Spring 2013 Consulting Matters by Consult Australia

SPRING 2013

Stakeholder engagement Human values underpin

stakeholder conversations

Effective

community engagement

with a business case through a shared value approach

Stakeholder engagementâ&#x20AC;&#x201D;

winning over governments

It’s always good to be first. 2

Consulting Matters

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Consulting Matters

CONTENTS Protecting your business Economic Forecast September edition 62 Why you should be engaged in your Professional Indemnity insurance renewal

Stakeholder

engagement

Business essentials Fee scales... do they help or hinder?

Corporate social responsibility Project Seres in Guatemala

Uni experiment a hit with Indigenous students

Our industry G21 Public Transport Strategy

Watching delivery of ore to the crusher at Prominent Hill. Photo courtesy OZ Minerals

Industry updates 2

What’s on in our industry

What’s happening at Consult Australia From the President From the CEO

8 9

Stakeholder engagement— winning over governments

2013 Policy wins January-June

Changes to the subclass 457 visa

Assistance with skilled migration

Kicking goals in Building Information Modelling (BIM)

Valuing Better Engagement

Linking Canberra to the lake

Sunshine Coast University Hospital

Industry comment

Features

Industry updates

Effective community engagement with a business case through a shared value approach

Cracking the media code

The secret to stakeholder engagement in tough times

Stakeholder engagement—a curious paradox

Why diversity targets are good for business

Planning NSW: engaging in the new system

Supporting nation building projects

High speed rail (position statement)

A Western Sydney Airport (position statement)

High speed rail - the policy case (opinion piece)

Sydey West Airport (opinion piece)

Human values underpin stakeholder conversations Resource employers ramp-up call for skilled women Why we invest in infrastructure

Australians and the urban environment: What do they want and how do we deliver?

Supporting small business through digital business kits

Traditional stakeholder engagement is dead

State Division updates

FutureNet updates

I can just barely hear you: amplifying the quiet sound of the silent stakeholder

Supporting nation building projects special

Consulting Matters

Industry updates

Industry updates MAJOR WINS

NEW APPOINTMENTS Leading consultant appoints new leaders GHD has announced a number of strategic leadership changes. David Kinniburgh, the company’s former Manager – Sydney has been appointed as Global Market Leader – Transportation. Phil Duthie, who has managed GHD’s services portfolio in recent years, has been appointed as General Manager for Australia and New Zealand. Heading up the company’s merger and acquisition initiatives is John Baird, who most recently oversaw the Australian and New Zealand operations. Opus International Consultants appointments Opus International Consultants has appointed Travis Gilbertson to the position of Transportation Asset Management (TAM) Sector Leader Australia. Travis has been with Opus for 27 years and is acknowledged as a leader in asset management globally, having held senior roles in New Zealand, Canada, and Australia. Leading waste specialist joins SLR

Arup appoints new regional environmental leader for Australasia

PI pathway partner wins small broker of the year

David Spink recently joined Arup as the Australasian Environment Leader. David brings with him more than 25 years’ experience as Project Director and Project Manager in environmental management of projects across transport, water, energy, industrial and government sectors, preceded by several years in industry and training.

IBL Limited (IBL) trading as Architects Professional Risk Services and Planned Professional Risk Services was announced the 2013 Small Broker of the Year at the 10th annual Australian Insurance Industry Awards held in Sydney on 14 August 2013. Congratulations to Consult Australia’s PI pathway broker!

AECOM appoints Light Rail Technical Director

Aurecon CEO wins Monash Uni Alumnus of the Year

Based in Melbourne, Philip Purdy will lead AECOM’s Light Rail service across Australia and New Zealand, partnering with public and private sector clients to respond to light rail market demands and opportunities.

Aurecon CEO, Paul Hardy has been awarded Monash University’s Department of Civil Engineering Alumnus of the Year for 2013, which recognises alumni who have made a significant contribution to the engineering profession and the community.

Hyder welcomes Meighan Heard as Regional General Counsel

Hyder appointed to North West Rail Link

Hyder Consulting announced Meighan Heard has joined the firm as Regional General Counsel. Meighan will provide advice on the full range of legal issues applicable to organisations working within the consulting industry in Australia.

Richard McAree has recently joined leading independent environmental consultancy SLR Consulting Australia as Technical Director and Business Sector Leader for waste and sustainability services.

The Thiess John Holland Dragados unincorporated Joint Venture (TJHD JV) was recently awarded the $1.15 billion North West Rail Tunnel and Station Civil Works (TSC) contract. The TSC contract includes the temporary excavations and surface civil works to facilitate the later construction of five new stations Condamine Alliance wins United Nations biodiversity award The Condamine Alliance has been awarded the World Environment Day Award for Biodiversity by the United Nations Association of Australia. Established in 2002, the Alliance is the regional body for natural resource management in the Condamine catchment in Queensland, Australia.

RedR Australia was established in 1992 and has since evolved to offer a breadth of skills and experience in emergencies. Its Standby Register comprises professionals from a broad range of skillsets including: engineering, public health, nutrition, water and sanitation, information management and GIS, humanitarian protection, public information and communications, logistics and site planning. RedR Australia is the only Standby Partner to United Nations relief agencies in the Southern Hemisphere and is also a leading provider of humanitarian preparedness training, working to build resilience in disaster-affected communities around the world. Water, sanitation and hygiene in emergencies

www.redr.org.au

The purpose of RedR Australia's Water, Sanitation and Hygiene (WASH) in Emergencies course is to introduce participants to concepts of public health engineering / environmental health in emergencies and to familiarise them with standard equipment applied in the field. The course will take place from 7-13 October 2013 in Dookie in Central Victoria.

Industry updates

Consulting Matters

INDUSTRY ANNOUNCEMENTS AECOM releases 15th annual Blue Book According to this year’s Blue Book from AECOM, Australia’s buildings construction market is the most adversarial in global rankings—stifling the delivery of new property developments and social infrastructure—yet has expressed a desire to improve project efficiency and profitability through collaboration.

Editor Megan Motto

Editorial Coordinator

INDUSTRY CONTRIBUTORS Sam Collard – Steensen Varming Andrew Pettifer – Arup Phil Potterton – Chartered Institute of Logistics and Transport and GHD Barry Murphy – formerly Federal Airports Corporation Sue Wiblin – The GPT Group Nicole Smith – Tin Shed Marketing Jayne-Maree Sedgman – Media Savvy Emma Pryor – MWH Global David Singleton – Arup Mark Vassarotti – Arup Economics Mark Bruzzone – MWH Global Kylie Cochrane – Sinclair Knight Merz Nea Pilgrim – Sinclair Knight Merz Leah O’Brien-Addison – SLR Consulting Charlie Wilson-Clark – Golder Associates Alex Blood – Golder Associates Tara Diamond – AMMA Chris Bovill – BRIC Gerard Ryan – Parsons Brinckerhoff Ric Navarro – Norman Disney & Young Sally Wood – SMEC David Mitchell – Mitchell Brandtman 5D Quantity Surveyors Fran Woodruff – AECOM Helen Conway – Workplace Gender Equality Agency Sara Wilson – AECOM

Gillian O’Young

President Jamie Shelton

Chief Operating Officer Julia Lemercier

Director of Policy Jonathan Cartledge

Senior Policy Advisor Jonathan Russell

Senior Legal Policy Advisor Robin Schuck

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 Satinder Pasricha

Editorial Submissions gillian@consultaustralia.com.au

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

www.consultaustralia.com.au

Consulting Matters

Industry updates

Whatâ&#x20AC;&#x2122;s on in our industry Global November 9-13, Saudi Arabia 17th International Road Federation (IRF) World Meeting & Exhibition 2013 http://irf2013.org/

Victoria

New South Wales

October 12-13, Melbourne Pathways to working in the humanitarian sector www.architectswithoutfrontiers.com.au

September 24, Sydney Consult Australia HR Symposium www.consultaustralia.com.au

November 21-22, Melbourne Consult Australia: Safety in Design www.consultaustralia.com.au

National September 6, national Webinar: The secret to stakeholder engagement in tough times www.consultaustralia.com.au

2013 Awards for Excellence

October 14-November 1, national Consult Australia Young Professional Exchange Program www.consultaustralia.com.au October 24, national Webinar: Work/life chaos & the case for flexible working www.consultaustralia.com.au November 14, national Webinar: Insurance claims - behind the scenes www.consultaustralia.com.au

Tickets now available! December 6, Melbourne Consult Australia 2013 Awards for Excellence www.consultaustralia.com.au March 18-19, Melbourne Green Cities 2014 www.greencities.org.au/

Queensland October 24-26, Brisbane Consult Australia: Safety in Design www.consultaustralia.com.au

Welcome new member firms Consult Australia welcomes new member firms: K4DGeotechnics Pty Ltd

September 30-October 4, Sydney & Wollongong International Symposium for Next Generation Infrastructure www.isngi.org October 10-11, Sydney Consult Australia: Project Management www.consultaustralia.com.au October 21-22, Sydney Institute for Sustainable Futures - Travel Planning www.gbca.org.au/events/

Western Australia October 3-5, Perth Consult Australia: Contracts for Consultants www.consultaustralia.com.au October 15, Perth Consult Australia & Association of Consulting Architects present a joint Luncheon with Jeff Speck www.consultaustralia.com.au October 16, Perth CEDA WA Annual Resources Overview www.ceda.com.au

South Australia October 23, Adelaide Responding to the Digital Era www.ceda.com.au

BIM Consulting DJG & Associates Ener-G Management Group Phanith Chan Specialist Testing & Technical Services Pty Ltd Thirkell Consulting Engineers

October 30-November 1, Adelaide National Housing Conference 2013 http://nhc.edu.au/

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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 Editorial Coordinator (max 200 words) at gillian@consultaustralia.com.au. Letters to Consulting Matters must carry the sender’s name and firm. We do not acknowledge the receipt of unpublished letters. When submitting your letter for publication you agree that we may edit it for legal, space or other reasons.

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 Chief Operating Officer, Julia Lemercier on (02) 9922 4711 or email julia@consultaustralia.com.au

• Policy

www.consultaustralia.com.au

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Industry updates

Consulting Matters

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What’s happening at Consult Australia

From the President Through the search to better understand our clients we have gradually become aware of the need for broader engagement. In today’s interconnected world, gone are the days where—as technical, qualified professionals in our relevant fields—we have the final say on matters which are important to the community. We now live and work in an age when society no longer accepts that individuals should enjoy such an exclusive and privileged position. Years of devoted studies and professional development put us in a position where we can share our expertise in order to serve the community; however ultimately we must seek out input and involvement from our many stakeholders. Consultants have long seen their clients as an important stakeholder and have devoted lots of time and energy towards understanding their needs and expectations. But this is no longer enough. Through the search to better understand our clients we have gradually become aware of the need for broader engagement. Now not only is our traditional stakeholder (the client) becoming more involved, the number of stakeholders we have is increasing. The expectation from all of these groups and individuals goes beyond remaining informed of decisions made; they want the opportunity to affect outcomes and be part of the decision-making process. These stakeholders may be a well defined group and the issue at hand could be very focused; as might be the case if you were engaging with staff about the design of a new workplace. On the other hand, the stakeholder group could be very broad—even undefined— and the issues multifaceted and complex; such as selecting a route for a new commuter rail service. In either case there is the need for a skilled party to—at the very least—oversee the process, and in most cases undertake a large portion of the face-to-face work. If we care about engaging with stakeholders—because we recognise that it can bring about better results—then we must be prepared to move beyond token efforts that accompany the business as usual approach of doing (or being seen to do) the right thing.

We must approach stakeholder engagement with the same professionalism and rigour that we apply to our technical and project management roles. Properly managing a commitment to our projects and designs, with the responsibility to act with openness, integrity and honesty will see better outcomes for all stakeholders. Importantly, it is more than just hearing from outspoken individuals with little interest other than a self-serving need, or those driven by single agendas that either can’t or refuse to see the bigger picture. True engagement starts with hearing the unbridled perspectives of groups likely to be affected by what we are thinking about doing. Some stakeholders will be immediately apparent—both to themselves and us, whereas others will need to be sought out and informed; even educated so they can fully appreciate their right and indeed their obligation to take an active interest the issues and contribute to better outcomes. Consult Australia is always actively engaging with a wide array of stakeholders; from member firms and their employees, to policy makers, industry, all levels of governments, agencies and of course the larger community. In this edition of Consulting Matters we are pleased to publish an array of interesting and valuable articles which break down effective stakeholder engagement, provide food for thought and tips and tricks and showcase best practice engagement—not just by member firms, but industry leaders and indeed the Consult Australia team itself. Soon Consult Australia will be engaging with our membership for Board elections, which take place every two years and for which any employee from a member firm is eligible to nominate. You’ll see a call for nominations within the next month, ahead of an election later in the year. I look forward to engaging with you during this process.

Jamie Shelton Consult Australia

What’s happening at Consult Australia

Consulting Matters

From the CEO The rise of the professional services industry and the aim to position Australia as an advanced services hub will see industry competition get tougher over time. Firms will have to be technically outstanding just to pre-qualify in the market. Beyond that they will need to hone their skills in relationship building, community consultation and project management, and underpinning all these areas, they will need a strong skill base in communication and the ability to manage expectations. As I so regularly say, our members are not in the mining, infrastructure or buildings business, but in the people business; therefore effective stakeholder engagement is crucial to success. Consult Australia has a strong record in engagement as demonstrated by our emergence as one of the key advocacy organisations in the built environment sector. We have in fact gained a reputation as one of the most collaborative organisations, which put us in good stead to achieve many of the policy and advocacy wins you will read about further in the pages ahead. Over recent years we have also undergone an extensive transformation, and the success of our internal stakeholder engagement throughout our name and constitution change is a testament to the way we have taken both our internal and external stakeholders with us on our journey. In thinking about these processes of stakeholder engagement—with industry, government our members and internally as an organisation—thought I might go back to basics and reflect on some of the key learnings from these experiences to help write this column. It turns out the guiding principles have been pretty simple, as evidenced below. 1. Face to face first, phone second, email last! In this technological age it is all too easy to turn to email as the first option for communication. While it is certainly convenient (particularly with mobile technology) and often appropriate, I feel there are many missed opportunities for relationship building through good old fashioned face to face, or at the very least, phone conversations. Everyone knows this rule (and all the reasons for it) but I still see it broken far too often. Recognising this hierarchy of communication was particularly critical for us when we embarked on our name change program. Even after face to face meetings and extensive

email and mail correspondence we still weren’t completely satisfied that everyone was properly engaged in the process—so we rang every single voting member. A hugely time consuming process, but also incredibly rewarding and demonstrative of the power of engagement outside the realm of email! 2. Be authentic and transparent— no hidden agendas Most people can smell a rat a mile off. With all changes there are both challenges and opportunities that come with it—you need to put all the baggage on the table and work through it with honesty. We did this with both our name and Constitution change and for both we saw successful results, but more importantly a lot of renewed respect from the membership. 3. Tell the story—engagement need to be engaging! This is a big failure for many leaders (including at least one former Prime Minister). People will listen to a point, but will only be persuaded when there is enough context provided to paint a picture. It is interesting to note that neurologically, decisions are made in the right side of the brain, which is the side that also controls emotions—so decisions are actually made emotionally, and then we use logic second to back up our perspective. 4. Consider alternate perspectives Whatever the circumstances—think about a negotiation from the other parties’ point of view and recognise that the positions people take are often not directly related to the drivers of their behaviours. What do they want, but more importantly, why do they want it? This is critical for negotiations—the easiest wins can often be achieved when you give due consideration to the other party’s perspective. 5. Maintain relationships and help others to win Relationships need to be well maintained in order to flourish. Don’t only call when you have a request! This is one of the reasons Consult Australia is directing efforts at being more involved in broader public policy issues—if we are there to help politicians and bureaucrats solve their problems; they will be more willing to listen to ours when it comes to negotiation. Recognising the significance of your various

stakeholders and the importance of properly engaging with them I hope prompts to you book tickets for you and your clients to join us for our annual Awards for Excellence which will take place on Friday, 6 December in Melbourne. Finally, despite my first point, social media is a great way to stay connected. I invite all members to connect to Consult Australia’s LinkedIn page, which we will be using more often to push out announcements to our network.

Megan Motto Consult Australia

Consulting Matters What’s happening at Consult Australia

Stakeholder engagement – winning over governments THIS EDITION OF CONSULTING MATTERS FOCUSES ON STAKEHOLDER RELATIONS AND WHAT IT MEANS FOR YOUR BUSINESS. OUR REGULAR SUMMARY OF POLICY WINS SET OUT ON THE FOLLOWING PAGES HIGHLIGHT THOSE AREAS WHERE CONSULT AUSTRALIA’S ENGAGEMENT WITH GOVERNMENT HELPS DELIVER BETTER PUBLIC POLICY AND AN IMPROVED OPERATING ENVIRONMENT FOR YOUR FIRM. As we reflect on stakeholder engagement in the broadest sense, it is useful to examine in more detail the trials and tribulations of our own advocacy with government on behalf of the industry. The examples below demonstrate both the power of good government relations work, and the need to take a long-term view when fighting for change.

COLLECTIVE ACTION: A CAP ON PERSONAL TAX DEDUCTIONS FOR SELF-EDUCATION EXPENSES

In 2013, the federal Government announced that a $2,000 cap on work-related education expense deductions would be introduced from 1 July 2014. The Government introduced this as a savings measure to help offset the cost of a package of measures that will support the National Plan for School Improvement (also known as the Gonski reforms). The unintended consequence of the proposed cap was a dumbing-down of the Australian workforce with a consequential negative impact on workforce productivity. The Government seemed to expect employers to put more money into training, even though more isn’t available. Professionals in rural and regional Australia would decrease travel to city-based training courses and lose their competitive edge. Mothers returning to work would be less able to boost their re-entry to the workforce after having children and be left behind on the career ladder. Consult Australia engaged with the Government via its formal consultation process and, more importantly, joined a ‘Scrap the Cap Alliance’. The Alliance includes over 70 industry and professional associations and kicked off with a media event in Canberra to get public attention. Through sustained efforts by Alliance members, in August the Government finally agreed to defer the introduction of the cap by a year and spend more time consulting with stakeholders to find the best way to target excessive claims while ensuring the impact on genuine continuing professional development is minimised.

This rapid about-face by the Government is a big win for workers and employers alike and shows how stakeholder engagement is often a team effort.

SUSTAINED EFFORTS PAY-OFF: PROPORTIONATE LIABILITY IN WA

Usually, lobbying takes years to conclude and the pay-off is announced quietly, with the benefits taking time to be felt by industry. One such example came in August this year when Consult Australia was very pleased to report an exciting development in Western Australia. Following a couple of years of representations from Consult Australia and a coalition of other stakeholders in the built environment sector, the Western Australian Department of Finance’s Office of Building Management and Works (BMW) announced it will no longer contract out of proportionate liability. Industry was quietly told of the policy change in a letter from The Minister for Finance, The Hon. Mike Nahan MLA. As BMW manages a significant body of public sector work in Western Australia, this is a very pleasing development, and provides a great precedent for other public sector agencies to adopt a similar position in the near future. Slow and steady often wins the race.

TAKING THE LONGER VIEW: LABOUR MARKET TESTING FOR 457 VISA WORKERS

Stakeholder relations with Government doesn’t always go to plan, as was experienced in June this year as the Australian Parliament finalised reforms to temporary skilled migration legislation. The Government wanted to tighten rules on when and how companies employ temporary skilled migrants. Most notably, additional administrative requirements to prove that the domestic workers are given a fair chance to apply for vacancies were proposed.

Consult Australia lobbied hard on this issue to make sure that any reforms were sensible and did not add unnecessary burdens on employers. The opposition was onside and it looked like the Bill going through Parliament would be more-or-less acceptable until, at the 11th hour, unintelligible amendments were agreed to behind closed doors. The amendments mean that all employers of engineers are singled out for additional administrative burdens that have especially severe consequences for intra-company transfers. It is important to understand that laws are created by Parliaments and Parliaments can change them. With this in mind, Consult Australia has not stopped its stakeholder engagement to get a better deal for members. The second half of 2013 is being used to work with the Department of Immigration and Citizenship to write the Regulations that provide detail to what is in the revised Act. Next year will see the association lobbying the new Government to encourage sensible reform of the Act to create a level playing field for employers of engineers.

