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THE YEARLY WRAP UP

FEATURING INFINITE VALUE AWARDS GALA DINNER RETROSPECTIVE SPECIAL HOW TECHNOLOGY IS CHANGING THE WORLD HOW BIM IS SHAPING OUR FUTURE

HOW TO BECOME A GREAT LEADER UNDERSTAND HUMAN BEHAVIOUR AND BECOME A GREAT LEADER

DECEMBER 2015


08

COVER STORY HOW TECHNOLOGY IS CHANGING THE WORLD

Information technology is changing the way we live. The use of Building Information Modeling (BIM) is spreading rapidly through the Global Design and Construction Industry. Quantity Surveyors and associated industry professionals such as Architects, Engineers and Contractor Firms, are being drawn to this method of working due to the practical efficiencies and integrated processes. Learn how this can help you and your business now and in the future.

17

INFINITE VALUE AWARDS

We look back at the Australian Institute of Quantity Surveyors event of the year, with a special feature on our major award winners and gala dinner.

Managing Editor Lee Edmondson Advertising Manager Lee Edmondson Graphic Designer Guilherme Santos AIQS CEO Grant Warner

02 04 08 35 REGULARS 37 40 DECCONTENTS 2015

Editorial Contributions The Australian Institute of Quantity Surveying encourages readers to submit their articles relating to quantity surveying, the built environment and associated industries including; construction economics, cost estimating, cost planning, contract administration, project engineering and the macroenvironment. T: +61 (02) 8234 4004 E: ledmondson@aiqs.com.au

FROM THE CEO

SNAP SHOT

COVER STORY

THE INDUSTRY BUILDING COST INDEX AVAILABLE IN PRINT ONLY

EVENTS & SOCIAL

Subscriptions The Building Economist is available to AIQS Members online. If you would like to receive the print version, subscribe for 1 year (4 editions) for $110 (inc. GST) or purchase a single edition for $30 (inc. GST) at www.aiqs.com.au. Disclaimer The Institute does not take any responsibility for the opinions express by any third parties involved in the development of the Building Economist Magazine.

Advertising To advertise in the Building Economist, contact Lee Edmondson (AIQS Marketing & Communications Manager) for more information on available opportunities. Lee Edmondson Marketing & Communications Manager T: +61 (02) 8234 4004 E: ledmondson@aiqs.com.au W: www.aiqs.com.au

THE BUILDING ECONOMIST - DECEMBER 2015 - 1


FROM THE CEO

The Year that Was "Sometimes the Winds of Change help us find our true direction. This year ushered in the beginning of significant changes for the Institute. From a change in President and a restructuring of the Head Office, to the commencement of a Strategic Plan that will revitalise the Institute"

2015 was a year in which we saw continued development of the AIQS Academy, with the release of 27 topics, currently live and now available on the Institute's website, a highly successful Infinite Value Awards (IVA), establishment of a new certification for Members, a change in President and significant changes in Head Office personnel aimed at increasing stakeholder engagement and improved Member services. The AIQS Academy is being developed to provide both a pathway to membership as well as providing a vital source of CPD activities for existing Members. When fully developed by mid-2016, the Academy will have up to 100 topics available online for Members and prospective members. Members have already commenced utilising this strategic initiative which is accessible via the Institute’s website. The 2015 IVA Gala Dinner in Melbourne turned out to be the Black-tie event of the year with over 170 attendees hanging off every word of MC Max Walker, applauding our winners, and dancing to the vibrant tones of 'The Valeries'. Once again the calibre of finalists was extremely high with the Lend Lease 2015 Professional of the Year being awarded to Lucy Eng, for her work in promoting the Quantity Surveying Profession as well as being a strong advocate for women in construction.

The Lend Lease 2015 Project of the Year was awarded to the Port Arthur Penitentiary Conservation Project in Tasmania. Chosen for its structural design solution for the Port Arthur Historic Site to improve overall structural sufficiency, enable public access and provide storm and sea wave impact mitigation measures. The Institute was honoured to have the Honorable Lilly D’Ambrosio, Victorian Government Minister for Industry and Minister for Energy and Resources attend the Gala Dinner and present the Government Project Award. The Certification, Certified Quantity Surveyor, was established and will be rolled out in the New Year as part of a program to raise professional and technical standards across the Institute and to raise the profile of the profession more broadly. At the Institute’s Board Meeting in October, Peter Clack was elected Institute President, with the Board acknowledging the significant contribution of retiring President, Mark Hampson who successfully guided the Institute over the past two years. The Institute’s 2015-2020 Strategic Plan commenced with a restructuring of the Head Office to deliver the resourcing required to deliver this Plan. A new team is now in place, with a focus on improving stakeholder engagement, provision of increased member services and ultimately growth in membership numbers. 2016 will see further changes as we map out the operational requirements and begin to deliver on the 2015-2020 Strategic Plan. There will be significant engagement with Members, their firms and their clients to promote the Profession, deliver broader, improved and relevant educational and CPD services, establish increased professional and technical standards, Leader Forums and the provision of leading edge information on topics of direct relevance to Members.

THE BUILDING ECONOMIST - DECEMBER 2015 - 2


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SNAPSHOT

Industry News BIG CHANGES COMING FOR RESIDENTIAL BUILDING, NONRESIDENTIAL BUILDING AND ENGINEERING CONSTRUCTION The Australian Construction Industry Forum (ACIF) released its latest 2015 forecasts on Monday 23 November, with a detailed analysis of major variations since its last forecasts were published in July. The forecasts outlined the changes in demand for the next decade for residential and non-residential building and engineering construction and therefore the employment prospects of 1 million Australians.

NSW • sydney to revolutionise

transport to embrace growing city Sydney is the country’s most populated city with more than 4.8 million residents. Sydney’s existing rail networks are now 10 to 20 per cent slower today than in 1992. In a strong case to modernise the state’s public transport system, the New South Wales government has invested $2 billion in cultivation of the Sydney Metro project, which aims to revolutionise the rail network. With Sydney’s population expected to grow by 1.6 million people over the next two decades,

The latest industry forecasts show the crucial role the building and construction sector is playing in re-balancing the Australian economy, as it transitions from mining and housing booms towards moderation in a services based economy. The ACIF Forecasts include demand for work across three industry sectors, residential and non-residential building plus engineering construction, and 20 work types, for all states and territories, as well as labour, and construction costs. “The November 2015 ACIF Forecasts highlight the quick pace of change in our economy, with major changes in our outlook for building and construction across Australia since our last forecast,” said Adrian Harrington, Head of Funds Management for Folkestone and Chair of ACIF’s Construction Forecasting Council, which produces the ACIF Forecasts. “The November 2015 ACIF Forecasts shave off between $2-4 billion per year for the next three years in anticipated work demand. This is a substantial change in the prospects for businesses large and small, from designers and constructors to individual tradespeople as well as young people seeking to enter the workforce. “It will also have significant implications for the Australian economy as it continues to transition away from mining.”

the Sydney Metro will provide room for an extra

“The big shift in the outlook largely reflects the dip we are experiencing from a recent

100,000 train customers per hour at peak times.

peak in spending in Residential Building, plus the continuing decline from the peak

These upgrades come in addition to the $1.6

in Engineering Construction we enjoyed with the mining and resources boom,” said

billion Sydney Light Rail which aims to replace

Kerry Barwise, head forecaster for ACIF.

all buses on George Street, extending to the city’s South East Suburbs to increase Sydney’s

“Australia’s macro story is changing, and this affects requirements in building and

inner rail capacity, with works beginning in

construction. Population growth rates have been revised downwards, reflecting

October 2015.

falls in immigration from recent peaks. The reduction in growth in the working age population also has profound implications for future employment, unemployment and

The Moorebank Intermodal Terminal has also been gaining traction, with aims of doubling the proportion of freight moving through Port Botany by rail to 28% by 2020. It is expected the precinct will provide capacity for around 250,000 containers by 2017 and up to 1.05 million import-export containers by 2030.

economic growth.” The ACIF Forecasts are produced by ACIF’s Construction Forecasting Council which comprises representation from across the industry and are based upon information sourced from government reports, economic reports and major projects data from Cordell Information that are scheduled or in progress across Australia. To subscribe to ACIF Forecasts or purchase the full Australian Construction Market Report go to www.acif.com.au.

THE BUILDING ECONOMIST - DECEMBER 2015 - 4


QLD • prepares for substantial

growth in the construction sector The Queensland government has committed more than $10 billion towards infrastructure in the latest state budget. 21 million people visit the capital city of Brisbane each year, with international visitors increasing by more than 9.8 per cent over the past year. The $2 billion Queen’s Wharf Brisbane redevelopment will host an integrated resort and entertainment precinct, featuring the state’s newest casino, the introduction of Brisbane’s first six-star hotel, 50 new bars and restaurants, as well as a public precinct which is expected to host up to 190,000 people. With construction expected to commence in 2017, the project will create 3,000 new jobs, with projections of adding an additional $1.69 billion to the Queensland economy, along with 1.39 million new tourists annually.

