Best Practices for RICS Awards China 2018: The Winning Projects and Teams

Best Practices for

RICS Awards China 2018 Winning Projects and Teams

rics.org

Best Practices for RICS Awards China 2018 Winning Projects and Teams

Message from Managing Director of RICS in Greater China Aimed at celebrating outstanding achievement across a broad spectrum of the built environment in China, we launched the RICS Awards China in 2017. This is the highest accolades bestowed by a globally renowned professional body.

Since its launch, we have received overwhelming response across the nation in terms of both quality and quantity. We also see increasingly fierce competition amongst our submissions. This has prompted us to produce this Best Practices guidebook to facilitate sharing of good practices and knowledge by our winners.

Not only does this guidebook showcase outstanding achievements and successes in our industry, but more importantly, it encourages constructive competition, allowing industry players to ascend hand in hand.

We take this opportunity to thank all companies and teams for putting their best work forward. Year after year they have continuously excelled themselves.

Our gratitude also goes to our jurors for not just reviewing all submissions, but also making difficult decisions choosing the winners. We together witness the exponential development of the built environment in China.

Last but not the least, we look forward to your participation, and inclusion of your winning work in the years to come.

Pierpaolo Franco Managing Director of Greater China, RICS

Comments from Jury Panel of the RICS Awards China 2018 The RICS Awards China 2018 received widespread attention and an enthusiastic response from the industry. There were nearly 100 applications for awards across all categories, twice that of the previous year.

This year’s applicants are all leading companies from different sectors of the industry, including world-famous international consultants, outstanding local design companies, management consultants, and research institutes, as well and renowned contractors, developers and investment funds. Some are team nominations while others are project nominations; they are all testament to the efforts of the talented professionals behind each successful project.

Special attention goes to the 17 winners of awards this year. Their excellent results reflect the industry’s development in recent years, with emphasis on quality, collaboration, creativity and sustainability. Through their work, these winners promote the professional code of practice and spirit which RICS has always advocated. These outstanding representatives from China’s real estate and construction industries provide us with remarkable examples to learn from, and a target for others to aim for and surpass.

高世斌 Gao Shibi Head Juror of the Jury Panel of the RICS Awards China 2018

Best Practices for RICS Awards China 2018 Winning Projects and Teams

4

RICS Awards China 2018 Winner List

PROFESSIONAL CONSULTANCY SERVICE TEAM – CONSTRUCTION

COMMERCIAL PROJECT

Arcadis

Arcadis

East China Architectural Design & Research Institute

P6 P 10

PROFESSIONAL CONSULTANCY SERVICE TEAM – REAL ESTATE

RESIDENTIAL PROJECT

JLL

Shui On Land for Lakeville Luxe, Shanghai

P 15

RESEARCH TEAM Cushman & Wakefield

P 37

P 41

BEST DEAL P 15

FACILITY MANAGEMENT TEAM

JLL

P 45

CBRE

P 48

BEST BIM APPLICATION

Cushman & Wakefield

P 16

GT Land Plaza

P 21

REGENERATION TEAM

JCM International Engineering Technology Co. Ltd and P 52 China Electric Power Research Institute P 56 CES INVESTMENT

SUSTAINABILITY ACHIEVEMENT

Arcadis

P 25

COFCO

P 60

COFCO

P 28

Arcplus Group

P 64

CONSTRUCTION PROJECT Arcadis

P 32

5

Best Practices for RICS Awards China 2018 Winning Projects and Teams

RICS Awards China 2018

PROFESSIONAL CONSULTANCY SERVICE TEAM – CONSTRUCTION

Winner

Arcadis

How accomplished is Arcadis, a market leader in China’s quantity surveying industry?

From laggard to leader?

History of the quantity surveying industry in china Quantity surveying is a terminology that originated in Britain. Quantity surveyors are responsible for cost and contract management during construction, and are called accountants and solicitors of the real estate and construction industries. Quantity surveying is a professional service that deeply integrates accounting and legal knowledge with architectural planning, design and construction work. The profession has a short history in the Chinese market as there was almost no demand for engineering consultancy under the planned economy in the days before the implementation of the reform and opening up policy when the construction industry adopted a fixed pricing system. With the reform and opening up policy in place, the planned economy was replaced by a market economy, construction and real estate projects needed to be completed in the most efficient manner with the highest price-performance ratio, which created an opportunity for quantity surveying to develop.

As the Chinese economy has developed rapidly, the government has continued to invest in major infrastructure projects throughout the country in recent years, such as high-end airports, and high-speed rail, and shopping malls have mushroomed. This has boosted the prospects of engineering consultancies. However, different from their sophisticated Western counterpart, the Mainland quantity surveying industry has its own unique characteristics.

Firstly, in terms of business model, influenced by the central economic planning of the past, the conventional fixed price system is still being used in many state-owned companies and by state-owned assets today. Instead of full marketization, they merely follow market prices so further development and evolution are needed. Secondly, compared with the West, China’s infrastructure building frenzy has brought about projects of a greater scale, higher complexity and tighter timeframe, fueling demand for manpower and expertise. Looking at this from a different angle, this trend is also driving the rapid development of the quantity surveying industry in China.

6

Forerunner arcadis is the leader in the quantity surveying industry in china

independent judgments, this is where the professional values of the quantity surveying industry lies – all these were manifested in the three Arcadis projects. The firm helped the owner control the final cost to within the budget through its excellent professional skills and

Early entry into the China market: Arcadis is the engineering

leveraging its strong data bank.

consultant for the first batch of projects launched after implementation of the reform and opening up policy. Arcadis set up its first office in Shanghai in 1993. Today, it has offices in 22 major Mainland cities with footprints all over the country. With ample experiences and expertise in design, consultancy, cost and project management in various fields, including environment, water, infrastructure and architecture, Arcadis strives to achieve the highest quality and sustainable results for its customers. It provides professional services to all kinds of construction projects, such as residential, commercial, industrial, education, healthcare, hotels, leisure and entertainment.

Iconic projects: In the last 25 years, Arcadis has endeavoured to promote professionalism in the Chinese quantity surveying services and provided full-course cost consultancy and contract management

HKRI Taikoo Hui is situated in the commercial zone of Nanjing Road

for many real estate and infrastructure projects. Among the

(W), Jing'an District of Shanghai and adjacent to three subway

numerous projects Arcadis has completed are almost all the iconic

routes; it is one of the city’s iconic commercial complex development

structures in major Mainland cities. They include, but are not limited

projects in 2017. The project has a complex design, great variety

to, the CMG Headquarters (formerly CCTV Tower) in Beijing, Terminal 3

of works, and more than 100 work and supplier contracts, as the

at Beijing Capital International Airport, Shanghai IFC, Shanghai World

cost consulting partner, Arcadis leveraged its past experiences and

Financial Center, Jin Mao Tower, Plaza 66 in Shanghai, Shanghai

expertise and advised the owner to adopt the mix contract model

Disney Resort and Kerry Centre.

of main contractor + professional sub-contracts to ensure that the construction works were completed on time and met the required

2017 witnessed the completion of many key projects for which

quality standards under management of the main contractor. It

Arcadis provided quantity surveying services. In the RICS Awards

also advised the owner to adopt the internationally applicable FIDIC

China 2018, Arcadis was the winner of Professional Consultancy

contract terms and spent a lot of time studying the terms exclusive

Service Team of the Year — Construction for the HKRI Taikoo Hui

to the contracts. Besides integrating domestic laws, regulations

(Dazhongli), Shanghai Magnolia Plaza and Raffles City in Changning

and specifications, Arcadis also drew up a clear division of the task

District of Shanghai projects. Gao Shibin, head juror of the jury

interface between the owner, main contractor and sub-contractors

said: “The three projects are large-scale downtown commercial

through close communication with the owner and design consultant,

complexes adjacent to or above a subway station. They also involve

which effectively mitigated disputes arising from confusion of

the preservation and refurbishment of historic buildings, there were

responsibilities, thus minimizing the compensation risks the owner

significant challenges in overall planning and design, cost control,

might be exposed to.Shanghai Magnolia Plaza, located north of the

contract procurement and management and monitoring of work progress. As a quantity surveying service provider, Arcadis ensured successful completion of the projects with its highly professional services, by fully understanding the customers’ needs and project characteristics and applying the international contract procurement model, innovative smart information and quality management systems.”

Multiple challenges highlight firm’s professional values Creating a win-win situation for Parties A and B with professional and

7

Best Practices for RICS Awards China 2018 Winning Projects and Teams

Bund in Shanghai, is a massive skyscraper complex comprising a 5-star hotel, a smart Grade A office tower and mixed-use buildings.

It includes one 66-storey office tower (320 meters), one 39-storey

Technological innovation boosts efficiency with less effort

W Hotel (172 meters) and a 6-storey exhibition hall (57 meters) with podium buildings. Construction of the complex was disrupted

The construction industry may be slower than other industries in

by suspension, catch-up work and delay; there were also major

adopting new technology, but technological innovation as a tool that

amendments to the work plan (the foundation pit excavation method

makes work more efficient has boosted the effectiveness of project

was changed from the original large pit excavation to separate

management.

pit excavation). When the main contractor made a large claim for compensation, Arcadis advised the owner of an appropriate

In the HKRI Taikoo Hui project, management of contract amendments

compensation amount based on the contract terms, contract

was a challenge due to the large number of contracts and

quotation method and actual work progress. It also assisted the

design consultants. Arcadis tackled the issue with the eAIA (work

owner in business negotiations and helped the parties involved

instructions management system) which is unique to the project.

reached a consensus with a supplemental agreement drafted by

All team members could access the large shared management

Arcadis and signed by the owner and contractor.

platform anytime and from anywhere. Each work instruction must have approval from the design consultant, quantity surveyor and all relevant departments of the owner in the system (work flow) before distributing to the contractors. This ensured the confidentiality of all work instructions and optimized the efficiency of document management and circulation.

Raffles City is situated at the heart of the city in Shanghai, the site was formerly occupied by St. Mary's Hall, the alma mater of author Zhang Ailing. It includes three office towers, a podium shopping mall and five heritage blocks restored from the former site of St. Mary’s School. Line 2 (already in operation) of the Shanghai Metro passes under the site, dividing it into two separate sections, east and west.

Taking into consideration the difficulties in the construction, a

Two main contractors were responsible for the construction, which

number of innovative technologies and uncommon materials were

made it a more complicated project than a project with contract

used. For example, Plot 46 was right on top of the superstructure of

management, cost control, work schedule management, quality

Metro Line 2, so strict requirements were set for structural safety,

management, work safety and project coordination all undertaken

and there were stringent shock-proof and noise-proof specifications

by one main contractor. In order to overcome the difficulties and

for the new superstructures and tunnels of subways. Furthermore, a

mitigate the risks encountered, Arcadis provided the owner with

100-year-old building weighing 3,300 tonnes had to be uplifted for

professional opinions on carefully-considered contract drafting,

relocation in one piece to make way for the project. For protection

appropriate tender phasing and clear task interface division at the

purpose, the relocation plan involved reinforcement of the building’s

beginning of the tender stage. Apart from avoiding contract risks to

foundation, structure, external walls and decorated surfaces, while

the greatest possible extent, Arcadis also sought to minimize evading

unconventional work techniques and imitation materials were used

of responsibilities and disputes between the main contractors so

for the doors and windows.

project costs could be controlled within the budget and to ensure an efficient work schedule and good work quality.

In the Shanghai Magnolia Plaza project, Arcadis compiled corresponding tender documents and lists based on the construction

8

techniques of each tender stage and actual progress in an innovative

measures adopted included rooftop heat recovery facilities and

manner. Taking into consideration the extraordinary heights of the

chilled water collection for irrigation and green initiatives so as to

buildings in the project and the top-down techniques employed

enhance sustainability of the project.

for constructing the podium basement, the characteristics of the top-down construction method (temporary cushion, one pillar one pile, repairing exposed earth edges by pounding) and skyscraper project (interim fire measures, vertical conveyance and pumping concrete to an extraordinary height) were specified in the tender stage for the main contract to prevent disputes from arising in the

Looking into the future, new requirements of the new digital business model for practitioners

course of construction or final accounts settlement. In the steel structure tender stage, Arcadis specified that all detailed costs were

For the future development of the quantity surveying industry in

considered in the tender price (explained in additional diagrams)

China, Mr Joe Chan, Head of China East, Arcadis, gave his unique

through adjustments based on quantity and price determination

opinions. He believes the Chinese quantity surveying industry will

principles of the international lists in order to avoid disputes

enter the digital era as technologies continue to evolve and market

regarding the tender price and quantities.

demand continues to change. In the near future, digitalization will overturn established business models and ways of practice.

In response, practitioners in the quantity surveying industry must

Urban renewal facilitated by mission of sustainability Arcadis’ mission has always been to follow sustainable development concepts in creating green and scientific modern architecture, especially against the background of urban renewal. As the full-

change their way of thinking, reduce manpower input in basic tasks through automation and place more emphasis on analysis and planning to enhance their own professional value. In short, the industry should change from a service provider to partner by offering professional advice to investors as to how a project can be completed in the most cost effective way.

course cost consultant and contract management service partner, Arcadis provided strategic advice for refurbishment, upgrading and protection of historic buildings and actively contributed to urban renewal by encouraging the owner to adopt green and sustainable design plans. In comparing construction costs, Arcadis selected suppliers with sustainable techniques and means.

Mr Chan said the new business models would spur corresponding changes in requirements for industry professionals, companies and professionals must prepare themselves and embrace the arrival of the new era. On the one hand, proactive digitalization was necessary; with more basic tasks digitized, more professional capacity could be released for analytical tasks. On the other hand, more training In order to turn Raffles City Changning into a green project, the consultant team studied various sustainable development techniques; Arcadis provided professional opinions from the perspectives of construction and operation prices. The owner adopted techniques and methods such as the LOW-E vacuum glass

for employees was needed to enhance their analytical and planning capacities. Successful transformation based on experiences gained from past projects would allow the industry to play a more important role in the process of urbanization and the “go global� strategy of China.

curtain walls to minimise heat conduction. Other techniques and

9

Best Practices for RICS Awards China 2018 Winning Projects and Teams

RICS Awards China 2018

PROFESSIONAL CONSULTANCY SERVICE TEAM – CONSTRUCTION

Winner East China Architectural Design & Research Institute

How the newly inaugurated Hong KongZhuhaiMacao Bridge was built?

The 55-kilometre Hong Kong-Zhuhai-Macao Bridge has officially opened. The longest sea crossing in the world comprising bridge, island and tunnels has significantly shortened the distance between the three regions, a trip from Hong Kong to Zhuhai and Macao is now a short 30-minute drive.

The Bridge designers and builders who designed and constructed this bridge are the ones we should thank and remember in this great moment.

The construction of the Hong Kong-Zhuhai-Macao Bridge took 14 years from design to completion. Behind this world-class engineering feat were the devoted efforts of dozens of entities, more than 1,000 experts and technicians collaborated to overcome the innumerable challenges encountered. Arcplus Group was responsible for detailed design and construction works of the Macao Port, a huge project with an area of 580,000 square metres. Sparing no effort, Arcplus Group successfully completed the project 8 to 10 months ahead of schedule, reducing the investment amount by close to MOP$3 billion. Lighting up took place on 18 December 2017 in celebration of the 18th anniversary of Macao’s reunification with China, an achievement dubbed by many as “miracle of Macao”. Arcplus Group made great contributions to ensure smooth completion of the Bridge’s construction and was a well-deserved winner of the grand prize of Professional Consultancy Service Team of the Year in the RICS Awards China 2018.

10

“Arcplus Group faced more than technical challenges in its

checkpoint for three regions on one spot”. The two projects took

role as designer and manager of the Hong Kong-Zhuhai-Macao

place during the same period, with the same construction conditions,

Bridge Macao Port project. Other difficulties encountered include

tight schedules and a similar scale, bringing twice the amount of

international construction modes and design practices which they

pressure or even greater. Furthermore, challenges came from the

were relatively unfamiliar with, and how to define the scope of its

different systems and laws of the three locations under the One

own role. Arcplus Group completed the design and management

Country-Two Systems mechanism and the complex interfaces and

tasks of the Macao Port with the aid of advanced management

huge volume of communication as a result of parallel appointments.

approach, strong technical capacity, efficient coordination, farsighted risk control mechanism, support of innovative technologies

Challenge 2 – Completion of detailed design in six months to meet

and an informationised system. It greatly promoted work progress

the tight schedule: It was only three years from the government’s

and successfully interpreted the important role of a design and

target completion date when the Group took over the design of the

management consultancy in large-scale complex projects. As the

Macao Port. The Macao government required the Group to submit the

Belt and Road Initiative expands, this project of the century will bring

details of the existing drawings based on the drawings by a Mainland

more diversified global business, accelerate the internationalisation

company for facilities with an area of 580,000 square meters within

of its operation and set an example of successful transformation

six months and coordinate with Mainland contractors to complete

towards a full-stage management consultancy for Chinese

the construction works. The project cycle was extremely tight.

companies who plan to go global,” said Mr Gao Shibin, head juror of the jury for the RICS Awards China 2018.

Challenge 3 – Mainland standard or Macao standard? The Macao and Zhuhai governments had problems in deciding whether the project should follow the Mainland or Macao construction model.

One island and two ports: Heavy responsibilities and numerous challenges

When first commissioned to design the Macao Port, the Group was asked to follow Macao’s technical standards and design taking into consideration the fact that the project would be completed by Mainland contractors and handed over to the Macao government for operation upon completion. This gave rise to the question of which

Before taking on this project, Arcplus Group had more than 10

standard to follow in the detailed design.

years of experience in projects such as large-scale integrated transportation hubs, sub-districts of cities and skyscrapers. The Group has gained rich experiences and developed sophisticated management tools, allowing it to become China’s leading professional management consultancy in domestic transportation hubs. Not only did it win an international contest with its original plan for a turn-key project for the Zhuhai Port, it was also commissioned by the Macao government to undertake the important task of detailed design and construction of the Macao Port.

Challenge 4 – Complex communication channels due to multiple roles and stake holders: As the project’s design and management consultant, not only was Arcplus Group responsible for the design and consultation tasks during the design stage, it also had to supervise the contractors in the construction stage. Besides the owners, Arcplus Group had to communicate with related parties, including design institutes, contractors and supervisory units. Because parallel contracting had previously been adopted for the design tasks for the Macao Port Management Area, a huge volume of communication with Challenge 1 – Double the amount of pressure from parallel

many different entities of design and management was necessary in

appointments: Both the Macao and Zhuhai Ports are located on the

the beginning of the detailed design phase.

Zhuhai-Macao Boundary-Crossing Facilities, which is China’s first dual port facility built on an artificial island created by reclamation.

Challenge 5 – Taking great risks as the project is the first one abroad:

It is named “two ports on one island, co-location joint border

The project is Arcplus Group’s first genuine overseas management

11

Best Practices for RICS Awards China 2018 Winning Projects and Teams

and consultation project that follows foreign practices and standards

advantage of the efficiency made possible by the construction plus

entirely. There were various uncertainties in technology and cost

management approach. The deadline was met by completing more

control in the project.

than 9,000 construction drawings in less than six months, allowing more precious time for production of drawings for the construction that followed and giving the owner valuable extra time for tendering.

