blue-book-2011

www.davislangdon.com www.aecom.com

THE BLUE BOOK 2 0 1 1

Accessible Knowledge for theProperty & Construction Industry

Davis Langdon has compiled the information in this document from a number of sources. Davis Langdon has not verified that such information is correct, accurate or complete. Whilst every care has been taken in the preparation of this document, Davis Langdon makes no representation or warranty as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Historical trends are not necessarily a reliable indicator for actual future performance. Davis Langdon accepts no liability or responsibility to any party in respect of this document. This document has been prepared for the purpose of providing general information, without taking account of any particular person’s objectives, situation or needs. You should seek professional advice having regard to your own objectives, situation and needs before taking any action.

© Davis Langdon Australia Pty Ltd

Foreword

Mark BeattieManaging DirectorDavis Langdon, Australia New Zealand

This is the thirteenth edition of The Blue Book and the first since we joined AECOM, one of the world's largest providers of professional, technical and management support services in the world.

So what changes? For the most part, there will be no change to the way in which we provide the same quality of service to our clients as we always have done. What will change is our ability to bring forward insights and innovation that help clients look into the future.

As part of AECOM we believe Davis Langdon will be able to deliver even better construction consultancy services in the built, natural and social environment. That belief stems from the fact that our services will be founded on real evidence and knowledge gathered from unrivalled local, regional, national and global experience. We are committed to making more knowledge available to our clients and colleagues through publications such as this Blue Book. We work progressively to ensure the information it contains is useful and relevant to our industry.

I'm excited to continue in my role as Managing Director for Australia and New Zealand. I can see the immense opportunities and the potential to enable our growth both as a business and for all our staff as we connect with AECOM.

AECOM (NYSE: ACM) is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 51,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation and collaborative technical excellence in delivering solutions that enhance and sustain the world’s built, natural and social environments. A Fortune 500 company, AECOM serves clients in more than 100 countries and has annual revenue in excess of $6 billion.

More information on AECOM and its services can be found at www.aecom.com

KEEPING AUSTRALIA’S

WHEELS TURNING

Global Property and Construction Consultants

Project Management | Cost Management | Building SurveyingSpecification Consulting | Urban Planning | Verification ServicesProperty Consultancy | Certification Services | Access Consulting


Booming population growth has the potential to affect the productivity, liveability and future prosperity of Australia. Developing effective strategies to meet these challenges is one of the

most complex issues facing the property and construction industry today.

But if we can manage the competing demands of infrastructure and economic growth with sustainable outcomes, we can create a tomorrow that’s beyond the dreams of today.

Davis Langdon have the global knowledge, industry experience and creative solutions to get us there.

Booming population growth has the potential to affect the productivity, liveability and future prosperity of Australia and New Zealand. Developing effective strategies to meet these

challenges is one of the most complex issues facing the property and construction industry today.

But if we can manage the competing demands of infrastructure and economic growth with sustainable outcomes, we can create a tomorrow that’s beyond the dreams of today.

Davis Langdon have the global knowledge, industry experience and creative solutions to get us there.

KEEPING AUSTRALIA &

NEW ZEALAND'S WHEELS TURNING

Contents

Contents

One: About Davis Langdon 1

Two: Construction Key Statistics Australia 7

Three: Construction Key Statistics New Zealand 17

Four: Cost Data and Market Data 23

Five: Property Investment Information 45

Six: Emerging Trends 53

Seven: Sustainability 63

Eight: Project Delivery, Strategies and Business Assurance 75

Nine: Working Calendars 93

Ten: Directory of Key Offices 105

Davis Langdon, An AECOM Company6

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Lumiere Apartments, Sydney, NSW

www.davislangdon.com www.aecom.com 1

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bout Davis Langdon

About Davis Langdon

Utilising its industry strength, Davis Langdon, as part of

AECOM, provides clients with property and construction risk

and value management. The firm manages time, cost and quality

imperatives to achieve successful project outcomes that enhance

and sustain the world's built, natural and social environments.

It also assists stakeholders with compliance assurance and identification of value improvement possibilities.


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Davis Langdon brings together a range of professional services for total project delivery

Project Management

Our Project Managers take responsibility for total project delivery. With a clear understanding of the local business environment, our eyes are focused on your business outcomes.

Our services are tailored to suit the specific needs of individual projects, including:

• managing projects• stakeholder management• strategies for delivery• risk and value management• program management• contract administration• superintendent services• design management• independent overview

Cost Management

Designed to deliver professional cost planning and quantity surveying services to a wide range of building and engineering projects, our Cost Management services balance time, cost and quality for optimum outcomes, providing:

• feasibility and early cost advice• cost planning during design• tender documentation and evaluation• project verification services• construction phase cost management• tax depreciation/capital allowance• assessment and optimisation• replacement valuations• life cycle capital planning

Cost Planning of Building Engineering Services

We specialise in independent cost and value management of Engineering Services in a wide range of building types, technical facilities and infrastructure projects, including:

• evaluation of sustainability focused options• life cycle assessments• capital cost estimating• independent peer reviews• design advice and procurement options• expert witness services• National Australian Built Environment Rating

System (NABERS) assessment services

Project Services


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bout Davis Langdon

Building Surveying

From an independent, informed position, our Building Surveying services provide unbiased advice and assistance to the property industry in order to understand and meet their regulatory compliance obligations:

• building permits/private certification• performance-based Building Code of Australia

(BCA) solutions• fire safety engineering advice and audits• building compliance audits for due diligence• design consultancy to BCA• approval facilitation• Commonwealth Aged Care Certification

assessments• essential fire safety measure inspections

Urban Planning

Our Urban Planning services are designed to deliver innovative and practical planning solutions based on an agreed strategy to minimise risk and optimise outcomes. Applying knowledge gained from extensive experience in the private and public sector, we offer a service that is reliable, personal and cost effective, providing:

• project feasibility studies, highest and best use advice

• re-zoning advice and management of approval process

• facilitation of approval for subdivision, land use and development

• community consultation and communication• expert evidence in planning appeals• due diligence assessments of planning controls

and opportunities• design team participation in master planning

projects

Specification Consulting

Our Specification Consulting is tailored to meet the needs of all parties involved in the design and construction process, including design teams, developers, retailers, government bodies, educational institutions, private companies and manufacturers. Our proprietary document management system is a global database that enables every project-specific specification to be generated and developed as the design and documentation process evolves.

Our services also include design management for monitoring of design teams, to ensure design quality and efficiency, minimise time delays and design risk. Access Consulting

Our Access Consulting team provides an all inclusive service to meet the project brief and the client’s requirements. The aim is to ensure appropriate management of access provision to facilities for all, specifically people with temporary and permanent impairment or disability.

Our mission is to enable independent, equitable, functional and safe access and working environments for people of all abilities. We assist design teams, building owners, work place managers and home owners with:

• existing building access reviews• design reviews of proposed developments,

including new build and alterations• action plans and building management plans• OH&S system advice, safety in design and work

site assessments • occupational therapy services• presentations and training• policy development and implementation


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We are committed to delivering innovative solutions through our global reach, local knowledge and technical excellence

SustainabilitySustainable Solutions Planning and Delivery

We are committed to helping achieve sustainability goals through our specialist knowledge and expertise nationally and globally. This commitment is the heart of all our services. We work with our clients to meet the environmental, social and economic challenges of developing new buildings and operating existing buildings, offering:

• definition and implementation of sustainability strategies for new construction and existing buildings

• identification of embodied energy in new building designs

• identification of an existing building’s environmental performance, planning energy abatement strategies and improvement opportunities and whole of life modelling

• creation of green specifications to ensure sustainability outcomes including designing out of waste

• environmental performance auditing with improvement opportunities identified

• research to identify best practices emerging from around the world

Infrastructure ServicesIndependent Reviewer/Verification Services

Delivered to large infrastructure projects, we provide verification to project stakeholders that project performance requirements are progressively achieved through design and construction. We work to provide a systematic overview and checking process across the whole project with reporting that provides confidence to stakeholders that the project is on track and compliant.

We review the systems in place to see that they are functioning, assess contractor performance and look forward to inform stakeholders of the project’s direction. We often team with design firms to enable a technical review that is structured and risk focused.

Property ServicesProperty Performance Assessment

Assessing the ability of property to meet its expected performance levels, both from an owner and occupier viewpoint, is increasingly important. Building performance has now been heightened by community focus on achieving a greener built environment. We offer comparative assessments of a single building or portfolio of buildings covering condition, environmental impact and social performance.

Our assessment results in a high level report that identifies performance, benchmarks and highlights improvement and abatement opportunities.


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bout Davis Langdon

Technical Due Diligence Reports

Purchasers and vendors of property are increasingly expected to undertake appropriate due diligence that enables well founded investment and divestment decisions. We have developed an approach to the technical and physical building assessment that identifies high risk and high value issues to be clearly evaluated and fully appreciated. Through integration of specialists advice, our reports are comprehensive and easy to understand and many clients use them as a foundation for their ongoing asset management.

Building Consultancy Services

We assist property and portfolio owners with services aimed at improving investment returns and efficiency of asset management:

• maintenance and capex planning implementation• make good assessments and negotiations• essential fire safety measures audits• building defect diagnosis and reporting• DDA access audits/action plans• NABERS Audits/Green Building Fund projects/

energy efficiency consulting• Commercial Building Disclosure ratings and

reporting• tax depreciation assessments• replacement valuations

Certification ServicesThird Party Certification to International and National Standards

Our assessors come from and understand the industries in which our clients operate. This helps ensure that the certification process adds value and contributes to business improvement. Our processes as a seperate entity, including the physical separation of electronic data, ensure our independence from other operating areas.

Our accredited services:

• ISO 9001:2008 (QA)• ISO 14001:2004 (EMS)• AS/NZS 4801:2001 (OH&S)• OHSAS 18001:2007 (OH&S)

• SafetyMAP (OH&S)• National Audit Tool (OH&S)We are a recognised service authority for:

• CFF (Civil Contractors Federation) Construction Management Code

• VicRoads Prequalification Scheme• Good Environmental Choice Australia (GECA)• Green Building Council Australia (GBCA)

Product Identification Scheme Evaluation Second Party Auditing

As demand for assurance in the property and construction industry increases, more of our clients are undertaking Second Party Audits. These audits are focused on the specific requirements of a client, as opposed to a specific standard. These audits provide objective evidence of compliance to a specification, as agreed between customer and supplier.Product Certification

In addition to auditing management systems, Davis Langdon is also working towards the provision of Product Certification – enabling greater assurance for materials used in the construction and wider industries.

DEGW

DEGW is a specialist business consultancy service that helps clients capitalise on the relationship between people and physical places to enhance organisational performance.

Through rigorous and structured evidence, and by really listening to the aspirations, strategic needs and practical commercial concerns of our clients, DEGW develops insightful solutions to our clients’ challenges.

DEGW’s services include research and strategic advice, strategic briefing for working and learning environments, design strategy and management, and change or transition management associated with the physical environment.

DEGW provides these services to the corporate, government, education and healthcare sectors.


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Wheller Gardens Aged Care, Brisbane, Queensland


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onstruction Key Statistics - A

ustralia

Two:

Construction Key Statistics

Australia

Construction Output 8

Exchange Rates 8

Industrial Relations 9

Labour Force and Productivity 10

Government Stimulus Investment 11

Non-Residential Building Approvals 11

Value of Building Work Done 12

Building Approvals for New Multi Unit Residential Buildings 13

Value of Engineering Work Done 14


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Australian Construction OutputThe total construction work completed during the year 2009-2010 was A$159.23 billion, equating to 9% more than the previous year. The table below shows the activity level of each sector, while the total output of residential and non-residential building activity is shown by state, in the chart below.

Total Building Work Done – by States (AS|m) Residential and Non-Residential

Value of Construction Work Done (Public and Private)

Source: Reserve Bank of Australia

AUD Exchange Rates

USD EUR GBP NZD YEN (right axis)

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Jan-

99

Jul-9

9

Jan-

00

Jul-0

0

Jan-

01

Jul-0

1

Jan-

02

Jul-0

2

Jan-

03

Jul-0

3

Jan-

04

Jul-0

4

Jan-

05

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

Jan-

09

Jul-0

9

Jan-

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Jul-1

0

0

20

40

60

80

100

120

140

YENUS

D, E

UR, G

BP, N

ZD

Type of Work A$ billion %

Residential Building 44 28%

Non-Residential Building 35 22%

Total Building Work Done 79 50%

Engineering Construction 80 50%

Total Construction Work Done 159 100.00%Source: ABS 8755.0

Source: ABS 8755.0

18,523

22,320

17,621

4,805

11,263

2,236

VictoriaQueenslandSouth AustraliaWestern Australia

TasmaniaNorthern TerritoryAustralian Capital Territory

New South Wales

1,305865


Two: C


ustralia

Source: ABS 6321.0.55.001

Source: ABS 6321.0.55.001

Working Days Lost to Industrial Disputes per 1,000 Employees (National)

Industrial Relations

The Australian construction industry has historically had a very high level of industrial disputes, with disputes in the non-residential sectors tending to be higher than in the residential sector. The past few years saw industrial disputes reach their lowest levels in history, however the past 24 months has seen a significant leap. Working days lost due to industrial disputes has increased 267% over the past 24 months, albeit off a very low base. Construction still remains one of the sectors least affected by industrial disputes, with 43 days lost per 1,000 employees, compared to metal product manufacturing and other manufacturing for example, which lost 51 days per 1,000 employees due to disputes.

200

250

300

350

400 19

98-19

99

1999

-2000

2000

-2001

2001

-2002

2002

-2003

2003

-2004

2004

-2005

2005

-2006

2006

-2007

2007

-2008

2008

-2009

2009

-2010

0

100

150

Wor

king

Days

Los

t

Construction 268.9 393.0 234.1 237.0 237.2 200.2231.7 90.8All Industries

55.8 105.3 45.1 41.9 30.2 66.9 28.8

13.9

21.6

11.8

9.9

31.6

17.4

43.3

13.3 13.3

Working Days Lost to Industrial Disputes per 1,000 Employees (By Sector)

0

10

20

30

40

50

60

Metal Product Manufacturing and Other Manufacturing

Construction

Education and Training, Healthcare and Social Assistance

Other Industries


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Labour Force and Productivity

Labour Force Capacity Constraints

Unemployment Rate – Historical

Construction Productivity

Jobs Required per $1 million of Construction Work Done

Compared to previous economic recoveries, Australia’s labour force has considerably less spare capacity this time around. The expected high single digit unemployment forecast from 2009 did not eventuate as organisations chose to reduce staff hours or shift to part-time labour instead of reducing staff numbers.

Businesses were mindful of the skills shortages experienced in the latter half of the past decade and have since begun to replenish full-time positions as the nation’s total hours worked return to pre-GFC levels. Although many industries implemented salary constraints during 2009, the low unemployment rate is now on the cusp of creating wage price pressures that will once again contribute to escalating construction costs.

Improving the nation’s productivity is imperative to our future economic prosperity. Relative to previous economic downturns the national labour force has considerably less spare capacity plus with an ageing population, the proportion of people within working age will continue to decline.

Coupled with strong demand for services, primarily driven by the resources boom, the labour force supply will face challenges meeting future demand. However, recent trends have been favourable with labour productivity in the Australian construction industry improving from 2009 to 2010.

Davis Langdon found that the Australian construction workforce (including engineering work) utilised an average of 6.3 jobs for each million dollars worth of work done for the year ending March 2010, compared to 6.8 jobs per million dollars for the same period in 2009.

0%

2%

4%

6%

8%

Jan-

80

Mar-8

4

Rece

ssion

GFC

Rece

ssion

May-

88

Jul-9

2

Sep-

96

Nov-

00

Jan-

05

10%

12%

Mar-0

9

Unemployment Rate

NSW VIC QLD SA WA Australia

Residential & Non-Residential Work Done 16.7 10.6 13.9 14.2 11.6 13.1

Total Work Done (Including Engineering) 8.3 7.3 6.3 6.8 3.5 6.3

Proportion of Engineering Work Done 50% 31% 55% 52% 70% 52%

Figures based on year end March 2010 Source: ABS 6291.0.55.001, ABS 8755.0, Davis Langdon Research

Source: ABS 6202.0, Davis Langdon Research


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ustraliaGovernment Stimulus Investment

Non-Residential Building Approvals (Financial Years)

Non-Residential Building Approvals

Stimulus Cost as a Percentage of 2008 GDP for Selected OECD Countries

4.7bn

5.9bn

3.4bn

5.5bn

1.8bn

1.1bn

Offices Factories and Warehouses EducationHealth Aged Care Recreation Non-Residential AccommodationRetail and Wholesale

1.6bn

2.1bn

2008 – 2009

3.8bn

4.2bn

2.7bn

16.1bn

5.8bn

0.7bn0.6bn

1.3bn

2009 – 2010

6.1bn

9.9bn

4.9bn

3.4bn

2.9bn

1.9bn

1.3bn

2.2bn

2007 – 2008

Australia and New Zealand delivered the third and fourth highest stimulus measures respectively when compared against other OECD countries. In Australia the bias was towards public sector investment rather than tax cuts, whereas in New Zealand the strategy was reversed in an effort to minimise the systemic impacts of the global financial crisis.

Public sector investment during 2009-2010 has significantly lifted Australia’s construction output due to stimulus investment. When compared to the 2007-2008 financial year, Education and Health sector investment increased 370% and 100% respectively, while investment in Offices contracted by 58%.

