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A LEIGHTON CONTRACTORS PUBLICATION

ISSUE 04

attitudes
Towards 2020 Employee engagement matters Incentives for clean energy generation Australias most secure building

changing

Managing a complex business through both economic downturns and upswings is what distinguishes great companies from good ones. Theres no doubt the key to delivering sustainable growth is all about having the right fundamentals in place.

OUr StratEgy Of dIvErSIty ISnt abOUt bEcOmIng bIggEr fOr tHE SaKE Of EXPanSIOn, It IS tO add valUE tO tHE EXIStIng PrOdUctS and SErvIcES wE dElIvEr.

The transformation of Leighton Contractors over the past five years has laid a solid foundation for our future. Today, every part of our business is performing exceptionally well and we finished the 2008 financial year with record work-in-hand of over $9.6bn, with a good spread of work across all sectors where we operate. This achievement is the culmination of years of commitment, planning and hard work from every one of our people. But, looking beyond the fundamentals, how does the global business environment affect us? We are all hearing a lot in the news about the credit crisis and the volatility of the international financial markets. What do these developments mean for our ongoing success? While we cant pretend to be immune to these economic conditions, the core of our business is in growing markets. The demand for iron ore and coal, for example, are expected to remain strong for the foreseeable future, as is the demand for infrastructure in Australia. All governments in Australia are looking to invest in critical infrastructure in roads and

rail; transport and communications; education; and health and hospitals to drive economic growth. Factors like these give me confidence that Leighton Contractors will continue to grow and remain profitable but its our continued focus on strategic business diversification that really excites me. Our strategy of diversity isnt about becoming bigger for the sake of expansion, it is to add value to the existing products and services we deliver, while helping insulate our core business from the uncertainties of economic cycles. To achieve this, we have systematically built a diverse range of operating divisions, underpinned by long term relationships with key clients. Our journey towards becoming a values based organisation is resulting in better information flows across business units, with core expertise being applied in non-traditional sectors to generate some exciting prospects. In the immediate future, we are applying our expertise in new ways to explore opportunities in the emerging, fast growing sectors of green energy and health care. To support these initiatives, we continue to

grow our team of specialists. We look at our know-how, combined with surety of delivery, as the basis of our competitive advantage and marketplace credibility. None of our success would be possible without our expert teams who work so closely with valued partners and clients. The depth of their knowledge and enthusiasm for continuous improvement underpins what I am confident is our very bright future.

Peter McMorrow Managing Director

LEIGHTON MAGAZINE ISSUE 4

ISSUE 4 LEIGHTON MAGAZINE

cOntEntS

Employee engagement matters

14 Australias most secure building 16 Talking health with Menette 18 Effective leadership in the 21st century 20 Brisbanes brand new busway 22 Changing attitudes 26 Nextgen emerges as major broadband carrier 28 Towards 2020 34 Putting safety in the drivers seat 36 Investing in the health of your people 38 Incentives for clean energy generation 42 Applying green ratings to infrastructure 44 Alluvion tower is born 46 Leading the way 51 Mayfield ramps up switch room manufacturing 51 Industrial and Services Whyalla bound 52 Alliance improves Auckland roads 53 Northern Hume Alliance innovation workshop boosts safety 54 A cause worth trekking for 56 Delivering the promise
lEIgHtOn magaZInE ISSUE #4
Printed on HannoArt Silk. Manufactured using low environmental impact pulps. ISO 14001 EMS, EMAS and OHSAS 18001 accredited. Published by Leighton Contractors Pty Limited Level 8, Tower 1, 495 Victoria Avenue Chatswood, NSW No part of this publication may be reproduced or copied in any form without written permission from Leighton Contractors Pty Limited. LEIGHTON is a trade mark of Leighton Contractors Pty Limited. Leighton Contractors Pty Limited 2007. (All rights reserved) DISCLAIMER The opinions expressed in this publication do not necessarily represent the views of Leighton Contractors Pty Limited or its related companies. (we or us). We make no representation or warranty as to the reliablity, accuracy or completeness of the information contained in this publication which should not be relied upon for commercial purposes.

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Talking health with Menette

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Effective leadership in the 21st century

Brisbanes brand new busway

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Feature: Employee engagement matters

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Changing attitudes

22

Towards 2020

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Investing in the health of your people

36

Incentives for clean energy generation

38

Applying green ratings to infrastructure

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Leading the way


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LEIGHTON MAGAZINE ISSUE 4

Employee engagement matters


Employee engagement has gone beyond warm and fluffy to become a key performance driver. Employee research expert David Croston looks at the engagement strategies leadership teams are using to reduce turnover, build commitment and lift the bottom line.

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ISSUE 4 LEIGHTON MAGAZINE

EmPlOyEE EngagEmEnt

tHE mOOd and mIndSEt Of EacH wOrKEr dEtErmInES HOw mUcH EffOrt tHEy arE PrEParEd tO InvESt In tHEIr jOb.

Research shows engaged employees are more satisfied, loyal and productive than their disengaged colleagues. In a tightening labour market, and with continual pressure to deliver growth, this makes employee engagement an important new area of focus for leadership teams.

Yet, although leadership teams are familiar with the challenge of competing for capital and customers, the attraction and retention of talented employees is a battle that demands a different set of skills. The old solution was to throw money at the problem. However, in this new world order, management cannot expect to buy their workforces loyalty and commitment. Instead, they need to look at creating a workplace that encourages people to be and do their best. This can sound incredibly soft and fluffy, but the reality is very different. A well-designed engagement program sets out to liberate a workforce, to create an environment where the emphasis is on trust, purpose, passion and performance. This begs the question, what is employee engagement? Put simply, it is a measure of what people are thinking and feeling when they arrive at work and their standard of behaviour on the job. The mood and mindset of each worker determines how much effort they are prepared to invest in their job. So, for example, engaged employees typically turn up for work full of energy and enthusiasm. They know what they have to do and theyre keen to get on and do it. They require little or no supervision, and are highly productive and profitable.

In fact, the difference in the results delivered by companies with high and low employee engagement is startling. One post-survey research study found three key financial indicators operating income, net income and earnings per share (EPS) rose when engagement was high and fell when engagement was low. It revealed high employee engagement delivered a 52 per cent difference in operating income growth and a 39 per cent difference in EPS.1 But how do you know what to improve to achieve these results? A robust employee engagement survey offers a place to start, painting a precise picture of where senior teams should focus their efforts. Its findings translate into an engagement strategy to address specific workplace issues preventing employees from intellectually and emotionally committing to their work. That strategy will be different in every company. For example, one large financial institution found it needed to improve workplace relationships. The company ran two-day workshops to help employees understand the impact their actions had on others. The workshops created a surge in workplace satisfaction, as employees altered their approach and began to treat each other with trust and respect. In another instance, a global IT firm focused on engaging and aligning its workforce around managements new vision and strategy. The leadership team invested substantial time and resources helping employees develop a deep understanding of their role in executing the strategy. The results were impressive, with staff engagement, client satisfaction and bottom line performance all soaring. Finally, a large telco took decisive action to improve the experience employees had while they were at work, looking at every employee touchpoint. The resulting comprehensive initiative addressed reward and recognition, health and wellbeing, learning and development, and workplace volunteering. The payback: employee engagement, customer satisfaction and financial performance all improved.

The results from these programs and many others make clear the link between employee engagement, performance and profits. Leadership teams that manage to shift even a small percentage of their workforce up the engagement curve can expect to see a dramatic improvement across their key performance indicators. It is this promise that ensures employee engagement will sit at the top of managements agenda for some time to come. David Croston is a director of Inside Research, and the author of Employee Engagement: The People-first Approach To Building A Business.

Successful engagement programs

The top and bottom line of employee engagement


Metric Operating income Net income growth Earnings per share
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Difference between companies with high or low employee engagement 52.0% 17.5% 39.0%

Conversely, disengaged employees wander into work stifling a yawn. As soon as they arrive they start counting the hours until they can leave. They require constant supervision, but this close monitoring of their work does little to elevate their disappointingly low productivity levels. Often, people with this attitude can present a significant safety risk to business. These descriptions may suggest the problem lies with the individual employee, but this is rarely the case. More often than not, the problem lies with the employees workplace environment. Top-down, command-and-control cultures identified by poor inter-personal working relationships commonly generate low levels of employee satisfaction, loyalty and commitment. Unsurprisingly, problems in these areas have a negative effect on a companys financial performance.

1 2 3 4 5

Establish the links between people, performance and profit Take into account the deep and complex roots of employee motivation Address higher order needs, such as belonging, recognition and achievement Engage employees around achieving the corporate vision and strategy Build commitment around a set of shared company values

1 Towers Perrin-ISR: Engaged Employees Help Boost The Bottom Line, June 2006.

ISSUE 4 LEIGHTON MAGAZINE

EmPlOyEE EngagEmEnt

rUlES Of EngagEmEnt
Employee engagement is at the heart of Leighton Contractors four-year transformation from a company with no dedicated HR department to one with a values-based culture supported at every level.
In 2005 two things happened, says Organisational Development Manager, Mick Duffy. First, we realised the skills squeeze meant we had to attract and retain good people in order to grow. Second, we adopted a values-based leadership approach because our leadership team saw the business benefits it would bring. The company also introduced an employee engagement model designed to make people feel so proud, valued and attached to Leighton Contractors, they would think twice about leaving. While the strategy is consistent across the company, divisional managers can adapt it to their needs.

any cOmPany can OffEr mOrE mOnEy, bUt nOt many arE matcHIng OUr InvEStmEnt In crEatIng a cUltUrE wHErE valUES arE lIvEd.
We use every medium from toolbox talks and group forums to the intranet, emails and face-to-face performance development reviews, and constantly assess the value we get from each one. We want employees to be proud of being part of the team, to be able to see and feel their aspirations can be satisfied working at Leighton Contractors. Ray uses his locally-adapted business updates at project sites to reinforce the Companys values and stay in touch with local sentiment. After a recent forum someone told me they had just turned down a job offer with a competitor because of the effort we put into our values. Any company can offer more money, but not many are matching our investment in creating a culture where values are lived. With staff from different backgrounds spread countrywide and a business model that relies on teamwork, Industrial and Services Division General Manager, Bob Bennetto, uses communication to break down traditional silos and engage people as he builds a new capability. We want to create a substantial, viable, sustainable business and having a unified team of quality people is essential, he explains.

