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Working andSurviving

in theMiddle East

Adopting ProjectCollaboration

Trends in the CivilLiability of Building

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The Journal of the AustralianInstitute of Quantity Surveyors

Our Cover

9 Working andSurviving inthe Middle East

COLIN MACLEMAN AAIQSlives and works in the UnitedArab Emirates in the capital,Abu Dhabi since March 2005.He filed this report about thecountry comprised ofseparate Emirates which canbe likened to States inAustralia.

Construction methods theretend to be slightly on theolder style. Suggestions ofnew methods and newtechnologies are difficult toget accepted even whenthere could be a possiblesaving in cost or time.

19 Adopting Project CollaborationAustralia has fallen well behind Europe in the acceptance andadoption of Project collaboration systems, and as a result istrailing in procurement and facilities managementbest practice, says JOHN LOWRY.

31 Trends in the Civil Liability of Building

KIM LOVEGROVE and NINA MCLAUGHLIN write that the civilliability of Building Surveyors is an evolving field with thejurisprudence developing in VCAT. It has established a widerresponsibility owed by Building Surveyors to owners and othersthan may previously have been envisaged upon theprivatisation of the profession.

36 Survey Highlights Green Building Trend

Rising numbers of Victorias building practitioners are activelyencouraging their customers to build green, according to thelatest Building Commission Pulse survey.

PLUS...

From the PresidentThe Conduit Recruitment ReportAIQS Building Cost IndexAIQS Current Construction CostsBriefings

THE

BUILDING

ECONOMISTThe Journal of the Australian Institute of Quantity Surveyors

JUNE 2008

THE BUILDING ECONOMIST JUNE 20082

THE

BUILDING

ECONOMISTThe Journal of the Australian Institute of Quantity Surveyors

JUNE 2008

It has been 50 years sinceThiess made national headlinesas the first Australian companyto ever win a major constructioncontract.

On May 1st 1958 PrimeMinister Menzies announcedThiess would build the ToomaDam and Tooma-Tumut Tunnelas part of the historic SnowyMountains Scheme.

Valued at more than $18million the contract was thelargest of its kind ever attempted

Briefings.

by an Australian company andwould cost twelve times thatamount to complete today. Thebold decision helped establishAustralia as an independent andresourceful country with proven,world-leading constructioncapabilities.

Thiess will celebrate the50th anniversary paying homageto the forward thinking andinnovative Thiess Bros whosehard work and determinationhelped to not only build a

contracting giant but allowedAustralia to shine on the worldstage.

Thiess set a world firstrecord excavating the Tooma-Tumut Tunnel. Never before had

anyone beenable to deliver160 metre gainsin a single week.To work at thisrate wasunheard of inthose days andset a newbenchmark thatchallenged theindustry on aglobal scale.

Thiesswent on tosecure roughly aquarter of allcontracts let forthe SnowyMountainsScheme, atestament totheir exceptionaldeliverystandards and

innovative work practices.

Abigroup addressesskills shortages

Todays constructionenvironment is vastly different towhen many site workersoriginally entered the workforceand as a result, skillsrequirements have changed.Abigroup is addressingworkplace shortages by

Snowy Mountains 50 yearmilestone for Thiess

EditorIan T Blyth Ph.D

ContributionsArticles relevant to constructioneconomics and related subjects, pictorialmaterial, letters etc are welcome. Noresponsibility is accepted for unsolicitedmaterial. All contributions should beaddressed to the editor: 9 Mount ViewRoad Wandong Victoria 3758.Tel: 0400 978 976.Fax: (02) 6285 2427.Email [email protected] our website for contributionguidelines.The Institute does not, as a body, hold

itself responsible for statements madeand opinions expressed in this Journal.All rights of translation and reproductionare reserved.

General ManagerTerry L Sanders LFASAESubscriptionsAustralian Institute of QuantitySurveyors, National Office, PO Box 301Deakin West ACT 2600.Tel: (02) 6282 2222. Fax (02)6285 2427.Published quarterly $79.00 (includingGST) annual subscription (Airmail rateson request)CirculationOver 3500 copies

General and Features AdvertisingAustralian Institute of QuantitySurveyors, National Office, PO Box 301Deakin West ACT 2600.Tel: (02) 6282 2222. Fax (02)6285 2427.Email: [email protected] as a PDF is preferred.

ISSN 0007-3431Printed for the Australian Institute ofQuantity Surveyors (ACN 008 485 809)by Union Offset Printers 16 Nyrang StFyshwick ACT 2609

THE BUILDING ECONOMIST JUNE 2008 3

BRIEFINGS

providing staff with the chanceto further develop andstrengthen their skills andexperiences with formal training.

Earlier this monthAbigroup foremen and leadinghands working on the BonvilleUpgrade on NSWs North Coastgraduated from a TAFE NSWcomputer course.

As a result, the graduatesenhanced computer literacy hasgiven them the ability to not onlydevelop in their existing rolesbut also to tap into futuretraining with the company.

The participants receiveda Statement of Attainment in thenationally recognisedcompetencies of Operate apersonal computer and Sendand retrieve information usingweb browsers and email.

The participantsundertook the training as part ofthe Workplace EnglishLanguage and Literacy (WELL)Programme, which is funded bythe Department of Education,Science and Training.

By recognising a skillsgap in Abigroups workforce, wehave taken this as anopportunity to train valuedemployers and arm them withthe necessary skills topotentially take on greaterresponsibility, said AbigroupLearning and DevelopmentManager Michael Hall.

Those that completed thecertificate will now be able toparticipate in Abigroups

professional developmentprogram to further extend theirskills. Due to the success of theWELL program at Bonville,further courses will also shortlycommence on AbigroupsCoolac, K2B and HumeHighway Southern Alliancesites.

Six indigenous traineesfrom the Bonville Upgrade alsosuccessfully completed the CivilConstruction Certificate IIcourse. The ability that thetrainees displayed to learn anddevelop into competentconstruction workers isexemplified by the fact theyhave become an integral part oftheir respective work crews.

The trainees havecemented themselves a careerin the construction industry,said Abigroups Regional OH&SCo-ordinator Dan Guthrie.

ISO principles forconstruction worldwide

The new ISO 15392:2008standard establishesinternationally recognisedprinciples for sustainability inbuilding construction.

It provides a commonbasis for communicationbetween stakeholders such asbuilders and architects, productmanufacturers and designers,building owners, policy makersand regulators, housingauthorities, and consumers.

ISO 15392 is based onthe concept of sustainabledevelopment as it applies tobuildings and other constructionworks, from "the cradle to thegrave". Over their life cycle,construction works absorbconsiderable resources andcontribute to the transformationof the environment. As a result,they can have considerableeconomic consequences, andimpacts on both the environmentand human health.

The foundationselaborated in ISO 15392:2008,Sustainability in buildingconstruction Generalprinciples, form the basis for asuite of standards intended toaddress specific issues andaspects of sustainability.

They are applicable tobuildings and other constructionworks individually andcollectively, as well as tobuilding materials, products,services and processes.

The building andconstruction sector is a keysector in national economiesand the built environment is amajor element in determiningquality of life, as well ascontributing to cultural identityand heritage.

Addressing sustainabilityin buildings and otherconstruction works includes theinterpretation and considerationof sustainable development interms of its three primaryaspects economic,


BRIEFINGS

have spent their valuable time andhave shared their knowledge andexperience with their colleaguesand the Faculty of Architect atRMIT University and thosestudents who have put so mucheffort into this guide; their spirit ofinnovation and their passion tosolve these new designchallenges in general practice isinspirational," said Dr Huy QuocAn.

The workbook is designedas a scrapbook in which GPs, thepractice team and their architectscan write notes, draw models andshare ideas. Designing andbuilding a general practice can bea daunting task and requiresconsideration of the spatialenvironment and the configurationof the health care setting, saidGraham Crist, RMIT ArchitectureProgram Director.

