Issue 1 | February 2012
GROUP SERVICES
Finance and Administration
Introduction by Peter Hicks EGM Finance and Administration
Contents Group Finance Steven Dransfield ....................................................................................................................................................................04 Infrastructure Investment Thao Oakley ....................................................................................................................................................................06 Group IT Diane Fernley-Jones ....................................................................................................................................................................10 Business Services Barry Vesperman ....................................................................................................................................................................12 Public-Private Partnership (PPP) Services Michael Schur ....................................................................................................................................................................14 Risk & Review David Willows ....................................................................................................................................................................16 Legal & Company Secretariat John Morton ....................................................................................................................................................................18 Pre Contracts Chris Chwee ....................................................................................................................................................................22
Editor’s note In our first Newsletter for Group Services (Finance and Administration), all areas are profiled with an overview of their roles and responsibilities. As we go forward with the newsletter (published every two months) we will feature Group Services (Finance and Administration) news and articles. Your articles and suggestions for content would be welcomed. Please send to karen.peck@leicon.com.au
Dear Team, Welcome to the first Group Services (Finance and Administration) newsletter. I hope that it will give you an overview and a better understanding of all the members of the team and how they fit into Group Services. Group Services is a key part of the Leighton Contractors group providing many essential skills and knowledge that together assist the success of the whole of Leighton Contractors. Many of you may not be aware that I have begun the year with two editions of my blog. I attempt to add a blog fortnightly and include the latest key issues and activities. I would welcome your feedback, questions or comments on either the blog or this newsletter. See my area on the Our Leaders section on the intranet for my blog and a link to ask me a question.
The Senior Leadership Team (SLT) of Group Services meets regularly to share information and discuss any issues facing Group Services. The most positive aspect of the SLT meetings to date has been having the opportunities for collaboration identified. You should all be included in a similar regular information forum. If you are not currently part of a forum, please discuss with your relevant General or Group Manager. Safety is our number one value and I am championing the rollout of Cintellate within Group Services.
All members of Group Services are expected to have a completed PDR for 2012 by the end of February. Over the next quarter I will be meeting with all Group Services management teams, all General or Group Managers and their direct reports. By the middle of the year I aim to have met every member of the team. I am looking forward to working with you to make Group Services an even more successful part of the LCPL Group.
I request your support in ensuring Cintellate is always used for reporting all safety related matters. The other key priority leading up to the end of February is the completion of Performance Development Reviews (PDRs).
Peter
Group Finance Steven Dransfield
Group Finance is led by Steven Dransfield who is also responsible for the governance of the Oracle deployment. Group Finance works closely with the Group Executive and all of the Division and business unit finance teams, and many of the larger project teams to plan, budget and report the financial needs and performance of the Group.
Financial Systems is led by Maurice The team also works closely with Leighton Cohen and is responsible for TM1 Holdings in the strategy, treasury and finance development and administration. The spaces on a range of day to day requirements team are also working closely with the and special projects. External partners include Oracle Analytics team to produce a their auditors, banks and various consulting comprehensive and seamless business partners. intelligence solution for the group The team is a group of 30 highly qualified Special Projects is led by Ian Pipe. professionals experienced in accounting, This team is responsible for leading finance and systems, who are responsible and coordinating major improvement for providing policy, governance, planning, and change initiatives that improve the budgeting, reporting, analysis and advisory Group’s financial and administration services for the LCPL Group in the following capability. The team also provide areas: support for broader group initiatives Group Reporting is led by Arno Becker as required. Current projects are the and is responsible for management Capital Management Framework, reporting, financial reporting, board Overhead Efficiency Review, the reporting, financial analysis and specialist New Financial Year Transition, and a accounting advisory new cash flow reporting suite for the business and projects Group Tax is led by Gary Laker and provides oversight and transactional support for all of the group’s state, federal and international tax requirements Group Treasury is led by Nick Osler and is responsible for forecasting and managing the group’s cash flow, funding, security instruments, and capital management requirements
04 | Group Finance
2011 achievements and highlights 2011 was a busy year for the team with several achievements and some big changes. The Financial Systems team supported several Oracle deployments and the Treasury team continued to develop and rollout a new suite of cash flow reporting tools to the business.
Profile:
Nick Osler
I am the Group Treasurer based in the Corporate Office, Chatswood and my primary responsibility is for the effective management of the Group’s cash, capital and financial risks (e.g. foreign currency and commodities – such as diesel, bitumen, metal price risk). In addition I manage relationships with our bankers, ensuring we have the right banking products, such as electronic banking systems, payment processing software and corporate card programs, in place to meet the businesses needs.
