Property & Build: October - January 2020/2021

October - January 2020 - 2021

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Touchless future for commercial buildings Transform property into performing assets New benchmarks in building wellness Market grows in strength post-pandemic INFRASTRUCTUREBUILD.COM YEARBOOK 2018

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October - January 2020 - 2021

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roperty values have held firm through the worst of the economic downturn following the strict lockdown policies implemented in March. The combination of low interest rates, access to credit and renewed confidence has seen demand hold firm.

Limited available supply, in the form of a low number of for-sale listings remains a key contributor to the property market’s resilience to lower values. Additionally, the absence of any meaningful lift in unemployment (yet) has minimised the number of urgent listings or strongly motivated vendors willing to discount their price.

The social restrictions placed on Auckland, and to a lesser extent the rest of the country, threatened to put a further dent in upcoming listings, however based on the trend in appraisals generated by real estate agents on CoreLogic platforms, the blip in activity in mid-August was relatively short lived and activity is now back to normal.

Main Centres The lift in values witnessed at a nationwide level is generally also evident across each of the six main centres, with Tauranga the only exception, though the drop of -0.3% in September is very minor and essentially extends the recent trend of sideways movement in Tauranga since COVID hit (+0.3%).

Auckland’s stricter alert level status and subsequent reduction in economic activity provides a stark reminder we’re not completely out of the woods yet with the pandemic, and internationally we’ve seen the impact of subsequent outbreaks on economic conditions.

Property market back on the up Nationwide property values are showing signs of growth once again after stalling since May, observes CoreLogic Head of Research Nick Goodall However property values in Auckland experienced a mini-uptick over the month (0.5%) – the first increase since the COVID-instigated weakness in the market.

The rise in property values appears to be relatively broad based with 1.0% monthly growth in Waitakere (average value $864k) compared to 0.7% in both North Shore ($1.24m) and Franklin ($711k).

Broader Wellington is showing the greatest recent growth rate among our main centres at 1.1% over September, with Porirua in particular experiencing exceptional growth of 2.7% over the month. The one month measure can be relatively volatile here though, perhaps due to having one of the most socially diverse communities and proper-

ty markets, and the three month change of 2.8% probably paints a more representative picture of recent market change. First home buyers and investors remain key players in the property market, while returnees have also shown a liking to Porirua.

Elsewhere, the Dunedin market appears to remain constrained (+0.4% monthly), with values -0.9% down on their recent peak. The annual growth rate of 15.6% helps Dunedin stand out as an area of strength, however this figure needs to be put in the context of the recent peak rate of 21.1%, which helps to illustrate the significant loss of market momentum experienced in the student city.

Meanwhile Hamilton has shown some of the most

consistent growth, leading to an increase of 3.2% over the last three months and a total of 9.7% over the last year – the highest annual rate since the middle of 2017. Investors are once again flexing their purchasing power in Hamilton, likely taking advantage of the temporary removal of the loan-to-value ratio (LVR) restrictions.

Values in Christchurch are also following a relatively consistent upward trajectory, albeit at a slower rate (0.7% quarterly growth), with the annual growth rate reaching its highest point (5.0%) since March 2015.

Meanwhile the Gisborne market has sprung into life, as mortgaged investors return to the fray – some no doubt taking advantage of the temporary removpropertyandbuild.com

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October - January 2020 - 2021 al of loan-to-value ratio restrictions. A 19% annual increase in rents alongside a fairly well insulated economy which is limited in its exposure to the COVID-19 induced recession will also be contributing to the property market resilience.

In Invercargill there are signs that the uncertain

future of the Tiwai Point aluminium smelter may be weighing on values down south. A monthly change of -0.7% making it the only province to see a negative symbol in front of its percentage.

Value growth in Nelson (0.7% quarterly growth) and Napier (0.9%) appears

to have waned a bit, but Rotorua (5.2%), Palmerston North (4.4%) and even New Plymouth (3.4%) have seen values go from strength to strength.

Outlook Recently in their Monetary Policy Review, the Reserve Bank of NZ reiter-

Rolling change in national property values

House Price Index, main centres relative to December 2003

ated their commitment to keeping interest rates low and ensuring credit and confidence remain in the market. Economic forecasts remain tilted toward the downside, as unemployment is set to increase, now that the wage subsidy has ended and the mortgage deferral programme is being proactively worked out of the books.

The latest NZ Activity Index, produced by a number of government agencies, including Stats NZ and Treasury, gives us an earlier read on how the economy is performing and the figure for August was 1.4% down on the same month last year. Not necessarily a surprise given the social restrictions in place for most of the month, but a figure of caution as we look to the future.

And it’s a future of persistent uncertainty. International travel and therefore inbound holiday-makers, as well as foreign migrants, is a long way off, while exporters will also be feeling the impacts of the pandemic worldwide.

The perceived safety of property, and availability of cheap money, appears to be protecting the property market from falling though.

And so does the lack of stressed sales.

All eyes remain on the labour market and unemployment data to see if that starts to change.

Nick Goodall

Head of Research, CoreLogic 4

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October - January 2020 - 2021

Hard work gets results

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he team was forged by three friends working in the industry who realised that the key thing stressed building managers, business owners and landlords needed was to make a single call and get a reliable and qualified support team that would cover any aspect of facilities management.

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October - January 2020 - 2021

Content Partners 3

Property market back on the up

10 Over 270,000 Kiwis think they will lose their job 14 Touchless security upgrade shows way of the future 17 Commercial real estate investment and asset management 22 New benchmarks in the global drive for well communities 24 Construction Sector Accord tackles industry challenges 26 Who gets what from the $2.6b shovel-ready fund

Barry Dyer Chief Executive Responsible Care New Zealand

35 Never make counteroffers when employees resign 36 Simple ways to protect against cyberattacks

41 Please, no more regulations!

59 How to operate in a post-RMA environment

43 Cancer-causing dust released by earthworks

62 Not a drop to spare - how Auckland's water crisis could have been prevented

44 Fatigue management 46 Managing remote workers

63 The digital revolution taking place in the water sector

50 Illegal pay cut warning 51 Evolving guidelines for heavy vehicle road managers 54 ACC steps up to subsidise construction sector training

Nick Goodall Head of Research CoreLogic

67 A hint at rewards for COVID-19 diligence 70 Why $55b is not enough for transport Hamish Glenn Policy Director Infrastructure New Zealand

Published by Media Solutions Ltd PO Box 503, Whangaparaoa Auckland 0943 09 428 7456 Original material published online and in this magazine is copyright,

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but may be reproduced providing permission is obtained from the editor

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and acknowledgement given to Media Solutions. Opinions expressed are those of the authors and may not necessarily be those of Media Solutions Ltd. Publisher ISSN 2624-0572 (Print) ISSN 2624-0580 (Online) 6 propertyandbuild.com

Administration Manager

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October - January 2020 - 2021

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October - January 2020 - 2021

How Komatsu NZ solved loader scale accuracy issues – and now leads the industry Sponsored Article

Komatsu wheel loaders fitted with third party scales are now consistently achieving levels of accuracy significantly better than other loader brands

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ue to regulations covering on-road trucks, sites that do not have a certified weighbridge, should have their wheel loaders equipped with “legal for trade” load scales.

They require annual calibration to maintain their certification and generally are required to achieve load accuracies of one percent or better.

Thanks to an ongoing program of research, testing and many hours of trials over the past four years with customers and suppliers, Komatsu loaders have

gone from a situation of inconsistent readings and a 2-3 percent accuracy rate to the point that now they are consistently 0.5% accurate or better.

“We’ve had this solution since the start of 2019, and it’s proven itself since that time. We’re now highly confident in our ability to supply loaders that consistently deliver load scale accuracies that significantly exceed industry requirements.”

“The success overcomes a long standing issue where 3rd party scales fitted to Komatsu loaders were un-

Co-operative efforts Komatsu acknowledges the assistance provided by load scale suppliers Loadrite and RDS. “Loadrite has the larger market share in NZ, while I believe RDS is more prevalent in Australia,” Brent says.

“We were having these issues with both brands, and both companies were very helpful in assisting us to resolve them.

He also acknowledged the assistance of AB Lime, which has operations throughout the South Island, in giving access to sites and the company’s patience in trialling different potential solutions.

“Thanks to our Komatsu NZ team, along with engineering support from Komatsu Australia and Japan, plus the input from load scale suppliers and customers, we have solved this issue,” says Brent.

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able to deliver accurate and consistent readings,” says Brent Hepple, Komatsu NZ’s Product Support Manager, who led the project.

Inaccurate or inconsistent load scale results are of particular concern in operations where there is no weighbridge, so the weight of material in each bucketload must be spot on.

“This issue was particularly prevalent in the South Island and because this industry is such a strong word-of-mouth one, we were getting a very poor reputation.”

“If your operation is relying on a loader fitted with scales to ensure your trucks are not overloaded, then each bucketload weight is critical,” he says.

“We have customers who want their trucks loaded to exactly 30 tonnes, to optimise their haulage operations. But if their trucks are even slightly overloaded, they’ll get a ticket.”

Another important customer sector reliant on highly accurate scale results is the lime fertiliser industry.

“Lime blends have to have very precise mixes to meet their customer specifications. If there’s too much of a lower quality mix, cus-

tomers aren’t getting what they’ve paid for; if there’s too much of the premium product, the producers are losing money.”

Brent, along with Ron Chilton, Komatsu NZ’s technical support representative for the South Island, spent a lot of time working with customers to try to solve these issues, and also to figure out why they seemed to be unique to Komatsu loaders, and didn’t as a rule happen with other brands.

Brent and Ron – who Brent credits as having done the bulk of the work with customers and suppliers – also worked closely with the two leading load scale suppliers in NZ, Loadrite and RDS. As it turned out, there were two causes, which interacted with each other to produce the inaccurate and inconsistent results.

“Fairly early on, we identified that friction in the loader bucket bushing was part of the issue,” says Brent.

“Over a number of years, we tried a number of different low-friction bushings.

They gave us some encouraging results, but they still weren’t giving us the accuracy we needed.

“Then we stumbled on something in a Komatsu

October - January 2020 - 2021

excavator parts book that referred to a BMRC bush, which is a special sintered aluminium/copper bush fitted to some models of Komatsu excavators so they could raise greasing intervals to more than 500 hours.

“We tried some of these, and found the accuracy was significantly improved.

“Loader scales work on hydraulic pressure to calculate load weights, and the slightest increase in friction in the bushings meant more pressure in the hydraulic system, which in turn meant the scales gave an incorrect reading.”

Brent and his team brought in some sets of BMRC bushes from Komatsu Japan, and trialled them on some loaders in a couple of operations.

“It was a huge improvement, but we were still getting erratic results with some machines, some were 2-3 percent out, though others were OK.” So Brent and the team did

some more research.

“We started looking at the Closed-Loop Load Sensing or CLLS hydraulic system that’s been used on just about all Komatsu construction machines since the late 1990s.”

It’s pretty much unique to Komatsu, and something no other manufacturers use, certainly not on loaders; most hydraulics on other earthmoving brands are open-centre systems.

“Our CLLS system gives us significant advantages in precision and control, it’s faster, and more reliable and robust, plus it also contributes to Komatsu machines’ reputation for excellent fuel efficiency,” says Brent.

“So we started adjusting the loader hydraulic circuits on these loaders that we’d fitted with the new bushes, using data logging to measure and calibrate the hydraulic systems’ wave pattern, which what is used by the load scales to calculate bucketload weights.

“We found we were able to adjust our Komatsu CLLS hydraulic systems to get the wave patterns in precisely the right spot.

“By doing this, we were able to get to accuracies of 0.5% consistently with Komatsu loaders – which is even better than the scale manufacturers can guarantee,” he says.

“So the solution turned out to be the combination of these ultra-low-friction bushes and the calibration of our hydraulic systems.

“Our hydraulic systems do need regular calibration and checking to maintain accuracy, but that’s a requirement anyway for any machine used for sales loading work,” says Brent.

“This program has also answered the question of why this issue was primarily affecting Komatsu loaders. Open-centre hydraulics-based machines tend to be slower in the loading cycle, with big cylinders and large pumps, but they have traditionally been

more accurate.

“But we are now finding as a result of our research that Komatsu machines as they get older actually get even more accurate in measuring bucketload weights, as things wear a bit and there’s a touch less friction,” he says.

As a result of this program, all Komatsu loaders sold in New Zealand and Australia are now fitted with BMRC ultra-low-friction bushes as a standard fitment.

“We also think that Komatsu will be very well positioned into the future, as after market load scales are getting more and more accurate, with increased levels of sensitivity,” says Brent.

“Now that we know exactly how to set up and calibrate our loaders to get the best possible results, we believe we have a significant advantage over other suppliers.” komatsu.co.nz propertyandbuild.com

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October - January 2020 - 2021

Over 287,000 Kiwis think they will lose their jobs Around seven percent of adults are worried about job security in the coming year according to Horizon Research’s latest Employment Forecast Monitor Estimated number of adults expected to keep/lose their jobs

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he good news is that the number of New Zealanders who are confident they will keep their jobs during the next 12 months has risen by eight percent to 46 percent of adults who believed (at the end of August) they would keep their jobs the next year.

In its 2020 budget the Government cited Treasury forecasts which said unemployment could rise to 8.3 percent in the year to June 2020, with 297,000 people on the jobseeker benefit.

It was then projected to fall to 6.3 percent in 2021, with 246,000 on jobseeker benefits, and back to 4.2 percent in 2022, with 202,000 people claiming jobseeker benefits.

Horizon Research’s alladults Monitor includes 10

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those who do not qualify for the jobseeker benefit and finds 11 percent are currently unemployed (an estimated 384,700 adults) and not retired or unable to work.

0f these people, 312,800 believe that it will be hard to find a job.

Other Key Findings Part time workers (currently employed for less than 30 hours per week) were less optimistic than full-timer workers (currently employed for 30 hours per week or more), and more expected to lose their jobs.

79 percent of full-time workers expected to keep their current job (an estimated 1,158,700 employees) and 9% to lose their current job (an estimated 134,400 employees).

54 percent of part-time

workers expected to keep their current job (an estimated 480,700 employees) and 17 percent expected to lose theirs (an estimated 153,200 employees).

Sectors most involved Horizon says the latest Monitor indicates there is rising confidence among those currently employed that jobs will be kept and changed with less difficulty.

Those in specialist trades (like plumbers, builders, and electricians) and in business and property services are 100 percent confident of keeping their jobs in the next 12 months.

Results for the following sub-groups of occupations are indicative only because of smaller sample sizes.

Indications are that the least confident are those

in the accommodation sector, where 11 percent only expect to keep their jobs, sport and exercise (15 percent) and cultural and recreational services (40 percent).

In tourism, previously New Zealand’s biggest export earner but now with no international visitor custom, 55 percent of those still employed in the sector expect to keep their jobs in the next 12 months.

In retail, another sector affected directly by lockdowns, 55 percent also expect to keep their jobs.

While 61 percent working in hospitality (bars, night clubs and entertainment) think they will keep their jobs, 39 percent think they will lose them and it will be hard to find another, the largest percentage for expected job loss for any of the 24 main sectors measured.

Overall, the survey is weighted by age, gender, personal income, highest education level, employment status and party vote at the 2017 election to ensure it represents the New Zealand adult population at the last census and general election. At a 95% confidence level, the maximum margin of error is ± 2.7%.

October - January 2020 - 2021

AC Filter - an engineered solution protecting worker health

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he AC Filter cabin overpressure and filtration story began more than 30 years ago in The Netherlands and it has proven its durability and value.

Fillflex manufactures, supplies and maintains AC Filter systems for any cab, on equipment of any type and size.

“Our technology has often been copied, but there is only one genuine ACFilter product range,” says Fillflex

New Zealand managing director Bill Hackshaw.

“The system optimises your equipment’s in-cab operating environment to protect both the health of the operator, and the existing heating, cooling and electronic systems in place.

AC Filter complies with standards CROW132 and NEN4444.”

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October - January 2020 - 2021

Benchmarking pay trends in our industrial and commercial sectors

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Pay is a key element in any role or hiring decision, but gauging remuneration within specific industries and locations is not always straightforward

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ay rates are intertwined with various factors including region, age, tenure, qualifications and the size of the team, yet these variables do not automatically denote higher or lower pay across the board.

OneStaff’s comprehensive What’s My Rate?

New Zealand Industrial and Trades Wage Report 2020 (produced prior to COVID-19) analysed key trends in Construction & Infrastructure, Engineering, Manufacturing, Production & Logistics, Trades & Services and Commercial & Hospitality. The report surveyed over 7,800 participants from these core industrial and commercial sectors across the country, and revealed that: • There is very little difference in the median hourly pay for people of different generations.

• Pay tends to rise with tenure, though it plateaus after 6-10 years.

• High-level tertiary education does not necessarily equate to higher pay.

• Managing a large team is not grounds for earning more, and there is no clear trend correlating the size of the team and higher pay.

• Living in a larger, more prosperous region of New Zealand does not guarantee more pay, with Northland and Otago sharing the top 12

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median rate in the country alongside Auckland and Canterbury.

• There is still a gender pay gap in many industries, with women earning, on average, 17% less than their male counterparts.

