Winter 2013 Consulting Matters by Consult Australia

WINTER 2013

Winning new business Budget 2013

a Yellow Brick Road to the Federal election

Brookfield Multiplex Using collaboration for successful

project delivery What your firm can learn from NAB’s

‘Break Up’

It’s always good to be first. 2

Consulting Matters

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Consulting Matters

CONTENTS Protecting your business Economic Forecast June edition

Is the limit on your Professional Indemnity insurance policy enough?

Business essentials Breaking down gender barriers

Respected, but not feared

Mental health and WHS

Corporate social responsibility Building bridges with Africa

Engineering a play space like no other 64

Winning new business

Our industry

Art Deco meets modern – preserving the historic exterior was a priority. Photo courtesy of NDY

Industry updates

Features

Industry updates

BRW Client Choice Awards 2013

What’s on in our industry

What’s happening at Consult Australia From the President

From the CEO

Cathedral of commerce Emporium Melbourne

The Sustainable Industries Education Centre (SIEC)

Urban Reform Project

The black and white of Green Star

How NAB’s ‘Break Up’ changed banking in a single day

Known for what you know

How profile builds profile

Upfront collaboration the key to successful delivery of projects

Why Infrastructure Sustainability is good for your business

Three characteristics of a winning professional services firm

Environmental consultants and agility

Why master networkers have the edge in a tight market

New Consult Australia member firms 10

Learning to say ‘no’

A new deal for Urban Australia

Champions of Change commit to Charter

Market opportunities in the years ahead

The business of Building Information Modelling (BIM)

Building Information Modelling: some essential considerations

Budget 2013: a Yellow Brick Road to the Federal election

Employing legal workers

State Division updates

FutureNet updates

48 50

Industry comment

Workplace focus key to Australia’s productivity challenge

Climatic challenges for the mining industry: lessons from Queensland’s past weather events

Consulting Matters

Industry updates

Industry updates NEW APPOINTMENTS

MAJOR WINS

Beca executive appointments

Parsons Brinckerhoff selected as Project Management Consultant for Roy Hill

Beca is pleased to announce the following appointments as part of its global strategy to strengthen its business offering in the industrial and energy and resources markets in Australia and New Zealand. John Boers has been appointed to the role of Group Director Industrial Markets, Paulette Conley is now General Manager – Industrial and Matt Kebbell is the General Manager – Energy & Resources.

Parsons Brinckerhoff has signed an initial contract as the Project Management Consultant (PMC) for Roy Hill Holdings Pty Ltd (‘Roy Hill’), a $10 billion, 55Mtpa iron ore pit-to-port project in West Australia’s Pilbara region.

Sydney Water partners with Aurecon and AECOM Opus International Consultants appointments Opus International Consultants has appointed Gordon Davidson as its new CFO. Gordon is currently CFO of Kiwibank and has an extensive banking background with Bank of Scotland, National Bank and ANZ. Opus has also appointed Dr Matthew Ing to the newly created position of National Director – Bridges, Australia.

Aurecon and AECOM have come together for a joint venture as AAJV to win one of two positions on Sydney Water’s Engineering and Environmental Services panel. Sydney Water has a capital program of more than $1 billion to be delivered over the next four years. AAJV will assist Sydney Water in the delivery of major infrastructure projects during this period.

215 Adelaide Street, Brisbane announced the winner of the Thinc Award for Best Sustainable Development - Existing at the 2013 Property of Council Australia Awards. Photo courtesy of Jones Lang LaSalle, supplied by NDY

Two AECOM engineers take double in Australasian Rail Awards URS welcomes Steve Solly as Director – Engineering, Australia/New Zealand In this position, Mr Solly is responsible for developing URS’s engineering capabilities across all business lines, including transportation,mining, oil and gas, water/ wastewater, government, and power. Mr. Solly previously served as General Manager, Transport Services at Parsons Brinckerhoff, Australia-Pacific.

RedR Australia welcomes new CEO RedR Australia is pleased to introduce its new CEO, Kirsten Sayers. This appointment represents an exciting new chapter for the organisation as it continues to expand and diversify, further strengthening its support capabilities for humanitarian relief efforts worldwide.

National President’s baton passed to Sydney architect Sydney-based architect, Paul Berkemeier was inaugurated as the 74th National President of the Australian Institute of Architects at the Association’s Annual General Meeting in Melbourne in May 2013.

A senior engineer with AECOM’s Melbourne team, Liam Palmer-Cannon has won the RTSA 2013 Young Railway Engineer Award, and graduate engineer with AECOM’s Perth team, Michelle Tan received the RTSA Graduate Award.

design for urban cycling infrastructure from an architectural perspective.

Infrastructure Roundtable Chairmanship Construction set to begin on level crossing removals The Victorian Coalition Government has committed $349.8 million towards removing two level crossings in Mitcham and a third crossing at Springvale. The successful alliances for the projects are: Springvale Road, Springvale – NetworX comprising McConnell Dowell, Balfour Beatty Rail, Parsons Brinckerhoff and Beca; and Mitcham and Rooks Roads, Mitcham comprising John Holland and KBR.

Award for designing bike-friendly cities Architectural graduate and AECOM employee, Jack Jiang (left) is Europe-bound after winning a Cycling Visionaries Award for his entry to this year’s Velo-City conference in Vienna, Austria. Jack’s award entry, Bike Your City, examines how to plan and what to

SMEC General Manager – Transport, Dan Reeve has accepted the Consult Australia Infrastructure Roundtable’s nomination to the position of Roundtable Chair. Consult Australia thanks the innaugural Chair of the Roundtable, Tom Pinzone for five years of great service. Tom was the winner of the 2012 President’s Award recognising his services to the Roundtable and his contribution to the Association broadly.

Industry updates

INDUSTRY ANNOUNCEMENTS

Engineering greater diversity

Hyder Consulting has announced its acquisition of BCH Engineering Consultants Pty Ltd - a Western Australia based consultancy with expertise in the oil, gas, mining, resources, marine, civil infrastructure, land development and industrial sectors. This is Hyder’s second acquisition in the last 12 months.

In March 2013, AECOM infrastructure advisory consultant, Felicity Briody co-created The Power of Engineering with the aim to connect industry, universities, schools and communities and inspire the next generation of women in engineering. The not-for-profit is supported by AECOM, Queensland University of Technology (QUT) and Engineers Australia.

AGIC rebrand

SLR Consulting updates

Hyder Consulting acquisitions

Following the launch of the Infrastructure Sustainability (IS) rating scheme, IS training and infrastructure project ratings, the Australian Green Infrastructure Council (AGIC) has rebranded and is now known as the Infrastructure Sustainability Council of Australia (ISCA) www.isca.org.au.

GHD and ProMet team up GHD and ProMet Engineers have completed an agreement for the purchase of key ProMet business assets including ProMet’s valued employees in process engineering, study management, engineering and drafting resources as well as the company’s intellectual property.

Consulting Matters

Editor Cathy Mitchell

Editorial Coordinator Gillian O’Young

President Jamie Shelton

Chief Executive Megan Motto

Following strong growth for the firm, SLR Consulting recently announced two international acquisitions; California-based Strategic Engineering & Sciences (SES) and Johannesburg-based Synergistics Environmental Services Limited (Synergistics). The firm has also strengthened its Australian presence with the opening of a Darwin office.

Chief Operating Officer Julia Lemercier

National Sales Manager Uwe Gromen

Director of Policy Jonathan Cartledge

Senior Policy Advisor Jonathan Russell

Senior Legal Policy Advisor Robin Schuck

SMEC signs MOU with Hydrochina SMEC has strengthened its standing in the market by signing a Memorandum of Understanding (MoU) with the world’s largest hydropower corporation, Hydrochina, in Melbourne on 26 April 2013.

Director of Marketing & Membership Cathy Mitchell

National Events Manager Alexandra Hopper

Designer Voltaire Corpuz

National Manager (Education & Training) Alexia Lidas

Executive Assistant Kerri Clifford

National Operations Manager Sarah Lutton

National Database and Administration Coordinator Elvira Zoppola

DIAC Outreach Officer Belinda Saunders

Editorial Submissions gillian@consultaustralia.com.au

Advertising Enquiries info@consultaustralia.com.au

Cyclying Visionaries Award Winner, Jack Jiang (AECOM) Photo courtesy of AECOM

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

Consulting Matters

Industry updates

CLIENT CHOICE AWARDS Consult Australia would like to congratulate our member firms for their success at the 2013 BRW Client Choice Awards.

OVERALL PROFESSION AWARDS Best professional services firm Revenue: less than $50 million Best professional services firm Revenue: $50 million to $200 million

PROFESSION AWARDS Best consulting engineering firm Revenue: less than $50 million Best consulting engineering firm Revenue: $50 million to $200 million Best consulting engineering firm Revenue: $200 million-plus

SECTOR AWARDS Best provider to the construction & infrastructure sector Best provider to the property sector

STATE AWARDS Best South Australian firm

Industry updates

Consulting Matters

Improve your profit and performance We’re with you In today’s challenging business environment, it’s important that business owners understand their businesses and where opportunities exist. We’re with you on that. Deloitte Private has developed a secure, straightforward and cost effective benchmarking tool, tailored for the engineering industry. Subscribers can benchmark against industry peers whilst developing a better understanding of their data, monitoring cost and revenue performance, and improving business strategy. For more information please contact: Tara Hill Partner - Deloitte Private Tel: +61 2 9322 3691 email: tahill@deloitte.com.au

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited © 2013 Deloitte Touche Tohmatsu.

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Industry updates

What’s on in our industry Global

September 15-18, Barcelona FIDIC Centenary Conference www.fidic.org/

Victoria July 31, Melbourne VIC Division: Lunch with National President, UDIA www.consultaustralia.com.au September 9-11, Melbourne Professional Services Excellence www.consultaustralia.com.au December 6, Melbourne Consult Australia 2013 Awards for Excellence www.consultaustralia.com.au

Queensland July 26, Gold Coast State of Australian Cities Launch www.consultaustralia.com.au August 7, Brisbane 2013 Better Business Series: Growth Opportunities and Successful Change www.consultaustralia.com.au November 14-15, Brisbane Consult Australia: Safety in Design www.consultaustralia.com.au

August 20, Adelaide Industry Breakfast - Infrastructure SA: Funding the Pipeline www.consultaustralia.com.au

New South Wales July 24, Sydney Smart Cities Series – Transport & Logistics www.consultaustralia.com.au July 25, Sydney Insurance & risk management update www.consultaustralia.com.au July 25-26, Sydney ATSE International Conference ‘Nuclear Energy for Australia?’ www.atse.org.au August 9, Sydney CCN Live - HVACR in the year 2025 www.climatecontrolnews.com.au August 8-10, Sydney Consult Australia: Contracts for Consultants www.consultaustralia.com.au August 26, Sydney The Property Congress 2013 www.thepropertycongress.com.au August 26-27, Sydney 3rd Annual Building Information Modelling (BIM) Summit www.informa.com.au/bim September 12-13, Sydney Consult Australia: Safety in Design www.consultaustralia.com.au

South Australia August 1, Adelaide SA Annual Lunch 2013 www.consultaustralia.com.au

September 30-October 4, Sydney & Wollongong International Symposium for Next Generation Infrastructure www.isngi.org

Western Australia July 30-August 1, Perth AITPM National Traffic and Transport Conference www.aitpm.com.au/ November 14-15, Perth Consult Australia: Safety in Design www.consultaustralia.com.au

Australian Capital Territory July 24, Barton Women in Property & Construction Breakfast www.propertyoz.com.au

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 cathy@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.

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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 emailing our Editorial Coordinator 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 Relationship Manager, Uwe Gromen on (02) 9922 4711 or email uwe@consultaustralia.com.au

• Policy

www.consultaustralia.com.au

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Consulting Matters

What’s happening at Consult Australia

From the President Prosperity will come to those firms who embrace the economic circumstances and look for the opportunities it provides. This may mean looking further afield for work and being prepared to go beyond familiar regions, and into new areas. look for the opportunities it provides. This may mean looking further afield for work and being prepared to go beyond familiar regions, and into new areas. It can also mean adapting skills to better suit market needs, which is equally relevant for both public and private sector work. Both of these opportunities may best be achieved though partnering, which not only improves your service offering, but also exposes firms to more of the market and bolsters business development efforts. In Australia and beyond, market conditions for consultants working in the built and natural environment continue to challenge business stability and confidence. There appears to be little relief forthcoming; and the opportunities that do exist are elusive and unattainable to most of the market. Some say that the firms still standing today are the survivors of this challenging time. Whilst I don’t agree with this finality, I do believe that none of us can afford to relax – there are plenty of pitfalls ahead. The current volatility of the construction, infrastructure and resources industries means that circumstances change rapidly, at times bringing uncertainty right up until the point of payment. To ensure the longevity of our businesses we should consider these tough market circumstances to be our new reality. If and when the market picks up again, a new business strategy must be planned, but to rely on a business approach designed in, or for, more prosperous times will prove deeply flawed. A key pillar of any business plan will be to consider where your income stream will next come from. If the usual sources have dried up, it is important to consider alternatives. There are very few firms who can rely solely on reputation and expect work to continue. Prosperity will come to those firms who embrace the economic circumstances and

For managers, cost control – with a focus on balancing resources and overheads within fluctuating incomes – will continue to be important, however it’s the ability to win new business that will make the greatest difference to the bottom line. Winning new business requires effective leadership in order to identify market opportunities and focus the energy and efforts of staff. It requires a process of self-reflection to understand what you’re best at and to recognise the value that this provides to clients. Finally, it’s about recognising what you can offer, and how this differentiates you to your competitors. Now is a time when strong client relationships based on trust and value are paramount to delivering a steady stream of income. It is not too late to start increasing the strength of these relationships with your existing customers, and building them with your prospective client base. In today’s market, successful firms will be those that win new business through their willingness and ability to reflect, adapt and develop.

Jamie Shelton Consult Australia

What’s happening at Consult Australia

From the CEO In these times of competitive tension, creative and technical capability are a given. Firms must find other differentiators. This issue of Consulting Matters is focused on the theme of winning business – and this topic couldn’t be timelier given current circumstances. As market conditions remain weak or at the very least, variable (depending on your market and geography) firms will survive by cutting the cloth but will thrive through refocusing efforts on building their win rate and stealing market share. Of course the first things a business should consider is how well they understand the market and what work they WANT to win. Part of this is knowing where the opportunities may or may not lie (make sure you are receiving your quarterly Economic Forecast reports for this information). Another major component is knowing your businesses’ strengths and weaknesses, so that you can build on prior success by leveraging your areas of relative strength. Consult Australia’s new partnership with Deloitte Private to bring a new and improved Practice Performance Survey will help firms to do just that. By understanding key internal KPI’s (such as which parts/sectors/disciplines/ markets of your business are achieving the best return on investment), firms can make strategic choices about directional change in order to affect the bottom line. In addition, understanding your position relative to your key competitors is a good way to drive intelligent decision making about future prospects. As strange and contradictory as it may seem, these are also good times to consider the art of ‘client selection’. In an industry such as ours where it is usually the client who dictates the terms of trade, we often forget to exercise our power of choice. But understanding which clients are your clients of choice can assist a firm to channel their energies into developing stronger relationships with clients who will prove more profitable over the long term. Understanding what differentiates you in the market, playing to your strengths and having a balanced approach is ultimately the key to successfully navigating your business through tough times.

In these times of competitive tension, creative and technical capability are a given. Firms must find other differentiators. In particular, all professional services firms need to remember that first and foremost they are in the people business – not the engineering/architecture/environmental/ infrastructure etc business! Sustainable firms will continue to focus efforts on staff development (including leadership development). It is a natural reaction in tough times to hunker down, focus internally and cut costs out of the business, but these measures need to be balanced against a longer term outlook. Communications and relationship management skills are critical to business development and long-term success, and firms should continue to invest in these in a targeted way so as to build capital in the future of the business. Likewise, the firms that harness the power of networking will be in a better position to leverage future opportunities – the ‘who you know’ adage remains alive and well. When work is scarce, and competition fierce, it is the human element that will often help a firm to stand out from the crowd – a particularly memorable pitch, a pleasant and collaborative past experience, or a well written and reader-friendly report are just some of the ways to differentiate yourself. It is pleasing to see so many of our member firms continuing to invest in these areas, as demonstrated by our record 92 entries in this year’s Excellence Awards (our second year in our new model of business awards). I encourage readers to mark Friday, 6 December in their diaries for what is sure to be a memorable Awards night in Melbourne.

Megan Motto Consult Australia

Consulting Matters

Consulting Matters What’s happening at Consult Australia

CONSULT AUSTRALIA STAFF APPOINTMENTS Sarah Lutton - National Operations Manager Sarah Lutton joined the operations team at Consult Australia in February and has recently been promoted to the position of National Operations Manager. As National Operations Manager, Sarah will assist the Chief Operating Officer (COO) in all aspects of the business operations of Consult Australia. Sarah will also work extensively with the COO in the areas of Integrated Project Delivery (IPD) and Building Information Modelling (BIM).

Welcome new member firms Consult Australia welcomes new member firms: Kanebridge Engineering GCStruct Engineering Consultants Structural Integrity Engineering Pty Ltd

Pete Constanidis - National Finance Manager

Fyfe Alliance

Consult Australia is pleased to welcome Pete Constantinidis, who has joined the Association as National Finance Manager.

And Associate member: Holman Fenwick Willan

Pete’s previous experience includes a Finance Business Partnering role at Railcorp and a Project Management Accountant for the SilCar/Thiess joint venture, which is responsible for delivering the Federal government’s National Broadband Network (NBN) within NSW and QLD. As the National Finance Manager, Pete will be responsible for all financial matters of Consult Australia. Uwe Gromen - National Relationship Manager Consult Australia has recently welcomed Uwe Gromen into the role of National Relationship Manager. Uwe will be responsible for assisting potential members to improve their business operations through Consult Australia membership. He brings strong business acumen and a solid background in sales and new business development. With a Bachelor of Business majoring in financial and international business, Uwe has previously held roles as both a management consultant and financial analyst.

INDUSTRY CONTRIBUTORS Kathryn Walker – Lynch Meyer Lawyers Peter Biggs – Clemenger BBDO Melbourne Dr Jason Fox Kieran Moore – Ogilvy Publications Don Aroney – Brookfield Multiplex

AMMA (Australian Mines and Metal Association) Dr Vigya Sharma – The University of Queensland Kerrie McLeish – Planned Professional Risk Services

Robyn Henderson – Networking to Win

Helen Conway – Workplace Gender Equality Agency

Jamie Shelton – Northrop Engineers

Garrett Bray – BG&E

Geoffrey Bills

Sean Rapley – Northrop Engineers

Steve Brown – NDYLIGHT Richard Gardner – WSP Group Romilly Madew – Green Building Council of Australia Professor David Hood – Past-President of Engineers Australia Christine Wyatt – GHD

What’s happening at Consult Australia Consulting Matters

A new deal for urban Australia MORE THAN 80 PER CENT OF AUSTRALIA’S POPULATION LIVE IN CITIES THAT COLLECTIVELY GENERATE OVER 80 PER CENT OF OUR ECONOMIC WEALTH. The quality of life we know and love in our cities has been realised only because of the visionary planning, foresight and investment in infrastructure made by generations of Australians before us. However, many of the decisions that shaped our cities were made in response to the challenges of a different age. Today, Australians more than ever before, are demanding more liveable cities and urban centres that better reflect the way we live now and how we want to live in the future. Driving this demand is the personal and collective experience we have of our cities day-to-day; lived through the social and economic costs of congestion; the reality of a growing and ageing population; the challenges created by outward urban growth, unaffordable housing and more frequent extreme weather events; and inadequate infrastructure. These challenges are great, and demand leadership, vision and investment to help ensure our cities retain their status as some of the greatest places to live and work in the world. Good leadership amongst other things comes down to the ability to make good decisions. For infrastructure this entails vision, certainty, transparency and collaboration through partnerships, across governments, with industry and the community. These things are possible and are already in play across the world. In a true demonstration of vision and leadership, South Africa has implemented the South African National Infrastructure Plan and introduced the Presidential Infrastructure Coordinating Committee to develop a 20-year plan for infrastructure. Certainty has been brought to Canada with $27 billion over 10 years committed to infrastructure through the Building Canada plan. In a truly remarkable collaboration, the National Infrastructure Plan Strategic Engagement Forum (NIPSEF) in the UK has brought together over 60 different stakeholders from across the infrastructure delivery chain to aid government in the delivery of the UK National Infrastructure Plan. In Australia, we need similar ambition in our own domestic policy frameworks to unlock new funding for infrastructure alongside a stronger role for Infrastructure Australia (IA) and a new Federal Minister and Department for Cities and Urban Development.

A new Urban Infrastructure Fund is required, in partnership with the states and territories, to provide a new infrastructure investment asset class appealing to both institutional and retail investors. A stronger role for IA and a Minister for Cities and Urban Development would ensure that for every dollar invested by the government in infrastructure across portfolios and through our cities, the best possible return is achieved for taxpayers and investors.

Looking to our cities is the answer. This is the New Deal for Urban Australia and now is the time to adopt it. Megan Motto Consult Australia

*THE URBAN COALITION

For a stronger, more productive and liveable Australia we need: • T o build on the success of the Major Cities Unit to more effectively support policy to deliver better outcomes for cities across government portfolios. • T o refine the governance overseeing Infrastructure Australia to better align with the National Urban Policy and improve coordination with and between state and territory governments.

April

• I nfrastructure Australia to establish future research priorities in consultation with industry, alongside increased investment in a research program supporting evidencebased policy development. • I nfrastructure Australia to provide advice to the Australian Government on priority projects to be funded through the Urban Infrastructure Fund; evaluated using broad cost-benefit analysis against the goals of the National Urban Policy. • T o establish an independent Australian Centre of Procurement Excellence to develop and implement best practice procurement and deliver value for money. • C OAG criteria for future strategic planning of capital cities to be expanded to include better and deliberate management of population growth. These are just some of the commonsense recommendations that are outlined in A New Deal for Urban Australia which was launched in May 2013 by the Urban Coalition*. We must take action as a nation to drive initiatives that will cement our international reputation as the most productive, liveable and sustainable place to live on the planet.

The Coalition makes two key recommendations: 1. Unlock private sector dollars through a new Urban Infrastructure Fund Establishing an Urban Infrastructure Fund to create, in partnership with the states and territories, a new urban infrastructure investment asset class; offering lower risk, attractive credit-enhanced returns appealing to both institutional and retail (mum and dad) investors: creating a new source of infrastructure funding. 2. A stronger role for Infrastructure Australia and a new Federal Minister and Department for Cities and Urban Development incorporating the Major Cities Unit Strengthening and deepening the role of Infrastructure Australia and the Major Cities Unit; to help ensure that for every dollar invested by the government in infrastructure across portfolios and through our cities, the best possible return is achieved for tax-payers and investors.

