2012 Property and Constrution Industry 2012

THE BLUE BOOK
ACCESSIBLE KNOWLEDGE
FOR THE PROPERTY AND
CONSTRUCTION INDUSTRY
2012
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

Davis Langdon, An AECOM Company Foreword
This, the 14th edition of The Blue Book,

contains detailed analysis of the
market sectors you have told us are
important to you. With each new edition,
we aim to provide you with the latest
updates relevant to the property and
construction industries.
The rate of positive sustainable change
occurring globally is gaining pace, and
is covered in detail in our chapter on
global directions.
Chapters on the adoption of Integrated
Project Delivery, and on the increased use
of Building Information Modelling and lean
Mark Beattie construction methods, provide insight into
Managing Director – Davis Langdon these important trends.
Australia New Zealand Recognising that infrastructure challenges
and opportunities are at the core of our
economic growth, we have included a
new chapter on key infrastructure sectors
and an updated section on ecologically
sustainable development initiatives and
the impact of the Australian carbon price.
We are excited that The Blue Book
can generate new thinking and new
opportunities for our clients.
This year’s edition is our second since
Davis Langdon became an AECOM
company. I look forward to continuing to
share our knowledge with you, to enhance
the quality of information, services and
technologies you receive.
Your feedback is welcome on how we can
continue tailoring The Blue Book’s content
to keep it relevant to your needs.
The Blue Book 2012
Davis Langdon, An AECOM Company Contents
Australian Market Conditions 7

New Zealand Market Conditions 19
Global Markets 27
Cost Data and Market Analysis 41
Industry Compliance and Trends 59
BIM and IPD 71
Sustainability 79
Working Calendars
93
Directory of Key Offices 105
1
AUSTRALIAN MARKET
CONDITIONS
Davis Langdon, An AECOM Company Page 7
Australian Construction Output 8

Residential Construction Activity 9
Davis Langdon Construction Sentiment 10
Workload Expectations vs Building Activity
Oil and Gas 12
Mining 13
Transportation 14
Labour Force and Productivity 16
Employment Growth and Industrial Relations 17
Page 8 The Blue Book 2012
Australian Construction Output
Total Building Work Done 2010-2011

2% 1%
3%
6% Total Construction Work Done
28% 2010-2011
15%
Type of Work A$b % of total
Residential Building 47 28%
Non-residential Building 35 21%
Engineering Construction 85 51%
Total Construction Work Done 167 100%
21% 24%
Total FY10 (A$m) Total FY11 (A$m) Change in FY11 FY11 % of Total
VIC 22,320 22,871  2% 28%
NSW 18,523 19,250  4% 24%
QLD 17,621 17,025  -3% 21%
WA 11,263 12,393  10% 15%
SA 4,805 5,078  6% 6%
ACT 2,236 2,674  20% 3%
TAS 1,305 1,386  6% 2%
NT 865 834  -3% 1%
TOTAL 78,938 81,511  3% 100%
Non-residential Building Activity by State

2008-2009 2009-2010 2010-2011
2% 1% 2% 1% 2% 1%
4% 4% 4%
5% 7% 7%
25% 27% 25%
14% 13% 15%
26% 23% 24% 22% 23% 23%
Change in Change in Change in

FY08 (A$m) FY09 (A$m) FY10 (A$m) FY11 (A$m)
FY09 FY10 FY11
NSW 9,178 8,400 9,848 8,699  -8%  17%  -12%
QLD 8,905 7,827 8,004 8,131  -12%  2%  2%
VIC 7,186 8,951 8,776 8,017  25%  -2%  -9%
WA 1,559 4,595 4,816 5,391  195%  5%  12%
SA 3,915 1,782 2,399 2,294  -54%  35%  -4%
ACT 438 1,212 1,290 1,347  177%  6%  4%
TAS 445 523 633 622  18%  21%  -2%
NT 1,150 449 451 427  -61%  0%  -5%
TOTAL 32,776 33,739 36,216 34,927  3%  7%  -4%
Source: ABS 8755.0
Residential Construction Activity
Construction activity in the multi-unit Building approvals for multi-unit residential

residential sector has experienced weaker in Victoria continued to grow strongly, with
conditions in 2011, and this trend is over 15,000 dwelling units approved in the
projected to continue in 2012. past year.
According to the State of Supply Report, Looking ahead, NHSC data projecting
published by the National Housing dwelling demand in 2010-2030 suggests
Supply Council (NHSC) in December 2011, that demand for separate houses will grow
underlying demand for housing grew by an by 36 percent – proportionately
estimated 159,000 dwellings. New South less than for other types of dwellings such
Wales and Queensland have the strongest as flats and semidetached, which are
underlying demand, with 73,000 and 61,000 projected to grow by 41 percent and 42
dwellings respectively. percent respectively.
Multi-unit Residential Building Approvals

No. of Dwelling Units Value (A$m)
18,000 4,500
16,000 4,000
14,000 3,500
12,000 3,000
10,000 2,500
8,000 2,000
6,000 1,500
4,000 1,000
2,000 500
0 0
2000-2001
2010-2011
2002-2003
2001-2002
2007-2008
2006-2007
1999-2000
2009-2010
2003-2004
2004-2005
2005-2006
2008-2009
NSW VIC QLD WA NSW (RHS) VIC (RHS) QLD (RHS) WA (RHS)
Source: ABS 8731.0

Source: ABS 8731.0
Projections of Underlying Demand by Dwelling Structure,
Medium-Growth Scenario 2010–2030
12
No. of dwelling units (millions)
10
0
2010
2012
2015
2020
2025
2030
Separate House Semidetached Flat Other
Source: National Housing Supply Council 2011

Davis Langdon Construction Sentiment Workload

Expectations vs Building Activity
In the final quarter of 2011, the key indicator New South Wales’s and Victoria’s respective
of industry sentiment in Davis Langdon’s outlooks have progressively deteriorated.
Construction Sentiment Survey, Net Our December Survey found only 5 percent
Workload Expectation, dropped further of participants in New South Wales expect
into negative territory to a reading of -20 an increase in work for the industry in 2012.
percent. Such a figure underscores the At the start of 2011, there was a healthier
weak sentiment seen throughout 2011, and proportion of New South Wales and Victorian
reflects the larger proportion of participants respondents expecting improved workloads.
expecting workloads to reduce in 2012.
In Queensland, industry sentiment has
The 2011 Sentiment Net Workload almost returned to pre-flood levels,
Expectation trend continues to provide encouraged by the influx of engineering
an advanced projection of the Australian work and the prospect of flow-on projects.
Bureau of Statistics (ABS) building activity Heavy-engineering private-sector work in
values. Following a slight rise in building Queensland – valued at nearly $10 billion in
work commenced during the June quarter, the year 2010-11 – was almost double the
preliminary activity figures suggest further value of previous years. The majority of this
declines are likely in the last two quarters is resources related, and there is yet to be
of 2011. any real impact on building activity.
While there has been a real slowing in the A similar story can be found in Western
building sector, engineering construction Australia, where the value of engineering
has strengthened considerably. Evident in work almost doubled – from $5.5 billion
the contrasting conditions emerging from in the September 2010 quarter to $10.7
the different states, sentiment in New South billion in the September 2011 quarter. The
Wales and Victoria has softened over 2011, state’s building activity, however, continues
while the resource-rich Queensland and to flatline, with little movement from the $3
Western Australia have improved. billion completion mark recorded quarterly
over 2010 and 2011.
Sentiment Workload Expectations and Change in Building Work Values

% %
20 80
15 60
10 40
5 20
0 0
-5 -20
-10 -40
-15 -60
-20 -80
Sep 2011
Mar 2011
Jun 2011
Dec 2011
Jun 2006
Sep 2006
Jun 2007
Jun 2008
Dec 2006
Dec 2007
Jun 2009
Sep 2007
Sep 2008
Sep 2009
Mar 2008
Sep 2010
Mar 2007
Mar 2010
Jun 2010
Mar 2009
Dec 2008
Dec 2009
Dec 2010
ABS Work Commenced (LHS) Sentiment Net Workload Expectation* (RHS) Source: Davis Langdon Research,
measures the expected change in workload
ABS Preliminary Work Done (LHS) levels over the next 12 months ABS 8755.0 & 8752.0
Engineering vs Building Work Done (Selected States)
A$b
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Sep 2005
Dec 2005
Sep 2006
Dec 2006
Sep 2007
Dec 2007
Sep 2008
Dec 2008
Sep 2009
Dec 2009
Sep 2010
Dec 2010
Sep 2011
Jun 2005
Jun 2006
Jun 2007
Jun 2008
Jun 2009
Jun 2010
Jun 2011
Mar2005
Mar2006
Mar2007
Mar2008
Mar2009
Mar2010
Mar2011
NSW Engineering QLD Engineering VIC Engineering WA Engineering SA Engineering
NSW Building QLD Building VIC Building WA Building SA Building
Source: ABS 8755.0
Engineering Yet to Be Done
June 2008 June 2011

<1% <1% 2% 1% <1% <1%
14% 8%
6%
7%
23%
47%
61%
27%
<1%
3%
NSW QLD WA NT
At June 2008 At June 2011
VIC SA TAS ACT Change
(A$m) (A$m)
NSW 7,452 8,469  14%
VIC 3,509 5,836  66%
QLD 14,048 24,951  78%
SA 1,366 1,487  9%
WA 24,202 64,691  167%
TAS 206 691  235%
NT 1,276 337  -74%
ACT 33 402  1116%
TOTAL 52,090 106,864  105% Source: ABS 8762.0
Oil and Gas

Construction forecasts in the oil and gas According to Australian Bureau of
markets remain strong despite global Agricultural and Resource Economics
volatility. The Reserve Bank of Australia and and Sciences (ABARES) figures released
the Federal Treasury are both attributing in November, the value of planned oil and
Australia’s forecast 3 percent-plus GDP gas projects across Australia is over $31
growth rate in 2011–12 largely to high billion. Western Australia is the lead state,
demand-side factors in the oil, gas and accounting for $15 billion – nearly half of
mining markets. This is also reflected in the construction activity in dollar terms
figures forecast by the Australian Industry – followed by Queensland, with $7 billion.
Group, which predict a growth of 21 percent As with other resource-driven sectors of
in oil and gas projects during 2012. the economy, supply constraints such
as access to labour and infrastructure
bottlenecks may slow production over the
coming year.
Planned Value of Oil and Gas Value of Oil and Gas Projects by State
Projects by Project Type
1%
10% 69% A$b
16
14
12
10
20%
8
6
4
2
0
TAS
VIC
QLD
NSW
NT
WA
Project Type (A$b) Oil and Natural Gas

Oil and Natural Gas 21.8
Gas-Fired Electricity Generation
Gas-Fired Electricity Generation 6.5
Gas Pipelines*
Gas Pipelines* 3.1
Other** 0.3 Other**
Note: Figures are as at November 2011. Projects with no

value listed have been excluded.
*Gas pipelines include coal-seam gas.
**Other includes oil-fired electricity generation and

petroleum processing.
Source: ABARES 2011, BREE 2011

Mining
According to the Federal Treasury, the is projected to build $17 billion worth of
mining sector is set for continued growth in projects.
2012, built on strong demand from the Asia
Mining companies are increasingly
Pacific region. In the Mid-year Economic
pushing back delivery dates for new
and Fiscal Outlook 2011–12, Treasury
projects because of capital, labour and
projected the mining sector will invest over
infrastructure constraints. The year 2012 is
$82 billion during the 2011–12 financial
projected to see $5 billion of new projects
year. This figure includes existing projects
commence construction, which, according
undertaken pre-2011.
to ABARES research, is forecast to rise
As at November 2011, ABARES data sharply to almost $30 billion in 2014. The
indicated that 62 percent of the value of strongest sectors for development are
total planned mining projects in Australia is expected to be the iron-ore and black-
from Western Australia – with an estimated coal markets, with iron-ore representing
$44 billion of new projects approved 83 percent of future mining exploration
for development. This figure is almost development up to 2016.
three times that of Queensland, which
Planned Mining Projects by Mining Projects by Expected Start Date

State and Value
<1% A$b
4% <1% 30
4%
5%
25
25% 62%
20
15
10
0
2013
2014
2015
2011
2012
2016
Iron Ore Copper

Value of Projects (A$b) Black-Coal Mining Gold
WA 44.2 Nickel Uranium
QLD 17.8 Lead-Zinc-Silver Other Commodities*
NSW 3.6
NT 2.7
SA 2.7
TAS 0.4
VIC 0.1
TOTAL 71.3 *Other commodities include aluminium, tin, bauxite and
mineral sands.
Note: Figures are as at November 2011. Projects with no Note: Figures are as at November 2011. Projects with no
value listed have been excluded. value listed have been excluded.
Source: ABARES 2011
Transportation
In FY 2011, the value of transport-related percent) and non-residential building (21

construction work done (roads, railways, percent). The majority of these transport
bridges and harbours) in Australia totalled projects were located in New South Wales,
$26.8 billion. This equated to 31 percent Queensland and Western Australia, with
of total engineering work done and transport construction values in FY 2011
was a considerable proportion of total totalling $7.9 billion, $6.7 billion and $6.0
construction work done in Australia (16 billion (respectively).
percent) – compared to residential (28
Total Value of Transport Infrastructure Engineering Construction Work Done

$b
20
18
16
14
12
10
8
6
4
2
0
1990-1991
2004-2005
1994-1995
2002-2003
1986-1987
1992-1993
2000-2001
2006-2007
2008-2009
1988-1989
1996-1997
1998-1999
Roads and Bridges
Railways
Ports and Harbours
Number of Employees by Sector

’000 ’000
80 250
70
200
60
50 150
40
30 100
20
50
10
0 0
1991
2001
2003
1993
1985
1987
1989
1995
1997
1999
2005
2007
2009
Rail Other
Water Roads (RHS)
Air and Space Source: BITRE, ABS 2011

Roads and Bridges Infrastructure Engineering Construction Work Done*

A$b
20
18
16
Growth of 123%
14
12
10
8
6
4
2
0
1990-1991
2004-2005
1994-1995
2002-2003
1986-1987
1992-1993
2000-2001
2006-2007
2008-2009
1988-1989
1996-1997
1998-1999
Work done by the Private Sector for the Private Sector
Rail Infrastructure Engineering

Work done by the Private Construction
Sector for the Public Sector Work Done*
A$b Work done by the Public Sector
5.0
4.5
4.0 Growth of 439%
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
1990-1991
2004-2005
1994-1995
2002-2003
1986-1987
1992-1993
2000-2001
2006-2007
2008-2009
1988-1989
1996-1997
1998-1999
Work done by the Private Sector for the Private Sector
Ports Work
anddone
Marine Infrastructure
by the Private Engineering
Sector for the Public Sector Construction Work Done*
A$b Work done by the Public Sector
2.5
2.0
Growth of 318%
1.5
1.0
0.5
0
1990-1991
2004-2005
1994-1995
2002-2003
1986-1987
1992-1993
2000-2001
2006-2007
2008-2009
1988-1989
1996-1997
1998-1999
Work Done by the Private Sector for the Private Sector
Work Done by the Private Sector for the Public Sector *Note: Adjusted by Chain Volume Index
Work Done by the Public Sector Source: BITRE, ABS 2011
Labour Force and Productivity
When put in historical context, Australia’s United States. In the Great Depression, for
recent unemployment rate of close to 5 example, the unemployment rate reached
percent is comparatively low. Compared 22 percent in the UK and close to 25
to previous downturns, such as the percent in the US. But in the most recent
Great Depression (when the country’s downturn, Australian unemployment has
unemployment rate rose beyond 28 remained well below the levels of job losses
percent) and the 1990s recession (when witnessed in the UK and the US.
it exceeded 10 percent), Australia has
Consequently, Australia is now in a far
remained relatively sheltered from difficult
better position to weather any future
labour-force eras.
periods of economic instability. The UK and
In these earlier periods, the levels of the US are still sitting at much higher levels
unemployment in Australia were also higher of unemployment – approximately 8 and 9
than those in the United Kingdom and the percent respectively.
Comparative Unemployment Rates – Annual Averages, 1900-2011

%
30
Great
Depression
25
20
Post-WWI
15
Global
economic
Oil shock crisis
10
Post-WWII
5
1990s
recession
0
1900
1906
1912
1918
1924
1930
1936
1942
1948
1954
1960
1966
1972
1978
1984
1990
1996
2002
2008
United States Australia United Kingdom
Source: ABS, Bureau Labor Statistics, National Bureau of

Economic Research, National Statistics Office
150
250
50
100
200
300
350
400
450
0
60
100
0
20
80
40
120
1998-1999
Number of
Carers and Aides
Employees ’000
1999-2000 Medical Practitioners and Nurses
Construction
All Industries
Construction Trades
2000-2001
Electrotechnology and Telecommunications Trades
Education Professionals
2001-2002
Davis Langdon, An AECOM Company
Hospitality, Retail and Service Managers
2002-2003
Sales Assistants and Salespersons
General-Inquiry Clerks, Call Centre, Receptionists

