2015 June Consulting Matters by Consult Australia

WINTER 2015

More for Less Minimum design for maximum output

100 Days into our Campaign for Better Procurement

UNCOVER YOUR BEST

OPPORTUNITIES FOR GROWTH.

Introducing BST10 An integrated business management software solution designed to help you grow your consultancy.

Fuel your company’s growth with a process-driven business management software solution built specifically for the world’s leading architects and engineers. Our comprehensive business development tools help your firm streamline the lead identification, pursuit, and bidding process — giving you the visibility needed to strategically pursue the projects that will contribute the most to your bottom line. © BST Consultants, Inc. All rights reserved. BST Global logo is a trademark of BST Consultants, Inc.

Visit BSTGlobal.com today or call BST (Australasia). +61 2 8310 4013

Consulting Matters

November 2014

CONTENTS

Strategy for Diversity and Inclusiveness

14 32 Australia Post puts an environmental stamp on headquarters Industry updates Industry updates

What’s happening in Consult Australia From the President

From the CEO

Champions of Change

More for Less: 100 Days into our Campaign for Better Procurement

State Division updates

Getting more for more Industry comment

How government policy on super can have downstream affects for infrastructure

More for less: let’s look inside our firms too!

Protecting your business Liability for Subconsultants

Corporate social responsibility AECOM partners with the Red Cross to improve disaster resilience

Minimum design for maximum output - the psychology of project development

More for less or how to optimise business outcomes through a modern asset management approach

Not a member of Consult Australia?

Features Champions of Change endorse Strategy for Diversity and Inclusiveness

Getting more for more

Project case studies Creativity combines with know-how to provide more for less

Australia Post puts an environmental stamp on headquarters

To find out more about how your firm can benefit from membership contact Consult Australia’s Business Development Manager, Jennifer Kelly on (02) 8252 6712 or email membership@consultaustralia.com.au www.consultaustralia.com.au

Consulting Matters

Industry updates

Industry updates NEW APPOINTMENTS Waterman 2015 and beyond After 21 years as Chairman of Waterman (Australia) John North has retired with effect from May this year. With John’s departure Waterman’s new senior management team comprises of Ben North as Managing Director and Richard Nicoliello as Director of Operations. Both Ben and Richard have a long record of service with Waterman having been with the company for 16 and 15 years respectively. During that time Ben has spent the past eight years as Director, working in the Sydney, Brisbane and London offices while Richard has been a Director for the last six years in the Sydney office. Client focus facilitates NDY management restructure Norman Disney & Young’s (NDY) recent shareholder’s meeting has seen the promotion of a number of Directors to strategic positions. Sam Aloi (top) has been promoted from Melbourne Office Manager to the role of Australian Regional Director, with responsibility to overview the strategic direction and operations of NDY’s eight Australian offices with fellow Director and Perth Office Manager Alan Edler appointed as a second Australian representative on the NDY group Executive. Tim Spies (bottom) has been appointed as the incoming Sydney Office Manager and NDY board member Patrick Fogarty is now Director, Clients & Strategy, with fellow Director George Balales heading up the newly created role of Director, Engineering & Operations. SLR appoints Peter Smith as Technical Director SLR Consulting has recently appointed Peter Smith as its Technical Director in the Environmental Management, Planning and Approvals team. Peter has been responsible for managing and overseeing environmental management matters on a wide range of successful mining, industrial and power and energy projects within the public and private sectors over the past 20 years.

Hyder appoints Rob Dagnall as Business Leader for Building Services Group Rob Dagnall has been appointed to the position as Business Leader - Building Services Group in Hyder Consulting’s Australia Pacific region. Rob joins Hyder from his previous position as MEP and Specialisms leader and Technical Director for Aecom. Rob is a Mechanical Services Engineer with over 20 years’ experience in Europe, Asia, Australia and the Middle East. He has held key positions in or led the Building Services design teams of several high profile, Commercial, Mixed-Use, Healthcare and Transportation projects.

status. These are organisations which not only record high employee engagement scores but also deliver outstanding people practices. The Aon Hewitt survey was completed by 329 employees at WGE. In Aon Hewitt’s Best Employers study for 2014-15, 148 organisations and over 92,500 employees participated. “We did not start this journey to win awards. We did it because we really wanted to make this a great place to work”, WGE’s CEO José Granado says.

Hyder appoints Andrew Kyriacou as Director for Rail Andrew Kyriacou has been appointed to the position of Director for Rail in Hyder Consulting’s Australian Transport team. Andrew joins Hyder from his previous position as General Manager for Rail, Road and Freight Group at Vic Track leading capital projects throughout Victoria and freight logistics & operations at the Dynon rail precinct. Andrew was previously responsible for building and leading the Victorian rail engineering and project management team at Parsons Brinckerhoff as Rail Executive for VIC/SA/NZ. Jon Clements to drive strategic reform as 76th National President of Australian Institute of Architects Jon Clements has been inaugurated as the 76th National President of the Australian Institute of Architects at their Annual General Meeting. Melbourne-based Clements is a founding director of multi-award winning practice Jackson Clements Burrows Architects (JCB) and takes up the role following nine years on the Victorian Chapter Council and three years on National Council including a tenure as the Victorian Chapter President, 2012-2014. Ken Maher, former NSW Chapter President and 2009 Institute Gold Medallist, has been appointed President Elect.

Editor Kisanne Dulin

President Matthew Harris

Chief Executive Officer Megan Motto

Director – Policy & Government Relations Jonathan Cartledge

Director – Marketing & Membership Kisanne Dulin

Senior Advisor, Policy & Government Relations Robin Schuck

Business Development Manager Jennifer Kelly

Manager – Events & Education Alexandra Hopper

Corporate Designer Voltaire Corpuz

OTHER NEWS Congratulations to Wood & Grieve Engineers (WGE) for achieving Aon Hewitt “Best Employer” status for the 4th year in a row! Each year an elite group of organisations across Australia and New Zealand achieve Aon Hewitt Best Employer accreditation

Editorial submissions kisanne@consultaustralia.com.au

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

Consulting Matters

June 2015

For consulting firms in the built and natural environment by Phil Ruthven

On sale now To purchase your copy go to http://bit.ly/2015snapshotandforecast

Consulting Matters

Industry updates

From the President chain and the demonisation of risk in the construction and infrastructure sectors. This has resulted in risk being misunderstood, underestimated, and poorly managed (usually through arbitrary shifting it via the contract onto other parties). It is critical that we improve our productivity as a sector, yet our report demonstrates clearly that these trends, and the procurement behaviours that are resulting from them, are only serving to add costs to projects and subsequently the community through lost GDP.