Jonathan Russell Consult Australia

What’s happening at Consult Australia Consulting Matters

A LESSON IN EFFECTIVE STAKEHOLDER ENGAGEMENT Over the coming weeks, as new ministers take up their positions in Canberra, so too will a whole cabal of new political staffers who will take up positions in the offices of those ministers. Many of these advisors will be arriving to work in portfolios completely new to them. One of the first things a good policy advisor in government will do after landing in a new role will be to draw up a list of their new policy area’s stakeholders. The list will in many ways be their bible for working in that policy area. It will reflect who stands to win and lose depending on decisions made in that policy area, and for the minister, it represents the group of people from where their praise or condemnation will come. When an advisor seeks expert advice from a source other than the public service, the stakeholders are the first group they will look to. Of course, it’s not always quite so simple. Which stakeholders should prevail when there are conflicting views put forward, or when multiple organisations claim to represent the same interest? A commonly heard maxim around the corridors of Parliament is ‘the squeaky wheel gets oiled.’ A strong media presence undoubtedly pushes any stakeholder to the front of the line outside the minister’s door. Partly, this is because of the inherent assumption that the media will get quotes from the stakeholders that have the most to gain or lose from any policy shift, but it also reflects the desire of our political leadership to receive positive media coverage. Politicians and their staff are highly sensitive to voices of condemnation in the media, and will generally respond quickly to any condemnation, while also being aware of the loudest voices of praise. In any event, a strong media presence serves to assist any stakeholder group as a basic marketing tool — raising awareness of that group and what they stand for. Policy makers can only respond to the people, organisations and submissions they’re aware of. However, while a strong media presence is important, there are other elements to being the stakeholder of choice. While at face value representing the major share of any constituency seems critical, that is not always enough by itself. A stakeholder will always enhance its position by being an expert in the policy subject matter under consideration. By presenting sensible policy proposals, founded on evidence-based research, stakeholders have the opportunity to

contribute to policy ideas that will work in their favour, and may also help government to solve policy problems. For example, ahead of the 2009 NSW State Budget, the state’s caravan industry association approached the Government appealing for the removal of stamp duty on caravan purchases, showing that NSW caravan retailers were losing business interstate, and pointing to a wealth of evidence of the hurt being caused to their industry. The Government responded by removing the tax in the budget, due to the representations made to them. In another NSW example, the NSW Business Chamber called for the establishment of the Office of Small Business Commissioner in 2010, which was soon adopted by the Coalition as policy ahead of the 2011 election, and then in government. Consult Australia has made a range of policy submissions over the years, and indeed our suggestions regarding infrastructure funding have recently been adopted by the Victorian Opposition as their policy. In this case, we proposed establishing Infrastructure Victoria to facilitate the creation of an infrastructure pipeline for funding, and policy and regulatory settings to encourage additional investment. The political positioning of key stakeholder groups is also worthy of consideration. Becoming the stakeholder of choice relies on a level of trustworthiness and integrity in any organisation’s dealings. It is common for members of our industry to be hesitant to criticise government of any stripe, owing to a concern that they may then be ‘blacklisted’. However, a better way to evaluate the appropriateness of criticism is whether a stakeholder consistently criticises only one side of politics while praising the other, or whether they have walked a constant path on a particular issue, endorsing supporters of their stance and criticising opponents. Those stakeholders who take a partisan line often find their access limited to decision makers on one side of the political divide, whereas those stakeholders who are unafraid to express their view consistently, but fairly, generally become well respected participants in the political and policy process. Politicians accept that stakeholders will talk, lobby and disseminate their ideas to other political parties, as is appropriate for any non-partisan organisation engaging with the political system. However, they view it as vital that stakeholders do so with integrity. This means not disclosing confidential discussions, respecting that policy announcements need

to be kept silent until the politician makes a public statement, and not setting any ‘traps’ for politicians in the course of engaging in policy debate. For many years now, Consult Australia and the firms of the consulting industry have had the building blocks in place to be leading stakeholders in policy debates relevant to our sector. Our challenge, to further enhance our standing with decision makers, is to boost our profile, and in doing so to overcome our fear of criticisms against decision makers. As Franklin Roosevelt once said, we have nothing to fear except fear itself.

Robin Schuck Consult Australia

FEDERAL ELECTION 2013 Campaigning throughout 2013, supporting key recommendations reflected in our 2013 Federal Election Platform. Key meetings to date included in person and/or with the offices of:  Prime

Minister, the Hon. Julia Gillard MP

 Minister

for Infrastructure and Transport, the Hon. Anthony Albanese MP

 Attorney

General, the Hon. Mark Dreyfus MP

 Minister

for Climate Change, Industry and Innovation, the Hon Greg Combet MP

 Minister

for Sustainability, Environment, Water Population and Communities, the Hon. Tony Burke MP

 Minister

for Employment and Workplace Relations, the Hon Bill Shorten MP

 Shadow

Minister for Climate Action, Environment and Heritage, the Hon. Greg Hunt MP

 Shadow

Parliamentary Secretary for the Status of Women, Senator Michaelia Cash

 Shadow

Parliamentary Secretary for Supporting Families, Jamie Briggs MP

 Shadow

Attorney-General Senator the Hon. George Brandis MP

 Shadow

Minister for Childcare and Early Childhood, the Hon. Sussan Ley MP

 Minister

 Shadow

 Minister

 Senator

for Tasmania, David Bushby

 Senator

for New South Wales, Arthur Sinodinos

 Member

for Kooyong, Josh Frydenberg MP

for the Status of Women, the Hon. Julie Collins MP for Early Childhood and Childcare, the Hon. Kate Ellis MP

 Minister

for Immigration and Citizenship, the Hon Brendan O’Connor MP

SKILLS • Generated significant political, media and public awareness of the impact of Government changes to 457 visas on the consulting industry. • Founding member of the Scrap the Tax Alliance, fighting against changes to personal tax deductions for self education expenses. • Continued advocacy led to the creation of the subclass 400 visa to help employers bring highly specialised nonongoing workers to Australia for up to three months. • Invited by the Canadian High Commission to present to a visiting delegation from Montreal Polytechnic

Minister for Immigration and Citizenship, Scott Morrison MP

on the importance of public advocacy for consulting firms and engineering professionals. • Advocacy across the political spectrum, including with the offices of the Minister for Immigration and Citizenship, Minister for Employment and Workplace Relations, and Shadow Minister for Immigration and Citizenship.

SUSTAINABILITY • Supported advocacy across jurisdictions by the Australian Sustainable Built Environment Council (ASBEC) for a Policy Framework for Climate Change Adaptation in the Built Environment.

WORKFORCE DIVERSITY • 11 CEOs of Consult Australia member firms signed the Charter of the Consult Australia Champions of Change, committing to actively advance equality across their businesses and to act as advocates for the consulting industry. • Advocacy across the political spectrum, including with the offices of the Prime Minister, Minister for the Status of Women, Minister for Early Childhood and Childcare, Shadow Parliamentary Secretary for the Status of Women, Shadow Parliamentary Secretary for Supporting Families, and the Shadow Minister for Childcare and Early Childhood.

January - June

2013 RESOURCES • Advocacy across the political spectrum, including with the offices of the Minister for Resources and Energy and Shadow Minister for Energy and Resources.

CONTRACTS, LIABILITY & PROCUREMENT •W orking with the new Office of the Industry Advocate in South Australia to achieve better contract terms for consultants engaging with public sector agencies in that state. • Met with the offices of Attorney-General, The Hon. Mark Dreyfus MP and Shadow Attorney-General George Brandis to discuss reforming proportionate liability laws around Australia to achieve a uniform national position against contracting out. • AS4122-2010 General Conditions of Contract for Consultants continues to be rolled out as our preferred agreement between consultants and their clients, providing fair, reasonable, clear and concise contract conditions for all parties. Consult Australia has held detailed discussions regarding the use of AS4122-2010 with QLD Department of Transport and Main Roads, QLD Department of Public Works, the NSW Department of Finance

48,000 firms

and Services, the Municipal Association of Victoria the WA Local Government Association, the WA Department of Finance and Services, the SA Department of Planning, Transport & Infrastructure and the NT Department of Employment and Business.

Mail, Herald Sun and other online publications through the submission of a letter to the Independent Local Government Review Panel’s ‘Better, Stronger Local Government’ paper, leading to the Panel’s recommendation to consolidate local government across NSW.

• One of only two industry representatives represented on the NSW Department of Finance and Services Policy and Industry Advisory Committee negotiating a new standard contract for consultants in NSW with representatives from over twelve NSW Government departments and agencies.

• Joint efforts with CEDA saw increased political and media focus on the issue of infrastructure funding supporting a more sophisticated debate regarding AAA credit ratings, government surplus and deficit budgets.

• Met with and made representations to a number of local, state and federal government agencies to discuss issues arising from their contracting practices.

INFRASTRUCTURE & URBAN DEVELOPMENT • Joined the Urban Coalition, comprising 10 leading industry bodies and released A New Deal for Urban Australia calling for the creation of an Urban Infrastructure Fund, a stronger role for Infrastructure Australia and a renewed focus on urban infrastructure by the Federal Government. • Through the Coalition for Local Government Reform, secured media coverage in The Daily Telegraph, Courier

• W ith Regional Development Australia (RDA) and 10,000 Friends of Greater Sydney (FROGS), launched Sydney 2051: A Plan for Action and led gathering of industry, business, education and government leaders to advance a vision for a greater Sydney.

WORKPLACE HEALTH & SAFETY •M et with the South Australian Department of Planning, Transport and Infrastructure to develop Workplace Health & Safety (WHS) guidelines for all stakeholders involved in construction work on their project. •S ecured position of a leading participant in activities to develop and enhance policies and responses to mental health issues in the workplace, partnering with a range of organisations including Beyond Blue and ACCI.

Consult Australia is the industry association that represents the business interests of consulting firms operating in the built and natural environment.

240,000 employees

$40 billion $1.4 billion in revenue

WINS

in exports

Our member firms’ services include, but are not limited to: design; architecture; technology; engineering; surveying; legal; and management solutions. We represent an industry comprising some 48,000 firms across Australia, ranging from sole practitioners through to some of Australia’s top 500 firms. Collectively, our industry is estimated to employ over 240,000 people, and generate combined revenue exceeding $40 billion a year. Consult Australia is a proud member of the Australian Chamber of Commerce and Industry (ACCI), the Australian Sustainable Built Environment Council (ASBEC), the Australian Construction Industry Forum (ACIF), the Australian Services Roundtable (ASR) and a host organisation for the annual Built Environment Meets Parliament summit (BEMP).

Consulting Matters What’s happening at Consult Australia

Changes to the subclass 457 visa MID-WAY THROUGH 2012, THE DEPARTMENT OF IMMIGRATION AND CITIZENSHIP (DIAC) IDENTIFIED THAT THE TEMPORARY WORK (SKILLED) (SUBCLASS 457) VISA PROGRAM WAS GROWING AT A RECORD RATE AND THAT A SIGNIFICANT COMPONENT OF THIS GROWTH HAD BEEN IN INDUSTRIES AND GEOGRAPHICAL REGIONS THAT DID NOT APPEAR TO BE EXPERIENCING SKILLS SHORTAGES. While most employers were using the subclass 457 appropriately, there was a concern that some users of the program were sourcing their skilled labour needs from outside of Australia without first checking the availability of labour locally. As a result, a number of regulatory changes were made to the subclass 457 program and introduced on 1 July 2013. These reforms will improve the integrity of the 457 program without adversely affecting businesses using the program to fill genuine skills shortages. As such, there should be no negative effects on businesses using the program appropriately. Sponsors should familiarise themselves with the new obligations and changes to existing obligations. The Labour Market Testing (LMT) changes did not commence on 1 July 2013. These changes will commence at a date yet to be determined and information will be made available to help sponsors understand the new requirements. The introduction of LMT should not adversely impact on businesses making a genuine effort to recruit locally before seeking workers from overseas.

How will the changes affect Australian businesses? These changes will strengthen the government’s capacity to identify and prevent employer practices that are not in keeping with the purpose of the subclass 457 program. Training benchmarks: Meeting the training benchmarks is now an ongoing and enforceable requirement rather than a commitment. Sponsors will be obligated to maintain records relating to training. This includes start-up businesses (i.e. businesses trading for less than 12 months) who initially provide an auditable training plan. Previously approved sponsors must demonstrate that they continued to meet the benchmarks during their sponsorship term when applying for a new sponsorship.

Nominations: A Visa Processing Officer (VPO) must be satisfied that the nominated position is genuine and may refuse the application if the tasks of the nominated occupation do not correspond to the tasks of the eligible occupation or if the position associated with the nominated occupation is not genuine. Employers are required to specify and justify the number of people the business proposes to nominate. The VPO could use the information contained in the application to propose an alternative number and agreement in writing is required for approval. A sponsorship will cease when the number of nominations is reached or the time period expires. Market salary: The market salary rate provisions have been expanded to apply beyond the particular workplace to that workplace’s regional locality. Where there is no equivalent Australian worker, the employer is still required to satisfy the Department that the terms and conditions of employment are appropriate for that location and industry. The market salary assessment exemption threshold has been increased to $250,000. Direct ‘employee-employer’ relationship: Employees must now be employed by their sponsor in a direct ‘employeeemployer’ relationship. This prohibits on-hire arrangements that fall outside approved Labour Agreements and prevents sponsors from engaging visa holders under arrangements that resemble those for independent contracting. Sponsors are required to keep a record of written contracts of employment with primary sponsored persons. Start-up businesses: The sponsorship approval for start-up businesses has been amended to an initial 12 months and all subclass 457 visa holders sponsored by start-up businesses are limited to an initial 12 month visa. Sponsorship obligations: Sponsors are also required to understand their new obligations. Sponsors will be required to pay certain costs associated with becoming a sponsor and not pass these costs, in any form, onto a sponsored person.

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

Assistance with skilled migration Satinder Pasricha has recently joined Consult Australia as a Department of Immigration and Citizenship (DIAC) Industry Outreach Officer. He is available to assist members nationally.

How will the changes affect current subclass 457 visa holders? There will be no adverse effects on existing visa holders. However, visa holders should note the changes to the English language and skills requirements if they plan to change employment, change occupation or seek a further subclass 457 visa. It is now a part of condition 8107 that a subclass 457 visa holder must commence work with their sponsor within 90 days of arriving in Australia. 457 visa holders will now also have 90 days to either depart Australia or find a new sponsor if their employment ceases.

How will the changes affect subclass 457 visa applicants? All subclass 457 visa applications lodged before 1 July 2013 but not finalised, will be subject to the new visa requirements. All applications lodged after 1 July 2013 will be subject to the new requirements. Most subclass 457 visa applicants will not be affected by the changes. In some circumstances further evidence to demonstrate claims for a subclass 457 visa may be required. Visa applicants should note the changes to the English language and skills requirements.

Changes to how subclass 457 applications can be lodged All subclass 457 sponsorship, nomination and visa applications must now be lodged online. For more information on the changes please visit the departmentâ&#x20AC;&#x2122;s website at www.immi.gov.au. Belinda Saunders Department of Immigration and Citizenship

The department offers a range of temporary and permanent visa options for skilled workers. Satinder can provide information and support to members in relation to DIACâ&#x20AC;&#x2122;s migration program to help address their labour needs. He can also assist members to understand immigration requirements and sponsor obligations. Satinder brings a broad range of experience and knowledge to the immigration liaison position, having worked in DIAC for almost 14 years after a 10-year career as a structural engineer. He has worked in the 457 Centre of Excellence processing temporary skilled migration applications, as well as in a variety of other roles, including humanitarian and refugee visa processing and a shift manager at Sydney Airport. Members may have seen Satinder in some episodes of the Channel 7 TV program, Border Security. Satinder looks forward to assisting members to remain up to date and understand the ever changing aspects of skilled migration. He will also offer his assistance in understanding the employer sanctions reforms that were introduced on 1 June 2013 and subclass 457 visa reforms introduced on 1 July 2013. The employer sanctions reforms require all Australian businesses to check their employees are allowed to work. Employers can check if non-citizens are allowed to work in Australia by using Visa Entitlement Verification Online (VEVO). A guide is also available for businesses on complying with the employer sanctions reforms, including understanding how and when to check if a prospective employee is allowed to work, on the DIAC website at: www.immi.gov.au/managing-australias-borders/ compliance/legalworkers/stepstocomply.htm Satinder can be reached Monday to Friday by email at satinder.jit.singh.pasricha@immi.gov.au or by telephone on 0413 234 126.

Consulting Matters What’s happening at Consult Australia

Kicking goals in Building Information Modelling (BIM) The sharing of Building Information Modelling (BIM) models and BIM objects is currently a significant topic within the construction sector. Concerns amongst consultants relate to what benefits contractors and clients will derive from the model and how to protect Intellectual Property (IP) whilst remaining mindful of professional indemnity. Debates around these issues can stifle and mask the potential uptake of BIM and are currently being considered by the newly formed BIM/ Integrated Project Delivery (IPD) Roundtable, a Consult Australia initiative being supported by a range of member firms. The full benefits of BIM reply on the ability of all parties in the supply chain to feed, disseminate and reuse object data to create efficiencies in their methods of working; be they designers, constructors or building managers. Ultimately, facilities managers are the ones that have the most potential and ability to extract the highest value from the model. Once a BIM model has been constructed, if it is not then developed beyond the completion of the design or construction stages, we are ultimately consigning that model to waste. So who owns the BIM model? The question arises due to the convergence into a single entity (the model) of information which previously would have been provided to a project in discrete elements. Firstly consider the unique data assembled for the purposes of describing the design, construction and operation of a particular facility. This is new IP created through the project and often clients will ask for this to be passed to them, given that they have paid for its creation. A preferable arrangement is for the creator of the IP to grant a licence for the client to use it for the purpose that is was created. Given the ease of portability and adaptability of electronic information when compared to the paper form, this limitation is critical in a BIM environment.

Now consider the information that might be embedded in the model that was not created specifically for the purposes of the project but which clearly has recurrent IP value, examples of this might be object data for generic product components, or the specification data that might be embedded therein. Clearly here the IP remains with the product supplier, just as handing over a manual for a piece of equipment supplied to a project does not mean that the IP comes with it. Further issues arise in the context of how liabilities relating to the accuracy of information inherent in the model are passed on as a single project model makes its way through the supply chain from designer to constructor to operator. Issues of complicated indemnities by BIM users, and limited warranties and disclaimers of liability by designers will need to be resolved. To date many project teams across the globe have succeeded in establishing credible construction BIM solutions. They have achieved this without having concluded or universally adopted BIM national or international standards on Level of Development (LOD), object creation standardisation, national library content, or agreed object shared parameter list content. Collaborative teams who have worked successfully in BIM may have simply not addressed these issues and just got on with it anyway, or have sought to at least mitigate the risks through effective scope definition in the form of a project BIM Management Plan. Standardisation around the form and content of BIM Management Plans would be a useful step forward; the best example at present being the American Institute of Architects E202–2008 BIM Protocol document, an easyto-understand and practical tool for using BIM across a project. Whilst initiatives such as Consult Australia’s BIM/IPD Roundtable will help to drive the industry towards resolution of the contractual

and legal challenges that BIM presents, little will be gained from stakeholders taking an overly protective stance on an issue that relies on openness and collaboration to achieve potential benefits for all parties. As Bill Shankly a revered manager of Liverpool FC soccer club used to tell his players, “Whilst you are considering what to do with the ball, why don’t you just stick it in the back of the net and we can discuss your options later”.

Sam Collard Technical Director Steensen Varming Andrew Pettifer Australasia Building Services Leader Arup

...little will be gained from stakeholderstaking an overly protective stance on an issue that relies on openness and collaboration to achieve potential benefits for all parties.

Coordinated services - section through ceiling Image courtesy Steensen Varming

Consulting Matters What’s happening at Consult Australia

Valuing Better Engagement ALONGSIDE OUR MEMBER FIRMS AECOM, GHD, KBR, PARSONS BRINCKERHOFF, SINCLAIR KNIGHT MERZ, AND WITH FLINDERS GROUP, CONSULT AUSTRALIA HAS LAUNCHED OUR VALUING BETTER ENGAGEMENT PROJECT TO IMPROVE THE PROCUREMENT, IMPLEMENTATION AND UNDERSTANDING OF ENGAGEMENT PRACTICES, THEIR VALUE AND WHAT CONSTITUTES BEST PRACTICE.

Consult Australia has long-recognised the importance of stakeholder engagement. Increasingly this issue is rightly identified as critical to achieving a range of strategic and operational objectives for public and private-sector clients alike. Recognising the opportunity to support best practice, Consult Australia has established a member-led Engagement Task Group comprising some of Australia’s leading thinkers in engagement. Two main objectives are guiding our work:

•

To improve the procurement, implementation and understanding of engagement practices, their value and what constitutes best practice, by Consult Australia member firms and their clients.

•

To lead the development of best practice engagement with key client groups, stakeholders and government.

Working collaboratively with the International Association for Public Participation (IAP2), two distinct, but related projects supporting best practice engagement are being progressed with the Task Group:

A GUIDE TO PROCURING SERVICES SUPPORTING ENGAGEMENT

Due to be published in the second half of this year, Consult Australia’s Guide to Procuring Engagement Services aims to support organisations to:

• • • •

identify the need for engagement services, enhance their understanding of engagement, ascertain when engagement services need to be acquired, and develop capability to procure engagement services that meet organisational needs.