From principles to practice


For Ray Sputore, General Manager, Western Region Construction, good engagement starts with good communication. The importance of employee engagement and what it means, varies from person to person, so we tailor the information we provide and how we provide it, to cater to different needs, he says.

Employee engagement impacts financial performance


40 20 0
-3.8 27.8 19.2 13.7 -11.2 17.1 -5.9

Our communications strategy is helping to unite our people under a clear business direction, that is consistent with the rest of Leighton Contractors and our values and clearly signals to our customers who we are and what we stand for. As well as newsletters, an intranet page and email updates, Bennetto uses video conferencing to involve remote-based employees in group meetings. Soon to commence is a trial of remote communication technologies so that sites such as Alcan Gove (NT) can feel part of the team. Nowadays people expect to have several career changes in their lifetime. We want them all to be with Leighton Contractors, says Bob.

Bob Bennetto

-20
-32.7

-40

Change in Operating Income

Net Income Growth Rate

EPS Growth Rate

Change In Total Assets

If you get good people and invest in them, it makes good business sense to retain them and provide opportunities for them to develop careers within the company.

High Employee Engagement

Low Employee Engagement

Based on a median split of the 50 companies, High Engagement Mean = 79%, Low Engagement Mean = 66%, over a 12 moth period. Source: Towers Perrin ISR

Ray Sputore

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EmPlOyEE EngagEmEnt

walKIng tHE talK


When investing in values was first suggested, Chief Financial Officer and Executive Management Team (EMT) member Peter Pollard was sceptical. He felt Leighton Contractors already had strong values and articulating them would do nothing but make consultants rich. Today, he is one of the loudest advocates for the benefits of being a values-based culture.
Its changed how employees act, how clients and communities think about us, and made us more sustainable, he says. Our employee engagement strategy relies on the EMTs ability to communicate our values and model the associated behaviours to as many people as possible. We seize every opportunity to do so and I am constantly amazed at the degree of interest at every level. This commitment is why you will see Peter at the annual Group Company Update for staff and their partners from Adelaide to Auckland, and the Leighton Excellence Awards, which recognise achievement across the business. Visiting project sites, addressing leadership programs, speaking at the Leaders Summit employee engagement is time-consuming, but Peter believes it is clearly linked to improved business performance. With the employee survey and performance review and development processes now values-focused and feeding into business planning, Peter acknowledges that values are firmly embedded into Leighton Contractors but still feels more work is needed. We are a dynamic, growing organisation, he points out. Engaging employees around being a value-based culture is a continuous journey we can never say there is nothing more to do.

PUttIng EmPlOyEE EngagEmEnt On tHE agEnda


When HWE Mining became part of Leighton Contractors in early 2006, Craig Laslett, Executive General Manager for Leighton Contractors Resources Division knew that engaging employees through this transitional period was a key part of the successful acquisition.

Our people have always been our most important asset and it was clear from the outset that engaging our employees through this period of change was critical to ensuring we maintained a strong workforce with a consistent, harmonious culture, he said. We started with grass roots communication and engagement techniques such as reaching employees through Unearthed our employee newspaper, holding regular Group Updates at our mine sites and exploring new and different ways, such as Radio Mining, to engage our hard-to-reach employees. As the company has grown and evolved, so too has our thinking and our resourcing around employee engagement. Our Employee Services team has taken the step of employing dedicated employee engagement specialists to build from our existing initiatives. Organisational Development Manager for HWE Mining, Mranda Cecich notes how the focus on engagement continues to energise the business. One of the activities this team had success with was a Project Manager forum, where taking a targeted, strategic approach to retention was discussed as a key issue. Held in Perth in August, this forum also addressed impending changes to industrial relations and what that may mean for our workforce. The forum became a platform for developing managers awareness of employee engagement, sharing ideas and empowering them to act locally. We focused on key development areas arising from last years company wide employee engagement survey Your Say. Now the managers are prioritising all the ideas for inclusion in the engagement framework we are developing. Other engagement activities that have been rolled out across the Resources Division are the awards nights, on-site focus groups and increasing participation in Leighton Contractors career development programs. The forum demystified employee engagement by helping managers realise that they are already doing it, and that by taking a more strategic and integrated approach, we will support them to do even more, says Miranda.
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EngagIng EmPlOyEES arOUnd bEIng a valUE-baSEd cUltUrE IS a cOntInUOUS jOUrnEy wE can nEvEr Say tHErE IS nOtHIng mOrE tO dO.
Peter Pollard

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InfraStrUctUrE InvEStmEnt

Australias most secure building


The Australian Defence Force takes the keys to Australias first joint operations command centre: the state-of-the-art $300 million Bungendore facility.

Its Australias most secure building: a single installation covering approximately 28,000sqm that, for the first time, will house under one roof 750 strategic and operational staff from the army, navy, air force and special services. The $300 million Headquarters Joint Operational Command (HQJOC) became fully operational on November 14, after a 16 month construction phase completed by the Praeco Consortium, jointly sponsored by Leighton Contractors and ABN AMRO. Its not only the most secure building in Australia, its one of the first Commonwealth projects to attain a five star Australian Building Greenstar rating, says Infrastructure Investment Project Manager, Peter Robertson.

Its an extremely efficient building even though its probably one of the most complex services related buildings in the country. HQJOC is totally selfsufficient in water, collecting run-off, drawing supplies from a water bore and containing its own water and sewerage treatment systems. The project was inherently challenging. The entire HQJOC has a top security classification, the first for Defence on this scale. That meant more than 300 project staff and contractors had to obtain Defence Department security clearance during the design and construction phase. Security becomes even more of a priority now the project has entered its operations phase, says NSW/ACT Building Project Manager, Tom Ussia.

The facility has an extreme level of reliability and redundancy, so it can remain self-sufficient without its operational ability being compromised. The 220ha rural site is near Bungendore, approximately 40km from Canberra, requiring project staff to spend extended periods away from home. Frequent social support activities fostered a team spirit during the construction phase. The new headquarters will enhance the effectiveness of joint planning and the allocation of resources for military operations, as well as supporting peacetime needs such as co-ordinating aid delivery and responses to natural disasters. It was the first infrastructure Public Private Partnership entered into by the Commonwealth Government.
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HEALTHCARE

talKIng HEaltH wItH mEnEttE


When Leighton Contractors acquired Menette Pty Ltd in mid-2008, it created a one stop service provider for healthcare facilities, with the ability to advise, design, construct, project manage and maintain a wide range of social infrastructure projects.
Designing and maintaining hospitals is a highly specialised field, requiring high performance of critical building systems in a tightly regulated environment. With as many as 85,000 assets per project, a hospital requires failsafe breakdown maintenance, preventative maintenance and lifecycle replacement. Thats where Menette comes in. Melbourne-based Menette has been providing facilities management for over 15 years, and offers a host of services that complement Leighton Contractors experience in hospital construction and refurbishment to provide the health sector with a whole of life service. With its extensive experience across more than 70 hospitals Australia-wide, the acquisition will enable Leighton Contractors to both provide and manage hard and soft services in hospitals, says John Hesketh, who runs Leighton Contractors Facilities Management Business. Doctors have a very strong influence in the quality and design of facilities, and therefore need service providers who can talk their language, understand what they require and translate that to an actual facility, he says. Menettes credentials include developing strategic
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frameworks for: facilities and biomedical engineering management delivery; re-engineering existing service delivery models; preventive maintenance programs; capital project management; health asset risk assessments and life cycle costings; asset management planning; and implementing recommended service delivery models. It has also developed inhouse software systems to support its specialised work. One, PRisM (Property Risk Management), objectively measures property-based risks and manages them through the remediation process. Another, Total FMS, automates maintenance management, helping healthcare facilities manage their day-to-day activities such as corrective and preventative maintenance works, assets, contractors and quality activities. Although Menettes processes and systems are specifically tailored for the healthcare sector, they are readily adaptable to other industries where there is a strong regulatory regime or high dependence on building services systems. Thus, they will also be highly suitable for data centres, research facilities, high tech manufacturing, pharmaceutical plants and food processing facilities.
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lEadErSHIP PEOPlE

EffEctIvE lEadErSHIP In tHE 21St cEntUry


nO.1 mOtIvatOr fOr gEn X and gEn y
Avril Henry shared these insights and more with Leighton Contractors future leaders at a recent Leaders summit.

tHE abSEncE Of StrOng lEadErSHIP and a gOOd managEr IS tHE nUmbEr OnE rEaSOn many lEavE OrganISatIOnS.

