills Shortages, Education and Migration Procurement, Project Delivery and Registration Sustainability Taxation

PARTNERSHIP Advertising Sponsorship at all levels Event/CPD Sponsorship

WORKPLACE RELATIONS Industrial Relations Advice Employment Policies and Documentation

BUSINESS DEVELOPMENT TOOLS Practice Notes Business Tips Consult Australia Contract Consult Australia Short Form Contract Consult Australia Guide to Contract Terms: Managing Unfavourable Terms WH&S Checklist Safety in Design Pocket Guide

EDUCATION & TRAINING Contract for Consultants Safety in Design Finance for Consultants Role of the Superintendent Regular Division CPD Seminars and Workshops

PROMOTING YOUR BUSINESS Consult Australia Awards for Excellence Advanced Reputation Success by Association Downloadable Logos Consult Australia Branded Contracts FIDIC Branded Contracts Graduate Guide Distributed to All Universities Member Referral Service

WEBSITE Members Only Area Member Downloads Latest News & Events Practical Advice & Assistance Online Store Events Calendar Contracts Online Download Consult Australia Member Logos

COMMUNICATIONS National Outlook Magazine Annual Report Innovate Magazine Fortnightly CE Update E-newsletter International E-newsletter HR/IR E-newsletter State Newsletters & Event Updates

FIDIC PUBLICATIONS Contracts & Agreements Guide to Practice Quality & Integrity Management Risk Management Environment & Sustainability

CONSULT AUSTRALIA PUBLICATIONS Consult Australia Risk Management Guidelines for Consultants Winning Government Business – A Guide for Consulting Firms Outlook 2010 – Annual Publication Outlook 2010 – Quarterly Report

INSURANCE BROKER SERVICE PI Pathway Panel of Brokers

VISA & IMMIGRATION ISSUES In house Department of Immigration Advisor

LEGAL ADVICE Built Environment Legal (BEL) 25% Discount

For further information or to apply for membership, please contact Consult Australia at www.consultaustralia.com.au

STATE NEWS

VIC DIVISION The Victoria and Tasmania Divisions now have a new State Manager, Kate Di Gregorio. Both Divisions would like to thank out-going State Manager, Cathryn Ellis, for her work and support during her time with Consult Australia and wish her the all the best.

We wish to thank BST Global and MTU Detroit Diesel for their continued support as sponsors.

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

This new appointment offers the opportunity for members to have their ideas heard by a fresh set of ears. Kate would love to hear from our members what they want from their association and how Consult Australia can help your business. Please contact Kate on (03) 8699 7700 or via email on kate@consultaustralia.com.au. The Victoria Division continues to develop its relationship with VicRoads. Upcoming meetings between VicRoads and members of the Victoria Division Committee are planned, and the FutureNet event recently held in July enabled FutureNet members and their mentors to engage with the Senior Executives of VicRoads in an informal setting. 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 pre-qualification requirements for drillers working for consultants. It is envisaged that the pre-qualification 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: Rob Barden (Chadwick); Judi Wright (Coffey); Simon Fitzgerald (ADIA); Ron Terpstra (Boart Longyear); Amanda Benson (Coffey); Kate Di Gregorio (Consult Australia); Patrick Endycott (Douglas Partners); Peter Brown (Golder Associates); John Hickey (Health and Safety Engineering); Rob Wright (Parsons Brinckerhoff ); Ian Fry (Strata Drilling); Steve Brazil (URS) One more FutureNet event is planned for October 2010, along with the End of Year Cocktail Function in December. Details on these events are to be confirmed so please keep an eye on the website for details. The Construction Induction Course that has been developed by Consult Australia, in conjunction with Engineers Australia and APESMA, is nationally recognised and meets the condition of the OH&S regulations 2007 for the requirement for workers to be registered. This course is specifically designed for engineers and other professionals, who enter a construction site to inspect, observe and supervise, rather than as workers engaged in construction tasks. The upcoming courses will be held on: • Wednesday, 22 September 2010 • Friday, 29 October 2010 • Wednesday, 8 December 2010 We have also recently introduced the option of running the course in-house for our members. This is a great way to have all new graduates and employees trained together in your offices. Please contact Kate for further information.

National Outlook SPRING 10

We also wish to thank those firms who have kindly sponsored individual events:

TAS DIVISION In July, GHD sponsored a meeting with the new Minister for Infrastructure, Lara Giddings. 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. Another meeting with the Government is planned and details will be provided to members once they are confirmed. We wish to thank GHD for kindly sponsoring this meeting.