2003-2004
Engineers
2004-2005 Legal, Social and Welfare Professionals
Hospitality Workers
2005-2006
Engineering, ICT and Science Technicians, Inspectors
Health Diagnostic and Therapy Professionals

2006-2007
Numerical Clerks
Employment Growth and Industrial Relations
Working Days Lost to Industrial Disputes per 1,000 Employees

2007-2008 Health and Welfare Support Workers
Business, Finance and Human Resource Professionals

2008-2009
Drivers and Storepersons
Projected Employment Growth to 2015-16 – Top 20 Occupational Clusters
2009-2010 Automotive and Engineering Trades
Corporate Managers
2010-2011
Food Trades
Source: ABS 6321

Source: DEEWR Employment Projections
Page 17
2
NEW ZEALAND
MARKET
CONDITIONS
New Zealand Construction Output 20

New Zealand Economic and Construction Outlook 21
Christchurch Rebuild 22
New Zealand Construction Sentiment Survey and 23
Regional Activity
Transport 24
Energy 25
New Zealand Construction Output
New Zealand Building Work Put in Place
NZ$m
9,000
8,000 Growth of 120%
7,000 in 7 years
6,000
5,000
4,000
3,000
2,000
1,000
0
1991
2001
2011
2002
2003
2007
1992
1993
1997
2008
2009
2006
2000
2005
1990
2010
1994
1995
1998
1999
2004
1996
Total Residential Buildings
Total Non-residential Buildings
New Zealand Construction Activity by Sector
2008-2009 2009-2010 2010-2011
14% 54% 13% 57% 15% 55%
6% 8%
7%
15%
13% 12%
3%
4% 4%
3%
3% 3% 4%
4% 3%
FY09 FY10 FY11 Change in Change in Change in

(NZ$m) (NZ$m) (NZ$m) FY09 FY10 FY11
Residential 6,373 6,102 5,791  -24%  -4%  -5%
Accommodation 416 360 311  -3%  -13%  -14%
Hospital & Nursing
342 357 463  -27%  4%  30%
Homes
Factories & Industrial 505 296 382  4%  -41%  29%
Commercial 1,702 1,358 1,254  2%  -20%  -8%
Education 668 805 800  16%  20%  -1%
Miscellaneous 1,680 1,442 1,589  17%  -14%  10%
Total 11,686 10,720 10,590  -13%  -8%  -1%
Source: Statistics New Zealand BAS 008AA

New Zealand Economic and Construction Outlook
In late 2011, New Zealand returned its The strong New Zealand dollar has led to
government to office for a further three a reduction in investment in infrastructure
years and was faced with considerable to support exports. Until export volumes
economic uncertainty. increase and the value of the New Zealand
dollar drops, it is probable that construction
A large portion of public funds will be
in this sector will remain quiet.
used for rebuilding following the recent
earthquakes in Christchurch. Construction Towards the end of 2011, inflation dropped
of vertical infrastructure for the public for the first time since 2008. If this trend
sector in areas outside Christchurch, continues during 2012, the Reserve Bank is
particularly in Auckland and Wellington, likely to maintain current interest rates.
is consequently expected to slow. There
Over the past three years, contractors have
is more likely to be a consolidation and
absorbed price increases and cut profit
rationalisation of property portfolios, and,
margins to win work in a very competitive
as a result, there is little chance that the
market. This practice is expected to
currently slow commercial market will
gradually cease and could add to
pick up.
inflationary increases for the construction
Housing construction in New Zealand is at sector. Construction costs during 2012
its lowest point since 1993. Immigration has are forecast to remain steady, with some
declined, with only a marginal increase in rises likely in certain regions (such as
population during 2011. Christchurch) during 2012.
The low demand for housing suggests that
the residential construction sector will
remain flat in 2012, excluding works in
Christchurch. However, the lack of certainty
around seismic stability in Christchurch will
most likely result in lower levels of housing
construction in 2012.
Christchurch Rebuild
In late 2011, major earthquakes were Restoring financial-sector confidence to

still occurring in Christchurch. Continued fund activity in the city will be the next
seismic activity and uncertainty as to if or significant step after the implementation of
when there could be further earthquakes proper planning and strategic frameworks.
have slowed construction progress in The insurance industry will also need to
the region. be willing to offer long-term insurance for
new buildings. Private-sector investment
The majority of works undertaken in demand for rental space will also depend
2011 were repairs to key infrastructure on successfully insuring and financing
and public buildings to enable normal space that meets tenant expectations and
commercial and domestic activities to demands for that region.
continue. It is expected there will be a
three- to four-year time lag on house Looking ahead, the timetable for
repairs. Christchurch’s reconstruction will remain
uncertain in 2012. Reductions in seismic
Issues relating to the rebuild in the activity and further financial and insurance
Christchurch central business certainty will be crucial to bringing
district include: proposals for construction forward in the
−− completion of demolition of buildings coming years.
damaged by previous earthquakes
Repair works in the Christchurch region
−− establishment of permanent and fully are placing significant pressure on
repaired infrastructure (drains, utilities, construction resources such as labour and
roads, bridges, tunnels, etc.) materials. This has led to localised inflation
−− a new district plan for central in the Christchurch construction sector,
Christchurch governing the rules for which was estimated at 15 percent in 2011.
rebuilding the centre of the city. This inflationary pressure is expected
to continue in 2012, until demand in the
construction services market cools.
New Zealand Construction Sentiment Survey and Regional Activity
Davis Langdon’s Sentiment Survey with these issues; higher premiums to

research shows many in the New Zealand fund increased reinsurance costs are
property and construction industry remain expected nationwide.
concerned about workload volatility. There
In the third-quarter Sentiment Survey
is widespread frustration with insurance
for 2011, 75 percent of Christchurch
and bureaucratic delays in getting work
participants expected a boost in
underway on the Christchurch rebuild.
earthquake-related business, whereas
Without a more continuous stream of
Wellington-based participants were not
work, businesses are finding it difficult to
expecting as much work. One respondent
maintain a sufficient skills base for the
explained that the net effect of the rebuild
peak workload periods.
work would not be as great: “Canterbury
Respondents worry that cut-throat work increases will be offset to some
tendering will lead to problems further extent by reduced volumes elsewhere in
down the track and that an upturn in the the country.”
industry will depend on renewed confidence
Many in the industry continue to expect
in the private sector. Much of the industry
considerable escalation in construction
is stuck in a state of limbo, with what one
costs over the coming year, although the
Christchurch participant described as
outlook is not as extreme as in our June
“too many unknowns around insurance,
2011 Sentiment Survey. When construction
funding and decisions around where the
work gets underway in Christchurch,
Government departments will
demand for resources (both people and
be established”.
materials) will increase. Our Sentiment
The cost of reinsurance means some Survey research in the third quarter of 2011
projects may not be feasible, while others showed 58 percent of respondents expect
have discovered under-insurance problems, prices to rise by more than 10 percent
such as exclusions based on land damage over the coming year in the Christchurch
caused by soil liquefaction. However, construction market.
Christchurch is not the only area to be faced
Earthquake Impact on Future Business Levels

%
80
70
60
50
40
30
20
10
0
-10
-20
Reduce >10% Reduce 0-10% None Increase 0-10% Increase >10%
Auckland Wellington Christchurch

Source: Davis Langdon Research
Transport
The New Zealand Government’s plan for According to the National Infrastructure
infrastructure, released in 2011 by the Unit, light passenger travel by road is
National Infrastructure Unit, outlines a projected to increase by 14 percent in the
strategy going forward to 2030. The plan coming 20 years.
highlights six principles that act as a
baseline to analyse current performance, Looking ahead, transport spending,
including investment analysis, resilience, particularly in earthquake-affected areas,
funding mechanisms, accountability and is projected to increase in 2012, limiting
performance, regulation, and coordination. scope for investment in other priority
areas such as Auckland’s CBD rail loop and
Transport was highlighted throughout greater road-integration projects.
the report as a key area for improvement,
particularly in earthquake-affected regions.
The New Zealand Government is aiming
to expand funding to transport to improve
its 16 ports, 36 regional and international
airports, 4,000 km of rail tracks, and 94,000
km of roads.
Average Estimated Value of Large Transport Infrastructure

Projects to Be Considered for Funding Beyond 2009-2012
NZ$m
8,500
8,000
1,000
500
0
Hawke’s Bay
Wellington
Taranaki
Southland
Auckland
Waikato
Canterbury
Bay of Plenty
West Coast
Note: Does not include roads of national significance

Source: NZ Infrastructure Unit 2010
Energy
Energy supplies in New Zealand are that by 2030, consumer demand for oil and
projected to experience moderate growth electricity will increase, while gas demand
in supply in 2012. Oil, geothermal and is set to decline. Demand for coal power
hydro will experience the strongest growth, will remain generally steady through the
with traditional gas and coal moderating period. The New Zealand Government has
over the period. Consumer demand for been investing heavily in renewable energy
energy products will experience strong sources such as hydro and geothermal,
growth in almost all sectors, according to which are projected to experience strong
the New Zealand Ministry of Economic growth over the next 20 years.
Development’s projections. It is estimated
Total Primary Energy Supply

Gross PJ
300
250
200
150
100
50
0
2002
2004
2006
2010
1978
1982
1992
1996
1998
2000
2008
1976
1984
1990
1994
1980
1974
1986
1988
Hydro Other Renewables* Gas *Other Renewables in this instance

Geothermal Coal Oil refers to wind, bioenergy and solar
Total Consumer Energy Demand Projection

Gross PJ
350
Projection
300
250
200
150
100
50
0
2010
2025
2000
2005
2020
2015
2030
1995
1990
Electricity Oil Geothermal Source: New Zealand Ministry of

Coal Gas Other Renewables Economic Development
3
GLOBAL
MARKETS
Global 28
Asia 30
US 32
Europe 34
Middle East 36
Africa 38
Global
Since 2008, the global economic outlook with growing downside risks, point
has remained pessimistic. It may enter “a to challenging times for the
dangerous new phase”, according to the construction industry.
International Monetary Fund (IMF). The
IMF expects global growth to moderate IHS is projecting construction growth to
to 4 percent during 2012. accelerate more in Asia over the coming
decade – and by the same annual rate
The uneven nature of economic growth as North America and Europe combined
and a decline in confidence, combined by 2020.
Global Construction Spending 2010

US$b
900
800
700
600
500
400
300
200
100
0
US
China
Japan
Germany
Brazil
France
Italy
UK
Korea
India
Mexico
Australia
Spain
Other
Share of Construction Spending by Region 2010-2020 (Forecast)
2% 2% 2% 2%
4% 4%
4% 5%
19% 37% 19% 2020 43%

2010
32% 25%
2010 2020
Asia 37% 43% 
Western Europe 32% 25% 
North America 19% 19% 
Eastern Europe 4% 5% 
Latin America 4% 4% 
Middle East 2% 2% 
Africa 2% 2% 
Source: IHS Global Insight 2010
Global
Developing economies in Eastern Europe, Private-sector demand will need to
Asia and South America have rebounded increase dramatically to replace public
most strongly, although this rate of growth demand, which is still running at
is expected to moderate over 2012 because historically high levels.
of reduced demand for commodities and
other goods. Developing economies provide pockets of
optimism – growth in construction spending
Addressing downside risks such as the in the developing world is set to overtake
European debt crisis will be essential to the developed world by 2020, according to
restoring confidence. Increased US growth Goldman Sachs.
will be vital to generating more jobs; to
achieve this, the economy will need to grow
by 3.5 percent (IMF).
Change in Global Construction Spending 2010-2011

%
10
-5
-10
US
China
India
Brazil
Australia
UK
Other
France
Mexico
Germany
Korea
Japan
Italy
Spain
Source: IHS Global Insight 2010
Share of Construction Spending by Development Status 2005-2020 (Forecast)
65% 2005 35% 45% 2020 55%
Developing Countries
Developed Countries
Source: Global Construction Perspectives
Asia
Asia’s growth is forecast to moderate in percent. This will continue to fuel strong
2012 to 7.2 percent, according to a late domestic and regional demand, despite
2011 report by the Asian Development global uncertainty dampening sentiment.
Bank. This decline in growth is linked to Demand for infrastructure, energy and
weaker external demand for goods and utility construction will also drive strong
services and inflationary pressures in some growth in the region – according to IHS
Asian countries, particularly Indonesia, Global Insight, investment will grow by an
India and China. Employment growth is estimated 8 percent in the coming year. This
forecast to remain steady in the region, growth figure is predicted to remain steady
remaining at historical lows of less than 6 throughout the remainder of the decade.
Unemployment Rates
% Forecast
14
12
10
0
2002
1982
1992
2008
1996
1998
2010
2012
2014
2016
2006
2000
1984
1980
1986
1988
1990
1994
2004
China Australia
Japan New Zealand
Vietnam
Gross Domestic Product per Capita

US$ ’000 Forecast US$ ’000
50 80
45 70
40
60
35
30 50
25 40
20 30
15
20
10
5 10
0 0
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
China India
Japan (RHS) Australia (RHS)
Vietnam New Zealand Source: IMF

Asia
Top 10 Construction Markets in 2009 and 2020 Asia is forecast
Market Size in World Market Predicted Top
to represent 38
Country Change percent of global
2009 (US$b) Share in 2009 10 in 2020
US 1,132 17.4% China  infrastructure
China 1,034 13.7% US  expenditure in
Japan 592 7.9% India  2011-2021.
Germany 303 4% Japan 
Spain 292 3.9% South Korea 
France 270 3.6% Germany 
Italy 262 3.5% Spain 
South Korea 248 3.3% Russia 
India 247 3.3% UK 
UK 243 3.2% Canada 
Quality of Infrastructure
Hong Kong Quality of overall
Japan infrastructure in
South Korea Hong Kong is ranked
Malaysia #1 in Asia and #4 in
Taiwan
the world.
Thailand
China
Indonesia
India
Vietnam
Australia
New Zealand
0 1 2 3 4 5 6 7
Low Quality High Quality
Population Projection % Change 2011-2016 India and China’s

% combined population
10 8.8% is equivalent to
8
approximately four
6.8%
6.1% times the combined
6
populations of the
4 2.5%
US and eurozone.
2
-1.1%
0
Malaysia
Vietnam
China
Japan
India
-2
Sources: Global Construction 2020 Report, Global Competitiveness Report 2011-2012, IMF
US
US economic growth throughout 2011 jobs in the coming years. It is extremely
has been hampered by persistently likely that the Federal Reserve will maintain
high unemployment. The US Treasury is an expansionary monetary policy setting
projecting real GDP growth of 3 percent throughout 2012. Public expenditure on
in 2012. Unemployment levels in the US non-residential construction has declined
are projected to trend downwards in 2012. from the 2007 peak of $8 billion to $3 billion
While this is positive, economists predict in 2011. Following the US Treasury debt-
that the US economy will need to grow in ceiling negotiations in 2011, public-sector
excess of 3.5 percent to continue generating demand is set to decline further.
Value of Construction Work Put in Place
US$b
16,000
14,000
Peak to
12,000 Trough
-31%
10,000
8,000
6,000
4,000
2,000
0
2002
2003
2007
2008
2010
2009
2005
2006
2004
Public: Non-residential
Public: Residential
Private: Non-residential
Private: Residential Source: US Census Bureau

US
Unemployment Rates
% Forecast
12
10
2002
1982
1992
2008
1996
1998
2010
2012
2014
2016
2006
2000
1984
1980
1986
1988
1990
1994
2004
US
Australia
New Zealand

$US ’000 Forecast
90
80
70
60
50
40
30
20
10
0
2002
1982
1992
2008
1996
1998
2010
2012
2014
2016
2006
2000
1984
1980
1986
1988
1990
1994
2004
US
Australia
New Zealand
Source: IMF
Europe
The IMF projects that the eurozone will eroding confidence and exposing the world
grow by 0.4 percent in 2012, with the economy to considerable downside risk.
strongest growth coming from Germany, Unemployment in Europe remains high at
France and Britain. The European debt 9.7 percent, leading to lower productivity
crisis is having a significant global impact, and higher public expenditure.