Consulting Matters What’s happening at Consult Australia

Champions of Change commit to Charter

Consult Australia Champions of Change (left to right): Hari Poologasundram (SMEC), Santo Rizzuto (SKM), John Pitt (pitt&sherry), Greg Steele (Hyder Consulting), Peter Bailey (Arup), Jim Mantle (URS), Mark Dimmock (Parsons Brinckerhoff), Mark Bruzzone (MWH), Melvyn Maylin (Opus) and Ian Hopkins (NDY).

In May, 10 CEOs and regional Managing Directors of Consult Australia member firms met to sign a Charter of Commitment to workplace equality, and walked away having pledged personal action. This is the Charter of the Consult Australia Champions of Change. It commits the signatories to actively advance equality across their businesses and to act as advocates for the consulting industry. They believe that this is important because the talents of employees with broad experiences in their professional and personal lives deliver productivity, problem solving and business success dividends. Led by Hyder Consulting’s Greg Steele as Chair, the Champions are: • Arup Chair and Chief Executive Officer Australasia Region, Peter Bailey • GHD General Manager - Australia/New Zealand, John Baird • MWH Managing Director, Government & Infrastructure, Australia, Mark Bruzzone

• NDY Chief Executive Officer, Ian Hopkins • Opus Managing Director Australia, Melvyn Maylin • Parsons Brinckerhoff Managing Director Australia-Pacific, Mark Dimmock • pitt&sherry Managing Director, John Pitt • SKM Chief Executive Officer & Managing Director, Santo Rizzuto • SMEC Chief Operating Officer, Australia and New Zealand, Hari Poologasundram • URS Managing Director, Australia & New Zealand, Jim Mantle At their meeting, the Champions were joined by Amanda Lacaze from Chief Executive Women, an organisation that supports the development of women leaders in the business world. Amanda is a senior businessperson in her own right and challenged the Champions to commit to take real action.

Amanda shared her golden rules for leaders wanting to advance workforce diversity: • Sponsor, rather than just mentor, women through the organisation; • Intervene to appoint women; • Remove barriers to advancement; and • Focus on middle management, as that is where things can go off the rails. This initiative has been 12 months in the making and is now rolling ahead at full steam. If your CEO is not listed as a Champion, encourage them to get in touch with Consult Australia CEO, Megan Motto to find out how to sign up. Jonathan Russell Consult Australia

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

They believe that this is important because the talents of employees with broad experiences in their professional and personal lives deliver productivity, problem solving and business success dividends. Amanda Lacaze (Chief Executive Women)

Consult Australia Champions of Change Charter members include:

Consulting Matters

The business of Building Information Modelling (BIM) BUILDING INFORMATION MODELLING (BIM) IS NOW WELL AND TRULY A LEGITIMATE PART OF THE BUILT ENVIRONMENT INDUSTRY IN AUSTRALIA. AS THE TECHNOLOGY CONTINUES TO DEVELOP AND AS CHALLENGES IN IMPLEMENTATION AND TAKE UP ARISE, THE NEED FOR A UNIFIED APPROACH TO THE USE OF BIM BECOMES CLEAR.

Top: 3D BIM image of the triple 5 Star Green Star rated NDY headquarters in Melbourne. Image created by NDY BIM technology

The case for stronger collaboration in Australia can be drawn from the benefits seen in the United Kingdom where in March 2011, the UK Government challenged the construction industry to start using BIM on all public construction projects by 2016. There, the industry took a collaborative approach to setting the groundwork and through the UK’s Construction Industry Council (CIC), developed clear protocols, best practice guide and an outline for information management. With a number of countries well ahead in mandating BIM, it is time for a united approach to take on the technology. The adoption and use of BIM will help Australia to remain a global leader in design excellence – being known as a nation that embraces and adopts technological advances.

THE BUSINESS CASE The construction industry is the fourth largest contributor to Gross Domestic Product in the Australian economy and plays a major role in determining economic growth. In chain volume terms, the construction industry accounted for 6.8 per cent of GDP in 200809, compared with seven per cent in 200708. The industry had previously experienced seven consecutive years of growth as a proportion of GDP, since the introduction of the GST in 2000-01. Furthermore it is one of the largest employing industries in Australia. As at the May quarter 2009, there were 984,100 people employed in the construction industry representing 9.1 per cent of the total workforcei.

What’s happening at Consult Australia Consulting Matters

There are however inefficiencies in the sector that could be significantly improved through the adoption of a collaborative method of project delivery. Not only would Integrated Project Delivery (IPD) and BIM deliver design efficiencies (some expert’s estimate these could be in excess of 25 per cent) but by nature, they promote a collaborative approach to project delivery which in turn assists in the reduction of disputes. In 2009 the CRC for Construction Innovation produced a report, The Guide to Leading Practice for Dispute Avoidance and Resolution which states, “The Australian economy will continue to suffer wastage from disputes in the construction industry estimated at approximately $7 billion per annum.” Whilst we are not advocating that disputes will be avoided entirely through the adoption of IPD and BIM, it definitely provides food for thought in the case for a collaborative approach.

THE FUTURE... A COLLABORATIVE APPROACH In 2011 Consult Australia joined forces with the Australian Institute of Architects to form the joint BIM/IPD Steering Group. Since its commencement, the Steering Group has worked with both members and industry stakeholders on a range of work including

BIM in Practice, education, management plans along with legal procurement, publishing a suite of documents in August 2012. Following on from this work, the Steering Group is shifting focus from the technical, to the business side of BIM. The group will look at the preparation of papers addressing common issues relating to IPD, including procurement, legal and insurance issues. There will be an increased focus on advocacy as multiple clients (including government, residential and commercial developers) look to mandate BIM. This project will take place in consultation with representatives from client organisations who we are seeking to influence. This activity is of particular relevance to members and will include: • BIM deliverables and procurement/ tendering: Building on the work already completed, this project aims to establish common terminology. It also provides guidance for the selection of the most appropriate procurement methodology – allowing for a range of management, risk allocation, delivery and contract system options and project types – as part of the procurement strategy where BIM is incorporated within the project; and • Contract brief: The working party will establish a set of guiding principles to shape the development of construction

agreement(s), with an indication of the impact of BIM on scope, ownership, responsibilities, accountabilities, reliability, insurance, and fee (distribution). The guiding principles will form the basis for further development of new types of contracts that actively regulate the use of BIM on projects throughout Australia. Some of the legal issues surrounding IPD and BIM are outlined in Lynch Meyer Lawyers’ article below, Building Information Modelling: some essential considerations. In addition to the work being undertaken through the Steering Group, Consult Australia is also focussing additional attention in this area through the establishment of a new BIM/IPD Roundtable and through increased advocacy. United, we can face the challenges ahead and emerge as a stronger industry with Australian design consultancies leading the way.

Julia Lemercier Consult Australia

ource ABS A Statistical Overview Of The S Construction Industry http://www.abs.gov.au/ AUSSTATS/abs@.nsf/Lookup/1350.0Feature+Artic le1Oct+2010

Building Information Modelling: some essential considerations When using Building Information Modelling (BIM) there are a number of aspects that need to be considered. 1. CONTRACTUAL REQUIREMENTS AND RESPONSIBILITIES It will not be surprising to the reader to see that contractual requirements are at the top of the list when it comes to BIM. Projects using BIM must establish a clear protocol for its use which is accepted by all those contributing to the model. When entering into a contract that requires the use of BIM, make sure that the contract specifically addresses your obligations in respect of the use of BIM. 2. INTELLECTUAL PROPERTY AND COPYRIGHT BIM deals with intellectual property rights; as such it is necessary for appropriate approvals and access rights to be granted from and to all parties involved in the BIM model process. Permission is needed to use individual parts of the model and approval should be granted for that use in the contractual documentation at the start of the project. 3. LIABILITY AND INDEMNITIES Looking at the way BIM works, liability apportionment and indemnities in respect of design errors or data input errors need to be clearly

defined. Establishing the extent to which participants can rely on each others contributions, how the quality of contributions will be verified and excluding responsibility for checking others contributions needs to be clearly spelt out. 4. INSURANCE IMPLICATIONS AND REQUIREMENTS Once you have defined the scope of work and roles of the participants, it is important that you ensure that your insurance policy covers you for the use of BIM. While BIM is not intended to alter the usual standard of care to be imposed by the various contractors on a site, you should check if your insurance covers the use of BIM and that it does not expressly exclude its use. Remembering that BIM is intended to be collaborative, you should have your insurance policies checked by your insurer or broker to make sure you are covered.

Kathryn Walker Lynch Meyer Lawyers

Consulting Matters What’s happening at Consult Australia

2013

a Yellow Brick Road to the Federal Election THE 2013 FEDERAL BUDGET HAS SET THE SCENE FOR THE COMING ELECTION CAMPAIGN, ESTABLISHING THE KEY POLICY FOUNDATIONS FOR BOTH SIDES OF PARLIAMENT AS WE FIND OURSELVES WELL DOWN THE WINDING PATH TO ELECTION DAY. From the Government’s perspective, the Budget provided an opportunity to try and wedge the Coalition with major announcements supporting the National Plan for School improvement and DisabilityCare Australia. Infrastructure was the third big winner for 2013 with some new and considerable investment. However, with many infrastructure ‘commitments’ falling beyond the forward estimates, and contingent on matching state funding, uncertainty may be the more immediate deliverable.

is also significant reallocation of funds (for example a $2 billion haircut to the Regional Infrastructure Fund), and much spending deferred until after 2016-17 (when another election is likely). Estimates suggest around $3.09 billion in spending is allocated between 2013-14 and 2016-17.

THE GOVERNMENT’S INFRASTRUCTURE PRIORITIES

FINANCING INFRASTRUCTURE

The Budget extended the Nation Building Program (2014-15 – 2018-19) and at the very least identifies a clear pipeline of major new infrastructure ‘mega-projects’. Flagship investments include:  $ 4.1 billion additional investment in the Bruce Highway over the 10 years from 2012-13.  $715 million supporting Brisbane’s Cross River Rail to be matched by the Queensland Government.  $ 3 billion to support the Melbourne Metro to be matched by the Victorian Government.  $400 million supporting the F3-M2 link.  $500 million for either a Perth Light Rail or a rail link to Perth Airport pending assessment by Infrastructure Australia and discussions with the West Australian Government. The Government is promoting $24 billion in infrastructure investment. However, although there is additional spend, there

Critically important to the delivery of these projects will be locking in commitment both with state governments and across the Federal Parliament.

As outlined in Megan Motto’s earlier article, A new deal for Urban Australia, as part of the Urban Coalition in recent weeks Consult Australia has been calling for a National Urban Fund (a type of infrastructure bond scheme) to unlock private sector finance for infrastructure investment. This type of ambitious policy reform is not reflected in the 2013 Budget, which opts instead for more discussion. The Government flags the development of new funding and financing arrangements to help attract private sector involvement in those ‘mega projects’ (specifically Cross River Rail and Melbourne Metro) identified. $3.2 million is committed over two years to a new advisory board within Treasury to provide guidance on the most appropriate funding and financing structures to bring complex infrastructure projects to market.

This initiative builds on the recommendations of the Government’s Infrastructure Finance Working Group (since disbanded – the Urban Coalition recommends it be re-established within Infrastructure Australia), but provides little by way of concrete policy. Of particular concern, the Government has effectively ignored the case for attracting private sector investment to smaller scale infrastructure projects. There is a missed opportunity here to better use public funds to leverage private sector investment, and there remains a strong platform for the Urban Coalition to continue to lobby for A New Deal. Additional funding is also provided for Infrastructure Australia ($12 million over four years) to engage additional project and legal expertise to appraise and monitor the progress of infrastructure projects for designation under the Infrastructure Finance Reform (special taxation provisions) announced in 2012.

TAX – SELF EDUCATION EXPENSES CAPPED The Budget locks in the already announced decision to set an annual cap of $2,000 per person on deductions for work-related selfeducation expenses, effective from 1 July 2014. This ignored Consult Australia’s submission which argued against the cap, and in support of professional services for whom continuing professional development is essential.

The Government flags the development of new funding and financing arrangements to help attract private sector involvement in those ‘mega projects’ (specifically Cross River Rail and Melbourne Metro) identified.

What’s happening at Consult Australia Consulting Matters

Deductible education expenses are costs incurred in undertaking a course of study or other education activity, such as conferences and workshops, and include tuition fees, registration fees, student amenity fees, textbooks, professional and trade journals, travel and accommodation expenses, computer expenses and stationery, where these expenses are incurred in the production of the taxpayer’s current assessable income.

The Government confirms over $230 million over five years to establish five Industry Innovation Precincts, including access to a $50 million industry collaboration fund as part of its already announced Plan for Australian Jobs.

In an example of ‘robbing Peter to pay Paul’, the Government finds savings of over $500 million from this measure that it says are redirected to the National Plan for School Improvement.

AUSTRALIA IN THE ASIAN CENTURY

The Government has cut $24 million over four years from the building industry watchdog, the Office of the Fair Work Building Industry Inspectorate.

women seeking board positions, in particular board-ready women seeking their first appointment. Boardlinks will provide support, training and opportunities for board-ready women to increase the pipeline of experienced women available for appointment to boards in all sectors.

SUSTAINABILITY

Tokenistic support to improve business links with Asia is provided through a $7.8 million Asian Century Business Engagement Grants program (over five years) to support Australian businesses broadening their reach into emerging business centres.

BUSINESS COMPETITIVENESS AND INNOVATION The Budget is notable for what it does not include, particularly by way of any form of deregulatory agenda for business, any focus on the Seamless National Economy, few initiatives and a remarkable lack of emphasis on policy supporting small business.

DIVERSITY As announced earlier in the year, the Government will provide $4.3 million over five years to establish BoardLinks and AusGovBoards to form better connections between the Australian Government and

With the introduction of the Carbon Tax and the connection made with the European emissions trading scheme, the Government appears reluctant to invest further in responding to the broader challenges posed by climate change. Resilience and adaptation remain in urgent need of national policy support; with the government’s commitments through natural disaster relief and recovery arrangements falling short of what is required, and what Consult Australia has advocated through the Australian Sustainable Built Environment Council. The Government does find $98 million in savings through cuts to the Community Energy Efficiency and Low Income Energy Efficiency programs.

The Coalition’s reply The Coalition Budget Reply on 16 May 2013 embraced the cuts identified by the Government reserving “the option to implement all of them, in government.” Initiatives flagged by the Opposition include:

• A commitment to reduce the size of the Commonwealth public sector by at least 12,000.

• The already announced commission of audit;

Pleasingly, infrastructure commitments also featured strongly in the Coalition’s Budget Reply, specifically a commitment to start work within twelve months on:

• A root and branch review of competition policy, ‘to ensure that small business gets a fair go’; • A more generous Paid Parental Leave scheme; and • An expansive deregulatory agenda. New announcements in the Coalition Budget Reply include: • The delivery of a white paper on tax reform (potentially including the GST); • A white paper on COAG reform and the differing responsibilities of the spheres of government; • Delaying the increase in compulsory superannuation contributions by two years; and

THE COALITION’S INFRASTRUCTURE PRIORITIES

• Melbourne’s East-West Link; • Sydney’s WestConnex; • Brisbane’s Gateway Motorway upgrade; • Adelaide’s South Road; • Tasmania’s Midland Highway; and • Key roads in Perth and parts of the Bruce Highway. This strong program of work and commitment to infrastructure is to be applauded. The clear difference between the Government’s priorities and the Coalition is in the differing view on the role of the Commonwealth in relation to urban rail infrastructure. Mr Abbott again stated in the aftermath

of the Budget that, “As far as the Commonwealth is concerned, I think the priority for infrastructure spending should be major roads rather than urban rail.” This is reflected in the absence of the well-developed proposals for cross-river rail and Melbourne Metro in the Coalition’s infrastructure priorities. Such arbitrary distinctions between rail and road are of concern, not because of the relative merits of each mode, rather because such statements undermine the principal of prioritising projects based on sound, independent cost-benefit analysis. Tax-payers’ funds should be allocated to infrastructure projects based on those which deliver the greatest productivity dividend. Jonathan Cartledge Consult Australia

Consulting Matters What’s happening at Consult Australia

Employing legal workers In 2007 it became a criminal offence to employ non-citizens who are not allowed to work in Australia, carrying with it fines and possible jail terms. These penalties are now being supplemented with new laws that were introduced on 1 June 2013. Businesses that employ, refer or contract non-citizens who work in breach of a visa condition that limits or restricts work, or who do not hold a valid visa, could be issued with an infringement notice or be liable for civil penalties. The new penalties will range from $3,060 to $76,500 per illegal worker. Now is the time for businesses to put good employment practices in place and make sure they are not employing or contracting illegal workers. To assist in doing this, the government provides a free 24 hour service, Visa Entitlement Verification Online (VEVO). VEVO can confirm if a non-citizen is allowed to work or if there are any work limitations

associated with their visa. New VEVO email functionality now allows visa holders to send their visa details and entitlements to an employer directly from VEVO. This means many employers will no longer need to register to use VEVO to confirm if someone is allowed to work. More information about VEVO can found at www.immi.gov.au/vevo. The government has launched a campaign to inform businesses about these reforms. The campaign will involve advertising on metropolitan and regional radio, online and in industry publications. The Department of Immigration and Citizenship (DIAC) is also getting the message out through its outreach resources and by engaging with representatives from the business sector, key peak bodies and industries. More information about hiring legal workers can be found at www.immi.gov.au/ legalworkers.

NEED INDUSTRY SKILLED MIGRATION ADVICE? Consult Australia members have exclusive access to a Department of Immigration and Citizenship 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 DIAC Industry Outreach Officer Belinda Saunders by email belinda.saunders@immi.gov.au or telephone on on 0466 150 022.

Consulting Matters

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

Government engagement: Members of the Victorian Division Committee recently met with Terry Mulder’s Chief of Staff, Peter Greenwood to discuss the current state of the sector in Victoria and the Government’s commitment to the infrastructure pipeline. We will also be holding a boardroom luncheon in the next couple of months with representatives of Mr Mulder’s team to lend our expertise in the areas of infrastructure funding. Victorian jobs and investment plan: The Victorian Division Committee is currently engaged in discussions with Shadow Minister for Roads, Tim Pallas to progress the issues outlined in our recent submission to Victorian Labor’s call for feedback as part of the development of a Victorian jobs and investment plan. This plan is an important step supporting long-term policy development for a more productive and sustainable Victoria, and has led to a successful follow-up boardroom luncheon with Tim and our members to progress the issues. We now have a taskforce together to assist in discussing, ‘What is the optimum solution for integrating planning through the three major infrastructure projects; East West Link, Doncaster Rail and Hoddle Street?’ Infrastructure funding: We have been approached by the Leader of the Opposition, Daniel Andrews for a meeting to discuss infrastructure projects and, in particular funding options for these projects. The types of projects they are concentrating on are grade separations and outer metropolitan arterial roads. Procurement, innovation and risk performance: Consult Australia Victorian members 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 the coming weeks. The Division is also participating in other areas in which our members can assist and we now have individual meetings scheduled to ensure maximum collaboration.

VIC RECENT EVENTS Meet the Client – Major Projects Victoria (MPV): MPV provides project delivery services and advice to Victorian Government departments and other agencies engaged in the delivery of complex, technically challenging, and invariably unique projects of state significance. At a recent meeting we welcomed MPV Executive Director, Tim Bamford who addressed a wide range of topics including the role and operation of MPV, their major projects, and what MPV looks for in a consultant. Our members loved hearing from Tim and also had the opportunity to ask many burning questions about the future of Victoria!

VIC UPCOMING EVENTS Consult Australia’s economist, Geoff Bills will be joining us in the coming months for our session, Economic Conditions and Future for the Consulting Industry in the state of Victoria. Consult Australia and the Transport Reform Network (TRN) will also be holding an event on the infrastructure of Melbourne. Look out for more information!

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VIC DIVISION PLATINUM SPONSORS:

What’s happening at Consult Australia Consulting Matters

TAS POLICY UPDATE Policy update: Consultants from member firms within Tasmania have raised concerns regarding Southern Water contracts. We have sent a letter to Southern Water outlining our concerns and will be addressing these issues via correspondence between Senior Legal Policy Advisor, Robin Shuck, State Manager VIC & TAS, Zeina Nehme and three representatives from our member firms (SKM, pitt&sherry and GHD). The Tasmanian Division recently met with Minister David O’Byrne’s Advisor, Janine Arnold to discuss advocacy issues and limits on liability in Tasmania. We are hoping to soon hold a boardroom lunch with the Minister and develop an ongoing relationship with the Procurement Manager in the department.

TAS UPCOMING EVENTS Calendar of events: Have you been yearning to hear from Tasmania Water, Forestry Tasmania or even the Minister of Sustainable Transport? We have a calendar of events coming your way soon! The Tasmanian Division encourages members to put forward suggestions around which ministers they would like to meet, and any local issues or initiatives that Consult Australia can be more actively involved in. Please forward your suggestions to Zeina Nehme.

TAS OTHER NEWS Are you interested in joining the Consult Australia Tasmanian Division Committee? Send your expression of interest to Zeina Nehme. We would love to have you on board!

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Consulting Matters What’s happening at Consult Australia

Amy Lowe State Manager – NSW & ACT Phone: (02) 9966 4966 Adrress: Level 6, 50 Clarence Street Sydney NSW 2000 Email: amy@consultaustralia.com.au

NSW POLICY UPDATE

ACT POLICY UPDATE

Procurement NSW: Procurement NSW Executive Director, Mr Paul Dobing agreed to hold a briefing for the NSW Division Committee members on the status of the procurement review and conditions of contract projects. A successful meeting was held on 6 May 2013 and the Division will be continuing to work closely with Procurement NSW to further progress these issues.

ACT Division structure: Following an ACT strategy meeting, the ACT Division is now reviewing its structure. Members will be made aware of these changes in the coming weeks.

NSW RECENT EVENTS Smart Cities: The Smart Cities Series was successfully launched at the Radisson Blu on Wednesday, 3 April where speakers broadly outlined the Smart Cities topic and what it means. We will be covering a number of topics relating to Smart Cities in detail at breakfast sessions throughout the year. In the first session we explored the ‘digital economy’. For more information on the remaining sessions, contact the NSW Division on (02) 9966 4966. Disaster Recovery: On Thursday, 11 April the Division held a Disaster Recovery Seminar to discuss the implications of natural and manmade disasters on business. We were lucky enough to have Dr Edward Blakely as keynote speaker. Dr Blakely headed up the disaster recovery efforts following Hurricane Katrina in the United States.

