Facility Perspectives v1#1 March 2007

facility

i n t e g r a t i n g p e o p l e – p r o c e s s – p l a c e

Building Controls& Management Systems

Business Objectives& Space Planning

Essential Safety Measures & Services

Volume 1 Number 1 April 2007

Offi cial magazine of the Facility Management Association of Australia Ltd Print Post Approved 340742 00155 $9.95 inc GST

Preview of ideaction

2007PLATINUM SPONSOR

A GLOBAL COMPANY WITH A LOCAL ETHOS

Ernst & Young PPP Report:Lifting our Game

Legal & Compliance:IR Laws Update

Indoor Ecology SIG:Workplace ProductivityMeasurement

ISS FACILITY SERVICES:A GLOBAL COMPANY WITH A LOCAL ETHOS

ISS Facility Services is one of the world’s largest facility services

companies. It has a global workforce of over 380,000 personnel in

49 countries and annual revenue in excess of AU$14 billion.

The rapid growth of the company over the past 20 years largely

stems from its ability to draw upon its global experience to deliver

high quality services in the many countries where it operates.

More recently, its success has been driven by its ability to provide

integrated facility services that provides its clients with service

solutions that are even more efficient through process and labour

optimisation.

ISS Facility Services entered the Australian market in 2002 through

the acquisition of Flick Pest Control, an Australian-renowned brand

name. Since then, ISS has purchased a broad range of companies

and has extended its capacity to provide a full scope of Facility

Services. In Australia, ISS is a multi-service organisation employing

over 22,000 people in the provision of facility management,

maintenance, cleaning, security, non-clinical support services for the

health industry, grounds maintenance and washroom services. It has

a customer base of more than 100,000 clients and annual revenue

of more than AU$700 million.

ISS is one of a handful of companies globally that offers a wide

range of service solutions that can be combined to meet all of a

customer’s service and support functions into one single solution.

This integrated approach creates synergies that maximise the

efficiency of service delivery for clients. It also enables ISS to improve

the quality of the services delivered because a single service provider

has greater control over quality assurance and can guarantee the

seamless delivery of services.

ISS is the larges provider of cleaning services globally and in

Australia. For more than 70 years, ISS has continually raised

the standard for cleaning services throughout the world. The

company’s solutions are always tailored to the individual needs

and requirements of different customers. ISS works closely with its

employees and suppliers to constantly developing new methods,

tools and materials to improve our cleaning services, enhance the

working conditions for our employees and minimise the impact of

our services on the environment.

ISS counts some of Australia’s largest organisations such as Telstra

Corporation, National Australia Bank and BHP Billiton amongst

its many cleaning clients in Australia. Since 1994 ISS has been the

primary provider for the NSW Government Cleaning Contract.

This is the world’s largest single cleaning contract within ISS and

provides services to more than 1,800 sites the majority of which are

Government’s public schools.

ISS Security is the second largest provider of security services in

Australia. Core Services for the Security division include general

security guarding, emergency response, consulting servicing,

operational risk management, development and implementation of

safety plans and a focus on service supply to the Australian Aviation

and Maritime Security Sector.

Charles BlinkworthCEO ISS Australia

CEO of ISS Australia, Charles Blinkworth, is excited about the

potential for organic growth and expansion in the Australian

marketplace for Facility Services.

“Through the integration of ISS’ various business acquisitions, ISS

can now provide a comprehensive facility services offering from both

a management and delivery perspective,” says Charles.

“2006 was a period of consolidation and alignment. 2007 and

beyond is about bringing international strategies, processes and

techniques to the Australian Marketplace in an effort to offer

compelling end-to-end service solutions.”

Charles, who has had over 20 years of experience in the Service

Industry, was appointed Chief Executive Officer for the ISS Group

in Australia, where he is now in charge of leading the Company’s

expansion program and championing its entry into new markets and

service areas.

Web: www.au.issworld.com

ISS Security is a major player in the Aviation Sector servicing 70%

of Australian airports, some of which include Perth, Adelaide and

Brisbane. Services provided incorporate passenger and baggage

screening, air-site patrols and frieght screening. ISS Security

remains aware of important factors including relationship building

with customers, experienced and competent supervisors and

management of ISS’ most important resource: personnel.

ISS Facilities Management Services is a division which provides

a management structure and operational solutions with a

management team to cater for any facility service requirement a

client might have.

One of ISS’ highest profile contracts in the Facility Management

division is with Amcor in South Australia. ISS supplies the company

with a substantial workforce on a 24-hour roster to manage and

operate a large bottle manufacturing facility, which produces over

1.2mil bottles a day.

ISS Grounds and Maintenance Services is a growing division within

the company and currently has 160 staff operating in NSW and

Victoria. Providing services for internal plants and floristry as well as

have strong experience base in landscaping design, construction and

maintenance, ISS is well set-up to provide full grounds services for

corporate customers. Specific services provided include Broad acre

mowing, turf construction and maintenance, high quality garden

maintenance and herbicide.

ISS Grounds and Maintenance Services provides services to such

clients as The City of Melbourne, ING and the Department of

Defence. Through strategic acquisitions and the ability to integrate

resources, ISS Grounds and Maintenance is continuing to grow in its

national client base

As part of Route Based Services, ISS Pest Control enjoys national

coverage and provides preventative and reactionary services for a

large commercial and domestic base. Service range includes control

of common pests and rodents, termite inspection and treatment and

feral bird control.

ISS Pest Control supplies services to business-to-business customers

with major sites including the Accor Group and the Star City Casino

Hotel in Sydney. Flick Pest Control, a subsidiary of ISS, provides

domestic services to over 51,000 homes across Australia and

possesses a reliable and well-known brand name that is renowned

for quality service and staff development.

ISS Washroom Services is one of only two national providers for this

service in Australia. With a business-to-business customer base of

28,000, ISS is continually looking for a more advanced product range

and efficiency to provide services for its customers. The service range

for ISS Washroom Services include sanitary and nappy disposal, air

fresheners, soap dispensers, urinal/WC sanitisers and paper products.

Key clients in Australia who have recognised ISS’ high quality services

in the Washroom Industry include Investa and Australia Post.

fa c i l i t y p e r s p e c ti v e s • 3

IN THIS ISSUE

20 Building Controls – An Industry in Crisis?

Facility Perspectives Melanie Drummond discusses the challenges facing the buildingcontrols industry – including the lack of people sufficiently skilled to commission,operate and maintain the systems on a long-term basis in Australia.

56 ESD & THE ENVIRONMENT Water Efficiency58 ESSENTIAL SAFETY MEASURES Building Update60 LEGAL & COMPLIANCE IR Laws Update77 PROPERTY FOCUS Lease Buy-Out Options79 PEOPLE 15 Minutes of FM Fame – Sally Henderson

16 PLANNING & INFRASTRUCTURE Lifting Our Game – Ernst & Young PPP Report

Infrastructure has commanded the attention of the national business community for the last few years, and it is set forincreased prominence in 2007.

20 COVER STORY Building Controls – An Industry in Crisis?

28 BUILDING CONTROLS Case Study – St John of God Hospital, Murdoch WA.

32 EVENTS FMA Australia ideaction 2007 Conference Preview

ideaction 2007 looks set to once again deliver a world-class learning and networking opportunity for facility managersthroughout the country with its major theme

“Striving towards a better environment – is it important?”

38 INDUSTRY EVENT Workstations of the Future iken’s annual competition challenges cutting-edge designers to come up withworkstations of the future.

40 SPACE PLANNING Business Objectives & Space Planning

As organisations seek to maintain their competitive edge in a rapidly changing marketplace, specialised needs increasinglyrequire specialised answers.

Facility Perspectives Max Winter and Melanie Drummond investigate.

45 FILING, STORAGE & RECORDS MANAGEMENT

FMA Australia - Aconex FIM Survey Findings For FM professionals, information management is a critical business enabler –Aconex provide some solutions.

48 STRATEGY & BUSINESS PLANNING Next Practice in CRE When Project Control Group (PCG) announced their key researchfindings in Corporate Real Estate practices and workplace accommodation strategies, Facility Perspectives was there.

64 FMA AUSTRALIA INDOOR ECOLOGY SPECIAL INTEREST GROUP

2007 – The Year of Indoor Environmental Quality Indoor or Facility Ecology and its impact on occupant well-being, itsproductivity assessment practises and information can deliver substantial savings to business.

70 ESSENTIAL SAFETY MEASURES

Adoption of AS1851 – Derek Hendry

Disability Discrimination Act Update – Rod Hunter

The Need for Documented Evidence of Compliance – Glenn Talbot

Regulars

Features

Cover Story

4 Editors Comment 6 FMA Chairman’s Message 8 FMA CEO’s Message10 Diary Dates 12 Fast Facts & News

facility

i n t e g r a t i n g p e o p l e – p r o c e s s – p l a c eVolume 1 Number 1 April 2007

EDITORS COMMENTS

Welcome to the first edition of the Facility Management Association of Australia’s veryown quarterly magazine, Facility Perspectives. We trust that the format of themagazine and its intended focus on people, process and place, at all FM levelsfrom strategic and managerial down to operational, will serve member and reader

interests well.Like most things to do with facilities management this information vehicle is the result of a

collaborative team effort between FMA Australia, the publishers Executive Media and the editorialcrew at WinterComms, and I look forward to hearing your thoughts on any improvements we canmake to your magazine.

ideaction 2007 and the FMA Excellence AwardsCentral to this issue of course, is FMA Australia’s premier annual event, ideaction 2007 and

we provide a glimpse of what you can expect of this year’s host of leading luminaries in facilitiesmanagement and related industries, as well as the activity packed agenda involving site visits, theChairman’s Welcome, the Gala Night, and the Closing Reception.

Be prepared to be challenged as a sizable portion of the Conference will be interactive withpanel sessions, workshops and plenary sessions designed to engage, encourage debate, andshare ideas.

Central too are the FMA Excellence Awards, your industry’s celebration of FacilitiesManagement Excellence in the workplace, and we remind you that entries are still open for theseprestigious Awards, and that the submission requirements have been streamlined to assist thosewho are time challenged. See the News section for more details.

Pleasant reading, and a reminder that the next issue will feature ESD & the Environment,Project Management and a comprehensive coverage of ideaction 2007.

Max WinterEditor – Facility Perspectives

A new perspective

Level 6, 313 La Trobe StreetMelbourne VIC 3000Tel: 03 8641 6666Fax: 03 9640 0374Email: [email protected]: www.fma.com.au

Front Cover: Sanofi AventisImage courtesy Project Control GroupPhotography: Simon Kenny PhotographyPh: 02 9456 5544

Published by:

ABN 30 007 224 204

Editor-in-Chief: Ric NavarroLayout + Design: Anthony CostinNational Sales Manager: Phil Haratsis

430 William StreetMelbourne VIC 3000Tel: 03 9274 4201Fax: 03 9329 5295Email: [email protected]: www.executivemedia.com.auOffices also in Sydney, Brisbane and Adelaide

Editorial: WinterCommsDirector & Editor: Max WinterNational Communications Manager: Melanie DrummondEditorial enquiriesTel: 02 4471 1252 or 03 8417 6577E: [email protected]

Stock Images: Photo Disc, Jupiter Images,Digital Vision, Creatas

Printed by Superprint Pty Ltd

The editor, publisher, printer and their staff and agents are notresponsible for the accuracy or correctness of the text ofcontributions contained in this publication or for theconsequences of any use made of the products, and theinformation referred to in this publication. The editor, publisher,printer and their staff and agents expressly disclaim all liabilityof whatsoever nature for any consequences arising from anyerrors or omissions contained in this publication whethercaused to a purchaser of this publication or otherwise. Theviews expressed in the articles and other material publishedherein do not necessarily reflect the views of the editor andpublisher or their staff or agents. The responsibility for theaccuracy of information is that of the individual contributorsand neither the publisher or editors can accept responsibilityfor the accuracy of information which is supplied by others. It isimpossible for the publisher and editors to ensure that theadvertisements and other material herein comply with the TradePractices Act 1974 (Cth). Readers should make their owninquiries in making any decisions, and where necessary, seekprofessional advice.

All rights reserved. Reproduction in whole or part, withoutwritten permission is strictly prohibited. © 2007 ExecutiveMedia.

Max Winter

At Facility Perspectives, we’re focused on integratingpeople, process + place.Subscribe now and keep up-to-date with the latest in facility management.

NAMEPOSITION COMPANYADDRESSSUBURB POSTCODEPHONE FAXEMAIL

2 YEARS $65- (inc GST & postage) 1 YEAR $35 (inc GST & postage) OVERSEAS SUBSCRIBER RATE IS $70AUD PER YEAR (postage included)MY CHEQUE TO EXECUTIVE MEDIA IS ENCLOSED PLEASE CHARGE MY CREDIT CARDVISA MASTERCARD AMEX

SIGNATURE EXPIRY

facility

i n t e g r a t i n g p e o p l e – p r o c e s s – p l a c eVolume 1 Number 1 April 2007

This document serves as a Tax Invoice once your payment has been successfully processed.Executive Media ABN 30 007 224 204. Your subscription will commence with the next available edition.Privacy: your personal details are used for the subscription of this magazine only. There are no refunds provided.

FAX TO: POST TO:

03 9329 5295 EXECUTIVE MEDIA PO BOX 256 NORTH MEBOURNE VIC 3051

✁

✁

ISSN 1834 6375

Green air conditioning?The A.G.Coombs Group provides

leading industry specialist service at

any stage of the building life cycle

to minimise the environmental impact

of your air conditioning systems.

DISEGNO COO9213

Contact the A.G. Coombs Group for expert service

and advice or visit www.agcoombs.com.au today.

Installation

Construction practicesto minimise installationwaste and emissions.

Commissioning

Integrated HVAC andcontrols commissioningfor Star Rated outcomes.

Maintenance

Enhanced services toimprove performance andlower operating costs.

Operation

Management, monitoring,reporting and verificationfor total performance.

Advice

Industry leading adviceto ensure the success ofESD initiatives.

Integrated Design

Life cycle design forlow ongoingenvironmental impact.

Technical Services

and ESD Advice

A.G.Coombs

Advisory

Bryon Price

03 9248 2700

Service and

Maintenance

A.G.Coombs

Servicing

Ian Taylor

03 9645 4066

Operations and

Management

Integrated Technical

Management

Con Bafitis

03 9248 2700

Projects and

Installation

A.G.Coombs

Brian Tregenza

03 9248 2700

6 • fa c i l i t y p e r s p e c ti v e s

FMA CHAIRMAN’S ADDRESS

Welcome to our first edition of FacilityPerspectives. I am very excited to be writingthe first Chairman’s message as we move into anew phase for FMA Australia and launch our

new official magazine for the association. As the name implies, the magazine will cover a range of

perspectives in facility management. So whether you areinvolved in planning and design; construction; operationsand maintenance; or upgrading and renewing, there shouldbe a perspective of interest to you.

Following the AGM in November last year, the new boardwelcomed Steve Taylor (Tungsten Group), Bryon Price (A GCoombs), and we are pleased to announce Naomi Nielsen’s(University of New England) appointment to the board asDirector for Education and Training, a position held by JonMcCormick until completion of his term in February. Wethank him for all his hard work and guidance, especiallywith the review of the accreditation program and hiscontinuing work with the FM Action Agenda.

My thanks also go to our immediate past ChairmanStephen Ballesty for all his work with FMA Australia, hiscontinuing work as Deputy Chairman of the FM ActionAgenda, and his ongoing commitment to the FM ExemplarProject: Sydney Opera House. Stephen’s valuablecontribution in these key areas over the past few years hasconsolidated the platforms necessary to move forward andI look forward to continuing working with our dedicatedboard of directors in shaping FMA Australia’s future and itscontribution toward furthering the objectives of thefacilities management industry.

Moving forward into our next phase means ensuring wehave a solid plan for the next three to five years that will becontinually revisited and revised as FMA Australia’sobjectives are met and new challenges arise. The board hasmet for a number of days during March to formulate thestrategies required to develop the long term vision for theAssociation. We are grateful and delighted with thecontribution the national committees are making inassisting the board with the forward planning and activitiesthat are currently under way.

Our national committees continue to work diligently ona range of priority areas for the Association. Themembership committee has been investigating new

membership packages for non-members who haveattended a number of activities. The communicationscommittee has been working on the development of theFMA Australia website and this, FMA Australia’s very ownmagazine. We are delighted to announce that theinnovation and best practice committee will hold its firstmeeting in April. Our conference committee has nowfinalised the activities for ideaction 2007 as outlined in thisedition and is also available to you via our website atwww.fma.com.au.

It is a great pleasure to invite you to participate in theFacility Management Association of Australia’s 18th NationalConference, ideaction 2007 “Striving towards a betterenvironment – is it important?” to be held at spectacularDarling Harbour, Sydney. 9-11 May 2007.

ideaction is the premier Facility ManagementConference in the Asia Pacific region and as such I amdelighted to commend to you a highly interactive programwith international and national speakers covering a varietyof topics and presentation styles. The highly effectiveinteractive sessions in particular allow delegates toparticipate in panel discussions and to ask questions ofkeynote presenters.

Last year’s conference was accompanied with thereturn of the extremely popular expo and we are delightedto welcome the many organisations that have contributedto the growth of this year’s event. Our expo hall will onceagain double as our refreshment centre and also beavailable for meetings if you need to find a quiet corner toclose that deal!

As in previous years our program commences with thechoice of site visits and this year’s site visit luncheon willbe held at the impressive Telstra Stadium. The first eveningconcludes with the Chairman’s Welcome Reception inmagnificent Darling Harbour followed the next evening bythe Gala Dinner at the majestic Sydney Town Hall, whichincludes the presentation of the Industry Awards forExcellence. From personal experience, this night will not beforgotten by those who attend!

I look forward to hearing your thoughts on themagazine and welcoming you to the FMA Australia NationalConference, ideaction 2007 Sydney, in May.

Andrew McEwan – Chairman, FMA Australia

Andrew McEwan

Phot

ogra

phy:

Mel

bour

ne H

eads

hot C

o.

Chairman’sMessage

Australia’s leading

FM Recruitment Specialists

www.dmgroup.com.au

Level 3, 143 Charlotte Street, Brisbane QLD, 4000Contact: Adam Kelly: (07) 3105 2311 email: [email protected]

GROUP


CEO’S MESSAGE

As CEO of FMA Australia I am delighted to have theopportunity to communicate with the FacilityManagement industry through our new quarterlymagazine. Since my appointment in January this

year I have met with many of our state representatives aswell as many of our members. It is a very exciting time forFMA Australia as we move into a new and exciting phase ofour evolution.

Many of our members will be aware of our new lookwebsite www.fma.com.au which now provides memberswith the capability to purchase publications, register forbranch events and training programs and up date theirpersonal membership files online. We are confident thewebsite assists our state branches with advancednotification of up-coming events as well as assisting thosemembers that travel interstate with the opportunity toattend functions they may not have been otherwise aware.The high calibre of events organised and run by ourbranches is very impressive as highlighted by the excellentnumbers attending. I congratulate the branches onorganising the terrific line up of speakers, and urgemembers to visit our website and see the events scheduledin your state/territory.

Chairman, Andrew McEwan mentioned in his messagethe strategic planning session the board has undertaken inMarch. This is an extremely important function of the board,the outcome of which will enable the whole organisation tomove forward with confidence, having settled on a strategic

direction deemed to be in the best interests of theAssociation and the FM industry at large.

Another significant project currently underway is anupdate of the Facilities Management – Statistical Profile ofthe Industry report. This project, which relies onparticipation from the industry, concerns an analysis of theeconomic contribution of the facilities managementindustry to the Australian economy. We thank thoseorganisations that have submitted their completed surveyforms and encourage those in the process of completing, todo so as a matter of priority. The project is being undertakenby Access Economics on behalf of FMA Australia and is inaccordance with one of the FM Action Agenda’s keyobjectives.

The recent online member survey provided excellentfeedback, confirming that high on the priority list is theintroduction of a greater range of third part memberbenefits. To that end we have a number of prospectivebenefits under review that will be released for membersconsideration over the coming weeks.

Finally I trust members and our other readers of FacilityPerspectives, the official magazine of FMA Australia, find itinformative, well presented and covering the articles youwant to know more about. Your feedback is important soplease let us have your comments.

Kind regardsDavid Duncan – Chief Executive Officer, FMA Australia

David Duncan

CEO’s Message

Phot

ogra

phy:

Mel

bour

ne H

eads

hot C

o.

Relocating your business?Security an issue?

Movers and Shakers are the first

Australian Company to adopt the

“world’s best practice” of using

ergonomically designed, lockable,

reusable and stackable security

crates. This is a vastly superior and

cost effective alternative to using

cardboard boxes.

BENEFITS OF SECURITY

CRATES OVER CARDBOARD

SYSTEMS -

SECURABLE:

Unlike a non secured cardboard box,

each crate can be individually locked

using numbered security seals.

ENVIRONMENTALLY

FRIENDLY:

Crates have been designed to be a

reusable and returnable form of

packaging. All recycled cardboard

boxes have a limited life span, have

silicone content and generally end up

as toxic land fill.

CRUSHPROOF:

Made of 100% Recyclable High

Density Polypropylene. Crates will not

collapse, split or bend offering

superior protection to items being

relocated.

ERGONOMIC:

Integrated handles at either end make

them easier to lift than a flat bottom

carton that offers no lift points,

reducing the risks of possible OH&S

claims.

ECONOMIC:

Minimize downtime. Simply place on

a dolly, open the lid and fill. Place the

next empty crate on top and repeat. No

productive time lost assembling,

taping closed, then later breaking

down, flattening and stacking

unsightly cardboard boxes.

USER FRIENDLY:

With optional hang rails, files are

moved in a hanging state. They are

lightweight and easy to handle. Unlike

a cardboard box they require no

taping.

FITOUT FRIENDLY:

Manufactured with rounded edges and

no sharp corners, Movers and Shakers

crate systems provide a relocation

solution minimizing the overall risk of

damage to your new fit-out or existing

office.

EFFICIENT:

Movers and Shakers crate system

ensures ease of use, speed, safety,

security and efficiency at all stages of

your relocation.

Movers and Shakers are a leading

Australian Owned Company with

offices nationally. They are prime

movers in the office, library and

industrial relocation field. Leading the

field with investments in revolutionary

state of the art technology to

streamline and secure your next move.

stackable crates security tagged suspension files

APRIL 200711 NSW Lunch18 QLD Site Visit20 VIC Mega Lunch – Crown26 ACT Branch Forum

MAY 20079-11 ALL ideaction at Sydney Exhibition & Convention Centre23 QLD Breakfast23 NSW South Coast Sub-Branch Lunch24 NSW Hunter Region Sub-Branch Lunch 24 WA Site Visit25 VIC Annual Golf Day, Green Acres Golf Club – Kew29 NSW Site Visit30 NSW FMA Luncheon seminar series – International Speaker

Daniel Ough;Sandpiper Consultants Dubai – “What is anOperational Readiness Program”

31 ACT Branch Site Visit

JUNE 20071 VIC FMA Luncheon seminar series – International Speaker

Daniel Ough;Sandpiper Consultants Dubai – “What is anOperational Readiness Program”

6 QLD FMA Luncheon seminar series – International SpeakerDaniel Ough;Sandpiper Consultants Dubai – “What is anOperational Readiness Program”

7 QLD Networking Forum13 NSW Lunch19 NSW Site Visit20 ACT Branch Site Visit20 QLD Lunch22 VIC Lunch, PPP’s – RACV Club


FMA EVENT CALENDAR

FMA Australia2007 Diary Dates

9-11 May ideaction at SydneyExhibition & Convention Centre

9-11 May ideaction at SydneyExhibition & Convention Centre


JULY 200718 NSW Lunch18 QLD Site Visit24 WA Site Visit26 ACT Branch Forum27 VIC Lunch – RACV Club31 NSW Site Visit

AUGUST 20072 NSW Hunter Region Sub-Branch Lunch8 NSW Lunch9 QLD Networking Forum22 NSW South Coast Sub-Branch Lunch24 VIC MCG Site Visit & Luncheon – MCG28 NSW Site Visit30 ACT Social Dinner31 QLD Annual Golf Day

SEPTEMBER 200712 NSW Lunch19 QLD Innovation Forum20 WA Site Visit21 VIC Lunch – Crown25 NSW Site Visit27 ACT Site Visit

OCTOBER 200710 NSW Lunch11 QLD Networking Forum19 VIC Lunch – Crown24 QLD Site Visit25 ACT Annual Golf Day30 NSW Site Visit

NOVEMBER 20071 NSW Hunter Region Sub-Branch Lunch6 NSW Lunch6 QLD Lunch23 VIC Lunch – RACV Club23 WA Annual Golf Day27 NSW Site Visit28 NSW South Coast Lunch29 ACT Branch Lunch

DECEMBER 20075 NSW Christmas Lunch 7 QLD Lunch14 VIC Christmas Lunch – Crown

Solar Gard® Window Film will significantly reduce the transmission of solar heat through glass windows.