5%

3%

1%

-1%

-3%

-5%

-7%

Government Spending Revenues (Tax Breaks) Fiscal Balance

Supportive Fiscal Packages1) Decrease in Tax Revenue2) Increase in Government Spending

USA

Korea

Austr

alia

New

Zeala

nd

Cana

da

Luxe

mbou

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Spain

Finlan

d

Cze

ch

Germ

any

Swe

den

Den

mark

Japa

n

Belgi

um

Nethe

rland

s

UK

Slova

kia

Austr

ia

Polan

d

Portu

gal

Norw

ay

Fran

ce

Switz

erlan

d

Italy

Hung

ary

Irelan

d

Source: OECD

Source: ABS 8731.0


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NSW VIC QLD SA WA TAS NT ACT National

Residential New Residential 7,245 11,555 8,449 2,212 5,976 591 376 932 37,328Alterations &

Additions 1,927 1,853 1,252 373 687 131 70 122 6,412

Non-Residential Private Sector 5,852 5,787 4,157 976 3,048 317 201 615 20,948Public Sector 3,499 3,128 3,766 1,246 1,556 269 211 571 14,242

Total Non-Residential Building

9,352 8,914 7,922 2,222 4,603 585 414 1,186 35,190

Total Building 18,523 22,323 17,624 4,807 11,266 1,308 858 2,239 78,930

Value of Building Work Done (AS|m)

Source: ABS 8755.0

0

2,000

1,000

4,000

3,000

6,000

5,000

8,000

9,000

7,000

10,000

2009

-2010

1999

-2000

2000

-2001

2001

-2002

2002

-2003

2003

-2004

2004

-2005

2005

-2006

NSW QLD SA TASNT ACTVIC WA

2006

-2007

2007

-2008

2008

-2009

A$m

Non-Residential Building Activity


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ustralia

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Unit

Num

bers

0

500

1,000

1,500

2,000

2,500

3,000

Approval Value (A$m)

NSW (no.) WA (no.)VIC (no.) QLD (no.) VIC NSW QLD WA

2009

-2010

1999

-2000

2000

-2001

2001

-2002

2002

-2003

2003

-2004

2004

-2005

2005

-2006

2006

-2007

2007

-2008

2008

-2009

Building Approvals for New Multi Unit* Residential Buildings

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10

Unit NumbersVIC 4,840 4,439 4,287 7,750 4,520 3,433 1,921 2,946 3,908 5,164 7,251NSW 8,006 6,308 11,116 11,815 11,864 8,245 6,824 7,297 7,147 4,578 5,134QLD 2,284 2,733 4,019 6,074 6,026 5,304 5,121 4,796 5,952 3,620 3,111WA 919 617 283 768 1,083 1,424 873 1,914 2,861 875 1,000ACT 120 351 560 740 1228 1107 236 328 680 597 763NT 203 167 94 219 260 460 365 434 372 125 156SA 216 282 89 544 198 349 657 144 610 288 73TAS 45 0 0 0 34 0 38 0 0 0 0Value (A$m)VIC 850 921 1,016 1,891 1,089 794 425 907 1,065 1,411 1,637NSW 1,271 1,083 1,777 2,231 2,277 1,859 1,650 1,886 1,872 1,145 1,386QLD 337 414 796 1,380 1,565 1,569 1,467 1,341 2,223 1,564 739WA 228 107 83 159 225 327 249 644 1,342 331 378ACT 12 45 78 106 192 233 89 71 102 162 202NT 31 35 12 32 54 108 120 151 127 70 39SA 57 44 10 141 50 115 122 41 216 66 16TAS 14 0 0 0 23 0 10 0 0 0 0*4 storey or more apartmentsSource: ABS 8731.0

Source: ABS 8731.0


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Value of Engineering Work Done 2009–2010

NSW VIC QLD SA WA TAS NT ACT

Roads, Highways and Subdivisions 3,324 1,890 5,585 970 2,169 188 152 27

Bridges, Railways and Harbours 2,605 720 1,475 460 2,304 32 31 1Electricity Generation, Transmission and Pipelines 3,421 1,705 2,701 1,080 2,590 385 25 83

Water Storage and Supply, Sewerage and Drainage 1,897 2,223 1,964 1,180 1,055 148 53 189

Telecommunications 1,327 1,217 563 200 286 66 98 81Heavy Industry 2,576 1,204 6,535 490 14,528 61 704 0Recreation and Other 976 592 705 320 1,301 84 104 23Total 16,126 9,551 19,528 4,700 24,234 964 1,168 404of which: for Public Sector 9,985 3,170 8,655 2,610 4,073 678 231 201 for Private Sector 6,141 6,380 10,873 2,090 20,161 286 937 203

Value of Engineering Work Done 2009–2010 (AS|m)A$

m

Telecommunications

2,000

4,000

8,000

6,000

10,000

12,000

14,000

16,000

Roads, Highways and SubdivisionsElectricity Generation, Transmission etc and Pipelines

Bridges, Railways and Harbours

Water Storage and Supply, Sewerage and DrainageHeavy IndustryRecreation and Other

NSW VIC QLD SA WA TAS NT ACT

0

Source: ABS 8762.0

Source: ABS 8762.0


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Engineering Activity

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10

ACT 377 278 267 317 308 301 313 307 370 365 317NSW 8,985 8,620 7,709 8,647 10,188 11,483 12,302 11,444 12,342 16,469 17,128NT 400 235 1,688 1,790 2,126 2,137 2,216 1,813 1,280 2,614 1,201QLD 7,734 6,811 6,560 7,656 7,353 8,892 11,408 13,735 16,787 20,640 20,160SA 2,076 1,580 1,947 2,375 2,314 2,446 2,152 2,707 2,601 3,592 4,984TAS 405 405 684 529 679 787 1,031 940 837 1,011 1,052VIC 4,869 4,375 4,500 5,487 6,253 7,126 8,518 7,625 7,324 8,300 9,972WA 4,027 3,165 4,301 6,391 6,427 7,705 13,517 17,130 19,559 22,425 25,564Total 28,888 25,483 27,662 33,234 35,725 40,951 51,495 55,700 61,100 75,416 80,512

Engineering – Yearly (AS|m)

Engineering construction includes: roads, highways and subdivisions; bridges, railways and harbours; heavy industry; electricity generation, transmission and pipelines; water storage and supply; sewerage and drainage; telecommunications; recreation and other. All data seasonally adjusted.

0

5,000

10,000

15,000

Jun-0

0

Dec-0

0

Jun-0

1

Dec-0

1

Jun-0

2

Dec-0

2

Jun-0

3

Jun-1

0

Dec-0

3

Jun-0

4

Dec-0

4

Jun-0

5

Dec-0

5

Jun-0

6

Dec-0

6

Jun-0

7

Dec-0

7

Jun-0

8

Dec-0

8

Jun-0

9

Dec-0

9

NSW QLD SA VIC WA NT TAS ACT

20,000

25,000

30,000

A$m

Source: ABS 8762.0

Source: ABS 8762.0


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Waitomo Caves Visitor Centre, Waitomo, New Zealand


Three: Construction K

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Zealand

Three:

Construction Key StatisticsNew Zealand

Construction Output 18

Exchange Rates 18

Outlook for 2011 19

Construction Activity 20

Sector Activity 21


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Key

Sta

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New

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New Zealand Construction Output

Construction Activity (by Sector)

6.37bn

0.42bn0.34bn

0.51bn

1.68bn

Accommodation Hospitals & Nursing Homes Factories & IndustrialCommercial Education MiscellaneousResidential

1.70bn

0.67bn

2008 – 2009

6.10bn

0.36bn0.36bn

0.30bn

0.81bn

1.44bn

1.36bn

2009 – 2010

8.42bn

0.43bn0.47bn

0.48bn

1.43bn

1.67bn

0.58bn

2007 – 2008

NZD Exchange Rates

USD EUR GBP AUD YEN (right axis)

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Jul-9

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Jan-

10

Jul-1

0

0

20

40

60

80

100

120

YENUS

D, E

UR, G

BP, A

UD

Source: Reserve Bank of New Zealand

Source: Statistics New Zealand BAS 008AA

The rate of construction activity contraction in New Zealand has begun to stabilise. Construction output peaked in 2007-2008 at NZ$13.5 billion whereas 2009-2010 saw construction activity fall to NZ$10.7 billion.

Overall no particular sector has outperformed any other, with the exception of Education, which increased annual investment by 16% and a further 21% in 2008-2009 and 2009-2010 respectively.

The absence of significant public sector stimulus targeted towards the construction industry is a noticeable contrast to Australia.



ey Statistics - New

Zealand

Transitioning from 2010 to 2011 presents many uncertainties for the New Zealand construction industry. Many economic indicators are predicting that the market is going to remain tight with very little growth prospects for the next year and net migration inflow is half the level it was in September 2009.

Dwelling consents issued in the last 12 months are significantly down compared to the last five years. A small rise in consents has been noted since the low point of July 2009, but the industry is still very much constrained to low activity. Coupled with this is the recent disparity between the New Zealand and Australian dollars. The Australian dollar remains very strong. However the New Zealand dollar, whilst maintaining relativity with the US dollar, is losing considerable ground against the Australian dollar. Late September 2010 saw a 10 year low in the New Zealand - Australian cross rate which is impacting on local trade.

Other factors indicate positive signs for the construction industry. Commercial yields are up to the highest level in four years and interest rates have remained low and relatively stable. 90 day bank yields in the region of 2.5% have been constant for a long period of time. This has limited inflation which will ultimately benefit the property and construction industry as and when the property market picks up.

The New Zealand economy returned to growth in the first half of 2010, albeit at a slower rate than most commentators were predicting.

The Reserve Bank of New Zealand made two consecutive interest rate rises in June and July 2010 after they reached a historical low of 2.5%. However the official cash rate level remains well below ‘neutral’ levels and is expected to remain so until there are more substantial signs of an economic recovery.

The New Zealand construction industry will benefit from changes that have recently been introduced by the Minister of Building, regarding streamlining of the consent processes. The biggest effect will be noticed in the domestic housing market however, it is thought that these changes will have minimal effect on the non-residential construction market.

A degree of stability has been established in the finance markets. While there appears to be a perception that banks are reluctant to lend money, this is not the case for quality projects. We are noticing significant activity within markets related to the buying, selling and upgrading of existing commercial properties.

In November 2010, six local authorities in Auckland combined to become one Council. It is expected that the amalgamation of these Councils will produce streamlining of decisions and a consistent approach to issues in relation to Resource Consents and Building Consents. A logical outcome will be a speedier and more cost effective service. The key deliverable will be to have a consistent approach across all aspects of the consenting process, across the entire region.

In our experience, the property market in New Zealand takes four years to recover from a severe downturn. This was evident after the 1987 downturn. Based on this experience we hope 2011 is the year that the market recovers.

New Zealand Outlook for 2011


Thre

e: C

onst

ruct

ion

Key

Sta

tistic

s -

New

Zea

land

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

NZ$m

Total Residential Buildings Total Non-Residential Buildings

0

1,000

New Zealand Building Work Put In Place

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10

Residential Buildings

New Dwellings 3,895 3,159 3,447 4,707 5,843 6,320 6,162 6,638 7,001 5,004 4,745

Alterations/Additions & Outbuildings 750 673 753 884 1,075 1,056 1,262 1,341 1,424 1,370 1,357

Total Residential Buildings 4,645 3,832 4,200 5,591 6,918 7,376 7,424 7,979 8,425 6,374 6,102

Non-Residential Buildings

Hotels and Boarding Houses 282 221 242 236 352 647 852 642 430 416 360

Hospitals and Nursing Homes 297 280 259 354 324 294 350 427 468 342 357

Factories and Industrial Buildings 351 335 451 380 490 484 512 423 484 505 296

Commercial Buildings 848 889 867 841 998 1,393 1,628 1,460 1,673 1,702 1,358

Education Buildings 349 420 390 493 556 537 597 523 578 668 805

Miscellaneous Buildings 673 715 918 894 890 1,197 1,262 1,470 1,433 1,680 1,442

Total Non-Residential Buildings 2,800 2,861 3,128 3,199 3,611 4,554 5,202 4,946 5,067 5,314 4,618

Total All Buildings 7,444 6,692 7,326 8,789 10,528 11,930 12,625 12,924 13,491 11,687 10,721

New Zealand Construction ActivityNew Zealand Building Work Put In Place (NZS|m)

Source: Statistics of New Zealand BAS 008AA

Source: Statistics New Zealand BAS 008AA



ey Statistics - New

ZealandNew Zealand Sector Activity

Residential

There has been a slight rise in residential consent numbers since mid-2009, including an upturn in the number of apartments planned. Despite this, the industry is still very much constrained to low activity. The level of alteration and renovation work put in place has remained steady with only a 5% drop in activity between 2008 and 2010. This compares to the more significant drop of 32% in the construction of new residential dwellings.

Challenges faced by this sector include easing net migration levels this year – from an average net migration inflow of 1,800 per month in 2009, to a low of 140 in June 2010.

In the longer term the residential sector is expected to benefit from the merging of Auckland local authorities into one ‘Super City’ in November 2010. This is expected to help simplify the Resource Consents and Building Consents processes for the industry.

Source: Davis Langdon Construction Sentiment Monitor NZ, Statistics New Zealand

Commercial and Industrial

Education

Hotels/Hospitality

Sport and Recreation

In Davis Langdon’s inaugural New Zealand Construction Sentiment Monitor (September 2010), 83% of respondents nominated the Office sector as the least likely to contribute to growth in the next 12 months. Participants were more optimistic about refurbishing work, with 71% identifying it as most likely to grow.

While consents for the non-residential sector remain flat, the Canterbury earthquake recovery works will require considerable effort from the government, consultants and the construction industry in general.

Although there is demand-side uplift for industries in New Zealand exporting to stronger Australian and Asian economies, these gains are being eroded by the strength of the Australian dollar versus the New Zealand dollar. Once solid demand begins to rise, the construction industry is still faced with the hurdle of financing projects.

One sector to increase activity levels during the downturn was the Education sector due to the ongoing upgrade of New Zealand’s education buildings. While there are few large projects, the majority of these projects have been relatively small in size and scale which has provided a steady workflow for some contractors. Steady rises in consents data also points to further planned activity in this area in the short term.

Tourism is generally considered one of New Zealand’s largest earners of export dollars. However, after the Canterbury region earthquake, there are concerns that overblown media reports of the damage caused may affect tourism numbers in the short-term, although the Rugby World Cup in 2011 should make up for any drop in annualised visitor numbers, with more than 70,000 overseas visitors expected to attend.

As part of the preparations for hosting the Rugby World Cup, several sporting infrastructure facilities have been upgraded recently. The only new facility will be a stadium in Dunedin to replace the existing venue, with construction continuing through 2010. The existing facilities at Lancaster Park, Christchurch, Eden Park and Auckland, are also being upgraded with new stands. This construction activity is reflected in the number of social and cultural building consents – it was one of the only categories to increase in value in the year to June 2010 when compared to the previous two years.


Four

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Port of Brisbane HQ, Brisbane, Queensland


Four: Cost D

ata and Market D

ata

Four:

Cost Data and Market Data

International Building Costs 24

International Building Cost Comparisons 25

Australasian Building Costs: – Commercial 26

– Industrial 30 – Residential 32

– Retail 35 – Tourism 36

– Sports and Recreation 37 – Health and Aged Care 38

– Education 40

Major Rates for Australia and New Zealand 42

Australian Labour Material Ratios 43


Four

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aInternational Building Costs

# Rate includes parking and minimal external works ^ Rate includes raised flooring and ceiling to tenanted areas* Rate includes FF&E Prices exclude land, site works, professional fees, tenant fit-out and equipmentExchange rates as of July 2010Source: Davis Langdon Research

US$/m2 Sydn

ey

Auck

land

Bahr

ain

Abu D

habi

Doha

Hong

Kon

g

Beijin

g

Sing

apor

e

Kuala

Lump

ur

Manil

a

Bang

kok

Joha

nnes

burg

Los A

ngele

s

San F

ranc

isco

New

York

Lond

on

ResidentialAverage Multi Unit High Rise

2,130 1,380 1,325 1,360 1,370 1,670 480 1,475 440 790 770 1,070 3,450 3,550 3,700 2,010-2,890

Luxury Unit High Rise

2,820 1,730 1,650 1,900 1,900 2,050 655 2,450 1,020 995 1,082 1,600 4,000 4,200 4,200 2,730-3,780

Individual Prestige Houses

2,970 2,420 2,100 2,060 1,800 3,200 655 2,125# 915 1,090 900 1,300 3,400 3,500 3,800 3,050-4,660

Commercial/Retail

Average Standard Offices High Rise

2,380 1,240 1,200 1,500 1,780 1,930 760 1,835 715 785 700 1,140 3,700 3,900 4,000 2,490-3,130

Prestige Offices High Rise

2,550 1,660 1,325 1,650 2,000 2,430 1,070 2,050^ 1,050 1,020 915 1,400 4,200 4,400 4,500 2,970-4,020

Major Shopping Centre (CBD)

1,680 970 1,465 1,565 1,395 2,445 1,090 2,195 870 890 870 1,000 2,800 3,100 3,200 1,570-2,010

Industrial

Light Duty Factory

530 415 660 660 890 1,066 N/A 935 420 400 560 410 1,200 1,400 1,200 675-860

Heavy Duty Factory

610 520 740 880 990 1,163 N/A 1,155 496 445 910 460 1,600 1,800 1,900 1,110-1,285

Hotel3 Star Budget 2,060 1,865 1,920 1,910 2,055 2,440 1,005 2,270* 1,460 1,165 1,275 1,900 2,100 2,200 2,250 1,485-1,845

5 Star Luxury 3,160 2,420 2,700 3,130 3,250 3,105 1,650 3,060* 2,130 1,500 1,800 2,800 4,500 4,600 4,700 2,570-3,530Resort Style 2,810 1,860 3,300 3,410 3,560 N/A N/A 3,060* 1,270 1,210 2,110 2,150 4,500 4,600 N/A N/A

Other

Multi Storey Car Park

645 330 660 800 655 870 395 645 270 435 325 400 850 880 900 400-725

District Hospital

2,660 2,490 2,500 3,290 3,425 2,890 990 N/A 940 1,210 N/A 1,230 6,900 6,900 6,000 2,490-3,130

Primary & Secondary Schools

2,040 1,310 1,630 2,330 1,100 1,330 530 930 275 735 N/A 700 3,000 3,200 3,600 1,850-2,810

Exchange Rates (Avg. 2nd Qtr. 2010)

AUD NZD BHD AED QAR HKD RMB SGD MYR PHP THB ZAR USD USD USD GBP

US$1 = 1.19 1.46 0.38 3.67 3.67 7.78 6.78 1.40 3.23 46.50 32.42 7.6 1 1 1 0.67


Four: Cost D

ata and Market D

ata

Source: Davis Langdon Research

International Building Cost ComparisonsAverage Multi Unit High-Rise

Major Shopping Centre (CBD)

Industrial Hotels

District Hospital

Commercial

0

500

1,000

1,500

2,000

2,500

3,000

US$/m

²

3,500

4,000

New

York

Los A

ngele

s

Sydn

eyHo

ng K

ong

Joha

nnes

burg

Manil

a

Kuala

Lump

urBe

ijing Ba

ngko

k

Doha

Abu D

habi

San F

rancis

co

Lond

on

Bahra

in

Singa

pore

Auck

land

0

1,000

2,000

3,000

4,000

5,000

6,000

US$/m

²

7,000

8,000

New

York

Los A

ngele

s

Sydn

eyBa

hrain

Auck

land

Hong

Kon

g

Joha

nnes

burg

Manil

a

Kuala

Lump

urBe

ijing

Doha

Abu D

habi

San F

rancis

co

Lond

on

500

1,000

1,500

2,000

2,500

3,000

Kuala

Lump

urBa

ngko

k

Manil

a

Beijin

gJo

hann

esbu

rgAu

cklan

d

Bahra

inDo

ha

Abu D

habi

US$/m

²

Singa

pore

Hong

Kon

g

Sydn

ey

Los A

ngele

sSa

n Fran

cisco

New

York

Lond

on

3,500

0

1,000

Kuala

Lump

urBa

ngko

k

Manil

aBe

ijing

Joha

nnes

burg

Auck

land

Bahra

in

Abu D

habi

US$/m

²

Singa

pore

Hong

Kon

g

Doha

Sydn

ey

Los A

ngele

sSa

n Fran

cisco

New

York

Lond

on

Average Standard Offices High RisePrestige Offices High Rise

2,000

3,000

4,000

5,000

500

1,000

Kuala

Lump

urBa

ngko

k

Manil

aBe

ijing

Joha

nnes

burg

Auck

land

Bahra

in

Abu D

habi

US$/m

²

Singa

pore

Hong

Kon

g

Doha

Sydn

ey

Los A

ngele

sSa

n Fran

cisco

New

York

Lond

on

3 Star Budget

5 Star Luxury

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

200

400

Kuala

Lump

ur

Bang

kok

Manil

aJo

hann

esbu

rgAu

cklan

d

Bahra

inAb

u Dha

bi

US$/m

²

Singa

pore

Hong

Kon

g

Doha

Sydn

ey

Los A

ngele

s

San F

rancis

coNe

w Yo

rk

Lond

on

Heavy Duty Factory

Light Duty Factory

600

800

1,000

1,200

1,400

1,600

1,800

2,000


Four

: Cos

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aAustralasian Building CostsCommercial Construction

Low Rise: Less than 3 storeysMedium Rise: 3-10 storeysHigh Rise: 10+ storeysAll rates generally relate to a building achieving a 4 green star rating and a 4.5 NABERS energy base building rating. In broad terms increases of 5-10% would be applicable for achieving 5 Star Green Star and 6 Star Green Star respectively

*Inclusive of builders preliminaries and profit but exclusive of site works, external services, land and interest costs

Mechanical – Rates are for typical base building (excluding fit-out) mechanical services commensurate with the standard of building indicated, including as appropriate, statutory essential mechanical services Electrical – Rates are for typical base building (excluding fit-out) electrical services commensurate with the standard of building indicated, including light and power, statutory essential services and where appropriate, communications, security and MATV back bone systemsFire – Rates are for statutory base building (excluding fit-out) fire services including, as appropriate, hydrants, hose reels, alarms and/or sprinklers

A$/m2 NZ$/m2

Building Type Adela

ide

Brisb

ane

Cairn

s

Canb

erra

Darw

in

Hoba

rt

Melbo

urne

Perth

Sydn

ey

Town

sville

Auck

land

Well

ington

Chris

tchurc

h

Australasian Overall Building Rates*

Average Standard Offices Low Rise 2,160 2,120 2,010 2,160 2,530 2,120 2,200 2,400 2,170 2,390 1,600 1,600 1,600

Medium Rise 2,540 2,480 2,360 2,530 2,970 2,490 2,580 2,800 2,540 2,800 1,800 1,850 1,850

High Rise 2,930 2,860 2,720 2,920 3,420 2,870 2,980 3,000 2,930 3,230 1,950 2,100 2,100

High Standard Offices

3,270 3,200 3,040 3,260 3,820 3,210 3,330 3,500 3,280 3,610 2,250 2,300 2,300

Engineering Services (Mechanical)

Average Standard Offices Low Rise 235 230 220 235 275 230 240 255 235 260 220 270 270

Medium Rise 315 310 290 315 370 310 320 320 315 350 300 300 270

High Rise 345 335 320 345 400 335 350 400 345 380 325 340 320


415 405 385 410 485 405 420 550 415 455 400 400 400

Engineering Services (Electrical)


Medium Rise 165 165 155 165 195 165 170 180 165 185 150 150 150

High Rise 215 210 200 215 255 210 220 220 215 240 160 160 160


255 250 235 255 300 250 260 270 255 285 225 250 250

Engineering Services (Fire)


Medium Rise 64 63 59 64 75 63 65 64 64 71 50 50 77

High Rise 64 63 59 64 75 63 65 70 64 71 60 60 68


84 82 78 83 98 82 85 83 84 92 60 60 85



Four: Cost D

ata and Market D

ata

0

2,000

4,000

6,000

8,000

10,000Forecast

A$m

2000

-2001

2001

-2002

2002

-2003

2003

-2004

2004

-2005

2005

-2006

2006

-2007

2007

-2008

2008

-2009

2009

-2010

2010

-2011

2011

-2012

2012

-2013

2013

-2014

2014

-2015

2015

-2016

2016

-2017

2017

-2018

Construction Forecast – Offices

Source: Construction Forecasting Council 2010

Commercial Commentary

New development in the commercial property market was hit hard by the economic downturn but the challenges faced in Australia were not nearly as extreme as in other parts of the world.

