Summer 2013-14 Consulting Matters by Consult Australia

Summer 2013-14

Consulting Excellence Consult Australia 2013POLICYWINS Building a culture of excellence

2013 FIDIC Centenary Award winners Harbour Bridge achievement stands test of time Sydney Opera House: A modern icon for all generations

2013 Awards for Excellence A night on the town Page 32

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Consulting Matters

CONTENTS

2013 Awards for Excellence A night on the town Page 32 Industry updates 2

What’s on in our industry

What’s happening in Consult Australia From the President

From the CEO

Consult Australia staff appointments

2013 Policy Wins

The boiling frog syndrome

Corporate social responsibility

Building a culture of excellence

Seeking refuge in the desert

No time like the present to position for prosperity

Features

Industry updates

Habour Bridge achievement stands test of time

Economic Forecast

Professional Indemnity (PI) insurance—policy excellence

Sydney Opera House: A modern icon for all generations

Beneath the headlines—gender pay equity, why we should care

Modern thought processes for road and infrastructure design

Time to get smarter with infrastructure funding

Business essentials

International Excellence

Collecting employees’ personal data 83

State updates

FutureNet updates

Flexible working: why the time is right for industry to embrace change 83

Our industry

Protecting your business

Consult Australia and the Federal Election

Awards special

Rail Industry Worker Competence Management System

Industry comment A word about diversity

Consulting Matters

Industry updates

Industry updates NEW APPOINTMENTS

Arup appointment David Spink has joined Arup’s Melbourne office team as its Australasian Environment Leader. David brings with him more than 25 years experience as Project Director and Project Manager in environmental management of projects across transport, water, energy, industrial and government sectors.

Beca executive appointment

Aurecon’s new industry director

Beca has recently appointed Craig Lee (top) as General Manager of Defence. Craig brings with him over 20 years of defence experience including a number of program roles in the Defence Materiel Organisation, policy development roles in the Navy, and engineering leadership in operational roles in Royal Australian Navy warships.

Aurecon has appointed David Radcliffe as Transport Industry Director, replacing Phil Hendricks who will now head up the company’s Gauteng office. Radcliffe’s appointment will see him lead Aurecon’s transport industry team, helping build strong relationships with the company’s transport clients.

GHD Market Leader for Energy & Resources

Parsons Brinckerhoff appoints strategic roles to lead its power business

GHD has appointed Mark Read to the position of Market Leader for Energy & Resources. He takes over from David Luscombe, who is now GHD’s South Queensland Manager. In his new role, Mark will lead the company’s service offerings to clients in the mining, oil and gas and power sectors. His most recent role was leading the global minerals unit at KBR.

Parsons Brinckerhoff has strengthened its Asia Pacific power business with the appointments of Tom Campbell and Gary Neave, who will lead the power business in Asia and Australia/New Zealand, respectively.

Indesco’s capabilities expand into structural engineering with Aaron Hazelton Aaron Hazelton will head up Indesco’s new structural division and brings a strong reputation, a record of accomplishment in providing comprehensible constructible solutions in all areas of structural design and assessment with innovative solutions.

URS appoints Kelly Maslin as Water Business Line Leader Kelly Maslin (top) has recently been appointed to the position of URS Water Business Line Leader, Australia and New Zealand. Kelly has a strong background in civil design works, hydrology and hydraulics, risk assessment and project management and has significant experience in facilitating workshops including risk assessment workshops, and option assessment and selection workshops.

MAJOR WINS Australia to host 2019 ‘Olympics’ of engineering Australia will host the 2019 ‘Olympics’ of engineering, after Engineers Australia won the competition to host the four-yearly World Engineers’ Convention. The Convention is the peak general assembly of delegates from 90 national engineering associations and attracts between 4,000 and 5,000 attendees.

Parsons Brinckerhoff’s Tessa Ogle secures a double-win at 2013 Telstra NSW Business Women’s Awards Parsons Brinckerhoff’s General Manager for Oil and Gas, Tessa Ogle has secured a recent double award-win at the 2013 Telstra NSW Business Women’s Awards in the Private and Corporate Sector and the Young Business Women’s categories. Telstra judges said they were impressed by Ms Ogle’s strong strategic vision and commitment to drive change in her industry. See page 96 of this edition of Consulting Matters to read Tessa Ogle’s industry comment.

FutureNet Chair takes out WA Young Professional Engineer of the Year BG&E Senior Structural Engineer, Garrett Bray has won Engineers Australia WA Young Professional Engineer of the Year. Garrett was recognised for his contribution to BG&E’s growing reputation, his history of significant pro bono work and contribution to the industry through positions including WA FutureNet Chair and Consult Australia representative on the Asia Pacific Young Professional Steering Committee for the International Federation of Consulting Engineers (FIDIC).

SLR appointed to Master Service Agreement for BP’s Lighthouse and Atlas contracts SLR Consulting Ltd has been awarded two contracts by BP Remediation Management to provide consulting services throughout BP’s assets outside North America. The company has been awarded the work under the BP Lighthouse and Atlas contracts. WGE part of team chosen to sink the Wellington Street Bus Station Wood & Grieve Engineers (WGE) is proud to announce they are part of the successful consortium with Brookfield Multiplex and BG&E, which will now form an alliance with the Public Transport Authority (PTA) to build a new state-of-the-art underground bus station in Perth. The project has an investment value of $249 million and is essential to the

Industry updates

Consulting Matters

$4 billion Perth City Link project and will be the final step in reconnecting Perth and Northbridge.

Industry news SKM merges with Jacobs in $1.3bn engineering deal New York-listed Jacobs Engineering has purchased Sinclair Knight Merz (SKM) for $1.3 billion in one of the largest recent global deals in the engineering industry. Jacobs Engineering, based in California and listed on the New York Stock Exchange, is believed to be interested in expanding its presence in Australia.

Editor Gillian O’Young

President Green Star - Performance launch: (from left) Grocon CEO, Daniel Grollo; GBCA CEO, Romilly Madew; and Senator Christine Milne Photo courtesy of GBCA

Jamie Shelton

Chief Executive Officer Megan Motto

Chief Operating Officer Julia Lemercier

Hyder Consulting acquires PLD Hyder Consulting recently announced the acquisition of PLD Consulting Pty Ltd. PLD is a Queensland-based consultancy specialising in the design of high voltage overhead and underground transmission and distribution lines both in Australia and internationally. This is the third acquisition for Hyder’s Australasian business in the last 18 months. APESMA name change The Association of Professional Engineers, Scientists and Managers Australia (APESMA), has changed its name to Professionals Australia. The Association represents Australian engineers, scientists, managers, pharmacists and other technical professionals and CEO, Chris Walton said that the former name, APESMA didn’t reflect many of the occupations the association represented. ISCA announces Australia’s first As Built Rating ISCA has formally awarded Australia’s first certified IS As Built rating to the City East Alliance team who delivered the Great Eastern Highway Upgrade on behalf of Main Roads Western Australia. The extensive use of recycled materials, reducing the use of non-renewable resources of limestone, sand and bitumen were important features of the project.

Australia’s under-performing buildings set for a green makeover On Thursday, 10 October 2013, the Green Building Council of Australia (GBCA) launched its Green Star – Performance rating tool (top). The tool is the result of the collaborative efforts of Australia’s property and facility management industries, which have worked together to create a holistic method of measuring existing buildings. Green Star – Performance is marketed to enable building owners and managers to identify pathways to improve the environmental and financial sustainability of their assets over time.

National Finance Manager Pete Constantinidis

Director of Policy & Government Relations Jonathan Cartledge

Senior Advisor, Policy & Government Relations Jonathan Russell

Senior Advisor, Policy & Government Relations Robin Schuck

National Events Manager Alexandra Hopper

Designer Voltaire Corpuz

National Manager Professional Development Ezra Atik

Protecting Professionals

Executive Assistant Kerri Clifford

Consult Australia’s insurance partner changes brand identity Effective on 8 November 2013 one of Consult Australia’s PI Pathway partners, Planned Professional Risk Services has become Planned Cover. This marks a significant milestone for the company and a demonstration of its commitment to simplify and consolidate its products, services and key messages. With nearly 40 years of specialist service to the planning, design, engineering and construction professions, Planned Cover was again awarded ANZIIF’s Small Broker of the Year for 2013.

National Operations Manager Sarah Lutton

DIBP outreach officer Satinder Pasricha

Editorial submissions gillian@consultaustralia.com.au

Advertising enquiries info@consultaustralia.com.au Consulting Matters is produced by Consult Australia. Phone: (02) 9922 4711. Website: www.consultaustralia.com.au

Consulting Matters

Industry updates

What’s on in our industry Global

Western Australia

September 28-October 1, Rio de Janeiro FIDIC 2014 Conference: Sustainable solutions for a changing world www.fidic.org

May 8-10, Perth 2014 National Architecture Conference www.architecture.com.au

Victoria December 10, Melbourne Infrastructure financing with Sir Rod Eddington www.ceda.com.au March 18-19, Melbourne Green Cities 2014 www.greencities.org.au/

Queensland

South Australia December 11, Adelaide Consult Australia: South Australia December Industry Breakfast www.consultaustralia.com.au

Tasmania December 11, 2013, Hobart Roads Australia Christmas Luncheon with Minister O’Byrne www.roads.org.au/events/show/380

Gamcorp And Associate member: Inside Eagles

Industry Contributors Alister Berkeley - PwC

AON Hewitt

Jenny Maree - VSC Growth

Australasian Railway Association

Tara Hill - Deloitte Private

Beca

Simon Gray - Planned Cover

Hyder Consulting

Arup

Dr Donald Charrett Ener-G Management Group Entura

March 13-14, Sydney Infrastructure Sustainability Council of Australia (ISCA) Awards Dinner and Conference www.isca.org.au/

Tessa Ogle - Parsons Brinckerhoff

Graeme Gummow

Acmena

New South Wales

Sean Twoney - A2K Technologies

Consult Australia welcomes new member firms:

Candalepas Associates

December 12, Brisbane Roads Australia Christmas Luncheon with Minister O’Byrne www.roads.org.au/

Lucinda Hewitson - Lucinda Hewitson Consulting

Welcome new member firms

Industry updates

Letters to the Editor Agree or disagree with something you’ve read in this edition of Consulting Matters? Want your comment heard on the issue? Send a letter to our Editor (max 200 words) at gillian@consultaustralia.com.au. Letters to Consulting Matters must carry the sender’s name and firm. We do not acknowledge the receipt of unpublished letters. When submitting your letter for publication you agree that we may edit it for legal, space or other reasons.

Consulting Matters

Not a member of Consult Australia? To find out more about how your firm can benefit from our: • Benchmarking; • Business support; • Staff development;

Industry comments

• Business development; and

What do you think is the most pressing issue our industry is today facing? Submit an industry comment to Consulting Matters by sending an email to our Editor at gillian@consultaustralia.com.au. You can speak about any subject matter you wish. Write about issues you feel are important to the consulting industry—government policy, business issues, opinions on consulting related topics, changes you feel the industry should make or anything in between!

Contact National Operations Manager, Sarah Lutton on (02) 9922 4711 or email membership@consultaustralia.com.au

• Policy

www.consultaustralia.com.au

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Consulting Matters

What’s happening at Consult Australia

From the President A critical component of ‘consulting excellence’ entails looking at the bigger picture and working with others in order to raise the bar across the board. It is about collaboration and cooperation, and about facing challenges together.

that our industry is one that has a huge impact on society; and is therefore in a constant spotlight and is expected to excel at all times.

It’s clear that in the consulting industry there are many firms that are deserving of the title of an ‘excellent business’. These firms see year-on-year achievements and celebrate enduring success across a number of areas. Some firms are recognised in the numerous industry awards programs that are run each year, including those profiled in this special 2013 Awards for Excellence edition of Consulting Matters. I applaud these firms not just for their success, but for the external recognition and internal inspiration they provide for those across the built and natural environment consulting industry. Recognising and celebrating excellence of fellow consultants is critical to the continued advancement of the industry—however it is not the whole story. A critical component of ‘consulting excellence’ entails looking at the bigger picture and working with others in order to raise the bar across the board. It is about collaboration and cooperation, and about facing challenges together. Consult Australia represents those firms who plan and design the built environment, and in this role, we are an integral part of a much bigger industry. This is an industry on which this country depends on to deliver muchneeded infrastructure and to bring about the cities we want and need for the future. Across the industry, there are many excellent projects and initiatives coming from many outstanding firms, however at the same time we face many challenges in fulfilling our responsibility to the Australian community. It so happens

We must overcome the challenges the built and natural environment industry faces in order to be considered ‘excellent’ right across the board. Some of the issues we face include finding the best way to fund infrastructure, planning for the future, ensuring productivity in construction, addressing housing affordability issues, dealing with the level of adversarial contractual activity, barriers to innovation, gender imbalance in our workforce, and the list goes on. These issues are all bigger than any single part of the industry. They require sustained and collaborative effort from government, planners, designers, funders, developers, contractors—indeed the entire industry. It is possible to uphold the notion that professional consultants demonstrate outstanding excellence across all areas; however this would require us to confine our view and not accept the role we play in the bigger picture. Whilst there is no doubt that there are many outstanding firms within the Consult Australia membership, it must be recognised that there are many challenges that lie between us and a time when our industry can be said to be servicing the community to its full potential. These challenges are beyond the means of any individual firm, but they are not beyond the collaborative desire for change that exists within our industry and within the membership of Consult Australia. Throughout 2013 Consult Australia has continued working to achieve a better operating environment for our members, and in doing so, supported excellence across the broader industry. On the following pages we

celebrate the outstanding achievements of many of our firms and the professionals in it. I look forward to seeing this excellent standard continue; but it will be sitting in a different position. This month brings to an end my term as Consult Australia President and Chair. It has been an absolute pleasure to serve the membership and has been an experience that has enriched my life and brought me into contact with many wonderful, generous and dedicated people. I’d like to thank the Board, who I’ve thoroughly enjoyed working with and have shown me great support, as well as the many members who get involved in roundtables, Committees, congress and task groups and contribute so much to the Association. Thank you to the CEO and all the national and state staff who are committed to Consult Australia and have made my role not just easy but an absolute pleasure. There remains a lot of unfinished work to be done as we strive to become the Association of choice, and I’m pleased to be handing over to a new President, with a refreshed Board and a skilled and experienced CEO, who together will bring success to Consult Australia and facilitate a prosperous industry.

Jamie Shelton Consult Australia

What’s happening at Consult Australia

Consulting Matters

From the CEO I was very honoured and proud to represent Australian consulting firms at the International Federation of Consulting Engineers (FIDIC) Centenary Awards which were celebrated at the FIDIC gala dinner in Barcelona on 16 September 2013.

Awards season is upon us once again! The end of the year always presents itself as an opportunity to reflect on the year that has been and celebrate success. Some of this is recognised formally—through for example Consult Australia’s Awards for Excellence (covered in depth later in this issue of Consulting Matters) or the FIDIC Centenary Awards, discussed below. As we reflect on the activity of a whole year, however, there are so many small ‘wins’ that we sometimes forget to formally celebrate… and now is a good time to do just that! I was very honoured and proud to represent Australian consulting firms at the International Federation of Consulting Engineers (FIDIC) Centenary Awards which were celebrated at the FIDIC gala dinner in Barcelona on 16 September 2013. FIDIC awarded Trophies of Excellence to projects and individuals that made a significant contribution to the industry over the last 100 years. In a pool of stellar projects (over 120 nominations were received), Australia won two major Awards, presented on the night by FIDIC President, Geoff French. These were an Award of Excellence for Major Building Projects presented to Australia and Arup for the Sydney Opera House, and an Award of Excellence for Major Civil Engineering Projects presented to Australia and Hyder Consulting for the Sydney Harbour Bridge. These two iconic projects not only demonstrate technical excellence and vision, but have put Australia on the world stage, and I congratulate both firms involved. We have published fascinating case studies on these two projects on pages 88-92 of this edition of Consulting Matters. I also congratulate not only those who show up to collect the gongs at our own Awards,

but all those who contribute to the success of these projects including the marketing teams and individuals who ensure they are properly recognised and celebrated. It is an important task for our industry to contribute to any avenues we can in order to highlight the excellence and importance of our work to our clients, sector and the broader community. On that note, I encourage all readers to note some of our fantastic policy wins over the last year (you can read about them on pages 10-12). These wins, and the ongoing efforts to secure them, make both an individual and a cumulative impact on the operating environment for our member firms, which is of course our key purpose at Consult Australia. Reflecting on the year, I am especially proud that we had a significant voice and role to play in a Federal Election campaign where a focus on both business and infrastructure were seen by both major parties as the key to not just electoral success, but the future prosperity of the country. I would also like to take this end of year opportunity to make a few thanks on behalf of Consult Australia. Firstly, I would like to say a massive thank you to our dedicated staff, who continue to go ‘above and beyond’ in service of our members. Your professionalism, dedication and energy are both acknowledged and applauded. Finally, I want to recognise the contribution of our Board of Directors, especially our outgoing Directors and in particular, our outgoing President, Jamie Shelton. This group have steered the organisation diligently through some of the toughest times in the industry’s (and thus Consult Australia’s) history, on a volunteer basis, and have done so on top of managing matters in their own firms in difficult conditions. Your vision, steadiness

and wisdom have been invaluable, and you are a credit to yourselves, your companies and your industry. I’m sure all our members will join me in extending to you our warmest and most sincere thanks for your time, effort and dedication.

Megan Motto Consult Australia

Consulting Matters

What’s happening at Consult Australia

Consult Australia Staff Appointments Alexia Lidas—NSW State Manager For the past year Alexia has been managing Consult Australia’s National Professional Development Program. In September she moved into the role of NSW State Manager. Alexia has a strong background working in media and marketing and has previously worked in membership and advocacy-based associations. Alexia is excited about the opportunity to work locally and is looking forward to getting to know the member firms in NSW. She is aiming to meet all of the NSW member firm State Managers in the near future.

Ezra Atik—National Manager – Professional Development Consult Australia has recently welcomed Ezra Atik into the role of National Manager - Professional Development. Ezra will be responsible for the overall strategy and delivery of Consult Australia’s education and training offer, including the development, marketing, budget and execution of all national education programs. With a Bachelor of Communications and currently finalising her postgraduate studies in law at UTS, Ezra brings strong business acumen and experience driving the strategic direction of professional development portfolios.

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Whatâ&#x20AC;&#x2122;s happening at Consult Australia

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2013

WINS

FEDERAL ELECTION 2013 • Campaigned throughout 2013 advocating those key recommendations reflected in our 2013 Federal Election Platform. Key meetings were held across both sides of Parliament establishing a strong bi-partisan understanding of our policy priorities in advance of the change in Government in September. Ongoing discussions with the new Government continue to advance our interests with a range of new inquiries and policy announcements to be progressed in the year ahead.

BEST PRACTICE PROCUREMENT AND FAIRER CONTRACTS Campaigning for fair allocation of risk between contracting parties, standard contract terms and liability reform at all levels of government: • Successfully advocated for a change to South Australian Government policy on limiting liability, with agreement that the Guidelines will be re-written to allow for a limit of liability included on smaller value contracts. *see page 12 for more detail • The Western Australian Department of Finance’s Office of Building Management and Works (BMW) has announced it will no longer contract out of proportionate liability in its head agreements with consultants. • In response to engagement with the Office of the Industry Advocate in South Australia, Consult Australia was invited to participate in an informal expert group assisting them in developing recommendations about reforms to government procurement processes and practices in South Australia. The invitation follows successful engagement with the Industry Advocate to discuss the handling of risk and liability in government contracts as well as a range of other issues.

• Met with the leadership of the ACT Public Service to discuss procurement policy and practice, and to improve contract terms and conditions for the future. • One of only two industry representatives on the NSW Department of Finance and Services Policy and Industry Advisory Committee negotiating a new standard contract for consultants in NSW with representatives from over 12 NSW Government departments and agencies. • Met with and made representations to a wide range of local, state and federal government agencies to discuss issues arising from their contracting practices.

SAFER, SUSTAINABLE AND MORE PRODUCTIVE WORKPLACES Improving access to skilled workers against identified shortages: • Together with partners in the Scrap The Cap Alliance, secured federal government commitment to not proceed with the cap on personal tax deductions for self-education expenses. *see page 12 for more detail • Retained a Department of Immigration and Border Protection Industry Outreach Officer to provide migration advice exclusively to member companies. • Generated significant political, media and public awareness of the impact of Government changes to 457 visas on the consulting industry. • Met with the office of the Assistant Minister for Immigration and Border Protection, Senator Michaelia Cash to highlight the impact of new Labour Market Testing (LMT) requirements on employers of engineers, and provide legislative options that will limit the impact of significant unintended consequences associated with LMT.

• Advocacy across the political spectrum, including with the offices of the Minister for Immigration and Citizenship, Minister for Employment and Workplace Relations, and Shadow Minister for Immigration and Citizenship. Supporting national harmonisation of Workplace Health and Safety (WHS) legislation and developing guidance for firms complying with a changing regulatory environment: • Met with the South Australian Department of Planning, Transport and Infrastructure to develop WHS guidelines for all stakeholders involved in construction work on their projects. •T ogether with other business groups, have been an active participant in the working group that has assisted Beyond Blue in their development of resources to assist businesses address mental health issues in the workplace. Facilitating a more diverse workforce, with ensuing productivity benefits across the industry: •A growing number of CEOs (13) of Consult Australia member firms have signed the Charter of the Consult Australia Champions of Change, committing to actively advance equality across their businesses and to act as industry advocates for diversity. • Demonstrated industry leadership with the release of the biennial workforce diversity survey report, including recommendations for action. • Advocacy across the political spectrum, including with the offices of the Prime Minister, Minister for the Status of Women, Minister for Early Childhood and Childcare, Shadow Parliamentary Secretary for the Status of Women, Shadow Parliamentary Secretary for Supporting Families, and the Shadow Minister for Childcare and Early Childhood. •M et with the office of NSW Minister for Women, Pru Goward MP to highlight the need for Government initiatives that advance gender diversity to look beyond the trades as ‘non traditional’ careers for women, and consider the importance of women to the advanced services sector.

BETTER URBAN ENVIRONMENTS & INFRASTRUCTURE INVESTMENT Sharing our firms’ expertise to deliver more evidence-based public policy outcomes; supporting investment in infrastructure providing more productive, liveable and sustainable urban environments: • Following ongoing work and advocacy supporting value capture, Consult Australia collaborated with Sinclair Knight Merz (SKM) to publish Capturing Value—considering further opportunities and challenges to advancing value capture mechanisms to support infrastructure delivery across Australia. • In light of the challenges currently facing industry in different states, South Australia, Queensland and New South Wales Divisions undertook targeted surveys to collect data on staff redundancies and movement and key issues arising. These surveys provided a powerful platform for ongoing statebased advocacy highlighting the current state of the industry and opportunities for reform. • Following this survey, South Australian members met with the Deputy State Liberal Leader and Shadow Minister for Transport and Infrastructure, Vickie Chapman MP to discuss the Opposition’s vision for the future of South Australia, as we approach the eve of an election in South Australia. • Ongoing discussions with the Leader of the Opposition Daniel Andrews MP and Victorian Shadow Minister for Roads, Tim Pallas MP seeking to progress a more sophisticated debate about the future of infrastructure funding and delivery across Victoria. • Reflecting the Association’s increasing profile and increased advocacy, we developed position papers in relation to two major nation building projects: High Speed Rail and a Second Sydney Airport. We now have formally joined the Western Sydney Airport

Alliance—a union of business, unions, local government, interest and community groups that support the economic, jobs and infrastructure stimulus of a major airport at Badgerys Creek. • Through national and state based advocacy, Consult Australia continued to secure media coverage on the infrastructure pipeline and infrastructure funding and financing including ABC’s Business Today, The Business, ABC News, BRW and major state newspapers. Advocacy continued with state events including a joint event with the Transport Reform Network at which Infrastructure Australia Chairman, Sir Rod Eddington was keynote. • Supported advocacy across jurisdictions by the Australian Sustainable Built Environment Council (ASBEC) for a Policy Framework for Climate Change Adaptation in the Built Environment and met with Queensland Minister for Environment and Heritage Protection.

INDUSTRY INNOVATION, GROWTH & EXCELLENCE Showcase industry excellence, lead innovation and the adoption of new technologies such as Building Information Modelling (BIM) and Integrated Project Delivery (IPD); delivering a more competitive industry in the longer term: • In recognition of increasing reliance of industry on BIM and IPD, Consult Australia established a BIM/IPD Roundtable to address the range of issues currently facing member firms, including: training, procurement, legal, intellectual property and model ownership. • Established a formal partnership with Collaborate ANZ to remove the misconception that the initiatives were in competition with each other and to

work together as needed where there are common goals. •C onsult Australia and Collaborate ANZ were successful in securing a private meeting with Head of BIM Implementation for the UK Cabinet office, David Philp which provided insight into the challenges the UK faced implementing their mandate, along with the benefits consulting firms are now experiencing including significant export opportunities. • I n conjunction with the Australian Services Roundtable (ASR), of which Consult Australia is a member, we have commenced work on the development of a series of Digital Business Kit deliverables to help firms use the NBN to drive productivity.