Peter Drucker, in a book titled The Leader of the Future (1996), observed that there may be born leaders, but there surely are too few to depend on them. Leadership must be learned and can be learned. My personal belief, after working in Human Resources for 14 years, is that leadership is a set of learnable behaviours, which can be adopted and modelled by observing leaders who exhibit ethical behaviours and strong values qualities that followers admire and respect. Unfortunately, for decades in many Australian organisations, we have not invested in developing management and leadership capability, believing that these are soft skills and therefore not as important as technical skills and work experience. Soft skills have long been seen as an unnecessary overhead. Often organisations cut their training and
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development budgets during the annual budgeting cycle when further cost reductions are needed. Ironically, strong leadership is the number one motivator for the two youngest generations in the workforce, namely Generation X (born 1965 1979) and Generation Y (born 1980 1995), who comprise approximately 50 per cent - 59 per cent of Australian workplaces. Their principal loyalty is not to the organisation, rather to their careers and a good manager. The absence of strong leadership and a good manager is the number one reason many leave organisations. When challenged on what good leadership means, Generation X say Leaders who do what they say they will do; with Generation Y, who are impatient by nature, extending this to include when they say they will do it! This strong desire by Australian employees for good

leadership is further supported by the Best Australian Employers surveys conducted by Hewitt Associates over the last seven years, which have identified the number one factor (setting such organisations apart from all others), as strong leadership and a commitment to the people inside the organisation. Currently, approximately 80 per cent of board positions, senior and executive positions in Australia are occupied by Veterans (born prior to 1946) and Baby Boomers (born 1946 1964), who have a different understanding of the key motivators of the two younger generations. In broad terms, Australian leaders fail in the following key areas: Managing poor performance in the workplace Giving regular, constructive feedback

Are poor listeners Exhibit command and control leadership styles. Australian managers and leaders do not like giving feedback, but are even more uncomfortable receiving feedback on their own performance from their subordinates. They do not like giving feedback on poor performance because it upsets people. Studies by Human Synergistics International have found Australian leaders to have one of the highest levels of avoidance leadership globally. This is characterised by fear of engagement, withdrawal from taking responsibility and a preference to defer decision making. At the other end of the feedback scale, we find Australian leaders promoting the tall poppy syndrome; that is we cant tell people when they are doing a good job, otherwise they might get up themselves. So

Australian employees are left with no feedback at all! This is unacceptable to Generations X and Y, who not only expect feedback, but will demand it. They want to know when they are doing well so they can continue to do it. They also want to know when they are not doing well, what they need to do to improve and what their leader or manager is willing to do to help them improve. The Hewitt Associates surveys about Best Australian Employers found that leaders in those organisations are strong communicators who are good listeners and are open and honest in their communication style. One of the qualities of highly effective leaders is that they dont believe they have all the answers themselves. They recognise that the answers to many workplace issues may be found within the organisation and often at levels below management. They

ask questions of employees at all levels, and then willingly listen to their contributions. This earns respect for the leader, but simultaneously demonstrates respect by the leader for the employees. To engage the employees, the leader must help them understand why they must follow, rather than assume they will follow. They need to be more open to being challenged and questioned.

To move towards a more collaborative and inclusive leadership style, leaders need to focus on:

Learning how to give and receive constructive feedback about both good and poor performance Building learning cultures within the organisation, enabling the development of the management and leadership skills of all employees responsible for leading others

Finally, for a leader to be truly Creating positive work environments, where employees are credible, he or she needs to encouraged to be the best they can be lead by example, exhibiting the above behaviours in their own Adopting more inclusive approaches to problem solving lives. In the words of Father by seeking input from a broader range of employees, Chris Riley, CEO of Youth where possible Off The Streets: Leading by Moving from command and control leadership to more example is how leaders make collaborative, inclusive leadership vision and values tangible. It is how they provide evidence that theyre personally committed. And that evidence is what Avril Henry is an executive coach, public speaker, author and people look for and admire Managing Director of Avril Henry Pty Ltd, a leadership and human in leaders people whose resources consulting business. More information is available at direction they willingly follow. www.avrilhenry.com.au.
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InfraStrUctUrE

InfraStrUctUrE

brISbanES brand nEw bUSway


Deep under some of the most important buildings in Brisbanes CBD, the Inner Northern Busway opened six months early, with the promise of significantly reducing congestion by taking up to 700 buses off the roads every day.
Brisbanes new Inner Northern Busway (Queen Street to Upper Roma Street) will not only substantially reduce congestion its also a shining example of community co-operation, excellence in project management and high standards in ecological and sustainable design. By taking around 700 buses a day off the roads, the $333 million project lops an average 20 minutes off commuters journeys. The successful culture of the project team meant that there was shared vision for the projects outcomes and this ensured we kept on target, says Iain Ward, the projects Alliance Manager. The 1.2km Busway links Queen Street to Upper Roma Street, with a 500m tunnel connecting the Queen Street bus station to the Roma Street Forum. It goes on to link up with the Roma Street Rail Station, with one platform sharing bus and train services, before connecting with the existing busway at Countess Street. The route meant construction took place alongside more than 39 neighbouring businesses, next to City Hall, beneath major CBD streets
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and close to major heritage sites including the Albert Street Uniting Church. The complexity in the route was managed through an extensive monitoring program, which saw 150 monitors placed throughout the city to measure vertical and horizontal movement and vibration. A high level of community consultation with stakeholders ensured the project minimised the impact on the city and snared the team the inaugural Leighton Excellence Award for Community Relations. The project also boasts a high level of environmental standards, including automatic lighting which is used only when people are in the area collecting rainwater to use in flushing toilets, and extensive natural ventilation. The busway was opened in May by Queensland Premier Anna Bligh. As well as a family fun day that attracted over 12,000 people, a gala charity ball was held inside the tunnel to showcase the project and raise $160,000 for the Australian Red Cross and Wesley Mission Brisbane.

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cHangIng attItUdES

Changing Attitudes
Seven years ago there might have been a few Aboriginal workers in a workforce of 500 at a Pilbara mine. Thanks to Ngarda Civil & Mining, now there are likely to be more than 200.

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cHangIng attItUdES

OUr tracK rEcOrd PrOvES tHat IndIgEnOUS OrganISatIOnS can bE cOmmErcIally SUccESSfUl, can wOrK cOllabOratIvEly wItH majOr cOmPanIES... and can KEEP majOr clIEntS HaPPy

Mining has created wealth in the Pilbara region of Western Australia for 125 years. Yet until recently, the traditional Aboriginal custodians of the land benefited little. The widely-held view was that indigenous people lacked the skills, training and temperament to be successful mining employees. Ngarda Civil & Mining has worked hard to change this attitude, achieving social and financial success along the way. With projected revenues of more than $200 million in 2009, the Port Hedland based company has approximately 380 employees 50 per cent of them indigenous.

They provide mining, earthworks, road construction and other contract services to industry leaders such as BHP Billiton Iron Ore, Rio Tinto, Pilbara Iron, Newcrest and Woodside. Its a success story that is helping indigenous people to play an active role in the West Australian mining industry. Established in 2001, Ngarda Civil & Mining got together with its shareholders Indigenous Business Australia, the Ngarda Ngarli Yarndu Foundation and Henry Walker Eltin (HWE) to form a joint venture. In 2006, Leighton Contractors acquired HWE to become a 50 per cent shareholder in Ngarda Civil & Mining.

Leighton Contractors has assisted us with expanding our capabilities and our business, says Ngarda Civil & Minings Executive Chairman, Barry Taylor. Since Leighton Contractors became a shareholder, business has more than doubled because now we have the added support to resource any project. While we are both commercially focused, Leighton Contractors is keen to support Ngardas goal to ensure indigenous people participate in the local workforce in greater numbers and at higher levels. Recent contracts include a major project for Woodside

and a $300 million contract to manage BHP Billiton Iron Ores Yarrie mine. Barry believes the Leighton relationship helped with these wins. Contracts like this mean millions of dollars of wages will flow into Pilbara communities, which will help local communities become sustainable, he says. Born in the Pilbara, Barry has seen long term unemployment affect friends and family members. I grew up with one guy who got into trouble with drugs and drink, couldnt get a job. I told him to clean himself up then Id employ him, he recalled.

He did, and now hes one of our most reliable workers. His family has a lifestyle they could never have imagined and hes a terrific role model. While a large number of companies use electronic recruiting systems that automatically exclude applicants with a limited work history, job interviews for Ngarda Civil & Mining are conducted face to face. We can probe more and see where we can utilise individuals, Barry explains. We have low turnover and absentee rates because we offer safety in numbers and a supportive environment to indigenous workers.

While the recruitment process is empathetic, performance is never compromised. Quality control systems ensure adherence to industry standards in areas such as safety and productivity. Everyone used to watch us, waiting for us to fail, remembers Barry. We had to do everything twice as well as other contractors. But now our track record proves that indigenous organisations can be commercially successful, can work collaboratively with major companies like Leighton Contractors and can keep major clients happy. The future includes diversifying into oil and gas and improving

the skills pool. With people shortages across the industry, more investment in training and recruitment is crucial, and planned activities include offering university cadetships and taking on more indentured apprentices. Weve lost many employees to larger clients, but I see this as a backhanded compliment; we skill them up and give them the abilities and the confidence to compete in the general marketplace, said Barry. Our ultimate vision is a company where every employee at every level is indigenous. That would mean we were truly successful.

