ISSUE 30
London commercial sector Leading the way out of recession?
Also in this issue: Saudi improves water services Solar towers, Arizona Stavros Niarchos Foundation, Athens Oman invests in aviation
CONTEnTS 4
The National September 11 Memorial & Museum Dedication ceremony and official opening held on September 11 2011
6 Stavros Niarchos Foundation Cultural Center Greece’s largest cultural/educational project
Solar Tower Technology, Western Arizona 8 EnviroMission develops innovative renewable energy project
PHOTO BY: AMY DREHER, COURTESY 9/11 MEMORIAL
Oman Invests in Aviation Sector 10 Ambitious airport plans give major boost to tourism and trade
Developing Out of Recession 12
Happening any time soon in London market?
Saudi Arabia Improves Water Services 14
National Water Co modernises and expands in water-scarce Saudi
Counting the Cost of Heritage Assets 16 Achieving better understanding of building conservation costs
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Rail Industry Unlocking the potential
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Whole Life Carbon
22
Building Information Modelling
Tools for competitive advantage
A transformation in cost and asset management
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Welcome to the second Solutions since I took over the role of CEO of Worldwide Operations for Faithful+Gould. International markets remain challenging as economic instability continues; however I have great pleasure in being able to profile a number projects that are engaging us at Faithful+Gould. The aviation sector is proving relatively robust at the moment and is becoming one of our busier areas of business. Page 10 takes a look at Salalah Airport in Oman, which, together with Jeddah Airport in Saudi Arabia, is helping to build our Middle East aviation expertise. On page 22 we discuss some of the implications of Building Information Modelling (BIM) for the construction industry. This virtual approach to design and construction is changing the industry’s traditional processes and, as both public and private sectors begin to mandate BIM as part of their procurement requirements, we are actively leading and supporting many BIM-driven projects around the world. We are proud to be involved with the National September 11 Memorial, New York City’s newest landmark and the first permanent part of the new World Trade Center development to open. Read more about our role on page 4. For many years we have supported clients in the energy sector, building strong relationships with major oil corporations and electricity providers. Increasingly we are transferring many of our skills to new energy approaches and technologies, from photovoltaic panels in Singapore to carbon benchmarking expertise in New York City. We are especially excited to be working on EnviroMission’s cutting edge solar tower development in western Arizona and we profile this project on page 8.
We are pleased to say that in order to support work in the renewable and nuclear energy sector across Europe, we will be opening an office in central Paris before 2011 draws to a close, which will provide us with an exciting start to the New Year. Strategic asset management is becoming increasingly important to the way we support our clients, across a number of different sectors including energy, transport and government, as they invest billions of pounds in maintaining, renewing and enhancing infrastructure and property assets. We are running a series of strategic asset management seminars throughout the UK; please log on to our website or follow @JimMacFarlane1 on Twitter. We continue to provide client information around embodied carbon, an area beginning to be driven by government and industry bodies. On page 20 we discuss some of the carbon tools we are able to offer. I appreciate your interest in Faithful+Gould and I hope you’ll find Solutions engaging and relevant to some of your interests. Please get in touch with us if you’d like to know more about any of our services or initiatives. Additionally you can follow us on Twitter, join our LinkedIn discussion group or sign up for our bimonthly email communications. I’ve also taken the plunge into the world of Twitter so you can even follow me at @LawsonWorldwide if you’re interested!
Donald Lawson CEO Worldwide Operations
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the National September 11
The National September 11 Memorial became New York City’s newest landmark on the 10-year anniversary of the attacks, during a moving dedication ceremony for victims’ families on September 11, 2011. The Memorial welcomed the general public a day later as the first project of the World Trade Center redevelopment plan to open at the 16-acre site in lower Manhattan. Former US President George W Bush and President Barack Obama attended the commemoration ceremony on the 10th anniversary, which included moments of silence and musical performances by Paul Simon, the Brooklyn Youth Chorus and Yo-Yo Ma. The names of the victims of the three attack sites – the World Trade Center, the Pentagon and Shanksville, Pa. – were read aloud at the ceremony. On the day following the commemoration, the Memorial opened to the general public. An online reservation system allows visitors to reserve free visitors passes, necessary given the ongoing construction on other World Trade Center projects surrounding the Memorial.
PHOTOS BY: JOE WOOLHEAD, COURTESY 9/11 MEMORIAL
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The 9/11 Memorial is a tribute of remembrance and honour to the nearly 3,000 people killed in the terror attacks of September 11, 2001 and in February 1993. Each of the Memorial’s twin reflecting pools are nearly an acre in size and feature the largest man-made waterfalls in North America. The pools sit within the footprints where the Twin Towers once stood. Architect Michael Arad and landscape architect Peter Walker created the Memorial design called “Reflecting Absence.” It was selected from a global design competition that included more than 5,200 entries from 63 nations.