Solar Gard helps cut energy costs associated with air conditioningin homes and commercial buildings.

Solar Gard Reduces Energy Costs• Up to 81% solar energy reduction

• Up to 93% glare reduction

Improve internal living and working conditions by reducing heat and glare and let Solar Gard show you how it will pay for itself.

AD

wor

ks 1

0850

®Registered trademark of Bekaert Specialty Films Australiawww.solargard.com.au

Free quotations - phone (02) 8825 6677for your local installer

FMA EVENT CALENDAR


FAST FACTS + NEWS

The University of Sydney

Facilities Management Programs

Facilities Management

Double Masters in Commerce and Facilities Management

Design Science (Facilities Management) double degree with Building Design, Building Services, Sustainable Design or Illumination Design

Strategic Facilities ManagementOrganisational Analysis & BehaviourEnergy Requirements in Commercial Buildings(

Contract and Project ManagementComputer Aided Facility Management

www.arch.usyd.edu.au/FS/postgrad/fac_mgmtFor more information:Sue Lalor on 9351 2686 or [email protected]

Faculty of Architecture Design & Planning

Iken 1300 554 748 [email protected] www.iken.com.au

Winners of Iken’s Workstation DesignCompetition take prize

The recent winners of Iken’s workstationdesign competition (see article later in thisissue) were awarded with a 7 day trip toOrgatec, Cologne and a stopover in Japan to visitthe Okamura Head office.

Dan Cox (Carr Design) and Nick Scherpel-Obbelode (Group GSA) travelled along withMatthew Power and Meena Vivek from the IkenTeam on an invaluable trip seeing the latestoffice furniture from around the Globe atOrgatec.

Highlights from the fair included Orgatec’stheatrical experience of workplaces in the future– projected environments that allow viewer’s to“IMMERSE” themselves in a remote location andcolour change of their environments dependedon their moods.

Both designers agreed that the opportunityto attend the fair in Cologne and an educationaltour of the Okamura factory in Japan was highlyunique and it gave them a chance to see theentire product process from manufacturing toshowroom floors.

Designers Jet to Europe & Japan


FAST FACTS + NEWS

Huge waste in CentralisedGenerated Energy

Information resource:CSIRO media release

The use of microturbines will enable offices,factories and workplaces to generate their ownelectricity from natural gas and cut losses andgreenhouse emissions significantly, sayresearchers from CSIRO Energy Technology.

A greenhouse gas reduction demonstrationproject using a 60 kW microturbine (a small gasturbine) in conjunction with a desiccant-baseddehumidification system is being put in placefor Hornsby Council by scientists from CSIRO.

The initiative, which is partly funded by theAustralian Greenhouse Office under theCommonwealth Government’s EmissionsReduction Incentive Program, will cut output ofgreenhouse gases by 250 tonnes a year.

The project involves re-engineering the airconditioning system in Hornsby Central Libraryto exploit waste heat (known as co-generation)from a 60 kW gas-powered microturbine, whichalso provides electricity to the building.

In summer, waste heat from the turbine willbe used to dry incoming air, which willconsiderably reduce the amount of energyneeded to cool the air. In winter, the waste heatin the turbine exhaust will be used indirectly toheat the library requiring little or no extraenergy.

This will take a large load off the existingelectrically-driven heating, ventilation and airconditioning (HVAC) units at Hornsby CentralLibrary. It makes use of more than 70% of theprimary fuel energy input to the generationprocess through the energy saving strategies ofcogeneration and dehumidification to achievehighly-conditioned air.

CSIRO project leader, Dr Rob Helstrom, iskeen to see distributed energy generationsystems like this adopted more widely inAustralia.

“It makes sense for all councils, shoppingcentres, hospitals and commercial buildings tolook very seriously at installing technologies

that will generate power locally,” he said. “It willsave them money - and they will help theenvironment in the process.”

“There is huge waste in the way electricityis generated centrally. By the time it reaches us,more than two-thirds of the embodied energy inthe coal has been lost. Of the energy thatarrives in our homes, businesses and factoriesa further 50 per cent is lost due to wasteful

equipment and practices. “Distributed generation brings the power

station close to where the electricity is used. Byusing the waste heat (an inevitable by-productof electricity generation) for heating or cooling,the raw fuel will be much more efficiently used,and huge savings in greenhouse gas can bemade.”


FAST FACTS + NEWS

FM Excellence in the Spotlight

Have you entered the 2007 FMA AustraliaAwards for Excellence?

Everyone wins with the FMA Australia time-challenged recognition awards!

Every year at the ideaction Annual GalaDinner, FMA Australia recognises excellence inthe facility management industry by rewardingprofessional and personal excellence in theirfield.

FMA Australia has streamlined thesubmission process to conform with 21stCentury requirements to recognise the fact thefacility managers more than ever are required to

do more with less, and are consequently timechallenged.

So while the judging standards are stillmaintained at their usual high level, this yearthe requirements for entry submission havebeen eased to make it a bit easier for time-poorfacility management teams and individuals toparticipate.

Facility management teams and individualsnow are able to make submissions of up to3000 to 5000 words outlining theirachievements, subject to the award categorysubmission criteria available on the FMA

Australia website. So now that you have your time-challenged

recognition award, make sure you enter! Deadline is early April.

For more information on the eligibility andsubmission criteria for the awards outlinedbelow, please visit the FMA Australia website:www.fma.com.au and follow the links tothe awards, or contact FMA Australia Hotlineon ph: 03 8641 6601.

About the Awards

For further information visit www.fma.com.au. Entries close early April.All awards will be presented at ideaction Gala Dinner, Thursday 10 May 2007.

FMA Australia & Rider Hunt Terotech Industry Award

The FMA Australia and Rider Hunt Terotech Industry AchievementAward is Australia’s premier award for facility management strategy andpractice. The award recognises excellence in a facility managementprogram or idea, which demonstrates an outstanding level of innovationand/or success.

The award will showcase a visionary facility management projectwhich has positively contributed to an organisation’s success; achievedstrategic business objectives and contributed to improved financialoutcomes across the life cycle of the facility.

FMA Australia & Transfield ServicesEnvironmental Achievement Award

The FMA Australia and Transfield Services Environmental AchievementAward recognises efforts by individuals or teams within the FM industry,from researchers through to facility operators, who have made a positivecontribution to the knowledge, practical application and communication ofstrategies to improve the environmental performance of their facilities.

The recipient of this Award will have demonstrated the value of theirinnovations/improvements to the community through environmentaloutcomes in the FM industry. The innovations and/or improvement willhave arisen from research or an initiative and will be substantiated bysupporting documentation or independent verification of the outcomes ofthe initiative or in the case of research, the key findings of the research.

FMA Australia & Tungsten Young Facility Manager of the Year Award

The FMA Australia and Tungsten Young Facility Manager of the YearAward recognises the importance of encouraging and developing theskills and professionalism of talented young FM practitioners who are thekey to the future of our industry.

The recipient of the award will be an exceptionally capable FMpractitioner who has demonstrated professional development of theircompetence, an overall level of excellence in their work and a capacity tomake a significant contribution to their organisation’s outcomes.

FMA Australia & Programmed Maintenance ServicesFacility Manager of the Year Award

The 2007 FMA Australia and Programmed Maintenance ServicesFacility Manager of the Year Award recognises Facility Managers in eachstate who demonstrate a clear vision for innovation and who exhibits andis able to illustrate the strategies they have put in place to implementgrowth.

Each state/territory winner of the FMA Australia and ProgrammedMaintenance Facility Manager of the Year will be finalists for the NationalAward to be presented at the Annual Australia Gala Dinner.

Supported by


PLANNING & INFRASTRUCTURE

Lifting our gameAustralia needs a new approach to infrastructure deliveryOne of six articles in Ernst & Young’s 2007 edition of Business Agenda, Lifting our game argues that Australianeeds a new approach to infrastructure delivery.

Sitting front and centre of both public and private agendas, infrastructure hascommanded the attention of the national business community for the last fewyears, as highlighted in Business Agenda 20051, and it is set for increasedprominence in 2007.

Commentators agree that Australia needs a national, coordinatedapproach to removing the constraints that surround developingthe capacity for delivering future infrastructure. However,

it is becoming increasingly apparent that unless investors can see along-term, national pipeline of infrastructure projects and have confidencein the government’s ability to make good on its role in those projects,Australia’s infrastructure market will not be able to attract the investmentit so desperately needs. This will present a significant challenge toAustralia’s 15 years of unbroken economic growth. As the Hon. Mark Birrell,Chairman of Infrastructure Partnerships, says, “If we are to retain thenation’s economic prosperity then fresh infrastructure is probably thehighest priority.”

According to the Business Council of Australia’s (BCA) Infrastructureaction plan for future prosperity, “one of the most significant andinterrelated risks for the economy is the adequacy and capacity ofAustralia’s economic infrastructure to support Australia’s continued growthand productivity ... ”2

In fact, research commissioned by the BCA shows that implementing acomprehensive infrastructure reform program will deliver an extra two percent in additional economic output for Australia for five years.3 On the otherhand, this research indicates the cost to the economy if governmentdelays implementation could exceed $10 billion a year.

For example, a strained transport system means the congestion costsof freight alone, is projected to increase from $13 billion to almost $30billion per annum by 20154, with the length of congested road forecast totreble within the next 20 years.5 At the same time, 80 per cent of oururban population lives with water restrictions6; while, on current energygeneration plans, NSW will be below reserve generation standards by 2009and Queensland by 2010.7 Little wonder, at its meeting in February 2006,that the Council of Australian Governments (COAG) elevated the challengeof fixing Australia’s infrastructure shortfalls to an issue of nationalimportance requiring COAG’s ongoing attention.

Contrary to popular belief, Australia’s large infrastructure needs arenot the result of high economic growth or scarcity of resources. It is due to“convoluted institutional arrangements and poor policy choices” as theBCA’s Plan puts it.8 Moreover, it is due to artificial capacity constraints anda short-term approach to infrastructure planning and delivery.

Everyone is aware of the need to invest in infrastructure and there ismoney to solve it. For example, in response to the resources boomclogging up the rail and port systems, Queensland will invest $40 billion,NSW $45 billion and Victoria $10 billion just on transport alone.9 Beyondgovernment funding, Australia’s private equity market is awash with cashand full of players happy to invest in infrastructure – a prime investmentopportunity for larger institutional investors such as superannuation fundslooking for secure long-term revenue streams.

As David Roseman, Executive Director, Macquarie Bank and Head of its

infrastructure advisory group for Australia and New Zealand, explains, “Wefocus on assets that have … secure revenue streams, and a long-termgrowth story.” Ernst & Young’s Global Utilities Leader, Ben van Gils, pointsto the market being awash of opportunities, citing diversification and long-term rewards as possible lures: “The sheer scale of infrastructureinvestment needed for utilities presents enormous opportunities forinvestors around the world. They have recognised the potential ofinfrastructure as an emerging asset class that not only offers regulated,long-term investment returns, but also gives them opportunity to diversifytheir portfolio, leading to better risk management.”

This point is not lost on Australia’s superannuation funds, currentlypouring billions of dollars into US transport systems and European utilities.

Coordinate infrastructure planning and provisionA crucial element to getting infrastructure right is greater coordination

of infrastructure provision. In February 2006, COAG noted progress inimplementing infrastructure measures agreed at its 2005 meeting,



including: “a commitment to complete all 24 corridor strategies underAusLink by 30 June 2007 at the latest; extending the corridor strategies;undertaking a stocktake of logistics chains of national importance; andestablishing a ‘one-stop shop’ in each jurisdiction by 30 June 2006 forsignificant development projects.”10 COAG also noted each jurisdiction hadagreed to provide five-yearly infrastructure reports with a strategicoverview of existing infrastructure, a pragmatic outlook for infrastructuredemand and a forward looking strategic assessment of future needs.

Not only will this type of national coordination allow investors to seethe size of the market, it will deliver a far better result. The detrimentaleffects of piece-meal infrastructure development are well known: thecommunity ends up with expensive outcomes that don’t always promisequality.

At the State level, NSW and Queensland are already moving to take astrategic and long-term view of infrastructure, with regional plans thatestablish infrastructure priorities within a 20-year timeframe. Assumingbipartisan support, this will align the infrastructure development activitiesof all State agencies and local governments, allowing projects that meetthe plan’s requirements to be fast-tracked through all levels of government.It also means governments can now zone the so it will be available whenthey need it.

Reflecting this new focus on co-ordinated infrastructure delivery, theBeattie Government announced a new Department of InfrastructureDelivery in December 200611 – a move that should be mirrored in everyState and Territory and also at the Commonwealth level. In creatingregional and national plans, governments need to ensure their response isnot a knee-jerk reaction to a current trend such as the resources boom.

If predictions of a slow down are true, then transport infrastructureprojects that come on line as demand for resources slackens will createexpensive latent capacity. Similarly, the Stern Review cautions of the risksof governments locking themselves into high carbon infrastructure, whichwill make emissions cuts in the future much more difficult to achieve.12

Create an appropriate regulatory regime to send thedesired investment signals

Currently, the regulation governing Australia’s infrastructuredevelopment is highly fragmented, with varying powers vested in manydifferent regulators. The resulting inconsistency creates uncertainty thatincreases the level of risk for would-be investors, thereby posing apotential deterrent for investment.

“Given the robust investment climate, microeconomic reform isurgently required to give Australia a coordinated, concise and wellunderstood regulatory regime,” says Paul Laxon, Partner, Ernst & Young,Tax.

“COAG’s February 2006 Competition and Infrastructure ReformAgreement, which aims to reduce regulatory uncertainty and compliancecosts for owners, users and investors by providing a simpler andconsistent regulation system for nationally significant infrastructure, is animportant step forward.” Similarly, government should encourage privatesector involvement by not overregulating them. “When they don’t ownthem, the tendency is to regulate more heavily,” says Mark Harper,President of the Australian Pipeline Industry Association.13

Laxon says that Federal Treasury is currently reforming the draconiananti-tax avoidance measures that result in added costs for the privatesector and for some, create a deterrent from getting involved in PublicPrivate Partnerships (PPPs): “These long overdue reforms should create aworkable regime for both the private sector and Government. It has been along struggle but it will hopefully be worth it in the end.”

Maximise the value of private sector delivery While private sector funding is likely to remain a relatively small

component of the total funding needed, it is an important piece of theinfrastructure puzzle. Despite the media focus on high profile PPPs such asthe Sydney Cross City Tunnel and Spencer Street Station in Melbourne,

PPPs can offer government a viable alternative for efficiently andeffectively delivering quality infrastructure solutions to support the

community. “What the media didn’t mention was that, in both cases, therisk transferred to the private sector was maintained. The tax payer didn’tfoot the bill for the blow out,” says Ernst & Young’s Bill Banks, Partner andHead of Project Finance Advisory.

“The private sector delivers early and on budget because executiveshave financial incentives to make that happen. Does anyone really imaginethe Westlink M7 would be opening eight months early without the deliveryskills of the private sector?”

Because the private sector’s financial return is directly related toproject success, its level of due diligence and rigour is much higher.Moreover, that project success is measured over 30 years, not two. Theprivate sector doesn’t just build infrastructure, it lives with theconsequences of that infrastructure for decades. Thus, the communitybenefits from a provider working for very high stakes that are tied to thelong-term success of the project.

That said, government needs to be careful to create contracts thatallow the private sector to do what it does best. For example, the NorthSouth Bypass Tunnel in Queensland minimised bid costs to all parties anddelivered a solution well below the cost of government delivering theproject and with a far more innovative design.

“The North South Bypass Tunnel was a very well-run, robust andtransparent procurement process. The government met every projecttimeline and engaged with the private sector every step of the way,allowing bidders to road test their solutions as they went. As a result, theprivate sector could focus on delivering their bids and the government gota value for money solution,” says Banks. From the perspective of theMayor of Brisbane, Campbell Newman, the winning North South BypassTunnel submission had “superior financial, technical, environmental, trafficand community outcomes to those proposed in the North South BypassTunnel reference project.”14

According to Peter Hicks, Project Director of the winning RiverCityMotorway Consortium, and General Manager Infrastructure Investment,Leighton Contractors, the North South Bypass Tunnel bid delivered aninnovative solution by allowing bidders room for flexibility. “The contractgave us room to be creative allowing us to build innovation andengineering best practice into the bid,” he said.

Banks believes that “governments need to develop more creativecontracts and make contracts less prescriptive: output instead of inputdriven. The private sector can’t be pushed into a tight mould for easiercomparison. To ensure a better outcome for all parties, government needsto encourage innovation”.

Develop market capacityThe capacity of Australia’s construction industry is currently

constrained by a skills shortage and a prohibitive procurement processthat cuts overseas players out of the game. To improve our home-grownsupply of construction skills, industry needs to continue to engage withuniversities and TAFEs to help promote and support student entry toconstruction qualifications that will help fill the skill gaps.

Australia also needs to change its procurement requirements tofacilitate overseas players to enter the market. Currently, bidders arerequired to demonstrate local experience and local knowledge ofregulatory conditions “Building tunnels isn’t a location-specific discipline. Ifyou’ve built them in the US and Europe, you can build them in Australia,”says Banks, pointing out that, in every other country, internationalconstruction companies deal with the issue of getting across localregulations by employing a local advisor.

Educate the communityFinally, Australia needs a paradigm shift in community attitudes to the

real cost of infrastructure, which some take for granted. “The communityneeds to be educated in order to accept it has a responsibility to pay forinfrastructure, whether through taxes, or more direct ‘user pays’ chargessuch as road tolls, to fund such infrastructure,” says Laxon. Thecommunity must also accept it can’t depend on government alone to fundinfrastructure.


Macquarie Bank’s Roseman says, “The traditional view in Australia andother countries has been that governments should finance infrastructureas a matter of course. But the reality is that governments are constantlyrunning short of money for this purpose.” This leaves private investorsplaying an increasingly important role in infrastructure development,including social infrastructure such as schools and hospitals – a particularpain point for media commentators.

However, Ernst & Young’s Banks says, with properly executedcontracts, the community has nothing to fear in privately operated socialinfrastructure. “The public distrusts private sector involvement becausethe private sector is there to make money. However, we can structure oursocial infrastructure contracts so that the private sector only makesmoney if we get good community outcomes, like better education,improved retention of teachers and well-maintained schools. I don’t thinkthe community will mind the private sector making money if it doesn’tcost any more tax dollars and the results are better all around,” he says.

Shifting mindsetsTo support economic growth, Australia needs a national, coordinated

approach. This will involve coordinating long-term infrastructure planning,removing the inherent barriers of the regulatory regime and developing thecapacity of our construction industry. Most importantly, it will require ashift in both the political and community mindsets to embrace local andinternational private sector investment.

About Ernst & YoungErnst & Young is a global leader in professional services. The firm’s110,000 people in 140 countries pursue the highest levels ofintegrity, quality and professionalism in providing a range ofsophisticated services. In Australia, Ernst & Young has over 4,000

partners and staff based in seven offices and is a trusted advisor tomany of the country’s leading organisations. To obtain a copy ofErnst & Young’s Business Agenda 07, in PDF format, go tohttp://www.ey.com/global/content.nsf/Australia/Home

1 Ernst & Young, Business Agenda, January 2005, page 10.

2 Business Council of Australia, Infrastructure action plan for future prosperity, Melbourne,

March 2005, page 3.

3 Business Council of Australia, 2006 Annual Review, page 22.

4 Business Council of Australia, Infrastructure action plan for future prosperity, op. cit., page

12.

5 Ibid, page 14.

6 Water fight: fury over $1.5bn plan, The Age, 13 September 2006, via Factiva, © VNU

Business Publications Limited.

7 Business Council of Australia, Infrastructure action plan for future prosperity, op. cit., page

10.

8 Ibid, page 6.

9 United to ride boom in projects, The Australian, 13 October 2006, via Factiva, © VNU


10 Council of Australian Governments, 15 June 2006, Council of Australian Governments

Meeting 10 February 2006, 15 December 2006,

http://www.coag.gov.au/meetings/100206/index.htm.

11 New infrastructure department created, The Australian, 6 December 2006, via Factiva, ©

VNU Business Publications Limited.

12 The Stern Review and the energy industry, Mondaq Business Briefing, 28 November 2006,

via Factiva, © VNU Business Publications Limited.

13 Caution on pipeline regulation, The Australian, 16 October 2006, via Factiva, © VNU


14 Brisbane City Council, Lord Mayor announces successful NSBT tender, Queensland, 27 April

2006.

O’Brien service.There’s nothing remotely like it.Whether it’s for a single property or multiplesites across the state, no one has moreexpertise in glass replacement than O’Brien.

And with over 80 years experience, it’s littlewonder why Facilities Managers acrossAustralia depend on us for all their glazing.

For immediate service or to learn more abouthow we can support you…

Our unique E-link service gives you emailed

updates on the progress of a job.

When it comes to glass replacement,

we’re ready for any job at anytime.

Regardless of the type of glass, we can

replace it; including energy efficient glass.

With more than 260 service vehicles

we have you covered — anywhere.

We can even lodge your claim and take care

of all the insurance paperwork.

Our workmanship is fully guaranteed (for life) and

meets, or exceeds, Australian Standard AS1288.

Call 13 16 16 24 HOURS7 DAYS


COVER STORY

Building controls –


COVER STORY

Facility Perspectives Melanie Drummond discusses the changing face of thebuilding controls industry, and examines the issues that have emerged sinceDirect Digital Control (DDC) began replacing pneumatic systems in the 1980s.While building control systems boast the latest in innovative software to operatethem, there is clearly a distinct lack of people sufficiently skilled to commission,operate and maintain the systems on a long-term basis in Australia. Do Australia’sfacility managers need sufficient skills-based courses targeted for the controlsindustry, similar to what’s on offer in Britain and the United States, or is theAustralian market simply too small to show any strategic leadership? What is theway forward for an industry some say is in crisis?

It’s not until the lights fail, swipe cards won’t work orthe air conditioning grinds to a halt that theconsequences of not having sufficiently operated andmaintained building control systems are forced into

the spotlight by building occupants. Building control systems, otherwise known as the

‘central nervous system’ of a building, are designed tooperate the mechanical or electrical devices that help turnon or off the various procedures which standardise thecontrol of specific mechanisms.

When running smoothly, control systems are one ofthe key contributors to a building’s energy efficiency, butwhen problems with the operations or maintenance ofcontrol systems occur it can lead to serious ineffective useof energy resources.

A control system may initially be installed correctly butany number of changes can and will occur in the building’senvironment – occupancy, human interference, alterationof operating hours and climatic changes can all cause a‘drift’ in the control systems which over time results in thesystem operating out of balance and causing extremeenergy inefficiency.

It’s becoming an increasing concern that controlsystems can run, often unnoticed, at less than maximumefficiency for years before a facility manager is made aware

of what the system is costing them in wasted energycapital. It’s entirely possible for an air-conditioning systemin a commercial building to be wasting anything up to 40percent of its energy every day while occupants still findthe climate completely satisfactory.

Facility managers who lack an in-depth understandingof their building’s complex control systems can fail tointerpret the day-to-day data which provides impactanalysis of the building’s constantly changing environmenton the control systems.

It would seem that there are very few situations wherethe changes that inevitably occur or are made to buildingcontrol systems, (either through software, hardware orhuman impact), are actually monitored to reduce a “drift” inthe system.

When the ‘drift’ is finally bought to attention of afacilities manager, the situation can be so serious that thetemptation may be to replace the ‘old’ software with thelatest on the market, and with no further understanding ofhow to maintain the high-tech systems, a facility managercan find themselves in the same position in another five –ten years time.

Although building automation and controls technologyis highly capable, the lack and quality of resources in theindustry means highly technological systems may oftenprove overly complex, overly costly, and under utilized forfacility managers.

There may often be little applied self checking orintuitive use of the data available to self correct or warn ofsymptoms that indicate energy wastage orperformance/efficiency short comings. These systemshave the ability to be very smart but they must be matchedto their buildings by professionals that understand how thebuilding systems operate and the range of facilitiesoutcomes that are required.

Increasingly those who commission, install and drivethe control systems that operate HVAC controls, securityand access controls, asset tracking and locating, fire alarm,life safety and smoke controls come from a computing or

These systems have theability to be very smart butthey must be matched totheir buildings byprofessionals thatunderstand how the buildingsystems operate and therange of facilities outcomesthat are required.