The Impact of COVID-19 on Pay Rates COVID-19 brings a new dimension to remuneration trends in New Zealand, and as the economy shifts, it’s likely that pay rates and the correlations between them have changed as a result.

Economic conditions have temporarily impacted rates of pay and hours in businesses across the country, often alongside wage subsidy schemes. There are also likely to be chang-

es tied to restrictions on immigration that will make certain skill sets harder to find, potentially driving pay rates within these roles for the foreseeable future.

As the situation continues to evolve, it will be interesting to see how this has affected not just wage rates but the motivations of workers and sectors that have been disrupted by the economic developments.

Benchmarking Pay Rates OneStaff has created a free online tool that allows employers and workers alike to benchmark pay rates against others in their industry and region by filling out a simple survey.

Results are based on multiple factors affecting pay

rates in each location for each role type.

At the end of the survey, participants get immediate, personalised insights into hourly pay rates that they can use to inform career and business decisions.

They will also receive a free copy of OneStaff’s full What’s My Rate? report for 2021 when it is released, providing additional information around year-on-year trends based on real data from real New Zealanders. Both employees and employers working in these sectors will find a raft of valuable insights in this industry-leading report, empowering them to effectively develop their careers and implement strategic changes within their workplaces.

October - January 2020 - 2021

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October - January 2020 - 2021

Touchless security upgrade showcases the way of the future for commercial buildings The Gateway building in Sydney’s Circular Quay is Australia’s first office tower to use fully integrated touchless fingerprint scanning to allow authorised office workers and guests into the building

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he solution had to work seamlessly to enhance the user experience and building security for tenants and visitors at the 46-storey landmark building in Sydney’s CBD, owned by Dexus Wholesale Property Fund.

“Tenants have a duty of care to protect their employees and visitors as well as valuable data and intellectual property, and they need the cooperation and support of a responsible and innovative building manager to manage secure entry into the building,” says Boon Edam Australia Managing Director Michael Fisher.

Boon Edam delivered the entrance security solution, with speedgates that are the slimmest in the market, which added to the aesthetics, and helped with design considerations within the width of the lift lobbies.

“We have tenants in Gateway who requested ground floor security, so we went out to tender to seek the best combination of sophisticated security and elegance, without being obtrusive to the building’s users,” says Dexus’ Senior Project Manager Stephen Hodge.

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The new entrance involves a complex integration of security and technology experts, including Boon Edam, Schindler Lifts, Honeywell and IDEMIA (the manufacturers of MorphoWave fingerprint scanning technology).

Gateway’s access solution begins with a sign-in system for guests, while authorised tenants will have their unique finger pattern saved. The guest pass, or your finger ID pattern, is then used on a MorphoWave fingerprint, which grants access to authorised personnel.

MorphoWave scans and verifies four fingerprints through a simple hand wave gesture, during which the sensor takes several 3D photos of the fingerprints to extract biometric data and compare with the authorised fingerprints stored in the device. If they match, the user is granted access.

This process all happens in less than one second.

Each Morphowave scanner is connected to Schindler’s PORT Technology, which then receives the user’s credential data and is cross-checked in the base building access control database. If the user is valid,

October - January 2020 - 2021 a command is sent to the Boon Edam Lifeline Speedlane to open. This interaction is surprising quick with limited latency.

A major part of the solution involves lift destination control, whereby a user’s credentials automatically assign a lift as they are verified and allowed access through the speedgate.

This seamless integration was assisted by an existing global partnership between Boon Edam and Schindler Lifts.

The partnership enables Schindler’s PORT 4 mini technology to be embedded into the speedgates at the manufacturing stage in the Boon Edam factory.

The design also incorporates a high-level interface between Schindler’s PORT Technology and Boon Edam speedstile to control the speedgates.

Using an advanced algorithm and the integrated Schindler PORT 4 mini lift destination control for visual and audio feedback, a lift is automatically assigned at the same time the gate is opening, for optimum efficiency. The security is controlled by Honeywell’s access control system, integrated with Schindler’s PORT Technology.

Honeywell has been managing the security and building management systems for the Gateway building since it was first opened in 1990.

Honeywell Asia-Pacific Solution Architect Leader Rhys Crabb says early engagement at all stages and a commitment to a collaborative approach enabled Dexus to select the best available technologies.

“With so many stakeholders, and a strong need for reliability and quality, it was important that everyone knew the goals of the

project and worked well together. I’m pleased to say that it was like a perfect jigsaw and everything came together smoothly,” say Dexus’ Hodge “What was important to Dexus is that we were pushing the boundaries to create better experiences, but we’re only doing so with proven products. Boon Edam’s speedgates have been installed globally and locally, and this gave us added confidence that they were the right product for this forward-looking project,” he says.

“Another significant help with this project was that the companies involved built a prototype, located at Schindler’s Head Office based in Sydney, so that the Dexus management and technical teams could test the solution well in advance of implementing it at Gateway.”

Fingerprint scanners were chosen to control access to secured floors and areas of the building, because it provided an extra level of privacy that was attractive to tenants.

“A computer algorithm converts each person’s unique fingerprint signature into binary code – zeroes and ones – and uses that code to grant access,” explains Hodge.

“Boon Edam speedgates have the ability to integrate facial recognition, which could be highly valuable in other projects, but the fingerprint scanners were the right fit for this building.

Boon Edam made it simple to integrate them with their speedgates, which helped us meet project deadlines,” he says.

Dexus Facility Manager, Gateway, Bill Garrett, says one of the major benefits of the new entry system is that there’s a dedicated underground entrance for tradespeople, couriers and deliveries, which removes congestion and bulky trolleys from the main lobby.

“It’s all about enhancing the user experience, and Gateway will set a new benchmark for a seamless, secure and aesthetically pleasing entry,” he says.

Garrett explains that to get tenants used to a totally new system, they adopted a staged approach. “At first, the speedgates were there, but left in the open position, then some gates were closed, so that tenants could trial entering using the new technology if they wished, in advance of the entire system being fully implemented.

“In addition to this staged approach, we met with key tenants and allowed them to trial the system in advance. The testing, combined with the staged approach, allowed for a smooth transition to the new security technology,” says Garrett.

Royal Boon Edam produces a range of revolving doors, security doors & portals, speed gates, tripod turnstiles, access gates and full height turnstiles. darren.assey@boonedam.com www.boonedam.com.au propertyandbuild.com

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October - January 2020 - 2021

Which NZ company has products that work hard from the foundations to the roof?

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EXPOL have been delivering solid insulation and lightweight polystyrene construction solutions to the New Zealand building industry for over 40 years

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rom the foundations right up to the roof, EXPOL has the right solution for every part of your project.

Our solutions work from the ground up and include GeoFoam, Tuff Pod, XPS, StyroDrain, Quickdrain, ThermaSlab, Platnium Board, Emperor Panel, UnderFloor and Garage Door Insulation.

Closed Loop Recycling A care and responsibility for the environment has led EXPOL to the development of a closed loop full circle recycling process. Nationwide EXPOL has recycling units in each of its 7 manufacturing facilities.

Product development teams are constantly working on developing new products which use recycled polystyrene. Recent products that have entered the marketplace are QuickDrain the no scoria drainage solution and StyroDrain which is made up of 100% recycled polystyrene and used to protect the waterproofing membrane on retaining walls whilst acting as a medium to improve drainage.

For residential or household polystyrene recycling EXPOL has introduced the EXPOL Polystyrene Residential Recycling Cube initiative where consumers can drop off their residential polystyrene waste in selected hardware stores

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nationwide.

EXPOL also run a recycling programme for building or commercial polystyrene waste. All it takes is a call to 0800 86 33 73 to discuss how they can help – easy done!

Pimp my Ute Purchase your EXPOL products from ITM from 1 October - 30 November 2020 and you can go in the draw to win 1 of 2 $5000 EXPOL Pimp My Ute vouchers from Hyperdrive.

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October - January 2020 - 2021

Commercial T real estate investment and asset management A new study by CBRE Asia Director, Digital Solutions Nik Sudhakar and Senior Director, Research, CBRE Asia Pacific Jonathan Hills examines the tools and techniques available for planning, repositioning and future proofing property investments

his Special Report

by CBRE Research presents the case for adopting a holistic approach to integrating a range of tools and techniques into real estate investing and asset management., The report says that along with traditional investment strategies and due diligence, investors and developers are increasingly incorporating a broad range of tools and techniques into their assessments -- particularly in the fields of workplace design, flex strategy, tenant engagement and sustainability.

However, adoption to date has generally been siloed and uncoordinated, meaning that investors and developers have been unable to accrue the full

benefits of pursuing a more cohesive and comprehensive approach.

Although some investors and developers have adopted various approaches to addressing these situations, most have not embraced a holistic approach or considered how these instruments can be applied in tandem with other areas of commercial property expertise, the report says.

Agile real estate With occupiers’ corporate real estate strategy now focusing on achieving greater lease flexibility; companies looking to maintain a contented and productive workforce; and employees striving for an attractive and appealing workplace experience, a fundamentally different approach is required.

Although some landlords are experimenting with a range of new strategies to differentiate their properties beyond the traditional selling points of specification, location and accessibility, many are still struggling to devise an effective response, the report reveals.

This phenomenon requires landlords to adopt more intensive asset management strategies as they transition away from being pure space providers. By adopting a more proactive approach and taking on a more service-oriented role, landlords can improve tenant retention.

Rather than simply filling up a building with tenants on conventional long-term leases, landlords striving to achieve a competitive advantage can create a blended, ‘agile’, offering including traditional space, flexible space and turnkey solutions, all supported by a comprehensive set of amenities, leading edge techpropertyandbuild.com

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A few progressive landlords are now offering

O ctober - J anuary and amenities such as concierge, hotel-like services 2020 - 2021 Figure 1:

The Agile Asset of the Future Conventional floors with long term leases

Space as a service

Concierge / Bike Storage / Gym and Leisure Facilities

engagement platforms to create an attractive workplace experience for building users.

Roof Terrace / Event Space / Bar / Restaurant

Fitted / Spec Suites

Shared Food Hall / Conference Auditorium

Activated Community Areas / Event Spaces

Source: CBRE Research, October 2019

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nology and personalised - component of new office from competitors by provid- responsible for creating a human delivered services. developments when they ing amenities andexperience services supportive and stationed comfortable Mobile applications such as Host, which can be knowledgeable professionals The obvious starting point look to provide tenants with that will attract and retain atmosphere; welcoming tailored to specific tenant requirements, allow users on site who are responsible for creating a supportive is for landlords to create a their desired “core + flex” tenants, raise occupancy visitors; and acting as air to navigate the workplace, schedule meetings and comfortable atmosphere; welcoming visitors; blended space offering at solution. and boost rents, can utilise traffic control for all emwith colleagues, reserve workspaces, use food and acting as air traffic control forfacing all employee the building and portfolio The coming years are tenant engagement platployee services, the and beverage services, andalso access and op- forms facingtoservices. level.

While securing flexible likelybuilding to see greater create an attractive authors assert.

2 space operators as tenants tionality in lease contracts workplace experience for Landlords and investors concierge services. is the most direct approach, – a trend already gaining building users. looking createagile agile asLandlords and investors looking to to create landlords wishing to exert traction in recent months Mobile applications such sets are advised to assets are advised to engage consultants to engage While much of the conversation around tenant greater control over their as occupiers reconsider as “Host”, which can be consultants to conduct flex conduct flex strategy planning for buildings, such engagement platforms invariably focuses on their end user profile, services headcount requirements, tailored to specific tenant strategy planning for buildas determining theusers best third-party flex technological sophistication and efficiency, many and experience can creaccording to the report. requirements, allow ings, such as operator determining or navigate possiblythe running a tenderthe process.

Consultants platforms overlook the importance of genuine ate and operate their own to workplace, best third-party flex opcan also meetings conduct with specific reviews of possibly an investor’s humanspace interaction, particularly regarding service flexible platforms – Support services schedule erator or running a effectively an on demand When creating agile colleagues, tender process. portfolio toreserve adviseworkon best practices to maintain delivery. For tenant engagement platforms to be ‘space as a service’ - as an utilise properties, landlords use food and bevConsultants can also performance. truly effective, they must well trained andshould spaces, amenity and component of also include a broad range erage services, and access conduct specific reviews their overall portfolio. of amenities and supportbuilding and concierge of an investor’s portfolio to CBRE researchers talked ing services. In addition services. advise on best practices to to a number of leading to basics such as parking While much of the conmaintain performance.

Tenant Engagement Platforms: Digitising the Workplace Experience, CBRE Research, June 2018 landlords in major Asia space and F&B, occupiers versation around tenant Pacific markets prior to are increasingly demanding engagement platforms Workplace strategy © 2020 CBRE, INC. the onset of the COVID-19 conference and meeting focuses on their technoAlthough workplace pandemic and the majorroom services, personal logical sophistication and strategy has traditionally ity expect most buildings fitness spaces, and other efficiency, many platforms been implemented at the in their portfolios to have wellness facilities. overlook the importance occupier level, there exist a some kind of flexible office A few progressive landof genuine human interacrange of services that are component in the future – a lords are now offering hotion, particularly regarding of relevance to landlords structural change that is tel-like services and ameservice delivery. and investors in speciflikely to accelerate in the nities such as concierge For tenant engagement ic situations, particularly coming years. services, dedicated tenant platforms to be truly effecaround how to enhance the Progressive landlords lounges and bars and ontive, they must utilise well workplace experience and therefore intend to position site wellness programmes. trained and knowledgeable developing and maintainflexible space as a core – Agile properties seeking experience professionals ing a community for their but optimally proportioned to distinguish themselves stationed on site who are tenants.

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October - January 2020 - 2021

Workplace consultants can be commissioned to engage with prospective tenants to understand how they can be efficiently accommodated in a property and the amenities, services, and layouts that address their needs. Advisors can also assess the potential for creating a high-performance workplace and help occupiers make informed strategies about how to make core+flex work for them.

For example, a landlord of an ageing office building can engage workplace specialists to assess the viability of a repositioning exercise by evaluating current strengths and deficiencies and making recommendations for design and service improvements.

This may include the assessment and development of sample floor layouts for a broad mix of tenants, ranging from more traditional occupancy to higher collaboration seat ratios for more agile working tenants.

Space planning and design recommendations can

then be implemented into tenant spaces and used in marketing collateral, helping property owners attract their desired tenants. Similar approaches can be used to engage with and improve workplaces for tenants in an existing building.

For owners with large property portfolios, workplace teams can develop and design operations guidelines to be used with local design partners in the planning and designing of a typical building, in areas such as the provision of spec suites, amenities and services.

CBRE researchers say that no matter whether it is a new or existing property, workplace teams have a role to play in supporting the marketing and delivery of workplace changes back to tenants – communicating the reasons behind what’s new or different in order to improve engagement.

Advisors can also run “as if we were the tenant” scenarios to provide tenants with ideas of potential options and what they

would need to do to make a renewal option more suitable than the relocation option that they might be considering.

Landlords can offer workplace strategy services integrated into a renewal – including change management support – as a way to help tenants stay and reinvent their workplaces in their existing space.

Digital solutions There exist a range of digital technologies that are helping transform the way in which commercial properties are being planned, marketed and leased.

At the project planning stage, geographic information systems such as “Dimension” can leverage a wealth of proprietary real estate data across all asset classes, market knowledge and understanding of client requirements, and use this information to create maps helping users visualise the impact of decisions around site selection.

Practical examples include identifying prime lo-

cations for new distribution warehouses by ascertaining distances to key infrastructure; planning routes to minimise distance, time and cost; and calculating the number of trucks required to deliver and unload goods to end-users.

The same platforms can also add value for property owners seeking to create narratives around specific assets and opportunities.

For example, a landlord wishing to fill a vacant space in an existing shopping mall could create maps based on the number of residents and office workers in the vicinity of the property, combine this with income and spending data and then use this information as a marketing tool to approach suitable retailers whose offering caters to the appropriate demographic.

Should a landlord wish to sell a property, it could use data from the same platforms to create marketing collateral highlighting the qualities of a particular asset, such as its connectivity to mass transit networks or proximity to high-income residential areas.

Other applications that can be used at the project planning stage include cutting-edge consumer analytics tools such as “Calibrate”. These tools can harness and analyse mass mobile data, giving investors and landlords insight into where their potential customers come from and where they go.

For developers looking to enter new areas of a city, data can be used to form a picture of common locations during different times of the day, which can aid in identifying suitable locations for new developments.4 The same information can be used by a landlord of an propertyandbuild.com

19

October - January 2020 - 2021 existing mall to understand how its property is impacted by a new development and the steps it must take to retain customers.

This would be especially useful for a landlord of a struggling mall seeking to diagnose the causes of underperformance in its property; considering a repositioning exercise; and/ or wanting to identify and respond to competitors that are affecting sales, the CBRE report says.

There are several other technological tools that can help landlords and investors create compelling branding and storytelling around specific properties at the marketing and leasing stage, including: Commute optimiser platforms can create inter-

active maps that let potential tenants select various locations and instantly see the average commute time, distance, and costs for their workforce to reach each site – providing landlords with compelling evidence to use when presenting the case for their property.

