SOLUTIONS issue 33
think
beyond
the building also in this issue: Transforming Longbridge UK SMART Working at GSK Philadelphia Kuwait invests in project management training Energy-efficient building commissioning in China
CONTENTS 4
Gateway to Growth Supporting our European client base
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Transformation: GSK at the Philadelphia Navy Yard Creating a collaborative workspace
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Think Beyond the Building BIM concerns more than just buildings… and more than information
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Kuwait’s Women Project Managers Kuwait’s government invests in training and professional development
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Rail Cost Modelling Providing transparent and accurate costs for rail schemes
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Transforming Longbridge From the home of UK motoring innovation to a vibrant new community
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Energy Industries Respond to Stronger Safety Standards ieAssurance supports API compliance
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King Abdulaziz International Airport Landmark development for Saudi Arabia’s strategic growth plans
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Sharpening the Focus on Facilities Management Outsourcing Do outsourcing outcomes live up to promises?
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China Building commissioning brings energy efficiency
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Expert Determination Faster cost-effective dispute resolution
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Exciting Times for Middle East Rail GCC governments plan national and urban rail networks
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Carbon Calculator Celebrates Five Years Bringing greater clarity to sustainable option evaluation
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VIEWPOINT
For further information contact Donald Lawson in our London office. Scan the QR code for full details.
A warm welcome to this issue of Solutions, where we demonstrate our constructive expertise across a diverse range of projects and services. I hope you’ll find something of interest and relevance to you.
We are continuing to invest in our Asia Pacific business. Our drive to support international clients has led us to revitalise our Hong Kong office, now operating under a new management team.
Firstly I’d like to highlight that our parent company Atkins is celebrating 75 years of design, engineering and project management excellence. We are proud to have been part of the Group since 1996, providing project management and commercial services for major projects around the world.
A strategic relocation for our Singapore office has further strengthened our offer in the region, where we are experiencing strong demand for our services. Page 22 outlines the benefits of our building commissioning services in China, where our clients are striving to bring global best practice to their projects.
Increasingly we are providing our services to global clients in their multiple locations. Page 4 discusses our new Paris office, where we are supporting clients throughout France and into wider Europe. We are especially active in the energy, pharmaceuticals and manufacturing sectors, and we recognise Europe as offering opportunity for strong geographical growth of our business.
The tools that support our industry are always an important focus and page 8 discusses the need for BIM to engage with people as well as software and information. Our in-house carbon calculator (shown on the back cover) has now chalked up five successful years, and is a key part of our commitment to supporting our clients’ sustainability goals.
GlaxoSmithKline (GSK) demonstrates our global support in the pharmaceuticals industry and page 6 showcases their Philadelphia headquarters. This is the latest example of GSK’s SMART Working culture change programme, implemented with our help throughout the UK, Europe, Africa, Asia and the Americas.
If you’d like to know more about the projects or services in Solutions, you can make contact with any contributor by using the QR code on each page or via our website. We have a fast growing following on LinkedIn and Twitter, so please join us on those platforms to keep your finger on the pulse of constructive expertise. My colleagues and I appreciate your interest in Faithful+Gould and we would be delighted to hear from you.
The Middle East market remains robust and we are working on some interesting projects. Page 10 profiles our work with Kuwait’s Ministry of Public Works, where we are using our expertise to train a team of project managers, providing a legacy project management office at the end of the commission. The training of local women professionals is an important part of this project, demonstrating Kuwait’s commitment to increase opportunity for its national workforce.
Donald Lawson, CEO Worldwide Operations
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SUPPORTING OUR EUROPEAN CLIENT BASE
Gateway to growth
An influx of opportunities, notably within the pharmaceutical, energy, manufacturing and retail sectors, led to our decision to support our European client base from France. We anticipate growing European demand for our core project management, cost management and consultancy services, especially in France and the surrounding countries. This spearheads a culture change, as the independent project management and cost management roles have not traditionally been recognised in the French construction industry. Depending on project size and complexity, the architect usually acts as a lead consultant with overall project and cost management responsibilities. The cost manager (économiste) acts as a sub-consultant to the architect. However awareness is growing as global inward investors, accustomed to the UK built environment model, demonstrate the benefit of working alongside independent consultancy services. Specifically, our clients in France value our earlier expert engagement with project costs, from feasibility stage onwards, and
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also the resulting clarity between the parties involved. As countries increasingly share best practice, we expect to see further standardisation of methodologies in the built environment industry. There is currently limited understanding of Building Information Modelling (BIM) in France, with only a handful of international organisations implementing BIM on their projects. We anticipate that France will take some time to achieve integrated adoption of BIM standards, but our BIM experience in the US and UK (see also page 8) helps us to support clients with this approach in any location. The growth potential that we see in France is especially prevalent in the energy industry, one of our key strategic sectors. We are working closely with one of the industry’s major European players, EDF Energy, supporting its nuclear new build programme in the UK. Our Paris office underpins our relationship with EDF Energy in its home location, and also facilitates our support for NNB GenCo Ltd. We have teams seconded on site in this sector, working as part of our clients’ organisations, at ITER, the
international fusion experiment under construction in Cadarache, southern France. We continue to expand our support for the pharmaceutical industry in Europe, working with clients in France, Belgium, Germany, Switzerland and Scandinavia. Examples of our commissions include manufacturing facilities in Belgium and Switzerland, a new vial filling facility in Switzerland, and an office optioneering review in Sweden. The hospitality sector is also a growth area. The city of Paris has suffered less than regional France in recession, maintaining its competitiveness as the world’s most visited city. With good air and road links, and high speed rail to London, Brussels, Amsterdam, Frankfurt and Zurich, Paris is a key destination for the conference and exhibition market. Paris is attractive to hotel operators seeking flagship properties in continental Europe, although barriers to entry include a shortage of development sites and high costs associated with conversion of commercial properties.