US$ ’000 Forecast
80
70
60
50
40
30
20
10
0
2002
1982
1992
2008
1996
1998
2010
2012
2014
2016
2006
2000
1984
1980
1986
1988
1990
1994
2004
France Ireland UK
Germany Italy Australia
Greece Spain New Zealand
Unemployment Rates
% Forecast
25
20
15
10
0
2002
1982
1992
2008
1996
1998
2010
2012
2014
2016
2006
2000
1984
1980
1986
1988
1990
1994
2004
France Ireland UK
Germany Italy Australia
Greece Spain New Zealand Source: IMF

Europe
Taxes on Property as a Percentage of GDP (2009)
%
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
New Zealand
Ireland
France
Spain
Australia (2008)
Greece
UK
Portugal
Italy
Germany
Source: OECD
Change in Construction Output and GDP 2010-2011

%
15
10
-5
- 10
- 15
- 20
Spain
Ireland
Hungary
Portugal
Czech Republic
Slovak Republic
Italy
EC-19
Austria
Finland
Switzerland
Denmark
Sweden
Netherlands
Germany
France
Belgium
Norway
Poland
UK
GDP
Construction Output
Source: Eurofer
Middle East
Middle East economic growth is predicted certainty in the region. Nations such as
to grow by 3.7 percent in 2012, according Libya and Egypt have experienced declines
to a World Bank report. Oil-exporting in capital inflows and tourism. With new
countries will experience the strongest governments expected to be in place in
growth, owing to higher than average some regions in early 2012, economic
energy prices. External factors such as reform measures tackling labour markets,
the European debt crisis and slow US education systems and the general
growth are indirectly affecting external business environment will be top priorities
demand. Oil-importing countries that have for improving longer-term growth.
been recently affected by political and
economic transformations are advancing
slowly, with a marked increase in economic

US$ ’000 Forecast
120
100
80
60
40
20
0
2002
1982
1992
2008
1996
1998
2010
2012
2014
2016
2006
2000
1984
1980
1986
1988
1990
1994
2004
Qatar Oman Iraq
UAE Saudi Arabia Syria
Kuwait Iran Australia

New Zealand
Source: IMF
Middle East
Value of Projects Planned or Underway Value of construction
Jan 2011 Jan 2012
projects planned or
Country Change underway in the Gulf
(US$m) (US$m)
Bahrain 80,142 63,907 -20.3%  Cooperation Council
Kuwait 152,171 176,761 16.2%  (GCC) is $1.8 trillion.
Oman 99,969 117,091 17.1% 
Qatar 233,213 217,576 -6.7% 
Saudi Arabia 673,482 725,938 7.8% 
UAE 712,116 588,431 -17.4% 
GCC 1,951,093 1,889,704 -3.1% 
Iran 308,743 310,009 0.4% 
Iraq 257,872 363,109 40.8% 
Gulf Total 2,517,708 2,562,822 1.8% 
Quality of Infrastructure Quality of overall

infrastructure in the
UAE
Oman
United Arab Emirates
Saudi Arabia
is ranked #1 in the
Qatar Middle East and #9
Kuwait in the world.
Syria
Iran
New Zealand
Australia
0 1 2 3 4 5 6 7
Low Quality High Quality
Population Projection % Change 2011-2016 The population of

25%
Qatar is forecast
to increase by
20% 22 percent by 2016.
15%
10%
5%
0%
Qatar
Oman
UAE
Iraq
Saudi Arabia
Iran
Syria
Sources: MEED: Middle East Business Intelligence, The Global Competitiveness Report 2011-2012, IMF
Africa
Consistent with the trend in other Unemployment in Africa is approaching
developing regions, Africa is experiencing a historically low level of less than 15
strong GDP growth, with the IMF predicting percent. Consequently, strong growth
economic growth of 5.8 percent in 2012. and lower unemployment are leading to
Despite global uncertainty, and reliance by concerns about inflationary pressures
African economies on trade with Europe, in 2012. Construction demand in the
African GDP is strong, owing to rising residential and infrastructure sectors
commodity prices and improved domestic is projected to increase, to meet the
demand as political strife declines across higher demand for resources from
the continent. developed regions.
Private Investment Value in Sub-Saharan Infrastructure
US$b
16
14
12
10
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Energy Transport
Telecommunications Water and Sewerage
Private Investment Value in African Infrastructure

US$b
7
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Algeria Angola Kenya Morocco
Nigeria South Africa Tunisia Egypt Source: World Bank and PPIAF
Africa
US$ ’000 Forecast US$ ’000
16 80
14 70
12 60
10 50
8 40
6 30
4 20
2 10
0 0
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Algeria Nigeria Tunisia Libya New Zealand (RHS)
Morocco Egypt Australia (RHS) South Africa
Unemployment Rates
%
35 Forecast
30
25
20
15
10
0
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Algeria Egypt Morocco Tunisia
Nigeria South Africa New Zealand Australia
Source: IMF, World Economic Outlook Database, September 2011

4
COST DATA
AND
MARKET
ANALYSIS
International Building Costs 42

International Building Cost Comparisons 43
Australian Construction Market Outlook 44
Davis Langdon Tender Price Index 45
Australian Property Market – Commercial Overview 46
Commercial Construction Costs 47
Residential Construction Costs 48
Industrial Construction Costs 49
Tourism Construction Costs 50
Retail Construction Costs 51
Health and Aged Care Construction Costs 52
Education Construction Costs 53
Major Rates for ANZ 54
Australian Labour Material Ratios 55
Property Taxes 56
International Building Costs

US$/m²
Johannesburg
San Francisco
Kuala Lumpur
Los Angeles
Hong Kong
Abu Dhabi
Singapore
Auckland
New York
Bangkok
Bahrain
London
Sydney
Manila
Beijing
Doha
Residential
Average 2,845 1,770 1,305 1,350 1,370 2,145 567 1,695 487 788 832 940 3,500 3,600 3,700 2,420-3,060
Multi-unit
High Rise
Luxury 3,265 2,670 1,625 1,800 2,000 2,370 1,004 2,785 1,129 995 1,166 1,640 4,200 4,300 4,500 3,220-4,420
Unit
High Rise
Individual 3,440 2,815 1,700 1,900 1,800 3,690 785 2,420# 1,015 1,090 971 1,650 3,400 3,500 3,800 3,600-5,430
Prestige
Houses
Commercial/
Retail
Average 3,160 1,605 1,185 1,500 1,785 2,175 959 2,100 794 783 753 1,250 3,700 3,900 4,000 2,800-3,520
Standard
Offices
High Rise
Prestige 3,585 1,850 1,305 1,750 1,995 2,640 1,283 2,340^ 1,165 1,020 987 1,600 4,200 4,400 4,500 4,000-5,120
Offices
High Rise
Major 2,530 1,110 1,260 1,400 1,225 N/A 1,295 2,500 967 890 937 1,180 2,800 3,100 3,200 1,830-2,390
Shopping
Centre
(CBD)
Industrial
Light-Duty 685 450 650 650 925 1,140 N/A 1,130 464 400 602 430 1,200 1,400 1,200 850-1,070
Factory
Heavy-Duty 865 575 730 870 1,050 1,245 N/A 1,375 551 445 N/A 600 1,600 1,800 1,900 1,410-1,760
Factory
Hotel
3 Star 3,265 2,220 1,890 2,400 2,100 2,615 1,180 2,585* 1,623 1,163 1,372 1,900 2,100 2,200 2,250 1,940-2,340
Budget
5 Star Luxury 4,530 2,880 2,660 3,130 3,350 3,320 1,941 3,470* 2,365 1,500 1,941 2,500 4,500 4,600 4,700 3,570-4,370
Resort Style 4,110 2,220 3,250 3,410 3,575 N/A N/A 3,470* 1,408 1,210 2,276 3,000 4,500 4,600 N/A N/A
Other
Multi-storey 895 535 650 550 725 985 461 770 302 435 351 460 850 880 900 510-860
Car Park
District 4,055 3,130 2,465 3,290 3,420 3,110 1,191 N/A 1,048 1,210 N/A 1,250 7,300 7,500 6,300 2,950-3,680
Hospital
Primary & 1,720 1,760 1,550 1,500 1,100 1,450 620 1,065 305 736 N/A 850 3,000 3,200 3,600 2,230-3,300
Secondary
Schools
US$1 = 0.93 1.25 0.38 3.67 3.64 7.80 6.47 1.24 3.00 45.50 29.88 7.00 1.00 1.00 1.00 0.63
Ex. rate at AUD NZD BHD AED QAR HKD RMB SGD MYR PHP THB ZAR USD USD USD GBP
July 2011
Prices exclude land, site works, professional fees, tenant fitout and equipment.
Hotel rate includes FF&E
Excl. GST/VAT
# Rate includes parking and minimal external works
^ Rate includes raised flooring and ceiling to tenanted areas
* Rate includes FF&E Source: Davis Langdon Research
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
0
500
1,000
1,500
2,000
2,500
3,500
4,000
US$/m
US$/m
US$/m
2
2
2
Manila Kuala Lumpur Kuala Lumpur
Bangkok Beijing Beijing
Kuala Lumpur Manila

Manila
Auckland Bangkok
Johannesburg
Johannesburg
Johannesburg
District Hospital
Bahrain
Bahrain
Doha
Hong Kong Abu Dhabi
Bahrain
Auckland Doha
Beijing
Abu Dhabi Singapore

Abu Dhabi
London Auckland
London
Hong Kong
Average Multi-unit High Rise
Major Shopping Centre (CBD)

Doha
Singapore
London
Sydney Sydney
Sydney
Los Angeles New York
Los Angeles
San Francisco Los Angeles San Francisco
New York San Francisco New York
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
US$/m
US$/m
US$/m
2
2
2
Manila Bangkok
Hotels
Manila
Beijing Manila
Kuala Lumpur
International Building Cost Comparisons
Industrial
Bangkok Kuala Lumpur
Auckland
Commercial
Kuala Lumpur Beijing

Johannesburg
Johannesburg Bahrain
Bahrain
High Rise
Bahrain Johannesburg
Sydney Auckland Abu Dhabi
Prestige Offices
Light-Duty Factory
5 Star Luxury
Abu Dhabi Abu Dhabi Auckland
Doha Hong Kong Doha
Hong Kong Doha Singapore
Singapore Hong Kong

Singapore
London Sydney
London
Los Angeles Los Angeles
3 Star Budget
Offices High Rise
Average Standard
Los Angeles
Sydney San Francisco
Heavy-Duty Factory
San Francisco San Francisco New York
New York New York London
Page 43
Australian Construction Market Outlook

By the end of 2011, a clearer picture had However, two consecutive rate cuts at the
emerged of the downturn occurring in end of 2011 (and the prospect of more
several parts of the Australian economy. in 2012) are expected to make the soft
This is certainly evident in the property and housing market more attractive to buyers
construction industry, where Davis Langdon and provide relief to other sectors reliant
research shows that the industry has had a on household spending.
consistently negative outlook during 2011.
Meanwhile, the property and construction
Looking towards 2012, the country’s industry is faced with reduced public
investment outlook continues to be spending and uncertainty about when
coloured by the heightened disarray in the resources boom will have a more
the eurozone, wholesale funding market marked effect in regions such as Perth and
contractions and an ongoing struggle for Brisbane. At the moment, these effects are
many non-mining sectors. Some private often isolated to a particular region and it
investment has been filtering through, is unclear whether we will see construction
but public spending is expected to tighten levels similar to those seen at the peak of
as governments attempt to rein in the boom in 2007-08.
spending following a decline in revenue
At the beginning of 2012, forecasts for
for some regions.
the Davis Langdon Tender Price Index are
This will leave many in 2012 waiting for therefore generally conservative, with most
the private sector to send more work their regions expecting very little price movement
way. Others will find they are lacking the on 2011 levels.
resources to deal with the influx of work in
their region, or are unable to meet the low
pricing expectations of clients.
Notes: Davis Langdon Tender Price Index (p39)
Indicates 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 for 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.
Davis Langdon Tender Price Index

Index
240
Forecast
220
200
180
160
140
120
1st Qtr 2004
3rd Qtr 2004
3rd Qtr 2005
3rd Qtr 2006
3rd Qtr 2007
3rd Qtr 2008
3rd Qtr 2009
3rd Qtr 2010
3rd Qtr 2011
3rd Qtr 2012

1st Qtr 2005
1st Qtr 2006
1st Qtr 2007
1st Qtr 2008
1st Qtr 2009
1st Qtr 2010
1st Qtr 2011
1st Qtr 2012

Adelaide Brisbane Cairns Canberra Darwin
Hobart Melbourne Perth Sydney
Melbourne Townsville
Townsville
Canberra
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
1st Qtr 2006 156 169 146 157 154 165 165 170 178
2nd Qtr 2006 158 172 147 158 156 169 171 172 182
3rd Qtr 2006 159 174 149 160 158 172 178 174 183
4th Qtr 2006 164 176 160 162 161 175 180 175 184
1st Qtr 2007 168 178 165 164 164 179 186 176 184
2nd Qtr 2007 169 180 167 167 168 181 189 178 186
3rd Qtr 2007 172 182 171 171 171 185 194 180 191
4th Qtr 2007 176 183 172 174 173 188 200 181 192
1st Qtr 2008 180 187 175 180 179 178 191 206 182 201
2nd Qtr 2008 185 191 178 183 191 180 194 211 185 211
3rd Qtr 2008 184 191 180 187 194 181 195 215 189 213
4th Qtr 2008 182 191 180 185 198 181 190 214 186 212
1st Qtr 2009 183 182 177 183 201 179 185 206 186 209
2nd Qtr 2009 183 180 174 179 202 178 185 204 186 205
3rd Qtr 2009 183 178 171 178 204 180 185 200 186 202
4th Qtr 2009 184 176 170 179 207 182 182 196 186 201
1st Qtr 2010 184 176 168 180 209 185 182 197 186 200
2nd Qtr 2010 184 177 168 182 212 187 184 176 187 200
3rd Qtr 2010 185 177 168 183 215 187 187 176 188 199
4th Qtr 2010 186 177 168 184 216 186 191 176 188 199
1st Qtr 2011 187 177 168 187 217 185 192 176 190 199
2nd Qtr 2011 187 177 168 187 219 183 193 176 190 200
3rd Qtr 2011 186 177 167 187 220 180 194 176 191 200
4th Qtr 2011 185 178 166 188 223 178 195 176 192 200
1st Qtr 2012 185 179 166 189 227 177 197 176 193 201
2nd Qtr 2012 186 180 168 190 230 177 198 178 194 202
3rd Qtr 2012 187 181 170 192 233 178 199 180 195 202

Australian Property Market – Commercial Overview

Melbourne CBD Sydney CBD
Vacancy Vacancy
Total Stock m2 Rate % Total Stock m2 Rate %
4,300,000 12 5,000,000 12
4,100,000 4,900,000
10 10
3,900,000 4,800,000
3,700,000 8 4,700,000
8
4,600,000
3,500,000
6 4,500,000 6
3,300,000
4,400,000
3,100,000 4 4
4,300,000
2,900,000 4,200,000
2 2
2,700,000 4,100,000
2,500,000 0 4,000,000 0
Jan 11
Jul 11
Jan 02
Jul 02
Jan 03
Jul 03
Jan 04
Jul 04
Jan 05
Jul 05
Jan 06
Jul 06
Jan 07
Jul 07
Jan 08
Jul 08
Jan 09
Jul 09
Jan 10
Jul 10
Jan 11
Jul 11
Jan 02
Jan 03
Jan 07
Jul 02
Jul 03
Jul 07
Jul 08
Jul 09
Jan 05
Jul 05
Jan 06
Jul 06
Jan 08
Jan 09
Jan 10
Jul 10
Jul 04
Jan 04
Vacancy Rent* Yields** Vacancy Rent* Yields**

5.8 300-450 7.00-7.50 9.3 460-660 6.50-7.50
Brisbane CBD Adelaide CBD

Vacancy Vacancy
2,100,000 12 1,020,000 14
2,000,000 10 1,000,000 12
1,900,000 980,000 10
8
1,800,000 960,000 8
6
1,700,000 940,000 6
4
1,600,000 920,000 4
1,500,000 2 900,000 2
1,400,000 0 880,000 0
Jan 11
Jul 11
Jan 02
Jul 02
Jan 03
Jul 03
Jan 04
Jul 04
Jan 05
Jul 05
Jan 06
Jul 06
Jan 07
Jul 07
Jan 08
Jul 08
Jan 09
Jul 09
Jan 10
Jul 10
Jan 11
Jul 11
Jan 02
Jan 03
Jan 07
Jul 02
Jul 03
Jul 07
Jul 08
Jul 09
Jan 05
Jul 05
Jan 06
Jul 06
Jan 08
Jan 09
Jan 10
Jul 10
Jul 04
Jan 04

7.3 380-480 7.15-8.10 7.3 250-350 8.00-8.75
Perth CBD Canberra CBD

Vacancy Vacancy
1,500,000 16 2,400,000 16
14 14
1,450,000 2,200,000
12 12
1,400,000 2,000,000
10 10
1,350,000 8 1,800,000 8
6 6
1,300,000 1,600,000
4 4
1,250,000 1,400,000
2 2
1,200,000 0 1,200,000 0
Jan 11
Jul 11
Jan 11
Jul 11
Jan 02
Jan 03
Jan 07
Jul 02
Jul 03
Jul 07
Jul 08
Jul 09
Jan 05
Jul 05
Jan 06
Jul 06
Jan 08
Jan 09
Jan 10
Jul 10
Jul 04
Jan 02
Jan 03
Jan 07
Jul 02
Jul 03
Jul 07
Jul 08
Jul 09
Jan 04
Jan 05
Jul 05
Jan 06
Jul 06
Jan 08
Jan 09
Jan 10
Jul 10
Jul 04
Jan 04