Pioneering training
Ngardas indigenous training program is helping to relieve local unemployment levels by matching indigenous skills training with industry needs. So far, 50 trainees have graduated from the eight-week heavy plant operator training program, which recruits local indigenous people with little or no prior mining experience. The trainees will be employed at various Ngarda sites.

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tElEcOmmUnIcatIOnS

Brisbane Moree Coffs Harbour Kalgoorlie Perth Dubbo Parkes Newcastle Sydney Canberra

Port Augusta

Adelaide

Shepparton

Nextgen emerges as major broadband carrier


The acquisition of fibre network operator Silk Telecom positions Nextgen Networks as a serious contender in the national broadband marketplace, marrying its existing extensive inter-capital fibre network with an established metro and regional fibre footprint.
With its well established fibre network into the CBDs and urban areas of Perth, Melbourne and Adelaide, Silk Telecom, a provider of next generation telecommunication and data services, was an attractive proposition to Nextgen Networks. The acquisition of Silk significantly increases Nextgens total fibre, adding 1,200km of fibre network and offering it the opportunity to build a mini national broadband network. Already owning and operating the third largest national fibre network in Australia, after Telstra and Optus, with over 8,500 km of subterranean fibre and with the latest generation of optical transmission technology, Nextgen is now well established in the inter-capital market. According to Nextgen Managing Director, Phil Sykes, in addition to the increased fibre reach, the June acquisition of Silk has provided Nextgen with strategic fibre access to many Telstra exchanges and mobile phone towers. Over the last four years, and accelerated by the Silk acquisition, Nextgen has successfully expanded and diversified its original business model of selling point to point inter-capital transmission services.
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Melbourne

In an interesting development, Silk was recently contracted to connect a number of Vodafone towers in Adelaide. Along with Nextgens existing services to Vodafone towers, the combined company now carries a substantial volume of Australias mobile phone and data calls. The acquisition means Nextgen can address new, high growth markets in DSL exchange backhaul, as well as mobile phone tower backhaul driven by 3G mobile data and substantial growth in corporate and government high capacity private data networks. Phil Sykes says the integration of Silk with Nextgen is progressing well, driven by a focus on delivering consistent customer outcomes, maintaining sales momentum and rationalising business processes, operations and technology. We are now one company selling services under the Nextgen brand to a market that continues to demand ever higher bandwidths as everybody and every smart device needs to be fully interconnected.

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tOwardS 2020

InSPIrEd by a nEw wOrld EcOnOmIc fOrUm rEPOrt, andrEw tOd (gEnEral managEr, StratEgIc dEvElOPmEnt, cOnStrUctIOn and rESOUrcES) and PEtEr HIcKS (gEnEral managEr, InfraStrUctUrE InvEStmEnt) dIScUSS tHE fUtUrE Of EngInEErIng and cOnStrUctIOn.
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tOwardS 2020

towards 2020

all Or nOtHIng: an EXtrEmE fUtUrE


The World Economic Forums (WEF) Engineering and Construction (E&C) Community and Center for Strategic Insights Engineering & Construction Scenarios to 2020 aims to stimulate a long term, multi-stakeholder, industry-wide approach to market challenges by presenting four extreme future business scenarios for E&C: The Race: The global economy grows but security concerns hinder relationships, BRIC countries are commercially strong and investors have a short term mindset; E&C is fiercely competitive. The Collaborative Leap: Regulatory harmony and environmental awareness mean governments, researchers and specialist companies combine to tackle ambitious, novel, sustainable projects. The Zero-Sum Game: Wars, shortages and recession result in slumping demand, cost-conscious clients and difficult international working conditions, spelling tough times for E&C. The Aspirational Communities: As globalisation stalls, societies become more aspirational and inward-looking, seeking collaborative, innovative solutions to local infrastructure needs. For more information, visit: http://www.weforum.org/en/initiatives/ Scenarios/EngineeringConstruction/index.htm

The report outlines possible business scenarios in 2020. Is this kind of hypothesising helpful? Andrew Scenario planning is an excellent planning tool - we use a similar process to create our own scenarios. It stimulates strategic thinking, supports a culture of longer term awareness and has practical outcomes that have led to new business opportunities. The new Leighton Future Thinking website, which monitors trends in our business environment, arose from scenario planning. If we can predict where our markets are heading, we can correct our business strategy along the way, instead of being reactive. Thats happening now with climate change. We have been monitoring its potential impact for a while. Now it is changing government policy, we are well prepared.

Peter The WEFs work provides useful global context for our own planning and reminds us that we are all affected by global trends and uncertainties; any organisation thinking it can stay the same has got it very wrong. There are many variables, but we can control how they affect us if we plan ahead and adapt as circumstances change. The trick is not to get so involved in long term planning that you lose short term focus. How hard is it to plan ahead in E&C? Andrew Traditionally forward planning in E&C means three to five years. At Leighton we are looking out to 10 years, beyond what we know and might be comfortable with. The pace of change is frantic but, by projecting this far ahead and monitoring changing trends, we can see what we need to do today to

be prepared for potentially different futures such as those described in the WEF scenarios in 2020. E&C is complex, so it is important to monitor the right trends and not waste time on things that matter in a wider context but make little difference to your business. Peter Historically, short term thinking has dominated the E&C sector; by planning for 2020 we are taking a huge but necessary leap. We have to think longer term because we are facing challenges that cannot be met overnight; they require collaborative solutions and new technologies with long lead times. We must address them now because the cost of doing nothing is too high. What will be the key drivers in the local E&C environment over the next 12 years? Andrew Skills shortages, increased commodity prices, climate

change initiatives, changing social needs and global competition present the most challenges and also opportunities. They will increase input costs, impact how we work and change client expectations. They will also make us work more closely with clients to develop new solutions and approaches, which we can leverage for other projects and use as competitive advantage. The pace of change in the business environment is rapid. Opportunities are opening up to us that, two to three years ago, we would not have considered. As climate change affects the Australian coastline, we will take on more mitigation projects, reconsider our design and construction approaches and alter our health and safety planning to cope with more heat stress, waterborne diseases and regional cyclones. With an increased demand on water because of

If wE can PrEdIct wHErE OUr marKEtS arE HEadIng, wE can cOrrEct OUr bUSInESS StratEgy alOng tHE way
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tOwardS 2020

OUr clIEnt rElatIOnSHIPS arE clOSEr tHan tHEy HavE EvEr bEEn

our growing population and drying climate, we will think up new ideas for water treatment and recycling. It will be a similar situation for electricity, with carbon trading adding to pricing pressures. Peter A lot of local E&C will be driven by global factors. An aging population means we will build more health facilities and aged accommodation choices. It will also reduce our workforce. Public expectations around environmental issues will change the kind of projects we work on and how we work on them; we may have to build a wind farm to supply power to a project instead of using grid electricity. Community expectations will also force governments to make infrastructure a priority or suffer the political consequences. Skills shortages, oil and water shortages, climate change and carbon markets will have
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a big impact. Fuel, water and electricity will cost more, with a flow on effect to the pricing of other key inputs. The environmental impact of materials will influence our supply chain decisions, leading to the emergence of new materials and technologies. How will workforce pressures impact E&C planning? Andrew Skills shortages will drive more cross-industry collaboration and joint ventures enabling us to share skills pools and more long term planning, especially on mega-projects. A few years ago, we invested in international recruitment and training programs because we predicted a people shortage and wanted to stay competitive, ahead of the pack. Now, we not only have enough people, we have imported skills in areas that will ramp up soon, such as railway projects. So, through our planning, we have strengths

in specialist areas that we wouldnt otherwise have. Peter We must take a long term approach to people resources; it takes time to put together a bid or construction team if you want people with the right skills at the right price. To have enough skilled workers for a big project in five years, you must start training them now. The workforce is selfcorrecting and Im not too concerned about shortages in the long term. Environmental drivers will create new opportunities too. For example, if a coal-fired power station closes, jobs will go, but the alternative power source will create jobs requiring different skills. Our whole industry must assist with the necessary skills changes. We are already talking to TAFE about training trades apprentices to think

sustainably on the job, so they automatically consider water conservation and recycling, energy efficiency and smart design. In general, I believe the situation is making us more efficient and forward-looking. How will client-supplier relationships change? Andrew Our client relationships are closer than they have ever been and will continue to evolve. We will work even harder to build stronger relationships with our clients to better understand their businesses and develop solutions together. With projects getting bigger and resources tighter, our clients need to plan more efficiently and so do we. If we know when they want to build something, we can plan ahead for the necessary skills, equipment and materials. Locking these in early will protect clients from paying

higher prices for scarce resources further down the track. Peter Governments will have to deliver better infrastructure, so they will be more willing to engage with the private sector on involvement in public projects; we will enter a new phase of public private partnerships, with different types of previously public projects looking for private money, such as train lines and road maintenance. Ensuring our infrastructure addresses, sustainability concerns, as well as keeping up with population growth, also presents major challenges, requiring long term government planning. We hope to become more involved in the conceptual phase of projects, so we can share expertise and influence decision making.

tHE racE IS On

Edward bUtlEr, SEnIOr analySt, IbISwOrld

The most likely scenario is The Race, where global markets continue expanding and new players, especially from BRIC countries, ramp up domestic and international competition. Major Australian and New Zealand E&C concerns will be directly affected as they are highly exposed to the impact of global trends, with a trickle down effect to smaller companies. By 2020, huge infrastructure projects will fuel tremendous E&C growth here and abroad. The Australian population will be around 26 million, causing major infrastructure pressures. In new economies like China and India the demand for resources and infrastructure will keep growing for 10-15 years. China, in particular, cannot build good quality infrastructure fast enough. They are bullish about their economic future and see infrastructure as a long term investment that will pay dividends later. To meet demand, it will become the norm for large companies to pool complementary strengths and bid as consortia for very big projects. Small companies will also band together to get the critical mass required for larger projects. In such a competitive market, these will be short term alliances, lasting as long as the project. Australian and overseas E&C concerns, especially in Asian countries, will form regional alliances so they can draw on each others personnel, giving both parties a local presence in new markets and undercutting companies from outside the region. With everyone rushing to get multiple projects completed quickly and most bids likely to be within the same price band, the important differentiator will not be price, it will be the ability to hit promised deadlines.

