The leading resource for facilities management in Australasia
Volume 7 Number 1 March 2013–May 2013
Experience Hobart at
Official magazine of the Facility Management Association of Australia Print Post Approved 340742 00155  $9.95 inc GST
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There are better ways to make your building greener. The most cost effective way to improve your building’s Carbon footprint is to first, tune its energy consuming systems. Using innovative Building Energy Optimisation Programs, A.G. Coombs are returning a dividend for Australia’s largest property owners. Find out how we can help you make your building the best it can be! A.G. Coombs, trusted and respected Building Services Specialist for over 65 years. Telephone Con Bafitis +61 3 9248 2700 or visit www.agcoombs.com.au
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contents
Level 6, 313 La Trobe Street Melbourne VIC 3000 Tel: (03) 8641 6666 Fax: (03) 9640 0374 Email: info@fma.com.au Web: www.fma.com.au Published by ABN 30 007 224 204
430 William Street Melbourne VIC 3000 Tel: (03) 9274 4200 Fax: (03) 9329 5295 Email: media@executivemedia.com.au Web: www.executivemedia.com.au Offices also in Adelaide, Brisbane & Sydney Editor: Gemma Peckham Editorial enquiries: Tel: (03) 9274 4200 Email: gemma.peckham@executivemedia.com.au Advertising enquiries: Tel: (03) 9274 4200 Email: media@executivemedia.com.au Layouts Alma McHugh Editorial contributors: Romilly Madew, Brian Purdey, David Baggs, Carl Sachs, Perth Airport, Pat Bourke, Darragh Brennan, Naomi Nielsen, Patrick Lee Lo, Matthew Trigg, Sarah Murray. Stock images sourced from: iStock, ThinkStock and Getty Images.
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IDEACTION.2013
Green buildings, healthy buildings and evidence-based performance metrics Brian Purdey of Bond University assesses the actual productivity impact of greener workspaces, and the challenging definitions of the word ‘productivity’.
CEO’s message CEO Nicholas Burt assesses the year ahead, from ideaction.2013 to the Association’s budget submission, and the Diploma of Facilities Management.
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Industry news Catch up on what’s happening in the FM industry around the country.
FMA BUDGET SUBMISSION
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2013–14 Australian Government Budget The Facility Management Association of Australia has presented its strongest position yet in a pre-Budget submission to the Australian Government. The editor, publisher, printer and their staff and agents are not responsible for the accuracy or correctness of the text of contributions contained in this publication or for the consequences of any use made of the products, and the information referred to in this publication. The editor, publisher, printer and their staff and agents expressly disclaim all liability of whatsoever nature for any consequences arising from any errors or omissions contained in this publication whether caused to a purchaser of this publication or otherwise. The views expressed in the articles and other material published herein do not necessarily reflect the views of the editor and publisher or their staff or agents. The responsibility for the accuracy of information is that of the individual contributors and neither the publisher or editors can accept responsibility for the accuracy of information which is supplied by others. It is impossible for the publisher and editors to ensure that the advertisements and other material herein comply with the Trade Practices Act 1974 (Cth). Readers should make their own inquiries in making any decisions, and where necessary, seek professional advice.© 2013 Executive Media Pty Ltd. All rights reserved. Reproduction in whole or part, without written permission is strictly prohibited.
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Come to Hobart for ideaction.2013, stay for the rest… This year’s National Facilities Management Conference and Exhibition is to be held in Hobart, with ‘Building information for the future of facilities management’ as the theme.
GREEN BUILDINGS
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Retail’s silver lining is green A sustainable retail environment can be beneficial for shoppers and retailers alike. Romilly Madew of the Green Building Council of Australia looks at how the retail sector can benefit from green buildings.
COMPANY PROFILES 10 Green Lighting Corp 19 Cora Bike Rack 20 Rheem 23 Green Energy Trading 25 Dolphin Point Constructions 26 Raven 28 Floorcovering Technologies Group 31 Adams Pest Control 32 Perpetual PropertyCare 35 Pitney Bowes
37 Cat® Rental Power 38 Skycool 43 Energy Power Systems 45 DTAC® 54 AUSCLEAN WA 59 Hydroheat 60 City Care 64 Facilities Management Association NZ
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How life cycle assessment can add value to retrofit valuation The smartest building retrofits are using products that have been assessed for their whole of life cycle, says David Baggs of the Australian Life Cycle Assessment Society.
FLOORING
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Choosing flooring for your office – what to consider With the array of flooring options on offer to facilities managers, how do you decide what’s best for your space?
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MAINTENANCE & ESSENTIAL SERVICES
MEMBER SURVEY
PROCUREMENT
NEW ZEALAND
33 Revised fall
prevention equipment standard bad news for facilities managers For more than two decades, AS1657, which relates to the safety of fixed platforms, walkways, stairways and ladders, has gone without revision; but now it’s time for change, which may not be great news for FMs.
AIRPORTS
40 Perth Airport
redevelopment The number of passengers travelling through Perth Airport has doubled over the past seven years, necessitating a transformation. We look at the investments to be made, and how they will improve this capital city’s air flight hub.
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More women entering the FM industry With facilities management traditionally being a male domain, it’s great to see a significant rise in female membership of FMA Australia, as reflected in the latest member survey.
TECHNOLOGY & INNOVATION
46 FM Software Survey,
Australia 2012–13 The results of the first survey of FM software use in Australia show that organisations are deriving benefits, but could gain even more.
SECURITY
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Be safe, not sorry Small businesses are vulnerable to security threats, theft and vandalism because they are failing to seek advice on securing their premises.
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How to ensure the products you purchase are truly sustainable Each facility stocks countless products, and it can be hard to make sustainable purchasing decisions. Darragh Brennan of Solaris Paper looks at the scope of factors to consider in purchasing.
EDUCATION & TRAINING
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Concern surrounding employment relations in New Zealand facilities management A change in legislation for workers in New Zealand has been met with widespread concern. Patrick Lee Lo of Building Services Contractors New Zealand details the problems arising from the revision of Part 6A of the Employment Relations Act.
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Cost savings for efficient education facilities Universities have a unique opportunity to create energy and cost efficiencies. Naomi Nielsen of Jones Lang LaSalle discusses the sustainability options available to tertiary institutions.
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from the CEO
CEO’s Message
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elcome to 2013! Although we are well into the year and nearing the end of the first quarter, I think you’ll agree we’ve had a good start and the outlook for the coming months is definitely a positive one. The Association has been busy finalising arrangements for ideaction.2013. This year, the National Conference and Exhibition is being held in Hobart, kicking off with the Chairman’s Welcome Reception at the Henry Jones Art Hotel on 26 May. The program line-up for the Monday and Tuesday will be truly inspiring, while providing real take-home information for delegates. The Hotel Grand Chancellor, the conference venue, certainly provides a fresh backdrop for what will be our 24th annual conference. In mid-February, the Board approved the establishment of a special interest group focused on supporting diversity across the industry. This is the first such group to be established by the current Board, demonstrating its leadership in encouraging diversity within the facilities management sector and the importance it places on the development of a program that supports its growth. This is significant for a number of reasons, and paves the way for further special interest groups to be established in other important areas of future focus. At a Commonwealth level, the Australian Government has announced an election for 14 September 2013. As with the recent Cabinet reshuffle, it is foreseeable that there will be some changes in public policy, regulation and compliance-related activities over the coming months. This makes our recent budget submission (see page 6) a very important document, providing FMA Australia the opportunity to put forward a strong position for the industry and to clearly articulate the important priorities that will facilitate future research and development within facilities management. A major focus of our budget submission was on industry research and education pathways. The need for greater and more advanced research is well documented and is key to driving the industry, while the education pathway is crucial to ensuring a facilities management workforce for the future. The recent salary survey demonstrated how vital this is. With approximately 64 per cent of facilities management professionals over the age of 46, there is a clear need to support a system that can attract and retain staff in this profession, which, in turn, is so crucial to enabling productivity and wellbeing in all workplaces and managed residential spaces operating within Australia’s built environment.
An important plank of the education pathway is the Diploma of Facilities Management – a specialist education program developed in conjunction with industry to ensure that an appropriate qualification is available to those entering the industry or wishing to improve existing skills. The Diploma has now had over 100 students enrol, and in the coming months will see the first of its students successfully graduate – a real milestone for the Association, the industry and the qualification. Supporting professionals to achieve productive workplaces and liveable residential facilities will continue to be a focus for the organisation in 2013. The death of 192 people in workplaces last year underscored the significant impact of facilities management as a function of productivity and health statistics; further highlighting how important it is to ensure that facilities management is properly resourced to provide safety in both workplaces and residential facilities. There will be a number of challenges to face during the coming year; however, the FMA is well positioned to support you and the industry through 2013 and represent the industry in forums that continue to impact on the work that our industry performs. I look forward to seeing you in Hobart at ideaction.2013.
Nicholas Burt Chief Executive Officer, FMA Australia
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news
Industry news
Berlin
Internal facilities management standards The first meeting in a series of international workshops has been held in Berlin to develop international standards for facilities management, with Stephen Ballesty CFM (and Life Member of the Association) representing the Association and Australian mirror committee. At this meeting, it was decided to progress with the development of two initial standards; the first focused on terms and definitions, the second on service agreements.
New appointment for NSW Committee member NSW Committee member Haris Moraitis has been appointed Group Manager Sustainability with BSE. A member of the FMA Australia Advocacy Portfolio Group, Haris brings his vast knowledge, gained over 15 years’ experience in the sustainability and green building services industry, to the growing BSE team.
Australian Work Health and Safety Strategy The Minister for Employment and Workplace Relations, Bill Shorten, has launched the Australian Work Health and Safety Strategy 2012– 2022. Driven by its vision – ‘healthy, safe and productive working lives’ – the Strategy sets a new direction for work health and safety in Australia for the next decade. For more information, visit www.safeworkaustralia.gov.au.
Leighton Contractors awarded $280 million contract in the Northern Territory Leighton Contractors’ Services Division has been awarded a fouryear, $280 million operations and maintenance contract by JKC Australia LNG (JKC) for the temporary site facilities works at Blaydin Point, Darwin. These works support the construction of the Ichthys
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Project onshore LNG facilities being delivered by JKC on behalf of the Ichthys joint venture.
Dyson use FM feedback to improve products Facilities managers have played a key role in the development of Dyson’s new generation of Airblade hand dryers. Dyson has recognised the value of engaging with the facilities management industry as a key mechanism for improving their products, while ensuring they meet the operational and maintenance needs of the industry. This has included the launch of the unique Airblade Tap Handdryer, incorporating a tap and dryer in one easy system. Visit ww.dysonairblade.com.au for more information.
New GECA CEO calls for significant green claims to be verified Rupert Posner, the newly appointed CEO of Good Environmental Choice Australia (GECA), says consumers need independent reassurance to avoid being taken in by greenwash. GECA’s independent standards are available in product categories that cover a wide range of more than 2000 products, and some services, including cleaning products, paper products, furniture, textiles, carpet, paint, and building materials. For more information, visit www.geca.org.au.
Thiess awarded major Sydney Water contract Thiess has been awarded a five-year Sydney Water operation and facilities maintenance services contract valued at $175 million. Thiess is working collaboratively with Sydney Water to ensure the delivery of valued water solutions to Sydney Water customers.
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news
Jones Lang LaSalle awarded largest outsourcing contract for FM services HSBC has selected Jones Lang LaSalle as its sole global outsourcing provider of integrated facilities management services across its 58-million-square-foot real estate portfolio. This is the largest facilities management contract awarded to a single provider on a global basis by a financial services firm.
Consultation: Facilities Management Good Practice Guide Building Information FMA Members to help shape the future of the industry FMA Australia in conjunction with Turner & Townsend, are currently developing a Good Practice Guide on building information. A vital part of this project is industry input. Over the coming months, a series of industry consultations will be taking place around the country, and FMA Australia members are invited to take part. The consultations will be held in the weeks commencing: 331 April, Brisbane 3322 April, Sydney 3313 May, Melbourne 3327 May, Hobart More information on dates and locations will be distributed to FMA Australia members in the coming weeks.
Construction review for months ahead – sparse and inconsistent, no growth
Sydney International Convention, Exhibition and Entertainment Precinct
Spotless Group appointed facilities manager for new convention centre The New South Wales Government has announced that it has appointed Destination Sydney as preferred proponent for the public private partnership (PPP) contract to develop and manage the Sydney International Convention, Exhibition and Entertainment Precinct at Darling Harbour. Spotless will provide integrated facilities management and life cycle asset management services for a period of 25 years.
New plumbing laws for Queensland Queensland’s new plumbing laws are now in effect, reinforcing the fact that facilities management professionals and maintenance workers who are not licensed plumbers must not undertake plumbing work. Under Section 119 of the Plumbing and Drainage Act 2002, it is an offence for a person to perform, direct the performance of, or supervise work for which a licence is required. For more information, visit www.hpw.qld.gov.au/notifiablework
The short-term forecast for the Australian construction market for February to April 2013 shows $16.8 billion in total construction starts. In contrast, the figure for the previous three months, November 2012 to January 2013, was $16.7 billion. This is an increase of one per cent. The long-term trend shows total construction starts in Australia at minus two per cent (when contrasting the value of 12 months’ construction starts against the corresponding 12-month period a year earlier). The Australian construction market is forecast to continue to trend negatively in the next three months. Whilst there are individual pockets of strength, they are the cause of large-scale individual projects commencing, rather than any strong overall market trend. While civil construction activity continues to persevere, the first signs of a decrease in starts are emerging in the market. This is a strong indication that 2013 will be the peak in civil construction. Both construction activity and construction starts are trending to shrink by the end of the year. The civil construction starts’ long-term trend in Australia is currently at minus five per cent (when contrasting the value of 12 months’ construction starts against the corresponding 12-month period a year earlier). Information provided courtesy of BCI Media Group. For further information, please visit www.bciaustralia.com
FMA Australia becomes a Sector Partner for Green Cities 2013 FMA Australia will again be a Sector Partner for the Green Cities conference and expo. Australia’s largest sustainable built environment event returns to Sydney, bringing together the nation’s top sustainability professionals for three days of inspirational dialogue, innovative thinking and paradigm-shifting collaboration. Green Cities 2013 will be held from 6–8 March in Sydney. For more information, visit www.greencities.org.au
SUBMIT YOUR UPDATE Got an update? Then let us know. Industry Updates can be up to 70 words in length and should be submitted to policy@fma.com.au, with publication and final wording at the discretion of FMA Australia.
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FMA budget submission
2013–14 Australian Government Budget
The Facility Management Association of Australia (FMA Australia) has presented its strongest position yet in a pre-Budget submission to the Australian Government.
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ollowing a request from the Treasurer and Deputy Prime Minister, the Hon. Wayne Swan MP, the Association undertook a two-month consultation process, which included input from members of its Policy Advisory Group and various Portfolio groups. So much feedback was received that the Association was granted a special extension by the Treasury.
Building on existing support The submission has built upon the hard work of the Association in its role as the peak national industry body for facilities management, in supporting and representing those professionals, teams and organisations responsible for managing, maintaining and operating Australia’s built environments. Relationships with all levels of government are stronger than they have ever been. The ongoing support of facilities management by the Australian Government was recently reiterated by the Hon. Julia Gillard, Prime Minister of Australia, when she highlighted that: ‘None of us, from the Prime Minister to the most junior office worker, could get through a single day without the great work of your industry.’
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The ongoing support of facilities managment by the Australian Government was recently reiterated by the Hon. Julia Gillard, Prime Minister of Australia
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FMA budget submission
The recommendations contained in the Association’s submission were developed to enable the Australian Government to leverage the considerable untapped potential of the facilities management industry to deliver substantial and sustained contributions to national productivity, industry competitiveness and community wellbeing.
The submission At its most basic level, facilities management is the provision of physical environments for use by others. The submission reinforced that in all cities and regional areas, facilities management provides safe, healthy, productive environments, thus protecting the wellbeing of the Australian community and ensuring the success of our national economy. This is achieved through the management, operation and maintenance of individual buildings, precincts and pieces of community infrastructure in such a way that they meet or exceed the needs of their users. Further support for facilities management by the Australian Government has the ability to unlock short-term stimuli through industry innovation, as well as long-term productivity and security gains from outcomes such as reduced downtime, greater resilience and higher levels of energy, water and resource efficiency.
...facilities management provides safe, healthy, productive environments, thus protecting the wellbeing of the Australian community and ensuring the success of our national economy Budget Recommendation #3
Budget papers The submission presented a series of five Budget Recommendation Papers, each detailing a key issue affecting facilities management in Australia. In order to place minimal burden on the Budget, but increase returns and certainty over the forward estimates, each of the following recommendations was formulated to bring greater certainty and efficiency to government policies affecting the built environment. Many are of limited cost, as they relate to systemic change. All rely on the leadership of the Australian Government.
Budget Recommendation #1 Roadmap for facilities management professionals Allocation of $200,000 to fund stakeholder consultations and project work leading to the development of an ‘industry roadmap’ detailing national principles and preferred timelines for the introduction of minimum standards for facilities management professionals by governments, industry or a combination thereof.
