Consulting Matters October 2020

AUTUMN 2020

New Constructs

28

Wellness as a catalyst to improve Workplace Culture

15

12

What if energy was free

Unlocking Private Investment with Targeted Covid-19 Infrastructure Stimulus

21

The Value of Benchmarking

2020 Awards for Excellence

Roaring 20s Thursday, 29 October 2020

Time: 6:00pm – 7:30pm (AEDT) Venue: Online – a link will be emailed to registrants prior to the event Cost: Individual Ticket $75 (Members); $95 (Non-Members) (inc GST) Online Group (Admits 10) Ticket $525 (Members); $780 (Non-Members) (inc GST) REGISTER NOW

Consulting Matters

1

CONTENTS

28

14 15

Wellness as a catalyst to improve Workplace Culture Industry updates

Unlocking Private Investment with Targeted Covid-19 Infrastructure Stimulus

Industry updates

2

Our new remote and agile workforce.

How do we embed and effectively support this shift?

SME Highlights

3

The Value of Benchmarking

21

The Grenfell Tower Legacy: New Ways of Working

24

What’s happening in Consult Australia From the President

4

From the CEO

5

State & Terriroty Updates

6

Consult Australia 2020-21 Budget Response

11

Protecting your business Introducing Cbus Corporate Super

What if energy was free

12

From CSR to Sustainability to ESG: powerful new strategies

14

25

Corporate Social Responsibility Building back better – why humanitarian engineering is critical in a post-COVID world

Features

19

26

Project case studies

Unlocking Private Investment with Targeted Covid-19 Infrastructure Stimulus 15

Wellness as a catalyst to improve Workplace Culture

28

I want to be a leader but I am not white and named Andrew

16

Kimberley Ports Authority: Wharf Extension Underdeck Access

30

New Opportunities to Tackle Enduring Problems

18

Not a member of Consult Australia?

To find out more about how your firm can benefit from membership contact Consult Australia on (02) 8252 6700 or email membership@consultaustralia.com.au www.consultaustralia.com.au

2

Consulting Matters

Industry updates

Industry updates APPOINTMENTS

INDUSTRY NEWS

NEW MEMBERS

Consult Australia would like to congratulate Tony Barry who has been announced as the new president-elect of FIDIC - International Federation of Consulting Engineers.

Tony is a former president of Consult Australia (2004-2006) and will take over the presidency from the FIDIC 2021 Annual General Assembly.

Louise Adams, Chief Executive, Australia & New Zealand, Aurecon is in the running to win CEO of the Year in the annual CEO Magazine Executive of the Year Awards in November we wish her the best of luck.

Davijaan Professional Services Essjay Consulting Engineers P&M Consulting Pty Ltd Dial Before You Dispute Woodward Dawson

Congratulations to Trevor Chiang, Asset Management Engineer, Cardno, for successfully completing the International Federation of Consulting Engineers (FIDIC) Future Leaders Management Certificate.

CONSULT AUSTRALIA

Kevin Pascoe has been appointed to the Board as a Director of the Society of Construction Law Australia (SoCLA).

Kevin is a Principal engineering project delivery specialist with over 25 years of international experience, the last 10 years of which have been with Jacobs.

International engineering, design and advisory company Aurecon has appointed Managing Director of Victoria and South Australia Angus Leitch as executive director to the Aurecon group board. In addition to his responsibility for the leadership and performance of the South Australia and Victoria business, Angus is also a member of Aurecon’s Australia & New Zealand Executive Leadership Team.

Beca Group has appointed Dr Kevin Doherty to its Executive Leadership Team, as Group Director for Transport & Infrastructure, effective 28 September 2020. Dr Kevin Doherty joins Beca from Projects Victoria, where he is currently the Chief Executive leading a team dedicated to supporting and improving project delivery outcomes on Victorian Government projects Justin Arter has been appointed Cbus Super’s new Chief Executive. Justin brings extensive experience as a CEO and senior executive in government and investment sectors which will go far in protecting and growing the retirement savings of our 750,000 Cbus members.

Billions of dollars of industrial buildings face becoming ‘stranded assets’ warns a new report by the Australian and New Zealand Green Building Councils. Green Star in focus: The case for sustainable industrial buildings warns of the increasing risk of significant industrial assets becoming stranded if they can’t show that they are low or zero carbon.

Aurecon has modelled how airport design could change, based on the 70-100 different areas of the passenger journey that will potentially be adjusted or introduced in response to COVID-19. The ‘Departing from COVID-19: flight path to recovery and reform of the aviation sector’ report provides industry insights and recommendations on smart design and adaptive planning to help airports plan for the return of international travel by restoring consumer confidence.

Beca, one of Asia Pacific’s largest independent advisory, design, digital and engineering consultancies, has announced a new software product, FACILITYtwin is designed to rethink how the operators of asset-intensive facilities interact with, manage and design their facilities. And clearly there has never been a greater need for virtual access than during the crisis that is the current pandemic.

Congratulations to Linda Gaunt who is stepping into the role of Engagement Manager. Linda is taking responsibility for Consult Australia’s membership growth and engagement, in addition to our partnership programmes and our events programme across the country.

Congratulations also to Kristy, James, and Jan. Kristy Eulenstein has become our Policy Lead for our Practice and Procurement campaign work, and becomes State Manager for NSW, and James Robertson has become our Policy Lead for our People and Pipeline campaign work, and becomes State Manager for Victoria, and Jan Irvine is taking State Management responsibility for Tasmania.

Given their expanded roles, Kristy and James will be supported by a Policy Analyst, which we are currently recruiting.

Industry updates

Consulting Matters

SME HIGHLIGHTS New Board Member representing SME interests Holly Carson has been appointed to the Consult Australia Board to increase the small business membership representation on the Board. Holly is Head of Corporate Services at Civil Geotechnical Consultants. Not only is Holly able to provide a small business perspective but will also enhance the cross section of skills on the Board through her knowledge of marketing and business strategy.

Editor

First SME Open Forum a Success!

As a new initiative, the SME Open Forums give our small and medium members direct access to Consult Australia's Board President, CEO and Policy Team. Our first Forum was held on 19 August 2020 and was a great success. With no set agenda, SME members had the opportunity to raise any and all concerns and questions.

Topics covered included PI insurance, increasing red tape and the need for pipeline transparency. Many thanks to SMEs who attended and contributed to the discussion.

These will be held the first Wednesday of every second month with no registration required. Look out for your email invite to the next one.

Mark Rock

President Gerry Doyle

Chief Executive Officer Nicola Grayson

Finance Manager Penny Clark

Engagement Manager Linda Gaunt

Reducing barriers in QLD Recently the Department of Transport and Main Roads (TMR) sought industry feedback on the barriers small and medium businesses face in bidding for TMR work.

Contract terms, payment terms and risk transfer were common themes. Consult Australia will continue advocating on behalf of members to tackle these issues. Many thanks to those members thank provided comment to David Shillington, our QLD Manager.

Dedicated SME Newsletter in SA Our SA Committee has decided to trial a new newsletter devoted to SMEs to improve engagement and to ensure topics are covered from a small/medium business perspective. If you are interested in this idea, please contact your state/territory manager.

Executive Assistant to CEO Karen Pooley

Accounts Guillaume Marchand

Policy Lead (People and Pipeline) and VIC Manager James Robertson

Policy Lead (Practice and Procurement) and NSW Manager Kristy Eulenstein

Marketing Manager Mark Rock

Database Manager Michelle O'Neill

Coming Soon – SME National Summit!

All SMEs are invited to the inaugural SME National Summit – designed by and for small and medium businesses. This online event has a impressive line-up of guests to guide discussions on the ‘new normal’ of remote working and business survival as well as PI insurance. We will also have break-out sessions covering Consult Australia’s ‘four P’s’ that is; people, pipeline, practice and procurement. Members will have free access, while non-members will be charged a fee (reimbursable against our membership fee if they join within four weeks of the event!). Check the events page of our website to find out more and register.

Corporate Designer Voltaire Corpuz

SA/NT/TAS Manager Jan Irvine

ACT Manager Caitlin Buttress

QLD Manager David Shillington

Spotlight on SME members In recognition of their engagement with our first SME Open Forum, we’d like to highlight the following SME members:

WA Manager Diane Dowdell

Editorial submissions mark@consultaustralia.com.au

Advertising enquiries info@consultaustralia.com.au Consulting Matters is produced by Consult Australia Phone: (02) 8252 6700 Website: www.consultaustralia.com.au

3

4

Consulting Matters

What’s happening at Consult Australia

From the President It isn’t often we get the chance to rewrite how we go about our lives, we don’t often get the opportunity to purposefully make changes to make our lives more enjoyable and rewarding.

This edition of Consulting Matters explores the theme of ‘new constructs.’ I’ve decided to take some creative licence and, building on that theme, talk about new beginnings.

The world has changed so much over the past six months. Overseas travel, or even the idea of having family from overseas visit for Christmas are not possible for the foreseeable future. The ways we work, relax and entertain ourselves have changed significantly.

Change hurts. It’s uncomfortable. It makes us step outside of our comfort zones and into the new. It is something that many of us, as creatures of habit, try hard to avoid.

But like the lobster that has outgrown its shell, we can’t avoid change. And usually, it’s discomfort that encourages us to adapt and grow.

My life has certainly changed since COVID-19, albeit it not as much as others around the world. Interestingly, the changes coronavirus ushered in have granted me the opportunity to create some new habits.

I have been doing more sports coaching for my kids, something I didn’t get to do too often because I was travelling so much. I have been cooking more, which is something I love doing as a creative pastime but usually I

am so stretched I can’t even think of what to cook. I have been spending more time with my wife and kids. I have been spending time with the people that really matter in my life.

And I have taken to working from home one day a week without any meetings, so I can actually get to those important but not urgent things that make such a big difference.

Earlier this week I read an article about intentionally planning the change that you want in your own life. Later that day, I spent time talking with my kids about how we can change to be more compassionate to each other. It was nice to be at home and have that conversation during the week.

There are lots of things about this new world that I am finding really nice. That’s led me to ask - how do I hang onto the things that I love about this time? How can I make this change an opportunity to create new beginnings?

It isn’t often we get the chance to rewrite how we go about our lives, we don’t often get the opportunity to purposefully make changes to make our lives more enjoyable and rewarding.

It’s interesting that amongst all of the change of the last six months, I don’t miss the travel, the 4am wake ups, or eating room service at 9pm by myself. Instead, I have noticed that

there are things that bring meaning and joy to my life that I didn’t get to do before.

