Industrial Safety News - April 2018

SLUG

APRIL 2018

Tough line on asbestos control

Including

Toxic workplaces Compliance versus enforcement Workplace drug tests INFRASTRUCTUREBUILD.COM YEARBOOK 2018

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RESPONSIBLE CARE NZ, YOUR ONE-STOP WORKPLACE CHEMICAL SAFETY ADVISOR

Safe answers to safety questions you have always wanted to ask The National Safety Show introduces an advisory lounge where visitors can ask questions and get confidential advice about compliance and remedies from WorkSafe and other government agencies

SAFETY NEWS

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he award-winning National Safety Show is the leading safety show in New Zealand for good reason.

It offers the perfect opportunity for all businesses across New Zealand to discover the latest products and innovative solutions, engage with leading industry suppliers and to grow their business through valuable insights and know how.

For years it has provided a powerful face-to-face platform for national and international exhibiting suppliers to showcase their products and services and meet industry decision-makers among the thousands of visitors.

Its role today goes far beyond this.

The provision of seminars covering the gamut of workplace safety was the beginning of reinforcing, in a practical way, a culture of safety in the workplace.

They proved so popular XPO Exhibitions, the company behind the National Safety Show, began casting about for new ways to enhance the visitor experience at the show.

“We see our role as providing the platform and the information you need to help you understand your workplace health and safety responsibilities, and ways to reduce health and safety risks in your business” says XPO Exhibi-

tions Event Director Tony Waite.

“Following the highly successful and award-winning 2017 event, we conducted extensive visitor and exhibitor research in which we identified the need for greater engagement with local and central government agencies.”

This will be achieved at this year’s show with the introduction of The National Safety Show Advisory Lounge, a place where visitors can grab a coffee and speak to representatives of WorkSafe, Sitesafe, EMA, ACC and NZISM in an informal and confidential

manner.

“WorkSafe Zealand is pleased to be a part of the new initiative,” says the agency’s Construction Sector lead Craig Sengelow.

“We think it’s a great opportunity for these agencies to come together to support New Zealand workplaces to be healthy and safe.”

To generate further audience integration and relevant conversation, partners will provide regular informal presentations allowing visitors to get involved and ask questions or discuss the topic

Who will benefit most from the National Safety Show confidential advisory lounge?

• Businesses of any size whose owners and managers who are not quite sure of the impact of the Act on their business or who may need comfort from knowing that if they took health and safety seriously before the Act the tweaks needed may be minimal.

• Small business owners and managers who understand the significance of a Health & Safety plan and might have begun one or have one that is not detailed enough but are unsure of what to do next to comply.

• Larger business health and safety representatives who may have specific questions about how to improve what they already have in place.

Typical questions that may be asked in confidence may relate understanding the Health & Safety at Work Act and how to equip themselves and employees to create a compliant and safer workplace. Or identifying existing risk and checking H&S policies with an expert to make sure they have all the bases covered.

The idea is to take the Health & Safety culture among New Zealand business, both large and small, to the next level.

“It’s about being better prepared for any eventuality that may arise and handle it in the appropriate way - not the ambulance at the foot of the cliff,” says Tony Waite.

The advisory lounge idea evolved from discussions with XPO’s Exhibition Management team and WorkSafe on how best to overcome visitor reluctance to approach government agencies with issues relating to health and safety in their workplaces.

“We all share the same vision that everyone who goes to work comes home healthy and safe.

The Advisory Lounge will be a great place for businesses to talk through any concerns and ask questions,” says WorkSafe’s Chris Green.

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The National Safety Show

Special advisory lounge for confidential compliance advice from government agencies at largest trade event for the health and safety industry back in Auckland July 3-4

Ethical, moral and legal duties

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Asbestos Regulations

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An Occupational Health and Safety Management System helps companies meet due diligence requirements

The new requirements in the Asbestos Regulations around managing the risks of asbestos are now in full force

How to create a great place to work

In a very competitive market the key thing that makes companies stand out is their people and their culture, says Workplace Solutions chief executive Tony McCabe

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Symptoms of a toxic workplace and how to deal with them

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It is all matter of avoiding eight behaviours including bullying, bureaucracy, gossip, stress and unethical behaviour

Dangers of distracted walking

Graphic showing the dangers of being a pedtextrian and gives advice for those addicts who just cannot help themselves

Half day training for SME in workplace chemical safety and compliance

Responsible Care is a global voluntary initiative by the chemical industry. In New Zealand the group offers subsidised training targeting time-poor SMEs. $120 for a half day session

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Workplace drug and alcohol testing

How to lawfully screen for the longstanding issues of drug and alcohol use in the workplace

Managing Editor Geoff Picken 021 250 7559 geoff@infrastructurebuild.com

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Publisher Mike Bishara 027 564 7779 mike@infrastructurebuild.com

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Natural street light from luminous trees

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Lace-up safety boots no good for welders

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Matamata contractor gets smart with Komatsu

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What is it going to take to bring peace to the RMA?

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Asset management or the lack thereof

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The vulnerability of New Zealand’s water systems

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Collaboration with government important for local councils

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Long-term Komatsu customer Stephen McPherson has made a big investment in new intelligent Machine Control technology and is quickly getting a payback on his investment

Resource Reform NZ has been formed to galvanise support to progress fundamental, wide ranging reform of the Resource Management Act with a fit-for-purpose modern resource management system

What was most telling in the $1.6 billion leaky hospital saga was the almost complete denial by politicians of any knowledge of the issue despite evidence which indicates that the Ministry of Health and presumably the minister were fully advised on a regular basis of the problem. They could turn to Local Government for advice on asset management

Three waters infrastructure (drinking, storm and wastewater) resilience and provision of three waters’ services is utterly reliant on other systems also being resilient

Local Government New Zealand will lead a number of key projects under its core policy priorities during the next year -- Water 2050, Climate Change, Housing 2030 and Revitalising Democracy: going local

Design & Online Michael Curreen 021 029 20234 michael@infrastructurebuild.com

Published by Media Solutions Ltd PO Box 503, Whangaparaoa Auckland 0943 09 428 7456

1000 apartments, mall, offices and cultural centre with a mix of green roofs and mini parks.

NZ property market consolidates on recent gains

Colliers research shows steady gains across residential and commercial property values amid a tight rental market

Generation X and integration Albany community development appeals to buyers with onsite amenities

Marriage of convenience for on-site safety

Acuite and PlanGrid get together to provide 360 degree health checks in real time for the construction sector

Urban development projects around the globe

• EuropaCity is a cultural mixed-use, pedestrianised development 30 minutes outside of Paris, combining urbanisation and the sustainability and liveability of countryside living • Shanghai China, Todtown is a $US1.5 billion ($1.88 billion) dollar project designed to integrate the

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• Fishermans Bend covers 480 hectares of former industrial land less than 7km from the Melbourne CBD with 121ha of open space, a zero carbon footprint and 70% recycling.

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• Shaking off the “wasteland” tag, Melbourne’s Docklands has been transformed into a hub for leisure, dining, retailing and both residential and commercial real estate

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• Covering 22-hectares along Sydney’s harbour, the $8 billion Barangaroo waterfront precinct has a major focus on sustainability and the creation of green space.

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rebuilding the 16-acre site where the Twin Towers once stood.

• Newhall Ranch development is the largest and one of the most environmentally sustainable masterplanned communities in the US with 21,500 affordable residential units by 2035.

• Milan’s CityLife will be the largest car-free area in Europe, providing 168,000 sqm of landscaped parkland dedicated to pedestrians and bicycles with space for both office and retail buildings with commercial fronts on the piazza.

• By 2025, 3000 new homes will be created within London’s Elephant and Castle, providing a mix of low-rise apartment blocks, a luxury tower block and townhouses, , a central park and a university campus.

• 45km east of Cairo in the Egyptian desert, a 270 square mile, A$60 billion project will provide housing for up to 5 million people, with malls, energy farms and an airport.

• Hudson Yards New York will mix green space with office towers, more than 100 shops, 4000 residences, a public school and a luxury hotel to complete the $US25 billion project.

• Self-named 8,000 year old river city on an 8.7 million square metrewide former military zone, New City Istanbul plans to build 50,000 residences across seven towers.

• Brisbane Showgrounds is a $2.9 billion urban renewal project for 15,000 people in residential buildings surrounded by commercial offices and retail precincts.

• Ever since the events of 9/11, the New York City council have been

Content Partners Dave Cull Local Government New Zealand

Barry Dyer Responsible Care

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Ritchie Bower HSE NZ & Asbestos Environmental Consultants Page 6

Page 34

Pages 8 & 19

Hamish Glenn Infrastructure New Zealand

Tony McCabe AJM Workplace Solutions

Alan McMahon Colliers

John Pfahlert Water New Zealand

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Page 9

Page 36

Page 32

Graeme Tanner Duncan Cotterill

Joseph Williams Duncan Cotterill

Mike Bishara Media Solutions

Michael Curreen Media Solutions

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Publisher

Digital Content

Leigh Auton Auton & Associates

Original material published online and in this magazine is copyright, but may be reproduced providing permission is obtained from the editor and acknowledgement given to Media Solutions.

Opinions expressed are those of the authors and may not necessarily be those of Media Solutions Ltd. ISSN 2324-3163 (Print) ISSN 2324-3171 (Online)

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Ethical, moral and legal duties An Occupational Health and Safety Management System helps companies meet due diligence requirements under the Health and Safety at Work Act 2015, says Ritchie Bower

SAFETY NEWS

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rrespective of the mandated purpose of an Occupational Health and Safety Management System (OHSMS), its effectiveness will vary depending on stakeholders’ participation and investment in the system, and the priority it receives within the organisation.

New Zealand’s Health and Safety at Work Act 2015 (HSWA) “places a positive duty on directors, as officers of a PCBU (Persons Conducting a Business or Undertaking), to exercise due diligence to ensure that the organisation complies with its health and safety duties and obligations.”

From a moral, legal and ethical perspective, the primary purpose of an OHSMS should be to provide a safe and healthy workplace and create a structured, consistent and documented approach to managing health and safety.

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The International Labour Organization says that “OSHMS is a ‘generic’ method that can be tailored to the management of hazards specific to a given industry or process, particularly in high-risk industries where the implementation of preventive and protective measures requires a comprehensive and organized evaluation of risks and monitoring of performance of complex control systems on a continuous basis.”

It is increasingly common for legislation to require PCBUs, particularly in high-risk industries, to implement an OHSMS. WorkSafe NZ requires Class A Asbestos Removal Specialists to hold a JAS/ANZ (Joint Accreditation System of Australia and New Zealand) accredited OHSMS audited to AS/NZS4801:2001 standard.

The purpose of the OHSMS in

Ritchie Bower is the Chief Executive of HSE New Zealand and Asbestos Environmental Consultants, specialists in the development, implementation, review and audit of OHSMS in New Zealand and internationally. HSE New Zealand provides a variety of management systems certification to ISO9001, 18001, 14001 and AS/NZS4801 worldwide

by UKAS, one of the world’s largest accreditation bodies

this instance is to ensure high-risk work is suitably controlled and that performance criteria are met.

“Working with asbestos should be performed in a manner that is at least as safe and effective as the practices described in the WorkSafe New Zealand Approved Code of Practice (ACOP) - Management and Removal of Asbestos,” according to JAS/ANZ The Civil Aviation Authority of New Zealand and Maritime New Zealand (MNZ), the lead agencies in their particular specialist areas, have industry-specific OHSMS. MNZ, for example, introduced

OHSMS to be “in line with a global move to put ongoing safety measures in place to prevent maritime accidents and place the responsibility of this on vessel owners and operators.”

The agency requires NZ-flagged ships which meet certain criteria to comply with Maritime Rule Part 21 which incorporates the requirements of the International Safety Management Code, the purpose of which is “to provide an international standard for the safe management and operation of ships and for pollution prevention.”

Asbestos regarded as number one workplace killer

SAFETY NEWS

Businesses must now take greater responsibility for managing asbestos in the workplace

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n 4 April, the two-year window for industry, the regulator and training partners to implement changes created by the Health and Safety (Asbestos) Regulations 2016 expired.