Facilities management industry innovation fund Supporting the transition to a low-carbon economy through industrymatched research funding of $600,000 over three years, focused on developing evidence-based decision-making processes in the facilities management industry.
Budget Recommendation #4 National facilities management benchmarking standard Allocation of $180,000 over two years to develop and implement a national standard for the collection and reporting of cost and resource consumption data relating to the operation of Australia’s built environments.
Budget Recommendation #5 National Energy Savings Initiative Announce a clear timetable for the National Energy Savings Initiative to be finalised in collaboration with the facilities management industry and as a complement to the carbon price and other climate change initiatives.
Budget Recommendation #2 Urgent review of industry classifications Improvement of structural resilience of the Budget and industry by instructing the Australian Bureau of Statistics to conduct a major review of the Australian and New Zealand Standard Industry Classification (ANZSIC) to ensure it reflects the nature of economically significant industries, including facilities management as a separate area of statistical collection.
Want to get involved? If you have an interest in policy and would like to be involved when the Association prepares its submissions, join the Policy Advisory Group by downloading the nomination form available from www.fma.com.au or emailing policy@fma.com.au.
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ideaction.2013
Come to Hobart for ideaction.2013, stay for the rest… ‘Building information for the future of facilities management’ is the theme of this year’s not-to-bemissed National Facilities Management Conference & Exhibition.
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resented by the Facility Management Association of Australia (FMA), ideaction.2013 is to be held in Hobart from 26–29 May. The conference offers the opportunity to meet with facilities management professionals and government representatives from around Australia, to discuss and exchange ideas, and attend presentations by industry and thought-leaders, as well as stimulating workshops and panel debates, including what promises to be a highly controversial hypothetical. Conference speakers will address a range of current industry issues, while keynote and workshop presenters such as Carol Fox, author of Be a Charismatic Communicator, will target success strategies to help you identify values to build and motivate a winning team. Master of Ceremonies, Dave Staughton, will lead the proceedings; his experience with business leadership, strategic implementation, sales and marketing and teamwork is second to none. You’ll also have the chance to meet with key industry suppliers in a relaxed yet informative environment. The Exhibition is where you can find out about products and services, and develop new business relationships. Site tours, including the internationally renowned and totally irreverent Museum of Old and New Art (MONA), promise to be engaging, informative and fun.
Just as importantly, there will be numerous social opportunities for connecting and relaxing with other FM professionals, including the Chairman’s Welcome Reception at the Henry Jones Art Hotel on day one. The ideaction.2013 dinner is a day two highlight; catch a boat across the Derwent to Wrest Point Casino and enjoy a delicious dinner and some great entertainment. While you’re at the conference, don’t miss the chance to experience fascinating Hobart. It’s a city of bustling markets, festivals and entertainment, and fine restaurants. Mustsees include the Salamanca Markets and Mt Wellington, while discovering the city’s rich and colourful history.
Why not stay on and soak up the wonder that is Tasmania? Don’t be put off by the recent bushfires; Tassie is still open for business – including the Port Arthur Historic Site and other major tourist attractions – and welcomes your visit.
To book, or for more information about ideaction.2013 and Tasmania, visit the conference website www.ideaction13.com.au or contact conference organisers Leishman Associates on 03 6234 7844.
To support Tasmanian Bushfire Appeal, visit the Red Cross Tasmanian Bushfire Appeal 2013 website at www.redcrossfundraising.org.au/event/tasbushfire to find out how you can contribute.
MONA, Hobart. Image (C) Jeff Owen.
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ideaction.2013
ideaction13.com.au. 26–29 May. Hobart NATIONAL FACILITIES MANAGEMENT CONFERENCE & EXHIBITION
BUILDING INFORMATION FOR FACILITIES MANAGEMENT
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company profile
Long-term lighting, and savings, with LEDs
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reen Lighting Corp (GLC) is a global company that specialises in the development of LED lighting technology. GLC was founded by electrical engineers with over 35 years’ experience in the field of electronics, which provided GLC with a sound base on which to build robust and efficient LED products. We manufacture our products at our own facility in the Philippines to standards that are United Labs (UL) certified, and of the highest quality in the LED industry. All prudent facilities managers and decision-makers know price is only one of the factors when choosing which LED company to purchase from. Safety, reliability and performance are just as important, if not more so, in the process. Many manufacturers make claims to safety, reliability and performance, but GLC has built-in features, such as multi-stage surge protection, over current and over temperature protection, to name just a few. At GLC, quality is built into all our products to ensure we not only meet, but also exceed our customers’ expectations.
review of ‘Risk of electric shock – relamping’, in UL 1993 and UL 1598.)
Reliability 3
3 3
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Voltage surge suppression of our external driver exceeds 140 joules, and with our exclusive three-stage surge suppressor, normal operation will be sustained where others may suffer catastrophic failure. Our fault-tolerant LED lamp and driver protection includes inherent power limiting. Automatic recovery for power disturbances is standard in our LED drivers, with voltage-specific drivers to improve trouble-free operation at the specific line voltage used. GLC LED Lighting is designed to operate at extended temperatures.
Performance Unlike most other T8 LED retrofit kits, GLC T8 Led Lighting is wired to allow tubes to be installed either way, while still meeting the recent UL safety standards for relamping. 3 GLC LED lighting do not have dark spots and operate cooler, extending their life and reducing their weight. We are proud to have worked on projects with AMP Capital Invest, QIC Global Real Estate, Pet Pacific and Tower Holdings Pty Ltd, to name a few of our clients, and stand behind our products with our international Performance Warranty, with our products guaranteed for 50,000 hours. Call us on 1300 412 270 and ask us how we can help you start saving! 3
Safety 3 3 3
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GLC LED lighting tubes are all polycarbonate to reduce the risk of electric shock or safety hazards from breakage. Our driver is external and protects the lamp connectors and LEDs from over current. Our external driver is inherently energy limiting and has been designed to recent UL standards to include a recent UL standard concerning lamp replacement. These recent UL requirements are often not met by other providers. (See current appropriate UL standards and include a
FACILITY FACILITY PERSPECTIVES PERSPECTIVES || VOLUME VOLUME 77 NUMBER NUMBER 11
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A change to LED makes sense.
The future of lighting is LED and it’s simple. Reduce Energy Usage · Reduce Greenhouse Emissions Reduce Your Carbon Footprint · Reduce Your Energy Bills For a superior quality of illumination that gives you that “WOW!” factor, deal directly with the manufacturer at our proudly Australian company.
1300 412 270 email: sales@mygreenlightingcorp.com
mygreenlightingcorp.com
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green buildings
Retail’s silver lining is green BY ROMILLY MADEW, CHIEF EXECUTIVE, GREEN BUILDING COUNCIL OF AUSTRALIA
Australia’s retail sector is certainly smarting, with bricks-and-mortar retailers pointing to the global financial crisis, the rise of online shopping and GST legislation, high rental costs, and penalty rates for their poor performance in recent years.
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ertainly, Australian consumers aren’t happy. Results from the latest American Express Global Customer Service Barometer reveal that one-third of Australian shoppers believe businesses are paying even less attention to customer service in the current economic climate than they were a year ago. In fact, of the 10 countries identified in the survey, Australians were the second-least happy with the service they receive. Only the French were less happy with the level of customer service they receive. The report also shows that two-thirds of Australians will abandon a sale due to poor customer service, while more than half are prepared to spend more with a company that provides good service. These statistics allude to a hidden opportunity for the retail sector: delivering a better retail experience for customers and retailers alike. It’s time for the retail sector’s sustainable transformation. Solid research now confirms that integrating green design – such as access to natural light and ventilation, and choosing materials that are low in harmful chemicals – can improve retail takings. A study by Heschong Mahone in 2003 found evidence that daylit stores deliver higher sales than non-daylit stores. In fact, daylighting was found to increase sales by up to 40 per cent. Even more compelling; a 2012 study from the University of Notre Dame in the United States has found that bank branches operating from facilities rated using the USGBC’s Leadership in Energy and Environmental Design (LEED) rating tool opened 458 more consumer deposit accounts and had $3 million more in consumer deposit balances per facility per year over non-certified properties. The first-of-its-kind study compared the financial performance of 93 LEED-rated bank branches with 469 non-rated branches owned and operated by PNC Financial Services Group.
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Researchers found that LEED-rated banks also had almost $1 million more in loan balances per facility per year. After controlling for other variables that influence performance (such as market demographics, branch size and advertising spend), the sales at LEED-certified branches increased by $461,300 per employee per year, compared to non-certified locations. Utility costs per employee in LEED branches were also significantly lower than in the noncertified buildings, at a reduction of $675 per employee per year.
Why could this be? Green office buildings consistently outperform non-green buildings in terms of comfort and productivity. Natural light, fresh air and access to views of the outdoors, as well as control over individual workspace temperature and lighting, can affect productivity directly – whether in schools and universities, commercial offices, or retail outlets. Staff costs are by far the greatest annual business expense in most businesses, and an incremental increase in productivity can easily pay for the small premium on a green space. An improvement in productivity of just one per cent – or five minutes each day – can mean an additional 18 hours and 20 minutes a year for each person working in a commercial office. Multiply that by the hourly rate of each person, and you can quickly see the returns. People working in the retail sector are just as susceptible to their environments as those working in offices, so it shouldn’t be a surprise that a retail workplace with higher levels of indoor environment quality will lead to happier, healthier and more productive staff. The flip side is that retail customers are getting savvier, and are increasingly rewarding sustainability with their wallets. A
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green buildings
range of international studies suggest that consumer behaviour is changing, including the Regeneration Consumer Study, released in November 2012, which found that two-thirds of consumers in six countries felt ‘a sense of responsibility to purchase products that are good for the environment and society’. What’s more, employees, particularly young people, increasingly want to work for the ‘good guys’ – the companies that are conscious of their impact on the environment. Working from a green retail space can positively impact how employees feel about their employers, and higher satisfaction can mean significantly better employee retention. In this market, corporate social responsibility is not ‘nice to have’, but ‘a must-have’. A number of leading organisations in the retail sector have recognised the benefits of a Green Star rating for their centres. Westfield Sydney, for instance, was awarded a 5 Star Green Star – Retail Centre v1 rating, making it the largest fully-rated Green Star retail centre in Australia. Robert Jordan, Managing Director of Westfield Group Australia and New Zealand, says that Westfield ‘saw it as incongruous to deliver a world-class centre in the absence of sustainability objectives. Green Star provided us with a platform to enhance and verify the development’s environmental attributes’. These sustainability objectives include the first dedicated trigeneration system in an Australian retail development, as well as an 80 per cent reduction in potable water consumption and a 35 per cent reduction in greenhouse gas emissions when compared with an average retail centre of similar size.
While Westfield Sydney and 15 other retail centres around Australia have achieved Green Star ratings for their base building developments or refurbishments, up until now Green Star has not addressed interior shop fitouts. In November 2012, the Green Building Council of Australia released a new Green Star – Interiors rating tool to assess the interior fitout of any building type – whether that’s a hospital, a hotel, a school, an office or a shop. We are currently in conversations with a range of organisations that are looking to apply the rating tool to their projects. We are confident that we’ll be announcing bank branches, fast food restaurants, chain stores and supermarkets achieving Green Star ratings in 2013. With the exception of a few leaders, shopping centre landlords and tenants in Australia have been slow off the mark in terms of sustainability; however, we are beginning to see some progress as developers recognise the need to incorporate energy and water reduction measures and high levels of indoor environment quality into their retail developments to futureproof their assets, make them more resilient against climate extremes, and protect themselves against falling market share and softening investor sentiment. What’s more, some retailers are seizing the first-mover advantage and seeing sustainability as an opportunity to reconnect with more environmentally aware consumers and staff who demand more pleasant, productive and healthy workplaces.
For commercial electrical services, you need really bright sparks Urbis Electrical has become the go-to electrical service provider for building managers and owners. From new installations to ongoing maintenance, our fully accredited team has the experience, expertise and capability to deliver. • Testing and tagging • Thermal imaging • Exit light and RCD testing • Switchboard upgrades • Compliance and reminder services • Energy efficiency solutions
For fast response, reliable service and brilliant results, call Urbis Electrical. 1300 725 738 www.urbiselectrical.com.au
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Green buildings, healthy buildings and evidence-based performance metrics BY BRIAN PURDEY, ASSOCIATE PROFESSOR OF FACILITIES MANAGEMENT, BOND UNIVERSITY Being driven by the mantra that you can only manage what can be measured makes it relatively easy to demonstrate the broad business benefits of green buildings. Supply-side gains include reduced materials consumption, more energy efficient systems, and less workspace area. Flip to the demand side, and the same mindset focuses on occupant productivity improvement.
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or strict economic rationalists, productivity is an efficiency indicator, unsuited to being a performance measure for most office work; however, the Australian Productivity Commission has long recognised that ‘productivity’ is a multifactor construct reflecting gains from investments in labour, capital and their combined effects. Therefore, any serious evaluation of built environment performance first needs to consider ‘productivity’ as an efficiency-plus-effectiveness concept, and then take seriously the relative contributions of people and capital, assuming that capital investment includes both physical assets (place) and information technology (processes). Business gain from workplace investments might be easily quantified (for example, cost saving from higher space density), but evidence of individual work performance improvement (effectiveness) is more difficult to obtain. Similarly, capital investment in better plant and equipment might lower energy consumption, but demonstrating individual or teamwork performance gains from improved indoor
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environment quality (IEQ) can be problematic. The same is true for quantifying the affordances of new information technologies. While there are numerous studies into the impact of IEQ on worker performance, individual aspects of environment quality tend to be studied in isolation. Findings can ignore the complex interplay between the various aspects (for example, temperature, noise and aesthetics), because scrambling the IEQ egg is almost impossible. While this doesn’t prevent industry pundits from waxing lyrical about the human performance benefits of good IEQ, the research evidence is often contradictory. For example: 33 The potential to improve work performance significantly through lighting is largely unproven, unless work is visually demanding. 33 Both natural light and views out can contribute to environmental and job satisfaction and may buffer the negative impacts of job stress. 33 Optimal temperature depends on the nature of the task being
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performed – it will vary among individuals and over time.
In organisational research, it is recognised that while task performance can be measured, performance in the organisation context is now much more important
33 Complaints about eye irritation are more prevalent in
mechanically versus naturally ventilated buildings; however, extended visual display use may be a bigger culprit. 33 Access to views has an association with intention to quit, but staff turnover is more heavily influenced by factors external to the organisation like job market factors and local unemployment rates. There is, however, a large body of evidence connecting noise and disturbance in open plans to worker dissatisfaction and poorer performance, although these impacts can also vary depending on the nature of the work being performed. Consequently, reports of benefits resulting from activity-based working (ABW) are deserving of much closer scrutiny. The premise of ABW seems to be that high worker productivity is critically dependent on spatial work tools, and that moving between different spatial settings, either by choice or necessity, is conducive to maintaining the state of flow associated with peak performance.
More value More service More power to you We don’t just design, install and maintain embedded networks. Urbis Energy is a full-service electricity on-seller for new and existing buildings, delivering more efficiency with NMI approved automatic meter reading technology. • • • •
Accounts and billing Bill collection Customer support and care Profit distribution
Find out how Urbis Energy can give you more. 1300 725 738 www.urbisenergy.com.au
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Figure 1: Cognitive performance impacts from distracting work environments
Research, however, indicates that, once distracted, it takes a person quite a while to return to a state of flow, and over a workday some employees never do. Contradictory evidence points to modern society increasingly being driven by distraction, with tools such as Google and the internet taking advantage of the brain’s neuroplasticity, enabling individuals to learn how to function with multiple distractions. There is a big difference between functioning with distractions and the ability to perform under such circumstances, particularly in work that has a high mental load.
