Best Practices for
RICS Awards China 2018 Winning Projects and Teams
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
Message from Managing Director of RICS in Greater China Aimed at celebrating outstanding achievement across a broad spectrum of the built environment in China, we launched the RICS Awards China in 2017. This is the highest accolades bestowed by a globally renowned professional body. Since its launch, we have received overwhelming response across the nation in terms of both quality and quantity. We also see increasingly fierce competition amongst our submissions. This has prompted us to produce this Best Practices guidebook to facilitate sharing of good practices and knowledge by our winners. Not only does this guidebook showcase outstanding achievements and successes in our industry, but more importantly, it encourages constructive competition, allowing industry players to ascend hand in hand. We take this opportunity to thank all companies and teams for putting their best work forward. Year after year they have continuously excelled themselves. Our gratitude also goes to our jurors for not just reviewing all submissions, but also making difficult decisions choosing the winners. We together witness the exponential development of the built environment in China. Last but not the least, we look forward to your participation, and inclusion of your winning work in the years to come.
Pierpaolo Franco Managing Director of Greater China, RICS
Comments from Jury Panel of the RICS Awards China 2018 The RICS Awards China 2018 received widespread attention and an enthusiastic response from the industry. There were nearly 100 applications for awards across all categories, twice that of the previous year. This year’s applicants are all leading companies from different sectors of the industry, including world-famous international consultants, outstanding local design companies, management consultants, and research institutes, as well and renowned contractors, developers and investment funds. Some are team nominations while others are project nominations; they are all testament to the efforts of the talented professionals behind each successful project. Special attention goes to the 17 winners of awards this year. Their excellent results reflect the industry’s development in recent years, with emphasis on quality, collaboration, creativity and sustainability. Through their work, these winners promote the professional code of practice and spirit which RICS has always advocated. These outstanding representatives from China’s real estate and construction industries provide us with remarkable examples to learn from, and a target for others to aim for and surpass.
高世斌 Gao Shibi Head Juror of the Jury Panel of the RICS Awards China 2018
Best Practices for RICS Awards China 2018 Winning Projects and Teams
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RICS Awards China 2018 Winner List
PROFESSIONAL CONSULTANCY SERVICE TEAM – CONSTRUCTION
COMMERCIAL PROJECT
Arcadis
Arcadis
East China Architectural Design & Research Institute
P6 P 10
PROFESSIONAL CONSULTANCY SERVICE TEAM – REAL ESTATE
RESIDENTIAL PROJECT
JLL
Shui On Land for Lakeville Luxe, Shanghai
P 15
RESEARCH TEAM Cushman & Wakefield
P 37
P 41
BEST DEAL P 15
FACILITY MANAGEMENT TEAM
JLL
P 45
CBRE
P 48
BEST BIM APPLICATION
Cushman & Wakefield
P 16
GT Land Plaza
P 21
REGENERATION TEAM
JCM International Engineering Technology Co. Ltd and P 52 China Electric Power Research Institute P 56 CES INVESTMENT
SUSTAINABILITY ACHIEVEMENT
Arcadis
P 25
COFCO
P 60
COFCO
P 28
Arcplus Group
P 64
CONSTRUCTION PROJECT Arcadis
P 32
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
RICS Awards China 2018
PROFESSIONAL CONSULTANCY SERVICE TEAM – CONSTRUCTION
Winner
Arcadis
How accomplished is Arcadis, a market leader in China’s quantity surveying industry?
From laggard to leader? History of the quantity surveying industry in china Quantity surveying is a terminology that originated in Britain. Quantity surveyors are responsible for cost and contract management during construction, and are called accountants and solicitors of the real estate and construction industries. Quantity surveying is a professional service that deeply integrates accounting and legal knowledge with architectural planning, design and construction work. The profession has a short history in the Chinese market as there was almost no demand for engineering consultancy under the planned economy in the days before the implementation of the reform and opening up policy when the construction industry adopted a fixed pricing system. With the reform and opening up policy in place, the planned economy was replaced by a market economy, construction and real estate projects needed to be completed in the most efficient manner with the highest price-performance ratio, which created an opportunity for quantity surveying to develop. As the Chinese economy has developed rapidly, the government has continued to invest in major infrastructure projects throughout the country in recent years, such as high-end airports, and high-speed rail, and shopping malls have mushroomed. This has boosted the prospects of engineering consultancies. However, different from their sophisticated Western counterpart, the Mainland quantity surveying industry has its own unique characteristics. Firstly, in terms of business model, influenced by the central economic planning of the past, the conventional fixed price system is still being used in many state-owned companies and by state-owned assets today. Instead of full marketization, they merely follow market prices so further development and evolution are needed. Secondly, compared with the West, China’s infrastructure building frenzy has brought about projects of a greater scale, higher complexity and tighter timeframe, fueling demand for manpower and expertise. Looking at this from a different angle, this trend is also driving the rapid development of the quantity surveying industry in China.
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Forerunner arcadis is the leader in the quantity surveying industry in china
independent judgments, this is where the professional values of the quantity surveying industry lies – all these were manifested in the three Arcadis projects. The firm helped the owner control the final cost to within the budget through its excellent professional skills and
Early entry into the China market: Arcadis is the engineering
leveraging its strong data bank.
consultant for the first batch of projects launched after implementation of the reform and opening up policy. Arcadis set up its first office in Shanghai in 1993. Today, it has offices in 22 major Mainland cities with footprints all over the country. With ample experiences and expertise in design, consultancy, cost and project management in various fields, including environment, water, infrastructure and architecture, Arcadis strives to achieve the highest quality and sustainable results for its customers. It provides professional services to all kinds of construction projects, such as residential, commercial, industrial, education, healthcare, hotels, leisure and entertainment. Iconic projects: In the last 25 years, Arcadis has endeavoured to promote professionalism in the Chinese quantity surveying services and provided full-course cost consultancy and contract management
HKRI Taikoo Hui is situated in the commercial zone of Nanjing Road
for many real estate and infrastructure projects. Among the
(W), Jing'an District of Shanghai and adjacent to three subway
numerous projects Arcadis has completed are almost all the iconic
routes; it is one of the city’s iconic commercial complex development
structures in major Mainland cities. They include, but are not limited
projects in 2017. The project has a complex design, great variety
to, the CMG Headquarters (formerly CCTV Tower) in Beijing, Terminal 3
of works, and more than 100 work and supplier contracts, as the
at Beijing Capital International Airport, Shanghai IFC, Shanghai World
cost consulting partner, Arcadis leveraged its past experiences and
Financial Center, Jin Mao Tower, Plaza 66 in Shanghai, Shanghai
expertise and advised the owner to adopt the mix contract model
Disney Resort and Kerry Centre.
of main contractor + professional sub-contracts to ensure that the construction works were completed on time and met the required
2017 witnessed the completion of many key projects for which
quality standards under management of the main contractor. It
Arcadis provided quantity surveying services. In the RICS Awards
also advised the owner to adopt the internationally applicable FIDIC
China 2018, Arcadis was the winner of Professional Consultancy
contract terms and spent a lot of time studying the terms exclusive
Service Team of the Year — Construction for the HKRI Taikoo Hui
to the contracts. Besides integrating domestic laws, regulations
(Dazhongli), Shanghai Magnolia Plaza and Raffles City in Changning
and specifications, Arcadis also drew up a clear division of the task
District of Shanghai projects. Gao Shibin, head juror of the jury
interface between the owner, main contractor and sub-contractors
said: “The three projects are large-scale downtown commercial
through close communication with the owner and design consultant,
complexes adjacent to or above a subway station. They also involve
which effectively mitigated disputes arising from confusion of
the preservation and refurbishment of historic buildings, there were
responsibilities, thus minimizing the compensation risks the owner
significant challenges in overall planning and design, cost control,
might be exposed to.Shanghai Magnolia Plaza, located north of the
contract procurement and management and monitoring of work progress. As a quantity surveying service provider, Arcadis ensured successful completion of the projects with its highly professional services, by fully understanding the customers’ needs and project characteristics and applying the international contract procurement model, innovative smart information and quality management systems.”
Multiple challenges highlight firm’s professional values Creating a win-win situation for Parties A and B with professional and
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
Bund in Shanghai, is a massive skyscraper complex comprising a 5-star hotel, a smart Grade A office tower and mixed-use buildings. It includes one 66-storey office tower (320 meters), one 39-storey
Technological innovation boosts efficiency with less effort
W Hotel (172 meters) and a 6-storey exhibition hall (57 meters) with podium buildings. Construction of the complex was disrupted
The construction industry may be slower than other industries in
by suspension, catch-up work and delay; there were also major
adopting new technology, but technological innovation as a tool that
amendments to the work plan (the foundation pit excavation method
makes work more efficient has boosted the effectiveness of project
was changed from the original large pit excavation to separate
management.
pit excavation). When the main contractor made a large claim for compensation, Arcadis advised the owner of an appropriate
In the HKRI Taikoo Hui project, management of contract amendments
compensation amount based on the contract terms, contract
was a challenge due to the large number of contracts and
quotation method and actual work progress. It also assisted the
design consultants. Arcadis tackled the issue with the eAIA (work
owner in business negotiations and helped the parties involved
instructions management system) which is unique to the project.
reached a consensus with a supplemental agreement drafted by
All team members could access the large shared management
Arcadis and signed by the owner and contractor.
platform anytime and from anywhere. Each work instruction must have approval from the design consultant, quantity surveyor and all relevant departments of the owner in the system (work flow) before distributing to the contractors. This ensured the confidentiality of all work instructions and optimized the efficiency of document management and circulation.
Raffles City is situated at the heart of the city in Shanghai, the site was formerly occupied by St. Mary's Hall, the alma mater of author Zhang Ailing. It includes three office towers, a podium shopping mall and five heritage blocks restored from the former site of St. Mary’s School. Line 2 (already in operation) of the Shanghai Metro passes under the site, dividing it into two separate sections, east and west.
Taking into consideration the difficulties in the construction, a
Two main contractors were responsible for the construction, which
number of innovative technologies and uncommon materials were
made it a more complicated project than a project with contract
used. For example, Plot 46 was right on top of the superstructure of
management, cost control, work schedule management, quality
Metro Line 2, so strict requirements were set for structural safety,
management, work safety and project coordination all undertaken
and there were stringent shock-proof and noise-proof specifications
by one main contractor. In order to overcome the difficulties and
for the new superstructures and tunnels of subways. Furthermore, a
mitigate the risks encountered, Arcadis provided the owner with
100-year-old building weighing 3,300 tonnes had to be uplifted for
professional opinions on carefully-considered contract drafting,
relocation in one piece to make way for the project. For protection
appropriate tender phasing and clear task interface division at the
purpose, the relocation plan involved reinforcement of the building’s
beginning of the tender stage. Apart from avoiding contract risks to
foundation, structure, external walls and decorated surfaces, while
the greatest possible extent, Arcadis also sought to minimize evading
unconventional work techniques and imitation materials were used
of responsibilities and disputes between the main contractors so
for the doors and windows.
project costs could be controlled within the budget and to ensure an efficient work schedule and good work quality.
In the Shanghai Magnolia Plaza project, Arcadis compiled corresponding tender documents and lists based on the construction
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techniques of each tender stage and actual progress in an innovative
measures adopted included rooftop heat recovery facilities and
manner. Taking into consideration the extraordinary heights of the
chilled water collection for irrigation and green initiatives so as to
buildings in the project and the top-down techniques employed
enhance sustainability of the project.
for constructing the podium basement, the characteristics of the top-down construction method (temporary cushion, one pillar one pile, repairing exposed earth edges by pounding) and skyscraper project (interim fire measures, vertical conveyance and pumping concrete to an extraordinary height) were specified in the tender stage for the main contract to prevent disputes from arising in the
Looking into the future, new requirements of the new digital business model for practitioners
course of construction or final accounts settlement. In the steel structure tender stage, Arcadis specified that all detailed costs were
For the future development of the quantity surveying industry in
considered in the tender price (explained in additional diagrams)
China, Mr Joe Chan, Head of China East, Arcadis, gave his unique
through adjustments based on quantity and price determination
opinions. He believes the Chinese quantity surveying industry will
principles of the international lists in order to avoid disputes
enter the digital era as technologies continue to evolve and market
regarding the tender price and quantities.
demand continues to change. In the near future, digitalization will overturn established business models and ways of practice. In response, practitioners in the quantity surveying industry must
Urban renewal facilitated by mission of sustainability Arcadis’ mission has always been to follow sustainable development concepts in creating green and scientific modern architecture, especially against the background of urban renewal. As the full-
change their way of thinking, reduce manpower input in basic tasks through automation and place more emphasis on analysis and planning to enhance their own professional value. In short, the industry should change from a service provider to partner by offering professional advice to investors as to how a project can be completed in the most cost effective way.
course cost consultant and contract management service partner, Arcadis provided strategic advice for refurbishment, upgrading and protection of historic buildings and actively contributed to urban renewal by encouraging the owner to adopt green and sustainable design plans. In comparing construction costs, Arcadis selected suppliers with sustainable techniques and means.
Mr Chan said the new business models would spur corresponding changes in requirements for industry professionals, companies and professionals must prepare themselves and embrace the arrival of the new era. On the one hand, proactive digitalization was necessary; with more basic tasks digitized, more professional capacity could be released for analytical tasks. On the other hand, more training In order to turn Raffles City Changning into a green project, the consultant team studied various sustainable development techniques; Arcadis provided professional opinions from the perspectives of construction and operation prices. The owner adopted techniques and methods such as the LOW-E vacuum glass
for employees was needed to enhance their analytical and planning capacities. Successful transformation based on experiences gained from past projects would allow the industry to play a more important role in the process of urbanization and the “go global� strategy of China.
curtain walls to minimise heat conduction. Other techniques and
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
RICS Awards China 2018
PROFESSIONAL CONSULTANCY SERVICE TEAM – CONSTRUCTION
Winner East China Architectural Design & Research Institute
How the newly inaugurated Hong KongZhuhaiMacao Bridge was built?
The 55-kilometre Hong Kong-Zhuhai-Macao Bridge has officially opened. The longest sea crossing in the world comprising bridge, island and tunnels has significantly shortened the distance between the three regions, a trip from Hong Kong to Zhuhai and Macao is now a short 30-minute drive. The Bridge designers and builders who designed and constructed this bridge are the ones we should thank and remember in this great moment. The construction of the Hong Kong-Zhuhai-Macao Bridge took 14 years from design to completion. Behind this world-class engineering feat were the devoted efforts of dozens of entities, more than 1,000 experts and technicians collaborated to overcome the innumerable challenges encountered. Arcplus Group was responsible for detailed design and construction works of the Macao Port, a huge project with an area of 580,000 square metres. Sparing no effort, Arcplus Group successfully completed the project 8 to 10 months ahead of schedule, reducing the investment amount by close to MOP$3 billion. Lighting up took place on 18 December 2017 in celebration of the 18th anniversary of Macao’s reunification with China, an achievement dubbed by many as “miracle of Macao”. Arcplus Group made great contributions to ensure smooth completion of the Bridge’s construction and was a well-deserved winner of the grand prize of Professional Consultancy Service Team of the Year in the RICS Awards China 2018.
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“Arcplus Group faced more than technical challenges in its
checkpoint for three regions on one spot”. The two projects took
role as designer and manager of the Hong Kong-Zhuhai-Macao
place during the same period, with the same construction conditions,
Bridge Macao Port project. Other difficulties encountered include
tight schedules and a similar scale, bringing twice the amount of
international construction modes and design practices which they
pressure or even greater. Furthermore, challenges came from the
were relatively unfamiliar with, and how to define the scope of its
different systems and laws of the three locations under the One
own role. Arcplus Group completed the design and management
Country-Two Systems mechanism and the complex interfaces and
tasks of the Macao Port with the aid of advanced management
huge volume of communication as a result of parallel appointments.
approach, strong technical capacity, efficient coordination, farsighted risk control mechanism, support of innovative technologies
Challenge 2 – Completion of detailed design in six months to meet
and an informationised system. It greatly promoted work progress
the tight schedule: It was only three years from the government’s
and successfully interpreted the important role of a design and
target completion date when the Group took over the design of the
management consultancy in large-scale complex projects. As the
Macao Port. The Macao government required the Group to submit the
Belt and Road Initiative expands, this project of the century will bring
details of the existing drawings based on the drawings by a Mainland
more diversified global business, accelerate the internationalisation
company for facilities with an area of 580,000 square meters within
of its operation and set an example of successful transformation
six months and coordinate with Mainland contractors to complete
towards a full-stage management consultancy for Chinese
the construction works. The project cycle was extremely tight.
companies who plan to go global,” said Mr Gao Shibin, head juror of the jury for the RICS Awards China 2018.
Challenge 3 – Mainland standard or Macao standard? The Macao and Zhuhai governments had problems in deciding whether the project should follow the Mainland or Macao construction model.
One island and two ports: Heavy responsibilities and numerous challenges
When first commissioned to design the Macao Port, the Group was asked to follow Macao’s technical standards and design taking into consideration the fact that the project would be completed by Mainland contractors and handed over to the Macao government for operation upon completion. This gave rise to the question of which
Before taking on this project, Arcplus Group had more than 10
standard to follow in the detailed design.
years of experience in projects such as large-scale integrated transportation hubs, sub-districts of cities and skyscrapers. The Group has gained rich experiences and developed sophisticated management tools, allowing it to become China’s leading professional management consultancy in domestic transportation hubs. Not only did it win an international contest with its original plan for a turn-key project for the Zhuhai Port, it was also commissioned by the Macao government to undertake the important task of detailed design and construction of the Macao Port.
Challenge 4 – Complex communication channels due to multiple roles and stake holders: As the project’s design and management consultant, not only was Arcplus Group responsible for the design and consultation tasks during the design stage, it also had to supervise the contractors in the construction stage. Besides the owners, Arcplus Group had to communicate with related parties, including design institutes, contractors and supervisory units. Because parallel contracting had previously been adopted for the design tasks for the Macao Port Management Area, a huge volume of communication with Challenge 1 – Double the amount of pressure from parallel
many different entities of design and management was necessary in
appointments: Both the Macao and Zhuhai Ports are located on the
the beginning of the detailed design phase.
Zhuhai-Macao Boundary-Crossing Facilities, which is China’s first dual port facility built on an artificial island created by reclamation.
Challenge 5 – Taking great risks as the project is the first one abroad:
It is named “two ports on one island, co-location joint border
The project is Arcplus Group’s first genuine overseas management
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
and consultation project that follows foreign practices and standards
advantage of the efficiency made possible by the construction plus
entirely. There were various uncertainties in technology and cost
management approach. The deadline was met by completing more
control in the project.
than 9,000 construction drawings in less than six months, allowing more precious time for production of drawings for the construction that followed and giving the owner valuable extra time for tendering.
Design as the main task: Three years of effort bear fruitful results
Strengthen on-site works supervision and creating “miracle of Macao” under the security afforded by the system: Arcplus Group actively adapted to the Macao model and learned the responsibilities
In late 2017, Arcplus Group successfully completed construction of
of a designer under the Macao approach. After the contractor started
the Macao Port within the 3-year time frame.
work on the site, the Group actively collaborated with surveyors and the supervisory entity to help the owner to supervise and manage
Assisted the Owner to decide on the Macao model through
the construction work of the main contractor and ensured that
comprehensive planning: With the owner unable to decide which
technical standards were followed. The firm played a leading role in
design standard and construction model to follow, Arcplus Group
coordination and communication in the critical aspects of comparing
made use of its network throughout China to source information,
and selecting technologies, and successfully turned the delayed
organized professionals to extensively collate the collected data
project around into an early “miracle” completion.
for research and analysis, and finally performed a comprehensive comparison of the design standards, laws and construction models of the Mainland and Macao. On the other hand, a thorough analysis was also conducted on the owner’s various professional consultants and Mainland contractors’ experiences and capabilities. This laid the solid groundwork for the Macao SAR Government’s eventual decision that the Macao design standard, works standard, and inspection standard be adopted throughout the construction process.