Design as the main task: Three years of effort bear fruitful results

Strengthen on-site works supervision and creating “miracle of Macao” under the security afforded by the system: Arcplus Group actively adapted to the Macao model and learned the responsibilities

In late 2017, Arcplus Group successfully completed construction of

of a designer under the Macao approach. After the contractor started

the Macao Port within the 3-year time frame.

work on the site, the Group actively collaborated with surveyors and the supervisory entity to help the owner to supervise and manage

Assisted the Owner to decide on the Macao model through

the construction work of the main contractor and ensured that

comprehensive planning: With the owner unable to decide which

technical standards were followed. The firm played a leading role in

design standard and construction model to follow, Arcplus Group

coordination and communication in the critical aspects of comparing

made use of its network throughout China to source information,

and selecting technologies, and successfully turned the delayed

organized professionals to extensively collate the collected data

project around into an early “miracle” completion.

for research and analysis, and finally performed a comprehensive comparison of the design standards, laws and construction models of the Mainland and Macao. On the other hand, a thorough analysis was also conducted on the owner’s various professional consultants and Mainland contractors’ experiences and capabilities. This laid the solid groundwork for the Macao SAR Government’s eventual decision that the Macao design standard, works standard, and inspection standard be adopted throughout the construction process.

Sound management supported by technology During the 3-year design and construction period, Arcplus Group fully applied its vast experience and advanced management tools derived from large-scale transportation hub projects and helped the owner complete a series of improvements and enhancements to the project, bringing even greater benefits to the owner.

Deploying rich professional talents to support the core team Taking the lead to optimise plans and reduce investment (costs): In

As a professional management consultation team for domestic

taking on the duties of enhancing and developing detailed design of

transportation hubs, Arcplus Group has a sophisticated project

the project, the primary task was to enhance the master plan by the

organization structure and management skeleton team, but to meet

local design unit in Macao so as to reduce the cost of construction.

Macao design standards and follow the Macao construction approach

Arcplus Group helped re-define the construction standards for

as required by the owner and take responsibility for the management

the project, enhancing and adjusting the construction plans of

and consultation services assigned by Hong Kong and Macao design

the domestic and non-domestic parking stations and master

institutes, additional professionals in transport, law and construction

transportation plan, resulting in a 20% - 30% reduction in the total

work arrangement and coordination were recruited internally and

investment (nearly MOP$3 billion) as a result.

deployed to support the core team. In addition, experienced local consultants were employed in Macao to make up for the shortage of

Making sure drawings were completed on time for smooth

professionals competent in the Macao design standard.

commencement of work: As the last of the three ports to commence construction, turnkey design management was used in the design

Project risk management guarantees completion of project

stage to link up all the design resources of the company, taking

In order to control project risks effectively, Arcplus Group assessed

12

the potential risks in advance when negotiating the contract. These

confirmation would be needed during construction, the owner

risks were identified and plans devised, risk factors and mitigation

included the development of a management information system

measures were specifically included in the contract to prevent major

as one of the main contractor’s duties as advised by Arcplus

risks, ensure overall progress of the project and give service feedback

Group. After the main contractor started working at the site, As the

to the owner.

consultant, Arcplus Group provided major support to the design of

∂ Preparation work prior to signing of the contract is critical.

the information system architecture and the process of authorization

They include studying the draft contract and tender documents,

ranking. Subsequent application proved there was a significant

preparation for bidding, negotiations before contract signing, and

increase in communication rates in replies and approvals for the

a full assessment of the project risks, including agreement on the

800 or more RFIs, more than 2,000 types of material and 20,000+

proper mechanisms for handling claims and disputes.

detailed drawings with the aid of the management information

∂ A full understanding of the tender documents, especially

system, which played an important role in speeding up response and

conditions regarding inspection of construction works,

the approval process.

modification, work-related claims, advanced payment of work fees, fines for delays, performance bond and exchange rate risks. ∂ A full understanding of related local laws and policies, finance, tax, insurance and natural conditions, material prices and work site conditions is necessary so as to assess the level of risks and hazards, and formulate precautionary measures.

Refinement of progress management with support of work package tools Work package progress management is a set of management tools for progress planning and tracking developed by Arcplus Group in managing a series of large-scale transportation construction projects. To deal with the major challenges in work progress of the Macao Port project, Arcplus Group allocated resources to each stage of the project and engaged dynamic management throughout the process through flexible application of the work package method.

The method was extensively applied throughout the project and used by 200 personnel, at its peak, up to 120 personnel were logged on at the same time. In the progress planning phase, the whole project was divided into different packages to determine the resources needed in each stage and tracked the progress of each team; as work commenced, the schedule was closely followed. When changes and adjustments were necessary, manpower and resources

In a short space of 13 months from December 2016 to December

were deployed with the work package as the smallest unit which

2017, starting with blocks of structures being erected in the Macao

significantly minimized resource wastage caused by the changes and

Port, the main body of the Hong Kong-Zhuhai-Macao Bridge was

ensured smooth progress of the project.

fully lit in the evening on the last day of 2017, signifying that the Bridge was ready for use. On 15 March 2018, the HKZM Bridge Macao Crossing Area was officially handed over to the Macao SAR Government.

A great leap in communication efficiency under informationisation The project was carried out with the Macao construction approach.

Taking into consideration the fact that large numbers of RFI

13

Best Practices for RICS Awards China 2018 Winning Projects and Teams

Internationalisation: The only path for chinese companies under the belt and road initiative

“Looking back at the entire design and consultation management process of this project, my view is that when a Chinese company goes global, the primary task is to better understand international standards and rules, train international talents and develop a full life cycle risk control system with contract management as the core. In

The Belt and Road initiative involves 26 countries and regions,

China, most of the engineering companies are at an early stage of

covering 63% of the world’s population and boasting an economic

internationalisation, they must progressively familiarise themselves

value of US$21 trillion which represents 29% of the global economy.

with the overseas construction market and construction workflow,

In 2016, the value of newly-signed engineering contracts awarded

actively try to globalise their business and strengthen cooperation

to foreign companies by the countries along the Belt and Road

with professional bodies such as RICS. As an international

route totalled US$126 billion, the total value of new contracts

professional institution in real estate and construction, RICS

China awarded to foreign companies grew 16.2% year-on-year.

represents the highest standard and most stringent regulations of

Infrastructure development along the longest economic corridor in

the sector, it trains high-quality talents for the industry and provides

the world is a blessing to large domestic engineering companies.

us with best practices around the world and the latest information. It

However, although backed by a favourable policy environment and

also gives Chinese companies the chance to exchange and cooperate

supported by ample development opportunities, domestic companies

with the world’s leading companies,” commented Ruan Zheming, the

had to deal with significant challenges in business globalization,

officer-in-charge of the Macao Port project, Deputy General Manager

religious beliefs, jurisdiction, and social and political conflicts. As

of Translator’s note: Cannot find English name of this company

the first overseas project handled by the project team of Arcplus

from Internet, Arcplus Group and Senior Vice-President of Wilson &

Group, success in the Macao Port project has helped fill a void in

Associates, Arcplus Group.

overseas project management and serves as an excellent example for companies planning to go global.

Three members of the Macao Port design consultation and management team are RICS members, they served as the project’s think tank and laid a solid foundation for the success of the project with their expertise in design consultation and management. In the process, it became obvious to many project members that the RICS standard and accreditation are advanced and recognised globally.

They also strongly acknowledge the “customer-oriented” approach and professional conduct advocated by RICS and applied for RICS membership to advance their careers.

14

RICS Awards China 2018

PROFESSIONAL CONSULTANCY SERVICE TEAM – REAL ESTATE

Winner

JLL

RICS Awards China 2018

RESEARCH TEAM

Winner

Cushman & Wakefield

15

Best Practices for RICS Awards China 2018 Winning Projects and Teams

RICS Awards China 2018

FACILITY MANAGEMENT TEAM

Winner

Cushman & Wakefield

Cushman & Wakefield won Facility Management Team of the Year award for its excellent real estate services

Growing importance of facility management China is late in developing its facility management industry compared with Europe and the US, but demand for professional facility management continues to grow as more and more foreign companies have entered the Mainland market. Represented by leading global real estate services firm Cushman & Wakefield, professional facility management service providers have entered the Chinese market. After an extended period of theoretical studies and practice, the significance and effectiveness of facility management are now broadly recognised by business organizations.

As a supporting non-core business, facility management not only affects a company’s revenue, cost, brand and social image, it is also important to the production of its core business or services, employees’ quality of life, health and safety, work environment and asset values. Facility management has a growing impact on the promotion of and support for final goods or services, its importance in a company’s strategy is becoming gradually apparent. From an organisational perspective, the value of facility management is mainly manifested in the following aspects: 1) Improve and maintain a high quality workspace. By providing a safe, environmentallyfriendly, healthy, comfortable and people-oriented office and living space, the Facility Management Department also assists the Human Resources Department to attract and retain high-quality employees on the one hand, and helps to maximize employee efficiency on the other; 2) Increase full life cycle asset values. The ultimate goal of the professional approach and means of facility management is to increase the asset value of a company. They include full life cycle building services management, upgrading asset brand value, green building certification, application of innovative technologies, etc. A facility manager achieves the highest economic benefits by upgrading full life cycle asset values through protecting and expanding asset values;

16

environmentally-friendly, safe and personalized work space. Coupled with other factors such as technological evolution and business process outsourcing, there are huge market opportunities and challenges in the facility management industry.

More stringent cost control is needed. Under the current economic environment, facility management expenditure, as an indirect cost of product (and services), affects operating cost and market competitiveness of key businesses. Companies seek professional facility management partners by contracting out its facility 3) Support development strategies and core business. The facility

management service and enhance operation efficiency and cost

manager is increasingly involved in a company’s strategic decision-

effectiveness through professional management, standardisation of

making. He or she provides facility management support for the

processes and economies of scale of material/service providers. How

formulation of development strategies, especially in the formulation

to realise continuous cost savings and a balance between cost and

of asset management strategies. The facility manager then develops

service quality are cost management issues which a facility manager

appropriate facility management strategies based on the company’s

must consider.

development strategies for promoting development of the company’s strategic and core businesses, fulfilling its social responsibilities and

New office work practices give rise to new requirements. Currently,

boosting sustainable development;

most employees of a company were born in the 80s or 90s. They have higher demands for their work environment, preferring greater

4) Ensure continuation of business in the face of unforeseen

comfort, openness and more collaboration, they are also insisting on

incidents. Major unforeseen events such as earthquake, fire,

better office maintenance and design from the facility management

typhoon, rainstorm, explosion or breaking of glass panel or collapse

department. In response, the facility manager must provide flexible

of advertisement signs not only lead to considerable loss of human

support for office space management, including hardware support

lives and property, but also suspension of production and business

system and administrative support services. Companies are also

operation, impacting society in a significant way. When affected by

beginning to value employees’ health and work-related well-being.

such incidents, a facility manager must respond properly and ensure

Office amenities that cater to employees’ experiential and emotional

continuation of business.

needs such as gymnasium, massage room, baby care room and juice bar are provided, setting new requirements for facility management.

New requirements for facility management under the new environment

Application of innovative technology. Innovative technology is playing an increasingly important role in facility management, and the industry is placing more demands on the application maturity of innovative technology. Technological concepts such as big data,

As structural transformation and innovation-driven development

artificial intelligence and block chain are gradually being applied by

takes place in the Chinese economy, companies are under pressure

the facility management industry in its quest to maintain competitive

to boost return on investment and operation efficiency and to

advantage by significantly increasing service quality and efficiency.

reduce costs. Employees have greater demands for a green,

Facility management service strategies have shifted from “business-

17

Best Practices for RICS Awards China 2018 Winning Projects and Teams

driven” to “data-driven”. By collecting, analysing and sifting through

¬ Innovative services

huge amounts of internal and external data, facility management

Facility management is a service type industry. Cushman &

service providers can forecast market demand, conduct smart

Wakefield’s facility management team has always emphasized that

analysis and decision-making, and devise more effective strategies.

awareness of team service as well as development and provision of innovative services are the keys to success. In practice, new types of service such as innovative MRO procurement, optimization of frontdesk services, promotion of a healthy office, real-time service rating and comments, and integration of the sharing mode into the office environment are employed in many aspects. Cushman & Wakefield has integrated its best practices into these customer-oriented solutions to provide customised services to customers. ¬ Technology driven Cushman & Wakefield have always striven to employ technological and informationised tools in facility management to optimize routine operation and service flow of buildings, and provide complete solutions for the full life cycle of real estates. Technological and informationised elements are included in all aspects of routine management, including smart office solutions that range from

New requirements for facility management under the new environment

environmental surveillance system, smart building system, energy management platform, space management platform, smart access, self-help printing, online booking and visitor registration. Technology is used to promote operation and upgrading of buildings to ensure

The market for facilities management is gradually expanding and

the buildings and facilities under management are in their optimal

the demand for professionalism increasing. Cushman & Wakefield

condition as far as possible. This helps to minimise consumption

is prepared to continuously update its concepts and technology to

during operation and increase efficiency by providing convenience to

compete in the ever-evolving facility management market, and to

employees who are occupants of the buildings.

raise its business and service levels to cover every aspect of the market and promote development of the industry.

¬ Research and practice Cushman & Wakefield

¬ Professionalism

actively maintains

Cushman & Wakefield’s facility management team of nearly 1,500

good communication

professionals has over 9 million square meters of company assets

and cooperation with

under its management in the Greater China Region distributed in

different kinds of trade

approximately 80 cities. The team satisfies customers’ different

associations, including

needs with its full range of complete professional service solutions.

RICS, and participants in

Value-added solutions are customized based on the company’s

activities and forums they

rich experiences in different stages of the real estate full life cycle

organise to keep abreast

and customers’ needs continuously uncovered through practical

of market changes and

operation. These customized services include testing, adjustment

the latest practice,

and acceptance service, building due diligence, benchmark analysis

share its best cases and

report, facility management training, quality management, EHS

engage in exchanges with

management, etc. Best practices are fulfilled through pragmatic

p e e rs . T h e c o m p a n y ’s

routine work and diversified value-added services.

Facility Management Department signed a strategic cooperation agreement with Tongji University’s Facility Management Research Institute to jointly explore and discuss cutting-edge issues faced by the industry and application of technology on an ongoing basis.

The team has conducted benchmark analysis and investigations on all the companies under its management since 2012. In 2017, the survey scope was expanded and a report on the benchmark analysis of facility management industry was released. The purpose was to create greater value for customers’ assets with best practices as

18

the goal by setting the most appropriate standard for the facility

facility management industry. On the other hand, Cushman &

management services it provides based on the most realistic data

Wakefield’s facility management team is committed to promoting

analysis conclusion and rules.

the development of the sector, this sense of responsibility also helps promote industrial collaboration as well as development and transformation of facility management in China,” commented Mr Gao

Excellent results brought cushman & wakefield the well-deserved best facility management grand prize

Shibin, head juror of the jury.

2017 was a fruitful year for Cushman & Wakefield’s facility management team. Besides customers’ gratitude and appreciation, it also received recognition from many different trade associations, several of which are listed below: ¬ BMW Dadong project. Installation of 5S and standard signs at nearly 15,000 locations within three months from May to August 2017; ¬ In 2017, the 50,000-square-meter Huawei Langfang park reduced monthly operation expenses of nearly RMB2.5 million by adopting technological innovation solutions and slashed energy expenses of nearly RMB3 million for its customers by streamlining business needs; ¬ Concrete efforts were made to enhance customers’ experience in Huawei’s Dongguan project, they included provision of the typical “Temperature FM service” which was promoted in all other industrial parks in China. Relocation of the Huawei D5 supply chain building in Songshan Lake, Dongguan, is recognised as an excellent job, taking over of the 100,000-square-meter area and relocating more than 3,000 employees were completed in 40 days; ¬ In the Bayer project, we proposed some of the cost saving proposals under the premise of maintaining service standard, saving RMB1 million for the customer; ¬ In the past year, several hundred commendation letters were received for various projects, and there was an increase in customer satisfaction in many projects. For example, GE employees’ satisfaction score was above 97 for four straight years, and the satisfaction score for the Bayer project topped 99; With these excellent results, Cushman & Wakefield’s facility management team received the Facility Management Team of the Year award at the RICS Awards China. “With its international real estate consultation service platform and development rooted in the Chinese domestic market, Cushman & Wakefield thoroughly understands Chinese companies’ core needs and concerns for facility management services. By providing meticulous and flexible professional technology and data-driven services with the aid of technology to satisfy the needs of companies in the current era, the company is setting a successful example for China’s

Sharing experiences of success: Talents and collaboration are the keys Cushman & Wakefield’s success in facility management service lies in its systematic management experiences in real estate’s full life cycle, outstanding management of facility management talents and assistance and collaboration of customers and the market.

Recruiting and retaining talents. Facility management is a compound industry which has relatively high requirements for professionals.

A talent must be well versed in the theories and knowledge, have practical work experience in the sector, strong adaptability to changes, etc. Cushman & Wakefield emphasizes the recruitment and training of talents: ∆ In developing a talent pool, Cushman & Wakefield trains and develops talents at different levels through close cooperation with leading universities, vocational and technical colleges. It also helps universities and colleges put facility management theories into practice and provides job opportunities for exceptional new talents; ∆ For employee training, Cushman & Wakefield strives to remove barriers to the “last mile” of talent development. A complete talent development and benefits system is devised to promote continuous development of employees on the one hand, and ensure the stability of project teams on the other; this is to help companies become leaders in their fields.

Retaining outstanding talents is the only way to raise the standard of the industry, this is achieved through provision of higher quality services.

Collaborate with customers for mutual benefit, synchronous growth

19

Best Practices for RICS Awards China 2018 Winning Projects and Teams

with suppliers. Cushman & Wakefield maintains close contact with customers. A mechanism of mutual communication, collaboration and governance is devised for understanding customers’ aspirations and expectations in operation, performance management and formulation of strategies; the company also seeks to understand customers’ needs so that the quality of routine services can be continuously improved and upgraded to satisfy customers. Furthermore, Cushman & Wakefield has developed partnerships with suppliers through a sophisticated and systematic supplier management process so they can grow together and become leaders of their trades through collaboration and innovation.

Future offering: one-stop solutions For the future development of China’s facility management service market, Mr Zhang Haitao, Head of Facility Management, Greater China at Cushman & Wakefield, said: “Although facility management service in China is in a stage of continuous development, more and more domestic companies and public facility operation managers are becoming aware of the values and significance of facility management service. This developing trend brings great potential to the market. Under the domestic market environment, obviously companies’ requirements for facility management have relatively strong Chinese characteristics. The nature of service is the domestic facility management operators’ main concern; on the other hand, active development of innovative technology has transformed the modes of both facility management service and management.”

As the real estate industry continues to develop actively, companies’ asset management needs has also shifted from the relatively simple mode of leased or self-owned properties to more diversified offerings. To an asset operator, property management, facility management and asset management are probably the management approaches for such diversified combinations. In order to provide customers with integrated service solutions, a facility management service provider should take customers’ needs arising from market changes into full consideration.

20

RICS Awards China 2018

FACILITY MANAGEMENT TEAM

Winner

GT Land Plaza

The key to successful facility management of China’s largest LEED O+M certified project

At the presentation ceremony of RICS Awards China 2018, GT Land Plaza clinched three important prizes, namely: a winner prize of Facility Management Team of the Year and two excellence prizes of Sustainability Achievement of the Year and Commercial Project of the Year. To satisfy the curiosity aroused by such remarkable achievements, the editor takes a peek into GT Land Plaza’s secret formula in facility management in this edition.

Certified as the world’s largest LEED O+M project GT Land Plaza is situated in the core CBD zone of Zhujiang New Town in Guangzhou. It is a huge commercial complex encompassing six projects, namely Spring Mall, Summer Mall, Middle Mall, Autumn Mall, Winter Mall and GT Apartment, with 5A office blocks, retail space, a hotel, leased apartments, residential apartments and cultural and leisure facilities. The total building area is 920,000 square meters, of which 200,000 square meters of commercial space are occupied by business blocks, and 370,000 by eight office blocks, five apartment blocks and a hotel. As the property that occupies the land above Metro Line 3, Metro Line 5 and the APM Line, GT Land Plaza enjoys unparalleled geographical advantages. The area is

21

Best Practices for RICS Awards China 2018 Winning Projects and Teams

coined the “The CBD within CBD” for its great investment value and

¬ With 99% of the office space rented out, 300,000 daily visitors at

offers the highest potential for development.

