MODUS Asia Edition Q3 2014 by ROF Media

MODUS Q3 2014 RIC S A SI A .ORG/MODUS A SI A THE PL AY ISSUE

Q3 2014 ricsasia.org/modusasia

THE PLAY ISSUE COVER STORY

BIM is much more than a toy. Discuss / 16

HOUSE MASTER

Hong Kong Housing Societyâ&#x20AC;&#x2122;s Marco Wu / 22

SPECIAL FX

Surveying tech makes it big in Hollywood / 26

Contents MODUS Q3 2014 RICSASIA.ORG

06 DIFFERENCE OF OPINION What needs to be done about China’s increasing levels of air pollution? We hear two points of view 07-15 NEWS IN BRIEF Essential industry news, advice and information for RICS members 08 THINKING: DR BENNY CHOW Why China’s quantity surveyors would be wise to back BIM 13 PRESIDENT’S COLUMN Louise Brooke-Smith FRICS kicks-off her year in office

Features

Intelligence

RICHARD SAXON FRICS BIM DEBATE, P16

Foundations

“BIM is astonishingly potent – we haven’t even started understanding what it can do yet. If we look at the car industry, where these techniques were introduced in the 1990s, the productivity jump has been colossal”

16 ARE WE READY TO PLAY? BIM’s greatest challenge isn’t software or hardware … it’s human nature

44-45 CAREERS Ensure your CV is up to scratch, Rider Levett Bucknall’s Philip Lo FRICS

22 HOUSING HONG KONG Profiling Marco Wu FRICS, chairman of the Hong Kong Housing Society

46 BUSINESS Retirement looming? How to ensure a smooth transition as you leave your business

26 FXRICS Geomatics’ special effect on film industry

47 LEGAL 101 Contract extensions for adverse weather conditions

30 CENTRE STAGE Facilities managers step into the limelight 34 LONDON’S BIG DIG RICS members at work on Crossrail project 40 TOO GOOD TAPAS UP ON Opportunities for surveyors in Spain 42 FROM ZERO TO HERO The University of Technology Sydney’s new Broadway building

48 BRAIN GAIN Anna Thompson MRICS’ guide to BIM 50 MIND MAP Ramsey Tadros FRICS of Sonae Sierra Brasil on attracting investment into the country PLUS 49 Events

Views expressed in Modus are those of the named author and are not necessarily those of RICS or the publisher. The contents of this magazine are fully protected by copyright and may not be reproduced in any form without the prior permission of the publisher. All information correct at time of going to press. All rights reserved. The publisher cannot accept liability for errors or omissions. RICS does not accept responsibility for loss, injury or damage or costs that result from, or are connected in any way to, the use of products or services advertised. All editions of Modus are printed on paper sourced from sustainable, properly managed forests. This magazine can be recycled for use in newspapers and packaging. Please dispose of it at your local collection point. The polywrap is made from biodegradable material and can be recycled.

Q3 2014_MODUS A SI A

Standards-based valuations result in consistency, dependability, and results clients can trust. When clients engage with Colliers International, they’re working with a company that understands the importance of valuation in today’s growing market. Having a principles-based valuation framework in place – such as RICS Valuer Registration – is critical in providing clients with the quality, dependable valuations they require. To produce this vitally important information and offer the best service level possible, Colliers is registering its valuers for RICS Valuer Registration. RICS-accredited valuers are governed by the rigorous RICS Red Book standards, and conduct themselves by a stringent code of ethics. This allows valuers to produce the most comprehensive and consistent valuations possible within a quality-controlled, professional environment, and provide clients with results they can trust.

“Colliers International’s clients demand outstanding service and qualified, dependable support in all that we provide. RICS Valuer Registration helps us demonstrate our commitment to excellence by adding rigorous external auditing to our already-strict internal quality controls, ensuring Colliers’ clients receive the best valuation services being performed today.” Piers Brunner FRICS,

Chief Executive Officer, Asia, Colliers International If you are a ﬁrm wishing to register multiple valuers and/or a member who has further queries, please contact RICS Regulation Asia Paciﬁc at +852 2116 9713 or regulationasia@rics.org. You can register online through the RICS members’ portal: https://memberschemes.rics.org.

rics.org/valuerregistration 04

RICS.ORG/MODUS

Feedback USEFUL RICS NUMBERS CONTACT CENTRE +852 2537 7117 Enquiries / APC guidance / Subscriptions / Events / Training / Bookshop REGULATION HELPLINE +852 2116 9713 CONFIDENTIAL HELPLINE +44 (0)20 7334 3867 DISPUTE RESOLUTION SERVICES +44 (0)20 7334 3806 UK SWITCHBOARD +44 (0)20 7222 7000

Join the debate REACTIONS AND RESPONSES FROM PREVIOUS ISSUES

Do you have an editorial comment about this issue of Modus? Please email editor@ricsmodus.com. FOLLOW THE LEADER Sir, Inspired by Martin Miller’s and Hugh Tippett’s advice in Modus (Global edition, April, page 9), I have decided to elaborate on their viewpoints on leadership. I feel that, in an ever-moving and hectic city such as London, the small details are generally missed, even though their impact can be great. What marked Alexander “The Great” has to be attributed to three extremely undervalued qualities: Understanding The ability to empathise. Psychology is becoming an increasingly attractive qualification within leading roles. The ability to truly understand one’s workforce enables a leader to get the best out of the resources at hand. Passion Every great leader has to lead from the front, and there should be no exception within surveying. Leading by example is an old cliche that strikes true in the heart of business. In-house inspiration builds a sense of belief around you. Value For every role in which we take part, away from or at work, we all seek to be valued in some way or another. Not only is this important for self-belief and confidence, but those who feel appreciated are always more willing to go the extra mile – the difference between being good and exceptional. Samir Faiad Graduate surveyor, Enfield, UK

@RICSAsia // #RICSmodus @outsidewrecker4 Good debate “@andrew_ brister: chairs for #RICS @modusmag on cultural obstacles to #BIM adoption.” @Steven_Ramage @modusmag there’s also a good business case for using geospatial standards in NZ from #OGC plugfest in #Christchurch @Mvandervlugt @ShyamVisavadia I couldn’t agree more

#GenY we need to embrace young people within the work place @modusmag @AlisonFS5 Reading my new @modusmag.

Better than watching the snooker! #Watchingpaintdry #cpd #knowledge @Ashville_Group @modusmag it’s great to see recognition of the importance of air quality, light, ceiling height and natural ventilation for staff wellbeing @TrendProjects What if construction firms could ‘3D print’ entire houses? Via @modusmag bit.ly/1faR5jj #design @RICSnews Thank you to the members and staff of #RICS Asia who collected $4,000 for @UNICEF at recent CPD events.

MISSING LINCOLN Sir, I notice that Robert Burns is now an Honorary Chartered Surveyor (Asia Q2 edition, page 4 and Global edition, March, page 4). How about Abraham Lincoln? I understand that he measured and sorted out land boundaries in court prior to switching to become a lawyer and eventually President of the United States. Vic Ray MRICS BETTER LATE THAN NEVER Sir, I was interested to see Vic Ray’s comment (Global edition, April, page 4) on Abraham Lincoln’s surveying exploits. When in Virginia this year, we went to Ferry Farm, the childhood home of George Washington. Chartered surveyors in the USA must be proud to know that their first president was a surveyor before he became their leader. Perhaps we should consider awarding honorary membership to George Washington? It would certainly raise RICS’ profile in North America. Barry Gilbertson FRICS RICS President 2004-05

MODUS ONLINE

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FOR SUNDAY Editor Oliver Parsons / Art Director Christie Ferdinando / Contributing Editor Brendon Hooper / Production Editor Andy Plowman / Junior Designer Isabella Fernandes / Creative Director Matt Beaven / Account Director Karen Jenner / Account Manager Wesley Kirschner / Advertising Sales Director Charlotte Turner / Asia Advertising ROF Media, Bryan Chan, +852 3150 8912, bryan@rofmedia.com / Production Manager Michael Wood / Managing Director Toby Smeeton / Repro F1 Colour / Printers ROF Media / Cover illustration Totto Renna / Published by Sunday, 207 Union Street, London SE1 0LN sundaypublishing.com / FOR RICS Kate Symons and Mark Goodwin [UK] / Roy Ying and Jeanie Chan [Asia] ricsasia@rics.org

Q3 2014_MODUS A SI A

Intelligence

News / Reviews / Opinions / Reactions

DIFFERENCE OF OPINION

What are the most sustainable ways of tackling air pollution in China? Discuss.

CLEARING THE AIR Complaints about air pollution in Beijing more than doubled in the first five months of this year, highlighting how concerned the Chinese population is becoming about the need to tackle the issue

I N M ARCH 2014, C HINA RELEASED THE NEW U RBANISATION P LAN as an engine for economic growth. This aims to strengthen the management and control of urban planning, accelerate the construction of green cities, and implement air pollution control plans to improve air quality. As outlined in the plan, around 30 million units of housing will be built over seven years. This aggressive target coupled with China’s already astonishing rate at putting up buildings will create a new boom in the construction industry. This will increase consumption of the three natural resources the country cannot afford to waste: water, energy and land, while putting immense strain on existing transport and utilities networks. Complicating this further, these projects will aim JUN HUANG PARTNER, WEI YANG & PARTNERS to receive the accolades of being eco-cities or green buildings. Unfortunately, these “green” developments are years A SIDE EFFECT OF C HINA ’S RAPID URBANISATION , air pollution away from benefitting our fragile environment, which is has made people increasingly concerned about their health why retrofitting buildings to become energy efficient is the and its impact on future generations, driven by fears over immediate, practical and effective way to combat climate its contribution to shorter life expectancies. change, reduce pollution and decrease energy consumption. While physical identity and economic transition used to be the major A wide-scale retrofit programme will generate immediate concern in the urbanisation process, environmental issues have started to benefits to the environment and community, create jobs, dominate debates in recent years. From Shanghai to provincial cities and provide resilience to future climate change and help keep down to small rural towns, few seem to be able to escape from air pollution. operating costs low. And if it will increase the bottom line, The primary causes of air pollution in China are coal-fired power building owners will be happy to follow suit. stations, excessive vehicle emissions, the overuse of fertilisers and, to the Most importantly, for the new Urbanization Plan to be surprise of many, the accumulated local pollution from everyone’s daily successful and sustainable, the community’s mindset cooking. It’s worth pointing out that direct air pollution from construction needs to shift to become more environmentally sites has become less of an issue compared with the 1990s, thanks to conscientious to build a more tangible sustainable culture, regulations and improved public awareness, which demonstrates that otherwise the plan will only lead to more congestion, air progress can be achieved as long as there’s a strong will. pollution, and harm to public health. China is now facing unprecedented opportunities and challenges: on the one hand it has to keep the momentum to continuously improve the lives Tackling air pollution: recycle existing buildings or of 1.3 billion people, but on the other, there is no alternative but to deal with rip it up and start again? Email your thoughts to environmental issues immediately and effectively to avoid immeasurable editor@ricsmodus.com, or tweet using #RICSmodus damage and cost to public health, environment, as well as the economy. We should develop cleaner and cheaper energy, upgrade power stations and building fabrics, and improve the public realm. But the key to long-term success is to educate the public on a greener and healthier lifestyle. 06

RICS A SI A .ORG

ILLUSTRATION DALE EDWIN MURRAY INTERVIEW MARK SMULIAN

BARRY PIPER FRICS CHIEF OPERATING OFFICER, ASIA, FAITHFUL+GOULD

Intelligence OUTBOUND REAL ESTATE INVESTMENT FROM ASIA

The total amount flowing out of the continent has grown exponentially since the global financial crisis Source: Real Capital Analytics

2013

2001

US$30,286m

US$999m

2005

2009

US$5,342m

US$5,540m

THE BIG IDEA

NEWS IN BRIEF ricasia.org/modusasia

Colliers backs Valuer LET 57% Registration in Asia-Pacific

SOLD

INFOGRAPHIC IAN DUTNALL

43%

The drive to raise valuation standards across the Asia-Pacific region has gained a huge 1961 endorsement from Colliers International, which has become the first regulated firm to register all its Asia-Pacific-based valuers for RICS Valuer Registration. RICS Valuer Registration provides assurance to markets – it ensures a consistent approach to valuations, raises the credibility of valuers, and provides clients with a clearly identifiable designation for the best-regulated and qualified USA professionals in the field. As an 19.2% RICS-regulated firm, Colliers will have a wider perspective of their valuation operations and risk profile across the region. “Compliance with international valuation standards is a cornerstone of any valuation business, given the greater demands from cross-border investors, auditors and lenders who all require the comfort of knowing that valuations are being prepared to the highest standards,” said David Faulkner FRICS, executive director, valuation and advisory services Asia, Colliers International. RICS Valuer Registration is an RICS member-driven initiative that was developed in response to the 2008 global financial crisis. The system was first rolled out in 2010 in the UK and was closely followed by the Netherlands, the UAE and other markets to bring clarity and confidence to the market in a global environment. As of 4 July, Hong Kong is the first market in Asia-Pacific to undergo full implementation of Valuer Registration. rics.org/vrs

LET 49%

Crowdfunding real SOLD 68% estate: the collective lending platform that SOLD 57% SOLDoffers an alternative to 51% traditional finance LET 43%

SOLD

70%

64%

LET

LET 36% LETLendInvest. The 32% What is it? company has lent 30% Crowdfunding is the collecting of £50m since its launch in May last 2011 1991 1981 2001 finance for a project from a large year, and expects exponential pool of backers or a “crowd”, usually growth over the next few years. through a website or online portal. What are the challenges? The method has helped to raise It can take a while for people to funds for everything from nonbuy into a relatively new way of profit campaigns, to new business thinking, and trust their money start-ups or product launches. is in safe hands. Why is it important? “Crowdfunding is an amazing Banks and other institutions force for the real estate industry,” have traditionally held power says Carlo Tabibi, CEO of Patch of over financial transactions in Land, a Los Angeles-based firm INDIA SPAIN real estate. But crowdfunding that helps accredited investors 6.3% GERMANY 7.2% CHINA REST OF WORLD 10.8% way of bridging 28.7% offers an alternative invest in residential, commercial 24.5% funding gaps in the market. and industrial assets. “But a big “We’re seeing a lot of interest challenge is building investors’ trust, from potential borrowers and since there is scepticism around investors in crowdfunding, investing online. Trust is built over particularly with UK mortgage time, and an investor must do his or her due diligence on the quality FRANCEand USA market lending this year still less GERMANY US$214.6bn US$38.2bn than half of what it was in 2006/ stability of the company.”US$22.4bn 2007,” says Christian Faes, co-founder ofUKpeer-to-peer Find out more: ukcfa.org.uk; US$67.8bn mortgage lending platform lendinvest.com; patchofland.com