Drafted for project leads and procurement professionals at all levels, the Guide recognises that there is no ‘one size fits all approach’ to engagement, and that achieving effective engagement is about tailoring the approach to the situation at hand. The Guide explores the benefits and risks associated with effective engagement, and explains the procurement process for engagement services in detail across a number of stages, including: moving from the decision to procure professional engagement services, through to developing a brief, going to market and signing the contract.

DEMONSTRATING THE VALUE OF ENGAGEMENT

Alongside the development of the Guide to Procuring Engagement Services, Consult Australia through our Engagement Task Group and again in collaboration with IAP2 is also commencing research to better understand the value of engagement at a project level. A key goal of the project is to demonstrate the value of engagement and the return on investment engagement provides as part of project delivery. Through our members and with the participation of engagement practitioners, we will be collecting data in order to consider how value has been created through engagement on individual projects. We will be working to gather data that illustrates the value of engagement activity created for projects, clients, industry, and communities in terms of, for example, delivery, design outcomes, risk mitigation, reputation, and broader stakeholder relationships. This is a longer term project that will be undertaken over the coming year. Stay tuned to future issues of Consulting Matters as we progress this work. Jonathan Cartledge Consult Australia

Consult Australia’s Guide to Procuring Engagement Services was made possible through the leadership provided by the following Consult Australia member firms:

With thanks also to Flinders Group. If you would like more information on the Procurement Guide, or our work seeking to demonstrate the value of engagement activity, we encourage you to get in touch. Contact me at jonathan@consultaustralia.com.au.

What’s happening at Consult Australia Consulting Matters

Supporting small business through digital business kits Small-to-medium sized firms across the professional services sector will soon be able to access customised advice on how to improve and build their businesses by using a range of digital business tools online.

led projects, high costs of purchasing software and training staff present limitations. A lack of understanding around the benefits and opportunities reflects the lack of time small firms have to get across the changes already happening.

The Australian Services Roundtable (ASR), of which Consult Australia is a proud member, has received a $500,000 grant from the Australian Government to develop a series of digital business kit deliverables to help services firms get online, using high-speed broadband and other digital platforms to drive productivity, find new markets and become more efficient.

That is where this program can make a difference. For those smaller firms where price is their major differentiator, in an increasingly competitive market this technology offers new market opportunities.

ASR will focus on providing relevant custom content for SMEs operating in a range of professional services sectors over the five year program, starting with the architecture and engineering sectors. In addition to traditional business improvement areas offered by broadband for these sectors, there will also be a focus on the impact of broadband on merging Building Information Modelling (BIM) and Integrated Project Delivery (IPD) techniques that are being pioneered in the sector.

Through ASR’s implementation of digital business kits, Consult Australia is looking forward to supporting smaller firms in transitioning to new technologies and ways of doing business. In understanding the issues and how to adapt their business model to take best advantage, there are great opportunities for firms to realise new productivity benefits.

Jonathan Cartledge Consult Australia

Chief Executive of ASR, Ian Birks said, “We will raise awareness of the kit via a purpose-built website, email and social media campaigns and through promotion to a range of stakeholders. The kit will be regularly updated to incorporate new ways of making use of broadband and Internet technologies as these emerge in the sector.” For Consult Australia’s member firms this program recognises the unique challenges facing smaller businesses. Particularly as firms consider how they can become ready to participate in BIM-

Directors of the Australian Services (ASR) Roundtable: Australian Institute of Architects’ Chief Executive, David Parken and Consult Australia’s Director of Policy, Jonathan Cartledge join Minister Assisting for the Digital Economy, Senator the Hon Kate Lundy as she announces digital business kits for ASR.

ASR will focus on providing relevant custom content for SMEs operating in a range of professional services sectors over the five year program, starting with the architecture and engineering sectors.

Supporting nation building projects Consult Australia has long been an advocate for nation building; calling for political, financing and planning reform to facilitate productivity enhancing infrastructure development and delivery. Traditionally, we have advocated strongly in support of best practice public policy for infrastructure delivery, rather than for specific projects; a strategic decision that considers the diverse interests of our members across what may be sometimes competing project and commercial interests. However, reflecting Consult Australiaâ&#x20AC;&#x2122;s increasing profile and advocacy efforts we are now more often asked if we hold a position in relation to major nation building projects such as a Western Sydney Airport and high speed rail. With recent inquiries supporting a more vocal public debate, these two projects were identified through our Infrastructure Roundtable as presenting a strong case for Consult Australia to adopt a clear position.

Having considered the merits of each project in detail, Consult Australia has been pleased to develop and adopt clear statements (published on the following pages) in relation to each of these projects. While these are high-level positions, our support for a Western Sydney Airport and high speed rail recognises the critical role of this type of national building for broader economic development. With these positions now finalised, Consult Australia is proud to be a supporter of the Western Sydney Airport Alliance, and looks forward to facilitating ongoing debate regarding the merits of high speed rail. To that end, in this edition of Consulting Matters, we are pleased to have contributions from former Federal Airports Corporation Chief Executive, Barry Murphy reflecting on a Western Sydney Airport, and former head of the Bureau of Infrastructure, Transport and Regional Economics and GHD Manager - Strategy & Economics, Phil Potterton reflecting on high speed rail. Jonathan Cartledge Consult Australia

High speed rail - POSITION STATEMENT -

The opportunities for urban and regional development in the High Speed Rail (HSR) corridor will be considered by many people in Australia to have a high potential value in public policy terms, but those benefits do not follow automatically or with certainty. Whether to proceed with planning for a future HSR program must necessarily be a policy decision, taking account of many factors that cannot be known with certainty, and in the context of risks which cannot be perfectly controlled. In this regard, inaction is not benign. In the absence of a protected route, the spread of cities and other developments in the preferred corridor will gradually reduce the constructability and increase the potential capital costs of a future HSR program, rendering it increasingly more difficult to implement, even while the fundamental trends may become increasingly favourable. 1

Consult Australia advocates a proactive approach by governments at all levels to preserve the option of implementing an East-coast high speed rail network in the future.

As a matter of urgency, the Australian Government, with the support of the relevant state and territory governments should establish a High Speed Rail Corridor Preservation Council to:

High speed rail could: provide new opportunities for regional and urban development, create new centres for business and jobs growth, and ease congestion in and between our cities.

•

prioritise, establish and implement regulatory frameworks to identify and preserve the most appropriate corridor,

•

undertake further work considering in more detail the economic and productivity benefits of high speed rail, including for example, increases in land value, regional development, urban decongestion, and

•

identify funding options that leverage the economic benefits to minimise government investment.

As per the foresight taken to preserve the Badgery’s Creek site for a Western Sydney airport, governments must take steps today to preserve the option of high speed rail for future generations. Taking steps now to acquire, or otherwise preserve, an identified corridor for high speed rail in the short-term could reduce future costs, for example by reducing the likelihood of additional tunnels as urban areas grow and preferred corridors become unavailable.2

These are the next critical steps towards the implementation of a high speed rail network. At what point governments will decide when it is appropriate to construct the first stage of that network is less important right now, than preserving the option to do so.

AECOM, SKM, Hyder et al. April 2013. High Speed Rail Study: Phase II. Key Findings. <www.infrastructure.gov.au>

AECOM, Grimshaw, KPMG, SKM. July 2011. High Speed Rail Study: Phase I. Page. II <www.infrastructure.gov.au>

A Western Sydney Airport - POSITION STATEMENT -

Aviation services are critical in a modern economy. They are particularly important in the case of Australia’s economy which has a strong focus on export markets and global tourism and services sectors. Access to efficient air services for passenger travel and timesensitive freight adds to the value of businesses and also to quality of life for Sydney residents. A failure to address the need for aviation infrastructure into the future would put at risk Sydney’s place as an international commercial and financial centre and Australia’s foremost tourist destination.

The option of doing nothing is no longer available and the costs of deferring action are unacceptable1:’

•

It is estimated that some 386,000 new jobs will be required in the Greater Western Sydney area by 2036.

•

A Western Sydney airport would: o generate enormous productivity benefits, o create thousands of new jobs,

The issue of a Western Sydney airport has been debated for over 60 years. The comprehensive 2012 joint study on aviation capacity in the Sydney region removes the need for any further debate both about the need for an airport in Western Sydney, or the suitability of Badgery’s Creek as the most appropriate location. The April 2013 study of Wilton makes it clear that there is no alternative site. Consult Australia supports the 2012 joint study recommendation to work with the community to plan towards the development of the first stage of the airport. Consult Australia believes Kingsford-Smith Airport will continue to be the most important airport for the Sydney region and for Australia, both for passengers and freight. However, a Western Sydney airport must be a national priority as it is critical to meeting demand and ensuring national productivity growth in the decades ahead.

o establish a new economic growth area in Western Sydney, and o create new opportunities for the efficient movement of freight and passengers, particularly during the current AM/PM peak periods.

•

The population of the Sydney Metropolitan Area will alone reach 6.2 million by 2036, with another two million in the surrounding region.

•

Demand for air services in the region will double to approximately 88 million passenger trips per year by 2035, then double again by 2060.

• •

The costs of inaction will be immeasurable. Support for an airport at Badgery’s Creek is widespread and includes: the Australian Chamber of Commerce and Industry, the NSW Business Chamber, the Sydney Business Chamber, the Tourism and Transport Forum and Unions NSW.

The Western Sydney Regional Organisation of Council’s has called for a major community consultation campaign to determine the views of Western Sydney residents towards building a second airport at Badgery’s Creek.

Joint study on aviation capacity in the Sydney region. March 2012. <www.infrastructure.gov.au>

For a detailed chronology of past debate prior to the Joint study, including a listing of past reports, see: Second Sydney Airport – A Chronology. 2002. Department of the Parliamentary Library. <www.aph.gov.au>

A Study of Wilton and RAAF Base Richmond for civil aviation operations. April 2013. <www.infrastructure.gov.au>

Consulting Matters What’s happening at Consult Australia

High speed rail - the policy case - OPINION PIECE The Federal Government’s High Speed Rail Study Phase 2 Report released in April this year finds that East-coast high speed rail is economically viable primarily on the basis of the time saving benefits to users, however is not financially viable overall and significant government funding would be needed for land acquisition and infrastructure.

Locations in the Sydney orbit such as Gosford (74km) and Moss Vale (127km) would become ‘commutable’, as would Victorian towns Seymour (112km from Melbourne) and Shepparton (178km). Over time, these and other locations, including Albury and Canberra, will expand their own employment bases, resulting in further metropolitan out-migration and a strong ‘reverse commuting’ effect.

With the taxpayer cost and timeframe of high speed rail, a de facto bipartisan policy commitment will be needed to make it happen. What might be its basis?

In the UK, the population of Ashford in Kent, located 90km from London on the London to Paris High Speed Rail line is expanding rapidly due to a 37 minute high speed rail travel time into St Pancras.

Firstly, high speed rail will help to decongest the aviation system. Reliability is already problematic, especially, but not exclusively, for regional passengers connecting to the capital city airports. Reliability is unlikely to improve, given the strong growth dynamic of air travel. If high speed rail were in place today, two thirds of the domestic air passengers using the airports in the East-coast corridor airports would be on the Brisbane-Sydney-Canberra-Melbourne route. Assuming roughly 50/50 mode sharing between rail and air (compared with 80 per cent air now), as per the report and in line with international experience, high speed rail would free up a quarter of the capacity of the main airports. Would we need this extra capacity if a Sydney West (Badgery’s Creek) airport eventuates? The answer is yes, because Sydney Airport, like Melbourne and Brisbane airports, will largely remain the airport of choice for airlines. This is due to relative proximity and transport links to the city centre and legacy factors of infrastructure and air network linkages. Modal competition between high speed rail and air should also lock in reliability improvement in the domestic aviation system, given the former’s record of close to 100 per cent on-time arrival. Airlines however, with their expertise in distance passenger travel, would appear a natural fit to operate high speed train services. The second policy rationale is the benefits of relieving major city planning pressures through high speed rail. Sydney, Melbourne and Brisbane are together expected to grow by around 60 per cent by 2050, from 11 million today to around 18 million in 2056, according to the Australian Bureau of Statistics (ABS). The two main strategies to cope with this are densification and growth at the fringe. While each is necessary, each has limitations. Densification faces issues of cost, road congestion and community acceptability. Fringe growth is constrained by the limits of topography, green belts and concerns about sprawl. High speed rail however, offers a third strategy – ‘jumping the fringe’ to link to regional towns and cities that can offer affordable mixed density housing combined with metropolitan job accessibility.

Commitment to high speed rail could in fact improve the chances of a Sydney West airport eventuating. It will signal that the airport will start—and may possibly stay— comparatively small. It will also lessen the need to search for new locations for housing within the Sydney basin— with Badgery’s Creek a prized one, should it ever become available. And if the airport does not eventuate, high speed rail to Canberra and its future international airport offers a partial ‘Plan B’. These two policy goals; aviation decongestion, and relieving city planning pressure are unambiguously positive for economic growth and productivity. To optimise the former goal—without compromising the latter—integrating with aviation is vital, so the rail line should stop at the airports of the four major cities, as well as their CBDs. Finally, high speed rail helps to ‘green’ the economy by addressing climate change. Assuming most seats are filled, high speed rail has fewer than half the CO2 emissions of aviation. Moreover, as electricity generation is progressively decarbonised in the years ahead, high speed rail’s emissions will taper similarly. Funding high speed rail may remain a challenge, but should be considered against the full costs of doing nothing. Phil Potterton GHD Chartered Institute of Logistics and Transport

Sydney West Airport - OPINION PIECE -

There can be no doubt that Sydney’s Kingsford Smith Airport (KSA) is one of Australia’s most important pieces of infrastructure—but in recognising its importance, we should not overlook its limitations for the future.

A few key points can be made – a)

KSA will stay as Sydney’s main airport. There is no suggestion that SWA will, or can, replace KSA. There are many examples around the world of such primary/secondary airport relationships. The current leaseholders of KSA (Sydney Airport Corporation Ltd [SACL]) have a first right of refusal over any second Regular Public Transport (RPT) airport within 100km of Sydney CBD until June 2032. A process exists whereby the Minister can make a different determination if extensive consultation with SACL is not successful.

As a result of its decision in 1985, the Commonwealth owns and has preserved 1700ha of land for SWA at Badgery’s Creek. Given its significance, and the fact that there is no realistic alternative, this should be regarded as a national asset beyond the narrow view of any political party or vested interest.

In its new Master Plan3, SACL is on record as supporting the need for a second airport site to start operating, “....at the appropriate time.” This suggests that the real matter at issue is one of timing, i.e. not if, but when. It is natural for SACL to want to maximise value at KSA, but there comes a time when the national interest must also be taken into account in the company’s forward business plans. In time, SWA would become a valued partner with KSA.

A good deal of work has already been done on SWA at Badgery’s Creek, including a Draft Environmental Impact Statement4 (EIS) and extensive noise studies. Much is known about how the airport could be developed so as to have the minimum possible impact on local communities. Advances in engine technology have made modern RPT aircraft 75 per cent quieter at the airport boundary than 40 years ago5. Construction and airport operation would undoubtedly create many jobs and economic development in Western Sydney6.

The recent Wilton Study7 stated that a modest type three airport (single runway plus terminal and services, all market segments) could be constructed at Badgery’s Creek for $2.4 billion (2012 dollars). Aviation in Australia is a Federal matter, but of course the cooperation of the State Government would be needed to guarantee the fast rail and road access required.

Despite the best efforts of previous and current operators, KSA is running up against its inherent limitations. Put simply, at 907ha total land area, it is just too small – it is in fact the smallest major capital city airport in the developed world. It has no back-up airport, and no feasible way to expand. The decision of the Hawke Government 28 years ago that Badgery’s Creek was the most suitable site for Sydney West Airport (SWA) has been marred ever since by prevarication and political timidity. As a result, Australia’s main international aviation gateway faces the prospect of more congestion, costly delays to passengers and freight, and loss of business contribution to the state and national economy. All of this has been well documented1, and even though another term of Federal parliament has ended (August 2013), we still see no final commitment to SWA at Badgery’s Creek. It is not even listed as a priority action by Infrastructure Australia or Infrastructure NSW. For an island continent heavily dependent on trade with the rest of the world, this should be ringing alarm bells in many quarters. The simple fact is that if it is too hard to come to Sydney, airlines and money will go elsewhere. As was noted during a recent visit to Australia by ex-Mayor of New York, Mr Rudi Giuliani, “Sydney’s reluctance to build a second airport is silly. All great cities of the world need more than one point of access. The economic benefits of a new airport far outweigh the initial financial outlay.”2

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In summary, the long procrastination must come to an end. The recently-formed Western Sydney Airport Alliance of business, unions, civic leaders, and community organisations, must now become a strong voice to press the Commonwealth to:

There are many examples around the world of positive primary/secondary airport such as Washington Dulles Airport / Reagan National Airport

• make an early (low-cost) start to secure the site and begin visible preparatory earthworks, • commission a full re-examination of the 1997 Draft EIS on the site, • bring all information up to date and establish baseline data, • re-visit the early plans and operating rules to mitigate noise and hold discussions with the affected communities, • re-examine potential runway, taxiway, apron layouts, and service provision including fuel supply, • make firm commitments to fast road and rail connections in cooperation with the State, • engage with the local community on the design and operation of the airport, and • engage with SACL as appropriate to determine their interest in acquiring a long-term lease of SWA. Expenditure could be spread over a 10 to13 year period, allowing start-up of operations by 2027. Recent studies6 have shown that under reasonable growth assumptions, and given that KSA is very likely to be severely constrained by 2040, SWA could be adding $9.4 billion to Gross Regional Product plus 35,200 direct and indirect jobs to regional FTE employment by that time. Barry Murphy

Joint (Commonwealth/State) Study Report on Aviation Capacity for the Sydney Region, March 2012

The Daily Telegraph, Sydney, August 15, 2013

KSA Preliminary Draft Master Plan 2033, June 2013

Draft Environmental Impact Statement, PPK Environment and Infrastructure, December 1997

International Air Traffic Association (IATA), 2013

Economic Impact of a Western Sydney Airport, NSW Business Chamber, August 2013

Study of Wilton and RAAF Base Richmond for civil aviation operations, May 2013

Consulting Matters What’s happening at Consult Australia

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

VIC POLICY UPDATE

VIC RECENT EVENTS

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 was held early June with the main purpose to improve procurement processes in how designers are engaged to maximise value. The Consult Australia VicRoads Subcommittee is also involved in roundtable discussions to raise any further areas that can be improved between VicRoads and consultants.

Global Challenges of Sustainability – The Critical Decade: At our July event, we were pleased to welcome Professor Peter Guthrie, OBE – Professor of Engineering for Sustainable Development and Head of the Centre for Sustainable Development at the Department of Engineering at Cambridge University. Peter Guthrie also founded RedR International in 1980 after seeing first-hand the need and scope for engineers to apply their skills in humanitarian disasters and emergencies. Attendees of the event were treated to an interactive discussion on today’s global challenges and had the opportunity to ask Professor Guthrie questions on the future of sustainability.

Leader of the Opposition: The VIC Division held a successful meeting with Leader of the Opposition of Victoria, Daniel Andrews to discuss infrastructure projects and, in particular funding options for these projects. The types of projects they are focusing on at the moment are grade separations and outer metropolitan arterial roads.

Are you Managing the Risk in Your Practice? Bovill Risk & Insurance Consultants (BRIC) Managing Director, Chris Bovill presented at our event on Wednesday, 7 August. Chris highlighted the ins and outs of Professional Indemnity (PI) insurance and spoke about managing professional risk and how these fit together. BRIC is a broker on Consult Australia PI Pathway and recommended by Engineers Australia and the Australian Institute of Building Surveyors.

Political engagement: The VIC 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. The development of 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 various taskforces put in place to find workable solutions.

3 September luncheon: To continue progressing conversations around transport form and to raise awareness of the issue, Consult Australia teamed up with the Transport Reform Network (TRN) to host a luncheon with Infrastructure Australia Chairman, Sir Rod Eddington. Also at the event, the event MC and Consult Australia’s CEO, Megan Motto was joined by Infrastructure Roundtable member Joe Langley of SKM to participate in a panel discussion on value capture. Over 200 people attended this fantastic event, which received extensive media coverage.

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VIC OTHER NEWS Promoting value capture with SKM: Following our ongoing work and advocacy supporting Value Capture (included as a key recommendation in Transporting Australia’s Future and Tomorrow’s Cities Today and progressed through our state advocacy) we were pleased to work collaboratively with SKM and Joe Langley to jointly publish a detailed thought leadership paper considering further the opportunities and challenges to advancing value capture mechanisms to support infrastructure delivery across Australia. The paper was launched on 3 September and is available to download from the Consult Australia website. Bridge building competition: Consult Australia’s VIC Division sponsored third prize for the Aurecon Bridge Building Competition again this year. It was amazing to see the creativity of the bridge designs and the enthusiasm of all students involved. A big thank you to our FutureNet Committee Member, Eloise Sargent (AECOM) who was involved in the judging of the competition!