New frameworks and business standards have being drafted for the Overhead and Capital Management areas and are now under review by the business. The Cash Flow Return on Investment and Economic Profit metrics were introduced to the business as a part of Leighton Holdings’ initiative to assist with capital allocation and performance measurement. Toward the end of the year many of the operational accounting team transferred to Business Services, and the combined Business Services and Group Finance teams successfully transitioned to the new December financial year. 2012 priorities In 2012, the focus will be on supporting the remaining Oracle deployments, consolidating the new financial year and Treasury cash flow tools, and continuing to take a leading role in major improvement initiatives in capital management and overheads. Group Finance is also looking to repositioning the team to being a highly valued thought leader and business partner for the businesses and group service functions.
This means putting in place systems, products, tools, guidelines, processes and policies to manage cash and capital, financial risks and our banking requirements. The challenges in the role include the demands of servicing a wide range of business functions, ensuring systems and business intelligence tools such as our cash management module in TM1 are sufficiently flexible and scalable to keep pace with change in the business, and trying to pick the direction of the Aussie Dollar!
I enjoy a great mix of operational, project and strategic/change related initiatives and challenges, in a project-based company with very different businesses. As part of the changes that are happening all around us at Leighton Contractors my role will also change. That’s a good thing in itself.
Infrastructure Investment Thao Oakey
The 25 strong Infrastructure Investment (II) team leads Public Private Partnerships (PPPs) and other privately financed projects, tenders and developments as a sponsor and developer, as well as assisting other divisions with commercial and finance arranging advice where private finance for the whole, or part, of the project may be sought by the client.
This includes: Consortium leadership and project strategy; Co-ordination and management of tender program Identification, engagement and alignment of expert partners and advisors; Risk allocation – intra consortium and with Client; Stakeholder and community engagement; Management of bid costs; and Management of LCPL’s equity investments and disposals Key clients/customers/partners: Infrastructure Investments key partners are LCPL Divisions, the Government, financial institutions, institutional investors, financial advisors and special purpose vehicles established for projects.
Examples of these (external to Leighton Contractors) are: Government Commonwealth Department of Defence Dept Education & Training (Qld) NSW and other State Treasuries Queensland Government Queensland Treasury Corporation Queensland Department of Infrastructure SA Health WA Department of Correctional Services Brisbane City Council NSW Roads & Maritime Services NZ Government Special Purpose Vehicles (Project Companies) Aspire Schools Cross City Motorway SA Health Partnership RiverCity Motorway
06 | Infrastructure Investment
Financial Institutions
Institutional investors
ANZ
AMP Capital
Bank of Tokyo Mitsubishi
APG (Dutch Pension Fund)
BBVA
Bilfinger Berger Project Investments
Commonwealth Bank of Australia
Borealis Infrastructure
NAB Capital
Canada Pension Plan Investment Board
RBS Group (Australia) Pty Ltd
Hastings Funds Management Limited
Santander
HBOS-Lloyds-Uberior
Sumitomo Mitsui
HSBC Specialist Investments
United Overseas Bank
Industry Funds Management
West LB
John Laing
Westpac
Infrared Palisade Investment Partners
Financial Advisors Deutsche Bank Ernst & Young Macquarie Capital Advisers PriceWaterhouseCoopers KPMG BTMU
Queensland Investment Corporation REST Unisuper Victorian Funds Management
2011 achievements and highlights Infrastructure Investment acted as sponsor, and equity investor in a number of significant PPP projects during 2011. These projects involved the team working closely with other businesses within Leighton Contractors, including Construction and Facilities Management. Their successes include: The new Royal Adelaide Hospital Project, Australia’s largest Health PPP project, reached financial close in June 2011 Wiri Prison PPP: our consortium (GLM) was shortlisted for the RFP stage of the project and submitted its proposal in August 2011. In late 2011, our consortium was advised it was one of the final two consortia being considered by the NZ Government. Eastern Goldfields Regional Prison (WA): Our Consortium (Aurum Partnership) was shortlisted by the WA Government to proceed to the tender stage of the project. Our consortium (LMACH) submitted an Expression of Interest for the Bendigo Hospital project in Victoria. 2012 priorities In 2012 the team’s priorities include establishing the Leighton Contractors’ Infrastructure Partnership Fund (LCIP). II is in the final development stages for LCIP and is working with an Australasian fund manager and Australian and international investors. LCIP will be a strategic partner for Leighton Contractors providing equity to our social infrastructure projects. The team is also focussed on winning 2 PPP projects which are in tender stage, Wiri Prison (NZ) and Eastern Goldfields Regional Prison (WA) and consortium formation for future PPP projects such as North West Rail and Northern Beaches Hospital in NSW and EastWest Link in Vic. Investment Infrastructure will continue to work with other Leighton Contractors businesses (such as Mining and Telcos) and provide financial structuring and capital raising advice to assist with business development and projects, as well as exploring development project opportunities in conjunction with Leighton Contractors businesses.
