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Advancing sustainability in infrastructure planning, procurement, delivery and operation. Sustainability Trends in Infrastructure Project Procurement

Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

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Rick Walters, Technical Director, Infrastructure Sustainability Council of Australia delivered the presentation at the 2014 Major Road Projects Conference. The Major Road Projects Conference brings together government officials with those responsible for the planning, financing and construction of Australia’s critical road infrastructure to discuss future plans. It offers a practical assessment of the strategy necessary to ensure Australia’s current and future major roads projects are successful. For more information about the event, please visit: http://www.informa.com.au/roadprojectsconference

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Page 1: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Advancing sustainability in infrastructure

planning, procurement, delivery and operation.

Sustainability Trends in Infrastructure Project Procurement

Page 2: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

• Infrastructure Sustainability Council of Australia (formerly Australian Green Infrastructure Council)

• Member based, not-for-profit, industry council

Enhancing the liveability and productivity of our major cities and our regional communities through advancing sustainability in infrastructure planning,

procurement, delivery and operation.

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ISCA Overview

Page 3: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

ISCA Members

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Page 4: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

ISCA Members (cont’d)

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Page 5: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Global Trend

BUILDINGS

• GBCA – Green Star

– Started 2003

– Over 600 rated + 500 registered

• NABERS

• LEED (USA)

• BREEAM (UK)

INFRASTRUCTURE

• CEEQUAL (UK)

– Started 2003

– Over 150 rated

• ISI - Envision (USA)

– Started 2012

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Page 6: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

• Common national language for sustainability in infrastructure

• Consistent application and evaluation of sustainability in tendering processes

• Scoping whole-of-life sustainability risks for projects and assets, enabling smarter solutions that reduce risks and costs

• Fosters resource efficiency and waste reduction, reducing costs

• Fosters innovation and continuous improvement • Builds an organisation’s credentials and reputation in

its approach to sustainability in infrastructure

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IS Benefits

Page 7: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

IS Rating Scheme Drivers

Page 8: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Traction

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Status Number Value ($m)

Certified 2 350

Registered 15 20,000

Potential 30 30,000

Page 9: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Advancing sustainability in infrastructure

planning, procurement, delivery and operation.

Ratings Certified

www.isca.org.au

Page 10: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Great Eastern Highway Upgrade

A 4.2km section of the Great Eastern Highway between Kooyong Road and Tonkin Highway widened from four to six lanes with a number of ancillary improvements including central medians, upgraded intersections, on road cycling facilities, bus priority lanes and continuous paths for pedestrians.

Proponent: Main Roads WA (MRWA)

Contractor: City East Alliance (MRWA, Leighton Cont., GHD, NRW)

Infrastructure Type: Road

Rating Type: As Built

Location: Perth, WA

Capital Value: $350 million

Start Date: July 2011

Practical Completion: March 2013

Page 11: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Great Eastern Highway Upgrade – Highlights

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Category/ Credit

Score Achievements

Management Systems

6.3/10.5

• Commitment to mitigating negative environmental, social and economic impacts

• Accredited management systems • Thorough risk and opportunity assessment • Knowledge sharing clearly demonstrated • Strong decision making approach incorporating

sustainability aspects

Water 2.9/7.0

• Opportunities to reduce water use identified and implemented

• Instead of using high-value potable water, the project installed groundwater bores and constructed a weir which, on completion, was handed to the local council to irrigate parks.

Page 12: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Great Eastern Highway Upgrade – Highlights

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Category/ Credit

Score Achievements

Materials 6.2/7.0

• Significant reduction in materials lifecycle impacts through extensive use of recycled materials, reducing the use of non-renewable resources of limestone, sand and bitumen

• The highway now has the largest use of recycled material on any WA State road with 43 per cent of imported material being recycled

Previous Land Use

3.3/3.3 • >75% of land used for the project was previously

disturbed

Heritage 2.3/5.0 • Thorough approach to heritage assessment and

management • Monitoring overseen by appropriately qualified persons

Page 13: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Great Eastern Highway Upgrade – Highlights

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Category/ Credit

Score Achievements

Innovation 1.7/5.0

• Warm mix asphalt was used on the project, applying innovative foaming technology to mix the bitumen into the asphalt mix

• This was a first for Western Australia, reducing energy use and GHG emissions

Page 14: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Whitsunday STP Upgrades

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Proponent: Whitsunday Regional Council

Contractor: Tenix

Infrastructure Type: Sewerage

Rating Type: Design

Location: Whitsundays, QLD

Capital Value: $45m

Start Date: May 2012

Practical Completion: May 2014

The upgrade of two treatment plants at Proserpine and Cannonvale are to serve growing communities and meet the most stringent effluent discharge requirements to protect the Great Barrier Reef. They will also provide benefits to the local community by reducing sewage overflows, and improving noise and odour.