In the spirit of new beginnings, I’m using COVID-19 as an opportunity to foster the new growth I don’t want to let go of. I want to be deliberate in the decision to spend time and energy on the things I have found during this time. Most of all, I want to be intentional about being kind enough to myself to have the space to do these things. I encourage you to do the same, and would love to hear what new beginnings you have made as a result of COVID-19. Share your stories with us at info@consultaustralia.com.au

Gerry Doyle President

What’s happening at Consult Australia

Consulting Matters

5

From the CEO It has been a time of new constructs for Consult Australia, with the unveiling of our newly constructed website! The site has been designed around the value of Consult Australia to ‘your industry’, ‘your business’, and ‘your career’. Under ‘your industry’ you’ll find our advocacy and thought leadership campaigns organised by our four key focus areas, people, practice, pipeline, and procurement. Under ‘your business’ you can find all our member services including our practice notes and business guides, and ‘your career’ is where you’ll find our professional development and event listings. To find out what’s going on in your local area, navigate to the state/territory pages to see upcoming events and local advocacy. You can keep up to date with our activities and publications by going to the latest news page. Please also tune into James and Kristy’s monthly ‘Pulse Updates’ video for a 5-10 minute round-up of our advocacy work.

In another new construct we have set up a regular online Open Forum for our SME members to come and talk with each other and discuss issues with me, James, Kristy, and Gerry. There’s no set agenda, members can drop in as they want. Topics raised in our first Forum included concerns about the availability and affordability of Professional Indemnity Insurance, the burden of increasing red tape, and the need for project pipeline transparency. The Forum follows an SME discussion at our June Board meeting, where a group of our SME members shared their views on how we might improve our engagement and value to Consult Australia’s small and medium business members. In this edition you’ll see other updates for our SME members, including our upcoming SME Summit where we’ll be exploring in more depth the issues raised through the Open Forums.

For the first time we’ll be delivering our Annual Awards for Excellence via an online live event, whilst it is sadly not possible to have our traditional face to face celebration, which was to be in Melbourne this year, we will still put on a great show to reveal the winners. So, you can still dress up and celebrate your successes with us on 29 October!

We know that challenge/adversity leads to innovation and a reimaging of what once was, pushing us outside our ‘comfort-zones’ to create new ways forward. Contributions in this edition explore these opportunities.

Anthony Richardson (Aurecon), invites us to imagine, ‘What if energy was free?’, and looks at how this might be possible in Australia. Sophie Olsen, Jonathon Chapman, and Dorte Ekelund (SMEC) explore potential policies to unlock private investment for property development to stimulate economic recovery. Professor Danny Samson (Melbourne Business School) makes the case for leaders to embrace ‘ESG’ for the growth and success of our organisations.

It has been shown that diversity and productivity are intrinsically linked, arguably because innovation comes through diversity of thought, by bringing together people with different backgrounds and experiences. Dr Juliana Mutum and Dr Frédéric Blin (Aecom), consider this in their article, ‘I want to be a leader but I’m not white and named Andrew’.

Thank you to over 200 of you who joined our Male Champions of Change online session on ‘why diversity still matters in times of crisis and beyond’ at the beginning of September, with Dr Fitzsimmons who took us through leading practices in creating and sustaining gender inclusive workplaces.

Much work has been done, but much work remains to be done. If you want find out more about the Male Champions of Change

We know that challenge/adversity leads to innovation and a reimaging of what once was, pushing us outside our ‘comfort-zones’ to create new ways forward. Contributions in this edition explore these opportunities.

and our diversity and inclusion work, please don’t hesitate to reach out.

Please connect with us via our social media, or contact us direct, to share your new constructs and engage in our activities – by coming together through Consult Australia we create an avenue for diversity of thought that creates value for you, your business, your industry, and the Australian community we all seek to serve.

Nicola Grayson CEO

6

Consulting Matters

What’s happening at Consult Australia

State & Territory Updates With varying market conditions around the country Consult Australia’s state and territory managers share their insights on key challenges and opportunities for our member firms.

NSW

Kristy Eulenstein POLICY

FutureNet Business Leader Program

The Design and Building Practitioners Bill 2019 (NSW) The Design and Building Practitioners Bill 2019 (NSW) recently passed through Parliament and work to develop the regulations that sit with the Act has commenced. Consult Australia will be attending each of the round-table meetings on scoping the regulations to ensure that our voice is heard as well as attending one-on-one meetings with government.

Transport for NSW Contracts TfNSW have indicated that they are working on a new form of contract for consultant use. They have highlighted that they do recognise some of the issues that industry is having and are sympathetic to matters that have been raised by Consult Australia members. To ensure that we are kept informed of their progress they have committed to updating Consult Australia on a fortnightly basis and any new information will be provided to members.

• Working in remote offices

Despite being unable to meet face to face for almost all the program the FutureNet Business Leader program forged ahead in 2020.

All topics were modified to be delivered online with rich content being key to the success. Twenty young industry professionals commenced and finished the program, the final session being held on Thursday 3 September. As with previous years participants of the program were divide into groups to work on the same project. This year the project was the re-development of the Eurobodalla Botanic Gardens that were substantially damaged during the summer bushfires. The next stage of the project was the judging and award ceremony. Participants had the opportunity to come together faceto-face during the streaming of their presentations to industry on the evening of 1 October 2020. Congratulations to our winners and all the teams involved in the 2020 FNBL program.

• Recruiting and training staff

NSW Online Boardroom Discussions

Complimentary Online SME Summit To assist our SME members into the future we have recently launched our Inaugural SME Summit. The Summit will be held on Wednesday 21 October from 10am – 2pm. This is an online event that we have opened up to all Consult Australia SME members free of charge. The program has been designed by our SME members for the benefit of our SME members. Topics include:

• Business survival strategies • Tips & Tricks to assist with PI Insurance • Mental Health Awareness • Economic Stimulus Packages for SME Businesses • Building Confidence Reforms • Driving Better Local Government Contracting Register here Platinum Sponsor:

Gold Sponsors:

Over the past six months the NSW online Boardroom Discussions have been a great success. Hosting key speakers including, Claire Gardiner-Barnes from INSW, Anthony Manning CEO Schools Infrastructure, Rebecca Wark CEO Health Instructure, Romilly Madew CEO Infrastructure Australia, Cathal O’Rourke, MD Australia Hub, Laing O’Rourke, and others has been a pleasure and provided good benefit to those who have registered. By continuing to visit the NSW event webpage you can keep informed on upcoming speakers who may be of interest and register.

What’s happening at Consult Australia

Consulting Matters

7

VIC

James Robertson The Victorian Committee Chair and State Manager met with Corey Hannett, DirectorGeneral Melbourne Transport Infrastructure Authority (MTIA). This was to discuss the current state of the sector, the value of consultants to the construction industry, and the mutual acknowledgment there is a need across the industry for fairer procurement models. In late August, Mr Hannett presented at a Consult Australia online event, where he spoke further about these topics. He also provided an update on MTIA’s COVID-19 safety plans, which include regular temperature testing and physical distancing as well as a 100-day testing blitz, a significant reduction in their on-site workforce, and conducting more than 3,000 onsite compliance inspection. A consultation panel was established by MTIA to identify and respond to COVID-19 challenges, and industry meetings and forums have been a valuable way of receiving feedback to shape MTIA’s response.

Major Roads Projects Victoria (MRPV) has adopted a new program delivery approach for the Suburban Roads Upgrade project. Their key objectives are to support a sustainable market, improve efficiency of project procurement, and better align objectives through a more collaborative approach. Program Delivery Director, Steve Cornish, recently spoke at a Consult Australia online event, to further explain this new approach and the potential benefits for the project outcomes as well as contractors and consultants alike. A recent request from MRPV for consultants to provide feedback on a draft Design Subcontract Key Commercial Principles document has raised some concerns for Consult Australia. A meeting with the MRPV team will address these issues and an update will be provided in a future Consulting Matters publication.

Regional Roads Victoria CEO, Paul Northey, spoke at an online event in mid-August. Paul provided attendees with an insight into the program of works at Regional Roads Victoria (RRV) and he welcomed feedback on ways in which his team could better engage with consultants.

In response to member concerns, we are advocating for changes to the Victorian Construction Supplier Register (CSR) and the underlying requirements in the Building Act 1993 (Vic). We know that some businesses are struggling to comply with the requirement that the company board of directors represents all registration classes. In writing to the Victorian Treasurer, Deputy Treasurer and Minister for Planning we have stressed that the state’s stimulus projects will be at risk without changes to the CSR. Members who work as sub-consultants on Victorian government projects should also note that the Department of Treasury and Finance has confirmed that sub-consultants are not expected to be included on the CSR. The purpose of the CSR is to pre-qualify the lead practitioners as suppliers to the Victorian Government for public construction. If your business is being required by a government client to be on the CSR where either you are a sub-consultant or for disciplines not linked to public construction please let us know.

Members who work as subconsultants on Victorian government projects should also note that the Department of Treasury and Finance has confirmed that sub-consultants are not expected to be included on the CSR. The purpose of the CSR is to pre-qualify the lead practitioners as suppliers to the Victorian Government for public construction.

If your business is being required by a government client to be on the CSR where either you are a subconsultant or for disciplines not linked to public construction please let us know.

Consult Australia and the Victorian and Tasmanian Committees would like to give best wishes to Kathy Uhlik who leaves Consult Australia to join Pitt and Sherry. Kathy has made a great contribution to Consult Australia during her time with us and we wish has every success for her new role.

For any division queries, email vic@consultaustralia.com.au Please see the website for more details and to register for upcoming events, here.

Gold Sponsor:

8

Consulting Matters

What’s happening at Consult Australia

SA, NT & TAS Jan Irvine

The past few months have seen us focussed on keeping members up to date in the ever-changing business environment in which we now work and engaging with government to understand measures being taken, and those planned, to support and strengthen our industry and economy.

At our August Boardroom Discussion with The Hon Steven Marshall MP, Premier of South Australia members were briefed on the SA Government’s views regarding plans to inject stimulus funding into the forward design and advisory consulting services for those projects in the existing pipeline, and the medium to long term government strategies to re-vitalize the economy, particularly in the built-environment, post COVID-19.

Manager SA Jan Irvine was invited to sit on the SA Government COVID-19 Recovery Construction Sector Sub Committee. This committee is tasked with providing effective strategic direction and industry insight to drive a collaborative and coordinated approach to enable the construction sector to support the recovery in South Australia post COVID-19.

In recent discussions of this group we have advocated for:

on projects, asset management, and upskilling of our sector. We also reiterated the high level of skills and knowledge within our membership that can be of assistance and able to advise on ways forward.

Consult Australia has shared our COVID-19 Pulse Survey report and supplied job multiplier data for business cases to the sub-committee Chair for inclusion in reporting to Cabinet.

Continuing our advocacy work in the procurement space, we recently met with Simon Morony, Executive Director, Across Government Services and Ben Hogarth, Director Building Projects to discuss procurement models for buildings projects - specifically engagement of consultants - and terms and conditions of standard contracts. Following the discussion, we supplied a formal response regarding procurement methods and details of clauses of concern in current contracts. We are currently awaiting their response to inform our next steps as we continue our work in this space.