This means that the requirements in the Asbestos Regulations around managing the risks of asbestos are in full force.

This includes the requirement for asbestos management plans and greater competency requirements on the asbestos removal industry.

Because of its incredible range of properties, Asbestos was added into numerous building products from the 1950s to the 1980s. It was later discovered to be a carcinogen when the fibres get lodged in human lungs.

To help reduce worker exposure to this carcinogen, the government introduced the new Health and Safety (Asbestos) Regulations in 2016.

These regulations were designed to raise the bar for the asbestos removal industry by bringing New Zealand’s approach to managing asbestos in the

Comprehensive coverage and advice Each guide is a one-stop information resource that covers: • the risk of working with or near asbestos • the difference between friable and non-friable asbestos • where asbestos is likely to be found in New Zealand homes and other buildings • the key ways to protect yourself when working with asbestos • how to dispose of asbestos waste • workers’ rights and responsibilities.

Check out the guides workplace and any associated removal into line with Australia and the UK. WorkSafe NZ has produced four quick guides for painters, electri-

cians, plumbers and painters to explain responsibilities and advise on how to manage the risks when working with or near asbestos.

The guides are for designed

for tradespeople who work for themselves or have other people (including apprentices) working for them and offer sound advice across all trades.

SAFETYNEWS.CO.NZ

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Compliance vs Enforcement Workplace health and safety conferences set out to address the many issues required from a proactive approach to safely managing workplace hazards, including chemicals, says Barry Dyer, chief executive of Responsible Care NZ

SAFETY NEWS

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hemical safety management continues to be poor.

There have been frequent references in conferences to ‘new’ hazardous substances regulations. They are, in fact, a re-packaged Hazardous Substances and New Organisms (HSNO) equivalent; albeit with several significant changes.

Throughout the 15-year existence of the much-maligned HSNO regulations, it was proactively supported almost exclusively by chemical suppliers.

Excuses for not achieving the mandated performance standards ranged from “HSNO! What’s that?” and “I’ll get to it when I’m not so busy” to the perennial favourite “nobody told me what to do and how to do it.”

This worrying trend, evident not only in the nation’s workplaces, but increasingly throughout our society, is the expectation that “the government” must fix it.

Solutions range from more prescriptive (and increasingly ineffective) regulation, ineffectual enforcement and a lack of knowledge with the view that solutions can only be achieved by ‘someone else’.

Fixation with national road toll is instructive

Widespread media coverage highlights the personal tragedies and the views of pressure groups and politicians calling for lower speed limits, fewer motorways, upgraded rural roads and better driver training.

A massive budget enables saturation advertising and policing measures. There is a wealth of information available on the factors involved in this almost $5 billion cost to society, yet little publicity about key issues.

The total of 380 road deaths in 2017 is appalling – but suggestions flooding talkback radio and social media for reducing the unacceptable toll do not engender sound policy-making by populist politicians.

Look to the unfashionable real causes

Reportedly, at least 100 (26.3 percent) of the 2017 victims were not wearing a seat belt. Police note continuing illegal mobile phone usage while driving.

In 2016, reportedly 215 victims (65.7 percent) of the 327 fatal crashes that year were impaired by drugs and/or alcohol; how

many were fleeing police?

Certainly, many died as a result of not driving responsibly, according to their skill and the conditions -- weather, road, speed limits, etc.

But drivers actually making mistakes by not responding appropriately to their circumstances clearly number significantly less than 380.

Trucks feature prominently in the road toll, yet last year the effective and dedicated police road transport enforcement arm, the Commercial Vehicle Safety Team, was rescued only by a last-minute, 12-month funding reprieve.

The media highlights tourists, police chasing criminals and the infamous ‘killer roads’ as root causes. Why are we demonizing tourist drivers who in 2017 were reportedly responsible for around six percent of fatal crashes?

Credibility is difficult to achieve and harder to sustain Contrary to the sensational reporting, the road toll is trending down -- from 421 a few years ago (10 deaths per 100,000 population to 7 deaths per 100,000 population in 2017) despite more people in safer cars, on improving roads,

If 380 road deaths is horrific, how about the much-publicised 600-900 serious injuries each year due to exposure to workplace chemicals.

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which are policed.

Reducing the road toll further requires a pragmatic, integrated response reflecting existing research and years of attitude adjustment for many Kiwi drivers.

Perhaps the strategy should be simply all-out enforcement and religiously communicating the results to the community, the majority of whom are not the offenders.

Relatively fast and punitive responses include cameras, well-posted roadside radar, roving police patrols in areas where offending is prevalent; courts prepared to remove vehicles from persistent offenders; increased financial penalties for simple non-compliance (not wearing seat belts or using mobile phones); and severe penalties for trying to evade police.

Longer term, enhanced driver education, installation of lane dividers and specifying safer vehicles deserve consideration.

Serious injuries from workplace chemicals

Individuals do die from the effect of workplace chemicals such as solvents and hazardous substances, such as silica and

Advice for authorities managing workplace chemicals

Safeguarding workers means accepting the premise that indi-

viduals will make mistakes – not to be confused with stupidity.

The outcome of that mistake can often be minimised by an effective response, thanks to competent workers who are appropriately supervised, using equipment fit for purpose and monitored by knowledgeable authorities.

Short term, authorities will need to minimise administration to maximize the deployment of competent enforcement agents, targeting the worst offenders.

Alert authorities should know their local trouble spots and offenders.

They need to engage with industry sectors to deliver local workshops at convenient times to enable participation, particularly

by SMEs, to explain in plain language, compliance requirements and how to achieve them.

Replace the ‘Zero Harm’ approach; people will make mistakes.

Encourage workers to identify safer work practices reflecting

industry best practice.

Importantly, do not treat all industry sectors as being equally poor performers – use industry associations to share the task of educating and encouraging competent workers to safely carry out their tasks in safer workplaces.

Imagine what could be done with a budget like road safety Thousands of inspectors sharing their expertise with clients promoting safer work practices learned through partnership with proactive industry associations, with perhaps a dedicated ‘Flying Squad’ targeting serial offenders.

Arguably, the opportunity was lost (remember the Worm Farm fiasco?) to mandate at least one qualified workplace compliance advisor in every business as the ‘go to’ person for best practice chemical safety advice and emergency management.

Too ambitious? Being proactive, we start by identifying the few chemicals of real concern and ensure they are safely managed

“We start by identifying the few chemicals of real concern and ensure they are safely managed with all the necessary support from available resources”

with all the necessary support from available resources.

Chemical suppliers are ‘impatient optimists’. We know we can all do better, starting with accepting personal responsibility for our actions.

Barry Dyer is the chief executive of Responsible Care NZ which provides practical products and services to enable compliance with New Zealand’s world class chemical management regime.

Talk to them today about your compliance requirements.

Phone: +64 4 499 4311 Email: info@responsiblecarenz.com Website: www.responsiblecarenz.com

THE NATIONAL SAFETY SHOW 4-5 July 2018 ASB Showgrounds, Auckland

$512m

SELLING FAST - BOOK NOW New Zealand’s leading trade show for the Health and Safety Industry

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Educate your customers on industry best practice.

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Interested in exhibiting?

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Sandi Mulder, Exhibition Manager sandi@xpo.co.nz 09 976 8355 / 027 465 5567

www.safetyshow.co.nz

Image compliments of Instrumatics, Stand 151 Sponsored by Supported by

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SAFETY NEWS

asbestos.

However, an autopsy is rare so causes and frequency remain difficult to substantiate.

Employing more casual workers increases the likelihood of harm to often poorly trained and equipped and frequently unsupervised individuals.

Even with 200+ front line inspections, WorkSafe NZ cannot possibly educate, support and police the estimated 130,000 workplaces captured by the Hazardous Substances obligations, let alone the 550,000 total workplaces country wide.

Should we therefore demand a similar strategy to that proposed for dealing with the road toll? After all, the serious injuries caused by workplace chemical mismanagement is more than double than of the road toll.

SAFETY NEWS

The Great Place to Work model

How to create a great place to work Companies operate in a very competitive market and the key thing that makes them stand out is their people and their culture, says Workplace Solutions Chief Executive Tony McCabe

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The model is simple, yet strategic, easily understood and more importantly aligns with the values of most companies. From my experience, people seem to be able to relate to the model as it comprises all the foundations of a great organisation.

Leaders need to genuinely value their people. Companies must constantly evolve, innovative and rely on their people. A company cannot succeed and grow without attracting and retaining great people.

Many companies proclaim that “people are our greatest asset.”

While it is true that people are what makes or breaks a company, the statement describes “our people” in financial terms and implies that this expression was nothing more than lip service.

The Model (below) has five pillars, credibility, respect and fairness (all about building trust in the workplace), and pride and camaraderie.

Trust

The key driver of a great workplace culture is leadership

12 characteristics of a great place to work:

What is Engagement

The usual definition of Employee Engagement is that employees provide “discretionary effort” to their organisation. I like the more colloquial definition of “Employees giving a Bugger” meaning that they care about the quality of their work, the safety of themselves and their mates, and they care about the organisation. If they give a bugger (due to good leadership and trust) they will do a good job, follow safety rules and do what is best for the employer.

Engagement surveys

Most employee surveys are derived from a theory of ‘employee engagement’. This assumption is then converted into a ‘real world’ practice via development of a set of employee survey questions designed to measure a workforce against that assumptive engagement theory.

The Trust Index goes the extra step of testing if the results of multiple client projects indicate any link with organisational performance – does this survey predict good business outcomes?

In many cases good quality surveys (built on good theory) will at least in part predict positive business outcomes or otherwise depending on the scores against the survey.

However, to optimise how well the survey predicts outcomes one should not start with a theory but in fact work backwards looking at what is common in terms of workforce management across organisations that perform well thus not relying solely on an assumptive engagement theory but empirically deriving the factors that most link to positive business outcomes.

This then is the fundamental difference between the Great Place

to Work survey and many other offerings. The survey is based on extensive empirical findings as opposed to theory.

Trust Index© Assessment & Employee Survey

Great Place to Work® Institute’s Trust Index© Assessment and employee survey is the starting point for organisations invested in building a better workplace.

Great Place to Work analysts precisely measure the underlying level of trust within the organisation, while making targeted recommendations on how to improve your workplace.

Great Place to Work helps tie Trust Index metrics to your organisation’s Key Performance Indicators (KPIs) so that organisations can understand the relationship between their business goals and your employees’ workplace experiences.

This helps increase management accountability to these goals. They provide extensive benchmarking against the culture and performance of best companies nationally and internationally within and across comparable industries and organisational profiles.

The assessments provide actionable data that are simple and easy to understand. Consultants coach leaders to help them focus on high-impact areas for change and provide Best Practices from their best company’s research database.

New approach to workplace assessment

The current desire to assess the workplace culture extends a company’s drive for industry excellence and forms the basis for a new approach to workplace assessment, improvement and recognition.

The intent is twofold; to adopt the five dimensions of the Great Place to Work model to drive how the workplace is managed and to utilise the assessment services of Great Place to Work to determine the current climate, strengths and challenges, and where improvements, if required, might need to be made.

Great Place to Work looks

2. Honest leadership.

3. Provides “flexible” growth for our people. As an employee of a company, you should have the ability to change career paths if you’ve proven you’re a dependable, hard-working and passionate person.

4. A culture of collaboration. Collaboration creates better work, better results and better culture.

5. As little politics as possible. While politics are always going to happen in a work environment, great companies have very little of it and work hard to stomp it out when it creeps up.

6. Promotes meritocracy. Simply put, if you show that you are going to do great work, your career will grow accordingly.

7. Open communication. Great places to work are open about how the company is performing.

8. Craves honest feedback from it’s our people.

9. A fun atmosphere. I’ve always felt that if people are going to spend most of their waking week at the office, it should be a fun environment. When people are having fun, they work together better, and they produce better work.

10. Filled with passionate people. Companies that only look at resumes and experience when hiring are far less successful (IMHO) than ones that hire people that are passionate about their work and the industry. I’ll hire passion over experience any day.

11. Approachable leadership. The more people feel open to talking to their leadership, the more problems will get solved and the more job satisfaction people will have.