COLOMBIAN BLEND 1971 Bogotá’s BD Bacatá building is being crowdfunded by more than 3,800 people

3.3%

THE DATA

AUSTRALIA

LARGEST MARKETS FOR INVESTMENTUS$21.9bn IN COMMERCIAL REAL ESTATE CHINA GERMANY US$25.1bn US$38.2bn

JAPAN USA US$41.7bn US$214.6bn

FRANCE US$22.4bn

CANADA US$18.1bn

UK US$67.8bn

AUSTRALIA US$21.9bn

JAPAN US$41.7bn

Source: JLL Global Capital Market Research

CHINA US$25.1bn CANADA US$18.1bn

Q3 2014_MODUS A SI A

‘Granted, BIM is a relatively new concept for the industry, but China’s leading contractors need to be proactive in its adoption’

orth more than US$1 trillion, China’s construction market offers a huge amount of potential for the development of building information modelling (BIM). Although BIM has been included as part of the 12th Five-Year Plan (2011-2015) and a BIM framework has been formulated, it seems China’s BIM culture, process, performance and people lag somewhat behind early adopters such as the US and UK. Granted, BIM is a relatively new concept for the industry, but China’s leading contractors need to be proactive in its adoption. This will require changes in the roles, responsibilities and values of existing stakeholders. A successful BIM framework heavily relies on the motivation from clients, and any effective BIM implementation has to be with a top-down approach. Furthermore, clients need to drive the BIM requirements, coordination and management of consultants and contractors for project delivery. Then, the BIM deliverable can be maintained by the owner and the life-cycle of BIM can be further extended to the facilities management aspect of the project. A recent RICS report, How Can Building Information Modelling Support the New Rules of Measurement, noted that the benefit for quantity surveyors is the acceleration of the estimating process that comes from an automatic digital building models extraction. However, for it to be effective, project team members must agree on a set of requirements defined by a quantity surveyor’s cost estimating and planning perspective. The study also revealed the principal reason for the limited use of BIM in quantity surveying practices is the 08

RICS A SI A .ORG

unavailability of BIM-based cost estimating or takeoff software tools that fully adopt the standards of measurement. In China, most projects still use the traditional designbid-build (D-B-B) method for project delivery, which separates the entities for design and construction contractually. BIM models are often built after the award of tender for checking the clash detection and project scheduling. The concept of 5D BIM applies the tool to the measurement or estimation process. Ideally, the automated generation of quantities takeoff reports is a more effective and efficient tool for quantity surveyors to enhance the quality of project delivery. With 5D BIM, we know that more than 85% of quantity takeoff for architectural design elements and structural components can be realised. There’s also a big debate about the software platform and the data exchange approach – whether quantity surveying data should be directly inputted to the BIM model, or the components should be exported to the external program for cost estimation. Using the Standard Method of Measurements doesn’t appear to be a practical approach or an effective solution for 5D BIM implementation. And, although the Standard Approach of Modelling is, official standards have not yet been unified and established. It’s unquestionable that BIM’s capability to detect clashes and optimise construction scheduling can benefit the delivery of projects. Unfortunately, in the Chinese market, there appears to be a growing trend for using a dedicated 5D BIM platform with a visually attractive interface only for individual commercial product demonstrations. Meanwhile, the fundamental issues about the practical use of 5D BIM remain unsolved. BIM adoption will require technical staff with new skill sets for both modelling concepts and software operations. More importantly, BIM’s use will need to alternate with the conventional workflow with which operators are already familiar, and people are sometimes very reluctant to adapt to a new paradigm without any direct incentive. Nevertheless, there is huge potential for 5D BIM in China, and its adoption will open up a new route for quantity surveyors to engage in the project design, construction and delivery process.

ILLUSTRATIONS ANDREA MANZATI, MARK BOARDMAN

DR BENNY CHOW DIRECTOR OF SUSTAINABILIT Y, AEDAS

40%

26%

URBANISATION IN INDIA

As the country’s population increases, more and more people are moving into cities Source: JLL’s Destination India – A Real Estate Journey for Corporate Occupiers

30%

28%

Intelligence

Urbanisation rate

856m

1.04bn

1991

1.15bn

2001

1.47bn

2008

2030

Population of India

WE LIKE

NEWS IN BRIEF ricasia.org/modusasia

Law Society in Hong Kong brings RICS into Storage the fold

FROM THE GROUND UP facilities/ As much of its 4 million /1 million population infrastructure In June, the Law Society of Hong was destroyed Kong issued a circular to its by the 2011 membership, which stated that earthquake, France Ireland RICS members canPoland now be Germany Spain Christchurch has the chance recommended for independent to pioneer valuation services, alongside the “smart city” Hong Kong Institute of Surveyors technology in rebuilding (HKIS). The circular supersedes

one that was issued in 1996, which announced that the Hong Gross lettable area (m/m ) Number of new centres Kong branch of RICS had been disbanded. The decision was made after RICS engaged in29.2 an 1,006 ongoing conversation with the Law Society regarding the RICS Rent Review, with the aim of Americas achieving equal recognition for RICS and HKIS. Last month, RICS approached the society about the joint HKIS/ RICS guidance note on surveyors acting as experts in commercial rent determinations and, following this meeting, the Law Society agreed that RICS would now be formally recognised in any lease contracts made. 2

$60K

Newey forges Indonesian quantity surveying links

INFOGRAPHIC IAN DUTNALL

Denmark

Netherlands Finland

European average

Sensing City What’s that? A digital information-gathering project run by Arup to help rebuild earthquake-damaged Christchurch, New Zealand, in a “smarter” way. 23.1 technology to enhance “Smarter”? A11.6 “smart city” is one that uses intelligent 350 303 the quality of life in urban environments. In a series of pilot projects, the Arup team is setting up sensors around the city to collect real-time information about Europe how it actually works – data Asiawhich will then be analysed to help minimise waste, increase efficiency and improve the day-to-day functions of Christchurch. This will include capturing data on pedestrian and vehicle traffic flows, along with water, air and noise pollution levels. Who’s involved? Importantly, the general public. As well as collecting data from sensors and information from transport and building management systems, the project will utilise volunteers’ mobile devices to capture data that will help inform decision-making on issues from health to construction. $123K “An intelligent city not only reduces carbon emissions but it attracts talent $115K $112K and investment through$107K high-quality services and the efficiency of its infrastructure,” explains Volker Buscher, who is a director and IT and communications systems leader at Arup. “Cities must create a thriving $76K $74K $72K $70K information marketplace to achieve these aims and with the Sensing City concept in Christchurch, we’re doing just that.” Find out more at arup.com.

$30K

HONG KONG

LONDON

PARIS

your employability, whether at a graduate or more senior level. At the University of Westminster, students and colleagues are encouraged to network and improve their external profile at every opportunity. We do this using industry speakers and running lunchtime and evening presentations.

Jane Wright FRICS head of the property and construction department at the University of Westminster and chair of Women in Property’s south-east UK branch. Good networks are crucial to improving Q2

NEW YORK

SINGAPORE

TOKYO

DUBAI

MOSCOW

“Networking is the key to success”

SYDNEY

SHANGHAI

ONE THING I KNOW RIO DE JANEIRO

MUMBAI

Outgoing RICS President Michael Newey has signed a memorandum of understanding with the Indonesia Quantity Surveying Institute’s president, Billy Li. The memorandum will allow RICS and the institute to promote and establish a platform for collaboration in the field of quantity surveying in the Indonesian market. The organisations will work closely on areas such as developing standards, provision of training, and to seek government recognition of quantity surveying as a profession.

$44K $28K

Spanish commercial property market

Sweden

Networking organisations such as Women in Property also provide plenty of opportunities to meet other like-minded professionals. What’s more, the events are not just limited to women, everyone can be involved. So get yourself out there! womeninproperty. org.uk 100% 90% 80% Q3 2014_MODUS A SI A 70% 60% 50%

Intelligence

SECRET SURVEYOR

NEWS IN BRIEF

“Is it realistic to expect surveyors that act for clients to be entirely impartial?”

ricasia.org/modusasia

RICS members charge up Chinese electricity project

urveyors that act as expert witnesses are legally bound not to the client paying their fee but to the court or independent third party to whom they are giving evidence. As most legal proceedings are adversarial, is it realistic to expect surveyors acting for clients to be entirely impartial? Most surveyors commence such proceedings by negotiating to achieve the most favourable settlement for their client. If agreement cannot be reached and the dispute is taken to a third party, the law and all the professional guidance demand objectivity, in other words a fundamental change in loyalty. In theory, objectivity should result in opposing surveyors reaching similar conclusions, but in my 35 years’ experience, when proceedings go ahead, surveyors’ valuations are likely to be as far apart as they were at the commencement of negotiations. Nor is this surprising. Courts and arbitrators are notorious for often more or less splitting the difference, so why wouldn’t valuation experts work on the principle that the further they

A recent tender document for China’s Fuzhou Ultra High Voltage project, issued by the State Grid Corporation of North Zhejiang, required bidders to have a minimum of 15 RICS-qualified quantity surveyor members – the first time such a requirement has been listed for public works in this sector. Over the past three years, RICS has developed a very strong relationship with the electricity industry in China. In March 2011, RICS signed a memorandum of understanding with the China Electricity Council (CEC), the president of which, Liu Zhenya, is also the president of the State Grid Corporation. China’s electricity industry has become a source of membership growth for RICS, as new members join through the Senior Professional and Associate routes.

IMAGE CREATIVE COMMONS

Launch of new RICS app brings CPD to your mobile RICS has released a free continuing professional development (CPD) app, which allows qualified members to record and save their CPD activities securely, wherever they are. All qualified members must record at least 20 hours of CPD activities each year. Activities logged on the app, called RICS CPD, are saved into the member’s own CPD record on RICS’ central database. Members are able to view their previously added, planned and completed CPD activities, and add new activities directly from a mobile device. The new app is currently available for iOS (iPhone, iPod touch, iPad mini and iPad). There are plans for an Android version to be released in the next few months. To download the app, search for RICS CPD at the iTunes app store.

can get from their opponent’s position, the greater the likelihood of a successful award? For the surveyor who studies the RICS guidance and says to himself: “I am answerable only to the court so instead of arguing for a rent of £250,000, I must express my honest opinion that the value is £220,000,” this approach may well result in a rent significantly less than he hoped for. Yet no one can doubt the words of the judge who, on hearing an expert surveyor admitting under cross-examination that he had deliberately omitted a key fact proving the very opposite of his case, shouted across the court: “Expert witnesses who do not tell the truth are absolutely worthless.” In the interests of justice, surveyors must adhere strictly to the law that governs these matters. By removing from arbitrators and judges the discretion to arrive at their own figures, the temptation of experts to present outlandish arguments may be reduced. If you are interested in being a secret surveyor, email editor@ ricsmodus.com

INVESTMENT

VOLUMES DECREASE ACROSS REGION CENTRAL PERK Purchase of Nakano Central Park East by Axa Real Estate helped boost Japan’s figures

Transaction volumes across Asia-Pacific’s commercial real estate markets were down 15% year-on-year to US$23.1bn in the first quarter of 2014,

reports JLL. However, transaction volumes in the larger markets of Japan and Australia grew by 15% and 31% respectively. Japan accounted for more than half (US$12.2bn) of the direct investment into the region’s commercial market. The first quarter of the year is traditionally a busy period for Japan’s investment markets – more so this year because of the increase in the

country’s consumption tax on 1 April, which meant many investors deliberately brought deals forward. Stuart Crow, head of Asia-Pacific capital markets at JLL, commented: “While investment has been slightly muted by concerns around growth in emerging markets and renewed economic uncertainty in China, we expect transaction volumes to pick up throughout the year.” Q3 2014_MODUS A SI A

Inaugural RICS Singapore Annual Dinner 2014 Celebrating RICS growth in Singapore and ASEAN Singapore Marriott Hotel, 320 Orchard Road, Singapore 238865

12 November 2014

6:30pm till late

Limited seats, so book now! To RSVP or ďŹ nd out more please contact RICS Singapore on +65 6692 9164 or email wlee@rics.org

For further information, visit ricsasia.org/sgdinner

Intelligence WHERE ARE THE WORLD’S WIND FARMS? China has the world’s largest global share of cumulative capacity Source: Global Wind Energy Council

3.3% SPAIN

USA

7.2%

19.2%

GERMANY

10.8%

INDIA

6.3%

CHINA

28.7%

REST OF WORLD

24.5%

INVESTMENT

IMAGE GETTY IMAGES INFOGRAPHIC IAN DUTNALL ILLUSTRATION BERND SCHIFFERDECKER

VIETNAM BENEFITS FROM GOOD NEIGHBOURS Investors from Hong Kong and China are increasingly spending money in Vietnam, figures from the country’s Foreign Investment Agency reveal. In the first five months of 2014, Hong Kong contributed US$630m in newly registered foreign direct investment, accounting for 11.5% of total investment into Vietnam and making it the second-largest investor into the country after South Korea. Furthermore, this was a fourfold increase over Hong Kong’s investment into Vietnam during the same period in 2013. China ranks as the seventh-largest foreign investor during the same period, investing a total of US$300m – a threefold increase year on year. Foreign companies are shifting their factories to Vietnam to take advantage of forthcoming tax reductions, tariff-free access to the US, and a low-cost workforce. Long An province’s decision to grant a certificate for Hong Kong’s Huafu Company to invest US$136m in a textile and dying plant, which is expected to break ground next year, is a clear example of the scale of foreign investment in the country. Meanwhile, Chinese and Hong Kong investors are also becoming more active in Vietnam’s real estate market. Vietnam was recently named by the US-based Association of Foreign Investors in Real Estate as the fourth-best emerging market in the world for property investments. A proposed law to allow foreign ownership of real estate is currently being considered by the Vietnamese government.