As a quantity surveyor, much of my professional life has been focused on the numbers. Getting them right is critical to restoring confidence in the construction industry’s ability to deliver. But as my career has progressed, I have come to realise that getting the people and behaviours right is more of a game changer when it comes to project success. This is why Consult Australia’s campaign around our More for Less report is so important. For decades now, the shifting sands of the delivery model of major projects has seen a number of worrying trends; the gutting of capability from public sector clients, the segregation of proponents in the supply

This is why our industry needs a massive mentality shift from our business as usual model. Typically “more for less” translates for the consulting sector as more hours and risk for less compensation. The focus on commoditisation of hours in a sector that delivers its prime value through complex thought and problem solving is damaging to sustainable business models, but more importantly, crushes the spirit of innovation and creativity which makes our industry a great place to work for young professionals. The future is in good hands…so long as they stick around. We need to consistently challenge and expand on the understanding of value for money which is still too often seen as lowest cost…resulting in a race to the bottom. In the same way that industry is starting to appreciate the need for a structured methodology for a broader cost benefit analysis for substantial infrastructure projects (to assess benefits such as social cohesion and improvement, long term economic uplift, national reputation and other intangible factors), so too must we consider the bigger picture of project outcomes when embarking on the procurement process.

So it’s not just the added direct costs to projects due to risk premium pricing or reduced competition (which the report measures) that we should be worried about. It’s the consequential breakdowns in relationships and adversarial behaviours that add direct costs through miscommunication (at a minimum) and disputation (at the extreme), as well as intangible outcomes such as loss of reputation and increased stress/reduced happiness (which this report does not measure) that should concern us. We should be concerned because it stifles innovation and productivity improvements in our industry…the economics are important. But even MORE important in my opinion is that it makes us a less attractive career option for bright young minds looking for future work opportunities. If we are to be an industry of first choice for young graduates, we need to establish more productive, collaborative and innovative cultures in our businesses and on our projects. This will never happen while we continue to promote the opposite through the risk shifting blame game that our current procurement and contract regimes imply.

Matthew Harris President

For decades now, the shifting sands of the delivery model of major projects has seen a number of worrying trends; the gutting of capability from public sector clients, the segregation of proponents in the supply chain and the demonisation of risk in the construction and infrastructure sectors.

Consulting Matters

From the CEO Our program of activity will be geared towards tangible outcomes, and we will be accountable to our members to achieve them. We will face a wall of cultural change and perverse incentives, but the first step of making the case for change is now complete. Perhaps it was unfortunate that the GFC and resulting downturn was not severe enough to wake us from our malaise. It seems creativity and leadership are best bought to the fore when you have your back against the wall.

Australia’s government and economy find themselves at a crossroads. Having ridden on the coat tails of political reformists of the 80’s and 90’s, a period coinciding with a 20 year resources boom and the resulting economic prosperity, we now find that what was working in the past is unlikely to help us in the future. We know that we need to embark on a fundamental reform program to affect seismic shifts in our national productivity, but the pathway to get there is not so clear. Albert Einstein once said “The definition of insanity is doing the same thing over and over again and expecting different results”. Yet we still expect that we can deliver better value for money and productivity outcomes on projects in the building and infrastructure sectors using largely the same procurement attitudes, processes and documentation that we have been using for the last 50-100 years. There have been countless reports on this over the last 30 years (and more), many of them saying the same or at least similar things, yet the cultural inclination for status quo has left us in a quagmire. We know there is waste, we know what the challenges are, we know there is a better way of doing things, and yet we struggle to make any real progress. Like the frog in the frying pan, we are yet to encounter the catalyst for real change.

The UK, for example, supported a construction industry reeling from the European slowdown by looking at the problem from a fresh perspective. Rather than seeking to boost a struggling industry through pump priming alone, they set themselves a momentous productivity target, and then got to work figuring out what key initiatives would get them there the quickest, resulting simultaneously in a more productive, attractive and sustainable industry. Mandating BIM means there will be some pain in the industry for laggards that struggle to adapt, but by and large the mid to long term benefits will be faster, cheaper, better quality buildings and infrastructure, as well as the development of a critical mass of superior expertise that becomes a massive generator of export dollars. In Australia we have seen no such blood on the floor…yet. But we are aware of the lead indicators, as well demonstrated through the 2015 Intergenerational Report. What we need is step change in the way we do things - radical innovation (like disruptive technology and business models) rather than incremental change which never seems to stick beyond political cycles. But to achieve this we need vision and leadership. Consult Australia is incredibly proud to have commissioned our More for Less report (featured on page 7), which not only quantifies the costs associated with current inefficient procurement methodologies (to consulting firms, projects and the broader Australian economy), but importantly offers practical suggestions for starting on the path

of reform. We will be producing more work in this area over the coming months, so stay tuned. The task ahead of us now is to take this report and its recommendations and ensure that they become more than just a dusty reference document. We need to affect action. Our program of activity will be geared towards tangible outcomes, and we will be accountable to our members to achieve them. We will face a wall of cultural change and perverse incentives, but the first step of making the case for change is now complete. The Australian government is facing a number of reform challenges, such as the review of the Taxation System. They too will need to make the case for change. This is especially true in an area which is: a) hardly a sexy subject of the average Aussie; b) being contemplated within a context of skepticism and mistrust of the political process and Politicians in general; and c) a consequence of two decades of uninterrupted economic growth which has resulted in a history of “no losers” policy reform leading to a sense of entitlement and compensation. Communication and leadership will be critical. Radical reform can be achieved. But it needs to be substantiated by clear evidence and communicated with sophistication and simplicity simultaneously. Your association is up to the task.