TAS RECENT EVENT Professional Indemnity (PI) insurance: On 16 July the TAS Division held a PI insurance event, with guest speakers from PI Pathway broker, Planned Professional Risk Services, Hayley Landers and Cos Cirocco. Claim examples and risk solutions were discussed in an interactive workshop with members from Tasmania.

TAS UPCOMING EVENTS The Tasmanian Division encourages members to put forward suggestions around which ministers they would like to meet with and also any local issues or initiatives that Consult Australia can be more actively involved in. Please forward your suggestions to zeina@consultaustralia.com.au

TAS OTHER NEWS Are you interested in joining the Consult Australia Tasmanian Division committee? Send your expression of interest to zeina@consultaustralia.com.au. We would love to have you on board! NATIONAL STRATEGIC PARTNER:

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

NSW RECENT EVENTS

NSW Government Planning System White Paper: The NSW Division of Consult Australia responded to the NSW Government Planning System White Paper with the help of a planning task group made up of individuals from member firms. The task group met with representatives from the Department of Planning & Infrastructure to discuss the new planning system in detail prior to the preparation of a submission. The submission can be viewed via the Consult Australia website. NSW local government reform: The Local Government Review Panel has been doing a lot of work in relation to the amalgamation of local councils. Consult Australia has supported this reform for some time, having initially canvassed the issue in 2009 with the release of Sydney Towards Tomorrow. The Division recently wrote to the Review Panel in support of their work to deliver a better, and stronger local government sector in New South Wales.

Smart Cities: The Smart Cities Series has been running successfully since the launch in April this year. To date we have held sessions on the Digital Economy; Transport and Logistics; and Energy, Water and Waste. We are pleased to be receiving very positive feedback on the session. Ian Hayles from Opus says, “I wish to compliment Consult Australia on the Smart Cities Series. I have attended all so far and have found them to be very worthwhile, informative and ground breaking. The speakers have been first rate and overviews of major issues and challenges confronting Australia and the political and infrastructure sectors, in particular, have been addressed. Thank you for providing this series.” The remaining sessions include: Health and Wellbeing, and the Knowledge Economy. Please contact the NSW Division for more information. Innovate, Internationalise or Die: To survive and thrive in the current economic climate, you need to throw the net wider and look to overseas markets to grow your client base. On Wednesday, 4 September guests were joined by event partners; Export Council of Australia and KPMG to explore this issue. High Speed Rail breakfast event: On Wednesday, 11 September two of the most passionate speakers we know explored the subject of high speed rail – what would it look like in a perfect world? What if there were no constraints? Guests thoroughly enjoyed hearing from Joe Langley (SKM) and Kym Lennox (The Tipping Point Institute) who debated this topical subject.

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NSW UPCOMING EVENTS Lunch with Roads & Maritime Services (RMS) CEO, Peter Duncan, Wednesday, 3 October: This special lunch event will be restricted to only 20 members. Information will be distributed soon. Contact the NSW Division for more information on any of our events on (02) 9966 4966 or nsw@consultaustralia.com.au.

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ACT POLICY UPDATE ACT political engagement: We have been pleased to hold discussions with Head of Service and DirectorGeneral, Chief Minister and Treasury Directorate, Andrew Cappie-Wood and Commerce and Works Directorate Director-General, Megan Smithies introducing Consult Australia, our advocacy priorities and opportunities to work together in the ACT. These meetings have led to a Boardroom Lunch planned for Tuesday, 24 September also including Under Treasurer, Chief Minister and Treasury Directorate, David Nicol. Discussions with Deputy Chief Minister, Andrew Barr are ongoing with a Boardroom lunch to be scheduled in the months ahead.

ACT RECENT EVENTS BRONZE SPONSOR:

Safe design course: The ACT Division ran a very successful Safe Design course on Thursday, 10 July 2013. Exclusive Boardroom lunch with ACT Government: The ACT Division recently held an exclusive boardroom lunch with high level representatives from the ACT Government, including:

•

Andrew Cappie-Wood (Head of Service and DirectorGeneral, Chief Minister and Treasury Directorate),

•

David Nicol (Under Treasurer, Chief Minister and Treasury Directorate),

•

Megan Smithies (Director-General, Commerce and Works Directorate).

An update from this meeting will be provided in the next edition of Consulting Matters.

ACT UPCOMING EVENTS The ACT Division is currently planning a number of exciting events for the coming months. Mark your diaries for the following dates and be sure to keep an eye on the Consult Australia website for further information. 25 October: Boardroom lunch with ACT Light Rail 14 November: Boardroom lunch with Territory and Municipal Services (TAMS)

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QLD POLICY UPDATE Stacey Rawlings State Manager – QLD Phone: (07) 3020 3403 Address: Level 2, 143 Coronatin Drive Milton QLD 4064 Email: stacey@consultaustralia.com.au

Department of Transport and Main Roads (TMR): Consult Australia’s QLD Division met with senior executives of TMR on 5 August 2013. The discussions covered a long list of topics including: staff turnover, consultant performance, design standards review, Independent Catalyst for Differential Cost Savings (ICDCS) Project, changes to prequalification, changes to QBS selection, professional indemnity insurance, innovation, re-skilling design capability, and contract terms. TMR confirmed that they are moving to a company based pre-qualification system. It was agreed that there may be some practical issues in applying the new approach and TMR will hold a half day workshop with a small group of Consult Australia members to work through the proposed changes to both the pre-qualification system and the selection processes. A date will be set for early September. The QLD Division has a dedicated email listing for those interested in staying informed of our regular engagement with TMR. Simply contact QLD State Manager, Stacey Rawlings to be included on this list. Department of Housing and Public Works (HPW): A review is currently being conducted of the general goods and services terms and conditions contract (Version 4 – July 2012). There are many clauses that are not acceptable to our members and we have commenced a full review of the contract to provide feedback to the Department. Input has been provided by a number of firms and we will be using the comments provided to engage across all departments who are utilising this contract for engaging our member firms’ services. Queensland Health: As this edition goes to print, senior executives of Consult Australia QLD Division will be meeting with Minister for Health, Lawrence Springborg MP. Queensland Health is a major purchaser of our member firms’ professional services. It is important that we meet with all major purchasing departments to help us develop a better understanding of the Government’s objectives and to provide them with a better appreciation of the challenges facing our members and how we can work together to deliver better services for Queensland.

QLD RECENT EVENTS Meet the Client – Seqwater: On Thursday, 27 June we heard from senior executives of Seqwater who provided updates on the role and operation of Seqwater, the people, vision and strategy, and Seqwater’s project pipeline; looking at investment in infrastructure over the next five years and future procurement strategies. There were opportunities before and after the presentation for members to network with Seqwater senior executives including: Chief Financial Officer, Peter Scott; General Manager Water Supply Strategy and Policy, Jim Pruss; and representatives from legal and procurement. Offshoring of services: Our Wednesday, 10 July breakfast speakers provided three different insights into the future globalisation of service delivery. To access copies of the presentations please visit the Consult Australia website or contact QLD State Manager, Stacey Rawlings. The Global Challenge of Sustainability: We were pleased to host Professor Peter Guthrie OBE as guest speaker for our Tuesday, 30 July breakfast event. Peter’s presentation provided insights into the challenges faced by society today which are unparalleled in scale and complexity. The questions drawn from the audience provided opportunity for further discussions and Peter highlighted the need for adaptability, resilience and flexibility. Better business series: The third of the 2013 series was held on Wednesday, 7 August titled, Growth Opportunities in Challenging Times and how to achieve Successful Change in Consulting Practices.

QLD UPCOMING EVENTS Mark your calendar for these upcoming events and check the website for details. 12 September: Breakfast with Director General, Transport and Main Roads, Neil Scales. 2 October Better Business Series Risk Session: As this event we will welcome Darren Pavic (BRIC) who will discuss the ins and outs of Professional Indemnity insurance, managing your professional risk, and how these fit together; and Matthew Van Dyke (St George Bank) who will discuss business succession planning.

What’s happening at Consult Australia Consulting Matters

QLD OTHER NEWS Queensland industry critical survey results: Consult Australia’s QLD Division undertook a survey in June and July 2013 of member employee numbers, industry confidence and forward outlook. The results show that a large majority of firms have reduced in size by an average of 30 per cent in the last 12 months, mostly through redundancies. It foreshadows a much greater ‘whole of building and construction industry’ loss of permanent and temporary employees from Queensland. According to the survey results, our industry is “in worse shape now” than 12 months ago, and a majority of our members expect to make further redundancies in 2013-14. Over the next 12 months we will continue to meet with government to ensure that there is a broad understanding of the impacts this will have on the long-term ability to effectively and efficiently deliver projects in Queensland.

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ProjeCt ManageMent CPD Are you delivering your projects on-time and within the budget? Attend this course to learn about: • Management models and processes • Management life cycle • Project organisation • Scope management • Time management • Cost management • Quality management • Communications management • Risk & integration management

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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SA POLICY UPDATE

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

Liability and contracts: Consult Australia’s Legal Policy Advisor Robin Schuck and SA State Manager, Jan Irvine met with the Industry Participation Advocate Ian Nightingale on Tuesday, 23 July to discuss procurement procedures and contractual issues— specifically onerous terms and conditions in standard contracting arrangements. Following the successful meeting which included discussions on the handling of risk and liability in government contracts, Consult Australia has been invited to participate in an informal expert group assisting the Office of the Industry Advocate in developing recommendations about reforms to government procurement processes and practices in South Australia. We are also pleased to announce that Consult Australia’s SA Division Executive Committee member, James Trezona (Aurecon) has been appointed to the Building and Construction Industry Advisory Panel to provide advice on professional services specific issues. Congratulations James!

SA RECENT EVENTS Boardroom lunch series: The boardroom lunch series continued with SA Division members meeting with Australia China Business Council SA President, Sean Kennihan on Tuesday, 30 July for a briefing on relevant business developments and practices in China; with emphasis on paramount tips when doing business in China. The presentation was followed by a discussion on available opportunities for South Australian and Chinese business to create lasting and highly valuable commercial partnerships. Global Challenge of Sustainability: The SA Division Annual Lunch was held on Thursday, 1 August and looked at the global challenge of sustainability and the energy alternatives. Guest speaker Director of the Centre for Sustainable Development at Cambridge University UK, Professor Peter Guthrie explored the theme and attendees enjoyed a relaxed networking lunch prior to Peter’s presentation.

Industry critical meeting with the Premier’s office: On Tuesday, 30 July the SA Division met with the Premier’s Office. They discussed the critical state that the consulting industry in SA is currently in, and the significant concerns being expressed by member firms relating to an apparent lack of a sustainable pipeline of project opportunities going forward and the impact of this on their business and on the industry as a whole. Results of the SA Division’s July industry survey of member firms were presented, along with a number of constructive suggestions as to how our industry can also assist Government, given the difficult economic climate we currently operate within. The meeting concluded with the Premier’s Office acknowledging the current situation and indicating a positive mentality towards exploring and discussing possible ways with which to move forward. We anticipate further meetings with both the Industry Participation Advocate and the Chief Executive of the Department of Planning, Transport and Infrastructure to be held as soon as possible. As this is an issue of major concern for our members, Consult Australia continues to push this agenda. Self-education tax changes: On Thursday, 25 July SA State Manager, Jan Irvine attended a small workshop to express the views of Consult Australia regarding self-education tax changes outlined in the Federal Budget. Shadow Minister for Education, The Hon Christopher Pyne MP met with the representatives of 16 members of the Scrap the Cap Alliance who called on the Rudd Government to repeal the $2,000 cap on tax deductibility of self-education expenses. As one of the few business bodies actively opposing the changes, we recognise the potential implications for firms who will have to fill the gap created by this policy with their own training, or will suffer the drop in skills associated with less trained, educated staff. Latest news is the Rudd Government has announced a deferral of the introduction of the cap, delaying the proposal until May 2014. It is a fantastic example of the potential force of collective lobbying action, and is a great win for our firms.

Infrastructure SA – Funding the Pipeline: With infrastructure a topic high on everyone’s list, our August industry breakfast enjoyed a good crowd joining keynote speakers: Infrastructure Partnerships Australia Chief Executive, Brendan Lyon; Department of Planning, Transport and Infrastructure Chief Executive, Rod Hook; and Statewide Super Head of Investments, Con Michalakis. With the future prosperity and progressive development of South Australia’s economic productivity and standards of living depending on an ambitious, achievable and forward thinking infrastructure plan, our speakers had much to discuss. Attendees reflected on the current political and business environment, the infrastructure deficit and those practical actions that can be taken now to fund and deliver a robust pipeline of projects for South Australia.

What’s happening at Consult Australia Consulting Matters

NT POLICY UPDATES

SA UPCOMING EVENTS Event calendar: Topics for our upcoming events will include the Integrated Transport and Land Use Strategy (ITLUS) and an economic update. We also look forward to meeting with government to discuss the future of the state following the September Federal Election.

SA OTHER NEWS The SA Division acknowledges the fantastic support and generosity of URS in providing an office for Consult Australia in South Australia. NATIONAL STRATEGIC PARTNER:

SA DIVISION GOLD SPONSORS:

Member only breakfast series: On Tuesday, 30 July members met with Minister for Infrastructure, the Hon Peter Styles MLA where discussions focussed on procurement processes and methods. Minister Styles indicated ongoing meetings between the NT Department of Infrastructure (DoI) and Consult Australia would be welcomed to obtain an outcome beneficial to both industry and government. We will be in regular contact with the Minister’s office and have an agenda going forward to meet with key stakeholders within the DoI. Professional Indemnity (PI) insurance: The NT Division joined with Engineers Australia to hold a free session on Thursday, 13 June to explain how PI insurance operates and the implications for consultants in the built and natural environment. Strategies were outlined to minimise consultant’s expenditure on PI insurance while at the same time reducing risk exposure. Additional issues discussed included:

• • • •

What is risk management and how important is it? How do PI insurance and risk management fit together? Employer/employee liability, and Protecting your exposure when you retire.

NT OTHER NEWS building great consultants

SA DIVISION SILVER SPONSORS:

FutureNet moves to the Northern Territory: The NT Division is taking Consult Australia’s FutureNet initiative to the Top End, with Darwin being the next location. Go to page 42 of this edition of Consulting Matters to see how you can help make this initiative a success!

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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): Following our recent success with the Minister for Finance ordering the Office of Building Management and Works (BMW) to not contract out of proportionate liability (see page 10) together with Built Environment Design Professionals (BEDP), Consult Australia is continuing to work towards the introduction of a cap on liability. To progress this, we recently held a workshop with BMW, including the State Solicitor’s Office and Risk Cover with a view to establishing a fair and reasonable cap. 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.

WA UPCOMING EVENTS Consult Australia and the Association of Consulting Architects present a joint luncheon with Jeff Speck: On Tuesday, 15 October the WA Division will be hosting a joint luncheon with Jeff Speck. Jeff Speck is a city planner and architectural designer who—through writing, lectures, and built work—advocates internationally for smart growth and sustainable design. As Director of Design at the National Endowment for the Arts from 2003 through 2007, he oversaw the Mayors’ Institute on City Design and created the Governors’ Institute on Community Design, a federal program that helps state governors fight suburban sprawl. Prior to joining the Endowment, Speck spent ten years as Director of Town Planning at Duany Plater-Zyberk and Co., a leading practitioner of the New Urbanism, where he led or managed more than 40 of the firm’s projects. Register today to ensure you don’t miss out!

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WA RECENT EVENTS Tomorrow’s workforce: On Friday, 20 September the WA Division welcomed Hays Specialist Recruitment Director—Public Sector, Kathy Kostyrko who spoke about three issues that will shape the jobs market of tomorrow and the way in which people look for and secure their next job: globalisation, the impact of social networking, and working with five generations in the workforce. Kathy presented Hays’ findings on how organisations can leverage emerging trends to successfully attract and secure the top talent.

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PLATINUM SPONSORS:

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SYDNEY

FUTURENET RECENT EVENTS Writing Winning Proposals workshop: We all know that crucial to winning any job is the presentation of a strong proposal that addresses the client’s needs and criteria for evaluation. This Writing Winning Proposals workshop was held on Thursday, 21 August at The Grace Hotel, Sydney. Facilitated by Chris Beer, who led Price Waterhouse Cooper’s proposal services in Australia over a number of years, winning bids worth more than $1 billion dollars – this was a highly interactive session with attendees providing great feedback.

SYDNEY FUTURENET UPCOMING EVENTS Alumni master class – Advanced Leadership: Scheduled for Friday, 20 September-Saturday, 21 September this program is an extension course for participants who have attended the FutureNet Business Leaders Course. Join Dr Jo Rhodes from Macquarie University and Dr Paul Walsh from University of NSW as they take you through an intensive program focused on developing strategies to compete and innovate effectively for future success. Numbers are limited. For more information contact the NSW Division of Consult Australia.

NEWCASTLE

FUTURENET RECENT EVENTS Career Development in an Uncertain Market: Career development and progress is an important consideration for all young professionals. Facilitated by Josh Cullinan, reporter for Maitland Mercury and reporter and producer for the ABC, the panel included Chloe French from URS, Dan Barrow from McCullough Robertson and Joel Skelton from Skelcon. The panel provided numerous ideas for attendees to approach professional development, including inspiring hints and tips.

SYDNEY FUTURENET BUSINESS LEADERS COURSE Business Leaders 2013: The FutureNet Business Leaders course is now more than half way through this year’s program. Participants have received their project and will continue work with their mentors until the end of November. The 2013 Awards will take place on Thursday, 28 November. Good luck to all 2013 participants! Business Leaders 2014: Do you have young professionals you would like to enter the 2014 course? Apply now! Consult the NSW Division for more information.

SYDNEY FUTURENET BRONZE SPONSOR:

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Keep an eye out on the FutureNet website for upcoming Newcastle events, or contact the NSW Division to find out more.

NEWCASTLE FUTURENET SPONSOR:

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BRISBANE

BRISBANE FUTURENET RECENT EVENTS

FUTURENET NEWS Committee news: With two longer term members departing due to maternity and relocation we are delighted to welcome Casey Magee (GHD) and Michael Lawlor (ThomsonAdsett) to the Committee. The FutureNet committees are all working hard to raise the profile of FutureNet and highlight the importance of networking at the early stages of a professional career, and are willing to attend firm offices to provide a brief presentation on the benefits of your firm getting involved. Please contact the QLD Division to arrange a presentation.

BRISBANE FUTURENET UPCOMING EVENTS 24 October – The Big Debate: Stay tuned for more details!

11 July – Annual trivia: Just under 200 young professionals who work in the built environment gathered in the Grand Ballroom of the Hilton in Brisbane to put their knowledge of facts from the past, present and future to the test. The night’s theme was ‘Back to the FutureNet—Increasing our professional relevance by learning from the past’ and three guest speakers shared their experiences and views on the progression of the industry and predictions for the future. Me, Myself and I: It’s all about Personal Branding: Professionals at all levels in an organisation must understand what it takes to create and present a positive professional image. Particularly in today’s competitive market, having the skills to project an optimal professional brand is critical to your success. The 29 August event provided attendees with tips on the personal branding skills and tools required to advance their career. Tips were provided on how to manage both their personal and firm reputation, build client loyalty, connect with colleagues and build a stronger network.

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BRISBANE FUTURENET SILVER SPONSORS:

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TOWNSVILLE FUTURENET NEWS

Committee news: The new Townsville Committee has been confirmed and will be chaired by Samantha Hollis from Tracey Brunstrom and Hammond (TBH Group). Samantha is joined on the Committee by Mark Carter, Angela DahnHarvey and Sabella Fuss (all from RPS Group) along with Bill Hutton (FortisEm), Gerard Meade (MacDonnells Law), Courtney Douglas (SKM) and Dion Savage (AECOM). We are looking forward to working towards another successful branch of FutureNet.

TOWNSVILLE FUTURENET UPCOMING EVENTS

TOWNSVILLE FUTURENET RECENT EVENTS Launch event: With a lovely sunset backdrop FutureNet Townsville launched in style at the Museum of Tropical Queensland on Friday, 26 July. The event brought together almost 50 of the future leaders in Townsville. We were delighted to have Phillipa Maddocks from Townsville City Council provide a brief presentation on how future development in Townsville will be guided by the new City Plan, which will soon be out for public consultation. Phillipa is excited about getting more of Townsville’s future leaders involved in this new initiative. This event was proudly sponsored by gold sponsors: TBH Group and MacDonnells Law with support from bronze sponsors: GHD, Golder Associates, RPS and FortisEM.

Keep an eye out on the website for upcoming events in this new Division of FutureNet!

To enquire about sponsoring future Townsville events please contact QLD State Manager, Stacey Rawlings.

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

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CANBERRA

FUTURENET NEWS

CANBERRA FUTURENET RECENT EVENTS

ACT FutureNet Committee: After five years on the Committee and two years as Chair, Joel Stevenson (Brown Consulting) has stepped down to pursue other opportunities within Consult Australia, being replaced by Kieran Walsh (Hays Engineering), as the new Chair. Also stepping down from the Committee to pursue other opportunities within Consult Australia is Callum Heinrich (GHD).