08 | Infrastructure Investment
Profile:
Camilla Drover
I am Deputy Project Director, Infrastructure Investment (II) and I am based in Phillip Street, Sydney. My role involves the development of privately financed infrastructure for Leighton Contractors – both PPP and non-PPP projects. This entails the early formation of a consortium and special purpose investment vehicle (SPV) to bid or develop the project, and the partnering with co-sponsors and equity investors, debt providers, and a wide range of technical and commercial consultants to arrange and secure the finance, and lead the development of the bid’s solution. With an engineering and construction background, I am often involved in the development of the technical Design & Construction (D&C) and Operations & Maintenance (O&M) offers – including design and pricing assessment, technical due diligence for the banks and contractual negotiations for the D&C and O&M Contracts, plus interface with equity and debt providers. I’ve had other projects roles too around bid management and delivery, debt and equity raising, tax and accounting. I am also looking to take a lead role with the debt and equity work-streams in up-coming projects. On my most recent project, the CopperString Transmission Project, I led the technical work-streams. The project was to connect the developing mining operations and communities of NW Queensland, around the Mt Isa region to power from the national electricity grid at Townsville over a distance of 1,100km. The role included: the development of the technical specifications for the design, construction and operations of the line
negotiations of the D&C, O&M and NSP Contracts; negotiations with key stakeholders including our mining customers and the adjacent transmission networks, being Powerlink and Ergon Energy, and interface with equity and debt providers; management of the technical consultants, including the Owner’s Engineer and Technical Due Diligence consultant. It was a varied and multi-disciplined role with lots of stakeholders which I relished, but CopperString is unlikely to proceed given our major clients have opted for a local gas-fired generation solution. One of the main challenges in my role is the bidding of any large and complex privately financed project is always intensive – especially given number of factors and stakeholders involved. I often say all the stars need to align to submit a competitive offer – the partnership, the design, the construction solution, the operations and maintenance offer, the equity investment and the debt funding must all be winning!
meet a whole new team of internal and external people – D&C, O&M, consultants, designers, stakeholders and clients. I also like working across disciplines – a combination of technical, financial and commercial; critiquing a construction program one minute, then cost plans, then O&M solutions, negotiating contracts, and interfacing with equity and finance providers. Having the ability to drill down into key technical matters allows me to be better informed to assess and allocate risk, and deliver an efficient bid. On the Eastern Goldfields Regional Prison project in WA, I have a mentoring role to support Richard Alford deliver the technical work-stream for II. I am enjoying this and helping to foster the technical expertise within the team. Richard and I worked together on CopperString, which was Richard’s first project with II, having transferred from Northern Region.
The move for Infrastructure Investment (II) back to Corporate should provide greater opportunities for our II team to pursue non-PPP projects, such as Leightonled development projects, and other Given the lack of economic activity in NSW in investment opportunities. There may recent years, the majority of PPP projects have been interstate, so travel to Melbourne, Adelaide be a greater opportunity to be involved with resource projects too, which require and Brisbane has been part of the role. significant investment but not under the PPP model. I’d also love to see a project The true challenge for the role is actually through from end-to-end: from the pre-EOI an opportunity, and this is to work across / consortium formation stage, right through disciplines and with so many individuals the EOI, RFP and Financial Close process from within Leighton Contractors and for a deal. external organisations. The key is to work collaboratively with all, but be singly focussed on what is best for the bid, and lead a competitive offer which meets the client’s and investor’s expectations.
I love the mix within my role and the ability to shape an outcome. I have had the opportunity to work on projects as diverse as a bioscience research centre, a hospital, a transmission assessment of the D&C, O&M and line and a prison and am about to work on Network Service Provider (NSP) offers another hospital and a passenger rail line. submitted by Leighton Contractors’ Construction, I&E and Services divisions, As sectors change with projects, you quickly learn about each new sector, and usually and our partners CuString for the NSP;
Group IT Diane Fernley-Jones
Group IT is responsible for the provision of information technology and telecommunications for Leighton Contractors across Australia and New Zealand with many sites in remote locations.
Their services include:
2011 achievements and highlights
Strategy, Architecture and Planning
Group IT was proud to report zero safety incidents among the teams in 2011 with a PDR process in place for all of their people, including leader once removed forums. The feedback from the 2010 Your Say survey was addressed through action groups from all areas of Group IT and the team delivered all agreed strategic objectives in line with their business plan in 2011.
Service Desk Desktop and Infrastructure Support Project Services including Implementation of the Business Project sites Unified Communications, includes all aspects of communications links, email management, video conferencing Business Analysis and Project Management Applications delivery and Support (Oracle and legacy) Technical Services including Database Administration and Systems Management The team of 140 across the business works alongside Leighton Holdings on strategic direction. Their other key partners and clients include Oracle, Oakton, Infoplex, Microsoft, Nextgen, Telstra, Astron Technology and Hewlett Packard.