Test fitout tools such as “Plans” and “Plans Pro” have digitised the previously time consuming and labour-intensive process of creating office test-fits.

This can help landlords assist tenants in better understanding what their potential new space looks and feels like in interactive 3D and how their staff and workstations will fit into it.

Virtual tour software can help landlords assist potential tenants explore

properties from every angle and visualise spaces that do not yet exist or are being repositioned for specific needs.

Software such as “Build 3D”enables developers and architects to build virtual 3D models that turns sketches, photos, floor plans and Computer Aided Design (CAD) plans into bespoke 3D environments that can be delivered to prospective tenants and then explored via a website.

Lease administration systems enable owners to have full visibility of their portfolios, maximising income generation and reducing expenses, driving maximum occupancy whilst simultaneously providing risk mitigation and governance.

CBRE advises landlords

and investors “to carefully evaluate the different technological tools available on the market to ensure their asset stays ahead of the competition.”

They may also consider reviewing existing portfolios to determine ways to improve building performance through introducing new technologies, e.g. by installing smart gates (see related article in this issue) The COVID-19 pandemic has placed the onus on landlords to quickly install new technologies to enhance the health and safety of building occupants.

These include temperature scanners in lobbies, touchless access in entry/ exit points and elevators and UV handrail sterilisers, to name just a few.

CBRE believes these technologies are crucial to providing reassurance to tenants as their employees gradually and safely re-enter the workplace and advises owner-occupiers to implement these solutions in the immediate term.

Sustainabilty With buildings and construction together accounting for 36 percent of global final energy use and 39 percent of energy-related carbon dioxide (CO2) emissions (when upstream power generation is included), they are a major contributor to global warming and climate change.

While many companies have focused much of their effort on reducing energy usage and associated emissions, such as through the development and leasing of green buildings, the coming years may see several markets introduce legislation requiring companies to make significant and measurable steps to reduce their carbon footprint.

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ustomer s

Portfolio Servic Improve lease and that provide more

7

13

REPOSITIONING ( AG I N G A S S E T / U N D E R P E R F O R M I N G )

FUTURE PL ANNING (E XISTING ASSET / WELL PERFOR MING)

DIMENSION, COMMUTE OPTIMIZER & CALIBRATE

PERSPECTIVES HOST

NEW ASSET PLANNING (WORKPLACE STRATEGY)

HOST

NEW ASSET PLANNING (WORKPLACE STRATEGY)

AGILE

TENANT VALUE ADD (WORKPLACE STRATEGY)

AGILE

TENANT VALUE ADD (WORKPLACE STRATEGY)

DIGITAL ADVISORY

ASSET OF THE FUTURE ADVISORY

DIGITAL ADVISORY

ASSET OF THE FUTURE ADVISORY

PORTFOLIO SERVICES

SUSTAINABILITY CONSULTING

PORTFOLIO SERVICES

DIGITAL ADVISORY

C B R E R E S E AR C H | AS I A PAC I F I CInteractive

NEW ASSET PLANNING (WORKPLACE STRATEGY)

PLANS + PLANS PRO

C B R E RESEA RC H | A SIA PAC IFIC

DIMENSION, COMMUTE OPTIMIZER & CALIBRATE Plans + Plans Pro test-fits and virtualDtours EFINITIONS

5

9

Perspectives Collaborative digital interface that focuses on the customer experience and the elevation of marketing materials

COST

PERSPECTIVES

3

11

Agile Flex strategy planning for a building, including determining the best agile operator and asset mix

Asset of the Future Advisory Tech / Agile / Tenant Experience (specific revie portfolio and determine bespoke solutions to i Digital Advisor Portfolio Services Unbiased opinion Improve lease and tenancy management the market throu that provide more insights on expiries and mark Asset of the Fut Tech / Agile / Ten portfolio and dete Host Creating a better experience for tenants through a mobile platform and elevated concierge and hospitality services Dimension, Commute Optimizer & Calibrate Agile Perspectives Demographic, catchment areas, where people are coming from/ Flex strategy planning for a building, including determining Collaborative digital interfaceBuild that focuses on the customer going, based on mapping toolsthe and mobile data 3D agilelike operator and asset mix experience and the elevation 3D of marketing renders ofmaterials what the asset/development best will look Host Creating a better experience for tenants through a mobile platform Plans + Plans Pro and elevated concierge and hospitality services C B R E R E S E AR C H | AS I A PAC I F I CInteractive test-fits and virtual tours

Impr servi

PORTFOLIO Digital Advisory Portfolio Services Sust Unbiased opinion of what proptech solutions ar SERVICES Improve lease and tenancy management Impr the market through data solutions that provide more insights on expiries and market benchmarks ener

Tech / Agile / Tenant Experience (specific review of investor’s asset/ portfolio and determine bespoke solutions to improve performance)

Dimension, Commute Optimizer & Calibrate Agile Perspectives CONCERNS Demographic, catchment areas, where people are coming from/ Flex strategy planning for a building, including determining Collaborative digital interfaceBuild that focuses on the customer going, based on mapping toolsthe and mobile data 3D agilelike operator and asset mix experience and the elevation 3D of marketing renders ofmaterials what the asset/development best will look

AGILE

Host Creating a better experience for tenants through a mobile platform and elevated concierge and hospitality services

AGILE

Plans + Plans Pro Interactive test-fits and virtualDtours EFINITIONS

going, based on mapping tools and mobile data

AGILE

HOST

October - January 2020 - 2021

INVESTMENT AND ASSET MANAGEMENT

NE W DE VELOPMENT PLANNING

Build 3D 3D renders of what the asset/development will look like

like

PLANS + PLANS PRO

It has been estimated This could also impact address these and other ing energy audits (level I & Dimension, Commute Optimizer & Calibrate Digital Advisory New Asset Planning (Workplace Strategy) Demographic, catchment areas, where per people are coming the from/ capital value ofUnbiased opinion of whatsustainability proptech solutions are available in Ensuring the assetII) is capturing the needs of tenants (providing that energy intensity such issues by inteusing ASHRAE and other going, based on mapping tools and mobile data the market insights on what tenants want in a building) sqm of the global buildings properties. grating sustainability pracnational standards; achievHost Asset of the Future Advisory Tenant Value Add (Workplace Strategy) Creating a better experience for tenants through a mobile platform Tech / Agile / Tenant Experience (specific review of investor’s asset/ Improving the workplace for existing tenants in portfolio (additional sector needs to improve on The environmental tices throughout all stages ing Global Real Estate and elevated concierge and hospitality services portfolio and determine bespoke solutions to improve performance) service landlords can provide to retain tenants) average by 30 percent by impact of new building of the property life cycle.

Sustainability Benchmark Agile Portfolio Services Sustainability Consulting Flex strategy planning for a building, including determining the Improve lease and tenancy management through data solutions Improve asset performance and achieve cost savings through best agile operator and asset mix that provide more insights on From expiries andacquisition market benchmarks and energy management systems and environmental accreditations in2030 (compared to 2015) construction may also lead (GRESB) certification; to meet the ambitions set to stricter metrics related development to leasing, and troducing green transaction forth in the Paris Agreeto building flexibility and all phases of property and management and green ment, the report says. longevity. Factors such as project management, there leases; and engaging in The potential introduction demographic change and are significant opportunities benchmarking exercises of strict criteria around enbusiness cycles can shift for investors and landlords such as NABERS energy ergy consumption therefore dramatically within a short to reduce waste, improve and water assessments. has clear implications for period of time, rendering business efficiencies and real estate investors and buildings obsolete and build greater value into their This article is an abstract developers as it would requiring extensive and asset, portfolio and brand. of a report was prepared require more sophisticated costly – both in financial By reducing resource by the CBRE Asia Pacific and innovative building and environmental terms – impacts and greenhouse Research Team, which forms designs including features conversion exercises. gas emissions, sizable part of CBRE Research – a such as natural ventilation Mandating more flexireductions in energy and network of preeminent and potentially those which bility into building design water use can be achieved researchers who collaborate also consider factors such and specifying building through operational, capital to provide real estate market as embodied energy in con- lifecycle periods could and behavioural intervenresearch and econometric struction cost, according to reduce material and energy tions to improve efficienforecasting to real estate the report. consumption and minimise cy and long-term profit investors and occupiers Although energy efficient environmental pollution. margins around the globe. buildings are cheaper to op- This could also have major Key priorities may include erate, they typically require implications for new-build conducting portfolio and CBRE says the report is higher CAPEX, meaning construction, meaning that individual asset sustainabil- presented for information that landlords may achieve renovations and retrofitting ity performance reviews; purposes only and is not to a lower yield from operating of older properties rather performing green building be used or considered as property in the short-term than demolition could begap analysis and certificaan offer or the solicitation of and would have to wait lon- come increasingly common. tion (including LEED, and an offer to sell or buy or subger to achieve a satisfactory The report advises national schemes such as scribe for securities or other return on investment. landlords and investors to BCA Green Mark); compilfinancial instruments.

DEFINITIONS

COST ERNS

BUILD 3D

UNDER EACH CATEGORY

C H A L L E SERVICES NGES UNDER EACH CATEGORY

E ADD VICES

AGILE PORTFOLIO SUSTAINABILITY Digital Advisory New NEW ASSET PLANNING Unbiased opinion of what proptech solutions are available in Ensur SERVICES CONSULTING (WORKPLACE STRATEGY) the market DIGITAL insig ADVISORYTen Asset of the Future Advisory

BUILD 3D PERSPECTIVES PORTFOLIO NEW ASSET PLANNING SERVICES PLANS + DIMENSION, COMMUTE (WORKPLACE STRATEGY) PLANS PRO OPTIMIZER & CALIBRATE

/ LEASING

ETING ASING

MARKETING HOST / LEASING

S

COST F U N C VALUE T I O N A ADD L C H A L L E SERVICES NGES CONCERNS

PLANS S O LAGILE UTION SPRO

(WORKPLACE STRATEGY) PLANS + DIMENSION, COMMUTE OPTIMIZER & CALIBRATE

d investors an take to the path n their

COST HOST Dimension, Commute VALUE OptimizerADD & Calibrate Demographic, catchment areas, where people are coming from/ CONCERNS SERVICES

ASSET OF THE FUTURE HOST NEW ASSET+PLA PLANS ADVISORY (WORKPLACE PLANS PROST AGILE TENANT VALUE PERSPECTIVE SUSTAINABILITY DIGITAL (WORKPLACE ST CONSULTING ADVISORY HOST DIGITAL ASSET OF THE F ADVISORY ADVISORY DIGITAL ADVISORY

opers, e meaningful highlighted place ility that can us stages of development

TECHNOLOGIES, TOOLS AND TECHNIQUES FOR

© 2 0 2 0 C B RE , INC .

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October - January 2020 - 2021

T

he newly graduated standard is the most resilient and responsive version of the IWBI's rating system to date and serves as the foundation upon which the entire WELL ecosystem is built.

“Better buildings, vibrant communities and stronger organizations have been at the core of our mission since we launched WELL in 2014,” said IWBI chairman and chief executive Rick Fedrizzi.

“It was a long road to get here, but we’ve confirmed that WELL v2 is implacably strong, robust and resilient in the face of every challenge.

“From a global pandemic to social justice, WELL v2 has proved to be a relevant, scalable and global rating system that’s responsive, inclusive, technically robust, customer-focused and applicable for any organization or space type.”

WELL v2 is a vehicle for buildings and organisations to deliver more thoughtful and intentional spaces that contribute to improved human health and well-being.

It includes a set of strategies that aim to enhance human health through design interventions, opera-

New benchmarks in the global drive for well communities After two years of extensive development, in-use application and review, the International WELL Building Institute (IWBI) launches the latest version of the WELL Building Standard tional protocols and policies and a commitment to fostering a culture of health and well-being.

Built upon the pioneering foundation of the first version of the WELL Building Standard (WELL v1), WELL v2 draws expertise from a diverse community of WELL users, medical and design practitioners, public health professionals and building scientists around the world.

WELL v2 consolidates previous iterations and pilots into a single rating system that is designed to accommodate all project

types and sectors. The system is intended to grow in specificity and specialty over time, adapting to accommodate diverse project types and geographies and in response to new evidence and ever-evolving public health imperatives.

The standard is centred on 10 concepts – Air, Water, Nourishment, Light, Movement, Thermal Comfort, Sound, Materials, Mind and Community – that impact human health and well-being.

Every feature within these concepts is underscored

by available evidence that links design, policy and building-centric strategies to health and well-being outcomes: > third-party verified by Green Business Certification Inc. (GBCI) through documentation and/or performance testing > tested through WELL v1 and/or the WELL v2 pilot, demonstrating adoption and uptake by more than 3,300 projects from a wide range of typologies representing more than 413 million square feet across 54 countries

About the International WELL Building Institute The International WELL Building Institute (IWBI) is spearheading the global movement to transform our buildings, communities and organisations in ways that help people thrive.

It focuses exclusively on the ways that buildings and communities, and everything in them, can improve our comfort, drive better choices, and generally enhance, not compromise, our health and wellness.

WELL v2 is the most recent version of the WELL Building Standard (WELL).

The WELL Community Standard pilot is a district scale rating system that sets a new global benchmark for healthy communities.

The WELL Health-Safety Rating is an evidence-based, 22

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third-party verified rating for all facility types, focused on operational policies, maintenance protocols, emergency plans and stakeholder education to address a post-COVID-19 environment now and broader health and safety-related issues into the future.

IWBI mobilises the wellness community through management of the WELL AP credential, the pursuit of applicable research, the development of educational resources, and advocacy for policies that promote health and wellness everywhere.

IWBI is a participant of the United Nations Global Compact, the world’s largest corporate citizenship initiative, and helps companies advance the UN Sustainable Development Goals (SDGs) through the use of WELL.

October - January 2020 - 2021

> includes outside input from a diverse community of health and design practitioners, subject matter experts, users and other third parties.

“As the leading tool for advancing health and well-being globally, the WELL Building Standard helps people to work, live, perform and feel their best.

“With WELL as our vehicle, IWBI helps to translate what we know into what we practice,” said IWBI President Rachel Gutter.

“We’ve channelled all that we have learned into a more accessible, adaptable and equitable rating system, which continues to be anchored by the latest scientific research and industry best practices. WELL v2 has demonstrated it is dynamic, resilient, validated and ready to change the world.

“Since the launch of the WELL v2 pilot in 2018, we’ve worked tirelessly to

incorporate feedback from thousands of members of our global community – making certain that no stone was left unturned, no strategy left unexamined and no topic left untested.

“Now, as WELL v2 has graduated from pilot stage, this moment marks the culmination of years of co-creation that will ripple throughout buildings, communities and organizations throughout the world,” Gutter says.

The WELL v2 pilot was adopted quickly by IWBI’s global community and since its release more than 3,300 projects have registered to pursue WELL Certification under the pilot.

A key element of the development process for WELL is securing input from a variety of individuals.

During the two-year pilot phase, WELL v2 underwent continuous improvement and refinement through a rigorous development

process, including a sixmonth public comment period generating hundreds of comments; the review and feedback from more than 150 WELL concept advisors; thousands more comments during the final stakeholder review; and eight published addenda to provide clarifications and strategies supporting the implementation of the WELL v2 pilot across different projects and in different locations.

In addition, the IWBI Task Force on COVID-19, comprised of 16 globally acknowledged thought leaders in the role of co-chair and nearly 600 professional and market leaders and experts from 30 countries, collectively crowd-sourced thousands more comments during a 40-day sprint to further assess ways in which WELL v2 could be further strengthened to better support prevention and preparedness, resiliency

and recovery.

From enhanced coaching support and research deep-dives to opportunities to connect and learn from peers, WELL v2 brings with it a suite of enhancements, products and services that will reset how organizations engage with WELL and the growing global community.

Through the rest of the year and beyond, IWBI will roll out new resources and tools that will transform the way individuals can engage with one another and IWBI’s digital platform. Already available, a new WELL v2 Skybridge Tool is designed to help practitioners evaluate key similarities and differences between the WELL v2 pilot and WELL v2.

Registration for new WELL v2 pilot and WELL v1 projects will close on December 31, 2020. The WELL AP exam will continue to be based on WELL v1 until the end of 2021. propertyandbuild.com

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October - January 2020 - 2021

Construction Sector Accord tackles industry challenges As New Zealand’s fourth largest employer, a high performing construction sector is vital

T

he Construction Sector Accord is a partnership between industry and government working to fix issues and challenges facing the construction sector Through its three-year Transformation Plan, the Accord is driving behaviour change to lift overall performance and achieve a safer, better skilled and more productive industry and to share good practice across the sector.

The Accord has added several experienced industry and government professionals to the Accord Steering Group (ASG) and the Transformation Delivery Group (TDG).

Members of the ASG are responsible for oversight and governance of the Accord programme, as well as acting as an advisor to government on emerging sector issues.

The Transformation Delivery Group is responsible for the design and delivery of the Transformation Plan’s workstreams and seeking wider support for sector change.

“The Construction Sector Accord will benefit from the expertise and innovation of our new members to help us achieve a safer, better skilled and more productive industry, and to help lead

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the industry through the impacts of COVID-19,” says Co-Chair Chris Bunny.