12. A great environment. A fun, open, energetic and creative environment can make a big difference in the overall atmosphere of a company

at middle and upper management and overall organisational leadership. The findings expose the strengths and challenges at all levels and help organisations identify what if any intervention is required across the business regardless of the organisational role and position.

“When I was General ManagerPeople with Fulton Hogan, I was able to successfully introduce the Great Place to Work Trust Index© Assessment & Employee Survey survey across New Zealand and Australia. The survey has also been adopted by a number of large New Zealand companies and is also used on the Transmission Gully Project in Wellington, says McCabe.

Tony McCabe, CFHRINZ,is a specialist HR and ER Consultant with Workplace Solutions. He is a director with SITESAFE and a previous Member of the Civil Trades Board.

Call 027 292 8357 or email workplace. solutions@outlook.com http://www.greatplacetowork.com.au SAFETYNEWS.CO.NZ

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SAFETY NEWS

behaviour. The behaviour of those in positions of influence makes or breaks a culture. Everything that a Leader does (either good or bad) impacts on that culture.

The key trait or competency is trust. Employees must be able to trust their leaders and where they are taking the organisation. Without trust you have nothing. High trust means high engagement.

1. A clear vision and identity. Our people want to know where the company is pointed, what the company believes in and what everyone is working toward.

SAFETY NEWS

The ins and outs of drug and alcohol testing in the workplace Drug and alcohol use by employees has been a long-standing issue for workplaces in New Zealand, as has the question of how to lawfully screen for drug and alcohol use in the workplace, Graeme Tanner and Joseph Williams note

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nder the Health and Safety at Work Act 2015, employers’ obligations in relation to minimising or eliminating health and safety risks naturally extend to minimising the risk of impairment from drugs and alcohol.

This is especially so in safety-sensitive industries.

While drug and alcohol testing can be an effective measure to minimise or eliminate this particular risk, employers need to be conscious of the inherent invasiveness of any such process and the privacy implications of workplace screening.

These elements bring with them a myriad of legal issues that, if not appropriately borne in mind, can result in claims of unjustified disadvantage and/or dismissal by affected employees.

Getting your documents right The starting point for any drug and alcohol screening in the workplace is ensuring that the relevant workplace documents

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allow for testing of workers.

In particular, an effective drug and alcohol policy is key to ensuring that drug and alcohol testing can be lawfully carried out in a workplace.

As a general rule, a good drug and alcohol policy should: • outline the circumstances in which testing can occur in the workplace • the means of testing applied (be it saliva or urine testing) • the types of substances being tested for • the consequences of returning a non-negative test (or refusing to submit to a test without reasonable cause) • and any support that might be available.

While employers do have the right to introduce or amend drug and alcohol policies from time to time following consultation, it is also important to ensure that any policy is consistent with the terms of any prevailing employment agreement.

Oftentimes relevant employ-

ment agreements will be silent on the issue of drugs and alcohol but instead contain a generic provision requiring employees to abide by any reasonable policies that may be adopted or amended from time to time.

While this can certainly extend to the introduction of drug and alcohol policies, employers will at all times need to ensure such policies are reasonable, taking into account the particular circumstances of each specific workplace.

When implementing such a policy, employers must also consult with affected employees prior to its implementation.

When can you test?

While drug and alcohol testing in the workplace will always need to be carried out in accordance with any prevailing policy and employment agreement, as touched on, all screening also needs to balance the overarching requirements of reasonableness.

Pre-employment screening

Pre-employment drug screening is a practice that is widely used in a number of industries and it’s clear that, when used appropriately, pre-employment drug screening can be a useful tool for employers, particularly in safety sensitive industries.

With that said, if pre-employment screening is not widespread in an industry, employers should also be mindful of managing ‘candidate care’ during employment application processes.

From a legal standpoint, while employers certainly need to be alive to prospective employees’ rights to privacy and the inherently invasive nature of any form of drug testing, pre-employment screening is reasonably straight forward.

Typically, an offer of employment is expressly conditional on the return of a negative test and it is made clear that the employment relationship will not commence until after that time.

If a prospective employee then

Reasonable cause testing

If an employment relationship has commenced, the circumstances in which drug and alcohol testing can be lawfully conducted are limited.

One commonly used form of testing is where the employer has reasonable cause to believe that an employee is at risk of impairment due to the consumption of drugs and/or alcohol.

If an employer is going to carry out reasonable cause testing, consideration should be given to what reasonable cause indicators might look like.

Generally these will be expressed in a non-exhaustive list of reasonable cause indicators such as excessive lateness, odour of alcohol, violent or erratic behaviour, bloodshot eyes, or impaired motor skills.

Post-incident testing

Drug and alcohol testing can also be reasonable if it is carried out following an incident, accident or near miss in the workplace.

This is particularly so when an employer has reason to believe that an accident or incident in the workplace may have been as a result of impairment due to drugs and/or alcohol.

As with all workplace drug and alcohol screening, “reasonable cause” and “post-incident” testing must be carried out in accordance with the relevant workplace policies.

sonable (i.e. random testing) can be justified with reference to the overriding obligations of health and safety.

With that said, employers need to be conscious that random ‘suspicion-less’ testing can only be carried out in genuinely safety sensitive roles, assuming of course that this is provided for in the policy.

It is also important to note that when ‘random testing’ is carried out, it must be truly random.

Even if employees are in safety sensitive roles, random testing does not allow for employers to test employees based on a ‘hunch’ or mere suspicion.

Many employers fall down by calling what is effectively a ‘reasonable cause test’ or a ‘post-incident test’ a random drug test.

Tests and results

In addition to considering when testing will be carried out in a workplace, employers also need to give consideration to how that testing is conducted.

In New Zealand the preferred standard for drug testing is usually urine testing (as opposed to saliva testing).

a test, or should they refuse to undertake reasonable testing in accordance with their employment obligations, the next consideration is whether and how to implement any disciplinary action.

If disciplinary action is taken, it is crucial to strictly adhere to the relevant drug and alcohol and/or disciplinary policy.

A failure to apply and follow a policy can render any subsequent dismissal (or indeed any disciplinary action) unjustified.

This point has been demonstrated time and again through the Employment Relations Authority and Employment Court, which

that, when dismissing an employee for breach of a drug and alcohol policy, the employer must: • ensure that the testing (including the reasons for and the manner of testing) strictly complies with the relevant policy • the employee is given an opportunity to explain a failed test • and the employee’s explanation for the failed test is genuinely considered.

If the employee does not give an explanation, or if their explanation is not accepted, then this should be put to the employee, along with proposed outcomes (such as disciplinary action) for response, prior to any disciplinary action being confirmed.

Drug and alcohol testing in the workplace is not without controversy.

However, the requirement to maintain a safe workplace remains paramount.

A good drug and alcohol policy can be an invaluable tool for managing health and safety in your workplace, provided any such policy is implemented fairly and administrated reasonably so as to balance employees’ rights with employers’ obligations.

“Having a drug and alcohol policy in place and following it properly can be an invaluable tool for managing health and safety in your workplace…”

Random testing

The random testing of employees can also be justified in some cases, although, as random testing doesn’t rely on any reasonable suspicion on an employer’s part, it can only be used in limited circumstances.

Random testing is typically intended as a deterrent for drug and alcohol use where relevant employees are in a safety sensitive area or if an employee’s work directly impacts the safety of others.

Risk of impairment in these areas can have catastrophic consequences; and in these situations, intrusive monitoring methods that are generally considered unrea-

This is because it is governed by AS/NZS 4308:2008 (Urine testing standard) and has been designed to minimise false positives.

It is also more effective than saliva testing at detecting certain drug use.

The initial results of any such test will be either negative, or non-negative.

Non-negative test results will then need to be sent to an accredited laboratory for more detailed testing and to determine if the results are positive.

Where appropriate, alcohol testing will generally be carried out with a breathalyser, ideally from a testing agency that complies with Standard AS 3547-1997.

Results from testing of this kind are available immediately, making it a straightforward method of testing without delays that are usually present in urine testing.

have routinely held that, in order for any disciplinary action to be justified as a result of a positive test, an employer must have strictly complied with all elements of the drug and alcohol policy and followed a fair and reasonable disciplinary process in accordance with the Employment Relations Act. In practical terms, this means

Investigation process and disciplinary action

If an employee returns a non-negative/positive sample to

Graeme Tanner is an associate and Joseph Williams a solicitor at Duncan Cotterill, a full service law firm with locations in Auckland, Wellington, Nelson and Christchurch SAFETYNEWS.CO.NZ

APRIL 2018

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SAFETY NEWS

fails to return a negative sample, the conditions of the offer of employment will not have been met and the offer can simply be withdrawn at that time.

Symptoms of a toxic workplace and what to do about them

SAFETY NEWS

Not becoming a toxic workplace comes down to avoiding these eight behaviours, says Marcel Schwantes

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ny good executive or owner of a company knows that culture is king. It's in your best interest to build an organisation where shared values and virtues are held firmly, and where jerks, bullies, and troublemakers don't thrive.

Reason being, if your good workers and high performers are witnessing the toxic behaviours outlined below, it may be affecting them already. It means you may have lost the war on retaining them long term.

Here are the toxic behaviours commonly found in the unhealthiest of companies:

Management only focuses on what's wrong

The atmosphere is one of fear, and employees walk on eggshells.

Their bosses spend too much time looking for whom to blast for the latest wrongdoing. They wield their managerial batons to

correct problems and reprimand people instead of giving positive feedback when things go right.

Too much bureaucracy keeps work from getting done

There are so many levels of approval, so many committees that meet, and so many layers of management to make a final decision. The people that suffer from bureaucracy are the employees.

It clearly communicates to them, "We don't trust you."

Employees are bullied or management tolerates bullying

Babs Ryan, author of America's Corporate Brain Drain, says, "Only one percent of bullies are fired; action is usually taken against the [bully's] target. Your only choice may be to leave as quickly as possible -- especially if the company supports that bully repeatedly and has already exited several of

the bully's targets."

Employees are treated as objects or numbers

People are seen as worker bees serving the wishes of a top-down hierarchy in order to drive the bottom line and make shareholders happy. There is typically little regard for employees' happiness or well-being.

Employees are overworked and overburdened

People's personal or family lives are sacrificed for the job because overwork is common. As a result, you'll encounter high levels of stress, turnover, absenteeism, and burnout.

Too much gossip is killing morale

Gossip is poison to the work setting. It causes disruption and is specifically designed to take someone down. Gossipers are often disgruntled and entitled. They spread their tumor by enlisting others, especially new hires, in their negative spin campaign.

Unethical behaviours are common

In the most toxic workplaces, you'll find a rise in things like theft, fraud, sexual harassment, and workplace sabotage that disrupt morale and productivity.

The stress level is almost insurmountable

Stressful workplaces can greatly decrease the ability to focus and be productive. One study found that employees working under

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SAFETYNEWS.CO.NZ

toxic managers were 60 percent more likely to have suffered a heart attack or other life-threatening cardiac condition.

What do you do if you work for such a place?

First and foremost, steer clear of toxin mongers and don't get sucked into their toxicity. And if

you truly love your job and don't want to leave, doing nothing is not an option.

If your trusted allies of good conscience outnumber toxic workers, and HR works on behalf of protecting the employee against a hostile environment, rally together to expose the problem and take out the perpetrators.

SAFETY NEWS

If toxic behaviours persist in close quarters, bring in a third party to document meetings to protect yourself from undue stress and drama.

Lastly, work to promote a healthy work culture together by living out virtuous behaviours of trust, respect, empathy, listening, and compassion.

Do it consistently to squeeze out unwanted things like gossip, bullying, sabotage, disrespect, and insubordination. The larger the group campaigning against toxic behaviors, the better your chances that your toxic colleagues will be rooted out.

Marcel Schwantes is the principal and founder, Leadership From the Core@ MarcelSchwantes This article first appeared in INC https://twitter.com/Inc

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Provided by Hussey Fraser Solicitors

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Sponsored Article

Smart choices key summits at Safety 360

SAFETY NEWS

The past three years have seen a massive shakeup in health and safety with changes to the regulations, attitudes and protocols needed to handle workplace incidents

T

he National Health and Safety Leaders’ Summit at the Safety 360 event this March brings Safety II and other key topics to the forefront of discussion.

