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The Journal of the Association of Cost Engineers
Project ControlPROFESSIONALProject ControlPROFESSIONAL
May 2017Vol. 55 No 3
� The White Tree tower, Montpellier� Semantics in total cost management
� Work while learning with an apprenticeship� Project controls – continuous improvement
� Cost Engineering Tube Map – pull-out
� The White Tree tower, Montpellier� Semantics in total cost management
� Work while learning with an apprenticeship� Project controls – continuous improvement
� Cost Engineering Tube Map – pull-out
Project Control Professional May 2017 3
contents
Volume 55 No 3May 2017
ISSN: 1750-371X
Project Control Professional is publishedby The Association of Cost Engineers
EditorClive WellingsTel: 01691 829421Email: [email protected]
Assistant EditorVanessa TattersallThe Association of Cost EngineersLea House 5 Middlewich RoadSandbach CW11 1XL
Open: 9.00–4.00 Mon–Fri
Tel: 01270 764798Fax: 01270 766180Email: [email protected]: www.acoste.org.uk
Advertising ManagerDavid Singh7 Priory GardensHamptonMiddlesexTW12 2PZTel: 020 8979 9858Mob: 07939 551929Email: [email protected]
Circulated to all members of the ACostENon-member subscription: £50 (UK)£60 overseas (airmail) Back numbers: £6 each
© The Association of Cost EngineersAll rights reserved
While every effort is made to ensure the accuracy and reliability of the material published in Project Control Professional, neither the Association, nor their agents can accept any responsibility for the veracity of claims made by contributors, manufacturers oradvertisers
Printed in the UK by Buxton Press LimitedPalace RoadBuxtonDerbyshireSK17 6AE
4 President’s message
4 News & events
6 Project controls – continuous improvement (Part 2)by Christiaan des Bouvrie
8 Work while learning with an apprenticeshipRyan Laflin is interviewed by Nigel Hibberd
12 Cover story: The White Tree takes shapeThe White Tree tower is shortly due for completion
13 Book review: The Magnetic Leader
13 Cost Engineering Tube Mapby Dale Shermon
16 Technical paper: Semantics in total cost managementPaper by Gianluca di Castri, presented at the 2016 ICEC Conference in Rio de Janeiro
23 Your route to professional status via ACostE
24 Technical abstracts
25 New members
25 Appointments
26 Diary of events
27 Association Council
27 ICEC news
Front coverThe White Tree, an extraordinary mixed-use tower
in Montpellier, is shortly due for completion. See story on page 12.
Image: www.designrulz.com
4 Project Control Professional May 2017
Dear Colleagues,
In this Spring edition of the journalwe are happy to confirm that thetrials of our chosen system for thecapture and monitoring ofContinuous Professional Development(CPD) are coming to an end, and wewill soon be making the systemavailable to the membership. We arealso pleased to confirm our supportfor the Thought Leadership in CostEngineering conference marking 20years of cost engineering at Cranfield
President’smessage
on 5 July, and encourage our membersto attend.
In this edition we have included atechnical paper that was presented atthe International Cost EngineeringConference in Brazil last October. Thepaper focuses on the definitions of costengineering and project controlsterminology, and how the translation ofthese terms between languages canresult in a different understanding ofthe fundamental principles of ourprofession. It is interesting to note thatthe author bases the difference that wein the UK perceive between costengineering and project managementon the difference between common lawand civil law. Within our community wetend to differentiate between the twobased on depth of knowledge, withproject managers having a broadoverview and the project controlsdisciplines of cost engineering,
news & events
Left to right: Geoff Loader, Thames Water, speaker; Stephen Allen, ACostE SouthernRegion Chairman
Talk on Thames Tideway TunnelThe Southern Region held a technical
meeting at the Royal Over-Seas League
in London on Wednesday 22 March.
The topic of the presentation was ‘The
Thames Tideway Tunnel Project’,
which was given by Geoff Loader,
Head of Stakeholder Engagement for
Thames Water. The slide and video
presentation highlighted the history of
London's current sewerage network
and how the £4.2 billion project will
clean up the Thames, deliver wider
benefits to the community and leave a
lasting legacy for London.
Every year, tens of millions of tonnes
of raw sewage discharge into the tidal
River Thames from London's Victorian
sewers. The 25 km-long interception,
storage and transfer tunnel under the
Thames will collect sewage from the 34
most polluting discharge points along
the river. The Thames Tideway Tunnel
is the largest privately financed infra-
structure project in Europe.
This excellent talk was well attended
by members and guests, despite some
travel disruptions resulting from the
attack on Westminster that afternoon.
estimating , planning, scheduling,commercial and risk managementproviding the specialist expertiseneeded for budget and control.
Finally – and most importantly – acall for help. The Council and Boardare all voluntary positions. We are alearned society representing an eliteprofession – but can only continue todo so if we have sufficient volunteersto man the committees and undertakework on our behalf. We have anumber of vacancies – includingpositions on the EngineeringCommittee – positions vital inmaintaining our Engineering CouncilAffiliation. Please contact the office ifyou have some spare time and arelooking for a new challenge.
Regards,Angela PammenterPresident ACostE
The University of Warwick, and in
particular its School of Engineering, is
part of a new government-funded
partnership of UK Russell Group uni-
versities with the top nine engineering
institutions in China.
The partnership, set up following a
prestigious award funded by the
Department of Business, Energy &
Industrial Strategy (and supported by
the British Council) to build major
collaborations around research and
education, is aimed at building higher
education links and helping to improve
the quality of engineering research and
teaching in China.
The new consortium is the first of its
kind to partner leading UK universities
with the top nine engineering research
UK and China in engineering research partnership
Project Control Professional May 2017 5
news & events
institutions in China. Alongside the
University of Warwick the consortium
includes: Queen’s University Belfast
(which is leading the initiative),
Birmingham, Cardiff University,
Nottingham and University College
London, The group represents one
quarter of the Russell Group of
research-intensive universities in the
UK, with world-leading research and
education excellence in engineering.
During a delegation to Shanghai by
Jo Johnson, MP, in September, the
Department of Business, Energy &
Industrial Strategy agreed to award the
initiative £200,000. The UK group of
universities met formally in the middle
of March and had the first face-to-face
meeting with the Chinese University
Partners on 25 March to discuss the
partnership, during a special workshop
in Beijing.