NATIONAL FABRIC Vietnam’s textile industry is a popular target for overseas direct investment

‘To remain relevant we must anticipate and respond to change’ LOUISE BROOKE-SMITH FRICS RICS PRESIDENT THREE THINKER Presidential agenda for year ahead features diversity, new territories and land-use planning

My journey to the position of President began with some sound advice from my father over 30 years ago: “If there is a professional body that can help you along the way – join it”. He was absolutely right. Throughout my career the professional status of RICS membership has been of real value to me, whether working for large employers in Africa and Asia, or as the founder and owner of a successful planning consultancy in the UK’s second city, Birmingham. In that time I have seen tremendous technological, social, political and economic change, which serves as a constant reminder that the role of any profession is not a given in the modern world. We have to remain relevant by anticipating and responding to change. With that in mind, I shall focus on three key themes over the coming year. The first is diversity. Although our industry boasts a huge spread of specialisms, it lags behind others in making the most of a diverse workforce. Our relevance depends on attracting the brightest, most enthusiastic talent regardless of background, gender, or any other incidental factor. RICS is already involved in many initiatives to promote social mobility and fair access into the profession and I will be lending them my full support. Crucially, all these activities will be in concert with other industry initiatives. Africa is my second theme. I am passionate about supporting the role RICS has worldwide, from established to emerging markets. The development of our sub-Saharan strategy is incredibly close to my heart. It’s a huge area of opportunity where real estate and infrastructure investment is growing phenomenally to meet population needs. Our approach is one of co-operation, building partnerships with existing institutions. Over the course of this year we will be expanding our activities in Ghana, Kenya and South Africa. My third focus is on planning and land economics, areas which are becoming increasingly important and that cut across many Professional Groups. I will be promoting the exchange of good practice, whether in land-use planning, which is central to determining where and how a growing population will live and work, or project planning as the prerequisite for the success of any scheme. This is a weighty agenda and I look forward to a busy year ensuring our profession remains as relevant as ever. Q3 2014_MODUS A SI A

competence

professionalism p essionalism

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Leading the way Leaders of the profession know that Continuing Professional Development (CPD) is essential to keeping skills and knowledge up to date and relevant. In joining the profession we have all committed to maintaining and enhancing our competence, knowledge and skills during the course of our careers. This commitment to continued learning and professionalism is a vital component in building our collective reputation with clients, regulators, governments and many other stakeholders. As an RICS member, you probably exceed the expected 20-hour minimum learning required each annual year. We recommend setting aside a small amount of time to record your professional development for the year, while continuing to promote the beneďŹ ts of the profession to your fellow RICS members, staff and colleagues. The RICS designation represents leaders in the ďŹ eld from all over the world, and participating in CPD is an integral part in enhancing and protecting the reputation of our profession for many decades to come.

rics.org/cpd

Intelligence PROPERTY

NEWS IN BRIEF

LONDON DEVELOPMENT RIDING HIGH ON ‘CROSSRAIL EFFECT’

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RICS Vice President and Asia-Pacific MD announced Chris Brooke MRICS, Chairman of RICS Asia since 2010, has been elected RICS Vice President. Brooke is the executive managing director, consulting, Asia-Pacific at CBRE, and has around 25 years’ industry experience. RICS has also appointed Will Myles as Managing Director of the AsiaPacific region. Myles was most recently managing director for Bahrain and Kuwait at WS Atkins.

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An RICS investigative report into the inefficiencies in China’s affordable and social housing sector (ASH) was launched during the RICS Future Cities Summit 2014, held in Shanghai, in June. As well as examining the issues that affect the sector, the report also seeks to understand the causes of inefficiencies and identify potential solutions. The study combines desktop research with intensive fieldwork in Guangzhou (south China), Wuhan (central China) and Beijing, and the results are of relevance to practitioners, policy makers and academics interested in addressing the difficulties faced by the sector. Download the report at rics.org/cash.

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FINGERS CROSSED GVA reports that planning applications in places such as Woolwich have risen in anticipation of Crossrail’s arrival in 2018

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Asia firms invited to join global IPMS community

Research from GVA has confirmed Crossrail’s beneficial effect on the supply of new residential and commercial property in London. The surveyor reports that 41% of planning applications within a kilometre of a Crossrail station cited the new railway as a key reason for development. This equates to around 53m ft2 (5m m2) of residential, commercial and retail space. Scheduled to open in 2018, Crossrail will connect Maidenhead and Heathrow in the west with Shenfield and Abbey Wood in the east via central London. Although GVA notes the project is not the only factor influencing development, there is evidence that it is playing

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International Property Measurement Standards (IPMS) Partners are now being sought worldwide. IPMS Partners commit in principle to the adoption of the standards within their organisations, and among the firms to have recently signed up in Asia are: LangdonSeah, Cushman & Wakefield and HKJC in Hong Kong; Renda Real Estate in Beijing; and Colliers International and JLL in Japan. Find out how to become a Partner at ipmsc.org.

PAGETURNER

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What is BIM and how will it affect your future? Building information modelling (BIM) is a managed approach to the creation, collation and exchange of shared intelligent and structured data and information across a project. As its use grows, there is an increasing need

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a significant part in unlocking regeneration and spurring development activity in the capital. “Crossrail is helping to deliver new property by giving developers and investors confidence to press forward with projects in close proximity to stations,” said Ian Lindsay MRICS, Crossrail land and property director. “Property is integral to the project and will be one of its most prominent legacies.” GVA’s research also found that central London and the East End are receiving the most planning applications within a kilometre of Crossrail stations. More than 5m ft2 (465,000m2) is being developed on sites at each of Tottenham Court Road, Farringdon, Liverpool Street, Canary Wharf, Custom House and Stratford. Significant schemes in outer areas such as Woolwich, Southall, Ilford, Slough and Maidenhead are also being brought forward because of the rail project. Lindsay believes surveyors should act now if they are thinking of getting involved in Crossrail: “This is a once-in-a-generation opportunity to take advantage of Europe’s largest infrastructure project,” he continued. “However, the window to get involved is closing, as we are now in the second half of the project’s life cycle.” Three surveyors tell their Crossrail stories, p34

BIM IN PRINCIPLE AND PRACTICE PETER BARNES AND NIGEL DAVIES

for construction professionals to understand the principles behind it and how work practices change to accommodate it. This book provides an excellent overview of this emerging field, and will help inform discussions with clients and colleagues.

It is suitable for all construction professionals and is relevant to all companies and projects, whatever their size and geographical market. What are you reading? Email editor@rics modus.com or tweet using #RICSmodus Q3 2014_MODUS A SI A

Debate

Around the table IAN ALDOUS MRICS, associate, EC Harris, and RICS-certified BIM Manager KATH FONTANA FRICS, managing director of BAM FM at BAM Construct UK and Board Member of the RICS Professional Group for FM ADRIAN MALONE, head of BIM and knowledge management at Faithful + Gould and RICS-certified BIM Manager BRENDAN PATCHELL FRICS, national BIM manager 5D and 6D at Bouygues UK and RICS-certified BIM Manager STEVE PITTARD FRICS, senior lecturer and academic lead for the BIM Centre at London South Bank University and RICS-certified BIM Manager RICHARD SAXON CBE FRICS RIBA FRSA, client adviser at Consultancy for the Built Environment and BIM ambassador for growth at the UK government BIM Task Group 16

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With increased collaboration, we will be able to be a better industry, delivering better solutions, with better outcomes IAN ALDOUS MRICS EC Harris

HOW BIG IS THE PRIZE?

BIM promises a lot: lower construction costs, quicker builds and better, more if the industry wants to realise this potential, it will have to become more open and collaborative. In this round table debate we discuss what it is that is holding us back – and what we can do about it

Richard Saxon: BIM is astonishingly potent – we haven’t even started understanding what it can do yet. But if we look at the car industry, where these techniques were introduced in the 1990s, the productivity jump has been colossal. The time it takes to produce a new model is down from seven years to two; the quality has shot up; the price has continuously gone down and the specification keeps going up. That’s the exact opposite of construction. And the workforce needed to produce 2m cars a year is just a tenth of what it was. Kath Fontana: For facilities management (FM), BIM has the potential to transform the commercial model. It will be a challenge to how we currently price and operate buildings. The lines are getting blurred between construction and FM – which is brilliant. And as we start to link BIM to [UK government strategy on construction and occupancy] we increase the drive towards a much more integrated design, build and operate model – private finance initiative without the equity. Adrian Malone: There is huge potential in terms of life cycle and FM. Once we are freed up from worrying about i n formation structu res a nd data formats, it opens the door to construction becoming a knowledge-based industry, with professionals applying their insights and creativity to the design and construction process. Ian Aldous: BIM will allow us to not only focus on capital expenditure or operating expenses, but on what’s achieved as a business outcome, and that’s hard to quantify at the moment. But with increased collaboration, we will be able to be a better industry, delivering better solutions, with better outcomes. »

BIM: ARE WE READY TO PLAY? Photographer David Vintiner

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By about the third project, you understand it and see the costs falling back and productivity rising. But there’s a big learning curve RICHARD SAXON FRICS BIM Task Group

WHAT CULTURAL OBSTACLES NEED TO BE OVERCOME?

KF: BIM results in a much more fluid data management process, with information going back and forth, instead of a linear process. In the linear example, this is where the risk gets transferred, so BIM presents a commercial challenge: whose risk is it? Brendan Patchell: We’ve had problems with architects who have produced a BIM model which they won’t hand over to us, giving us PDFs instead. Steve Pittard: You can’t argue against the principles of BIM. And when I explain it to 18

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students, they all ask: “Why would it be any different?” But this is all about people and culture change – it’s the people that have to make it happen.

CAN INNOVATION THRIVE IN A LOW-PROFIT ENVIRONMENT?

IA: One-off projects are open to abuse, but as we establish better programmes of work and start to engage in an open, collaborative way with partnering contracts, the innovation can come out. It’s difficult to innovate on one-off projects, but innovation in procurement will allow

contractors to be one-stop shops over the building’s life cycle, with professional teams brought in to be custodians of the design, quality and so on. KF: FM offers double, treble, sometimes qu ad r uple t he prof it m a rg i ns of construction, so there is a good business case for companies to take a whole-life approach to buildings, difficult though that is to grow from scratch. RS: Teams continuing to work together on future projects is a huge opportunity but there is still a lot of resistance. Clients don’t understand why you shouldn’t build a team

Debate

We’re starting to get enlightened clients that are asking for the model and for us to tell them what they can do with it KATH FONTANA FRICS BAM Construct UK

from scratch each time. They see that as the best way to get the best people and the best price. They have to be taught, and the UK government is doing that in the public sector. In the private sector, m a ny com merc i a l developers don’t see the benefit of continuity of the team. AM: If you can’t keep the team together, at least there should be standards in place that mean that you don’t have to set up information protocols on each project. KF: The fundamentals aren’t there yet. Half the standards aren’t yet published. BP: We have all been very protective of what we’ve developed in isolation and haven’t been grown up enough to share it.

FEW CLIENTS ARE INTERESTED IN BIM. SHOULD THEY BE?

KF: I think clients are quite right not to be interested in BIM. They don’t care what technology you are using, but they do want

to know if they can use the technology post-construction and if it can deliver a better outcome for them. We’re starting to get enlightened clients that are asking for the model and for us to tell them what they can do with it. IA: The professional teams that advise clients are accountable. A lot of the time BIM is seen by consultancies as an add-on and an extra cost, and [changing this mindset] is one of the challenges. RS: There is a cultural gate for people who are just getting into it, including clients. By about the third project, you start to understand it and see the costs falling back and productivity rising but there is a big learning curve. IA: The client that understands BIM is a real blessing, but they are few and far between and that’s why there’s a hugely important role for the project manager, acting within the client’s consultant team, to deliver BIM effectively. KF: Yes, a client may only build once, but they then have that building for 50 years and there’s a tremendous amount of refurbishment, reconfiguration and refit work over that time. We need to use 3D models in the same way as we do 2D drawings in that work. And we haven’t

talked about energy – the potential for BIM to manage and reduce carbon is massive. RS: There are very few long-term relationships in the commercial sector – they throw it over the wall and are protected by the UK Landlord and Tenant Act. My prediction is that 10 years from now the Act will be obsolete. I believe that landlords offering a whole-life-managed space, like American developers do, will be more competitive than those who chuck it over the wall for rent and leave the tenant to meet all the costs that arise. Another breakthrough is coming from the “internet of things”, with components in the building streaming information about what’s working and what’s not. This will be a gold mine for FM – when you combine the static data in the building model with the dynamic data from buildings in use you have a very different beast. AM: Here’s my prediction for the next 10 years. When a component fails, we won’t order a part and wait two to three days for it to arrive. We’ll have 3D printers, use the model to print the part and plug it in. The » Q3 2014_MODUS A SI A

Debate

There is a concern that lawyers are prophets of doom. But as we become more efficient, we will need fewer legal people and there will be fewer legal costs BRENDAN PATCHELL FRICS Bouygues UK

more we can use the model for intelligent maintenance, the more we can keep business-critical systems fully operational. KF: The UK government is missing a trick on maintenance. There is radio silence on whether [BIM will be required for operations] by 2016. Just as the mandate has driven people in design and construction to take up BIM, if that mandate was extended to the operational phase, and therefore FM, we would do it in a heartbeat.

DO FEARS ABOUT THE LOSS OF INTELLECTUAL PROPERTY STOP DESIGNERS SHARING MODELS?

BP: It’s so easy to rebrand data in Revit these days. In theory, this should be a major, major threat, but in reality, you’re not really stealing anything at all. SP: Architects have always worried about 20

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this and sought to issue PDF files instead of CAD files, but the reality is that you could recreate that anyway. RS: But not so easily. Architects and specialists have design preferences and what BIM allows them to do is to hold libraries with readily downloadable elements to populate the model. BP: This raises a fundamental issue. We need to break down the barriers of in-house one-offs a nd that w i l l force the commoditisation of objects. RS: If you hire Foster [+ Partners], you want a style that comes with that and that is intellectual property. BP: For the industry to become truly efficient, we have to use standard components that are freely available for use. IA: This is going to come. Buildings will be bespoke, but using parts that are standard. Rightly or wrongly, firms have invested heavily in creating bespoke libraries and they don’t want a practice that started up yesterday using that library. In five years, this will cease to be a problem because of the churn in the industry. KF: What is intellectual property today will be commoditised tomorrow. No innovation remains an innovation if it’s useful. Businesses need to spend their time thinking about what they can do next – I don’t think construction understands the innovation cycle. AM: The idea is not to create a whole army of prefabricated buildings, but to build architecturally-rich buildings in an efficient way.

WILL BIM AFFECT THE LEGAL PROFESSION’S INVOLVEMENT WITH CONSTRUCTION?

