construct_four_2018_web.pdf - australian institute of building

mcCONSTRUCT MAGAZINE

ISSUE FOUR 2018

2018 National Professional Excellence in Building Awards Quick Ten with National President David Burnell “Toxic masculinity” blamed for New Zealand’s High Construction Suicide Rate

mc 1The Australian Institute of Building

Contents04 A message from the President

06 CEO’s column

10 2018 National Professional Excellence in Building Awards

11 Congratulations to the 2018 Building Professionals of the Year

12 A Quick Ten for Construct

14 Q & A With Steve McBurney

16 Beacon Foundation makes its connections between educators and industry

17 A private consortium has put forward a plan for a rail link to Melbourne airport, a US$10.8bn scheme that was approved by Canberra in April of this year

20 Heads Up creates ‘mock’ job application to drive workplace mental health action

22 Lean this Way for Improved Project Outcomes

25 “Toxic masculinity” blamed for New Zealand’s high construction suicide rate

An introduction to the Australian Institute of BuildingThe Australian Institute of Building (AIB) is incorporated by Royal Charter and is the preeminent professional body for building professionals in Australia and the Asia-Pacific region. The AIB has a long and proud history of supporting and serving the building profession. For more than sixty years the Institute has worked with the building and construction industry, government, universities and allied stakeholders to promote the building profession, support the development of university courses in building whilst promoting the use of innovative building techniques and a best-practice regulatory environment.

PO Box 705 Jamison ACT 2601Email: [email protected]: +61 (0)2 6253 1100Website: aib.org.au

is published by The Australian Institute of Building

The magazine is produced by Ontime Publications. For advertising rates please contact Steve Moxey on 0400 473 200

The AIB is proudly supported by:

mc26 SOPA Claims: How to secure your payment

28 One of the Best Industries in Australia

30 Research funded by the European Union’s Horizon 2020 has foundthatfibresfromvegetablescanstrengthenconcrete

30 Living on Mars: NASA reveals winners of BIM design competition

31 The University of Maine has unveiled a system for building highway bridges in just 72 hours

32 The 42nd AUBEA Conference in Singapore, 26-28 September 2018 was opened by Professor Josua Pienaa

34 Researchers say India could alleviate its growing shortage of sand, which is needed for concrete, by partially replacing it with waste plastic

34 Nothing succeeds like excess: Dubai plans world’s largest mall

34 Yale University and UN design tiny, sustainable house

CONSTRUCT MAGAZINEISSUE FOUR 2018

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Well the first three weeks in the chair have certainly proved to be a busy time. My thanks to Paul Heather AM FAIB for managing the smooth transition into office, and the National office staff have certainly been very efficient in assisting me to get to know more about our full range of activities. The most recent National Council has already developed the current strategic plan and our recent annual report outlines the successes for our 2017 / 2018 calendar year.

AIB Highlights as reported include:

Close to 100 separate Chapter events in the last 12 months;

1200 attendees at our Professional Excellence Awards dinners around the country;

5% overall membership growth including students;

Course Accreditation work continuing with four new Masters courses added, bringing the total to 18 courses now holding AIB accreditation across the country;

Strong and regular liaison with external industry stakeholders including State Regulators and Federal Ministers;

We also recorded a modest financial surplus on operations for the year.

While the work of National Council for the next 12 months will continue in line with the recent Mission and Pillars framework, we are already well advanced

with the planning for the Constructing our World Conference which will be a highlight of the 2019 AIB Calendar. Keep an eye out for the early bird ticket pricing.

You will also see the nominations opening soon for our 2019 Professional Excellence Awards program. We are currently refreshing the submission formats and hope to further streamline the entry process to make it easy for all entrants to lodge their project details on-line. So I encourage you to start planning to collect the necessary project records and engage with your project clients now around the clear promotional benefits that follow winners of our AIB awards. Your company can clearly leverage your success as a winner in promoting to existing and future clients.

The end of the year is fast approaching, and by now you will have seen the AIB events calendar filling up, so make sure you take advantage of our CPD events, site visits, industry breakfasts and Christmas social gatherings by making contact with your local Chapter.

The AIB still has a significant role for all building professionals; to both maintain and grow their professional network, so that they can offer the best outcome for all project stakeholders. Our AIB network is the platform that allows industry leaders and specialists to share and mentor back to the wider industry through involvement with the Institute at a Chapter level around the country.

The AIB has for over 50 years provided a standard consistently through membership entry that recognises individuals by academic achievement, practical industry experience and commitment to continuous learning. Our AIB ‘Chartered Building Professionals’ were the original benchmark long before States recognised an important need for ‘licencing of builders.’

If you are not currently an AIB member, I would encourage you to strongly consider joining the AIB, as it provides you with professional recognition as an individual. Your AIB status then moves with you throughout your career, and defines your commitment to professional conduct and practice at whatever level you participate within our vibrant Building community.

Enjoy a safe and happy Christmas break for 2018 and I look forward to meeting with you at a future AIB event.

David Burnell FAIB

A message from the president

BY DAVID BURNELL, FAIB National President, Australian Institute of Building

WelcometothefinaleditionofConstructfor2018.IamDavidBurnellandforthosewhodon’tyetknowme,in September 2018 I was privileged to be elected as National President of the Australian Institute of Building, in this our 67th year of operations.

BY DAVID BURNELL, FAIB National President, Australian Institute of Building

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Through his presentation, Ian drew the audience’s attention to several realities plaguing the industry and which will continue to until there is a change in the way companies run their operations. In particular, he drew attention to:

The fact that in the last decade the construction industry has accounted for between one-fifth and one-quarter of all insolvencies in Australia, a disproportionately high statistic relative to its share of national output;

The need to improve education for the next generation entering the construction workforce, highlighting the increased need for greater emphasis on management and financial knowledge;

Examples where inadequate financial control had led to the insolvency of companies that appeared on the surface to be thriving;

The need for companies to embrace change, with a focus on improving management systems, streamlining reporting processes and upskilling their workforces.

In closing, Ian emphasised that whilst implementing and then using technology well will be “a strong risk mitigator and aid to project success, we must note it is not a panacea, but rather is a ‘framework’ for a business to learn from so it can grow and improve. Technology is just one part of a puzzle the industry requires education and adoption of stronger fiscal management in all businesses which in turn will go a long way to alleviating a huge strain on the country, the industry and ripple effect to everyday Australians.”

Our thanks to Viewpoint for this information.

With just over a month to Christmas (is that possible!) – can I take this opportunity to wish our members and the myriad of other stakeholders we have a peaceful Christmas with friends and family. Take the opportunity to put your feet up over the break as I am sure 2019 will again throw us a variety of challenges – many of which the AIB looks forward to facing head on.

Regards,

Greg Hughes

You may have attended a recent seminar where Ian Desbrow Viewpoint’s Managing Director, ANZ uncovered some harsh truths which for too long the construction sector as a whole has ignored. In his speech he focused on the fact that far too many businesses involved in construction – be they the asset owner, head or sub-contractors – lack integrated project systems and /or skills which allow them tostayontopoftheirfinancialsituation.

CEO’s columnBY GREG HUGHES CEO, Australian Institute of Building

“TECHNOLOGY IS JUST ONE PART OF A

PUZZLE THE INDUSTRY REQUIRES EDUCATION

AND ADOPTION OF STRONGER FISCAL

MANAGEMENT IN ALL BUSINESSES”


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INDUSTRY NEWS

2018 National Professional Excellence in Building Awards

The National Professional Excellence in Building Awards for 2018 were held at the National Arboretum in Canberra, on the 7 September. Guests heard how the judging panel was seriously impressed with the quality of the winning works from previous state and territory Awards programs.

National Jury Chair, Peter Henden said “the line - up this year was an eclectic collection of projects from all corners of Australia that embraced the best the technics and talent available to the construction industry”

“It is refreshing to see the construction professional using tools such as BIM to great effect on a number of projects as well as a vast array of information software to ensure the end project is the best it can be” said Peter.

The jury went on to say that this year the environment was a strong theme that cut

through all projects from re-cycling of waste materials to power generation and water reticulation. The strong message here was reduce, reuse and recycle.

Outgoing National President, Paul Heather commented saying “even in my two years as President, I have seen a change for the better in the quality and environmental considerations that continue to be delivered to both the client and the community. It is a true testament to our professionals and the way they not only solve at times not insignificant issues, but to how teams of people look ahead to future generations”

Guests with the beloved Dulux Dog Strings on Fire


Congratulations to the 2018 Building

Professionals of the Year

YI ZHANG - HONG KONG CHILDREN’S HOSPITAL – CHINA STATE – SHUI ON JOINT VENTURE

EDDIE GANGEMI - HUTCHINSON BUILDERS PTY LTD - NEWSTEAD CENTRAL STAGE 2 & 3

The management of the design and construction of the Hong Kong Children’s Hospital by the Shui–On Joint Venture was outstanding and a clear winning entry. The development encompassed an overall area of

approximately 20,000 m² on level ground at the site of the former Kai Tak Airport.