Sound management supported by technology During the 3-year design and construction period, Arcplus Group fully applied its vast experience and advanced management tools derived from large-scale transportation hub projects and helped the owner complete a series of improvements and enhancements to the project, bringing even greater benefits to the owner. Deploying rich professional talents to support the core team Taking the lead to optimise plans and reduce investment (costs): In
As a professional management consultation team for domestic
taking on the duties of enhancing and developing detailed design of
transportation hubs, Arcplus Group has a sophisticated project
the project, the primary task was to enhance the master plan by the
organization structure and management skeleton team, but to meet
local design unit in Macao so as to reduce the cost of construction.
Macao design standards and follow the Macao construction approach
Arcplus Group helped re-define the construction standards for
as required by the owner and take responsibility for the management
the project, enhancing and adjusting the construction plans of
and consultation services assigned by Hong Kong and Macao design
the domestic and non-domestic parking stations and master
institutes, additional professionals in transport, law and construction
transportation plan, resulting in a 20% - 30% reduction in the total
work arrangement and coordination were recruited internally and
investment (nearly MOP$3 billion) as a result.
deployed to support the core team. In addition, experienced local consultants were employed in Macao to make up for the shortage of
Making sure drawings were completed on time for smooth
professionals competent in the Macao design standard.
commencement of work: As the last of the three ports to commence construction, turnkey design management was used in the design
Project risk management guarantees completion of project
stage to link up all the design resources of the company, taking
In order to control project risks effectively, Arcplus Group assessed
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the potential risks in advance when negotiating the contract. These
confirmation would be needed during construction, the owner
risks were identified and plans devised, risk factors and mitigation
included the development of a management information system
measures were specifically included in the contract to prevent major
as one of the main contractor’s duties as advised by Arcplus
risks, ensure overall progress of the project and give service feedback
Group. After the main contractor started working at the site, As the
to the owner.
consultant, Arcplus Group provided major support to the design of
∂ Preparation work prior to signing of the contract is critical.
the information system architecture and the process of authorization
They include studying the draft contract and tender documents,
ranking. Subsequent application proved there was a significant
preparation for bidding, negotiations before contract signing, and
increase in communication rates in replies and approvals for the
a full assessment of the project risks, including agreement on the
800 or more RFIs, more than 2,000 types of material and 20,000+
proper mechanisms for handling claims and disputes.
detailed drawings with the aid of the management information
∂ A full understanding of the tender documents, especially
system, which played an important role in speeding up response and
conditions regarding inspection of construction works,
the approval process.
modification, work-related claims, advanced payment of work fees, fines for delays, performance bond and exchange rate risks. ∂ A full understanding of related local laws and policies, finance, tax, insurance and natural conditions, material prices and work site conditions is necessary so as to assess the level of risks and hazards, and formulate precautionary measures. Refinement of progress management with support of work package tools Work package progress management is a set of management tools for progress planning and tracking developed by Arcplus Group in managing a series of large-scale transportation construction projects. To deal with the major challenges in work progress of the Macao Port project, Arcplus Group allocated resources to each stage of the project and engaged dynamic management throughout the process through flexible application of the work package method. The method was extensively applied throughout the project and used by 200 personnel, at its peak, up to 120 personnel were logged on at the same time. In the progress planning phase, the whole project was divided into different packages to determine the resources needed in each stage and tracked the progress of each team; as work commenced, the schedule was closely followed. When changes and adjustments were necessary, manpower and resources
In a short space of 13 months from December 2016 to December
were deployed with the work package as the smallest unit which
2017, starting with blocks of structures being erected in the Macao
significantly minimized resource wastage caused by the changes and
Port, the main body of the Hong Kong-Zhuhai-Macao Bridge was
ensured smooth progress of the project.
fully lit in the evening on the last day of 2017, signifying that the Bridge was ready for use. On 15 March 2018, the HKZM Bridge Macao Crossing Area was officially handed over to the Macao SAR Government.
A great leap in communication efficiency under informationisation The project was carried out with the Macao construction approach. Taking into consideration the fact that large numbers of RFI
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
Internationalisation: The only path for chinese companies under the belt and road initiative
“Looking back at the entire design and consultation management process of this project, my view is that when a Chinese company goes global, the primary task is to better understand international standards and rules, train international talents and develop a full life cycle risk control system with contract management as the core. In
The Belt and Road initiative involves 26 countries and regions,
China, most of the engineering companies are at an early stage of
covering 63% of the world’s population and boasting an economic
internationalisation, they must progressively familiarise themselves
value of US$21 trillion which represents 29% of the global economy.
with the overseas construction market and construction workflow,
In 2016, the value of newly-signed engineering contracts awarded
actively try to globalise their business and strengthen cooperation
to foreign companies by the countries along the Belt and Road
with professional bodies such as RICS. As an international
route totalled US$126 billion, the total value of new contracts
professional institution in real estate and construction, RICS
China awarded to foreign companies grew 16.2% year-on-year.
represents the highest standard and most stringent regulations of
Infrastructure development along the longest economic corridor in
the sector, it trains high-quality talents for the industry and provides
the world is a blessing to large domestic engineering companies.
us with best practices around the world and the latest information. It
However, although backed by a favourable policy environment and
also gives Chinese companies the chance to exchange and cooperate
supported by ample development opportunities, domestic companies
with the world’s leading companies,” commented Ruan Zheming, the
had to deal with significant challenges in business globalization,
officer-in-charge of the Macao Port project, Deputy General Manager
religious beliefs, jurisdiction, and social and political conflicts. As
of Translator’s note: Cannot find English name of this company
the first overseas project handled by the project team of Arcplus
from Internet, Arcplus Group and Senior Vice-President of Wilson &
Group, success in the Macao Port project has helped fill a void in
Associates, Arcplus Group.
overseas project management and serves as an excellent example for companies planning to go global.
Three members of the Macao Port design consultation and management team are RICS members, they served as the project’s think tank and laid a solid foundation for the success of the project with their expertise in design consultation and management. In the process, it became obvious to many project members that the RICS standard and accreditation are advanced and recognised globally. They also strongly acknowledge the “customer-oriented” approach and professional conduct advocated by RICS and applied for RICS membership to advance their careers.
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RICS Awards China 2018
PROFESSIONAL CONSULTANCY SERVICE TEAM – REAL ESTATE
Winner
JLL
RICS Awards China 2018
RESEARCH TEAM
Winner
Cushman & Wakefield
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
RICS Awards China 2018
FACILITY MANAGEMENT TEAM
Winner
Cushman & Wakefield
Cushman & Wakefield won Facility Management Team of the Year award for its excellent real estate services
Growing importance of facility management China is late in developing its facility management industry compared with Europe and the US, but demand for professional facility management continues to grow as more and more foreign companies have entered the Mainland market. Represented by leading global real estate services firm Cushman & Wakefield, professional facility management service providers have entered the Chinese market. After an extended period of theoretical studies and practice, the significance and effectiveness of facility management are now broadly recognised by business organizations. As a supporting non-core business, facility management not only affects a company’s revenue, cost, brand and social image, it is also important to the production of its core business or services, employees’ quality of life, health and safety, work environment and asset values. Facility management has a growing impact on the promotion of and support for final goods or services, its importance in a company’s strategy is becoming gradually apparent. From an organisational perspective, the value of facility management is mainly manifested in the following aspects: 1) Improve and maintain a high quality workspace. By providing a safe, environmentallyfriendly, healthy, comfortable and people-oriented office and living space, the Facility Management Department also assists the Human Resources Department to attract and retain high-quality employees on the one hand, and helps to maximize employee efficiency on the other; 2) Increase full life cycle asset values. The ultimate goal of the professional approach and means of facility management is to increase the asset value of a company. They include full life cycle building services management, upgrading asset brand value, green building certification, application of innovative technologies, etc. A facility manager achieves the highest economic benefits by upgrading full life cycle asset values through protecting and expanding asset values;
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environmentally-friendly, safe and personalized work space. Coupled with other factors such as technological evolution and business process outsourcing, there are huge market opportunities and challenges in the facility management industry.
More stringent cost control is needed. Under the current economic environment, facility management expenditure, as an indirect cost of product (and services), affects operating cost and market competitiveness of key businesses. Companies seek professional facility management partners by contracting out its facility 3) Support development strategies and core business. The facility
management service and enhance operation efficiency and cost
manager is increasingly involved in a company’s strategic decision-
effectiveness through professional management, standardisation of
making. He or she provides facility management support for the
processes and economies of scale of material/service providers. How
formulation of development strategies, especially in the formulation
to realise continuous cost savings and a balance between cost and
of asset management strategies. The facility manager then develops
service quality are cost management issues which a facility manager
appropriate facility management strategies based on the company’s
must consider.
development strategies for promoting development of the company’s strategic and core businesses, fulfilling its social responsibilities and
New office work practices give rise to new requirements. Currently,
boosting sustainable development;
most employees of a company were born in the 80s or 90s. They have higher demands for their work environment, preferring greater
4) Ensure continuation of business in the face of unforeseen
comfort, openness and more collaboration, they are also insisting on
incidents. Major unforeseen events such as earthquake, fire,
better office maintenance and design from the facility management
typhoon, rainstorm, explosion or breaking of glass panel or collapse
department. In response, the facility manager must provide flexible
of advertisement signs not only lead to considerable loss of human
support for office space management, including hardware support
lives and property, but also suspension of production and business
system and administrative support services. Companies are also
operation, impacting society in a significant way. When affected by
beginning to value employees’ health and work-related well-being.
such incidents, a facility manager must respond properly and ensure
Office amenities that cater to employees’ experiential and emotional
continuation of business.
needs such as gymnasium, massage room, baby care room and juice bar are provided, setting new requirements for facility management.
New requirements for facility management under the new environment
Application of innovative technology. Innovative technology is playing an increasingly important role in facility management, and the industry is placing more demands on the application maturity of innovative technology. Technological concepts such as big data,
As structural transformation and innovation-driven development
artificial intelligence and block chain are gradually being applied by
takes place in the Chinese economy, companies are under pressure
the facility management industry in its quest to maintain competitive
to boost return on investment and operation efficiency and to
advantage by significantly increasing service quality and efficiency.
reduce costs. Employees have greater demands for a green,
Facility management service strategies have shifted from “business-
17
Best Practices for RICS Awards China 2018 Winning Projects and Teams
driven” to “data-driven”. By collecting, analysing and sifting through
¬ Innovative services
huge amounts of internal and external data, facility management
Facility management is a service type industry. Cushman &
service providers can forecast market demand, conduct smart
Wakefield’s facility management team has always emphasized that
analysis and decision-making, and devise more effective strategies.
awareness of team service as well as development and provision of innovative services are the keys to success. In practice, new types of service such as innovative MRO procurement, optimization of frontdesk services, promotion of a healthy office, real-time service rating and comments, and integration of the sharing mode into the office environment are employed in many aspects. Cushman & Wakefield has integrated its best practices into these customer-oriented solutions to provide customised services to customers. ¬ Technology driven Cushman & Wakefield have always striven to employ technological and informationised tools in facility management to optimize routine operation and service flow of buildings, and provide complete solutions for the full life cycle of real estates. Technological and informationised elements are included in all aspects of routine management, including smart office solutions that range from
New requirements for facility management under the new environment
environmental surveillance system, smart building system, energy management platform, space management platform, smart access, self-help printing, online booking and visitor registration. Technology is used to promote operation and upgrading of buildings to ensure
The market for facilities management is gradually expanding and
the buildings and facilities under management are in their optimal
the demand for professionalism increasing. Cushman & Wakefield
condition as far as possible. This helps to minimise consumption
is prepared to continuously update its concepts and technology to
during operation and increase efficiency by providing convenience to
compete in the ever-evolving facility management market, and to
employees who are occupants of the buildings.
raise its business and service levels to cover every aspect of the market and promote development of the industry.
¬ Research and practice Cushman & Wakefield
¬ Professionalism
actively maintains
Cushman & Wakefield’s facility management team of nearly 1,500
good communication
professionals has over 9 million square meters of company assets
and cooperation with
under its management in the Greater China Region distributed in
different kinds of trade
approximately 80 cities. The team satisfies customers’ different
associations, including
needs with its full range of complete professional service solutions.
RICS, and participants in
Value-added solutions are customized based on the company’s
activities and forums they
rich experiences in different stages of the real estate full life cycle
organise to keep abreast
and customers’ needs continuously uncovered through practical
of market changes and
operation. These customized services include testing, adjustment
the latest practice,
and acceptance service, building due diligence, benchmark analysis
share its best cases and
report, facility management training, quality management, EHS
engage in exchanges with
management, etc. Best practices are fulfilled through pragmatic
p e e rs . T h e c o m p a n y ’s
routine work and diversified value-added services.
Facility Management Department signed a strategic cooperation agreement with Tongji University’s Facility Management Research Institute to jointly explore and discuss cutting-edge issues faced by the industry and application of technology on an ongoing basis. The team has conducted benchmark analysis and investigations on all the companies under its management since 2012. In 2017, the survey scope was expanded and a report on the benchmark analysis of facility management industry was released. The purpose was to create greater value for customers’ assets with best practices as
18
the goal by setting the most appropriate standard for the facility
facility management industry. On the other hand, Cushman &
management services it provides based on the most realistic data
Wakefield’s facility management team is committed to promoting
analysis conclusion and rules.
the development of the sector, this sense of responsibility also helps promote industrial collaboration as well as development and transformation of facility management in China,” commented Mr Gao
Excellent results brought cushman & wakefield the well-deserved best facility management grand prize
Shibin, head juror of the jury.
2017 was a fruitful year for Cushman & Wakefield’s facility management team. Besides customers’ gratitude and appreciation, it also received recognition from many different trade associations, several of which are listed below: ¬ BMW Dadong project. Installation of 5S and standard signs at nearly 15,000 locations within three months from May to August 2017; ¬ In 2017, the 50,000-square-meter Huawei Langfang park reduced monthly operation expenses of nearly RMB2.5 million by adopting technological innovation solutions and slashed energy expenses of nearly RMB3 million for its customers by streamlining business needs; ¬ Concrete efforts were made to enhance customers’ experience in Huawei’s Dongguan project, they included provision of the typical “Temperature FM service” which was promoted in all other industrial parks in China. Relocation of the Huawei D5 supply chain building in Songshan Lake, Dongguan, is recognised as an excellent job, taking over of the 100,000-square-meter area and relocating more than 3,000 employees were completed in 40 days; ¬ In the Bayer project, we proposed some of the cost saving proposals under the premise of maintaining service standard, saving RMB1 million for the customer; ¬ In the past year, several hundred commendation letters were received for various projects, and there was an increase in customer satisfaction in many projects. For example, GE employees’ satisfaction score was above 97 for four straight years, and the satisfaction score for the Bayer project topped 99; With these excellent results, Cushman & Wakefield’s facility management team received the Facility Management Team of the Year award at the RICS Awards China. “With its international real estate consultation service platform and development rooted in the Chinese domestic market, Cushman & Wakefield thoroughly understands Chinese companies’ core needs and concerns for facility management services. By providing meticulous and flexible professional technology and data-driven services with the aid of technology to satisfy the needs of companies in the current era, the company is setting a successful example for China’s
Sharing experiences of success: Talents and collaboration are the keys Cushman & Wakefield’s success in facility management service lies in its systematic management experiences in real estate’s full life cycle, outstanding management of facility management talents and assistance and collaboration of customers and the market. Recruiting and retaining talents. Facility management is a compound industry which has relatively high requirements for professionals. A talent must be well versed in the theories and knowledge, have practical work experience in the sector, strong adaptability to changes, etc. Cushman & Wakefield emphasizes the recruitment and training of talents: ∆ In developing a talent pool, Cushman & Wakefield trains and develops talents at different levels through close cooperation with leading universities, vocational and technical colleges. It also helps universities and colleges put facility management theories into practice and provides job opportunities for exceptional new talents; ∆ For employee training, Cushman & Wakefield strives to remove barriers to the “last mile” of talent development. A complete talent development and benefits system is devised to promote continuous development of employees on the one hand, and ensure the stability of project teams on the other; this is to help companies become leaders in their fields. Retaining outstanding talents is the only way to raise the standard of the industry, this is achieved through provision of higher quality services. Collaborate with customers for mutual benefit, synchronous growth
19
Best Practices for RICS Awards China 2018 Winning Projects and Teams
with suppliers. Cushman & Wakefield maintains close contact with customers. A mechanism of mutual communication, collaboration and governance is devised for understanding customers’ aspirations and expectations in operation, performance management and formulation of strategies; the company also seeks to understand customers’ needs so that the quality of routine services can be continuously improved and upgraded to satisfy customers. Furthermore, Cushman & Wakefield has developed partnerships with suppliers through a sophisticated and systematic supplier management process so they can grow together and become leaders of their trades through collaboration and innovation.
Future offering: one-stop solutions For the future development of China’s facility management service market, Mr Zhang Haitao, Head of Facility Management, Greater China at Cushman & Wakefield, said: “Although facility management service in China is in a stage of continuous development, more and more domestic companies and public facility operation managers are becoming aware of the values and significance of facility management service. This developing trend brings great potential to the market. Under the domestic market environment, obviously companies’ requirements for facility management have relatively strong Chinese characteristics. The nature of service is the domestic facility management operators’ main concern; on the other hand, active development of innovative technology has transformed the modes of both facility management service and management.” As the real estate industry continues to develop actively, companies’ asset management needs has also shifted from the relatively simple mode of leased or self-owned properties to more diversified offerings. To an asset operator, property management, facility management and asset management are probably the management approaches for such diversified combinations. In order to provide customers with integrated service solutions, a facility management service provider should take customers’ needs arising from market changes into full consideration.
20
RICS Awards China 2018
FACILITY MANAGEMENT TEAM
Winner
GT Land Plaza
The key to successful facility management of China’s largest LEED O+M certified project
At the presentation ceremony of RICS Awards China 2018, GT Land Plaza clinched three important prizes, namely: a winner prize of Facility Management Team of the Year and two excellence prizes of Sustainability Achievement of the Year and Commercial Project of the Year. To satisfy the curiosity aroused by such remarkable achievements, the editor takes a peek into GT Land Plaza’s secret formula in facility management in this edition.
Certified as the world’s largest LEED O+M project GT Land Plaza is situated in the core CBD zone of Zhujiang New Town in Guangzhou. It is a huge commercial complex encompassing six projects, namely Spring Mall, Summer Mall, Middle Mall, Autumn Mall, Winter Mall and GT Apartment, with 5A office blocks, retail space, a hotel, leased apartments, residential apartments and cultural and leisure facilities. The total building area is 920,000 square meters, of which 200,000 square meters of commercial space are occupied by business blocks, and 370,000 by eight office blocks, five apartment blocks and a hotel. As the property that occupies the land above Metro Line 3, Metro Line 5 and the APM Line, GT Land Plaza enjoys unparalleled geographical advantages. The area is
21
Best Practices for RICS Awards China 2018 Winning Projects and Teams
coined the “The CBD within CBD” for its great investment value and
¬ With 99% of the office space rented out, 300,000 daily visitors at
offers the highest potential for development.
