Blue Book 2011

THE BLUE BOOK 2011
Accessible Knowledge for the

Property & Construction Industry
www.davislangdon.com www.aecom.com
Davis Langdon has compiled the information in this document from a number of sources. Davis Langdon has not verified that such
information is correct, accurate or complete. Whilst every care has been taken in the preparation of this document, Davis Langdon
makes no representation or warranty as to the accuracy or completeness of any statement in it including, without limitation, any
forecasts. Historical trends are not necessarily a reliable indicator for actual future performance. Davis Langdon accepts no liability
or responsibility to any party in respect of this document. This document has been prepared for the purpose of providing general
information, without taking account of any particular person’s objectives, situation or needs. You should seek professional advice having
regard to your own objectives, situation and needs before taking any action.
© Davis Langdon Australia Pty Ltd

Mark Beattie
Managing Director
Davis Langdon, Australia New Zealand
This is the thirteenth edition of The Blue Book and the first since we joined AECOM, one of the world's
largest providers of professional, technical and management support services in the world.
So what changes? For the most part, there will be no change to the way in which we provide the same
quality of service to our clients as we always have done. What will change is our ability to bring forward
insights and innovation that help clients look into the future.
As part of AECOM we believe Davis Langdon will be able to deliver even better construction consultancy
services in the built, natural and social environment. That belief stems from the fact that our services will
be founded on real evidence and knowledge gathered from unrivalled local, regional, national and global
experience. We are committed to making more knowledge available to our clients and colleagues through
publications such as this Blue Book. We work progressively to ensure the information it contains is useful
and relevant to our industry.
I'm excited to continue in my role as Managing Director for Australia and New Zealand. I can see the
immense opportunities and the potential to enable our growth both as a business and for all our staff as
we connect with AECOM.
AECOM (NYSE: ACM) is a global provider of professional technical and management support services to a broad range of markets,
Foreword
including transportation, facilities, environmental, energy, water and government. With approximately 51,000 employees around the
world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation
and collaborative technical excellence in delivering solutions that enhance and sustain the world’s built, natural and social environments.
A Fortune 500 company, AECOM serves clients in more than 100 countries and has annual revenue in excess of $6 billion.
More information on AECOM and its services can be found at www.aecom.com

KEEPING
KEEPING
AUSTRALIA &
NEWAUSTRALIA’S
ZEALAND'S
WHEELS TURNING
Booming population growth has the potential to affect the productivity, liveability and
futurefuture
prosperity of Australia.
prosperity Developing
of Australia and Neweffective strategies
Zealand. to meet
Developing these strategies
effective challengestoismeet
one of the
these
challenges is one of the most complex issues facing the property and construction industry today.
But if we can manage the competing demands of infrastructure and economic growth with sustainable
outcomes, we can create a tomorrow that’s beyond the dreams of today.
Davis Langdon have the global knowledge, industry experience and creative solutions to get us there.
Global Property and Construction Consultants

Project Management | Cost Management | Building Surveying
Specification Consulting | Urban Planning | Verification Services
Property Consultancy | Certification Services | Access Consulting
Contents
One: About Davis Langdon 1
Two: Construction Key Statistics
Australia 7
Three: Construction Key Statistics
New Zealand 17
Four: Cost Data and
Market Data 23
Five: Property Investment
Information 45
Six: Emerging Trends 53
Seven: Sustainability 63
Eight: Project Delivery, Strategies
and Business Assurance 75
Nine: Working Calendars 93
Ten: Directory of Key Offices 105
Contents
One: About Davis Langdon
Lumiere Apartments, Sydney, NSW

6 Davis Langdon, An AECOM Company
About
Davis Langdon
Utilising its industry strength,
Davis Langdon, as part of
AECOM, provides clients with
property and construction risk
and value management. The firm
manages time, cost and quality
imperatives to achieve successful
project outcomes that enhance
and sustain the world's built,
natural and social environments.
It also assists stakeholders
with compliance assurance
and identification of value
improvement possibilities.
www.davislangdon.com www.aecom.com 1
Davis Langdon brings together
a range of professional services
for total project delivery
Project Services
Project Management Cost Management
Our Project Managers take responsibility for total Designed to deliver professional cost planning
project delivery. With a clear understanding of the and quantity surveying services to a wide range
local business environment, our eyes are focused of building and engineering projects, our Cost
on your business outcomes. Management services balance time, cost and
quality for optimum outcomes, providing:
Our services are tailored to suit the specific needs
of individual projects, including: • feasibility and early cost advice
• managing projects • cost planning during design
• stakeholder management • tender documentation and evaluation
• strategies for delivery • project verification services
• risk and value management • construction phase cost management
• program management • tax depreciation/capital allowance
• contract administration • assessment and optimisation
• superintendent services • replacement valuations
• design management • life cycle capital planning
• independent overview
Cost Planning of Building Engineering
Services
We specialise in independent cost and value
management of Engineering Services in a wide
range of building types, technical facilities and
infrastructure projects, including:
• evaluation of sustainability focused options
• life cycle assessments

• capital cost estimating
• independent peer reviews
• design advice and procurement options
• expert witness services
• National Australian Built Environment Rating
System (NABERS) assessment services

Building Surveying Specification Consulting
From an independent, informed position, our Our Specification Consulting is tailored to meet
Building Surveying services provide unbiased the needs of all parties involved in the design
advice and assistance to the property industry and construction process, including design
in order to understand and meet their regulatory teams, developers, retailers, government bodies,
compliance obligations: educational institutions, private companies
and manufacturers. Our proprietary document
• building permits/private certification
management system is a global database that
• performance-based Building Code of Australia enables every project-specific specification to
(BCA) solutions be generated and developed as the design and
• fire safety engineering advice and audits documentation process evolves.
• building compliance audits for due diligence Our services also include design management
• design consultancy to BCA for monitoring of design teams, to ensure design
• approval facilitation quality and efficiency, minimise time delays and
design risk.
• Commonwealth Aged Care Certification
assessments
Access Consulting
• essential fire safety measure inspections
Our Access Consulting team provides an all
Urban Planning inclusive service to meet the project brief and
the client’s requirements. The aim is to ensure
Our Urban Planning services are designed to appropriate management of access provision to
deliver innovative and practical planning solutions facilities for all, specifically people with temporary
based on an agreed strategy to minimise risk and and permanent impairment or disability.
optimise outcomes. Applying knowledge gained
from extensive experience in the private and public Our mission is to enable independent, equitable,
sector, we offer a service that is reliable, personal functional and safe access and working
and cost effective, providing: environments for people of all abilities. We assist
design teams, building owners, work place
• project feasibility studies, highest and best use managers and home owners with:
advice
• existing building access reviews
• re-zoning advice and management of approval
process • design reviews of proposed developments,
including new build and alterations
• facilitation of approval for subdivision, land use
and development • action plans and building management plans
• OH&S system advice, safety in design and work
• community consultation and communication

site assessments
• expert evidence in planning appeals
• occupational therapy services
• due diligence assessments of planning controls
and opportunities • presentations and training
• design team participation in master planning • policy development and implementation
projects
We are committed to delivering
innovative solutions through our
global reach, local knowledge
and technical excellence
Sustainability Infrastructure Services

Sustainable Solutions Planning and Independent Reviewer/Verification
Delivery Services
We are committed to helping achieve sustainability Delivered to large infrastructure projects, we
goals through our specialist knowledge and provide verification to project stakeholders that
expertise nationally and globally. This commitment project performance requirements are progressively
is the heart of all our services. We work with our achieved through design and construction. We work
clients to meet the environmental, social and to provide a systematic overview and checking
economic challenges of developing new buildings process across the whole project with reporting that
and operating existing buildings, offering: provides confidence to stakeholders that the project
is on track and compliant.
• definition and implementation of sustainability
strategies for new construction and existing We review the systems in place to see that they
buildings are functioning, assess contractor performance
• identification of embodied energy in new and look forward to inform stakeholders of the
building designs project’s direction. We often team with design firms
to enable a technical review that is structured and
• identification of an existing building’s
risk focused.
environmental performance, planning energy
abatement strategies and improvement
opportunities and whole of life modelling Property Services
• creation of green specifications to ensure Property Performance Assessment
sustainability outcomes including designing Assessing the ability of property to meet its
out of waste expected performance levels, both from an owner
• environmental performance auditing with and occupier viewpoint, is increasingly important.
improvement opportunities identified Building performance has now been heightened

• research to identify best practices emerging from by community focus on achieving a greener built
around the world environment. We offer comparative assessments
of a single building or portfolio of buildings
covering condition, environmental impact and
social performance.
Our assessment results in a high level report that
identifies performance, benchmarks and highlights
improvement and abatement opportunities.

Technical Due Diligence Reports • SafetyMAP (OH&S)
Purchasers and vendors of property are • National Audit Tool (OH&S)
increasingly expected to undertake appropriate We are a recognised service authority for:
due diligence that enables well founded investment
• CFF (Civil Contractors Federation) Construction
and divestment decisions. We have developed an
Management Code
approach to the technical and physical building
assessment that identifies high risk and high • VicRoads Prequalification Scheme
value issues to be clearly evaluated and fully • Good Environmental Choice Australia (GECA)
appreciated. Through integration of specialists • Green Building Council Australia (GBCA)
advice, our reports are comprehensive and easy Product Identification Scheme Evaluation
to understand and many clients use them as a
foundation for their ongoing asset management. Second Party Auditing
As demand for assurance in the property and
Building Consultancy Services
construction industry increases, more of our
We assist property and portfolio owners with clients are undertaking Second Party Audits.
services aimed at improving investment returns These audits are focused on the specific
and efficiency of asset management: requirements of a client, as opposed to a
specific standard. These audits provide objective
• maintenance and capex planning implementation
evidence of compliance to a specification, as
• make good assessments and negotiations agreed between customer and supplier.
• essential fire safety measures audits Product Certification
• building defect diagnosis and reporting
In addition to auditing management systems,
• DDA access audits/action plans Davis Langdon is also working towards the
• NABERS Audits/Green Building Fund projects/ provision of Product Certification – enabling
energy efficiency consulting greater assurance for materials used in the
• Commercial Building Disclosure ratings and construction and wider industries.
reporting
• tax depreciation assessments DEGW
• replacement valuations DEGW is a specialist business consultancy service
that helps clients capitalise on the relationship
Certification Services between people and physical places to enhance
Third Party Certification to International organisational performance.
and National Standards
Through rigorous and structured evidence, and
Our assessors come from and understand the by really listening to the aspirations, strategic
industries in which our clients operate. This helps needs and practical commercial concerns of our
ensure that the certification process adds value clients, DEGW develops insightful solutions to
and contributes to business improvement. Our our clients’ challenges.
processes as a seperate entity, including the
physical separation of electronic data, ensure our DEGW’s services include research and strategic
independence from other operating areas. advice, strategic briefing for working and learning
environments, design strategy and management,
Our accredited services: and change or transition management associated
• ISO 9001:2008 (QA) with the physical environment.
• ISO 14001:2004 (EMS) DEGW provides these services to the corporate,
• AS/NZS 4801:2001 (OH&S) government, education and healthcare sectors.
• OHSAS 18001:2007 (OH&S)
Two: Construction Key Statistics - Australia
Wheller Gardens Aged Care, Brisbane, Queensland

Two:
Construction
Key Statistics
Australia
Construction Output 8
Exchange Rates 8
Industrial Relations 9
Labour Force and Productivity 10
Government Stimulus
Investment 11
Non-Residential

Building Approvals 11
Value of Building Work Done 12
Building Approvals for New Multi
Unit Residential Buildings 13
Value of Engineering
Work Done 14
Australian Construction Output
The total construction work completed during the year 2009-2010 was A$159.23 billion, equating to 9%
more than the previous year. The table below shows the activity level of each sector, while the total output of
residential and non-residential building activity is shown by state, in the chart below.
Value of Construction Work Done (Public and Private)
Type of Work A$ billion %

Residential Building 44 28%
Non-Residential Building 35 22%
Total Building Work Done 79 50%
Engineering Construction 80 50%
Total Construction Work Done 159 100.00%
Source: ABS 8755.0
|m) Residential and Non-Residential

Total Building Work Done – by States (AS
865 2,236
1,305
18,523
11,263
New South Wales
Victoria
Queensland
4,805
South Australia
Western Australia
Tasmania
Northern Territory
17,621
Australian Capital Territory
22,320
Source: ABS 8755.0
AUD Exchange Rates

1.40 140
1.20 120
1.00 100
USD, EUR, GBP, NZD
0.80 80
YEN
0.60 60
0.40 40
0.20 20
0.00 0
Jan-01
Jul-01
Jan-04
Jan-03
Jan-05
Jan-06
Jan-07
Jan-09
Jul-10
Jul-02
Jul-03
Jul-04
Jul-05
Jul-06
Jul-07
Jul-08
Jul-09
Jan-99
Jan-10
Jan-00
Jul-99
Jan-02
Jan-08
Jul-00
USD EUR GBP NZD YEN (right axis)
Source: Reserve Bank of Australia

Industrial Relations
Working Days Lost to Industrial Disputes per 1,000 Employees (National)
400
350
300
Working Days Lost
250
200
150
100
0
2000-2001
1998-1999
2001-2002
2002-2003
2003-2004
1999-2000
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Construction
268.9 393.0 234.1 237.0 237.2 231.7 200.2 90.8 13.9 11.8 31.6 43.3
All Industries
55.8 105.3 45.1 41.9 30.2 66.9 28.8 21.6 9.9 17.4 13.3 13.3
Source: ABS 6321.0.55.001
The Australian construction industry has historically had a very high level of industrial disputes, with
disputes in the non-residential sectors tending to be higher than in the residential sector. The past few

years saw industrial disputes reach their lowest levels in history, however the past 24 months has seen
a significant leap. Working days lost due to industrial disputes has increased 267% over the past 24
months, albeit off a very low base. Construction still remains one of the sectors least affected by industrial
disputes, with 43 days lost per 1,000 employees, compared to metal product manufacturing and other
manufacturing for example, which lost 51 days per 1,000 employees due to disputes.
Working Days Lost to Industrial Disputes per 1,000 Employees (By Sector)
60
50
Metal Product Manufacturing
40 and Other Manufacturing
Construction
30
Education and Training, Healthcare
20 and Social Assistance
Other Industries
10
Source: ABS 6321.0.55.001
Labour Force and Productivity
Labour Force Capacity Constraints
Compared to previous economic recoveries, Australia’s labour force has considerably less spare capacity
this time around. The expected high single digit unemployment forecast from 2009 did not eventuate as
organisations chose to reduce staff hours or shift to part-time labour instead of reducing staff numbers.
Businesses were mindful of the skills shortages experienced in the latter half of the past decade and have
since begun to replenish full-time positions as the nation’s total hours worked return to pre-GFC levels.
Although many industries implemented salary constraints during 2009, the low unemployment rate is now
on the cusp of creating wage price pressures that will once again contribute to escalating construction costs.
Unemployment Rate – Historical

12%
10%
8%
6%
4%
Recession
Recession
2%
Unemployment Rate
GFC
0%
Mar-84
Mar-09
May-88
Jul-92
Jan-80
Sep-96
Nov-00
Jan-05
Source: ABS 6202.0, Davis Langdon Research
Construction Productivity
Improving the nation’s productivity is imperative to our future economic prosperity. Relative to previous
economic downturns the national labour force has considerably less spare capacity plus with an ageing
population, the proportion of people within working age will continue to decline.
Coupled with strong demand for services, primarily driven by the resources boom, the labour force supply
will face challenges meeting future demand. However, recent trends have been favourable with labour
productivity in the Australian construction industry improving from 2009 to 2010.
Davis Langdon found that the Australian construction workforce (including engineering work) utilised an
average of 6.3 jobs for each million dollars worth of work done for the year ending March 2010, compared
to 6.8 jobs per million dollars for the same period in 2009.
Jobs Required per $1 million of Construction Work Done
NSW VIC QLD SA WA Australia

Residential & Non-Residential
16.7 10.6 13.9 14.2 11.6 13.1
Work Done
Total Work Done (Including
8.3 7.3 6.3 6.8 3.5 6.3
Engineering)
Proportion of Engineering
50% 31% 55% 52% 70% 52%
Work Done
Figures based on year end March 2010
Source: ABS 6291.0.55.001, ABS 8755.0, Davis Langdon Research

Government Stimulus Investment
Australia and New Zealand delivered the third and fourth highest stimulus measures respectively when
compared against other OECD countries. In Australia the bias was towards public sector investment
rather than tax cuts, whereas in New Zealand the strategy was reversed in an effort to minimise the
systemic impacts of the global financial crisis.
Stimulus Cost as a Percentage of 2008 GDP for Selected OECD Countries

-7%
Supportive Fiscal Packages

-5% 1) Decrease in Tax Revenue
2) Increase in Government Spending
-3%
-1%
1%
3%
5%
Switzerland
Ireland
New Zealand
Finland
Portugal
Luxembourg
Spain
Belgium
Japan
Netherlands
Australia
Italy
Hungary
Sweden
Slovakia
Canada
Austria
Poland
France
Czech
USA
Germany
Korea
Denmark
UK
Government Spending Revenues (Tax Breaks) Fiscal Balance Norway

Source: OECD
Non-Residential Building Approvals

Public sector investment during 2009-2010 has significantly lifted Australia’s construction output due
to stimulus investment. When compared to the 2007-2008 financial year, Education and Health sector
investment increased 370% and 100% respectively, while investment in Offices contracted by 58%.
Non-Residential Building Approvals (Financial Years)
2007 – 2008 2008 – 2009 2009 – 2010

1.9bn 1.1bn 1.3bn 0.7bn 3.8bn
2.2bn 6.1bn 2.1bn 4.7bn 0.6bn
1.3bn 1.6bn 5.8bn

4.2bn
2.9bn 1.8bn
2.7bn
3.4bn
9.9bn 5.5bn 5.9bn 16.1bn
4.9bn 3.4bn
Retail and Wholesale Offices Factories and Warehouses Education
Health Aged Care Recreation Non-Residential Accommodation
Source: ABS 8731.0
|m)
Value of Building Work Done (AS
NSW VIC QLD SA WA TAS NT ACT National

Residential New Residential 7,245 11,555 8,449 2,212 5,976 591 376 932 37,328
Alterations &
1,927 1,853 1,252 373 687 131 70 122 6,412
Additions
Non-Residential Private Sector 5,852 5,787 4,157 976 3,048 317 201 615 20,948
Public Sector 3,499 3,128 3,766 1,246 1,556 269 211 571 14,242
Total Non-
Residential 9,352 8,914 7,922 2,222 4,603 585 414 1,186 35,190
Building
Total Building 18,523 22,323 17,624 4,807 11,266 1,308 858 2,239 78,930
Non-Residential Building Activity

10,000
9,000
8,000
7,000
6,000
A$m
5,000
4,000
3,000
2,000
1,000
0
2000-2001
2002-2003
2003-2004
1999-2000
2001-2002
2004-2005
2006-2007
2007-2008
2005-2006
2008-2009
2009-2010
VIC NSW QLD WA SA NT ACT TAS
Source: ABS 8755.0

Building Approvals for New Multi Unit* Residential Buildings
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
Unit Numbers
VIC 4,840 4,439 4,287 7,750 4,520 3,433 1,921 2,946 3,908 5,164 7,251
NSW 8,006 6,308 11,116 11,815 11,864 8,245 6,824 7,297 7,147 4,578 5,134
QLD 2,284 2,733 4,019 6,074 6,026 5,304 5,121 4,796 5,952 3,620 3,111
WA 919 617 283 768 1,083 1,424 873 1,914 2,861 875 1,000
ACT 120 351 560 740 1228 1107 236 328 680 597 763
NT 203 167 94 219 260 460 365 434 372 125 156
SA 216 282 89 544 198 349 657 144 610 288 73
TAS 45 0 0 0 34 0 38 0 0 0 0
Value (A$m)
VIC 850 921 1,016 1,891 1,089 794 425 907 1,065 1,411 1,637
NSW 1,271 1,083 1,777 2,231 2,277 1,859 1,650 1,886 1,872 1,145 1,386
QLD 337 414 796 1,380 1,565 1,569 1,467 1,341 2,223 1,564 739
WA 228 107 83 159 225 327 249 644 1,342 331 378
ACT 12 45 78 106 192 233 89 71 102 162 202
NT 31 35 12 32 54 108 120 151 127 70 39
SA 57 44 10 141 50 115 122 41 216 66 16
TAS 14 0 0 0 23 0 10 0 0 0 0
*4 storey or more apartments
Source: ABS 8731.0
14,000 3,000
12,000
2,500

10,000
Approval Value (A$m)