The 2018 Hazardous Substances Management Summit at the same event seeks to acquaint participants with practical solutions to workplace chemical dilemmas.

There are two other summits Health and Wellbeing and Occupational Health.

Many believe it is time for a change in our approach to workplace safety.

Businesses have adopted an approach to health and safety which leaves workers inundated in paperwork and protocols warning them of the risks in their job and mandating how to deal with breaches in health and safety codes.

The goal of this approach is to work towards a society of Zero Harm – which focuses on having no incidents Unfortunately, this approach has had the unintended effect of stifling proactive thought about health and safety risk and disengages the workforce.

This attitude toward health and safety is referred to as Safety I and tries to deliver on the unrealistic goal of no accidents – avoiding the fact that things

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YEARBOOK 2018 SAFETYNEWS.CO.NZ

actually do go wrong.

There’s nothing fundamentally bad about this approach, but in reality it leads to a focus on stopping small events from happening, diverting attention from critical risk events.

Increasingly, organisations are adopting a Safety II approach to their health and safety practice.

Health and safety managers realise that the best people to mitigate risk are those who are at the coalface.

“Organisations have traditionally desired as much central control over their people and activities as possible. But this compliance-based approach may not be the best way to manage work and safety in modern, complex and dynamic environments,” says Dave Provan, PhD candidate in Griffiths’ Safety Science Innovation Lab. “Safety I isn’t applied well to modern environments where safety incidents fall outside the prescribed manual. Safety II applies a mindset of ‘what could go right?’, rather than detailed scenarios of wrongdoing.

“Safety II describes a different approach, one that is centred around openness, collaboration and flexibility, such that the people performing the work are enabled and supported to adapt their work as needed to overcome

the gaps, challenges, surprises, multiple conflicting goals, limited resources, and pressures to always achieve more."

Jono Brent, Chief Executive of Connetics is a pioneer of the Safety II paradigm in his business – a high risk contracting, engineering and logistics company.

Brent stresses the importance of being a visible leader, driving proactive health and safety through communication.

A key factor of applying Safety II is supporting health and safety with two-way communication that allows for health and safety protocols to be continually improved, revised and supported by both management and workers.

“While we have achieved great things under the Safety I paradigm, unfortunately the top down, hierarchal approach to safety has left our staff, who are at the heart of our efforts to keep safe, disengaged with current safety practices.

“At Connetics, we have been using the philosophies of Safety II to put our staff at the centre of the solution and giving them the chance to design their own solutions that drive improved culture and safety performance.

“The implementation of Safety II can be hard – managing the culture shift to develop proactive health and safety means changing the way workers, management and boards view and talk about health and safety,” says Brent.

The chemical industry association Responsible Care NZ has helped provide presentations which will help clarify complex and often confusing compliance requirements “The key to keeping people safe around workplace chemicals”, says Responsible Care CNZ chief executive Barry Dyer “is to provide answers to the all-too-familiar ‘just tell me what I have to do and how to do it’.”

Dyer chairs the hazardous substances summit and Francois Barton of the Business Leaders’ Health and Safety Forum and Chris Jones at the Department of Corrections will chair the Safety ll discussion.

Join the discussion with those leading the shift at Safety 360 26 & 27 March in Auckland.

For more info see www.conferenz.co.nz/Safety360

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Chemical industry leads by example

SAFETY NEWS

S

CHANGES – critical when a chemical ARE HERE…edge incident occurs.

ome ‘improvements’ in the new Hazardous Substances regulations intended to “simplify compliance” will have a detrimental effect on workplace chemical safety.

While 130,000 businesses are reportedly captured by the new Hazardous Substances and Major Hazard Facilities regulations, the official mantra is of 600-900 persons seriously harmed each year by unwanted exposure to chemicals in their workplace.

Downgrading the flawed but effective HSNO Certified Handler requirement has undermined an invaluable capability.

The action deprived businesses, particularly SMEs, of an immediate source of workplace chemical safety and compliance advice -- a safe chemical handling capability and emergency response knowl-

Instead, PCBUs and struggling SMEs must now devise their own solutions to ensure employees are competent to safely handle the chemicals with which they work.

The controversial Major Hazard Facilities regulations at last require chemical plants to determine if local Fire and Emergency NZ detachments have the required capability to deal effectively with a major site or transport chemical incident.

try leaders are moving away from relying on lagging indicators of safety performance in favour of identifying safer work practices and workplaces, by responding to workers’ suggestions about improvements.

Chemical suppliers continue to help customers achieve workplace chemical safety aspirations through product stewardship initiatives. WorkSafe NZ warns against business operators falling victim to uninformed and always expensive ‘consultants’.

Sought after Responsible Care NZ site compliance assessments are non-threatening, effectively capturing chemical safety performance in a variety of workplaces.

The chemical industry continues to lead by example, helping to ensure essential chemicals encountered at work and at home

are safely managed, thereby safeguarding employees, communities and our beleaguered environment.

SMEs rarely join associations -- however they all obtain their chemical requirements from suppliers and benefit from product stewardship advice and cost-effective industry compliance initiatives.

Conscientious business operators can add value by sourcing accurate, cost-effective workplace chemical safety advice and compliance tools from their suppliers, industry partners and Responsible Care NZ.

ARE YOU READY FOR THE NEXT ROUND? So where to from here?

RECENT CHANGES HAVE BEEN MADE To help solve the in-house chemical compliance dilemma, to safely managing workplace Responsible Care NZ delivers cost-effective, specialist, Certified chemicalsHandler within the standard training, com-Health with a certificate. and Safetyplete at Work Act 2015.

Internationally, chemical indus-

Responsible Care is a global, voluntary chemical industry initiative developed autonomously by the chemical industry for the chemical industry. www.responsiblecarenz.com

We can help you understand these changes and how Cost effective half-day workshops you should implement them in your business.

Asofthe industry advocate forforsafe chemicalCare management, Hundreds business operators turned out a Responsible NZ workshop earlier this year eager for accurate and practical advice Responsible Care NZ provides a comprehensive range of

EMPLOYERS NOW

More half-day programmes are planned from July at a venue in all the main centres. For larger groups, onsite presentations be arranged HAVE THEcan OPTION OF for cost effective products and services to enable compliance, more than 25 participants.

DEVELOPING YOUR OWN ROBUST CHEMICAL SAFETY The courses will be subsidised by Responsible Care NZ, which is part a global voluntary chemical industry initiative.

Costs are likely to be less TRAINING – OR YOU CAN than $120 per person for the half-day programme.

WE CAN HELP YOU TO DO IT ONCE CONTINUE TO RELY ON Feedback from the first event highlighted the need to provide time-poor SMEs (who are currently unable to access, correctly interpret and OUR POPULAR PROVEN AND DO IT regulations) RIGHT. successfully implement complex with clear and concise compliance advice.

CHEMICAL SAFETY COURSES, TAILORED TO YOUR The problems are very real and official advice to “read the regulations” is falling well short of the industry educational expectations.

SPECIFIC REQUIREMENTS. invaluable for those struggling with the transition.

Call 04 499 4311

“Just tell me what I have to do and how to do it”, was the plea at the previous Responsible Care seminars and the same is expected at upcoming events.

www.responsiblecarenz.com

The morning and afternoon presentations will each contain two sessions detailing compliance requirements for chemical safety management and finish with a one-hour Q&A session.

RESPONSIBLE CARE NZ, YOUR ONE-STOP WORKPLACE CHEMICAL SAFETY ADVISOR Please register your initial interest (without obligation) in the half-day workshops or the Certified Handler certificate course by emailing joanna@responsiblecarenz.com with your name, company, city, AM or PM preference and contact details.

Or call 04 499 4311 for more information.

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SAFETY NEWS

Enabling employers and particularly SME operators to successfully progress beyond basic compliance to site-specific chemical safety issues remains a challenge

APRIL 2018

SLUG

How to unify resource management aims?

Leaky hospitals and asset control

Including

Three waters resilience Local government aspirations INFRASTRUCTUREBUILD.COM YEARBOOK 2018

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INFRASTRUCTURE NEW ZEALAND

BUILDING NATIONS SYMPOSIUM 2018

THURSDAY 16 & FRIDAY 17 AUGUST 2018 ANZ VIADUCT EVENTS CENTRE, AUCKLAND, NEW ZEALAND

Replace street lights with luminescent plants

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f successful, the institute hopes that its glowing flora could be used to provide low-intensity indoor lighting, or to transform trees into self-powered streetlights.

The need for electricity would be drastically reduced, helping to cut back on power usage, emissions and cost.

Researchers recently made headway by embedding specialised nanoparticles into the leaves of a watercress plant, which induced their test plants to give off

dim light for nearly four hours.

“The vision is to make a plant that will function as a desk lamp — a lamp that you don’t have to plug in.

The light is ultimately powered by the energy metabolism of the plant itself,” MIT professor of chemical engineering Michael Strano said.

To create their glowing plants, the MIT team turned to “luciferase”, the enzyme that, when acting on a molecule called luciferin, gives fireflies their glow.

Another molecule, “co-enzyme A” helps the process along by removing a reaction byproduct that can inhibit luciferase activity.

The MIT team then packaged each of these components into a different type of nanoparticle carrier, which were deigned to help each component get to the right part of the plant without killing it.

Plant nanobionics, a new research area pioneered by Strano’s lab, aims to give plants novel features by embedding them with different types of nanoparticles.

The group’s goal is to engineer plants to take over many of the functions now performed by electrical devices.

The researchers have previously designed plants that can detect explosives and communicate that information to a smartphone, as well as plants that can monitor drought conditions.

Lighting, which accounts for about 20 percent of worldwide energy consumption, seemed like a logical next target.

If your welding boots have laces, they are not welding boots Many project sites and smaller workshops in Australia and New Zealand have made it mandatory for workers to wear lace-up, zip sided boots to prevent rolled ankles and allow for quick removal

T

his may make sense for the majority of workers but not for welders.

The Welding Processes Code of Practice released by Safe Work Australia states that foot protection worn by welders should be “non-slip, heat and fire resistant” and that “welders should avoid using foot protection that has the potential to capture hot sparks and metal debris”, using ‘laces’ as an example of what NOT to wear.

Laces introduce a new hazard to the welder as molten metal, sparks and hot debris are collected in a focused capture point.

The burn risk to the welder is significantly increased especially

if the boots worn are not heat or fire resistant.

Simply put, if your welding boots have laces, they are not welding boots and they put you at risk.

Welders are exposed to unique risks that other workers may not encounter. These include heat, spatter, sparks and potentially flames. Welders wear unique PPE like welding helmets, welding gloves and welding aprons so why are they not wearing appropriate welding boots?

Download The Welding Boot White Paper

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Engineers from the Massachusetts Institute of Technology (MIT) have been experimenting with the idea of making plants and trees glow brightly

INFRASTRUCTURE

Komatsu intelligent machines delivering major advantages for Matamata contractor Long-term Komatsu customer Stephen McPherson has made a big investment in the company’s new intelligent Machine Control (iMC) technology, buying three of the machines – and has found he’s quickly getting a payback on his investment

I

n November 2017, McPherson took delivery of two PC210LCi-10 iMC excavators, joined by a D51EXi-23 iMC dozer which he imported in December.

His company McPherson Contractors is based at Matamata and carries out civil engineering and bulk earthworks as well as rural development and maintenance works throughout the greater Waikato area, and out as far as Tauranga, Whakatane, Taupo, Rotorua and the Western Bays.

McPherson bought his first Komatsu machine – a PC150 swamp excavator – around 1990 and has been buying the brand ever since.

Today, his Komatsu fleet, in addition to his new iMC machines, includes one D65-15 and two D85-15 dozers, plus a number of Komatsu excavators: a PC130-8, a PC200-7 and PC200LC-8 long reach, two PC200-8 conventional, a PC300-7 and an HB335LC-1 24

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Hybrid.