Spring Mall, a new hotel to be built in Winter Mall and apartments near the office blocks and shopping malls, high standards were
This large-scale and complex project was awarded LEED for
required for dust and noise control
Building Operations & Maintenance: Existing Buildings (LEED O+M)
¬ Above the 50-meter subway which connects B2 level of Spring
certification by the U.S. Green Building Council (USGBC) this year.
Mall and Summer Mall is a road in a busy district, so there must be a balance and coordination between offices and mall tenants,
¬ The world’s first LEED certified project in 2018;
customers, government departments, designers and work teams;
¬ The only project in Guangzhou certified for office blocks and
also, quality and safety needed to be ensured, finally, it is a race
shopping malls;
against time to meet the scheduled deadlines
¬ The commercial complex with the highest level of LEED certification
¬ Each work item is extremely challenging: hotel remodeling works
and the largest in China in terms of floor space;
involved widening of pipe wells into elevator shafts; additional
¬ The largest LEED-certified O+M project for existing buildings,
food premises in the shopping mall required adjustments of the
largest Platinum-class project and largest certified commercial
power supply and exhaust pipes; during excavation of tunnels, it
complex project in the world;
was necessary to watch out for road settlement and damage of
¬ A project with three RICS surveyors, four LEED APs and one WELL
underground pipelines; remodeling of shopping malls involved re-
AP overseeing commercial assets with an area of more than 920,000
defining fire services divisions, structural reinforcement and re-
square meters.
planning of the underground car park.
First-class facility management based on innovative technology and methods Innovation and sustainability are high on GT Land Plaza’s agenda as always. Realizing that artificial intelligence and equipment automation would be the trend of facility management, GT Land Plaza set up its Innovative Technology Department in 2016 to supervise product R&D and integration of market AI services. At As an enormous Class A complex which has operated for more than a decade, it was difficult for GT Land Plaza to include all the shopping malls and office blocks, altogether 12 independent buildings, into one single certification compared with relatively new buildings or single block developments; the challenges were immense. In the final appraisal, GT Land Plaza scored 86 and was awarded LEED’s highest level of certification. This is achieved thanks to its first-class professional capacity for equipment and facility management.
present, more than ten R&D projects have been incorporated into routine facility management, resulting in savings in manpower costs and enhancement of quality service standard. To move with the times, the company employs environmentally-friendly technology to create additional value and provide premium green business space for tenants and consumers. ¬ Recycling of air-conditioning condensed water: Condensed water are recycled and fed to the cooling tower which improves heat exchange efficiency on one hand and reduces water and electricity
Large-scale asset upgrading meant greater challenges
usage on the other. It also minimizes wear and tear of the water pumps; ¬ External lighting control: The lights are turned off automatically on sunny days and switched on when illumination is low, this saves
In 2017, GT Land Plaza commenced large-scale alteration and
electricity and manpower costs;
extension works, which included excavation of two tunnels, makeover
¬ Extensive greening of premises: Hanging gardens, natural plant
of Spring Mall, extension of Winter Mall, redevelopment of Block H
landscapes, nurseries and seedlings, vertical greening, sunken
of the Hotel into an office building, etc. These raised the difficulty of
greenbelt, outdoor automatic spraying system and indoor advanced
facility management.
automatic dripping system effectively minimize the heat island effect and improve air quality;
¬ Multiple building and construction works in progress in an area
¬ Facial recognition system is employed in Spring Mall and Winter
of more than 80,000 square metres made safety management an
Mall to enhance building security;
important task.
¬ Upgrading of carpark system by introducing full-function pay and
22
contactless payment systems: Alipay, WeChat Pay, China UnionPay,
water equivalent to approximately five standard swimming pools
NFC and cash;
annually. External light control saves electricity and manpower
¬ Property Tactic Unit: this includes proprietary fire engines, fire
expenses, reducing the 2017 energy expenses by 3% over that in
motors, a patrol fleet equipped with GPS function that covers all
2016. By using directly purchased electricity, the eight projects in
aboveground and underground properties along a distance of one
Guangzhou saved RMB15 million annually, which is equivalent to 10%
kilometre. An automatic number plate recognition system is installed
of the savings in the cost of electricity in a year;
for automatic activation of entrance barriers to facilitate entry into
¬ More premium tenants and lower vacancy rate. More than 30
and exit from the carpark and to respond effectively to typhoon, fire,
Fortune 500 companies have their offices at GT Land Plaza, including
flooding and emergencies so as to enhance safety of the property
IBM, GE, P&G, Mitsui & Co., NSC and Carlsberg. Currently, as high as
and assets;
98% of the offices are rented out;
¬ Innovative supplier management system: Separate and independent
¬ Higher customer satisfaction: A questionnaire survey was
resources, procurement and contract divisions are set up for cloud
conducted during LEED certification. The 5,259 questionnaires
storage of supplier resources to improve efficiency;
collected indicates that more than 92% of the customers were
¬ Innovative power consumption mode: direct power suppliers from
satisfied with temperature comfort level, acoustics, indoor air quality,
all parts of China are invited to provide quotations to secure a low
illumination and building hygiene.
cost power source.
Furthermore, GT Land Plaza’s excellent facility management also raised its sustainability index. In 2017, Spring Mall and Summer Mall GT Land Plaza is cooperating with leading solar power firms to jointly
received the grand prize of Sustainable Building Index Verification
develop solar power applications to further control energy expenses,
Mark award from the Guangzhou Tianhe CBD Management
reduce the heat island effect and make better use of idle space.
Committee and Hong Kong Quality Assurance Agency (HKQAA); it is also the recipient of RICS’s Sustainability Achievement of the Year award.
Remarkable effectiveness and massive efficiency Massive economic efficiency. The leased out area of Spring Mall has
Upgraded management framework strengthens the team’s coordination capacity
increased by 1,500 square metres with rent and management fee increasing by 30%; the leased out business area of the South Wing
The GT Land Plaza project became a focal point of shareholders due
of Winter Mall has increased by 12,000 square metres. Remodeling
to its uniqueness and complexity. The Quality Safety Director and
works of the high zone of Office Block H were completed three
Asset Director are tasked with ensuring safe operation, implementing
months ahead of schedule, increasing the available leasing area by
cost control measures and supervising major alteration works. The
26,000 square metres with the annual rental and management fee
project team reports work progress to shareholders, owners and
increasing by RMB60 million.
other stakeholders, and solve technical problems, including major amendments through negotiation. These help to speed up decision-
¬ Significantly lower energy consumption. The condensed water
making and implementation of various major issues and facilitate
recycling schemes of four office blocks helped the property save
work progress.
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
Due to the uniqueness and complexity of the development, the facility
management talents continues to grow. How to train and attract
management team was restructured by upgrading the existing
talent has become one of the core competitiveness in enhancing
property management division to asset service center with scope
asset value.
of duties covering the full life cycle of property assets. Reporting to the centre are property department, safety department, contract
Realizing the importance of nurturing talent long ago, GT Land Plaza
budget department, engineering department, quality inspection
has raised the professional standard of its team, which includes three
department, asset value-added department and customer services
RICS members, namely the Group CEO, Vice President (Business) and
department. All departments engage in close cooperation to ensure
Asset Services General Manager (China region). As members of the
smooth completion of the upgrading and remodelling. Externally, the
core team they formulate facility management service systems and
team coordinates with stakeholders, including the owners, project
standards; they have become the dynamic nucleus of continuous
department, design department, office department, shopping mall
innovation which is radiated to all projects throughout China.
department and sub-contractors to maintain close communication, and to make sure tenants have a suitable work environment and the
The team emphasizes nurturing of talent. In order to step up
work schedule is not affected.
facility management training, a property management manual, works management manual and safety management manual were compiled and published independently. During application for LEED certification, the GT Land Plaza team stepped up its talent training with long-term professional and systematic training provided to employees. The effort paid off, five employees received USGBC certification, and facility management professionals of internationally recognised standard were deployed to ensure value protection and value addition of projects and sustainable development of the company.
GT Land Plaza has adopted an innovative management model. A procurement department is set up to practice central procurement and tendering. The resource management department, contract management department and procurement department have clear-cut duties and are supervised by the general manager with quarterly internal audits carried out to ensure that the 3,000+ procurements of all sizes and types made annually are conducted in a fair and impartial manner. Secondly, suppliers or contractors are jointly sourced and selected by the general manager, requesting department and resource department. A suppler database has
Mr. GAO Shibin, head juror of the RICS Awards China 2018 jury,
been set up and uploaded to cloud storage to facilitate joint use by
said, “GT Land Plaza is a city complex with a total building area
different regions for different projects which increases efficiency.
of 920,000 square meters. Its enormous size, remodelling and
Currently, Guangzhou, Hunan and Hangzhou are included in this
complex upgrading and works for the diversified forms of business
scheme.
and operation were very serious challenges to facility management. However, with a proactive and professional attitude, innovative and efficient management and application of methods, as well
First-rate facility management talents ensures success In China, traditional property management mainly targets management of hygiene, security and minor maintenance and repairs. As commercial projects continue to develop and mature, especially with the appearance of large-scale integrated projects all over the country, demand for highly experienced professional facility
24
as aid of smart IT technology, the project was granted LEED platinum certification and received an RICS grand award in facility management. Most importantly, it has set an example of best practice in facility management of large integrated projects, which vindicates the importance of facility management in enhancing property value.�
RICS Awards China 2018
REGENERATION TEAM
Winner
Arcadis
Traditional style meets modern excellence: Arcadis sets the standard for topclass cost consultation
Arcadis’ exemplary work regenerating the Capella Shanghai, situated in Jian Ye Li, Xuhui District, recently impressed our judges and won them the coveted Regeneration Team of the Year at the RICS Awards China 2018. We speak to the project team behind the win to see how they did it and what this accolade means to them. As primary property markets worldwide become saturated due to land shortage, property markets in large cities have entered an era of secondary housing stocks — China is no exception. Shanghai is at the forefront of this change and plays a leading role in the country’s urban renewal. While other cities in western countries may be further along their urban-renewal journey than China, we all share a common goal: preserving the important cultural status of old buildings and enhancing their profitability after refurbishment.
A melting pot of oriental and western culture Shanghai has many historically and culturally significant buildings in its city centre. The special status of Jian Ye Li in Shanghai’s “Haipai” culture is what attracted its owner, Shanghai Hengfu Investment Development Co. Ltd., a subsidiary of Shanghai Xufang (Group) Co. Ltd. The Jian Ye Li renewal project strives to preserve the architectural characteristics of “Old Shanghai Alley” and deliver hotel guests an ultra-modern experience. The project’s design concept is to make visitors feel at home when they step into the hotel and, at the same time, experience the tight integration of Oriental and Western elements. Combining classic Chinese elements and 19th-Century French styling, rooms are decorated with French furniture and Chinese art work, which throws guests into confusion as they try to discern the time and city they suddenly find themselves in. Shanghai Hengfu Investment Development Co. Ltd. has extensive experience in building renovation. For years, they have engaged in the protection and redevelopment of historic districts and streets in Shanghai’s Xuhui District, with projects encompassing gardens, houses and new-style lilongs.
25
Best Practices for RICS Awards China 2018 Winning Projects and Teams
They chose to partner with the Capella Hotel Group to take advantage of their rich experience in old-building renovation and their appreciation of cultural elements and zealous pursuit of a modern style, both of which perfectly match the project’s aims. “The Jian Ye Li project is not only a realisation of the perfect combination of preservation and transformation of old structures, it also sets an example for other projects that rejuvenate cultural heritage buildings.” Mr Gao Shibin, Head Juror, RICS Awards China 2018
Refurbishment: not without its challenges The subject of this project is an old alley (Nong-tang) located in the city centre, which caused various obstacles for the project team, including limited space, unusable infrastructure and dilapidated structures. The first stage of redevelopment began in 2006 with a detailed inspection of the venue; the focus was on enhancing the space utilisation rate and rationalisation of the design. It was hoped that unusable parts of the venue could be removed to make room for subsequent work, that building facades would be refurbished, and that underground pipelines could be re-laid. The engineering team removed all structures in the central and eastern parts of the original building so that an underground space could be excavated. After this, the original structures were rebuilt on-site, and structural reinforcement was carried out on the western side of the building. After construction work was completed, the project suffered delays due to societal and industry concerns over the methods used to redevelop the building, which persisted for years. Fortunately, the project stood the test of time and the advantages of the redevelopment model gradually became apparent — it eventually gained industry recognition. The second stage of redevelopment started in 2015, an integrated villa-style hotel consisting of 55 blocks was constructed in the original western and central parts of the building. Forty serviced apartments were refurbished in the east side and the original rooms, with an area of 4,000 square metres, along the street were redeveloped into commercial and retail spaces. The gross floor area was 43,236 square metres, with around 150 parking spaces in the underground car park. The "Shanghai Old Alley” style was preserved in the overall appearance, adorned with traditional Chinese cultural elements and infused with modern high-tech equipment, which significantly improved hotel users’ experience.
26
More than just a cost consultant Arcadis was the construction cost consultant for both stages of redevelopment, providing quantity-surveying services, such as costs estimation, bidding, payment valuation, amendment review, and project settlement. During the project, Arcadis’ did not just “connect the different parties”; instead, they ensured smooth communications between the property owner, engineering contractor and operator, and played an active role in providing advice on the project’s mid- and long-term planning. For instance, when furnishing the interior, the hotel operator proposed solid rosewood furniture to match the hotel’s Shanghai style, which raised concerns from the hotel owner regarding cost. Arcadis, after comprehensive research and market analysis, proved to the hotel owner and other partners that this sort of furniture would not only meet Capella Hotel’s stylistic requirements, but proved that it could be purchased within the hotel owner’s budget. “Considering the uniqueness of this redevelopment project, Arcadis did not just serve as a bridge for communication, but also demonstrated a very high level of professionalism in the areas of cost consultation, technical support and crisis management.” Mr Gao Shibin, Head Juror, RICS Awards China 2018
Labour and material costs Concerning labour and material costs, it was difficult to find any current cases for reference. To reduce the chance of a price dispute, Arcadis took a down-to-earth approach, which involved on-site inspections and close communication with personnel. This laid a solid foundation for the estimation of work completion dates and various costings. These learnings will help property owners and participants save time and effort when undertaking other projects. Managing incidents Old buildings experience large numbers of sudden incidents, such as water seepage and cracking during building and construction works. This means that the possibility of changes to such projects is significantly higher than other project. To successfully complete settlement works, the project team learned that supervisors must be well-prepared to manage unexpected changes, and that smooth communication between different parties and maintaining flexibility
Lessons learned
are keys to success. Urban renewal has bright prospects in China. Jian Ye Li’s success has
As a pioneering refurbishment project in China, the considerable
changed the face of the city and, more importantly, has accelerated
technical expertise Arcadis acquired during the project can now be
the training of new, high-calibre professional talent.
used to benefit and inform the wider industry.
27
Best Practices for RICS Awards China 2018 Winning Projects and Teams
RICS Awards China 2018
REGENERATION TEAM
Winner
COFCO
COFCO Plaza sets new benchmark for “shops turn offices” under full process management concept
As it is widely known, the current Chinese real estate market has entered the “housing stock era”, “urban regeneration” mainly by way of “conversion of old buildings and expanding inventory” in central districts of first-tier cities will become the market trend of the next decade. Under this backdrop, the “shops turn offices” project of Block C, Beijing COFCO Plaza has optimized the alteration effects and successfully increased the commercial potential of the block itself and its surrounding area based on its innovative interpretation of the urban regeneration concept, and winning the prize of Regeneration Team of the Year at RICS Awards China 2018.
Scientifically determined goal of renovation As the capital of China, Beijing is dotted with all types of buildings which have appeared in the last several decades, giving it immense potential for urban regeneration. As more and more multinationals have made their foray into China, it is plain to see that “shops turn offices” projects will be in great demand. With such a large number of regeneration targets, sensibly choosing the right ones has become the cornerstone of whether the entire project will be successful in the future. The COFCO team had conducted in-depth market survey from multiple perspectives before carrying out the alteration works. Analysis revealed that due to geographical constraints, the COFCO Plaza project lacks a business atmosphere and effective customer foot traffic. Also, the relatively small size and chaotic circulation of the venue are also unfavourable to it attracting traditional leases. In contrast, the average rent of the plaza office is higher than that of other projects in the business circle due to continuous increase in the Plaza’ office turnover under the favourable macro-environment of the entire market for offices in Beijing. Based on professional interpretation of the above data, the team decided to start the “shops turn offices” project for Block C of the Plaza in 2016.
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Three-step handling of complaints
Shopping Centres
Preparation
Handling
Conclusion
Review the day’s major construction work plans at the start of each day
Conduct 4-5 inspections and two environmental air quality index measurements daily
Summarize key problems and complaints, and highlight customers and issues that need special attention each day
Offices Pre-work
Trend of total rent of shopping centres and offices in Beijing
Precautions
communication
Tiered
Pacification
customer
and
support
compensation
(Unit: RMB'00000)
Building alteration concept based on “full cycle management”
Record
Report
Summary
2. Stringent scientific procurement process: The team has developed good relationships with contractors and suppliers during the procurement for this alteration project. Partners were cautiously chosen from the procurement base. Tendering and internal
Besides maximizing natural light sources through expansion of the
assessment were carried out in the mid-stage and suppliers were
atrium to solve the problem of lighting commonly encountered in
chosen in the late stage all according to strict process and systems.
“shops turn offices” projects, the COFCO team has an innovative
A joint account was set up to mitigate the risk of embezzlement
interpretation of green design and sustainable development. In
and protect contractors’ and suppliers’ interests. Such a stringent
the course of alteration, use of land, materials, water and energy
supervisory mechanism resulted in a high completion rate of the
were reduced to the greatest extent possible in all segments of the
project and highly effective cost control.
building full life cycle from design, procurement, building, operation and management to protect the environment. 1. Sound mechanism for handling disputes: The alteration works were carried out before all the shop leases of the furniture mall of
Total alteration cost
Block C had terminated. In order to effectively solve the remaining
RMB33,413
problems and for the tenant to vacate on time, a shop vacating task
million
Amount saved due
Savings in clearance
to reduced cost and
and compensation
increased efficiency
expenses
RMB 1.5 million
RMB1.5 million
group was formed to work out the meticulous arrangements for
¬ Total time of project: 227 days
cost control, vacating schedule and process for which risk control
¬ Total savings: RMB 3 million
measures were also devised. It has been proven that assessing the situation and formulating sufficient corresponding measures before vacating a shop is the critical factor which ensured commencement
3.Alteration strategies that equally emphasize the external and
of works as scheduled and an indication of the team’s capacity to
internal: The alteration project gave the building a facelift with a
resolve disputes.
refurbished external façade and internal decoration. The altered Block C was given a transparent façade appropriate for its office
As the alteration area of Block C lies in the middle of COFCO Plaza
nature, giving it an appearance that is more consistent with the
and its underground portion connects Blocks A and B, the noise, dust
façades of Blocks A and B. The supporting pillars on the ground floor
and odour produced by alteration works would impose great pressure
of Block C create open space which enhances dialogue between the
on the office operation areas of Blocks A and B. To prevent these
building and the city, exhibiting the more open spirit of the times.
from affecting relationships with tenants of Blocks A and B, the team devised a “3-prong” solution which involved all the team members to deal with the possible complaints about environmental issues; which proved to be very effective. Unlike the alteration works of other buildings which affected the tenants emotionally, the COFCO team
Internally, Block C’s atrium boasts a creative Y-shaped design which
won the understanding and support of tenants through scientific
expands the vertical and horizontal space visually, the broad expanse
resource allocation and butler-style customer service concept.
created brings with it a breath-taking sensory experience.