However, an even larger problem with the current crop of built environment surveys is that they are restricted to evaluating only the relationship between the individual and the built environment – the so-called ‘fit’ theory and analysis
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In organisational research, it is recognised that while task performance can be measured, performance in the organisation context is now much more important. This includes tricky qualitative aspects, such as organisation citizenship behaviour, collaboration and the like, and begs questions as to the contribution that the built environment makes to such outcomes, not to mention how this can be measured. In comparing different built environments, surrogate performance measures are often used in practice. For example, self-assessed productivity implies that the occupant evaluates the capability of the built environment to contribute to work outcomes, not their personal ability to carry out work tasks or recent job performance. An occupant’s self-assessment is unlikely have a one-to-one correspondence with any objective measure of job performance. On the other hand, perceived productivity is a mental construct based on the various built environment stimuli that an individual considers to have an association with work performance. Occupant perception is treated as a human computational system capable of drawing work productivity inferences based on the environmental information that flows to the occupant, and the meanings attached to it. An occupant is assumed to infer a logical conclusion based on premises known or assumed to be true about these associations, and then convert it into a numerical rating of work productivity. Using perceived productivity as a valid measure is potentially fatally flawed, because in processing environmental information, individuals are susceptible to the illusion of attention – they think they notice, know, and remember more than they actually do. In static environments, people do not necessarily see what they observe, while in dynamic environments, not all perceptual information is purged when an individual enters into or moves through different workspace settings. The validity of an occupant’s response, then, critically depends on if and how prior built environment information was initially encoded into memory, the information retrieval strategies employed by the individual, the extent to which environmental information has been contaminated through social interaction with others, and the nature of the evaluation question itself. However, in offices where the mental workload is high – think most modern offices – individuals simply fail to maintain sufficient awareness of their surrounding environment(s), because their working memory is constantly overloaded. Some researchers propose that perception is mathematically impossible; that our sensory systems simply use mental shortcuts to make best guesses as to the nature of the environmental reality. Notwithstanding these issues, if the industry is to persist with surveys, then the questions asked should be couched in relative terms, linked to a reference standard or time tagged, because these questions generate more valid occupant responses. Are quantitative measures, like typing rates, more appropriate? If an employee’s full-time job is typing, the answer is yes! But for how many building occupants is this true? A high productivity
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Confirming the work profile of building occupants is rarely a feature of commercially driven built environment evaluation surveys
rating for a typing task simply overstates the impact of the built environment on overall work performance, unless a high percentage of job requirements are biased towards this kind of efficiency measure. Computers and keyboards are integral to the modern office, but most jobs involve variable keystroking, not dedicated typing. Either way, the real question is whether built environment conditions actually contribute to the measured gain. If the actual work being carried out is not particularly demanding, or is low in complexity, noise and distraction in an open-plan space (green or otherwise!) mitigates routine job boredom, activating the individual and improving performance marginally in the short term. A workplace with a lower IEQ rating – noisy, or cooler – may then afford a performance-enhancing stimulus for this kind of work. The converse is also true, with similar conditions delivering the opposite results for more complex and demanding work. Confirming the work profile of building occupants is rarely a feature of commercially driven built environment evaluation surveys. Moreover, the surveys focus on assessing occupant satisfaction with the built environment; positive responses are translated to generic job satisfaction, which implies higher job performance,
Discover the financial benefits of commercial lighting upgrades Financial incentives are available for commercial lighting upgrades in New South Wales and Victoria. Green Energy Trading can work with you to navigate the energy efficiency schemes, helping you to secure the financial benefits through environmental certificate creation.
Find out more – contact us on 1300 077 784 ee@greenenergytrading.com.au By replacing 350 fluorescent T8 tubes with LED tubes at a cost of $20,000, a mediumsized office in NSW could secure: • $9,500* one-off financial incentive • $8,000** in energy savings per year • Less than 16 months payback *Certificate price fluctuates with changing market conditions. ** Based on 23c per kWh
323312A RHS_Green Energy Trading | 1843.indd 1
Green Energy Trading T: 1300 077 784 E: ee@greenenergytrading.com.au 2 Domville Avenue, Hawthorn, VIC 3122 www.greenenergytrading.com.au 8/02/13 10:33 AM
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and satisfaction is then confirmed by a high perceived productivity rating. Herzberg’s Motivation-Hygiene Theory is often cited as a supporting framework for this line of logic; however, Herzberg’s theory has been discredited because he confused analysis of events (what happened) and agents (what made it happen). Subsequently, researchers classified critical incidents according to pleasant or unpleasant physical working conditions, or agents, and found no evidence that a good physical environment had any motivating or hygiene incidence. The physical environment as a ‘bad event’ only rated as a mild hygiene factor (frequency two per cent) compared with more important motivators being related to the nature of the work itself. These findings point to the effect of the physical environment on performance being marginal at best, and restricted to reducing negative impacts – a proposition that is being tested in a research project currently being undertaken by the Centre for Sustainable Healthy Communities (CSHC) at Bond University. However, an even larger problem with the current crop of built environment surveys is that they are restricted to evaluating only the relationship between the individual and the built environment – the so-called ‘fit’ theory and analysis. This frame of reference denies the critical importance of the actual work being undertaken, and that the management of facilities (built environment) is, or should be, concerned with the integration of people (social and organisation attributes), process (information and technology attributes) and place (spatial attributes) in the performance evaluation process. Researchers in the CSHC at Bond University are also investigating the application of a more robust evaluation tool that engages the occupant with all three aspects of operational facilities management, and incorporates the nature of the work being performed, as well. The research project includes comparison of green and traditional built environments. This approach to evaluation, however, still relies on occupant self-evaluation of perceptual and behavioural aspects of work performance. Complementary research involves simulating modern office work and using a computer-based instrument in real time to evaluate an individual’s psychomotor function, attention, learning and working memory responses to different built environment conditions. This evaluation method has been shown to be sensitive to changes in performance from a previously established baseline, making it ideal for performance comparisons, and over relatively short periods of time. An added benefit is that the instrument can be used to evaluate team performance in different built environments. Figure 1 shows the findings from a preliminary evaluation of a range of cognitive performance measures in a pre- and postevaluation situation. It shows an overall decrease in performance for an individual classified as having a low propensity to be distracted as they moved between different activity settings, and were subjected to different levels of visual and auditory disturbance.
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Complementary research involves simulating modern office work and using a computerbased instrument in real time to evaluate an individual’s psychomotor function, attention, learning and working memory responses to different built environment conditions Despite the practical benefits of using this more advanced approach, it fails to address the challenges presented by a more mobile workforce. More sophisticated occupant evaluation techniques are called for. This means rethinking the intrinsic drivers of performance, and acknowledging that we may have gone as far as we can with perceptual, behavioural and psychological tools. A further limitation lies in the bias and inaccuracy in the human response to a survey questionnaire. Monitoring and measuring an occupant’s reactions to environmental stimuli more directly might overcome these limitations.
The CSHC at Bond University is investigating how wireless technologies could be used to map individual health, satisfaction and performance responses to built environment conditions in real time, and to accurately correlate these variables to the conditions afforded to more mobile workers. To this end, the Centre would be interested in hearing from professional or industry bodies, and government and private sector organisations willing to participate in the field trials commencing in early 2013.
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company profile
Cora Bike Rack is a specialised Australian company that designs, manufactures and supplies bicycle parking racks, rails and lockers. As the major supplier to government and business since 1997, Cora Bike Rack has the experience, knowledge and product selection to provide the ultimate end-of-trip bicycle parking facility. • • • •
Made in Australia EcoSpecifier verified Green Star and AS2890.3 compliant Door to Door delivery across Australia
Contact Details Cora Bike Rack P: 1800 249 878 F: 1800 249 879 E: sales@cora.com.au I: www.cora.com.au
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company profile
Meeting cyclists’ parking needs
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he use of bicycles has steadily increased in recent years as the health and environmental benefits of cycling have become more widely accepted. With state and local governments promoting sustainable transport options and the ability to earn Green Star points, there has become an increased need for bicycle parking and storage facilities. Bicycle parking facilities for commercial tenants require dedicated parking areas and devices that bicycles can be locked to or secured in. As these basic requirements can add up to a significant expense, it is important to design facilities that will meet the needs of cyclists. AS2890.3 provides some helpful guidelines in designing safe, secure and convenient bicycle parking facilities. Ideally, bicycle parking areas should be located in the most convenient location for cyclists and close to building entrances or lifts. The parking area should be sheltered from weather, in clear view of the public or under surveillance, and be sufficiently lit at night. The three classes of acceptable bicycle parking facilities include high-quality bicycle racks, fully-enclosed bicycle lockers and secure compounds with secure racks provided. In determining the appropriate class and quantity of bicycle parking facilities to provide, consideration must be made to the specific application, location and space available.
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company profile profile company
Maintenance of water heaters
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ater heating systems require little servicing to maintain their performance; however, there are a number of requirements that should be adhered to in order for the water heaters to operate efficiently and safely. This quick guide is an overview, and does not replace the advice provided in the operations manuals supplied with all products. Some service items can be performed by the system owner; however, there are some maintenance requirements that should only be undertaken by qualified personnel. Storage water heaters include those heated by integrated gas burners or electric heating elements, and include storage tanks used with solar, heat pump and external gas heaters. The maintenance requirements of all storage tanks are similar, and include the need, every six months, to: 3 Operate the easing lever on the temperature pressure relief valve (TPR) and the expansion control valve (ECV), if one is fitted. It is very important to raise and lower the lever gently. Exercise care to avoid any splashing of water, as water discharged from the drain line will be hot. Stand clear of the drain line’s point of discharge when operating the valve’s lever. 3 Check that the drain line from the safe tray is not blocked (if one is installed). The annual service includes the following actions: 3 Inspect and flush the TPR and ECV. 3 Inspect all connections. In addition, for gas and electric models: 3 Check and adjust the inlet gas pressure. 3 Check and clean the main burner. 3 Check operation of elements and thermostats. 3 In hard water areas, check for build-up of scale on the heating elements.
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It is recommended that a five-year service be conducted on the water heater, and includes the following: 3 Replace the TPR. 3 Inspect and flush the ECV. If required, replace the valve. 3 Inspect and, if required, replace the anodes. If the anodes are not replaced, they should be replaced within three years of this service. 3 Drain and flush the water heater if required. In commercial applications where large volumes of hot water are used, sediment may build up on the bottom of the cylinder and reduce the heating efficiency. In areas of high water sediment, draining and flushing out may be necessary. Continuous flow water heaters require the following routine maintenance every six months: 3 Trim back any shrubs, bushes or other plants that have encroached around the water heater. 3 Inspect around the water heater for insect infestations, and have them treated. Insects nesting in the water heater can interfere with the operation and also damage components. 3 Check and clean line strainers and the filter on the cold water inlet and hot water return. Annually: 3 Check and, if necessary, adjust the gas pressure. 3 Check the operation of, and clean, the burner. 3 Visually check the unit for any potential problems. 3 Inspect all connections.
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The inside story on indoor Commercial Continuous Flow
GAS
• • • • • •
Pre-engineered solutions AGA certified stainless steel fluing system* Room sealed horizontal or vertical discharge flue Back to Back and In-Line configurations Indoor and outdoor models available 82°C capable
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RHEEM COMMERCIAL
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Rheem’s Commpak continuous flow system is an innovative approach to meeting high hot water demands for commercial applications. Now available with an indoor version, Rheem Commpak is the perfect choice for tight plant rooms and requirements where fluing is a challenge. Rheem Commpak is the most efficient gas commercial hot water system available that provides mains pressure performance in a tankless format.
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green buildings
How life cycle assessment can add value to retrofit valuation DAVID BAGGS, PRESIDENT, THE AUSTRALIAN LIFE CYCLE ASSESSMENT SOCIETY (ALCAS)
Retrofitting buildings for energy efficiency is an extremely topical subject at the moment, given the carbon tax, climate change worries, major funding programs for energy efficiency initiatives from the federal government, and the emergence of Environmental Upgrade Agreements (EUAs). With everything we collectively know, as an industry used to doing building and energy upgrades as business as usual, it should be plain sailing.
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e should have (and typically believe we do have) all the information at hand to make the decisions that need to be made to get the right answers. When it comes to building performance issues, we have NABERS and sophisticated thermal and other simulation programs for benchmarking. When it comes to equipment, we have well accepted performance coefficients, and other rating and energy efficiency data. We even have greenhouse factors that, according to the federal government’s Greenhouse and Energy Data Officer (in a personal interview), are all that is needed to get the right answer when it comes to greenhouse emissions. In many instances, he would be right, and all the strategies above used properly would be enough; however, there are many instances in which the answers derived from these approaches are inadequate, for various reasons. Current approaches will often be single-system focused, for example air conditioning, lighting, façade or vertical transportation. The answers derived from the traditional approaches end up only looking at energy consumption and/or carbon emissions from operational inputs and outcomes. In focusing only on carbon and only at the operational stage, we are ignoring major impacts, such as carbon embodied in the products and materials within the building and fit-out, as well as all other non-carbon impacts. By focusing on carbon alone, we run the very real risk of transferring the environmental loads of carbon avoidance into other impact areas, whether that is biodiversity, toxics or other resources. Blindly moving down a path solely focused on operational carbon emissions to the exclusion of everything else is like taking a blinkered horse out
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onto an inner-city freeway. From a planetary point of view, we are likely to create scenarios in which we actually dramatically increase other impacts, only to find some sort of negative feedback loop we had no idea existed. So to avoid making these mistakes, we need to take a whole-of-life-cycle (WOL) approach to decision-making. The commercial benefits of this WOL approach are not so much in the energy savings, but in increasing the asset value, maximising human assets and protecting against future upward movements in the market for greener outcomes (there is no question that these are coming). The financial benefits of these initiatives, albeit potentially harder to create for retrofits than new buildings, are nonetheless strongly demonstrated, and have been proven time and again by studies such as the Green Building Council of Australia’s (GBCA) ‘Dollars and Sense of Green Buildings’, and Deloitte Consulting’s 2008 survey of companies that had undertaken green retrofits in the United States, which found: 33 100 per cent reported increased goodwill and brand equity 33 93 per cent reported a greater ability to attract talent 33 87 per cent saw improved workforce productivity 33 81 per cent saw greater employee retention 33 75 per cent saw improved employee health (thus fewer sick days). With the dramatic rise in corporate social responsibility (CSR) reporting, such as the Global Reporting Initiative (GRI), sustainability has become a core value in building brand value and credibility. According to Paul Hohnen, a Director of the GRI, ’LCAs are the beating heart of any company’s sustainability journey.’ Even CPA
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Australia, in their 2010 report ‘Applying sustainability reporting to decision-making: product focus and life cycle assessment’, state: ‘Information incorporating the indirect environmental and social effects over the product life cycle (utilising LCA) enables product-related decision-making by management and stakeholders to reflect sustainability considerations.’ Even back in 2006, 64 per cent of Australian Securities Exchange (ASX) stakeholders voted that ‘sustainability/ corporate responsibility is a subset of governance’ relating to the operation of the ASX’s own governing council. Smart companies like Grocon and Lend Lease are aware of the brand and marketing benefits of sustainability, and have embraced it as a core organisational value. Lend Lease has created a great sustainability vision for their landmark Barangaroo South Project in harbourside Sydney, having committed Barangaroo to being not just carbon neutral, but water-positive and zero-waste as well. To achieve this, they not only collect carbon information on the products they are proposing to use, but they also require summary LCA reports called Environmental Product Declarations (EPDs) from suppliers before
they consider using any particular product on the site. This enables them to make decisions about carbon impacts while considering whole-of-life-cycle impacts and minimising impact transference. So what is LCA? It is a rigorous process used to assess the environmental – and to some extent the health – impacts of a product, process or service by compiling an inventory of relevant energy, material inputs and environmental emissions data, evaluating the impacts of those inputs and releases, and then interpreting the results to create impact-related metrics that better inform decision-makers and sometimes stock markets. The most important thing about LCA is that it looks at all the impacts, from the raw materials, processing, manufacturing, transport, packaging and maintenance to end-of-life fate. Typically, the scope of raw materials to manufacturing completion is called ‘cradle to gate’ and the whole life impact is called ‘cradle to end-of-life fate’. Cradle to end-of-life is the scope most commonly used in the building sector. So using LCA is the best answer, even for assessing carbon emissions, but it needs to focus not just on the operational issues, but also on the impacts inherent in the
Green Energy Trading – rewarding sustainable choices
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Ric Brazzale 323312E RHS_Green Energy Trading | 1843.indd 24
reen Energy Trading is one of Australia’s leading environmental certificate agents. The independent agent is registered by state authorities to help businesses secure the financial incentives associated with environmental schemes. ‘The incentives for commercial lighting upgrades in New South Wales and Victoria are significant, and can help cover the installation costs,’ says Ric Brazzale, Managing Director of Green Energy Trading. ‘The New South Wales Energy Savings Scheme and the Victorian Energy Efficiency Target aim to make energy efficiency improvements more affordable, reduce ongoing energy costs, and contribute to the reduction of greenhouse gases,’ says Ric. ‘The documentation required for participation in these schemes can be confusing and difficult to prepare.
Green Energy Trading provides the support and advice required to increase the accessibility of these schemes for energy consumers and their solutions providers.’ Ric Brazzale, long-term spokesperson and advocate for environmental market development, leads a team of talented individuals who are passionate about environmental sustainability and active in facilitating the uptake of renewable energy and energy efficient technologies through available environmental programs.