Joining the Accord Steering Group are Ross Copland, Chief Executive, New Zealand Infrastructure Commission – Te Waihanga; Nicole Rosie, Chief Executive, Waka Kotahi NZ Transport Agency; and Judi Keith-Brown, President of Te Kāhui Whaihanga New Zealand Institute of Architects.

Keith-Brown says the Construction Sector Accord has succeeded in bringing together professionals of diverse backgrounds from across the industry.

“The Construction Sector Accord responded to COVID-19 with an outstanding level of industry collaboration, leadership and urgency – that momentum is now focused on ensuring we have a united and resilient construction sector.

“From the point of view of those at the design end of the construction industry – architects, engineers, and landscape architects – while “shovel ready” projects will help in the short term, we need to make a

path for a future stream of similar work.

“I’m proud to be representing this part of the sector on the Steering Group and look forward to working with all parts of the sector to get us through this turbulent time,” says Keith-Brown.

Joining the Transformation Delivery Group are Kevin Lavery, General Manager, Sector Consulting – Society of Local Government Managers; John Sneyd, General Manager, Building System Performance – MBIE; Peter Murray, General Manager Major Projects and Advisory, New Zealand Infrastructure Commission; Duncan Kenderdine, Executive General Manager Strategy and Development, Downer NZ; and Chelydra Percy, BRANZ Chief E xecutive.

Percy will lead the Construction Sector Transformation Plan’s new environment workstream. Chelydra says she is thrilled to see the addition of the environment workstream and is delighted to be leading this work.

“The workstream presents a significant opportu-

nity to leverage great work already happening across industry and government and to identify the collective actions we can progress in this important and urgent area,” says Percy.

“BRANZ is a multi-faceted, science-led organisation. We use independent research and systems knowledge to identify practical solutions that improve building system performance. This means we are very well placed to support the Accord.

“I look forward to bringing our perspective and building on the commitment industry leaders and government have made to find pragmatic solutions to the industry’s issues together,” she says.

Co Chairs Bunny and Peter Reidy thanked the sector leaders who were leaving the Accord Steering Group and Transformation Delivery Group.

“Retiring members have been instrumental in the development of the programme and have been crucial in setting the bar and driving the Accord principles and behaviours in the sector,” says Bunny.

"The Accord responded to COVID-19 with an outstanding level of industry collaboration – that momentum is now focused on ensuring we have a united and resilient construction sector"

October - January 2020 - 2021

Accord Steering Group Co-chair

Co-chair

Peter Reidy

Chris Bunny

Graham Burke

Judi Keith-Brown

Ross Copland

Dean Kimpton

Andrew Crisp

Roger McRae

Steve Evans

Bill Newson

Leonie Freeman

Nicole Rosie

Rick Herd

Janine Stewart

Doug Johnson

Steve Webster

Chief Executive, Fletcher Construction

Chief Executive, Infrastructure Commission

Chief Executive, Fletcher Building

Chief Executive, Naylor Love

Deputy Chief Executive, Building, Resources and Markets. MBIE

Transformation Director, Construction Sector Accord

National Secretary E tu

Partner, Construction Minter Ellison Rudd Watts

Chair, Construction Industry Council. VP, Specialist Trade Fed.

Chief Executive, Ministry of Housing and Urban Development

Chief Executive, Property Council New Zealand

Managing Director, Tonkin + Taylor

President, New Zealand Institute of Architects

Chair, Construction Health and Safety New Zealand

Chief Executive, Waka Kotahi NZ Transport Agency

Chief Infrastructure Officer, Watercare

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October - January 2020 - 2021

T

he government has revealed which projects it will be funding or subsidising with its $2.6b shovel-ready investment announced in July.

This comes as a relief to the industry, who have been frustrated with the lack of information.

With the full list of projects now available, we can see where the money is and which areas offer the best opportunities.

More than $4.56b worth of projects have been selected, of which the government has committed over $2.56b of funding.

Auckland received the most funding. At $684.6m it makes up just over a quarter of the entire fund. With Auckland's large population, this comes as no surprise.

Who gets what from the $2.6b shovel-ready fund Details of over 150 shovel-ready projects worth $4.6b have been released by the government's infrastructure reference group, Crown Infrastructure Partners Based on 2018 census statistics, Auckland received $436 per person.

This pales in comparison to most other regions, with both Gisborne and the West Coast coming out on top at over $2,000 invested per person. Waikato saw the least invested per person at

only $210.

Otago and Canterbury were other big winners, getting over 20 percent of the total funding between them.

Northland saw the most projects funded, however those in the housing sector would be better off in

Auckland where the bulk of these projects are located.

Community projects are the most plentiful, while the transport sector also saw some wins across multiple regions.

Crown Infrastructure Partners

506,814 population $261 per person

Wellington Project Name

Project Owner Housing Sector

Frederick St Social Housing, Hall and Public Park

Kirva Trust

Transport Sector

$132.3m funding 5.2% of total funding Project Value

Amount Funded

$33.6m

$10m

$33.6m

$10m

$32.4m

$17m

$1m

$1m

Hood Aerodrome Infrastructure Upgrade

Masterton District Council

Wairarapa Five Towns Trails Project Stage One Tauherenikau Bridge section

Wairarapa Trails Action Group and the Greytown Trails Trust

$1.4m

$1m

Eastern Bays Shared Path

Hutt City Council

$30m

$15m

$87.9m

$50.5m

$15.9m

$8.5m

Community Sector Sacred Heart Cathedral Restoration and Strengthening

Catholic Archdiocese of Wellington

Naenae Pool + Fitness New Build

Hutt City Council

$54m

$27m

Maidstone Sportshub

Upper Hutt City Council

$15m

$12m

Masterton Skatepark Revamp

Masterton District Council (MDC)

$1m

$1m

Kapiti Gateway

Kapiti District Council

$2m

$2m

$104.1m

$44m

Social Sector Wellington District Court Refurbishment

Ministry of Justice

$14.1m

$14m

New Zealand Campus of Innovation and Sport

Gillies Group / EY

$90m

$30m

$10.8m

$10.8m

$10.8m

$10.8m

$268.8m

$132.3m

Environmental Sector Climate Resilience Package

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Wellington Region Councils

October - January 2020 - 2021

1,571,718 population $436 per person

Auckland Project Name

$684.6m funding 26.7% of total funding

Project Owner Housing Sector

Project Value

Amount Funded

$363.5m

$263.5

Kāinga Ora Mangere Priority Wastewater Upgrades

Watercare Services Limited

$25m

$25m

Auckland Housing Programme: Tamaki stormwater & park upgrade bundle

Auckland Council – Healthy Waters

$12m

$11.3m

Northcote Development Stormwater Trunk Provision

Auckland Council – Healthy Waters

$14.3m

$13m

Auckland Housing Programme: Roskill South housing infrastructure bundle

Auckland Council

$11m

$10m

Owairaka Development Stormwater Network Provision

Auckland Council – Healthy Waters

$34.1m

$31.2m

Kāinga Ora Mt Roskill Priority Water and Wastewater Upgrades

Watercare Services Limited

$65m

$65m

Unitec Housing Development

Marutūāhu Rōpū

$169.1m

$75m

Kainga Ora Tamaki priority Wastewater Upgrades

Watercare Services Limited

$25m

$25m

$8m

$8m

$316m

$182.4

Auckland Housing 3 Water Contingency Transport Sector Ferry Basin Redevelopment - Stage 1

Auckland Transport

$110m

$50m

Northwestern Busway – early deliverables

Auckland Transport/NZTA

$100m

$50m

Puhinui Interchange (Bus-Rail)

Auckland Council/Auckland Transport

$69m

$47.1m

Te Whau Pathway

Auckland Council

$37.3m

$35.3m

$446m

$222m

Social Sector Auckland City Mission HomeGround

Auckland City Mission

$110m

$22m

Faculty of Education and Social Work

University of Auckland

$336m

$200m

$19m

$6m

$19m

$6m

$14m

$10.7m

$14m

$10.7m

$1,158.5m

$684.6m

Community Sector Te Mahurehure Expansion Projects

Te Mahurehure Marae Environmental Sector

Building Auckland’s Resource Recovery Network

Auckland Council

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October - January 2020 - 2021

599,694 population $499 per person

Canterbury Project Name

$299.4m funding 11.7% of total funding

Project Owner Social Sector

Project Value

Amount Funded

$29.7m

$13.5m

Cancer Society – Christchurch Building Project

Cancer Society of New Zealand

$17.5m

$6.5m

Medi Hotel – “ Ranui Apartments”

Bone Marrow Cancer Trust

$12.2m

$7m

$198.3m

$162.3m

$15.8m

$15.8m

Transport Sector Final Section of Christchurch Coastal Pathway – Redcliffs to Shag Rock

Christchurch Coastal Pathway Group and Christchurch City Council

Mechanical Depots - Waltham

KiwiRail Holdings Group

$75m

$39m

Chatham Islands Tuuta Airport - Longer & Stronger

Chatham Islands Airport Limited

$36m

$36m

Major cycleway routes

Christchurch City Council

$71.5m

$71.5m

$153.3m

$95.2m

Community Sector Conical Hill flyline at Hanmer Springs

Hurunui District Council

$2.1m

$2m

Kaikōura Aquatic Centre

Kaikōura District Council / Kaikōura Community Charitable Trust Board

$3.8m

$1m

New Brighton Collective Recovery Project

New Brighton Project

$7m

$7m

YMCA Christchurch Central City Development

YMCA Christchurch

$43m

$43m

Ashburton District Library and Civic Centre

Ashburton District Council

$51.6m

$20m

Youth Hub Christchurch

The Youth Hub Trust

$20m

$10m

Taylors Mistake Surf Life Saving Infrastructure Rebuild

Taylors Mistake Surf Life Saving Club

$2.8m

$0.6m

The Theatre Royal Upgrade and Heritage Facility

Timaru District Council

$23m

$11.6m

$15m

$3.9m

$15m

$3.9m

$33.8m

$24.5m

Government Sector NZDF Southern Region Maintenance (Woodbourne & Burnham)

Defence Estate and Infrastructure New Zealand Defence Force Environmental Sector

Climate Resilience Package

Canterbury Region Councils

$15.5m

$15.5m

Kaiapoi Stormwater and Flooding Improvements

Waimakariri District Council

$18m

$9m

$430.1m

$299.4m

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October - January 2020 - 2021

458,202 population $210 per person

Waikato Project Name

$96m funding 3.7% of total funding

Project Owner

Project Value

Housing Sector Taupo EUL Block

Penny Homes Ltd Transport Sector

Amount Funded

$180m

$8m

$180m

$8m

$36.7m

$26.9m

Shared paths, kerb and channel and accessible paths

Taupo District Council

$10.5m

$10.5m

Te Awa Cycleway Hamilton to Cambridge section

Waipa District Council

$16.2m

$8.2m

Kōpū Marine Precinct

Thames Coromandel District Council

$10m

$8.2m

$30.7m

$25.3m

$20.6m

$20.6m

$2m

$2m

Community Sector Town Centre Transformation

Taupō District Council

Otorohonga Kiwihouse

Otorohonga Kiwihouse

Te Kuiti Sports Stadium

Game On Charitble Trust

$3.5m

$0.5m

Onemana Surf Life Saving Infrastructure Upgrade

Onemana Surf Life Saving Club

$0.6m

$0.3m

Sunset Beach Community Hub and Lifeguard Facility

Sunset Beach Lifeguard Trust

$2.3m

$0.5m

Paunaui Surf Life Saving Infrastructure Upgrade

Pauanui Surf Life Saving Club

$1m

$0.7m

Tairua Surf Life Saving Infrastructure Rebuild

Tairua Surf Life Saving Club

$0.7m

$0.7m

$22.5m

$12m

$8.5m

$1m

$14m

$11m

$23.8m

$23.8m

$23.8m

$23.8m

$293.7m

$96m

Social Sector Dementia (Eden Care) Unit

Beattie Community Trust Inc.

Southern Waikato Integrated Training Centre

South Waikato Investment Fund Trust

Environmental Sector Climate Resilience Package

Waikato Region Councils

97,467 population $682 per person

Southland Project Name

Project Owner Transport Sector

SH94 Homer Tunnel

NZTA Community Sector

$66.5m funding 2.6% of total funding Project Value

Amount Funded

$50m

$25m

$50m

$25m

$248.6m

$14m

$242.6m

$10m

Invercargill Inner City Redevelopment

Invercargill City Council and Invercargill Central Ltd

Gore Public Library building - major refurbishment

Gore District Council

$5m

$3m

Gore Multisports Complex Facilities Improvements

Gore District Council

$1m

$1m

$3m

$2.8m

$3m

$2.8m

$25m

$24.7m

$25m

$24.7m

$326.6m

$66.5m

Business Sector Venison and cattle processing plant

Alliance Group Limited Environmental Sector

Climate Resilience Package

Southland Regional Councils

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October - January 2020 - 2021

166,368 population $696 per person

Hawke's Bay Project Name

$115.8m funding 4.5% of total funding

Project Owner

Project Value

Housing Sector

Amount Funded

$16.5m

$15.5m

Flaxmere Social Housing

Hasting District Council

$5m

$4.5m

Iona Rd

Hasting District Council

$11.5m

$11.5m

$22.7m

$22.7m

Transport Sector Napier - Whakatu Inland Port

Napier Port

$20m

$20m

Ellison St / Chambers connectivity

Napier City Council

$2.7m

$2.7m

$47.8m

$38.4m

Community Sector Hawke’s Bay Regional Aquatic Centre

Hawke’s Bay Fitness Centre Trust

$33.3m

$32m

Pettigrew Arena expansion

Regional Indoor Sports/Events Centre

$14.5m

$6.4m

$19.2m

$19.2m

$19.2

$19.2

$20m

$20m

$20m

$20m

$126.2m

$115.8m

Environmental Sector Climate Resilience Package

Hawke’s Bay Region Councils Business Sector

Te Mata Mushrooms

Te Mata Mushrooms

225,186 population $987 per person

Otago Project Name

Project Owner Housing Sector

Energy Hardship Alleviation – Housing and Energy

Blueskin Energy Ltd

Transport Sector

$222.2m funding 8.7% of total funding Project Value

Amount Funded

$65m

$2.5m

$65m

$2.5m

$307m

$85m

Queenstown Arterials Stage 1

Queenstown Lakes District Council

$250m

$50m

Queenstown Town Centre

Queenstown Lakes District Council

$57m

$35m

$20.7m

$9.7m

$16.9m

$7.4m

Community Sector Clutha Community Hub Charitable Trust and Clutha District Council

Clutha Community Hub Charitable Trust and Clutha District Council

Lakes District Museum, Arrowtown Seismic Strengthening and Restoration Project

Lakes District Museum Inc

$3.5m

$2m

Ophir Swimming Pool

Ophir Welfare Committee / Central Otago District Council

$0.1m

$0.1m

Ophir Peace Memorial Hall

Ophir Welfare Committee / Central Otago District Council

$0.2m

$0.2m

$31.7m

$25m

$31.7m

$25m

$100m

$100m

$100m

$100m

$524.4m

$222.2m

Social Sector Otago Polytechnic : Building & Construction Trade Training Centre

Otago Polytechnic Environmental Sector

Climate Resilience Package

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Otago Councils

October - January 2020 - 2021

179,076 population $949 per person

Northland Project Name

Project Owner Transport Sector

$170m funding 6.6% of total funding Project Value

Amount Funded

$50.9m

$26.3m

Active Modes Urban Shared Paths Programme

Whangarei District Council

$40.1m

$16m

Kaiwaka footbridges

Kaipara District Council

$0.8m

$0.8m

FNDC jetties - Pukenui, Unahi, Rangitane

Far North District Council

$5m

$4.5m

Sealing Kaipara roads

Kaipara District Council

$5m

$5m

$236.9m

$115.6m

Community Sector Lindvart Park – Sportsville Kaikohe

Griffiths & Associates Limited

$9.2m

$6m

Ruakaka Recreation Centre

Griffiths & Associates Limited

$6.3m

$2.5m

Pohe Island Bike Park

Bike Northland Incorporated

$5m

$2m

Hihiaua Cultural Centre

Hihiaua Cultural Centre

$4m

$3m

Kauri Museum

Kaipara District Council

$3m

$3m

Northland Rugby

Northland Rugby Union

$2m

$1.5m

$32m

$3m

$11.8m

$11.8m

$1m

$1m

$1.8m

$1.8m

Mangawhai jetty, community and infrastructure facilities Far North District Council Mid-North Sports Package