These objectives included: Operational performance in line with industry benchmarks including service desk Deployment of Windows 7 across LCPL within budget Implementation of Intranet & Portal capability in line with agreed business objectives Migration to Oracle Payroll for Construction, Industrial & Energy and LIFM enabling the decommissioning of Alesco payroll system 97 projects mobilised in six months to Dec 2011 and on target with quality, scope and budget measures
10 | Group IT
Profile:
Steve Reynolds
I lead the Group IT Project Services team based in the SA Branch office in Adelaide. I manage a team of nine Project Managers spread across the country (5 x Sydney, 2 x Brisbane, 2 x Perth) with the team responsible for managing the setup of IT infrastructure and equipment for all of our project sites across Australia, New Zealand and PNG.
Transparency of project delivery through monthly project portfolio packs Establishment of engagement forums across all Divisions through IT Focus meetings Implementation of new Financial Year end across all applications Delivery of Information Management transition plan and critical underpinning activities to enable transition of HWEIO to BHP Billiton Financial performance within budget. Gross costs six percent favourable on forecast and within 1.6 percent of revenue Ongoing focus on vendor management with demonstrated cost savings In 2012 the priorities for Group IT are based around the completion and handover of Project Splice and the rollout of Oracle for remaining businesses. They are also working on the articulation of a new cost allocation model and are aiming for a gross cost reduction of ten percent.
While challenging, I am able to juggle team and project personnel’s availabilities within business hours and across multiple time zones.
The only thing I would change is to be able to meet more and more people on our project sites to learn more about what they do and how they manage their I am fortunate to be able to interact with a large projects. This would provide me with more number of people across all business units knowledge and insight to assist in and and regions. To have that opportunity and to continually improve the service that my work with and alongside many people with team can provide. different characters and personalities always makes my day interesting and enjoyable.
Business Services Barry Vesperman
Business Services is responsible for executing and supporting cost effective transactional processes with a view to making the frontline more focused on value add activities, and improving scalability and efficiencies through effective systems and processes.
The current scope for Business Services includes: Payroll Accounts Payable General Accounting Cash Management Credit Card Management Travel and Event management Oracle Non-Transactional Data Oracle Functional Support Oracle Training Office Services (Chatswood premises) Oracle Deployment Governance Enterprise Process Analysis Business Services’ key clients and stakeholders are LCPL Divisions, Group Finance, Group IT and Group People & Capability.
12 | Business Services
2011 achievements and highlights In 2011 the team migrated the transactional and compliance Business Services Advisory Group to provide governance and strategic direction. They also migrated the transactional and compliance elements of Group Finance and Treasury to Business Services and kicked off a Standardisation and Improvement Program (SIP) in Payroll with an aim standardise and improve performance across Corporate, Resources and Telco payroll departments. In 2011 Business Services’ team of 92 people moved to new premises at 799 Pacific Highway, Chatswood – a significant milestone in building a single team and culture. The team also implemented a Business Services Advisory Group to provide governance and strategic direction.
2012 priorities In 2012 the priorities for the team are to define the Business Services Operating Model, and provide underlying support structure, establish the Service Level Agreement with the business and establish Standardisation and Improvement Programs across Accounts Payable and Financial Services. Also on the agenda is the implementation of a People Program to help deliver cultural change and the people outcomes required for success. The team is focussing on establishing a centralised procurement capability for non-business critical procurement categories. Business Services will also look for opportunities to increase their offerings to provide services such as light vehicle management, property management, People & Capability administrative services and a “People� help desk for all people and payroll enquiries.
Profile:
Kathy Dennis
Kathy Dennis is the Financial Services Manager, Chatswood. Our team came together by migrating transactional and operational roles out of Group Finance, Treasury and Payroll into the Financial Services team. Our core functions include Cash Management, Credit Card Management, Financial Accounting, Payroll Accounting, Corporate cost centre management and Corporate business analysis. The main challenges I am currently working through in the role include encouraging the team to focus on a service culture not just transaction processing; assuring the team that dynamic career paths are still available
to them now they are part of the Business Services Group and keeping on top of the administration involved in managing a large team. I have enjoyed the challenge of establishing the benchmark of where we were performing and now working towards the improvement of this. I want the team to be a Centre of Excellence. If I had a magic wand.... there are a few things I would love to change but I know by having the right attitude and a good team around me I will be able to work through the items that need improvement.
Public-Private Partnership (PPP) Services Michael Schur
The Public Private Partnership (PPP) Services team of 13 is responsible for the growth and management of all services provided to PPP transactions including debt and equity, design and construction and, operations and maintenance. The team’s immediate focus is on the new Royal Adelaide Hospital Project (new RAH) the $1.85b partnership with South Australia Health and the South East Queensland Schools PPP project for Aspire Schools.