To learn about the opportunities that these incentives present for your business, telephone 1300 077 784, email ee@greenenergytrading.com.au, or visit www.greenenergytrading.com.au 13/02/13 3:21 PM
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materials. Obviously, in a retrofit context, this would be limited to the new products, materials and systems. The sorts of results that come from an LCA analysis of products are illustrated by a small study we orchestrated with one of my company’s clients, looking at the environmental impacts of aluminium versus steel ceiling grids. The calculations showed that installing steel instead of aluminium ceiling grids in a 12-storey commercial office building could power the office lighting in the building for a year. Along with these savings came the reduction of large volumes of toxics emitted at the smelter, like fluorine compounds that continue to threaten both the inhabitants and the vineyards in the Hunter Valley and in the vicinity of other aluminium smelters. How many other similar instances of easily substituted gains like this can we find if we study options carefully with LCA? By the way, steel ceiling grids are less expensive, putting paid to the idea that sustainable solutions are always more expensive. There are many sustainable products out there that are less expensive, or as cost-effective, as business as usual (BAU) products; sometimes, they might actually even be BAU products. The only information missing is the LCA data to prove their green credentials. LCA is increasingly being used across the industry as a result of recent projects like the Building Products Innovation Council’s (BPIC) Life Cycle Inventory (LCI) Development program that, over the last five years or so, has developed LCI for 10 major building sector supply chains and the Australian Life Cycle Society’s AusLCI database project, adding to data availability. As a result of these programs, more and more manufacturers have made LCA-based data available to enable building owners’ green procurement decisions to be made on WOL criteria.
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Other similar progams include: 33 the Urban Development Institute’s (UDIA) EnviroDevelopment program (which is engaged in certifying everything from a 15,000-dwelling greenfield development to inner-city office buildings, and which has LCA-based materials credits) 33 the LCA-based alternative compliance pathway for the Materials sections in Green Star, launched in 2012 by the GBCA 33 the introduction in 2010 of Global GreenTagCertTM, an LCAbased ecolabel that rates products’ whole-of-life sustainability performance and now has over 350 products certified. To facilitate this increase in the uptake of LCA, ALCAS is formulating with NZLCA an Australasian Environmental Product Declaration Scheme to improve the portability of reporting results between product EPDs, as well as beginning an LCA Assessor Certification program. In July this year, ALCAS will be holding its biannual conference in Manly, Sydney. LCA-based product information will become not only more accessible, but also much more likely to be used within the construction sector into the future. As more and more new buildings occupy the ‘high-end’ sustainability or LCAassessed building space, how long will it take for the market attractiveness of retrofitted buildings to have to measure up to the same standards or be marked down by the market?
David Baggs is President of the Australian Life Cycle Assessment Society (ALCAS). He is an award-winning chartered architect, sustainability consultant and life cycle practitioner with over 30 years’ experience in green buildings and products. He is also Program Director of the Global GreenTagCertTM Certification program.
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company profile
company profile
Upgrading your building doesn’t have to be agonising
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n addition to increasing electricity prices due to carbon pricing and the need to promote energy-efficient strategies, the torment of ageing buildings and associated facilities affects your bottom line. This problem will not go away without the requirement of restoration, renovation or conversion of the structure at some stage of the building’s life cycle – even if it’s just to appease the demands of your current or future clients. When upgrading your building’s appearance, considerations of other responsibilities relating to design conformities for access and mobility need to be assessed and made compliant with the Australian Standards; otherwise, liabilities may fall upon the building owner, especially when pressured by litigation claims. Dolphin Point Constructions (DPC) is a multi-award winning builder in both commercial and residential construction. With over
30 years’ experience in the building industry, we are available to provide the facilities management industry with a wide range of services, from building consultancy, accessibility management, dilapidation reports and rectification through to complete construction and renovation services. Principal Glen Thomson is an accredited building consultant with the Master Builders Association who has a number of his own commercial facilities, which gives the company a unique perspective in light of building owners’ needs, financial constraints and requirements. We understand the demands and restrictions of tenanted buildings and occupied facilities; that’s why we are able to help you develop your redevelopment strategies with the least amount of impact on your client.
Coles Ulladulla (2012) Renovation and compliance upgrade to AS 1428
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company company profile profile
Quality sealing solutions Raven has grown to become one of the most trusted brands in the building hardware industry, providing high-quality, innovative door and window sealing systems for facilities managers, architects, designers and builders.
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aven has become synonymous with quality, value and reliability backed by service excellence, which is why it is the brand that facilities managers can rely on.
Selection made easy The Raven catalogue is designed to make the product selection process as easy as possible by highlighting relevant standards and regulations in conjunction with suitable sealing systems.
Leading-edge research and accredited testing Raven’s access to an in-house NATA accredited testing facility means that we are constantly developing new ways to respond to the rapid advances in the building industry. Every design and invention is rigorously tested to comply with Australian and international building regulations. Continuous monitoring and accreditation to international quality standards ISO 9001 underscore Raven’s determination to deliver products and systems that are proven to be the best.
A sealing system for every situation Raven sealing systems seal gaps around doors and windows against a combination of intrusions and leakages. They can provide a complete and continuous seal for all door and window types without impeding normal use. The sealing systems provide sealing against the intrusion of sound, fire and smoke, rain, cold draughts, dust, embers, light, and insects and vermin. They also provide sealing against the leakage of heating and air-conditioning to allow energy savings.
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Professional service and advice Raven’s specialists are always on hand to provide expert guidance when it comes to selecting the right sealing system. With our free-call technical assistance, we can help customers achieve their individual project goals.
New catalogue out now! Raven’s latest Door & Window Sealing Systems catalogue No. 112 is now available, and includes many new and unique products that complement our extensive range. Complete specification and reference information is included, featuring over 50 independently tested and approved sealing systems that meet the requirements of the latest Australian NCC-BCA building code. For more information visit www.raven.com.au
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Ensure NCC - BCA Compliance with Raven Door & Window Sealing Systems Ensure NCC - BCA Compliance with Raven Door & Window Sealing Systems
Ravenisisone oneof of the the most most trusted in in thethe building hardware industry providing Raven trustedbrands brands building hardware industry providing innovative door and window sealing systems for architects, designers, facility managers and and innovative door and window sealing systems for architects, designers, facility managers home renovators. home renovators. Raven has become synonymous with quality and value backed by service excellence
Raven become withbuilders qualitycan andrely value whichhas is why Ravensynonymous is the brand that on. backed by service excellence which is why Raven is the brand that builders can rely on. For more information contact us on 1800 888 123 or visit www.raven.com.au
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company profile
Flooring with purpose
F
looring is often given minimal consideration in building design and refurbishment beyond the initial appearance, yet selection of products that are not fit for the intended purpose is the number one reason for flooring failure and increased maintenance costs. Facilities managers are increasingly being asked to take on risks associated with the operation of facilities they manage, particularly with the recent spate of Public Private Partnership (PPP) projects in health and education across the country. As government and corporates alike look to shift risk to service providers, FMs need to be not only focused on OH&S risks, but may also have risks associated with capital purchase and ongoing maintenance. OH&S issues with flooring generally centre on slips and trips. But fatigue from long periods of standing or walking on hard floors, and strain injuries from high push/pull forces on rolling equipment in carpeted areas are also significant issues. Slip resistance of pedestrian surfaces is an especially complex risk to manage, as there are generally no regulatory requirements. The Australian Standards definition of ‘Slip Resistive’ clarifies the objective for slip resistance of pedestrian surfaces: ‘A pedestrian surface where the viable friction is sufficient to enable a person to traverse that surface without an unreasonable risk of slipping.’ All pedestrian surfaces in and around buildings must be designed and maintained to ensure there is no ‘unreasonable risk of slipping’. By definition, the surface must retain these characteristics for the usable life of the surface.
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Many things can reduce the effective slip resistance of surfaces over their life, including: 3 traffic 3 contamination with dirt or debris 3 mould or fungal growth 3 cleaning chemicals 3 cleaning equipment 3 age of the surface 3 breakdown of materials. Designers must consider the likely change in slip resistance and the cost of maintaining an adequate slip resistance over the usable life (not warranty period) of the surface material. It is essential that cleaning and maintenance chemicals, equipment, frequency and methodology are considered in the context of maintaining an adequate slip resistance of the surface. To monitor changes of slip resistance in service, an in situ testing program should be undertaken. Flooring risks are not limited to OH&S. Flooring maintenance can cost as much as 10 times the capital cost throughout the life of the product. Poor product selection can increase maintence costs and even lead to premature replacement. The financial risk may or may not be borne by the FM, but the time associated with dealing with these issues will directly impact contract profitability. FTG offers dedicated business streams to provide comprehensive services for owners, managers and occupants of commercial properties, including technical services, project services and property services. View our site at www.ftg.com.au or call 1300 668 456.
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FLOORCOVERING TECHNOLOGIES GROUP
C
M
Y
CM
www.ftg.com.au
MY
CY
National Customer Service Centre: 1300 668 456
MY
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flooring
Choosing flooring for your office – what to consider Image © Mark Eslick
Choosing flooring should be a fairly easy decision. Does it fit with your colour scheme? Does it fit within your budget? Does it fit your purpose?
T
hese are certainly the primary considerations when choosing flooring, but when you start to really think about the options available, you’ll discover the many different features that are offered by the various choices in flooring. Below is a run-down of some of the options available to you, and why they might suit your needs.
Carpet: Long the go-to flooring of choice, carpet is popular because it is aesthetically versatile as well as being highly functional. The choices when it comes to carpet can seem to be endless; however, try to narrow your choices down to high-quality products. The higher the quality, the more durable, and the longer the life span of your flooring. Choosing a cheaper option may lead to earlier replacement, meaning it may not be the cheapest option at all. Carpets also need to be selected for their practicality with respect to the area of installation. Highly trafficked areas need hard-wearing carpet more than they need plush pile. The colour and pile should be chosen for their resistance to showing the signs of wear.
Carpet Tiles: Replacing conventional carpet can be costly, and can disrupt the work environment. A good alternative comes in the form of carpet tiles, which are gaining popularity, and the range of tiles available is broadening. This allows for unique flooring designs, and easy replacement of particular tiles that may be more worn than others, or that may become damaged. The tiles are straightforward to install and replace, and many options on the market are produced via sustainable manufacturing processes.
Timber: Polished timber is a modern, appealing flooring option. There are two ways to achieve the aesthetic appeal of timber flooring: genuine polished timber boards, and floating floor panel systems. Floor panels are easy to install and look fantastic, whereas floorboards provide a longer lasting, more solid effect.
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Be aware of the acoustics of your space before installing floorboards, as the noise associated with this type of flooring can interrupt productivity in an office environment.
Vinyl: Vinyl, while having its place on the turntables and floors of old, has come into its own. Today, vinyl flooring manufacturers offer a huge range of colours and styles that can not only enhance the office space, but can also modernise it. Vinyl flooring can be laid with cushioned underlay to make it comfortable underfoot, and is great for areas such as kitchens due to its water resistance and ease of cleaning. Vinyl is not appropriate for all spaces, given that its surface can become slippery. There are different slip ratings available, so research the right vinyl for your purpose before you make your decision.
Tiles: Often associated with the floors of Mediterranean homes, tiles are durable, hard-wearing and often easy to clean. These days, tiles are not relegated to the realms of bathrooms and kitchens – they can create an impressive look in an office, as well. There is a dizzying range of tiles available, from patterned, embossed, polished, matte, stone, porcelain and many other options. Ensure that the tiles you choose are suitable for your purposes, and that they’re laid correctly. A poor tile installation can lead to endless problems and cost, so do it right the first time.
Epoxy Paint: If you’re working in an area with a concrete floor, such as a warehouse, epoxy paint is a great option, particularly if spillage in the area is a risk. Epoxy paint is particularly easy to clean, making it a great option for industrial workspaces. The costs for this type of flooring are low, and the right choice of colour can really enhance your space.
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company profile
company profile
BaitSafe®: The next generation bait station technology Described as ‘the most revolutionary change to bait station design in 20 years’, Adams Pest Control and BaitSafe® offers a HACCP-certified alternative to conventional methods of traditional surface baiting. BaitSafe® is certified throughout the food industry for use in controlling rodents and crawling insects. How is BaitSafe® different from traditional bait stations?
B
aitSafe® can be installed into walls, ceilings, flat-roofed areas, eaves, floors, between floors, and in cupboard bottoms, with many more applications allowing Adams Pest Control to inspect, monitor and/or place bait directly into areas where pests live and breed. In contrast to traditional bait stations, BaitSafe® is not exposed to the public, and therefore eliminates the risk of staff, children or pets coming into contact with any bait. Because it is an internal station, it is also good for the environment. Thanks to its unique design, BaitSafe® is the first product on the market to offer such a discreet solution and window into ‘their world’. Once installed by Adams Pest Control, pests living in the walls or ceilings have easy access to the bait – without coming into contact with humans.
Simple and safe maintenance Once installed, BaitSafe® is very easy to monitor. Using a key, Adams Pest Control can quickly access the bait, check for evidence of pests,
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and replenish the bait supply if needed. Unlike conventional baiting methods, no ladder is required to monitor BaitSafe® units that are installed in ceilings; instead, pest controllers can screw a standard extension or paint pole into the key to open the unit from floor level, thereby reducing service time, simplifying the maintenance process, and removing ‘working at height’ issues. Adams Pest Control General Manager, Peter Taylor, is proud to be associated with such an innovative product, and fully supports the use of this next-generation baiting device. For more information, contact Adams Pest Control VIC on 03 9645 2388, SA on 08 8297 8000, or visit adamspestcontrol.com.au. BaitSafe® has won the prestigious Food Magazine’s Innovation Award for 2012 in the Food Safety and Innovation in Non-Food category. For this category, the product or service needs to be directly applicable to the Australian or New Zealand food and beverages industries, and offer an aspect of safety within the food processing environment.
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company profile
Perpetual PropertyCare continues to celebrate success
P
erpetual PropertyCare continues to strengthen its market share within the education facilities services sector with the most recent contract procurement. This success has positioned the company to officially open a Queensland state office based in Brisbane within the premises of our sister company, Trojan Workforce. These are very exciting times for Perpetual PropertyCare as we continue to cement our position as one of the industry leaders of the facilities services market. A key focus for Perpetual PropertyCare in 2013 will be to expand the Queensland operation through personalised, specifically tailored, quality services that are the fundamental key to Perpetual’s success thus far. Our Brisbane office will be under the management of Daniel Diaz, who has been newly appointed as the Queensland State Manager. Daniel comes with a wealth of knowledge and has been working within the Perpetual group for many years.
Newly appointed Queensland State Manager, Daniel Diaz
Innovative Solutions
Your Choice is Clear
for the best sustainable solutions in > Offices > Educational Facilities > Event Venues > Industrial Sites
Reliable Service
Quality Care
Contact Perpetual PropertyCare p 02 9641 2021 f 02 8020 6608 info@perpetualpropertycare.com.au www.perpetualpropertycare.com.au
The Right Choice
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maintenance & essential services
Revised fall prevention equipment standard bad news for facilities managers The most popular safety-related Australian Standard of all time, AS1657, has been revised for the first time in 20 years. Facilities managers are unlikely to be happy with the outcome, writes member of the AS1657 committee Carl Sachs, who explains the major changes.
T
he draft revision of AS1657, which covers the selection, design, risk assessment and testing of fixed platforms, walkways, stairways and ladders, has more than doubled in size, from 30 pages to 75. There’s more detail and substantial new requirements. Surprisingly, the standard places enormous emphasis on the use of fall arrest equipment. The word ‘harness’ appears no less than 21 times, creating the perception that harness-based solutions are now preferred, rather than staggering ladders, or using inclined ladders, step-type ladders and so on. On the other hand, the legislation unambiguously states that PPE-based solutions are the least preferred means of controlling falls. This is bad news for Australia’s facilities managers, who understandably expect that following an Australian Standard will provide a reasonable defence in a prosecution. Of course, it is not always practicable to install a 1.5-metre midway landing platform and stagger ladders. This is particularly common when ladders need to be installed to significant heights where there isn’t space to install platforms. Acceptable examples are wind turbines, telecommunication towers, and in very deep confined pits where heights exceed the sixmetre threshold but there isn’t space for midway landings. In these instances, ladder safety lines are a practicable solution, since there simply isn’t the space to install platforms.
The supervisor’s responsibility, user skills and competency, and ability to rescue the user in the event of a fall need to be considered in these circumstances. In the telecommunications, power and mining industries, the skill level of harness users is generally higher. Rescue plans are also usually in place, as is a second person on site, to rescue a fallen person quickly enough to prevent deadly suspension trauma. In contrast, users in the facilities or maintenance environments on operational buildings (such as air conditioning mechanics and roofing plumbers) mostly work alone, and relying on self-rescue is not permitted under the newly released COP for Managing the Risk of Falls at Workplaces. There is a place for harness-based solutions, but only when it is not practicable to install permanent and user-friendly controls like inclined ladders, enclosures and midway landing platforms. Why? First: safety. Second: compliance. Third: ‘safe work at heights’ systems centred on harnesses demand routine inspection, a second user, rescue equipment, rescue planning and procedures, PPE-like harnesses and lanyards, the cost of administration, induction and supervision, and the cost of recertification in year 10 and year 15. In other words: a lifetime of extra risk, added red tape, and costs for facilities managers. On the other hand, builders will be delighted. They do not have to deal with the ongoing supervision and lifetime costs, so they
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maintenance & essential services
will continue to install vertical-type ladders – the cheapest upfront cost available. Similarly, architects will continue to specify vertical-type ladders, since they primarily rely on advice from suppliers, who will now have this standard to justify their product.