2,000
Unit Numbers
8,000
1,500
6,000
1,000
4,000
500
2,000
0 0
2000-2001
1999-2000
2001-2002
2004-2005
2009-2010
2002-2003
2003-2004
2005-2006
2006-2007
2007-2008
2008-2009
VIC (no.) NSW (no.) QLD (no.) WA (no.) VIC NSW QLD WA
Source: ABS 8731.0
|m)
Value of Engineering Work Done 2009–2010 (AS
NSW VIC QLD SA WA TAS NT ACT
Roads, Highways and Subdivisions 3,324 1,890 5,585 970 2,169 188 152 27
Bridges, Railways and Harbours 2,605 720 1,475 460 2,304 32 31 1
Electricity Generation, Transmission
3,421 1,705 2,701 1,080 2,590 385 25 83
and Pipelines
Water Storage and Supply, Sewerage and
1,897 2,223 1,964 1,180 1,055 148 53 189
Drainage
Telecommunications 1,327 1,217 563 200 286 66 98 81
Heavy Industry 2,576 1,204 6,535 490 14,528 61 704 0
Recreation and Other 976 592 705 320 1,301 84 104 23
Total 16,126 9,551 19,528 4,700 24,234 964 1,168 404
of which: for Public Sector 9,985 3,170 8,655 2,610 4,073 678 231 201
for Private Sector 6,141 6,380 10,873 2,090 20,161 286 937 203
Source: ABS 8762.0
Value of Engineering Work Done 2009–2010
16,000
14,000
12,000
10,000
A$m
8,000
6,000
4,000
2,000
0
NSW VIC QLD SA WA TAS NT ACT
Roads, Highways and Subdivisions Water Storage and Supply, Sewerage and Drainage
Electricity Generation, Transmission etc and Pipelines Heavy Industry
Telecommunications Recreation and Other
Bridges, Railways and Harbours
Source: ABS 8762.0

|m)
Engineering – Yearly (AS
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
ACT 377 278 267 317 308 301 313 307 370 365 317
NSW 8,985 8,620 7,709 8,647 10,188 11,483 12,302 11,444 12,342 16,469 17,128
NT 400 235 1,688 1,790 2,126 2,137 2,216 1,813 1,280 2,614 1,201
QLD 7,734 6,811 6,560 7,656 7,353 8,892 11,408 13,735 16,787 20,640 20,160
SA 2,076 1,580 1,947 2,375 2,314 2,446 2,152 2,707 2,601 3,592 4,984
TAS 405 405 684 529 679 787 1,031 940 837 1,011 1,052
VIC 4,869 4,375 4,500 5,487 6,253 7,126 8,518 7,625 7,324 8,300 9,972
WA 4,027 3,165 4,301 6,391 6,427 7,705 13,517 17,130 19,559 22,425 25,564
Total 28,888 25,483 27,662 33,234 35,725 40,951 51,495 55,700 61,100 75,416 80,512
Engineering construction includes: roads, highways and subdivisions; bridges, railways and harbours; heavy industry; electricity
generation, transmission and pipelines; water storage and supply; sewerage and drainage; telecommunications; recreation and other.
All data seasonally adjusted.
Source: ABS 8762.0
Engineering Activity
30,000
25,000
20,000

A$m
15,000
10,000
5,000
0
Dec-01
Jun-01
Dec-03
Dec-02
Dec-04
Dec-09
Jun-00
Dec-00
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Dec-06
Jun-07
Dec-07
Jun-08
Jun-09
Jun-10
Dec-05
Dec-08
NSW QLD SA VIC WA NT TAS ACT
Source: ABS 8762.0
Three: Construction Key Statistics - New Zealand
Waitomo Caves Visitor Centre, Waitomo, New Zealand

Three:
Construction
Key Statistics
New Zealand
Construction Output 18
Exchange Rates 18
Outlook for 2011 19
Construction Activity 20
Sector Activity 21
New Zealand Construction Output
The rate of construction activity contraction in New Zealand has begun to stabilise. Construction output
peaked in 2007-2008 at NZ$13.5 billion whereas 2009-2010 saw construction activity fall to NZ$10.7 billion.
Overall no particular sector has outperformed any other, with the exception of Education, which increased
annual investment by 16% and a further 21% in 2008-2009 and 2009-2010 respectively.
The absence of significant public sector stimulus targeted towards the construction industry is a
noticeable contrast to Australia.
Construction Activity (by Sector)
2007 – 2008 2008 – 2009 2009 – 2010
1.43bn 1.68bn 1.44bn

8.42bn 6.37bn 6.10bn
0.58bn
0.67bn 0.81bn
1.67bn
1.70bn 1.36bn
0.48bn
0.47bn
0.30bn
0.43bn 0.51bn 0.36bn
0.34bn 0.36bn
0.42bn
Residential Accommodation Hospitals & Nursing Homes Factories & Industrial

Commercial Education Miscellaneous
Source: Statistics New Zealand BAS 008AA
NZD Exchange Rates

1.20 120
1.00 100
USD, EUR, GBP, AUD
0.80 80
YEN
0.60 60
0.40 40
0.20 20
0.00 0
Jan-01
Jul-01
Jan-04
Jan-03
Jan-05
Jan-06
Jan-07
Jan-09
Jul-10
Jul-02
Jul-03
Jul-04
Jul-05
Jul-06
Jul-07
Jul-08
Jul-09
Jan-99
Jan-10
Jan-00
Jul-99
Jan-02
Jan-08
Jul-00
USD EUR GBP AUD YEN (right axis)

Source: Reserve Bank of New Zealand

New Zealand Outlook for 2011
Transitioning from 2010 to 2011 presents many uncertainties for the New Zealand construction industry.
Many economic indicators are predicting that the market is going to remain tight with very little growth
prospects for the next year and net migration inflow is half the level it was in September 2009.
Dwelling consents issued in the last 12 months are significantly down compared to the last five years. A
small rise in consents has been noted since the low point of July 2009, but the industry is still very much
constrained to low activity. Coupled with this is the recent disparity between the New Zealand and Australian
dollars. The Australian dollar remains very strong. However the New Zealand dollar, whilst maintaining
relativity with the US dollar, is losing considerable ground against the Australian dollar. Late September 2010
saw a 10 year low in the New Zealand - Australian cross rate which is impacting on local trade.
Other factors indicate positive signs for the construction industry. Commercial yields are up to the highest
level in four years and interest rates have remained low and relatively stable. 90 day bank yields in the
region of 2.5% have been constant for a long period of time. This has limited inflation which will ultimately
benefit the property and construction industry as and when the property market picks up.
The New Zealand economy returned to growth in the first half of 2010, albeit at a slower rate than most
commentators were predicting.
The Reserve Bank of New Zealand made two consecutive interest rate rises in June and July 2010 after
they reached a historical low of 2.5%. However the official cash rate level remains well below ‘neutral’
levels and is expected to remain so until there are more substantial signs of an economic recovery.
The New Zealand construction industry will benefit from changes that have recently been introduced
by the Minister of Building, regarding streamlining of the consent processes. The biggest effect will be
noticed in the domestic housing market however, it is thought that these changes will have minimal effect

on the non-residential construction market.
A degree of stability has been established in the finance markets. While there appears to be a perception
that banks are reluctant to lend money, this is not the case for quality projects. We are noticing significant
activity within markets related to the buying, selling and upgrading of existing commercial properties.
In November 2010, six local authorities in Auckland combined to become one Council. It is expected that
the amalgamation of these Councils will produce streamlining of decisions and a consistent approach to
issues in relation to Resource Consents and Building Consents. A logical outcome will be a speedier and
more cost effective service. The key deliverable will be to have a consistent approach across all aspects
of the consenting process, across the entire region.
In our experience, the property market in New Zealand takes four years to recover from a severe
downturn. This was evident after the 1987 downturn. Based on this experience we hope 2011 is the year
that the market recovers.
New Zealand Construction Activity
|m)
New Zealand Building Work Put In Place (NZS
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
Residential Buildings
New Dwellings 3,895 3,159 3,447 4,707 5,843 6,320 6,162 6,638 7,001 5,004 4,745
Alterations/Additions & Outbuildings 750 673 753 884 1,075 1,056 1,262 1,341 1,424 1,370 1,357
Total Residential Buildings 4,645 3,832 4,200 5,591 6,918 7,376 7,424 7,979 8,425 6,374 6,102
Non-Residential Buildings
Hotels and Boarding Houses 282 221 242 236 352 647 852 642 430 416 360
Hospitals and Nursing Homes 297 280 259 354 324 294 350 427 468 342 357
Factories and Industrial Buildings 351 335 451 380 490 484 512 423 484 505 296
Commercial Buildings 848 889 867 841 998 1,393 1,628 1,460 1,673 1,702 1,358
Education Buildings 349 420 390 493 556 537 597 523 578 668 805
Miscellaneous Buildings 673 715 918 894 890 1,197 1,262 1,470 1,433 1,680 1,442
Total Non-Residential Buildings 2,800 2,861 3,128 3,199 3,611 4,554 5,202 4,946 5,067 5,314 4,618
Total All Buildings 7,444 6,692 7,326 8,789 10,528 11,930 12,625 12,924 13,491 11,687 10,721
Source: Statistics New Zealand BAS 008AA
New Zealand Building Work Put In Place

9,000
8,000
7,000
6,000
5,000
NZ$m
4,000
3,000
2,000
1,000
0
2001
1991
1990
1992
1993
1994
1996
1997
1999
2000
2003
2005
2007
1995
1998
2002
2004
2006
2008
2009
2010
Total Residential Buildings Total Non-Residential Buildings
Source: Statistics of New Zealand BAS 008AA

New Zealand Sector Activity
Residential
There has been a slight rise in residential consent numbers since mid-2009, including an upturn in the
number of apartments planned. Despite this, the industry is still very much constrained to low activity.
The level of alteration and renovation work put in place has remained steady with only a 5% drop in
activity between 2008 and 2010. This compares to the more significant drop of 32% in the construction of
new residential dwellings.
Challenges faced by this sector include easing net migration levels this year – from an average net
migration inflow of 1,800 per month in 2009, to a low of 140 in June 2010.
In the longer term the residential sector is expected to benefit from the merging of Auckland local
authorities into one ‘Super City’ in November 2010. This is expected to help simplify the Resource
Consents and Building Consents processes for the industry.
Commercial and Industrial
In Davis Langdon’s inaugural New Zealand Construction Sentiment Monitor (September 2010), 83% of
respondents nominated the Office sector as the least likely to contribute to growth in the next 12 months.
Participants were more optimistic about refurbishing work, with 71% identifying it as most likely to grow.
While consents for the non-residential sector remain flat, the Canterbury earthquake recovery works will
require considerable effort from the government, consultants and the construction industry in general.
Although there is demand-side uplift for industries in New Zealand exporting to stronger Australian and
Asian economies, these gains are being eroded by the strength of the Australian dollar versus the New
Zealand dollar. Once solid demand begins to rise, the construction industry is still faced with the hurdle of
financing projects.

Education
One sector to increase activity levels during the downturn was the Education sector due to the ongoing
upgrade of New Zealand’s education buildings. While there are few large projects, the majority of these
projects have been relatively small in size and scale which has provided a steady workflow for some
contractors. Steady rises in consents data also points to further planned activity in this area in the short term.
Hotels/Hospitality
Tourism is generally considered one of New Zealand’s largest earners of export dollars. However, after the
Canterbury region earthquake, there are concerns that overblown media reports of the damage caused may
affect tourism numbers in the short-term, although the Rugby World Cup in 2011 should make up for any
drop in annualised visitor numbers, with more than 70,000 overseas visitors expected to attend.
Sport and Recreation
As part of the preparations for hosting the Rugby World Cup, several sporting infrastructure facilities have
been upgraded recently. The only new facility will be a stadium in Dunedin to replace the existing venue,
with construction continuing through 2010. The existing facilities at Lancaster Park, Christchurch, Eden
Park and Auckland, are also being upgraded with new stands. This construction activity is reflected in the
number of social and cultural building consents – it was one of the only categories to increase in value in
the year to June 2010 when compared to the previous two years.
Source: Davis Langdon Construction Sentiment Monitor NZ, Statistics New Zealand
Four: Cost Data and Market Data
Port of Brisbane HQ, Brisbane, Queensland

Four:
Cost Data and

Market Data
International Building Costs 24
International Building Cost
Comparisons 25
Australasian Building Costs:
– Commercial 26
– Industrial 30
– Residential 32
– Retail 35
– Tourism 36
– Sports and Recreation 37
– Health and Aged Care 38
– Education 40
Major Rates for Australia and
New Zealand 42 Four: Cost Data and Market Data
Australian Labour
Material Ratios 43
International Building Costs
San Francisco
Johannesburg
Kuala Lumpur
Los Angeles
Hong Kong
Abu Dhabi
Singapore
New York
Auckland
Bangkok
Bahrain
Sydney
London
Beijing
Manila
Doha
US$/m2
Residential
Average Multi 2,130 1,380 1,325 1,360 1,370 1,670 480 1,475 440 790 770 1,070 3,450 3,550 3,700 2,010-2,890
Unit High Rise
Luxury Unit 2,820 1,730 1,650 1,900 1,900 2,050 655 2,450 1,020 995 1,082 1,600 4,000 4,200 4,200 2,730-3,780
High Rise
Individual 2,970 2,420 2,100 2,060 1,800 3,200 655 2,125# 915 1,090 900 1,300 3,400 3,500 3,800 3,050-4,660
Prestige
Houses
Commercial/Retail
Average 2,380 1,240 1,200 1,500 1,780 1,930 760 1,835 715 785 700 1,140 3,700 3,900 4,000 2,490-3,130
Standard
Offices High
Rise
Prestige 2,550 1,660 1,325 1,650 2,000 2,430 1,070 2,050^ 1,050 1,020 915 1,400 4,200 4,400 4,500 2,970-4,020
Offices
High Rise
Major 1,680 970 1,465 1,565 1,395 2,445 1,090 2,195 870 890 870 1,000 2,800 3,100 3,200 1,570-2,010
Shopping
Centre (CBD)
Industrial
Light Duty 530 415 660 660 890 1,066 N/A 935 420 400 560 410 1,200 1,400 1,200 675-860
Factory
Heavy Duty 610 520 740 880 990 1,163 N/A 1,155 496 445 910 460 1,600 1,800 1,900 1,110-1,285
Factory
Hotel
3 Star Budget 2,060 1,865 1,920 1,910 2,055 2,440 1,005 2,270* 1,460 1,165 1,275 1,900 2,100 2,200 2,250 1,485-1,845
5 Star Luxury 3,160 2,420 2,700 3,130 3,250 3,105 1,650 3,060* 2,130 1,500 1,800 2,800 4,500 4,600 4,700 2,570-3,530
Resort Style 2,810 1,860 3,300 3,410 3,560 N/A N/A 3,060* 1,270 1,210 2,110 2,150 4,500 4,600 N/A N/A
Other
Multi Storey 645 330 660 800 655 870 395 645 270 435 325 400 850 880 900 400-725
Car Park
District 2,660 2,490 2,500 3,290 3,425 2,890 990 N/A 940 1,210 N/A 1,230 6,900 6,900 6,000 2,490-3,130
Hospital
Primary & 2,040 1,310 1,630 2,330 1,100 1,330 530 930 275 735 N/A 700 3,000 3,200 3,600 1,850-2,810
Secondary
Schools
Exchange AUD NZD BHD AED QAR HKD RMB SGD MYR PHP THB ZAR USD USD USD GBP
Rates (Avg.
2nd Qtr. 2010)
US$1 = 1.19 1.46 0.38 3.67 3.67 7.78 6.78 1.40 3.23 46.50 32.42 7.6 1 1 1 0.67
#
Rate includes parking and minimal external works
^ Rate includes raised flooring and ceiling to tenanted areas
* Rate includes FF&E
Prices exclude land, site works, professional fees, tenant fit-out and equipment
Exchange rates as of July 2010
Source: Davis Langdon Research

US$/m² US$/m² US$/m²
500
500
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
1,000
500
1,500
2,500
3,000
3,500
1,500
2,500
3,000
3,500
4,000
1,000
2,000
1,000
2,000
Hotels
Manila Bangkok Kuala Lumpur
Beijing Kuala Lumpur Beijing
Bangkok Manila Bangkok
Kuala Lumpur Auckland Manila
Auckland Johannesburg Johannesburg
5 Star Luxury
3 Star Budget
Bahrain Beijing Bahrain

Johannesburg Doha Abu Dhabi
London Bahrain Doha
Singapore Abu Dhabi Auckland
Hong Kong Sydney Singapore
Average Multi Unit High-Rise
Major Shopping Centre (CBD)

Abu Dhabi London Hong Kong
Sydney Singapore Sydney
Doha Hong Kong London
Los Angeles
Los Angeles Los Angeles
San Francisco San Francisco
San Francisco
New York
New York New York
US$/m² US$/m² US$/m²

International Building Cost Comparisons
1,000
1,200
1,600
2,000
1,000
1,400
1,800
2,000
4,000
5,000
3,000
200
400
600
800
0
3,000
5,000
6,000
7,000
8,000
1,000
2,000
4,000
Manila Bangkok
Industrial
Kuala Lumpur
Johannesburg Kuala Lumpur
Commercial
Beijing
Auckland Beijing
Manila
Kuala Lumpur Manila
District Hospital
Johannesburg Johannesburg
Sydney
Bahrain Auckland
Bangkok
Light Duty Factory

Bahrain
Heavy Duty Factory

Auckland
Bahrain
Abu Dhabi Sydney
Abu Dhabi
Prestige Offices High Rise
Doha London
London
Singapore Hong Kong
Doha
Hong Kong
Average Standard Offices High Rise
Abu Dhabi
Singapore
Sydney Doha
Hong Kong London New York
Los Angeles Los Angeles Los Angeles
New York San Francisco San Francisco
San Francisco New York
25
Australasian Building Costs
Commercial Construction
A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Canberra
Auckland
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Building Type
Australasian Overall Average Standard
Building Rates* Offices
Low Rise 2,160 2,120 2,010 2,160 2,530 2,120 2,200 2,400 2,170 2,390 1,600 1,600 1,600
Medium Rise 2,540 2,480 2,360 2,530 2,970 2,490 2,580 2,800 2,540 2,800 1,800 1,850 1,850
High Rise 2,930 2,860 2,720 2,920 3,420 2,870 2,980 3,000 2,930 3,230 1,950 2,100 2,100
High Standard 3,270 3,200 3,040 3,260 3,820 3,210 3,330 3,500 3,280 3,610 2,250 2,300 2,300
Offices
Engineering Average Standard
Services Offices
(Mechanical) Low Rise 235 230 220 235 275 230 240 255 235 260 220 270 270
Medium Rise 315 310 290 315 370 310 320 320 315 350 300 300 270
High Rise 345 335 320 345 400 335 350 400 345 380 325 340 320
High Standard 415 405 385 410 485 405 420 550 415 455 400 400 400
Offices
Services Offices
(Electrical) Low Rise 140 135 130 135 160 135 140 140 140 150 130 130 130
Medium Rise 165 165 155 165 195 165 170 180 165 185 150 150 150
High Rise 215 210 200 215 255 210 220 220 215 240 160 160 160
High Standard 255 250 235 255 300 250 260 270 255 285 225 250 250
Offices
Services Offices
(Fire) Low Rise 20 19 18 20 23 19 20 20 20 22 15 20 27
Medium Rise 64 63 59 64 75 63 65 64 64 71 50 50 77
High Rise 64 63 59 64 75 63 65 70 64 71 60 60 68
High Standard 84 82 78 83 98 82 85 83 84 92 60 60 85
Offices
*Inclusive of builders preliminaries and profit but exclusive of site works, external services, land and interest costs
Mechanical – Rates are for typical base building (excluding fit-out) mechanical services commensurate with the standard of building indicated, including as
appropriate, statutory essential mechanical services
Electrical – Rates are for typical base building (excluding fit-out) electrical services commensurate with the standard of building indicated, including light and power,
statutory essential services and where appropriate, communications, security and MATV back bone systems
Fire – Rates are for statutory base building (excluding fit-out) fire services including, as appropriate, hydrants, hose reels, alarms and/or sprinklers
Low Rise: Less than 3 storeys
Medium Rise: 3-10 storeys
High Rise: 10+ storeys
All rates generally relate to a building achieving a 4 green star rating and a 4.5 NABERS energy base building rating. In broad terms increases of 5-10% would be
applicable for achieving 5 Star Green Star and 6 Star Green Star respectively

Commercial Commentary
New development in the commercial property market was hit hard by the economic downturn but the
challenges faced in Australia were not nearly as extreme as in other parts of the world.
There are promising signs for growth in the sector with vacancy rates and commercial values stabilising
in some capital cities. Incentives applied to office leases have also begun to unwind, raising net effective
rents, although net face rents remained relatively stable.
Tight lending combined with lower valuations is making it difficult to get developments off the ground,
although specific projects with solid pre-commitment still have proceeded while speculative development
remains practically non-existent. In the meantime, rising levels of existing building stock have undergone
refurbishment in order to uplift the value of the assets and attract future prospective tenants at higher
rental rates while also improving the environmental performance of the buildings.
Nationally, demand for office space is showing signs of improvement. According to the Property Council’s
2
Office Market Report, Australia’s office market recorded net absorption of 332,922m in the first half of
2
2010 compared to the negative net absorption of -159,661m in the same period of 2009.
Even though demand is strengthening and leading to promising absorption rates in several CBD markets,
Australia’s CBD office market vacancy rate rose from 8.0% to 8.9% in the first half of 2010.
As white collar employment continues to grow, demand for new stock will remain strong and further
developments will be required. Looking forward, the short term forecast is for steady growth in new office
projects however the development lag means this will not reach new supply for 2-3 years.
Construction Forecast – Offices