There are promising signs for growth in the sector with vacancy rates and commercial values stabilising in some capital cities. Incentives applied to office leases have also begun to unwind, raising net effective rents, although net face rents remained relatively stable.

Tight lending combined with lower valuations is making it difficult to get developments off the ground, although specific projects with solid pre-commitment still have proceeded while speculative development remains practically non-existent. In the meantime, rising levels of existing building stock have undergone refurbishment in order to uplift the value of the assets and attract future prospective tenants at higher rental rates while also improving the environmental performance of the buildings.

Nationally, demand for office space is showing signs of improvement. According to the Property Council’s Office Market Report, Australia’s office market recorded net absorption of 332,922m2 in the first half of 2010 compared to the negative net absorption of -159,661m2 in the same period of 2009.

Even though demand is strengthening and leading to promising absorption rates in several CBD markets, Australia’s CBD office market vacancy rate rose from 8.0% to 8.9% in the first half of 2010.

As white collar employment continues to grow, demand for new stock will remain strong and further developments will be required. Looking forward, the short term forecast is for steady growth in new office projects however the development lag means this will not reach new supply for 2-3 years.


Four

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aDavis Langdon Tender Price Index – Commercial

Grey areas indicate Forecast Indices. Davis Langdon prepares its Tender Price Index as a measure of price movement within the building industry for metropolitan projects, as well as a reasonable comparison between cities. The index is compiled by pricing, on a quarterly basis, the same basket of work items typical for construction projects, excluding GST.

Date Adela

ide

Brisb

ane

Cairn

s

Canb

erra

Darw

in

Hoba

rt

Melbo

urne

Perth

Sydn

ey

Town

sville

2005 1st Qtr 146 159 137 149 146 160 148 163 1672nd Qtr 147 162 141 152 148 160 152 166 1693rd Qtr 150 164 143 153 150 159 155 168 1724th Qtr 152 166 144 154 152 160 158 169 172



2008 1st Qtr 180 187 175 180 179 178 191 206 182 2012nd Qtr 185 191 178 183 191 180 194 211 185 2113rd Qtr 184 191 180 187 194 181 195 215 189 2134th Qtr 182 191 180 185 198 181 190 214 186 212



2011 1st Qtr 187 179 170 188 218 185 191 177 188 2022nd Qtr 188 181 172 189 219 185 192 178 190 203

120

140

160

180

200

220

3rd 4th

2011

1st

2nd

2005

1st

2nd

3rd

4th

2006

1st

2nd

3rd

4th

2007

1st

2nd

3rd

4th

2008

1st

2ndQuarter

Index

Adelaide Brisbane Cairns Darwin Hobart Melbourne Perth Sydney Townsville

3rd

4th

2009

1st

2nd

Canberra

3rd

4th

2010

1st

2nd

Forecast

Year



Four: Cost D

ata and Market D

ataAustralian Property Market – Commercial Overview

= Total stock (m2) as at June 2010= Vacancy Rate (%) as at June 2010

* Rent = Prime Net Effective Rent (A$/m2) as at June 2010** Yields = Prime Yields (%) as at June 2010 Source: Property Council of Australia; Knight Frank Research

Melbourne CBD Sydney CBD

Canberra

Perth CBDAdelaide Core

Brisbane CBD

Tota

l Sto

ck (m

2 )

2,800,000

3,000,000

3,200,000

3,400,000

3,600,000

Jul-0

0

Jul-0

1

Jul-0

2

Jul-0

3

Jul-0

4

Jul-0

5

Jul-0

60

2

4

6

8

10

12

Jul-0

7

Vaca

ncy R

ate (

%)

Jul-0

8

3,800,000

4,000,000

4,200,000

Jul-0

9

Jul-1

0

Vacancy Rent * Yields **6.5 300 – 520 6.75 – 7.25

Tota

l Sto

ck (m

2 )

Jul-0

0

Jul-0

1

Jul-0

2

Jul-0

3

Jul-0

4

Jul-0

5

Jul-0

6

0

2

4

6

8

10

12

Jul-0

7

Vaca

ncy R

ate (

%)

3,800,000

4,000,000

4,200,000

4,400,000

4,600,000

4,800,000

5,000,000

Jul-0

8

Jul-0

9

Jul-1

0


Tota

l Sto

ck (m

2 )

Jul-0

0

Jul-0

1

Jul-0

2

Jul-0

3

Jul-0

4

Jul-0

5

Jul-0

6

Jul-0

7

Vaca

ncy R

ate (

%)

1,200,000

1,400,000

1,600,000

024681012

Jul-0

8

14

1,800,000

2,000,000

2,200,000

Jul-0

9

Jul-1

0

16

Vacancy Rent * Yields **13.6 N/A N/A

Tota

l Sto

ck (m

2 )

Jul-0

0

Jul-0

1

Jul-0

2

Jul-0

3

Jul-0

4

Jul-0

5

Jul-0

6

Jul-0

7

Vaca

ncy R

ate (

%)

Jul-0

8

1,400,0001,500,0001,600,0001,700,0001,800,0001,900,0002,000,0002,100,0002,200,000

0

2

4

6

8

10

12

Jul-0

9

Jul-1

0


Tota

l Sto

ck (m

2 )

Jul-0

0

Jul-0

1

Jul-0

2

Jul-0

3

Jul-0

4

Jul-0

5

Jul-0

6

Jul-0

7

Vaca

ncy R

ate (

%)

880,000

900,000

920,000

940,000

960,000

1,000,000

980,000

0

2

4

6

8

10

12

14

Jul-0

8

1,020,000

Jul-0

9

Jul-1

0


0246810121416

Tota

l Sto

ck (m

2 )

Jul-0

0

Jul-0

1

Jul-0

2

Jul-0

3

Jul-0

4

Jul-0

5

Jul-0

6

Jul-0

7

Vaca

ncy R

ate (

%)

1,200,000

1,250,000

1,300,000

1,350,000

1,400,000

1,450,000

1,500,000

Jul-0

8

Jul-0

9

Jul-1

0



Four

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aIndustrial Construction


Mechanical – Rates are for typical base building (excluding fit-out) mechanical services commensurate with the standard of building indicated, including as appropriate, statutory essential mechanical services Electrical – Rates are for typical base building (excluding fit-out) electrical services commensurate with the standard of building indicated, including light and power, statutory essential services and where appropriate, communications, security and MATV back bone systemsFire – Rates are for statutory base building (excluding fit-out) fire services including, as appropriate, hydrants, hose reels, alarms and/or sprinklers

A$/m2 NZ$/m2

Building Type Adela

ide

Brisb

ane

Cairn

s

Canb

erra

Darw

in

Hoba

rt

Melbo

urne

Perth

Sydn

ey

Town

sville

Auck

land

Well

ington

Chris

tchurc

h


IndustrialLight Industrial - Low Bay, Tilt-Up

640 625 595 635 745 625 650 635 640 705 550 650 650

Heavy Industrial - High Bay, Tilt-Up

785 770 730 785 920 770 800 785 790 870 700 750 750

Attached Offices 2,070 2,020 1,920 2,060 2,420 2,020 2,100 2,250 2,070 2,280 1,400 1,500 1,500

EngineeringServices (Mechanical)

Light Industrial 10 10 9 10 12 10 10 10 10 11 10 11 10Attached Offices 235 230 220 235 275 230 240 265 235 260 150 210 220

EngineeringServices (Electrical)


EngineeringServices (Fire)


Construction Forecast – Industrial


0

1,000

2,000

3,000

4,000

5,000

6,000Forecast

A$m

2000

-2001

2001

-2002

2002

-2003

2003

-2004

2004

-2005

2005

-2006

2006

-2007

2007

-2008

2008

-2009

2009

-2010

2010

-2011

2011

-2012

2012

-2013

2013

-2014

2014

-2015

2015

-2016

2016

-2017

2017

-2018



Four: Cost D

ata and Market D

ataIndustrial Commentary

Prime Net Face Rents ($A/m2)

Prime Yields(%)

Sydney Prime 100 – 165 7.75 – 8.75Secondary 85 – 135 8.75 – 9.75Business Space/Hi-Tech 175 – 225 7.75 – 8.50

Melbourne Prime 73 – 125 7.75 – 8.75Secondary 50 – 90 9.50 – 11.00Business Space/Hi-Tech 150 – 250 7.50 – 9.00

Brisbane Prime 105 –115 8.25 – 9.00Secondary 90 – 100 9.25 – 10.00Business Space/Hi-Tech 175 – 225 8.50 – 9.25

Adelaide Prime 75 – 130 8.00 – 8.85Secondary 55 – 80 9.00 – 10.00Business Space/Hi-Tech 150 – 220 8.00 – 8.85

Perth Prime 110 – 120 7.75 – 8.50Secondary 75 – 90 8.75 – 9.25Business Space/Hi-Tech 100 – 125 8.00 – 8.50

Industrial Market Overview

The industrial sector was one of the worst hit during the downturn and except for a few select locations across the country, it is yet to show any solid indications of recovery. In some regions there is a threat of oversupply and diminishing demand, while in other regions the pause in supply during the downturn is leading to early signs of rental pressures over the medium term outlook.

The industry’s outlook remains cautious. Certain parts of the country are anticipating further buoyancy from the mining sector, but until this transpires there is little impetus for supporting industrial development in those areas.

However, port volumes are rising, with further infrastructure works planned to keep pace with rising export and import traffic. Total container activity for the year was up 3-6% in the nation’s largest ports, driven by commodity exports and a strong Australian dollar boosting import activity. Major road additions and upgrades have also been beneficial to the industrial sector.

The Construction Forecasting Council of Australia is expecting a gradual return to development activity from 2010-11 onwards, as confidence in the sector improves.

Key Challenges

Excluding a few owner-occupiers such as retailers looking to expand their distribution spaces, there has been very little development activity in the industrial sector. Speculative investment has been impeded by feasibilities constrained by low rental returns and difficulties securing finance.

Developers are generally reliant on tenants’ pre-commitment in order to get financing for industrial projects, although there have been several purchases of key land parcels which shows some confidence may be returning to this sector.

The industrial market continues to experience competitive conditions. With low activity levels – in industrial and other sectors – construction prices remain competitive, creating a very attractive environment for developers who can construct at low capital cost and sell or lease into a market.

Source: Knight Frank Research as at June 2010


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Low Rise: Less than 3 storeys; Medium Rise: 3-10 storeys; High Rise: 10+ storeys

*Inclusive of builder’s preliminaries & profit but exclusive of site works, external services, land and interest costs

A$/m2 NZ$/m2

Building Type Adela

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Medium QualityMulti Unit - Low Rise

1,970 1,920 1,830 1,960 2,300 1,930 2,000 1,960 1,970 2,170 1,900 2,000 1,950

High Rise 2,660 2,600 2,470 2,650 3,100 2,600 2,700 2,650 2,660 2,930 2,150 2,250 2,250High QualityLow Rise 2,760 2,690 2,560 2,740 3,220 2,700 2,800 2,740 2,760 3,040 2,300 2,500 2,400High Rise 3,000 2,930 2,780 2,990 3,510 2,940 3,050 2,990 3,000 3,320 3,250 3,300 3,000Podium Car Parking 835 700 775 835 975 820 850 835 835 925 650 650 650Basement Car Parking

1,330 1,100 1,230 1,320 1,550 1,300 1,350 1,250 1,330 1,470 1,000 1,100 1,200



78 76 74 78 92 78 80 78 78 86 106 106 106

High Rise (A/C inc.) 215 210 200 215 255 210 220 215 215 240 225 225 225High QualityLow Rise (A/C inc.) 196 192 182 196 230 192 200 196 198 218 240 240 326High Rise (A/C inc.) 285 280 265 285 335 280 290 285 285 315 300 300 325Podium Car Parking N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 35 35 35 Basement Car Parking

69 67 64 69 81 67 70 69 69 76 65 65 65



105 100 95 105 120 100 105 105 105 115 90 90 90

High Rise (A/C inc.) 120 115 110 120 140 115 120 120 120 130 130 130 130High QualityLow Rise (A/C inc.) 155 150 140 150 180 150 155 150 155 170 140 145 145High Rise (A/C inc.) 185 185 175 185 220 185 190 185 185 205 165 180 180Podium Car Parking 44 43 41 44 52 43 45 44 44 49 35 40 40Basement Car Parking

44 43 41 44 52 43 45 44 44 49 35 40 40



13 13 12 13 15 13 13 13 13 14 10 10 10

High Rise 64 63 59 64 75 63 65 64 64 71 60 60 65High QualityLow Rise (A/C inc.) 13 13 12 13 15 13 13 13 13 14 25 28 28High Rise 64 63 59 64 75 63 65 70 64 71 65 65 67Podium Car Parking 9 9 8 9 10 9 9 9 9 10 10 10 14Basement Car Parking

49 48 46 49 57 48 50 49 49 54 55 55 72



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0

2

4

6

Owner Occupiers Investors

First Home Owners Grant Boost

8

A$bn 10

12

14

16

18

20

Sep-0

7

Jun-0

7

Dec

-07

Mar-

08

Jun-0

8

Sep

-08

Dec-0

8

Mar-0

9

Jun-0

9

Sep-0

9

Dec-0

9

Mar-1

0

Jun-1

0

Housing Finance Trend

Australia’s residential sector has remained relatively resilient during the recent downturn compared to other sectors of the construction industry. While there are notable discrepancies between certain markets, for the most part residential building development has been ongoing, spurred on by the underlying fundamentals of the sector.

With an existing shortfall in dwellings further exacerbated by above trend migration levels in recent years, demand remained strong for residential accommodation. The Real Estate Institute of Australia reported that the national median average house price for the June quarter 2010 was 16% higher compared to the previous year, although this momentum is expected to cool off over the coming year. While there are less first home buyers than last year when there were more government incentives and lower interest rates, investors continue to be attracted by tight rental markets and the prospect for strong capital growth.

This trend is evident in the housing finance figures for owner-occupiers which have eased back to pre-stimulus levels. Investors have gradually returned to the market through 2010 with investor finance returning to levels last seen in early 2008. However, rising interest rates could stifle further activity in the market to some extent as the Reserve Bank of Australia grapples with inflationary pressures and the possible re-emergence of a two-speed economy.

Residential Commentary

Source: ABS 5609.0


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Population Growth vs Dwellings

Population Growth

Population growth continues to be a key factor in the demand for housing in Australia. Even though net migration rates softened in 2010, Australia’s average annual population growth over the last five years was 387,000 per annum – a 57% rise on the previous five year average of 246,000, whereas the housing supply side is not keeping up with this demand.

The National Housing Supply Council projections show that 3.2 million additional dwellings will be required to meet underlying demand by 2030, based on net migration, fertility rates and household formation trends. It estimates that the gap between demand and supply will grow to over 300,000 dwellings by 2014, and by 2030, the cumulative gap will be over 640,000 (based on assumptions of medium growth in supply and demand).

Supply Constraints

The building industry continues to face numerous challenges in the supply of new dwellings. Many developers experienced challenges in securing finance, with banks requiring higher levels of pre-commitment and tighter loan to value ratios.

Increasing demand for sustainability initiatives and the impact of the new BCA Part J amendments have added to the costs of construction. Planning hurdles also impacted the rate of housing supply, particularly in established areas where higher density development is strongly advocated for. The density debate is expected to gain prominence as industry and governments endeavour to make better use of established urban areas.Source: NHSC, ABS, REIA

Source: ABS 3101.0, ABS 4102.0

1.00

1.20

1.40

1.60

Australia Population Growth (annual) Australia New Dwellings Growth (annual)

1.80

2.00

2.20

1999

Perce

nt

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Deficit


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A$/m2 NZ$/m2

Building Type Adela

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Retail District Centre 1,760 1,720 1,630 1,750 2,060 1,730 1,790 1,750 1,760 1,950 1,350 1,400 1,400Regional Centre 2,340 2,290 2,170 2,330 2,740 2,290 2,380 2,330 2,340 2,590 1,550 1,600 1,600Strip Shopping 1,440 1,400 1,330 1,430 1,680 1,410 1,460 1,430 1,440 1,590 1,100 1,200 1,200


Local Shop. Centre (No Malls)

245 240 230 245 290 240 250 245 245 270 220 235 220

Regional Centre 295 290 275 295 345 290 300 295 295 325 260 295 280Strip Shopping 178 174 164 176 206 174 180 176 178 196 220 230 220



118 116 110 118 138 116 120 118 118 130 120 120 126




69 67 64 69 81 67 70 69 69 76 55 55 57


*See following page for footnote details.

Retail Construction

Retail Overview

Retail Commentary

Prime Net Face Rents ($A/m2) Prime Yields (%)Sydney Regional 1,500 – 2,000 6.00 – 7.00

Sub-Regional 750 – 950 7.25 – 8.25Neighbourhood 500 – 625 7.50 – 8.50Bulky Goods 200 – 300 8.00 – 9.25

Melbourne Regional 1,200 – 1,800 6.50 – 7.25Sub-Regional 550 – 900 7.25 – 8.25Neighbourhood 350 – 800 7.75 – 8.50Bulky Goods 200 – 300 8.00 – 9.25

Brisbane Regional 950 – 1,400 6.50 – 7.50Sub-Regional 675 – 900 7.75 – 8.75Neighbourhood 375 – 750 7.50 – 9.00Bulky Goods 175 – 270 8.00 – 9.50

Adelaide Regional 900 – 1,150 6.75 – 7.75Sub-Regional 600 – 750 8.50 – 9.00Neighbourhood 325 – 550 7.25 – 8.25Bulky Goods 175 – 270 9.50 – 10.50

Perth Regional 1,000 – 1,500 6.75 – 7.25Sub-Regional 600 – 900 7.50 – 8.25Neighbourhood 350 – 650 8.00 – 8.50Bulky Goods 190 – 235 8.00 – 9.00

The retail sector has not suffered as much as expected during the global financial crisis. Heavily discounted sales, low interest rates and fewer job losses than expected have all buoyed the sector. Although 2008-2009 and 2009-2010 saw very little new retail stock, projections for 2010-2011 are increasingly positive. Construction value is expected to grow by 16%, equating to approximately A$5 billion in new retail construction projects.