The project is the first hospital in Hong Kong dedicated to family and child-centred tertiary care for children with serious and life-threatening illnesses both locally and overseas. The hospital will not only be patient centred but also education and research facilitating.

Complexity for the project arose not only from the site abutting the future waterfront promenade fronting the Kai Tak Approach Channel; it also included two tower blocks linked by three link-bridges with approximately 51m clear spans.

With a total construction period of approximately 50 months, the project team faced not only the usual budget and time

constraints but also skilled labour shortages and challenging ground conditions at the reclaimed site. The team led by Zhang Yi managed to communicate effectively with a very broad range of stakeholders to produce an innovative design, which included environmental sustainability options and technical building quality able to support future innovations in medical equipment and its operation at the hospital.

The project also demonstrated professional project management and innovation in keeping abreast of the build in terms of quality and progress.

Overall, the judges were extremely impressed by the professionalism demonstrated with this project by the Shui-On Joint Venture team.

This joint winning entry demonstrated outstanding attention to providing the best possible value to the client through the proposal of innovative design and construction methods to save money and optimize the build for the return to the client. Eddie Gangemi’s team from Hutchinson Builders provided a service which impressed the judging panel by its clear focus on delivering the best possible project for the client.

Newstead Central is a multi-stage residential development in the heart of vibrant inner Brisbane precinct of Newstead which is currently experiencing unprecedented major urban renewal. The concurrent and fast-track construction of stages two (St. Tropez) and three (Laguna) are now completed, both achieving an early practical completion.

The interlinked top-down proposal to commence construction whilst

simultaneously performing ‘mining’ works to excavate the basement levels was the catalyst of providing early settlements to the client and ultimate award of the project to Hutchinson. Other value engineering advantages included re-designing the foundations of the basements and allowing the creation of additional residential units without altering the gross building area (GBA), whereby Hutchinson were able to save money for the Client.

Not only did they offer considerable innovation in their approaches, the team faced and overcame a series of challenges including the site ground conditions; the need to decontaminate the site due to its previous uses; traffic difficulties with the landing of materials at the site; and other site logistics and construction compexity related to the goal to handover one of the towers complete to the client early and prior to

completion of the second.

What made this a clear joint winning entry was the very professional and innovative approach to the management of construction issues and the high level of excellence demonstrated by the team led by Eddie Gangemi in exceeding the client’s goals.

Written by Robyn Hardy

Strings on Fire


A Quick Ten for Construct

1. What inspired you to begin a career in the construction industry?

I grew up around domestic construction with my father running his own business constructing bespoke and architect designed houses. Many weekends and holidays were spent on the dumpy level surveying a vacant block or helping to frame a new building or pitch a traditional hand cut roof. The work was outdoors, and the sense of achieving something each day was clearly demonstrated when a two week school holiday break allowed me to see the transformation of a new slab on ground to a framed structure with roof sheeting installed.

2. What is the best thing about your job?

I am fortunate that my early career transitioned from trade learning as a carpenter into an office based role. The training I have received on the job has continued to challenge me to learn new skills and then teach others. In the late 90’s I was helping my employer develop computer based building administration software as we transitioned from triplicate books as a way managing contracts with clients and sub-contractors to integrated computer administration that gave real time financial and forecasting information. When I changed companies after nearly 20 years, I was already prepared to bring this type of learning about the fundamentals of practical systems and efficient management to other business’s to help them grow. I am fortunate that this experience is of interest and value wherever I am working.

3. What is the current project that you are working on?

Nowadays my work involves managing multiple site and clients, and mentoring the graduates and younger team members at Johnstaff. I am also working on parts of a systems transition project for the company; while still managing the specialist construction projects that we tackle in Melbourne.

I am currently working on financial close for the 401 Collins St project which started as a ($2.5M) façade repair but extended to a lift upgrade package then, an extension to run the lifts an extra floor to the roof then, a rear façade restoration and a cold shell upgrade ready for a new office fitout with a final cost of $12.2M. I also currently have a Regional Magistrates’ Court refurbishment in Morwell, a Rehabilitation Hospital upgrade in Frankston, a University library storage fitout / extension in Bundoora and I am still training construction staff on our existing contract administration system.

4. How do you see your career progressing from this point?

At this point my career is focused on fitting into more areas that need specialist or technical advice and input. I am challenged regularly to adapt my construction and administration experience to help solve problems for our clients and construction teams.

5. Why did you join the Australian Institute of Building?

I have known about and participated in AIB events since 1989, and the AIB awards programs since 1997. I was always encouraged to appreciate the exchange of knowledge, and my early career mentors were AIB members who clearly demonstrated professional building practice in all of their activities, both inside and outside of the work environment. After 20+ years, having transitioned from a trade entry level to a senior project manager

role in the same company, I felt it was time to contribute back to the industry in a meaningful way.

I also wanted to establish a level of peer recognition that was portable, and moved with any future employment. Unlike most of the other PM’s I have worked with, I had only ever had two employers in my first 25 years in the industry, and by then I had collected 9 state and national building awards from the AIB and the MBA for my work as a team leader.

6. What is the most rewarding aspect of your AIB membership?

When I first started as an attendee, I soon wanted to show off some of the specialist solutions and building techniques that were being used by my employer. This led to me joining the Victorian Chapter committee in 2010 and becoming an active promoter of the work of the AIB.

Since joining the AIB, I can now look back over the last 10 years and see all of the graduates and students who started a conversation with me about what

Each edition, Construct Magazine features a snapshot ofasignificantcontributortothebuilding and construction sector.This edition, we talk with David Burnell, (National President) based in Melbourne:

“MY EARLY CAREER MENTORS WERE

AIB MEMBERS WHO CLEARLY

DEMONSTRATED PROFESSIONAL

BUILDING PRACTICE IN ALL OF THEIR

ACTIVITIES, BOTH INSIDE AND OUTSIDE

OF THE WORK ENVIRONMENT”

INDUSTRY NEWS


their future career might look like. Those graduates and work colleagues have now become a life-long connection through AIB membership, while their careers have grown in experience and responsibility. I now enjoy the feedback that early AIB contact has helped shape or steady their thinking, and has made them a more capable industry participant. We celebrate these successes and milestones together.

7. Where do you see the building and construction industry in the next ten years?

The industry must embrace the many changes that are coming:

small footprint construction,

economical low waste management,

environmentally friendly,

ethically sourced,

sustainable and renewable

These topics will not remain on the fringe of a project aspirations list as ‘nice to have’ deliverables. Clients will demand these attributes as a key priority before committing funds, and will structure their project contracts to penalise operators who ignore including these bigger community priorities.

We have a near 50 / 50 gender balance coming through the graduate stream at our Universities offering Building and Construction Management (degrees and masters courses) and we will see more female run companies and increasing female representation at board level within existing companies.

The scarcity of trade experience across a wide range of areas will lead to more off-site production systems in an effort to better control quality of finishes for the end product.

Sadly Builders who get into difficulty through poor management practices, low pricing or miscalculating the true cost of work, or continued engagement with clients who deliberately contract without the full financial backing to honour an agreement will see additional building businesses fail. There will be a rise in specialist building contractors capable of undertaking project recovery for distressed projects. Banks will be more likely to step in more often, and at much earlier stages in a project, by relying on these recovery specialists if regular financial reporting shows signs of the project faltering.

8. What would you like to see change in this space?

Governments should lead by example

and stop tendering and contracting for construction work using contracts that attempt to pass all of the project risk to the building contractor with cascading responsibility to include all subcontractors on the project. If these contracts continue to be offered, builders should correctly assess all the non-construction risks and include this in their pricing before commencing work.

Regulators in all jurisdictions should be open and consultative with the key industry groups around the country. We still don’t have a high degree of uniformity of practice and regulation across state boundaries. Security of Payment, Licencing and Registration, managing conforming building products are all examples where gaps in the learning and experience exist around the country. The construction industry employs over 10% of the national workforce and creates 15% of our GDP each year and we still lack a dedicated federal minister or portfolio to head up standardisation of these duplications to reduce costs.

9. Do we need to be more regulated across the sector?

We certainly have a well regulated environment on building sites to undertake the physical construction of buildings. Regulators rarely consult vigorously with the industry to get to the heart of a problem, the endless political cycles, and the short term thinking that only wants a ‘new building to open’ or a new photo opportunity in ‘safety vests and hard hats beside a large excavator’. This political headline mentality does nothing to deal with issues like supporting the creation of a national database of all registered practitioners to assist the public and industry to work with recognised and insured building professionals.