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The names of every person who died in the 2001 and 1993 attacks are inscribed into bronze panels edging the Memorial pools, a powerful reminder of the largest loss of life resulting from a foreign attack on American soil and the greatest single loss of rescue personnel in American history. Unlike any other memorial in existence, the names of the victims are arranged not in a conventional order, but by “meaningful adjacencies.” These layers of meaning reflect where people were, who they were with on 9/11, and more than 1,200 requests made by victims’ next of kin for individual names to be next to one another were honoured. The bronze name panels are fitted with a glycol system, to provide cooling during the summer months and heating in the winter months. The 9/11 Memorial Museum will be the country’s principal institution exploring the implications of the events of 9/11, documenting the impact of those events and exploring 9/11’s continuing significance. The Museum’s 110,000 square feet of exhibition space will be located within the archaeological heart of the World Trade Center site — telling the authentic story of the events of 9/11 through multi-media displays, artefacts and personal accounts. The Memorial plaza will serve as an 8-acre green roof to the Museum and has been created as one of the most sustainable, green plazas ever constructed. The Memorial project is pursuing Gold certification under the LEED for New Construction program of the U.S Green Building Council and is designed to satisfy the requirements of New York State Executive Order 111 and the WTC Sustainable Design Guidelines. The irrigation
“ This is a special project for Faithful+Gould. We feel privileged to make a contribution at this hugely significant site.”
PHOTO BY: AMY DREHER, COURTESY 9/11 MEMORIAL
and storm water harvesting systems will ensure sustainable treatment of the site and conserve energy, water and material resources. Faithful+Gould has executed programme management, project management, cost planning and estimating, cost management, scheduling and dispute resolution services for the 9/11 Memorial and the Lower Manhattan Development Corporation (LMDC) for eight years. With four on-site staff members dedicated to the project and numerous office-based staff members, we remain committed to this historic project. Our programme management services contend with a physically constrained site, facilitating operation of an island of public space within a large and
complex construction arena. The cost management is carried out within a context of funding limitations running parallel with certain sensitivities and public expectations. The Faithful+Gould team was proud to attend the Memorial’s opening ceremony. Tom Jaske, Vice President, said: “This is a special project for Faithful+Gould. We feel privileged to make a contribution at this hugely significant site. The dedication ceremony was very moving and naturally the mood was sombre. Yet once everyone got inside the plaza and started to experience the pools and names parapets, there was an amazingly uplifting atmosphere and a real sense of looking forward and healing.”
For further information contact Tom Jaske on +1 212 252 7070 tom.jaske@fgould.com
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A FOCUS FOR NATIONAL PRIDE AND GLOBAL INSPIRATION
FOUNDATION CULTURAL CENTER
Twenty-first century culture, architecture and sustainable design are coming to the ancient city of Athens in 2015, with the creation of the iconic Stavros Niarchos Foundation Cultural Center. Designed by Pritzker Prize winning Renzo Piano, the Stavros Niarchos Foundation Cultural Center (SNFCC) will house the National Library of Greece, the Greek National Opera and an extensive new public park. One of the largest construction projects in recent Greek history, the Center’s construction will be funded exclusively by the Stavros Niarchos Foundation, an international philanthropic organisation. The Foundation provides global support to education, social welfare, healthcare, the arts and cultural programmes, many of which promote Greek heritage and culture. Security of funding has protected the SNFCC project during global recession and reinforced its importance to the local economy. Once completed, the project will be handed over to the people of Athens to be operated and controlled by the state. The SNFCC is the first private-public partnership of its kind in Greece, and the country’s largest cultural/educational project. Located 4.5 km south of central Athens on the edge of Faliro Bay, the Center transforms the neglected
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187,800 square metre site formerly used for the 2004 Olympics. The building is designed to blend into the slope of the park, combining the arts and green space experiences. The sea, which has played a vital role in Greece’s history and culture, has provided major inspiration for the design. Linking this, a canal will run parallel to the existing esplanade, providing further public space, while also fulfilling a need for flood-protection. A large ‘agora’ space provides open air performance opportunities, in addition to the planned open space within the park. The SNFCC is expected to have an immediate impact on the local economy, providing jobs and infusing capital into a challenging economic climate. Looking to the future, the Center should serve as a catalyst to revive the adjacent waterfront area and bring a new arts community to the neighbourhood. Wider legacy investment benefits are also expected, with the project’s design and management excellence already inspiring interest in local built environment opportunities.
Faithful+Gould is providing project management, cost management and sustainability services. This is a visionary, multiple stakeholder project of considerable complexity, conducted in a visibly high profile arena. Aspirations and ideals are high and the Center must satisfy the individual needs of each facility. Challenges include co-ordination of a large worldwide programming team, with high levels of specialist consultant involvement, bringing cultural and geographical diversity.