The funding will see the successful
universities working closely with the
top ten engineering institutions in
China, which will enable the UK
universities to create a critical mass on
a cluster of key engineering areas, such
as energy and advanced manufacturing,
and will help maintain the UK’s global
standing in light of increasing inter-
national competition. It will also allow
Professor Jihong Wang
China to make the transition from a big
manufacturer to a manufacturing in-
dustry superpower.
Professor Jihong Wang (Professor
of Electrical Power & Control Engin-
eering in the University of Warwick’s
School of Engineering) said: ‘The
world is facing global engineering
challenges, not just in my own area of
power generation, control and stor-
age, but across a range of tech-
nologies. We need partnerships such
as these that pull together the best
minds in the UK and Chinese engin-
eering research to take on those
challenges and to make a real, pos-
itive, difference to our daily lives.’
The partners in China include: South-
east University, Beijing Institute of
Technology, Chongqing University,
Dalian University of Technology,
Harbin Institute of Technology, North-
western Polytechnical University,
South China University of Technology,
Tianjin University and Tongji Uni-
versity.
6 Project Control Professional May 2017
Project controls – continuous improvement (Part 3)by Christiaan des Bouvrie*
In the two previous articles, I wrote
about the continuous improvement
cycle of project controls – esti-
mating, planning and executing
projects through a holistic approach.
Integrating these disciplines through
inter-departmental communication and
collaboration and maintaining the link
between the different deliverables, will
ensure quality of control over the
project. However, to complete the cycle
of continuous improvement, learning
through feedback is essential. In this
article we will discuss the concept of
project analysis and benchmarking, and
how they add value to your projects and
organization.
Missing linkKey to successful evaluation of a
project is the ability to compare the
actual result with the estimate with
which you started as well as historical
information. The former thus requires a
link to be set up and maintained bet-
ween cost estimating and project
controls. Often this can be facilitated
by a software system that can auto-
matically keep track of all related cost
items through a breakdown structure of
choice. Such structures include defi-
nitions of all breakdown keys and
support a project controller in finding,
sorting, compiling, summarizing and
managing all project information.
Another key advantage of breakdown
structures is that it can enforce stan-
dardization in projects throughout the
organization. Besides leading to
improved decision making, reducing
ambiguity and more accurate analysis
of the project portfolio, it can serve as a
basis for building a historical cost data-
base for benchmarking purposes. This
database is essential in order to im-
prove future estimates, which can be
regarded as the second missing link.
MetricsMetrics and ratios provide a powerful
way of measuring the performance and
health of your project, enabling object-
ive benchmarking. Metrics can be
categorized according to seven criteria:
safety, time, cost, resources, scope,
quality, and actions. Examples of
metrics are the average waiting time,
number of defects per thousand of
produced items or more generic ones
like SPI and CPI. A wide range of
metrics could be defined for every
project, depending on its nature and
circumstances. The basic process to
follow for each of these metrics is to
first establish critical processes and
requirements. Which aspects of the
project are key to its success? Next, you
need to identify specific, quantifiable
outputs of work which can be
objectively measured and compared.
Finally, establishing targets either based
on historic projects or project specific
goals, results in the ability to assess how
(part of) a project is performing.
Metrics should encourage improve-
ment, effectiveness and appropriate
levels of project control, and help you
to spot possible risks and productivity
losses before they happen. Compare
metrics against an expected baseline
that is either according to the planned
progress or the industry standard. This
benchmarking can be done on a project
level, but also on a larger scale to
determine how and why your business
is successful. It is a continuous process
in which organizations continually seek
to improve their practices.
Uniformity and normalizationOne of the biggest challenges for
metric benchmarking is the variety of
metric definitions used among com-
panies or divisions. Definitions may
change over time within the same
Project Control Professional May 2017 7
organization due to changes in leader-
ship and priorities. The most useful
comparisons can be made when metric
definitions are shared between business
units and remain unchanged so
improvements can be verified.
In order to calibrate and benchmark
project data it is advised to set up a
benchmarking tool, to have a project
history and benchmarking solution that
fits your needs. Benchmarking can be
executed by comparing the different
ratios and characteristic values after the
project. To be able to compare projects,
it is critical to adjust for scope changes,
locations, market conditions and timing.
This process is called normalization and
includes indexation and escalation of
historic project costs, enabling you to
compare apples to apples. Using this
method for your entire cost database
with regular intervals rather than on an
ad-hoc basis, ensures quality and re-
duces the risk of errors.
PortfolioOnce the basis for benchmarking, such
as breakdown structures and project
metrics, has been set up, it can not only
be applied to individual projects but to
an organization’s project portfolio as
well. It may provide insight into the
overall performance of the organ-
ization, but may also uncover trends
like projects that underperform in a
certain regional area, or specific types
of projects that are doing relatively
well. This could then be a starting point
for further investigation, for example
whether future projects in that specific
region should be estimated or executed
differently. Consistency in project
reporting and measurement leads to
better insights, improved decision
making and the ability to capture
lessons learned, which are needed for a
state of continuous improvement.
Cost estimating relationshipsAnother example of using metrics for
the purpose of benchmarking and con-
tinuous improvement is so-called cost
estimating relationships (CERs). A
CER is a formula in which the cost of
(part of) a project or cost element is
related to parameters of that same
project or cost element. Those para-
meters could be either physical or
functional. An example of a CER is the
relation between length, diameter and
operating pressure of a pipeline and its
costs. These CERs can only be deter-
mined based on historical project data.
Consequently, this data should be
captured in a precise and consistent
manner, where not only costs of the
project are stored, but also the para-
meters that relate to it. As long as a cost
database of an organization is extensive
enough, modern software solutions can
determine cost estimating relationships
through automated regression analysis.
After each executed project, the cost
estimating relationships that were used
can be benchmarked using the actual
costs and adjusted where needed,
resulting in continuously improving the
available cost data.