Source: Knight Frank Research as at June 2010



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Mechanical – Rates are for typical base building (excluding fit-out) mechanical services commensurate with the standard of building indicated, including as appropriate, statutory essential mechanical services

Electrical – Rates are for typical base building (excluding fit-out) electrical services commensurate with the standard of building indicated, including light and power, statutory essential services and where appropriate, communications, security and MATV back bone systems

Fire – Rates are for statutory base building (excluding fit-out) fire services including, as appropriate, hydrants, hose reels, alarms and/or sprinklers

A$/m2 NZ$/m2

Building Type - Hotel incl. FF&E Ad

elaide

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Resort 3,440 3,370 3,200 3,430 4,020 3,370 3,500 3,430 3,450 3,800 2,700 2,750 2,700

3 Star Budget 2,760 2,690 2,560 2,740 3,220 2,700 2,800 2,850 2,760 3,040 2,700 2,700 2,700

5 Star/Luxury 3,840 3,750 3,560 3,820 4,490 3,760 3,900 4,250 3,840 4,240 3,500 3,600 3,500

Suburban Motel 2,160 2,120 2,010 2,160 2,530 2,120 2,200 2,200 2,170 2,390 2,250 2,500 2,500


Resort 325 315 300 325 380 320 330 325 325 360 400 350 300

3 Star Budget 280 275 260 280 330 275 285 350 280 310 260 270 270

5 Star/Luxury 415 405 385 410 485 405 420 550 415 455 350 350 345

Suburban Motel 206 202 192 206 242 202 210 206 206 228 206 250 248


Resort 205 200 190 205 240 200 210 205 205 230 230 230 260

3 Star Budget 190 190 180 190 225 190 195 200 190 210 270 270 270

5 Star/Luxury 265 260 245 265 310 260 270 265 265 295 300 300 320

Suburban Motel 138 134 128 138 162 134 140 138 138 152 136 136 190


Resort 60 58 54 58 70 58 60 58 60 66 66 66 62

3 Star Budget 74 72 68 74 86 72 76 74 74 82 56 56 72

5 Star/Luxury 94 92 86 94 110 92 96 94 94 104 66 66 72

Suburban Motel 20 19 18 20 23 19 20 20 20 22 15 15 17

Tourism Commentary

The tourism sector in Australia has seen steady growth from the international and domestic markets. In response to the global financial crisis and against the backdrop of a 4.3% decline in global tourism, Australia has outperformed the rest of the world and is now poised for future growth.

In 2009-2010 the value of building work completed on accommodation associated with tourism represented around A$1.1 billion. Although this was a decline on the previous year, it is a likely reflection of the difficult operating environment in the accommodation industry in 2009 combined with tighter credit conditions.



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Construction Forecast – Tourism


Tourism Commentary (cont.)

Sports and Recreation Commentary

0

200

400

600

800

1,000

1,200

1,400

1,600Forecast

A$m

2000

-2001

2001

-2002

2002

-2003

2003

-2004

2004

-2005

2005

-2006

2006

-2007

2007

-2008

2008

-2009

2009

-2010

2010

-2011

2011

-2012

2012

-2013

2013

-2014

2014

-2015

2015

-2016

2016

-2017

2017

-2018

The top destinations attracting the majority of international visitor expenditure are Sydney, Melbourne, the Gold Coast, Queensland and Perth. These destinations have seen government and private sector investment commitments for maintenance and development of significant tourism venues to attract visitors to existing well established destinations.

Australia maintains its position on the global stage as a home for sports events at an elite level with world class sports precincts such as Sydney Olympic Park and Melbourne Olympic Park, which was recently voted by Sports Business World as the best sporting precinct in the world.

Federal and State Governments plus the private sector continue to invest heavily in sports infrastructure for established events including the Australian Open and the Australian Grand Prix plus new bids for the Gold Coast Commonwealth Games in 2018 and the FIFA World Cup in 2022.

Stadia, arenas, aquatic centres, sports halls, and multi-purpose venues are seen as playing an integral part in providing a sense of community within society, activating areas for development as part of larger mixed use developments and promoting a sustainable legacy for future generations.

Individual communities in Australia continue to benefit from a strong rate of investment in regional sporting and community hubs, comprising aquatic centres, multi-purpose sports facilities and outdoor sports precincts catering for the wide variety of sporting activities pursued by the public. This area of the sports sector has benefited considerably from the Commonwealth Governments' regional and local community infrastructure investment programmes.


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aHealth and Aged Care Construction

*Inclusive of builders preliminaries and profit but exclusive of site works, external services, land and interest costsMechanical – Rates are for typical base building (excluding fit-out) mechanical services commensurate with the standard of building indicated, including as appropriate, statutory essential mechanical services Electrical – Rates are for typical base building (excluding fit-out) electrical services commensurate with the standard of building indicated, including light and power, statutory essential services and where appropriate, communications, security and MATV back bone systemsFire – Rates are for statutory base building (excluding fit-out) fire services including, as appropriate, hydrants, hose reels, alarms and/or sprinklers

Health Commentary

A$/m2 NZ$/m2

Building Type Adela

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Health District Medical Centre

3,100 3,030 2,880 3,090 3,620 3,040 3,150 3,090 3,100 3,420 1,900 2,000 2,400

District Hospital 3,720 3,640 3,450 3,700 4,350 3,640 3,780 3,700 3,720 4,110 3,800 4,100 3,800

Nursing Home (A/C inc.)

2,560 2,500 2,370 2,550 2,990 2,510 2,600 2,800 2,560 2,830 2,700 2,800 2,700


District Medical Centre

355 345 330 355 415 345 360 355 355 390 300 290 280

District Hospital 550 540 510 550 645 540 560 550 550 610 525 580 565Nursing Home 255 250 235 255 300 250 260 255 255 285 220 260 260



295 290 275 295 345 290 300 295 295 325 350 360 360




69 67 64 69 81 67 70 69 69 76 45 45 45


The Health sector continues to be a major contributor to the construction industry, with planned future expenditure brought forward to support the construction industry during the GFC. In 2009-2010 building approvals for health projects leapt to A$5.8 billion – or 17% of total non-residential projects – compared to just A$1.8 billion in 2008-2009.

The predicted increase in health construction activity over the next two years will be largely driven by projects that were announced one to three years ago. This is witnessed by the unprecedentedly high volume of building approvals during 2009-2010 that will support construction workloads over the coming years.

Demand for health facilities remains high as a result of strong population growth which is exacerbated by the nation’s ageing population. Major investment is planned for all types of health facilities including mental health, multi-use health centres, aged care and major tertiary facilities are planned for major investment.

Funding remains a constraint, particularly for states whose economies have suffered during the GFC. However, most states have ambitious health capital works expenditure programmes over the next few years in addition to the Federal Government’s commitment to reallocate funding to regional areas as part of the 2010 federal election agreement. It is anticipated that the health sector’s contribution to the construction industry will remain dominant for several years.



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0

1,000

2,000

3,000

4,000

5,000Forecast

A$m

2000

-2001

2001

-2002

2002

-2003

2003

-2004

2004

-2005

2005

-2006

2006

-2007

2007

-2008

2008

-2009

2009

-2010

2010

-2011

2011

-2012

2012

-2013

2013

-2014

2014

-2015

2015

-2016

2016

-2017

2017

-2018

Construction Forecast – Health and Aged Care


Aged Care Commentary

Source: ABS, Department of Health and Ageing, Davis Langdon Research

The number of people aged 70+ in Australia is rapidly increasing, causing an anticipated increase in demand for aged care and independent living facilities. The population within this demographic will increase by 1.1 million or 56% by 2020. Consequently, demand for residential Aged Care facility beds in Australia is expected to increase from approximately 208,000 to 325,000 beds in this same period based on demographics and existing penetration rates of 10.4%.

Senior living residents are also demanding more of their providers in terms of extra services, activities, technology access and sustainable design. The challenge for the industry is delivering on these demands, balanced with developing and operating viable facilities within an increasingly competitive landscape.

The need for traditional residential care will continue to grow, but with the majority of ageing Australians preferring to stay in their homes as long as possible and continued government focus on less costly non-residential care options such as home and community care, it is likely that options such as retirement villages, apartments and affordable housing options will grow at a faster rate.

The retirement village industry is predicted to be one of the fastest growing property sectors, with projected investment in construction in excess of A$40 billion over the next 15 years. Currently the portion of the population living in retirement villages is 5.25% and could rise to 7.5%-8.0% in the next 15 years. It is estimated that as many as 600 new villages will be required in addition to the existing 1,750 to support this demand.


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Construction Forecast – Education


*Inclusive of builders preliminaries and profit but exclusive of site works, external services, land and interest costsMechanical – Rates are for typical base building (excluding fit-out) mechanical services commensurate with the standard of building indicated, including as appropriate, statutory essential mechanical services Electrical – Rates are for typical base building (excluding fit-out) electrical services commensurate with the standard of building indicated, including light and power, statutory essential services and where appropriate, communications, security and MATV back bone systemsFire – Rates are for statutory base building (excluding fit-out) fire services including, as appropriate, hydrants, hose reels, alarms and/or sprinklers

A$/m2 NZ$/m2

Building Type Adela

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Education

Primary Schools 1,430 1,390 1,320 1,420 1,670 1,400 1,450 1,800 1,430 1,580 1,900 1,900 1,900

Secondary Schools 1,670 1,640 1,550 1,670 1,950 1,640 1,700 2,200 1,670 1,850 2,300 2,300 2,300


Primary and Secondary Schools

118 116 110 118 138 116 120 120 118 130 66 48 176

Primary and Secondary Schools (A/C inc.)

215 210 200 215 255 210 220 230 215 240 220 255 255



255 250 235 255 300 250 260 255 255 285 125 125 145



30 29 27 29 35 29 30 29 30 33 26 25 25

0

2,000

4,000

6,000

8,000

10,000

2000

-2001

2001

-2002

2002

-2003

2003

-2004

2004

-2005

2005

-2006

2006

-2007

2007

-2008

2008

-2009

2009

-2010

2010

-2011

2011

-2012

2012

-2013

2013

-2014

2014

-2015

2015

-2016

2016

-2017

2017

-2018

Forecast

A$m



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Source: ABS 8752.0, Davis Langdon Research

Education Commentary

National Non-Residential Construction Activity

4

3

5

6

7

8

9

10

Stimulus Boost

A$bn

Sep-0

3

Mar-0

4

Sep-0

4

Mar-0

5

Sep-0

5

Mar-0

6

Sep

-06

Mar-

07

Sep-0

7

Mar-

08

Sep-0

8

Mar-0

9

Sep-0

9

Mar-1

0

Work Done (Excluding Stimulus Funding) Total Work Done (Including Stimulus Funding)

In March 2009 the Federal Government announced the A$42 billion Nation Building Economic Stimulus Plan of which $16.2 billion was allocated to improving facilities in all schools around the country as part of the Building the Education Revolution (BER). The task faced by the industry to deliver 24,000 projects across 9,400 schools with short lead times was undoubtedly a challenge the construction industry has never faced before on a national scale.

During late 2008 non-residential construction activity levels declined sharply and fear of a prolonged economic slowdown was at the time justified as global activity was expected to contract for the first time in 60 years. Domestically, the decline was evident in all sectors across state and territory markets. However in 2010, demand has begun to rise and confidence has returned to the market.

The expedited BER projects ensured that workloads continued in lieu of diminished private sector activity. The program stimulated non-residential construction activity levels through 2009-2010 and as a consequence, planned activity levels were maintained close to the 10 year trend.


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aMajor Rates for Australia and New Zealand

Rates are subcontract rates inclusive of labour and material fixed in position complete and include competitive margins for overhead and profit; are for projects constructed in the CBD area of average specification and of medium/high rise constructionThe rates are net of GSTThe rates are not intended to be used for tendering and/or the assessment of variationsThe rates are net of preliminariesSource: Davis Langdon Research

A$/m2 NZ$/m2

Description Unit Adela

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Basement Excavation m³ 44 35 41 44 52 43 45 44 44 49 30 30 25

Foundation Excavation m³ 84 95 78 83 98 82 85 60 84 92 45 45 40

Imported Structural Fill m³ 94 80 86 94 110 92 96 26 94 104 70 70 60

Concrete in Pad Footing (25MPa) m³ 270 250 250 270 315 265 275 285 270 300 285 295 230

Concrete in Wall (32MPa) m³ 310 285 290 310 360 305 315 355 310 340 295 300 280

Concrete in Suspended Slab (32MPa) m³ 285 260 265 285 335 280 290 325 285 315 290 295 270

Formwork to Slab Soffit m² 130 110 120 125 150 125 130 145 130 140 135 140 140

Formwork to Side and Soffit of Beam m² 118 116 110 118 138 116 120 156 118 130 146 150 100

Precast Wall Panel Architectural with Sand Blast Finish

m² 405 395 375 400 470 395 410 400 405 445 300 320 280

Reinforcement in Beam t 2800 2300 2600 2790 3280 2750 2850 2500 2810 3100 2500 2800 2750

Structural Steel in Beam t 6400 6000 5930 6370 7470 6270 6500 6370 6400 7070 4000 4500 5500

Structural Steel in Truss t 6790 6300 6300 6760 7930 6650 6900 6760 6800 7500 5000 6000 6000

Aluminium Framed Window 6.5mm Clear Glass

m² 610 595 565 610 715 600 620 610 610 675 400 490 450

Aluminium Panel Curtain Wall System (including structural system)

m² 875 855 815 870 1025 860 890 870 875 965 650 800 750

Steel Stud Partition (framing) m² 37 37 35 37 44 37 38 42 37 41 35 40 35

Plasterboard 13mm thick to Partition m² 31 31 29 31 37 31 32 31 32 35 25 35 25

Suspended Mineral Fibre Ceiling Tile m² 47 46 44 47 55 46 48 50 47 52 40 45 40

Paint on Plasterboard Wall m² 10 11 9 10 12 10 10 10 10 11 10 11 12

Ceramic Tiles to Wall m² 138 134 128 138 162 134 140 138 138 152 120 130 120

Non Slip Vinyl to Wet Areas m² 68 66 62 68 80 66 70 68 68 76 76 76 80

Anti Static Carpet Tile to Office & Admin Areas

m² 60 58 54 58 70 58 60 58 60 66 60 70 70

Anti Static Broadloom Carpet to Office & Admin Areas

m² 58 56 52 56 66 56 58 56 58 64 40 46 50

Aluminium Framed Shopfront m² 570 560 530 570 665 560 580 570 570 630 400 400 475


Four: Cost D

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ataAustralian Labour Material Ratios

Labour Material Plant

Air Conditioning Specialist 35% 65% 0%

Bricklayer & Blocklayer 50% 50% 0%

Carpenter 45% 55% 0%

Carpet Layer 10% 90% 0%

Demolish 85% 5% 10%

Drainer 60% 40% 0%

Electrical 40% 60% 0%

Excavator 38% 10% 52%

Fire Service 45% 55% 0%

Formworker 70% 30% 0%

Glazier 20% 80% 0%

In Situ Concretor 25% 75% 0%

Joiner 15% 85% 0%

Lifts 25% 75% 0%

Mason 10% 90% 0%

Metalworker 25% 75% 0%

Painter 75% 25% 0%

Pavior 75% 25% 0%

Piler 20% 55% 25%

Plasterer 40% 60% 0%

Precast Concretor 20% 80% 0%

Preliminaries 40% 10% 50%

Reinforcement Fixer 20% 80% 0%

Roadworker & External Pavior 15% 85% 0%

Structural Steelwork 10% 90% 0%

Suspended Ceiling Fixer 40% 60% 0%

Tiler 55% 45% 0%


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Home HQ, Artarmon, New South Wales


Five: Property Investm

ent Information

Five:

Property Investment

Information

Property Taxes 46

Due Diligence 48

Commercial Building Disclosure 49

Make Good Works 49

Importance of Tax Depreciation 50

Short Term Interest Rate Movements 51

Efficiency Factors 51


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Australian Capital Territory

New South Wales

Northern Territory

Queensland

South Australia

Tasmania

Victoria

Western Australia

Value DutyUp to $100,000 $20 or $2 per $100 or part thereof$100,001–$200,000 $2,000+$3.50 per $100 in excess of $100,000$200,001–$300,000 $5,500+$4 per $100 in excess of $200,000$300,001–$500,000 $9,500+$5.50 per $100 in excess of $300,000$500,001–$1,000,000 $20,500+$5.75 per $100 in excess of $500,000Above $1,000,000 $49,250+$6.75 per $100in excess of $1,000,000

Up to $14,000 $1.25 per $100 or part of dutiable value$14,000–$30,000 $175+$1.50 per $100 in excess of $14,000$30,000–$80,000 $415+$1.75 per $100 in excess of $30,000$80,000–$300,000 $1,290+$3.50 per $100 in excess of $80,000$300,000–$1,000,000 $8,990+$4.50 per $100 in excess of $300,000Above $1,000,000 $40,490+$5.50 per $100 in excess of $1,000,000Premium Property Duty >$3million $150,490+$7 for every $100 in excess of $3,000,000

Up to $5,000 Nil$5,001–$75,000 $1.50 per $100 in excess of $5,000$75,000–$540,000 $1,050+$3.50 per $100 in excess of $75,000$540,000–$980,000 $17,325+$4.50 per $100 in excess of $540,000Above $980,000 $37,125+$5.25 per $100 in excess of $980,000

Up to $12,000 $1 per $100 or part of $100$12,000–$30,000 $120+$2 per $100 in excess of $12,000$30,000–$50,000 $480+$3 per $100 in excess of $30,000$50,000–$100,000 $1,080+$3.50 per $100 in excess of $50,000$100,000–$200,000 $2,830+$4 per $100 in excess of $100,000$200,000–$250,000 $6,830+$4.25 per $100 in excess of $200,000$250,000–$300,000 $8,955+$4.75 per $100 in excess of $250,000$300,000–$500,000 $11,330+$5 per $100 in excess of $300,000Above $500,000 $21,330+$5.50 per $100 in excess of $500,000

Up to $1,300 $20$1,301–$10,000 $1.50 per $100 or part of $100$10,001–$30,000 $150+$2 per $100 in excess of $10,000$30,001–$75,000 $550+$2.50 per $100 in excess of $30,000$75,001–$150,000 $1,675+$3 per $100 in excess of $75,000$150,001–$225,000 $3,925+$3.50 per $100 in excess of $150,000Above $225,000 $6,550+$4 per $100 in excess of $225,000

Up to $25,000 1.4%$25,001–$130,000 $350+2.4% of above $25,000$130,001–$440,000 $2,870+6% of above $130,000$440,001–$550,000 $18,370+6% of above $440,000$550,001–$960,000 $28,070+6% of above $550,000Above $960,000 5.5% of dutiable value

Up to $80,000 $1.90 per $100 or part of $100$80,001–$100,000 $1,520+$2.85 per $100 in excess of $80,000$100,001–$250,000 $2,090+$3.80 per $100 in excess of $100,000$250,001–$500,000 $7,790+$4.75 per $100 in excess of $250,000Above $500,001 $19,665+$5.15 per $100 in excess of $500,000

Up to $525,000 .065*V2+15V where V is Value/1000Above $525,000 4.95% of total value

Real Property Stamp Duty



ent Information

Land Taxes and Stamp Duties – as at September 2010


New South Wales

Queensland

South Australia

Tasmania

Victoria

Western Australia

Taxable Land Value Land TaxResidential:$0–$75,000 0.60%$75,001–$150,000 0.89%$150,001–$275,000 1.15%$275,001 and above 1.40%Commercial:$0–$150,000 0.89%$150,001–$275,000 1.25%$275,001 and above 1.59%

Up to $376,000 Nil$376,000–$2,299,000 $100+1.6% for amount in excess of $376,000$2,299,000 and above $100+2.0% for amount in excess of $2,299,000

+1.6% for amount in excess of $376,000Companies & Trusts:$0–$349,999 Nil$350,000–$2,249,999 $1,450+1.7% of above $350,000$2,250,000–$4,999,999 $37,500+1.5% of above $2,250,000$5,000,000 and above $75,000+ 0.2% of above $5,000,000Individuals:$0–$599,999 Nil$600,000–$999,999 $500+ 0.01% of above $600,000$1,000,000–$2,999,999 $4,500+1.65% of above $1,000,000$3,000,000–$4,999,999 $37,500+1.25% of above $3,000,000$5,000,000 and above $62,500+1.75% of above $5,000,000

$0–$300,000 Nil$300,001–$550,000 $0.50 for every $100 in excess of $300,000$550,001–$800,000 $1,250+$1.65 for every $100 in excess of $550,000 $800,001–$1,000,000 $5,375+$2.40 for every $100 in excess of $800,000 Above $1,000,000 $10,175+$3.70 for every $100 in excess of $1,000,000

Up to $24,999 Nil$25,000–$349,999 $50+0.55% of above $25,000$350,000–$749,999 $1,837.50+2% of above $350,000$750,000 and above $9,837.50+2.5% of above $750,000

$0–$250,000 Nil$250,000–$600,000 $275+0.2% of above $250,000$600,000–$1,000,000 $975+0.5% of above $600,000$1,000,000–$1,800,000 $2,975+0.8% of above $1,000,000$1,800,000–$3,000,000 $9,375+1.3% of above $1,800,000$3,000,000 and above $24,975+2.25% of above $3,000,000

$0–$300,000 Nil$300,000–$1,000,000 0.09 cents for each $1 in excess of $300,000$1,000,000–$2,200,000 $630+0.47 cents for each $1 in excess of $1,000,000$2,200,000–$5,500,000 $6,270+$1.22 for each $1 in excess of $2,200,000$5,500,000–$11,000,000 $46,530+$1.46 for each $1 in excess of $5,500,000$11,000,000 and above $126,830+$2.16 for each $1 in excess of $11,000,000

No Land Tax is payable in Northern TerritoryNorthern Territory


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Corporate governance standards require objective and comprehensive due diligence for property acquisition

Due Diligence

Due diligence prior to a property purchase must be an integrated process that recognises that each of the component parts impacts upon the other, the price of the asset and the holding and recurrent cost of the property. Each part cannot be treated in isolation:

Accordingly, a useful due diligence audit for any prospective owner/investor must identify all of the issues surrounding the inherent physical condition of the property as they relate to and/or impact upon future capital expenditure, valuation, the lease or leases and the commercial legal documentation.