Key clients Key clients and partners of the team include the SA Health Partnership, the South Australian Government, Spotless, Hewlett Packard, the Queensland Government, Aspire Schools, Hansen Yuncken, Broad, Leighton Services and a range of key financial Institutions. 2011 achievements and highlights The team’s highlights and achievements for 2011 were largely driven by Bob Hunter, Pat O’Donnell and their teams, collaborating across all divisions of our business. This resulted in significant progress on the South East Queensland Schools PPP and new Royal Adelaide Hospital (new RAH) Projects. Both the sixth and seventh Aspire schools reached practical completion on 31 December 2011, on time and on budget. The new RAH project reached financial close in June with design progressing well to end of year. Some other highlights from 2011 include: June: Financial Close on the new RAH July: Aspire Schools – Coomera Rivers State School officially opened October: Aspire Schools - Augusta State School officially opened November: Aspire Schools - WoodLinks State School officially opened
14 | Public-Private Partnership (PPP) Services
December: Practical completion and commencement of operations achieved for Murrumba State Secondary College, Brightwater State School (new schools), BayView and Perigian Springs schools (second stages) all on time and on budget. All seven Aspire Schools are now operational under the management of Leighton Contractors’ Facilities Management business unit in the Services Division. Awards: New Royal Adelaide Hospital Project won the International Project Finance Infrastructure Award (PFI) – Best PPP Project Asia Pacific. 2012 priorities The new Royal Adelaide Hospital Project remains a key priority for 2012, particularly during the first half of the year as the team continues to bed down the foundations for the remainder of the project. Following the successful completion of the seven Aspire Schools, from the end of January/early February 2012, the focus will be on the on-going Facility Management component of the contract and the second stages of Augusta, Coomera Rivers and WoodLinks State Schools which are due to be delivered by the end of the year. 2012 will also see the continued growth of the PPP Services business with priority focus on securing the Wiri Prison and Eastern Goldfields Prison projects. Potential projects include the Northern Beaches Hospital project.
Profile:
Peter Robertson
As Project Manager, PPP Services I am based in Phillip Street, Sydney, although I currently spend most of my time in Adelaide working on the $1.85b new Royal Adelaide Hospital (new RAH) Project.
clinical requirements but the longer term ‘whole of life’ implications. Large projects are often complex in structure and design. Challenges span both technical and contractual aspects as well as with stakeholders to deliver the best possible solution for the client.
I’ve worked across a number of projects from rail tunnels to schools, in Australia and Asia and have developed broad project management and negotiation experience, in The ability to resolve issues, progress addition to my traditional skills as an engineer. contrasting views and providing a source for mediation is a significant part of my role in My current role within Finance and the project management of this Public Private Administration typically spans the Partnership (PPP). life of a project, from pre-bid to early implementation, with a particular emphasis PPP projects take a long time to get up and running. Each project requires a significant on the early negotiation and frameworks commitment of time both for the company that support the success of the project. and those involved. Many of the early This will also depend on the complexities issues, contact negotiation, pricing and bid and nuances of each project and client. submission are time intensive and can be I became involved in the new RAH Project challenging with family commitments. 18 months ago, working with the LCPL I’ve had the opportunity to work on a range executives, bankers, lawyers, facilities of projects, from rail tunnels, schools, water operators and collaborating across all areas treatment plants, defence headquarters to of Leighton Contractors to progress to hospitals, both in Australia and in Asia. Each financial close. I am now managing the full project is unique in what is being created, scope of engineering services on the 13ha which I love. The early stages of a project new RAH project, in Adelaide’s CBD. I work brings bankers, lawyers, construction with a range of consulting user Groups, as well as design teams and the Client to ensure contractors and facilities operator s together that the design not only considers the current with the client to develop the structure and
Below: Artist’s impression of the new Royal Adelaide Hospital.
financing for the whole of life. I really enjoy the challenge of working with so many passionate and dedicated professionals and what we all teach each other. I work on projects that impact peoples’ lives. Changes through technology and innovative design and construction, means we have the opportunity to embrace new and emerging trends, creating benchmarks in what we design and build and how people and communities benefit from the combined thinking that is inevitable in every project. I would like the untapped skills and experience we have in Finance and Administration team alone, to be recognised and utilised right across all Leighton contractors’ business areas. We are now capable of not only advising on PPPs but initiating, providing feasibility studies, funding, establishing consortia to bid specific projects, bidding, reaching financial close, implementing a management structure and providing the actual SPV Project Managing of projects from smaller works to the new RAH at $1.85b. I look forward to doing more in NSW – allowing me to spend more time with my wife, children, family and friends.
Risk & Review David Willows
David Willows heads a team of five who manage two areas in Risk and Review. The Review team’s responsibility is for the management and conduct of the project review program within LCPL, which comprises a review of between 22 and 26 projects and operations every six months.
The review program is part of Leighton Holdings Limited’s (LHL) governance for which there is detailed selection criteria. LHL accompany us on many of the reviews. In LCPL, every review has been nominated by either a General Manager or Executive General Manager. The team endeavours to get to each material project and at least a sample project from each division within the six month calendar and also to new projects very early in their delivery lifecycle. The emphasis is on adding value toward a better outcome through recommendations and experience. Each review is different depending on the project type, stage and complexity but common areas examined are organisation and people, risk, project plans, design, project time, procurement, engineering, quality, safety, project financial performance, contract administration, client, safety, the environment and community. The team produces a report for each review containing findings and recommendations with an executive summary going to the Managing Director, CFO, Deputy Managing Director, Executive General Managers and LHL. Individual briefings are also provided including a two monthly update to the CFO in detail.