VIC • population growth shapes infrastructure Victoria is Australia’s fastest growing state by population and is experiencing migration growth from New South Wales and South Australia, adding approximately 97,500 people in the period leading up to March 2015, a 1.7% increase from the previous period. In September 2015, the Victorian parliament introduced legislation for the creation of Infrastructure Victoria, an independent body which aims to facilitate Victoria’s 30-year infrastructure strategy, assisting the state’s pipeline of major projects. The legislation proposes to take the short term politics out of infrastructure planning and aid in the progression of infrastructure development over the 9,990 square kilometres covering Greater Melbourne. Victoria is experiencing a renaissance in urban renewal projects, with multiple developments occurring in some of our state’s most popular areas and landmarks. Projects include; the E-Gate Urban Redevelopment - a prominent urban renewal plan to develop 20 hectares of underutilised rail yards sites expected to generate $3-4 billion worth of investment and creating more than 5000 jobs over the next 25 years, the $338 million Rod Laver Arena Refurbishment – a 27 year old arena transformed into a state-of-the-art facility and the $250 million Queen Victoria Market Precinct Renewal - an upgrade expected to create 9,000 jobs once complete, with an additional 12,000 jobs in the surrounding areas. Plan Melbourne Refresh is another initiative by the Victorian government to achieve better governance, planning, regulation and funding options for the state.

QLD's 2nd largest city, the Gold Coast has witnessed a near 30% increase in population

This edition of the Industry News was brought to you in

over the past decade alone and has been

association with Expotrade. Facts and figures featured have

announced to host the Gold Coast 2018

been provided by Expotrade www.expotradeglobal.com/

Commonwealth Games, an opportunity presenting a huge boom to the development of infrastructure and tourism. The construction of

over the next five years and generate more than

PAQS 2016 CONFERENCE

1,500 jobs during its construction.

The New Zealand Institute of Quantity Surveyors (NZIQS) will host the 2016 Pacific

the Commonwealth Games Village will inject an estimated $500 million into the local economy

(Asia) Association of Quantity Surveyors (PAQS) Congress, the theme for the As part of infrastructure preparation for the

Congress being "Building for the Future – A Global Dilemma". The 2016 Congress is to

Commonwealth Games, $64 million will be

be held in Christchurch on May 20-24th 2016, with an expected 300-400 delegates.

spent on reducing congestion across Gold Coast’s roads, along with more than $320 million to fund construction of the Carrara precinct, athlete’s village and upgrades to existing sport and community infrastructure.

After a sequence of large earthquakes during 2010 and 2011 which had devastating effects on both the community and the city itself, Christchurch is re-emerging as a vibrant and ever-changing city. The earthquakes have provided an unprecedented opportunity to rethink, revitalise and renew the city of Christchurch. With the city in the midst of being reimagined, it makes it a particularly relevant and timely host destination for PAQS 2016. For more information or to register go to www.paqs2016.com.

THE BUILDING ECONOMIST - DECEMBER 2015 - 5


SNAPSHOT

IVA 2016

AIQS News THE AIQS ACADEMY The Academy can help fulfill your CPD requirements The AIQS Academy is an on demand, online training portal available for all professionals. This platform provides further CPD options to AIQS Members and can be accessed from the comfort of your own home or office. Each topic takes approximately two hours, and on successful completion of the assessment, two CPD points will be awarded.

INFINITE VALUE AWARDS 2016

The programs on offer have been individually reviewed and assessed to the highest

The AIQS would like to thank those who

has released a total of 31 topics that are now available, ranging from Budgetary

submitted nominations for the 2015 Infinite

Processes, Cost Planning, General Procurement Advice, Advise on Tender Processes,

Value Awards and to congratulate the winners

Resource Analysis and Claims and Dispute Resolution (Expert Witness).

standard of what is expected by the AIQS in continuing professional development, whilst keeping in mind the need for any program to be topical and easy to access. AIQS's Education Committee is regularly reviewing and updating the offerings of the AIQS Academy, to ensure a wide ranging and interesting set of topics on offer. During the course of 2016, the Academy will roll out up to 100 topics. Currently, AIQS

and finalists for their commitment to the industry and the institute. The awards night

AIQS Members will receive a discounted rate when ordering Academy topics,

was a great success and this key program will

bundles or the 'AIQS Certificate in Quantity Surveying' - 100 topics.

continue strong into 2016 and beyond. For more information or to purchase, go to www.aiqs.com.au. The Infinite Value Awards 2016 will take place at the newly renovated Four Points by Sheraton, Sydney, Darling Harbour on 27 October 2016. In the coming months, keep a look out on the Infinite Value Awards website for more information via www.infinitevalueawards.com.

THE AIQS JOBS BOARD Have you seen the AIQS Jobs Board recently? AIQS lists various career and employment opportunities via the Jobs Board under the 'Careers & Education' section. This contains job openings, internships and cadetships, scholarships and resources for organisations to advertise job vacancies. If you are a job seeker looking for new opportunities, go to the AIQS Jobs Board to view the full list of Job Vacancies. Opportunities exist for employers to advertise their job vacancies on the AIQS Jobs Board. If you are interested in posting a job or would like more information, email contact@aiqs.com.au.

THE BUILDING ECONOMIST - DECEMBER 2015 - 6


BE MAGAZINE

GUIDANCE NOTE – BASE COST ESTIMATION The Australian Government has made commitments to $50 billion for current and future investments of which $43.9 billion is in the Infrastructure Investment Program. This significant investment is a crucial part of the Government’s Economic Action Strategy to boost economic growth and prosperity, increase productivity and support thousands of new jobs. The Department of Infrastructure and Regional Development is in the process of developing a series of cost estimation Guidance Notes and has sought feedback on the draft Guidance Note 2 “Base Cost Estimation” from Members of the Australian Institute of Quantity Surveyors. The Guidance Note outlines the principles that must be followed by proponents in preparing cost estimates accompanying Project Proposal Reports, submitted in accordance with the Notes on Administration for

SUBMIT YOUR ARTICLE TO THE BE MAGAZINE

The Building Economist (BE) contains industryled features with a focus on the built environment and macro-economics. It contains factual interviews and industry data, recent trends and statistics, commentary from high-level industry representatives who have a wealth of experience in the field of quantity surveying, the built environment and associated industry sectors. If you see yourself as an 'expert in the field' or specialise in a particular area of the built environment that is under recognised, submitting your editorial contribution to the Building Economist can offer you the opportunity to get your name into an industry-leading industry publications and can help demonstrate your expert knowledge. Express your interest to ledmondson@aiqs.com.au today and get the recognition you deserve!

Land Transport Infrastructure Projects 2014-15 to 2018-19, which seek Australian Government funding for road and rail infrastructure projects. As the Cost Estimation Guidance Notes are progressively developed, the Department will be undertaking a process of consultation with the aim of seeking feedback on each component prior to final publication. Cost Estimation Guidance Notes are available for review and comment via the investment and infrastructure website. AIQS would like to encourage Institute Members to review the 'Cost Estimation Guidance' and provide comment where feedback is sought . AIQS's involvement in initiatives such as this will ensure the voice of the Quantity Surveyor is heard from the early stages of a project and highly valued moving forward into the future. AIQS encourages you to regularly check this webpage periodically for the opportunity to view and comment on the Guidance Notes as they are developed. For more information on how to view the various components, when they are available for review and comment, go to www.investment.infrastructure.gov.au.

2018 PAQS/ICEC – AIQS CONFERENCE On 14-16 November 2018, the AIQS will be host the PAQS/ICEC 2018 Conference at the International Convention Centre (ICC) in Darling Harbour, Sydney, NSW. Due to the re-development of the Conference & Exhibition Center in Darling Harbour, this venue is set to be an idyllic location to host this international conference, with up to 800 national and international delegates expected.

THE BUILDING ECONOMIST - DECEMBER 2015 - 7


COVER STORY

COVER STORY In order to highlight the 'The Year What Was' - the focus for this editions 'Cover Story' highlights important factors facing a Quantity Surveyor in todays industry. First of all, we take a look at how technology has shaped our past and is continuing the shape our present and future. With the growth of 'Building Information Technology' (BIM), understanding how technology is changing the world we live in is paramount to success in todays industry. With many Quantity Surveyors moving away from the safety of the built environment and applying their skills in other areas such as project management, in order to become better managers and great leaders, it is important to understand human behaviour and how this can improve our professional and even personal lives.

Authors The following authors have contributed to the development of this article.

Andrew Brady Andrew is the Managing Director at GRC Quantity Surveyors. He has extensive industry knowledge and specialist expertise in risk management, cost control, dispute resolution, contract advisory and value management services. He is the youngest person appointed to the Australian Institute of Quantity Surveyors (AIQS) National Board and was presented the Future Leader of the Year Award in the AIQS Infinite Value Awards 2013. Andrew is a member of national and international BIM committees and has experience as a Green Star accredited professional. GRC Quantity Surveyors is an independent cost management and quantity surveying practice driving value on infrastructure, resources and building projects across Australasia.