Usually the technical due diligence report includes a review of all matters affecting and impacting upon building compliance, fabric, façade, structure, finishes and services as well as the environment together with land, title and photographic surveys. Other items such as assessment of current green performance, tax depreciation schedules, town planning and geological surveys may be included depending on the type of property and the ownership strategy.

VALUATION• right price of acquisition• future capital expenditure

provided for• certainty of market and revenue

streams• demographics

PHYSICAL• condition, performance and maintenance of building fabric

and services• regulatory and essential

services compliance• lettable areas title, easements

and encroachments• environmental issues

• town planning

• maintenance• capital expenditure• outgoings• insurance• tax depreciation• Green Star/NABERS energy

performance• asset registersOTHER

• lease conditions• contracts of sale

• development agreements• agreements to lease

LEGAL

DUE

DILIGENCE



ent Information

The Building Energy Efficiency Disclosure Bill was passed in June 2010 by the Australian Parliament, enforcing Commercial Building Disclosure from November 2010. Vendors, landlords and sub-landlords of buildings or parts of a building that have office areas in excess of 2,000m2 are required to disclose the energy efficiency upon sale or lease of a whole building, tenancy or sublease space.

During the transitional period from 1 November 2010 to 31 October 2011, the only requirement will be the disclosure of a valid NABERS Energy base or whole building rating. From 1 November 2011 all prospective tenants or buyers must be provided with a Building Energy Efficiency Certificate (BEEC) which is valid for one year that includes:

• a NABERS Energy rating• an assessment of tenancy lighting in the area of the building that is being sold or leased• suggestions on how to improve the energy efficiency of the buildingThese regulations will have significant ramifications for property owners. Building owners are strongly advised to be fully prepared for the requirements of this scheme – comprehensive advice is vital in order to reduce any future unexpected costs.Make Good Works

Tenant Make Good obligations almost invariably lead to disputes between landlord and tenant at the end of the lease term with consequent additional costs.

RICS Australia published a Best Practice Guidance Note and Protocol in relation to schedules of make good works in late 2004. This was endorsed by the Property Council of Australia, to provide professional objectivity and benchmarking and introducing best practice procedures for the make good process for the benefit of both landlord and tenant.

The Schedule identifies alleged breaches of covenant within the lease, and cross references the relevant lease clauses with the state of repair or breach and the cost to make good. This assists in highlighting the landlord’s rights and provides clarity to the tenant regarding their lease obligations.Types of Schedules of Make Good

Final ScheduleA Schedule of Make Good is usually served on the tenant no more than six months before lease expiry in regarding to work requiring completion at expiry or earlier termination of the lease. The outcome can be either a cash settlement or physical make good by the tenant. However, normally a cash settlement is agreed.

Interim ScheduleA Schedule of Make Good can be served during the lease term identifying items of disrepair where the tenant has failed to comply with the repairing and maintenance covenants of the lease which require remedy during the lease term. The outcome is physical make good and focuses the tenant on his/her repair and maintenance obligations.

Schedule of ConditionPreparation of a Schedule of Condition prior to lease commencement is recommended to record the condition of the premises, listing of landlord’s fixtures and other relevant information, by written and photographic record, which should be agreed to by the landlord and tenant. It should be referenced in and attached to the lease document. These recommended practices limit make good disputes at the end of the lease. With more tenants engaging tenant representation, tenants and landlords are appreciating the benefits of utilising the above processes.

Building Energy Efficiency Disclosure Act 2010 (Commercial Building Disclosure)


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nImportance of Tax Depreciation

Taxation advantages offered in the form of depreciation allowances are particularly important to property owners and portfolio managers alike. Significant benefits are available to owners of properties that produce income, whether they are an owner-occupier of a commercial building or the owner of any property available for lease. The financial benefits obtained in maximising depreciation are worthy of specialist advice.

Divisions 40 and 43 of the Income Tax Assessment Act 1997 contain the laws governing depreciation.

Type of Property Range of Division 40 Depreciation Assets Content

Residential 5 – 30%Hotel 15 – 50%CBD Office 30 – 55%Office Fit-out 40 – 80%Shopping Centre 30 – 60%Industrial 5 – 45%

Division 43 of the Act relates to an allowance for capital works or structural improvement. This relates to the structural envelope of a building or hardstandings, carparking, etc which are outside the footprint of the building but within the site. This allowance is calculated on the original cost of construction, not the cost of acquisition. The construction cost of older buildings is not always known and specialist advice should be sought in this regard. It is not possible to estimate a range of values for allowances under Division 43 as they are building and date-specific.

Division 43 – Capital Works or Structural Improvement

Division 40 of the Act deals with the allowances that relate to depreciable assets such as plant, equipment or furnishings. These have a defined or definite effective life after which they are deemed to have a zero value.

Every year the Australian Tax Office updates the list of effective lives for hundreds of items. Special provisions are made for plant in high use situations that may have a shorter life than usual, or items that have a life terminated by a special event. For depreciation, the purchase cost is used as the base cost or a portion where it is part of a larger acquisition. Specialist advice is often required to ascertain the true apportionment of costs.

The table below illustrates a range of allowances that could be available under Division 40 for various property types.

Division 40 – Depreciable Assets



ent Information

Short Term Interest Rate Movements

Efficiency Factors

Efficiency Factors of Various Building Types (Net Useable Area/Gross Floor Area)

0.00

2.00

4.00

6.00

8.00

10.00

14.00

16.00

12.00

18.00

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Perc

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Australia JapanNew Zealand* United Kingdom United States Euro area

2009

2010

Efficiency Factor Range Net Useable AreaOffices CBD 82% – 89% Net Lettable Area

Suburban 90% – 95%

Hotels 5 Star 85% – 92% Includes accommodation, back of house, front of house and circulation3 Star 90%

Resort 90% – 92%Service Apartment 90%

Retail Regional 75% – 80% Net Lettable AreaSub-Regional 80% – 85%Neighbourhood 80% – 85%Bulky Goods 85% – 95%Home Centre 90%

Hospital Department Net/Department Gross 75% – 80%Total Department Net/Gross Floor Area 80% – 85%

Nursing Home 85% Includes accommodation, support area and circulation area

Apartments Low Rise 90% Includes apartments, circulation area and lobbiesHigh Rise 75% – 85%

*Interbank lending rate used prior to the establishment of an official cash rate


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Sydney Town Hall, Sydney, New South Wales


Six: Emerging Trends

Six:

Emerging Trends

Population Projections: – Urban Planning 54

– Infrastructure Investment and Labour Force 56

Disability Standards 58

Building Energy Efficiency Disclosure Act 2010 60

Corporate Social Responsibility Commitment 61


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How is planning tackling the housing shortage?One of the key issues facing Australia is the need for housing in light of rapid population growth. Planning can respond by targeting strategic areas for growth and streamlining approval processes. Development is maximised in key areas and private and public housing is designed to complement the surrounding area.

CommonwealthThe National Housing Supply Council monitors land supply and dwelling construction in relation to projected demand. Several programs have been initiated to tackle housing affordability:

• the Building Better Regional Cities would invest $200 million to build up to 15,000 affordable homes in regional cities. Councils would receive funding for infrastructure to support regional centres that are experiencing positive employment and population growth

• the Social Housing Initiative, part of the Commonwealth’s Nation Building Economic Stimulus Plan, will provide $5.2 billion over three years to 2012 for social housing

• the National Rental Affordability Scheme encourages private and non-profit housing developers to provide affordable rental housing by offering tax credits or grants. It aims to increase the supply of affordable rental dwellings by up to 50,000 by 2012

What is being done – state by stateVictoriaMelbourne’s population is predicted to reach over 7 million people by 2051. In August 2010, the Victorian Parliament legislated to expand Melbourne’s urban growth boundary. Land will be re-zoned for urban development to accommodate 284,000 of the 600,000 new homes required in Melbourne by 2030.

This means that approximately 316,000 dwellings will need to be built in Melbourne’s established areas where public transport and other services are available – although issues of capacity will need to be considered. Lessons have been learnt from the Nation Building Economic Stimulus Plan in terms of facilitation of infill housing and it is hoped some of these initiatives may improve the efficiency of supply. For example, consultants were appointed to certify planning applications with a review mechanism established at state government level.

Population ProjectionsUrban Planning

Australian Population Projections

20

24

28

32

36

40

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

2044

2046

2048

2050

Millio

n

High Medium Low

Source: ABS 3222



New South Wales New South Wales has a number of strategies designed to keep up with projected demand; the Department of Planning is aiming for an additional 640,000 homes in Sydney by 2031.

Whilst the NSW planning system is relatively complex compared with other states, the government has sought to increase housing through the Affordable Rental Housing State Environmental Planning Policy:

• encouraging partnerships between the private and community housing sector by offering density bonuses for constructions that include a portion of affordable housing

• streamlining the development assessment process for affordable housing• assisting in the provision of affordable housing near major employment areas• allowing the development of boarding homes in all appropriate zones• allowing the development of secondary dwellings (granny flats) in all residential zonesThe NSW Housing Code also allows faster application assessments (10 days) for one or two storey homes. These initiatives provide an incentive to supply both private and affordable housing by streamlining approval timeframes and other bonuses.

Queensland The Queensland Housing Affordability Strategy aims to get land and housing on the market quickly by reducing the timelines and associated holding costs required for new housing. The strategy includes:

• establishment of an Urban Land Development Authority (ULDA)• improving the planning and development assessment process • increasing the supply of land ready for development • regulating infrastructure charging plans across the state• designating land for housing in regional areas of high demandThe ULDA improves housing affordability and streamlines the planning process in key urban development areas, where the ULDA may assume the planning power of local government and some state agencies. Currently, the government is working with the ULDA, local government and the development industry to accelerate 42 greenfield areas in South-East Queensland. It is envisioned that these greenfield areas will provide significant investment opportunities, with certain areas already zoned for residential development.

Western Australia The Western Australia Planning Committee (WAPC) is the statutory authority for urban, rural and regional land use, planning and land development. The WAPC and the Department of Planning anticipate the construction of 9,796 dwellings in the Perth and Peel regions in 2010-2011, with more than 74,000 conditional residential lots currently approved across WA.

In an effort to keep up with the area’s growing population, the government launched its 'Directions 2031 and Beyond' program, which includes a target of 47% infill development. Housing growth targets for local governments in the Perth and Peel regions will aim to encourage greater medium density development. Additional reforms include the Development Assessment Panels which will streamline the development approval process and the expansion of the online subdivision approvals system.

The Urban Development Program is also being prepared and will act as a land and infrastructure staging strategy intended to deliver more effective land use and development in areas targeted as priority.

Population Projections (cont.)


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A ‘Big Australia’ will inevitably occur and the country needs to come to grips with infrastructure expenditure in the trillions of dollars as the population heads towards 40 million.

As Australia’s population grows, so too does the need for infrastructure and support for the resources sector. The high level of demand for skilled labour in this sector is a challenge for the future.

Davis Langdon’s research into projected infrastructure sector growth examined the aggregate investment in road, rail, electricity generation and distribution, water storage and supply, sewerage, telecommunications, ports and heavy industry.

The findings reveal that annualised work by 2050 could be as high as 350% of today’s annual investment. This will be required in order to support the infrastructure demands of a population of almost 40 million and a resilient resources boom.

The question of how big and how fast the population will grow by 2050 is subject to various supply and demand scenarios, but either way the property and construction industry is destined for significant investment in new and upgraded infrastructure and public services.

The growing need for transportation, utilities and distribution of imports and exports requires planning and skills training to support these service areas.

Australia’s prosperous economy, shortages in labour force and high standards of living are all attractions to foreigners looking to call Australia home, and the potential impact of a growing population on existing infrastructure requires a highly efficient and viable growth strategy.

The Australian Bureau of Statistics (ABS) has released three estimates of Australia’s population by 2050 ranging from 30.2 million up to 39.6 million. In addition to the three population scenarios, Davis Langdon investigated three infrastructure demand scenarios.

Infrastructure Investment and Labour Force


0

500

1,000

1,500

2,000

2,500

1989

1990

1987

1988

1991

1992

1997

1998

1999

2000

1995

1996

1993

1994

2003

2004

2001

2002

2005

2006

$/cap

ita

2007

2008

2009

3,000

3,500

High ProjectionMedium ProjectionLow Projection

Infrastructure Investment per Capita

Values converted to 2010 dollarsSource: ABS, Davis Langdon Research



Low infrastructure investment and low population projections would see the existing construction workforce grow by 170,000 (or 23%) by 2050, while high infrastructure investment and high population projections – the more likely scenario – would result in an expansion of 2,187,000 jobs (or almost three times more than current levels).

Labour efficiency in the infrastructure sector has doubled over the past six years of the resources boom – improving from 16 jobs per million dollars of work done to 8.9. But there are limitations on just how far this efficiency factor can improve.

Currently, Australia’s infrastructure labour force equates to 3.3% of the total population but if demand for resources projects, community-based services and infrastructure continues to follow recent trends, this sector’s employment would represent up to 7% when compared to ABS population projections.

The impact of population growth will have a significant bearing on future economic prosperity as Australia’s construction industry represents 7% of the National Gross Domestic Product.

High trade-based employment growth will be required to support the expanding resources industry, which will unquestionably require significant levels of skilled migration in the future.

The resources boom has drawn trade-based resources to the minerals states of Western Australia and Queensland in search of the higher remuneration on offer. Consequently, a skills shortage has been developing in all states over recent years as ‘backfill’ trade employment in other states is left unfilled.

Early planning remains the key to sustaining future performance of the sector and preventing exacerbated skills shortages and wage price escalation as Australia grows as a nation.


Infrastructure Labour Force Projections

Population Projection Scenarios

Low

Mediu

m

High

Infrastructure Investment Projection Scenarios

Low Projection 907,000 1,021,000 1,191,000

Medium Projection 1,568,000 1,764,000 2,058,000

High Projection 2,228,000 2,508,000 2,925,000

Source: Davis Langdon Research Current infrastructure labour force = 738,000 (ABS 6291.0)


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sDisability Standards

The Australian Government’s Disability Discrimination Act 1992 (DDA) prohibits discrimination against people with a disability or their associates in a range of areas including transport, education, employment, accommodation and premises to which the public is entitled to enter or use.

To date, the DDA had not referenced a technical standard outlining detailed requirements for providing access to premises. Previously a number of Australian Standards provided direction. The new Disability (Access to Premises – Buildings) Standards will provide detailed guidance to ensure buildings are accessible to all members of the community. The Disability Standards are intended to act as a codification of requirements under the DDA.

In conjunction with developing these new Premises Standards, the Australian Building Codes Board has also revised the Building Code of Australia (BCA). The changes will align building regulation with Federal disability discrimination laws and also provide certainty for building owners, operators, designers and certifiers in the provision of these requirements.

Access to Premises – Buildings

All new buildings will need to meet the Premises Standards, as will all “New Parts” of existing buildings which includes extended or modified parts of an existing building. “Affected Parts” will also require access – defined as the principal entry of an existing building that contains a new part, as well as the path of travel from the entry to the new part.

Implementation and Concessions

The DDA sets out specific areas in which it prohibits a person being discriminated against on the grounds of their disability. This includes access to or use of “any premises that the public, or a section of the public, is entitled or allowed to enter or use”.

The DDA definition of “premises” is very broad and includes:

• existing buildings, including heritage buildings • proposed or new buildings• car parks• open air sports venues• pathways, public gardens and parksThe new Premises Standards will apply to all new buildings and refurbishments requiring building certification. They apply to common areas of apartment blocks if they have dwellings available for short term rent. However, all other private residences are exempt.

The Premises Standards will be mandatory from 1 May 2011 – aligned with BCA 2011 amendments. This will allow time to establish processes for dealing with applications to vary the access requirements by means of modifications or alternative solutions.

Recognised as a very significant issue for all in the property and construction industry, the standard aims to make buildings as accessible as possible, while avoiding what the legislation describes as an unjustifiable hardship on building owners and occupiers. These new standards will impact existing and pre-purchase due diligence processes, where consideration must be made for changing space and amenities requirements which may result in the loss of net lettable area.

Premises Standards



A number of concessions have been made to reduce the cost of implementation:

• a lessee concession – a lessee’s work to a new part of the building will not see the “affected parts” requiring access

• a lift concession – an existing lift within a new or “affected part” that does not travel more than 12m will not require modifications for increased floor space

• a toilet concession – existing accessible sanitary facilities and compartments within a new or “affected part” of an existing building will not require modifications if they meet the superseded AS 1428.1 (2001)

Disability Standards (cont.)

Even though sole occupancy units within residential buildings are effectively exempt from the Disability (Access to Premises – Buildings) Standards, it is important to note that accessibility in Class 1 and 2 buildings is being regulated at a state and municipal level in many locations. Many Development Control Plans in NSW require ‘adaptable’ sole occupancy units to be provided (i.e. in accordance with AS 4299); SA and ACT building regulations require a proportion of ‘accessible’ sole occupancy units (i.e. in accordance with AS1428 parts 1 and 2), and Victoria is including a state-based revision to the BCA with a number of requirements for accessibility in all Class 1 and a proportion of Class 2 buildings.

Housing Initiatives

The Premises Standards will refine the provisions in the current BCA to ensure full compliance with the DDA. The main changes will include:

• Class 1b and Class 2 buildings offering short term accommodation are to be incorporated • AS 1428.1 (2009) will be the main referenced standard. Spatially this standard generally cites the ‘90th

percentile wheelchair footprint’ (that is a footprint which is intended to represent 90% of wheelchairs available) where previously the ‘80th percentile’ was used. In practical terms this means larger circulation spaces to doors, sanitary facilities, lifts, etc

• proportion of accessible sole-occupancy units to Class 1b, 3 and 9c buildings increased• swimming pools with perimeters greater than 40m to be accessible• accessible car parking must comply with AS 2890.6. This is a narrower space with the addition of a

shared space protected with a bollard at the roadway• proportion of wheelchair spaces to be included in auditoria is increased• stair platform lifts and vertical platform lifts are now referenced (i.e. AS 1735 parts 7, 8, 14, 15 and 16 lifts)• sanitary facilities for people with ambulant disabilities will be required in all banks of toilets (in addition to

an accessible sanitary facility)• accessible sanitary facilities to be provided on every storey, and where more than one bank of toilets is

provided, to not less than 50% of those banks• various building elements within public transport facilities have a timetable of achieving access (100%

by 2022) by complying with a mixture of AS 1428 part 1 and 2 and the superseded versions of parts 1 and 4

• furniture and fit-out remains outside the scope of the access to premises standard and would continue to be enforced via the complaint system under the DDA

Key Changes from the Current BCA


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In 2009, The Council of Australian Governments (COAG) agreed that a national scheme for reporting energy efficiency in the commercial office market was required. This will have significant ramifications for property owners. The Building Energy Efficiency Disclosure Bill was passed in June 2010, enforcing Commercial Building Disclosure which began on 1 November 2010. As part of a broader National Strategy on Energy Efficiency, COAG is also considering an expansion of the program to cover other building types (such as hotels, shopping centres and hospitals) from 2012.