An End of Year luncheon in Hobart is being planned for our members. Planning is in the early stages and once details are confirmed they will be provided to all members.

STATE NEWS

SA DIVISION SA’s No. 1 Business Bank.

The SA Division are now well into the new look Calendar of Events for 2010/11, and we also welcome BankSA as a division Platinum Sponsor. We also wish to thank the following member firms for their Silver Sponsorship of the division for the 2010/11 year - URS, AECOM, Parsons Brinckerhoff and Aurecon. The bimonthly E-Newsletter has been well received and we continue to meet with our member firms and encourage prospective members as we look to engage with and grow the SA Division. The division is taking our profession out to students as a career choice as often as possible through presentations at school careers nights and attendance at University Career Expos. Should any members be interested in presenting to a school group or have heard of a group interested in holding a presentation please contact Jan Irvine on (08) 8216 1177 or email jan@consultaustralia.com.au. MEETINGS WITH STAKEHOLDERS & INDUSTRY ASSOCIATIONS SA Division have been developing stronger ties with other associations and industry stakeholders. We have met with Engineers Australia, the Construction Industry Training Board, Skills DMC and are in contact with IPWEA and NPCAA. A meeting with the Attorney Generals Department has been scheduled regarding the Standing Committee of Attorneys General development of model Proportionate Liability Legislation. We will discuss the progress of the review on this and in particular the South Australian Government’s feedback regarding the operation of the Legislation so far and the issue of ‘contracting out’ Jan Irvine and Nicola Grayson recently met with Skills DMC to discuss the progress of the current round of government training grants and to look into further availability of grants that may be applicable for our member firms to access for employee training and upskilling. UPCOMING EVENTS Industry Breakfast – Sustainability – Using Recycled Aggregates in Road Building in South Australia, 14 September 2010, Sebel Playford Business Writing Workshop – 29 September 2010 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 July Breakfast Update saw Nicola Grayson, Director of Policy, update members on Consult Australia’s campaign for balanced contractual terms and conditions for the engagement of consultants. Topics covered included development of risk and liability management guidance for government procurers, revision of AS4122 – General Conditions of Contracts for the Engagement of Consultants

and the development of government as a “model Procurer”. Nicola gave an insight into the progress of these important projects for our industry and outlined some of the continuing challenges. As Nicola also has the responsibility for Consult Australia’s Occupational Health and Safety policy development, which is currently focused on the development of a framework for a National Safety in Design Code, this issue was also covered. The Boardroom Luncheon Series (strictly members only) continues with latest lunch guests Jim Hallion - Chief Executive, Department of Transport, Energy and Infrastucture (DTEI) and Rod Hook - Deputy Chief Executive and Executive Director, Office of Major Projects and Infrastructure SA (DTEI) meeting with SA Division members mid July. Discussions included the update on continued rollout of major projects in SA along with a number of other topics including forms of delivery, contract conditions and the revised approach by government agencies regarding risk assessment and liability capping. FUTURENET FutureNet SA recently appointed new office bearers. Consult Australia would like to thank out-going Chair Olivia Nunn – Aurecon and Vice Chair Dave Gerner – Avante Mapping Solutions for their tireless commitment to their respective roles over the past 2 years. Both Olivia and Dave continue to be a part of the committee in a supportive role. FutureNet SA are very pleased to announce Dane Noble – AECOM and Joanne Chong – Parsons Brinckerhoff as the new Chair and Vice Chair respectively. Details of all new committee members and the FutureNet SA Calendar of Events can be found on the Consult Australia FutureNet SA webpage. FUTURENET SA RECENT EVENTS The August FutureNet Breakfast - Project Super Schools – Private Public Partnership was held at the Adelaide Pavilion and approximately 90 young business professional gathered to hear our guest speakers Mark Stefanac, Technical Director/ BDM SA, AECOM Australia Pty Ltd and Stuart Warnes, Project Manager/Design Manager, Hansen Yuncken. Mark has been involved with two super schools projects from the inception together with Hansen Yuncken and managed the AECOM team from the bid, financial close, to now - and discussed the process of the bid phase and more specifically that of the ESD. Stuart, the design leader for the PPP project and a Green Star Accredited Professional discussed the PPP process overall – what it is, the benefits and the challenges, the design and construction phases of the project and the ESD initiatives within the schools. FUTURENET SA UPCOMING EVENTS October Breakfast, Wednesday 13 October 2010, on SA Health & Medical Research Institute Facility December Christmas Cocktail Event, Thursday 9th December 2010

