Construction Global - July 2018

J ULY 2018

TOP 10

GREEN BUILDINGS Sydney Motoway Corporation CONSTRUCTION’S FORWARD THINKERS

NUCLEAR CONSTRUCTION:

T5 CONSTRUCTION

SKILLS SHORTAGES AND THE REVIVAL OF AN INDUSTRY

SERVICES LEADING THE FIELD IN DATA CENTRE CONSTRUCTION EXCLUSIVE INTERVIEW WITH ROBBIE SOVIE, SENIOR VP, DEVELOPMENT, T5CS

FOREWORD

ello and welcome to the July edition of Construction Global magazine.

This month’s edition features an exclusive interview with Sydney Motorway Corporation’s CIO Shaune Rosser, who explains how a sound technological foundation is helping the company to deliver vital infrastructure across the region.

“If we want to implement new capabilities we are quickly able to deploy them. And we can be strategically focused rather than operationally. That is where we start talking about AI and machine learning and predictive analytics and building a digital engineering capability,” he tells us.

Another exclusive interview features nuclear engineering expert Assystem. Christian Jeanneau, SVP of Nuclear, talks about the challenges and opportunities facing an industry subject to mass consumer and political discussion.

Elsewhere, this issue’s top 10 looks at the some of the best examples of green buildings according to architect and civil engineering firm Woods Hardwick.

Finally, be sure to read our other exclusive insights from the likes of LYT Architecture, EvoBits, T5 Construction Services and New Horizon Academy.

H

Enjoy the issue!

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CONTENTS

T5

CONSTRUCTION SERVICES:

The data centre experts

8 SKILLS SHORTAGES,

SMRS AND THE REVIVAL OF NUCLEAR CONSTRUCTION

22

32

Top10 green buildings\\ 44

Eye in

the sky

CONTENTS

58 New Horizon Academy

70 Kuhn Krause 80

EvoBits

Navigating the complexities of crypto mining

LYT Architecture

THE AGENDA SETTER OF SOUTH AFRICAN ARCHITECTURE

90

102

Sydney Motorway xxxCorporation

HOW

BEST PRACTICE PROCUREMENT IS DRIVING GROWTH AT CUSHMAN & WAKEFIELD

120 Cushman & Wakefield

F o r e v e r On .

T5 CONSTRUCTION SERVICES:

The data center experts AS A PROVEN EXPERT IN THE RAPIDLY-EXPANDING DATA CENTER FIELD, T5 CONSTRUCTION SERVICE IS FINDING ITS TURNKEY OFFERING IN HIGH DEMAND

Written by James Henderson Produced by Tom Venturo

T5 CONSTRUCTION SERVICES

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ith the proliferation of high speed networks and information exchange, the data center market is on the crest of a wave. If a recent report is to be believed, the data center infrastructure market is expected to surpass $90bn in the next six years with new technology driving demand.

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T5: An introduction In addition to delivering first class data center facilities as a landlord, T5 Data Centers has become a proven expert in building data center facilities via its construction division T5 Construction Services, LLC (T5CS).

T5CS excels at various service offerings: Turnkey data hall projects; data center upgrade/ expansion projects; equipment procurement; and project management and consulting.

T5CS’ expertise allows them to execute with regards to design, equipment procurement, construction, start-up and commissioning, security implementation, successful J U LY 2 0 1 8

integration, and turnover to the facility management team.

Put simply, building and operating data centers is T5’s core competency. T5’s ability to perform projects in a turnkey manner allows their clients to focus on their core businesses. “We view ourselves as an extension of our client’s staff. We understand what its like to be an owner/end user, because we are one. As a landlord, we tailor our design to meet the needs of our client.

We take the same focus when our construction service group performs turnkey construction projects. Our goal is to customize the right solution for our clients,” says Robbie Sovie, Senior Vice President, Development, for T5 Construction Services The message from T5 to its clients – many of which are Fortune 500 companies – is a simple but effective one: “Let us build the data center you’d like to build yourself”. To deliver on such a personal pitch requires extremely close collaboration between client and contractor. “A

T5CS’S SERVICES

USA

TURNKEY DATA HALL PROJECTS Delivering turnkey data hall design/construction projects on schedule and under budget. The turnkey delivery model allows T5 take leadership for the entire project and proactively implement a solution that truly works for the customer.

DATA CENTER UPGRADE/EXPANSION PROJECTS T5 has experience in managing a construction project in a “live” data center environment. The company collaborates with the facility management team to implement a solution that works for both construction and operations.

EQUIPMENT PROCUREMENT T5CS has strong relationships across the equipment vendor industry, and believes these relationships are attributable to our success because buying power helps garner the best possible costs per unit and the best lead times available to the market. By utilizing these relationships, T5 has successfully procured equipment to enhance construction schedules, while also saving costs for the customer.

PROJECT MANAGEMENT/CONSULTING T5 offers project management and consulting services for enterprise data center projects. It has proven expertise in the overall leadership/ management of due diligence, design, contract procurement, construction procurement, preconstruction, project delivery, closeout, and handoff to facility management team. w w w. c o n s t r u c t i o n g l o b a l . c o m

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USA

lot of companies will say they want to become partners to their clients but T5 truly means it,” says Sovie. “We sit across the table from our clients and look them in the eye to understand exactly what it is they want, and then we strive to achieve that. We challenge our team to build those relationships because they result in the best projects. One team, one dream, let’s make it happen – that’s the approach.”

Similarly, T5 values its relationships with equipment vendors. T5’s vendors are critical to its success. “As owners we purchase equipment in scale,” says Sovie, “so we have purchasing power.

We’ve developed healthy relationships with a group of vendors who have proven their ability to pull a rabbit out of a hat for us when we need them to.

When you can call some of the big players and say ‘we need a generator in three months’ and they figure out a way to make that happen, it’s huge.”

“WE’VE DEVELOPED HEALTHY RELATIONSHIPS WITH A GROUP OF VENDORS WHO HAVE PROVEN THEIR ABILITY TO PULL A RABBIT OUT OF A HAT FOR US WHEN WE NEED THEM TO” — Robbie Sovie Senior Vice President, Development, for T5 Construction Services

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How T5 operates T5CS thrives because its foundation is strong. T5CS’s ability to execute on five core principles is key to its success: SAFETY: Adherence and execution of strict safety process and procedures w w w. c o n s t r u c t i o n g l o b a l . c o m

USA

is one of T5’s core focus points.

Maintaining a positive safety record is critical to T5CS, which has a Zero Accident Objective across all our projects.

PROCESS & PROCEDURE: Details, details, details… executing on the process and procedures is not just busy work for T5CS. The company understands that being detailed and diligent with process and procedures is critical to success.

Its processes and procedures are utilized at every level of projects: design, preconstruction and bid levelling, construction delivery, start-up and commissioning delivery, security integration, completion and closeout, etc.

COMMUNICATION & COLLABORATION: Effective communication and collaboration is critical to a successful project.

“We want our clients to enjoy the construction experience,” adds Sovie. As an example, T5CS uses a CFD analysis (Computational Fluid Dynamics) to analyse IT loads within a data hall. T5CS collaborates with clients on the

most optimal data hall design based on what the CFD analysis presents. “The CFD model is important when clients are trying to maximise their output in terms of killowatts. It shows us where we need to contain temperatures via containment, chimney, or other design measures,” says Sovie.

As part of its service offering, T5CS is adept at data center upgrade programs and expansion projects, where it has to undertake mission critical work in the ‘live’ environment. Once again, collaboration is crucially important, says Sovie: “I think our track record with working on live projects is a major reason why clients come to us. That’s more the reason they use us. You simply have to collaborate with the facility group, so that you’re going through maintenance procedures step-by-step; you’ve got to do ‘A’ before you do ‘B’ to get to ‘C’, so we stick rigidly to that. Added to that, it’s a question of the correct competences and skills for the job, and our team has that.”

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T5 CONSTRUCTION SERVICES

Founded in

2008

USA

PROJECT FOCUS T5 data centers owns and operates data centers in all of the sector’s most important markets, including Dallas, LA, Atlanta, Portland, Charlotte, Ireland, Chicago, and New York. Here are a few of the company’s most recent project highlights, including its entrance into the European market…

T5@ATLANTA II T5 Data Centers recently finalised the purchase of a new 40-acre property in Douglas County as the location for T5@Atlanta II, the company’s second data center in the Atlanta region. The land acquisition marks the first step in the construction of a new 130,000-square-foot data center, purpose-built to meet the needs of hyperscale enterprise customers. When it is completed, the T5@ Atlanta II data center will feature 10 MW of critical power load and 66,667 sq ft of white floor space.

T5@IRELAND The new T5@Ireland Facility, is located just five miles from Cork City and stationed conveniently over a global IP transit hub to keep you connected to North America and mainland Europe. The five largest fibre providers in Ireland will provide a direct connection to the campus, that is built with future expansion in mind.

T5@DALLAS III In October last year, T5 Data Centers completed construction on the state-ofthe-art T5@Dallas III on its Plano data center campus. The new greenfield, purpose-built data center is tenant ready and offers the same robust construction as the balance of the T5@Dallas campus, including a dedicated data center support team. The T5@Dallas campus is located in Plano’s Legacy Business Park. The T5@Dallas III facility is a LEED Silver certified, concurrently maintainable data center with 94,400 sq ft of available data hall space and 10.75 MW of critical power.

T5@CHICAGO In March of this year, T5 Data Centers completed construction on the stateof-the-art T5@Chicago located in Elk Grove Village, IL. The new purpose-built data center is tenant ready and offers the same robust construction as the balance of other T5 facilities, including a dedicated data center support team. The T5@Chicago facility is a LEED Certified, concurrently maintainable data center with approximately 70,000 sq ft of data hall space and 10 MW of critical power. w w w. c o n s t r u c t i o n g l o b a l . c o m

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Nationwide Landscape Civil Engineers Architectures Planners Mission Critical Specialist: Hugo Morales, P.E. hugo.morales@kimley-horn.com 817.339.2294 | 469.288.3185

Mission Critical Specialist:

“WE UNDERSTAND THAT ‘LIVE PRODUCTION’ DATES CAN BE THE DIFFERENCE IN SUCCESS VS. FAILURE FOR OUR CLIENTS. WE MANAGE THE CLIENTS SCHEDULE EXPECTATIONS AND IS IF WERE OUR OWN SCHEDULE”

— Robbie Sovie Senior Vice President, Development, for T5 Construction Services

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BUDGET ADHEARENCE: Focusing on the project budget is critical to T5CS because its critical to our client. As an owner and end user, T5 understands what it means to manage a budget from a client’s perspective. “We manage the client’s budget as we would manage our own budget,” Sovie says.

SCHEDULE ADHERANCE: Just like the budget, schedule is important for various reasons. “We understand that ‘live production’

USA

WHY PARTNER WITH T5 CONSTRUCTION SERVICES? | T5 DATA CENTERS

Forever On .

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dates can be the difference in success vs. failure for our Clients,” Sovies explains. “We manage the clients schedule expectations and is if were our own schedule.”

As somebody working at the epicentre of the data center space, Sovie says he is “unsurprised” by the prediction that the value of the market will surpass $90bn by 2024, pointing out that just around half of the world’s population have internet access.

“There are billions of people who at some stage will get that access, so when you take that

into consideration alongside ever evolving technology, whether that be IoT or AI, it’s going to drive a lot of further capacity.

You have to also consider that some of the older generation are not too tech-savvy, which is not going to be the case with generations to come. It’s just kind of natural evolution so unless servers get way more efficient that demand for data center space is just going to increase.”

As is, you’d expect, the demand for proven experts in the data centre construction field. w w w. c o n s t r u c t i o n g l o b a l . c o m

C O N S T R U C T I O N S T R AT E G I E S

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WRITTEN BY

TOM WADLOW J U LY 2 0 1 8

SKILLS SHORTAGES,

SMRS AND THE REVIVAL OF NUCLEAR CONSTRUCTION CHRISTIAN JEANNEAU, SVP OF NUCLEAR AT ASSYSTEM, TALKS ABOUT THE CHALLENGES AND OPPORTUNITIES FACING AN INDUSTRY SUBJECT TO MASS CONSUMER AND POLITICAL DISCUSSION

T

he influential economist John Maynard Keynes famously once said: “The difficulty lies not so much in developing new ideas as in escaping from old ones.”