Kaipara District Council

Animal Shelters

Far North District Council

He Korowai Trust housing infrastructure

He Korowai Trust

Te Hiku o te Ika Revitalisation - Paths and Walkway

Far North District Council

$27.9m

$7m

Paihia Waterfront Development

Far North District Council

$25m

$8m

Dargaville Racecourse development

Kaipara District Council

$0.9m

$0.9m

Ancient Kauri Trail

Kaipara District Council

$11m

$4m

Baylys Beach Lifesaving Facility Development

Baylys Beach Community Trust

$2m

$0.1m

Oruku Landing Conference & Events Centre

Northland Development Corporation

$94m

$60m

$3m

$3.1m

Social Sector Maungaturoto Dementia Care Facility

Maungaturoto Charitable Trust

$1m

$1.3m

Whangarei Boys High School

Whangarei Boys High School

$1m

$1m

Paparoa Housing

Paparoa Community Charitable Trust

$1m

$0.8m

$114.1m

$25m

Environmental Sector Climate Resilience Package

Northland Councils

$13m

$12.5m

Papakawau Estuary Resilience

NZTA

$10m

$5m

Mangonui Waterfront Enhancement and Regeneration

Far North District Council

$10.3m

$1.5m

Kaipara Stopbank Enhancement

Kaipara District Council

$74.8m

$6m

$404.9m

$170m

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31

October - January 2020 - 2021

117,561 population $826 per person

Taranaki Project Name

Project Owner Housing Sector

Mawhitiwhiti Kanihi Pa Build Project

Mawhitiwhiti Kanihi Pa Committee Transport Sector

Nukumaru Station Road construction

South Taranaki District Council Community Sector

$97.1m funding 3.8% of total funding Project Value

Amount Funded

$5m

$5m

$5m

$5m

$7.3m

$7m

$7.3m

$7m

$81m

$33.4m

Yarrow Stadium Redevelopment

Taranaki Regional Council

$50m

$20m

Replacement Indoor Aquatic Facility

Stratford District Council

$16m

$8m

Te Ramanui o Ruaputahanga Library, Arts and Culture Centre

South Taranaki District Council

$13m

$3.4m

$2m

$2m

$3m

$3m

$3m

$3m

$48.7m

$48.7m

$37m

$37m

$11.7m

$11.7m

$145m

$97.1m

Children’s Cycling Education Park And Basketball Court Stratford District Council Business Sector Dawson Falls Lodge Development

Te Rere o Kapuni Limited Environmental Sector

Thermal Drying Facility Replacement

New Plymouth District Council

Green School New Zealand

Green School Properties

47,517 population $2,229 per person

Gisborne Project Name

Project Owner Community Sector

$105.9m funding 4.1% of total funding Project Value

Amount Funded

$58.9m

$53.4m

$46.1m

$40.4m

Redevelopment of the Gisborne Olympic Pool

Gisborne District Council

Rugby Park grandstand rebuild

Poverty Bay Rugby Football Union

$7.6m

$8m

Midway SLSC Surf Rescue Community Hub

Midway Surf Life Saving Club (SLSC)

$5.2m

$5m

TBD

$45m

TBD

$45m

$7.5m

$7.5m

$7.5m

$7.5m

TBD

$105.9m

Transport Sector Marine Infrastructure

TBD Environmental Sector

Climate Resilience Package

32

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Gisborne Council

October - January 2020 - 2021

238,797 population $534 per person

Manawatu-Wanganui Project Name

Project Owner Housing Sector

$127.6m funding 5% of total funding Project Value

Amount Funded

$66m

$37.5m

$4.7m

$4.7m

Papaioea Place Community Redevelopment

Palmerston North City Council

Tairaka Growth Area: Enabling Infrastructure

Horowhenua District Council

$38.1m

$25m

Social and affordable housing for Ruapehu District

Ruapehu District Council

$23.2m

$7.8m

$25.1m

$23.7m

$9.1m

$9.1m

$16m

$14.6m

$65.9m

$14.5m

$12m

$11.6m

$53.9m

$2.9m

$26.9m

$26.9m

$26.9m

$26.9m

$25m

$25m

$25m

$25m

$208.9m

$127.6m

Transport Sector Marton Rail Hub

Rangitīkei District Council

Route 52 Improvements (Central Hawkes Bay to Weber) Tararua District Council Community Sector Sarjeant Gallery

Whanganui District Council

Horowhenua Business Park Infrastructure

The Horowhenua Company Limited

Environmental Sector Climate Resilience Package

Manawatū-Whanganui Councils Social Sector

New Whanganui Police Hub

New Zealand Police

31,575 population $2,141 per person

West Coast Project Name

Project Owner Transport Sector

$67.6m funding 2.6% of total funding Project Value

Amount Funded

$29.3m

$25.4m

$13m

$13m

$7m

$6.8m

Cron Street Extension , Cron Street Footpath Extension, Westland District Council and Old Christchurch Road Seal Extension Franz Josef Developments Ltd

$4.7m

$1.2m

Moonlight Creek Bridge Replacement

Grey District Council

$2.6m

$2.6m

Tidal Creek #2 Bridge Replacement

Buller District Council

$2m

$1.8m

$3m

$3m

$3m

$3m

$39.3m

$39.2m

Slope Stability – Omoto Slip

KiwiRail Holdings Group

Port Package

Buller District Council

Community Sector Hokitika Swimming Pool Renovation

Westland District Council Environmental Sector

William Stewart Bridge Replacement

Grey District Council

$5.9m

$5.8m

Rough River (Otututu River) Bridge Replacement

Grey District Council

$5.1m

$5m

Solid waste: Fox Glacier and Butlers

Westland District Council

$3.3m

$3.3m

Hector Historic Landfill

Buller District Council

$1m

$1m

Climate Resilience Package

West Coast Councils

$24m

$24.1m

$71.6m

$67.6m

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33

October - January 2020 - 2021

Marlborough, Nelson & Tasman

150,609 population $575 per person

Project Name

$86.6m funding 3.4% of total funding

Project Owner

Project Value

Transport Sector

Amount Funded

$54.3m

$44.8m

$19.5m

$18m

The Whale Trail

Marlborough Kaikōura Trail Trust

SH 60

NZTA

$6.8m

$6.8m

Port Tarakohe Redevelopment

Tasman District Council

$28m

$20m

$25.3m

$11m

$25.3m

$11m

$12.8m

$12.8m

$9.8m

$9.8m

$3m

$3m

$53.3m

$18m

$53.3m

$18m

$145.7m

$86.6m

Community Sector Blenheim Library/Art Gallery

Marlborough District Council Business Sector

AIMEX: Nelson Port Slipway

Aimex Nelson Ltd

Apollo Aviation

Apollo Aviation Environmental Sector

Climate Resilience Package

Tasman District Council

308,499 population $709 per person

Bay of Plenty Project Name

$218.7m funding 8.5% of total funding

Project Owner Housing Sector

Project Value

Amount Funded

$139m

$114m

Unlocking urban land development (Wharenui Road, SH30, SH30 stage 2(a))

Rotorua Lakes Council with Ngāti Whakaue Tribal Lands and NZTA

$55m

$55m

Omokoroa Road Safety Upgrades and Urbanisation Sites

Western Bay of Plenty District Council

$14m

$14m

Te Papa Spatial Plan and integrated landuse and multi modal movement strategy package

Tauranga City Council

$70m

$45m

$57m

$38m

$57m

$38m

$35.1m

$35.1m

$11.9m

$11.9m

$23.2m

$23.2m

$11.2m

$11m

$11.2m

$11m

$34.3m

$20.6m

Business Sector Wai Ariki Hot Springs and Spa - Rotorua

Pukeroa Lakefront Holdings Limited

Environmental Sector Taheke Geothermal Power Station Enabling Works

Eastland Generation Limited

Climate Resilience Package

Bay of Plenty Councils Social Sector

St John Rotorua

St John Community Sector

Kaingaroa Community Development Project

Rotorua Lakes Council, Te Puni Kokiri

$14m

$5m

Ōpōtiki CBD

Ōpōtiki

$12m

$11.9m

Papamoa Surf Rescue Base and Mixed Use Community Facility

Papamoa Community Surf Rescue Base Trust (Charities #CC52347)

$5.4m

$0.8m

Eastern Region - Surf Lifesaving Rescue Centre

Surf Life Saving New Zealand

$2.9m

$2.9m

$276.6m

$218.7m

34

propertyandbuild.com

October - January 2020 - 2021

Never make counteroffers when employees resign The best time to make employees want to stay is long before they even think about looking for another job, says Jeff Haden

E

mployee retention is a concern for most companies. The thought of losing above-average performers can feel like a catastrophe -- and cause you to make a counteroffer in a last-ditch offer to keep them onboard.

The employee loses While your intentions may be good, you may actually do the employee a disservice.

According to a survey of more than 100 US based human resource executives in regards to employees who accept a counteroffer to stay with their current employer: Between 60 and 80 percent of senior leaders say the employee experiences diminished trust and compromised reputation within the company Nearly 80 percent suffer from a lack of trust and reputation among senior leaders within the company Even though they stayed, nearly two-thirds are seen as less loyal In short, you and others in your company may forgive an employee for wanting to leave, but you won't forget.

You'll almost surely see the employee through the lens of the counteroffer you felt, in hindsight, forced to make -- and, no matter how hard you try not to, treat the employee a little differently in the future.

And even if you do rise above, other employees may not. Because people

usually know what other people make -- they almost always resent the person who was given more money to stay.

Your business loses According to the same survey, few employees who stay because of a counteroffer stay for long. One respondent said, "In my experience, counteroffers don't work 95 percent of the time. And when they do work it's usually only for the short term -- someone who wanted to leave is eventually going to leave anyway."

Another said, "My gut feeling and my observations tell me that people who accept are going to be gone, whether it's in a year or two years."

While statistics vary, at least one recent survey shows that over half of respondents quit a job because of their boss, and an additional one-third have considered quitting because of their boss.

People who quit jobs often actually quit their manager. More money won't fix, over the long term, a poor professional relationship or the desire for a shorter commute and a lot more weekends off for example Other times, employees leave in hopes of greater developmental opportunities. Or in hopes of better chances for advancement.

Or to gain new skills.

Those things you may be able to fix as long as you address those issues before the employee starts looking for another job.

Just as your employees won't care about your business until your business shows it cares about them, the employees you want to keep want to be loyal -- but you have to be loyal to them first.

How to keep them in the first place Be positive, encouraging, hard-working, and constantly seeking to improve

the skills and careers of your employees. That's the best way to keep great employees, even those who occasionally wonder if the grass is greener elsewhere.

Constantly look for informal opportunities to allow employees to expand their skills and continue to shine.

Ask about their longrange goals and create opportunities that will help them reach their goals. If they eventually want to own their own businesses, your response is simple: Get them involved in everything.

If they're smart -- and clearly they are, or you wouldn't want to keep them -- they'll recognise the value of those experiences.

The key is to provide that value before an employee wants to leave.

Extracted and edited from by an article written in INC by contributing editor Jeff Haden.

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35

October - January 2020 - 2021

Simple ways to protect against cyberattacks Online criminal groups are exploiting the fear brought about by the novel coronavirus to target people and organisations

A

lthough New Zealand has been quite successful at crushing the Covid-19 curve, the crisis is forcing individuals and businesses to embrace new practices such as remote working and social distancing.

Kiwis are more digitally connected as result of Covid-19. There has been a massive increase in people shopping online and working remotely.

Attacks are increasing, both in scope and frequency. As authorities focus on the health and economic impact of the pandemic, cybercriminals have come up with ways to capitalise on the situation.

Organisations and their employees ought to take measures to mitigate risk as they shift to remote working to comply with social distancing rules.

According to a recent Barracuda Networks study, 40 percent of organisations in New Zealand had at least one data breach since shifting to remote working.

During the same period, 37 percent of employees encountered a Covid-19 themed phishing email.

These are some of the most common types of cyberattacks faced by individuals and businesses in New Zealand: Phishing Hackers are using Covid-19 in phishing attacks to impersonate government ministries as well as pop36

propertyandbuild.com

ular brands in an attempt to mislead people. These emails contain malicious links that will download malware into your device when you click on them.

There has been a spike in phishing attacks in New Zealand since early 2020.

Ransomware Cybercriminals are using ransomware attacks to target primarily public institutions, medical centres and hospitals. This type of attack holds your system data or network hostage until a ransom is paid.

Institutions are more likely to pay up because they cannot afford to be locked out of their systems during a global pandemic.

Malware Besides ransomware, online criminals are using other types of malware to terrorise individuals and businesses during Covid-19.

For instance, hackers are

embedding different types of malicious software such as spyware and trojans in interactive Covid-19 websites and maps. There has been a significant increase in coronavirus-themed domains.

How to increase protection There are several steps businesses and New Zealanders can take to mitigate these risks. These include: Use a VPN A Virtual Private Network, also known as a VPN, provides a safe passage for your online traffic between your computer and the internet server. A VPN provides online privacy and anonymity and is particularly important when connected to public Wi-Fi when working remotely.

Strong passwords Having strong, unique passwords for all your

online accounts is one of the most effective ways to keep the bad guys out. Also, consider enabling two-factor authentication on your online accounts for an extra layer of protection.

Create a backup Backup mission-critical data and make sure that it's stored independently from your system on an external drive or the cloud. Be sure to confirm the validity of cloud backup.

Update your system Check your software and systems to make sure that they are up to date. Regular updates ensure that any vulnerabilities that attackers could abuse are patched before it’s too late.

By Mathew Stern Note: The links explaining the covid curve, remote working and VPN are to commercial websites

October - January 2020 - 2021

safetynews.co.nz

37

October - January 2020 - 2021

38

safetynews.co.nz

October - January 2020 - 2021

Employer guidance in a new world Drowning in red tape SLUG

Subsidies for SMEs

WORSE THAN

ASBESTOS

The deadly carcinogen hidden underground INFRASTRUCTUREBUILD.COM YEARBOOK 2018

39

October - January 2020 - 2021

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RESPONSIBLE CARE NZ, YOUR ONE-STOP WORKPLACE CHEMICAL SAFETY EXPERTS

safetynews.co.nz

October - January 2020 - 2021

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egulators need to effectively engage with “the regulated” to identify whether a chemical safety issue exists and if it does, can it be resolved within existing compliance requirements.

This process will enable implementation of pragmatic performance standards together with the necessary infrastructure to enable superior performance. Hopefully, stemming the rising tide of increasingly risk adverse bureaucracy.

Responsible Care NZ was invited to report on our industry’s view of the state of workplace chemical safety.

There are many facets involved, although several key issues prevail affecting the ability, particularly for SMEs, to comply with their legal and moral obligations to safely manage their chemical inventory.

If it ain’t broke . . .

One of the three midwives responsible for creating our world class, much admired GHS **-based HSNO legislation was the Industry HSNO committee, under the inspired chairmanship of the late Tony Haggerty of the NZ Fire Service.

The committee developed the performance based, best practice criteria which established the framework for a sensible, world class chemical management regime.

Enforceable industry produced codes of practice provided the numerous government agencies and industry with the best practice information required to enable training, compliance, and enforcement.

Regrettably, the process was stopped before the required infrastructure was in place, resulting in many of the difficulties obstructing widespread compliance

Please Santa, no more regulations

Many participants in the recent Conferenz 360 Hazardous Substances online seminar were adamant we do not need more unfathomable prescriptive performance standards

today.

Our effective working relationship with the proactive hazardous substances team within the Department of Labour aligned and helped deliver initiatives to educate business operators while ensuring the regulated, the regulators and the emergency responders endorsed best practice solutions to comply with evolving chemical management requirements.

Stalled at the starting gates Ten years on, industry welcomed the transfer of workplace chemical management to the Health and

Safety at Work (Hazardous Substances) regulations 2017 administered by Worksafe NZ as the overdue opportunity to fix shortcomings contributing to widespread noncompliance.

Political expediency meant the comprehensive update was postponed.

The promised HSNO Phase II review to enable overdue improvements to facilitate compliance and enforcement is reportedly not a government priority.

Regulating solutions to regulatory problems without industry engagement is both counterproductive and wasteful of scarce resources.

Self regulation proves its worth The chemical industry is a proactive solution provider.

We are the “go to” for clarifying confusing compliance advice. We are filling the chasm created by removing the sound, but often poorly delivered, HSNO Approved Handler requirement with our increasingly popular robust Competent Chemical Handler qualification.

Replacing comprehensive, user friendly industry codes of practice with good practice guides frustrates time poor business operators grappling with complex and often conflicting comsafetynews.co.nz

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October - January 2020 - 2021 pliance advice.

Pragmatic, cost effective initiatives include site assessments, providing a fresh pair of eyes to determine chemical safety performance, including preparedness for a chemical incident.

Our 24/7 emergency advisory service provides peace of mind your chemical incident is in safe hands while enabling an independent evaluation of site emergency preparedness together with the performance of the emergency services responding to a chemical incident.

Certification needs urgent attention The faltering Certification regime requires urgent attention. The continuing loss of experienced certifiers compounded by a reluctance to engage in resolving complex, inflexible and increasingly controversial compliance requirements often involving considerable expense for clients does not encourage, let alone facilitate, compliance.

Industry initiatives such as accurate compliance advice, site visits and specialised training encourages and enables compliance at minimal cost is a minimum response. Beyond compliance is the maxim for chemical safety through Responsible Care®.

Failure to contact the experts Nobody knows more about safe chemical management than the chemical industry, yet our advice is rarely sought, especially in determining whether a problem exists, let alone avoiding the futility of even more prescriptive regulation.

The international chemical industry’s Responsible 42

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Care® goal of “no harm to people or our environment resulting from our products and operations”, reflects the commitment of over 90 percent of global chemical suppliers. It is a major contributor to national health and safety.