Peter Black - Succeed at Success: To kick off the new financial year, the ACT FutureNet hosted Peter Black, a former National Operations Director of PWC turned Business and Executive Coach. Peter provided an interactive and informative session to get attendees thinking about their personal brand, worth, development and key tips to ensure continued career success.

The ACT FutureNet Committee would like to thank Joel and Callum for their involvement in the ACT division of FutureNet over recent years, and wish them all the best in their future endeavours.

Having delivered sessions to other FutureNet divisions before, Peter’s informative insights into the workings and minds of senior management gave participants the chance to have an objective look at their own career and areas they can continue to develop—from social media presence and personal branding through to networking etiquette in a changing environment.

CANBERRA FUTURENET UPCOMING EVENTS

Peter’s approach to development and self worth ensured each attendee walked away from the session with something new to add to and implement in their career.

The ACT FutureNet Committee is planning an exciting calendar of events for the rest of 2013. Stay tuned on the FutureNet website for further information.

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ADELAIDE

FUTURENET NEWS Committee news: FutureNet SA farewelled SA Chair, Jo O’Brien (Tonkin Consulting), due to her relocation to the Tonkin Consulting Darwin Office. Consult Australia and FutureNet thank Jo for her hard work, fabulous ideas and enthusiastic leadership of the group and wish her well in her new adventure. Jarvis Anderson (Aurecon) stepped up to become SA Chair with Alex Czura (SA Water) as Vice Chair. The committee has seen a few personnel changes over the past few months and are ready for the challenge to find new events to ensure we stay at the top of our game and continue our popular, interesting offerings.

ADELAIDE FUTURENET UPCOMING EVENTS Keep an eye out on the website for details of our September Bingo Speed Networking event, and our November Political Debate.

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ADELAIDE FUTURENET RECENT EVENTS June Engineers vs. Architects debate: The June Engineers vs. Architects debate enjoyed a large attendance with over 145 young professionals drawn to the argument ‘Should architects, rather than engineers, be the lead consultant on construction projects?’ Guests enjoyed a leisurely Thursday night networking drink, and filed into the Horace Lamb Lecture Theatre at the Adelaide University to witness the battle. A heated and highly charged discussion with some of Adelaide’s top professionals from the architecture and engineering fields faced off in the debate, which was hosted by local TV personality, Tim Noonan and judged with integrity and conscientiousness by our judges. The engineer’s team emerged victors and earned a charitable donation for their profession’s charity - Engineers without Borders. The architects enthusiastically issued a challenge for a re-match in 2014. This popular event may well become an annual highlight! Networking event: Adelaide’s August cocktail networking event invited participants to hear from SA Water Asset Managers as they presented on SA Water’s overall strategic outlook with a focus on condition assessment and prevention of burst water mains. Interactive displays gave guests an appreciation of the failure models and history of the vast range of SA Water assets across South Australia while networking and enjoying some fine wine and canapés.

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DARWIN FUTURENET NEWS FutureNet moves to the Northern Territory: The NT Division is taking Consult Australia’s FutureNet initiative to the Top End, with Darwin being the next location. FutureNet is a proud initiative of Consult Australia, is free to join, and open to all young or emerging professionals associated with the built environment. Since 2004, FutureNet has been helping young professionals who work in the built and natural environment develop the valuable networks and non-technical skills that are essential to success in today’s competitive marketplace. Consult Australia first launched FutureNet in Perth and the initiative now has chapters in Newcastle, Melbourne, Brisbane, Adelaide, Townsville, Canberra and Sydney. We are in the planning stages and we are calling on you for assistance. What do we want?

•T o create a passionate small committee of young professionals, who are keen to create stronger networks with their peers and are interested in assisting with planning and running events; and •T o attract an initial core group of sponsors to partner with us on this new initiative. Please assist us by getting the word out to anyone you know in Darwin who may be interested in attending events, joining a committee or sponsoring. Anyone with interest in being involved at any level (attendance, committee, sponsor) should simply email jan@consultaustralia.com.au indicating areas of interest. Members will be advised of further upcoming events via email as they are confirmed. If you are not on the email list to receive correspondence from the NT Division and would like to be, please email NT State Manager Jan Irvine at jan@ consultaustralia.com.au. An engaged industry body has a stronger voice and we encourage you to become involved with Consult Australia.

• To increase our database of contacts in Darwin;

MELBOURNE

FUTURENET RECENT EVENTS National Broadband Network: On 5 June, Melbourne FutureNet held a National Broadband Network (NBN) event. This session was presented by Toby Ryston-Pratt and Caitlin Gill from the NBN Co Legal Team, who provide legal support to the team rolling out the NBN. We heard about the potential 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. How to become Pressure Proof - Accelerating your personal productivity: On 14 August, Bounce Back Resilience Expert, Michael Licenblat discussed how to: •b ecome more productive when working under pressure, change or uncertainty; •b etter manage ‘pressure triggers’ to stay focused and effective; and • i dentify the four keys to becoming ‘better under pressure’ to accelerate your success.

MELBOURNE FUTURENET UPCOMING EVENTS Join us on 9 October for our Future of Energy event. With a high calibre of speakers, this event is not to be missed!

FUTURENET PROFESSIONAL DEVELOPMENT SERIES The FutureNet Professional Development Series is a newly launched program of seminars aimed at emerging consultants in the built and natural environment. The seminars focus on key skills needed for the successful development of consulting careers and are suited to young professionals with three to 10 years experience. We held a very successful first workshop on Thursday, 29 August, with a focus on building the awareness and skills needed to identify and increase the probability of securing new business opportunities. Keep an eye out on the website for information on the next seminar.

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PERTH

FUTURENET RECENT EVENTS

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Social Media and the Trust Economy: In June 2013, FutureNet WA welcomed Socialite Media Managing Director, Tenille Bentley to discuss the digital landscape in Australia, our digital legacy, and how to use social media to further our careers. Social media has fast become an integral part of a young professional’s day to day life and will become increasingly relevant over time—there has never been a better time to start using it to our advantage. Tenille taught attendees that—while Facebook and other forms of social media can be seen as a distraction in the workplace—it can also be a useful tool for collaboration between colleagues as well as for developing a positive brand image.

FutureNet WA end of year luncheon: This year’s FutureNet WA end of year luncheon will take place on Friday, 15 November from 12.15pm-2.30pm with Atlas Iron Non-Executive Chairman, David Flanagan as our guest presenter. Since Flanagan founded Atlas in 2004, the firm has grown from a $9 million exploration company with one employee to a top 100 ASX listed mining company. Flanagan is the Chancellor of Murdoch University, and also participates in industry organisations, not for profit boards and charities, holding director positions at Youth Focus, Giving West, the Australian Mining Hall of Fame and the Australian Institute of Company Directors. Don’t miss hearing from this exciting guest speaker. Contact WA State Manager, Jo Howlett for more information.

Show Me the Money: The fourth event for FutureNet WA was held on Friday, 30 August at Fraser’s Restaurant, Kings Park. HPH Financial Solutions Private Client Adviser, Randall Stout gave a presentation on how to set and achieve financial goals. Attendees were given tips on investment options, superannuation and a list of questions a young professional should be asking when engaging a financial adviser. Young professionals can work pretty hard for their money and this event helped to demonstrate how to make money work a bit harder for young professionals!

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Consulting Matters Features

Effective community engagement with a business case through a shared value approach THE PRINCIPLE OF ‘SHARED VALUE’ INVOLVES CREATING VALUE FOR COMMUNITIES BY ADDRESSING THEIR NEEDS AND CHALLENGES THROUGH THE CREATION OF ECONOMIC CAPITAL. The GPT Group (GPT) recognises the potency of shared value as a strategy to make community engagement more relevant across the business and to investors. Beyond being an owner, developer and active manager of Australian property, the Group engages with the local communities around its assets to foster the social and economic advancement of those areas. GPT has taken this ‘shared value’ approach; showing that business opportunities can be created when genuinely addressing social issues, with initiatives in Wollongong and Melbourne key examples of this successful balance. GPT’s enrichment of the Illawarra region through Wollongong Central Over and above delivering a vibrant new retail destination for the Illawarra with a $200 million expansion of the Wollongong Central shopping centre, GPT has committed to ensuring the significant social and economic advancement of the region. Through this project, the Group is delivering on its commitment to the community

engagement goal ‘to be an active, engaged community leader that champions change to genuinely enrich people’s lives’. So what does this involve? GPT has cultivated a number of long-term partnerships with local businesses and the community including TAFE Illawarra, University of Wollongong, BlueScope Steel, Port Kembla Port Corporation, Wollongong City Council and the NSW Government. Each of these relationships help GPT deliver important social and economic outcomes, including local job creation, and training and development pathways for local youths. These initiatives help the new development create a sense of place and ownership for residents. GPT is also an active member of the Property Council of the Illawarra. Development Manager of Retail & Major Projects, Steven Turner represents GPT on the committee and champions economic and social development in the Illawarra region. In May 2013, GPT supported the Property Council of the Illawarra ‘Shaping Wollongong Ideas-a-

The expanded STREAT café in Melbourne Central, Melbourne VIC. Photo courtesy of The GPT Group

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Highpoint Shopping Centre in Maribyrnong, VIC Photo courtesy of The GPT Group

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Thon’ initiative—a creative think-tank session held to encourage property council members and the public to share ideas for the city’s future direction. Engagement with the community of Melbourne GPT’s engagement with the community through Melbourne Central and the Highpoint redevelopment are key examples of shared value creation for both local residents and GPT’s business. Melbourne Central has become a community hub that enhances the social, cultural and economic life of Melbourne and GPT’s partnership with social enterprise STREAT is a successful example of shared value in the project. STREAT provides much-needed life skills and job training for youth affected by homelessness. Trainees are placed in STREAT’s cafés whilst they undertake study in a Certificate I and II in Hospitality from the William Angliss Institute. A STREAT coffee cart was first installed in Melbourne Central in 2010, and in 2013 the development was proud to host the launch of the new full-service STREAT café. GPT contributed $40,000 to the transformation from the original coffee cart into the café, which now serves coffee and food to more than 2,000 customers per week. 1,350 copies of the new STREAT cookbook have been sold since the launch of the STREAT café at Melbourne Central in May, which has seen $45,000 of funding going directly back into the program aiding STREAT’s fight against homelessness and enabling more young people to turn their lives around. As well as helping disadvantaged young people of Melbourne, GPT has secured a successful, long-term tenant in the STREAT café. This initiative has continued to build the connection between GPT and the Melbourne community. In Melbourne’s West, GPT recently completed the expansion of the Highpoint Shopping Centre—a centre designed in response to feedback from local residents. Highpoint is co-owned by GPT Wholesale Shopping Centre Fund, Highpoint Property Group and The GPT Group. The local community was asked what they wanted from the development in terms of both shops, and overall experience. In response, GPT through Highpoint has delivered an impressive offer of international retailers to west Melbourne, being the only shopping centre in Australia to have secured both Topshop and Zara; and Apple and Samsung. Additional community initiatives in the development include new open spaces for the public to enjoy and the creation of thousands of jobs. Approximately 4,300 jobs were created during construction and about 2,000 new retail positions upon completion. GPT has expressed a commitment to continue seeking business opportunities that have long-term social benefits and strategically deliver economic returns. As GPT’s engagement in Wollongong and Melbourne has demonstrated, the shared value principle presents the opportunity to foster social improvement that results in job creation, trusted partnerships with local groups and ultimately loyal customers. Sue Wiblin Community Engagement Manager The GPT Group

Highpoint Shopping Centre in Maribyrnong, VIC Photo courtesy of The GPT Group

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2013 Awards for Excellence

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Entertainment: Jersey to Motown

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Friday, 6 December 2013 Hilton on the Park, Melbourne 6:30pm til late Black tie

BOOK NOW! To book your ticket or table today contact National Events Manager, Alexandra Hopper on (02) 9922 4711 or via email at events@consultaustralia.com.au Strategic Partner:

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Consulting Matters Features

Cracking the media code WHEN PROFESSIONALS IN THE CONSULTING INDUSTRY CONSIDER THEIR STAKEHOLDERS, CLIENTS, COLLEAGUES AND STAFF ARE USUALLY THE FIRST THAT SPRING TO MIND. HOWEVER THEY OFTEN OVERLOOK OR DISMISS A VERY POWERFUL POTENTIAL ALLY – THE MEDIA. YOU MIGHT BE SURPRISED BY THE POSITIVE COVERAGE YOU CAN ACHIEVE WITH A LITTLE STRATEGIC PLANNING. Ask some people whether they’d rather do an interview with a journalist or undergo root canal and they’ll pick the dentist every time. What these people fail to realise is that an interview is an opportunity, both when there’s good news to tell and when there’s bad, with the latter offering the chance to change people’s perceptions, to present your organisation as one that takes matters seriously and fixes problems when they arise. It’s also important to recognise that journalists are very predictable creatures. I say that as someone who worked as one for 16 years both here and in London, for national and commercial broadcasters. We seek the same key ingredients in every story, we don’t reinvent the wheel. Journalism is very formulaic; it’s just the issues and players that change. We want people who can tell us stories, can pull back the curtain on their projects, their industry and show us how it all works. Don’t underestimate how much we love a ‘boffin’’—provided of course, that that boffin can explain their subject matter without resorting to jargon, acronyms or, god forbid, ‘corporate speak’. When you use the term ‘amenities’, a journalist thinks ‘public toilets’, don’t assume we know who your ‘stakeholders’ are (tell us instead) and don’t get me started on terms like ‘building envelope’, ‘masterplanned’ or ‘built form’. But, I hear you cry, that’s the way we talk in my industry. It may be but it won’t have any cut through with a mainstream journalist or their audience. Sure, if you’re being interviewed for an industry journal, you might get away with a little more jargon but consider how tired the journalist must be hearing interviewees use the same terms over and over.

Just last week I was media training someone who works in HR. It was her role to spruik the advantages of working for her company. She must have used the term ‘employee engagement’ half a dozen times during the interview. Now if you were the journalist, would you rather hear ‘employee engagement’ or ‘we want people to wake up in the morning and want to come to work’ or ‘we’ve got people who love their job so much they’ve worked for us for more than 20 years’? Which do you find more compelling? If you’re wondering what does get the media excited, look no further than the numerous stories written about the signing of the contract for the tunnel boring machines that’ll be used to create the North West Rail Link in Sydney. The machines were described as 140m long or ‘double the length of an A380’, they weigh 1,000 tonnes or the equivalent of ‘6,000 Commodores’ and will churn through ‘about 1,000 Olympic swimming pools of crushed rock’. Now there’s some visual language for you. TV networks and online media were provided with computer graphics to help them tell the story about the tunnel boring machines. The commuter paper mX had some fun, giving it the headline ‘The most boring job in town’. While it’s an extremely technical and complex project, it was explained in ways that Joe Public could understand and appreciate. So what are you and your company doing that might interest the media? Journalists look for things that will directly affect their audience (for better or for worse), things that are novel or unusual (think the tunnel boring machines), things that are new, a first or constitute the biggest of their kind,

things that are happening locally or being done by a prominent company/organisation. You’ll then need a well-written media release that highlights the newsworthiness and explains the issue succinctly. Don’t make the mistake though of stopping there. You’ll need an articulate spokesperson who’s primed and ready for interviews. While some print and online publications may be willing to do a ‘cut and paste’ of your media release, others will want to interview your spokesperson – radio needs audio grabs and TV needs a talking head. If you’re struggling with any of the above, bring in an expert. I often tell my clients that while there’s no question journalism requires very particular skills, it’s not brain surgery and, once you understand the formulae, it becomes a lot easier to give the media what it wants. Jayne-Maree Sedgman Principal Media Savvy www.mediasavvy.net.au

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The secret to stakeholder engagement in tough times The secret to stakeholder engagement in tough times is simple; ask your stakeholders what they want. What’s crazy about this strategy is that they might just tell you the answer. What’s even crazier is that few consulting firms ever reach out to their stakeholders to find out what matters most to them. In business-to-business companies, particularly in professional services, it’s not uncommon for a client to be worth millions of dollars in fees, yet it is somewhat common that firms don’t take the time to properly find out whether their clients are happy with the service they are receiving. A few hours’ research can mean the difference between winning and losing millions of dollars of business. So why is market research such a powerful tool for stakeholder engagement?

Australians don’t complain – they just go elsewhere

Don’t spend a cent on marketing until you know what your clients want

Aussies don’t like dobbing in their mates to their bosses. Many people feel uncomfortable complaining about a business associate— especially when they are being asked for feedback from someone within the business. In most cases, they’ll just go elsewhere and your company will never know why. This is an expensive outcome when your client is worth hundreds of thousands, if not millions, of dollars. An objective outsider can often gain the vital information that those in your company are unlikely to hear.

Rather than trying to second guess what marketing strategies will most appeal to your clients—ask them. How do they like to receive their communication? What are the growth areas in their business? Where do they see the opportunities for collaboration? When asked in the right way, your clients will tell you these answers. From there, a highly-customised, clever and creative marketing and business strategy can be developed to meet these needs and opportunities. As one interview subject said to me recently, ‘the gold will be found in the creativity, not in the engine room.’

A commitment to ongoing dialogue underpins all good stakeholder engagement. Traditional marketing relies on ‘pushing out’ a message in the hope that it will influence stakeholder opinion. Smart marketing and communication campaigns that are underpinned by a drive for effective stakeholder engagement give customers the chance to influence company priorities and can improve decision-making and accountability.

Bad is good

CEOs and company directors are often worried that market research will uncover some bad news. “What if our clients say bad things about us? Do we really want to know?” Yes, you do! Ironically, the negative interviews are the most powerful. When someone is feeling unhappy with your company, and yet they are willing to spend time to share what’s gone wrong, it means they want something to be done; it means the problems can be fixed. If your company chooses to listen to this negative feedback, and makes a concerted effort to address the issues, the unhappy client tends to transform into a loyal, engaged one. They know from experience, that it’s okay to speak up when they are unhappy, because their problems will be resolved. They become an evangelist for your business.

In a tough market, winning new business is costly—both in time and money—plus the odds of winning work are lower, as more people compete for fewer projects. The bottom line is simple. The bulk of new work comes from existing clients and referrals—and the key to securing loyal clients is to know them inside out. Nicole Smith Director Tin Shed Marketing

Your people are the brand

We’ve heard this one before, but do your clients actually enjoy working with your people? In any type of professional services business, the key client relationships are held not with the CEO, but with the people who deal with the clients on a daily basis. Your staff might be brilliant architects, talented engineers or savvy project managers, but those core skills don’t necessarily mean that they are great communicators, negotiators or marketers. These staff members can often unwittingly upset a client—usually through poor communication, taking an adversarial approach or simply by not meeting expectations. Without providing your client with a channel to resolve this, you may lose them and never know why.

A commitment to ongoing dialogue underpins all good stakeholder engagement

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Stakeholder engagement – a curious paradox The term stakeholder engagement has become firmly entrenched in mainstream business language, and the ‘e’ word appears liberally in government, corporate, private enterprise, and not-for-profit organisation policies, and publications. Stakeholder is a broad term that can include employees, shareholders, regulatory agencies, consumers of products and services and communities. The supposed benefits of engaging with stakeholders are widely acknowledged, some of these being: reduced risk, increased acceptance of an initiative or project; reduced conflict; greater cooperation; and long-term financial savings (Sandman, 2007). Stakeholder engagement, sometimes called public participation, is a vehicle for ensuring that stakeholders and communities are consulted and meaningfully involved in decisions that affect them and their quality of life. The International Association of Public Participation (IAP2) Core Values and Spectrum for Public Participation and the AA1000 Stakeholder Engagement Standard provide clear guidance for decision makers and practitioners. However, commitment to and investment in stakeholder engagement continues to be regarded in some sectors as an add-on luxury; particularly in challenging economic times. This is despite substantial evidence by researchers and commentators reflecting a clear correlation between stakeholder relationship quality and financial performance (Sinclair, 2010). Often in challenging times, triple or quadruple bottom line accountability flattens out to a single, financial bottom line, and sustainability and stakeholder engagement budgets contract. So why does this reluctance to effectively and continuously consult and engage with stakeholders persist among some politicians, decision makers, and project directors?