STRONGER, MORE COLLABORATIVE BUSINESS RELATIONSHIPS Fostering more productive working relationships between consulting firms and private and public sector clients across jurisdictions: • Advocacy across the political spectrum to profile the role of consulting firms in the resources industry, including with the offices of the Minister for Resources and Energy and Shadow Minister for Energy and Resources. • Achieved NT government commitment to review registration fees for micro engineering firms. *see page 12 for more detail • Achieved clarification of the application of the Rail Industry Worker Program to limit the impact on consulting firms to include only managers and those with sign-off authority.

In detail... LIMITING LIABILITY IN SOUTH AUSTRALIA An issue that our industry has faced for some years when contracting with the South Australian Government is the Treasury Guidelines on Limiting Liability that applies to all public sector agencies in that state. These Guidelines set out that liability cannot be limited in certain situations, and put forward risk assessment guidelines for those situations where liability can be limited. In previous analysis of the Guidelines, Consult Australia had considered them as offering both useful opportunities in terms of improved risk management behaviour, but also a roadblock where agencies were unable to limit liability under their contracts. Following a meeting with the South Australian Treasurer’s office, Consult Australia commissioned the development of a legal opinion regarding the limitation of liability by leading barrister, Tony Horan (who also conducts Consult Australia’s Contracts for Consultants course). The opinion sets out the benefits to a client of limiting liability in the contract, with particular reference to the South Australian Treasury Guidelines. Another important development has been the creation by the South Australian Government of the Office of the Industry Participation Advocate, tasked with making it easier for business to work with South Australian public sector agencies. Consult Australia has worked closely with the new Office to explain the benefits to government and our industry of better addressing liability issues, and earlier this year had the opportunity to present the legal opinion to the Industry Participation Advocate. Over the course of the past year these representations have now yielded their first positive results, with recent correspondence from the Industry Participation Advocate informing us that the Treasury Guidelines will shortly be updated to include a limit on liability for smaller value contracts.

NORTHERN TERRITORY REGISTRATION FOR ENGINEERS In a win for micro businesses operating in the Northern Territory, Consult Australia has secured a commitment by the Northern Territory (NT) Government to review engineering registration fees. The issue was first raised by a small Queensland-based member firm that also operates in the Territory. Under current legislation, engineers and engineering companies must be registered to provide residential building work. A perverse outcome of this legislation is that owner/ operators must be registered twice and pay two fees: once as an individual and once as a company. Consult Australia raised this with the Director of Building Advisory Services within the Department of Lands, Planning and the Environment, who committed to put forward reform options to the NT Government in the first half of 2014. This is an impressive response and will result in meaningful red tape reductions in the Top End. Member firms can contribute to the review process by contacting SA & NT State Manager, Jan Irvine.

Consult Australia commissioned the development of a legal opinion regarding the limitation of liability by leading barrister, Tony Horan (who also conducts Consult Australia’s Contracts for Consultants course). The opinion sets out the benefits to a client of limiting liability in the contract, with particular reference to the South Australian Treasury Guidelines.

THE CAP IS SCRAPPED Due largely to pressure from Consult Australia and its partners in the Scrap The Cap Alliance, the cap on personal tax deductions for selfeducation expenses has been abolished. The cap was introduced by the previous Labor government for commencement in July 2015. It would have seen tax deductions for self-education expenses capped at $2,000 per year. Though intended to clamp down on abuse of the system, the reform had wide ranging impacts that would have led to a dumbing-down of the Australian workforce. This is a particularly important win for consultants in rural and regional Australia, who are often forced to travel to their state capitals to undertake training and quickly incur course and travel costs that exceed $2,000 each year. Parents returning to the workforce also often rely on the tax deduction to make workforce re-entry training affordable. Consult Australia is pleased that the Government has listened to business and looks forward to continued genuine consultation on this and all issues into the future.

What’s happening at Consult Australia Consulting Matters

Consult Australia and the Federal Election As the recent Federal Election was called, Consult Australia launched an election manifesto of our own: a statement of policy initiatives across the range of issues that concern our industry. Our policies varied from improvements to procurement, liability and decision-making on infrastructure policy, through to initiatives to support childcare and skills in the workplace. To accompany our policy platform, Consult Australia sent the major political parties a survey to gauge their response, and to seek their commitment for support to address each issue in question over the next term of government. Responses were received from both Labor and the Coalition, and both are a useful guidance to understand the planned direction of each side of politics. When analysing the responses, one of the most striking findings is that a clear focus of both responses is on assistance for small business, predominantly in the form of lifting the regulatory burden on them. The Coalition listed as their plan to help small business, actions including the delay of the increase in the rate of superannuation from 9 per cent to 12 per cent by two years, cutting the rate of company tax to 28.5 per cent, using the Australian Tax Office to relieve small business of the burden of processing superannuation payments, and a requirement by the Accounting Standards Board to justify any new red tape requirements that go beyond international standards. Labor similarly provided a lengthy response on the issue of assisting small business, with their focus on streamlining the administration of superannuation, paid parental leave, and GST payments, with a proposal to move from lodging quarterly returns to one annual GST return. Labor also proposed creating tax deductions on office equipment or assets up to the value of $10,000, with small businesses whose turnover is under $2 million per annum able to claim the deduction up front to improve their cash flow. Consult Australia was pleased to see measures proposed by both sides of politics to improve the lot of small business. However, some of the responses to our core concerns of procurement and infrastructure development highlight the work we need to do with government to improve policy and practice in these areas. In their reply to our question on how each party would improve public sector procurement, the Coalition responded in terms of increasing opportunities for small business to tender for and win government work, while Labor focused on its record—having established the Procurement Consultative Committee, and offered to consider our proposal for a Centre for Procurement Excellence. Both parties also highlighted the need for business contracting with government to be paid on time. These responses highlight a fundamental challenge that we face in securing meaningful procurement reform, including contract and liability issues: namely, the level of engagement and indeed understanding of procurement policy at the political level of government is not where we would like it to be. Neither party mentioned a fair allocation of risk and reward through the contract, ensuring project risks were covered by insurance, or driving behaviour that would lead to better project outcomes. This is not to say that

Neither party mentioned a fair allocation of risk and reward through the contract, ensuring project risks were covered by insurance, or driving behaviour that would lead to better project outcomes. either respondent wouldn’t be supportive if such a proposal was put in front of them, but rather highlights the disengagement between ministers and their staff and the policy settings and practices used by the agencies that report to them. In response to our questions on infrastructure and cities policy, the Coalition spoke of strengthening the role of Infrastructure Australia and requiring them to provide justification for their decisions, while projects worth more than $200 million would need to be subject to cost-benefit analysis. Labor, in their response, focused more on cities policy, including their promise to create a Minister for Cities and expand the role of the Major Cities Unit within the Department of Infrastructure. While we are pleased to see both parties commit to strengthening Infrastructure Australia and the Major Cities Unit, the platitudes put forward are meaningless if not backed by spending and a commitment to proceed with particular projects. It is noteworthy that neither party addressed our question regarding infrastructure finance. Funding new infrastructure looms large as a challenge for the new Government, as well as future governments. Overall, the survey was a useful opportunity to take the temperature of the major political parties on a range of issues relevant to our industry. The responses have indicated that our political leadership has considered and addressed many important topics within our policy framework, such as flexible childcare arrangements and assisting small business. However, the responses also indicate there are policy issues of importance to us where the new Government and Opposition have yet to fully consider their positions. Our challenge as your industry association is to ensure that Government, Opposition, and the full range of minor parties and independents hear our voice, and consider our proposals. It’s an exciting opportunity, and one that Consult Australia and the broader consulting industry should relish. Robin Schuck Consult Australia

See the Advocacy page of the Consult Australia website for the full list of survey questions and the responses received.

Consulting Matters

Time to get smarter with infrastructure funding CONSULT AUSTRALIA IN CONJUNCTION WITH MEMBER FIRM SINCLAIR KNIGHT MERZ HAS BEEN PROUD TO RELEASE OUR LATEST THOUGHT-LEADERSHIP REPORT: CAPTURING VALUE: REALISING NEW FUNDING FOR INFRASTRUCTURE AND URBAN RENEWAL.

The return on investment from our highways, rail and urban public transport infrastructure is clear. With estimates suggesting some $2.85 for every $1 invested, that alone is a persuasive indicator of the potential for infrastructure to drive productivity. But with estimates of Australia’s infrastructure deficit ranging from $300-$700 billion, the challenge of releasing new funds for infrastructure delivery is now acute. The simple fact is that there is just not enough funding available under current Commonwealth and state government arrangements. In this context, the potential for value capture mechanisms to contribute to Australia’s urban renewal and public transport funding shortfall is enormous. Although well established internationally, in Australia and New Zealand value capture is not well understood, with consequent missed opportunities to realise new investment. Capturing Value sets out the ten success factors for value capture in Australia establishing a new reference point for a whole-ofgovernment approach that realises new funding and better value for our investments in infrastructure and urban renewal. WHAT IS VALUE CAPTURE? Value capture refers to infrastructure and urban renewal funding mechanisms closely tied to increases in public tax revenues from private property. Value capture establishes a revenue benchmark that can be monitored against planned investments. Revenues above the benchmark are used to repay bonds or loans which fund projects, while revenues below the benchmark continue to flow to taxing authorities as usual. Typically implemented with a long pay-back period (e.g. 20-25 years) revenue streams tapped through value capture include: • property values increased via infrastructure investment, land rezoning and density controls • increases in property transfer taxes, local government rates, business rates, land taxes and related local government charges

• sale of additional development rights over and above those permitted under existing zoning, also called sale of ‘bonus floorspace’ • sale of under-utilised government land beside public transport corridors and stations • sale of air rights over public land and transport corridors and stations.

realising new fu for infrastructu fully mature program, which tend to occur at its back end, can be captured to underwrite financing. 2. Embrace genuine and robust stakeholder engagement

Capt

Value capture programs provide an equitable means of reinvesting a portion of the benefits created by urban renewal and transport infrastructure programs. TEN SUCCESS FACTORS TO CAPTURING VALUE

val

Perhaps the biggest obstacle to value capture in Australia today is institutional resistance. But with a focus on the value created by a public investment as opposed to the cost of the investment, value capture represents an attractive tool to communicate the benefits of new infrastructure and generate constituent support. But this is just one element required for success. To support the implementation of value capture across Australia Capturing Value urges all governments to closely consider these ten success factors: 1. Develop a comprehensive, long-term plan

Stakeholder engagement has evolved into an established and essential component of public transport and urban planning programs at the national, state and local levels in Australia. Genuine and robust engagement will help ensure better project outcomes and reduce risk and delays.

Value capture programs typically rely on the successful implementation of a number of mutually supportive and coordinated public and private investments to lift economic activity over a sustained period. These strategies also need to extend 20 or more years into the future so that the benefits of a

3. Carefully select the district for improvement

In setting the boundaries of an improvement district, consideration needs to be given to: the nature and cost of physical improvements needed to create value uplift; catalytic projects that are likely to kick-start development activity; and the attitudes of business and residential property owners to the proposed activities. 4. Create a shared vision

A widely scoped stakeholder engagement program involving all stakeholders (including the media) will assist in getting the right message out and building alliances. It is far better to have robust debate and informed stakeholders than an information vacuum and misinformation. 5. Establish a clear and balanced governance framework

Government agencies and commercial interests invest hard capital to create value, but as a form of public-private partnership operating within a democratically elected system of government, the success of

Support from other interests, such as neighbourhood associations, educational institutions, local health and social service agencies and various other special interest groups needs to be facilitated through an appropriate governance framework.

What’s happening at Consult Australia Consulting Matters

on any limitations that may exist on land acquired through compulsory acquisition.

HOW DOES VALUE CAPTURE WORK?

10. Build trust as a core value Trust is an overriding value in public-private partnerships. Building and maintaining trust can be established through small efforts that evolve into larger efforts but require continual effort and commitment to be maintained. WHO BENEFITS? The most effective urban renewal programs use value capture to bridge the gap in the timing between investments in public infrastructure, and the flow of tax revenue resulting from those investments. They supplement, but do not replace existing funding sources. these programs often relies heavily on the non-financial contributions. Support from other interests, such as neighbourhood associations, educational institutions, local health and social service agencies and various other special interest groups needs to be facilitated through an appropriate governance framework. 6. Understand the risks and rewards for all stakeholders The high profile failures of several large public-private partnerships in Australia, including the Cross City Tunnel ($700 million) and Lane Cove Tunnel ($1.1 billion) in Sydney and the Clem7 ($3.2 billion) and Airport Link ($4.8 billion) in Brisbane, highlight the need for all parties to understand the risks and rewards of these models. Such failures cost private sector investors billions of dollars, but the general public also loses because future opportunities to involve much-needed private sector investments will be more costly and harder to secure. how does Value Capture worK? 7. Use incentives to attract private investment and better design Local government planning and development controls are increasingly turning to incentives rather than prescriptive standards to achieve better development outcomes and reduce costs. 48,000

our industrY

firms

240,000 employees

Tailored precinct zoning and development controls, such as Planned Unit $40 Developments billion billion in revenue $1.4 (PUD) and Transferable Development in exports Rights (TDR), are often required to achieve higher density residential and commercial development while maintaining public standards for open space. Consult Australia is the industry association that represents the business interests of consulting firms operating in the built and natural environment across Australia. Our member firms’ services include, but are not limited to: design; architecture; technology; engineering; surveying; legal; and management solutions.

Contact:

Consult australia

Jonathan Cartledge, Director of Policy Level 6, 50 Clarence Street Sydney NSW 2000 P. 02 9922 4711 F. 02 9957 2484 E. info@consultaustralia.com.au W. www.consultaustralia.com.au

8. Secure consistent and coordinated leadership While political leadership is important, sustained leadership that transcends administrative and political change, and

maintains a consistent vision for the project is essential given the long-term nature of urban renewal and public transport investments. 9. Secure the ability to influence outcomes Planning controls and compulsory acquisition powers need to provide urban renewal authorities with the ability to undertake widespread urban renewal programs where necessary or desirable in the broader public interest. The ability to repackage and sell land varies by jurisdiction, so it is important to obtain current and accurate legal advice

Numerous studies demonstrate that wellplanned urban renewal programs which integrate land use and transport infrastructure produce significant increases in land values. Improved access to jobs and housing, more efficient and productive uses of land and infrastructure, and the ability of employers and employees to specialise and produce high-value services and products. Value capture programs provide an equitable means of reinvesting a portion of the benefits created by urban renewal and transport infrastructure programs.

Capturing Value is published by Consult Australia and Sinclair Knight Merz (SKM); is available to download on the Consult Australia website and was authored by: Joe Langley, Senior Executive – Urban Planning and Development at Sinclair Knight Merz (SKM)

realising new funding for infrastructure and urban renewal

Capturing

value The return on investment from our highways, rail and urban public transport infrastructure is clear. With estimates suggesting some $2.85 for every $1 invested, that alone is a persuasive indicator of the potential for infrastructure to drive productivity. But with estimates of Australia’s infrastructure deficit ranging from $300-$700 billion, the challenge of releasing new funds for infrastructure delivery is now acute. The simple fact is that there is just not enough funding available under current Commonwealth and state government arrangements. In this context, the potential for value capture mechanisms to contribute to Australia’s urban renewal and public transport funding shortfall is enormous.

Although well established internationally, in Australia and New Zealand value capture is not well understood with consequent missed opportunities to realise new investment.

Capturing Value sets out the ten suCCess faCtors for Value Capture in australia; establishing a new referenCe point for a whole of goVernment approaCh that realises new funding and better Value for our inVestments in infrastruCture and urban renewal.

Since joining SKM in 2003 Joe has served as the firm’s practice leader and section manager for its urban planning and infrastructure teams and has led a wide range of strategic planning and urban development projects and proposals throughout Australia and New Zealand. Joe has led SKM’s investigations and advocacy of innovative urban renewal and transport infrastructure funding options in Australia and New Zealand since 2007. Prior to joining SKM, Joe worked in property development, investment and management in the US states of Colorado and Virginia. He holds a Master of City Planning degree from the Georgia Institute of Technology in Atlanta, Georgia.

Consulting Matters What’s happening at Consult Australia

International Excellence CONSULT AUSTRALIA MEMBER FIRMS RECENTLY WELCOMED SEVEN YOUNG PROFESSIONAL ENGINEERS FROM JAPAN AS PART OF THE CONSULT AUSTRALIA/ ASSOCIATION OF JAPANESE CONSULTING ENGINEER (AJCE) YOUNG PROFESSIONAL EXCHANGE PROGRAM.

In a globalised and interconnected world, businesses are increasingly expected to operate across national borders, and work closely with firms and professionals from a wide range of backgrounds and with very different cultures. For consulting firms where people are capital, the ability to navigate and engage with various corporate, industry and professional cultures is paramount to success. Consider the growing markets in Asia, our diverse and multicultural workforces and the increasing occurrence of projects that draw on skills and knowledge from all corners of the earth. When you reflect on these factors and the potential impact they have, it makes social, cultural, business and economic sense to develop strong, healthy international networks. Professional exchange programs provide a genuine means for participants to have a crosscultural experience, be trained in technical and operational aspects of foreign firms, and have the opportunity to learn from different cultures. By supporting professionals—either by sending or hosting staff—firms gain a competitive advantage as they develop longterm, healthy international relationships, and retain professionals with greater knowledge, skills and likely loyalty as well. Consult Australia’s Young Professional Exchange Program (YPEP) is an annual exchange run between Consult Australia and the Association of Japanese Consulting Engineers (AJCE). It began in 1996 a year after a Memorandum of Understanding was signed between the two associations. Participating young professionals undertake a three-week training program that includes technical, social and cultural activities. In 2013, seven Japanese young professionals were hosted in seven Consult Australia member offices across Australia—many of these firms participating for a second or third time. Reflecting on the value of YPEP, the Japanese trainees and those Consult Australia firms involved identified a compelling and comprehensive list of reasons to participate. International opportunities through joint ventures between the Japanese trainee’s

firm and Australian firms became an even greater possibility—strengthened by ongoing dialogue and engagement between the organisations. Furthermore, the relationships developed between individuals have enabled the sharing of informal advice, innovations, experiences and day-to-day processes— something competing firms or consultants operating in the same region would not do. Beyond the project and more competitive advantages—the insight into the culture of other firms, and the productivity drivers within those firms was cited as one of the many positive learning experiences. For Australian workers, knowledge of the Japanese working culture imbued a sense of appreciation for the conditions, allowances and flexibility their current employers offer! The visiting young professionals were motivated to share the benefits they had seen at play of Activity Based Working, flexibility in the workplace, and the

development of a sound, collaborative and friendly corporate culture. Consulting excellence is about much more than technical ability and efficiency; it is as much defined by the ability to develop and maintain productive relationships. Enabling an environment where the future leaders of the industry are supported in their learning, and who are well-connected and well-resourced can only reap significant benefits for firms. We thank all those companies who participated in YPEP 2013 and we look forward to continuing a strong relationship between our two countries and those participating firms and professionals in the years ahead. Gillian O’Young Consult Australia

What’s happening at Consult Australia Consulting Matters

ContraCtS for ConSultantS CPD Do you know what you’re signing? You could be exposing yourself and your firm to avoidable risk. We thank the following Consult Australia member firms who hosted a Japanese young professional in YPEP 2013: • AECOM

• Aurecon

• Costin Roe

• MLEI Consulting Engineers

• Norman Disney & Young

• Northrop

• URS

Attend this course to learn about: • Contract information • Contract terms • Contracting issues • Liability and relief • Construction contracts & consultancy agreements • Onerous contract terms • Professional Indemnity (PI) Insurance • Ending a contract • Dispute resolution

With thanks also to the AJCE and participating firms:

Book now

• Nippon Koei

For more course information and dates contact Ezra Atik on (02) 8252 6719 or education@consultaustralia.com.au

• P.T. Morimura & Associates • Nihon Suido Consultants • CTI Engineering

$2,645 for Consult Australia members $2,940 for non members

• Chodai

Group booking and in-house discounts available

• Kokusai Kogyo • Oriental Consultants

(All prices include GST)

Consulting Matters What’s happening at Consult Australia

WA Policy Update Built Environment Design Professionals (BEDP): Throughout 2013 the BEDP Committee—on which Consult Australia is strongly represented—has continued to meet and liaise regularly with the office of Building Management and Works (BMW) in relation to a number of issues affecting the consulting industry. Josephine Howlett State Manager – WA Phone: (08) 9324 3383

Address: Old Swan Brewery 173 Mounts Bay Road Perth WA 6000

Email: josephine@consultaustralia.com.au

• As reported in the previous edition of Consulting Matters, we are pleased to report that the Minister for Finance has ordered the Office of Building Management and Works (BMW) to not contract out of proportionate liability. • After several rounds of discussions, meetings and submissions on a proposed framework for setting liability caps, a workshop was held with BMW and RiskCover to assess risks associated with each key aspect of a typical project. While the results have not been conclusive to date, it is encouraging that there is an apparent will to continue to work together to achieve a mutually acceptable model. • BEDP and Consult Australia have maintained the position that all consultants should be engaged directly by the client, thus avoiding many of the commercial and legal liability concerns that arise for the consulting industry and allowing a direct responsibility connection between each consultant and the client. This topic will become a focus once the above two priority points are resolved. • BMW has issued several pages of amendments to AS4122-2010. The position that BEDP and Consult Australia has taken is that AS4122-2010 should be used in an unamended form to ensure a fair and balanced approach. This topic will be also be a focus once the above two points are resolved. Meeting with WARCMIAG: Consult Australia continues to participate in Main Roads’ Western Australian Road

Luncheon with Jeff Speck: (Left-right) Steve Woodland (Cox Howlett & Bailey Woodland), Megan Motto (Consult Australia), Greg Howlett (Cox Howlett & Bailey Woodland) and Jeff Speck

Construction and Maintenance Industry Advisory Group (WARCMIAG), with the last meeting held in early September. Key points included: • Main Roads has developed a portal (known as My Account) which contractors can use to gain access to information relating to Main Roads projects. • Main Roads advised there was a large program of works as a result of the Nation Building Program including Swan Valley Bypass, Great Northern Highway Upgrade (GNH), High Street Fremantle, North West Coastal Highway and three grade separated interchanges on Tonkin Highway. • A number of Consult Australia WA Committee representatives attended an information session at Main Roads in late September 2013 on the project delivery model proposed for the upgrade of the Great Northern Highway (GNH) Muchea to Wubin. The proposal involves delivery of the project by an integrated team comprising Main Roads and industry from concept to final delivery and handover. The Consult Australia representatives also participated in the Main Roads Gateway Review in mid October 2013 for the same project to assist in determining its readiness for market. WA Local Government Association: Consult Australia has continued its very close relationship with the WA Local Government Association (WALGA) over their contract terms and conditions. This relationship followed on from our very successful initiative of a tri-partied agreement between WALGA, the Institute of Public Works Engineering Australia (WA) and Consult Australia to use the Australian Standard General Conditions of Contract for Consultants AS4122 unaltered. Through ongoing consultation with industry, WALGA has developed a new Panel Contact for the provision of engineering services to local government. Whilst there has been some robust debate about commissions to WALGA, the terms and conditions of engagement

What’s happening at Consult Australia Consulting Matters

with individual local authorities maintains the previous agreement. Consult Australia and WALGA continue to liaise closely over consulting service provision to local government. Water Corporation liaison: Consult Australia has been invited to continue its involvement with the Water Corporation and other industry bodies in the Urban Development Advisory Committee. This Committee advises a senior executive group of the Water Corporation on the performance of the service delivery of the Water Corporation infrastructure and policies in the urban development field. The Committee recently held its 100th meeting, which was attended by representatives of the Board of the Water Corporation. At this meeting the industry groups were able to reinforce the need for the Board representatives to encourage other agencies to emulate such an interactive forum. BMW Engineering Services Panel: Consult Australia was asked to engage with BMW to assist with the establishment of the new Engineering Services Panel that will supersede the existing panel, which has now lapsed after having been in place for a number of years. A draft contract document was issued to Consult Australia and— following consultation with our members—we provided comments highlighting the various contractual clauses and issues of concern to our industry. Although not all of the comments were incorporated, Consult Australia was able to instigate change to some of the issues originally included in the document such as those pertaining to insurances, eligibility and other general matters.