7.7 625-775 7.50-8.50 13.3 250-325 7.50-8.75
CBD Stock
Total Stock (m²) as at June 2011
Vacancy Rate (%) as at June 2011
Vacancy Rate % *Rents (A$/m²) as at July 2011
Source: Property Council of Australia, Knight Frank Research **Yields (%) as at July 2011
Commercial Construction Costs

A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Auckland
Canberra
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Australasian Overall Building Rates*
Average Standard Offices
- Low Rise 2,130 2,070 2,200 2,160 2,700 2,090 2,200 2,130 2,180 2,240 2,190 2,240 2,650
- Medium Rise 2,520 2,440 2,610 2,550 3,100 2,470 2,600 2,520 2,570 2,650 2,590 2,640 3,140
- High Rise 2,910 2,820 3,010 2,940 3,500 2,850 3,000 2,910 2,970 3,060 2,990 3,040 3,620
High Standard Offices 3,300 3,200 3,380 3,330 4,000 3,230 3,400 3,300 3,370 3,470 3,390 3,460 4,080
Engineering Services (Mechanical)

- Low Rise 245 235 240 245 305 240 250 245 250 255 255 245 305
- Medium Rise 320 310 315 325 405 315 330 320 325 335 330 340 415
- High Rise 350 340 340 355 440 340 360 350 355 365 360 360 435
High Standard Offices 415 405 400 420 525 410 430 415 425 440 435 440 520
Engineering Services (Electrical)

- Low Rise 146 142 142 148 184 142 150 146 148 154 150 154 182
- Medium Rise 174 170 170 176 220 172 180 174 178 184 180 184 220
- High Rise 225 215 220 225 280 220 230 225 230 235 230 235 280
Engineering Services (Fire)

- Low Rise 29 28 28 29 37 29 30 29 30 31 35 35 33
- Medium Rise 78 75 75 78 98 76 80 78 79 82 84 85 85
- High Rise 78 75 75 78 98 76 80 78 79 82 83 84 84
*Inclusive of builder’s preliminaries and profit but exclusive of site works, external services, land and interest costs
Mechanical – Rates are for typical base building (excluding fitout) mechanical services commensurate with the standard of building
indicated, including, as appropriate, statutory essential mechanical services.
Electrical – Rates are for typical base building (excluding fitout) electrical services commensurate with the standard of building
indicated, including light and power; statutory essential services; and, where appropriate, communications, security and MATV
backbone systems.
Fire – Rates are for statutory base building (excluding fitout) fire services, including, as appropriate, hydrants, hose reels, alarms
and/or sprinklers.
Residential Construction Costs

A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Auckland
Canberra
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Multi-unit - Low Rise 1,940 1,880 1,920 1,960 2,440 1,900 2,000 1,940 1,980 2,040 1,990 2,030 2,410
(Med. Quality) - High Rise 2,620 2,540 2,550 2,650 3,290 2,570 2,700 2,620 2,670 2,750 2,690 2,730 3,260
(High Quality) - Low Rise 2,760 2,680 2,700 2,790 3,480 2,710 2,850 2,760 2,820 2,910 2,840 2,900 3,440
(High Quality) - High Rise 3,010 2,910 3,020 3,040 3,780 2,950 3,100 3,010 3,070 3,160 3,090 3,150 3,740
Podium Car Parking 825 800 870 835 1,035 810 850 825 840 865 850 865 1,025
Basement Car Parking 1,340 1,295 1,390 1,350 1,685 1,310 1,380 1,340 1,365 1,410 1,375 1,405 1,645

Multi-unit - Low Rise 82 80 81 83 104 81 85 82 84 87 87 88 103
(Med. Quality) - High Rise 225 215 220 225 280 220 230 225 230 235 240 245 280
(High Quality) - Low Rise 205 195 200 205 255 200 210 205 210 215 210 215 255
(High Quality) - High Rise 290 280 285 295 365 285 300 290 295 305 300 305 365
Podium Car Parking N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Basement Car Parking 73 71 71 74 92 71 75 73 74 77 88 89 103

Podium Car Parking 49 47 48 49 61 48 50 49 50 51 54 50 63

Podium Car Parking 10 9 9 10 12 10 10 10 10 10 15 15 16
Residential Construction and Industrial Construction Tables

backbone systems.
and/or sprinklers.
Industrial Construction Costs

A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Auckland
Canberra
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Light Industrial - 630 610 700 635 1,000 620 650 630 645 665 650 660 785
Low Bay, Tilt Up
Heavy Industrial - 795 770 860 805 1,200 780 820 795 810 835 820 835 985
High Bay, Tilt Up
Attached Offices 2,090 2,020 2,100 2,110 2,620 2,040 2,150 2,090 2,130 2,190 2,140 2,190 2,590

Light Industrial 10 9 10 10 12 10 10 10 10 10 10 9 20
Attached Offices 245 235 240 245 305 240 250 245 250 255 250 255 300


Industrial Market Overview

Prime Net Face Rents ($A/m2) Yields (%)
Sydney Prime 95-165 7.75-8.75
Secondary 80-135 9.00-9.75
Business Space / Hi-Tech 170-230 7.75-8.75
Melbourne Prime 73-130 7.75-8.75

Secondary 55-80 9.00-10.50
Brisbane Prime 105-113 8.20-8.75
Secondary 85-91 9.30-10.00
Adelaide Prime 75-130 8.25-9.25
Secondary 50-80 9.25-10.25
Perth Prime 105-115 8.00-8.50
Secondary 75-90 8.50-9.75
Source: Knight Frank Research at July 2011

Tourism Construction Costs

A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Auckland
Canberra
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Resort 3,780 3,670 3,700 3,820 4,760 3,710 3,900 3,780 3,860 3,980 3,890 3,970 4,700
3 Star Budget 3,010 2,910 3,000 3,040 3,780 2,950 3,100 3,010 3,070 3,160 3,090 3,150 3,740
5 Star/Luxury 4,170 4,040 4,100 4,210 5,250 4,090 4,300 4,170 4,260 4,390 4,290 4,380 5,190
Suburban Motel 2,330 2,260 2,400 2,350 2,930 2,280 2,400 2,330 2,380 2,450 2,390 2,440 2,890

Resort 330 320 320 335 415 325 340 330 335 345 340 385 510
3 Star Budget 280 275 270 285 355 275 290 280 285 295 290 295 350
5 Star/Luxury 415 405 405 420 525 410 430 415 425 440 430 440 520
Suburban Motel 215 205 210 215 270 210 220 215 220 225 220 195 265

Resort 215 205 205 215 270 210 220 215 220 225 220 225 270
3 Star Budget 194 188 190 196 244 190 200 194 198 204 202 206 242
5 Star/Luxury 290 280 280 295 365 285 300 290 295 305 300 305 365
Suburban Motel 146 142 142 148 184 142 150 146 148 154 150 154 180

Resort 58 56 55 59 73 57 60 58 59 61 58 59 69
3 Star Budget 78 75 74 78 98 76 80 78 79 82 78 79 81
5 Star/Luxury 87 85 83 88 110 86 90 87 89 92 88 90 96
Suburban Motel 29 28 28 29 37 29 30 29 30 31 30 31 34
Tourism Construction and Retail Construction Tables

backbone systems.
and/or sprinklers.
Retail Construction Costs

A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Auckland
Canberra
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
District Centre 1,745 1,690 1,800 1,765 2,195 1,710 1,800 1,745 1,780 1,835 1,795 1,835 2,170
Regional Centre 2,330 2,255 2,400 2,350 2,930 2,280 2,400 2,330 2,375 2,450 2,395 2,440 2,895
Strip Shopping 1,445 1,400 1,500 1,460 1,820 1,415 1,490 1,445 1,475 1,520 1,485 1,515 1,800

Local Shopping Centre 250 245 250 255 315 245 260 250 255 265 265 265 320
(No Malls)
Regional Centre 300 290 295 305 380 295 310 300 305 315 305 310 375
Strip Shopping 184 178 182 186 232 180 190 184 188 194 194 192 230

(No Malls)
Regional Centre 126 122 121 127 159 124 130 126 129 133 131 133 159
Strip Shopping 92 89 88 93 116 90 95 92 94 97 97 99 117

(No Malls)
Regional Centre 78 75 74 78 98 76 80 78 79 82 83 84 95
Strip Shopping 29 28 28 29 37 29 30 29 30 31 34 35 45

Retail Market Overview
Prime Net Face Rents ($A/m2) Yields (%)
Sydney Regional 1,550-2,150 5.75-6.50
Sub-regional 770-970 7.00-8.75
Neighbourhood 520-645 7.75-8.75
Bulky Goods 200-300 8.50-9.50
Melbourne Regional 1,200-1,800 5.75-6.50

Sub-regional 550-1000 7.75-9.00
Bulky Goods 190-290 8.50-9.75
Brisbane Regional 950-1400 6.50-7.50
Sub-regional 700-1000 7.75-8.75
Bulky Goods 180-270 8.00-9.50
Adelaide Regional 900-1,200 6.50-7.50
Sub-regional 600-750 8.25-9.00
Bulky Goods 170-250 9.25-10.25
Perth Regional 1250-2000 6.00-7.00
Sub-regional 600-900 7.50-8.25
Bulky Goods 190-235 9.00-9.50
Source: Knight Frank Research at July 2011

Health and Aged Care Construction Costs

A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Auckland
Canberra
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
District Medical Centre 3,100 3,010 3,050 3,140 4,200 3,040 3,200 3,100 3,170 3,260 3,190 3,250 3,820
District Hospital 3,730 3,620 3,650 3,770 4,800 3,660 3,850 3,730 3,810 3,930 3,840 3,910 4,640
Nursing Home (incl. a/c) 2,570 2,490 2,450 2,600 3,230 2,520 2,650 2,570 2,620 2,700 2,640 2,690 3,200

District Medical Centre 390 375 375 390 490 380 400 390 395 410 380 405 485
District Hospital 600 585 585 610 755 590 620 600 615 630 620 625 740
Nursing Home 290 280 285 295 365 285 300 290 295 305 305 290 360

Nursing Home 340 330 330 345 425 335 350 340 345 355 360 350 420

Nursing Home 78 75 74 78 98 76 80 78 79 82 78 79 91
backbone systems.
and/or sprinklers.
Education Construction Costs

A$/m2 NZ$/m2
Christchurch
Melbourne
Wellington
Townsville
Auckland
Canberra
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Education
Primary Schools 1,435 1,390 1,400 1,450 2,000 1,405 1,480 1,435 1,465 1,510 1,475 1,510 1,790
Secondary Schools 1,700 1,645 1,690 1,715 2,500 1,665 1,750 1,700 1,735 1,785 1,745 1,785 2,110

Primary & Secondary 121 118 120 123 153 119 125 121 124 128 118 139 44
Schools
Schools (incl. a/c)
Schools
Schools
backbone systems.
and/or sprinklers.
Major Rates for ANZ

A$ NZ$
Christchurch
Melbourne
Wellington
Townsville
Auckland
Canberra
Brisbane
Adelaide
Sydney
Darwin
Hobart
Cairns
Perth
Basement Excavation m³ $44 $42 $43 $44 $55 $43 $45 $44 $45 $46 $53 $54 $73
Foundation Excavation m³ $82 $80 $79 $83 $104 $81 $85 $82 $84 $87 $86 $88 $113
Imported Structural Fill m³ $92 $89 $88 $93 $116 $90 $95 $92 $94 $97 $95 $97 $130
Concrete in Pad Footing m³ $245 $235 $230 $245 $280 $240 $250 $245 $250 $255 $250 $250 $330
(25 mpa)
Concrete in Wall (32 mpa) m³ $320 $310 $305 $325 $270 $315 $330 $320 $325 $335 $325 $330 $395
Concrete in Suspended Slab m³ $280 $275 $265 $285 $320 $275 $290 $280 $285 $295 $285 $290 $350
(32 mpa)
Formwork to Slab Soffit m² $126 $122 $120 $127 $159 $124 $130 $126 $129 $133 $132 $130 $152
Formwork to Side and m² $141 $136 $135 $142 $177 $138 $145 $141 $144 $148 $142 $145 $212
Soffit of Beam
Precast Wall Panel m² $415 $405 $400 $420 $525 $410 $430 $415 $425 $440 $420 $425 $525
Architectural with Sand
Blast Finish
Reinforcement in Beam t $2,720 $2,630 $2,600 $2,740 $2,600 $2,660 $2,800 $2,720 $2,770 $2,860 $2,850 $2,770 $3,290
Structural Steel in Beam t $6,310 $6,110 $6,050 $6,370 $7,500 $6,180 $6,500 $6,310 $6,440 $6,630 $6,690 $6,410 $7,620
Structural Steel in Truss t $6,690 $6,490 $6,750 $6,760 $8,000 $6,560 $6,900 $6,690 $6,830 $7,040 $7,550 $6,660 $8,100
Aluminium Framed Window m² $630 $610 $605 $635 $795 $620 $650 $630 $645 $665 $720 $640 $780
6.5 Clear Glass
Aluminium Panel Curtain m² $875 $845 $830 $880 $1,100 $855 $900 $875 $890 $920 $905 $920 $1,070
Wall System (including
structural system)
Steel Stud Partition m² $39 $38 $37 $39 $49 $38 $40 $39 $40 $41 $43 $44 $56
(framing)
Plasterboard 13 thick to m² $29 $28 $28 $29 $37 $29 $30 $29 $30 $31 $33 $29 $45
Partition
Suspended Mineral Fibre m² $58 $56 $55 $59 $73 $57 $60 $58 $59 $61 $62 $58 $73
Ceiling Tile
Paint on Plasterboard Wall m² $10 $9 $9 $10 $15 $10 $10 $10 $10 $10 $12 $11 $13
Ceramic Tiles to Wall m² $87 $85 $83 $88 $110 $86 $90 $87 $89 $92 $104 $95 $124
Non-slip Vinyl to Wet Areas m² $73 $71 $69 $74 $92 $71 $75 $73 $74 $77 $76 $77 $88
Anti-static Carpet Tile to m² $58 $56 $55 $59 $73 $57 $60 $58 $59 $61 $61 $57 $67
Office & Admin Areas
Anti-static Broadloom m² $56 $55 $53 $57 $71 $55 $58 $56 $57 $59 $60 $56 $69
Carpet to Office & Admin
Areas
Aluminium Framed m² $580 $565 $555 $590 $730 $570 $600 $580 $595 $610 $620 $635 $715
Shopfront
Rates are subcontract rates inclusive of labour and material fixed in position complete, include competitive margins for overhead
and profit, and are for projects constructed in the CBD area of average specification and of medium- to high-rise construction.
The rates are net of GST component.
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 Concreter 25% 75% 0%
Joiner 15% 85% 0%
Lifts 25% 75% 0%
Mason 10% 90% 0%
Metalworker 25% 75% 0%
Painter 75% 25% 0%
Paver 75% 25% 0%
Piler 20% 55% 25%
Plasterer 40% 60% 0%
Precast Concreter 20% 80% 0%
Preliminaries 40% 10% 50%
Reinforcement Fixer 20% 80% 0%
Roadworker & External Paver 15% 85% 0%
Structural Steelwork 10% 90% 0%
Suspended Ceiling Fixer 40% 60% 0%
Tiler 55% 45% 0%
Property Taxes
Real Property Stamp Duty
Value Duty
Australian Capital Territory Up to $100,000 $20 or $2 per $100 or part thereof
$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 $100 in excess of $1,000,000
New South Wales Up to $14,000 $1.25 per $100 or part of dutiable value
$14,001-$30,000 $175 + $1.50 per $100 in excess of $14,000
$30,001-$80,000 $415 + $1.75 per $100 in excess of $30,000
$80,001-$300,000 $1,290 + $3.50 per $100 in excess of $80,000
$300,001-$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

$5,000-$105,000 $1.50 per $100 in excess of $5,000
$105,000-480,000 $1,500 + $3.50 per $100 in excess of $105,000
$480,000-$980,000 $14,625 + $4.50 per $100 in excess of $480,000
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-$960,000 $2,870 + 6% of above $130,000
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
2
Northern Territory Up to $525,000 0.065*V + 15V where V is Value/1000
$525,000-$3,000,000 4.95% of total value
Above $3,000,000 5.45% of total value
Land Taxes
Taxable Land Value Land Tax