10,000
Forecast
8,000
6,000

A$m
4,000
2,000
0
2000-2001
2010-2011
2006-2007
2012-2013
2013-2014
2008-2009
2009-2010
2011-2012
2015-2016
2003-2004
2007-2008
2017-2018
2002-2003
2004-2005
2005-2006
2016-2017
2001-2002
2014-2015
Source: Construction Forecasting Council 2010
Davis Langdon Tender Price Index – Commercial
Melbourne
Townsville
Canberra
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Date
2005 1st Qtr 146 159 137 149 146 160 148 163 167
2nd Qtr 147 162 141 152 148 160 152 166 169
3rd Qtr 150 164 143 153 150 159 155 168 172
4th Qtr 152 166 144 154 152 160 158 169 172
2006 1st Qtr 156 169 146 157 154 165 165 170 178
2nd Qtr 158 172 147 158 156 169 171 172 182
3rd Qtr 159 174 149 160 158 172 178 174 183
4th Qtr 164 176 160 162 161 175 180 175 184
2007 1st Qtr 168 178 165 164 164 179 186 176 184
2nd Qtr 169 180 167 167 168 181 189 178 186
3rd Qtr 172 182 171 171 171 185 194 180 191
4th Qtr 176 183 172 174 173 188 200 181 192
2008 1st Qtr 180 187 175 180 179 178 191 206 182 201
2nd Qtr 185 191 178 183 191 180 194 211 185 211
3rd Qtr 184 191 180 187 194 181 195 215 189 213
4th Qtr 182 191 180 185 198 181 190 214 186 212
2009 1st Qtr 183 182 177 183 201 179 185 206 186 209
2nd Qtr 183 180 174 179 202 178 185 204 186 205
3rd Qtr 183 178 171 178 204 180 185 200 186 202
4th Qtr 184 176 170 179 207 182 182 196 186 201
2010 1st Qtr 184 176 168 180 209 185 182 197 186 200
2nd Qtr 184 177 168 182 212 187 184 176 187 200
3rd Qtr 185 178 168 184 215 187 186 176 187 200
4th Qtr 186 178 169 186 216 186 188 176 188 201
2011 1st Qtr 187 179 170 188 218 185 191 177 188 202
2nd Qtr 188 181 172 189 219 185 192 178 190 203
Grey areas indicate Forecast Indices. Davis Langdon prepares its Tender Price Index as a measure of price movement within the building industry for metropolitan
projects, as well as a reasonable comparison between cities. The index is compiled by pricing, on a quarterly basis, the same basket of work items typical for
construction projects, excluding GST.
220
Forecast
200
180
Index
160
140
120
Quarter
3rd
3rd
3rd
3rd
3rd
2nd
2nd
2nd
2nd
2nd
2nd
3rd
2nd
4th
4th
4th
4th
4th
4th
2009 1st
2011 1st
2005 1st
2008 1st
2010 1st
2006 1st
2007 1st
Year
Adelaide Brisbane Cairns Canberra Darwin Hobart Melbourne Perth Sydney Townsville

Australian Property Market – Commercial Overview
Melbourne CBD Sydney CBD
4,200,000 12 5,000,000 12
4,000,000 10 4,800,000 10
3,800,000
8 4,600,000 8
3,600,000
Vacancy Rate (%)
Vacancy Rate (%)

6 4,400,000
Total Stock (m2)
Total Stock (m2)

6
3,400,000
4 4,200,000 4
3,200,000
3,000,000 2 4,000,000 2
2,800,000 0 3,800,000 0
Jul-01
Jul-01
Jul-00
Jul-09
Jul-10
Jul-02
Jul-03
Jul-04
Jul-10
Jul-04
Jul-07
Jul-09
Jul-06
Jul-05
Jul-06
Jul-08
Jul-08
Jul-00
Jul-02
Jul-03
Jul-05
Jul-07
Vacancy Rent * Yields ** Vacancy Rent * Yields **
6.5 300 – 520 6.75 – 7.25 8.5 425 – 650 6.50 – 7.25
Canberra Brisbane CBD

2,200,000 16 2,200,000 12
14 2,100,000
2,000,000 10
12 2,000,000
10 8
1,800,000 1,900,000
Vacancy Rate (%)
Vacancy Rate (%)

8 1,800,000 6
Total Stock (m2)
Total Stock (m2)
1,600,000 6 1,700,000
4
4 1,600,000
1,400,000
2 2
1,500,000
1,200,000 0 1,400,000 0
Jul-01
Jul-01
Jul-10
Jul-00
Jul-02
Jul-03
Jul-04
Jul-05
Jul-06
Jul-07
Jul-08
Jul-09
Jul-10
Jul-02
Jul-09
Jul-00
Jul-03
Jul-04
Jul-05
Jul-06
Jul-07
Jul-08
13.6 N/A N/A 10.9 375 – 450 7.25 – 8.25
Adelaide Core Perth CBD

1,020,000 14 1,500,000 16
1,000,000 12 14
1,450,000
980,000 10 12
1,400,000 10 Four: Cost Data and Market Data
960,000 8
Vacancy Rate (%)
Vacancy Rate (%)
1,350,000 8
Total Stock (m2)
Total Stock (m2)
940,000 6
6
1,300,000
920,000 4 4
900,000 2 1,250,000
2
880,000 0 1,200,000 0
Jul-01
Jul-01
Jul-10
Jul-00
Jul-02
Jul-03
Jul-04
Jul-05
Jul-06
Jul-07
Jul-08
Jul-09
Jul-10
Jul-00
Jul-02
Jul-03
Jul-04
Jul-05
Jul-06
Jul-07
Jul-08
Jul-09

7.0 250 – 325 8.50 – 9.50 9.9 450 – 650 7.0 – 8.50
= Total stock (m2) as at June 2010

= Vacancy Rate (%) as at June 2010
* Rent = Prime Net Effective Rent (A$/m2) as at June 2010
** Yields = Prime Yields (%) as at June 2010 Source: Property Council of Australia; Knight Frank Research
Industrial Construction
A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Canberra
Auckland
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Building Type
Australasian Overall Industrial
Building Rates* Light Industrial - 640 625 595 635 745 625 650 635 640 705 550 650 650
Low Bay, Tilt-Up
Heavy Industrial - 785 770 730 785 920 770 800 785 790 870 700 750 750
High Bay, Tilt-Up
Attached Offices 2,070 2,020 1,920 2,060 2,420 2,020 2,100 2,250 2,070 2,280 1,400 1,500 1,500
Engineering Light Industrial 10 10 9 10 12 10 10 10 10 11 10 11 10
Services (Mechanical) Attached Offices 235 230 220 235 275 230 240 265 235 260 150 210 220
Services (Electrical) Attached Offices 142 140 132 142 166 140 146 142 142 158 130 124 118
Services (Fire) Attached Offices 17 16 16 17 20 16 17 17 17 18 25 25 25
Construction Forecast – Industrial

6,000
Forecast
5,000
4,000
A$m
3,000
2,000
1,000
0
2000-2001
2010-2011
2006-2007
2012-2013
2013-2014
2014-2015
2008-2009
2009-2010
2011-2012
2015-2016
2017-2018
2003-2004
2005-2006
2007-2008
2016-2017
2002-2003
2004-2005
2001-2002

Industrial Commentary
The industrial sector was one of the worst hit during the downturn and except for a few select locations
across the country, it is yet to show any solid indications of recovery. In some regions there is a threat of
oversupply and diminishing demand, while in other regions the pause in supply during the downturn is
leading to early signs of rental pressures over the medium term outlook.
The industry’s outlook remains cautious. Certain parts of the country are anticipating further buoyancy from the
mining sector, but until this transpires there is little impetus for supporting industrial development in those areas.
However, port volumes are rising, with further infrastructure works planned to keep pace with rising export
and import traffic. Total container activity for the year was up 3-6% in the nation’s largest ports, driven
by commodity exports and a strong Australian dollar boosting import activity. Major road additions and
upgrades have also been beneficial to the industrial sector.
The Construction Forecasting Council of Australia is expecting a gradual return to development activity
from 2010-11 onwards, as confidence in the sector improves.
Key Challenges
Excluding a few owner-occupiers such as retailers looking to expand their distribution spaces, there has
been very little development activity in the industrial sector. Speculative investment has been impeded by
feasibilities constrained by low rental returns and difficulties securing finance.
Developers are generally reliant on tenants’ pre-commitment in order to get financing for industrial
projects, although there have been several purchases of key land parcels which shows some confidence
may be returning to this sector.
The industrial market continues to experience competitive conditions. With low activity levels – in
industrial and other sectors – construction prices remain competitive, creating a very attractive
environment for developers who can construct at low capital cost and sell or lease into a market.
Industrial Market Overview
Prime Net Face Rents Prime Yields

($A/m2) (%)
Sydney Prime 100 – 165 7.75 – 8.75
Secondary 85 – 135 8.75 – 9.75
Business Space/Hi-Tech 175 – 225 7.75 – 8.50
Melbourne Prime 73 – 125 7.75 – 8.75
Secondary 50 – 90 9.50 – 11.00
Brisbane Prime 105 –115 8.25 – 9.00
Secondary 90 – 100 9.25 – 10.00
Adelaide Prime 75 – 130 8.00 – 8.85
Secondary 55 – 80 9.00 – 10.00
Perth Prime 110 – 120 7.75 – 8.50
Secondary 75 – 90 8.75 – 9.25
Source: Knight Frank Research as at June 2010
High-Rise Residential Construction
A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Canberra
Auckland
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Building Type
Australasian Overall Medium Quality
Building Rates* Multi Unit - 1,970 1,920 1,830 1,960 2,300 1,930 2,000 1,960 1,970 2,170 1,900 2,000 1,950
Low Rise
High Rise 2,660 2,600 2,470 2,650 3,100 2,600 2,700 2,650 2,660 2,930 2,150 2,250 2,250
High Quality
Low Rise 2,760 2,690 2,560 2,740 3,220 2,700 2,800 2,740 2,760 3,040 2,300 2,500 2,400
High Rise 3,000 2,930 2,780 2,990 3,510 2,940 3,050 2,990 3,000 3,320 3,250 3,300 3,000
Podium Car Parking 835 700 775 835 975 820 850 835 835 925 650 650 650
Basement Car 1,330 1,100 1,230 1,320 1,550 1,300 1,350 1,250 1,330 1,470 1,000 1,100 1,200
Parking
Engineering Medium Quality
Services Multi Unit - 78 76 74 78 92 78 80 78 78 86 106 106 106
(Mechanical) Low Rise
High Rise (A/C inc.) 215 210 200 215 255 210 220 215 215 240 225 225 225
High Quality
Low Rise (A/C inc.) 196 192 182 196 230 192 200 196 198 218 240 240 326
High Rise (A/C inc.) 285 280 265 285 335 280 290 285 285 315 300 300 325
Podium Car Parking N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 35 35 35
Basement Car 69 67 64 69 81 67 70 69 69 76 65 65 65
Parking
(Electrical) Low Rise
High Rise (A/C inc.) 120 115 110 120 140 115 120 120 120 130 130 130 130
High Quality
Low Rise (A/C inc.) 155 150 140 150 180 150 155 150 155 170 140 145 145
High Rise (A/C inc.) 185 185 175 185 220 185 190 185 185 205 165 180 180
Basement Car 44 43 41 44 52 43 45 44 44 49 35 40 40
Parking
(Fire) Low Rise
High Rise 64 63 59 64 75 63 65 64 64 71 60 60 65
High Quality
Low Rise (A/C inc.) 13 13 12 13 15 13 13 13 13 14 25 28 28
High Rise 64 63 59 64 75 63 65 70 64 71 65 65 67
Basement Car 49 48 46 49 57 48 50 49 49 54 55 55 72
Parking
Low Rise: Less than 3 storeys; Medium Rise: 3-10 storeys; High Rise: 10+ storeys
*Inclusive of builder’s preliminaries & profit but exclusive of site works, external services, land and interest costs

Residential Commentary
Australia’s residential sector has remained relatively resilient during the recent downturn compared to
other sectors of the construction industry. While there are notable discrepancies between certain markets,
for the most part residential building development has been ongoing, spurred on by the underlying
fundamentals of the sector.
With an existing shortfall in dwellings further exacerbated by above trend migration levels in recent years,
demand remained strong for residential accommodation. The Real Estate Institute of Australia reported
that the national median average house price for the June quarter 2010 was 16% higher compared to the
previous year, although this momentum is expected to cool off over the coming year. While there are less
first home buyers than last year when there were more government incentives and lower interest rates,
investors continue to be attracted by tight rental markets and the prospect for strong capital growth.
This trend is evident in the housing finance figures for owner-occupiers which have eased back to
pre-stimulus levels. Investors have gradually returned to the market through 2010 with investor finance
returning to levels last seen in early 2008. However, rising interest rates could stifle further activity in the
market to some extent as the Reserve Bank of Australia grapples with inflationary pressures and the
possible re-emergence of a two-speed economy.
Housing Finance Trend
20
18
16
14
12
A$bn
10
6 Four: Cost Data and Market Data

4
First Home Owners Grant Boost
2
0
Mar-09
Mar-08
Mar-10
Sep-07
Jun-07
Dec-08
Sep-09
Jun-08
Dec-09
Jun-09
Jun-10
Dec-07
Sep-08
Owner Occupiers Investors

Source: ABS 5609.0
Residential Drivers and Challenges
Population Growth
Population growth continues to be a key factor in the demand for housing in Australia. Even though net
migration rates softened in 2010, Australia’s average annual population growth over the last five years
was 387,000 per annum – a 57% rise on the previous five year average of 246,000, whereas the housing
supply side is not keeping up with this demand.
The National Housing Supply Council projections show that 3.2 million additional dwellings will be
required to meet underlying demand by 2030, based on net migration, fertility rates and household
formation trends. It estimates that the gap between demand and supply will grow to over 300,000
dwellings by 2014, and by 2030, the cumulative gap will be over 640,000 (based on assumptions of
medium growth in supply and demand).
Supply Constraints
The building industry continues to face numerous challenges in the supply of new dwellings. Many
developers experienced challenges in securing finance, with banks requiring higher levels of
pre-commitment and tighter loan to value ratios.
Increasing demand for sustainability initiatives and the impact of the new BCA Part J amendments have
added to the costs of construction. Planning hurdles also impacted the rate of housing supply, particularly
in established areas where higher density development is strongly advocated for. The density debate is
expected to gain prominence as industry and governments endeavour to make better use of established
urban areas.
Source: NHSC, ABS, REIA
Population Growth vs Dwellings

2.20
2.00
1.80
Deficit
Percent
1.60
1.40
1.20
1.00
2001
2005
2006
2007
2008
2009
1999
2000
2002
2003
2004
Australia Population Growth (annual) Australia New Dwellings Growth (annual)
Source: ABS 3101.0, ABS 4102.0

Retail Construction
A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Canberra
Auckland
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Building Type
Australasian Overall Retail
Building Rates* District Centre 1,760 1,720 1,630 1,750 2,060 1,730 1,790 1,750 1,760 1,950 1,350 1,400 1,400
Regional Centre 2,340 2,290 2,170 2,330 2,740 2,290 2,380 2,330 2,340 2,590 1,550 1,600 1,600
Strip Shopping 1,440 1,400 1,330 1,430 1,680 1,410 1,460 1,430 1,440 1,590 1,100 1,200 1,200
Engineering Services Local Shop. Centre 245 240 230 245 290 240 250 245 245 270 220 235 220
(Mechanical) (No Malls)
Regional Centre 295 290 275 295 345 290 300 295 295 325 260 295 280
Strip Shopping 178 174 164 176 206 174 180 176 178 196 220 230 220
(Electrical) (No Malls)
Regional Centre 124 120 114 122 144 120 126 122 124 136 140 140 156
Strip Shopping 89 87 82 88 103 87 90 88 89 98 100 100 100
(Fire) (No Malls)
Regional Centre 64 63 59 64 75 63 65 70 64 71 60 60 57
Strip Shopping 15 14 14 15 17 14 15 15 15 16 25 25 25
*See following page for footnote details. Source: Davis Langdon Research
Retail Commentary
The retail sector has not suffered as much as expected during the global financial crisis. Heavily
discounted sales, low interest rates and fewer job losses than expected have all buoyed the sector.
Although 2008-2009 and 2009-2010 saw very little new retail stock, projections for 2010-2011 are
increasingly positive. Construction value is expected to grow by 16%, equating to approximately A$5
billion in new retail construction projects.
Retail Overview
Prime Net Face Rents ($A/m2) Prime Yields (%)
Sydney Regional 1,500 – 2,000 6.00 – 7.00
Sub-Regional 750 – 950 7.25 – 8.25
Neighbourhood 500 – 625 7.50 – 8.50
Bulky Goods 200 – 300 8.00 – 9.25 Four: Cost Data and Market Data
Melbourne Regional 1,200 – 1,800 6.50 – 7.25
Sub-Regional 550 – 900 7.25 – 8.25
Neighbourhood 350 – 800 7.75 – 8.50
Bulky Goods 200 – 300 8.00 – 9.25
Brisbane Regional 950 – 1,400 6.50 – 7.50
Sub-Regional 675 – 900 7.75 – 8.75
Neighbourhood 375 – 750 7.50 – 9.00
Bulky Goods 175 – 270 8.00 – 9.50
Adelaide Regional 900 – 1,150 6.75 – 7.75
Sub-Regional 600 – 750 8.50 – 9.00
Neighbourhood 325 – 550 7.25 – 8.25
Bulky Goods 175 – 270 9.50 – 10.50
Perth Regional 1,000 – 1,500 6.75 – 7.25
Sub-Regional 600 – 900 7.50 – 8.25
Neighbourhood 350 – 650 8.00 – 8.50
Bulky Goods 190 – 235 8.00 – 9.00
Source: Knight Frank Research as at June 2010
Tourism Construction
A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Canberra
Auckland
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Building Type -
Perth
Hotel incl. FF&E
Australasian Overall Resort 3,440 3,370 3,200 3,430 4,020 3,370 3,500 3,430 3,450 3,800 2,700 2,750 2,700
Building Rates*
3 Star Budget 2,760 2,690 2,560 2,740 3,220 2,700 2,800 2,850 2,760 3,040 2,700 2,700 2,700
5 Star/Luxury 3,840 3,750 3,560 3,820 4,490 3,760 3,900 4,250 3,840 4,240 3,500 3,600 3,500
Suburban Motel 2,160 2,120 2,010 2,160 2,530 2,120 2,200 2,200 2,170 2,390 2,250 2,500 2,500
Engineering Services Resort 325 315 300 325 380 320 330 325 325 360 400 350 300
(Mechanical)
3 Star Budget 280 275 260 280 330 275 285 350 280 310 260 270 270
5 Star/Luxury 415 405 385 410 485 405 420 550 415 455 350 350 345
Suburban Motel 206 202 192 206 242 202 210 206 206 228 206 250 248
(Electrical)
3 Star Budget 190 190 180 190 225 190 195 200 190 210 270 270 270
5 Star/Luxury 265 260 245 265 310 260 270 265 265 295 300 300 320
Suburban Motel 138 134 128 138 162 134 140 138 138 152 136 136 190

(Fire)
3 Star Budget 74 72 68 74 86 72 76 74 74 82 56 56 72
5 Star/Luxury 94 92 86 94 110 92 96 94 94 104 66 66 72
Suburban Motel 20 19 18 20 23 19 20 20 20 22 15 15 17
Tourism Commentary
The tourism sector in Australia has seen steady growth from the international and domestic markets.
In response to the global financial crisis and against the backdrop of a 4.3% decline in global tourism,
Australia has outperformed the rest of the world and is now poised for future growth.
In 2009-2010 the value of building work completed on accommodation associated with tourism represented
around A$1.1 billion. Although this was a decline on the previous year, it is a likely reflection of the difficult
operating environment in the accommodation industry in 2009 combined with tighter credit conditions.