WA Recent Events Consult Australia and the Association of Consulting Architects present a joint luncheon with Jeff Speck: On Tuesday, 15 October the WA Division welcomed 160 attendees at a joint luncheon with the Association of Consulting Architects (ACA) and guest speaker,

Latest FIDIC documents now on sale! This includes Consultant Agreements, Construction Contract, Contract Guides, Cost Estimates, Electrical & Mechanical Works, Turnkey Contracts, Professional Liability and Claims and many more.

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

Jeff Speck. Jeff Speck is a city planner and architectural designer who—through writing, lectures, and built work—advocates internationally for smart growth and sustainable design. At the event Jeff shared his vision for smart growth and sustainable design, and provided jargon-free insights into how ‘walkability’ can make cities thrive. Jeff’s presentation was followed by an open Q&A with the audience, facilitated by WA Business News’ Editor at Large, Mark Pownall.

WA Division Strategic partner:

Josephine Howlett State Manager – WA Phone: (08) 9324 3383

WA DIVISION Platinum Sponsors:

WA DIVISION Gold Sponsors:

Address: Old Swan Brewery 173 Mounts Bay Road Perth WA 6000

Email: josephine@consultaustralia.com.au

Consulting Matters What’s happening at Consult Australia

Alexia Lidas State Manager – NSW Phone: (02) 8252 6708 Adrress: L evel 6, 50 Clarence Street Sydney NSW 2000 Email: alexia@consultaustralia.com.au

NSW policy update

ACT Policy Update

Boardroom luncheon with Roads and Maritime Services (RMS) Chief Executive Officer, Peter Duncan: A boardroom luncheon was held with the CEO of Roads and Maritime Services, Peter Duncan and senior management from our membership on 2 October. The event was very successful with topics of frank and robust discussion, including: how the consulting profession can assist to deliver the NSW budget; things the consulting profession have done well and not so well; and how the consulting profession can assist RMS going forward. This luncheon kicks off a series, which aims to better engage our members with government and learn from them as a potential client.

Lessons Learnt Design Workshop: The Lessons Learnt Design Workshop was held earlier this year and welcomed those ACT Government Directorates who participate in procurement of Territory’s capital works program. Consult Australia attended on behalf of professional design service providers. A report from this workshop has been released and circulated to the ACT Division. From the workshop, five improvement opportunities were identified as a priority for immediate focus:

Western Sydney Airport Alliance: Consult Australia is a proud founding member of the Western Sydney Airport Alliance. The Alliance is comprised of members including the Sydney Business Chamber; NSW Business Chamber; Unions NSW; the Australian Workers Union (AWU); the Construction, Forestry, Mining and Energy Union (CFMEU); Western Sydney Community Forum; Regional Development Australia Sydney; and the Liverpool, Narellan and Campbelltown Chambers of Commerce. The Alliance is calling for a bipartisan agreement to proceed with Badgerys Creek as the commonsense site for a Western Sydney Airport. Consult Australia views the airport as a critical piece of infrastructure for the planning of the state’s future. The cost of inaction is immeasurable. This piece of infrastructure will provide local and broader support to the economy in a number of ways. For further information visit: www.westernsydneyairportalliance.com.au. NSW 2014 policy priorities workshop: The NSW Division held a policy workshop on 18 November, which followed on from the NSW Critical Impact Survey of June 2013. Key themes from this survey were selected to workshop at the event. These four areas were: • planning and developing the infrastructure pipeline

• introduction of consultant brief development checklists • reinstatement of pretender consultant checklists • early contractor involvement • consultant performance appraisal systems • budget assessment as a requirement of a consultant’s brief. Consult Australia will continue to work collaboratively with the ACT Government towards the implementation of the above recommendations through quarterly client/ consultant roundtable meetings.

ACT Recent Events Boardroom lunch: The ACT Division recently held an exclusive boardroom luncheon with Mr Shane Rattenbury MLA. Shane Rattenbury is the ACT Greens member for Molonglo and a Minister in the minority ACT Government. As the single Greens representative in Parliament, Shane holds the balance of power in the ACT’s 17 member Assembly and holds Ministerial responsibilities for portfolios including territory and municipal services, housing, corrections, Aboriginal and Torres Strait Islander affairs, and ageing. Discussion around the table touched on issues such as light rail, asset management, water sensitive urban design and the cost of upkeep and maintenance of capital works.

• releasing new funds for infrastructure investment • supporting best practice procurement • creating a better business environment. The outcomes from this workshop will be released in early 2014. NSW Division Strategic Partner:

ACT Upcoming Events 2014 boardroom lunch: The ACT Division will host an exclusive boardroom lunch with ACT Deputy Chief Minister, Mr Andrew Barr MLA early in the New Year. Further information will be circulated to members as it becomes available.

ACT Division Strategic partner:

NSW Division Bronze Sponsor:

What’s happening at Consult Australia Consulting Matters

QLD Policy Update Promoting excellence in the built environment: In late June we undertook the Queensland ‘Industry Critical Survey’; the results of which were published in August. Prior to publication the draft results were considered by a group of senior representatives from our member firms who identified appropriate recommendations to take back to government. Representatives from over 30 member firms contributed to the discussion, with many expressing concerns regarding the immediate and short-term forward outlook for their respective firms. Armed with ideas and potential solutions, the participants were thus productive in helping formulate the QLD Division’s new policy platform Promoting Excellence in the Built Environment. This platform along with the survey results have now been communicated to all levels of government. The key messages that the QLD Division will continue to focus on are planning and developing a stronger infrastructure pipeline, releasing new funds for infrastructure investment, supporting best practice procurement, and creating a better business environment. Department of Transport and Main Roads (TMR): Consult Australia’s QLD Division held a half-day workshop with a small group of Consult Australia members to work through the proposed changes to both the pre-qualification system and tender selection processes. We encourage members to continually provide us with any feedback they may have on these changes as they are implemented across the state. The QLD Division has a dedicated email listing for those interested in staying informed of our regular engagement with TMR. Simply contact QLD State Manager, Stacey Rawlings to be added. Use and review of Department of Housing and Public Works (HPW) contract (Version 4 July 2012): Member feedback has indicated that this contract is increasingly becoming the ‘go to’ contract for many tenders being released across government departments. A full member review of the terms and conditions has now been undertaken and feedback has been provided to both HPW and TMR. Follow-up meetings with both departments are scheduled to continue discussing appropriate contracts and contract conditions. Queensland Opposition: Deputy Opposition Leader, Tim Mulherin and Shadow Treasurer, Curtis Pitt have invited Consult Australia to participate in a small Economic Roundtable to assist with setting their future policy directions. Updates will be provided in future editions of Consulting Matters.

Delivering Queensland’s transport infrastructure: At this event TMR Director-General, Neil Scales provided an update on his vision for the Department going forward, noting that he welcomes the opportunity to engage with our members regularly. The QLD Division will look to invite him to provide another update to members within the next six months. QLD Division dinner: Held at the impressive Cloudland in Fortitude Valley, at this year’s dinner we were pleased to announce the winner of our ‘Write Yourself away with FutureNet’ essay competition. A shortlist of five finalists (from 23 entrants) attended on the night and were entertained by our keynote speaker, Dr Keith Suter who provided an informative and entertaining overview of the current economic conditions facing Queensland. We are pleased to announce that the winner of the 2013 competition is Catherine Morar from Renewable Energy Engineering. Catherine’s winning essay will be published in the autumn 2014 edition of Consulting Matters. Valuing Better Stakeholder Engagement: Consult Australia’s recent work on engagement—undertaken in conjunction with a number of member firms and in partnership with the International Association for Public Participation Australasia (IAP2)—has seen the release of our latest thought-leadership report, A Guide to Procuring Engagement Services. Now widely recognised as a critical ingredient for successful project delivery, private and public-sector requirements for engagement services are increasing and changing the landscape for consultants and contractors alike. The Consult Australia Guide will be rolled out at a series of launch events across jurisdictions in 2014. A joint Roundtable meeting of engagement professionals in Brisbane held with IAP2 has kicked off discussions progressing the use of the Guide in Queensland. Applying value capture to Queensland: This Wednesday, 4 December forum examined the potential use of value capture methods to contribute to Australia’s public transport funding shortfall. Obstacles and opportunities to this funding method were examined based upon recent pilot studies, government and private sector reports, and urban renewal and public transport projects proposed or under construction throughout the country.

QLD Upcoming Events The 2014 QLD Division calendar is now being planned. We look forward to seeing you at another round of exciting events next year. QLD Division Strategic partner:

Qld Recent Events Innovate, Internationalise or Die: If service providers are to survive and thrive in the current economic climate, they need to throw the net wider and look to overseas markets to grow their client base. Innovate, Internationalise or Die provided attendees with an overview of how to ‘go global’, with information and examples from both business specialists and successful exporters.

QLD Division platinum Sponsor:

Stacey Rawlings State Manager – QLD Phone: (07) 3020 3403

Address: Level 2, 143 Coronatin Drive Milton QLD 4064

Email: stacey@consultaustralia.com.au

Consulting Matters What’s happening at Consult Australia

VIC Policy Update Zeina Iesa State Manager – VIC & TAS Phone: (03) 8699 7700 Adrress: Level 6, 1 Southbank Boulevarde Soutbank VIC 3006 Email: zeina@consultaustralia.com.au

Innovate, Internationalise or Die provided the audience with an in-depth overview of how to ‘go global’.

Procurement, innovation and risk performance: Consult Australia’s VIC Division and VicRoads representatives recently held a workshop to progress discussions around procurement, innovation and risk performance feedback schemes. A follow-up meeting with senior transport managers from member firms will be held in early February 2014 with the main aim being to improve procurement processes in how designers are engaged in order to maximise value. The Consult Australia VicRoads Subcommittee is also involved in roundtable discussions to raise any further areas that can be improved between VicRoads and consultants. The roundtable has requested nominations from suitably qualified member firms and individuals to participate in a workshop to explore the possibility of working with VicRoads to deliver assessments of existing bridges for heavy load permits. The VIC Division looks forward to engaging member firms and providing them with the opportunity to become involved in our upcoming workshops. Promoting value capture with SKM and Joe Langley: Following our ongoing work and advocacy supporting value capture (included as a key recommendation in Transporting Australia’s Future and Tomorrow’s Cities Today and progressed through our state advocacy) we are pleased to have worked collaboratively with Sinclair Knight Merz (SKM) and Joe Langley to jointly publish Capturing Value. This detailed thought-leadership paper considers the opportunities and challenges to advance value capture mechanisms to support infrastructure delivery across Australia. This report was launched at our September luncheon with keynote speaker, Sir Rod Eddington.

VIC Recent Events Innovate, Internationalise or Die: The Export Council of Australia (ECA) in conjunction with Consult Australia and KPMG recently held a special event on expanding built environment business into overseas markets.

VIC Division strategic partner:

VIC Division platinum Sponsors:

VIC Division GOLD Sponsor:

building great consultants

Attendees heard from the following business specialists and shared in the experiences of successful exporters: • Hardcat Managing Director, Dan Drum • ThomsonAdsett Group Managing Director, Chris Straw • KPMG Private Enterprise Group Tax Partner, Simon Le Maistre. Meet the Client event: Growth Areas Authority (GAA) Chief Executive Officer, Peter Seamer hosted an interactive session on Thursday, 19 September on the role of GAA in delivering future government infrastructure. Peter spoke about his organisation’s current projects and their role in delivering and developing projects, and addressed what GAA looks for in a consultant and how to impress as a service provider. End of year function with AFL legend, Kevin Sheedy: On Wednesday, 4 December the VIC Division welcomed one of the Australian Football League’s most enduring figures, Kevin Sheedy. A player and coach over five decades, Kevin has an unsurpassed record of involvement in 1,000 games and eight premierships. Thank you to event sponsor ERM.

VIC Other news VIC Division Committee: We would like to take this opportunity to welcome our two newest Committee members: Hyder Business Director, Andrew Bethune and AECOM Team Leader, Brendan Morton. We wish Helana Wretham from AECOM all the best as she commences maternity leave. The VIC Division would like to welcome onboard our new gold sponsor, Easyconsult who are offering a new series of webinars to Consult Australia members.

What’s happening at Consult Australia Consulting Matters

Tas policy update Political engagement: The TAS Division recently met with Minister David O’Byrne’s advisor, Janine Arnold to discuss advocacy issues and limits on liability in Tasmania. Consequently, a boardroom luncheon was held on Thursday, 31 October with Minister O’Byrne providing our members the opportunity to seek insight into the future of Tasmania. Thank you to GHD for hosting this luncheon. As per our member’s requests, we have recently invited Tasmanian Leader of the Opposition, the Hon. Will Hodgman to attend an upcoming boardroom luncheon to share his insight into infrastructure investment to support Tasmania’s growth. We look forward to finalising a date and hope to see many of our members represented.

TAS upcoming events Series of webinars: The TAS Division is pleased to welcome new sponsor, Easyconsult who have extended an invitation to members to attend a unique and affordable webinar series tailored to consultants. The vision is to provide consultants with more time, money and freedom in their career. Look out for emails and reminders on how to register for this exciting new offer from the TAS Division. The TAS Division encourages members to put forward suggestions around which ministers they would like to meet with and also any local issues or initiatives that Consult Australia can be more actively involved in. Please forward your suggestions to TAS State Manager, Zeina Iesa.

Safety in Design Tool Kit Step-by-step guide to the process of Safety in Design

Zeina Iesa State Manager – VIC & TAS Phone: (03) 8699 7700

TAS Other News

Adrress: Level 6, 1 Southbank Boulevarde Soutbank VIC 3006

Are you interested in joining the Consult Australia TAS Division Committee? Send your expression of interest to TAS State Manager, Zeina Iesa. We would love to have you onboard!

Email: zeina@consultaustralia.com.au

TAS Division Strategic Partner:

TAS Division Gold Sponsor:

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Consulting Matters What’s happening at Consult Australia

SA Policy Update

Jan Irvine State Manager – SA & NT Phone: (08) 8216 1177 Adrress: Level 3, 70 Light Square Adelaide SA 5000 Email: jan@consultaustralia.com.au

Liability and contracts: Consult Australia’s ongoing engagement with the Industry Participation Advocate, Ian Nightingale progresses at a steady pace. The release in late September of a number of reforms to Government tender and procurement processes by the cutting of more red tape should make it easier for local firms to win government contracts. Consult Australia’s most recent engagement with the Office of the Industry Advocate was in late November 2013, through our participation in an informal expert group assisting the Office to develop recommendations about reforms to government procurement processes and practices in South Australia. This was the first meeting of the expert group, with future discussions expected to include onerous terms and conditions in standard contracting arrangements and the handling of risk and liability in government contracts. Industry critical meeting: On Wednesday, 11 September the SA Division met with Minister for Infrastructure, the Hon. Tom Koutsantonis and Department of Planning, Transport and Infrastructure CEO, Mr Rod Hook to discuss the current critical state of the consulting industry in South Australia. The group also discussed the significant concern being expressed by member firms relating to the apparent lack of a sustainable pipeline of project opportunities going forward and the impact of this on their business and on the industry as a whole. As a follow-up to this initial meeting both Minister Koutsantonis and Mr Hook attended the SA Division Executive Committee meeting on Tuesday, 17 September to discuss these issues further and explore a range of possible solutions. The meeting concluded with acknowledgement of the current situation and Minister Koutsantonis advocating for industry/government collaboration and ongoing engagement with Consult Australia. As this is an issue of major concern for our members Consult Australia will continue to engage with the Minister to push this agenda, and to supply feedback on local firm engagement in upcoming projects. Workforce diversity: The SA Division Gender Equity Working Group is an initiative of the Division that brings together key organisations within the membership to collaborate on improving the representation of women in leadership roles within consulting practices. The group, with participating firms Sinclair Knight Merz (SKM), URS, Tonkin, Parsons Brinckerhoff, Aurecon and KBR is a powerful avenue to share best practice among member firms. By using this approach it is believed the collaboration will yield better results for the industry. The group has now conducted two workshops and agreed on two key priority areas: job design/flexible working and leadership. Deliverables so far include the development of a business case for flexible working, and the creation of a series of flexible working case studies. The case for flexible working not only supports an inclusive working environment, but also benefits all employees by offering a superior work/life balance. Both the business case and the raft of case studies were published in October and are

available on the Consult Australia website as a support tool for member firms nationally. Also see page 84 of this edition of Consulting Matters.

SA Recent Events Boardroom Lunch Series: The Boardroom Lunch Series’ latest meeting was with Shadow Treasurer, the Hon. Iain Evans MP. With the state election only a few months away, the two major political parties are now outlining their respective visions for the future of South Australia. As major suppliers of professional services to Government, members were keen to hear of the Opposition’s key objectives and vision for our industry moving into 2014 and beyond. The Shadow Treasurer also discussed the Opposition’s views on the rising costs of doing business in South Australia, long-term planning for infrastructure and strategies to boost economic growth in the state.

SA Upcoming Events Industry breakfast: The SA Division will be holding our next breakfast event on Wednesday, 11 December 2013. This will provide an update on the Regional Mining and Infrastructure Plan (RMIP), the Integrated Transport and Land Use Strategy (ITLUS) and how the two integrate with one another.

SA Other News The SA Division acknowledges the fantastic support and generosity of URS in providing an office for Consult Australia in South Australia.

SA Division Strategic Partner:

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SA Division sILVER Sponsors:

What’s happening at Consult Australia Consulting Matters

NT Policy Update Procurement reviews: With the NT Government currently undertaking a whole-of-government procurement review, the Consult Australia NT Division contacted the Department of Business (DoB) to offer the assistance of Consult Australia and our member firms. Our offer was to work closely with the Department to achieve an outcome benefiting government, consultants and the broader business community. The Division advised that Consult Australia’s major concern was unlimited liability and indemnity clauses in NT Government tenders, and the impact this has on consulting firms’ ability to manage risk, or indeed even obtain adequate Professional Indemnity (PI) insurance. We reiterated to DoB that whilst it is difficult to put a specific cost on limiting liability there is strong evidence that limiting liability works to the benefit of both our industry and their clients. We also advised that it is already standard practice amongst private sector clients, and is now starting to be adopted by a range of public sector clients in other jurisdictions as well. Finally, we stated that Consult Australia endorses the ongoing use of Australian Standard contract AS4122-2010 General Conditions of Contract for Consultants, which was developed following extensive consultation with client and industry stakeholders. In response to our submission, the DoB stated the following: “The Reform Project has been given priority by the Chief Minister’s office, and an advisory document produced by the project team is due to go to the Chief Minister’s office in the near future – this will outline advised changes to be made to procurement procedures and methods within the infrastructure space. A top priority within the document is for permission to set up a steering Committee for procurement reforms immediately. The Committee is envisaged to be made up of senior government officials. It is expected there will also be a reference group set up to report to the steering Committee. The reference group will be made up of representatives from industry bodies etc.” As Consult Australia has been actively advocating for this reform, we will be following up with the Department for our inclusion on the reference group.

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NT Division Strategic Partner:

Book now For more course information and dates contact Ezra Atik on (02) 8252 6719 or education@consultaustralia.com.au

NT Division GOLD Sponsor:

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Consulting Matters What’s happening at Consult Australia

Sydney

Sydney Futurenet Silver Sponsors:

FUtureNet Recent Events FutureNet Business Leaders Course Awards Dinner, 28 November: The 2013 FutureNet Business Leaders’ achievements were celebrated in style at Jones Bay Wharf on 28 November. This event was well-attended with course participants presenting their ideas on how a public-private partnership could be utilised to provide critical public infrastructure on the White Bay Power station site. Applications are now open for the 2014 FutureNet Business Leaders Course. Contact NSW State Manager, Alexia Lidas to find out more!

newcastle

FUtureNet Recent Events Courthouse site visit: On 24 October, John Holland Senior Project Manager, Damon Lazarus gave Newcastle FutureNet a presentation about the new courthouse and some of the issues encountered during the construction process so far. Damon’s presentation had a particular focus on mine subsidence issues encountered on the courthouse site. APP Senior Project Manager, Ethan Clarke’s presentation expanded on mine subsidence more generally, identifying key mine subsidence areas both in the Newcastle CBD and surrounding suburbs, as well as outlining alternative methods for overcoming the associated risks and constraints. Following the presentation John Holland facilitated a site visit. The event was well attended with over 40 registered and positive feedback from all.

Sydney Futurenet Bronze Sponsor:

Those who wish to attend Newcastle FutureNet events should join the mailing list by emailing NSW State Manager, Alexia Lidas. Photos from the event are available on Facebook www.facebook.com/ConsultAusFuturenet.

Newcastle FUtureNet upcoming Events Watch this space! Newcastle FutureNet is planning a range of exciting new events for 2014. Send an email to nsw@consultaustralia.com.au for more information.

Newcastle Futurenet Sponsor:

What’s happening at Consult Australia Consulting Matters

Adelaide

• foster a stronger relationship with Infrastructure Australia • undertake cost-benefit analyses of all major infrastructure projects

Futurenet News Adelaide Committee: The Committee has been working hard raising the profile of FutureNet and extending the membership reach. Their annual planning session for upcoming events was held over a shared meal, great conversation and a few drinks— the outcome of which has produced a 2014 events calendar with something for everyone. The coming year will see the continuation of a couple of extremely popular events and the inclusion of some new and interesting offerings not seen before. To highlight the importance of networking and a diverse range of business contacts in the early stages of a professional career, our events have been structured to interest all disciplines working within the built and natural environment in South Australia.

• provide funding and procurement advice to the government on infrastructure projects. Importantly, Ms Chapman focused on how this infrastructure strategy will impact young professionals in the built environment. The opportunity to question Ms Chapman about this policy and infrastructure development in the state was seized upon by the audience.

Adelaide Futurenet Upcoming events We are excited to announce the following events will take place in 2014:

We look forward to seeing you at one of our exciting 2014 events!

• Fringe Club Networking Party

Adelaide FutureNet recent events

• Property vs. Shares Debate

September speed networking: Whilst networking is widely acknowledged to be one of the most powerful keys to success, it can often be uncomfortable or even intimidating for younger professionals. The speed networking which took place at our September event was a great way for attendees to overcome these fears and start to develop valuable skills. A quick conversation with many delegates at nights-end found most had met and spoken with around 30 new contacts in the space of a couple of hours. The evening was held in the University of Adelaide’s The Hub and facilitated by the University’s networking guru, Jen Clark who gave some valuable hints and tips guests could put directly into practice.

• Investigating Environmental Challenges • Mock Court Proceedings—new Safety in Design legislation • Architects vs. Engineers—Debate / Quiz Night challenge Adelaide Futurenet Platinum Sponsors:

Adelaide Futurenet Silver Sponsors:

November FutureNet event: November saw Adelaide FutureNet host Deputy State Liberal Leader, Shadow Minister for Transport and Infrastructure and Shadow Minister for the Status of Women, Vickie Chapman at a breakfast event. If elected, the Liberal Party has pledged to establish Infrastructure SA which will be responsible for assessing and co-ordinating all major infrastructure projects in South Australia. Vickie advised the party will: • develop a 25-year Infrastructure Strategy prioritising major infrastructure projects • develop rolling five-year infrastructure plans

Australian Standards in Action linkedin.com/company/standards-australia facebook.com/StandardsAustralia twitter.com/standardsaus

Consulting Matters What’s happening at Consult Australia

Melbourne

FutureNet recent events Bounce Back event: On 14 August Bounce Back Resilience Expert, Michael Licenblat discussed the following topics with our young professionals: • how to become more productive when working under pressure, change or uncertainty • how to better manage ‘pressure triggers’ to stay focused and effective • how to identify the four keys to becoming ‘better under pressure’ to accelerate your success. The Future of Energy: What alternative energy source does the future have to offer? Is there a future beyond fossil fuels? How will the environmental policies evolve post election and how will it affect the investments in the energy sector in general? Our MC— Hyder Director of Property Energy Services, Anthony Venturini and expert speakers Grattan Institute’s Lucy Carter, Melbourne University’s Professor David Jones and Don Webb from AECOM all shared their views on the future of energy. Thank you to Beca for sponsoring this event.

Melbourne FutureNet professional development series FutureNet Professional Development Series: The Melbourne FutureNet Professional Development Series is a program of seminars aimed at emerging consultants in the built and natural environment. The seminars focus on key skills needed for the successful development of consulting careers, and are suited to young professionals with 3-10 years’ experience. After a successful first seminar, we held our second and third in recent months. At the second session attendees discussed negotiating with Sandy Caspi Sable from Satellite Consulting. This interactive seminar focused on building participants’ understanding of the negotiation landscape with a view to enhancing their deal-making capability. The third session was on constructing and delivering a winning presentation and we welcomed Jennifer Burrows from Value for Life as our speaker. This workshop style interactive seminar focused on the construction and delivery of a winning argument as well as providing some tips on how to get your butterflies flying in formation.