Australian Capital Territory Residential Properties
$0-$75,000 0.60%
$75,001-$150,000 0.89%
$150,001-$275,000 1.15%
$275,001 and above 1.40%
Commercial Properties
$0-$150,000 0.89%
$150,001-$275,000 1.25%
$275,001 and above 1.59%
New South Wales Up to $396,000 Nil

$396,001-$2,421,000 $100 + 1.6% for amount in excess of $396,000
$2,421,000 and above $100 + 2.0% for amount in excess of $2,421,000
Queensland Rates for 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 + 2.0% of above $5,000,000
Rates for 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
South Australia $0-$316,000 Nil

$316,001-$579,000 $0.50 for every $100 in excess of $316,000
$579,001-$842,000 $1,315 + $1.65 for every $100 in excess of $579,000
$842,001-$1,052,000 $5,654.50 + $2.40 for every $100 in excess of $842,000
Above $1,052,000 $10,694.50 + $3.70 for every $100 in excess of $1,057,000
Tasmania Up to $24,999 Nil

$25,000-$349,999 $50 + 0.55% of above $25,000
Above $350,000 $1,837.50 + 1.5% of above $350,000
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
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 $1,000,00
$2,200,000-$5,500,000 $6,270 + 1.22 cents for each $1 in excess of $2,200,000
$5,500,000-$11,000,000 $46,530 + 1.46 cents for each $1 in excess of $5,500,00
$11,000,000 and above $126,830 + 2.16 cents for each $1 in excess of $11,000,000
Northern Territory No Land Tax is payable in Northern Territory

5
INDUSTRY
COMPLIANCE AND
TRENDS
Construction Sentiment Survey – Five-Year 60

Anniversary
Access to Finance 62
EBA Impact 63
Existing Buildings Fundamentals and Market 64
Opportunities
Occupational Health and Safety Reforms 66
Disability Standards 68
Key Changes from the Current BCA 69
Commercial Building Disclosure Program 69
Construction Sentiment Survey – Five-Year Anniversary
Davis Langdon’s Five-Year Anniversary indications of a gradual re-emergence of

Sentiment Survey in 2011 highlighted these concerns since arguably the bottom
several challenges faced by the industry but of the market in 2009.
also focused on emerging opportunities.
Industrial-relations (IR) issues have
Plotting the industry’s prominent also continued to rise. Our June survey
challenges over the past five years shows indicated 31 percent of respondents
the dominance of skills shortages and cost expect poor IR conditions over the next 12
concerns during the resources boom of months, compared to only 23 percent in
the previous decade. There are also recent our March survey.
Prominent Industry Challenges
Signs of Sub-prime Crisis $42b stimulus package

– US bankruptcies begin announced, including BER –
leads to increased workloads
%
100
90
80
70
60
50
40
30
20
10
0
2006
2007
2008
2009
2010
2011
Bear Stearns fire sale, Lehman BER work fades, carbon price
Costs bankruptcy – crisis spreads announced, sovereign debt
Planning and Regulation globally worries spark market upheaval –
industry confidence low
Skills Shortage
Access to Finance
Industry Relations
Shortage of Projects

Construction Sentiment Survey – Five-Year Anniversary
Industry participants’ views on the risks opportunities reflected a sense of not

and opportunities for the property and being “left behind” and of embracing new
construction industry over the next five project delivery processes. Participants
years also revealed the key influences on suggested that changes to the way we
the market towards 2012. work and play will create opportunities to
“use space more efficiently” and transform
Opportunities
human interactions within the office and
Sustainability was ranked the number-one
retail sectors.
opportunity for the industry over the next
five years. One respondent encapsulated Risks
the winning formula as “adaptive and Looking ahead, industry respondents do
creative responses to new priorities in not expect financing difficulties to subside
urban living – carbon, density and energy”. anytime soon. The cost, conditions and
These idealistic sentiments were also availability of debt are ongoing risks to
paired with the necessity of real-world project viability. These issues will not
practicalities, including the ability to be helped by continued stress in global
promote the long-term cost and benefits of economies – in addition to eurozone
sustainable buildings. sovereign debt challenges, others saw a
weaker appetite for our commodities.
Infrastructure demands and the flow-on
effects of the resources boom were also Tackling carbon constraints was also high
prominent. Many saw demand for a greater on the list of risks. There were concerns
range of affordable housing, while big- about the carbon price; however, most were
picture thinkers saw opportunities for urban more worried about the risks stemming
renewal in regional and fringe communities. from industry not investing in sustainable
practices – a “lack of understanding about
Others looked towards the full integration
the increasing relevance of sustainability
of Building Information Modelling (or, more
considerations” to adapt to a carbon-
appropriately, Asset Information Model
constrained future.
Management) and lifecycle costing. These
Future Industry Risks and Opportunities
Risks Next 5 Years Opportunities

Finance 17% ESD 30%
World Economy 16% Infrastructure 24%
Skills Shortages 15% Resources Boom 20%
Carbon Constraints 11% Residential 13%

Interest Rates and
Demand Factors 10% Urban Renewal 12%
Spending Cuts 7% Innovation/BIM 9%
Cost and Quality 7% Existing Buildings 8%
Planning and Regulation 7% Emerging Asian Markets 6%
Two-Speed Economy 6% Australia’s Economic Strength 6%

Capitalising on Limited
IR and Labour Costs 5% Supply Post-GFC 4%
Access to Finance
Funding projects remains one of the top changes in the funding experiences across
problems faced by participants, as the different sectors. Several sectors have
industry grapples with the ‘new norm’ in become more challenging to finance –
financing post-GFC. In the September 2011 particularly tourism, retail or industrial
quarter, we revisited our survey on Access projects. In contrast, existing building
to Finance from June 2010 and found refurbishments and residential projects
have become easier to fund.
Finance by Sector
%
Tourism
Retail
Industrial
Retirement & Aged Care
Office
Residential
Existing Building & Refurbishment
Infrastructure
Education
Health
Resources
0 20 40 60 80 100
Neither Easy nor
Difficult Difficult Rating in June 2010 Easy
Difficult
The level of pre-sales is still the greatest percent classified this as a medium to great
barrier to gaining finance – as it was 18 barrier. Respondents pointed to a need for
months ago. Loan-to-equity ratios were more equity; alternative cash-flow sources;
not as prominent in respondents’ lists of developer capacity to pay for cost over-runs;
obstacles. Participants who were attempting increased competition in the banking sector;
to fund new projects repeatedly cited a and, globally, the departure of governments
lack of alternative forms of finance – 69 from wholesale debt markets.
Barriers to Finance
%
Level of Pre-sales
Lack of Alternative Finance
Risk Profile of the Project
Risk Profile of the Borrower
Risk Profile of the Market Sector
Loan to Equity Ratio
Lack of Competition
End Valuation
Cost of Wholesale Debt
0 10 20 30 40 50 60 70

EBA Impact
The new enterprise bargaining agreement Project durations ranging from 12 to 30
(EBA) negotiated by the Construction, months have been examined for three
Forestry, Mining and Energy Union has scenarios where existing projects already
secured an increase of 5 percent per annum have inbuilt forecast levels of cost
in construction labour rates. In Victoria, escalation allowances of 2, 3 and 4 percent
this new escalation rate will come into per annum.
effect on 1 March 2012 and will continue
The table below reflects the direct cost
until 1 March 2015, which represents a
impacts only and does not consider the
20 percent increase over the period of the
extent to which contractors will take a
new agreements. Although implementation
competitive approach when considering
differs between other states and territories,
their pricing levels. It is likely that the full
similar agreements are being negotiated.
impact of the labour price increase will
The analysis below reveals the likely direct not be passed on, with commensurate
impacts on construction labour costs adjustments in margins and other
based on the EBA changes, equating to an elements.
increase of 5 percent per annum over four
This advice is intended as a guide only,
years from the prior 3 percent per annum
as the mix of trades and the extent of highly
arrangement. This analysis does not include
labour-intensive trades will have a direct
other aspects of the arrangement, including
impact on the overall cost increase,
but not limited to double time replacing
depending on the specifics of the project.
time and a half.
Forecast 2011 EBA Cost Impacts – Victoria
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
Indicative Extra Impact on 0.0%

Construction Costs of Projects with 12 Months 18 Months 24 Months 30 Months
Escalation Allowances of 2% 1.37% 2.05% 2.74% 3.42%

Existing Buildings Fundamentals and Market Opportunities

Existing buildings represent a significant the opportunities available in metropolitan
retrofit opportunity in the marketplace. and regional centres. Following a detailed
Both from a cost and an environmental analysis of the broader office market,
perspective, improving the performance Davis Langdon found significant scope
of existing building stock through targeted for emissions savings in metropolitan and
upgrade initiatives makes good business regional markets in Victoria.
and social sense.
Through this study, Davis Langdon found
Traditionally, the analysis of office that 54 percent of the Victorian office-
retrofitting initiatives has been focused market gross floor area (GFA) is located
on CBDs – where the highest volume of outside the City of Melbourne. These figures
investment-grade building stock resides. alone warrant an investigation into all the
Minimal research has been conducted into non-CBD office markets in Australia.
Office Market by Construction Year – Victoria (excluding City of Melbourne)

No. of GFA
Buildings (m2 )
5,000 1,600,000
4,500
Trend Reversal: 1,400,000
4,000 Decentralisation of Offices to
outside of the City of 1,200,000
3,500
Melbourne – See Note
3,000 1,000,000
2,500 800,000
2,000
600,000
1,500
400,000
1,000
500 200,000
0 0
1800-1809*
1840-1849
1850-1859
1860-1869
1870-1879
1880-1889
1890-1899
1900-1909
1910-1919
1920-1929
1930-1939
1940-1949
1950-1959
1960-1969
1970-1979
1980-1989
1990-1999
2000-2010
*No buildings are listed in the Valuer General Victoria data as being constructed in the period from 1809-1840.
Note: During the 1980s and 1990s, a reversal in the long-term trend occurred, resulting in greater office area constructed relative to the number
of buildings. This was predominantly associated with decentralisation of Victoria’s office market outside of the CBD and primarily into the inner
northern, western and eastern suburbs.
Victorian Office Market by GFA

9%
45% 46%
Regional
City of Melbourne
Source: Davis Langdon Research,
Metropolitan
(not including City of Melbourne) Valuer General Victoria 2010
Existing Buildings Fundamentals and Market Opportunities

Davis Langdon found that Victorian office office stock are accessibility to finance,
buildings constructed between 1960 and split incentives, lack of knowledge
1999 would yield the most success from a about building upgrades and disruption
targeted, performance-based retrofitting to tenants. Targeted and integrated
scheme, owing to their expected lifecycle government regulations, combined with
stage and the large number of these financial incentives and educational
buildings spread across CBD, metropolitan initiatives, were identified as a way to make
and regional areas. progress and remove potential barriers in
the longer term.
Programs such as Commercial Building
Disclosure (CBD) and the City of Initiatives to undertake a retrofit can be
Melbourne’s 1200 Buildings are good drawn from a wide variety of case studies
examples of programs that have driven and industry guides currently available
improved building performance. However, in the marketplace. Research suggests
Davis Langdon has found that if thresholds an integrated approach is recommended.
for the CBD program were lowered from Considerations such as environmental
their existing threshold of 2,000 m2 net impact, typical building features and
lettable area (NLA) to 500 m2 NLA, an climate or other regional factors – and
additional 2,100 buildings would be the impact these have on the four key
captured in Victoria alone. stakeholders affected by building retrofits
(owners, tenants, facility managers and
Drivers of and barriers to retrofits in
maintenance teams) – are crucial to
Australia are multifaceted and complicated.
executing a successful retrofit strategy.
The most common barriers to upgrading
Office Market by Floor Area Range (<2,000 m2) – Victoria
No. of
Buildings 0-499 m²: 21,907 500-1,999 m²: 2,107
10,000 9,499
8,000 7,245
6,000
4,000 2,922
2,000 1,405
836 545 654
343 229 206 130
0
0-99
100-199
200-299
300-399
400-499
500-599
600-699
700-799
800-899
900-999
1000-1999
GFA Range (m2)
Building With Unclassified GFA
Source: Davis Langdon Research, Valuer General Victoria 2010

Occupational Health and Safety Reforms
The new occupational health and safety -- eliminating or minimising “reasonably

(OHS) reform agenda aims to harmonise practicable risks” to health and
OHS legislation across Australia and reduce safety arising from the design during
the incidence of workplace death, injury construction work
and disease. -- receiving a written safety report from the
Over the last 20 years, there have been designer
efforts to make OHS regulations more -- consulting the Principal Contractor on
consistent by developing National OHS health and safety risks.
Standards and Codes of Practice. However, The legislation defines a construction
there was no binding obligation for project as any work with a construction
governments to adopt these standards. value higher than $250,000 and/or involving
Now, for the first time, governments from a high level of risk that would normally
the states, territories and Commonwealth require the development of a Safe Work
have formally committed to the Method Statement.
harmonisation of OHS legislation.
A person who commissions work for a
The model legislation, the Model Work construction project must appoint a
Health and Safety (WHS) Act, was endorsed Principal Contractor – a role that can be
by the Workplace Relations Ministers’ filled by an architect, project manager or
Council in December 2009. All ministers builder, or that person can elect to be the
have been advised to implement these Principal Contractor.
standards by 1 January 2012.
Principal Contractors have a range of
As of 1 January 2012, the Commonwealth, duties on a project and ensure other
New South Wales, Queensland, Australian contractors, subcontractors and workers
Capital Territory and Northern Territory fulfil their obligations. Principal Contractor
had adopted the new Model WHS laws. requirements include developing a detailed
Each jurisdiction will be required to enact, sign for the site and a Health and Safety
or otherwise give effect to, their own laws Management Plan, as well as ensuring any
that mirror the model laws. South Australia, health and safety risks are managed.
Victoria, Western Australia and Tasmania
have deferred the start date and will What Is Model Legislation?
continue debating this issue. The model legislation consists of a model
Within the property development Act, supported by model regulations and
and construction industry, these new model Codes of Practice that can be readily
regulations would apply to all “persons adopted in each jurisdiction.
conducting a business or undertaking”. The model Act sets out the general duties
This broad definition covers all parts of the of care, while the model regulations provide
building and construction industry. more detailed requirements. The model
Specific duties entail: Codes of Practice, which are yet to be
developed, will provide practical guidance
-- informing designers of hazards in the on achieving the requirements of the Act
proposed workplace and regulations.
Occupational Health and Safety Reforms
Why Do We Need Model Legislation? employee relationships that currently exist

in most OHS laws.
Inconsistent laws cause confusion
for businesses and inequitable safety Businesses will comply with one set
standards across jurisdictions and sectors. of consistent laws; this is expected to
Inconsistency also leads to duplication reduce the costs associated with adapting
and inefficiencies for governments in the business practices and strategies.
provision of policy and support services.
Even businesses in states that are yet to
Over 135,000 Australians are seriously implement this legislation may still be
injured at work every year, and more than liable to prosecution under the Model
260 die as a result of work-related injuries. WHS Act, as it is an overarching legislative
The total cost of work-related injuries and requirement applicable to all jurisdictions
illnesses to the Australian economy for the in Australia. Also, Officers can be liable
2005-06 year was estimated at $57.5 billion for failing to demonstrate due diligence in
by Safe Work Australia. other jurisdictions by virtue of a trading
relationship.
How Will This Affect Workers and
Businesses? Duty of Care Under the Model WHS
Legislation
Model legislation will ensure that all types
of workers are protected from workplace The three levels of duty of care under the
health and safety risks, because the duties model WHS legislation are explained in the
of care will extend beyond the employer– following table.
Duty Holder Corresponding Obligations
The Business or “Persons Reasonably Practicable

Conducting or Undertaking” The business carries the highest duty, based on what is reasonably
practicable, as it is in a position to control issues that impact the business.
Based on the scope of its operations and activities, associated plant,
equipment, skills and training of its workers, businesses are required to
undergo a hazard identification and risk assessment, and then apply, subject
to reasonable practicability, appropriate risk controls.
Officers – defined under the Due Diligence