We actually have less coordination in legislative systems around the country when it comes to builders licencing and compliance issues away from site.

10. What advice would you give a student of building and construction as they look to enter the profession?

Start your career network as early as you can. Join the AIB as a student, and get involved in a local Young Builders Alliance group (YBA) in your area. This grows your professional contacts, and your regular engagement helps you meet potential employers much sooner.

Find part-time work associated with building while you study, access to site makes understanding the theory at university easier and you get the chance to ask work colleagues why some processes you study are nothing like what the course teaches.

This is a key to understanding the solution must solve the problem. Sometimes the university example given is not clearly explained as the specific solution for a specific site condition. It is just as rewarding to work with a major subcontractor. Remember no single individual does all the work on a $100M project, so think about being part of a team to help learn which parts of the industry are of interest.

You will learn more soft skills in 6 months part time on-site by osmosis, while overhearing the daily conversations of a senior site manager who is running a busy site. If your job is managing the installation of carpet in 672 apartments, you are just as important to the site team when you get the correct colours installed in the correct apartment.


REPORTS

The ABCC operates in a complex environment. How do you ensure industry is aware of the laws that apply to them?

A major priority for the ABCC is education. We have a statutory function to advise all building participants of their rights and responsibilities. We spend considerable resources on this important function.

In July 2018, we relaunched an app for industry called “ABCC On Site”. The app is available for free from your nearest app store and delivers essential information to your mobile phone or device. It is impractical to expect industry to have access to legislation and documentation on building sites. The app aims to deliver essential information in a practical and user friendly format.

The app covers six key topics: wages and entitlements, coercion, freedom of association, right of entry, unlawful industrial action and unlawful pickets. It enables users to self-select whether they are an employer, employee, site manager or union official. It steps users through scenarios commonly encountered on site and provides them with information and links to assist them in resolving issues that arise on site.

Does the ABCC provide advice and assistance to industry?

This is a key priority for my Agency. We have a hotline number 1800 003 338 and can take enquiries online. When you contact the ABCC, your call will be answered within 60 seconds, you will speak to a real person, and that person is a subject matter expert.

Last financial year, we responded to 6932 enquiries. Over 98 per cent of enquiries are resolved within 24 hours. More than half of

the calls to the ABCC relate to the Code for the Tendering and Performance of Building Work 2016, or the earlier 2013 Building Code.

The Building Codes impose the highest standards of lawful conduct by contractors wanting to tender for Commonwealth-funded building work. As a consistent purchaser of construction work, the Commonwealth provides stable and reliable work, so being code compliant is a prerequisite to accessing Commonwealth projects.

What is the ABCC’s role relating to security of payments?

The ABCC has recently commenced an education campaign to raise awareness of security of payments requirements under the 2016 Building Code. There are two key messages being promoted by the ABCC:

The campaign aims to educate subcontractors on their rights, how they can report payment disputes and delays. The ABCC material emphasises that payments must be timely and non-payment of due and payable claims must be reported to the regulator.

New resources have been published, including security of payment guides for contractors and subcontractors and new website content. These are available at www.abcc.gov.au/securityofpayment.

What progress has the ABCC made in assessing enterprise agreements against the Building Code?

One of our key challenges for the ABCC is assessing enterprise agreements for compliance with the 2016 Code. The Agency conducted 871 agreement assessments in its first 7 months, and 2,872 in the last 12 months. The Agency aims to conduct its assessment within a four week timeframe, and is currently tracking at three weeks.

Does the ABCC only prosecute trade unions for contraventions of the law?

An important part of my Agency’s function is to investigate suspected contraventions of workplace relations laws in the building industry and present appropriate matters before the courts.

In the past financial year, the ABCC was successful in 16 of our 17 cases decided by the courts. This has resulted in penalties of $6m imposed by the Courts with the CFMMEU accounting for $5.6 million.

The ABCC stands ready to investigate and prosecute any building industry participant who breaks the law. Regrettably, the CFMMEU has found itself subject to more penalties than the rest of the industry combined. But I will assist any victim of unlawful conduct. I recently intervened in

QA&With Steve McBurney

Stephen McBurney was appointed ABCC Commissioner on 6 February 2018. Prior to that appointment, Steve occupied an independent statutoryofficeasChiefExaminerfor the State of Victoria. That position involved exercising coercive powers to enable Victoria Police to combat organised crime.Steve has history with the ABCC, having held the position of Assistant Commissioner, Legal from 2005 to 2008. Steve also had a decorated career as an AFLumpirethatsawhimofficiatein 401 games and 4 Grand Finals.


REPORTS

a Queensland case to make submissions in support of the CFMMEU’s right of entry onto a site. Right of entry laws cut both ways, and it is important that the ABCC support both the rights of occupiers to manage their building site, and the right of unions to gain lawful entry to site.

I am committed to enforcing the rule of law. Where participants fail to abide by the rules, the ABCC will not hesitate to act. In April of this year, I successfully applied to the Federal Court in Queensland for an injunction preventing repeated incursions onto site by the CFMMEU in defiance of right of entry laws. This occurred on the Bruce Highway upgrade project at Caloundra. The case is listed for a further hearing in November.

Why has the ABCC sought personal payment orders against individuals?

In a landmark decision both the High Court and Full Federal Court have cleared the way for personal payment orders to be sought against union officials in appropriate cases.

This important precedent makes clear to all union officials that when you break the law you can no longer rely upon union members to pick up the tab. This decision is directed at preventing CFMMEU funds undercutting the sting or burden of the personal penalty.

The importance of personal payments as a deterrent to union officials undertaking unlawful action is perhaps best summed up by the comments of the Full Federal Court when it found:

The history of contravening by the Union, all undertaken through its officials, reflects a willingness to contravene the Act and pay the

penalties as a cost of its approach to industrial relations.

The Court went on to state that a personal payment order will bring home to union officials that they cannot act in contravention of the Act knowing that union funds will always bail them out.

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Stephen McBurney Commissioner of ABCC


REPORTS

The recent Gonski report highlighted the value of industry/partnerships. The report noted the importance of ‘strengthening the development of general capabilities and school-community engagement.”

We are seeing this evidence build, with the Mitchell Institute, at Victoria University, recommending the growth of school-industry partnerships. Mitchell Institute encourages students at a young age to broaden their careers awareness and aspirations. They also note that teachers have to be supported to deliver the curriculum in more enriching and innovative ways.

At Beacon Foundation, the value of industry and school partnerships has been at the heart of what we do. Way back in 1988, three Tasmanians thought this approach made sense and would be a way of stopping the very worrying trend of students heading out the school gate at Year 10 with no opportunities to go for.

Beacon Foundation began with this one idea, and quickly demonstrated the value of industry/education partnerships in supporting young people into work. We also saw how

communities could be brought together to prevent youth unemployment and give young people the opportunities they deserve to have productive working lives.

Thirty years on, and Beacon Foundation has reach into in every Australian State and Territory, with Staff located around the country. Beacon Foundation is based in the belief that every young person has the right to hope, a job, a financial opportunity and the sense of personal success this gives them. This philosophy underpins our overarching vision of reaching, inspiring and connecting Australia’s future workforce.

Last year we inspired 19,000 students to think about their futures; reached 145 schools across Australia, the majority of which are in less advantaged areas; we delivered nearly one thousand activities across our suite of programs; connected 4, 200 industry and business volunteers to students and schools; and supported 2, 200 educators to deliver positive outcomes for their students.

Take for example Rebeka, who while attending school in Queensland, was recently supported to take on a 12-month School-Based Traineeship (SBT) with one of our major partners Origin Energy. Rebeka worked one day a week with Origin’s corporate health, safety and environment team, whilst also completing her Year 11 studies. Unlike traditional work experience, Rebeka is paid an award salary, gains valuable real world skills and is increasing her confidence by making contributions to her workplace.

Rebeka also gained experience in the whole job recruitment process, as she had to apply and be interviewed for the position.

Rebeka said of the opportunity, “this Traineeship has helped me refine and gain skills that are needed and transferrable to my future job …”

The SBT program is run in many States, strengthening Beacon Foundation’s relationship with its partners. It supports students by providing them with the motivation and experience to continue their studies and work towards career goals.

Beacon Foundation makes its connections between educators and industry in many other ways too. Technology allows us to link Volunteer Mentors to small groups of students via video conferencing to take part in a program called MyRoad. During a two-hour session, MyRoad Mentors support students in the development of key skills required to understand and succeed in the changing world of work. Students are exposed to a wide range of jobs through video career stories and can gain advice and information about the working world through their Mentor.

The response to MyRoad has been overwhelmingly positive. In the Financial Year to 2017 84% of students participating in MyRoad said they had learnt new way to think about what kind or job or career could be right for them; 80% said they had increased the resilience and felt better equipped to deal with stress and challenges; and 77% said they felt the program had made then feel more self-confident.