– an industry in crisis?


COVER STORY

technological background and do not have a definitivealignment back to the people who own and maintain thedevices, in terms of efficiency and sustainability.

Before the widespread application of DDC systems,control specialists appeared to have detailed understandingof the mechanical systems they controlled. With the focusnow resting largely on the software and IT - not buildingoutcomes, building controls technicians sometimes haveonly a basic understanding of the devices their systemscontrol.

The advent of DDC services has seen a more significantrole being taken on by consulting mechanical engineers(designers) who, generally, have a considerably reducedunderstanding of not only building controls, but moresignificantly, a reduced understanding of thecommissioning process and mechanical servicesoperations compared to what was expected 10 years ago.Responsibility for the detailed design and delivery of thesefunctions has been largely transferred to contractors.

While researching the topic Facility Perspectivesdiscovered quite a number of industry representatives wereconcerned about the future of Australia’s controls industry.

It was a general view that many of the concerns couldbe traced back to an uncertain corporate environment formany of the local offices of the major global players, and alack of investment in the Australian market by their globalcounterparts.

The research suggests that Australia - a small part ofthe global controls industry, has ended up with localoperations focused on the sale of technology (whosedevelopment is driven by overseas requirements withdifferent climatic conditions and other drivers), and notnecessarily functional outcomes or service provision for itsclients.

These circumstances also make for an industry thatstruggles to attract and keep quality people and thereforestruggles to have a strategic direction or adapt itself to thechanging needs of the property/facility sector.

The move to open standardsOne of the considerations in the implementation,

operation and maintenance of building controls has beenthe constraints imposed on individual componentreplacement options through the use of propriety systems.

International manufactures of open-architecturesystems such as Lonmark International have set in motionthe move to ensure building owners are not locked in to onevendor for the life of the system, thus enabling the vendorto replace the components by any number of other vendors.

LonWorks and BACnet, globally the most influentialbuilding control protocols, battled it out for the top spot inthe late 90s.

Despite consistent media focus on the rivalry betweenthe companies in the past decade, it is generally acceptedacross the industry that despite both companies takingquite different approaches to managing building controlsystems, they each have their strengths and shortcomings.

At the end of the working day it is quite apparent thatthe market wants a device network that is flexible, simple,cost-effective and competitive.

Facility Perspectives interviewed Barry Haaser, SeniorDirector, LonWorks Infrastructure about the need for inter-operability, and asked about the sorts of questions afacilities manager needs to ask vendors before establishingan inter-operable building controls system. He suggestedthat facility managers should address the following

questions before installing a system:u Can devices from different manufacturers be installed

and commissioned on the same physical wire and becapable of true peer-to-peer communication?

u Have the devices been tested for interoperablecompliance and are the manufactures of the devicelevel products adhering to the interoperable standardswhen designing and delivering their products?

u Are there any closed aspects of these products thatwould inhibit an open system in which they areintended to be used?

u Is the integrator meeting the requirements for thenetwork infrastructure?

u Are there network management and commissioningtools available from multiple sources that cancompletely install all the nodes in the system?

u Are the front-end tools or head-end open so that theycan be replaced with another vendor’s product in thefuture?

u Is integration being performed by a qualified networkintegrator who has adequate training, job experienceand certifications?

u Does the facility manager have control over the buildingwhere by all configuration tools, installation tools, plug-ins, data bases, and software remain on the property?

u Does the open system utilize an Internet or IPbackbone? If so, does it provide effective safeguardsfor network access and security?

u Does the control system use the best availableproducts from the currently available suppliers thatmeet the system specification?

u Is the open network designed and installed correctly? Facility Perspectives: What has precipitated the need

for the building of open systems?BH: “The open systems movement started in Europe in

the nineties. Several issues precipitated open systems.Facility managers were frustrated with the lack of systemflexibility and the expensive long-term maintenanceagreements that came with them.

Faced with expensive energy supply, facility managerssought interoperability to link building controls withlighting, window blinds and other systems, resulting intypical energy savings of 30% or more. Open systemsdeliver “best of breed” product selection to building owners,making products less expensive with more features.

Systems integrators are able to deliver integratedsystems resulting more competitive installation andmaintenance offerings.

Finally, open systems deliver higher levels of scalabilitywhereby new products, applications or systems can beadded at anytime in the future.”

Facility Perspectives: What concerns can buildingcontrol systems cause facility managers?

BH: “Facility managers should be concerned aboutdependence on a single supplier for the system. The vendorcontrols installation, service agreements, and spare parts.This makes the system more expensive over the life of thebuilding, resulting in higher life cycle costs.

Connecting subsystems, or even multiple buildingstogether into a single user interface is difficult becauseeverything must be supplied by the same company.Interoperability results in competition.

The side effect of competition for facility managers isgreater product selection, more competitive productofferings, freedom to choose integrators and suppliers, andexpansion of systems over time.

an open book

For more information, contact Honeywell Building Solutions

at (02) 9353 7807 or [email protected]

or visit www.honeywell.com.au/hbs

© 2007 Honeywell International Inc. All rights reserved

The right Building Management tools can’t be

found in a text book.

Honeywell believes that each business is unique so the

systems and processes you use should reflect that.

Honeywell introduces ComfortPoint — a BACnet-based

building control system that’s simple to use, yet is

sophisticated enough to seamlessly integrate a wide range

of applications and control components so that you won’t need to worry about it. Whether

you are working with a new construction project or planning a retrofit for an older building,

ComfortPoint’s Open Systems Technology is your ultimate choice in achieving an efficient

and reliable automation system. Book an appointment with Honeywell’s experts today to find

out more about how ComfortPoint can make your operations as easy as A-B-C.


COVER STORY

Facility Perspectives: What obstacles stand in theway of establishing open systems?

BH: The largest obstacle facing facility managers is thetemptation to purchase traditional proprietary controlsystems because the vendor significantly reduces theupfront hardware costs to win the project.

Unfortunately, many facility managers do notrecognize the long-term consequences of this decisionwhich grants the vendor an expensive, long-termmaintenance agreement. This cedes control of the buildingto the supplier, giving up all chances of implementing opensystems.

The other obstacle involves writing a solid specificationfor an open building control system. A solid open systemspecification can be found athttp://www.lonmark.org/technical_resources/guidelines/master_system_specs.shtml andhttp://www.lonmark.org/technical_resources/guidelines/us_army_specs.shtml.

Once the spec is written the facility manager must notbe afraid to hold his or her ground because vendorsthreatened by an open specification will tend to bully themaround to win the job. Fortunately, every large supplier ofbuilding control systems offers a completely open system.Unfortunately, facility managers need to ask for the opensystem solution.

Facility Perspectives: Are open systems the only wayforward for effective management of building controls?

BH: Any facility manager that wants to truly controltheir buildings will demand open systems. We take opensystems for granted with computers, communications, andconsumer electronics. When was the last time youpurchased a computer from a company and that companymade the processor, memory, disk drive, monitor, printerand software? Why do we still do this with our buildings?Facility managers making the transition from proprietary toopen systems are liberated by the freedoms that come withit.

Facility Perspectives: What future problems will arisefor those who haven’t established open systems?

BH: One of the most common problems involves parts

replacement. What happens when a product or systembecomes obsolete? With all of the industry consolidationtaking place many legacy systems are being phased out.This means that many facility managers will be forced toreplace their control systems in the not to distant future.With an open system there aren’t any backward or forwardcompatibility issues. Buildings are more flexible providingmultiple expansion options.

Facility Perspectives: What is your advice for facilitymanagers seeking wireless solutions for operating theirbuilding controls?

BH: There is a global frenzy taking place over theprospect of wireless controls. Facility managers arenaturally attracted to the notion of “no new wires”.Unfortunately, many facility managers are learning aboutthe negative attributes of wireless after it is installed intheir facilities. Some of the common issues emerginginclude:u Single vendor product availability of sensors, actuators

and controls since they use a proprietary protocol.While vendors claim to use an open standards, someare actually propriety Products.

u Batteries are supposed to last five to ten years, butpoor network architectures are resulting in batterychanges every six to twelve months.

u Reliability is a serious problem due to poor immunity tonoise and signal interference, resulting in devicesdisappearing from the system even though they arestill physically there.

u The best solution for facility managers seeking awireless solution is to specify a twisted pair backbonefor essential controls and wireless for non-missioncritical devices such as thermostats and remotesensors. Facility Perspectives: Is there any other further

advice you would offer facility managers seeking toestablish open systems?

BH: Many facility managers in Australia have beenembracing open systems for several years. Unfortunatelyless than half the new buildings constructed in Australiaspecify an open system.

This is further complicated by the belief that all opensystems are indeed open. Facility managers need to lookclosely at the open system offerings from their vendors.While the vendor may claim that the system is open, thereis really only one true test for an open system. Controllers,VAVs, AHUs, stats, and head-ends must not only beinteroperable, but interchangeable with comparableproducts from other suppliers.

The situation overseasAs mentioned previously, there also appears to be a

general feeling among industry representatives that relatedassociations need to do more in offering further educationand professional development to facility managers seekingto manage their building control systems more efficiently.

In the United Kingdom the Building Controls IndustryAssociation website contains information relating to theBCIA in general, membership, events specific to the buildingcontrols industry, training and education, and a range ofpublications that can be downloaded free of charge.

An advanced Building Controls Industry TechnicalCertificate is also offered which consists of six modules:Fundamentals of HVAC & Building Technology, Measuringand Control Technology, Hydraulics in Building Services,Control Functions in Heating Plants, Control of Ventilation &Air Conditioning, and Refrigeration Technology.

At the end of each course a test is given and providedan adequate pass mark is obtained a certificate is issued.On completing and passing courses 1-3 a Building ControlsIndustry Technical certificate is issued. The award can alsobe used in registering for a Joint Industry Board (ElectricalContracting Industry - JIB) certified Skills card for theconstruction industry as a Building Controls Engineer. Oncompleting and passing courses 4-6 an Advanced BuildingControls Industry Technical certificate is issued.

There is currently no permanent course on offer in

Australia that offers the same training.Other solutions discussed by industry representatives

to address the building controls industry crisis started atthe design process. Ensuring that technology is developedwith the client’s needs (specific to the Australian climate)was an essential point, but also intrinsic in the process isthat a sound understanding of the devices they ultimatelyaim to control is possessed by those commissioning thecontrol systems.

More in-depth documentation was also a key pointraised, with a definite need expressed for a comprehensiveowner’s manual that clearly conveys the design intent, astandard specification template, information on how tointerpret the daily data provided on energy outputs and tipson handling trouble spots that emerge during operation andmaintenance.

Another suggestion raised was the need forperformance verification protocols that ensures thebuilding controls system is operating at optimal efficiency afew years down the track.

Ultimately, all problems seemed to come back to theneed for improved dialogue between designers, controlmanufacturers, installers and facility managers.

As “sustainability” continues to dominate mediaheadlines it’s certain that pressure on the business sectorto conserve more energy is only going to increase. It’s thispressure that will make effective building control systems anumber one priority for facility managers everywhere.

For more information on Open Systems Following its Open Systems seminars in Australia lastyear, LonMArk is currently planning its educationalSeminar Tour 2007 for the following dates: Sydney –June 26, Melbourne – June 27, Perth – June 29, moreinformation will be available at www.lonmark.orgcloser to the time.


COVER STORY

By optimising the energy-efficiency of buildings, subtantial energy-savings can be achieved with obvious

benefits for your budget and the environment. Just imagine you could achieve these energy savings without

any significant additional costs or investment.

At Siemens, we design and implement customised, performance based solutions that allow facility, capital

and technology improvements to be made within existing budgets. This is achieved by using energy and

operational cost savings to pay for optimisation of your infrastructure, thus creating a win-win situation

for your business and for the environment. Energy is the lifeline of your facility - the pulse of your business.

Find out more by visiting: www.siemens.com/buildingtechnologies . For all inquiries please contact

Mr Lynden Clark, Tel. 137 222 .

Building Technologies

It pays to go easy

on the environmentEnergy & Environmental Solutions

CASE STUDY: BUILDING CONTROLS + MANAGEMENT SYSTEMS


St John of God HospitalPrivate hospital undertakes the Greenhouse Challenge.

Just because a hospital increases its size and itsservices doesn’t mean its energy consumption hasto increase also. Effective energy management andsome wise capital investment led St John of God

Hospital Murdoch in Western Australia to record a 12.03%reduction in energy use even after a number of expansionprojects.

In late 2002, St John of God Hospital (SJGH) Murdochundertook a site evaluation in line with the GreenhouseChallenge. The evaluation comprised a walk-throughassessment to determine areas where reductions ofgreenhouse gas emissions could be achieved.

The assessment of the 30,000 square metre floor area,320+ bed health campus identified that reductions ingreenhouse gas emissions could be realised in the areas ofwaste recycling, HVAC and building services, medical gasesand through the use of renewable energy.

In the following year, SJGH Murdoch became an activeparticipant in the Greenhouse Challenge by committing to aprogram to reduce greenhouse emissions and to providethe necessary financial and administrative support toachieve reduction targets.

With input from management and staff, a more rigorousapproach to recycling was adopted resulting in a moredefined recycling program. This included an increasednumber of categories for recyclable items, additionalrecycling bins and the installation of a larger cardboardcompaction plant. The implementation of a more efficientrecycling system was accomplished in a relatively shortperiod of time and did not require a large capital outlay. Italso assisted in raising the awareness of recycling andgreenhouse emissions throughout the campus.

The HVAC and building services required a more stagedapproach to identify the main areas for reducinggreenhouse emissions. HVAC services are typically themain consumers of energy within a building. They are alsothe services that can often provide the greatest opportunityto improve plant operation, lessen operating costs andreduce greenhouse emissions in relatively short paybackperiods to offset any capital investment.

InitiativesA review of the hospital’s HVAC systems carried out by

ACMV Design Consultants identified that the main areas toreduce energy consumption and greenhouse emissions, inorder of highest return on capital investment, were:u Improving the performance, staging and control of the

4,400 kW chiller plantu Improving the load profile and performance of the

steam, heating and hot water boiler plant (approx 2,700kW)

u Replacing the existing pneumatic controls with digitalcontrols to improve the operation and control of eight ofthe original operating theatre air-handling units andassociated plant that operates 24/7

u Improving the performance and control of the air-handling plant serving the Day Surgery area byimproving the existing digital control routines andtuning the six air-handling units and associated plant.

u Use of variable speed drives on chilled water andcondenser water pumps where possible withoutcompromising the operation of the chiller

u Gradual replacement of the existing pneumatic controlswith direct digital controls and the provision ofimproved control routines to various air-handling unitsand associated plant and equipment.Since 2003, SJGH Murdoch, in conjunction with ACMV

Design Consultants, has progressively implemented aprogram of remedial works as funds have become available.Works on the chiller and boiler plant, the Operating Theatreand Day Procedure Unit air-handling plant have beencompleted.

THE RESULTS

The CostThe new 25 m3 cardboard bailing plant was installed

for approximately $36,000, to replace a smaller bailing unitand sulo bins that (combined) cost approximately $1,000 amonth to hire and operate.

The smaller system could not cope with the total


CASE STUDY: BUILDING CONTROLS + MANAGEMENT SYSTEMS

cardboard disposal and added approximately 30% togeneral waste disposal costs. To hire the larger compactorwould have cost approximately $1,200 per month plusoperating costs. Given the volume of the cardboard the sitegenerated and capital amortisation, purchasing the largercompactor resulted in a payback of between 2 - 3 years.

The Greenhouse Challenge remedial works to the HVACplant cost approximately $112,000. Annual energyconsumption for 2004/2005 was in the order of $950,000per annum. Although the Hospital has expanded, areduction in energy consumption of around 12% has beenachieved. This suggests that a payback on capitalexpenditure of 2 - 3 years across the site would be realised.

The BenefitsThe benefits have been an overall reduction in

greenhouse emissions since commencement of theGreenhouse Challenge program.

The hospital has grown with the addition of a 70 bedward, new Central Sterile Supply Department, expandedEmergency Department, two additional operating theatresand the installation of an 1100 kW chiller.

These changes resulted in an increase in occupied floorarea from approximately 30,000 m2 to 37,000 m2 and anincrease in patient bed days of 12%. However, the hospitalrecorded a reduction of 15 % in greenhouse gas emissionsand a 12% reduction in energy consumption betweenNovember 2004 and November 2005.

Lessons LearntThe initiatives implemented to date have resulted in a

best practice review of the operation and performance ofthe Hospital’s building services and assets and thisidentified some design and operational shortfalls. Thesehave resulted from the evolution of the site’s buildingconstruction program over the past 12 years.

This has prompted the Hospital to be more proactive inthe design, construction and commissioning stages ofcurrent and future projects to ensure that building servicesand engineering systems installed operate as efficiently aspossible. This will also ensure that the systems aresustainable over the longer term and are able to meet theever-changing functional requirements of the Hospitalensuring that items such as sustainability, energyefficiency and energy management are built into the designof the building’s services.

The Greenhouse Challenge has committed SJGHMurdoch management and staff to reduce greenhouseemissions and has allowed the identification andprioritisation of remedial works to ensure that the capitaloutcomes match investments, and that effective reductionsin greenhouse gas emissions are realised.

Positive outcomes of the greenhouse reductionprogram included the improved efficiency of plantoperations, enhanced comfort levels throughout theHospital and a reduction in operating energy costs. Sincethe main opportunities in HVAC services had been realisedearlier, electrical services were the next focus of attention.Facility Perspectives envisaged publishing a more detailedupdate of SKGH Murdoch’s progress in the near future.

http://www1.sedo.energy.wa.gov.au/pages/aus_build_cs_stjohnshospital.asp

CLIENT FEATURE

CLIENT FEATURE

ideaction 2007 Sydney May 9-11


EVENTS


EVENTS

ideaction 2007 looks set to once again deliver a world-class learning andnetworking opportunity for facility managers throughout the country with itsmajor theme “Striving towards a better environment – is it important?”The Facility Management Association of Australia’s 18th annual conference will beheld 9-11 May 2007 at the Sydney Exhibition & Convention Centre, Darling HarbourSydney, holding its place as the premier Facilities Management learning event inthe Asia Pacific region.

ideaction 2007 – Site Visits of Taronga Zoo,Optus Campus at Macquarie Park, and TelstraStadium.

Taronga ZooTaronga Zoo recently celebrated its 90th birthday, and

they are continuing the celebrations with an aggressivecapital works program designed to ensure they maintaintheir place as Australia’s premier Zoo. Accessible by ferry,train, bus and car, the Taronga Zoo is situated in Bradley’sHead Road, Sydney. Currently in stage 2 of the master plan(see below), Taronga Zoo is upgrading its services such aselectricity, gas, and water. STAGE TWO (2004-2007)u New African Tropical Savannah precinctu New Australian precinct phase twoSTAGE THREE (2007-2010)u New Asian Highlands precinctu Redevelopment of Education Centreu New Invertebrate Interpretive Centreu New South America Precinct

Taronga is currently enjoying its latest success in theWild Asia precinct and keenly anticipating the completion ofits latest project, Great South Oceans, a new projectrepresenting the Australian Southern Coastline, whichinvolves large treatment plants and pipes servicing thelarge saltwater pools and exhibits which will shortly housethe penguin and seals.

Optus CampusHaving commenced construction in 2004-2005, the

brand new 92,000sqm Optus Campus, is currently underconstruction at Macquarie Park in Ryde, North Sydney.

The Macquarie Park facility will achieve a four and a halfstar rating (out of five) base building rating under “SEDA”Australian Greenhouse rating and significantly reducesSingtel Optus’ future environmental footprint.

During the site visit, attendees will have theopportunity to tour what will be the largest single-tenantedcorporate facility in Australia. This major and forward-thinking project is near completion, with ideas implementedfrom global research.

The will relocate 6000 staff, and boast retail, gym, andchildcare facilities. The site visit will include a tour of allaspects of the project including: facilities – retail,gymnasium, childcare, gardens, transport optionsresearched, car parking, work practices and much more.

Optus chose Macquarie Park as it is Australia’s futureleading technology address. Macquarie Park has beenidentified as a strategic part of the State’s MetropolitanStrategy with major improvements in transportinfrastructure developments in the area to be completed in2007/08.

Optus Major Project Manager Paul Sedman will alsopresent a full outline of the project.

University of SydneyThe Campus 2010+ Building for the Future program, at

the University of Sydney unites a collection of fiveindividual projects that will complement and transform theheart of the University of Sydney’s Camperdown andDarlington campuses.

The Campus 2010+ Building for the Future program willopen up the University to its surroundings, making themost of neighbouring Victoria Park and ensuring that thecampus is more accessible, particularly during eveningsand weekends.

Sydney is an ‘open all hours’ city, and it is increasinglyimportant that the University reflects that ambience. Thatmeans not only a cultural shift in teaching and research,but a commitment to facilities and services that will keepstep with the new attitudes.

The breadth and depth of subjects embraced by the

Image Courtesy Rice Daubney, Architects.


EVENTS

University’s teaching and research areas are constantlychanging and adapting to meet current needs, and theworkplace must evolve to keep up pace. The program aimsto build in the flexibility and cross-disciplinary collaborationneeded to do this, whether the need is for teaching space,library resources or childcare facilities and represents acommitment to world class facilities.

It aims to provide the space and support for staff andstudents to fulfill the University’s aspiration to be a leader inacademic excellence – to be first in Australia, among thetop five universities in the Asia- Pacific region, and one ofthe top 40 universities in the world.

ideaction delegates are invited to see the University asit operates and be provided with an insight into the 2010+Building for the Future innovative world class project.

Telstra StadiumTelstra Stadium is the centrepiece of Sydney Olympic

Park with seating for up to 80,000 people for major eventsand 16 function rooms catering for groups from 20 - 3000.The site visit to Telstra Stadium will offer insight intoSodexho, a global facilities management and food servicescompany that has the responsibility for key operationalaspects of Telstra Stadium. This fully interactive site visitand luncheon will take you behind the scenes todemonstrate key aspects of preparing and operating amajor event. Attendees will enjoy a delectable two-courseluncheon in the stunning Olympians Room before the tour.

Over the next 10 years more than $1 billion will beinvested into the development of Sydney Olympic Park. Bythe year 2025 the town will have expanded to 15,000 -20,000 residents and 20,000 workers.

Chairman’s Welcome Reception Following the day of site visits conference attendees

are invited to enjoy a night of networking at the Chairman’sWelcome Reception and FMA Australia’s very own Casinowith a difference! Your host Andrew McEwan will set thescene for what promises to be an exciting Conference. TheReception will be held at the Star Room, IMAX Theatrecomplex, Cockle Bay, Darling Harbour on Wednesday 9 Mayfrom 6.30-8.30pm.

The conferenceideaction has a reputation for attracting facility

management’s most highly regarded speakers and thisyear ideaction’s theme will be “Striving towards a betterenvironment – is it important?”.

The Conference will bring into focus some of the keyissues facing the facilities management industry as it takesits rightful place as a business enabler in the sphere ofglobal enterprise. Speakers from around the globe will leadan outstanding program, and they will share your attentionwith national panel sessions designed to examineAustralia’s contribution toward Built Environment issuesand solutions.

The line up of presenters at this year’s conferenceincludes:

Thursday

Keynote:Dr Keith Futcher, ISS Hong Kong FM Innovation, Integration and Internationalisation

Keith Futcher Managing Director ISS Hong Kong, (thelargest facilities management group in Hong Kong), willaddress the broad subject of FM innovation, integration andglobalisation of the FM industry.

Keith’s considerable qualifications and experienceencompass project management, civil engineering andstructural engineering with previous responsibility formajor multi-million dollar public works projects in HongKong. Geoff Dennis, President, TEFMATertiary Education Facilities Management Association(TEFMA) Update

Geoff Dennis is a President of the Tertiary EducationFacilities Manager Association (TEFMA) and has travelledextensively overseas touring University facilities andpresenting at conferences.

TEFMA serves education institutions in Australasia,including Hong Kong, and Geoff’s presentation will coverthe services that TEFMA offers to its members, thecontemporary issues facing higher education FM, andinitiatives that TEFMA is implementing to assist its

ideaction is proudly brought to you by our 2007 Platinum Supporter

SUPPORTERS

Silver Sponsors


EVENTS

members. Since Geoff is also the Operations Manager,Property & Facilities Division, at the University ofQueensland and his presentation will also cover a briefoverview of FM at the University of Queensland.