Melbourne Futurenet Sponsors:

What’s happening at Consult Australia Consulting Matters

Perth

FutureNet recent events FutureNet WA end of year luncheon: This year’s Perth FutureNet end-of-year luncheon took place on Friday, 15 November from 12.15pm-2.30pm with Atlas Iron Non-Executive Chairman, David Flanagan as our guest presenter. Since Flanagan

founded Atlas in 2004, the firm has grown from a $9 million exploration company with one employee to a top 100 ASX listed mining company. Flanagan is the Chancellor of Murdoch University, and also participates in industry organisations, not-for-profit boards and charities, holding director positions at Youth Focus, Giving West, the Australian Mining Hall of Fame and the Australian Institute of Company Directors. Mr Flanagan’s presentation provided insight to his experiences over his remarkable career and provided career advice for young professionals.

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Follow FutureNet on facebook on: www.facebook.com/ConsultAusFuturenet

Consulting Matters What’s happening at Consult Australia

Brisbane FutureNet news

Committee news: Following this year’s AGM we are pleased to announce our new Chair will be Mark Case from Brisbane City Council. We would like to thank 2013 Chair, Brad Sandford from Aurecon for showing great leadership this year. Brad will stay on the Committee in a mentor role for 2014. In other news, after five years, including two years as chair (20112012), Brent Lillywhite (Corrs Chambers Westgarth) is moving on to pursue new challenges. Also stepping down from the Committee are Matt Tomkins (McVeigh Consultants) and Jaco Le Roux (Opus). We would like to thank Brent, Matt and Jaco for their longstanding contributions. We will provide a full list of the new Committee in the next edition of Consulting Matters. The Brisbane Committee is dedicated to raising the profile of FutureNet and highlighting the importance of networking at the early stages of a professional career, and is willing to attend firm offices to provide a brief presentation on the benefits of your firm getting involved. Contact the QLD office to arrange a presentation.

Brisbane Futurenet GOLD Sponsors:

Brisbane FutureNet Recent events The Big Debate: Engineers make better lovers! At our final 2013 event held on 24 October, a team of engineers were tasked with proving that they DO NOT make better lovers. So with tongues in cheek and armed with all the stereotypes available to them, including the obligatory pocket protector and slide rule, they took to the podium with gusto. Our team of non-engineers possibly had the more difficult task of proving that engineers DO in fact make better lovers. Our judging panel of five well-established professionals (Seqwater CEO, Terri Benson; BuckleyVan CEO & Director, Greg Vann; URS Regional Manager QLD, Bob McGowan; Greenleaf Engineers Director, Rob Dickie; and Urban Renewal Brisbane, Brisbane City Council Executive Officer, Rebecca Arnaud) then took on the task of coming up with a verdict. The winning team was The Engineers, who won with a winning line of ‘Engineers do not make love—they breed’!

Brisbane Futurenet silver Sponsors:

What’s happening at Consult Australia Consulting Matters

Darwin

FutureNet news FutureNet Darwin branch: The newly formed FutureNet Darwin Committee has been working hard recruiting new members, raising the profile of FutureNet in the NT and building contacts. Planning for 2014 has begun and Committee is looking forward to running some interesting events in the coming year. The group comprises of: • Jo O’Brien (Chair) | Tonkin Consulting • Ben Connon | Wood & Grieve Engineers • Samantha Hayden | Aurecon • John-Paul Foster | SKM • Patrick Quinn | ADG With the diversity of professions working within the built and natural environment the Committee are keen to reflect this diversity within the group and encourages interested individuals to join them. The commitment is very manageable, with Committee meetings held over lunch and there is only one event per quarter—with the workload shared across the group. The benefits of involvement offer a great return on your relatively low time commitment. For further information contact NT State Manager, Jan Irvine.

Townsville

Futurenet Recent events Excellence: It’s not a trivial pursuit: Our second Townsville event was held on 7 November and was a fun and interactive occasion with the usual FutureNet flair; resulting in lawyers teaming with engineers and planners, and project managers. All the professions then split up again to vie for the solo title of trivia champion. The overall winner after a fiercely fought battle of heads and tails was Ashley Ward from DEC-MECH.

Darwin FutureNet recent events Launch event: The FutureNet initiative arrived in the Top End with the Darwin launch event held at the Hilton Darwin on 24 October 2013. To kick things off, we invited a diverse audience to join us at what was the Division’s inaugural networking event. As networking is widely acknowledged to be one of the most powerful keys to business success, the focus of this event was on connecting Darwin’s brightest young minds in the built and natural environment. In the midst of enjoying the opportunity to speak with likeminded young professionals, guests heard from guest speaker, Bryan Davies who was the winner of the 2013 NT Young Achiever Awards, Power and Water Science and Engineering Award. Bryan shared his experiences working on the Christchurch Recovery and in particular the events of the earthquake on Christmas Eve, and his leadership role throughout the recovery process. Attendees included up-and-coming leaders from a diversity of professions including law, architecture, project management and engineering, from both the private sector and government departments and agencies. The success of this event bodes well for an active future for FutureNet Darwin. Darwin Futurenet Silver Sponsor:

We thank our platinum sponsor A2K Technologies and gold sponsor Tracey Brunstrom Hammond for their support of this event. We are excited to have launched this new branch of FutureNet and encourage all to get involved. To enquire about sponsoring future Townsville events please contact QLD State Manager, Stacey Rawlings. We are also currently planning our 2014 calendar of events. Send an email to Consult Australia at admin@consultaustralia.com.au to join the mailing list.

Whatâ&#x20AC;&#x2122;s happening at Consult Australia

2013 Awards for Excellence A night on the town National Strategic Partner

Diamond Sponsors:

PRESIDENT’S MESSAGE The Consult Australia Awards for Excellence has long enjoyed a reputation as one of our industry’s most prestigious awards programs and following the 2012 relaunch under a new structure and Award categories, this remains unchanged. Since last year’s successful Awards ceremony, I’ve been pleased to receive very positive feedback from our members regarding the new categories and in 2013 we were delighted to receive even more entries than last year. Consult Australia feels strongly that these Awards provide members with the opportunity to showcase some of the wonderful initiatives that make an enormous difference when it comes to issues such as workforce diversity, sustainability, innovation in technology and the development of people. These are the projects that often dictate a company’s overall success and it’s important that we celebrate and learn from them.

It has been a turbulent year for the consulting industry. We know that many firms have had to refocus their organisations and adapt to changing market conditions. I am proud to say that the industry has demonstrated true resilience and strength through these times. Firms have turned to innovative new technologies. Others have looked internally and developed their staff when projects were scare, and others have continued to grow and diversify into new markets. The Consult Australia Awards program is our opportunity to recognise these outstanding initiatives and achievements. I’d like to take this opportunity to congratulate all entrants for contributing to this high standard and raising the bar for the built environment consulting industry within Australia.

Jamie Shelton Consult Australia President

CEO’S MESSAGE Welcome to the special Awards section of Consulting Matters, in which we recognise the exceptional initiatives and achievements of our member firms over the last year.

encourage our members to provide honest and open feedback to us to ensure our Awards program—and indeed all of our services—are relevant to all.

Consult Australia’s Awards for Excellence has been running now for many decades and the legacy left by those early events of the 70s, 80s and 90s lives on today. In 2012 however, we made a brave decision to bring about change; introducing a number of new categories and special awards that better allowed us to celebrate the true business excellence within our firms. I am very pleased to report that this new structure not only better reflects us as an Association, but it is one that has been wholeheartedly embraced by our firms and has seen even more Award entries submitted in 2013.

All of our Awards categories are designed to give all our members— no matter how small or large—the chance to showcase their fantastic work. We want all firms to see value in this program and embrace the opportunity these Awards present.

We are extremely glad that these new categories have been embraced—however the journey doesn’t end here. We will always work to develop the program to ensure its relevance and ongoing success. This year we noticed significantly fewer small firms entered, which is something we will work to improve in the years ahead. We strongly

If you entered this year, feel free to tell us anything we might be able to improve on. Perhaps more importantly, if you didn’t enter; please do let us know why.

I hope you enjoy this special edition of Consulting Matters and the 2013 Awards program. Congratulations to all of this year’s winners and highly commended recipients and indeed all those who entered.

Megan Motto Consult Australia Chief Executive Officer

introduction 2013 Awards for Excellence liftout Award Categories Sponsors Special Awards President’s Award Medium Firm of the Year Large Firm of the Year Collaboration Diversity Development of People Sustainability in Design Technical Innovation Client Focus

The Consult Australia Awards for Excellence is an annual event that provides a unique opportunity to profile and promote the outstanding achievements of Consult Australia’s member firms to the industry and community. Since their inception, the Awards have celebrated excellence in the delivery of individual projects. In 2012, the Awards were revamped to focus on celebrating and rewarding business excellence. Firms still enter the same outstanding projects but under new categories and new criteria. The Awards have always demonstrated the business acumen and technical excellence of our member firms’ professional staff in project and service delivery and this mandate remains at the heart of the Awards program.

All Consult Australia member firms are eligible to enter any of the Awards categories. Firm of the Year Awards were selected according to staff size i.e. firms with less than 20 staff were eligible for Small Firm of the Year, firms with 20-299 staff were eligible for Medium Firm of the Year and firms with 300 or more staff were eligible for Large Firm of the Year. Consult Australia encouraged each of its member firms to submit at least one entry to ensure they have the opportunity to be recognised for their outstanding work. Winners of the 2013 Consult Australia Awards for Excellence were announced at a gala black-tie dinner at Hilton on the Park, Melbourne on Friday, 6 December 2013.

Future Leader Highly Commended Awards

JUDGING A panel of independent judges ensures the highest possible standards of fairness and impartiality. All judges are required to ensure the confidential nature of all submissions is maintained. Judging takes place in two parts: 1) Judges receive all submissions and review over a minimum period of two months. 2) A judging day is held during which judges discuss their short-lists for each category and special award, deliberate, discuss and debate before reaching a majority agreement on the final winners.

2013 JUDGES

The judging criteria applied to select the Award winners principally revolves around consulting excellence. This is reflected through the originality, innovation, quality, results and impact of each submission. Community, environmental and social aspects are also considered. Consult Australia would like to take this opportunity to sincerely thank each of the judges on the 2013 panel for generously donating their time and expertise to support the Awards for Excellence program.

• Deloitte Private Managing Partner, David Murray

• City of Sydney CEO, Dr. Tim Williams

• Management expert (University of Melbourne, Department of Management & Marketing), Professor Danny Samson

• Fox Johnston Architects Director, Emili Fox

• Award winning HR specialist, Avril Henry

Award Categories

Collaboration: Recognises member firms that have implemented and delivered outstanding initiatives and/or practices to ensure a more diverse workforce. These initiatives may relate to gender equity and diversity, indigenous employment, disability employment, cross-cultural management or age diversity.

Diversity: Recognises member firms that have implemented and delivered outstanding initiatives and/or practices to ensure a more diverse workforce. These initiatives may relate to gender equity and diversity, indigenous employment, disability employment, cross-cultural management or age diversity.

Development of People: Recognises member firms that have demonstrated an outstanding commitment to sustainable business practices through staff development. Initiatives in this category may include, but are not limited to: succession planning, education & training programs, talent development etc.

Sustainability in Design: Recognises the achievement of sustainable outcomes on an internal or external project through innovative design and/or the innovative application of sustainable materials and principles.

Technological Innovation: Recognises member firms who have demonstrated outstanding leadership in the innovative application of new or existing technology on a project.

Client Focus: Recognises member firms who have delivered exemplary customer service (going above and beyond what the judges consider to be a high level of service) throughout the course of a project.

Entrepreneurship: Recognises a member firm or individual within a member firm who has successfully launched a profitable new initiative/venture. Entrants must be able to demonstrate that the initiative/venture has had a significant impact on the firmâ&#x20AC;&#x2122;s business operations or a project.

Safety in Design: Recognises firms who demonstrate an outstanding, ongoing commitment to safety in design. Entrants must be able to demonstrate a business as usual approach to safety in design across their workforce, with clear, well-established procedures and reporting systems in place.

Future Leader: Acknowledges professional staff of member firms aged 35 years and under who have made a significant contribution to their firm and added value in a demonstrable way.

Client of the Year: This Award gives Consult Australia member firms the opportunity to recognise their most outstanding clients. Clients are judged based on appropriate procurement and delivery methodology, well designed and structured briefs/documentation, appropriate risk assessment, management and allocation, communication and relationship management.

Export: Recognises member firms that have made an outstanding contribution to Australiaâ&#x20AC;&#x2122;s export industry through exceeding financial, sustainability or other expectations on an overseas project or a domestic project that facilitates the export of Australian goods e.g. mining infrastructure. Note: No entries were received for this category in 2013

Special Awards Presidentâ&#x20AC;&#x2122;s Award This award is made by the President in recognition of the individual or firm who has contributed most to Consult Australia and/or the industry over the course of the preceding year.

Firm of the Year Awards Winners of the Firm of the Year Special Awards are selected from the best Category Awards entries.

Small Firm of the Year Sole practitioners or firms with less than 20 employees, with a nomination in any of the award categories are eligible for consideration.

Medium Firm of the Year Firms with 20 â&#x20AC;&#x201C; 299 employees, with a nomination in any of the award categories are eligible for consideration.

Large Firm of the Year Firms with 300 or more employees, with a nomination in any of the award categories are eligible for consideration.

TYPES OF AWARDS Gold Award of Merit: Awarded to projects or initiatives considered by the judges to be of excellence on the criteria nominated. Highly Commended: Awarded to projects considered by the judges to be finalists for consideration for a Gold Award of Merit but not in receipt of these awards.

SPONSORS

National Strategic Partner

BST Global is the leading global provider of business management software and mobile solutions for engineering, environmental consulting and design firms. Over 100,000 end users across six continents and 50 countries worldwide – including Aurecon, Bates Smart, B.G.&.E, BECA, Buchan Group, Cardno, Fender Katsalides Floth, Group GSA, Golder Associates, Meinhardt O.S.D Pipelines, Perenia Carbon, Thomson Adsett Architects, Wave International and Woods Bagot — rely on BST Global’s innovative software solutions to better manage their projects, resources, finances and client relationships.

Autodesk is a leader in 3D design, engineering and entertainment software. Customers across the engineering, natural resources, architecture, building, construction, and infrastructure industries use Autodesk software to design, visualise and simulate their ideas. Since its introduction of AutoCAD software in 1982, Autodesk continues to develop the broadest portfolio of state-of-the-art software for global markets.

Deloitte Private is part of one of Australia’s leading professional services firms providing audit, tax, consulting, and financial advisory services to Private clients, Partnerships, privately owned businesses and not-for-profits. We are a national team focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel.

ACO Infrastructure is the industry’s leading brand for linear drainage systems for transportation infrastructure projects, namely roads and motorways, rail, container ports, airport tarmacs and other heavy duty applications. The product range includes drains that are monolithic in construction or available with either a continuous slot or with conventional removable grates.

Standards Australia is Australia’s peak, non-government standards body and is an independent, not-for-profit organisation. Standards Australia develops internationally aligned standards in the national interest through a rigorous and impartial standards development process, and is committed to promoting Australia’s international competitiveness, economic efficiency and facilitating trade and investment.

Cbus is the leading industry fund for more than 700,000 workers and 80,000 employers in the Australian building, construction and allied industries. Cbus has low fees and a history of strong investment performance. Founded in 1984 by workers for workers, Cbus manages more than $23 billion of members’ funds.

CONGRATULATIONS TO EACH OF OUR 2013 SPECIAL AWARD WINNERS

Special Awards

President’s Award Michael Deegan Mr Deegan impresses with his solid analytical approach. He is capable of taking into account the long-term vision and developing research and strategies to reach the required goals. ministers, leaders of government and the private sector, and sponsors, requiring high levels of political acumen, diplomatic skills and negotiation ability. He has extensive management experience dealing with both large and small teams, listening to and involving staff by delegating as much as possible. He is not afraid to make the necessary decisions. The 2013 President’s Award is made to Mr Michael Deegan and his office for national leadership in Infrastructure. Mr Deegan has over 25 years experience in the infrastructure sector holding positions in the Australian Government as Chairman of Australia’s National Transport Commission, and as Director General of the NSW Department of Transport. He has also worked in the private sector as a project and company director. Michael has successfully led teams of highly qualified professionals—with a strong focus and sound emphasis on infrastructure policy, regulatory reform pricing, operations and investment and led a large team in the delivery of the Sydney Olympic Games. His current role as National Infrastructure Coordinator deals with investment in water, energy, transport and telecommunications. With clear view of the key challenges facing infrastructure, he has been heavily involved in high profile international events and projects dealing directly with

Mr Deegan impresses with his solid analytical approach. He is capable of taking into account the long-term vision and developing research and strategies to reach the required goals. His analytical bent and strategic planning are assets in guiding national infrastructure debate and investment. Key achievements in Michael’s career include the funding and construction advice for billions of dollars of projects now underway, including: • Gawler Line Modernisation $ 291.2 million • Gold Coast Rapid Transit $365 million •G oodwood – Torrens Junction $232.1 million • Hunter Expressway $1.451 billion • Ipswich Motorway $894 million • Majura Parkway $144 million • Melbourne Metro 1 $40 million • Noarlunga – Seaford Rail Extension $291.2 million

• Pacific Highway – Kempsey Bypass $618 million • Regional Rail Link $3.2 billion Which together total some $6 billion worth of investment alone. The office he leads has developed: • Australia’s first PPP national guidelines • Australia’s first national infrastructure pipeline • Australia’s first national infrastructure plan including: o funding and financing o national ports strategy o national land freight strategy o national urban transit strategy all of which create huge investment opportunities, led to better productivityenhancing infrastructure decisions and contributed to high-quality public policy in Australia. He drove the National Urban Policy and has engaged extensively with the private sector here and overseas to place Australia at the cutting edge of international infrastructure development. Michael is a worthy recipient of the 2013 President’s Award.

Medium firm of the year BG&E is proud of its high staff retention rate which it has maintained even through periods of skilled labour shortages. The firm offers satisfying personal and professional growth paths, combined with technically challenging and interesting work. Originally formed in Perth, Western Australia in 1970, BG&E now employs more than 100 staff and has Australian offices in Perth, Sydney, Newcastle, Brisbane and Melbourne with Middle Eastern operations in Dubai and Abu Dhabi. BG&E specialises in: building structures, facades, bridgeworks, civil engineering and infrastructure. Since its inception, the firm has established an international reputation for technical and engineering excellence, combined with an innovative, yet costeffective and practical approach to projects. The firm maintains a small number of strategic alliances with organisations that provide specific expertise which are complementary to its own. It distinguishes itself and maintains its competitive position through the high quality of engineering advice and services. This is achieved through the skill and professional dedication of its staff and a corporate commitment to providing a high level of personalised client service and engineering excellence. Maintaining the satisfaction and support of clients is an extremely important facet of BG&Eâ&#x20AC;&#x2122;s business. The number of long-term client relationships the firm maintains is a testament to its success in this area. BG&E is proud of its high staff retention rate, which it has maintained even through

challenging times. The firm offers satisfying personal and professional growth paths, combined with technically challenging and interesting work. Clients and staff alike are impressed by BG&Eâ&#x20AC;&#x2122;s approach to assembling projectspecific teams in a way that improves the integration of all aspects of the technical requirements across the various disciplines. The combination of highly experienced, senior staff with junior team members enables an optimum blend of technical competence with fresh, new ideas, to produce a high-quality product in a short timeframe. BG&E is characterised by a flat structure, which facilitates knowledge sharing, provides project teams that utilise the best available expertise and provides clients with open access to the highest level of skills and experience. They view their office culture as one of their key differentiators. The firm works hard to ensure that all staff are made to feel like a valued part of the team. It deliberately seeks out personnel who are outgoing, personable, highly motivated and possess high quality interpersonal skills, with strong abilities to work in collaborative environments. BG&E employees are empowered to take initiative and responsibility for project outcomes within their area of influence.

It deliberately seeks out personnel who are outgoing, personable, highly motivated and possess high quality interpersonal skills, with strong abilities to work in collaborative environments. BG&E employees are empowered to take initiative and responsibility for project outcomes within their area of influence.

The firm has a strong emphasis on providing engineering services to those who it would benefit most; often being those who find it the hardest to access. The firm undertakes selected pro-bono projects that benefit from the technical expertise and experience the firms lends. Their pro-bono program has a dual focus on addressing issues of poverty, disadvantage and poor public health in Australia and around the world, and on supporting Australian artistic and cultural endeavours.

Judgesâ&#x20AC;&#x2122; comments: The judges were very impressed with BG&Eâ&#x20AC;&#x2122;s strong focus on community as displayed through their involvement in the MamboTema Bridges project. They applauded their role in supporting the community and said the bridge design process and redevelopment was an excellent project. They noted that the firm shows industry leadership in their approach to sustainability and should be an inspirationâ&#x20AC;&#x201D;particularly for firms of a similar size.

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Large firm of the year Parsons Brinckerhoff is a global consulting firm assisting public and private clients to plan, develop, design, construct, operate and maintain critical infrastructure. Founded in New York City in 1885, Parsons Brinckerhoff is a diverse company of 14,000 people in more than 150 offices on five continents. With a strong commitment to technical excellence, a diverse workforce, and service to clients, at any one time the firm is at work on thousands of infrastructure projects throughout the world—ranging from mega-projects to smaller, more local projects. The firm serves both public and private clients, and offers skills and resources in strategic consulting, planning, engineering, program management, construction management, and operations and maintenance. Parsons Brinckerhoff provides services for all modes of infrastructure, including transportation, power, energy, community development, water, mining and the environment. Over the past few years the firm has undergone drastic change and significant growth. In 2009 Parsons Brinckerhoff became the professional services division of Balfour Beatty plc, the international infrastructure group operating in professional services, construction services, support services and infrastructure investments. In January 2010, Heery International, an architecture, interior design, engineering, construction management and program management firm based in Atlanta, Georgia, became the U.S. buildings operating company of Parsons Brinckerhoff. In October 2010, the Halsall Group, based in Toronto, became Parsons Brinckerhoff’s Canadian operating company. Parsons Brinckerhoff prides itself on its staff; hiring professionals who are creative, award-winning, environmentally and socially conscious, and keenly aware of a clients’ needs. The firm values diversity in its workforce and welcomes new talent and experienced professionals with the same enthusiasm. The firm has a strong emphasis on its staff and offers a range of career development and professional enrichment programs, including:

• internal research and development programs that allow staff to explore a technical subject in detail • employee networks that promote dialogue and knowledge-sharing • training and mentoring programs aimed at enhancing business and technical skills • internal certification programs that provide recognition for individual accomplishments. The firm has created an exemplary work environment that promotes technical excellence and professional development while maintaining the highest ethical standards and superior service to its clients. The firm commits itself to inspiring the world’s best teams to create innovative solutions for physical assets that enhance communities for future generations. It does this with integrity, teamwork, excellence and respect. Parsons Brinckerhoff strives to uphold the example set by its founder, William Barclay Parsons, who devoted much of his energy and talents to community service. The firm honors this legacy through excellent interactions with stakeholders, both within the company and in the wider community.

Judges’ comments: The judges were all extremely impressed with how the firm worked collaboratively with all stakeholders, and displayed a true commitment to excellence in all areas of their operations. They applauded Parsons Brinckerhoff’s impressive approach to project management; noting they were very practical in their orientation and displayed best-practice, classic project management techniques. The judges said that the clear and concise ways in which the firm communicated on the Ipswich Motorway Upgrade: Dinmore to Goodna (D2G) Project spoke volumes about how they communicate in general, with all their stakeholders. One of the key factors for the judges was the firm’s consistently great communication strategies that straddled all elements of a good communication plan.

CONGRATULATIONS TO EACH OF OUR 2013 GOLD AWARD WINNERS COLLABORATION SMEC Australia Pty Ltd & Parsons Brinckerhoff as part of Origin Alliance for the Ipswich Motorway Upgrade:

Dinmore to Goodna (D2G) Project Client: QLD DTMR Project Overview: Origin Alliance, the largest road alliance in Australia, was formed in June 2008 to deliver the $1.95 billion Ipswich Motorway Upgrade: Dinmore to Goodna (D2G) Project. Origin Alliance consisted of Parsons Brinckerhoff (PB), SMEC Australia (SMEC), Abigroup Contractors, Fulton Hogan, Seymour Whyte and the client, the QLD Department of Transport and Main Roads (DTMR): all very different organisations in terms of size, experience and culture. At its peak, Origin Alliance employed around 1,200 people who worked together collaboratively and productively to successful deliver what was one of the most challenging, complex and high-risk transport infrastructure projects ever undertaken in South East QLD. As the largest road alliance in Australia, it was vital that the six alliance partners and 1,200-person workforce were able to work collaboratively to solve a series of challenges over the 51-month period. A similar level of effective collaboration was needed at the Alliance Management Team level. In an Australian first, DTMR selected the five organisations it wanted on the D2G Project. DTMR’s selection rationale was so that the Alliance members could gain new skills, knowledge and experience from working collaboratively with each other.