SPRING 10 National Outlook

STATE NEWS

NSW DIVISION Further to our four gold sponsors and one platinum sponsor, the Division would like to announce Autodesk as Platinum Sponsors from September 2010. We look forward to having Autodesk on board and look forward to a successful working relationship with them. Michael Deegan, Paul Gilbertson, David Stuart-Watt and Ian Ackland recently presented at the ‘NSW Infrastructure Towards Tomorrow’ seminar which was held at the Grace Hotel, Sydney. Over 70 people attended the presentation which was very well received.

PLATINUM SPONSORS:

GOLD SPONSORS:

BRONZE SPONSORS:

NSW recently sponsored a BBQ (which was turned into Pizza and Beers!) at the UNSW. Ten member firms attended the event and there were over 200 students in attendance. The Division aims to sponsor at least two more university BBQ’s in 2010. The ACSE Annual Seminar on Timber Design was held on the 1st July. This event consisted of five 45 minute presentations from an array of speakers and the seminar was followed by a sit down dinner. Upcoming events for the remainder of 2010 include a seminar on value management/ value engineering, seminar on Safety and Design, the 2010 FutureNet Business Leaders Awards Dinner, the 2010 NSW Division AGM and a seminar on current and future electrical & lighting systems within tunnels. Consult Australia has put together an issues paper on the Roads & Traffic Authority (RTA) Professional Services Contract.

The second prize of $1000 for the most aesthetically appealing structure went to ‘2nd Chance’ from the University of Wollongong. Third prize of $500 went to the team ‘Rainbow’ from the University of New South Wales whose bridge held the most weight at 30kg. We couldn’t have asked for a better day and we sincerely thank our wonderful sponsors who made the day possible.

A sub-committee has been formed which will focus on the Sydney Towards Tomorrow report and getting as much exposure out of it as possible.

Thank you to; Our gold sponsors:

AECOM and Arup

NSW has written to the Department of Premier and Cabinet voicing concerns with PI Insurance in government contracts.

Our silver sponsors:

Taylor Thomson Whitting and Sinclair Knight Merz

Our bronze sponsors:

Pentagon Management, Northrop Roads and Traffic Authority Hughes Trueman

And our materials sponsor:

Bunnings Warehouse

NSW is currently seeking committee members for their Project Management Branch and Education & Training Committee. These committees meet on a monthly basis and discuss topical issues and develop seminars and events (as well as much more!). For further information, please contact NSW Division Office on (02) 9966 4966 2010 UNIVERSITY BRIDGE BUILDING CHALLENGE The 2010 Consult Australia University Bridge Building Challenge was a great success and we’d like to thank everybody who was involved in making this such a great event! The event was held on Friday 6th August 2010 at the Customs House Square, Circular Quay during Australian Engineering Week. Over 170 students participated in the event, challenging themselves to build the lightest bridge to hold the designated weight. We had students from six universities participate and universities involved were the University of New South Wales, University of Sydney, University of Technology Sydney, University of New England, University of Western Sydney and University of Wollongong.

The first prize of $2000 went to the team “It’s Lonely Out in Space” from the University of Sydney. Their bridge weighed in at 226g and held the required load of 3.75kg.

National Outlook SPRING 10

We’d also like to thank the Consult Australia Education and Training Committee for all their efforts, judges Joe Snell and Harry Partridge and finally, Tim Hoare, David Bryceson and Brad Martin for all their help on the day. The 2010 Consult Australia Bridge Building Challenge proved to be a very enjoyable day and we can not wait to do it all again in 2011!

STATE NEWS

ACT DIVISION ACT LOBBYING The ACT Division has been lobbying/ meeting with the following organisations: • Land Development Agency First Prize Winners of $2000 students from University of Sydney “It’s Lonely Out in Space.”

• TAMS • ACT Procurement Solutions • ACT Planning and Land Authority • WSUD They recently had a win whereby the Land Development Agency agreed to amend their technical exception clause. A meeting is currently being set up with TAMS to discuss various member concerns.

Second Prize Winners of $1000 students from University of Wollongong for the most aesthetically appealing structure.