So far, he’s used his iMC machines on a variety of civil construction projects in residential and commercial building sites, primarily for the final trim works.

“We use the bigger gear such as scrapers for the bulk earthworks, then the iMC excavators or the dozer move in and do the final trim,” said McPherson.

“Of course they can be used as conventional machines, but the iMC really comes into its own in final trim work, as it’s just so fast and accurate.

“We get the design plan in the format we can use with the machines, we put that in, calibrate our work with no need for pegs, then we run it all off the network or total station, using our own rovers and total stations.

“We use the final trim capabilities on the excavators for our benching, terracing, driveways,

INFRASTRUCTUREBUILD.COM

road formation and shaping, and services dig out.

“The dozer has much the same capabilities, and we use it for the likes of larger areas, such as commercial sites or bigger housing developments, horse arenas and pond construction.

“It really excels, because it can pick up a couple of points, dial up the grade we want between the points, and then go ahead and shape to the design without any other input or information,” he says.

McPherson has been using “bolt on” machine control systems for a number of years but finds the integrated Komatsu iMC system a real step up.

“This integrated system gives you far better control, none of the components are exposed to the elements, and its additional features cut out any over-digging or under-digging – plus it’s all

automated.

“When we heard about this technology, we approached Komatsu about buying these machines. We like to keep an eye out for new technology developments – I find if you walk around with your eyes and ears open, you get a good feel for the technology coming to your industry,” he says.

“Now with iMC, when we go to a site, we are completely independent. We don’t need to wait for surveyors; we can do everything ourselves, all from the cab with our operators. It makes us way better off.

“We do the work on a site, then as a contractual requirement, the work is as-builted independently by an outside survey; to this point, we haven’t missed any design parameters – we are getting the accuracy we need, and our clients are benefiting from our efficiencies.

“While it’s still a bit early to put numbers on the true benefits we are getting, because there’s so many factors, including operator capabilities, our understanding of the machine capabilities, ground conditions and so on,” McPherson says.

“Until we have a season or two under our belts, we can’t quite say.

“But just in time alone, we are making significant savings with the iMC technology; it gets you through the job a lot faster.”

McPherson also believes that this new technology has the potential to attract new operators to the industry.

“I think another thing the industry should take into consideration with all this new technology and nice gear that we have now is that it’s a really exciting career option for someone to join and be a part of.

“It is a real attraction to some people who wouldn’t otherwise think about coming into this industry, and that all adds to an environment which is conducive to getting good people.

“That’s a real positive for us, in addition to the other advantages of this technology in how we can do our work more quickly and efficiently,” he said.

For more information contact: Elle Schutte Komatsu National Aftermarket Marketing Manager, NZ Tel (09) 969 6704 eschutte@komatsu.co.nz www.komatsu.co.nz

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INFRASTRUCTURE

The Resource Management Act has been amended almost annually since its introduction in 1991.

It is clear we will need both of these warriors at our side if we are ever to do more than tinker around the edges

Looking beyond the RMA What will it take to untangle the unholy mess that has become our resource management system, asks Hamish Glenn?

A

group called Resource Reform NZ (RRNZ) has been formed to galvanise support to progress fundamental, wide ranging reform.

We are seeking a fit-for-purpose modern resource management system.

We believe this is a crucial component of New Zealand’s future, especially when issues such as climate change and changing generational needs are taken into consideration.

The current system is complex, demanding of local authorities and not delivering to either the

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environment or economic growth.

It was interesting to hear Sir Geoffrey Palmer state recently that the RMA began its life as a 382-page document and has now ballooned into 796 pages at last count.

What was designed to provide consistency in resource management objectives and designed to address complicated and costly delays, is now failing.

We have come almost full circle in what mischief we are trying to address.

After hosting a symposium in Auckland earlier this year, we

INFRASTRUCTUREBUILD.COM

feel there is definitely an appetite for change – beyond the current proposed RMA legislative amendments.

There was a broad range of sectors and interests represented at this high-level discussion with representatives from academia, business, agricultural, environmental, local government, central government, planning and legal professions.

While no firm answers came from the day directly, there was an acknowledgement that the answer did not lie in one more round of amendments to the RMA.

It is fair to say there was an overall agreement that wide ranging reform was needed, but there were a range of views and considerations on how to achieve this.

As RRNZ sees it there are several issues which need to be addressed: 1. New Zealand’s prosperity is being held back by a national and local government system and the legal framework in which the wider planning system operates that is no longer fit for purpose.

2. The evidence for that can be

seen through escalating housing unaffordability and consequent health and social issues, the high-cost of commercial development and the struggle to fund much needed upgrades and expansion to stressed infrastructure. In short, New Zealand is simply not building enough, quickly enough, and with the quality and innovation needed to service its growing and changing population.

3. For businesses those issues are stifling their ability to grow the pie for themselves, their workers and their families.

That limits all of our incomes, livelihoods, social services and our overall well-being.

4. The environment is suffering too. While the RMA is New Zealand’s pre-eminent environmental law, the cumulative effects of permitted land use activities, have, over the lifetime of the Act, led to a slow but

significant deterioration in the quality of monitored streams, rivers and lakes. Despite the imperative to protect our unique biodiversity, leading environmentalists describe New Zealand as being at the point of crisis.

5. Looking into the future, we face even bigger challenges in managing growth and responding to demographic change, advances in technology, rising consumer expectations and climate change.

New Zealand’s central and local government system is fragmented, complex and under-resourced.

Making matters worse, the principal laws under which government, local government, business and communities operate – the Resource Management Act, the Local Government Act and the Land Transport Management Act don’t work well together, are difficult to navigate and create

inefficient consents and other business costs and lost opportunities because of inadequate focus on removing the barriers to economic growth.

The costs of all of these are either borne directly by the consumer and home buyers or in lost opportunities when developments need to service growth does not go ahead.

Similarly, fragmentation hinders collaboration and co-ordination between central and local government, between local councils, and between all levels of government and business.

They tend to operate in silos or by passing the buck.

As a result, there is a lack of vision to guide and coordinate development and to protect the environment.

At the same time, the natural environment is still deteriorating across key domains and ecosystems.

The inconsistent application of environmental bottom-lines and the notion that economy and environment are polar choices reflects an inadequate legislative and administrative system.

Conflicting responsibilities of some key agencies exacerbate the problem.

We have identified key principles that we think a new system must include:

Component

Principles for improvement

Environment

• New Zealand’s physical environment (water, air, soil and biodiversity) should reflect our “Pure New Zealand” brand • This will require development of agreed national and regional environmental standards within a committed timeframe • It will need agreement on rigorous environmental bottom-lines that should be met

Planning

• Infrastructure provision, land supply and building rules work together • Plans are clear, simple and aligned nationally, regionally and locally • Plans are able to be resourced and funded

Funding

• Decision-making outcomes and funding are aligned • Funding models facilitate and incentivise growth – “growth pays for growth” • All effective and affordable private and public-sector funding options are deployed

Governance

• National and local leadership in synchrony • Public participation is enabled • Roles, responsibilities and resources are aligned • Future focussed

• Economic, social, cultural and environmental outMonitoring and comes of the system are measured and reported on Measurement – “we know how well we are doing or not doing”

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a maze of statutory regulatory processes.

Consequently, local government is spending too much time on administration, managing negative effects, balancing the budget, and dealing with the costs of growth; and not enough on capitalising on opportunities, supporting strong local economies, improving the environment and building vibrant communities.

Funding for infrastructure is a particular problem.

Current funding systems, including local government rates, are proving wholly inadequate to sustainably fund the scale of infrastructure needed.

Formal consultation processes have become a barrier rather than an enabler of meaningful community engagement.

From a commercial viewpoint, inconsistent rules, the sheer number of councils involved and complex planning and decision-making processes make it unnecessarily difficult and costly to develop land and buildings.

Businesses suffer.

The highly complex nature of our current systems means that projects can’t be delivered in a timely or efficient fashion.

Those delays result in reduced productivity from clogged infrastructure and costs passed through the system due to

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Taking change forward together

RRNZ believes the case for change is strong but change will only be effective if it is done together.

Having consulted extensively, RRNZ knows there are many New Zealanders who agree there is need for change.

Some consider that existing structures are broadly satisfactory.

Their view is that with improvements to the statutory framework, many of the challenges identified can be addressed.

Others recognise the need for change but are unsure of the best way forward.

Understandably, they are reluctant to support significant change without thorough review of alternative options.

They seek objective evidence-based analysis of potential benefits and dis-benefits of substantive change.

The issues of environmental protection, local government roles and responsibility and funding are politically sensitive.

A process is needed that recognises these sensitivities but works through them.

The approach must be one that engenders confidence in the process and outcomes.

RRNZ is carefully avoiding rushing to pet solutions.

Instead, we are advocating for a proper, evidenced based process that starts with no assumptions and works through the options for reform in a measured and careful way.

For all of these reasons, and because change of this nature requires general consensus drawn from a robust consultation and evidential analysis, RRNZ recommends that a broad and independent inquiry is needed.

“The issues of environmental protection, local government roles and responsibility and funding are politically sensitive. A process is needed that recognises these sensitivities but works through them. ” A Forest and Bird advertisement illustrates the sensitivities involved in finding a solution to the problem

What is the way forward?

With the current system costing our nation billions each year in congestion, unacceptably high house prices and poor environmental outcomes we can’t afford to wait for another electoral cycle to roll by.

Each of us impacted by the failing of this system every day.

Our aim is to use the remainder of this parliamentary term to outline and progress what needs to happen for a review of the resource management system to commence in 2020.

We will need to ensure our warriors of patience and time are with us.

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After all it has taken the current members of RRNZ some years to get to this point.

However, we do not want to be having this conversation when our children’s children have children.

There is a far greater awareness of the impact our footprints make than there was a generation ago.

Any progress in the discussion must include the voice of tomorrow.

Likewise, how we view taonga is a vital part of this process.

RRNZ is a group of like-minded

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organisations seeking prosperity for all New Zealanders through development of a nationally integrated governance, planning, funding and delivery system.

That system must encompass central and local government, the private sector and communities.

It is currently comprised of representatives from BusinessNZ, Employers and Manufacturers Association, Environmental Defence Society, Infrastructure New Zealand and Property Council New Zealand and is looking to expand.

Hamish Glenn is Senior Policy Advisor at Infrastructure New Zealand

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Asset management – or lack thereof There has been considerable publicity about leaky buildings at the Middlemore Hospital in southern Auckland, Leigh Auton observes

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e learnt that the cost of remediating a number of relatively new buildings is in the order of $1.6billion.

We learnt that full replacement buildings would be of a similar magnitude.

What was most telling in this saga, but not uncommon, was the almost complete denial by politicians of any knowledge of the issue.

Yet the evidence clearly indicates that the Ministry of Health and presumably the minister were fully advised on a regular basis of the problem.

A familiar tale, unfortunately common, based on my observations of asset management practice.

The issue of poor asset management is particularly a central government issue in New Zealand.

Local government, for all the publically proclaimed views of the sector’s shortcomings, is decades ahead of its senior partner in this regard.

Indeed, local government in New Zealand has been a world leader in asset management since the end of the last century.

This has been driven by a good legislative framework, an irony given that the very parliament directly responsible for state agencies is so poor at managing its own physical assets.

All is not perfect in local government asset management, some smaller and resourceconstrained councils being way behind larger councils.

But the environment for the junior partner of government is replete with the need to address asset management through Long Term Plans, Annual Plans and Thirty Year Infrastructure Plans, all subject to audit.

Plan power

I am a total fan of asset management plans. They should drive your business.

When the condition of your assets is known, you can logically debate the service levels that should apply to meet community needs, within a framework of affordability.

It is this latter issue that is most difficult for elected officials, but the best of the politicians will take the hard decisions to fund community assets adequately.

Bold politicians require bold officials to support them to hold their colleagues to account.

It helps hugely to have the backing of the Auditor General’s office when required!

My concern is there seems to be limited accountability in the central government.

Why is it that so many of our hospitals and schools are in such poor condition?

Why is it that the state is such a poor manager of physical assets?