BP: There is a concern that lawyers are prophets of doom. We are changing, and we are going to make mistakes, and it only takes one nasty court case to penalise keen experimenters. As we become more efficient, we will need fewer legal people and there will be fewer legal costs. AM: There’s not a single, model-compliant, pure BIM contract out there. RS: The UK Ministry of Justice (MoJ) used the PPC2000 partnering contract on [a BIM trial at Cookham Wood] and will use it again. The team stands and falls together and accepts that no one party is to blame.

In the future we’ll be able to keep business-critical systems fully operational by using the model for intelligent maintenance

GLOBAL GROWTH

BIM: an international perspective

ADRIAN MALONE Faithful + Gould

It doesn’t matter which contract you use, as long as it is collaborative in style. KF: A client said to me recently: “BIM should be driven by the pipeline carrot, not the contractual stick,” which I think is encourag ing and a refreshing and appropriate approach.

THE UK GOVERNMENT AIMS TO USE BIM IN ALL ITS PROJECTS BY 2016. IS THIS ACHIEVABLE?

RS: Several departments are well on their way; others are not so. I’d say schools are at the back of the pack. Overall, I’d say it’s [getting there]. KF: I actually see that there is real change taking place. The fact that there is even a

facilities manager sitting at this table represents a massive change. I’ve talked to more people in design and construction in the last two years than I have in the previous 20 years.

WHAT ADVICE WOULD YOU GIVE TO THOSE STARTING TO USE BIM?

KF: Give it a go and see how it works for you. IA: People need to wade in. There’s plenty of good documentation out there and I find it amazing how little upskilling people are prepared to do themselves to get up to speed on something that is massively changing our industry. AM: Get started, be honest with the people you work with and help each other.

According to Global Construction 2025, a report recently published by Oxford Economics and Global Construction Perspectives, the output of the global construction sector was around US$7.2tn in 2013 and will grow to US$15tn by 2025. The biggest growth is expected in economies such as China, India, Brazil, Russia and Poland, taking emerging countries’ contribution from about 35% of global output to 55% by 2020. The construction industry in the developed world is rushing to embrace BIM as a “catalytic agent” for gaining operational efficiencies and as a business driver. Developing countries like China, India and Brazil are showing interest, but progress is far below expected levels, with limited industry-wide support. This may seem contradictory. The volume of construction is poised to increase and gains that can be achieved with BIM in developing countries could be enormous. Why the contradiction? Industry organisations, such as RICS, the buildingSMART alliance and CoreNet Global, which have an increasingly global footprint, need to play an important role in bridging this gap. Lessons learnt in the developed world must be transferred to other parts of the world. These organisations can help in fostering a deeper understanding of BIM. The message is loud and clear: BIM is here to stay. It’s not a case of “if” but “when”. Dr Anil Sawhney FRICS is Associate Dean and Director of the School of Construction at RICS School of Built Environment, Amity University, New Delhi, India Q3 2014_MODUS A SI A

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Interview

HOUSING 让香港人 HONG KONG 安家落户

Marco Wu FRICS has devoted 邬满海FRICS鞠躬尽瘁 his career to helping residents 服务全球人口最稠密都 of one of the most densely populated areas on the planet 市的居民 Interview Roy Ying, RICS Asia Head of Communications

IMAGES PETER STWEART, CREATIVE COMMONS

Housing is a serious issue for the government of Hong Kong. Almost 50% of households live in public housing estates – in public rental housing, in subsidised housing under the Home Ownership Scheme, and in interim housing. But there are still around 250,000 on the waiting list. As chairman of the Hong Kong Housing Society, Marco Wu FRICS, the 2014 RICS (Hong Kong) Property Person of the Year, is at the forefront of efforts to put a roof over the city’s residents’ heads. You are often referred to as the founding father of Hong Kong’s Home Ownership Scheme (HOS). How would you evaluate its effectiveness? First of all, I really cannot claim to be the father of HOS. Lord Murray MacLehose initiated the scheme while he was governor of Hong Kong in the 1970s. I joined the Housing Department in 1977 and, since then, have enjoyed a long association with the implementation of HOS. I still remember the days when I was asked to propose names for the first batch of HOS estates, back in 1978. In many countries, promotion of home ownership has been regarded as a desirable social objective, as it would enhance

social stability and strengthen the community’s sense of belonging. Today, Hong Kong has a housing ladder that enables lower-income families to take the first step to enter public rental housing (PRH). The objective of HOS is for more financially capable public housing tenants and middle-income families in private-rented accommodation to move up the housing ladder to become homeowners. Since the inception of HOS, around 380,000 flats have been sold under subsidised sale schemes. More than 200,000 of these were bought by families who had surrendered their PRH units for reallocation to more needy families. »

采访人：殷晖，皇家特许测量师学会(RICS)亚洲区传讯总监

房屋问题是香港政府的重要议题。香港现时有近半数家庭居住在公共房屋，当中部份居于公共屋邨（公屋）、部份住在资助出售房屋，即透过「居者有其屋计划」购置的单位（居屋）、有些则住在临时居所，但是全港仍有大约250,0 0 0个家庭于轮候册上等候上楼。香港房屋协会主席邬满海先生FRICS，「2014年RICS香港房地产界年度风云人物奖」得主，一直竭尽所能为城中居民盖上头上一片瓦。你素有「居屋之父」的美誉。你会怎样评价「居者有其屋」计划的成效？首先，我对「居屋之父」的称誉实在当之有愧。事实上，「居者有其屋计划」是由前香港总督麦理浩爵士于 1970年代推出的，目的是帮助市民置业安居。1977年我加入房屋署，自此便一直从事与居屋计划有关的工作。1978年我曾为第一批落成的居

屋命名，对此我仍记忆犹新。现时很多国家都鼓励其市民自置居所，认为这样不但可以令社会更穏定和谐，而且可以加强市民的归属感。现时香港有一道房屋阶梯，让低收入家庭能借着入住公屋进入置业的第一步。居屋计划的目的是加快住屋的流动性，让有经济能力的公屋租户及租住私人房屋的中等收入家庭能进入房屋阶梯的下一步，购置私人物业。自推出居屋计划以来，约有380,000个资助出售房屋单位已售出，当中有超过2 0 0,0 0 0个单位是售给居住公屋的家庭，而他们腾出的公屋便可编配予有需要的人士居住。一般人都喜欢把新加坡与香港作比较。对你而言，两地的房屋政策有各有甚么优劣？两地的房屋政策实在难以相比。首先，新加坡的在职人士须要参与中央公积金计划，这是一个强制性的全面社会保障计划，用意是为在职人士提供养老、医疗和房屋等项目的保障。雇员的薪酬中占16%会抽取作为公积金的供款，而雇主的供款亦达雇员薪酬的20%。这计划降低了新加坡国民对私人楼的需求，因85%的人口都居于建屋发展局所兴建的房屋。我不太肯定这模式是否适合在香港推行。在香港，政府主要是透过免地价方式批地给香港房屋委员会兴建公屋及居屋，为低收入及中产家庭提供适切居所。同时亦透过土地规划及卖地计划，令私人市场可以穏定及健康地发展。现时香港约有一半人口居住于公营房屋，而另一半则居住于私营房屋。其他国家会制定出不同的房屋

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Interview

It is often commented that Hong Kong and Singapore share similar characteristics. What are the pros and cons of each city’s social housing models? It’s really hard to compare. In Singapore, a citizen in employment must contribute to the Central Provident Fund, a compulsory comprehensive savings plan for working Singaporeans primarily to fund their retirement, healthcare and housing needs. Employees contribute up to 16% and employers up to 20% of a salary into the fund. This system has driven down the demand for private residential homes – 85% of Singaporeans live in homes developed by the Housing and Development Board. I’m not sure if this model is workable in Hong Kong. The government subsidises low and middle income families here through granting lands at nil premium to the Housing Authority, which then builds public and HOS houses. It also regulates private markets through land use planning and land sales programmes. Half of Hong Kong’s population now live in public housing. O t h e r co u n t r i es h ave developed different models. In some parts of Europe, housing subsidy is essentially provided through the grant of rent a l l owa n c e o r m o r tg a g e allowance for eligible families to rent or purchase private housing. The governments concerned have built only a small quantity of subsidised housing. Other countries have been encouraging private-sector participation in the development of affordable housing. Can Hong Kong follow suit?

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In the past, private developers in Hong Kong were invited to join the Private Sector Participation Scheme (PSPS), whereby the government guaranteed a price to buy the flats from the developers on a set of prescribed terms. With a view to resolving the building quality problem, just before the SARS outbreak more than 10 years ago, an improved version of PSPS – the Mixed Development Scheme – was launched, which required developers to build 60% of the flats in accordance with tender specifications. The government had the option of randomly selecting half of these flats for sale to eligible households. Two sites had been sold and developed under this s c h e m e. U n f o r tu n a te ly, following the government’s decision to suspend all subsidised sale schemes in 2002, the developers modified the leases and sold these two projects as non-subsidised residential developments. PSPS would help increase the production of subsidised housing. Subject to proper control on building quality, t h e gove r n m e n t s h o u l d encourage greater private sector participation in the provision of subsidised housing. The cost of construction has been rising rapidly in Hong Kong. What are the root causes of the problem? This is a real concern. Land values have always been the main driver of house prices. Now, though, construction costs have also been escalating – for a variety of reasons. At present, there are several so-called mega infrastructure projects at various stages of development. This,

政策，以欧洲国家为例，政府会为合资格的家庭透过租金资助或按揭津贴形式提供房屋资助，帮助市民租住或购买私人物业，因此政府只须要兴建少量资助公共房屋。其他国家一直踊跃鼓励私人发展商参与兴建资助房屋，你认为香港能采纳这个模式吗？过往在香港，私人发展商也曾获邀请参与兴建资助房屋，即「私人机构参建居屋计划」，计划订明政府承诺以预设的条件和售价购买与发展商合作兴建的住宅物业。为解决楼宇质素问题，香港政府于十多年前邀请发展商参与「混合式发展计划」，该计划对房屋兴建预设建筑规定，包括60%的房屋需符合指定规格，政府会在其中随机抽取一半单位，作资助房屋出售，其余单位由发展商以私楼形式在市场出售。当年实施

这计划后，曾出售两幅土地，但于 20 02年，政府公布停止所有资助出售房屋计划，上述两个项目中的单位便转为私人单位在市场上发售。此计划确实能提升兴建资助房屋的数量。只要能适当控制建屋质素，政府应该鼓励私人发展商更进一步参与发展资助房屋，以运用更多资源来解决房屋的急切需要。香港的建筑成本近年来不断上升，你认为是什么原因导致上述的问题？这是一个须要关注的问题。一直以来在香港,土地价值是决定楼价是否可负担的主要因素，但现时，建筑成本亦慢慢成为影响楼价可负担度的

coupled with the “catching-up” of the public housing development programme, has generated a great demand for professional and site workers in the construction industry. This points to the need for better planning and co-ordination of public works programmes. Another important point is that Hong Kong’s construction industry workforce is ageing: close to 50% of registered workers are more than 50 years old. I think the community needs to come up with practical ways to attract young people to join the construction industry. I understand RICS is organising a number of roundtable seminars with the various stakeholders, including the D eve l o p m e n t B u rea u , contractors, consultants and developers to brainstorm ways to alleviate the rising pressure of construction costs. I’m confident that there is a solution to every problem, but the people of Hong Kong may have to make some difficult choices. In the meantime, we should not shy away from importing construction labour. By 2041, it is forecast that more than 2.5 million people in Hong Kong – around 30% of the

population – will be over 65. How can private developers be encouraged to build retirement homes to cater for the rising number of elderly people? In Hong Kong, apart from the Housing Society, there are not many providers of retirement homes that integrate housing, care support and lifestyle under one roof. There is a high institutionalisation rate, and many elderly people in Hong Kong have been prematurely living in residential care homes, contrary to the government’s policy of “ageing in place”. At present, many private developers are developing and selling housing. However, the development of retirement homes with comprehensive care support and lifestyle services for the elderly is not something on which they are focusing. The Housing Society has developed several projects for the elderly, such as Cheerful Court, Jolly Place and Tanner Hill, but our resources are limited. The government should consider ways to encourage private-sector participation in this market. There are many examples overseas of real estate funds making long-term investments in developing and operating retirement villages. I would expect that, as demand grows, local developers would be interested in branching into this business.

因素。我认为令建筑成本上升有很多原因。现时，我们经常听见政府推出多个大型基建工程，再加上须要兴建公营房屋配合社会需要，无疑都需要大量建筑人手。这些都需要透过完善的规划及协调公共建筑项目来解决。此外，建筑工人年龄老化问题亦不容轻视，现时接近一半注册建筑工人已年逾50岁。我认为社会应该想办法吸引更多年青人入行，避免出现青黄不接的问题。我知道皇家特许测量师学会一直就此问题与不同持份者作出讨论，包括发展局、承办商、发展商和相关顾问，多次举办圆桌会议商量解决建筑成本飙升问题的方法。我相信每个问题都会有解决方法，问题是香港人需要作出艰难的选择，以目前为例，便不能继续迴避探讨引入外劳的可能性。根据政府数据推算，香港老年人口在 2 0 41年约有 2 41万，占全港人口约 30%。有甚么方法可以吸引私人发展商去发展退休房屋计划，为未来作出准备？在香港，除了香港房屋协会外，没有太多发展商提供包罗居住、护理保健和社康的「一站式」退休房屋。另外，香港现时的入住院舍比率十分高，情况与政府的「居家安老」政策背道而驰。虽然地产商一直致力兴建和推售住宅物业，但却没有着重发展配套设施完备的长者屋。房协现在已经发展了数个退休房屋项目，包括彩颐居、乐颐居和丹拿山，但是单单依靠房协发展退休居所，资源肯定不足够。政府应该推行措施，鼓励私人发展商投资这个新兴的市场。海外国家会利用房地产发展基金，为退休居所作长远的投资。相信随着香港对退休房屋的需求会日渐增加，将会吸引本地发展商加入这个行列。

RESIDENT EXPERT Marco Wu (opposite, centre) visits elderly tenants at Yue Kwong Chuen, and, below from left: Lai Tak Tsuen, Tsz Oi Court, Hibiscus Park, Kwun Lung Lau and Hong Pak Court

房屋专家邬满海 ( 左页上圖, 中 ) 探访渔光村的长者租户; 及 (下图, 左起) 励德邨丶慈爱苑丶芊红居丶观龙楼及康柏苑。

SOCIAL ENTERPRISE

Building happiness The RICS Global Affordable Housing Report, published in March this year, concluded that home ownership is a key part of social stability. The report found a consistent policy objective across the BRICs countries of Brazil, India and China, although the approaches may be different. Another point of consistency lies in the attempts by different authorities to encourage private-sector involvement in providing social housing. Hong Kong has set an ambitious target of 470,000 homes to be completed during the next 10 years. It is a challenge for the government but a real opportunity for chartered surveyors, as the demand for built environment professionals is stronger now than ever.