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
Building Council in September 2016 and is the first office project of all old building alteration projects in Beijing being bestowed with such an honour. In April 2017, it received the Twelve Star Certificate for Green Alteration Design of Existing Buildings from the Chinese In order to achieve the best alteration results, the COFCO team’s primary strategy was to start with adjusting the business ratio of the
Society for Urban Studies, Ministry of Housing and Urban-Rural Development.
entire Block C by reshuffling the areas for different types of business.
Project asset value and lease value rose simultaneously. With the improvement in building quality, rental for the altered Block C rose 367%, from RMB3/square metre of building area per day to RMB11/ Pre-alteration floor space allocation Offices
60,000 sq. meters
Shops
4.6 sq. meters (46,000 sq. meters?)
Car parking space, building services
14,000 sq. meters
square metre of building area per day. On the other hand, rental of new leases of the unaltered Blocks A and B also increased 15% as a result of improvements in the overall environment.
Post-alteration floor space allocation Offices, coworking space
86,000 sq. meters
Supporting facilities for offices
1.6 sq. meters (16,000 sq. meters?)
Car parking space, building services
18,000 sq. meters
The percentage area of the office zone and supporting area was
Innovative 3C service system increases commercial potential
markedly increased. This not only increased the operating revenue from rentals, but also significantly enhances the service function
Alteration works was not the only focus of the COFCO team, the
which provides tenant companies with even better office experiences.
same weight was attached to post-alteration service quality and
Levels 2 to 5 were converted from shopping mall to offices and
tenant experience. During the alteration and upgrading process,
the three underground levels, G3 to G1, were assigned supporting
the team developed a 3C system for COFCO offices, which included
functions with such amenities as gymnasium, catering and business
a proprietary catering unit for office brand COFCO Life (which
conference facilities. These supporting facilities to the office zones
includes office catering, imported goods supermarket, lifestyle retail,
bring added value.
organic farm, etc.), creation of COFCO’s first themed co-working space COFCO Fantasy (which provides a “work-living-leisure and
The above meticulous alterations gave Block C a facelift, turning it
entertainment-fitness” integrated service), and development of an
into a representative masterpiece of green buildings in Beijing. The
office asset management service smart operation platform Coffice
altered COFCO Plaza has a green space ratio of 25%, with the outdoor
Housekeeper to systematically create an enclosed office and living
storm water runoff controlled with integrated ecological rainwater
ecological ring. The 3C model shows the world that the team is not
storage facilities. The interior of the building is fitted with grade
only rich in sincere and creative ideas, but capable of upgrading both
1 water-saving sanitary devices, smart electricity sub-metering
project asset value and market value.
system was introduced, and grade 1 energy-saving lighting is used for all building areas with the communal areas illuminated by a smart
Coffice Housekeeper is absolutely a jewel of the 3C system. It is a
lighting system. The HVAC efficiency is 6% higher than the national
service model based on a smart cloud operating platform with big
standard, outdoor PM2.5 concentration detection and filtering
data and Internet of Things as the skeleton which provides more
systems are installed for the new fan units. The utilization rate of
than 40 services, including express delivery, laundry, application
original components and parts is 100%, while the flexible partitioning
for repair and maintenance, healthy exercise, visitor management,
rate is 78.73%, and indoor fresh wind is higher than the international
legal consultation, food delivery, booking of conference rooms, etc.
fresh wind standard of 30%.
As of year-end 2017, 98% of the building’s tenants had registered as a user of the Coffice smart cloud operating platform; the Coffice
The project is highly commended by domestic and foreign
card offline access rate of shop tenants stood at 80%, and the smart
authoritative institutions for its excellent alteration results and
cloud operating platform application installation rate was more
outstanding contribution to environmental protection. It officially
than 10,000, driving the daily turnover of COFCO Life to more than
received the LEED-CS Gold Pre- certification from the U.S. Green
RMB60,000.
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COFFICE Card sale trend Unit ‘0 000
COFFICE Card Total sales revenue COFCO Life Sales revenue
180 160 140 120 100 80 60 40 20 0
May.
Jun.
Jul.
Aug.
Sept.
Oct.
Nov.
Dec.
Coffice Card spending from May to December 2017
Furthermore, Coffice Housekeeper is a firewall that protects the building’s safety. When selecting the access gate facility, after conducting a comprehensive research and analysis, the team decided on innovative products which can function both online and offline using a physical card, 2D bar code and remote one-touch door-opening switch. The gate employs the “Entry by Control, Exit by Sensor” method. Users access the premises by scanning the 2D bar code on the Coffice Housekeeper platform. The system conveniences users and significantly increases access efficiency by allowing “unobstructed access within Block C with a mobile phone”. With this, the 0 to 1 transformation for the asset-light operation of COFCO Plaza was completed. Implementation of the 3C system has led to greater satisfaction of tenants of all three blocks of the Plaza as well as a gradual rise in the Plaza’s building quality and market value. The system received unanimous praise and favourable comments from government institutions and the real estate sector. Upon commissioning, Block C was visited by 150 delegations with the total number of visitors exceeding 1,000, they include representatives from real estate platforms and the investment fund industry, such as CR Land, Vanke Property, Go High Investment and IDG Capital. For all the property has achieved, Mr Gao Shibin, head juror of the jury for RICS Awards China 2018, said: “Against the broader background of urban regeneration, the project team has given full consideration to whether the COFCO Plaza project is in harmony with the surrounding environment, especially respect for traditional buildings. It serves as a useful example of harmony and old and new buildings co-existing in actual practice. The sustainability techniques and green building design concepts adopted will have a far-reaching impact on the promotion and development of green buildings and sustainability in the future. It also fully highlights the genuine substance of architectural sustainability, that is, provide users with a relatively high level of comfort while reducing its energy consumption to the greatest possible extent. It is a valuable experience in the application of green technologies and will set an example in visual effects, learning and promotion for the construction of public buildings in Beijing and all parts of China.”
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
RICS Awards China 2018
CONSTRUCTION PROJECT
Winner Arcadis
Perfect integration of globalization and localization: Arcadis helps BMW complete the world’s most advanced production line
While the outstanding achievements of the winning teams of the RICS Awards China 2018 are still fresh in our memories, assessment of the 2019 event has commenced. The awards have attracted enthusiastic submissions from the real estate and construction industries as usual. In this edition, we will review the winner of the Construction Project of the Year in 2018 – the BMW Series 5 Shenyang assembly plant construction project and the behind-the-scenes enabler which has helped promote the project with excellent project management services.
Completion of BMW’s most advanced production line in Shenyang will help revitalize the economy of the Northeast region As China’s largest foreign-invested industrial project in 2014, the BMW NEX Forward Project – Assembly Plant in Dadong district, Shenyang, is a huge project with a total investment of RMB12 billion, this is auto giant BMW’s first investment of a complete automobile production line in China. Upon completion in 2017, the plant became the production base of Series 5, the 8th generation of automobiles produced with BMW’s latest technology. This symbolizes that BMW has irrevocably transferred the world’s latest production techniques and relocated the most advanced production line to China. The project was supported by and gained the attention of the Chinese and German governments and industrial leaders soon after its commencement. Officials from governments at all levels, including German Chancellor Angela Merkel, visited the site multiple times. As the largest taxpayer in Liaoning, BMW Brilliance’s plant will make an even greater contribution to the revival of the Northeast economy and alleviate local employment problems by driving development of the upper and lower stream industries as the plant began production.
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As the only manager of the project, Arcadis provided all-round
¬ Industrial projects involve advanced technologies and have a high
management services, including design management, budgeting
construction threshold. Unlike other construction projects, industrial
and costing, tendering management and procurement, contract
projects place more emphasis on ensuring the performance of
management, business management, construction works, and
process technologies and their related facilities. The technologies
operations and maintenance. The services provided have won
involved and complexity of construction are higher;
BMW’s praise and recognition, gaining Arcadis the first Outstanding Performance Award BMW has given in China in more than two
¬ World’s most advanced automotive production line means
decades, and resulting in BMW directly handing over their new project
more difficulties in construction. The project included a complete
for continuous cooperation. This has enormous significance to both
automotive production line using German automation technology
BMW and Arcadis.
with IT control and robot operation applied throughout the process. A series of innovative process technologies is also employed, raising the complexity of the construction of plants and supporting facilities as well as project management; ¬ Strict quality standards required by the German owner. Projects undertaken by German companies are known for their strict quality standards. The quality standards set by BMW for this project were some of the highest in the world. Each aspect of the project, such as detailed specifications and building material, had to match BMW’s strict quality requirement, and even subject to third-party inspection and certification; ¬ Multiple stakeholders meant challenges in communication. Due
This project is one of the largest under Arcadis’ management in
to the large scale of the project, long project period and complexity
China. It became the symbol of Arcadis’s success for its scale and
of the stakeholders involved, besides the owner, Arcadis had to
impact, bringing not only financial gains but also enhancing talent
communicate and coordinate with several dozen entities, including
training in the company. With the training they have received by
government departments, designers, service providers, material and
taking part in this important project, many of the project members
equipment suppliers and many construction firms.
have become the backbone of the company’s project management team and are now being put in charge of key projects all over China.
Managing this huge project is a major challenge
Outstanding achievement under intense pressure Despite the challenges and difficulties, Arcadis successfully helped BMW built a large car plant of the highest standard in three years on
The German Industry 4.0 strategy (which includes application of
a piece of wasteland, it was dubbed a landmark project of the auto
state-of-the-art equipment, big data, digital simulation, etc.) and
industry. The plant not only received BMW’s seal of approval, it also
Made in China 2025 is an example of deep engagement. BMW NEX
won several tens of quality awards from national quality institutes
- Forward project is BMW’s largest and technologically its most
around the world, including the coveted Lu Ban Prize, the highest
advanced automotive production line in China. With an area of nearly
honour for construction quality in China. The main achievements
1 million square meters of which 400,000 square meters are taken
include:
up by buildings and plants, the difficulties in project management are imaginable.
Cost and expense control:
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
Safety management: The highest safety standards were adopted for the project. All safety indicators were fulfilled, there was no major safety incident and a record was set with 10 million safe working hours.
Customer satisfaction: Arcadis’s efforts were rewarded with highly favourable comments from the owner. “What we dared not believe two years ago came Before commencement of the project, the German side estimated
true, and it can only happen in China!” commented Juergen Eder, the
that the cost of the project would be US$0.42 billion. Through
project general manager.
meticulous calculations and without changing the scope of work, the Arcadis team controlled the final cost to within US$0.32 billion,
Praise from BMW is the highest compliment for the Arcadis project
saving 24%! This was done through systematic management and
management team’s hard work, it also represents the German auto
integrated central tendering; none of the 22 main contract packages
industry’s recognition of the Chinese engineering and construction
exceeded their budget.
industry.
Cost estimation: Due to the effort of the Arcadis team, the accuracy of the budget estimation was within 5% of the final cost of the project - an excellent result which no other consultancy has been able to
From outstanding to excellent, innovation is the key
accomplish. To deal with BMW’s innovative techniques and satisfy its stringent Work progress management:
requirements, Arcadis employed many innovative technologies in
Arcadis overcame various difficulties and unforeseen incidents and
the construction process, such as the patented collapsible remote-
successfully helped the project met all important deadlines. The
controlled mobile ultra-high industrial plant operation technology,
12-month closedown? (capping the roof within 12 months?) of the
anti-static epoxy self-levelling floor method, two-tier steel mesh
130,000-square-meter main assembly workshop broke the previous
vibrating beam for levelling cast-in-situ concrete construction
best record for BMW plants.
measure, etc. Furthermore, Arcadis adopted unique management methods for all stages of the project, which helped the team to build on its previous success in management to reach a new level of excellence.
Quality management: The quality management system which Arcadis developed for this project is seen by the owner as a suitable benchmark for similar projects and was applied to other BMW projects around the world. For example, the quality system for the project was adopted for BMW’s project in Mexico during the same period.
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Innovative management approach: In response to the project
for the tendering to arrive at a central tendering and assessment
characteristics, including large scale, complex technology, multiple
process. The work interface was specified in the tender document
participants and mutual constraints and influence, Arcadis adopted
compilation process to ensure there was no duplication and omission
a combined central master control and regional integration
for the scope of work of the sub-contractors. This ensured that
management approach. The project management team could carry
the contractors correctly understood the owner's requirements,
out assessment and analysis of the project progress system and
maximising benefits to the owner.
dynamics at any time as needed, so corresponding measures could be adopted promptly to solve any issue that arise. For example, in
Work stage: Taking into consideration the project’s characteristics
order to avoid the project’s large scale exerting pressure on short-
and the German side’s strict quality standards, Arcadis worked with
term regional material supply, affecting work progress, Arcadis
the owner’s team, supervisors, work team and the consultants to
gave guiding instructions on regional material supply to the main
BMW to form an integrated management team. The project adopted
contractors in different regions.
all-round, 3D-management, all the components and details were implemented with each issue placed under a specific management
Pre-project planning and design stages: To ensure that the German
system.
side’s conceptual design fully satisfied Chinese design and work standards and the Chinese side’s detailed design fully embodied German design concepts, Arcadis organized joint review sessions for the designs when certain milestones were reached (30%, 60% and 90%). This fulfilled the need for seamless technical connection for the entire process. In the design, 3D models were first employed
Guarantee for success: team cooperation and personnel stability
for refined management of the spatial space. Dynamic simulation analyses were conducted for all pipeline systems, avoiding the risks under the usual experience- based practice, which increased the efficiency. Budgeting in the early design stage: As the project has a broad scope and involved many contracts, the project management team joined with the Shenyang office to form an expenditure control management team to categorise the project contracts appropriately for the best possible division management. Furthermore, the contract framework mode for civil works and the main mechanical and engineering contractor plus specific professional sub-contractors were employed and the budget and base tender of each contract package were estimated with great accuracy. As a result, the final contract value
In order to complete this highly challenging task, Arcadis deployed
and budget price were very close.
nearly a hundred of its employees to form a strong project management team which included 86 resident site staff when
Tender stage: Arcadis integrated BMW’s mandatory global standard
the project was in full swing. Overseeing the team was Arcadis’s
requirements for procurement and consulted extensively with
managing director with strong technical support and resources from
the owner and Shenyang government departments responsible
its headquarters in Europe and the Shanghai head office to ensure smooth progress of the project. In the meantime, the company’s Project Management Department and Budget Management Department closely cooperated in budget management and expenditure control, boosting progress with half the effort. Taking into consideration the enormous size and large number of divisions of the project, Arcadis implemented the mechanism of resource sharing and mutual personnel deployment and support within the project team. During the four years from 2013 to 2017, each member of Arcadis’s BMW project management team experienced strong professional growth as the project progressed. They accumulated valuable experiences and developed systematic procedural archives for
35
Best Practices for RICS Awards China 2018 Winning Projects and Teams
industrial project management through summarising and induction of project data. They become valuable assets of the company and also nurtured talents for the firm. Mutual cooperation between team members brought about a good working environment and helped maintain a high stability of the team during the project. The exceptionally low turnover rate gave strong assurance to the success of the project.
Future path for project management in China: Integration of internationalisation and localisation Success of the BMW Shenyang project has a positive influence on China’s project management industry. Not only does it show unequivocally that Chinese project management teams are capable of completing international projects with the highest quality and standard while serving world-class customers, it also is a sample project for reference.
Mr Gao Shibin, head juror of the jury of the RICS Awards China 2018, has high praise for Arcadis’s excellent performance and outstanding achievements in the BMW Shenyang project. He said, “Without doubt the success of a project requires the effective cooperation of a mix of different factors in various aspects. In particular, the core functions of project management are resource coordination and overall control, this is especially important for large projects. The BMW project is a great challenge to management with its scale, impact and technical complexity. In the project, Arcadis showed its stringent requirement, professional attitude and sophisticated expertise. It set strict requirements for detailed operation of all components and proposed solutions and precautionary measures for common issues and risks based on its rich experience. At the same time, Arcadis applied international standards and management concepts and integrated them with local management approaches and methods. By leveraging the strengths of Chinese and Western styles and complementing the weaknesses, the efficiency and effectiveness of project management were significantly increased. This is a role model which all industries and companies should learn from and promote.”
36
RICS Awards China 2018
COMMERCIAL PROJECT
Winner
Arcadis
A 10-year project – Why the grand prize went to Raffles City Hangzhou
As the selection process of the RICS Awards China 2019 moves full steam ahead, memories of the 2018 winning teams and their outstanding achievements are still fresh in our memories. This edition will review last year’s winner of the Commercial Project of the Year – Raffles City Hangzhou and Arcadis, the behindthe-scenes contributor.
New Hangzhou landmark created in anticipation of changes in real estate Many changes have taken place in the Chinese real estate industry in the last two decades, the most important was the shift from positioning commercial properties based on a plot of land’s past experiences to one centred on big data analysis. Appropriate construction and a new mode of integrated online/offline retailing have become the new foci of commercial properties. In other words, commercial property development must more precisely meet the needs of its surrounding community and at the same time apply integrated online and offline data to guide precise market segmentation and positioning. On the other hand, users’ requirements and the market for commercial properties have changed, there is a growing demand for business opulence, product diversification, one-stop and convenient services.
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
Raffles City Hangzhou was developed to commemorate the 20th
City Hangzhou was more than 95%, with units in the office tower and
anniversary of world famous real estate developer Capitaland’s entry
apartments nearly all sold. The boutique apartments were so highly
into Mainland China. The massive commercial complex was designed
sought after that all units were sold out within one week of them
ten years ago taking into consideration future market trends from
being made available, the return on investment vastly exceeded
development and operation perspectives. It was built as a Hangzhou
expectation;
landmark and has served as a benchmark of success for the real
• For the investment and financing models, despite the long
estate industry through the firm’s exceptionally strong operation
construction period, Arcadis helped Capitaland control the projected
capacity and accurate grasp of the market.
investment to within the initial cost estimation range, an outstanding accomplishment for a commercial complex project;
Raffles City Hangzhou is located in Qianjiang New Town in the heart
• The project will attract more customers to the CBD of Qianjiang
of the central business district. The complex occupies an area of
New Town when it is connected with Line 4 of the Hangzhou Metro,
more than 400,000 sq. meters, accommodating different businesses
positively impacting the economy of the vicinity;
in its different zones. It is a sustainable urban hub for living, working
• Raffles City Hangzhou is already being compared to the Mixc Mall,
and leisure which comprises stylish shopping malls, world-class
the complex will become the new landmark of Qianjiang New Town,
super Grade-A offices, a 5-star Conrad hotel, Ascott Raffles City
enhancing the overall image of Hangzhou.
elegant serviced apartment and boutique apartments. The project has attracted a high level of attention of tens of thousands in the
During the 10-year service period, Arcadis has maintained a high
industry from the day the concept was proposed.
quality and standard for its services. Not only did it help Capitaland to create the prestigious landmark Raffles City Hangzhou, it also serves as a role model of successful cost control for the industry.