Concurrent: Vyt Garnys, Managing Director, Cetec Pty LtdValuing Productivity and the Indoor EnvironmentLeigh Jasper, Managing Director, AconexInformation Management in FMMario Vella-West, Chief Executive and George Stamas,Director GJK Facility ServicesCommercial and Social CollaborationDr Richard Reed, Senior Lecturer, Melbourne UniversityPanel: Office Buildings and the Environment

Keynote:Facilitated by Duncan Waddell, Director FM IntelligencePPP’s Panel Update

Duncan Waddell will chair a stellar cast of presenterssuch as Glenn Maguire, Director Commercial Division, Dept.Treasury & Finance (VIC), Gerard Blood, MD Bilfinger BergerConcessions, and Kenneth Davidson, Senior Columnist –The Age and Co-Editor of ‘Dissent Magazine’, in examiningthe relatively new area of PPP infrastructure delivery.Dr Geoffrey Pembroke, ConsultantSustainable Innovation in the New Millennium

A U.K based Consultant in Innovative Procedures; DrGeoffrey Pembroke will detail the need for innovative andsustainable developments.

Concurrent: Brian Purdey, Managing Director, Kodo Pacific Case Study: Delivering Maximum Value from Investment inPropertyDr James Baxter, Associate Professor of Property, RMITUniversityWorkshop:The Nexus between Property, PM and FMEducationRebecca Hoskin, Manager Capital and Assets, Dept.Premier and Cabinet.Case Study: Energy Savings using Innovation andCollaborationFacilitated by Tom Cantwell, Partner, DLA Phillips FoxInteractive panel: Green is the new Black

Keynote:Alex Ritchie, Executive Director, Brand ExperienceCreating the Total Sensory Experience in the Workplace.(See the interview with Alex in this article).

In what promises to be a lively presentation, Alex willfocus on culture and values, and engaging and empoweringyour employees.

Friday

Keynote: Stan Mitchell (Chairman), Fred Childs (Director), MattDawson(Director) and Steve Gladwin (Director) Global FM.Global FM Update

Since Global FM was officially incorporated underBelgium Law in 2006, the founding members of FacilityManagement Association of Australia (FMA Australia);International Facility Management Association (IFMA) andthe British International Facility Management (BIFM) havebeen in discussions with other National member based FMorganisations who have expressed interest in joining theAssociation.

This presentation will discuss the current position ofGlobal FM and will highlight some of the critical issues suchas recognition, professional development and sustainabilitythat confront our profession and industry from aninternational perspective.

OPENING KEYNOTE

CLOSING KEYNOTE

GALA DINNER

CHAIRMAN’S WELCOME

SITE VISIT LUNCH SUPPORTER


EVENTS

Concurrent:John Ridley, Director, Hyder ConsultingFMA Australia Leadership in a Carbon Constrained EconomyCharlie Reilly, Deputy Managing Director, Multiplex FMThe impossible dream? Integrating FM into the Design andConstruction ProcessPeter Scuderi, Chief Operating Officer, CRC forConstruction InnovationApplied Research in the AEC-FM Industry: Australia’sLeading Performance

Keynote: Paul Sedman, Manager, Major Projects, OptusThe Campus: The New Era

This special presentation by Paul Sedman will cover theOptus Campus from inception to completion. Paul willprovide a project overview: covering all aspects from:u Why the move? Real estate issues; lease negotiations;

working with stakeholders; aligning business needs tothe relocation; implementing cultural change.

u Environmentally Sustainable Design: what has beendone? What has been learnt & implemented fromaround the globe? What is the ongoing ESD strategy?

u Workplace Design: Planning objectives; treatment ofgreen materials.

u Location issues: Staff retention; transportation/parkingissues for 7000 staff

u The FM Strategy: In/out House operations; operationalrequirements.

Concurrent: Caroline Burns, National Director Strategic Consulting,Jones Lang LaSalleDelivering a Smarter, Better, Mobile EnvironmentMichael Schley, CEO, FM SystemsMaking technology work – Stories from the FieldVictoria Hardy, CFMJ Academy Department Head,Department of Design & Facilities,Wentworth Institute of TechnologyThe Sustainable CareerGraham Gunner, Graduate Certificate in FM, University ofSydney.The Butterfly Effect

Keynote:Facilitated by Duncan WaddellInteractive panel session: Green Buildings and their Place inthe Market.

There is an ever increasing demand for environmentalsolutions in our work environments, while also deliveringand managing effective, efficient spaces. The panel willprovide insights, experiences and practical examples as tohow FMers can provide leadership and positive outcomesfor their organisations.

Peter Verwer, Chief Executive, Property Council ofAustraliaFM 2.0: The Next Property Business Revolution

Management is the new black. Property Council ChiefExecutive, Peter Verwer, will describe a new era wherefacilities managers are smart, sexy and successful. Ofcourse, some changes will be needed!

FMA Australia Annual Gala Dinner The Annual FMA Australia Gala Dinner and Awards for

Excellence is the highlight of the facility management

calendar. Held at the stunning Sydney Town Hall, delegatesare invited to dress up, step out and kick up their heels,enjoy delectable food, music, fantastic entertainment andof course, great company.

The Sydney Town Hall has been the jewel of GeorgeStreet for over 120 years and represents a spectacularexample of Victorian architecture. Drinks in the vestibule

followed by a three course meal in the Centennial Hall setsthe scene for a truly special night. The Gala Dinner willbegin at 7pm on Thursday, 10 May, 2007.

TICKETS: A Gala Dinner ticket (one) is included in yourconference registration.

FM Excellence in the SpotlightHave you entered the 2007 FMA Australia Awards forExcellence?

Every year at the ideaction Annual Gala Dinner, FMAAustralia recognises excellence in the facility managementindustry by rewarding professional and personal excellencein their field.

While the judging standards are still maintained at theirusual high level, this year the requirements for entrysubmission have been eased to make it a bit easier fortime-poor facility management teams and individuals toparticipate. See the News section for details.

For more information on the eligibility and submissioncriteria for the awards outlined below, please visit the FMAAustralia website: www.fma.com.au or contact FMA Australianational office on the Submission Hotline on ph: 03 86416601.

Closing ReceptionThe last networking function for the conference will be

held at the Sydney Convention & Exhibition Centre from 5-6pm on Friday 11 May, 2007. Following the last keynotesession, all delegates are invited to stay for refreshmentsand say farewell to ideaction 2007.


EVENTS

The Brand Experience

This year’s ideaction conference promises todeliver some truly inspirational speakers,including Alex Ritchie, Executive Director ofLandor – International brand consultants. An

experienced’ brand architect’, Alex’s presentation won’tbe on the latest workplace design trends, but will focuson the important issues of workplace values and cultureand how to engage, empower and retain your staff.Facility Perspectives’ Melanie Drummond spoke to AlexRitchie further on what a ‘brand experience’ is all about.Facility Perspectives: Can you define brand architectfor me?AR: A brand architect is somebody who has anunderstanding in architecture and interior design withthe main focus on brands. A brand environment is thetranslation of the values of a brand into a physical objector space and that’s where the understanding of the worldaround us comes into play. The process creates atargeted and cost-effective communication platformwhich encourages a two-way dialogue between thebrand and its audience.

The audience can be somebody working for anorganisation or it can be a customer or consumer. A brandarchitect is somebody who understands how to build thephysical environment but also understands the truevalue and importance of what their client’s brand standsfor. Some people just end up putting their name abovethe door, but if you can design the environment to reflectthe values of your clients brand then that’s even better.Facility Perspectives: Why are organisations beginningto realise that the culture and brand they project toemployees and the public is an important businessobjective?A.R: One of the reasons people seem to change jobs sofrequently these days is that there doesn’t seem to bemuch loyalty within organisations.

When people are retrenched or decide to move on tofollow their own careers, it costs companies a fortune toretrain new staff. If a company can retain an employeefor as long as possible then they benefit from thatbecause they have a loyalty and knowledge base thatdoesn’t disappear. Now what is going to keep thesepeople there? What will create that sense of loyalty? Ifyou can communicate the values of an organisation intothe way that you actually use the space, you’ll create anenvironment that people are more relaxed in. It’s oftenbeen said that people will sacrifice better salaries to workfor a company that they really enjoy working for.

Facility Perspectives: How important do you think theworkplace is in achieving the best from your workers?A.R: It’s essential. You don’t have to spend a lot of moneydoing it – it’s about how you use the space rather thanhow much money you spend on it. Once you establish asense of community back in the environment then thingsreally start to work. People go to work to learn, but ifeveryone is pigeon-holed in small boxes in a regimentedformat then it doesn’t allow for that to happen.Facility Perspectives: Does the work environment of acompany also have a significant impact on potentialclients who might pass through their doors?A.R: I think a client will feel much more comfortable withan organisation knowing that they have a strong cultureand they have a strong sense of belonging. I think youhave to live what you preach and again that can be donevery expensively or inexpensively. Facility managers are‘brand guardians’ for an organisation; they’re responsiblefor how the brand is interacted with and communicatedwith internally. They look after the core values of anorganisation and how that touches the employees.Facility Perspectives: Why do you think organisationsnow need to have ‘emotional engagement’ betweentheir employees and the organisation’s core values? A.R: As people we need to belong, we’re very tribal in thatsense. We spend something like 60 percent of ourwaking lives at work and to create that sense ofbelonging in the workplace is extremely important.Facility Perspectives: What can people expect from yourkeynote speech at the ideaction conference?A.R: It will be a very colourful presentation, it will be goodfun.

Alex Ritchie

Alex is a highly experienced and respected brandarchitect who has worked across Europe, Americaand Australia for over 16 years. He has designed andmanaged the development of major retail,environmental, exhibition and brand focusedprojects, through the master planning concept stageto fully detailed completion.Some of his recent major Sydney projects includeWorld Square retail, McDonald’s future conceptrestaurants, AAPT’s new commercial head quartersand Fuji Xerox’s new innovation brand experienceenvironment. Landor has been running for over 50years and has 22 offices across 17 countries,making it one of the world’s largest brandconsultancies.

it’s about how you usethe space rather thanhow much money youspend on it


INDUSTRY EVENT

Workstationsof the futureThe people at iken – workspace furniture specialists – have launched an annualcompetition which challenges cutting-edge designers to come up with workstationsof the future - and possibly end our desk dilemmas forever.

Last year, entrants were challenged to come up witha concept of a workstation someone might be usingin 2011. Broken into four categories the competitionoffered both professional designers and students

the chance to showcase their finest designs. Winners were announced at the iken showrooms in

Sydney on Thursday, September 2, 2006. Awards went to:u Professional Innovations:

Nick Scherpel – Obbelode (Group GSA)u Professional Commercially Viable:

Carr Designu Student Innovation:

Anthony Franze’ (University of New South Wales)u Student Commercially viable:

Aaron Goh (University of New South Wales)The judges included Immediate Past Chair of FMA

Australia, Stephen Ballesty, who was impressed with thecalibre of entries.

“The level of participation, quality of presentation andrange of innovation in workspace design was impressive. Asan industry we can be proud of the local designers andstudents who embraced this inaugural initiative by iken andmade the judge’s task so difficult. I especially congratulatethose who won awards.”

Among the winners was Aaron Goh of the University ofNew South Wales. Aaron won the award for mostcommercially viable student with his design entitled “skin”.His workstation consisted of an integrated CPU that has athumbprint recognition which enables the user to log in andaccess their customised workstation.

The user can view a word processor, photos and engagein video conferences via vector-base projectors. The CPUallows the user to set the colour scheme and the height andtilt of the workstation, encouraging freedom of movementand expression in an open space.

Carr Design took out the award for Professional –Commercially Viable with their design – “linear workstation”.The workstation was designed to act as a “spine” within anopen-plan environment. The spine offers a bookcase abovethe desk line which allows for the storage of telephones, in-trays and files without the visual clutter people are used to.

The design offers people a level of privacy forindependent tasks while standing at only 1.2 metres highit’s makes it easy for occupants to communicate with a

nearby worker. Space is maximised effectively with lockabledrawers, lateral files and a pull-out bin drawer locatedbeneath the desk line.

Anthony Franze from the University of South Australiawon the award for Student Innovation for his design “fos –flexible office system”. His workstation, which can easily becompacted down and moved, allows for multipleconfigurations and makes it easy to accommodate a newstaff member as extra units can be kept in on-site storage.

One unique feature of the fos system is the ability of theoccupant to control their environment by moving slidingdividers built into the unit. Moving interior shelves producesa translucent screen which allows the user some privacybut still enables them to be aware of their surroundingenvironment. By moving the exterior dividers opaquescreens arise allowing greater privacy – while leavingscreens down allows workers to work in with one another.

Group GSA’s Nick Scherpel-Obbelode won theProfessional Innovation Award with his design “werbank”.The technically savvy “werbank” introduces an interactive


INDUSTRY EVENT

working screen on the user’s desk as well has acurved flat screen that can display programs.

The desktop screen also works as a graphicboard and allows people to open and displayfiles, change, mark, design and edit. The beautyof the two-screen system is that users will beable to handle and work every digital file theyhave and it enables people to personalise theirdesktops efficiently.

iken rewarded the winning designers with aseven-day trip to Cologne, Germany, for theannual Orgatec design fair. The designers foundthe trip inspiring and educational in terms of newideas.

Each year the organisers of the Orgatec fairin Cologne present the latest designs in officefurniture, drawing about 75,000 visitors from 40countries.

One of the highlights of the trip for ikencompetition winners was experiencing one of

Orgatec’s theatrical workspaces.Orgatec showcased projected environments

which allow the viewer to immerse themselvesin remote locations. Occupants can transportthemselves across the world or change thecolour of their environment dependant upontheir mood.

In Australia, however, it may be some timebefore workers enjoy views of the Grand Canyonwhile sitting at their computers.

Results of iken’s “vote for your favouriteworkstation” email campaign showed that themajority of Australian architects and designerspreferred more traditional workstations similarto products that exist today. Possible reasons forthe more conventional tastes could be linked tothe desire for social interaction, a reluctance toaccept technological advancements and ofcourse, cost considerations.

It is impossible to pinpoint exactly why

Australians are more comfortable with the deskand chair system but comparisons between theAustralian and European market for commercialoffice furniture shows we are still awaiting a newtechnological revolution in the workspace arena.

When the revolution does come, there is nodoubt the pioneering designers that emerge fromthe iken competitions each year will be leadingthe way for innovative workspace design.

iken would like to ask you the reader, tocomment on the movement of workspaceenvironment – when will you be ready tomove forward and away from the currentdesking system?Contact Amy (Marketing Manager)E: [email protected]: 02 9660 4888 or 0412 163 304To find out more about iken’s annualcompetition visit www.iken.com.au

Clockwise from left:Winners of the 2006 Iken Workstations Awards• Carr Design's winning entry – the"linear workstation• Anthony Franze from the University of South Australia won

the award for Student Innovation for his design ‘fos –flexible office system’

• Group GSA’s Nick Scherpel-Obbelode won the ProfessionalInnovation Award with his technically-savvy design


SPACE PLANNING

Business Drivers: Changing methods of workThe embracement and utilisation of technology fromcentralised main-frame computing to the personalcomputer was an important milestone in redefining howpeople worked and interacted in an office environment.

The advent of real empowerment at an individual levelcreated a platform for a new wave of thinking and researchon the possibilities of space utilisation, and how, inconjunction with technology, it could be used to supportchanging business processes.

Companies and organisations have been searching forinnovative ways to maximise space and workerperformance through effective office design, and one of theoutcomes of this research and experimentation was theadvent of open-plan offices, which emerged in the 1960s.

Around the same time however, was the birth of acommunication vehicle destined to radically change officework practices and communication generally – the Internet.

While the growth of mail services annually can betracked in single digits, the all pervasive internet, andparticularly email has grown exponentially. This technologyhas spawned a new era, not only in communication, but inwork practices enabled through the ease and availability ofcommunication.

The very availability of communication and informationthrough advances in technology has made informationitself a tradable commodity, transcending the Industrialrevolution through the Information Age (1980’s) to the

Knowledge Economy. Broadly this age is termed theInformation Revolution, and has spawned a new class ofworker, namely the Knowledge worker.

Organisations value skill sets that include the ability toparticipate in collaborative project-based tasks, encourageinteraction and the sharing of concepts and ideas, andexpect a high degree of self-reliance and autonomy.Workers in the meantime, value stimulating workenvironments that support them in performing theirincreasingly challenging roles, and it is interesting to notethat the average period of employment with an organisationis presently 2.8 years.

For facility managers whose primary role is theintegration of people, process and place to supportbusiness objectives, the challenge is to examine theefficiency with which space is being used and to addressthe importance of space planning (and its utilisation) inrelation to supporting the business objectives.

One of the issues to impact on the utilisation of spacehas been the move by some industry sectors, to distributedwork.

Distributed Work Communication technology has enabled workers to

perform distributed work, and since workers can interactwith others anywhere and at anytime, understandingdistributed work for the facility manager involvesdeveloping or managing real estate strategies, IT

New office designs for knowledge-based organisations are to be expected. Thesedesigns will have to respond to and take advantage of:

u temporal and spatial freedoms and opportunities made possible by theadoption of new ways of working,

u the managerial drive towards generating greater creativityu and productivity,u the rising expectations of increasingly sophisticated andu discriminating users,u the potential of creating sustainable environments.Knowledge management and the creative workplaceBy Frank Duffy, DEGW New York.

Business objectivesand space planningSpace planning to support business objectives has always been a question ofform and function. The juxtaposition of space and the ambience it imbues in itsoccupants has long been the subject of the designer’s creative interpretation ofthe brief. Business process requirements however, have become moresophisticated and specialised as organisations seek to maintain their competitiveedge in a rapidly changing marketplace. Increasingly, specialised needs requirespecialised answers. Facility Perspectives Max Winter investigates.

Photo courtesy Project Control Group Photo: Simon Kenny Photography Ph 02 9456 5544


SPACE PLANNING

infrastructures and employee policies that support theseinitiatives.

Optimising space usage and amenity for thoseorganisations involved in these initiatives have generallymeant adopting systems such as hot-desking or hotelling.Hot-desking, the sharing of a workstation between morethan one user is used especially in call-centre situationswhere shift work is required, while hotelling, the use of a‘concierge’ to book desks for workers requiring office time,is more usually deployed for sales forces that spend amajority of their time on the road.

Successful distributed work however, appears todepend heavily on employees having fully committedmanagerial and technical support that allows andencourages them to access, process and share informationwith others.

It is interesting to note that where distributed workencompasses working from home, in the U.K it is alreadypolicy, from an Occupational Health and Safety perspective,to have the home inspected for compliance with OH&Sstandards. Recent research has confirmed that this israpidly becoming the case in Australia as well. For facilitymanagers, distributed work practices add an entirely newdimension of complexity in terms of risk managementpractices, OH&S requirements, and issues such asinformation security, legal and insurance, workerentitlements, and managerial and IT support.

Flexibility and ChurnAn organisation’s ability to remain responsive to fluidmarket conditions is decidedly one of the main reasons for

the requirement for flexible workspace arrangements, andfacility managers need to be aware of the potential forchange within the company.

User control of the office environment can besupported by creating flexible workspaces that are easilymoved to allow for the accommodation changes that canoccur through reorganisation measures. For companies choosing to adopt hotelling or hot-deskingpractices, it is important filing systems and telephones canbe easily interchanged between users.

Staff retentionQuite often organisational change or churn that requires thedesign or redesign of office space is a valuable opportunityto revisit an organisation’s culture and its potential impacton employees.

While optimising space usage and cutting costs arecertainly key drivers in the redesign of office space,investing additional funds to create a workspace whichreflects the branding and culture of a company can alsoprove a valuable way of attracting and retaining staff.

The workplace culture of UK Law firm Reed Smith isproudly promoted on their website: “The office space weoccupy has been designed to reflect the importance weattach to transparency, openness and teamwork; officesare glass-fronted with open doors, leading to the core open-plan areas. This gives us an opportunity to engage with oneanother and to have critical visibility.”

Research in the past years has highlighted the linkbetween workplace environments and achieving the bestperformance from workers, further emphasising the need

Phot

o co

urte

sy P

roje

ct C

ontro

l Gro

up P

hoto

: Sim

on K

enny

Pho

togr

aphy

Ph

02 9

456

5544

to focus on the health, comfort and safety of occupants when looking atspace planning.

To ensure the most is made out of a workplace change there is anumber of companies who specialise in helping clients manage theadjustment productively.

Kirsten Smith of Change Angels in Victoria helps clients explore andimplement ways they can maximise their people, culture, processes andworkplace.

“Our colloquial evidence suggests that by optimizing a workplacechange, an organisational culture can be turned around in three years,where through incremental change it can take 10 years or longer. For many of Change Angel’s clients the competition for talent is a primemotivator to redevelop a workspace as well as taking every opportunityto increase their competitive edge.

“Layout of a workplace can support the kind of culture that isdesired by providing opportunities for people to behave in a way that isconsistent with the values of the organisation. For example there is nopoint putting everyone in separate rooms if you want people tocollaborate.”

She describes the culture of a workplace as the “consistentpresence that an organisation presents, whether it’s the behaviour of thepeople who work there, your interaction with them as a customer, theirphysical manifestation or their message and activity in the community”.

Despite the obvious benefits of a new workspace – potential for costcutting, improved corporate image, new work ‘culture’, attraction andretention of staff and improved worker performance, Kirsten says it isessential any change is managed pro-actively by clients to avoid staffalienation

“Keeping up the dialogue and providing people with a number offeedback routes during a change process is critical. Whilst talking toyour project representative works for some, others like using blogs,


SPACE PLANNING

youtube and chatrooms to put forward their ideas andcomments.”

“The best way to reduce impact on people is to let thembe part of the decision making and consultation process.”

Kirsten suggests facility managers ask themselves thefollowing questions when space planning an office fit out.

What kind of behaviour and values do we want peopleand the organisation to display?

How do we want to change that part of the businessand what range of technological, physical and processoptions will best support that work style?

How can we include and educate people about the newworkplace as part of the process?

It is not as simple as a ‘one size fits all’ philosophy forall companies or even for all staff within a company. Forsome staff having to find their own desk everyday will leavethem feeling unsupported by the company while othersmay appreciate the variety in changing locations within theoffice.

To avoid alienating the staff and spending unnecessarymoney on a fit-out that doesn’t ‘fit’ the clients, it’simperative facility managers understand the company andthe workers before entering into the design process.

It is an ethos championed by Peter Andrew, director ofStrategic Briefing for international strategists, DEGW. Theglobal company offer Australian clients research, strategyand consulting for workspace planning and workplacechange management.

Peter says results can be dire for companies who don’tcommunicate with their staff before, during and after a re-design of their workspace.

“Even when workplaces significantly benefit people thechange still needs to be managed. Even when theworkplace is repeating the status quo it still needs a degreeof management and certainly when you start to pushboundaries in terms of space, you need to properly managethat.”

“Difficulties can emerge when a new environment hasbeen imposed on people and they haven’t been involved inthe consultation, you can find workplace performances willstart to fall and staff turnover can increase.”

He suggests clients should engage, listen,communicate, educate and offer the chance to see aspectsof the new workplace before it is in effect.

“But the most important thing is role modelling byleadership, you need to get leadership to start acting in thenew way, it’s not just about telling people how things aregoing to be, it’s about really listening to their ideas andfears.”For many people, non-territorial office spaces can prove themost confronting change to accept but it is likely to becomea commonplace implementation in the future.

Despite Australia’s tendency towards a traditional one-desk-per-person office structure, Peter suggestsworkspaces are changing.

“A very traditional workplace would have a lot ofenclosed individual workspaces, it wouldn’t have a lot ofmeeting rooms and meetings would probably be verystructured events. The behavioural change that’s happeningnow is there are meetings happening in cafes, on streetseven in corridors.

Now people are mixing work spaces to encouragecommunication and network between people in differentparts of the organisation who may not have otherwise hadcontact.”

Companies are using mobility and technology as

means to negotiate staff and clients efficiently throughoutcollaborative and non-territorial work environments.

This makes it important for facility managers to createa space which is generic enough to suit the wholeorganisation but also equipped to provide for the broadvariety of demands that people will face.

“The trend that is happening at the moment is peopleare exploring a diverse combination of individual worksettings, quiet workrooms and meeting and collaborativespaces where teams of 10, 20 or 30 people own theircollective space and move around within that.

“That might allow you to have a diversity of desk types,you might have desk types good for individual,concentrated work and you might have grouped three orfour desks for people to work together. By doing this youcan offer them the mobility to work anywhere within thatspace or from home, it’s moving away from the idea thateach worker owns their space and it has to do everythingfor them, instead they move around to different spaces thatsuit their need.”