Interestingly the NZTA has excellent asset management practice, and indeed has been a stand out in driving good asset management practice in New Zealand and wider.

I suspect its governance structure, separated to some degree from direct ministerial oversight as well as a reasonable funding envelope, has a lot to do with it.

opened this February, replacing a 22-year-old modern school of 26 classrooms that was rotting because of water leakage.

The new building is state of the art and will be an attractive facility to educate the leaders of tomorrow. A decile 9 school in the Papakura electorate, it was completed in a four-year planning period.

Another school in the same electorate, in one of the poorest and possibly most socially deprived communities in this country was declared unfit for use at the same time as the new school recently rebuilt.

An announcement was made several years ago that the school would be opened in February 2018.

A visit to the school today will evidence a demolished school site, with security fencing surrounding it, with the 236-pupil school housed in overcrowded temporary buildings.

The school hall is being used for three student classes.

The old school building was demolished because of asbestos and other issues.

A reason cited for rebuild delay is given as security on the site, the preferred builder apparently unable to obtain insurance cover.

Other reasons given relate to water issues apparently inherent in the sloping school site.

to enable local communities to have a greater role in educational provision.

But this community enablement should not abrogate state responsibility, through the Ministry of Education, to ensure that school assets are maintained in a manner that reflects the needs of all our communities, both wealthy and the poor.

Decent asset management plans should reflect the principles of equity and adequate resourcing across all communities.

Poorer communities should not

“Being consistent and persistent over long-time horizons are not exciting competencies, but they are essential to deliver good outcomes in asset management"

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I suspect there are health facilities beyond Middlemore with failing infrastructure.

I also observe that the education sector appears fraught with failing buildings or facilities that are way beyond their use by date.

In my South Auckland community, a very modern three-storey school has been recently built.

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Social split

These two schools indicate, in my view, a social divide in our country that is increasingly apparent.

It seems to be built into our management of our public assets.

Tomorrow’s Schools has not assisted lower decile communities, notwithstanding the overall intent

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be expected to bear inadequate facilities because they are less able to articulate need.

I speak as someone with extensive involvement in asset management processes in local government.

I speak as someone who currently chairs a trust providing digital chromebooks to over 1600 pupils in six low decile schools, providing health services to the schools, and working to improve the quality of housing in these school zones.

The challenges are startling, but so are the opportunities.

The opportunities amongst other things involve the central government, both politicians and public servants, getting their

heads around good asset management practice.

This practice requires the clear identification of ‘asset condition’, enunciating the levels of service desired and establishing an appropriate funding envelope.

Asset management requires leadership that is consistent and persistent.

Time horizons must go beyond electoral cycles and ministers, and indeed need to replicate the processes that local government are legally required to comply.

Being consistent and persistent over long-time horizons are not exciting competencies, but they are essential to deliver good outcomes in asset management.

I mentioned the Homes work

in the trust I chair. I will write another article on that in the future, suffice to say that much of our housing stock, certainly in the private rental area, is in a terrible state.

There is little or no obvious asset management by many private rental owners, certainly in the district I work in.

Some houses are not being fit for human habitation: one has been formally condemned.

Possibly the broad legislative principles that apply to local government assets should be applied to owners of housing rental stock? That would be an interesting debate.

Leigh Auton is a former Local Government Commissioner and a Director of Auton & Associates with 35 years’ local government experience, a chairman/ director/trustee on several boards and provides consulting advice to public and private sector companies

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The vulnerability of New Zealand’s water systems You can’t seem to open an industry magazine or newspaper recently without reading something about infrastructure resilience, John Pfahlert notes

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lthough we are primarily interested in three waters infrastructure (drinking, storm and wastewater), the more we study the subject the more we realise how utterly reliant the provision of three waters services are on other systems also being resilient.

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Water supply and wastewater distribution networks are highly vulnerable to seismic events, as evidenced in the long recovery times from the Christchurch earthquake.

The older pipes in New Zealand’s water and wastewater reticulations commonly include

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materials that may be considered brittle such as asbestos cement and earthenware pipes.

These materials performed poorly during ground shaking and deformation during the Christchurch and Kaikoura earthquakes.

More modern materials such

as PVC, steel and polyethylene performed better but were still vulnerable to major ground movements particularly at connection points to rigid structures such as manholes and pump stations.

Water New Zealand has a work programme with the Quake Centre and IPWEA related to pipeline resilience.

Another key vulnerability is electricity which is required for treatment and pumping processes. In that regard there is some interesting material coming out of Water New Zealand’s latest National Performance Review (NPR).

Only the largest and most critical sites tend to have on-site backup generation.

The situation for water treatment plant stations is that only about a third have backup generators. For water pumps nearly

80% don’t have backup power (See figure 1).

Two thirds of wastewater treatment plants have no backup generation. The overwhelming majority of councils’ wastewater pumps (nearly 90%) have no backup power in the event of a mains failure (See figure 2).

Water and wastewater systems are increasingly managed through automated computerised systems and many pumps and machinery can be operated remotely through the internet or telemetry.

Figure 2

Failure of these systems or malicious interference through cyberattack may be a new hazard that has not yet been fully evaluated by many suppliers.

Overseas almost every day you can read about sustained attacks

the NPR sought responses on were related to emergency management plans and climate change.

While most councils have active emergency management and response plans, there is clear

same piece of coastline have assumptions that differ by one metre over a period of 20 years.

Better and more consistent guidance from the Ministry for the Environment is required and less reliance on council-sourced information (See figure 3).

We know that sea level rise will dramatically affect three waters assets at the coast.

Long-term planning must factor in sensible assumptions and councils should be working from the same baseline information.

Investment decisions about hardening or moving assets can’t be allowed to rely on such wildly different information bases.

“Long-term planning must factor in sensible assumptions and councils should be working from the same baseline information"

Cyber-sensitive

This advanced technology is dependent on electrical, telecommunications and internet integrity.

on the United States electricity grid by hackers.

I assume the same thing is happening here. In that light councils should be ensuring that their treatment plants and pump stations are protected from cyberattacks.

Other resilience related topics

evidence in the climate change assumptions around sea level rise that better guidance from central government is required.

Many councils are relying on different sources of information to back up the figures they are using on sea level rise.

In some cases, councils on the Figure 3

John Pfahlert is Chief Executive of Water New Zealand, a national not-forprofit sector organisation comprising approximately 1500 corporate and individual members in New Zealand and overseas that focuses on the sustainable management and promotion of the water environment encompassing the 3 waters – fresh, waste and storm waters INFRASTRUCTUREBUILD.COM

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Figure 1

Collaboration with government important for local councils There are many key issues and challenges facing the local government sector, says Local Government New Zealand (LGNZ) President Dave Cull

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GNZ, with involvement from local councils and key stakeholders, will continue to lead a number of key projects under its core policy priorities during the next year.

It will deliver four significant projects with the sector during the next year: Water 2050, Climate Change, Housing 2030 and Revitalising Democracy: going local.

This approach was determined and confirmed by an LGNZ roadshow to every council to hear the sector’s priorities.

“LGNZ will continue to address other issues, for example freedom camping and tourism infrastructure funding, but the primary focus will be on its flagship projects,” Cull promises.

Water 2050

Water is a priority for the sector and an area of significant change and integrated policy.

Water 2050 has five key themes: 1. Allocation – alternative models for water allocation 2. Quality – fresh and drinking water 3. Infrastructure – state and value 4. Cost and funding – alternative options 5. Governance and regulatory options The regulatory environment for water management in New Zealand is likely to change following the Havelock North Inquiry, in particular options for drinking water compliance, treatment and wider water regulation.

Freshwater management is also receiving attention through the development of “swimmability” targets, costs and timeframes.

Regional councils are investing heavily to give effect to the NPSFM and indirect measures (working with farmers, riparian planting and nutrient management).

Allocation: LGNZ has started work to consider and recommend alternative approaches for allocating water in anticipation of government policy work becoming public.

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“Demand for water is increasing from a range of sectors, putting pressure on existing systems,” Cull notes.

There is a wide range of potential approaches that can be compatible with social and environmental goals.

Quality: Councils play a fundamental role in protecting and delivering water quality in New Zealand. LGNZ is conducting research to recommend what a fit-for-purpose three waters system will look like.

“Early findings include a limited understanding of the cost to councils implementing new standards, a lack of alignment between government standards and responsibilities, and inconsistent and inefficient collection and use of water quality data,” Cull observes.

Governance: A long-term direction on drinking water within an overarching plan for drinking,

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waste and stormwater is important.

The investment in infrastructure and costs of delivering safe drinking water need to be factored in.

“Our early view is the entity charged with enforcing water compliance should be independent from policy setting.”

Climate change

A climate change decision-making “toolkit” is being designed to help councils with climate change decision-making, particularly around adaptation and provision of information about hazards on LIMs. This will inform a further piece of work, which will begin later this year, which review existing legal frameworks to determine how well they align with New Zealand’s climate change adaptation and mitigation goals.

A survey is being completed to determine the quantity and type

of council owned assets and infrastructure exposed to sea level rise, and their value.

Interim data from 16 councils shows replacement value of $300 million at 1.5m sea level rise, with further data still coming in.

Work is also being done to identify and share the work that councils are undertaking to reduce their emissions and emissions within their communities.

LGNZ is continuing to advocate for a collaborative approach between central and local government to put in place a clear adaptation plan; amend legislation to create a legal framework that incentivises, enables and protects councils making responsible adaptation decisions; to develop a clear pathway to a low or zero emissions economy, and address the issue of adaptation funding.

Recent extreme weather events have again highlighted the urgent need for a Local Government Risk

ment and LGNZ is collaborating with the government on solutions for this.”

Firm focus for LGNZ Conference 2018 The local government sector is focused on leadership and addressing the challenges facing New Zealand and its communities including climate change, sustainability, localism, and the health and wellbeing of local communities.

The keynote and plenary sessions feature inspiring leaders from throughout New Zealand and topics include: • building resilience for a vibrant and prosperous future (infrastructure, environment and future proofing our communities in the global context) • creating resilient, sustainable and liveable places (resilient place-making including community, transport and technology) • building a strong community – a tale of a region (Canterbury region’s regeneration) • building strong local economic prosperity (localism and social, economic and environmental benefits) • inspiring cultural connections to grow thriving, prosperous communities (interacting and engaging with Māori as a strategic partner) • responding to climate change: pathways to a low emissions economy (climate change – adaptation and mitigation) • working together to protect and improve New Zealand’s water and environment (water – healthy and resilient) • inspiring health and wellbeing of our communities (healthy public policy for social and economic engagement) • harnessing localism and empowering communities to succeed (social issues and needs in our communities) • shaping the future of New Zealand communities (a future view of leadership, infrastructure, environment, sustainability, economy and localism) The LGNZ conference is a chance for delegates to listen to fresh thinking from local and international speakers, take part in valuable, hard-hitting discussions and network within the sector, LGNZ President Dave Cull notes.

“It is the one chance each year for all councils to be in the same room at the same time and the threeday conference seeks to take full advantage of this opportunity.”

For more information please visit Conference2018

Agency (LGRA), a central agency that would pool and coordinate local government resources to lower the risk and cost of disaster.

Understanding and adapting to climate change is a key risk for communities, Cull insists.

“The LGRA would harmonise

practices, improve skills in management and financing, provide quality assurance and supply expert staff.”

Housing 2030

Three pervasive issues across the country have been identified:

• housing supply: the intended focus includes addressing existing funding and financing barriers, existing opportunities for regulatory process improvement, and ensuring land supply meets housing demand • social and community housing issues: work will address meeting the needs of people for whom the market cannot provide, including renting as an attractive alternative to home ownership • healthy homes: targeted engagement to ensure rental standards meet rental WoF. Councils in high growth areas are already tackling issues in a number of ways, Cull says.

“Growth councils and others are working with the government on new funding arrangements for infrastructure, exploring joint procurement to get the benefits of scale and actively working to increase the capacity of the building sector (for example through international partnerships).

“Infrastructure funding remains the main issue for local govern-

LGNZ’s vision is “Local democracy powering community and national success.

“To meet the challenges we face we need strong local councils empowered to use local knowledge and expertise to make decisions for their communities,” Cull maintains.