Arcadis’ 10 years of continuous effort highlights the value of professional cost management As Capitaland’s strategic partner in the Mainland market, Arcadis provided whole process cost management consultancy services for five of its seven large commercial complexes. For Raffles City Hangzhou, Arcadis provided quantity measurement services from pre-development to completion of the project, including predevelopment cost estimation, tendering, dynamic cost management in the post-contract stage and completion settlement.
Arcadis received the well-deserved Commercial Project of the Year in RICS Awards China 2018 for the eye-catching project. Mr Gao Shibin, head juror of the jury, remarked: “Raffles City is a landmark among newly completed buildings in China’s commercial real estate market. The complexity of construction technology, ultra-long construction cycle and ever-changing construction industry environment in China brought with them great challenges in cost control. As the cost management consultant, the Arcadis team demonstrated professionalism and excellent problem-solving capacity to ensure successful completion of the project. They not only applied RICS professional standards and values, but also provided a valuable example and collected very useful data in the many facets of project management for the entire industry and market.”
With Arcadis’s efforts and support from all parties, Raffles City Hangzhou was successfully delivered in early 2017, fulfilling the goals of the design and planning. • The occupancy rate of shops in the shopping mall zone of Raffles
Arcadi overcame unprecedented difficulties in managing the high-end project with 3D equilibrium Raffles City is designed by Ben van Berkel, chief architect of Dutch architecture firm UN Studio. The entire building standard follows the LEED gold Pre-Certification criteria of the U.S. Green Building Council (USGBC). It is the first commercial complex project in Zhejiang province to follow the said criteria and one of a small number of commercial complexes in China equipped with 3D curtain walls, which presented immense challenges to the construction and cost management. 1. The distorted form of the façade meant a curtain wall system that greatly deviates from those of regular projects. The difficulty
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the project’s contract terms, laying a solid foundation and contract framework system for the international character of the project. Secondly, taking into consideration the rich variety of businesses and complex tender phasing of the project, Arcadis developed work interface tables jointly with the Project Division and designers in the tender stage, employing innovative methods such as contract setup and 3D tendering models for more effective cost control. Further, when unforeseen events during the construction (such as government interventions in the Hangzhou construction market and G20 summit) caused a delay in the delivery of the project and its of building conventional skyscrapers lies in the height of these buildings, on the other hand, the glass panes used in this project are curved and of different sizes, requiring installation at different angles
resultant claims, not only did Arcadis help the owner handle the case according to the contract, it also assisted in business negotiations to minimize the events' impact on the project and the owner’s loss.
to achieve the desired effects; 2. There was no standard floor, floor slab size, or die size, nor was there a normal construction positioning angle or height for the curtain wall edges and roof wind columns. In order to meet the
Two - p r o n g e d s t r a t e g y : t e c h n o l o g i c a l innovation and a new management approach
requirements for curtain wall installation, additional hurdles in coordination between civil works EPC and curtain wall contractors
The Raffles City Hangzhou project is also a masterpiece that
had to be overcome;
combines first-rate design concept and technological innovation
3. The overall construction cost was higher than those of normal
which exploits BIM technology to the fullest. The irregular forms
projects due to the above challenges and there was an absence
of the structure and complexity of the commercial complex
of benchmark references, coupled with keen competition in the
project gave rise to conflicts between design drawings of different
tendering process in China, this made project cost management
disciplines and the work interface, without adequate control, there
enormously difficult.
would be a higher probability of changes in the later stages of the contract. BIM technology was more extensively applied in the design
As the project consultant for cost control and contract management,
and works interfaces, through advanced control and supervision, the
Arcadis’s greatest responsibility was to promote equilibrium between
integrity and compatibility between the tender stage drawings and
quality, progress and construction cost throughout the construction
work drawings in the subsequent stages were raised significantly.
period from the perspective of investment management.
As estimated by the designers, extensive application of the BIM technology reduced changes by 5% to 10%.
Firstly, because of Capitaland’s background as a foreign investor and
Furthermore, the innovative management methods which Arcadis
taking into consideration its operation experiences, the different
employed in the project included:
international consultant entities and large Mainland contractors
1. Early intervention: Arcadis intervened early in the design stage to
to be appointed for the project, Arcadis advised the customer early
achieve a higher synergistic efficiency working with the design team,
in the project to adopt the internationally applicable FIDIC text as
better investment and risk control were achieved through comparing
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
alternatives, optimization of designs and value engineering studies. 2. Risk-reorientation: In the tender stage, the owner’s requirements, design standards, project construction work requirements and contract requirements were knowledgeably sorted into clear and
Putting professional values and RICS standards into practice and providing a benchmark for the industry
integrated tender requirements so criteria were provided to greatly reduce the disputes that might arise in the subsequent construction.
Arcadis has been carrying out its professional missions of whole
3. Dynamic control of costs: Changes in costs from the proposal
process cost control and contract management since entering
stage to final delivery were systematically controlled dynamically
the Chinese market more than 20 years ago. It is the first batch
throughout. Risk reminders were sent to the owner in advance,
of companies in the Chinese market to embrace the concept of
control was enforced during the construction and assistance was
whole project cost consultation, in particular high-end commercial
provided to the owner in the subsequent business negotiations.
developments and complex projects. Such a concept is consistent with the high professional standards which RICS has set for quantity measurement as well as the application of RICS systems in China. They are manifested in: First, as an independent third-party consultant, Arcadis has reasonably spread the project risks based on the principle of equality and fairness while ensuring independent professional values. This is the concept which RICS has always advocated and practised. Second, helping a decade-long project to successfully meet the cost control standard developed 10 years ago when the project was first launched is a full manifestation of the professional values promoted by RICS and Arcadis. Delivery of the project in a professional manner had impacted the market and industry, further promoting professional values.
In order to offer premium services to the customer, Arcadis adopted the service mode of “Support from Shanghai Head Office + Team work from Hangzhou branch + on-site coordination”: ¬ Completion of pre-development estimation and tendering with the huge dataset and human resources of the Shanghai Head Office, laying a solid foundation for the project and raising the chances of success; ¬ The company’s Hangzhou branch was located in the same area as the project, this arrangement facilitates the provision of postdevelopment service and prompt on-site communication, the onsite team was able to keep abreast of the latest development of the project. The staff had first-hand knowledge of the project situation and could meet the customer’s needs immediately in case of an
In the meantime, the Raffles City Hangzhou project has enabled
emergency;
Arcadis to gain ample experiences in developing and sorting out contract systems for complex commercial projects, and dealing
¬ The Shanghai office participated in auditing the final accounts
with contract issues and complicated compensation problems.
of the project, verification and supervision by the Head Office
It has also been an excellent training opportunity for the team
management ensured the customer received quality services until
members; through sincere cooperation and active coordination, the
the end of the project.
team members gained valuable and hard-won project management experience; all of them had their individual expertise enhanced. This
In vertical management, the project directors were deeply involved in
project also sets a good example for commercial real estate projects
the approval of pre-development estimations, tendering and bidding
in China and serves as a useful benchmark reference for project
plans, evaluation of the tenders, handling and business negotiations
management, including design, construction and costs.
regarding major changes and claims in the late work stage.
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RICS Awards China 2018
RESIDENTIAL PROJECT
Winner Shui On Land for Lakeville Luxe, Shanghai
Uniqueness born from multiple bold trials
How to create the best product for customers with the land available is one of the most pressing issues developers face due to dwindling land resources and tightening government policies in China. In 2018, a high-end residential project in the CBD of Shanghai caught the imagination of the market and customers with its unique awareness of customer needs and design concepts. The project is Lakeville Luxe developed by Shui On Land Limited, winner of The Residential Project of the Year at the RICS Awards China 2018.
1. Precise positioning is the key to success in the challenging macro environment In recent years, the Chinese government has not relented on its close watch on property prices and land resources. A series of market cooling measures was introduced, and developers became more prudent before developing a piece of land. The Lakeville team considers Shanghai’s position as unique in China, not only is it home to a large group of wealthy people, but it is also a regional and international financial, cultural and business centre. Through research and analysis of the affluent group who is active in Shanghai, the Lakeville team realized that this group has the intention to further improve their living condition and upgrade their home. Besides this, they also have a strong awareness of the need to diversify their assets. With such findings, the Lakeville team decided to create a high-end residential product based on the marketing strategy of “precision land use”, which is designed to make the property stand out in the highly competitive market with the best product and supporting services.
2. Phase 4 standing on giant’s shoulders Lakeville Luxe is Phase 4 of Lakeville, the high-end residential community included in the New Shanghai Xintiandi master plan. Encouraged by the marketing success of Phases 1-3 and taking into account the fact that the new phase targeted younger residents, the team placed great emphasis on customized renovation of interiors and took relevant measures in design, services and marketing. Taking this step is not easy as it meant greater input
41
Best Practices for RICS Awards China 2018 Winning Projects and Teams
of energy and a higher investment to meet different personalised
The Lakeville Luxe project team consisted of top professionals in their
needs.
respective fields who devoted themselves to this luxury development: ¬ Architectural design team: P&T Group, the legendary architectural
In exploring this kind of innovative mode, the Lakeville team piloted
and engineering practice which designed many of the classic
customized services for the 18 units of The Manor in Casa Lakeville,
buildings that still stand on the Bund
Phase 3 of Lakeville, gaining the team sound operation experience
¬ Chief interior designer: Ms Hui-Ling Hsieh, master neo-aesthetic
for Phase 4. The team was able to take even better care of the
private home designer
customers in the full lifecycle management of the residential project,
¬ Lighting consultant: BPI, the US lighting design firm responsible for
it is a product that would give residents great satisfaction.
lighting the Statue of Liberty ¬ Acoustics consultant: SM&W (Shen Milsom & Wilke) the acoustics planning consultant firm with landmark buildings in different parts of the world as its clients ¬ Smart systems: ABB, a global leader in smart automation
Phase 1 of Lakeville
Lakeville Regency, Phase 2 of Lakeville
Casa Lakeville, Phase 3 of Lakeville
technology
Lakeville Luxe respects the personality and preferences of each family and appreciates that each resident wants to lead a different lifestyle. In response to luxury property purchasers’ requirements in space, style and materials, four different customization concepts were introduced: style customization, layout customization, fit-out building material customization, and special units that are 100% customised according to the owners’ requirements. This level of customisation has become the new benchmark for Shanghai's topend residences.
The following excellent results were attained by the Lakeville Luxe project through close collaboration with the entire team and
Through ongoing review and evaluation in the first three phases, a
achieving breakthroughs by leveraging their expertise:
comprehensive one-stop service is provided for Phase 4 covering services such as flat inspection booking, moving in, buying and
Multiple community security system provides an unrestricted and
leasing and apartment maintenance. The service team strives
worry-free living environment
to provide all-round convenience to customers and hopes the
All-round professional security of the private area is ensured by
experience of the service provided throughout is a flawless one:
facilities, including smart carpark management system, digital TV
¬ Inspection for occupancy: This includes verification of the overall
surveillance system, electronic railing system, electronic patrolling
operating environment, data organisation and management, and
system, infrared/microwave detecting devices, access control
verification and management of the apartment to be occupied
system and emergency alarm buttons.
¬ Delivery service: Advanced booking and management of delivery service, on-site environmental management, home use tips, and
Security system diagram
follow-up on service improvement ¬ Residential services: Community safety and security management, management of community maintenance work, advanced booking and customization services, secretarial services, management of community environment, residents’ club services, household services ¬ Leasing services: Leasing, rent collection, rent consultation, facility management, housing maintenance, renovation consultancy ¬ Re-sale services: disposal of assets, re-sale of facilities, transfer of property rights, after-sales services
Creating ideal living dimensions through spatial innovation Starting with the most basic architectural elements, persisting with
3. Elite team of professionals creating a top-class residential product, with special attention given to every detail to create the ultimate in luxury living
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the quest for enhancing every possible detail and seeking of comfort by optimising every square inch of floor space. ¬ Effectively expands the functional interior space by replacing traditional thermal insulating walls with external ones ¬ Better lighting and ventilation with windows that span nearly 8 metres in the sitting room of some of the standard apartments
¬ interior floor to ceiling height of 3.3 m, defined as a comfortable
your own personalised routine
dimension for living space for humans
¬ provide all-round protection for homes by integrating household
¬ Underground space with a net ceiling height of up to 3.15m,
protection and auto requests for help, including break-in prevention,
accommodating large home-removal trucks
emergency alerts and real-time inspection to ensure a safe home environment
Realising natural comfort through innovation from architecture to residence Following the principles of architecture design, the overall thermal structure is optimized with multiple 3D heat insulation protection
4. Paying attention to all decoration details and promoting green life
layers from outside to inside, creating a comfortable multidimensional indoor environment, which also helps to realise
Although situated in the heart of a bustling city centre, Lakeville
sustainable development concepts, including greater energy savings
has emerged as an oasis in a metropolis, especially with its green
and environmental protection.
living concept which is manifested in every detail of the project.
¬ External thermal insulating system effectively saves energy; porous
In the construction stage, high-performance concrete and high-
fibre wall structure improves permeation
strength reinforcing steels were used. For example, HRB400 or above
¬ YKK LD60 doors and windows and low-e tempered vacuum glass
rebars represents approximately 74.4% of the main rebars, resulting
effectively limits heat radiation of the interior background in summer
in savings of about 16.7% in steel material compared with using
to ensure a more comfortable and constant indoor temperature
HRB335 rebars. Furthermore, various energy conservation measures
¬ Daikin central air-conditioning system utilises DC inverter
are promoted, including refuse treatment, rainwater collection,
technology to provide rapid and precise control of cooling and
sufficient charging points, efficient electric and mechanical devices
heating temperature, and control sensors, PIR sensors and ground
and energy-saving illumination system to promote a green lifestyle
sensors for a more comfortable air delivery
and encourage owners to cooperate with the estate management to create a comfortable living environment.
Creating a home comparable to a 5-star hotel by tapping the expertise of a professional acoustics consultant Famed acoustics consulting firm Shen Milsom & Wilke was invited to join the project team and applied a ‘5-star hotel’ sound insulation standard to the residential project. Customized acoustics solutions were applied to elevator machine rooms, outdoor airconditioning system, same level drainage, partition walls and door/ window systems to reduce noise from the building, electrical and mechanical equipment and pipelines, achieving a five-star hotel Green living diagram
air sound insulation design standard. Lighting was by world-class lighting consulting firm BPI. Based on the principle of ‘a world of light and shadow casting no visible lights’, tailor-made lighting solutions for landscape illumination, building illumination, basic
5. Detailed planning of “Residence, home, life”
lighting and functional lighting, creating a well-lit and balanced living space by mixing lights of different levels of brightness and colour
A family residence is the greatest investment in a person’s life. The
temperatures.
Lakeville team intended to create a residence not only for living, but also exemplifies an extraordinary quality of life, and provide whole
Custom-built smart living solution for the family with all-round
families with the greatest possibility for long-term planning. To this
household protection
end, the Lakeville team customized a large number of high quality
the most advanced smart systems from ABB is chosen, with the
amenities for Lakeville Luxe centring around two main themes:
option to add more smart household products in the future. The
“Home” and “Life” which match the high-end positioning of the
smart living system is tailored to fit the living habits of each family’s
product and at the same time filled with deep humanistic substance.
individual growth cycle: ¬ Comprehensive smart home system that includes smart lighting,
Renowned artists created “water” themed art pieces and decorations
electronic curtain, central air-conditioning, floor heating system and
for the East and West Clubs and secret garden of Lakeville Luxe to
background music
create artistic ambience for the community.
¬ Wireless remote control system that allows real-time management of electrical appliances, anywhere, any time
Unlike traditional clubs, Lakeville fully understands the discerning
¬ Custom-made timing mechanism for smart household equipment
taste of its high-end residents, the club is segregated into an
according to a family’s living habits, removing constraints to setting
active and passive wing to give residents the highest quality of life
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
Lakeville Gallery salutes quality lifestyle
Living with Art, an art exhibition by Matthew Liu, 2015
Since 2015, Lakeville has been cooperating with Debrett's, the “Waterfall” by digital media artist Zhang Zhoujie
“Shikumen” by contemporary artist Shi Jindian is a rearrangement of used materials from a relocated house
“Water in Dripping”, a large sculptural piece by contemporary new generation artist Zheng Lu, percolates into each corner of Club e
centuries-old authority on British etiquette. Royal etiquette coaches were employed from the UK to upgrade the mission and service standards of the service team. Co-organised events were also held, such as the Debrett's Teenage Elite Summer Camp in
a residents’ club can offer. The elegant and lavishly decorated West
2017 and Nanshufang Chinese Studies Summer Camp in 2018,
Club offers the perfect setting for entertaining guests, friends and
which emphasised both Eastern and Western cultures. These are
relatives while the East Club, with its emphasizes on nature, is ideal
opportunities for owners to experience ‘noble’ culture which has been
for those who treasure their private moments and enjoy a healthy
passed down from ancient times and will shape the next generation
lifestyle.
of Lakeville residents.
A planting activity for children held in the community in Spring
Floral art class for ladies of the houses taught by international floral master
Teenage Elite Summer Camp organized by Debrett's, the centuries-old authority on etiquette
A series of charity activities jointly organized with the Luwan Aided Learning School
The Greet the Guests Fountain gives residents and guests a sense of home coming
Comments on the Lakeville Luxe project by Mr Gao Shibin, head Magnificent lobby with a 9-meter ceiling
Luxurious private dining facility offers guests an exclusive and cordial banquet experience
juror of the jury, left a deep impression: “Personalized design in architecture is one of the factors that give it sustainable vitality,
Lakeville has cooperated closely with world-famous designers and
especially residential buildings. Right from the planning and design
artists from its Phase 1 project. The estate has sought the most
stages, the Lakeville team has considered issues from the users’
avant-garde artworks in its exhibitions and worked tirelessly to
perspective, paying special attention to every detail of each function
communicate a global high-end lifestyle through organising different
and how they can be improved. Technology is employed appropriately
kinds of cross-disciplinary, charity and parent-child activities. A
to create visually pleasing, comfortable and exclusive products. What
series of events, Lakeville Series|Hers, LakevilleSeries|His, Lakeville
is so special about the Lakeville project is its successful application
Series|Legacy and Lakeville Love, were held to create an artistic,
of personalized design concepts which allow users to enjoy and fully
tasteful and warm community for all owners.
experience during use.”
