Melbourne Water: building water services infrastructure safely
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Melbourne Water is leading on safety and social procurement to keep the water flowing
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M E L B O U R N E W AT E R
Melbourne Water’s commitment to encouraging best practice for safety across all its assets, allied with a strong commitment to social procurement, is helping the Victorian governmentowned statutory authority secure sustainable communities for future generations 04
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elbourne Water manages $15bn worth of assets that span the entire water cycle, from waterways and wetlands, drainage
and flood management to water supply and sewerage assets – a unique model compared to most other major cities across Australia. It relies on strong collaboration with Melbourne Water’s retail water sector (for water and sewerage services) and 38 councils (for stormwater management). Melbourne Water looks after all major infrastructure, dams, pipelines and treatment plants on the supply side, and also manages the major treatment works on the sewerage side and the sewerage network down to approximately 300mm pipes. “We then interface with a number of retailers across the Melbourne metropolitan region,” explains Eamonn Kelly, General Manager, Major Program Delivery at Melbourne Water. “South East Water, City West
Western Treatment Plant, Werribee, Victoria
$1.9bn Approximate revenue (AUS)
1891
Founded as Melbourne Metropolitan Board of Works
1,200
Nutrient Removal Plant project, Western Treatment Plant, Werribee, Victoria
Approximate number of employees w w w.me l bo urne wa te r. com . a u
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CLICK TO WATCH : ‘MELBOURNE WATER’S STRATEGIC DIRECTION’ 07 Water, Yarra Valley Water and Western
paramount. But, in 2015 – when Kelly
Water deal with all the individual,
returned – the business was struggling
residential, and commercial customers.”
to deliver its forecast capital works
Melbourne Water also acts as the
programme. More importantly two of
custodian of protected catchments
the biggest tier-one contractors in the
of natural parkland waterways.
country, CPB Contractors and John
“We manage the closed catchments
Holland Group (JHG), were running
that supply the bulk of Melbourne’s
the highest total recordable injury
drinking water,” confirms Kelly. In total,
frequency rates in their state-wide
we are responsible for the health of
business units under the Melbourne
around 25,000km of waterways
Water Framework.
across the greater Melbourne Region,” confirms Kelly. Across all of its operations Melbourne Water’s commitment to safety is
Melbourne Water’s response was swift and decisive. Kelly spoke with senior leaders at CPB and JHG about what was driving these behaviours and w w w.me l bo urne wa te r. com . a u
Taking care of every drop. Communities depend on safe, easy access to clean water, from breakfast time to bath time, industrial use to irrigation, the efficient capture, storage and management of water helps keep life flowing. Since 2013, the John Holland/KBR joint venture has worked with Melbourne Water to deliver its capital works program. Working together and thinking differently is transforming our approach to safety, wellbeing and social procurement to improve the programs outcomes. We are market leaders in providing solutions in water infrastructure that address the future needs of communities and our customers. Our strong track record of delivering critical water infrastructure is a testament to our commitment to transforming lives.
johnholland.com.au kbr.com
how to fix the problem. “We weren’t just pointing a finger at the contractor to improve safety performance,” explains Kelly. “We wanted feedback to learn what it was about our framework that was causing this.” A number of interventions were designed to collectively fix a number of issues but the main problem was that the commercial model in place was driving the tier one contractors towards a heavily subcontracted model. “We were pushing a lot of risk on the
“ We push each other to achieve zero harm and produce quality projects second to none. Our team is accustomed to the diversity that Melbourne Water projects bring along with the collaborative and inclusive partnership we all feel is a recipe for success” — David Harry, Director, Delcon Civil
subcontractors, and their way of managing that was passing that risk on
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to their subcontractors,” he explains. “We were seeing a highly transient workforce across all of our projects,
joint venture and Downer/Abergeldie/
with three or four levels of subcontrac-
Stantec (this Safety Focused Perfor-
tors on some of our work sites.
mance joint venture also includes
Basically, you never knew what you
Downer) to deliver the bulk of the
were going to get on site in terms of
framework. “We also switched to a self-
people turning up with the right
performed model on the lower end of
behaviour and mindset in such a
our capital delivery framework for
high-risk environment.”
projects below $2mn,” says Kelly.