While Keynes fundamentally transformed the theory and practice of macroeconomics, his oft-cited statement resonates with the way in which civilisation has gone and continues to go about generating power. Keynes died in 1946, but fast-forward more than 70 years and the reliance on oil, gas and coal has barely changed, although at the time of his death the picture looked like it might radically transform. w w w. c o n s t r u c t i o n g l o b a l . c o m

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C O N S T R U C T I O N S T R AT E G I E S

When the focus of nuclear fission development shifted from bomb making to electricity generation after the Second World War, it seemed that an escape from dependency on fossil fuel burning was a real possibility.

Nuclear reactors started to appear through the 1950s, with construction of these power plants ramping up significantly through the ensuing decades, reaching its peak in the mid-1980s before the 1986 Chernobyl disaster.

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Although confidence in nuclear plummeted and project numbers steadily fell, reactors continued to be built, and the levels of new commissions have remained relatively stable barring the years around the 2008 financial crash.

China in particular took on the mantle, and while the world hesitated once more following the meltdown at Fukushima in 2011, it alone opened 20 new reactors in the years up to 2017. This represents around two thirds of all new reactor startups, with Russia, Argentina and the US the only non-Asian countries switching on nuclear power stations.

However, even China, the great bastion of the nuclear industry, is showing signs of slowdown.

Last year it started up three new reactors and commenced construction on just one. As of 1 January 2018, there are 52 reactors under construction, with Bangladesh, India and South Korea each commissioning one new build alongside China.

If nuclear fission is indeed to provide its part of J U LY 2 0 1 8

the answer to escaping fossil fuels, a fresh injection of innovation is needed.

NEW OPPORTUNITIES The challenges facing nuclear construction, however, also present opportunities for companies like French nuclear engineering specialist Assystem.

An ever-present in France’s nuclear power relationship, the company was originally established to support the commissioning and start-up of the country’s first fleet of reactors in 1966.

Assystem has since diversified into other industries in order to sustain healthy growth, but nuclear still represents a core line of business, one which Christian Jeanneau, SVP of Nuclear, remains excited to work in.

“The nuclear construction industry is an attractive one to work in for two reasons,” he states. “The first is there is a strong motivation with new generation workers to move towards a carbon-free future. The second reason is the opportunity for innovation through technology and new ideas.”

If a company is qualified enough to inject the innovation required to propel nuclear into the mainstream, it is w w w. c o n s t r u c t i o n g l o b a l . c o m

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C O N S T R U C T I O N S T R AT E G I E S

Assystem, as Jeanneau goes on to explain. “We learned a lot as a company 50 years ago when we started nuclear commissioning in France and are now extremely specialised in highly complex projects that involve a lot of regulatory compliance.

“Nuclear still accounts for around 50% of our business activity and we are very much part of the global nuclear DNA. We have an important role to play in many countries’ efforts to transition away from a purely carbon-based energy model.”

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SMRS One development that has the potential to change the face of nuclear construction is the emergence of small modular reactors (SMRs).

These smaller nuclear fission reactors are manufactured off-site, cutting construction costs and disruption, and are seen by its proponents as a viable alternative to costly renewals of conventional reactors.

While the reactors’ typical output of 300MWe of power is less than its larger, more traditional counterpart, multiple reactors can be prefabricated and assembled on one site, J U LY 2 0 1 8

“ NUCLEAR STILL ACCOUNTS FOR AROUND 50% OF OUR BUSINESS ACTIVITY AND WE ARE VERY MUCH PART OF THE GLOBAL NUCLEAR DNA. WE HAVE AN IMPORTANT ROLE TO PLAY IN MANY COUNTRIES’ EFFORTS TO TRANSITION AWAY FROM A PURELY CARBON-BASED ENERGY MODEL” — Christian Jeanneau SVP Nuclear, Assystem

allowing for larger plants to be built. Proponents also claim they will be faster, cheaper and less risky to build while safer to operate. Jeanneau and Assystem are staunch advocates.

“SMRs are very interesting,” Jeanneau says. “In the US we are starting to see some interest in SMR startups, which is encouraging. These smaller reactors open up the industry to organisations which aren’t either state-owned or large multinationals, which have dominated the industry in the past.

“The fact they are smaller and therefore easier to build is certainly one key characteristic, but for me the most interesting characteristic of SMRs is that they are modular, and you can prefabricate off-site and assemble on-site at the last moment.

“By being able to construct these off-site and transport them, it opens up potential to become very competitive in producing SMRs in one country and selling all over the world.

The next step is to create a common licensing strategy.”

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C O N S T R U C T I O N S T R AT E G I E S

SOLVING THE SKILLS SHORTAGE?

28

Innovation like this, along with numerous digital-focussed solutions, could help to bridge the oft-cited skills gap facing the industry.

“I don’t see a skills shortage right now, but with more projects coming back and with more technology being used the industry may face a challenge,” says Jeanneau, who is also Director of the Assystem Nuclear Institute.

“Currently we are able to provide the best technology to our clients and deliver this with 2,800 nuclear staff around the world.”

Established in 2008, the institute aims to transmit the skills and knowledge developed by Assystem across areas such as dependability, commissioning and decommissioning of nuclear sites to new generations of engineers.

“Another programme we have launched is called Imagine, which helps us to share innovation ideas,” adds Jeanneau. The firm also partners closely with J U LY 2 0 1 8

universities to help provide the very specific teachings and knowledge required for students to learn the trade.

“We have the skills and we have the knowledge,” Jeanneau continues. “For the last decade our institute has been dedicated to developing skills in nuclear, and this for me is a major differentiator between us and our competition.

This industry is so heavily regulated and documented, but digitisation can help this and I am confident we will be able to match the skills needed in the future.”

AND WHAT OF THE FUTURE OF NUCLEAR ITSELF AS A VIABLE, MEANINGFUL PART OF A CARBON-FREE ENERGY MIX? “I am on optimist, for sure,” Jeanneau says. “I believe nuclear can and will, along with renewable energy, replace the power generated by coal, gas and oil.

“At the moment nuclear holds a very small share of the global energy mix, but we are generating more and more demand for power as technology advances in all areas. Nuclear will help to fulfil this demand.”

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HAVE YOU SEEN OUR OTHER TITLES?

CONSTRUCTION 4.0

Eye in

WRIT TEN BY

MATT HIGH

the sky

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y

In any construction programme an advanced, real-time monitoring solution is a key asset in successful project execution. That’s where Bird.i’s advanced satellite imagery and artificial intelligence comes in

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CONSTRUCTION 4.0

J U LY 2 0 1 8

he sheer pace at which global construction development occurs dictates that an up-to-date, real-time view of any construction project is one of, if not the most valuable asset any business can possess. Imagine, for example, the potential of each scanning simple satellite data and imagery that reveals – to the smallest detail – progress or changes over the last 24 hours.

Such advanced technology can show that a crane has moved from its position two days ago meaning that a certain aspect of the build is complete, or that the position of people or equipment gives insight into exactly what’s happening on site at any given time. Such knowledge not only improves the entire project management process, but allows for better forward planning and decision making, and can give greater context to the wider construction market in any given sector.

The answer, according to innovative startup Bird.i, is a combination of advanced satellite imagery data and the latest artificial intelligence technology. The company, which provides insight and data to global businesses through satellite, drone and airborne imagery in real-time has developed and launched two bespoke ‘construction trackers’, the New Construction Tracker and the Construction Progress Tracker.

As their names suggest, the new trackers monitor both the creation of new construction sites

T

w w w. c o n s t r u c t i o n g l o b a l . c o m

CONSTRUCTION 4.0

and the progress of existing ones respectively by applying the latest artificial intelligence techniques to existing satellite image data.

“The trackers are derived from our analytics platform which applies proprietary artificial intelligence and computer vision techniques to regular satellite imagery,” says Corentin Guillo, Bird.i’s Founder and Chief Executive. “We’ve spent the last couple of years developing and training the Construction Trackers so that they can detect a new construction site over a large area or track the progress of current operational projects.

“The capabilities of the trackers are now mature, in that they can detect the nature of a new construction site – whether it’s residential, commercial or infrastructure – or they can identify the construction stage of an existing one, things like planning, foundation, elevation, commissioning and so on.”

The products have been extensively tested and developed in J U LY 2 0 1 8

“ The capabilities of the trackers are now mature, in that they can detect the nature of a new construction site – whether it’s residential, commercial or infrastructure – or they can identify the construction stage of an existing one, things like planning, foundation, elevation, commissioning and so on”

–

Corentin Guillo Founder and Chief Executive, Bird.i the rapidly growing Middle East region and North Africa, with the Construction Progress Tracker currently monitoring some 1,200plus sites in the UAE – the company has also collated the data collected into its first extensive construction insight report for Dubai.

And while satellite imagery is already widely used across a number of global industries, it is in the incorporation of AI technology, deep learning and computer vision techniques that Bird.i’s solution is truly innovative.

“It’s a unique platform solution that can detect any changes from two images over the same location and at two different dates,” Guillo explains. “It involves some complex technology – those two images would have lots of changes in terms of their colour, shadows, resolution and acquisition angles, for example. Our trackers remove all of this and simply focus on the real changes like ground w w w. c o n s t r u c t i o n g l o b a l . c o m

CONSTRUCTION 4.0

movement, the addition of new materi-

capabilities of the technology. “You can

als or floors, or perhaps new vehicles or

view a specific construction project in

cranes and so forth.”

our portal, get a notification when a new

Both trackers, says Guillo, comple-

image has been acquired and a status of

ment Bird.i’s original offering which is

progress detected, and this is a good

based on viewing regular earth observa-

user experience,” Guillo comments.

tion imagery in a very simple and

“But when you have hundreds or even

affordable way. They can be used by

thousands of construction sites over a

customers through Bird.i’s portal or inte-

country or a continent and your data-

grated into an existing solution that

base task on a regular basis is the

triggers them automatically.

tracker, then you can pull out a report at

It is the latter that exploits the full

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the end of every week or month that will

tell you which sites have stopped progressing. This allows you to target your resources only when it is relevant. The benefits are much more than just user experience, they are saving a lot of human and financial resources.”

As to why such technology poses such potential for the global construction industry, Guillo says: “At the micro level (a single construction site) it gives timely, trustable evidence of what a site looks like at an exact date.

This information can then be used to make informed strategic decisions. It also removes the need for any travel to the site.

“On a broader level – say a project portfolio or even an entire region – the technology allows for signals about the wider construction and real estate markets, and how they are changing over time,” he adds. “In this context our trackers can be used to monitor such things as cities development and planning application enforcement.”

For Guillo, and indeed Bird.i, the development of the trackers is largely about solving problems for customers. It’s a concept that fits within the w w w. c o n s t r u c t i o n g l o b a l . c o m

CONSTRUCTION 4.0

“ On a broader level – say a project portfolio or even an entire region – the technology allows for signals about the wider construction and real estate markets, and how they are changing over time”

–

Corentin Guillo Founder and Chief Executive, Bird.i

J U LY 2 0 1 8

company’s wider mission statement of providing powerful data

Dubai Expo 2020.

The company has plans to roll

and insight for all. Bird.i, Guillo

out tracker technology to more

says, is “democratising the

than 15,000 construction projects

access to earth observation

in the Middle East by the end of

imagery, and more importantly to

2018. Moving forwards, the

the insight it contains.

potential within the technology

“The two products allow us to

means it can easily be extended

address different problems for

to other industry sectors too.

customers. Construction Pro-

These could include the oil

gress Tracker is more a matter of

and gas industry, power

operations cost reduction and

and water sectors, mining or

how we help customers to target

manufacturing and more.

their resources to projects that

“We can detect any new con-

were on hold and suddenly

struction activities within a

resuming, or vice-versa. The New

specific distance from an oil

Construction Tracker, on the other

pipeline, or things like vegeta-

hand, offers customers opportu-

tion changes in the

nities to increase their revenues

surroundings of rail networks to

through developing their project

prevent ground movement,”

portfolio by scaling up to new

says Guillo. “Initially we plan to

countries or continents.”

roll out trackers first in MENA,

Thus far, the technology has

and then to look to expand to

proved highly successful. It has,

new continents based on the

for example, tracked a significant

market demand. The advantage

increase in the amount of new

is that, by keeping them all run-

residential developments during

ning, we will accumulate all

the second half of 2017 in the

these data points that will build

southern sector of Dubai Creek,

up a detailed global database of

and closely monitored new major

construction sites and their his-

retail complexes such as the

torical and current status.” w w w. c o n s t r u c t i o n g l o b a l . c o m

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T O P 10

Top10 green buildings\ WRIT TEN BY

WOODS HARDWICK

44

Architect and civil engineering firm Woods Hardwick chooses its top 10 green buildings...

