Autumn 2014 Consulting Matters

AUTUMN 2014

Digital Economy

Taking leadership in a digital economy

Smarter mobility

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Consulting Matters

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CONTENTS Frontiers of planning

38 Smarter mobility

26

1 Bligh Street, Sydney Industry updates

Features

Does your diversity program measure up?

Industry updates

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1 Bligh Street, Sydney

26

Consult Australia staff appointments

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Taking leadership in a digital economy

34

Positioning Australia for big data

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The digital industrial change: Are you ready to throw away the rulebook?

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Frontier of planning: online engagement linking their digital worlds to ours

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BIM—offering a future in the digital economy

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Smarter mobility

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What’s happening in Consult Australia From the President

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From the CEO

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Meet the new Consult Australia President and members of the board 10

51

Our industry

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Australia’s infrastructure

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The Business Value of BIM in Australia and New Zealand

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Proportionate liability— movement, finally

Protecting your business

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Labour Market Testing

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Going overseas?

Insurance cover in overseas jurisdictions

State Division updates

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44

Business essentials Creating a winning website

48

Corporate social responsibility The Village Project

Consult Australia life members

Developing industry and professionals in Northern Australia 24

40

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Scanning new horizons Understanding terrestrial laser scanning

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Industry comment Vision without action can change the world

96

Integrated solutions for the built environment

54

National registration

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Building a better future

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Consulting Matters

Industry updates

Industry updates NEW APPOINTMENTS

New Buchan Group CEO

Jamie Shelton appointed Chairman

The Buchan Group has a new chief executive, David Martin who will play a key role in developing an international business structure through Buchan’s Melbourne, Shanghai, London and Dubai offices. He has more than 24 years of industry experience in the manufacturing, engineering and construction sectors.

The National Engineering Registration Board (NERB) has welcomed Consult Australia’s immediate past president, Jamie Shelton as the new Chair after having already served on the Board for more than four years. Read Jamie’s industry comment on National Registration on page 56.

Engineered moves at Norman Disney & Young (NDY) Stuart Fowler (left) has been promoted from Australian regional director to NDY chief operating officer and will be responsible for the line management of UK and NZ regional directors and all Australian office managers. After four years leading NDY’s Mission Critical offering for the Australasian region, NDY director Rowan Peck has relocated and will lead the firm’s ACT operations. Sydney based NDY director, Jonathan Price now heads up NDY’s Mission Critical market sector.

WGE: illuminating growth with specialist lighting designer hire Wood & Grieve Engineers (WGE) has appointed specialist lighting designer Dave Anderson to spearhead the newly established specialist lighting discipline. Dave joins WGE with over 12 years of experience in the industry. He has worked on a number of high profile projects including the Sydney Opera House, Westfield Stratford City and Highpoint Shopping Centre (Melbourne).

New CEO for Australian Institute of Landscape Architects (AILA) In their commitment to uniting the profession and advocating for a better built and natural environment within Australia, the AILA has appointed a new CEO, Shahana McKenzie and a new Board (National Council). Shahana will join National President, Mark Frisby and National Council members: Andrew Turnbull, Shaun Walsh, Daniel Bennett, Suzanne Moulis, Jerry de Gryse, Fiona Eddleston, Greg Grabasch, Liesl Malan and Julie Marler.

practices. Woods Bagot retained its spot as the top Australian firm jumping from 17 to seventh this year. Hassell scored number 32, HBO+EMTB was 43rd and Cox Architecture sat at 46. The Buchan Group jumped to rank number 60, with Sinclair Knight Merz (SKM) and Thomson Adsett Architects, ranked 76 and 89 respectively.

Adelaide desalination plant wins global sustainability award One of SMEC’s major projects, the Adelaide Desalination Plant, has won the 2013 Green Project Manager (GPM) Global Sustainability Project of the Year Award. The $1.83 billion Plant was built for SA Water and can deliver 100GL of drinkable water per annum: half of Adelaide’s annual water supply. The Plant is powered by 100 per cent accredited renewable green energy sources within South Australia.

Sydney playground for ‘all abilities’ wins awards

MAJOR WINS Aussie firms make World Architecture 100 Seven Australian firms have scored spots on Building Design UK’s annual list of the world’s biggest architecture

Livvi’s Place - Roly Poly Path: This undulating path creates exciting changes in level for wheelchair users and forms a gentle embankment that allows children of all abilities to play alongside each other in many different ways. Photo courtesy of AECOM.

Livvi’s Place—a playground in north-western Sydney that caters for children with a range of special needs—has claimed three awards for its contribution to public space. Designed in-part by AECOM, the playground was awarded the top spot in the Sydney Morning Herald’s People’s Choice Award, and has also received the NSW Minister for Planning and Infrastructure’s Sydney Greenspace Award and the NSW Premier’s Choice Award.

Livvi’s Place - The labyrinth: This space has been designed to stimulate the senses in many ways, through playfully carved totem poles, whimsical sculptural elements and a series of looping paths through sensory gardens. Photo courtesy of AECOM.

Industry updates

North West Rail Link (NWRL) The North West Rail Link’s Surface and Viaducts Contract (SVC)—the second of three contracts to be awarded as part of the $8.3 billion NWRL project—has gone to the Impregilo-Salini joint venture.

Hyder Consulting, in association with APP Corporation, have been appointed by Transport for NSW as Independent Certifier to the contract and SMEC Australia—a member of the joint venture—has been awarded a design and construct contract for the skytrain section of the project.

Consulting Matters

Engineering Aid Australia helps Indigenous secondary students reach new heights

Editor Gillian O’Young

Airport Link design a global success The Parsons Brinckerhoff and Arup (PBA) joint venture has been awarded the 2013 Australian Engineering Sir William Hudson Award and the International Road Federation’s (IRF) 2013 Global Road Achievement Award (GRAA) for the design of the combined Airport Link, Northern Busway (Windsor to Kedron) and Airport Roundabout Upgrade projects in Brisbane.

INDUSTRY UPDATES

Engineering Aid Sydney Harbour Bridge Climb.

Photo courtesy of Hyder Consulting.

Chief Executive Officer

In January 2014, Engineering Aid Australia conducted the 17th Indigenous Australian Engineering Summer School, which included a week of activities including hosted site visits and the chance for students to interact with engineers and prospective employers to explore the possibilities a tertiary education and a career in engineering offers. Hyder Consulting and BridgeClimb Australia sponsored the Sydney Harbour Bridge climb activity, which focused on structural engineering.

Gensler seeks local growth by going global 2014 BRW Client Choice Awards

One of the world’s biggest architecture firms Gensler—with over 4,000 staff worldwide— opened its first Australian office in Sydney in January 2014. The Sydney office is being headed up by the founder of local design studio 2d3dcreative, Simon Trude—a former employee in Gensler’s New York office.

SLR Consulting acquires North American acoustics company SLR Consulting has strengthened its global offering with the acquisition of North American acoustics firm HFP Acoustical Consultants, which has offices in Houston, Texas, and Calgary (Canada). HFP provides acoustics and noise control consulting services to a broad range of clients in the energy, industry, planning and development, infrastructure, mining and minerals and waste management sectors.

President Matthew Harris

CLIENT CHOICE AWARDS Consult Australia member firms have excelled in the 2014 BRW Client Choice Awards. Congratulations to all member firms who received recognition across a number of award categories, including: Douglas Partners, WSP Group, Arup, Parsons Brinckerhoff, Sinclair Knight Merz, pitt&sherry, Golder Associates, URS, Aurecon, Norman Disney & Young, AECOM and GHD.

Megan Motto

Operations Manager / EA to the CEO Sarah Lutton

Director of Membership Julia Lemercier

Director of Marketing & Services Kisanne Dulin

Chief Finance Officer Pete Constantinidis

Director of Policy & Government Relations Jonathan Cartledge

Senior Advisor, Policy & Government Relations Jonathan Russell

Senior Advisor, Policy & Government Relations Robin Schuck

National Events Manager Alexandra Hopper

Corporate Designer Voltaire Corpuz

National Manager Professional Development Ezra Atik

DIBP outreach officer Satinder Pasricha

Editorial submissions gillian@consultaustralia.com.au

Advertising enquiries info@consultaustralia.com.au Consulting Matters is produced by Consult Australia. Phone: (02) 9922 4711.

Website: www.consultaustralia.com.au

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Consulting Matters

Industry updates

Consult Australia staff appointments Director of Marketing & Services Kisanne Dulin We are pleased to welcome Kisanne Dulin to Consult Australia as Director of Marketing & Services. She brings with her almost 20 years’ experience in marketing, business development and client service roles within professional services—including work with several member firms .

Kisanne will oversee all aspects of Consult Australia’s member services offering and will work on the Association’s strategic positioning. All national marketing, public relations, events, professional development and sponsorship activities will also fall within her remit.

Kisanne can be contacted on (02) 8252 6718 or via email to kisanne@consultaustralia.com.au.

Welcome new member firms Consult Australia welcomes new member firms: Baker Rossow Consulting Engineers Aura Urban and Regional Alliance Beverage and Brewing Consulting Inside Eagles Bridge Design HRL Imports Lucius Pitkin Inc, Consulting Engineers

ACT Manager Kevin Keith Fifteen years of experience in media-related roles in Britain combined with a degree in chartered surveying and masters degree in journalism puts new ACT Manager, Kevin Keith in a good position to bring new life to Consult Australia’s ACT Division.

Kevin’s varied experience will bring a new perspective to the Division, where he will be responsible for all ACT activities including policy and advocacy, government relations, media, member events, engagement and the young professional’s network, FutureNet. ACT members are invited to contact Kevin via email at kevin@consultaustralia.com.au.

Director of Membership Julia Lemercier Consult Australia is pleased to welcome Julia Lemercier to her new role with the Association—Director of Membership.

In this role Julia will be responsible for assisting potential members to improve their business operations through Consult Australia membership. Julia is very familiar with the industry having worked for Consult Australia for 9.5 years; with her first two years as NSW & ACT State Manager and since in her capacity as Chief Operating Officer.

Julia can be contacted via email at julia@consultaustralia.com.au.

Industry comments What do you think is the most pressing issue our industry is today facing? Submit an industry comment to Consulting Matters by sending an email to our Editor at gillian@ consultaustralia.com.au. You can speak about any subject matter you wish. Write about issues you feel are important to the consulting industry—government policy, business issues, opinions on consulting related topics, changes you feel the industry should make or anything in between!

Industry updates

Consulting Matters

INDUSTRY CONTRIBUTORS The Hon Jamie Briggs - Assistant Minister for Infrastructure and Regional Development Stephen A. Jones and Harvey M. Bernstein- McGraw Hill Construction Rodd Perey - Architectus Steve Hallam - Deloitte Digital Gerd Schenkel - Telstra Mary O’Kane - National ICT Australia (NICTA)

Not a member of Consult Australia?

To find out more about how your firm can benefit from our: • Benchmarking

Giovanni Ambrosini - MWH Global

• Business support

Marissa Powell - Arup

• Staff development

Suibhne Cullen - AECOM

• Business development

Katrina Gertsmann - Beca and Railway Technical Society of Australia (RTSA)

• Advocacy

Chris Moore - Finex Australasia Dr Jane Leary and Catherine Petterson - Diversity Council Australia (DCA) Mike Pinkerton - Aurecon Catherine Morar - Renewable Energy Engineering

Contact Consult Australia’s Director of Membership, Julia Lemercier on (02) 8252 6702 or email julia@consultaustralia.com.au

Paul Morris - GHD Jamie Shelton - Northrop Engineers and National Engineering Board

www.consultaustralia.com.au

Keith Suter - Global Directions

CBW Building, Melbourne

When it comes to super, you can rely on

cbus At Cbus, we look after our members by: Investing back into the building and construction industry, as part of our long-term investment strategy, thereby creating jobs.

Being run only to benefit members.

If you’re in the building and construction industry – Cbus is your industry super fund.

Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you. For a copy: call Cbus on 1300 361 784 or visit www.cbussuper.com.au Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262.

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Consulting Matters

What’s happening at Consult Australia

From the President “…this is a fantastic time in the business world, because business is going to change more in the next ten years than it has in the last 50…”

-Microsoft Founder, Bill Gates

The Digital Economy—often referred to as the new economy—is becoming increasingly intertwined with our traditional economy. We are seeing such a large part of the business world turning to technology as part of its everyday: through the use of the Internet and mobile devices, to GPS data gathering and Building Information Modelling (BIM).

Simply put, technology can be considered as today’s driver for innovation, a boost for productivity and social wellbeing, and a facilitator for Australian business to compete in a global environment.

Australia is already well placed to be a driving force of the digital revolution. The use of online services by Australians covers nearly every aspect of our daily lives: paying bills, booking holidays, reading the news or preparing the nightly meal. Similarly in our businesses almost every aspect can be enhanced through some form of digital service delivery: from email, project websites and BIM, to systems management in the delivery of projects.

Our favourable position is well evidenced by a recent Deloitte report that has Australia ranked eighth in the world for broadband adoption; whilst we are behind the US, we are well ahead of the UK, Spain and France.

As an industry in Australia, we have adopted the digital marketplace ahead of both the tourism and health sectors and we are sitting right alongside the retail industry. Already our sector contributes some eight per cent to GDP and provides hundreds of thousands of jobs to professionals. Just image where the Digital Economy can lead us.

As our client’s expectations are raised, goalposts are moved and global competition becomes a true threat, our industry must position itself to prepare for change.

Whilst so much of technology is still in its relative infancy, a number of industry sectors such as media, mail and the record industry already face extinction. Are there parts of our sector that could go the same way? More importantly are there parts of our sector that could be further enhanced to improve productivity and service delivery outcomes?

The built environment industry—comprised of small, medium and large firms—must show leadership and demonstrate a new degree of agility in responding to changes brought about by the Digital Economy. Those that invest and lead will deliver the same services

With the digital age blurring sector boundaries and transforming entire industries, there is no doubt that our traditional businesses will encounter opportunities to generate new revenue.

more effectively, but those that pioneer new business models will be the true innovators.

Whatever path we choose, we must respond in some form or another.

In this issue of Consulting Matters you will read about global digital trends and the transformation of our industries. You will read about taking leadership in a digital economy, and you will also be asked whether you’re ready to throw away the rule book and embrace change. Whilst this change may be daunting—it is certainly inevitable.

With the digital age blurring sector boundaries and transforming entire industries, there is no doubt that our traditional businesses will encounter opportunities to generate new revenue. Will it be the architect, engineer or quantity surveyor that develops the next generation of BIM software? Whilst some of these opportunities will stare us in the face, it is those that are less evident—such as multiple business solutions, web based business portals, selling internal insight and data and economic collaboration—that will offer the greater reward.

Matthew Harris President

Consulting Matters

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Consulting Matters

From the CEO However, the opportunity cost can also be huge. Not adapting to a world where a more sophisticated online presence and interconnectivity of systems is an expected minimum by clients, consumers and employees can cripple businesses trying to keep up in a competitive market. In this way, investing in technology has become a no-brainer—the cost of not moving equates to the type of short-termism that stymies projects, businesses and governments alike.

Big data, the cloud, virtualisation, VPN, server mirroring, data farming, exchange servers, HTML, digital footprinting—this is all terminology that is now part of our regular business vernacular, yet a decade or so ago they were still foreign language to all but the most geeky among us. Technology has transformed the way we communicate, view life and do business.