Page 15: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Advancing sustainability in infrastructure

planning, procurement, delivery and operation.

Registrations

www.isca.org.au

Page 16: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Enlarged Cotter Dam

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Proponent: ACTEW

Contractor: Bulk Water Alliance (JHG, Abigroup, GHD, ACTEW)

Infrastructure Type: Water Storage & Supply

Rating Type: As Built

Location: ACT

Capital Value: $299m

Start Date: 2008

Practical Completion: 2013

An Enlarged Cotter Dam is being built downstream of the existing dam to increase the Cotter Reservoir’s capacity from 4GL to 78GL. The Enlarged Cotter Dam forms part of ACTEW’s continued response to ensuring a secure water supply for the ACT and to address drought, climate change and variability.

Page 17: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Proponent: GoldLinQ

Contractor: McConnell Dowell

Infrastructure Type: Light Rail

Rating Type: As Built

Location: QLD

Capital Value: $437m

Start Date: Jan 2012

Practical Completion: 2014

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Development of a light rail system that passes through key health, educational and residential precincts. Stage One works will carry passengers along the 13-kilometre light rail corridor, connecting them from the Gold Coast University Hospital and Griffith University (Health and Knowledge precinct) to the fast growing commercial, retail and recreational centres of Southport, Surfers Paradise and Broadbeach.

Gold Coast Light Rail (Stage 1)

Page 18: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Rous Head Industrial Park

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Proponent: Fremantle Ports

Contractor: Brierty Ltd

Infrastructure Type: Roads (Port Infrastructure)

Rating Type: As Built

Location: WA

Capital Value: $15m

Start Date: January 2012

Practical Completion: June 2013

Development of 27 hectares of reclaimed land at Fremantle Port, comprising the partitioning of the land into five lots of various sizes, construction of the access roads and installation of the various services to the boundaries of the lots to allow tenants to develop businesses servicing the port. One of the lots will provide a truck facility which will include truck parking bays and amenities for drivers.

Page 19: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

GatewayWA

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Proponent: Main Roads WA (MRWA)

Design and Construction:

Gateway WA Alliance (MRWA, Leighton Cont., Georgiou, AECOM, BG&E, GHD)

Infrastructure Type: Roads and Bridges

Rating Type: Design and As Built

Location: Perth, WA

Capital Value: $1bn

Start Date: November 2012

Practical Completion: 2017

This, the largest infrastructure project ever undertaken by Main Roads WA, is a billion-dollar project involving a major upgrade to the road network surrounding Perth Airport and the freight and industrial hubs of Kewdale and Forrestfield.

Page 20: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Googong Water Treatment Plant

Chemical Facility Upgrade

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Proponent: ACTEW Water

Contractor: AAT Alliance (ACTEW Water, Tenix)

Infrastructure Type: Water Supply

Rating Type: Design

Location: Googong,NSW

Capital Value: $6m

Start Date: September 2013

Practical Completion: April 2015

A new secure chemical unloading, bulk storage, handling and dosing facility shall be constructed to replace the existing systems which will be fully decommissioned and removed. The new facility will reduce workplace safety risks and hazards, comply with dosing requirements for public water, improve treatment processes and capacity, provide sufficient system redundancy and increase operational efficiency.

Page 21: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Wynyard Walk

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Proponent: Transport for NSW

Contractor: Thiess

Infrastructure Type: Cycleways and footpaths

Rating Types: Design and As Built

Location: Sydney, NSW

Capital Value: $286m

Start Date: September 2012

Design Completion: April 2014

Practical Completion: June 2015

Wynyard Walk is a new pedestrian tunnel within the Wynyard precinct of Sydney’s CBD. It will provide a world class, fully accessible pedestrian link between below-ground Wynyard station, the above-ground footpath networks, and the developing western corridor of the CBD and Barangaroo via a pedestrian bridge.

Page 22: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Elizabeth Quay

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Proponent: Metropolitan Redevelopment Authority

Contractor: Leighton Broad

Infrastructure Type: Wharfs, roads and utilities

Rating Types: As Built

Location: Perth, WA

Capital Value: $440m

Start Date: 2012

Design Completion: Q1 2014

Practical Completion: Q4 2015

Elizabeth Quay will cover nearly 10 hectares of prime riverfront land in the heart of the city. The project will create a magnificent precinct featuring a 2.7 hectare inlet surrounded by a split level promenade, shops, cafes, restaurants and other exciting entertainment venues.