Megan Motto Consult Australia

Consulting Matters

What’s happening at Consult Australia

Champions of Change Signatories to the Charter of the Consult Australia Champions of Change

Charter of the Consult Australia Champions of Change Our role as leaders, both individually and collectively, is to intervene and disrupt the norm, and make a material change to the unacceptably low levels of women in leadership in Australia’s consulting industry. Since the inception of the Champions of Change over two years ago, we have learned much about the issues facing women in our industry. Whilst our individual companies may have made some progress, as an industry our progress toward gender equity is still unacceptably slow. Being a Champion of Change requires time, investment and above all commitment. To bring about the change we desire we need to work together, step up and lead with visible action.

Lara Poloni, AECOM Australia Pty Ltd Chief Executive

Peter Bailey, Arup Chair and Chief Executive Officer - Australasia Region

James Wright, Beca Pty Ltd Managing Director – Australia

Will Wright, Douglas Partners Pty Ltd Principal

Phillip Duthie, GHD Pty Ltd General Manager - Australia

Adam Kilsby, Golder Associates Managing Director and Principal

Greg Steele, Hyder Consulting Pty Ltd Managing Director - Australasia

Michael Shirley, Jacobs Group (Australia) Pty Ltd Group Vice President, Infrastructure and Environment

Mark Bruzzone, MWH Managing Director, Government & Infrastructure, Australia

Stuart Fowler, Norman Disney & Young Chief Executive Officer

Melvyn Maylin, Opus International Pty Ltd Managing Director Australia

John Pitt, pitt&sherry Managing Director

Matthew Harris, NSW Managing Director Rider Levett Bucknall

Hari Poologasundram, SMEC Australia Pty Ltd Chief Operating Officer, Australia and New Zealand

Bob McGowan, URS Australia Pty Ltd Managing Director Australia

Andrew Mather, WSP | Parsons Brinckerhoff (WSP) Managing Director: Property Environment & Resources

We agree to take the following actions to achieve the change we all desire:  Agree a shared purpose, clear priorities and publicly commit to using our individual and collective leadership and resources to advance gender equity and women in leadership  Work together to create peer pressure – to build our network of consulting CEO champions  Through the Champions of Change network, share experiences, best practice, data and strategies for advancing gender equity and women in leadership  Work together to identify and implement visible high impact actions that move the dial with respect to women in leadership in our industry  Lead with action and advocacy, working within our organisations and collectively to: • Sponsor and/or mentor women into leadership positions • Partner with schools and universities to raise the level of women in our industry • Encourage a greater focus on STEM subjects in schools  Reflect on our own leadership, holding ourselves accountable for the results we achieve

Taking their lead from the Founding Male Champions of Change established by Elizabeth Broderick (Australia's Sex Discrimination Commissioner), a group of Consult Australia's large member firm CEO's formed the Consult Australia Champions of Change in 2012, to take collective action in an attempt to substantially shift the dial with regards to the participation and promotion of women in our industry. Recognising that in the war for talent, our sector needed to up its game in attracting and retaining women, the group formed to share best practice, learn from experts and lead by example. Diversity, like safety, is a leadership issue. It is therefore critical that the leaders in the business community (mostly male) own this issue

as a driver of business success. Importantly, it is about changing workplaces to make them more inclusive, rather than remediation training for women. The Champions are now in their third year, and under the Chairmanship of Greg Steele, Managing Director of Hyder, have recently strengthened and renewed their Charter, aiming to drive change through strategic action and personal accountability. They will shortly be developing a benchmark report to measure their individual company progress in a range of areas of activity. Consult Australia is proud to be part of this important initiative and support a range of best practice activities in this area.

What’s happening at Consult Australia

Consulting Matters

More for Less: 100 Days into our Campaign for Better Procurement Consult Australia’s More for Less campaign, and our flagship report commissioned from Deloitte Access Economics’, The Economic Benefits of Better Procurement Practices, was launched in Parliament House in Canberra with Assistant Infrastructure Minister The Hon. Jamie Briggs MP and attended by 17 Members of Parliament from all major parties alongside representatives from the Department of Infrastructure, the Australasian Procurement and Construction Council and senior industry leaders. More for Less gives definitive answers as to how much extra public sector clients pay for less desirable procurement practices – including onerous contract terms – that our industry are frequently faced with. The report also offers concrete recommendations for improvement, which together with Consult Australia’s existing policy platform, provide a foundation for longstanding reform. Generating widespread media coverage the full report and summary version have now been downloaded over 2000 times: a great testament to the interest and value placed on Consult Australia’s thought leadership in this space.

The first 100 days of Consult Australia’s More for Less campaign has seen the report launched at events across the country which have served as the foundation for further engagement at the highest levels of government and with client agencies.

Advocacy across Australia In New South Wales: • Andrew Constance MP, Minister for Transport and Infrastructure; • Michael Daley MP, Shadow Treasurer together with Ryan Park, Shadow Minister for Transport and Infrastructure; • Health Infrastructure NSW; • Office of Rob Stokes MP, Minister for Planning; • Greg Pearce MLC, Member of the Legislative Council; • Office of the Small Business Commissioner; • Sydney Water;

OUR SEVEN RECOMMENDATIONS FOR BETTER PROCUREMENT: To improve public sector procurement outcomes: 1) Set up procurement teams with a mix of practical, legal and procurement experience.

• Department of Justice and Attorney General; • Department of Finance and Services; and • Sydney Opera House.

In Victoria:

2) Reallocate procurement resources towards better specification of project objectives, including early engagement with industry, identifying end user needs, and re-testing business case objectives.

• Jacinta Allan MP, Minister for Public Transport, together with Department of Economic Development, Jobs, Transport and Resources;

3) Remove contract clauses that don’t stack up, whether from a cost-benefit perspective, or through the behaviour shaped by the inclusion of those terms.

• The Department of Treasury and Finance;

4) Develop and apply limited liability guidelines to assist agencies with ensuring that liability requirements do not add unnecessarily to project costs.