The challenge for business owners (beyond keeping up with the pace of change and understanding the terminology) is getting the balance right between the cost of investment, training and time and the productivity/ business benefit. Anyone who has ever installed a new internal system knows that this is a piece of string that can be very, very long and costly too (especially if you don’t get it right the first time!).

It is for these reasons that Consult Australia is continuing to improve real-time services to members by developing both our own internal systems and collaborating with others to provide a more refined offering than has been possible in the past. Our agreement with Deloitte Private, for example, to provide our Practice Performance Survey (PPS) in a realtime, online environment will bring enormous benefits for members. The new service will shift our benchmarking survey from an exercise that measured previous results to create a document that was interesting yet static and not particularly useful, to a real time business planning tool which can be used for scenario planning and decision making.

Like anything in business, it is only when the data tells a useful story that gives owners insights into the business and offers options regarding levers for change and strategic decision making that it is useful and not just more ‘noise’.

This is one of the major reasons that Building Information Modelling (BIM) can be such a game changer for our industry. More than just a virtual modelling tool, the real benefits of BIM come from the creation of a big data environment for the inner workings of a building or piece of infrastructure. Bringing disparate and sometimes overwhelmingly

The challenge for business owners (beyond keeping up with the pace of change and understanding the terminology) is getting the balance right between the cost of investment, training and time and the productivity/business benefit.

complex information together in a single source point allows for better information coordination, and therefore reduced margins of error and better project (and asset) management. The trick for consultants, apart from the obvious challenges of the cost of embedding BIM knowledge and capability within their organisation, convincing clients of its benefits and dealing with technical and commercial issues, will be to realise the internal return on investment beyond the sales pitch to the client.

These and other critical business issues will be discussed by the leaders of our industry over two days (19/20 June) at Consult Australia’s inaugural Asia Pacific CEO Conference. I look forward to seeing many of you there.

Megan Motto Consult Australia

Consulting Matters

Insights that build competitive advantage We’re with you

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Consulting Matters What’s happening at Consult Australia

Meet the new Consult Australia President and members of the Board CONSULT AUSTRALIA IS PLEASED TO WELCOME THE FOLLOWING INDIVIDUALS TO THE BOARD OF CONSULT AUSTRALIA. THE BOARD IS COMPRISED OF CONTINUING DIRECTORS: MATT HARRIS (RIDER LEVETT BUCKNALL), JAMES WRIGHT (BECA) AND JOANNE METCALFE (GHD), RE-ELECTED MEMBER: IAN HOPKINS (NDY) AND NEW MEMBERS: CAMILLE MCGREGOR (SINCLAIR KNIGHT MERZ), NEILL STEVENS (NS PROJECTS) AND KIRI PARR (ARUP).

AS THIS EDITION OF CONSULTING MATTERS GOES TO PRINT, TWO NEW DIRECTORS HAVE BEEN APPOINTED TO THE BOARD: ANDREW MATHER (WSP BUILDINGS) AND BRUCE SHAW (THE BUCHAN GROUP).

…BEING APPOINTED AS PRESIDENT OF CONSULT AUSTRALIA IS A GREAT HONOUR. THIS APPOINTMENT DEMONSTRATES THAT THE ASSOCIATION IS EMBRACING ITS VISION OF DIVERSITY AND THE NEED TO CREATE A BETTER BUSINESS ENVIRONMENT FOR ALL PROFESSIONALS WHO CARRY OUT THEIR BUSINESS IN THE BUILT AND NATURAL ENVIRONMENT. I LOOK FORWARD TO WORKING WITH MY FELLOW BOARD MEMBERS TO DEVELOP OUR STRATEGIC DIRECTION AND DELIVER ON THE GREAT WORK OF THE PAST PRESIDENT, BOARD AND SENIOR MANAGEMENT TEAM. ONE OF THE MAJOR FACTORS AFFECTING OUR INDUSTRY IN THE NEXT TWO YEARS WILL BE AUSTRALIA’S SHIFT FROM THE RELIANCE ON INVESTMENT IN NATURAL RESOURCES, TO ONE THAT REQUIRES A BALANCING OF INVESTMENT ACROSS NON-MINING BUSINESS ACTIVITIES. AS OUR INDUSTRY BODY CONSULT AUSTRALIA IS OUR VOICE AND ADVOCATE TO ENSURE THAT AS PROFESSIONALS WE WILL BE WELL POSITIONED TO DELIVER ON THESE FUTURE OPPORTUNITIES.

Matthew Harris Director Rider Levett Bucknall (RLB) Matthew Harris is a National Director of Rider Levett Bucknall (RLB) based in Sydney.

Matthew has a strong background in business management, finance and human resources and is Chair of RLB’s National Insurance and Infrastructure Committees.

With over 20 years of experience as a quantity surveyor, Matthew has worked across a number of major projects; representing RLB on Public-Private-Partnership’s including the most recent appointments to the Sydney International Convention Centre and North West Rail Link. Matthew is an Associate Member of the Australian Institute of Quantity Surveyors and a member of the Australian Institute of Company Directors.

What’s happening at Consult Australia Consulting Matters

THIS IS A CHALLENGING TIME FOR OUR INDUSTRY AS WE GO THROUGH FUNDAMENTAL CHANGES IN THE ECONOMY. THIS WILL BE AN IMPORTANT PERIOD IN THE EVOLUTION OF CONSULT AUSTRALIA, AND I LOOK FORWARD TO BEING PART OF NAVIGATING THE ASSOCIATION THROUGH IT, AND EMERGING STRONGER ON THE OTHER SIDE.

James Wright Australian Managing Director Beca James Wright is the Australian Managing Director for Beca. Before joining the firm in 2012, James held various leadership roles with KBR, including Director of Business Operations across the Asia Pacific and General Manager for Queensland. He has led significant organisational change programs and has been on leadership teams for several major projects. With 20 years of experience in the industry, James brings a strong business perspective and broad regional knowledge to the Board as well as challenging thinking. James is a mechanical engineer and holds an MBA from the Australian Graduate School of Management.

I AM PASSIONATE ABOUT THE ISSUES AFFECTING OUR INDUSTRY AND COMMITTED TO ASSISTING CONSULT AUSTRALIA CREATE A BETTER BUSINESS ENVIRONMENT FOR CONSULTING PROFESSIONALS. I AM PARTICULARLY PASSIONATE ABOUT BEST PRACTICE PROCUREMENT INCLUDING FAIRER CONTRACTING AND ENJOY CO-CREATING POLICY WITH, AND ADVOCATING ON BEHALF OF, OUR MEMBERS.

Joanne Metcalfe Manager, ACT & Southern NSW GHD Jo Metcalfe has worked at GHD for the past 10 years and now manages over 180 GHD employees from offices including Wagga Wagga, Nowra, Bega and Port Morsesby. This is Jo’s second term on the Consult Australia Board where she also sits on the Finance Committee and provides support to the ACT Division of the Association. She has a wealth of related experience, having been involved in the activities of a number of industry bodies including the Property Council of Australia and Australian Institute of Architects. Jo has also been a member of the Professional Standards Councils in each state and territory for 10 years.

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I AM PLEASED THAT THE MEMBERS OF CONSULT AUSTRALIA HAVE BEEN PREPARED TO EXTEND MY TENURE ON THE BOARD FOR A FURTHER TWO YEARS. I LOOK FORWARD TO CONTINUING TO WORK WITH THE EXECUTIVE TEAM TO FURTHER EXPAND CONSULT AUSTRALIA’S INFLUENCE AS THE LEADING REPRESENTATIVE ORGANISATION FOR SERVICE PROVIDERS TO THE BUILT AND NATURAL ENVIRONMENT.

Ian Hopkins CEO Norman Disney & Young (NDY) As Chief Executive Officer of Norman Disney & Young (NDY), Ian Hopkins is responsible to the Board for the overall technical and financial performance of the group. Ian has been NDY CEO since 1991, and was previously Director in charge of NDY’s Melbourne office.

His commitment to technical excellence has positioned the firm as an acknowledged market leader. Ian was a key player in the formation of a recent joint venture with LTK Rail to create NDYLTK Rail, a firm which is making significant inroads in the local rail infrastructure market. His career focus has been on the design of energy efficient air conditioning systems for a variety of buildings and Ian is now responsible for the international operations of NDY across 11 offices in Australia, New Zealand and the United Kingdom.

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Consulting Matters What’s happening at Consult Australia

CONSULT AUSTRALIA PLAYS AN IMPORTANT ROLE IN SHAPING THE BUSINESS ENVIRONMENT FOR CONSULTING PROFESSIONALS IN THE BUILT AND NATURAL ENVIRONMENT. AS A NEW MEMBER OF THE BOARD I AM EAGER TO CONTRIBUTE TO THE SUCCESS OF CONSULT AUSTRALIA IN SERVING ITS MEMBERS AND INFLUENCING OUR INDUSTRY.

Camille McGregor Global Services Leader – Water and Environment Sinclair Knight Merz (SKM) As the Global Services Leader for SKM’s Water and Environment business, Camille’s role is to provide strategic leadership in the development of SKM’s technical and delivery capability. Camille and her team are passionate about fostering innovation and developing consulting professionals to meet SKM’s clients’ needs now and into the future. She also plays an important role in the deployment of key resources across the globe to enable integrated and unique offerings to SKM’s clients. As an environmental scientist, Camille provides strategic, policy and planning advice in natural resource management to regional, state and federal government departments and organisations.

WITH A STRONG PERSONAL FOCUS ON POSITIVE RELATIONSHIP MANAGEMENT AS THE CORNER-STONE OF PROJECT SUCCESS, I LOOK FORWARD TO WORKING WITH THE BOARD AND EXECUTIVE TEAM TO CONTRIBUTE ON KEY MATTERS OF INTEREST TO ALL MEMBERS—FAIR TERMS OF ENGAGEMENT, IMPROVED RELATIONSHIPS WITH CLIENT BODIES AND ENHANCED INTERDISCIPLINARY COMMUNICATION AND COOPERATION. I LOOK FORWARD TO REPRESENTING WESTERN AUSTRALIA AND THE NORTHERN TERRITORY AND BRINGING TO BEAR THE PERSPECTIVE OF A MEDIUM SIZED PROJECT MANAGEMENT PRACTICE.

Neill Stevens Managing Director NS Projects Neill has over 32 of years’ experience, focusing on the property development and construction industries, mostly at senior management and director level. As Managing Director of NS Projects, Neill has been involved in the direction and project management of many high profile urban renewal, built form, infrastructure and land development projects in the public and private sectors. His expertise is in the leadership of project initiation, feasibility studies, due diligence, commercial analysis and development and implementation of project procurement and delivery strategies.

THERE ARE SIGNIFICANT RISKS FOR CONSULTANTS IN THE AUSTRALIAN JURISDICTION AND I AM LOOKING FORWARD TO BEING PART OF TACKLING THAT DEBATE FROM AN INDUSTRY LEVEL.

Kiri Parr Regional Legal Counsel Arup Kiri Parr is Regional Legal Counsel for Arup, leading the delivery of legal services to the business in the region, which encompasses Australia, New Zealand, Singapore and Indonesia. Kiri has been with Arup for eight years and her role extends to risk management, contract negotiation, dispute management and general legal advice. Prior to joining Arup in 2005, Kiri worked for 10 years in private practice specialising in construction law. Kiri has a Bachelor of Arts and Law and is a graduate of the Australian Institute of Company Directors.

What’s happening at Consult Australia Consulting Matters

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Consult Australia’s life members Consult Australia is pleased to have appointed two new life members to the Association.

David Porter From his first involvement with the then Association of Consulting Engineers Australia (ACEA) in 1993, David Porter has continued to play an integral role in developing and implementing many of Consult Australia’s strategic goals.

David joined the WA Division Committee in 1997 and became Treasurer in 2002—a role he held until 2008. He was elected as Committee Chair in 2009, stepping down from the role in 2010. David continues as an active member of the WA Division Committee as Treasurer, having accumulated 20 years of involvement and 16 years of active service to Consult Australia.

During his involvement with Consult Australia at both state and national levels, David has contributed to the ongoing development and growth of the organisation.

David’s key achievements during this time included: active representation of small member firms, encouraging unity in consulting professions for fair contractual terms, and maintaining high ethical and business standards for the engineering profession. David has represented Consult Australia in a number of roles including: the WA representative for West Australian Local Government Association (WALGA), WA representative at four National Congress sittings, and WA representative in the lobby to Parliament for fair Public Indemnity insurance for the consulting industry.

Of particular note was David’s input to the redrafting of the new constitution for Consult Australia—which was significant both in time and importance to the members of the WA Division. He consulted most WA members and gave all an opportunity to participate in the process. The duplication in commentary from members meant that this was a time intensive activity, which David undertook with diligence and integrity.

David is a highly regarded and successful professional engineer, and an exceptional individual. He not only volunteers his time and services to our industry, but to the community at large through his many years of involvement with Rotary International, also at executive committee level. For his industry and community service, David is already an admired ambassador for Consult Australia in Western Australia.

“The leadership and relationship building of the Western Australian Division over the years has resulted in us having advisory roles to government agencies and a respected role in the quest for fair and equitable terms of engagement and service delivery. The built environment in Western Australia continues to be expanded with outcomes a reflection of the skill and dedication of our industry. On a personal note, my involvement has provided the opportunity to be well informed about the industry in which my practice works and to build a respected profile.” – David Porter

Frank Vromans Frank Vromans has been involved with Consult Australia since the 1980s and has played a highly active role in the Queensland Division since 1999.

In October 2002 Frank took on the role of convenor of the Transport and Main Road (TMR) panel for the Queensland Division, a role he continued to hold until March 2012. During this time Frank formalised a regular schedule of workshops with TMR, which to this day continue to be an important part of the Division’s engagement with government.

Frank became Deputy Chair in 2009 and took on the role of Chairman of the Division Committee in September 2010, stepping down from that role in March 2012. In 2010 Frank was elected onto the National Board as the Queensland Division Director, a role he continued to hold until the new Board was elected in March 2012.

During his 20 plus years of involvement with Consult Australia, Frank has contributed a great deal towards the ongoing development and growth of the Association.

During his time as Deputy Chair and Chair of the Queensland Division, Frank also played an integral role in the introduction of the FutureNet Business Leaders Course to the state, the attraction of new sponsors, and the increase of seminar and event frequency— allowing more opportunities for members to participate and increasing the profile of Consult Australia at a state level.

Frank also played a key role in governance reform in the state, the introduction of additional membership categories (affiliate and associate), the new division allocation model and the review and changes to the national Awards for Excellence award categories.

Outside of his Consult Australia roles, Frank has contributed to improving the business environment and profile of consultancy firms through his involvement with the

Infrastructure Sustainability Council of Australia (formerly AGIC); Engineers Australia’s Queensland Division; and Arup Australasia.

Frank has been a key figure in the infrastructure sector for over three decades.

As Arup’s Infrastructure Leader, Frank’s contribution to the Australasian infrastructure landscape has been significant. He has been responsible for the delivery of some of the region’s major infrastructure projects including the Brisbane Airport Link projects, SAFElink Alliance (Ipswich Motorway Upgrade) and the Gympie Bypass.

“Supporting your profession through Consult Australia provides a great opportunity for growth and for watching others develop.