Spring Mall, a new hotel to be built in Winter Mall and apartments near the office blocks and shopping malls, high standards were

This large-scale and complex project was awarded LEED for

required for dust and noise control

Building Operations & Maintenance: Existing Buildings (LEED O+M)

¬ Above the 50-meter subway which connects B2 level of Spring

certification by the U.S. Green Building Council (USGBC) this year.

Mall and Summer Mall is a road in a busy district, so there must be a balance and coordination between offices and mall tenants,

¬ The world’s first LEED certified project in 2018;

customers, government departments, designers and work teams;

¬ The only project in Guangzhou certified for office blocks and

also, quality and safety needed to be ensured, finally, it is a race

shopping malls;

against time to meet the scheduled deadlines

¬ The commercial complex with the highest level of LEED certification

¬ Each work item is extremely challenging: hotel remodeling works

and the largest in China in terms of floor space;

involved widening of pipe wells into elevator shafts; additional

¬ The largest LEED-certified O+M project for existing buildings,

food premises in the shopping mall required adjustments of the

largest Platinum-class project and largest certified commercial

power supply and exhaust pipes; during excavation of tunnels, it

complex project in the world;

was necessary to watch out for road settlement and damage of

¬ A project with three RICS surveyors, four LEED APs and one WELL

underground pipelines; remodeling of shopping malls involved re-

AP overseeing commercial assets with an area of more than 920,000

defining fire services divisions, structural reinforcement and re-

square meters.

planning of the underground car park.

First-class facility management based on innovative technology and methods Innovation and sustainability are high on GT Land Plaza’s agenda as always. Realizing that artificial intelligence and equipment automation would be the trend of facility management, GT Land Plaza set up its Innovative Technology Department in 2016 to supervise product R&D and integration of market AI services. At As an enormous Class A complex which has operated for more than a decade, it was difficult for GT Land Plaza to include all the shopping malls and office blocks, altogether 12 independent buildings, into one single certification compared with relatively new buildings or single block developments; the challenges were immense. In the final appraisal, GT Land Plaza scored 86 and was awarded LEED’s highest level of certification. This is achieved thanks to its first-class professional capacity for equipment and facility management.

present, more than ten R&D projects have been incorporated into routine facility management, resulting in savings in manpower costs and enhancement of quality service standard. To move with the times, the company employs environmentally-friendly technology to create additional value and provide premium green business space for tenants and consumers. ¬ Recycling of air-conditioning condensed water: Condensed water are recycled and fed to the cooling tower which improves heat exchange efficiency on one hand and reduces water and electricity

Large-scale asset upgrading meant greater challenges

usage on the other. It also minimizes wear and tear of the water pumps; ¬ External lighting control: The lights are turned off automatically on sunny days and switched on when illumination is low, this saves

In 2017, GT Land Plaza commenced large-scale alteration and

electricity and manpower costs;

extension works, which included excavation of two tunnels, makeover

¬ Extensive greening of premises: Hanging gardens, natural plant

of Spring Mall, extension of Winter Mall, redevelopment of Block H

landscapes, nurseries and seedlings, vertical greening, sunken

of the Hotel into an office building, etc. These raised the difficulty of

greenbelt, outdoor automatic spraying system and indoor advanced

facility management.

automatic dripping system effectively minimize the heat island effect and improve air quality;

¬ Multiple building and construction works in progress in an area

¬ Facial recognition system is employed in Spring Mall and Winter

of more than 80,000 square metres made safety management an

Mall to enhance building security;

important task.

¬ Upgrading of carpark system by introducing full-function pay and

22

contactless payment systems: Alipay, WeChat Pay, China UnionPay,

water equivalent to approximately five standard swimming pools

NFC and cash;

annually. External light control saves electricity and manpower

¬ Property Tactic Unit: this includes proprietary fire engines, fire

expenses, reducing the 2017 energy expenses by 3% over that in

motors, a patrol fleet equipped with GPS function that covers all

2016. By using directly purchased electricity, the eight projects in

aboveground and underground properties along a distance of one

Guangzhou saved RMB15 million annually, which is equivalent to 10%

kilometre. An automatic number plate recognition system is installed

of the savings in the cost of electricity in a year;

for automatic activation of entrance barriers to facilitate entry into

¬ More premium tenants and lower vacancy rate. More than 30

and exit from the carpark and to respond effectively to typhoon, fire,

Fortune 500 companies have their offices at GT Land Plaza, including

flooding and emergencies so as to enhance safety of the property

IBM, GE, P&G, Mitsui & Co., NSC and Carlsberg. Currently, as high as

and assets;

98% of the offices are rented out;

¬ Innovative supplier management system: Separate and independent

¬ Higher customer satisfaction: A questionnaire survey was

resources, procurement and contract divisions are set up for cloud

conducted during LEED certification. The 5,259 questionnaires

storage of supplier resources to improve efficiency;

collected indicates that more than 92% of the customers were

¬ Innovative power consumption mode: direct power suppliers from

satisfied with temperature comfort level, acoustics, indoor air quality,

all parts of China are invited to provide quotations to secure a low

illumination and building hygiene.

cost power source.

Furthermore, GT Land Plaza’s excellent facility management also raised its sustainability index. In 2017, Spring Mall and Summer Mall GT Land Plaza is cooperating with leading solar power firms to jointly

received the grand prize of Sustainable Building Index Verification

develop solar power applications to further control energy expenses,

Mark award from the Guangzhou Tianhe CBD Management

reduce the heat island effect and make better use of idle space.

Committee and Hong Kong Quality Assurance Agency (HKQAA); it is also the recipient of RICS’s Sustainability Achievement of the Year award.

Remarkable effectiveness and massive efficiency Massive economic efficiency. The leased out area of Spring Mall has

Upgraded management framework strengthens the team’s coordination capacity

increased by 1,500 square metres with rent and management fee increasing by 30%; the leased out business area of the South Wing

The GT Land Plaza project became a focal point of shareholders due

of Winter Mall has increased by 12,000 square metres. Remodeling

to its uniqueness and complexity. The Quality Safety Director and

works of the high zone of Office Block H were completed three

Asset Director are tasked with ensuring safe operation, implementing

months ahead of schedule, increasing the available leasing area by

cost control measures and supervising major alteration works. The

26,000 square metres with the annual rental and management fee

project team reports work progress to shareholders, owners and

increasing by RMB60 million.

other stakeholders, and solve technical problems, including major amendments through negotiation. These help to speed up decision-

¬ Significantly lower energy consumption. The condensed water

making and implementation of various major issues and facilitate

recycling schemes of four office blocks helped the property save

work progress.

23

Best Practices for RICS Awards China 2018 Winning Projects and Teams

Due to the uniqueness and complexity of the development, the facility

management talents continues to grow. How to train and attract

management team was restructured by upgrading the existing

talent has become one of the core competitiveness in enhancing

property management division to asset service center with scope

asset value.

of duties covering the full life cycle of property assets. Reporting to the centre are property department, safety department, contract

Realizing the importance of nurturing talent long ago, GT Land Plaza

budget department, engineering department, quality inspection

has raised the professional standard of its team, which includes three

department, asset value-added department and customer services

RICS members, namely the Group CEO, Vice President (Business) and

department. All departments engage in close cooperation to ensure

Asset Services General Manager (China region). As members of the

smooth completion of the upgrading and remodelling. Externally, the

core team they formulate facility management service systems and

team coordinates with stakeholders, including the owners, project

standards; they have become the dynamic nucleus of continuous

department, design department, office department, shopping mall

innovation which is radiated to all projects throughout China.

department and sub-contractors to maintain close communication, and to make sure tenants have a suitable work environment and the

The team emphasizes nurturing of talent. In order to step up

work schedule is not affected.

facility management training, a property management manual, works management manual and safety management manual were compiled and published independently. During application for LEED certification, the GT Land Plaza team stepped up its talent training with long-term professional and systematic training provided to employees. The effort paid off, five employees received USGBC certification, and facility management professionals of internationally recognised standard were deployed to ensure value protection and value addition of projects and sustainable development of the company.

GT Land Plaza has adopted an innovative management model. A procurement department is set up to practice central procurement and tendering. The resource management department, contract management department and procurement department have clear-cut duties and are supervised by the general manager with quarterly internal audits carried out to ensure that the 3,000+ procurements of all sizes and types made annually are conducted in a fair and impartial manner. Secondly, suppliers or contractors are jointly sourced and selected by the general manager, requesting department and resource department. A suppler database has

Mr. GAO Shibin, head juror of the RICS Awards China 2018 jury,

been set up and uploaded to cloud storage to facilitate joint use by

said, “GT Land Plaza is a city complex with a total building area

different regions for different projects which increases efficiency.

of 920,000 square meters. Its enormous size, remodelling and

Currently, Guangzhou, Hunan and Hangzhou are included in this

complex upgrading and works for the diversified forms of business

scheme.

and operation were very serious challenges to facility management.

However, with a proactive and professional attitude, innovative and efficient management and application of methods, as well

First-rate facility management talents ensures success In China, traditional property management mainly targets management of hygiene, security and minor maintenance and repairs. As commercial projects continue to develop and mature, especially with the appearance of large-scale integrated projects all over the country, demand for highly experienced professional facility

24

as aid of smart IT technology, the project was granted LEED platinum certification and received an RICS grand award in facility management. Most importantly, it has set an example of best practice in facility management of large integrated projects, which vindicates the importance of facility management in enhancing property value.�

RICS Awards China 2018

REGENERATION TEAM

Winner

Arcadis

Traditional style meets modern excellence: Arcadis sets the standard for topclass cost consultation

Arcadis’ exemplary work regenerating the Capella Shanghai, situated in Jian Ye Li, Xuhui District, recently impressed our judges and won them the coveted Regeneration Team of the Year at the RICS Awards China 2018. We speak to the project team behind the win to see how they did it and what this accolade means to them.

As primary property markets worldwide become saturated due to land shortage, property markets in large cities have entered an era of secondary housing stocks — China is no exception.

Shanghai is at the forefront of this change and plays a leading role in the country’s urban renewal. While other cities in western countries may be further along their urban-renewal journey than China, we all share a common goal: preserving the important cultural status of old buildings and enhancing their profitability after refurbishment.

A melting pot of oriental and western culture Shanghai has many historically and culturally significant buildings in its city centre. The special status of Jian Ye Li in Shanghai’s “Haipai” culture is what attracted its owner, Shanghai Hengfu Investment Development Co. Ltd., a subsidiary of Shanghai Xufang (Group) Co. Ltd. The Jian Ye Li renewal project strives to preserve the architectural characteristics of “Old Shanghai Alley” and deliver hotel guests an ultra-modern experience. The project’s design concept is to make visitors feel at home when they step into the hotel and, at the same time, experience the tight integration of Oriental and Western elements. Combining classic Chinese elements and 19th-Century French styling, rooms are decorated with French furniture and Chinese art work, which throws guests into confusion as they try to discern the time and city they suddenly find themselves in.

Shanghai Hengfu Investment Development Co. Ltd. has extensive experience in building renovation. For years, they have engaged in the protection and redevelopment of historic districts and streets in Shanghai’s Xuhui District, with projects encompassing gardens, houses and new-style lilongs.

25

Best Practices for RICS Awards China 2018 Winning Projects and Teams

They chose to partner with the Capella Hotel Group to take advantage of their rich experience in old-building renovation and their appreciation of cultural elements and zealous pursuit of a modern style, both of which perfectly match the project’s aims.

“The Jian Ye Li project is not only a realisation of the perfect combination of preservation and transformation of old structures, it also sets an example for other projects that rejuvenate cultural heritage buildings.”

Mr Gao Shibin, Head Juror, RICS Awards China 2018

Refurbishment: not without its challenges The subject of this project is an old alley (Nong-tang) located in the city centre, which caused various obstacles for the project team, including limited space, unusable infrastructure and dilapidated structures.

The first stage of redevelopment began in 2006 with a detailed inspection of the venue; the focus was on enhancing the space utilisation rate and rationalisation of the design. It was hoped that unusable parts of the venue could be removed to make room for subsequent work, that building facades would be refurbished, and that underground pipelines could be re-laid.

The engineering team removed all structures in the central and eastern parts of the original building so that an underground space could be excavated. After this, the original structures were rebuilt on-site, and structural reinforcement was carried out on the western side of the building.

After construction work was completed, the project suffered delays due to societal and industry concerns over the methods used to redevelop the building, which persisted for years. Fortunately, the project stood the test of time and the advantages of the redevelopment model gradually became apparent — it eventually gained industry recognition.

The second stage of redevelopment started in 2015, an integrated villa-style hotel consisting of 55 blocks was constructed in the original western and central parts of the building. Forty serviced apartments were refurbished in the east side and the original rooms, with an area of 4,000 square metres, along the street were redeveloped into commercial and retail spaces. The gross floor area was 43,236 square metres, with around 150 parking spaces in the underground car park.

The "Shanghai Old Alley” style was preserved in the overall appearance, adorned with traditional Chinese cultural elements and infused with modern high-tech equipment, which significantly improved hotel users’ experience.

26

More than just a cost consultant Arcadis was the construction cost consultant for both stages of redevelopment, providing quantity-surveying services, such as costs estimation, bidding, payment valuation, amendment review, and project settlement.

During the project, Arcadis’ did not just “connect the different parties”; instead, they ensured smooth communications between the property owner, engineering contractor and operator, and played an active role in providing advice on the project’s mid- and long-term planning.

For instance, when furnishing the interior, the hotel operator proposed solid rosewood furniture to match the hotel’s Shanghai style, which raised concerns from the hotel owner regarding cost.

Arcadis, after comprehensive research and market analysis, proved to the hotel owner and other partners that this sort of furniture would not only meet Capella Hotel’s stylistic requirements, but proved that it could be purchased within the hotel owner’s budget.

“Considering the uniqueness of this redevelopment project, Arcadis did not just serve as a bridge for communication, but also demonstrated a very high level of professionalism in the areas of cost consultation, technical support and crisis management.”

Mr Gao Shibin, Head Juror, RICS Awards China 2018

Labour and material costs Concerning labour and material costs, it was difficult to find any current cases for reference. To reduce the chance of a price dispute, Arcadis took a down-to-earth approach, which involved on-site inspections and close communication with personnel. This laid a solid foundation for the estimation of work completion dates and various costings. These learnings will help property owners and participants save time and effort when undertaking other projects.

Managing incidents Old buildings experience large numbers of sudden incidents, such as water seepage and cracking during building and construction works. This means that the possibility of changes to such projects is significantly higher than other project. To successfully complete settlement works, the project team learned that supervisors must be well-prepared to manage unexpected changes, and that smooth communication between different parties and maintaining flexibility

Lessons learned

are keys to success.

Urban renewal has bright prospects in China. Jian Ye Li’s success has

As a pioneering refurbishment project in China, the considerable

changed the face of the city and, more importantly, has accelerated

technical expertise Arcadis acquired during the project can now be

the training of new, high-calibre professional talent.

used to benefit and inform the wider industry.

27

Best Practices for RICS Awards China 2018 Winning Projects and Teams

RICS Awards China 2018

REGENERATION TEAM

Winner

COFCO

COFCO Plaza sets new benchmark for “shops turn offices” under full process management concept

As it is widely known, the current Chinese real estate market has entered the “housing stock era”, “urban regeneration” mainly by way of “conversion of old buildings and expanding inventory” in central districts of first-tier cities will become the market trend of the next decade. Under this backdrop, the “shops turn offices” project of Block C, Beijing COFCO Plaza has optimized the alteration effects and successfully increased the commercial potential of the block itself and its surrounding area based on its innovative interpretation of the urban regeneration concept, and winning the prize of Regeneration Team of the Year at RICS Awards China 2018.

Scientifically determined goal of renovation As the capital of China, Beijing is dotted with all types of buildings which have appeared in the last several decades, giving it immense potential for urban regeneration. As more and more multinationals have made their foray into China, it is plain to see that “shops turn offices” projects will be in great demand. With such a large number of regeneration targets, sensibly choosing the right ones has become the cornerstone of whether the entire project will be successful in the future.

The COFCO team had conducted in-depth market survey from multiple perspectives before carrying out the alteration works. Analysis revealed that due to geographical constraints, the COFCO Plaza project lacks a business atmosphere and effective customer foot traffic.

Also, the relatively small size and chaotic circulation of the venue are also unfavourable to it attracting traditional leases. In contrast, the average rent of the plaza office is higher than that of other projects in the business circle due to continuous increase in the Plaza’ office turnover under the favourable macro-environment of the entire market for offices in Beijing.

Based on professional interpretation of the above data, the team decided to start the “shops turn offices” project for Block C of the Plaza in 2016.

28

Three-step handling of complaints

Shopping Centres

Preparation

Handling

Conclusion

Review the day’s major construction work plans at the start of each day

Conduct 4-5 inspections and two environmental air quality index measurements daily

Summarize key problems and complaints, and highlight customers and issues that need special attention each day

Offices Pre-work

Trend of total rent of shopping centres and offices in Beijing

Precautions

communication

Tiered

Pacification

customer

and

support

compensation

(Unit: RMB'00000)

Building alteration concept based on “full cycle management”

Record

Report

Summary

2. Stringent scientific procurement process: The team has developed good relationships with contractors and suppliers during the procurement for this alteration project. Partners were cautiously chosen from the procurement base. Tendering and internal

Besides maximizing natural light sources through expansion of the

assessment were carried out in the mid-stage and suppliers were

atrium to solve the problem of lighting commonly encountered in

chosen in the late stage all according to strict process and systems.

“shops turn offices” projects, the COFCO team has an innovative

A joint account was set up to mitigate the risk of embezzlement

interpretation of green design and sustainable development. In

and protect contractors’ and suppliers’ interests. Such a stringent

the course of alteration, use of land, materials, water and energy

supervisory mechanism resulted in a high completion rate of the

were reduced to the greatest extent possible in all segments of the

project and highly effective cost control.

building full life cycle from design, procurement, building, operation and management to protect the environment.

1. Sound mechanism for handling disputes: The alteration works were carried out before all the shop leases of the furniture mall of

Total alteration cost

Block C had terminated. In order to effectively solve the remaining

RMB33,413

problems and for the tenant to vacate on time, a shop vacating task

million

Amount saved due

Savings in clearance

to reduced cost and

and compensation

increased efficiency

expenses

RMB 1.5 million

RMB1.5 million

group was formed to work out the meticulous arrangements for

¬ Total time of project: 227 days

cost control, vacating schedule and process for which risk control

¬ Total savings: RMB 3 million

measures were also devised. It has been proven that assessing the situation and formulating sufficient corresponding measures before vacating a shop is the critical factor which ensured commencement

3.Alteration strategies that equally emphasize the external and

of works as scheduled and an indication of the team’s capacity to

internal: The alteration project gave the building a facelift with a

resolve disputes.

refurbished external façade and internal decoration. The altered Block C was given a transparent façade appropriate for its office

As the alteration area of Block C lies in the middle of COFCO Plaza

nature, giving it an appearance that is more consistent with the

and its underground portion connects Blocks A and B, the noise, dust

façades of Blocks A and B. The supporting pillars on the ground floor

and odour produced by alteration works would impose great pressure

of Block C create open space which enhances dialogue between the

on the office operation areas of Blocks A and B. To prevent these

building and the city, exhibiting the more open spirit of the times.

from affecting relationships with tenants of Blocks A and B, the team devised a “3-prong” solution which involved all the team members to deal with the possible complaints about environmental issues; which proved to be very effective. Unlike the alteration works of other buildings which affected the tenants emotionally, the COFCO team

Internally, Block C’s atrium boasts a creative Y-shaped design which

won the understanding and support of tenants through scientific

expands the vertical and horizontal space visually, the broad expanse

resource allocation and butler-style customer service concept.

created brings with it a breath-taking sensory experience.