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DOLLARS IN THE DETAIL The extreme accuracy of technology used by geomatics surveyors has created a profitable niche in the movie industry

eomatics surveyors already occupy one of the most technologically advanced corners of the profession. And there is now a growing movement within the industry that is fusing this cutting-edge discipline with the bright lights of Hollywood. Geomatics companies are increasingly finding roles scanning everything from objects and landscapes for video games, to actress Sandra Bullock for Academy Award-winning film Gravity. “From the mid-2000s companies really started marketing themselves towards the entertainment industry,” says Liz Jones, senior teaching fellow in geomatics at University College London. “Its use of geomatics is growing.” As the adoption of CGI became more commonplace and the technology more advanced, so too the greater need for what geomatics could provide filmmakers: accuracy. “Films have used 3D environments for a long time, but the way they captured data in 3D models wasn’t as accurate,” says Huseyin Caner, head of film and entertainment at RICS-regulated Plowman Craven, whose recent film credits include Edge of Tomorrow, Jack Ryan: Shadow Recruit and Inception. Geomatics companies also offer something that postproduction companies, FX units and motion-capture labs do not have – a wider range of the latest scanning technology and the expertise to go with it.“Our skills are in measurement and portrayal of that information,”explains Plowman Craven technical director David Norris. “We’re at the forefront of measurement and photographic technology – it makes sense for them to tap into that.” Geomatics surveyors work across three areas in entertainment. They use LiDAR to scan large areas of land or big objects, cyber scanners to capture actors’ faces and bodies, and prop scanners to create high-resolution models of small objects. Using LiDAR on sets allows effects workers to “track the camera and apply particle dynamic effects”, says Caner.“Fake fire and digital water require an accurate volume.” The same technology can be applied to entire race circuits for video games (box, overleaf) or half an aeroplane. Yes, half. “One of our first jobs was scanning a huge Russian Antonov for a Bond film,” recalls Norris. “We only got access time to scan half of it. It was on screen for only a few seconds, so they decided no one would notice if it was mirrored.” This somewhat rushed approach may run contrary to most surveyors’ training, but is just one example of the degree of flexibility demanded by the entertainment industry. “On location they might say ‘can you get that bit of rock’, then ‘can you get all of that valley?’” says Louise Brand, managing »

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IMAGES WARNER BROS ENT. INC.

reliable digital scanning – and geomatics surveyors are perfectly placed to capitalise. Simon Munk reports

Geomatics

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Geomatics

I get calls at midnight, requesting a team on site the following morning. You need to be prepared and you need people with the right attitude

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CASE STUDY

Winning formula on Brands Hatch Eutechnyx, creators of freeto-play online racing game Auto Club Revolution, wanted to do something special when they recreated iconic British race track Brands Hatch inside the game. So they ditched traditional video game methods of building tracks that combine digital mapping data, aerial imagery, non-georeferenced photography and even some tape measurements, and instead contracted LandScope Engineering, a survey and data management firm that has worked on other entertainment industry and video game titles, among them motorbike racing game MotoGP. “The track was mapped with a mobile system mounted on top of a van combining LiDAR and panoramic photography,” explains Tom Card, 3D survey services manager at LandScope. “The van drove around the track four times. We also drove down pit lanes and along service roads. Given limited track availability, it is vital to have a rapid data acquisition and measurement technique – it took less than an hour.” The result was a highresolution point cloud that captured not just the track but everything visible to the cameras, including trees, barriers and fences. “The beauty is in the detail – every bump, every gradient, every twist and every turn at Brands Hatch,” says Mark Barton, creative manager at client Eutechnyx. The result? “A much more immersive experience for the player.”

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director of 4DMax. “You can’t afford to have a system with you that can’t deal with anything and everything.” Even on the film lot, scanning can be a fraught process. Often there will be only a one-day window to capture a set before it is broken down and packed up. That time pressure is nothing, though, compared to the job of digitally capturing the bodies and faces of the talent. “You only get five minutes to get what you need,”explains Caner. “You have to have back-up for everything – they don’t tolerate failure. That’s why it’s a difficult sector to get into. You have to build trust.” Brand agrees: “Cyber scanning and prop scanning is where your name is made because you need to be able to put people at ease, get everything you need and understand how they want to be treated. One actor might want to pass the time of day, another might want to just get it done.” This requires people skills to go alongside the technical capabilities of getting all the data fast enough. To make a tough job tougher, data demands are increasing rapidly – the latest cyber scanners can now capture the pores on an actor’s face and every strand of their hair. Being able to work across LiDAR, cyber and prop scanning disciplines demands new skills for most geomatics surveyors – and not just in handling actors. “We use four pieces of software post-capture to deliver the data,”says Brand.“No software used in surveying is what HUSEYIN CANER Plowman Craven you use to deliver to the film industry.” Plowman Craven, as an established operator in this market, goes even further:“We’re increasingly using artists and digital sculptors to prepare the data so it fits with clients’ workflows seamlessly,” says Norris. “I don’t see that as different from other parts of our business.” The gear is not cheap, either: “The investment to do LiDAR, cyber and prop scanning is £300,000–£400,000,” says Brand. “You can hire LiDAR scanners. But the others are difficult to hire and therefore it is very difficult to have a working knowledge of both data capture and processing – it’s very specialist.” Specialist and demanding, but what other job in the discipline of geomatics allows you to hang out with the Hollywood A-list? 4DMax did the scanning for Gravity, which involved getting up close and personal with its star, Sandra Bullock. Brand, however, is quick to manage expectations:“It’s a tough industry. The hours are ridiculous and you need to be thinking on your feet the whole time.” “The culture is very different from the rest of the surveying world,” adds Caner.“I get calls at midnight, requesting a team on site the following morning because the shooting schedule has changed. In this industry, if you can’t react you won’t survive. You need to be prepared and you need people with ASTRO CAUGHT the right attitude.” Gravity’s Orbital space capsule was scanned at Something to bear in mind next Shepperton Studios in time you go to the movies. Stick the UK by 4DMax and around to watch the credits and it the images (left) used could be your name you see scrolling to create a replica for across the screen. scenes requiring CGI

14 â&#x20AC;&#x201C; 16 October 2014 | Singapore EXPO Halls 3 & 4 | www.fmse.com.sg

Join us at the regionâ&#x20AC;&#x2122;s most comprehensive trade event servicing the facilities management industry, providing an arena to network and stay updated on the latest industry needs.

What You Can Expect: Industry networking with suppliers, end users and professionals Gain advice on all aspects of the aftercare and maintenance of facilities and background in design and construction for better integration Network at 2 trade shows on one platform to address the challenging needs of urbanisation

Co-located with The Facilities Management Conference which aims to address the transformation of facility management through effective and productive use of resources and smart innovation through the exchange of ideas from line-up of noteworthy local and international speakers. Visit www.fmse.com.sg/conference to learn more and to sign up as a delegate.

To exhibit, contact Ms. Ling Oh | T: +65 6319 4037 | E: lingoh@sph.com.sg Mr. Henri Tan | T: +65 6319 8538 | E: henritan@sph.com.sg To visit the Exhibition, pre-register at www.fmse.com.sg Organised by:

Supported by: FULL COLOUR

PANTONE: 375 C Cool Gray 9 C

CMYK: 44C / 1M / 97Y / 0K 0C / 1M / 0Y / 51K

Facilities management

REWRITE THE SCRIPT Organisations that have a complex set of day-to-day needs, such as Londonâ&#x20AC;&#x2122;s Royal Opera House, are prime candidates for a more integrated approach to FM

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CENTRE STAGE Once dismissed as a supporting cast member, are boardrooms waking up to the fundamental role facilities management can play in a business’s strategy? Words Brendon Hooper

or an organisation to perform well, so must its building. It is a succinct way to describe the crucial role facilities management (FM) plays in the effective day-to-day operation of property assets. From maintenance, cleaning, catering, or managing building energy use, facilities managers are more important than ever to delivering services that support the workplace. Successful FM can help improve the long-term efficiency and productivity of a company, its staff and its clients. Yet raising awareness of its strategic value remains a challenge, particularly higher up the corporate chain. In recent years, RICS has been at the forefront of supporting the professional qualities of FM. It is the only body to offer a chartered qualification in FM, and around 12,000 members are on the RICS Facilities Management pathway. Two years ago, a ground-breaking RICS report, Raising the Bar, examined the global perception of FM and its strategic potential for business. It found that for many organisations, FM was still seen as “a commodity rather than a professional skill … to be procured at lowest cost”. Despite this, the report significantly

helped to shift the focus away from purely costs, and towards how FM is most effective when incorporated into the highest level of business planning and strategy. “The average head of facilities spends over 50% of his or her time on day-to-day issues and less than 21% of their time on strategy and planning. This needs to change for FM to fully realise its potential,” says Paul Carder, managing director of the Occupiers’Journal and one of the report’s authors. Further recommendations include the need for FM professionals to work with business leaders to continue to develop qualified facilities managers, to further define professional standards, and to encourage organisations to“think and act”strategically. But although most businesses have a good understanding of what FM is, to get them thinking about the strategic value of FM, we need to go beyond the basic transactional delivery of services, suggests Johnny Dunford MRICS, Global Commercial Director at RICS: “Traditionally, it’s been very one-dimensional. A service is bought and there’s a fight over how much is paid for it. But by implementing a package of services – total FM or integrated FM – it can make a real difference to a company’s bottom line.” » Q3 2014_MODUS A SI A

WHY FM MATTERS

The view from Asia TAKE A PREMIUM APPROACH Facilities management will grow in the Chinese market and firms in Hong Kong will play an important role. FM must adopt a strategic approach to flourish, particularly in the high-tech, pharmaceutical, and food manufacturing sectors, and it will gain momentum as consumers become more concerned with quality. However, companies in Hong Kong will face competition from established European and US-based FM providers. It is expected that there will be a growth in the number of RICS-chartered FM surveyors and that professional standards will rise quickly in the next 10 years, with an emphasis on the use of IT and data management.. KK Wong FRICS, managing director, Zeppelin Property Development Consultants, Hong Kong TRAINING IS PARAMOUNT The gap between technology and personal skill sets seems to have become a gulf – one that might still be widening. “Bottom-ofpyramid” employees who fuel the FM industry, are under constant pressure from their employer to upgrade their skills to match technological developments. Given this situation, the need for technology and platforms to help facilities managers cope with current demands is paramount, and will bring opportunities to the training industry and property organisations. Mahesh Manikashetti, director of operations – AsiaPacific, facilities and property management, Cushman & Wakefield Singapore 32

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CAST OF THOUSANDS Before the Royal Opera House brought in Mitie on a five-year integrated facilities management contract, a host of services (clockwise, from below left) from security to maintenance and engineering were being provided by separate subcontractors

urthermore, because of the wide variations in the role that a facilities manager plays in organisations around the world, we can think about enhancing value holistically. Scott McMillan FRICS is division chief in facilities, real estate and capital projects at the International Monetary Fund (IMF). He says: “The facilities manager and surrounding colleagues play a fundamental role in making the workplace productive, functional, effective and comfortable. It’s a huge, multi-faceted role that covers many areas, such as sustainability and making a building environmentally effective [box, left] – but also in human resources and managing ‘office wellbeing’, which can extend to the catering department, or fitness centre.” The potential for FM to demonstrate strategic value is noticeable, but the Raising the Bar report found that more than half of facilities organisations do not have meaningful direct exposure to the “C-suite”– a corporation’s senior level, or chief, executives – other than the chief financial officer. This is seen as a substantial barrier to progress, because only by being more closely positioned to the board can facilities managers gain a greater understanding of a business’s aims and objectives to deliver an efficient property management strategy. “We’ve got to help FMs convey their message to the C-suite more effectively, and the value that they bring in terms of improved productivity, or enhanced working practices in relation to space, and the associated cost benefit of ‘overall office wellness’,” continues McMillan. Established in 1987, Mitie (Management Incentive Through Investment Equity) is one of the UK’s biggest facilities management companies, employing around 77,000 people in services such as energy management, security,

GOOD CALL Vodafone (top and above) is another company reaping the financial benefits of contracting a single facilities manager on an integrated services model

Facilities management

PEOPLE POWER O-Gen waste-to-energy plant in south-west England (below) is a tie-up between Mitie and local company the Una Group, while pan-European contract with Rolls-Royce (below, right) is Mitie’s largest

cleaning, mailroom and couriers, helpdesk, waste and pest control. Managing director Martyn Freeman says: “FMs are fundamental to the operation of a client’s assets, but sometimes don’t have a voice at the top table for such an important sector. Let’s be honest, FM is probably undervalued and seen as a big cost to clients, and the way single services are procured perhaps leads clients down a very commoditised route,” he explains. “It’s only when you start interacting on a strategic level with the client base on key issues that affect the board’s agenda that FMs show their real value.”

ne key area where a strategic approach to FM has the potential to be most effective is across public sector property assets. “FM can certainly deliver a lot of efficiencies and savings for government,”says Deborah Rowland FRICS, head of facilities management policy and strategy at the UK’s Government Property Unit. Three years ago, her team began implementing a strategy to centralise FM contracts across central government departments, which is expected to achieve savings of around £93m a year. Her first step was to form an FM board comprised of department heads, which would tackle these challenges and create a new FM contract model. “The first phase is about pulling it together to get transparency. Four years from now we’ll know what our spend is, and what our service levels are,” explains Rowland. “The new FM contract model will procure all FM services centrally, but there will be slight adaptations to the model for each department.” To get some idea of the scale of the task, across 2012/13, around £1.9bn was spent on FM services for the entire central government estate, which included everything from

purchase orders to private-finance initiatives (PFI). The strategy has a four-year framework, and so will continue across parliaments. In addition, the model will be extended to the wider public sector, such as hospitals and schools. And the more widely the model is used the better, believes Rowland, as they will be able to gather central data on performance of spend.“This will help us benchmark, which we’ve never been able to do before,” she says. At a time when energy prices are rising and workplace practices are changing, global organisations are realising more and more that FM must be understood as a business function to maximise performance. “It’s tough for the FM world to get their message across – it’s about having a profile and being listened to more,”says Dunford.“RICS aims to help with its global reach and relationship to government. Everyone’s talking about the same thing: how does strategic FM make a difference to business, what do we need to do to enhance it, how do we look after the people in FM in a more professional way?” For Mitie, this could also mean developing and supporting different pathways and accrediting employees at the sharp end. “Tens of thousands of people work for us in catering, cleaning, landscaping, pest control or waste management,” says Freeman, “and every time they go from company to company, so much time and money is wasted because they have to be re-vetted by the new company each time they start a new contract. So they need a recognised qualification that can be passed from organisation to organisation.” Freeman believes bodies such as RICS are key to raising the profile of everyone involved in FM, at multiple levels. This sentiment is echoed by McMillan. “I’d like my team to have professional accreditation,” he says. “It means they will have greater exposure to training and development opportunities, which can benefit their career. I see the RICS designation as being highly beneficial to me and my team in the longer term.”