Working with a great team both in Queensland and nationally is a real pleasure.

Get involved, it rewards in so many ways!” – Frank Vromans

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Consulting Matters What’s happening at Consult Australia

Australia’s infrastructure future The Australian Government has an ambitious agenda for building the infrastructure of the 21st century to increase the productive capacity of our economy. From busting congestion in our major cities costing the economy $15 billion each year to establishing better freight networks that link our major sea and air ports, the Australian Government is embarking on a significant infrastructure spend of $35.5 billion, $8 billion more than committed to in the 2013 Budget, over the next six years.

We want to ensure that this and future spending is invested wisely and projects are constructed as quickly as possible.

A key part of our infrastructure agenda is our reforms to Infrastructure Australia (IA) and commissioning of the Productivity Commission (PC) to examine the provision of public infrastructure. While IA has made some progress, the Australian Government through its changes to the IA legislation is looking to boost rigour and accountability in the process of project selection, and through the PC inquiry roll out reforms that achieve greater efficiencies in procurement, delivery and financing.

When first established in 2008, the Labor government claimed that IA would be an independent authority designed to advise on Australia’s infrastructure needs and eliminate pork barrelling. Sadly, after six years in government Labor failed to realise the full potential of IA instead making infrastructure investment decisions with little consultation based on political advantage instead of robust economic advice. These failings are seen in IA’s rubber stamping of the NBN and Labor’s politically preferred rail projects in Sydney, Melbourne and Brisbane.

In its current form IA cannot undertake many of its core functions unless specifically requested to by the Minister including, evaluating proposals; providing policy advice on development of, and investment in, infrastructure; and reviewing funding programmes for nationally significant infrastructure. This significantly constrains the capacity of IA and allows the Minister to control its work priorities and areas of focus.

The senior role of Infrastructure Coordinator is also appointed by and directly answerable to the Minister which further increases the government’s capacity to influence IA’s priorities and diminish its independence.

This has led to a situation where instead of being a transparent and independent advisory body, IA has been improperly

used by government as a vehicle to justify infrastructure investments for political advantage, exacerbating the very problem it was supposed to resolve.

Over the last few years the Coalition actively consulted industry and the broader public on how to improve the capacity of IA and realise its true potential. The response was overwhelming with industry keen for an accountable and more business-like authority that establishes more transparency in project selection and provides greater certainty for infrastructure investment. This is why the Australian Government is seeking to restructure the governance arrangements, by appointing a CEO who will report directly to a Board ahead of any advice offered to the Minister. With highly regarded businessman Sir Rod Eddington as Chairman and other eminent board members including Mark Birrell and Kerry Schott, I am confident IA will deliver significant value to the infrastructure task we face.

As part of our reform agenda we will also ask IA to undertake a full audit of our infrastructure asset base, in collaboration with states and territories, and develop a 15 year pipeline of major infrastructure projects, which will be revised every five years. This will attract greater investor participation in Australia’s major infrastructure projects and introduce more robust competition, ensuring better project delivery outcomes for both investors and taxpayers. These reforms are strongly supported by the business community and state/territory governments and we expect them to pass the Parliament.

Making IA a more transparent, business-like authority is one part of the reform agenda for infrastructure. Other parts include the PC’s inquiry into the cost and delivery of public infrastructure and establishing a long-term view on the economically productive projects governments choose to invest in and the financing of these investments. These are areas with enormous potential for reform.

Submissions to and findings from the Productivity Review into the cost, delivery and financing of public infrastructure will further assist the Australian Government to complete its reform agenda and get on with building better infrastructure, easing congestion, linking communities and lifting productivity.

More broadly, since the September election the Council of Australian Governments led by the Prime Minister is actively considering

introducing reforms that will provide incentives for recycling government-owned assets to raise funds to finance future infrastructure projects and also establish one stop shops for environmental approvals to streamline planning processes. The Australian Government’s first legislative ‘repeal day’ to slash red and green tape by over $1 billion a year and the re-introduction of the Australian Building and Construction Commitment to tackle construction costs will further add to these initiatives to strengthen our economic capacity. We are also seeing more private investment and direct approaches from the private sector to invest in projects.

Infrastructure projects, like the M1 to M2 and Westconnex in Sydney, show more confidence in the market to invest, carry project risk and deliver major road works faster.

The advice I am receiving from both industry and state governments is that there is a lot of equity available for major infrastructure projects if we get the market structures right, which is the purpose of the reforms we are pursuing. These reforms coupled with responsible management of the budget demonstrate the Australian Government’s commitment to increase our productive capacity and drive the economy forward.

The economic and fiscal challenge facing Australia is not insignificant, but neither is our resolve to deliver on our election commitments to build the roads of the 21st century, create jobs and grow the economy.

The Hon Jamie Briggs MP Assistant Minister for Infrastructure and Regional Development

Consult Australia’s submissions to the Infrastructure Australia Amendment Bill 2013 and the Productivity Commission inquiry into Public Infrastructure can be read in full on our website.

What’s happening at Consult Australia Consulting Matters

15

Photo courtesy of HYLC, a joint venture of Hansen Yuncken and Leighton Contractors.

The Business Value of BIM in Australia and New Zealand How Building Information Modelling is transforming the design and construction industry

The use of Building Information Modelling (BIM) is spreading rapidly through the global design and construction industry, and architects, engineers, contractors and owners in Australia and New Zealand are no exception. Drawn to the practical efficiencies, integrated processes and compelling visuals BIM offers, new adopters are coming on board, and existing users are planning aggressive expansion of their BIM programs.

The McGraw Hill research study focuses primarily on BIM users in Australia and New Zealand, and it shows that firms in these countries, though relatively new to the use of BIM, recognise its value and are planning to deepen their BIM investments. In fact 51 per cent are engaged with BIM on more than 30 per cent of their projects today, and this is expected to increase dramatically in the next two years—74 per cent report they will be engaged in BIM on more than 30 per cent of their projects by the end of 2015.

believe they are just scratching the surface of what they can gain.

The study also includes a review of companies not yet using BIM in Australia and New Zealand. These non-users are similar to those in other countries, suggesting that factors that have spurred adoption in other parts of the world could prompt the same shifts in the Australia and New Zealand markets. Some specific notable insights that could drive the conversion of non-users to users include the following: •C hange the perception of BIM’s efficiency for smaller projects, since 54 per cent of non-users working only in Australia and New Zealand (compared with 38 per cent of those working in and out of Australia and New Zealand) report that it is an important/very important factor delaying their use of BIM.

• Positive Return on Investment (ROI) for BIM: Reported by 75 per cent, with 30 per cent citing ROI of 25 per cent or more.

•D emand by owners, including a government mandate, can be a key factor helping spur adoption. Significantly more non-users working only on in-country projects believe that their competitors and clients are not using BIM, compared with their peers at global firms. This suggests education is needed in this market.

• Positive view of potential benefits from BIM: 52 per cent report they can gain more than they already receive, and 30 per cent

Throughout The Business Value of BIM in Australia and New Zealand McGraw Hill Smart Market report, we provide

The research findings suggest that business benefits and returns from BIM are key drivers behind that planned growth.

comparisons between the findings in Australia and New Zealand to those from other markets we have studied since 2007, when notable.

Firms in Australia and New Zealand have the advantage of being able to learn about the benefits that others have experienced and use that knowledge to help make the case for more intensive use of BIM. We thank our partners who made this study possible, including our premier partners Autodesk and AECOM, as well as our seven other contributing partners: Aconex, A.G. Coombs, AMCA, Consult Australia, CSI Global, Laing O’Rourke and Zuuse.

Stephen A. Jones Senior Director McGraw Hill Construction Harvey M. Bernstein F.ASCE, LEED AP Vice President Industry Insights & Alliances McGraw Hill Construction

Executive Summary of ‘The Business Value of BIM in Australia and New Zealand’, by McGraw Hill Construction. Download the full report on the Consult Australia website.

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Consulting Matters What’s happening at Consult Australia

Proportionate liability—movement, finally One of the biggest issues on the advocacy agenda of Consult Australia over the last decade has been removing the ability for parties to contract out of proportionate liability. After years of discussion with government and endless lobbying from Consult Australia and others, it appears there may finally be some resolution of this issue.

At its October 2013 meeting, the Standing Committee on Law and Justice (SCLJ, formerly the Standing Committee of Attorneys General or SCAG) issued draft model legislation prohibiting contracting out of proportionate liability, for the consideration of each jurisdiction.

To understand the importance of this development, let’s consider the environment that led to the enactment of proportionate liability in the first place, and how we reached the current situation of piecemeal legislation across each of the states and territories.

Following the collapse of HIH in 2001, a range of government responses were considered to ensure the availability and affordability of insurance in the Australian market, including professional indemnity insurance. After much consideration, proportionate liability and professional standards legislation formed a key component of the government response to the issue.

Proportionate liability in particular was hailed as moving away from the ‘deep pockets’ approach to liability that had previously operated with joint and several liability, and towards better contract outcomes, with each party being responsible for those aspects of a project that they are best able to control.

However, as each jurisdiction enacted its own legislation to give effect to this reform, it became clear that the states and territories had taken different approaches to contracting out of proportionate liability, with QLD expressly prohibiting contracting out and NSW, WA and TAS expressly allowing contracting out and all other jurisdictions, including the Commonwealth remaining silent on the matter.

Shortly after, it became clear that where contracting out of proportionate liability was allowed, it was used by clients of our and other industries, often without understanding of the implications for a project’s insurance.

While proponents of allowing parties to contract out of proportionate liability

Proportionate liability in particular was hailed as moving away from the ‘deep pockets’ approach to liability that had previously operated with joint and several liability, and towards better contract outcomes, with each party being responsible for those aspects of a project that they are best able to control. frequently cite the principle of ‘freedom of contract’, the reality has been that contractual negotiations are not a level playing field, and that agreements contracting out of proportionate liability are offered on a ‘take it or leave it’ basis, with no scope for a consultant’s objections to contracting out to be heard.

As a result of this phenomenon, Consult Australia and other industry associations representing professional services businesses began a process of advocacy for nationally uniform legislation that prohibits contracting out of proportionate liability.

While studies were commissioned by SCAG, and the issue was on their agenda for several years, there was a real fear that the political impetus to bring about change had been lost, without an obviously discernible problem placed before government. While the problems relating to uninsurable risks remained, the policy imperative to ensure a viable insurance market has been considered ‘out of sight, out of mind’.

Over the last couple of years, Consult Australia and others have worked hard to keep the issue of nationally uniform legislation prohibiting contracting out on the table.

Accordingly, it was most pleasing to see this draft legislation produced by SCLJ at its meeting last October. The new legislation largely addresses our concerns, but also contains a small number of issues that will need to be fixed ahead of its passage through the various Australian parliaments.

One major feature of the draft legislation is the new definition of ‘apportionable claim’, which changes proportionate liability to cover loss resulting from breaches of duties, rather than strict economic loss. This is

important for our industry, in that it removes unfair protection for other parties to the construction contract, and in the process negates a major argument for contracting out.

The draft legislation however does contain potential problems, and Consult Australia has made representations to each government to overcome these. The major concern that we have is that the new legislation contains a clause stating that proportionate liability would not apply to matters subject to arbitration. Our fear is that if this clause is contained in the final legislation, arbitration will become a compulsory dispute resolution mechanism in all contracts, in order to create a loophole to overcome proportionate liability.

Another potential issue is that this legislation is designed to not apply to consumer claims, and under the existing definition of a consumer claim (based on the size of the fee), this could include commercial projects worth millions of dollars. Meanwhile, some concern has also been raised regarding the mechanism of joining a ‘concurrent wrongdoer’ to an action.

Despite these issues, the development of model legislation is promising, and one that we hope to see followed up with these issues addressed and then the legislation enacted. If this occurs, it will be an important policy victory for our industry.

Robin Schuck Consult Australia

What’s happening at Consult Australia Consulting Matters

Labour Market Testing Labour Market Testing (LMT) requirement for 457 nominations The Temporary Sponsored Visa Act 2013 introduced Labour Market Testing (LMT) into the subclass 457 visa programme.

The LMT requirement came into effect on 23 November 2013.

The requirement is considered met if the Minister is satisfied that a standard business sponsor has undertaken LMT, unless requiring LMT would be inconsistent with any international trade obligation of Australia. LMT is not required for labour agreement nominations or when an exemption applies.

The Department undertook consultations with key stakeholders, including Consult Australia, in order to design the LMT process to be as streamlined and low cost for sponsors as possible. This provides a balance between ensuring that Australian businesses do not experience undue delays in filling skilled labour shortages and giving Australian citizens and Australian permanent residents an opportunity to apply for those jobs.

Evidence required In order to satisfy the LMT requirement, a sponsor must provide details of their attempts (including details and expenses of advertising) to recruit suitably qualified and experienced Australian citizens or Australian permanent residents to the position and any similar positions in the 12 months prior to lodging a nomination application.

This evidence MUST be attached to the application, and if this evidence is not attached, the application may be refused.

The Domestic recruitment summary table may be used for this purpose—it can be found on the Department’s website (www.immi.gov.au/Visas/Documents/domestic-recruitmentsummary-template.docx).

The information relating to the sponsor’s attempts to recruit an Australian worker may also include information about the applicant’s involvement in relevant job and career expositions, details of fees and expenses paid (or payable) for any other types of recruitment attempts and the results of such recruitment attempts including details of any positions filled as a result.

Redundancies or retrenchments If any Australian citizens or permanent residents have been made redundant or retrenched from positions in the

nominated occupation in the business of the sponsor or an associated entity of the sponsor in the four months prior to lodgement of the application, information about those redundancies or retrenchments must be included with the application. Furthermore, LMT must have been undertaken after those redundancies or retrenchments.

Redundancies or retrenchments are only relevant where they have been in positions in the same or similar occupation to that which is being nominated. For example if a consulting company made a civil engineer redundant, this would not be relevant if they were nominating a structural engineer.

International trade obligations LMT will not be required if doing so would be inconsistent with Australia’s international trade obligations. Australia’s international trade obligations fall under two categories: World Trade Organisation General Agreement on Trade in Services (WTO GATS) commitments and Free Trade Agreements.

Further information is available on the Department’s website.

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Consulting Matters What’s happening at Consult Australia

Exemptions • A sponsor is exempt from LMT if the following requirements are met:  the skill level required for the nominated occupation is equivalent to ‘Skill Level 1’ or ‘Skill Level 2’ as currently described in Australian and New Zealand Standard Classification of Occupations (ANZSCO) (typically management and professional occupations), and  the occupation is not defined as a ‘protected qualification’ or ‘protected experience’ (see below).

• The Minister may exempt, in writing, a nomination in the event that a major disaster occurs, naturally or otherwise, in order to assist disaster relief or recovery. Major disaster exemptions can be made in relation to a specified nomination by the sponsor (i.e. a particular nomination lodged by the sponsor), or a specified class of nominations by the sponsor (i.e. a particular group of nominations lodged by the sponsor), but exemptions cannot be made in relation to a class of sponsors.

A list of occupations for which LMT is required is available on the Department’s website.

Protected experience or qualification means experience or qualification in the field of engineering (including shipping engineering) or nursing.

Occupations which meet the ‘protected experience’ or ‘protected qualification’ definition are included in the list of occupations for which LMT is required, available on the Department’s website.