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\\

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l

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T O P 10

This article has been written as a team effort. We wanted to use the opportunity to have a discussion about sustainability and green buildings that spanned across our design practice studios //The selection for the buildings arose from a discussion between:

Simon Bennet Director of the Structural Engineering Studio

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Ford End Watermill Ivinghoe, Buckinghamshire - Built primarily with sustainable, recyclable, and compostable materials (timber) - Zero carbon emissions from its process.

- L ong service life (at least 1787 to 1963) - Now a museum

Why choose it? Because it dem-

Nicole Portieri

onstrates why we now have to

years past, our technology was

Design Director of the Commercial Studio

Peter Prescott Associate Director of the Design Delivery Studio

We decided to select buildings based on what has inspired us throughout our careers as architects and engineers, buildings we have admired, that struck a chord with us and shaped our experience and interest rather the most famous or the greenest, as this ultimately is part of the conversation.

How green is green?

J U LY 2 0 1 8

think hard about green issues. In much greener. Now we are trying to reduce the environmental impact of our inherently nongreen modern technologies.

Should we be learning from the past more?

Sainsburys Greenwich, London, UK - Chetwood Architects’ award winning 1999 building now demolished - Genuine attempt to produce a low carbon version of this building typology - L ots of natural light. Earth sheltered. All on a contaminated former industrial site

Why choose it? A pioneering building that showed what is possible. It was a nicer place to be than other supermarkets. It was refused listing and controversially demolished in 2016.

The building raises lots of questions.

Does it make sense to deny a building listing just because it is too young?

Would it have been OK to demolish St

47

Said Business school phase II Oxford, UK - New academic building - Uses energy piles - Full integration of the structural and services design

Paul’s cathedral 15 years after its com-

Why choose it? Because, unusually,

pletion? Was there a lack of

it uses the foundation piles as a

commitment from big business? Or

source of heat/cooling via a closed

does the fact that it’s now gone prove

loop ground source heat pump

that it wasn’t a good building anyway?

system. This is hidden and required

Whatever your view, the building

very careful engineering and

moved the debate about sustainability

coordination to make it work.

w w w. c o n s t r u c t i o n g l o b a l . c o m

T O P 10

BedZED London, UK - South London eco village - ‘zero carbon’

Canary Wharf underground station London, UK

48

- Built to facilitate sustainable public transport - E xposed structure reducing embodied carbon by reducing the need for finishes - T hermal mass of structure helps keep the spaces cool -G enerous spaces for circulation to account for future passenger growth - Public park provided on top

Why choose it? This project used the

opportunity provided by a major infrastructure project (the Jubilee Line extension) to provide public space in an area where that commodity was being squeezed out. It brilliantly expresses the engineering of the building with its beautiful architecture, without the need for energy consuming and maintenance requiring finishes.

J U LY 2 0 1 8

Why choose it? It is perhaps rather

predictable and its architecture is not to everyone’s taste, but it was a ground-breaking scheme in its time and, like the Greenwich Sainsbury’s, is a benchmark against which other projects are still compared.

Across Building Fukuoka, Japan Why choose it? Opened in 1995, it is an early example of a having a green roof as the theme for the project. The green roof build was chosen in order to salvage one of the last parks in

The Glass Chapel

Fukuoka City.

Alabama, USA - In its initial years, the Studio (founded in 1993 by Samuel Mockbee so early days for green ethos) became known for establishing an ethos of recycling, reusing and remaking. It is now an undergraduate program at the School of Architecture Auburn University Alabama, US - Part of Rural Studio’s philosophy is to continually question what should be built, rather than what can be built, both for the performance and operation of the projects.

- A local project: the glass Chapel is a community building built by and with the community.

-M ulti-functional: the Glass Chapel serves as a transportation stop, community gathering space, chapel for the local choral group and distribution centre for children’s summer school meals.

-M aterials re-use: car windows salvaged from a Chicago scrap yard provide striking roofing material on the north side atop

49

“In order to be certified as a Living Building, a structure is required to produce as much energy as it uses in a year” w w w. c o n s t r u c t i o n g l o b a l . c o m

T O P 10

The Bullitt Center Seattle, Washington, USA - Built for the Living Building Challenge. In order to be certified as a Living Building, a structure is required to produce as much energy as it uses in a year, as well as capture and treat rainwater for all its needs for at least 12 continuous months. The structure must also meet rigorous standards for “Red List” compliant materials and for the quality of its indoor environment.

- T he building has a 250-year lifespan.

50

Vancouver Convention Center Vancouver, Canada - “I’ve been and it’s remarkable” - Nicole Portieri - Massive green roof among other green features - Operations and Maintenance Second Accreditation - “ The Vancouver Convention Centre is proud to announce that its iconic West building has been awarded LEED Platinum certification (version 4) for Existing Buildings: Operations and Maintenance by the Canada Green Building Council.

Coupled with its 2010 Platinum certification for New Construction, the Vancouver Convention Centre is the first double LEED Platinum convention centre in the world.”

J U LY 2 0 1 8

Upton Housing Scheme

51

Northampton, UK - National PLC house builder (David Wilson) challenging its usual housing model - One of the first schemes of its kind to achieve excellent Eco Homes ratings - Contemporary approach using BRE A-rated Green Guide materials together with rainwater harvesting and PV water heating

Why choose it? Because it demonstrates a

flagship scheme built by a volume house builder. The scheme was used as a primary case study of the former Code for Sustainable Houses (sustainability monitoring accreditation), which has subsequently been incorporated as a compulsory requirement within the current national building regulations. w w w. c o n s t r u c t i o n g l o b a l . c o m

VISIT OUR WEBSITE

R E A D T H E L AT E S T I S S U E

EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY ANDREW WOODS from around the world

23 OCTOBER

Global Construction Summit 25-26 SEPTEMBER 54

[ SHERATON, NEW YORK, USA ]

The 2017 Global Con-

Construction Technology Forum

struction Summit,

[ HOTEL DUBAI MARINA, DUBAI, UAE ]

Marcum LLP, brings

The inaugural Construction Technology Forum 2018 is

together the construction

a new two-day event designed to provide insights on

industry’s top world mar-

how adopting technology can reduce operational

ket experts to help

costs, boost productivity, and enhance overall quality

attendees build their busi-

across all elements of the industry supply-chain.

ness and compete on the

Attend and hear about specific technological solutions

international playing field.

from leading clients, engineers and top-tier vendors

Event participants will

involved in the region’s leading built environment pro-

gain market intelligence

jects. The event will focus on the transformation of the

to grow and leverage their

industry over the next decade as the adoption and

company’s strengths

application of technology is accelerated.

among new and changing

UAVs, 3D printing, Business Information Modelling

opportunities in Asia-

(BIM), driverless cars, autonomous equipment and

Pacific, North and South

advanced building materials will be just some of the

America, Europe, Africa

key technologies profiled.

and the Middle East.

J U LY 2 0 1 8

presented by ENR and

23-24 OCTOBER

London Build 2018 [ OLYMPIA NATIONAL, LONDON ]

7-9 NOVEMBER

ing construction show

Design-Build Institute of America DBIA Conference and Expo 2018

to cover London and

[ NEW ORLEANS, LA ]

the south of England.

DBIA’s annual Design-Build Conference & Expo grows

London Build unites an

each year as an increasing number of the nation’s

incredible range of high-

owners and design-builders declare this is their num-

level attendees involved

ber one design-build event. 2018 is also DBIA’s silver

in construction, archi-

anniversary, so come celebrate 25 years of design-

tecture, infrastructure

build success with us. Owners and design-builders

and design in London to

across the nation, as well as sectors and professions

discuss a wide-ranging

come together for three days of workshops, panel dis-

source of issues relating

cussions and keynotes by industry leaders address-

to every aspect of

ing the real-world challenges America’s design-build

the industry.

teams and owners face across all sectors.

London Build is the lead-

w w w. c o n s t r u c t i o n g l o b a l . c o m

55

EVENTS & A S S O C I AT I O N S

15-17 NOVEMBER 14-16 NOVEMBER 56

National Construction Equipment Convention (NCEC) [SYDNEY SHOWGROUND, SYDNEY OLYMPIC PARK ]

Greenbuild

The inaugural NCEC is a newly designed mega show

[MCCORMICK PLACE, CHICAO, IL, USA ]

that builds on the success of three biennial state-

Greenbuild is the world’s

day hub for industry). NCEC is Australia’s first indus-

largest conference and

try-owned, multi-disciplinary, multi-event platform for

expo dedicated to green

the earth moving and infrastructure construction sec-

building. Greenbuild

tor with Hitachi, Komastu, Volvo/CJD, Toyota Materi-

International Conference

als Handling, Tutt Bryant and Clark Equipment attend-

and Expo provides the

ing this year’s show. “With the theme ‘Think Globally,

opportunity to visit with

Act Locally’ this three-day event will give you the op-

more than 750 suppliers

portunity to interact face-to-face with industry leaders.

and top manufacturers of

NCEC will form a vibrant industry hub, working with

the latest green building

major associations to create an event, for the indus-

equipment, products,

try, by the industry to conquer common challenges

services, and technology

and drive the sector forward together. With a focus on

available in today’s

infrastructure and cutting-edge technology, this is the

market.

time to get involved in this fast-paced industry.”

J U LY 2 0 1 8

based shows to make a new national event (a three-

28-30 NOVEMBER

TBC

The Buildings Show

Construction News Awards 2018

[ METRO TORONTO CONVENTION CENTRE, CANADA ]

[ TBC ]

Canada’s largest exposition, networking and edu-

The Construction News

cational event, The Buildings Show is the leader

Awards are back, cel-

in sourcing, networking and education in Canada

ebrating 22 years of

for the design, architecture, construction and real

rewarding the very best

estate communities. The Show is home to Con-

companies and indi-

struct Canada, HomeBuilder & Renovator Expo, PM

viduals in construction.

Expo, STONEX Canada, World of Concrete Pavilion.

Hundreds of global

More than 30,500 trade professionals attend the

companies with com-

show annually to discover new innovations across

bined revenues of more

the building industry and source the latest materi-

than $148bn will enter

als, products, tools and technologies from more

the Construction News

than 1,600 Canadian, US and international exhibits.

Awards to have their

Through the show’s comprehensive seminar pro-

work recognised as the

gramme, attendees can choose from 350-plus sem-

best in the infrastructure,

inars, keynotes, summits and roundtables led by a

property and residential

roster of 500-plus industry experts

sectors.

w w w. c o n s t r u c t i o n g l o b a l . c o m

57

HOLISTIC BUILDING with COMMUNITY IN MIND WRITTEN BY

OLIVIA MINNOCK PRODUCED BY

TOM VENTURO

Alan Ruth, Vice President of Facilities & Construction at New Horizon Academy, discusses the company’s growth across the US and how it continues to develop sustainable, economical and community focussed schools

NEW HORIZON ACADEMY

“Working at New Horizon Academy, where children have a safe place to grow and learn, I’m doing something that matters and will have a long-term impact on the community”

— Alan Ruth, Vice President of Facilities & Construction

60

“Working at New Horizon Academy, where

maintenance, IT and the compa-

children have a safe place to grow and learn,

ny’s 100-plus fleet. “They needed

I’m doing something that matters and will

someone to head up that national

have a long-term impact on the community.”

presence and help grow the

For Alan Ruth, Vice President of Facilities &

brand across the US. I have many

Construction, New Horizon Academy is more

different department heads who

than just a developer – it works to nurture the

report to me, and I set them up for

children and communities of the future.

the future. I started working with

The family-owned Minnesota business was

key decision-makers for the com-

founded by elementary school teacher Sue

pany, inside and out, seeing what

Dunkley who recognised the need for children

our goals were and putting all

to learn in a nurturing environment. The com-

departments on track to achieve

pany is now led by her son, CEO Chad

those goals.” He also oversees

Dunkley, who was one of the first students at a

day-to-day facilities manage-

New Horizon Academy. Since 1971, New Hori-

ment: “At all times, we’re

zon Academy has expanded across the US to

negotiating long- term contracts,

design and build bespoke, holistic school

for all services, which include:

buildings and is still growing, with 75 schools

energy, lawn care, snow removal,

in its portfolio and 12 under development.

cleaning and repairs.”