A meeting between members and representatives from the University of Canberra, Australian National University and the Canberra Institute of Technology was held to discuss the implementation of a Civil Engineering course in Canberra as well as the format of current courses. The meeting was well attended and it was announced that a Civil Engineering course would be available in Canberra in 2011. Consult Australia will be involved in the formation of the course as well as being represented on the appropriate working groups reviewing current courses. It was agreed that meetings between Consult Australia and universities would be held on a regular basis. Roughly forty people attended a seminar on the new Security of Payments Acts (ACT). Jon Facey from Able Adjudication presented and the event was held at Federal Golf Course. Consult Australia has a representative of the Chief Ministers Technical Reference Group.

A view from above, students were given two and half hours to design and build their bridge.

ACT Procurement Solutions has agreed to organise a separate Roundtable consisting of just them and engineers. Meetings will commence in September. ACT Procurement Solutions presented on the new Security of Payments Act (ACT) at the recent committee meeting. A seminar on green buildings within the ACT is the next scheduled seminar and will be held in December. A site visit to Cotter Dam is being held on Thursday 4th November 2010. The Division is now offering sponsorship and a detailed sponsorship pack has been finalised. ACT FutureNet continues to hold regular events and their next event ‘Interpreting Personality Styles’ is being held in September. The following event will focus on whether young professionals should invest in shares or property.

Weighing and stress testing of the bridges.

SPRING 10 National Outlook

STATE NEWS

QLD DIVISION

Consult Australia members have been asked to provide feedback to TMR in order to progress this project. TMR are hoping to finalise all planning and development before the end of 2010. DEPARTMENT OF INFRASTRUCTURE AND PLANNING (DIP)

STAKEHOLDER ENGAGEMENT The Department of Transport and Main Roads (TMR) met with Consult Australia on two separate occasions since the last edition of National Outlook was released: 1. At the recent TMR/Consult Australia Senior officers meeting, Consult Australia tabled an agenda item raising concerns from members in relation to invitation documents. The main issue was in regard to short tender periods - most specifically, not giving consultants time to be able to provide appropriate and thorough responses. The requirement of the tender documents to have two company director signatures was also raised as an issue. TMR noted the examples provided had used the QGCPO Public Works’ Conditions of Offer for Goods and Services’, which is not appropriate for the engagement of engineering consultants. TMR are currently doing extensive internal work so as to link all contract conditions to one homepage, thus reducing the likelihood of inappropriate contracts or Tender documents being used. If any consultant believes they have received the incorrect documents, Ross Guppy, Deputy Chief Engineer, Pavements, Materials, Geotechnical & Standards is happy to discuss – he can be reached on (07) 3834 5471 or via email ross.r.guppy@tmr.qld.gov.au. OTHER ITEMS DISCUSSED: • The Roads Investment Program (RIP) will become the Queensland Transport and Roads Investment Program (QTRIP), with the first version due for release in late August 2010. • TMR are reconvening a working group on their General Conditions of Contract, QLD Division provided initial comments in late July and the first working group was to be scheduled for late August/early September. • Better ways for TMR to provide notice of planned tenders • Following the successful Tunnelling workshop held in May, discussions were held regarding potential future topics. 2. Principal Assured Insurance - Consult Australia met with TMR at an industry briefing in July to discuss TMR’s proposals to implement a (PAI) Principal Assured Professional Indemnity Insurance Policy which would cover all projects less than $150m project cost and less than 2 years project duration. The aim of the PAI policy is to address the existing risk transfer arrangements which TMR feels are inefficient for the consultants and TMR. It is envisaged that for projects covered by this policy, Consultants (or their sub consultants) would not be required to hold their own PI insurance. It is also envisaged that TMR would receive benefits in the form of greater innovation, cooperation between Consultants and TMR, and for all parties’ removal of the significant 3rd party costs that can be involved in any claim.