• David Southwick MP, Shadow Minister for Energy and Resources, Innovation, and Renewables;

5) Verification of brief information by government to avoid costly duplication by tenderers.

• Municipal Association of Victoria; VicRoads;

6) Streamline compliance processes to reduce bid costs. 7) Evaluate and adapt procurement frameworks to encourage innovation, including being open to new delivery models, early market sounding options and continuing to provide opportunities for unsolicited proposals. Consult Australia has long been engaged in the policy discussion about improving procurement practices around Australia. More for Less shows reforms to procurement will not only support our industry, but will yield benefits for public sector clients and ultimately the broader public who use that infrastructure. It is critical that the procurers of public projects are aware of these benefits, and factor them into their decisions as our industry works to develop tomorrow’s infrastructure.

• the office of Treasurer Tim Pallas; • the office of Lily D’Ambrosio MP, Minister for Industry, Energy and Resources;

• Ryan Smith MP, Shadow Minister for Roads and Infrastructure; • Regional Development Victoria; and • Major Projects Victoria.

In Queensland: • Office of the Deputy Premier and Minister for Transport, Minister for Infrastructure, Local Government and Planning and Minister for Trade Trade Jackie Trad MP; • Rob Molhoek MP, Shadow Minister for Housing and Public Works; • Housing and Public Works Procurement Transformation Team; • Chief Procurement Office and Program Management and Delivery, Transport and Main Roads; • Jennifer Howard MP, Member for Ipswich; and • Trevor Watts MP, Member for Toowoomba.

Consulting Matters

What’s happening at Consult Australia

More for Less The economic benefits of better procurement

Seaford Rail Extension Photo courtesy of Aurecon

Around $43 billion is invested in public infrastructure each year. Around 53% is procured from the private sector, and professional services contribute almost 20% to the overall value of projects. As budgetary constraints compete with the public demand for enhanced infrastructure provision, the need for each dollar of public funding for infrastructure projects to go further is greater than ever. The procurement reform described in this report presents an opportunity to make this happen. There are big opportunities for more efficient procurement of professional services for public sector built environment projects. With improvements in briefs, delivery models and contracts, firms can:

Consult Australia engaged Deloitte Access Economics to undertake a study into the economic value of better procurement practices by public sector agencies undertaking infrastructure procurement. This document is a summary of the study’s key findings.

• Reduce the costs of projects by 5.4%, comprised of: o direct price increases of 3.6%; o indirect price increases of 1.5% from reduced competition; and o inefficient costs of bidding worth 0.3% of project prices. • Reduce delays to projects by 7%; • Improve the quality of projects by 7%. By implementing the recommendations of this report, government has the opportunity to achieve economic benefits of around $5.1 billion in additional GDP between 2015 and 2030 (real $2014).

DOWNLOAD THE REPORT LONG FORM http://bit.ly/betterprocurement-longform SHORT FORM http://bit.ly/betterprocurement-shortform

Download the full report at www.consultaustralia.com.au

In Nothern Territory: • Dave Tollner MP, Treasurer and Minister for Lands and Planning, Mines and Energy • Dave McHugh, Chief Executive, Department of Infrastructure In South Australia:

• Brendan O’Dowd, Chief Executive, City of Darwin

• South Australian Government Financing Authority; • Stephen Marshall MP, State Opposition Leader;

• Ewan McKenzie, Industry Engagement Officer, NT Power and Water Corporation

• Ian Nightingale, Industry Participation Advocate;

• Peter Chandler, Minister for Transport and Infrastructure

• SA Water; • Local Government Association of South Australia; • Department of Planning, Transport and Infrastructure; and • the Office of Industry Participation Professional Services Advisory Panel.

In Western Australia: • Department of Main Roads; • Office of Building Management and Works, • Department of Finance; and • the Western Australian Local Government Association.

In Tasmania: • Senator David Bushby; • TasWater; • and the Department of State Growth.

In addition to high-level and detailed meetings across government we have held additional private sector engagement on our key recommendations advanced through More for Less. These are ongoing and include productive discussions with senior representatives from: Society of Construction Lawyers; Laing O’Rourke; Lend Lease; Civil Contractors Federation; the Australian Sustainable Built Environment Council; the Australian Construction Industry Forum and Leighton Holdings. The advocacy outlined above has been extensive and represents just the start of our campaign. The majority of these meetings have generated increased awareness of the challenges our industry faces in dealing with poor procurement processes, and the opportunity for governments to get better value for money from every dollar they are spending. We are confident that this advocacy will translate into real wins for our industry and better procurement in the long-term. We encourage you to support the campaign, raise awareness and ensure your firm is an advocate for the recommendations we are taking forward with government. For more information on our More for Less campaign, contact Robin Schuck, Senior Advisor Policy and Government Relations.