If you would like to participate in the Division and help shape Consult Australia in the ACT please contact State Manager NSW & ACT, Amy Lowe on (02) 9966 4966 or amy@consultaustralia.com.au.

ACT RECENT EVENTS Safe Design course: The Division ran a very successful Safe Design course on Friday, 1 March 2013. Due to the success of the course we will be running a second one on Wednesday, 10 July 2013. Contact the NSW Division on (02) 9966 4966 to register.

ACT UPCOMING EVENTS ACT Mini-Symposium: The Division will hold its second annual Mini-Symposium on Wednesday, 31 August. Keep an eye out for further information in the coming weeks.

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What’s happening at Consult Australia Consulting Matters

QLD POLICY UPDATE Department of State Development, Infrastructure and Planning (DSDIP): In January 2013 Consult Australia met with DSDIP Director General, David Edwards. At the meeting, updates were provided on the structure of the department, including the commencement of Economic Development Queensland which has replaced the former Urban Land Development Authority (ULDA) and Infrastructure Queensland. The General Manager of Economic Development Queensland, Chris Mills also addressed our members at a breakfast event in May. Department of Transport and Main Roads (TMR): Consult Australia’s QLD Division met with senior executives of TMR on 26 February 2013. The meeting focussed on regional work flow, the pre-qualifications system, standard contracts and TMR initiatives for amending TMR standards in order to drive value for money. A separate working group has been set up to provide input into commentary around prequalification categories for consultants. Our members have now provided feedback on four categories: traffic engineering; economic studies; geotechnical engineering; and bridge design. The QLD Division has a dedicated email list for those interested in staying informed of our regular engagement with TMR. Simply contact QLD State Manager, Stacey Rawlings to be included on this list. Department of Housing and Public Works (HPW): Consult Australia’s Director of Policy, Jonathan Cartledge and Stacey Rawlings met with HPW Senior Policy Advisor, Matt Tapsell on 4 April. Discussions included: structural changes to the HPW, and what this will mean for the future procurement of professional services; the State Procurement Policy review; and registration of engineers. In relation to the State Procurement Review, Consult Australia has proposed establishing a roundtable comprised of our members along with representatives of all government departments involved in procuring built and natural environment professional services to explore and discuss best practice procurement, including the use of standard contracts, and ensuring value for money via procurement processes. A boardroom lunch with the Minister for Housing and Public Works, Tim Mander is scheduled for 4 July 2013. Seqwater: On 24 April, Consult Australia met with Seqwater Chief Financial Officer, Peter Scott and Manager Procurement, Michael Austin. Areas of interest for our members included: pipeline visibility to be made available to the consulting industry; transparency and consistency in procurement processes; and the opportunity for Consult Australia to review current and/or new contracts including panel arrangements. Consult Australia is hoping to set up a regular (up to three times a year) schedule of meetings with senior executives, and participate in reviewing Seqwater’s new suite of contracts prior to their release to market. Queensland Treasury & Trade: Consult Australia held a meeting with Projects QLD acting Executive Director, Liam Gordon on 10 May to introduce the Association and to discuss issues of concern to our members and industry. Future opportunities to work with Projects QLD

include being involved in reviewing the Value for Money and Project Assurance frameworks that are currently being developed by the department.

QLD RECENT EVENTS QLD industry breakfast - Dispelling the Renewables Myths: On 19 April we were pleased to bring together the Australian Conservation Foundation President, Profession Ian Lowe and Gas Field Commissioner Queensland and Australian Petroleum Production and Exploration Association (APPEA) Chief Operating Officer, Rick Wilkinson. Both speakers highlighted the need for an intelligent conversation around the right energy mix for the future. With consumers more interested in reliability than price it is important for industry to focus on efficiency. QLD industry breakfast - Commonwealth Games Village and Economic Development Queensland: At our 7 May breakfast, members were provided an opportunity to hear about the Government’s expectations of the private sector in coming up with an innovative and commercially viable solution for the delivery of the games village. Economic Development Queensland General Manager, Chris Mills also provided an update on the strategic priorities of the department that will assist in creating private sector activity through development and planning. Better Business Series: Bidding to Win, Not just Participate was the second session in the 2013 Better Business Series and was held on 8 May. The event brought together 30 members and guests and explored how to avoid the ‘cookie-cutter’ approach to bid-writing and to ensure that you focus on the brief and needs of the client. Value adding in the current market is critical to success.

QLD UPCOMING EVENTS Mark your calendar for these upcoming events and check the website for details. 26 July: State of Australian Cities 2013 Report launch 30 July: Global Challenge of Sustainability 7 August: Better Business Series - Growth opportunities and successful change

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QLD DIVISION PLATINUM SPONSORS:

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

SA POLICY UPDATE

Adrress: Level 3, 70 Light Square Adelaide SA 5000

Industry advocates: The SA Division Executive Committee met with the recently appointed Industry Participation Advocate (IPA), Ian Nightingale and the Office of the Industry Advocate, Director Ms Nari Chandler. The Office operates independently of other Government departments and reports directly to the Minister for Manufacturing, Innovation and Trade. It will also work closely with the Minister for Finance, particularly on procurement matters. The appointment of an IPA seeks to further the aims of the State Government’s Industry Participation Policy, ensuring local businesses leverage maximum opportunities from the $3.8 billion of contracts let annually by the State Government. Consult Australia member firms immediately identified issues of concern including:

Email: jan@consultaustralia.com.au

• Cost of tendering/cost of bidding;

Jan Irvine State Manager – SA & NT Phone: (08) 8216 1177

• Value of tender, as opposed to cost; • A lack of a rolling pipeline of projects, which creates ebbs and flows of work which in turn results in the threat of a ‘brain drain’ or skills shortage; and • Government procurement processes regarding major projects and the ensuing capability of SA companies to deliver. The Division will continue to engage with the office and seek inclusion on industry advisory panels providing advice on professional services specific issues. Gender Equity Workshop: The Division recently held a Gender Equity Workshop to share best practice and determine key priorities to improve the representation of women in senior roles across the SA consulting industry. The very engaged group of attendees identified: environmental factors impacting on the industry; shared key challenges in achieving gender equity; and key priorities and drivers for actions. The group is now working collaboratively on the next steps as identified during the workshop and will reconvene for a progress update in July. Updates from these workshops will be given to Consult Australia’s Champions for Change at their next meeting. Participants of the group include representatives from: Parsons Brinckerhoff; URS; SKM; KBR; Tonkin; and Aurecon as well as Consult Australia Senior Policy Advisor, Jonathan Russell and State Manager SA & NT, Jan Irvine. Thanks go to Parsons Brinckerhoff for hosting the first meeting of the group.

SA RECENT EVENTS SA industry breakfast: The SA Division’s May industry breakfast, BIM – Collaboration in Contracting drew a large and diverse audience. By its nature, BIM is a collaborative process used to create a three dimension digital model from multiple data sources which can be shared between all stakeholders and maintained across the life of a building. Our panellists, led by Lynch Meyer Lawyers Partner, Kathryn Walker, and using the Adelaide Oval Redevelopment as a case study, discussed the challenges that BIM brings to our conventional thinking

about contracts, model ownership, and collaboration with subcontractors etc. It also looked at how the process can be managed to provide a level of comfort about where, how and by whom data is being used and manipulated, and how a level of control can be maintained over intellectual property and exposure to mistakes of others. Thanks go to Derek Broome (Aurecon), Ian Hore (Walter Brooke) and Cos Cirocco (Planned Professional Risk Services) for their focussed discussion on the practicalities of BIM in practice. May boardroom lunch: With the State election less than a year away, the two major political parties are now working to outline their respective visions for the future of South Australia. At a boardroom lunch in early May, 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. There was specific focus on planning and infrastructure and strategies for boosting economic growth in South Australia. We hope to meet with the Government at an upcoming boardroom lunch.

SA UPCOMING EVENTS The SA Division will be holding further industry breakfasts and member-only boardroom lunches in the coming months. Topics will include discussion around the annual Economic Forecast and Funding the Pipeline – Infrastructure SA. The annual lunch is also expected to be held on Thursday, 1 August with a nuclear energy theme. Further information on all future events held by the Division can be found on the SA page of the Consult Australia website.

SA OTHER NEWS Again we thank URS for their continued support and generosity in providing an office for Consult Australia in South Australia.

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What’s happening at Consult Australia Consulting Matters

NT RECENT EVENTS Northern Territory (NT) Planning Commission: The new independent planning body for the Territory, the NT Planning Commission has been tasked with cutting red tape, speeding up procedures and identifying land for development. As major suppliers of professional services to the Government, Consult Australia members recently met with NT Planning Commission Chairman, Gary Nairn. The purpose of the meeting was to help develop a better understanding of the Commission’s vision for the next 12 months and beyond, and the consulting industry’s role in the vision – how we might contribute to the future growth of the Territory and enhance local business and industry capability. Key points of discussion included: • Implementation policy; • Expected actions for major projects; and • Areas of Government concentration – regional/remote/ Darwin metro. The breakfast meeting was very positive with the Consult Australia NT Division acknowledged as an informative, active and knowledgeable industry group that the Planning Commission can utilise as a reference point in the future. Northern Territory (NT) Lands Planning: At the May members-only breakfast, we welcomed the Minister for Lands, Planning and the Environment, Minister for Education and Minister for Housing, The Hon Peter Chandler MLA. As NT Lands Planning is responsible for developing strategic plans and policies for the sustainable long-term use and development of land in the Northern Territory, this meeting was held in order to develop a better understanding of the Government’s key objectives in this space, and also the issues facing our industry in 2013 and beyond. Also discussed was the consulting industry’s role in these objectives and how we might contribute to the future growth of the Territory and enhance local business and industry capability.

NT UPCOMING EVENTS Networking event: The NT Executive Committee has plans underway for an industry networking event to be held in Darwin during the month of August. Details will be released as confirmed. Members will be advised of further upcoming events via email. If you are not on the email list to receive correspondence from the NT Division and would like to be, please email State Manager NT & SA, Jan Irvine (jan@consultaustralia.com. au) to ensure you do not miss out on information and the chance to be at the table for informative industry discussions. An engaged industry body has a stronger voice and we encourage you to become involved with Consult Australia. NATIONAL STRATEGIC PARTNER:

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Book now For more course information and dates contact Alexia Lidas on (02) 9922 4711 or education@consultaustralia.com.au

$1,650 for Consult Australia members $2,220 for non members Group booking and in-house discounts available (All prices include GST)

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WA POLICY UPDATE 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

BEDP (Built Environment Design Profession): Working group meetings between representatives of the BEDP and Building Management and Works (BMW) are still proceeding and, although no formal outcomes have been reached, there appears to be some goodwill on behalf of the State to come to a mutual agreement with BEDP on those matters being discussed. In addition, the BEDP members of the working group have scheduled a meeting with the Chief of Staff to the Finance and Energy Minister, Dr Mike Nahan to discuss the matters currently on the table with BMW. Main Roads WA: Concerns have been raised with the Managing Director of Main Roads that the number of near miss incidents at road construction sites, particularly for traffic controllers, is increasing. The matter was raised at the Western Australian Road Construction and Maintenance Industry Advisory Group meeting and again at the Main Roads corporate executive meeting. The discussions led to Main Roads concluding they will undertake a review of current practice. The review will involve industry and will be discussed further at the next WA Road Construction and Maintenance Industry Advisory Group meeting. Concerns have also been raised with the Managing Director of Main Roads regarding Main Road WA’s design review process. Main Roads intends on holding a workshop with a selected number of design consultants to consider this issue.

achievements at the company including start up of the Pluto LNG Project and agreements to secure new partnerships for Woodside in Israel and Myanmar. 2013 State Growth Outlook breakfast: This event was held on 17 May 2013 and welcomed Reg Howard-Smith and Andrew Winter from the Chamber of Minerals and Energy of Western Australia (CME). Reg has been with CME as a Director since 2002 prior to his appointment to Chief Executive in 2007. Andrew Winter is the Manager for Infrastructure at CME and his role includes framing the industry’s position on a range of infrastructure issues concerning energy, water, road, rail, ports and aviation. The resources sector is a major driver of both the West Australian and national economy. Given recent changes in market conditions and the increasing costs of doing business in Australia, it’s important to understand where the sector is heading. The State Growth Outlook is CME’s flagship publication which looks at the growth plans of the resources sector over the next 10 to 15 years. The 2013 State Growth Outlook considers the key growth enablers of people, energy and water, and looks at the demand drivers and outlook for key infrastructure including airports, ports, road, rail and social infrastructure.

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WA RECENT EVENTS Peter Coleman breakfast: Consult Australia’s annual Peter Coleman breakfast was held on Friday, 12 April 2013. 12 months on from his first address to Consult Australia, Peter reflected on the recent strategic and organisational changes at Woodside. He discussed the values and principles required for a successful organisation, and some of the keys to staying competitive in an increasingly diverse global oil and gas market. Peter has been CEO and Managing Director of Woodside since joining the company in May 2011. Since taking the helm at Woodside, Peter has overseen some significant

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Peter Coleman Breakfast (left to right) Gillian O’Young (Consult Australia), Peter Coleman (Woodside), Judith Uren (BG&E).

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NSW FUTURENET NEWS FutureNet NSW Committee: FutureNet committees in both Sydney and Newcastle have been restructured and now have a senior professional involved on each Committee in a mentor role. The mentor will act as Chair for the first year before stepping down from an official role in the Committee to concentrate on mentoring the young professionals. This provides a great opportunity for younger professionals sitting on all FutureNet committees. We would like to thank Andrew Spinks from SKM (Newcastle) and Marianne Foley from Arup (Sydney) for taking on these senior roles.

NSW FUTURENET BUSINESS LEADERS COURSE 2013 Business Leaders: The 2013 FutureNet Business Leaders Course commenced in Sydney in early April with two pre-course sessions. Participants were given the opportunity to be ‘profiled’ and briefed on how to utilise the results of their personal profile to build their careers and be valuable team members, eventually leading them to becoming great leaders. All participants found this portion of the course extremely beneficial. They continued to learn great things and look forward to each fortnight for their sessions. Good luck to all 2013 participants!

NSW FUTURENET RECENT EVENTS

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2013 launch events: Both Newcastle and Sydney held launch events to bring in the New Year. In Newcastle we held a workshop on networking to set up attendees for the year ahead and ensure their networking skills were on par to build great relationships at future events. Attendees in Sydney were treated to motivational presentations from Rugby League legend, Wayne Pearce and Young Designer of the Year 2012, Gavin Hume both of who ensured attendees would be motivated enough to start 2013 off with a bang!

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Leave Your Cards at the Door: On Wednesday, 29 May Sydney FutureNet held a fun event titled, Leave Your Cards at the Door, which focussed purely on networking. The event was facilitated by networking guru, Julia Palmer from the Business Networking Academy and provided attendees with a unique and fun networking experience. For more information on what happened on the night, as well as the hilarious outcomes, contact us for a copy of the Sydney FutureNet July newsletter.

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RECENT EVENTS

2013 launch event: On Thursday, 21 February 2013 ACT FutureNet held their first event to kick-start the year. Rugby League legend, Wayne Pearce provided a motivational presentation to demonstrate the value of finding a suitable mentor to assist in developing your career. Writing Winning Proposals and Tenders: This two hour workshop proved very successfully for FutureNet ACT. Facilitated by Stretch Marketing Director, Rebecca Wilson the workshop provided attendees with the tools and tactics they need to write a winning tender. Feedback from this event has been great and we look forward to running similar workshops in the future.

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QLD FUTURENET NEWS QLD Committee news: We welcome the start of 2013 with a new Chair and new Committee members. In 2013 the FutureNet Committee members are all committed to raising the profile of FutureNet in Queensland and willing to attend firm offices to provide a brief presentation on the benefits of getting involved. Contact the Queensland office to arrange a presentation.

QLD FUTURENET RECENT EVENTS Ideas Fiesta at Brisbane City Hall: With the fantastic topic and venue, the first event of 2013 was bound to be spectacular. There was no better place to kick off our first event than in the newly refurbished Brisbane City Hall. Held on 18 April, our Ideas Fiesta event enticed nearly 200 young professionals to attend and offer their ideas – big and small – on seven transformative areas located within the Brisbane City Centre in a workshop style event.

QLD UPCOMING EVENTS Trivia Night: Our Trivia Night will be held on Thursday, 11 July.Check the website for details! Townsville Launches: We are proud to launch our first Townsville event on Friday 26 July. Minster for Local Government and Community Recovery and Resilience, David Crisafulli MP, and Phillipa Maddocks, from Townsville City Council will help celebrate this momentous occasion. We thank our gold event sponsors; Tracey Brunstrom & Hammond Pty Ltd and MacDonnells Law, and our supporting bronze event sponsors; GHD, Golder Associates, RPS and FortisEM for their support of this inaugural event. Dates for Brisbane events have been set for the remainder of the year, so mark your calendar (stay tuned for Townsville updates): • 29 August • 24 October BRISBANE FUTURENET GOLD SPONSORS:

Casual networking in the foyer kick-started the night before the workshop commenced. Brisbane City Council’s Neighbourhood Planning and Development Assessment Committee Chair, Councillor Amanda Cooper gave an opening address, followed by an introduction to the workshop format and task by FutureNet Committee member and Vice Chair, Mark Case. This encouraged excitement and an enthusiastic buzz in the auditorium. Numerous ideas were noted on butchers’ paper, in notebooks, some were even drawn and sketched. Brisbane City Council representatives and five key industry representatives challenged the ideas generated and thoughtprocess of each and every group. The workshop ended with additional networking both in the foyer and within and around tables of ideas in the auditorium. Check out http:// citycentremasterplan.brisbane.qld.gov.au/ to see all the ideas from the Ideas Fiesta celebrations to date. Wake up with FutureNet – Building QLD for a New Economy: Over the last 10 years, Queensland has attracted significant growth in the professional services industries that support the built environment – mining and resources. As major resource projects have moved from the design to operational phase, and with significant reductions in infrastructure spend by the state government, the stability of our industry is under threat. With a limited window of opportunity to capitalise on Queensland’s status as a hub for these high-value, knowledge intensive, advanced services industries, what are the changes or opportunities that need to be realised to support the sector alongside the next phase of the state’s growth? How do we increase productivity, capitalise on innovation and ensure the future of our profession in Queensland? Our Wake Up with FutureNet event held on 23 May saw experienced industry professionals joining a panel session to discuss and better understand the current position of the state and the decisions that need to be made for Queensland to prosper.

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SA FUTURENET NEWS SA FutureNet engagement: Know someone who would enjoy being a part of FutureNet? What sets FutureNet apart from similar initiatives is that it’s not just a facility for networking. FutureNet also has a strong professional development aspect focussing on leadership and other skills which young professionals will require to further their careers. SA FutureNet is also looking to further diversify our Committee. The SA Committee consists of young professionals from a diverse range of professions and firms from within the building and construction industry including architecture, law, environmental science, interior design and engineering. The group develops a program of events and activities appropriate to their own unique market and collaboratively develops and runs these events. We are now taking expressions of interest from those wanting to join the Committee. For further information please contact State Manager SA & NT, Jan Irvine.

SA FUTURENET RECENT EVENTS

SA FUTURENET UPCOMING EVENTS • Thursday, 27 June: Engineers vs. Architects debate - Should architects, rather than engineers, be the lead consultant on construction projects? • August cocktail event: Ageing Infrastructure: an insight into SA Water’s asset assessment management • September speed networking event

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April networking breakfast: At our April networking breakfast we showcased the Riverbank Precinct and Pedestrian Bridge. The precinct is home to an extraordinary array of sporting, recreational, cultural and civic institutions, and is located within the Adelaide Parklands – a significant ‘green belt’ of which the River Torrens is the logical focus and the pedestrian bridge is a key binding element. The Riverbank Precinct Pedestrian Bridge, currently under construction over the River Torrens, connects the north and south banks of the River Torrens and is an integral part of the South Australian Government’s Masterplan for the entire Riverbank precinct. Guests gained insight behind the latest Masterplan, the key urban design principles in the bridge design and the project delivery.

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

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WA FUTURENET RECENT EVENTS

Presenting like the Pros - the Spokesperson’s Tips of the Trade: WA FutureNet kick-started the year with an insightful presentation on public speaking skills by former ABC TV newscaster, Deborah Kennedy. Deborah has been a journalist for almost 30 years and has held high profile positions in newspapers, television and radio in Western Australia. She is an accomplished Master of Ceremonies whose credits include the 2011 Commonwealth Heads of Government Meeting and the 2012 State Reception for visiting US Secretary of State, Hillary Clinton. At the event, Deborah discussed the critical factors required for effective presentations and pointed out several of the common pitfalls to avoid. A good spokesperson gives themself, their company and its brand a valuable competitive edge and attendees were able to leave with a stronger understanding of the skills required to deliver this.

From left: Shandip Abeywickrema (Aurecon), Deborah Kennedy (ABC TV) and Garrett Bray (BG&E)

The City of Perth panel discussion: WA FutureNet’s second event for the year involved a high profile panel discussion on current and proposed development projects in Perth. The panel featured: Metropolitan Redevelopment Authority CEO, Kieran Kinsella; Hames Sharley Executive Chairman, William Hames; Perth City Architect and principal architect of Craig Smith Architects, Craig Smith; and Hassell Principal and project leader for the Brookfield Place development, Andrew Low. The panel of prominent figures in Perth’s built environment industry delivered fascinating insight into projects ranging from Elizabeth Quay, Citylink, East Perth Riverside to the stadium at Burswood, and into their personal visions for Perth and the long term issues for young Australian built environment professionals.

Presenting like the Pros - The Spokeperson’s Tips of the Trade

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VIC FUTURENET RECENT EVENTS Trivia night: VIC FutureNet held their annual trivia night on 16 April 2013 with over 100 people in attendance. Quiz Meisters put on a great night full of memory-testing and braintwisting. FutureNet members went home with prizes and also some new networks! NBN event: On 5 June, VIC FutureNet held a National Broadband Network (NBN) event with guest speaker NBN Deputy Chief Legal Counsel, Toby Ryston-Pratt. Members were given details about the first national high speed broadband network for Australia. We heard about the potential the NBN has to transform many aspects of our lives including home internet and telephone services in areas such as education, business, entertainment and access to online health services.

VIC UPCOMING EVENTS VIC FutureNet has a diverse range of events planned for 2013. In August, we will hold our professional seminar with resilience expert, Michael Licenblat who will teach how to bounce-back when times get tough! Also, look out for our September event, based on energy. With a high calibre of speakers, this event is not to be missed!