OrganizationAlthough already mentioned, I’d like to
stress the importance of the proper
organization of the project controls
cycle. Without clear knowledge, pro-
cesses and procedures for all those
involved, the intention might be there
but the realization may not. Especially
since many roles from various depart-
ments are taking part in a project,
information might easily get lost or
misinterpreted. What’s more, it’s no
exception when at the end of a project,
the team quickly moves to the next,
without taking time for a proper close-
out, capturing lessons learned and
storing all information that might be
relevant in the future. This should be
avoided by using clear procedures at all
levels of the organization.
ConclusionIn the three articles I’ve written for this
journal, of which the first was publish-
ed in the February edition, I empha-
sized the importance of improving the
quality of project controls. Major cost
and schedule overruns within large
capital projects are rule rather than
exception. There may be many causes
for this phenomenon, from lack of
engineering insight to poor manage-
ment decisions. However, the common
denominator is that project controls is
too often an activity independent from
other project phases. In an analogy with
the well-known plan-do-check-act
(PDCA) cycle, I advocate an approach
that integrates estimating, planning,
control and analysis, executed based on
facts rather than gut feeling. Having the
right knowledge, procedures and com-
munication is a good starting point. A
software solution that integrates the
four major disciplines certainly helps in
this regard. It won’t solve all your
issues, but it’s an important step
towards improving your project con-
trols on a continuous basis.
* Christiaan des Bouvrie, CEO,
Cost Engineering Consultancy
Email: [email protected]
Cost Engineering provides consulting
services and software to organizations
worldwide. They support in cost
estimating, cost validation and project
controls activities in a wide variety of
projects. (See advertisement on page 2.)
8 Project Control Professional May 2017
interview
‘Working while learning with an apprenticeship’Ryan Laflin, who works for Aker Solutions,is in the second year of his Level 3 Apprenticeship inProject Control and gives Nigel Hibberd his views on the programme and what it has done for hiscareer. This interview is part of a series on candidates who have undertaken a Project Controlapprenticeship.
Nigel Hibberd
Thank you, Ryan, for agreeing to do
this interview. The ACostE, with
ECITB, is running a series of articles
on how people who have completed or
are undertaking the Project Control
Apprenticeships feel about having
undertaking the programme. It is felt it
would be good to capture the views of
someone who has recently completed
the programme, so we can raise the
project control profile as a real career
leading to professional status.
What qualifications did you have
when you chose to join the Apprentice-
ship and what other careers did you
consider? What was the main driver for
you selecting the Project Control
Apprenticeship?
Ryan Laflin
I left school with 10 GCSEs A*–C and
then went on to college, where I
achieved two A-Levels and a BTEC
Diploma. I had considered doing a
degree at university but was unsure and
more excited at the prospect of working
while learning with an apprenticeship.
Nigel Hibberd
How long is it since you started your
Level 3 Project Control Apprentice-
ship, and how many QCF units have
you completed to date?
Ryan Laflin
I started my Apprenticeship in Sept-
ember 2014. In the first year I studied
full time at Richmond College towards
achieving a BTEC Level 3 in Engin-
eering. Since September 2015 I have
been working towards the NVQ.
Nigel Hibberd
In the first year what were the main
topics you covered, and what was your
key learning?
Ryan Laflin
In the first year, I gained a general
understanding of a variety of topics in
engineering. This included subjects
such as drawing methods, commercial
aspects of engineering companies and
3D modelling training (CAD), using a
lot of mathematical methods.
Nigel Hibberd
What was the Apprenticeship delivery
pattern in the first year? How much
time in the training school and how
much time at work?
Ryan Laflin
In the first year, I was at college full
time. This prepared me with an under-
standing of what would be expected
when I started work. In addition, I did a
number of training courses, such as
HSE Awareness and Risk Management.
Nigel Hibberd
In the second year, what were the main
topics you covered, and what was your
key learning?
Ryan Laflin
In the second year, topics included
Engineering Science, Fluid Mechanics
and Analytical Methods. These were
generally more focused on the math-
ematical aspects of engineering, in-
cluding the behaviour and character-
istics of fluids in engineering systems.
Nigel Hibberd
What was the Apprenticeship delivery
pattern in the second year? How much
time in the training school and how
much time at work?
Ryan Laflin
The second year was very different from
the first. Four days of the week were
spent in the office working on a project
with the planning team, while just one
day was spent at college. All the college
work was coursework based.
I worked on my QCF at the end of
each week, dedicating some time to
look back on the work I had com-
pleted and how it could help me
complete my QCF.
Nigel Hibberd
In the third and fourth year, what do you
expect the pattern of delivery to be? Will
all your time be in work? How much
time will be spent on your QCF 3?
Ryan Laflin
I expect the delivery pattern to be
similar to the second year, but I think
I will be able to spend more time
working on my QCF, as I will have
gained more experience which will
help me work through more modules
on the QCF.
Nigel Hibberd
What is your current job role and do
you feel undertaking your apprentice-
ship is preparing you adequately?
Ryan Laflin
I am currently working on a project as
part of the Planning Team, where I help
to report the progress of the engineering
team to the client on a bi-weekly basis.
A large part of my work is produced
using Excel and Primavera, as well as
bespoke company software. The App-
renticeship has given me a good found-
ation to get started in my role and I will
hopefully continue to improve my
knowledge and understanding. Overall,
I feel the Apprenticeship is preparing me
well and is putting me on the right track.
Nigel Hibberd
Overall, what learning have you found
most useful in the day job?
Project Control Professional May 2017 9
interview
Ryan Laflin
I found the practical, on-the-job activ-
ities as my preferred way of learning.
Actually seeing how things are done
and understanding why they are impor-
tant has really helped me learn and
improve my skills.
Nigel Hibberd
Is there anything you feel should be
added to the Apprenticeship to better
prepare you for the day job?
Ryan Laflin
I feel a more project control-driven
lesson at college that involved the use
of project tools, such as Primavera,
would have been useful.
Nigel Hibberd
What aspects surprised you the most
about doing the Level 3 Project Control
Apprenticeship? Have you done any-
thing similar before?
Ryan Laflin
I think the level of involvement in the
company in the second year has been a
great experience. Working on a project
has been insightful and helped me
understand project control far better
than I did before and in the first year.
Nigel Hibberd
It is interesting how much you value
the time in the company. How could the
course have prepared you better?
Ryan Laflin
I think if there was a module or lesson
that involved the use of project control
tools such as Primavera, I would have
been better prepared when I started at
the company.