National Outlook SPRING 10

On 2nd August Consult Australia representatives attended a key stakeholder meeting with senior executives of the Department of Infrastructure and Planning. The main item on the agenda was an update from Paul Low, CEO of the new Growth Management Queensland (GMQ) which has been set up as one of the primary initiatives that came out of the Queensland Growth Summit that was held in March. GMQ is now tasked with delivering on the 47 action items from ‘Shaping Tomorrow’s Queensland: A response to the Queensland Growth Management Summit’ (a copy of this report can be found at http://growthsummit.premiers.qld.gov. au/assets/gov-response-summary.pdf). Many of these initiatives will require stakeholder consultation and Consult Australia will continue to communicate with GMQ to ensure that we and our members are involved. Local Buy A thorough review of Local Buy’s General Conditions of Contract for Engineering Consultancy services is being undertaken by QLD Division. Member feedback was sought and we thank the 16 firms who provided comments. A second meeting will be scheduled once all feedback has been collated and provided to Local Buy. MEMBER ENGAGEMENT The Queensland Division committee hosted a member lunch in June to provide direct feedback to our members on the work currently being undertaken by the QLD Division. It was also an opportunity for members to provide direct feedback to committee members of issues of relevance to their firms. Members and the committee both benefited from this meeting and it is proposed that this become a six-monthly event. FUTURENET By the time this edition goes to print QLD FutureNet will have held 2 events since the last edition of this magazine. 160 young professionals gathered on 30 June 2010 to see the financial year out at FutureNet’s 2010 Trivia night – ‘7 deadly sins & business’. Each round touched on one of the deadly sins, with 4 of the rounds having guest speakers from industry. Katie O’Brien from BVN Architecture led the way with an enlightening look at how ‘lust’ influences/affects design. She was followed by Paul Greaney from Sinclair Knight Merz who provided his take on how ‘pride’ fits into the business world. Gregg Woolley, St George Bank, then had the unenviable task of selling how ‘greed’ is good, and to round out the night lawyer Steve Mackie, Norton Rose, gave his view on ‘wrath’ and how to avoid it (not how it keeps lawyers in business). During the evening the participants rotated tables twice giving them all ample opportunity to meet new people and create new networks. The following event, held 25th August, ‘You’ve got money don’t waste it’ brought together 3 experts to provide all the upcoming young professionals with some great tips on how to create and maintain their wealth.

The next event is scheduled for October, with the guest speaker confirmed – Lord Mayor Campbell Newman, so if you are not already a FutureNet member, please join to stay informed about all FutureNet activities.

James Brotherson, AECOM showing the moves required to take out the top prize at the 2010 FutureNet Trivia night.

FIDIC COMPETITION Entries for this year’s competition closed on Friday 23 July. 11 bright young professionals are now in with a chance to win a trip to the 2011 FIDIC Conference to be held in Tunis. We congratulate all entrants, and their firms for supporting them and wish them luck with this exciting competition. If you missed out this year, but would like to ensure you or your staff are kept informed of next year’s competition (which will include the prize of a trip to the 2012 FIDIC conference in Seoul, Korea) please email qld@consultaustralia.com.au with your details.

Scott Johnson and Jared Brook, both of AECOM ponder the ‘hot seat’ questions

For more information about any of the Queensland activities mentioned please contact QLD State Manager, Stacey Rawlings on (07) 3020 3403 or email qld@consultaustralia.com.au. UPCOMING EVENTS 28 September – Industry Breakfast – Transport: Brisbane now and in the future – Speaker: Luke Franzmann, CrossRiver Rail September/October/November – Member Sessions The People Performance Series: delivering productivity and profitability through your people. This 3 part series will include the following afternoon sessions which will all include post-event member networking sessions: • Wednesday, 15/09/10 - Leadership and Managing Performance: bring out their best through active management • Wednesday, 13/10/10 - Building Team Spirit: maximise e productivity through teaming • Thursday, 04/11/10 - Attraction and Retention: Save $87,000 by attracting the right people and keeping them hem Speaker: Dave Jones, Talent Management. These sessions ons can be booked as a group or as individual events. 20 October – FutureNet Event – Career Chameleons: man adapting to change – Speaker: Lord Mayor Campbell Newman

Steve Hogg, Tucker and Cowen, the sinful MC for the night awards Jared Brook, AECOM a ‘hot seat’ round prize for his table

SPRING 10 National Outlook

STATE NEWS

WA DIVISION

SAFE DESIGN GUIDELINES FOR SMALL PROJECTS The WA Commission for Occupational Safety and Health (Worksafe) Code of Practice - Safe Design of Buildings and Structures (COP) was released in WA in June 2008 . The COP has proved effective in raising awareness amongst the building design professions of their responsibilities but it has proven much less effective in providing practical guidance as to how to fulfil these responsibilities, particularly for small and medium sized projects . In response to a growing sense of frustration and uncertainty amongst the building design professions (including Consult Australia members) as to how the COP should be applied to small and medium sized projects the WA committee of the Australian Council of Built Environment Design Professions (BEDP) has initiated a study to track the application of the COP to two model small/medium sized projects . The study will be untaken in conjunction with Worksafe and Building Management and Works with the aim of developing a generic guide for the design professions leading to increased certainty, efficiency and increased compliance with legal obligations. WATER CORPORATION •

“The Urban Development Advisory Committee was presented with the capital program for the Water Corporation for the next 5 years at its recent meeting. Capital expenditure will be reduced from current levels and will be dominated by construction activity.”