The scheme aims to create a strong market-based incentive for owners to improve their properties with cost-effective energy efficient upgrades.

Building Energy Efficiency Disclosure Act 2010Commercial Building Disclosure

The first NABERS Office Energy base building star rating assessment can take time and building owners are strongly advised to be fully prepared for the requirements of this scheme. Building owners need to ensure that:

• sub-metering is correctly installed as per the requirements of the NABERS Office Energy reporting process

• current net lettable floor area surveys are undertaken based on the Property Council of Australia Method of Measurement for Lettable Area March 1997

Davis Langdon has in-house NABERS Assessors with the capacity to provide NABERS assessments and strategic advice to improve your building or tenancy, whilst also managing the cost implications. Early preparation and comprehensive advice is vital in order to reduce any future unexpected costs.

What should you do?

Vendors, landlords and sub-landlords of buildings or parts of a building that have office areas in excess of 2,000m2 are required to disclose the energy efficiency upon sale or lease of a whole building, tenancy or sub-lease space. During the transitional period from 1 November 2010 to 31 October 2011, the only requirement will be the disclosure of a valid NABERS Energy base or whole building rating.

From 1 November 2011, all prospective tenants or buyers must be provided with a Building Energy Efficiency Certificate (BEEC) which is valid for one year and includes:

• a NABERS Energy rating• an assessment of tenancy lighting in the area of the building that is being sold or leased• suggestions on how to improve the energy efficiency of the buildingThe NABERS Office Energy rating tool will be used across all states, however it excludes the use of Green Energy. The scheme is mandatory for corporations and the Crown, however, non-corporate entities can participate voluntarily and new buildings will receive a two-year grace period. Civil penalties of up to $110,000 for the first day and $11,000 for each subsequent day may be imposed by a Court for each breach of a disclosure obligation.

Components of the Scheme



Corporate Social Responsibility Commitment

Davis Langdon recognises its shared responsibility to make every effort to improve the sustainability of the environment and surrounding communities. This responsibility requires the organisation and employees to adjust the way we do business and go about our daily lives.

Our Sustainability Strategy outlines a staged approach to improving the environmental and social performance of our Australian and New Zealand offices. The strategy further outlines Sustainability Targets and a Communication Strategy to help increase employee awareness and engagement level.

Davis Langdon is a National Gold Corporate Donor of the Property Industry Foundation – the charity of choice for the property and construction industry. Through Davis Langdon’s Corporate Social Responsibility (CSR) Committee we have established a CSR agenda to develop a program providing meaningful environmental and social sustainability actions. We participate in a variety of charity initiatives and events including the support of a national charity of the year, organise employee volunteering events and promote environmentally responsible business practices. Davis Langdon further supports needy organisations through pro bono projects.

All Davis Langdon offices are committed to energy efficiency with several of our Australian offices proud CitySwitch signatories. CitySwitch Green Office works with tenants to achieve improved office energy efficiency and reduce greenhouse gas emissions associated with climate change.

Our Sydney office is also a signatory to the Department of Environment, Climate Change and Water NSW Sustainability Advantage program and has been recognised as a Bronze Partner for its sustainability initiatives. The Sustainability Advantage program is a business support service designed to help organisations better understand and manage sustainability.


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Karori Wildlife Sanctuary Visitors Centre, Wellington, New Zealand


Seven: Sustainability

Seven:

Sustainability

Sustainability 64

Sustainability Rating Tools 65

Capital Cost Impacts 67

Corporate Sustainability Reporting 68

eBook – The Road to 'Green Property' 69

Davis Langdon's Embodied Carbon Metric (ECM) 70

Cost of Utilities 72


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The last few years have seen momentous change as governments, economies and businesses gear up for a carbon constrained future.

The global economic downturn together with rising materials and energy costs has effectively forced investment decisions that pursue both greater value and solutions with reduced ongoing maintenance, waste, energy and water costs. There is also growing evidence that insurance companies now consider properties with these credentials in a more favourable light when calculating premiums.

Benefits for building owners, by adopting sustainability initiatives, include:

• potentially higher occupancy rates• higher future capital value• reduced risk of obsolescence• less need for refurbishment in the future• ability to command higher lease rates• higher demand from institutional investors• lower operating costs• mandatory for a growing number of tenants• lower tenant turnover• costs less to maintain and operateAs carbon trading and carbon related tax and energy price increases are rigorously debated, a carbon price is inevitable but yet to be understood with confidence. A growing public knowledge of the impacts of climate change is gathering momentum and this shift in public opinion will be a driving force of future policy.

A growing public knowledge of sustainable practices has changed the face of 'business as usual'Sustainability

New Zealand Emissions Trading Scheme

New Zealand is the first country outside of Europe to implement a nation-wide mandatory carbon pricing scheme – an accomplishment yet to be achieved by the US, Canada, Japan and Australia despite on-going debate. Although the New Zealand Emissions Trading Scheme will be phased in over time, 1 July 2010 marked a milestone day as power, industrial processes and transport fuels sectors began mandatory reporting and trading of emissions.

The following sectors will be phased in over time:

• 1 January 2008 – Forestry • 1 July 2010 – Stationary energy and industrial processes • 1 July 2010 – Liquid fossil fuels and transport• 1 January 2013 – Waste and all remaining sectors • 1 January 2015 – Agriculture


Seven: SustainabilitySustainability Rating Tools

Criteria BREE

AM

LEED

Gree

n Star

CASB

EE

IPD

Envir

onme

nt Co

de

Glob

al Gr

een

Ratin

g

Launch Date 1990 1998 2003 2004 2008 2008/09

Domain UK US Australia Japan Global Europe

Building Typologies Covered 14 10 9 Not Known 14+ Not Known

Planning No No No Yes No No

Design Yes Yes Yes Yes No Yes

Existing/Operation Yes Yes Yes Not Known Yes Yes

The uptake of green rating tools has increased globally, especially in the UK and the US where their use has become mandatory in many areas.

A common feature of the international, Australian Green Star and NABERS tools, is that they are strong on environmental issues, but largely silent on social and economic issues – all three required for ‘triple bottom line’ reporting.

Green Star

The growth of the Green Building Council Australia’s Green Star tool has also been strong, both in terms of certified projects (227 as of August 2010) and accredited professionals (6,118 as of August 2010). The Green Star tools currently available are:

• Green Star – Education v1 • Green Star – Healthcare v1 • Green Star – Industrial v1 • Green Star – Multi Unit Residential v1• Green Star – Office Design v3 • Green Star – Office As Built v3• Green Star – Office Interiors v1.1• Green Star – Retail Centre v1The Green Star PILOT and Draft rating tools currently available are:

• Green Star – Office Existing Building EXTENDED PILOT• Green Star – Convention Centre Design PILOT• Green Star – Communities – DRAFT FRAMEWORK• Green Star – Public Building PILOT• Green Star – Custom PILOT


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Likely Green Star Credits

Source: Green Building Council of Australia Technical Manual Green Star Office Design Version 3

1

4 Star

ManagementIndoor Environmental Quality

EnergyTransport

Water

MaterialsLand Use

andEcology

5 Star

6 Star

Green Star Accredited ProfessionalCommissioning Clauses

Building TuningIndependent Commissioning Report

Building Users' GuideEnvironmental Management

Waste ManagementVentilation Rates

Air Change EffectivenessCarbon Dioxide Monitoring and Control

DaylightDaylight Glare Control

High Frequency BallastsElectric Lighting Levels

External ViewsThermal Comfort

Individual Comfort Control

Internal Noise LevelsHazardous Materials

Volatile Organic CompoundsFormaldehyde Minimisation

Mould PreventionTenant Exhaust Riser

Greenhouse Gas EmissionsEnergy Sub-metering

Lighting Power DensityLighting Zoning

Peak Energy Demand ReductionProvision of Car ParkingFuel-Efficient Transport

Cyclist FacilitiesCommuting Mass Transport

Occupant Amenity WaterWater Meters

Landscape IrrigationHeat Rejection Water

Fire System Water ConsumptionRecycling Waste Storage

Building ReuseReused Materials

Shell and Core or Integrated FitoutConcrete

SteelPVC Minimisation

Sustainable TimberDesign for Disassembly

DematerialisationTopsoil

Reuse of LandReclaimed Contaminated Land

Change of Ecology ValueRefrigerant ODPRefrigerant GWPRefrigerant Leaks

Discharge of SewerWatercourse Pollution

LegionellaLight Pollution

Innovative Strategies and TechnologiesInsulant ODP

Exceeding Green Star BenchmarksEnvironmental Design Initiatives

2 3 4 5

128 20

6 7 8 9

EmissionsInnovation

Credits Available


Seven: SustainabilityCapital Cost Impacts

Green design strategies have become ‘the norm’ for higher quality buildings in Australia, especially for office buildings as a result of the Property Council of Australia’s Guide to Office Building Quality requiring buildings to meet a minimum of 4 Star Green Star and 4.5 Star NABERS rating. With this change, the perception of ‘extra’ cost has diminished.

NABERS

The NABERS suite of assessment tools includes existing offices, homes, retail and hotels. With over 80% of Australia’s commercial office stock over 10 years of age, the importance of a tool to benchmark operational performance is imperative.

NABERS is a performance-based rating system for the built environment that measures an existing building’s overall operational performance from an environmental viewpoint. The scheme allows building owners and tenants to benchmark their greenhouse performance by measuring the environmental impact of the management and operation of the building and/or tenancy. The system provides a simple rating as an indication of how well these environmental impacts are being managed. The ratings range from 1 (low) to 5 (high).

The introduction of mandatory Commercial Building Disclosure requires NABERS assessments as the only method to measure building performance. Further details can be found in Chapter Six.

NABERS tools currently available for use or under development are listed below:Offices

• NABERS Energy• NABERS Water• NABERS Waste• NABERS Indoor Environment• NABERS for Data Centres – Under development• NABERS Commuter Transport – Under development Homes, Retail and Hotels

• NABERS Energy• NABERS Water

Green Star Capital Cost Impacts

-10%

-5%

0%

5%

10%

15%

Office Design & As Built Office Interiors

4 StarBusiness As Usual 5 Star 6 Star

Healthcare Multi Unit Residential Retail



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Corporate Sustainability Reporting

Since 2006, the Australian Institute of Company Directors has encouraged companies to become engaged in Corporate Social Responsibility (CSR) practices relevant to their operations and to communicate with shareholders and stakeholders about their contributions to improved sustainability performance.

Triple bottom line reporting, corporate social responsibility reporting and sustainability reporting are terms synonymously used to express the practice of measuring, disclosing and being accountable to internal and external stakeholders for economic, environmental and social impacts.

In an effort to encourage further corporate responsibility reporting by Australian property companies, the Property Council of Australia has put together a guide to assist companies. Many property companies, small and large, are yet to take on the challenge of providing greater transparency in their social, environmental and economic practices. This guide will help property companies report their corporate responsibility performance. A voluntary template is provided for corporate responsibility reporting that can be customised to the needs of individual corporations.

Corporate Responsibility Reporting Guide

The Global Reporting Initiative (GRI) is a network-based organisation behind the world’s most commonly used sustainability reporting framework. The GRI Reporting Framework includes principles and indicators to measure and report on economic, environmental and social performance. Using the framework ensures the highest degree of technical quality, credibility, and relevance. It further gives the opportunity to benchmark organisational performance, demonstrate commitment to sustainable development and compare performance measures over time, including:

• economic performance• environmental performance indicators• labour practices and decent work performance• human rights performance• society performance• product responsibility performance

The basis of the framework is the sustainability reporting guidelines. Other components include the sector supplements with industry sector specific indicators and the national annexes with country specific information.

In accordance with the GRI Framework, users should declare the level to which they have applied the GRI Reporting Framework. Three ‘Application Levels’, A, B and C are available, reflecting the coverage of disclosure. In addition to the mandatory self declaration, report makers can choose to have a third party provide an opinion on the self declaration and/or request the GRI to check the self-declaration. A+, B+ and C+ indicate the use of external assurance for the report.

The Global Reporting Initiative



At the Green Cities 2010 conference, Davis Langdon launched the first edition of our eBook, The Road to ‘Green Property’, a guide to the many different and diverse aspects of achieving a greener built environment.

The eBook is updated regularly and remains a leading source for environmental topics in the property and construction industry.

It features valuable information on topics such as:

• Green Star Rating Tools• Emerging Issues• Embodied Carbon Metric (ECM)• Government Incentives and Regulations• Green Leases• Green Jobs• Building Code of Australia Changes• Retrofitting Office Buildings• Water Savings from Green Star• Energy Performance Contracting• Environmentally Sustainable Development Technologies• Triple Bottom Line Reporting• Davis Langdon’s CSR Commitment

Visit Davis Langdon’s sustainability sector site at www.davislangdon.com.au/ANZ/Sectors/Sustainability

Make sure you keep the link to our publication – it will be updated often as new information becomes available.

eBook – The Road to ‘Green Property’


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Studies indicate that the embodied energy in buildings may be equivalent to 11-23 years worth of operational energy, depending on the complexity of the building.

The World Resources Institute has estimated the world total greenhouse gas emissions in 2005 at 44,153 MtCO2-e. The operation of buildings equates to 16.5% of these emissions, 10.2% for residential and 6.3% for commercial buildings.

Davis Langdon believes operational as well as embodied greenhouse gas emissions in new projects will continue to be one of the biggest challenges facing the property and construction industry. In order to help clients make informed design decisions, around financial costs, operational efficiencies, Green Star compliance, but also around the greenhouse gas legacy of buildings, we have developed the Embodied Carbon Metric (ECM).

The ECM calculates the embodied greenhouse gas emissions of proposed developments, assisting with material selection in the design process as well as the calculation of the overall carbon footprint of the development.

Calculations are based on Australia-specific emission factors derived using a life cycle assessment approach including emissions from the extraction of raw materials, primary energy sources, manufacture, transport and on-site construction.

The ECM will help avoid higher than desired carbon content and additional costs by enabling selection of construction materials in the design process that reduce a development’s overall carbon footprint. Direct and indirect benefits include:

• the opportunity for environmental benefits through the enabling of material selection based on embodied carbon intensity

• the opportunity to design a development with lower embodied carbon enabling a clear path to achieve carbon neutrality

• improved brand reputation• improved tenant and employee interest, engagement and awareness• long term tenant and employee retentionIn the same way that operating and maintenance costs need detailed consideration, it is important that the day-one carbon impact of a project is understood and mitigated. A low-energy building may have a wind turbine, photovoltaics and insulation, but unless there is an accurate assessment of how much carbon has been emitted in construction, it is impossible to effectively calculate the building’s overall carbon impact.

The ECM enables this measurement, allowing developers and design consultants to use optimal materials and practices to achieve a low carbon outcome.

Davis Langdon’s Embodied Carbon Metric (ECM)


Seven: SustainabilityECM (cont.)

The ECM was used in 2009-2010 in the design stage for a development in NSW. A number of scenarios and design options were modelled including a current industry typical practice scenario and an improved performance scenario.

The current industry typical practice scenario resulted in an overall carbon footprint of close to 8,000 tonnes of CO2-e. This is the equivalent of driving a passenger car 715 laps around the equator, the equivalent annual electricity use of 1,250 Australian households or 1,800 Olympic-sized swimming pools filled with carbon dioxide.

By introducing a number of sustainability initiatives, for example cement replacement in concrete using ground granulated blast furnace slag and the lowering of concrete strength where applicable, an overall reduction in embodied greenhouse gas emissions of over 20% was achievable without significant cost implications.

ECM Contribution to Carbon Footprint

Material Input by Weight

6.0%

37.0%

1.0%27.0%

1.0%

24.0%

5.0%

GlassTilesAluminiumSteel

Gravel and SandOther

Concrete

Contribution to Carbon Footprint

2.0%

88.0%

4.0%4.0%

1.0% 0.4%1.0%

GlassTilesAluminiumSteel

Gravel and SandOther

Concrete

Material Input by Weight


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Cost of Utilities

Electricity and Gas

As we move forward, any energy cost increase will start to have a significant impact on alternative energy solutions. The rush is already on to find a sustainable large scale alternative to coal. Globally, alternative power options are being utilised to varying degrees, including wind, hydrogen, solar, clean coal, nuclear and even geothermal power.

The following charts detail the cost and escalation rates forecast for the next 15 years. Although these general rates of escalation are based on the introduction of the CPRS in 2011 – as originally planned by the Federal Government – Davis Langdon estimates that the forecasts remain relevant with the exception of the spike in 2011. Electricity generators will continue to future proof their assets by investing in carbon mitigation research and development (at a cost to be passed onto consumers).

There is an awareness that, whilst leadership changes have created uncertainty about whether the CPRS will remain shelved until 2015, some form of emissions trading or tax will occur within this decade.

Water

Irrespective of the chosen solution to Australia’s growing water crisis, the fact remains that water is likely to get more expensive. A waterless future ultimately means: desalination, recycled water, third pipes systems, grey water, black water, water tanks and associated cost increases.

The following charts detail the cost and escalation rates forecast for the next 15 years. Drought conditions around Australia have placed many regions under water restrictions which has changed the consumption habits of Australians. Consequently, a drop in demand has reduced profitability for water retailers which has ultimately lead to higher prices to cover operational costs. In an effort to combat diminishing water supplies, state governments are planning new infrastructure to meet demand, resulting in a higher than trend expectation for water price escalation.



Retail Electricity Price Forecast

Retail Water Price Forecast

Retail Gas Price Forecast

0

2

4

6

8

10

12

14

16

18

0%

2%

4%

6%

8%

10%

12%

14%

Yearly Escalation Rate (RHS) Retail Gas Price (LHS)

2010 2012 2013 2014 2015 2016 2017 2018 2020 2021 2022 2023 2024 202520192011

$/GJ

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

0%

2%

4%

6%

8%

10%

12%

14%

Yearly Escalation Rate (RHS) Retail Water Price (LHS)

2010 2012 2013 2014 2015 2016 2017 2018 2020 2021 2022 2023 2024 202520192011

$/kL

0

50

100

150

200Reduced Estimate Minus CPRS

Anticipated Carbon Price Impact

250

300

0%

10%

20%

30%

40%

50%

Yearly Escalation Rate (RHS) Retail Electricity Price (LHS)

2010 2012 2013 2014 2015 2016 2017 2018 2020 2021 2022 2023 2024 202520192011

$/MW

h

Source: Federal Treasury, Davis Langdon Research

Source: CSIRO


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Queensland Academy of Creative Industries, Brisbane, Queensland


Eight: Project D

elivery, Strategies and Business A

ssurance

Eight:

Project Delivery, Strategies and

Business Assurance

Life Cycle Cost Analysis 76

Engineering Services 77

Value Management Facilitation 78

Specifications 79

Design Management 81

Building Controls – Accreditation Framework 82

Building Controls Legislation 84

Verification of Deliverables 87

Construction Industry Contracts 87

Certification Services 88

DEGW 90


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Life Cycle Cost Analysis

The Life Cycle Cost (LCC) assessment compares whole life costs of a building or any of its component parts. Clients can establish the best value for money solution to meet their needs. LCC can also provide useful comparisons with similar property types and benchmarking information for future acquisitions/developments.

A good example of the importance of operational phase costs is hospitals where typically operating costs over 2.4 years are approximately equal to the acquisition/construction phase costs.

An additional tool used in the evaluation process is Net Present Value (NPV). This is a technique that calculates the discounted present day cost of all expenses associated with the asset during the evaluation period.

LCC and NPV analyses are of interest to many parties including:

• developers• tenants• property portfolio owners and operators• government or government-owned and occupied buildings• owners of privately owned and occupied buildings• Public Private Partnership (PPP) proponents• PPP facilities management providers • facilities management providersLife cycle cost analyses will become increasingly important in the new age of reduced emissions, greater emphasis on sustainability and greater consciousness of the need to further reduce operational costs.