The future of space planning is fast moving away frombeing a real estate solution to a business solution. Beforespace planning an office fit-out, Peter suggests facilitymanagers find a sponsor high up in the organisation who isvery clear on the company’s vision and who understands towhat degree the workspace solution is expected to aidbusiness imperatives. “They need to understand whatbusiness metrics are going to be used to measure theperformance of the workspace.”

He stresses the impact effective space-planning canhave on potential clients.

“It’s not just what it looks like, it can be the way youtreat your people or the way you treat your customers interms of the space or the service you provide them. Are youputting up all your money in a flashy reception or are youinvesting in a high quality workplace where people canwork effectively?

Before leaping into a complete overhaul of your oldworkspace, Andrew points out that changing the officeenvironment just for the sake of it is not the right answerfor any company.

He suggest companies need to create a vision of howthey want to work in the future, establish what the gap isbetween the way things are currently being done andassess what that means in terms of the physicalenvironment.

“I want to point out that changing a space doesn’tmake sense unless the space has fallen behind where youare culturally. If you want to repeat what you already have,if you don’t want to change your culture or behaviour or ifyou don’t want to investigate any kind of new workplacethen just jump straight into the design process and copywhat you’ve already got.

But if you’re interested in innovation in terms of abuilding/space and what benefits its role brings anorganisation then you absolutely need to go back a stepand undertake a conception/innovation process, before youeven draw a line on a paper.”

Kirsten Smith from Change Angels encapsulates whyFacility Managers should treat space planning as a way tomeet and exceed business objectives.

“A workplace that evolves with the company’s way ofdoing things will make it more conducive to painlessconstructive change and mean less money, time anddisruption to a business’ trajectory.”


SPACE PLANNING


FILING, STORAGE & RECORDS MANAGEMENT

Facility management:the informationchallengeBy Rohan Langdon

The Facility ManagementAssociation of Australia andonline information managementcompany Aconex recentlyundertook what’s thought to bethe first research into facilityinformation managementpractices in Australia. The resultsmake interesting reading for FMprofessionals and reveal currentpractices, pain points, andpossible solutions to this criticalbusiness area.



The Information AgeHow much information does a facility manager need tomanage? Tenancy layouts, health and safety information,as-built drawings, lease agreements, structural drawings,asset registers, operations and main tenance manuals,emails, correspondence, etc. etc. The list is almost endlessand, in today’s information age where people andorganisations are increasingly interconnected, it is easy toreach the point of information overload, where the sheervolume of data generated threatens to overwhelm our abilityto do our job.

Global market intelligence firm, IDC, estimates thattoday’s workers spend up to 2.5 hours a day, or 30% of theirwork time, looking for information. Further studies from FordMotor and the Association for Information and ImageManagement suggest that information workers spend 15-25% of their time on non-productive information-relatedactivities. All this is time not spent doing tasks of real valueto the organisation. And IDC project that the number ofbusiness-related electronic communications – email,correspondence, instant messages, meeting requests – willincrease five-fold between 2004 and 2008.

For FM professionals, information management is acritical business enabler. To perform our jobs effectively, wemust be able to find and retrieve information, collaboratewith stakeholders, and capture and store documentation inthe most efficient manner. Failure to manage this can resultin issues with finding and retrieving information, financialloss from missed deadlines, work being undertaken usingout-of-date documentation and other detrimentalconsequences.

ResearchDespite being fundamental to the facility manager’s role,

there is little current validated data on how facilityinformation is managed, or on how processes can beimproved and best practice achieved.

For this reason, the Facility Management Association(FMA Australia) partnered with online informationmanagement company Aconex to survey the practices,systems and tools used in the Australian FM industry, and toassess technology solutions that may take the industryforward.

Research for the report was conducted via an onlinequestionnaire, which was completed by 555 FMA Australiaprofessionals. Respondents represent all Australian statesand territories and work in a variety of built environments.The majority of respondents were facility managers, withdirectors, general managers, project managers andconsultants also represented.

The overwhelming majority of respondents (85%)identified the following three areas as most critical to facilityinformation management (FIM):u Finding and retrieving information

u Collaborative information access among multiple partiesu Capturing and storing information efficiently

Finding and retrieving informationBy far the greatest area of concern is finding and retrievinginformation. As the industry grows and practitioners becomeresponsible for an increasing number of facilities, theirreliance on timely access to current and accurateinformation, as outlined in the table below, is growing.

Given the breadth of responsibilities within theprofession, managers stated that they needed to access acomprehensive suite of information. However, finding theinformation is an area of significant cost, both in terms oftime spent searching and in terms of consequential damageas a result of dealing with dated and/or inaccurateinformation. Findings within this area include:u Only 25% of respondents can find the information they

require within ten minutesu 70% have worked from out-of-date informationu A quarter of respondents regularly reproduce

information because they cannot find itu Up to a third of organisations have suffered financial

loss due to missed deadlines on leaserenewals/agreements or service contracts.

Collaborative information access for multipleparties

Respondents to the survey said that they were facedwith the task of managing multiple sites, managing teams ofvarying numbers, dealing with multiple stakeholders andproviding accurate information to senior management. It istherefore little surprise that ‘collaborative informationaccess for multiple parties’ was the second highest priorityfor facility managers. The survey found that:u In 70% of cases, five or more people were responsible for

information management at a facility; in 29% of cases,20 or more people were responsible

u Email, phone and fax are still the most commonmethods of communication with external parties

u 77% of respondents need access to information for morethan one facility at a time.

Capturing and storing informationCapturing and storing information is the third greatest

area of concern for respondents. Effective storage practicesthat provide for information retrieval make it easier to shareinformation. Correct storage therefore greatly reduces theproblems associated with finding and sharing information.u Excel spreadsheets, shared network drives and hard

copy filing are widely used, but inherent problems werereported with each.

u At present, 40% of information is stored electronicallybut the industry believes that in 2 years this will doubleto 80%.

ResponsePercent

I can find everything quickly 11%

I can find the documents I regularly need 27%

I know where most information is located 46%

I often have to search for what I need 15%

I always seem to be looking for information 1%

Which statement best describes your ability to locate facility information?



u Some facility managers are facing legal disputes due tolost or inaccurate information.

u 55% of all information a facility manager uses is from thedesign and construction phases, yet 44% of facilitymanagers stated that little of this information wasavailable to them at handover.

u When asked: ‘How useful would it be to capturedocuments and correspondence into a central archivefrom the start of the design and construction phases ofa project?’ 98% said it would be ‘Useful’ or ‘ExtremelyUseful’.

One Solution: Collaboration TechnologyRespondents overwhelmingly indicated that they want

to move towards electronic information management.Therefore the solution to information management issueswill most likely be resolved by technologies that utiliseelectronic document management and storage.

Recent research from the UK, undertaken by theNetwork of Construction Collaboration Technology Providers(NCCTP) and Benchmark Research Ltd., found that onlineinformation management solutions (aka collaborationtechnology) can benefit FM professionals – directlyaddressing many of the ‘pain areas’ identified in the FMA-Aconex research.

These web-based systems store all facility informationonline in one central location where it can be accessed anddistributed electronically. File revisions are tracked and alldocuments and correspondence are securely archived.

According to the UK research, owners and operatorsusing collaboration solutions to manage facility informationexperienced the following benefits:u 92% of owners/operators benefited from being able to

access documents round-the-clock.u 88% benefited from having an archive of FM information.u 85% said they could amend documents faster and more

easily.u 78% said it cost less to maintain documents.u 78% said documents were more complete at handover.

ConclusionThe FMA-Aconex research indicates there is still a large

gap between what FM professionals need, and their currentinformation management solutions. The report identifiessome of the difficulties and consequential damage causedby relying on traditional systems of informationmanagement. This, in turn, highlights the need forinformation management practices that will enable industryprofessionals to manage increasingly diverse and complexfacilities in a competitive environment.

The FM industry is constantly challenged to present thebusiness case for cost optimisation rather than costreduction. It is beginning to appreciate the cost – in terms oftime, information reproduction charges and litigation risk –of not using the most advanced information managementsystems available.

Compare the FMA-Aconex findings to the UK’s NCCTPresearch, and it becomes evident that collaborationtechnology can address the industry’s most criticalinformation management concerns: finding and retrievinginformation; collaborative access among multiple parties;and capturing and storing information. The adoption ofcollaboration systems also offers significant time savings,capacity to handle greater amounts of information, riskmitigation, continuity following staff changes and, mostimportantly, improved service to clients.

Drawing on the NCCTP’s findings, there is evidence thatthe effective tools and systems provided by collaborationtechnology have delivered significant and measurablebenefits to the construction industry, and that suchtechnology would also provide an invaluable informationmanagement tool for the facility management profession.

Rohan Langdon is FM Manager Australia New Zealand,at Aconex, www.aconex.com, a the world’s leadingprovider of collaboration technology solutions to theproperty development sector. For further informationor a full copy of the report [email protected]

ResponsePercent

Never 29%

Rarely (yearly) 22%

Occasionally (every 6 months) 22%

Regularly (weekly, fortnightly, monthly) 27%

How often does information need to be reproduced because it can’t be located?

40% Electronic

60% Paper

20% Paper

80% Electronic

Now 2 years

How do you store facility information now? How do you think this will change in the future?


STRATEGY & BUSINESS PLANNING

Next practicein corporate real estate

The Project Control Group (PCG) hold a rather unique position in themarketplace as a leading fully integrated provider of propertyadvisory, architecture and design, and project andconstruction management services. So when PCGannounced their key research findings inCorporate Real Estate practices,Facility Perspectiveswas there.

Phot

o co

urte

sy P

roje

ct C

ontro

l Gro

up P

hoto

: Sim

on K

enny

Pho

togr

aphy

Ph

02 9

456

5544



PCG defined CRE as thediscipline that coversall aspects involved inmanaging corporateproperties. Workplaceaccommodation wasdefined as the move ofa company orcompany businessunits from one locationto other premises.

CRE strategydevelopment – 65% of all companiessurveyed have adefined CRE strategy.CRE strategy ispredominantlyformulated by aseparate business unit (38%) or by thefinance unit (41%). A small proportion(21%) organise theirCRE strategy in other ways.



Next to their investment in their staff, CorporateReal Estate (CRE) is usually an organisation’ssecond biggest investment in doing business. Itis not surprising therefore, that defining what

constitutes the successful development andimplementation of a workplace accommodation strategyshould be of great interest.

PCG did exactly that with the release of their researchfindings entitled Next Practice in Corporate Real Estate. Theresearch, conducted in 2006 with senior or “C” levelmanagement, looked closely at how CRE strategy isdeveloped and integrated with overall business strategy,and how its performance is measured. In particular, theresearch concentrated on how companies completeworkplace projects, and examined the drivers for them suchas what expectations existed for the projects, how theprojects were evaluated, how they were delivered; and howthey were planned.

To further qualify the respondents, only companiesthat had undertaken a significant workplaceaccommodation project in the past 12 months or were justabout to, were surveyed, further refining the target sampleto 30 large and fast growing companies in Australia.Research was conducted by Play Communications, anindependent third party.

The Findings1. CRE STRATEGY IS INCREASINGLY INTEGRATED

WITH CORPORATE STRATEGYIn 2000, 52% of companies had a CRE strategy that

was not integrated or only slightly integrated with overallbusiness strategy. By 2006, only 10% of companiessurveyed reported these low levels of integration. At theother end of the scale, in 2006 25% of respondents had aCRE strategy that is fully integrated with their businessstrategy. In 2000, this figure was only 14%.2. CRE IS ON SENIOR MANAGEMENT’S AGENDA

The reasons for senior management’s increasingattention on CRE include: the need to manage costs; theneed for transparency with stakeholders and shareholders;business growth; and the impact on profits.

When asked why they are integrating their CREstrategy with their business strategy, respondentsmentioned:u Awareness of need to manage costs and minimize

risksu Increased demand for transparency and accountability

to stakeholders and shareholdersu Need to allow business growth through CRE strategyu CRE’s potential impact on profit u Increased focus of top management on CRE issues.3. CRE PERFORMANCE IS MEASURED RIGOROUSLY

Corporate Australia uses multidimensional metrics tomeasure CRE performance, and innovative indicators suchas environmentally sustainable design are becoming morecommon.

While the measurement of CRE is complex and varied;almost all respondents use at least two different metrics.The most commonly used performance metric is

occupancy cost/m2 (used by 86% of respondents) followedby occupancy cost/employee (used by 66% ofrespondents).

Notably, 48% of the respondents use environmentallysustainable design (ESD) as a measure of the performanceof their workplace accommodation. This figure shows atrend towards more awareness of environmental issuesand corporate social responsibility, particularly thebusiness community’s willingness to respond toenvironmental concerns.4. CRE STRATEGIES PAY

Workplace accommodation change is accomplishedmore cost effectively when backed by a sound CREstrategy. 68% of companies surveyed that had recentlycompleted a workplace accommodation project backed by aformal CRE strategy, did so within their allocated budget. Ofthose respondents that had completed a project with noformal CRE strategy, 31% had exceeded their budgets bymore than 20%.5. GROWTH DRIVES WORKPLACE

ACCOMMODATION STRATEGYOf those who had recently completed accommodation

projects, the three most significant drivers for change were:

Next to their investment intheir staff, Corporate RealEstate (CRE) is usually anorganisation’s secondbiggest investment indoing business

Industry Break-down of companies surveyed



The secret to delivering successful projects is the capacityto define, design, manage and deliver solutions which aresustainable and endorse the culture of a company

Phot

o co

urte

sy P

roje

ct C

ontro

l Gro

up P

hoto

: Sim

on K

enny

Pho

togr

aphy

Ph

02 9

456

5544

business growth; the alignment of the workplace withbusiness strategy; and cost reduction. These were alsoidentified as the major factors for successful workplaceaccommodation projects.

Tactical issues such as lease expiry and change ofbusiness location are considered less significant.

Notably, the drivers for change were also influenced bythe business unit responsible for crafting CRE strategy.Analysis showed that separate business units areresponsive to strategic drivers for change, but when thefinance unit is responsible for CRE strategy businessgrowth was less significant as a driver for change (36%rated it as significant compared to 46% of organisationswhere CRE strategy was developed by a separate business

unit). Alignment of workplace and business strategy wasalso a less significant driver for change (38% compared to62%), and lease expiry was considered more significant(57% compared to 29%).

At the start of their workplace accommodation project,respondents cited their most important expectations asbeing: a positive impact on workplace culture; a moreflexible workplace; and increased productivity.6. WORKPLACE OUTCOMES: DOLLARS, NOT DESIGN

When it came to workplace accommodation changeoutcomes, respondents cited on-time delivery of projectsand their positive impact on the bottom line as the twomost important key performance indicators. ‘Soft’ factorssuch as cultural change, design or innovation were lessimportant when evaluating outcomes.

In fact, the most valuable outcomes from theirworkplace accommodation project were:1 Delivery on time and within budget2 Positive impact on bottom line3 Increased productivity4 Positive impact on workplace and culture5 Design excellence6 Facilitation of knowledge creation and innovation7 Increased real estate value.7. EXTERNAL PROJECT MANAGERS ENSURE SUCCESS

Although almost 90% of respondents engaged adesigner for their most recent workplace accommodationproject, only 23% felt that they had made a significantcontribution to the success of the project. Project managerswere identified as the most significant factor for a project’ssuccess, with 62% of respondents attributing the projectssuccess to the Project Manager.

When respondents were asked why they believe



Project Managers are important for the success of a project,their responses included:u They consider the broader issues - not just design.u They are usually responsible for driving sub-

consultants and contractors to meet time, quality andcost requirements.

u They are involved in the project from start to finish andhave the greatest overall influence.

u Finally, they balance budget, design and deliveryconsiderations and bring solutions back to the client.All of the respondents engaged external service

providers during their most recent workplaceaccommodation project. Most often engaged externalproviders were architects/designers (90%) and projectmanagers (81%) with 40% using construction managers,head contractors and property advisors. Only 8% ofrespondents had used a strategic workplace consultant.

Respondents that had recently completed a workplaceaccommodation project were asked to rate the importanceof various aspects of service delivery. They rated:1 Reliability2 Cost3 Communication and coordination4 Proven understanding5 Transparency6 Independent advice7 Innovative and creative design.

8. INTEGRATED SERVICE PROVIDERSMAKE HAPPY CLIENTSWhen implementing workplace accommodation change

projects, businesses have a choice: to take the traditionalapproach and appoint several separate service providers; orto engage an integrated service provider. PCG’s researchshows that the majority of respondents (85%) completedprojects using several service providers, but somerespondents voiced concerns about their choice, particularlythe lack of integration between different providers. Incontrast, 100% of respondents who used a single integratedservice provider say they would use the same approachagain.9. PLANNING AHEAD

Respondents mentioned that lease negotiations, designand strategic planning needed more planning time thanthey had allocated in their most recent project. When askedhow much time they had allowed to plan their project, thesurvey found that 60% had started the planning processless than 12 months ahead.

About 20% had started the planning process between13 and 24 months ahead, and another 20% started planningmore than two years ahead.

Given the prevalence of such a short planning period,respondents were asked which stages of the planningprocess they would allow more time for in the future:u 31% of respondents cited lease negotiations and design.


STRATEGY & BUSINESS PLANNINGPh

oto

cour

tesy

Pro

ject

Con

trol G

roup

Pho

to: S

imon

Ken

ny P

hoto

grap

hy P

h 02

945

6 55

44

u 27% stated strategic planning.u 20% stated they would allocate more time to the

change management associated with workplaceaccommodation projects.

Strategic Recommendations1. TOTAL INTEGRATION OF CRE AND CORPORATE STRATEGY

To allow for both business growth and cost reduction,CRE strategy needs to be aligned and integrated withcorporate strategy. This means that the strategy makingprocesses must be organized in an appropriate structure.Best practice gives responsibility for CRE to a separatebusiness unit (either in-house or outsourced), but ensuresthat reporting lines and overall organisational structureallow for maximum integration.2. MEASURE AND MANAGE YOUR CRE PERFORMANCE

You can only manage what you can measure. This istrue for CRE. Next practice uses multi-dimensional metrics,including environmentally sustainable design. However,there is enormous potential to make performancemeasurement more holistic by including ‘soft’ metrics(such as individual or team performance, staff satisfaction,engagement surveys).

Only by doing this can businesses ensure that thesecond biggest expense on their balance sheet (CRE)impacts most effectively on their biggest expense item(staff).3. MANAGING WORKPLACE ACCOMMODATION CHANGE

EFFECTIVELYCorporate Australia expects workplace accommodation

change projects to deliver three key outcomes: a positiveimpact on workplace culture; a more flexible workplace; andincreased productivity.

The research shows that project management makesthe biggest contribution to achieving these expectations.Consequently more emphasis needs to be placed on projectmanagement, and more time spent on strategic planningand lease negotiations.4. WORKING WITH EXTERNAL SERVICE PROVIDERS

Using external service providers for workplaceaccommodation change projects is common practice. Whenit comes to choosing the right service provider, keyconsiderations include reliability, cost, and communication.In fact, our study shows that an integrated team thatunderstands the wider issues of workplace accommodationchange – such as strategic planning, project management,design – is the best guarantee for a successful project.

ConclusionThe marked increase in the integration of business and

CRE strategies reflect the importance of the contributioneffective CRE strategies can make toward corporateobjectives. CRE is now, well and truly part of the strategicplanning agenda, and as the research has highlighted, avital component of CRE is an effective workplaceaccommodation strategy.

The secret to delivering successful projects is thecapacity to define, design, manage and deliver solutionswhich are sustainable and endorse the culture of acompany. Why? Because companies are constantlyevolving and they need flexibility to respond to theirmarkets and employees whilst reinforcing their brandvalues.

The realisation that environmental and economicbenefits deliver value beyond the base measure ofoccupancy cost/m2 for effective CRE, is becoming morecommon. Sustainability and cultural effectiveness are nowkey measures and differentiators across the industry. Thealignment of corporate communication and culture is alsobecoming an integral driver of CRE projects.

ABOUT PROJECT CONTROL GROUPFounded in 1988 in Sydney, Australia, PCG has grownto encompass three key divisions with an annualrevenue exceeding $55 Million. Creating over700,000m2 of corporate workspace in the past 18years, PCG have built their reputation and servicesaround meeting their clients’ needs, a fact proventhrough their 75% repeat customer base. PCG standsas a unique service in that the Group offers a totallyintegrated solution with services which includeproperty advisory, architecture and design, andproject and construction management. Their clientsare property asset owners, managers and occupiers,and include Pfizer Inc, Lion Nathan, Origin Energy,Duke Energy, AT Kearney, Royal Bank of Scotland, ABMauri, AMP, AstraZeneca, Austar, sanofi aventis, W.H.Soul Pattinson Company, Toyota Financial Services,Sparke Helmore, Australian Rugby Union andSouthcorp. Their major government clients includeSydney Water Corporation, Attorney GeneralsDepartment, NSW Health and National ICT Australia.

For more information call Sydney (02) 8249 7500,Melbourne (03) 9607 8424, or visit www.pcg.com.au



Phot

o co

urte

sy P

roje

ct C

ontro

l Gro

up P

hoto

: Sim

on K

enny

Pho

togr

aphy

Ph

02 9

456

5544


ESD & THE ENVIRONMENT

While many school children are taught thewonder and simplicity of the hydrologic orwater cycle and its influence on our naturalenvironment, there is less known about

society’s impact on this cycle, the water usage patterns ofour facilities, and particularly the impact of high waterusage by offices and public buildings. However, lessons forthe built environment are now contained in the new ‘WaterEfficiency Guide: Office and Public Buildings’ by theAustralian Government’s Department of the Environmentand Water Resources (formerly the Department of theEnvironment and Heritage), released in October 2006.

This national publication on water efficiency wasdeveloped in collaboration with the governments of the ACT,New South Wales, Queensland, Victoria, South Australia andWestern Australia, and the new Guide should be consideredan essential reference for all facility managers responsiblefor owned or leased spaces.

The Water Efficiency Guide provides a practicalintroduction to water management plans containinginformation on a range of technical issues, and includes anarray of case studies to demonstrate best practice. Mostimportantly, the Guide makes the case for water

consumption performance management and providesbenchmarking analysis for offices and public buildings.

This Guide is in two parts, the first being the WaterEfficiency Guide for Office and Public Buildings. This part ofthe Guide provides an introduction to the technical andbehavioural opportunities for new and existing facilities, forreducing water consumption and increasing water reuse.

Experience has shown that savings of between 30-40%are often achievable in office and public buildings. Inaddition to adopting water responsible design practices andimplementing operational measures via a facilities plan,facilities managers need to engage with their watersuppliers, most of which now have demand managementstrategies and technical support for users.

The second part of the Guide is the National WaterIntensity Benchmarks for Office and Public Buildings.These benchmarks have been developed from a nationalsample of building water consumption. For office buildings,the average water consumption was found to be 1.125kL/m2 per annum, with best practice being 0.5 kL/m2 perannum. The benchmark set has been expressed using thesame scoring methodology and 1-5 star rating scale as theNational Australian Built Environment Rating System(NABERS) and the Australian Building Greenhouse Rating(ABGR) scheme.

The new NABERS benchmarks adjusted for climate bymajor metropolitan centres, are:

Table 1: NABERS benchmarks for office buildings (kL/m2/year).

For public buildings, a smaller survey sample meant asimpler benchmarking approach. An average water

Water Efficiency made easierWater is a precious resource, there is no substance on earth more crucial to life.Water scarcity is a major issue in many parts of the world including Australia, andthe water challenges confronting us dictate that all sectors must play their part inensuring that our water resources are managed and used efficiently.

Stephen Ballesty

Figure 1: Water saving hierarchy

NABERS Sydney Melb. Canb. Adel. Bris. Perth

1 star 1.73 1.03 0.99 1.08 2.53 1.41

2 stars 1.39 0.86 0.83 0.90 1.99 1.14

2.5 stars 1.21 0.77 0.75 0.80 1.72 1.01

3 stars 1.04 0.69 0.67 0.71 1.44 0.88

3.5 stars 0.87 0.60 0.59 0.62 1.17 0.75

4 stars 0.70 0.53 0.51 0.53 0.90 0.61

4.5 stars 0.52 0.43 0.43 0.44 0.62 0.48

5 stars 0.35 0.35 0.35 0.35 0.35 0.35


ESD & THE ENVIRONMENT

consumption intensity of 3.34 kL/m2 per annum with abest practice target of 2.00 kL/m2 per annum have beenidentified based on the data.