Lakeville Gallery salutes quality lifestyle
44
Living with Art, an art exhibition by Matthew Liu, 2015
RICS Awards China 2018
BEST DEAL
Winner
JLL
Foreseeing stage 2.0 In the coworking space market, JLL pulls strings for WeWork
¬ China Overseas International Center; leased area: 27,000 square metres ¬ Lujiazui Fuhui Square; leased area: 15,000 square metres ¬ Zhongchuang Building; leased area: 9,400 square metres ¬ Kerry Parkside; leased area: 7,400 square metres ¬ International Trade Centre; leased area: 6,000 square metres It may not occur to you that these office buildings with a total floor space of 64,800 square metres and located in Shanghai CBD are leased by WeWork, a world leader in space, service and community. Leasing these five office locations has not only made WeWork the largest tenant in Shanghai's office rental market, but also made front-page headlines by setting market precedents and breaking many new records. The first company to lease an entire Grade A office building for co-working space: WeWork's two transactions involving China Overseas International Center and Lujiazui Fuhui Square are the first time in China a co-working operator has leased an entire Grade A office building with a floor space of more than 10,000 square metres. The largest transaction in Shanghai's CBD office market and WeWork's biggest project in Asia: The take-up of the entire China Overseas International Center (Block B) in Huangpu District measuring 27,000 square metres in office space is the largest single transaction in Shanghai's CBD office market. The building is WeWork's biggest project in Asia Pacific and houses its Asia Pacific headquarters. Sun Hung Kai Properties Ltd. and Kerry Properties Limited to introduce co-working space for the first time: The International Trade Centre and Kerry Parkside, developments by Sun Hung Kai Properties Ltd. and Kerry Properties Limited respectively, will be their first coworking space projects in their global real estate portfolio. As Mr Gao Shibin, head juror of the jury at RICS Awards China 2018 said, “Facing brand new office business models, unprecedented leasing transaction sizes, the complexity of multiple on-going projects and a lack of precedents and prior industry experience, JLL applied its firm grasp of future office trends to conduct in-depth analysis of the office rental market and to offer professional, first-class services, creating precedents in the co-working
45
Best Practices for RICS Awards China 2018 Winning Projects and Teams
space leasing market. These representative transactions reflect the new trends in the co-working space market and demonstrate the important role played by professional service companies, as one of the market participants, in instigating reforms in the industry.”
JLL helps property owners accept co-working space business ecology by combining theory and practice The property owners in this series of transactions include China Overseas Property Group Co., Ltd., one of China's largest state-owned developers, Shanghai's biggest state-owned property owner Lujiazui Group, leading foreign developers Sun Hung Kai Properties Ltd. and Kerry Properties Limited and Nantong City's private business Jiangsu Aaron Group Co., Ltd. As co-working space was rarely found in Grade A office buildings, some of the property owners were unfamiliar with this new business model and had difficulty accepting this idea.
entire commercial real estate projects. For JLL, actions speak louder than words: they have studied the operation models of co-working
Combining theory and practice, the JLL team helped both the
space, in the hope of leading the property owners, tenants and co-
developers and property owners gain new perspectives on the
working space operators to a three-way win-win situation.
traditional values of office buildings and successfully assisted them to embrace the idea of co-working space office. They presented to the property owners new development trends in the co-working space business with detailed market research and analytical data. As the co-working space business entered its 2.0 stage, the market
JLL closes the transaction by effectively managing the differences in expectations of both parties
demand for flexible office space continued to surge, and innovative office strategies were becoming increasingly attractive to large
Because the business and operation model of co-working space
business tenants; it was expected that by 2030, flexible office space
have certain peculiarities, some of the core business terms WeWork
(including serviced offices) would encompass 30% of the whole
requested deviated from the prevailing market management. In
Grade A office market, hence office building owners need to be aware
addition, as the buildings in the transactions were all premium
of this market trend and capitalise on the emerging opportunities.
properties in Shanghai's core districts, the property owners generally had expectations of high investment returns.
On the other hand, the importance of co-working space to commercial real estate is emphasised: With tenants’ diverse office
Because the business and operation model of co-working space
requirements, co-working space would become an important part
have certain peculiarities, some of the core business terms WeWork
or “standard facility” in commercial real estate projects, similar
requested deviated from the prevailing market norms, such as
to today's food and beverage services. As a result, tying up with
the relatively lengthy leasing periods or more favourable rentals.
premium co-working space operators would help boost the value of
In addition, as the buildings in the transactions were all premium properties in Shanghai's core districts, the property owners generally had expectations of high investment returns.
Flexible Office Inclusion Rate (%)
2016
2018 Q1
2020 (forecast)
With market foresight and first-class business negotiation skills, the JLL team successfully closed the transactions smoothly with both parties fully understanding that the deal was beneficial to their long-
serviced office co-working space
term core interests: For the property owner, JLL adopted the appropriate strategy, selected the right moment to negotiate and managed the pace of the
Source: JLL *The study results were based on the average percentages in 20 Chinese cities (The total number of Grade A office buildings with flexible office space VS all Grade A office buildings); some of the projects in the study had co-working space and serviced office space.
46
negotiations so that the owner was able to make a trade-off between short-term return and long-term, stable rental income. The owner also became fully aware that high-quality clients could bring long-
term, stable rental income, and a favourable lease could increase
Since then, JLL has deepened its research into the co-working space
property value.
market, publishing related themed reports each year. It continued to lead the market's development trends and launched a dedicated
Turning to the tenant, JLL assisted WeWork to objectively and
model for its global forward-looking research “Future of Work”. In
professionally sort out and conduct in-depth investigation into the
early 2018, JLL once again revised its estimates for the co-working
target property's values while providing the client with important
space market by pointing out that China's co-working space market
strategic suggestions on items such as the cooperation framework
had entered stage 2.0 and would continue to grow, specifically this
and transaction model. In consideration of factors including the rarity
would be manifested by four major trends:
of the project, the potential scale effect and market influence, in the end, JLL recommended WeWork lease the entire Tower B of China
¬ The scope of expansion has widened and begun to spread to 1.5-tier
Overseas International Center.
cities; ¬ Market requirements have diversified and are increasing, and a
Foresee future office trends and lead stage 2.0 of co-working space business
growing number of large companies are paying attention to and using co-working space; ¬ More and more property owners and developers are participating in the co-working space market;
Founded in 2010, WeWork is the world's largest start-up by market
¬ Industry consolidation has begun, with operation capabilities
valuation and currently has 283 offices and 253,000+ members in 75
becoming a core competency.
cities located in 22 countries around the world. WeWork established its first Asian office in Shanghai in July 2016 and has subsequently expanded rapidly across the country. To date, WeWork has a total of 24 locations in Mainland China, including 13 in Shanghai. WeWork has always treated Shanghai as its major market in China, the company plans to create 20,000 positions by end of 2018. As WeWork's significant strategic partner in China, JLL has offered great assistance to WeWork in its expansion across the Chinese market. To date, WeWork has closed 10 leasing transactions of coworking space through intermediaries, including nine where JLL
With its sharp market insight and forward-looking research
acted as the tenant’s representative. JLL has become one of WeWork
analyses, JLL has not only assisted WeWork to move into Grade A
China's most trusted and important partners.
office buildings, but also offered theoretical bases and benchmarks for the industry and market development alike. Owing to its active
In addition to WeWork, JLL has developed deep cooperation with
contributions to the development and reform of the co-working
major brands in the co-working space market. In 2017 alone, it
space market, the Best Deal of the Year it received at the RICS
helped these major operators lease office space in Shanghai totalling
Awards China 2018 is most deserved.
more than 70,000 square metres–leading the industry by both the scale of transaction and quantity.
JLL has for many years built its credentials in the co-working space sector, it foresaw the market's future trends early and firmly seized the opportunities from the development trends. In as early as 2015, when co-working space was still in its infancy, JLL acutely sensed the market trend and arranged an executive trip to visit WeWork's founder and senior management in its US headquarters to learn about the business models and specific requirements for co-working space, laying a solid foundation for subsequent business development.
47
Best Practices for RICS Awards China 2018 Winning Projects and Teams
RICS Awards China 2018
BEST DEAL
Winner
CBRE
CBRE brokered the sale of Hongkou SOHO for RMB3.6 billion in just 100 days
While the splendid RICS Awards China 2018 gala evening has passed, the magnificent achievements of the award-winning teams and projects are still fresh in the minds of members of the industry. To allow people in the industry to gain a deep understanding of the outstanding performance of the awardwinning teams and projects and its reference values for the entire industry, we have launched RICS Awards China 2018 - Best Cases as a special tribute to their achievements. Through interviewing the head juror of this year’s jury and different award-winning teams’ leaders, inside stories of the RICS China Awards this year are revealed; this is to promote advanced industry experience and best practices which would promote fast and healthy development in the sector. The RICS Awards China 2018, with 11 award categories, attracted nearly 100 teams / joint teams. After a rigorous selection process and scoring by the jury, 17 emerged as winners, including 12 who were declared joint winners as they received the same marks. In this issue, we will present in detail CBRE’s China investment and capital market team which received the Best Deal of the Year Award for its role in the Hongkou SOHO project.
Market leader in commercial property en-bloc transactions China’s commercial property investment market has matured in recent years, with largescale en-bloc property transactions setting one record after another. Starting from less than RMB 100 billion in 2015, the total national transaction jumped to RMB 180 billion in 2016 and exceeded RMB 200 billion to reach RMB 230 billion in 2017 – the growth was exponential. The performance of tier-one cities was particularly outstanding, led by Beijing and Shanghai, they trounced the whole nation in the scale of transaction and activity, nearing and sometimes even exceeding major markets in Asia Pacific. Offices are still the most sought after type of property for investors, accounting for over 50% of total property transactions; among which core value-added office properties benefiting from urban renewal have in recent years captured investors’ attention. Under government policy guidance, long-term rental apartments are another popular investment option.
48
As domestic institutional capital has entered a period of building
Plaza located in Pudong, Shanghai in 2016, CBRE continued to
their portfolio of commercial property stocks, it is expected that in
leverage its business advantages to assist SOHO China to complete
the next several years, approximately RMB 1 trillion will gradually
another large transaction (Hongkou SOHO) within a short period.
flow into this segment, signifying that there is tremendous growth
The development is strategically located in the well-established
potential. According to CBRE’s annual flagship white paper, Greater
commercial area on North Sichuan Road adjunct to Shanghai Metro
China Major Report - Borderless: China Capital Market Report 2018,
Lines 10 and 4. Designed by renowned architect Kengo Kuma, the
the investment market has no absolute boundaries in cities, locations
property, a complex with offices and commercial spaces, has a
and utilisation, future investors will attach more importance to
total construction area of around 90,000 square metres of which
diversifying their selection of destination, location and property
approximately 70,000 square metres is rentable area. The property
category for investment, with niche markets such as senior housing
has received gold LEED certification and is the most prominent
and care, healthcare properties and data centres continuing to
environmentally friendly Class A office building in the commercial
attract attention.
area on North Sichuan Road. At the time of sale, Hongkou SOHO was almost fully let, with many quality tenants including Panasonic Corporation, China Pacific Insurance Co., Ltd. and SOHO 3Q, SOHO China’s shared office brand.
As an industry leader, CBRE’s China investment and capital
The sale of Hongkou SOHO was yet another big move by SOHO China
market team leverages its powerful resources and platforms, in-
following its business transformation. After fierce competition
depth market analysis and world-class professional services
among many potential buyers, the final transaction figure was settled
to help domestic and overseas investors alike seize investment
at RMB 3.6 billion, making it one of the landmark transactions in
opportunities, create sustainable competitive edges and gain high
Shanghai in 2017. According to the company’s public announcement,
investment returns. Boasting more than 40 highly experienced
this sale brought high returns and abundant cash flow for SOHO
professionals, the team provides comprehensive services, covering
China.
various fields in property investment to meet the needs of clients in over 100 cities. In 2017, the team closed 50 major investment deals
The joint acquisition of Hongkou SOHO shows that the three buyers
in Greater China, with the total transaction amount exceeding RMB
believe Shanghai’s property market will continue to grow and the
30 billion and the total transaction area over 1 million square metres.
acquired property will help meet the increasing demand for premium
One of their most successful cases was assisting SOHO China to sell
Class A office buildings in prime locations. The transaction was partly
the entire Hongkou SOHO building for RMB 3.573 billion to Keppel
a result of Keppel Land China and Keppel Capital Holdings once
Capital Holdings, Keppel Land China and another investor.
again achieving synergy (both under Keppel Corporation) by jointly acquiring a premium property located in Shanghai’s central district,
Hongkou SOHO sale sets new market benchmark
thus consolidating their market position in Shanghai and further enhancing their portfolio of commercial properties. For the other investor, the acquisition of Hongkou SOHO constituted an important step in its global asset strategic plan and helped to bolster its asset
After successfully helping SOHO China dispose of its SOHO Century
allocation in Asia Pacific.
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
Mr Gao Shibin, head juror of the jury for the RICS Awards China 2018,
team carried out a thorough analysis of the project’s tenants, down
has plenty of praise for this transaction, “The transaction of Hongkou
to such details as their nature and moving history, it was revealed
SOHO is highly representative in terms of transaction amount,
that some of them had chosen to relocate to Hongkou SOHO from
market impact, future development prospects and social reputation
offices in the core, traditional CBD. Therefore, the team repositioned
of the parties involved in the deal. In brokering this transaction,
the project as another financial and business centre in Shanghai’s
CBRE’s investment and capital market team demonstrated top
CBD, in order that the valuation could be more accurate.
professionalism and an innovative spirit; the transaction process they designed and the proposed solutions both serve as strong references for the industry.”
Achieves success with professionalism and excellent team work Public tenders offer both challenges and opportunities In this benchmark transaction, the services provided by CBRE’s investment and capital market team include initial judgement, buyer bidding, pre-negotiation, exclusive negotiation, business terms negotiation and transaction process. The whole process was fraught with challenges, one of the largest was nothing more than the property owner SOHO China’s relatively high expectations of the transaction amount – which led them to adopt open-market auction – and time. Compared with property sales through an exclusive agent or joint agents, the open-market auction strategy would brought forth intense market competition, and could lead to chaotic bidding prior to the transaction, it was a huge test of the team’s professionalism and communication and negotiation capabilities. As a highly experienced and determined team that rose to the challenge, the CBRE team was fully aware of the huge opportunities behind the challenges and immediately set about conducting a large amount of market research and analysis, in order to be one step ahead of others.
Acutely identifying potential for appreciation With excellent service and professional attitude, the CBRE team conducted a large quantity of accurate market and data analyses for this project. As this transaction would be classified as an overseas equity transaction, to ensure completeness and comparability of market data, the CBRE team reorganised the data on large transactions in the commercial area in North Sichuan Road and comparable places in the vicinity; the team also researched into the market transactions in the surrounding area to increase the data’s relevance to this case. According to their analysis, in May 2016, Qian Hai Life Insurance Co., Ltd. successfully acquired a plot of land north of this project with a planned gross floor area of 18,280 square metres for RMB 41,028 per square metre. In December the same year, another plot of land located in a straight line 600 metres from this project was sold for RMB 37,351 per square metre. The red-hot land market means an increasing number of investors are seeing strong appreciation potential in the area which predicts a sparkling future for this part of the city.
Accurate project re-positioning North Sichuan Road, where Hongkou SOHO is located, has been earmarked for a city-level commercial centre, the Shanghai government has decided to make it a distribution hub for imported products and clustering point for overseas companies to help the place regain its past glory. Hongkou SOHO was seen by the public as a yardstick for gauging the revival of North Sichuan Road. The CBRE
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Accurately grasping opportunities
Thanks to the unified effort of the entire team, despite the size
With its detailed data analysis, the CBRE team uncovered a very
and complexity, the deal, from initial negotiation, signing of the
large difference between this project’s effective rent at the time
investment memorandum, to final transaction completion, was
of transaction and the reported average rent of about RMB 10 per
completed in only 100 days, setting a new record for large equity
square metre per day in Class A office buildings in the vicinity of
transactions. This is a testament to the CBRE team’s professional
People’s Square, and the commercial area in North Sichuan Road
and accurate assessment of capital markets and deep understanding
is only 2.5 kilometres from the square, this is precisely where the
of investors.
opportunity of this project lie. After the transaction, rentals at Hongkou SOHO paid by new tenants saw a relatively large increase, which validates the team’s judgement. Precise estimations using innovative data models the team conducted a meticulous analysis and comparison of the
Partnering with rics: cbre wins the best deal of the year award two consecutive years in a row
various types of qualified investors on the market based on their fund allocation, financing capability, ability to carry out overseas
This is not the first time CBRE has received the RICS awards, at RICS’
transactions, market familiarity and past records and swiftly
first China Awards ceremony in 2017, CBRE took the lead and swept
identified potential investors. The team then utilised its years of
the field by winning seven awards, including an excellence award in
experience and successful track record, as well as assessment
the Best Deal of the Year category its investment and capital market
of the current market to simulate the property’s possible bidders,
department received for the SOHO Century Plaza project. When asked
their background and pricing capabilities and used data models to
about his feeling about receiving an award again for their role in the
accurately estimate and help the client formulate reasonable pricing
Hongkou SOHO project this time, Alan Li, CBRE’s Managing Director
strategies. This helped them win SOHO China’s trust and acceptance,
and Head of Capital Markets in Greater China, commented, “This
and eventually led them to the exclusive negotiation stage.
award means so much to us, it shows our team has beaten many strong competitors to claim the award in this category. Since RICS has an excellent industry reputation and is well known both at home and abroad, this recognition means our client-centric approach we have persisted are recognised. It is also our vision to continue to stay at the forefront of the industry by leading the real estate sector and creating a future of excellence.”
Providing full range of services through inter-departmental coordination This transaction is one that best epitomises the CBRE team’s team work and one-stop services. The team collaborated with professional research teams to conduct a detailed and comprehensive analysis of the market conditions of the project’s surrounding, the government’s policy guidance and future plans, rent levels and their potential
CBRE and RICS are long-term strategic partners and have jointly
for increase and performed precise positioning for the project for
organised training for many professional courses to move the
the client’s reference, as well as devising acceptable investment
industry forward by cultivating high-quality, professional talents.
strategies. Meanwhile, the leasing team under the office building’s
Furthermore, the two companies have co-organised industry events
owner also offered their full support by actively sharing information
to facilitate effective knowledge exchange by building international
of the first-hand office rental market, including factors such as new
platforms.
tenants’ requirements, price expectations and location preferences, and making accurate estimates of future rent increase. These data and results were subsequently vindicated by the market after closing of the transaction.
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
RICS Awards China 2018
BEST BIM APPLICATION
Winner JCM International Engineering Technology Co. Ltd and China Electric Power Research Institute
Application of BIM to the full-life cycle projects
BIM has become a part of the construction industry in China. It has been generally recognized by the industry that application of BIM technology will bring about significant change and transformation and upgrading of the sector. In this edition, we will explore the specific applications of BIM and their actual effectiveness through the Technology Research & Development Center of China Electric Power Research Institute, a recipient of RICS Awards China 2018, which has adopted the joint construction and management model.
Example of successful BIM application As a rare project in China which has applied BIM technology to the full life cycle, the project’s success is significant to the entire construction sector. “Joint Construction Management fully unleashes the advantages of BIM in integrated management of construction works besides synergising all related parties to apply such a technology to the full cycle, including design, procurement, works and maintenance. In recent years, BIM technology is increasingly gaining attention in China. Although in some projects, valuable trials were made and its effectiveness was apparent, it is usually the design entities which are applying the technology without active participation and coordination from related project parties. Furthermore, its application went no further than spatial modelling and pipeline collision testing, additional application of BIM technology is yet to materialize. In the backdrop of China actively promoting the full life cycle, success of this case has helped extend and promote the wider application of BIM technology to a higher level”, commented Gao Shibin, head juror of the jury of RICS Awards China 2018. The Technology Research & Development Center of China Electric Power Research Institute is positioned as a scientific infrastructure and supporting platform that compares to worldclass R & D institutions. The project has a building area of 85,000 square meters with 11 aboveground floors and three underground levels; the total investment was RMB0.645 billion and construction took 608 days. In the early stage, the owner commissioned Joint Construction Management (Beijing) International Engineering Technology Co., Ltd to manage the BIM-based design phase. As the effectiveness of BIM technology began to show, the owner decided to extend its application to the full life cycle of design, procurement,
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contractor, professional sub-contractors and equipment supplier Party A. The scope involves design, procurement, pre-construction preparation, construction and maintenance, thus BIM was applied vertically to the building’s full life cycle of design, procurement, construction and maintenance and horizontally to facilitate the flow of 3D, 4D, 5D and 6D data.
pre-construction preparation, construction and operation and maintenance. The results were excellent: ¬ Statistics of 1,562 spatial functions were compiled which eventually gave rise to high effectiveness in spatial use, they include information such as codes, names, elevation and area; ¬ 660 problems were found in the construction drawings which
¬ BIM-based sustainable building analysis includes daylighting
significantly minimized the need to make amendments during
solution analysis, heating and ventilation solution analysis,
construction work;
mechanical and engineering solution analysis and energy
¬ Quality of work was ensured, and the project received the Beijing
consumption analysis, etc.;
Great Wall Golden Cup Award;
¬ BIM-based collaboration includes analyses of pipeline collision,
¬ Collating RFID data of 1,800 pieces of equipment;
pipeline integration and feasibility of operation and maintenance,
¬ BIM project management was one of the candidates of the ICPMA
etc.;
“The Better Way” award.