Significant aspects: To achieve high levels of effective collaboration, the Origin Alliance team put in place project management processes that enabled the right people to come

together and solve complex problems by respecting one another’s knowledge and contributions, engaging with each other to develop effective solutions and empowering one another to deliver ‘best for project’ outcomes. There were significant challenges that the Origin Alliance had to overcome including a tight construction timetable with financial penalties for late delivery, a geographically large construction corridor, a diverse range of professionals from different organisations and with differing operating procedures and processes, and increased pressure with

DTMR actively involved in all stages of the works. Significantly, the D2G Project was delivered six months early and approximately 10 per cent under budget; despite the devastating impact of the QLD 2011 floods, which submerged 40 per cent of the motorway and wiped out the main project site office for in excess of four weeks. In a demonstration of the Origin Alliance’s true commitment to safety in the workplace, the Alliance responded to a spike in near misses by developing their unique Safety Observer Program, which elevated the

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traditional construction industry ‘spotter’ role to a formal position of control and responsibility. With over 300 Origin Alliance personnel attending the Safety Observer training, this initiative saw on-site near misses between people and vehicles reduced by more than 75 per cent within three month. The Origin Alliance partners are now progressively rolling out the program on other infrastructure projects across QLD. Critical to the success of the collaboration on the D2G Project was the Alliance Management Team (AMT), which worked to build a culture where everyone was committed to a shared vision and goals. From the outset the AMT insisted that collaboration should be based on people’s knowledge and skills rather than status or position. Part of their mandate was also to ensure mentoring and coaching was an integral part of the Alliance’s overall approach. Key to the success of the Alliance was strong relationship management. A range of consultative mechanisms were used to manage the relationship between the AMT, project team and field site workers, which were specifically designed to enable information sharing.

These mechanisms were supported by: procedures to capture input and feedback, a database and tracking systems to document project activity, and a range of other documentation and reports that facilitated easy collaboration between teams and at various stages of the project.

Judges’ comments: The judges were impressed by the holistic approach that the multiple Alliance

members took. They noted that on such an extraordinary project, it was clear that their genuine teamwork was a key to the successful project outcomes. The judges were also impressed by their management of the added complexity of the QLD 2011 floods, which changed the course of the project for many stakeholders.

Diversity GHD for Diversity at GHD

- Indigenous support and Women in GHD initiatives • training programs such as the firm’s Xplore for Success Career Resiliency Program and Voice Coaching. The WIG Committee reports to the Office Management Group and is monitored through continuous issues analysis, monitoring and reviewing the implementation of communication and action plans, identifying and realising new or specific communication needs and seeking internal and external feedback on WIG events and initiatives both formally and informally. The firm’s extensive youth program is supported by the GHD Board and Executive Management, and includes a number of activities and initiatives including: • GHD’s Graduate Employment Program

Project overview: GHD is committed to supporting a diverse workplace by implementing a range of initiatives to support Indigenous Australians, women and youth. After more than 40 years working with Indigenous communities, the firm continues to work towards its commitment to help improve learning and employment opportunities for Indigenous Australians. The Women in GHD (WIG) initiative was established in 2007 with three fundamental purposes: to support and encourage the women of GHD, to advocate women at all levels of business, and to connect and network with external clients, suppliers and stakeholders. The long-term strategy is to build awareness of women’s issues in the workplace and to continually work to support women. GHD has a number of initiatives in place to support the youth that they employ and engage with, including an active Young Professionals program that organises social, learning and work-related activities for the firm’s younger employees. There is a longterm business strategy to the development of the firm’s youth. By creating a place where professionals want to stay employed, the firm is able to retain the knowledge and experience their staff gained over their years with the firm. GHD has strong staff retention with a total of 275 people having celebrated more than 20 years’ service with GHD in 2012. Between January and June 2013 alone,

13 people reached their 20-year milestone, six celebrated 30 years and four celebrated their 40-year milestone.

Significant aspects: In October 2010, the then General Manager of Australia and New Zealand requested that GHD investigate the establishment of an Indigenous Services Action Plan to be modeled on the Reconciliation Action Plan template promoted by Reconciliation Australia. The company subsequently developed an Indigenous Services Action Plan 2011-2015 and appointed an Indigenous Services Business Leader (ISBL) to advocate for the implementation of the Plan across Australia. Since implementing the plan in 2011, GHD has employed at least one Indigenous cadet in more than half its offices and a majority of offices support Indigenous enterprise and cultural activity on a local level. The WIG initiative acts as a forum focused on encouraging and supporting the women of GHD. Some WIG-led activities include: • networking and mentoring programs • events that celebrate the achievements and successes of women including International Women’s Day and an annual WIG lunch • identifying male champions to act as influencers, sounding boards and agents of change • supporting client connections

• the Consultant Development Program, which introduces graduates to a range of business, technical and leadership skills, and is tailored to suit each office • work experience positions for both secondary and tertiary students • the Indigenous Cadet Program, which is run in partnership with non-profit organisation, CareerTrackers. In 2013 GHD has 18 cadets; a figure it aims to raise to 45 by 2015. • GHD Young Professional (YP) group, which is a networking group for people with less than 10 years’ professional working experience. The success of these initiatives is demonstrated through GHD’s reputation as one of the leading technical graduate employers in the industry. With 202 graduates employed in the 2011/12 financial year and above-average intake of female graduates, the firm continues to demonstrate its commitment to diversity.

Judges’ comments: The judges found this comprehensive program took a broad approach to diversity; with a variety of initiatives working to create a better environment for Indigenous professionals, women and youth. Their consistency in approach and true understanding of genuine diversity were applauded.

Diversity Parsons Brinckerhoff for Parsons Brinckerhoff Diversity Agenda business and support diversity objectives. Some of the key initiatives include: • an active drive by the recruitment team and Company Directors to recruit female leaders and set gender leadership targets • a Career Continuity strategy and program allowing flexible working arrangements and employment conditions • targeted mentoring programs, which enroll women on an ‘opt-out’ basis, while men remain on an ‘opt-in’ basis • commitment to achieving pay parity • participation in and membership of key bodies such as Engineers Australia, CEDA and Consult Australia to give women access to networking and professional development opportunities.

Project overview:

Through the firm’s participation in key industry initiatives such as the Consult Australia Diversity Roundtable and Champions of Change group, the firm has demonstrated an industry-leading approach to gender diversity. The firm’s early work on diversity training for line managers, salary, targeted mentoring and best practice parental leave is innovative and represents best practice.

Parsons Brinckerhoff’s Diversity Agenda came from the firm’s recognition that it not only had an ethical and moral responsibility to improve diversity balance in all levels and sectors within the organisation, but that it had a bottom-line responsibility as well. In 2009 after an analysis was done on female representation at different levels, the firm’s Women’s Network was formed, which developed and implemented a range of initiatives; the key focus being gender diversity. In 2011 the Network was relaunched as the Diversity Council with the intention to broaden the diversity program beyond gender issues to look at issues such as Indigenous Australian engagement. The Diversity Agenda is strongly supported by the firm’s Directorate, who not only fund the Diversity Council’s activities but also play an active advisory role with the Council. In securing buy-in with staff, a regional team has been elected to represent the Diversity Council in each state. These teams implement and promote the Council’s program within their respective regions. The Diversity Council also aligns itself to internal initiatives and programs that help build corporate cultures including the Leading and Development team and the Professional Growth Network. The Program looks at four key focus areas: attraction, retention, developing and working. Each of the areas has activities and targets aligned to it, which are tracked and measured on an ongoing basis.

Whilst having faced challenges during the downturn in the mining market, in the last year the firm has maintained past levels of performance and profitability and achieved a majority of its diversity targets. Past and current initiatives include flexible working, mentoring, engaging with clients in the diversity space, career continuity, access to role models, childcare and Indigenous Internships.

Significant aspects: After the establishment of the Diversity Council the firm furthered its diversity commitment when it signed up to the United Nations Women’s Empowerment Principles—a set of values for gender equality. Parsons Brinckerhoff was the first engineering consultancy to sign up globally and one of the first Australian organisations to sign up. In order to meet set targets, the Diversity Council has adopted a proactive approach including the facilitation of a range of activities that engage people across the

In recognising its responsibility to embracing diversity holistically, Parsons Brinckerhoff also looks to establish dialogue with clients and other stakeholders at every possible opportunity. In 2013 the firm has engaged with Xstrata and AbiGroup and has signed on to support the University of Queensland’s Women in Engineering Program through the provision of a one-year scholarship to disadvantaged school leavers for their first year of study in an engineering discipline.

Judges’ comments: The judges were impressed by the strong use of data and the firm’s set Key Performance Indicators in the diversity space. The judges thought that Parsons Brinckerhoff’s diversity initiatives were cutting edge and encouraged a positive, holistic and full lifestyle approach.

Development of People SMEC Australia Pty Ltd & Parsons Brinckerhoff as part of Origin Alliance for the Ipswich Motorway Upgrade: Dinmore to

Goodna (D2G) ProjectProfiles and Career Pathways

Project overview: Origin Alliance, the largest road alliance in Australia, was formed in June 2008 to deliver the $1.95 billion Ipswich Motorway Upgrade: Dinmore to Goodna (D2G) Project. Origin Alliance consisted of Parsons Brinckerhoff (PB), SMEC Australia (SMEC), Abigroup Contractors, Fulton Hogan, Seymour Whyte and the client, the QLD Department of Transport and Main Roads (DTMR), all very different organisations in terms of size, experience and culture. The key challenge for PB and SMEC was to identify how they were to bring together such a large group of people from six very different organisations each with their own way of doing things, particularly in regards to Occupational Health & Safety, training and people development. This challenge was made harder by the fact that the client, DTMR, selected the five organisations it wanted to work with. This meant that the successful organisations only started to develop their working relationships and on-site culture after the project was established. This was an Australian first as usually relationships are forged during the tender process.

Significant aspects: From the outset PB and SMEC knew that if they were to successfully deliver the D2G Project, they would need to create a unique site-wide culture where everyone was committed to a shared vision and goals. The Alliance introduced a number of initiatives to achieve this, including:

• an Alliance Charter, which was a blueprint for behaviour • the creation of 10 Golden Rules which everyone who was inducted onto site had to sign up to and comply with • mandatory requirement to wear uniform at all times • a comprehensive Alliance Health Program • rewards and recognition • a Finishing Strongly / Don’t Drop the Ball campaign to maintain efficiency and productivity in the final 12 months. As part of the site-wide culture, the Alliance committed itself to delivering on a number of objectives: • a focus on people’s health and wellbeing • the provision of the right resources, supervision and support, and significant investment in upskilling people • creation of local community employment opportunities. To observe and maintain the health and wellbeing of the workforce, the Alliance introduced a mandatory SafeSpine program, the provision of fruit and healthy snacks, regular LunchNLearn events and sixmonthly health surveys. Initiatives saw reported sprains and strains were 30 per cent lower than industry averages and the number and size of claims reported in Origin Alliance’s Workers Compensation data were also 30 per cent lower. In order to support staff development the Alliance developed an engineering competency matrix to determine its people

development needs. During the life of the project the Alliance invested $6.38 million in training. In an Australian first the Alliance also co-funded a permanent Construction Skills QLD representative on site. To ensure the creation of employment opportunities for the local community the Alliance put in place programs that addressed the employment / training deficiencies within the local community. They did this by supporting the Salvation Army Job Placement Program, Constructive Kids, Constructive Mob and Construction Careers. It also established a Community Leaders Group, which provided input into the impact the initiatives were having on the community. Critical to the success of the above initiatives was that 100 per cent of the workforce (including at peak production) participated. There were a number of positive outcomes reported to have come out of this unique culture including significantly lower staff / field work attrition rates of 12.82 per cent compared to an industry average of 20 per cent.

Judges’ comments: The judges considered this to be the most exceptional people management strategy and implementation they had seen in the industry in the last few years. The strong strategy resulted in outstanding project outcomes including delivery of the project six months ahead of schedule and under budget.

Sustainability in design BG&E for Mambo – Tema Bridges

Project overview: BG&E first became aware of the difficulties faced in the Mambo and Tema villages in Tanzania after a period of time spent there by one of their staff members who witnessed the damage floods had made to a number of bridges. Mambo and Tema are small villages in Usambara Mountains in the district of Lushoto, Tanzania. The village comprises of around 3,000 inhabitants being about 650 families reachable by only three rural roads, which connect them to the surrounding farming areas. The damage done to the bridges had a significant, negative impact on the livelihoods of the local population, as they were effectively cut off from markets for produce and the services available in surrounding towns. Commencing in March 2013, five staff went to Tanzania where—with the help of

the local community—three bridges were repaired and rebuilt.

Significant aspects: BG&E’s overall objective was to transfer new skills to the locals which could subsequently be transferred to other members of the community. This would consequently create an environment where BG&E’s initial assistance would lead to a self-sustaining outcome, tailored to the cultural heritage, lifestyle and needs of the local people. The main objectives of the proposed bridge design, which BG&E considered achieved were: • to provide a design with minimal capital cost and which was affordable to the community • to achieve simplicity in constructability, such that the bridge construction could be understood and mastered by the villagers,

• provide a flexible design based on usage of locally-available, affordable construction materials. Upon arrival in Tanzania, the team realised their initial designs for the three bridges were not suited to the context and they had to come up with other designs which would permit the construction of bridges using local resources. Drawing on the help and experience of the BG&E Director and other colleagues, the team redesigned the bridges to be simply supported, concrete flat-slab structures. The most innovative part of this new approach was that the firm used the existing timber stringers as formwork for the new structure. BG&E were pleased that the community reused all the timber recovered from the bridges to build chairs and desks for the local school. An additional positive outcome from the redesign was that the budget remained close to the original, yet the efficiency

of the new design reduced the on-site construction time. The latter design was also more sustainable, in that it reduced the requirements for timber from local trees. The bridge construction methods were quickly learned and mastered by the enthusiastic locals, who went ‘solo’ to construct the third bridge—which was completed with minimal input from the BG&E team. The BG&E design approach has proven highly successful and is one the firm feels could be successfully used in the refurbishment of the many other timber bridges in the area. In entering the project, the firm aimed to position themselves not as temporary aid workers, but as people who empowered the villagers by teaching them new skills that would make them less dependent on foreign support. A number of sustainability strategies were employed by the firm including procuring local materials to eliminate long-distance material transportation and the use of labour over machinery.

The reconstruction of the bridges will significantly boost the economic future of the village—an immediate result of the improvement in the road transportation between the villages of Tema and Mambo. The bridges will also facilitate vehicle access, allow people to move freely to other villages, schools and other suppliers and will improve business possibilities for local traders.

Judges’ comments: The judges considered this bridge an excellent exhibitor of sustainability in design; and a great example that other companies could implement in similar situations. The strong community focus and outcomes, the efficient use of local timber, innovative use of local resources including labour and a long-term sustainability focus was a true demonstration of excellence; all initiated and funded by the company.

Standards Australia enhances the nationâ&#x20AC;&#x2122;s international competitiveness, economic efficiency and contributes to community demand for a safe and sustainable environment. We are an independent, not-forprofit organisation, recognised by the Australian Government as the peak non-government Standards body in Australia.

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Technological Innovation Arup for One One One Eagle Street

Project overview:

Significant aspects:

One One One Eagle Street is a 56-storey commercial office tower located in Brisbane’s prestigious Riverside precinct designed by Cox Rayner and Arup and constructed by Leighton Contractors.

Site location, unprecedented design, ambitious architectural and client aspirations, and a tight program, presented numerous design and construction constraints.

The 199.7 metre tall building features an organic vertical structure inspired by nature. It comprises 56 levels including 44 typical office floors, two plant rooms, roof level, and a six-level basement, as well as a foyer bistro and an espresso bar at the podium level. Cox Rayner and Arup’s concept for the building was selected through a design competition. The GPT Group, as both owner and developer, was impressed with the sustainable fig tree design. One One One Eagle Street has achieved 6-Star Green Star (v2) design rating and GPT is aiming for a 6-Star Green Star As Built rating and a 5-Star NABERs Energy rating.

• The tower—with six basement levels and a plan footprint of approximately 40m x 40m—had to be built on a site area only half the area of the tower. • The core position, perimeter column placement and ceiling heights had to be specifically positioned to take advantage of its location. • The proximity of the building to the river meant difficult ground conditions with soft marine soils and a high water table. • Ensuring minimal disruption to the existing properties and users throughout demolition and development was critical. Key areas of technical innovation included the hybrid tower form with its inclined perimeter column arrangement, and the topdown construction methodology employed

to allow the tower construction to proceed in advance of the basement excavation. The ‘organic’ tower perimeter structure was devised as a way of transferring loads gradually down around and through the existing facilities to land at ground points where basement columns and footings could be located without the disruption to the busy office and retail precinct. Arup developed a parametric design model that enabled hundreds of column patterns to be rapidly generated using random number generators governed by a defined set of structural rules. The resulting patterns were then reviewed with the architect to select the optimum architectural solution. Another key innovation on this project was the manner in which the basement was constructed in parallel with the tower. Arup developed a construction method that utilised a perimeter diaphragm wall and large prefabricated steel columns that were installed from ground level and plunged into large diameter piles founded in rock below

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The unique and organic structure was also shown to provide better value for money than regular vertical perimeter column arrangements; providing a 20 per cent cost saving compared to a conventional system.

the future basement. These columns were designed to support the tower construction whilst the basement was being excavated. This approach allowed construction to proceed up and down simultaneously and minimised the impact on patrons and businesses using the existing riverside precinct. These innovative applications of technology saw the building embrace global best practice in sustainability—pushing design, aesthetics and construction boundaries. The unique and organic structure was also shown to provide better value for money than regular vertical perimeter column arrangements; providing a 20 per cent cost saving compared to a conventional system. Further cost savings were found in the innovative fire engineered approach to the protection of the perimeter tower columns and associated structural/fire thermal finite elements.

A computer program (specifically written by Arup for the project) facilitated and enabled the development of the angled columns. The project was delivered to the client’s budget, and to quality objectives. Major separable portions were delivered on, or ahead of programme, simultaneously with integrated fitout completion to enable tenants to move in.

Judges’ comments: The judges agree that One One One Eagle Street’s winning organic vertical structure has created a legacy for the engineering and creative industry. They noted the very innovative construction techniques and the impressive use of biomimicry. They summarised that this is a fine building and one that exceeds expectations in all respects.

Client Focus SMEC Australia Pty Ltd & Parsons Brinckerhoff as part of Origin Alliance for the Ipswich Motorway Upgrade: Dinmore to

Goodna (D2G) ProjectProfiles and Career Pathways Project overview: The $1.95 billion federally-funded Ipswich Motorway Upgrade: Dinmore to Goodna (D2G) Project was one of the most complex road infrastructure projects ever undertaken in SE QLD. It was delivered by Origin Alliance (OA) six months early and approximately 10 per cent under budget. As part of the largest road alliance in Australia, Parsons Brinckerhoff (PB) and SMEC Australia (SMEC) were responsible for the design of the D2G Project, working as part of a fully integrated on-site team. The key challenge for PB and SMEC was to improve the motorway’s operation through improved design, geometry, engineering and construction solutions. There were a number of design and engineering challenges that had to be overcome including a narrow construction corridor, working around live traffic conditions, demolition works, managing as 1,200 person team and recovery after the QLD 2011 floods.

Significant aspects: Because the client was a member of the Alliance, communication with DTMR was undertaken both informally and formally. Document drafts were tracked electronically from original preparation through to final approval and implementation. Because the Alliance documented every activity undertaken on the D2G Project using a standardised, consistent and controlled approach, DTMR was able to easily identify best practice achievements and innovations that had the potential for use on other current and future DTMR infrastructure projects. Further initiatives undertaken to support effective communication included updates to DTMR for their newsletters, intranet and other internal communication platforms; attendance by all on-site DTMR representatives and the DTMR Program Director at OA meetings and social events; and holding regular meetings by DTMR teams not directly involved in the D2G Project. To ensure it communicated effectively with DTMR, the Alliance appointed a dedicated

resource who was responsible for working with the Alliance Management Team, the Alliance Leadership Team and the wider project team. This resource was also part of the OA’s Community & Stakeholder Engagement Team and formed a strong relationship with DTMR’s media and corporate communications team leaders.

included five non-cost Key Result Areas.

Another way that client expectations were managed included the Alliance Manager and Stakeholder Engagement Manager working closely with the DTMR Program Director to brief those impacted by the project. This included one State MP, two Federal MPs and 10 local councillors.

• Traffic Flow Reliability, was rated 9.5 out of 10.

The Alliance’s approach of working with DTMR to manage these stakeholders was a major contributing factor to the D2G Project being delivered early due to the elected representatives becoming OA’s strongest advocates at a local community and political level.

• Design optimisation and maintenance was rated 7.5 out of 10.

At the project commencement, DTMR and OA agreed on specific performance criteria based on a mix of cost and non-cost criteria. • Overall project costs were tracked and reported against the previously agreed total project budget on a monthly basis. • The timing/delivery of the D2G Project was tracked and reported on a monthly basis against the originally agreed 51-month construction schedule. The second tier of performance criteria

During the life of the D2G Project, eight audits and verifications were undertaken and each criterion was independently rated; each received an ‘outstanding’ rating. • Traffic Flow Safety was rated 10 out of 10.

• Community and Stakeholder was rated 8.4 out of 10. • Connectivity and Access During Construction was rated 7.8 out of 10.

Judges’ comments: The judges said the Origin Alliance has set a new benchmark for Queensland industry by developing special techniques and methods of engagement and relationship building for the project. The involvement of the client on a day-to-day level and in all areas of the project was outstanding. The judges applauded the strong community engagement; noting that the active participation from both State and Federal government representatives demonstrated excellence in collaboration.

To u g h d r a i n a g e t h a t p e r f o r m s

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Safety in Design Parsons Brinckerhoff and Arup Joint Venture for the Airport Link, Northern Busway (Windsor to Kedron) and Airport Roundabout Upgrade

all staff were made aware of the Project’s key SiD principles. A project-specific procedure was developed that provided the process and accountabilities for an overview of SiD, and which described the identification, management and reporting of SiD issues. With many of the design and construction staff on temporary assignment from interstate or overseas offices, the SiD facilitators had a major opportunity and challenge. They were in a position to draw on the extensive international and interstate experience, but they also needed to normalise the project’s SiD process to ensure a consistent, comprehensive approach. This challenge was managed through a collaborative effort; with all PBA staff undertaking a formal induction process, moral training sessions and task-specific on-the-job training.

Parsons Brinckerhoff and Arup operating at the PBA Joint Venture (PBA) faced numerous challenges in constructing the project including constructing in a constrained, heavily trafficked and highly populated brownfield location. Project overview: The $5.6 billion Airport Link has delivered a landmark infrastructure project for Brisbane; tackling congestion, enhancing the busway network and removing an infamous traffic bottleneck through innovative and inspired design. Airport Link includes three separate projects—AirportlinkM7, the Northern Busway and the Airport Roundabout Upgrade. Together, they represent the largest single investment in transport infrastructure ever undertaken in Australia. Parsons Brinckerhoff and Arup operating at the PBA Joint Venture (PBA) faced numerous challenges in constructing

the project including constructing in a constrained, heavily trafficked and highly populated brownfield location. These challenges made effective Safety in Design (SiD) essential to project success.

Significant aspects: The PBA Joint Venture focused heavily on designing for safe construction, commission, operation and maintenance. During design development, each design package was subject to comprehensive SiD process. PBA worked with the philosophical basis that everyone had a role to play in SiD and

PBA implemented a comprehensive SiD system that transitioned through all stages of the project, involved a wide range of stakeholders and enabled a consistent application of strategies. The SiD review process required regular review workshops, which helped to make hazard identification and mitigation a team effort. An independent verifier sat in on SiD workshops to improve the attendee’s understanding of design solutions and they also had an avenue for early input and discussion. There are multiple examples on the project where the SiD process improved design through revisions of design solutions e.g. by improving construction efficiency, significantly reducing site temporary works and improving safety for road users and personnel. The SiD review process was used as a reporting tool. During the life of the project, PBA prepared more than 600 design packages and more than 3,600 formal design submissions, each having a packagespecific SiD report. This process improved construction, operation, maintenance and produced a safer and more cost-efficient whole-of-life design solution. It changed the mindset of all project participants, made them aware of broader issues and requirements and permitted early identification of hazards.