Further information Department of Immigration and Border Protection Website: www.immi.gov.au/Visas/Pages/457.aspx Information on the LMT requirements can be found under the ‘Nominate’ tab on the temporary work (skilled) visa (subclass 457) page under the heading ‘Who can nominate’.

If you have any queries or require any clarifications on the above topics or any other skilled migration issue, you can contact the Department of Immigration and Border Protection’s Industry Outreach Officer placed with Consult Australia, Satinder Pasricha on 0413 234 126 or via email to satinder.jit.singh.pasricha@immi.gov.au.

Protected experience or qualification Nominations made by sponsors in occupations that meet the ‘protected experience’ or ‘protected qualification’ definition cannot be exempt from LMT under the occupation based exemptions, but provisions with regard to international trade obligations continue to apply.

ImmiAccount The recently introduced ImmiAccount is the Department of Immigration and Border Protection’s online system that lets you create, submit, pay for and manage all your online visa applications in one place. The ImmiAccount connects you to all online visa services managed by the Department, including Visa Finder, and the Pricing Estimator. All online visa applications, except Electronic Travel Authority (ETA) require lodgement from within an ImmiAccount.

Individuals Individuals need to create an ImmiAccount to apply for a visa online. For more details and to create an ImmiAccount visit: www.immi.gov.au/Services/Pages/immiaccount.aspx

Organisations Organisations need to register for an ImmiAccount to access the following services: • visa lodgement • Visa Entitlement Verification Online (VEVO) • organisation account administration.

To register for an organisational account visit: www.immi. gov.au/Services/Pages/immiaccount-register.aspx.

What’s happening at Consult Australia Consulting Matters

19

Guide to

PROCURING ENGAGEMENT SERVICES

Proudly supported by:

Consult Australia’s Guide to Procuring Engagement Services explains the procurement process for engagement services across eight key steps.

The Guide has relevance for project leaders and procurement professionals at all levels.

Visit the Consult Australia website to download the Guide.

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Consulting Matters What’s happening at Consult Australia

STATE DIVISION UPDATES WA UPDATE Consult Australia’s WA Division began 2014 with a strong focus on lobbying and advocacy.

The Division’s working groups have continued successful discussions with the West Australia Local Government Association (WALGA), Building Management and Works (BMW), Main Roads and the Water Corporation. Popular topics included limits of liabilities and contract methodologies.

Main Roads has invited Consult Australia to increase its representation to two members for future WA Road Construction & Maintenance Industry Advisory Group (WARCMIAG) meetings. Other opportunities include contributing to industry seminars by sharing experiences on ‘working around services’ on road projects, attending an open discussion on design quality, and for Consult Australia representatives to present a topic that can add to industry knowledge and performance.

The Built Environment Design Professions (BEDP) group—of which the WA Division

ACT UPDATE ‘Building something? So are we: ideas, influence, insight...’ declare Consult Australia’s new ACT banners. These banners capture the sense of optimism currently in the ACT following a series of appointments including Andrew Pike (Sinclair Knight Merz) as the new ACT Chair; Michael Hill (Opus Consultants) as the new FutureNet Chair; and Kevin Keith as the new Consult Australia Manager for ACT. “We want to do something different in the ACT,” said Andrew Pike. “To capitalise on being the capital through supporting Consult Australia’s national advocacy agenda, whilst increasing urgency at a local level to increase action on projects and issues relevant to our ACT members.”

A joint Call to Action submission to the ACT Government provided an early win for 2014.

Produced in partnership with the Property

is a member—has had ongoing discussions with BMW, principally on their amendments to AS4122. A second workshop is shortly to be held to discuss a cap on liability.

Committee members in the discussions include BEDP Chairman, Greg Howlett, Jose Granado (Wood and Grieve Engineers) and new Consult Australia Board member, Neill Stevens (NS Projects).

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We already have an excellent event calendar planned for 2014, which includes Senator Scott Ludlum who will discuss his vision for a sustainable built environment. For the third year running we have the annual breakfast with Woodside CEO, Peter Coleman, which will again be facilitated by WA Business News Editor at Large, Mark Pownall.

The annual Engineers & Architects Roundtable was held on 28 February and was attended by the leading engineers and architects in Western Australia. The theme was What Keeps You Awake at Night and there was robust discussion on design construct, state amendments to AS4122 and the economy. The event was attended by the new WA Government Architect, Geoff Warn (Donaldson + Warn).

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Council, Master Builders’ Association, Canberra Business Council and the Planning Institute of Australia, the submission calls for reductions in red tape and improvements in infrastructure investment. We were pleased to receive media coverage in The Age and the Canberra Times.

First quarter highlights included an industry meeting with the ACT Government Chief Minister, Katy Gallagher attended by the ACT Manager, Kevin Keith and a successful February boardroom lunch with ACT Deputy Chief Minister, Andrew Barr. Both meetings are an exciting indication of what is to come in the year ahead.

Consultation on the regulation of construction design and inspection practitioners by the ACT Government mobilised members in February, with Consult Australia supporting registration but advocating for uniformity across states and territories.

Consult Australia members Max Bomben (Brown Consulting) and John Randall (Indesco) continue to lead input into the ACT road standards committees in a governance and technical capacity respectively.

Reinvigorated action-focussed meetings resumed between Consult Australia and the ACT Government to progress longstanding issues and prioritise tasks including: the introduction of consultant brief development checklists; the reinstatement of pretender consultant checklists; early contractor involvement; consultant performance appraisal systems; and budget assessments as a requirement of the consultant brief.

An events calendar for 2014 is currently in production and will be online soon.

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What’s happening at Consult Australia Consulting Matters

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STATE DIVISION UPDATES VIC UPDATE The Victorian Division has started the new year with a refresh of our Committee.

We would like to welcome new starters Ray Mahony (KBR), David Raftery (Golder Associates) and Glenn Dunstone (Parsons Brinckerhoff). We look forward to another successful year of initiatives and events.

Our VIC Policy Paper for 2014—Promoting Excellence in the Built Environment— has been released and will be used as a means of engaging with government and stakeholders on various issues the industry is facing within Victoria. The recommendations outlined in the paper include: planning and developing a stronger infrastructure pipeline; releasing new funds for infrastructure investment; supporting best practice procurement; and creating a better business environment. A big thank you to all member firm representatives who participated in our January policy workshop—your contribution has greatly assisted in the development of this paper, which can be downloaded on the VIC Advocacy section of the website.

TAS UPDATE The Tasmanian Division has kicked off the new year with a boardroom luncheon with Ms Elise Archer, MP who provided an update on her views on Tasmania’s future.

A group of 15 representatives from firms across Hobart participated in a Q&A with Ms Archer on a variety of issues concerning economic development and contract terms for consultants. Ms Archer also discussed the plans for job creation, and ways to make Tasmania more attractive for economic investment by delivering certainty and cutting red tape. She also noted that further investment in education to create a job-ready generation, as well as building a modern economy supported by competitive strengths in mining, forestry and tourism was also a priority. Thank you to SKM for hosting this event.

The Tasmanian Division’s Gold sponsor, Easyconsult has now hosted a number of

We held a successful luncheon on 26 February with the Society of Construction Law, hosted by Minter Ellison on risk allocation in contracts. This event saw likeminded built environment consultants and law professionals come together to discuss common issues in contracts.

Our first 2014 event in our Meet the Client event series kicks off on 3 April with VicRoads Chief Operating Officer, Peter Todd. We have an exciting line up of events planned for the remainder of the year, with contractors and delivery agencies presenting to members on a range of issues. We hope to see you there!

We will continue to discuss procurement, contracts and risk concerns with VicRoads and give them the opportunity to hold workshops with member firm representatives to ensure best policy practice is put into place.

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webinars to provide Tasmanian members with the opportunity to view their fantastic presentations without having to leave their desks! The presentations have covered: ‘How to build a $1 million consulting practice in 12 months’; ‘the seven high performance habits of great consultants’, ‘the seven steps of world class time management’ and ‘from being known as technical to a great consultant’. If you missed out and would like to view the webinars, please email TAS State Manager, Zeina Iesa.

Tasmania has an exciting line up of events for 2014. We look forward to our annual professional indemnity insurance forum with one of Consult Australia’s PI Pathway brokers, as well as an End of Financial Year cocktail evening, and other events with key stakeholders.

We would also like to welcome new member firm, Entura who is a part of Hydro Tasmania—Australia’s largest renewable energy producer and water manager. We look forward to working with you.

Are you interested in becoming part of the Tasmanian Division Committee? Please register your interest, by emailing Zeina Iesa on zeina@consultaustralia.com.au.

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Consulting Matters What’s happening at Consult Australia

STATE DIVISION UPDATES QLD UPDATE Consult Australia’s QLD Division has started 2014 as we mean to continue: with influence, creating value through our services, and promoting excellence.

In January we started off our client engagement with meetings with the Health Department and Brisbane City Council (BCC). We are now looking forward to regular quarterly meetings with both organisations to keep the communication channels open. Our April scheduled meeting with BCC will focus on how improvements can be made to the process of applying for their infrastructure panels (which are due for renewal in 2015). We welcome your feedback on the latter process to assist us in future meetings.

Our new Queensland Environment Committee, chaired by Golder Associates’ Queensland Manager, Helen Jones is now

NSW UPDATE The NSW Division has had a great start to the year. Following our policy workshop held in November 2013, the Division’s policy platform, Promoting Excellence in the Built Environment has been developed and will be released shortly. The document outlines the NSW Division’s recommendations for planning and funding infrastructure, supporting best practice procurement and creating a better business environment.

The Division is also proud to announce that the CEO of one of the world’s largest consulting engineering firms, Stanley Consultants’ Gayle Roberts will be joining us at an upcoming event to speak about her experiences as a female climbing the ranks to become a leader in a traditionally male dominated sector. She will also share her views on what Australia can learn from the American experience. This event—Learning about Diversity and Inclusion through the American Experience—will be held on 24 March at The Waterfront in The Rocks in Sydney.

well established. The Committee was pleased to have Environment Institute of Australia and New Zealand (EIANZ) SEQ President, Vicki Low of Origin Energy join them at their March meeting to discuss opportunities for collaboration between our groups.

We commenced the year with a series of events focussed on setting the scene for 2014. Starting with an update on the global megatrends, the events took a forward focussed look at the various factors that will influence our member firms in the coming years. Our 30 April Building Information Modelling (BIM) event will bring some of our clients to the table to discuss what challenges and opportunities there are for asset owners. With representation from Department of Defence and Queensland Transport and Main Roads, this will be a great opportunity to engage with clients.

We will be asking our audience to consider: if your clients were to specify BIM use, are you prepared?

On 12 February the NSW Division had a productive meeting with the Minister for Finance and Services, Andrew Constance, who has committed that the Department will continue its work on a new standard agreement for consultants working with government. Consult Australia has been working with the Department to negotiate fairer terms for our members within this contract.

The NSW Division’s senior leaders kindly lent a hand with our 2013 FutureNet Business Leaders Course, which concluded with a successful awards night on 28 November. Over 120 attendees were fortunate enough to view the team presentations and hear speeches from Infrastructure Australia Executive Director – Planning, Stephen Alchin; Sydney Harbour Foreshore Authority Executive Director of Place Development, Dr Deborah Dearing; and the Mayor of Leichhardt, Councillor Darcy Byrne. Congratulations are extended to the entire 2013 group who were commended by the judges for their efforts.

The NSW Division has also been working with the former chief executive of the

In the coming months we will be continuing to work with Transport and Main Roads on contract conditions, will commence the FutureNet Business Leaders Course and will host our Meet the Client events with key stakeholders.

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Federal Airports Corporation, Barry Murphy to create a brief for the next FutureNet Business Leaders course project.

Applications are open for the 2014 program and all are encouraged to apply.

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What’s happening at Consult Australia Consulting Matters

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STATE DIVISION UPDATES SA UPDATE The SA Division has continued engaging with government and opposition leading up to the state election, advocating for more collaborative relationships between business and government.

To further support our advocacy efforts, the Division developed and launched a policy platform, Promoting Excellence in the Built Environment. The document provides a basis for all spheres of government to begin a new conversation with industry to discuss reforms and initiatives that will support local industry and build productivity, ensure retention of skills within the state, moderate the extremes of boom/bust cycles, and in the long-term lower construction costs while enabling greater innovation. Through this platform, we recommend: planning and developing the infrastructure pipeline; releasing new funds for infrastructure investment; greater support for best practice procurement; and creating a better business environment.

The platform was launched on 21 February at a boardroom lunch with the Assistant Minister for Infrastructure and Regional

NT UPDATE Consult Australia’s NT Division is now reaping the rewards of our work over the last 18 months. Our continued engagement advocating for greater collaboration between business and government—specifically regarding best practice procurement—has positioned the Division as a ‘go to’ industry body for our sector for a number of NT government departments.

In early February the Department of Infrastructure (DoI) invited the NT Division to meet to discuss proposed changes to the Department’s procurement methodology, with a view to terminating Consultants Panels and going to tender for all consultants services. The initial meeting between the DoI and NT Division Committee representatives investigated the Department’s drivers for change and allowed Consult Australia to raise

Development, the Hon Jamie Briggs MP. South Australian member firm representatives; Consult Australia’s CEO, Megan Motto; and SA State Manager, Jan Irvine met with Assistant Minister Briggs to discuss alternative infrastructure funding and financing models, and ways to reduce the cost of building infrastructure through greater efficiency and the removal of red tape.

In support of these recommendations, we recently held a breakfast on the Integrated Transport and Land Use Strategy (ITLUS) and the Regional Mining & Infrastructure Plan (RMIP) with Department of Planning, Transport and Infrastructure (DPTI) Executive Director, Mark Elford and Project Director, Phil Lawes. This event gave our audience the opportunity to receive a detailed update on the ITLUS and how the RMIP integrates with the plan. They were also given the opportunity to engage with our speakers during the Q&A and at the conclusion of the presentation.

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As we move further into 2014, the SA Division will continue to pursue our policies with the elected government and build on strong relationships already forged on both sides of the political arena.

concerns that removing the panel without an improved solution would be detrimental to the industry and DoI. The Division is in the process of developing a response for the Department, which includes possible ways to improve the existing panel, a suggested alternative solution and an outline of any ramifications for our members; both those on the panel and those not on the panel. Further updates on this issue will be provided via our NT e-newsletter.

Upcoming Division events to look out for will include our Valuing Better Engagement forum, which will be held to further the conversations started with the launch of Consult Australia’s latest piece of thoughtleadership, Valuing Better Engagement: A Guide to Procuring Engagement Services.

Engagement is the process by which government, organisations, communities and individuals connect in the development and implementation of decisions that affect them. This event will be an opportunity to discuss and understand how engagement is

used as a tool to achieve outcomes, develop understanding and agree to solutions on issues of concern.

In 2014 the SA Division will also continue our very successful Boardroom Breakfast Series. Information regarding each event will be emailed to those who have their details registered with us. If you would like to receive the NT Division e-newsletter or event details simply contact NT Manager, Jan Irvine.

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Consulting Matters What’s happening at Consult Australia

Developing industry and professionals in Northern Australia

Darwin Convention Centre

Townsville, QLD

The development of Northern Australia is a much-discussed topic in today’s political world, the media and certainly within the built and natural environment industry.

become a leader in agriculture, minerals and energy, tourism, research and education. We must remove impediments to growth and set the stage for innovation and investment.”