¬ BIM-based design document version management; ¬ BIM-based procurement management includes contract interface division, etc.;
What is BIM? BIM stands for Building Information Modelling, it is an information model which coordinates design and construction of works while maintaining internal consistency by imitating actual building information with 3D digital technology. The core of BIM is sharing and integrating information of different stages, from design, costing, construction management to future real estate management. Through the participation of and collaboration between all parties, a higher project efficiency, higher building quality, reduced construction period and lower construction costs are achieved. In other words, not only is BIM a high-end technology, it is also a down-
¬ BIM-based 4D progress management includes progress imitation animation, project progress analysis and enhancement, etc.; ¬ BIM-based 5D cost management includes real time transparent cost planning, construction volume list, progress payment, automatic identification of changes and settlement upon completion of construction, etc.; ¬ BIM-based 6D operation and maintenance management includes coding integration of BIM-based operation maintenance equipment, completion of RFID labelling, frontend portable application development and backend operation and maintenance platform development, etc.; ¬ Data security is managed through a cloud server and database.
to-earth management tool.
Why apply BIM?
Challenges and solutions during BIM application Challenge 1:
In the project of the Technology Research & Development Center
Difficulties in communication and collaboration between
of China Electric Power Research Institute, Joint Construction
stakeholders. As a BIM consultant, Joint Construction Management
Management signed ten contracts on BIM application and
must communicate contract content to the owner, main contractor,
development with related entities, including the owner, main
professional sub-contractors and equipment supplier Party A to
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
ensure that all stakeholders promote the application of BIM in all stages of the project according to the contract. Besides the joint construction and management team, specific operators include teams from the owner’s infrastructure office and operation management, the team from design institute, management personnel and technicians of the main contractor and other related staff. The pressure on communication is huge. Joint Construction Management devised a closed-end communication flow which connects all parties for BIM application, making use of management flow that follows international standards. A “SMT – PMT - PIT”3-tier organization structure for collaboration was set up. The team also created an “Asynchronous and Linear Modelling Workflow” for control of workflow based on the “RICS Global Professional Guidance – International Guidance on Implementation of BIM Edition One”; “Little Big Room” was also created for fast-paced collaboration.
Challenge 4: The great variety and large number of project equipment brought great challenges to operation and management.In order to effectively increase operation and maintenance efficiency and reduce post-construction maintenance pressure, Joint Construction Management employed RFID technology to facilitate checking of information, including basic model and size of equipment, identify out-of-order equipment parts as soon as possible and provide feedback to the manufacturers for maintenance and repairs. This enhanced the efficiency of BIM application, raised facility management standard and efficiency in the project’s maintenance stage, ensured reasonable and advanced application of information technology and enhanced the quality of construction work.
Innovative technology and methods Joint Construction Management employed a number of innovative technologies in the project, which led to BIM application in the full Challenge 2:
project cycle and creation of a leading methodology in the sector.
BIM cannot accurately generate works volume lists which meet the ”Standard for Calculating Works Volume for House Building and
1. Real-time dynamic 5D cost management cloud platform.
Refurbishment Works” (2013 version): Many software packages
BIM+ Cloud computing technology + Databank technology + 3D
claim to be capable of generating BIM-based works volume lists
reproduction technology were employed to rapidly computerize list
which meet the national standard, Joint Construction Management
presentation and calculation of works volume. List presentation
notices that genuine cases are rare in actual implementation
which used to take several days previously can be done in real time
because of the lack of up-to-standard 5D models and poor
with simultaneous completion of works volume calculation, which
performance of software. Therefore, Joint Construction Management
used to take a similar amount of time. This has significantly speeded
developed its own up-to-standard 5D model and software which
up the calculation of the construction work volume lists which used
automatically reflects BIM model data and works volume lists. This
to take several weeks.
enables genuine fulfilment of works volume lists which meet the ”Standard for Calculating Works Volume for House Building and Refurbishment Works” (2013 version) through BIM models. Challenge 3: How to plan, trace, control and improve the progress of construction projects: For BIM-based 4D progress management, enhancement analysis of works progress was conducted by simulating the works progress plan of contractors and inspecting the actual progress of project work.
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2. Works cost dialogue robot. With BIM + Cloud computing +
Joint Construction Management, said, “All the BIM technology
Speech technology, project team members can obtain project
application points throughout the project can be reproduced, what
data by communicating with works cost dialogue robot through a
is difficult to reproduce is how to integrate and collaborate with all
smartphone app. The works cost dialogue robot has the following
stakeholders under the BIM environment. Besides BIM consultants,
characteristics: accurate dialogue and semantic capacities for
strategic preparation and active coordination are required of
handling enquiries about works cost; semantics-based knowledge
participants in the construction industry value chain, namely
base function which supports bulk upload of data; quick response to
architects, engineers, contractors, construction material suppliers
requests for handling huge amounts of data with ease; easy access
and operation and maintenance companies. On the one hand, they
through app downloaded to mobile phone.
must correctly understand BIM technology and consider it to be a kind of information driven project management tool for construction
3. RFID operation and maintenance management platform. With
activities; on the other hand, they must enhance the BIM talent
BIM + RFID + Cloud computing +Database technology, operation and
pool, set up a mechanism for training scientific talents and raise the
maintenance model can be accessed in 3D. Information including
creativity level of BIM talents.”
equipment location and properties can be obtained and maintenance and repair information can be integrated with RFID ID code for operation and maintenance management of equipment.
Through a series of technological innovation, Joint Construction Management was granted 10 software copyrights with two applications for patented inventions which are under review, a set of methodologies for BIM application was also devised: ¬ Design methodology: Comprehensive construction design which satisfies the requirements of construction, operation and maintenance ¬ Project management methodology: Smart project management which is data-driven, integrated, cooperative, transparent and respectful to partners ¬ Data: Full life-cycle data flow with all building elements encoded
Revelation: prerequisites for successful bim application Under the premise of China’s continuous advocacy of project full life cycle, successful BIM application by Technology Research & Development Center of China Electric Power Research Institute is certainly not unintended but the culmination of various factors, including advancement and maturing of the latest technology, proactive project management concepts that keep abreast of the times, evolution of business models and enhancement of team capability. Success of the project serves as a significant example to the construction industry but as Mr Qiu Chuang, General Manager of
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
RICS Awards China 2018
BEST BIM APPLICATION
Winner
CES INVESTMENT
CEA’s new Beijing airport project achieves success with the aid of BIM
Over the past few years, China’s civil aviation industry has experienced significant growth as the country’s economy strengthens. Simultaneously, Building Information Modelling (BIM), Big Data and cloud computing are profoundly changing the way the construction industry operates. To what extent could airport development further accelerate with the aid of BIM technologies? We look to China Eastern Airlines’ (CEA) hub in Beijing Daxing International Airport, the winner of the Best BIM Application of the Year at the RICS Awards China 2018, for answers.
A new area for BIM application Beijing Daxing International Airport is a key aviation and transportation project of China’s Thirteenth Five-Year Plan. CEA will move into the new airport — its main hub — and take a 40% share of the airport’s passenger business in the future. The project includes a hangar, vehicle maintenance base, international and domestic cargo terminals, inflight catering, ground services, offices, and other supporting facilities. It has a total building area of 1,169,800 sq. meters and an estimated investment of RMB13.2 billion. The challenges of the new airport project are numerous, including: enormous scale, tight work schedule, heavy workload and multiple entities for coordination. China Eastern Airlines has proactively tackled these challenges using information technology-based solutions and digitised management services. BIM-based technologies, including Revit, Glodon BIM5D and the Xie Zu Cloud Platform, were employed throughout the project. All the information and data collected by software from construction works were integrated through cloud servers; this made possible the linking up of data, processes and resources at different stages of the project’s life cycle, which facilitated the coordination of all participants.
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A role model for BIM application China Eastern Airlines combined BIM technology with other construction management schemes, which made it possible to integrate different technologies, including: BIM, weekly work progress reports, drone aerial photography, 3D scanning and CEA Cloud Databank. This effectively solved miniaturised management
An innovative approach
problems covering the whole process, such as the optimisation of work solutions, work coordination, and quality and safety control.
The use of BIM technology on construction projects has become more prevalent in recent years and is usually implemented by a thirdparty consultant. BIM is an effective way to accelerate progress and control risk, however, this consultant-oriented approach to project management is not without its shortcomings: ¬ Instead of engineering professionals, users of BIM technology are technicians employed by consultants. Most of them lack knowledge of construction engineering work, and have difficulty reading a drawing, so structures are not built as designed.
First, the team was upskilled by recruiting the right talent and by
¬ When a set of design drawings is completed, the next step is
engaging external BIM professional organisations to coordinate
modelling by the BIM team based on the drawings. This step is
training. The BIM Management Centre was established in just three
plagued by long processing times and high error rates because BIM
months and core members were all equipped with professional BIM
and design teams work separately. As key projects nationally, the
skills and knowledge.
approval process for airport development is relatively quick and the work schedule is usually tight, so BIM modelling and construction
Internally, China Eastern Airways introduced BIM management
works are carried out simultaneously, which gives rise to more
processes and critical technical content in the existing design
problems in the later stages.
management, cost management, progress management and
¬ With no knowledge of the technology, the owner’s management
standard contract text. The business flow and management standard
team totally relies on the BIM consultant, who cannot reasonably be
of different departments were optimised, and BIM technology and
expected to manage and assess the effects of BIM application.
construction management were deeply integrated into design, contract management, construction work control, and cost control.
Due to these, China Eastern Airlines leveraged its managerial
The BIM Management Centre also provided training for different
advantage as the owner and setup a BIM Management Centre in the
departments to ensure that employees were conversant in the use of
hub. The Centre is responsible for the arrangement and approval of
BIM software.
management systems, the approval of project funds, the guidance and management of BIM applications, and reviewing the results of BIM applications.
Externally, as the developer, China Eastern Airlines had to commission many design companies and a main contractor to work on the project. They adhered to the principles of pre-work application and ongoing control with BIM technology. Before construction work commenced, the airline worked with different companies regarding the modelling standard and depth — the model quality was checked monthly.
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
All problems detected were collated into comments and sent to the modelling team for modification. Errors were rectified during the process so that the model would not slow work progress and ensure that BIM could be promptly applied to production.
Technology innovation during construction
¬ BIM + Mobile-end application: When work was in progress, devices such as handsets and iPads, were used for inter-regional and inter-
Design in the aviation industry must satisfy certain special
departmental information exchange, communication, collaboration
requirements, such as altitude control, function adjustment and
and management. This provided the management team with real-
technology design. To accommodate these, China Eastern Airways
time updates about what was happening on work sites.
had to strengthen cooperation with external software suppliers, which instigated a series of customised BIM-based innovations:
¬ BIM + 3D scanning: This made possible the supervision and safety of the installation of the steel portal frame for the hangar.
¬ BIM-based works control: The BIM 5D platform was used for online reporting at routine supervisory meetings, which allowed all management departments to check on work progress, understand quality and safety issues, and coordinate resources at any time.
From laggard to leader China Eastern Airlines applied BIM technology to closely link up all parts of the project. BIM was applied throughout the production process, from applying BIM models to participation in design panels or routine supervisory meetings. The achievements were significant. Management flow was optimised, and resources and information were integrated, which significantly increased the control and management efficiency of the project. To improve the control of design quality, China Eastern Airlines organised sessions to select drawings and required all participating professional designers to present their work by integrating 2D drawings with 3D models to highlight the effects of design and
¬ BIM + Cloud: A virtual office cloud platform for online collaboration,
difficult areas during implementation. This practice synchronised
drawings approval and data management was created by CES
completion of the models and drawings, resulting in a harmonious
Investment Inc, the main contractor for construction works. This
relationship between the designers and model-makers on the one
meant that documents and models could be browsed and annotated
hand, and significantly improved the quality of drawings and models
digitally.
on the other.
Drawings selection session
A drawing of fire pump room
¬ BIM + Drone + Point Cloud: Drone aerial photography was employed
To control the tendering process, problems such as missing items
to record the original topography of the work sites. Based on the
in drawings and depth were detected through BIM models, this
data, a point-cloud model was produced. It was then integrated
significantly increased the efficiency and accuracy of list compilation
with Revit software to develop the foundation pit model, calculate
and ensured that the total investment was within budget.
dredging and filling volumes for earthwork, and produce 3D drawings. These helped the Budget Management Department speed up the
Compared to 2D drawings, BIM technology detects potential
calculation of the earthwork balance.
problems through virtual work so that a prompt solution can be
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provided. It also facilitates the simulation of resource planning and the supervision of work progress. The new Beijing airport project started later than China Eastern Airlines’ other airport projects because the design was behind by six months, but. with the aid of BIM technology, work progressed smoothly, and it overtook other projects during the later stages. Through the application of BIM, China Eastern Airlines lodged several proprietary patent applications and successfully applied for two BIM demonstration projects in Beijing as the main applicant.
“China Eastern Airlines applied BIM in the design and works stages of the hub project at Beijing Daxing International Airport. BIM was integrated with other technologies like cloud computing and mobile communication to fully demonstrate the unique advantages of this innovative BIM-based management approach. This will help promote the application and practice of BIM2.0 in China.” Gao Shibin, Head Juror of the RICS Awards China 2018
Positive outlook for BIM application
The success of China Eastern Airlines’ hub project at Beijing Daxing International Airport is a good example of successful BIM application. In the early phase of the project, China Eastern Airlines encouraged
As the construction industry and related technologies continue
the application of BIM to all facets of the project by actively
to develop, the trend in the industry is towards the coexistence
cooperating with software suppliers to promote technological
and integration of 2D and 3D. BIM will surely become the future
improvement and coordinating communications between all related
development trend, but the technology must overcome many
parties in the design and works stages.
challenges before further promotion and breakthroughs are possible: More importantly, due to the project’s low cost, management With immature technology, drawings for complicated construction
standard and low threshold, others will be able to learn from this
projects are unsatisfactory and incomplete models mean BIM
project and replicate its successes elsewhere.
platforms are unable to satisfy the needs of projects. A lot of effort is required for software re-development. Shortage of professional talents and difficulties in building teams. Currently, there are not enough BIM technicians conversant in construction work, there must be increased efforts to recruit, train and attract talent with overseas experience to enhance the overall standard of practitioners. Improvement in market environment needed. Different facets of construction projects are poorly coordinated; sometimes BIM platforms are reduced to nothing but empty shells. A breakthrough is needed in the current market environment to promote the informatisation of construction and determine a suitable scientific management approach so that BIM technology can effectively fulfil its role.
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
RICS Awards China 2018
SUSTAINABILITY ACHIEVEMENT
Winner
COFCO
Sustainable architecture in the backdrop of urban renewal
Urban renewal has become a trend in the inventory housing era The emergence of the middle class, upgrading of consumption and restructuring of the sector are the three main factors which has pushed China’s real estate industry into the era of inventory housing and intensively operated business. In the meantime, new land in CBD is becoming harder to come by, especially in first-tier cities, more often this has led to the situation of the faster the development, the more sluggish the primary housing market. Hence future urban development needs to be based on upgrading, alteration and renewal of existing buildings with urban renewal as the new engine of growth of urban sustainability. In the Beijing market, China has always emphasized Beijing-Tianjin-Hebei integration and industry decentralisation in recent years. However, as China develops socially and economically, the hardware, equipment and facilities of many old projects have become outdated, with serious potential operation and safety problems and energy wastage, giving a poor customer experience. They are simply not able to meet the demand for premium office space under the rapidly developing office market. In order to support the national policy and meet market demand, China National Cereals, Oils and Foodstuffs Corporation (COFCO) has acquired Sanli Building and Sanli Department Store in North Second Ring for rebuilding to fully realise the potential land value of the project site.
Greening and sustainability as foci of office ecosystem restructuring The upgrade of consumption, living and industry has catalysed the trend of urban renewal as well as emergence of new offices, driving office space providers and operators to turn their attention to the restructuring of office ecosystem. For this reason, the COFCO • Landmark team proposes the concept of intensively operated business for new offices, emphasizing post-development operation so as to create workplaces that take care of users’ emotion needs and promote user loyalty, as well as emphasize green operation and sustainable project development. The project is a Grade 5A office development comprising buildings of different heights,
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namely high (13 storeys), medium (5 storeys) and low (3 storeys), mainly for office and commercial uses plus supporting facilities. The upper ground level 1 is the lobby and commercial zone; upper ground
Greener building with the aid of ubiquitous technology
levels 2 to 12 house the office zone; basement level 1 is occupied by staff canteen and a commercial zone, with the remaining area
The project’s ultimate objectives are to create a personalized
earmarked for car park spaces and supporting services rooms.
business experience for office workers, energy-saving green office
Leveraging the geographical advantage of its location near the
environment and ideal business ecological system which integrates
Temple of Earth, COFCO • Landmark is an un-replicable high-end
business, leisure, health and social functions that are people oriented
landmark commercial complex in the capital’s core district that pays
from a brand new perspective and aided by advanced technologies.
respect to the rich cultural heritage and seeks to re-create a timeless
To achieve these goals, a number of world-leading technologies are
classic.
employed to perfectly integrate technology and art to create a unique architectural statement.
¬ Grey stone material is used for the exterior/interior walls and indoor/outdoor flooring to create a quality of subdued excellence. A great portion of the exterior walls are curtain walls, which reflect
Energy-saving and outdoor environment
the surrounding environment and integrates with it, creating a “coexistence” effect.
Utilization of underground space is appropriate, the underground area represents 226.99% of the total land area. On the other hand,
¬ Appropriate architectural scale. Though situated in the CBD of
the green area ratio of the project is expanded to 51.12% through
the capital, the buildings are designed to maintain balance with the
stratified outdoor greening + rooftop greening.
building masses along both sides of roads, including Baojing Building, instead of occupying the site as a “colossal” mass to increase the site’s plot ratio. ¬ the 60-meter “REFLECT” flying cascade in the courtyard was created by the US water feature design company WET. The creation is named the World’s Highest Indoor Water Curtain by the Guinness Book of World Records. ¬ Advocating a healthy lifestyle. Levels B1 to B6 are connected with health-fitness staircases with hanging gardens on the rooftops of the low and high buildings which echoes with the Temple of Earth. ¬ Located in the CBD of the Second Ring district, the complex will drive economic development of the surrounding area with its commercial and office functions.