Alan Patching (FAIQS) Alan Patching is a retired Fellow of the AIQS who negotiated some of the largest property deals in the country’s history including the purchase of Chifley Tower from the Bond Corporation, several record breaking leases and the deal to bring Tiffany of New York to Australia. He was the CEO of the owning entity of the Sydney Olympic Stadium, and was the owner’s project director for the largest Olympic Stadium ever built. Alan also holds a Masters degree in Psychotherapy and Counselling and is a published academic researcher in that field. Alan is a professor of Project Management and Construction Management at Bond University on the Gold Coast. He was the winner of the AIQS President’s Medal in 2001.

THE BUILDING ECONOMIST - DECEMBER 2015 - 8


How technology is

shaping the past, present and future of the built environment Information technology is changing the way we live, from our professional to our personal lives. The use of Building Information Modeling (BIM) is spreading rapidly through the Global Design and Construction Industry. Quantity Surveyors and associated industry professionals such as Architects, Engineers and Contractor Firms, are being drawn to this method of working due to the practical efficiencies and integrated processes. BIM, or Building Information Modeling, describes the process of collaboratively designing and building, using one coherent system of computer models rather than as separate sets of drawings. Building information models can be used to support decisionmaking by individuals, businesses and government agencies who plan, design, construct, operate and maintain physical infrastructure developments.

Why use BIM and what are the benefits?

Currently, only a small portion of the built environment currently use BIM, with even fewer using it from the initial planning of the project through to completion. With many ‘cooks in the kitchen’ during construction projects, very few projects work with seamless collaboration or as a collective whole. It is true that BIM has the capacity to enable Quantity Surveyors to make well informed decisions, but often the quality of information can be lacking from the early stages and cannot be relied upon once it reaches the Quantity Surveyor. The GIGO principle remains true; if you put garbage in, you will only get garbage out. Andrew Brady, Managing Director, GRC Quantity Surveyors, sits on many national and international BIM committees and suggests that “huge opportunities exist for Quantity Surveyors to be a valuable consultant right through the project, from cradle to grave.

“If you put garbage in, you will only get garbage out” THE BUILDING ECONOMIST - DECEMBER 2015 - 9


“If it costs $100k to engage a Quantity Surveyor, cost savings could be in excess of $1m” Often, lack of awareness by clients of the benefits associated with engaging a Quantity Surveyor during the early stages of a project can be a missed opportunity. Quantity Surveyors should be more vocal in the industry about the value that can be added to construction projects and the costs savings that can be realised. Sometimes, clients are only looking to cut out the cost of engaging a Quantity Surveyor, but what some clients fail to realise is the cost vs benefit ratio. Clients must firstly consider, ‘if savings can be exponentially greater than the cost to engage a Quantity Surveyor, this then becomes an investment and not an expense.”

The challenges of BIM So what are the main challenges and opportunities facing a Quantity Surveyor when using Building Information Modeling, now and in the future? During construction projects, many different specialists with varying backgrounds and experiences are coming together in order to complete the task at hand. People aim to work together as a collective whole, with one end goal in mind, but there are often many ways to accomplish that goal. Just like cultural and language barriers exist in our society, this is often true when working on construction projects. Imagine a UN meeting without an interpreter; many different country representatives are coming together to accomplish a goal. They all have the required skills to complete the task at hand, but

most individuals do not speak the same language or have an understanding of the cultural differences at play. It is true that some may understand another countries language or even have some knowledge of their cultural systems, but this is interpreted and may not be an accurate representation of what a spoken word or gesture may in fact mean in the intended context. “During construction projects, a common language is required to ensure that stakeholder input can be interpreted correctly, even if this does not mean that all factors can possibly be known or understood about their background, experience or social constructs. Building information modelling can help ‘breakdown’ the language barriers between parties and start forging a common understanding between project teams. It can help establish ‘one source of truth’, build lines of trust, outline an expected standard and method of consistency, create synergies between parties that may have been otherwise miss-interpreted and help develop cohesive and cross functional teams” notes Andrew Brady. Technology has come a long way in recent years, we have entered an ‘Information Age’ that has affected the workforce in several ways. Technology is helping to drive efficiency and enable individuals to do their jobs faster, with greater ease, collaboration and integration that would not be possible without it. But with the explosion of the technology and the systems now available, comes the need for education on how to use these systems. It is useless having all the latest and greatest tools in your toolbox at your disposal, but to always revert back to the tool you know best and are most familiar with.

“Building information modelling can help ‘break-down’ the language barrier between parties and start forging a common understanding between project teams”

THE BUILDING ECONOMIST - DECEMBER 2015 - 10


“Key opportunities are being lost that could be leveraged via technology, that further education could help rectify” Andrew Brady suggests that another challenge faced by Quantity Surveyors using building information modelling systems, is the inconsistent way design consultants create their models and the quality of the information they contain. “The difference between a good and a bad model could be as simple as a couple of clicks of a mouse button. If only a few boxes are not ticked within the system, a significant amount of intelligent data is lost and cannot be shared by the project team, that would have added significant value to project outcomes. Key opportunities are being lost that could be leveraged via technology, that further education could help rectify.” “But learning technology alone will not solve all the issues facing todays industry. Knowing how to use a program does not necessarily translate to a deep understanding of the methods behind the process. Even today, I encourage all those involved in the built environment to read the Australian Cost Management Manual; as teachings from this publication can help give all project stakeholders a holistic understanding of the entire project and not only what they are able to see.” The classic ‘Iceberg Principle’ explains that in many (if not most) cases; observations only account for a very small amount (the 'tip') of information that is available or visible about a situation or phenomenon, whereas the 'real' information or bulk of data is either unavailable or hidden. The principle gets its name from the fact that only about 1/10th of an iceberg's mass is seen outside while about 9/10th of it is unseen, deep down in water. Some of the biggest and most ambitious projects and initiatives have fallen down to this concept, the most obviously and literal being the infamous first voyage of the ‘Titanic’.

Andrew explains “due to a lack of understanding by industry as to how the techniques utilised by Quantity Surveyors can improve project outcomes, the value of engaging a Quantity Surveyor is often being overlooked in the construction industry. I encourage all Quantity Surveyors to get out there and educate the industry on the associated benefits of engaging a Quantity Surveyor up-front and the many opportunities that are currently being missed in today’s marketplace.” “AIQS’s involvement in developing a BIM Standard is critical; so that design consultants and contractors understand what information is required, when it is required and the information that needs to be made available for project teams. I see BIM as a tool and an opportunity to re-establish Quantity Surveying as a profession and being the consultant that uses a full range of services to drive cost effective and successful projects.” Andrew suggests that the development of a National Standard to support such as goal is difficult to reach as there are many different groups developing their own guidelines and standards. “Whether you have heard of BIM, are using BIM day-today for some or all of your project needs, the evolution of using BIM to its full capacity is still years into the future”. Andrew is currently part of a committee looking at the development of an International Quantity Surveying BIM Standard, but recognises the challenges posed by attempting such an ambitious task. “Globally, the challenges of developing an International Standard remains one of the more complex issues to solve. Even if Standards using BIM technology could be developed on a global scale, the larger question remains how aligning cultural practices and deeply ingrained moral fibres into one succinct ‘best practice document’ could be accomplished, and if so, how can this best be achieved?"

“Whether you have heard of BIM, are using BIM day-to-day for some or all of your project needs, the evolution of using BIM to its full capacity is still years into the future”

THE BUILDING ECONOMIST - DECEMBER 2015 - 11


AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS

“The Academy is an online training portal that can be accessed from your computer or laptop...from any location you choose!”

The AIQS Academy The AIQS Academy is an on demand, online training portal available for all professionals. This platform will provide further CPD options to AIQS Members or Non-Members and can be accessed from your home, office or a location of your choice. Each topic takes approximately two hours, but completion can be at your own pace and work around your busy schedule. During the course of 2016, the AIQS Academy will roll out up to 100 topics. The topics on offer have been individually reviewed and assessed to the highest standard of what is expected by the AIQS in continuing professional development. The AIQS Education Committee will regularly review and update the offerings of the AIQS Academy, to ensure a wide ranging and interesting set of topics. The Academy can be used as your organisational training and can improve your level of competency against key issues facing the industry of today and the growing topics of high importance.

Meet AIQS’s Membership Entry Requirements

Continuing Professional Development

The Academy can help you identify knowledge gaps, learn new skills, upgrade existing skills or up-skill project teams. The Academy can be used as a pathway to AIQS Membership and can help ensure you have the necessary skills required to meet the Institute’s academic entry requirements.

The Academy can provide continuing professional development (CPD) opportunities for Members and Non-Members of AIQS. CPD can be used to measure your level of competency in today’s competitive environment and ensure your skills are current.

Applicants seeking Institute Membership without a fully qualifying degree (Pathway 2), will be able to meet the academic entry requirements by completing the 100 Academy topics available. Participants who complete 100 topics, will receive the AIQS Certificate in Quantity Surveying and a Professional Certificate of recognition.