‘Just being able to go through what we want to do in the future. getting the opportunity to check with our mentor about our future jobs. having a chat with an experienced person rather than just a ‘teacher’. Year 11 student, 2018

We also can see Beacon Foundation programs, like MyRoad, having impact for our partners in schools and industry, One teacher, for example, commented

In 2018, the importance of industry/education partnerships isfinallygettingsomeoftheattention it deserves. Evidence tells us that young people need higher levels of education and the right type of education so they can adapt to the changing work order. This includes the right skills for the jobs available; skills that will help navigate more complex careers in a changing world of work; more job seeking and career management insights and more work experience and work networks.

Beacon Foundation makes its connections between educators and industry

Scott Harris Chief Executive of Beacon


“The MyRoad program complements the school program and is engaging. The program allows students to open up to industry mentors, which is something which we cannot do in our usual classroom situation. It was a very positive experience for students that are usually difficult to engage.” Teacher, 2017

Our volunteer mentor from AMP also found

“Volunteering in the MyRoad Program is rewarding and uplifting. Seeing the world through the eyes of a young person helps me understand some of the challenges new people into the workforce face and how you may be able to respond and adapt. It tests your social and digital skills along with communication, time management and leadership in a fun environment.” Volunteer, AMP, August 2017

An initiative of major significance for Beacon Foundation is Collective ed. which is running in Tasmania. Collective ed. is a network of six schools, communities, partner organisations and a statewide support team working to significantly increase the number of young people who complete Year 12.

Underpinning Collective ed. is an approach called collective impact, which recognises that large scale change comes from collective community effort, rather than isolated policies.

While this is a new initiative, its approach is in line with 30 years of our work - connecting schools, industry and community.

We continue to adapt and refine our programs so that we can deliver best practice work readiness activities for our young people.

Educators and business alike are seeing not only the benefit, but the real necessity of students and workplaces being introduced, aligned and working toward the same goal – meaningful employment for young Australians.

Beacon Foundation has a number of fantastic and loyal partners who help make our work possible, and thousands of volunteers who give their time to support our activities.

Sadly, the youth unemployment rate in Australia remains at least double the overall figure, and in some communities, five or six times that.

We know, however, that program delivery alone is only one part of addressing underlying causes of unemployment: the mismatch between education and the labour market.

We want to ignite a conversation about how Australia can better support young people’s transition to. We hope governments, along with industry will join in this conversation and be part of broader structural change to alter the course of youth unemployment.

A private consortium has put forward a plan for a rail link to Melbourne airport, a US$10.8bn scheme that was approved by Canberra in April of this year.The AirRail Melbourne consortium, which is made up of primarily of institutional investors and transport operators, is offering to pay a third of the cost of the link. The remainder of the money will be met equally by the state government of Victoria and the Australian federal government.

AirRail described its plan as a “Super Train” that would “connect the entire Victorian rail network with the airport, cut road congestion in Melbourne’s west and north and complement the Metro Tunnel and proposed Suburban Rail Loop projects.

The plan would involve laying 27km of new track and boring tunnels between the Southern Cross station in the city’s Docklands and Sunshine station in the western suburbs.

It would also involve a new interchange at Southern Cross and a redevelopment of Sunshine, which would become a hub for suburban, airport and regional passengers.

There would also be a new metro station at the airport, designed by UK firm Grimshaw Architects, which is also involved in the expansion of the airport’s Terminal 2 international arrivals hall.

The final system would offer a departure every 10 minutes, and a travel time from end to end of 20 minutes.

The consortium comprises the IFM Investors superannuation fund, the Australia Pacific Airports Corporation, which runs Melbourne Airport, Metro Trains Australia and Southern Cross Station.

Brett Himbury, IFM Investors chief executive, said: “Our ‘Super Train’ investment proposal represents a significant opportunity for 7 million Australians to invest in a nation-building project through their superannuation funds.

“A partnership between the Victorian and Commonwealth Governments demonstrates the universal support for this essential project which has transformed talk of a Melbourne Airport Rail Link into a viable project that drives productivity for the nation.”

The proposal follows a comment from Daniel Andrews, the Labor premier of Victoria, that there would be a “stampede from the private sector” to be involved in the airport rail scheme, as well as the state’s suburban rail projects.

2018 National Professional Excellence in Building Awards


REPORTS

beyondblue has launched its fourth Heads Up campaign by responding to a series of live job advertisements to give Australian businesses the tools to create mentally healthy workplaces.

With more than 12 million people spending one-third of their week at work and one in five employed Australians experiencing a mental health issue, the imaginative campaign enlivens the traditional hiring process by engaging managers and professional leaders in a surprising, yet simple way.

This year’s Heads Up campaign ensures HR professionals and business owners have the information and tools needed to foster a mentally healthy work environment – detailed via a CV and cover letter application, which defines the nine attributes of a healthy workplace.

beyondblue delivered the ‘mock’ job applications to companies currently hiring across industry segments including HR and recruitment, management and telecommunications, health and education, media and publishing, and finance and law.

“Heads Up takes an educational approach to workplace health – and this year is no different,” says beyondblue CEO Georgie Harman. “We’re excited to see the recipients’ reactions to our ‘mock’ job applications from beyondblue. It’s an engaging and creative way to bring a serious and hugely important topic into conversation.

“Heads Up is for big and small businesses alike, from sole traders to multinational corporations. No matter the business size, the role of leaders is crucial to create and sustain positive mental health.

“Through Heads Up, we also have a host of online materials, backed by evidence-based information, tools and resources to help businesses manage mental health and employee wellbeing.”

Heads Up has accessible resources for employers, employees, managers and small business owners.

To find out more, visit headsup.org.au or to download your copy of Developing a workplace mental health strategy: A how-to guide for organisations, visit bb.org.au/2n6qP7y. To learn more about beyondblue, visit beyondblue.org.au

Mental health professionals are available at the beyondblue Support Service via phone 24/7 on 1300 224 636 or via beyondblue.org.au/get-support for online chat (3PM – 12AM AEST or email responses within 24 hours).

Purpose-made CV and cover letter from beyondblue provides Australian businesses with skills to create mentally healthy workplaces

creates ‘mock’ job application to drive workplace mental health action

MORE THAN 12 MILLION PEOPLE

SPENDING ONE-THIRD OF THEIR WEEK AT WORK AND ONE IN

FIVE EMPLOYED AUSTRALIANS

EXPERIENCING A MENTAL HEALTH ISSUE

http://headsup.org.au

http://bb.org.au/2n6qP7y

http://beyondblue.org.au

http://beyondblue.org.au/get-support

http://beyondblue.org.au/get-support


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Whether you are from a trade or technical background and looking to develop new skills, gain accreditation or advance your career in the built environment sector, CQUniversity Australia can help you achieve your goals.

Our built environment courses are available online, allowing you to balance your study with your career and lifestyle.

Study options include: » Associate Degree of Building Design » Bachelor of Building Design » Associate Degree of Building Surveying » Bachelor of Building Surveying and Certifi cation (Honours) » Bachelor of Construction Management (Honours).

Gain a world-class education from a university ranked in the top 2% of unis worldwide*, and get the edge you need to advance.

Apply now to study in 2019. cqu.edu.au/builtenvironment*Times Higher Education World University Rankings 2019. Visit www.cqu.edu.au/reputation.

“I love knowing that the degree I’m getting from CQUniversity is already accredited.” – Beatrix King, Bachelor of Building Surveying and Certifi cation (Honours) student.

According to the Australian Government Job Outlook, there is likely to be around 47,000 job openings in this field through to 2022, with workers leaving and new jobs being created.

With excellent prospects on the horizon, there’s no better time to consider upskilling with a Bachelor of Construction Management (Honours) degree from CQUniversity to best prepare you for career progression into construction management.

CQUniversity is one of the few universities offering built environment and design course by online study, enabling you to study anywhere in Australia and while

you’re working full or part-time.

The construction management course is offered part time and online, giving you the flexibility to balance personal and professional commitments.

Designed to develop your expertise in planning and communication and provide you with an in-depth knowledge of construction, the bachelor-level course has a strong focus on construction management and planning, services, building maintenance and materials and structures.

With CQUniversity’s strong industry links, students can be assured that they are gaining a practical understanding of the

latest industry innovations, industry codes and practices.

Students learn about material selection and usage, communication, planning and ethics, ensuring they are well-rounded in knowledge and work ready.

As a leader in online learning, CQUniversity provides an excellent platform to learn from skilled lecturers and academics and also like-minded peers.

To learn more about CQUniversity’s Bachelor of Construction Management (Honours) degree and its entry requirements, visit the CQUniversity website www.cqu.edu.au.