As two of the more major economies in the ‘top half’ Darwin and Townsville provide a service centre and transport hub for the region’s mining and agricultural industries, as well as offshore oil and gas production, pastoralism and tourism.

Part of the Committee’s role is to ‘identify the critical economic and social infrastructure needed to support the long-term growth of the region, and ways to support planning and investment in that infrastructure’.

Known by many as the gateway to SouthEast Asia, its locations at the intersection of the growing Asian and Tropical regions means that Northern Australia will be presented with significant opportunities to capitalise on its strengths and unlock economic value. These opportunities, if realised, will ultimately create new jobs, greater income and better prospects.

This ultimately presents a significant opportunity for the built environment

In late 2013, the Australian Government formed the Joint Selection Committee on Northern Australia—indicative of just how important this region is to the nation.

Committee Chair, the Hon Warren Entsch stated, “With its abundant resources and proximity to Asia, Northern Australia is set to become the new frontier in the economic development of Australia, opening up new opportunities which will benefit the entire nation.

“With the right policies and incentives in place, Northern Australia has the capacity to

FutureNet Townsville event launch

industry. If a consistent and stable pipeline of work becomes a reality, employment opportunities for professionals in Northern Australia will be more abundant, and more secure, than they have ever been.

With promising times ahead, the FutureNet initiative is taking the lead in Northern Australian industry and is spearheading true collaboration: bringing together lawyers, planners, engineers and quantity surveyors across the industry.

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“The future of the region is in your hands and if ever there was a time to jump on the opportunities available locally, the time is now.

“We have an opportunity to unlock the full potential of a strong economy for Northern Australia and we all need to work together to make that a reality.”

Top left: Jo O’Brien FutureNet Darwin Chair Top right: Sam Hollis FutureNet Townsville Chair

In 2013 and early 2014 FutureNet QLD has seen widespread success: celebrating its tenth birthday and setting up a new branch in Townsville.

FutureNet’s Townsville Chair, Samantha Hollis has taken a leading role in establishing opportunities to set up networks for the industry’s young professionals.

“In late 2012 I had the opportunity to relocate to my home town of Townsville to work on the Townsville Hospital Expansion,” said Ms Hollis.

“Having been away for a number of years, establishing a new branch of FutureNet was a great way for me to reconnect with my peers.

“There are a lot of projects underway or in the planning stages locally, and through FutureNet Townsville, we have provided a platform to share ideas and learn more about the industry.

“We’ve held three great events since forming an inaugural Committee, which has now grown to eight members and includes project managers, planners, lawyers, engineers and surveyors. We will continue to ensure we promote diversity of professionals both on our Committee and at our events to encourage the cross-disciplinary networking that FutureNet strives for.

Even further North, another group of leading young professionals recognised the opportunities available— with FutureNet Adelaide’s 2012/13 Chair, Jo O’Brien, starting up a new branch in Darwin after relocating to the city in late 2013.

“As well as tremendous career opportunities, the Territory is incomparable in its weather, lifestyle and approach to business,” said Ms O’Brien.

“When you come up north you soon learn to leave the suit and tie behind! Living and working in Darwin you can also really feel the close links and similarities with Asia.

Although it means we live with rain for three months of the year, being a stormwater engineer it’s pretty good up here!

“Launching FutureNet was especially exciting for me, because as an NT newbie, I was keen to get to know people in the top end, especially the people I would likely have professional associations with. Since launching FutureNet in October last year, we have formed a Committee of passionate and dedicated young professionals who have all worked to grow the business networks across the city.

Minister for Local Government, Community Recovery and Resilience, David Crisafulli MP joined FutureNet’s February 2014 breakfast event and applauded the FutureNet initiative.

“It is fantastic to see young professionals networking in Townsville,” said Minister Crisafulli MP.

The future of the industry in the Territory is looking good too, with the Northern Territory Government having awarded a

“It’s been an exciting start and we are looking forward to the rest of the year!”

$1.19 million contract to undertake a Regional Infrastructure Study.

Minister for Infrastructure Peter Styles said the study would identify locations for future infrastructure investment across regional and remote parts of the Northern Territory that will unlock economic growth potential over the next 30 years.

“The study will result in a 30-year NT Government Regional Infrastructure Plan by November this year,” said Mr Styles.

“Infrastructure development is the key enabler for the future development of Northern Australia.”

Consult Australia’s young professionals in northern Australia—taking the lead in the top end!

Gillian O’Young Consult Australia Darwin FutureNet Gold Sponsor:

Darwin FutureNet Silver Sponsor:

“Though we’re still a fairly new group, our events to date have been a success and I have found the close-knit consulting community to be especially friendly and welcoming. I’m looking forward to a prosperous 2014 for FutureNet NT!” NT Treasurer David Tollner has quoted Deloitte Access Economics claim that the Territory economy may grow by as much as 4.9 per cent in 2013-14 (the highest growth rate of the jurisdictions) and that growth in 2013-14 is expected to be primarily driven by private equipment investment related to major projects.

He stated that, “as a government we need to ensure we can support construction activity because these investments diversify our economy and make it less reliant on the resources sector.”

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Townsville FutureNet Platinum Sponsors:

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Consulting Matters

1 Bligh Street, Sydney BUILDING INFORMATION MODELLING (BIM) HAS EMERGED OVER THE LAST FEW YEARS AS A KEY PIECE OF THE NEW DIGITAL ECONOMY, WITH PROFOUND EFFECTS ON THE DESIGN, CONSTRUCTION AND OPERATION OF BUILDINGS.

Project profile: Architects: Architectus + Ingenhoven Architects Building owners: DEXUS Property Group, DEXUS Wholesale Property Fund and Cbus Property

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The faรงade at lobby level features operable glass walls and louvres which creates an open space at the base of the tower enabling fresh air to flow into the building H.G. Esch courtesy of Architectus

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1 Bligh Street, Sydney 1 Bligh Street is a pioneering application of BIM technology that had a very strong mandate from the client and which was strongly endorsed by Architectus and the project team. When work on the 28 level office tower 1 Bligh commenced in 2006 the use of BIM in Australia was a groundbreaking move. Hence, the project was amongst the largest scale and most complete implementation of BIM in the Australian commercial office sector at the time.

The project is notable for using BIM throughout the design, construction and operation phases of its development, and also for the use of BIM by the entire project team, including all consultants, subcontractors and the head contractor.

Management strategies and innovation allowed the comprehensive use of BIM despite the lack of accompanying developments in Integrated Project Delivery (IPD) contracting, allowing BIM to be progressed without the then structure of the Australian construction industry becoming an obstacle.

DESIGN STAGE The project had very high sustainability aspirations, targeting a world-leading 6 Star Green Star rating. In order to achieve this, rigorous simulation and analysis was undertaken, using a range of specialist software, and utilising the data within the BIM. Early sustainability analysis, including solar gain and thermal loadings, atrium and double-skin façade air flow dynamics, glare and daylighting was conducted to optimise the design and prove that the performance requirements could be met. The natural ventilation of the atrium using ‘stack effect’ was examined in detail. The parameters for the follow-the-sun system of venetian blinds were studied, leading to the development of the automated system used in the building, which prevents direct solar penetration, while maximising the views.

These models were then exported to a number of ‘best-of-breed’ applications for specific tasks using interoperable transfer methods.

Thermal Performance

Radiance Glare/ Daylighting

Airpak CFD

Air Change

Facade Model Microstation

Daylighting

Ecotect ESD Model

Glare

Atrium Daylight

View Analysis Visualisations Architectural Model

Shadow Studies

Tenancy Model

Context Model

Architectural Documentation

Fire Modelling Strand 7 Finite Element Analysis

Structural Model

MEP Model

BIM

Structural Documentation

Services Documentation

Ram Concept PT Floor Analysis

1 Bligh design phase model and application links. Image courtesy of Architectus.

Shadow studies, view occlusion studies (60 per cent of the area has direct lineof-sight to outdoors), and sun penetration studies were direct from BIM, which was also used for analysis of accessibility, firerating and building code compliance. The atrium lifts, sightlines to the mid-level plant room and the modular bathroom design were examined in great detail within BIM to ensure the best design outcomes and maximum prefabrication potential. Within the basements, plant rooms were highly coordinated to minimise the space occupied and the volume required to be excavated.

Structural analysis was also performed in conjunction ensuring the maximum efficiency in materials was gained during design and construction. Finite element analysis and slab

BIM was implemented on 1 Bligh with the vision to deliver key benefits to the design and construction coordination and to enable future adaptation to building management and operation technologies.

Facilities Management

Construction Sequencing

plate deflections used the BIM as a base model for the complex calculations required by the building design’s split core, full height atrium and six metre cantilevers. During design development, BIM was used to refine the design and positioning of the complex services.

A strategy for BIM integration was developed

by Architectus and implemented by the key design consultancies. Independent primary models for each major discipline were crosslinked in their authoring application. This was simple to execute, with clear lines of authority and responsibility.

Architectus initiated the BIM and provided it as a template to all parties, with resolved coordinate systems and naming conventions.

All architectural documentation, including schedules, was produced direct from the BIM. Visualisations were produced using the integrated capability of Revit, or with interoperation with 3DS Max. BIM needs to be adopted early on the project and be an agreed way of working between all consultants. In a collaborative environment there is a certain degree of goodwill that is required as it is often another party that is the immediate beneficiary of a task.

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Solar panels are integrated into 1 Bligh’s roof.

H.G. Esch courtesy of Architectus

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The central atrium extends 130 metres to the full height of the building H.G. Esch courtesy of Architectus

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CONSTRUCTION STAGE BIM was used in the construction process as a communication and coordination tool, allowing any design amendments during this phase to be developed with greater confidence. This methodology was also used to reduce waste and rework on site, and resulted in a large reduction in requests for information from subcontractors, and the elimination of subcontract variations.

Architectus was appointed as BIM Managers at the commencement of construction to orchestrate the collaboration process and to provide technical expertise, protocols and standards. Model creation was performed by all trade subcontractors. These models would then by combined with the architectural and structural models and used for clash detection and coordination. Regular clash reports were produced, identifying each clash with a unique identification number. In order of priority and consequence, clashes were worked through in design coordination meetings, where project team members could determine the best resolutions to the issues. The trade models were then modified to reflect the design solutions. The process would then be repeated in the next cycle. More than ten thousand clashes were resolved in this way.

The assignment of unique identifiers to each clash allowed for each clash to be tracked through time, and ensured that issues were not allowed to remain unresolved. It was also a powerful design management tool, identifying those trades or parts of the building that were falling behind in dealing with problems.

Architectus and the structural engineer continued to develop construction documentation derived from the BIM. The trade BIMs replaced most shop drawings, and the clash review and coordination process replaced traditional shop drawing review. The combined BIM was made available on site, on a laptop accessible to all, to allow for a clear understanding of the design.

In order that the BIM mandate be met, and that a complete as-built model could be produced, Architectus devised strategies that would allow for the involvement of the entire project team. This included the development of tailored training programs, and strategic staff secondments which enabled the transition to BIM within many of the subcontractor organisations—most of which have now embraced BIM as a mainstream workflow.

OPERATION STAGE BIM now forms the platform for linking the sensors and controls of 1 Bligh’s Building Management System (BMS) and is the basis for operation maintenance, and management of the facility. Currently the information captured in the base as-built model—which combines some 35 separate models from 32 trades and disciplines—is being linked to a facilities management database, which will provide a facilities management dashboard for the property. This will allow for viewing of the underlying information in 2D and 3D formats with attached object information, rapid connection to element

data sheets, real-time monitoring of building performance, the generation of work-orders, tenancy management and similar features of sophisticated facilities management systems.

1 Bligh Street has become an exemplar of collaboration based around integrated building models.

WHAT’S NEXT? As a result of our experience gained on 1 Bligh, in setting the strategic objectives for BIM, orchestrating the collaborative process and deriving the maximum value from BIM, Architectus has established a separate specialist enterprise: BIM Consulting (BC).

BC is an independent professional services consultancy providing expertise in the field of BIM—helping clients save money and time, reduce risk and improve quality through better access to real-time data coupled with more effective communication and collaboration.

Using a consultative workshop process, BIM Consulting devises project and organisation specific strategies to deliver the benefits of BIM. Drawing on our technical expertise, and with our understanding of client needs and BIM opportunities, we identify BIM objectives to be pursued and the required tasks and standards required to deliver value from BIM. Rodd Perey Principal and Group Design Technology Manager Architectus

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Balconies provide access to fresh air H.G. Esch courtesy of Architectus

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Consulting Matters Features

Taking leadership in a digital economy The Internet has transformed the Australian economy over the last 10 years, and is poised to play an even greater role in our daily lives and in business as Australia positions itself to become a leading digital economy.

The pace of technology change is growing exponentially, and in the digital age, the only constant is change.

Disruption can sneak up unexpectedly.

In your industry, how will you know that disruption is coming before it’s too late? Will you know your competitor in a global market that disrupts existing industry and country boundaries?

As a nation, we need to ask: are we simply building better ways of delivering the same products and services, or are we creating truly new and different business models?

Companies that miss this distinction are at risk of becoming irrelevant in the digital economy.

Realistically, digital creates more opportunities than dangers. As leaders, the choices we make will be crucial in whether Australia takes a position of leadership at the forefront of this change.

Organisations set to win in the digital economy share five characteristics they: invest in new capabilities over old business models; treasure their customer relationships; have become fast and agile; know their true competitors; and invest in talent.

Whilst the natural starting position for most incumbents is problematic, there are emerging examples of success providing guidance for others.

One of the first keys to succeeding in the digital economy is investing in new capabilities and not old business models.

For most corporations, the majority of capital spending is still funnelled into existing business models: management is comfortable with the lower risk, more immediate payback of such investment.

Increasingly though, the shift from physical to digital assets such as customer and operational data, makes ‘lateral’ capabilities become more important.

These tend to be industry agnostic and include for example: personalised offer creation, proactive customer needs identification, multi-channel sales and service management, API-based technology

As a nation, we need to ask: are we simply building better ways of delivering the same products and services, or are we creating truly new and different business models? platforms, online community management, knowledge management, and social collaboration.

has negative Net Promoter Scores making customers less open to new products and services from their providers.

Whilst sound investment is one thing, it cannot be overlooked that customer relationships are the lifeblood of any organisation. But in the old economy where switching and search costs for customers are relatively high, this is too often forgotten.

Incumbents are often tempted to improve profits the lazy way by adding extra fees and increasing prices without enhancing the value they add to their customers.

Another important aspect is the ability to become fast—and doing so by being agile.

The pace of the digital economy can be staggering. However unfortunately, traditional corporate processes and tools are not designed for frequent, rapid decision making as most investment decision tools were designed in the industrial age.

Therefore it doesn’t come as a surprise that large sections of the Australian economy

As an example, Net Present Value and other risk based return evaluation frameworks penalise innovation and longer-term investments, but rarely consider the

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opportunity cost of not acting and leaving a new field to a competitor.

Annual planning processes focused primarily on performance over the financial year and against a predetermined budget provide little room to react to new insight and new competitors throughout the year.

In the digital economy—as traditional value chains that were held together by physical limitations dissolve and new, networked based competition forms—there is an increasing possibility that past competitors may become future partners, and current customers may become future competitors.