Tourism Commentary (cont.)
The top destinations attracting the majority of international visitor expenditure are Sydney, Melbourne,
the Gold Coast, Queensland and Perth. These destinations have seen government and private sector
investment commitments for maintenance and development of significant tourism venues to attract
visitors to existing well established destinations.
Construction Forecast – Tourism
1,600
Forecast
1,400
1,200
1,000
A$m
800
600
400
200
0
2010-2011
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2008-2009
2009-2010
2011-2012
Sports and Recreation Commentary

Australia maintains its position on the global stage as a home for sports events at an elite level with world
class sports precincts such as Sydney Olympic Park and Melbourne Olympic Park, which was recently
voted by Sports Business World as the best sporting precinct in the world. Four: Cost Data and Market Data
Federal and State Governments plus the private sector continue to invest heavily in sports infrastructure
for established events including the Australian Open and the Australian Grand Prix plus new bids for the
Gold Coast Commonwealth Games in 2018 and the FIFA World Cup in 2022.
Stadia, arenas, aquatic centres, sports halls, and multi-purpose venues are seen as playing an integral part
in providing a sense of community within society, activating areas for development as part of larger mixed
use developments and promoting a sustainable legacy for future generations.
Individual communities in Australia continue to benefit from a strong rate of investment in regional sporting
and community hubs, comprising aquatic centres, multi-purpose sports facilities and outdoor sports
precincts catering for the wide variety of sporting activities pursued by the public. This area of the sports
sector has benefited considerably from the Commonwealth Governments' regional and local community
infrastructure investment programmes.
Health and Aged Care Construction
A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Canberra
Auckland
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Building Type
Australasian Overall Health
Building Rates* District Medical 3,100 3,030 2,880 3,090 3,620 3,040 3,150 3,090 3,100 3,420 1,900 2,000 2,400
Centre
District Hospital 3,720 3,640 3,450 3,700 4,350 3,640 3,780 3,700 3,720 4,110 3,800 4,100 3,800
Nursing Home 2,560 2,500 2,370 2,550 2,990 2,510 2,600 2,800 2,560 2,830 2,700 2,800 2,700
(A/C inc.)
Engineering Services District Medical 355 345 330 355 415 345 360 355 355 390 300 290 280
(Mechanical) Centre
District Hospital 550 540 510 550 645 540 560 550 550 610 525 580 565
Nursing Home 255 250 235 255 300 250 260 255 255 285 220 260 260
(Electrical) Centre
Nursing Home 265 260 245 265 310 260 270 265 265 295 215 280 280
(Fire) Centre
Nursing Home 69 67 64 69 81 67 70 69 69 76 55 55 52
Health Commentary
The Health sector continues to be a major contributor to the construction industry, with planned future
expenditure brought forward to support the construction industry during the GFC. In 2009-2010 building
approvals for health projects leapt to A$5.8 billion – or 17% of total non-residential projects – compared to
just A$1.8 billion in 2008-2009.
The predicted increase in health construction activity over the next two years will be largely driven by
projects that were announced one to three years ago. This is witnessed by the unprecedentedly high volume
of building approvals during 2009-2010 that will support construction workloads over the coming years.
Demand for health facilities remains high as a result of strong population growth which is exacerbated by
the nation’s ageing population. Major investment is planned for all types of health facilities including mental
health, multi-use health centres, aged care and major tertiary facilities are planned for major investment.
Funding remains a constraint, particularly for states whose economies have suffered during the GFC.
However, most states have ambitious health capital works expenditure programmes over the next few
years in addition to the Federal Government’s commitment to reallocate funding to regional areas as
part of the 2010 federal election agreement. It is anticipated that the health sector’s contribution to the
construction industry will remain dominant for several years.

Aged Care Commentary
The number of people aged 70+ in Australia is rapidly increasing, causing an anticipated increase in
demand for aged care and independent living facilities. The population within this demographic will
increase by 1.1 million or 56% by 2020. Consequently, demand for residential Aged Care facility beds in
Australia is expected to increase from approximately 208,000 to 325,000 beds in this same period based
on demographics and existing penetration rates of 10.4%.
Senior living residents are also demanding more of their providers in terms of extra services, activities,
technology access and sustainable design. The challenge for the industry is delivering on these demands,
balanced with developing and operating viable facilities within an increasingly competitive landscape.
The need for traditional residential care will continue to grow, but with the majority of ageing Australians
preferring to stay in their homes as long as possible and continued government focus on less costly
non-residential care options such as home and community care, it is likely that options such as retirement
villages, apartments and affordable housing options will grow at a faster rate.
The retirement village industry is predicted to be one of the fastest growing property sectors, with
projected investment in construction in excess of A$40 billion over the next 15 years. Currently the portion
of the population living in retirement villages is 5.25% and could rise to 7.5%-8.0% in the next 15 years. It
is estimated that as many as 600 new villages will be required in addition to the existing 1,750 to support
this demand.
Source: ABS, Department of Health and Ageing, Davis Langdon Research
Construction Forecast – Health and Aged Care

5,000
Forecast
4,000
3,000
A$m

2,000
1,000
0
2000-2001
2010-2011
2006-2007
2013-2014
2012-2013
2008-2009
2009-2010
2011-2012
2015-2016
2017-2018
2003-2004
2005-2006
2007-2008
2002-2003
2004-2005
2016-2017
2001-2002
2014-2015
Education Construction
A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Canberra
Auckland
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Building Type
Australasian Overall Education
Building Rates*
Primary Schools 1,430 1,390 1,320 1,420 1,670 1,400 1,450 1,800 1,430 1,580 1,900 1,900 1,900
Secondary Schools 1,670 1,640 1,550 1,670 1,950 1,640 1,700 2,200 1,670 1,850 2,300 2,300 2,300
Engineering Services Primary and 118 116 110 118 138 116 120 120 118 130 66 48 176
(Mechanical) Secondary Schools
Primary and 215 210 200 215 255 210 220 230 215 240 220 255 255
Secondary Schools
(A/C inc.)
(Electrical) Secondary Schools
(Fire) Secondary Schools
Construction Forecast – Education
10,000
Forecast
8,000
6,000
A$m
4,000
2,000
0
2000-2001
2010-2011
2006-2007
2012-2013
2013-2014
2008-2009
2009-2010
2011-2012
2014-2015
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2007-2008
2015-2016
2016-2017
2017-2018

Education Commentary
In March 2009 the Federal Government announced the A$42 billion Nation Building Economic Stimulus
Plan of which $16.2 billion was allocated to improving facilities in all schools around the country as part
of the Building the Education Revolution (BER). The task faced by the industry to deliver 24,000 projects
across 9,400 schools with short lead times was undoubtedly a challenge the construction industry has
never faced before on a national scale.
During late 2008 non-residential construction activity levels declined sharply and fear of a prolonged
economic slowdown was at the time justified as global activity was expected to contract for the first time in
60 years. Domestically, the decline was evident in all sectors across state and territory markets. However
in 2010, demand has begun to rise and confidence has returned to the market.
The expedited BER projects ensured that workloads continued in lieu of diminished private sector
activity. The program stimulated non-residential construction activity levels through 2009-2010 and as a
consequence, planned activity levels were maintained close to the 10 year trend.
National Non-Residential Construction Activity

10
Stimulus
Boost
7
A$bn
3
Mar-04
Mar-05
Mar-06
Mar-09
Mar-10
Sep-03
Sep-04
Sep-05
Sep-07
Sep-08
Sep-09
Mar-07
Mar-08
Sep-06
Work Done (Excluding Stimulus Funding) Total Work Done (Including Stimulus Funding)
Source: ABS 8752.0, Davis Langdon Research
Major Rates for Australia and New Zealand
A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Canberra
Auckland
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Description Unit
Basement Excavation m³ 44 35 41 44 52 43 45 44 44 49 30 30 25
Foundation Excavation m³ 84 95 78 83 98 82 85 60 84 92 45 45 40
Imported Structural Fill m³ 94 80 86 94 110 92 96 26 94 104 70 70 60
Concrete in Pad Footing (25MPa) m³ 270 250 250 270 315 265 275 285 270 300 285 295 230
Concrete in Wall (32MPa) m³ 310 285 290 310 360 305 315 355 310 340 295 300 280
Concrete in Suspended Slab (32MPa) m³ 285 260 265 285 335 280 290 325 285 315 290 295 270
Formwork to Slab Soffit m² 130 110 120 125 150 125 130 145 130 140 135 140 140
Formwork to Side and Soffit of Beam m² 118 116 110 118 138 116 120 156 118 130 146 150 100
Precast Wall Panel Architectural with m² 405 395 375 400 470 395 410 400 405 445 300 320 280
Sand Blast Finish
Reinforcement in Beam t 2800 2300 2600 2790 3280 2750 2850 2500 2810 3100 2500 2800 2750
Structural Steel in Beam t 6400 6000 5930 6370 7470 6270 6500 6370 6400 7070 4000 4500 5500
Structural Steel in Truss t 6790 6300 6300 6760 7930 6650 6900 6760 6800 7500 5000 6000 6000
Aluminium Framed Window 6.5mm m² 610 595 565 610 715 600 620 610 610 675 400 490 450
Clear Glass
Aluminium Panel Curtain Wall System m² 875 855 815 870 1025 860 890 870 875 965 650 800 750
(including structural system)
Steel Stud Partition (framing) m² 37 37 35 37 44 37 38 42 37 41 35 40 35
Plasterboard 13mm thick to Partition m² 31 31 29 31 37 31 32 31 32 35 25 35 25
Suspended Mineral Fibre Ceiling Tile m² 47 46 44 47 55 46 48 50 47 52 40 45 40

Paint on Plasterboard Wall m² 10 11 9 10 12 10 10 10 10 11 10 11 12
Ceramic Tiles to Wall m² 138 134 128 138 162 134 140 138 138 152 120 130 120
Non Slip Vinyl to Wet Areas m² 68 66 62 68 80 66 70 68 68 76 76 76 80
Anti Static Carpet Tile to Office & m² 60 58 54 58 70 58 60 58 60 66 60 70 70

Admin Areas
Anti Static Broadloom Carpet to Office m² 58 56 52 56 66 56 58 56 58 64 40 46 50
& Admin Areas
Aluminium Framed Shopfront m² 570 560 530 570 665 560 580 570 570 630 400 400 475
Rates are subcontract rates inclusive of labour and material fixed in position complete and include competitive margins for overhead and profit; are for projects
constructed in the CBD area of average specification and of medium/high rise construction
The rates are net of GST
The rates are not intended to be used for tendering and/or the assessment of variations
The rates are net of preliminaries

Australian Labour Material Ratios
Labour Material Plant

Air Conditioning Specialist 35% 65% 0%
Bricklayer & Blocklayer 50% 50% 0%
Carpenter 45% 55% 0%
Carpet Layer 10% 90% 0%
Demolish 85% 5% 10%
Drainer 60% 40% 0%
Electrical 40% 60% 0%
Excavator 38% 10% 52%
Fire Service 45% 55% 0%
Formworker 70% 30% 0%
Glazier 20% 80% 0%
In Situ Concretor 25% 75% 0%
Joiner 15% 85% 0%
Lifts 25% 75% 0%
Mason 10% 90% 0%
Metalworker 25% 75% 0%
Painter 75% 25% 0%
Pavior 75% 25% 0%
Piler 20% 55% 25%
Plasterer 40% 60% 0%
Precast Concretor 20% 80% 0%
Preliminaries 40% 10% 50%
Reinforcement Fixer 20% 80% 0%
Roadworker & External Pavior 15% 85% 0%
Structural Steelwork 10% 90% 0%
Suspended Ceiling Fixer 40% 60% 0%
Tiler 55% 45% 0%
Five: Property Investment Information
Home HQ, Artarmon, New South Wales

Five:
Property
Investment
Information
Property Taxes 46
Due Diligence 48
Commercial Building
Disclosure 49
Make Good Works 49
Importance of
Tax Depreciation 50
Short Term Interest Rate
Movements 51
Efficiency Factors 51 Five: Property Investment Information
Property Taxes
Real Property Stamp Duty
Value Duty
Australian Capital Up to $100,000 $20 or $2 per $100 or part thereof
Territory $100,001–$200,000 $2,000+$3.50 per $100 in excess of $100,000
$200,001–$300,000 $5,500+$4 per $100 in excess of $200,000
$300,001–$500,000 $9,500+$5.50 per $100 in excess of $300,000
$500,001–$1,000,000 $20,500+$5.75 per $100 in excess of $500,000
Above $1,000,000 $49,250+$6.75 per $100in excess of $1,000,000
New South Wales Up to $14,000 $1.25 per $100 or part of dutiable value
$14,000–$30,000 $175+$1.50 per $100 in excess of $14,000
$30,000–$80,000 $415+$1.75 per $100 in excess of $30,000
$80,000–$300,000 $1,290+$3.50 per $100 in excess of $80,000
$300,000–$1,000,000 $8,990+$4.50 per $100 in excess of $300,000
Above $1,000,000 $40,490+$5.50 per $100 in excess of $1,000,000
Premium Property Duty >$3million $150,490+$7 for every $100 in excess of $3,000,000
Queensland Up to $5,000 Nil

$5,001–$75,000 $1.50 per $100 in excess of $5,000
$75,000–$540,000 $1,050+$3.50 per $100 in excess of $75,000
$540,000–$980,000 $17,325+$4.50 per $100 in excess of $540,000
Above $980,000 $37,125+$5.25 per $100 in excess of $980,000
South Australia Up to $12,000 $1 per $100 or part of $100

$12,000–$30,000 $120+$2 per $100 in excess of $12,000
$30,000–$50,000 $480+$3 per $100 in excess of $30,000
$50,000–$100,000 $1,080+$3.50 per $100 in excess of $50,000
$100,000–$200,000 $2,830+$4 per $100 in excess of $100,000
$200,000–$250,000 $6,830+$4.25 per $100 in excess of $200,000
$250,000–$300,000 $8,955+$4.75 per $100 in excess of $250,000
$300,000–$500,000 $11,330+$5 per $100 in excess of $300,000
Tasmania Up to $1,300 $20

$1,301–$10,000 $1.50 per $100 or part of $100
$10,001–$30,000 $150+$2 per $100 in excess of $10,000

$30,001–$75,000 $550+$2.50 per $100 in excess of $30,000
$75,001–$150,000 $1,675+$3 per $100 in excess of $75,000
$150,001–$225,000 $3,925+$3.50 per $100 in excess of $150,000
Above $225,000 $6,550+$4 per $100 in excess of $225,000
Victoria Up to $25,000 1.4%

$25,001–$130,000 $350+2.4% of above $25,000
$130,001–$440,000 $2,870+6% of above $130,000
$440,001–$550,000 $18,370+6% of above $440,000
$550,001–$960,000 $28,070+6% of above $550,000
Above $960,000 5.5% of dutiable value
Western Australia Up to $80,000 $1.90 per $100 or part of $100

$80,001–$100,000 $1,520+$2.85 per $100 in excess of $80,000
$100,001–$250,000 $2,090+$3.80 per $100 in excess of $100,000
$250,001–$500,000 $7,790+$4.75 per $100 in excess of $250,000
Northern Territory Up to $525,000 .065*V2+15V where V is Value/1000

Above $525,000 4.95% of total value

Land Taxes and Stamp Duties – as at September 2010
Taxable Land Value Land Tax

Australian Capital Residential:
Territory $0–$75,000 0.60%
$75,001–$150,000 0.89%
$150,001–$275,000 1.15%
$275,001 and above 1.40%
Commercial:
$0–$150,000 0.89%
$150,001–$275,000 1.25%
$275,001 and above 1.59%
New South Wales Up to $376,000 Nil

$376,000–$2,299,000 $100+1.6% for amount in excess of $376,000
$2,299,000 and above $100+2.0% for amount in excess of $2,299,000
+1.6% for amount in excess of $376,000
Queensland Companies & Trusts:
$0–$349,999 Nil
$350,000–$2,249,999 $1,450+1.7% of above $350,000
$2,250,000–$4,999,999 $37,500+1.5% of above $2,250,000
$5,000,000 and above $75,000+ 0.2% of above $5,000,000
Individuals:
$0–$599,999 Nil
$600,000–$999,999 $500+ 0.01% of above $600,000
$1,000,000–$2,999,999 $4,500+1.65% of above $1,000,000
$3,000,000–$4,999,999 $37,500+1.25% of above $3,000,000
$5,000,000 and above $62,500+1.75% of above $5,000,000
South Australia $0–$300,000 Nil

$300,001–$550,000 $0.50 for every $100 in excess of $300,000
$550,001–$800,000 $1,250+$1.65 for every $100 in excess of $550,000
$800,001–$1,000,000 $5,375+$2.40 for every $100 in excess of $800,000
Above $1,000,000 $10,175+$3.70 for every $100 in excess of $1,000,000
Tasmania Up to $24,999 Nil

$25,000–$349,999 $50+0.55% of above $25,000
$350,000–$749,999 $1,837.50+2% of above $350,000
$750,000 and above $9,837.50+2.5% of above $750,000
Victoria $0–$250,000 Nil

$250,000–$600,000 $275+0.2% of above $250,000
$600,000–$1,000,000 $975+0.5% of above $600,000
$1,000,000–$1,800,000 $2,975+0.8% of above $1,000,000
$1,800,000–$3,000,000 $9,375+1.3% of above $1,800,000
$3,000,000 and above $24,975+2.25% of above $3,000,000
Western Australia $0–$300,000 Nil

$300,000–$1,000,000 0.09 cents for each $1 in excess of $300,000
$1,000,000–$2,200,000 $630+0.47 cents for each $1 in excess of $1,000,000
$2,200,000–$5,500,000 $6,270+$1.22 for each $1 in excess of $2,200,000
$5,500,000–$11,000,000 $46,530+$1.46 for each $1 in excess of $5,500,000
$11,000,000 and above $126,830+$2.16 for each $1 in excess of $11,000,000
Northern Territory No Land Tax is payable in Northern Territory
Corporate governance
standards require objective and
comprehensive due diligence
for property acquisition
Due Diligence
Due diligence prior to a property purchase must be an integrated process that recognises that each of the
component parts impacts upon the other, the price of the asset and the holding and recurrent cost of the
property. Each part cannot be treated in isolation:
VALUATION PHYSICAL
• right price of acquisition • condition, performance and
• future capital expenditure maintenance of building fabric
provided for and services
• certainty of market and revenue • regulatory and essential
streams services compliance
• demographics • lettable areas title, easements
and encroachments
• environmental issues
• town planning
DUE
DILIGENCE
• maintenance
• capital expenditure
• outgoings
• insurance
• tax depreciation • lease conditions
• Green Star/NABERS energy • contracts of sale
performance • development agreements
• asset registers • agreements to lease
OTHER LEGAL
Accordingly, a useful due diligence audit for any prospective owner/investor must identify all of the issues
surrounding the inherent physical condition of the property as they relate to and/or impact upon future
capital expenditure, valuation, the lease or leases and the commercial legal documentation.
Usually the technical due diligence report includes a review of all matters affecting and impacting upon
building compliance, fabric, façade, structure, finishes and services as well as the environment together
with land, title and photographic surveys. Other items such as assessment of current green performance,
tax depreciation schedules, town planning and geological surveys may be included depending on the type
of property and the ownership strategy.

Building Energy Efficiency Disclosure Act 2010 (Commercial Building
Disclosure)
The Building Energy Efficiency Disclosure Bill was passed in June 2010 by the Australian Parliament,
enforcing Commercial Building Disclosure from November 2010. Vendors, landlords and sub-landlords
of buildings or parts of a building that have office areas in excess of 2,000m2 are required to disclose the
energy efficiency upon sale or lease of a whole building, tenancy or sublease space.
During the transitional period from 1 November 2010 to 31 October 2011, the only requirement will be
the disclosure of a valid NABERS Energy base or whole building rating. From 1 November 2011 all
prospective tenants or buyers must be provided with a Building Energy Efficiency Certificate (BEEC)
which is valid for one year that includes:
• a NABERS Energy rating
• an assessment of tenancy lighting in the area of the building that is being sold or leased
• suggestions on how to improve the energy efficiency of the building
These regulations will have significant ramifications for property owners. Building owners are strongly
advised to be fully prepared for the requirements of this scheme – comprehensive advice is vital in order
to reduce any future unexpected costs.
Make Good Works
Tenant Make Good obligations almost invariably lead to disputes between landlord and tenant at the end
of the lease term with consequent additional costs.
RICS Australia published a Best Practice Guidance Note and Protocol in relation to schedules of make
good works in late 2004. This was endorsed by the Property Council of Australia, to provide professional
objectivity and benchmarking and introducing best practice procedures for the make good process for the
benefit of both landlord and tenant.
The Schedule identifies alleged breaches of covenant within the lease, and cross references the relevant
lease clauses with the state of repair or breach and the cost to make good. This assists in highlighting the
landlord’s rights and provides clarity to the tenant regarding their lease obligations.
Types of Schedules of Make Good

Final Schedule
A Schedule of Make Good is usually served on the tenant no more than six months before lease expiry in
regarding to work requiring completion at expiry or earlier termination of the lease. The outcome can be either a
cash settlement or physical make good by the tenant. However, normally a cash settlement is agreed.
Interim Schedule
A Schedule of Make Good can be served during the lease term identifying items of disrepair where the
tenant has failed to comply with the repairing and maintenance covenants of the lease which require
remedy during the lease term. The outcome is physical make good and focuses the tenant on his/her
repair and maintenance obligations.
Schedule of Condition
Preparation of a Schedule of Condition prior to lease commencement is recommended to record the
condition of the premises, listing of landlord’s fixtures and other relevant information, by written and
photographic record, which should be agreed to by the landlord and tenant. It should be referenced in and
attached to the lease document. These recommended practices limit make good disputes at the end of
the lease. With more tenants engaging tenant representation, tenants and landlords are appreciating the
benefits of utilising the above processes.
Importance of Tax Depreciation
Taxation advantages offered in the form of depreciation allowances are particularly important to property
owners and portfolio managers alike. Significant benefits are available to owners of properties that
produce income, whether they are an owner-occupier of a commercial building or the owner of any
property available for lease. The financial benefits obtained in maximising depreciation are worthy of
specialist advice.
Divisions 40 and 43 of the Income Tax Assessment Act 1997 contain the laws governing depreciation.
Division 40 – Depreciable Assets
Division 40 of the Act deals with the allowances that relate to depreciable assets such as plant, equipment or
furnishings. These have a defined or definite effective life after which they are deemed to have a zero value.
Every year the Australian Tax Office updates the list of effective lives for hundreds of items. Special
provisions are made for plant in high use situations that may have a shorter life than usual, or items that
have a life terminated by a special event. For depreciation, the purchase cost is used as the base cost
or a portion where it is part of a larger acquisition. Specialist advice is often required to ascertain the true
apportionment of costs.
The table below illustrates a range of allowances that could be available under Division 40 for various
property types.
Type of Property Range of Division 40

Depreciation Assets Content
Residential 5 – 30%
Hotel 15 – 50%
CBD Office 30 – 55%
Office Fit-out 40 – 80%
Shopping Centre 30 – 60%
Industrial 5 – 45%
Division 43 – Capital Works or Structural Improvement
Division 43 of the Act relates to an allowance for capital works or structural improvement. This relates to
the structural envelope of a building or hardstandings, carparking, etc which are outside the footprint of
the building but within the site. This allowance is calculated on the original cost of construction, not the
cost of acquisition. The construction cost of older buildings is not always known and specialist advice
should be sought in this regard. It is not possible to estimate a range of values for allowances under
Division 43 as they are building and date-specific.