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cSr PrOgram

Putting safety in the drivers seat


It was a great day when the Queensland Minister for Education and Training and Minister for the Arts Rod Welford launched the Leighton Contractors Youth Drive Safe Initiative at Ferny Grove State High School, Brisbane.
The innovative Youth Drive Safe Initiative has given 500 South East Queensland high school students five hours each of free driving lessons with RACQ recommended driving schools, in customfitted Toyota Corollas, purchased and maintained by Leighton Contractors. core values respect for the community and the environment. As a construction company we are aware road safety is one of the nations most serious public health issues, Renaye said. issues and areas identified that had relevance, but one which really hit home was that road fatality rates for young drivers were two-and-a-half times greater than the rest of Queenslands population. We had a strong belief there was an opportunity to be really innovative and create a program which could help address this problem in the community, added Darren.

Developing a CSR program aligned with our values and Darren Weir, General Manager, represented our approach Northern Region Construction, to doing business. We said the Youth Drive Safe are continually looking for Initiative positioned the opportunities to provide The Leighton Contractors company as one that takes positive community outcomes. Youth Drive Safe Initiative its business and community focuses on educating young Over the next 12 months, responsibilities seriously. learner drivers and equipping Renaye and her team Leighton Contractors is them with essential driving undertook extensive well known for building roads, skills and training as a way consultation into road but we also want to be known to help reduce the road toll safety issues with key for creating safer roads, among young drivers. representatives from Darren said. Queensland Government In 2008, secondary school The initiative evolved in departments including students were invited to late 2006 when Strategic Queensland Transport, participate in the program Development Manager, Queensland Police Service, from schools in Greater Renaye Peters suggested Education Queensland and Brisbane, Ipswich and creating and funding a road safety specialists like Caboolture regions, in close program that would not the Queensland University proximity to some of Leighton only meet Corporate Social of Technologys road safety Contractors largest road projects. Responsibility objectives but research group (CARRS-Q) The Northern Region team is align with their core business and RACQ. looking forward to expanding of building roads as well During the research phase, the Youth Drive Safe Initiative as one of the companys there were a number of key further in 2009.

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PEOPlE

Investing in the health of your people


The argument for investing in the health of your people is the same for business as it is for government: its an economic no-brainer. Healthy people are cheaper to sustain and substantially more productive. Plus, businesses get an added bonus people who feel looked after, stay with you longer.
This is particularly important for the health conscious and demanding Gen Y, whose mantra is getting organisations to walk their talk. What better way to demonstrate you care about an individual than by proactively supporting their health with health checks, diet and exercise programs, skin cancer screens and flu vaccinations? If youre seeking to increase an employees sense of belonging to the team, ensure they feel personally engaged and supported to be the best they can be, workplace health interventions tick every box. At the other end of the generational spectrum, with the first baby boomers turning 60, health is also high on the agenda. Many of this push the envelope generation are being forced to pay attention to their health for the first time. The health choices they make now regular exercise, good diet wont just make the difference between vigorous old age and the pain and disability of chronic disease. It will also decide how long they stay in the workforce.
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On average an unhealthy worker will have up to nine times more sick leave than their healthy colleagues, and healthy employees are nearly three times more productive. 1 Given Australias skills shortages and aging population, this is a critical issue. As a nation, we need our mature-aged workers to put off retirement. As skilledstarved organisations, we need our intellectual property, deep knowledge and years of experience to stay in our companies as long as possible and coach the next generation. Even without our demographic challenges, investing in a health workforce has a great rate of return in terms of risk mitigation. A neglected body is open to injury; a malnourished or fatigued mind is prone to error, inconsistent and likely to make poor decisions. Put the two together and youre asking for a long work cover payout and high staff turnover/ training budget.

Health interventions around the Group at Leighton Contractors


Leighton Contractors uses Ford Health to monitor its corporate health programs and statistics; seeking to improve them using a range of health initiatives at different locations, including:

Voluntary employee flu vaccinations Mini health checks Skin cancer screening Toolbox/lunch n learn sessions Group based team building activities such as company tailored Walking Challenges

Tanya Wigg is a dietician and health consultant.


1

Medibank Private Survey, 2006.

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rEnEwablE EnErgy

IncEntIvES fOr gEnEratIOn

clEan EnErgy
The Garnaut Reviews recommendation to incentivise low emission technologies will help drive demand for clean energy infrastructure. Ernst & Youngs Dr Marc Newson assesses the scope of what Garnaut is suggesting and how it is likely to be funded.

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rEnEwablE EnErgy

tHIS rEcOmmEndatIOn wIll SUPPOrt PrOjEctS In arEaS rIcH In rEnEwablE rESOUrcES (InclUdIng wInd, gEOtHErmal, SOlar and OtHErS) and dIStant frOm EStablISHEd tranSmISSIOn cOrrIdOrS.

bUIldIng a SUStaInablE fUtUrE


Leighton Contractors is gearing up to support the emerging renewable energy sector developing a range of alliances and capabilities to play its role in Australias race to meet its renewable energy target.
International Low Emissions Technology Commitment. Under this commitment, they would commit to a specified funding level, but would retain flexibility in how they use funds, which could be spent domestically or abroad, through national or collaborative ventures. At a local level, the Review strongly recommends substantial government financial support for developing low emission technologies. Specifically, it proposes government allocates 20 per cent of permit revenue, up to $3 billion per annum, to this purpose. However, this funding would be restricted to supporting innovative technologies. Garnaut argues projects that can be deemed to be pilot, demonstration or first commercial-scale projects should qualify. Alternatively, he suggests a second method for identifying early movers: a scalar measure of quantity, and an associated cut-off point for the first fleet of early movers of 1,000 megawatts. He recommends providing this support on a matched funding basis rather than through tax breaks, competitive tendering or mandated targets. Dr Marc Newson is Ernst & Young Australias Cleantech Leader in their Strategic Growth Markets team. The Federal Governments target of achieving 20 per cent of renewable energy by 2020 will require massive growth from Australias fledgling energy generation industry. The task of reducing emissions by 10 per cent from 2000 levels by 2020 (a 34 per cent drop from the status quo) is daunting. With the electricity sector accounting for 34.5 per cent of total national emissions, meeting the targets involves introducing 16-18 gigawatts of new generating capacity by 2020, split between gas and renewable energies. Executive General Manager, Phil Cooper, says the scale of the task is unprecedented: If we are going to follow the reduction trajectories, it means theres going to be well in excess of $20 billion of renewable capacity that needs to be built in a very short time frame. There will also be numerous obstacles, ranging from obtaining planning approvals to undertaking construction on a massive scale in some of Australias remotest areas. And then theres the challenge of the constraints that sort of addition will put on the transmission grid. Phil says Australia will also need to expand its expertise in renewable energy technologies.

rEnEwablE EnErgy fUndIng


The Government has committed to introducing a Renewable Energy Target to ensure that 20% of Australias electricity supply is generated from renewable sources by 2020. Measures to modernise the economy for the future and help reduce Australias greenhouse gas emissions within the building and construction industry include: $240 million over four years to support business in making the transition to a low-carbon economy through the Clean Business Australia program. This program will provide support to industry to implement cost-saving energy efficiency measures, reduce greenhouse gas emissions and develop products for market that save energy and water. $500 million over six years for a Renewable Energy Fund to accelerate the development and commercialisation of renewable technologies in Australia and support the new Renewable Energy Target. $150 million over four years for an Energy Innovation Fund to support the development of clean energy technologies in Australia including the establishment of the Australian Solar Institute.

The Garnaut Climate Change Reviews Draft Report pronounced a grave verdict on the impacts of unmitigated climate change on the Australian economy, environment and human society generally. It also made a number of key recommendations for Australia to mitigate the effect of climate change, including introducing an Australian Emissions Trading Scheme and mandated energy efficiency ratings. Many of these recommendations will place onerous tracking and reporting burdens on industry, others will fundamentally change industry cost structures. However, as in any period of significant change, there will be winners as well as losers. For example, in the construction and engineering industries, there are likely to be major opportunities arising from one of Garnauts key recommendations: that the Government provides incentives for clean energy generation.

This recommendation will support projects in areas rich in renewable resources (including wind, geothermal, solar and others) and distant from established transmission corridors. It suggests that, for appropriate projects, early movers and the national transmission planner should share the initial upfront capital costs of the infrastructure project. Thus, public funds managed by the planner could be used to pay for the portion of capacity expected to be taken up by later market entrants. Garnaut proposes funds for this purpose come from Infrastructure Australia and its newly established $20 billion Building Australia Fund. Garnaut also suggests government could initially support establishing carbon dioxide transmission pipelines, with this financial contribution recovered through charging users of the infrastructure.