“This new project aims give our varied and diverse communities the ability and authority to find solutions that work best for them and develop local and innovative solutions to the challenges they face.

“It is designed to restore New Zealanders’ faith in democracy by providing more democracy, not less.”

This is a two-year project, he advises.

“Year one will identify the case for localism and why it will add value for New Zealand, practical localism scenarios for New Zealand and recommendations on how to get there.

“Year two will involve a dialogue with the public and government on a decentralised New Zealand.

Decentralisation has been successful in many other countries, with Switzerland being a key example. Localism has been the focus of work by The New Zealand Initiative – “Go Swiss” – and LGNZ will work closely with them on this project.

“Each of these projects are run in conjunction with our members and key external groups, including central government, and where there is willingness we will seek a partnership approach with the government to develop and implement policy solutions under these projects.”

Dave Cull is president of Local Government New Zealand which represents the interests of 78 local authorities in New Zealand

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Revitalising democracy: going local

LGNZ's 2018 conference theme is "Firmly focused on the future: Future-proofing for a prosperous and vibrant New Zealand."

PROPERTY & BUILD

So, how do you feel?

Colliers International’s March quarter surveys on Commercial Investor Confidence and House Pricing were significantly more positive than the December 2017 surveys, back up to around September 2017 levels

O

verall Colliers Commercial Confidence index, countrywide, rose from 18 percent in December 2017, to 25 percent in March 2018.

Is this reflective of wider sentiment?

Looked at on a quarterly basis, survey results can be volatile, so let’s look at the annual change which takes in about equal amounts of this government and the previous one.

Colliers index rose four percent in the year to March – the same increase as the ANZ-Roy Morgan Consumer Confidence Index in the same period.

Confidence in most of the 12 centres Colliers survey was similar in March 2017 and 2018.

Exceptions were Dunedin, Whangarei and Palmerston North, all significantly more optimistic, while Christchurch slipped a bit.

In the same period, the NZX50 rose an impressive 12 percent.

Equity markets are typically lead economic indicators while property markets lag, so property market optimism following a strong share market performance is logical.

While property investors seem to be calmly optimistic, there are innovations in each of the commercial asset classes which have the potential to disrupt investment patterns and returns.

For example, Colliers new report, The Flexible Workspace Outlook Report 2018, notes that of the office leasing deals we tracked in Asia Pacific in 2017, in 36

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some markets, around 40 percent of the area leased was for flexible or co-working office space.

This includes space leased to co-working operators as well as space leased to corporates and intended for activity-based working As a consequence, the proportion of office stock used flexibly is growing.

The report estimates that 17.6 percent of all of Delhi’s office space, for example, is used flexibly, compared to eight percent in Shanghai and 2.6 percent in Sydney.

No New Zealand cities even register, but we are aware that much of the recent leasing activity in Auckland is for this purpose, as well as some Wellington CBD transactions.

Having carried out a detailed analysis of this phenomenon for clients in the past 12 months, we have no doubt that there will be strong growth in this sector.

Technological disruption is driving retail and industrial asset classes ever closer.

Since 2009, online retail sales as a proportion of all sales have more than doubled, from an estimated 3.0 percent to an estimated 7.6 percent (BNZ) and there seems no reason why that wouldn’t keep increasing in line with international trends.

In some concept stores, it isn’t possible to take any goods away they take your order and deliver it.

Increasingly common, ’click and collect’, or delivery to the cus-

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tomer’s home or place of work, allows stores to reduce in size, to become brand statements rather than old-fashioned shops.

The reduced need for retail floorspace is inversely reflected in increasing demand for warehouse and distribution space for couriers and stores themselves.

Smaller inner-city distribution centres are another logical progression on the road to guaranteed same day delivery, underlining the blurring of boundaries between retail and industrial property.

Office

Colliers International’s Global Office survey for December 2017 showed a drop in rankings for both Auckland and Wellington in average prime CBD office net rents.

Auckland is 41st and Wellington is 60th compared to 37th and 63rd respectively, a year ago.

The prime average CBD office yields across the top five cities was 3.3 percent, showing continued value growth in these major hubs over the last 12 months.

interiors.

Refurbishment is expected to start in May 2018 by mall owner AMP Capital.

The last sizeable prime retail space along Lambton Quay has been taken up.

The 484 sqm ground floor space formerly, Topshop, has been secured by Australian cosmetic retailer, Mecca Cosmetic.

Unlike its existing store which operates under the Mecca Maxima brand on Willis Street, the new store will be a MECCA concept store.

In Auckland, more retailers have been announced for Commercial Bay which includes Furla, Superette, Hershel Supply Co and Rodd & Gunn.

Industrial

Our latest Commercial Property Investor Confidence survey shows that industrial investors continue to be the most optimistic in Auckland (64 percent) and Christchurch (7 percent).

In Wellington, industrial investor confidence is tracking slightly behind the office sector but is still high at a net positive 38 percent.

The growing economy continues to drive growth in non-residential building consents nationally for new industrial buildings (factories, industrial, and storage buildings), growing 25 percent in December 2017 compared to a year earlier.

Auckland is particularly active, making up 37 percent of new industrial buildings consents nationally.

National crane count has increased to 125 cranes across the country according to data from Rider Levett Bucknall Q1 2018 Crane Index.

Construction cost inflation for non-residential building eased somewhat at the end of 2017 (Statistics New Zealand).

NZIER’s forecast construction cost inflation to peak in March 2018 at 4.4 percent and moderate slowly until late 2020.

Retail

Last month, we reported on the major expansion plan of three malls in Auckland.

More announcements this month include Christchurch’s Merivale Mall’s plans to undergo a second stage $10 million revamp over the next seven months, which will see new amenities, common spaces, store front and

Alan McMahon is National Director, Research & Consulting for Colliers International

APRIL 2018

Around the world with urban renewal

Generation X Kiwi property Facilities market management & integrated living consolidates streamlined INFRASTRUCTUREBUILD.COM YEARBOOK 2018

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Including

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oint Ridge in Albany is a master planned community comprising 139 terraced homes/villas, four apartment blocks, two resort style pool complexes and a gym/community area.

Of the 21 homes remaining for sale at Point Ridge, there has been particularly strong demand from Generation X buyers.

Richards believes the reason Point Ridge appeals to this demographic is because the integrated housing model represents a good example of social sustainability not found in apartments or most other housing developments.

This is where the design of the physical environment is combined with a focus on how the people who live in and use a space relate to each other and function as a community.

“Building new communities that can flourish and become socially successful and sustainable is as important as designing places that are physically, economically and environmentally sustainable,” he says.

Richards asserts the challenge of delivering a housing develop-

Social sustainability fuels Gen X interest in integrated development A housing development with onsite amenities in Albany is finding favour with Generation X, says McConnell Property General Manager, Nigel Richards ment with a strong sense of community means transposing some of the ideas of how communities used to relate and operate in the past to a more contemporary setting.

And it is these concepts which he believes resonate with Generation X. “Most Generation X’ers will have childhood memories of playing in the street with other kids, for example.

“So, one of the things we considered with Point Ridge is

the duty of care we have to build internal environments which feel like the streets and communities we grew up in.

At Point Ridge, onsite amenities like pools, exercise facilities and common areas for people to gather at offer further ways for residents to come together.

Resident Anthea Ramohitaj, a Generation X’er who has lived at Point Ridge for just over a year, says many families with teenagers live there and her children feel part of a friendly community.

“The benefits of closer living are we help each other out with car-pooling and with drop offs and pick-ups to the school bus.

“We get to mix with other families around the pool or at the gym, which helps to strengthen that sense of a connected, supportive community.”

Construction of the final terraced homes at Point Ridge were completed in December 2017, marking the end of McConnell Property’s eight-year involvement in the development.

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13 Multi-Billion Dollar Urban Renewal Projects Urban renewal is breathing new life into often neglected parts of cities worldwide, transforming under-utilised and disused areas into spaces that meet changing population and cultural requirements

PROPERTY & BUILD

ith 70 per cent of the world’s population predicted to live in urban areas by 2050, the number of major scale multi-billion-dollar projects are on the rise.

And to celebrate, The Urban Developer found some of the most significant developments under construction around the globe.

The World Trade Center Site, New York City USA Ever since the events of 9/11, the New York City council have been rebuilding the 16-acre site where the Twin Towers once stood.

The area will include a total of 14 buildings which includes the Freedom Tower (the tallest skyscraper in New York), a new transit hub, the 9/11 memorial and museum, a performing arts centre, a mall and a park.

Different architects and developers have been involved with each building to encompass history and current urban designs.

Construction will be complete by 2020.

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Todtown, Shanghai China Todtown is a $US1.5 billion ($1.88 billion) dollar project in Shanghai’s Minhang District.

Starting construction in 2014 and set to be complete by 2020, Todtown’s master plan is created by Chicago-based architectural firm Goettsch Partners and Hong Kong-based studio Lead 8. The project has been designed to incorporate the commercial and environmental space, integrating greenery with a mix of green roofs and mini parks.

The mixed-use development will supply 1000 apartment units, a 121,000 square metre shopping mall, office space and a 5,000 square metre cultural centre.

Barangaroo, Sydney Australia

Europa City, Paris France EuropaCity is a planned EU$3.1 billion development outside Paris.

EuropaCity is a EU3.1 billion (AU$4.89 billion) cultural mixed-use French development 30 minutes outside of Paris. Located in the agricultural area of Triangle de Gonesse, between Paris and Charles de Gaulle Airport, the 80-hectare development is scheduled to open in 2024.

Designed by Danish architects Bjarke Ingels Group (the firm behind Google’s California headquarters), the development aims to combine the efficiency of urbanisation with the sustainability and liveability of countryside living, connecting urban Paris with the rural area.

EuropaCity will be entirely pedestrianised, with travel done by foot,

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bikes or via new modes of transportation. It will be home to new housing, shops and restaurants, an artificial ski slope, golf system and a new transit system.

A joint project by the French real estate company Immochan and the Chinese investment company Dalian Wanda, Europa City has also become the largest private investment project in France since the establishment of Disneyland Paris in 1992.

As with many major development projects, EuropaCity Paris has met with criticism, including accusations it promotes consumerism and won’t be able to reach the number of new jobs it anticipates.

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Covering 22-hectares along Sydney’s harbour, the $8 billion Barangaroo waterfront precinct has a major focus on sustainability and the creation of green space.

The mixed-use area targets a goal of providing 23,000 jobs, creating 3500 residents a home as well as contribute two billion dollars a year to the New South Wales economy.

Expectations for this precinct is to become the greenest and most advanced financial district in Australia, with an estimated 18 million annual visits.

Developers have committed to leave and enhance more than half of Barangaroo as accessible public space. Spanning across three development areas, Barangaroo South a 7.5-hectare site developed by Lendlease, is the first of the three to be established.

Turning a concrete container terminal into a world-class waterfront precinct, Lendlease is aims to open the public space in 2021.

PROPERTY & BUILD

When complete, CityLife will be the largest new public space created in design capital Milan for more than 120 years.

The EU2 billion ($3.2 billion) residential and business district project is under construction by architects Zaha Hadid, Daniel Libeskind and Arata Isozaki.

Developed by Italian insurance company Generali, the project is a flagship example for sustainability and smart mobility that will be completed before the end of this year.

CityLife Milan is the largest car-free area in Milan and all of Europe, providing 168,000 square metres of landscaped parkland dedicated to pedestrians and bicycles promoting the use of environmentally friendly modes of transport.

Featuring the tallest skyscraper in Italy at 202 metres, CityLife Milan provides space for both office and retail buildings with commercial fronts on the piazza.

CityLife Milan, Italy

Melbourne Docklands, Australia Continuously shaking off the “wasteland” tag, Melbourne’s Docklands boasts one of Australia’s largest urban renewal projects currently under construction.

Managed by Places Victoria, the Melbourne Docklands has become one of the city’s most important job centres, creating 58,000 jobs for

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13,000 residents.

By transforming once industrial wasteland into a hub for leisure, dining, retailing and both residential and commercial real estate, the project that started in 1997 covers 190 hectares and is aimed to be completed in 2025.