Ruth joined the business in 2014 and has brought many elements of the business

FOCUS ON LEARNING

together, overseeing a variety of departments

“Our buildings are designed

like construction/development, purchasing,

around the students,” Ruth

J U LY 2 0 1 8

USA

61

Alan Ruth has 25 years + in the Development, Construction & Facilities field with many companies including: Ryan Companies, Bally Total Fitness, Abercrombie & Fitch, CKE Restaurants, & Emerald & Diamond Foods

emphasises, adding that CEO Chad Dunkley

it’s all put into the plan of how the

works with state and federal government as

building should look and feel. We

well as the University of Minnesota, Harvard

build and install things with a set

University, Yale and many others, to ensure

of eyes of a child. Everything we

the business is focused on child development.

look at is specific for the clientele,

“We find the right environment for the chil-

such as the design of doors in our

dren from the way we build the buildings to

classrooms with finger guards so

size, classrooms, ergonomics, you name it…

no child’s fingers get pinched.” w w w. c o n s t r u c t i o n g l o b a l . c o m

NEW HORIZON ACADEMY

Caring Beyond the Classroom

62 STRATEGIC COLLABORATION

strategic savings by bringing pur-

Designing bespoke schools requires collabo-

chasing together under one roof,

ration to promote synergy. “Every project has

so to speak. “Over time, we’ve

something that creeps up so it’s about being

started to buy materials our-

ready with every team member prepared to

selves. By going straight to the

respond,” Ruth explains. “Not just internally

manufacturers, we can reduce

but externally, from ownership to people run-

costs, avoid mark-ups and basi-

ning the schools, building them and supplying

cally become our own supply

material. We’re all on the same page.” It’s also

chain. Over time, instead of get-

important that management empowers staff

ting more expensive with inflation,

to take ownership and work toward common

our buildings have slowly gone

goals. “They’re really behind the direction

down in cost because we con-

we’ve taken the different departments. I’m

tinue to buy more directly. That’s

very fortunate to have the backing of not just

why I ended up taking purchasing

the owners but my team members.”

over, to put us in the position to

In addition, Ruth has been able to make J U LY 2 0 1 8

do more of this in the future.”

USA

TECHNOLOGY TRANSFORMATION

A key ingredient for holistic building development? “Technology has of course been our friend,” says Ruth. “Each of my departments has specific software to keep projects on schedule and at cost. We send out reports weekly or monthly to share with ownership and other departments, so we have a good handle on where we’re going. Technology has done a wonderful thing for us – we have better control.” Ruth has also found that a level of independence is healthy, ensuring employees have the freedom to explore more digital initiatives. “I leave it with each department head to present me with what they feel is the best software for their department and why.”

BIM (building information modelling) software is also used, with the company’s architect having upgraded from CAD to Revit, which shows preliminary design in 3D, virtual

“ Part of the education is building efficient buildings to teach responsibility for future generations” — Alan Ruth, VP of Facilities and Construction

reality model. “Back in the day, if I showed blueprints to people who weren’t in the trade, it was hard for them to see what a room would really look like. With this new software, you can put a 3D model on a screen and walk

to Ruth. “Technology is going to

through the building, inside and out. It helps

change the way we build and

the group move ahead because there are less

make our buildings more efficient.

change orders. People can question things at

We’re going to get a better

an early stage. There’s a clearer understand-

product, and we’ll be able to

ing throughout the process.”

enjoy even greater time and

Transformation is set to continue, according

cost savings.” w w w. c o n s t r u c t i o n g l o b a l . c o m

63

75

Number of schools developed by New Horizon

64

12

Number of projects currently under development

J U LY 2 0 1 8

USA

65

w w w. c o n s t r u c t i o n g l o b a l . c o m

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Quality

Results

USA

1971 Year founded

Lighting is not just a sustainability factor but helps child development too. “There has been a lot of research on colour tuning, natural and unnatural, colours and hues, what’s best for certain activities or how different colours and ray beams help development and growth in each room.”

Classroom design varies across age ranges, but always keeps functionality in mind. In particular, it’s important to have

A SUSTAINABLE, HOLISTIC FUTURE

indoor play areas with enough

As it implements the latest technology, New

room for activities if students

Horizon Academy is seeing its buildings

can’t go outside. Even the exterior

become even greener through a sustainability

play areas are designed where

focus, from implementing skylights which

children can venture out for work

make the most of natural light, to water-saving

and play. “One of our partners,

sinks and lighting control systems, as well as

Cre8play, is a national provider

using automation to control temperature. “We

based in Minnesota that studies

also work with local utility companies to figure

exterior play areas to understand

out how we can become more efficient with-

age-appropriate playgrounds,”

out taking away from the comfort and

Ruth explains. “Like everything

functionality of the buildings,” Ruth adds.

we do, it’s for fun but also to help

“LED lights have really saved us. With the

children grow and learn. We part-

new lighting control system, we fluctuate how

nered with Cre8play to not just

much light we use to save money, and LED

get a play area you could have at

has a full range of what you can do, from col-

home, but something that means

ours to cycling on and off.”

children can learn as they play.” w w w. c o n s t r u c t i o n g l o b a l . c o m

67

NEW HORIZON ACADEMY

When You Drop Off We Pick Up

CREATE + SOLVE + ADVISE

• Architecture and Development Planning • Construction Management Consultant, Owners Representation • Zoning Appeals • Expert Service, Construction Disputes and Forensics • Designing and Building Creative Child-Friendly Environments since 1988

Proud to be working with New Horizon Academy.

CONTACT: A. PETER HILGER, AIA

Phone: 612-868-3636

Email: philger@rylaur.com

USA

“We work with local utility companies to figure out how we can become more efficient without taking away from the comfort and functionality of the buildings”

— Alan Ruth, Vice President of Facilities & Construction

“We use different materials now that meet

future. Its proudest achievement

more of the LEED Certification as we strive to

in Ruth’s book is a flagship center

become LEED certified. We’re using more

in north Minneapolis. “It’s one of

recycled materials that are safe for children

the more impoverished areas, but

like LVT (luxury vinyl tile) flooring. We’re

we built our nicest ever building

becoming wiser with the materials we use,

there for the community to rein-

which sends a good message.” Ruth adds

vest in the children. We’re

that this sustainable focus is important for

basically going into areas others

children to see. “Part of the education is build-

won’t, taking on challenges oth-

ing efficient buildings to teach responsibility

ers won’t and turning around

for future generations such as how to control

projects that the community

lighting.”

loves. That’s what I’m most

That’s just one-way New Horizon Academy

proud of.”

is focused on building communities for the

w w w. c o n s t r u c t i o n g l o b a l . c o m

69

BRINGING AGRICULTURE into the DIGITAL AGE WRITTEN BY

LAURA MULLAN PRODUCED BY

DENITRA PRICE

With smart machinery and robotics, Kuhn Krause is resolving the agriculture sector’s biggest pain points and meeting the demands of digitisation

KUHN KRAUSE

D

igitisation is transforming businesses across the globe – and the

the time savings, the agronomic

agriculture sector is no exception.

focus that we take in designing

With the world’s population mushrooming, consumer demands changing, and commodity prices becoming more volatile, the

and building our machinery,” he adds.

Looking forward, the digital

agriculture sector is being pushed beyond tra-

agriculture market is expected to

ditional business models into the digital age.

triple in size to $15bn by 2021,

With 100 years’ experience in manufactur-

according to PA Consulting.

ing farm machinery, Kuhn Krause is a melting

With this in mind, Director of

pot of traditional agricultural values and tech-

Operations, Eddie Smith, says he

nological innovation.

has seen a seismic shift in the

It is perhaps this unique perspective which has thrust the American firm into the spotlight 86

“It’s all about the profitability,

way farmers operate.

“I think we’ve seen a dynamic

as one of the leading agriculture and farm

change in the way farmers

machinery manufacturers in the market today.

approach business,” he explains.

“No matter what segment of the agricultural

“They’re no longer just trying to

industry we’re in, our mission is to build the

make a living for their families but

best equipment and deliver the best customer

are now increasingly looking

experience with that equipment,” explains

towards more technical aspects

Marketing Director Curt Davis.

of farming.

“That really comes from identifying and

“I think they’re better educated.

understanding the customer, understanding

They’re business people and they

their needs and providing the equipment that

run the farm more like a business.

solves the everyday problems many of the

They have expectations that their

farmers face with their operations.

fathers or their grandfathers

“This mindset helps us to create a differenti-

didn’t have, and so they are look-

able product in the marketplace, so that when

ing to derive value. They’re

a customer hears about our equipment they

looking for the latest and greatest

will immediately say to themselves, ‘This is the

technologies that can give them

solution I’ve been looking for’.

profitability.”

J U LY 2 0 1 8

USA

The agriculture sector is a difficult one to be in, but Davis believes technology is key to realising the market’s financial potential.

“It’s paramount to have a good experience with the equipment, but it’s also important that customers realise the value and return on their equipment investment,” he says.

“In today’s agricultural market, commodity prices are somewhat depressed. This is a worldwide situation, not just in North America, and so it’s very important for our customer to stay profitable.

“They want to invest in machinery that is going to improve their profitability and decrease their cost of investment, whether it be through time, fuel or labour.”

Whether it’s creating state-of-the-art equip-

“ It’s all about the profitability, the time savings, the agronomic focus that we take in designing and building our machinery.”

— Curt Davis, Director of Marketing and Product Management

ment for livestock feeding and bedding, tillage, planting and seeding, crop protection and more, it seems innovation runs deep at Kuhn Group.

w w w. c o n s t r u c t i o n g l o b a l . c o m

87

KUHN KRAUSE

“The sheer fact that Kuhn Krause has prospered for such a long period of time is a testament to the product and the people at the facility” — Eddie Smith, Director of Operations

88

This is clearly demonstrated by the firm’s cutting-edge manufacturing facility.

By investing in smart machines, Kuhn Krause’s technology provides operators with “instant feedback on the performance of

weld cells are helping to provide feedback, speed up operations and produce better quality products.

“With all this technology, we

machines,” says Smith, which makes the

haven’t replaced any workers,”

manufacturing process faster and more effi-

Smith continues. “It has actually

cient.

given us more flexibility with our

Meanwhile, the firm’s million-dollar investment in smart machining centres and robotic J U LY 2 0 1 8

workforce and has improved our productivity and efficiency.

USA

Kuhn – Invest in Quality 89

“The integration of technology is

standardising, sustaining and upholding

helping us make the interface

safety – the agricultural equipment firm is

between man and machine more

focusing on what matters: its products.

productive.”

Pushing its efficiency further, the

In conjunction with this, Smith also champions the company’s use of Gemba walks, to

team at Kuhn Krause has also

gain insight into what’s happening on the

implemented a clearer, lean way of

shop floor.

working.

Adhering to the 6S method of sorting, setting in order, shining,

“One of the main things we’ve done is that we set up a model area in each department,” Smith adds. w w w. c o n s t r u c t i o n g l o b a l . c o m

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USA

“When a customer hears about our equipment they will immediately say to themselves, ‘This is the solution I’ve been looking for’” — Curt Davis, Director of Marketing and Product Management “Once we validated that a process was converted and changed using

the skills and expertise of its team.

“The sheer fact that Kuhn Krause

the lean methods, then we would

has prospered for such a long

expand it to other areas in that

period of time is a testament to the

department. When we wanted to

product and the people at the facil-

change something, we always went

ity,” observes Smith.

back to the model area to change it.

“We also introduced spaghetti dia-

“I think from a manufacturing standpoint, one of the challenges

grams to reduce the flow or waste of

we’ve had is adapting to the differ-

time of material moving from point A

ent generations of workers

to point B. We had over a 40%

because today we have some

reduction in one department, in one

workers that are celebrating their

area, just by doing that.”