What’s happening at Consult Australia

Consulting Matters

And in Other Policy News: While Consult Australia’s More for Less campaign has dominated our advocacy across governments in the first half of this year, those other key issues critical to our members continue to be addressed: FEDERAL BUDGET 2015 Consult Australia’s response to the Federal Budget highlighted the important package of measures for small firms, but noted the lack of new funding for infrastructure. Child care presented a mixed package with significant impacts for firms who will be forced to redesign their parental leave arrangements in lieu of the Government’s approach to ‘double-dipping’. A new infrastructure loan facility for Northern Australian investment may generate up to $5b in additional funds, and presents an opportunity for Consult Australia members to influence the design of a Northern Australia infrastructure pipeline as part of the Government’s whitepaper process. Consult Australia issued a Media Release cautiously welcoming the Opposition’s response to the Budget, in particular their commitment to wipe the HECS debt of 100,000 engineering students, to strengthen Infrastructure Australia, and to prioritise a stronger role for the Federal Government in our cities. AUSTRALIAN INFRASTRUCTURE AUDIT The much anticipated Australian Infrastructure Audit was released by Infrastructure Australia and provides a new strategic approach to assessing our national infrastructure needs. Consult Australia’s media release (Congestion yet to squeeze more dollars for infrastructure) welcoming the Audit can be read here. The Audit examines the drivers of future infrastructure demand, particularly population and economic growth, provides an assessment of the value-add, or Direct Economic Contribution of infrastructure; considers the future demand for infrastructure over the next 15 years, and delivers an evidence base for further gap analysis, long term planning and future investment priorities. Infrastructure Australia is inviting public comment on the findings from the Audit. Your ideas and suggestions on how to solve the issues raised will help to inform the development of the 15 year Australian Infrastructure Plan. Consult Australia will be developing our submission in the coming weeks. INQUIRY INTO ROLE OF REGIONAL CAPITALS IN AUSTRALIA Consult Australia was pleased to support the Australian Sustainable Built Environment Council submission to the Senate Rural and Regional Affairs and Transport References Committee Inquiry into the role of regional capitals in Australia. The Inquiry is considering current demographic trends across regional capitals, current funding, investment challenges and opportunities for growth. Consult Australia emphasised support for stronger investment across all our major cities based on broad cost-benefit analysis, smart urban design and good governance. Jonathan Cartledge is Chair of the ASBEC Cities and Regions Task Group. BUILDING QUEENSLAND BILL 2015 The establishment of Building Queensland by the Queensland Government aims to deliver greater independence to advice provided to Government on infrastructure priorities in Queensland. This has been a long-standing policy objective for Consult Australia in

Queensland, so reflects a win for our lobbying on this issue. Some work remains to ensure the powers granted to the agency provide for full independence and transparency in the advice provided. In advance of providing a submission to the Building Queensland Bill 2015, Consult Australia is pleased to be meeting with David Quinn, CEO of Building Queensland who will provide an intimate briefing on the Bill. SKILLED MIGRATION Consult Australia’s submission to the Australian Government Department of Immigration Review of Skilled Migration and Temporary Activity Visa Programmes emphasises the importance of a streamlined and flexible skilled migration program responsive to industry needs. Current requirements for Labour Market Testing (LMT) for 457 visas are strongly opposed by Consult Australia as an unnecessary regulatory burden on our member firms. Largely a political exercise, the parallel Senate Inquiry into the impact of Australia's temporary work visa programs revisits the well-trodden debate regarding the impact of 457 visa holders on domestic employment and is in addition to the Departmental review above. Consult Australia’s submission makes the case once again for the abolition of Labour Market Testing (LMT) noting the importance of a flexible skilled migration program able to meet industry needs across market cycles. Our submission counters that lodged by Engineers Australia which curiously ignores niche engineering shortages, suggesting only an oversupply and that there is no sustained need for skilled migration in the current market. SOUTH AUSTRALIAN GUIDELINES ON LIMITING LIABILITY Consult Australia has made a submission in response to the revision of the South Australian Guidelines on Limiting Liability, which is currently taking place. Pleasingly, other organisations have been using our recently released report, Economic Benefits of Better Procurement in their submissions. UNFAIR CONTRACTS AND SMALL BUSINESS Our submission was made in response to draft legislation released to give effect to the Federal Government’s proposal to extend existing consumer protections against unfair contracts to small businesses. While on face value this proposal looks appealing, there are potential unintended consequences that may harm our industry. Our concern is that as drafted, the legislation will simply create a red tape burden for large and small firms alike. We have suggested changes that could overcome this issue through our submission. Consult Australia is meeting with the Hon Bruce Bilson, Minister for Small Business later this month to discuss our concerns in more detail. UPCOMING THOUGHT LEADERSHIP Consult Australia’s proactive advocacy continues with a strong pipeline of thought leadership scheduled for the second half of 2015. Look out for further landmark work on procurement, value capture, cities and urban development, stakeholder engagement, and workforce diversity. Increasingly our views are sought by policy makers on a wide range of subjects against which we have clear policy objectives. Our thought leadership is critical as we continue to strengthen these relationships, build our credibility and substantiate our voice on behalf of our members. Stay tuned!

Consulting Matters What’s happening at Consult Australia

STATE DIVISION UPDATES QLD UPDATE In May we welcomed two new committee members to the Qld Division – Trevor Sullivan, SMEC and Matthew Uidam, Golder Associates. The committee now has representation from 13 of our member firms – AECOM, Arup, Aurecon, Beca, GHD, Golder Associates, Hyder Consulting, Jacobs, KBR, Lambert & Rehbein, Opus, SMEC and WSP Parsons Brinckerhoff. Following the launch of the ‘More for Less: The economic benefits of better procurement’ report in Queensland we held a range of meetings with relevant stakeholders. The Queensland Division will retain a focus on Procurement this year and have been contacted by government to provide input into an Interdepartmental Committee review of Queensland Government procurement. The most recent monthly meeting with the managers of the Queensland Government’s Engineering Consultant Scheme (ECS) focussed on reporting requirements under the scheme.

NT UPDATE The Division has continued to focus our advocacy work on procurement reform, with the recent NT launch in Darwin of the Economic Benefits of Better Procurement Practices report. The launch breakfast welcomed The Hon Peter Styles MLC, Minister for Business to keynote. Following the presentation of the report by Consult Australia Senior Policy Advisor, Robin Schuck, attendees were provided an update on Stage 2 of the Northern Territory Government procurement reforms by Department of Business Deputy Chief Executive Officer, Andrew Cowan. Meetings held to further discuss the report’s findings and recommendations were held and resulted in positive responses and we now have agreement for ongoing dialogue and collaboration to work towards practical outcomes for our NT members.

A new quarterly template should be released soon that will hopefully streamline the information required, reducing the burden to our members and the broader industry. In our last update we discussed collaboration. Consult Australia Qld will be collaborating with a range of key industry groups this year via ConstructionQ to progress initiatives raised at the industry forums held last year. Our particular focus will be on Construction Efficiencies and Profitability, and how technology and procurement affect this. We were pleased to see the commitment to establishing an independent statutory body to provide advice to government on Queensland’s infrastructure priorities (Building Queensland). The Division has received a briefing by the new CEO, David Quinn, and will be providing a submission to the Bill. It is essential that this new body remains independent and publishes a pipeline of projects to provide certainty for business and better value for money outcomes for the tax-payer. We will be advocating for investment in early feasibility and design studies, outsourced to support

Of particular note NT Division member representatives will join with the Department of Business in ongoing regular working group meetings to take forward the recommendations of the report. Upcoming Events Boardroom Breakfast – Member Only Event29 July Land Development Corporation General Manager, Andrew Kirkland Boardroom Breakfast – Member Only Event25 August

Queensland industry, to help ensure a continuous supply of a wide range of ‘shovel ready’ projects ready to proceed as soon as funds are made available.