Some of our events are moving back to face to face offerings and, as always, details of all our events can be found on our website. Please also feel free to contact sa@consultaustralia.com.au for any further information.

Gold Sponsors:

Silver Sponsors:

• Stimulus now Investing in future and forward planning around funding for business cases, front end planning and design work, and other advisory services Investment in Digital Engineering To be included in stimulus finding (for Department for Infrastructure and Transport & other agencies) to attain better value for money

NT Consult Australia recently held a Boardroom Discussion with The Hon Nicole Manison MLA, NT Deputy Chief Minister and Treasurer. The discussion covered the economic environment and long-term sustainability of members businesses and the sustained employment of Territorians involved in the planning and design of the Northern Territory’s built form, infrastructure, and natural environment. Members shared their concerns regarding the economic impact of COVID-19 and how the Territory can respond to emerge from the crisis as strongly and competitively as possible.

We shared our NT Election 2020 Policy Platform and Ms Manison acknowledged the Government’s reliance on the local consulting industry to deliver the pipeline of projects and outlined measures the NT Government has taken and will continue to take to support our industry.

This document was also sent to the Chief Minister, The Hon Michael Gunner MLA and key NT Ministers and stakeholders. The Chief Minister’s response to our recommendations can be viewed on the member accessed NT Advocacy page of our website here.

The NT Department of Trade, Business and Innovation has created a taskforce ‘Team Rebound’ to manage the Territory’s economic recovery, rebuild and rebound from COVID-19. In response to a call for feedback, we made a submission to the taskforce. We highlighted results from our recent Industry Health Check Pulse Survey indicating the impact of COVID-19 on our members and the outlook for the next six months. We attached our policy briefing outlining the role that the built environment industry can play in supporting the economic recovery efforts across the country. The need for improved procurement practices was also mentioned as a way to drive greater productivity.

As we continue to advocate on behalf of our members, we will keep you informed and provide avenues to be a part of the discussion. If you would like to join the emailing list to receive this or any other NT information, please contact jan@consultaustralia.com.au.

What’s happening at Consult Australia

ACT

Jan Irvine (Acting) The ACT Infrastructure Sector group has now been rolled into the Planning and Construction Industry Chief Executive Reference Group (PACICERG). These meetings are held fortnightly and attended

by Michael Hill, ACT Chair and Jan Irvine, Acting ACT Manager.

Several members of the Infrastructure Group such as the Chief Projects Officer, Major Projects Canberra, Duncan Edghill have now become members of PACICERG. PACICERG covers all issues previously addressed by the Infrastructure Group such as the current business environment - concentrating primarily on industry updates and perspectives, health of local industry updates, and Director Generals providing government commentary and updates. Consult Australia continues to advocate for a strong and clear pipeline of work to be announced by the ACT Government and has also raised the consulting industry’s ability to support the government with client-side project management. We will keep members updated on progress via the ACT Update EDM. The Labour Hire Licensing Act 2020 was passed by the ACT Legislative Assembly in May. Consult Australia wrote to the office of Suzanne Orr MLA, Minister for Government Services and Procurement to outline some concerns with the Bill, including some unintended consequences flowing from the broad drafting, and some recommendations to clarify and rectify the issues. The legislation establishing the new Labour Hire Licensing Scheme has not yet commenced. The ACT Government is currently underway in the implementation phase, including considering the suite of supporting instruments required to meet the purpose of the scheme, such as Regulations. In developing these, the Government has undertaken to consult with Consult Australia and other stakeholders on matters including exemptions. We will update members as consultation occurs.

As the ACT Government explores the framework for the registration of engineers in the ACT, we wrote a letter to the ACT Chief Engineer to advocate strongly for mutual recognition and mutual registration.

We stressed the importance of a nationally consistent approach to reduce the burden on businesses that operate across state and territory borders. We also directed the Chief Engineer to the work of the Australian Building Codes Board (ABCB) through its BCR Framework Implementation Team on a national approach. We had a positive response to the letter and discussions are continuing.

With the ACT Election due in October, our ACT Election 2020 Policy Platform for political parties as they prepare their election campaigns has been published. Our recommendations cover all four areas of People, Pipeline, Practice and Procurement. This document will be sent to key ACT government and shadow stakeholders.

Upcoming Events FutureNet ACT, Future State of the Territory with Chief Minister Andrew Barr MLA and ESA Commissioner Georgeina Whelan – Date TBC For details and to book for upcoming events please see our website.

Consulting Matters

9

QLD

David Shillington In August we saw the launch of the joint initiative between Consult Australia and the QLD Major Contractors Association’s.

The ‘Building Bridges’ project is a valuesdriven partnership aimed at addressing the cultural issues within our industry and looks for solutions to make it work better.

Accountability, relationships, developing people, and recognition are focus points of the initiative with the first joint event to be held in late October.

Over the last few months we have maintained a strong voice for our members liaising with both the Department of Transport and Main Roads as well as the Department of Housing and Public Works.

We have met with Neil Scales and Amanda Yeates discussing how TMR and Consult Australia’s small and medium sized member firms can work better together. We met with LGAQ’s CEO Greg Hallam to discuss how our smaller member firms can work closely with councils during Covid-19 recovery.

Damian Gould, Building QLD’s CEO, joined the Consult Australia QLD committee to discuss how member firms can work closely with Building QLD to maintain a consistent and transparent pipeline of work. Consult Australia firms provide services to support Building QLD in developing robust business cases. We continue to support strong decision making in sustainable infrastructure investments that provide positive social impact.

Throughout August we held events on ‘marketing essentials’ with Maria Rampa and discussed ‘leadership principles’ with the NRL’s Wayne Pearce. In September we had a ‘legal essentials’ online event with Jonathon Hadley from Gadens law firm and a free RUOK? Day themed event with Agatha McAndrew discussing her personal well-being transformation journey and picking up some great tips to ensure we have better balance in our lives for optimum health.

In October we’ll be uploading a number of events to the Consult Australia Queensland webpage, keep an eye out for an online event discussing the latest in building tech, an online discussion with Cross River Rail CEO Graeme Newton, and also learn how to present you and your business successfully on social media.

Gold Sponsors:

10

Consulting Matters What’s happening at Consult Australia

WA

Diane Dowdell A number of key activities and meetings have occurred in Western Australia over the past quarter. While the focus continues to be around the Covid-19 recovery activities, the government agencies are focussed on delivering a range of opportunities to market. Continued engagement with key government agencies and individuals has continued despite the challenges. Consult Australia attended and made contributions to several different ministerial roundtables that were established to guide the WA Government response to Covid-19. Feedback provided

by Consult Australia included:

Finally, the Department of Mines, Industry Regulation and Safety (DMIRS) released its consultation paper on the registration of engineers. We will be working over the coming quarter with member companies on the implications of the release of this document to raise any concerns of member companies. If you would like to be involved, please email wa@consultaustralia.com.au or stay informed via the advocacy page.

Platinum Sponsors:

• ensuring that recovery activities focused on ways to increase the range and number of consulting resources participating in transport infrastructure works, and • sharing information to secure and maintain the longer-term viability of the industry post the initial wave of investment from the stimulus measures.

Gold Sponsor:

Department of Finance (DoF) – BMW We engaged with Deputy DG and Director of Building Management and Works area in DoF on the importance of transparency and visibility of the pipeline of future activities to be conducted. DoF is currently working through a restructure that will bring the activities of the department in line with the new Procurement Act 2020 that has received royal assent in June 2020. We continue to advocate for the development of an industry working group with DoF building and works to provide a forum for visibility of the pipeline and effective procurement contracting arrangements.

Infrastructure WA A considerable amount of advocacy work has been conducted during the quarter with Infrastructure WA (IWA). Early in the quarter we engaged with Deputy CEO Lance Glare on the development of the discussion paper to support the development of the 20 year infrastructure strategy. Consult Australia also attended an industry breakfast hosted by IWA Chair, John Langoulant AO when the document was released. We followed this activity up with a member breakfast in July where Lance Glare and IWA Board Member Kerryl Bradshaw and Director of Planning and Strategy Lauren Aitken made a presentation to members on the discussion paper and the process to be followed to develop the 20 year infrastructure strategy. Consult Australia has been invited to participate in the external stakeholder reference group with IWA as they move through the process of developing the first 20 year infrastructure strategy for WA. Further information on the Consult Australia submission and stakeholder reference group can be found on the member’s only section of the WA advocacy page.

While events were impacted in the previous quarter, we have been fortunate to move back into face to face events in Western Australia during July. Along with the member only breakfast with IWA, a WA FutureNet event was also held in August, with a number of member and non-member young professionals and sponsors attending a sundowner at the Melbourne Hotel on Alliance and Public Private Partnership contracting models. The WA members have also been able to take advantage of several national webinar events that have been held over the past few months.

Silver Sponsor:

What’s happening at Consult Australia Consulting Matters

11

Consult Australia 2020-21 Budget Response The Federal Budget was handed down by the Treasurer on 6 October 2020. Consult Australia welcomes the Government’s continued commitment to infrastructure investment including infrastructure stimulus, and annual analytical assessments of infrastructure market capacity by Infrastructure Australia.

Budget measures to increase the already record investment in infrastructure by a further $14 billion for new and accelerated infrastructure projects are good to see.

Consult Australia’s message to governments is to get moving on a pipeline of new projects that can be brought to market quickly and efficiently.

Infrastructure Australia’s assessment of market capacity is going to play a key role in infrastructure planning so that we see a smooth sustainable pipeline of work across the infrastructure sector.

Peaks and troughs of work are not good for maintaining jobs and growth, so by industry and governments working together on capacity, and introducing greater efficiencies in the delivery of infrastructure projects, we can realise excellent productivity outcomes for every dollar spent.

It will be important that governments engage with industry early and quickly on getting these projects to market in the most efficient way possible. This will provide certainty for job planning and growth.

There is an opportunity here for our industry and governments to work collaboratively to deliver something remarkable that will not only provide job security for many but also provide first-class infrastructure that will benefit Australian’s for decades to come.

Other highlights from the Budget included: • $ 4.6 million over four years from 2020-21 to develop and implement a new procurement policy that will require large businesses to pay their suppliers within 20 days. This policy will apply to businesses with an annual turnover greater than $100 million that are undertaking Commonwealth Government contracts that meet the specified threshold.

• $70 million in 2020-21 to support the mental health and financial wellbeing of small businesses impacted by COVID-19, including $4.3 million to provide free and

tailored support for small business owners by expanding Beyond Blue’s NewAccess program.

• $146.3 million over five years from 202021 for a package of initiatives to improve education outcomes of young Australians.

The package also includes $27.3 million over five years from 2020-21 to enhance STEM skills, including $4.8 million to enhance teaching practices by partnering teachers with STEM professionals.

• Expanded access to a range of small business tax concessions by increasing the small business entity turnover threshold for these concessions from $10 million to $50 million. This will be delivered in three phases from 1 July 2020 to 1 July 2021.