The 20-year-old standard was not clear on the purpose of these platforms, and although they may have technically complied, risk assessments revealed the high risks associated with them.
Guardrailing Selection of the means of access Thankfully, the revised draft of AS1657 does help facilities managers answer another big question: stepladder, rungs or staircase? Figure 1 summarises its hierarchical approach. In short, use access equipment with lesser inclines rather than steep ones wherever practicable. Use stairways at an incline of 20 to 45 degrees, for example, before using step-type ladders. Similarly, use a step-type ladder at 60 to 70 degrees in preference to a rung-type ladder. Step-type ladders are designed to let users’ legs do the work, and on level, 100-millimetre treads, while rungs at more severe inclines may be as thin as 20 millimetres. So, what does ‘practicable’ mean? Definitely not cost, but it could be space constraints. A three-metre step-type ladder takes up around 1100 millimetres on the ground when clearances are considered, and a vertical rung ladder takes up around 900 millimetres of floor space. Other practicability considerations are the skills and capability of the people using the equipment. Much more upper body strength is required to climb a vertical rung ladder than a stepladder. Even though users may be strapping tradespeople, they often need to carry tools up ladders, and these extra loads must be taken into account.
The draft revision of AS1657 brings new clarity to guardrailing, which is required on platforms over 300 millimetres. Although called up in the BCA (Building Code of Australia), it was not well understood, implemented at site or monitored. New to AS1657 is the installation of guardrailing where there is a risk of falling off inclined walkways and rolling down, even if more than two metres from an edge. The committee recognised that if, for example, you step off a walkway eight metres from the edge of a 20-degree sawtooth roof, you are likely to roll all the way to the edge and fall. Figure 1
Ladder cages and enclosures Questions have been raised about the effectiveness of ladder cages, but they do give the user a justified sense of containment and direct them toward the platform, they can act as a rest device if you lean against them, and, when used with landing platforms, they are suitable controls. On the other hand, they can interfere with a rescue when used on very high vertical ladders. The fixing of cages to the stiles has been altered, because many people climb ladders with their hands on the rungs, rather than on the stiles.
Roof access AS1657 deals with roof access, mostly for the inspection, installation and maintenance of roof-mounted plant and equipment. It specifically discusses the requirement to install guardrailing and walkways over brittle surfaces like Laserlite and asbestos cement sheeting. The standard also requires guardrailing around roof perimeters where fall hazards exist. This requirement has been around in fall prevention legislation for many years, but it gains extra emphasis in this draft revision of AS1657.
Platforms The current standard mandates an interim landing platform when rung or stepladder heights exceed six metres. The platform must be a minimum length of 1.5 metres, with adequate clearances around the base of the ladder to ensure that the platform is beneath the ladder and the person would access the ladder from a safe point on the platform. The ladders are staggered, with cages for extra protection. Sidemounted ‘midway’ landing platforms are no longer acceptable. continued on page 36 34
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company profile
company profile
Secure your reputation FM professionals can lead the way
P
itney Bowes, the market leader in document management systems and innovative customised solutions, is proud to introduce pbSecure™, the latest technology ensuring authenticity of both physical and digital documents. Fraudulent and counterfeit documents are on the rise. Forged degrees, identity cards, financial records and other falsified information can pass undetected through organisations and have a detrimental impact on business. Forged documents damage a company’s integrity and reputation; in extreme cases leading to operational risk, and financial and legal ramifications. pbSecure™ uses proven, globally deployed technology, and is the ideal asset security solution for a range of commercial and public sector applications, including: 3 educational institutions, to track qualifications 3 government bodies, for managing document security and revenue collection 3 finance departments, to streamline micro transactions 3 human resources, to verify identity and credentials. pbSecure™ is efficient, cost-effective and easy to implement, ensuring document security and authenticity without the need for traditional time-consuming verification processes. The pbSecure™ evidencing solution enables documents to be secured at the point of origin using proven cryptography and encryption technology through the pbSecure™ code, allowing documents to be instantly stored and verified, online or offline.
For more information on pbSecure™ visit www.pbsecure.com.au, scan the smart code below or call Pitney Bowes Solutions Factory on 13 23 63.
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maintenance & essential services
continued from page 34
Access hatches Recognising that an open hatch is a fall hazard, the revised AS1657 prescribes perimeter protection to hatches. It also deals with the ergonomic and safety issues for access and egress.
If you can’t comply The committee realises that workplaces may not be able to meet AS1657, particularly when it comes to structural constraints on existing buildings. For example, an overhead steel beam may obstruct the rear ladder clearance, creating a situation in which it’s not possible to meet compliance without major structural works. If so, do a risk assessment, document the reasons for noncompliance, and then record it on the equipment, which is now a new requirement of the standard.
Testing, performance-based and deemed to comply There are a number of ways to claim compliance with AS1657: 33 Testing: testing equipment against the performance-based requirements 33 Engineering, calculation and certification: having a certified structural engineer run calculations and computations on the different material sections and fixings to ensure they will stand up to the load requirements 33 Deemed to comply: some fall prevention equipment (like guardrails), has prescribed material sizes and fixings. When fixed together as prescribed, the system is deemed to comply and does not require testing or independent engineering. AS1657’s requirements to test guardrailing for its ability to withstand loads have changed, while new requirements have been created for stairways and ladders. It is also very specific about reporting, spelling out the need for detailed drawings, identifying the manufacturer, the test forces applied, the test facility, approval by an individual, and so on. Recognising a widespread lack of knowledge about appropriate testing, the committee decided to increase the level of visibility and requirements for certification.
Labelling and documentation To complement the testing, engineering and ‘deemed to comply’ provisions, the revised standard requires that equipment is clearly identified and labelled to identify conformances, or the lack thereof, on ladders, guardrailing, stairways and platforms. This effectively amounts to certification of the product.
The certification labelling identifies: 33 the manufacturer or fabricator of the piece of equipment 33 the installer of the equipment 33 the certifier of the equipment.
Why does it all matter? This is safety-critical equipment, and lives depend on it. Over the last seven years, three times as many Australian people died from falls in the workplace as did in the war in Afghanistan. The community cannot ignore this cost. We must be confident that the lifesaving equipment on our roofs really can save lives, and a relevant, manageable and well-used AS1657 is perhaps our best bet.
About the author Carl Sachs, whose experience in safe work at heights spans two decades, is the Managing Director of national falls prevention specialist Workplace Access & Safety. He represents the Master Builders Association on Australian Standards committee AS/NZS1657, and FMA Australia on committee AS1891. He works closely with the major corporations and government to increase the awareness of falls issues, to achieve compliance throughout Australia. The AS1657 committee The active members of the committee include representatives of the WorkCover authorities, electrical industry users, The BCA, Master Builders, tradespeople, rope access associations and component and material suppliers to the industry.
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company profile
company profile
Cat® – cooling you can depend on
E
nergy Power Systems Australia (EPSA) offers a total solution to your temperature control needs. They provide delivery and setup, ongoing maintenance and backup service, and pack up and removal at the end of your hire period. You can rent for a day or however long you need. EPSA’s Cat® Rental Power temperature control fleet helps you through planned maintenance, shutdowns, emergency breakdowns, seasonal demand peaks and the summer heat. And you can respond quickly to address peak loads, process bottlenecks, critical processes, OHS&W and other time-sensitive unforeseen disruptions. Cat Rental Power has the latest in cutting-edge technology from Caterpillar with reliable and dependable cooling tower, fluid chiller and air-conditioning equipment on hand. You can rent for a day or however long you need. EPSA responds quickly to anywhere in Australia and all products have undergone rigorous testing. ‘We do what is necessary to meet your deadline in all time-critical situations,’ says Marcel Heijkoop, national sales manager, Cat Rental Power. Cat Rental Power provides solutions from 4.9 kW to multimegawatt turnkey installations with: 3 fluid chillers 3 cooling towers 3 industrial air conditioners 3 air handlers 3 heat exchangers 3 ancillary equipment 3 all designed to meet Australia’s harsh conditions.
Features 3 3 3 3 3 3
robust transport frames VSD-controlled fans VSD compressors high-static fans onboard distribution for ancillary equipment automated chemical dosing system.
Advantages 3 3 3 3
ease of transport and installation lower power usage additional treatment of water easy setup and control.
Benefits 3 3 3 3
cost savings with transport and installation reduced operating costs improved air flows reduced operator action and management.
Available 24/7, Free Call 1800 800 441 Website: www.energypower.com.au Telephone: 1800 800 441 LinkedIn: /company/energy-power-systems-australia Facebook: /EnergyPowerSystems Twitter: @EnergyPowerSys YouTube: /EnergyPowerSystems
DON’T LOSE YOUR COOL. We take care of your HVACR equipment, so you can focus on your business. Rent for a day or a lifetime.
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We help you through planned maintenance, shutdowns, emergency breakdowns, seasonal demands or summer heat. Quick response to anywhere in Australia with solutions, service and support, 24/7, 365. Get the latest technologies and products every time, no maintenance or storage costs, and enjoy 24/7 support. RENT Caterpillar® performance, reliability and efficiency. Power generation, compressed air, temperature control. To rent now call 1800 800 441, visit www.catrentalpower.com.au ONE NETWORK. ONE CALL 1800 800 441. 24/7 SUPPORT.
MELBOURNE | SYDNEY | NEWCASTLE | BRISBANE | ROMA | GLADSTONE ROCKHAMPTON | TOWNSVILLE | CAIRNS | DARWIN | KARRATHA | PERTH KALGOORLIE | ADELAIDE | PORT MORESBY
© 2012 Caterpillar All Rights Reserved. CAT, CATERPILLAR, their respective logos and “Caterpillar Yellow” as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.
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company profile
Proven non-maintenance energy reduction
F
or most wide-area, low-rise buildings from Melbourne to Darwin, key factors can add considerable operating expense through air-conditioning energy demands: 3 Solar heating is a primary source of excess heat in metal and concrete roofed buildings. 3 A metal roof can rise to two to three times as hot as the ambient air temperature. 3 Air conditioning can cost three to four times more in cooling than heating. 3 Peak thermal loads stress air-conditioning plant, reducing its efficiency, shortening its effective life and increasing maintenance requirements. Scientists at the University of Technology Sydney (UTS) and the Queensland University of Technology (QUT), Faculty for the Built Environment, found that highly effective cool-roof coatings like SkyCool, with its combined thermal reflection and radiation properties, can cause more heat to exit the building than would otherwise enter through its roof. This results in a strong net cooling within the building with respect to the solar load on the roof. This effect is most pronounced in buildings where the roof is the dominant external surface. Typical buildings include shopping malls, airports, data centres, warehouses – especially where lower temperatures are required – and licensed clubs. In support of the extensive laboratory examinations by UTS and QUT, the SkyCool cool-roof coating was subjected to a series of fullsize building field trials of up to two years to account for the many variables that occur in the natural environment. There is now a reliable body of independent and robust performance measurement data that demonstrates the universities’ findings of high-energy saving capability of this technology, at least in the case of the patented SkyCool energy reduction coating. The below table outlines sub-metered air-conditioning energy savings ranging in buildings from Darwin to Melbourne. With
increasing energy pricing, some property owners are finding their cool-roof investment returning in less than two years. Further investigation by Lend Lease engineers found that cooling of this calibre actually creates a cool microclimate, which envelops the entire building – making a cool oasis in the middle of the urban heat island. For further information please visit www.skycool.com.au or call Rex Lehmann on 02 9477 4095.
SkyCool Measured Energy Reduction
Operational Improvement
Charter Hall owned shopping mall
31%
69
kWhr/m2/a
Woolworths 2002 trial *
S.E. Qld
47%
67
kWhr/m2/a
Woolworths 2010 trial *
S.E. Qld
53%
80
kWhr/m2/a
Westfield Mall (Wollongong)
31%
75
kWhr/m2/a
Melbourne Airport
41%
Not Advised
kWhr/m2/a
Div. Of Westfarmers (tropical wet season) *
51%
94
kWhr/m2/a
Department of Defence – DARWIN
61%
Not Advised
kWhr/m2/a
Club Menai South Sydney
37%
42
kWhr/m2/a
Overall average
44%
71
kWhr/m2/a
* Dual building trials = parallel & pre-post rigorous measurements for 1-2 years
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airports
Perth Airport redevelopment
With both domestic and international passenger numbers doubling over the last seven years – up to three times the growth at other capital city airports – it was essential to transform Perth Airport to improve the customer experience. The unique demands placed on the airport, particularly with the fly-in, fly-out (FIFO) resources sector demand, have driven the need to make substantial investments.
A
s a result, the $750 million redevelopment is well underway, and consists of three major projects. The first project, the new Domestic Terminal (T2), opens in early March 2013. This terminal has been built to primarily service the resources sector, as well as regional Western Australia and some interstate services, and is located next to the current International Terminal (T1). The second major project, the international arrivals expansion, commenced in May 2012 and is scheduled for completion in mid-2014. This project involves expanding the immigration and biosecurity (quarantine) processing areas and separating them over two levels, as well as doubling the size of the inbound duty-free and baggage reclaim areas.
The construction contract for the most significant redevelopment project, the new Domestic Pier and international departures expansion, has been awarded, and construction will commence shortly, with an estimated completion date of mid-2014. This project is integral to the consolidation of Perth Airport, which will see all commercial air services co-located by 2020. This is the largest and most complex component of the redevelopment of Perth Airport, and it will transform the current International Terminal into a fully integrated terminal, offering both domestic and international services in the one location. ‘We are very excited about this project, as it sees the beginning of the consolidation of all commercial air services to the international
T1 new departure hall
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airports
The contemporary design of the Domestic Pier, which will become home to Virgin Australia in 2014, maximises the use of natural light and has expansive views across the airfield
precinct,’ says Brad Geatches, Chief Executive Officer, Perth Airport. The contemporary design of the Domestic Pier, which will become home to Virgin Australia in 2014, maximises the use of natural light and has expansive views across the airfield, well situated resting places, and an appealing mix of retail and dining options, centrally and conveniently located. The international departures expansion will see a new, splitlevel departures area and two new A380 gates, the first of which will be delivered within the first 12 months of the project.
Management Major infrastructure, like airport terminals and related airfield infrastructure, takes a significant amount of time to design and construct.
Virgin Pier
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airports
‘Much of the time has been taken in negotiating with stakeholders and tenants to ensure that the facilities meet or exceed their requirements, reaching agreement with the airlines, and designing new facilities that will provide our customers with a convenient and enjoyable experience,’ says Mr Geatches. Forward works have been, and are continuing to be, undertaken to minimise the impact on customers and airport operations. This includes a $75 million program of airfield works to extend the taxiways and aprons to support the new facilities, the realignment of Horrie Miller Drive leading to the current T1, and the construction of a new bus and two new taxi pick-up areas near T1.
Sustainability features Environmental sustainability to maximise energy and carbon efficiencies has been a primary consideration for Perth Airport. A new cogeneration power plant will not only provide power for the new T2, the Domestic Pier and expanded T1, but it
will also reduce greenhouse gas emissions by approximately 55 per cent due to energy savings and the use of gas. In addition, T2 features: 33 rainwater harvesting and re-use for toilets and gardens, with 2000 cubic metres of underground storage capacity 33 underground ducting of ventilation for air conditioning to reduce energy use 33 a sophisticated building management system to reduce energy consumption during operations. Environmentally sustainable features have also been incorporated in the construction of the new Domestic Pier to reduce energy consumption, particularly related to thermal and solar performance and the ‘building envelope’ (including the roof, windows, façade and sun shading). Maximising the use of natural light to minimise power usage, and installing cleverly designed panels that can be positioned to provide shade from the sun, will also reduce the demand for air conditioning.
TWA terminal with new Virgin livery
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company profile
company profile
Need to upgrade your UPS? Choose the Cat® Flywheel UPS for: 3
3
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Lower operating costs: 3 class leading energy efficiency – 98 per cent at full load, 96 per cent at partial loads 3 no cooling required – operates up to 40 degrees Celsius continually. Lower maintenance costs: 3 inherently reliable with a high MTBF (+1 million hours) 3 simple, robust design with very low-maintenance requirement. Small footprint, big power: 3 uses a fraction of the space necessary for a battery UPS system 3 reclaim space taken up by battery cabinets and racks.
The new Caterpillar CPM combines a Cat® Flywheel UPS, Cat® Diesel Generator and an Automatic Transfer Switch (ATS) packaged in a sound attenuated and factory-tested ISO standard container. It is designed to provide seamless, continuous power in a simple and complete package, delivering constant power protection against surges, sags and power interruptions that can halt business or cause loss of valuable data or system capacity.
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Maybe a Caterpillar Critical Power Module (CPM) with generator, UPS and switchgear within a shipping container is the way to go. Contact your EPSA/Cat® dealer for more information. A UPS system protects computers, data centres, telecommunications equipment and other critical equipment where an unexpected power disruption could cause serious loss. Greg Conrad, EPSA’s UPS Business Development Manager says, ‘The simple design and high reliability of the Cat® Flywheel UPS means less maintenance and fewer interruptions, and this results in significant annual savings.’ He adds that its high efficiency and ability to operate at higher temperatures also reduces air-conditioning and electricity costs over the long life of the product.