One reason may be that meaningful stakeholder engagement is actually about power sharing, which many leaders are reluctant to do. In reality, the exercise of power requires the consent of others who are prepared to give it in return for perceived benefits or to avoid negative consequences. Where politicians and business leaders try to exercise positional power without permission or consent, they are likely to face opposition and find themselves with less power. Wise leaders demonstrate they understand this principle by genuinely engaging with their stakeholders. Effective stakeholder engagement depends on a mindset—a trust and a belief that people are capable of moving past their own narrow self interest in order to understand and cooperate to find genuine solutions. Leaders and decision makers who think this way are more willing to embrace stakeholders representing different perspectives as a source of wisdom and as partners in finding solutions to the complex challenges facing our society. However, this is not yet the prevailing mindset towards stakeholders and communities demonstrated by many in decision making roles. One often hears sceptical and disparaging comments about ‘vested interests’, ‘squeaky wheels’, and ‘radical activists’ while many technical experts believe they have to know all the answers or their credibility is at stake. Often the approach is one of buffering, or keeping potentially oppositional stakeholders at arm’s length, and managing relationships to keep control of a process or project. Comments like ‘the community does not understand’ or ‘they don’t have our expertise’ can give the impression of arrogance. In reality, in this digital age there is an enormous amount of valuable information, knowledge and wisdom that stakeholders can bring to the table if they are invited in.

A headline recently caught my eye – Consultation is dead! (Twyford, 2012). At first this seemed like a win for consultation and engagement sceptics, but a deeper reading suggested otherwise. The author was saying that consultation is not enough, and that developing lasting solutions to complex issues and problems needs the cooperation, trust and collaboration of a broad range of stakeholders. Concepts like The Wisdom of Crowds (Surowiecki, 2005), Collaborative Governance and Smart Power (Twyford, 2012) incorporate the diversity principle into a theoretical framework for building stakeholder trust, support and cooperation in order to reach the ultimate goal of sustainable solutions. It seems that some leaders and decision makers fear that a commitment to engagement may give the impression that they don’t know what they’re doing, or that they’re politically weak because they’re not willing to take their own stand. On the contrary, to find enduring solutions to complex issues, it can make an enormous difference to include key stakeholders alongside the leaders and technical experts early in the decision making process, to fully explore and understand the nature of the issues, before the major decisions have been made. Leaders who confidently say, ‘We don’t know the answer, yet—and we need your help and wisdom to find a lasting solution,’ will be demonstrating that collaboration and shared power work today— to create a more sustainable tomorrow. Leah O’Brien-Addison Principal - Stakeholder Engagement SLR Consulting Australia Pty Ltd

References IAP2 Spectrum, (2004), International Association for Public Participation, Retrieved 24 October 2012 from http://www.iap2.org.au. Sandman, P., (2007), Risk based assessment of stakeholders. Retrieved 24 October, 2012 from http://www.psandman.com. Sinclair, ML., (2010), Developing a model for effective stakeholder engagement management, AsiaPacific Public Relations Journal 11. Accessed August 19 2013 from http:www.pria.com/au/journal/area?command=record&id=98&id=14 Twyford, V., Waters, S., Hardy, M., (2012), The power of co: The smart leaders’ guide to collaborative governance, Weston & Co Publishers, Kiama, New South Wales

Consulting Matters Features

Communities hold an enormous amount of knowledge which can assist and improve the outcomes for any feasible development.

Human values underpin stakeholder conversations THE MORE PEOPLE APPEAR DIFFERENT, THE MORE THEY ARE THE SAME.

There are fundamental human principles at play in any stakeholder engagement process which underpin all types of projects. Spending time getting to know your stakeholders’ motivations, wants, needs and preferences, and planning appropriately can and should be applied to any project and deliver numerous benefits. There are many international good practice engagement guides that provide more detailed planning and implementation advice than can be discussed here. In the end though, real stakeholder engagement success comes from: having a bank of real project experience, properly considering the nuances of each project scenario, as well as having an appropriate scope; enabling early engagement. Companies increasingly recognise that effective engagement can result in improved outcomes for all stakeholders involved in a project, save money, prevent reactive scenarios such as community complaints, and alleviate the risk of late stringent consultation requirements imposed by a government trying to regain stakeholder trust and reputation.

The challenge is investing sufficiently and early enough in a project’s lifecycle. The first step is planning, and the best question to ask is about change: what change is your project proposing? What will this mean to your stakeholders? Whether changes are real or perceived is less important than the degree of change and the potential impacts on people’s everyday lives. Good planning for stakeholder engagement should consider broad types of change in the context of key categories including: economics, environment, lifestyle (including recreation, health and wellbeing), land use, future opportunities (especially for younger generations), safety and security, and culture and tradition. If any of these categories will be subject to potential change or threats, well-planned and executed stakeholder engagement must be considered. Planning and preparedness can prevent reactive scrambling to community requests, reduce criticism about engagement processes and mitigate the possibility of delay or even stopping of a project due to stakeholder dissatisfaction.

Consider two projects remarkably different in terms of culture and socio-economics, yet demonstrating similarities in human values. One is located in rural Australia, where a proposed mine would bring about change to the lives of multi-generational farmers, some who have struggled with a succession of tough years and decreasing town populations. The other is in a village community in the Asia-Pacific region involving people with a subsistence lifestyle and basic education levels. While the two projects’ stakeholder engagement methods were tailored to individual requirements and carefully considered cultural aspects, the values that underpinned the day-to-day concerns of potentially impacted people were closer than most would imagine. The Australian farming community was concerned about how the mine may impact precious groundwater resources and whether there would be job opportunities for their youth who had moved away for employment. Stakeholders were skeptical about their country town becoming a base for mining.

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The Asia-Pacific community wanted to know if the mine would damage their waterways, therefore impacting on their fishing grounds and valued water resources. They also wanted to know if there would be broader community benefits, such as training or micro-finance opportunities. Living traditional subsistence lifestyles, would they still be able to access local gardens and forage for natural resources if the mine went ahead? These differences are not so great. It is human condition to naturally questions change—whether it is good, bad or a combination of both. We all care about our health, access to clean natural resources, opportunities for our children and the daily economics of providing food, water and shelter. The challenge of good stakeholder engagement is to source, facilitate and document productive conversations about proposed change and allow impacted stakeholders multiple opportunities to participate in their own evolution and undertake informed participation. Communities hold an enormous amount of knowledge which can assist and improve the outcomes for any feasible development. The only way to access this knowledge is through well-planned and active stakeholder engagement. Project proponents who ignore the power of community and individuals potentially impacted by their development significantly increase the chance of reactive, rather than proactive project development. Poor engagement and planning can reduce the chances of reaching their desired end-point in the appropriate time frame and budget. By seeking expert advice, planning and engaging with stakeholders early and often, it is always possible to achieve win-win outcomes for any project and community.

Charlie Wilson-Clark Senior Community Relations Advisor Golder Associates Alex Blood Principal Golder Associates

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Resource employers ramp-up call for skilled women WITH A RANGE OF NATIONAL PROGRAMS TO BOOST THE NUMBER OF WOMEN IN ITS WORKFORCE, AUSTRALIA’S RESOURCE INDUSTRY IS PROVING THAT EFFECTIVELY ENGAGING NEW SKILLED DEMOGRAPHIC GROUPS IS CRITICAL TO THE SECTOR’S ONGOING SUCCESS.

Prominent Hill processing plant at sunrise. Photos courtesy OZ Minerals

A decade’s worth of record investment activity has taught the resource industry many lessons about stakeholder engagement, from managing regional community concerns to effective government and public relations.

participation of women in resource employment is sitting at around 15 per cent. Move up the career ladder and the gap gets wider with women occupying just 10.5 per cent of managerial positions and around two per cent of CEO positions.

As director of group services with resource industry employer group Australian Mines and Metals Association (AMMA), Tara Diamond says the industry’s need to expand the pool of workers from which it recruits has driven a newfound strategic focus on engaging with untapped labour demographics. Women are top of the agenda.

In response to an Australian Government recommendation to increase the number of women in the resource sector in order to meet the industry’s growing skills demand, almost two years ago AMMA launched the Australian Women in Resources Alliance (AWRA).

“When it comes to unlocking new doors to highly engaged, skilled and motivated employees, women have emerged as an absolutely critical stakeholder group,” said Ms Diamond. “But despite operating at the forefront of technology and offering boundless career opportunities and benefits, resource and related construction companies have traditionally struggled to attract women employees.” According to government analysis, the

“The project brings together a network of resource employers and industry groups with an ambitious goal to increase in the level of women in resource, construction and allied service employment to 25 per cent by 2020,” Ms Diamond says. “Engaging with more women in the jobseeker marketplace is especially important to maintain Australia’s competitive advantage; that is highly skilled, technologically advanced workforces. “There is no escaping that our country has become a high cost place to do business and there are emerging global competitors biting

into our international market share. “But the mining boom isn’t over. Australia’s resource portfolio still ranks as one of the world’s strongest with $268 billion worth of major projects under construction and a further $350 billion in the pipeline. “While the demand for labour may have petered slightly, attracting and retaining skilled labour, especially to remote locations, remains one of the greatest challenges and opportunities facing resource employers.” While targeted recruitment campaigns are critical, the complex challenge for resource employers is to both break down the male-dominated image of the sector and effectively communicate that message to its target stakeholder groups. A number of innovative projects rolled out by AWRA have achieved widespread interest, including the industry’s first internet-based mentoring program. “AWRA e-Mentoring matches women in the early stages of their career with an experienced male or female mentor and guides them through a nine-month relationship using a web-based platform,” said Ms Diamond.

“The program offers a niche solution for women who have found it difficult to access mentoring opportunities due to transient work arrangements, remote locations or nontraditional working hours. “Since its launch seven months ago we have received very positive feedback and matched more than 80 mentor-mentee pairs as far apart as Karratha, Western Australia and Queensland’s Surat Basin. “It’s a fantastic example of how technology can drive the development of creative new engagement tools.” AWRA followed up this success with the launch of The Way Forward Guides —a package of information manuals that provide guidance and feedback on company diversity strategies and benchmark against international best practice. “We are also assessing employers under the AWRA Recognise Program which rates them according to their achievements and commitment to workforce policies and performance in gender diversity and women’s workforce participation,” said Ms Diamond. “Even long before this program was

launched, a number of individual resource employers were proving to be some of Australia’s best when it comes to workforce engagement strategies. “OZ Minerals is one shining example, having succeeded in lifting its direct female participation to 24 per cent overall and working towards 25 per cent female participation in every job level. “While Caltex’s BabyCare Bonus for new parents is encouraging the retention of women workers and demonstrating the company’s appreciation of the skills and productivity returns of employees. “Adapting to diversity is something that employers in our industry take very seriously and can translate to great benefits not only for individual organisations, but also for the industry’s contribution to wider economy. “We’ll continue to celebrate these initiatives and grow AWRA’s scope of programs to establish the resource and related industries as the number-one career choice for talented Australians—male and female.” Tara Diamond AMMA

Consulting Matters Features

Features Consulting Matters

Why we invest in infrastructure INFRASTRUCTURE COMPRISES BASIC PHYSICAL AND ORGANISATIONAL STRUCTURES NEEDED FOR THE OPERATION OF A SOCIETY OR ENTERPRISE, OR THE SERVICES AND FACILITIES NECESSARY FOR AN ECONOMY TO FUNCTION. IT CAN BE GENERALLY DEFINED AS THE SET OF INTERCONNECTED STRUCTURAL ELEMENTS THAT PROVIDE A FRAMEWORK SUPPORTING AN ENTIRE STRUCTURE OF DEVELOPMENT. IT IS AN IMPORTANT TERM FOR JUDGING A COUNTRY OR REGION’S DEVELOPMENT AND CAN BE DEFINED AS ‘THE PHYSICAL COMPONENTS OF INTERRELATED SYSTEMS PROVIDING COMMODITIES AND SERVICES ESSENTIAL TO ENABLE, SUSTAIN, OR ENHANCE SOCIETAL LIVING CONDITIONS.’

Current discussion about the national importance of infrastructure investment ought to have at its foundation the implications for national economic prosperity. But all too often these factors are overlooked or misunderstood. In addition, there is insufficient attention to engagement with stakeholders: the community, the voting public and shareholders, generally to the detriment of project progress. In considering models of stakeholder engagement it is imperative that the debate is not too heavily skewed toward those that already have access to infrastructure or indeed stand to gain the most from infrastructure investment. The silent stakeholder who is not represented in the conversation is one of the more important parties to the decision. We need to be cognisant of how the silent stakeholder is affected by our infrastructure decisions, be they from a low socioeconomic group, a future generation, unrepresented minority or simply the under-informed.

The context By 2020, Asia’s economic output will be larger than Europe and North America’s combined. If Australians are to maintain a relatively high standard of living we must either find additional products [or resources] to sell to the world, mainly Asia, or increase the efficiency at which we produce our output. Without globally competitive infrastructure assets that are more efficient than those available at present, to increase our productivity and our standard of living, we are likely to lose some of the economic gains of the last two decades. Infrastructure Australia has noted that there is a deep disconnect between the infrastructure Australians want and the infrastructure we are prepared to pay for. As a mature economy we need to recognise the benefits of paying directly for the infrastructure that we use, rather than expecting that it be provided at no ‘cost’. The engagement of

stakeholders is key to explaining not only the benefits of investing in our infrastructure, but also the consequence of not investing or not leveraging our assets better. At the same time a lack of transparency in infrastructure decision making often leads to inefficiency, community distrust and limits informed debate about the trade-offs (e.g. which projects, service outcomes, prioritisation, funding, and so on) that are implicit in infrastructure planning. Stakeholder engagement through publication of strategic plans and project business cases (or at least their key findings and assumptions) will improve the public’s ability to understand these projects. Further it will provide an environment which is conducive to an open debate about investment priorities and increase the public’s understanding of the need to pay for the infrastructure used.

Going forward We need to better utilise our existing infrastructure assets where possible, rather than relying on construction of additional infrastructure to meet demand. Increasing the utilisation of our existing infrastructure relies on one of two things occurring: 1. We increase the usage of the assets by smarter management, by balancing ‘directional’ demands and by managing peak periods. 2. We increase the density and the land use of our city blocks to improve the utilisation of existing infrastructure assets. There are considerable additional benefits to be had from this second approach, as without densification of our cities heterogeneity may be lost, with older and wealthier inhabitants living in the inner circle of suburbs, while younger and economically disadvantaged citizens are restricted to the outer suburbs. Some of our children may be denied the opportunity of living in the communities where they grew up and may be forced out to the boundaries of our cities.

Infrastructure investment and intergenerational equity Infrastructure investment decisions need to consider the needs of our community both today and tomorrow. We should invest to achieve outcomes in the future – the asset should meet the needs of current and future generations. We can consider such assets as vehicles for intergenerational wealth transfer, as our current day investments in infrastructure appropriately facilitate use by future generations to achieve a higher standard of living. In taking a longer term view of infrastructure investment we must be vigilant that our investments facilitate lasting and positive legacies for future generations. There is therefore a need for patient capital to be invested in assets that may be border line today but whose returns in the future are significant and enable greater prosperity. In an environment of scare capital, consultation with stakeholders is vital as there is an appreciation that as they pay for the infrastructure so they will wish to ensure that are getting the infrastructure that they want. At the same time this will require robust cost benefits models and even more robust business models to protect any capital allocated to what on the surface may appear a risky asset. Doing more with less, investing in smarter infrastructure and designing our cities as systems rather than focusing on the development of specific projects is vital to leaving behind infrastructure that enables future generations to continue to increase their standard of living. David Singleton Global Planning Leader Arup Mark Vassarotti Regional Leader, Economics Group Arup

Consulting Matters Features

Australians and the urban environment: Meeting the needs of community stakeholders to deliver the cities of our future Creating ‘liveable cities’ is an increasingly popular theme for the planning, design and engineering disciplines, as well as both public and private organisations tasked with delivering infrastructure and services that develop the cities of our future and meet the needs of critical stakeholders. We assume that liveable cities should by definition offer a high quality of life to community stakeholders; that is those who live and work in them. But we don’t know exactly what Australians themselves value in regards to their urban environment. What are their priorities and how can we, as an industry, best deliver this? A recent piece of independent research on households across Australia explored attitudes and priorities with regards to what Australians want in their cities, and has enabled the industry to better engage with key community stakeholders. The study,

commissioned by MWH Global, set out to explore service and infrastructure priorities, important components of the cities of our future and attitudes towards water, transport and energy consumption. The survey of more than 1,000 people found that what Australians most care about in their urban environment is access to healthcare, followed by employment and essential services such as police and ambulance. Despite the sophisticated lifestyles many Australians now lead, complete with the technological trappings of modern living, it seems it’s still the basic needs such as being healthy, secure and safe that top the priority list when choosing where to live. The most important infrastructure element Australians value when choosing the city, town or suburb they want to live in is water. This rated higher than electricity, roads or sewage. Seventy six per cent of Australians

value water supporting infrastructure more than sewage supporting infrastructure, 69 per cent value water more than roads, and 55 per cent more than electricity. The key themes of access and proximity to services suggest that wherever they live, Australians value the ability to quickly and easily get to what they need, whether it’s a trip to the doctor, getting to work or visiting friends and family. Not surprisingly, over 90 per cent consider high quality roads as an important priority in choosing where they want to live. Australians are clearly a pragmatic population and value basic infrastructure and services in their urban environment. With over half (57 per cent) of people willing to move to an area that provides them a higher quality of living, getting the basics right will be hugely important to maintain and enhance thriving communities across our nation. Delivering

Features Consulting Matters

and ensuring the accessibility and reliability of services such as healthcare, essential services, water and electricity should be a priority focus for Government and private stakeholders as we seek to build liveable cities that meet the needs of Australians. Water emerged as an important part of what Australians consider makes a place liveable; with nine in 10 indicating that water management is vital in the place they live, in particular those living in cities (94 per cent). Interestingly, there is still a major stigma associated with drinking recycled water, with almost two thirds of Australians (64 per cent) willing to pay a 10 per cent premium to have drinking water without recycled sewage in the network. Education around both the necessity and safety of different water supplies is a high priority in order to ensure we are able to maintain a sustainable water supply. The study also investigated what people are looking for in the future of our cities. Access to safe tap water for drinking was ranked as the most important aspect of where people will live in 30 years, highlighting the need to ensure that quality water and supporting infrastructure is available now and into the future. Getting public transport right is also a crucial part of creating liveable cities. The research found that while 54 per cent believe they get good value from the public money spent on roads in their local area, nearly all Australians (91 per cent) believe that road networks will need to be maintained and operated efficiently to make an area liveable. If there was public transport within one kilometre of where Australians live and work, 77 per cent would actually use it. The research findings present significant implications for tackling the challenges of urban planning for both government and private stakeholders. For the first time, we have a clear picture of what Australians want from their cities, which is a valuable tool for planning and prioritising resources for the future. Understanding Australiansâ&#x20AC;&#x2122; priorities for their urban environment and ensuring industry works with government to deliver this is crucial to ensuring we attract and retain people to live and work in our cities and to meet their needs for sustainability and liveability.

Mark Bruzzone Managing Director, Government and Infrastructure Australia MWH Global

Your life, your home, your city -

This report can be viewed in full at MWH Global online:

the future of Australiaâ&#x20AC;&#x2122;s liveable cities.

http://www.mwhglobal.com/files/3313/6961/7601/

May 2013

MWH_Liveable_Cities_final_Website.pdf

Consulting Matters Features

Traditional stakeholder engagement is dead GONE ARE THE DAYS WHERE TRADITIONAL STAKEHOLDER ENGAGEMENT TOOLS ARE EFFECTIVE ON THEIR OWN. WE LIVE IN A WORLD WHERE WE ARE MORE CONNECTED THAN EVER BEFORE, WHERE WE ARE EXPOSED TO AN UNPRECEDENTED AMOUNT OF CONTENT. IT IS NOW CRITICAL THAT GOVERNMENTS AND ORGANISATIONS HAVE A MORE COHESIVE AND COORDINATED COMMUNICATION APPROACH TO STAKEHOLDER ENGAGEMENT ON INFRASTRUCTURE PROJECTS. Governments and organisations planning to embark on large infrastructure projects now need to consider the new communication channels available to community members to share news and information across a broader global community. The idea of a global community is not a new one. Globalisation acknowledges the shrinking of physical distances through online information channels and new media. Tools such as Facebook, Ning and Twitter have the ability to connect physically separate communities virtually in the online world. Savvy community members can easily develop their own media content to share their opinions, experiences and feedback with other stakeholders and communities. This means geographically disparate people can influence project outcomes through the recruitment of influencers or the attainment of critical mass. In order to operate successfully, governments and organisations need to respond to this evolution by moving away from traditional one-way engagement. By integrating public relations and engagement, governments and organisations do more than just contact their audiences. They connect, engage, and they partner.

Governments and organisations are increasingly aware that public relations and reputation management go well beyond just a glossy brochure or positive media coverage. What happens at a local level can have a far reaching, if not global, impact. The media is often quick to take the side of the lone battler pitched against the giant corporation. To avoid this from occurring, organisations need to work closely with the communities in which they operate. This is often referred to as ‘social licence to operate’. To earn and maintain a social licence to operate, it is vital to develop an open and transparent relationship with the community and demonstrate a genuine interest in what concerns them. It is equally, if not more important, to follow through on issues raised and to deliver on any promises made. Holding a social licence to operate is now a critical factor for successful major infrastructure projects and is only achievable when stakeholder engagement is entwined with an organisation’s public relations, media and operational plans. At SKM we call this the ‘integrated communication approach’. An integrated communication approach not only creates an open and transparent

relationship with the community and involves them in projects but it also provides the opportunity for an organisation to address community concerns, as well as manage their brand and build their reputation. By adopting an integrated communication approach we can prove the value of both public relations and engagement tools. On their own, neither public relations nor engagement is enough. They must band together to gain wider recognition and credibility in helping organisations to achieve their brand and commercial legitimacy. Only public relations and stakeholder engagement combined can provide the level of communication needed to gain and maintain a social licence to operate.