The benefits of early involvement of all project parties ensured that timely responses could be developed for key SiD inputs. The PBA team was supported by the combined resources of Parsons Brinckerhoff and Arupâ&#x20AC;&#x2122;s corporate offices and was regularly reviewed and formally audited by home office staff for compliance to AS/NZS ISO 9001. PBA also used the combined Occupational Health and Safety (OHS) resources of the two parent organisations to undertake regular reviews of project team safety systems and SiD process. As a result, the team was able to ensure ongoing compliance with current legislation. Internal quality bulletins were distributed to teams to inform them of changes and

protocols. Their purpose was to ensure there was a consistent and robust approach to all activities, including SiD. They included procedural information, design inputs, Workplace Health and Safety (WHS) legislation and relevant case study examples.

Judgesâ&#x20AC;&#x2122; comments: The judges strongly commended the two competing organisations coming together and collaborating on the important issue of safety in design. They were impressed by the project-specific processes put in place and applauded the effort that PB and Arup put into ensuring they had covered off every detail in this area of the project.

future leader Dr Ryan Falconer from Arup Over the past few years Ryan has been involved in a number of international organisations, groups and committees including the International Young Professionals Foundation, the Annual International Sustainable Development Research Conference and the Chartered Institute of Logistics and Transport.

Priority on behalf of the WA State Transport Portfolio. Following this he presented at two national conferences, was featured in Arup’s Global Research Review and his work received a 2012 Planning Institute of Australia WA award.

Dr Ryan Falconer is a Senior Project Manager within Arup’s Perth planning team and has responsibility for leading innovative projects for both Government and private clients. Ryan is a member of the team’s leadership group and is responsible for leading projects for clients including LandCorp, the Public Transport Authority (PTA) WA, Department of Transport WA, Department of Planning WA and BHP Billiton and is sought-after for international projects as well. Ryan has authored a number of publications and books and has contributed to, authored or peer-reviewed publications by CSIRO, UN-Habitat and Ashgate and various industry journals. With a background in sustainable urban transport planning and through his innovative thought-leadership, Ryan has challenged conventional private vehicledominated access philosophies. His delivery of the Perth Transit Oriented Development (TOD) Opportunities Study for the Public Transport Authority— which developed a strategic assessment framework for metropolitan train stations— has received national recognition for innovation. His pioneering approach was the first in Australia to incorporate analysis of potential for stations to anchor new light rail or bus rapid transit lines, and how this might impact development potential. It received multiple national awards. Ryan also led the development of A Practitioner’s Guide to Bus Movement and

Ryan is strongly committed to ongoing professional development. His PhD in Sustainability and Technology Policy received an Australian Research Council Industry-linked scholarship. Ryan also holds a Master of Science (Distinction) in Geography and a Bachelor of Arts (First Class Honours) from the University of Canterbury, New Zealand. In 2009-2010 he was selected from amongst his peers to participate in a Future Leaders course and in 2012 was selected from the global business to participate in the Arup University Masters Module, Cities as Systems, in which he attained a Distinction. Ryan demonstrates business and commercial acumen through his outstanding business development skills, contributions to business planning and dayto-day leadership. He assists in driving commercial success for Arup and despite volatile market conditions, has consistently delivered a healthy pipeline of business. Over 50 per cent of his engagements are self-sourced, and his focus on client relationship development— in addition to technical delivery—means new clients are often prepared to offer future work one-on-one. His contributions to business planning was best exhibited in 2011 and 2012, where Ryan was part of a small group of emerging leaders competitively selected to form a taskforce to advise Arup’s Australasian Board on topical business issues. Ryan’s day-to-day role includes helping lead Arup’s Perth Planning team, as well

as coordinating project inputs from junior staff and overseeing their professional development. Ryan is very supportive of Arup’s Young Professionals group and has presented to them on his consulting experiences. He also takes it upon himself to mentor graduates. Arup nominated Ryan as the Perth office’s TravelSmart Champion and Ryan is also credited with developing the office’s first Green Travel Plan. Ryan’s contributions to Arup are in addition to his significant contributions to industry and the wider community. Over the past few years Ryan has been involved in a number of international organisations, groups and committees including the International Young Professionals Foundation, the Annual International Sustainable Development Research Conference and the Chartered Institute of Logistics and Transport. Since 2010 Ryan has been a member of the AITPM WA Committee, in which he is responsible for coordinating membership and professional development activities. In 2013, Perth is hosting AITPM’s annual National Conference, for which Ryan is responsible for organising trade displays and co-selecting transport planning papers. Also since 2010, Ryan has been a sitting member of the Urban Development Institute of Australia WA Sustainability Committee. Ryan’s community work has included volunteer roles with the Canterbury Coastguard Christchurch City Mission, St Johns Community Care and he is currently a volunteer gardener with the Volunteer Taskforce in Perth.

Judges’ comments: The judges commended Ryan on his willingness to mentor his younger colleagues, and applauded the leadership he had shown— not only technical fields but beyond the firm within industry. They also spoke highly of his determination to bring about change. This was a unanimous decision by the judges who noted that Ryan was highly respected by his clients, peers and mentees. The judges said that his forward-thinking approach to his career and the industry is a characteristic that is fundamental to the future growth and development of the profession.

Congratulations, from all of

At Cbus, we understand the hard work, effort and skill required in all areas of building and construction. That’s why we’d like to congratulate all the winners of the 2013 Consult Australia Awards for Excellence. A job well done.

2013 Consult Australia Awards for Excellence Cbus 1300 361 784 www.cbussuper.com.au Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262.

Client of the year Thiess, nominated by Hyder Consulting for Royal North Shore Hospital

Project overview: Thiess and Hyder Consulting (Hyder) have established cross-organisational relationships on the Royal North Shore Hospital (RNSH) project that have elevated the client/consultant relationship into a ‘meeting of equals’. The two organisations came together and supported the delivery of a complicated, high profile project on time, on budget and to world-class standards. More than 53 existing buildings were consolidated into an integrated, purpose-built, world-class hospital precinct. The requirements included a new 800-bed Acute Services Hospital, a 7,000 square metre community health building, extensive refurbishment of existing buildings, a new 600-car multi storey carpark and extensive upgrading of belowground infrastructure, roads and carparks. In 2007 Thiess and Hyder entered into an Alliance to develop a schematic design for the winning InfraShore bid which was successfully converted into a project for both parties and completed in December 2012. NSW Health Minister, the Hon. Gillian Skinner said, “This is one of the biggest, most expensive hospitals rebuilt in the history of the State. It is value for money compared to buildings of its kind in other parts of Australia.”

Significant aspects: The formal brief for RNSH from NSW Health was derived from contract documents. Together, Thiess and Hyder took the brief and developed it through structural options, innovative façade design, clarified the impact of ‘post disaster recovery’ design and developed requirements for retention systems for both new hospital and existing hospital demolition works. The two organisations were involved in planning the budget against various project stages, and the initial budget was carried through the entire project without any requirement for re-negotiation. From inception Thiess and Hyder worked to understand the project vision and desired outcomes from an early stage, and the two organisations worked together to add value to the project.

Thiess approached the project with one client in mind—NSW Health and the ultimate end users of the hospital (patients and staff alike). The two organisations believed creating a strong teamwork culture contributed to the overall success of the project and made it easier for all parties to deliver their services with one client in mind. The two organisations worked together to manage risk assessment allocation in a consistent and fair manner. Thiess rigorously managed the project risk through close cooperation and review of the design with the Consortium partners. The lack of a major risk event during construction and a defect-free project handover were clear indications of the quality of the risk management practices. Thiess also managed a strict master project budget with Hyder operating via a highly visible and robust project management system. Chairman of Health Infrastructure, Bob Leece cited RNSH as, “…arguably delivering the best value for money (lowest cost per square metre) with the latest robotic technologies…” Project safety was also a priority for both Thiess and Hyder. Even with an estimated 600 workers on site at peak activity, Thiess effectively managed a full-scale safety program. Robust reporting systems enhanced project communications and regular contact between the two organisations formed part of the important cultural equation.

Thiess’ strong focus on teamwork and a ‘one team’ philosophy enabled all those involved to understand not only one another’s roles, but the bigger picture as well. This approach ensured the design team, consultants and builders could work together and strive for a shared outcome. Both organisations worked hard to sustain open, bilateral dialogue and responsiveness, supported by regular reporting, meetings and monthly project reviews where teams shared constructive feedback. This regular interaction allowed the organisations to address issues before they could escalate to a point of causing detriment to the design or program outcomes. The project team also set up formal ‘mirrors’ between Thiess and Hyder to manage different levels of relationship. This structure also helped communications and ensured that the relationship worked well across all levels of both organisations.

Judges’ comments: The judges were impressed by this complex, large-scale project on which two organisations came together using robust systems and strong relationship-building strategies. They noted an ‘element of seamlessness’ evident in this project was likely due to Thiess’ effective procurement and delivery methodology; well-designed and structured briefs/ documentation; appropriate risk assessment management; and allocation, communication and relationship management. The judges commended Thiess for being an outstanding client.

HIGHLY COMMENDED

COLLABORATION

Project: Northern Rivers Waste Firm: Hyder Consulting

Project: Macleay River and Floodplain Bridge Firm: Arup

DEVELOPMENT OF PEOPLE

SUSTAINABILITY IN DESIGN

Project: Smart Seeds Firm: GHD

Project: Yarra Park Recycled Water Facility, Melbourne Firm: Arup

TECHNOLOGICAL INNOVATION SUSTAINABILITY IN DESIGN Project: Goodna Sewage Treatment Plant Stage 4A Upgrade Project Firm: Sinclair Knight Merz

Project: Lightning Fast Flood Modelling for Multiple Meteorological Event Scenarios Firm: WorleyParsons

HIGHLY COMMENDED

TECHNOLOGICAL INNOVATION Project: Origin Alliance - Ipswich Motorway Upgrade: Dinmore to Goodna (D2G) Project Firm: Origin Alliance (SMEC Australia Pty Ltd and Parsons Brinckerhoff)

CLIENT FOCUS Project: Glenfield to Leppington Rail Line Firm: SMEC

ENTREPRENEURSHIP

SAFETY IN DESIGN

Project: Growing our Sydney Business Firm: Northrop

Project: SMEC Australia Safety in Design Firm: SMEC Australia Pty Ltd

SAFETY IN DESIGN Project: The Nationâ&#x20AC;&#x2122;s Capital - A Safer Place Firm: Brown Consulting

FUTURE LEADER

Project: Trudy Myers Firm: Taylor Thomson Whitting

Project: Camilla Freestone Firm: SMEC

Consulting Matters Features

The boiling frog syndrome CONSULTING EXCELLENCE IS NOT ACHIEVED JUST BY KNOWING ONLY THOSE STRATEGIES THAT DIRECTLY LEAD TO SUCCESS. IT IS ALSO ABOUT RECOGNISING AND AVOIDING THOSE FACTORS THAT LEAD TO DOWNFALL.

No business gets into trouble overnight; business stress is a result of events that happen over time. Events that favourably or negatively impact a business can be classified as cyclical or structural. The current business environment is difficult to navigate due to cyclical volatility and structural change happening at the same time (see figure 1 – boiling point). A good example of this is the cyclical volatility in the Australian dollar; while structural changes such as customer buying behaviour has changed due to the digital age. Volatility in cyclical forces post the Global Financial Crisis (GFC) has masked structural change facing many businesses. Failing to react to structural change increases the risk of business models redundancy. The metaphor I like to use is the ‘boiling frog’. If a frog is placed in boiling water it will react by jumping out; but when placed in cold water that is heated gradually, it doesn’t perceive the danger and will boil to death.

Figure 1

The wrong way forward in a business environment where structural change is occurring is more of the same. Companies that successfully address structural change will prosper. Those that do not will fall behind competitors as old sources of competitive advantage weaken and new sources appear.

Table 1. Cyclical vs. structural forces

Value proposition A concise value proposition should articulate the benefits that can be delivered to targeted customer segments. This should include the benefits and costs of the offer, impact on the customer, Unique Selling Point (USP) relative to competitors and track record to support the proposition.

Cyclical volatility – contraction or growth influenced by

Structural changes arise from the introduction of

Interest rate movements

Technological developments

Employment

Changing customer preferences

Gross domestic product (GDP)

Product substitution

Foreign exchange movements

New market entrants

Critical decisions for distribution channels include weighing up the opportunities and costs of different models, including direct vs. indirect, exclusive vs. non-exclusive arrangements and e-commerce vs. bricks and mortar channels to market.

Equity market movements

Changes in pricing & revenue structures

Pricing

Inflation

New distribution channels

Credit spreads

Changes in cost structures

Bond prices

Capital intensity

Activities

Successful businesses understand how to identify and exploit the emergence of new patterns by remodelling all or parts of their business (see figure 2).

Activities should be aligned to the value proposition. Activities that do not add value to the customer may be outsourced or removed. Distribution

Traditional pricing structures include cost-plus, mark-up, target return and value driven models. However, in the last decade new pricing models such as freemium, bait and hook, subscriptions, bundling have added complexity and risk. Supplier terms A business model that involves price competition should include tight working capital policies. This means managing working capital with discipline. On the other hand a niche player can extend favourable credit terms to reflect a business model that charges higher prices.

Features Consulting Matters

Figure 2

Cost structure A business with a low fixed cost base has lower levels of risk, but will not achieve the benefits of operating leverage during boom times. Alternatively a business with a high degree of operating leverage (relatively high fixed costs) will benefit from scale and volume. Profit structure A high volume business model is more likely to generate low margins, while a high margin business can be profitable with low volume. However, it is critical that management act if there is deterioration in either volume or margin. Infrastructure The degree of capital intensity of business models can vary significantly. Generally speaking, the higher the capital intensity the less valuable the business model; the reason being, capital expenditure is a drag on free cash flow generation and the hurdle to generate returns on capital employed is higher. However, a high degree of capital intensity in some industries can act as a barrier to entry, providing a market structure where superior returns can be generated. Capital structure A business can finance its operations through debt or equity. The optimal capital structure should be targeted to maximise the value of the business. Debt is generally cheaper than equity and can magnify returns on equity. However, businesses with a high degree of operating leverage (fixed costs) should match the level of debt to the variability in cash flows, to manage financial risk. At PwC we are continually seeing business refine their business models to deliver and capture value. Charles Darwin has been quoted as saying, “It is not the strongest or the most intelligent who will survive but those who can best manage change.” Alister Berkeley Principal PwC

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Consulting Matters Features

Building a culture of excellence Excellence in our industry is often measured by exceeding client expectations and your ability to deliver excellence is fundamentally determined by your organisation’s corporate culture. So how are culture and performance linked? Quite simply… companies with strong corporate cultures outperform companies with weak cultures. With a strong organisational culture, employees are dedicated and engaged in working toward common goals. They are loyal and committed to the vision and values of the organisation and achieve increased efficiencies and productivity, as they are proud to be a part of something ‘bigger’. When you choose to build a corporate ‘culture of excellence’ you stop wasting a remarkable amount of time and money nurturing a culture that is merely accidental. Instead, you equip your teams with the right mindset and skills necessary to focus on creating your own specific desired results. How to build a culture of excellence in your organisation:

1. Communicate your organisational vision and ensure that it’s understood A culture of excellence is created when employees not only understand the company’s vision but also accept responsibility for helping achieve this vision through their individual roles and actions. It is therefore important to encourage—in fact insist upon—all staff getting involved in defining and owning the organisational vision and not simply observing it as a masthead of corporate words.

2. Instill purpose and meaning Employees excel when they feel that their work has real significance and purpose. Everybody concerned is inspired by the common purpose and speaks the same language of excellence, which becomes the driving force behind everything that they do. Your employees will think in more resourceful and innovative ways, and when they are faced with new challenges and change, their clarity of purpose will help develop the necessary tolerance and skill to progress onwards.

When you choose to build a corporate ‘culture of excellence’ you stop wasting a remarkable amount of time and money nurturing a culture that is merely accidental.

3. Pioneer a mindset of excellence

5. Create sustaining habits

For most professional services firms achieving a high degree of professionalism, quality, and excellence in their work is the primary motivator. However instead of building on strengths, organisations inherently tend to concentrate on problem solving and in the process end up settling for mediocrity. Firms with a culture of excellence talk about performance and success, focusing on creating a culture that empowers, motivates and engages employees. Everyone expects that they will push themselves to become a master in their role and have the support of those around them to help them in this pursuit. Employees and teams are encouraged to explore, promote and develop their common goal of achieving excellence. The resulting positive energy and drive resonates throughout the company, building the skills and competencies required to grow the business.

Habits powerfully influence who we are as individuals and drive organisation culture. Habits are often unconscious patterns; regularly defining our character and producing efficiencies, or inefficiencies, within us.

4. Collaboration A key feature of a culture of excellence is highly collaborative teams where every employee and all teams work together toward a common organisational vision with the belief that they are on the same side. This strong collective mindset delivers excellence! Many of us have had the experience of working in companies where a silo mentality reigns. Teams and individuals closely guard their expertise, projects and knowledge. Managers need to lead collaborative efforts and encourage and reward staff so there is no reason to protect individual roles, projects or expertise.

We are what we repeatedly do. Excellence, then, is not an act, but a habit. ARISTOTLE Invest in habits that reinforce your company’s desired culture. If it’s collaboration, organise regular team building events and if it’s technical brilliance, create opportunities for staff to work on and show off their innovations. If it’s having fun at work, arrange social events, or if it’s professional development, provide internal training programs. Designing habits to strengthen your culture is a guaranteed path for performance excellence. The path to excellence is unique for all companies that choose to take the journey. Making changes within your organisation in the pursuit of a culture of excellence can be a lengthy process that often means rewiring your company’s basic DNA. But think of the most successful companies you have worked for or have been associated with; these winning firms attest to the value in making their culture their mission for excellence. Jenny Maree Consultant VSC Growth

Features Consulting Matters

No time like the present to position for prosperity Five super-growth industry sectors worth an extra $250 billion to the national economy over the next 20 years hold the key to Australia’s future prosperity. In a recently released report, entitled Positioning for Prosperity? Catching the next wave Deloitte focuses on business imperatives for a prosperous Australia. The report highlights that exceptional growth in these five super-growth industry sectors could add an additional $25 billion to Australia’s GDP in 2033 or a boost of about one per cent to an economy turning over $2.6 trillion in today’s dollars. The first place to look for diversified growth is in markets that can be expected to grow significantly faster than the global economy as a whole over the next ten or 20 years. CURRENT, NEXT AND FUTURE WAVES Central to the report is a Positioning for Prosperity map (see over the page), which assesses where the next waves of prosperity are most likely to come from by plotting expected average global GDP growth rates over the next 20 years against the level of Australian competitive advantage in each sector.

The five identified sectors which offer both high growth rates and Australian advantage are: • Agribusiness: Global population growth of 60 million per year will increase food demand, with Asia’s growing middle classes set to boost their protein intake. • Gas: Rapid growth in emerging economies has polluted the air in the major cities to our north. That will underwrite demand for gas, a cleaner and greener alternative. • Tourism: This sector is set to double in size in the next 20 years, with Asia’s expanding middle classes fuelling the growth. • International education: Foreign students are already our fourth biggest export earner; with India and China likely to drive great growth in demand in the sector. • Wealth management: Three billion people in Asia will join the middle class by 2030 and by 2050 the region will account for more than half the world’s financial assets. As well as mining and the five super-growth sectors identified above, the Positioning for Prosperity map features 14 other major sectors whose contribution to the nation’s

prosperity will continue to be vital. These include big, domestically-focused industries such as banking, health, construction, business and property services, transport and logistics, public administration and manufacturing, among others. Implications for the agribusiness industry The opportunity for Australian Agribusiness is enormous due to forecast global population growth, changing diets and the need to increase food production. The challenges are: • capital • supply chain costs, in particular infrastructure related charges within road, rail and ports • inefficient markets, particularly as they relate to water and pricing patterns across a range of commodities • labour challenges and land-use conflicts, particularly associated with competition with the resource industries • R&D investment falling and agricultural graduates at an all-time low.

Need Industry skilled migration advice? Consult Australia members have exclusive access to a Department of Immigration and Border Protection Industry Outreach Officer. The officer provides free advice on: • Visa options and case management • Immigration processes and changes to migration policy • E-lodgement of visa applications For more information, contact Industry Outreach Officer Satinder Pasricha by email satinder.jit.singh.pasricha@immi.gov.au or telephone on on 0413 234 126.

Consulting Matters Features

Wealth management industry Our wealth management industry has aspirations to: • be a significant financial services hub in Asia • serve the growing Asian middle class • generate capital inflows into Australia. Implications for the gas industry The gas industry has massive opportunity due to the growing global demand for energy, coinciding with the global appetite for cleaner energy. To leverage this gas boom the following needs to be considered: • win hearts and minds of communities regarding the importance of gas • reform federal and state regulatory environments • make Australia a haven for gas sector top talent and innovation • increase productivity and cost competitiveness • improve collaboration across the sector.

Implications on international education Australia’s educational institutions have built our fourth-largest export industry. It is critical the education sector tackles a number of issues that are acting as barriers to it becoming a super-growth sector. Education to-do list: • Time to deregulate pricing in the sector: If institutions had deregulated pricing, it would encourage them to be more responsive to student needs and allow them to thrive.

• Redefine migration pathways to boost international demand: Australia can guide high-performing international students to secure permanent residency and employment, once they graduate, so their knowledge and skills are retained here.

This industry is growing due to our compulsory superannuation system and the opportunity to build on our domestic success and export into Asia. Australia needs to develop business, product suites and cultural ties in Asia to make the most of the regulatory and taxation positions.

• Restore the prestige of educators: Fully fund university places, pay based on performance and empower ‘super teachers’ to coach and mentor.

In summary, Australia’s future growth will be more diversified than the past decade and opportunities are there to generate exceptional and lasting sources of future wealth for us. There is no better time for us to position for this prosperity than now.

Tourism implications

Tara Hill Partner Deloitte Private

Tourism is projected to be the second fastest growing sector in the economy over the next two decades. Drivers include our unique tourism assets, our proximity to Asia (and their burgeoning middle class) and a depreciating Australian dollar. What should be done? We need to orientate ourselves toward the opportunities to ensure we’re Asia-ready (with the product, the promotion and the experience). We need to support tourism investment and we need to continue to promote digital adoption. A national shared vision is required in the industry, as is investment in tourism products and infrastructure that Asian travellers desire such as higher-end accommodation.

About Building the Lucky Country Deloitte’s Building the Lucky Country – Business imperatives for a prosperous Australia series has been developed to prompt debate and conversations, and focus minds across business, industry associations, government and the media on the ‘big picture’ issues facing the Australian economy. Previous papers in the series were, Where is your next worker?, which focused on the country’s skill shortage and Digital disruption – Short fuse, big bang? which examined the impact of digital disruption.

Consulting Matters

Summer 2013-14

We hope that you enjoy this copy of Consulting Matters magazine. If you have received this magazine from a colleague and you’d like to receive your own copy each quarter, simply email info@consultaustralia.com.au.

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Last updated: December 2013

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Economic

Forecast

December 2013

Welcome to Forecast: a quarterly publication that aims to keep Consult Australia members up-to-date with the latest market trends in building and construction.

Overview In its recent economic outlook report, the International Monetary Fund (IMF) lowered its forecasts of world growth from 3.1 to 2.9 per cent in 2013, and from 3.8 to 3.6 per cent in 2014. The modest growth forecast for the advanced economies was unchanged but growth in the developing economies was marked down by around half a percentage point in both years. In most developing economies, slower growth was found to be the result of short-term cyclical downturns. In China and Russia, however, structural changes are expected to slow longer-term growth. In August, the Reserve Bank forecast that the Australian economy would grow by 2.5 per cent in 2013/14 and by 2½–3½ per cent in 2014/15. Business conditions deteriorated in the September quarter, and in its November quarterly the Bank lowered its forecast for 2014/15 to 2–3 per cent. We are still forecasting growth of 2.4 per cent in 2013/14 and 2.7 per cent in 2014/15. Engineering construction activity eased by 0.5 per cent in the June quarter of 2013: it fell by 6 per cent in mining, oil and gas but increased by 4 per cent in other engineering construction. Engineering construction was down in all states except Western Australia, where it rose by 4 per cent. Among the bigger states, it fell heavily in Queensland (7%) and South Australia (5%) but by only about 1 per cent in New South Wales and Victoria. Work done on new housing and non-residential building eased very slightly but housing renovation activity increased by 2 per cent. Total construction activity in Australia was virtually unchanged and only 1 per cent lower than a year earlier. Total activity increased in New South Wales, South Australia and Western Australia but fell in Victoria and Queensland.