Faithful+Gould has been working with the British Embassy to showcase UK engineering, construction and design excellence with a joint reception at the British Ambassador’s residence in Athens held on 30 June. Celebrating the completion of the SNFCC’s architectural designs, the event was attended by leading construction figures including key stakeholders and local partners from the SNFCC project, Arup, Expedition, TPC, AMA, Betaplan, LDK, Omete, the British Embassy in Athens, the British Library and Atkins.
Environmental issues are high priority and SNFCC is the first project in Greece to register with the US Green Building Council (USGBC). The project is aiming to achieve zero net operational carbon and a minimum of LEED Gold rating. Faithful+Gould’s LEED assessment will document and verify the project’s sustainability credentials, a new process in Greece. As with the project’s health and safety requirements, the sustainability accreditation process is setting new standards locally.
Sotiris Leontaris, Head of Commercial Section for the British Embassy, said “British building companies are exporting enormous amounts of expertise and technical assistance advising clients on some of Greece’s most important building projects such as the SNFCC and many PPP projects. There are excellent opportunities for UK firms to build their export portfolios in Greece and last night’s reception was all about showcasing the great work that British firms are doing and promoting these opportunities to new companies.”
For further information contact Martin Hirko (Athens) on +30 210 724 1311 martin.hirko@fgould.com or Neil Clemson (London) on +44 (0)20 7121 2121 neil.clemson@fgould.com
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TOWER Technology Western Arizona An ambitious solar energy project is coming to western Arizona. A 2,500 feet-tall tower will form the centrepiece of a non-polluting power plant capable of delivering large amounts of non-intermittent competitively priced green power that does not use any water in the power production and cooling cycles. Twice the height of the Empire State building, the iconic solar tower will instantly become one of the world’s tallest buildings. Once completed, it will produce clean, renewable power with virtually no maintenance until it’s more than 75 years old. The Solar Tower will offset one million tonnes of greenhouse gases per year and will save the use of up to one billion gallons of potable water annually – water that is typically associated with traditional power generation methods. This is the first of two solar tower developments in Arizona, where EnviroMission, developer of innovative large scale renewable energy projects, has a Power Purchase Agreement to sell 200MW of solar-powered electricity to the Southern California Public Power Authority (SCPPA). Each 200MW solar-powered power station will have the capacity to supply clean renewable energy to more than 100,000 typical US households.
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EnviroMission has taken four years to assemble the right team to deliver the project and to assemble the most appropriate land for their initial projects. The scale of the land being acquired is comparable to the amount that would be required to produce a similar amount of energy through other solar technologies. A pilot facility using similar technology operated in Spain during the 1980s, but only produced around 50 kW of power. Collectively, the towers will occupy approximately 10,000 acres of land. As part of an international project team led by Arup, Faithful+Gould is providing project management and cost management services, from the Solar Tower’s concept design stage through to construction and project operation. We bring local expertise and on-the-ground presence in Phoenix, where EnviroMission has established its US headquarters. This is a project of considerable complexity, both technically and logistically. Local opinion is largely in favour, with the nearest cities, Parker and Quartzite, standing to benefit from the increased stimulus brought by the scheme. EnviroMission also plans to lead briefings and interactions with power authorities and councils in the southwest, as well as analysts in the finance sector within the US to provide real time business advantage for development success in the region.
EnviroMission Chief Executive Roger Davey said, “Faithful+Gould will provide vital local expertise and services for Solar Tower development that will meet the terms of delivery of EnviroMission’s power purchase agreement with the Southern California Public Power Authority.” Faithful+Gould has many years’ experience of supporting clients in the fast moving energy sector and we have forged strong relationships with major oil corporations and electricity providers. We are now successfully transferring many of our skills into the renewables market, enhanced by our previous experience in Europe which includes the UK industry’s offshore developments. We offer project management and cost management services to financiers, utility companies and developers. As the US government
continues to fund initiatives and seeks transparency on costs and value for investment, we can also provide timely and concise reporting for those projects subject to public scrutiny. Recently we have supported clients with onshore wind, hydro and wind renewable energy projects, solar thermal electric, photovoltaics, combined heat and power (CHP)/cogeneration, and other distributed generation projects. We have also provided input on biofuels pilot projects sponsored by several major oil companies, and feasibility study support for steam and power generation (cogeneration) using waste heat and steam from existing refineries. As new technologies emerge and become commercialised, our multi-disciplinary team continues to develop its cutting edge consultancy role.
For further information contact Adrian Smith on +1 602 445 3582 adrian.smith@fgould.com
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Oman
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invests in
“ The improved airport will underpin social, economic and tourism development.”