The other part of the team, Risk, leads the pan-LCPL risk community in developing, shaping, monitoring and improving Risk Management. The team’s role is to develop and maintain Group Risk processes, systems (ARM) including vendor management, tools and techniques and set the Business Standard and policies. They also manage, facilitate and report on LCPL Group level strategic risk management. The teams represents LCPL to LHL in risk matters and provides system advice, acting as a ‘reviewer’ of Divisional Risk Management plans, procedures and practice. Risk supports and challenges our Divisions to identify and share good practice, assisting each other where required. They also encourage the Divisions by acting as independent facilitators for lesson learnt (lost tenders/failed project) and maintain the lessons learnt section in ARM. The team promotes LCPL’s participation in Risk conversations with industry partners, clients, Universities (RMIA) and Standards Australia.
Their key clients, customers and partners include LCPL (particularly the risk and Annually a summary of findings is produced to commercial elements of the business), LHL identify systemic and particular issues. and the Active Risk (ARM) vendor.
16 | Risk & Review
Profile:
Neil Rodgers
I am Group Risk Manager within the Governance, Risk and Assurance team, based in Chatswood. Our team works across all divisions within LCPL to ensure we implement the best risk management practices. I work specifically with risk managers across the Construction, I&E and Services divisions. Construction have a risk manager in a divisional role and one in each branch, I&E have a risk manager in the division and Services use their Commercial and Safety & Systems Teams to deliver risk management. This means that my role in incredibly varied – some work involves technical points, questions and guidance while with others it is more about support and development. Actually a lot of my role is really relationship management, which I find a great challenge and ultimately very rewarding. To achieve this, I need to give clear guidelines for each division. The team is working on our intranet site and Our Way documentation so that everything is in one place for people. Each division is accountable and responsible for the actual opportunities and risks submitted, but for reporting and project reviews I also pull together data and a level of analysis for the risk outputs. Where there is a skills gap within a division I will step in to ensure that we continue to deliver until the gap is closed.
2011 achievements and highlights In 2011 the team was pleased to raise their profile with key LCPL leaders, won seven local and international risk management awards and Risk Manager, Sharon Aitken, was named President of the Risk Management Institute of Australasia (RMIA). The team were able to realise the review calendar – when other OpCo’s might only do 12 or so a year and participated at the LCPL Quarterly review. Working closely with Steve Dransfield and his financial team, was a particular highlight
I am also responsible for ensuring that our risk management software, ARM, meets the current and future needs of the business. This is a challenge due to the varying divisional requirements and technical limitations but if we can work together to get it right, LCPL really will benefit. Six months ago I would of said that my biggest challenge was working out how to get the business collaborating and working as one risk function. However we’ve made some great inroads on this and I now see clear evidence of different divisions sharing ideas about how to collaborate more and work as a collective. We’ve established a working group on the future development on our software tool (ARM) with each division represented - a key requirement for success to be achieved - and after each meeting I see stronger relationships being formed. So I think my biggest challenge now is to maintain these embryonic relationships and keep encouraging the group to keep improving and working together. The most enjoyable aspect of my role is the people. I need to understand so much about the divisions I support, and the great thing about this is I meet (and quiz!) a lot of the people across this business. This is how I continually learn and have come to appreciate that the future success of the company is based on the knowledge and skill sets of the people here.
of 2011 and went a long way towards helping commercial understanding of performance. 2012 priorities Risk & Review’s priorities for 2012 include retaining their team and finding capable additions, understanding and executing the Executive Leadership Team’s requirements of the department, and raising its profile. The team will also be involved in the promotion of risk management within LCPL, and move toward risk management to become a business as usual discipline. They aim to
I also really enjoy seeing the work we do – some of the projects we undertake are amazing and I can feel the buzz in the project offices when I visit the teams. Sometimes I think that we don’t celebrate success enough. One gripe of mine is when people talk about software opposed to the actual risk process. It’s human nature to blame the tools and not the actual data we are entering into it. Poor data isn’t the softwares fault – it’s the fault of the risk team for not guiding the team, the data imputer for not putting the right information in and more importantly, the lack of a detailed review process to ensure that the risks and opportunities are fit for purpose and leading to proactive risk management. I would like to see risk getting closer to being seen as business improvement. In risk workshops and project reviews the learnings are huge but who else knows about it outside of the room and how can we leverage off it? To me a major objective of risk management, and therefore the risk manager, is to share information and demonstrate we are learning from other projects. I believe we can get to this place!
form closer relationships with the Divisions and functional areas of LCPL in Risk management. It’s also fundamental to the team that they achieve the Review program and continue to refine the output, while conducting regular ‘material’ project analysis.