29

Best Practices for RICS Awards China 2018 Winning Projects and Teams

Building Council in September 2016 and is the first office project of all old building alteration projects in Beijing being bestowed with such an honour. In April 2017, it received the Twelve Star Certificate for Green Alteration Design of Existing Buildings from the Chinese In order to achieve the best alteration results, the COFCO team’s primary strategy was to start with adjusting the business ratio of the

Society for Urban Studies, Ministry of Housing and Urban-Rural Development.

entire Block C by reshuffling the areas for different types of business.

Project asset value and lease value rose simultaneously. With the improvement in building quality, rental for the altered Block C rose 367%, from RMB3/square metre of building area per day to RMB11/ Pre-alteration floor space allocation Offices

60,000 sq. meters

Shops

4.6 sq. meters (46,000 sq. meters?)

Car parking space, building services

14,000 sq. meters

square metre of building area per day. On the other hand, rental of new leases of the unaltered Blocks A and B also increased 15% as a result of improvements in the overall environment.

Post-alteration floor space allocation Offices, coworking space

86,000 sq. meters

Supporting facilities for offices

1.6 sq. meters (16,000 sq. meters?)

Car parking space, building services

18,000 sq. meters

The percentage area of the office zone and supporting area was

Innovative 3C service system increases commercial potential

markedly increased. This not only increased the operating revenue from rentals, but also significantly enhances the service function

Alteration works was not the only focus of the COFCO team, the

which provides tenant companies with even better office experiences.

same weight was attached to post-alteration service quality and

Levels 2 to 5 were converted from shopping mall to offices and

tenant experience. During the alteration and upgrading process,

the three underground levels, G3 to G1, were assigned supporting

the team developed a 3C system for COFCO offices, which included

functions with such amenities as gymnasium, catering and business

a proprietary catering unit for office brand COFCO Life (which

conference facilities. These supporting facilities to the office zones

includes office catering, imported goods supermarket, lifestyle retail,

bring added value.

organic farm, etc.), creation of COFCO’s first themed co-working space COFCO Fantasy (which provides a “work-living-leisure and

The above meticulous alterations gave Block C a facelift, turning it

entertainment-fitness” integrated service), and development of an

into a representative masterpiece of green buildings in Beijing. The

office asset management service smart operation platform Coffice

altered COFCO Plaza has a green space ratio of 25%, with the outdoor

Housekeeper to systematically create an enclosed office and living

storm water runoff controlled with integrated ecological rainwater

ecological ring. The 3C model shows the world that the team is not

storage facilities. The interior of the building is fitted with grade

only rich in sincere and creative ideas, but capable of upgrading both

1 water-saving sanitary devices, smart electricity sub-metering

project asset value and market value.

system was introduced, and grade 1 energy-saving lighting is used for all building areas with the communal areas illuminated by a smart

Coffice Housekeeper is absolutely a jewel of the 3C system. It is a

lighting system. The HVAC efficiency is 6% higher than the national

service model based on a smart cloud operating platform with big

standard, outdoor PM2.5 concentration detection and filtering

data and Internet of Things as the skeleton which provides more

systems are installed for the new fan units. The utilization rate of

than 40 services, including express delivery, laundry, application

original components and parts is 100%, while the flexible partitioning

for repair and maintenance, healthy exercise, visitor management,

rate is 78.73%, and indoor fresh wind is higher than the international

legal consultation, food delivery, booking of conference rooms, etc.

fresh wind standard of 30%.

As of year-end 2017, 98% of the building’s tenants had registered as a user of the Coffice smart cloud operating platform; the Coffice

The project is highly commended by domestic and foreign

card offline access rate of shop tenants stood at 80%, and the smart

authoritative institutions for its excellent alteration results and

cloud operating platform application installation rate was more

outstanding contribution to environmental protection. It officially

than 10,000, driving the daily turnover of COFCO Life to more than

received the LEED-CS Gold Pre- certification from the U.S. Green

RMB60,000.

30

COFFICE Card sale trend Unit ‘0 000

COFFICE Card Total sales revenue COFCO Life Sales revenue

180 160 140 120 100 80 60 40 20 0

May.

Jun.

Jul.

Aug.

Sept.

Oct.

Nov.

Dec.

Coffice Card spending from May to December 2017

Furthermore, Coffice Housekeeper is a firewall that protects the building’s safety. When selecting the access gate facility, after conducting a comprehensive research and analysis, the team decided on innovative products which can function both online and offline using a physical card, 2D bar code and remote one-touch door-opening switch. The gate employs the “Entry by Control, Exit by Sensor” method. Users access the premises by scanning the 2D bar code on the Coffice Housekeeper platform. The system conveniences users and significantly increases access efficiency by allowing “unobstructed access within Block C with a mobile phone”.

With this, the 0 to 1 transformation for the asset-light operation of COFCO Plaza was completed. Implementation of the 3C system has led to greater satisfaction of tenants of all three blocks of the Plaza as well as a gradual rise in the Plaza’s building quality and market value. The system received unanimous praise and favourable comments from government institutions and the real estate sector.

Upon commissioning, Block C was visited by 150 delegations with the total number of visitors exceeding 1,000, they include representatives from real estate platforms and the investment fund industry, such as CR Land, Vanke Property, Go High Investment and IDG Capital. For all the property has achieved, Mr Gao Shibin, head juror of the jury for RICS Awards China 2018, said: “Against the broader background of urban regeneration, the project team has given full consideration to whether the COFCO Plaza project is in harmony with the surrounding environment, especially respect for traditional buildings. It serves as a useful example of harmony and old and new buildings co-existing in actual practice.

The sustainability techniques and green building design concepts adopted will have a far-reaching impact on the promotion and development of green buildings and sustainability in the future. It also fully highlights the genuine substance of architectural sustainability, that is, provide users with a relatively high level of comfort while reducing its energy consumption to the greatest possible extent. It is a valuable experience in the application of green technologies and will set an example in visual effects, learning and promotion for the construction of public buildings in Beijing and all parts of China.”

31

Best Practices for RICS Awards China 2018 Winning Projects and Teams

RICS Awards China 2018

CONSTRUCTION PROJECT

Winner Arcadis

Perfect integration of globalization and localization: Arcadis helps BMW complete the world’s most advanced production line

While the outstanding achievements of the winning teams of the RICS Awards China 2018 are still fresh in our memories, assessment of the 2019 event has commenced. The awards have attracted enthusiastic submissions from the real estate and construction industries as usual. In this edition, we will review the winner of the Construction Project of the Year in 2018 – the BMW Series 5 Shenyang assembly plant construction project and the behind-the-scenes enabler which has helped promote the project with excellent project management services.

Completion of BMW’s most advanced production line in Shenyang will help revitalize the economy of the Northeast region As China’s largest foreign-invested industrial project in 2014, the BMW NEX Forward Project – Assembly Plant in Dadong district, Shenyang, is a huge project with a total investment of RMB12 billion, this is auto giant BMW’s first investment of a complete automobile production line in China. Upon completion in 2017, the plant became the production base of Series 5, the 8th generation of automobiles produced with BMW’s latest technology. This symbolizes that BMW has irrevocably transferred the world’s latest production techniques and relocated the most advanced production line to China.

The project was supported by and gained the attention of the Chinese and German governments and industrial leaders soon after its commencement. Officials from governments at all levels, including German Chancellor Angela Merkel, visited the site multiple times. As the largest taxpayer in Liaoning, BMW Brilliance’s plant will make an even greater contribution to the revival of the Northeast economy and alleviate local employment problems by driving development of the upper and lower stream industries as the plant began production.

32

As the only manager of the project, Arcadis provided all-round

¬ Industrial projects involve advanced technologies and have a high

management services, including design management, budgeting

construction threshold. Unlike other construction projects, industrial

and costing, tendering management and procurement, contract

projects place more emphasis on ensuring the performance of

management, business management, construction works, and

process technologies and their related facilities. The technologies

operations and maintenance. The services provided have won

involved and complexity of construction are higher;

BMW’s praise and recognition, gaining Arcadis the first Outstanding Performance Award BMW has given in China in more than two

¬ World’s most advanced automotive production line means

decades, and resulting in BMW directly handing over their new project

more difficulties in construction. The project included a complete

for continuous cooperation. This has enormous significance to both

automotive production line using German automation technology

BMW and Arcadis.

with IT control and robot operation applied throughout the process.

A series of innovative process technologies is also employed, raising the complexity of the construction of plants and supporting facilities as well as project management; ¬ Strict quality standards required by the German owner. Projects undertaken by German companies are known for their strict quality standards. The quality standards set by BMW for this project were some of the highest in the world. Each aspect of the project, such as detailed specifications and building material, had to match BMW’s strict quality requirement, and even subject to third-party inspection and certification; ¬ Multiple stakeholders meant challenges in communication. Due

This project is one of the largest under Arcadis’ management in

to the large scale of the project, long project period and complexity

China. It became the symbol of Arcadis’s success for its scale and

of the stakeholders involved, besides the owner, Arcadis had to

impact, bringing not only financial gains but also enhancing talent

communicate and coordinate with several dozen entities, including

training in the company. With the training they have received by

government departments, designers, service providers, material and

taking part in this important project, many of the project members

equipment suppliers and many construction firms.

have become the backbone of the company’s project management team and are now being put in charge of key projects all over China.

Managing this huge project is a major challenge

Outstanding achievement under intense pressure Despite the challenges and difficulties, Arcadis successfully helped BMW built a large car plant of the highest standard in three years on

The German Industry 4.0 strategy (which includes application of

a piece of wasteland, it was dubbed a landmark project of the auto

state-of-the-art equipment, big data, digital simulation, etc.) and

industry. The plant not only received BMW’s seal of approval, it also

Made in China 2025 is an example of deep engagement. BMW NEX

won several tens of quality awards from national quality institutes

- Forward project is BMW’s largest and technologically its most

around the world, including the coveted Lu Ban Prize, the highest

advanced automotive production line in China. With an area of nearly

honour for construction quality in China. The main achievements

1 million square meters of which 400,000 square meters are taken

include:

up by buildings and plants, the difficulties in project management are imaginable.

Cost and expense control:

33

Best Practices for RICS Awards China 2018 Winning Projects and Teams

Safety management: The highest safety standards were adopted for the project. All safety indicators were fulfilled, there was no major safety incident and a record was set with 10 million safe working hours.

Customer satisfaction: Arcadis’s efforts were rewarded with highly favourable comments from the owner. “What we dared not believe two years ago came Before commencement of the project, the German side estimated

true, and it can only happen in China!” commented Juergen Eder, the

that the cost of the project would be US$0.42 billion. Through

project general manager.

meticulous calculations and without changing the scope of work, the Arcadis team controlled the final cost to within US$0.32 billion,

Praise from BMW is the highest compliment for the Arcadis project

saving 24%! This was done through systematic management and

management team’s hard work, it also represents the German auto

integrated central tendering; none of the 22 main contract packages

industry’s recognition of the Chinese engineering and construction

exceeded their budget.

industry.

Cost estimation: Due to the effort of the Arcadis team, the accuracy of the budget estimation was within 5% of the final cost of the project - an excellent result which no other consultancy has been able to

From outstanding to excellent, innovation is the key

accomplish.

To deal with BMW’s innovative techniques and satisfy its stringent Work progress management:

requirements, Arcadis employed many innovative technologies in

Arcadis overcame various difficulties and unforeseen incidents and

the construction process, such as the patented collapsible remote-

successfully helped the project met all important deadlines. The

controlled mobile ultra-high industrial plant operation technology,

12-month closedown? (capping the roof within 12 months?) of the

anti-static epoxy self-levelling floor method, two-tier steel mesh

130,000-square-meter main assembly workshop broke the previous

vibrating beam for levelling cast-in-situ concrete construction

best record for BMW plants.

measure, etc. Furthermore, Arcadis adopted unique management methods for all stages of the project, which helped the team to build on its previous success in management to reach a new level of excellence.

Quality management: The quality management system which Arcadis developed for this project is seen by the owner as a suitable benchmark for similar projects and was applied to other BMW projects around the world. For example, the quality system for the project was adopted for BMW’s project in Mexico during the same period.

34

Innovative management approach: In response to the project

for the tendering to arrive at a central tendering and assessment

characteristics, including large scale, complex technology, multiple

process. The work interface was specified in the tender document

participants and mutual constraints and influence, Arcadis adopted

compilation process to ensure there was no duplication and omission

a combined central master control and regional integration

for the scope of work of the sub-contractors. This ensured that

management approach. The project management team could carry

the contractors correctly understood the owner's requirements,

out assessment and analysis of the project progress system and

maximising benefits to the owner.

dynamics at any time as needed, so corresponding measures could be adopted promptly to solve any issue that arise. For example, in

Work stage: Taking into consideration the project’s characteristics

order to avoid the project’s large scale exerting pressure on short-

and the German side’s strict quality standards, Arcadis worked with

term regional material supply, affecting work progress, Arcadis

the owner’s team, supervisors, work team and the consultants to

gave guiding instructions on regional material supply to the main

BMW to form an integrated management team. The project adopted

contractors in different regions.

all-round, 3D-management, all the components and details were implemented with each issue placed under a specific management

Pre-project planning and design stages: To ensure that the German

system.

side’s conceptual design fully satisfied Chinese design and work standards and the Chinese side’s detailed design fully embodied German design concepts, Arcadis organized joint review sessions for the designs when certain milestones were reached (30%, 60% and 90%). This fulfilled the need for seamless technical connection for the entire process. In the design, 3D models were first employed

Guarantee for success: team cooperation and personnel stability

for refined management of the spatial space. Dynamic simulation analyses were conducted for all pipeline systems, avoiding the risks under the usual experience- based practice, which increased the efficiency.

Budgeting in the early design stage: As the project has a broad scope and involved many contracts, the project management team joined with the Shenyang office to form an expenditure control management team to categorise the project contracts appropriately for the best possible division management. Furthermore, the contract framework mode for civil works and the main mechanical and engineering contractor plus specific professional sub-contractors were employed and the budget and base tender of each contract package were estimated with great accuracy. As a result, the final contract value

In order to complete this highly challenging task, Arcadis deployed

and budget price were very close.

nearly a hundred of its employees to form a strong project management team which included 86 resident site staff when

Tender stage: Arcadis integrated BMW’s mandatory global standard

the project was in full swing. Overseeing the team was Arcadis’s

requirements for procurement and consulted extensively with

managing director with strong technical support and resources from

the owner and Shenyang government departments responsible

its headquarters in Europe and the Shanghai head office to ensure smooth progress of the project. In the meantime, the company’s Project Management Department and Budget Management Department closely cooperated in budget management and expenditure control, boosting progress with half the effort. Taking into consideration the enormous size and large number of divisions of the project, Arcadis implemented the mechanism of resource sharing and mutual personnel deployment and support within the project team.

During the four years from 2013 to 2017, each member of Arcadis’s BMW project management team experienced strong professional growth as the project progressed. They accumulated valuable experiences and developed systematic procedural archives for

35

Best Practices for RICS Awards China 2018 Winning Projects and Teams

industrial project management through summarising and induction of project data. They become valuable assets of the company and also nurtured talents for the firm. Mutual cooperation between team members brought about a good working environment and helped maintain a high stability of the team during the project. The exceptionally low turnover rate gave strong assurance to the success of the project.

Future path for project management in China: Integration of internationalisation and localisation Success of the BMW Shenyang project has a positive influence on China’s project management industry. Not only does it show unequivocally that Chinese project management teams are capable of completing international projects with the highest quality and standard while serving world-class customers, it also is a sample project for reference.

Mr Gao Shibin, head juror of the jury of the RICS Awards China 2018, has high praise for Arcadis’s excellent performance and outstanding achievements in the BMW Shenyang project. He said, “Without doubt the success of a project requires the effective cooperation of a mix of different factors in various aspects. In particular, the core functions of project management are resource coordination and overall control, this is especially important for large projects. The BMW project is a great challenge to management with its scale, impact and technical complexity. In the project, Arcadis showed its stringent requirement, professional attitude and sophisticated expertise. It set strict requirements for detailed operation of all components and proposed solutions and precautionary measures for common issues and risks based on its rich experience. At the same time, Arcadis applied international standards and management concepts and integrated them with local management approaches and methods. By leveraging the strengths of Chinese and Western styles and complementing the weaknesses, the efficiency and effectiveness of project management were significantly increased. This is a role model which all industries and companies should learn from and promote.”

36

RICS Awards China 2018

COMMERCIAL PROJECT

Winner

Arcadis

A 10-year project – Why the grand prize went to Raffles City Hangzhou

As the selection process of the RICS Awards China 2019 moves full steam ahead, memories of the 2018 winning teams and their outstanding achievements are still fresh in our memories. This edition will review last year’s winner of the Commercial Project of the Year – Raffles City Hangzhou and Arcadis, the behindthe-scenes contributor.

New Hangzhou landmark created in anticipation of changes in real estate Many changes have taken place in the Chinese real estate industry in the last two decades, the most important was the shift from positioning commercial properties based on a plot of land’s past experiences to one centred on big data analysis. Appropriate construction and a new mode of integrated online/offline retailing have become the new foci of commercial properties. In other words, commercial property development must more precisely meet the needs of its surrounding community and at the same time apply integrated online and offline data to guide precise market segmentation and positioning. On the other hand, users’ requirements and the market for commercial properties have changed, there is a growing demand for business opulence, product diversification, one-stop and convenient services.

37

Best Practices for RICS Awards China 2018 Winning Projects and Teams

Raffles City Hangzhou was developed to commemorate the 20th

City Hangzhou was more than 95%, with units in the office tower and

anniversary of world famous real estate developer Capitaland’s entry

apartments nearly all sold. The boutique apartments were so highly

into Mainland China. The massive commercial complex was designed

sought after that all units were sold out within one week of them

ten years ago taking into consideration future market trends from

being made available, the return on investment vastly exceeded

development and operation perspectives. It was built as a Hangzhou

expectation;

landmark and has served as a benchmark of success for the real

• For the investment and financing models, despite the long

estate industry through the firm’s exceptionally strong operation

construction period, Arcadis helped Capitaland control the projected

capacity and accurate grasp of the market.

investment to within the initial cost estimation range, an outstanding accomplishment for a commercial complex project;

Raffles City Hangzhou is located in Qianjiang New Town in the heart

• The project will attract more customers to the CBD of Qianjiang

of the central business district. The complex occupies an area of

New Town when it is connected with Line 4 of the Hangzhou Metro,

more than 400,000 sq. meters, accommodating different businesses

positively impacting the economy of the vicinity;

in its different zones. It is a sustainable urban hub for living, working

• Raffles City Hangzhou is already being compared to the Mixc Mall,

and leisure which comprises stylish shopping malls, world-class

the complex will become the new landmark of Qianjiang New Town,

super Grade-A offices, a 5-star Conrad hotel, Ascott Raffles City

enhancing the overall image of Hangzhou.

elegant serviced apartment and boutique apartments. The project has attracted a high level of attention of tens of thousands in the

During the 10-year service period, Arcadis has maintained a high

industry from the day the concept was proposed.

quality and standard for its services. Not only did it help Capitaland to create the prestigious landmark Raffles City Hangzhou, it also serves as a role model of successful cost control for the industry.