This platform will help provide further CPD opportunities to AIQS Members, in order to fulfill their CPD requirements for continued membership. Each course is worth 2 CPD Points and on successful completion of the assessment, two CPD points will be awarded.

How do I purchase Academy topics?

Contact AIQS Level 3 70 Pitt St Sydney NSW 2000 +61 2 8234 4000 education@aiqs.com.au

Go to www.aiqs.com.au and click on the Academy link. You must first sign-in or create a login before you can view or purchase the topics available.

How much does a topic cost and are there discounts available for AIQS Members?

Members = $65 per topic and Non-Members = $75. By purchasing topic bundles (5-10) you can receive up to 20% discount. Pre-purchase all 100 Topics and save $1,500. (Members = $5,000, Non-Members = $6,000).

Is the offering topical, relevant and of high quality?

The AIQS Education Committee is regularly reviewing and updating the offering, to ensure a wide ranging and interesting set of topics on offer. Topics have been individually reviewed and assessed to the highest standards.

What topics are currently available?

Currently there are 31 topics available. Topic bundles currently available include Budgetary Processes, Cost Planning, Cost Estimating, General Procurement Advice, Advise on Tender Processes, Resource Analysis, Construction Change Management and Claims and Dispute Resolution.

When will all the 100 topics be available? Most of the 100 topics will be available by mid 2016, with the remainder to follow in the early 2016/2017 Financial Year.

Is the Academy available on mobile devices? The Academy is available on mobile devices, however the current platform is not mobile responsive. You can currently view the Academy on your smart phone or tablet such as iPad, iPhone and Google Android devices, but the Academy website will be upgraded in coming months, in order to further improve the viewer experience on mobile devices.


Understanding human behavi o ur HELPING YOU AND YOUR FUTURE PROJECTS

Although the rapid growth of building Information modelling has been turning heads in industry circles, it is important to consider that we cannot solely rely on technology to do our jobs. The processes involved in the built environment are not technically driven processes and technology does not have all the answers. Managing stakeholders and leading teams requires an understanding of human behaviour and complex human problems that cannot be solved in a liner fashion. Finding creative solutions to complex human problems are often the most difficult issues to solve and cannot be done by technology alone. Alan Patching, an experienced Quantity Surveyor, AIQS Fellow, Professor at Bond University and a UK Registered Psychotherapist, explains that “human behaviour develops through a series of stages. We begin with SUGGESTIONS from parents from the time we are born, and by the time we are six or seven, when critical consciousness begins to develop, we have formed much of our BELIEFS system.” “From then on, whenever life exposes us to experience that ‘fits’ our belief system, we experience ‘good’ FEELINGS, whereas exposure to circumstances contradicting what we believe should or should not be the case, gives rise to ‘negative’ Feelings. From those FEELINGS we develop an ATTITUDE to the circumstances to which we are exposed and that Attitude triggers our BEHAVIOUR.” “Management and leadership are about affecting behaviour in a manner which gets the best from the people we work with. Management tends to act upon the Attitude and Behaviour components of the

“Management and leadership are about affecting behaviour in a manner which gets the best from the people we work with” THE BUILDING ECONOMIST - DECEMBER 2015 - 13


improved ways of working often comes down to organisational culture and the beliefs of an individual, and how open they may be to accepting new ideas or better ways of accomplishing a task. It may be down to whether a highly experienced manager may accept the opinion of a younger generation team member.

aforementioned model, while Leadership is more likely to take a long term approach and address the Suggestions and Beliefs areas. Management secures CHANGE (relatively quickly), which is an adjustment to what we do. Great LEADERSHIP gains TRANSFORMATION, which is an adjustment to who we are – and that usually takes time, because it is about human development.” Emotional Intelligence (EI) is known as the capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically. Alan Patching suggests that “Emotional Intelligence (EI) or Emotional Quotient (EQ) is of ultimate importance, and people and consultancies who do not appreciate that will be left behind in the decades ahead.” “Daniel Goleman did not invent Emotional Intelligence or coin the term, but he did ‘put it on the map’, as it were. Daniel is quite clear in his position that IQ gets a person a

job and EQ determines how far the person gets in the job. There is mounting evidence that consultancies with high EQ strongly outperform the market in a wide range of fields. Equally, individuals with high IQ outperform those below the ‘tipping point’ by an impressive factor; we can think of the ‘tipping point’ as the point at which a series of small changes or incidents becomes significant enough to cause a larger, more important change.” “The Quantity Surveying practice that wants to really gain ground and grow, really needs to get beyond logic and analysis and all the things that Quantity Surveyors are good at; and move towards greater understanding of the things that have no basis in logic or analysis but really can make them better” suggests Alan Patching.

Social and cultural norms Not only in Quantity Surveying, but in many industries, receptiveness to new and

In many Asian cultures, a strict hierarchical structure exists within a working environment. Culture dictates that you are obliged to be deferential toward your elders and superiors in a way that would be unimaginable in many western cultures. The word of a younger person may not be listened to over the word of an elder, regardless of whether the decision being made is for the improvement or to the detriment of the task at hand. This may be generally accepted as a social norm and many industries may not identify this as a risk that requires mitigation, but in industries such as the aviation, it is essential. The failure to recognise cultural norms that could be an enabler to bad decision making, could be catastrophic. The National Transport Safety Board (NTSB), have officially ruled highly established hierarchal structures as a contributing factor towards several airline disasters. Airlines faced with this problem, have been forced to implement day-to-day procedures to mitigate these risks; that offers the younger generation a voice regardless of rank or status. These programs have proven successful in safeguarding against further airlines disasters, in spite of ongoing highly structured and deeply engrained social norms that continue to dominate every-day society.

“The failure to recognise cultural norms that could be an enabler to bad decision making, could be catastrophic” THE BUILDING ECONOMIST - DECEMBER 2015 - 14


Past, present and future Since our early beginnings, drawings have been used to aid with storytelling and to visually present concepts and ideas that can be better understood rather than using words; where meaning can often be lost through incorrect interpretation. In terms of a Quantity Surveyor, technical drawings are often used to visually convey a message that is not open to interpretation and is exact in its nature. Drawings are used as a common form of language, whether it be paper based or by using modern day computers.

With children now growing up using computers as a part of every-day life, from when they are learning to talk or even walk, the gap between basic computer skills that was once enough to ‘get by’ and advanced skills is widening day-by-day. Many educational institutions are now teaching building information systems as a standard course module, resulting in many recent graduates having an exceptionally high level of knowledge using these systems. The age old discussion of education vs experience comes into play and is evident in today’s built environment. At what point is it not worth learning new systems for the better of the project? Some highly

experienced people nearing the end of their careers, may believe that is it ‘not worth investing their time and energy required to learn these new systems’ and this may suit their circumstances. But this does not suggest that the industry will also move towards this model, now and in the future. If anything can be used as a way to predict future trends, history has shown us through the rapid growth and adoption of technology, even when change is often resisted, in the long term people will eventually embrace change if it improves our lives and helps us evolve in some way, shape or form, whether it takes months, years or generations.

"In the long term people will eventually embrace change if it improves our lives and helps us evolve in some way, shape or form, whether it takes months, years or generations" THE BUILDING ECONOMIST - DECEMBER 2015 - 15


EDUCATION & TRAINING

HELPING YOU AND YOUR FUTURE PROJECTS With many firms embracing information management systems and realising the associated benefits the integration brings, a higher than average level of computer skills is often being requested by industry.

With the evolution of Building Information Management Systems such as BIM; even the most experienced practitioners are finding the need to up-skill their computer literacy. The Information Age has influenced the workforce in many ways. Workers are being forced to compete in a global job market where the knowledge and speed of using computers can drive efficiency and enable individuals to do their jobs faster and with greater ease.

The AIQS Academy can assist Quantity Surveyors and those in associated industries, in developing the fundamental skills required to be successful in todays market. The ‘Basic Essential Bundle’ can help even the most experienced practitioner up-skill their fundamental computer skills, to be more competitive in today's information age. This bundle consists of 10 individual CPD topics and is worth 20 CPD points.