REFERENCE POINT REPORTS AND RESOURCES International Facility Management Association ifma.org RICS Facilities Management website Visit to read the Raising the Bar: City Roundtables report and RICS Strategic

Facilities Management Case Studies April 2014 (Workplace Law) rics.org/ facilitiesmanagement The Future of Facilities Management report from Mitie bit.ly/futureofFM

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Crossrail

CROSSRAIL AT A GLANCE 10% increase in rail capacity 26 miles (42 kilometres) of new tunnels under London 90 minutes journey time from Maidenhead at the west end of the line, to Shenfield in the east â&#x20AC;&#x201C; shaving 40 minutes and two changes off the current route ÂŁ14.8bn total funding available to deliver project 34

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LONDON’S

BIG DIG As Crossrail passes the halfway point, RICS members working on the scheme share the inside track on delivering Europe’s largest infrastructure project Words Cherry Maslen Illustration Ciara Phelan

KEEPING TRACK OF DEVELOPMENTS

IAN LINDSAY MRICS LAND AND PROPERTY DIRECTOR

or Ian Lindsay, Crossrail was a natural progression after five years working on large station developments for Network Rail, among them London Bridge, which involved the construction of the Shard, and the redevelopment of New Street station in Birmingham. He joined Crossrail in mid-2011, leading a team responsible for acquiring all the land needed to make the project possible. His role also covers commercial property development and public realm improvements around the stations, including 3m ft2 (28,000 m2) of mixed-use space crucial for project affordability and regeneration. In fact, Crossrail is the only project in the UK on which planning and delivery of stations, over-site development and urban realm work have been integrated. “It was a massive challenge to deliver one of the biggest and most complex compulsory purchase programmes ever,” says Lindsay.“We have served 11,400 compulsory purchase order [CPO] notices to landowners, including owners of some of the most prestigious areas of London such as Bond Street and Hanover Square.” Lindsay estimates that the cost of land acquisition alone was around £850m. CPO powers granted by parliament are limited to five-year periods and there was a pretty tight timeframe for the acquisition schedule. “Our CPO powers expired in July 2013 so we had to ensure we’d served all the notices before then,” he says.“It was critically »

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Crossrail

important to get our contractors on to the land within our timescale. I’m particularly proud of delivering the CPO programme to schedule.” Crossrail is the first UK rail project tasked with generating value from commercial development, in this case its target is more than £500m.“Commercial property development is absolutely central to our overall business plan. This is the first rail infrastructure project in the UK delivering an integrated package,” he says. “I worked in property-led regeneration before Network Rail, which is also a good background for Crossrail.” There is also the challenge of managing a fluctuating team of skilled employees whose roles are constantly changing. Lindsay directly manages around 35 professionals including surveyors, property managers, urban designers and development managers with shifting responsibilities. In terms of career opportunities Crossrail is a potential milestone both for those working on it and those yet to become involved with infrastructure projects. “We have a huge number of surveying roles on Crossrail from different disciplines, such as land surveyors, quantity surveying and development surveyors,” says Lindsay. “If we can prove that UK surveyors can deliver what is far and away Europe’s largest infrastructure project, that can only engender huge confidence in what we can achieve as a profession.” Lindsay’s role changes continually as this massive project moves through its stages.“Because of the gradual acquisition

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of land, we are dealing with an extremely dynamic estate,” he says. “But one of the attractions of this job for me is that there is no typical week. I could be negotiating compensation rights with landowners, ge tt i n g my p e rs o n a l protection equipment on and checking everything is going to plan either above or below ground, or meeting developers and local authority representatives, architects or urban designers.” While the heavy civil engineering and underground structures have been the initial focus for Lindsay, his next challenge is public realm improvements and over-site development, the latter set to be unveiled from the first quarter of 2017. The first public realm improvement – the canal-side plaza at Paddington station in west London – was completed last summer, but there will be further developments at every Crossrail station. “From a property perspective it’s tremendously exciting, like being handed all the stations on the Monopoly board,” adds Lindsay.“I hope to walk around London one day with my grandchildren and tell them: ‘This is what the old man did.’”

From a property perspective it’s tremendously exciting, like being handed all the stations on the Monopoly board

ON THE RAILS

NIGEL CASSWELL MRICS TRACK DESIGN MANAGER

igel Casswell first became involved with Crossrail in 2007, two years before construction began. Working for the railways division of Mott MacDonald, he spent nearly two years managing the alignment and coordination of track design for the central tunnels, followed by a further 16-month stint on design development and acoustical analysis to ensure a quieter railway. Since last year he has been with Atkins-Arup, under contract to Crossrail as track design manager, overseeing a team of alignment and structural engineers and acousticians. A geomatics surveyor with competencies in alignment design, digital mapping and contract management, Casswell has worked on such rail projects as High Speed 1 (from London to the Channel Tunnel) and east London’s Docklands Light Railway. But nothing compares with the complexity of tunnelling and laying track under central London. “We are a cog in the machine but the track is everything – the whole project depends on track geometry,” says Casswell.“What’s amazing about Crossrail is the incredible challenge of weaving a new railway through central London. When you think about what’s below ground, it’s hard to believe we’re achieving it – there’s an enormous number of

PLATFORM GAMES Curved tunnels at Tottenham Court Road (opposite) and linking Moorgate and Liverpool Street (above) stations were just two of the challenges to deal with

piles from tall buildings, before you start looking at service tunnels and the existing Tube network. There has been no challenge like this anywhere before. “We had to be extremely careful around areas such as Soho Square where buildings had to be protected against potential ground movement before tunnelling began.”Shafts 17 metres deep were constructed around the square to allow grout to be pumped into the ground to stabilise the earth. “One of Crossrail’s biggest challenges for us was aligning straight 240-metre long platforms in areas where tunnels needed to be curved,” explains Casswell. It was very much a case of mind the gap. “We had to adhere strictly to the current rules of a maximum 75mm horizontal gap between platform and train and a 50mm vertical gap.” Remarkably, Casswell’s team achieved alignment at all stations bar one.“Tottenham Court Road has a very slightly curved platform,”he adds. When sections of finished tunnel are delivered back to Casswell’s team, the moment of truth arrives when the as-built positions are compared to the design. Sometimes a redesign is the only solution. “I might get a phone call from the contractor’s surveyor asking us to redesign a section of track,” he says. “We’ve had to ‘wriggle’ the alignment in some cases to make track-form, train and the tunnel fit together. It’s all part of the process and I’m proud to be involved in the solutions.” » Q3 2014_MODUS A SI A

The sections between Tottenham Court Road and Bond Street stations, and under the Barbican estate, needed all the skills of Casswell’s acousticians. Strict compliance to avoid noise and vibration was essential.“We put the trackform on floating concrete rafts on rubber and sprung bearings,” he explains. Caswell talks of the very high number of geomatics surveyors involved in the project, including an army of tunnel surveyors guiding the tunnelling machines and asset protection surveyors monitoring buildings. With Crossrail on their CVs they can look forward to potential involvement in future infrastructure schemes. “There is plenty of scope for career development within the infrastructure sector for more chartered surveyors,” he confirms.

When you think about what’s below ground it’s hard to believe we’re achieving it. There’s been no challenge like this anywhere before

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BRINGING OTHERS ON BOARD

KEVIN LLOYD-DAVIES FRICS HEAD OF PROCUREMENT

evin Lloyd-Davies has been able to draw on his fourand-a-half years’ experience as strategic procurement manager for the London Olympics. He joined Crossrail straight from the Olympics in 2010, when Crossrail’s tunnelling contracts were already under way but system strategies were being developed for the construction phase. He took over as head of procurement in March this year, after three and a half years as deputy. “When I was working on the Olympics I thought things couldn’t get any bigger or better. But that was before I got involved in a project that’s going to have such a major and long-lasting impact on London,” he says. Lloyd-Davies’ quantity surveying background and broad construction experience have given him a solid base for a huge, complex project like Crossrail. He started out as a student with Laing Construction and has had extensive experience covering major projects on the contractor side,

Crossrail

then moving over to the client side and eventually becoming a consultant. He worked on the Olympics with his predecessor at Crossrail, former head of procurement Martin Rowark FRICS, who now has a role advising the UK Treasury on a new route map for procurement. “Detailed planning at the front end is crucial for a massive infrastructure project. We developed a procurement model for the Olympics that we evolved further for Crossrail and which is now being promoted as an industry model,” says Lloyd-Davies. “The biggest challenge of Crossrail on the procurement side is the sheer scale and complexity: £11bn of construction projects have so far been procured,” says Lloyd-Davies. “Key dates have been met and we have delivered to the budget. I am immensely proud to be part of that.” Preparing tenders on this scale and ensuring that the scope was being dealt with would have been a challenge for any team. But, as Lloyd-Davies says, when gaps appeared during the process they were always filled and targets met. Leading a procurement team at this level involves a pretty big management role.

TRAIN REACTION Eastern spur will cut journey time from Heathrow airport to Canary Wharf (opposite) to 40 minutes and bring direct connections from west London to the Docklands and Essex

“There are currently 23 people in my procurement team,” he says. “We have a mix of qualified civil engineers and surveyors. Approximately 50% are surveyors of different disciplines.” Procurement plans and procurement managers cover several categories, one of which focuses entirely on stations. Within this category each station will have different needs and requirements with no two the same. “I’m incredibly pleased with what we have achieved as a team,” says Lloyd-Davies. “We could never have done what we have without the right mix of like-minded professionals. Establishing that team has been and still is one of the most satisfying aspects of my role at Crossrail. It’s about recruiting the most capable people who can work together successfully.” With the High Speed 2 rail link from London to the Midlands and northern England in sight, surveyors can consider a future in procurement.“Big infrastructure projects mean big opportunities for surveyors,” says LloydDavies, who has a role on Crossrail until 2018.“As well as the big, sexy construction stuff, we have other roles, s u c h a s p ro c u r i n g maintenance facilities and refreshing the IT systems,” he says. We have yet to see m u c h a b o v e - g ro u n d construction, but LloydDavies promises it will be worth the wait.

The biggest challenge is the sheer scale and complexity: £11bn of construction projects have so far been procured

Q3 2014_MODUS A SI A

TOO GOOD TAPAS UP ON

Good food, great weather and a rebounding built environment sector. Is now the time to take that job in Spain? Colin Marrs reports

Flat broke Unfinished residential developments in commuter towns such as Sesena, 35km south of Madrid, became emblematic of Spain’s property-driven economic crisis (1) Home comfort Bilbao-based bank BBVA bought the Alhondiga residential scheme (2) in its home town during the financial crisis and is now developing the 108 flats through its Anida arm

RICS A SI A .ORG

T HREE YEARS AGO , TAKING A JOB IN S PAIN AS A SURVEYOR might have been considered a sign of madness. When the international recession hit, Spain took a huge knock. Unemployment rose to a peak of 27%. By May 2012, the credit ratings of several Spanish banks were downgraded, some to “junk” status. Problems, as elsewhere, stemmed from the property market. In Spain, its failure was memorably symbolised by half-completed developments and barely occupied housing estates. A flight of investment from the development sector hit firms involved in surveying hard. Tony Loughran MRICS, partner in the valuation department of Cushman & Wakefield’s Madrid office, says:“Austerity measures introduced in 2010 left us scratching around for work and 2012 was the worst year we had due to risks associated with the euro.” By August 2012, however, the situation had started to improve. As a condition of a €100bn (£85bn) loan made by the European Union in June 2012, the Spanish government created Sareb – a “bad bank”. Financial institutions that had undertaken the loose lending that triggered Spain’s 2008 crash were obliged to transfer toxic properties and loans to Sareb in return for government bonds. Sareb then started placing assets into portfolios to be sold to investors – spreading belief that a floor might have been reached on prices. Loughran says the effect of the new bank was palpable: “Almost immediately afterwards, confidence began returning to the market.” Eulalia Pensado, Regional Manager at RICS Iberia, reports that foreign money is flooding back into Spain in expectation of picking up bargains, while a rise in occupier demand has outstripped the increase in supply for three consecutive quarters. Opportunities for surveyors are booming: “There is proactive hiring – all the investors are hiring people to handle the properties,” Pensado says.