Once the least developed aviation sector of the Gulf Cooperation Council (GCC) member states, Oman’s ambitious airport plans represent a major boost to tourism and trade. The government’s Vision 2020 plan focuses on the Sultanate’s diversification strategy away from energy. The plan highlights the tourism industry as an important source of employment for its young and fast growing population of three million, and a significant contributor to future economic prosperity. The development of Oman as a transit airport hub will also play a critical role. The Ministry of Transport and Communications is overseeing the expansion and upgrade of Muscat and Salalah airports, alongside development of domestic airports in Sohar, Duqm, Ras al Hadd and Adam. The new terminal at Muscat International Airport is due for completion by 2014 and will have capacity for 12 million passengers annually. Further expansions planned in three subsequent phases will eventually boost the airport’s annual capacity to 24, 36 and 48 million passengers. Salalah Airport is situated in the city of Salalah on the coast of the Arabian Sea in the South West of Oman, approximately 1000km from Muscat. The improved airport is intended to become a gateway, underpinning social, economic and tourism development in Dhofar Governorate. Salalah is already a popular destination with regional and international tourists during the Khareef (south east monsoon) season. Some 455,000 passengers
passed through in 2010, with anticipated capacity expansion to one million passengers annually when the upgraded airport is operational by 2014. The airport design allows provision for straightforward future expansion. A new 71,000 square metre passenger terminal is at the heart of the modernised facility. A four kilometre runway will accommodate the largest civilian aircraft, alongside air traffic control tower, data centre, baggage handling, maintenance, repair and overhaul facility, fuel farm, catering and ancillary buildings. A cargo terminal capable of handling up to 100,000 tons of air freight per year will also be constructed as part of the project. The facility will serve as a domestic hub for sea cargo in conjunction with the Port of Salalah and the Salalah Free Zone. Faithful+Gould is providing commercial services on the project. We have a global track record of project and cost management work in the aviation sector and our Middle East team is also working on the expansion of the King Abdulaziz International Airport at Jeddah in Saudi Arabia.
For further information contact Wilfred Asamoah on +968 2456 0478 wilfred.asamoah@fgould.com
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Developing out of
recession Happening any time soon?
Cranes have returned to the London skyline with some landmark buildings underway. The Leadenhall Building (the Cheesegrater), the Shard, London Bridge, and the enabling works to Bishopsgate Tower (the Pinnacle) are all encouraging signs. The £16 billion Crossrail project is also evidence of good news, and the London 2012 Olympics is ongoing. London’s real estate has strongly outperformed the rest of the UK during 2011 and this increasing regional variation looks set to continue. However the RICS UK Commercial Market Survey Q3 2011 revealed that improvements seen in the commercial property market in the first half of the year faltered during Q3 2011 as occupier demand fell back for the first time in 12 months. The RICS reported that demand in London’s commercial property market, which had looked much stronger, failed to increase, due to the uncertain outlook for the wider economy which is impacting
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negatively on demand. Rental expectations have weakened over the quarter but the central London office market was highlighted as continuing to show a positive trend for future rents, albeit a flatter one than earlier in the year. Faithful+Gould’s understanding of the market is also informed by regular meetings with industry leaders from among our client base, where attendees share opinion, experience and best practice. Insights from our most recent London commercial client event showed general agreement that the London commercial market is still holding up relatively well, while acknowledging that uncertainty will continue in the light of overall prospects for the UK economy and the sovereign debt crisis in Europe. With our event focused on ‘Developing out of recession’, attendees shared a prevailing mood of caution, especially around City commercial developments, where sizeable schemes may secure planning permission but build-out is usually on hold until significant pre-lets are in place. Some developers reported more aggressive activity in the West End and Victoria, with land acquisition deals
forging ahead quickly, and both new build and refurbishment markets showing relative buoyancy. The residential market also remains optimistic, according to our client round table, with the good to high quality schemes retaining pre-recession values. The appetite of foreign investors continues to underpin a healthy level of interest in the capital’s residential real estate. Larger developers are often turning towards the joint venture route, attractive in terms of investment and risk sharing. We’re seeing some developers link with like-minded companies, others are dealing with investment partners. A partnership ethos was also discussed in relation to the supply chain. Here, empathy was highlighted by many developers, emphasising the need to maintain robustly performing main contractors, sub-contractors and consultants. Opinion centred on the likelihood of tender prices remaining squeezed for some time to come, with the inevitable build-up of claims to increase costs. It’s a good time to get good deals, but, with companies tendering at no profit, significant risks need to be identified and actively managed.
An upturn in repair and maintenance of assets was also reported by our clients. Companies are focusing on their existing buildings, seeking more efficient asset management and operation. In the current climate, refurbishment is an easier way to bring Grade A commercial space to the market. At our round table client event, talk turned to the question of whether the government could do more to help developers lead the way out of recession. Government stimulus for the private sector, in the shape of land availability deals, helps but perhaps does not go far enough. Frustration with the London planning applications system was discussed, with developers commenting that they want to see more engaged, resourced and responsive authorities. Somewhat mixed messages are emerging from government, the media and our own client base, and uncertainty abounds. It seems that we are unlikely to be developing our way out of recession in the current conditions and that, despite clear regional advantages, London is in for the long haul like everyone else.