Non-residential Building Activity eased slightly again in the June quarter of 2013 to a seasonally-adjusted annual rate of $33.4 billion: 2 per cent less than a year earlier. Forward indicators remained weak in the June quarter. Work commenced in Australia in the year to June was 7 per cent less than work done. At the end of June, there was nevertheless still around 8Â˝ months work in the pipeline, so there is no danger of a sudden drop in activity. The indicators were relatively strong in New South Wales and Western Australia but negative elsewhere. National approvals, driven by a big rise in approvals of private health care buildings in Queensland and Victoria, increased to an annual rate of $39.4 billion in the June quarter. But they fell back to an annual rate of $33.6 billion in the September quarter, with public approvals down 10 per cent and private down 16 per cent. The encouraging sign was the rise in commercial approvals â&#x20AC;&#x201C; mainly of offices. Total work approved in the year to September was $34.9 billion: about the same as approvals in the previous year to September, but 5 per cent more than work done in 2012/13. That rise in approvals, along with stronger business confidence, has led us to lift our forecasts of activity. The National Australia Bankâ&#x20AC;&#x2122;s Quarterly Business Survey for the September quarter of 2013 found that business conditions (sales, profits and employment) deteriorated to their lowest level in four years. Following the election, however, confidence surged to a two-year high. Despite the recent gloom, low interest rates and improved confidence will probably be enough to lift activity modestly this year and next. We are forecasting a rise of 3 per cent this year and 5 per cent in 2014/15.

Non-residential Building Forecast: by State & Territory NSW

VIC

QLD

value of work done, $ million, constant 2010/11 prices

TAS

ACT

Australia

2010/11 (a)

9,862

8,541

8,155

2,517

5,492

704

456

1,332

37,059

2011/12 (a)

7,590

8,622

7,390

2,328

6,235

510

706

1,280

34,660

2012/13

7,725

8,483

6,791

2,186

5,643

418

1,050

1,004

33,300

2013/14

8,350

8,200

7,100

2,250

6,050

400

950

34,250

2014/15

8,900

8,450

7,300

2,300

6,800

490

860

850

35,950

% change 2011/12

-23

-9

-8

-28

-4

-6

2012/13

-2

-8

-6

-9

-18

-22

-4

2013/14

-3

-4

-10

-5

2014/15

-9

-11

a = Actual

Economic

Forecast

December 2013

Engineering Construction Recent activity The volume of work done eased very slightly in the June quarter to an annual rate of $122.1 billion: 2 per cent less than in the same quarter of 2012. Forward indicators strengthened a little in the June quarter. In the year to June, 34 per cent less work was begun than was done; but at the end of June there was nearly 13 months of work yet to be done, compared with 11 months at the end of the previous quarter. In Western Australia there was 22 months work in the pipeline, in Queensland 12 months. Commencements fell sharply in the June quarter. However, the volume of work commenced in the year to June, at $82.4 billion, was only 3 per cent less than work commenced in the year to March. It was nevertheless 26 per cent less than work commenced in 2011/12, so activity is likely to continue trending lower in the year ahead. As the chart opposite shows, in the June quarter the year-to-date volume of commencements steadied in Western Australia and was not much changed in the other big states. The volume of work yet to be done increased by 5 per cent to $133.8 billion in the June quarter and was only 6 per cent less than a year earlier. Some 72 per cent of this work ahead is on mining and heavy industry. Following the sharp 35 per cent increase in 2011/12, activity rose by 7 per cent to $124.7 billion in 2012/13. It is forecast to increase by 2 per cent this year to a peak of $127.2 billion, and to fall by 7 per cent to $118.7 billion in 2014/15.

Engineering Construction Forecast: by State & Territory 2010/11 (a)

Value of work done, $ million, constant 2010/11 prices

NSW

VIC

QLD

TAS

ACT

Australia

18,470

11,189

23,873

4,670

25,189

960

928

769

86,047

2011/12 (a)

21,692

11,519

34,202

4,784

40,460

975

1,885

789

116,307

2012/13

22,892

10,489

39,210

5,694

42,183

1,084

3,461

724

124,736

2013/14

23,300

9,800

39,500

5,500

43,600

1,100

3,600

800

127,200

2014/15

24,000

10,200

35,150

4,460

40,000

990

3,400

500

118,700

103

% change 2011/12 2012/13

-9

-8

2013/14

-7

-3

2014/15

-11

-19

-8

-10

-6

-38

-7

a = Actual

New Housing In the year to March 2013, Australiaâ&#x20AC;&#x2122;s population increased by 397,400. Natural increase of 159,100 was 1 per cent higher than in the previous year to March and net overseas immigration of 238,300 was 10 per cent higher. Growth accelerated strongly in the territories and at a faster than average pace in Victoria and New South Wales. Growth in the year to March was 18 per cent greater than the average annual increase of 335,600 over the past decade, and was enough to lift the underlying requirement for new housing in Australia in 2013/14 to around 185,000. The trend in dwelling approvals rose in the September quarter in all states and territories except Tasmania. The rise was especially strong in New South Wales, where the trend in approvals was 35 per cent higher than a year ago. House prices have continued to firm. According to RP Data-Rismark, at the end of October prices were up 13.4 per cent in Sydney, 8.7 per cent in Melbourne, 5.5 per cent in Perth, 3.3 per cent in Brisbane and 1.1 per cent in Adelaide. Consumer confidence increased sharply after the election. Although it eased in October, the index rose by 2 per cent in November, recovering most of the October loss. Households nevertheless remained cautious about employment prospects and about their own finances. Following a sharp fall in the previous month, the â&#x20AC;&#x2DC;time to buy a dwellingâ&#x20AC;&#x2122; index rose by 4 per cent in November. Although this component of the index is 3 per cent lower than it was a year ago, it is 9 per cent higher than its long-term average. A further cut in interest rates, which we expect in the first half of 2014, will help to support confidence.

New Housing Forecast NSW

VIC

QLD

Value of work done, $ million, constant 2010/11 prices

TAS

ACT

Australia

2010/11 (a)

9,143

13,830

8,257

2,550

6,506

697

536

1,231

42,750

2011/12 (a)

8,547

13,638

7,178

2,222

5,541

578

561

1,345

39,610

2012/13

10,203

13,849

7,134

1,838

5,707

481

536

1,264

41,012

2013/14

11,400

13,500

7,650

1,970

6,900

410

610

1,160

43,600

2014/15

12,000

13,600

8,250

2,100

7,650

420

540

1,140

45,800

% change 2011/12

-6.5

-1.4

-13.1

-12.9

-14.8

-17.1

4.8

9.3

-7.3

2012/13

19.4

1.5

-0.6

-17.3

3.0

-16.7

-4.5

-6.1

3.5

2013/14

11.7

-2.5

7.2

20.9

-14.8

13.8

-8.2

6.3

2014/15

5.3

0.7

7.8

6.6

10.9

2.4

-11.5

-1.7

5.0

a = Actual

Consulting Matters Protecting your business

Professional Indemnity (PI) insurance—policy excellence In these highly litigious times, with your clients focused on risk avoidance and transfer, it is important that consultants take the time to review their risk profile and consider the terms of their Professional Indemnity (PI) insurance policy coverage. As with selecting a consultant, deciding on the right PI insurance cover requires careful consideration of many factors, not just price. Costs estimates • Whilst we recommend against giving costs estimates, from time-totime, consultants may need to give them. • Most PI policies will only provide cover for costs estimates given by qualified quantity surveyors. To provide relevant coverage we suggest that such a clause be modified to include suitably qualified professionals in your business. • We also recommend using very broad language when providing costs estimates and also set out the assumptions on which your estimate is made. Sub-consultants • A sub-consultant is a professional engaged by you and for whose conduct you are vicariously liable to your client. The sub-consultant may be in the same discipline as you, or a different discipline. • Some PI insurance policies do not provide any explicit cover for liability for sub-consultants. Others provide cover only in relation to sub-consultants who work in the same discipline as your practice— i.e. an engineer would only be insured for the work of an engineering sub-consultant, not a town planning sub-consultant. In either case you may have no cover at all for your vicarious liability for the errors of a sub-consultant.

Limits of indemnity – costs inclusive or costs exclusive • With an ‘exclusive of costs’ limit of indemnity (the preferred option) the insurer indemnifies you up to the limit of indemnity stated in the policy schedule. In addition the insurer will pay legal defence costs and expenses incurred in defending the claim up to the limit of indemnity. • With an ‘inclusive of costs’ limit of indemnity the insurer indemnifies you up to the limit stated in the policy schedule for damages and costs and expenses associated with your claims. Legal costs and expenses are paid within the policy limit and are not additional to the limit. Safety in design • In 2012 and 2013 Safe Design legislation was introduced in most jurisdictions around Australia which has placed obligations on a designer, such as an engineer, of a structure that “is to be used, or could reasonably be expected to be used, as, or at, a workplace” to “ensure, so far as is reasonably practicable” that it is designed to be “without risks to the health and safety of persons” including persons who use, construct and demolish the structure. • The relevant legislation is different in each jurisdiction but essentially this is a new obligation on designers which can result in prosecution and fines of over $1,000,000. • Some PI policies do provide cover for legal costs associated with defending safe design prosecutions. Some PI policies also now provide cover for civil fines and penalties that result from a successful prosecution. Alternatively, Statutory Liability, Directors & Officers Liability or Management Liability policies may provide some cover for fines and penalties.

• It is vital to talk to your insurance advisor before engaging subconsultants as you may need to seek amendments to your cover. Over time it is important to keep records of the type of professional sub-consultants you engage, and be sure to discuss with your insurance advisor whether you are covered for their errors.

Continuous cover

Proportionate liability

• Some insurers offer what is essentially a loyalty bonus—known as ‘continuous cover’ protection—to those consultants which remain continuously insured with that insurer for consecutive policy periods.

• Under Proportionate Liability legislation, consultants are now only held liable to a plaintiff for the loss they actually caused, rather than for the total loss caused by all defendants. Proportionate Liability legislation changes the common law of ‘joint and several’ liability. • One complication is that consultants can contract out of Proportionate Liability legislation in some states, such as New South Wales, and the ‘extra’ liability you assume by contracting out may not be covered by your Professional Indemnity policy. • Some insurers offer extensions on policies which ‘cover’ consultants even if they contract out of Proportionate Liability legislation. We would never recommend contracting out but sometimes there is little real choice, if, for example, you want to be considered a ‘complying tender’ on a project. We recommend you speak with your insurance advisor about whether such extensions are available for your business.

• With PI insurance, claims arising from circumstances which were known (or which ought reasonably to have been known) by the insured or a reasonable person in the insured’s position prior to the policy inception date are generally excluded from cover.

• ‘Continuous cover’ clauses offer policy protection for claims where, but for the failure to notify, the consultant would have been entitled to indemnity, subject to the terms and conditions of the policy in force at the time the claim ought to have been notified. ‘Overseas’ work • Most consultants would be aware of their jurisdictional (where the claim is brought) and territorial (where the services were provided) cover under their policy which is often world-wide excluding USA and Canada and their territories and protectorates. Some policies offer world-wide cover. • You may not be aware, however, that most policies will exclude claims determined under USA/Canada law or where the law of the

Protecting your business Consulting Matters

contract is US/Canadian, even if the work is in Australia. This is particularly relevant for embassy/consulate work and with standard contracts of US/Canadian clients. A prudent consultant will send their client drafted consultancy agreements to their insurance advisor to consider any PI insurance issues, such as those discussed above, that may arise because of the terms and conditions of an agreement. Of course, there are other terms and conditions in a PI policy which you need to consider but the above provides an overview of major areas where we do see significant policy differentiation between PI insurers. Simon Gray State Manager NSW/ACT Planned Cover (Formerly Planned Professional Risk Services) The information contained in this publication is of a general nature only and as such may not satisfy your individual needs or interests. Should you require more specific insurance or risk management advice, please contact your local office. The information contained in this publication is not legal advice. We recommend that you seek independent legal advice. You may circulate this publication among your staff, but otherwise it may not be republished or circulated in part or full without our permission.

TESTIMONIAL

LAMBERT & REHBEIN OFFERS CONSULTING SERVICES ACROSS ENVIRONMENTAL, AVIATION, CIVIL, STRUCTURAL, TRANSPORT, RESOURCE AND ENERGY AND HYDRAULICS DISCIPLINES FROM OFFICES IN CAIRNS, BRISBANE, SYDNEY, CANBERRA AND MELBOURNE. Lambert & Rehbein was prompted to sign up with Planned Cover (formerly Planned Professional Risk Services) in 2004 following a credible and persuasive recommendation from an industry colleague. Lambert & Rehbein has relied on Planned Cover’s services on a number of occasions—both with potential claims and contractual advice. The broker has consistently given them helpful counsel and provided relevant information without hesitation or delay. Their responses are tailored and provide the exact information sought by the firm. All documentation provided by the broker has been well thought-out and logical. At no point did Lambert & Rehbein need to follow-up and seek out assistance from Planned Cover—as the broker is consistent in proactively providing help and advice.

Professional Indemnity question? Consult Australia believes that it is important to support members in all aspects of their business. We also recognise the impact that the insurance market has on Consult Australia member firms in terms of availability, affordability and quality of Professional Indemnity insurance. Post your latest Professional Indemnity insurance cases on the Consult Australia Linkedin group and our PI Insurance Pathway will advise you on the best steps to tackle these issues.

Lambert & Rehbein would recommend Planned Cover to other member firms—something they have already done for several colleagues already. “Planned Cover looks after our entire business and I have no doubt that they ‘have our back’ in every way. Their approach to customer service is more a consultative discussion as they work to understand our requirements and ensure their services match accordingly. This is a refreshing point of difference. They are an exceptional broker and I would have no hesitation recommending them.” Brent Woolgar Managing Director Lambert & Rehbein (SEQ) Pty Ltd

BRIC

Bovill Risk & Insurance Consultants

Protecting Professionals

Consulting Matters Business essentials

Beneath the headlines—gender pay equity, why we should care The headline statistics on gender pay inequity are often so aggregated that they may actually harm the cause they seek to promote. It is easy to assume that what appears to be inequality can be attributed to other factors such as, for example, senior female under-representation and role choice. While these are undoubtedly considerations, a preliminary review of Aon Hewitt’s remuneration databases1 suggests they do not offer a full explanation. We can reveal that across the market as a whole, women are paid less than men at the same organisational level, in the same role. A ‘male premium’ is apparent at every career level.

It’s not just about seniority Females form an increasingly smaller part of the workforce as organisational seniority increases. In Australia, currently females comprise only 12 per cent of ASX200 executive managers2 while in the Consult Australia database, females comprise only 6 per cent of the executive manager population.

SOURCE: Consult Australia Remuneration database – April 2013

Analysis of our Consult Australia database (shown in the chart above) reveals that while the male premium is evident in sub-industries where the female population is almost as high as that of males (e.g. Science), it is also distinctly visible in the sub-industries with the lowest rates of female representation (e.g. Engineering – Mining). That is, irrespective of sub-job family, there is a 4-47 per cent pay differential across the sector. It seems that women are paid less than men in similar roles.

It’s not about performance

SOURCE: Consult Australia Remuneration database – April 2013

Given that a sizeable and increasing portion of market pay is variable and performance-based, it stands to reason that a gender bias in assessing performance would contribute to inequitable pay levels. However this explanation is not supported by our data. Across the market, performance outcomes are remarkably similar across genders. As shown below in the chart, female and male performance is evaluated similarly.

The theory that average pay equity differentials are caused by more highly-paid executive men in the sample is inconsistent with our findings (shown above in the chart) where there is a market gender pay gap at almost every career level3 —that is, across most of the industry, women are paid less than men at the same organisational level. Interestingly, we are seeing larger differentials in the general industry than in the Consult Australia database, which is not what you expect to see given that the database suggests males outnumber females four to one.

It’s not just about career choice There are well-documented cases of lower market rates of pay for job families with a heavily female-dominated workforce, such as in the caring professions.

SOURCE: Consult Australia Remuneration database – April 2013

Consulting Matters

The Consult Australia Salary Survey The Consult Australia salary survey is exclusive to members and has delivered tailored remuneration advice for over a decade. Covering engineering, architectural, scientific, surveying, planning and project management roles, it is the only survey specific to the consulting industry. Thereâ&#x20AC;&#x2122;s still time to sign up for 2014. Contact consultaustralia@aonhewitt.com today to learn more.

Consulting Matters Business essentials

Females are more likely to have a salary that is under market and less likely to have a salary that is significantly above market peers than their male counterparts.

It may be linked to expectations —manager and individual Our database statistics do not necessarily mean that managers consciously take gender into account in setting pay. The existence of unconscious bias in gender issues is well-supported by research. In the case of setting pay, we know that managers are influenced by an individual’s expectation for pay and by the likely retention impact of remuneration decisions. There is also much commentary about women’s reluctance to make the same demands of their employer as their male counterparts—around career progression specifically, but presumably also pay. Is it therefore possible that women’s lower expectations are resulting in unconsciously biased remuneration allocation? Our database provides two interesting insights on the matter: • Females are more likely to have a salary that is under market and less likely to have a salary that is significantly above market peers than their male counterparts. Pay Position vs Market

Significantly under market (<70% - <90%)

At market (90% - <110%)

Significantly above market (110% - <130%)

% of all males % of all females

22.%

51%

27%

28%

52%

20%

• Considering short-term incentive payouts versus targets, we see a 13-18 per cent difference in percentage points (shown in chart below) in favour of males across the performance rating scale.

This year-on-year approach can perpetuate an existing gender gap. To close the current 5.5 per cent fixed remuneration gap at the experienced level, for example, females would have to achieve an annual salary increase of 1.5 times that of males for at least 5 cycles4.

Further research required We have yet to test the impact of organisation on gender pay data within our database. We should be clear that a market gender pay differential does not necessarily point to issues within organisations themselves—the pay patterns for different industries and the female propensity towards smaller companies plays a role in market gender pay studies. However, we cannot rule out the existence of bias. Our data strongly suggests that gender pay inequity—same level, same role, same performance—is real across the Australian market.

Recommendation Gender pay equity is a complex issue. It is critical to fully understand the factors affecting your organisation. We recommend that organisations should seek to understand pay differentials from as many different perspectives as possible: 1. Understand your data: What are the gender differences in fixed remuneration and incentive payments? What role does job family and seniority play? Consider distribution of pay outcomes— averages can mask key trends. 2. Assess root causes: What role do female representation, tenure and career breaks play? Is performance adequately assessed? How do your managers factor in individual expectations when setting pay? Establish reporting protocols to reduce the potential for unconscious bias in people programs. 3. Look beyond your organisation: Does internal job evaluation align to external market pay rates? Does benchmarking solely within your industry result in gender-bias? Knowing the industry and market experience of gender pay differentials can assist in interpreting your outcomes. In short, organisations should seek to get behind those headline numbers.

Aon Hewitt

Aon Hewitt has been collecting gender along with individual remuneration survey data since 2010. While our survey databases do not comprehensively represent the Australian market, with 121,647 lines of survey data from over 518 organisations across most industry sectors for the general industry, we believe it to be a robust sample.

Source: Australian Government: Department of Family, Housing, community Services and Indigenous Affairs http://www.fahcsia.gov.au/ our-responsibilities/women/publications-articles/economic-independence/ the-leadership-challenge-women-in-management?HTML#1.1

SOURCE: Consult Australia Remuneration database – April 2013

Closing the gap is unlikely to happen without intervention An important factor to consider in gender pay equity is that remuneration review processes are cumulative, and often focus on percentage increases rather than absolute dollar outcomes.

very career level except “entry level” and “Intermediate” which includes E graduates with < 1 year – 4 year’s experience.

ssumes male salaries progress at the forecast budget for 2013/2014 of 2.5 A per cent. Source: Aon Hewitt Consult Australia Pulse Survey – May 2013

Business essentials Consulting Matters

Collecting employees’ personal data Some in the industry have noticed a trend for clients to require consultants to include the company’s employee diversity data in tender documents. Anecdotally, it appears to often be public agency clients that require such information. This short article provides some guidance on how and when employers can collect employee data, and directs the reader to relevant privacy laws. The Office of the Australian Information Commissioner (OAIC) is an independent Australian Government agency established under the Australian Information Commissioner Act 2010. It says that there are 10 National Privacy Principles (NPPs) which regulate how large businesses, and some small businesses, handle individuals’ personal information. (Note that the NPPs will be replaced by the Australian Privacy Principles (APPs) on 12 March 2014.)

Although the NPPs are more about what a company must do with regard to data collection, the Australian Human Rights Commission (AHRC) suggest some key factors for ensuring that employees are happy with the way employers collect and use data. In particular, companies may consider being clear about why they are collating the information, how the information is going to be used, for what purpose it is being collected, and whether the company will tell employees these things when collecting the data. With regard to issues of consent, considerations include whether or not the data is to be provided voluntarily, whether it will be provided on an anonymous basis, and whether there may also be issues about privacy.

of sexuality, and these can be adapted to other subjects. One good product comes from Stonewall, a British charity, which has produced a booklet called What’s it got to do with you? i that can be used to help encourage individuals to provide personal data in surveys. Another is Improving Sexual Orientation Monitoring ii by the UK Equality and Human Rights Commission.

Jonathan Russell Consult Australia i

http://www.stonewall.org.uk/at_home/3460.asp ttp://www.equalityhumanrights.com/uploaded_ h files/research/improving_sexual_orientation_ monitoring_v6_22-12-10.pdf

There is a greater number of publications around that explore this topic in the context

Flexible working: why the time is right for industry to embrace change Dual income families, more sole parents and an ageing workforce now dominate the Australian community. The Baby Boomers are redefining the concept of retirement and Gen Y expects flexibility in the way they work from day one of their careers. The traditional working model of a fixed place of work with a lot of ‘face time’ emerged out of the Industrial Revolution and suits fewer workers today than ever before. In addition, the technologies available now allow a lot of work to be done in virtually any location and at any time. Recent research reveals that both high potential men and women utilise flexible work practices at a similar rate, which busts the myth that it is only women who want and

use flexibility at work. They also found that in organisations where flexible working was not available, women in particular downscaled their aspirations for leadership positions; shedding light on the industry-wide problem that female engineers leave the industry midcareer. It is recognised throughout research that a diverse workforce (in terms of gender, culture, age and other factors), brings a broader range of skills, motivation, thoughts and inputs that drive productivity both for Australia as a whole and also at the individual business level. A flexible working culture is more likely to attract and retain a diverse range of employees who aspire to the top of the organisation.

Recent research reveals that both high potential men and women utilise flexible work practices at a similar rate, which busts the myth that it is only women who want and use flexibility at work.

Companies looking for ways to cut costs and drive up efficiency can turn to flexible working practices for help, and at the same time improve employee engagement. Examples include: 1. Working remotely reduces overheads of office space and conditions. It also benefits employees who no longer need to commute to work and pay for transport and parking costs. 2. Technology reduces requirements to travel (mainly interstate). Using the right technology, employees can link into meetings virtually from a remote office location or home. Employees who are not mobile because of family commitments may continue to fulfil the workplace demands. 3. By increasing part-time work through the promotion of 0.9 Full Time Employment (FTE) as an option for permanent employees, companies can reduce their salary costs while retaining the skills and knowledge in their workforce and

Consulting Matters Business essentials

5. Flexible start and finish times provides all employees with flexibility in the way they manage their work and other commitments. It is particularly valued by employees with care responsibilities (child and/or elder care).

work options may extend their careers rather than fully retiring, which can help companies offset skills shortages expected when the Baby Boomers retire. Employees who reduce their hours by switching to part-time may also increase their hours to support companies in growth periods. Companies with established cultures of flexibility will be better able to retain their talent while tapping into the broader pool who are seeking alternatives to the traditional full-time ‘face time’ work.

A flexible working culture provides companies with greater agility, which allows them to quickly respond to an upturn in the market. Mature workers retained through flexible

Flexible working is now a significant employee benefit and companies are embracing it to improve productivity and reduce costs. The research also indicates that flexible working

supporting their employees to achieve greater work/life balance. 4. Offset redundancies by using flexible working as an alternative to losing valuable employees via retrenchment.

is central to employee engagement and in creating more inclusive and diverse work places. It also provides an opportunity to reduce costs and improve workforce agility for future growth. For success, companies need to ensure that flexible working is genuinely reinforced from the top and throughout the organisation, and is supported by a communications and change management plan. Lucinda Hewitson Director Lucinda Hewitson Consulting

Flexible workplace arrangement Matt works a four day week—with every Wednesday off to look after his 10 month old son: his ‘Daddy Daycare’. “With my flexible work arrangement, I can spend all day once a week with my son, and we are forming a strong bond.”