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Photos from the VIC FutureNet Trivia Night

Consulting Matters Features

How NAB’s ‘Break Up’ changed banking in a single day Beginning with a single tweet, advertising agency Clemenger BBDO Melbourne’s ‘Break Up’ campaign for NAB transformed the public’s perception of one of the country’s biggest banks that was famous for its closed ranks and expected ways of doing things. Differentiating themselves from the rest of the market with a game-changing campaign was a key business development tactic for NAB. This was critical for the bank, as in a market where customers often cannot see through the clutter to differentiate between brands, standing out and communicating your message clearly means the difference between winning new business and losing it to your competitor. And when you’re one of the Big Four, the stakes are pretty high. Not only did Break Up firmly establish NAB was different to the other banks, it generated record-breaking commercial and social results and set up the brand for more valued relationships with its customers. Clemenger BBDO Melbourne created a concept that challenged not only the competition, but the internal stakeholders in NAB itself. The idea was radical, revolutionary and about as far from traditional ‘safe’ bank advertising as you can get. To be frank, it scared people.

There were months of presentations, meetings, sessions and panicked phone calls. We had the deadline of Valentine’s Day to meet – if we missed it, we would lose the impact of the campaign. Break Up literally went down to the wire – we had teams on standby across Australia (it was a national launch involving thousands of people) as we waited for the final ‘yay’ or ‘nay’. It went right up to NAB CEO, Cameron Clyne for approval.

But first, a bit of history. In 2009, NAB introduced its Fair Value agenda, based on a belief that the relationship people had with their banks needed to change for the better. Over the next 18 months, NAB went about reshaping its offering to reflect that agenda by instigating changes such as the removal of monthly account fees, abolishing overdrawn account fees and offering the lowest standard variable home loan rate of the major banks. Although many of these activities were talked about – and indeed, delivered strong sales results – consumer perception was that all the banks were offering similar improvements.

Through extensive research, we unearthed the insight that would form the platform for the Break Up campaign: people didn’t expect their bank to be perfect, but they were sick of the endless collective greed. To alter people’s perception of NAB, every moment of the Break Up campaign had to help people believe the bank had changed. Working closely with NAB’s marketing and corporate affairs teams, we knew the campaign couldn’t be advertising-led. We had to communicate through a channel people would believe: the news. We ensured each individual element not only worked as a news grab but also when combined, created a much larger statement to generate the involvement and talk-ability factor we needed. The stunts, messages, seeding and all the public demonstrations of separation had been orchestrated to be shareable through social media, as well as suitable to generate news grabs for the media; a dynamic combination of activity that enabled NAB to take the initiative and establish its difference. None of us, including the client, were prepared for the overwhelming response to the idea during the period of the campaign:

COMMERCIALLY • 79 per cent increase in home loan enquiries. • 50 per cent increase in credit card applications (the week after the Break Up, credit cards experienced their highest weekly applications in NAB’s history by over 14.6 per cent). • 20 per cent increase in transaction accounts opened. • The campaign resulted in one million new customers. • Record profits for 2011 – up 19.2 per cent to $5.5bn – which NAB CEO, Cameron Clyne credited in large part to Break Up.

SOCIALLY • Delivered $5 million in earned media in a single day. • First five days of Break Up delivered 252,498 online visits to the NAB campaign

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Helicopters announced Break Up across Australia Photo courtesy of Clemenger BBDO Melbourne

• Since the launch, NAB has more than doubled its reputation for ‘doing things differently’, from 9-19 per cent, while the other banks were depositioned.

CREDIBILITY • For the first time NAB was now considered better than the other banks, this from an annualised six per cent low in December 2010, which three months later had doubled to a category leading 12 per cent.

Above: NAB’s Melbourne HQ (directly opposite ANZ’s) was wrapped in the Break Up letter Photo courtesy of Clemenger BBDO Melbourne Opposite page: Piano man played love songs through the streets of Sydney and Melbourne Photo courtesy of Clemenger BBDO Melbourne

blog (around 14,000 for the previous bestperforming NAB campaign). • Break Up #1 most discussed topic on Twitter in the nation. • Over 100,000 visits to nab.com.au/breakup blog in a single day. • 320 per cent increase in daily positive posts about NAB.

REPUTATION • The campaign catapulted NAB, literally overnight, from last of the Big Four in customer satisfaction to number one.

• In terms of establishing NAB’s ‘fairer banking’ position, a previously confused and virtually inseparable group of banks were dramatically forced apart when the Break Up hit. Suddenly NAB went from a previous 12 per cent high back in June 2010 measuring perceived ‘leadership in making banking fairer’, to a standalone 17 per cent in February 2011. • Equally dramatic was the effect on the other three major banks, which saw their ‘fairer banking’ reputations bottom out between five to eight per cent, creating a ‘fairness’ reputation gap four times larger when NAB announced its separation.

• Since breaking in February, NAB Break Up has won the world’s top creative award – a Grand Prix at Cannes and an Effie based on the results from 15 February to 31 March. Not everyone was thrilled with Break Up. The other big banks literally started shunning NAB directors in public. In fact, it became such an issue, we made a follow up campaign called ‘Unpopular’ to make light of it. Break Up stood out from the competition because it allowed NAB to act in a way that no one expected a bank to act. Since the campaign, NAB has maintained its consistency of voice and difference from the competition. And they are going to continue to surprise and delight – we’re working on the next campaign right now!

Peter Biggs CEO Clemenger BBDO Melbourne

Consulting Matters Features

Known for what you know GET MORE REPEAT AND REFERRAL SALES THROUGH THOUGHT-LEADERSHIP POSITIONING. These days, it’s not what you know – it’s who knows you for what you know. To cut through the noise in the market, and to liberate your company from the need to compete on speed and price alone; you need to capture, package and deliver world-class Intellectual Property (IP) and insight to your prospects and clients. You need to become known for what you know. This isn’t just about producing another glossy white paper or brochure. This is about shifting from simply having industry expertise, to being recognised as an industry authority. Furthermore, it’s about continuing to nurture the existing client relationships you have in order to deliver ongoing value, and to increase the familiarity of your services and awareness of the extended or additional value you can provide.

THE PUSH AND PULL OF BUSINESS DEVELOPMENT It used to be all about the push. Whoever marketed the most, or had the best sales techniques would win the game. But now there’s that new thing called the Internet (and that old thing called word of mouth), and your prospects are savvy enough to do their research first. So what to do? Some companies have a strong reputation and their business is generated by referrals and recommendations. Other companies need to invest heavily in sequenced sales strategies and bold marketing claims about their ‘commitment to excellence’. It is one thing to make a claim, but quite another to demonstrate it.

SHARE YOUR EXPERTISE LIBERALLY Without being silly and giving away critical IP, your ability and willingness to share your research and insights to the market is critical to becoming recognised as an industry authority. It’s also the key strategy to nurturing prospects, and continuing to generate sales with your existing clients.

This may be true, but what it also does is help to separate the leaders from the followers. If you’re capturing, packaging and delivering world class insight for your clients and prospects, you’re building reputation through service.

BUT WE SHARE OUR DATA ALL THE TIME! This is not about data. Nor is it about information – there’s enough of that out there already. To become known for what you know, to become a recognised authority in your field and to continue to build more repeat and referral sales, you need to share more than just facts. You need to share ideas, and insight. But where to start?

RELEVANCE BEFORE ELOQUENCE Start with what’s relevant. What are your clients concerned about? Where are the gaps in their knowledge? And where’s the friction in your sales process? If you’re frustrated by crappy decisions you see clients make – the shortcuts and cost savings that end up costing more, or the designs that don’t factor in near-future trends – capture, package and share your insight on that. Publish articles and videos, speak at events and contribute to forums. But if you’re going to share your best ideas and insights – you might want to do so eloquently, in a way that encompasses the four dimensions of an idea.

THE FOUR DIMENSIONS OF AN IDEA This is the part where many organisations fall apart. Great ideas get neutered by committees and picked apart by the analytical. By the time they reach the prospect, they’ve become so sanitised and rounded that they lose all edge. But more importantly, they tend to lose all emotive potential and story. To overcome this, make sure you flesh out your thinking across the two main spectrums – big picture to detailed; left brain (logical) to right brain (emotive). Have a look at the graph opposite for an idea.

Companies can do this in a number of ways:

It’s all about positioning.

• Contributing to industry forums and publications (or creating your own);

Your ability to capture, package and share your best insights and ideas, to serve existing clients and educate prospects, is key to shifting from expertise from authority, and generating more repeat and referral sales.

• Speaking at industry events (or hosting your own); and • Sharing internal case studies. The key to these activities is the listening you do to your clients. What are their concerns and how can your understanding and collective experiences empower them to make better decisions? If you were coming from a scarcity mindset, you might feel that you’re just giving stuff away. Your competitors might just take it, or your prospects might learn from you and then not engage your services anyway.

Dr Jason Fox Dr Jason Fox is a motivation design expert who helps organisations make clever happen by leveraging their expertise for greater commercial success. Learn more at www.drjasonfox.com

Features Consulting Matters

FOUR DIMENSIONS OF AN IDEA Big picture, logical This is a great place to start. If you can place your insights into a simple model, people can then map your thinking to an overarching context. Tie it back to their world and their challenges, and you’ll have a winning framework.

BIG PICTURE

Logical, detailed Models

Once you’ve established the overarching framework, you can then plunge into detailed analysis, case studies and statistics. Engineers and other technical professionals can get lost in this space if we’re not careful, which is why we need to incorporate the right side into the equation.

Stories

LOGICAL

EMOTIVE

Emotive, detailed Facts are brought to life through stories. Information is made relevant when people can relate to how it may affect them. Get good at sharing the story behind the study.

Studies

Meaning

Big picture, emotive

DETAILED

The key question you need to answer when sharing any idea is, “What’s this really about?” People won’t remember all of the details, but they will remember the meaning. To be known for what you know, you need to make it easy for your ideas and insight to be attached to meaning. Metaphors and analogies (‘what’s it like?’) can serve really well in this instance. But so can a single word.

The full-spectrum thinking model (adapted with hat tips to Matt Church & Thought Leaders Global)

New monthly webinar series Develop your skill set and earn valuable CPD points without taking time out of the office and losing billable hours. 18 July: Professional Indemnity Insurance, your questions answered Speaker: Bovill Risk & Insurance Consultants (BRIC) Broking Manager, Darren Pavic If you find professional indemnity insurance mindboggling, you’re not alone. Whether working as a sole practitioner or for a large, diversified company, it’s critical that as a consultant, you’re well informed in this area as the repercussions can pose a significant threat to your firm and in some cases, to your personal livelihood. To help educate consultants on critical PI insurance issues, Consult Australia is running a one hour lunchtime webinar. 25 July: Core Principles of the World’s Best Companies Speaker: Consult Australia course expert and University of Melbourne Professor of Management, Professor Danny Samson This lunchtime webinar will provide a briefing of those elements that make organisations work, including: strategic alignment; distributed leadership; up-front integration; measurement/ reporting; implementation excellence, and others. After attending this webinar participants will be able to assess their own organisation and can specify an appropriate ‘business improvement strategy’. Consult Australia Members - $20.00 Non-Members - $30.00 Group booking discounts available. For more information email education@consultaustralia.com.au or visit www.consultaustralia.com.au

Consulting Matters Features

How profile builds profile SOME PROFESSIONAL SERVICES FIRMS HAVE LONG WONDERED HOW IT IS THAT THEIR COMPETITORS ARE ALWAYS IN THE MEDIA, WHILE THEY CAN’T SEEM TO GET TRACTION. PUBLIC RELATIONS EXPERT, KIERAN MOORE UNRAVELS THE ART OF PROFILE BUILDING.

Internet population

80.1%

Australian population – 21,262,641

80.1% of Australians use the Internet. Internet users – 17,033,826

Top 5 social media channels Top 5 websites (% reach) ninemsn yahoo Live.com youtube

Facebook 17,000m Page views

69.5% reach YouTube 1,000m Page views

56.9% reach

25.8%

Wikipedia 1,200m Page views

28.7%

21.7% reach

47%

Blogspot 61m Page views

13.4% reach

56.9%

Facebook

69.5%

Twitter 60m Page views

11.4% reach

Source: Australian Bureau of Statistics

CONTENT SHOULD NOT BE A SALES PITCH AND MUST, IN SOME WAY, ADD VALUE TO THE AUDIENCE. It could be said that there is a simple answer to the question of how professional services firms can leverage their profile through the media: have something to say, then say it. But after helping scores of professional services firms leverage their profile, we know that like all seemingly simple answers, it’s the devil in the detail that makes the difference. For starters, most firms don’t really know what their story is. They know everyone works hard, they’re pretty confident that they do a good job and they believe their clients are happy – but try telling that to the world and the world will say, “So what?” To get it right, firstly you have got to work out what it is you want to achieve, and more importantly, why you want to achieve that goal. At Ogilvy we call it the ‘Do’ brief. This involves close consultation with the client as we drill down together to try and ascertain what is really wanted and why. The motive behind ‘we want to raise our profile’ could be anything from a celebration of success or desperation to plug a leaking client list, through to profiling the managing

partner or attracting the smartest new graduates. Each case is different and each one requires a different and compelling story. Following that comes the decision on who you need to influence and how best to reach them. How big is your universe? There’s no point in wallpapering the world if you don’t need to. Do you want to talk to existing clients or potential clients, employees or other stakeholders such as government, industry groups or community organisations? Is it best to reach them through Twitter or Facebook or other social media? If traditional media is the right vehicle then are you looking at trade or women’s magazines, the AFR or the local newspaper? Would you run from 7.30 but love A Current Affair? Maybe the answer is a keynote address at a conference or a roundtable discussion with key contacts. Or, as we have done with one prominent organisation, do you identify a gap in the market and develop a detailed annual research paper which approaches and appraises that gap so that your firm ends up ‘owning’ a particularly important industry space?

Then comes the content. What messages do you want to get across? Is your story in the form of hard news, a point of view about a subject of interest or a profile of your organisation and the people in it? At my firm we run messaging workshops which enable firms to discover what it is that makes them different – the point of sale for any organisation – and gives them a framework in which to tell that message. Messaging is an exact art and is at the heart of all successful campaigns. We use a three step process – identifier, differentiator and impact, benefit – to fashion meaningful, lively messages out of bland statements. Each message must be bolstered by data that supports the content of the message. Case studies, independent data and third party endorsements are just some of the options. They are vital and each must be identified and researched in order to ensure the validity of statements. Content needs to be created with the end audience in mind. You don’t speak the same way to a conference of your peers, who know the jargon and the ‘story so far’, as you do to a journalist who might be blissfully unaware of your industry and your firm and who may be completely baffled when you use the acronyms and jargon of an insider. Content has to be fashioned into a compelling story that delivers the messages in a way that resonates with each particular audience – whether that is through a speech, a video, an interview with a journalist or a written opinion article. Content should not be a sales pitch and must, in some way, add value to the audience. Photographs, videos and infographics add depth and texture to any presentation so must be sourced and produced. It is also essential that social media be considered. Instagram, Twitter, Facebook, Vimeo, Tumblr, Foursquare, YouTube, Linkedin, Pinterest and blogs all add to the various ways that firms can connect with relevant audiences. For professional services firms having something to say and saying it can be a worthwhile exercise. Just don’t make the mistake of thinking it’s simple. Kieran Moore CEO Ogilvy Public Relations

Consulting Matters

Upfront collaboration the key to successful delivery of projects COLLABORATION IS A CORE FOCUS FOR BROOKFIELD MULTIPLEX AS WE RECOGNISE ITS POTENTIAL TO IMPACT THE FUTURE GROWTH AND SUCCESS OF OUR ORGANISATION, AS WELL AS THOSE WHOM WE WORK WITH.

Fiona Stanley Hospital Photo courtesy of Brookefield Multiplex

Consulting Matters Features

Over the past few months, we have been reflecting on the maturity of collaboration across the business to ensure we have successfully harnessed the best internal knowledge and experience from across our teams. ‘Collaboration for Business Growth’ was consequently selected as a strategic business initiative to be explored by our future leaders as part of a 12 month leadership program. While the business case for collaboration internally was strong and the level of activity was already high, we identified that the larger and more valuable opportunity to further develop collaboration was with those team members outside of our business – including consultants, subcontractors and our supply chain. We recognise that in order to outperform for clients, we need to unlock the skills and capability of everyone involved in a project. Our research has shown us that the best way to do this is through up-front collaboration. In 2009, Brookfield Multiplex carried out an Operational Excellence Study to determine the best way to optimise project performance. It assessed 259 projects delivered across different regions and sectors to uncover performance trends. The study highlighted that our potential ability to influence project outcomes (including safety, quality, sustainability, time and cost) was much greater in the pre-planning stage than in the construction phase. It showed that as project costs accrue, our ability to impact cost and project outcomes declines. So while we accrue the greatest cost during construction, we can have the greatest impact on outcomes during pre-construction. With this in mind we rigorously chase opportunities to collaborate with all of the players that go to making a successful project, and we do it at the earliest point possible. We optimise these opportunities for collaboration by investing time, thinking upfront, and seeking the input of highly-skilled specialist consultants. Our Operational Excellence Study has been supported by several external studies that show the benefits of upfront collaboration. Research is now showing that while an upfront approach is important for all projects, it is absolutely vital for ‘megaprojects’. Data from more than 300 global megaprojects shows that 65 per cent of industrial projects with budgets larger than US$1 billion in 2010 failed to meet business objectives. Either budgets were exceeded or schedules slipped by more than 25 per cent, or severe operational problems occurred. The failure rate was twice the rate of smaller projects (Merrow, E., ‘Industrial Megaprojects’, 2011). The opportunity to improve efficiency and mitigate the risk of failure, particularly in the early stages of these megaprojects becomes clear. Brookfield Multiplex has been applying this research to the $2 billion Fiona Stanley Hospital project in WA where it is the Managing Contractor. Fiona Stanley Hospital is the largest infrastructure project ever undertaken by the West Australian Government, with eight separate buildings and more than 200 user groups. Whilst 90 per cent complete, it is in rare company for a job of its size to be on time and under budget.

Features Consulting Matters

Fiona Stanley Hospital Photo courtesy of Brookefield Multiplex

Consulting Matters Features

Brookfield Multiplex Operational Excellence Study Image courtesy of Brookfield Multiplex

One of the greatest challenges in successfully implementing megaprojects is enabling all project stakeholders to work together collaboratively in a team. Brookfield Multiplex was able to overcome this at Fiona Stanley Hospital through the Early Contractor Involvement (ECI) model. ECI is a method of contracting where the contractor is introduced to the project as early as possible. It enables all parties to come together and share skills and knowledge before commencing detailed works. The project scope can also be collaboratively agreed, with risks and opportunities collectively identified and realistically assessed. 100 per cent of ECI projects undertaken by Brookfield Multiplex to date have been delivered under budget, demonstrating the value of collaboration between the project team at the front end. At Fiona Stanley Hospital, ECI enabled the project team to value engineer the design of the hospital to ensure it met its programme requirements. Brookfield Multiplex was also able to resolve buildability issues before the project became too advanced, with cost savings passed back to the client. All parties shared an office on the construction site and engaged regularly, on both an informal and formal basis, to ensure swift resolution of project issues. The physical set-up facilitated a culture of shared performance with the entire project team working towards ‘best for project’ outcomes. Collaboration at the front-end stage of the Fiona Stanley Hospital project has set us up for the ongoing success of this huge project. With the project now 90 per cent complete, it is several weeks ahead of schedule and the relationship between the client, contractor and consultants remains strong. A collaborative model and approach is used on all of our projects irrespective of their size and in all of our business dealings even outside of projects. As such, collaboration is reflected as one of Brookfield Multiplex’s core values.

Don Aroney Executive Director of Operations Brookfield Multiplex

WE RECOGNISE THAT IN ORDER TO OUTPERFORM FOR CLIENTS, WE NEED TO UNLOCK THE SKILLS AND CAPABILITY OF EVERYONE INVOLVED IN A PROJECT.

Features Consulting Matters

Three characteristics of a winning professional services firm A WINNING PROFESSIONAL SERVICES FIRM MAY BE DEFINED AS ONE THAT CONSISTENTLY OUT-PERFORMS ITS CLOSEST COMPETITORS OVER AN EXTENDED PERIOD OF TIME. WINNING FIRMS HAVE THREE CHARACTERISTICS: INTENSE CLIENT FOCUS; A HIGH PERFORMANCE CULTURE; AND CONSISTENCY IN HOW THEY BEHAVE.

These hallmarks are illustrated by a case study of a mid-size Australian professional services firm serving clients in the built environment. With three main lines of service in 2006 the firm was struggling to grow, let alone make an acceptable return. At that time research showed the firm enjoyed a low awareness of the range and depth of its expertise.

Winning firms have three characteristics: intense client focus; a high performance culture; and consistency in how they behave. One of the principals was heard to say in a moment of frustration, “Even our own clients don’t recognise us as expert leaders in the services they use.” The chart (top right) proves he was right. The chart reveals the extent of the firm’s difficulty. Despite having some of the best practitioners in the industry, the research indicated that the firm’s reputation for expertise was well behind that of its competitors in its key disciplines. The analysis is presented with the firm regarded by the market as the very best in each service line indexed to 100. In Service 1 the subject firm in this case study scored 27, in Service 2 it scored 31, and Service 3 the score was 7; compared with the averages of its close competitors of 62, 57 and 37, respectively. These indices explain a large part of the firm’s poor growth. It was not seen as particularly distinctive in ways that appealed to prospective clients, or in ways that justified any price premium for existing clients. In other words the firm was undifferentiated. To remedy the situation, the firm decided to focus its break-out strategy on the largest of their specialist service lines and on its culture. The first thing the firm did was to communicate its recent involvement in several iconic projects to the market and systematically promote the thought-leadership capabilities of their gurus in carefully selected media. Furthermore, every few months they presented one or more unsolicited proposals centred on this service line to key existing and prospective clients. This was done to demonstrate their deep knowledge of the clients’ industries and businesses and the firm’s superior technical expertise.

Summary of research showing weak market appreciation of the firm’s expertise.

(RFPs) from new clients more than doubled. Staff engagement rose and growth and profitability were progressively restored. The moral of this story is that winning professional services firms are the very best in the ways they serve their clients and in turn in the way they nurture a high performance culture. In winning firms, first and foremost all staff know that clients come first. They understand the primary reason for the firm’s existence is to meet clients’ needs effectively and efficiently. As the legendary Jan Carlzon stressed at SAS (Scandinavian Airlines System) in the 1990s – you either serve clients or serve someone in the firm who is directly serving clients. Carlzon famously said, “If you can’t work out where and how you fit in this chain of service, then you don’t belong in the firm.” Second, winning firms regard their culture and their people as being as important as their clients. They know that how staff feel they are treated by their employer, is how they in-turn treat their clients. This is a variation on the famous service profit chain in which happy staff lead to happy clients and in-turn to happy owners. And the third, and most important factor is that winning firms are consistent. Beaton’s research shows consistency is the key to being truly excellent in how the client service experience is managed and a high performance culture is built. There’s a saying in my former profession of medicine that, ‘There’s no such thing as a minor operation.’ This is also true in the business professions. Clients have very high expectations, so the slightest of errors, delays or brusqueness is noted and is damaging. Every touch point, by every person in the firm, every day with every client adds up.