45th year with the firm. In some

Technology and new business

cases, we have taken our sea-

models have undoubtedly trans-

soned workers and placed them

formed the business, but when it

alongside some of the younger

comes to the success of Kuhn

workers to let them learn the new

Krause, the pair both also point to

technology. They’ve been very w w w. c o n s t r u c t i o n g l o b a l . c o m

91

KUHN KRAUSE

receptive to doing that.”

“Finding good people is always a challenge,” adds Davis. “It seems like in today’s world if you can find a good foundation of character, work aptitude and knowledge about the business, you can begin to build upon that with the specific things that they need to know for the industry and the company. It’s a constant challenge to find good people and to retain them but we’ve managed to

Over

350

92

employees work at Kuhn Krause.

achieve this.”

Tapping into the latest industry knowhow, Kuhn Krause has not only hired the best talent, it is also developing strong industry partnerships to guarantee a superior customer experience.

“For instance, one of the companies that we have an alliance with is Montag,” notes Davis.

“Montag provides a fertiliser delivery solution which we attach to our strip-till machine called the Gladiator®. Both of those machines work together to really provide good value to the customer. It delivers a whole package to the farmer. That relationship with Montag has been very instrumental

J U LY 2 0 1 8

USA

in increasing our market position

Although the company’s roots

with the customers for the strip-till

lie firmly in America, it seems

application of fertiliser placement.”

Kuhn Krause remains optimistic

Now, looking forward, the agriculture equipment firm plans to continue the company’s historic

about the future and is eyeing opportunities further afield.

“In the next decade, we plan to

legacy by embracing new and rev-

continue to grow in the North

olutionary technologies.

American sector, both in the US

“In the future, I predict we will

and Canada,” Davis says. “Glob-

continue to increase our technology

ally I see that we have many

use in all aspects of manufacturing,”

opportunities, especially in grow-

reflects Smith.

ing and developing countries

“That will allow us to have flexi-

where agriculture is vital to pro-

bility. This is important because

duce enough food for the growing

the agriculture market is cyclical,

population. Continued develop-

which means you need to able to

ment in those growing and

flex-up and flex-down your manu-

emerging countries are going to

facturing capability to continue to

be a priority for us.”

be profitable.”

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EVOBITS

Navigating the complexities of crypto mining 80

FOLLOWING A SHIFT TOWARDS HOSTING SITES AND DATA CENTRES FOR THE CRYPTO MINING WORLD, EVOBITS I.T. LOOKS SET TO CAPTURE THE EUROPEAN MARKET DALE BENTON PRODUCED BY LEWIS VAUGHAN WRITTEN BY

J U LY 2 0 1 8

EUROPE

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w w w. c o n s t r u c t i o n g l o b a l . c o m

EVOBITS

T

echnology has always been a difficult beast.

As the world continues

to become more and more defined by technological innovation, industry sectors all over the world face the challenge of navigating this complex and challenging space.

In recent years, the eyes of the world have turned towards cryptocurrency, and in turn crypto mining. More and more organisations are investing 82

money into blockchain, bitcoin and other forms of digital currencies, but this is still a relatively unknown realm.

This is where Evobits Informa-

“But last year the company evolved and Evobits IT branched into the actual mining of

tion Technology SRL comes in.

cryptocurrency itself but doing it a little dif-

Created in 2014 on the back of

ferently.”

a spike in demand for cryptocur-

Silviu has spent his entire career in the IT

rencies, Evobits IT worked

and technology space, working specifically

primarily in programming the

in programming and IT consulting. Evobits IT

systems and solutions behind

is the second company Silviu has founded,

cryptocurrencies.

the first being centred around systems pro-

“We created different crypto-

gramming before moving into the blockchain

currencies for clients and different

programming and cryptocurrency business.

software for cryptocurrency min-

Where Evobits IT intends to act differently

ers,” says Silviu C. Balaci, CEO

and disrupt this growing market is in combining

of Evobits IT.

its hosting with its software abilities, allowing

J U LY 2 0 1 8

CONSTRUCTION

“ W E’RE NOT JUST BUILDING WAREHOUSES AND THROWING A BUNCH OF GEAR IN THERE,” HE SAYS. “HOSTING CRYPTO MINERS IN A PROFESSIONAL DATA CENTRE AND ALLOWING FULL CONTROL OF THEM IS THE DIFFERENCE. WE BUILD SOME OF THE MOST EFFICIENT DATA CENTRES IN THE WORLD BY USING INNOVATIVE TECHNOLOGIES SUCH AS THE NEW INDIRECT EVAPORATIVE COOLING SYSTEM FROM VERTIV (A TECHNOLOGY USED BY BIG NAMES IN THE INDUSTRY: MICROSOFT)” — Silviu C. Balaci, CEO of Evobits

83

customers to receive full control and trans-

tures at under 65C, we have an

parency. Evobits IT builds real, physical data

average GPU temperature of

centres and hosts crypto miners within them.

under 50C and we do this while

“We’re not just building warehouses and

keeping the PUE under 1.10. We

throwing a bunch of gear in there,” he says.

also offer full miner control: our

“Hosting crypto miners in a professional data

clients decide what to mine and

centre and allowing full control of them is the

where to mine, they can even

difference. We build some of the most effi-

decide the software that they

cient data centres in the world by using

want to run. There is no other

innovative technologies such as the new Indi-

crypto mining operation that

rect Evaporative Cooling System from Vertiv

does this in the world.”

(a technology used by big names in the

Cryptocurrency is a commod-

industry: Microsoft). Where most mining

ity, and like any commodity, it’s

operations struggle to keep GPU tempera-

cyclical in nature. The company w w w. c o n s t r u c t i o n g l o b a l . c o m

behind the cloud data centers efficiency solutions innovative design

We create, design, innovate, deliver and maintain exquisite complete solutions for your data center Why INNOVA? Because we have the knowledge, experience, expertise, best certified and trained specialized personnel to: design, deliver and maintain data centers and technical rooms, based on the latest technology and offering tailored solutions for a successful project.

104-106 Stirbei Voda Street, district 1, 010119, Bucharest, Romania tel +4021 420 02 22 fax +4021 420 00 32 e-mail office@innovaengineering.ro

CONSTRUCTION

was founded off the back of a spike in cryptocurrency, but Silviu admits that the cyclical nature is something that he and Evobits IT must be prepared for.

This is where Evobits IT can work closely with clients, as this is still a growing and somewhat unknown technology. Silviu feels that people and companies are investing into cryptocurrency without understanding the technology behind it.

“Everyone cared only about the cryptocurrency side of things and the value of it,” he says. “Nobody was really interested in the technologies behind it. At Evobits IT, we work to make clients understand that there is much more to this crypto-world than just the digital coin.”

Silviu points to a number of companies that have almost redefined their strategies to incorporate blockchain or cryptocurrency, going as far as adding the two into company names in order to tap into this booming market.

This has changed how Evobits IT works

“IT’S BOTH SCARY AND BEAUTIFUL. THERE IS LITERALLY NOTHING STOPPING EVERYTHING FROM CHANGING TOMORROW BUT WE ARE WELL POSITIONED, AND THAT’S BECAUSE WE HAVE REAL DATA CENTRES AND A STRONG DEVELOPMENT TEAM BEHIND IT” — Silviu C. Balaci, CEO of Evobits

with companies. No longer is it a case of just explaining what the technology behind cryptocurrency and crypto mining is, now Evobits works with customers to help them understand that the technology is no silver bullet and it should be used when there is a clear business case.

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EVOBITS

it’s now in your company name, or strategy,” he says. “It’s just not made for that.”

As Evobits IT continues to develop the programming technology behind cryptocurrencies, currently working on a beta stage payment system for the transfer of funds, the company is significantly expanding its data centre capabilities.

Evobits IT currently has a couple of data centres finished and operational: a 1 MW facility and a highly efficient 3.5 MW facility, for a total of 4.5MW. By the end of this year, Evobits IT hopes to expand this further by adding an extra 15 MW before looking to 86

build another facility in excess of 20 to 30 MW, but this is something that Silviu admits is “further down the line”.

As with most data centres all over the world, location is king. “Location can be split into two important areas – proximity to utilities such as power stations and fibre for network connectivity,” says Silviu.

“But we also need to be located near a major city. This helps bring in a workforce and if it’s near an international airport, this opens new doors in terms of attracting clients.”

Attracting clients is crucial. Silviu notes that the cryptocurrency market is very opaque, meaning it is susceptible to scams. To this end, Evobits IT will invite potential partners and clients to its data centres in order to J U LY 2 0 1 8

FACT

Extremely efficient data centres allowing us to achieve a PUE of under 1.10.

Very low temperatures for the GPUs: an average of under 50C. Individual Miner control with auto-balancing software: if a miner goes offline, another is automatically assigned to take its place.

Highly efficient mining system: from custom BIOS that maximizes power efficiency to custom mining software that lowers “uncles rate” to under 15% (the average is over 25%)

CONSTRUCTION

dispel any fears and to highlight what the company does that no other currently claims to do. “A lot of important potential partners already visited us: nVidia, AMD, XFX, Sapphire, Gigabyte, Vertiv. When they see what we build and how we do things their tone changes completely, it simply opens a lot of doors that otherwise would have been shut,” says Silviu.

Evobits has struck a key strategic partnership with Innova Engineering SRL, a Romanian company which provides consulting, design, implementation and maintenance across all ranges of IT (hardware and software) and telecommunication equipment, turnkey data centre execution.

87

Through this partnership, in which the company has already built a 3.5 MW data centre in Romania (which is almost the entire yearly data centre market share of Romania), Evobits IT has been able to cement its status as key player in the data centre space.

“When we first started out in data centres, nobody wanted to talk to us because we had no proven experience in this market,” says Silviu.

“Everybody wanted to take advantage of us and nobody was really interested in building a long term partnership, they were just interested in short-term gains.”

“But working with Innova on our second Romanian project, everything changed. There are many challenges in what we do because w w w. c o n s t r u c t i o n g l o b a l . c o m

EVOBITS

we always operate our data centres to

is keen to note that the company is

maximum capacity, so everything needs

finely positioned should there be

to be properly planned: from cooling

a sudden shift in the volatile market

capacity to power distribution to air

of cryptocurrency.

volume. It’s extremely important to have

Silviu notes that even as a man with

partners like Innova, ones who will look

such an extensive history in the tech-

at you as a long-term partner and will

nology space, there is always an

join you along this growth journey.”

uncertainty surrounding the future

As Evobits IT looks to the future, with a number of data centre facilities already

88

of cryptocurrency.

But it’s not something he fears. “It’s

planned for construction and to come

both scary and beautiful,” he says.

online over the next few years, Silviu

“There is literally nothing stopping eve-

“BUT WORKING WITH INNOVA ON OUR SECOND ROMANIAN PROJECT, EVERYTHING CHANGED. THERE ARE MANY CHALLENGES IN WHAT WE DO BECAUSE WE ALWAYS OPERATE OUR DATA CENTRES TO MAXIMUM CAPACITY, SO EVERYTHING NEEDS TO BE PROPERLY PLANNED: FROM COOLING CAPACITY TO POWER DISTRIBUTION TO AIR VOLUME. IT’S EXTREMELY IMPORTANT TO HAVE PARTNERS LIKE INNOVA, ONES WHO WILL LOOK AT YOU AS A LONG-TERM PARTNER AND WILL JOIN YOU ALONG THIS GROWTH JOURNEY” — Silviu C. Balaci, CEO of Evobits

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CONSTRUCTION

rything from changing tomorrow

separates us from others: if something hap-

but we are well positioned, and

pened, it wouldn’t kill us and we wouldn’t put

that’s because we have real data

a lock on it and walk away. We invest more

centres and a strong develop-

today to have the security of tomorrow, no

ment team behind it.

matter what tomorrow will bring.

“If everything did crash tomor-

“Having highly efficient physical data cen-

row and cryptocurrency vanished

tres allows us to, with minimal investment,

entirely, we can turn our atten-

open up the door to another sub sector of

tions to repurposing our data

this market, and that gives us an incredible

centres into colocation hubs or

edge moving forward.”

data processing centres.