Find out more at www.energypower.com.au or give Greg a call on: 0418 670 485.
FACILITY PERSPECTIVES | VOLUME 7 NUMBER 1
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member survey
More women entering the FM industry Of the female respondents to the recent FMA Australia Member Survey, 44 per cent joined the Association in the last year, reflecting a strong trend towards greater gender equality in the facilities management industry.
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onducted regularly, the results of the FMA Australia Member Survey form a cornerstone of the Association fulfilling its role as the peak national industry body for facilities management. The Survey is developed by the Association’s Advocacy and Research Team, with oversight provided by the Marketing and Membership Portfolio Group and key staff members within the National Office. The Survey results reflect the trend of female professionals developing their careers in facilities management as opportunities arise through new projects and the retirement of more senior professionals (who remain more likely to be male). Of female professionals, 61.3 per cent were aged between 26 and 45 years, with 35.5 per cent having been in the industry for five years
or less. Meanwhile, 59.4 per cent of male professionals are aged 46 years or older, and on average have 15.2 years of experience. Female professionals were more likely (92.3 per cent) to have their membership paid by their employer, indicating a strong level of organisational and/or managerial support for them to engage with the industry through the Association. Male professionals are also more likely to split their attention across multiple memberships, with female professionals more likely to focus only on the Association.
Other key results The following are some of the other key results from the Survey: 33 The overall majority of respondents were located in metropolitan locations, with only 10.5 per cent in regional areas. 33Of respondents, 20.5 per cent indicated they were part of a team membership, with 27.3 per cent stating their organisation would be interested in a form of corporate membership. 3381.1 per cent of male and 83.3 per cent of female respondents saw the value for money of events as three stars or higher. 33For most types of event presented by the Association, respondents indicated that a frequency of every two or three months was most preferred. 33Depending on content, between 62.1 per cent and 81.8 per cent of positive responses would prefer email communications to be either fortnightly or monthly. 3394.9 per cent of respondents stated that they were aware of the FM Industry Awards for Excellence. 3385.6 per cent of all respondents indicated that they were interested in undertaking further professional development. 33A majority of respondents found the quality of content and production quality of Facility Perspectives magazine to be of at least four stars (80 per cent and 62.6 per cent respectively) The Survey also found that 91 per cent and 94.4 per cent of respondents respectively found the customer service and industry knowledge of National Office to be of three stars or above.
For more information, contact the Advocacy and Research Team via policy@fma.com.au.
Louise Rowe, 2012 Member of the Year, with Nicholas Burt, Chief Executive Officer (left) and Steve Taylor, Immediate Past Chairman (right)
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company profile
company profile
Get compliant! DTAC®, who pioneered architectural tactile ground surface indicators in Australia, also offer a unique designer range of stair and edging products.
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TAC® continue to deliver the most aesthetic NCC-BCA compliant solutions available, working closely with architects, designers and facility managers to exceed form and function expectations on every project. DTAC’s edging designs have transformed the manner in which you can detail a stair edge, nosing, connections and many other floor and joinery edging requirements. DTAC® provide a practical and individual approach to prevention, protection and compliance of stair edging and floor tactiles. DTAC® have recently launched the DTAC Designers Edge™ range of architectural edging, which comes in a variety of patterns and an array of versatile flat, inlay and angle designs. DTAC Designers Edge™ is finished exclusively in hard anodised aluminium, and, where indicated, is fully compliant with the new National Construction Code (NCCBCA) as well as AS/NZS 1428.4 and the Disability Discrimination Act (DDA).
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When choosing DTAC, you receive beautifully crafted stair and floor edging, and you can be sure it is backed by DTAC, Australia’s most trusted name in architectural tactile ground surface indicators.
DTAC expertise DTAC offer free advice in interpreting Australian Standards 1428.4 (2009), HB 197, AS/NZS 4586, the NCC, the DDA, and the Access to Premises code and how it applies federally. DTAC is pleased to assist at concept stage for all projects. Architects, interior designers and builders can incorporate DTAC’s tactile ground surface indicators and the Designers EdgeTM range into any public, commercial or residential project, to ensure NCCBCA compliance. For more information contact DTAC: t: 1300 793 478 f: 1300 780 628 | e: sales@dtac.com.au | w: www.dtac.com.au
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technology and innovation
FM Software Survey, Australia 2012–13 The results of the first survey of facilities management software use in Australia show that organisations are deriving benefits, but could gain even more.
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f respondents, 82 per cent say that facilities management software made service provision more efficient, 73 per cent indicated that software provided a better quality of data, and 78 per cent stated that it allowed for better auditability. These are the headline findings from the Facilities Management Software Survey conducted by the Facility Management Association of Australia in association with FM Software provider Service Works Global. This is the first survey of its kind in Australia. The results are documented in a complimentary white paper* that provides a wider understanding as to how facilities management software is used in Australia, what are considered the key benefits, and the relevant industry trends. The use of facilities management software in Australia is still in its infancy. Just over half of the survey respondents purchased their system less than five years ago, and for many (41 per cent) it was the first such software application their organisation had ever purchased. The majority of respondents use a facilities management software tool to manage assets, and planned and reactive maintenance. Their choice of software was largely based on its functionality, flexibility and ease of use. The software is usually hosted in-house. The top three systems used by respondents are Maximo from IBM, QFM from Service Works Global, and WSMenterprise from FM Innovations. This contrasts strongly with the perceived top three brands, which respondents considered to be Maximo, BEIMS and Mex. Facilities management is now one of the fastest-growing and most strategically important parts of an organisation’s operational structure. To reflect this development, there has been a corresponding consolidation in the types of software supporting the delivery of facilities management services. Almost all facilities management software applications assist in the monitoring, management and planning of operational activities and expenditure, standards, regulatory compliance and capital budgeting, in one or several of the following areas: 33 management of user requests (including helpdesks) 33 planned and reactive asset management and maintenance, property administration and space management 33 resource management (such as meeting room bookings, travel bookings, visitor bookings, accommodation bookings and car parking allocation) 33 monitoring, management and reporting of environmental performance.
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Facilities management is now one of the fastest growing and most strategically important parts of an organisation’s operational structure Respondents and budgets Almost three-quarters (72 per cent) of respondents are ‘inhouse’ facilities managers – that is, they are employed directly by their organisation – compared to 17 per cent who are facilities management ‘service providers’. Twenty-two per cent of the total respondents are currently, or have been, involved in public-private partnership contracts. Over one-third of respondents are in organisations with between 51 and 500 employees, with 21 per cent in organisations with more than 5000 staff. Organisations below 51 employees accounted for just 11 per cent of the survey base. Two-thirds of respondents are in organisations managing up to 50 sites, and a further 16 per cent manage between 51 and 100 sites. Just 14 per cent are responsible for a single facility. Over 70 per cent of respondents are responsible for premises with a net lettable area of between 1501 and 150,000 square metres. Just two per cent are responsible for less space, and 27 per cent manage more. Just over one-third of respondents have facilities management budgets between A$1 million and A$10 million. Another third have budgets of over A$10 million, with 14 per cent more than A$50 million. Responsibility for the facilities management budget sits overwhelmingly (almost 80 per cent) with the facilities management individual/team/department. In nine per cent of cases, it rests with ‘other operational staff’. Finance staff have responsibility in just seven per cent of cases, property staff in 5.5 per cent
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technology and innovation
of cases, and human resources personnel do not figure at all as an owner of the facilities management budget.
FM tools Respondents were asked what type of tool they currently use to help with managing their facilities management function. Just over a third use an ‘off-the-shelf’ software tool, and 30 per cent have made a ‘custom purchase’. One-fifth have developed software inhouse. Thirteen per cent simply use a spreadsheet or similar, with a further 11 per cent stating that they use no software tools at all. Of the respondents not using a software tool, 73 per cent of these are currently reviewing the market. Respondents were asked what they used their facilities management software for. The 14 most cited tasks are shown in the table below.
For what purposes do you use your FM software?
Response Percentage
Planned maintenance
73.0
Reactive maintenance
71.3
Asset management
59.1
Contract management
40.0
Capital projects
34.7
Health and safety
27.8
Of those respondents who knew when their organisation purchased their facilities management software, 63 per cent purchased their facilities management software within the last five years Hosting and providers
Property/estates management
23.4
Resource management
21.7
Energy management
15.6
Space management/planning
1.7
Payment mechanism (for PPP contracts)
13.0
Mobile workforce management
12.1
Stocks/spares management
10.4
Room bookings (or other bookings)
9.5
Of the 85.7 per cent of respondents who have implemented facilities management software, the majority (58 per cent of relevant responses) hosted their system internally. One-fifth used managed hosting (software as a service (SaaS) or the cloud) and a further fifth used a combination of the two. Of those respondents who have a facilities management software application, 11 per cent of respondents preferred not to name their solution, but the breakdown for those who did is: Maximo (from IBM) 18% QFM (from Service Works Global) 15% WSMenterprise (from FM Innovations) 13% Archibus (from Integrated Facility Management) 10% Mex (from MEX) 10% BEIMS (from Mercury Computer Systems) 5% PRONTO-Xi (from PRONTO Software) 5% Coordimax (from Coordimax) 3% Loc8 (from Loc8) 2% Mainpac (from Mainpac) 2%
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33 ‘I understand the FM software had been chosen for
Respondents also cited that their chosen system is web-based, that it can be configured internally, and that it offers integration
One-third of respondents could not recall how they had found their software provider. Of those who could, onethird used a tender process and another third came from recommendations. Conference or trade show, advertising and web search each accounted for approximately 10 per cent.
Purchase, implementation and linked systems Of those respondents who knew when their organisation purchased their facilities management software, 63 per cent purchased their facilities management software within the last five years, 36 per cent purchased it more than five years ago, and 53 per cent stated that the current application is the first their organisation had purchased. For those who knew how long it took to implement their system, 59 per cent of respondents said it took under 12 months to implement their system, 38 per cent under six months, and 25 per cent more than a year. Increasingly, facilities management software is linked to other systems within organisations: over two-thirds of respondents said their software linked to finance, 32 per cent linked to health and safety, and over one-quarter to a building management system. Interestingly, 12 per cent said they linked to a building information modelling (BIM) system – possibly the sign of a trend.
Benefits Respondents were asked: ‘What is the main reason you chose your FM software solution?’ Functionality, flexibility and ease of use were all mentioned repeatedly. Respondents also said that their chosen system is web-based, that it can be configured internally, and that it offers integration. A number of respondents (particularly operating in the PPP market) identified the availability of an integrated payment mechanism as a key factor in their choice of system. Responses included: 33 ‘Tracking maintenance and repairs on assets.’ 33 ‘Able to refine the system in-house.’ 33 ‘Asset management and reporting capability.’ 33 ‘The backup and support. Starting with base software then adding modules. Integration with other software including financial systems.’ 33 ‘Provides conformity with other sites within the organisation, such as benchmarking opportunities.’
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not only the CMMS capability, but also the Paymec package, which is part of the PPP requirements.’ 33 ‘Excel far too basic; FASB rules emerging.’ 33 ‘Off-the-shelf, web-based and ease-of-use software with ongoing support provided by people skilled in both software and facility maintenance management.’ 33 ‘Integration of leasing and owned property management with maintenance management.’ Respondents said their systems had made their facilities management service more efficient (82 per cent ‘very true’ or ‘somewhat true’); provided a better quality of data (73 per cent), and allowed for better auditability (78 per cent). The picture is more mixed for other benefits. Although 49 per cent said their FM system has allowed them to better identify staff workload, 38 per cent were neutral on this benefit. Just seven per cent said it was ‘very true’ that their software has enabled them to reduce their facilities management budget, and a fifth said this was ‘somewhat true’. However, 30 per cent disagreed.
Asked whether software had improved their sustainability credentials, views were again mixed. Half were neutral, but one-fifth said this was ‘somewhat true’, and 10 per cent ‘very true’. Just under one-fifth (19 per cent) disagreed with the statement Fifty-three per cent of respondents agreed that their software had enabled their organisation to save money, with 42 per cent neutral on this benefit. Forty-three per cent were confident that their facilities management software is flexible and adapts as their organisation changes. Asked whether software had improved their sustainability credentials, views were again mixed. Half were neutral, but onefifth said this was ‘somewhat true’, and 10 per cent ‘very true’. Just under one-fifth (19 per cent) disagreed with the statement.
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Other points to note In summary, just under half of respondents (47 per cent) agree that their facilities management software gives them all the benefits that they thought it would, with just over one-third (34 per cent) neutral on this question, and 18 per cent disagreeing.
Conclusion Dedicated facilities management software is clearly providing Australian organisations with significant benefits, particularly in helping them to make their facilities management service more efficient, with access to better data. However, software providers need to work closely with clients to ensure they derive maximum benefit from their systems, and to reduce implementation time. Responses suggest that facilities management software is likely to become more integrated with other business planning and management tools. It will also become an important input to, and user of, data from building information modelling.
Although most respondents use a specialist facilities management software tool, with one-third purchasing off-the-shelf software, a sizeable minority (14 per cent) simply use a spreadsheet. Finding time to implement software may be an issue in a world of plug and play. Although around 25 per cent of systems took less than four months to implement, a similar percentage required over a year. The question about linking facilities management software to other systems may have picked up the first signs of a trend to link systems with building information modelling (BIM), with just under 12 per cent of respondents claiming to do this. Although respondents are clearly deriving benefits from implementing facilities management software, it’s apparent they are not reaping all the benefits they could. Just under half of respondents (47 per cent) agreed that their software ‘gives me all the benefits I thought it would’.
* To receive a complimentary copy of the White Paper, which highlights the results and identifies industry trends, please email your name, email address and contact details to info@swg.com or policy@fma.com.au
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security
Be safe, not sorry BY PAT BOURKE, SOUTHERN CROSS PROTECTION MD
A recent research report from the Australian Chamber of Commerce and Industry (ACCI) has exposed the vulnerability of Australian small businesses and franchisees to security threats, theft and vandalism because they are failing to seek advice from security professionals on securing their premises.
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mall business owners have long been at the sharp end of the stick when it comes to protecting their precious physical assets from theft, vandalism and other security breaches. While large corporations plough millions into complex and highly technical security solutions implemented by vast teams of service providers, small businesses and franchisees often lose out. Cash is in short supply and security has traditionally been seen as an area where small business owners are prepared to cut corners, and go it alone. The Security Confidence Index, a study of small business owners and franchisees carried out by ACCI in partnership with security services provider Southern Cross Protection in late 2012, has confirmed this worrying trend. Small businesses and franchisees are demanding more and more value from their security solutions. Looking to the future, the rollout of the National Broadband Network (NBN) could offer many the chance to control security through remote monitoring of CCTV and alarms; however, small and medium enterprises (SMEs) and franchisees still need advice on what to implement and how, so as to get the best results. It’s never been more vital for franchisees and small business owners to work with a security services professional.
Aussie SMEs shun professional advice on security Results from the survey indicate that only a tiny percentage of SMEs (less than five per cent) are seeking professional advice when putting measures in place to protect their physical assets. In fact, the majority are making critical security-related decisions based on assumptions and past experiences, with nine per cent of respondents indicating they simply guessed when it came to deciding on the best security options for their business. Small business owners and franchisees are far from stupid. While they are definitely conscious of the need to invest in security, the survey highlights that there is a significant disconnect because they
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are either unaware of the security risks they face, or unsure of appropriate and cost-effective solutions available for their businesses, as they are not seeking professional advice. So what should small business owners and franchisees do to ensure they are seeking sound, trustworthy advice from the right security service provider to reduce risk – and getting value? 1. Act now: Private security is an area of spending where it is hard to know what to do; what is enough and what is too much? No one wants to jeopardise the wellbeing of their customers and staff, and you simply have to protect your business assets and ensure continuity of operations. Physical security is actually an important cornerstone of the overall risk management toolkit and is all too often neglected – but acting now will save you money in the long term. 2. Think integrated: As the Security Confidence Index revealed, many companies don’t know a lot about security. Our typical customer has bought a CCTV system that no one knows how to use from a hard-pressure sales organisation, has patrol guards visiting at the wrong time of day, and has no visible deterrence systems. None of these components are working together, and therefore the risk profile isn’t actually reduced. So look for a provider that can integrate all the divergent areas of expertise to provide a customised solution that actually reduces risk and is independent. This will lessen your spend and make it more effective. 3. Set clear goals: Many franchisees have had bad experiences with security consultants in the past. It is important to set a clear goal up front, agree upon parameters and timeframes and understand exactly what you are, and are not, paying for. The best security providers are in it for the long haul – security should never be a short-term sale.