Short Term Interest Rate Movements
18.00
16.00
14.00
12.00
10.00
Percent
8.00
6.00
4.00
2.00
0.00
2010
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
1991
1990
1992
1993
1994
1995
1996
1997
1998
1999
Australia New Zealand* Japan United Kingdom United States Euro area
*Interbank lending rate used prior to the establishment of an official cash rate
Efficiency Factors
Efficiency Factors of Various Building Types (Net Useable Area/Gross Floor Area)
Efficiency Factor Range Net Useable Area

Offices CBD 82% – 89% Net Lettable Area
Suburban 90% – 95%
Hotels 5 Star 85% – 92% Includes accommodation, back of house,

3 Star 90% front of house and circulation
Resort 90% – 92%
Service Apartment 90%
Retail Regional 75% – 80% Net Lettable Area

Sub-Regional 80% – 85%
Neighbourhood 80% – 85%
Bulky Goods 85% – 95%
Home Centre 90%
Hospital Department Net/Department Gross 75% – 80%

Total Department Net/Gross Floor Area 80% – 85%
Nursing Home 85% Includes accommodation, support area

and circulation area
Apartments Low Rise 90% Includes apartments, circulation area

High Rise 75% – 85% and lobbies
Six: Emerging Trends
Sydney Town Hall, Sydney, New South Wales

Six:
Emerging Trends
Population Projections:
– Urban Planning 54
– Infrastructure Investment
and Labour Force 56
Disability Standards 58
Building Energy Efficiency
Disclosure Act 2010 60
Corporate Social Responsibility
Commitment 61
Population Projections
Urban Planning
How is planning tackling the housing shortage?
One of the key issues facing Australia is the need for housing in light of rapid population growth. Planning
can respond by targeting strategic areas for growth and streamlining approval processes. Development is
maximised in key areas and private and public housing is designed to complement the surrounding area.
Australian Population Projections
40
36
32
Million
28
24
20
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
High Medium Low
Source: ABS 3222
Commonwealth
The National Housing Supply Council monitors land supply and dwelling construction in relation to
projected demand. Several programs have been initiated to tackle housing affordability:
• the Building Better Regional Cities would invest $200 million to build up to 15,000 affordable homes
in regional cities. Councils would receive funding for infrastructure to support regional centres that are
experiencing positive employment and population growth
• the Social Housing Initiative, part of the Commonwealth’s Nation Building Economic Stimulus Plan, will
provide $5.2 billion over three years to 2012 for social housing
• the National Rental Affordability Scheme encourages private and non-profit housing developers to
provide affordable rental housing by offering tax credits or grants. It aims to increase the supply of
affordable rental dwellings by up to 50,000 by 2012
What is being done – state by state
Victoria
Melbourne’s population is predicted to reach over 7 million people by 2051. In August 2010, the Victorian
Parliament legislated to expand Melbourne’s urban growth boundary. Land will be re-zoned for urban
development to accommodate 284,000 of the 600,000 new homes required in Melbourne by 2030.
This means that approximately 316,000 dwellings will need to be built in Melbourne’s established areas
where public transport and other services are available – although issues of capacity will need to be
considered. Lessons have been learnt from the Nation Building Economic Stimulus Plan in terms of
facilitation of infill housing and it is hoped some of these initiatives may improve the efficiency of supply. For
example, consultants were appointed to certify planning applications with a review mechanism established at
state government level.

Population Projections (cont.)
New South Wales

New South Wales has a number of strategies designed to keep up with projected demand; the
Department of Planning is aiming for an additional 640,000 homes in Sydney by 2031.
Whilst the NSW planning system is relatively complex compared with other states, the government has
sought to increase housing through the Affordable Rental Housing State Environmental Planning Policy:
• encouraging partnerships between the private and community housing sector by offering density
bonuses for constructions that include a portion of affordable housing
• streamlining the development assessment process for affordable housing
• assisting in the provision of affordable housing near major employment areas
• allowing the development of boarding homes in all appropriate zones
• allowing the development of secondary dwellings (granny flats) in all residential zones
The NSW Housing Code also allows faster application assessments (10 days) for one or two storey
homes. These initiatives provide an incentive to supply both private and affordable housing by
streamlining approval timeframes and other bonuses.
Queensland
The Queensland Housing Affordability Strategy aims to get land and housing on the market quickly by
reducing the timelines and associated holding costs required for new housing. The strategy includes:
• establishment of an Urban Land Development Authority (ULDA)
• improving the planning and development assessment process
• increasing the supply of land ready for development
• regulating infrastructure charging plans across the state
• designating land for housing in regional areas of high demand
The ULDA improves housing affordability and streamlines the planning process in key urban development
areas, where the ULDA may assume the planning power of local government and some state agencies.
Currently, the government is working with the ULDA, local government and the development industry to
accelerate 42 greenfield areas in South-East Queensland. It is envisioned that these greenfield areas will
provide significant investment opportunities, with certain areas already zoned for residential development.
Western Australia
The Western Australia Planning Committee (WAPC) is the statutory authority for urban, rural and regional
land use, planning and land development. The WAPC and the Department of Planning anticipate the
construction of 9,796 dwellings in the Perth and Peel regions in 2010-2011, with more than 74,000
conditional residential lots currently approved across WA.
In an effort to keep up with the area’s growing population, the government launched its 'Directions 2031
and Beyond' program, which includes a target of 47% infill development. Housing growth targets for local
governments in the Perth and Peel regions will aim to encourage greater medium density development.
Additional reforms include the Development Assessment Panels which will streamline the development
approval process and the expansion of the online subdivision approvals system.
The Urban Development Program is also being prepared and will act as a land and infrastructure staging
strategy intended to deliver more effective land use and development in areas targeted as priority.
Infrastructure Investment and Labour Force
A ‘Big Australia’ will inevitably occur and the country needs to come to grips with infrastructure
expenditure in the trillions of dollars as the population heads towards 40 million.
As Australia’s population grows, so too does the need for infrastructure and support for the resources
sector. The high level of demand for skilled labour in this sector is a challenge for the future.
Davis Langdon’s research into projected infrastructure sector growth examined the aggregate
investment in road, rail, electricity generation and distribution, water storage and supply, sewerage,
telecommunications, ports and heavy industry.
The findings reveal that annualised work by 2050 could be as high as 350% of today’s annual investment.
This will be required in order to support the infrastructure demands of a population of almost 40 million
and a resilient resources boom.
The question of how big and how fast the population will grow by 2050 is subject to various supply
and demand scenarios, but either way the property and construction industry is destined for significant
investment in new and upgraded infrastructure and public services.
The growing need for transportation, utilities and distribution of imports and exports requires planning and
skills training to support these service areas.
Australia’s prosperous economy, shortages in labour force and high standards of living are all attractions
to foreigners looking to call Australia home, and the potential impact of a growing population on existing
infrastructure requires a highly efficient and viable growth strategy.
The Australian Bureau of Statistics (ABS) has released three estimates of Australia’s population by 2050
ranging from 30.2 million up to 39.6 million. In addition to the three population scenarios, Davis Langdon
investigated three infrastructure demand scenarios.
Infrastructure Investment per Capita

3,500
3,000
2,500
2,000
$/capita
1,500
1,000
500
0
1991
2001
1992
1993
1996
2005
1987
1988
1994
1989
1990
1995
1997
1998
1999
2000
2002
2003
2004
2006
2007
2008
2009
Low Projection Medium Projection High Projection

Values converted to 2010 dollars
Source: ABS, Davis Langdon Research

Low infrastructure investment and low population projections would see the existing construction
workforce grow by 170,000 (or 23%) by 2050, while high infrastructure investment and high population
projections – the more likely scenario – would result in an expansion of 2,187,000 jobs (or almost three
times more than current levels).
Infrastructure Labour Force Projections
Population Projection Scenarios
Medium
High
Low
Low Projection 907,000 1,021,000 1,191,000
Infrastructure Investment Projection
Medium Projection 1,568,000 1,764,000 2,058,000
Scenarios
High Projection 2,228,000 2,508,000 2,925,000

Current infrastructure labour force = 738,000 (ABS 6291.0)
Labour efficiency in the infrastructure sector has doubled over the past six years of the resources boom –
improving from 16 jobs per million dollars of work done to 8.9. But there are limitations on just how far this
efficiency factor can improve.
Currently, Australia’s infrastructure labour force equates to 3.3% of the total population but if demand for
resources projects, community-based services and infrastructure continues to follow recent trends, this
sector’s employment would represent up to 7% when compared to ABS population projections.
The impact of population growth will have a significant bearing on future economic prosperity as
Australia’s construction industry represents 7% of the National Gross Domestic Product.
High trade-based employment growth will be required to support the expanding resources industry, which
will unquestionably require significant levels of skilled migration in the future.
The resources boom has drawn trade-based resources to the minerals states of Western Australia and
Queensland in search of the higher remuneration on offer. Consequently, a skills shortage has been
developing in all states over recent years as ‘backfill’ trade employment in other states is left unfilled.
Early planning remains the key to sustaining future performance of the sector and preventing exacerbated
skills shortages and wage price escalation as Australia grows as a nation.
Disability Standards
Access to Premises – Buildings
The Australian Government’s Disability Discrimination Act 1992 (DDA) prohibits discrimination against
people with a disability or their associates in a range of areas including transport, education, employment,
accommodation and premises to which the public is entitled to enter or use.
To date, the DDA had not referenced a technical standard outlining detailed requirements for providing
access to premises. Previously a number of Australian Standards provided direction. The new Disability
(Access to Premises – Buildings) Standards will provide detailed guidance to ensure buildings are
accessible to all members of the community. The Disability Standards are intended to act as a codification
of requirements under the DDA.
In conjunction with developing these new Premises Standards, the Australian Building Codes Board has
also revised the Building Code of Australia (BCA). The changes will align building regulation with Federal
disability discrimination laws and also provide certainty for building owners, operators, designers and
certifiers in the provision of these requirements.
Premises Standards
The DDA sets out specific areas in which it prohibits a person being discriminated against on the grounds
of their disability. This includes access to or use of “any premises that the public, or a section of the public,
is entitled or allowed to enter or use”.
The DDA definition of “premises” is very broad and includes:
• existing buildings, including heritage buildings
• proposed or new buildings
• car parks
• open air sports venues
• pathways, public gardens and parks
The new Premises Standards will apply to all new buildings and refurbishments requiring building
certification. They apply to common areas of apartment blocks if they have dwellings available for
short term rent. However, all other private residences are exempt.
The Premises Standards will be mandatory from 1 May 2011 – aligned with BCA 2011 amendments. This
will allow time to establish processes for dealing with applications to vary the access requirements by
means of modifications or alternative solutions.
Recognised as a very significant issue for all in the property and construction industry, the standard
aims to make buildings as accessible as possible, while avoiding what the legislation describes as an
unjustifiable hardship on building owners and occupiers. These new standards will impact existing and
pre-purchase due diligence processes, where consideration must be made for changing space and
amenities requirements which may result in the loss of net lettable area.
Implementation and Concessions
All new buildings will need to meet the Premises Standards, as will all “New Parts” of existing buildings
which includes extended or modified parts of an existing building. “Affected Parts” will also require access
– defined as the principal entry of an existing building that contains a new part, as well as the path of
travel from the entry to the new part.

Disability Standards (cont.)
A number of concessions have been made to reduce the cost of implementation:

• a lessee concession – a lessee’s work to a new part of the building will not see the “affected parts”
requiring access
• a lift concession – an existing lift within a new or “affected part” that does not travel more than 12m will
not require modifications for increased floor space
• a toilet concession – existing accessible sanitary facilities and compartments within a new or “affected
part” of an existing building will not require modifications if they meet the superseded AS 1428.1 (2001)
Key Changes from the Current BCA
The Premises Standards will refine the provisions in the current BCA to ensure full compliance with the
DDA. The main changes will include:
• Class 1b and Class 2 buildings offering short term accommodation are to be incorporated
• AS 1428.1 (2009) will be the main referenced standard. Spatially this standard generally cites the ‘90th
percentile wheelchair footprint’ (that is a footprint which is intended to represent 90% of wheelchairs
available) where previously the ‘80th percentile’ was used. In practical terms this means larger
circulation spaces to doors, sanitary facilities, lifts, etc
• proportion of accessible sole-occupancy units to Class 1b, 3 and 9c buildings increased
• swimming pools with perimeters greater than 40m to be accessible
• accessible car parking must comply with AS 2890.6. This is a narrower space with the addition of a
shared space protected with a bollard at the roadway
• proportion of wheelchair spaces to be included in auditoria is increased
• stair platform lifts and vertical platform lifts are now referenced (i.e. AS 1735 parts 7, 8, 14, 15 and 16 lifts)
• sanitary facilities for people with ambulant disabilities will be required in all banks of toilets (in addition to
an accessible sanitary facility)
• accessible sanitary facilities to be provided on every storey, and where more than one bank of toilets is
provided, to not less than 50% of those banks
• various building elements within public transport facilities have a timetable of achieving access (100%
by 2022) by complying with a mixture of AS 1428 part 1 and 2 and the superseded versions of parts 1
and 4
• furniture and fit-out remains outside the scope of the access to premises standard and would continue
to be enforced via the complaint system under the DDA
Housing Initiatives
Even though sole occupancy units within residential buildings are effectively exempt from the Disability
(Access to Premises – Buildings) Standards, it is important to note that accessibility in Class 1 and 2
buildings is being regulated at a state and municipal level in many locations. Many Development Control
Plans in NSW require ‘adaptable’ sole occupancy units to be provided (i.e. in accordance with AS
4299); SA and ACT building regulations require a proportion of ‘accessible’ sole occupancy units (i.e. in
accordance with AS1428 parts 1 and 2), and Victoria is including a state-based revision to the BCA with a
number of requirements for accessibility in all Class 1 and a proportion of Class 2 buildings.
Building Energy Efficiency Disclosure Act 2010
Commercial Building Disclosure
In 2009, The Council of Australian Governments (COAG) agreed that a national scheme for reporting
energy efficiency in the commercial office market was required. This will have significant ramifications
for property owners. The Building Energy Efficiency Disclosure Bill was passed in June 2010, enforcing
Commercial Building Disclosure which began on 1 November 2010. As part of a broader National
Strategy on Energy Efficiency, COAG is also considering an expansion of the program to cover other
building types (such as hotels, shopping centres and hospitals) from 2012.
The scheme aims to create a strong market-based incentive for owners to improve their properties with
cost-effective energy efficient upgrades.
Components of the Scheme
Vendors, landlords and sub-landlords of buildings or parts of a building that have office areas in excess
2
of 2,000m are required to disclose the energy efficiency upon sale or lease of a whole building, tenancy
or sub-lease space. During the transitional period from 1 November 2010 to 31 October 2011, the only
requirement will be the disclosure of a valid NABERS Energy base or whole building rating.
From 1 November 2011, all prospective tenants or buyers must be provided with a Building Energy
Efficiency Certificate (BEEC) which is valid for one year and includes:
• a NABERS Energy rating
• an assessment of tenancy lighting in the area of the building that is being sold or leased
• suggestions on how to improve the energy efficiency of the building
The NABERS Office Energy rating tool will be used across all states, however it excludes the use of
Green Energy. The scheme is mandatory for corporations and the Crown, however, non-corporate entities
can participate voluntarily and new buildings will receive a two-year grace period. Civil penalties of up
to $110,000 for the first day and $11,000 for each subsequent day may be imposed by a Court for each
breach of a disclosure obligation.
What should you do?
The first NABERS Office Energy base building star rating assessment can take time and building owners
are strongly advised to be fully prepared for the requirements of this scheme. Building owners need to
ensure that:
• sub-metering is correctly installed as per the requirements of the NABERS Office Energy reporting
process
• current net lettable floor area surveys are undertaken based on the Property Council of Australia
Method of Measurement for Lettable Area March 1997
Davis Langdon has in-house NABERS Assessors with the capacity to provide NABERS assessments
and strategic advice to improve your building or tenancy, whilst also managing the cost implications. Early
preparation and comprehensive advice is vital in order to reduce any future unexpected costs.

Corporate Social Responsibility Commitment
Davis Langdon recognises its shared responsibility to make every effort to improve the sustainability
of the environment and surrounding communities. This responsibility requires the organisation and
employees to adjust the way we do business and go about our daily lives.
Our Sustainability Strategy outlines a staged approach to improving the environmental and social
performance of our Australian and New Zealand offices. The strategy further outlines Sustainability
Targets and a Communication Strategy to help increase employee awareness and engagement level.
Davis Langdon is a National Gold Corporate Donor of the Property Industry Foundation – the charity
of choice for the property and construction industry. Through Davis Langdon’s Corporate Social
Responsibility (CSR) Committee we have established a CSR agenda to develop a program providing
meaningful environmental and social sustainability actions. We participate in a variety of charity initiatives
and events including the support of a national charity of the year, organise employee volunteering events
and promote environmentally responsible business practices. Davis Langdon further supports needy
organisations through pro bono projects.
All Davis Langdon offices are committed to energy efficiency with several of our Australian offices proud
CitySwitch signatories. CitySwitch Green Office works with tenants to achieve improved office energy
efficiency and reduce greenhouse gas emissions associated with climate change.
Our Sydney office is also a signatory to the Department of Environment, Climate Change and Water NSW
Sustainability Advantage program and has been recognised as a Bronze Partner for its sustainability
initiatives. The Sustainability Advantage program is a business support service designed to help
organisations better understand and manage sustainability.
Seven: Sustainability
Karori Wildlife Sanctuary Visitors Centre, Wellington, New Zealand

Seven:
Sustainability
Sustainability 64
Sustainability Rating Tools 65
Capital Cost Impacts 67
Corporate Sustainability
Reporting 68
eBook – The Road to 'Green
Property' 69
Davis Langdon's Embodied
Carbon Metric (ECM) 70
Cost of Utilities 72
A growing public knowledge of
sustainable practices has changed
the face of 'business as usual'
Sustainability
The last few years have seen momentous change as governments, economies and businesses gear up for a
carbon constrained future.
The global economic downturn together with rising materials and energy costs has effectively forced
investment decisions that pursue both greater value and solutions with reduced ongoing maintenance,
waste, energy and water costs. There is also growing evidence that insurance companies now consider
properties with these credentials in a more favourable light when calculating premiums.
Benefits for building owners, by adopting sustainability initiatives, include:
• potentially higher occupancy rates
• higher future capital value
• reduced risk of obsolescence
• less need for refurbishment in the future
• ability to command higher lease rates
• higher demand from institutional investors
• lower operating costs
• mandatory for a growing number of tenants
• lower tenant turnover
• costs less to maintain and operate
As carbon trading and carbon related tax and energy price increases are rigorously debated, a carbon price
is inevitable but yet to be understood with confidence. A growing public knowledge of the impacts of climate
change is gathering momentum and this shift in public opinion will be a driving force of future policy.
New Zealand Emissions Trading Scheme
New Zealand is the first country outside of Europe to implement a nation-wide mandatory carbon pricing
scheme – an accomplishment yet to be achieved by the US, Canada, Japan and Australia despite
on-going debate. Although the New Zealand Emissions Trading Scheme will be phased in over time,
1 July 2010 marked a milestone day as power, industrial processes and transport fuels sectors began
mandatory reporting and trading of emissions.