“That’s what’s key and what

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LY T A R C H I T E C T U R E

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THE AGENDA SETTER OF SOUTH AFRICAN ARCHITECTURE GUY STEENEKAMP, MANAGING DIRECTOR AT LYT ARCHITECTURE, OUTLINES HIS AND THE COMPANY’S VISION TO BUILD OUT INTO A GLOBAL INFLUENCER IN DESIGN THINKING AND POLICY WRITTEN BY

TOM WADLOW PRODUCED BY

STUART IRVING

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AFRICA

81

PWC HEAD OFFICE Photo: Tristan McLaren w w w. c o n s t r u c t i o n g l o b a l . c o m

LY T A R C H I T E C T U R E

YEAR THAT LYT ARCHITECTURE BEGAN OPERATING UNDER ITS CURRENT NAME

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AFRICA

L

YT Architecture and its team are optimists.

Despite operating in a South African construction industry, which has borne the brunt of

recent structural economic stagnation, the firm continues to deliver standout design and see its innovations come to fruition.

“With the new government in, things are definitely looking better,” Steenekamp says. “At the end of the day, the industry is driven almost as much by sentiment than it is by technical factors and sentiment is definitely on the up.

We’re looking forward to seeing greater growth.”

LYT Architecture went through a rebranding exercise in 2012, adopting its current name having previously operated as TPS.P. “We’ve gone from strength to strength,” adds Steenekamp, who involves himself heavily in the day-to-day architecture work as the firm’s principal designer.

“I think we’ve had wide market acceptance here in South Africa and created a strategy to start expanding globally, but those things take time.”

Indeed, though the majority of LYT’s work is carried out in its native country, the company does have businesses in Nigeria, Dubai and the UK. However, for Steenekamp and LYT, becoming a global influencer of design ideas and best practice better defines growth than physical geographic presence.

“People are starting to understand why the intellectual property in the design of a building pays,” he says, “and we want our clients to see how this enhances their asset – it’s not something you can see and touch, like brick or concrete.”

Old Mutual, picture: Tristan McLaren

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LY T A R C H I T E C T U R E

PWC Head office, picture: Tristan McLaren

AFRICA

“ People are starting to understand why the intellectual property in the design of a building pays, and we want our clients to see how this enhances their asset – it’s not something you can see and touch, like brick or concrete” — Guy Steenekamp, Managing Director, LYT Architecture 85

“To define Architecture – take a beautiful building complete – then take the identical site next door

carve itself a leading position in the South African market.

First is the company’s partnership

and replicate all the components

approach to work with clients. “It’s really our

of the completed building on it in

willingness to take on shared risk,”

a random pile. The two sites are

Steenekamp reveals. “We also have a com-

identical in intrinsic value,

mercial mindset, in the sense of we get what

componentry, mass and chemical

our clients are trying to do.

composition, yet the one is a home and the other is a pile of rubble.

“The difference between them is architecture.”

“A lot of people misunderstand what commercial architecture is; they think that it’s somehow qualitatively impaired. In some cases this may be true, but to think that is to misunderstand its essence. Commercial

BUILT ON FOUR USPS

architecture is simply the design of buildings

Steenekamp points to four key

that form an asset class. Like any asset,

facets that have allowed LYT to

there’s a bottom line involved. Our buildings w w w. c o n s t r u c t i o n g l o b a l . c o m

LY T A R C H I T E C T U R E

Carlos, Modeller

86

J U LY 2 0 1 8

AFRICA

need to be efficient and make money, but

LYT’s non-hierarchical struc-

they also have to look good, offer value and

ture also facilitates hands-on

amenity and be sustainable. In most cases

mentorship from the director

this presents a far more formidable chal-

level right the way down the

lenge to the designer.”

company, with a team-based

The second is an unwavering can-do

mentality meaning Steenekamp’s

attitude. “However difficult or onerous

door and everyone else’s are

the deadlines are, we will find a way to make it happen,” Steenekamp contin-

always open.

But how does LYT find the

ues. “Yes, we manage the client’s

country’s best design and archi-

expectations, but it’s never no.”

tecture talent to begin with?

Adding to this is a fun factor which helps to win repeat business – LYT prides itself on providing an enjoyable

“Every hire is hand picked,” Steenekamp states.

“For the most part, it’s word

client experience, vital in an industry

of mouth or it’s from a strong

where word of mouth is often the most

referral, either from a client or

powerful mode of marketing around.

from a colleague. Often, we recruit through universities.

CONSTRUCTIVE CULTURE

We’ll go and pick the best stu-

The final factor Steenekamp

dents and employ the ones that

describes is a culture of learning that

have the right cultural fit, which

flows through the structure of LYT.

is vital for us.”

“It’s an open door,” he says. “It’s about mentorship. We give people a lot of freedom to manage their lives, while they have to achieve their due dates and deadlines, of course.”

LYT also operates in the comparative luxury of having a readily available pool of talent to recruit from, unlike many mature markets such as the UK where

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LY T A R C H I T E C T U R E

skills shortages present major problems.

tower, does represent a fresh approach to office design in

UPWARDLY MOBILE

Johannesburg. Based in Sand-

Another nuance in South Africa is how con-

ton, the new headquarters is

struction is going against the global grain of

part of a larger precinct which

building increasingly upwards in a bid to

is still under development.

maximise space.

88

“It’s corporate office but it

This is largely for two reasons. First, South

does it very differently to most of

Africa is an overwhelmingly car-based society,

the corporate head offices you

with car parks often larger than the building

see here, which are grey glass

they are serving. Second is high interest rates,

boxes,” Steenekamp says.

which creates a need to complete projects

“That’s been a departure and it is

quicker than in other parts of the world where

a highly successful one. The way

building taller, and for longer, is more viable.

the building responds to the

However, LYT’s recent project with Old Mutual, while not comprising a high-rise

TSHWANE HOUSE Phot: Tristan McLaren J U LY 2 0 1 8

streets, articulates public space and complements this with its

AFRICA

“ For the most part, it’s word of mouth or it’s from a strong referral, either from a client or from a colleague. Often, we recruit through universities. We’ll go and pick the best students and employ the ones that have the right cultural fit, which is vital for us” — Guy Steenekamp, Managing Director, LYT Architecture

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LY T A R C H I T E C T U R E

grain and scale; it’s quite multifaceted and in some ways quite complex in its form, but it really works at an urban level.

“There are four other developable properties in the precinct, and we’ve done designs for all of them. It’s really now the waiting game. Some of them are looking quite close to beginning; others may take a little longer. Again, it’s a function of the economy.

It’s a superb site. It’s right near the biggest underground train 90

station in Johannesburg. Two million people a day arrive right there look straight at the site. It’s a fantastic opportunity for hotels, as well as commercial offices, and residences.”

Steenekamp also draws on a commercial building designed for accountancy giant PwC. A rare southern hemisphere twisting tower based in the Waterfall district of Johannesburg. PwC’s new country HQ comprises 45,000 sqm of modern offices designed to house 3,500 employees. It is also over 100m in height, a rarity for urban South Africa. “The manJ U LY 2 0 1 8

TSHWANE HOUSE Photo: Tristan McLaren

AFRICA

tra for most corporates is Fat-Flat and Walk-Up. PwC breaks this paradigm and shows how tall can work. The tower model is also infinitely more robust in taking on a second life of multi-tenancy once the primary lease-holder moves on.”

GREEN IS A GIVEN

Sustainability is another value engrained into

OLD MUTUAL Photo: Tristan McLaren

LYT’s work and for Steenekamp, designing a building with green credentials is normal.

“That’s mainstream now,” he says.

“Maybe 10 years ago it was not, but South Africa is very geared towards the Australian green star system. It’s not even a discussion as to whether we comply to those criteria or not.”

Whether it be robustness of design, ease of maintenance, using low carbon materials, sourcing locally or simply making a project economically affordable, LYT strives to deliver sustainable creativity for the widest possible demographic of buyers.

And in terms of itself, LYT must grow to ensure its own sustainable future.

Steenekamp concludes: “For us growth itself is really not a big deal, but certainly we need to grow to be sustainable. Where we really want to be is in a position of influence, and particularly with respect to policy both domestically and internationally as well.” w w w. c o n s t r u c t i o n g l o b a l . c o m

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Written by John O’Hanlon | Produced by Glen White

How Sydney Motorway Corporation is leveraging AI, analytics and the cloud to deliver vital infrastructure projects

S Y D N E Y M O T O R W AY C O R P O R AT I O N

Most companies are moving their IT to the cloud, but very few completely depart from on-premise systems. That’s why Sydney Motorway Corporation is different, agile and demonstrating the workforce of the future as well as tomorrow’s infrastructure model

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L

ike most large and growing cities, Sydney faces problems of congestion, but it seems that for a variety of reasons it is worse off than similar-sized cities globally. A report just out from the Property Council of Australia says Sydney’s brand is “better than the product”, a major reason being that it has worse congestion than San Francisco, Montreal, and Phoenix, for example.

However, Sydney is also leading the field when it comes to devising ways of keeping the city moving.

In August 2014 the New South Wales government created the Sydney Motorway Corporation (SMC), a private company with the J U LY 2 0 1 8

Shaune Rosser CIO Shaune Rosser is an information technology professional with more than 20 years’ experience in strategy development, planning and delivery of large-scale business and technology transformation initiatives. He has a strong track record of delivering results and driving efficiencies to optimise business processes and systems.

Rosser has worked across the public and private sectors in Australia and internationally, successfully leading IT mergers for government agencies, shared IT services for large government clusters and the implementation of market leading IT as-a-Service operating models. His experience in working across diverse and complex environments includes key transformation roles with NSW Health and the Commonwealth Bank of Australia, as well as consulting roles in the finance, government, university and clinical innovation sectors.

ANZ

“Our first goal was to create a commercial construct built on business outcomes as opposed to the traditional SLA model” — Shaune Rosser CIO

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POWERING AUSTRALIA’S LARGEST INFRASTRUCTURE PROJECTS

TechnologyOne delivers proven software that allows you to focus on your business, rather than the technology required to support it.

Innovate faster, reduce IT costs and transform the way your people work.

SYDNEY MOTORWAY CORPORATION PARTNERS WITH TECHNOLOGYONE TO DRIVE DIGITAL TRANSFORMATION FOR $16B INFRASTRUCTURE PROJECT Sydney Motorway Corporation (SMC) has been tasked with building and financing Australia’s largest transport infrastructure project, WestConnex, involving the widening and extending of the new M4, duplicating the new M5 and connecting the two motorways to provide a underground link that will create a free-flowing western bypass of Sydney’s CBD. Setting up a new business to manage this multi-billion-dollar project in a short timeframe meant SMC had little resources to spare on implementing the supporting business systems. It didn’t want to own or maintain the IT infrastructure required to run its business, instead opting for a zero IT footprint in-house to deliver flexibility, cost competitiveness and scalability.

Where some would see insurmountable restrictions, the team saw an opportunity to do more with less and proceeded to lay the foundation for a smarter future, opting for a Software as a Service (SaaS) solution with Australia’s largest enterprise SaaS provider, TechnologyOne. SMC’s Chief Information Officer, Shaune Rosser, said the partnership with TechnologyOne has enabled it to focus on its core business, not IT. “We didn’t want to own or maintain the software, we just wanted to be able to consume the services. We wanted to have evergreen technology, with the upgrades managed and supplied, so it’s always current,” Rosser said.

TECHNOLOGYONECORP.COM/TRANSFORM

“Our people can access the TechnologyOne software from a URL, from any location knowing that with multi-factor authentication it’s safe, secure and reliable to do so. Our people can get the information they need, where and when they need it.”

Mr Rosser said SMC went to market looking for a solution that would not only meet its IT requirements, but also its complex financial management and reporting needs.

SMC now uses TechnologyOne’s enterprise SaaS solution to deliver efficient and effective operations, covering financial management, project accounting, reporting and analysis, and contractor management.

“Since going live with TechnologyOne we’ve been able to reengineer business processes to align with best practice and operate as efficiently as possible. We’ve been able to reduce and simplify workflows, and have moved away from traditional paper-based processes to completely electronic,” Rosser said.

SMC’s Deputy CFO, Bill Hartnell, added that the business has better integrated project and financial accounting, streamlined reporting and strengthened budgeting – all essential in effectively managing the $16 billion WestConnex project.

TechnologyOne is Australia’s largest enterprise SaaS provider. Powering many of Australia’s largest infrastructure projects, the enterprise SaaS solution is available on any device, anywhere, at any time.