ThedemandforconstructionmanagersinAustraliahasgrownstronglyoverthepastfiveyearsandisexpectedtocontinuetogrowoverthenextfive.

No better time to upskill for a management role


REPORTS

Background

Construction is widely recognised to be one of the least efficient industries in the developed world, with comparatively low labour productivity and high levels of waste.

In their 2017 report ‘Reinventing Construction: A Route to Higher Productivity ’ McKinsey noted that global construction labour productivity growth averaged 1% a year over the past two decades compared with 2.8% for the total economy and 3.6% for manufacturing. They estimate that if construction productivity was to catch up with the total economy, global GDP would be boosted by 2% or a staggering US$1.6 trillion a year.

The Australian Construction Industry Forum policy paper ‘Boosting Construction Industry Productivity’ noted that in 2015-16 the Australian Construction Industry had a turnover of $212billion, equating to 12.7% of GDP but wasted up to 30% of its efforts. A one third reduction in waste could therefore potentially provide an additional $20 Billion to be spent elsewhere or on new projects.

What can be done to address this problem?

Lean Construction

Following World War II, Toyota developed the Toyota Production System that focused on reducing waste and optimising the flow of the product through the production process whilst maintaining flexibility to produce a variety of products. This system has subsequently been successfully adopted and developed by a wide range of manufacturing industries, the principles of which have come to be known as Lean Manufacturing.

In 1993 a group of passionate architecture, engineering and construction (AEC) professionals eager for similar change in the construction industry formed the International Group for Lean Construction (IGLC) with a vision to:

“…better meet customer demands and dramatically improve the AEC process as well as product. To achieve this, we are developing new principles and methods for product development and production management specifically tailored to the AEC industry, but akin to those defining lean production that proved to be so successful in manufacturing”.

According to the Lean Construction Institute (LCI), the primary principles of Lean Construction are:

Respect for People

People are integral to the successful implementation and delivery of lean construction processes, through free and uninhibited flow of ideas and constructive feedback, neither of which would be possible without there being mutual respect for all participants in the process.

Such participants could range from senior representatives of the Client, Architect and Constructor to specialist trade foremen and supervisors.

Is a new standard form of construction contract required to drive greater adoption of lean construction principles and address high levels of waste and low labour productivity on construction projects in Australia?

Lean this Way for Improved Project Outcomes


REPORTS

Focus on Process and Flow

The target for lean construction, as with lean manufacturing, is to achieve a reliable, continuous uninterrupted workflow. This is primarily achieved through open communication between all project stakeholders both during the development of the project schedule and just as importantly, during the project when an activity deviates from the schedule. This communication enables adjustments to be quickly made to the schedule for follow on activities thus avoiding delay, waste or excess inventory.

The Lean Construction Institute has further developed a system of lean construction principles specifically focused on improving the reliability of the scheduling process called Last Planner ®, the primary focus of which is to pull information from project stakeholders in a collaborative process to develop a detailed schedule, rather than pushing participants to meet a schedule developed in isolation from the majority of stakeholders.

Generation of Value

The traditional approach to construction focuses on what the Client wants the construction team to build e.g. what is shown in the plans and specifications, whereas

Lean Construction processes encourage the project team to consider overall value from a Client’s perspective. This is usually achieved by bringing together all of the project stakeholders, including the Client, to define a project’s Conditions of Satisfaction.

Removal of Waste

A key principle of Lean Construction is the elimination of waste to the greatest extent possible, accepting that total elimination is an unrealistic expectation. Waste is generally defined as resource utilisation that does not add value but the LCI have defined a number of construction related subsets of this:

Defects: Defects are anything that is not done correctly the first time, resulting in rework that wastes time and materials.

Overproduction: In construction, this means completing a task before it is required or before the follow-on activity can start.

Waiting: This is probably the most common form of waste on a construction project when an activity cannot start e.g. due to lack of available materials or delay in a preceding activity.

Underutilizing Talent: This could include utilizing skilled workers for unskilled work or not using them to their full capacity.

Transport: This refers to the unnecessary movement of resources from activity to activity e.g. because the activity is not able to commence which could include administrative tasks as well as physical tasks.

Inventory: Materials that are not immediately needed are considered excess inventory. They tie up budget, require storage, and often degrade when not used.

Motion: This refers to unnecessary movement, like too big a distance between workers and tools or materials.

Over Processing: Over processing is the undertaking of activities not necessary for meeting the Client’s requirements.

To this list could also be added Disputes. Contractual disputes can interrupt the flow of activities, delay work and result in the utilsation of resources that do not add any value whatsoever and arguably reduce value through damaged relationships.

Continuous Improvement

Central to the concept of lean Construction is the principle that it is necessary to continuously improve all processes with the aim of eliminating waste, or to quote from LCI:


REPORTS

Lean thinking demands a mindset of continuous improvement. Leaders must create an environment where experimentation is encouraged and small manageable failure is acceptable if the goal is to improve continuously.

However, despite the best efforts of LCI, IGLC and others, the construction industry has been slow to adopt any of these lean principles due in large part to the perception that lean methods are only applicable to controlled environment such as a factory floor producing standardised products i.e. the opposite situation to that found on a construction site.

But is there another reason holding back the adoption of lean construction principles?

Why are contracts important for Lean?

One of the most important principles of Lean Construction is that by optimizing a single step in a process you de-optimize the whole.

Unfortunately, traditional construction contracts divide all the parties on a project into separate camps. Commercial logic dictates that each party will be intent on optimizing its own part of the project, thus de-optimizing the whole. Examples of this approach include passing of risk to the party least able to manage it and including onerous contract terms that lead to time consuming disputes.

What is the best form of contract for Lean?

It follows that in order to optimise the project delivery process as a whole, all parties contributing to the process should contract on terms that encourage collaboration, open communication and commercially incentivise best for project outcomes. This approach has come to be defined as Integrated Project Delivery (IPD) and is becoming increasingly prevalent in the Unites States of America, where it has been championed by large Client organisations such as Sutter Health.

The American Institute of Architects defines IPD as:

“..a project delivery approach that integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to optimize project results, increase value to the owner, reduce waste and maximize efficiency through all phases of design, fabrication and construction.”

The main elements of IPD contracts are…

One multi-party agreement between the Owner, Contractor, Designers and Major Trade Contractors

Reimbursement based on actual cost

Shared ownership of risk

Incentivisation to meet cost, time and other pre-agreed key performance targets

Existing Australian Standard Collaborative Contract Forms

Many of the elements of IPD contracts are met by the standard Alliance forms of contract currently used in Australia, however there are a number of crucial distinctions between Alliance and IPD forms of contract:

IPD contracts can contain a guaranteed maximum price i.e. the parties are at risk of not being paid their costs if the agreed target cost is exceeded whereas under an Alliance form of contract it is only the party’s fee which is at risk.

IPD contracts usually mandate the use of Building Information Modelling (BIM) systems, the Last Planner ™ scheduling process and other elements of Lean Construction

The parties to an IPD contract are able to pursue legal redress against each other in the event of a dispute.

Whilst some more enlightened Australian project owners are developing their own form of IPD contract (such as the Department of Defence), the focus has been more on the incorporation of a GMP and ‘hardening’ of Alliance forms as opposed to facilitating the implementation of BIM and the Lean Contracting principles necessary to truly increase production productivity and

project value.

Recent efforts to introduce an update to the AS 4000 standard form of Lump Sum contract failed due to an inability to agree on, amongst other things, the introduction of collaborative principles into the contract. Perhaps, rather than trying to introduce collaboration principles into an inherently adversarial form of contract it is time that attention was turned into developing an Australian Standard form of Integrated Project Delivery Contract for use by those truly enlightened Owners seeking to reap the proven rewards of Lean Construction.

Jon Davies

Jon is CEO of the Queensland Major Contractors Association, Principal of Brackenway Consulting and Managing Partner of the Lean Construction Advisory Group. He is a recognised commercial leader with extensive local and international commercial management experience at both project and corporate levels. He is passionate about improving productivity and reducing waste in the construction industry and is a council member of the Lean Construction Institute Australasia (Queensland Branch).

Jon Davies, CEO of Qld MCA


REPORTS

Construction workers account for 6.9% of all suicides in New Zealand, marginally higher than that of farming and forestry, which sits at 6.8%.

Chris Litten, head of industry research at Branz, said a consistent message emerged from its survey of the industry. “We found that the culture of toxic masculinity is really rife. The ‘take a concrete pill and harden up’ attitude is really prevalent in the industry.”

He added that construction’s boom-and-bust cycle played a part by giving workers either too much work or too little, calling it “really draining and stressful on people”, because

booms result in long hours, fatigue and a greater incidence of separation and divorce.

People interviewed cited intolerance of

workers who varied from the white, male, heterosexual norm, drug and alcohol abuse, the low status of construction as a career and conflicts between young and older men on site.