The commercial office building sector is a significantwater end user. For example, office water use can accountfor 10% of capital city water consumption. Working on theprinciple of “if it can be measured, it can be managed”, theGuide strongly emphasises the importance of reporting andmonitoring of progress, which is critical to ensure thatcontinuous improvement is achieved. A moderate sizedbuilding of 10,000m2 typically consumes over 20,000litres per day, or more than 7 million litres per year –enough to supply 40 average homes.

The Water Efficiency Guide identifies where water isused in typical offices and public buildings. It provides arange of practical and cost effective measures for reducingconsumption. Technical and non-technical (managementand behaviour related) measures are addressed, since bothplay important roles in achieving savings and sustainingthem. The Guide also provides appropriate consumptionperformance measures and benchmark targets.

The Property Council of Australia (PCA) recentlyreleased ‘a Guide to Office Building Quality’ (2006) which,amongst other criteria, emphasised the importance ofenvironmental issues by linking ‘green’ rating schemes anddesign considerations to overall office building quality.

Facilities Audits both in Australia and overseas indicatethat over 95% of water use in office buildings can beaccounted for by amenities, cooling towers and leakage.

At this stage, such data is not available for publiccultural buildings such as art galleries, museums, libraries,archives, or performing arts centres, although it would bereasonable to expect that cooling tower consumption wouldbe of the order of 30%, leakage 20-25% and amenitiespossibly 40% or more given the relatively large number ofpublic visitors to such facilities.

The Water Efficiency Guide has the support of theFacility Management Association of Australia (FMAAustralia) and aligns with the spirit of FacilitiesManagement (FM) Action Agenda. The AustralianGovernment and FM industry via the FM Action Agenda areproactively working together across innovation, education,regulatory and sustainability platforms for performanceimprovement. Water Efficiency is just one way we can worktowards achieving a more productive and sustainable BuiltEnvironment.

About Stephen BallestyStephen Ballesty is Managing Director of Rider HuntTerotech, a leading Property Asset ManagementAdvisory firm providing broad range services topublic and private sector clients. Stephen is also theImmediate Past Chairman of FMA Australia andDeputy Chairman of the Australian Government’s FMAction Agenda Implementation Board. He was alsoconvenor of PCA’s Quality Matrix Committee and wasa reviewer for the new Water Efficiency Guide.

For further information visit the following links:www.environment.gov.au/settlements/publications/government/pubs/water-efficiency-guide.pdfwww.sydneywater.com.au/SavingWater/InYourBusiness/FactSheets.cfmwww.environment.sa.gov.au/sustainability/water_resources/index.htmlwww.deus.nsw.gov.auwww.fma.com.auwww.fmactionagenda.orgwww.riderhunt.com.au

Figure 2: Typical office water use


BUILDING UPDATE

Building and safetymeasures updateBy Derek Hendry

Derek Hendry

Those waiting for acomprehensive new

Building Act and BuildingRegulations (in WA) will

have to wait a while


BUILDING UPDATE

Australia wide: Upgrading Fire PanelsSome managers are not receiving the correct advice by

some fire contractors when it is proposed to upgrade anexisting fire indicator panel. A cost is agreed upon and a newpanel is installed. The problem: Hendry Group buildingsurveyors have consistently seen that most buildings alsorequire detectors, some wiring and other subcomponents tobe replaced. Solution: Do not start without the appropriatebuilding approval, and then get a costing.

Australia wide: No Planning Approval?Managers must keep an eye on their building surveyor

(certifier) when a building permit/approval is issued forbuilding works. Building surveyors in most jurisdictions areresponsible for ensuring the building approvaldocumentation complies with the planning approval. It is theowner’s responsibility to obtain a town planning approval.Some building surveyors are not requesting a copy of theplanning approval before checking and issuing a buildingapproval. While it is technically the building surveyors fault,taking this step will ensure a pain-free process for allconcerned.

Australia wide: Vacating? Make GoodUpon the expiry of a tenants lease a number of our

clients come to grief when the tenant vacates. Some clientshave ‘make good obligations’ in the lease which serves thepurpose. Other lease agreements fail miserably for all sortsof reasons. When reletting the space, the client’s new tenanthits a statutory brick wall. Generally, this is because removal(demolition) of partitions and remedial fire stopping ofpenetrations, have not been performed under a buildingapproval or have been performed rather badly. This changesthe incoming tenant’s work schedules and occupation date,as well as requiring extra funds to solve sometimesquestionable ‘exiting’ building works, causing problems forall.

Australia wide: Occupancy ApprovalsA number of controlling authorities (local councils and

fire brigades) are taking an active interest in buildings whichhave Occupation Certificates issued that contain specificconditions. These conditions occur due to the building designcertification process involving performance based solutions,especially fire engineering incorporating active services.Authorities are checking whether the necessary testing of‘full scale’ emergency operational processes that cover allthe active systems are being performed periodically.Managers must obtain a copy of all ‘occupation’ and‘certificate of final inspection’ documents and ensureconditions are being met, or advise the responsible person ofthis statutory obligation.

Australia wide: BCA Energy ProvisionsA number of design consultants who are responsible for

the design documentation to be provided to a buildingsurveyor for the building fabric, external glazing, buildingsealing, light and electric power, hot water supply andinferred maintenance responsibility, are using the buildingsurveyor to educate them by providing documentation whichis not up to scratch.

The building surveyors are finding that a number ofdesign consultants are not conversant with the BCA’s newbuilding energy efficiency measures, and as a consequencebuilding surveyors fees increase accordingly. We suggestthat building owners test their design consultant’s

knowledge of the BCA measures and save themselves someextra and unnecessary fees.

VIC wide: Annual ReportsFacility managers in Victoria who are responsible for the

compliance of building regulation maintenance provisionsfor buildings and larger portfolios need to be mindful of thescale and impact of the following. Mandatory compliancewith Part 12 of the Building Regulations – Maintenance ofEssential Service Maintenance in buildings is now in effect.The regulations require an Annual Essential Safety MeasuresReport (AESMR) is to be issued for every single existingbuilding (not houses) in Victoria before the 13th June 2009

For facility managers with larger building portfolios, thelogistics of preparation, sourcing contractors, performingmaintenance and the issuing of an AESMR will make singledate compliance totally impractical. Remember, you arecertifying for the preceding 12 months of compliance relativeto maintenance. Your systems, contractors and verificationmethods must be up to scratch for you to sign each AESMR.

You should stagger your 12 month commencement datefor each building well before the last 12 month periodcommences so you, your consultants and contractors havethe time and capability to provide the services you need.

NSW wide: Be AlarmedManagers responsible for shared accommodation

buildings where people sleep now have an extra duty of care.It is now a statutory requirement to have installed smokealarms in shared accommodation buildings (includinghouses). If the building owner has not authorised theinstallation of smoke alarms, then managers should place onrecord, a written request of the owner to comply with thisstatutory requirement. Always advise the client or owner oftheir statutory obligations.

NSW wide: BASIX and AlternationsBASIX (Building Sustainability Index) ensures homes are

designed to use less potable water and be responsible forfewer green house gas emissions. BASIX now applies toresidential alterations and additions, including largeswimming pools. Ensure your building certifier adheres tothese new requirements: If your certifier doesn’t, then aretrofit will be very unpleasant for all concerned.

QLD wide: New Fire ActFacility managers responsible for buildings in

Queensland should be aware of Queensland’s new Fire andRescue Service Amendment Act 2006. Some pertinentsections of interest include: defining responsibilitiesbetween tenants and lessors in regards to maintenance ofsmoke alarms, occupancy limits for certain licensedpremises, strengthening capacity to charge for unwantedalarms, extra powers for fire investigators and an increase inpenalties. Protect your position by ensuring thoseresponsible for ensuring compliance are advised by you inwriting.

WA wide: Wait AwhileThose waiting for a comprehensive new Building Act and

Building Regulations will have to wait a while. The Billintroduced last year into the Legislative Assembly did notprogress through before Parliament rising in December. TheBill has yet to be debated, and passed before drafting of theregulations can begin. Let’s hope this long awaitedlegislation receives swift passage.


LEGAL + COMPLIANCE

Independent contractors –the new legal environmentBruce Moore ( Special Counsel), and Elena Pappas (Solicitor), Maddocks

Anew legal regime to govern independent contractors is to come into operationon 1 March 2007. In a further exercise of the “corporations” power in theConstitution, the Federal Parliament has enacted laws which have four maineffects:

u to supplant laws in some States which have enabled an independent contractor toseek review of “harsh” or “unfair” contracts in State tribunals;

u to continue, with some variations, the established “unfair contract” reviewmechanisms in Federal Courts as the sole means by which an independentcontractor may seek review of an unfair contract;

u to override certain State laws which deem persons who are independentcontractors to be employees for some purposes;

u to establish prohibitions on ‘sham’ independent contractor arrangements.Bruce Moore

Elena Pappas

Phot

o co

urte

sy Tr

ansfi

eld


LEGAL + COMPLIANCE

The Independent Contractors Act

AimsAccording to the Explanatory Memorandum, the aim of

the Independent Contractors Act 2006 (“the IC Act”) is to“recognise and protect the unique position of independentcontractors in the Australian workplace.” It does this byasserting that these types of contracts are primarilycommercial and should not be regulated by industrial law.It seeks to ensure that the States’ unfair contractsjurisdictions, and some provisions of State laws deemingcertain arrangements to be in the nature of employment,are overridden by the new Commonwealth “unfaircontracts” regime.

To whom does the IC Act apply?The IC Act applies to a contract for services:

u to which an independent contractor is a party; andu that relates to the performance of work done by the

independent contractor; andu that has the “requisite constitutional connection”.

The “requisite constitutional connection” exists whereat least one party to the contract is a constitutionalcorporation, the Commonwealth or a CommonwealthAuthority or a body corporate incorporated in a Territory.

Alternatively, the requisite constitutional connection willexist where the work under the contract is wholly orprincipally performed in a Territory, the contract enteredinto is in a Territory or at least one party resides in or has aprincipal place of business in a Territory.

A “constitutional corporation” is a trading or financialcorporation or a foreign corporation but is not furtherdefined in the IC Act. The scope of the legislation in thisrespect will therefore be governed by the establishedfactors to determine whether a corporation is, in particular,a “trading” corporation or some other form of constitutionalcorporation.

So, for example, an individual who enters into acontract to provide IT services as an independentcontractor to a commercial manufacturing company wouldbe covered by the IC Act.

However, the IC Act does not provide a definition of‘independent contractor’. Rather, it relies on the establishedcommon law multi-factor test which assesses the totality ofthe relationship between the parties. The determination ofwhether a contract is “for services” (i.e. establishes anindependent contractor relationship) or is “of service”(establishes an employment relationship) is complex, andheavily reliant on judgements about the factual matrix. Thecontinued reliance by the IC Act on the common law


LEGAL + COMPLIANCE

definition does nothing to reduce the level of uncertainty inits application.

Exclusion of State and Territory lawsThe IC Act is designed to ensure that, in the majority of

circumstances, “genuine” independent contractors will begoverned by the terms of their contracts (i.e., subject to thecommon law) and the laws of the Commonwealth’s newunfair contracts regime.

The IC Act aims to prevent State law restrictions on“genuine” independent contracting arrangements byexcluding certain State and Territory laws which limit theability of independent contractors to enter into“commercial” agreements e.g. by deeming an independentcontractor to be an employee for certain purposes.

The excluded laws are:u some that treat a party to a contract for services (a

services contract) as an employee or employer inrelation to “workplace relations matters”1; and

u those that relate to workplace relations matters andconfer or impose rights or obligations on a party to aservices contract. However, those State and Territory laws which relate to

outworkers and owner-drivers are intended to continue intheir operation.

The IC Act does not affect any State or Territory law(even if it treats an independent contractor as anemployee) unless that law deals with “workplace relationsmatters”. There are many State and Territory laws dealingwith the employment relationship and treating independentcontractors as employees, and principals as employers, formany purposes in specified circumstances including pay-roll tax and workers’ compensation. These laws are notaffected by the IC Act.

The Services Contract Review SchemeThe new scheme is broadly similar to the long standing

(but infrequently used) provisions of sections 832-834 ofthe Workplace Relations Act 1996 as amended by the WorkChoices legislation. With the new IC Act coming into effect,those provisions are now repealed.

The new development is the intent to provide a singlenational forum through the IC Act for certain independentcontractors to seek review of their contracts on limitedgrounds, and to exclude the operation of State laws as setout above.

This new scheme enables a party to a services contractto apply to the Federal Magistrates Court or the FederalCourt for a review of the contract on grounds that it is unfairand/or harsh.

There are a number of “services contracts” which areexcluded from review under the IC Act: u the “domestic work” exclusion: contracts for the

performance of work for the “private and domesticpurposes” of another party to the contract areexcluded;

u the “incorporated contractor” exclusion: any contractfor work by an independent contractor where thecontractor is a body corporate is excluded from review,unless work under the contract is “wholly or mainly”performed by a director of the contractor or by a familymember of the director.So, an independent contractor who is an individual, a

partnership or a small family company (where most of thework is performed by company directors or by familymembers) will be able to make an “unfair contract”

application.In determining whether a contract is unfair and/or

harsh, the Court may have regard to:u relative strengths of the bargaining positions;u whether any undue influence or pressure, or unfair

tactics, were used; u whether the contract pays less than the rate of

remuneration for an employee performing similar work; u any other matter the Court thinks is relevant.

In determining whether a contract is “unfair” or “harsh”,the Court is restricted to considering the terms of thecontract at the time it was made. To the extent the Courtmay take account of other matters, the Court may onlyconsider them as they existed when the contract wasmade.

After reviewing a services contract, the Court maymake an order either to set aside the whole or a part of thecontract or to vary the contract. There is no statutorypower for the Court to award any amount of monetarycompensation as such under the IC Act, but this could arise(e.g. if a contract is varied) through the Court’s accruedjurisdiction.

In common with some provisions under the WorkChoices legislation, the Court is not permitted to awardcosts except in very limited situations. This provisionremoves some of the usual disincentives to pursuit of legalaction.

Given the limited use of similar Federal law provisionsin the past, it remains to be seen how frequently andextensively unfair contract claims are made under the ICAct.

Transitional ArrangementsState and Territory laws which deem independent

contractors to be employees will continue to apply to anexisting contract between parties during a 3 yeartransitional period. These laws will apply until either thecontract comes to an end, the parties to the contract electto bring the transitional period to an end, or at the end ofthe 3 year transitional period.

There is also provision for regulations in relation totransitional matters.

Preventing ‘sham’ independent contractorarrangements

The Workplace Relations Act 1996 (“the WR Act”) hasnow been amended so as to prevent ‘sham’ independentcontracting arrangements – that is, where an employerseeks to avoid responsibility for legal entitlements due toemployees by “disguising” the employees as independentcontractors – by introducing penalties where thesearrangements occur.

The new statutory provisions prohibit the followingconduct:u misrepresenting an employment relationship or a

proposed employment relationship as an independentcontracting relationship (sections 900 and 901);

u dismissing or threatening to dismiss an employeewhere the sole or dominant reason is to then engagethat employee again as an independent contractorperforming the same or substantially the same work(section 902);

u knowingly and intentionally making false statements inorder to persuade or influence an employee to becomean independent contractor performing the same orsubstantially the same work (section 903).


LEGAL + COMPLIANCE

These provisions attract civil penalties of $6,600 for anindividual or $33,000 for a body corporate if contravened.An application for an order imposing these penalties may bemade by a workplace inspector, a person affected by thecontravention or a union of which the affected individual isa member.

There is no express or direct remedy in the newprovisions for the benefit of the individual employee who isaffected by the “sham” arrangement. However, if as aconsequence of the sham arrangement an employee doesnot receive their full entitlements as an employee, thoseentitlements could be recovered in other ways.

Defences available to employersA statutory defence to an alleged breach of section 900

or 901 will be established if the employer can prove that:(a) it believed the contract was a contract for services and (b) it could not reasonably have been expected to know

that the contract was one of employment.Amongst other elements, these

factors in relation to allegedbreaches of sections 900 and 901may have the effect that it will bevery difficult to prove breach, exceptin the most obvious cases.

On the other hand, section 902includes a “reverse onus” provision.It is presumed that the employer’ssole or dominant purpose indismissing or threatening todismiss an employee was to re-engage the employee as anindependent contractor, performingthe same or substantially the samework, under a contract for services,unless the employer can proveotherwise.

The reason for the reverse onus, provided in theExplanatory Memorandum, is that the purpose allegedwould be within the defendant’s knowledge. Thus thepurpose would be significantly easier for the defendant todisprove than for the applicant to prove. (This approachbroadly mirrors sections 792 and 809 (freedom ofassociation) of the WR Act).

Some implicationsOverall, the legislative changes are not as profound as

they might have been (e.g. there is no statutory definitionof an independent contractor). The main effect of thechanges will be to effectively remove ‘unfair contract’challenges under State laws by independent contractorsand to overcome State laws requiring independentcontractors to be regarded as employees for somepurposes. This will focus attention on ‘unfair contract’proceedings under the new IC Act.

An application under these provisions will be a costlyand time consuming exercise. The determination ofwhether a person is a contractor or an employee remainscomplex, requiring examination of all the circumstances byreference to the detailed multi-factor test.

The WR Act does not provide a codified definition of thetypes of contractual relationship at issue, and leaves it tothe common law to provide the requisite test. Whilst manyemployment arrangements are clear-cut and aredefinitively “employee/employer” or “principal/independentcontractor”, there can be many marginal situations where

the characterisation is not clear. In such cases, there isoften an unsatisfactorily murky environment for acontracting party to have to prove a belief, and a basis fornot reasonably knowing that the contract was of onespecies rather than another.

In order for an employer to establish that it could notreasonably be expected to know that the relationship wasone of employment, the employer may well need todemonstrate it has sought legal advice. But such a processitself raises further issues and may not resolve thequestion definitively – for example, the question of legalcharacterisation of a contract usually depends not only onits terms but also on how it is applied in practice. It is notclear from the legislation whether it is only the expressterms of the contract which are to be referred to.

Where that leaves small business (perhaps most likelyto be at risk of penalty) is anyone’s guess. Interestingly,the very vagueness of the legal test may make it easier fora small business to prove that it could not be expected toknow the nature of the contract at law.

The operation of the IC Act and WR Act provisions ismost likely to be tested in industries with substantial use ofindependent contractors including building andconstruction, cleaning and catering and informationtechnology.

Employers should be aware of these changes,particularly when considering issues in relation torestructuring their commercial operations.

In relation to more specialised employment-relatedmatters, the line between who is an employee and who isan independent contractor remains blurred, in the absenceof a statutory definition. Employers would be prudent toseek legal advice – not only to ensure that their contractualarrangements do not fall foul of the “sham” provisions, butalso to assist with determining that the contracts are notsusceptible to challenge, as being “harsh” or “unfair”.

About MaddocksMaddocks is an Australian commercial law firm with43 partners and 290 people across offices in Sydneyand Melbourne. They offer proven legal and strategicexpertise in a broad range of practice areas andindustry sectors to clients that include emergingbusinesses, government and major corporations.For further Workplace Services information,please contact Sydney on (02) 8223 4100,Melbourne on (03) 9288 0555. Website: www.maddocks.com.au.

1 Workplace relations matters are defined to include remuneration,

allowances, leave entitlements, hours of work, enforcing or terminating

employment contracts, making, enforcing or terminating agreements

relating to employment, disputes, industrial action and any other

matter relating to employees or employers that is dealt with under the

Workplace relations Act 1996. Laws whose operation is not excluded

by the IC Act include, but are not limited to, those relating to

discrimination, superannuation, workers compensation, occupational

health and safety, wage or salary deductions, consumer rights or

taxation.

Overall, the legislativechanges are not asprofound as theymight have been


INDOOR ECOLOGY SIG

2007 – The year of indoor Over the last three years, the FMA Indoor Ecology (IE) SpecialInterest Group of FM professionals has been quietly assisting indeveloping the platform for facility managers to deliver IndoorEcology and its benefits.

Phot

o co

urte

sy P

roje

ct C

ontro

l Gro

up P

hoto

: Sim

on K

enny

Pho

togr

aphy

Ph

02 9

456

5544


INDOOR ECOLOGY SIG

The wave of Sustainability has firmly captured thefocus of all of the major Associations. Practitionersare now firmly engaged in achieving maximumsustainability gains through the use of the external

ecological tools for energy, water and waste efficiencyranking.

Riding the crest of that wave has been Indoor Ecology,as the focus has justifiably shifted to the efficiencies thatcan be made with an organisation’s biggest expense - itspeople (the building occupants).

And it’s not hard to see why. At a ratio of business/ staffcosts to energy/water costs in the order of 100:1 for typicalservice organisations that occupy office buildings, Indoor orFacility Ecology and its impact on occupant well-being, itsproductivity assessment practises and information candeliver substantial savings to business.

Leading the way are organisations like FMA Australia,PCA, GBCA, DEUS, SAA and the FM Action Agenda, who areworking with key specialists to develop and release tools,guidelines and ratings to measure performance in IEQ andrelated factors.

Some definitionsFacility Ecology refers to the interaction of the

occupants and the built facility that optimises sustainablewellbeing and productivity of the occupants andsustainable environmental performance of the building. Itinvolves the following:u Building Design and locationu Facility and Corporate Managementu Risk Managementu Indoor Environment Quality (IEQ) as determined by:

u Indoor Air Quality (IAQ)u Light and outlook;u Acoustic Comfort;u Radiation;u Décor; andu Layout and ergonomics.Indoor Ecology focuses on the interaction of the

occupants with the internals of the buildingFigure 1 below indicates the importance that the

various Australian rating tools place on Facility Ecology,Indoor Environment Quality and materials of constructionand fitout.

Research evidence has increasingly confirmed linksbetween indoor environment with occupant wellbeing andcomfort problems. It is unlikely facility ecology issues willever be eliminated due to the complexity of interactingpressures from regulators, owners, designers, occupiers,the public and the environment. However, occupantdissatisfaction with the indoor environment can be

environmental quality


INDOOR ECOLOGY SIG

minimised by monitoring and understanding thesymptoms, causes and sources of complaints andimplementing and measuring effective managementstrategies.

Many factors influence the quality of indoorenvironments including:u noise and vibration;u natural light and outside view;u workstations;u space and privacy;u personal control of environmentu airborne pollutants;u draughtsu ventilation effectiveness and Carbon Dioxide levels;u decor and furnishings;u temperature and air humidity;u lighting;u glare;u worker and management relationships;u work or job role; andu pre-existing health and behavioural conditions.

As indoor ecology issues, they are within the control ofthe building manager and since they affect occupantwellbeing and productivity, they must be recognised andmanaged preferably in a preventative and rational manner.Accurate and reproducible information, properly interpreted,universally owned and accounted is the key to effectiveand efficient Facility Ecology Management. The facilitymanager is well placed to initiate a holistic and continuingview of a building’s indoor environment quality. If convertedto financial terms, facility managers will have the tools todemonstrate their critical role to the board and participatein both opportunity and expenditure cost planning.

Most Australians spend the majority of their workinglives indoors – their comfort is influenced by buildingdesign, use and management.

Building problems which go unrecognised or areneglected can lead to building, staff, business andregulatory problems.

Tenants increasingly specify environmental quality andfrequently influence the facility ecology in their ownenvironment. Nonetheless, the facility manager canexercise managerial skills with tenants by advising them on

how to improve the performance of occupied space.In this way, facility managers can have a greater

contribution to business performance financially, sociallyand environmentally and hence enhance their status in theorganisation and for property management in general.

Techniques now exist to estimate the effects that theindoor environment has on occupant wellbeing andproductivity and to rate or benchmark relative performance.This is a very active area of research internationally, andAustralia is leading the way in rating the built environment.

The National Australian Built Environment RatingScheme (NABERS) rates a building on the basis of itsmeasured operational impacts. NABERS was developed bythe Commonwealth Government Department ofEnvironment and Heritage and is now being commercialisedby the New South Wales Government Department ofEnergy, Utilities and Sustainability (DEUS). NABERS is aperformance rating scheme for existing buildings, includinghomes or commercial offices. It is designed to provide anindication of how well a building is managing itsenvironmental impacts.

NABERS Office is intended to rate buildings on a fullrange of measured operational impacts. Environmentalindicators forming NABERS are being developed andlaunched sequentially.

Presently, a rating scheme exists for energy (AustralianBuilding Greenhouse Rating) and water. A rating scheme forwaste is nearing completion while a rating scheme forIndoor Environment Quality (IEQ) is nearly complete.