Melbourne Water set about changing
“We targeted smaller contractors with
that, which led to retendering the
the means to self-perform to come
framework in 2017 with a view to reduc-
together. AquaMetro Services started
ing subcontracting levels to nominated
off delivering around $20mn in its first
like-minded companies while keeping
year. Last year, it delivered $33mn of
trusted consortia like the JHG-KBR
total work for us. In the first two years w w w.me l bo urne wa te r. com . a u
M E L B O U R N E W AT E R
“ We switched to a self-performed model on the lower end of our capital delivery framework. In the first two years, we didn’t have one recordable injury” 10
— Eamonn Kelly, General Manager, Major Program Delivery, Melbourne Water
we didn’t have one recordable injury, predominantly due to the fact they started small, handpicking the people that they would use to self-perform on their jobs. Get good people on your work sites, build a level of trust and capability in that safety performance, then safety should look after itself. We’re seeing that, even in our major framework. Our safety performance indicators came down from levels up around 15; now they’re at two to three. There’s still room to improve, but we’re in a better place than three years ago.” Mal Shepherd, General Manager Water Services at John Holland adds. “We
CLICK TO WATCH : ‘MELBOURNE WATER GENERATIVE SAFETY CULTURE EVENT’ 11 started the generative safety culture
Water. “We role-played what a good
journey with Melbourne Water with the
pre-start meeting should look like,”
purpose of together moving the
adds Kelly. “We gave staff a line in the
dialogue toward a more mature
sand around our expectations, and
approach to how work is planned and
what could happen if they’re not met.
undertaken by the workforce. But,
It was a very powerful tool for our
more importantly, to create an environ-
supervisors on-site so we’re keen
ment of trust where we could learn
to continue that process with our
more deeply from our mistakes.”
construction workers.”
Recent interventions to improve
Melbourne Water is planning further
safety protocols have included staging
initiatives like these to promote a truly
a mock incident, followed up with court
generative safety culture rather than
scenarios featuring professional police
simply focus on the stats: “We can
prosecutors, to further educate staff
learn from others, they can learn from
on what’s expected at Melbourne
us. We need to continue the conversaw w w.me l bo urne wa te r. com . a u
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tion, that’s how I think we can get better
feedback is a gift – positive or negative,
as an industry in this safety space, with
it’s a learning opportunity.”
a collaborative approach,” he says,
Delcon Civil (now under the JHG
noting that pushing towards these
consortia) has worked with Melbourne
safety goals at Melbourne Water has
Water for the past 15 years, sharing the
not been without its challenges. “We’ve
same expectations around safety.
had to develop trust around the safety
“We push each other to achieve zero
leadership table to allow open and
harm and produce quality projects
frank two-way feedback. Contractors
second to none,” says Director David
and consultants are always happy to
Harry. “Our team is accustomed to
receive feedback from the client, but
the diversity that Melbourne Water
don’t like biting the hand that feeds
projects bring along with the collabora-
fearing the client could take their
tive and inclusive partnership we all
feedback negatively. One of the
feel is a recipe for success.” Quality
phrases we coined was that all
Site Welding work under the Safety
E XE CU T I VE PRO FI LE
Eamonn Kelly A former General Manager of the Infrastructure Group at Melbourne Water, where he previously worked for seven years, Kelly left to pursue challenging infrastructure roles with Connex Melbourne, Black & Veatch and Thiess Services where he was General Manager for Water. Returning to Melbourne Water in 2015, his experience bringing people together to build high performing teams has collaboration at its heart: “I focus on trust, respect, and the ability to give frank and open feedback. If you can do that, you’ll run a successful project.”