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security
Less than five per cent (3.7 per cent) of respondents said they would consult a security sales expert before choosing which security solution is right for their business. An alarming nine per cent of respondents admitted to simply guessing when it came to deciding on the best security option for their business. This is highly concerning. Without a thorough and accurate security assessment, businesses are exposed and at high risk of theft of physical assets, intellectual property, and damage to physical property and vandalism.
4. Look for experience: Security services vary between industry sectors, so pick a provider that can show proven experience in working alongside clients with similar needs to your own. That way, they can share best practice with you, and you can be sure you’ll have your unique requirements met. 5. Spend wisely: The most expensive option is not always the best, and risks must be balanced against likelihoods and costs. Ask a security solutions provider to ‘do the maths’ for you and prove their case – being able to demonstrate the real value your business will see in investing in their security solutions, and offering you the most cost-effective product that is flexible, scalable, selfsufficient, and can change as your business changes, is crucial.
ABOUT THE 2012 SECURITY CONFIDENCE INDEX The 2012 Security Confidence Index builds on 2011’s findings to explore the steps SMEs are taking to protect themselves, and is designed to assist the security industry to improve its services to small-to-medium business owners. Conducted as part of the quarterly ACCI Survey of Investor Confidence, undertaken through the ACCI’s member associations, the survey covers the three months to September 2012, and had 145 respondents. ABOUT SOUTHERN CROSS PROTECTION Protecting Australians since its inception in the 1930s, Southern Cross Protection is Australia’s largest national security patrol network. With a deep commitment to providing adequate and affordable levels of security provision to SMEs in Australia, Southern Cross will continue to offer intelligent and comprehensive security solutions to hundreds of businesses and communities, while at the same time working closely with government, business chambers and the wider industry to improve education, awareness and security provision for SMEs. With a countrywide reach, Southern Cross Protection is Australian-owned and managed. www.sxprotection.com.au ABOUT ACCI ACCI is Australia’s largest and most representative business association. It is the peak council of Australia’s state and territory Chambers of Commerce and major national industry associations, and is an authoritative national voice for Australian business of all sizes, in each industry, globally, nationally and regionally. www.acci.asn.au.
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procurement
How to ensure the products you purchase are truly sustainable BY DARRAGH BRENNAN, SOLARIS PAPER
There are many things that need to be considered when deciding which products to stock in a facility. While historically, a product’s price and quality were the two predominant considerations, there is no doubt that the scope of factors that now enter into any purchasing decision has expanded exponentially over the past couple of years.
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nd while many of these factors might previously have been ‘luxury considerations’, smart facilities managers know the critical importance of only stocking products with well-rounded credentials. One consideration that has moved from a mere ‘luxury’ to a vital business consideration is the environmental and social sustainability of the products you stock. Consumers, patrons and users of all facilities are becoming more aware of the need for sustainability in all aspects of a facility, and they are willing to show their displeasure with their feet if any establishment does not live up to their environmental standards. In this way, environmental consciousness has become an important business consideration for all facilities managers. And while the physical facility you manage may achieve the highest levels of environmental sustainability, this may all come to nothing if the products stored within your establishment aren’t equally as eco-conscious. Strong environmental standards need to start being considered as a ‘ticket’ onto the floor of your facility or venue. This is undeniably a positive step – not only for the procurement industry, but also for suppliers of tissue, packaging and paper products. The increased scrutiny means that purchasers need to be more conscious and demanding of the products they buy, and in turn suppliers need to ensure that all of their items live up to the highest possible sustainability principles and standards.
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However, identifying the protections and regimes that best ensure responsible environmental practices can often be confusing, especially if you are not necessarily aware of the various legality and sustainability programs that are currently in place around the world. In this article, I will focus on tissue paper products. Luckily, the recent pushes towards timber legality and sustainable forestry have made it easier for everyone to identify the tissue suppliers that abide by the highest international standards. In the sustainable forestry sector, there are two major ways for facilities managers and tissue purchasers to be assured that products come from responsible sources – namely wood legality regimes and sustainable forestry programs. Both of these have an important role to play in ensuring that the products you stock abide by the highest standards of environmental and social sustainability.
Wood legality regimes The first way to be assured that the tissue products you stock are produced through truly sustainable means is to make sure the wood used, whether in pulp, paper or timber form, has not been sourced illegally. One way in which many nations are ensuring that all tissue and paper products produced through their country are produced
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procurement
responsibly is through the creation of internationally recognised timber legality regimes. Purchasing items that source their pulp through nations with these regimes is the primary way to ensure that the products you stock haven’t been produced through illegally sourced timber. Thankfully, there are a number of countries around the world that currently have strong legality regimes, which ensure that all products sourced or produced in that country abide by stringent international standards. Luckily for Australian facilities managers and procurers, one nation that has enacted a world-leading regime is surprisingly close to home: Indonesia. The recently introduced legality standard, referred to as SVLK and developed in conjunction with the European Union, helps to ensure that all pulp and paper products have been sourced through legal processes and adhere to international standards. These regulations, which cover licensing, harvesting, transporting and processing, are among the strongest in the world, and have been developed to put other nations at ease when importing supplies from Indonesia. Importantly for facilities managers, this means that no illegally sourced pulp will be in any tissue, paper or packaging products from the nation. Ensuring that you are purchasing products that fulfil the requirements of a legality regime such as SVLK is one of the key ways to be assured you are using items that are sourced both legally and responsibly.
Sustainable forestry certification The second major way to be assured that the tissue products you are using are sustainable is to make sure they are certified by one of the two globally recognised forestry schemes – PEFC or FSC. Forestry certifications primarily aim to guarantee that a country has sound management practices in place to support environmentally responsible businesses. While the amount of forest currently certified is more than double what it was only five years ago, less than 10 per cent of the world’s forestry is certified. This is a key reason why it is so important to purchase paper and tissue products that carry a certification logo, as it ensures that the products come from sustainably managed sources. Importantly, these certification standards don’t only examine the methods used to source timber, tissue and paper products; they also monitor the overall health of the forests from which these products are sourced. A key element of certification systems is ensuring that biodiversity within the forest is maintained or enhanced, and that the ecosystems present within the forest are sustained. Some schemes, most notably PEFC, go a step further, assessing the social impact of a company to ensure that the supplier is also acting in a socially sustainable fashion. This includes ensuring that employers are providing competitive pay, safe working conditions and comprehensive benefits to employees. The
This is a key reason why it is so important to purchase paper and tissue products that carry a certification logo, as it ensures that products come from sustainably managed sources attractiveness to facilities managers and purchasers of applying a global standard to facilities that are commonly outside of Australia ensures that all parts within a global supply chain, no matter where in the world, are abiding by standards that all Australian purchasers and consumers would call sustainable. I can say from firsthand experience, having visited the facilities of our suppliers (Asia Pulp and Paper in Indonesia) numerous times, that these measures are not only stringent, but they are the best assurance any purchaser or facility manager can have when looking to purchase environmentally responsible tissue and paper products. Understandably, ensuring that all products you stock and offer tick all of the sustainability boxes is of growing importance to facilities managers across the country. And while the issue has definitely garnered greater attention over the past year, it has also helped purchasers in all venues to better recognise the global programs that provide a legitimate assurance as to the environmental and social sustainability of products. Ensuring that tissue products purchased are from suppliers that abide by these standards is the best way to feel completely assured that the products you are using are sourced and produced responsibly – and in that way, protect your bottom line.
Darragh Brennan is the Australia-New Zealand (ANZ) Sustainability & Communications Manager for Solaris Paper, an Australian-operated and managed affiliate of APP, and is responsible for communicating with stakeholders across the ANZ region on the company’s sustainability initiatives and credentials.
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company profile
The cleanest event on the WA calendar
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elebrating the cleaning industry’s commitment to public hygiene and sustainable practices, - AUSCLEAN WA is much more than simply seminars, workshops and an exhibition. It is a meeting place for the industry – suppliers and distributors; building service contractors; facilities managers, carpet and restoration technicians; and in-house cleaning and hygiene practitioners. At AUSCLEAN WA, facilities managers will have an opportunity to identify ways to lower costs and improve standards. Visitors will also have a unique opportunity to gain advice on how to appoint contract cleaners and monitor performance. An extensive education program will be held over two days with key sessions including: 3 Measurement validation in commercial cleaning – Greg Whiteley 3 Changing with the times – Stefan Nehez 3 3 keys to maximised staff retention, performance and loyalty – Shannon Daniels 3 Green marketing – the opportunities and the risk of getting it wrong – Bridget Gardner 3 New technology for mould inspection and remediation – Kevin White 3 Creating raving fans through outstanding service – Rueben Taylor 3 Reducing operational cost of on-premise laundry equipment – Brian Clark 3 Utilising bio-enzymes in cool room cleaning – Heike Neumeister-Kemp 3 Understanding your risk – are you cleaning in a meth lab? – Charlie Lodge 3 See over 50 exhibiting companies 3 networking and enjoy the free welcome reception on the show floor 3 join the Cleaning Council of WA on their Golf Day – 21 March 2013. AUSCLEAN WA is supported by the Cleaning Council of WA, Australian Cleaning Contractors’ Alliance and the Carpet Cleaning Association of WA.
Interpoint managing director Simon Cooper noted that the organisation of AUSCLEAN WA reflects the ongoing cleaning and hygiene industry investment by The Intermedia Group and its Interpoint associate. ‘We recognise the need to make AUSCLEAN a genuinely national event, and that means holding Australia’s only dedicated cleaning and hygiene show in Perth. ‘The AUSCLEAN team is excited about bringing the event to Western Australia. The real winners will be both supplier exhibitors and the end-user buyers,’ Cooper emphasised.
For more details, to register or to see the complete education program visit www.auscleanwa.com.au or call 1300 789 845
Western Australia’s Only Dedicated Cleaning and Hygiene Event
19-20 March 2013, Fremantle, Western Australia www.auscleanwa.com.au
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REGISTER
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Australia’s Only Dedicated Cleaning & Hygiene Event “We are excited once again to be the platinum sponsor for AUSCLEAN Pulire 2013. After a successful sponsorship of AUSCLEAN 2011, the partnering of Pulire with AUSCLEAN made this decision an easy one. We look forward to a great partnership and an even greater AUSCLEAN Pulire 2013.” Frank Cupido, Managing Director, Hako Australia
AUSCLEAN and Pulire’s strategic alliance... a long term investment that brings great benefits to our industry More than 80 exhibitors & 2 days of education
15 - 16 October 2013 Grand Pavilion, Rosehill, Sydney, Australia www.auscleanexpo.com.au Platinum Sponsor
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Supported By
Media Partners
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education & training
Cost savings for efficient education facilities NAOMI NIELSEN, HEAD OF LEASE ADMINISTRATION AUSTRALASIA, JONES LANG LASALLE
UNSW, Sydney
Australian universities have undergone a rapid transformation in recent years. Change has been brought about by a different demand dynamic, globalisation and federal government reform – all of which impact upon the management of the infrastructure and facilities of tertiary institutions. One of the most significant government reforms was the introduction of a demand-driven funding model in 2012. It has forced a major structural change in the sector, with tertiary institutions now more vigilant than ever about creating efficiencies and cost control. In this article, we examine a number of strategic approaches, as well as quick wins for facilities managers in the tertiary education sector to achieve cost savings in an increasingly competitive environment. Maintenance and operations Maintenance program
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aving a proactive approach to maintenance programs within tertiary institutions will not only maximise building and equipment operability and efficiency, but will also minimise required maintenance time, materials and, ultimately, cost. Up front, institutions should conduct a facilities audit to ensure their maintenance plan is aligned with the condition of the asset, as well as undertaking a risk assessment to establish what the maintenance priorities should be. Existing maintenance regimes should be reviewed against compliance requirements to make sure facilities aren’t being over-serviced. The audit process will allow facilities management teams to identify infrastructure deficiencies and anticipate future needs, as well as informing the strategic planning process and budget forecast. Strategic outsourcing arrangements, including grouping campus asset types and outsourcing a specific asset stream, such as fixed plant and equipment, can provide not only cost savings, but
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also improved service quality, plant reliability, improved plant and equipment life, and can limit over-servicing and offer much greater access to asset data information. Outsourcing preventative maintenance can also lock in a fixed price for a defined period, which both protects an institution’s funding, and manages their costs.
Facilities services Cleaning costs, on average, have increased from $13.50 per square metre to $16 per square metre over the past five years. Having a robust process of defining cleaning requirements between semester periods versus non-semester periods, and annual cleaning requirements versus discretionary cleaning requirements, can result in significant cost savings. This will assist an institution to better manage and control cleaning costs across the campus, and achieve a better scope of works and competitive pricing via the contractor. Allocating specialised cleaning requirements and charging these to business units can also yield considerable savings to the facilities management cleaning budget.
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Security costs have increased by an average of $7.50 per square metre to $9 per square metre over five years. There is opportunity for savings through investment in security infrastructure, such as the introduction of proximity cards and readers, which reduce labour and unnecessary re-keying costs. Greater investment in technology such as CCTV and swipe-card access will also provide a more cost-effective and less invasive security solution.
Capital works A platform that encourages linkages from asset creation and asset maintenance Any institution investing significantly in capital works across any year needs to ensure that there is a structure in place to achieve seamless end-to-end property delivery across the portfolio, including remote campuses. The project delivery team needs to work closely with asset management and facilities management teams to allow a smooth transition across any project’s stage, especially where sustainability initiatives are critical to achieving the project’s brief. This model can promote greater operational efficiency and reduce project delivery risk by eliminating redundant activities, excessive oversight and gaps that may occur when managing multiple activities within the real estate asset life cycle.
Procurement strategies linked to design standards Property teams should look to develop and implement a crossproject, bulk procurement strategy that will take advantage of the similarities between faculties and the related projects. Design standardisation will result in savings in design consultancy costs as a set of standard design specifications are developed that define materials to be used on all projects. Further design consultancy savings may be achieved should the institution elect to use modularisation in designs where a generic spatial element, such as kitchens, bathrooms, small office spaces and workstation areas, can be designed and then modified to fit individual project requirements. Significant cost savings can be achieved through the bulk procurement of materials for similar projects, with suppliers willing to provide lower rates if they are guaranteed to be the preferred supplier over a set period of time. Programs may be more easily managed and lead times reduced if suppliers are given accurate ‘look-aheads’ that enable them to plan fabrication schedules ahead of time. Significant management costs and program savings may be achieved with the reduced need to tender for multiple types of materials from multiple suppliers for multiple projects.
solution. It will result in a total asset management approach that identifies opportunities to increase space utilisation and minimise capital funding, as well as reducing operating costs.
Maximising the use of teaching and learning spaces The first step is to undertake a space utilisation audit of teaching and learning spaces. The timing of the survey should be around a week after the last census or cut-off for enrolments in semester one. The audit should be carried out across lecture halls and tutorial spaces, focusing on the number of participants versus the number of seats in each location. It will enable the facilities team to reallocate teaching and learning spaces based on student intake, resulting in greater efficiency. It also informs the servicing frequency required for cleaning and access for maintenance, which ensures the efficient utilisation of resources, thus driving cost savings. The wireless dynamic generates considerable efficiencies, increases space utilisation and creates greater access to higherquality, well served and dynamic learning environments, as well as savings on fit-out costs. It also informs the space planning and programming of capital works for the commissioning and decommissioning of teaching and learning environments.
Maximising the use of administration and academic areas Space management should extend to academic and administrative areas, and testing new space models such as open-plan environments and even activity-based working in appropriate faculties and business units. Data in the private sector shows that office space across all industries at any given time has a vacancy rate of between 30 and 40 per cent. This represents a significant opportunity to reduce the cost of real estate.
Space planning and utilisation A fundamental management requirement for a facilities management team is to understand how the university utilises space. Leadingedge universities have a space management unit that engages with faculties and business units to understand their changing requirements. The space management effort should be interfaced with the minor and capital works program, and is influenced by the university’s master plan. A sophisticated space inventory technology platform will allow for accurate space planning and modelling, as well as ensuring decisions are made to achieve the most cost-efficient
UNSW, Sydney
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Sustainability Unlike the majority of commercial assets, tertiary education facilities have inherent multiple-use patterns as an integral part of their day-today operations. As a result, when focusing on cost control, institutions require far greater flexibility of systems and processes to minimise energy use and other costs. There are four key considerations from a sustainability perspective: 1. Space type, use and associated services need to be carefully aligned to achieve the required conditions (lighting, HVAC and other) based on demand patterns, not just set to standard operating times. 2. Space planning and use needs to be carefully and accurately scheduled to drive greater efficiency within faculties and their use of space and ancillary services. 3. Integral feedback loops need to be provided to faculties as well as to end users (students and academics) so that accurate cost and footprint impact is understood, and there is a whole-of-institution approach to reduce emissions per student as well as reduce cost. A university’s student population provides a unique resource to achieve competitive sustainability outcomes. There is no harm in making usage transparent between faculties and encouraging a bit of friendly competition to reduce their footprint. 4. From a capital works planning perspective, there is a sustainability benefit around understanding the portfolio and being able to best leverage the existing structure and envelope, and understanding which buildings can be effectively relifted and re-used applying solar energy, natural light, thermal insulation, photovoltaics, thermal mass and natural ventilation. There are many opportunities for institutions to both improve their carbon footprints and reduce operating costs through sustainability initiatives. Green purchasing, waste reduction, recycling, energy efficiency and workplace ecology are all fertile ground within a university campus. Being recognised as a leader in sustainability within their facilities can help an institution secure increased funding from government and other private sector sources. Focusing on energy management, the first step is to have a clear picture of facility usage hours, considering weekday versus weekend, term versus semester break, and scheduled versus after-hours, and this needs to be tabulated for every building, floor and discrete area. A user-pays model for energy consumption is widespread neither within tertiary institutions, nor in the private sector. Having a reward or penalty for faculties that are either creating efficiencies or that are wasteful can help to change behaviour. Sub-metering is the answer to ensuring transparency, and some leading thinkers are offering users a share of savings to those most efficient.