Eligible businesses will be: o Able to deduct certain start-up expenses and certain prepaid expenditure, o Exempt from the 47 per cent fringe benefits tax on car parking and multiple work-related portable electronic devices (such as phones or laptops) provided to employees; and o Able to access the simplified trading stock rules, remit pay as you go (PAYG)

instalments based on GDP adjusted notional tax, and settle excise duty and excise-equivalent customs duty monthly on eligible goods under the small business entity concession.

•F ull and immediate expensing of depreciable assets for businesses with aggregated annual turnover of less than $5 billion enabling them to deduct the full cost of eligible capital assets acquired from Budget night and first used or installed by 30 June 2022.

• Eligible companies will be able to carry back tax losses from the 2019-20, 2020-21 or 2021-22 income years to offset previously taxed profits in 2018-19 or later income years. Corporate tax entities with an aggregated turnover of less than $5 billion can apply tax losses against taxed profits in a previous year, generating a refundable tax offset in the year in which the loss is made.

Consult Australia’s summary of the Federal Budget for members is available to read here.

James Robertson Consult Australia Note: If you work for a Consult Australia member and don’t already have a log-in, please follow the create log-in prompts to set this up.

12

Consulting Matters Features

What if energy was free?

THE COFFERS OF HOLLYWOOD HAVE BEEN LINED BILLIONS OF TIMES OVER FROM BLOCKBUSTERS FEATURING DYSTOPIAN FUTURES WHERE THE WORLD RUNS OUT OF ENERGY. FROM THE CLASSIC MAD MAX 2 TO THE MORE RECENT NBC REVOLUTION SERIES, WHAT HAPPENS WHEN THE LIGHTS OR FUEL RUN OUT CREATING ENOUGH DRAMA AND INTRIGUE TO EVEN WARRANT A DEDICATED ‘ENERGY CRISIS’ FILM CATEGORY ON IMDB.

While worst case scenarios make for good entertainment, what if a radically unconventional view was taken for real life: what if energy was free? Imagine if it was so abundant it could be made free or a nation decided that free energy was to be its competitive advantage. Although it might not help James Cameron with his next blockbuster, what sort of future would that stimulate?

Professor Tim Flannery’s 2005 book The Weather Makers painted the scenario of a new Australian inland city called Geothermia. This city isn’t created for access to agricultural areas or waterways, rather because energy derived from the sun and hot rocks is free. Rather than driving economic activity from lower taxes or lower labourcost, Geothermia draws business investment by offering zero-cost energy.

Let’s take Flannery’s idea to a global scale for hot-weather countries. Nations with an abundance of arid land and high insolation rates become free-energy zones where the costs of renewable power are so low that domestic energy is given away. Exporters pay an export duty to sell products, and the export duty is reinvested in the energy system. The benefit? It attracts investment, especially in manufacturing; it cleans up the environment; creates a ‘zero-emissions’ export brand, and lowers the cost of living for local communities.

To get there we need a major rethink For decades, countries have attracted investment and industry to their nations with the goal of generating jobs and economic progress. Much of the development of South East Asia and Latin America has resulted from developed nations shifting manufacturing plants to locations where labour costs are lower, making production cheaper. Lower cost products increase the manufacturers’ markets and drive jobs for the host country.

Other countries have advantages other than labour cost, including access to abundant natural resources or access to large

markets. Governments also offer investment incentives and low tax regimes. However, using energy as a differentiator has been low on the priority list. The Middle East’s low oil costs have not resulted in it becoming a renowned manufacturing centre because other factors have outweighed the low energy-cost benefit.

Enter Australia. We have copious fossil fuel resources, most of which we export. We also have raw materials and an educated and high-skill workforce, even if our access to large markets is not great. However, we also have relatively high energy prices, particularly for a country that produces so much gas, coal, sunlight and wind. Our energy system is complex and while we have around 23% of renewables in our electricity grids already, the grids were built for coal-fired baseload generation, with some hydro and gas for peak demand periods. Even with a growing renewables share of our grids, we are bogged down with connection and transmission challenges.

The COVID-19 pandemic has exposed weak points in the global supply chains that have basically shifted manufacturing to where the wages are low, and sold the subsequent products where incomes are high. These supply chains now prove troublesome during COVID-19, as basics and essentials – such as medical supplies, pharmaceuticals and precursor chemicals – are delayed or restricted in their country of origin.

For countries such as Australia, the question becomes if the global supply system has been changed by COVID, what levers can we pull to build our manufacturing base? If we accept that access to raw materials, access to market and the cost of labour remain the same, post-COVID, what lever could we pull other than a blatant bidding war on tax incentives?

There’s a left-field, revolutionary option: free energy Here’s how it could work in Australia. The entire economy wouldn’t start on ‘free energy’ since we don't have a large enough renewables sector to be able to give away the energy. But we could begin with a zero-emissions loop where manufacturers’ products with zero-emissions energy inputs, get their energy ‘free’. They take electricity from hydrogen or renewables – for no cost – and pay 20% tax on their exports.

Specific industries could be kick-started on the royalty system in a number of ways. For example, instead of billing the energy user, imagine if you set the royalty at the price of energy consumed via that product today, and it was attached to the cost of the export.

Alternatively, you could start by taking the price of energy today and the export would pay no more than that.

As this system develops – with increasing renewables and hydrogen generation

The COVID-19 pandemic has exposed weak points in the global supply chains that have basically shifted manufacturing to where the wages are low, and sold the subsequent products where incomes are high. These supply chains now prove troublesome during COVID-19, as basics and essentials – such as medical supplies, pharmaceuticals and precursor chemicals – are delayed or restricted in their country of origin

Features Consulting Matters

becoming more efficient with scale and technology – the marginal cost of producing the energy approaches zero. With sufficient renewables and hydrogen in the grid, which forces out gas and coal on a cost basis, the entire economy can eventually transfer to free energy.

The Australian domestic energy system would be maintained by a 20% duty on energy exports, including hydrogen, ammonia, undersea cable electricity, LNG and coal. If you’re an Australian household or a business, you don't pay for energy – energy exports pay for the domestic energy system.

And just about everything manufactured in Australia is zero-emissions.

The most obvious advantage of the freeenergy nation is that companies with significant manufacturing interests could choose to make things in Australia, especially those with an energy cost greater than the 20% export duty they’d be charged. This would include just about anything metal or chemical-based, and create an incentive for companies to manufacture in Australia rather than shipping raw materials to Japan, China and Korea. Australia performs poorly in terms of the value that manufacturing adds, as a percentage of GDP, according to the World Bank. Australian manufacturing adds 6%, the same level as Panama and Belize, well short

of China (27%), Germany (19%), the United States (11%) and the world average of 17%.

Another advantage is the capacity for products manufactured in Australia to be labelled ‘zero emissions’ or ‘carbon-free’, whatever the agreed branding. Carbon inputs and embedded emissions in goods will at some point be penalised as they cross national boundaries, under Scope 3 rules.

Also, ‘Article 6’ of the Paris Agreement on emissions gives scope for one country to invest in emissions-reduction projects in another, and claim the carbon credits. Given the right carbon credit regime, Japan could offset its domestic emissions and pursue its Paris targets, through investing in either ‘green’ hydrogen (using renewable electricity to crack water) or ‘blue’ hydrogen (from the offtake of a Carbon Capture and Storage plant attached to coal or gas facilities). The hydrogen is then used to generate zeroemissions power.

Early commitment is vital The ‘free-energy’ idea depends on a firstmover advantage, especially as it pertains to global commodity prices for energy. We don’t want a repeat of the gas situation where it’s now cheaper to import LNG from Singapore than to buy it from Australia’s

The most obvious advantage of the free-energy nation is that companies with significant manufacturing interests could choose to make things in Australia, especially those with an energy cost greater than the 20% export duty they’d be charged.

13

domestic gas system. In order to avoid the same global blowback on Australia’s next big energy export – hydrogen – we need early government commitment.

And how would this be negotiated? It would require governments to step back into a planning and coordination role in energy systems, and an acceptance that energy is a strategic element of the national and global economy, not just a short-term revenue earner. Just as governments give away billions in tax revenue to build industries, would Australian governments give away energy to lead a new green economy that cleans up the environment, brings manufacturing back, and creates a ‘zeroemissions’ export brand?

While this scenario might seem as extraordinary as the futures we’re used to seeing on screen, economies fuelled on low carbon-free and abundant energy is unorthodox thinking that could set one economy zigging when everybody else is zagging.

Aurecon’s award-winning blog, Just Imagine provides a glimpse into the future for curious readers, exploring ideas that are probable, possible and for the imagination.

This post originally appeared on Aurecon’s Just Imagine blog. Get access to the latest blog posts as soon as they are published by subscribing to the blog.

Anthony Richardson Aurecon

14

Consulting Matters Features

From CSR to Sustainability to ESG: powerful new strategies The field of work and corporate orientation that started some 50 years ago as Corporate Social Responsibility (CSR), then partly morphed into Sustainability some 25 years ago, has undergone transformation in recent years and is getting some very real teeth behind it as ESG (Environment, Society, Governance). Companies that embrace ESG principles will gain some major advantages as set out below, and those that ignore it will ultimately do so at their peril. ESG involves moving from considering shareholders as the first priority, to balancing stakeholder needs, and the good news is that when this is done, shareholder returns are improved!

What is ESG? ESG involves the assessment and improvement of actions, initiatives and results of organisations’ environmental, social and governance processes. It is common these days for large organisations to publicly report their progress in ESG, often labelled as Sustainability or ESG reports, which can run to some hundreds of pages of detail.

There are a broad set of activities and areas to cover! There are many ways of cutting any ‘cake’ but most approaches are something like the following framework that I use: 1. Environmental practices and initiatives a. Lowering carbon and related emissions and pollution b. Reduced use of water and other exhaustible resources c. P reservation of natural environment, ecology and biodiversity d. Reduced climate risks e. C ontribution to reduction, recycling and reusing of physical resources f. Environmentally focussed products/ services and business processes 2. Social practices and Initiatives a. Respectful treatment of stakeholders b. Contribution to community wellbeing c. C ontribution to diversity and human rights 3. Governance practices and Initiatives a. Board practices b. Accountability and transparency c. Ethical standards and Business Integrity d. E xecutive and management structure and practices e. Governance specific processes

In my research and advisory work on ESG, I also focus on the leadership aspects of ESG, including senior leadership commitment, alignment and integration with core values and strategies, and planning/ resourcing of ESG works. Finally, the results in each of these areas need to be measured, in terms of actually making a difference. It can holistically be turned into a scoring system that all stakeholders can use, for a variety of purposes.

Why should we care about ESG? Leaders, managers and technical experts in our design, building and engineering businesses should care about ESG for many good and valid reasons. First is simply because we are human, and will all be impacted to a lesser or greater extent from environmental conditions, social conditions, and the governance outcomes of our firms.