Nigel Hibberd
The process is fresh in your mind; are
there any aspects you particularly like
and are there any aspects you would
like to see improved in the delivery
process?
Ryan Laflin
I have enjoyed the independent work
and research required in order to
complete the assignments in my first
two years so far. As an improvement, I
would suggest that the QCF assessors
need to visit on a more frequent basis to
enable more support and guidance.
Nigel Hibberd
That is very interesting observation,
Ryan. I take it you were doing Level 2;
how often did you see your assessors
and what do you feel you most valued
from your time with the assessors?
Ryan Laflin
I am doing QCF Level 3 and assessors
come into the workplace four times a
year; providing important general
support and guidance on how to present
evidence for the modules. You can,
however, send work in between visits
via email for review or submit units in
eQual, which is a web-enabled assess-
ment tool for QCF units and quali-
fications.
Nigel Hibberd
How important do you think it is that
the QCF Level 3 diploma is an integral
part of the Apprenticeship?
Ryan Laflin
I think it is very important; it helps
ensure a greater understanding across
all of the project controls departments –
planning, cost, change and risk. The
QCF also helps you to understand what
is expected of you in the workplace –
with an emphasis on the quality of
work that you produce and how well
you work with colleagues and team
members in order to achieve your
shared goals and objectives.
Nigel Hibberd
I am glad you feel that way because I
also feel it is important. Do you feel
there is a need for a higher-level
Ryan in discussion witha colleague at Aker
Solutions
10 Project Control Professional May 2017
Apprenticeship, say at Level 6, which I
see would be a vehicle to uplift your
Level 3 Apprenticeship to a degree
level by completing the supplementary
work required. Would you see this as a
way forward for your longer-term
development?
Ryan Laflin
Yes, I think it would be a great oppor-
tunity for people who wanted to begin
the Apprenticeship at a higher level
and also one I would consider in the
future.
Nigel Hibberd
It is really good to hear how you feel it
has been a positive experience. Do you
feel others with a similar background to
yourself would benefit from under-
taking the programme?
Ryan Laflin
I would say so. I was unsure of what I
wanted to do when I left college, but
the Apprenticeship provided me with a
chance to develop new skills and
achieve further qualifications while
working towards a professional career.
Nigel Hibberd
What are your aspirations, career-
wise, in the five years following your
App-renticeship, and do you see your-
self staying in project control in the
longer term?
Ryan Laflin
In the five years following the App-
renticeship I hope to continue working
on projects within a planning team. I
can see myself having a long-term
career in project controls.
Nigel Hibberd
Ryan, that is really good to hear you see
it as a good long-term career for you.
What professional aspirations do you
have and do you see becoming profess-
ionally Accredited or Chartered as
being an ultimate goal?
Ryan Laflin
Maybe one day. At the moment, I am
focusing on the next few years to try to
complete my Apprenticeship and then
continue to improve my skills and
knowledge in order to become a
successful planner.
Nigel Hibberd
Ryan, I can understand you need to
focus on completing the Apprentice-
ship first. It was really good to see how
someone who at sixth form was un-
decided which way to go and opted for
the Apprenticeship, feeling it would
suit him better, and this far into the
programme still believe it was right
decision.
Hopefully your comments will moti-
vate others like you ‘to have a go!’
Ryan Laflin
It has been a great experience for me so
far, so I hope others will undertake a
similar path.
Nigel Hibberd
Thank you very much, Ryan, I am so
pleased you have found it such a
quality experience.
PROFILES
Ryan Laflin
22 years old. Ryan left college with two
A Levels and a BTEC Diploma, but was
undecided about attending university. He
joined the Apprenticeship Scheme with
Aker Solutions in September 2014.
Since then he has completed a BTEC
Level 3 in Engineering and is now
working towards an HNC in Mechanical
Engineering, as well as undertaking a
QCF Level 3 in Project Control, as part
of his apprenticeship.
He is currently working as part of the
Planning Team within Aker Solutions for
four days of the week. The other day is
spent at Richmond College as part of the
HNC in Mechanical Engineering.
Nigel Hibberd
Nigel retired from BNG (British Nuclear
Group) 10 years ago, after 30 years in
project control, having held various
project services roles including Head of
the Project Control function for BNFL
Engineering.
He studied Industrial Engineering at
Cranfield, followed by a period in
industrial engineering before moving
into Production and Works Management.
Nigel was Chairman of ProVoc for
around 10 years before he retired, which
was the national steering group for the
national occupational standards.
Since retirement he works part time as a
Project Control QCF Assessor, lectures
on Project Control at a couple of
universities and was Chairman of the
ACostE’s Accreditation Board, which
delivers tiered Accreditation to
Incorporated and Certified Professional
level , for cost engineers, estimators and
planners.
For more information on Accreditation
email [email protected] or
telephone 07803 248 427.
interview
ARTICLES WANTEDIf you have a technical paper, article or opinion piece that you
think may be of interest to our members, please email the Editor,Clive Wellings, via [email protected],
with a précis.
Are you looking to gaina qualification?
Maybe members of your staff or team are?
Have you thought of doing a QCF Qualification (formerly known as NVQ)?
The Assessment Service Centre (TASC), as part of The Association of Cost
Engineers Limited, offers QCF Level 2, 3 and 5 Diplomas in
Cost Engineering, Estimating, Planning and Project Control together with
SCQF Levels 5 and 6 in Cost Engineering, Estimating, Planning and Project
Control, all utilising convenient e-portfolios.
The National Occupational Standards for these qualifications have been
developed by industry for industry.
If you are interested and would like more information then please give
Helen Jackson a call on 01270 763646 or email [email protected].
The Assessment Service Centre, Lea House, 5 Middlewich Road, Sandbach,
Cheshire CW11 1XL
Project Control Professional May 2017 11
12 Project Control Professional May 2017
news & events
cover story
The White Tree takes shapeThe White Tree (L’Arbre Blanc), a
56-metre tall residential tower in
Montpellier, France, is shortly
due for completion.
At 17 storeys tall it contains 120
apartments – each with a balcony/shade
deck, a restaurant, an art gallery,
offices, and a rooftop penthouse bar.