However, the report also found signs of improvement. One interviewee said the increasing number of women in the industry was improving site culture, and interviewees in leadership positions described fostering a working environment where employees were encouraged to ask for help, or accept it when offered.

The authors of the report, Kate Bryson and Anne Duncan, said there was an “indisputable appetite for culture change” among interviewees. They added that this could be as simple as “asking workmates how they are”.

Not everyone in the industry agreed with the Branz’s interpretation of its data. Rick Herd, chief executive of construction firm Naylor Love, told Radio New Zealand that the report overplayed bullying, and suggested a more likely cause was economic insecurity experienced by managers of smaller companies.

He said: “That’s where I believe we’ll find, when more research is completed, that the biggest issues around suicide and mental wellbeing are going to be most prevalent.”

A report published by the Building Research Association of New Zealand (Branz) has found that the suicide rate in the country’s construction industry is the highest of any industrial sector, and is largely the result of a “toxic” culture of on-site bullying.

“Toxic masculinity” blamed for New Zealand’s high construction suicide rate

“THE ‘TAKE A CONCRETE PILL AND

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IN THE INDUSTRY”– CHRIS LITTEN, BRANZ

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Securing payment for work performed is essential to operating any business. This is even more so in the construction industry, where tight margins and unexpected expenses can quickly overtake a project. A failure to secure payment for work could also expose businesses to claims from their own subcontractors.

The recent Murray Review of Security of Payment Laws found that Australia ranked among the worst in the world in terms of poor payment practices and insolvency in the building and construction industry. This reputation has not been helped by the collapse of many large construction companies in recent years.

Common Issues in Payment

Builders and contractors can end up in payment disputes as a result of numerous issues leading to poor payment practices including:

Inappropriate contracts being used for jobs;

Poor clarity of contract terms;

Underestimation of time required to perform the contract works;

Poor recordkeeping of time spent and work performed under the contract;

Poor documentation and compliance with variations and extension of time procedures under the contract;

Improper use of retention sums in contracts;

Harsh and unfavourable terms in construction contracts;

Inconsistent payment terms between head contracts and subcontracts;

Poor timing of payment claims;

Underpayment by head contractors of payment claims;

Late payment by head contractors of payment claims;

Poor enforcement of summary judgments and adjudicator determinations.

These issues are often made worse by the resource imbalances between parties in construction contracts.

The cost of taking payment disputes to Court

can very quickly add up and be disproportionate to the amount in dispute.

Security of Payment in NSW

The Building and Construction Industry Security of Payment Act 1999 (SOPA) gives contractors a way to recover money from head contractors.

Victoria, Queensland, South Australia, Tasmania and the ACT have also based their security of payment legislation on the NSW SOPA but there are features specific to the process in each of those states.

SOPA does not apply to certain contracts such as:

Construction Contracts forming part of a loan agreement, a contract of guarantee or a contract of insurance where;

A construction contract for residential building work where one party resides in the work;

A construction contract where payment is calculated by any other reference than the value of the work performed.

SOPA claims are not limited to building work and include “related goods and services supplied” in relation to construction work. This is defined in the Act and can include services such as:

Architecture, design, surveying services;

Building, engineering, interior or exterior decoration or landscape advisory services;

Labour hire services;

Transport and equipment hire;

SOPA Claims: How to secure your payment

POLICY


Supply of building materials, or components of structures arising from construction work.

The Recovery Process

Generally, the recovery process involves:

The contractor serves a payment claim identifying the works performed, and money owed on a person who is liable to make a progress payment under the contract;

The person who receives a payment claim may reply with a payment schedule within a prescribed timeframe in NSW of 10 days;

If a payment schedule is not provided within the prescribed timeframe, the person who serves a payment claim may either:

o Apply to Court for summary judgment; or

o Apply for adjudication of the dispute

If a payment schedule is provided for a lesser amount, the person who serves the payment claim may either:

o Accept the scheduled sum; or

o Apply for adjudication of the dispute.

Adjudication is a “brutally fast” process where adjudicator considers the materials from both parties and makes a binding determination of the dispute. An adjudicator’s determination can be enforced as a debt through the Courts.

The above process is only intended as a summary of the claim process under SOPA and there are very technical requirements which accompany each step.

Not complying with the technical requirements can expose a claim to challenge, which can throw away many months of work and prevent the dispute from being revisited later.

There is no uniform security of payment regime in Australia. States other than NSW and the territories have their own requirements in their security of payment legislation.

Key Points

While the SOPA gives contractors a way of recovering progress payments under the contract, it is by no means a perfect process and takes the approach of “pay now, argue later”.

An adjudicator’s ability to determine disputes may be limited by the contract documents and the condition of the records.

An adjudicator’s determination, especially in claims involving larger sums, may be also subject to challenge in the Courts.

Making an adjudication application can also be a costly exercise in itself and there is no guarantee the disputed sums can be recovered.

In our experience, many payment disputes can be avoided by:

Research the other contracting party and

their history of payment to others;

Research the job and latent conditions to ensure it can be carried out in the provided time and manner;

Ensure the contract is appropriate for the job;

Ensure there are clear contract terms about payment, variations and extensions of time;

Ensure the works are sufficiently budgeted in the contract, with sufficient start times and leeway for contingencies;

Ensure the contract has an appropriate dispute resolution mechanism;

Maintain detailed records when performing the work, including keeping track of time, expenses and progress of the works;

If dispute arises, make sure the payment claim complies with all the technical requirements under the legislation;

If you are served with a payment claim, ensure you respond with a payment schedule within the prescribed time.

The above steps can help minimise the inherent risks when entering into contracts for building works and related supplies and services, and reduce the prospects of an expensive recovery process.

Prepared by Bannermans Lawyers

POLICY

W: www.lahey.com.au T: 1800 890 709 E: [email protected]

JOYNTON AVENUE CREATIVE CENTRE, GREEN SQUARE

Excellence in Construction


As most parents have experienced, young adults ask about industries and careers. They have made us think further about what the construction industry has to offer. We have concluded it is the best career a young person could choose. You may not believe it, but the facts will show our business is unmatched. It offers participants long-term advantages. However, many people will argue. Let us share with you a dozen career benefits our industry possesses. You be the judge.

1) The Industry is Not Going Away - Construction provides one of four necessities to human life i.e. shelter, food, clothing, and water. A second if you count constructing water acquisition and distribution. Contrastingly, many manufacturers have left this country. However, construction cannot be exported. It must be “in situ” or occurring where it produces the product. This is unlike call center, computer programming or engineering where other countries provide it from afar and then send it back to the Australian Construction and its sister; demolition are captive to the site.

2) Merit-Based – The construction industry rewards hard work. There is no substitute. We are all dissatisfied with the work ethic today. When we find it, we reward it. Let us give you an example – a person comes to you (male/ female) doesn’t speak English well, but has promised to work hard and follow your company’s rules. You give them a chance and one year later; you are glad you did. They kept their promises. Now, what will you do? Ignore them? Cut their pay? Of course not! You will increase their wages and give them more responsibility. Construction contractors reward great work.

In a few years, that same person, having earned the technical understanding and crew following might start their own business. It is almost expected. After working in the field and interacting with clients and managing labor, it is normal and rational for this person to at least attempt it.

Additionally, the industry is merit-based. Question: What is the best advertising in the construction business? A completed project that is on-time and on-budget. It speaks volumes of

a contractor’s savvy and diligence. We believe that there is a minority of great contractors. Word of mouth will travel fast. Excellent contractors have more opportunities for work than their lesser competitors.

3) Small is Big – Construction rewards the small construction firm. That is, they make a higher percentage of profit. This is a variable cost business. In other words, you are not required to have “critical mass” to be profitable. Net profit statistics consistently show that smaller contractors make a higher percentage of profit before tax than their larger brethren. Construction is one of the few industries that the big don’t eat the small, but the fast eat the slow. Furthermore, smaller projects have a higher percentage of profit, and in a slow economy, they never go away.

4) Tangible – Our industry erects monuments. Our work is visible to everyone. We can see it for decades after completing it. Construction people show friends, relatives, and potential clients these projects each day. Unlike other industries, we see what we accomplish. Likewise, there is little room for puffery i.e. “smoke and mirrors.”

5) Highly Paid - The construction industry for a non-supervisory, production worker pays a top 5 wage of all industries. Industries who compensate production workers as well are a) Utility employees and high voltage workers b) Miners c) Petroleum roughnecks and d) Computer technicians. The lowest a) Apparel b) Textile c) Retail.