Strong procurement category planning and knowledge is essential to achieving the best value for money outcomes. Considering the cleaning category as an example, in-depth knowledge of the supply market, key cost drivers that correlate to service outcome, the regulatory environment, sustainability opportunities and effective service specifications will ensure a successful and efficient contract.
Author Naomi Nielson heads Jones Lang LaSalle’s Education sector business. Naomi has more than 22 years of real estate experience in Australia, having worked with many tertiary institutions in an advisory capacity, including The University of Sydney, RMIT, The University of NSW, The University of Western Sydney, Murdoch University and The University of Canberra. She also held the role of Deputy Director – Facilities Management Services, The University of New England.
Procurement Strategic procurement principles will improve operating cost and reduce risk, as well as add value to an institution. Having a robust scope of works and comprehensive supplier on-boarding and engagement programs will ensure the best outcome as well as the most competitive pricing. Going out to the market for procurement support will increase the leverage of an institution, tapping into a supplier’s significant buying power and learnings across other institutions or industries.
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RMIT’s Swanston Academic Building
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company profile
company profile
Retrofit and BAXI condensing technology advantages
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ver the last 20 years, Baxi has invested heavily in the technology of developing products with low- and zerocarbon emissions. Condensing technology is one example that has greatly improved the operating efficiency of commercial NG/LPG boilers and water heaters. It is one of the cleanest technologies using any of the fossil fuels as a source for delivering energy. Hospitals, nursing homes and offices that require a continual annual heat load will benefit the most in reducing operating costs by changing over to this advanced technology without upsetting the current gas and water connections. An annual saving in running costs with condensing boilers of 30 per cent can be expected.
One or a number of boilers can be prioritised to produce hot water to satisfy the storage demand, minimising capital expenditure. This installation adaptability demonstrates the flexibility of a Baxi heating system. Another advantage of a modular system is that the single modules can be transported via lifts and stairs – no expensive crane lifts on a Sunday morning are required! Hydroheat Supplies in Melbourne is the Australian distributor of the Baxi condensing boiler range and holds an AGA approval and watermark where applicable for all models designed for the Australian market.
The Baxi way Several individual boiler modules (cascade installation) can be connected and configured to suit fan coils, radiator panels, floor heating/cooling, heat exchangers and calorifiers/storage tanks or any combination of these.
For all queries visit our website www.hydroheat.com.au Jan Voorham, Hydroheat Supplies P/L
RETROFIT + BAXI
Reliable, Versatile, Innovative Working Towards A Greener Future
www.hydroheat.com.au ACT distributor Idealair Group (02) 6280 5511
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NSW distributors Simons Boiler Co. (02) 8338 8660 EcoHvac Products (02) 9669 4500
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QLD distributor EcoHvac Products (07) 3808 9400
WA distributor A-West Distributors (08) 9258 5670
AGA approval #6253 & 7023
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company profile
City Care opens the door to New Zealand
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ity Care’s head of Facilities Management is an ardent advocate of FM in New Zealand and is always willing to share his opinions on industry issues. He also knows a thing or two about Australia, because he was born and raised there. Peter Lord believes there is value in any Australian company eyeing market entry into New Zealand partnering with a Kiwi-based organisation with an established national footprint, a large workforce of skilled people, and vast experience in complying with a huge and ever-changing slew of central and regional regulations. ‘Those attributes describe City Care to a T,’ says Lord. ‘And with a growing number of companies owning properties in Australia and New Zealand, forming a partnership to deliver FM services across both countries makes sense.’ City Care’s smart technology platforms integrate seamlessly with clients’ systems and allow real-time data capture, transfer and reporting of job status and asset information, independent of their geographical location. On gaining his engineering degree from the University of New South Wales, Lord worked in environmental services in Australia,
Europe and New Zealand before joining City Care in Christchurch in 2002. A promotion to head the company’s FM and Construction division in 2006 brought his first introduction to facilities management. ‘I was struck by the significant opportunity this emerging discipline afforded City Care in New Zealand, so immediately moved to reconfigure the business to Connect with Peter Lord: better service public and nz.linkedin.com/in/lordpeter private sector clients. We now count the majority of New Zealand’s local government authorities and a growing number of high-profile companies among our major clients.’ A further restructure in 2012 saw City Care delineate its FM functions into the two distinct service offerings of facilities management and property maintenance, with both streams supported by an in-house 24-hour customer service centre. ‘We’re ideally placed to cater to the unique needs of each individual client,’ Lord says. ‘Our quality-assured trade services are on call 24/7 for those clients who simply need a reliable contractor for responsive maintenance, while we also provide an integrated FM service for clients who benefit from a more comprehensive solution tailored to suit their specific business requirements.’ City Care is also positioned to meet the needs of those clients looking for an FM partner to support their long-term strategic objectives. Major client Z Energy is a case in point. Z’s Asset Manager, Gail Calder, says: ‘City Care has provided us with the asset knowledge and management outputs that allow us to understand our funding requirements to maintain our property assets over the next 30 years for varying levels of service. This is of major strategic benefit to our organisation.’ Not content with establishing City Care as an FM power in New Zealand, Peter Lord is also one of the discipline’s deep thinkers with a particular interest in changing the way FM services are procured in New Zealand. He was a driving force behind – and a founding member of – FMANZ, and still serves on the board, where he continues to shape the direction of FM as a profession in New Zealand.
City Care is a major provider of construction, maintenance and management services across New Zealand’s infrastructure and amenity assets.
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With City Care as your partner you have nz Covered City Care is a leading New Zealand facilities management provider with plenty to offer potential Australian partners. City CAre offers: Broad spectrum facilities services – everything from qualified trade services to strategic asset management Extensive market knowledge and expertise in servicing local clients Over 1200 field staff employed across New Zealand in multiple trades
Increased buying power and preferential supplier arrangements through our large size and extensive reach New Zealand based, 24 hour customer service centre Our accredited supply chain ensures compliance and mitigates risk
To talk over a facilities management solution that works for you, contact Peter Lord on
+64 3 941 6053 or email peter.lord@citycare.co.nz
Our web-based real-time job management systems ensure access to information anytime, anywhere
Facilities Management Maintenance Construction
www.citycare.co.nz
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New Zealand
Concern surrounding employment relations in New Zealand facilities management BY PATRICK LEE LO, PRESIDENT, BUILDING SERVICES CONTRACTORS NEW ZEALAND (BSC) The most pressing issue currently facing New Zealand’s building services sector concerns Part 6A of the Employment Relations Act. Part 6A was originally intended to protect groups of low-paid workers from being replaced by cheaper contractors, or having their pay and conditions reduced for the same job when a contract is retendered or a company changes hands.
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roblems with the legislation, particularly around the requirement to transfer all terms and conditions, led to considerable confusion in the industry, and BSC had been lobbying for a review of the law for several years. However, when proposed changes to the legislation were announced by the New Zealand Government in October, they were met with widespread concern, and BSC, together with other organisations, is urging Cabinet to revisit this decision as soon as possible. While the amendments address some of the major problems created by the law, they needed to go further, and some of the changes make the law even more confusing. Of particular concern is the plan to exempt small and medium businesses – those with fewer than 20 employees – from the provisions of Part 6A when they take over a contract. There is concern that this will create a loophole for some contractors or franchise cleaning companies and that, potentially, franchisors could state that a franchise owner is an independent operator and, if an operator or site has fewer than 20 employees, they could be exempt from the law.
New Zealand has some very good franchised cleaning companies – but that isn’t the case for all
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That could mean that a franchise operator could win a building services contract and parcel that out to several franchisees. If it is a major contract employing 30 staff, none of the new franchisees/employers would have any obligation to those staff. This could simply play into irresponsible operators’ hands, and will make cleaning staff even more vulnerable – which works against what the legislation was designed to do. I understand this sort of practice has been banned by the Australian Fair Work Ombudsman (FWO). Another concern is that, through a collective bargaining process with the SFWU over more than a decade, the BSC has been able to establish and generally maintain some margin between the lowest wage paid to the vast majority of cleaners in New Zealand and the adult minimum wage. There can be little doubt that such a margin would be seriously eroded if SMEs were not bound by Part 6A. The issue of Part 6A also brings me to another problematic area for the industry concerning the behaviour of some franchised cleaning companies. While Australia regulates its franchise industry – and there has been debate about whether even stricter regulations should apply – New Zealand does not. Back in 2008, the previous Labour Government did carry out a review of the laws governing franchising following concerns about a substantial fraud carried out by a former Green Acres master franchisee who later received a prison sentence. However, in 2009, the current National Government announced that the existing law was adequate to deal with any problems that existed in the franchise sector.
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New Zealand
The BSC’s experience tells a different story. While rather less dramatic than fraud, there is a considerable human cost in the way some cleaning franchises operate in New Zealand. New Zealand has some very good franchised cleaning companies – but that isn’t the case for all, and we are often approached for help with issues associated with the less responsible ones. As none of these have related to our members, we have not been in a position to help; however, we are concerned about how this behaviour may reflect on the reputation of the New Zealand building services industry as a whole. For instance, one of the issues that has been brought to us on a number of occasions is related to new franchisees struggling to make money on a contract because of the charges – potentially up to 45 per cent of the contract value – that have been levied by the franchisor in the first year of the contract. The franchisee may end up cutting corners in terms of the service they offer in order to save on costs – and perhaps end up paying staff ‘under the table’. The Australian FWO investigation into payment of cleaning staff working for a company cleaning Sydney’s Westfield shopping complex has highlighted how such illegal payments can and do happen. Ultimately, when corners are cut, the client gets a significantly inferior level of service to the one they have paid for and expect to receive. Franchisors do have the option of voluntarily joining the Franchise Association of New Zealand (FANZ), which has rules, a code of practice and a code of ethics around franchising. However, while FANZ has 204 members (at the time of writing), the Franchising New Zealand 2012 report, carried out by Massey University, found there were 446 franchisors operating in New Zealand. That’s an awful lot who aren’t reined in by the expectations of an industry body – especially given that there are about 22,400 franchisee businesses operating in the country, employing 101,800 people. The behaviour of some franchises towards employees has also given rise to concern, including around interpretation of the Part 6A legislation and transfer of employees when a contract changes hands. Some employees with grievances have been able to seek redress via the Employment Relations Authority or the Employment Court. One New Zealand commercial cleaning franchise was ordered to reimburse wages and pay damages – totalling nearly $20,000 – to three former employees in two cases brought against the company during 2012. Ironically, lack of regulation may be precisely what is holding Kiwi franchisors back when it comes to expanding overseas. The Franchising New Zealand report also found that the number of franchisors currently franchising overseas – around 23 per cent – had not changed since 2010.
Ironically, lack of regulation may be precisely what is holding Kiwi franchisors back when it comes to expanding overseas. Gehan Gunasekara, an associate professor in commercial law at Auckland University, argued in a recent article in the New Zealand Herald that the lack of regulation and accountability in New Zealand means that many franchises do not develop the very good systems required to also roll out overseas. There seem to be several good reasons for the government to revisit the idea of regulating the franchising industry in some way, both for the benefit of potentially vulnerable franchisees and employees – not discriminating against responsible cleaning companies on the basis of the number of people they employ – and for the economic benefits it could bring to New Zealand. Property and facilities managers need to be aware of these issues, as they can have a significant impact on the buildings they own and manage. The BSC is happy to meet with any property or facilities management company that would like further information on how this could affect them and their tenants, clients and staff. In fact, the BSC is approaching corporate clients directly, offering to hold seminars for the procurement teams to assist them in understanding exactly what the issues surrounding Part 6A are, and how they could affect their business. In my experience, those property industry professionals who have a sincere commitment to being good corporate citizens are interested in ensuring that all contractors, including cleaners, are being treated as fairly and humanely as their own direct employees. The fact that the BSC and Property Council are signatories (along with other industry stakeholders) to the ‘Principles for the Sustainability of the NZ Property Services Industry’ is testimony to this commitment.
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The summit for New Zealand’s FM industry Following the tremendous success of the inaugural New Zealand FM Summit in 2012, we are pleased to announce the New Zealand FM Summit 2013 to be held on 14-15 May at Eden Park, Auckland.
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his is New Zealand’s premier facilities management event, providing first-class networking and learning opportunities. Leading international and local speakers will address topical facilities management issues in the fast-emerging New Zealand FM market. Numerous trade exhibitors will also be showcasing their expertise and systems, providing you with the latest products, technology and solutions. Last year’s Summit attracted over 400 attendees. The New Zealand FM Summit 2013 aims to provide answers and solutions to the real challenges facilities managers face in today’s business environment, both on a daily operational basis and at strategic levels.’ The conference venue is Eden Park – an iconic facility in the New Zealand public mind. The venue can be readily accessed by road (just a few minutes’ drive from Auckland’s CBD, with plentiful free parking on-site) or by rail. The Summit opens on 14 May with a one-day workshop, which will offer great opportunities for learning and professional development. The workshop will be followed by a gala dinner at the Pullman Hotel, located in Auckland’s CBD. Last year’s inaugural gala dinner had nearly 250 people in attendance, and provided a fantastic opportunity to network with other FM professionals who face the same challenges as you. In addition to the Gala Dinner, there will be an Opening Night Reception, free to attendees, to be held on 13 May at the Floating Pavilion, located in Auckland’s CBD. At the close of the conference, we will have a wine tasting provided by Villa Maria Estate, New Zealand’s most awarded winery, followed by post-conference drinks at Eden Park.
The New Zealand FM Summit 2013 – your window to the facilities management world. NEW ZEALAND FM SUMMIT 2013 PRICING INFORMATION 3
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13 MAY – WELCOMING RECEPTION Free to Summit attendees Non-Attendee Member $50.00 Non-Attendee Non-Member $75.00 14 MAY – SUMMIT WORKSHOP Early Bird Member $410 Standard Member $510 Early Bird Non-Member $520 Standard Non-Member $620 14 MAY – GALA DINNER Early Bird Single $95 Early Bird Table for 10 $865 Standard Ticket $130 Standard Table for 10 $1185 Non-Attendee Ticket $150 15 MAY – SUMMIT CONFERENCE Early Bird Member $380 Standard Member $480 Early Bird Non-Member $490 Standard Non-Member $590 FMANZ EARLY BIRD MEMBER BUNDLE PACKAGE Summit Workshop, Gala Dinner and Summit Workshop $795
The full conference program can be found at www.fmanz.org/summit.html.
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New Zealand FM Summit 2013 14-15 May, Eden Park, Auckland
Your Ultimate Source of Industry News The New Zealand FM Summit your window to the facilities management world.
WORKSHOP The Summit opens on 14 May at Eden Park , Auck land, with - day training Workshop a onewhich will provide great opportunities for learning and professional development.
CONFERENCE The Summit continues on 15 May with a Conference at which leading international and local speakers will be addressing topical issues in the fastemerging FM market.
NETWORKING With nearly 400 attendees and an array of international speakers, our Events p rovi de yo u with an opportunity to connect with FM professionals across the globe.
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DON’T SLIP UP WHEN IT COMES TO DON’T SLIPCOMPLIANCE UP WHEN IT COMES TO NCC - BCA NCC - BCA COMPLIANCE
ARCHITECTURAL FLOOR TACTILES, STAIR TREADS & EDGING SOLUTIONS DTAC® pioneered architectural tactile ground surface indicators STAIR in Australia and continue& to EDGING deliver the most aesthetic ARCHITECTURAL FLOOR TACTILES, TREADS SOLUTIONS NCC - BCA compliant solutions available. DTAC® works closely with architects, designers and facility managers to exceed DTAC® pioneered architectural tactile ground surface in Australia and continue to deliver the mostmost aesthetic form and function expectations on every project. Visitindicators dtac.com.au and view DTAC® installations in Australia’s NCC -beautiful BCA compliant solutions and iconic projects.available. DTAC® works closely with architects, designers and facility managers to exceed
form and function expectations on raven.com.au every project. Visit dtac.com.au and view DTAC® installations in© DTAC Australia’s most DTAC® is a member of the Raven Group PTY LTD 2012 beautiful and iconic projects. DTAC® is a member of the Raven Group raven.com.au
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