National Strategic Partner

Platinum Sponsor:

Gold Sponsor:

speech” and gain business contacts in the process. Next up will be a scavenger hunt racing around the CBD in a team, with a focus on improving participants team building and networking skill. Drinks and nibbles will be provided at a surprise nearby final location! FutureNet Darwin continues to welcome new members and we are always happy for event flyers to be shared with your business contacts to enable the group to grow and diversify. National Strategic Partner

Territory Generation General Manager Major Projects, Boyd White and Business Improvement Manager Ralph Hopwood. FutureNet FutureNet Darwin recently held a speed networking event at the Darwin Railway Club which offered young professionals an opportunity to test out their “elevator

Gold Sponsor: building great consultants

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

STATE DIVISION UPDATES VIC UPDATE With the More for Less report launched in Victoria, the Division has progressed productive discussions across government including with Jacinta Allan MP, Minister for Public Transport, the office of Treasurer Tim Pallas and the Department of Treasury and Finance, Major Projects Victoria, the office of Minister for Industry Energy and Resources, various members of the opposition, the Municipal Association of Victoria, and Regioanl Development Victoria. The Division Committee was delighted to host Chief Executive of VicRoads, John Merritt over a Boardroom lunch in May. John spoke at length about the infrastructure policy agenda in Victoria and opened the door to a strong collaborative dialogue with industry. FutureNetâ&#x20AC;&#x2122;s Professional Development series continues through 2015 with registrations open for the series into the second half of this year. Feedback has been

NSW UPDATE Following the NSW Election, the NSW Division has strongly sought the adoption of our recommendations from More for Less. The Division has met with individuals at Ministerial and Agency level, including but not limited to NSW Health, Sydney Water, NSW Trade and Investment, Urban Growth, the Shadow Treasurer, the Shadow Minister for Roads, the Shadow Minister for Infrastructure and Transport, Transport for NSW, the Office of the Small Business Commissioner and the Department of Finance. Overall feedback has been positive, and we look forward to continuing these conversations in the coming months. In addition, the NSW Division has been working on a new piece of thought leadership about Value Capture, due to be launched in July, we hope that this document will further the adoption of Value Capture. The Division is currently working with the Department of Finance to provide feedback on the Security

positive with participants considering the series a valuable opportunity to expand their skills and knowledge across a range of issues critical to consulting success. Taking a step outside of their project work, FutureNet Victoria considered the impact of increasing merger and acquisition activity across the Australian market for consulting firms. Reflections on the WSP | Parsons Brinckerhoff experience and an exploration of M&A activity more generally in the market supported a broad audience discussion. More recently FutureNet heard from Matthew Guy on the role of government in the built environment, his reflections in opposition and advice for young professionals. Look out for more great events as the Victorian Division considers the role of value capture to drive infrastructure investment, and supports a fresh debate between architects and engineers later in the year.

of Payment Act 1999, and with the Building Professionals Board, to review the Building Professionals Act 2005. We will keep members up to date with these reviews as they progress. Small to Medium sized firms should keep an eye out for our up and coming meeting with the Small Business Commissioner-to be advertised in the weekly e-news.

National Strategic Partner

Platinum Sponsors:

Gold Sponsor:

building great consultants

National Strategic Partner

Gold Sponsors:

Kindly hosted by ARUP, the NSW Division recently ran 2-hour complimentary training for our members on Project Finance and Contracting 101. Following this, Consult Australia will be hosting a small series of short low cost training seminars for our members. This year, FutureNet - Politics in the Pub will run in Newcastle and Sydney. The committees have a great line up of speakers, who will provide an analysis of the budget announcements, specifically how they relate to the pipeline of work, and the politics surrounding these projects- read more www.consultaustralia.com.au/nsw

Silver Sponsors:

Consulting Matters What’s happening at Consult Australia

STATE DIVISION UPDATES WA UPDATE The WA branch had an extensive events calendar in the second quarter, including presentations from Peter Coleman, Woodside CEO; the annual Architects and Engineers Roundtable; and the WA public launch of the More for Less report. Woodside CEO Peter Coleman presented on the current economic winds and where the consulting industry is to focus its energies to maintain its important role in supporting the primary sectors whilst remaining sustainable and profitable. Robin Schuck presented on our More for Less report, and in collaboration with the WA committee, launched the report in private and public forums, with government agencies and members. The launch breakfast was well attended by key people within government, and follow-up meetings will continue in order to build momentum on the report outcomes. Several meetings with BMW (through BEDP), MRWA and WALGA were held during the quarter with traction building on key policy drivers, helped by the report release. At an early April morning FutureNet breakfast event, Jeff Hansen, Managing

2015

Director of Sea Shepherd Australia inspired the audience to follow their passion. Jeff recounted his story from childhood to today, and the many challenges and crossroads he has faced along the way. He opened up to the audience about his health challenges and personal relationships. It was a genuine and honest recount of the highs and lows of his life, and the meandering path it has followed.

FutureNet WA also hosted a presentation from the WA Minister for Mines and Petroleum, Bill Marmion. Minister Marmion is an engineer by profession, and shared with approximately 150 attendees, his career trajectory from Main Roads to Parliament House, which was entertaining and well-received.

His transition to accept past negative experiences and encouragement not to let them stop you, to find a career that lights your fire, and to be the manager you would like to have, were just some of the lessons the audience took from the talk. Jeff showed his passion for the environment and stressed the importance of the health of our planet “in a spaceship, we are the passengers and the environment is the crew, slowly but surely we are killing off the crew, if we continue we will be hurtling through space without anyone to steer us”. The audience left feeling empowered, and ready to effect change. All feedback received was positive, a great result reflecting the quality of the speaker. Jeff also provided us with his perspective of the event “I love what you are bringing to the table, presenting people with all the information so they can make their own decisions, while networking along the way. Keep up the great work.” It truly was a successful event all around.