Chemical management under siege To remain fit for purpose until more extensive improvements are possible, an effective partnership with key government agencies to overcome impediments to compliance is urgently required.

Industry requires: • Certainty ranging from government economic goals to site compliance-related “what to do and how to best do it” • Consistency of universally agreed performance and best practice solutions • Competency of employers, employees, government, enforcement agencies, certifiers, contractors and emergency responders must all be fit for purpose • Collaboration with

authorities in a mutually beneficial partnership • Cost effectiveness in the form of a business plan demonstrating an appropriate return on our joint contributions.

Reinforce with training These fundamentals are reinforced with joint chemical training for workplace inspectors, certifiers, approved consultants, training providers and industry reflecting enforceable codes of practice illustrating best industry practice.

Industry expertise is critical to success yet largely absent from pan government discussions, which too often lead to more regulations to address perceived shortcomings in safely managing the chemicals present in every workplace.

Industry-centric solutions Our much-admired chemical management regime featuring the unique seamless transition from transport to workplace is ailing but can be revived. We have the “know how” but not yet

the opportunity.

One of 65 Responsible Care chemical associations organisations worldwide, Responsible Care NZ remains an “impatient optimist”. As a key solution provider, we are confident we can collectively improve performance and move beyond compliance, ensuring safer management of our products throughout the product life cycle.

We just need the invitation.

But please . . . no more regulations! ** The GHS is an acronym for The Globally Harmonized System of Classification and Labeling of Chemicals.

Barry Dyer

Chief Executive, Responsible Care New Zealand

October - January 2020 - 2021

Cancer-causing dust released by earthworks Tiny needle-like fibres that can become airborne if bedrock is disturbed has the potential to cause an asbestos-type disease, scientists warn

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he fibres come from a mineral called erionite which originates in silica-rich volcanic rock commonly found in many parts of the world and especially throughout the Auckland region. Once disturbed – during construction projects for example – dust containing erionite can become airborne and, if inhaled, cause malignant mesothelioma, a disease more usually associated with exposure to asbestos.

Chief Science Adviser to the Prime Minister from 2009-2018, Sir Peter Gluckman reported in 2015 that erionite was a more potent carcinogen than asbestos. New Zealand’s rate of malignant mesothelioma is high by international standards but no-one knows exactly why.

In an article published in the latest edition of the New Zealand Medical Journal, researchers from the University of Auckland and Unitec Institute of Technology say international research shows erionite is an emerging occupational and public health risk.

Associate Professor Martin Brook from the University of Auckland, a co-author of the article, says New Zealand should be thinking about a standard for erionite exposure and how to test for it.

“Two million tonnes of rock was removed for the City Rail Link project and potentially at least some of that rock could contain

Auckland City Rail Link earthworks

erionite,” he says.

“But currently there are no international or New Zealand occupational exposure limits or standard low-cost field sampling and analytical methods for erionite.”

Co-author Associate Professor Jennifer Salmond, also from the University’s School of Environment, says the effects of exposure to erionite have not been studied in New Zealand but international research shows it generally takes between 20 and 40 years from exposure to subsequent development of disease.

“This lag between dose and response makes it very difficult to know when, where or how much erionite people might have been exposed to prior to getting ill.

“In Auckland we need to know where this mineral is

and how much is present in soils and air before we can quantify the risk it presents to both occupational and public health.”

“We should do this research as a priority.”

That is particularly so given the size and number of major ground engineering and construction projects in Auckland, including the now-completed Waterview tunnel and current work on the CRL, Associate Professor Brook says.

“Most of the excavations being done for large construction projects involve the type of rock where erionite can be present, often with waste rock and soil loaded onto trucks and dumped. Earthworks for residential subdivisions may also be an issue.”

Erionite does not pose a health risk when it is

embedded in rock below ground. Studies around the world have shown that where erionite is present in bedrock which has been disturbed either by natural processes or by human activity, there are increased rates of malignant mesothelioma.

International studies have also shown that people working in the construction or quarrying industries are most at risk, Associate Professor Salmond says.

Anyone at risk from exposure should be wearing full protective gear because it’s likely erionite fibres can be carried on clothing.

Erionite is only now being seen as an emerging health risk with the International Commission on Naturally Occurring Asbestos recently establishing a working group on erionite, she says. safetynews.co.nz

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October - January 2020 - 2021

A major step in fatigue management As we continue to work through the COVID-19 pandemic, employers are recognising their role and responsibility for providing employees with safe and healthy working conditions

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his focus on employee well-being is particularly relevant in heavy industry, where workers routinely perform dangerous or complex tasks in high-risk environments, all while working extended shifts, often at night and in remote environments.

Fatigue management has emerged as a priority for heavy industry firms in construction, mining and a number of other vertical industries with complex operations.

They are now recognising the proven correlation between workforce fatigue and operational productivity.

Fatigue Science, which provides predictive analytics on human performance to industrial firms, elite sport teams, and the military, has launched ReadiAnalytics™, an analytics and fatigue management information system.

ReadiAnalytics delivers real-time, scientifically validated, and objective visibility into workforce fatigue levels and its underlying causes.

New data reveals that less fatigued workforces are measurably more productive and that data confirms the well-established benefits for employee health, 44

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safety, and retention.

As the incremental productivity benefits and associated return on investment are now clear, leadership teams are seeking objective, timely and quantified measures of on duty fatigue levels for each crew or team and site in their operation.

Industrial firms pursuit of objective data to support performance optimisation coincides with a larger trend -- the shift toward data-driven decision-making enabled by the Industrial Internet of Things (IIot).

While data on machine performance has grown exponentially in recent years, data on workforce performance and fatigue have long been viewed as a blind spot for otherwise data-rich organizations.

“Our customers today have operational data flowing from nearly every asset in their operation: trucks, pipes, shovels, and pumps all generate millions of data points each day,” says Andrew Morden, President and Chief Executive of Fatigue Science.

“And yet, most industrial firms lack objective measures on the performance of their most valuable asset: their workforce.”

“When it comes to the causes and extent of worker

fatigue, most management teams are essentially ‘flying blind’. Now with ReadiAnalytics , firms no longer need to guess when and where fatigue is present, or how significant it is. The validated data is right there in the dashboard, on-demand and in real-time.”

Unlike subjective methods for estimating crew fatigue ReadiAnalytics captures anonymous sleep data from a sample of crew workers and then processes it alongside a variety of circadian factors with a scientifically validated biomathematical model.

The model then quantifies which on-duty crews will be the most and least fatigued, and how that fatigue will trend over time as their shift pattern progresses.

Crucially, worker privacy is preserved, as insights are anonymised and aggregated for each crew, site, and the company.

Beyond providing fatigue data, ReadiAnalytics also reveals the underlying causes of this fatigue.

It segments the portion that is attributable to structural factors, like schedules, versus human factors, such as sleep health and habits.

These insights are instrumental in informing specific strategies to reduce fatigue

levels, and ultimately, drive concrete improvements to productivity, safety, and cost.

“So often, and particularly at this moment in history, employers are being forced to choose between their bottom line and the health and safety of their workers.

“Reducing fatigue, fortunately, is one of those rare opportunities where safeguarding workers’ health also maximizes productivity,” says Morden.

“With ReadiAnalytics, we’ve shown customers a direct correlation between workers’ fatigue levels and their hourly output.

“For example, we paired our proprietary fatigue data with telematics data from haul trucks and mine shovels,” adds Morden.

“At the same time, sleep is fundamentally important for a healthy immune system, with documented benefits for both reducing short-term absenteeism and increasing long-term employee retention.

“Reducing the hard costs from accidents, incidents, and equipment damage attributable to fatigue is also a key motivator for employers looking to use our predictive analytics to achieve a measurable reduction in fatigue,” he says.

October - January 2020 - 2021

FETS (Fire and Emergency Training Solutions Ltd) is your workplace safety partner. We are in business solely to help you keep your team safe from harm through education and training.

We are flexible and can adapt quickly to your requirements.

We focus on three main areas:

Be proactive

Avoiding accidents in the workplace and at home by educating your team in safe practices for: • Confined Space Entry

• Working at Height

• Permit to Work

• Lock Out, Tag Out

• Fire Extinguisher

• Fire / Floor Warden

• First Aid

• Hearing Conservation

• Spill Kit

• Breathing Apparatus

• Elevated Work Platform

• Emergency Response Team

Completed to unit standards or tailored to meet your needs

Be prepared

Both as a business or a team member in the workplace: • Preparedness training for your emergencies • Risk Assessment • Training material tailored to your organisation • Nationwide delivery of training • Consultancy for emergency response / evacuation plans

Take action

When the unthinkable does arise: • Consultancy in the area of rescue planning • Application of bespoke emergency plans • Emergency response training – tailored to your organisations needs

Contact us Ph: 04 939 2669 . . 45 www.fets.co.nz safetynews co nz

October - January 2020 - 2021

Rules for managing remote workers COVID-19 has changed where some of us work, which can come with new challenges around employment law, health and safety, as well as costs, privacy and data security issues

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mployers should consider whether they need to update the employment agreement to reflect the variations made to working arrangements. If the variation to the agreed hours of work or place of work is permanent, then the employment agreement should be updated.

Health and safety Under the Health and Safety at Work Act 2015 and related regulations, employ-

ers must provide employees with the highest level of protection from workplace health and safety risks, so far as is reasonably practicable. This includes risks to both physical and mental health.

If employees regularly work from home, employers should consider whether this would be a ‘home-workplace’ that needs a health and safety risk assessment. This could include things like ergo-

nomics of the workstation setup, fire safety equipment, and first aid kits.

If an employee lives alone and works at home regularly, there may also be risk of social isolation. Employers should make sure that employees have plenty of opportunities to stay connected with colleagues – either alternating days working at home and in the office, or having regular ‘virtual catchups’ through phone, email or video conferencing.

Equipment and expenses Employers should consider whether they need to purchase or provide allowances to cover additional office equipment and related costs to enable employees to work effectively from home. These include computers, screens, video and audio devices, and electricity or telecommunication costs.

There is no specific legal entitlement to allowances.

The payment of and level of

Skill-Up INFRASTRUCTURE APPRENTICESHIPS & TRAINING

ELIGIBLE FOR FREE TRADES TRAINING

FI N D OUT MORE

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ENROL NOW connexis.org.nz/freetradestraining

October - January 2020 - 2021

allowances, over and above salary or wages, can be agreed to by the employer and employee.

Employers should also consider COVID-19 related expenses for working from home.

Monitoring and privacy Employers should think carefully about monitoring employees’ productivity whilst working remotely.

Employers should only consider setting up cameras and software to monitor employees if it’s reasonable, for example, to ensure their safety. Monitoring staff can affect their morale and productivity because they may feel that they are not trusted by their employer. Employers need to be mindful of the different privacy concerns that arise when monitoring or filming

occurs in the employee’s home environment.

Information and data security The company’s information and data may not be as safe at an employee’s home as at the business’ premises. This is because employers can control better the security of their information and data at their premises.

Whereas, at home, employ-

ees may be using different devices and work from a different network and system which are outside the control of the employer.

However, there are additional security measures that employers can apply to enable safe remote working. www.employment.govt.nz

THE SAFETY KNIFE

SPECIALISTS The ultimate in design and innovation. MARTOR brings you the most versatile range of safety knives on the market.

For information on the complete MARTOR range of safety knives visit or call: martoraustralia.com.au +61 3 5940 4476 safetynews.co.nz

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October - January 2020 - 2021

KASK helmets lead the way in safety and design Sponsored Article

KASK’s mission is to maintain a constant evolution of high-quality products and to keep a perfect balance between technological excellence, functionality, safety, and attractive design in their products

K

ASK, based in Italy, specializes in developing, designing, and manufacturing of safety helmets of the highest quality.

Founded in 2004, thanks to a talented team of expert engineers and partnerships with some of the top leading companies in the market, KASK has gone through a tremendous growth and success in a short time, giving way to the foundation of two additional subsidiaries:

located in United States and Australia.

More and more companies are choosing KASK, whose helmets are at the forefront of the cycling, ski, mountaineering, equestrian, work safety and search and rescue industries.

Constantly reaching new markets, KASK is today among the most important brands in the professional and sporting world, by maintaining high safety standards to ensure top

KASK Zenith AS/NZS 1801 Type I

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quality helmets that offer the best protection for the user.

Distributed in more than 60 countries, KASK safety helmets are today a benchmark for professionals in many industries such as rope access, work at height, tree care, industrial, utilities, emergency and rescue and moreover.

All KASK products are 100% made in Italy and passed through the most rigorous safety and quality

tests of the KASK’s distinctive Comfort Safety and Design, internationally recognized in 2016 as winner of the “ iF Design Award “ and the “Red Dot Award.”

KASK HP Plus and Zenith series of safety helmets distributed in New Zealand, are all AS/NZS 1801 (Type I) certified.

Unlike many safety helmets or hard hats on the market, KASK safety helmets are all lined internally with Expanded Polystyrene (EPS) for an extra level of safety.

KASK safety helmets owe their unique qualities to the genius of the integrated structure system developed

by KASK team, which combines the greatest level of protection with the lightest possible weight of the helmet to ensure premium comfort and safety for the wearer, while ensuring best performances with its vast range of helmets accessories.

KASK HP Plus AS/NZS 1801 Type I

October - January 2020 - 2021

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October - January 2020 - 2021

E

astern Bays Hospice Trust, operating as Dove Hospice, was ordered to repay money owed to six workers after it unilaterally reduced workers’ salary to 80 per cent before making them redundant.

The Employment Relations Authority (ERA) determined the pay deductions were not agreed to by the workers and were therefore not legal. This has prompted a reminder from the Labour Inspectorate to employers of the need to follow legal procedures when making changes to workers’ pay or other agreed terms and conditions.

Employment New Zealand National Manager George Mason says employment law continues to apply to all employment relationships.

This includes anything that has been agreed to in an employment agreement.

“We understand that many workplaces will need to make changes to adapt to and recover from the impacts of COVID-19.

These changes can include different ways of working, varying hours or days of work, and in some cases, changes to the rates of pay.

“What employers need to remember, however, is that all changes need to be recorded in writing and employees need to be consulted in good faith and given the opportunity to consider and agree to these changes. In any situation, pay cannot be reduced below the minimum wage of $18.90 per hour. Failure to follow these rules may lead to legal action and penalties.

“Likewise, employees need to discuss and raise any issues, concerns or changes to their circumstances with their employer as soon as they can.

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Employers warned against illegal pay cuts An employer has been ordered to repay six workers after reducing their salary to 80 per cent

“In these challenging times, it is more important than ever for employers and employees to work together,” Mason says.

Helpful links: • Coronavirus: What businesses need to know • Modifying employment agreements: Information on legally making changes to employment agreements can be found on the Employment New Zealand website.

• Mediation: Where the employer and employee cannot agree, MBIE offers a free, independent mediation service. Parties are encouraged to seek help early, before the working relationship is damaged beyond repair. www.employment.govt.nz

October - January 2020 - 2021

Evolving guidelines for heavy vehicle road managers Austroads has published a report reviewing heavy vehicle road access guidelines and tools across Australia and New Zealand

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he report contains a decision-making framework so road managers can consistently and efficiently benefit from using these tools.

New Zealand operates under its own regime while heavy vehicle access approval conditions vary across Australian jurisdictions.

Australia’s Heavy Vehicle National Law (HVNL) provides the overarching regulatory framework for heavy vehicle access (mass, dimensions and loading).

The HVNL has been adopted, with some derogation, in most states and the Australian Capital Territory.

Western Australia and the Northern Territory have not adopted the HVNL and decisions on road access are made under jurisdictional law.

“The report provides road managers with a level of clarity on heavy vehicle decision-making processes across Australia and New Zealand. It identifies common approaches and differences, to enable road managers to consider and apply this information in their own jurisdictions,” says Richard Delplace, Program Manager Transport Network Operations.

The report also examined supporting literature including domestic research reports and international practices.

Consultation was extensive, consisting of interviews and a survey

of all Australian and New Zealand jurisdictional road managers, the National Heavy Vehicle Regulator (NHVR), local government agencies and industry associations.

Stakeholders supported the project as consistent decision making provides an overall systemic efficiency and enables safety issues regarding heavy vehicle road access to be consistently assessed.

The report is a resource repository for jurisdictions and particularly local government, which generally does not have the same resources as state and territory road managers.

“Local government should find the guidance material, processes and tools very useful, especially as the information is all located in one place,” says Drew Gaynor, Project Lead.

The report recommends that: 1. Jurisdictions review the guidance material, identify any gaps in their assessment practices and consider harmonising practices with other jurisdictions.

2. All relevant guidance tools and supporting documents in this report are placed on the Austroads website and a governance process is developed to ensure their continued currency and relevance.

3. For HVNL regime jurisdictions, separate Restricted Access Vehicle assessment guidelines should be developed for each of

Classes 1, 2 and 3, drawing from road manager tools, NHVR guidance publications and other assessment documents.

4. NHVR, and jurisdictional and local government road managers, investigate developing a network assessment model predominately for Class 2 heavy vehicles, but also for other classes for HVNL regime jurisdictions.