Kylie Cochrane Global Practice Leader – Communication and Stakeholder Engagement Sinclair Knight Merz Nea Pilgrim Communication and Stakeholder Engagement Consultant Sinclair Knight Merz

New monthly webinar series Develop your skill set and earn valuable CPD points without taking time out of the office and losing billable hours. October 24: Work/Life Chaos & the Case for Flexible Working Speaker: Lucinda Hewitson Consulting, Director Lucinda Hewitson Dual income families, increasing numbers of sole parents and an ageing workforce now dominate the Australian population. Baby Boomers are redefining what retirement looks like and Gen Y expect flexibility from day one of their careers. The traditional working model suits fewer workers than ever before; yet it dominates. Lucinda will share the business cases and the recent work by the South Australian Engineering Industry Gender Equity Working Group on flexible working. 14 November: Insurance Claims- Behind the Scenes Speaker: Planned Professional Risk Services, National Business Manager, Cos Cirocco and Risk Manager, Hayley Landers In the ever changing world of insurance it is within the best interests of individuals and their employers to understand how insurance claims work. Attend this webinar to gain a behind the scenes understanding of how insurance claims are managed and the issues that arise in this process. At the conclusion of each claim consideration will be given to risk management tools which may be applicable to avoid such claims occurring in the future. For more information email education@consultaustralia.com.au or visit www.consultaustralia.com.au

Features Consulting Matters

I can just barely hear you

Amplifying the sound of the silent stakeholder Ever found yourself in an unproductive ‘them versus us’ situation with your key stakeholders (i.e. you have a feeling that you, your project or organisation has become the target at which to fire concerns)? There are four key steps to moving the crosshairs off your back and shifting focus onto the various attributes and dimensions of the issue to start taking positive steps forward with your stakeholders.

Establish that there are at least two sides to every story

Very few issues in the modern world map into a binary statement (yes versus no, solution one versus solution two) – most in fact demonstrate complexities and subtleties that make them less than definitive. As a result, it is more likely there will be several different ways in which to characterise an issue, decision or topic. Often when caught in a ‘them versus us’ situation, the nuances of the topic are lost, and entrenched ‘for and against’ thinking is allowed to develop and proliferate. The first step in breaking the polarity is to map out the depth of perspectives on whatever the topic is: draw it out and visualise the various lines of thought in order to clearly demonstrate the multiple views. Think about the benefits and challenges associated with each perspective and draw those out as well. However a key part of being able to do this effectively is acceptance on behalf of the ‘us’, that some of the views that are presently held within your project team or organisation, may also need to be modified in order to move to a constructive position with stakeholders.

Map out those who are not being heard

Once you have the dimensions of the situation mapped, correlate these with the stakeholders you have already engaged in the dialogue (i.e. your ‘them’). You will probably find that there are lines of thought on your map that do not correlate to anyone you are currently engaging within your stakeholder set. This often happens around benefits—especially when they accrue to a many, and the challenges impact only a few. That is not to say that inequality should be perpetuated, just that effort is often spent consulting with those who are negatively impacted, without directly providing the perspectives of those who hold a different view. Once you’ve identified your stakeholder gaps, seek out representatives that are likely to hold those views you’ve identified as missing from the conversation and invite them to participate.

Take the conversation to the silent participant

As with any invitation to participate in something that has not easily captured your attention, to increase the likelihood of hearing views currently missing from your stakeholder conversation, you need to find ways to take your conversation to the missing participants. As a busy professional, you know first-hand – it is not that you’re uninterested in many hot topics – it’s just that you are time poor and need quick, easy ways to contribute and be engaged. This is the same for many of your silent stakeholders. Seek out where they are already engaged and participate, and try to connect with them there. Provide easy to access input methods to encourage their involvement.

Move the conversation to the middle

Having found your silent stakeholders, and tailored your approach to enable them to participate, provide forums to hear directly from all stakeholders. Your aim is to provide a venue for all of the different sides of the story to be heard, directly from the perspective holder. In this way, you aim to move the dynamic away from ‘them versus us’ to one of shared-understanding. From here, you can move towards the all-important conversations that start with ‘we’.

Emma Pryor Global Service Line Leader, Stakeholder Outreach MWH Global

Economic

Forecast

September 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 forecasts by the International Monetary Fund (July 2013) show that world growth slowed from 3.9 per cent in 2011 to 3.1 per cent in 2012. The IMF has lowered its forecasts, now predicting that growth will remain at 3.1 per cent in 2013 and strengthen to 3.8 per cent, rather than 4 per cent, in 2014. Growth in our trading partners’ economies is expected to be stronger than this: a bit less than 4 per cent in 2013, and around 4¼ per cent in 2014. The chart opposite shows forecasts for selected countries and regions, ranked by expected growth in 2013. Leading indicators of economic growth in China and Indonesia weakened in the June quarter; but stronger results in the United States, the Euro area, Japan, Korea and India led to an increase in the weighted average indicator for our trading partners. Both Treasury and Reserve Bank (RBA) estimate that the Australian economy grew by 2¾ per cent in 2012/13 and both forecast growth of 2.5 per cent in 2013/14 and around 3 per cent in 2014/15. Treasury forecasts 3 per cent in 2014/15, the RBA 2½–3½ per cent. Slightly more pessimistic, we are forecasting growth of 2.4 per cent in 2013/14 and 2.7 per cent in 2014/15. Engineering construction activity fell by 3 per cent in the March quarter of 2013: by 2 per cent in mining, oil and gas and by 4 per cent in other engineering construction. Activity was down in all states except Queensland and South Australia. Among the bigger states, it fell heavily in Victoria (12%) and New South Wales (8%) but only slightly 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 2 per cent in non-residential building, by 0.6 per cent in new housing, and by 4 per cent in housing renovations. Total construction activity fell by 3 per cent to about the same level as a year earlier.

Non-residential Building Activity fell by 2 per cent in the March quarter of 2013 to a seasonally-adjusted annual rate of $32.9 billion: 5 per cent less than a year earlier. Forward indicators deteriorated in the March quarter. Work commenced in Australia in the year to March was 7 per cent less than work done, although at the end of March there was still a healthy 8½ months work in the pipeline. The indicators were strong in New South Wales and the Northern Territory, neutral in Western Australia, but weak elsewhere. National approvals increased by 5 per cent in the June quarter to a seasonally-adjusted annual rate of $35 billion. The rise was driven by a big increase in approvals of health care buildings – mainly hospitals, classified as private, in Queensland and Victoria – as a result of which total private sector approvals increased by 3 per cent, despite falls in industrial and commercial approvals. Public approvals rose by 11 per cent to an annual rate of $7.7 billion: 22 per cent of the total. Total work approved in the year to June was only $32.2 billion: 3 per cent less than estimated work done in 2012/13. Whether private non-residential building activity will continue to rise in the year ahead depends largely on business conditions and confidence. The National Australia Bank’s Quarterly Business Survey for the June quarter of 2013 paints a bleak picture, with business conditions (sales, profits and employment) struggling, and confidence falling from 1.7 to -1: the negative result indicating that respondents who thought business conditions would get worse outnumbered those who thought they would get better. We estimate that activity fell by 4 per cent last year to $33.3 billion and forecast little change from that level this year and next.

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)

9,862

8,541

8,155

2,517

5,492

704

456

1,332

37,059

2011/12 (a)

7,590

8,622

7,390

2,328

6,235

510

706

1,280

34,660

2012/13

7,600

8,480

6,720

2,200

5,880

390

970

1,040

33,280

2013/14

8,400

8,100

6,700

2,150

5,900

450

800

33,300

2014/15

8,550

8,450

6,750

2,100

5,650

490

855

705

33,550

% change 2011/12

-23

-9

-8

-28

-4

-6

2012/13

-2

-9

-5

-6

-24

-19

-4

2013/14

-4

-2

-18

-23

2014/15

-2

-4

-12

a = Actual

Economic

Forecast

September 2013

Engineering Construction Recent activity The volume of work done fell by 3 per cent in the March quarter to an annual rate of $122.6 billion: about the same as in the March quarter of 2012. Forward indicators of activity continued to ease in the March quarter. In the year to March, 32 per cent less work was begun than was done; but at the end of March there was still 11 months of work yet to be done. In Western Australia there was nearly 16 months work in the pipeline, in Queensland 14 months. Commencements increased in the March quarter. The rise was caused by a big lift in work started on mining, oil and gas projects in Queensland; commencements in all other states fell. Nationally, commencements rose to an annual rate of $96.9 billion. But in the year to March they totalled only $85 billion: about a third less than work done in 2012/13. As the chart opposite shows, in the March quarter the year-to-date volume of commencements fell sharply in Western Australia and fell in Victoria, but was little changed in New South Wales and South Australia. The volume of work yet to be done fell by 3 per cent to $118.6 billion in the March quarter and was 22 per cent less than a year earlier. Two-thirds of this work ahead is on mining and heavy industry. Following a big 35 per cent increase in 2011/12, activity is estimated to have risen by 8 per cent to a peak of $125.7 billion in 2012/13. It is forecast to ease by 2 per cent this year and to fall by 7 per cent in 2014/15.

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

23,100

10,400

39,950

5,550

41,650

1,100

3,250

700

125,700

2013/14

21,590

10,220

39,500

4,490

42,670

1,040

2,725

765

123,000

2014/15

20,330

10,240

35,150

4,030

40,000

920

3,250

480

114,400

103

2012/13

-10

-11

2013/14

-7

-2

-1

-19

-5

-16

-2

2014/15

-6

-11

-10

-6

-12

-37

-7

% change 2011/12

a = Actual

New Housing In the year to December 2012, Australiaâ&#x20AC;&#x2122;s population increased by 394,200. Natural increase of 158,300 was 4 per cent higher than in the previous year to December and net overseas immigration of 235,900 was up 17 per cent. Growth accelerated strongly in the territories, and at a faster than average pace in Western Australia and Victoria. The chart opposite uses recently revised ABS estimates to show average growth over the past decade. The revised estimates have been used to re-calculate the underlying requirement for new housing in Australia: now estimated to be around 185,000 in 2013/14. Dwelling approvals rose in the June quarter in New South Wales, Queensland, Western Australia and South Australia, but continued to fall in Victoria. Nationally, the trend in approvals increased by 1 per cent to an annual rate of 160,900: 6 per cent more than a year earlier but still well short of requirements of around 185,000. Approvals of houses increased by 4 per cent to an annual rate of 97,000 and were 10 per cent higher than a year ago. Multi-unit approvals, which have been strong, fell by 2 per cent to an annual rate of 63,800: the same as they were a year earlier. Consumer confidence, buoyed by the recent rate cut, increased by 3.5 per cent in August to be 9.4 per cent higher than a year ago. A further rate cut is expected before year end. We expect low interest rates, along with already improved affordability, rising house prices and strong population growth, to drive new housing higher. Activity is forecast to increase by 3.5 percent this year and by 5.8 per cent in 2014/15.

New Housing Forecast 2010/11 (a)

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

NSW

VIC

QLD

TAS

ACT

Australia

9,143

13,830

8,257

2,550

6,506

697

536

1,231

42,750

2011/12 (a)

8,547

13,638

7,178

2,222

5,541

578

561

1,345

39,610

2012/13

10,000

14,080

7,130

1,810

5,630

490

510

1,250

40,900

2013/14

10,100

13,900

7,850

2,000

6,400

400

530

1,150

42,330

2014/15

10,700

13,950

8,650

2,200

7,150

450

520

1,180

44,800

2011/12

-6.5

-1.4

-13.1

-12.9

-14.8

-17.1

4.8

9.3

-7.3

2012/13

17.0

3.2

-0.7

-18.5

1.6

-15.2

-9.1

-7.1

3.3

2013/14

1.0

-1.3

10.1

10.5

13.7

-18.4

3.9

-8.0

3.5

2014/15

5.9

0.4

10.2

10.0

11.7

12.5

-1.9

2.6

5.8

% change

a = Actual

Consulting Matters Protecting your business

Why you should be engaged in your Professional Indemnity insurance renewal Have you ever contemplated becoming more engaged in your Professional Indemnity (PI) insurance renewal process? Why should you become engaged? If we look at the stakeholders involved with the renewal of your PI insurance they are:

•

The Insurer – they calculate the risk premium and carry the risk of a claim.

•

The Broker – they are supposed to represent your interests in negotiating the best possible deal with the insurer; for which they receive commissions and/ or fees.

•

You – your assets are at risk and your money is being spent on a premium.

Traditionally all professional firms outsource the entire procurement process for their PI insurance. This is the unfortunate reality of how PI insurance is regularly purchased. The insurance industry has resisted dealing directly with clients due to the complexity of the product and the need to fully explain how this type of insurance operates. Hence the insurance industry leaves this job for the more experienced insurance broker. However, this does not preclude you from having a significant level of involvement in the process, which can result in better outcomes for all stakeholders. As part of your renewal process your broker should discuss and agree a renewal strategy with you. This involvement should inform you and increase your understanding of the current status of the insurance market including: any potential new markets that may offer competitive terms for your business, improved levels of cover available, and the timeframes your broker has in mind for delivering their negotiation results. This direct engagement provides your broker with your views and objectives including: any changes that need to be made to your insurance program, whether or not you find a particular alternative insurer unattractive or wish to maintain your current relationships, whether you are pressured by rising costs and hence are looking at every possible saving, or perhaps that you are simply going on holidays and need your renewal finalised

much earlier than normal. Additionally your involvement can enhance the presentation the broker makes to the insurance market in respect of defining your business by clearly articulating the nature of services. If you have a claims experience this must be presented in its best light – something that may require your insight as to cause and also to ensure the inclusion of detailed risk management initiatives that have been implemented to avoid reoccurrence. Feedback from earlier marketing exercises can also assist you understand the difficulties the insurance market may have with interpreting the nature of your business and the particular risks it faces. This can have the flow on effect of assisting you to better define your business and the scope of deliverables from a client engagement perspective, and can see the introduction of improved risk management techniques. Where necessary a face to face meeting with your insurer can allow them to appreciate the person behind a name. It provides them with an opportunity to be better informed regarding risk exposure or why certain claims may have occurred and risk management strategies implemented. Insurance is a relationship business and any opportunity for you to enhance the relationship you have with your insurer should be maximised. This may involve travelling interstate or even overseas to meet with them; at the end of the day it is your call as to how far you wish to be engaged. Of course the quantum of your premium will have a major influence upon the level of engagement you choose to develop in the renewal process. If you are already paying a ‘minimum premium’ then there may be lesser benefits to be gained other than to be assured your broker understands your business. By contrast, where you may be paying tens of thousands or hundreds of thousands of dollars in premium there can be a real economic benefit in having a more hands on role. Not only can you have a direct impact upon your premium paid but you also may be able to clarify your business activities so that

there is less chance of a gap in cover arising or an unreasonable risk loading being applied. Your direct engagement is paramount when the broker you have engaged is acting as an agent of the insurer. How can you be sure they really are doing what they say when their allegiance and economic fortune is directly or indirectly linked to the fortunes of a particular insurer with whom they have an agency arrangement or ownership affiliation? Pricing of insurance, believe it or not, is only a small part of the renewal negotiation process. Negotiating an appropriate level of cover and establishing a healthy relationship with the insurer are, in our opinion, far more important than the premium. If you save a few dollars by shifting insurers or brokers each year, you significantly increase the risk of not having a million dollar claim paid. It takes a lifetime of small premium savings to cover the cost of one unpaid claim. By engaging with your broker and insurer in the renewal process you can establish a trusting relationship where you can apply pressure when needed – whether this is to achieve some pricing or cover flexibility from the insurer. The prospects of achieving flexibility are always much greater when you have a long-term relationship to call upon. If you are not engaged in the renewal process you get what is delivered to you whenever the broker feels like getting it to you. Any business proposition where all stakeholders are actively engaged in the process generally achieves positive outcomes for all those involved. Negotiation of your insurance renewal is no different. If your broker does not invite or resists your engagement in the renewal process… change brokers!

Chris Bovill Managing Director Bovill Risk & Insurance Consultants Pty Ltd (BRIC)

To the extent that any of the above content constitutes advice, it is general advice without reference to your needs or objectives and therefore cannot be relied upon. Before acting on the above information you should obtain advice specific to your needs.

Protecting your business Consulting Matters

Consult Australia member firm, Summermore Pty Ltd share their experience using the PI Pathway

SUMMERMORE PTY LTD WAS ESTABLISHED IN 2004 AS AN ENGINEERING CONSULTANCY WITH A RESEARCH AND DEVELOPMENT ARM TO SERVICE ITS CLIENT’S NEEDS. PART OF THE FIRMS MISSION IS TO PROVIDE A CLIENT SERVICE ORIENTATED CONSULTANCY THAT PROVIDES BEST PRACTICE ADVICE AND SOLUTIONS WITH EACH INDIVIDUAL PROJECT TAKEN AND PLANNED BASED ON ITS OWN MERIT. When they were first established in 2004, Summermore Pty Ltd signed up with Bovill Risk & Insurance Consultants (BRIC) following a recommendation from an industry colleague. They found the initial engagement process very positive and signed up immediately having been provided personal and quality service. The firm has given notice on two occasions and advised that for both, BRIC provided fast advice and efficient and professional service – notably they touched base at regular intervals to ensure there were no further developments for which the firm needed support or advice. Summermore Pty Ltd said that BRIC provide their services in a manner which demonstrates they truly care for their clients. They always seek out a solution and stay in touch as issues progress and are dealt with. “Insurance is a very personal thing and it is very important to feel completely comfortable with your insurer. BRIC has taken such good care of us since we first signed with them nearly 10 years ago and we simply have never had reason to look elsewhere. I would feel totally confident recommending them to other firms – something that I have done many times.” Ron Bell Summermore Pty Ltd

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.

BRIC

Bovill Risk & Insurance Consultants

Consulting Matters Business essentials

Fee scales... do they help or hinder? A common request to the Consult Australia office is the request for us to develop a ‘fee scale’, whereby a table of fees is published for the benefit of both consultants and their clients. The request is often driven by a client wanting to know what might be a ‘reasonable’ price, or a firm similarly wanting to ensure their quote isn’t out of touch with the market. Despite these valid concerns, the creation of such a scale is problematic for a couple of reasons. The first relates to competition law. From a legal perspective, there is the risk that such a scale could be seen as a form of price fixing, whereby competing member firms use such a scale to set a floor price for any work tendered. Section 45 of the Competition and Consumer Act (Cth) 2010 prohibits any arrangements, whether formal or informal, that serves to reduce price competition. This provision has been used by the Australian Competition and Consumer Commission (ACCC) to take action against service providers working together to set minimum

prices in a particular market, and consultants in the built environment sector could be vulnerable to a similar charge if we were to introduce a fee scale. Even though the push to develop a fee scale is often motivated by a sense of fairness, and a desire not to overcharge clients, the perception of price fixing is a risk not worth taking. The other central argument against a fee scale covers the converse possibility, that it could encourage a price war that our industry simply does not want, and cannot sustain. The creation of such a document would serve to emphasise the importance of fees relative to other considerations for clients when selecting tenders. For some time now, Consult Australia has pushed for clients to seek out the proposal that offers the best value for money rather than lowest cost when selecting a tenderer to work on a project for them. While the cost of work is undoubtedly important for any client, other factors, such as quality, innovation, and time taken to do the work should also be considered. Firms should be

seeking to win work based on their expertise, their ability to do a better job than anyone else, and where appropriate to provide innovative solutions to complex problems. By evaluating the work of our industry based on cost, and cost alone, our efforts to shift tender selection practices are undermined. At the same time, it would potentially serve as a kind of price signal to encourage rival firms to undercut each other’s tender prices, rather than putting together a superior bid. Aside from these arguments against a fee scale, the development of a scale would clearly be a complex and fraught process, trying to find a way of comparing work that is often not alike. The intent of those who regularly approach us for assistance on pricing is genuine and to be commended, but having carefully evaluated the arguments for and against a fee scale for our industry, such a tool is simply not the answer.

Robin Schuck Consult Australia

Tubular connections guidance tuned up …JUST RELEASED…

The Australian Steel Institute’s collection of Simple and Rigid Connections guides has been bolstered with a new eight-volume series dedicated to the theory and design of structural steel Hollow Section (‘tubular’) member connections. Connections have a major engineering and economic impact on steel structures and the new series responds to increasing interest in these types of sections as the need for lighter adaptable construction grows. The new Tubular Connection Guides detail design methods and provide design capacity tables and detailing parameters for a range of tubular connections commonly used in Australia. They align with the current Australian Standard AS 4100, reflecting the current state of knowledge of connection behaviour based on test results, finite element analysis and related international research. Combined with a worked example and accompanying design capacity tables, each connection model provides a self-standing solution for the design engineer.