All too often incumbents forget to look beyond their traditional boundaries and identify their true competitors. These companies thus stand to miss the most important competition of all: that of substitutes.

Many times substitutes are free or much lower cost to customers than traditional products, and they tend to be written off by incumbents as ‘unsustainable’.

Being aware of the impact of changes in the digital economy also extends to employees.

Now, the ability and willingness to identify and develop talent is even more important than it has been in traditional sectors— particularly when many of the skill sets that are all of the sudden front and centre did not exist only a few years ago.

Employees with experience in digital roles are often tempted by the excitement of overseas technology hubs, making retention of these professionals an important goal for organisations.

Australian organisations who continue to make the most of their current business model, but also invest in new capabilities and future business models will thrive as our economy becomes ever more digital.

If Australia’s corporate leaders heed the opportunities rather than fear the change, Australia is in for a prosperous future.

Those winners are not afraid to invest ahead of consensus, and may well be rewarded with surprise successes whilst their more cautious peers may be left behind struggling with a high, inflexible cost base that is no longer supported by a leaner, faster economy.

Steve Hallam Partner Deloitte Digital

Customers will reward those who invest in line with their needs and expectations and punish those who believe it’s enough to rest on past laurels.

Employees with experience in digital roles are often tempted by the excitement of overseas technology hubs, making retention of these professionals an important goal for organisations.

Gerd Schenkel Executive Director Telstra Digital

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Positioning Australia for Big Data Buoyed by predictions of productivity gains, soaring profits and exciting new opportunities, government and big business has jumped on the ‘big data’ bandwagon with great gusto.

The digital revolution continues to spawn complex and voluminous data, both structured and unstructured, from a number of disparate sources. Every one of us produces digital data in our everyday lives including data generated by the machines we use such as real-time data from sensors; our transaction records; and social media sites.

Effectively extracting, analysing and making sense of the mind-blowing amount of information available has become a major focus for government and industry. For government, it provides an opportunity to garner important insights about the effectiveness and efficiency of policies and services, while companies will glean a better understanding of their customers, enabling personalised and targeted offerings.

While computing technologies used to analyse, store and process large quantities of data have become more accessible and cost effective, there remains a significant hurdle to leveraging big data: a major skills gap for data scientists with experience in big data analytics.

According to the American information technology research and advisory firm Gartner, by 2015, big data demand will reach 4.4 million jobs globally, with two thirds of these positions remaining unfilled. Here in Australia, industry is teaming up with our universities to offer new and reworked courses, majors and degrees in a bid to tackle the acute shortage of big data experts.

Industry and the research and academic sectors are starting to invest heavily in the skills, technologies and techniques involved with big data analysis.

Though big data has become somewhat of a buzzword, it’s actually something we in Australia have understood for a long time.

As a country which is a continent with a

NICTA is currently working on a number of projects of high importance to the NSW economy in areas such as transport, infrastructure and logistics and security and environment sparsely-distributed population, Australia has needed to measure, monitor, collect and model data for decades. Over the years we have seen climate models developed by the Bureau of Meteorology, the invention of the black box in Melbourne in 1957, and the compulsory collection of mining data through Geoscience Australia.

What is new and exciting however, is the enhanced computational power and massive data storage capabilities now available; and perhaps more importantly, the growing ability to fuse varied data sources and apply sophisticated data analytics to actually make something more of all this information.

National ICT Australia (NICTA) is Australia’s leading dedicated Information and Communication Technology (ICT) research and commercialisation body and is funded by federal and state governments and universities. NICTA is regarded as a strategic investment by the NSW Government as it solves major challenges facing industry and government through advanced ICT research including, most importantly, data analytics. The body is currently working on a number of projects of high importance to the NSW economy in areas such as transport, infrastructure and logistics and security and environment.

In my review of Coal Seam Gas (CSG) activities in NSW, I have recommended the creation of a whole-of-government repository for environmental data. The independent review, which is ongoing, found there is a vast array of data kept by industry, researchers and by government agencies— including spatial, numerical, photographic and

written reports in many differing formats— but little in the way of an open and common approach to data collection and management.

As such, I’ve recommended the NSW Government set up a repository for all state environment data, including all data collected according to legislative and regulatory requirements associated with water management, gas extraction, mining, manufacturing and chemical processing.

Such a repository would facilitate better compliance and monitoring of CSG activities, and increase community trust. As a result, commonwealth, state and territory resources and energy ministers agreed to look at options for establishing a national environmental data repository at a meeting in Sydney in December last year.

Governments are now beginning to recognise the value of their data assets and that making them available to third parties could lead to increased productivity.

The NSW Government has already taken steps to make its datasets available to the public and industry. Its Open Data Policy aims to simplify and facilitate the release of appropriate data by state government agencies; make explicit its commitment to open data and open government; create a practical policy framework that enables high-value datasets to be released to the public; and help agencies in understanding community and industry priorities for open data.

Mary O’Kane NSW Chief Scientist & Engineer

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The digital industrial change: Are you ready to throw away the rulebook?

All businesses and consumers are on the cusp of the digital industrial change that will touch everyone, and everything we do.

Industries will undergo a digital transformation that will not only change how we search, consume and leverage information, but it will revolutionise how machines interact with each other to collapse delivery, manufacturing and construction times. Digital transformation will come in various flavours depending on industries but one thing is for certain: it’s on our doorstep and business leaders need to begin to ask themselves, “How ready are we?”

Many will be familiar with Siri, the digital personal assistant sometimes referred to as a ‘knowledge navigator.’ There is varied opinion about how well products like Siri perform but we need to break it down to its fundamental function. You give it an instruction; it trawls the vast information available on the Internet and returns a result in not hours or days, but seconds. As business leaders, we need to be looking beyond what knowledge navigators do today and take a strategic interpretation of what it may be capable of producing in the future.

Fast forward five years. You need to design a treatment facility or building and you reach for the knowledge navigator and then submit a request. The device or software trawls your thousands of files and because you were a progressive company years earlier, you tagged or coded your information so that it could be discoverable, sorted and compiled. It is now possible for your design to be produced in hours, rather than days or months. And all this work can be completed with minimal labour input.

The knowledge navigator is only one of many aspects of the digital transformation that will impact the economic engine of businesses and provide opportunities for companies to introduce disruptive business models.

The key element of this transformational

change will be the preparedness of business leaders to have paradigm shifts in thinking and approaches to challenge every traditional model we know today.

INTERACTIVE CONTENT Over recent years there has been rapid development in 3D type technologies for example, movies, CAD and gaming and these will continue to evolve into immersive and realism type technologies. The gaming industry has been leading the way in immersion technology, and has now begun to infiltrate other commercial industries: with designs and models now constructed in full virtual reality. These models will enable people to virtually walk through a facility, pick-up and change parts. We see immersive technology assisting in the visualisation of final designs, community consultation studies and training of operational and maintenance staff who can be taught how to operate, change equipment and familiarise themselves with safety requirements before being deployed into the field.

MACHINE TO MACHINE AND INTELLIGENCE SHARING Machine to machine communication is not a new idea and is evolving into the concept of ‘the Internet of things’. In essence, ‘the Internet of things’ is where most inanimate items have the ability to communicate or interact via sensors with each other without human interaction. With the decline in the price to manufacture digital sensors, most items manufactured today can and will have imbedded sensors, with intelligence that can be coded at a future date. For example in the not too distant future we will have vehicles that have digital dialogue with traffic systems operating in real time to route traffic and ease traffic congestion.

Industries will undergo a digital transformation that will not only change how we search, consume and leverage information, but it will revolutionise how machines interact with each other to collapse delivery, manufacturing and construction times.

The Digital Network, knowledge at your fingertips.

Image courtesy MWH Global

DO YOU REALLY KNOW WHO YOUR COMPETITORS WILL BE? In the new industrial economy, digital transformation has become a true enabler to many businesses, lowering and in some cases removing the barrier to entry into new market segments and industries. Timescales to build a knowledge base, recruit a workforce and acquire manufacturing tools and techniques will be accelerated by leveraging digital time. With this availability of information, companies you know least about become the biggest threat to your market share.

There are many other changes that will continue to disrupt businesses: the rise of mobile devices, use of instant social media to reach customers and influence your brand, the centralisation of data and leveraging large data sets for business intelligence to name a few.

Our thinking and approach to digital developments across various industries is linear and based on historical trends; however, the digital industrial economy will run on digital time, which runs and evolves at a much more accelerated rate.

With this accelerated change and the wider technology developments, leadership groups and businesses will need to challenge themselves on how they prepare to compete in the new digital economy and where their competitive advantage will come from.

Giovanni Ambrosini Asia Pacific Regional Director of IT MWH Global

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Frontiers of planning: online engagement Linking their digital worlds to ours The rest of us sit in the “I should get involved but I’m too busy”, the “that is kind of interesting, but not interesting enough to make me do anything about it”, the classic “I planned to go but I forgot” and of course a special mention to those who fit in the ‘oblivious to the entire situation’ category.

It’s this larger group of people that we are missing from traditional engagement methods, yet they are the most important to ensuring representative input is fed into the planning processes.

We understand that these missing stakeholders are looking for ease of use, want to give and get information quickly, and are digitally enabled. Combining these three elements has resulted in the evolution of e-engagement.

Stakeholder workshop for the Cessnock CBD Masterplan. Photo courtesy of Arup.

There is no escaping the fact that new media and Information and Communication Technology (ICT) are enabling greater depth in community engagement beyond more conventional methods.

The emergence and evolving nature of these technologies creates a perfect platform for digital storytelling as it makes the invisible ‘visible’, or at the very least allows engagement specialists to capture data previously not within reach.

In Arup’s case we have developed a Collaborative Community Map which allows the engagement process to take place from anywhere that has access to a digital device.

Using a standard Internet browser and Google Maps as the source for maps, people can log notes and feedback to identify issues or put forward questions they may have regarding a project.

The tool has been used on projects with Roads and Maritime Services (RMS) in NSW

on the Pacific Highway upgrade between Woolgoolga and Ballina. Over 80 comments were submitted through the interactive map of the project site, compared to six postal submissions. This crowd sourcing of feedback has resulted in a fantastic overview of the local community’s thoughts on the upgrade. As the tool is interactive and live, we were also able to address issues raised by the community the same day they were raised, which helped develop positive relationships between RMS and the local community during what can be an invasive and difficult development.

It is important that we continue to develop new ways to engage with our stakeholders.

By exploring digital tools we can not only crowd source more information but we can respond to critical issues and identify trends in real time. The boundaries are being continually pushed into exciting new horizons and as a result, are redefining community engagement as we know it. This can only make for better projects and engagement experiences.

Marissa Powell Senior specialist Arup

An excellent example of this is the way bespoke e-engagement and spatial mapping tools are being used to enhance stakeholder and community engagement processes for planning projects. This approach does two things: firstly it broadens the reach of engagement programs resulting in more representative datasets, and secondly it provides this data in formats that can be easily integrated into planning processes.

People who attend stakeholder and community engagement activities often fit into one of three categories: retirees and people with time of their hands, people who stand to lose something of value to them, or people who are passionate about a cause or issue. They are the ultra-motivated; the people who turn up to meetings and displays, and as a consequence they skew our engagement data as they are not representative of the broader population.

Screen capture of the Collaborative Community Map being used on the Pacific Highway upgrade. Image courtesy of Arup.

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BIM—offering a future in the digital economy In late January in Davos Switzerland Tony Abbott made a speech at the world economic forum in which he repeatedly referred to free trade and the pervasive nature of the emerging digital economy.

His speech is a precursor to the content of the upcoming G20 conference that will take place in Brisbane later this year.

Free trade and the digital economy will be the theme for the global conference and Building Information Modelling (BIM) promises to be front and centre in the press yet again. This is a convenient coincidence, considering BIM supports free trade and collaboration and is very much at the changing forefront of the digital economy as far as the built environment is concerned. However, one of the biggest challenges we face is that most sectors of the planning, consulting, construction and maintenance industries continue to grapple with how BIM applies to their discipline and their continued existence throughout the digital revolution.

BIM itself is a slight misnomer as it implies buildings are the only beneficiaries. In truth, the uptake of BIM is predominantly in the property and urban development sector within the construction industry, however in more recent years BIM has been applied as much to horizontal assets such as roads, highways, canals, train lines and tunnels, as it has to traditional vertical assets.

This is evident globally, where BIM has been applied to well-known infrastructure projects such as the Crossrail Project in the United Kingdom, the upgrade to the Panama Canal and the redevelopment of Denver International Airport.

So, how is BIM impacting as part of the larger digital economy in Australia? There are several groups, representing various portions of the industry, working hard to define what the application of BIM means for their members and how BIM could benefit them.

However, leveraging benefit to any one section of the industry only disadvantages the remainder of those involved. Through groups like Collaborate, the industry is applying BIM thinking to its adoption and implementation across the entire supply chain. This allows each consultant, service provider, contractor, and supplier to focus on their individual strengths while collaborating to deliver an asset that is greater than the sum of its physical parts—the virtual asset.

BIM image courtesy of AECOM

Over the next 12 to 36 months we will see a significant shift in the way projects are developed, designed, constructed and operated. BIM has the potential to be incredibly beneficial to industry and the community, and the public and private sector must engage to ensure its success. As is, several state level health and transport bodies have made statements regarding the requirement of BIM on their projects and, at the Commonwealth level, Department of Defence are advocates of BIM as they seek to introduce collaborative contracting arrangements to facilitate efficient process across their supply chain.

crowdsourcing delivery are all advances which have sprung from our exposure and leveraging of exponentially larger pools of information. This, coupled with the advances in technology, allows our industry to take significant steps toward automation and will allow us, in turn, to focus on the environment in which we place assets and their interaction within the community. All this because we have measured twice (digitally) and built once (physically) by applying BIM.

A joint Federal and State government mandate would provide the entire supply chain with the incentive to invest in the tools to work in a BIM environment, and focus on the establishment of common standards from where the industry can move forward as one.

Hindsight is a wonderful thing. It has shown us that true innovation has always sprung from genuine need. The industrial revolution began in the 19th century and we have already entered the digital revolution in the 20th century. Can we believe that the difference between the two will be more than a commercial gain in both the climate and digital economies? Hopefully this burgeoning digital revolution will be more self-aware than its industrial predecessor.

BIM is a reflection of the ever-expanding influence of ‘big data’ and its impact and change on just one industry in construction and property. The interconnectedness of data, the application of manufacturing process, cloud-driven projects and

Suibhne Cullen BIM Lead for NSW & QLD Project Information Manager AECOM

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Consulting Matters Features

In many cities rising traffic congestion and the sustainability agenda has brought renewed focus to public transport utilisation, and expansion of the network and its stations are no longer the only solutions to public transport issues.

Features Consulting Matters

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Smarter mobility Compared with other industries, public transport might seem to be progressing as slowly as a suburban commuter service rattling its way from one station to another.

Automotive technology, by contrast, changes constantly: in the past decade GPS, hybrids, parking sensors and other innovations have flourished. Each time you buy a new car, you will notice a host of new features. Progress is apparent in the aviation industry too, with advances in in-flight entertainment and communication, fancy seats that turn into flat beds and quieter and more efficient engines.

Trains, buses and ferries appear to have changed a lot less.