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INFOGRAPHIC IAN DUTNALL

MUCH TO GAIN FOR SPAIN Dwindling development has created a market where occupier demand has now outstripped supply, which should have a positive impact on property values and encourage construction starts Source: Savills, RICS

Spanish commercial property market

Available space % Occupier demand %

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David Johnson MRICS, director of Gleeds Iberica, suggests that lessons learned from the property crash are changing attitudes towards quantity surveying in Spain. Traditionally, that work was carried out by an architect or technical architect, as hiring a quantity surveyor was often not deemed necessary. Johnson says:“During the boom years, that didn’t matter because although your costs might have overrun by 20%, if you made a profit of 30% you were happy.” After having their fingers burned, and faced with stricter lending conditions, developers are seeking out the services of good cost estimators earlier in projects, he explains:“They are realising that if you pay out for our services but save more money by doing so, then it is actually a negative fee. The Latin suspicion of consultants is beginning to change.” Surveyors are also picking up work related to some of the distressed assets retained by banks, and owned by Sareb. Johnson says that Gleeds is now benefiting both from building surveying work on once-mothballed projects that might be salvageable, and in a new role as a cost monitor on development projects. He says: “We are working with BBVA on a scheme that was in distress. We started as project managers for the first phase and are now project monitors overseeing the work of another development manager.” The sharp improvement in prospects for the sector has brought its own challenges, says Loughran. After shedding staff and freezing recruitment in 2008, firms are now struggling to find personnel with the skills to serve

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WORTH THE COSTA Spanish REIT Hispania is one of a new wave $44K of investors set $30K up$28K to capitalise on the nation’s rebounding fortunes. Its first purchase was the Hotel Guadalmina Spa and Golf Resort in Marbella, which it bought in April for €21.5m (£17.5m)

clients. He says: “We have been hiring $115K at junior level $112K people $107K but are now looking at the next layer up – and it isn’t easy.” Down on the Costas, the feel-good factor is also spreading $76K $74K $72K to the residential valuations market. During the crash the $70K $60K drop in demand wiped up to 50% off property values, estimates Campbell Ferguson FRICS, who runs valuation firm Survey Spain, based near Marbella. He says: “The top end has stopped dropping, and some prices are now higher than they were at the bottom of the market.”But he adds that oversupply is still blighting values at the lower end of the market – smaller properties in harder-to-access locations. But non-native RICS valuers, he says, also face a new problem. Last year, rules were introduced that require valuations on properties for which a Spanish mortgage is being sought to be carried out by a Spanish tasador (assessor). “Apart from the extra cost to the buyer, it can be very difficult for us to agree a value with the tasadors,” says Ferguson. Furthermore, the cost of the tasador valuations rises with the size of the scheme. “Most international institutional investors would require an RICS valuation, so the requirement for a tasador assessment is effectively an extra property tax,”explains Ferguson. But, he says, there are few economies

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of scale to be gained from creating an in-house tasador function, so most of this work is subcontracted. However, in some areas, government reforms should make it easier for investors to enter the market. Pensado points to the efforts to unify regulations that relate to construction and planning. She says:“The reason you don’t see many large national chains in Spain is because the country has 17 different autonomous communities, and firms can’t afford to employ people to deal with the different regimes. Creating a common base should help change that.” Despite the challenges that remain in the property market, chartered surveyors in Spain are experiencing a new wave of optimism. And Johnson points out that the benefits are not just professional: “There are good work opportunities here – maybe not on the scale of Kuwait, but there is a good lifestyle. Wages might not be as high but nor are the costs of living. It would be hard to find as pleasant a place to live.”

REFERENCE POINT REPORTS AND RESOURCES >>Chartered Surveyors in Spain Network of residential surveyors that work and live in Spain. charteredsurveyorsinspain.com >>Latest RICS research on region RICS Spain Commercial Property Monitor Q1 2014. bit.ly/Q114propmonitor >>Organisation for Economic Co-operation and Development

Statistical and economic data on Spain. oecd.org/spain >>Moving2Madrid blog Practical tips on settling into a new home in the Spanish capital. moving2madrid.com/blog >>Pass The Ham Madrid-based Nicole Jewell’s quirky blog gets under the skin of Spanish culture. passtheham.com Q3 2014_MODUS A SI A

FROM ZERO TO HERO

The University of Technology Sydney’s Broadway building bristles with innovation, from its binary code cladding to its allseeing sensors. Amanda Birch reports

RICS A SI A .ORG

BROADWAY STAR The building occupies a prominent corner site in downtown Sydney and takes its name from the road on which it stands. Its distinct pattern and “gills” are intended to help it stand out from neighbouring developments.

N OW THAT THE A N GULAR ELEVATIO N S of the University of Technology Sydney’s (UTS) Broadway building are complete, most observers will no doubt be struck by the dramatic sculptural form of the building and the unusual gills or slits in the facade that reveal its glazed inner skin. The significance of the pattern cut into its aluminium cladding, however, is likely to go largely unnoticed. Few people, apart from the students and staff of the 474,000ft2 (44,000m2) Faculty of E n g i ne er i n g a nd I n for m at ion Technology, will appreciate that the motif represents the “1s” and “0s” of binary code that underpins computer programming language. The pattern spells out the names of both the faculty that will occupy the building from July and the university. Occupying a prominent corner site, the A$200m (£110m) property acts as a gateway to both the UTS campus and the city centre. This is a highly technological facility that will combine the latest in teaching and

CENTRAL PLANNING A crevasse-like linear atrium runs through the middle of the building both vertically and horizontally encouraging transparency and enabling the teaching, learning and social spaces to be grouped together.

Images Denton Corker Marshall

BINARY FINERY The building is wrapped in an envelope composed of 2,000 individual interlocked aluminium panels, laser cut with thousands of squares and lines that represent the “0s” and “1s” of binary language.

learning spaces with some of the most technologically advanced tools for research. It is also opposite Fraser Properties’ One Central Park scheme on which high-profile architects such as Jean Nouvel and Foster + Partners are working, which means the building has to work hard to get noticed – a key driver behind architect Denton Corker Marshall’s striking design. The 12-storey, concrete-framed faculty has a double-layered skin that consists of a traditional curtain wall system and, externally, binary cladding pinned off the glazing. Typically, the vast sections of metal would seem enough to catch the eye. But to add further interest and relief, random slashes that closely resemble shark gills have been made to the material. “It’s almost as if the aluminium is pulled apart,” explains Ian White, director at Denton Corker Marshall. “One side of the cut is pulled out in a curvilinear form to create an opening. The cuts also vary in length and how far they come out

of the face of the screen to form a sculptural surface to the cladding.” But it is not just the facade that is so innovative. The lecture rooms have been designed to accommodate a new, more collaborative teaching method called “flipped learning”. Turning conventional teaching on its head, students watch lectures online at home and go to university to work with their peers. The building will also deploy a range of innovations designed to meet the needs of its 5,000 student and staff population. For example, the Data Arena, a 10m-diameter, fully immersive audio-visual theatre, will provide a virtual reality experience that enables users to simulate real-life situations, which UTS hopes will push it to the forefront of teaching and research. The u n iversity’s susta i n abi l ity credentials are embedded in the property, too. Smart controls are being installed to save energy. When rooms are unoccupied, built-in sensors will switch off the lights

and the building management system will reduce the output of the air-conditioning. Nigel Oliver FRICS, director of the program management office at UTS, who is overseeing the masterplan for the entire A$1bn (£557m) UTS campus redevelopment, says: “This is the first university campus I’ve been involved in. The construction process, and the planning and delivery process are not all that dissimilar to what I’ve done previously in the corporate sector.” But he admits it has been a challenge to complete a high-specification building so stuffed with premium-grade technology. “University buildings have high levels of technology, particularly in relation to laboratories and lecture theatres,” says Oliver. “Given that the occupiers are engineering and IT students who are extremely aware of what’s available technologically, you have to meet their expectations – there’s no point finishing a building in five years and furnishing it with technology that’s out of date.” Q3 2014_MODUS A SI A

Careers / Business / Legal / Training

Foundations CAREERS Don’t miss that chance in the spotlight. Get your CV wrong and your prospects of an interview could be doomed from the start

SHOW YOUR BEST SIDE

APPLYING ON SPEC

Being vague “In building surveying, A-levels in politics and PE are not the same as maths, physics and chemistry,” says Angus Taylor FRICS, partner at property consultant Bruton Knowles. The same goes for professional experience. “Mention specific clients, or if it’s confidential, client type, and your specific role.”

01 Check industry CV cover-ups Lee Fallon, director at recruiter Benson sources for deals and Clarke says: “Artificially extending lengths of service company growth to cover periods out of work is easily spotted with plans and target reference checking.” He advises: “Clearly state any employers likely to be period out of work and the reasons for it, but explain offering jobs you want. what you did while searching for a new role, such as 02 Think of yourself voluntary work or any industry involvement to keep as a product you want your skills current.” the company to buy. Bland statements Claims of being “a team player” or Appleby Associates’ “good communicator” mean nothing without evidence. Alexander says: Explain how you used your skills, and the results. Marcus “Include a covering Alexander, managing director of executive career letter that, in effect, consultant Appleby Associates, says: “If you are trying says: ‘You are looking to highlight a specific skill, say what you did, then how for this. I’ve got it.’” you did it, then the outcome.” 03 Target the right person. Surveying recruitment specialist Kevin Rose at Conrad Consulting says: “Candidates send me emails addressed to my rivals. The same mistake in an application to a company will rule you out.” 04 Follow up with a call to explain why your skills would be of benefit. 44

RICS A SI A .ORG

Hiding your extrovert side “Employers want people who are confident being the face for the company and comfortable with meeting senior executives,” says Rob Joslin, director of property and building recruitment company Capstone. Mention your membership of a senior industry networking group, or participation in a high-profile industry event. Too much jargon. Alexander says: “The individual receiving your application may be a human resources assistant who does not understand technical terms and so fails to pass your application to the decision-maker.” Make your achievements clear enough to be understood by anyone, but give enough technical details to prove your credibility to the hiring manager. Failure to highlight business development skills “The ability to generate fee income and new business attracts employers,” says Joslin. If possible state how much you have increased fee income and the number of new clients you have won in a key achievements box on the front of your CV. Complex CV layouts Coloured papers or obscure fonts that aren’t commonly available could cause formatting problems. Think twice about attaching pictures of projects, too. “They slow email loading and fill up recruiters’ inboxes,” says Peter Moore MRICS, managing director at recruiter Macdonald & Company. Personal opinions Keep them to yourself. “Criticism of former or current employers indicates lack of discretion,” says Moore. “But do include details of outside interests that show self-reliance and boldness.”

NEXT EDITION: HORRIBLE BOSSES WANT TO TAKE PART in future careers advice columns? Tweet using #RICSmodus

ILLUSTRATION JAMIE PORTCH PORTRAIT SAM CHRISTMAS WORDS LINDA WHITNEY

We all know that a good CV has to be error-free, up to date and tailored to the vacancy, but there are plenty of other mistakes that can scupper your application. Here are eight of the worst CV errors – and how to avoid them.

Foundations

BUSINESS BRIEF

IMPROVING WORKPLACE EFFICIENCY Apply the productivity equation to the workplace It’s a simple efficiency ratio of output over input. Input relates to cost and time. Most people trying to improve efficiency reduce costs first. But increasing space efficiency can also improve productivity. Don’t ignore your most important assets: people When you create a new space, ensure it does not negatively affect the performance of your employees and the business. Space for concentration and focused work is a must While collaborative spaces can facilitate creativity and productivity, it is also essential to have areas where people can focus. Develop an agile working environment As most people spend only around 50% of their time at their desk, you can reduce the number of desks in the workplace by implementing desk sharing. Be sure to cater for different personality types The most successful teams have a balance of extroverts and introverts. Each type will need different kinds of space to perform their role to the best of their abilities. Nigel Oseland is a workplace strategy consultant in the UK corporate solutions team at JLL. @oseland

MY WAY

Philip Lo FRICS

GLOBAL BOARD CHAIRMAN, RIDER LEVETT BUCKNALL

Compared with other office-based jobs, I think quantity surveyors have more active and challenging opportunities. We’re always out and about attending meetings, visiting construction sites and liaising with so many people – such as clients, consultants and contractors. Following a project from its inception to its completion is like watching a child grow. Each project presents its own challenges and when it’s completed, I feel extremely satisfied. After school, I had a choice between studying architecture or quantity surveying at the University of Hong Kong. As I had less interest in design, I chose the latter. Despite this, the two courses were interlinked and I mixed with a lot of architects, who later became great friends and partners at work. I’ve been with the Rider Levett Bucknall (RLB) family for more than 33 years now.

I joined in Hong Kong in 1981 after graduating from university, became an associate in 1985 – and at the same time became a member of RICS – and was appointed a director in 1988. I spent three years in the Sydney office from 1996 to 1999 and came back to Hong Kong as a director in 1999. In 2002 I was appointed managing director, and later became chairman of RLB Hong Kong/China in 2010. Last year, I was appointed global board chairman. Being an RICS member is important for our work. RICS is a global leader and is growing the profession in key economic and political markets such as China and India, where it can demonstrate the importance of having good professional standards and practices. The promotion of ethics is essential. I believe it’s vital to keep on learning. By observing others, we can learn what methods of success they use, and apply them to ourselves, while also learning from their mistakes and our own. Don’t be afraid of failure as this is a way to learn and grow – it’s how you make your next opportunity. rlb.com

“Following a project from its inception to its completion is like watching a child grow. Each project presents its own challenges and when it’s completed, I feel extremely satisfied” Q3 2014_MODUS A SI A

A SUCCESSFUL SUCCESSION

S URVEYOR S WHO HAVE BUILT UP A SUCCE SS FUL practice with a strong reputation and an impressive talent base are often keen for what they have created to continue. But how do you pass on the baton? And, more importantly, how do you leave the business without damaging what you’ve created? The sooner you start planning your exit the better. This is because your long-term plans – that is, when you want to exit and what form the business will take once you have left – should guide your short-term decisions. If they do not, then you may encounter obstacles further down the line. For example, if you want to attract a buyer to your practice, then you need time to get it looking its best (box, opposite). Similarly, if you want the business to continue, it will be important that there are others who are capable of taking hold of the reigns. The timing and nature of your exit should influence key decisions about developing your staff, recruitment, investment in the business and even which leases, contracts and other arrangements you make. THE IDEAL SCENARIO Surveying practices that facilitate a smooth and successful transition after the departure of a senior team member demonstrate several common factors: a carefully planned succession approach; a phased exit from the business by the senior surveyor, who typically works NEXT EDITION: INTERNSHIPS fewer days in the years leading up to his or her departure or adopts a consultant HOW TO attract, hire and manage role; clear communication to the staff, interns for their benefit and yours. clients and the practice’s other contacts; To take part in future business advice strong alternatives fielded to take over columns, tweet using #RICSmodus 46

RICS A SI A .ORG

NURTURING TALENT Senior teams often underestimate how hard it is to retain clients that have been handed over during the course of a succession. This is because the successor was not involved in forging the initial relationship. So allow enough time and training resources to support your next generation’s success. Clarify what is expected of them and ensure the handover period is slow. This will give the departing surveyor’s clients enough time to adjust to their new point of contact, while their traditional one is still around. In terms of the financial implications of a promotion, within a partnership structure this often takes a surveyor from a salaried partner role to equity partner status. Here he or she is expected to invest capital in the business, and typically this is done in the form of an independent loan from a bank, supported by the practice. However, there are several approaches: buying into the ILLUSTRATION JAMIE PORTCH

BUSINESS Meticulous planning is the key to leaving your practice in good hands

the departing surveyor’s portfolio; and a supportive, clear and up-to-date partnership agreement or shareholders’ agreement that doesn’t pose an obstacle to the plans. Good planning is imperative. It helps if a firm’s senior team allocate time to discuss their respective exit goals periodically. They will need to agree, plan and budget for the cost of the exit (eg, the withdrawal of capital in the case of a partnership). To avoid a mass client exodus when a senior team member leaves, they should also look at the management of client portfolios and what specialisms will be needed to ensure continuity. It is also important that the partnership or shareholders’ agreement supports rather than hinders the exit plans. This means keeping it up to date and amending it to reflect any changes as they emerge. The more time you allocate to succession planning, the more opportunities there are to iron out any conflicting views across the senior team.