A$

Year

0

50,000

100,000

150,000

200,000

250,000

1 2 3 4 5 6 7 8

Option 1 Option 2

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Land Acquisition, Planning and Design Phase

Construction Phase

Payback period for Option 2 – approximately 10 years

Operational Phase


Eight: Project D


ssuranceEngineering Services

Engineering services typically represent between 40-50% of a project’s building cost as new and emerging technologies impact in the quest for sustainable buildings.

The focus on engineering services (mechanical, electrical, communications, fire and hydraulics) within projects and the provision of the most appropriate design solution, not only in capital expenditure but also in recurrent operational cost terms, has never been of greater importance.

With the primary goal of obtaining the best value outcomes for the client, the experienced, impartial view of specialist engineering services cost advice (independent from the services engineer undertaking the design) can be invaluable on many projects.

To assist in this process, we have identified the following key tips for projects striving for best value engineering services solutions:

• establish early in the process what the client’s goals are for engineering services and agree what constitutes best value

• seek active participation in any value management process from suitably qualified independent engineering services cost planners – a fresh set of eyes can be particularly helpful, especially when critical decisions on technical matters may be required

• challenge the basis of decisions, plant sizing etc – ensure you’re not paying for something that will never be utilised

• set energy targets• undertake comprehensive life cycle analysis – ensure the investment being made is the right one for the

life of the building• listen to the client’s resident engineer (if one exists) as they have a depth of project knowledge that will be

invaluable to the team • coordinate, coordinate, coordinate – ensure the architectural/structural and engineering services

documents are fully and comprehensively coordinated• ensure detailed monitoring and assessment of engineering services costs throughout the project,

particularly post-contract variations• undertake comprehensive commissioning of the plant and equipment – fine tune your buildings to make

sure they work as efficiently and cost effectively as possible• ensure appropriate maintenance is undertaken at regular intervals• undertake regular energy benchmarking

50-60%

40-50%

Building WorksEngineering Services

Overlap Between Building/Engineering

10%


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Value Management Facilitation

Definition and Purpose Value Management Facilitation involves a collaborative process between all stakeholders to achieve the best project outcomes. One of the key principles in Value Management Facilitation is that value and value for money are two distinct concepts. The value of an item or service is the benefit that its useful purpose provides, relative to its importance to that organisation.

The term Value Management emerged with broader management applications, while still focusing on the lowest cost to perform required functions and value for money from whole systems.

Principles and Practices of Value Management Facilitation Value Management Facilitation is a strategy designed to determine what the project values are, what they mean and whether they are sustainable to achieve best value. A primary objective is achieving the maximum performance at the lowest possible cost. This involves facilitation of collaborative workshops comprising of multiple disciplines to achieve the following:

Benefits of Value Management:

• improve the likelihood of successful project outcomes• implement a clearly defined stakeholder framework• extend stakeholder interests• create a shared vision and purpose• improve stakeholder relationships• create project efficiencies• increase knowledge and understanding• achieve realistic/tangible targets • realise value benefits

Build shared knowledge and understanding• distribute an agreed pre-workshop plan• bring together a diverse and multi disciplined key

stakeholder group

Create ideas• create a non-threatening, learning and collaborative

environment• reach agreement with the group on the what the

primary purpose of the entity is

Evaluate the ideas• collectively develop a value statement describing useful

purposes, benefits & important characteristics• identify and agree on the criteria that will be used to

measure success

Develop proposals• develop proposals that represent those values

Decisions and recommendations• make recommendations and prepare action plans• implement actions and report

‹‹

‹

‹


Eight: Project D


ssuranceSpecifications

Written specifications are but one document in a morass of information used by designers, contractors and owners for procuring projects. On small scale projects they often don’t exist with specification information conveyed on the drawings.

Specifications should be seen as the transmission of knowledge from one party to another. The golden rule is not to produce unnecessary volumes; the larger the project the greater the need for clear, concise, coordinated information flow between the parties involved.

It is far cheaper for the client and the architect to change a line on a drawing or a clause in a specification than to alter a manufactured product after delivery or installation. The best specifications are the most accurate ones and rushed tender documents inevitably lead to additional costs, delays and disputes.

Specifications should be planned well in advance, reflect the architect’s requirements and be properly integrated with other tender documents – all of which takes time to resolve.

Specifications are a key contract document, contractually more important than the drawings. Done properly, the specification should:

Specifications define quality and responsibility. Therefore, they need to be sufficiently flexible to reflect the various forms of procurement and contract used in our industry today.

The Importance of an ‘Onerous Task’

REFLECT• design intent• form of contract and

procurement• program requirements• regulatory standards

ESTABLISH• quality of construction

• clarity in drawings• performance benchmarks

• procedures and responsibilities• compliance checks• links to other contract

documentsSUPPORT

• clients from exposure claims and cost increases

• architects design and interestsPROTECT

SpecificationS


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Australia does not have an independently recognised nation-wide trade category system and therefore the options available are either to subscribe to a number of off-the-shelf specification products or to develop a tailored system. Many architects have opted to produce their own systems using such products as a starting point. Whichever system is selected, it is essential that consistency is maintained and that database information is kept up to date by the purchase of regular updates or the use of dedicated specification production teams.

Specification production should start as early in the design process as possible and be developed continuously, alongside the drawings. The biggest mistake a specification consultant and architect can make is to leave it until the last minute, take a copy of a document written for a similar project and issue it under the new project title.

By developing specifications throughout the design process, the designer has the best chance of achieving a clear and unambiguous document.

Today and Beyond

Through strategic global alliances Davis Langdon aims to:

• provide training and assist educational institutions to establish specification writing as a core subject

• provide a forum to discuss specification related issues, encouraging clients, designers, suppliers and contractors to understand each others’ issues and aspirations

• develop the full potential of online and other technologies, including Building Information Modelling as a means of accessing and producing project specifications

• publish specifications linked to product libraries

• develop, with the support of the various institutions, an independent common arrangement of works sectors (AUSCAWS) for the Australian construction industry

Specifications are a vital document. They are used at every stage of the project but become even more important if a dispute arises. In such circumstances, specifications must contain clear and unambiguous statements that resolve the argument. As such, the specification document should be referred to closely throughout the construction process.

Proceed without it at your peril!

Format and Content

Content considerations • how will materials and products noted on the drawings be cross-referenced to the specification?

• what will the specification be used for?• does the architect’s appointment contain stipulations to be reflected in the specifications?• what are the requirements for submittals such as samples, prototypes, benchmarks,

testing etc?• how are these submittals documented and agreed to ensure the best quality of products?

Specifications (cont.)


Eight: Project D


ssurance

Davis Langdon’s Specification Consultancy services has naturally progressed to a service of Design Management (DM), which provides the next level of certainty. DM is a specialist service for the management and monitoring of design teams. Our approach is based on a thorough understanding of the design process through our experiences of working as part of design teams throughout the world.

The modern design process requires a new type of thinking where innovative design is backed up by clear and flexible design management procedures. We understand the challenges faced by architects, design teams and clients, as well as the level of support required to provide the necessary solutions.

Our service can vary from being a daily ‘hands-on’ supporting role to an abridged design health check service. It can be applied to any design project, in any location worldwide.

Davis Langdon’s DM service:

• frees up the design team to concentrate solely on design tasks • ensures timely key decisions are made to enable design progress• provides outside help with a fresh outlook, sympathetic to the design team’s needs• gives reassurance that issues vital to the success of the design are being managed• includes the ability to draw upon a wide range of construction consultancy services and experience

within Davis Langdon when requiredProper management techniques achieve milestones and exceed expectations without stifling design creativity. DM processes benefit the client and design team through:

• maximised design quality• maximised cost savings• minimised time delays• minimised design risk• aiding decision makingDavis Langdon DM employs a number of useful tools to manage the fluid nature of design. Visual tools are more commonly used to reflect the design process including the example below of a ‘design web’ – a graphical aid to represent the design team's program and progress.

Design Management

Design Web – Progress Summary

Lighting

Toilets

Stairs

BuildingSections

Acoustics

FireEngineering

Building Core

Floor Plans

ActualTarget40% 60% 80% 100%0%20%


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New South WalesCategory Work Scope Functions

Grade A1 Building Surveyor

• Unrestricted • Assess and issue relevant Construction Certification within Grade parameters

• Undertake inspections during construction• Assess and issue Occupation Certificates within Grade

parameters


• Restricted to Class 1 and 10 buildings• Class 2 to 9 with a floor area ≤ 2,000m2 or a

rise in storeys not more than 3• Buildings of not more than 4 storeys

comprising 1 storey of Class 7 or not more than 3 storeys of Class 2

• Assess and issue relevant Construction Certification within Grade parameters


parameters


• Restricted to Class 1 and 10 buildings• Class 2 to 9 with a floor area ≤ 500m2 and a

maximum rise of 2 storeys

• Assess and issue relevant Construction Certification within Grade parameters


parameters

Grade A3 Building Inspector

• Restricted to Class 1 and Class 10 buildings• Class 2 to 9 with a floor area ≤ 500m2 and a

maximum rise of 2 storeys

• Undertake inspections except for the Final Inspection

QueenslandCategory Work Scope Functions

Building Surveyor • Unrestricted • Assess documentation for the issue of a Development Permit for Building Work

• Carry out inspections of building work during construction• Issue Final Inspection Certificates and Certificate of

Classification

Assistant Building Surveyor

• Restricted to all classes of building having a rise in storeys of not more than 3 and a total floor area ≤ 2,000m2 without supervision

• Assess documentation for the issue of a Development Permit for Building Work

• Carry out inspections of building work during construction. Issue Final Inspection Certificates and Certificate of Classification

• Under the supervision of a building surveyor help in assessing and inspecting all classes of buildings and structures

• Under supervision assist a building surveyor in inspecting other buildings and structures

Building Surveying Technician

• Restricted to Class 1 and 10 buildings if the technician has more than 1 year experience

• Wtih the parameters outlined, assist a building surveyor

Building Controls – Accreditation Framework


Eight: Project D


ssurance

VictoriaCategory Work Scope FunctionsBuilding Surveyor Unlimited • Unrestricted • Assess documentation for BCA compliance

• Issue of Building Permit• Carry out Mandatory Inspection• Issue of Occupancy Certificate

Building Surveyor Limited • Restricted scope of work – able to certify buildings up to three storeys with a maximum floor area of 2,000m2

Building Inspector Unlimited • Unrestricted • Undertake inspections during construction

Building Inspector Limited • Restricted to certain classes of building determined by the Building Practitioners Board

• Undertake inspections on certain classes of buildings during construction

South AustraliaCategory Work Scope Functions

Building Surveyor • Unrestricted • Assess documentation• Issue of Building Rules Consent• Inspection of Buildings• Issue of Certificate of Occupancy

Assistant Building Surveyor • Restricted to all classes of building having a rise of storeys of not more than 3 and a total floor area not exceeding 2,000m2

• Assess documentation• Issue of Building Rules Consent• Inspection of Buildings• Issue of Certificate of Occupancy

Building Surveying Technician • Restricted Class 2–9 buildings having a rise of storeys of not more than 1 and a total floor area not exceeding 500m2

• Class 1a or 10 buildings that do not have a rise in storeys exceeding 2

• Assess documentation• Issue of Building Rules Consent• Inspection of Buildings• Issue of Certificate of Occupancy

Northern TerritoryCategory Work Scope Functions

Building Surveyor • Unrestricted • Assess documentation for BCA Compliance• Issue of Building Permit• Inspection of Buildings• Issue of Occupancy Permit

Building Surveyor • Restricted (Class 1 and 10 buildings only) • Assess documentation for BCA Compliance• Issue of Building Permit• Inspection of Buildings• Issue of Occupancy Permit

Building Controls – Accreditation Framework (cont.)

Western AustraliaCategory Work Scope Functions

The framework became effective from 2009, incorporating a transitional period through to 2013 to allow for a temporary accreditation process to recognise prior learning and industry experience.

Level 1 Building Surveyor • Unrestricted • Able to certify and provide advice for any building

Level 2 Building Surveyor • Restricted • Able to certify and provide advice for buildings not exceeding 2,000m2 and 3 storeys in height


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New South Wales Building Legislation Changes

Changes to the certification procedures for minor building works (existing non-residential) mean some development applications in New South Wales are no longer needed. The State Environmental Planning Policy (SEPP) – Exempt and Complying Development Codes – applies in all areas, except Warringah Council, Bathurst Council, Western Sydney Parklands and the Kosciuszko National Park area.

This policy provides one set of prescriptive development standards for works.

Types of development may include:

Internal fit out works • bulky goods retail• commercial premises (retail, office and business premises)• light industry premises• warehouse or distribution centre

Change of use of premises for • bulky goods tenancy to another bulky goods premises• a type of commercial premises to another type of commercial premises• light industry to another light industry• warehouse or distribution centre to another type of warehouse or distribution centre• light industry to warehouse or distribution centre (or vice versa)• light industry to an ancillary office• warehouse or distribution to an ancillary office

Mechanical Ventilation systems

Shop front and awning alterations

Skylights and roof windows (unless site is in a bushfire prone area)

• no increase in GFA• no reduction in glazed area• no reduction in transparency of shopfront

Building Code of Australia Compliance must be achieved for the works to be undertaken as a complying development. If fire safety engineering or any other performance-based assessment is required to demonstrate BCA compliance, then a Development Application may be required.

Even if the existing building has fire engineering as part of the base building parameters and the works proposed do not introduce any new fire engineering assessments, the building will need a check to ensure it is still compliant with the base building fire engineering.

Development consent is required for heritage listed lots or buildings, environmentally sensitive land and where the previous use of the building/tenancy has not been the subject of an approval for the use. Also, works to existing buildings require a pre-certificate inspection.

Essential Fire Safety Measures The Environmental Planning and Assessment Regulation 2000 requires the owner of a building to issue an Annual Fire Safety Statement (AFSS) stating that each of the fire safety measures listed for the building are capable of performing to a standard of performance, no less than that which they were originally designed.

It is the owner’s responsibility to carry out inspections ensuring that these essential fire safety measures comply with the relevant design standard(s). Fines for late, or non-issuing, of an AFSS range from $500 for each week overdue, up to a total of $110,000. Inspections of these measures must be carried out within a three month period of the AFSS being issued and copies must be prominently displayed within the building.

Building Controls Legislation


Eight: Project D


ssurance

Swimming Pool Fencing In September 2009 the Queensland Government approved a two stage swimming pool safety improvement strategy.

Stage 1 for new pools took effect on 1 December 2009. It includes:

• the latest swimming pool fencing standards (including temporary fencing)• mandatory final inspections• the latest cardiopulmonary resuscitation (CPR) signage standards

Stage 2 took effect on 1 December 2010. It includes:

• the consolidation of standards into one pool safety standard (new and existing pools must comply with the standard within five years unless sold or leased first)

• a five-year phase out of child-resistant doors (self-closing and self-latching) used as pool barriers for existing pools, unless sold or leased first

• a sale and lease compliance system requiring pool safety certificates • wider application of state laws to include indoor and hotel pools• all swimming pools to be included on the state's pool register • fencing for all portable pools and spas deeper than 300mm • mandatory inspections of pools by local government for immersion incidents

Sustainability Declarations A sustainability declaration is a compulsory checklist that enables a seller to highlight desirable sustainability features during the marketing of a home for sale. The features cover energy and water efficiency, access and safety.

From 2010, sellers in Queensland are required to prepare a sustainability declaration before a home can be marketed for sale either privately or through an agent. It aims to:

• increase seller and buyer awareness of sustainability features and their potential value• promote dollar savings from improved energy and water efficienciesWestern Australia Building Legislation Changes

The Western Australian Government is planning to implement the new Building Act in 2011. This much needed building reform will create a more responsive and modern building regulatory system.

Of particular note is the introduction of a private certification process as part of the overall Building Licence issuing function. This will relieve the ever increasing pressure on local government authorities to meet the competitive expectations of the commercial property sector.

Developers and project teams will be able to engage a qualified and accredited building surveyor to act as a private certifier to certify the project’s design compliance. Local government authorities will be able to rely on this certificate to issue the building permit without having to undertake a comprehensive assessment. It is anticipated that a building permit should be issued without delay if a private certifier has certified the design of a commercial project.

The new Building Act will also introduce mandatory inspection requirements for the construction and occupation phases of the project program.

Queensland Building Legislation Changes

Building Controls Legislation (cont.)


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Building Controls Legislation (cont.)

Maintaining Essential Safety Measures in Commercial Buildings in VictoriaWhen the construction of a commercial building is complete, it is now a legislative requirement that the building owner is responsible for the upkeep and maintenance of fire and life safety measures of that building. The maintenance of essential safety measures will ensure that the safety measures (mainly dealing with fire situations within the building) remain at the required operational level throughout the life of the building.

If the building was built before 1 July 1994, the owner is required to maintain the existing essential safety measures installed in the building to a working condition that enables them to fulfil their purpose, and the expectations of the council and Fire Brigade Authorities. It is the owners responsibility to engage suitably qualified people to establish a schedule of existing essential safety measures required to be maintained in the building, and the level and frequency of maintenance.

The essential safety measures determination was required to be prepared by 13 June 2009, with subsequent reports to be carried out before 13 June every year, in accordance with Part 12, Building Regulations 2006.

Building Controls for Bushfire SafetyVictorian Building Regulations were amended from 11 March 2009 to refer to the newly published Australia Standard, AS 3959–2009 Construction of Buildings in Bushfire-Prone Areas (the Standard). The Standard sets out construction requirements for a building, determined according to the highest Bushfire Attack Level (BAL) of the site.

The amendment to the regulations adjusts the relevant performance requirements in the BCA to remove reference to ‘designated bushfire-prone area’ and include Class 10a buildings associated with a Class 1, 2 or 3 building. As a result of the amendment, all of these buildings are now subject to the site assessment provisions required by the Standard, although many will be assessed as BAL-LOW and will not be required to comply with additional construction requirements.

The BAL for which specific construction requirements are set out in the Standard are:

• BAL-12.5• BAL-19• BAL-29• BAL-40• BAL-FZThese categories are allocated after a site assessment by an architect or builder that considers: construction type, radiant heat performance, proximity to outbuildings, slope of the land, vegetation type and fire shielding. The building surveyor then checks that the appropriate Standard is met through to completion.

As part of a streamlining of planning processes after the 2009 bushfires, the government removed the need for a planning permit for activities related to rebuilding, including the clean-up, repairs and construction of temporary accommodation. Houses that are being replaced on the same site in a Wildfire Management Overlay area will not need a planning permit, while a permit will still be required if there is an overlay relating to heritage, landslip or flooding.

In addition to these measures, in 2010 the Australian Building Codes Board announced a Performance Standard for the design and construction of private bushfire shelters. These have been released for public comment and will be included in the BCA 2011.

Victorian Building Legislation Changes

Source: Building Commission


Eight: Project D


ssuranceVerification of Deliverables

A key concern for government and financial stakeholders in major projects is the verification that their specified requirements have been met, commercially and technically.

The application of quality systems during design and construction ensures that the scope, quality and function targets of the project are met. The surveillance and auditing of the quality system act to safeguard key stakeholders, and the step by step process provides firm evidence of the extent to which project objectives are met.

Furthermore, the effective implementation of ISO 9000 quality assurance standards by all parties in the development process assures compliance and workmanship in the first instance, as well as evidence of inspections and defects.

The role of the independent reviewer is to verify that contractors’ and consultants’ obligations are progressively being met, ensure that an adequate quality system is adopted for the project and to audit its application.

Objective and professionally independent reviews require continuous and open communications with project parties. The aim is to obtain ongoing knowledge and awareness which will generate identification of critical issues of non-compliance or safety concerns.