THE BUILDING ECONOMIST - DECEMBER 2015 - 16

Topics available in the ‘Basic Essential Bundle’ include: • Basic Measurement Skills • Communication Skills • Personal & Interpersonal Skills • Business & Management Skills • Computers & IT Essentials • Construction Law & Regulation • Diversity in the Workplace • Safety in the Workplace • Professional Practice • Construction Technology For the full list of Academy topics, go to the Academy website via www.aiqs.com.au.


navigate • select • succeed Conduit Recruitment: Conduit Recruitment

TheThe Preferred Choice Preferred Choice

Conduit Recruitment are the preferred recruitment agency for

Conduit Recruitment are the for the the Australian Institute of preferred Quantityrecruitment Surveyors.agency In partnership Australian of Quantity Surveyors. In partnership with with themInstitute we provide: them we provide:

• Recruitment services to builders, consultants and developers • Recruitment services to builders, consultants and developers – see our website for our sectors and strengths – see our website for our sectors and strengths • Advice on recruitment matters and HR solutions within the • Advice on recruitment matters and HR solutions within the construction industry construction industry • Salary surveys • Salary surveys • Sponsorship of various events including AIQS Annual Dinners, AIQS CPD Events, Excellence in • Sponsorship of various events including AIQS Annual Dinners, Construction Awards, PIF Yacht Regattas, Young Engineers Awards and many others AIQSCPD Events, Excellence in Construction Awards, PIF Yacht Regattas, • Seminars on relevent industry issues such as OH&S, Staff Retention, Recruitment Strategies, Emerging Young Engineers Awards and many others Trends, Economic Forecasts, Workplace Relations, Staff Contract Law, etc • Seminars on relevant industry issues such as OH&S, Staff Retention, Recruitment Strategies, Emerging Trends, Economic Forecasts, Please direct all queries to Greg Ford at Workplace Relations, Staff Contract Law, etc

gregf@conduitgroup.com.au or call him on 02 9929 7224. Please direct all queries to Joe Brownell at joeb@conduitgroup.com.au or call him on 02 8277 5200. For all our current vacancies see our website www.conduitgroup.com.au For all our current vacancies see our website www.conduitgroup.com.au

Call: 8277 Call: 0202 9929 7224 5200

www.conduitgroup.com.au recruitment@conduitgroup.com.au


Gala Dinner Retrospective Friday 23rd October 2015


The Infinite Value Awards

Infinite | 'inf nit |

Value | 'valyo천 |

adjective

noun

Limitless or endless in space, extent, or size; impossible to measure or calculate.

The regard that something is held to deserve; the importance or preciousness of something.

The AIQS is proud to recognise the Infinitely Valuable in 2015

Through the Infinite Value Awards (IVA), AIQS together with our supporting partners aims to recognise and celebrate the successes of the Australian and global construction industry.

On Friday 23rd October, the 2015 Infinite Value Awards Gala Dinner and Awards Presentation evening was held in the Cargo Hall, South Wharf in Victoria's capital city, Melbourne.

For the fourth successful year running, this annual awards program has discovered, rewarded and promoted a variety of national and international professionals and projects.

During the IVA 2015, the standards of the nominations received was exceptionally high. AIQS received nominations from a number of truly remarkable projects, with from within Australian and Internationally.

AIQS would like to congratulate all those who took part in the awards, who took the time to submit for this important program and recognise the outstanding achievements of the finalists who achieved the highest industry acclaim and took out top honours by winning an award.

Building on the success of the IVA 2015, AIQS would like to encourage the same level of success in future years and encourages you to submit your nomination for the IVA 2016.

THE BUILDING ECONOMIST - DECEMBER 2015 - 19


LendLease Project of the Year Port Arthur Penitentiary Precinct The Port Arthur Historic Site is Australia's most intact 19th century convict settlement. Located in south eastern Tasmania, the Penitentiary is the largest structure on the site and was originally constructed as a granary mill between 1842 and 1845. During the 1980s a conservation program was established with a view to stabilising the structure. This structure, although progressive for its time, was recognised by 2010 as being inadequate in its structural support. Reports identified that the extant walls were at risk of collapse and required further stabilisation.

Project Objectives • To achieve overall structural sufficiency with minimal intervention to heritage fabric, compliant to Australian Building Code and Australian Standards • To enable public access providing enhanced ability to understand the site, through exposure of fabric and interpretation • To provide storm surge and sea wave impact mitigation measures

Design Innovation Extensive surveys found the following issues: •

Limited foundation and ground conditions with little bearing capacity

Extremely low strength brickwork masonry walls, typically exhibiting less than one-third required design capacity

Extensive voids within walls, likely to be caused by water erosion of lime mortar and low temperature firing of clay bricks

THE BUILDING ECONOMIST - DECEMBER 2015 - 20


The design solution demonstrated critical thinking in articulating an innovative response to the specific historic context. To maintain heritage values, engineering requirements came second to various archaeological, historical and architectural goals.

" The simple solution

(conceptually) was to build a concrete or structural steel frame, that acted as a structural armature to the masonry walls. A structural ‘cage’ in reality, would have completely overwhelmed the structure, both internally and externally

"

Several options delivered the structural response, whilst totally obscuring the form and materiality of the existing building. It was therefore essential to develop a set of clear design objectives that could guide the project team, in pursuit of an appropriately sensitive design solution. Three aspects are highlighted as demonstrating innovation: • Response to a significant threat, which found design capacity to be 30% of requirement • A structural solution which combined five essentially simple ingredients into a cohesive, unobtrusive whole • Reasoned response to a latent condition, which maintained the original design intent

As far as possible, engineering solutions had to be invisible. The design concept is a balancing act between the new structure and invisibility. A set of structural elements or tools was conceived - each to be tailored to the location and fragile nature of the building. Each tool was developed individually for customised application. These tools were then used in multiple forms and variance to test for a solution. The concept was that; with appropriate use of modeling, a combination of elements (tools) could be found that would provide an acceptable level of structural sufficiency and adherence to the design parameters, particularly the limitation on external intrusion of new structure on existing conditions. When combined, these structural elements acting together under load conditions, provided the structural solution to capacity and restraint, whilst providing appropriate marriage to the design parameters.

Delivery Innovation The unique scope of work drew a great level of interest, engagement and ownership to the process and product by each of the project team members; from the consultant team to the on-site construction team. A strong relationship was fostered, allowing a reliable regime of process and trust to drive a collaborative approach within the group to achieve a common goal.

1. Programming A higher than expected level of planning and programming throughout the duration of the project was required due to the latent conditions found in the ground and in the existing wall structure. Procurement of specialist resources both in personnel (travelling from the UK and various locations within Australia) and materials (sourced predominantly from the United Kingdom, USA and South Korea) and day to day monitoring was required, in order to maintain continuity on site and the project budget. To maintain the focus on the intended handover date and taking into account the knowledge of progressive delays (latent site conditions), the Project/ Construction Manager and Site Manager conducted weekly high level program analysis with the specialist sub-contractors. The collaborative and non-adversarial forum allowed analysis to be provided in the management and rescheduling of non-specialist trades and materials.

2. The Application of New Technology BIM 360 has been used extensively throughout this project; to create progressive dilapidation records and has been embraced by each of the sub-trades on site. As the project is the largest heritage scope of works to have been undertaken within the Port Arthur Penitentiary and Bakehouse ruin, PAHSMA welcomed the automatic and progressive stream of photo progress dilapidation, progress and status updates to collate into their archaeological files. 

THE BUILDING ECONOMIST - DECEMBER 2015 - 21


Summary The new structure helps to reveal the qualities of the place including historical, architectural, cultural and social significance. It is consistent with the principal that the design demonstrates a clear understanding of the building’s design history and early use. A contemporary design palette allows visitors to distinguish significant fabric from that of the structural design. This simplistic approach highlights small but precious remnants of original glazing, plaster finishes and the building simplistic but comprehensive ventilation system.

The structural design solution provides a canvas for a future program of interpretation works which will further communicate the story of the buildings design and operation and be enhanced by personal stories of convicts and civil officers who lived and worked within the building. Part of this interpretation program will also communicate the story of the buildings conservation and interpretation. Models, samples, video footage and photographic records will be collated into a permanent exhibition showcasing the structural feats which may not be apparent to the visiting public.

THE BUILDING ECONOMIST - DECEMBER 2015 - 22

" Conservation is based on

a respect for the existing fabric, use, associations and meanings. It requires a cautious approach of changing as much as necessary, but as little as possible

"


LendLease Professional of the Year Lucy Eng Through her dedication and involvement within the construction industry, Lucy Eng won the 'LendLease Professional of the Year' Award and the ’Woman In Construction’ Category at the 2015 Australian Institute of Quantity Surveyors Infinite Value Awards. Christchurch based Lucy Eng is a rising star in the New Zealand construction industry, particularly in the South Island and Canterbury Regions. Lucy has with passion, promoted the advancement of women within the construction Industry and encourages women to take on key leadership roles throughout the industry. Lucy started her career as a Quantity Surveyor in 2008, a time when there were very few women in the industry within New Zealand. At the time of her graduation with her Quantity Surveying and Construction Management qualifications, the construction market was at a low ebb. With her active involvement in the local New Zealand Institute of Quantity Surveyors branch, she was soon offered a job by a wellknown local interior fit out firm in Christchurch. She worked hard as a Quantity Surveyor and Assistant Project Manager reporting to the Director and Senior Project Manager of the company. In 2010, Lucy saw the opportunity to expand her horizons by joining the Project and Cost Management Team in the Christchurch office of Beca Limited (Beca). Beca is a leading New Zealand employee-owned professional engineering services and construction consultancy firm. Lucy was employed as a Cost Manager, and at that time there was only a small team of only two Quantity Surveyors employed in the Beca Christchurch office. Lucy was given a great opportunity to be involved in providing cost management services including early stage cost estimates,