Sustainability approaches of last decade can be summarised as ‘Doing well by doing good’, because selecting and implementing a range of such practices clearly enhances profitability. ESG has ramped this up and become a major focus for professional investors, for example BlackRock (with some A$10 trillion invested) announced in 2020 that these non-financial measures will become as important as financial projections, in investment decision making. This signals a massive shift in global investment markets, and very recently we have seen rapidly rising proportions of global investments going into companies that are advanced in their ESG/ sustainability position. Also, of great interest to investors, is the increasing body of evidence that advanced ESG practices are significantly correlated with superior financial returns!

This has developed as business leaders get smarter at choosing their ESG initiatives.

This works in many ways: for example according to survey research from McKinsey, benefits come significantly from enhanced corporate reputation, staff attraction and motivation, meeting societal expectations, reduced risks and costs, improved revenue and access to capital. These benefits are substantial and can occur in every and any industry, and when practices and initiatives are sensibly chosen, evidence is that these benefits come in both the short and long term. There are very good reasons as to why investors, especially professional fund managers, are moving to ESG active firms:

meaning firms that actively measure, report, and improve their ESG profile. Employees are also considering the ESG of their employer.

Consumers are looking harder at the companies they buy from, looking into brand reputation. And many firms are using ESG qualification in selecting their suppliers.

Regulators and institutions are also getting serious about ESG: for example the Hong Kong Stock Exchange has mandated that all listed companies must rigorously report their ESG strategies, outcomes, board oversight aspects and plans for advancement. Other markets and regulators will follow. Singapore Exchange has signalled that companies should get ESG ready for the $20 trillion dollar Asian ESG investment market. The ‘market’ for such ESG information is maturing, and while it is still early days, this is a great time for business leaders to more strongly engage all their stakeholders through this powerful mechanism.

How can businesses and their leaders best go forward?

Leaders should plan and execute their ESG approach systematically just as they would with any other business strategy or initiative.

I suggest that just as with anything else significant, an ‘audit’ of the firm’s current position in all the aspects of ESG can be a great starting point, closely followed by a strategy for moving forward, from which one hangs tangible plans and goals. The best way to conduct the assessment is to examine each of the 20+ elements through a maturity/ effectiveness framework: this examines how well the ESG plans are aligned with and integrated into mainstream strategies and business operations, how deeply they are embedded in systems, metrics and even culture. While there are over 150 published methods for assessing ESG, the best approach is to examine each category using a validated scoring system, adapted from business excellence frameworks.

These scores complement descriptions in sustainability reports, and provide for effective decision-making and benchmarking.

Danny Samson University of Melbourne Professor Danny Samson conducts Consult Australia’s ‘Service Excellence and Innovation’ 2-day program each November. Comments about this article or requests for his ESG scoring framework can be sent to dansamelb@gmail.com

Features Consulting Matters

15

Unlocking Private Investment with Targeted Covid-19 Infrastructure Stimulus THE COVID-19 PANDEMIC HAS BROUGHT CHALLENGES TO ALL ASPECTS OF OUR LIVES WITH GOVERNMENTS ACROSS AUSTRALIA, INDUSTRY AND THE COMMUNITY DESPERATE TO RESUSCITATE THE ECONOMY AS QUICKLY AND COST-EFFECTIVELY AS POSSIBLE ONCE THE PUBLIC HEALTH CRISIS IS UNDER CONTROL. MANY STATE AND TERRITORY GOVERNMENTS HAVE BEEN PROACTIVE IN FAST-TRACKING DEVELOPMENT APPROVALS, BUT WHAT ELSE CAN WE DO TO UNLOCK DEVELOPMENT AFTER LOCKDOWN? Within the urban development sector, all levels of government in Australia must be commended for their strong commitment to supporting infrastructure pipelines, especially for significant transport, water and energy projects. Unfortunately, new residential development is anticipated to be particularly hard hit over the coming years due to lower net migration levels, more reluctant homebuyers and more conservative lending.

providers do not always have the resources or tools to help facilitate development or fund the required infrastructure. Economic Development Queensland (EDQ) recognises that fragmented land ownership and the significant cost of trunk infrastructure means it may not be feasible for any one developer or government entity to fund the required infrastructure upfront and, in response, provides co-investment opportunities.

To address this anticipated downturn, a number of jurisdictions are reviewing infrastructure funding models. Current infrastructure funding systems vary significantly from state to state, though almost all require some level of monetary contribution upfront from developers and a handover of assets prior to connection.

In New South Wales, the Productivity Commissioner has been tasked with undertaking a review of infrastructure contributions by the end of 2020. The review will examine whether the existing system creates the certainty and efficiency required to support development. A similar review of the Victorian contributions system was released in March 2020 by the Victorian Auditor General “Managing Development Contributions�, which found that the contributions system was too fragmented, carried an unnecessary bureaucratic burden and ultimately was not performing as intended.

All jurisdictions tackle infrastructure funding differently. In Victoria, infrastructure contributions are collected through measures such as Growth Areas Infrastructure Charges, Development Contributions Plans and site-specific agreements, which can result in a patchwork of infrastructure upgrades over time. The approach in the Australian Capital Territory (ACT) is unique, as the centralised Suburban Land Agency and the leasehold land tenure system allows the funding of infrastructure and rezoning of land to occur concurrently. In New South Wales, the Housing Acceleration Fund was established to provide grants for infrastructure projects that are necessary for the delivery of new housing such as road duplications, signalised intersections and water and sewer augmentation projects.

Whilst a review of infrastructure funding models is encouraging, we expect any legislative and procedural changes will take time. In the interim, we see an urgent opportunity for government to combat a downturn in development by funding lead-in infrastructure now and recovering payment at a later stage in the development cycle, when there is better cashflow and more certainty.

There are a range of different infrastructure contribution models in Australia, however it is evident that an equitable, efficient and transparent method of raising funding for infrastructure is needed to support the postpandemic recovery of the urban development

Current funding models We have seen many of our private urban clients struggle with progressing their developments when substantial upfront investment in precinct-wide infrastructure is required, like lead-in sewer and water, wetlands and roads. Likewise, local government authorities (LGAs) and utility

Houses under construction. Images provided by SMEC.

sector. Whilst some governments are reviewing their infrastructure funding models, we believe there is significant opportunity for governments to target spending that will have an immediate economic stimulus by unlocking private urban development.

Options for fast-tracking recovery The post-pandemic environment may see private developers less willing to fund the lead-in infrastructure that is vital to the growth of our cities. Targeted funding for critical infrastructure such as road upgrades, trunk water and sewerage, stormwater and wetland systems is key to unlocking development opportunities, stimulating jobs, improving the affordability of housing and supporting the post-pandemic recovery of our cities.

Recently, some jurisdictions have focused on fast-tracking development approvals and rezoning applications, selecting projects based on their potential for job creation and private investment. We suggest the same thresholds could also be applied to lead-in infrastructure projects. This infrastructure spend could ultimately be reimbursed through special levies or contribution plans.

A win-win for government, the economy and private development.

Sophie Olsen Jonathon Chapman Dorte Ekelund SMEC

16

Consulting Matters Features

I want to be a leader but I am not white and named Andrew As a nation that has grown significantly over two centuries of international migration, diversity is widely visible, and to an extent accepted, on the streets of Australian cities. However, in the boardrooms of major Australian companies, it remains an aspiration rather than a reality. Did you know, there are still more men named Andrew leading ASX200 companies than women (1)?

In a few decades after it abandoned its controversial 'white' policy, which favoured Anglo-Saxon migrants, Australia introduced the point-based skilled migration system to address skill shortages. This system allowed individuals to demonstrate competencies irrespective of their gender, cultural background, religious beliefs, social class, sexuality etc. to migrate and contribute to the nation.

Skilled migration has been a significant contributor to the Australian economy, bringing in $81 billion in 2016-2017 (2). There are some concerns about the impact of COVID-19 on migration as it is "the major driver behind Australia's population growth, which in turn has driven economic growth" (3).

Diversity should not just be accepted. It should be considered a necessity, especially in the infrastructure sector, where there is a significant investment in large, complex building programs. Diversity brings expertise, skills, and different points of view that is

A greater focus on diversity has seen initiatives around gender equity consisting of increasing numbers without changing the organisational culture and structure.

not weighed down by old approaches.

Challenging the status quo is essential if we want to drive innovation and enhance productivity. If you want to get different outcomes, you must change the inputs, and in the professional services sector, the key input is the people.

As an example, major transport projects that are being designed by multinational consortia that bring together local and global teams.

The combination of experience delivering complex major infrastructure overseas and an appreciation of local governance, standards, and constraints is critical to successful project delivery. This diversity of expertise and perspective is also what drives and sustains the offerings of many consulting firms.

Skilled migrants can bring a mindset, experiences and, adding gender to the mix, a unique value proposition. However, employers' efforts in deriving value from this

pool of highly skilled and diverse personnel have often struggled to overcome other challenges that have prevented the 'best' people from succeeding.

The workplace has, until recently, largely remained a domain upholding traditional majority values with subconscious bias in the appointment and identification of leaders of a particular gender, age group and background.

As an example, in 2018-19 women only held 14.1% of chair positions, 26.8% of directorships, with 17.1% being CEOs and 31.5% in key management positions (4).

A greater focus on diversity has seen initiatives around gender equity consisting of increasing numbers without changing the organisational culture and structure. While the use of quota can help bring more women to the top, it may not be fostering diversity, e.g. the promoted women could belong to the majority or be adhering to the mindset of the existing system.

However, there is an opportunity to understand the uniqueness of identities and modes of thinking about the stratification of intersecting elements, such as gender, ethnicity / cultural background, ability, sexuality etc. Beyond quantitative studies reporting on numerical representation, qualitative studies help provide a rich, contextual exploration of various women's experiences.

A study from Deakin University explored how skilled migrant women of colour in management and leadership positions in Australia defined and achieved success (5). The results outlined the intersecting elements that these women had navigated to reach their respective roles. It illustrated that diversity initiatives, instead of oversimplifying differences and tackling them in sequence (e.g. gender one year, disability the next), could be tailored to embrace and leverage the complexity of a workforce.

Features Consulting Matters

Without being too academic, this is where intersectionality as a theory (6) helps us to recognise how gendered experiences are better comprehended as a sociopsychological process, occurring amidst specific interactions of race, class, gender, language, migration among other factors (6).

We must move away from the singular approach of considering inequalities as mutually exclusive - such as in only considering gender, ethnicity or sexuality at a time. By doing this, organisational strategies can examine the overlaps in these categories.

In other words, a migrant woman can identify herself as a woman, Asian and as part of the LGBTQ+ community simultaneously.

By identifying the intersectionality in diversity, organisations can look into recruitment, training & development (educating current and new staff), leadership, performance management systems to accommodate, create new standards

and expectations and most importantly, build a culture that not only encourages diversity to exist, but for it to thrive and succeed. For instance, an environment that encourages diversity would recognise and appreciate people’s contributions and eliminate structural barriers, including being prejudiced because they don’t speak in the Aussie vernacular or accent, considered dumb because they don’t speak in meetings (in certain cultures, it is considered rude to speak unnecessarily) or deemed a poor cultural fit because they do not watch the latest reality shows on television.