The building has been designed by
Japanese architects Sou Fujimoto to
reflect the ideology that architecture
should reflect forms found in nature. As
the name suggests, it is designed to
resemble a tree, with the balconies
protruding from the ‘trunk’ of the
building like tree branches.
Montpellier’s tradition of outdoor
living has also had an influence on the
design approach. An intention of the
design is that residents will have the
impression that they are outside when
they are indoors, by mixing the two
settings. The structure’s balconies are
claimed to draw natural light, absorb-
ing sunshine the same way leaves do.
Built from modular units, the 10,000
square metre, mixed-use building
features many different layouts with
panoramic views of the nearby mount-
ains and the Mediterranean Sea.
Montpellier is the eighth largest city
in France and contains three univer-
sities. It is the third-largest French city
on the Mediterranean coast after
Marseille and Nice. ww
w.D
esig
nR
ulz
.co
m
ISO 44001 launchedBSI has launched ISO 44001:Collaborative business relationshipmanagement systems – requirementsand frameworks. The new international
standard replaces BS 11000, and
provides guidance for identifying,
developing and managing collaborative
relationships with or between organ-
izations.
ISO 44001 addresses the manage-
ment system of an organization, and
provides a framework for how organ-
izations can establish a management
system, as well as the operational
process requirements for specific or
individual organizational relationship
engagement.
The standard also provides guidance
on how effective collaboration requires
two or more organizations to work well
together, with the necessity that a man-
agement system needs to accom-
modate the activities of both parties.
Differing cultures in organizations, and
the challenges this can pose to synergy,
are covered in the standard to ensure
that organizations have the right tem-
plate to deliver enhanced benefit to
stakeholders through collaborative
approaches.
There is continuity with the new ISO
44001 and its predecessor, BS 11000;
the key requirements from BS 11000
have been retained to ensure the focus
on the evolving nature of a relation-
ship’s development. ISO 44001 uses a
high-level structure (HLS) – featuring
terms, definitions, headings and text
common to all management system
standards.
Project Control Professional May 2017 13
Cost Engineering Tube Mapby Dale Shermon*
Cost engineering has recently hadan increased visibility. With theage of austerity, the costs of
projects, systems and services have comemore into focus. Cost engineers havetechnical background; they are notaccountants. For cost engineers, theirfocus is not watts, newtons, volts, ampsor kilograms, but dollars, euros andpounds.
They have a number of purposes totheir work; cost predictions are not theend in itself. It is always necessary toconsider the answer to the question:‘What is the requirement?’
Potential applications of costengineering include, but not limited to:
� Financial analysis (for example, affordability, budgeting)
� Economic analysis (for example, options analysis)
� Cost benefit analysis (for example, different process or technology)
� Business case analysis (for example,
due diligence of capital expenditure)
� Project management and project control (for example, setting EVM baseline)
� Design and performance trade-off decisions (for example, analysis of alternative)
� Acquisition analysis (for example, technology insertion).
It is not commonly appreciated thatthere are a number of different typesof cost prediction which can bedeployed which are suitable todifferent applications including:
� Rough Order of Magnitude (ROM) cost
� Independent Cost Estimate (ICE)� Whole-life cost (WLC) or Life-Cycle
Cost Estimate (LCCE)� Budgetary cost estimate� Commercially committing proposal
estimate
� Discounted cash flow and Net Present Value (NPV)
� Parametric top–down forecast� Should cost/would cost/could cost� Operating & support cost or
Through-Life Cost (TLC)� Activity-Based Costing (ABC).
To achieve these cost predictions acost engineer needs a host ofcompetencies, as shown in red line onthe Tube Map, shown overleaf.
It takes experience, knowledge andunderstanding to produce an estimatethat is justified and credible. It takesscience, maths and art to communicatean estimate that will withstandscrutiny!
Please email [email protected] your address if you would like afull-size copy of the Cost EngineeringTube Map poster. ➔
* Dale Shermon is a QinetiQ Fellow,Managing Consultant.
The Magnetic LeaderRoberta Matuson* became a directorat the heady age of 24, an experiencethat, years later, inspired her topublically apologize to her formeremployees. Since then she’s made ither mission to ensure that no one willbe the kind of boss she once was. TheMagnetic Leader is the latest step inher quest to help management stoprepelling talent.
In her new book she challengesmanagers to be the kind of leadersthey wish they had. Matuson knowsfirst hand that, while most leadersthink they are magnetic, theiremployees disagree.
So, what makes for a magneticleader? Matuson says it comes down toseven traits: authenticity, selflessness,strong communication, charisma,transparency, vision, and resilience.Magnetic leaders challenge the statusquo, try to improve themselves everyday, keep their energy levels high,charge up their followers, and aren’tafraid to fail.
Through The Magnetic Leader
Matuson aids readers in transformingtheir leadership style from push to pull,repel to attract, dismal to good, andthen good to great. The book offersstraightforward tips and insights ontopics, including how to assess yourcurrent leaders, why employeeengagement programmes don’t work,and tips on thoughtful terminations.With this book, Matuson asks us toconsider that the quality of acompany’s leadership is the mostimportant factor in attracting andretaining high-quality employees.
‘Roberta Matuson has good news:
you don’t have to be born withpersonal magnetism to be a greatleader. With her guidance, you canlearn to be irresistibly, magneticallyattractive to the people you lead – andachieve more than you ever thoughtyou could.’ – Marshall Goldsmith, NewYork Times-bestselling author
‘This book will attract those leaderswho see people as assets and repelthose who see them as expenses.’ –Alan Weiss, author of ‘Million DollarMaverick’
The Magnetic Leader (Routledge, 2017,178pp, hardback, £18.99, ISBN:9781629561653)
* Roberta Chinsky Matuson, President ofMatuson Consulting, has helped leadersin Fortune 500 companies, includingGeneral Motors, New Balance, TheBoston Beer Company, and small tomedium-sized businesses achievedramatic growth and market leadershipthrough the maximization of talent. Sheis the person that top employment siteMonster and global retail giant Staplesturn to for advice on talent. One of herprevious books, Suddenly in Charge, wasa Washington Post Top 5 Business Bookfor Leaders.
book review
14 Project Control Professional May 2017
Project Control Professional May 2017 15© QinetiQ 2017
16 Project Control Professional May 2017
technical paper
Semantics in total cost managementby Ing. Gianluca di Castri1, DIF, EIE/ICEC.A
Project Control Professional May 2017 17
technical paper
18 Project Control Professional May 2017
technical paper
Project Control Professional May 2017 19
technical paper
.