Wind power is currently the lowest cost renewable energy source. In fact, Leighton Contractors already has experience in the deployment of wind farms, having completed three projects in South Australia and Victoria. But, to meet the targets, 6,000 megawatts, or approximately 3000 turbines, will need to be installed in the next 10 years. And this deployment is likely to be hindered by a supply shortage of turbines, with a two-year wait in some cases. Clearly, the solution will not just be in wind power, Australia will need to investigate every alternative energy option. Multiple technologies need to be deployed if we have any hope of achieving the emission reduction targets. He says, to support this process, Leighton Contractors is already developing other effective

partnerships across a range of renewable energy technologies. We are taking a portfolio view of the renewable energy market, developing competence in a range of renewable technologies. To this end, the company is currently in discussions with an overseas partner with extensive experience in building concentrating solar plants in Europe. It is also co-operating with local parties who have worldleading expertise in carbon capture and carbon storage technologies. Cooper says these efforts are just the beginning. We are also looking at a range of emerging technologies, such as wave energy and geothermal, so when they become cost effective we will have partners and expertise ready to go.

Innovations in low emission technology


Garnaut believes we need a global agreement on minimum commitments to invest in low emission new technologies to ensure an adequate level of funding for research, development and commercialisation. To this end, the Review proposes high income countries support an

Transmission infrastructure
The Review suggests adjusting the regulatory regime governing electricity transmission infrastructure to provide a substantial incentive for clean energy developers to build new capacity ahead of demand.

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InfraStrUctUrE

aPPlyIng grEEn ratIngS tO InfraStrUctUrE


According to the federal governments principal advisor on Climate Change, Professor Ross Garnaut, the design and construction of infrastructure projects will play a significant role in how Australia mitigates and adapts to climate change.
To support this process, the Australian Green Infrastructure Council (AGIC), a coalition of leaders from the Australian infrastructure industry, is developing tools, including a sustainability rating scheme, that will drive more sustainable outcomes from our infrastructure. Organisations and businesses associated with infrastructure projects will be invited to use the rating tool to maximise sustainability initiatives and assure the community and stakeholders that appropriate measures are taken to deliver more sustainable outcomes on their projects. The scheme will include carbon footprint evaluation and other sustainability initiatives to reduce green house gas emissions from infrastructure projects. The rating system will be the driving force behind developing and operating more sustainable infrastructure in Australia from roads and tunnels, railways and bridges, to airports or marinas, water collection grids, or other civil engineering works. The AGIC scheme will be not unlike the successful Green Star rating scheme for buildings, which is administered by the Green Building Council of Australia. It will be entirely voluntary and will include a rating tool, a practical checklist of sustainability risks, and a program of education and training. There will be opportunities and obligations for all parties involved in all stages of an infrastructure project including: financial, design, procurement, tender, construction and operation. Under the scheme, infrastructure sustainability will be assessed across a series of categories including: biodiversity, people and place, project management and governance, economic performance, resources, emissions, pollution and waste and the workforce. The scheme is being developed by senior private and public sector infrastructure professionals from a range of disciplines across Australia including project management, engineering, environmental science, social planning, design, financial investment and community engagement. The initial work is being done voluntarily, with funding being provided by foundation AGIC members for the establishment of a sound governance and administration structure. In the next phase, category authors will be sought via an Expression of Interest process to facilitate content development of the rating scheme requiring considerable support from governments and other sponsors. The scheme will then be trialed on real projects over 2009 and should be released to the market in late 2009. David Hood is the Chairman of the Australian Green Infrastructure Council.

Taking responsibility for infrastructure sustainability


Recognising the importance of the AGIC initiative, Leighton Contractors has taken a leadership position as a foundation member of the organisation. Leighton Contractors Group Sustainability Manager, Tony Stapledon, has also been invited onto the AGIC Board. The company is an active participant in working with AGIC to develop the rating scheme and tools that will assist the industry to deliver more sustainable infrastructure.

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cOnStrUctIOn

allUvIOn wIll mEEt 4 Star grEEn Star and 4.5 abgr ratIngS, wItH ItS HIgH lEvEl Of EnErgy EffIcIEncy and lOw EnvIrOnmEntal ImPact.

Broad Construction Services biggest project, the construction of Alluvion, a 22-storey commercial tower in Perth, has already stopped traffic with a historic concrete pour. Now, the state of the art building has another show-stopper its green credentials.
With its 22 levels overlooking the panoramic views of the Swan River and Kings Park, Alluvion, Mounts Bay Roads newest commercial tower, was always set to impress. Construction began in February with a historic 12-hour non-stop concrete pour, in which 2,250 cubic metres of concrete were poured in the largest undertaking of this type that Perth has seen for decades. We tied up half of Perths concrete supply facilities in one day, with more than 60 concrete trucks pouring from 7am until 8pm, says Broads General Manager for WA, Nick Cater. Ten months later, work is well progressed on level six, with the end of construction scheduled for April 2010. Alluvion will meet 4 star Green Star and 4.5 Australian Building Greenhouse Rating, with its high level of energy efficiency
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Alluvion tower is born

and low environmental impact, including proximity to local transport, services for walking and cycling to work, and extensive use of sustainable materials. Broads flagship project, Alluvion will include 36,000sqm of gross floor area, two levels of car parking, a caf, roof terrace and landscaped gardens. The $110 million project is a joint venture by developers Cape Bouvard Investments and Charter Hall. Broad, a subsidiary of Leighton Contractors, completed the forward works package on Alluvion in December 2007. For Broad as a company its a milestone and further establishes us as one of the major building contractors in WA and across Australia, says Nick Cater.

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EXcEllEncE awardS

by fOcUSIng On OUr yOUngEr EmPlOyEES wE arE acKnOwlEdgIng tHE ImPOrtancE Of nEw IdEaS, yOUtHfUl EnErgy and InnOvatIOn

lEadIng tHE way


In 2008, the Leighton Excellence Awards expanded to recognise the individual contributions of our people. Leighton Contractors Managing DIrector, Peter McMorrow, who helped judged the awards, explains what it takes to stand out in a company of more than 9,000.

When Managing Director, Peter McMorrow, started reviewing the 150 entries for Leighton Contractors 2008 Excellence Awards, he knew exactly what he was looking for. The Awards mirror our expectations for the future direction of our company. So this is about looking beyond what we have already achieved and demonstrating excellence and leadership on a broader scale. In other words, when it came to the People awards were looking for individuals who are role models for our company the benchmark against which we will measure our employees in future. The fact that Leighton Contractors has introduced new categories for Trainees and Apprentices, Leading Hands and Graduates,

as well as Achievement through teamwork, is revealing. Peter acknowledges this focus on the younger generation is a departure for a construction company. In traditional construction companies, the younger generation had to do its time. Recognition came through age and experience. By focusing on our younger employees we are acknowledging the importance of new ideas, youthful energy and innovation. This doesnt mean we dont value the experience of our industry veterans. Far from it these people are currently the life blood of our organisation and vital mentors to all the award winners. But we have to realise that our future will be shaped by the creativity of the next generations and we need to ensure we listen to them.
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EXcEllEncE awardS

EXcEllEncE awardS

OUr fUtUrE wIll bE SHaPEd by tHE crEatIvIty Of tHE nEXt gEnEratIOnS and wE nEEd tO EnSUrE wE lIStEn tO tHEm.

tHE PEOPlE award wInnErS


Managing Directors Award
JoHn AdAMou Visionstream Pty Ltd, new south waLes He says that Leighton Contractors younger employees will also be key players in developing a sustainable company. Professor Garnaut and the other climate change experts are talking about targets for 2050. For many of us, that could well be a date outside our life times, but for the younger generation, its a different story. They have a huge vested interest in making sure the planet addresses sustainability issues and it shows. So what is he looking for in an award winner? People who stand out as exceptional, who by being proactive and seeking new approaches have taken a leadership role, and whove proven that anything is possible. Their submissions demonstrate what can be achieved when we think and act in a way that reflects the best of who we are. Im looking for passion and initiative to seize an opportunity to make a difference; a drive to be the best they can be; and an unwavering commitment to act in a way thats true to our values, as this underpins our continued success and future growth. More than anything, Im looking for people who make a real difference to the experience of others. The point is, by constantly looking for new ways to improve our performance in some of the most challenging areas of our business, we transform more than the lives of our workmates. We are changing industry practices for the better and to me, thats truly inspiring. John Adamou, Field Safety Officer in the NSW Region of Visionstream is recognised by management and colleagues for his exceptional commitment to OHS&E extending this commitment to outside of work. He has driven many initiatives, consistently exceeds expectations with the extent of his work and is passionate about a safe workplace.

Graduate of the Year


ELLy RISHWoRTH site engineer, new ZeaLand A born and bred Kiwi, Elly studied civil engineering at Auckland University before joining Leighton Contractors as a Graduate Engineer in 2007. Working on the Manukau Motorway Extension, Elly displays enthusiasm, good nature and willingness to get involved with all construction activities. Alongside her boundless energy and optimism, all are impressed by her maturity and project focus. In addition to her work on the Eastern Region of the motorway earthworks, Elly has also managed the stormwater drainage subcontract worth NZ $6.5m and has been involved in working with the site environmental management crew to establish and maintain the erosion and sediment controls and the procurement and award of the landscaping subcontract for the project. Recently Elly changed roles on the project and joined the projects bridge construction team. Outside of work Elly is an avid reader and has a passion for running and mountain biking.