Such an environment can not only add value for the diverse people themselves but also to their employers, clients and the wider society.

Dr Juliana Mutum Dr Frédéric Blin AECOM

17

References 1. h ttps://conradliveris.files.wordpress. com/2018/03/gender-equality-at-work-20182.pdf 2. ABS 2019 3. h ttps://www.theguardian.com/business/2020/ aug/02/migration-australia-cliff-economyinternational-students-covid-19-coronavirus 4. h ttps://www.wgea.gov.au/data/fact-sheets/ gender-workplace-statistics-at-a-glance-2020 5. M utum, J. (2018). NESB Skilled Primary Migrant Women's Experiences, an Australian Perspective. PhD thesis, Department of Management, Deakin University.

6. Crenshaw, K. (1989). Demarginalizing the Intersection of Race and Sex: A Black Feminist Critique of Antidiscrimination Doctrine, Feminist Theory and Antiracist Politics. The University of Chicago Legal Forum, 1, Article 8.

7. Stewart, A.J. & McDermott, C. (2004). Gender in Psychology. Annual Review of Psychology, 55, 519-544.

By identifying the intersectionality in diversity, organisations can look into recruitment, training & development (educating current and new staff), leadership, performance management systems to accommodate, create new standards and expectations and most importantly, build a culture that not only encourages diversity to exist, but for it to thrive and succeed.

18

Consulting Matters Features

New Opportunities to Tackle Enduring Problems Governments have committed to a pipeline of infrastructure and built environment projects as part of the COVID-19 economic recovery. A real uplift in productivity is needed to realise the full potential of this investment.

Therefore, Australia’s economic recovery will rely on both the consulting and construction sectors of our industry working more effectivity together. Now is the time to address enduring issues. Now is the time to ask what cultural shifts are needed and how can procurement and contracting act as tools to drive that change.

Consult Australia members have shared over twenty different projects that demonstrate best practice procurement initiatives or model contracting behaviours. From these examples, common threads emerge highlighting the importance of collaboration and communication. Drawing on these examples, we propose a raft of actions that would help maximise the economic benefits from projects.

• I ndustry can be on an equal footing at bidding stage

Our work highlights that productivity gains can be found in every phase of the project; pre-tendering, tendering, contracting, project delivery and post-completion.

Streamlined procurement processes and improved contracting behaviours should not just be a short-term initiative while we recover from COVID-19. Lasting reform can create lasting productivity gains. Now is the opportunity to create a more sustainable ecosystem through actions in response to COVID-19.

There is a risk that reliance on existing procurement practices and contracting behaviours will undermine economic recovery. Unnecessarily complex and lengthy procurement processes coupled with undesirable contracting terms and behaviours have always been problematic. But with the pressure COVID-19 is putting on people and the economy, these matters become the focus of much needed action and redress.

None of the actions pictured above are radical – demonstrating that reform is not an invention test, we can learn from past projects around the country, and implement the best initiatives into future projects.

The construction industry has been categorised as inherently adversarial in nature arising from poor risk allocation. The industry cannot sustain itself in the current landscape of disputes. Contractors, consultants, and government clients all acknowledge that there must be a better way. Now is the time to re-prioritise and invest in a healthy supply ecosystem that will lead to benefits post-COVID-19. We are now ‘all in the same boat’ and the need for collaboration and appropriate risk allocation has become clear.

• Clients can gain a greater understanding the capacity and capability of the market

• I ndustry can be valued and therefore willing to invest in the project and the team •T here can be increased collaboration and trust between all parties •A ll parties can manage risks properly and promote innovation throughout the project.

These actions also deliver equal benefits to both clients and industry:

This work will soon be released as a Thought Leadership piece exploring the actions in more detail and providing project case studies.

• Clients can access industry expertise and expertise early

Kristy Eulenstein Consult Australia

• Industry can have concerns about the project delivery program, procurement methods and commercial matters addressed pre-tender • Industry can identify early the projects that best suit their capability and capacity to allocate resources and effort on a manageable number of tenders

Features Consulting Matters

19

Our new remote and agile workforce.

How do we embed and effectively support this shift?

Our new remote and agile workforce. How do we embed and effectively support this shift?

When we hear ‘new construct’, we often think of the opportunities to improve assets through smart technologies, modular design and innovative construction methods to name a few popular terms. However, in light of ongoing COVID-19 impacts on all workplaces, we should also be thinking of the environment that people in our industry are working in to deliver these innovative projects.

While some may have a sense that things will return back to normal in a post-pandemic world, a common view is the experience has, and will, accelerate the shift towards a remote and agile operating environment.

Even purely from a talent management perspective, this makes sense – how can a business attract and retain talent if they too are not following this broader shift to an operating environment that features and effectively supports remote work options?

What we have learnt over recent months is that a shift to an operating model that fully

While some may have a sense that things will return back to normal in a post-pandemic world, a common view is the experience has, and will, accelerate the shift towards a remote and agile operating environment.

integrates and effectively supports remote working, or ‘location agnostic’ arrangements,1 is challenging. The job design, working procedures, internal policies and other influences on how we work are not directly transferable from a face-to-face office environment to remote working. This also extends to the leadership and management approach, and the company’s culture.

While many employees have enjoyed the benefits of remote working, many challenges have also been experienced – particularly as businesses were on the backfoot when sudden arrangements were implemented, and from the added strain of a pandemic.

Social isolation has been a common concern about remote working, with employees missing the informal interaction of an office. Others have noted concerns about reduced access to managerial support and communication, and the lack of direct access to information.2

20

Consulting Matters Features

To help support our members with embedding the shift at scale to remote working, Consult Australia has prepared a guide summarising guidance on the topic and providing tips for individuals and managers.

So, it is clear that we should not see our implementation of remote working over the past few months as ‘done’, or that the problems arising from the change will soon go away. Instead, it is critical that businesses use the experience over recent months to now embed this work practice, and look at how it can be effectively supported on an ongoing basis.

To help support our members with embedding the shift at scale to remote working, Consult Australia has prepared a guide summarising guidance on the topic and providing tips for individuals and managers.

Through our Mental Health Working Group, we have also prepared related member guides on supporting ourselves and our colleagues in this type of work environment.

Some tips from these member guides to help with the shift to remote working include: • ‘Overcommunicate’ probably has a negative connotation, but this is important because it compensates for the peripheral communication that happens incidentally in the office and making this intentional communication in a remote environment; • Keeping employees in mind and adding a human aspect to how businesses are managed – COVID-19 and remote working have created an environment where an

empathetic style of leadership is increasing being sought by employees; • Reviewing job design, working procedures, management processes and internal policies to consider if these are still appropriate or if they can be improved for remote workers – for example, documentation processes may be more critical as a simple question over the shoulder in a workplace could take hours to resolve remotely; • Creating better ways to trust and measure the performance of employees. Remote working has exposed shortcomings to a traditional ‘bottoms-on-seats’ approach, and managers and leaders should look at ways to measure outputs and value-adds as part of the performance framework. Being clear about expected outcomes will also help mitigate trust concerns in a working environment with decreased visibility; and • Having the structures in place to help you operate effectively in a remote work environment – this could include scheduling daily catch-ups with colleagues, and establishing rules of engagement on how and when to use communication tools.

Finally, we should recognise that productivity and employee impacts from remote working, both positive and negative, are circumstantial.

Remote working is productive with the right arrangements in place, and unproductive if not. These factors, rather than the model itself, are what determines the productivity and employee benefits of remote working – and of course, our ability to embrace innovation to deliver better assets in the future.

Consult Australia’s remote work member guides are available with our briefing notes on our new website here (members only).

James Robertson Consult Australia 1

H R Magazine (UK), Making a location-agnostic model work (2018)

2

H arvard Business Review, A guide to managing your newly remote workers (2020)

Features Consulting Matters

21

The Value of Benchmarking How does your business stack up? How does your current performance compare to previous performances? How about to other businesses in your industry? What does the future look like for you, your competitors, or your industry as a whole?

The answer to these questions lies in benchmarking—but what value does benchmarking actually provide in architecture, engineering, and design businesses, and how can it be used to give your business an edge?

Accountants then convert these activities to numbers and produce a report card, which will be in the form of an income statement, a balance sheet, and most importantly a cash flow statement. Business leaders usually then turn to their CFO’s to decipher the numbers, who then describe back the activities that caused the numbers in the first place.

Conclusion

The numbers are always a reflection of the decisions that were or were not made.

Management For Design adds certainty to business decisions by combining your vision and hard data. We uncover the fundamentals of your business, identify areas for improvement and enable sound, evidencebased decisions, to move your business and projects forward confidently with fewer surprises. For more information, contact Gordana Milosevska on gmilosevska@m4d. com.au.

Benchmarking is a radar for change; in and of itself, benchmarking is only a means to an end—and it’s worthless if not accompanied by a call to change.

Doesn’t it stand to reason that if businesses want to change the numbers, they simply need to change the activities that caused the numbers in the first place?

The value is not in the benchmarking, but in the decisions you make, as leaders, to create change that will enhance your performance.

Benchmarking leads us to focus on change and provides a clear direction for the change process.

It’s not just financials that need to be measured; reputation, brand, quality of work, client satisfaction, and staff morale are equally as important. These metrics should be measured, year in, year out.

There are two components to benchmarking performance: • Comparing your business with your own historical and expected performance • Comparing yourself to the industry and other businesses By benchmarking in these areas, there will always be a call to action, a call to change.

Benchmarking can be effective in driving performance and initiating change.

For instance, for a business that’s operating in the top quartile, benchmarking could highlight areas where they are doing well and should provide a focus for how to maintain their advantage, as well as presenting an opportunity to raise their standards.

If you’re relying on quarterly management reports to keep you on track—that’s only four shots a year to identify issues and make improvements. By implementing monthly reporting, you have a lot more data and more opportunities to change course and fix problems.

You need to compare to how you are tracking yearly as well as comparing your results with those of appropriate peers, that is, businesses that are similar in size and business model to your own. Chances are that benchmarking will reveal many areas of your business that can be strengthened.

For example, your results relative to your peers may present opportunities to: • Raise your standards • Focus on growing revenue

Alternatively, for businesses in the bottom quartile, benchmarking identifies areas of opportunity where they can make improvements such as:

• Reducing your labour

• Reviewing fees

• Or take numerous other actions

• The work they are taking on • How they're producing it • Employment costs

Decision making Typically, business leaders are regularly pressed to make decisions. These decisions are then converted into activities.

• Increase your use of productivity-enhancing technologies

Measure. Assess. Create change. Ultimately, if you want to run a successful business you need to know what’s going on in your business, so you need to be measuring as you go. Monitor your progress from year to year. And then compare yourself to your peers.