20 Project Control Professional May 2017
technical paper
Project Control Professional May 2017 21
technical paper
22 Project Control Professional May 2017
technical paper
Project Control Professional May 2017 23
Your route to professional status via ACostE
technical paper
This paper was presented at the 10th ICEC World Conference held in Rio de Janeiro in 2016. It is reproduced here by kindpermission of the International Cost Engineering Council © ICEC 2016
24 Project Control Professional May 2017
Technical abstractsTechnical abstracts – briefparticulars of the contents
of journals received byACostE and available
for loan from the Sandbach office
CIVIL ENGINEERING SURVEYORPublished by the Chartered Institution
of Civil Engineering Surveyors
February 2017
Main articles include:
Finite resource, growing demand:
How Asia manages its water supply –
Alan Man, Managing Director for
Water in Greater China; and William
Yong, Managing Director for Water in
Southeast Asia, Black & Veatch –
How Asia’s water industry is tackling
growing demand – Modern Asian
cities are feeling the pressure of
growing populations, improved
economies and a rising middle class.
These factors are impacting their water
supply and water infrastructure.
Retention loved by some, loathed by
others – Do such funds work? –
Andrew Leisk, FCInstCES, FCIOB,
MRICS – The divisive issue of
retention in construction – Retention is
a divisive issue in the construction
industry and is the most commonly
used performance security but,
unfortunately, its use is not effective
with regard to its stated function.
March 2017
What does chartered status mean to
you? – Andrew Leisk, FCInstCES,
FCIOB, MRICS, on the very personal
achievement of chartered status.
Seeking chartered status is very much
a case of saying good things about
oneself.
Asbestos in soil and the role of
effective air monitoring and analysis –
Dave Cooper, Commercial Director,
Lucion – Using air monitoring and
analysis to reduce asbestos exposure
risks – Historical waste management
and demolition practice has resulted in
asbestos-containing materials (ACM)
being potentially present in soil or
made ground at any brownfield site.
ENGINEERING & TECHNOLOGYPublished by The Institution of
Engineering & Technology
Vol. 12, Issue 1, February 2017
The euro was launched 15 years ago
as one of the building blocks of a
federated Europe. It holds the union
together and the currency markets see
no danger of it collapsing – by Clem
Chambers.
Rise of the Icebreaker – As the
geopolitics of the Arctic become ever
frostier, the icebreaker is proving a
key asset – and an inspiration in
technology design – by Felicity Aston.
The Eccentric Engineer – by Justin
Pollard – Earning a crust: the inventor
of the seismoscope. It was the
mathematical genius of a brilliant
engineer in first-century China that led
to the creation of the first earthquake
detector – and his reward? – payment
in bread.
Vol. 12, Issue 2, March 2017
Driverless cars: when and where? – It
is likely to be a long time before
drivers are redundant, but cars are
taking on more and more tasks under
computer control – by Lawrie Jones.
Wireless communications will guide
cars through congestion – Every road
tells a story – by Chris Edwards.
THE CHEMICAL ENGINEERPublished by the Institute of Chemical
Engineers
Issue 908 – February 2017
Dawn of a new era – How Sellafield is
introducing a new clean-up stage to its
operations – Lisa Maxwell, ILW
Strategic Authority, Remediation,
Sellafield Ltd. The only certainty in
the future of the UK nuclear industry
is change. There is a resurgence in
nuclear power with the path forward
paved for a fleet of new nuclear
reactors.
Out of retirement … or how to keep
busy in your 70s – Trevor Hobday,
FIChemE, Steam Locomotive
Department, Gloucestershire/
Warwickshire Railway.
Issue 909 – March 2017
Walking the walk – Industry leaders
must be the catalyst for the
equilibrium shift towards a diverse and
inclusive profession – by Marlene
Kanga, Non-Executive Director,
Sydney Water Corporation; President
Elect, World Federation of
Engineering Organisations – The
importance of increasing the
participation of women in the
workforce, especially in science and
engineering sectors, has been
recognised around the world as being
essential for economic growth, for
innovation, developing new industries,
and for the knowledge economy.
IChemE launches The Silver Book –
New Form of Contract covers
professional services agreements.
IChemE has launched a completely
new model form of contract book,
Professional Services Contract – the
Silver Book, which covers profession-
al services agreements and is suitable
for both UK and international use.
ARTICLES WANTEDIf you have a technical paper, article or opinion piece that you think may be of interest
to our members, please email the Editor, Clive Wellings, via [email protected] with a précis
Project Control Professional May 2017 25
The Association extends a warm welcome to the following members, whohave recently been elected by the Membership Admissions Committeenew members
IAIN MALCOLM TAYLOR – 6688 –MemberConsultant Estimator – Transport forLondon, Power & Cooling Upgrades,London
MICHAEL JAMES RICHARDSON – 6689– AssociateCost Engineer – DE&S/CAAS, Bristol
MAN FUNG LO – 6690 – MemberLecturer – Hong Kong PolytechnicUniversity, Kowloon, Hong Kong
SAMANTHA-JAYNE MCKAY – 6691 –GraduateProject Cost Analyst – NSGEnvironmental Ltd, Lancashire
KENNETH JOHN RANDLE – 6692 –MemberSenior Cost Engineer – Cost Assurance& Analysis Service (CAAS), Somerset
MOHAMED RMADAN – 6693 –MemberProject Controls Coordinator – ENI IraqBV, Dubai, UAE
KIERAN MICHAEL HODGSON – 6694 –Student
KEVIN WADE – 6695 – AssociateCost Forecaster – Cost Assurance &Analysis Service (CAAS), Bristol
CHAN KWOK LEUNG – 6696 – MemberProject Manager – Techoy ConstructionCompany Limited, Hong Kong
STEPHANIE ANNE ILLINGWORTH – 6697– MemberProject Controls Manager – CavendishNuclear Limited, Manchester
SURENDRANATH RAM – 6698 –MemberCommercial Manager – Qatari DiarProjects Managements, Tunisia
MUNTASIR ELRASHID MOHAMEDYOUSIF – 6699 – MemberConstruction Manager – AG MiddleEast LLC, Doha, Qatar
MICHAEL MUDIAGA OBATA – 6700 –AssociateSenior Corporate Management
Consultant – Regal Diadem Limited
APRIL MEI CHEE HWANG – 6701 –GraduateTrainee Cost Engineer – JBPU (B) SDNBHD, Brunei
SABIN KUNCHERIA PURACKAL – 6702 –GraduateGraduate Trainee Engineer – Ministry ofDefence, Bristol
STEPHEN WILLIAM BAKER – 6703 –MemberSenior Cost Engineer (Head ofProfession) – Ministry of Defence, Bristol
UPGRADEDANDREW PETER CHILLINGSWORTH –5634 – FellowHead of Planning & Training – AtkinsTransportation, London
MOHAMED HUMDHAN NAHUMANBATCHA – 5790 – FellowCountry Head for Project & ProgramManagement Services –Arcadis/Utamacon (B) SDN BHD, Brunei,Darussalam
Senior UK appointmentat G&P quality expertQuality management expert G&P hassignificantly strengthened its UK seniormanagement team with the appointmentof experienced aerospace industry exec-utive, David Whiffin, in the role of UKgeneral manager.