Internally, a program was implemented to create a high performance culture in which everyone was supported to be at the top of their game in serving external and internal clients. The six principals led the way as role models.

Winning firms actively and distinctively manage their cultures to make excellence their mission. It shows in their passion for their people.

Within a year awareness of the firm’s expertise in the selected service line, and others, lifted measurably and Request For Proposals

George Beaton Beaton Capital and Beaton Research + Consulting

Consulting Matters Features

Why master networkers have the edge in a tight market

MANY PROFESSIONAL SERVICES FIRMS ARE ENCOURAGING STAFF TO ‘GET OUT AND NETWORK’. FOR MANY FIRMS IT IS A CASE OF BETTER LATE THAN NEVER – AS LONG AS YOU ARE CLEAR ABOUT EXACTLY WHAT YOU WANT YOUR TEAM TO DO. Master networkers consistently network through strong and weak markets, staying connected, expanding their networks and keeping their ear to the ground, rather than waiting until there only are few projects on the books.

as soon as possible and allocate time either side of the event with the intention of arriving early and leaving late.

hey make the most of their event attendance, rather than arriving T just before the meal is served and leaving as soon as the speaker finishes. They have learned that the pre and post speaker time is a great opportunity to make new connections and reconnect.

hey know the mantra of master networkers is ‘act like the host, T not the guest’ at networking events. They are always on the lookout for people who look a little out of place or as though are may be ‘first timers.’ Making them feel comfortable and introducing them to their networks, often puts that person at ease and the master networker is always remembered for their hospitality.

So what do master networkers know that some firms may have forgotten?

hey know that the market will eventually improve and they have T adapted their networking activity accordingly. They know that the future will still hold versions of their past collaborations, so they stay connected.

hen there are new players in the market, or revamped or merged W firms, they make sure that they introduce themselves to those competitors and wish them well. Who knows, one day they might be collaborating with them for a joint project.

ultural intelligence is a skill they have learned in recent years. C They realised that as the national and global marketplace opened up for many firms, it was imperative that they expanded their knowledge and respect for different cultures. They realised that culture shock (feeling uncomfortable and at times confused, when situations were different or out of their control, when dealing with new cultures) was all part of immersing themselves in that new culture.

4 This was the basis of building cross-cultural networks. They didn’t

wait until the need was critical; they built cross-cultural networks long before they needed them. They also became very skilled at linking ex-pats, whether that’s linking people from other countries, or other cities. Having experienced isolation themselves, they know what a huge difference a kindred spirit connection can make to someone new to a city.

hey quickly learned as they expanded their cross-cultural T networks that 1+1=11. Once they took the time to get to know and understand someone’s culture, that individual would often open up their networks to them – but only after trust had been built. udgeting for attendance and showing up at industry events and B strategic conferences is part of their monthly networking activity. They realise that industry visibility is important and even when they are time-poor; they still make the effort to attend. They realise that although a great speaker might draw a large crowd, they actually attend networking events to connect with the audience, not the speaker. hey use a networking checklist prior to attending events so they T can measure their outcomes. On receipt of the invitation, they ask themselves, ‘Why is this good event for me to attend, who might be there and what can I potentially achieve?’ They book and prepay

Social media may not have been something they were keen to embrace, but they could see where LinkedIn was moving and jumped on board. They now spend on average fifteen minutes per day on Linkedin reconnecting with lapsed connections, participating in strategic group discussions, recommending others and maintaining their networks.

You might be thinking, where in the world do they find time to actually work, if they are doing all these things well? The answer is systems. In a nutshell the networking activity plan that you create with your team may include: • Attendance at one to two industry networking events each month; • Keeping in touch with networks via email, regular phone calls and text messages; • Aiming to regularly make connections for others, particularly expats and cross-cultural networks; • Saying and writing ‘thank you’ often. It’s a very simple habit that is always appreciated; • Spending on average 15 minutes per day on LinkedIn; • Discussing connections and progress with the team; and • Being very clear on why you are networking and what specifically you want to achieve. Any master networker will tell you, none of this is rocket science. But when done consistently it gets results, even when the market is tight.

Robyn Henderson Networking to Win www.networkingtowin.com.au

Features Consulting Matters

Learning to say ‘no’

SAYING ‘NO’ AND STOPPING WHAT YOU ARE DOING CAN BE IMPORTANT FACTORS IN THE PURSUIT OF NEW BUSINESS. In the words of Harvard Professor and leading authority on company strategy, Michael Porter, “The essence of strategy is choosing what not to do.” Perhaps more than most others, professional services firms focus on the importance of business development and ‘client sided thinking’; it is considered critical to winning new business and managing relationships. Perhaps fewer firms have considered that a way to challenge themselves to do better – to stretch growth targets and refresh their approach to new business – can be achieved by learning to say ‘no’. It is important that firms do not let the ‘business as usual’ approach undermine efforts to change and grow. Many assume that a new business strategy and new targets can be achieved without significant change, but this is rarely the case. To deliver genuine change at Northrop, we created a clear plan of action with measurable outcomes and allocated time to our new business programme. We introduced meetings focussed entirely on business development and sessions where we shared cross-company best-practice to lift the bar for all staff. As part of this process it became increasingly important to recognise that one firm cannot be all things to all people and that making choices and trade-offs is an essential part of a new business strategy. Being selective about which new business opportunity to pursue, and sometimes saying ‘no’, can be challenging and often uncomfortable but has the potential to shape a business. The fear of saying ‘no’ comes from the fact that many businesses are concerned about missing a financial opportunity or the potential impact of being taken off future tenders or other projects. The reality is that winning the wrong sort of business often

becomes an even more challenging, timeconsuming, margin stripping and reputationtarnishing exercise than not winning it at all. In considering which projects to take on, it is vital that a set of criteria is established and that firms are open to saying ‘no’ if it doesn’t tick enough boxes. At Northrop, our criteria are relatively simple and are based around three key areas: fit; canvas; and money. ‘Fit’ refers to the fit between the two cultures and how well they would work together; ‘canvas’ concerns the scope of work and opportunities for growth, learning and cross-discipline involvement and; ‘money’ is the financial criteria. It is critical that if your firm chooses to say no, you are clear about the motives behind the decision, able to provide rational reasons and ensure the message is delivered with honesty. This can be the difference between the door closing on you, or staying open for future projects. It is important that when saying no, your firm remains true to itself. Having clarity of purpose – a very clear idea of who you are (and who you’re not), what you stand for, what works for your culture, your value proposition and a clear idea of where you are going – will help to determine which projects to focus your energy on.

New business development doesn’t work in isolation; it needs to be integrated and overlap with all aspects of business. To address this at Northrop we have a business development team, made up of our senior people, who meet regularly and ensure integrated leadership. In the two years since adopting this approach of saying ‘no’ where we saw fit, our business has achieved significant growth whilst still maintaining and growing our relationships with our best clients and winning significant new business. In adopting an approach that allows you to say ‘no’ when you need to, there will be a number of benefits for your business: • Your staff will no longer waste time, effort and resources chasing the wrong business; • You will have time to pursue the right opportunities; • You will be focused on servicing those clients who fit with your business strategy; and • You will be more memorable and will likely gain respect for knowing what you want and having the courage to say it.

Jamie Shelton Northrop Engineers

Following this process will enable your firm to become proactive in seeking new business and target the prospects you want, rather than being re-active and accepting the ones that happen to come to you.

It is critical that if your firm chooses to say no, you are clear about the motives behind the decision, provide rational reasons and ensure the message is delivered with honesty.

Consulting Matters Features

Market opportunities in the years ahead SHORT-TERM OUTLOOK As the boom in Australian mine construction nears its peak, consulting opportunities in mineral services have been falling fast. That is not surprising. Most forecasters including Treasury, the Reserve Bank and many private sector economists, have been well aware that as growth in China and other developing economies inevitably slows – and as world commodity production to meet the needs of these industrialising countries grows - commodity prices would fall, making new resource projects less attractive. That has already happened. Over the past year iron ore and oil prices have fallen by seven per cent, the price of thermal coal by 10 per cent and coking coal by 27 per cent. Over the past three years costs in Australia have increased, partly because of wage increases and poor project control, but mainly because the high Australian dollar has made investment here more expensive for the mainly US-listed resource companies. A consequence of this is that the mood has changed: from hellbent expansion in 2011/12, when the volume of engineering construction work done on mining, oil and gas projects increased by an extraordinary 80 per cent, to one of extreme caution this year, when growth is expected to slow to eight per cent. Construction will probably peak towards the end of 2013 or early in 2014.

an acceleration of world growth from 3.3 per cent in 2013 to four per cent next year and 4.4 per cent in 2015. Although Europe remains a basket case likely to generate further financial crises, the US is recovering steadily, and the developing world seems set to grow at a healthy six per cent a year. That scenario should see steady growth in the demand for Australian commodities and justify further expansion of Australian mineral production. Our forecasts suggest that average annual consulting fees earned from mining, oil and gas projects over the five years to 2016/17 will be only about six per cent less than the $8 billion of fees earned in 2011/12 and will remain by far the biggest market. The next biggest opportunity lies in road and highway construction, estimated to generate fees averaging some $3.2 billion a year in the five years ahead, compared with $2.8 billion last year. What we think will be the next four largest national markets – electricity, railways, telecommunications and water and sewerage – are all engineering construction markets. The biggest non-residential building markets are likely to be offices and retail and wholesale premises, both of which are forecast to generate more fees, on average over the next five years, than they did last year.

If the mood change was not surprising, its suddenness was. This, it seems, was caused by fears of a slowdown in world growth, combined with the realisation – especially by shareholders – that some of the recent expansion had been ill-judged and poorly executed.

Opportunities will of course vary from state to state, and over the next few years, they are likely to vary with the willingness of both state and federal governments to fund infrastructure projects. There is a huge opportunity here for consultants who can come up with new models of financing which raise the funds needed without jeopardising government credit ratings.

In the current environment, as companies cancel and postpone previously planned developments, consulting opportunities lie in finishing those projects that are already underway and developing cost-reduction processes for those committed but yet to start.

In Queensland and Western Australia, mining, oil and gas will continue to be the biggest market, followed in Queensland by roads, electricity and water and sewerage; and in Western Australia by railways, harbours and roads.

Short-term prospects are little better in the non-mining segments of the market; business confidence remains weak, lending for new investment is subdued, and approvals of industrial and commercial building have stayed low. Despite this, some big hospital projects are helping to support building activity in Victoria, South Australia and Queensland. In most states however, budget constraints and fear of borrowing are limiting commencements of much-needed infrastructure projects.

In New South Wales, roads, electricity and railways are forecast to be the biggest markets; in Victoria, roads, electricity, shops and offices will see most activity; and in South Australia, roads, electricity, and mining, oil and gas are expected to be the leaders.

The share prices of the six listed engineering consulting companies reflect this outlook. All are well below the highs recorded over the past year: the biggest company by 16 per cent; the smallest by 80 per cent; and others by between 26 and 54 per cent.

STRATEGY CONSIDERATIONS How long will this environment last? It’s hard to be sure, but leading indicators of world growth have already picked up, and the International Monetary Fund is forecasting

Geoffrey Bills

Economic

Forecast Geoffrey Bills is Consult Australia’s economist and author of Economic Forecast

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AT THE END OF 2011, EXPORT REVENUE FROM MINERAL AND ENERGY COMMODITIES ACCOUNTED FOR 60 PER CENT OF AUSTRALIA’S TOTAL EXPORT DOLLARS, WITH MINING CONTRIBUTING 11 PER CENT TO AUSTRALIA’S GDP. MORE THAN 220,000 AUSTRALIANS WERE EMPLOYED IN MINING IN 2011 - AN INCREASE OF 183 PER CENT IN THE LAST 10 YEARS. - Department of Foreign Affairs and Trade 2012, Trade Matters 2012 Australia – trading with the world, viewed 25 June <www.dfat.gov.au/tradematters/>

North Rankin A Platform Photo courtesy of Woodside

Consulting Matters Resources special

Australia’s strategic location in Asia is often cited as a key driver of the resource industry’s competitiveness; however there are fast emerging competitors in this region.

Workplace focus key to Australia’s productivity challenge THE AUSTRALIAN MINES AND METALS ASSOCIATION (AMMA) IS ACTIVELY EXPLORING HOW OUR NATION’S MEGA-RESOURCES PROJECTS COULD PULL AUSTRALIA FROM ITS PRODUCTIVITY SLUMP, BUT WITH GREATER CHALLENGES EMERGING IN THIS AREA, THIS CAN ONLY OCCUR THROUGH A MULTI-FACETED APPROACH TO LABOUR EFFICIENCY.

In its recently published discussion paper, Resource Industry Productivity: Analysis and Policy Options AMMA details how Australia’s resource industry is embarking on a multi-faceted approach to boosting labour productivity, involving both legislative and non-legislative measures. Lead author on the paper, Luke Achterstraat notes productivity in the resource industry has been in decline since 2000-01 and is now 45 per cent off its peak, evident in ABS data. Although this situation is not unique to Australia, AMMA’s Brisbane-based policy advisor believes that on a global scale, our nation can no longer rely on its ‘lucky’ reputation. “The surge in commodity prices, an investment boom and resource depletion have all been cited for initiating a steady but inevitable decline in multifactor productivity, which takes into account the effects of both labour and capital,” says Achterstraat.

“In particular, capital productivity is unlikely to pick up in the short-term given the sheer volume of investment already in the pipeline and the lag effect between investment and output. “This means the key to enhancing productivity in the mining sector lies largely in raising labour productivity.” Achterstraat says productivity growth is the most important determinant of long-running improvements in economic prosperity. Reversing the downward trend in Australia hinges on the ability to assess the impacts of global investment competition and improve both legislative and non-legislative productivity initiatives. “The industry is now a ‘high-cost, lowproductivity’ place to invest and do business,” he said. “Employers face competition from emerging resource nations and, combined with escalating costs, there is serious concern for

the $383 billion of investment currently under consideration across the industry. “Globally significant projects worth billions of dollars and thousands of jobs will continue to go offshore under these uncompetitive conditions.” An examination of the World Economic Forum’s (WEF) reported trends in the global economy further illustrates this decline in our competitiveness. In 2010-11, soon after the commencement of the Fair Work Act, only 13.1 per cent of respondents nominated restrictive labour regulation as the most problematic factor to doing business in Australia. That rose to 16.6 per cent in 2011-12 and 20.3 per cent in the WEF’s most recent 2012-13 report. Australia’s strategic location in Asia is often cited as a key driver of the resource industry’s competitiveness; however there are fast emerging competitors in this region.

Resources special Consulting Matters

Mongolia was the world’s fastest growing economy in 2011, driven by foreign investment and rapid developments in its rich coal, copper and gold mining sectors. “While Australia will never be able to compete against many of our Asian neighbours on wage costs, it is concerning to see our industry at a distinct cost disadvantage compared to an economy of comparable living standards such as the US,” said Achterstraat. “Recent project scale-backs indicate that cost escalations are impacting jobs and investment. We can no longer rely on high commodity prices to underwrite our revenues, jobs and national income.” To underpin an increase in resource industry labour productivity, Achterstraat says the case for workplace relations reform is undeniable. He notes AMMA’s key priority areas for workplace relations reform works to address these issues and, if adopted by the next Federal Government, Australia’s resource industry would be positioned to become internationally competitive, productive and sustainable. These key reform areas include removing unions’ ability to hold-up new resources projects through what is called ‘greenfield’ agreement making. The national resource industry employer group also backs the Federal Coalition’s policy to wind-back the ‘out of control’ rights unions currently have to enter and disrupt Australian workplaces. While maintaining that Australia’s workplace relations laws need urgent reform, Achterstraat explains AMMA is also focused on non-legislative initiatives to complement the changes. The productivity discussion paper sets out six proposals in the areas of investment, work practices, leadership, technology, productive bargaining and skills development to boost productivity and collaboration in the resource industry. “AMMA members report that driving productivity gains within their respective organisations is very much on their agenda as a corporate priority,” says Achterstraat.

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“For example, the creation of a Productivity Investment Index, developed from a survey of resource enterprises, would collate industry best practice to support the business case for employer investment in employee engagement, process improvements and technological adaption.

• Contracting issues

“Additionally, a grassroots style research project into remote Fly-In, Fly-Out (FIFO) work sites could identify innovative work practices and practical ways to increase productivity at the coal face.

• Professional Indemnity (PI) Insurance

“We also believe there is scope to reignite the creativity and commitment of employers and employees to address productivity gains in workplace bargaining efforts. “Ultimately, a multi-faceted approach is required to ensure our industry delivers on its great promise. A genuine discussion around both the workplace relations and nonworkplace relations measures is required to restore resource industry productivity.”

• Liability and relief • Construction contracts & consultancy agreements • Onerous contract terms • Ending a contract • Dispute resolution

Book now For more course information and dates contact Alexia Lidas on (02) 9922 4711 or education@consultaustralia.com.au

$2,645 for Consult Australia members $2,940 for non members Group booking and in-house discounts available

AMMA (Australian Mines and Metal Association) AMMA has been Australia’s largest resource industry employer group for 95 years. Its members include companies involved in every sub-sector of Australia’s mining, oil, gas and servicing industries.

(All prices include GST)

Consulting Matters Resources special

Climatic challenges for the mining industry: lessons from Queensland’s past weather events NUMEROUS STUDIES HAVE DOCUMENTED AUSTRALIA’S HIGH VULNERABILITY TO BOTH EXTREME NATURAL CLIMATE VARIABILITY AND ANTHROPOGENIC CLIMATIC CHANGES. IT IS ALSO ESTABLISHED THAT OUR NATIONAL AND REGIONAL ECONOMIC STRUCTURES SIGNIFICANTLY RELY ON MINING-LED EXPORT EARNINGS FOR SOCIO-ECONOMIC DEVELOPMENT. THERE IS A CRITICAL INTERPLAY BETWEEN THESE TWO FACTORS, WHICH INDUSTRY MUST RECOGNISE.

On the one hand, the mining industry is directly dependent upon suitable natural conditions to extract resources and process them for future domestic and international use. Any disruptions to these conditions can thus threaten the long-term viability of the industry. On the other hand, the resource sector’s potential to significantly impact on environments and communities during extreme weather events makes the minerals sector an important area of focus for climate adaptation research. It is critical that the industry works together with all its stakeholders to recognise the complex relationship between changes to natural environmental conditions and the range of potential impacts on business, and devise strategies that can help them to successfully adapt to ongoing climatic challenges. Currently, the awareness and understanding of this issue is inadequate. Lessons from past experiences in dealing with climate-induced disasters, particularly floods, provides an effective pathway forward to strengthen adaptive capacity and better plan for the future sustainability of Australia’s resourcedependent regions. Extreme flood and cyclone events witnessed in central Queensland since 2008 highlight the range of direct and flow-on impacts – social, economic and environmental – felt by the mining industry

and nearby communities. Our experience in dealing with those impacts in turn provide useful lessons for planning and better preparing the resources industry to address future climatic events. Key outtakes from these experiences include: • The resources sector is largely characterised by short-lived industry memory due to high staff turnover. Production-driven planning agendas also often lead to shortsightedness, which in turn prevent the industry from planning ahead in order to deal with sudden intense changes in the natural climate. • There is a need for the industry to adopt a culture of water-use efficiency, while being aware that the switch from a very dry to a very wet season may be just around the corner. Following natural disasters over the last few years, the industry appreciates the need to be well planned and flexible, but there remains much scope for further improvement. • It is important that the regulatory conditions authorising mine water releases and monitoring water quality during floods are practically achievable and therefore reasonable, effective and consistent. • Early and timely collaboration between the mining industry, environmental groups and state agencies can help address the inherent tension relating to sustaining the objectives of economic development as

It is critical that the industry works together with all its stakeholders to recognise the complex relationship between changes to natural environmental conditions and the range of potential impacts on business, and devise strategies that can help successfully adapt to ongoing climatic challenges.

Resources special Consulting Matters

well as region-wide high environmental quality. The nature of this collaboration should be ongoing rather than sporadic and needs-based. • Industry can gain much from working together with regulators to incorporate site-specific requirements concerning water quality and quantity in future adaptation planning. This will further help devise regulatory conditions that are practically achievable and consistent in times of climatic crises. • Mines have provided an alternative source of employment in drought-stricken farming-based communities, thereby keeping communities and families together during financially tough times. • Innovation – technological, entrepreneurial and social – remains central to maintaining a positive long-term relationship among various mining stakeholders. The role of innovation in the resource industry’s adaptation to a changing climate The resources sector currently faces a number of barriers that prevent it from developing a long-term coherent adaptation policy. Consultations with stakeholders both within and outside the industry highlighted the role of innovation in addressing these barriers. These innovations may be at an organisational level or even industry-wide, and do not necessarily come with huge financial costs. It can be said however that returns from making effective, easy-to-implement and systemic innovative changes to current industry-government-civil society interactions may further promote the sector’s long-term vitality and viability. Examples of innovative changes include, inter alia: • Create and regularly update organisational databanks of information that can track longitudinal data relating to climatic impacts, responses, successful and or failed strategies and lessons learnt; • Improve intra-organisation communication channels to ensure that decision makers and senior management understand and embrace technical challenges that may interfere with achieving short-term production targets; and • Use a neutral, third party agent to enable a consistent approach to providing timely, factual communication in lay language that addresses ongoing community-wide misperceptions. Currently, communication and information sharing is largely sporadic and need-based. The role of this neutral player is also key to balancing greater – often misinformed – expectations about the mining industry’s responsibility towards ecological sustainability visà-vis other industries, such as agriculture and media.