The following sectors will be phased in over time:
• 1 January 2008 – Forestry
• 1 July 2010 – Stationary energy and industrial processes
• 1 July 2010 – Liquid fossil fuels and transport
• 1 January 2013 – Waste and all remaining sectors
• 1 January 2015 – Agriculture

Sustainability Rating Tools
The uptake of green rating tools has increased globally, especially in the UK and the US where their use
has become mandatory in many areas.
A common feature of the international, Australian Green Star and NABERS tools, is that they are strong
on environmental issues, but largely silent on social and economic issues – all three required for ‘triple
bottom line’ reporting.
Global Green
Environment
Green Star
BREEAM
CASBEE
Rating
LEED
Code
IPD
Criteria
Launch Date 1990 1998 2003 2004 2008 2008/09
Domain UK US Australia Japan Global Europe
Building Typologies Covered 14 10 9 Not Known 14+ Not Known
Planning No No No Yes No No
Design Yes Yes Yes Yes No Yes
Existing/Operation Yes Yes Yes Not Known Yes Yes
Green Star
The growth of the Green Building Council Australia’s Green Star tool has also been strong, both in terms
of certified projects (227 as of August 2010) and accredited professionals (6,118 as of August 2010). The
Green Star tools currently available are:
• Green Star – Education v1
• Green Star – Healthcare v1
• Green Star – Industrial v1
• Green Star – Multi Unit Residential v1
• Green Star – Office Design v3
• Green Star – Office As Built v3
• Green Star – Office Interiors v1.1
• Green Star – Retail Centre v1
The Green Star PILOT and Draft rating tools currently available are:
• Green Star – Office Existing Building EXTENDED PILOT
• Green Star – Convention Centre Design PILOT

• Green Star – Communities – DRAFT FRAMEWORK
• Green Star – Public Building PILOT
• Green Star – Custom PILOT
Likely Green Star Credits
1 2 3 4 5 6 7 8 9
Green Star Accredited Professional
Commissioning Clauses
4 Star Management
Building Tuning
Independent Commissioning Report
Building Users' Guide
Environmental Management
5 Star Waste Management
Ventilation Rates
Air Change Effectiveness
Carbon Dioxide Monitoring and Control
6 Star Daylight
Indoor Environmental Quality
Daylight Glare Control

High Frequency Ballasts
Electric Lighting Levels
Credits External Views
Available Thermal Comfort
Individual Comfort Control
Hazardous Materials
Internal Noise Levels
Volatile Organic Compounds
Formaldehyde Minimisation
Mould Prevention
Tenant Exhaust Riser
Greenhouse Gas Emissions
Energy Sub-metering
Energy
12
8
20
Lighting Power Density
Lighting Zoning
Peak Energy Demand Reduction
Provision of Car Parking
Transport
Fuel-Efficient Transport
Cyclist Facilities
Commuting Mass Transport
Occupant Amenity Water
Water Meters
Water
Landscape Irrigation
Heat Rejection Water
Fire System Water Consumption
Recycling Waste Storage
Building Reuse
Reused Materials
Shell and Core or Integrated Fitout
Materials
Concrete
Steel
PVC Minimisation
Sustainable Timber
Design for Disassembly
Dematerialisation
Topsoil
Land Use
Reuse of Land
Ecology
and
Reclaimed Contaminated Land

Change of Ecology Value

Refrigerant ODP
Refrigerant GWP
Refrigerant Leaks
Emissions
Watercourse Pollution
Discharge of Sewer
Light Pollution
Legionella
Insulant ODP
Innovation
Innovative Strategies and Technologies

Exceeding Green Star Benchmarks
Environmental Design Initiatives
Source: Green Building Council of Australia Technical Manual Green Star Office Design Version 3

Capital Cost Impacts
Green design strategies have become ‘the norm’ for higher quality buildings in Australia, especially for office
buildings as a result of the Property Council of Australia’s Guide to Office Building Quality requiring buildings
to meet a minimum of 4 Star Green Star and 4.5 Star NABERS rating. With this change, the perception of
‘extra’ cost has diminished.
Green Star Capital Cost Impacts
15%
10%
5%
0%
-5%
-10%
Office Design & As Built Office Interiors Healthcare Multi Unit Residential Retail
Business As Usual 4 Star 5 Star 6 Star

NABERS
The NABERS suite of assessment tools includes existing offices, homes, retail and hotels. With over
80% of Australia’s commercial office stock over 10 years of age, the importance of a tool to benchmark
operational performance is imperative.
NABERS is a performance-based rating system for the built environment that measures an existing building’s
overall operational performance from an environmental viewpoint. The scheme allows building owners
and tenants to benchmark their greenhouse performance by measuring the environmental impact of the
management and operation of the building and/or tenancy. The system provides a simple rating as an indication
of how well these environmental impacts are being managed. The ratings range from 1 (low) to 5 (high).
The introduction of mandatory Commercial Building Disclosure requires NABERS assessments as the
only method to measure building performance. Further details can be found in Chapter Six.
NABERS tools currently available for use or under development are listed below:
Offices
• NABERS Energy
• NABERS Water
• NABERS Waste
• NABERS Indoor Environment
• NABERS for Data Centres – Under development
• NABERS Commuter Transport – Under development
Homes, Retail and Hotels
• NABERS Energy
• NABERS Water
Corporate Sustainability Reporting
Since 2006, the Australian Institute of Company Directors has encouraged companies to become engaged
in Corporate Social Responsibility (CSR) practices relevant to their operations and to communicate with
shareholders and stakeholders about their contributions to improved sustainability performance.
Triple bottom line reporting, corporate social responsibility reporting and sustainability reporting are terms
synonymously used to express the practice of measuring, disclosing and being accountable to internal
and external stakeholders for economic, environmental and social impacts.
The Global Reporting Initiative
The Global Reporting Initiative (GRI) is a network-based organisation behind the world’s most commonly
used sustainability reporting framework. The GRI Reporting Framework includes principles and indicators
to measure and report on economic, environmental and social performance. Using the framework
ensures the highest degree of technical quality, credibility, and relevance. It further gives the opportunity
to benchmark organisational performance, demonstrate commitment to sustainable development and
compare performance measures over time, including:
• economic performance
• environmental performance indicators
• labour practices and decent work performance
• human rights performance
• society performance
• product responsibility performance
The basis of the framework is the sustainability reporting guidelines. Other components include the
sector supplements with industry sector specific indicators and the national annexes with country
specific information.
In accordance with the GRI Framework, users should declare the level to which they have applied the
GRI Reporting Framework. Three ‘Application Levels’, A, B and C are available, reflecting the coverage of
disclosure. In addition to the mandatory self declaration, report makers can choose to have a third party
provide an opinion on the self declaration and/or request the GRI to check the self-declaration. A+, B+
and C+ indicate the use of external assurance for the report.
Corporate Responsibility Reporting Guide
In an effort to encourage further corporate responsibility reporting by Australian property companies, the
Property Council of Australia has put together a guide to assist companies. Many property companies, small
and large, are yet to take on the challenge of providing greater transparency in their social, environmental
and economic practices. This guide will help property companies report their corporate responsibility
performance. A voluntary template is provided for corporate responsibility reporting that can be customised
to the needs of individual corporations.

eBook – The Road to ‘Green Property’
At the Green Cities 2010 conference, Davis Langdon launched the first edition of our eBook, The Road to
‘Green Property’, a guide to the many different and diverse aspects of achieving a greener built environment.
The eBook is updated regularly and remains a leading source for environmental topics in the property and
construction industry.
It features valuable information on topics such as:
• Green Star Rating Tools
• Emerging Issues
• Embodied Carbon Metric (ECM)
• Government Incentives and Regulations
• Green Leases
• Green Jobs
• Building Code of Australia Changes
• Retrofitting Office Buildings
• Water Savings from Green Star
• Energy Performance Contracting
• Environmentally Sustainable Development Technologies
• Triple Bottom Line Reporting
• Davis Langdon’s CSR Commitment
Visit Davis Langdon’s sustainability sector site at www.davislangdon.com.au/ANZ/Sectors/Sustainability

Make sure you keep the link to our publication – it will be updated often as new information becomes
available.
Davis Langdon’s Embodied Carbon Metric (ECM)
Studies indicate that the embodied energy in buildings may be equivalent to 11-23 years worth of
operational energy, depending on the complexity of the building.
The World Resources Institute has estimated the world total greenhouse gas emissions in 2005 at 44,153
MtCO2-e. The operation of buildings equates to 16.5% of these emissions, 10.2% for residential and 6.3%
for commercial buildings.
Davis Langdon believes operational as well as embodied greenhouse gas emissions in new projects will
continue to be one of the biggest challenges facing the property and construction industry. In order to
help clients make informed design decisions, around financial costs, operational efficiencies, Green Star
compliance, but also around the greenhouse gas legacy of buildings, we have developed the Embodied
Carbon Metric (ECM).
The ECM calculates the embodied greenhouse gas emissions of proposed developments, assisting
with material selection in the design process as well as the calculation of the overall carbon footprint of
the development.
Calculations are based on Australia-specific emission factors derived using a life cycle assessment
approach including emissions from the extraction of raw materials, primary energy sources, manufacture,
transport and on-site construction.
The ECM will help avoid higher than desired carbon content and additional costs by enabling selection of
construction materials in the design process that reduce a development’s overall carbon footprint. Direct
and indirect benefits include:
• the opportunity for environmental benefits through the enabling of material selection based on
embodied carbon intensity
• the opportunity to design a development with lower embodied carbon enabling a clear path to achieve
carbon neutrality
• improved brand reputation
• improved tenant and employee interest, engagement and awareness
• long term tenant and employee retention
In the same way that operating and maintenance costs need detailed consideration, it is important that the
day-one carbon impact of a project is understood and mitigated. A low-energy building may have a wind
turbine, photovoltaics and insulation, but unless there is an accurate assessment of how much carbon has
been emitted in construction, it is impossible to effectively calculate the building’s overall carbon impact.
The ECM enables this measurement, allowing developers and design consultants to use optimal
materials and practices to achieve a low carbon outcome.

ECM (cont.)
The ECM was used in 2009-2010 in the design stage for a development in NSW. A number of scenarios
and design options were modelled including a current industry typical practice scenario and an improved
performance scenario.
The current industry typical practice scenario resulted in an overall carbon footprint of close to 8,000
tonnes of CO2-e. This is the equivalent of driving a passenger car 715 laps around the equator, the
equivalent annual electricity use of 1,250 Australian households or 1,800 Olympic-sized swimming pools
filled with carbon dioxide.
By introducing a number of sustainability initiatives, for example cement replacement in concrete
using ground granulated blast furnace slag and the lowering of concrete strength where applicable,
an overall reduction in embodied greenhouse gas emissions of over 20% was achievable without
significant cost implications.
Material Input by Weight

Material Input by Weight
1.0%
1.0% 0.4%
4.0%
4.0%
2.0%
Concrete
88.0%
Glass
Tiles
Aluminium
Steel
Gravel and Sand
Other
ECM Contribution to Carbon Footprint

Contribution to Carbon Footprint
5.0% 1.0%
24.0%
Concrete
37.0% Glass
Tiles
Aluminium
Steel
Gravel and Sand
Other
6.0% 27.0%
1.0%
Cost of Utilities
Electricity and Gas

As we move forward, any energy cost increase will start to have a significant impact on alternative energy
solutions. The rush is already on to find a sustainable large scale alternative to coal. Globally, alternative
power options are being utilised to varying degrees, including wind, hydrogen, solar, clean coal, nuclear
and even geothermal power.
The following charts detail the cost and escalation rates forecast for the next 15 years. Although these
general rates of escalation are based on the introduction of the CPRS in 2011 – as originally planned by
the Federal Government – Davis Langdon estimates that the forecasts remain relevant with the exception
of the spike in 2011. Electricity generators will continue to future proof their assets by investing in carbon
mitigation research and development (at a cost to be passed onto consumers).
There is an awareness that, whilst leadership changes have created uncertainty about whether the CPRS
will remain shelved until 2015, some form of emissions trading or tax will occur within this decade.
Water
Irrespective of the chosen solution to Australia’s growing water crisis, the fact remains that water is likely
to get more expensive. A waterless future ultimately means: desalination, recycled water, third pipes
systems, grey water, black water, water tanks and associated cost increases.
The following charts detail the cost and escalation rates forecast for the next 15 years. Drought conditions
around Australia have placed many regions under water restrictions which has changed the consumption
habits of Australians. Consequently, a drop in demand has reduced profitability for water retailers which
has ultimately lead to higher prices to cover operational costs. In an effort to combat diminishing water
supplies, state governments are planning new infrastructure to meet demand, resulting in a higher than
trend expectation for water price escalation.

Retail Electricity Price Forecast
300 50%
250
40%
200
Reduced Estimate Minus CPRS 30%
$/MWh
150
Anticipated Carbon Price Impact 20%
100
10%
50
0 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Yearly Escalation Rate (RHS) Retail Electricity Price (LHS)

Source: Federal Treasury, Davis Langdon Research
Retail Water Price Forecast

4.00 14%
3.50 12%
3.00
10%
2.50
8%
2.00
$/kL
6%
1.50
4%
1.00
0.50 2%
0.00 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Yearly Escalation Rate (RHS) Retail Water Price (LHS)

Source: CSIRO
Retail Gas Price Forecast

18 14%
16
12%
14
10%
12
10 8%
$/GJ
8 6%
6
4%
4
2 2%
0 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Yearly Escalation Rate (RHS) Retail Gas Price (LHS)
Eight: Project Delivery, Strategies and Business Assurance
Queensland Academy of Creative Industries, Brisbane, Queensland

Eight:
Project Delivery,
Strategies and
Business Assurance
Life Cycle Cost Analysis 76
Engineering Services 77
Value Management Facilitation 78

Specifications 79
Design Management 81
Building Controls – Accreditation
Framework 82
Building Controls Legislation 84
Verification of Deliverables 87
Construction Industry
Contracts 87
Certification Services 88
DEGW 90
Life Cycle Cost Analysis
The Life Cycle Cost (LCC) assessment compares whole life costs of a building or any of its component
parts. Clients can establish the best value for money solution to meet their needs. LCC can also provide
useful comparisons with similar property types and benchmarking information for future acquisitions/
developments.
A good example of the importance of operational phase costs is hospitals where typically operating costs
over 2.4 years are approximately equal to the acquisition/construction phase costs.
An additional tool used in the evaluation process is Net Present Value (NPV). This is a technique that calculates
the discounted present day cost of all expenses associated with the asset during the evaluation period.
LCC and NPV analyses are of interest to many parties including:
• developers
• tenants
• property portfolio owners and operators
• government or government-owned and occupied buildings
• owners of privately owned and occupied buildings
• Public Private Partnership (PPP) proponents
• PPP facilities management providers
• facilities management providers

Life cycle cost analyses will become increasingly important in the new age of reduced emissions, greater
emphasis on sustainability and greater consciousness of the need to further reduce operational costs.
250,000
200,000
150,000
Payback period for Option 2 –

A$
approximately 10 years
100,000
Construction Phase
Operational Phase
50,000
Land Acquisition, Planning

and Design Phase
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Year
Option 1 Option 2

Engineering Services
Engineering services typically represent between 40-50% of a project’s building cost as new and
emerging technologies impact in the quest for sustainable buildings.
The focus on engineering services (mechanical, electrical, communications, fire and hydraulics) within
projects and the provision of the most appropriate design solution, not only in capital expenditure but also
in recurrent operational cost terms, has never been of greater importance.
With the primary goal of obtaining the best value outcomes for the client, the experienced, impartial view
of specialist engineering services cost advice (independent from the services engineer undertaking the
design) can be invaluable on many projects.
To assist in this process, we have identified the following key tips for projects striving for best value
engineering services solutions:
• establish early in the process what the client’s goals are for engineering services and agree what
constitutes best value
• seek active participation in any value management process from suitably qualified independent
engineering services cost planners – a fresh set of eyes can be particularly helpful, especially when
critical decisions on technical matters may be required
• challenge the basis of decisions, plant sizing etc – ensure you’re not paying for something that will
never be utilised

• set energy targets
• undertake comprehensive life cycle analysis – ensure the investment being made is the right one for the
life of the building
• listen to the client’s resident engineer (if one exists) as they have a depth of project knowledge that will be
invaluable to the team
• coordinate, coordinate, coordinate – ensure the architectural/structural and engineering services
documents are fully and comprehensively coordinated
• ensure detailed monitoring and assessment of engineering services costs throughout the project,
particularly post-contract variations
• undertake comprehensive commissioning of the plant and equipment – fine tune your buildings to make
sure they work as efficiently and cost effectively as possible
• ensure appropriate maintenance is undertaken at regular intervals
• undertake regular energy benchmarking
10%
Building Works
Engineering Services
Overlap Between Building/Engineering
40-50%
50-60%
Value Management Facilitation
Definition and Purpose

Value Management Facilitation involves a collaborative process between all stakeholders to achieve the
best project outcomes. One of the key principles in Value Management Facilitation is that value and value
for money are two distinct concepts. The value of an item or service is the benefit that its useful purpose
provides, relative to its importance to that organisation.
The term Value Management emerged with broader management applications, while still focusing on the
lowest cost to perform required functions and value for money from whole systems.
Principles and Practices of Value Management Facilitation
Value Management Facilitation is a strategy designed to determine what the project values are, what
they mean and whether they are sustainable to achieve best value. A primary objective is achieving the
maximum performance at the lowest possible cost. This involves facilitation of collaborative workshops
comprising of multiple disciplines to achieve the following:
Build shared knowledge and Create ideas

understanding • create a non-threatening, learning and collaborative
• distribute an agreed pre-workshop plan
• bring together a diverse and multi disciplined key
‹ environment
• reach agreement with the group on the what the
stakeholder group primary purpose of the entity is
Develop proposals
• develop proposals that represent those values ‹
Evaluate the ideas
‹
• collectively develop a value statement describing useful
purposes, benefits & important characteristics
• identify and agree on the criteria that will be used to
measure success
‹
Decisions and recommendations

• make recommendations and prepare action plans
• implement actions and report
Benefits of Value Management:

• improve the likelihood of successful project outcomes
• implement a clearly defined stakeholder framework
• extend stakeholder interests
• create a shared vision and purpose
• improve stakeholder relationships
• create project efficiencies
• increase knowledge and understanding
• achieve realistic/tangible targets
• realise value benefits

Specifications
Written specifications are but one document in a morass of information used by designers, contractors
and owners for procuring projects. On small scale projects they often don’t exist with specification
information conveyed on the drawings.
Specifications should be seen as the transmission of knowledge from one party to another. The golden
rule is not to produce unnecessary volumes; the larger the project the greater the need for clear, concise,
coordinated information flow between the parties involved.
The Importance of an ‘Onerous Task’
It is far cheaper for the client and the architect to change a line on a drawing or a clause in a specification
than to alter a manufactured product after delivery or installation. The best specifications are the most
accurate ones and rushed tender documents inevitably lead to additional costs, delays and disputes.
Specifications should be planned well in advance, reflect the architect’s requirements and be properly
integrated with other tender documents – all of which takes time to resolve.
Specifications are a key contract document, contractually more important than the drawings.
Done properly, the specification should:

REFLECT ESTABLISH
• design intent • quality of construction
• form of contract and • clarity in drawings
procurement • performance benchmarks
• program requirements
• regulatory standards
Specifications
• procedures and responsibilities

• compliance checks • clients from exposure claims
• links to other contract and cost increases
documents • architects design and interests
SUPPORT PROTECT
Specifications define quality and responsibility. Therefore, they need to be sufficiently flexible to reflect the
various forms of procurement and contract used in our industry today.
Specifications (cont.)
Format and Content
Australia does not have an independently recognised nation-wide trade category system and therefore
the options available are either to subscribe to a number of off-the-shelf specification products or to
develop a tailored system. Many architects have opted to produce their own systems using such products
as a starting point. Whichever system is selected, it is essential that consistency is maintained and
that database information is kept up to date by the purchase of regular updates or the use of dedicated
specification production teams.
Content considerations • how will materials and products noted on the drawings be cross-referenced to the
specification?
• what will the specification be used for?
• does the architect’s appointment contain stipulations to be reflected in the specifications?
• what are the requirements for submittals such as samples, prototypes, benchmarks,
testing etc?
• how are these submittals documented and agreed to ensure the best quality of products?
Specification production should start as early in the design process as possible and be developed
continuously, alongside the drawings. The biggest mistake a specification consultant and architect can
make is to leave it until the last minute, take a copy of a document written for a similar project and issue it
under the new project title.
By developing specifications throughout the design process, the designer has the best chance of
achieving a clear and unambiguous document.
Today and Beyond
Through strategic global alliances Davis Langdon aims to:

• provide training and assist educational institutions to establish specification writing as a core subject
• provide a forum to discuss specification related issues, encouraging clients, designers, suppliers
and contractors to understand each others’ issues and aspirations
• develop the full potential of online and other technologies, including Building Information Modelling
as a means of accessing and producing project specifications
• publish specifications linked to product libraries
• develop, with the support of the various institutions, an independent common arrangement of works
sectors (AUSCAWS) for the Australian construction industry
Specifications are a vital document. They are used at every stage of the project but become even more
important if a dispute arises. In such circumstances, specifications must contain clear and unambiguous
statements that resolve the argument. As such, the specification document should be referred to closely
throughout the construction process.
Proceed without it at your peril!