The focus on indoor environment has evolved overrecent decades:u 1970s: thermal environment;u 1980s: ventilation;u 1990s: indoor air quality (IAQ), IEQ and low emitting

building materials; andu 2000s: healthy buildings and the relationship between

IAQ/IEQ with occupant productivity and well-being.Acceptable IAQ is defined by the World Health

Organisation (WHO) as follows:“The physical and chemical nature of indoor air, asdelivered to the breathing zone of building occupants,which produces a complete state of mental, physicaland social well-being of the occupants, and not merely

Figure 2: Research activities on various indoor pollutants over time.

IMPROVE PRODUCTIVITY IN THE WORKPLACE AND REDUCE ABSENTEEISMPlants not only look good, research has shown that productivity is

improved when people are in close proximity to plants, and

absenteeism is also reduced. There is a feeling of wellbeing when

people are near living plants – this is a direct result of the plants

cleaning the air by removing VOCs.

Volatile Organic Compounds (VOCs) are chemicals emitted from

fixtures and fittings, furnishings, paints, glues, deodourants, and

cleaning compounds. VOCs promote irritation of eyes and skin, sore

throats, headaches, nausea and a feeling of general discomfort.

Indoor plants offer an attractive solution. Recent research by the

University of Technology, Sydney, supported by Horticulture Australia,

has looked at the ability of common indoor plants to remove

dangerous toxins such as n-Hexane and Benzene.

It was found that it is the pot plant system – the plant-soil

combination, not just the plant – which aids toxin removal, and that

cut flowers do not produce the same effect. For best results healthy

plants are needed in healthy soil. It is the microorganisms of the

potting mix that are the ‘rapid response agents’ in VOCs removal.

Bringing greenery indoors makes more than just good design

sense. Plants not only make the work place look better, they also help

detoxify the air and assist workers and customers to feel good. With

the removal of VOCs, employees unknowingly appreciate the cleaner

air and this leads to improved health, productivity and job satisfaction.

Customers feel it too. Clean air is one element that aids in the

generation of relaxation and enjoyment of a venue.

SO, WILL ANY PLANT DO?During research for future space stations and closed environments,

America’s National Aeronautics Space Administration (NASA) found

that virtually every tropical plant and many flowering plants are

powerful removers of indoor air pollutants. They found that one plant

is needed for every 27 cubic meters of air to be effective in removing

pollutants from the air, thus producing clean air.

The researchers from UTS concluded that Kentia Palms remove

90% of Benzene after about 24 hours in a room-sized chamber. Other

successful plants are Spathiphyllum (Peace Lily), Dracaena (Janet

Craig, Warneckii, Marginata), Aglaonema modestrum (Chinese

Evergreen), and Epipremnum aureus (Golden Pothos).

OTHER BENEFITS OF INDOOR PLANTSIndoor plants have other unique qualities. They provide attractive and

moveable barriers that can hide toilet entries, the back door, stop

customers from wandering into ‘staff only’ areas, and enable

sectioning off for functions. Additionally, plants provide an effective

noise barrier and reduce total noise ambience.

Some places opt for artificial plants to enhance the decor. But,

artificial plants don’t produce clean air – and in fact use plastics and

glues that break down over time and add to the pollutants in the air.

Stylishly designed indoor planting can provide an inexpensive,

flexible, portable and aesthetically attractive bio-filtration system for

indoor air. Businesses need to embrace this opportunity, not just for

the great ambience, but also for GOOD HEALTH and GOOD PROFITS.

WHERE CAN I FIND THESE PLANTS?If you want to look after and maintain your own plants, they can easily

be purchased from local gardening centres like Plants Plus.

However, hiring indoor plants from companies such as Tropical

Plant Rentals, a national provider who offers an effective solution

tailored to your requirements, is another option. Professional plant

rental companies have experience in air cleaning indoor plants,

ensuring the right plants are used for your individual needs, and

providing regular maintenance for your peace of mind.

The best lookingvenues are ‘green’

Freecall: 1800 631 365www.tropicalplantrentals.com.au

It’s Great Being Green…and we make it easy

• National branches and OH&S compliance

• Unconditional 30 day money back guarantee

• Free 24 hour customer hotline

• Flexible permanent or temporary hire

• After-hours installation and non-intrusive servicing

• Trained horticulturists on hand

• Expert advice in reducing

VOCs and noise pollution

using indoor plants

A D V E R T O R I A L

I M P R E S S I V E , C O N V E N I E N T , C O S T E F F E C T I V E

Here’s a taste of what we offer: • Range of beautifully presented machines • 1/5th the cost of buying from a cafe • Repair or replace any machine within 24 hours • Gourmet coffee delivered directly to you• Choose rental or flat rate • Onsite training provided• Offices throughout Australia

CAFÉ COFFEE(at a fraction of the cost)

Free Call 1800 81 51 91

by Alison Swaddling BA, BSC(Hons)

CLIENT FEATURE


INDOOR ECOLOGY SIG

the absence of disease or infirmity.”The late Professors Ole Fanger and Marco Maroni, the

acknowledged fathers of air conditioning and indoor airassessment, appealed to aiming well above maintenance ofwellbeing. Professor Fanger introduced the concept, in thisage of city pollution, of aiming for enhancing of air qualityindoors – bringing a similar relief to that of cooling indoorson a hot day. Acceptable IEQ would add to the abovedefinition, aspects such as noise, lighting and buildingdesign.

Embodied in the above definition is that the attainmentof acceptable IAQ/IEQ is more than meeting recognised

standards and guidelines, but theconsideration of the well-being ofthe occupant. The productivityand wellbeing of the occupant isthe central factor for consideration– the aim of office environments.

The evidence that IEQsubstantially influences well-being and productivity isbecoming strong. Somecalculations show that the cost ofdeteriorated indoor environmentsis higher than buildingmaintenance and operationalcosts1. Indeed some 80% of theannual cost of an office building isthe staff wages, salaries andbenefits. Small changes inoccupant productivity caused byIEQ can have an enormous costimpact.

The Chartered Institution ofBuilding Services Engineers(CIBSE) has shown that staffcosts are 100 to 200 times thecost of energy and these costs

can be off set by a 0.5 to 1% reduction in staff costs2. Staffcosts are 20 to 44 times the HVAC running cost and so aproductivity increase of 2% to 5% can off set this cost.

The situation overseasCetec has been a key participant in developing

guidelines for the past 15 years. Through its overseasnetwork Cetec conducted a survey of international practicefor IEQ management by building owners and managers, andfound that international practice is similar to Australia,where assessment for IEQ/IAQ is limited in scope and doneto show conformance to guidelines.

To improve the IAQ and promote public awareness ofthe importance of IAQ, Asian countries have implementedan IAQ management programs involving voluntary andcompulsory IAQ Certification Schemes for offices and publicplaces.

The key features of the Hong Kong scheme is:u A 2-level IAQ objectives (Excellent Class and Good

Class) is used as the benchmark to assess IAQ ofpremises/buildings;

u A voluntary and self-regulatory approach is adopted forannual certification;

u Participation is free but premises/building owners ormanagement are responsible for all expenses,including but not limited to, employing competentexaminers to assess IAQ of their premises/buildingsagainst the IAQ objectives;

u Competent examiners will issue an IAQ certificate forpremises/building owners or management to registerwith the IAQ Information Centre if the IAQ objectives arecomplied with. The certificate is intended to bedisplayed in a prominent location for publicinformation.The IAQ measurements of the Hong Kong scheme

involve temperature, relative humidity, air movement,carbon dioxide, carbon monoxide, PM10, nitrogen dioxide,ozone, formaldehyde, volatile organic compounds, radonand airborne bacteria. Airborne fungi are to be included atthe next review of the scheme.

The scheme details the sampling criteria (period, pointsand location), measurement methods and compliancerequirements:u The certificate is valid for 12 months. For certificate

renewal, a full set of parameters on IAQ objectives aremeasured once every 5 years, and for the 4 years inbetween, only carbon dioxide and PM10 need to bemeasured annually if certain conditions are met;

u Certification is generally made on the basis of abuilding as a unit. Nevertheless, premises/buildingowners or management can choose to certify certainparts or certain floors of a building; and

u Premises/building owners or management have tomanage post-certification IAQ to ensure IAQ ismaintained at the certified level.South Korea has recently introduced legislation known

as Public Facility Indoor Air Quality Management Regulation.This regulation involves:u Applicable to public facilities or spaces such as

transport termini (train, bus, airport, ship/ferry),libraries, museums, galleries, medical centres, childcare centres, aged care facility and indoor parking lots;

u The managers of the above areas are to be educated inthe principles of IAQ. The training is to be provided bythe environmental authority;

u New buildings are to have a pre-occupancy IAQassessment and be certified as meeting the specifiedparameters. The pre-occupancy assessment involvesthe determination of formaldehyde and selectedvolatile organic compounds;

u The environmental authority is to publish a list ofbanned construction materials. This list is based upon aspecification for formaldehyde and volatile organiccompound emissions rates from building materials;

u Ventilation must be provided; andu Existing buildings to meet specified limits for IAQ

parameters such as PM10, carbon dioxide,formaldehyde, airborne bacteria, carbon monoxide,nitrogen dioxide, radon, volatile organic compounds,asbestos and ozone.

Measurement metricsAn individual’s performance can be affected by factors

including the working environment, personal motivationand the ability to perform a job. The working environmentcomprises indoor climate, such as temperature, ventilation,noise, lighting etc, the facility services like cafeteria andmail service as well as infrastructure like workstationlayout, landscaping etc.

It may be imagined that the ideal office environmentrequires comfortable temperature and humidity, anadequate supply of clean outdoor air, appropriate airdistribution within the space, low levels of contaminants,and good communication between building occupants and

Building problemswhich go unrecognisedor are neglected canlead to building, staff,business andregulatory problems.


INDOOR ECOLOGY SIG

building operators.Some of these indoor environment parameters can be

quantitatively measured, while others require evaluation ofoccupant perception or satisfaction.

The overall quality of indoor air is influenced by thermalacceptability and air contaminants. This section provides adescription of the more common pollutants found in indoorair. These pollutants can originate from outside the building,from the building (mechanical ventilation system orconstruction materials) or the occupants.

Figure 2 shows how research activities haveprogressed in the field of indoor pollutants during the lastdecades.

Pollutants that affect occupant wellbeing andproductivity can be classed as chemical, particulate andmicrobial.

The WHO defines volatile organic compounds (VOCs) asorganic compounds with boiling points between 50°C and260°C, excluding pesticides. The term encompasses a verylarge and diverse group of carbon-containing compounds.There are probably several thousand chemicals, syntheticand natural, that can be called VOCs. Of these, over 900have been identified in indoor air, with over 250 recorded atconcentrations higher than 1 ppb.

Recent studies conducted as part of the State ofWashington’s East Campus Plus Program showed that 96percent of the VOCs found in a large office building followingconstruction resulted from the materials used to constructand furnish the building. Contributors included hard surfaceand carpet flooring materials, paints, adhesives andsealants, office furniture, computers, insulations, vinyl wallcoverings, ceiling tile, cabinetry, fireproofing, and textilefurnishings.

With the knowledge accumulated from IEQ studiesthere is a desperate need worldwide to consolidate findingsinto a methodology that demonstrates tangible occupantwell-being and productivity gains from FE expenditure,effort and rating.

Australia is well placed and needs to participate inleadership with establishing internationally benchmarkedprotocols to measure facility and office productivity andwell being gains from our various initiatives andexpectations.

We are a small but sophisticated country, increasinglyreliant on a skilled and productive workforce to compete

globally. Since most of our workforce is employed indoors,facility managers play a critical role in contributing tonational competitiveness. The Facility Management ActionAgenda has been recognised by the Federal Government’sProductivity Commission as a vehicle for this role.

Facility Managers must evaluate efforts internationallyto enhance their national productivity, conduct comparativestudies and contribute to the development ofinternationally benchmarked tools and practises to improvethe health and productivity of our nation.

The FMA Indoor Ecology Special Interest Group isplanning a conference early in 2008 to address theseissues and is calling for interested parties to register theirsupport and participation.

Dr Vyt Garnys has more than 30 years professionalexperience in solving technical problems over a widerange of industries and involving Product/ProcessProblems, Indoor and Outdoor Environmental RiskAssessments, Sustainability and OH&S. In 1986 hecommenced research into IAQ and ran the firstAustralian seminars. His strong focus on IndoorEnvironment Quality and Facility Ecology has evolvedto include its impact on productivity and wellbeing. In1987, Dr Garnys formed his own technicalconsultancy, CETEC Pty Ltd. He is Chairman ofStandards Australia Committee for IAQ Measurementand also chairman of FMA Australia’s Special InterestGroup on Indoor Ecology. Dr Garnys is a NATAsignatory, a NATA Laboratory Registration Assessorand chairs NATA Inorganic Chemical Committee.

1. Seppanen O (1999). Estimated cost of indoor climate in Finnish

buildings. Proceedings of Indoor Air 1999 Vol. 3 pp 13-18.

2. CIBSE (1999). Technical Memorandum 24. Environmental factors

affecting office worker performance. A review of the evidence.

Figure 2: Research activities on various indoor pollutants over time.

ESSENTIAL SAFETY MEASURES

Adopting any new standard is not without its challenges, and the new ‘AS 1851-2005 Maintenance of Fire Protection Systems and Equipment’ Standard is noexception. Derek Hendry from the Hendry Group took the opportunity to commenton a number of issues raised by clients and contractors alike on the new Standard.

Derek Hendry

While it is fair to say that there is little doubt that the new AS1851Standard is a significant improvement on earlier regulatoryrequirements, its implementation has not been without lems.

In the first instance, Maintenance Standards are not referenced in theBuilding Code of Australia. All maintenance regulations are actuallydeveloped and administered by each State and Territory, and at this point intime, seven State and Territory governments have yet to accept thisStandard being incorporated in their State and Territory regulations.

The one exception is Queensland, due to their automatic acceptance of srequirements once it is published.

A facility and property manager may therefore decide to adopt the AS1851 Standard for their facilities portfolio and they would be legally entitledto do so, but in fact at the present time apart from Queensland, there is noactual legal obligation to do so.

Before considering whether to adopt the Standard in their ownmaintenance regulations as a mandatory provision for all new installations,some States and Territories have indicated they wish to develop aRegulatory Impact Statement, (RIS) on AS 1851 - 2005. A typical RIS aims toanswer critical concerns and also sks questions such as ‘do we have aproblem?’, ‘does this fix the problem?’ and, ‘what are the likely impacts interms of costs and benefits?’.

In terms of likely impacts, even if a new revised Standard were to beadopted by all States and Territories immediately, its adoption would notapply retrospectively and would only apply to new buildings, not existingones. Your current Standard therefore, would be allowed to be used to takeyour building into the future. In this way the cost impact of the changeswould be kept to a minimum.

Following are some examples highlighting the areas of concern forAS1851 – 2005 raised by our clients and contractors across Australia:

The frequency change from weekly to monthly for both sprinklers andpumps infer less work involved, but the change actually requires additionalequipment and systems to be in place. These additions are not arequirement of the current installation standard, and you could therefore

Authorities yet to acceptAS1851 standard




add a brand new installation to the current installationstandard, but you will not be able to change to monthlytesting without increased capital and ongoing (valvemonitoring costs for sprinklers for example) expense. Thecost justification to move to monthly testing is seriouslydiminished by these extra requirements and totalmaintenance costs may not stack up, depending on theservice cost differences.

The transition to the new standard is not really clearwith regard to anniversary dates for each of thefrequencies. Some of the questions posed are “Do theystart again?”, “Do we take the previous test date as thebasis for an anniversary?”, “How do we change over to thenew system?”.

Passive items such as fire stairs, and fire rated wallsand floors are now included in this Standard, whereaspreviously these have resided in the State and TerritoryRegulations. As a consequence, the passive section israther lengthy and onerous. Requirements such as thelabelling of penetrations cannot realistically be expected tobe done, since logically, it is unfeasible to prepare a plan asdescribed, without lifting every ceiling tile in a suspendedgrid system or carpet on a floor.

There needs to be some mechanism to keep track ofthe anniversary dates as well as the frequencies above 3yearly as they are always set back to zero time when a newcontractor is appointed.

The new AS 1851-2005 is not a Standard that emanatedout of a ground swell of requests from the various buildingcontrol state authorities, and as such the current versionhas some way to go to win over a number of States andTerritories.

From a safety compliance perspective however, thenew Standard definitely represents a positive shift inproviding the correct level of maintenance required toensure the provision of functional fire services. It also goessome way to ensuring the contractor delivers on themaintenance requirements neededre they may have failedto deliver in the past.

The new Standard can be implemented for high risksites such as a dangerous goods storage depot, whichwould benefit in meeting “new maintenance standards” tosupplement ongoing licensing responsibilities. Similarly, theadoption of the Standard would also benefit organisationswith aggressive business risk reduction and continuitystrategies, since the increased maintenance costs wouldfar outweigh the potential losses incurred through less thanoptimal fire service maintenance practices

The bottom line for the facility manager will only beknown once a cost benefit analysis has been done andcapital expenditure (CAPEX) and/or operational expenditure(OPEX) implementation strategies are measured againstalready established benefits and risks.

About the Hendry GroupDerek Hendry is the Managing Director of the HendryGroup of consultancy companies, including EssentialProperty Services. Derek pioneered the ‘privatecertification’ system of building approvals inAustralia , and his nationally based consultancyoffices assist clients in all facets of building controland essential safety measure audits. The HendryGroup publish an e-newsletter entitled ‘essentialmatters’, available online at www.emau.com.au.

Facility ManagementConsulting Services

Providing constructive solutions

Sydney02 9415 1600

Melbourne03 9867 3011

Brisbane07 3210 1366

Perth08 9481 8991

Adelaide08 8231 3330

Gold Coast07 5592 5605

Procurement

Strategies

Tender/Contract

Documentation

Benchmarking &

Asset Valuations

Service Level

Agreements & KPIs

For further information contact

[email protected]

www.curriebrown.com



Regulatory initiativesfor more universallyusable buildings By Rod Hunter

Three regulatory initiatives for achieving more universally usable facilities inAustralia are in progress: reconciliation of the Disability Discrimination Act (DDA)with the Building Code of Australia (BCA); provisions for a proportion of housing tobe suitable for occupants with disabilities; and provision for emergency egress foroccupants with disabilities.

DDA-BCA reconciliationThe proposed and much vaunted DDA-BCA

reconciliation will have a multi-layered structure.There will be an Access to Premises Standard(Premises Standard) under the DDA (keepingcompany with the existing DDA Standards onAccessible Public Transport and Education). ThePremises Standard will give authority to an AccessCode to Buildings (Access Code), and the AccessCode will be replicated in the BCA.

There is nothing very contentious about thePremises Standard. It is the extent to which the draftAccess Code mandates more universally usablefacilities than presently under the BCA that iscontentious for the building and property industry.

As with the BCA currently, the Access Code willinvoke technical provisions of various Standards ofStandards Australia. The paramount of these will beAS1428 Part 1: Design for Access and Mobility. Incontribution to the DDA-BCA reconciliation, AS1428Part 1 (as well as other Parts) has been revised toachieve more universally usable facilities thanpresently, and it is the extent of this within the draftrevision, that industry also finds contentious.

The arduous reconciliation process (formallyinitiated in 2000 when the Attorney General askedthe Australian Building Codes Board (ABCB) to effect

the reconciliation) has involved a sizable cross-section of national stakeholders and has beenoverseen by the broadly representative BuildingsAccess Policy Committee (BAPC) established by theABCB.

The draft Premises Standard, draft Access Codeand draft revision of AS1428.1 were released forpublic comment in January 2004, closely followedby a draft Regulatory Impact Statement detailing thesocio-economic costs and benefits of the DDA-BCAproposal. The outcome of all of this now resides withFederal Cabinet for approval.

Cabinet is grappling with the proposals and lastyear referred some matters through the ABCB backto the BAPC for further comment. Mark Davis in theFinancial Review, 6 July last year, identified apossible relaxation of accessibility provisions in theproposed Access Code by the ABCB followingconcerns from government ministers. The final formand the date of implementation are not publiclyknown and reliable indications are elusive. SenatorCarr, for example, received only an insubstantialanswer from the Federal Government late last yearin response to his Question on Notice as to the hold-up on the Premises Standard. In an article in theHerald Sun on 13 February this year, Kim Lovegrove,a building and property law specialist, stated that

implementation would happen in May this year.However, the revisions to the BCA that will bereleased in May have already been announced andthey do not include the integration of the AccessCode.

Given that the BCA is re-issued, whenever thereare revisions to it, in May each year, at the earliest itis going to be another year before the BCA with theAccess Code integrated in it, is available. However, itmight be possible, once Cabinet approval has beenachieved, for the Premises Standard and the AccessCode to be released before the integration of theAccess Code within the BCA.

Many access consultants rely upon the GuideNotes on Access to Premises produced by theHuman Rights and Equal Opportunity Commission,the body responsible for administering the DDA, andthe draft revision of AS1428 Part 1 as indicators ofsatisfaction of the DDA and clients’ avoidance ofcomplaint under it, not upon the current BCA andAS1428 Part 1. In light of the probably lengthy delayof a re-issued BCA with the integrated Access Code,it would be extremely useful if the Access Code andrevised AS1428 Part 1could be released ahead of it.

Satisfying the DDA has been mandatory since1993 and building designers, certifiers and approvalauthorities have been put on notice by HREOC about

Rod Hunter



their responsibilities and possible liability if theypay insufficient regard to it. Many municipalcouncils now stipulate within their urban planningapproval conditions that due regard be given to theDDA. The DDA is a complaints-based instrument anddoes not contain technical prescriptions forsatisfaction of it or, in other words, deemed-to-satisfy detail. It is this technical detail that the DDA-BCA reconciliation will supply.

Promulgation of the Premises Standard andAccess Code, the integration of the Code within theBCA, and publication of the revised AS1428 Part 1will not remove opportunity of complaint under theDDA (because the DDA will continue generally tohave primacy over other legislation and subsidiaryregulation such as the BCA). However, submissionsby or on behalf of a complainant to HREOC and theFederal Court on matters covered by the deemed-to-satisfy prescriptions of the Access Code would needto be sufficiently compelling for any considerationby HREOC or for the Court to over-rule therequirements of the Access Code.

Accessible HousingFor many years there have been calls from the

community for housing to be much more visitableand adaptable. That is, that dwellings have groundfloors that are easily and safely entered and usedand with suitable sanitary facilities, and that they beconstructed so as to facilitate later adaptation forgreater accessibility (such as door widening andinstallation of grab rails at showers and toilets). It isargued that whilst this will add slightly to the cost ofthe housing stock, in the long term this will be offsetby savings from avoiding costly housing adaptationsor relocations and the social benefits of moreaccessible housing.

In Victoria the calls culminated in theestablishment in October 2005 of a Stategovernment task force on Accessible Housing. Thereport was submitted to the Planning Minister at the

time, Rob Hulls in May 2006. Separately to this, andno doubt one of the reasons for the establishment ofthe Task Force, several municipalities such as theCities of Melbourne, Moonee Valley and Yarradeveloped planning amendments requiring moreaccessible housing and submitted them to thePlanning Minister for his ratification. The cities arestill waiting for that ratification, with the City ofDarebin also waiting for the outcomes of thesubmissions. Similar initiatives have been adoptedby municipalities in other states, such theDevelopment Control Plan on affordable andadaptable housing instituted by the City of Gosfordin New South Wales.

Interest in accessible housing has also beendemonstrated at Federal Government level. Forexample, Senators Carr and McLucas in FederalParliament asked as Questions on Notice, what theCommonwealth was doing in relation to accessiblehousing and the Victorian Government’s AccessibleHousing Task Force report. However, they wereadvised that it was a matter for the Sates and not forthe Commonwealth.

The Victorian State Government’s response todate has been to give a pre-election promise lastyear to undertake and establish an AccessibleHousing Program that would be educative,promotional and include a ‘suite of standard “lowcost/no cost” measures’ for inclusion bymunicipalities in their planning amendments. Themeasures apply only to the ground floor of newmedium density developments and one out of fiveunits in new high density apartment blocks – wellshort of the range of application sought bycommunity groups and municipalities.

It is interesting to speculate on what effectaction under the DDA or similar State legislation(with respect to the unavailability of more-accessible housing) would have on the responses ofindustry and State and Federal Governments tomore accessible housing.

As the DDA/BCA reconciliation process hasdemonstrated, adoption of statutory provisions formore-universally-usable housing is going to be alengthy process.

Emergency Egress Provision for emergency egress from buildings

and facilities has been of long-standing interest topeople with disabilities - brought into dramatic focuswith the World Trade Centre disaster.

The two most significant building provisionsthat have been or are being considered in Australiaare fire-protected evacuation waiting areas and theuse of lifts.