S Y D N E Y M O T O R W AY C O R P O R AT I O N

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brief of investing and financing major road projects – in particular the new company was commissioned by the NSW Roads and Maritime Services to deliver and finance WestConnex.

As Australia’s largest transport infrastructure project, the A$16.8bn WestConnex project will play a crucial role in supporting the city’s expected population growth and will get Sydney moving again.

WestConnex will be the central spine of Sydney’s motorway network, providing a long overdue underground link between the M4 and M5, creating a seamless motorway without traffic lights.

New M4 tunnelling

J U LY 2 0 1 8

At around 30km in length, WestConnex comprises six projects: the M4 Widening (completed 2017); the M4 East (opening 2019); the upgrade of the King Georges Road Interchange (opened December 2017); the New M5 (open to traffic in early 2020) and the M4-M5 Link which will be delivered in two stages, the mainline tunnels and the Rozelle Interchange and Iron Cove Link, with the entire scheme completed in 2023.

WestConnex is a critical part of Sydney’s integrated transport solutions to tackle congestion

ANZ

and increase productivity and will go a long way to catch the Sydney product up with the brand.

ASSET LIGHT, DELIVERY STRONG

So, SMC has been, and is, one very busy company. Spinning it out as a separate entity signalled a desire to deliver these projects in a different, non-traditional, agile way. Clearly the key to this would be how ready it was to use the best available IT systems, and adopt them as and when they were developed. To deliver this vision SMC recruited a suitably young and enthusiastic CIO. Shaune Rosser has more than 20 years of achievement

behind him but this was his first CIO appointment, so it says much that he was named in the 2017 CIO50 Awards as one of Australia’s top 50 technology and digital chiefs who are influencing rapid technologydriven change and innovation across their organisations.

Unencumbered by the usual burden of legacy systems, he was not about to acquire any. SMC has no IT assets of its own, and has invested zero dollars making it, which Rosser thinks, is unique globally. It was a green field (how many CIOs must envy him) and he

‘The Workforce of the Future’ Sydney Motorway Corporation - Shaune Rosser CIO

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was able to establish a 100% as-aservice model for the company.

“That gives us the flexibility to ramp up and ramp down as the business demands, and that is the beauty of system where we simply consume all of our services, bar none.”

The model means that the business is flexible both in systems and in people. He doesn’t need a big team to manage the projects, but can bring creative specialists and highly skilled data analysts as they are required. “It’s the workforce of the future; a contingent workforce.

We have embedded skilled people in the functional teams too.” This results in a collaborative relationship between IT and business units like finance, operations and HR: it also fits more easily than might be expected with a business whose core skills are engineering, planning and construction. In this business they’re well used to being part of a ‘contingent workforce’, Rosser says. They like people to come in, get their feet on the ground quickly, deliver the goods.

It’s also easier for the people in SMC and its contractors to access

“ It’s the workforce of the future; a contingent workforce” — Shaune Rosser CIO

111

data and documents in a cloud or ‘Technology One’ environment.

Microsoft tools play a big part in delivering this through Enterprise Mobility Security and Office 365 in a solution developed in partnership with local IT systems experts. This, along with other tools from the Azure suite and SharePoint, manages mobile apps and devices while safeguarding corporate data, allowing secure collaboration. It also enables virtualisation programs.

Centrally managing access and security has also ensured the w w w. c o n s t r u c t i o n g l o b a l . c o m

S Y D N E Y M O T O R W AY C O R P O R AT I O N

New M4 - paving

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IT department is freed from tackling end user device issues. Through the as-a-service model, Rosser has achieved spectacular optimisation of the IT service desk, responding to and resolving 100% of requests within the stringent parameters set down in the agreed service level agreements (SLAs). “This was our first goal – to create a commercial construct built on business outcomes as opposed to the traditional SLA model. If I have an outage at 3.00am on a Sunday there’s probably time to resolve it but at 9.00 on a Monday it’s a different matter.

J U LY 2 0 1 8

We may have sound contracts but if everybody is not collaborating we have real problems. It’s this commercial construct that allows all our partners to work very well together and it has maintained that operational excellence. We have made great strides in cost effectiveness but it’s also about mobilising the business and making sure it’s always available.”

However, before the basic architecture could be constructed, business critical data and records had to be captured. When SMC

ANZ

New M4 - paving

113

was set up, all the data it was going to need, the financial information and the HR records were embedded within the SAP environment used by government departments. “We had to transfer those data assets and migrate our email systems in a very short space of time,” he explains. “Initially we had to separate our data and information within the existing government departments, then extract them and move them to the new business.”

The as-a-service system has enabled SMC to create an evergreen environment in which all of its services

are constantly updated and patched (Rosser offers the analogy of one’s smartphone) to make sure the business is always using the latest and greatest and most mature version of the software.

WELCOME TO THE SMART NEW WORLD

A recent independent assessment confirmed that SMC’s operating model gives the optimum balance between cost control and efficiency. “One advantage is that we can quickly shrink our head w w w. c o n s t r u c t i o n g l o b a l . c o m

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ANZ

count and with it our costs,” Rosser says. “Again, if we want to implement new capabilities we are quickly able to deploy them. And we can be strategically focused rather than operationally. That is where we start talking about AI and machine learning and predictive analytics and building a digital engineering capability.”

The standard methodology for making a business case by PowerPoint is giving way to AI and predictive analytics, and Rosser wants SMC to be the leader in technology and innovation to create new opportunities and business optimisation. He understands that people can be wary of adopting new methods, but finds that once the value of those outcomes is explained, and how they enable a knowledge-based workforce to focus on the tasks that they need to be doing, they soon become as enthusiastic as he is.

Building the world’s longest fourlane tunnel for the New M5 provides

a good illustration. It’s unusual in tunnelling but developing an intelligent 3D model in this case will lead to more efficient planning, design and construction.

“It shows how it will look and how it will perform,” Rosser adds. “It gives a foundation for our future capabilities too, and things like design reviews, safety training; and also provision for training to ensure emergency readiness. With this 3D model people can start preparing, visualising and understanding the asset from an operational perspective.

Then there’s maintenance training and planning so when they come to do it for real a lot of time will be saved.”

A ‘digital twin’ of the motorway can encompass trillions of potential scenarios. SMC is creating a 3D replica model of the entire asset that will be invaluable for managing the motorway and predicting how it will perform in

Year founded

2014

w w w. c o n s t r u c t i o n g l o b a l . c o m

115

S Y D N E Y M O T O R W AY C O R P O R AT I O N

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New M5 - Tunnelling

any permutation of situations. Apart from its obvious asset management advantage, its very existence attracts the workforce of the future, the best young talent who would love to work in this digital environment.

THE NEW GENERATION

At this point Rosser introduces J U LY 2 0 1 8

another passion of his – leveraging the power of technology entrepreneurs. “I think we need to look outside the organisation and complement our classical partners by teaming with high calibre startups that are leading technology innovation. In my experience the key to success

ANZ

“We can quickly shrink our head count and with it our costs” — Shaune Rosser, CIO

is to step back and let them do what they are really good at. They are hungry, ambitious and bring a contagious sense of energy and excitement to the business.”

This is one reason he is keen to partner, at the earliest opportunity, with technology startups. One example is Sydney-based AI specialist Elula,

which was chosen to scope and develop a number of AI concepts, a business made up of some very bright people. “Startups like Elula are nimble, they can meet our business needs and they are very different from our traditional partners. We get these people in because they think w w w. c o n s t r u c t i o n g l o b a l . c o m

117

There are currently 20 roadheaders digging the New M5 tunnels

118

J U LY 2 0 1 8

ANZ

very differently and bring a real sense of excitement into the business as a whole.

They spot opportunities and possibilities but, more importantly, are quickly able to prototype these faster than you could normally expect to create a business case.�

It is significant that Rosser has no wish to hold all the reins himself but would rather share control with specialists, whether in engineering, or finance, or indeed any aspect of IT. One of the most valued compliments he has been paid was from a colleague who told him how much his approach was appreciated in the business: a less prescriptive approach where people are trusted and empowered through the change process and colleagues are encouraged to do what they do best.

SMC is going to change – a controlling interest will soon be sold by its government owners to investors. After one of the biggest global infrastructure acquisitions, the new owners will have the right to own and operate the motorway and then perhaps position it to take on further projects.

Whatever happens after 2023 when WestConnex is a reality, the capabilities of this uniquely capable organisation will surely attract the attention of infrastructure developers around the world.

w w w. c o n s t r u c t i o n g l o b a l . c o m

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HOW

BEST PRACTICE PROCUREMENT IS DRIVING GROWTH AT CUSHMAN & WAKEFIELD

Cushman & Wakefield, following a major merger, is reimagining its global business to reflect the depth and reach of its property management portfolio, and supply chain transformation has been crucial to this process Written by John O’Hanlon Produced by Glen White

C U S H M A N & W A K E F I E L D A PA C

T

122

he built environment is a great metaphor for globalisation. It’s getting axiomatic to say that the great cities of the world are becoming more alike, and that if you were to be dumped at random in any one of them the buildings alone would not be a sufficient clue to where you were.

Populations are migrating to these environments because this is where the industry, commerce and housing is all concentrated and as a result, cities are getting larger, sometimes exponentially as populations explode.

Global businesses have one thing in common – they need premises, offices, factories or shops. Another thing is that, totally dependent as they are on getting the working environment right, securing and maintaining and managing those premises is very unlikely to be their core business. They universally resort to the services of a specialist to source, negotiate and eventually manage their premises, whether these are rented, leased or owned.

It was in 1917 that J Clydesdale Cushman and Bernard Wakefield went into the real estate business together in New York. A measure of its success is the number of times it has been acquired by J U LY 2 0 1 8

larger groups – most recently in 2015 merging with another long-established global real estate services provider DTZ, backed by the privateequity giant TPG to create a company in contention to become the world’s largest company in its space. The strength of the Cushman & Wakefield brand is recognised in its adoption as the name of the new entity, which has an annual turnover of more than $6bn and some 45,000 employees. The year following the merger, 2016, saw the company transact over $191bn in deals and today it has a total of around 4.3bn sq ft of commercial property under management.

Cushman & Wakefield’s clients include many if not most of the biggest global businesses, including the likes of Unilever, Nokia, Lego, Coca-Cola, Nomura, Zurich Insurance, Rolls-Royce or Shell Oil (for whom Cushman & Wakefield negotiated the largest office space lease in the world in 2011). It’s also a truism to state that companies like this would not place a business-critical asset in the hands of a firm they did not trust implicitly.

S U P P LY C H A I N

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S U P P LY C H A I N

TRANSFORMATION

BIO

FUNDAMENTALS

The firm has a global policy, delivered through offices in 70 countries divided into major regions. Each of these offers nine core services in 21 sectors from airports to technology. Clearly the importance of each of these sectors will vary depending on the region, but all of them are well represented in the Asia/Pacific (APAC) business, which covers the burgeoning aspirations of India and Vietnam as well as the mature markets of Singapore and Australia and New Zealand (ANZ).

The merger with DTZ presented an attractive opportunity to Stuart Smith,

Stuart Smith

Chief Procurement Officer – APAC

Stuart Smith is an executive manager and project director offering proven success realising strategically important mandates for multibilliondollar businesses. He leverages a diverse, international career history that spans procurement, property and facilities management, organisationwide transformation and largescale program management 125 to establish and implement effective operating models for future state success.

a procurement professional with more than 15 years’ experience in property supply chain leadership, when he was appointed to the job of Chief Procure-

was also very interested in the own-

ment Officer (CPO) APAC, based at

ership structure,” Smith says.