Corporations Act 2001 as a person Officers now carry an obligation of due diligence. This requires them to be
who makes, or participates in aware of the nature of the business’s activities and the associated risks. They
making, or who has the capacity to must ensure that the business has adequate resources to meet all relevant
affect significantly, decisions that obligations.
affect the whole or a substantial Because the business is a separate legal entity and costs of compliance are
part, of the business of the imposed on the business, not the individual, it is not appropriate to impose a
corporation duty on Officers. However, the Officer has the responsibility to exercise due
diligence to ensure that the business follows protocol.
Workers and Other Persons in a Reasonable Care
Workplace Workers, and other persons in the workplace, have a duty to exercise
reasonable care for their own health and safety, and reasonable care to ensure
that their acts or omissions do not adversely affect the health and safety of
other persons.
Disability Standards
Access to Premises – Buildings -- open-air sports venues
The Australian Government’s Disability -- pathways, public gardens and parks
Discrimination Act 1992 (DDA) prohibits The new Premises Standards will apply
discrimination against people with a to all new buildings and refurbishments
disability or their associates in a range requiring building certification.
of areas, including transport, education,
employment, accommodation and other The standard aims to make buildings as
public premises. accessible as possible, while avoiding what
the legislation describes as an unjustifiable
To date, the DDA had not referenced hardship on building owners and occupiers.
a technical standard with detailed These new standards will impact
requirements for access to premises. existing and pre-purchase due diligence
Previously a number of Australian processes, where consideration must be
Standards provided direction. The new made for changing space and amenities
Disability (Access to Premises – Buildings) requirements that may result in the loss of
Standards will provide detailed guidance net lettable area.
to ensure buildings are accessible to
all members of the community. They Implementation and Concessions
are intended to act as a codification of All new buildings will need to meet the
requirements under the DDA. Premises Standards, as will all “New
In conjunction with developing these Parts” of existing buildings, which includes
new Premises Standards, the Australian extended or modified parts. “Affected Parts”
Building Codes Board has also revised will also require access – defined as the
the Building Code of Australia (BCA). The principal entry of an existing building that
changes will align building regulation with contains a new part, as well as the path
Federal disability discrimination laws and of travel from the entry to the new part. A
also provide certainty for building owners, number of concessions have been made to
operators, designers and certifiers. reduce the cost of implementation:
Premises Standards -- a lessee concession – a lessee’s work to

a new part of the building will not see the
The DDA sets out specific areas in which “affected parts” requiring access
it prohibits a person being discriminated -- a lift concession – an existing lift within
against on the grounds of their disability. a new or “affected part” that does not
This includes access to or use of “any travel more than 12 m will not require
premises that the public, or a section of the modifications
public, is entitled or allowed to enter or use”. -- a toilet concession – existing accessible
The DDA definition of “premises” is very sanitary facilities and compartments
broad and includes: within a new or “affected part” of
an existing building will not require
-- existing buildings, including heritage modifications if they meet the
buildings superseded AS 1428.1 (2001).
-- proposed or new buildings
-- car parks
Key Changes from the Current BCA

The Premises Standards will refine the -- sanitary facilities for people with
provisions in the current BCA: ambulant disabilities will be required in
all toilets
-- Class 1b and 2 buildings offering
short-term accommodation are to be - - accessible sanitary facilities must be on
incorporated every storey, and where more than one
bank of toilets is provided, to not less
-- AS 1428.1 (2009) will be the main
than 50% of those banks
referenced standard, which cites the
“90th percentile wheelchair footprint” - - elements of public-transport facilities
(a footprint that is intended to represent must achieve access by 2022, complying
90 percent of wheelchairs available) with a mixture of AS 1428 parts 1 and 2
rather than the “80th percentile”; this and the superseded parts 1 and 4
means larger circulation spaces to doors, -- furniture and fitout remain outside the
sanitary facilities, lifts, etc. scope of the premises standard and
-- proportion of accessible sole-occupancy will continue to be enforced via the DDA
units to Class 1b, 3 and 9c buildings complaint system.
increased Housing Initiatives
-- swimming pools with perimeters greater
Even though sole-occupancy units within
than 40 m to be accessible
residential buildings are effectively exempt
-- accessible car parking must comply from the Disability (Access to Premises
with AS 2890.6: a narrower space with – Buildings) Standards, accessibility in
the addition of a shared space protected Class 1 and 2 buildings is being regulated
with a bollard at the roadway at a state and municipal level in many
-- proportion of wheelchair spaces in locations. Many Development Control Plans
auditoria is increased in New South Wales require ‘adaptable’
-- stair and vertical platform lifts are sole-occupancy units, and South Australia
now referenced and Australian Capital Territory require a
proportion of ‘accessible’ sole-occupancy
units.
Commercial Building Disclosure Program

In 2009, the Council of Australian or buyers of a whole building, tenancy or
Governments (COAG) agreed on a national sublease space greater than 2,000 m².
scheme for reporting energy efficiency in This summarises the performance of the
the office market. The Building Efficiency building with a NABERS Energy rating,
Disclosure Act 2010 activated these a lighting efficiency assessment and
disclosure obligations, and the Commercial suggestions on how to improve the energy
Building Disclosure (CBD) 12-month efficiency of the building.
transition period commenced in November
This program has created greater
2010. From 1 November 2011, a Building
transparency in the marketplace by
Energy Efficiency Certificate (BEEC) must
improving the accessibility of information
be provided to all prospective tenants
on energy-efficiency performance.
6
BIM AND IPD
Global Trends 72
BIM Implementation 74
Barriers to Adoption 75
Green BIM 75
Integrated Project Delivery 76
Global Trends
Building Information Modelling (BIM) has BIM capability by funding hardware,
been around since the early 1990s but has software and training programs in design,
gained momentum only recently, aided by visualisation and model analysis. The
a better understanding of its benefits and Project Collaboration Scheme supports
a proliferation of technology. The year 2012 implementation of BIM by covering training
is expected to be the tipping point in most and software costs, aiming to reduce design
developed markets, as the benefits of this conflicts and costly reworks.
lean process across design, construction
This nationwide initiative is an excellent
and operation become more evident.
example of top-down support to BIM
United States adoption. The true value of BIM will not be
realised until all participants in a building
The US has led the world in advancing
project contribute to model development
the broad adoption of BIM. The General
(not just model authoring) to inform
Services Administration (GSA) mandated
decision-making.
BIM in 2007. Improved asset management
of its US$500 billion portfolio was the key United Kingdom
driver of mandating BIM deliverables on all
The UK government announced in 2011
projects.
that it will be seeking efficiencies through
Scandinavia greater use of BIM on all public projects
over £5 million. The government will require
Finland was also an early mover in the
collaborative 3D BIM on all its projects
government mandate of BIM. In 2008,
by 2016, including the electronic transfer
Finland formalised an agreement
and storage of all project and asset
that included the Danish Enterprise
documentation and data.
and Construction Authority, Norway’s
Directorate of Public Construction and It recognises that a major “change
Property, and the United States GSA, to programme” will be required to enable all
promote interoperability with seamless construction businesses to use BIM within
exchange of digital data between five years and emphasise the need for “a
developers. This agreement aimed to give communicative approach similar to the
public owners and users a leadership role in analogue to digital television” switchover.
the development of BIM. This will require more than just effective
communications. Businesses will need
Singapore
to gear up to new ways of working and
The Building and Construction Authority investing in IT infrastructure as well as
(BCA) of Singapore is also promoting the developing new systems. A BIM Academy
widespread adoption of BIM. The SG$250 has been created as a centre of excellence
million BCA BIM Fund aims to promote for research, learning and enterprise, as
BIM technology adoption in two ways. well as helping organisations to adopt BIM
The Firm Level Scheme supports firms’ processes through workshops and training.
Global Trends
Australia upon industry and academic knowledge
to support business and government
The BIM adoption rate in Australia has
decision-making associated with the
been quite different compared to overseas.
adoption of various levels of BIM and IPD.
So far it has been from the bottom up, led
As the academy’s knowledge base expands,
by industry rather than by government
industry participation will be welcomed into
action. There has been some government
its agenda.
recognition of the macroeconomic benefits,
but little incentive for the take-up of BIM. New Zealand
While Australia can boast an impressive BIM adoption in New Zealand is at a similar
line-up of projects delivered using BIM point to Australia; a lack of a government
(primarily in design), the industry still lags mandate is holding back implementation.
behind other developed markets. Clients Clients and contractors are slowly
have only recently started to understand beginning to understand the opportunities
the benefits associated with the outputs BIM provides. Design consultants are at the
of BIM processes – such as a tangible forefront, using BIM for their own efficiency
deliverable at project completion that is gains and sustainable design outcomes.
valuable to the ongoing management of
Without a government mandate of BIM,
the asset, in addition to coordinated design
New Zealand will also struggle to keep
documentation and visualisations.
up with the rate of adoption seen in other
Davis Langdon, in collaboration with RMIT nations.
University, has launched the Australian
chapter of the BIM Academy. It aims to draw
Forecast
100
90
80
% of BIM Adoption
Owners/Facilities manager
70
BIM transition
60
Contractors/Subcontractors
50 BIM transition
Structural BIM
40
transition
30 Architecture
BIM transition BIM adoption in UK
20 doubles in 12 months
10 (13-26%)
0
2011
2001
2007
2005
2010
2013
2015
2030
1994
IAI founded Building SMART Singapore Govt

founded opens $250 million
BIM fund (CPCF)
Pilot projects GSA & Finland
US/Finland mandate BIM
IFC models data deliverables
Australia and New Zealand Finland
UK Singapore
US
BIM Implementation
It is now widely accepted, and rightly The slow rate of implementation in the
so, that BIM is a process – not a suite Australian market could be linked to a
of software packages. Technology is reluctance to change well-established
undoubtedly the enabler in the BIM working practices. BIM does call for cultural
process, and this is the reason many in the change, but it is also about reviewing basic
industry still confuse BIM with Autodesk’s work practices to identify inefficiencies in
Revit, Bentley’s Microstation or IES’s Virtual the processes, both internally and in the
Environment software platforms. wider supply chain.
The new deliverable is data (and the ability Implementation will continue to gather
for all stakeholders to benefit from making pace over the next 12 months, as evidence
use of it). Data is the key to realising the from current BIM projects is disseminated
commercial benefits of successful BIM to the market and the trend setters are
adoption among individual firms, project joined by the late adopters. BIM should be
teams and governments alike. embraced as a subset of lean construction.
It helps to address the fragmentation
Several clients have started to mandate
and inefficiencies that still exist in the
BIM on their projects. They have realised
construction industry.
the benefits of having instantly accessible,
digitised data to inform decision-making
at board and facility levels throughout
the design, construction and asset
management lifecycle.
New Ways of Working – Is It about Parallel Working with the Supply Chain?
Effort / Effect
CD: Concept Design

SD: Scheme Design
DD: Design Development
CD: Construction Documentation
PR: Procurement
CO: Construction
OP: Operation
CD SD DD CD PR CO OP
Time
Ability to Impact Cost and/or Functional Capabilities Current Design Process

Cost of Design Changes BIM Design Process
Source: Construction Users Roundtable BIM report

Barriers to Adoption
BIM has challenged some commonly The information generated through design
held assumptions around project delivery needs to be passed on to the contractors
and execution. and, finally (and most importantly), to
owners and facility operators. Too much
Legal, Contractual and Insurance
knowledge is lost in the current process
There is a lack of precedent to provide clear of handing over 2D documentation.
guidance on issues such as ownership However, it will require a paradigm shift in
of intellectual property rights in project industry thinking to move away from these
models and associated information. traditional practices.
Standard forms of building contract
IT and Software Systems
– including design and consultant
appointments – do not currently make While a critical requirement of BIM is
specific provision for BIM. There is also interoperability of systems and data, not
little clarity on the implications for all software and associated IT platforms
design liability and associated insurance currently used for BIM deploy Industry
arrangements for teams working with BIM. Foundation Class–compliant information
standards. Manufacturers have not yet
Cultural Change
agreed on a single standard, and the variety
BIM is blurring the lines between who does of systems in use can impose heavy training
what in design and construction teams. burdens on firms who need to operate with
‘Best practice’ is not yet clearly defined, and all of them.
different disciplines are developing their
own methods and standards. To realise
the efficiency gains from BIM, traditional
contract delivery methods need to change.
Green BIM
The ability to build in a virtual environment costs of material, labour and plant.
and to test assumptions for material Embodied carbon, operational and system
and system performance are taking maintenance costs are produced as outputs
sustainability in construction to new levels. of the model’s analysis, bringing holistic
For example, performance simulations digitised sustainability assessments to
can now be run on different mechanical review before completing the final design.
systems, allowing an owner to understand
The more information put into the model,
the impact of a specific system on
the more accurate the predictions on how
operational costs during the design
the building will perform. The benefits
stage of the project. Lifecycle analysis of
of this advanced knowledge to building
materials and processes can produce more
owners cannot be understated.
than a simple cost plan that measures
Davis Langdon BIM Enabled Integrated Service Delivery
Business Project Scheme Detail

Inception Tender Construction Use
case brief design design
Stakeholder BIM execution Project steering Contract admin Hand-over

management planning Scheduling Project controls management
(COBie)
Program
Client Procurement Set project Project reporting

management workshop controls baseline Benefits analysis
Client
Define needs & Client/project Negotiate incentive management
outcomes team management compensation Document control
Develop project Scheduling layer (ICL)
brief Supply chain
management
Parametric cost Detailed cost Detailed cost Cost management Cost in use
modelling modelling from modelling from Cost reporting analysis
Benchmarking BIM BIM
Final account
Option analysis Benchmarking Market analysis
Cost
Define project Tender

target cost management
estimate Contract
Whole-life cost negotiations
estimating Change control
Client/project Full business case Specification Value and risk Energy in use
structure advice Value and risk consulting management analysis
Business case management Value and risk Facilities
Consultancy
Risk analysis Conditions for management management

success planning Asset
Value management
management
Space and
workplace analysis
Integrated Project Delivery

For too long, the Australian construction as much productivity as they can out of
industry has relied on outdated existing project delivery methods, or to
procurement methodologies that foster develop new ones. BIM can be used to
adversarial practices and silo mentalities, reduce waste in terms of time and materials
and fall short of encouraging the type of as part of a larger methodology – Integrated
collaboration that is needed to improve Project Delivery (IPD).
efficiency. No other industry produces the
In IPD projects, key parties assemble
levels of waste that construction produces
as early as possible – ideally during
– in terms of time, cost and materials. Lean
conceptual or schematic design – to form
construction and design for manufacture
a collective expertise before anything is
are producing outstanding results and
designed. To incentivise parties, shared
should be encouraged by governments
risk-and-reward contracts are established,
and industry bodies alike.
with all parties working together for
In the US, several developments have the good of the project. A portion of the
steered industry towards new procurement compensation is tied to project, not to
models. The state of the economy has individual success.
forced many organisations to squeeze
IPD is reasonably new to this part of the share rather than shift risk between
world, but Davis Langdon has incorporated organisations.
IPD into its procurement matrix, evaluating
At the start of an IPD project, a small team
its benefits versus traditional procurement
of consultants and the contractor work to
routes. Further education is required, but
engage with the owner to determine the
the key to a significant shift in the industry’s
target value (the client’s wants, interests
approach will come from participants who
and concerns). From the target value, the
witness first-hand the benefits of IPD.
target cost can be established, which will
Alliancing has many of the attributes of a guide the rest of the IPD team in exploring
successful IPD project, except everyone ways to develop the design based on the
has independent liability, insurance, target cost.
risk management, etc., which can lead
One of the core principles of Target-Value
to adversarial relationships. Roles are
Design (TVD) is:
narrowly defined, to manage risk. With IPD,
the teams act not as silos or contractual Rather than estimate based on a detailed
entities but as a collection of companies design, design based on a detailed estimate.
with a mutual responsibility to meet the
On projects where TVD is used, cost
client’s goals.
should dictate design, to ensure the target
In some cases, the main portion of the cost is not exceeded. It is paramount that
integrated team is the decision-making cost feedback is provided to the design
‘core group’ – comprising the owner, team quickly and on multiple design
architect and main contractor – but more options. The current practice of using
frequently the core group also includes milestone estimates is akin to driving
engineers, subcontractors and facilities down the freeway with your eyes closed,
managers. Often, the project team agree and opening them every 30 minutes to
to waive any claim against each other see where you are.
(except for wilful default). IPD contracts
Key Principles of IPD

-- Intensified early planning
-- Mutual respect and trust and open communication
-- BIM and other collaborative technology used by multiple parties (interoperable data exchange)
Minimum
-- Collaborative decision-making and innovation

-- Early involvement of key participants
-- Co-location of teams (‘big room’)
-- A no-blame working environment
-- Jointly developed and validated project goals
-- Lean principles of design, construction, and operations (‘just in time’, TVD)
-- Integrated leadership – different people taking the lead at different times
Maximum
-- Multi-party or other relational-type contract