Dr Vigya Sharma Centre for Social Responsibility in Mining The University of Queensland

Safety in DeSign CPD Are you aware of your duties and obligations under the new WHS legislation? Attend this course to learn vital information on: • Designer duties under current legislation • Hazard Identification tools • Risk assessment, control, and management • Safety in Design procedures and documentation • Best practice examples • Safety in Design resources • Includes the Safety in Design Tool Kit

Book now For more course information and dates contact Alexia Lidas on (02) 9922 4711 or education@consultaustralia.com.au

$1,650 for Consult Australia members $2,530 for non members The information contained in this article is from a project funded by the National Climate Change Adaptation Research Facility. It was undertaken by researchers at the Centre for Social Responsibility in Mining, The University of Queensland and the CSIRO. For a copy of the full report, please visit http://www.nccarf.edu.au/publications/flood-resiliencelessons-mining-industry

Group booking and in-house discounts available (All prices include GST)

Economic

Forecast

June 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 The latest half-yearly forecasts by the International Monetary Fund (April 2013) show that world growth slowed from 4 per cent in 2011 to 3.2 per cent in 2012. The IMF predicts that growth will increase only slightly to 3.3 per cent in 2013 but strengthen to 4 per cent in 2014. Growth in our trading partners’ economies is expected to exceed the pace of world growth. The chart opposite shows forecasts for selected countries and regions, ranked by expected growth in 2013. Leading indicators of world economic growth strengthened in the March quarter and lend support to these forecasts. The Reserve Bank’s May forecasts see the Australian economy growing by 3 per cent in 2012/13, by 2-3 per cent next year, and by 2½-3½ per cent in 2014/15. These annual forecasts are unchanged from the previous quarter. Growth slowed to an annual rate of 2.4 per cent in the six months to March 2013, and we are forecasting growth of only 2.8 per cent this year. Our forecasts for 2013/14 and 2014/15 are within the RBA’s range of estimates and have not changed since the previous quarter. Preliminary estimates suggest that engineering construction activity fell by 2.5 per cent in the March quarter of 2013. Activity was down in all states except Queensland, where it rose by 6 per cent to be 22 per cent higher than a year earlier. The volume of work done fell by 7 per cent in New South Wales, by 6 per cent in Victoria, and by 1 per cent in Western Australia. For the first time since the December quarter of 2011, activity in Queensland exceeded activity in Western Australia. Work done also fell in all other segments of the industry: by 1 per cent in non-residential building, by 0.3 per cent in new housing, and by 4 per cent in housing renovations. Total construction activity in the March quarter fell by 2 per cent to about the same level as a year earlier.

Non-residential Building Preliminary estimates show that activity fell by 1 per cent in the March quarter of 2013 to a seasonally-adjusted annual rate of $33.1 billion: 4 per cent less than a year earlier. Forward indicators remained slightly negative in the December quarter. Work commenced in Australia in the year to December was 4 per cent less than work done, although at the end of December there was still eight months work in the pipeline. The indicators were very strong in the Northern Territory, positive in New South Wales, reasonably healthy in Victoria, but weak elsewhere. National approvals increased by 4 per cent in the March quarter to a seasonally-adjusted annual rate of $31.9 billion. As the chart opposite shows, the rise was driven by a 30 per cent increase in approvals of commercial buildings (mainly offices), as a result of which total private sector approvals increased by nearly 9 per cent. Public approvals fell by 9 per cent to an annual rate of $6.9 billion: 22 per cent of the total. The rise in private approvals was welcome. Nevertheless, total work approved in the year to March was still only $32 billion: 8 per cent less than work done in 2011/12 and less than forecast activity this year. Moreover, in the March quarter the trend in approvals â&#x20AC;&#x201C; nationally and in Victoria, Queensland and Western Australia â&#x20AC;&#x201C; was not up but down. Business confidence improved in the March quarter but the NABâ&#x20AC;&#x2122;s latest monthly survey saw it fall back to -2 in April. With business conditions still poor and the labour market showing new signs of weakness, we expect at least one more cut in interest rates in the months ahead. That will help private sector commencements. But with public spending continuing to decline, total activity is expected to fall this year and next, before steadying in 2014/15.

Non-residential Building Forecast: by State & Territory

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

NSW

VIC

QLD

TAS

ACT

Australia

2010/11 (a)

8,804

8,372

7,695

2,380

5,082

687

456

1,332

34,808

2011/12 (a)

7,590

8,622

7,390

2,238

6,235

510

706

1,280

34,660

2012/13

7,600

8,480

6,720

2,200

5,880

390

970

1,040

32,280

2013/14

8,100

8,200

6,600

1,800

5,600

450

800

32,350

2014/15

8,250

8,450

6,750

2,000

5,60

490

755

805

33,000

% change 2011/12

-14

-4

-2

-26

-4

2012/13

-2

-9

-5

-6

-24

-19

-4

2013/14

-3

-2

-18

-5

-18

-23

-3

2014/15

-2

-6

a = Actual

Economic

Forecast

June 2013

Engineering Construction Recent activity Measured in 2010/11 prices, the volume of work done fell by 2.5 per cent in the March quarter to an annual rate of $123.4 billion: only 1 per cent higher than in the same quarter a year ago. Forward indicators of activity continued to ease in the December quarter but were still strong. In the year to December, 23 per cent less work was begun than was done; but at the end of December there was still 12 months of work yet to be done. In Western Australia there was around 16 months work in the pipeline, in Queensland about 14 months. Commencements fell in the December quarter. Nationally, they declined to an annual rate of $75 billion; but in the year to December they totalled $97 billion: only 8 per cent less than in 2011. As the chart opposite shows, the year-to-date volume of commencements has fallen sharply in Queensland but remains steady in Victoria, South Australia and Western Australia, and has increased in New South Wales. In Western Australia, a massive upward revision of $16 billion to work commenced in the March quarter of 2012 has altered the outlook dramatically from that reported last quarter. The volume of work yet to be done fell by 9 per cent to $122.7 billion in the December quarter. Nearly two-thirds of this work ahead is on mining and heavy industry. Activity increased by a massive 35 per cent in 2011/12 to $116.3 billion. It is forecast to increase to a peak of $126 billion this year before falling by 5 per cent and 6 per cent in the following two years.

Engineering Construction Forecast: by State & Territory

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

NSW

VIC

QLD

TAS

ACT

Australia

2010/11 (a)

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

23,200

10,650

39,800

5,450

41,900

1,100

3,200

700

126,000

2013/14

21,590

10,220

36,500

4,490

42,670

1,040

2,275

120,000

2014/15

20,330

9,840

33,350

4,030

40,200

920

3,250

480

112,400

103

2012/13

-8

-11

2013/14

-7

-4

-8

-18

-5

-15

-5

2014/15

-6

-4

-9

-10

-6

-12

-37

-6

% change 2011/12

a = Actual

New Housing In the year to September 2012, Australiaâ&#x20AC;&#x2122;s population increased by 382,500. Natural increase of 154,500 was 4 per cent higher than in the previous year to September and net overseas immigration of 228,000 was up 32 per cent. Growth accelerated strongly in South Australia, Western Australia and the Northern Territory. In the chart opposite, ABS estimates of population, which currently overstate growth between 1998 and 2006 and understate it between 2007 and 2011, have been revised along lines the ABS proposes to adopt in revisions to be published in June. These revised estimates have been used to re-calculate the underlying requirement for new housing in Australia: now estimated to be around 170,000 in 2012/13. Dwelling approvals rose in the March quarter in Queensland, Western Australia and South Australia, but eased in New South Wales and fell sharply in Victoria. Nationally, the trend in approvals fell by 2 per cent to an annual rate of 156,000: 10 per cent up on a year earlier but still well short of requirements of around 170,000. Approvals of houses increased by 1 per cent to an annual rate of 93,000 and were 3 per cent higher than a year ago. Multi-unit approvals, which have been strong, fell by 6 per cent to an annual rate of 63,000. But they were 23 per cent higher than a year earlier. Consumer confidence fell in April and May but recovered some of the lost ground in June, when the index rose to 102.2. At that level it was 7 per cent higher than a year ago. The ABS recently revised new housing activity in 2011/12 upwards by more than $1 billion to $39.6 billion. Activity is forecast to increase modestly and unevenly this year and next: more strongly in 2014/15.

New Housing Forecast

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

NSW

VIC

QLD

TAS

ACT

Australia

2010/11 (a)

8,778

13,687

7,488

2,458

6,394

677

2011/12 (a)

8,547

13,638

7,178

2,222

5,541

578

373

1,230

41,085

561

1,345

39,610

2012/13

10,000

13,950

7,220

1,810

5,600

2013/14

9,950

13,000

7,950

2,150

6,600

485

600

1,235

40,900

570

530

1,000

41,750

2014/15

10,700

13,300

8,650

2,200

7,150

590

520

950

44,060

2011/12

-2.6

-0.4

-4.1

2012/13

17.0

2.3

0.6

-9.6

-13.3

-14.7

50.3

9.4

-3.6

-18.5

1.1

-16.1

7.0

-8.2

3.3

2013/14

-0.5

-6.8

10.1

2014/15

7.5

2.3

8.8

18.8

17.9

17.5

-11.7

-19.0

2.1

2.3

8.3

3.5

-1.9

-5.0

5.5

% change

a = Actual

Consulting Matters Protecting your business

Is the limit on your Professional Indemnity insurance policy enough? RUNNING A SUCCESSFUL BUSINESS REQUIRES MORE THAN THE SUM OF YOU AND YOUR COLLEAGUES’ PROFESSIONAL APTITUDE. SUCCESS REQUIRES SKILL BUT ALSO PRACTICAL AND CAREFUL BUSINESS MANAGEMENT – PARTICULARLY IN TIMES OF INDUSTRY DOWNTURN WHEN PRACTICES ARE MORE VULNERABLE TO ECONOMIC INSTABILITY.

In such an environment, the level of client expectation does not always correlate to a preparedness to similarly remunerate construction professionals. Pressure to streamline business practices and maintain profitability can often force an uneasy balance between client expectations and fee income, and that environment can lead to adversarial attitudes when ‘working through issues on site’, and as often a corollary, lead to claims. There are many things that can be done to minimise loss and interruption to professional practices but insurance is perhaps one of the most effective forms of risk management and/or risk transference. It represents an acknowledgement of a certain cause of risk and provides, at a cost, a level of protection against that risk. That is of course on the proviso that you have the right type and an adequate amount of cover.

WHO REQUIRES PROFESSIONAL INDEMNITY (PI) INSURANCE AND WHAT DOES IT COVER? We live in a litigious society. Rightly or wrongly, causes of action and duties of care are constantly evolving and expanding. In almost every case, it is preferable that any person or business has PI insurance if they are providing a specialist service, giving professional advice or providing particular expertise and skill to paying clients. In many cases legislation or entitlement to certain professional memberships makes such insurance mandatory. PI insurance policies come in various shapes and forms but all are designed to provide individuals and practices with support in circumstances where an allegation is made by a client or third party that an ‘insured’ has not met the standard of professional care expected of a practitioner in his/her relevant profession. Some policies have extensions or ‘additional benefits’ to this basic cover. Examples include (but are not limited to): the provision of insurance support when responding to registration boards or coronial inquiries, where allegations relate

to intellectual property; or to breaches of contract. It is important to remember that while cover under different policies may vary, all policies will be limited by a pre-determined and agreed ‘sum insured’ which will cap the amount of relief or ‘indemnity’ an insured person or practice will be entitled to. Any liability for a claim over that ‘sum insured’ will necessarily be an uninsured risk and will render the person or practice responsible for that portion of loss.

HOW MUCH COVER DO YOU NEED? There are a number of considerations which should be taken into account when determining how much cover you or your practice will require to be confident of adequate insurance protection. This is something that you should discuss with your broker or account manager for advice which is specific and relevant to your practice but as a starting point, practices should be mindful that many industries have minimum ‘sums insured’ required for professional association and membership. Think about the sort of work that you do and consult the agreements you are bound by. Are there minimum insurance requirements for any particular projects you are working on? The type of projects you are involved with may require special consideration when it comes to determining if you have adequate cover. For example, if you are working on a novel (and therefore higher risk) design, you may need to consider what exposure you may have if the design fundamentally fails and if the amount of cover you have elected to purchase will suffice. Also consider who will be relying on your advice and with whom you will be working on a project. Are your project colleagues and clients reputable or do they have a history of past conflict and litigation? As with many things in life, past experience can often indicate future behaviour and a serial claimant with a propensity for litigation can materially affect the capacity you may have to settle disputes quickly, commercially and within your sum insured.

Finally, you must consider your appetite for risk and what you are prepared to pay for your preferred insurance cover. Policy prices are affected by many factors, including for what monetary sum you are seeking to insure under your PI policy. You would do well to try to find a policy which suits your financial budget while providing the maximum amount of cover you are able to justify after considering all the risks.

AN EXAMPLE OF HOW QUICKLY AN INADEQUATE SUM INSURED CAN BE ERODED: Consider that you are a sole practitioner working on a high-end multi-million dollar luxury residence. It is your client’s dream home and they have a lot of time, money and emotional expectation invested in the project. You have $1,000,000 of PI insurance cover (which sounds a lot to you!). Perhaps the project is let down by poor workmanship issues which you may have had an opportunity to detect, but which cannot now be easily rectified by the party at fault, as the builder has disappeared – leaving the home with significant defects and a client looking for compensation. A claim is levelled against you for $2,000,000 by your client, who is an experienced litigant. It is an ambit claim but the rectification costs are still significant, say $800,000. The matter is litigated and defended. Experts, lawyers and barristers are engaged and the matter proceeds to a full hearing. The client obtains a judgment against you from a generous judge who allows $850,000 for the rectification of defects. An award for costs and interest is also made and the client alleges that they have incurred $400,000 in legal costs to bring the claim against you. All of a sudden you are faced with a debt of in excess of $1,250,000 with only $1,000,000 insurance cover. The balance over your sum insured will come from you and your practice, as once a claim is made it is too late to adjust your sum insured. There is no ‘top up’ insurance available. Of course the example above is a grim cautionary tale, but it is a telling example of

Protecting your business Consulting Matters

how important it is to properly consider your insurance needs and the awareness of the professional risks you may be confronted with in the running of your practice. It is imperative to regularly review your PI policy and satisfy yourself that you have the right level of cover comparable to your business practices and risk appetite. If you are in doubt, you are well advised to contact your broker or account manager to undertake a review of your professional needs. Kerrie McLeish Planned Professional Risk Services

Consult Australia member firm, Kehoe Myers Consulting Engineers share their experience using the PI Pathway

KEHOE MYERS SPECIALISES IN CIVIL, STRUCTURAL, HYDRAULIC AND INFRASTRUCTURE ENGINEERING AND PROVIDES CONSULTING ENGINEERING SERVICES TO CLIENTS THROUGHOUT AUSTRALIA. Kehoe Myers Consulting Engineers signed up with Planned Professional Risk Services (Planned) in June 2009. Their decision to sign with Planned came down to the broker’s excellent service offering and reasonable cost. The Consult Australia PI Pathway service provided a trusted referral which saw Kehoe Myers Consulting Engineers switch to Planned from a previous broker. When the firm signed up with Planned they noted that the sign-up process was exceptional – simple and easy to follow the steps and fill out the appropriate forms. Since signing with Planned, Kehoe Myers Consulting Engineers has made a claim with the insurance provider and noted that the claims process was ‘simply excellent’. The firm has had a number of projects insured including: civil engineering; structural engineering; hydraulic/fire engineering; plumbing engineering; town planning; project management; and drafting.

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.

The customer service Kehoe Myers Consulting Engineers has received to date means that they would definitely recommend the broker to other Consult Australia members. “We have been using Planned Professional Risk Services for the last four years and have found the switch to benefit our professional obligation. Planned Professional Risk Services has excellent customer service and they’re ready to answer any question and help deliver satisfactory solutions.” John Pikramenos Kehoe Myers Consulting Engineers

BRIC

Bovill Risk & Insurance Consultants

Consulting Matters Business essentials

Breaking down gender barriers ORGANISATIONS IN MALE DOMINATED FIELDS SUCH AS ENGINEERING, SCIENCES AND ARCHITECTURE ARE LOOKING TO CAPTURE A GREATER SHARE OF THE TALENT POOL THROUGH INITIATIVES DESIGNED TO APPEAL TO WOMEN.

not been positioned as a central business issue. It’s seen as an add-on, something on the periphery that the Human Resources department looks after. “Where Boards and CEO’s are taking the lead on gender, we see gender equality positioned as a strategic priority. These organisations are reaping the benefits of increased productivity and efficiency, higher morale and job satisfaction and reduced absenteeism and turnover. “There is no doubt in my mind that companies with good diversity records will have a competitive advantage in the marketplace, as they compete for talent, strive to retain that talent and look to improve their productivity,” Ms Conway said. While Australia has made significant progress towards gender equality in recent decades, women continue to earn less than men, are less likely to advance their careers as far as men, and are more likely to spend their final years in poverty. At the same time, men find it more difficult to access flexible working arrangements than women. An increasing number of organisations are seeking to remedy these gender inequalities as acceptance of the business case for gender diversity grows. Research suggests that organisations that respect and value the diversity brought by both women and men are better able to attract and retain high performers and improve operational performance. In short, gender equality makes good business sense. So why the slow pace of change? Director of The Workplace Gender Equality Agency, Helen Conway says, “Good intentions have not translated into actions and outcomes because gender equality has

Organisations seeking to improve their gender diversity can obtain assistance from the Workplace Gender Equality Agency (formerly the Equal Opportunity for Women in the Workplace Agency). As the Australian Government’s key agency for building gender equality in Australian workplaces, the Agency is resourced to help employers accelerate progress to gender equality. The Agency works collaboratively with employers by providing advice, innovative solutions, practical tools and education. The Agency is responsible for administering the new Workplace Gender Equality Act 2012 (Act). Under the Act, all non-public sector employers with 100 or more employees are required to report annually to the Agency on a range of gender equality indicators such as gender composition of the workforce, pay equity and flexible working arrangements. The Agency will analyse the data that it collects from employers to create industry specific educational benchmarks, allowing employers to measure their performance against their peers and track their performance over time.

Under the Act, all non-public sector employers with 100 or more employees are required to report annually to the Agency on a range of gender equality indicators such as gender composition of the workforce, pay equity and flexible working arrangements.

Ms Conway says, “The new Act will give us better data which will paint a picture of what gender equality looks like in Australia. It will enable us to provide employers with industry based benchmarks so we can talk to people and say, “This is what best practice looks like in your industry; this is what shouldn’t be done; this is where you are; and here are some strategies that work in your particular industry to improve your position.” Under the Act, relevant employers are required to report to the Agency between 1 April and 31 May, with the report referring to the immediate 12 month period prior to 1 April. This year is a transition year, with reduced reporting requirements for the 2012-13 reporting period allowing organisations to adapt to the new reporting regime. From the 2013-14 reporting period, the requirements under the Act will be fully operational with relevant employers required to report against a set of six gender equality indicators. More information on reporting can be found on the Workplace Gender Equality Agency’s website, at www.wgea.gov.au. If you are unsure of whether your organisation should be reporting, please phone the Agency on (02) 9432 7000 and ask to speak to a Senior Reporting Advisor.

Helen Conway Workplace Gender Equality Agency

Consulting Matters

Winter 2013

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.

Consulting Matters is available for non-members to purchase. Subscribe for 12 months (4 x issues) for only $66 by calling the Consult Australia National Office on (02) 9922 4711. Not a member firm? Join and begin accessing our member benefits today! Benefits include: • Practice performance and salary benchmarking • Business development tools such as practice notes and business tips • WHS checklist • Safety in Design Pocket Guide • Networking events • Discounted education & training courses • Fortnightly newsletters featuring important industry updates and news • Discounted tickets to Consult Australia’s annual Symposium and Awards for Excellence • FutureNet – young professionals networking program For more information on membership, contact Consult Australia’s National Relationship Manager, Uwe Gromen on (02) 9922 4711 or uwe@consultaustralia.com.au Consult Australia National Office T: (02) 9922 4711 F: (02) 9957 2484 E: info@consultaustralia.com.au W: www.consultaustralia.com.au

Consulting Matters Business essentials

Respected, but not feared In the autumn 2013 edition of Consulting Matters, the Consult Australia policy team made the argument for companies to build better government relations. In this issue, we explore the strengths and weaknesses inherent in the consulting sector for getting politicians and the public service to listen. The ‘problem’ with our industry, we were recently told by a senior ex-Minister, is that it’s not feared. It’s respected and trusted, but not feared. The point being that, for the purposes of influencing governments, fear is the best lobbying tool and we don’t engender that emotion. Fear is a tool used by industries and special interest groups that can threaten the Government of the day. The threat can be in the form of a drop in tax revenue, or public opinion among that all-important class of person—the swinging voter. Perhaps the best example in recent times is the resources sector response to the Rudd Government’s proposed Resources Super Profit Tax (RSPT). The industry was successful in whipping up public support for their point of view: that the RSPT would be bad for business, bad for the country and therefore bad for ordinary people. Anything that is bad for ordinary people or ‘working families’ is toxic to a government relying on popular support. The resources sector spent $22 million in two months on its campaign against the RSPT;i its leaders put themselves at the centre of the media and only stopped when Prime Minister Rudd resigned. There is debate over which straw broke the Government’s back in June 2010, but it appeared to many that coups d’état are differentiated only by the use of violence. Downfall of a government is rarely the desired outcome of an advocacy campaign, but the RSPT is a stunning example of how fear—fear of a tax that will slow the economy and cost jobs—influenced the government.

WORKING TO OUR STRENGTHS Consult Australia and its members are not known for such drama. Ours is an industry that prides itself on carefully considered advice. It’s what we provide to clients, and it gives credibility and gravitas to our messages.

The ‘problem’ with our industry, we were recently told by a senior ex-Minister, is that it’s not feared. It’s respected and trusted, but not feared.

Tenacity (or stubbornness) is the tool we employ best. It’s what Consult Australia used to bring about the 2013 introduction of the subclass 400 visa, which allows employers to bring specialised staff into the country for six weeks’ work at almost no notice. Persistent lobbying, like a mosquito on a summer’s night, was required to reform the system to allow engineering graduates from the best schools around the world to enter and work in Australia with fewer restrictions than any other profession. Persistence was an asset when advocating for the Victorian Labor opposition to adopt a model for Infrastructure Victoria to provide independent, transparent, and expert advice to government on infrastructure priorities and planning. Ultimately, this will provide greater certainty for firms planning their business around an infrastructure pipeline that extends across political cycles. This initiative has then been repeated in South Australia, with the state Coalition opposition committing to a similar framework. Sometimes however, patience can wear thin. Sometimes, a call to the Minister’s office and the threat of media action may be the final push needed to get noticed; as it was with the South Australian government’s tardy response to calls for urgent reform of the training system for the drafters we all rely on. With a press of the right button, we are back on track and the future of engineering associate qualifications appears safe.

MAKE SOME NOISE In 2012, the federal Government wanted to reform Living Away From Home Allowances (LAFHA), which created angst for many of the industry’s valuable 457 visa holders – who made plenty of noise. As an industry, these concerns fell on what seemed like deaf ears – until we too made some noise. As highlighted above, the resources sector is great at applying pressure; so we formed

a coalition with them. Together, we were successful in delaying the LAFHA reforms by a few months, saving, especially for the larger employers, hundreds of thousands of dollars along the way. The point is that status as a trusted provider of considered advice is less effective, and brings slower results, if only a few people hear that advice. Consult Australia is welcome in Canberra and can reach the decision-makers we need, but there’s nothing like hearing the same message from a range of people from within the industry. Consult Australia policy advisors are lobbyists and mouthpieces for the industry. The messages we take to Canberra politicians are powerful, and they can be even more effective when members also speak up; in a letter, at a meeting or, most preferably, via the media.