•

First PPP for Mundaring Water Treatment Plant short listed to two from a total field of seven.

•

Asset management industry sounding issued

•

UDAC technical sub committee continues to meet with the biggest issue remaining being the services entry to cottage lots with reduced frontage and electrical pillar separation requirements.

•

Pilbara desalination and water supply EOI issued.

•

Metro northern corridor continues to develop with infrastructure requirements

Landcorp •

Considerable activity in the Pilbara with land development and infrastructure upgrade to cater for mining and other ventures

CENTRE FOR EXCELLENCE AND INNOVATION IN INFRASTRUCTURE DELIVERY (CEIID) On Wednesday 21 July CEIID hosted a briefing to discuss the 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

National Outlook SPRING 10

event with The Hon. Bill Marmion, Minister assisting the Treasurer who spoke 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 infrastructure. The presentations delivered on the day can be accessed via the Events section of the CEIID website located at http://www.ceiid.wa.gov.au. AGM WA David Porter has recently completed his two years as chairman of Consult Australia. David was instrumental in cementing the Consult Australia brand here in WA following the very successful March launch of the name change at the Consult Australia & - Curtin University Seminar 2010. This was held in the beautiful surrounds of Frasers Marquee Kings Park with a successful turnout of 350+ people from Government, members and non members alike. David has co-ordinated major land developments in Perth and Regional WA, played a major role in numerous Regional planning studies, coordinated the civil engineering services for notable Regional shopping centre developments and coordinated major infrastructure developments for local and state government and private enterprise. David is a Fellow of both the Institution of Engineers Australia and the Institute of Public Works Engineering Australia. David has been active with the WA Executive Committee of Consult Australia for 9 years has served the roles of Treasurer and Chairperson.

Judith Uren was appointed chairperson of Consult Australia. Judith is currently Director responsible for civil infrastructure at BG&E Pty Limited and has over 30 years experience. She has extensive design experience on major bridge structures in Australia and overseas, and has provided the lead management role on multi-disciplinary projects including projects that require high level and complex liaison with clients, contractors and other stakeholders. She has considerable experience with Design and Construct projects, and more recently in Alliance Contracting. Judith has been active with the WA Executive Committee of Consult Australia for 4 years. She was a foundation member and past chair of the Women in Engineering Panel of Engineers Australia (WA) and. has also served on the Concrete Panel of Engineers Australia (WA) for 5 years.

STATE SPONSORS

FUTURENET SPONSORS

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PITI PITI – SLOWLY SLOWLY HELPING THE UN TO HELP HAITI HELEN SALVESTRIN IS AN ENGINEER ON DEPLOYMENT WITH HUMANITARIAN AGENCY REDR AUSTRALIA TO PORT-AUPRINCE, HAITI FOR SIX MONTHS TO SUPPORT THE WORLD FOOD PROGRAMME’S (WFP) EMERGENCY RESPONSE TO THE JANUARY 2010 EARTHQUAKE. HELEN REFLECTS ON SOME OF HER EXPERIENCES IN HAITI, REALISING THAT RESPONDING TO A HUMANITARIAN CRISIS IS A WORLD AWAY FROM CONSULTING WORK IN SYDNEY. The WFP Haitian earthquake response: 1 million rations to more than 200,000 people in the week after the earthquake; within six weeks, 4 million people were reached. Tens of thousands tonnes of food are now pre-positioned in readiness for the hurricane season. Nearly 200 WFP staff, nutritionists, logisticians, drivers and food aid monitors continue to respond to the urban Caribbean disaster. Alongside nearly 250,000 Haitians who were killed in the earthquake were United Nations (UN) workers. The WFP office and warehouses were destroyed together with houses, churches, schools and vital civil infrastructure. In the first few months after the earthquake, the existing compound for the UN stabilisation mission became home and office for UN workers. Now it’s a rather congested office compound for multiple UN agencies. Bring in the engineers to save the day! ‘Area 5’, as it is known locally; an ex-quarry, dumping site of plane and car wrecks, was to undergo a massive transformation. Fellow RedR Australia Standby Register member, Andrew Duggin and I set ourselves up in a single prefab office in a UN village that squashed over 1,000 UN workers into less than four hectares. In the early days the site exceeded probably every Sphere standard for site planning and excreta disposal (early on we were probably 200 to a toilet!). 54