CONSULT AUSTRALIA AWARDS FOR EXCELLENCE

Save the date Friday, 4 December 2015 Brisbane Convention & Exhibition Centre South Brisbane QLD 4101

National Strategic Partner

Platinum Sponsors:

Gold Sponsors:

What’s happening at Consult Australia Consulting Matters

STATE DIVISION UPDATES SA UPDATE Building on the relationships established or strengthened following meetings to discuss More for Less: Economic Benefits of Better Procurement; and our advocacy strategies and program in support, the SA Division has now realised a strong platform on which to continue our campaign for better procurement. The report and its findings were well received and some early outcomes have been exceptional given the timeframes, and include: • The South Australian Industry Participation Advocate adopting our recommendations, and advocating strongly for our positions, including as part of detailed procurement proposals for consideration by the South Australian Cabinet. • South Australian Department of Treasury and Finance reviewing their Guidelines on the Limitation of Liability, and considering our report and recommendations in that context. The SA Division has made a submission in response to the revision of the South Australian Guidelines on Limiting Liability, which is currently taking place. We are now focussed on ongoing dialogue to work with stakeholders for practical outcomes for our members.

than keen to hear an update on the Adelaide Airport Master Plan, delivered by Adelaide Airport Ltd Managing Director, Mark Young and Executive General Manager Airport Operations, Vince Scanlon. The presentation included landside infrastructure projects being considered over the next five years as well as a detailed vision for the continued growth and development of the airport over the next 5 years, while also providing a strategic longer term view of potential changes over a 20-year planning horizon for both aeronautical and commercial activities.

Gold Sponsors:

building great consultants

Upcoming Events Member only Boardroom Lunch Series:

Silver Sponsors:

Mr Kevin Scarce AC, CSC, RANR - Royal Commission into the Nuclear Fuel Cycle Mr Michael Deegan, CEO, Department of Planning, Transport and Infrastructure Breakfast – Urban Infill: Delivering the Future Breakfast – Mr Raymond Spencer: Chair, Economic Development Board Architects and Engineers Roundtable

National Strategic Partner

The May Industry Breakfast was completely sold out as our many guests were more

ACT UPDATE The ACT Budget was welcomed by Consult Australia ACT with CEO Megan Motto welcoming ‘emphasis on infrastructure as part of a longer term plan for growth; innovation to establish a knowledge economy; improving urban inward investment through a marketable and attractive brand.’ Also in the ACT, Consult Australia met with representatives of the University of Canberra [UC] and Swinburne University of Technology, to work on the development of a BIM module as part of a future course being delivered by UC. The meeting was described as ‘very helpful’ they stated that they ‘are moving forward with providing education that will focus on meeting members' needs. At the last FutureNet event, young professionals

were given tips on innovation from The Chief Executive of CBR Innovation Network and member of the Department of Foreign Affairs International Reference Group on Innovation, Dr. Sarah Pearson. The Chief Operating Officer of SHL Development, Terry Shaw, and Ronan Moss of Cox Architecture – collectively known as the Stomping Ground Collective – also inspired on stage at Westside Acton Park. The next event brings together the Editor / Founder of Her Canberra, Amanda Whitley, and a Director from Molonglo Group, Johnathan Efkapidis, who are responsible for Canberra’s New Acton building which recently won the International Project of the Year at the 2015 Building Awards in London. At a Federal level, members described the meeting with Greg Divall as a ‘very useful and successful’ event; a ‘valuable forum to

share insights’; and, ‘a great opportunity to discuss ideas.’ Members were particularly pleased to hear his emphasis on quality, call for ideas on how to get relevant people into the costing process earlier to reduce costs further down the line, and his description of himself as an enabler keen to work in partnership. National Strategic Partner

Gold Sponsor:

Consulting Matters Features

Champions of Change endorse Strategy for Diversity and Inclusiveness

Dr Marlene Kanga AM launches the report at the 2015 Consult Australia CEO Conference in Sydney

Diversity Panel at the 2015 Consult Australia CEO Conference from left: Consult Australia CEO Megan Motto, Former Engineers Australia President Dr Marlene Kanga AM, Sex Discrimination Commissioner Elizabeth Broderick, SMEC Chief Operating Officer, Australia and New Zealand Hari Poologasundram, and Opus Managing Director Australia Melvyn Maylin.

Dr Marlene Kanga AM believes that those concerned about the black hole in the Federal budget should start thinking outside the box for solutions, and consider the impact of increasing the participation of women in the workplace.

GDP could be expected to increase by a whopping $25 billion—that’s a contribution that could fill a lot of budget black holes!

Chair of the Consult Australia Champions of Change and Chief Executive of Hyder Consulting, Greg Steele, formally endorsed ‘A strategy for inclusiveness, well-being and diversity in engineering workplaces’ developed by Dr Marlene Kanga for increasing diversity and inclusiveness in the Australian engineering sector at Consult Australia’s ASPAC CEO Conference in Sydney in May. Australia currently leads the world and is ranked first out of 136 participating countries in the educational attainment of women. Yet, according to the World Economic Forum Global Gender Gap Report, Australia only ranked 52nd in the world in terms of the labour force participation of women in the workplace. On this basis alone there can be no doubt that an increase in this participation level would result in significant economic benefits. Based on the figures available we know that if Australian women did as much paid work as women in Canada, Australia's

Consult Australia has long recognised the importance of increasing the participation of women—and of having a more diverse workforce in the engineering and technology sectors— both of which have sadly lagged behind the rest of Australian industry in encouraging the participation of women. The Consult Australia Champions of Change (see update on page 6) is made up of the chief executives from the largest member companies in the sector who between them account for more than 50 per cent of

employment in engineering, science and related industries. "This strategy provides us with a real opportunity to change this paradigm. It is an innovation, developed specifically for our industry sector, the first of its kind in Australia and in the world", said Mr Steele. The strategy was launched as part of a panel discussion on diversity and inclusion at the Conference with a panel that included Greg Steele, Elizabeth Broderick - Sex Discrimination Commissioner, Andy Goodman - CEO, SMEC Consulting and Dr. Marlene Kanga - 2013 National President of Engineers Australia and author of the

Consult Australia has long recognised the importance of increasing the participation of women and of having a more diverse workforce in the engineering and technology sectors both of which have lagged behind the rest of Australian industry in encouraging the participation of women.