Cushman & Wakefield’s Melbourne

“Being owned by a private equity

office. His role is to lead ANZ in pro-

firm meant that the whole organisa-

curement capability development as

tion, not just procurement, was

well as integrating APAC opportunities

going through a transformation and

as part of the company’s unified

a culture change. I could see that

regional programme of procurement

procurement would be a big part of

initiatives and maturing category strat-

that: I was keen to see how I could

egies. It was a huge opportunity to

contribute to that journey.”

overlook a very large regional spend. “I

The company’s brand reputation w w w. c o n s t r u c t i o n g l o b a l . c o m

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S U P P LY C H A I N

and relationships depend on the pro-

expectations, transferred up and

cesses and partnerships it manages

down the supply chain, is where I

throughout its supply chain. “We see our

want procurement to go.” Lever-

vendors as strategic partners to our own

aging people, processes and

success,” says Smith, as he introduces

systems, aligned with Cushman &

the transformation he is leading, with

Wakefield corporate policy, is the

enthusiastic support from the APAC

way to achieve this, he says.

leadership and in line with global strategic goals. “This is about more than

DIGITISING CORE

saving money. It is about trying to line up

PROCESSES

functionality with company strategy, as

Technology is the backbone of

an integral part of our clients’ success. If

efficiency in our times. While

we don’t manage our vendors well and

outputs and IP remain in the hands

help them understand what we are trying

of the teams, technology is what

to achieve then the outcome is going to

drives the process. Cushman

be detrimental to us. Seamlessness of

& Wakefield’s global intranet is

w w w. c o n s t r u c t i o n g l o b a l . c o m

127

C U S H M A N & W A K E F I E L D A PA C

Cushman & Wakefield Australia: Be What’s Next

128

a powerful platform that carries all of the

on refining our panel agree-

templates, vendor registration and compli-

ments. To do that we need to

ance documents and other tools that help

give our category leads band-

to automate processes that used to

width. The account procurement

happen manually.

teams can deliver client expec-

Smith obtained permission to replicate that

tations in the field while our

portal, “Advantage” in the Australia network:

category strategy teams man-

“I wanted to find an effective means of com-

age the whole client portfolio /

munication to save our team being disrupted

vendor relationship. The tech-

by phone calls and emails on a regular basis

nology advantage was key to the

with the same question.

separation of roles, allowing our

“The team is now able to focus on the delivery of new outputs and the develop-

people to work more creatively.”

Spend cube analysis is

ment of new tools and products and

another key enabling technology.

commercial outcomes. I want them to be

This brings visibility to complex

focused on developing vendor relationships

client requirements and expecta-

J U LY 2 0 1 8

STUART SMITH’S TOP TIPS FORTRANSFORMATION 1. Discovery and preparation Don’t rush, particularly if you joined an organisation looking for a ‘transformation’. What does the transformation mean to the various staff, team, vendors, executive and other stakeholders. Most likely everyone will refer to outputs or KPIs of the function. These are consequences of transformation, therefore your role must be to identify gaps and address opportunities in the fundamental governances and foundation operating model, that will in-turn result in those desired consequences. If you approach a Transformation transfixed on savings or speed to delivery or client relationship scores, then you will likely have short term achievement but with volatile results, and inability to sustain the change.

2. Balanced and rounded Your transformation Journey, will comprise many initiatives, each one chipping away at the enormity of the project, and providing manageable pieces for each person to Innovate, own and deliver. Most will be inter-related to other initiatives, and so coordination across initiatives by a formal program is critical. When identifying the initiatives, you need to ensure you have captured capability pillars of people, process and systems to have a rounded and holistic transformation journey.

3. People - innovation, ownership and delivery You might be the lead of the transformation Journey, but its success rests in both the people actioning initiatives, and people accepting the change. You will need to achieve both actioning and accepting the journey, by entrusting and empowering the team to be their own drivers of the journey. You must inspire them to innovate. You must encourage them to be brave to own their initiatives of the journey. You must hold to account the delivery to the standards upon which the next/future initiatives are able to rely on for their own success.

4. Simplified objectives, with manageable pieces The objective of your transformation Journey needs to be framed in a way which is universally understood and believed, not just by expertise in your function, but by the entire stakeholder group to the journey and its outcomes.

The idea being to agree the objective, but quickly be able to articulate the journey by a series of initiatives that manage the improvements needed in each pillar (people, process, systems), and have a manageable timeframe to each initiative’s completion.

5. Don’t forget BAU All too often the journey is more enticing than business-as-usual (BAU). It’s exciting, innovation, the buzz topic… but BAU cannot suffer. The journey needs to result in an improvement, but not on the basis of losing further ground on BAU performance.

129

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tions, allowing effective contract life

ing that objective to the business

cycle management and integration with

and the team, and then breaking

the J D Edwards ERP platform. There’s

that journey down into manageable

plenty of data available fed back from

phases.” Policies and procedure

financial and operational communica-

for APAC were, however, decided

tion in the field, but many systems still sit

in conjunction with the global

in isolation, Smith feels: analytics draw

teams and the executive leaders of

these together. He gives a simple exam-

the business worldwide. Smith’s

ple: “It’s nearly impossible to compare,

leadership role included making

when asked, our rate per square metre

sure that his team had

against a benchmark

ownership of the jour-

figure without linking

ney, were clear about

commercial with opera-

the objectives and

tional performance. No current system does that but without that link you can’t benchmark relia-

Year founded

1917

that each of the three pillars, (People, Process, and Technology / Systems) advanced

bly.” Benchmarking

hand in hand, at the

client commercial per-

same pace.

formance against

The ‘bite-sized’ approach proved

varying scopes of works is an as yet

effective, for example when consid-

uncracked nut but he has it in his sights.

ering procedures: “We took our large procedures document and

THE JOURNEY

broke it down into a user-friendly

When Smith came in to lead APAC in

form both for ourselves and for our

2017, he found a procurement team

stakeholders.” Getting the technol-

with a strong desire to be at the centre

ogy in place to support these

of the change process but without

changes is a work in progress,

a clear idea of the corporate goals. “My

though advances have been made.

role was to bridge the gap by directing

A whole new system whereby ven-

people towards the objective, articulat-

dors manage their improvement w w w. c o n s t r u c t i o n g l o b a l . c o m

131

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S U P P LY C H A I N

THE CUSHMAN & WAKEFIELD ADVANTAGE:

• Consistent delivery across multi-market client portfolios • Timely delivery of value conclusions • Compliance with financial regulatory requirements • Valuations based on access to constantly updated market data

and compliance via Rapid Global, an

whose services could be met by our

Adelaide-based partner, is in place.

strategic panel partners.

Compliance monitoring had been a big

The creation of panels made up

issue, with some vendors, particularity

of vendors with whom Cushman &

those used less frequently, not keeping

Wakefield has a strategic relation-

the necessary registrations and licences

ship in each of its 21 major

up to date. “We are looking at new tools

categories has driven further value.

to take up the next evolution of Rapid

Cleaning, for example, is one of the

Global and have reinvigorated our inter-

largest categories. “We have

nal compliance committee,” Smith says.

around 230 cleaning organisations:

The results so far have seen compli-

our strategic category panel for

ance performance improve by 35% over

cleaning now has no more than 15.

the last six months alone. Another posi-

Our panel agreements are more

tive outcome was reducing the entire

than just commercial contracts –

ANZ vendor base by 25% by removing

they focus more on driving value,

those suppliers whose compliance lev-

for us as well as for the clients.”

els had been identified as wanting, and

Standardised service level agreew w w. c o n s t r u c t i o n g l o b a l . c o m

133

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S U P P LY C H A I N

ments (SLAs) and KPIs, not focused purely on operations but the breadth of service delivery attributes, (saftety,

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finance, risk…..), and ensure we have available agreed standardised scopes of work. All C&W staff have access through the Advantage portal to all the templates and standards they need,

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field has their interests at heart.

dures on how to use these resources effectively. This helps ensure that no service parameters are missed, and as a consequence the clients are secure in the knowledge that Cushman & WakeThis drives competitiveness. “Many of our competitors don’t have that fully integrated supply chain procurement model,” explains Smith. “They are expediting the requirements of the client to

We listen, question and act, forging partnerships built on open communication and trust.

the vendor and back again with no real

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sophistication in defining the scope of works, and missing the opportunity each layer in the Supply Chain, including our expert teams and integrated vendors.” Vendors are empowered to suggest improvements, and clients are able to manage their own expectations, he adds. “Some of our clients are large enough to have dedicated procurement w w w. c o n s t r u c t i o n g l o b a l . c o m

135

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S U P P LY C H A I N

resources, and at larger clients we have embedded Cushman & Wakefield procurement specialists and managers. But we have an obligation to ensure that our strategy and category value offering works for largest through to the smallest clients. As the client accounts get smaller the need for an individual dedicated resource reduces, so we have a floating team who handle multiple accounts to ensure they have available direct access to our panel vendors for their own procured services.”

LOCAL SOURCING TO LARGE CLIENTS

‘Think global and act local’ is

“ MY ROLE WAS TO BRIDGE THE GAP BY DIRECTING PEOPLE TOWARDS THE OBJECTIVE, ARTICULATING THAT OBJECTIVE TO THE BUSINESS AND THE TEAM, AND THEN BREAKING THAT JOURNEY DOWN INTO MANAGEABLE PHASES” 137 — Stuart Smith Chief Procurement Officer – APAC

nowhere more important a mantra than in APAC. It’s a critical part of Cushman & Wakefield strategy to support indigenous businesses. At the end of 2017 the company

approximately $25mn with indige-

launched its Reconciliation Action

nous businesses across its supply

Plan (RAP). This pledged to provide

chain, and now Smith is determined

employment and training opportuni-

to go deeper. In 2017 he made a

ties, build community awareness, and

presentation at the annual confer-

facilitate collaboration with Aboriginal

ence of Supply Nation, Australia’s

and Torres Strait Islander Australians.

leading diversity organisation,

Since 2015, Cushman & Wakefield, in

exploring how indigenous busi-

partnership with its clients, has spent

nesses might evolve and what they w w w. c o n s t r u c t i o n g l o b a l . c o m

C U S H M A N & W A K E F I E L D A PA C

should consider in their tendering pro-

ment category panel, we then

cesses. “Our indigenous procurement

engage with Supply Nation and

policy is a supply chain promise to indig-

those larger industry representative

enous communities nationwide,” he says.

bodies to turn-key solutions in this

At least four of the 15 organisations we mentioned earlier in Cushman &

Smith started by dropping some

Wakefield’s cleaning category panel are

big names. Cushman & Wakefield

certified by Supply Nation as bona fide

has just signed up a major regional

indigenous-owned enterprises. Com-

mining corporation to

panies such as ARA

it’s client portfolio, but

Property Services,

what is different about

founded in 1994, sit alongside equally well-

43,000

established cleaning 138

alignment.”

firms as GJK Facilities

Number of employees at

that is the regional operating model of this client, which before the merger might have

on this panel. His aim is

been difficult to

to achieve an equiva-

accommodate. “We

lent level of

have a procurement

representation on each

manager in Australia who is liaising

of the category panels.

our APAC sister companies in

Firms that are too small to make the

development of the Client pro-

panels on their own still participate

gramme of procurement initiatives

through structured relationships with

to achieve contracting model they

major indigenous business’s and facilita-

want,” Smith explains.

tors like Supply Nation. “We have

“The challenge is to deliver com-

separate indigenous panels,” Smith says.

mercial benefit and consistent

“They are not category specific, but

performance, not just across Aus-

where a client wants to use an indigenous

tralia but across the Asia Pacific

organisation across multiple services or

region. Having an integrated APAC

on a consolidated site model, for which

model is a fundamental benefit of

we can’t quite see a place in a procure-

our transformation journey. We are

J U LY 2 0 1 8

S U P P LY C H A I N

“ I WANT TO START BUILDING STRONGER RELATIONSHIPS BETWEEN THE SENIOR LEADERSHIP TEAMS ACROSS THE REGION” — Stuart Smith Chief Procurement Officer – APAC

no longer talking of countries as silos,

30% by increasing the strength of

but engaging with a large client to lever-

strategic relationships. Adoption

age our categories and operating

and engagement of our 220 panel

model.” The deal is setting a benchmark,

vendors is due to grow by 65%, and

he adds. From this year on, more clients

Smith believes this will be

will be coming on board to take advan-

exceeded. “These are the key tar-

tage of Cushman & Wakefield’s APAC

gets for ANZ and more broadly. We

operating model, delivering consistent

have a very good team in ANZ and

services, tools, vendor strategies and

an excellent relationship with the

category strategies.

country procurement leads. I want

In this encouraging environment Smith

to start building stronger relation-

is confident that his teams will be able to

ships between the senior leadership

achieve further savings in the supply

teams across the region and drive

chain over and above the 67% year-on-

consistent integrated operating

year increase they managed last year.

model, standards in scopes of work,

Indigenous engagement will double. The

consistent SLAs and KPIs.”

vendor tail will be reduced by a further w w w. c o n s t r u c t i o n g l o b a l . c o m

139