The food and beverage industry is supported by the robustness of tourism, with France increasingly attracting multinational companies to sit alongside its family-run cafés and restaurants. We are working with Whitbread on the roll-out of its Costa Coffee brand in Paris and throughout France. The Paris retail market is well established and the density of retailers is among the highest in Europe, especially around the Champs-Elysées, Saint-Lazare, Opéra and Madeleine shopping districts. The high-end retail market has remained resilient, with strong demand for prime retail space from international brands. We are currently delivering cost management services for international luxury brand Louis Vuitton. Our Paris office allows us to expand our local team, recruiting and relocating UK-trained Frenchspeaking professionals with an understanding of our key business sectors. The team is demonstrating our expertise for the benefit of our clients throughout Europe.
For further information, contact Olivier Gauthier in our Paris office. Scan the QR code for full details.
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transformation GSK at the philadelphia navy yard
GlaxoSmithKline’s move to its new Philadelphia facility was supported by Faithful+Gould’s Workplace Solutions service. We helped GSK create a modern, collaborative workspace, using lessons developed during our ten-year relationship
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Eric Laignel for Francis Cauffman Eric Laignel for Francis Cauffman. Inset image: Francis Dzikowski / Esto for Robert A.M. Stern Architects, LLP
In February 2013, GlaxoSmithKline (GSK) moved to its new home at Five Crescent Drive in Philadelphia’s historic Navy Yard. GSK’s goal was to provide a great building for its 1,300 employees that supported the collaborative way the organisation now works. This transition to an open plan work environment has led to a more vibrant and collaborative work experience, while substantially reducing GSK’s real estate footprint and operating costs. The 208,000-square-foot building is double LEED® Platinum certified, with energy-efficient glass interior and exterior walls providing daylight and skyline views. The glass atrium entryway forms a high-energy gathering area. The new environment features an open floor plan, shared workstations, formal and informal meeting spaces, quiet rooms and social areas – but no individual offices or cubicle partitioning that form barriers. Implementing an agile working environment demands some very specific skills and experience. Faithful+Gould’s Workplace Solutions service supported GSK in this endeavour. Workplace Solutions is not simply about bricks and mortar - the focus is on helping organisations implement business transformation and change, and Faithful+Gould’s ten-year relationship with GSK has enabled us to do just that. By fully engaging with their philosophy, we have helped GSK implement SMART Working environments throughout the UK, Europe, Americas, Africa and Asia. Our core project management services, including project and cost management, scheduling, risk mitigation and business change management, combine to deliver GSK’s business goals. Our business change management and project management teams, working within a programme management office
(PMO) delivery model, executed the Navy Yard programme.
management, and decommissioning and disposal of GSK’s former leased space.
The move to the Navy Yard heralded a major change for GSK employees who needed to adapt to working in a new way that used space very differently. We explored what the transition of both location and culture meant to their Philadelphia employees, and how we could support them in the process. A comprehensive business change management programme, tailored to the Navy Yard project’s specific needs, was at the heart of making this happen.
Constructing the physical workplace is often less challenging than changing employees’ mindsets and behaviours. Preparing GSK’s employees for the move to an agile working environment was key to maximising programme success. To prepare for a comprehensive and seamless transition, we led a structured training programme that harnessed employees’ ideas and empowered them to feel a sense of ownership. We also developed pilot areas where employees could experience their new workplace prior to the move and offer feedback. We coordinated two sets of moves so that employees left their former workspace on a Friday and began work in the new space on the following Monday with no disruptions. Our services continued after occupation, with our team remaining on site at the Navy Yard to help address any concerns as the workforce settled into their new home. ‘Our new workspace is designed to inspire and connect people,’ says Deirdre Connelly, President, North America Pharmaceuticals, GSK. ‘My teammates and I are energised by this new environment, where we can do our best work and collaborate without the constraints of office walls.’
Our strategic involvement prior to the design stage, when workplace settings were explored, drew on our experience of helping clients rightsize their real estate portfolios. We integrated the detailed change management components directly with the construction activities. The programme coordinated interdependent workstreams to gel the key components of design, culture change, file reduction, technology, transportation, move
For further information contact Iain McWhinney in our Philadelphia office. Scan the QR code for full details.
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Think
beyond the building Building Information Modelling concerns more than just buildings… and more than information. The ‘B’ in BIM suggests to the uninitiated that BIM is all about buildings, yet this is far from the truth. BIM can be used for parts of buildings, whole buildings, collections of buildings, and even where there are no buildings at all (think infrastructure projects). The ‘B’ fits best if we think of ‘building’ as a process, rather than a physical product. The concept of building as process, not product, helps us to engage with both the process and the inter-relationships underpinning construction projects. BIM brings powerful software tools, with supporting protocols emerging to coordinate and structure the information flows which happen during the building process. Error and rework can be reduced, allowing a more efficient process for ‘building through information modelling’ to emerge. Just as the ‘B’ is about more than buildings, the ‘I’ in BIM is about more than coordinated information. Applied correctly, information coordination frees the multi-disciplinary team from seeking, clarifying and updating information, giving more time for value-adding critical thought. There is a risk that BIM software tools will be adopted without the behaviours required to use the tools appropriately. If old behaviours drive new software, there may be some efficiencies, but these fall short of the potential. This is important because whilst information is at the centre of BIM, people remain at the heart of the construction process. Early BIM projects gained advantage from better information coordination, often through discussion at project level to agree how the team would work together – a project level BIM protocol. As we move from a small number of individual BIM projects towards wholesale adoption, the need to agree working principles on a project by project level will become a drag on efficiency. Standardised approaches, such as the
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CIC’s recently published BIM protocol, will become increasingly important. Standardisation of information protocols will prove challenging, and aligning project team behaviours even more so. A common transformational change error is to build tools and assume that behaviours and culture will follow. Standardising practices drawn from leading edge projects and mandating these (whether explicitly or implicitly) may not be sufficient. Embedding BIM as the norm for UK construction projects requires a focus on people as well as software and information. It requires a real appreciation that building is a social process, not just an output. This does not take away the importance of shared and well structured information. Instead it requires that this information is available not only in machine readable, but also people readable form. Above all the model must be something we talk about, as well as something we communicate information through. A key success factor will be the extent to which we help individuals discover their own connection with the model, both personally and in their project team role. Industry commentary about how to adopt BIM must include storytelling, not just about how the technology was adopted, but also about how people worked together differently to create the change. The Knowledge Management (KM) discipline has provided a view on these challenges for the last 20 years. KM itself has undergone a transformation away from information management and librarianship, towards working with knowledge as a social process in which technology plays an important role. A useful concept to borrow from KM is that of knowledge stocks and knowledge flows. BIM can be both a stock – for example a COBIE data drop – and also a flow – for example when the model is used to acquire rich stakeholder feedback on the design. Getting knowledge to flow is about creating the right environment, where individual contributions are acknowledged and there is trust.
For further information, contact Adrian Malone on +44 (0)207 121 2121 adrian.malone@fgould.com
BIM is one element of a far wider construction strategy defined by the UK government. During early adoption, BIM is helping to create trust by prompting project teams to talk about how they will work together. As BIM becomes more generally adopted, these conversations are likely to become shorter, less frequent and more shallow. KM provides a lens through which the importance of the wider construction strategy can be understood. Integrated project insurance is important in enabling collaborative behaviours which engender trust. Soft Landings are important in connecting end users’ needs back to the project origins, weaving the golden thread which creates a shared sense of purpose. Adopting BIM on an industrial level risks retaining information coordination improvements, while potentially losing behavioural change which facilitates value-adding collaboration. The challenge is one of complexity – patterns of behaviour achieved on a small scale do not always replicate as expected to the large scale. These challenges are not new - think of the Latham and Egan reports. Collaboration should remain at the core of BIM and, as standards and protocols play an increasingly important role on BIM projects, it is vital that these are designed and enacted to support interoperability across multi-disciplinary project teams.
For further information contact Adrian Malone in our London office. Scan the QR code for full details.
Faithful+Gould is using BIM to support clients on projects across the UK and internationally, and also strategically to support the continual improvement of our business and service delivery models. As part of the Atkins Group we are actively working within multi-disciplinary teams, both internally and with supply chain partners, to help realise the potential of BIM for clients.
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Kuwait’s
women
project managers
Government invests in training and professional development
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Kuwait’s Ministry of Public Works (MPW) has appointed Faithful+Gould to establish a world-class Project Management Office. The training of local women professionals is an important part of the plan.
GCC economies have long been reliant on expatriate labour, but changes are on the way as governments seek improved long-term economic security and sustainability. Investing in the national population, ensuring they develop the best professional skills, is a priority for governments in the region. Expanding professional women’s participation in the workforce is also becoming more important. Many women in the region have traditionally gone overseas for higher education, with the US especially popular. This is slowly changing, as the gender gap closes on local university education. In nearly two thirds of Middle East countries, there are now more women than men in university according to United Nations statistics. This large pool of highly educated women does not always translate into greater equality in the workplace, but the expectations of women, their families and employers are now beginning to change. Kuwait’s Ministry of Public Works (MPW) demonstrates an excellent example of training opportunity for its women employees. Responsible for the planning, design and construction of most public sector capital projects, the Ministry is now embedding international best practice into its built environment systems. Faithful+Gould is training a team of 180 MPW professionals to manage and operate projects, as part of the Project Management Office (PMO) initiative that will bring a culture change to the Ministry. Ninety of MPW’s team are women, typically with two to five years’ professional experience. Most of the women are graduates (some with master’s degrees) in disciplines including architecture, civil engineering, chemical
engineering, mechanical and electrical engineering, and computer science. Some are now applying for PhD study. In the first phase of the 30-month project, Faithful+Gould partnered with Kuwait United Development and specialist sub-consultant CMCS to review MPW’s existing organisation and the methods used to manage its projects. A tailor-made Project Control System (PCS) has been developed as the second phase, centralising and standardising planning, design, procurement, construction and operation processes. An evaluation and continued training phase will ensure that the newly embedded system is understood and fully functional. Our team of 45 project managers are working closely with MPW to ensure significant legacy benefits. The resulting PMO capability will enable MPW to exercise ongoing control throughout the project lifecycle, including efficient operation and maintenance of completed projects. The training of MPW’s professionals is part of a wider initiative in Kuwait, where incoming consultancies are required to contribute to the country’s investment in training and development. On this project the training comprised 39 days of formal tuition, followed by 39 days of project-based training. Shani Foad, Faithful+Gould Learning and Development manager, commented: ‘The women in MPW’s team are especially enthusiastic and receptive to the project management training they’re receiving. They also provide a great
mutual support network for each other – a collaborative approach that helps women fulfil their potential in this traditionally male-dominated industry. The MPW women are determined to invest in their own training and self-development, which in turn invests in their country’s social and economic wellbeing. ‘In the long term, women could form a significant part of Kuwait’s construction talent pool. The MPW team’s experience will hopefully inspire other Kuwaiti women to establish and sustain successful careers in the construction industry. ‘My own career at Faithful+Gould and Atkins gives me a great opportunity to model progression for women in Kuwait’s construction industry. The Atkins Group has recently been listed in the 2013 Times Top 50 Employers for Women, demonstrating that the construction and engineering industries can offer good opportunities for women. It would be good to see more women in the Middle East – nationals and expatriates – being able to access careers in these industries and I hope we’ll see more employers like MPW leading the way.’ Faithful+Gould offers PMO services globally in a wide variety of public and private sector commissions. As well as thought-leading staff training and mentoring, our PMO service encompasses real estate, construction, IT platform, facilities management, communication and change management, and space management.
For further information contact Shani Foad in our Kuwait office. Scan the QR code for full details.
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KEEPING RAIL COSTS ON TRACK
Rail cost modelling Innovative cost modelling gives faster and more detailed cost analysis of rail infrastructure, at early design stage.
Opening the April 2013 Railtex exhibition, the UK government’s Minister for Transport hailed ‘a time of historic opportunity for the railway.’ Simon Burns MP called for investment and reform, highlighting modernisation of the current network and the importance of the HS2 high speed rail line. He spoke of the increasingly global nature of the rail industry, and the importance of UK-based companies competing internationally. The Minister also emphasised the need to reduce industry costs to make the railway more affordable for taxpayers, passengers and freight customers.
However it is unclear how this money will be raised, prompting concerns about further increased fares.
Building good infrastructure certainly needs investment and also offers a valuable rate of return for UK plc. After decades of under-funding, however, the investment needs to be substantial. The Office of Rail Regulation (ORR) reports the cost of Britain’s railways in 2011-12 as £11.61 billion, up 2.9 per cent from the previous year. ORR’s analysis also examines the effects of inflation, and on this basis costs decreased by 2.1 per cent. ORR also revealed significant regional variations in funding. Public subsidy in 2011-12 was £2.27 per passenger journey in England, £7.67 in Scotland, and £9.15 in Wales.
Rail infrastructure owners typically face a dilemma when exploring initial options for rail schemes. How much should they invest in the early estimating process, in order to have confidence in their budgets? Accurate estimates inevitably require considerable design and cost information, which has rarely been available, reliable or consistent. Unreliable estimates are the result – and a scheme literally off track from day one.
In July 2012 the Department of Transport indicated encouraging levels of future investment via its High Level Output Specification (HLOS) plan for 2014 to 2019.
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Whatever the funding streams, rail infrastructure owners will be expected to demonstrate stringent cost efficiencies in the decade ahead. Understanding and forecasting capital expenditure is especially challenging in this multi-disciplinary industry, and schemes have frequently been criticised for their escalating final costs. Certainty of capital and operational cost is therefore vital in establishing business cases and analysing scheme feasibility.
In response, Faithful+Gould has developed an innovative rail cost modelling process, providing faster and more accurate results than traditional estimates. Our cost models enable more informed early evaluation of project options and design impacts. Although tailored to suit the client’s individual needs, the model is typically used in
one of two ways: project specific or at corporate strategic level. For new-build projects, our models generate detailed information from high level design outputs that can be as simple as a line on a map linking two cities. We utilise our proactively gathered benchmarking data to provide statistical based quantities and unit rates, giving clients an early indication of costs. When sufficient information is available, rates can be produced from first principles considering methodologies and productivities. The results are benchmarked against similar projects to give a credible and robust view. At corporate level the model can be used in many different ways. For example, we have developed models to review the strategic decision making on supply chain management. This informs our clients on the impact of procurement strategies and enables effective long-term planning. Recently we have worked with London Underground on their innovative delivery model, drawing on our experience of procurement, contracts, estimating and, importantly, our knowledge of the way the client works. We can also work in tandem with clients’ own cost modelling teams to help improve operating practices.
We have been asked, for instance, to help clients further develop their internal cost models. A recent complex commission supported Network Rail with improving their data capture structure and maximising performance of their own models. Global experience, often alongside our parent company Atkins, gives us a broader overview of the rail industry, informing our modelling scope and detail. Research into international markets, escalation rates and purchasing power parities are used to ensure the models are relevant globally, and we demonstrate some of our Middle East experience on page 26. The industry has been very receptive to our cost models and we predict an exciting journey ahead as we develop the methodology further. Embodied carbon assessments can already be included and we anticipate further sustainability output in the future. Our rail expertise spans the entire infrastructure development process across multiple types of projects and programmes. The cost modelling service has recently been provided to Network Rail, London Underground, Norway High Speed Rail, Danish High Speed Link, Kuwait Metro Rapid Transit System, and the Kosice to Vienna Broad Gauge Freight Line.
For further information, contact Steve Baldock in our London office. Scan the QR code for full details.
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UK Regeneration
Longbridge Social and economic regeneration of Longbridge continues, transforming this once industrial area bridging Birmingham and Worcestershire.
One of the largest regeneration projects in the West Midlands, St. Modwen’s £1 billion Longbridge scheme has successfully progressed during the recession, in its aim to create a new community with an anticipated 10,000 job opportunities. The autumn 2013 opening of the first phase of Longbridge town centre will bring investment at the site up to £250 million since its acquisition in 2003 by the UK’s leading regeneration specialist, St. Modwen. This investment has included the Innovation Centre and Two Devon Way at the Longbridge Technology Park; Cofton Centre; the £66 million new Bournville College, which opened in September 2011; the first 113 of up to 2,000 new homes which have been delivered in partnership with the government’s
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Homes and Communities Agency (HCA), and a £5 million youth centre, The Factory, which opened in summer 2012. Over 2,725 permanent jobs have been secured in the last six years, with 348 full time equivalent jobs created during the construction process. The total number of jobs created is set to exceed 4,000 over the next two years. Encouragingly, 75 per cent of the first phase of the town centre development is pre-sold, pre-let or under offer. There is a Sainsbury’s store, a 75 bedroom Premier Inn and Beefeater Grill, cafés and restaurants. Construction of two new office buildings, Park Point and Seven House, will also be completed this summer, complementing the existing office space at the adjacent Longbridge Technology Park.
The former home of the iconic Mini, Longbridge’s industrial heritage as the MG Rover site is now fading as the 468 acre scheme finds new inspiration in the greenery of the surrounding Lickey Hills, the nearby Cofton Park and new public parks and open spaces. Sustainability is an important part of the overall regeneration, and the project aims to recycle 95 per cent of on-site material during the development process. Bio-remediation techniques have been used to recycle soil which may have been contaminated by oil and other hydro carbons. The three acre Austin Park is an integral part of the scheme and is the first public park to be built in South West Birmingham in 50 years. Named after Lord Austin of Longbridge, who founded the Austin Motor Company in 1905,
Computer generated image of St. Modwen’s Longbridge scheme highlighting the town centre development
the park includes a 255 metre stretch of the River Rea which was buried under the old factory for nearly 100 years. The river will be returned to an open water course and will be a key feature, together with hundreds of new plants and trees. Faithful+Gould has been part of the Longbridge regeneration story from the earliest days, beginning with the initial demolition and remediation phases, the infrastructure and preparation for plot development, and onwards into construction. Our role includes cost manager, employer’s agent, CDMC, and sustainability services for BREEAM accreditation. Specific challenges have included the multi-stakeholder nature of this large and complex project. Now that much of the site is
Sustainability is an important part of the overall regeneration, and the project aims to recycle 95 per cent of on-site material during the development process operational, there are physical and scheduling constraints and we are drawing on our project management skills to navigate these. We have significant experience of regeneration projects, encompassing a range of challenging schemes, and have used our detailed knowledge of funding mechanisms to support both public and private sector clients.
For further information contact John Redmond in our Birmingham office. Scan the QR code for full details.
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Energy industries
RESPONDING TO STRONGER OFFSHORE SAFETY STANDARDS
The American Petroleum Institute (API), representing America’s oil and natural gas industry, has re-evaluated and strengthened its quality management standards, introducing new quality management system compliance standards in early 2012. The Specification for Quality Management System Requirements for Service Supply Organisations for the Petroleum and Natural Gas Industries is known as the ‘API Q2’ specification. The proposed schedule for voluntary Q2 compliance is aggressive and now launching in North America, the Gulf of Mexico, and rapidly expanding internationally. The new specification is being promoted and driven by major companies within the industry as ‘voluntary/mandatory’, but is expected to become a federal mandate by 2015. Companies are now realising the importance and benefits of these new standards and are beginning to pursue compliance. Since the API is not traditionally a standards implementation organisation, oil and gas producers, servicers, and associated vendors, distributors and suppliers need third-party service providers to help evaluate and integrate Q2 requirements into their operations. In response, Faithful+Gould has partnered with Texas International Engineering Consultants (TIEC), to form a new joint venture called ieAssurance. Our significant energy sector expertise, global footprint, and range of project assurance services brings a clear understanding of the industry’s needs and the skills to deliver. TIEC are well known for their long history of quality compliance and upstream experience. Together, as ieAssurance, we recognise the need for good quality management services, for help to
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implement the critical Q2 elements, and for inspired training in compliance and quality assurance standards. Through a menu of tiered assessment, development, and implementation services, ieAssurance can provide a benchmark of existing status, guiding companies toward compliance with the new API Q2 specification. ieAssurance can service all sectors of the industry supply chain, including oil and gas owners, operators, service providers and vendors. The focus is on quality management systems and making companies more efficient, increasing knowledge and operational efficiency and facilitating understanding, control, and risk reduction throughout the organisation. This approach is aligned with Q2 goals to provide the minimum requirements for the development of a quality management system, with the potential to expand to meet every company’s needs. Using a structured and scalable approach, ieAssurance reviews all client processes related to critical supply chain and quality management systems. This includes onshore and offshore facilities and extending to critical and key suppliers in any location. While implementing and upgrading quality management systems within organisations is challenging, the short and long-term benefits far outweigh the costs to the company in eliminating risks to losses in production, injury, and poor product quality. The ieAssurance team helps the client navigate the culture change that organisations often face when implementing these measures.
ieAssurance is also active at strategic level, working with the oil majors and government agencies to develop the accredited methodology and explore the voluntary and mandatory positions. ieAssurance’s Global Program Director, Jim Grindinger, is an active member of the API quality standards committee. The committee has seen a major increase in leading companies in the upstream oil and gas industry calling for independent third-party support for the programme. This is principally due to the rapid deployment of the changes in quality driven supply chain management that the industry is facing. ieAssurance is actively engaging with many companies within the industry to deliver turnkey Q2 Quality Management System (QMS) compliance programmes and services, as well as now engaging clients in QMS activities for API Specification Q1 for Manufacturing Organisations. ieAssurance’s first major client, Calfrac Well Services (CWS), plans to be the first in the hydraulic fracturing industry to become compliant with the new Q2 specification in North America. ieAssurance has been awarded programme development contracts to support all areas of CWS’s new QMS in preparation for their API compliance audits in the first quarter of 2014. The joint venture is a global initiative, with ieAssurance offering an upcoming full global training schedule for Q1 and Q2 training seminars led by Ed Durante, president of TIEC. As well as client based training, open courses will also be available. The first week-long course is scheduled for Singapore in summer 2013, followed by Aberdeen, Scotland. Plans are under way for future courses to be delivered in Dubai, Beijing and Brazil later in the year. As demand increases, further courses will be delivered.
Inspired training in API Q2 compliance and quality assurance standards.
For further information, contact Jim Grindinger in our Houston office. Scan the QR code for full details.
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KING ABDULAZIZ INTERNATIONAL AIRPORT
saudi arabia
Jeddah’s King Abdulaziz International Airport is forecast to see a four-fold surge in annual passenger capacity to 80 million by 2035. An ambitious expansion plan has been put in place to cater for the increased demand. The new King Abdulaziz International Airport (KAIA) project represents a landmark economic development for the region, capitalising on the Kingdom’s ambitious strategic growth plans. The project will position the airport as an international hub, supporting the national air transportation system and enhancing service as the gateway to the region. The multi-billion dollar project covers 15 square kilometres of land and comprises over 20 new building facilities. Religious tourism brings approximately 2.5 million people to Makkah during the Hajj annual pilgrimage period
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alone, and this is projected to rise to four million in the next few years, further increasing demand for improved airport capacity. The plans include a High Speed rail link and Light Rail Transit connections to allow better access to major cities including Makkah and Madinah. Phase one, undertaken by Saudi Binladin Group, will take capacity to 30 million passengers per annum. A new terminal building (projected to open in 2014) houses 46 gates, 96 boarding bridges, 200 check-in desks and 80 self-service check-ins. The air traffic control tower will be the world’s tallest at 136 metres. The global aviation sector has seen an increased trend towards non-aeronautical revenues, and KAIA is no exception. The plans include the development of Airport City, incorporating destination high end retail shops, hotels and restaurants. A mosque with an iconic minaret will accommodate over 2,000 worshippers. There will also be a transportation centre with aquarium, together
with leisure, education and commercial developments. Saudi Arabia’s strategic plan to increase the number of domestic airports and improve air transportation across the Kingdom was given a further boost in October 2012 as the General Authority of Civil Aviation (GACA) confirmed plans to build three new airports in Jazan, Abha and Al Qasim. This is expected to add capacity for a further 7.3 million more passengers each year. Faithful+Gould is providing cost and programme management services for the KAIA expansion. Working as an extension of the client’s team, we are responsible for construction planning and sequencing to ensure the project is delivered on time and to budget. We have significant expertise in the transportation sector. In the aviation sector we have worked on Dubai International airport, and Salalah and Muscat airports in Oman. Further afield, our US portfolio includes
Sacramento, San Francisco, JFK New York, Newark, Chicago, Houston, Los Angeles and Atlanta airports. In Europe our experience includes Madrid Barajas, London Heathrow, London Gatwick, London Stansted, London City, London Luton, Birmingham International and Manchester airports. Our global experience covers airside/landside infrastructure, baggage handling, major termini, terminal refurbishment and extensions, piers, people movers, major infrastructure, runways and apron works, surface access, airport systems, aircraft maintenance facilities, fuelling facilities and non-operational property. We have been active in the Middle East for 18 years, with offices across the GCC and a permanent presence in Saudi Arabia since 2009. With 100 staff based in offices in Riyadh, Jeddah and Al Khobar, we provide a strong suite of project management, cost management and consultancy services to clients throughout the Kingdom.
For further information, contact Myles Finger in our Dubai office. Scan the QR code for full details.
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For further information, contact Jim MacFarlane in our London office. Scan the QR code for full details.
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FACILITIES MANAGEMENT OUTSOURCING
sharpening the focus Both public and private sectors are continually courted by the FM service sector, with tempting offers to outsource non-core services. Do outsourcing outcomes live up to those promises?
taxation must figure somewhere. Significant efficiencies will have to be identified for cost savings to be achieved. The client organisation will want to ensure that this is truly down to efficiency, not service reduction.
The facilities management (FM) technical press has much to say on the benefits of outsourcing. The FM service industry naturally emphasises these benefits in its approach to market opportunities but cannot be expected to provide independent and unbiased views.
The ‘flexibility’ argument – flexing services in response to a changing portfolio is potentially more straightforward for the client of an outsourced service. However, the implications of TUPE employee protection, together with service providers’ wish to avoid staff redundancy and redeployment costs, make this less straightforward than the FM industry suggests.
Outsourcing is usually portrayed as a solution that saves costs, improves service quality and knowledge, and facilitates ‘industry best practice.’ Organisations considering outsourcing have often accepted these risky assertions without much research or checking.
The case in principle The case for outsourcing in principle is a simple one, based on these arguments in favour: • The ‘non core’ argument – whatever the organisation’s business, it is unlikely to be delivery of FM services. Therefore, it won’t be configured to deliver these services effectively, or in an industry standard way.
• The ‘expertise and innovation’ argument – an external provider has other clients in differing business sectors, effecting a synthesis of best practice and innovation that will somehow be shared by association. There is some justification here. FM providers should indeed have a better FM delivery model and, because FM is their core business, they should have the experience to operate effectively. This should result in cost-effective service delivery with access to industry best practice and innovation. In turn, the client organisation should benefit from being able to ’switch on and switch off’ the services they require, flexing their property servicing needs more easily.
The case in practice In Faithful+Gould’s experience, the practical application and outcomes of outsourcing can differ significantly from the benefits promised by service providers.
• The ‘cost’ argument – the organisation doesn’t fully understand the FM service, cannot run it effectively and cannot readily tap in to economies of scale. Therefore it must be cheaper to outsource.
The ‘non core’ argument – in our experience, professional providers delivering FM as their core offering are variable and wholly dependent on the individuals delivering the service. The FM client’s ability to incentivise the provider is a key factor. Use of an outsourced provider is no guarantee of quality.
• The ‘flexibility’ argument – an external resource allows an organisation to adapt more readily to changing conditions and to modify its activities in the light of experience.
The ‘cost’ argument – clearly a well-managed self-delivered FM service should be less expensive than an outsourced service. Service provider margin, VAT implications and other
The ‘expertise and innovation’ argument – FM is a service defined by management of day-to-day, business-as-usual tasks. It is all too easy, and regrettably common, for service providers to focus on business as usual and not deliver innovation. Outsourcing of FM services can certainly deliver benefit and is a real option for organisations who don’t want to manage services themselves. But it can also fail and fail badly. We always advise our clients to carry out a full analysis and options appraisal, with a realistic review of costs and benefits. If outsourcing is the winning option, follow up with a well-planned procurement exercise to select the delivery partner. Ensure that outcomes are tracked and that promises made in the heat of procurement are secured in a contractual agreement and then monitored. Faithful+Gould helps clients with the analysis, decision making and processes around FM delivery – including, if it’s appropriate, the outsourcing process. We have no rigid views and our focus is on helping clients identify the best solution for their individual circumstances.
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China
BUILDING COMMISSIONING BRINGS ENERGY EFFICIENCY
Shanghai
For further information, contact Yingchu Qian in our Shanghai office. Scan the QR code for full details.
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China’s buildings see real efficiencies through lower capital and operating costs, together with reduced energy consumption.
China’s rapid economic development and urbanisation has created the world’s largest construction market, representing 24 per cent of domestic GDP and forecast to account for a fifth of global construction output by 2020.
China’s central government is actively addressing these concerns. Its Eleventh Five-Year Plan (2006–2010) achieved a 19 per cent reduction in energy consumption per unit of GDP by 2010 and the Twelfth Five-Year Plan (2011-2015) aims for a further 16 per cent reduction on 2010 levels. The construction industry plays an important part in these ambitious targets, as buildings represent one of the largest energy drains. The government now requires higher energy savings from new construction and has introduced incentives to achieve this. However transforming low carbon construction ideals into reality remains a challenge. China’s Green Building Label (GBL), also known as the Three Star System, was launched in 2006 but uptake has been rather slow and regional distribution is uneven. China’s construction industry is large and fragmented and experiences difficulties in monitoring and enforcing standards throughout the provinces and cities. As a result, most of China’s green building projects fall short of international standards for energy use, water conservation, design and materials. Multinational inward investors usually pursue LEED for their projects, although some seek dual LEED and GBL accreditation. The domestic construction industry remains relatively immature in its approach to sustainability and is just beginning to consider the impact of buildings’ operational energy efficiency. Influenced by our global sustainability
Raffles City, Chengdu
Environmental challenges have dramatically increased alongside economic growth. China has overtaken the US as the world’s largest greenhouse gas emitter, high levels of air pollution regularly surround the largest cities, and depletion of natural resources is also an issue.
known as retro‑commissioning or re‑commissioning. This allows owners to plan for maintenance, replacement, and energy conservation, improving the way building systems work together, to avoid inefficiency and wasted energy.
experience, Faithful+Gould has successfully introduced, and continues to lead, the concept of energy saving throughout a building’s life. Our enhanced building commissioning service has an important role. Building commissioning ensures that new buildings and their systems are optimally installed and performing as designed. This is especially pertinent in China, where we see significant investment in mechanical and electrical services and building maintenance systems. Yet these systems do not perform as designed, due to inadequate planning, design, installation, testing and commissioning. Our design specialists and engineers carry out a systematic commissioning process which includes all the above steps. This ensures the systems can be operated and maintained to perform as the design intends, protecting capital investment, maximising operational cost savings and seeking sustainability gains. The commissioning is ideally integrated into the original planning, designing and installation process to ensure a fully functioning building and best value for investment. Early integration makes the process preventative rather than reactive, designing the system around precise demands, without wasted capacity. Existing buildings can benefit from a practice
Uptake for the building commissioning service is driven by real savings and added efficiency gains. Everyone benefits from this process. Owners achieve reduced capital, operating and maintenance costs, and gain energy savings. Building managers notice fewer occupant complaints and increased ability to manage systems. Building occupants are comfortable and confident in their environment’s reliability. Although building commissioning is not part of the GBL accreditation system, our multinational clients understand and are keen to incorporate it on their projects. Regional players, including developers from Hong Kong, Singapore and some of the more forward thinking Chinese companies, are also attuned to the benefits. Other domestic players are becoming aware, but are currently the slowest adopters in the market. Sustainability and Energy is a key growth service for Faithful+Gould in China, where we are pioneering building commissioning expertise alongside our other innovative sustainability, operational and strategic asset management services. Our most recent building commissioning appointments include a mixed development of five commercial tower blocks in Chengdu. On this development we realised significant energy savings and lower maintenance costs. We also achieved a substantial reduction on initial investment by integrating the building’s use and occupation into design. For example, by reducing the numbers of pumps and valves from the chilled water system, we not only helped the client save on capital investment, but we also achieved the goal of a green building with high energy efficiency, reflected in the significant energy cost saving achieved in an affordable manner.
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expert determination
Faster, cost-effective dispute resolution
Expert determination is a form of dispute resolution often overlooked in favour of adjudication, arbitration or litigation, but it offers both parties a quick, confidential, and cost-effective process. UK construction and engineering disputes are often formally resolved by an adversarial process or by agreement. However formality often dissuades parties, even though they may have an automatic right to, or the contract may call for, a particular procedure by default. Whilst adversarial procedures (adjudication, arbitration or litigation) are initially private, appealing against these procedures normally requires the parties to commence legal proceedings – a public process. This can bring the substantive parts of the dispute into the public domain. Furthermore the parties are rarely in control. They may be subject to statutory or contractual timescales, or obliged to adhere to dates set by an adjudicator, arbitrator or the court. Mediation is the most popular means of formally and privately resolving a dispute by agreement, but this relies upon the parties reaching a consensus facilitated by a third party. However the parties often fail to ‘settle’ and the dispute rumbles on. Expert determination is an often overlooked alternative. This is an agreement, written into the contract or made thereafter, that an independent third party will decide a dispute. It provides certainty, as the parties agree that the expert’s determination is final and binding. The dispute is resolved in a single step so cannot be appealed.
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A properly determined dispute should not be susceptible to challenge, unless the expert fails to act in accordance with instructions, or there is evidence of fraud, collusion or bias. Expert determination shares many of its principles with adversarial processes. Like adjudication and arbitration, the parties rely upon an experienced, technical practitioner, such as an engineer or quantity surveyor, using expertise to resolve the dispute. There is a clear cost advantage over litigation or arbitration, as parties avoid the expense of appointing their own individual expert. The process can also be far less formal. The timetable and procedure for each party submitting their case to the expert can be agreed, so neither expert nor parties are constrained by an immovable timetable set by statute or the contract. For example, an adjudication run over a holiday period causes difficulties not only for the parties, but also for the adjudicator. Expert determination can avoid this by the parties simply agreeing to exclude a holiday period from the timetable. Experts’ determinations can be swiftly enforced as they can only be challenged on limited grounds. There is no right of appeal, so the courts are less likely to investigate (and report on) the substantive matters in dispute. Instead their focus is on the expert’s conduct and procedure. This provides the parties with greater
confidentiality as the detail of their dispute should remain undisclosed. For an expert determination to be successful, the parties and the expert may find these steps helpful: • Obtain a precise description of the parties’ dispute • Discuss and clearly agree the scope of the expert’s instructions • Ensure the terms of appointment are clearly defined and agreed, stating that the expert is not acting as an arbitrator • Adopt a realistic and practicable timetable, and a friendly, visibly fair and co-operative procedure • Be helpful to both parties – offer to provide reasons for the determination. This method is an effective and attractive option, especially with relatively straightforward disputes. It works well where a fast decision is required, often on a technical issue. Usually the facts are not in dispute, but rather there is genuine difference of opinion. Common applications include defective or incomplete work, variations, extension of time claims, and land and boundary matters. Expert determination fits especially well with collaborative ways of working and ideally the process will provide not only resolution, but also lessons learned for both parties.
For further information contact Guy Higginbottom in our Birmingham office. Scan the QR code for full details.