Apprentice or Trainee of the Year


JoHn TIddy aPPrentice, northern territory John has been with HWE Mining for over seven years and has recently completed his Heavy Duty Diesel Mechanic trade. During his time as an apprentice he served at numerous mine sites where his maturity, reliability and leadership skills shine through in the many work teams he has been part of. He is highly regarded by his peers and supervisors and achieved outstanding results from his study. John was the winner of HWEs Apprentice of the Year 2008 award. He then entered the WA Apprentice of the Year Awards competition (which covers apprentices of all disciplines) and, at the time of nominating for these People Awards, he had already advanced to the semi-finals. Johns ambition now is to embrace his new career full on and to seek to advance his study towards attaining a Diploma of Mechanical Engineering.

Our People: Leading Hand of the Year


ALAn MCdonALd Leading hand, Victoria Alan is a long term employee of Leighton Contractors, currently at the Deer Park Bypass project in Melbourne. Alan is one of those special people who is committed to doing the role that he knows he can always do well, remaining happy going from project to project as a leading hand. He displays a willingness to venture beyond what is asked of him in the pursuit of accomplishment, both personally and for his team. Alan inspires his team members and embraces opportunities to make a difference in line with our values. He is affectionately known as The General, a clear sign that he is seen by his team as a leader and trainer in every sense. He has trained three new leading hands on Deer Park and is happy to admit that now they are nearly as smart as me. His modus operandi is: do it once, do it right and do it safely, and make sure you tackle the hard bits as you go.

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EXcEllEncE awardS

IndUStrIal & SErvIcES

IndUStrIal & SErvIcES

maKIng a dIffErEncE
Considering how your actions can affect the experiences of others is key to building long term positive change. Brian Egan, Founder of Aussie Helpers, is testament to what can be achieved when you are determined to make a difference. Sharing his inspiring story at the Awards Dinner, Brian recounted a personal journey through war service, drought, depression and hard times which led him and his wife Nerida to establish the charity foundation Aussie Helpers. Aussie Helpers exists to help fight poverty by delivering practical assistance as well as counselling services, lifting the spirits of those severly affected by drought in rural Australia. Another highlight of this years Awards was the opportunity to hear from Country Music Artist, Patron to Aussie Helpers and 2008 Australian of the Year, Lee Kernaghan. For more information, or to make a donation, visit www.aussiehelpers.org.au
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Mayfield ramps up switch room manufacturing


A major new custom built manufacturing facility at Wingfield in Adelaide will enable Leighton Contractors subsidiary Mayfield to expand its operations and deliver a broader, quicker response to the customer.
Acquired by Leighton Contractors four years ago, Mayfield is a manufacturer of low voltage electrical switchboards and transportable switch rooms. The business was recently relocated from its Sturt St operation in the Adelaide CBD to Wingfield, a 12,000 sq km purpose built manufacturing facility to design and manufacture custom and modular low voltage switchboards and motor control centres. The move offers more space and better logistical support for Mayfields expanding business operations. Mayfields transportable switch rooms comprise both low and medium voltage switch gear and associated control systems that can be transported to the client fully fitted out without the need for site installation work. Its applications span the resource and mining sectors. We are addressing the demands of the market by expanding our capability through a purpose built designed fabrication facility utilising lean manufacturing philosophy, says Alan Steele, Manager for Services, Industrial and Services Division within Leighton Contractors. From that we bring shortened delivery periods, with an eye to a customer satisfaction focused culture.

Industrial and Services Whyalla bound


The recent acquisition of a major manufacturing and machining fabrication facility at Whyalla offers a one stop shop for mechanical and electrical trades.

At the crossroads to Olympic Dam and Roxby Downs, the Whyalla manufacturing facility offers engineering, manufacturing and machining services to customers in the Whyalla, Upper Spencer Gulf and Iron Triangle region. Leveraging off its existing mechanical, electrical and instrumentation capability in the region, Industrial and Services will now be able to offer a total on site capability from brownfield, upgrades and installation work through to maintenance services. With 14 years operating in the region, the plant has completed numerous projects for customers in the resources, power, water and steel sectors. With its ability to offer long term service contracts, the acquisition brings to Leighton Contractors an operating foundation to better support continuing growth in the mining sector. Whyallas facilities include an extensive workshop, substantial storage and a skilled workforce spanning a wide range of mechanical and electrical trades.

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INFRASTRUCTURE

Alliance improves Auckland roads


Leighton Contractors is a key member of the Auckland Road Maintenance Alliance, which has started a five year contract to maintain a third of the citys road infrastructure. Alliance Project Manager Lawrence Butcher explains why an alliance contract model can make a difference.
Research has repeatedly shown that alliances are effective vehicles for providing better collaboration and a less adversarial approach to running an infrastructure project. They focus a united team to improve performance and enhance the final outcome. Thats why Leighton Contractors has joined with Auckland City Council, Blacktop Construction Limited and MWH New Zealand Limited to jointly undertake works previously conducted under a number of individual contracts. Alliances can be a better value for money proposition as they provide greater efficiencies, says Auckland Road Maintenance Alliance Manager, Lawrence Butcher. Under the five year contract, which commenced on July 1, the Alliance will provide maintenance services for a third of Aucklands roads, including the busy central business district. The first year involves assessing the condition of the network and developing effective plans based on need. This will include identifying areas that require more investment in what has traditionally been one of Aucklands most poorly maintained localities. The Alliance is responsible for all physical on-road maintenance as well as renewal programmes, design safety improvements and all professional services. It will also help Council obtain external funding and manage stakeholders. Initially the Alliance has been kept busy responding to issues that require immediate maintenance in July and August alone, heavy rain in Auckland saw about 1,700 jobs registered, of which 350 involved emergencies such as potholes or localised flooding. Lawrence Butcher says its a challenge bringing together individuals from four independent organisations into one team and building its own culture on a best-for-project rather than a best-for-company basis. But he believes he has the right team. We handpicked the team for their intellectual currency and experience. We need people who use brain instead of brawn, wholl find clever solutions so we can really make a difference, he says.
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Northern Hume Alliance innovation workshop boosts safety


With more than 2,000 reinforced box culvert units to install beneath 35km of the upgraded Hume Highway, the Northern Hume Alliance held an innovation workshop that dramatically improved worker safety.

SafEty

Traditionally, box culvert construction has been a risky business. Workers have to unload and place the units at height, manually handle base slab reinforcing steel in tight, trench-like conditions, and work at heights of up to four metres to form and pour insitu concrete headwalls. The units, weighing up to 12 tonnes, are usually handled via swiftlift anchors cast into the roof. Dogmen must climb onto the top of the units and stand there to attach the anchors often at heights of up to 3.6 metres. The swiftlift anchors have also been known to tear out of the unit roof under the weight. Before the Northern Hume Alliance (NHA) team consisting of the Roads and Traffic Authority (NSW), Leighton Contractors, Maunsell AECOM, Coffey Geotechnics and Snowy Mountains Engineering Corporation embarked on installing more than 2,000 reinforced box culvert units, it conducted an innovation workshop in Wagga Wagga to come up with a safer approach.

The outcome was a new lifting unit that could be positioned into the box culvert with a crane, without the need for manual assistance. Developed by the NHA team, the devices were manufactured by a local fabricator. Further safety measures were introduced, using Bamtec to reinforce the culvert base slab. This enabled the reinforcement to be craned onto the slab and simply rolled out, rather than being handled manually in cramped conditions. To achieve this, the base slabs were redesigned to be continuously reinforced, thus deleting the expansion and contraction joints. This was shown to actually increase the durability of the end product by eliminating dowelled joints. The NHA is duplicating 35km of the Hume Highway between the Sturt Highway and Holbrook to bring it up to freeway standard with divided two lane carriageways, safer access for adjoining properties and improved line marking and signage.

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A cause worth trekking for


walKIng tHE talK
The way we behave says everything about who we are.
At Leighton Contractors we are proud of our employees commitment and determination to enhance the lives of people in need.

PEOPlE

Congratulations to the teams for taking on the enormous physical and mental challenge of the 100km Oxfam Trailwalker, for devoting so much personal time to preparing and for their tireless fundraising efforts. And thank you to everyone who sponsored our Oxfam Trailwalkers, including the teams major sponsors:
Boral Resources (QLD) Broad Group Holdings Compass Group (Australia) Pty Ltd Clayton Utz Digital Pulse Gavin Anderson & Company Hastings Deering Intersafe KM Splatt & Associates Le Tourneau Liebherr Australia Pty Ltd Macarthur Coal Mineconsult OneSteel Rod, Bar & Wire Paragon Associates Reade Communication Shac Public Relations Soild Energy Stevenson Group Ltd The Cox Group Pty Ltd Tinkler Group Takraf UGM Mining Solutions Wagners Global Services Westrac

How far will you go to help communities in need? Twenty Leighton Contractors employees walked 100km in 48 hours to raise $30,000 on the Oxfam Trailwalker.

Its one thing to put your hand in your pocket to help the most vulnerable in our society; its quite another to put your body on the line. With a passion for trekking and a desire to help communities in need, Patrick Ellis, Business Development Manager, Resources, set about encouraging teams of employees from Leighton Contractors to do more than donate. I felt it was important to ensure everyone had an opportunity to be involved in the cause. I have often found that colleagues want to be involved in causes where they feel theyve succeeded in making a difference there just needs to be that opportunity, Patrick said. Despite the fact that the opportunity required walking 100km in 48 hours, Patrick managed to sign up five teams in a matter of hours, from across Leighton Contractors Resources, Construction and Infrastructure Investment Divisions. This is the second time Ive participated in the Oxfam Trailwalker and Ive never had a problem recruiting people, even when I tell them about the challenge ahead of us. The 100km trek certainly is a challenge, involving a gruelling mountainous track which follows the Hawkesbury through Ku-ring-gai National Park in New South Wales.