In the position, David will lead G&P’sUK business, with a particular emphasison strengthening the company’s currentclient relationships and transferring itsextensive automotive industry experienceinto the aerospace and other relatedsectors. The move will then allow manymore high-value manufacturing com-panies across a wide range of sectors toexperience improvements in their qualitymanagement, resulting in the numerousbenefits of lean production, waste reduc-tion and eradication of non-conformities,utilising the award winning QualityExcellence Model.
‘I’m incredibly excited to be taking onthis role and helping G&P continue to
move forward,’ comments David Whiffin,UK general manager, G&P. ‘The companyhas achieved substantial growth andsuccess in recent years and I will belooking to extend this through the com-bination of my own aerospace industryexperience and G&P’s established globalposition in both the automotive andaerospace sectors.’
As a qualified engineer, David has con-siderable experience in the aerospaceindustry in military, civil and commercialenvironments. He started his career as ahelicopter engineering apprentice in thearmy before working for some majorairlines and maintenance, repair andoverhaul (MRO) organizations across awide range of aircraft types. David alsoworked for a major helicopter manu-facturer, reducing the operating costs foran MoD aircraft programme as well asleading programme delivery for manu-facture and delivery of several AirbusA380 components. Most recently Davidestablished Altran, an aerospace manu-facturing consultancy business for a globalengineering consultancy, taking the
business to a turnover of £5m within itsfirst two years.
Speaking on the appointment, ArneWillerslev-Legrand, group managingdirector, G&P, said: ‘We are delighted towelcome David in this strategically signi-ficant move for us. G&P has alreadyestablished a good working relationshipwith many high-value manufacturers andtheir component suppliers across a grow-ing range of industry sectors. WithDavid’s appointment, we intend to helpeven more improve their quality issues,reduce their levels of waste and benefitfrom similar lean manufacturing processesthat are widely and successful adoptedacross other sectors. In addition to em-bracing David’s industry experience toimprove our client’s performance, Davidwill utilise our award-winning, innovativeQuality Excellence Model, targeting theroot cause of manufacturing problems anderadicate them at source, significantlyenhancing our customers’ overall environ-mental performance.’
David Whiffin will be based at G&P’sglobal HQ at Fort Dunlop, Birmingham.
appointments
diary of eventsProject Controls ExpoThursday 16th – all dayEmirates Arsenal Stadium, London
FEBRUARY Association of Cost EngineersThursday 1st – 2.00 pmCouncil Meeting
MAYInternational Federation of Surveyors (FIG)Sunday 6th to Thursday 10thFIG Congress 2018, Istanbul, Turkey
JUNE AACE InternationalSunday 24th to Wednesday 27th62nd Annual Meeting, Manchester Grand Hyatt, San Diego,California, USA
NOVEMBERICEC/PAQS/Australian Institute ofQuantity Surveyors (AIQS)Wednesday 14th to Friday 16th11th ICEC World Congress (25thInternational Cost EngineeringCongress)/22nd PAQS AnnualMeetingInternational Convention Centre,Sydney, Australia
International Federation ofSurveyors (FIG)FIG Working Week 2019, Vietnam
JUNEAACE InternationalSunday 16th to Wednesday 19th63rd Annual MeetingSheraton Centre, New Orleans,Louisiana, USA
ICEC/AAQS/Ghana Institute ofSurveyors (GhIS)12th ICEC World Congress (26th International Cost EngineeringCongress), Accra, Ghana
MAYACostE Southern RegionTiuesday 16th – 6.15 pmTechnical Meeting – Talk onHeathrow Airport Expansion byMike BallRoyal Over-Seas League, London
International Federation ofSurveyors (FIG)Monday 29th May to Friday 2nd JuneFIG Working Week 2017Helsinki, Finland
JUNEAssociation of Cost EngineersThursday 1st – 2.00 pmCouncil MeetingOffices of Mott MacDonald, 10 Fleet Place, London EC4M 7RB
AACE InternationalSunday 11th to Wednesday 14th61st Annual MeetingHyatt Regency, Orlando, Florida, USA
JULYCranfield UniversityWednesday 5thCost Engineering – a thoughtleadership conferenceVincent Building, College Road,Cranfield
Pacific Association of QuantitySurveyors (PAQS)/CanadianAssociation of Quantity Surveyors(CIQS)Friday 21st to Tuesday 25th 21st Annual PAQS Congress – ‘Green Developments; The New Era’Vancouver, BC, Canada
ACostE Southern RegionEvening Walking Tour in LondonDetails to be confirmed
SEPTEMBERAssociation of Cost EngineersThursday 7th – 2.00 pmCouncil MeetingOffices of Mott MacDonald, 10 Fleet Place, London EC4M 7RB
NOVEMBERAssociation of Cost EngineersThursday 2nd – 2.00 pmCouncil MeetingOffices of Mott MacDonald, 10 Fleet Place, London EC4M 7RB
2017Reminder re use of ACostE designation
Members who resign fromthe Association or whose
membership has lapsed or hasbeen withdrawn because of
non-payment of subscriptionsare not entitled to continue
to use membershipdesignations after their nameor in any other manner which
could suggest that they arestill a member of the
Association. MembershipCertificates should be
returned to our Sandbachoffice if membership of the
Association ceases, forwhatever reason.