The key message thatcomes out of the study is thatdesign can play a vital role in thequality of the environment and inturn the quality of the patientexperience, said Graham Crist.

Rebirth of a clinic suggeststhat good design will ensure that:a general practice is suited to theparticular needs of the communityit serves a general practice isenvironmentally aware andengages design features toimprove building sustainability andreduce the carbon footprint.

Good design also considersthe current challenges for generalpractices: the increasing size ofmultidisciplinary teams a focus oneducation the streamlining ofchronic and acute care theimportance of safety for patientsand staff.

Australia joins structuraltimber consortium

Australia will contribute to aninternational research consortiumthat aims to revolutionise theconstruction of low-rise, multi-storey building developments forcommercial, educational,recreational and residentialpurposes.

Forest and Wood ProductsAustralia (FWPA) is one of the

environmental, and socialaspects while meeting therequirements for technical andfunctional performance.

The principles elaboratedin ISO 15392 take into accountthat while the challenge ofsustainable development isglobal, the strategies foraddressing sustainability inbuilding construction areessentially local and differ incontext and content from regionto region.

The standard thusacknowledges that thesestrategies will reflect the context,the preconditions and thepriorities and needs, not only inthe built environment, but also inthe social environment. Thissocial environment includessocial equity, culture, traditions,heritage, health and comfort,social infrastructure and safeand healthy environments. Itmay, in addition, particularly indeveloping countries, includepoverty reduction and jobcreation.

ISO 15392:2008,Sustainability in buildingconstruction Generalprinciples was prepared by ISOtechnical committee ISO/TC 59,Building construction,subcommittee SC 17,Sustainability in buildingconstruction. It is available fromISO national member institutesand from ISO CentralSecretariat

A New Vision forPractice Design

The Royal Australian College ofGeneral Practitioners (RACGP),together with the RMIT Schoolof Architecture and Design, haslaunched a new architecturalworkbook to guide generalpractitioners and architects indesigning safe and effectiveworkplaces.

Our profession isevolving, general practice iswelcoming multi-disciplinaryclinicians into our teams; we are

working closely with practicenurses and other allied healthprofessionals to deliver care toour patients. As our workplacechanges, there are newchallenges in how we design ourpractices to ensure safety andeffectiveness for patients andstaff, said Dr VasanthaPreetham, RACGP Presidentand Perth-based GP.

The new RACGPresource is called Rebirth of aclinic an architecturalworkbook for general practiceand primary care and is apractical and innovativeresource that provides a guideto designing general practicesand primary health care facilitiesin a way that meets the needs ofpatients and staff into the longterm.

Sadly, workplaceviolence is a significant problemin general practice; with onerecent Australian studysuggesting that as many as twoin three GPs are exposed towork-related violence in any 12-month period.

As a profession, we needgeneral practices to be a havenwhere the sick and the frail canobtain the care they need in asafe and comfortableenvironment. We want generalpractice surgeries to remainhubs of their community, saidDr Preetham.

We are very pleased thatthe RMIT University, through itsSchool of Architecture andDesign, has recognised theimportance of this task, andbrought its significantarchitectural expertise to thetask, Dr Preetham added.

Through thedevelopment of this workbookwe have kept in touch with theneeds of grassroots doctors andtheir teams to ensure the designsuggestions reflect the reality onthe ground," said Dr Huy QuocAn, member of RACGP NationalStanding Committee - GPAdvocacy and Support.

I want to thank thosedoctors and their teams who

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more quickly. It will increase theuse of timber in construction ofthese buildings, and ourcapacity to store carbon andoffset emissions, Mr Sinclairsaid.

The aim is to develop newbuilding solutions that willreduce environmental impacts.

It will also add value tolower grade wood products byincorporating them as part ofpre-fabricated components of ahigher-value structuralconstruction system.

The research largelyrelates to plantation timber andlaminated veneer lumber, butthere may be some benefits forthe traditional timber industry.

In announcing thesuccessful STIC consortiumapplication Chief Executive ofthe New Zealand WoodProcessors Association PeterBodeker said buildings makinguse of the new constructiontechnology would have a lowerstructural weight, allowing for

partners in the Structural TimberInnovation Company (STIC)research consortium announcedin New Zealand last week.The project has total industryfunding of $1 million a year for fiveyears, with an annual contributionfrom FWPA of $250,000.

The Western Australianforest industries companyWesbeam is also a consortiummember. The New ZealandGovernment will match theindustry investment on a dollar-for-dollar basis.

FWPA managing directorRic Sinclair says contributing tothe project will allow Australiaaccess to the new technologybeing developed for laminatedtimber use in wide-span, multi-storey buildings.

Joining with thisinternational effort potentiallyoffers us leadership opportunitiesin adopting this new technologyand will speed the researchefforts, so that marketopportunities can be developed

easier transportation ofcomponents, with less expensivefoundations.

They would be easier toheat and cool, with better acousticperformance and would be moreresistant to major earthquakesand extreme weather.

The research will be co-ordinated through universities inCanterbury and Auckland and theUniversity of Technology Sydney.STIC is expected to formally startoperating from 1 July 2008.


In my editorial for this issue I would like to share with you a speech made byJohn Lowry to the CRC for Construction Innovation Conference last month.

The Australian Institute of Quantity Surveyors recognises the importance of

participating in collaborative construction industry research, especially in view of the convergence of knowledge and

technology that is re-shaping the world as we know it.

The CRC has, as always, assembled an impressive array of academic researchers and industry practitioners and it

helps keep Australia in the forefront of construction industry research and practice. The AIQS supports the continued

work of the CRC for construction innovation. The AIQS looks forward to participating with the CRC in it's new live

as the Sustainable Development CRC, and we wish it every success with its new direction and new initiatives.

Enabling innovation through developing standards for business processes and other initiatives is a strength of the

AIQS. It has contributed to the industry in this way for 100 years. The Institute is taking the opportunity to publish a

history of quantity surveying in Australia. Far from being a dissertation on Ethel the Aardvark, it turns out to be a

rollicking tale of the ups and downs of business in the wonderful industry that we all call our life's work.

The AIQS has been singularly successful in establishing measurement standards for Cost Planning (The Australian

Cost management manual), and a sophisticated contractual financial interface (Australian Standard Method of

Measurement). These are the standards that allow practitioners to confidently plan and predict the financial

performance of construction and development projects. They are the enablers that leverage value from new

technologies.

AIQS has also recently commenced the first and only online Authorised Nominating Authority, in Queensland, to

implement security of payments legislation in the most efficient and practical way.

The AIQS also manages the qualifications for quantity surveyors through its Standards of Competence, accreditation

of University degree courses and the increasing demand for vocational training for todays skills, as universities let

these go. We are not standing still on education. Recognising the convergence of demand, technology and the

information explosion, we have commissioned a major research study to determine how quantity surveyors of the

future will be educated, trained and qualified to serve the business of the future.

The AIQS is a leading contributor in the regional and global cost management scenes. AIQS is a founding member of

the Pacific Association of Quantity Surveyors. We have been collaborating with our regional colleagues for 10 years.

It is now one of the most respected and influential groupings of its kind in the region, with members throughout the

Pacific, Asia and North America, including China and the USA.

John Popplewell FAIQS ICECA

National President

FROM THE PRESIDENT

EnablingInnovation

andDevelopingStandards

THE REGULATORS


COVER STORY


group of companies from 1974until 1994 in both New SouthWales and Queensland, havingattended University NSWgaining both undergraduate andpost graduate qualifications inBuilding in 1966 and 1972respectively.

From 1994 until 2005 Ihad spent much of my timeliving in SE Queensland where Ibecame a mediator involved indispute resolution matters withthe Queensland Building

COLIN MACLEMAN AAIQSlives and works in the UnitedArab Emirates in the capital,Abu Dhabi since March 2005.This is his report.

The country is comprised ofseparate Emirates which can belikened to States in Australia. Thecapital, Abu Dhabi, is where theUAE President lives.