Independent Reviewing at Various Levels:

• independent review of project objectives• independent review of design• independent review of construction • inspection surveillance• auditing of management plans• monitoring project time and value

Code Name Author

ABIC MW-1 Major Works Contract (2003) RAIA, MBA

ABIC BW-1 Basic Works Contract (2002) RAIA, MBA

ABIC SW-1 Simple Works Contract (2002) RAIA, MBA

ABIC EW-1 Early Works Contract (2003) RAIA, MBA

AS 4000 General Conditions of Contract (1997) (Supersedes AS 2124) Standards Australia

AS 4901 Subcontract Conditions (1998) (Supersedes AS 2545) Standards Australia

AS 4902 General Conditions of Contract – ‘Design & Construct’ (2000) (Supersedes AS 4300) Standards Australia

AS 4903 General Conditions of Subcontract – ‘Design & Construct’ (2000) Standards Australia

AS 4905 Minor Works Contract Conditions (Superintendent administered) (2002) Standards Australia

AS 4906 Minor Works Contract Conditions (Principal administered) (2002) Standards Australia

AS 4915 Project Management – General Conditions Standards Australia

AS 4916 Construction Management – General Conditions Standards Australia

AS 4917 Construction Management Trade Contract – General Conditions (2003) Standards Australia

Construction Industry Contracts


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Third Party Certification

Certification Services

Competitive market forces are increasing the demand for organisations to implement management systems that operate in accordance with recognised Standards. Certification is the formal recognition that a company has documented and implemented a management system that meets the requirements of a standard and can be considered as a means of achieving best practice in business.

Certification bodies within Australia must be accredited by organisations such as the Joint Accreditation System of Australia and New Zealand (JAS-ANZ). JAS-ANZ ensures complete independence and impartiality as certification bodies are required to keep client details in the strictest confidence. JAS-ANZ publish an international register of certified companies across various standards, which provides stakeholders and the community with confidence in your organisations opperational performance. These ‘best practice’ standards include:

• ISO 9001:2008 (Quality Management Systems)• ISO 14001:2004 (Environmental Management Systems)• AS/NZS 4801:2001 (Occupational Health & Safety Systems) • SafetyMAP (Occupational Health & Safety Systems)• OHSAS 18001:2007 (Occupational Health & Safety Systems) • CCF (Civil Construction Management Code)• NAT (National Audit Tool)• Environmental Product Standards

Why is Certification Important?

Certification of your business management system through independent verification has the primary benefits of:

CompetitiveAdvantage

RecognisedWorldwide

Confirmationof

Best Practice

Less DuplicationImproves

Profitability

EffectiveRisk

Management

EnhancedCorporate Knowledge

Commitmentto

Stakeholders

Certification


Eight: Project D


ssuranceThe Certification Process

Gaining an understanding of your business, providing you with all the information about certification, the processes and what you need to do. You will then be provided with a fee proposal detailing fees and costs.

After reviewing the proposal, an approved signatory should complete the formal contract, accepting the certification process.

A Pre-Assessment of your organisation is undertaken to ensure you are ready for the certification assessment including site processes, OHS hazards, risk and environmental impacts.

1.Initial Contact 2.Application

3.Certification Pre-AssessmentReview of management system to check ‘what you say you do meets with the standard’. You will receive a copy of the business diagnostic report which will outline any non-conformances.

4.System Review

Determines if ‘you are doing what you say you do’. Your Lead Assessor will present the findings, and if there are no major non-conformances, certification will be recommended. Following approval by an independent committee, you will receive your Certification of Conformity and be listed by JAS-ANZ.

5.Conformity Assessment 6.Surveillance Assessment

7.Re-Assessment

‹

‹

‹

‹

‹

‹

Carried out at pre-determined intervals in the same manner as the Certification Assessment. These are necessary to be assured that your system continues to comply with the Certification Standard.

Every three years a full Re-Assessment of the system as a whole needs to be completed. This confirms that the systems in their entirety are working well and that the links between processes are sound.

In addition to auditing management systems, JAS-ANZ also oversees the certification of products. Product certification is a means of demonstrating that a product, process, or service satisfies specified requirements. Products, once certified, may be endorsed with a quality mark or be eligible to display a certification mark. This enables greater assurance for materials used in the construction and wider industries.

Second party audits are becoming increasingly prevalent in the property and construction industry. These audits are focused on the specific requirements of a client, as opposed to a specific Standard. The compliance can be to a process or to a product, against any agreed specification. The purpose is to provide the client with objective evidence of compliance to a specification, as agreed between customer and supplier.

Second Party Auditing

Product Certification


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DEGW

DEGW is a specialist business consultancy owned by Davis Langdon, an AECOM company, that helps clients capitalise on the relationship between people and physical place to enhance organisational performance.

Supported by rigorous and structured evidence, and through an ability to really listen to the aspirations, strategic needs and practical commercial concerns of clients, DEGW develops insightful solutions to client challenges.DEGW Services

Research & Advisory DEGW services are driven by user research. A deep understanding of clients’ particular needs, such as workplace performance and utilisation, allows solutions to be tailored to meet immediate goals and long-term objectives. Our research methods, particularly understanding how user demands are changing, enables DEGW to provide the best possible advice:

Strategic Briefing Strategic briefing is at the core of DEGW’s enterprise. At the heart of this service is the notion that buildings and spaces operate on many levels; aesthetic and practical, public and private, and as objects with a lifespan, they will inevitably change and adapt. DEGW helps clients develop visions for the future and practical strategies that enable people, process and place to support these visions.

Design Strategy DEGW acts as the catalyst for conceiving new solutions. An enduring focus on research and strategic thinking as an essential first step leads to focused briefs that frame each design solution, and allow scenarios to be tested against client and user priorities.

Change Management DEGW’s change and communications service helps organisations minimise loss of productivity and business disruption during the workplace transition period. It also enables a more complete understanding of the business benefits and opportunities. These services support the journey of change for client organisations.

Research & Advisory

Desk research & literature reviews Ethnographic techniques Workplace performance surveysIndustry condition surveys Post-occupancy evaluationsSocial network analysis Time utilisation studies

Strategic Briefing

Envisaging use of buildings & spaces User requirementsDescribing optimal spaces Identifying strategic requirementsBusiness case development Measuring or calibrating success

Change Management

Communication & engagement Capability developmentFamiliarisation services Training & coachingProtocol development Transition training & support

Design Strategy

Design concepts & feasibility studies Research & benchmarkingDesign facilitation Building appraisalDesign management

Evaluation


Eight: Project D


ssuranceDEGW (cont.)

Client Sectors

Research Process for Workplaces

Commercial & Government Workplaces DEGW has delivered a vast array of projects on both a global and local scale, providing strategic briefing, design strategy, change management, research and advisory services for projects ranging from 50 person pilot studies to major 7,000 person headquarters accommodation.

Strategies for combining people and places to improve organisational performance

Learning Environments DEGW’s approach to higher education environments is founded upon research and consultation and the experience that comes from the exploration of innovation with leading institutions and thinkers around the world.

Key areas of focus in this sector include pedagogical innovation (particularly in the context of evolutional change in technology) and the evolving interrelationships of scholarship, teaching and research. Changing funding paradigms have spawned a new convergence of education and commerce, and competition has increased for staff and students. There is also a growing need for human and facility resource optimisation to achieve economic, educational and environmental sustainability.

Healthcare Environments The healthcare sector is facing continuing demand for “less but better space”, as hospitals and institutions struggle to reconcile the pressures of reducing overhead cost whilst also improving the effectiveness of health service delivery.

DEGW’s recent work has demonstrated that the answer lies not in cost reduction alone, but in also improving the productivity and well-being of clinicians, health practitioners and support staff through greater collaboration.

Building Owners & Developers Creating space that will sell or lease is the key imperative of building owners and developers. The space must also reflect the current and future requirements of potential occupiers and offer genuine business benefits to tenants. DEGW’s work integrates research, strategy and spatial concepts for occupants, owners & developers. It is informed by a deep understanding of the changing nature of working and learning globally, regionally and locally.

Organisational goals

Workplace performance survey

Staff focus groups

Spatial implications

RecommendationsStrategy developmentObservations

Interviews

Making data meaningful involves carefully fitting the pieces together


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Gateway Upgrade Project, Brisbane, Queensland


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New South Wales 95

Victoria 96

Queensland 97

Australian Capital Territory 98

South Australia 99

Tasmania 100

Western Australia 101

Northern Territory 102

New Zealand 103


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AugustS M T W T F S

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28 29 30 31

New South Wales

Key:Public Holidays

Government School Holidays

RDOs

Bank Holiday (not state-wide)

Other Days:Industry Picnic Day

School Staff Dev. Days

Note: All holiday dates are accurate at the time of publishing, but may be subject to change.

FebruaryS M T W T F S

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13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28

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20 21 22 23 24 25 26

27 28 29 30 31

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8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

SeptemberS M T W T F S

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11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30

NovemberS M T W T F S

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20 21 22 23 24 25 26

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JulyS M T W T F S

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10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 20 30

OctoberS M T W T F S

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9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

JanuaryS M T W T F S

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9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

DecemberS M T W T F S

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18 19 20 21 22 23 24

25 26 27 28 29 30 31

JuneS M T W T F S

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19 20 21 22 23 24 25

26 27 28 29 30

AprilS M T W T F S

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2011


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2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

Victoria

Key:Public Holidays


RDOs

Melbourne Cup Note: All holiday dates are accurate at the time of publishing, but may be subject to change.


1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28

MayS M T W T F S

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

AugustS M T W T F S

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7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31


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6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

JulyS M T W T F S

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3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 20 30


1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

MarchS M T W T F S

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6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

JuneS M T W T F S

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5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30


1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30

Other Days:Christmas Closedown

2011


30 31 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

AprilS M T W T F S

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3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

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Queensland

Key:Public Holidays


RDOs*

Royal Qld Show (Brisbane) * RDOs reflect the strict application of the award. Note: All holiday dates are accurate at the time of publishing, but may be subject to change.


1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28

MarchS M T W T F S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

JuneS M T W T F S

1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30

AugustS M T W T F S

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7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31


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4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30


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6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

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AprilS M T W T F S

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10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

JulyS M T W T F S

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10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 20 30


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2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29


1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31


30 31 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

MayS M T W T F S

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8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

Other Days:Student Free Days

Christmas Closedown

2011


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Key:Public Holidays


RDOs

Canberra Day


Family & Community Day

Christmas Closedown



30 31 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

MarchS M T W T F S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

MayS M T W T F S

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

JuneS M T W T F S

1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30

AugustS M T W T F S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31


1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30


1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

AprilS M T W T F S

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3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

JulyS M T W T F S

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10 11 12 13 14 15 16

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24 25 26 27 28 20 30


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2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29


1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31


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6 7 8 9 10 11 12

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20 21 22 23 24 25 26

27 28

2011


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South Australia

Key:Public Holidays


RDOs

Adelaide Cup

Other Days:Christmas Closedown



1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31


1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28

MarchS M T W T F S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

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MayS M T W T F S

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8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

JuneS M T W T F S

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12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30

AugustS M T W T F S

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14 15 16 17 18 19 20

21 22 23 24 25 26 27

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18 19 20 21 22 23 24

25 26 27 28 29 30


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6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30


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2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

AprilS M T W T F S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

JulyS M T W T F S

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10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 20 30


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2011


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Tasmania

Area Days:5 Jan – Devonport Cup

14 Feb – Royal Hobart Regatta

23 Feb – Launceston Cup

1 Mar – King Island Show

6 May – Agfest (Circular Head)

30 Sep – Burnie Show

6 Oct – Royal Launceston Show

14 Oct – Flinders Island Show

20 Oct – Royal Hobart Show

7 Nov – Recreation Day (North)

25 Nov – Devonport ShowNote: All holiday dates are accurate at the time of publishing, but may be subject to change.

Key:Public Holidays


RDOs

Eight Hours Day


1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28

MarchS M T W T F S

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6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

MayS M T W T F S

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

JuneS M T W T F S

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12 13 14 15 16 17 18

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AugustS M T W T F S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31


1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30


1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

AprilS M T W T F S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

JulyS M T W T F S

31 1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 20 30


30 31 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29


1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31


30 31 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

2011


Nine: W

orking Calendars

Western Australia

Key:Public Holidays


RDOs

Foundation Day


Christmas Closedown


MarchS M T W T F S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31


1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28

MayS M T W T F S

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

JuneS M T W T F S

1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30

AugustS M T W T F S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31


1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30


1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30


30 31 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

JulyS M T W T F S

31 1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 20 30


30 31 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29


1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

AprilS M T W T F S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

2011


Nin

e: W

orki

ng C

alen

dars

Northern Territory

Key:Public Holidays


Student Free Days

May Day

Regional Days – July:1 Alice Springs Show Day

8 Tennant Creek Show Day

15 Katherine Show Day

22 Darwin Show Day

Regional Day – June:24 Borroloola Show Day



1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

MayS M T W T F S

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

AugustS M T W T F S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31


1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28

MarchS M T W T F S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

JuneS M T W T F S

1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30


1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30


1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

AprilS M T W T F S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

JulyS M T W T F S

31 1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 20 30


30 31 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29


30 31 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

2011


Nine: W

orking Calendars

New Zealand

Key:Public Holidays


Waitangi Day

Provincial Holidays:17 Jan – Southland

24 Jan – Wellington

31 Jan – Auckland & Nelson

14 Mar – Taranaki

21 Mar – Otago

26 Sep – Canterbury (South)

21 Oct – Hawke’s Bay

31 Oct – Marlborough

11 Nov – Canterbury

28 Nov – Chatham Islands

5 Dec – Westland



1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28

MarchS M T W T F S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

MayS M T W T F S

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

JuneS M T W T F S

1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30

AugustS M T W T F S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31


1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30


1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30


30 31 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

AprilS M T W T F S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

JulyS M T W T F S

31 1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 20 30


30 31 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29


1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

2011


Ten:

Dir

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Melbourne Convention and Exhibition Centre, Melbourne, Victoria


Ten: Directory of O

ffices

Ten:

Directory of Key Offices

Australia and New Zealand Offices 106

International Offices 107

AECOM Main Offices 108


Ten:

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f Offi

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Australia and New Zealand

AdelaideLevel 12, 25 Grenfell Street Adelaide South Australia 5000 Telephone: +61 8 8410 4044 Fax: +61 8 8410 4166 Email: [email protected]

BrisbaneLevel 13, 324 Queen Street Brisbane Queensland 4000 Telephone: +61 7 3221 1788 Fax: +61 7 3221 3417 Email: [email protected]

CairnsSuite 8, 78 Mulgrave Road PO Box 751 Cairns Queensland 4870 Telephone: +61 7 4051 7511 Fax: +61 7 4051 7611 Email: [email protected]

CanberraSuite 702, 54 Marcus Clarke Street Canberra Australian Capital Territory 2600 GPO Box 824 Australian Capital Territory 2601 Telephone: +61 2 6257 4428 Fax: +61 2 6247 1468 Email: [email protected]

DarwinSuite 1 A, Level 1, CML Building 59 Smith Street Darwin Northern Territory 0800 PO Box 3419 Darwin Northern Territory 0801 Telephone: +61 8 8981 8020 Fax: +61 8 8941 1092 Email: [email protected]

Hobart53 Salamanca Place Hobart Tasmania 7000 Telephone: +61 3 6234 8788 Fax: +61 3 6231 1429 Email: [email protected]

MelbourneLevel 20, 350 Queen Street Melbourne Victoria 3000 Telephone: +61 3 9933 8800 Fax: +61 3 9933 8801 Email: [email protected]

PerthLevel 8, 251 Adelaide Terrace Perth Western Australia 6000 Telephone: +61 8 9221 8870 Fax: +61 8 9221 8871 Email: [email protected]

SydneyLevel 5, 100 Pacific Highway North Sydney New South Wales 2060 PO Box 1891 North Sydney New South Wales 2059 Telephone: +61 2 9956 8822 Fax: +61 2 9956 8848 Email: [email protected]

TownsvilleLevel 1, 21 Stokes Street Townsville Queensland 4810 Telephone: +61 7 4721 2788 Fax: +61 7 4721 3766 Email: [email protected]

New Zealand

AucklandLevel 10, Citigroup Centre 23 Customs Street East Auckland 1010 PO Box 935 Auckland 1140 New Zealand Telephone: +64 9 379 9903 Fax: +64 9 309 9814 Email: [email protected]

Christchurch93-95 Cambridge Terrace Christchurch 8013 New Zealand PO Box 3166 Christchurch 8140 New Zealand Telephone: +64 3 366 2669 Fax: +64 3 366 9231 Email: [email protected]

WellingtonLevel 15, Davis Langdon House 49 Boulcott Street Wellington 6011 PO Box 358 Wellington 6140 New Zealand Telephone: +64 4 472 7505 Fax: +64 4 473 3778 Email: [email protected]

Australia


Ten: Directory of O

ffices

AmericaBoston +1 617 357 1496

Honolulu +1 808 536 6100

Los Angeles +1 310 393 9411

New York +1 212 697 1340

Philadelphia +1 215 564 3104

Sacramento +1 916 925 8335

San Francisco +1 415 981 1004

Seattle +1 206 343 8119

Washington D.C. +1 202 828 6292

International

AfricaBotswana Gaborone +267 390 0711

Egypt Cairo +44 20 7061 7000

Mozambique Maputo +258 21 49 0696

South Africa Bloemfontein +27 51447 2869

Cape Town +27 21 423 7840

Durban +27 31 275 4200

George +27 44 873 5070

Johannesburg +27 11 544 1800

Corporate - Johannesburg +27 11 544 4300

Klerksdorp +27 18 468 5059

Nelspruit +27 13 741 4882

Pietermaritzburg +27 33 345 8371

Port Elizabeth +27 41 365 6221

Port Shepstone +27 39 682 4114

Pretoria +27 12 460 5100

Richards Bay +27 35 789 7624

Stellenbosch +27 21 880 8300

Vanderbijlpark +27 16 889 4159

EuropeGermany Munich +49 89 452 3383

Spain Madrid +34 91 431 0290

United KingdomEngland Birmingham +44 121 710 1100

Bristol +44 117 927 7832

Cambridge +44 122 335 1258

Heathrow +44 20 8564 6640

Leeds +44 113 243 2481

Liverpool +44 151 236 1992

London +44 20 7061 7000

Maidstone +44 1732 840 429

Manchester +44 161 819 7600

Norwich +44 1603 628 194

Oxford +44 1235 555 025

Peterborough +44 1733 362 000

Plymouth +44 1752 827 444

Southampton +44 23 8033 3438

Ireland Cork +353 21 422 2800

Dublin +353 1 676 3671

Galway +353 91 530 199

Limerick +353 61 318 870

Scotland Edinburgh +44 131 550 9440

Glasgow +44 141 248 0300

Wales Cardiff +44 29 2049 7497

Middle EastBahrain Manama +973 17 588 796

Lebanon Beirut +961 1 780 111

Qatar Doha +974 4458 0150

UAE Abu Dhabi +971 2 444 2040

Dubai +971 4 423 3690


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AECOM Main Offices

BrisbaneLevel 8, 540 Wickham Street Fortitude Valley Queensland 4006 Australia Telephone: +61 7 3553 2000 Fax: +61 7 3553 2050 Email: [email protected]

Australia

Los Angeles (Worldwide Headquarters)555 South Flower Street, Suite 3700 Los Angeles, CA 90071-2300 United States Telephone: +1 213 593 8000 Fax: +1 213 593 8730

New York605 Third Avenue New York, NY 10158 United States Telephone: +1 212 973 2900 Fax: +1 212 682 5287

Global & Americas

LondonThe Johnson Building 77 Hatton Garden United Kingdom Telephone: +44 020 7645 2000 Fax: +44 020 7645 2099

Moscow29 Serebryanicheskaya nab 109028 Russia Telephone: +7 495 782 7360 Fax: +7 495 783 7361

A full listing of AECOM offices globally is available at www.aecom.com

Europe

Hong Kong Shatin8/F, Grand Central Plaza, Tower 2 138, Shatin Rural Committee Road Shatin China Telephone: +852 2065 6262 Fax: +852 2691 2649

Asia

The Towers at the Trade CenterWest Tower Level 7, PO Box 53 Abu Dhabi United Arab Emirates Telephone: +971 2 410 9400 Fax: +971 2 410 9401

Middle East

TripoliEnd of Bevieu Road Tajura Libya Telephone: +021 465 0147 Fax: +1 212 682 5287

Africa


Ten: Directory of O

ffices

Davis Langdon, an AECOM company, Blue Book 201113th Edition © 2011

We would like to acknowledge:Photography by Nose to Tail (www.nosetotail.com.au)

Printed by William Troedel Pty Ltd (www.troedel.com.au)www.davislangdon.com www.aecom.com


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blue-book-2011

Documents

knight frank research

beam structural steel

grade parameters assess

floor area 500m

typical base building

embodied carbon metric

global reporting initiative

issue occupation certificates