Gordana Milosevska M4D

22

Consulting Matters

Want to talk insurance with someone who knows your industry?

That's why Consult Australia has partnered with brokers that we are confident really understand our industry and will also provide our members a level of service that we would be happy to endorse.

Bovill Risk IC and Planned Insurance have partnered with us for over ten years, and continue to help Consult Australia members find their way through the insurance forest for not just PI insurance but across your business insurance needs.

Contact our partner brokers now to see how they can help your business.

Protecting Professionals

Bovill Risk & Insurance Consultants www.bric.com.au

Planned Cover www.plannedcover.com.au

Chris Bovill, Managing Director PO BOX 1020 Richmond North Victoria 3121 1800 077 933 bw@bric.com.au

Simon Gray, State Manager PO Box 1983, North Sydney New South Wales, 2059 1800 077 933 sydney@plannedcover.com.au

Photo courtesy of Seb Zurcher

24

Consulting Matters Features

The Grenfell Tower Legacy: New Ways of Working Exercising what small freedoms I can during Melbourne’s Stage 4 lockdown, I’ve been walking the Tan track at lunch and listening to the BBC’s Grenfell Tower Inquiry podcast.

zinc panels with combustible aluminium composite panels. The change saved £576,000, but the Inquiry’s Phase 1 report identified the polyethylene core Reynobond ACP panels as the principal reason why the flames spread so rapidly.

Although we’re still months away from published findings, with many witnesses yet to be questioned, there are already some indications of likely contributing factors behind the fire that claimed seventy two lives in June 2017. They are eerily similar to some of the factors behind Melbourne’s Lacrosse Building fire in 2014, pointing to weaknesses built into the construction industry in both Australia and the UK.

2. S ide-lining key consultants. Fire engineer Exova provided some limited initial advice but, after the project was novated, their engagement ceased, although they did continue exchanging emails with the architects. It appears construction proceeded without specific fire engineering expertise.

As insurers tighten terms, increase premiums, or withdraw from construction risks altogether, it’s more important than ever to find solutions to these historical weaknesses. We need new constructs, a shift in philosophy around weak points in the procurement process, from tender pressures at the outset to silo behaviour during construction phase.

3. S iloing and role confusion. Rydon’s witnesses claim they had no knowledge of building regulations around fire performance of materials and were wholly reliant on design consultants and the façade contractor to advise them. Witnesses from architects Studio E, however, say that their design role was limited after novation.

On top of construction errors, these are just some of the contributing factors hinted at by witness evidence given to the Grenfell Tower Inquiry so far:

4. P iecemeal design and substitution. With key product choices not being finalised until construction was underway and relevant trade subcontractors brought on board, there was little opportunity for a wholistic review of the building design. The cumulative effect of other combustible products, such as PIR and phenolic foam insulation, was not recognised.

1. U nderbidding and cost pressure. Due to an internal error, head contractor Rydon Constructions’ bid omitted some £212,000 of costs. On top of this shortfall, Rydon’s client, Kensington and Chelsea Tenant Management Organisation, requested cost savings of £800,000. Cost cutting appears to have been a significant factor being the decision to replace the original specified

Factors like these can contribute to many other forms of defects. The extent of these has been investigated in a slew of audits and reports across Australia since 2015.

In the years following Grenfell, insurers began to respond to the heightened risk of claims.

In June 2019, a report by pwc observed how the industry was reducing capacity, adding policy exclusions, and increasing premiums and excesses, especially for fire engineers and building certifiers (Strengthening the professional indemnity insurance environment for building industry professionals in Queensland, 24 June 2019).

Since then, on top of a bad bushfire season, COVID-19 disruption has only exacerbated affordability issues (Finity Market Report, May 2020).

What will it take to reverse this trend?

The first step is reversing the surge in defective building claims. Stronger legislation may be a burden for consultants in the short term, but in the long term it is one mechanism to show insurers that the culture of the industry is changing, and new constructs are being put in place. For example, from July 2021, the new regime of compliance declarations under the Design and Building Practitioners Act in NSW may shore up some of the weaknesses suggested in the Grenfell Tower hearings.

Another factor is time. The insurance market is well known for its cyclical patterns. The hard market will eventually soften. In the meantime, a good insurance broker can help you navigate the available options in a rapidly changing market.

One last option is reducing individual practice risk exposure by means of carefully considered consultancy agreements, with a particular emphasis on defining the consultant’s construction phase role. In place of silo behaviour, the aim is to encourage principals and head contractors to put in place procedures that balance the emphasis on cost reduction, allowing time for proper completion of design and for input by all necessary specialists.

For help with that last aspect, a new law practice owned by IBL Ltd (the team behind Planned Cover) has recently started business. informed Lawyers Pty Ltd (ACN 635 862 145) provides reviews, advice, negotiation and drafting on consultancy agreements.

Wendy Poulton Planned Cover

Protecting your business Consulting Matters

25

Introducing Cbus Corporate Super BETTER SUITED INSURANCE COVER OPTIONS FOR EXECUTIVES, PROFESSIONALS AND MOSTLY OFFICEBASED EMPLOYEES.

• competitive premiums for death and total and permanent disablement (TPD) cover4

At Cbus, we understand the risks of working in the building, construction and allied industries, that’s why our insurance has catered to the needs of people working in these industries since our beginning in 1984.

• tailored education information sessions and access to financial advice

The introduction of Corporate Super means that more members can have insurance tailored to their needs and occupation.

We offer insurance cover options to meet our members’ needs, whether they spend most of their time in an office environment or undertake limited manual work6. Our occupation categories are based on the duties performed so that members can benefit from more competitive premiums according to their role.

For more information on each of the occupation categories, see the relevant Product Disclosure Statement (PDS) on our website.

Executives, professionals and mostly officebased employees will have access to better suited death, total and permanent disablement (TPD) cover and income protection as part of Cbus Corporate Super – with all the same great benefits of Cbus Industry Super. You’ll need a minimum of 50 eligible1 employees to join.

• automatic income protection5

6. Less than 20% of your job involves manual or physical work.

We cater to our industry

It is important to note that employees won’t receive automatic insurance cover if they’re under 25 years of age or have less than $6,000 in their account, unless they have elected to have cover.

If you’d like to learn more about Cbus Corporate Super, please contact your local Cbus representative. If Cbus Corporate Super is right for your business, we can provide a quote based on the number of employees and your claims history.

With Cbus Corporate Super, your business will benefit from:

Felicia Goh Cbus

•o ur experience as a long-standing super fund – we have over 152,000 employers and 759,000 members2 • f lexible insurance options – choose from three insurance designs to meet the needs of your employees •e asy super administration – SuperStream approved payment systems available •d edicated relationship managers – to assist with your super obligations

And, your employees will benefit from: • a history of strong long-term investment performance with an average annual return3 of 9.23% over the last 35 years, as at 30 June 2019 for the Growth (Cbus MySuper) option

5. T o be eligible for income protection, it must be part of the chosen insurance design and employees must be working at least 15 hours or more per week. By law, members won’t receive automatic insurance cover if they’re under 25 years of age or have less than $6,000 in their account, unless they have elected to have cover.

1. To be eligible for membership of Corporate Super your employees must meet one of the occupation categories, plus certain other conditions as set out in the Policy. If the number of employees who are members of Cbus Corporate Super falls below 30 insured members on 1 July of any year, you and your employees will be transferred to Cbus Industry Super.

2. As at 31 December 2019 3. Since inception to 30 June 2019, based on the crediting rate, which is the return minus investment fees, taxes, and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs that are deducted directly from members’ accounts. Past performance is not a reliable indicator of future performance.

4. Competitive Group Life Premiums based on a comparative assessment by The Heron Partnership in August 2019.

This information is about Cbus. It doesn’t take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement and related documents to decide whether Cbus is right for you. Call 1300 361 784 or visit www.cbussuper.com.au for a copy.

Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262

26

Consulting Matters Corporate social responsibility

Building back better – why humanitarian engineering is critical in a post-COVID world THERE HAS NEVER BEEN A BETTER TIME TO THINK ABOUT HOW YOUR SKILLS COULD MAKE A DIFFERENCE IN HELPING HUMANITY. WITH COVID-19 AND CLIMATE-BASED EMERGENCIES GRIPPING OUR WORLD, THE NEED FOR HUMANITARIAN ASSISTANCE IS ON THE RISE. At the end of 2019, the United Nations predicted that more than 168 million people would need humanitarian assistance from crisis spanning more than fifty countries. That is one in forty five people on the planet. COVID-19 will only exacerbate these figures.

At RedR Australia, we provide international humanitarian assistance, deploying skilled technical specialists to provide support when crisis or disaster strikes. Although we deploy people across a range of professions, a group of engineering professionals first established our organisation in 1973, with a vision for engineers to use their skill to help those in need.

Many years later, it has never been a better time to reflect on the importance of building for humanity. Our collective goal being, to effect positive change for marginalised and disadvantaged communities – often called ‘humanitarian engineering’.

We spoke to three people to find out why humanitarian engineering is important as we forge ahead in a fast changing world.

Fifty years ago, Arup set out principles for the firm - to have a humanitarian approach by joining with others to do socially useful work in the built environment. Arup assists those in need through humanitarian, international development and local engagement projects.

We all need to improve our ability to adapt to and recover from these rapidly changing circumstances. Now more than ever, there is a need for ‘humanitarian engineering’ in all aspects of the built environment to tackle the issue of sustainable development.

The link between our activities as ‘humanitarian engineers’ on these projects and the social outcomes they create are very tangible as we often work directly with affected communities and supporting organisations. I have experienced this myself in the Rohingya refugee camps in Bangladesh, helping to improve peoples’ living conditions through safer and more resilient shelter and infrastructure that reduces vulnerability to natural hazards.

By partnering with organisations like RedR Australia, we expand our reach and the effectiveness of our contributions and in turn, we support and amplify the work they do, creating further impact. The need for, and value of, deep and trusted partnerships like this has never been so important.

As we reach a developmental tipping point, the impacts of climate change and other global challenges are becoming increasingly obvious. The COVID-19 pandemic highlights that no place or community is immune to these impacts.

At GHD, our enduring partnership with RedR Australia has supported our employees to respond to global emergencies when needed most.

The COVID-19 pandemic has brought the need to support our local communities even more sharply into focus. The pandemic also highlights the need for humanitarian engineering solutions that are affordable, sustainable, utilise local resources and driven by the local community.

Through closer partnerships between engineering and technology companies like GHD and humanitarian organisations

If there is one thing that we have learnt during the COVID-19 pandemic, it is that no matter where you live, our lives are interconnected.

The time is now for us to work together at a global level to prepare for humanitarian disasters and conflicts ahead and set communities up to respond. We have a role in providing communities with specialist skills and expertise so they are able to respond during a disaster.