Foundations

LEGAL 101...

practice over a five-year period via a restriction of profit share; deferred consideration – in which the partnership lends the individual the money and, in the case of limited companies, ownership can be achieved in a tax-efficient approach by using an enterprise management incentive scheme. Partnerships and limited liability partnerships (LLPs) should bear in mind the fact that recent legislation has clarified what does and does not constitute an equity partner. It is important that none of your fixedshare equity partners now falls foul of the new legislation, which could treat them as employees with a liability for

“The timing and nature of your exit should influence decisions about developing your staff, recruitment, investment in the business and even which leases and contracts you sign” national insurance contributions. There are solutions to this, and it is recommended that you take professional advice. Planning your exit from the business is best undertaken sooner, rather than later. Key to a smooth transition will be a strong plan, open communication, an accommodating partnership or shareholders’ agreement and careful nurturing of your next generation. STEVE FOSTER is a principal at Shipleys. shipleys.com

LOOKING TO SELL? If you are hoping to attract a buyer for your practice, here are five activities to help it look its best: Rationalise your practice’s structure by eliminating any complex structures and consider separating business assets or components that would not be part of the sale

Maximise its management capability to ensure adequate skills remain after your exit. Consider a handover period with a form of consultancy or employment arrangement Review all expenditure and eliminate anything that is unnecessary to improve the firm’s profitability Tidy up the balance sheet, improve debt recovery and review the status and value of your property and other fixed assets Formalise contracts if you have any understandings or informal agreements in place.

Be prepared for the weather EUGENIE LIP FRICS director at Davis Langdon KPK, an Aecom company

of work impracticable? Was completion delayed? And has the contractor taken all reasonable measures to avoid or reduce the delay?

As construction projects become more complex, delays are inevitable. Although contracts provide for adverse weather conditions as a time extension event, without a clear approach on what it means and how it is to be applied, assessing the length of an extension can be difficult. Contract administrators should consider the following when dealing with time claims.

Beware the impact of haze conditions When air pollutants in smoke haze caused by open burning reach unhealthy levels, it can impact outdoor construction activities and crane operations. Although construction productivity may be affected, the haze is not a sudden unexpected phenomenon, but occurs every year in the dry season. By taking into account historical records and the time of year, an astute contractor will take steps to reduce the impact of hazardous air quality. Unless there is a national directive to stop all work, haze conditions do not automatically entitle a contractor to a time extension. With efficient resource planning and using the float in his programme, a contractor should be able to respond to such events.

Ensure the contract clearly defines the assessment methodology It is common to use historical meteorological data based on average rainfall measurements over the past 10 years and compare them against the conditions recorded at the weather station closest to the site. Whatever the methodology, it is important to make it clear in the contract. And although the contractor must show that the rainfall is more than the average recorded in the past 10 years and was exceptionally adverse to cause a delay to the works, the decision remains largely a matter for the contract administrator. Be sure that progress was affected When deciding extensions of time, the contract administrator should ask: is progress affected? What is the stage of the works or condition of the site? What is the nature of works being carried out? Is continuance

Check contract provisions Although most contracts provide for adverse weather, it is not uncommon to find it deleted in amended forms. Such deletions can have pricing implications brought about by the risk transfer of an event, which may or may not occur beyond that deemed as exceptionally adverse so as to cause a delay. With beneficial weather – as opposed to adverse conditions – the employer should be aware that no adjustment to the contract sum or reduction in the time for completion of the works can be made. aecom.com Q3 2014_MODUS A SI A

RICS books

expenditure, too. In simple terms, the building information “model” is made up of objects, such as the door, the wall or window, and we can work with the designers to attach intelligent data that different stakeholders in the process can utilise.

BRAIN GAIN

SKILLS DEVELOP YOUR BIM EXPERIENCE Visit rics.org/ trainingevents

From a quantity surveyor’s point of view, BIM can help provide more cost certainty, and speed up the quantification process. This means surveyors can spend more time working with designers in a collaborative environment, looking at alternative design solutions and defining which option provides the client with the best value. BIM allows surveyors to capture data to support their cost management services and the development of pricing documents, which we can use to advise clients not just on capital expenditure, but on operational

rics_spreadsheets_for_val_1st_edition_cover_03_07_13_Layout 1 23/07/2013 11:42 Page 1

1st edition

Consisting of a series of 50 ‘lessons’, from theory to application, this book takes readers through the many uses of spreadsheets for real estate valuations, from basic formulas to the advanced application of functions.

This book helps readers to manage the risk involved in the delivery of valuations by explaining methodology from first principles to improve their confidence in using spreadsheets as a valuation tool.

RICS A SI A .ORG

Paul Ben-Nathan

About the author

Paul Ben-Nathan is a Chartered Surveyor and a Registered Valuer. He has worked for over 15 years on the valuation of real estate, mostly spent at Drivers Jonas/Deloitte Real Estate. At Deloitte Real Estate Paul has worked on the valuation of specialised properties, ranging from sports stadia to airports, as well as covering traditional investment grade assets.

Paul has undertaken a joint lecture tour with CIPFA on the valuation of specialised properties and lease accounting.

Demonstrates how Excel calculations and formulas can be used to help you to calculate valuations accurately. rics.org/shop: 19683 £45

To get a handle on the 3D environment, I recommended obtaining a trial version of some of the free viewing software that is available as a starter and getting familiarised. Assess your work processes and think about how BIM can work for you. Get involved with your regional BIM hubs, and find out more at the government’s BIM task group website: bimtaskgroup.org. Collective best practice is beginning to form and the more people share their knowledge and experiences, the better it will be for creating a future set of standards. ANNA THOMPSON MRICS is area manager and cost management BIM lead UK at Turner & Townsend. turnerandtownsend.com

It is: An app that helps construction professionals, contractors and architects collaborate on project plans, specifications and photos using a tablet or smartphone. It does: PlanGrid allows you to maintain one master set of plans and drawings that can keep your team up to date at any time, no 48

1st edition

Spreadsheets for valuations: 50 worked examples using Microsoft Office Excel 2010

This book is written by an expert in the field of valuation, and provides readers with best practice tips for applying Microsoft Office Excel 2010 to real-world situations.

Spreadsheets for valuations will appeal to valuers across the board, from students and trainees to practising professionals with a particular problem or experienced surveyors looking to brush up on their spreadsheet skills and improve business processes.

APP LAUDED

PlanGrid

www.rics.org/shop

Spreadsheets for valuations:

50 worked examples using Microsoft Office Excel 2010

Paul Ben-Nathan

Building Information Modelling (BIM) is about people, process and culture with the software being the enabler. The aim is to create a more collaborative environment in which we share information and work together, unlike previous, more traditional approaches.

Tenth edition, updated to reflect recent changes to the building regulations, as well as new material on the latest technologies used in domestic construction. rics.org/shop: 19772 £25.99 Spreadsheets for valuations

BIMMING WITH CONFIDENCE

Property professionals really need to understand what BIM is and how it supports the full supply chain. You can then think about how it will fit in with your existing set of tools and processes within your organisation. The model is only as good as the information contained within it – so we need to think about the type of data we, as surveyors, want in the model, as well as how the client is going to use the model.

matter where they are. Once you have uploaded plans in PDF format to a secure account online, they will synchronise in real time and be accessible to anyone using the app on the project team. What other features are useful? You can mark-up design problems or construction issues on your plans using the annotation suite, which will be shared with everyone on the team. You can take photos,

Twelfth edition, providing an overview of the need for measurement and the rules at diff erent stages of the design or project cycle. rics.org/shop: 19903 £32.50

which the app will automatically tag, synchronise, and archive, saving hours of manual data entry. Furthermore, all notes, mark-ups and photos will be securely backed up online, so at the end of your project you can export all the data in an easy to download file. Price: Free (in-app purchases available) Search: PlanGrid at your preferred app store.

Foundations

EVENTS

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BUSINESS BRIEF

ATTRACTING NEW TALENT TO YOUR FIRM Engage with universities and graduates early on Go into universities to take an active role in helping undergraduates get to know what your company is about, and whether they would wish to work with you. Don’t just focus on technical qualifications A broad range of skills, experience and approaches are what builds a successful business. Make sure you offer APC support and drive graduates to get chartered at the earliest opportunity. Promote a positive culture Work should be fun, flexible and empowering. Remember that the extracurricular activities are just as important. Show graduates that they will have opportunities Progression is important, and while a common process for promotion is to wait until a position becomes vacant, try to promote people as soon as standards are met. Offer a competitive package Staff benefits could include healthcare, gym membership, flexible working, professional membership, profit share, or a maternity package to name but a few. STEPHEN GEE MRICS is managing partner at John Rowan and Partners. jrp.co.uk

HONG KONG

››Public Works Community Engagement – A Critical Element in Project Delivery 28 August New developments often have to go through rounds of public engagement exercises and a very comprehensive list of consultation sessions with all kinds of stakeholders. Issue management specialist Walter Jennings, managing partner of Kreab & Gavin Anderson, will share his views and experience on the best practices in bringing the local population into the process of future development. ››RICS HKIS Joint Valuation Conference 14 November Jointly organised with the Hong Kong Institute of Surveyors, the fourth edition of RICS Asia’s flagship conference in valuation will explore how value changes in an evolving world, where the role of policies, compliance and client mandates ascends. Among the topics for discussion are: IFRS13 – fair value valuation; intellectual property valuation; mass appraisal – property tax valuation in the region; as well as the liberalisation of the REIT code.

››Business of Intellectual Property (BIP) Asia Forum 2014 4-5 December Co-organised with the Hong Kong Trade Development Council, RICS will host a break-out session at the forum. A panel of renowned lawyers, accountants and valuation experts will deliberate the key elements of IP valuation. The new RICS guidance notes on IP valuation will also be launched. ››International Heritage Conference 9 January 2015 Themed “Toward a sustainable model for adaptive re-use of heritage buildings”, this conference aims to critically review the progress Hong Kong has made to preserve heritage buildings, showcase successful overseas case studies, and to provide a platform for regulators, businesses, operators, end users and professionals to discuss the challenges, brainstorm solutions and agree on a set of recommendations to governments.

MALAYSIA

››RICS ASEAN BIM Conference 2015 March 2015, Kuala Lumpur A conference gathering key industry leaders and practitioners of

BIM (building information modelling), who will present case studies of key projects from around the world. Delegates will listen to practical examples and best practices that will provide invaluable and usable knowledge for their own organisations’ BIM projects and plans.

SINGAPORE

››Singapore Gala Dinner 12 November The inaugural annual dinner will celebrate the

contribution members have made to the property, land and construction sectors within Singapore and the ASEAN region. The event will also celebrate RICS successes in achieving industry and government recognition, professional development and raising the standards of professionals. The dinner will bring industry leaders and professionals together for a night of fine dining, networking, fun and celebration.

RICS HONG KONG PROPERTY AWARDS 2015

March 2015, Hong Kong

The RICS Hong Kong Property Awards showcase the most inspirational people, property teams and developments in land, property, construction and the community. The current Property Person of the Year is Marco Wu FRICS (interview, page 22). Nominations for the fourth edition of the awards will be open in October. Stay tuned for more details at ricshkawards.com Q3 2014_MODUS A SI A

Mind map

CAN BRAZIL ATTRACT FOREIGN INVESTMENT? Ramsey Tadros FRICS director of asset management and investment at Sonae Sierra Brasil and Chairman of RICS Brazil

Without the support of the authorities and the private sector, it will be difficult to carry out business to international standards and for Brazil to be considered a safe haven. If Brazil wants to become a rich and developed economy, transparency and professionalism are non-negotiable.

If Brazil seeks to integrate itself into the global financial and investment markets, it must adopt International Financial Reporting Standards. This means that standards in valuation, such as those from the International Valuation Standards Council (IVSC), need to become mandatory.

In the past, strong economic performance was a catalyst for strong development. However, a subsequent slowdown in the economy has created an oversupply in some asset classes in select regions.

ILLUSTRATION SILENCETV

The residential property market shows signs of plateauing and developers in some areas are offering aggressive incentives to prospective purchasers. But there are signs of an oversupply in the office market in SĂŁo Paulo and Rio de Janeiro and in retail in some smaller cities.

By adopting RICSâ&#x20AC;&#x2122; globally recognised standards, the Brazilian public and private sectors can promote a credible, transparent and professional image to the global markets.

RICS A SI A .ORG

2-3 DECEMBER, 2014 GRAND HYATT, HONG KONG

Join top-level global property professionals

Bridging the East and the West for Global Real Estate Gain in depth insight into: • Asia Pacific inbound and outbound investment flows • Retail Real Estate trends • Regional development opportunities and projects

Network with industry leaders

Celebrate excellence with prestigious awards

FOR MORE INFORMATION Claire CHAUSSIDIERE

claire.chaussidiere@reedmidem.com

www.mipimasia.com

Gold sponsors

Silver sponsors

RICS HKIS Joint Valuation Conference 2014 Value in a Changing World –

Policies Compliance and Client Mandates

14 November 2014 (Friday) 0900-1700

Harbour Grand Hong Kong 23 Oil Street, North Point, Hong Kong

Highlights of Event • IFRS13 – Fair value valuation • Intellectual property valuation – Methodology and case studies • Mass appraisal – Property tax valuation in the region • Liberalization of REIT code

Speakers • Mr Hubert Chak, Director (Finance), The Link Management Limited • Mr Nova Chan, Partner, Valuation Advisory Services, PwC China • Mr David Faulkner, Chairman, RICS Asia Valuation Professional Group Board • Mr Joseph Ho, Chairman, HKIS General Practice Division • Madame Liu Ping, Vice President & Secretary General, China Appraisal Society • Mr Robert McIntosh, Executive Director, CBRE Hotels, Asia Pacific The programme is subject to change and updates. Please visit event website for latest information.

Book your place today!

ricsasia.org/jvc2014 +852 3159 2994