Positively. As per the norm, everyone is just focused on doing what is required to deliver our projects successfully—whether I am there to oversee or not.

What is important to you about your work?

What do your friends and family think about your working arrangements?

Doing a good job by delivering a quality product to the client on time and on budget.

They love it. Many of my friends are openly envious, saying things like, “I wish I could do that”.

What are your priorities out of work? My family, my vegetable garden, my health and fitness—and my bike! Has flexible working helped you achieve a greater balance in your life?

Matthew Thomson Senior Structural Engineer in Resources & Manufacturing Aurecon

How have people at work responded to these practices?

Absolutely. I spend all day with my 10 month old son, and enjoy taking him to morning swimming lessons each week—something I could not do without this flexibility. We are forming a strong father/son bond as a result. What challenges have you faced working this way? Mostly challenges to my own prioritisation and organisational skills in knowing I must complete X, Y, and Z by each Tuesday afternoon to ensure the projects I am working on keep moving along smoothly in my absence.

What are the benefits to Aurecon to you working in this way? With the help of my design teams, I can still deliver my projects and Aurecon saves on my salary. Plus I am leading by example, showing others that flexible work practices can and do work very well—and benefit both the employee and the employer. Through the flexible work practices I have been provided by Aurecon I am happier with my new work/life balance. Do you think other people with demanding jobs/lives can apply flexible workplace practices successfully? Absolutely, with the right support from their organisation, the ability to enjoy the benefits of flexible work practices can definitely be successfully applied to others.

Business essentials Consulting Matters

Rail Industry Worker Competence Management System Facilitated by the Australasian Railway Association (ARA) on behalf of its members, the Rail Industry Worker program is a competence management system that aims to establish a cohesive, national approach to competency management for contractors working in rail. By law, every contractor and staff member working on the network must be able to provide proof of competency. The Rail Industry Worker System provides the vehicle to allow Authorised Rail Operators (ARO’s) and Rail Infrastructure Manager (RIM’s) to comply with the conditions of the Rail Safety Act. Background The original Rail Safety Worker (RSW) Project commenced approximately four years ago, initiated by Australian Rail Track Corporation (ARTC) and RailCorp (now known as Transport for NSW). Recognising the importance of compliance with the Rail Safety Act and worker competence and identification, the opportunity to progress a Competency Management System for contractors evolved. Consultation with key stakeholders was regularly undertaken to involve them in all aspects of the project, including meetings with rail regulators, contractors and alliance partners, and fortnightly meetings between ARTC and RailCorp. For the first two years, a Joint Steering Committee meeting was held every six to eight weeks, where senior members of each organisation reviewed and discussed alignment of minimum competency requirements, associated business rules, and system implementation. Competency matrices with supporting procedures and assessment documents were identified for nine functional categories of Rail Safety Work as a priority being Communications, Safeworking, Plant and Equipment, Network Operations, Track and Civil, and Structures, Engineering, Project Management and Signals.

phase of development will continue to focus on Rail Safety Worker Contractors, however the system does have the capability to expand on this scope in the future. The ARA Governance Committee formed in May 2012 was comprised of eight organisations that have committed to the project, including ARTC, RailCorp, Metro Trains Melbourne, Department of Planning Transport and Infrastructure SA, Queensland Rail, Aurizon (formerly QR National), John Holland and V/Line. Collaboration has been very positive with consideration given to the requirement of each state and organisation to achieve outcomes that will work for all parties across Australia. A national business rules framework i has been agreed and the committee is now focussing on alignment of matrices for rail safety worker roles and functions. Whilst the ARA is supporting the system as a means to streamline industry expectations of worker competence, the minimum standards for competence and compliance remains the responsibility of each individual operator. The system is only a means to implement the terms and conditions that are outlined in the individual contract between a contractor and the principal operator; it is not the driver of the rules. For specific requirements and information it is best to visit the operator’s website. Other general updates and communications will be posted on the Rail Industry Worker website.

Applying the Rail Safety Worker Project to consultants In October 2013, the ARA provided an update to clarify how the Rail Safety Worker (RSW) Project and the Rail Industry Worker card should apply to consultants. The ARA says that, as a general rule, Rail Safety Workers are people who: • work in the rail corridor

Governance committee

• work on rollingstock or infrastructure

The original RSW project created a foundation for a program that was transferrable to other organisations and across state borders. This provided industry with an opportunity to work as one through the ARA to take the initial competence management system to a national level. Officially launched in March 2013 and now housed under the ARA umbrella as ‘Rail Industry Worker’, the first

• design, certify or commission rollingstock or infrastructure • make decisions that impact on rail safety. In the case of design houses, the ARA governance committee has agreed that any persons responsible for the design

The system The online registration portal ii allows contractors to register and upload documentation to support their competencies against a Rail Safety Worker position and the process populates the information in their individual profile within a sophisticated database. Documents are verified and each worker is required to undertake a 100-point identification check before they are provided with a Rail Industry Worker card, which contains a unique identification number and printed watermark for security. It is important to note that the card is simply an output of the complex database behind it, which is the key to the whole system. Industry sets the competency requirements and rules and the system is the implementation vehicle. For more information, visit the Rail Industry Worker FAQs webpageiii http://www.ara.net.au/UserFiles/file/Publications/ National%20Business%20Rules%2031%2004%20 13.pdf

http://www.railindustryworker.com.au/

iii

http://railindustryworker.com.au/faqs

sign-off process are considered to be rail safety workers and will need to register in the system—for example the designer, checker, independent reviewer and approver are all part of the process and all must register. During this process you will be asked to provide proof of competence and undertake a 100 point ID check at Australia Post before a card will be issued. As outlined above, not all the employees in a design house will be required to register on the Rail Industry Worker system. If you are unsure about the requirements pertaining to your business, please contact the relevant operator. This advice is in the News section of the ARA website, and can also be seen via: http://railindustryworker.com.au/news/ update-for-design-houses.

Consulting Matters Corporate social responsibility

Seeking refuge in the desert Azraq is designed around a small-scale ‘village’ layout, intended to help families and neighbours reunite and live together, and reduce the distances people have to walk for water and other essential services.

A REDR AUSTRALIA CIVIL ENGINEER HELPS TO BUILD NEW CAMP FOR SYRIANS FLEEING CONFLICT Two years ago what is now Jordan’s fourth largest city was an empty expanse in the desert. Now, an ever-expanding grid of tents and temporary structures stretches on for kilometres, and the Za’atari refugee camp is buckling under the strain of its constantly growing population. Soon the country’s fifth biggest settlement will also be a tented city, as construction works for another camp, Azraq, near completion. Hundreds of aid workers and local contractors are in a race against time to finish the Azraq site, set to become home to more than 100,000 Syrians escaping the escalating war engulfing their country. “Conditions at Azraq are incredibly tough,” said Nagendra Adhikari, a Sydney-based civil engineer who recently spent nine months in Jordan. “Some of the surrounding slopes are on a 30 degree angle, making it very difficult to erect shelters and other camp infrastructure. The area is also extremely exposed with no shelter or shade, and strong winds often sweep through—up to 70km per hour.” Nagendra was deployed by RedR Australia, a not-for-profit organisation which provides skilled people to international relief agencies during humanitarian emergencies. Working with the United Nations Refugee Agency UNHCR, he steered a project to expand Za’atari—originally built for 60,000 people and now hosting more than double that figure—before shifting his focus to the 15km² Azraq site. After leading the design, Nagendra supervised the early construction stages as the camp’s infrastructure took shape. “The scale of the Azraq project is mind-blowing,” said Nagendra. “Roads, water and sanitation, shelters, and community and administrative buildings all need to be constructed and integrated before the camp can open its gates and start accepting refugees.” Azraq is designed around a small-scale ‘village’ layout, intended to help families and neighbours reunite and live together, and reduce the distances people have to walk for water and other essential services. Each village has a kitchen, gender-segregated latrines and washing areas, a health clinic and recreational areas, with residents given ownership over their surroundings. Nagendra is preparing to return to Jordan to oversee completion of the camp, including the design and construction of additional infrastructure. He’ll also be responsible for managing the construction of hundreds of transitional shelters—semi-permanent structures that provide more comfort and stability for families than tents. The unfortunate reality is that Azraq is being constructed as a long-term home for refugees, rather than a temporary haven, said Nagendra. “It’s unlikely that Syrians will be able to return to their country for months, probably years.” “Even with an end to the fighting, it will take decades to rebuild. Sadly, for the people of Syria, there is no end in sight.” RedR Australia Top left: Nagendra with UNHCR’s representative to Jordan and fellow Australian, Andrew Harper Left: Prefabricated transitional shelters are offloaded at Za’atari. Similar structures are being planned for Azraq Opposite page: Nagendra meets a Syrian family at Za’atari refugee camp, currently home to more than 130,000 people

Consulting Matters

RedR Australia is a humanitarian organisation which provides skilled people to international relief agencies in disasters and emergencies. The organisation receives funding from the Australian Government as part of its commitment to international humanitarian response. RedR Australia is also a leading provider of humanitarian response and preparedness training. For more information, please visit www.redr.org.au

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Harbour Bridge achievement stands test of time Icon is a four letter word much abused and over-used, particularly in the tourism industry. But even the most pedantic lexicologist would agree that Sydney Harbour Bridge is an icon, defined in the Macquarie Dictionary as “very famous and well known, and believed to represent a particular idea.” The Bridge fits the criterion so well that in Barcelona in September this year the International Federation of Consulting Engineers (FIDIC) gave Hyder Consulting its Centenary Award for Australia for the country’s major civil engineering project of the last 100 years—Sydney Harbour Bridge. Starting with Francis Greenway in 1815, the idea of a bridge spanning the harbour had been mooted, but nothing happened until a couple of engineers saw a way to build the famous coat hanger that we now see on everything from t-shirts to travel ads. Following Federation in 1901 the idea of a cross-harbour link was moving along just ahead of snail’s pace. However a firm

decision was made—and that was to make the decision between a bridge, or a tunnel. Tenders were called twice, without results, but in 1911 it was decided a bridge would be built. NSW Chief Engineer, John Bradfield was brought in to start the planning. Things were looking good, but along came World War One and priorities moved elsewhere. Fast forward—sort of—to 1920 and Bradfield was back on the case once more—preparing three concepts; a cantilever bridge, a suspension bridge and a cantilever arch. By 1924, six firms had submitted 20 designs but not without incident. The chairman of one of the leading contractors died during the tendering process and the company withdrew. Fortunately its engineer, Ralph Freeman convinced Dorman, Long and Company to step in at short notice and it presented seven different designs, which was done, according to Freeman, “because of the uncertainty regarding the real intention of the specification.”

Bradfield, perhaps unsurprisingly, liked the Freeman design based on the great arch he himself designed. A decision was made at last, but the argument continues as to who should be credited with actually designing the coat hanger on which Australia hangs its image— at least until the Opera House came along. Naming honours went to the public servant with the bridge’s paved section and approaches still called the Bradfield Highway. Where you stand on who designed the bridge probably comes down to whether or not you’re a fan of honouring government or non-government engineers. The best compromise is to give both credit—Bradfield as what would now be called the Client Representative for the concept and Freeman as the Consultant for actually producing the detailed design. In the UK, Freeman Fox Consulting Engineers had merged with John Taylor in 1988 to become ACER. ACER acquired Wargon

Our industry Consulting Matters

Left: View from McMahon's Point Top: Centre Joint Top Chord-West Truss Top right: View from Lavender Bay Photos courtesy of NSW State Records

NSW Chief Engineer, John Bradfield was brought in to start the planning. Things were looking good, but along came World War One and priorities moved elsewhere.

Chapman and then in 1990 became Hyder thereby establishing a permanent presence in Sydney. In 1932 the Harbour Bridge was opened and by 1988 the government had paid off the debt on it. By then politicians were dreaming underwater and in a rare burst of speedy decision-making, the privately financed Sydney Harbour Tunnel (concept developed by Wargon Chapman) opened in 1992 and will be returned to the NSW government a decade from now; debt-free and with at least 70 years’ life still in it. But an iconic tunnel? Hardly. Looks rubbish on a t-shirt or a postcard. But this year, at over 80 years of age, the bridge still rules the sector, and Hyder—having passed its 200-year anniversary globally—has now added an international award of the century to its trophy cupboard. Hyder Consulting

The International Federation of Consulting Engineers (FIDIC) at its centenary celebrations presented Hyder with the award for major Australian civil engineering project of the last 100 years for the Sydney Harbour Bridge. The FIDIC Centenary Awards recognise and applaud the best consulting engineering achievements of the last 100 years (19232013), to help publicise the work of consulting engineers and the contribution they make to society. Hyder’s Australasian Managing Director, Greg Steele said that the international award demonstrates the importance of the Sydney Harbour Bridge as an engineering feat that has stood the test of time. “This award is quite incredible if you consider that the Sydney Harbour Bridge was built more than 80 years ago and has been recognised for being the best major civil engineering project in the world for the last 100 years,” said Mr Steele.

Consulting Matters

Sydney Opera House:

A modern icon for all generations The white sails of Sydney Opera House are an emblem and an icon for not only Sydney, but Australia. The unique, glistening structure is right up there with koalas and kangaroos for international visitors to the country. In fact, Sydney Opera House welcomes 8.2 million visitors and hosts approximately 1,700 paid performances every year—making it one of the busiest tourist and cultural attractions in Australia. It was a meeting in 1954 between the conductor of the Sydney Symphony Orchestra, Eugene Goossens and NSW Premier, Joseph Cahill that set the wheels in motion for the famous structure. Sydney needed an opera house; a space that would become the central hub for Sydney’s arts and culture scene and a draw card for the world’s best performances and stories. An international competition was called to source the design that would entice Aussies from the beach and into the new opera house. Over 220 entries were received from all around the world over a 12-month period. Entry number 218; a rendering reminiscent of the structure that stands today by Danish architect Jørn Utzon was unanimously declared the winning design that would bring culture to the fore in Sydney. Brought into the mix was English Danish engineer, Ove Arup and his firm based in London. Relocating to Sydney, Ove and his

team worked with Utzon to tease apart the geometry of the building and find a design solution that would allow the concrete structure to float, seemingly effortlessly over the headland. The project was marked by politics, set-backs, budget issues and personal differences—all famously documented in the media at the time and as part of the folklore attached to the shining white building. Yet, despite the complexities and the issues, Sydney Opera House was set to turn traditional construction practices on its head. Case in point is the design and construction of the roof. It took approximately four years to find a solution, and much to-ing and fro-ing between the architect and the engineer, Arup challenging each other constantly to come up with a design that worked and was beautiful. Finally, the shape and form of the white sails was achieved based on the geometry of a sphere which allowed the production of arched segments that could be precast and lifted into place.

This innovation was one amongst many, including the use of computer-based three dimensional positioning, life-cycle engineering and geothermal pumps. As the first building of its kind, Sydney Opera House certainly challenged the team to find innovative ways to bring the building to life for the official opening in 1973—over time and over budget but much loved by all. Sydney Opera House today continues to evolve and still pushes the boundaries of what is possible. At this moment, there are approximately 1,200 people working (directly and indirectly) on the Vehicle Access and Pedestrian Safety Project—which will remove vehicles from the forecourt to a

Consulting Matters

Sydney Opera House was honoured at the International Federation of Consulting Engineers’ (FIDIC) Centenary Awards as one of the top major building projects that have made a significant contribution over the last 100 years. Ove Arup (who was also recognised by FIDIC during the awards) and Jack Zunz described the project in an article in the Structural Engineer, March 1968, as “a dream that never was, a structure that could barely be built, an architectural tour de force, a politician’s nightmare, a population’s talking point and much more.” new underground loading dock. This is the largest project at the Sydney Opera House since 1973 and will be completed while the theatres, restaurants and bars remain fully operational and open to the public. Investing in new technologies such as Building Information Modelling (BIM), continual reviews of the services and facilities will ensure that Sydney Opera House remains a modern and relevant icon for future generations. Arup

The acknowledgement coincides with the 40th birthday celebrations for the Sydney Opera House, and along with the UNESCO World Heritage Listing from 2007, is testimony to the enduring nature of the striking design and the indelible mark it has left on the city of Sydney. Sydney Opera House certainly has become much more, not only for the people of Sydney and the visitors that flock to the building every day, but also to the consultants and all the people who were instrumental in creating a structure that remains as tantalising now as it did when it was first conceived.

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Consulting Matters Our industry

Modern thought processes for road and infrastructure design The application of Building Information Modelling (BIM) within the building industry has been adopted to the extent that dedicated positions are maintained for the process, with many projects stipulating adherence to BIM standards as an official requirement. ‘BIM for Infrastructure’ is a regular discussion topic as a logical evolution from this, with a major focus looking at the benefits of improving collaborative workflows.

Early adopters are already succeeding in this area and enjoying the benefits from both an efficiency and a market positioning context. The expectation is that the BIM collaborative process will become the default method of project delivery for infrastructure projects, as the extended design community adopts the standards and stakeholders realise the benefits. The amazing growth in computing power in the past few years was illustrated recently, when an article revealed that the NASA Voyager 1 (which had just officially exited the solar system) had a fraction of the power of a smartphone. “By today’s standards, the spacecraft’s technology is laughable: it carries an 8-track tape recorder and computers with one240,000th the memory of a low-end iPhone.” New York Times 2013, In a Breathtaking First, NASA’s Voyager 1 Exits the Solar System

From the perspective of infrastructure design, the time to finish a job has not improved with the phenomenal growth of the microprocessor power. A major contributor to this is that the finished production drawings are vastly more complex and detailed than previous standards, so as the efficiency of design software improves; the outputs become more demanding to effectively negate large portions of the potential time gain. Furthermore, many of the current design processes are still using the ‘older’ way of thinking. Early versions of design software were structured to automate or improve tasks within the familiar pen and paper-based process. The storage and processing power of available technology was not capable to do

much more, and the framework for developing fundamental new thought processes was not mature enough. In today’s world, the computing power most definitely exists and the frameworks for designing in context, as well as collaborating with location-based devices (apps on smartphones), is available and understood intuitively by the public. While new interpretations of technology are constantly being applied in the gaming industry, the software used for infrastructure design has not evolved as effortlessly.

The 3D environment The 3D environment needs data such as Geographic Information System (GIS), Point Clouds, and other relevant sources to bring as much perspective to the design as possible. The design process then allows visualisations of the concept to be shared early-on, so the feasibility of various scenarios can be evaluated and adjusted before the detailed design documents are produced. Ultimately, the 2D plans can be produced from the 3D model. Flexible workflows allow different stages or portions of the design to be transferred to different software packages as necessary. The electronic model used to generate the drawings is requested in most cases, as it helps the client interpret and interrogate the design. There is a level of risk from the designer’s perspective in having the model misinterpreted, but the expectation of also providing the 2D drawings has become an unofficial requirement that is usually accepted.

Our industry Consulting Matters

in the cloud as a single point of truth (with multiple options/scenarios) so that the collective decision-making process can be done efficiently. The collaboration process can also include viewing options for the general public to help them visualise and understand the design proposal and allow feedback, if relevant. Workflow scenarios

One interpretation of the need to maintain the 2D drawings is that if (as an example) the electronic systems for setting out surveys fail, a backup ‘plan B’ is in place. The old-fashioned process can still work from the drawings to achieve this. The expected trend as we move forward is that the 3D models will become the norm for deliverables, with the 2D blueprints available as necessary.

Workflow scenarios The current premise is that the infrastructure component of a major design needs input from architects and owners in terms of layout. This process can be difficult and timeconsuming if the correct framework is not set up. Ultimately, the collaboration needs to occur in an environment where all relevant parties have access to the data and can easily visualise the proposal. Designers are often more comfortable creating the detailed design in the familiar 2D environment. With this in mind, the workflow process can be customised to incorporate the ‘best of both worlds’. In this scenario, the design is initiated in the 3D environment and then transferred to the familiar 2D environment for final design, before being returned to the 3D realm for visualisation purposes using augmented reality. The reality is that the workflows will vary for each scenario and the trap of using ‘funky’ tools just for novelty purposes needs to be avoided. Scoping the requirements for individual parties is the key to setting the correct expectations and processes. The design aspect of this process can be scoped as a technical exercise with input from relevant business angles. This is a logical extension of the current procedures. The collaboration side of the process is, in many ways, an unknown quantity as many businesses get by without formal processes in this area. The term itself can sometimes be misused and misunderstood but if positioned correctly, collaboration can represent the most tangible benefits for the business for both the short and long-term.

Collaboration Collaboration has always been the fundamental challenge with design processes involving multiple groups. An illustration of this is the confusion that occurs in the process of planning and designing a subdivision development. • The layout concepts that are initially produced may not be considered in an engineering context. They can sometimes be hand-drawn sketches or simple layouts to illustrate the early thought processes, as opposed to the details of construction and design. • Taking the concepts and applying an engineering process is often inefficient, as the two parties are taking different perspectives on the same challenge without a single point of truth to refer to. • Relevant perspectives from major parties such as the owner, construction manager, program planner etc. are not considered early enough in the process. Often more stringent legal contracts are set up in an attempt to avoid this confusion. While this can help to enforce companies to cover their exposure to risk by sharing less information, it does not address the fundamental issue of enabling the multiple groups to work together and share information in a collaborative environment. Software now exists within the cloud to enable this. • The software does not have to be installed on everyone’s computer—owners and managers can view and make constructive comments. • Mobile access allows the proposed design to be viewed in the augmented reality environment onsite during the design process, as well as the checking of details during construction. This provides specific functionality for all parties to provide feedback and comments at any stage during the design and construction process. • The concept and detailed designs can exist in the same 3D platform with intuitive tools for simple layouts as well as detailed optimisations. The model can be updated

The desire to integrate BIM into the infrastructure space has existed for several years. Progress has been made by early adopters, but traditional processes still dominate the vast majority of projects. In considering how this will evolve in the near future, the following points need to be understood: • The software now exists to approach infrastructure design in a new and more fundamentally powerful fashion. • Existing thought processes and traditional approaches need to be adapted to harness the new functionality available. The key is scoping the requirements of the project(s) to establish the areas that can be improved upon. This can then be considered within the context of benefits to individual groups, as well as a general streamlined process with greater flexibility and longevity for modern BIM standards. A potential transformation is not expected to occur in one sudden moment. The approach is to consider relevant areas of a thorough scoping report, and establish workflows to incorporate improvements over realistic timeframes.

Sean Twoney ANZ Consulting Manager A2K Technologies

Consulting Matters Industry comment

A word about diversity Workforce diversity has become an essential business concern across the resources market and while women continue to make steady inroads into the boardroom many organisations still don’t have critical mass of women in key positions of influence.

Many companies within the built environment industry have already taken great steps to redress imbalance—particularly in the past decade—but there is plenty of room for improvement and women within the industry can be great champions for change.

Workforce diversity is critical to business success. There are sound business reasons for recruiting, retaining and recognising the potential of women and there is a significant body of research that points to the fact that a more diverse business delivers better commercial return over the medium to long-term. Diversity across gender, culture and generational platforms also allows us to operate with a keener understanding of the community we serve and increases our capacity to innovate across local and global markets.

At Parsons Brinckerhoff, our success as a business is shaped by our values of integrity, teamwork, excellence and respect and our culture of high performance. Inclusiveness also shapes this success; a positive result for me will be when we no longer have to analyse targets and metrics as diversity will simply be an outcome of how we plan, operate and deliver to our clients and to the communities in which we work and live.

The make-up of the successful team I lead demonstrates the value of diversity; with a 40 per cent female ratio and the broadest range of disciplines across our business including an accountant, chemist, planner, engineer and a mix of the sciences.

Tessa Ogle General Manager for Oil and Gas Parsons Brinckerhoff

Tessa Ogle was recently named New South Wales winner of two 2013 Telstra Business Women’s Awards – the Private and Corporate Sector Award and the Young Business Women’s Award. Tessa has worked with Parsons Brinckerhoff since 2005, and is committed to contributing to industry change and counts diversity management as one of her primary areas of focus. Since the position of Market Analyst was newlycreated for her in 2005 she has been also recognised as the first female Business Development Executive and General Manager for Oil and Gas. Tessa currently heads up Parsons Brinckerhoff’s NSW Diversity Council and professionally mentors emerging professionals across Australia. Telstra judges were impressed by Ms Ogle’s strong strategic vision and commitment to drive change in her industry.

What do you think is the most pressing issue our industry is facing? Submit an Industry Comment to Consulting Matters today. Send your comment to our Editor (max 200 words) at gillian@consultaustralia.com.au.

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