Prior to moving to the UAE Ihad run my own construction

Authorities, and a member of theAIQS panel of Expert Witnesses.

In 2003 I undertook somecontract work for Boeing Australiaand indirectly for theCommonwealth of Australia on alarge defence industryinfrastructure project involving theaero industry. This defence aeroindustry work led to my beingasked by one of Australias largestmulti disciplinary consulting firmsto urgently take on the task ofoverseeing the construction of two

Working andWorking and

SurvivingSurviving

in thein the

Middle EastMiddle East


COVER STORY

new airport terminalsfor Abu DhabiInternational Airport.

When engagedfrom Australia I wasunaware that my task would involve the designdevelopment and overseeing of the construction aswell as certification and financial management of 2new interim terminals valued at approximatelyAUD65 million all to be completed in 16 weeks.Terminal 2 comprised an almost completely newfacility of 14,000 square metres one kilometredistance from Terminal One.

This is how projects evolve here. Theycommence on a handshake, with only 50% to 65%design complete and at times are completed with

the Contract still notsigned. Contractors herein the UAE need deeppockets. Most contractsrequire 10% Performance

Bonds, 10% Bank Guarantee against an advancedpayment and a full 10% retention over the durationof the contract.

Timeframes for construction and completionare often totally unrealistic requiring 6 day weekoperation and 14 hours per day.

Contrary to perceived ideas of the MiddleEast there is a shortage of cash, or it may be thatthose who have it do not want to part with it.Accounts, including progress payments, will run atanything from 45 days to 120 days. Suppliers are

Members of the AIQS are bound by a strict Code of Conduct and are requiredto maintain high standards of ethics and professionalism in their dealings withclients and each other.

Fellows are members of the AIQS who have been elevated to this highest grade in recognitionof their levels of education, professional service and contribution to the AIQS. [Post nominalsFAIQS - LFAIQS for Life Fellows)]Associates are members who have appropriate recognised tertiary qualifications, the requiredyears of practice and passed an Assessment of Professional Competence. [Post nominalsAAIQS]Affiliates are members of the Institute who have other qualifications and have the required yearsof practice. [Post nominals AIQS (Affil)]Probationers are members of the AIQS who are Graduates or other appropriately qualified peo-ple (including members of recognised QS Institutes in other countries). They are entered as Pro-bationary Members until they satisfy certain experience requirements and pass the Assessmentof Professional Competence (APC).Students are members who are undertaking appropriate full time or part time studies.

Technician membership is provided for persons who have obtained TAFE diplomas from recog-nised courses who intend making a career in Quantity Surveying or persons with diplomas inQuantity Surveying and some practical experience.

COVER STORY


often asked to extend paymentterms to 180 days.

On an average contracthere of say AED 1 billion(approximately AUD350 million),I have administered projectswhere I believe the contractor isfinancially committed to 2 xAED100 million bankguarantees, has received anadvance payment of 10%repayable at 1% per month, buthas a full 10% retention sumretained often with no provisionfor payment for materials off site(MOS) and progress paymentsnot forthcoming for up to 120days.

I believe from my contractand mediation experience inAustralia that most projectsthere would be closed if aprogress payment amounting toseveral million were more than30 days late. Not the case here.Discussions take place behind

closed doors and projectmanagers are rarely a party totheir outcome which seems tocompletely avoid any formaldispute process.

Most contracts areundertaken under FIDICcontract forms. However NEC3Contracts are becomingincreasingly popular as buildingprocurers understand that theyneed to be pro active, fair andjust with major contractors to gettheir large projects completedunder a partnering contractualenvironment.

UAE nationals are verytrusting and honourable people.Generally their deeds are asgood as their word and ahandshake and mutual respectare more important than asigned Contract. In my earlydays here I experienced someinstances where myadministration of a large

Contract attracted criticism dueto my over zealous quoting ofContract clauses andrequirements. Verbalcommunication can be far moreeffective than written workwhere western terminology maybe misconstrued, misunderstoodor misinterpreted.

Construction methodshere tend to be slightly on theolder style. Suggestions of newmethods and new technologiesare difficult to get accepted evenwhen there could be a possiblesaving in cost or time.

Many older buildings(going back only 30 years) areshowing severe signs of poorconstruction, with use ofunsatisfactory raw materials inconcrete production andresultant decay in structuralelements.

COVER STORY


With the current level ofwestern educated constructionpeople, well versed and trainedin the production of high qualityin situ concrete structures, thequality of new construction is atan acceptable level.

I have been endeavouringto encourage the introduction ofmore multi-storied constructionin steel framed and permanentformwork to aid the speed ofconstruction to meet unrealistictimeframes.

This has been difficult asthere is a resistance to anythingthat is not reinforced concrete,but also because there is asevere shortage of rolled steel

Most projects of a reasonablesize will have combined siteoffice staff levels comprised ofsome 150 to 200 people.

Much of my work herehas been as Chief ResidentEngineer, Design Manager, orSenior Construction Managerengaged on the client sideoverseeing and responsible forensuring satisfactory delivery bythe contractor of a project to theowner. In this role of clientrepresentative I have invariablyhad a site staff of 15 to 35people reporting to me andassisting in drawing approvals.

These comprisearchitects, civil and structuralengineers, planning engineers,services and specialist systemsengineers and quantitysurveyors. All assist withproviding support in thecommercial administration of aproject.

Since 1994 I have beenan author to The Law BookCompany and ThomsonPublishing writing commentaryon the Building Code ofAustralia (BCA).

The UAE has no nationalbuilding code. The result beingthat the tallest buildings in theworld are being built here using

sections. Such structures ofcourse still leave the problem offire protection unanswered justas they do in Australia andelsewhere in the world.

My experience inconstruction in Australia hasbeen that a contractor will simplybe provided with sets ofdrawings that allow constructionto take place. Practice in theMiddle East has evolved in sucha way that a contractor cannotbuild anything based on theconsultant documentationwithout first producing a ShopDrawing.

This then has to beapproved by the ResidentEngineer engaged by the clientwho in turn refers it to a clientProject Manager who finallyreviews and approves it andonly then will issue it as a noobjection status forconstruction.

This process burns paperand causes an average 10 daysto 2 weeks to be spent oninternal shop drawing approvals.

COVER STORY


a conglomerate of building codesfrom the UK and the USA.No-one is too sure as to whichregulations apply in a givencircumstance and the resultingdivergence of opinion in matterssuch as egress distances, fireresistance levels and so on createconfusion.

Where I am faced with aregulatory decision, havingassessed the particularcircumstance, I often rely uponthe BCA.

Further, given the extremesof climate conditions, there is littlerecognition of energy efficiencythus little consideration fororientation, window exposure andshading. Similarly there is scantregard for recycling of grey wateror waste products.

I am currently involved invarying capacities in 4 buildingseach of over 35 storeys and up to88 storeys. Due to regulatoryconfusion there is often a dilemmaas to what is required so the

normal attitude is to double itand add a bit more. The result isgross over engineering.

Reinforced concreteelements at 50% to 65% designstage will nominate weights ofreinforcing steel per cubic metreof concrete. Such weights inAustralia for 45 to 50 Knconcrete will vary from possiblyas low as 90 kg/m3 to 120kg/mm3. Similar elements in theUAE will vary from 200kg/m3 to300kg/m3.

On some projects I workwith a structural engineer born inSouth Africa who practiced inWestern Australia for 10 yearsprior to moving to Dubai in theUAE. He was recently asked todo a design check on thereinforcement design on aweight per volume basis on a 50storey building. His westerneducated analysis reduced thenominated volumes ofreinforcing steel for the wholebuilding structure by 50%.

Due to the poor bearingvalue of the building foundationmulti-storied buildings willinvariably be designed on largebearing area raft slabs of up to

1200mm to 1400mm thicknesswhich at design stage willnominate 300kg/m3 of reinforcingsteel.

Last month one such raftslab was poured continuously andthus monolithically to a totalvolume of 13,000 m3 of concrete.

I recently measured thebasement car park (averaging 2 car parking levels) and raftstructures of a large mixed usedevelopment that had its lowestlevel 5,500mm below water tablelevel over a site of some 50,000m2.

The total concrete volumeto get to ground floor or podiumlevel was in the order of 180,000m3 of concrete and all of thenominated reinforcing steelvolumes were from 180 to 300 kg/m3.

As an interestingcomparison I offer the followinginformation on UAE costs.The aggregated cost of reinforcedconcrete increased by 26% fromAugust 2006 to August 2007

The percentage of areinforced concrete structure inthe overall project cost is as lowas 15% to 18%. (Probably a factorcontributing to this low percentageof structure cost is that site labouris cheap. Almost all fitout items,including services items, are fullyimported from countries with highlabour costs such as Australia,

COVER STORY


Great Britain, USA , Italy, Franceetc)

The cost of 1 m3 ofcompleted structural elementaveraged in slabs, beams andcolumns is in the order ofAED1,100 to AED1,350 per m3(AUD 335.00 to 410.00 / m3).

Reinforced concrete beamscast insitu using 40Kn concretewith 200kg/m3 of reinforcing steeland spanning moderate spans of7 metres or thereabouts are up to800mm and 900mm deep.As an untrained and unqualifiedstructural engineer but from myexperience much of the work isover designed due to the problemof undefined regulatorycompliance.

Costs per sq.m ofcompleted buildings in the UAE,indicative only, could be:

Multi level car park AED 3,200 /m2 (AUD 970). Low risecommercial office AED 4,000 /m2 (AUD 1215). Low rise highclass villas AED 4,200 / m2(AUD 1275). High riseresidential and Commercial AED4,500 /m2 (AUD 1,365)

I am confident that mostof my Australian colleagues willagree that these costs aresignificantly lower than thosewhich could be expected inAustralia.

An interesting budgetdiscussed here a few weeks agowas for the design andcompletion of a high quality1,400 bed oncology hospital fora budget of GBP 6 billion (AUD14.5 billion).

I am sure that there wouldbe agreement that this is a veryserious size project by worldstandards. This budget would bepredicated on local UAEconstruction costs but obviouslyall services, fittings and medicalequipment would be importedfrom overseas.

A new waterfront city, AlRaha Beach, being developed

by Abu Dhabis largest publiclisted developer has a budgetover the next 5 years of AED60billion (AUD18.2 billion).

The project sizes here arevery large. The 2 largest I havebeen involved in to date are inthe order of AED 2.5 to 2.7billion (AUD 800 to 900 million).

Each project employs upto 6,000 people on siteconsisting of varyingcapabilities, but generally poorlyskilled and trained tradesmen.Improvement in productivity andreduction in employee numberscould be achieved by training,even if only by the largestcontractors, but there is notmuch initiative shown in thisarea.

Most expatriate on siteemployees are imported on 3year contracts from India,Bangladesh, Nepal, and thePhilippines. A problem I foreseefacing the construction industryin the Middle East is thecontinuing availability of subcontinent labour.

As India particularlybecomes more vibrant and itseconomy continues to expand at7.5% to 9% per annum theattraction for an unskilled Indianworker to leave his family towork in the Middle East on 3

COVER STORY


year contracts for menial wageswill become less attractive andthus labour will become a morescarce and more expensivecommodity.

As an example ofemployee numbers the newTerminal 3 building, EtihadTerminal, at Abu DhabiInternational Airport,commenced in August 2006 anddue for completion in June 2008has consumed just over6,450,000 site labour hours upuntil the end of 2007.Serious and fatal accidents onsite to date are zero. Currentcontract value is approximatelyAED1.2 billion.

For those of us involved inoverseeing construction,spending about 2 to 3 hours onsite each day over an 11 dayfortnight, summer conditions canbe fairly arduous. July andAugust outdoor temperatures onconstruction sites frequently sitat 48 to 54 degrees for days onend with humidity at 50% to70%.

Some of the above maybe seen to portray a bleakpicture of construction here. Thisis not the case. The large, fasttrack nature of most projectsmakes it a very exciting place tobe engaged in construction.

The level of plannedexpenditure in construction overthe next 5 to 7 years in AbuDhabi alone exceeds AED500billion (AUD 150 to 160 billion).This excludes overall Gulf areaprojects such as a new railsystem and new powergeneration facilities.

There are a large numberof Australian constructionexecutives here and more beingengaged every month.Australian tertiary educatedconstruction executives arehighly regarded by UAEcompanies and enjoy a pleasantlifestyle in senior positions inexchange for an average 55hour working week.

Building EconomistContributor's Guide

Types of ArticlesThe Building Economist publishes articles that focus on issues andpractices in quantity surveying, cost engineering and those disciplinesinfluence on the built environment.

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IN THE WORKPLACE


My last article talked abouthow difficult it is thesedays to find a good QS andhow you need to searchevery talent pool, in everylocation and with everymethod to find them.

After you have spentvaluable time and money findingthem and inducting them to yoursystems and methodologies, thelast thing you want is for them toleave after a short stint! It notonly costs more money toreplace them (amount say $20-30k) but also disrupts yourbusiness flow and general officeequilibrium.

MaintainingMaintaining

thethe

TroopsTroops

IN THE WORKPLACE


No what we need to do is to provide our employees with a vibrant, supportive and challenging work environment that will secure their services for years. Before I go through some strategies on providing this type of robust culture lets quickly list the top five reasons why people leave companies in the first place. They are: Their Manager people

leave to get away from someone

Their salary underpaid and their mates in the same role are getting a better deal

Their career progression not mapped out for them or nowhere to go

Their work environment unstimulating and drab or not a good fit culturally

Commuting hell too much of a nightmare to get to work and back

They just dont enjoy the job anymore want a career change

The above points are in no particular order and surprisingly salary is somewhere at the bottom of the list in levels of importance although I see this changing as the cost of living goes through the roof! So how can we ensure our highly valued staff stay for the long term. Here are a few ways that may help: Appoint appropriate and skilled managers this is a massive topic in itself and I dont intend to go through how we can be better managers. Managing staff is a skill that very few people have and it takes years of experience to get it right. Staff need to respect their direct reports and want to perform for them just like a child wants to show off to his parents! Staff should be praised and encouraged and mentored. They should also be disciplined when appropriate but when this

occurs it should be crystal clear to the staff member as to why its happening. Ensure they are paid the market salary for their position or slightly above. There are numerous salary surveys out there so there are no excuses for not knowing what the current level is. Add in other benefits like medical insurance, gym membership, bonus days off and performance bonuses tied to measurable KPIs. All this will ensure you stand out from your competitors. Provide a clear career road map including the measurable steps needed to advance. Employees should not be in the dark as to how they can progress and they need regular meetings with their manager to discuss how they are doing every 6 months as a minimum. These meetings need to be fixed and not cancelled last minute because something else more important has come up that just gives the impression that you dont care! And this treatment should extend from the Associates to the receptionist. Delegate as much responsibility as possible and as desired by the employee but only if they want it. Some employees are happy to just bash out those BoQs and dont want to be leaders. Perhaps reward these guys with days off and late starts if they worked the graveyard shift to meet a deadline. Provide a vibrant, clean and refreshing environment. Paint some walls, invest in some new workstations, put in a bar and hang up some pictures! You spend so much time at work so you want to feel good in your seat. Working around dusty furniture and old coffee stains wont inspire anyone.

Dont just have a flash reception to impress your visitors have a flash office to impress everyone. Celebrate successes with social functions, lunches and Friday night drinks. You can combine staff events with networking events like the AIQS Lawn Bowls evenings or the now legendary RICS Curry Night. Get some T-shirts made and go ten pin bowling always good for a laugh. Plan the Christmas party at a special venue and have a theme so everyone is talking about it for years to come. A bonded and happy team is a productive team. Communicate constantly. Dont let small issues eat someone alive until its too late. We can usually resolve differences if we want to. Conduct exit interviews when people leave and use an external party to do them. This way you will get an honest explanation of why someone left and you will gain invaluable knowledge of any areas of your office operation and environment that may need changing. If employees have a clear direction, are paid fairly and enjoy their work environment, then they will stay. However if the culture is weak and they are mismanaged then they have plenty of other options which are just a mouse click away!

Adam Walker MRICS AAIQS is a Director at Conduit Recruitment.

Get your copy now! See order form inside this issue.

Australia has fallen wellbehind Europe in theacceptance and adoptionof Project collaborationsystems, and as a result istrailing in procurement andfacilities managementbest practice, says JOHNLOWRY.

Since the advent of electroniccommunications in the mid1980's, beyond the use of faxand telephone, the notion ofseamlessly integratedinformation flows has been atantalizing prospect for theconstruction industry, whereinformation flows are the vitalnerve systems of projects, evenif the fact is less well recognisedor understood by the industry.

There has been anynumber of entrants into themarket, offering a variety ofsystems and approaches toelectronic collaboration sinceabout 1990. Some of the earlysystems offered exceptionally

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thoroughly developed responsesto the technical issues, even ifthe technology was clumsy.Older database technologiesrelied on the use of dedicated,competent and experiencedoperators to manage therelatively complex operations.

They were not userfriendly. Data transfer wasdirect-linked through expensiveISDN or frame relay systems.As a result they were realisticallyonly available to the biggest andmost committed businesses andprojects. However, thesesystems developed theknowledge base for those whofollowed.

At the same time,academic and industry groups,particularly in the UK, wereundertaking research intoconstruction industry processes,workflow and supply-chainintegration. This researchresulted in the development ofsophisticated ProjectCollaboration Systems such asBIW Technologies.

The development andacceptance of collaborativesystems rapidly increasedtowards the end of the '90's withthe adoption of graphic userinterfaces (Apple, Windows) thatmade access to computersystems more available to casualusers and industry participantswho are required to multi-taskdata storage and manipulationwith professional andmanagement tasks.

The internet has alsoaccelerated the development andadoption of integrated systems byproviding cheap and ready accessto electronic communications. Ithas also given everyone theopportunity to become familiarand comfortable withcommunications and informationgathering using email and theworld wide web.

By 2003, researchersgenerally agree that electronicProject Collaboration (PCS) was amature technology and they werealready moving on to 3 and 4 DInformation modelling. the market

Adopting ProjectAdopting Project

CollaborationCollaboration

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has settled into three basicmodels for delivering informationcollaboration. The market willdecide how and when to use thedifferent models and which willsurvive and prosper.

The next phase in thecycle of this business ecosystemis the wholesale adoption ofcollaborative systems. Thispaper examines how and whywe are adopting electroniccollaboration in the constructionsector.

Standards for ElectronicCollaborationIt is obvious that collaborationbetween different systems,using electronic data transfer,requires IT standards to allowthe seamless transfer ofinterpreted data from onesystem to another. This is notsuch a vital issue wherecollaboration is undertakenusing single system models.

At the generic level thereis any number of national andinternational standards for datatransfer. Whilst there is stillsome competition amongstproprietary systems to becomethe standard, Governments areleading the way in adoptingopen standards.

Examples of this includeExtensible Markup Language(XML), a simple, very flexibletext format derived from SGML(ISO 8879). Originally designedto meet the challenges of large-

scale electronic publishing, XMLis also playing an increasinglyimportant role in the exchangeof a wide variety of data on theWeb and elsewhere.

The Web DesignStandards Project (WaSP),developed by W3C, the WorldWide Web consortium, is drivingthe push for common webbrowser and web designstandards. These standards arebecoming the basis upon whichall web sites are coded.

Recently the US federalgovernment accepted opendocument standards forproductivity suites, effectivelyending Microsoft's push forwholesale adoption of acorporate standard.

With respect to theconstruction sector, a number oforganisations have attempted todeveloped standards, byagreement amongst vendors,standards for data transfer.These include:CITE (Construction IndustryTrading Electronically) is acollaborative electronic businessinitiative for the UK constructionindustry. It was launched in1995 and formally marked thestart of a major collaborativeundertaking with activeparticipants from theprofessions, contractors, sub-contractors and suppliers.

CITE has been involvedwith UN/CEFACT group TBG6in developing a Business

Standard for Tendering. The TBG6 group covers the ArchitectureEngineering and Constructionsector and has representativesfrom France, Germany, Japan,Korea, and the UK. Work wasrecently completed on the firstdraft of the business standard.

The work of TBG 6 hasbeen carried out according to theUN/CEFACT ModellingMethodology which sets out howbusiness processes andinformation exchanges should bedescribed. The business standarditself is syntax neutral. It does notdefine whether the final exchangestandard is a flat file, XML orsome other format. This means,that unlike previous standardswork, the analysis work will bereusable.

IAI, the InternationalAlliance for Interoperability, hasmoved strongly to dominate theworld of data transmissionstandards for the constructionsector. Whilst its primary focusappears to be on the interchangeof CAD data, it is developing awide range of data definitionsrelating to all aspects of dataexchange, including cost andquantity data.

The Australian CRC(Cooperative Research Centre)for Construction Innovation hasdeveloped prototypemeasurement and estimatingsystems, based on the IAIstandard Industry FoundationClasses. This work was led by

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professor Robin Drogemuller, ofQueensland University ofTechnology.

As recognised by CITE andIAI, there is another level ofstandards that must developbehind IT standards in order forcollaboration to operate effectivelyat an operational level. This is thelevel of workflow and businessprocess standards. This level ofdata standards and datamanipulation is still in its infancy.

We are beginning to see amove towards the development ofbusiness process standards, whilesome industries are welladvanced. For example,standards are emerging aroundhow payrolls are done, e-commerce payment and, mostimportant, how supply chains areconnected. IBM's strategicplanner,

Cawley, says, to deliver theproductivity enhancements wewant, We need more and morecommon standards.

These are standards abouthow we do business together. Themore we connect everyonethrough common communicationstandards, like XML, and on top ofthis through standardisedbusiness processes, the easier itis to chop up work and sendpieces of it to be done anywherein the world and the more itincreases productivity andenables my whole digitalecosystem to collaborate better,cheaper and faster and the more

energy my employees have toconcentrate on high-touch, high-value-add, customisedinnovation or service thatdifferentiates one company fromanother. Standards don't stopinnovation, they just clear awaya lot of extraneous stuff so youcan focus on what reallymatters

Consider that the PacificAssociation of QuantitySurveyors has only just begun todiscuss the idea of commonstandard methods ofmeasurement and otherbusiness process standards forcontract financial administration.There is no vision for adistributed, connected future atthis time.

The Singapore Institute ofSurveyors and Valuers, togetherwith the Government ofSingapore has started toaddress this issue with thedevelopment of a Code ofPractice for Classification ofConstruction Cost Information(Singapore StandardCP80:1999), it comprises anelemental classification, a worksection classification, and amapping dictionary for elementsand work sections.

The Australian Institute ofQuantity Surveyors has beenworking towards an integratedcost data structure for about tenyears. To date it has developedclassifications for elementalestimating, sustainability, life

cycle costing and feasibilityanalysis (The Australian CostManagement Manual). Thedevelopment of a revisedstandard method ofmeasurement has stalled.

A new, more relevantmethod is unlikely to bedeveloped in the near future.Some recognition has beengiven to integrating data and tothe definition of electronicmeasurement standards, butthis area has not gained anymomentum to date. None of thishas been promulgated as anintegrated business processstandard within the constructionindustry.

To my knowledge thereare no other integrated nationalinternational standards fordefining construction data at anoperational level, that allow datanot only to be exchanged, but tobe meaningfully manipulatedand used to add value to theconstruction and facilitiesmanagement processes. This isthe end game and it is someway off.

As with IT standards, datadefinition standards are lessimportant in closed, singlesystem environments in theshort term, but to succeed innational and internationalenvironments, these standardswill be essential.

I propose that quantitysurveyors, world wide, will berequired to develop standards

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and methodologies for the integrated definition of cost data that will include standards for electronic measurement and cost definition at object level and the respective rolled-up datafor a range of functional and contractual operations.

The Key Features of Collaborative Systems Collaborative systems, at a relatively simple level, do not require sophisticated data exchange standards, except perhaps for translating CAD and some office productivity data into commonly readable formats. This is because, for the most part, they are single, closed systems that do not require a high degree of interoperability beyond that which alreadyexists. Lack of data standards is not seen as a serious impediment in the short term, since documents are exchanged in 2-D drawing formats and document formats such as .pdf and open document (OpenOffice.org) and Microsoft Office (TM) that are commonplace, typically as attachments to email. However, there are compelling reasons for adopting collaborative systems. The relative importance to clients and users is discussed later, but for now, the advantages are generally recognised as: 24/7 capability The ability to update and access data, either regularly batched or in real time at any time regardless of access to the creators of the information. Improved information exchange, coordination and communications flow. It has long been recognised that informal communications methods (telephone, letter, fax and email) are limited by their informality. They rely on the sender to include all the required information correctly and the recipient to accurately receive and record the same information and act appropriately, in sufficient time to maintain the program. Structured systems, driven by workflow analysis, assist these

communications to ensure that they include all the required information in both (or all) directions, and that they are delivered and responded to at the appropriate time. Time saving. Collaborative systems allow for significant time savings, because they allow many parties to access and act on the same information at the same time, thereby significantly compressing the time between an idea or an instruction and its implementation. Informed decision making. For the first time, complex decisions, such as design decisions may be made with full knowledge of the implications, because of the ability to disseminate information to and receive responses from many sources at one time. The implications of a typical design decision may now include functionality, aesthetics, capital cost, availability, life cost, embodied energy, energy rating, maintenance, and more. In the near past, decisions of this nature were made on one or two criteria at most, with the rest being either intuitional or not considered at all. Timely forecasting.Project decisions are always made within a constrained time frame. Real-time (or near real-time) recorded data allows informed decisions to be made within tight time frames, thereby allowing more and better analysis and decision-making capability. Reduced risk. Because of the ready availability of accurate data, risks may be identified and managed at the earliest time. Design, cost, time and scope risks are significantly reduced by readily accessible early-warning systems. Real-time construction information leads to significant reductions in errors and re-work that result from the use of superseded information. Reduced capital costs.Using structured systems; cost

management processes can be iterative, allowing designers much more freedom to explore design and selection options. Collaborative systems also reduce variations by delivering accurate design information to relevant parties in real-time. Reduced life costs. For the first time, apart from intuitive and fairly gross judgements, we have the ability to design for the expected life of facilities. Equally clients may make capital cost decisions with the knowledge of the cost effect of their decisions over time. Increased construction process efficiency. Very significant savings are available (either now or in the near future) right across the supply chain, from the manufacture of components, through design, construction and operation) from improving processes as a result of accurate timely information and management.Collaborative systems generate efficiencies in supply, manufacturing, design, documentation, construction and operational activities. Full management oversight Management at all levels is more comfortable and more informed to make timely decisions for designers and contractors. Project management process monitoring and management.Superintendents, supervisors, project managers and construction manager can, for the first time, manage effectively on the basis of real-time information. Delays, cost changes and other damaging risks are identified quickly and automatically and may be dealt with as they occur, avoiding compounding problems that overwhelm management and projects.

Types of Collaborative Systems Collaborative technologies have developed in three models, server / client systems, peer-to-peer systems and application service provider (ASP) systems.

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closed systems are: - Theiravailability and data integrity relyon the reliability and security ofthe servers on which they reside.They are very expensive tomaintain and upgrade. As a resultit is likely that they tend to delaythe introduction of newtechnologies and upgrades.

Project data is owned andcontrolled by the owner of thesystem. Clients may become tiedto and reliant on particular serviceproviders for future information,including information for disputeresolution and litigation,operational data and othervaluable information. Cost ofproject implementation is high.Clients, consultants andsubcontractors must learn tooperate multiple corporate

Server / client systems were thefirst to appear in the market. Aproprietary (often corporate)system resides on a privateserver, usually at the premises ofthe service provider.

Other project participants,including suppliers andsubcontractors, clients, designersand management consultants aregiven limited access to the systemfor the duration of the project.These systems are usuallyprovided by a software vendor,are written in-house or are acombination of vendor systems,modified for the client's particularrequirements.

These systems are popularwith large contractors becausethey can modify the systems to

suit their corporate downstreampurchasing processes and theinformation that they choose toprovide to clients and clientsrepresentatives. They have alsobecome a powerful marketingtool, allowing contractors tocontrol project information andto offer design and managementservices.

The advantages ofclosed server / client systemsare: - hey may be modified andmanipulated to suit the purposesof the owner of the system.Closed systems can operateeffectively outside a standards-compliant environment,therefore they can be readilyadapted and modified at will toparticular project circumstancesand corporate whim.

The disadvantages ofServer / client systems

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systems. Peer-to-peer systems Peer-to-peer file transfer and file sharing systems developed on the back of music-sharing technologies such as the ill-fated Napster and Kazaa systems. Systems such as Groove Virtual Office are typical of peer-to-peer (P2P) collaborative systems. P2P uses internet connectivity, requiring licenced file sharing software that allows each connected PC on a distributed wide area network to directly share particular files with other registered computers on the network. The power of well developed P2P networks should not be understated and this is demonstrated by the use of such systems by the US Department of State, International Red Cross, Boeing and Dell Computers. The advantages of P2P networks are: Flexibility.Members may share as much or as little information as they wish, or as agreed. P2P systems are inexpensive and operate on any PC connected to the internet. P2P introduces some discipline to communications. ("We view Groove as more effective than email for teams working on projects. There's a lot of interaction among project teams in New York, London, and elsewhere. Groove brings a lot of disparate project information into one place."-- Mandeep Singh Narula, Reuters Strategy Innovation Group. As with many collaborative systems, users are encouraged to add tools that they have developed. This cooperation aids rapid development of practical applications in the P2P environment. Disadvantages are: Networks are based on the voluntary sharing of information. Systems are unstructured. They do not provide for the depth of auditing or management reporting that structured systems offer. Application Service Provider (ASP) systems ASP systems are similar to proprietary server / client systems, in that they use a central server

with client (user) computers connected via secure internet connectivity. Typically ASP's operate with many clients (as opposed to single clients with proprietary systems) each of which can have many jobs. These systems are becoming more popular with large clients for a number of reasons. In particular they give clients the ability to retain all their own corporate facility management knowledge in a single system environment whilst working with many contractors and consultants. ASP vendors are more likely to invest in research and development, secure servers and software upgrades than other systems. Typically, all ASP clients share in software upgrades and the experience and requirements of other clients. Advantages of ASP systems are: Flexibility to maintain corporate knowledge and work with multiple vendors.The ability to amalgamate corporate facility data for portfolio management purposes. Access to secure data servers and backup servers. Access to high bandwidth pipelines. Access to regular software upgrades and developments. Reducing learning / training curve for contractors and consultants with generic systems used by multiple clients. Disadvantages are: Theinability to own the system. Licence fees must be maintained over time. The perception that the system is less secure because it is not physically located with the client's business.

Systems in Europe In my opinion, research into construction processes in Australia began to fall behind work being undertaken in the UK in the late 1990s, as it became confused with collaborative Clients Driving Innovation: (alliance) contracting amongst

researchers and vested interests (contractors and consultant/advisers and client bodies). As a result of this misdirected energy, we may have fallen behind in the adoption of collaborative systems in Australia. In 2006, BIW, Britains biggest PCS vendor turned over nearly $11.5 million in sales an four of five of the major vendors have demonstrated strong growth since 2003. In Australia, by comparison, PCS is seen by many as an infant technology. Many clients surveyed still regards it as novel or of little interest. Committed users struggle to get traction with their clients and supply chain. In a recent survey conducted by the Facility Management Association and Australian vendor Aconex, it was found that: * Only 25% of respondents can find the information they require within 10 minutes * 70% have worked from out-of-date data * A quarter of people regularly reproduce information because they cannot find it * Up to a third of organisations have suffered financial loss due to missed deadlines on lease renewals/agreements or service contracts * Only 7% can find all the information owned by their predecessor * 55% of all information a facilities manager uses is from the design and construction phases, yet 44% of facility managers stated that little of this information was available to them at handover * When asked: How useful would it be to capture documents and correspondence into a central archive from the start of the design and construction phases of a project? 98% said it would beuseful' or extremely useful'. However, the research indicates there is still a large gap between what FM professionals need, and their current information management practices. Sadly, "Email, phone and fax are still the most common

,

"

"

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Overall Findings50% of the initial respondents hadno experience with or exposure tocollaboration technologies. Theserespondents did not complete thesurvey past the first question,though they contributed animportant statistic. This questionwas not taken in the UK and itsrespondents were selectivelyqualified.

The result indicates that,whilst collaboration technologieswere slow to take off in Australia,they are being quickly taken up oncommercial projects. Althoughthere is still plenty of room in themarketplace, the absorption ratein the past few years has beengood, considering the anecdotalevidence in the past two years.

UK: 74% of constructionclients increasingly favourcontractors with experience ofusing web-based collaborationsystems.

AUS: 100% of clientssurveyed either prefer or insist oncontractors or consultants whoare experienced with collaborationtechnologies.

UK: 96% of thoseinterviewed said they hadexperienced benefits from usingcollaboration technologies.Several advantages were seen assubstantial by over 80% of usersincluding: round-the-clock online

availability of documents,drawings and other projectdata

methods of communication withexternal parties".

In this paper, I attempt todraw some conclusions as to therelative position of Australia withrespect to the adoption ofcollaborative Project Collaboration(PCS) systems today.

In 2005/6 the Network forConstruction CollaborationTechnology Providers (NCCTP) inthe UK commissionedindependent research to conducta survey of customer experiencesand opinions as to the benefits ofcollaborative systems.

The aim of the study was toprovide a measure of the benefitsidentified by people with first-handexperience of using collaborationtechnology of live projects. Thesurvey sample includedapproximately 45% contractorsand sub-contractors, 30%designers, 13% quantitysurveyors and 13% clients.

I have compared the resultsof this research with privateresearch from a sample ofrespondents in Australia, beingrepresentatives of majorAustralian clients and nationalcontractors and consultants, inorder to determine the state ofadoption and acceptance ofcollaborative project Collaborationsystems in Australia. 302responses to a questionnairewere received, of which 32 areclients, 84 are contractors orsubcontractors and 160 areconsultants. Geographically, there

is a reasonable spread ofrespondents from the states ofAustralia. New South Wales andQueensland are wellrepresented, followed byVictoria, WA and SouthAustralia.

Surprisingly there are anumber of responses from theMiddle East, specifically Dubai,which has attracted professionalstaff from around the world,including Australia. Perhapsthese responses indicate anenthusiasm for and experiencewith collaborative systems in thebooming Dubai constructionindustry.

Over 50% of respondentshave personal experience usingcollaborative systems, witharound 50 regular users. (over 5projects). Respondents with noexperience of collaborativesystems did not continue withthe survey questions, leavingapproximately 170 qualifiedrespondents. This isconsiderably larger sample thanthe British sample ofapproximately 200, as aproportion of population.

It was noted by somerespondents that responseswould be likely to vary widely,depending on the brand ofsystem being considered,because of the significantvariations in functionality,usability and support of differentsystems.

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holding all project data in asingle central repository

reduced expenditure oncouriers or post

less chance of losing importantdocuments or drawings

improved audit trailAUS: 93.5% of those

interviewed said they hadexperienced benefits from usingcollaboration technologies.Several advantages were seen assubstantial by between 30 and40% of users including: round-the-clock online

availability of documents,drawings and other projectdata

documents more complete athandover

costs less to maintaindocuments

The indications are that,once experienced, clients areenthusiastic about PCS for theirprojects. A very high proportion ofrespondents see substantial orsignificant benefits. This appearsto be a common theme in both theUK and Australia. Interestingly,24/7 access to information ratedas the most significant benefit inboth surveys.

UK: 60% - want to use thetechnologies on most or all futureprojects.

AUS: 43% want to use thetechnology again on futureprojects, though another 36% arequite likely to want to usecollaboration.

This result is lower thanwould be expected, given theenthusiasm of clients for PCSsystems, once they haveexperienced them. Perhaps theresponse indicates a slightdisconnect between theconsultants and contractorsmanaging and using systemsand clients taking advantage ofthe benefits of reporting andaudit control.

Consultants andcontractors should be aware ofclient perceptions in this respect,perhaps proposing adoptingPCS systems to clients for mostor all reasonable sized projects.

Satisfaction with theTechnology

UK: 90% are highly ormoderately satisfied with thereliability, speed, ease of use,learning curve and functionalityof systems in the market.

AUS: 90% are satisfiedwith the learning curve, 75 85% are satisfied with speed,functionality and ease of use ofavailable systems.

Overall satisfaction levelsare slightly lower in Australia.perhaps this is due to thevarying capability and usabilityof the systems on offer, sincethis was noted by someexperienced respondents.

Likelihood ofRecommendation

UK: 89% are likely to

recommend the use of PCSsystems. 31% will definitelyrecommend PCS systems.

AUS: 76% are likely torecommend the use of PCSsystems. 18% will definitelyrecommend PCS systems.

This result indicates a morecautious approach to adoptingnew technologies, a surprise forAustralia, which is known as anearly adopter of new technology,although not surprising for theconstruction industry, which isrooted in tradition and slow tochange.

Likelihood of Using AgainUK: 89% will use PCS

again.AUS: 79% will use PCS

again. QS/Project Managers andContractors are committed to theuse of their systems. Clientsaccept the PCS is part of thelandscape and will use it ifoffered. Clients have little interestin adopting their own systems.

The major StateGovernment (Qld) design /management service provider isdeveloping an in-house system,but it is some way off.

Subcontractors anddesigners will use PCS as theyare required to. Subcontractors, inparticular, worry about the need tolearn multiple systems.

Perception of OverallPerformance

UK: 88% rate performance

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as good to excellent.AUS: 75% rate

performance as good to excellent,but it is noted this responsedepends on the system offered.

Overall AttitudeUK: 60% prefer or would

like to use on most projects. 30%find it useful on the right projects.

AUS: 41% prefer or wouldlike to use on most projects. 45%find it useful on the right projects.Depth of Commitment

UK: 98% range fromsatisfied to loyal advocates.

AUS: 41% of respondentsare moderate to loyal advocates.QS/Project Managers andContractors are more committed,but express disappointment withclient response.

Enthusiastic RespondentsUK: 62% QS; 59% Clients;

58% Contractors; 51% Designers;39% Sub-contractors.

AUS: 85% of respondentsare consultants or contractors.Most are moderately satisfied tovery satisfied with the technologyand would recommend it for futureuse. Those clients who haveexperience with collaborationssystems are devotees, with 100%insisting on or preferring

consultants and contractors withPCS experience. The problemappears to be converting clientswho have not experiencedcollaboration systems.

An overall positiveattitude, commitment to PCSand enthusiasm to embracecollaboration systems inAustralia is low compared to theUK. This is in contrast to clientperceptions and userperceptions of the benefits.

Design Process BenefitsUK: 88% agree that

reasonable or substantialbenefits arise from improvedcommunications. Moderatebenefits were noted for fasterdesigns and revisions andreduced design costs.

AUS: 88% agree thatsubstantial or significant benefitsarise from improvedcommunications, with 44% citingsavings in re-work as a majoradvantage. Across the boarddesign advantages significantenough to invite generalinvestment are thought to besome way off.

Drawing Approval TimesUK: Drawing approval

times improved by 26%AUS: The significant

response suggests that drawingapproval cycle improved from 6-9 days to 3-5 days. This is asignificant improvement inapproval times, averagingaround a 4550% improvement.This would have a significantimpact on workflow throughout aproject. Surprisingly, onerespondent has experienceddecay in performance withonline collaboration.

Traceability andAccountability

UK: 93% agree that thereis a better audit trail and betteraccountability; though only 68%agree there is less risk ofdisputes. All sectors regardbetter audit trail highly. Nextranked is version control,followed by faster review/ sign-off of documents.

AUS: 88% agree thattraceability and accountability arethe major advantage, with versioncontrol and audit trail pollingstrongly. Surprisingly, only 37%agree that these improvementslead to less disputes. Consultantsand contractors had a strongerview of this issue, though notconsidered as an advantage byclients.

This is most likely a resultof the predominance ofcontractor-controlled systemswhere the audit trail is not readilyavailable to clients. many clientsare not addressing better processand accountability within their ownorganisations or their projectteams.

Faster communications isseen as an advantage by allsectors. 60% believe there isimprovement with design changeturnaround, consistent withdrawing turnaround. 75% believethat design costs are reduced.

Project Management,Communications, Teamwork

UK: Key benefits arecentralised project information85%; Cost savings on couriersand posting 83%; bettercollaboration amongst distributedteams 68%.

AUS: As with the UK, 83%rate centralised projectinformation highly. Time and costsavings, better communications,better internationalcommunications, betterintegration of geographically.

Even so, bettercollaboration of distributed teamsis not as well regarded asphysically centrally located teams.Old habits die hard. Perhaps thestrong response to betterinternational communications hascome from branch or projectoffices in Dubai, Chennai andother international respondents.

Document management,Storage and Retrieval

UK: Key benefits are lesschance of losing importantdocuments 82%; Secureinformation 75%; cheaperdistribution and production costs

PROJECT DELIVERY


74%.AUS: 90% regarded

savings in physical storage spacehighly. Better version control andless loss of documents, searchingand finding documents, documentproduction and storage costs allrate well.

Handover, Commissioning andOperations

UK: Key benefits are 24/7access to documents; provides auseable archive of facilitiesmanagement data 65%; cheaperto maintain and amenddocuments 60%

AUS: Key benefits, ratingbetter than 60% include 24/7access, reduced cost to maintaindocuments, better archive data,better access to operationsmanuals and equipment, faster.

Clients appear to beaddressing integrating capitalinvestment data and operations/maintenance systems, with strongresponses from clients in relationto better access to facilitymanagement data (87%), Moreaccessible operations andmaintenance data (67%), and amore useable archive forworkplace health and safety(60%). This is a significant changefrom recent anecdotal evidencethat clients believed PCS is ofmore benefit to contractors andconsultants.

Client ViewsUK: Clients are strongly

attracted to the level of controloffered. 75% of clients givepreference to contractors withcollaborative systems. 67% ofclients would exclude contractorsunwilling to use PCS systems.

AUS: Clients who haveexperienced collaborativesystems are very enthusiasticabout their use. 100% would givepreference to or insist oncontractors and consultants whoare experienced users. 63%believe it offers much bettercontrol over projects.Consultants and ContractorsViews

UK: Clients are demanding

PCS 81%; better control 68%;competitive edge 68%.

AUS: 57% of contractorsconsider they have better projectcontrol. 50% note that anincreasing number of largerclients are insisting oncollaboration systems for theirprojects. 17 % say that it givesthem a competitive edge andthat clients are prepared to paya premium for the extra service.

Key Barriers to AdoptionUK: Getting team

commitment to fully use thetechnology 73%; some systemprocesses are time consuming73%; time and cost of set-upand training 67%; trainingrequirements for multiplesystems 67%; easiercommunication results in morechanges 60%.

AUS: 60% of respondentsagree that getting teamcommitment to full use of thetechnology is the major problem.43% feel it's just another meansof communication to come togrips with. Time-consumingsystem processes is a problemfor 49% of respondents. Otherissues that rate highly are poorIT literacy in the industry (37%),the cost of initial investment(38%), difficult drawing mark-upprocesses (33%), creates morework (32%), training on multiplesystems (29%).

ConclusionsApproximately 50% of thosesurveyed had no experiencewith and no exposure tocollaborative systems at all.

Given that therespondents are all or mostlypeople who work in high-valuecommercial and governmentwork, it is safe to suggest theexposure to and experience withcollaborative systems hasgained enormous traction acrossthe construction industry inAustralia, but there is still quite along way to go before PCStechnologies are as all-pervasive as email and fax.

Clients who have had noexposure to collaborative

John Lowry presentedthis paper at ClientsDr iv ing Innovat ion:B e n e f i t i n g f r o mInnovation (12-14 March2008) the thirdInternational Conferenceof the CooperativeResearch Centre (CRC) forConstruction Innovation

systems are ambivalent aboutimplementing them, but havingexperienced or used them, theybecome strong advocates. This isan excellent sign, since itindicates that the benefits of PCSare clearly evident to clients.

From previous anecdotalevidence to now, there appears tohave been a significant shift inAustralia towards the acceptanceand adoption of projectcollaboration systems. Theoverall satisfaction with PCS issimilar and the benefits areperceived to be similar. Thegeneral enthusiasm for adoptingand promoting PCS is lower inAustralia, except for clients,whose enthusiasm is higher.

Consultants andcontractors should be aware of apossible disconnect between theirown and their clients' perceptionsin this regard. Clients are alsoclearly aware of the benefit ofPCS for facility managementpurposes. Consultants andcontractors can take advantage ofthis shift of thinking amongstclients, who, in casual surveysjust one year ago were ambivalenttowards PCS systems.

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LEGAL NOTES


KIM LOVEGROVE and NINAMCLAUGHLIN write that the civilliability of Building Surveyors is anevolving field with the jurisprudencedeveloping in VCAT. It hasestablished a wider responsibilityowed by Building Surveyors toowners and others than maypreviously have been envisaged uponthe privatisation of the profession.

Under the Building Act 1993 (Vic) only anatural person may apply to be a registeredbuilding practitioner.

As you may know a Building SurveyorCompany is joint and severally liable for theacts or omissions of a person registered as aBuilding Surveyor, employed by thecompany, and can be brought into aproceeding as a second defendant.

However a person registered as aBuilding Surveyor and a Building SurveyorCompany are also liable for the failure ofbuilding inspectors they sub-contract toproperly conduct inspections of buildingwork.

The seminal case in this area is theVCAT decision Toomey v Scolaros ConcreteConstructions Pty Ltd (In Liquidation) andOthers subsequently upheld by the Court ofAppeal of the Supreme Court of Victoria. Thecase concerned the liability for the personalinjury to a man who whilst drunk fell off abalustrade that was constructed lower thanthe BCA required height.

The Building Surveyor Company,Building Surveyor and the Building Inspectorwere all defendants in the proceedings alongwith the Builder, Project Manager, Architectand two of the mans friends who wereskylarking with him at the time of theaccident. All defendants were held liable andeach was apportioned a percentage of theplaintiffs damages according to section 24 ofthe Wrongs Act 1958.The Court determined the duty owed by theBuilding Surveyor was a nondelegable oneand as such the duty under the Building Actand Regulations could not be delegated to abuilding inspector.

Duty to Whom owner andsubsequent ownerBuilding Surveyors have been found to beliable to owners not only under their contractof engagement with the client but also byowing a duty of care to the owner.

However the law has moved further, in2003 a VCAT case Taitapanui v HIAInsurances Services Pty Ltd decided a

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