Design Management
Davis Langdon’s Specification Consultancy services has naturally progressed to a service of Design
Management (DM), which provides the next level of certainty. DM is a specialist service for the
management and monitoring of design teams. Our approach is based on a thorough understanding of the
design process through our experiences of working as part of design teams throughout the world.
The modern design process requires a new type of thinking where innovative design is backed up by
clear and flexible design management procedures. We understand the challenges faced by architects,
design teams and clients, as well as the level of support required to provide the necessary solutions.
Our service can vary from being a daily ‘hands-on’ supporting role to an abridged design health check
service. It can be applied to any design project, in any location worldwide.
Davis Langdon’s DM service:
• frees up the design team to concentrate solely on design tasks
• ensures timely key decisions are made to enable design progress
• provides outside help with a fresh outlook, sympathetic to the design team’s needs
• gives reassurance that issues vital to the success of the design are being managed
• includes the ability to draw upon a wide range of construction consultancy services and experience
within Davis Langdon when required

Proper management techniques achieve milestones and exceed expectations without stifling design
creativity. DM processes benefit the client and design team through:
• maximised design quality
• maximised cost savings
• minimised time delays
• minimised design risk
• aiding decision making
Davis Langdon DM employs a number of useful tools to manage the fluid nature of design. Visual tools
are more commonly used to reflect the design process including the example below of a ‘design web’ – a
graphical aid to represent the design team's program and progress.
Design Web – Progress Summary
Building Core
Fire
Engineering Floor Plans
0% 20% 40% 60% 80% 100% Target

Acoustics Stairs Actual
Building
Toilets
Sections
Lighting
Building Controls – Accreditation Framework
New South Wales

Category Work Scope Functions
Grade A1 • Unrestricted • Assess and issue relevant Construction Certification within

Building Surveyor Grade parameters
• Undertake inspections during construction
• Assess and issue Occupation Certificates within Grade
parameters
Grade A2 • Restricted to Class 1 and 10 buildings • Assess and issue relevant Construction Certification within
2
Building Surveyor • Class 2 to 9 with a floor area ≤ 2,000m or a Grade parameters
rise in storeys not more than 3 • Undertake inspections during construction
• Buildings of not more than 4 storeys • Assess and issue Occupation Certificates within Grade
comprising 1 storey of Class 7 or not more parameters
than 3 storeys of Class 2
Grade A3 • Restricted to Class 1 and 10 buildings • Assess and issue relevant Construction Certification within
Building Surveyor 2
• Class 2 to 9 with a floor area ≤ 500m and a Grade parameters
maximum rise of 2 storeys • Undertake inspections during construction
• Assess and issue Occupation Certificates within Grade
parameters
Grade A3 • Restricted to Class 1 and Class 10 buildings • Undertake inspections except for the Final Inspection
Building Inspector 2
• Class 2 to 9 with a floor area ≤ 500m and a
maximum rise of 2 storeys
Queensland
Building Surveyor • Unrestricted • Assess documentation for the issue of a Development

Permit for Building Work
• Carry out inspections of building work during construction
• Issue Final Inspection Certificates and Certificate of
Classification
Assistant Building • Restricted to all classes of building having a • Assess documentation for the issue of a Development
Surveyor rise in storeys of not more than 3 and a total Permit for Building Work
2
floor area ≤ 2,000m without supervision • Carry out inspections of building work during construction.
Issue Final Inspection Certificates and Certificate of
Classification
• Under the supervision of a building surveyor • Under supervision assist a building surveyor in inspecting
help in assessing and inspecting all classes other buildings and structures
of buildings and structures
Building Surveying • Restricted to Class 1 and 10 buildings if the • Wtih the parameters outlined, assist a building surveyor
Technician technician has more than 1 year experience

Building Controls – Accreditation Framework (cont.)
Victoria
Building Surveyor Unlimited • Unrestricted • Assess documentation for BCA compliance
• Issue of Building Permit
• Carry out Mandatory Inspection
• Issue of Occupancy Certificate
Building Surveyor Limited • Restricted scope of work – able to certify buildings

up to three storeys with a maximum floor area of
2
2,000m
Building Inspector Unlimited • Unrestricted • Undertake inspections during
construction
Building Inspector Limited • Restricted to certain classes of building determined • Undertake inspections on certain classes
by the Building Practitioners Board of buildings during construction
South Australia
Building Surveyor • Unrestricted • Assess documentation
• Issue of Building Rules Consent
• Inspection of Buildings
• Issue of Certificate of Occupancy

Assistant Building Surveyor • Restricted to all classes of building having a rise of • Assess documentation
storeys of not more than 3 and a total floor area not • Issue of Building Rules Consent
2
exceeding 2,000m • Inspection of Buildings
• Issue of Certificate of Occupancy
Building Surveying Technician • Restricted Class 2–9 buildings having a rise of • Assess documentation
storeys of not more than 1 and a total floor area not • Issue of Building Rules Consent
2
exceeding 500m • Inspection of Buildings
• Class 1a or 10 buildings that do not have a rise in • Issue of Certificate of Occupancy
storeys exceeding 2
Northern Territory
Building Surveyor • Unrestricted • Assess documentation for BCA Compliance
• Issue of Occupancy Permit
Building Surveyor • Restricted (Class 1 and 10 buildings only) • Assess documentation for BCA Compliance
• Issue of Occupancy Permit
Western Australia
The framework became effective from 2009, incorporating a transitional period through to 2013 to allow for a temporary accreditation
process to recognise prior learning and industry experience.
Level 1 Building Surveyor • Unrestricted • Able to certify and provide advice for
any building
Level 2 Building Surveyor • Restricted • Able to certify and provide advice for
2
buildings not exceeding 2,000m and 3
storeys in height
Building Controls Legislation
New South Wales Building Legislation Changes
Changes to the certification procedures for minor building works (existing non-residential) mean some
development applications in New South Wales are no longer needed. The State Environmental Planning
Policy (SEPP) – Exempt and Complying Development Codes – applies in all areas, except Warringah
Council, Bathurst Council, Western Sydney Parklands and the Kosciuszko National Park area.
This policy provides one set of prescriptive development standards for works.
Types of development may include:
Internal fit out works • bulky goods retail

• commercial premises (retail, office and business premises)
• light industry premises
• warehouse or distribution centre
Change of use of premises for • bulky goods tenancy to another bulky goods premises
• a type of commercial premises to another type of commercial premises
• light industry to another light industry
• warehouse or distribution centre to another type of warehouse or distribution centre
• light industry to warehouse or distribution centre (or vice versa)
• light industry to an ancillary office
• warehouse or distribution to an ancillary office
Mechanical Ventilation systems
Shop front and awning alterations • no increase in GFA

• no reduction in glazed area
• no reduction in transparency of shopfront
Skylights and roof windows (unless site is in
a bushfire prone area)
Building Code of Australia Compliance must be achieved for the works to be undertaken as a complying
development. If fire safety engineering or any other performance-based assessment is required to
demonstrate BCA compliance, then a Development Application may be required.
Even if the existing building has fire engineering as part of the base building parameters and the works
proposed do not introduce any new fire engineering assessments, the building will need a check to
ensure it is still compliant with the base building fire engineering.
Development consent is required for heritage listed lots or buildings, environmentally sensitive land and
where the previous use of the building/tenancy has not been the subject of an approval for the use. Also,
works to existing buildings require a pre-certificate inspection.
Essential Fire Safety Measures
The Environmental Planning and Assessment Regulation 2000 requires the owner of a building to
issue an Annual Fire Safety Statement (AFSS) stating that each of the fire safety measures listed for
the building are capable of performing to a standard of performance, no less than that which they were
originally designed.
It is the owner’s responsibility to carry out inspections ensuring that these essential fire safety measures
comply with the relevant design standard(s). Fines for late, or non-issuing, of an AFSS range from $500
for each week overdue, up to a total of $110,000. Inspections of these measures must be carried out
within a three month period of the AFSS being issued and copies must be prominently displayed within
the building.

Building Controls Legislation (cont.)
Queensland Building Legislation Changes
Swimming Pool Fencing
In September 2009 the Queensland Government approved a two stage swimming pool safety
improvement strategy.
Stage 1 for new pools took effect on 1 December 2009. It includes:
• the latest swimming pool fencing standards (including temporary fencing)
• mandatory final inspections
• the latest cardiopulmonary resuscitation (CPR) signage standards
Stage 2 took effect on 1 December 2010. It includes:
• the consolidation of standards into one pool safety standard (new and existing pools must comply with
the standard within five years unless sold or leased first)
• a five-year phase out of child-resistant doors (self-closing and self-latching) used as pool barriers for
existing pools, unless sold or leased first
• a sale and lease compliance system requiring pool safety certificates
• wider application of state laws to include indoor and hotel pools
• all swimming pools to be included on the state's pool register

• fencing for all portable pools and spas deeper than 300mm
• mandatory inspections of pools by local government for immersion incidents
Sustainability Declarations
A sustainability declaration is a compulsory checklist that enables a seller to highlight desirable
sustainability features during the marketing of a home for sale. The features cover energy and water
efficiency, access and safety.
From 2010, sellers in Queensland are required to prepare a sustainability declaration before a home can
be marketed for sale either privately or through an agent. It aims to:
• increase seller and buyer awareness of sustainability features and their potential value
• promote dollar savings from improved energy and water efficiencies
Western Australia Building Legislation Changes
The Western Australian Government is planning to implement the new Building Act in 2011. This much
needed building reform will create a more responsive and modern building regulatory system.
Of particular note is the introduction of a private certification process as part of the overall Building
Licence issuing function. This will relieve the ever increasing pressure on local government authorities to
meet the competitive expectations of the commercial property sector.
Developers and project teams will be able to engage a qualified and accredited building surveyor to
act as a private certifier to certify the project’s design compliance. Local government authorities will be
able to rely on this certificate to issue the building permit without having to undertake a comprehensive
assessment. It is anticipated that a building permit should be issued without delay if a private certifier has
certified the design of a commercial project.
The new Building Act will also introduce mandatory inspection requirements for the construction and
occupation phases of the project program.
Building Controls Legislation (cont.)
Victorian Building Legislation Changes
Maintaining Essential Safety Measures in Commercial Buildings in Victoria
When the construction of a commercial building is complete, it is now a legislative requirement that the
building owner is responsible for the upkeep and maintenance of fire and life safety measures of that
building. The maintenance of essential safety measures will ensure that the safety measures (mainly
dealing with fire situations within the building) remain at the required operational level throughout the life
of the building.
If the building was built before 1 July 1994, the owner is required to maintain the existing essential safety
measures installed in the building to a working condition that enables them to fulfil their purpose, and the
expectations of the council and Fire Brigade Authorities. It is the owners responsibility to engage suitably
qualified people to establish a schedule of existing essential safety measures required to be maintained in
the building, and the level and frequency of maintenance.
The essential safety measures determination was required to be prepared by 13 June 2009, with
subsequent reports to be carried out before 13 June every year, in accordance with Part 12, Building
Regulations 2006.
Building Controls for Bushfire Safety
Victorian Building Regulations were amended from 11 March 2009 to refer to the newly published
Australia Standard, AS 3959–2009 Construction of Buildings in Bushfire-Prone Areas (the Standard). The
Standard sets out construction requirements for a building, determined according to the highest Bushfire
Attack Level (BAL) of the site.

The amendment to the regulations adjusts the relevant performance requirements in the BCA to remove
reference to ‘designated bushfire-prone area’ and include Class 10a buildings associated with a Class
1, 2 or 3 building. As a result of the amendment, all of these buildings are now subject to the site
assessment provisions required by the Standard, although many will be assessed as BAL-LOW and will
not be required to comply with additional construction requirements.
The BAL for which specific construction requirements are set out in the Standard are:
• BAL-12.5
• BAL-19
• BAL-29
• BAL-40
• BAL-FZ
These categories are allocated after a site assessment by an architect or builder that considers: construction
type, radiant heat performance, proximity to outbuildings, slope of the land, vegetation type and fire
shielding. The building surveyor then checks that the appropriate Standard is met through to completion.
As part of a streamlining of planning processes after the 2009 bushfires, the government removed
the need for a planning permit for activities related to rebuilding, including the clean-up, repairs and
construction of temporary accommodation. Houses that are being replaced on the same site in a Wildfire
Management Overlay area will not need a planning permit, while a permit will still be required if there is an
overlay relating to heritage, landslip or flooding.
In addition to these measures, in 2010 the Australian Building Codes Board announced a Performance
Standard for the design and construction of private bushfire shelters. These have been released for public
comment and will be included in the BCA 2011.
Source: Building Commission

Verification of Deliverables
A key concern for government and financial stakeholders in major projects is the verification that their
specified requirements have been met, commercially and technically.
The application of quality systems during design and construction ensures that the scope, quality
and function targets of the project are met. The surveillance and auditing of the quality system act to
safeguard key stakeholders, and the step by step process provides firm evidence of the extent to which
project objectives are met.
Furthermore, the effective implementation of ISO 9000 quality assurance standards by all parties in the
development process assures compliance and workmanship in the first instance, as well as evidence of
inspections and defects.
The role of the independent reviewer is to verify that contractors’ and consultants’ obligations are progressively
being met, ensure that an adequate quality system is adopted for the project and to audit its application.
Objective and professionally independent reviews require continuous and open communications with
project parties. The aim is to obtain ongoing knowledge and awareness which will generate identification of
critical issues of non-compliance or safety concerns.
Independent Reviewing at Various Levels:

• independent review of project objectives

• independent review of design
• independent review of construction
• inspection surveillance
• auditing of management plans
• monitoring project time and value
Construction Industry Contracts
Code Name Author
ABIC MW-1 Major Works Contract (2003) RAIA, MBA
ABIC BW-1 Basic Works Contract (2002) RAIA, MBA
ABIC SW-1 Simple Works Contract (2002) RAIA, MBA
ABIC EW-1 Early Works Contract (2003) RAIA, MBA
AS 4000 General Conditions of Contract (1997) (Supersedes AS 2124) Standards Australia
AS 4901 Subcontract Conditions (1998) (Supersedes AS 2545) Standards Australia
AS 4902 General Conditions of Contract – ‘Design & Construct’ (2000) (Supersedes AS 4300) Standards Australia
AS 4903 General Conditions of Subcontract – ‘Design & Construct’ (2000) Standards Australia
AS 4905 Minor Works Contract Conditions (Superintendent administered) (2002) Standards Australia
AS 4906 Minor Works Contract Conditions (Principal administered) (2002) Standards Australia
AS 4915 Project Management – General Conditions Standards Australia
AS 4916 Construction Management – General Conditions Standards Australia
AS 4917 Construction Management Trade Contract – General Conditions (2003) Standards Australia
Certification Services
Third Party Certification
Competitive market forces are increasing the demand for organisations to implement management systems
that operate in accordance with recognised Standards. Certification is the formal recognition that a company
has documented and implemented a management system that meets the requirements of a standard and
can be considered as a means of achieving best practice in business.
Certification bodies within Australia must be accredited by organisations such as the Joint Accreditation
System of Australia and New Zealand (JAS-ANZ). JAS-ANZ ensures complete independence and
impartiality as certification bodies are required to keep client details in the strictest confidence. JAS-
ANZ publish an international register of certified companies across various standards, which provides
stakeholders and the community with confidence in your organisations opperational performance. These
‘best practice’ standards include:
• ISO 9001:2008 (Quality Management Systems)
• ISO 14001:2004 (Environmental Management Systems)
• AS/NZS 4801:2001 (Occupational Health & Safety Systems)
• SafetyMAP (Occupational Health & Safety Systems)
• OHSAS 18001:2007 (Occupational Health & Safety Systems)
• CCF (Civil Construction Management Code)
• NAT (National Audit Tool)
• Environmental Product Standards
Why is Certification Important?

Certification of your business management system through independent verification has the primary benefits of:
Commitment
to
Stakeholders
Enhanced
Corporate Competitive
Knowledge Advantage
Certification
Effective
Risk Recognised
Management Worldwide
Less
Duplication Confirmation
Improves of
Profitability Best Practice

The Certification Process
1.Initial Contact 2.Application

Gaining an understanding of your business, After reviewing the proposal, an approved
providing you with all the information about signatory should complete the formal contract,
certification, the processes and what you need ‹ accepting the certification process.
to do. You will then be provided with a fee
proposal detailing fees and costs.
‹
4.System Review 3.Certification Pre-Assessment
Review of management system to check
‘what you say you do meets with the ‹ A Pre-Assessment of your organisation
is undertaken to ensure you are ready
standard’. You will receive a copy of the for the certification assessment including
business diagnostic report which will outline site processes, OHS hazards, risk and
any non-conformances. environmental impacts.
‹
5.Conformity Assessment 6.Surveillance Assessment

Determines if ‘you are doing what you say Carried out at pre-determined intervals
you do’. Your Lead Assessor will present in the same manner as the Certification

the findings, and if there are no major Assessment. These are necessary to be
non-conformances, certification will be
recommended. Following approval by an
‹ assured that your system continues to comply
with the Certification Standard.
independent committee, you will receive your
Certification of Conformity and be listed by
JAS-ANZ.
‹
7.Re-Assessment
Every three years a full Re-Assessment of the
system as a whole needs to be completed.
This confirms that the systems in their entirety
are working well and that the links between
processes are sound.
Second Party Auditing
Second party audits are becoming increasingly prevalent in the property and construction industry. These
audits are focused on the specific requirements of a client, as opposed to a specific Standard. The
compliance can be to a process or to a product, against any agreed specification. The purpose is to provide
the client with objective evidence of compliance to a specification, as agreed between customer and supplier.
Product Certification
In addition to auditing management systems, JAS-ANZ also oversees the certification of products. Product
certification is a means of demonstrating that a product, process, or service satisfies specified requirements.
Products, once certified, may be endorsed with a quality mark or be eligible to display a certification mark.
This enables greater assurance for materials used in the construction and wider industries.
DEGW
DEGW is a specialist business consultancy owned by Davis Langdon, an AECOM company, that helps
clients capitalise on the relationship between people and physical place to enhance organisational
performance.
Supported by rigorous and structured evidence, and through an ability to really listen to the aspirations,
strategic needs and practical commercial concerns of clients, DEGW develops insightful solutions to
client challenges.
DEGW Services
Research & Advisory
DEGW services are driven by user research. A deep understanding of clients’ particular needs, such
as workplace performance and utilisation, allows solutions to be tailored to meet immediate goals and
long-term objectives. Our research methods, particularly understanding how user demands are changing,
enables DEGW to provide the best possible advice:
Desk research & literature reviews Ethnographic techniques Workplace performance surveys
Research & Industry condition surveys Post-occupancy evaluations
Advisory
Social network analysis Time utilisation studies
Strategic Briefing
Strategic briefing is at the core of DEGW’s enterprise. At the heart of this service is the notion that
buildings and spaces operate on many levels; aesthetic and practical, public and private, and as objects
with a lifespan, they will inevitably change and adapt. DEGW helps clients develop visions for the future
and practical strategies that enable people, process and place to support these visions.
Envisaging use of buildings & spaces User requirements

Strategic Describing optimal spaces Identifying strategic requirements
Briefing
Business case development Measuring or calibrating success
Design Strategy
DEGW acts as the catalyst for conceiving new solutions. An enduring focus on research and strategic
thinking as an essential first step leads to focused briefs that frame each design solution, and allow
scenarios to be tested against client and user priorities.
Design concepts & feasibility studies Research & benchmarking

Design Design facilitation Building appraisal
Strategy
Design management
Change Management
DEGW’s change and communications service helps organisations minimise loss of productivity and business
disruption during the workplace transition period. It also enables a more complete understanding of the
business benefits and opportunities. These services support the journey of change for client organisations.
Communication & engagement Capability development Evaluation

Change
Management Familiarisation services Training & coaching
Protocol development Transition training & support

DEGW (cont.)
Client Sectors
Commercial & Government Workplaces
DEGW has delivered a vast array of projects on both a global and local scale, providing strategic briefing,
design strategy, change management, research and advisory services for projects ranging from 50 person
pilot studies to major 7,000 person headquarters accommodation.
Research Process for Workplaces
Organisational goals
Workplace performance survey
Staff focus groups