5. In HVNL regime jurisdictions, further research be conducted on how to provide support and resources to assist local government agencies in making informed and efficient decisions on heavy vehicle access.

The report also highlight-

ed potential future work in developing guidelines and further tools that all jurisdictions could use, particularly HVNL jurisdictions.

These guidelines would assist heavy vehicle operators who are seeking consistent and timely decision making with respect to access and compliance across jurisdictions.

Austroads is the collective of the Australian and New Zealand transport agencies, representing all levels of government. It provides high-quality, practical and impartial advice, information, tools and services to help members to deliver efficient, reliable and safe mobility to their customers safetynews.co.nz

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October - January 2020 - 2021

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hile 130,000 businesses are reportedly captured by the Hazardous Substances and Major Hazard Facilities regulations, the official mantra of “600-900 persons seriously harmed each year by unwanted exposure to chemicals in their workplace” presumably applies to all of the country’s 530,000 workplaces.

Downgrading the flawed but effective HSNO Certified Handler requirement has inadvertently undermined an invaluable capability.

The action deprived businesses, particularly SMEs, of an immediate and recognisable source of workplace chemical safety and compliance advice -- a safe chemical handling capability and emergency response knowledge – critical when a chemical incident occurs.

PCBUs and SMEs must now devise their own solutions to ensure employees are competent to safely handle the chemicals with which they work.

So where to from here?

Responsible Care is a global voluntary chemical industry initiative developed autonomously by the chemical industry for the chemical industry.

Chemical suppliers continue to help customers achieve workplace chemical safety aspirations through product stewardship initiatives.

To help solve the in-house chemical compliance dilemma in New Zealand, Responsible Care NZ (www. responsiblecarenz.com) delivers specialist and cost-effective Certified Handler standard training, complete with a certificate.

Internationally, chemical industry leaders are moving away from relying on 52

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Chemical industry leads by example

Sponsored Article

The chemical industry continues to lead by example, helping to ensure essential chemicals encountered at work and at home are safely managed - safeguarding employees, communities and our environment lagging indicators of safety performance in favour of identifying safer work practices and workplaces, by responding to workers’ suggestions about improvements.

WorkSafe NZ has warned against business operators falling victim to uninformed and always expensive ‘consultants’.

Responsible Care NZ site compliance assessments are non-threatening, effectively capturing and assessing chemical safety performance in a variety of workplaces.

Conscientious business operators can add value by sourcing accurate, cost-effective workplace chemical safety advice and compliance tools from their suppliers, industry partners and Responsible Care NZ. The core problem Hundreds of business operators turned out for a free Responsible Care NZ compliance workshop, eager for accurate and practical advice, indicating an unsatisfied demand for assistance and education.

Attendance highlighted the need to provide SMEs and others with the ability to access, correctly interpret and successfully implement complex regulations with clear and concise compliance advice.

Inviting enquirers to “read the regulations” is falling

well short of the industry educational expectations arising from WorkSafe’s Statement of Intent 2016-2020.

A proven strategy is government agencies collaborating with proactive industry associations to best achieve workplace safety aspirations.

The problem is that SMEs rarely join associations.

However they all obtain their chemical requirements from suppliers and can benefit from product stewardship advice and cost-effective industry compliance initiatives.

Responsible Care NZ extols less regulation in favour of enabling business operators to be increasingly self-sufficient, using cost-effective products and services such as site compliance assessments and specialist training.

The focus is keeping people safe around the chemicals we encounter every day, by once again adding value to businesses.

Proven, collaborative and cost-effective initiatives to raise awareness and improve workplace chemical safety performance include: • Joint agency and industry-focused local compliance workshops at times convenient to SME operators.

• WorkSafe NZ inspectors distributing free copies of user-friendly ‘compliance

tools’ such as the Storage of Hazardous Substances HSNO Approved Code of Practice and posters explaining GHS pictogrammes • Supporting industry initiatives such as product stewardship • Referencing industry ‘compliance tools’ • Upskilling workplace inspectors in chemical safety.

• Encouraging ‘no blame’ reporting of incidents • Acknowledging successful, proactive industry compliance initiatives • Restoring the status of Approved Industry Codes of Practice A refreshed and energized government strategy for improving workplace chemical safety is both welcome and essential if we are to significantly improve sub-standard performance and learn from our successes and shortfalls.

Expanding mutually beneficial government- industry partnerships helping business operators ‘do the right thing’ with minimal fuss and expense should be ‘a no brainer’.

Chemical suppliers are ‘Impatient optimists’. They know we can all collectively do better through continuous improvement. +64 4 499 4311 info@responsiblecarenz.com www.responsiblecarenz.com

October - January 2020 - 2021

WALK AND

TALK CHEMICAL

“BEFORE YOU HAVE AN OFFICIAL INSPECTION, GIVE US A CALL FOR AN INFORMAL SITE VISIT”

SAFETY SITE INSPECTION

No worries about penalties – just accurate compliance advice to enable the safe management and handling of hazardous substances and dangerous goods in your workplace.

WE HAVE YOU COVERED!

BE COMPETENT, STAY COMPLIANT

RESPONSIBLE CARE NZ, YOUR ONE-STOP WORKPLACE CHEMICAL SAFETY EXPERTS safetynews.co.nz

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October - January 2020 - 2021

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CC worked with Construction Health and Safety New Zealand (CHASNZ) to come up with a subsidy programme to help small and medium-sized businesses have better access to health and safety training.

Small is defined as starting with an annual wage bill of at least $322,400 and between six and 19 employees. For that you will get a maximum contribution of $350 per company or 50 percent of course costs for the Leadsafe Supervisor or Site Safe Supervisor training courses.

If you have less than six participants, Leadsafe supervisor courses cost $1250 + GST per person for six two-hour online courses at Learningwave.

A two-day classroom leadership programme for SiteSafe followed by

ACC steps up to subsidise construction sector training If your business is working in construction and has six to 99 employees, you might be eligible for a workplace injury prevention subsidy for health and safety training three months to complete an assignment runs from between $285 and $435 + GST per person.

The ACC says the key skills being developed through the subsidised training courses are: • role model the desired

skills, safety attitudes and behaviours required on-site including sub-contractors • develop good communication skills that will enable the participant to have effective safety conversations • positively influence and rectify inappropriate be-

Eligible training course and providers >Leadsafe Supervisor course information on The Learning Wave's website >Sitesafe Supervisor course information on Site Safe's website >Leadsafe Supervisor course information on IMPAC's website >Leadsafe Supervisor course information on Besafe Training's website >To check if you're eligible Log into MyACC for Business 54

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haviours • effectively use the safety tools and systems such as hazard management, risk identification and assessment, and incident investigations to get better work outcomes • clearly understand roles and responsibilities as a safety leader and be proactively involved in the management of safety onsite, every day • proactively assess safety risk and drive safe attitudes and working methods.

October - January 2020 - 2021

Health and safety subsidies In collaboration with the Health and Safety Association of New Zealand (HASANZ), ACC will provide subsidies to help small and medium-sized businesses access specialist health and safety (H&S) advice

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here are two subsidies available – a residential construction subsidy and a manufacturing sector subsidy.

The intent of this subsidy is to drive action through an action plan or a specific improvement activity.

It does not subsidy doesn't cover the cost of an H&S audit or assessment For both sectors ACC will pay up to 50 percent of the fee up to a maximum of $500 for small business (6-49 employees with a payroll minimum of $373,000 a year) and $750 for a medium size business (50 to 99 employees with a payroll minimum of $3.051 million a year).

Indicative pricing for HASANZ professional $100$200 per hour.

On construction sites the subsidy is available to support businesses in developing an H&S action plan or improvement activity targeted at working in and around vehicles - including moving equipment and plant - on a construction site and/or falls from heights.

An action plan is a documented list of objectives, activities, tasks, timelines, responsibilities and other information that outlines how you will address the risks associated with working in and around vehicles and falls from heights in a workplace.

An improvement activity is the actions and/or tasks that have been implemented to address a gap or improve the overall health

and safety of a workplace.

This subsidy is available to residential construction businesses in the following subsectors: • residential building construction • land development and site preparation • building structure services • building installation services • building completion services • other construction services For the manufacturing sector, the workplace injury prevention subsidy for H&S advisory services can help pay for an H&S action plan or improvement activity, undertaken or signed off by a HASANZ-registered adviser.

The action plan or improvement activity must be

in the areas of leadership, worker engagement or risk management.

The action plan should respond to the question: What are we going to do to have better health and safety in this workplace?

An action plan is a documented list of objectives, activities, tasks, timelines, responsibilities and other information that outlines how you’ll address an H&S gap or improve the overall H&S of a workplace.

An improvement activity should respond to the question: What has the health and safety consultant helped us to put in place to improve the health and safety of our workplace?

In order to understand the H&S needs of your business, a good first step towards preparing an effective action plan a good

place to start is with an H&S assessment.

ACC recommends your business completes an online SafePlus assessment before you engage an H&S adviser from HASANZ. SafePlus is a free, online self-assessment tool, that aims to support H&S improvements for small and medium-sized businesses.

It is WorkSafe endorsed, is a simple way to get feedback from people in all parts of your business and provides guidance on the H&S improvement priorities identified by the assessment.

Key links: HASANZ HASANZ Register ACC residential construction subsidy ACC manufacturing subsidy Safeplus safetynews.co.nz

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With your support we can continue to provide practical help, care and comfort.

Accommodation and home visits are just two of the ways we support New Zealanders affected by cancer.

Visit cancer.org.nz to find ways to make a difference by volunteering, donating or taking part in our events.

October - January 2020 - 2021

OCTOBER - JANUARY 2020-2021

SPLASHING BILLIONS ON SHOVEL-READY PROJECTS

How Artificial Intelligence can solve water shortages

$55 billion still not enough to get transport moving infrastructurenews.co.nz

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August - September 2020

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propertyandbuild.com

October - January 2020 - 2021

How to operate in a post-RMA environment Achieving outcomes has become the great new aspiration of public policy says Infrastructure New Zealand Policy Director Hamish Glenn

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utcomes are neither new nor different than things we’ve always wanted – higher incomes, cleaner environment, longer, healthier and more meaningful lives, to name a few.

However, in recent decades we have purposefully de-emphasised outcomes in public policy, prioritising instead efficient and fair market mechanisms on the basis that these will allow individuals and groups to promote their own outcomes.

But there can be no doubt that the kind of outcomes we expected have not been produced.

We know our incomes are comparatively low and

productivity (the thing which ultimately delivers high incomes) has been falling relative to our peers.

We know our environmental performance, as measured by reductions in biodiversity and water quality, has also been poor.

Inequality has worsened, with particularly large and growing wealth disparities between generations and between Maori and Pasifika communities and other New Zealanders.

So when we talk about a newfound commitment to “outcomes”, what we really mean is that the country is undergoing a change in how we value different outcomes. Smaller government and fiscal discipline are out,

big public objectives like addressing poverty, tackling climate change and growing the regions are in.

How do you achieve outcomes?

Achieving the new outcomes will require a different approach. Most obviously, we’re going to need to work out what we want to achieve in the first place.

1. Set the vision and identify the outcomes This process can be as hard as we want to make it.

Government has a multiplicity of things it needs to promote. Individuals, organisations and various communities have more still.

A vision is needed to

define the highest order priorities and guide decision making down through the system.

Outcomes are what give effect to the vision. In New Zealand we identify four: economic, social, environmental and cultural.

These broadly relate to the monetary value of what we do, who we are, where everything takes place and, with a slightly unique New Zealand twist, we add a fourth which recognises that the priorities of the majority may not be the priorities of the minority, most notably Māori.

A fifth outcome often gets overlooked, but is implicit in the formation of every law in the country – democrainfrastructurenews.co.nz

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October - January 2020 - 2021 cy. It speaks to the “how?”

Good process which enhances participation, leverages societal knowledge and creates feelings of inclusion, being valued and being heard is also an outcome.

How far we drill down into each general outcome is a matter for an army of civil servants. Is growing GDP what we mean by an economic outcome, or GDP per capita? Is it productivity, maximum employment or discretionary income? Is it all, something else or more?

2. Define success In the second phase we work out what defines success across each outcome.

These are the objectives and targets.

If one outcome is a healthy natural environment, we need to understand what this means in practice? It probably means protecting biodiversity and cleaning up freshwater. It no doubt also means that we get our carbon emissions down. Eventually we will need a list of all the elements which satisfactorily represent a “healthy natural environment”.

With respect to carbon, we arguably already know what success looks like – meeting our Paris carbon commitment. That means we need to reduce our greenhouse gas emissions by 30 per cent below 2005 levels by 2030.

3. Plan the path which achieves the objectives In the next stage, we need to work out how we do that. This is the make or break point, but the one which differentiates a model based on achieving outcomes from one based on managing effects.

This is the plan.

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industry or residential? Will we use prices or investment, regulation or persuasion? Who will be in charge of what, how much money do they need, when do they need it and how will they be held to account?

Any objective which cannot be broken down into constituent parts to understand what success looks like is probably not an objective.

Whether carbon, the economy, health or something else, there are real world metrics and proxies which, when collectively achieved, mean we are doing what we said we would.

The purpose of the plan is to be clear about what they are and how we are going to implement them.

4. Oversee performance The final phase of the process is to monitor performance to make sure we are achieving what we said we would. That means making sure that the parties responsible for implementing some part of the plan do in fact implement their part on time and in accor-

dance with the plan.

If there are investments to be made, they must be made. If there are regulations to enforce or remove, they must be enforced and removed. When communities and stakeholders need to be engaged, they must be engaged. Otherwise the plan is not worth the paper it is printed on.

Aren’t we doing this already?

None of this new or revolutionary to your average policy analyst. In fact, just about every central and local government organisation has one, two, three or more such strategic policy documents and processes running more or less along this exact line, guiding them towards agreed outcomes for their sector.

In health there is the New Zealand Health Strategy. In transport there is the Government Policy Statement and its network of supporting documents.

But we are clearly not achieving the outcomes we want.

Why are we not achieving outcomes?

The reason is that, while our strategic plans may be up to the task, the framework to implement them is not.

Money is not allocated based on achieving outcomes, but on maintaining fiscal prudence. We had, right up until COVID, achieved that objective with five gold stars.

Our Public Finance Act is not geared for achieving non-fiscal outcomes.

Where resourcing is made available, it is usually for specified activities. Outcomes are not specific, they require collaboration across multiple parties – different government departments, central and local government, the private sector.

Each has played to their own tune, managing their own empire efficiently, but not necessarily in a way which promotes outcomes.

This this why the Government has just repealed the State Sector Act 1988. But the new Public Service Legislation Bill doesn’t address

October - January 2020 - 2021 misalignment with local government nor the private sector.

When outcomes require new infrastructure or other capital investment, it must pass through the infamous Resource Management Act. It is an “effects-based” statute – the diametric opposite of the outcomes approach – and is notorious for elevating local impacts above wider public outcomes, slowing and in some cases thwarting policy priorities.

Even if all the stars align to this point, the capacity and capability of organisations to implement can leave outcomes abandoned at the last hurdle. New Zealand has 78 local authorities playing a critical role in everything from infrastructure to planning to community advocacy, but many are too small to perform the tasks set before them.

Permeating all decisions and activities we have democratic processes designed to improve the final out-

come, but which also add time and cost. There will always be those in a system who have benefitted from policy failure and are incentivised to stop progress. If they can slow the process down beyond three years, they might be able to stop it. Time constraints amplify challenges and barriers in the system, making it harder to deliver outcomes.

The end result is a system which has lost faith in itself to deliver.

What we end up doing is taking outcomes, where we do take the time to identify them in the first place, and simply overlaying them onto existing policy. We then match what we’re already doing to the outcomes, satisfy ourselves that what we’re doing aligns with what we want to achieve and then pat ourselves on the back for promoting outcomes.

This is not outcomes achievement. It is reverse engineering policies to

make ourselves feel like we’re on the right track and it is contributing to the problem.

What we still have to do If New Zealand is serious about achieving outcomes different to those which we have been achieving, we must change three things.

We must change the way we plan. Planning needs to move into the heart of governance, not sit to the side as one of many activities. The plan is the means by which we achieve the outcomes. It must guide spending and debt, determine the timing and sequencing of investment, shape land use plans and keep all parts of the public sector on the same page.The RMA needs to be replaced with an environmental protection Act which sets bottom lines and protects the environment, and a strategic planning act which translates national outcomes into investments,

land use rules and effective delivery.

We must change the way we fund public policy. We cannot regulate for outcomes – they need resources. If something is worth prioritising as an outcome then it is worth funding to achieve that outcome. Money must start to follow the plan in the same way that the plan follows the outcomes.Every true outcome creates value for someone.

Our tax system need to evolve so that beneficiaries help fund outcomes. New tools and mechanisms are required to tie outcomes investment to future beneficiaries, providing the capital every investment needs.

We must change our governance arrangements.

Central government needs to focus more on monitoring, oversight and ensuring that all parts of the system are functioning. It can’t do that objectively as long as it is also delivering services.

But in order for anyone else to deliver successfully, they will need the right scale and mandate to do so.We need to build up regional governance so that regions based around a common economic geography have the ability to implement national outcomes and the government has the ability to hold them to account.