6) Best Earning Years Later in Life – Statistically, this is difficult to prove. However, anecdotally we have seen enough financial statements and compensation plans to believe that this is a fact. The prime earning years appear to reside in the 50’s and early 60’s. In our travels working with clients in the United States, the older contractors have competitive secrets and keep them to themselves. It is to their profitable advantage. As a trend, a contractor’s earnings grow over the years. I have seen increases as either percentage or gross dollars or both. Their manager and worker’s salary with bonuses tend to increase as they gain experience. Construction becomes

more monetarily beneficial with experience.

Why? Because the business is mostly about people and processes. An older professional has had plenty of experience with both.

People: You know more people just by the years in the business. You also know which ones to coddle, chastise, or put an arm around to motivate.

Processes: Experienced construction professionals know what doesn’t work and what does. They have certainly tried a lot of good ideas over the years. Additionally, they don’t make the same costly mistakes that a younger and less experienced contractor makes. Hence, they have a competitive advantage.

In contrast, the best earning years of most other industries are between 35 and 50 (professional sports and fashion modeling excluded). The reason for this early, high compensation is the energy, willingness to travel, want to take risks, and spend an extraordinary amount of time troubleshooting problems. Subsequently, their bonuses are high. In contrast, profitable construction is based on consistent and correct processes, somewhat like the manufacturing business. The more consistently a person does the correct things of which, the better the outcome.

Age discrimination is an issue. Some of our older relatives work in various industries, and they will tell you that they are underemployed. Each has an advanced degree and are over 50 years old, but are not asked about higher positions in their firms. It is sad to see and even worse to experience.

To re-emphasize, construction contracting consists of two components – people and processes. An older executive has a deep understanding and experience of handling people and building projects. They have the scar tissue to prove it! Our conclusion is a contractor’s best earning years tend to be in their 50’s and 60’s.

7) Few Consolidations or Mergers – The construction industry is an owner-operator business; in Australia approximately 90% of firms employ 5 people or less. Efforts to consolidate have shown the power of a small business – you cannot beat an owner who is risking his wealth every day. Large firms may be at a disadvantage. Again, small is big, and the fast eat the slow. This dynamic translates into hundreds of thousands of family-owned businesses that will continue to operate if there is another generation that is willing and able to take over.

8) Local – Where can a construction company be started? Anywhere! Construction expertise is needed in all eight states. It does not need a port facility or wide-open spaces to operate, but only where people live or circulate. You can start one where you live, and that is family-friendly. An important consideration these days for all working professionals who want to stay closer to their loved ones.

It appears that construction professionals have more career and business success when they stay local. Local acquaintances including people who know you from childhood are more comfortable and willing to work with you since you are a known quantity. The risky nature of construction encourages buyers to work with those they trust.

9) All Educational Levels are Welcome – Education starts and extends a career. At whatever level a hardworking person begins, they will

One of the Best Industries in Australia By Matt Stevens Ph.D.

OPINION


not stay there. Good work is rewarded by more pay and higher position. From an educational standpoint, you learn how to install quality work with your two hands. University students studying construction don’t go to class with their tool belts on. I strongly believe that someone who has owned and operated a profitable construction business for 20 years has earned an informal bachelor’s degree. They have technical and business skills that can be tested.

As an example, Stevens’s sister is a horse trainer and never attended college. Peggy has been working in the equestrian business since she was 11. That makes her experience 30+ years. One of her students (and by inference, Peggy) won one of the highest U.S. honors in Hunter–Jumper competition - no small feat. Due to this, we insist she has an informal Master degree. in equestrian management. If she ever needed traditional employment, she would have many offers to choose from.

However, it is obvious that college graduates will earn more and have better career prospects. It is important to state, for those who do not seek knowledge whether formally taught or not, it is the extraordinary person who persists and achieves when working from a deficit of knowledge.

10) No Large Capital Investment Needed – As is the legend, some successful construction firms have been started with little startup capital. In this business, beginning cash is not a major obstacle. This is a cash flow and variable cost

business. To start a contracting firm, a person does not have to float an IPO or have a rich uncle. What you need is an understanding of the economics and construction craft skills.

11) Shortages of People Wanting to be in this Profession – Industry economists agree that we still have a shortage of qualified people in construction. As we have learned in our lifetimes, the Supply/Demand Curve is very powerful. A shortage of anything drives the price up. Competent construction professionals’ earnings have outstripped general wage increases in other industries. That is job security as well as wealth building. Ask a computer programmer or an airline pilot about the times of oversupply of people and the effect on wages and opportunity. Your grandparents may remember the oversupply of engineers in the 1950’s. It is a danger to any professional; however, there is less of a possibility for construction people in the foreseeable future.

12) Wealth Building - In our industry, once you understand the construction process with technical knowledge, and gain the needed personal connections, you can build the most expensive personal investment – a residence - with less cost than any non-construction professional. On the day that you finish your first house, you have earned thousands of dollars in personal equity. With this skill, you will enjoy financial leverage in the real estate market. Additionally, it is important to remember that the largest asset class in the world is improved land at $400 trillion (as a comparison, the value of all countries’ GDP is $80 trillion).

Remember, it is estimated approximately 90% of millionaires have real estate in their portfolios.

Summary

What other industry has all these attributes? The answer is few. Although, the perception persists that our industry does not have much to offer young people. It is not true and a myth.

However, surveys have shown people in construction do not recommend our industry to their children. A major association recently queried its members with the following question: “Would you recommend this industry to your son or daughter?” The answer came back as 72% said “no.”

We must stop this habit. We should simply communicate the facts to the interested parties. I challenge each of you to promote our industry. Let the truth be told and it is an exceptional story. Career transitions often occur with this latest generation; it is never a bad time to have a chat with the young people you know.

Matt Stevens, Ph.D. is a Lecturer at Western Sydney University and a member of the Centre for Smart Modern Construction. Stevens has been advising contractors since 1994, and his industry experience spans over 40 years. He has presented to more than 600 audiences and engaged over 100 firms.

OPINION


INNOVATION

Research funded by the European Union’s Horizon 2020 has found that fibres from vegetables can strengthen concrete.

Normally, concrete is formed of water, aggregate and Portland cement, but researchers found that adding tiny “nanosized” platelets from beetroots and carrots creates a stronger mixture by increasing the amount of calcium silicate hydrate generated, which is the product that strengthens concrete.

The vegetable extract strengthened the mixture so well that 40kg less Portland cement was needed per cubic metre of concrete. Lancaster University and company Cellucomp conducted the study. The team found that concrete containing vegetable composites surpassed mixes with additives like graphene and carbon nanotubes.

The vegetable additive is also cheaper and can be sourced from food waste. Prof. Mohamed Saafi, lead researcher, said: “The composites are not only superior to current cement products in terms of mechanical and microstructure properties but also use smaller amounts of cement. “This significantly reduces both the energy consumption and CO2 emissions associated with cement manufacturing.” Future research will determine if existing concrete structures could be reinforced with sheets made from vegetable nanoplatelets. Cellucomp currently uses root vegetable fibres to produce longer lasting paint.

The designs for the third phase of the Habitat Centennial Challenge, which began back in 2014, required teams to construct building information models, or BIMs, of the habitats to prove that they would function in Martian conditions – as far as these are understood.

This means developing detailed designs for structures large enough to allow four people to live there for a year.

The BIMs will also have to take into account pressure resistance, heating and thermal insulation, structural strength, air filtration and energy generation.

The winning design was from Zopherus, an

Arkansas-based team that plans to print its modules inside a large lander.

The idea is to have the lander crawl around the surface of the planet until it finds a level site. It then deploys rover robots to test the surface. When suitable materials are found, the lander seals itself to the ground to create a pressurised chamber.

When complete, it rises and moves a short distance to create another, a process that resembles a chicken laying an egg.

The second-placed design is by AI SpaceFactory from New York.

Its Marsha (MARS HAbitat) is aimed at handling the difference between internal and external pressure – the Martian atmosphere is thought to be about one hundredth of the density of Earth’s.

It envisages a vertical egg-like container with a double shell and a minimal footprint. One advantage of the shape is that it avoids the need to move the printer in between modules.

The design would be made from a reinforced type of thermoplastic called PLA, which is recyclable

has lowest coefficient of thermal expansion among plastics.

Third place was Kahn-Yates of Jackson, Mississippi. This envisages a printed structural layer giving way to a high-strength plastic layer that lets the light in. This aerodynamic structure is optimised to deal with dust storms, and is large enough to contain a quarantine unit, laboratory and garden, as well as the services and living quarters.

The team from SEArch+/Apis Cor of New York came up with the most striking aesthetic design. This horizontal egg contains two separate living areas, to build some redundancy into the design. The shape and orientation are intended to provide maximum protection from harmful radiation while making the most of what light reaches the fourth planet.

Fifth place was taken Northwestern University of Evanston, Illinois. This proposes a spherical shell within an outer parabolic dome. Construction would be carried out by an autonomous robot printer, which would create a structure by spraying an inflated pressure vessel, which would then have the job of keeping the structure airtight.