Making data meaningful Spatial implications
involves carefully fitting
the pieces together
Strategy development Recommendations

Observations
Interviews

Learning Environments
DEGW’s approach to higher education environments is founded upon research and consultation and
the experience that comes from the exploration of innovation with leading institutions and thinkers
around the world.
Key areas of focus in this sector include pedagogical innovation (particularly in the context of evolutional
change in technology) and the evolving interrelationships of scholarship, teaching and research.
Changing funding paradigms have spawned a new convergence of education and commerce, and
competition has increased for staff and students. There is also a growing need for human and facility
resource optimisation to achieve economic, educational and environmental sustainability.
Healthcare Environments
The healthcare sector is facing continuing demand for “less but better space”, as hospitals and institutions
struggle to reconcile the pressures of reducing overhead cost whilst also improving the effectiveness of
health service delivery.
DEGW’s recent work has demonstrated that the answer lies not in cost reduction alone, but in also
improving the productivity and well-being of clinicians, health practitioners and support staff through
greater collaboration.
Building Owners & Developers
Creating space that will sell or lease is the key imperative of building owners and developers. The space
must also reflect the current and future requirements of potential occupiers and offer genuine business
benefits to tenants. DEGW’s work integrates research, strategy and spatial concepts for occupants,
owners & developers. It is informed by a deep understanding of the changing nature of working and
learning globally, regionally and locally.
Strategies for combining people and places to improve
organisational performance
Nine: Working Calendars
Gateway Upgrade Project, Brisbane, Queensland

Nine:
Working Calendars
New South Wales 95
Victoria 96
Queensland 97
Australian Capital Territory 98
South Australia 99
Tasmania 100
Western Australia 101
Northern Territory 102
New Zealand 103

New South Wales 2011
January February March

S M T W T F S S M T W T F S S M T W T F S
30 31 1 1 2 3 4 5 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12 6 7 8 9 10 11 12
9 10 11 12 13 14 15 13 14 15 16 17 18 19 13 14 15 16 17 18 19
16 17 18 19 20 21 22 20 21 22 23 24 25 26 20 21 22 23 24 25 26
23 24 25 26 27 28 29 27 28 27 28 29 30 31
April May June

1 2 1 2 3 4 5 6 7 1 2 3 4
3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11
10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18
17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25
24 25 26 27 28 29 30 29 30 31 26 27 28 29 30
July August September

31 1 2 1 2 3 4 5 6 1 2 3
3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10
10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17
17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24
24 25 26 27 28 20 30 28 29 30 31 25 26 27 28 29 30
October November December

30 31 1 1 2 3 4 5 1 2 3
2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10
9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17
16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24
23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31
Key: Other Days:

Public Holidays Industry Picnic Day
Government School Holidays School Staff Dev. Days
RDOs
Bank Holiday (not state-wide)
Note: All holiday dates are accurate at the time of publishing, but may be subject to change.
Victoria 2011

30 31 1 1 2 3 4 5 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12 6 7 8 9 10 11 12
9 10 11 12 13 14 15 13 14 15 16 17 18 19 13 14 15 16 17 18 19
16 17 18 19 20 21 22 20 21 22 23 24 25 26 20 21 22 23 24 25 26
23 24 25 26 27 28 29 27 28 27 28 29 30 31
April May June

1 2 1 2 3 4 5 6 7 1 2 3 4
3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11
10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18
17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25
24 25 26 27 28 29 30 29 30 31 26 27 28 29 30

31 1 2 1 2 3 4 5 6 1 2 3
3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10
10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17
17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24
24 25 26 27 28 20 30 28 29 30 31 25 26 27 28 29 30

30 31 1 1 2 3 4 5 1 2 3
2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10
9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17
16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24
23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31
Key: Other Days:

Public Holidays Christmas Closedown
Government School Holidays
RDOs
Melbourne Cup

Queensland 2011

30 31 1 1 2 3 4 5 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12 6 7 8 9 10 11 12
9 10 11 12 13 14 15 13 14 15 16 17 18 19 13 14 15 16 17 18 19
16 17 18 19 20 21 22 20 21 22 23 24 25 26 20 21 22 23 24 25 26
23 24 25 26 27 28 29 27 28 27 28 29 30 31
April May June

1 2 1 2 3 4 5 6 7 1 2 3 4
3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11
10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18
17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25
24 25 26 27 28 29 30 29 30 31 26 27 28 29 30

31 1 2 1 2 3 4 5 6 1 2 3
3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10
10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17
17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24
24 25 26 27 28 20 30 28 29 30 31 25 26 27 28 29 30

30 31 1 1 2 3 4 5 1 2 3
2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10
9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17
16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24
23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31
Key: Other Days:

Public Holidays Student Free Days
Government School Holidays Christmas Closedown
RDOs*
Royal Qld Show (Brisbane) * RDOs reflect the strict application of the award.
Australian Capital Territory 2011

30 31 1 1 2 3 4 5 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12 6 7 8 9 10 11 12
9 10 11 12 13 14 15 13 14 15 16 17 18 19 13 14 15 16 17 18 19
16 17 18 19 20 21 22 20 21 22 23 24 25 26 20 21 22 23 24 25 26
23 24 25 26 27 28 29 27 28 27 28 29 30 31
April May June

1 2 1 2 3 4 5 6 7 1 2 3 4
3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11
10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18
17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25
24 25 26 27 28 29 30 29 30 31 26 27 28 29 30

31 1 2 1 2 3 4 5 6 1 2 3
3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10
10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17
17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24
24 25 26 27 28 20 30 28 29 30 31 25 26 27 28 29 30

30 31 1 1 2 3 4 5 1 2 3
2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10
9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17
16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24
23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31
Key: Other Days:

Government School Holidays Family & Community Day
RDOs Christmas Closedown
Canberra Day

South Australia 2011

30 31 1 1 2 3 4 5 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12 6 7 8 9 10 11 12
9 10 11 12 13 14 15 13 14 15 16 17 18 19 13 14 15 16 17 18 19
16 17 18 19 20 21 22 20 21 22 23 24 25 26 20 21 22 23 24 25 26
23 24 25 26 27 28 29 27 28 27 28 29 30 31
April May June

1 2 1 2 3 4 5 6 7 1 2 3 4
3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11
10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18
17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25
24 25 26 27 28 29 30 29 30 31 26 27 28 29 30

31 1 2 1 2 3 4 5 6 1 2 3
3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10
10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17
17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24
24 25 26 27 28 20 30 28 29 30 31 25 26 27 28 29 30

30 31 1 1 2 3 4 5 1 2 3
2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10
9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17
16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24
23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31
Key: Other Days:

Public Holidays Christmas Closedown
Government School Holidays
RDOs
Adelaide Cup
Tasmania 2011

30 31 1 1 2 3 4 5 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12 6 7 8 9 10 11 12
9 10 11 12 13 14 15 13 14 15 16 17 18 19 13 14 15 16 17 18 19
16 17 18 19 20 21 22 20 21 22 23 24 25 26 20 21 22 23 24 25 26
23 24 25 26 27 28 29 27 28 27 28 29 30 31
April May June

1 2 1 2 3 4 5 6 7 1 2 3 4
3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11
10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18
17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25
24 25 26 27 28 29 30 29 30 31 26 27 28 29 30

31 1 2 1 2 3 4 5 6 1 2 3
3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10
10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17
17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24
24 25 26 27 28 20 30 28 29 30 31 25 26 27 28 29 30

30 31 1 1 2 3 4 5 1 2 3
2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10
9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17
16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24
23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31
Key: Area Days: 30 Sep – Burnie Show

Public Holidays 5 Jan – Devonport Cup 6 Oct – Royal Launceston Show
Government School Holidays 14 Feb – Royal Hobart Regatta 14 Oct – Flinders Island Show
RDOs 23 Feb – Launceston Cup 20 Oct – Royal Hobart Show
Eight Hours Day 1 Mar – King Island Show 7 Nov – Recreation Day (North)
Note: All holiday dates are accurate at the time of 6 May – Agfest (Circular Head) 25 Nov – Devonport Show
publishing, but may be subject to change.

Western Australia 2011

30 31 1 1 2 3 4 5 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12 6 7 8 9 10 11 12
9 10 11 12 13 14 15 13 14 15 16 17 18 19 13 14 15 16 17 18 19
16 17 18 19 20 21 22 20 21 22 23 24 25 26 20 21 22 23 24 25 26
23 24 25 26 27 28 29 27 28 27 28 29 30 31
April May June

1 2 1 2 3 4 5 6 7 1 2 3 4
3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11
10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18
17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25
24 25 26 27 28 29 30 29 30 31 26 27 28 29 30

31 1 2 1 2 3 4 5 6 1 2 3
3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10
10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17
17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24
24 25 26 27 28 20 30 28 29 30 31 25 26 27 28 29 30

30 31 1 1 2 3 4 5 1 2 3
2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10
9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17
16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24
23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31
Key: Other Days:

Government School Holidays Christmas Closedown
RDOs
Foundation Day

Northern Territory 2011

30 31 1 1 2 3 4 5 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12 6 7 8 9 10 11 12
9 10 11 12 13 14 15 13 14 15 16 17 18 19 13 14 15 16 17 18 19
16 17 18 19 20 21 22 20 21 22 23 24 25 26 20 21 22 23 24 25 26
23 24 25 26 27 28 29 27 28 27 28 29 30 31
April May June

1 2 1 2 3 4 5 6 7 1 2 3 4
3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11
10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18
17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25
24 25 26 27 28 29 30 29 30 31 26 27 28 29 30

31 1 2 1 2 3 4 5 6 1 2 3
3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10
10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17
17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24
24 25 26 27 28 20 30 28 29 30 31 25 26 27 28 29 30

30 31 1 1 2 3 4 5 1 2 3
2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10
9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17
16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24
23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31
Key: Regional Days – July: Regional Day – June:

Public Holidays 1 Alice Springs Show Day 24 Borroloola Show Day
Government School Holidays 8 Tennant Creek Show Day
Student Free Days 15 Katherine Show Day
May Day 22 Darwin Show Day Note: All holiday dates are accurate at the time of

New Zealand 2011

30 31 1 1 2 3 4 5 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12 6 7 8 9 10 11 12
9 10 11 12 13 14 15 13 14 15 16 17 18 19 13 14 15 16 17 18 19
16 17 18 19 20 21 22 20 21 22 23 24 25 26 20 21 22 23 24 25 26
23 24 25 26 27 28 29 27 28 27 28 29 30 31
April May June

1 2 1 2 3 4 5 6 7 1 2 3 4
3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11
10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18
17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25
24 25 26 27 28 29 30 29 30 31 26 27 28 29 30

31 1 2 1 2 3 4 5 6 1 2 3
3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10
10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17
17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24
24 25 26 27 28 20 30 28 29 30 31 25 26 27 28 29 30

30 31 1 1 2 3 4 5 1 2 3
2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10
9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17
16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24
23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31
Key: Provincial Holidays: 26 Sep – Canterbury (South)

Public Holidays 17 Jan – Southland 21 Oct – Hawke’s Bay
Government School Holidays 24 Jan – Wellington 31 Oct – Marlborough
Waitangi Day 31 Jan – Auckland & Nelson 11 Nov – Canterbury
Note: All holiday dates are accurate at the time of 14 Mar – Taranaki 28 Nov – Chatham Islands
21 Mar – Otago 5 Dec – Westland

Ten: Directory of Offices
Melbourne Convention and Exhibition Centre, Melbourne, Victoria

Ten:
Directory of
Key Offices
Australia and New Zealand
Offices 106
International Offices 107
AECOM Main Offices 108

Australia and New Zealand
Australia
Adelaide Sydney
Level 12, 25 Grenfell Street Level 5, 100 Pacific Highway
Adelaide South Australia 5000 North Sydney New South Wales 2060
Telephone: +61 8 8410 4044 Fax: +61 8 8410 4166 PO Box 1891 North Sydney New South Wales 2059
Email: adelaide@davislangdon.com.au Telephone: +61 2 9956 8822 Fax: +61 2 9956 8848
Email: syd@davislangdon.com.au
Brisbane
Level 13, 324 Queen Street Townsville
Brisbane Queensland 4000 Level 1, 21 Stokes Street
Telephone: +61 7 3221 1788 Fax: +61 7 3221 3417 Townsville Queensland 4810
Email: bris@davislangdon.com.au Telephone: +61 7 4721 2788 Fax: +61 7 4721 3766
Email: townsville@davislangdon.com.au
Cairns
Suite 8, 78 Mulgrave Road
PO Box 751 New Zealand
Cairns Queensland 4870 Auckland
Telephone: +61 7 4051 7511 Fax: +61 7 4051 7611 Level 10, Citigroup Centre
Email: cairns@davislangdon.com.au 23 Customs Street East
Canberra Auckland 1010
Suite 702, 54 Marcus Clarke Street PO Box 935
Canberra Australian Capital Territory 2600 Auckland 1140 New Zealand
GPO Box 824 Australian Capital Territory 2601 Telephone: +64 9 379 9903 Fax: +64 9 309 9814
Telephone: +61 2 6257 4428 Fax: +61 2 6247 1468 Email: auck@davislangdon.co.nz
Email: canberra@davislangdon.com.au Christchurch
Darwin 93-95 Cambridge Terrace
Suite 1 A, Level 1, CML Building Christchurch 8013 New Zealand
59 Smith Street Darwin Northern Territory 0800 PO Box 3166 Christchurch 8140 New Zealand
PO Box 3419 Darwin Northern Territory 0801 Telephone: +64 3 366 2669 Fax: +64 3 366 9231
Telephone: +61 8 8981 8020 Fax: +61 8 8941 1092 Email: chch@davislangdon.co.nz
Email: darwin@davislangdon.com.au Wellington
Hobart Level 15, Davis Langdon House
53 Salamanca Place 49 Boulcott Street
Hobart Tasmania 7000 Wellington 6011
Telephone: +61 3 6234 8788 Fax: +61 3 6231 1429 PO Box 358
Email: hobart@davislangdon.com.au Wellington 6140 New Zealand
Telephone: +64 4 472 7505 Fax: +64 4 473 3778
Melbourne Email: wgtn@davislangdon.co.nz

Level 20, 350 Queen Street
Melbourne Victoria 3000
Telephone: +61 3 9933 8800 Fax: +61 3 9933 8801
Email: melb@davislangdon.com.au
Perth
Level 8, 251 Adelaide Terrace
Perth Western Australia 6000
Telephone: +61 8 9221 8870 Fax: +61 8 9221 8871
Email: perth@davislangdon.com.au

International
Africa United Kingdom

Botswana Gaborone +267 390 0711 England Birmingham +44 121 710 1100
Egypt Cairo +44 20 7061 7000 Bristol +44 117 927 7832
Mozambique Maputo +258 21 49 0696 Cambridge +44 122 335 1258
South Africa Bloemfontein +27 51447 2869 Heathrow +44 20 8564 6640
Cape Town +27 21 423 7840 Leeds +44 113 243 2481
Durban +27 31 275 4200 Liverpool +44 151 236 1992
George +27 44 873 5070 London +44 20 7061 7000
Johannesburg +27 11 544 1800 Maidstone +44 1732 840 429
Corporate - Johannesburg +27 11 544 4300 Manchester +44 161 819 7600
Klerksdorp +27 18 468 5059 Norwich +44 1603 628 194
Nelspruit +27 13 741 4882 Oxford +44 1235 555 025
Pietermaritzburg +27 33 345 8371 Peterborough +44 1733 362 000
Port Elizabeth +27 41 365 6221 Plymouth +44 1752 827 444
Port Shepstone +27 39 682 4114 Southampton +44 23 8033 3438
Pretoria +27 12 460 5100 Ireland Cork +353 21 422 2800
Richards Bay +27 35 789 7624 Dublin +353 1 676 3671
Stellenbosch +27 21 880 8300 Galway +353 91 530 199
Vanderbijlpark +27 16 889 4159 Limerick +353 61 318 870

Scotland Edinburgh +44 131 550 9440
Glasgow +44 141 248 0300
Wales Cardiff +44 29 2049 7497
America Middle East

Boston +1 617 357 1496 Bahrain Manama +973 17 588 796
Honolulu +1 808 536 6100 Lebanon Beirut +961 1 780 111
Los Angeles +1 310 393 9411 Qatar Doha +974 4458 0150
New York +1 212 697 1340 UAE Abu Dhabi +971 2 444 2040
Philadelphia +1 215 564 3104 Dubai +971 4 423 3690
Sacramento +1 916 925 8335
San Francisco +1 415 981 1004 Europe

Seattle +1 206 343 8119 Germany Munich +49 89 452 3383
Washington D.C. +1 202 828 6292 Spain Madrid +34 91 431 0290

AECOM Main Offices
Australia Asia
Brisbane Hong Kong Shatin
Level 8, 540 Wickham Street 8/F, Grand Central Plaza, Tower 2
Fortitude Valley Queensland 4006 138, Shatin Rural Committee Road
Australia Shatin
Telephone: +61 7 3553 2000 Fax: +61 7 3553 2050 China
Email: brisbane@aecom.com Telephone: +852 2065 6262 Fax: +852 2691 2649
Global & Americas Middle East

Los Angeles (Worldwide Headquarters) The Towers at the Trade Center
555 South Flower Street, Suite 3700 West Tower
Los Angeles, CA 90071-2300 Level 7, PO Box 53
United States Abu Dhabi
Telephone: +1 213 593 8000 Fax: +1 213 593 8730 United Arab Emirates
Telephone: +971 2 410 9400 Fax: +971 2 410 9401
New York
605 Third Avenue Africa
New York, NY 10158
Tripoli
United States
End of Bevieu Road
Telephone: +1 212 973 2900 Fax: +1 212 682 5287
Tajura
Europe Libya
Telephone: +021 465 0147 Fax: +1 212 682 5287
London
The Johnson Building
77 Hatton Garden
United Kingdom
Telephone: +44 020 7645 2000
Fax: +44 020 7645 2099
Moscow
29 Serebryanicheskaya nab
109028
Russia
Telephone: +7 495 782 7360 Fax: +7 495 783 7361
A full listing of AECOM offices globally is available at www.aecom.com


Davis Langdon, an AECOM company, Blue Book 2011

13 th Edition © 2011
We would like to acknowledge:
Photography by Nose to Tail (www.nosetotail.com.au)
Printed by William Troedel Pty Ltd (www.troedel.com.au)

Blue Book 2011

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THE BLUE BOOK 2011

Accessible Knowledge for the

© Davis Langdon Australia Pty Ltd

More information on AECOM and its services can be found at www.aecom.com

Global Property and Construction Consultants

Lumiere Apartments, Sydney, NSW

One: About Davis Langdon

• life cycle assessments

2 Davis Langdon, An AECOM Company

• community consultation and communication

Sustainability Infrastructure Services

improvement opportunities identified Building performance has now been heightened

4 Davis Langdon, An AECOM Company

Wheller Gardens Aged Care, Brisbane, Queensland

Two: Construction Key Statistics - Australia

Value of Construction Work Done (Public and Private)

Type of Work A$ billion %

|m) Residential and Non-Residential

Source: ABS 8755.0

AUD Exchange Rates

USD EUR GBP NZD YEN (right axis)

Source: Reserve Bank of Australia

8 Davis Langdon, An AECOM Company

Source: ABS 6321.0.55.001

Two: Construction Key Statistics - Australia

Source: ABS 6321.0.55.001

Unemployment Rate – Historical

NSW VIC QLD SA WA Australia

10 Davis Langdon, An AECOM Company

Stimulus Cost as a Percentage of 2008 GDP for Selected OECD Countries

Supportive Fiscal Packages

Government Spending Revenues (Tax Breaks) Fiscal Balance Norway

Non-Residential Building Approvals

Two: Construction Key Statistics - Australia

Non-Residential Building Approvals (Financial Years)

2007 – 2008 2008 – 2009 2009 – 2010

1.3bn 1.6bn 5.8bn

9.9bn 5.5bn 5.9bn 16.1bn

Source: ABS 8731.0

NSW VIC QLD SA WA TAS NT ACT National

Non-Residential Building Activity

VIC NSW QLD WA SA NT ACT TAS

Source: ABS 8755.0

12 Davis Langdon, An AECOM Company

Two: Construction Key Statistics - Australia

Approval Value (A$m)

Source: ABS 8731.0

NSW VIC QLD SA WA TAS NT ACT

Source: ABS 8762.0

Value of Engineering Work Done 2009–2010

Source: ABS 8762.0

14 Davis Langdon, An AECOM Company

Two: Construction Key Statistics - Australia

NSW QLD SA VIC WA NT TAS ACT

Source: ABS 8762.0

Waitomo Caves Visitor Centre, Waitomo, New Zealand

Three: Construction Key Statistics - New Zealand

Construction Activity (by Sector)

2007 – 2008 2008 – 2009 2009 – 2010

1.43bn 1.68bn 1.44bn

Residential Accommodation Hospitals & Nursing Homes Factories & Industrial

Source: Statistics New Zealand BAS 008AA