THE BUILDING ECONOMIST - DECEMBER 2015 - 23


feasibility studies, payment processing as well as on-site job process tracking and contract checks, construction monitoring and final account for a large portfolio. Since the earthquakes in 2010/2011 opportunities have increased dramatically, providing Lucy with a wide range of professional development opportunities. She has undertaken costing and project control work for Beca clients, that includes the Christchurch City Council, Wellington City Council, Timaru District Council, Housing New Zealand, Goodman Fielder, Weston Milling, Medical Assurance Society, along with many other private commercial clients. Lucy has been actively involved in helping these Clients deliver their capital projects in Infrastructure, Industrial, Commercial and Residential buildings. Following the earthquake in February 2011, Lucy has been actively involved with scoping earthquake damage and preparing costs for repair works of a large social housing Client. She worked with a team of architects, engineers, quantity surveyors and project managers working long hours, seven days a week to deliver a quick response and meet the requirements of the Client. Whilst dealing with her own personal matters caused by the earthquakes, Lucy showed resilience and tenacity to stick with the program and manage the diverse range of issues that occurred in what was a dynamic and constantly changing program. This project was an eye opener for Lucy, not just the working hours she put in, but also the experience of seeing families and individuals living in badly earthquake damaged homes. While frequently inspecting these houses

during the scoping stage, she became close to some of these families in the worst hit suburbs. She stood out from the team not only because she was a woman in a high-vis vest, but because she took ownership of what she was doing and in helping to achieve the best possible results for these families. Even now, families will still stop to have a chat with her when they see her around town and remain thankful for the support she has given them during the crisis. After completing the social housing project, Lucy joined the Beca Water and Environmental team, to provide cost management support at the Christchurch City Council Wastewater Treatment Plant. This was a new challenge role in her career and one that she strongly embraced. Initially it was a 3-month role, providing cost advice and estimates for earthquake assessment reports delivered to the Council Insurer. The project director of the plant saw her hard work and dedication; and as a result, Lucy was promoted to provide continuous cost and project management at the plant, for both earthquake repairs and capital investment projects. This further developed Lucy’s increasingly positive reputation within the local Council, resulting in many further opportunities working on other Council Capital projects. During her time working at Beca, Lucy has been involved in a variety of projects from earthquake repairs to capital new build schemes for industrial facilities, commercial buildings, public buildings and infrastructure upgrades. While given project management roles on some projects, Lucy saw an opportunity in Project Management and actively sought ways to develop her career towards the Project Management discipline.

THE BUILDING ECONOMIST - DECEMBER 2015 - 24

She enrolled in a Project Management course while working full-time, having to carefully manage her time and commitments, both in and out of the work environment to achieve her goals. Lucy achieved this within one year; from there on she was actively involved in running projects while supporting the cost management team in her office. Outside of work, Lucy is a branch board member in the New Zealand Institute of Quantity Surveyors Canterbury branch. She has been on the branch board since 2008 with active involvement in organising CPD events, conferences and social nights for local Quantity Surveyors in Canterbury. This has given her the opportunity to meet other Quantity Surveyor professionals, not just in Canterbury, but around New Zealand. During her earlier involvement in the institute, she was one of the five female Quantity Surveyors in Canterbury. Lucy recognised the need to encourage more women to become Quantity Surveyors. She regularly encourages female students to not only take on the role of Quantity Surveying through their education, but through many other construction studies such as Engineering or Construction Management. Over the years she has seen a significant change, with more local and overseas female Quantity Surveyors attending local institute functions. During the rebuild of the City following the earthquakes, the number of females in Quantity Surveying increased significantly. Lucy was also involved in the Pacific Association of Quantity Surveyors (PAQS) -Young Quantity Surveyor Group. There were monthly catch up


sessions with other young Quantity Surveyors in Asia, Australia, Canada and South Africa. Lucy is currently part of the organising committee for the PAQS Conference in Christchurch which will be held in 2016. She is also an active member of the National Association of Woman in Construction in Christchurch. This has given her a chance to network with other professional women and aspire to the many role models in the construction industry.

With Lucy’s friendly and confident approach to working in a male oriented industry, Lucy has made a name for herself and is well known and respected by her work colleagues, clients and contractors. Lucy is certain to become a future female leader in the construction industry, giving her the opportunity to influence other young women and close the gender gap. She is actively involved at tertiary institutes and local functions, that encourage greater visibility to female involvement in the construction industry.

THE BUILDING ECONOMIST - DECEMBER 2015 - 25


2015 Awards Presentation Finalists and Winners Coverforce Architectural Excellence Award This award celebrates excellence in the field of Architecture. This project-based award is aimed at Architectural projects that are pioneers in terms of design as well as function, and are influencing the very face of the Australian built environment.

Finalists Adelaide Oval Redevelopment Project Nominated by Cox Architecture, South Australia Array Apartments Nominated by Mirvac, Victoria Kiaora Place Nominated by Ganellen, New South Wales

Engineering Excellence Award This award celebrates excellence in the field of Engineering and represents the very best in the industry. It is a project-based award and includes infrastructure projects, mining projects or buildings. Projects must demonstrate the positive impact they have had on the community and the resulting social benefits of the project as a whole.

Finalists Port Arthur Penitentiary Precint Conservation Project Nominated by: Exsto Management, Tasmania Perth Rectangular Stadium Stage 1 Nominated by Ralph Beattie Bosworth, Western Australia Airport Drive & Realignment of Steele Creek North Nominated by North Projects, Victoria

Winner

Winner

Adelaide Oval Redevelopment Project

Port Arthur Penitentiary Precint Conservation Project Nominated by: Exsto Management, Tasmania

The Adelaide Oval Redevelopment transformed the existing oval facility into a world class multi-purpose sport and entertainment facility. The ground’s capacity was increased from 34,000 to 53,000 and the project was completed under the $535M budget. The multi-purpose complex amenities exceeded stadium requirement by 20% and delivered a functional multi-purpose sports venue and entertainment centre in the heart of the Adelaide CBD. The Adelaide Oval Redevelopment has been recognised as one of the world’s ‘best value’ built stadiums.

The Port Arthur Historic Site is Australia's most intact 19th century convict settlement. Located in south eastern Tasmania, the Penitentiary is the largest structure on the site. In 2010, it was at risk of collapse due to low strength brickwork, limited foundations and ongoing water erosion.

Nominated by: Cox Architecture, South Australia

The return of football and concerts to the CBD has delivered economic growth and has boosted moral and consumer confidence in the nearby North Adelaide and CBD.

THE BUILDING ECONOMIST - DECEMBER 2015 - 26

A solution that considered the sensitive nature of the structure was developed; to build a concrete or structural steel frame that acted as a structural armature to the masonry walls, as a structural ‘cage’ in reality would have completely overwhelmed the structure. The new structure helped to keep the historical qualities in-tact, by changing as much as necessary, but as little as possible.


Conduit Recruitment Future Leader Award

Government Project Award

This award is designed to recognise, encourage and celebrate the up and coming “movers and shakers� within the construction industry.

This award recognises the value and excellence of a local, state or federal government department or authority in its association with the property and construction industries.

Finalists

Finalists

Sushma Suresh Nominated by Sweett Group, Victoria

The Ulumbarra Theatre Nominated by Prowse Quantity Surveyors, Victoria

Matthew Ferrantino Nominated by Donald Cant Watts, Victoria

Winyu House, Gungahlin Office Building Nominated by Lend Lease, Australian Capital Territory

Thomas Chan Nominated by Aquenta Consulting, Victoria

Fiona Stanley Hospital Nominated by MBMpl, New South Wales WT Partnership RBB, Western Australia

Manoj Herath Nominated by Yohan Pasqual, Dubai

Winner

Winner

Sushma Suresh Nominated by: Sweett Group, Victoria

The Ulumbarra Theatre Nominated by: Prowse Quantity Surveyors, Victoria

Sushma Suresh won the award for her continued excellence in cost management over a range of large and complex projects in healthcare, tertiary education, aged care and local government.

The Ulumbarra Theatre represents a new level of building transformation; turning the historic prison into a state-of-the art Performing Arts Centre for this growing regional area. The complex includes a 1,000 seat theatre and a range of complementary areas to maximise the use of the venue, ensuring optimal value for this joint local, state and federal government funded venture.

Since working with Davis Langdon, India and migrating to Australia, Sushma displayed an in-depth level of knowledge and experience in cost consultancy. Sushma quickly demonstrated her skill and experience in cost management and in the past six years, has grown through the ranks of the firm, to now hold the position of Senior Consultant. During this time, Sushma has successfully worked as the lead project cost manager on a range of large and complex projects.

This ambitious and complex undertaking made every attempt to retain as much of the historical structure and features of the site, in an attempt to retain its historic significance and to reduce its environmental impact. The project was delivered on time and within 5% of its original budget, through ensuring efficiencies in all areas, including value and cost management.

THE BUILDING ECONOMIST - DECEMBER 2015 - 27


Innovation Project Award

Regional Project Award

This award aims to honour a project that has pushed the boundaries in terms of design, development and delivery and . for projects that have adopted a more effective and innovative process in their execution and general approach, resulting in an industry leading finished product.