Arcadis’ 10 years of continuous effort highlights the value of professional cost management As Capitaland’s strategic partner in the Mainland market, Arcadis provided whole process cost management consultancy services for five of its seven large commercial complexes. For Raffles City Hangzhou, Arcadis provided quantity measurement services from pre-development to completion of the project, including predevelopment cost estimation, tendering, dynamic cost management in the post-contract stage and completion settlement.

Arcadis received the well-deserved Commercial Project of the Year in RICS Awards China 2018 for the eye-catching project. Mr Gao Shibin, head juror of the jury, remarked: “Raffles City is a landmark among newly completed buildings in China’s commercial real estate market.

The complexity of construction technology, ultra-long construction cycle and ever-changing construction industry environment in China brought with them great challenges in cost control. As the cost management consultant, the Arcadis team demonstrated professionalism and excellent problem-solving capacity to ensure successful completion of the project. They not only applied RICS professional standards and values, but also provided a valuable example and collected very useful data in the many facets of project management for the entire industry and market.”

With Arcadis’s efforts and support from all parties, Raffles City Hangzhou was successfully delivered in early 2017, fulfilling the goals of the design and planning.

• The occupancy rate of shops in the shopping mall zone of Raffles

Arcadi overcame unprecedented difficulties in managing the high-end project with 3D equilibrium Raffles City is designed by Ben van Berkel, chief architect of Dutch architecture firm UN Studio. The entire building standard follows the LEED gold Pre-Certification criteria of the U.S. Green Building Council (USGBC). It is the first commercial complex project in Zhejiang province to follow the said criteria and one of a small number of commercial complexes in China equipped with 3D curtain walls, which presented immense challenges to the construction and cost management.

1. The distorted form of the façade meant a curtain wall system that greatly deviates from those of regular projects. The difficulty

38

the project’s contract terms, laying a solid foundation and contract framework system for the international character of the project.

Secondly, taking into consideration the rich variety of businesses and complex tender phasing of the project, Arcadis developed work interface tables jointly with the Project Division and designers in the tender stage, employing innovative methods such as contract setup and 3D tendering models for more effective cost control.

Further, when unforeseen events during the construction (such as government interventions in the Hangzhou construction market and G20 summit) caused a delay in the delivery of the project and its of building conventional skyscrapers lies in the height of these buildings, on the other hand, the glass panes used in this project are curved and of different sizes, requiring installation at different angles

resultant claims, not only did Arcadis help the owner handle the case according to the contract, it also assisted in business negotiations to minimize the events' impact on the project and the owner’s loss.

to achieve the desired effects; 2. There was no standard floor, floor slab size, or die size, nor was there a normal construction positioning angle or height for the curtain wall edges and roof wind columns. In order to meet the

Two - p r o n g e d s t r a t e g y : t e c h n o l o g i c a l innovation and a new management approach

requirements for curtain wall installation, additional hurdles in coordination between civil works EPC and curtain wall contractors

The Raffles City Hangzhou project is also a masterpiece that

had to be overcome;

combines first-rate design concept and technological innovation

3. The overall construction cost was higher than those of normal

which exploits BIM technology to the fullest. The irregular forms

projects due to the above challenges and there was an absence

of the structure and complexity of the commercial complex

of benchmark references, coupled with keen competition in the

project gave rise to conflicts between design drawings of different

tendering process in China, this made project cost management

disciplines and the work interface, without adequate control, there

enormously difficult.

would be a higher probability of changes in the later stages of the contract. BIM technology was more extensively applied in the design

As the project consultant for cost control and contract management,

and works interfaces, through advanced control and supervision, the

Arcadis’s greatest responsibility was to promote equilibrium between

integrity and compatibility between the tender stage drawings and

quality, progress and construction cost throughout the construction

work drawings in the subsequent stages were raised significantly.

period from the perspective of investment management.

As estimated by the designers, extensive application of the BIM technology reduced changes by 5% to 10%.

Firstly, because of Capitaland’s background as a foreign investor and

Furthermore, the innovative management methods which Arcadis

taking into consideration its operation experiences, the different

employed in the project included:

international consultant entities and large Mainland contractors

1. Early intervention: Arcadis intervened early in the design stage to

to be appointed for the project, Arcadis advised the customer early

achieve a higher synergistic efficiency working with the design team,

in the project to adopt the internationally applicable FIDIC text as

better investment and risk control were achieved through comparing

39

Best Practices for RICS Awards China 2018 Winning Projects and Teams

alternatives, optimization of designs and value engineering studies.

2. Risk-reorientation: In the tender stage, the owner’s requirements, design standards, project construction work requirements and contract requirements were knowledgeably sorted into clear and

Putting professional values and RICS standards into practice and providing a benchmark for the industry

integrated tender requirements so criteria were provided to greatly reduce the disputes that might arise in the subsequent construction.

Arcadis has been carrying out its professional missions of whole

3. Dynamic control of costs: Changes in costs from the proposal

process cost control and contract management since entering

stage to final delivery were systematically controlled dynamically

the Chinese market more than 20 years ago. It is the first batch

throughout. Risk reminders were sent to the owner in advance,

of companies in the Chinese market to embrace the concept of

control was enforced during the construction and assistance was

whole project cost consultation, in particular high-end commercial

provided to the owner in the subsequent business negotiations.

developments and complex projects. Such a concept is consistent with the high professional standards which RICS has set for quantity measurement as well as the application of RICS systems in China.

They are manifested in: First, as an independent third-party consultant, Arcadis has reasonably spread the project risks based on the principle of equality and fairness while ensuring independent professional values. This is the concept which RICS has always advocated and practised.

Second, helping a decade-long project to successfully meet the cost control standard developed 10 years ago when the project was first launched is a full manifestation of the professional values promoted

by RICS and Arcadis. Delivery of the project in a professional manner had impacted the market and industry, further promoting professional values.

In order to offer premium services to the customer, Arcadis adopted the service mode of “Support from Shanghai Head Office + Team work from Hangzhou branch + on-site coordination”: ¬ Completion of pre-development estimation and tendering with the huge dataset and human resources of the Shanghai Head Office, laying a solid foundation for the project and raising the chances of success; ¬ The company’s Hangzhou branch was located in the same area as the project, this arrangement facilitates the provision of postdevelopment service and prompt on-site communication, the onsite team was able to keep abreast of the latest development of the project. The staff had first-hand knowledge of the project situation and could meet the customer’s needs immediately in case of an

In the meantime, the Raffles City Hangzhou project has enabled

emergency;

Arcadis to gain ample experiences in developing and sorting out contract systems for complex commercial projects, and dealing

¬ The Shanghai office participated in auditing the final accounts

with contract issues and complicated compensation problems.

of the project, verification and supervision by the Head Office

It has also been an excellent training opportunity for the team

management ensured the customer received quality services until

members; through sincere cooperation and active coordination, the

the end of the project.

team members gained valuable and hard-won project management experience; all of them had their individual expertise enhanced. This

In vertical management, the project directors were deeply involved in

project also sets a good example for commercial real estate projects

the approval of pre-development estimations, tendering and bidding

in China and serves as a useful benchmark reference for project

plans, evaluation of the tenders, handling and business negotiations

management, including design, construction and costs.

regarding major changes and claims in the late work stage.

40

RICS Awards China 2018

RESIDENTIAL PROJECT

Winner Shui On Land for Lakeville Luxe, Shanghai

Uniqueness born from multiple bold trials

How to create the best product for customers with the land available is one of the most pressing issues developers face due to dwindling land resources and tightening government policies in China. In 2018, a high-end residential project in the CBD of Shanghai caught the imagination of the market and customers with its unique awareness of customer needs and design concepts. The project is Lakeville Luxe developed by Shui On Land Limited, winner of The Residential Project of the Year at the RICS Awards China 2018.

1. Precise positioning is the key to success in the challenging macro environment In recent years, the Chinese government has not relented on its close watch on property prices and land resources. A series of market cooling measures was introduced, and developers became more prudent before developing a piece of land. The Lakeville team considers Shanghai’s position as unique in China, not only is it home to a large group of wealthy people, but it is also a regional and international financial, cultural and business centre. Through research and analysis of the affluent group who is active in Shanghai, the Lakeville team realized that this group has the intention to further improve their living condition and upgrade their home. Besides this, they also have a strong awareness of the need to diversify their assets.

With such findings, the Lakeville team decided to create a high-end residential product based on the marketing strategy of “precision land use”, which is designed to make the property stand out in the highly competitive market with the best product and supporting services.

2. Phase 4 standing on giant’s shoulders Lakeville Luxe is Phase 4 of Lakeville, the high-end residential community included in the New Shanghai Xintiandi master plan. Encouraged by the marketing success of Phases 1-3 and taking into account the fact that the new phase targeted younger residents, the team placed great emphasis on customized renovation of interiors and took relevant measures in design, services and marketing. Taking this step is not easy as it meant greater input

41

Best Practices for RICS Awards China 2018 Winning Projects and Teams

of energy and a higher investment to meet different personalised

The Lakeville Luxe project team consisted of top professionals in their

needs.

respective fields who devoted themselves to this luxury development: ¬ Architectural design team: P&T Group, the legendary architectural

In exploring this kind of innovative mode, the Lakeville team piloted

and engineering practice which designed many of the classic

customized services for the 18 units of The Manor in Casa Lakeville,

buildings that still stand on the Bund

Phase 3 of Lakeville, gaining the team sound operation experience

¬ Chief interior designer: Ms Hui-Ling Hsieh, master neo-aesthetic

for Phase 4. The team was able to take even better care of the

private home designer

customers in the full lifecycle management of the residential project,

¬ Lighting consultant: BPI, the US lighting design firm responsible for

it is a product that would give residents great satisfaction.

lighting the Statue of Liberty ¬ Acoustics consultant: SM&W (Shen Milsom & Wilke) the acoustics planning consultant firm with landmark buildings in different parts of the world as its clients ¬ Smart systems: ABB, a global leader in smart automation

Phase 1 of Lakeville

Lakeville Regency, Phase 2 of Lakeville

Casa Lakeville, Phase 3 of Lakeville

technology

Lakeville Luxe respects the personality and preferences of each family and appreciates that each resident wants to lead a different lifestyle. In response to luxury property purchasers’ requirements in space, style and materials, four different customization concepts were introduced: style customization, layout customization, fit-out building material customization, and special units that are 100% customised according to the owners’ requirements. This level of customisation has become the new benchmark for Shanghai's topend residences.

The following excellent results were attained by the Lakeville Luxe project through close collaboration with the entire team and

Through ongoing review and evaluation in the first three phases, a

achieving breakthroughs by leveraging their expertise:

comprehensive one-stop service is provided for Phase 4 covering services such as flat inspection booking, moving in, buying and

Multiple community security system provides an unrestricted and

leasing and apartment maintenance. The service team strives

worry-free living environment

to provide all-round convenience to customers and hopes the

All-round professional security of the private area is ensured by

experience of the service provided throughout is a flawless one:

facilities, including smart carpark management system, digital TV

¬ Inspection for occupancy: This includes verification of the overall

surveillance system, electronic railing system, electronic patrolling

operating environment, data organisation and management, and

system, infrared/microwave detecting devices, access control

verification and management of the apartment to be occupied

system and emergency alarm buttons.

¬ Delivery service: Advanced booking and management of delivery service, on-site environmental management, home use tips, and

Security system diagram

follow-up on service improvement ¬ Residential services: Community safety and security management, management of community maintenance work, advanced booking and customization services, secretarial services, management of community environment, residents’ club services, household services ¬ Leasing services: Leasing, rent collection, rent consultation, facility management, housing maintenance, renovation consultancy ¬ Re-sale services: disposal of assets, re-sale of facilities, transfer of property rights, after-sales services

Creating ideal living dimensions through spatial innovation Starting with the most basic architectural elements, persisting with

3. Elite team of professionals creating a top-class residential product, with special attention given to every detail to create the ultimate in luxury living

42

the quest for enhancing every possible detail and seeking of comfort by optimising every square inch of floor space. ¬ Effectively expands the functional interior space by replacing traditional thermal insulating walls with external ones ¬ Better lighting and ventilation with windows that span nearly 8 metres in the sitting room of some of the standard apartments

¬ interior floor to ceiling height of 3.3 m, defined as a comfortable

your own personalised routine

dimension for living space for humans

¬ provide all-round protection for homes by integrating household

¬ Underground space with a net ceiling height of up to 3.15m,

protection and auto requests for help, including break-in prevention,

accommodating large home-removal trucks

emergency alerts and real-time inspection to ensure a safe home environment

Realising natural comfort through innovation from architecture to residence Following the principles of architecture design, the overall thermal structure is optimized with multiple 3D heat insulation protection

4. Paying attention to all decoration details and promoting green life

layers from outside to inside, creating a comfortable multidimensional indoor environment, which also helps to realise

Although situated in the heart of a bustling city centre, Lakeville

sustainable development concepts, including greater energy savings

has emerged as an oasis in a metropolis, especially with its green

and environmental protection.

living concept which is manifested in every detail of the project.

¬ External thermal insulating system effectively saves energy; porous

In the construction stage, high-performance concrete and high-

fibre wall structure improves permeation

strength reinforcing steels were used. For example, HRB400 or above

¬ YKK LD60 doors and windows and low-e tempered vacuum glass

rebars represents approximately 74.4% of the main rebars, resulting

effectively limits heat radiation of the interior background in summer

in savings of about 16.7% in steel material compared with using

to ensure a more comfortable and constant indoor temperature

HRB335 rebars. Furthermore, various energy conservation measures

¬ Daikin central air-conditioning system utilises DC inverter

are promoted, including refuse treatment, rainwater collection,

technology to provide rapid and precise control of cooling and

sufficient charging points, efficient electric and mechanical devices

heating temperature, and control sensors, PIR sensors and ground

and energy-saving illumination system to promote a green lifestyle

sensors for a more comfortable air delivery

and encourage owners to cooperate with the estate management to create a comfortable living environment.

Creating a home comparable to a 5-star hotel by tapping the expertise of a professional acoustics consultant Famed acoustics consulting firm Shen Milsom & Wilke was invited to join the project team and applied a ‘5-star hotel’ sound insulation standard to the residential project. Customized acoustics solutions were applied to elevator machine rooms, outdoor airconditioning system, same level drainage, partition walls and door/ window systems to reduce noise from the building, electrical and mechanical equipment and pipelines, achieving a five-star hotel Green living diagram

air sound insulation design standard. Lighting was by world-class lighting consulting firm BPI. Based on the principle of ‘a world of light and shadow casting no visible lights’, tailor-made lighting solutions for landscape illumination, building illumination, basic

5. Detailed planning of “Residence, home, life”

lighting and functional lighting, creating a well-lit and balanced living space by mixing lights of different levels of brightness and colour

A family residence is the greatest investment in a person’s life. The

temperatures.

Lakeville team intended to create a residence not only for living, but also exemplifies an extraordinary quality of life, and provide whole

Custom-built smart living solution for the family with all-round

families with the greatest possibility for long-term planning. To this

household protection

end, the Lakeville team customized a large number of high quality

the most advanced smart systems from ABB is chosen, with the

amenities for Lakeville Luxe centring around two main themes:

option to add more smart household products in the future. The

“Home” and “Life” which match the high-end positioning of the

smart living system is tailored to fit the living habits of each family’s

product and at the same time filled with deep humanistic substance.

individual growth cycle: ¬ Comprehensive smart home system that includes smart lighting,

Renowned artists created “water” themed art pieces and decorations

electronic curtain, central air-conditioning, floor heating system and

for the East and West Clubs and secret garden of Lakeville Luxe to

background music

create artistic ambience for the community.

¬ Wireless remote control system that allows real-time management of electrical appliances, anywhere, any time

Unlike traditional clubs, Lakeville fully understands the discerning

¬ Custom-made timing mechanism for smart household equipment

taste of its high-end residents, the club is segregated into an

according to a family’s living habits, removing constraints to setting

active and passive wing to give residents the highest quality of life

43

Best Practices for RICS Awards China 2018 Winning Projects and Teams

Lakeville Gallery salutes quality lifestyle

Living with Art, an art exhibition by Matthew Liu, 2015

Since 2015, Lakeville has been cooperating with Debrett's, the “Waterfall” by digital media artist Zhang Zhoujie

“Shikumen” by contemporary artist Shi Jindian is a rearrangement of used materials from a relocated house

“Water in Dripping”, a large sculptural piece by contemporary new generation artist Zheng Lu, percolates into each corner of Club e

centuries-old authority on British etiquette. Royal etiquette coaches were employed from the UK to upgrade the mission and service standards of the service team. Co-organised events were also held, such as the Debrett's Teenage Elite Summer Camp in

a residents’ club can offer. The elegant and lavishly decorated West

2017 and Nanshufang Chinese Studies Summer Camp in 2018,

Club offers the perfect setting for entertaining guests, friends and

which emphasised both Eastern and Western cultures. These are

relatives while the East Club, with its emphasizes on nature, is ideal

opportunities for owners to experience ‘noble’ culture which has been

for those who treasure their private moments and enjoy a healthy

passed down from ancient times and will shape the next generation

lifestyle.

of Lakeville residents.

A planting activity for children held in the community in Spring

Floral art class for ladies of the houses taught by international floral master

Teenage Elite Summer Camp organized by Debrett's, the centuries-old authority on etiquette

A series of charity activities jointly organized with the Luwan Aided Learning School

The Greet the Guests Fountain gives residents and guests a sense of home coming

Comments on the Lakeville Luxe project by Mr Gao Shibin, head Magnificent lobby with a 9-meter ceiling

Luxurious private dining facility offers guests an exclusive and cordial banquet experience

juror of the jury, left a deep impression: “Personalized design in architecture is one of the factors that give it sustainable vitality,

Lakeville has cooperated closely with world-famous designers and

especially residential buildings. Right from the planning and design

artists from its Phase 1 project. The estate has sought the most

stages, the Lakeville team has considered issues from the users’

avant-garde artworks in its exhibitions and worked tirelessly to

perspective, paying special attention to every detail of each function

communicate a global high-end lifestyle through organising different

and how they can be improved. Technology is employed appropriately

kinds of cross-disciplinary, charity and parent-child activities. A

to create visually pleasing, comfortable and exclusive products. What

series of events, Lakeville Series|Hers, LakevilleSeries|His, Lakeville

is so special about the Lakeville project is its successful application

Series|Legacy and Lakeville Love, were held to create an artistic,

of personalized design concepts which allow users to enjoy and fully

tasteful and warm community for all owners.

experience during use.”

Lakeville Gallery salutes quality lifestyle

44

Living with Art, an art exhibition by Matthew Liu, 2015

RICS Awards China 2018

BEST DEAL

Winner

JLL

Foreseeing stage 2.0 In the coworking space market, JLL pulls strings for WeWork

¬ China Overseas International Center; leased area: 27,000 square metres ¬ Lujiazui Fuhui Square; leased area: 15,000 square metres ¬ Zhongchuang Building; leased area: 9,400 square metres ¬ Kerry Parkside; leased area: 7,400 square metres ¬ International Trade Centre; leased area: 6,000 square metres It may not occur to you that these office buildings with a total floor space of 64,800 square metres and located in Shanghai CBD are leased by WeWork, a world leader in space, service and community. Leasing these five office locations has not only made WeWork the largest tenant in Shanghai's office rental market, but also made front-page headlines by setting market precedents and breaking many new records.

The first company to lease an entire Grade A office building for co-working space: WeWork's two transactions involving China Overseas International Center and Lujiazui Fuhui Square are the first time in China a co-working operator has leased an entire Grade A office building with a floor space of more than 10,000 square metres.