To order online, visit http://steel.org.au/bookshop

Enquiries to Tel 02 9931 6666 or Email: enquiries@steel.org.au

An Advertorial

Corporate social responsibility Consulting Matters

Partner Housing provides water reticulation, sanitation and structural design for the North Ranongga Community Association, Solomon Islands Partner Housing Australasia (Building) Incorporated is an entirely volunteer organisation, providing pro-bono professional engineering, architectural and building services and funding for housing, water supply, sanitation and associated training in developing countries.

One of the 2013 Partner Housing projects was the provision of design, materials, skilled tradesmen and supervisors working with local volunteers for the extension of the Buri village water supply, including six 3,000 litre tanks, two kilometres of pipeline and six community standpipes.

Partner Housing offers two basic services:

During the 2013-2014 financial year Partner Housing plans to extend this program, and is seeking financial support from Australian partner consulting organisations. For more information, please visit

1. Pro-Bono ‘design and help-desk’ engineering services to other Non Government Organisations (NGOs) and governments of smaller developing Asia-Pacific countries. 2. Finance, design, materials supply, supervision, mentoring and training for village infrastructure and housing projects. Partner Housing is currently providing this second service to village projects in three South Pacific countries:

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Solomon Islands: Water reticulation and latrine construction. Partners: North Ranongga Community Association and South Ranongga Community Association.

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Papua New Guinea: Affordable house construction in villages near Mount Hagen. Partner: Vision for Homes PNG.

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Cook Islands: House remediation to improve cyclone resistance. Partners: Cook Islands Red Cross and Australian Red Cross.

VIP Latrine - Ranongga Photo by D Kaunitz courtesy of Partner Housing

www.PartnerHousing.org.

To provide technical and financial assistance, please contact PartnerHousing@electronicblueprint.com.au.

Water Standpipe - Ranongga Photo by W Ryan courtesy of Partner Housing

Making eco ladrillos - Rowan Peck and Marion Poz (Seres congress graduate from 2012) with the spontaneous help of a local two and four year old outside their front door Photo courtesy NDY

Workshopping ideas - a new educational experience for the local youth Photo courtesy NDY

Project Seres in

Guatemala

Guatemala’s natural abundance of biologically significant and unique ecosystems is testament to its natural beauty. But this mountainous landscape and the traditional lifestyle of its inhabitants is under threat.

called Eco Ladrillos, which literally translates to Eco Bricks. Already utilised in other parts of the third world, this is not a new concept but it’s one which is providing a sustainable re-use of rubbish.

“This is a society, where for thousands of years, everything they’ve touched and owned has been bio-degradable,” says NDY director Rowan Peck. “Then plastic started appearing —bags, wrappers, packaging—and the locals throw them on the ground because that’s what they’ve always done. In some parts, litter is buried two metres into the ground they use for growing their crops. The soil is impregnated with garbage.”

“Of course, this solution only deals with a fraction of the garbage tumbling down the streets and ending up in the soil,” says Peck. “Project Seres is looking to deal with the problem of education: how to get the locals to re-think their approach to waste.”

Peck recently travelled to Guatemala to volunteer at a Project Seres workshop. Project Seres is not an aid organisation, but a charity focused on engaging, educating and empowering local communities. The workshop Peck attended was held in Antigua in June—the aim of which was to engage with and educate the local Guatemalan youth —giving them the opportunity to become leaders of their own sustainability destiny. In the absence of any coordinated waste management system, one solution has been to use garbage to build houses. By filling plastic bottles with rubbish, Guatemalan’s are effectively dealing with two issues: waste and housing. The waste-filled bottles are

Founded and run by former NDY engineering graduate Corrina Grace, Project Seres looks to educate the locals—particularly the younger generations—that they don’t have to be wading around in a sea of garbage. The initiative came about when Grace successfully adapted the well-known OzGreen program to suit the Guatemalan situation. The three-day workshop was a revealing experience for Peck and he admits that it was a rough start. “These kids are used to going to school in the morning and going home again at 1pm—and suddenly we ask them to engage in intensive eight-hour days. They were amazingly resilient and passionate and by the final day, were left to their own devices. They sat down with an activity plan that asked

them to identify their goals and how they proposed to measure them. By the end of the day, they refused to leave—they wanted to get it sorted!” In addition to direct involvement from NDY through volunteering efforts, the NDY Charitable Trust has donated funds to Project Seres through OzGreen, with another instalment earmarked to be donated over the coming months. According to Peck, every $5,000 is enough to put 100 kids through this program. Peck can see the clear benefits of the Project Seres approach. “Whilst the kids may have basic literacy and numeracy skills, the Seres approach allows them to own the process and outcomes. By the end of three days, they were able to stand up in front of their peers and community leaders and articulate, persuade and engage with the audience. Watching that unfold in the kids was the highlight of the three days for me. It gave me a deep sense of hope for Guatemala’s future.” Ric Navarro Communications Director Norman Disney & Young

Market day - a mix of traditional and increasingly western approaches Photo courtesy NDY

Consulting Matters Corporate social responsibility

Uni experiment a hit with Indigenous students Demystifying university and professional services work for Aboriginal and Torres Strait Islander students was the main goal of the inaugural Science and Infrastructure Development Winter School. Based on the feedback gathered from its first participants, the Winter School hit the mark. Hosted by the Queensland University of Technology (QUT) in partnership with Parsons Brinckerhoff, the Winter School ran from 1-4 July 2013 in Brisbane. The selected high school students gave up a week of their holidays to attend the residential program, which aimed to showcase the study and career options the students have in science, technology, stakeholder engagement, urban development and planning. In a half-day workshop hosted by Parsons Brinckerhoff, the attendees were given the opportunity to experience a professional working environment. They participated in hands-on, science and technology-based activities with the visualisation team and members of the firmâ&#x20AC;&#x2122;s Professional Growth Network. They learnt about different career pathways and honed their networking skills as they queried both industry leaders and graduates. The Winter School recognises and aims to address two major industry challenges: how to lift participation in science, technology, engineering and maths careers; and how to encourage more Indigenous Australian students into higher education and ultimately into science and infrastructure-related careers. For Parsons Brinckerhoff, the Winter School is one way that the company pursues its Reconciliation Action Plan objectives; building respectful relationships and creating ongoing opportunities for greater education and employment for Indigenous Australians. While it may take a while to prove conclusively that the approach is working, the Winter School is off to a solid start. To ensure the School continues in 2014 and free of charge for participants, corporate sponsors are sought. Gerard Ryan Regional Director for Queensland Parsons Brinckerhoff

SID Winter School student participating in the Parsons Brinckerhoff visualisation activity Photo courtesy Parsons Brinckerhoff

Parsons Brinckerhoff Regional Director, Gerard Ryan discusses stakeholder engagement with SID Winter School students Photo courtesy Parsons Brinckerhoff

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

Consult Australia National Office T: (02) 9922 4711 F: (02) 9957 2484 E: info@consultaustralia.com.au W: www.consultaustralia.com.au

Last updated: August 2013

For more information on membership, contact Consult Australia’s National office on (02) 9922 4711 or via email on info@consultaustralia.com.au

Region illustration map Image courtesy of AECOM

G21 Public Transport Summit Photo courtesy of AECOM

Our industry Consulting Matters

G21 Public Transport Strategy: An exercise in going beyond ‘have your say’ G21 - Geelong Region Alliance (G21) is the formal alliance of government, and business and community organisations working together to improve the lives of people within the Geelong region across five member municipalities—Colac Otway, Golden Plains, Greater Geelong, Queenscliffe and Surf Coast. The G21 transport pillar wanted to develop a public transport system that meets community objectives and which builds on and complements a suite of recent strategic transport and land use studies in the Geelong region. AECOM’s communications and community team has been keen to move beyond consultation with communities to a collaborative, co-created approach to identifying solutions. When the G21 Public Transport Strategy opportunity occurred, we viewed the project as an ideal opportunity to move beyond ‘have your say’ to a deliberative model of engagement, the focus of which is to find out what the community wants while including negotiables and nonnegotiable elements in the discussion. By building understanding of the challenges and opportunities, the community can be involved in making informed decisions in collaboration with the project proponent— moving beyond a position of ‘me to we’. OUR APPROACH AECOM used the World Café structure to host five regional forums. The forums were three hours long and based upon four strategic high level questions, which were developed so participants would be encouraged to think about public transport strategy from a regional and strategic level. Guest speakers were recruited to either provide an alternative view, a specific lens (e.g. disability access), an innovation, or a challenge to the participants. The recruitment

for the World Café forums was based upon the third principle (i.e. one-third invited guests, one-third self-selected and one-third comprised of participants who would not normally attend). AECOM also established the Motivating Engagement Team (MET), which was comprised of communications and engagement specialists from G21 and the Councils. The MET had regular phone and/ or Skype meetings to discuss the forums, particularly the recruitment of the participants who would not normally attend. AECOM developed an engagement toolkit, which supported MET members in their recruitment of participants and forum organisation. An online engagement tool Bang the Table was used to generate broader community input. It included a survey, a discussion forum (using the same questions posed in the forums), a registration portal and access to other public transport related information. THE GEELONG SUMMIT This process of extensive collaboration culminated in a Geelong summit, which was held to present the results of the forums and to synthesise the findings to a point where participants were able to prioritise options for the delivery of public transport for their regions. To support effective discussion around the tables, 24 volunteer table hosts were recruited and trained. Sixty-five people attended—of whom 50 per cent were invited and 50 per cent were self-selected. Two guest speakers provided different points of view and technology was used in order to support people to see what decisions and priorities were being set in the room in real time. Social media was utilised with tweeters busily transmitting comments and a team capturing vox pops of participants’ thoughts and experiences.

The benefit of the deliberative engagement approach was an informed community that was challenged to consider priorities and trade-offs while deliberating on solutions (going beyond wish lists and moving from ‘me to we’). The approach supported an engaged community that ‘owned’ the decisions made and a project outcome that achieved the client’s objectives. Fran Woodruff Facilitator and Senior Consultant AECOM

Consulting Matters Our industry

Linking Canberra to the lake City to the Lake was a key initiative of the Australian Capital Territory (ACT) Government. A multi-disciplinary team, led by the ACT Office of the Coordinator General, and including SMEC, Hill Thalis, JILA, Macroplan Dimasi and Tania Parkes Consulting, has conceived a long-term framework for the transformation of Canberra’s city centre. The team’s framework was focussed on the currently undeveloped broad southern flank of the city centre, from the West Basin to Anzac Parade, and included Parkes Way, London Circuit, Canberra Olympic Pool, the existing convention centre and large surface car parks. With the objective of creating a vibrant public waterfront, the development will enhance public access to and use of Commonwealth Park, Lake Burley Griffin and major national and regional educational and cultural institutions such as Australia National University and the National Museum. The waterfront will become the centrepiece of a mixed use precinct with over 1 million square metres of floor area for up to 20,000 new residents in West Basin, City Hill and Constitution Avenue. The team’s framework identified and reserved potential locations for a replacement convention centre (Australia Forum), a 30,000 seat rectangular stadium and a regional aquatic centre. The project also provided a lakeside anchor for the first stage of the light rail implementation, the Northbourne

Corridor development and the Constitution Avenue upgrade. The existing ‘lake side’ of Griffin is truncated and lacking definition. Under the team’s development plan, the street system will be transformed to connect the city centre to the shore, as originally intended. This will improve local pedestrian, cycle, vehicle and public transport opportunities. The expanded street system will create 25 new (and redefined) undeveloped urban blocks to accommodate new urban housing, workplaces and retail opportunities. Civic expansion and the new lakefront will create major shopping opportunities. The key blocks on both sides of London Circuit have significant potential for both a large-scale shopping centre and street edge activation. SMEC’s Regional Manager ACT, Sybille Tildsley said, “SMEC is excited to be involved with the City to the Lake project. The project is integral to realising the potential, and safeguarding the future expansion and development of Australia’s capital city.” The City to the Lake project is integral to the future growth of Canberra (and the surrounding regions); it incorporates longterm strategic planning which has the potential to transform the city. It is expected that the project will result in urban density which will both rejuvenate the city and underpin an improved public transport system.

In developing the City to the Lake framework, the project team integrated high quality urban and innovative engineering designs to remove physical barriers, including arterial roads and roundabouts that curtail easy pedestrian access to the lake. Removing these barriers, and creating an accessible public domain that gently flows from the city centre to the lake, is expected to encourage the general public to use the lake and visit nearby national icons. The project follows on from investigations and community consultation undertaken by the ACT Government and National Capital Authority in 2007; the results of which were presented in Time to Talk Canberra 2030. City to the Lake recently won the Policies, Programs, Concepts (Large Scale) category award in the 2013 Australia Award for Urban Design, hosted by the Planning Institute of Australia. The premier award for urban design achievement, the award acknowledges the critical role good urban design plays in the social, economic and environmental development of cities and towns. On receiving the award, the project team was congratulated on the way in which the design seamlessly links the city centre to the lake. The jury noted how the project extends Canberra’s historical setting in a way that is appropriate to a modern growing city. Sally Wood Corporate Marketing & Communications Coordinator SMEC

Our industry Consulting Matters

Artist impression of City to the Lake project Images courtesy of SMEC

Consulting Matters Our industry

Sunshine Coast University Hospital aerial view from North East Photo courtesy Lend Lease

Sunshine Coast University Hospital main entrance and bus transfer Photo courtesy of Exemplar Health

Our industry Consulting Matters

Sunshine Coast University Hospital In 2012, Exemplar Health, comprising Lend Lease, Spotless Group, Capella Capital and Siemens was successful in their bid to design, build, finance and maintain the new Sunshine Coast University Hospital (SCUH). The $1.8 billion public tertiary teaching hospital is Queensland’s first health PublicPrivate Partnership (PPP) project and will be built to a four star green star rating. The first stage will be completed in 2016 and will provide over 150,000 square metres of hospital space and a multilevel car park incorporating 3,500 car spaces. 5DQS MODEL MEASUREMENT Early in 2013, Mitchell Brandtman was engaged to advise the benefits 5D Building Information Modelling (BIM) could provide to the procurement and construction of the hospital project. The outcome was the delivery of an innovative solution that allowed efficient and effective real-time quantification and costing of revisions and design changes. This solution unlocked a benefit that due to time, manpower, and cost considerations, would have been inefficient to provide to project participants operating in the traditional 2D realm. In a timeframe of four weeks, the small collaborative team undertook a process of model validation, mapping, and revisioning on stage one which included measuring over 60,000 cubic metres of concrete, 800 tonne post tensioning, 4,500 tonne steel reinforcement and 200,000 square metre formwork for a 150,000 square metre hospital and a 95,000 square metre carpark. The 5DQS team’s technology that interfaces with 3D models, calculated quantities and created dynamic links between Revit and Industry Foundation Classes (IFC) model information, rate libraries and estimate templates. The dynamic links meant that the

estimates were able to be calculated and recalculated on a weekly basis, every time the model information was revised. When tender packages were released, the sub-contractors were provided a CostX viewer containing the most recent 3D model, which enabled them to view each trade package quantity into the model from the quantity measurement. This process greatly reduced the reliance on 2D paper drawings and has given the subcontractors a better understanding of their tender requirements by being able to easily visualise their components of the project and, by physically being able to rotate the model, view construction heights and confirm quantities. Lend Lease Senior Cost Planner, Tony Avsec said that the 5DQS skills have allowed Lend Lease to solve one of the industry’s pressing issues. “The desire is to tender on the latest documents still being worked on while Bills of Quantities are prepared, being able to rapidly update the final Bill of Quantities to the final BIM model and communicating those changes to the wider team with simple 3D model overlays that highlights what’s changed. By embedding links between the Bills of Quantities and the model, tenderers can quickly understand the scope of a trade package, de-risking the package, allowing more competitive pricing.” Direct benefits throughout the 5DQS consultancy period have included a significant reduction in time and cost, and access to real time information for decision making. Indirect benefits have come from increased knowledge, identification of clashes in the design phase and the ability to engage with contractors and trades to provide certainty. The SCUH will be the centrepiece in a network of hospitals within the Sunshine Coast and Southern Wide Bay Burnett

region. With construction having commenced in 2012, stage one of the project incorporates 450 inpatient beds due for completion by 2016 and expanding to 738 inpatient beds by 2021. Construction at its peak is set to provide up to 2,000 jobs for construction workers.

David Mitchell Partner Mitchell Brandtman 5D Quantity Surveyors

Consulting Matters Industry comment

Planning NSW â&#x20AC;&#x201C; engaging in the new system

New South Wales is poised to get a new planning system, and with it a transformation in how the community participates in strategic planning. The vision for community participation outlined in the proposal is an exciting one for community participation practitioners who have often stood on the sidelines and wished there was another way. Under the new approach, planning authorities and communities are required to come together at a much earlier stage, to shape the way their region or sub-region will grow and change over the next 20 to 30 years. Other changes include the requirement to publish planning decisions and the reasons for them, as well as how community feedback has been taken into account. As with most opportunities however, there are challenges that need to be overcome, not least of which is the scepticism and lack of trust which is a feature of engagement in the current planning system. There will also need to be support provided to local councils and other planning authorities who donâ&#x20AC;&#x2122;t necessarily have the resources to do extensive engagement. Engagement will be key to our success, along with a commitment to overcoming the obstacles and sharing and learning from each other. Sara Wilson Associate Director, Communication and Community AECOM

Why diversity targets are good for business

The Workplace Gender Equality Agency (WGEA) has long called on employers to set gender diversity targets, in order to reap the benefits of a diverse workforce, including attraction and retention of top talent. Unlike mandatory quotas that are imposed on organisations in countries such as Norway, voluntary targets are set by an organisation with regard to its own unique circumstances, so that they are realistic and achievable. Measuring and transparently reporting progress against targets assists in promoting the necessary cultural and structural change to ensure sustainable improvement in gender representation over time. Targets focus effort and encourage momentum, and can send a clear message that gender representation is a central business issue. However, setting a target for gender composition is more than just picking a number out of thin air. Targets need to be informed by an analysis of baseline data such as turnover and recruitment figures. They need to be measurable and timeframed and driven from the CEO down. Given businesses are already familiar with the process of setting performance targets in areas such as profit and loss, safety, and client service; if done properly setting achievable gender diversity targets should be relatively straightforward for most employers. Once the target has been set, the organisation can go about implementing focused gender-related initiatives to achieve improvements in gender composition. Helen Conway Director Workplace Gender Equality Agency

Gender target setting tool

The Workplace Gender Equality Agency has developed a gender target-setting tool to help employers set and meet gender diversity targets within their organisations. The toolkit includes a set of guidelines and a calculator and can be accessed from the Workplace Gender Equality Agencyâ&#x20AC;&#x2122;s website.

Industry comment Consulting Matters

EASY CHOICES! CONSULT AUSTRALIA IS ON YOUR SIDE

THE LATEST PATHWAY TESTIMONIAL SLR Consulting Australia’s range of environmental engineering and scientific services has broadened considerably over the past several years. As we continue to grow, new services are being introduced, new offices open and other consulting practices are being acquired. Our overseas work on significant international projects has also increase markedly. As a consequence, greater focus on managing the technical and commercial risks of our multi-disciplinary service delivery was required. Significant changes to our Professional Indemnity (PI) Insurance cover became necessary. We realised that professional risk management advice well beyond that provided by a normal PI broker was required – we needed an insurance advisory service with considerable consulting industry experience.

BRIC

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

Bovill Risk & Insurance Consultants

To get a quote please visit: www.consultaustralia.com.au/pipathway.aspx

Consult Australia’s PI Insurance Pathway gives Consult Australia members access to the PI market through a Panel of Brokers selected by Consult Australia. Consult Australia is providing a referral service only and is not providing any form of financial advice or offering a financial product. Consult Australia does not guarantee the value, price and terms of cover that may be received from any member of the Panel of Brokers. Any agreement entered into through use of the PI Insurance Pathway will be expressly between the Panel Broker and the Consult Australia member firm.

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• Liability of the Superintendent

Facilitated by Mark Griffith - 25 years experience in Senior Management and Project Management within the heavy engineering construction sector including building, rail, petrochemical, mining and materials handling, minerals processing, infrastructure and renewable energy projects. Member Price: $1,650 and Non-Member Price: $2,200

• Insurance issues Facilitated by Tony Horan - one of the most knowledgeable and experienced barristers working in the construction industry in Australia. Only available as an in-house program. Please contact education@consultaustralia.com.au for a proposal.

For more information, including course dates, visit www.consultaustralia.com.au or contact Alexia Lidas on 02 9922 4711 or education@consultaustralia.com.au