For further information contact Ian Metcalfe on +44 (0)207 121 2121 ian.metcalfe@fgould.com
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.
improves water services With its construction industry traditionally overshadowed by the much smaller UAE, Saudi Arabia’s pace of development has been cautious in recent years. As global recession has shifted the focus away from the Gulf’s real estate market however, Saudi’s growing infrastructure opportunities have moved into sharp focus. Economic reform underpins the Kingdom’s diversification into non-oil sectors. A more liberal business environment is designed to attract inward investors and position the Kingdom as one of the area’s most important financial centres. Although the state retains the dominant role in the economy, the government is encouraging the participation of the private sector, particularly in services and utilities. As one of the world’s most water-scarce locations, and with a growing population of 26 million, Saudi must invest heavily to meet demand for potable water and for sewage and wastewater services. To manage water resources efficiently, an extensive privatisation programme has been launched, creating the National Water
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Company (NWC) to take responsibility and to manage the delivery of water services to the public. Modernising and expanding the sewage system is therefore vitally important. The percentage of the population served by an integrated sewage and wastewater system varies from city to city. Some city neighbourhoods depend upon septic tanks drained by wastewater tankers. Priorities include connecting more homes to the wastewater collection system, ensuring a continuous supply of water, exploiting re-use of treated wastewater and minimising water losses. Environmental, renewable energy and ecosystem analysis is also part of the planning. Work is underway in Jeddah and Riyadh and lessons learned will be transferred to other cities in the Kingdom.
The projects’ technical solutions bring significant design and engineering challenges, alongside a pioneering PPP model that demands a culture shift for the Kingdom’s construction industry. NWC aims to deliver strong performance through a commercially viable organisation. The company is therefore keen to adopt global contracting methods, embracing international standards of programme and project management and enhancing operational efficiency. With a focus on streamlining processes, slimming hierarchical structures and adopting FIDIC based contracts, NWC are exemplifying practices which other KSA government departments and PPP ventures may choose to follow in the future. Faithful+Gould was appointed to assist and structure NWC’s in-house project management unit. Our role includes assessment of ongoing projects, together with delivery of the project management governance systems for NWC’s corporate headquarters and the Riyadh and Jeddah business units. Our input provides a tailor-made project and commercial management framework that facilitates timely completion of current and future projects, appropriate utilisation of financial resources and
delivery of NWC’s business aims. The scope of services includes capacity building and knowledge transfer as well as functional management responsibilities within the business units. Our training role will assist NWC to set up project management units within their organisation. We currently have a team of 18 committed to the NWC project. The schemes are already making significant improvements to the comfort, health and safety of the population. Following serious floods in 2009, NWC succeeded in emptying the city’s infamous sewage lake nine months ahead of schedule, Faithful+Gould was part of the NWC project team which achieved this successful result. Faithful+Gould has been active in the Middle East since 2004. We have extended our regional capability by opening an office in Riyadh, following our commercial registration in January 2009, to focus on the rapidly expanding Saudi market. We anticipate growing demand from government ministries in the region, for support in their capital investments programmes. In a similar capacity we have been awarded a contract to support neighbouring Kuwait’s Ministry of Public Works.
For further information contact Mike Ninos on +966 1462 8770 mike.ninos@fgould.com
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the cost
of heritage ASSETS
The heritage sector has faced difficult times during recession, including public expenditure cuts, uncertainty about future levels of funding, and reductions in resource at national heritage bodies such as English Heritage and Natural England. However there are also some positives. Domestic tourism, including the prospect of the 2012 Olympics, remains relatively strong and is still the UK’s third largest export earner behind the chemical industry and financial services.
Awareness of our collective past makes a vital contribution to our experience of the present. A sense of place and a sense of history combine to inspire residents and visitors alike. The challenge is to balance the conservation of our heritage with today’s social, cultural and economic needs.