The BCA alludes generally to egressibility ofbuildings for people with disabilities but has nodeemed-to-satisfy provisions. To address this, theABCB has instituted a three-stage program andestablished a steering committee to develop suchprovisions. As noted in the ABCB’s Summer 2007edition of ‘Australian Building Regulation’, thesolutions will no doubt be a combination of buildingsand facilities design on the one hand, and occupantmanagement on the other.

The dual solution is reflected in the researchcarried out by the US National Institute of Standardsand Technology, and its collaboration with the USelevator and fire and mechanical servicesindustries, and in the submission in April 2005 ofthe United States National Council on Disability’sreport to the US President on inclusion of peoplewith disabilities in emergency planning.

The dual approach is also reflected in thecurrent draft of British Standard BS9999 ‘Code ofpractice for fire safety in the design, constructionand use of buildings’. It addresses emergencyresponse management, and building egressibility(as well as accessibility for emergency responseservices).

In Australia, emergency management, includingwith respect to people with disabilities is covered inthe newly revised and soon to be releasedAustralian Standard ‘Planning for Emergencies’.Regulatory provisions in Australia for egressibilityand emergency management with respect to peoplewith disabilities, however, could be several yearsaway.

About Rod HunterRod Hunter is Principal of Hunarch Consulting,a research and design firm specialising inhuman factors and the built environment andrelated regulatory compliance. Hunarch Consulting has extensive experiencerelated to accessibility for people withdisabilities. The firm has conducted majoraudits and provided detailed advice to a broadrange of industry, education and governmentclients and has provided research forgovernment departments, including for theAustralian Building Codes Board. Rod hasparticipated on the AS1428 draftingcommittee and is author of the book ‘MoreAccessible Housing for Independent Living’, acomprehensive guide on the design ofaccessible housing design.



The case for documentedevidence of complianceIt is generally thought that the new Standard for Fire Protection, AS1851, is asizable step forward in ensuring the provision of fire safety measures. But whatdoes it actually mean for facility managers and contractors charged with ensuringregulatory compliance? Max Winter asked an industry expert who should know –Glenn Talbot from Verified.

Facility Perspectives: Can you tell me about yourservice, and the sort of issues you have found withcompliance testing and maintenance requirements in thefield?

GT: Verified has been in operation for 5 years, with30,000 sites on our database and millions of client records.Annually we send over 30,000 reports to facility managersand building owners. It is alarming to see how many tests arenot being completed, tests one could assume, that have beenpaid for. Unless the facility manager has a sophisticated toollike Verified, it would be near impossible to confirm whattests have been completed, or more importantly, notcompleted.

For example, we generated a compliance report for one ofour clients, based on 700 sprinkler systems they hadcontracted out for a 3 year period. The report showed thatonly 60% of the valve overhauls had been completed, yet100% had been paid for. There are a number of differenttesting frequencies for a Fire Systems, from weekly to 30yearly. We tend to find that the high frequencies such asweekly or monthly, have a relatively high completion rate.They are done by the same person week-in / week-out (oreach month). When it comes to the lower frequencies, itgenerally takes a higher skill set, the contractor may need toarrange parts, or the job needs to be scheduled. Generallythese frequencies are overlooked or neglected. Lowerfrequencies also carry most of the cost within a maintenancecontract.

Insurance companies are particularly anxious to ensurethat all tests, including the lower frequencies, are completedcorrectly. These major tests are the most rigorous and willshow defects and system failures that the lower frequencieswill not. You can test a sprinkler system every week and it isnot until the annual test is done that it is identified thesystem would never have worked correctly in fire situation.

Once the test is performed and relevant paperwork hasbeen completed, you have documented evidence ofcompliance. If you do not have evidence of compliance as perthe relevant standard or regulation, YOU ARE IN TROUBLE.Whether it leads to criminal or civil litigation, you need to beable to produce the documented evidence that you haveperformed the test.

On a number of occasions Verified records have beenused as evidence, to shift some of the responsibility when aloss has occurred. One of our clients had a major loss when asprinkler system failed to work properly. From the Verifiedrecords it was found that the contractor failed to test thesystem correctly. As such some of the liability and cost wasborne by the contractor’s insurance company. Others haveused Verified records to enforce KPI’s and/or apply penaltieswhen the service standards not been met as per the contract.

It is important for both the contractor and client to knowthat now there is a tool available to accurately measure acontractor’s performance. We are able to notify our clients ofany test that has been missed or defects found. The clientthen has the ability to measure what is being delivered.

Coles Group have now included in their Fire SafetyMeasures contracts that the service delivery will bemeasured. Should something be missed, it is the contractor’sresponsibility to ensure delivery or they will not get paid. Inaddition, Coles Group stipulates that the contractor mustprovide the documentation to Verified – as this is their onlysurety that the job has been done.

Understanding that facilities managers are time poor, wehave automated the process of generating reports andstatistics, providing them in either Excel or PDF format. At thepush of a button periodic reports can be generatedautomatically. The report(s) query is set up once andforgotten about, yet received monthly, or a frequency definedby the client. The report(s) can be configured with numerous

Glenn Talbot

Save Money We have easy solutions

for complex issues.

Complex Property GroupProviding Consistent Reliabilitycomplexproperty.com.auLevel 28, 303 Collins St, Melbourne VIC 3000Tel: 03 9329 2722 Fax: 03 9328 2088G. Domenic Bergamin General ManagerMobile: 0438 00 00 38 Email: [email protected]

“Finally someone we can rely on for Compliance solutions that are cost effective”

- Mr. Simon Chamaa, Strata Plan

Achieving Property Compliance is our business

Easy Green Building initiatives

Simplifying Essential Safety Measures requirements

Building Engineering Qualified

We offer one solution for Maintenance & Compliance

Operational Risk Mitigation

Specialised provider Cost Effective Reliable No obligation meetings

Visit www.propertycompliance.com.au for a complimentary Facility Health Check

Call now to see how easy it is

3000

ager

com.au@complexproperty.

Audits – Carbon Reduction / Sick Building Syndrome / DDA / BCA

Reports – Regulatory Annual Form 10 for Owners & Agents

Inspections – Construction Engineering / Project Defects

Assessments – AS1851 Compliance / Operational Risk

When it comes to Compliance – there isn’t anything we can’t do.



query items such as tracking contractor jobs, type of workscompleted and/or geographical areas the work wasperformed in. The report is represented graphically and iscolor coded so key items are easily recognized. This makesfor easier analysis and follow up of key issues or defects.

Recently we have provided report access to contractors,inviting them to understand how they are being measured,and to assist them in delivering their contracted service. Theyare now able to see what their clients are being notified of(such as missed tests or defects). It has proven to be apowerful tool for the contractor, with the results being anincrease in the service level for their clients.

Initially our system was not seen favourably bycontractors, as they were being held accountable for theiractions. Over time, and with education, we have found anuptake from major contractors because they now see that thesystem can work for them too. They are able to monitor andmanage their employees and sub-contractors, be pro-activein rectifying defects, ensure tests don’t get missed, andgenerally provide a better service to their clients.

Facility Perspectives: What has been the reaction to thenew Standard AS1851 in the field?

GT: The changes that come about due to theimplementation of Australian Standard AS1851-2005 make itfar more onerous for the building owner and facility managerto ensure fire safety maintenance gets delivered correctly.There are significant changes to the structure, regime,control, reporting, and documentation requirements of thenew standard. These changes impact on the role of the facilitymanager and they must have good systems in place tomeasure and control the work of the specialist providers inthis area. Some changes include; new test frequencies withspecific tolerances for each period, anniversary dates forfrequencies are now based on the original test date for thatfrequency (dates that were in the past), physical records arerequired on site, surveys of back of house safety systemsneed to be carried out, and condition reports (noting missedtests and outstanding defects) need to be generatedannually, to name a few.

AS1851-2005 definitely demands a more rigorous testingregime for your critical safety systems and should beembraced because of it. We must be aware of the impact ithas on the workload, the costs to deliver these services, andthe resultant reporting and performance expectation. Tocompare the workload I need only to compare the Verifiedtest sheet from the old to the new standard. The old singletest sheet covered frequencies from weekly to six yearly andcontained 30 test questions. The new Standard requires us tohave three separate test sheets covering the samefrequencies, with a total of 197 test questions. That is asignificant increase in the test regime and does not includeall the additional recordings for pressure, temperatures,flows, and so forth.

Although the new Standards are onerous, Verified hasadapted their systems to ensure the reporting and recordingprocess is automated. The facility manager will know ifsomething has been missed, that the frequencies have beencompleted within tolerance, that the service provider hascompleted the test as required, and have the ability toproduce a condition report at the click of a button and haveall the original records to back it up with. All this will happenwithout any direct day to day involvement from the facilitymanager.

Facility Perspectives: Are there any other applicationsthe service is used for?

GT: It seems every time we present or implement the

product our clients come up with other items that they havetrouble controlling. Verified has invested significantly in backend systems recently to allow the rapid development andimplementation of additional products that use the sameproven process. Now it really is a case of Verified becoming atechnology process company rather than a company thatprovides a specific product in the fire safety arena. There arealready many examples of new product initiatives.

We have off the shelf products for electrical testing,water treatment, general maintenance, RCD testing, testingand tagging of leads, mechanical surveys, and a few morecurrently in development.

Some specific client forms include: u Coles Express (700 sites) tracking delivery of general

service including refrigeration, LPG testing, auto doors,carwash etc.

u NSW Department of Commerce for security, MATV, cold &hot water systems, telephone cabling, and other generalservices.

u Department of Housing – smoke alarm formsu Coles Group – Store Responsibilities form measuring

some safety and OH&S monthly requirements.There are endless uses for our product, with interest

being shown in the food handling & cleaning industries, largeproperty portfolio surveys, scientific research data collectionand OH & S reporting.

As clients change their contractor from time to time,historic records are usually lost when the contract ends.From a risk management point of view it can be quiteexposing to lose compliance data, which often forces clientsto remain locked into the one contractor. Verified hands thatpower back to the client, as the data is the property of theclient, not the contractor and not Verified. It makes nodifference if the client changes contractors on an annualbasis, as the compliance data is always in the hands of theclient.

Some facility managers can be wary of a system that isenacted externally, usually because they have a considerableinvestment in their own systems/software. Often they don’trealize that Verified collects the original document from thefield. The document is then scanned and made availableelectronically via the internet for future use, should it ever beneeded. These documents can be integrated with their ownsystems quite easily, with clients using Verified inconjunction with their own ERP system to close the routinejob loop automatically.

There is no other system out there that actually grabsthe information from the field, and secures the originaldocument for future should it ever be needed. VERIFIED DOES.

About Glenn Talbot Glenn Talbot is the founder and Managing Director ofVerified, a company that provides state of the artmanagement processes for the control of fireprotection and building maintenance. Glenn holds anAssociate Diploma in Applied Science (Fire Technology)and has been in the fire protection industry for overtwenty years. His roles have included State andGeneral Manager of some of the industries largestservice providers.He has been an active Fire Protection Association(FPA) State committee member of the FPIA/FPAA forover 15 years, holding the position of Vice Chairman ofthe Victorian division from 2003 – 2006. In 2006 hewas elected to the board of the FPA. He is a currentmember of the FMA.

PROPERTY FOCUS

Lease buy-out options –‘win-win’ for facilitymanagers and owners!

The need for business to respond rapidlyto changing conditions in a competitive

environment has seen a focus onstructuring flexibility into portfolios, in

many cases resulting in a strategy ofnegotiating shorter lease terms.

However, in more stable industrysectors including government users

tend to remain in their facilities forlonger than their initial lease term.

Portfolio usage, if analysed, showsthat many leases in these sectors

have options exercised.

Short Term Lease PremiumsShorter term leases with options

provide flexibility for organisationssince they are not locked into sites forlong-lease terms, but the benefits areat a cost. Since rentals are inverselycorrelated to the term of the lease, thisusually means rental levels forshorter leases are at a premium tolong term leases - certainly in termsof incentives. Organisations regularlyexercising lease options across aportfolio are therefore paying apremium for the short term leaseprofile but are often not makinguse of the inherent flexibility.

Despite having thisknowledge, many facility users -particularly in more volatileindustry sectors - persist with thesepractises as the uncertain future means they stillwant the ability to relocate to smaller or larger premises iftheir operations so dictate.

So, can a rental advantage be achieved by early re-negotiations across a portfolio that has a short term leaseexpiry profile? Firstly, it is important to objectively assessthe term that the facilities are likely to still be required –unrelated to the unexpired terms of the leases. With a



PROPERTY FOCUS

realistic assessment of the real need for flexibility, thechallenge is to determine the points in time when theflexibility options need to be structured and the price thatshould be paid for these rights.

Lease Buy-out OptionsWhat are Lease Buy-out Options? These are

arrangements allowing tenants to buy-out of their futurelease obligations at set intervals and prices. Generallyowners are reluctant to include these options in newleases, but when linked to re-negotiating existing leasesand extending the term, these can be structured to providea platform to terminate the leases and achieve rentaladvantages. These terminations are usually atpredetermined intervals and incur penalty payments by thetenant if exercised. This concept is a commonly used andwidely accepted practice in the finance industry.

To be attractive to a tenant however, these buy-outoptions should also provide significant savings by virtue oflower rental traded-off, in return for the longer lease terms,and also potentially include a significant up-grade to thefacility to support the extended life of the proposedoccupancy.

In a financial analysis, these provisions should be costneutral for the tenant, even taking into account the buy-outcosts. Structured correctly, these options can have asignificant advantage in providing flexibility at a pricepayable when exercised, and also provide significant on-going rental savings.

Advantages for the ownerWhy would an owner be willing to agree to Lease Buy-

out Options? Consider the driving forces behind ownerprofiles. Obviously all owners want to retain their premiertenants – sourcing tenants and finalising new leaseagreements are major costs and risks. It makes sense toretain good tenants if this can be achieved by balancing therisks and financial returns.

Owners will want to ensure that the buy-out dates donot create worse lease tenure profiles than their currentsituation. The lease buy-out intervals can then bestructured to provide flexibility, with payments made only ifexercised. This is balanced against the longer lease tenureoffered which will be attractive to the owner.

The fund manager owners operating in a transparentinvestment environment – and being subject to on-goingmarket commentary by financial analysts – are well awareof the scrutiny attached to major lease expiry dates. Listedproperty trusts or even large syndicates, place a lot ofemphasis on their weighted average lease expiry profiles.With a significant lease in a portfolio due for renewal,analysts will be reviewing and commenting on the impacton performance if not renewed.

This is strong motivation for the fund manager to agreeto a lease extension, even if attached to buy-out optionsand lower rental levels. The potential positive impact of thelease renewal on the weighted average lease profile, andconsequently the portfolio rating, can provide a big boost infund value.

Syndicate owners, approaching the fund wind-up datesand with valuations pending, also need certainty of leasetenure, even if these are at reduced rental rates, and this issimilar to other portfolios when asset re-valuations arepending.

In determining capitalisation rates, valuers will beseeking certainty of future tenure for all major tenants with

impending lease expiries. Although the impact of buy-outoptions on revaluations are often a challenge for valuers,provided the penalty structure has been priced correctly,this should not result in lower asset values.

Obviously for ‘mom-and-pop’ owners with a single orfew properties in their portfolios – there is good reason tobe open to lease extension negotiations. A large vacancy inthese portfolios will impact cash flows, and viewednegatively by bank managers.

Win-win OutcomesFor example, consider the application of a lease buy-out

option on an existing 10,000 square metre lease, a yearfrom expiry and with an existing five-year renewal optionwritten into the lease. Based on the term and rentalconditions, the option is unlikely to be exercised. The tenantwants lower rental and flexibility to terminate iforganisational changes so dictate. The owner does not wantto go to market seeking a new tenant. This would be theideal situation for renegotiations of the lease to includefuture buy-out lease options.

With financial modelling, the buy-out price for eachpotential buy-out event over the new lease term can bedetermined. The tenant now has flexibility and pre-determined buy-out costs, with no re-location andtransaction costs and may achieve a lower rental cost andpossibly an upgrade to the building. In addition, withimproved relationships, there should be improvedcommitment to service levels.

The owner has the immediate benefit of a new longlease albeit potentially at a lower rental level, with no leasedown-time, marketing costs, and potentially no incentivecosts. Even though buy-out options now exist these arelinked to penalty payments from the tenant and from anoccupancy perspective, the owner is in a stronger positionthan before.

For tenants and owners, these structures represent‘win-win’ outcomes. This strategy can provide exceptionaloutcomes for tenants who are not compelled to relocate,meeting their two primary drivers across the portfolio -lower lease rentals and flexibility with buy-out options. Forowners, improved security of tenure from a major tenantprovides improved weighted average lease expiry profiles,leading to portfolio re-ratings and improved fundvaluations.

About the AuthorRodney Timm, DirectorProperty Beyond (Pty) Limited

Property Beyond is an independent portfoliomanagement advisory group focussing primarily onthe users’ needs in the property industry. Thisincludes providing advice to corporate andgovernment occupiers on the use, occupation anddevelopment of property. With a businessmanagement focussed approach, Property Beyondensures the alignment of accommodation portfolioswith business strategies. Specific areas of adviceinclude transaction support, location, flexibility, totalcost of occupancy, security of tenure and capitalgeneration.

Rodney can be contact on:Phone (02) 9221 0660, Mobile 0425 211 967 orE-mail [email protected]


HUMAN CAPITAL

Facilities management has always encompassed a broad spectrum of industrysectors and an even greater variety of roles and responsibilities. FacilityPerspectives Melanie Drummond took the opportunity to speak to SallyHenderson, Facilities Project Manager for Travelport about her duties, and whatthey entailed.

15Sally Henderson never shies away from a challenge.

Starting out nearly five years ago as a Facilities Co-ordinator, Sally is now Facilities Project Manager forTravelport – a privately owned company that

services three major business divisions in the internationaltravel sector.

At a corporate level Sally assists each business unit inthe management of its various real estate facilities in Asia-Pacific. Although the Travelport parent company is based inthe United States, Sally reports to the company’sInternational Markets, Vice President CRE, based in Londonand as such, spends a large part of her week ‘going global’from her Sydney office.

“Project management of regional changes ischallenging as we have quite diverse IT infrastructures, onemanaged globally out of the U.K, another from the U.S.A.Conference call programming means finding a suitable timefor the local site – staff and contractors, IT people here inSydney along with myself, and the infrastructure team inthe UK or USA.”

Sally keeps on top of her weekly schedule byemploying her strong communication skills. “In an average

working week I’ll deal with landlords, lawyers, seniormanagers, finance departments and corporate reporting.Being a manager in a matrix organisation of this size meansmany processes to follow and people to communicate withglobally. Time is also spent keeping on top of project plans,knowing where things are up to and following up to ensuredeliverables are received when they’re needed.”

Another part of Sally’s success is her ability to forgeand maintain strong working relationships. “A lot of itcomes down to networking and knowing who is likely tohave the information you need, and having various meansto communicate with them. The length of time I’ve spent inthe organisation has helped me develop good interpersonalrelationships with most of the people I’m assisting here inAsia-Pacific. The company has changed ownership andstructure repeatedly since 2001, requiring regular andrapid adjustment by its staff and flexibility in its realestate.”

Her current challenge is to project manage two projectsremotely in Asia, one a relocation and the other a newoffice.

“The Singapore re-location will be the big challenge. I’ve

Sally Henderson

minutes of facilitymanagement fame


HUMAN CAPITAL

dealt with relocations before as the Facilities Manager so Icould be very hands-on,now I’m delegating a lot more. Ineed to monitor and track other peoples’ performances, andlearn to let go and manage effectively to ensure delivery ofthe fast tracked project on time and within budget.”

One thing Sally is already managing successfully is herability to multi-task, something she says is hugelyimportant in a role that is constantly changing.

“There’s a constant amount of change which can be adouble-edged sword – the challenges are great and

sometimes stressful. However Iwelcome the opportunity tolearn and experience corporatereal estate management in upto ten countries across Asia isinvaluable.”

Before stepping into herrole as Facilities ProjectManager in July of last year,Sally spent two and a halfyears working as Travelport’sFacilities Manager, Australia &New Zealand.

“From starting out inhospitality my career evolvedinto working on new hoteldevelopments that introducedme to the design andconstruction of the builtenvironment. Following a

downturn in the economy, my skills and knowledge of hoteloperations changed focus to the documentation of theintellectual property, policy and systems for the sameinternational hotel chain. In undertaking research for a newcareer direction the fledgling profession of FacilitiesManagement presented itself to me. I decided it offered allthe things I wished to combine in a vocation – it’s handson, involved with people and demands excellent servicedelivery.”

Despite the large number of people undertaking thework in the area of facilities management, she says it is stillone of the lesser known professions of the workforce.

“People who come through engineering and buildingservices are much more aware of and identify facilitiesmanagement as a career direction. There are still a lot ofpeople doing and managing these tasks but they’reprobably working under a different title, such as OfficeManager or Administration Manager, oblivious to theprofession.”

Her hope for the Facilities Management industry is thatbecome a better-known and more highly-valued profession.“I believe some companies underestimate the value aprofessional facilities manager can bring to an organisationto help it achieve its goals. They can free up a company’stime, staff and resources to focus on core businessobjectives. The core focus of a corporate Facilities Manageris to have all support services running smoothly.Seamlessly meeting the needs and demands of acompany’s internal customers in full support of theirindividual roles within the organisation is the goal.”

PROCUREMENT MANAGER/FACILITIES PLANNERRGC Consulting Pty Ltd requires a full-time Procurement Manager and Facilities Planner to join a small, energetic team inthe Brisbane Head Office based at Springwood, Qld.The company is involved in the Interiors Planning, Procurement and Fit Out Consultancy of large scale commercialhospitality and institutional projects, Australia wide and into S.E. Asia. All projects are one off capital expenditures and do not entail recurrent procurement. Current projects are public, privateand PPP funded covering Defence, State Public Works, federal infrastructure and private developments. Projects are typicallygreater than $100 Million in overall construction budgets.The responsibilities in this role include:• Overseeing projects from developed design stage through to installation• Maintaining project time schedules• Procurement planning• Specification documentation development• Ensuring projects meet budget requirements• Liaising with management and clients• Participating in multiple projects, Australia wide

To be successful in this role you will ideally have the following:• Relevant Tertiary Qualification.• Broad experience in the client brief, specification, documentation, procurement and materials management and/or

contract management and/or facilities management of Furniture Fittings & Equipment (FF&E).• Sound computer experience with MS Word, Excel V 2003 and intermediate to advanced skills in MS Access are

essential.• Member of the FMA or CIPSA.

The permanent position will suit a self starter with a positive outlook. An immediate start is available. Salary package to$70,000 pa.Fax your resume to:The Director, RGC CONSULTING PTY LTDFax (07) 3208 1212 or email to: [email protected]

“...In undertaking research fora new career direction thefledgling profession ofFacilities Managementpresented itself to me. Idecided it offered all thethings I wished to combine ina vocation – it’s hands on,involved with people anddemands excellent servicedelivery.”

The Great Candidate Drought – how long will it last?It is well known around the world that there is a fierce fight for talent and the facilities management profession is no exception. Hays Facilities Management is a specialist recruitment team that understands your issues. So when you work with us – whether as a candidate seeking a new role or as a client with a position to fill - you get priority access to worldwide opportunities, trends and data including salary movements and talent hotspots. Contact us to find out the latest forecast.

Hays Facilities Management’s specialist recruitment team in Australia operates from centrally located offices in Sydney, Brisbane, Melbourne, Perth, Adelaide, Hobart and Canberra, as well as 20 other countries around the world.

Hays Facilities Management has been servicing the Melbourne market for more than a decade and with a dedicated team of professionals we take an honest and efficient approach to establishing your best course of action and offer advice on taking the next strategic step.

We specialise in:

• Facilities Managers

• Facilities Coordinators

• Maintenance Managers

• Building Managers

• Project Managers

• Service Managers

• Soft Service Managers

• Soft Service Managers

• Maintenance Electricians

• Refrigeration Mechanics

• Security Technicians

• Fire Technicians

Hays Facilities Management locations:

Adelaide 08 8212 5242 [email protected]

Brisbane 07 3243 3066 [email protected]

Canberra 02 6230 5142 [email protected]

Hobart 03 6234 9554 [email protected]

Perth 08 9486 9553 [email protected]

Melbourne 03 8616 8400 [email protected]

Sydney 02 8226 9600 [email protected]

AdelaidePerth

Brisbane

Sydney

Canberra

Melbourne

Hobart

Darwin

DRY

DRY

DRY

DRY

DRY

DRY

DRY

Specilist Recruitment hays.com.au

Documents

Facility Perspectives v1#1 March 2007