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M E L B O U R N E W AT E R
Focused Performance consortia and
and building capacity in the workforce
its General Manager Bruce Kerr
to be agile, more risk conscious and
echoes that positivity: “I’m not aware
adapt work plans to suit change in the
of many clients that constantly drive
work environment.”
communication in the safety space like Melbourne Water. It feels inclusive,
procurement, Melbourne Water is also
they want to work with all of their
facilitating a number of initiatives
contractors so everyone can buy into
aligned with the Victorian Govern-
the culture.” This culture was recog-
ments Local Jobs First policy. One
nised with a WorkSafe award for safety
such initiative was started within JHG.
leadership in 2018, and has resulted
The Pathways Program began in
in Melbourne Water being shortlisted
response to Victoria’s infrastructure
once again for 2019.
boom by exploring different avenues
Kelly believes the key to engaging 14
Through its commitment to social
the workforce lies in developing
for the recruitment of talent. “Migrant professionals were a relatively
relationships, and by employing authentic safety leadership in every site interaction. “You can’t do that at one forum with 300 people in a room, you have to get out and about. It’s not about documentation and apportioning blame. We’re always getting new people on site so you can never take your eye off the ball. You have to talk to people, be visible on site and be seen to be taking their safety seriously.” Shepherd adds: “We want to make working safely a habit across the water industry. This requires bridging the gap in our thinking away from more rules and tools, to decluttering our approach
Niru Gosavi, Melbourne Water’s Program Delivery Director (center) is championing the Pathways Program and is pictured here with participants Evelyn Mugisha and Chris Daramola
CLICK TO WATCH : ‘MELBOURNE WATER PATHWAYS PROGRAM’ 15 untapped resource,” recalls Kelly. “JHG formed a partnership with Jesuit Social
“ Social responsibility is integrated into our business model. To us it means fulfilling our duties and responsibility towards society, especially the Traditional Owners of the Country Australia” — Marcus Wade, Director, Aqua Metro Services
Services, a not-for-profit social services organisation supporting the migrant workforce entering Australia. Jesuit Social Services used its network to advertise for project and construction engineers, leading to JHG taking on 21 new team members. Glenn Crisp, Regional Construction Manager for JHG says: “The John Holland Pathways Program was one of the most rewarding experiences of my professional life. We know there are benefits in a diverse workplace. It was certainly a positive w w w.me l bo urne wa te r. com . a u
Leadership Team
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Melbourne Water: technology Melbourne Water is eager to embrace new solutions to maintain and enhance its infrastructure. Kelly concedes that, like most major infrastructure organisations, there are still challenges to overcome in the adoption of technology and process to support a mature and progressive adoption of digital engineering. “We’re catching up now with 3D design and VR for design reviews,” says Kelly. “We’re focused on leveraging automation and IoT for monitoring, 3D visual representation of our assets and automation, which is much easier now with the use of local monitors, drones and VR. Utilising VR for design reviews is now common practice” he adds. In the construction or built asset space, the corporation is aiming to
implement BIM (Building Information Modelling) “throughout the asset lifecycle” on future projects to improve the efficiency of Melbourne Water’s assets. Meanwhile Melbourne Water is also making use of real-time controls across its drainage network to address potential blockages. “We are the custodians of the waterways so we have to look after both the quality of water and how it’s drained to minimise the impact of f lood” adds Kelly. When heavy rainfall occurs “we have to respond quickly, so we’re utilising IoT devices with the ability to perform real-time monitoring of blockages of our drainage network to enable us to respond quickly to minimise any potential impact on our customers.”
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M E L B O U R N E W AT E R
20 experience for the candidates but the
“ When you build a passion in people that makes them want to come to work, and you look after their wellbeing, they will repay you in spades and your projects will be all the better for it” — Eamonn Kelly, General Manager, Major Program Delivery, Melbourne Water
energy that these people brought to the workplace was more than I expected. We ended up with some very capable and competent engineers that before this were unable to get an opportunity in the workplace”. Kelly adds: “We’ve just kicked off our first cohort of eight Pathways participants. Some of them had been applying for jobs as civil engineers, for over three years, and never got to interview. The fact they were still applying shows a great level of resilience and tenacity. The energy and passion they now bring into the business is just incredible.”