The British Museum was the most popular attraction in the UK in 2010, welcoming 5.8 million people through its doors. Outside of London, Edinburgh Castle is the most popular tourist destination for overseas visitors, attracting more than 1.2 million each year. Traditional buildings are a vibrant part of the built environment, requiring sensitive and timely conservation, repair and maintenance, whether or not heritage is the core business of the building. Not every heritage asset is the typically imagined historic building however. English Heritage refers to “palaces and piers, statues and shipwrecks, archaeology and archives, moats and mills, stately homes and shopping centres, maisonettes and megaliths.1” 1
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English Heritage, Corporate Plan, May 2011
Heritage has not traditionally been part of the building design process, although we are now seeing some changes in perception, with larger projects recognising the benefits of a more integrated approach. Just the word “heritage” itself can ring alarm bells as clients often assume that costs will soar if there is any element of historic fabric. This is not always the case. Informed and sensitive cost management will ensure that costs are transparent and that there are no unexpected scenarios. Defining significance is at the heart of heritage projects. What exactly denotes the asset’s important status? What is the inherent special interest? Particularly if heritage is not the core business area, a clear understanding of significance will provide a robust basis for decision making and allocation of resources. Establishing this is often seen as an additional cost and as an area for academia rather than building conservationists, but there are clear benefits from incorporating this information into the design, planning and asset management processes from the outset. Listed buildings add to the challenge, although not every heritage asset is statutorily designated. Listed buildings typically have very brief descriptions on register that don’t always satisfactorily define their significance. There is also often a lack of awareness in the built environment professions about the nuances. A common misconception is that only the façade is listed, whereas in fact the whole building is affected.
Investment in heritage buildings, estates and infrastructure typically lags behind operational funding allocation. Capital works usually form part of multiple stakeholder projects with competing interests and specialisms. Maintenance is often reactive instead of proactive, and in the current economic climate the focus may be on patching up the building while waiting for more extensive repairs to be funded. Often there is the misperception that there should never be any changes to the fabric of our historic building stock. On the contrary, today’s approach is more proactive than ever and the focus is on managing change rather than avoiding change. Effective cost control should encompass risk mitigation, which includes the avoidance of harm and reputational risk, due to decay of historic fabric or inappropriate repairs. The emphasis is on cost management and asset management strategies that offer value for money as well as securing the heritage asset for future generations. Faithful+Gould offers cost and project management, building surveying and heritage consultancy services to the heritage and arts sectors. Our heritage portfolio includes the British Museum, the Imperial War Museum and the Grade II* William Morris Gallery in Waltham Forest, currently being developed to create a first class visitor facility and a centre of excellence for the study of William Morris and the Arts and Crafts Movement.
For further information contact Richard Stocking on +44 (0)20 7121 2121 richard.stocking@fgould.com
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Rail Industry
Rail projects continue to be strong performers in the UK, Europe and the US, although sector growth is still subject to financial challenges in the current economic uncertainty. The need for modal shift is driving significant plans in the Middle East and North Africa for $250billion of investment, with more than half of this coming from the six Gulf Cooperation Council (GCC) states alone. However proposals in several GCC states are now being reviewed due to their relatively high initial capital and life cycle cost estimates. Across the globe, railway asset owners and operators are looking at ways to maximise the effectiveness of the returns on their assets. Most operators have considerable unrealised potential in the form of land and building assets that can be released, redeveloped or re-purposed to create additional income. These strategic investment opportunities can reposition stations as a “gateway� to the destination or potentially act as a destination in their own right. Lessons learned from the airport model are increasingly put into practice at stations. Retail, leisure and other commercial facilities generate improved customer satisfaction as well as increasing station income, which in turn has a positive effect on
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overall passenger facilities. As a complete package, this improves the affordability of the railway to government, passengers and overall network operational efficiency. The immediate locality may also see station-led regeneration benefits. Notable examples of this approach include Antwerp Central (Belgium), Berlin Hauptbahnhof (Germany), London St Pancras International and the ongoing development at Birmingham Gateway (UK). These opportunities are not restricted to the larger flagship schemes. In the right location, commuter stations can offer more than a quick coffee and a choice of magazine. Quality retail and dining experiences have proved to be robust and
“ Most operators have considerable unrealised potential in the form of land and building assets…”
sustainable, with station retail sales currently outperforming the high street. In the UK Network Rail, for instance, released station retail sales results for January to March 2011 showing a 5.17 per cent growth in like-for-like sales, compared to the same quarter the previous year. In the same quarter, the British Retail Consortium reported a decline of 0.8 per cent. Smaller stations are also upping their game, with many providing better car parking facilities, bicycle facilities and improved connectivity with other transport modes.
Maintenance, repair and development of stations, however, are predominantly undertaken by the asset holder, with some works undertaken by the operator.
As well as maximising revenue generating potential, operating costs are also high on the industry’s agenda. In the UK the McNulty Report on the Rail Value for Money study outlined changes to reduce industry costs. Operating costs for the UK railway are 40 per cent higher than its counterparts in France, Holland, Sweden and Switzerland. A number of serious cost deficiencies need to be addressed. One of these is the cost of repairs and maintenance to stations, due to the large number of interfaces and the complexity of ownership issues. Currently train operators are responsible for the day to day operation of stations.
Faithful+Gould is already helping clients find ways to optimise expenditure on maintaining their assets, and many of these principles can also benefit the rail industry. We are also supporting clients in formulating sustainable estate strategies to control the total costs of constructing, maintaining and life cycle asset replacement works.