National Outlook SPRING 10

As an engineer tasked with rebuilding UN infrastructure, I do not directly feed the population, I have no idea about the nutritional value of supplements being distributed. I receive many an odd look when I mention that I am an engineer working for WFP! Nor, as a former water and sanitation engineer, do I monitor how much water or how many toilets Haitians have access to in the camps. The worlds of more than 1,300 camps for displaced Haitians are far removed from my daily routine. For someone who loves working directly with the community, thrives on tangible results at the local level, gets a real thrill from ‘cross-cultural experiences’, and can’t wait to try her hand - not matter how embarrassingly - at the local lingo, this has been a little more than challenging and frustrating. I do however build toilet blocks, install air conditioners, construct roads, car parking and drainage so that UN workers can support a massive displaced Haitian population and build community resilience against the next season of cyclones, hurricanes and storms. My reward...the look of visible relaxation on people’s faces when they have not had to queue for ten minutes for a toilet; when three people are living in a 12 square metre space instead of the original seven. I am hoping, any day soon, they will have running water

to wash their hands! It’s the little things that count in Area 5 of the UN compound in an emergency response! In the process of this UN reconstruction, I confront some of the same challenges as fellow WFP staff who are distributing food to some of the 2.3 million displaced Haitians. The fuel shortage as a result of delays in the supply pipeline; the tropical storms that dump half a metre of rain in an hour - blocking streets; the lack of standardisation, knowledge, implementation or enforcement of building codes that may save lives in subsequent earthquakes and shortages of building materials due to over demand created by the massive reconstruction effort. The six month memorial of the earthquake was recently observed. As we bowed our heads for a minute’s silence, I quickly glanced at some of the national staff, who come to work each day from underneath a tarpaulin. I suspect they don’t need the moments silence to remember who and what was lost six months ago. I suspect they confront it all day and every day – a timely reminder for this site engineer in Area 5, of why I am really here.

Helen Salvestrin Visit www.redr.org.au to learn more about RedR Australia’s Standby Register and humanitarian training programme.

REDR AUSTRALIA’S RESPONSE TO THE PAKISTAN FLOODS REDR AUSTRALIA HAS DEPLOYED FIVE PEOPLE FROM ITS STANDBY REGISTER TO THE RELIEF OPERATION IN PAKISTAN. The monsoonal rains and subsequent flooding have submerged one fifth of the country causing a devastating impact on 20 million people. The scale of the disaster has shocked one of our most experienced Register members, a logistician who deployed to the World Food Programme within days of the United Nations appeal for assistance. After returning from a recent airdrop last week where he saw families living on their roof tops, he commented that despite being a veteran of this sort of work, the plight of the people brought a lump to his throat; such is the magnitude of the disaster. He is joined by another logistics specialist and an aviation coordinator, both of whom are also working around the clock to move tonnes of food and supplies. Further air movement assistance will be provided by two more specialists from the Standby Register who are preparing to depart. Sharing information from the field is essential in an emergency response. A Humanitarian Affairs Officer is working with the UN Office for the Coordination of Humanitarian Affairs (OCHA) which is tasked with ensuring that information is exchanged so that a coordinated response between aid agencies is achieved. Our fifth contributor, who has only recently returned from an assignment in Haiti, will ensure humanitarian workers have the IT and telecommunications they require to launch relief operations.

REDR AUSTRALIA IS A HUMANITARIAN AGENCY WHICH MAINTAINS A STANDBY REGISTER OF HIGHLY SKILLED PERSONNEL FOR UNITED NATIONS AGENCIES AND OTHER ESTABLISHED FRONTLINE AID ORGANISATIONS TO DRAW ON FOR SHORT-TERM EMERGENCY AND DISASTER RELIEF WORK.

A Child Protection Officer is the next to depart. She will work to ensure the needs of the most vulnerable are met during this difficult time in their lives. An Emergency Resource Mobilization & Contribution Management Specialist is also preparing to leave Australia. She will liaise with potential and current UNICEF donors and will share the impact of their contribution. RedR Australia is waiting to hear whether our other nominees will be taken up by the UN agencies. The situation on the ground is changing daily and therefore staffing needs change with it.

potential and experienced aid workers with the specialised skills and knowledge to maximise their effectiveness in the field. Further details about RedR Australia’s Standby Register and training courses can be found at www.redr.org.au. Consult Australia is a founding body of RedR Australia.