The largest transaction in Shanghai's CBD office market and WeWork's biggest project in Asia: The take-up of the entire China Overseas International Center (Block B) in Huangpu District measuring 27,000 square metres in office space is the largest single transaction in Shanghai's CBD office market. The building is WeWork's biggest project in Asia Pacific and houses its Asia Pacific headquarters.

Sun Hung Kai Properties Ltd. and Kerry Properties Limited to introduce co-working space for the first time: The International Trade Centre and Kerry Parkside, developments by Sun Hung Kai Properties Ltd. and Kerry Properties Limited respectively, will be their first coworking space projects in their global real estate portfolio.

As Mr Gao Shibin, head juror of the jury at RICS Awards China 2018 said, “Facing brand new office business models, unprecedented leasing transaction sizes, the complexity of multiple on-going projects and a lack of precedents and prior industry experience, JLL applied its firm grasp of future office trends to conduct in-depth analysis of the office rental market and to offer professional, first-class services, creating precedents in the co-working

45

Best Practices for RICS Awards China 2018 Winning Projects and Teams

space leasing market. These representative transactions reflect the new trends in the co-working space market and demonstrate the important role played by professional service companies, as one of the market participants, in instigating reforms in the industry.”

JLL helps property owners accept co-working space business ecology by combining theory and practice The property owners in this series of transactions include China Overseas Property Group Co., Ltd., one of China's largest state-owned developers, Shanghai's biggest state-owned property owner Lujiazui Group, leading foreign developers Sun Hung Kai Properties Ltd. and Kerry Properties Limited and Nantong City's private business Jiangsu Aaron Group Co., Ltd. As co-working space was rarely found in Grade A office buildings, some of the property owners were unfamiliar with this new business model and had difficulty accepting this idea.

entire commercial real estate projects. For JLL, actions speak louder than words: they have studied the operation models of co-working

Combining theory and practice, the JLL team helped both the

space, in the hope of leading the property owners, tenants and co-

developers and property owners gain new perspectives on the

working space operators to a three-way win-win situation.

traditional values of office buildings and successfully assisted them to embrace the idea of co-working space office. They presented to the property owners new development trends in the co-working space business with detailed market research and analytical data.

As the co-working space business entered its 2.0 stage, the market

JLL closes the transaction by effectively managing the differences in expectations of both parties

demand for flexible office space continued to surge, and innovative office strategies were becoming increasingly attractive to large

Because the business and operation model of co-working space

business tenants; it was expected that by 2030, flexible office space

have certain peculiarities, some of the core business terms WeWork

(including serviced offices) would encompass 30% of the whole

requested deviated from the prevailing market management. In

Grade A office market, hence office building owners need to be aware

addition, as the buildings in the transactions were all premium

of this market trend and capitalise on the emerging opportunities.

properties in Shanghai's core districts, the property owners generally had expectations of high investment returns.

On the other hand, the importance of co-working space to commercial real estate is emphasised: With tenants’ diverse office

Because the business and operation model of co-working space

requirements, co-working space would become an important part

have certain peculiarities, some of the core business terms WeWork

or “standard facility” in commercial real estate projects, similar

requested deviated from the prevailing market norms, such as

to today's food and beverage services. As a result, tying up with

the relatively lengthy leasing periods or more favourable rentals.

premium co-working space operators would help boost the value of

In addition, as the buildings in the transactions were all premium properties in Shanghai's core districts, the property owners generally had expectations of high investment returns.

Flexible Office Inclusion Rate (%)

2016

2018 Q1

2020 (forecast)

With market foresight and first-class business negotiation skills, the JLL team successfully closed the transactions smoothly with both parties fully understanding that the deal was beneficial to their long-

serviced office co-working space

term core interests: For the property owner, JLL adopted the appropriate strategy, selected the right moment to negotiate and managed the pace of the

Source: JLL *The study results were based on the average percentages in 20 Chinese cities (The total number of Grade A office buildings with flexible office space VS all Grade A office buildings); some of the projects in the study had co-working space and serviced office space.

46

negotiations so that the owner was able to make a trade-off between short-term return and long-term, stable rental income. The owner also became fully aware that high-quality clients could bring long-

term, stable rental income, and a favourable lease could increase

Since then, JLL has deepened its research into the co-working space

property value.

market, publishing related themed reports each year. It continued to lead the market's development trends and launched a dedicated

Turning to the tenant, JLL assisted WeWork to objectively and

model for its global forward-looking research “Future of Work”. In

professionally sort out and conduct in-depth investigation into the

early 2018, JLL once again revised its estimates for the co-working

target property's values while providing the client with important

space market by pointing out that China's co-working space market

strategic suggestions on items such as the cooperation framework

had entered stage 2.0 and would continue to grow, specifically this

and transaction model. In consideration of factors including the rarity

would be manifested by four major trends:

of the project, the potential scale effect and market influence, in the end, JLL recommended WeWork lease the entire Tower B of China

¬ The scope of expansion has widened and begun to spread to 1.5-tier

Overseas International Center.

cities; ¬ Market requirements have diversified and are increasing, and a

Foresee future office trends and lead stage 2.0 of co-working space business

growing number of large companies are paying attention to and using co-working space; ¬ More and more property owners and developers are participating in the co-working space market;

Founded in 2010, WeWork is the world's largest start-up by market

¬ Industry consolidation has begun, with operation capabilities

valuation and currently has 283 offices and 253,000+ members in 75

becoming a core competency.

cities located in 22 countries around the world. WeWork established its first Asian office in Shanghai in July 2016 and has subsequently expanded rapidly across the country. To date, WeWork has a total of 24 locations in Mainland China, including 13 in Shanghai. WeWork has always treated Shanghai as its major market in China, the company plans to create 20,000 positions by end of 2018.

As WeWork's significant strategic partner in China, JLL has offered great assistance to WeWork in its expansion across the Chinese market. To date, WeWork has closed 10 leasing transactions of coworking space through intermediaries, including nine where JLL

With its sharp market insight and forward-looking research

acted as the tenant’s representative. JLL has become one of WeWork

analyses, JLL has not only assisted WeWork to move into Grade A

China's most trusted and important partners.

office buildings, but also offered theoretical bases and benchmarks for the industry and market development alike. Owing to its active

In addition to WeWork, JLL has developed deep cooperation with

contributions to the development and reform of the co-working

major brands in the co-working space market. In 2017 alone, it

space market, the Best Deal of the Year it received at the RICS

helped these major operators lease office space in Shanghai totalling

Awards China 2018 is most deserved.

more than 70,000 square metres–leading the industry by both the scale of transaction and quantity.

JLL has for many years built its credentials in the co-working space sector, it foresaw the market's future trends early and firmly seized the opportunities from the development trends.

In as early as 2015, when co-working space was still in its infancy, JLL acutely sensed the market trend and arranged an executive trip to visit WeWork's founder and senior management in its US headquarters to learn about the business models and specific requirements for co-working space, laying a solid foundation for subsequent business development.

47

Best Practices for RICS Awards China 2018 Winning Projects and Teams

RICS Awards China 2018

BEST DEAL

Winner

CBRE

CBRE brokered the sale of Hongkou SOHO for RMB3.6 billion in just 100 days

While the splendid RICS Awards China 2018 gala evening has passed, the magnificent achievements of the award-winning teams and projects are still fresh in the minds of members of the industry. To allow people in the industry to gain a deep understanding of the outstanding performance of the awardwinning teams and projects and its reference values for the entire industry, we have launched RICS Awards China 2018 - Best Cases as a special tribute to their achievements. Through interviewing the head juror of this year’s jury and different award-winning teams’ leaders, inside stories of the RICS China Awards this year are revealed; this is to promote advanced industry experience and best practices which would promote fast and healthy development in the sector.

The RICS Awards China 2018, with 11 award categories, attracted nearly 100 teams / joint teams. After a rigorous selection process and scoring by the jury, 17 emerged as winners, including 12 who were declared joint winners as they received the same marks. In this issue, we will present in detail CBRE’s China investment and capital market team which received the Best Deal of the Year Award for its role in the Hongkou SOHO project.

Market leader in commercial property en-bloc transactions China’s commercial property investment market has matured in recent years, with largescale en-bloc property transactions setting one record after another. Starting from less than RMB 100 billion in 2015, the total national transaction jumped to RMB 180 billion in 2016 and exceeded RMB 200 billion to reach RMB 230 billion in 2017 – the growth was exponential. The performance of tier-one cities was particularly outstanding, led

by Beijing and Shanghai, they trounced the whole nation in the scale of transaction and activity, nearing and sometimes even exceeding major markets in Asia Pacific. Offices are still the most sought after type of property for investors, accounting for over 50% of total property transactions; among which core value-added office properties benefiting from urban renewal have in recent years captured investors’ attention. Under government policy guidance, long-term rental apartments are another popular investment option.

48

As domestic institutional capital has entered a period of building

Plaza located in Pudong, Shanghai in 2016, CBRE continued to

their portfolio of commercial property stocks, it is expected that in

leverage its business advantages to assist SOHO China to complete

the next several years, approximately RMB 1 trillion will gradually

another large transaction (Hongkou SOHO) within a short period.

flow into this segment, signifying that there is tremendous growth

The development is strategically located in the well-established

potential. According to CBRE’s annual flagship white paper, Greater

commercial area on North Sichuan Road adjunct to Shanghai Metro

China Major Report - Borderless: China Capital Market Report 2018,

Lines 10 and 4. Designed by renowned architect Kengo Kuma, the

the investment market has no absolute boundaries in cities, locations

property, a complex with offices and commercial spaces, has a

and utilisation, future investors will attach more importance to

total construction area of around 90,000 square metres of which

diversifying their selection of destination, location and property

approximately 70,000 square metres is rentable area. The property

category for investment, with niche markets such as senior housing

has received gold LEED certification and is the most prominent

and care, healthcare properties and data centres continuing to

environmentally friendly Class A office building in the commercial

attract attention.

area on North Sichuan Road. At the time of sale, Hongkou SOHO was almost fully let, with many quality tenants including Panasonic Corporation, China Pacific Insurance Co., Ltd. and SOHO 3Q, SOHO China’s shared office brand.

As an industry leader, CBRE’s China investment and capital

The sale of Hongkou SOHO was yet another big move by SOHO China

market team leverages its powerful resources and platforms, in-

following its business transformation. After fierce competition

depth market analysis and world-class professional services

among many potential buyers, the final transaction figure was settled

to help domestic and overseas investors alike seize investment

at RMB 3.6 billion, making it one of the landmark transactions in

opportunities, create sustainable competitive edges and gain high

Shanghai in 2017. According to the company’s public announcement,

investment returns. Boasting more than 40 highly experienced

this sale brought high returns and abundant cash flow for SOHO

professionals, the team provides comprehensive services, covering

China.

various fields in property investment to meet the needs of clients in over 100 cities. In 2017, the team closed 50 major investment deals

The joint acquisition of Hongkou SOHO shows that the three buyers

in Greater China, with the total transaction amount exceeding RMB

believe Shanghai’s property market will continue to grow and the

30 billion and the total transaction area over 1 million square metres.

acquired property will help meet the increasing demand for premium

One of their most successful cases was assisting SOHO China to sell

Class A office buildings in prime locations. The transaction was partly

the entire Hongkou SOHO building for RMB 3.573 billion to Keppel

a result of Keppel Land China and Keppel Capital Holdings once

Capital Holdings, Keppel Land China and another investor.

again achieving synergy (both under Keppel Corporation) by jointly acquiring a premium property located in Shanghai’s central district,

Hongkou SOHO sale sets new market benchmark

thus consolidating their market position in Shanghai and further enhancing their portfolio of commercial properties. For the other investor, the acquisition of Hongkou SOHO constituted an important step in its global asset strategic plan and helped to bolster its asset

After successfully helping SOHO China dispose of its SOHO Century

allocation in Asia Pacific.

49

Best Practices for RICS Awards China 2018 Winning Projects and Teams

Mr Gao Shibin, head juror of the jury for the RICS Awards China 2018,

team carried out a thorough analysis of the project’s tenants, down

has plenty of praise for this transaction, “The transaction of Hongkou

to such details as their nature and moving history, it was revealed

SOHO is highly representative in terms of transaction amount,

that some of them had chosen to relocate to Hongkou SOHO from

market impact, future development prospects and social reputation

offices in the core, traditional CBD. Therefore, the team repositioned

of the parties involved in the deal. In brokering this transaction,

the project as another financial and business centre in Shanghai’s

CBRE’s investment and capital market team demonstrated top

CBD, in order that the valuation could be more accurate.

professionalism and an innovative spirit; the transaction process they designed and the proposed solutions both serve as strong references for the industry.”

Achieves success with professionalism and excellent team work Public tenders offer both challenges and opportunities In this benchmark transaction, the services provided by CBRE’s investment and capital market team include initial judgement, buyer bidding, pre-negotiation, exclusive negotiation, business terms negotiation and transaction process. The whole process was fraught with challenges, one of the largest was nothing more than the property owner SOHO China’s relatively high expectations of the transaction amount – which led them to adopt open-market auction – and time. Compared with property sales through an exclusive agent or joint agents, the open-market auction strategy would brought forth intense market competition, and could lead to chaotic bidding prior to the transaction, it was a huge test of the team’s professionalism and communication and negotiation capabilities. As a highly experienced and determined team that rose to the challenge, the CBRE team was fully aware of the huge opportunities behind the challenges and immediately set about conducting a large amount of market research and analysis, in order to be one step ahead of others.

Acutely identifying potential for appreciation With excellent service and professional attitude, the CBRE team conducted a large quantity of accurate market and data analyses for this project. As this transaction would be classified as an overseas equity transaction, to ensure completeness and comparability of market data, the CBRE team reorganised the data on large transactions in the commercial area in North Sichuan Road and comparable places in the vicinity; the team also researched into the market transactions in the surrounding area to increase the data’s relevance to this case. According to their analysis, in May 2016, Qian Hai Life Insurance Co., Ltd. successfully acquired a plot of land north of this project with a planned gross floor area of 18,280 square metres for RMB 41,028 per square metre. In December the same year, another plot of land located in a straight line 600 metres from this project was sold for RMB 37,351 per square metre. The red-hot land market means an increasing number of investors are seeing strong appreciation potential in the area which predicts a sparkling future for this part of the city.

Accurate project re-positioning North Sichuan Road, where Hongkou SOHO is located, has been earmarked for a city-level commercial centre, the Shanghai government has decided to make it a distribution hub for imported products and clustering point for overseas companies to help the place regain its past glory. Hongkou SOHO was seen by the public as a yardstick for gauging the revival of North Sichuan Road. The CBRE

50

Accurately grasping opportunities

Thanks to the unified effort of the entire team, despite the size

With its detailed data analysis, the CBRE team uncovered a very

and complexity, the deal, from initial negotiation, signing of the

large difference between this project’s effective rent at the time

investment memorandum, to final transaction completion, was

of transaction and the reported average rent of about RMB 10 per

completed in only 100 days, setting a new record for large equity

square metre per day in Class A office buildings in the vicinity of

transactions. This is a testament to the CBRE team’s professional

People’s Square, and the commercial area in North Sichuan Road

and accurate assessment of capital markets and deep understanding

is only 2.5 kilometres from the square, this is precisely where the

of investors.

opportunity of this project lie. After the transaction, rentals at Hongkou SOHO paid by new tenants saw a relatively large increase, which validates the team’s judgement.

Precise estimations using innovative data models the team conducted a meticulous analysis and comparison of the

Partnering with rics: cbre wins the best deal of the year award two consecutive years in a row

various types of qualified investors on the market based on their fund allocation, financing capability, ability to carry out overseas

This is not the first time CBRE has received the RICS awards, at RICS’

transactions, market familiarity and past records and swiftly

first China Awards ceremony in 2017, CBRE took the lead and swept

identified potential investors. The team then utilised its years of

the field by winning seven awards, including an excellence award in

experience and successful track record, as well as assessment

the Best Deal of the Year category its investment and capital market

of the current market to simulate the property’s possible bidders,

department received for the SOHO Century Plaza project. When asked

their background and pricing capabilities and used data models to

about his feeling about receiving an award again for their role in the

accurately estimate and help the client formulate reasonable pricing

Hongkou SOHO project this time, Alan Li, CBRE’s Managing Director

strategies. This helped them win SOHO China’s trust and acceptance,

and Head of Capital Markets in Greater China, commented, “This

and eventually led them to the exclusive negotiation stage.

award means so much to us, it shows our team has beaten many strong competitors to claim the award in this category. Since RICS has an excellent industry reputation and is well known both at home and abroad, this recognition means our client-centric approach we have persisted are recognised. It is also our vision to continue to stay at the forefront of the industry by leading the real estate sector and creating a future of excellence.”

Providing full range of services through inter-departmental coordination This transaction is one that best epitomises the CBRE team’s team work and one-stop services. The team collaborated with professional research teams to conduct a detailed and comprehensive analysis of the market conditions of the project’s surrounding, the government’s policy guidance and future plans, rent levels and their potential

CBRE and RICS are long-term strategic partners and have jointly

for increase and performed precise positioning for the project for

organised training for many professional courses to move the

the client’s reference, as well as devising acceptable investment

industry forward by cultivating high-quality, professional talents.

strategies. Meanwhile, the leasing team under the office building’s

Furthermore, the two companies have co-organised industry events

owner also offered their full support by actively sharing information

to facilitate effective knowledge exchange by building international

of the first-hand office rental market, including factors such as new

platforms.

tenants’ requirements, price expectations and location preferences, and making accurate estimates of future rent increase. These data and results were subsequently vindicated by the market after closing of the transaction.

51

Best Practices for RICS Awards China 2018 Winning Projects and Teams

RICS Awards China 2018

BEST BIM APPLICATION

Winner JCM International Engineering Technology Co. Ltd and China Electric Power Research Institute

Application of BIM to the full-life cycle projects

BIM has become a part of the construction industry in China. It has been generally recognized by the industry that application of BIM technology will bring about significant change and transformation and upgrading of the sector. In this edition, we will explore the specific applications of BIM and their actual effectiveness through the Technology Research & Development Center of China Electric Power Research Institute, a recipient of RICS Awards China 2018, which has adopted the joint construction and management model.

Example of successful BIM application As a rare project in China which has applied BIM technology to the full life cycle, the project’s success is significant to the entire construction sector. “Joint Construction Management fully unleashes the advantages of BIM in integrated management of construction works besides synergising all related parties to apply such a technology to the full cycle, including design, procurement, works and maintenance. In recent years, BIM technology is increasingly gaining attention in China. Although in some projects, valuable trials were made and its effectiveness was apparent, it is usually the design entities which are applying the technology without active participation and coordination from related project parties.

Furthermore, its application went no further than spatial modelling and pipeline collision testing, additional application of BIM technology is yet to materialize. In the backdrop of China actively promoting the full life cycle, success of this case has helped extend and promote the wider application of BIM technology to a higher level”, commented Gao Shibin, head juror of the jury of RICS Awards China 2018.