WHAT’S NEXT? There is always another challenge. Fighting for fairer contracts, especially with respect to proportionate liability, is a big one. Cajoling governments and opposition parties to commit to a long-term approach to public infrastructure development is another. The NBN is the first ‘nation building’ project since the snowy-hydro scheme that took a generation to complete. If there is ever going to be a second Sydney airport or a very fast rail system, the careful considered advice of the experts needs a voice. Consult Australia is here to help the industry find that voice, and work with our member firms to make it heard.

Jonathan Russell Consult Australia

Mark Davis, A snip at $22m to get rid of PM, SMH online, 2 February 2011.

Business essentials Consulting Matters

Mental health and WHS A 2007 survey found that around 7.3 million, or 45 per cent of Australians aged 16-85 will experience a common mental health illness such as depression, anxiety or substance use disorder in their lifetime1. Another survey conducted in 2010 estimated that almost 64,000 people in Australia are in contact with specialised mental health services each year to address psychotic illness2, while more than $6 billion is spent on mental health services each year in Australia.

It follows therefore that mental health is emerging as an important issue facing employers from a range of perspectives.

These statistics reflect an increasing acceptance of mental health issues as of equal importance than some of the more traditional health concerns. In recent years there has been a growing understanding of mental health issues, coupled with the de-stigmatisation of those suffering mental illness, and the conditions they are dealing with. It follows therefore, that mental health is emerging as an important issue facing employers from a range of perspectives. Where previously this was predominantly seen as a human resources issue, it is also now important from a Workplace Health and Safety (WHS) angle. Workers suffering depression, anxiety or another condition need to be identified and assisted in a meaningful and sensitive way. Colleagues may require assistance in pointing a co-worker to the appropriate source of help, and when an employee takes time off work to address their condition, their return to work needs to be properly attended to. In addition, extra sensitivity or specialised assistance may be required, depending on the worker’s age, gender, religious or cultural background, sexuality, socio-economic background, or in the case of new or expecting parents. To assist our members in addressing these issues, Consult Australia has recently joined a coalition of business groups under the Australian Chamber of Commerce and Industry’s (ACCI) banner, in partnering with Beyond Blue. Beyond Blue was established in 2000 with the initial aim of better understanding and de-stigmatising depression so that it can be properly addressed. Since then, they have grown into one of Australia’s leading mental health policy organisations, developing a range of programs to assist people suffering mental illness, as well as their families, friends and workplaces. This partnership represents an important opportunity to roll out Beyond Blue’s expertise into the

workplace, while also providing feedback from employers as to the effectiveness of the resources. In forging this partnership, it is also important that the burden placed upon businesses in addressing these and other health issues facing employees is understood, so that the policies developed best assist all parties To this end, an important element of the partnership will be the feedback from our members as to the implementation of policies and programs to help members of their staff. The partnership was launched in April of this year at an event in Melbourne and representatives of Beyond Blue will be addressing an upcoming meeting of the Workplace Health and Safety Roundtable to discuss their initiatives. Consult Australia looks forward to sharing these resources with our members, and to taking another step towards achieving a healthier, safer workforce in our industry.

Robin Schuck Consult Australia

N ational Survey of Mental Health and Wellbeing, conducted by the Australian Institute of Health and Welfare, 2007. Accessible at http://mhsa.aihw.gov. au/home.

N ational Survey of Psychosis, conducted in 2010. Accessible at the same website.

Consulting Matters Corporate Social Responsibility

Building bridges with

Africa

This April, BG&E completed a pro bono project in a remote Tanzanian village which involved the design, funding, project management and construction supervision of three bridges and a large culvert structure. The original timber bridges had been destroyed by severe flooding and cut off critical links for trade and access to education and healthcare for the local population of 5,000-10,000 people. Local villages were unable to effectively sell their produce, schools could not access resources and obtaining medical care required two hours of walking to reach the new bus route for the two hour journey to the nearest town’s dispensary. Top from left: No Cranes! Lowering precast culverts in Mambo Village Centre Photo taken by Herman Erdtsieck. One of the Bridges Prior to Reconstruction Photo taken by Benny Man. Opposite page: BG&E Engineers Garrett Bray and Tim McMinn working with the team to fix formwork and placing reinforcement. Photo taken by Herman Erdtsieck.

The request for assistance came from MamboViewPoint, an eco lodge in the Usambara Mountains, where a BG&E draughtsman Antony Rieck had stayed in 2011 with his family. Antony forwarded the community’s request for a bridge design that could enable the passage of buses and trucks while resisting the frequent flood loading from heavy rainfall.

In early 2012, BG&E engineers provided reinforced concrete design solutions that carefully considered the use of appropriate technology to suit the local conditions of limited materials, equipment and skilled labour. In late 2012 it became apparent that the community was unable to fund the construction of the bridge. BG&E made the decision to provide the funds through the firm’s CSR program on the basis that the project would leave a lasting legacy of knowledge and capabilities in addition to the physical structures. Engineers Garrett Bray, Tim McMinn and Benny Man began the challenge of preparing for an intense project construction period over five weeks in March and April 2013. The three engineers were joined by Antony Rieck and BG&E Director, Peter de Bruin who oversaw the successful completion of all four structures. On site, the team experienced a variety of challenges adapting to local conditions, which included dealing with rudimentary construction equipment and low-tech building

Consulting Matters

Consulting Matters Corporate Social Responsibility

materials, managing a large group of local tradesmen, and setbacks due to heavy rains. The initial design, which relied on capacity of timber stringers had to be altered when it proved impossible to source adequate materials and primary capacity instead relied on the reinforced concrete deck, requiring careful monitoring of concrete quality which was mixed by hand on the ground. In the end, the team was satisfied that the community now stands to benefit not only from the restoration of critical transport infrastructure but also from the skill transfer to the local workforce which is directly applicable to future projects. BG&E’s corporate citizenship program was launched in early 2012. The aim of this program is to employ the company’s specialist technical skills and knowledge in ways that create positive change and opportunity for communities experiencing poverty, disadvantage, and poor public health, and to benefit organisations promoting culture and the arts. For more information on BG&E’s Corporate Social Responsibility Program please contact csr@bgeeng.com BG&E Director, Peter de Bruin and Mambo Village elder shake hands prior to project commencement Photo taken by Athony Rieck.

Garrett Bray BG&E

Engineering a play space like no other As a professional services firm, it’s important to recognise that the value of good business goes well beyond the bottom line. Owned and managed by engineers who work in the industry, Northrop understands the significant role our firm can play in developing the community and we thrive on opportunities to make a difference. Our involvement in the development of Luke’s Place – a safe haven for children with disabilities – has seen us providing accessibility advice from BCA Certifiers consultants in relation to the parent’s room upgrade. We were also responsible for providing hydraulic engineering advice for water play and fountain construction. Luke’s Place is the first inclusive play space in the Illawarra. It has a carousel which can be used by children with mobility challenges, colour-coded, textured sections for those who are visually impaired, and areas where noise and vibration is used for those with hearing impediments. There are many parents who aren’t able to visit the local park with their children who may have disabilities which require a contained area or quiet zones to play in. Luke’s Place provides a suitable site for these children to play in safety, something which is essential to their development and wellbeing. It also serves to meet important social needs for parents.

The playground is a lasting, visible symbol of our organisation’s commitment to corporate responsibility and importantly, is one that can be enjoyed by all members of the community.

As part of the commitment to this project, Northrop will also be responsible for the redesign of a parent’s room for the play space in close collaboration with their clients. The playground is a lasting, visible symbol of our organisation’s commitment to corporate responsibility and importantly, is one that can be enjoyed by all members of the community. It’s a privilege to be involved in such an important project and we consider it a crucial part of our role as engineers – to build a safer, better future for all members of the community. Sean Rapley Northrop Engineers

Consulting Matters

SELECTED TRAINED DEPLOYED for short-term paid international emergency work Mel Schmidt, natural disaster relief effort, Pakistan 2012

Do you have what it takes? Visit www.redr.org.au infrastructure repair and replacement + shelter + water and sanitation + site planning + logistics

Art Deco meets modern â&#x20AC;&#x201C; preserving the historic exterior was a priority Photo courtesy of NDY

Cathedral of commerce

Emporium Melbourne THE WORD ‘EMPORIUM’ DERIVES FROM THE GREEK EMPORION, WHICH ITSELF DERIVED FROM THE ANCIENT POROS, MEANING ‘A JOURNEY’.

Shopping at an emporium should be a journey, perhaps of discovery. The excitement of being somewhere so large and ostentatious that there are always unexplored corners, no matter how well-travelled the path of previous transaction should be part of the experience. For those involved, the new Emporium project in Melbourne has been a personal journey with the aim of delivering Melbourne’s most significant CBD retail centre in 20 years. The size of a city block, the Emporium covers the site of the old Myer store in Lonsdale Street. By late 2013, behind the expertly propped 1926 heritage façade, there will be 225 retail stores spread over 46,000 square metres. The retail mix will be international flagship brands, luxury stores, Australian designers and a premium café court with seating for more than a thousand diners. Norman Disney & Young Project Director, Ben White was initially a bit daunted by the challenge. “It took us a while to get our heads around the scale of the project,” said Ben. “But eventually we realised that the layout – which is essentially that of a conventional regional suburban shopping centre compressed on to a city block – offered a number of efficiencies. It is much easier, more economical and more energy efficient to service a stack than a sprawl.” The 2009 planning approval included mixed use elements on the upper levels (including offices) but these were trimmed back as the current project developed and became more focussed. By mid 2010 it had evolved into the current form, with an eye-popping corner façade facing Lonsdale Street and a media screen, which appears to have crystallised from the original Myer Emporium façade. This is the first time such technology has been utilised in the southern hemisphere. The project boasts energy efficient design adopting the latest technology swing. Only parts of the malls are conditioned, the rest passively cooled with variable controls methodologies utilised. The mall lighting makes extensive use of LED technology and opportunities exists for numerous interactive media screens throughout the centre to enliven the customer experience. The operational functions of the centre have been extensively automated; the Emporium is designed to be operated with minimal staff and from one central location. One example of this is the bespoke loading dock management system, which allows the Emporium to

share a common loading dock with adjoining sites – an example of technology tying together a retail precinct. Given the likely market caché of the tenants, great effort has been expended to ensure current and future servicing needs can be met. For example, every tenant can gain access to three phase power, the mechanical systems have been designed for high demand strips (such as jewellers) and the centre’s ICT backbone will allow virtually any technology to be piggy-backed. The fire engineering solutions are, as Ben White describes them, “Pretty out there.” Asked to explain, he said, “All smoke management systems throughout the project have fire engineered solutions. Whilst a stack is efficient, it is also riskier than a suburban shopping centre, and those risks all had to be addressed and engineered appropriately. As a result, we have been able to minimise escape corridors, thereby increasing rental space, which has at the same time allowed for more openness in the malls and longer vistas. All fire engineering solutions are totally integrated with the architecture and are as close to invisible as we could make them.” The first section of the original Lonsdale St store extending from Post Office Place opened in 1926, and an extension to the east was added in 1929. A Sydney newspaper described the union of the Myer and Myer Emporium buildings in 1934 as a ‘cathedral of commerce’. The site is owned by CFS Retail Property Trust Group (managed by Colonial First State Global Asset Management) and the Government of Singapore Investment Corporation Pte Ltd (GIC). Colonial First State Global Asset Management brought their extensive retail and mercantile nous to the project. Emporium is being constructed by Grocon, who have exhibited their customary innovation in construction with the retention of the Lonsdale Street façade. The architect is the Buchan Group, working in collaboration with international designers Wonderwall from Japan (for the mall interior design) with input on the food court design from Rockwell in New York and local designers Russell & George. Emporium Melbourne is due for completion in November 2013. Genuflecting upon entry is optional. Steve Brown NDYLIGHT

Consulting Matters

The Sustainable Industries Education Centre Image courtesy of WSP Buildings

Consulting Matters

The Sustainable Industries Education Centre (SIEC) THE SUSTAINABLE INDUSTRIES EDUCATION CENTRE (SIEC) IS A UNIQUE NEW 30,000 SQUARE METRE FACILITY HOUSED WITHIN AN EXISTING BUILDING LOCATED IN TONSLEY, SOUTH OF ADELAIDE CBD. THE FACILITY COMBINES VOCATIONAL TRADES FROM A RANGE OF EXISTING TAFE CAMPUS’ INTO A SINGLE SITE TO REDUCE EMISSIONS AND WASTE, MINIMISE OPERATIONAL AND RECURRENT COSTS AND DELIVER LOGISTICAL BENEFITS.

This project is part of the Department of Further Education, Employment, Science and Technology’s (DFEEST) wider strategy to reduce their ecological footprint and impact on the environment. Via the application of sustainable technologies and practices, the SIEC facility is expected to exceed the targets set by DFEEST. The facility itself provides a combination of office and administrative space served by an innovative combination of passive, active and multi-service chilled beams; teaching space served by flexible and modular high efficiency Variable Air Volume (VAV) systems and naturally ventilated workshops where activities such as painting and decorating, plastering, floor finishing and milling will be carried out. The engineering services incorporate low energy Heating, Ventilation and Air Conditioning (HVAC) solutions with high efficiency thermal plant, free cooling via the cooling towers, Building Management System (BMS) staging for optimised energy consumption and enhanced economy cycle functionality through the use of a higher supply air temperature to conditioned spaces. Informal meeting areas where students are expected to congregate are tempered in both winter and summer via in-slab heating/cooling systems.

Consulting Matters

The SIEC facility will be responsible for training the next generation of South Australian tradesmen and tradeswomen in the construction industry The workshops are naturally ventilated via a combination of low-level façade and high-level sawtooth louvres. The use of High Volume Low Speed (HVLS) fans promote air circulation and the stack effect whilst improving thermal comfort by minimising perceived peak internal temperatures in the summer months with minimal energy cost. The low speed terminal velocity of the air ensures that disturbance of workshop dust is minimal and therefore assists in the effectiveness of the extraction systems. Workshop heating via gas radiant tube heaters is only permitted to be activated when internal temperatures are both below 14°C and below ambient, therefore preventing wasteful use of heating systems when they are not required. Daylight harvesting in the workshops, the main circulation paths and adjacent to the building entrance, staircases and lifts ensures optimisation of natural daylight whilst simultaneously reducing energy consumption via artificial lighting, which itself utilises high frequency ballasts and low energy track systems. Approximately 23,000 square metres of roof area is utilised for rainwater harvesting and is collected in a 700kL tank stored in the basement where it is filtered and treated before being pumped back into the facility to serve water closets, urinals, irrigation, cooling towers and shower towers. An estimated 85 per cent of the demand of the facility will be served by rainwater and a 54 per cent reduction in stormwater is anticipated, water that would otherwise have gone to watercourses. The cost saving is estimated at $14,000 per annum.

The SIEC facility will be responsible for training the next generation of South Australian tradesmen and tradeswomen in the construction industry and therefore the provision of a diverse range of engineering systems to expose students to both existing good practice and emerging technologies has been a core theme throughout the design and construction processes. The term ‘demonstrator’ has been extensively used on the project where the design team have taken the opportunity to showcase various elements of the building such as by access to plantrooms, Perspex covers to switchboards, fully exposed and labelled services and potential BMS interactive capabilities where students and staff have the ability to examine real time data on the building’s performance; energy use and water consumption. This is a unique and innovative project where the architectural rhythm is expressed by the engineering services.

Richard Gardner WSP Group

The Sustainable Industries Education Centre Image courtesy of WSP Buildings

Consulting Matters

Urban Reform Project www.thewarrencentre.org.au

Connectivity Successful cities effectively connect people, jobs, goods and services.

The Warren Centre for Advanced Engineering developed the Urban Reform Project to identify the key drivers in delivering successful infrastructure outcomes. Through an industry-wide consultative process, the key drivers were identified as governance, vision and policy, strategic planning and implementation. These principles are being examined through a series of case studies to identify best practice strategies in delivering successful infrastructure outcomes. The first of these case studies on CONNECTIVITY, has involved studying projects, including the M7, Regional Rail Victoria, Road and Rail in SEQ, High Speed Rail and The Second Sydney Airport. Each project was benchmarked using an evidenced based approach and senior contacts within each project to identify how it performed against the four key pillars of governance, vision and policy, strategic planning and implementation. The Connectivity study demonstrated clearly the critical nature of the four key pillars as best practice requirements to delivering successful infrastructure outcomes.

Lessons from the connectivity case studies: • All projects require extensive inter-government and inter-agency cooperation and strong political leadership. Successful projects show strong and highly visible government leadership assisted by a professional and independent public service, free from short term political interference. Both the M7 and the SEQ case studies demonstrate the importance and effectiveness of strong leadership & inter-governmental cooperation. • A long term vision and commitment, focussed on outcomes not outputs, is essential. The project’s objectives must be clearly understood and articulated. A clearly communicated shared vision for the future, supported by strong and independent advice in policy formulation is essential. Vision and policy need to address change over the life of the project with bipartisan support. Unclear objectives and lack of vision have impeded both the High Speed Rail and Greater Sydney Airport projects. • The project must be part of a strategic plan which incorporates land use and community requirements, and recognises their importance in shaping sustainable communities and the economy. Integrated planning, effective funding frameworks, detailed project briefs and alignment with project deliverables, quality data and special skills are essential. But strategic planning should be responsive to changes in demand, context, technology and standards over the life of the project. Regional Rail, M7 and SEQ all have a strong strategic planning base and have had a significant impact on the future. • Continuous and extensive community and stakeholder consultation is required as well as the flexibility to modify the project in response to submissions. Successful projects are characterised by genuine consultation which incorporates appropriate information to ensure informed debate, as demonstrated by the M7. • Most major projects are long term and multi-jurisdictional, so the policy and regulatory framework needs to be established at an early stage and be able to adjust to changing circumstances. SEQ has shown the benefits of establishing long term plans which provide for regular reviews and updates. The Greater Sydney Airport and High Speed Rail have both suffered from the absence of an adequate policy and regulatory framework. • Alternative procurement processes should be widely considered and, once decided, be adaptable.

www.thewarrencentre.org.au

The M7, SEQ and Regional Rail all have used a variety of procurement and funding mechanisms. Whilst the SEQ debt funding was criticised, its use has created economic wealth and delivered economic infrastructure which will benefit future generations, replacing the legacy that our current generation has enjoyed.

“Australia will need to pull every lever – new funding mechanisms, new technology, and new delivery mechanisms – to get anywhere near reaching its future infrastructure targets...” ~ CEDA 20 JULY 2010

STALLED STALLED

GREATER GREATER SYDNEY SYDNEY AIRPORT AIRPORT WHAT WHAT WE WE NEED NEED Matters 72 Consulting URBAN REFORM PROJECT: CONNECTIVITY CASE STUDY FAIL FAIL GOVERNANCE GOVERNANCE •• Strong Strong and and visible visible leadership leadership •• Robust Robust local local government government •WHAT •AAstrong strong Public Service Service WE Public NEED

GOVERNANCE • Strong and visible leadership • Robust local government • A strong Public Service

VISION VISION AND AND POLICY POLICY ••AAshared shared vision vision for for the the future future •• Strong Strong and and independent independent advice advice in in policy policyAND formulation formulation VISION POLICY •• Empowered Empowered delivery delivery of of the the vision vision • A shared vision for the future

• Strong and independent advice in policy formulation • Empowered delivery of the vision

Lack Lack of of agreement agreement and and coordination coordination continues continues to to undermine undermine the the project. project. STALLED

STALLED STALLED

HIGH HIGH SPEED SPEED RAIL RAIL FAIL FAIL Australia's Australia's HSR HSR initiatives initiatives have have lacked lacked the the strong strong national national sponsorship sponsorship & & bi-partisan bi-partisan STALLED leadership leadership that that has has been been at at the the fore fore on on successful successful infrastructure infrastructure projects. HIGH SPEEDprojects. RAIL

Responding Responding to to the the recent recent joint joint study study on on aviation aviation capacity capacity the the Commonwealth Commonwealth and and GREATER SYDNEY AIRPORT State State Governments Governments reaffirmed reaffirmed their their opposition opposition Federal Federal && State State engagement engagement has has to to Badgery's Badgery's Creek, Creek, notwithstanding notwithstanding that that itit FAILbeen been sporadic sporadic and and there there has has been been FAIL was was clearly clearly recommended recommended inin the the report report and and an an overwhelming overwhelming lack lack of of commitment commitment HSR initiativesincluding have lackedunrealistic the strong national Lack of agreement and coordination continues to undermine that that the the report's report's steering steering committee committee included included Australia’s to to the the project, project, including unrealistic & bi-partisan thatsector has been at the fore the project.the the Heads Heads of of the the Governments’ Governments’transport transport and and sponsorship expectations expectations as asleadership to to private private sector on successful infrastructure projects. infrastructure departments. departments. participation. participation. Respondinginfrastructure to the recent joint study on aviation capacity the Commonwealth and State Governments reaffirmed their Federal & State engagement has been sporadic and opposition to Badgery’s Creek, notwithstanding that it was there has been an overwhelming lack of commitment clearly recommended in the report and that the report’s to the project, including unrealistic expectations as to steering committee included the Heads of the Governments’ private sector participation. transport and infrastructure departments. FAIL FAIL FAIL FAIL HSR projects projects are are highly highly transformational transformational inin There Thereisisno noshared sharedvision. vision.The Thetwo twogovernments governments HSR nature nature and and must must be be founded founded on on aa broader broader vision vision are areat atloggerheads, loggerheads,with withthe theCommonwealth Commonwealth that conveys conveys aa credible credible longer longer term term picture picture of of supporting supportingaasecond secondmajor majorairport airportininthe theSydney Sydney that FAIL FAILpopulation population settlement settlement priorities priorities and and the the role role of of Basin Basinat atWilton Wiltonand andthe theNSW NSWGovernment Government HSR to toare that that end. end. opposing aasecond second airportininthe the Sydney Basin. Basin.HSR HSR There is noopposing shared vision. The twoairport governments areSydney at projects highly transformational in nature and must

loggerheads, with thegovernments Commonwealth supporting a second with on a broader must vision that a credible longer HSR HSRevaluation evaluation must“rise “riseconveys above” above” more morenarrowly narrowly The The two two governments have havedisagreed disagreed with be founded major airport inmost the Sydney Basin at Wilton and the NSW the term defined picture of“value population priorities and the role of defined “value for forsettlement money”, money”, “whole “whole of of life”, life”, the the most recent recent Independent Independent Study, Study, thelatest latest Government a second airport the Sydney Basin. and todiscounted that end. cost cost benefit benefit analysis analysis etc. etc. in inopposing aa50 50year year history history of ofin studies, studies, debate debate and HSR discounted indecision. indecision. As As local local studies studies have have shown, shown, benefits benefits of of HSR HSR The two governments have disagreed with the most HSR evaluation must “rise above” more narrowly defined recent Independent Study, the latest in a 50 report year history forprimarily money”, “whole of life”, discounted cost benefit are are primarily strategic strategic (social, (social, regional regional && macromacroThe Therecent recent Infrastructure Infrastructure NSW NSW report supports supports “value of studies,the debate and indecision. etc. economic) economic) and and not not readily readily quantifiable quantifiable inin the the the retention retention of ofland landalready alreadyacquired acquiredfor forthe the analysis above above terms. terms. Badgery's Badgery's Creek Creek site. site. The recent Infrastructure NSW report supports the retention of As local studies have shown, benefits of HSR are primarily land already acquired for the Badgery’s Creek site.