This award celebrates the achievements of our peers outside of major cities and also off shore in the wider construction community.

Finalists

Port Augusta Central Oval Community Sporting Complex Nominated by Donald Cant Watts Corke, South Australia

Dr Chau Chak Wing Building University of Technology Sydney Nominated by Lend Lease, New South Wales Port Arthur Penitentiary Precint Conservation Nominated by Exsto Management, Tasmania

Finalists

Toowoomba Regional Arts &Community Centre (Armitage Centre) Nominated by Donald Cant Watts Corke, Queensland WANARN CLINIC Nominated by QS Services, Northern Territory

Winner

Winner

Dr Chau Chak Wing Building University of Technology Sydney Nominated by: Lend Lease, New South Wales

Port Augusta Central Oval Community Sporting Complex Nominated by: Donald Cant Watts Corke, South Australia

The Dr Chau Chak Wing Building is a 14 level structure at the heart of the UTS development Masterplan, along with the nearby Faculty of Engineering and Information Technology. The building is the first Australian commission for Gehry Partners of California and provides teaching, learning, research and office space for up to 1,600 students and staff.

The $21 Million Port Augusta Central Oval Community Sporting Complex Project, was a collaboration of different levels of government working together; to provide Port Augusta and the surrounding regions of South Australia with outstanding facilities for sporting and community events and fund raising opportunities for the tenant clubs and associations.

Inspired by a treehouse, the iconic design was immensely challenging to build, demanding bespoke solutions and extensive 3D modeling to guide the planning, on-site activities and off-site manufacture of key elements. The result was an innovative, collaborative and sustainable space resulting in a lasting architectural legacy.

The project brought economic benefits to the local community with regional and state events being held at the facility. Twentyone direct and twenty-five indirect jobs were created as a result of the development, helping to stimulate the local economy. A further 65 jobs were created during the projects construction and local contractors were allocated $7 Million of the budget.

THE BUILDING ECONOMIST - DECEMBER 2015 - 28


AIQS Lifetime Contribution Award

AIQS Quantity Surveying Advocacy Award

This award honours those who have made an outstanding contribution to the industry and have dedicated a significant amount of time to champion the profession both inside and outside of the work environment.

This award is designed to thank those in the industry that actively engage with and endorse the role of the Quantity Surveyor. It provides an opportunity for QS firms to put forward their best clients in gratitude of their continued support.

Finalists

Finalists

Charles Wright Nominated by QS Services, Northern Territory

Rebecca Krumins Nominated by NSW Land & Housing Corporation, New South Wales Paul Janes Nominated by MBMpl, New South Wales

Winner

Winner

Charles Wright Nominated by: QS Services, Northern Territory

Rebecca Krumins Nominated by: NSW Land &  Housing Corporation, New South Wales

In the Gibson Desert, 1000km west of Alice Springs, Wanarn Clinic serves a community among the remotest in Australia. Ngaanyatjarra Health Service, a community organisation with an Indigenous Board; faced programmatic constraints and a modest budget when building the facility. Consideration of the local people, land and culture was paramount to the project’s success. The project achieved significant cost savings through detailed consultation, enabling the inclusion of a two chair dialysis unit; to help address the epidemic that is separating people from country. To counter the utilitarian built environment, the art screens in particular have imbued a sense of pride and ownership within the community and pay respect to elders, artists and culture, enriching the community.

Rebecca Krumins won the Advocacy Award and is passionate about promulgating an awareness of the many other facets of Quantity Surveying that can be utilised by industry. Rebecca has for the past 3o years, been 'spreading the word' and educating the industry of the value of Quantity Surveying. Rebecca advocates the various skills a Quantity Surveyor can offer including contract development, specification development, project/program management, performance management, systems development, cost benefits analysis, commercial advice, business case development, organisational development and change management, applicable in both private and public sectors.

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MBM Research and Teaching Award This award celebrates those who have dedicated their careers to educating and increasing the knowledge and skill–base of the profession. It aims to recognise the contribution that an individual has made to the industry through research and education. It is about recognising those who have enriched the people and practices that make up the construction profession.

Finalist

WoodSolutions Sustainable Project Award This award aims to reward and recognise a project that has made significant impact in the environmental space and the principals of sustainability have been at the forefront of the design and execution of the project.

Finalist Airport Drive & Realignment of Steele Creek North Nominated by North Projects, Victoria

Dr Paul Luciani Nominated by MBMpl, New South Wales

Winner

Winner

Dr Paul Lucian Nominated by: MBMpl, New South Wales

Airport Drive & Realignment of Steele Creek North Nominated by: North Projects, Victoria

Paul is currently lecturing at 3 major universities at Masters level and has developed Masters level subjects for two major Australian universities. He has been cited in numerous global journals, with his research contributing to the body of knowledge in many related disciplines.

Built between Sharps Road and Mercer Drive, the new 3.3 kilometre extension of Airport Drive is a new direct route from the west to Melbourne Airport, which aims to benefit the public both now and in the future.

He is the ASIA PACIFIC Director of Real Estate, part of the Global procurement function for Ernst & Young and was instrumental in developing both the Global RE and the Global procurement function. Paul has over 25 years to applied research in the fields of Facility Management, Corporate Real Estate, Procurement and is currently managing over $100M of capex spend across 26 countries.

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The environmental enhancements to nearby Steele Creek north were one of the key sustainable features of the Airport Drive project. This includes a 5 million litre stormwater system with a retarding basin, a network of shared user paths allowing sustainable transport alternatives in and around the airport. Rainwater was captured and re-used in lieu of drawing potable water, with the system incorporating an underground 5ML raw water storage tank, located under the proposed raingarden within the Airport Drive Retarding Basin.


Women In Construction Award This award celebrates the women who are dominating the industry and making significant impact in a stereotypically male space. This is an exciting accolade that seeks to honour the achievements of key female players who are campaigning for the role of women in the construction industry at large.

Finalist Lucy Eng Nominated by Beca Limited, New Zealand Nicola Woodward Nominated by MBMpl, New South Wales

This could be you! Are you or your colleagues infinitely valuable? Have you worked on a project that has made significant impact to the community or built environment? If so, you are just what we are looking for! The Infinite Value Awards is your chance to highlight the success of a project, a peer or for your own outstanding achievements. In order to be rewarded and to receive industry recognition, ensure you submit a nomination for the 2016 Infinite Value Awards and tell us why they are infinitely valuable. Keep a look out on the website for key updates around the IVA 2016 at www.infinitevalueawards.com.

Winner

The 2016 Inifinite Value Awards

Lucy Eng Nominated by: Beca Limited, New Zealand

The Australian Institute of Quantity Surveyors

Lucy Eng from Beca Limited NZ; was awarded ‘Professional of the Year’ along with the ‘Women in Construction’ Award. Ms Eng has promoted the advancement of women within the construction industry and has been an advocate in encouraging more women to become Quantity Surveyors.

D: +61 2 8234 4002

Her various roles at Beca Limited have seen Ms Eng actively involved in costing and project control, that has assisted Beca’s clients to deliver capital projects in infrastructure, industrial, commercial and residential buildings in New Zealand.

Level 3

E: events@aiqs.com.au W: www.aiqs.com.au

70 Pitt Street Sydney NSW 2000 Australia

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Grant Warner (CEO AIQS)

L-R: Max Walker (MC), Peter Clack (AIQS President)

Joel Stringer (LendLease - Principal Sponsor)

Max Walker (MC)

Justine McDonald (Coverforce)

Lily D'ambrosio (Victoria Minister)

Eileen Newbury (WoodSolutions)

Jane Bateson (NAWIC)


L-R: Rebecca Krumins (Land and Housing Corporation), Max Walker (MC), Lucy Eng (Beca, now AECOM)

L-R: Justine McDonald (Coverforce), Michael Viscariello (AIQS)

L-R: Peter Clack (AIQS), Max Walker (MC), Colin Fowler (Landside), Leigh Holmes (Spiire)

L-R: Charles Wright (QS Services), Peter Clack (AIQS)

L-R: David Madden (MBM), Grant Warner (AIQS)

L-R: Max Walker (MC), Paul Luciani (Ernst & Young)

L-R: Max Walker (MC), Sushma Suresh (Sweett)

Various pictured


The Infinite Value Awards

MBM Research and Teaching Award Sponsor

MBM is a national independent property consultancy specialising in quantity surveying, tax depreciation, asset and building consulting and Public Private Partnership technical advisory services. MBM was established in 2002 and has offices in Sydney, Melbourne, Brisbane, Canberra and Perth. MBM currently provides services to all industry sectors. They have developed iOPS (Integrated Property Solutions) for tax and selected asset and building consulting services.

Conduit Recruitment Future Leader Award Sponsor

Sponsors

Conduit Recruitment are the most accredited agency within the Australian Construction, Property and Engineering markets and are the preferred recruitment agency for the Australian Institute of Quantity Surveyors and the NSW Master Builders Association. Their geographical reach is Australia wide and they are also an approved supplier to all NSW Government technical departments. Conduit are experts in their specialist fields and their consultants are often ex professionals from the construction and engineering sectors. Their real time market knowledge, expertise and responsiveness means they always find the right candidates for their clients.