The Technology Research & Development Center of China Electric Power Research Institute is positioned as a scientific infrastructure and supporting platform that compares to worldclass R & D institutions. The project has a building area of 85,000 square meters with 11 aboveground floors and three underground levels; the total investment was RMB0.645 billion and construction took 608 days. In the early stage, the owner commissioned Joint Construction Management (Beijing) International Engineering Technology Co., Ltd to manage the BIM-based design phase. As the effectiveness of BIM technology began to show, the owner decided to extend its application to the full life cycle of design, procurement,

52

contractor, professional sub-contractors and equipment supplier Party A. The scope involves design, procurement, pre-construction preparation, construction and maintenance, thus BIM was applied vertically to the building’s full life cycle of design, procurement, construction and maintenance and horizontally to facilitate the flow of 3D, 4D, 5D and 6D data.

pre-construction preparation, construction and operation and maintenance. The results were excellent: ¬ Statistics of 1,562 spatial functions were compiled which eventually gave rise to high effectiveness in spatial use, they include information such as codes, names, elevation and area; ¬ 660 problems were found in the construction drawings which

¬ BIM-based sustainable building analysis includes daylighting

significantly minimized the need to make amendments during

solution analysis, heating and ventilation solution analysis,

construction work;

mechanical and engineering solution analysis and energy

¬ Quality of work was ensured, and the project received the Beijing

consumption analysis, etc.;

Great Wall Golden Cup Award;

¬ BIM-based collaboration includes analyses of pipeline collision,

¬ Collating RFID data of 1,800 pieces of equipment;

pipeline integration and feasibility of operation and maintenance,

¬ BIM project management was one of the candidates of the ICPMA

etc.;

“The Better Way” award.

¬ BIM-based design document version management; ¬ BIM-based procurement management includes contract interface division, etc.;

What is BIM? BIM stands for Building Information Modelling, it is an information model which coordinates design and construction of works while maintaining internal consistency by imitating actual building information with 3D digital technology. The core of BIM is sharing and integrating information of different stages, from design, costing, construction management to future real estate management.

Through the participation of and collaboration between all parties, a higher project efficiency, higher building quality, reduced construction period and lower construction costs are achieved. In other words, not only is BIM a high-end technology, it is also a down-

¬ BIM-based 4D progress management includes progress imitation animation, project progress analysis and enhancement, etc.; ¬ BIM-based 5D cost management includes real time transparent cost planning, construction volume list, progress payment, automatic identification of changes and settlement upon completion of construction, etc.; ¬ BIM-based 6D operation and maintenance management includes coding integration of BIM-based operation maintenance equipment, completion of RFID labelling, frontend portable application development and backend operation and maintenance platform development, etc.; ¬ Data security is managed through a cloud server and database.

to-earth management tool.

Why apply BIM?

Challenges and solutions during BIM application Challenge 1:

In the project of the Technology Research & Development Center

Difficulties in communication and collaboration between

of China Electric Power Research Institute, Joint Construction

stakeholders. As a BIM consultant, Joint Construction Management

Management signed ten contracts on BIM application and

must communicate contract content to the owner, main contractor,

development with related entities, including the owner, main

professional sub-contractors and equipment supplier Party A to

53

Best Practices for RICS Awards China 2018 Winning Projects and Teams

ensure that all stakeholders promote the application of BIM in all stages of the project according to the contract. Besides the joint construction and management team, specific operators include teams from the owner’s infrastructure office and operation management, the team from design institute, management personnel and technicians of the main contractor and other related staff. The pressure on communication is huge.

Joint Construction Management devised a closed-end communication flow which connects all parties for BIM application, making use of management flow that follows international standards. A “SMT – PMT - PIT”3-tier organization structure for collaboration was set up. The team also created an “Asynchronous and Linear Modelling Workflow” for control of workflow based on the “RICS Global Professional Guidance – International Guidance on Implementation of BIM Edition One”; “Little Big Room” was also created for fast-paced collaboration.

Challenge 4: The great variety and large number of project equipment brought great challenges to operation and management.In order to effectively increase operation and maintenance efficiency and reduce post-construction maintenance pressure, Joint Construction Management employed RFID technology to facilitate checking of information, including basic model and size of equipment, identify out-of-order equipment parts as soon as possible and provide feedback to the manufacturers for maintenance and repairs.

This enhanced the efficiency of BIM application, raised facility management standard and efficiency in the project’s maintenance stage, ensured reasonable and advanced application of information technology and enhanced the quality of construction work.

Innovative technology and methods Joint Construction Management employed a number of innovative technologies in the project, which led to BIM application in the full Challenge 2:

project cycle and creation of a leading methodology in the sector.

BIM cannot accurately generate works volume lists which meet the ”Standard for Calculating Works Volume for House Building and

1. Real-time dynamic 5D cost management cloud platform.

Refurbishment Works” (2013 version): Many software packages

BIM+ Cloud computing technology + Databank technology + 3D

claim to be capable of generating BIM-based works volume lists

reproduction technology were employed to rapidly computerize list

which meet the national standard, Joint Construction Management

presentation and calculation of works volume. List presentation

notices that genuine cases are rare in actual implementation

which used to take several days previously can be done in real time

because of the lack of up-to-standard 5D models and poor

with simultaneous completion of works volume calculation, which

performance of software. Therefore, Joint Construction Management

used to take a similar amount of time. This has significantly speeded

developed its own up-to-standard 5D model and software which

up the calculation of the construction work volume lists which used

automatically reflects BIM model data and works volume lists. This

to take several weeks.

enables genuine fulfilment of works volume lists which meet the ”Standard for Calculating Works Volume for House Building and Refurbishment Works” (2013 version) through BIM models.

Challenge 3: How to plan, trace, control and improve the progress of construction projects: For BIM-based 4D progress management, enhancement analysis of works progress was conducted by simulating the works progress plan of contractors and inspecting the actual progress of project work.

54

2. Works cost dialogue robot. With BIM + Cloud computing +

Joint Construction Management, said, “All the BIM technology

Speech technology, project team members can obtain project

application points throughout the project can be reproduced, what

data by communicating with works cost dialogue robot through a

is difficult to reproduce is how to integrate and collaborate with all

smartphone app. The works cost dialogue robot has the following

stakeholders under the BIM environment. Besides BIM consultants,

characteristics: accurate dialogue and semantic capacities for

strategic preparation and active coordination are required of

handling enquiries about works cost; semantics-based knowledge

participants in the construction industry value chain, namely

base function which supports bulk upload of data; quick response to

architects, engineers, contractors, construction material suppliers

requests for handling huge amounts of data with ease; easy access

and operation and maintenance companies. On the one hand, they

through app downloaded to mobile phone.

must correctly understand BIM technology and consider it to be a kind of information driven project management tool for construction

3. RFID operation and maintenance management platform. With

activities; on the other hand, they must enhance the BIM talent

BIM + RFID + Cloud computing +Database technology, operation and

pool, set up a mechanism for training scientific talents and raise the

maintenance model can be accessed in 3D. Information including

creativity level of BIM talents.”

equipment location and properties can be obtained and maintenance and repair information can be integrated with RFID ID code for operation and maintenance management of equipment.

Through a series of technological innovation, Joint Construction Management was granted 10 software copyrights with two applications for patented inventions which are under review, a set of methodologies for BIM application was also devised: ¬ Design methodology: Comprehensive construction design which satisfies the requirements of construction, operation and maintenance ¬ Project management methodology: Smart project management which is data-driven, integrated, cooperative, transparent and respectful to partners ¬ Data: Full life-cycle data flow with all building elements encoded

Revelation: prerequisites for successful bim application Under the premise of China’s continuous advocacy of project full life cycle, successful BIM application by Technology Research & Development Center of China Electric Power Research Institute is certainly not unintended but the culmination of various factors, including advancement and maturing of the latest technology, proactive project management concepts that keep abreast of the times, evolution of business models and enhancement of team capability.

Success of the project serves as a significant example to the construction industry but as Mr Qiu Chuang, General Manager of

55

Best Practices for RICS Awards China 2018 Winning Projects and Teams

RICS Awards China 2018

BEST BIM APPLICATION

Winner

CES INVESTMENT

CEA’s new Beijing airport project achieves success with the aid of BIM

Over the past few years, China’s civil aviation industry has experienced significant growth as the country’s economy strengthens. Simultaneously, Building Information Modelling (BIM), Big Data and cloud computing are profoundly changing the way the construction industry operates. To what extent could airport development further accelerate with the aid of BIM technologies?

We look to China Eastern Airlines’ (CEA) hub in Beijing Daxing International Airport, the winner of the Best BIM Application of the Year at the RICS Awards China 2018, for answers.

A new area for BIM application Beijing Daxing International Airport is a key aviation and transportation project of China’s Thirteenth Five-Year Plan. CEA will move into the new airport — its main hub — and take a 40% share of the airport’s passenger business in the future.

The project includes a hangar, vehicle maintenance base, international and domestic cargo terminals, inflight catering, ground services, offices, and other supporting facilities. It has a total building area of 1,169,800 sq. meters and an estimated investment of RMB13.2 billion.

The challenges of the new airport project are numerous, including: enormous scale, tight work schedule, heavy workload and multiple entities for coordination. China Eastern Airlines has proactively tackled these challenges using information technology-based solutions and digitised management services.

BIM-based technologies, including Revit, Glodon BIM5D and the Xie Zu Cloud Platform, were employed throughout the project. All the information and data collected by software from construction works were integrated through cloud servers; this made possible the linking up of data, processes and resources at different stages of the project’s life cycle, which facilitated the coordination of all participants.

56

A role model for BIM application China Eastern Airlines combined BIM technology with other construction management schemes, which made it possible to integrate different technologies, including: BIM, weekly work progress reports, drone aerial photography, 3D scanning and CEA Cloud Databank. This effectively solved miniaturised management

An innovative approach

problems covering the whole process, such as the optimisation of work solutions, work coordination, and quality and safety control.

The use of BIM technology on construction projects has become more prevalent in recent years and is usually implemented by a thirdparty consultant. BIM is an effective way to accelerate progress and control risk, however, this consultant-oriented approach to project management is not without its shortcomings: ¬ Instead of engineering professionals, users of BIM technology are technicians employed by consultants. Most of them lack knowledge of construction engineering work, and have difficulty reading a drawing, so structures are not built as designed.

First, the team was upskilled by recruiting the right talent and by

¬ When a set of design drawings is completed, the next step is

engaging external BIM professional organisations to coordinate

modelling by the BIM team based on the drawings. This step is

training. The BIM Management Centre was established in just three

plagued by long processing times and high error rates because BIM

months and core members were all equipped with professional BIM

and design teams work separately. As key projects nationally, the

skills and knowledge.

approval process for airport development is relatively quick and the work schedule is usually tight, so BIM modelling and construction

Internally, China Eastern Airways introduced BIM management

works are carried out simultaneously, which gives rise to more

processes and critical technical content in the existing design

problems in the later stages.

management, cost management, progress management and

¬ With no knowledge of the technology, the owner’s management

standard contract text. The business flow and management standard

team totally relies on the BIM consultant, who cannot reasonably be

of different departments were optimised, and BIM technology and

expected to manage and assess the effects of BIM application.

construction management were deeply integrated into design, contract management, construction work control, and cost control.

Due to these, China Eastern Airlines leveraged its managerial

The BIM Management Centre also provided training for different

advantage as the owner and setup a BIM Management Centre in the

departments to ensure that employees were conversant in the use of

hub. The Centre is responsible for the arrangement and approval of

BIM software.

management systems, the approval of project funds, the guidance and management of BIM applications, and reviewing the results of BIM applications.

Externally, as the developer, China Eastern Airlines had to commission many design companies and a main contractor to work on the project. They adhered to the principles of pre-work application and ongoing control with BIM technology. Before construction work commenced, the airline worked with different companies regarding the modelling standard and depth — the model quality was checked monthly.

57

Best Practices for RICS Awards China 2018 Winning Projects and Teams

All problems detected were collated into comments and sent to the modelling team for modification. Errors were rectified during the process so that the model would not slow work progress and ensure that BIM could be promptly applied to production.

Technology innovation during construction

¬ BIM + Mobile-end application: When work was in progress, devices such as handsets and iPads, were used for inter-regional and inter-

Design in the aviation industry must satisfy certain special

departmental information exchange, communication, collaboration

requirements, such as altitude control, function adjustment and

and management. This provided the management team with real-

technology design. To accommodate these, China Eastern Airways

time updates about what was happening on work sites.

had to strengthen cooperation with external software suppliers, which instigated a series of customised BIM-based innovations:

¬ BIM + 3D scanning: This made possible the supervision and safety of the installation of the steel portal frame for the hangar.

¬ BIM-based works control: The BIM 5D platform was used for online reporting at routine supervisory meetings, which allowed all management departments to check on work progress, understand quality and safety issues, and coordinate resources at any time.

From laggard to leader China Eastern Airlines applied BIM technology to closely link up all parts of the project. BIM was applied throughout the production process, from applying BIM models to participation in design panels or routine supervisory meetings. The achievements were significant.

Management flow was optimised, and resources and information were integrated, which significantly increased the control and management efficiency of the project.

To improve the control of design quality, China Eastern Airlines organised sessions to select drawings and required all participating professional designers to present their work by integrating 2D drawings with 3D models to highlight the effects of design and

¬ BIM + Cloud: A virtual office cloud platform for online collaboration,

difficult areas during implementation. This practice synchronised

drawings approval and data management was created by CES

completion of the models and drawings, resulting in a harmonious

Investment Inc, the main contractor for construction works. This

relationship between the designers and model-makers on the one

meant that documents and models could be browsed and annotated

hand, and significantly improved the quality of drawings and models

digitally.

on the other.

Drawings selection session

A drawing of fire pump room

¬ BIM + Drone + Point Cloud: Drone aerial photography was employed

To control the tendering process, problems such as missing items

to record the original topography of the work sites. Based on the

in drawings and depth were detected through BIM models, this

data, a point-cloud model was produced. It was then integrated

significantly increased the efficiency and accuracy of list compilation

with Revit software to develop the foundation pit model, calculate

and ensured that the total investment was within budget.

dredging and filling volumes for earthwork, and produce 3D drawings.

These helped the Budget Management Department speed up the

Compared to 2D drawings, BIM technology detects potential

calculation of the earthwork balance.

problems through virtual work so that a prompt solution can be

58

provided. It also facilitates the simulation of resource planning and the supervision of work progress.

The new Beijing airport project started later than China Eastern Airlines’ other airport projects because the design was behind by six months, but. with the aid of BIM technology, work progressed smoothly, and it overtook other projects during the later stages.

Through the application of BIM, China Eastern Airlines lodged several proprietary patent applications and successfully applied for two BIM demonstration projects in Beijing as the main applicant.

“China Eastern Airlines applied BIM in the design and works stages of the hub project at Beijing Daxing International Airport. BIM was integrated with other technologies like cloud computing and mobile communication to fully demonstrate the unique advantages of this innovative BIM-based management approach. This will help promote the application and practice of BIM2.0 in China.”

Gao Shibin, Head Juror of the RICS Awards China 2018

Positive outlook for BIM application

The success of China Eastern Airlines’ hub project at Beijing Daxing International Airport is a good example of successful BIM application.

In the early phase of the project, China Eastern Airlines encouraged

As the construction industry and related technologies continue

the application of BIM to all facets of the project by actively

to develop, the trend in the industry is towards the coexistence

cooperating with software suppliers to promote technological

and integration of 2D and 3D. BIM will surely become the future

improvement and coordinating communications between all related

development trend, but the technology must overcome many

parties in the design and works stages.

challenges before further promotion and breakthroughs are possible: More importantly, due to the project’s low cost, management With immature technology, drawings for complicated construction

standard and low threshold, others will be able to learn from this

projects are unsatisfactory and incomplete models mean BIM

project and replicate its successes elsewhere.

platforms are unable to satisfy the needs of projects. A lot of effort is required for software re-development.

Shortage of professional talents and difficulties in building teams.

Currently, there are not enough BIM technicians conversant in construction work, there must be increased efforts to recruit, train and attract talent with overseas experience to enhance the overall standard of practitioners.

Improvement in market environment needed. Different facets of construction projects are poorly coordinated; sometimes BIM platforms are reduced to nothing but empty shells. A breakthrough is needed in the current market environment to promote the informatisation of construction and determine a suitable scientific management approach so that BIM technology can effectively fulfil its role.

59

Best Practices for RICS Awards China 2018 Winning Projects and Teams

RICS Awards China 2018

SUSTAINABILITY ACHIEVEMENT

Winner

COFCO

Sustainable architecture in the backdrop of urban renewal

Urban renewal has become a trend in the inventory housing era The emergence of the middle class, upgrading of consumption and restructuring of the sector are the three main factors which has pushed China’s real estate industry into the era of inventory housing and intensively operated business. In the meantime, new land in CBD is becoming harder to come by, especially in first-tier cities, more often this has led to the situation of the faster the development, the more sluggish the primary housing market.

Hence future urban development needs to be based on upgrading, alteration and renewal of existing buildings with urban renewal as the new engine of growth of urban sustainability.

In the Beijing market, China has always emphasized Beijing-Tianjin-Hebei integration and industry decentralisation in recent years. However, as China develops socially and economically, the hardware, equipment and facilities of many old projects have become outdated, with serious potential operation and safety problems and energy wastage, giving a poor customer experience. They are simply not able to meet the demand for premium office space under the rapidly developing office market. In order to support the national policy and meet market demand, China National Cereals, Oils and Foodstuffs Corporation (COFCO) has acquired Sanli Building and Sanli Department Store in North Second Ring for rebuilding to fully realise the potential land value of the project site.

Greening and sustainability as foci of office ecosystem restructuring The upgrade of consumption, living and industry has catalysed the trend of urban renewal as well as emergence of new offices, driving office space providers and operators to turn their attention to the restructuring of office ecosystem. For this reason, the COFCO • Landmark team proposes the concept of intensively operated business for new offices, emphasizing post-development operation so as to create workplaces that take care of users’ emotion needs and promote user loyalty, as well as emphasize green operation and sustainable project development.

The project is a Grade 5A office development comprising buildings of different heights,

60

namely high (13 storeys), medium (5 storeys) and low (3 storeys), mainly for office and commercial uses plus supporting facilities. The upper ground level 1 is the lobby and commercial zone; upper ground

Greener building with the aid of ubiquitous technology

levels 2 to 12 house the office zone; basement level 1 is occupied by staff canteen and a commercial zone, with the remaining area

The project’s ultimate objectives are to create a personalized

earmarked for car park spaces and supporting services rooms.

business experience for office workers, energy-saving green office

Leveraging the geographical advantage of its location near the

environment and ideal business ecological system which integrates

Temple of Earth, COFCO • Landmark is an un-replicable high-end

business, leisure, health and social functions that are people oriented

landmark commercial complex in the capital’s core district that pays

from a brand new perspective and aided by advanced technologies.

respect to the rich cultural heritage and seeks to re-create a timeless

To achieve these goals, a number of world-leading technologies are

classic.

employed to perfectly integrate technology and art to create a unique architectural statement.

¬ Grey stone material is used for the exterior/interior walls and indoor/outdoor flooring to create a quality of subdued excellence.

A great portion of the exterior walls are curtain walls, which reflect

Energy-saving and outdoor environment

the surrounding environment and integrates with it, creating a “coexistence” effect.

Utilization of underground space is appropriate, the underground area represents 226.99% of the total land area. On the other hand,

¬ Appropriate architectural scale. Though situated in the CBD of

the green area ratio of the project is expanded to 51.12% through

the capital, the buildings are designed to maintain balance with the

stratified outdoor greening + rooftop greening.

building masses along both sides of roads, including Baojing Building, instead of occupying the site as a “colossal” mass to increase the site’s plot ratio. ¬ the 60-meter “REFLECT” flying cascade in the courtyard was created by the US water feature design company WET. The creation is named the World’s Highest Indoor Water Curtain by the Guinness Book of World Records. ¬ Advocating a healthy lifestyle. Levels B1 to B6 are connected with health-fitness staircases with hanging gardens on the rooftops of the low and high buildings which echoes with the Temple of Earth. ¬ Located in the CBD of the Second Ring district, the complex will drive economic development of the surrounding area with its commercial and office functions.