strategic (social, regional & macroeconomic) and not readily quantifiable in the above terms. FAIL FAIL FAIL FAIL STRATEGIC STRATEGIC PLANNING PLANNING HSR HSR planning planning must must be be technically technically rigorous, rigorous, The The March March 2012 2012 study study has has clearly clearly identified identified •STRATEGIC • Integrated IntegratedPLANNING planning planning FAIL highly developed developed (based (based on on route route specific specific EIS) EIS) aa long long term term need need for for aa second second Sydney Sydney airport. airport.FAILhighly •• Effective Effective funding funding frameworks frameworks and well-reasoned well-reasoned to to “win” “win” the the requisite requisite support. support. The MarchItIt 2012 clearly HSR and planning must be technically rigorous, highly developed will willstudy be be aahas key key land landidentified use use driver driver inin the the • Integrated planning •• Detailed Detailed project project briefs briefs (based on route specific EIS) and well-reasoned “win” the Lack Lack of of integration integration with with regional regionaltoplans plans in in metropolitan / / regional regional context. context. a long termmetropolitan need for a second Sydney airport. • Effective funding frameworks requisite support. Canberra Melbourne, Melbourne, Canberra and and Sydney Sydney is is a a major major •• Quality Quality data data Its planning planning must must acknowledge acknowledge and and be be It will be aIts key land use driver in the metropolitan / regional • Detailed project briefs failure, and and opportunities opportunities for forin the the project project to to Lackfailure, of integration with regional plans Melbourne, compatible with with the the strategic strategic planning planning •• Early Early engagement engagement of of expertise expertise && skills skills context. compatible be be aaand catalyst catalyst for regional growth growth have not not Sydneyfor is aregional major failure, and have • Quality data direction direction for for the the metropolitan metropolitan region, region, but but Canberra Its planning must acknowledge and be compatible with been been realised. realised. for the project to be a catalyst for regional also also will will itself itself ultimately ultimately shape shape land land use use opportunities • Early engagement of expertise & skills the strategic planning direction for the metropolitan growth haveto not beenhave realised. Efforts Efforts to date date have overlooked overlooked second second and and infrastructure. infrastructure. region, but also will itself ultimately shape land use and Sydney Sydney Airport Airport integration, integration, have have not not produced produced Efforts to date have overlooked second Sydney Airport AAsecond second Sydney Sydney airport airport has has not not been been infrastructure. credible credible demand forecasts forecasts and have have been beenand integration, havedemand not produced credibleand demand forecasts considered considered inin the the NSW NSW Government Government 2012 2012 unrealistic as asas to toto the the level of ofgovernment government government A second Sydney airport has not beenMaster considered in the NSW haveunrealistic been unrealistic thelevel level of financial Long Long Term Term Transport Transport Master Plan. Plan. Government 2012 Long Term Transport Master Plan. financial financial support required. required. support required.support FAIL FAIL FAIL FAIL IMPLEMENTATION IMPLEMENTATION AT AT REGIONAL, REGIONAL, In In the the absence absence of of aa National NationalTransport Transport Plan, Plan, In In 1995 1995 work work commenced commenced on on securing securing the the PRECINCT PRECINCT AND AND PROJECT PROJECT SCALES SCALES FAIL FAIL IMPLEMENTATION AT REGIONAL, the the lack lack of of aa broader broader HSR HSR mandate mandate has has meant meant Badgery's Badgery's Creek Creek site site following following aa $600 $600 million million AND PROJECT •PRECINCT • Empowerment Empowerment to to deliver deliverSCALES In 1995 work commenced on securing the Badgery’s Creek planning site In theproject absenceleadership of a Nationalhas Transport the lack of project leadership has been beenPlan, powerless powerless &&aweak. weak. budget budget allocation allocation for for land land acquisition, acquisition, planning

following aand $600construction. million budget allocation for land acquisition, broader HSR mandate has meant project leadership has been ••• Coordinated Coordinatedtoand and integrated integrated management management and construction. Empowerment deliver There There has been been no no “champion “champion of of influence” influence” planning and construction. powerless & has weak. ••• Project Project certainty certainty with withmanagement realistic realistic to to galvanise galvanise opinion opinion and and to to keep keep shorter shorter Over Over the the next next decade decade the the Howard, Howard, Rudd, Rudd, Coordinated and integrated Over the next decade Howard, Rudd, NSW and There has political been no “champion of distractions influence” to galvanise long long term term funding funding term term political / / sectorial sectorial distractions at at bay. bay. NSW NSW and andthe Local Local Governments Governments all allLocal progressively progressively • Project certainty with realistic long term Governments all progressively rejected Badgery’s Creek. opinion and to keep shorter term political / sectorial rejected rejected Badgery's Badgery's Creek. Creek. ••Appropriate Appropriate project project assessment assessment and and Funding Funding has has never never been been realistically realistically addressed. addressed. funding distractions at bay. For the airport to proceed it to must be accepted as abe approvals approvals process process As As aa result, result, the the project project suffers suffers from from aa high high level level For For the the airport airport to proceed proceed itit must must be • Appropriate project assessment and national project and be implemented through a single Funding has never been realistically addressed. of of public public && business business scepticism. scepticism. accepted accepted as as aa national national project project and and be be •• Measurement Measurement of of the the implementation implementation approvals process authority implemented managed jointlythrough by Federal, andauthority Local implemented through aaState single single authority As a result, the project suffers from a high level of public & against against the the vision vision and and the the plan plan Governments. managed managed jointly jointly by by Federal, Federal, State State and and • Measurement of the implementation business scepticism. Local Local Governments. Governments. against the vision and the plan

Sydney Area Area Sydney Trans. Trans. Study Study

Sydney Sydney Region Region Outline Outline Plan Plan

Corridor Corridor Planning Planning

Initial Initial Study Study

WWII ends ends WWII

Project Project Timelines Timelines

SEQ SEQROAD ROAD&&RAIL RAIL VIC VICREGIONAL REGIONALRAIL RAIL SYDNEY SYDNEYM7 M7 HIGH HIGHSPEED SPEEDRAIL RAIL SECOND SECONDSYDNEY SYDNEYAIRPORT AIRPORT

1940 1940

1950 1950

1960 1960

1970 1970

BUILT

IN PROGRESS

SYDNEY M7 WESTLINK

VICTORIAN REGIONAL RAIL LINK

SOUTH EAST QLD ROAD & RAIL

DISTINCTION Strong leadership from the State Government with Federal Government support has led to the IN PROGRESS project being conceived and implemented over a very short period of four years.RAIL LINK VICTORIAN REGIONAL

DISTINCTION In response to ongoing strong population growth in South East Queensland, the State IN PROGESS Government along with the support of Local Governments, a regional SOUTHprepared EAST QLD ROAD & framework RAIL for growth management culminating in the 2005 SEQ Regional Plan and the supporting DISTINCTION South East Queensland Infrastructure Plan and Program In response to (SEQIPP). ongoing strong population growth in South East Queensland, theaState Importantly, there has been longGovernment term along with the of with Local$22.2 Governments, commitment to support delivery billion in prepareddelivered a regionalorframework for growth since projects under construction culminating in the 2005 SEQ Regional it management was first launched. Plan and the supporting South East Queensland Infrastructure Plan and Program (SEQIPP).

1980

Counterbalancing this are the criticisms from the local affected communities and some interest groups. DISTINCTION The project was included in the 2008 Victorian Transport Plan and formed part of a wider strategy that delivered a transport vision for DISTINCTION the long term. Federal funding of $3.4 billion May 2009 The project was included in the 2008inVictorian Transport was success getting Planthe andkey formed part of afactor wider in strategy thatthe delivered a project going. transport vision for the long term. Despite increased costs and Federalsignificantly funding of $3.4 billion in May 2009 wasanthe key extended construction programme, success factor in getting the project going.the project survived a change in State Government in 2010 Despite significantly increased costs andofanthe extended and continues to have the support new construction programme, the project survived a change State Government. in State Government in 2010 and continues to have the support of the new State Government. PASS As a project ready to proceed that formed part ofPASS a clear strategy, it became a reality at the time Federal wanted As athe project ready toGovernment proceed that formed parttoof a clear stimulate economy Global strategy, itthe became a realityfollowing at the timethe the Federal Financial Crisis. Government wanted to stimulate the economy following Global Financial Crisis. Atthe commencement in Aug 2009, this was somewhat ill-defined still to At commencement in Augand 2009, thisneeded was somewhat address number of important ill-definedaand still needed to address community a number of concerns, technicalconcerns, challenges andchallenges and important community technical regulatory hurdles. regulatory hurdles. In addressing these, the project's original In addressing these, the project’s original budget and budget and construction programme had construction programme had to change. to change.

DISTINCTION Notwithstanding DISTINCTION some local community and political opposition, the project has continued somethe local community andVictorian political toNotwithstanding progress under control of the opposition, theofproject has continued progress under Department Transport with alltoconstruction the controlnow of thelet. Victorian Department of Transport with contracts all construction contracts now let. The necessary environmental and The necessaryapprovals environmental andbeen construction construction have approvals have beenstrong forthcoming withfrom strong forthcoming with support support State and Federal Governments. the Statefrom andthe Federal Governments.

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Importantly, there has been a long term commitment to DISTINCTION delivery with $22.2 billion in projects delivered or under A major strength has been the clarity of construction since it was first launched. the vision for South East Queensland. The plan strives to provide for “a region of DISTINCTION communities, with excellent interconnected accessibility and has an extensive and of efficient A major strength been the clarity the vision public transport system to assist in reducing for South East Queensland. greenhouse gas emissions”. The plan strives to provide for “a region of interconnected communities, with excellent accessibility and an extensive and efficient public transport system to assist in reducing greenhouse gas emissions”.

DISTINCTION The SEQ planning process has demonstrated DISTINCTION the power and importance of both continuous review and commitment, displaying The SEQ planning process hasclearly demonstrated the the significance and success integrated land use power and importance of bothofcontinuous review and planning. andinfrastructure commitment, clearly displaying the significance and 2005 successSEQ of integrated landPlan use and infrastructure The Regional had its genesis inplanning. the SEQ2001 planning process beginning inThe 1990, a coordinated 2005and SEQprovided Regional Plan had its genesis in the approach to managing SEQ2001 planning processgrowth. beginning in 1990, and

provided a coordinated approach in to managing The first SEQIPP was prepared conjunction growth. with the Regional Plan in 2005, and has been updated annually to align with revised planning The first SEQIPP was prepared in conjunction with the and budget commitments. Regional Plan in 2005, and has been updated annually to align with revised planning and budget commitments. PASS SEQIPP PASS addresses all infrastructure needs including transport, health, education, energy, SEQIPPand addresses all infrastructure water community services,needs andincluding clearly transport,ahealth, education, energy, water and outlines program of infrastructure priorities community services, andinclearly outlines term. a program of deliverable now and the longer infrastructure priorities deliverable now and in the longer Since 2005, 119 projects have been term. completed, 152 projects are currently Since 2005,and 119 projects have been completed, underway a further 128 projects are 152 projects between are currently underway and a further 128 planned now and 2031. projects are now and However, dueplanned to the between level of debt and2031. changed

1990

2000

2010

Expected completion

Continuing progress

New Study

State elections

Regional Plan 09-31

Eddington Report

Projects underway

Project Completed

Regional Plan 05-26

Construction commenced

2001 Project Report

SSA & VFT shelved

government theoffuture of changed the plan and However, due policy, to the level debt and the rate of delivery under a cloud. government policy, theisfuture of the plan and the rate of delivery is under a cloud.

Badgery's Creek preferred

3rd runway approved

MANS Study released

Site selection studies

with travel time distance It hassignificant delivered high benefits to and road users with savings. has recognised significantThe travelM7 time andbeen distance savings. Theboth M7 has bybeen therecognised Federal both Government and the private by the Federal Government and the sector an example of best practice. privateas sectorv as an example of best practice.

This is a rare example of collaborative success at this level of government.

Badgery's Creek purchase

DISTINCTION With insufficient government funding, the DISTINCTION M7 was procured as a BOOT PPP with a With insufficient government funding, the M7 was comprehensive and detailed procurement procured as a BOOT PPP with a comprehensive and process. detailed procurement process. The project had a sound business case as a The project hadviable a soundtoll business case as a commercially road with equitable commercially viable toll road distance tolling being usedwith for equitable the first time. tolling being used for the first time. It distance has delivered high benefits to road users

Counterbalancing thistheare theGovernment criticismswith from Strong leadership from State the localGovernment affected communities Federal support has ledand to thesome project being interest groups. conceived and implemented over a very short period of four years.

Studies underway

There was multi-government and multiagency involvement including joint Commonwealth / State and multi-agency review panels and steering committees, as well as extensive stakeholder DISTINCTION communication and consultation. The importance of a major route through western Sydney was recognised early and the visionary step was to create the M7 out ofDISTINCTION the plans for the National Highway and the Orbital Network. TheSydney importance of a major route through western Sydney Significant sections route was recognised early and of the the visionary stepwere was to identified and as create the M7 outcorridors of the plans were for the resumed National Highway part of the County of Cumberland Plan in and the Sydney Orbital Network. the 1950s. Significant sections of the route were identified These initiatives demonstrate the of long and corridors were resumed as part the term County vision and consistent planning of Cumberland Plan in the 1950s. which laid the groundwork for the project's success. These initiatives demonstrate the long term vision and consistent planning which laid the groundwork for the project’s success. CREDIT Conceptual planning over several decades CREDIT with broader metro strategies were integrated success drivers here. Conceptual planning over several decades integrated withcommunity broader metro strategies were success drivers here. The was consulted early and continuously, leading to a number The community was consulted early and ofcontinuously, changes toleading the original concepts thatto the to a number of changes took intoconcepts account patterns urbanpatterns and original that took intoof account commercial particularly of urban and development, commercial development, particularly industrial andemployment employment zones. industrial and zones. It provided the catalyst for major employment It provided the catalyst for major employment growth growth in western Sydney. One negative was in western Sydney. One negative was that the road that the road alignment did not make provision alignment did not make provision for a future orbital for a future orbital railway. railway.

This is a rare example of collaborative success at this level of government. DISTINCTION

Preferred route announced

There was multi-government and multiDISTINCTION agency involvement including joint Notwithstanding the/ State complicated between Commonwealth and relationships multi-agency Federal panels and Stateand Governments, thecommittees, success of the M7 review steering Motorway the greatstakeholder benefits that result when as well asshows extensive governments and theand community work together. communication consultation.

Initiate SEQ Plan

DISTINCTION Notwithstanding the complicated relationships between Federal and BUILT State Governments, the success of the M7 Motorway shows the great benefits thatSYDNEY result when governments and M7 WESTLINK the community work together.

Consulting Matters Our industry

Left: Lend Lease’s Darling Quarter and Commonwealth Bank Place in Sydney has 6 Star Green Star ratings for both design and construction. Top: Monash University’s Briggs and Jackomos Hall was the first residential building to achieve a 5 Star Green Star – Multi Unit Residential As Built v 1 rating. Right: Wangaratta High School is one of 120 education projects around Australia to be either Green Star-certified or registered to achieve a Green Star rating. Photos courtesy GBCA

The black and white of Green Star The evidence is all there in black and white: Green Star-rated buildings emit around a third of the greenhouse gas emissions and use a third of the electricity when compared with the average Australian building.

The findings have exceeded our most optimistic expectations. And here’s why:

Green Star-rated buildings also use half the water of buildings that simply meet minimum industry requirements.

On average, Green Star-certified buildings used in the study produce 62 per cent fewer greenhouse gas emissions and use 66 per cent less electricity than average Australian buildings.

Our new report, The Value of Green Star: A decade of environmental benefits, analyses the data from 428 Green Star-certified projects occupying 5,746,000 million square metres across Australia and compares it to the ‘average’ Australian building and minimum practice benchmarks. This is the first time we’ve quantified the overall impact of Green Star on greenhouse gas emissions, operational energy and water consumption, and construction and demolition waste.

ENERGY

They also produce 45 per cent fewer greenhouse gas emissions and consume 50 per cent less electricity than new buildings designed and constructed simply to meet construction code requirements. This means that new buildings designed and constructed without the guidance of Green Star will consume double the energy – and have double the energy costs – of Green Star-rated buildings.

Taken together, the 428 Green Star buildings have reduced electricity consumption by 580,000 megawatts per year. This reduction is equivalent to five per cent of the Hazelwood Power Plant’s total annual output, or the same as 76,000 average households’ annual electricity use. What’s more, the cumulative greenhouse gas savings from the Green Star-rated buildings surveyed, when compared to the average, totals 625,000 tonnes of carbon dioxide a year. That’s equivalent to taking 172,000 cars from our roads.

WATER Our research found that Green Star buildings use 51 per cent less potable water than average buildings. That saving – which amounts to 3,300,000 kilolitres of potable

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water a year – is enough to service 18,000 households or fill 1,320 Olympic swimming pools.

In total, 37,600 truckloads of construction and demolition waste from Green Starrated projects - 564,000 tonnes - have been diverted from landfill due to good waste management practices.

These water-saving measures deliver significant payoffs, from cost savings to habitat conservation, and from reduced pressure on infrastructure to energy conservation, as improved water efficiency reduces the need for water pumping, delivery and waste water treatment.

THE HIGHER THE RATING, THE GREATER THE SAVINGS Our research also finds, unsurprisingly, that the higher the Green Star rating, the greater the environmental savings across the four key areas of greenhouse gas emissions, energy use, water consumption, and construction and demolition waste.

WASTE The 2010 National Waste Report found that construction and demolition waste accounts for 38 per cent of the total waste sent to landfill.

Our dataset for office projects is perhaps most instructive, as Green Star - Office Design and As Built projects account for 58 per cent of projects included in our study and 70 per cent of rated floor area.The table below outlines the environmental outcomes of the average Green Star office building in Australia.

The average new construction project has a 58 per cent recycling rate. In comparison, Green Star - As Built certified buildings (those projects that achieve a rating for completed construction) are recycling 96 per cent of their construction demolition waste.

Hundreds of building projects around Australia, from offices to factories, shopping centres to schools, libraries to hospitals, have achieved Green Star ratings. While we’ve generated a large number of case studies and have substantial anecdotal evidence of Green Star’s transformative effect on sustainability at the individual building level, until now we’ve had no comprehensive quantitative data to demonstrate Green Star’s overall impact on Australia’s built environment. This report confirms what we’ve been saying for a decade – Green Star buildings are slashing greenhouse gas emissions, making significant savings on energy and water consumption and costs, and preventing truckloads of waste from going to landfill. The savings that Green Star is delivering financial, social and environmental – are just too good to ignore. Romilly Madew CEO Green Building Council of Australia

Average Green Star project1

4 Star

5 Star

6 Star

Average existing building

Greenhouse gas emissions (kgCO2 /m2 /annum)

163

Electricity use (kWh/m2 /annum)

145

Natural gas use (MJ/m2 /annum)

116

2932

Water consumption (kL/m2 /annum)

499

540

510

430

1,130

Construction and demolition waste generated (kg/m2)

519

367

675

395

519

Construction and demolition waste to landfill (kg/m2)

218

The average Green Star rating across all building types is 4.72 Stars. Many of the buildings awarded 6 Star Green Star ratings include natural gas fuelled co-generation or tri-generation systems. This results in significant reductions in grid electricity consumption and increases in natural gas consumption when these buildings are compared to their 4 Star and 5 Star Green Star certified counterparts.

Download The Value of Green Star: A decade of environmental benefits from the GBCA website: www.gbca.org.au/valueofgreenstar

Consulting Matters Industry comment

Why Infrastructure Sustainability is good for your business

Global leaders now acknowledge that the impacts of climate change require new approaches to the design, construction, and operation of our infrastructure. Scientists warn that we must be prepared for higher average temperatures, more extreme weather events and sea level rises, all of which have already significantly impacted our nationâ&#x20AC;&#x2122;s infrastructure systems. With this in mind, owners and managers of our infrastructure assets must place greater emphasis on the immediate and long-term impacts and benefits of their projects on the community and the environment, in addition to the economy, and their own financial bottom line. Sustainability must be a consideration throughout all phases of infrastructure delivery and operation. Through real-life examples and peer-reviewed research, Why Infrastructure Sustainability is good for your business will show you how to develop the business case for including sustainability outcomes as a requirement on your infrastructure and engineering asset projects, from concept through re-development. It shows how doing so will add value to your business. Prof. David Hood Project Leader Past-President of Engineers Australia

Why Infrastructure Sustainability is good for your business is available to purchase through the Consult Australia bookshop www.consultaustralia.com.au

Environmental consultants and agility

In response to turbulent local (and global) market conditions, as environmental consultants, we need to become even more agile as we shift from a â&#x20AC;&#x2DC;rushâ&#x20AC;&#x2122; of project approvals and impact assessment in the resources sector, to focusing on site compliance and environmental management for current mining operations. The coal seam gas market in Queensland will continue to provide environmental service opportunities across project life cycles, especially as a number of projects progress through construction and commissioning. In our capital cities, our focus will remain squarely on which infrastructure projects form part of political promises during 2013; setting the scene for State elections and/or delivery in 2014. We all wait in hope for further cutting of green tape in our regulatory regimes so that project delivery can be faster to market. The increasing Commonwealth interest in strategic impact assessment is an emerging dynamic that is yet to be fully tested in realising the benefits of streamlining approval processes. Christine Wyatt Global Market Leader Environment GHD

Industry comment Consulting Matters

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SLR Consulting Australia selected a broker associated with Consult Australia PI Pathway, as the services provided seemed an ideal match. The broker was able to ensure continuity of cover, broadening the scope of cover and negotiating a reduced premium. Their contract review service and ongoing staff risk management training have proven invaluable to our business, enhancing the professional standard of our client contractual relations and improving the quality of our service delivery. SLR Consulting Australia Pty Ltd

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