Obviously this comparison is not entirely fair. Firstly, people buy their own cars and hence pay a lot more attention to automobile innovation. Car manufacturers are operating in a highly competitive environment, using new features as a way to differentiate their products. Nobody really buys their own trains or ferries. Also, airline passengers have a choice of various carriers and are far more likely to be aware of the merits of rival fleets than they are of different types of trains.

In addition, trains and their infrastructure have longer lives, which mean technology takes longer to become widespread. The planning horizon for the approximately 1,748 kilometre High Speed Rail network between Brisbane-Sydney-Canberra-Melbourne for example extends to 2050 and may be fully operational in 2065. Railway planners and engineers have to consider durability and

longevity, while car manufacturers want you to buy a new car every two years.

However, there is no shortage of new ideas in rail, and they are steadily making their way out onto the Australian shores. Better technologies are delivering everything from improved ticketing and route planning to shiny trains designed to glide on air at an astonishing 500kph. Energy efficiency and safety are up, and derailments and fatalities are down. And if you have recently undertaken one of the million trips made to, from or within Melbourne or Sydney, the chances are you used a smartcard to swipe in and out of trains, buses or, perhaps, the ferry in Sydney. Other ‘intelligent transport’ systems currently in use in other parts of the world include new contactless payment technology, known as ‘pay-and-wave’. Paying congestion charges via the Internet, using an access fob to hire bikes from the city’s popular cycle-hire scheme and information you require to complete your journey following you around on a wall surface, are yet further examples of how digital media technologies can improve customer experience on public transport. The digital technologies highlighted here are in many cases already operational in small and large scale applications, and are also used for facial recognition with biometric data integrated into passports and augmented reality information applications on many smart phones.

In many cities rising traffic congestion and the sustainability agenda has brought renewed focus to public transport utilisation,

The planning horizon for the approximately 1,748 kilometre High Speed Rail network between Brisbane-Sydney-Canberra-Melbourne for example extends to 2050 and may be fully operational in 2065. Railway planners and engineers have to consider durability and longevity, while car manufacturers want you to buy a new car every two years.

and expansion of the network and its stations are no longer the only solutions to public transport issues. As the information around us becomes ever denser, access to high quality facts has gained increasing importance. Within public transport environments, effective provision and access to information shifts greater control to the customer. That in turn enables them to make informed decisions about their commute and helps them manage their time and experience.

The design and user acceptance of mobile phone apps demonstrates the convenience of access to location-based real time information. Not only does this information travel with you, but it can also be responsive to other context specific information as your environment changes.

The implementation of digital media design-based concepts within the public transport arena is both critically relevant and challenging. In Korea for example, Seoul’s Metropolitan Government linked up in 2004 with the electronics firm LG Group, along with credit card and telecommunications companies, to launch the ‘T-money’ smartcard, which is accepted on all types of transport and can also be used for purchases from vending machines and thousands of convenience stores, fast-food restaurants and car parks. This kind of venture not only requires collaboration among authorities, but also industries, including companies that may usually be in competition. In addition, the sheer scale of transport networks and its public nature means the system must remain operable, well maintained and managed. This is a key constraint to implementing new technologies.

The digital economy is already an essential part of our society. It has already changed our life and has the potential to transform it even more.

Katharina Gerstmann Manager Transport Beca & Executive Chair Railway Technical Society of Australasia (RTSA)

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Consulting Matters Protecting your business

March quarter 2014 Welcome to Forecast: a quarterly publication that keeps Consult Australia members up-to-date with the latest market trends in building and construction.

Download the Forecast quarterly report from the Consult Australia website World Economic Growth: 2013, 2014 & 2015 China

Overview In its economic outlook update of January 2014, the International Monetary Fund lifted its forecast of world growth in 2014 from 3.6 to 3.7 per cent and forecast growth of 3.9 per cent in 2015. With only a slight slowing in China, growth is expected to accelerate in both the advanced and developing economies.

India ASEAN-5* Developing economies World United States Advanced economies

Euro area

We are still forecasting growth of 2.4 per cent in 2013/14 and 2.7 per cent in 2014/15. Such growth is below the 3 per cent average achieved over the past decade, largely because, with current policy settings, investment in non-resource industries is unlikely to grow fast enough to compensate for the coming decline in investment in mining and energy.

* Indonesia, Malaysia, Philippines, Singapore & Vietnam

-1

The chart opposite, in which countries and regions are ranked by forecast growth in 2014, shows growth in 2013 and forecasts for 2014 and 2015.

In February, the Reserve Bank forecast that the Australian economy would grow by 2.5 per cent in 2013/14 and by 2.25– 3.25 per cent in 2014/15. The mid-point of the 2014/15 forecast, of 2.75 per cent, was higher than the 2.5 per cent mid-point of the Bank’s November forecast.

2013 2014 2015

Japan

0

1

2

3

4

5

6

7

8

% change on previous year

Source: IMF, January 2014

Australian Economic Growth Percentage increase in real GDP

% 4.0

3.6%

forecast

3.5 3.0

2.7%

2.5

2.4%

2.7%

2.0 1.5 1.0 0.5 0.0 '05-06

'06-07

'07-08

'08-09

'09-10

'10-11

'11-12

'12-13

'13-14

'14-15

Source: ABS, author's forecast

Consulting Matters

2014 FUTURENET

Networking

Leadership

Comm u

nicatio

n

LIMITED PLACES AVAILABLE The 2014 FutureNet Business Leaders Course (now in its eighth year) will hone your future leader’s professional networking and leadership skills. The course develops core business, management and teamwork skills through a variety of training sessions, ranging from effective communication, introduction to finance and negotiation.

The FutureNet Business Leaders Course is now offered in Sydney and Brisbane.

To secure your registration contact Consult Australia:

Sydney: Alexia Lidas on 02 8252 6708 or email nsw@consultaustralia.com.au

Brisbane: Stacey Rawlings on 07 3020 3403 or email qld@consultaustralia.com.au

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Consulting Matters Protecting your business

Going overseas?

Insurance cover in overseas jurisdictions Business has been good and the mining boom has allowed a great many consultancy firms to grow rapidly in the last decade, but as the boom slows (at least for the time being) and globalisation continues, consultants may increasingly look overseas for their future growth opportunities.

Setting up a subsidiary in a foreign country involves a great deal of energy and red tape, not least in relation to issues such as sanctions, but also ensuring your insurance programme meets your needs, complies with local laws and will pay your claims should the worst happen.

For policies like public liability and professional indemnity, this can be fixed simply. Advise your insurer where you are opening a new office and check your policies cover you not only for working there but also for claims brought against you in a court at that location. In insurance jargon, this is the territorial and jurisdictional scope of the policy.

Many insurers extend the scope of their cover to most countries around the world. For example, a policy arranged with an insurer in Australia or London will usually provide cover for work undertaken by, or claims made against the policyholder, in all areas of the world.

The usual exception is the United States or North America (which can normally be covered for an additional premium). Therefore should your business expand to New Zealand or the UK, your current policies might already provide sufficient cover and all you need to do is tell your insurers about your new overseas operation.

However, whilst at face value your policy might cover your business wherever you choose to operate, some countries have regulations in place that limit the extent to which a local enterprise can be insured by an insurer that is not authorised and regulated in the relevant jurisdiction.

Penalties can be imposed upon the insured, the insurer or the broker and in some cases can be custodial as well as financial. The payment of a claim to an overseas subsidiary in these circumstances can also be made problematic due to punitive tax liabilities being imposed and local legislation aimed at curbing money laundering.

This issue is a complex one as regulations are unique in different areas and constantly change. However, some countries where this is an issue currently include The United Arab Emirates, Malaysia, Brazil, China and India, to name just a handful. In addition to regulations, there are some territories (notably the Middle East) where your client may insist that you procure your policies from an insurer appearing on their own ‘approved’ list. It is commonplace for such clients to withhold a consultant’s fees until they see written evidence that you have complied with such a requirement.

This might sound like heavy-handed protectionism, but interestingly, similar (although milder) laws exist in Australia that restrict an Australian insurance buyer from buying insurance from a nonAPRA regulated insurer (with an exception being made for Lloyd’s Syndicates). Only buyers with very large enterprises with annual revenue exceeding AUD$200 million or more than 500 employees, or who satisfy a test in regard to the complexity of the risks being insured are allowed to use what the legislation called Unauthorised Foreign Insurers (UFIs). These rules are intended to prevent cover

being placed with dubious insurers rather than just to keep premiums on-shore, but must be followed all the same.

Some insurers can help you to overcome these regulatory hurdles by issuing a policy in the country concerned from their local office on the ground there, or through a local agent or affiliated insurance company.

Many of the large international insurance companies have offices all around the world that can facilitate this.

A local policy can be arranged in one of two ways—a new policy can simply be arranged with a locally regulated insurer to give cover to the amount that local laws require and that your contractual obligations may dictate. For example, you might be required under the terms of a client contract to hold public liability and professional indemnity for USD $2 million and to arrange workers’ compensation insurance for your local employees. You might opt to simply buy these policies locally in addition to insurance you already have in place.

A second way that is a little different, but can be more cost-effective, is to arrange for a so-called fronting policy in the country concerned.

A fronting policy is one that is issued locally by a locally admitted and regulated insurance company, but which is arranged in such a way that your main policy still provides the actual coverage. This is achieved by the local insurer being able to recover any claims payments they make through your ‘main’ policy. By arranging cover in this way, the local insurer does not hold any actual risk as they are repaid by your insurer should a claim be suffered locally. This means the local insurer does not need to charge a premium and only charges for the administrative costs of arranging the local fronting policy (often with a decent margin added).

Looking at risk more broadly, you might also need to consider medical insurance for any expatriates you base in foreign countries and cover for perils such as kidnap and ransom payments—a grim reality in some areas where mining and infrastructure projects are ramping up, such as in Africa, parts of Asia and central and southern America.

When considering an expansion into an overseas area—whether it be simply working on a project there or setting up a local presence—you should engage your insurance advisor at an early stage to identify local issues particular to the jurisdiction involved and to gauge the costs you might encounter in properly managing your risk and insurance considerations. Arranging compliant and effective insurance coverage can be a lengthy process in some areas and left to the last minute might prove very stressful. Varied and constantly changing rules around the world make the issue a tricky one. However, with planning and sound advice, opportunities in even the most remote countries where new opportunities are evolving may now be grasped with confidence.

Chris Moore National PI Manager FINEX Australasia

Protecting your business Consulting Matters

TESTIMONIAL DOUGLAS PARTNERS IS AN AUSTRALIAN ENGINEERING AND RELATED CONSULTING SERVICES FIRM SPECIALISING IN THE FIELDS OF GEOTECHNIC, ENVIRONMENTAL AND GROUNDWATER ENGINEERING. AT DOUGLAS PARTNERS, WE BELIEVE THE KEY TO PROVIDING PRACTICAL, COST-EFFECTIVE AND TIMELY ADVICE INVOLVES LISTENING TO OUR CLIENTS’ PROBLEMS, IDEAS AND OPINIONS, APPLYING THE KNOWLEDGE GAINED FROM OUR 50 YEARS OF EXPERIENCE AND 70,000 PROJECTS AND RESPONDING QUICKLY WITH HELPFUL HANDS-ON SOLUTIONS.

Douglas Partners first signed up with Willis over a decade ago and has received nothing but excellent service over this time.

Douglas Partners has indicated that Willis’ services and assistance in relation to contracts was second to none. The broker was noted as being very prompt and exceptionally helpful when dealing with enquiries and PI contract reviews—providing information and advice with quick turnaround and with no follow up required from Douglas Partners. They were noted to always seem “one step ahead” in the service they provide.

Willis organises regular meetings and ensures ongoing engagement with Douglas Partners to ensure that their services are accurate and remain relevant. Willis regularly helps explain the finer points of cover as it relates to the specific work that Douglas Partners undertakes.

Douglas Partners also commented on Willis’ willingness and ability to help the firm to develop collaborative and strong relationships with insurers in London and overseas markets. This process has helped Douglas Partners to establish a risk management process and relevant documentation that is specifically tailored to the firm.

Professional Indemnity question?

Consult Australia believes that it is important to support members in all aspects of their business.

We also recognise the impact that the insurance market has on Consult Australia member firms in terms of availability, affordability and quality of Professional Indemnity insurance.

Post your latest Professional Indemnity insurance cases on the Consult Australia Linkedin group and our PI Insurance Pathway will advise you on the best steps to tackle these issues.

With such a strong, healthy and lengthy relationship to use as a basis, Douglas Partners would have no hesitation in recommending Willis to other Consult Australia member firms.

“Douglas Partners has been with Willis for over a decade, which is an endorsement in its own right.

There’s a lot to be said for continuity. The continuity, and the exceptional client service that Willis provides still manages to pleasantly surprise me—it is clear the brokers are always thinking about us and how they can better help us in our pursuit of excellence.

Their customer service is exceptional and you always feel first in the queue—always a priority.”

Mike Nash Principal Douglas Partners

BRIC

Bovill Risk & Insurance Consultants

Protecting Professionals

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Consulting Matters Business essentials

Creating a winning website In today’s digital world, the Internet has become our society’s primary information resource with approximately 34,000 searches taking place on Google every second.

For any organisation operating in today’s digital world, a dedicated company website is no longer an optional extra—it is an essential part of any marketing strategy and critical to achieving success. Your firm’s website will be the first introduction many of your stakeholders have to your company and therefore it should reflect your firm’s vision and speak directly to your audience. Careful planning and development are crucial.

It would be impossible to effectively explain how to create a DIY website in one Consult Australia Practice Note. Website development is a complex and detailed process—for this reason, it is wise to engage a professional or agency to guide you through the process.

Before you engage a website developer, you need to have a clear idea of the information you want to appear on your site and how you would like it to be structured.

The first step is to do research. Consider the purpose for creating the website—what are your stakeholders’ expectations of the site? It’s important to clearly identify the site’s purpose as this will help you focus your efforts and develop the scope of the project ahead of you.

The second step is to develop the content of the website by creating a site map and preparing copy. When designing the site itself it is important to be familiar with the main elements of a site, including the header and navigation bar/s and the content area/s.

Unless you have the in-house skills to develop a website, you will need to engage a web designer or digital agency.

Selecting a web designer is a critical stage in the development of your site as—once you have selected a designer—it can be very hard and very expensive to change: you must be sure they will meet your expectations. Deciding between a freelancer and a big web design firm and comparing rates, services and guarantees are just some of the decisions you’ll face in this process.

Once you have selected a website designer, there are important pieces of information that are critical to give to them including: sites that appealed to you; copies of current marketing collateral; sitemaps; and a creative brief.

A high-quality, easy-to-use website will make your business accessible to existing and new customers. You only get one chance to make a first impression, so make it count!

Voltaire Corpuz Consult Australia

Want to read more? This is an abstract of just one of the many Practice Notes available for members to download, free from the Consult Australia website.

Consult Australia Practice Notes Consult Australia’s Practice Notes are a collection of the available expertise in areas of professional ethics, liability and insurance, quality assurance, legal advice, personnel matters, general and financial matters, appointments and contracts, workplace health and safety, and workforce diversity and inclusion. The Practice Notes are available to members only and can be accessed on the Consult Australia website. www.consultaustralia.com.au

Business essentials Consulting Matters

A selection of top websites as ranked by Bowen Craggs & Co.