Energy saving and utilization of energy The project has a multi-purpose two-layer internal ventilation curtain wall installed, which includes an energy-saving and comfortrendering system that effectively reduces electricity consumption of the air-conditioning system, enhances indoor heat comfort, effectively reduces the impact of noise from external sources, and shades sunlight by adjusting the strips on the central air cavity device. A chilled water retention system is employed as the cooling source for air-conditioning. Chilled water is generated at night time, taking advantage of the lower electricity rate for use during day time when the electricity rate is at its peak. This serves the dual purpose of decreasing grid expenditure on the peak electricity bill and reducing the operation costs of the building.

61

Best Practices for RICS Awards China 2018 Winning Projects and Teams

Energy saving and utilization of water resources Grade 1 water-efficient apparatuses are used with water meters installed according to usage to raise the water saving efficiency.

An outdoor water-efficient sprinkler system is used: To save water on plant watering, a micro-spray sprinkler system and a wind/rain sensor are used for outdoor plant watering. Municipal reclaimed water is also used to achieve a non-conventional water utilization rate of 56.39%.

Tsinghua University has been invited to study the division path of molecules based on the project’s PM2.5 control. In addition, a PM2.5 control device was also built. The ternary PM2.5 filtering technology which is harmless to humans is employed to meet the standard of 35mcg/m3 specified by the World Health Organization for the entire building.

In order to help people working and living in the vicinity to find car parking spaces under the pretext of controlling the expansion of the building, the project pioneers a warehouse-style 3D car parking station in the Grade A office block. The parking needs of office users

Savings on material and utilization of material resources Integrated decoration design and flexible partitioning are employed

and people in the vicinity are satisfied through a fully-automated hitech solution.

Tackling challenges through innovation

for the communal areas, making use of materials such as steel, aluminium alloys and glass curtain walls; the ratio is nearly 13%.

As a redevelopment project in Beijing CBD, COFCO • Landmark faces

Furthermore, a reinforced concrete framework-shear wall system is

many challenges and difficulties.

used, the whole structure is made from high-strength steel materials of HRB400 or above.

Indoor environment

Architectural form Located alongside the Star Gate of the Temple of Earth, the building heights must meet the height requirements specified for heritage

The indoor environment is enhanced with a noise-insulating

protection. The three different heights of 15.7 meters, 25 meters

enclosure, natural lighting and natural ventilation, and has an indoor

and 60 meters which arose out of compliance needs challenges the

air quality surveillance system installed. In order to minimize the

architectural forms, especially in the handling of rooftops. The team

impact of smog on the indoor air quality, Professor Zhao Bin of

employed an innovative rooftop garden design and three full-height courtyards to capture natural lighting. This allows office users to experience nature when working indoors; besides offering space for leisure and interaction, it also reduces indoor heat and minimizes electricity consumption for cooling and heating.

Façade design As most of the buildings on both sides of Anwai Street were completed in the 1990s when stone was the main material for the façades, for a harmonized urban landscape, the planning authority specified that stone shall be the main material for the façade. This would be contradictory to the plan to have the office building’s large expense of curtain walls covered by glass for capturing natural light, vertical stone ribs are thus used to ensure consistency with the urban landscape and satisfy the lighting needs of the offices.

Ventilation curtain walls To maintain consistency of the façades which is important to an architect, the initial plan was to install ventilation curtain walls on all four façades. This ensured the best results but the costs incurred would double. Taking into consideration the climate of the low-lying

62

regions of Beijing, it was decided that the best energy-saving effect

The project has received various awards for its use of different green

would be achieved by installing ventilation curtain walls on the south

technologies and low-carbon environmental-protection building

and west. After demonstrating the cost effectiveness and rationale

space, including:

of such a technique, the architect was eventually convinced to have ventilation curtain walls installed on the south and west instead of all

1.Three-star Green Building Label, which is China’s highest green

four façades.

building evaluation standard; 2.LEED-CS precertification level (certified, Platinum), only 5% of all

Application of BIM technology

LEED certifications has achieved this standard in the world; 3.British BREEAM 4-Star Design and Post-Construction Certifications. This project is China’s first office building achieving

Throughout the design and work stages, BIM technology was applied,

BREEAM 4-Star Certification (current standard). BREEAM 4-Star

which effectively enhanced quality and efficiency. BIM technology was

Certification represents the world’s leading standard for sustainable

applied in the design and construction drawing stages for verifying

buildings, it is also the world’s first and most widely applied standard.

the design effects and helping to produce design drawings. The visual

The project has also received 5-Star Platinum Office Pre-assessment

function of the technology was also utilized to identify conflict and

Certification for China Business Office Building from the Ministry of

create a visual simulated environment for more reliable judgement

Housing and Urban-Rural Development, giving COFCO • Landmark

of on-site conditions to provide bases for progress scheduling, works

benchmark status in international commercial office buildings.

sequence, site layout and arrangement of logistics and manpower.

136 problems (errors or omissions) in the design drawings were

The impact and significance of the Landmark’s realisation of urban

identified and solved with BIM technology.

sustainable concepts are immeasurable. In this regard, Mr Gao Shibin, Jury Chairman of RICS Awards China 2018 said:

Quantifiable effects of sustainability, immeasurable future impact

Within the context of urban renewal, to a considerable extent, the COFCO • Landmark redevelopment project serves as a good example for the protection and renewal of old parts of cities and

The COFCO • Landmark project follows sustainable development

the integration of new buildings with urban design. The sustainable

concepts. Energy consumption for air-conditioning and heating was

development technologies and green architectural design concepts

reduced by 17.04% to 61.53kwh/m2.a using such devices as chilled

adopted for the project will have a far-reaching impact on the

water retention system, high-efficiency air-conditioners, variable

promotion and development of sustainable development and

speed pumps, fans, and measures such as seasonally upward-

highlight the genuine substance of sustainable architecture. The

adjusted fresh air ratio and cooling towers as the chilling source in

buildings provide users with a relatively high level of comfort with

winter. The plan is to reach an energy-saving rate of up to 32% and

significantly reduced energy consumption. The valuable experiences

a reduction in CO2 emission of 27%, which are significantly higher

gained in applying green technologies will serve as a visible, learnable

than the national and local building standards. On the other hand,

and promotable example for the construction of public buildings in

the use of non-conventional water sources such as rainwater and

Beijing and throughout the country.

recycled water will save 26080.79m³ in water consumption annually, which is a water-saving rate of 47%, this willreduces the water bill by approximately RMB250,000.

63

Best Practices for RICS Awards China 2018 Winning Projects and Teams

RICS Awards China 2018

SUSTAINABILITY ACHIEVEMENT

Winner

Arcplus Group

Block 9, Hongqiao State Guest Hotel: sustainable path for old buildings

Since China embarked on its reform and opening-up policy, the construction industry’s achievements have attracted the world’s attention. Yet the constant consumption of natural resources, a hallmark of 20th-century industrial civilization thinking, has accompanied the country’s fast-paced urban development for the last 30 years, leading to the rapid depletion of resources and extensive environmental degradation. As one of the major forces for societal development, the construction sector is a major energy consumer; construction of buildings and their energy consumption consumes approximately 50% of the world’s energy, and the debris and waste generated during construction and demolition constitute 40% of the total urban waste. Hence, achieving sustainable development in the construction field is a global challenge, which also begs the question: do we truly have high-quality structures?

The Block 9, Hongqiao State Guest Hotel project (hereinafter referred to as “Block 9”), which received the Sustainability Achievement of the Year at RICS Awards China 2018, is an example of a high-quality structure.

Quality green buildings are not innate Block 9 is a Spanish-style building located inside the Hongqiao State Guest Hotel, a five-star hotel resembling a garden villa.

Built in the 1950’s, the Hongqiao State Guest Hotel is one of the few garden-villa hotels in cities. With an above-ground gross floor area of nearly 3,000 square metres, Block 9 was expanded and redeveloped to become a modern office building to suit the leaser’s needs.

As a near-zero energy consumption demonstration buildings in Shanghai, it is equipped with near-zero energy building design and technology provided by the Green Building Center under East China Architectural Design & Research Institute Co., Ltd. (hereinafter referred to as “Green Building Center”). Construction of Block 9 was completed on 20 August 2017, it was checked and accepted by DNV GL’s Det Norske Veritas and occupied as its Asia Pacific headquarters.

64

World Bank’s relevant standards, applied sustainable development concepts and techniques to the whole construction process and built a corresponding whole-process management and organisation model. The project has provided the green construction market with a feasibility reference sample, which has great benefits in moving China’s construction industry towards sustainable development.”

Sustainable development concepts permeates the construction industry The Green Building Center followed the indicator standards provided by the World Bank: “Without compromising the occupiers’ comfort and excluding the energy consumption through sockets, the carbon emission per unit gross floor area should be less than 25 kgCO2/ (m2•a), which means the per unit gross floor area energy efficiency should be below 34.7kWh/(m2.a)”. By simulating the building performance to optimise the passive building design to reduce air conditioning and lighting energy consumption, utilising sustainable development techniques and measures such as high efficiency energy systems and equipment, renewable energy technologies and the BA system to optimise and reduce energy consumption, the energy consumption per unit gross floor area was successfully

Sustainable development is an inevitable trend for industries today; it is a significant direction and hot topic for urban engineering construction and management involving multiple areas including ecological environment, transportation, construction, energy and waste. Sustainable development is a complicated system engineering project; its concept is to reduce the environmental impact of buildings and integrate them with the environment, benefiting the occupants’ health. Its purposes are to reduce energy consumption, save water, cut pollution, protect the environment, ecosystem and health and enhance productivity, ultimately benefiting future generations.

brought down to 23.26kWh/ (m2.a), which, when compared with Shanghai’s Design Standard for Energy Efficiency of Public Buildings, Block 9, Hongqiao State Guest Hotel‘s annual energy consumption

December 2015 Commencement of project

was 68.8% lower, saving around RMB 320,000 annually; the static payback period of this project is 14 years.

April 2016 The World Bank approved the technical proposal and construction design

December 2015 Near-zero technical proposal design

October 2016 Discussions on the design proposals began

September 2016 Construction began; indoor decoration design

April 8, 2017 Norwegian Prime Minister visited the site

March 2017 Construction work completed

August 2017 Indoor decoration work completed

May 2017 Indoor decoration work started

Image 2: Development Stages of Block 9’s Near-zero Energy Consumption Redevelopment Project

Sustainable construction can have enormous economic benefits and societal impact: ¬ While planning and designing construction projects, using sustainable techniques and methods will reduce the environmental impact of construction activities and save local resources and energy, bringing continuous harmony between the environment and buildings; ¬ During the construction stage of a project, utilising environmentally friendly construction methods can significantly reduce its impact to the environment, waste generation and natural resources consumption and minimise the adverse effects of the buildings on The project gained the approval of the World Bank and was also

the indoor air quality;

included in the first batch of demonstration projects in the “Solutions

¬ In the operation and maintenance of a construction project,

to Heating and Cooling of Buildings in the Yangtze River Region”,

sustainable techniques and methods can reduce energy

a planned key R&D project in China’s 13th Five-Year Plan. On this

consumption, improve indoor air quality, maintain suitable levels of

project, Mr Gao Shibin, head juror of the jury for RICS Awards China

lighting and acoustics, guarantee the construction system’s safety

2018, gave an excellent appraisal, “Block 9, Hongqiao State Guest

and hygiene, generate less pollutants and toxic substances and

Hotel is a relatively small building in scale, but its near-zero energy

increase the efficiency in resource utilisation;

consumption modifications have great significance. In providing

¬ Employing sustainable construction measures will also ensure the

technological support, the Green Building Center followed the

construction project’s economic benefits and reduce its risks.

65

Best Practices for RICS Awards China 2018 Winning Projects and Teams

¬ High-efficiency lighting sources are used and dimmer function added: The indoor lighting power density value is lower than that proposed in the Energy-saving Lighting Design Standards for Buildings (GB50034-2013) by 10-20%; ¬ Use of Renewable Energy: A photovoltaic system is installed on the roof and mono c-Si installed on the photovoltaic panels, whose photoelectric conversion efficiency is above 15% and annual generation capacity 48MWh, the generated electricity is used for lighting and powering equipment in the office building, the rest is directly sent to the power grid;

Sustainable techniques progress with time

¬ BA integrated control system: Technologies ranging from airconditioning monitoring, lighting monitoring, window sensor control

Instead of remaining completely unchanged, sustainable techniques

and fan frequency conversion to renewable energy monitoring are

are updated with time. However, the basic principles are to ensure

applied to increase subsequent operation efficiency.

the construction location and blueprints are reasonable, the lighting and ventilation designs match the climate, the heating and lighting

The contributions of these proprietary designs for near-zero carbon

systems are energy efficient, etc. In Block 9’s near-zero energy

emission buildings to the building’s energy conservation are as

consumption construction project, the appropriate techniques and

follows:

measures recommended by the Green Building Center mainly include: ¬ High-performance enclosure design: Using triple-pane twochamber insulating glass with a heat transfer coefficient of 1.5 W/ (m2.K) and air tightness level 8 for the outside windows; compared

Main Energy-saving Measure

Technical Measure

Annual Energy Consumption (kWhx103)

Energy-saving Rate (%)

High energy-conservation standards

-

213.62

-

Natural light

Indoor natural light is utilised to the maximum to cut down the time for using lighting tools; install a tubular daylighting system

198.84

6.92%

Enclosure structures

Enhance the enclosure structure’s heat performance and increase the heat performance of the external walls and windows by over 20% by meeting the Energy-saving Design Standards for Public Buildings

184.90

6.53%

Efficient energy-saving lighting tools

Employ efficient energy-saving lighting tools with dimmer function

136.43

22.69%

Efficient coolness and heat sources

Multi-online variable refrigerants Adopt exhaust heat recovery measures

120.63

7.40%

Natural ventilation

Improves the building’s natural ventilation, reduces the use of the air-conditioning system in the transitional seasons by a total of 30 days

114.67

2.79%

Photovoltaic system

The photovoltaic installation’s capacity is 50.4kWp and the annual generation capacity 48MWh

66.67

22.47%

with Category B office buildings in Shanghai’s Design Standard for Energy Efficiency of Public Buildings (DGJ08-107-2012), Block 9’s cooling load for air conditioning was 51.5% lower and heat load reduced by 15.2%; ¬ Lighting and ventilation optimisation design measures: 66.6% of the gross floor area of the building can use natural light to meet its lighting requirement; in the lavatories and equipment and machine rooms where there is no natural light, 330MM natural light tubes were installed; in autumn and spring, the windows can be opened to make 87.9% of indoor main function space comfortable for occupants and reduce air-conditioning usage by approximately 30 days.; ¬ High-performance energy system: The system is suitable for efficient multi-splits air-conditioning systems and exhaust heat recovery technology commonly found in small office buildings,

Leading industry with innovation; green building center’s core weapon

employing the latest high-efficiency scroll compressor whose IPLV (C) is as high as 8.0 and with a full heat recovery efficiency of ≥65%;

Since its establishment, the Green Building Center has focused on green construction and its applications, product R&D and technology research of energy conservation in buildings and assigned a number of key national scientific research topics and engineering projects. At the RICS Awards 2017, the Green Building Center was the recipient of two major awards – the Professional Consultancy Service Team of the Year and the Research Team of the Year. Apart from its meticulous insights, unique, creative designs and advanced construction techniques as required by the users, the Green Building Center’s core competitiveness lies in its exceptional innovation ability.

66

to ensure both the construction process and products meet the requirements. The problems detected in process management were reflected in time to the relevant units for discussion to come up with solutions, which were reviewed after amendments to confirm their design requirements; ¬ In the work completion and acceptance stage, by collecting inspection reports, conducting on-site testing, debugging and carrying out acceptance checks on the related energy saving technologies and reviewing the indicators for air-conditioning and lighting energy consumption and photovoltaic system using test data, the Green Building Center ensured the construction standards and equipment installation satisfy the requirements; ¬ In the operational stage, the user and operation and maintenance party guaranteed the building’s actual annual carbon emissions would not exceed 25kgCO2/m2 through establishing a scientific energy consumption monitoring and management system.

While the above stages centred around the energy consumption indicator system, its energy saving indices, management contents and problems solved were all different, which not only took into account the energy conservation tasks in the different stages, but also guaranteed consistency in energy saving management in the different phases, making the building energy saving construction process both consistent and coherent, as well as filling the technical gaps in the near-zero energy building field.

In this project, the Green Building Center innovatively applied the whole-process organisation and management model to the entire construction of Block 9 and acquired the management model for whole-process management and organisation of the pilot project.

In different stages of the construction work, based on the key tasks in different stages of the building energy conservation works and referring to the energy consumption indicator system for the whole construction process, it proposed corresponding management styles and implemented whole-process building energy conservation management. ¬ In the project set-up stage, the property owner and user gave assurances to the low carbon office of Changning District, Shanghai that the project would meet the standards for near-zero carbon emission buildings; ¬ During the design stage, the overall energy savings index was

Incessant team work, ready to deal with challenges

broken down into the following parts: air-conditioning, lighting and photovoltaic system;

The biggest challenge of this project was the strict standard set by the World Bank that the carbon emissions in the unit’s gross floor

¬ During the construction stage, the Green Building Center conducted

area be below 25kgCO2/(m2•a). The colossal challenge for the Green

process management, broke down indices, reviewed and corrected

Building Center team was how to meet the World Bank’s standard

drawings, simulated and compared the energy consumption

considering Shanghai’s climate, and to ensure that the technical

indicators, performed equipment parameter review and sample

measures are promotable and replicable, and the passive and active

testing and carried out regular inspection of the construction site

building designs have been taken into account.

67

Best Practices for RICS Awards China 2018 Winning Projects and Teams

The project team integrated its professional staff and divided the tasks among them, detailed research plans were and regularly formulated and the results and difficulties communicated with one another. Externally, the team was able to fully integrate external resources, communicate with multiple parties including the service targets, property owner and the design, operation and management teams to organise events such as cooperation activities and seminars, so as to ensure that the research results were feasible and practical.

Concerning the standard for the indoor index reading of PM 2.5, the team considered a whole host of factors by collecting the outdoor air

expanded with new topics ranging from ecological cities and healthy

quality indices and relevant office environment data from Shanghai

buildings to ultra-low-energy buildings, so people in the industry feel

over the past three years. After conducting large amounts of analysis

the pressure to continue to learn to improve their own knowledge and

and performing ample calculations, the team gradually quantified

skills, stay ahead of the field and push the development of China’s

the originally vague project requirements, converted the figures into

green building industry forward.

detailed requirements for the building design and then proposed feasible solutions, thus realising high-quality ecological operations

Fortunately, since the Chinese government released the first

for the building.

Evaluation Standards for Green Buildings, this top-down effort has yielded good results, incentive policies from different levels of the government are continually being launched, and a green building

Advancing china’s green building development by following global standards

standard system is gradually being developed. The number of green building labels continues to rise and the public’s attention to green construction has exploded. As of the end of 2017, China’s accumulated green building area has reached 1.2 billion square

Yan Yan, head of the Green Building Design and Technology Consultation Research Institute at East China Architectural Design & Research Institute Co., Ltd., commented, “The international standards advocated by RICS have widened our horizons; the institution progresses with the times by staying highly sensitive to new technologies and development directions in the industry, enabling our team to master the sector’s latest technologies.

Concurrently, RICS’s rigorous approach and professionalism have led our team to approach projects with a research mentality and view the project requirements with a long-term vision.”

Technology is developing at light speed in the green building arena; this field is also cross-discipline, cross-sector, integrated and highly applicable. With the constant emergence of new concepts and technologies, the boundaries of knowledge are constantly being

68

metres.

69