Page 23: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Decision Making “The IS rating tool changed the way in which we have gone about procuring materials for the project. We are confident that the changes that we have made will lead the wider supply industry to more sustainable outcomes.”

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What Current Users Say

Page 24: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Direct Benefits and Outcomes “Designs that used less concrete, less steel and resulted in less embodied carbon emissions and reuse of existing onsite wastes and designs that addressed climate change risks.”

“Helped us to challenge the status quo in regard to design. We have identified opportunities to minimise material usage along with associated stakeholder and energy impacts.”

“The sustainability initiatives collectively add significant value at nil-marginal additional cost.”

“There was no additional cost to the project as a result of pursuing the rating.”

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What Current Users Say

Page 25: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Tendering

“The IS tool supported the establishment of rigorous tender requirements relating to climate risk, resource use, innovation, community initiatives and supply chain management. Accordingly our organisation will look to specify IS tool performance requirements within respective contract documents to assist with performance monitoring.”

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What Current Users Say

Page 26: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

IS Overview

• First and only national sustainability rating tool for infrastructure

• Measures sustainability performance across the quadruple bottom line (environmental, social, economic and governance)

• Voluntary

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Page 27: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

IS Rating Scheme

• (IS) rating tool comprises • Rating Tool Scorecard • Materials Calculator • Technical Manual

• Assessment process involves • Registration • Assessment support • Independent Verification • Certification and rating award

• Education and training programmes • IS Accredited Professional

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Page 28: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Infrastructure Types

Transport • Airports

• Cycleways & Footpaths

• Ports & Harbours

• Roads

• Railways

Communication • Communication Networks

Water • Sewerage & Drainage

• Storage & Supply

Energy • Electricity Transmission &

Distribution

• Gas Pipelines

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Page 29: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

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Scheme Coverage

Page 30: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Rating Types

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Planning

& Design Construction Operation

Design Rating Operation

Rating

As Built Rating

Project

Development

and Business

Case

Page 31: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Themes & Categories

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Themes Categories Themes Categories

Management & Governance

Management Systems Ecology Ecology

Procurement & Purchasing

People & Place

Community Health, Wellbeing & Safety

Climate Change Adaptation Heritage

Stakeholder Participation

Urban & Landscape Design Using Resources

Energy & Carbon

Water

Materials Innovation Innovation

Emissions, Pollution & Waste

Discharges to Air, Land & Water Workforce*

Land Economics*

Waste

Page 32: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Rating Levels

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Score Rating Level

< 25 Not eligible to apply for a certified rating

25 - 49 Commended

50 - 74 Excellent

75 - 100 Leading

Page 33: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Rating Process

Project/

Asset

registers Kick-off

Workshop Self-

assessment

Submit

assessment

Appeals panel

Independent

verification

Board certifies

rating

ISCA issues

and promotes

rating ISCA

Project/asset Identify

improvements

Legend

ISCA support

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Page 34: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

(Additional) design,

construction and

operating costs and

benefits of initiatives

Rating fees to ISCA

IS documentation costs

Rating Costs and Benefits

IS specific costs

Costs and

benefits of

infrastructure

sustainability

Benefits outweigh

costs

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Page 35: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

• Policy and strategy

• MRWA – all projects >$80m

• TfNSW TPD – all projects >$80m

• Transurban – all projects >$100m

• Thiess, John Holland, MacDow, Tenix and others

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IS in Road Organisations

Page 36: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

• A range of approaches

• From ‘how would you achieve a rating’

• To ‘achieve an Excellent rating with a minimum score of 65’ (and other detailed requirements)

• Propose to produce an industry guideline with industry input including Roads Australia

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IS in Project Procurement

Page 37: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

• IS Foundation Training rolled out across Australia

• 2 day course

• 340 IS Accredited Professionals

• 2014 courses: Perth 26-27 February 2014

– Sydney 29-30 April 2014

– Brisbane 17-18 June 2014

– Adelaide 26-27 August 2014

– Melbourne 21-22 October 2014

Training

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Page 38: Rick Walters, Infrastructure Sustainability Council of Australia - Sustainability trends in infrastructure project procurement

Advancing sustainability in infrastructure

planning, procurement, delivery and operation.

ISCA

[email protected]

[email protected]

www.isca.org.au

Thank you