Operators are being urged to significantly reduce their combined operating costs and capital asset investment costs, by efficiently managing the total cost of ownership and maximising the utilisation and value of all their assets. The challenge of maintaining assets to the desired standard, within constrained budgets, underlines the imperative to achieve better value for money.
Our global transport hub experience includes clients and projects such as High Speed 1 and St Pancras International Station, UK, Heathrow Terminal 5, UK, RTA (Dubai Metro), Barajas Airport, Madrid and Penn Station, New York.
For further information contact Graeme Bampton on +44 (0)7834 505789 graeme.bampton@fgould.com or Andy Green on +44 (0)20 7121 2121 andy.green@fgould.com
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Tools for competitive advantage A sustainable built environment focuses not only on operational carbon, but also on the reduction of embodied carbon – the impact of CO2 emissions generated during the manufacture, transport and construction of building materials, together with end of life emissions. This view is supported by UK government chief construction adviser Paul Morrell who suggests that all projects should have whole life carbon assessments. With no fiscal or regulatory driver in place, however, embodied carbon is very much the poor relation of the more prominent operational carbon effort.
Many professional and public sector bodies have now embarked on the next stage of their carbon journey to find a consistent, economically-sustainable approach to whole-life carbon. The reason: you can’t manage what you can’t measure. Existing “free-market” systems for emissions control such as ETS (Emissions Trading Scheme) rely upon detailed measurement and reporting systems that adhere to well-defined standards. Fiscal mechanisms for carbon reduction such as CRC (Carbon Reduction Commitment – a carbon tax), and any future carbon taxation mechanisms, will similarly rely upon an increasingly sophisticated and automated approach. The tipping point at which whole-life carbon becomes the target of fiscal, statutory or market-led reduction is unclear – but it’s likely to be a question of “when” rather than “whether”. So the future holds a significant challenge: how do you quantify and reduce whole-life carbon across a global business in a consistent, comparable way? Standards and methodologies have their place. There needs to be a way to “level the field” – much like modern financial standards, each carbon declaration must be comparable, verified and trusted. But the economic viability of carbon management relies upon having the right tools for the job and managing a sometimes vast quantity of information. In a dynamic environment where standards are constantly evolving, the key is to use information systems in a flexible way. While there are some tools that allow significant coverage of whole-life carbon, none covers everything and it may still be better to choose a range of specialist systems. These systems have to cooperate with one another and take advantage of the continually evolving software and data marketplace, so it’s important to choose an
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fabrication embodied carbon (cradle to gate)
1530% refurbish/ demolish
distribution
3-4%
2-4
%
5-6% information systems architecture that delivers flexibility and interoperability. In some business environments the number of carbon data collection points may be in the thousands, so a sophisticated technology and information infrastructure will be required. Trying to manage carbon in any other way might very well be equivalent to running the finances of a multinational business using paper ledger books and a pen!
assembly on site
50-% 70
Organisations that invest in the right tools and the right information architecture will reap the benefits, but only if the issues of data availability and reliable benchmarks are addressed. Data is often gathered in a proprietary manner, resulting in disparate information sources which do not automatically lend themselves to inter-disciplinary perspectives. Perhaps a different approach is necessary. With the right information systems, protocols for data interchange and industry support, it would be possible to share the information gathered from organisations across the globe in an open and consistent fashion. Organisations could then concentrate on using that information to make better decisions – the real source of competitive advantage. A similar approach can be witnessed in other areas of infrastructure management. The BIM-driven trend towards integrated design, construction and management of assets (see article on page 22) requires a similarly flexible approach underpinned by technology and information. If BIM becomes mandatory on all but the smallest publicly funded
in use
projects, we would expect it to incorporate a whole life carbon element supported by the principles above. Faithful+Gould has been providing sustainability and whole life costing advice for several years. We believe that a standard methodology for measuring, costing and reporting on carbon is essential to the construction industry’s overall carbon reduction strategy. We are active at policy level, working closely with industry bodies as they too pick up the challenge. RICS has commissioned us to lead an embodied carbon task group to address these issues and to author an industry standard. Together with our parent company Atkins, we have developed a comprehensive suite of carbon tools to help organisations make decisions on how to reduce embodied and operational carbon and to influence designs to best achieve this. Our information systems professionals support our subject matter experts in delivering these tools within an appropriately flexible environment and provide guidance on all of the information systems principles above.
For further information contact James Blackwood on +44 (0)141 220 2200 james.d.blackwood@fgould.com
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BIM
A transformation in cost and asset management But BIM is more than a technology, or even a suite of technologies. BIM is a philosophy based upon the principles of integration and collaboration, which advocates an integrated cradle-to-grave approach to asset management underpinned by information and technology. At its heart is the concept of a single model containing all the information required to design, build, operate and dispose of a building (or any aspect of the built environment). BIM accepts that the model might be “virtual” and promotes a loosely coupled approach where technology, information, people, processes and outcomes can be distributed across a number of collaborating parties. How does this differ from the way we presently work? The answer is that information is for the first time truly shared between all parties – everyone operates on one “single source of truth” and can do so simultaneously throughout the life of an asset. Objectives can be achieved earlier, faster, smarter and cheaper.