Lex Akers, dean of the Caterpillar College of Engineering and Technology at Bradley University, NASA’s partner in this challenge commented: “The virtual levels allow teams from high schools, universities and businesses that might not have access to large 3D printers to still be a part of the competition because they can team up with those who do have access to such machinery for the final level of the competition.”

The next stage of the competition will require scale models of the designs will be built.

Five teams have won the latest stage of NASA’s competition for habitations that can be 3D-printed on Mars. They will now share a $100,000 prize, awarded by a jury of experts.

Living on Mars: NASA reveals winners of BIM design competition


The lightweight, stackable girders are twice as strong as steel and concrete girders, and the system can be erected with common rental cranes, say researchers at the university’s Advanced Structures and Composites Centre.

The University of Maine has unveiled a system for building highway bridges in just 72 hours using composite material girders and precast concrete deck panels.

As well as being a logistical breakthrough – up to four bridges can be transported on a single flatbed truck, researchers said – the system is durable and easily maintained: girders are designed to last 100 years and the precast deck can be easily replaced.

The system can be used for short- to medium-span highway and pedestrian bridges, and by the military, the university said. The design allows for up to 80-foot unsupported spans.

Last month a bridge girder was strength-tested in the laboratory using hydraulic equipment that simulated the heaviest highway truck loads.

The test proved design modelling predictions and showed the bridge system can withstand the loading specified in the American Association of State Highway and Transportation Officials (AASHTO) Bridge Design Specifications.

“Today’s bridge test exceeded our expectations. The composite bridge withstood forces equivalent to more than 80 cars stacked on top of each other, and more than 5 times the HL 93 design load specified by AASHTO,” said Dr. Habib Dagher, executive director of the center.

He called it “a truly a remarkable engineering achievement”.

The US Army Corps of Engineers sponsored research on the system, which is patent-pending.

Dagher continued: “This bridge system takes advantage of the unique properties of both composite materials and precast concrete, and it is designed with construction logistics in mind. The bridge girders weigh only 1-2 tons for 40- to 80-foot spans, so that they can be erected with locally-sourced common rental cranes, making them easy to deploy in most locations.”

The university is working with a company, AIT Bridges, to commercialise the system. After the strength test its chief executive, Brit Svoboda, said “today’s event allowed us to showcase this new technology with potential investors as well as DOT partners and executives. We’re ready to go to market.”

THE COMPOSITE BRIDGE WITHSTOOD FORCES EQUIVALENT

TO MORE THAN 80 CARS STACKED ON TOP OF EACH

OTHER, AND MORE THAN 5 TIMES THE HL 93 DESIGN LOAD

SPECIFIED BY AASHTO

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INTERNATIONAL

The theme of the conference was “Educating Building Professionals for the Future: Innovation, Technology, and Sustainability in the Globalised Market”

This conference was highly successful with positive feedback from delegates. It attracted over 100 delegates from Australia, New Zealand, Singapore, South Africa, Indonesia, India, Vietnam, Ghana, Uganda, Thailand, UK, UAE, and China/Hong Kong. Conference delegates included 56% academic, 25% students and 19% industry and government. In all, there

were 89 final full papers accepted in 3 proceeding books: Innovation, Technology, and Sustainability. The conference was chaired by Associate Professor Monty Sutrisna of School of Design and the Built Environment and Officially opened by Prof. Linley Lord, PVC, and President of Curtin Singapore.

Associate Professor Dr. Ronald Webber (CQU) chaired several conference presentations and awarded the Royal Australian Institute of Building Scholarship for best paper in AUBEA 2018.

The 42nd AUBEA Conference in Singapore, 26-28 September 2018 was opened by Professor Josua Pienaar.


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Yale University and UN design tiny, sustainable houseTwo United Nations (UN) agencies have teamed with Yale University to construct an “Ecological Living Module”.

Measuring just 22 sq m, the tiny house is made from natural, local materials and can be fully powered by renewable energy.

It is intended to “spark public discussion and new ideas on how sustainable design can provide decent, affordable housing while limiting the overuse of natural resources and climate change”, according to the UN Environment agency.

The module’s built-in systems include: solar energy generation, on-site water collection, plant-based air purification and adaptable components for living and working.

Erik Solheim, UN Environment head, said: “We clearly need more housing, but the key thing is that we also need smarter housing.

“The housing sector uses 40% of the planet’s total resources and represents more than a third of global greenhouse gas emissions. So making them more efficient will benefit everyone, and it’ll mean lower bills too.”

Deborah Berke, Yale School of Architecture dean, said: “Architecture must address the global housing challenge by integrating critically needed scientific and technical advances in energy, water, and material systems while remaining sensitive to the cultural and aesthetic aspirations of different regions.”

The Ecological Living Module was located in New York’s UN Plaza from July 9-18, as part of the UN High-level Political Forum on Sustainable Development.

The New York module contained features relevant to its locale, while a module planned for Kenya will have features appropriate to that country, the UN said.

The $2bn “Dubai Square” is earmarked for Dubai Creek Harbour and will be more than twice the size of Dubai Mall.

It will also be home to the Middle East’s largest Chinatown.

The developer is Emaar Properties and will “push the boundaries of modern retail and leisure by drawing on next-generation technology”.

The high-tech features will include a virtual reality park on the ground floor, smart fitting rooms with interactive mirrors, AI-assistants who can make personalised recommendations, and 3D printed clothes.

Shoppers will also be able to avoid the check-out queue by buying goods on their mobile phones using special apps, or by barcode-scanning applications and radio-frequency identification tags.

As well as the shops, there will be a four-lane boulevard lined with cafes and restaurants and other attractions, such as an “Ice Adventure” park.

A booming construction sector and rapid urbanisation has sent cost and demand for sand sky-rocketing, researchers said. This has led to unregulated sand extraction from riverbeds.

If 10% of sand in concrete were replaced with plastic, the University of Bath estimates that 820 million tonnes of sand could be removed from India’s streets.

Researchers had to find a balance between the removal of sand and the addition of plastic. John Orr, the report’s principal researcher, said: “Typically, when you put an inert, man-made material like plastic into concrete, you lose a bit of strength because it doesn’t bond to the cement paste in the same way.

“The challenge here was to have a limit between a small reduction in strength, which we achieved, and using an appropriate amount of plastic to make it worthwhile.”

Richard Ball, another researcher, added: “Even when the reduction in performance prohibits structural applications, lower tech uses such as paving slabs may be viable.”

Just when it seemed that the era of jaw-dropping Dubai mega projects was over, the emirate has announced plans for the world’s largest retail space: a vast high-tech mall covering an area of 74ha, the equivalent of 100 football pitches.

Research carried out by the University of Bath in the UK, and India’s Goa Engineering College, has found that concrete made with an admixture of ground-up plastic bottles is almost as strong as traditional concrete mixtures.

Nothing succeeds like excess: Dubai plans world’s largest mall

Researchers say India could alleviate its growing shortage of sand, which is needed for concrete, by partially replacing it with waste plastic.

INTERNATIONAL

AIB CPD ONLINE: CONTINUING PROFESSIONAL DEVELOPMENT

VISIT AIB CPD ONLINEaib.org.au/cpdonline

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AIB CPD ONLINE: CONTINUING PROFESSIONAL DEVELOPMENT

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AIB NEW MEMBERS SectionOn behalf of the existing membership, the Chapter Committees and the National Council we extend a very warm welcome to all these new additions to the AIB family.

AIB NEW MEMBERS 17 July 2018 – 18 October 2018

Logan Ashmole MAIB Queensland

Marco Bonadio MAIB Victoria

Ryan Capron MAIB Victoria

Hong Ting Chan AMAIB Hong Kong

Chiu Chong Hung MAIB Hong Kong

Christopher Clark MAIB Overseas

Sheperd Dube AMAIB Western Australia

Andrew Gillespie-Jones MAIB Overseas

Tak Shing Ho AMAIB Hong Kong

Chun Yim Hon AMAIB Hong Kong

Kin Lap Lau AMAIB Hong Kong

Sin Man Mathew Law MAIB Hong Kong

Kam Ho Lee AMAIB Hong Kong

Charles James Lemckert MAIB Aust. Capital Territory

Henry Lie MAIB Hong Kong

Leo Maria MAIB South Australia

April Moir AMAIB Western Australia

Steven Pilling MAIB Western Australia

Chongrui QIN MAIB Hong Kong

Stuart Rash AMAIB Victoria

Rui Zhe Shao MAIB Hong Kong

Hiu Lung Tsoi AMAIB Overseas

Chan Wai Shan MAIB Hong Kong

Melinda Wilmshurst AMAIB Queensland

Ying Kit Yim AMAIB Hong Kong

Head office contact details Greg Hughes [email protected] CEO

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