Legal & Company Secretariat John Morton
The Legal team, headed by John Morton, has responsibility for the Legal and the Company Secretarial function across LCPL and its subsidiaries. The team is responsible for protecting LCPL’s legal position at all levels, which includes:
Providing the governance (policies, processes and tools) to apply to the contractual aspects of bidding for and delivering projects across LCPL’s business. This includes the development and maintenance of contractual business standards and processes and LCPL’s standard contractual arrangements. Providing day-to-day services in CRA (Commercial Risk Analysis) preparation, PMPC (Project Master Procurement Contract) preparation and other contractual services and support to LCPL projects. Managing and instructing on all significant litigation within the LCPL Group. Administering all statutory aspects of approximately 80 LCPL companies. Working closely with LHL on legal strategic direction. Working closely with LHL to develop complementary systems, e.g. Blueprint J ohn is LCPL’s Probity and Privacy Officer. John is also a member of LCPL’s Reportable Conduct Group and the Ethics and Governance Board Sub-Committee.
18 | Legal & Company Secretary
Key clients The key clients for the Legal team are the operating areas within LCPL’s Business Units, in particular the tender teams pursuing projects and the project teams delivering projects. Legal also deals with the full ambit of all legal issues affecting any business of our size and not necessarily directly relating to projects. The team is the interface for LCPL with Leighton Holdings Limited in respect of all legal, governance and company secretarial issues and initiatives. 2011 achievements and highlights In 2011 the team grew to 27 with the addition and integration of seven new lawyers some of whom were placed in LCPL business units but with the majority of the in-house lawyers under one management. The team achieved the lowest number of unsettled litigation matters in six years and continued to provide robust governance processes across the Company Secretarial function In 2011 the team also continued to review and update LCPL’s tendering processes including dealing with major amendments to carbon/greenhouse and PPSA legislation. There was also an ongoing commitment to the development of relationships with external legal service providers.
Profile:
Fiona Leong
While the Legal & Contracts team primarily assists business units with contract review on specific projects, the Corporate Legal team primarily focuses on legal matters that Since my admission as a solicitor in 2002, affect the LCPL Group as whole, including I have worked in private practice in top tier governance and policy matters, management firms including Clayton Utz and Mallesons, of all litigation, arranging contract and gaining experience in general commercial, document execution by LCPL directors and corporate and private M&A transactions advice to all Business Units including HR and and infrastructure consortium work. I also Group IT. The Corporate Legal team works have experience as a construction litigator closely with LCPL Executive Leadership Team and working in in-house roles through client and LHL Legal. secondments, including at Barclay Mowlem Currently, a key focus for the Legal team is (now Laing O’Rourke). the introduction of the Personal Properties The Legal team at LCPL provides advice Securities Act. PPSA came into effect on 30 and assistance in relation to a wide range January 2012 and as part of my role, I have of legal issues that affect LCPL and LCPL been working closely with LHL and external Group companies. lawyers to assess the impact of PPSA on
LCPL’s business and establish processes, procedures and systems for management of PPSA issues and registrations.
2012 Priorities
PPS Act into tendering process, business units, services group and across company education. The team will introduce a litigation report process and review and correct the Dunn and Bradstreet profile.
I joined LCPL in December 2011 as part of the Corporate Legal team as Legal Counsel in the Chatswood corporate head office.
The team’s priorities for 2012 include the integration and development of the team as part of Group Services. There will be a focus on the development and implementation of updated CRA forms and
of rebuilt PCR processes. The team is working on identification of areas of project delivery support as well as identification of business unit training needs. Also during 2012, the team aims to implement the Oracle Contract Creation software and the
Given the current uncertainty in relation to the interpretation and application of PPSA and with no clear market practice yet, the challenge for us is establishing business standards, contract clauses, processes and procedures that will best protect LCPL’s assets in circumstances where expert views and advice are often confusing, conflicting and constantly changing. I am really enjoying working with a great team of lawyers* and wouldn’t change any aspect of my role because it’s perfect!** *The team told me to say that. **I am still in my probation period.
Company Secretariat The Company Secretariat is located in the Corporate office in Sydney and is made up of a team of two.
Company and other searches including police checks, assisting with audit and litigation queries Governance related training
The secretariat is responsible for managing:
Reporting
Compliance and Governance – Australia and overseas (NZ, PNG, Singapore, Bermuda)
Blueprint (electronic corporate register system) administration
ASIC lodgment including accounts and class order management Meetings & Minutes Board administration Statutory Registers Incorporation, registration and deregistration Document execution Business Support Retrieving and archiving documents for various stakeholders Assisting in tender preparation and due diligence Intellectual Property (Trademarks, Patents) and building licenses The maintenance of Property and Business Name Registers Advice on legal structures and issue organisation charts/diagrams
20 | Legal & Company Secretary
D&O insurance reporting
2012 priorities In 2012 Company Secretariat aims to complete the upload of useful company documents to Blueprint. They will implement a S127(1) Register (documents signed without seal) and explore further usage of Blueprint to enhance access to information by stakeholders.
They will co-ordinate and prepare LCPL board packs, develop and implement a system of tracking down minutes/ Interaction with State and Federal resolutions and corresponding attachments authorities (ASIC, Dept of Fair Trading, while working closely with Finance to align IP Australia etc) data and templates to maximize support for All corporate enquiries from project, admin, LHL year end reporting. finance staff and management including During the year the team will identify JV/Alliance partners and miscellaneous training needs and assist in the external organisations familiarisation of newly-appointed company 2011 achievements / highlights secretaries and continue to improve record keeping and archiving. During 2011 Company Secretariat assisted in the acquisition of Delron Cleaning, financial During 2012 it will be business as usual in close of the SA Health project and the sale the administration of all statutory aspects of of the HWE business to BHP. The secretariat approximately 80 companies in the LCPL successfully incorporated four new entities group. and expedited statutory reporting of executive management changes in late December. Departmental reporting
2011 also saw the continuation of the roll out of Blueprint for the Legal, Finance and Administration teams and the search for improvements in record keeping and archiving processes. The Secretariat was proud to meet all deadlines and conformed with all statutory requirements throughout the year.
Pre Contracts Chris Chwee
The Pre Contracts team is responsible for the development and maintenance of the work winning process within LCPL. This includes the Bid /No Bid and EOI/Tender management process. Pre Contracts is responsible for the governance and tender management of contracts across LCPL. The team of four people is also responsible for the training and development of the Work Winning System and CATS (Computer Aided Tendering System) for estimating. The above also includes: Approvals for LHL - Liaise with LHL in regards to changes in governance and approvals for LCPL tenders. - Gatekeepers for all submissions over $500m to ensure quality and completeness of information, ensuring all financial and liability aspects have been approved.
22 | Pre Contracts
Governance
Work Winning System (WWS)
- Development and maintenance of the work winning processes
- Upkeep of WWS system
- Interim and final tender reviews of all tender submissions - Seek approvals for departures to LCPL commercial risk and LHL work procurement guidelines.
- Analysis of data and weekly reporting regarding EOI’s and Tenders - Training and advice regarding the use of systems, data quality and procedures. Computer Aided Tendering (CATS)
- Approvals and recommendations for all LCPL submissions
- Upkeep of CATS system for LCPL
Bid / No Bid-process
Key Clients / Customers / Partners:
- Strategic look at prospects and EOI’s ensuring best approach to tendering, analysis of client profile, suitability, risks, funding and win probability
LCPL Divisions
- Templates, guidance and governance to ensure only contracts which are aligned with current LCPL business goals are tendered. - Assist in ensuring value for money in tendered projects and quality submissions New Governance and Procedures - Integration of new LHL risk assessment requirements into Bid / No-bid process.
- Training and advice regarding the use of the system
LCPL Business Units LHL regarding Pre-Contracts approvals and governance. 2011 Achievements In 2011 the team improved the tender management governance such as tender preparation, reviews and risk assessment for major tenders. The team also managed the implementation of proactive procedures with LHL approval processes, ensuring the timely submission of applications and in the work procurement guideline (WPG) approvals.
Profile:
Chris Chwee
As General Manager for Pre Contracts, Chris is responsible for the leadership and coordination for precontract activities within Leighton Contractors Pty Limited (LCPL)and interaction between LCPL and Leighton Holdings Limited. Precontracts refer to the work procurement activities associated with prospect development, EOI and tender. Chris leads an experienced team of four in the Pre Contracts area with Bob Trott, David Falco, Wesley Wong, and Kerry Slater contributing to the Pre Contracts functions and Cheryl Heyes providing shared EA support.
Together with the implementation of a Bid / No-Bid process, new auditing controls of WWS ensuring quality of data entered were introduced. Workshops were conducted in pre contracts and its processes for key work winning processes for each division and training provided in WWS and CATS. 2012 Priorities During 2012 the team will be working on the development of the new architecture for Work Winning and the roll out of training in Our Way, standardising monthly / quarterly tender reports and concentrating on the integration of new LHL risk assessment requirements into Bid / No-bid process. They will endeavour to meet the challenges of how changes to the LCPL organisation can affect the progress on the implementation of new process and governance to Pre Contracts and manage the implementation of strategic bidding.
Chris has worked in LCPL for 28 years and is experienced in various roles and disciplines within the company. Chris has been associated with most of the major civil engineering projects in Queensland including the Pacific Motorway, South- East Transit Busway, Inner City Bypass and the Clem Jones Tunnel. He also led the LCPL bid for Airport Link. He is very familiar with tender and approval processes and risk assessment associated with large scale projects.
Chris enjoys working and supporting the various bid teams and business units in their work winning activities through open and regular dialogue. With his precontracts team, he will continue to foster and promote development and implementation of good processes and systems, governance and future planning of precontracts activities.