Features Consulting Matters

STRATEGY FOR INCLUSIVENESS, WELL-BEING AND DIVERSITY IN ENGINEERING WORKPLACES

A STRATEGY FOR INCLUSIVENESS, WELL-BEING AND DIVERSITY IN ENGINEERING WORKPLACES

Measuring and reporting performance – the need for leading indicators �

TABLE 1: STRATEGY FOR INCLUSIVENESS, WELLBEING & DIVERSITY � COMMIT TO INCLUSIVESS, WELLBEING AND DIVERSITY

Measuring and reporting performance – the need for leading indicators �

A strategy for

It’s often said that what gets measured gets managed; and what gets rewarded gets repeated. A key element in changing the safety culture has been the monitoring of safety indicators by the Chief Executive and Board. In the same way, key metrics to track performance in achieving a more diverse culture and the embedding of incentives through key performance indicators are essential.

STEP 1

Develop a culture of inclusiveness, wellbeing and diversity

Establish inclusivness, wellbeing and diversity as a core value by leadership in the organisation

Develop performance and behaviour standards for inclusivness, wellbeing and diversity

Establish high performance and behaviour standards Policies available on company and zero tolerance for violations intranet

t’s often said that what gets measured gets managed; and what gets rewarded gets repeated. A key element in inclusiveness, well-being hanging the safety culture has been the monitoring of safety indicators by the Chief Executive and Board. In the same and performance diversity in in achieving a more diverse culture and the embedding of incentives through key way, key metrics to track erformance indicators are essential. engineering workplaces Key benchmarks need to be reported at appropriate levels of management to provide a highly visible message of the importance of the strategy. These metrics should report on the important elements of a diversity system and progress made in meeting each of them. Many listed and larger organisations in Australia already publish diversity policies and collect and publish data on gender representation to comply with ASX diversity recommendations and the Workplace Gender Equality Agency reporting guidelines.

As with safety, lagging indicators are a traditional reporting method and are a retrospective set of metrics that are based on events that have already occurred.

Leading indicators are forward looking, ensuring that targets for inclusiveness, wellbeing and diversity will be achieved in future and indicating weaknesses in procedures that may need additional attention. Leading indicators reduce the time lag in identifying and addressing issues and provide management with a clear picture of how an inclusive workplace culture is developing, how the strategy is being implemented, whether there are roadblocks and that shortcomings are identified and addressed. This is particularly important given the time lag to achieve change in the area of human resource management

Policy signed by CEO or Chairman of Board

Ensure competency for managing inclusivness, wellbeing and diversity

Ensure employees have the necessary knowledge - regular training appropriuate to at each level of management

Management training for a diverse workforce

Involve the workforce

Ensure employees take ownership and commit to inclusivness, wellbeing and diversity

Make it personal , e.g. “I want to be the best I can be”, this affects my daughter, my partner, my sister ...etc

UNDERSTAND INCLUSIVESS, WELLBEING AND DIVERSITY ISSUES

STEP 2

Review inclusivness, wellbeing and diversity issues across the organistaion

Undertake comprehensive analysis of all operations and all work sites

Training for managers in operations with particular problems, e.g. Bullying and harassment

ESTABLISH FRAMEWORKS FOR MANAGING INCLUSIVENESS, WELLBEING & DIVERSITY

A set of leading and lagging indicators that could be reported in an organisation’s diversity system is shown in Table 2. A powerful incentive is the alignment of the reporting framework with the strategic approach recommended by the Workplace Gender Equality Agency to achieve Employer of Choice (20). Such recognition would provide public endorsement of progress being made to achieve diversity within the organisation

Develop formal procedures

Documented procedures, regular training, recruitment, promotion, performance appraisal

Policies available on company intranet

Provide opportunities for flexibility

Develop policies for flexible working, job sharing etc.

Policies available on company intranet

Contractor management

Ensure contractors are aware of relevant procedures e.g. Recruitment and training, bullying and harassment etc.

Policies available on company intranet

Management of Change

Review impact of changes in operations, organisation structure, management personnel

Policies available on company intranet

Operational reviews

Conduct regular reviews of operations via interview, surveys etc.

Publish results for all employees

Key benchmarks needNovember to be 2014 reported at appropriate levels of management to provide a highly visible message of the mportance of the strategy. These metrics should report on the important elements of a diversity system and progress COMMIT made in meeting each of them. Many listed and larger organisations in Australia already publish diversity policies and TO A POLICY & STRATEGY ON IWD ollect and publish data on gender representation to comply with ASX diversity recommendations and the Workplace Gender Equality Agency reporting guidelines. STEP 3

MONITOR REPORT AND REVIEW

MONITOR, REPORT & REVIEW

UNDERSTAND IWD ISSUES IN YOUR ORGANISATION

Confidential reporting

Establish systems for confidential reporting of matters relating to breaches of the policieis for inclusiveness, wellbeing and diversity

Reports to management and board

Investigate incidents

Formal reviews of complaints and incidents and learning from these

Reports to management and board

Report key metrics

Develop key leading and lagging indicators of performance in inclusivesness, wellbeing and diversity

Reports to management and board

Conduct regular audits

Conduct regular audits to assess compliance with inclusiveness, wellbeing and diversity procedures

Reports to management and board

Review activities and performance

Report results of audits, metrics and other reviews to Reports to management and management board

STEP 4

As with safety, lagging indicators are a traditional reporting method and are a retrospective set of metrics that are based n events that have already occurred.

BOTTOM LINE IMPACT Employee turnover & satisfaction