Retired membership rateAssociation Members are
reminded that the Byelaws 18& 19 detail the criteria for a
Retired Member. Anyone whois in receipt of payments from
an employer or who is self-employed shall not be entitled
to the reduced membershiprate.
2020
2018
2019
26 Project Control Professional May 2017
ARTICLES WANTEDIf you have a technical paper,
article or opinion piece that you
think may be of interest to our
members, please email the Editor,
Clive Wellings, via
with a précis
Project Control Professional May 2017 27
Association Council DIRECTORSA. Pammenter – PresidentA.J. Barltrop – Immediate Past PresidentA. Ray – Vice-President, International Chairman
N. Hibberd – Vice-PresidentR. Carter – Treasurer, The Assessment ServiceCentre Contracts and Finance
V. Thompson – Admissions ChairmanJ. Ward – Company Secretary, The Assessment Service Centre Operations
R.B. Watson – Engineering Services Chairman, The Assessment Service CentreChairman
Alan Jones – Accreditation ChairmanS. ForthRichard RobinsonJ. Studman
HONORARY VICE PRESIDENTR. Roy
CO-OPTED MEMBERSS.J. Allen – Southern Region ChairmanR.M. Batten – Engineering ChairmanP. Clewes – South West Regional Chairman
For your current information the Councilare actively engaged in the following forthe Association:
Administration, Finance, Admissions,Regions, Cost Engineering, Planning,Engineering Registration, IT and Website,Certification, Engineering Manufacture,Legal and Commercial, Liaison withexternal bodies, Publications, CommercialContract, Benchmarking, Life-Cycle Costing, Risk & OpportunityManagement, Bibliography, ICEC, QCFs,Cost Control/Management, Building forthe Future, Fellowship.
If you, as a Member of the Association,wish to contribute or liaise with a CouncilMember on any of the above subjects,please do so initially through our headoffice staff, who will provide you with thenecessary contact.
J. Dyson – Engineering Manufacturing Chairman
A. Godhawale – StrategyF. HoughtonA. Jones – Accreditation & Certification Chairman
A. LangridgeD. Langton – The Assessment Service CentreD. ReussE. Shehab – Company Membership Chairman
D. Shermon – SCAF RepresentativeP. Snowden – BAE Company RepresentativeS. Tammineni – Rolls-Royce Company Representative
ELECTED MEMBERSD. MillichampR. RobinsonP. ThompsonR. Whiting
HEAD OFFICE STAFFMrs V. Tattersall – ACostE/TASC AdministratorMrs H. Jackson – ACostE/TASC Finance
As well as all the discussions being
held on infrastructure renewal and
resilience which, in the UK, include
Heathrow, High Speed 2 and Hinkley,
there is also the pressing matter of global
warming. However, the real elephant in
the room is population growth. For
thousands of years population grew only
slowly, but in recent years it has jumped
dramatically. Between 1900 and 2000 the
increase in world population was three
times greater than in the entire previous
history of humanity, an increase from 1.5
billion to 6.1 billion in just 100 years. The
UN calculates that there are now more
than 7 billion living humans on Earth,
6.5% of all people ever born, yet less than
200 years ago we numbered a mere 1
billion. Admittedly, the world population
growth peaked in 1962, at around 2.1%,
and has come down to around half since
then, but we are still likely to number
over 11 billion by 2100. The real
challenge is not only in infrastructure
renewal and resilience but in providing
all the new infrastructure to support this
increase in population, as well as solving
the problem of global warming – quite a
legacy to leave to the next generation.
ICEC, as a global non-political and non-
profit confederation of professional
institutions in the fields of cost engineer-
ing, quantity surveying, project controls,
and project management, has an
important role in meeting this challenge
through:
• promotion of worldwide standards for
professional competencies, educational
programmes, and accreditation of edu-
cational programmes and degrees;
• active participation in professional
coalitions, such as the ICMS (Inter-
national Construction Measurement
Standards) effort;
• cooperation with similar institutions,
universities, and agencies in the
development of standards and research;
• cooperative agreements with other
institutions such as RICS, FIG, PAQS,
AAQS and IPMA.
ICEC encourages the conduct and
promotion of regional and worldwide
congresses, meetings, forums and
seminars.
The International Federation of
Surveyors (FIG) 2017 Working Week
will be held in Helsinki, Finland, from
Sunday 29 May to Thursday 2 June. The
overall theme is ‘Surveying the world of
tomorrow – from digitalization to
augmented reality’. This theme has been
chosen to highlight the opportunities and
open a view into the future where the
information we produce is, again, put into
a more efficient use.
AACE International are holding their
61st Annual Meeting at the Hyatt
Regency Hotel in Orlando, Florida, from
Sunday 11 to Wednesday 14 June 2017.
The 21st Pacific Association of
Quantity Surveyors (PAQS) Annual
Congress, entitled ‘Green Developments,
The New Era’, will be hosted by the
Canadian Association of Quantity
Surveyors (CIQS) in Vancouver, BG
Vancouver, from Friday 21 to Tuesday 25
July 2017. A meeting of the International
Cost Measurement Standards (ICMS)
Coalition will be held at this Congress.
The 2018 11th ICEC World Congress
(the 25th International Cost Engineering
Congress) will be hosted by the
Australian Institute of Quantity
Surveyors (AIQS) at the International
Convention Centre in Sydney, Australia,
from Wednesday 14 to Friday 16
November 2018.
The 2020 12th ICEC World Congress
(the 25th International Cost Engineering
Congress) will be hosted by the Ghana
Institution of Surveyors Quantity
Surveyors Division (GhIS).
Minutes of past meetings and details of
future meetings, as well as ICEC’s
International Roundup News, are all
available on the ICEC website at
www.ICostE.org.
ICEC news
Roger Batten, MBE,ICEC spokesman for the Association