Most construction industry discussions eventually turn to Building Information Modelling (BIM) in the effort to improve the construction process and ultimately achieve a better building. The BIM revolution has taken time to reach the built environment. For decades, the aerospace, automotive and shipbuilding industries have used an integrated delivery approach combined with modelling software to simulate both assembly and performance. Costly and time-consuming physical prototyping is largely eliminated as the design is optimised in advance for cost, function and constructability.
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Issue thirty
The implications are transformational. Not only can organisations avoid the obvious inefficiency of having to reproduce information between contractual or delivery boundaries, but skills and services can be delivered when and where they are needed. However all stakeholders are involved in a cultural shift. Participating parties must embrace a new approach to managing their information and be prepared to share it with others, potentially exposing more data than previously and using “work in progress” as a basis for early decision making. Technology, information management and standards become imperative – albeit a challenge in the current economic environment and in the early stages of BIM adoption.
An environment of trust is required, so organisations will seek new, close partnerships based upon the requirements of a new BIM paradigm. BIM offers potential for greater cost accuracy, with cost management fully integrated into the building’s lifecycle. The cost consultant is able to advise on the most cost effective design, through true value engineering and improved estimating accuracy for both capital and ongoing FM costs. A close relationship between designer and cost consultant should also deliver valuable cost advice on early design, thus preventing time wasted on pursuing less viable solutions. Improving the flow of information will drive cost certainty and stimulate greater competition. BIM presents an ideal platform for sustainability, carbon and energy management. Too often, one of the primary difficulties in the assessment of carbon and energy is the lack of accurate specification data. Even if a snapshot of these items is taken, assets change over time and sustainability can get overlooked. Linking sustainability to the model and integrating it into the design, construction and operation of an asset is one of the many mechanisms that could help transition to a low carbon economy. Of course BIM presents many more opportunities, from real-time progress tracking and automated scheduling, to a fully integrated facilities management which might incorporate space, move, investment and maintenance management for an entire property portfolio. It’s a quantum leap in asset management that’s waiting to be grasped. The US has been at the forefront of the development of BIM encouraged by the GSA establishing a BIM programme in 2003 and mandating that projects
applying for Federal funding from 2007 onwards must provide a BIM model. Faithful+Gould has been instrumental in the strategic exploitation of BIM in the US market. We led the effort to integrate BIM technology on a variety of projects in multiple sectors and have collaborated with designers to maximise the potential to provide early advice. In partnership with seven organisations under the sponsorship of buildingSMART alliance, we evaluated the benefits of BIM for the US built environment industry. The UK has been less enthusiastic regarding BIM adoption in the first decade of this century with few designers prepared to invest in the technology due, in part, to the fragmented nature of most project teams. However in May this year the government’s chief construction adviser Paul Morrell has stated that BIM will become a key part of government procurement in the near-term with all public building projects required to adopt a BIM platform by 2016. This has led to a sudden increased interest and the number of projects being developed using BIM is increasing, albeit from a low base. Drawing on our earlier experience in the US, Faithful+Gould has been able to contribute to the research commissioned by the Department for Business, Innovation and Skills (BIS) exploring the opportunities for the widespread adoption of BIM. Additionally in the UK, our longstanding relationship with RICS is allowing us to explore further strategic and operational applications.
For further information contact Simon Raine on +44 (0)121 483 5483 simon.raine@fgould.com
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UK and europe Aberdeen Athens Belfast Birmingham Bristol Cambridge Cardiff Colchester Dublin Edinburgh Epsom Exeter Glasgow Leeds London Newcastle upon Tyne Nottingham Oxford Southampton Stockton-on-Tees Stoke-on-Trent Swansea Tunbridge Wells Warrington
MEET ANOTHER ONE OF OUR SUCCESSFUL PROJECTS.
north america
HIS NAME IS WILL. Will joined us after his degree in management at Nottingham University Business School. We sponsored him through a day release MSc in Construction and Economics, concurrent with his work for us. Will is now part of our award winning graduate programme and well on the way to passing his APC. And as a key contributor to our quarterly Construction Inflation Report, he has his finger on the pulse of current market conditions. Faithful+Gould is one of the world’s leading construction project and cost management consultancies, and we’re proud to be an integral part of numerous iconic engineering and construction projects. But some of the projects that we’re most proud of are our staff. We offer excellent opportunities, inspiring excellent people to join us, and we reward them with plenty of scope for growth.
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