-- Shared risk and reward
-- Liability waivers among key participants
-- ‘No-sue’ clauses in contracts
-- Transparent financials (open books)
7
SUSTAINABILITY
Sustainability 80
Rating Tools 81
Green Star 82
ESD Retrofitting Initiatives 84
Carbon Price 86
Carbon Accounting and Reduction 88
eBook – The Road to ‘Green Property’ 89
Incentives 91
A growing public knowledge of

sustainable practices has changed the
face of ‘business as usual’
Sustainability
With the introduction of a carbon price in Davis Langdon research indicates that the
2012, governments and industries have impact of a carbon price on construction
been planning for a carbon-constrained material costs will be marginal even when
environment by adapting their supply applying the highest cost-impact scenario.
chains, purchasing practices and assets. Irrespective of the debate surrounding
the carbon price, its impact in terms of
Rising utility costs and economic
market-driven demand for lower emission
uncertainty have driven strong demand for
and efficient building practices will be
investment in energy-efficient business
significant. Government drivers such as
solutions. The benefits of pursuing energy-
mandatory reporting of energy efficiency
efficient, carbon-reduced business
will also continue to grow in coming years,
practices include reduced maintenance,
as governments seek industry data to
waste, energy and water costs.
better understand the nature of our cities
From a client/tenant perspective, there is a and how we use them.
growing pool of evidence that higher yields
New Zealand Emissions Trading Scheme
and prices will be paid for higher-rated
products. The New Zealand government was one of
the first in the world to introduce a nation-
Other benefits of sustainability initiatives
wide emissions trading mechanism, which
for building owners include:
began on 1 July 2010. Emissions-intensive
-- potentially higher occupancy rates sectors of the New Zealand economy will be
-- higher future capital value phased in over time, and liquid fossil fuels,
-- reduced risk of obsolescence waste and agriculture are expected to join
the scheme after 2012.
-- less need for refurbishment in the
future The Australian and New Zealand
-- ability to command higher lease rates governments have agreed to pursue plans
-- higher demand from institutional to link the two countries’ emissions trading
investors schemes by 2015. The benefits of linking
-- lower operating costs the schemes would enhance the scope for
efficiencies and eventually link in with
-- reduced tenant turnover
other carbon cap-and-trade schemes in
-- lower maintenance and operational costs.
other countries.
Rating Tools
The uptake of green rating tools has Offices
increased globally – especially in the UK
-- NABERS Energy
and the US, where their use has become
mandatory in many areas. A common -- NABERS Water
feature of the international, Australian -- NABERS Waste
Green Star and National Australian Built -- NABERS Indoor Environment
Environment Rating System (NABERS)
Homes, Retail, Hotels and Shopping
tools is their strength on environmental
Centres
issues, but they are largely silent on
social and economic issues – all three are -- NABERS Energy
required for ‘triple bottom line’ reporting. -- NABERS Water
NABERS 6 Star NABERS Tools Currently Under
Development
NABERS is a national initiative managed
by the NSW Office of Environment and -- NABERS Data Centres (expected
Heritage. A performance-based rating to launch mid-2012)
tool for existing buildings, it measures the -- NABERS Commuter Transport
operational performance of a base building -- NABERS Schools
or tenancy’s energy and water use. The
level of uptake of NABERS in the office
accommodation market is reported as The new rating scale
having reached 60 percent of all Australian
0 Very poor
CBD buildings’ floor space. NABERS has
1 Poor
been adapted for the Commercial Building
Disclosure (CBD) program for offices, to 2 Below average
enable an energy-efficiency rating to be 2.5 to 3 Average
disclosed. 4 Good
5 Excellent
To acknowledge the market-leading
6 Market leading
performance of several Australian
buildings, in August 2011 the NABERS
rating scale was extended from 5 to 6
stars. As the purpose of NABERS is to drive
improved environmental performance, this
additional star is to ensure that NABERS
continues to offer an aspirational target
to drive innovation.
Green Star
Likely Green Star Credits

1 2 3 4 5 6 7 8 9
Green Star Accredited Professional
Commissioning Clauses
Building Tuning
Management Independent Commissioning Report
Building Users' Guide
Environmental Management
Waste Management
Ventilation Rates
Air Change Effectiveness
Carbon Dioxide Monitoring and Control
Daylight
Daylight Glare Control
High Frequency Ballasts
Indoor Electric Lighting Levels
Environmental External Views
Quality
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 8 12 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
4 Star Topsoil
Land Use Reuse of Land
and Ecology Reclaimed Contaminated Land
Change of Ecology Value
5 Star Refrigerant ODP
Refrigerant GWP
Refrigerant Leaks
Watercourse Pollution
6 Star Emissions
Discharge of Sewer
Light Pollution
Legionella
Insulant ODP
Credits Innovative Strategies and Technologies
Available Innovation
Exceeding Green Star Benchmarks
Environmental Design Initiatives
Source: Green Building Council of Australia Technical Manual Green Star Office Design Version 3
Green Star
The growth of the Green Building Council of The Green Star PILOT rating tools currently
Australia’s Green Star tool has been strong. available are:
Since its launch in 2003, almost 400 (as of
−− Green Star – Convention Centre PILOT
December 2011) Green Star certificates
have been awarded, with nearly 550 −− Green Star – Public Building PILOT
building projects registered for Green Star
−− Green Star – Communities PILOT
certification. The year 2011 registered the
(mid-2012).
highest number of Green Star certifications
in a calendar year (100) – the last peak was Currently under development is:
88, in 2009.
−− Green Star – Performance.
Green Star tools currently available are:
For projects not eligible to use any of the
−− Green Star – Education v1 existing Green Star rating tools, the Green
Building Council of Australia launched
−− Green Star – Healthcare v1
Green Star – Custom, which enables
−− Green Star – Industrial v1 projects outside the scope of current
Green Star rating tools to achieve Green
−− Green Star – Multi Unit Residential v1
Star certification:
−− Green Star – Office v3
−− Green Star – Custom Tool Development.
−− Green Star – Office As Built v2
−− Green Star – Office Design v2
−− Green Star – Office Interiors v1.1
−− Green Star – Retail Centre v1.
ESD Retrofitting Initiatives

Selecting the most appropriate ecologically Davis Langdon recommends an integrated
sustainable development (ESD) initiatives approach that considers other factors such
as part of a retrofit in lower-grade office as environmental impact, typical building
buildings is one of the most important steps features and climate or other regional
in the building performance improvement factors. Based on the scoring process,
process. the top ESD initiatives recommended
for stakeholder benefit include a BMS
Referencing leading property management
installation or upgrade, energy and controls
literature such as the Property Council’s
audits, removal of any asbestos, and having
Existing Buildings // Survival Strategies,
a building management team on site. When
Davis Langdon distilled a list of initiatives
these initiatives are further weighted based
that were scored according to their benefit
on environmental benefits and suitability,
for each main stakeholder – owner,
the audits and recommission of existing
tenant, facility manager and maintenance
plant score highly. Others, such as installing
contractor.
external window shading, rank highly but
would involve more disruption to the tenant.
Top-Ranked ESD Initiatives by Stakeholder Benefit

Note: A score out of five representing the benefit to each stakeholder
group was attributed to each ESD Initiative.
20
15
10
0
HVAC redesign (chilled beams)
External shading
Gas over electric central hot water heaters and boilers
Water/energy/waste targets
Building management team on site
Update/create builder user guide

Asbestos survey/removal
Energy audit
Controls audit
Recommission existing plant
BMS installation upgrade
Waste management plan
Water leak detection
High frequency ballasts
Comprehensive preventative maintenance program
Programme lighting control system
Low maintenance, durable materials
Electric, water and gas monitoring - submetering

Environmental Management System
Waste separation and recycling facilities

Centralised waste
External lights on movement sensors
Low flow showerheads
Water efficient appliances
External window shading
Building air tightness

Natural ventilation over mechanical
HVAC zone control
Lighting upgrade
Chiller replacement
Drought resistant landscape design
Cooling towers with a minimum of six cycles
Replace HFC and HC refrigerants with zero ODP refrigerants
Water audits
0
5
10
15
20
0
5
10
15
20
Photovoltaic Adaptive thermal comfort control
Wind power Economy cycle
Acoustic attenuation for neighbours
Owners
Demand ventilation control
Increase glazing performance Building Sustainability Committee
Skylights Variable speed drives on pumps and fans
Light shelves Update operating/maintenance manuals
Reduced office lighting zones Refrigerant leak detection
Power factor correction Fire hydrant test water tank

Low irritant non - chemical cleaning products
Tenants
Waterless urinals
Clean ductwork
Real time public transport information
Time switches
Bicycle storage and shower facilities

Automatic refrigerant pump down
Internal Plants
Increased outdoor air
Upgrade acoustics
Supply chain management
Dedicated printer exhaust
ESD Retrofitting Initiatives
Replace belt drives with direct drives

Daylight sensor control
Improve light switch labelling
Cogeneration plant
Flow regulators
Facility Managers
Trigeneration plant Low flow/dual flush toilets
CHW Temp reset Air cooled plant
Ground source heat pump/cooling Minimise PVC
Temperature server rooms Upgrade of roof insulation
Communication with community Low VOC products
Accessible open space Internal shading
Green facade Lighting occupancy sensors
Maintenance
Daytime cleaning service Solar film installation
Paint roof with reflective colours Widen temperature set points
Occupant master isolation switch Mixed mode ventilation
Insulation audit Heat recovery on HVAC

Use HHW for zone reheat
Night cooling
Rainwater capture
Dedicated park for carpooling
Filters on stormwater
Grey water plant
Solar boosted domestic hot water
Black water plant
Individual light switches for individual areas
Green roof
Temperature sensors
Recycled concrete
Urinal flush controls
Sustainable timber
Stormwater detention
Page 85

Carbon Price
From 1 July 2012 Australia will have a A detailed assessment on the impact of
$23-per-tonne carbon price as part of the the carbon price has been conducted for
Federal Government’s Securing a Clean two scenarios:
Energy Future plan.
1. Lowest-cost impact scenario – carbon
The carbon price will apply to around 500 price with assistance to emissions-
entities in a limited number of sectors that intensive trade-exposed (EITE) industries
produce carbon pollution from the following
2. Highest-cost impact scenario – carbon
processes:
price without industry assistance.
−− Stationary energy, i.e., emissions are
Key materials associated with the
produced from electricity generation and
construction industry, including steel,
on-site energy generation
aluminium and glass, will likely receive
−− Fugitive emissions, i.e., emissions the highest exemption of 94.5 percent (in
released during the production, the first year, reducing by 1.3 percent per
processing, transport, storage and annum) from the carbon price, thereby
distribution of coal, oil and gas having a minimal impact on commercial
construction prices. Cement is also
−− Industrial processes, i.e., emissions
expected to receive between 66 percent and
from chemical reactions associated with
94.5 percent industry assistance, to shield
manufacturing processes
it from the full carbon price. Although this is
−− Waste, i.e., emissions predominantly from still under negotiation, the likely result will
solid waste sent to landfill and from the be closer to the upper end of the potential
treatment of domestic, commercial and benefits.
industrial wastewater.
However, upstream costs associated with
These sectors cover around 60 percent of increases to the cost of electricity will
Australia’s emissions. likely be passed on. This is expected to be
approximately a 10 percent increase
per MW/h.
A fixed carbon price will remain in place disposing of plant and materials can have
for three years (indexed annually at 2.5 a huge financial effect on the decision to
percent). On 1 July 2015, a price will be choose one system over another.
determined by the market under a cap-and-
It is important to consider the impact of
trade emissions trading system
not only the carbon price but also the
in response to pollution caps imposed by
available incentives that exist during
the government.
the installation, operation and disposal/
The impact of the carbon price on the re-lifing stages. Forward projections of
construction sector will be mutifaceted, and ‘whole of life’ costs will need to consider the
several forms of industry assistance have annual changes during the transition phase
been outlined by the government. of the carbon price (up to 2015) as well as
sensitivities associated with a fluctuating
With the introduction of a carbon price,
carbon price when the system moves to a
investment decisions should take into
market-based mechanism.
account more than just capital costs. The
cost of running, maintaining, replacing and
Indicative Carbon Price Impact on Total Construction Costs by Sector
Carbon Price with Carbon Price without

Area Assistance to EITE Assistance to EITE
Industries Industries
Health 15,000 m2 0.01% 0.27%
Office 60,000 m2 0.02% 0.31%
Industrial 7,000 m2 0.02% 0.32%
High Rise Residential 35,000 m2 0.02% 0.42%

Carbon Accounting and Reduction

In order to better understand the impact of a number of design scenarios
the carbon price on the construction sector, and options can be modelled through
Davis Langdon used its purpose-built this ECM optimisation.
Embodied Carbon Metric (ECM) to measure
It is possible to reduce the carbon footprint
how individual building materials contribute
of a project by making informed decisions
to the emissions associated with a project.
around design and selection of materials.
ECM measures the carbon intensity of The following two ECM case studies of an
building materials. It is based on emission educational facility and a hospital highlight
factors specific to Australia, derived from the clear benefits that understanding
a lifecycle, cradle-to-gate approach for all embodied carbon can bring to a project.
materials used in construction of buildings
By introducing a number of sustainability
or infrastructure. This includes emissions
initiatives – such as cement replacement
from the extraction of raw materials,
in concrete using fly ash and granulated
primary energy sources, manufacturing
blast-furnace slag, and by lowering
and transport.
concrete strength (where suitable) – an
ECM is also used to optimise design, overall reduction in embodied greenhouse-
by calculating potential greenhouse- gas emissions of 20 percent was achievable
gas emissions based on the quantity of with cost implications less than the
materials from a cost-estimate process overall impact of the carbon price, without
for a proposed development. Using current considering the industry assistance.
typical practice and industry best practice,
473
The ECM report provides tailored emissions-saving
alternatives such as: 381
378
alternative materials to be considered by the
314
design team
kg CO2-e/m2
alternative designs to be considered by the

20% Reduction
18% Reduction
design team
the use of recycled content
Traditional
Traditional
cement replacement in concrete using fly ash or

ground granulated blast-furnace slag
coarse aggregate replacement in concrete using
recycled content aggregate or slag aggregate Education Facility Hospital Building
Increased Concrete Costs 8.2% 10.3%

Increased Overall Construction Costs 0.14% 0.2%
Measurable outcomes of the assessment include: Equivalent Operational Emissions

Current Industry Practice 13.4 years 3.5 years
the overall and per-square-metre embodied and Industry Best Practice with
11.3 years 2.9 years
carbon content of the proposed development ECM Optimisation
a comparison of the embodied carbon content with

the estimated operational carbon footprint of the
proposed development
the translation of carbon intensity into nominal terms
based on estimated carbon trading values
eBook – The Road to ‘Green Property’

Davis Langdon’s The Road to ‘Green −− green jobs
Property’ is a regularly updated guide to
−− building Code of Australia changes
addressing the challenges of achieving a
greener built environment. −− retrofitting office buildings
It features valuable information on topics −− water savings from Green Star
such as:
−− energy performance contracting
−− Commercial Building Disclosure (CBD)
−− environmentally sustainable development
program
technologies
−− Green Star rating tools
−− triple-bottom-line reporting
−− retrofitting existing buildings
−− Davis Langdon’s CSR commitment.
−− emerging issues
Visit Davis Langdon’s sustainability sector
−− Embodied Carbon Metric (ECM) site to access a copy of The Road to ‘Green
Property’:
−− Sustainable Systems Integration Model
davislangdon.com.au/ANZ/Sectors/
(SSIM™)
Sustainability/.
−− Government incentives and regulations
Make sure you keep the publication link,
−− green leases as it will be updated as new information
becomes available.
Incentives
Governments provide a number of There are several planned and current
financial incentives to assist property regulations, resources and programs that
and construction businesses adjust to affect the commercial building sector by
a more carbon-constrained business driving change towards more sustainable
environment. Primarily, these incentives construction and operational performance
focus on reducing capital costs, which have of buildings.
traditionally been prohibitive because of
These incentives include rating tools and
the long payback periods associated with
funding schemes. Within these categories
sustainability initiatives.
are those available on a local, state or
national scale.
Current and Proposed Financing Schemes Available to Property Owners

Administrator / Type of Geographic Existing /
Scheme
Source Program Coverage Future program
Commonwealth / Investment loan Australia Existing
Low Carbon Australia
independent company
Tax Breaks for Green Commonwealth / Tax deduction Australia Future
Buildings DCCEE
Commonwealth Certificate (which Australia Future (proposed
Energy Saver Incentive
can be sold to energy national program)
(ESI)
retailers)
Local government / Education / Australia Existing
major cities only networking /
City Switch aspirational target
program for tenants /
owners
Incentives
Low Carbon Australia on similar ‘white certificate’ schemes in
Victoria and New South Wales, an ESI
Low Carbon Australia is an independent
scheme would drive energy efficiency by
company established by the Australian
compelling energy retailers to pass on
Government. With over $100 million in initial
incentives to their customers to save power,
funding, it provides funding and advice
in order to
to promote the use of energy-efficient
meet a pre-determined energy-efficiency
technologies and practices to Australian
target. Large energy retailers would then
businesses. Low Carbon Australia provides
surrender a specified number of energy-
finance and advice to businesses and the
efficiency certificates every year – those
wider community, through programs to
with excess certificates could sell them
catalyse the investment, take-up and use of
to other retailers who may have missed
energy-efficient technologies and practices
their targets.
for cost-effective carbon reductions.
CitySwitch
Tax Breaks for Green Buildings
CitySwitch Green Office is a national
The Australian Government is developing
tenant energy-efficiency program. Run in
the Tax Breaks for Green Buildings
partnership between local councils and
program, which will provide tax incentives
state governments, CitySwitch Signatories
to encourage energy-efficient retrofits
are part of a national network of businesses
of commercial buildings. It is expected to
that are combating rising energy bills and
provide a boost of around $1 billion over the
improving their day-to-day workplace
life of the scheme, to help ‘green up’ existing
operations. CitySwitch (formerly 3CBDs
buildings across Australia.
Greenhouse Initiative) was established by
Energy Saver Incentive the City of Sydney, North Sydney Council,
Parramatta City Council and the NSW
The Energy Saver Incentive (ESI) is
Office of Environment and Heritage. The
currently being reviewed by the Australian
delivery of the national CitySwitch program
Government as a mechanism to drive
is led by the Council of Capital City Lord
energy efficiency in the commercial and
Mayors.
residential built environment. Based
8
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 2012
January February March