New City Istanbul will reimagine itself as the 8,000-year-old river city.

The 8.7 million square metre-wide former military zone will be used as a reserved housing zone. A timeline and project costs have not been disclosed but the airport is estimated to be open by 2018 and has $US6 billion ($7.7 billion) in funding.

Plans were approved in 2016 to build 50,000 residences across seven towers.

The proportion of Turkish citizens living in cities has increased from about half the population 30 years ago to 75 per cent today.

Between 2000 and 2015 its major urban areas absorbed 15 million new residents.

Newhall Ranch, Los Angeles California

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Brisbane New City Istanbul, Showgrounds, Australia Turkey A $2.9 billion urban renewal project by Lendlease and The Royal National Agricultural and Industrial Association of Queensland (RNA) will see the 1970- style Brisbane RNA showgrounds revamped.

The regeneration project is expected to deliver $300 million per year to Queensland while supporting Brisbane’s future economic and population growth by creating more than 2,000 jobs.

Currently in the seventh year of a 15-year project, becoming the centrepiece of a new “urban village” precinct, the RNA is hoping to re-energise the annual Ekka while also becoming a year-round destination for the community.

Upon completion, 15,000 people will occupy the residential buildings surrounded by commercial offices and retail precincts.

Having recently made the news about potentially become Amazon’s second headquarters, the Newhall Ranch development is the largest housing project in Los Angeles County.

Situated in Santa Clarita Valley this $US14 billion project ($18 billion) will provide inhabitants of Los Angeles with 21,500 residential units by 2035.

The project comes amid a severe housing crunch in California.

Developer Five Point Holdings is looking at naming the project Net Zero Newhall upon its approval, and is committed to make Newhall one of the most environmentally sustainable master-planned communities in the US. The development will be a mixture of single family homes, condos, apartments at affordable prices below the usual market rate.

The development will also be incorporating 10,000 acres of public outdoor space, 75,000 permanent jobs and 21,500 homes on the former farmland.

Although focusing on sustainability and upholding green building and design standards, criticisers of the project state that local threatened and endangered fauna and flora will be affected by constructions works.

Still waiting for its final approval, the project is expected to start in late 2019.

By 2020, the first residents are anticipated to move into their new homes.

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New Cairo Capital, Egypt The Egyptian government has started one of the world’s largest urban renewal projects: a new and still un-named city. The city’s aim is to provide a solution to overcrowding, pollution and rising house prices.

Forty-five kilometres east of Cairo in the Egyptian desert, the $60 billion project will provide housing for up to five million people, with malls, government buildings, a theme park, energy farms and a newly established airport, across a 270 square-mile-site.

Backed with many investors including a $20 billion contribution from Chinese developers, the New Cairo Capital will include mosques and

The largest development in New York since the Rockefeller Centre, the Hudson Yards know how to impress with statistics.

Boasting nearly two million square metres of commercial and residential space, state-ofthe-art office towers, and more than 100 shops including several flagship stores for independent brands and a collection of restaurants are the beginning of the renewal story.

Horse stables and parking will transform into a variety of new public green space.

Upon completion 4000 residences, a public school and a luxury hotel will complete the $US25 billion ($32 billion) project by Related Companies and Oxford Properties.

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churches, a 5000 seat conference centre, nearly 2000 schools and colleges, 600 medical facilities and what some are calling the world’s largest park.

The project cost, an estimated $US45 billion dollars ($57.9 billion), aims to be complete by 2022.

Despite attracting large amounts of international investments, this figure has raised concerns with local and international urban planners over potential the project may turn into a ghost town given the country’s current economic climate.

Hudson Yards, New York City USA

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Fishermans Bend, Melbourne Australia Fishermans Bend’s $4.5 billion urban renewal precinct covers 480 hectares of former industrial land.

In an attempt to connect the CBD with the bay area, located less than seven kilometres south of Melbourne’s CBD, this urban regeneration project promises 80,000 jobs, accommodating 80,000 residents by 2050.

The project claims the location and proximity to Melbourne’s CBD is attractive to young families, with the addition of new primary schools and a secondary school to the area.

The key focus on the renewal is sustainability with 121-hectares of the area dedicated to open space. The area is also promoting sustainability through plans to have a zero carbon footprint, recycle 70 per cent of household waste and limits each household to 100 litres of potable water per day.

Currently the state government has put on hold 26 of the high-rise projects proposed as many of these buildings would violate the cities building codes.

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Elephant and Castle, London UK

Elephant and Castle is hoping to help resolve London’s looming housing crisis with its $5.3 billion project.

Another international project of Australian developer Lendlease, the group is responsible for one of London’s biggest regeneration projects to date.

By exemplifying how councils can work with the private sector to make up for budget cuts and still creating affordable housing, the project is often used as a prime example of social impact investing and how it can influence future cities facing major housing issue.

By 2025, 3000 new homes will be created within Elephant and Castle, providing a mix of low-rise apartment blocks, a luxury tower block and townhouses as well as 30,000 square metres of retail space, a central park and a university campus.

Only 25 per cent of the newly-created homes meet the category of affordable housing, which created a recent uproar.

Nonetheless, the project is steadily going ahead with planned completion by 2025.

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New app to streamline maintenance and enable comfort management BuildingIQ has launched a mobile app designed to provide a building’s facilities team with access to BuildingIQ’s 5i platform ** while on-the-go

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ith the app, members of the facilities team can identify and submit issues within a facility or campus, document with mobile photos, and automatically create a maintenance ticket in the moment.

Features can also be enabled to allow tenants to submit service requests for automatic ticket creation.

The app may also be used to engage tenants on how they feel about the space by enabling a Comfort module.

With Comfort enabled, it takes only a few seconds for a building occupant to let the facilities team know if a location is too warm, cold, or just right.

This vital feedback is mapped to building system status and presented through heat maps depicting the human factor of cooling and heating operations.

The BuildingIQ Mobile App is now available for current BuildingIQ customers utilising Facility Worksite.

“Mobile applications can be great for productivity when done right,” says Jimmy Cheung, director of Facilities and Engineering.

“Apps that combine both facilities professional and tenant tools in one – like BuildingIQ’s app – are potentially very valuable in delivering flexibility, utility and engagement.

“This is especially true as building owners, management firms

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and facility companies all embrace broader service offerings.”

The app is an integral part of BuildingIQ’s mobile-focused strategy to aid facilities teams by improving their efficiency and creating more powerful technology-enabled services for the buildings industry.

According to chief executive Michael Nark “this intuitive app integrates with our intelligent energy management platform, allowing the user to document, assign, track and verify tasks in real-time.

“The tenant-facing features are a key step in allowing people working within a building or campus to act as an extension of a building’s sensors and fault detection system, so that issues can be identified and resolved quicker.”

Streamlined operations and insights

Using the Service Centre module, each member of the facilities management team can create and manage work ticket that they created or have been assigned to them – all in the moment – to improve efficiency.

The Service Centre module provides an overview of all work orders so that managers can ensure operations are running smoothly in real-time.

By enabling the Comfort module of the BuildingIQ Mobile App,

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facilities teams will be able to gauge the ‘human’ impact of their heating and cooling strategies, by turning tenants into the ultimate building sensors.

Everything is made simpler by using the Goldilocks principle – a tenant is either ‘too cold,’ ‘too hot,’ or ‘just right’ at any time during the day.

When submitting comfort information, feedback will be tagged by location within a building by floor and, more specifically, by the space/zone on that floor.

The data can then be used to create heat maps to correlate hot and cold comfort calls with building system settings. This will encourage more real-time feedback, replacing hot and cold calls that occur only once discomfort has escalated to a point of disruption.

Using the BuildingIQ Mobile App, facilities managers will also be able to: • Configure whole floors or spaces within floors • Obtain a quick overview of

aggregated feedback across all tenants and locations • See static information about comfort and energy management • Engage with tenants directly ** The BuildingIQ Mobile App is designed to be used by current customers. A Facility Worksite subscription is the minimum recommended requirement to benefit from using this app. The BuildingIQ Mobile App is available for download at the Apple App Store or Google Play. Learn more at www.buildingiq.com/app BuildingIQ provides technology-enabled services to help building owners and operators worldwide save energy, increase operational efficiency, and improve tenant comfort. Through its 5i cloud-based platform, BuildingIQ delivers on the promise of the Internet of Things (IoT) to help visualise, analyse, control, and optimise energy usage within a single facility, campus or portfolio of buildings. More than 100 million square feet of global building space is currently being serviced

by BuildingIQ www.buildingiq.com

Acuite has taken their ability to provide 360-degree health checks in real-time to the construction industry to a new level by integrating with PlanGrid

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cuite and PlanGrid have partnered to offer the construction sector a comprehensive solution that improves performance through streamlining project delivery and generating insights and analytics.

Construction productivity software has been game changing in the construction industry throughout the past few years.

Traditionally, project teams have gathered at the end of a month to run through spreadsheets and data to analyse how they were tracking – often uncovering hidden problems and delays that should have been rectified earlier.

Now, “monthly reports in real time” give project managers and executive management the ability to recognise issues and jump in

Critical control

Acuite’s new integration with PlanGrid facilitates critical project KPI information flow between platforms.

Project data collected at the source through PlanGrid populates Acuite’s analytics dashboards, giving users the ability to identify trends, track performance improvements, highlight poor performance, reduce risk and improve margins.

The data-driven approach helps customers complete projects more efficiently, to a higher quality and with improved safety standards.

Everyone on the worksite is upto-date with developments, risks and changes.

David Speight, COO and co-founder of Acuite says it is important to his company to tap into PlanGrid as a best-of-breed system, to enhance services to customers.

“Since the cloud has gone mainstream, and the influx of mobile devices on the worksite, there is an expectation out in the field that technology will be available to make life easier,” Speight explains.

“The commercial construction industry is time poor and people want to get out, not do admin.

“Communications can, as a result, take a back seat,” he adds.

“We roll all the info at project level to regional and portfolio views.

“If the contractor chooses, they can also give the client access to certain KPI information, building transparency and trust between client and contractor, which has in the past been a challenging area.”

“PlanGrid gives users the tools to collect and share real-time intelligence from the field, and Acuite will now help our customers make even better use of that rich data to make stronger business decisions and build more effectively,” says PlanGrid Head of Strategic Alliances and Partnerships James Cook.

A common barrier in construction projects is keeping on top of consultant response times to queries, an architect’s response to a design question, or any of the other contractors who are part of the vast chain.

Acuite’s insights makes it possible to instantly visualize and report on subcontractor and consultant response times as well as the ability to set and track benchmarks around response times early on to increase the chances of a successful project outcome.

“The industry is so dynamic and people are expecting to use technology more and more,” says Speight.

“It is becoming increasingly important to use data to manage performance, providing transparency so stakeholders are aligned and not referring to different versions of the truth.

“This will go a long way to shift the sector from the constant adversarial relationships that are often the unfortunate outcome of years of work delivering a project.”

Acuite customers are reaping real benefits from Acuite’s continuing development and partner integration.

Long-term client Dominion Constructors, Programming Manager, Richard Joseph says: “The strength of our existing systems and Acuite combined together is to give access to accurate information quickly so that our staff focus on our core function and business which is constructing projects; not extracting and sifting data.”

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Leading construction health check provider joins forces with construction productivity software leader

as soon as they become apparent, enabling conversations to happen before the fact instead of constantly fighting fires that are often only noticed as they start to delay and derail the project.

New Zealand company, Acuite, was launched in 2014 to provide a construction-specific business intelligence reporting platform that plugs into existing systems and gives real-time dashboard views into project and portfolio health.

It also provides insights into trends and analytics across critical reporting KPI’s of time, cost, quality, health, and safety and relationships.

This information is available not only on an individual level, but across the whole project, within regions and across different regions.

The leader in construction productivity software based in San Francisco, PlanGrid’s construction productivity software is used on more than 500,000 projects in 78 countries.

The company empowers contractors, owners, designers, and architects to easily and seamlessly collaborate throughout the entire project lifecycle by streamlining document control and distribution and providing teams with real-time access to all relevant construction information from any device.

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