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Consulting Matters Business essentials

Does your diversity program measure up?

In an increasingly measurement-based economy, where all things must be justified in terms of improved efficiency, productivity or return on investment, managing diversity is not immune and must be justified in equally empirical terms. Businesses are after all accountable to their shareholders, investors, customers and employees, and as such diversity management must be able to respond to each of these audiences in a way that is meaningful to them.

Determining the current state of diversity in your organisation and establishing goals for the future are as important as continually evaluating the success of your programs to ensure you are actually achieving what you set out to do. But measuring is not always an easy task. Team productivity, creativity and innovation can be difficult to measure, and establishing the return on investment of diversity programs can prove a challenge.

Increasingly, organisations are undertaking a diversity census or survey as a first step to better understand the demographics of their workforce. This ‘base-line’ quantitative data on the current state of their workforce assists with setting future goals.

A diversity census entails surveying employees about their socio-demographic group memberships including, for instance, Aboriginality, ageing, caring responsibilities, cultural diversity, gender as well as work/life needs and so on.

When designing and implementing a diversity census, some key issues for consideration include: • Which diversity dimensions you wish to collect data on; • How to best define each diversity dimension:  Clear

definitions and explanations of ‘Aboriginality’ and ‘disability’ are particularly important;

 ‘Cultural

and linguistic diversity’ can be ‘unpacked’ to capture information on ancestry, citizenship, country of birth, ethno-religiosity, faith and language as well as cultural identity;

• Assuring confidentiality and anonymity:  This

is particularly important in relation to sexual orientation, cultural diversity, disability and Aboriginality as employees can be reluctant to disclose due to concerns about how the information will be used;

• Including clear explanations about the purpose of the census and how the information will be used; and • Meeting privacy requirements.

Once you have a better understanding of existing levels of diversity, scorecards are a useful way to measure and report various indicators that measure an organisation’s diversity performance. A diversity scorecard consists of a select number of critical human capital metrics that can be used to measure the organisation’s diversity performance.

In larger organisations, there is often an overarching scorecard, as well as scorecards specific to particular business divisions. This makes accountability clear and so motivates change across all areas of the organisation.

While the concept of diversity scorecards is straightforward, implementation needs to be approached with care. Firstly it is important to identify exactly what aspects of diversity you want to measure to assess your organisation’s performance. Like all organisational change initiatives, this is best done through consultation and collaboration to engender support and ensure meaningful metrics. In general, diversity metrics fall under the broad headings of: workplace profile; hiring/recruitment; retention; engagement; workplace culture/climate; and customer satisfaction.

Factors to consider when determining the best diversity metrics for your organisation include: • Which diversity dimensions you are driving change around (e.g. age, cultural diversity, disability, gender, Indigenous people etc); • What specific interventions you are taking on these diversity dimensions (e.g. initiatives relating to ‘loading the pipeline’, building managerial capability or mainstreaming flexible work);

• Whether you want metrics directly linked to your organisation’s bottom line (e.g. turnover) or indirectly linked (e.g. engagement and teamwork) or a combination of both; and • The number of metrics—it’s best to limit to the critical elements, displaying these clearly and simply, so people can quickly and easily grasp the information they need to know.

When it comes to achieving outcomes on diversity, more organisations are finding that establishing diversity-related Key Performance Indicators (KPIs) for leaders and/or teams and holding people accountable to them is crucial. This includes establishing diversity goals that are tied to performance and advancement outcomes for people managers and leaders. For example, a leading Diversity Council Australia (DCA) member holds its CEO and senior leadership team accountable for achieving goals on diversity and these cascade down to senior leaders’ individual performance plans with specific goals and targets that are monitored regularly.

Finally, the importance of having a good communication and engagement strategy in place before you conduct surveys or establish reporting and accountability mechanisms on diversity cannot be emphasised enough.

Your stakeholders need to understand what you are doing and why—and if they are onboard, you will have a much better chance of showing your diversity programs really do measure up.

Dr Jane O’Leary Research Director DCA

Catherine Petterson Communications Director DCA

• What your competitors are measuring (to enable industry benchmarking); • Whether your HR systems are able to measure what you want; • What metrics have currency internally (i.e. what will grab your CEO’s attention?); • What diversity-related issues have already been identified (e.g. a higher turnover rate for women or other diversity groups or any diversity related complaints)?

Consult Australia recently signed an MoU with the Diversity Council of Australia

Business essentials Consulting Matters

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RedR Australia technical specialists, Za’atari refugee camp, Jordan 2013

Do you have what it takes? Visit www.redr.org.au water and sanitation + camp management + shelter + logistics + infrastructure assessment and repair

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Consulting Matters

Corporate social responsibility Consulting Matters

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The Village Project Beca recently played a proud role in volunteering to help provide clean and safe water to the village people of Watoto in Laminadera, Uganda.

Alastair McNabb, a civil engineer from Beca’s Brisbane office set off on a three-week journey to Watoto Laminadera, a children’s village set up to house orphan and ex-child soldiers from 2-16 years of age. Village houses typically accommodate eight children and one house-mother per home.

Alastair’s trip was arranged through The Village Project, a non-profit organisation set up in 2008 to provide rain harvesting infrastructure to vulnerable Ugandan widows and orphaned children.

Clean and uncontaminated water is so scarce in the region that cyclical bouts of severe illness and premature death are a part of everyday life. In this village in particular, the bore pump was unable to draw enough water to meet the community’s needs, so Alastair—along with several other volunteers—was tasked with building four large concrete water tanks, and to train local people in how to construct them.

The project team helped with mixing the concrete, levelling the ground with spades and hoes and collecting water for concrete and plastering. Thanks to The Village Project and the help of the volunteers, the local people of Watoto now have contaminant-free water to drink.

Alastair also provided engineering advice to the locals, including concept layouts of pipelines and tanks, assessment of rainfall/rainfall storage requirements and village water use.

Not only did Alastair enjoy learning about the local culture and the way of life in Watoto, his passion for community aid coupled with his professional skill-set enabled him to help provide a sustainable source of clean water for hundreds of local people.

Beca

Left: Alastair by the concrete water tanks; Below: Coming together and children of the village Photos courtesy of The Village Project and Beca

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Consulting Matters Our industry

Scanning new horizons Understanding terrestrial laser scanning Terrestrial laser scanning is changing peoples’ perceptions when it comes to the complexity, accuracy and efficiency in which spatial data can be captured and delivered by the modern surveyor.

The flexibility and power of terrestrial laser scanning is evident when you examine the range of applications where this technology can be employed. The accuracy and abundance of data created, the speed at which data is created and the health and safety benefits this scanning technique delivers, makes it a powerful tool across engineering and construction disciplines.

Terrestrial laser scanning captures millions of three-dimensional (3D) points across the area or object being scanned. Having this data allows designers to work directly with realworld conditions by viewing and manipulating rich point-clouds in computer-aided design software.

The point-clouds themselves are created in 3D (across the X,Y and Z measurements) and—since all laser scan points are truly 3D—the files can be viewed, navigated, measured and analysed as 3D models in CAD or 3D application software.

The potential savings generated by terrestrial laser scanning throughout the project life cycle is substantial. At the construction phase alone, it is not unusual to reduce rework costs by at least 50 per cent where laser scanning has been used to capture the site before the design stage.

With project leaders frequently relating stories of cost/time overruns caused by design solutions being based on poor, asbuilt information, it makes sense that the base survey data be provided in a compatible format (eg Revit or AutoPlant) that allows design teams to commence the project with detailed information capable of driving design and project management.

The potential savings generated by terrestrial laser scanning throughout the project life cycle is substantial. At the construction phase alone, it is not unusual to reduce rework costs by at least 50 per cent where laser scanning has been used to capture the site before the design stage.

As project teams are made aware of the benefits that laser scanning offers, their expectations from spatial data suppliers rise accordingly.

Concurrent with this change in attitude, is the ongoing refinement of technology: both hardware and software. The end result is that laser scanning technology—just as real time GPS did before it—inevitably becomes commonplace within the realms of mainstream engineering and survey projects.

Our industry Consulting Matters

We will continue to see a greater integration of terrestrial laser scanning into projects at an early stage, with the project benefits becoming even more apparent.

We will continue to see a greater integration of terrestrial laser scanning into projects at an early stage, with the overtime benefits becoming even more apparent. Across areas such as whole-of-life asset infrastructure management and in the area of re-lifing commercial and public buildings, this technology offers measurable benefits for improved performance.

CYCLONE DAMAGE ASSESSMENT When tropical cyclone Yasi struck the northern coast of Australia in early February 2011, the Lucinda Bulk Sugar Terminal (LBST) located 1,500 kilometres north of Brisbane, suffered almost $50 million of damage.

Severe damage occurred to structural, mechanical, hydraulic and electrical systems along the jetty, conveyor system, wharf and ship loader.

The 5.76 kilometre jetty has been called an engineering masterpiece, with its length actually following the curved contour of the earth by dipping two metres from the initial horizon over its total length. In providing services to Queensland Sugar Limited (QSL), Aurecon undertook damage inspection and causation advice, early advice on repair feasibility, multidisciplinary detailed design and documentation, contract packaging and expediting, construction supervision and superintendency, and commissioning assistance.

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Queensland is a leader in the bulk handling of raw sugar with some of the largest, most advanced bulk storage and handling facilities in the world. After tropical cyclone Yasi, it was essential that accurate damage assessment was undertaken on the Terminal facility to enable engineers to compare the ‘as-built’ nature of the structure to what we were looking at after Yasi.

With design teams working in different geographic locations across projects, any redevelopment design project should consider using this type of site survey as a starting point.

On many sites, terrestrial laser scanning has saved time and reduced costs across multiple stages throughout a project’s life cycle.

Mike Pinkerton Associate Aurecon

Website coming soon

Gold sponsor Consult Australia’s The Business of Sustainability website helps to guide professional services businesses of all sizes and disciplines, at any stage of their journey, towards a more sustainable business. The website will soon by live at www.thebusinessofsustainability.com.au

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Consulting Matters Industry comment

Vision with action can change the world – Joel A Baker There are a number of key strategies that could be used to bring about a more stable workload for built and natural environment professions.

Operating companies can adjust investment decisions to smooth out projects despite cyclical commodity prices. Government can adjust spending patterns to counteract private enterprise investments. Consultants can be more proactive in following trends and being more agile in re-adjusting their offerings to suit the market needs: changing the way people perceive downturns to a time to up-skill, innovate and drive efficiency in business. We should remember we are now in a global market and to use this to our advantage to both market out services globally whilst collaboratively training professionals in developing nations. Our university systems can support this by

*EXTRACT FROM QLD FUTURENET ESSAY COMPETITION WINNER’S ESSAY. READ THE ESSAY TOPIC AND CATHERINE’S FULL PIECE ON FUTURENET BRISBANE’S WEBPAGE.

working with public bodies and business to forecast and meet resource demands. A key role universities can play is teaching practical skills so our graduates come out ready for the workforce. Public bodies play a key role in being able to communicate across industries, universities, professionals and government and take a leadership role to align all the parties.

more stable workload for professions in the built and natural environment: for the benefit of ours and many affected market sectors.

Let us use this vision to collaborate across business, government, academia and public bodies to implement the strategies needed to make it a reality.

As Rudy Giuliani is quoted saying, “Leaders need to be optimists. Their visions are beyond the present.” We have a vision for a

Catherine Morar Senior Process Engineer Renewable Energy Engineering

Integrated solutions for the built environment New technologies are leading the built environment towards a level of intelligence capable of learning and adapting, and consultants best able to achieve this will be regarded highly.

I personally see integrated architecture and engineering firms the best placed to produce solutions that create places where people want to be, and that are highly functional.

Today more than ever before, there is an increasing need for integrated, sustainable and intelligent urban solutions. We need to invest our time and efforts into initiatives that achieve outcomes greater than the sum of their parts. Whether this is to do with our people, partners, new technology or

the way we engage with clients, I always encourage those around me to look for an integrated solution that yields greater value.

This might involve sharing ideas and designs, or implementing concepts such as modular construction and assembly.

We should also be providing more holistic skills training, as the distinction between urban planners, architects and engineers will diminish with the rise in integrated design firms.

Paul Morris Global Market Leader – Property & Buildings GHD

Consulting Matters

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Autumn 2014

We hope that you enjoy this copy of Consulting Matters magazine.

If you have received this magazine from a colleague and you’d like to receive your own copy each quarter, simply email info@consultaustralia.com.au.

Consulting Matters is available for non-members to purchase.

Subscribe for 12 months (4 x issues) for only $66 by calling the Consult Australia National Office on (02) 9922 4711.

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Benefits include: • Practice performance and salary benchmarking • Business development tools such as practice notes and business tips • WHS checklist • Safety in Design Pocket Guide • Networking events • Discounted education & training courses • Fortnightly newsletters featuring important industry updates and news • Discounted tickets to Consult Australia’s annual Symposium and Awards for Excellence • FutureNet – young professionals networking program

Consult Australia National Office T: (02) 9922 4711 F: (02) 9957 2484 E: info@consultaustralia.com.au W: www.consultaustralia.com.au

Last updated: December 2013

For more information on membership, contact Consult Australia’s National office on (02) 9922 4711 or via email on info@consultaustralia.com.au

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Consulting Matters Industry comment

National registration The benefit to engineers and industry is an increased public profile and a single national registration system utilising existing competency standards.

At present each state and territory holds its own perspective on registration, with QLD the only state with a comprehensive Engineers Act. In other states engineers are registered under a variety of legislation; much of which is piecemeal and does not serve either the community or the profession very well.

With the increasing globalisation of professional services and off-shore manufacturing, there is undoubtedly a need to establish a national register that will protect consumers and safeguard the community, without being detrimental to business and trade. The benefit to engineers and industry is an increased public profile and a single national registration system utilising existing competency standards.

Tailoring a system that will serve all relevant stakeholders, including the community, industry, government is complex, but the National Engineering Registration Board (NERB) is committed to achieving this.

This is a multi-faceted process, with different focal points arising from individual priorities and needs. Collaboration is critical and will depend heavily on increased communication between stakeholders: initially with state and territory governments and then federal. I have already worked to put in place processes to help strengthen and build the necessary relationships in order for the desired outcome to come to fruition.

Jamie Shelton Chair National Engineering Registration Board (NERB)

Building a better future The professions and professionals working in our industry are building a better future, but often don’t get the full recognition they deserve.

The media are our ‘eyes’ on the world however they are unfortunately often focussed on bad news rather than good.

Thus for example we hear all about infrastructure backlogs, delays and cost overruns, but rarely about the benefits of infrastructure, or the success of past projects: despite the endless success stories that could be shared.

I would say that the issue is that we need to learn how to become better communicators. A good book is by Randy Olson Don’t be Such a Scientist: Talking Substance in an Age of Style.

Olson argues that there are four layers of communication, rather like a pyramid, with the layers getting broader as they move towards to the base. At the narrow top of the pyramid is the mind, the next is the heart, then gut and lastly, the reproductive organs (which is why so many companies use romance for marketing).

We need to spend more time on the heart and gut in communicating with the public.

We do have a good story to tell. People everywhere want a better standard of life and we are the ones who can provide it.

Improve our communication and we might just start getting the recognition we deserve.

Keith Suter Managing Director Global Directions

What do you think is the most pressing issue our industry is facing?

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