Despite this, fellow Oxfam Trailwalker participant Jules Dawson, Administrative Assistant for Infrastructure Investment, insists the high of completing the trek eclipsed the pain. Its amazing that even with all the pain from the trek you feel this sense of personal achievement. Its a feeling that reminds you that youve done something worthwhile not only for yourself but for someone else. The trek was definitely a test of your mental and physical strength. The key to succeeding was never losing sight of the cause we were all trekking for. The teams raised more than $30,000 for Oxfam programs, thanks to the generosity of their many sponsors, which ranged from large businesses, suppliers, colleagues, family members and friends. If you would like to donate to Oxfam Australia and help assist communities around the world who are in need, including indigenous Australians whose life expectancy is almost two decades less than the rest of the Australian population, go to www.oxfam.org.au

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dElIvErIng tHE PrOmISE


Northern Access Road The Northern Access Road project will provide additional transport capacity to Brisbane Airport and surrounding businesses. The project includes 6km of multi-lane roadway with four bridges, a new roundabout, the upgrade of the roundabout at Lomandra Drive to a signalised intersection and a new link road connecting to the International Terminal roundabout. Carborough Downs Located in the Bowen Basin about 170km from Mackay,this $44m project provides underground mine development services for Carborough Downs Coal Management. Led by Leighton Mining, the two-year contract provides for the development of underground roadway including main headings and bord and pillar development. Ballina Bypass Alliance Working in alliance, Leighton Contractors design and construct expertise will provide approximately 12.4km of dual carriageway as part of the Pacific Highway upgrade program. The Ballina Bypass project will stretch from South Ballina at the intersection of the Bruxner and Pacific Highways to just north of Ross Lane, Tintenbar, bypassing a 19km section of the Pacific Highway and delivering significant safety improvements and time savings for traffic. Infrastructure Investment Infrastructure Investment is a specialist division within Leighton Contractors, with expertise in ifrastructure investment, development and management. Infrastructure Investment takes a partnership approach in seeking to optimise and deliver the best overall project outcomes. The team works in conjunction with other divisions, as well as external technical partners and advisors, to provide clients with comprehensive and innovative tools. i
Area C, WA

PrOjEct OvErvIEw

PrOjEct OvErvIEw

wItH OvEr $9bn Of fOrward wOrK In PrOjEctS and SErvIcES acrOSS tHE cOUntry, lEIgHtOn cOntractOrS IS gOIng fUll StEam aHEad tO dElIvEr fOr OUr clIEntS.
pre-strip work will be carried out to establish the Mesa A operation by late 2009. Northern Hume Alliance Between the Sturt Highway and Holbrook in southern NSW, the project is due for completion by the end of December 2009. Dynon Port Rail Link The Dynon Port Rail Link will provide a direct, uninterrupted rail link into the Port of Melbourne. Works on the $116m design and construct project include an elevated section of Footscray Road, over the rail track connection into the port precinct, and an elevated section over Appleton Dock Road and Enterprize Road, integrated with the existing Footscray Road overpass. Dalby Bio Refinery The $110m Dalby Bio-refinery project will use a unique process to generate ethanol using a plentiful local supply of sorghum grain as source material. Australias first sorghum to ethanol facility, the project is due to be completed in December 2008. ONE30 Stirling Street Broad Construction Services WA, was recently awarded a four star Green Star Office Design Version Two performance rating. The modern A grade office building incorporates four floors of commercial space, three ground floor retain tenancies and car parking for 500 cars over four levels. ONE30 Stirling Street is only the fifth office building in WA to reach the Green Star milestone, the first for Broad WA and the second for Broad nationally.
QUEENSLAND

Clem Jones Tunnel

Kingsgrove to Revesby Quadruplication Upgrading rail lines between Kingsgrove and Revesby stations, this package of urban rail works will involve the construction of two addtional tracks between the two stations, upgrades to rail bridges along the line, installation of new overhead wiring and a new overhead concourse and lift at Revesby Station. Mesa A This $344m project provides mine development services at Rio Tintos Mesa A iron ore operation, located 50km from Pannawonica in WAs Pilbara region. Led by HWE Mining, the project utilises the multi-disciplinary expertise of Leighton Contractors resources, construction and industrial divisions. The contract provides for design and construction of the ore handling and train loading plant, as well as associated mine infrastructure. In addition,

Area C Managing the total contract mining operations and other related services, HWE Mining has recently been awarded significant contract extensions and is working to achieve major goals for owner, BHP Billiton, that include expansion of production targets to over 42m tonnes of iron ore per annum. Visionstream Delivering nationally based telecommunications construction, maintenance and engineering services to Carriers, Government, Channel Partners and Enterprise industry segments across Australia and New Zealand territories. Visionstream differentiates itself through its ability to deliver complex network solutions in challenging environments.

Northern Access Road, QLD

One One One Eagle Street This $330m plus design and construction contract will deliver The GPT Group landmark One One One Eagle Street development. The impressive high-rise building, located in the heart of the Brisbane CBDs Golden Triangle precinct, involves the design and construction of approximately 62,000m2 of office space over 44 levels, 100 car parking spaces over six basement levels, ground floor retail space and a business centre. The multi-story building design will achieve a Premium Grade Rating through the Property Council of Australia and will target a Six Star, Green Star Rating through the Green Building Council of Australia.
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This free flow toll project is a critical piece of Brisbanes infrastructure, comprising 6.8km of roadway (including 4.8km of dual, twin lane tunnel), and associated works. When complete, it will be Australias longest road tunnel.
Dynon Port Rail Link, VIC
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Northern Hume Alliance, NSW

PrOjEct OvErvIEw

More than big projects...

cOrPOratE dIrEctOry
Corporate Office
Level 8, Tower 1 495 Victoria Avenue Chatswood NSW 2067 Telephone +61 2 8668 6000 Facsimile +61 2 8668 66

Resources
Leighton mining Level 4, South Tower 339 Coronation Drive Milton QLD 4064 Telephone +61 7 3215 4100 Facsimile +61 7 3215 4199 hwe mining 55 Broadway Nedlands WA 6009 Telephone +61 8 9389 4777 Facsimile +61 8 9389 969

Infrastructure Investment
Level 8, Tower 1 495 Victoria Avenue Chatswood NSW 2067 Telephone +61 2 8668 6000 Facsimile +61 2 8668 66 Level 5, 52 Phillip Street Sydney NSW 2000 Telephone + 61 2 8668 6674 Facsimile + 61 2 8668 6674 Level 1, 148a Brunswick Street Fortitude Valley QLD 4006 Telephone + 61 7 3845 2684 Facsimile + 61 7 3845 2777 Level 1, 5 Queens Road Melbourne VIC 3004 Telephone + 61 3 9228 7240 Facsimile + 61 3 9228 3000

Construction, Engineering and Infrastructure

d] a d an br [

nsw & act Level 4, Tower A 799 Pacific Highway Chatswood NSW 2067 Telephone +61 2 9414 3333 Facsimile +61 2 9414 3500 northern region Level 3, 143 Coronation Drive Milton QLD 4064 Telephone +61 7 3215 4400 Facsimile +61 7 3215 4480 southern region 5 Queens Road Melbourne VIC 3004 Telephone +61 3 9228 7700 Facsimile +61 3 9228 3000 13 Greenhill Road Wayville SA 5034 Telephone +61 8 8291 5300 Facsimile +61 8 8291 5399

Telecommunications
Visionstream 2 North Drive, Virginia Park 236 East Boundary Road Bentleigh East VIC 3165 Telephone +61 3 9258 5700 Facsimile +61 3 9563 7481 neXtgen networKs Level 6, 333 Collins St Melbourne VIC 3000 Telephone +61 3 8613 3333 Facsimile +61 3 8613 3388 Lse Level 6, 486 Pacific Highway St Leonards NSW 2065 Telephone +61 2 9434 3444 Facsimile +61 2 9434 3499

Industrial and Services


5 Queens Road Melbourne VIC 3004 Telephone +61 3 9228 7700 Facsimile +61 3 9228 3000 Level 8, Tower 1 495 Victoria Avenue Chatswood NSW 2067 Telephone +61 2 8668 6200 Facsimile +61 2 9414 3221 13 Greenhill Road Wayville SA 5034 Telephone +61 8 8238 5000 Facsimile +61 8 8238 5001 Level 3, 50 McDougall Street Milton QLD 4064 Telephone +61 7 3510 9200 Facsimile +61 7 3367 2318

Were big on our people. (All 9,000 in fact).


Were proud of what we deliver but nothing matters more to us than our people. Leighton Contractors. More than youd imagine. www.leightoncontractors.com.au

Level 13, 29 Albert Street Auckland NEW ZEALAND Telephone +64 9362 1800 Facsimile +64 9362 1899 western region Level 2, 18-32 Parliament Place West Perth WA 6005 Telephone +61 8 9324 1166 Facsimile +61 8 9481 2449

Broad Construction Services


Level 1, 18-32 Parliament Place West Perth WA 6005 Telephone +61 8 9228 7777 Facsimile +61 8 9228 7700

www.leightoncontractors.com.au
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Leighton Contractors Pty Ltd Level 8, Tower 1, 495 Victoria Avenue, Chatswood NSW 2067 T. +61 2 8668 6000 F. +61 2 8668 6666