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exciting times for
middle east
The rapid growth of urbanisation has prompted exploration of alternative modes of passenger transport, with rail emerging as the leader. Commercial transport and logistics requirements also point to rail as the best way to reduce road congestion and increase freight efficiency. The UAE pioneered the region’s rail revolution with the Dubai Metro project and this has triggered a series of similar projects.
trade. The planned route goes down the Gulf coast from Kuwait, through Saudi Arabia, to the UAE and Oman, with branches linking Bahrain and Qatar.
Each country has different priorities but all have plans to boost their economies and improve connectivity through sustainable rail transport. Projects totalling USD 149 billion are planned or underway in the region1, including national railway systems, long distance freight routes, metro, tram and monorail systems.
However the GCC governments need national rail networks in place before this scheme can become a reality. Each of the six member states has launched individual long-range projects and these are proceeding at widely varying paces. Determining the cost-sharing process and the governance of the scheme will be challenging. Efficient coordination between the different rail authorities is untested here and achieving interoperability, with uniform standards and specifications on the six networks, is expected to be difficult.
The most ambitious project is the development of the 2,177 kilometre GCC Rail Network, linking the member states and boosting intra-regional
In the meantime the countries are also focusing on their urban transport schemes. Consumer attitudes towards these remain a
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challenge, as low petrol costs have meant little incentive to leave the car at home. Transport planning will now need to address this, developing projects in the context of wider intermodal transportation systems, including buses, light rail and cars. Integration of rail/metro/ tram stations into current and planned residential and business areas, with efficient modal connectivity, will drive culture change. In line with global trends, there is potential for commercialisation of stations to encompass retail facilities, making the stations attractive destinations in their own right. Successful delivery of the region’s ambitious plans will present strong challenges. Although there is clear opportunity and tremendous appetite for rail development, the lack of local experience and the scale of activity are significant barriers. Rail is a new concept for most of the region, and there is little precedence
rail
for coordinating huge infrastructure projects that require land acquisition, complex statutory authority approvals and long-term funding, procurement and resourcing strategies. Planning and integration of these projects within the wider construction market will be vital, to prevent overheating in the marketplace. Logistics planning will be especially important, to overcome the limited capacity of the existing regional infrastructure. The increased demand for materials will create further pressure on already constrained ports and highways. Saudi Arabia and Qatar are currently seeing the highest activity in the rail sector, followed by Oman, Kuwait and the UAE. Saudi Arabia’s latest plans are to invest in a new public transport system covering roads, railways and seaways in Jeddah (see page 18 for news on King Abdulaziz International Airport). Similar multi-modal projects
The rail sector is one of the most robust markets in the Middle East region, key to the GCC governments’ commitment to longterm infrastructure development.
were earlier approved for Riyadh and Makkah. The rail sector forms an important part of Faithful+Gould’s strategic growth in the Middle East. We have considerable cost management, project management and cost modelling experience in the rail industry (see page 12 for more on rail cost modelling). Our expertise is reinforced by strong links with our parent company Atkins, leading providers of rail engineering and systems design. Together with Atkins we are working on a range of rail infrastructure projects, including a Central Planning Office (CPO) to coordinate Qatar’s road, rail and metro projects, with improvements ahead of the FIFA 2022 World Cup. Other commissions include Kuwait Metro, Etihad Rail UAE, Dubai Metro UAE, Qatar’s Lusail LRT and a PPP development at the Union Square Metro site in the central Bur Dubai area.
For further information, contact Graeme Bampton in our Doha office. Scan the QR code for full details.
1. Source: Zawya
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Faithful+Gould’s free online construction carbon calculator has brought greater clarity to sustainable option evaluation. UK AND EUROPE Aberdeen +44 (0)1224 620202 Athens +30 210 724 1311 Belfast +44 (0)28 9089 5870 Birmingham +44 (0)121 483 5483 Bristol +44 (0)1454 663000 Cambridge +44 (0)1223 814200 Cardiff +44 (0)2920 485181 Colchester +44 (0)1206 732100 Dublin +353 1890 8600 Edinburgh +44 (0)131 221 5600 Epsom +44 (0)1372 753121 Exeter +44 (0)1392 813100 Glasgow +44 (0)141 220 2200 Leeds +44 (0)113 306 6600 London +44 (0)20 7121 2121 Newcastle upon Tyne +44 (0)191 272 5150 Nottingham +44 (0)115 957 4800 Oxford +44 (0)1865 734100 Paris +33 142 68 50 65 Southampton +44 (0)23 8033 8835 Stockton-on-Tees +44 (0)1642 675136 Stoke-on-Trent +44 (0)1782 222233 Swansea +44 (0)1792 641185 Tunbridge Wells +44 (0)1892 510500 Warrington +44 (0)1925 238300 NORTH AMERICA
Carbon Calculator Celebrates Five Years
Atlanta Boston Chicago Dallas Houston Los Angeles Minneapolis New Orleans New York Orlando Philadelphia Phoenix Portland San Fancisco San Juan Seattle Toronto Washington, DC SOUTH AMERICA Rio de Janeiro
Celebrating five years since its inception, our online carbon calculator allows industry professionals to evaluate carbon impacts at the earliest stages of construction. The calculator is a great way for non-technical owners and occupiers to assess the relative cost benefits and carbon impacts on projects. This is the starting point for budget-plausible design targets. We’ve continued to invest in our carbon calculator. In response to market demand we’ve recently updated the calculator so that it can handle operational carbon as well as embodied carbon. Operational (or in use) carbon refers to carbon dioxide emitted during the life of a building, from the heating, cooling, lighting, and ICT for example. Embodied carbon reflects the manufacture, transport and construction of building materials.
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An understanding of both types allows you to create the best designs and specifications for a low carbon building that performs well over its whole life. As lead authors of the 2012 RICS Methodology to calculate embodied carbon of materials, Faithful+Gould is an industry expert at the forefront of carbon management. We can now include embodied carbon reporting as part of every cost plan, helping our clients to be a step ahead of competitors on legislative, CSR and cost efficiency levels. Take a look at our carbon calculator today, for an overview of your project’s operational and embodied carbon. fgould.com/carbon-calculator
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