Principal Sponsor Coverforce Architectural Excellence Award Sponsor

Coverforce do not simply sell you an insurance policy. Their Insurance Brokers are highly skilled professionals who will take the time to understand the risks you face in your business. They provide you with sound advice, excellent service, and an insurance policy that won't let you down when it's time to claim.

Lend Lease’s Building Business is the principle sponsor of the 2015 Infinite Value Awards Our vision at Lend Lease is to create the best places. The Infinite Value Awards supports this vision by acknowledging outstanding contributions that have been made in our industry over the past 12 months. Lend Lease’s Building business aims to be the best in Australia, continuing to provide sporting and cultural precincts that unite our communities, inspirational places where people learn and work, as well as hospitals where they are cared for. LendLease is a company committed to forging lasting partnerships, delivering to the highest quality and flying the flag for safety and sustainability.

Coverforce was established in 1994 as a specialist provider of income protection and ancillary workers compensation insurance, to workers in the Australian construction industry. The business started with the simple philosophy of delivering an uncompromising level of service that exceeded the customer's expectation. Twenty years on and with the same philosophy, Coverforce has grown to become one of Australia's largest and most capable insurance brokers, offering all classes of insurance to business, professions and industry groups.

Wood Solutions Sustainable / Green Project Award Sponsor

WoodSolutions offers a one-stop, independent source of information and technical details about material performance and code compliant design with wood and wood products via their website. Part of a broader program delivering continuing professional development (CPD) tutorials and events, the WoodSolutions site combines generic wood and timber product information from industry bodies, manufacturers and suppliers, presented in an easily searchable and accessible form. From species performance data to detailed fixings and finishes, case studies to technical guides and span tables - WoodSolutions is designed to deliver relevant, practical and accurate information to design and construction industry professionals.


THE INDUSTRY

The Myths of Tax Depreciation Schedules "There are a series of myths about what you can claim in a tax depreciation that just won’t go away. In good “Mythbusters” style, here are my favourite myths that I see in tax depreciations schedules, with a quick explanation of why they are myths"

1

#

WHEN I BUY A RENTAL PROPERTY I CAN CLAIM A DIV 43 CAPITAL WORKS DEDUCTION AT 2.5% OVER 40 YEARS ON THE PURCHASE PRICE LESS WHATEVER I IDENTIFY AS DEPRECIABLE ASSETS

This myth seems to be based on the warped understanding that the “construction costs” of a building is the purchase price of the building. That’s only the case if you are the first owner (and may not even be in that case… see TR 97/25 on speculative builders). The actual construction costs are in no way related to the purchase price.

Ken Mansell Ken is a tax nerd who runs taxrambling.com. Ken also conducts the various tax depreciation seminars run by AIQS.

Have a look at section 43-70. This explains what is construction expenditure and it lists all the ACTUAL COSTS of construction, not the purchase price for some subsequent purchaser. In addition, in Taxation Ruling 97/25 the Commissioner states that to work out what to deduct you need to… “establish the actual cost of the building”. And finally the Commissioner states in his rental property guide “Remember, none of the following can be used as the construction cost: the purchase price of the building and land, the insured cost or the replacement cost.”

THE BUILDING ECONOMIST - DECEMBER 2015 - 35


2

#

PURCHASE PRICE LESS UNDEDUCTED CONSTRUCTION EXPENDITURE LESS NON DEDUCTIBLE AMOUNTS = COST OF DEPRECIABLE ASSETS

This is commonly known as a “top down” schedule and it is so, so, so wrong! Division 40 states you can claim depreciation based on what the depreciable asset “cost” you but it does not give a valuation method. I am a tax nerd and not a QS but I am sure that these top down approaches are totally unreasonable valuation methods. For example, if you pay $2 million for a building with just a dishwasher in it and the undeducted construction expenditure is $1 million, don’t tell me the arms length value paid for the dishwasher is $1 million. Ridiculous. Like myth #1, people are forgetting there is a difference between the purchase price and construction expenditure due to the building increasing in value, not old secondhand depreciable assets magically increasing in value.

3

#

THE COMMISSIONER’S EFFECTIVE LIFE RULING MUST BE USED FOR ALL ASSETS, NO MATTER WHAT!

The Commissioner of Taxation is very clear in his yearly ruling on effective lives that the ruling ONLY APPLIES TO NEW DEPRECIABLE ASSETS. In the 2015 ruling he states that the effective life for new internal window blinds is 10 years. He does not say the effective life for second hand internal window blinds is 10 years. If you buy a 5-yearold building that has 5-year-old internal window blinds you are not required to depreciate the blinds using a 10-year effective life. If you are attempting to get the best outcome for your clients I would hope you would consider that the effective life will be less that 10 years.

4

#

THERE ARE DIFFERENT RULES FOR SECOND HAND DEPRECIABLE ASSETS DEPENDING ON WHAT THE PREVIOUS OWNERS DID WITH THE ASSET.

There is nothing in Division 40 that mentions second hand assets. Nothing. So it does not matter if the previous owner fully depreciated it or not (if they did and you paid for it then the previous owner has an assessable balancing adjustment – see Myth #5).

THE BUILDING ECONOMIST - DECEMBER 2015 - 36

Assuming you did not buy it from an associate, it does not matter if they used the prime cost or diminishing value method. You choose what you want to use irrespective of what they used and you don’t need to know anything about the previous owners use for a depreciable asset as IT DOES NOT CHANGE WHAT YOU PAID FOR IT OR WHAT ITS EFFECTIVE LIFE IS.

5

#

IF MY ASSETS/ BUILDINGS IS DESTROYED I CAN CLAIM THE BALANCE OF THE DEPRECIATION OR THE UNDEDUCTED CONSTRUCTION COSTS.

There is some truth in this… if we just ignore that most of these buildings and assets are covered by insurance. Where there is insurance, things are very different. Staring with Division 43 capital works, it is true that where a taxpayer’s capital works are destroyed, then a deduction is permitted for the Undeducted Construction Expenditure. However, if they receive an amount under an insurance policy for the destruction they are required to reduce the Undeducted Construction Expenditure by this amount. For Division 40 depreciable assets, if a taxpayer ceases to hold a depreciating asset (sold or destroyed), a “balancing adjustment” will occur. You work out the balancing adjustment amount by comparing the asset’s termination value (sale proceeds) and its adjustable value (written down value). If the termination value is greater, you include the excess in your assessable income but if the termination value is less, you deduct the difference. But remember, the termination value of a depreciating asset that is lost or destroyed includes the amount received under an insurance policy.

6

#

ONCE I HAVE SPENT THE MONEY ON A DEPRECIABLE ASSET OR A CAPITAL WORK I CLAIM DEPRECIATION ON IT.

It does not matter when you pay for these assets at all! For depreciable assets under Division 40, you can start depreciating an asset once it is “used, or installed ready for use”. For Capital Works under Division 43, a deduction is not permitted until construction is completed, even though the works may be used in part prior to the completion of construction.


EVENTS & SOCIAL INTERNATIONAL BIM CONFERENCE - UAE

On 25th November 2015, the UAE branch of the Australian Institute of Quantity Surveyors (AIQS-UAE) held an International Conference on Building Information Modeling (BIM). The event was hosted at the Hyatt Regency Dubai Creek Heights in Dubai, United Arab Emirates. The conference opened by the AIQS-UAE representative Mr Ajantha Premarathna, was designed to raise awareness on BIM amongst professionals in the Middle East construction industry. BIM Experts from the UAE and Australia joined hands to make a commendable presentation on all aspects of BIM, viz: Introduction of BIM, Practical Application, Best Practice to reduce capital and operational expenditure, Managing Legal Issues to facilitate BIM, BIM Application for Quantity Surveyors and BIM Case Studies.

THE BUILDING ECONOMIST - DECEMBER 2015 - 37


ACT CHAPTER

NSW CHAPTER

ACT Chapter Before the 2015 holiday break, many Chapters chose to celebrate over drinks. But the ACT Chapter chose to do something more adventerous and top off the end of the year, with sailing on Lake Burley Griffin, ACT. NSW Chapter The last NSW Event of the year was a CPD Event on Construction Insurances.

THE BUILDING ECONOMIST - DECEMBER 2015 - 38


BUILDING COST INDEX THE BUILDING COST INDEX IS PUBLISHED IN THE PRINT VERSION OF THE BUILDING ECONOMIST. IT CONTAINS DATA THAT CAN BE USED AS A PREDICTOR FOR THE ESTIMATED TIMES FOR DESIGN AND CONSTRUCTION AND INCLUDES A SUMMARY OF THE PAST, PRESENT AND ESTIMATED FUTURE CONSTRUCTION COSTS.


The Building Economist - December 2015 - The Yearly Wrap Up  

The 2015 Infinite Value Awards Gala Dinner Retrospective

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