Hamish Glenn Policy Director Infrastructure New Zealand infrastructurenews.co.nz

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Not a drop to spare Auckland’s water shortage has been exacerbated by a lack of investment in technology, NZTech chief executive Graeme Muller says.

Auckland’s drought and subsequent water restrictions is the most severe the country has seen in nearly 30 years. Water sustainability is top of mind for much of New Zealand, Muller says.

“Without doubt, there are environmental factors at play but factors contributing to water sustainability also extend to the infrastructure including better use of technology.

“Many areas are still relying on manual and infrequent meter read processes and it leads to understandable difficulties in determining where, and how much water leakage is occurring within the water networks.

“Technologies such as the Internet of Things, or IOT, can enable much more accurate measurement using smart meters that constantly measure and report water usage.

“The data from smart meters informs customers so they can better manage their water usage and helps water companies identifying issues such as leaks in the system.

“IoT technologies combined with artificial intelligence can also be used to monitor for potential issues and trouble shoot problems before they arise by guiding maintenance to the areas most needed.

“New Zealand is not alone in experiencing these issues however, and we’re starting to see examples from abroad and across the Tasman that are using IoT to innovate and improve water sustainability.

“Councils and government bodies across Aotearoa are looking for solutions that include end-to-end monitoring across usage, leakage, pressure, flow, level-sense, and quality of water.

“With adoption stages here varying from initial proof of concepts to full requests for proposals, there is still plenty of room for innovation and IoT deployment to help create a more sustainable New Zealand.

“Some good examples of companies providing sensors for helping manage water and water quality include Riverwatch Water Tester in the Wairarapa, Waterforce in Canterbury and IoT Ventures in Auckland.

“The issue is not whether this technology works or whether it should be used, but why isn’t it being deployed faster? Muller says.

Graeme Muller +64 21 0252 0767

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The digital revolution taking place in the water sector Artificial Intelligence (AI) is a key technology in the digitalisation of water utilities, according to a paper written by a team at the International Water Association

D

igitalisation of the water sector is much discussed, it is not always fully understood says Professor Dragan Savic, Chief Executive of KWR Water Research Institute Chair – IWA Digital Water Programme Steering Committee.

To counter this, the International Water Association (IWA) Digital Water Programme has initiated a series of White Papers to help utilities, water professionals and those interested in water management and stewardship issues to better understand the opportunities of digital technologies.

This paper in the series focuses on Artificial Intelligence (AI) providing several example applications and case studies of such technologies in the water industry. The intention is to offer concrete, clear examples of AI-based solutions in

language that is accessible to a much wider audience AI can support areas such as real time monitoring, predictive maintenance, process control, and forecasting, the paper asserts.

The paper includes a range of case studies.

“These examples and more demonstrate not only the power of AI, but also that water management practice is already benefiting from the developments in AI and Machine Learning,” says Professor Savic.

“We must ensure we understand those technologies well and that they keep improving our lives in the future,” says Kalanithy Vairavamoorthy Executive Director of the IWA. The water sector is increasingly embracing digitalisation in responding to customers’ needs, ensuring compliance with

regulations, improving performance, and ensuring efficient and reliable services.

“At the same time, increasing global change pressures such as urbanisation and climate change mean the water sector will experience difficulties in efficiently managing scarcer and less reliable water resources,” he says..

In order to meet these challenges, there is a need for a fundamental change in the way we manage water, based on key concepts including: interventions over the entire urban water cycle; reconsideration of the way water is used (and reused); and greater application of natural systems for water and wastewater treatment.

“The aim of this white paper focuses on presenting AI based solutions for the water sector. The aim is

to introduce readers to tangible solutions (rather than technologies) that were developed to address specific challenges in real-life water systems.

“We hope that by using applied examples, the topic of AI and its applications in the water industry will be made clearer to a wider group of interested readers,” says Vairavamoorthy.

The examples shown here were selected to demonstrate that AI-based solutions can address real challenges and provide tangible benefits to the water sector.

Event detection systems Real-time detection of pipe bursts in water distribution networks leakage is a major issue in water distribution systems worldwide.

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October - January 2020 - 2021 processing pressure and flow sensor signals in near real-time to forecast the signal values for the near future). These are then compared with incoming observations to collect different forms of evidence about the failure event taking place.

The evidence is used to estimate the likelihood of the event occurrence and raise corresponding alarms.

The system effectively learns from historical burst and other events to predict the future.

Elements of the detection system, developed initially as part of a research project, were built into a commercial Event Detection System (EDS).

Real-Time Analysis of a Specific Alarm EDS has been in use by a large UK water company since 2015. It processes data from over 7,000 pressure and flow sensors every 15 minutes. This enables EDS to detect pipe bursts and related leaks in a timely and reliable mannershortly after their occurrence and

with high true and low false alarm rates.

In addition to detection, EDS can proactively prevent burst events by detecting equipment failures that often precede these events.

EDS does not make use of a hydraulic or any other simulation model of the analysed water distribution network - it works solely by extracting useful information from sensor signals where bursts and other events leave imprints - deviations from normal pressure and flows signals.

This makes the EDS robust and scalable as it enables data to be processed in near real-time.

It and has resulted in major operational cost savings, significantly reduced customer supply minutes lost, reduced leakage and several other benefits.

Automated asset condition assessment The inspection of sewer systems’ pipes is important as undetected structural and other faults such as displaced joints, cracks may

result in severe pollution and/or flooding incidents.

This inspection is done usually by recording CCTV videos and then analysing these manually which is time consuming, costly and rather subjective and inconsistent in nature making it not necessarily always reliable.

The AI-based solution automates the process of analysing CCTV videos and detection of faults in pipes using computer vision and machine learning methods.

Image processing is conducted first to process and convert the CCTV images into suitable data.

This data is used then to detect faults with a help of a Random Forest machine learning method. This method is trained before it is used on a number of pre-labelled CCTV images.

The automated detection works similarly to the human face recognition system although the task of fault detection is probably more complex in sewers due too many different types of faults that exist

EDS Screenshot with Real-Time Analysis of a Specific Alarm

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and that can manifest themselves in very different ways in CCTV images. The solution was successfully tested and validated on unseen real CCTV data from several water companies in the UK, Finland and Australia. It has a high true detection rate accompanied with low false alarms rate.

This technology is currently being commercialised in collaboration with the UK water company.

Predictive wastewater treatment plant control Royal Haskoning DHV’s Aquasuite® software was deployed at PUB Singapore’s Integrated Validation Plant at Ulu Pandan Water Reclamation Plant in March 2019 to provide operators and managers with predictive insights while improving plant performance.

Aquasuite PURE collects real-time data on the plant’s flows and qualitative measurements, including those for ammonia, nitrates and offers a dashboard view of flow levels and predicted outcomes of oxygen, phosphates and dry solids to build an historical database.

The software then makes use of advanced analytics and Machine Learning algorithms to predict the plant’s wastewater flows and loads, oxygen needs, chemical dosing needs, and other requirements.

The system controls key treatment processes, automatically optimising them in real-time based on its predictions and the plant’s historical performance.

It further detects anomalies in the plant’s processes through quantile regression techniques based on multiple measurements. Prediction accuracy of the influent flow increases over time as the software is learning, reaching a prediction accu-

October - January 2020 - 2021 Dashboard view of Aquasuite Pure (left) and flow level and predicted outcomes (right)

racy of 88 percent after just one month.

Connecting to the plant’s Supervisory Control and Data Acquisition (SCADA) system to gather data and control key processes, data is sent to the Aquasuite cloud solution.

With the data collected in near real time in the cloud, the software tracks the actual performance of the on premise solution through a digital twin, a digital replica of a physical system.

Results show that Aquasuite learns and predicts operations several days ahead and it can function as an autopilot, able to perform unattended operation.

Preliminary results show a reduced aeration flow of up to 15 percent with predictive control, resulting in corresponding energy savings.

Smart Alarms for Proactive Wastewater Network Management Aquasuite FLOW is an AI powered predictive analytics tool for wastewater networks that enables prediction and early warning of critically high-water levels in sewers, potential pollution events, and detection of anomalous levels that could indicate blockages in

the network.

Water utilities are most at risk for blockages during rainfall events, in part because of sewer flooding, capacity limitations, and foreign objects. Aquasuite uses AI to detect when high level flows in sewers exceed critical levels or are not consistent with the expected flows.

Using AI in this context drastically reduces false alarms and prioritises the remaining alarms to accurately and efficiently manage blockages through

early detection and real-time response, preventing further problems like fatbergs.

Monitors located strategically around the catchment collect flow and level data.

That data is transmitted to a secure, reliable Aquasuite cloud platform that displays the information in easy to use dashboards and reports for analysis. Using smart algorithms, real time data, historical data sets and information from other sources such as rainfall, data are translated into actionable

insights for operators.

Real-time forecasting of sea currents Over the past few decades ANNs have evolved in a popular approximation and forecasting tool, frequently used in a range of problems and application areas. In this solution, a recurrent ANN is used to create a real-time hybrid data assimilation system resulting in extremely accurate forecasts of sea surface currents.

This solution was de-

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October - January 2020 - 2021 veloped to support the construction of Øresund Link connecting Danish capital Copenhagen and y of Malmø in Sweden The combined roadway and rail line bridge run nearly 8km where it then transitions into an underwater tunnel for the remaining 3.5km.

Due to the material of the sea floor, a tunnel was not possible. Instead, engineers chose to sink and connect 20 prefabricated reinforced concrete segments.

The elements were prefabricated in a purpose-built facility, sealed shut and using a specially designed barge along with seven tugboats, lowered into place at required accuracy of alignment of 2.5 cm.

The towing operation for each element could be conducted within a “window of opportunity” of 36 hours during which sea surface currents had to be guaranteed to be less than 0.75 m/s.

Despite extremely challenging conditions, all 20 elements of the Øresund link’s tunnel were successfully placed at their positions between August 11, 1997, and January 6, 1999 - 20 towing operations in 17 months.

The accurate ANN-based forecasting of seal surface currents is thought to be one of the key factors in this achievement.

Bayesian networks for proactive asset management The economic and social costs associated with pipe bursts and leakage in modern water supply systems are rising to unacceptably high levels. The challenge for the decision maker is to determine what pipes in the network to rehabilitate, by which rehabilitation method and at what time within the 66

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planning horizon.

Advanced AI, machine learning and statistical methods are used in order to establish risks of pipe bursts.

For example, analysis of the database of already occurred burst events can be used to learn a risk model as a function of associated characteristics of bursting pipe (its age, diameter, material of which it is built, etc.), soil type in which a pipe is laid, climatological factors (such as temperature), traffic loading etc.

In this context, a machine learning model based on Bayesian Network is used to predict which pipes are most vulnerable to failure including a metric for failure probability .

Pilot projects using the approach have been conducted in Stockholm, Singapore, UK and Denmark.

Computer vision for opportunistic rainfall monitoring The quantity and quality of precipitation data are crucial in meteorological and water resource management applications.

Rain gauges are a classic

approach to measuring rainfall. However, as we enter the age of the Internet of Things in which “anything may become data” socalled opportunistic sensing using unconventional data sources offer a promise to enhance the spatiotemporal representation of existing observation networks.

One particular area attracting attention is the estimation of quantitative and analytical rainfall intensity from video feeds acquired by smart phones or CCTV surveillance cameras.

Technological advances in image processing and computer vision enable extraction of diverse features, including identification of rain streaks enabling estimation of the instantaneous rainfall intensity.

Recent AI and machine learning approaches rely on the use of autoencoders, deep learning and convolutional neural networks to address the problems.

Companies such as WaterView (Italy), Hydroinformatics Institute (Singapore), as well as universities (Southern University of Science and Technology China, Shenzhen) have

proposed and implemented practical approaches to weather hazards in energy, automotive and smart cities application domains.

This is an abstract of the White Paper on AI for information purposes. We recommend you read the complete report.

For further information about the AI-based solutions presented in this paper please contact Professor Zoran Kapelan z.kapelan@delft.nl www.iwa-network.org Authors Zoran Kapelan Delft University of Technology, Department of Water Management, The Netherlands Emma Weisbord Digital Water Consultancy, Royal Haskoning DHV, The Netherlands Vladan Babovic National University Singapore, Department of Civil and Environmental Engineering, Singapore Digital Water Artificial Intelligence Solutions for the Water Sector 4 Digital Water

A hint at I rewards for Covid-19 diligence New Zealand, Singapore and Korea fared well in the latest Cap Rate Survey by CBRE Asia Pacific Henry Chin, Ph.D. Head of Research Asia Pacific & Global Head of Investor Thought Leadership henry.chin@cbre.com.hk

nvestment enquiries in all three countries are improving while in several markets up to 40 percent of enquiries are from cross border investors.

That said, nearly 80 percent of those who responded to the survey do not expect to be reaching anywhere near pre- pandemic level before the second half of next year.

Cap rate ranges narrowed with support from low borrowing costs in the Asia Pacific Region. I\Despite what CBRE quaintly lists as “a mismatch between buyers and sellers� price expectations, buyers appear willing tol pay more for logistics assets while sellers are increasingly willing to discount prices for decentralized offices and shopping malls. Hotel prices have fallen by up to 30 percent since 2019 and

October - January 2020 - 2021 lenders continue to take a cautious stance towards the sector.

CBRE says cap rate ranges are best estimates provided by CBRE professionals based on recent trades in their respective markets, as well as communications with investors.

The ranges represent the cap rates at which a given asset is likely to trade in the current market.

Cap rates within each subtype will vary, occasionally falling outside the stated ranges, based on asset location, quality and property-specific opportunities for net operating income (NOI enhancement, the company notes.

Capital markets respondents provided NOI yield without leverage while Valuation & Advisory Services respondents provide the capitalisation rate (net).

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Why $55 billion is not enough for transport The newly released Government Policy Statement (GPS) on land transport saw a welcome increase in transport funding, but more needs to be done to get New Zealand’s transport up to standard

T

he role of the GPS is to outline the government’s land transport strategies over the next 10 years, and to influence decisions on fund allocation. It is reviewed every 3 years.

The latest GPS released on 17 September 2020, has set new benchmark for investment, committing $55 billion to land transport. It has four strategic priorities to guide investments.

These are Safety, Better Travel Options, Improving Freight Connections, and Climate Change.

This investment will mean an average of $4.8 billion allocated to Waka Kotahi, the NZ Transport Agency, each year. Combined with other initiatives – including the

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October - January 2020 - 2021 NZ Upgrade Programme which invests $6.8 billion in transport – this creates a new record for transport investment in New Zealand. $500 million will be allocated to improve state highways, and the rail network will also receive funding.

Policy Director at Infrastructure New Zealand, Hamish Glenn supports the Government’s investment.

However, he has concerns about the ability of the GPS to achieve its desired outcomes.

“Missing from this GPS are several key initiatives necessary to not just promote outcomes, but achieve them,” says Glenn.

“The next Government will need to fully mobilise transport planning, funding and investment if New Zealand is to achieve, rather than just promote, transport outcomes,” he says.

Although Climate Change is one of the strategic priorities of the GPS, Glenn is sceptical about its environmental outcomes.

“This GPS could, and arguably should, have signalled Government intentions to ‘flip the fleet’, support new transport energy infrastructure and rapidly expand electric and other renewably-powered vehicles.

“Transport remains New Zealand’s best opportunity to reduce carbon emissions and doesn’t need to just do its part, but must compensate for sectors like agriculture where renewable technologies are not yet mature,” he says.

Civil Contractors New Zealand Chief Executive, Peter Silcock also has his concerns about the GPS. “The increase in maintenance funding is a step in the right direction. Although it will not be enough to fully address decades of un-

The four strategic priorities of the GPS

derinvestment in transport maintenance, it will provide employment for New Zealanders and the benefits of the improvements made will be felt by communities for many years,” Silcock says.

Although the investment may seem like a large amount of money, Silcock believes that more may be needed to get roads up to standard. Underinvestment in road maintenance has caused them to deteriorate quickly, and it will take more effort than usual to repair them.

“To achieve safe, well-maintained roads we need a large initial investment to get the network back up to scratch, and then a level of funding that allows for the impacts

of more frequent severe weather events and population growth.

“This is about getting our roads back to the standard they should be in. Over the past decade, successive GPS have required Waka Kotahi to underinvest in maintenance and that has certainly impacted on safety outcomes. Road users have noticed the difference,” he says.

Glenn believes that additional borrowing is needed to improve the GPS. “Billions of dollars of real estate value is being created through investment in high quality rapid transit, but our willingness to ask beneficiaries to contribute remains disappointing,” Glenn says.

“An open mind to alterna-

tive financing is welcome, but with just $1.5 billion of debt against $4.5 billion of annual revenue, there is wide scope for Waka Kotahi to borrow more.

“A small amount of additional borrowing would be sufficient to address maintenance backlogs on both road and rail networks, improving reliability and safety,” he says.

So, while the GPS is a promising start, more needs to be done to get our transport up to standard.

“This GPS is a major step forward, but if the Government is serious about actually achieving, rather than just promoting, strategic transport priorities it is going to have to employ the full range of tools at its disposal,” Glenn says. infrastructurenews.co.nz

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