Energy saving and utilization of energy The project has a multi-purpose two-layer internal ventilation curtain wall installed, which includes an energy-saving and comfortrendering system that effectively reduces electricity consumption of the air-conditioning system, enhances indoor heat comfort, effectively reduces the impact of noise from external sources, and shades sunlight by adjusting the strips on the central air cavity device. A chilled water retention system is employed as the cooling source for air-conditioning. Chilled water is generated at night time, taking advantage of the lower electricity rate for use during day time when the electricity rate is at its peak. This serves the dual purpose of decreasing grid expenditure on the peak electricity bill and reducing the operation costs of the building.
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
Energy saving and utilization of water resources Grade 1 water-efficient apparatuses are used with water meters installed according to usage to raise the water saving efficiency. An outdoor water-efficient sprinkler system is used: To save water on plant watering, a micro-spray sprinkler system and a wind/rain sensor are used for outdoor plant watering. Municipal reclaimed water is also used to achieve a non-conventional water utilization rate of 56.39%.
Tsinghua University has been invited to study the division path of molecules based on the project’s PM2.5 control. In addition, a PM2.5 control device was also built. The ternary PM2.5 filtering technology which is harmless to humans is employed to meet the standard of 35mcg/m3 specified by the World Health Organization for the entire building. In order to help people working and living in the vicinity to find car parking spaces under the pretext of controlling the expansion of the building, the project pioneers a warehouse-style 3D car parking station in the Grade A office block. The parking needs of office users
Savings on material and utilization of material resources Integrated decoration design and flexible partitioning are employed
and people in the vicinity are satisfied through a fully-automated hitech solution.
Tackling challenges through innovation
for the communal areas, making use of materials such as steel, aluminium alloys and glass curtain walls; the ratio is nearly 13%.
As a redevelopment project in Beijing CBD, COFCO • Landmark faces
Furthermore, a reinforced concrete framework-shear wall system is
many challenges and difficulties.
used, the whole structure is made from high-strength steel materials of HRB400 or above.
Indoor environment
Architectural form Located alongside the Star Gate of the Temple of Earth, the building heights must meet the height requirements specified for heritage
The indoor environment is enhanced with a noise-insulating
protection. The three different heights of 15.7 meters, 25 meters
enclosure, natural lighting and natural ventilation, and has an indoor
and 60 meters which arose out of compliance needs challenges the
air quality surveillance system installed. In order to minimize the
architectural forms, especially in the handling of rooftops. The team
impact of smog on the indoor air quality, Professor Zhao Bin of
employed an innovative rooftop garden design and three full-height courtyards to capture natural lighting. This allows office users to experience nature when working indoors; besides offering space for leisure and interaction, it also reduces indoor heat and minimizes electricity consumption for cooling and heating.
Façade design As most of the buildings on both sides of Anwai Street were completed in the 1990s when stone was the main material for the façades, for a harmonized urban landscape, the planning authority specified that stone shall be the main material for the façade. This would be contradictory to the plan to have the office building’s large expense of curtain walls covered by glass for capturing natural light, vertical stone ribs are thus used to ensure consistency with the urban landscape and satisfy the lighting needs of the offices.
Ventilation curtain walls To maintain consistency of the façades which is important to an architect, the initial plan was to install ventilation curtain walls on all four façades. This ensured the best results but the costs incurred would double. Taking into consideration the climate of the low-lying
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regions of Beijing, it was decided that the best energy-saving effect
The project has received various awards for its use of different green
would be achieved by installing ventilation curtain walls on the south
technologies and low-carbon environmental-protection building
and west. After demonstrating the cost effectiveness and rationale
space, including:
of such a technique, the architect was eventually convinced to have ventilation curtain walls installed on the south and west instead of all
1.Three-star Green Building Label, which is China’s highest green
four façades.
building evaluation standard; 2.LEED-CS precertification level (certified, Platinum), only 5% of all
Application of BIM technology
LEED certifications has achieved this standard in the world; 3.British BREEAM 4-Star Design and Post-Construction Certifications. This project is China’s first office building achieving
Throughout the design and work stages, BIM technology was applied,
BREEAM 4-Star Certification (current standard). BREEAM 4-Star
which effectively enhanced quality and efficiency. BIM technology was
Certification represents the world’s leading standard for sustainable
applied in the design and construction drawing stages for verifying
buildings, it is also the world’s first and most widely applied standard.
the design effects and helping to produce design drawings. The visual
The project has also received 5-Star Platinum Office Pre-assessment
function of the technology was also utilized to identify conflict and
Certification for China Business Office Building from the Ministry of
create a visual simulated environment for more reliable judgement
Housing and Urban-Rural Development, giving COFCO • Landmark
of on-site conditions to provide bases for progress scheduling, works
benchmark status in international commercial office buildings.
sequence, site layout and arrangement of logistics and manpower. 136 problems (errors or omissions) in the design drawings were
The impact and significance of the Landmark’s realisation of urban
identified and solved with BIM technology.
sustainable concepts are immeasurable. In this regard, Mr Gao Shibin, Jury Chairman of RICS Awards China 2018 said:
Quantifiable effects of sustainability, immeasurable future impact
Within the context of urban renewal, to a considerable extent, the COFCO • Landmark redevelopment project serves as a good example for the protection and renewal of old parts of cities and
The COFCO • Landmark project follows sustainable development
the integration of new buildings with urban design. The sustainable
concepts. Energy consumption for air-conditioning and heating was
development technologies and green architectural design concepts
reduced by 17.04% to 61.53kwh/m2.a using such devices as chilled
adopted for the project will have a far-reaching impact on the
water retention system, high-efficiency air-conditioners, variable
promotion and development of sustainable development and
speed pumps, fans, and measures such as seasonally upward-
highlight the genuine substance of sustainable architecture. The
adjusted fresh air ratio and cooling towers as the chilling source in
buildings provide users with a relatively high level of comfort with
winter. The plan is to reach an energy-saving rate of up to 32% and
significantly reduced energy consumption. The valuable experiences
a reduction in CO2 emission of 27%, which are significantly higher
gained in applying green technologies will serve as a visible, learnable
than the national and local building standards. On the other hand,
and promotable example for the construction of public buildings in
the use of non-conventional water sources such as rainwater and
Beijing and throughout the country.
recycled water will save 26080.79m³ in water consumption annually, which is a water-saving rate of 47%, this willreduces the water bill by approximately RMB250,000.
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
RICS Awards China 2018
SUSTAINABILITY ACHIEVEMENT
Winner
Arcplus Group
Block 9, Hongqiao State Guest Hotel: sustainable path for old buildings
Since China embarked on its reform and opening-up policy, the construction industry’s achievements have attracted the world’s attention. Yet the constant consumption of natural resources, a hallmark of 20th-century industrial civilization thinking, has accompanied the country’s fast-paced urban development for the last 30 years, leading to the rapid depletion of resources and extensive environmental degradation. As one of the major forces for societal development, the construction sector is a major energy consumer; construction of buildings and their energy consumption consumes approximately 50% of the world’s energy, and the debris and waste generated during construction and demolition constitute 40% of the total urban waste. Hence, achieving sustainable development in the construction field is a global challenge, which also begs the question: do we truly have high-quality structures? The Block 9, Hongqiao State Guest Hotel project (hereinafter referred to as “Block 9”), which received the Sustainability Achievement of the Year at RICS Awards China 2018, is an example of a high-quality structure.
Quality green buildings are not innate Block 9 is a Spanish-style building located inside the Hongqiao State Guest Hotel, a five-star hotel resembling a garden villa. Built in the 1950’s, the Hongqiao State Guest Hotel is one of the few garden-villa hotels in cities. With an above-ground gross floor area of nearly 3,000 square metres, Block 9 was expanded and redeveloped to become a modern office building to suit the leaser’s needs. As a near-zero energy consumption demonstration buildings in Shanghai, it is equipped with near-zero energy building design and technology provided by the Green Building Center under East China Architectural Design & Research Institute Co., Ltd. (hereinafter referred to as “Green Building Center”). Construction of Block 9 was completed on 20 August 2017, it was checked and accepted by DNV GL’s Det Norske Veritas and occupied as its Asia Pacific headquarters.
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World Bank’s relevant standards, applied sustainable development concepts and techniques to the whole construction process and built a corresponding whole-process management and organisation model. The project has provided the green construction market with a feasibility reference sample, which has great benefits in moving China’s construction industry towards sustainable development.”
Sustainable development concepts permeates the construction industry The Green Building Center followed the indicator standards provided by the World Bank: “Without compromising the occupiers’ comfort and excluding the energy consumption through sockets, the carbon emission per unit gross floor area should be less than 25 kgCO2/ (m2•a), which means the per unit gross floor area energy efficiency should be below 34.7kWh/(m2.a)”. By simulating the building performance to optimise the passive building design to reduce air conditioning and lighting energy consumption, utilising sustainable development techniques and measures such as high efficiency energy systems and equipment, renewable energy technologies and the BA system to optimise and reduce energy consumption, the energy consumption per unit gross floor area was successfully
Sustainable development is an inevitable trend for industries today; it is a significant direction and hot topic for urban engineering construction and management involving multiple areas including ecological environment, transportation, construction, energy and waste. Sustainable development is a complicated system engineering project; its concept is to reduce the environmental impact of buildings and integrate them with the environment, benefiting the occupants’ health. Its purposes are to reduce energy consumption, save water, cut pollution, protect the environment, ecosystem and health and enhance productivity, ultimately benefiting future generations.
brought down to 23.26kWh/ (m2.a), which, when compared with Shanghai’s Design Standard for Energy Efficiency of Public Buildings, Block 9, Hongqiao State Guest Hotel‘s annual energy consumption
December 2015 Commencement of project
was 68.8% lower, saving around RMB 320,000 annually; the static payback period of this project is 14 years.
April 2016 The World Bank approved the technical proposal and construction design
December 2015 Near-zero technical proposal design
October 2016 Discussions on the design proposals began
September 2016 Construction began; indoor decoration design
April 8, 2017 Norwegian Prime Minister visited the site
March 2017 Construction work completed
August 2017 Indoor decoration work completed
May 2017 Indoor decoration work started
Image 2: Development Stages of Block 9’s Near-zero Energy Consumption Redevelopment Project
Sustainable construction can have enormous economic benefits and societal impact: ¬ While planning and designing construction projects, using sustainable techniques and methods will reduce the environmental impact of construction activities and save local resources and energy, bringing continuous harmony between the environment and buildings; ¬ During the construction stage of a project, utilising environmentally friendly construction methods can significantly reduce its impact to the environment, waste generation and natural resources consumption and minimise the adverse effects of the buildings on The project gained the approval of the World Bank and was also
the indoor air quality;
included in the first batch of demonstration projects in the “Solutions
¬ In the operation and maintenance of a construction project,
to Heating and Cooling of Buildings in the Yangtze River Region”,
sustainable techniques and methods can reduce energy
a planned key R&D project in China’s 13th Five-Year Plan. On this
consumption, improve indoor air quality, maintain suitable levels of
project, Mr Gao Shibin, head juror of the jury for RICS Awards China
lighting and acoustics, guarantee the construction system’s safety
2018, gave an excellent appraisal, “Block 9, Hongqiao State Guest
and hygiene, generate less pollutants and toxic substances and
Hotel is a relatively small building in scale, but its near-zero energy
increase the efficiency in resource utilisation;
consumption modifications have great significance. In providing
¬ Employing sustainable construction measures will also ensure the
technological support, the Green Building Center followed the
construction project’s economic benefits and reduce its risks.
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
¬ High-efficiency lighting sources are used and dimmer function added: The indoor lighting power density value is lower than that proposed in the Energy-saving Lighting Design Standards for Buildings (GB50034-2013) by 10-20%; ¬ Use of Renewable Energy: A photovoltaic system is installed on the roof and mono c-Si installed on the photovoltaic panels, whose photoelectric conversion efficiency is above 15% and annual generation capacity 48MWh, the generated electricity is used for lighting and powering equipment in the office building, the rest is directly sent to the power grid;
Sustainable techniques progress with time
¬ BA integrated control system: Technologies ranging from airconditioning monitoring, lighting monitoring, window sensor control
Instead of remaining completely unchanged, sustainable techniques
and fan frequency conversion to renewable energy monitoring are
are updated with time. However, the basic principles are to ensure
applied to increase subsequent operation efficiency.
the construction location and blueprints are reasonable, the lighting and ventilation designs match the climate, the heating and lighting
The contributions of these proprietary designs for near-zero carbon
systems are energy efficient, etc. In Block 9’s near-zero energy
emission buildings to the building’s energy conservation are as
consumption construction project, the appropriate techniques and
follows:
measures recommended by the Green Building Center mainly include: ¬ High-performance enclosure design: Using triple-pane twochamber insulating glass with a heat transfer coefficient of 1.5 W/ (m2.K) and air tightness level 8 for the outside windows; compared
Main Energy-saving Measure
Technical Measure
Annual Energy Consumption (kWhx103)
Energy-saving Rate (%)
High energy-conservation standards
-
213.62
-
Natural light
Indoor natural light is utilised to the maximum to cut down the time for using lighting tools; install a tubular daylighting system
198.84
6.92%
Enclosure structures
Enhance the enclosure structure’s heat performance and increase the heat performance of the external walls and windows by over 20% by meeting the Energy-saving Design Standards for Public Buildings
184.90
6.53%
Efficient energy-saving lighting tools
Employ efficient energy-saving lighting tools with dimmer function
136.43
22.69%
Efficient coolness and heat sources
Multi-online variable refrigerants Adopt exhaust heat recovery measures
120.63
7.40%
Natural ventilation
Improves the building’s natural ventilation, reduces the use of the air-conditioning system in the transitional seasons by a total of 30 days
114.67
2.79%
Photovoltaic system
The photovoltaic installation’s capacity is 50.4kWp and the annual generation capacity 48MWh
66.67
22.47%
with Category B office buildings in Shanghai’s Design Standard for Energy Efficiency of Public Buildings (DGJ08-107-2012), Block 9’s cooling load for air conditioning was 51.5% lower and heat load reduced by 15.2%; ¬ Lighting and ventilation optimisation design measures: 66.6% of the gross floor area of the building can use natural light to meet its lighting requirement; in the lavatories and equipment and machine rooms where there is no natural light, 330MM natural light tubes were installed; in autumn and spring, the windows can be opened to make 87.9% of indoor main function space comfortable for occupants and reduce air-conditioning usage by approximately 30 days.; ¬ High-performance energy system: The system is suitable for efficient multi-splits air-conditioning systems and exhaust heat recovery technology commonly found in small office buildings,
Leading industry with innovation; green building center’s core weapon
employing the latest high-efficiency scroll compressor whose IPLV (C) is as high as 8.0 and with a full heat recovery efficiency of ≥65%;
Since its establishment, the Green Building Center has focused on green construction and its applications, product R&D and technology research of energy conservation in buildings and assigned a number of key national scientific research topics and engineering projects. At the RICS Awards 2017, the Green Building Center was the recipient of two major awards – the Professional Consultancy Service Team of the Year and the Research Team of the Year. Apart from its meticulous insights, unique, creative designs and advanced construction techniques as required by the users, the Green Building Center’s core competitiveness lies in its exceptional innovation ability.
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to ensure both the construction process and products meet the requirements. The problems detected in process management were reflected in time to the relevant units for discussion to come up with solutions, which were reviewed after amendments to confirm their design requirements; ¬ In the work completion and acceptance stage, by collecting inspection reports, conducting on-site testing, debugging and carrying out acceptance checks on the related energy saving technologies and reviewing the indicators for air-conditioning and lighting energy consumption and photovoltaic system using test data, the Green Building Center ensured the construction standards and equipment installation satisfy the requirements; ¬ In the operational stage, the user and operation and maintenance party guaranteed the building’s actual annual carbon emissions would not exceed 25kgCO2/m2 through establishing a scientific energy consumption monitoring and management system. While the above stages centred around the energy consumption indicator system, its energy saving indices, management contents and problems solved were all different, which not only took into account the energy conservation tasks in the different stages, but also guaranteed consistency in energy saving management in the different phases, making the building energy saving construction process both consistent and coherent, as well as filling the technical gaps in the near-zero energy building field. In this project, the Green Building Center innovatively applied the whole-process organisation and management model to the entire construction of Block 9 and acquired the management model for whole-process management and organisation of the pilot project. In different stages of the construction work, based on the key tasks in different stages of the building energy conservation works and referring to the energy consumption indicator system for the whole construction process, it proposed corresponding management styles and implemented whole-process building energy conservation management. ¬ In the project set-up stage, the property owner and user gave assurances to the low carbon office of Changning District, Shanghai that the project would meet the standards for near-zero carbon emission buildings; ¬ During the design stage, the overall energy savings index was
Incessant team work, ready to deal with challenges
broken down into the following parts: air-conditioning, lighting and photovoltaic system;
The biggest challenge of this project was the strict standard set by the World Bank that the carbon emissions in the unit’s gross floor
¬ During the construction stage, the Green Building Center conducted
area be below 25kgCO2/(m2•a). The colossal challenge for the Green
process management, broke down indices, reviewed and corrected
Building Center team was how to meet the World Bank’s standard
drawings, simulated and compared the energy consumption
considering Shanghai’s climate, and to ensure that the technical
indicators, performed equipment parameter review and sample
measures are promotable and replicable, and the passive and active
testing and carried out regular inspection of the construction site
building designs have been taken into account.
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Best Practices for RICS Awards China 2018 Winning Projects and Teams
The project team integrated its professional staff and divided the tasks among them, detailed research plans were and regularly formulated and the results and difficulties communicated with one another. Externally, the team was able to fully integrate external resources, communicate with multiple parties including the service targets, property owner and the design, operation and management teams to organise events such as cooperation activities and seminars, so as to ensure that the research results were feasible and practical. Concerning the standard for the indoor index reading of PM 2.5, the team considered a whole host of factors by collecting the outdoor air
expanded with new topics ranging from ecological cities and healthy
quality indices and relevant office environment data from Shanghai
buildings to ultra-low-energy buildings, so people in the industry feel
over the past three years. After conducting large amounts of analysis
the pressure to continue to learn to improve their own knowledge and
and performing ample calculations, the team gradually quantified
skills, stay ahead of the field and push the development of China’s
the originally vague project requirements, converted the figures into
green building industry forward.
detailed requirements for the building design and then proposed feasible solutions, thus realising high-quality ecological operations
Fortunately, since the Chinese government released the first
for the building.
Evaluation Standards for Green Buildings, this top-down effort has yielded good results, incentive policies from different levels of the government are continually being launched, and a green building
Advancing china’s green building development by following global standards
standard system is gradually being developed. The number of green building labels continues to rise and the public’s attention to green construction has exploded. As of the end of 2017, China’s accumulated green building area has reached 1.2 billion square
Yan Yan, head of the Green Building Design and Technology Consultation Research Institute at East China Architectural Design & Research Institute Co., Ltd., commented, “The international standards advocated by RICS have widened our horizons; the institution progresses with the times by staying highly sensitive to new technologies and development directions in the industry, enabling our team to master the sector’s latest technologies. Concurrently, RICS’s rigorous approach and professionalism have led our team to approach projects with a research mentality and view the project requirements with a long-term vision.” Technology is developing at light speed in the green building arena; this field is also cross-discipline, cross-sector, integrated and highly applicable. With the constant emergence of new concepts and technologies, the boundaries of knowledge are constantly being
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metres.
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