Belinda Johnston RedR Communications Coordinator

Disaster relief personnel on RedR Australia’s Register remain on standby ready to respond to the threat posed more flooding in the south of the nation. The anticipation is that coming months will include the mobilisation of more specialists, in response to emerging needs. RedR Australia is a humanitarian agency which maintains a Standby Register of highly skilled personnel for United Nations agencies and other established frontline aid organisations to draw on for short-term emergency and disaster relief work. RedR Australia is also a leading provider of humanitarian response training courses. These courses help equip SPRING 10 National Outlook

INDUSTRY NEWS

CHANGES AFFECTING THE SUBCLASS 457 VISA PROGRAM FROM 1ST JULY 2010 Introduction of ANZSCO – a new occupation classification standard From 1 July 2010, the Department of Immigration and Citizenship switched from the Australian Standard Classification of Occupations (ASCO) system to the Australian and New Zealand Standard Classification of Occupations (ANZSCO) system. While the same occupations remain eligible for the Subclass 457 program, they are described differently and are assigned new codes. All nominations that were received by the Department on or after 1 July 2010 defining an ASCO code will not be able to be approved. Clients in this situation may request in writing that the nomination application be withdrawn and the fee refunded. The ANZSCO list of occupations eligible for the 457 visa program can be found online at: http://www.comlaw.gov.au/ComLaw/ legislation/LegislativeInstrument1.nsf/0/9757 51D41E27FC88CA25774A0013EC8A/$file/10 032LI.pdf Transitional arrangements ensure that there will be no adverse effect on sponsors who have nominations approved prior to 1 July 2010 using ASCO but the corresponding visa application is lodged after 1 July 2010. Visa applications will be assessed according to which ever standard, ASCO or ANZSCO, was used in the nomination assessment.

The introduction of ANZSCO also affects how occupations currently exempt from the English Language requirement are described. Previously described as ASCO 1-3 (excluding Chefs and Head Chefs), the exempt occupations have been translated in to ANZSCO. The list can be found online at: http://www.comlaw.gov.au/ComLaw/ Legislation/LegislativeInstrument1.nsf/0/662 86524B6FD659FCA25774A0013E579/$file/10 029LI.pdf

Indexation of the Temporary Skilled Migration Income Threshold and English Language Salary Exemption Threshold From 1 July 2010, the Temporary Skilled Migration Income Threshold (TSMIT) is being indexed by 5 per cent for all new nominations, in line with the ABS report on Average Weekly Earnings.

The English Language Salary Exemption Threshold is also being indexed to $85,090 in line with the indexation of the TSMIT. Sponsors are reminded that they are required to pay their 457 visa workers the same terms and conditions as an Australian worker undertaking equivalent work in the same workplace. Importantly, this includes paying market salary rates. Where there is an equivalent Australian worker in the workplace, the market salary rate will be determined by the industrial arrangements that apply to this worker – for example, a collective agreement, award conditions with above award salary rates or a common law contract.

From 1 July 2010, TSMIT will be $47,480. The increase ensures that wages for Subclass 457 visa holders keep pace with annual wage growth for all Australians.

Where there is no equivalent worker onsite, the employer may reference a range of information to substantiate the market salary rate for that occupation. This may include relevant collective agreements and awards or other evidence such as remuneration surveys or earnings data.

From 1 July, new nominations will not be granted for the Subclass 457 program if the market salary rate for the position is below the TSMIT of $47,480. Existing visa holders will be unaffected unless they change employer and a new nomination is lodged.

Svetlanna McNeil Migration Adviser to Consult Australia Department of Immigration & Citizenship

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INDUSTRY NEWS

CONSULT AUSTRALIA NEWS Consult Australia is pleased to advise members of new staff at the National Office. Jonathan Russell (pictured) has joined the Association as a Policy Advisor bringing strong policy experience from across the public and not-for-profit sector. Jonathan will look after the Skills Portfolio, and can be contacted via email at j.russell@consultaustralia.com.au. Also joining us is Ying Ying Lin, who has taken the role of Finance and Membership Coordinator, and Morgan Bailey who is our new General Administrator. Consult Australia congratulates longstanding staff members Nicola Grayson, Director of Policy and Caroline Ostrowski, Policy Advisor and as they move on to new roles, and Jonathan Cartledge who has taken on the role of Director of Policy in the National Office.

Jonathan Cartledge

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