S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 6 7 1 2 3 4 1 2 3
8 9 10 11 12 13 14 5 6 7 8 9 10 11 4 5 6 7 8 9 10
15 16 17 18 19 20 21 12 13 14 15 16 17 18 11 12 13 14 15 16 17
22 23 24 25 26 27 28 19 20 21 22 23 24 25 18 19 20 21 22 23 24
39 30 31 26 27 28 29 25 26 27 28 29 30 31
April May June

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

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

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

Public Holidays Industry Picnic Day
Government School Holidays School Staff Dev. Days
RDOs
Note: All holiday dates are accurate at the time of publishing, but may be
Bank Holiday (not state-wide) subject to change.
Victoria 2012

1 2 3 4 5 6 7 1 2 3 4 1 2 3
8 9 10 11 12 13 14 5 6 7 8 9 10 11 4 5 6 7 8 9 10
15 16 17 18 19 20 21 12 13 14 15 16 17 18 11 12 13 14 15 16 17
22 23 24 25 26 27 28 19 20 21 22 23 24 25 18 19 20 21 22 23 24
39 30 31 26 27 28 29 25 26 27 28 29 30 31
April May June

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

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

1 2 3 4 5 6 1 2 3 30 31 1
7 8 9 10 11 12 13 4 5 6 7 8 9 10 2 3 4 5 6 7 8
14 15 16 17 18 19 20 11 12 13 14 15 16 17 9 10 11 12 13 14 15
21 22 23 24 25 26 27 18 19 20 21 22 23 24 16 17 18 19 20 21 22
28 29 30 31 25 26 27 28 29 30 23 24 25 26 27 28 29
Key:
Public Holidays
Government School Holidays
RDOs
Melbourne Cup
Note: All holiday dates are accurate at the time of publishing, but may be subject to change.
Queensland 2012

1 2 3 4 5 6 7 1 2 3 4 1 2 3
8 9 10 11 12 13 14 5 6 7 8 9 10 11 4 5 6 7 8 9 10
15 16 17 18 19 20 21 12 13 14 15 16 17 18 11 12 13 14 15 16 17
22 23 24 25 26 27 28 19 20 21 22 23 24 25 18 19 20 21 22 23 24
39 30 31 26 27 28 29 25 26 27 28 29 30 31
April May June

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

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

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

Public Holidays Student Free Days
RDOs
Royal Qld Show (Brisbane)
Australian Capital Territory 2012

1 2 3 4 5 6 7 1 2 3 4 1 2 3
8 9 10 11 12 13 14 5 6 7 8 9 10 11 4 5 6 7 8 9 10
15 16 17 18 19 20 21 12 13 14 15 16 17 18 11 12 13 14 15 16 17
22 23 24 25 26 27 28 19 20 21 22 23 24 25 18 19 20 21 22 23 24
39 30 31 26 27 28 29 25 26 27 28 29 30 31
April May June

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

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

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

Public Holidays Family & Community Day
RDOs
Canberra Day
South Australia 2012

1 2 3 4 5 6 7 1 2 3 4 1 2 3
8 9 10 11 12 13 14 5 6 7 8 9 10 11 4 5 6 7 8 9 10
15 16 17 18 19 20 21 12 13 14 15 16 17 18 11 12 13 14 15 16 17
22 23 24 25 26 27 28 19 20 21 22 23 24 25 18 19 20 21 22 23 24
39 30 31 26 27 28 29 25 26 27 28 29 30 31
April May June

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

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

1 2 3 4 5 6 1 2 3 30 31 1
7 8 9 10 11 12 13 4 5 6 7 8 9 10 2 3 4 5 6 7 8
14 15 16 17 18 19 20 11 12 13 14 15 16 17 9 10 11 12 13 14 15
21 22 23 24 25 26 27 18 19 20 21 22 23 24 16 17 18 19 20 21 22
28 29 30 31 25 26 27 28 29 30 23 24 25 26 27 28 29
Key:
Public Holidays
RDOs
Adelaide Cup
Tasmania 2012

1 2 3 4 5 6 7 1 2 3 4 1 2 3
8 9 10 11 12 13 14 5 6 7 8 9 10 11 4 5 6 7 8 9 10
15 16 17 18 19 20 21 12 13 14 15 16 17 18 11 12 13 14 15 16 17
22 23 24 25 26 27 28 19 20 21 22 23 24 25 18 19 20 21 22 23 24
39 30 31 26 27 28 29 25 26 27 28 29 30 31
April May June

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

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

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

Public Holidays 11 Jan – Devonport Cup 11 Oct – Royal Launceston Show
Government School Holidays 13 Feb – Royal Hobart Regatta 19 Oct – Flinders Island Show
RDOs 29 Feb – Launceston Cup 25 Oct – Royal Hobart Show
Eight Hours Day 6 Mar – King Island Show 5 Nov – Recreation Day (North)
4 May – Agfest (Circular Head) 30 Nov – Devonport Show
Note: All holiday dates are accurate at the time of
publishing, but may be subject to change.
Western Australia 2012

1 2 3 4 5 6 7 1 2 3 4 1 2 3
8 9 10 11 12 13 14 5 6 7 8 9 10 11 4 5 6 7 8 9 10
15 16 17 18 19 20 21 12 13 14 15 16 17 18 11 12 13 14 15 16 17
22 23 24 25 26 27 28 19 20 21 22 23 24 25 18 19 20 21 22 23 24
39 30 31 26 27 28 29 25 26 27 28 29 30 31
April May June

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

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

1 2 3 4 5 6 1 2 3 30 31 1
7 8 9 10 11 12 13 4 5 6 7 8 9 10 2 3 4 5 6 7 8
14 15 16 17 18 19 20 11 12 13 14 15 16 17 9 10 11 12 13 14 15
21 22 23 24 25 26 27 18 19 20 21 22 23 24 16 17 18 19 20 21 22
28 29 30 31 25 26 27 28 29 30 23 24 25 26 27 28 29
Key:
Public Holidays
RDOs
Foundation Day
Northern Territory 2012

1 2 3 4 5 6 7 1 2 3 4 1 2 3
8 9 10 11 12 13 14 5 6 7 8 9 10 11 4 5 6 7 8 9 10
15 16 17 18 19 20 21 12 13 14 15 16 17 18 11 12 13 14 15 16 17
22 23 24 25 26 27 28 19 20 21 22 23 24 25 18 19 20 21 22 23 24
39 30 31 26 27 28 29 25 26 27 28 29 30 31
April May June

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

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

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

Public Holidays 2 Alice Springs Show Day 6 Picnic Day
Government School Holidays 13 Tennant Creek Show Day 17 Borroloola Show Day
RDOs 20 Katherine Show Day
May Day 27 Darwin Show Day publishing, but may be subject to change.
New Zealand 2012

1 2 3 4 5 6 7 1 2 3 4 1 2 3
8 9 10 11 12 13 14 5 6 7 8 9 10 11 4 5 6 7 8 9 10
15 16 17 18 19 20 21 12 13 14 15 16 17 18 11 12 13 14 15 16 17
22 23 24 25 26 27 28 19 20 21 22 23 24 25 18 19 20 21 22 23 24
39 30 31 26 27 28 29 25 26 27 28 29 30 31
April May June

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

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

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

Public Holidays 16 Jan – Southland 19 Oct – Hawke’s Bay
Government School Holidays 23 Jan – Wellington 29 Oct – Marlborough
Waitangi Day 30 Jan – Auckland & Nelson 16 Nov – Canterbury
12 Mar – Taranaki 3 Dec – Chatham Islands
publishing, but may be subject to change. 26 Mar – Otago 3 Dec – Westland
9
directory
of
key
offices
Australian and New Zealand Offices 106

Major International Offices 108
Australia and New Zealand

Australia Geraldton
Unit 8, 273 Foreshore Drive
Adelaide Geraldton WA 6530
Level 28, Westpac House Telephone: +61 8 9920 4800
91 King William Street Fax: +61 8 9921 7265
Adelaide SA 5000
[email protected]
Telephone: +61 8 8410 4044
Fax: +61 8 8410 4166 Hobart
[email protected] 53 Salamanca Place
[email protected] Hobart TAS 7000
Telephone: +61 3 6234 8788
Bairnsdale Fax: +61 3 6231 1429
48 Bailey Street
[email protected]
Bairnsdale VIC 3875
[email protected]
Telephone: +61 3 5152 1600
Fax: +61 3 5152 1202 Mackay
[email protected] 22 Nelson Street
Mackay QLD 4740
Brisbane Telephone: +61 7 4957 5286
Level 8, 540 Wickham Street
Fax: +61 7 4957 6097
Fortitude Valley QLD 4006
[email protected]
Telephone: +61 7 3221 1788
Fax: +61 7 3221 3417 Melbourne
[email protected] Level 45, 80 Collins Street
brisbane @aecom.com Melbourne VIC 3000
Telephone: +61 3 9933 8800
Cairns
Fax: +61 3 9933 8801
Level 3, 120 Bunda Street
[email protected]
Cairns QLD 4870
Telephone: +61 7 4222 6000 Level 9, 8 Exhibition Street
Fax: +61 7 4222 6001 Melbourne VIC 3000
[email protected] Telephone: +61 3 9653 1234
[email protected] Fax: +61 3 9654 7117
[email protected]
Canberra
Level 2, 60 Marcus Clarke Street Mount Isa
Canberra ACT 2600 53 Barkly Highway
Telephone: +61 2 6257 4428 Mount Isa QLD 4825
Fax: +61 2 6247 1468 Telephone: +61 7 4743 5477
[email protected] Fax: +61 7 4743 9266
[email protected] [email protected]
Darwin Newcastle
Suite 1 A, Level 1, CML Building 17 Warrabrook Boulevarde
59 Smith Street Warrabrook NSW 2304
Darwin NT 0800 Telephone: +61 2 4911 4900
Telephone: +61 8 8981 8020 Fax: +61 2 4911 4999
Fax: +61 8 8941 1092 [email protected]
[email protected]
[email protected]
Perth New Zealand

GPO Building, Level 6, 3 Forrest Place
Perth WA 6000 Auckland
Telephone: +61 8 6430 2900 Level 10, Citigroup Centre
Fax: +61 8 6430 2999 23 Customs Street East
[email protected] Auckland 1010
[email protected] Telephone: +64 9 379 9903
Fax: +64 9 309 9814
Rockhampton [email protected]
Level 1, 130 Victoria Parade
47 George Street
Rockhampton QLD 4700
Newmarket Auckland 1023
Telephone: +61 7 4927 5541
Telephone: +64 9 379 1200
Fax: +61 7 4927 1333
Fax: +64 9 379 1201
[email protected]
[email protected]
Singleton
St. Patrick’s Commercial Centre Christchurch
Queen Street Unit H, 1 Brynley Street
Singleton NSW 2330 Hornby 8013
Telephone: +61 2 6575 9000 Telephone: +64 3 366 2669
Fax: +61 2 6575 9099 Fax: +64 3 366 9231
[email protected]
Sunshine Coast
Level 1, Mayfield House Hamilton
29 The Esplanade 121 Rostrevor Street
Maroochydore QLD 4558 Hamilton 3204
Fax: +61 7 5479 1832 Fax: +64 7 834 8981
Sydney Tauranga
Level 23, 420 George Street Level 1, 17 Grey Street
Sydney NSW 2000 Tauranga Central 3110
Fax: +61 2 8934 0001 Fax: +64 7 927 3082
[email protected]
Wellington
Townsville Level 15, Davis Langdon House
Level 1, 21 Stokes Street 49 Boulcott Street
Townsville QLD 4810 Wellington 6011
Fax: +61 7 4721 3766 Fax: +64 4 473 3778
[email protected] Level 10, 135 Victoria Street
Te Aro Wellington 6011
Telephone: +64 4 382 2999
Fax: +64 4 382 2998
[email protected]
Major International Offices

Global & Americas Europe
Los Angeles (Worldwide Headquarters) London
555 South Flower Street, Suite 3700 MidCity Place
Los Angeles, CA 90071-2300 71 High Holborn
United States London WC1V 6QS
Telephone: +1 213 593 8000 United Kingdom
Fax: +1 213 593 8730 Telephone: +44 (0)20 7645 2000
Fax: +44 (0)20 7645 2099
New York
100 Park Lane Moscow
New York, NY 10017 29 Serebryanicheskaya nab
United States 109028
Telephone: +1 212 973 2999 Russia
Fax: +1 212 682 5287 Telephone: +7 495 782 7360
Fax: +7 495 783 7361
Asia Middle East

Hong Kong Shatin The Towers at the Trade Center
8/F, Grand Central Plaza, Tower 2 West Tower
138, Shatin Rural Committee Road Level 7, PO Box 53
Shatin Abu Dhabi
China United Arab Emirates
Telephone: +852 3922 9000 Telephone: +971 2 410 9400
Fax: +852 2691 2649 Fax: +971 2 410 9401
A full listing of AECOM offices globally is available at aecom.com.

About AECOM
AECOM is a global provider of professional technical and management support
services to a broad range of markets, including transportation, facilities,
environmental, energy, water and government. With approximately 45,000
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 technical excellence in delivering solutions that create, enhance and
sustain the world’s built, natural and social environments. A Fortune 500
company, AECOM serves clients in more than 130 countries and has annual
revenue of US$8.0 billion.
About Davis Langdon

Davis Langdon provides the Program, Cost, Consultancy capability within
AECOM, which includes a comprehensive suite of construction consulting
services that focus on reducing client risk and improving value.

Blue Book 2012
14th Edition © 2012
davislangdon.com
aecom.com

2012 Property and Constrution Industry 2012

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THE BLUE BOOK

© Davis Langdon Australia Pty Ltd

This, the 14th edition of The Blue Book,

Australian Market Conditions 7

Australian Construction Output 8

Australian Construction Output ­

Total Building Work Done 2010-2011

Non-residential Building Activity by State

14% 13% 15%

26% 23% 24% 22% 23% 23%

Change in Change in Change in

Residential Construction Activity

Construction activity in the multi-unit Building approvals for multi-unit residential

Multi-unit Residential Building Approvals

Source: ABS 8731.0

Separate House Semidetached Flat Other

Source: National Housing Supply Council 2011

Davis Langdon Construction Sentiment Workload

Sentiment Workload Expectations and Change in Building Work Values

Engineering vs Building Work Done (Selected States)

NSW Building QLD Building VIC Building WA Building SA Building

Source: ABS 8755.0

Engineering Yet to Be Done

June 2008 June 2011

Oil and Gas

Project Type (A$b) Oil and Natural Gas

Note: Figures are as at November 2011. Projects with no

*Gas pipelines include coal-seam gas.

**Other includes oil-fired electricity generation and

Source: ABARES 2011, BREE 2011

Planned Mining Projects by Mining Projects by Expected Start Date

Iron Ore Copper

In FY 2011, the value of transport-related percent) and non-residential building (21

Total Value of Transport Infrastructure Engineering Construction Work Done

Roads and Bridges

Ports and Harbours

Number of Employees by Sector

Water Roads (RHS)

Air and Space Source: BITRE, ABS 2011

Roads and Bridges Infrastructure Engineering Construction Work Done*

Rail Infrastructure Engineering

Work done by the Private Sector for the Private Sector

Work Done by the Private Sector for the Private Sector

Labour Force and Productivity

Comparative Unemployment Rates – Annual Averages, 1900-2011

United States Australia United Kingdom

Source: ABS, Bureau Labor Statistics, National Bureau of

Hospitality, Retail and Service Managers

General-Inquiry Clerks, Call Centre, Receptionists

2004-2005 Legal, Social and Welfare Professionals

Health Diagnostic and Therapy Professionals

Working Days Lost to Industrial Disputes per 1,000 Employees

Business, Finance and Human Resource Professionals

2009-2010 Automotive and Engineering Trades

Source: ABS 6321

New Zealand Construction Output 20

New Zealand Construction Output

New Zealand Building Work Put in Place

Total Residential Buildings

Total Non-residential Buildings

Australian Construction Output