ment to bring young indigenous graduates through the system, and – as part of our long-term initiative – hopefully put them through college to give them a future in their chosen discipline within the construction industry, whether that’s civil, electrical or mechanical.” AquaMetro’s Director, Marcus Wade believes that every organisation, regardless of scope, has the power to make a difference to the world around it. “Social responsibility is integrated
Melbourne Water Pathways Program participants
into our business model,” he says. “To us it means fulfilling our duties and responsibility towards society especially
Another progressive social procure-
the Traditional Owners Of the Country
ment initiative is focused on lifting the
Australia. We are deeply invested in the
level of indigenous participation within
financial success and economic
the construction industry. “Due to the
independence of Indigenous Australians.”
pressures of recent history we just
Melbourne Water has incorporated
don’t see enough indigenous workers
a number of social procurement KPIs
in the mainstream workforce,” notes
into its new framework agreements.
Kelly. “We’re trying to promote new
“the more entities that are actually
pathways by supporting AquaMetro
driving in the same direction, the more
Services with the creation of a 100%
successful we’re going to be,” says
indigenous subcontractor. We will
Kelly. “Our contractors realise they
assist with schooling and training to
need to contribute also. It’s proven now
enhance their capabilities so they can
that the more diverse your workforce,
start their own business and operate
the more successful you’re going to be
as an independent contractor. This will
and the more we reflect the make-up
provide a safer, more trusting environ-
of our communities, the more we can w w w.me l bo urne wa te r. com . a u
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M E L B O U R N E W AT E R
John Holland Group & KBR Promoting Safety & Diversity
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John Holland Group ( JHG) is among Australia’s leading contractors and plays a key role in helping Melbourne Water deliver an ambitious capital works program. Mal Shepherd, JHG’s General Manager, Water Services praises the efforts made by Melbourne Water to promote a positive safety culture where the workforce is inspired to take ownership of work plan solutions: “We want to make working safely a habit, not only for John Holland but across the water industry. This requires bridging the gap in our thinking away from more rules and tools, to building capacity in
connect with them.” Looking to the future, the JHG-KBR
the workforce to be agile, more risk conscious and adapt work plans to suit change in the work environment.” Addressing the need for diversity in the workforce, Glenn Crisp, JHG’s Regional Construction Manager in Victoria, cites the JHG Pathways Program as among the most rewarding experiences in his professional life: “The energy these people brought to site was more than I expected. We ended up with some very capable and competent engineers that before this were unable to get an opportunity in the workplace.” JHG’s joint venture with KBR has
highly collaborative model within a competitive framework,” explains Kelly.
joint venture and the Safety Focused
“Therefore, in the safety and social
Performance consortia will compete
procurement spaces, you get both
for the bulk of Melbourne Water’s
consortia working together and
capital works program (approximately
sharing ideas because it helps them
$200m/annum). “The model’s interest-
attain their KPIs with us. That’s what
ing because it’s not an alliance but a
we’ve nurtured with them, and they
there’s a lot of collaboration that works across and underpins that.” Kelly is proud of the initiative which has fostered a high level of trust within thrived with Melbourne Water’s long-term approach, bringing value to customers via a programmatic mode of delivery. “The benefit is realised through continuous improvement, standardisation, consistent development of people, and the supply chain, to deliver innovative solutions,” explains Wayne Nolan, KBR’s Vice President, Infrastructure Services, Australia. “We began providing services to Melbourne Water in 2013 and over this time formed strong and positive relationships with Eamonn Kelly and his team. We look forward to continuing to safely deliver a high standard of customer outcomes.”
the framework. He’s keen to develop long-term partnerships like these to be able to meet the needs of Melbourne’s “overheated” infrastructure boom. “We don’t want to lose their input because when we get it right it becomes an effective self-fulfilling model; one founded on keeping those contractors and subcontractors with an amount of work that makes their business sustainable.” It’s a major reason why the future looks bright for Melbourne Water pledges Kelly: “When you build a passion in people that makes them want to come to work and you look after their wellbeing, they will repay you in spades and your projects will be all the better for it.”
realise that success for the two consortia is very much dependent on the success of their competitor, because if one of the consortia starts outstripping the other, the whole model fails, and we’ll be back out to market. We’re looking for continuous improvement through direct competition, but w w w.me l bo urne wa te r. com . a u
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