Tom is the Disaster and Recovery Coordinator for Arup's Community Engagement Programme and a RedR Australia Humanitarian Standby Roster member.

Tom Hallewell, Civil and Structural Engineer, Arup

like RedR, we must continue to evolve how we deliver humanitarian engineering solutions. These solutions need to be founded on capacity building, genuine collaboration and embracing the transformational technologies that are emerging.

At GHD, we are proud of the work we do in collaboration with RedR Australia as we strive to fulfil our purpose of, “Together with our clients, creating lasting community benefit.”

Chris French, Operations Manager – Victoria, GHD

For those engineers who have offered their skills and deployed into a humanitarian crisis, they come away with a valuable experience. Whether they do it for a short or long period, the skills gained will pay off in the future – both personally and professionally.

Kirsten Sayers, CEO, RedR Australia

S I 9

1 ID

V CO

UM

o

e pp

el

oh st

ur

d ple

hi

t ing

e

im st

n

u of

e

c pre

ed

e dn

te

n de

27

ill

k rs

ou y e

A

A B O GL

C N IA

TAR

I N A

LH

S I S RI

Consulting Matters

Us

The skills, knowledge and expertise of our people are crucial to ongoing humanitarian efforts.

RedR Australia’s humanitarian standby roster enables United Nations agencies, international non-government organisations and the Australian Government to access our trained specialists in varied disciplines ranging from information management through to public health during a humanitarian crisis.

.au

J

t redr.org a l a n io s s fe ro p d le il oin as a sk

28

Consulting Matters Project case studies

Wellness as a catalyst to improve Workplace Culture Beiersdorf, the brand owners of NIVEA and Elastoplast, recently achieved the coveted WELL Certification from the International WELL Building Institute, for the refurbishment of their Head Office in a 30-year-old building in North Ryde.

WELL Building Standard is the leading tool for advancing health and wellbeing of occupants in buildings and is recognised globally.

Through their journey, Beiersdorf has demonstrated that: • Existing workplaces and buildings can achieve WELL Certification; • Off-the-shelf products can help achieve WELL requirements and minimise costs; and, • Wellness interventions can improve the financial bottom-line of a business, through improved staff engagement and building a positive workplace culture.

Northrop’s Buildings Performance and Wellness Lead, Pratik Shah assisted with the project as a WELL Accredited Professional from conception through to certification.

A massive hailstorm in 2015 resulted in the collapse of Beiersdorf’s Huntingwood Warehouse. This presented an opportunity to expand their existing space in North Ryde to house Beiersdorf’s entire Head Office team, some of whom were previously located at Huntingwood.

In addition, they sought to improve employee wellbeing, engagement, innovation, communication and sustainability, within a key objective of the project: one workplace, one culture, under one roof.

Due to the existing equipment and plant, there were issues surrounding the indoor air quality, thermal comfort and acoustic comfort. These issues were addressed by the different disciplines and the best solution implemented.

For instance, the mechanical equipment did not have to be upgraded or replaced. A review found that the fans in the air handling system could accommodate higher-efficiency filter resistance (that can capture finer particulates and pollens).

Another challenge was designing the Circadian Lighting system - lighting that

In addition, they sought to improve employee wellbeing, engagement, innovation, communication and sustainability, within a key objective of the project: one workplace, one culture, under one roof.

supports sleep-awake circadian rhythms in the occupants. This was addressed by selecting an off-the-shelf product that theoretically demonstrated compliance with the required vertical lux levels (equivalent melanopic lux in WELL Building Standard v1). After careful layout and modelling by the lighting supplier, it was deemed suitable.

Beiersdorf’s NIVEA brand has several patents associated with the fragrances in its products. This turned out to be a major concern with regards to fragrance-free (fragrances are an irritant in the respiratory system) hand wash liquid soap requirements for WELL Certification. Ultimately, after a long search, a fragrance-free WELL-compliant product, from another manufacturer, was installed in the workplace.

One of the innovations that resulted out of the WELL Certification, was the procurement of a cleaning service that do not use chemicals. Cleaning is conducted through Stabilised Aqueous Ozone (SAO), which is produced on-site and has proven properties to kill viruses, bacteria and other pathogens.

And with no odour, it does not affect the indoor air quality and is also safe for the cleaning staff.

Other initiatives include Biophilic (human’s innate desire to be surrounded by nature and

Project case studies Consulting Matters

other life forms) workplace design principles, healthy food and beverage containing vending machine and solar photovoltaic array on the roof of the building.

Beiersdorf conducted a survey pre and post refurbishment finding that staff thoroughly welcomed the new workplace with highquality wellness initiatives. Whilst the post refurbishment scores have improved overall, the standouts were for Ideation and Creative Thinking (improved over 14 times as compared to before), Collaboration (over 10 times), Health and Wellbeing (almost tripled) and Team Spirit (doubled), leading to an overall culture of positive energy, innovation and inspiration.

Beiersdorf deployed a Gallup study on

employee engagement rates and have found that the ratio of engaged to actively disengaged employees have improved from 5.56 : 1 in 2015 to 8 : 1 in 2018, which is remarkable when compared to the Australian average of 1 : 1.

High engagement rates not only correlate to a better perceived productivity, but also increased employee retention, which significantly improves the financial bottomline of a business.

Achieving WELL has not only delivered a great workplace for Beiersdorf but also provided value to the business.

Beiersdorf has paved the way for workplaces in existing buildings to pursue WELL

29

Certifications. Additionally, they have demonstrated that it’s possible to achieve WELL in businesses outside of the property and construction sector – a first as far as we know.

At a time when the value of the workplace is increasingly questioned, engaging in a WELL Certification process could become enormously important to many organisations seeking to attract staff back to their offices to foster workplace culture!

Pratik Shah Northrop Consulting Engineers Interested in achieving WELL Certification for your workplace or building? Contact Pratik Shah at pshah@northrop.com.au or on 0433 242 939 for more information.

30

Consulting Matters Project case studies

Kimberley Ports Authority: Wharf Extension Underdeck Access Involving the conceptual development, detail design and installation of an access system for the routine inspection and maintenance of underdeck assets, including piles, headstocks and services along the full length of the Broome Port Wharf in the northwest of WA, the wharf consists of the original portion, constructed in the 1960's, and the later extension constructed in 2007. A simple access system is installed to the soffit of the original wharf deck but not to the wharf extension.

Wave International was commissioned to perform the detailed structural and mechanical engineering design for the wharf extension access system and develop solutions to numerous challenges arising from the client’s design brief, the operational environment, existing constraints, and the contractor’s execution methodology.

Figure 1 – Elevations of new underdeck access trolley – boom arms extended

Significant for numerous stakeholders, in addition to the extension of asset life for the client, further economic, safety and environmental benefits were to be realised.

For example, prior to the new installation, all inspection and maintenance works under the wharf extension had to be completed using cantilevered / hanging scaffolding, top-side mobile cranes, boats and barges, attracting additional overhead costs and increasing the risks to maintenance crews. The new access system sought to mitigate these risks and the design requirement for full encapsulation, further enhanced safety and ensured any negative environmental impacts, particularly from blasting and painting operations, were minimal.

The design portion of the project, though small in scale and dollar value as far as engineering projects are concerned, was big on innovation combined with solid, firstprinciples engineering. The final design of the access system (shown in Figures 1 to 3), is, put simply, a travelling personnel basket.

It allows for complete access to all areas of the headstocks and piles within the tidal zone for up to four people and tools, under various combinations of dead, live, wind and wave loading conditions. It consists of an upper steel frame to house the main driving components, wheel bogies and slewing frame, with aluminium framing for the walking deck, driving cabin and extending boom arms to help reduce the overall weight.

Figure 2 – Plan view of new underdeck access trolley

Project case studies Consulting Matters

Figure 3 – 3D model of new underdeck access trolley

Figure 5 – Photograph of new underdeck access trolley during rail installation works

Figure 4 – Drive mechanisms of new underdeck access trolley

The driving mechanisms are shown in Figure 4. The main drive can be operated by hand or small battery powered motor. Each drive wheel has a pair of adjustable compression springs for setting the necessary frictional resistance while maintaining reasonable manual effort to generate linear motion. The slewing mechanism allows for 3600 rotation and consists of a hand driven gear box and shaft turning an internal ring gear. The boom arms are extended via a manually driven rack and pinion system. All materials for gears, drive and slewing wheels were carefully selected for their durability against chorides, hardness and bearing strength.

The contractor’s work methodology required the trolley to be utilised for the installation of its own travelling rails. To this end, a boom extension piece was designed to increase the total working area from the backside of one

31

headstock to the next. Each new section of rail was loaded onto the trolley and hoisted from temporary attachments before being welded in place. This process was repeated until all rails were installed. Figure 5 shows the trolley during the rail installation phase.

The project utilised a 3D modelling environment, overlayed on point cloud scans of the existing wharf. This ensured all dimensional issues, clashes, and how well the rail bends would be negotiated could all be confirmed prior to fabrication. This 3D design environment, innovative thinking and good engineering all contributed to the success of the project which achieved its design goals while solving the numerous competing constraints.

Lionel Trewhella Wave International

Online training available!

Thinking about professional development?

Consult Australia offers a number of intensive training programs to provide consultants with invaluable skills, knowledge and advice. This powerful training puts you in control and allows you to better protect your business.

For more information visit: www.consultaustralia.com.au/education

Contracts for Consultants

Safety in Design • Designer duties under current legislation

2020 dates: coming soon

Learn vital information about: • Contract formulation & terms

• Hazard identification tools

• Contractual relationships

• Risk assessment, control, and management

• Liability & Insurance

• Safety in design procedures and documentation

• Professional indemnity insurance

• Onerous contract terms • Dispute resolution

• Best practice examples

Facilitated by Tony Horan - one of the most knowledgeable and experienced barristers working in the construction industry in Australia.

Member price: $1,908 Non-Member price: $3,339* Includes the Safety in Design Tool Kit which is free for members.

*

The Role of the Superintendent

2020 dates: 22-23 October 19-20 November

2020 dates: 18 November

Topics include: • Scope of duties • The dual roles of the Superintendent • Decision making and conveying information • Liability of the Superintendent • Insurance issues

Member price: $3,446 (Online course $3,101 incl GST) Non-Member price: $4,368 (Online course $3,931 incl GST)

Did you know that Consult Australia also offers in-house training?

Consult Australia can run our Contracts for Consultants, Role of the Superintendent and Safety in Design courses for your team in-house and can also give you the option to tailor the content to specifically meet your firm’s requirements.

Facilitated by Tony Horan - one of the most knowledgeable and experienced barristers working in the construction industry in Australia.

Prices for in-house courses are very competitive and you can get more information here or by emailing education@consultaustralia.com.au.

Member price: $1,750 (Online course $1,575 incl GST) Non-Member price: $2,343 (Online course $2,108 incl GST)

Note only online courses are being currently offered.

These will be run via video conferencing

Sept 2020

Learn vital information about: