project control professional - acoste · ryan laflin is interviewed by nigel hibberd 12 cover...

The Journal of the Association of Cost Engineers

Project ControlPROFESSIONALProject ControlPROFESSIONAL

May 2017Vol. 55 No 3

� The White Tree tower, Montpellier� Semantics in total cost management

� Work while learning with an apprenticeship� Project controls – continuous improvement

� Cost Engineering Tube Map – pull-out

� The White Tree tower, Montpellier� Semantics in total cost management

� Work while learning with an apprenticeship� Project controls – continuous improvement

� Cost Engineering Tube Map – pull-out

Project Control Professional May 2017 3

contents

Volume 55 No 3May 2017

ISSN: 1750-371X

Project Control Professional is publishedby The Association of Cost Engineers

EditorClive WellingsTel: 01691 829421Email: [email protected]

Assistant EditorVanessa TattersallThe Association of Cost EngineersLea House 5 Middlewich RoadSandbach CW11 1XL

Open: 9.00–4.00 Mon–Fri

Tel: 01270 764798Fax: 01270 766180Email: [email protected]: www.acoste.org.uk

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Circulated to all members of the ACostENon-member subscription: £50 (UK)£60 overseas (airmail) Back numbers: £6 each

© The Association of Cost EngineersAll rights reserved

While every effort is made to ensure the accuracy and reliability of the material published in Project Control Professional, neither the Association, nor their agents can accept any responsibility for the veracity of claims made by contributors, manufacturers oradvertisers

Printed in the UK by Buxton Press LimitedPalace RoadBuxtonDerbyshireSK17 6AE

4 President’s message

4 News & events

6 Project controls – continuous improvement (Part 2)by Christiaan des Bouvrie

8 Work while learning with an apprenticeshipRyan Laflin is interviewed by Nigel Hibberd

12 Cover story: The White Tree takes shapeThe White Tree tower is shortly due for completion

13 Book review: The Magnetic Leader

13 Cost Engineering Tube Mapby Dale Shermon

16 Technical paper: Semantics in total cost managementPaper by Gianluca di Castri, presented at the 2016 ICEC Conference in Rio de Janeiro

23 Your route to professional status via ACostE

24 Technical abstracts

25 New members

25 Appointments

26 Diary of events

27 Association Council

27 ICEC news

Front coverThe White Tree, an extraordinary mixed-use tower

in Montpellier, is shortly due for completion. See story on page 12.

Image: www.designrulz.com

4 Project Control Professional May 2017

Dear Colleagues,

In this Spring edition of the journalwe are happy to confirm that thetrials of our chosen system for thecapture and monitoring ofContinuous Professional Development(CPD) are coming to an end, and wewill soon be making the systemavailable to the membership. We arealso pleased to confirm our supportfor the Thought Leadership in CostEngineering conference marking 20years of cost engineering at Cranfield

President’smessage

on 5 July, and encourage our membersto attend.

In this edition we have included atechnical paper that was presented atthe International Cost EngineeringConference in Brazil last October. Thepaper focuses on the definitions of costengineering and project controlsterminology, and how the translation ofthese terms between languages canresult in a different understanding ofthe fundamental principles of ourprofession. It is interesting to note thatthe author bases the difference that wein the UK perceive between costengineering and project managementon the difference between common lawand civil law. Within our community wetend to differentiate between the twobased on depth of knowledge, withproject managers having a broadoverview and the project controlsdisciplines of cost engineering,

news & events

Left to right: Geoff Loader, Thames Water, speaker; Stephen Allen, ACostE SouthernRegion Chairman

Talk on Thames Tideway TunnelThe Southern Region held a technical

meeting at the Royal Over-Seas League

in London on Wednesday 22 March.

The topic of the presentation was ‘The

Thames Tideway Tunnel Project’,

which was given by Geoff Loader,

Head of Stakeholder Engagement for

Thames Water. The slide and video

presentation highlighted the history of

London's current sewerage network

and how the £4.2 billion project will

clean up the Thames, deliver wider

benefits to the community and leave a

lasting legacy for London.

Every year, tens of millions of tonnes

of raw sewage discharge into the tidal

River Thames from London's Victorian

sewers. The 25 km-long interception,

storage and transfer tunnel under the

Thames will collect sewage from the 34

most polluting discharge points along

the river. The Thames Tideway Tunnel

is the largest privately financed infra-

structure project in Europe.

This excellent talk was well attended

by members and guests, despite some

travel disruptions resulting from the

attack on Westminster that afternoon.

estimating , planning, scheduling,commercial and risk managementproviding the specialist expertiseneeded for budget and control.

Finally – and most importantly – acall for help. The Council and Boardare all voluntary positions. We are alearned society representing an eliteprofession – but can only continue todo so if we have sufficient volunteersto man the committees and undertakework on our behalf. We have anumber of vacancies – includingpositions on the EngineeringCommittee – positions vital inmaintaining our Engineering CouncilAffiliation. Please contact the office ifyou have some spare time and arelooking for a new challenge.

Regards,Angela PammenterPresident ACostE

The University of Warwick, and in

particular its School of Engineering, is

part of a new government-funded

partnership of UK Russell Group uni-

versities with the top nine engineering

institutions in China.

The partnership, set up following a

prestigious award funded by the

Department of Business, Energy &

Industrial Strategy (and supported by

the British Council) to build major

collaborations around research and

education, is aimed at building higher

education links and helping to improve

the quality of engineering research and

teaching in China.

The new consortium is the first of its

kind to partner leading UK universities

with the top nine engineering research

UK and China in engineering research partnership


news & events

institutions in China. Alongside the

University of Warwick the consortium

includes: Queen’s University Belfast

(which is leading the initiative),

Birmingham, Cardiff University,

Nottingham and University College

London, The group represents one

quarter of the Russell Group of

research-intensive universities in the

UK, with world-leading research and

education excellence in engineering.

During a delegation to Shanghai by

Jo Johnson, MP, in September, the

Department of Business, Energy &

Industrial Strategy agreed to award the

initiative £200,000. The UK group of

universities met formally in the middle

of March and had the first face-to-face

meeting with the Chinese University

Partners on 25 March to discuss the

partnership, during a special workshop

in Beijing.

The funding will see the successful

universities working closely with the

top ten engineering institutions in

China, which will enable the UK

universities to create a critical mass on

a cluster of key engineering areas, such

as energy and advanced manufacturing,

and will help maintain the UK’s global

standing in light of increasing inter-

national competition. It will also allow

Professor Jihong Wang

China to make the transition from a big

manufacturer to a manufacturing in-

dustry superpower.

Professor Jihong Wang (Professor

of Electrical Power & Control Engin-

eering in the University of Warwick’s

School of Engineering) said: ‘The

world is facing global engineering

challenges, not just in my own area of

power generation, control and stor-

age, but across a range of tech-

nologies. We need partnerships such

as these that pull together the best

minds in the UK and Chinese engin-

eering research to take on those

challenges and to make a real, pos-

itive, difference to our daily lives.’

The partners in China include: South-

east University, Beijing Institute of

Technology, Chongqing University,

Dalian University of Technology,

Harbin Institute of Technology, North-

western Polytechnical University,

South China University of Technology,

Tianjin University and Tongji Uni-

versity.


Project controls – continuous improvement (Part 3)by Christiaan des Bouvrie*

In the two previous articles, I wrote

about the continuous improvement

cycle of project controls – esti-

mating, planning and executing

projects through a holistic approach.

Integrating these disciplines through

inter-departmental communication and

collaboration and maintaining the link

between the different deliverables, will

ensure quality of control over the

project. However, to complete the cycle

of continuous improvement, learning

through feedback is essential. In this

article we will discuss the concept of

project analysis and benchmarking, and

how they add value to your projects and

organization.

Missing linkKey to successful evaluation of a

project is the ability to compare the

actual result with the estimate with

which you started as well as historical

information. The former thus requires a

link to be set up and maintained bet-

ween cost estimating and project

controls. Often this can be facilitated

by a software system that can auto-

matically keep track of all related cost

items through a breakdown structure of

choice. Such structures include defi-

nitions of all breakdown keys and

support a project controller in finding,

sorting, compiling, summarizing and

managing all project information.

Another key advantage of breakdown

structures is that it can enforce stan-

dardization in projects throughout the

organization. Besides leading to

improved decision making, reducing

ambiguity and more accurate analysis

of the project portfolio, it can serve as a

basis for building a historical cost data-

base for benchmarking purposes. This

database is essential in order to im-

prove future estimates, which can be

regarded as the second missing link.

MetricsMetrics and ratios provide a powerful

way of measuring the performance and

health of your project, enabling object-

ive benchmarking. Metrics can be

categorized according to seven criteria:

safety, time, cost, resources, scope,

quality, and actions. Examples of

metrics are the average waiting time,

number of defects per thousand of

produced items or more generic ones

like SPI and CPI. A wide range of

metrics could be defined for every

project, depending on its nature and

circumstances. The basic process to

follow for each of these metrics is to

first establish critical processes and

requirements. Which aspects of the

project are key to its success? Next, you

need to identify specific, quantifiable

outputs of work which can be

objectively measured and compared.

Finally, establishing targets either based

on historic projects or project specific

goals, results in the ability to assess how

(part of) a project is performing.

Metrics should encourage improve-

ment, effectiveness and appropriate

levels of project control, and help you

to spot possible risks and productivity

losses before they happen. Compare

metrics against an expected baseline

that is either according to the planned

progress or the industry standard. This

benchmarking can be done on a project

level, but also on a larger scale to

determine how and why your business

is successful. It is a continuous process

in which organizations continually seek

to improve their practices.

Uniformity and normalizationOne of the biggest challenges for

metric benchmarking is the variety of

metric definitions used among com-

panies or divisions. Definitions may

change over time within the same


organization due to changes in leader-

ship and priorities. The most useful

comparisons can be made when metric

definitions are shared between business

units and remain unchanged so

improvements can be verified.

In order to calibrate and benchmark

project data it is advised to set up a

benchmarking tool, to have a project

history and benchmarking solution that

fits your needs. Benchmarking can be

executed by comparing the different

ratios and characteristic values after the

project. To be able to compare projects,

it is critical to adjust for scope changes,

locations, market conditions and timing.

This process is called normalization and

includes indexation and escalation of

historic project costs, enabling you to

compare apples to apples. Using this

method for your entire cost database

with regular intervals rather than on an

ad-hoc basis, ensures quality and re-

duces the risk of errors.

PortfolioOnce the basis for benchmarking, such

as breakdown structures and project

metrics, has been set up, it can not only

be applied to individual projects but to

an organization’s project portfolio as

well. It may provide insight into the

overall performance of the organ-

ization, but may also uncover trends

like projects that underperform in a

certain regional area, or specific types

of projects that are doing relatively

well. This could then be a starting point

for further investigation, for example

whether future projects in that specific

region should be estimated or executed

differently. Consistency in project

reporting and measurement leads to

better insights, improved decision

making and the ability to capture

lessons learned, which are needed for a

state of continuous improvement.

Cost estimating relationshipsAnother example of using metrics for

the purpose of benchmarking and con-

tinuous improvement is so-called cost

estimating relationships (CERs). A

CER is a formula in which the cost of

(part of) a project or cost element is

related to parameters of that same

project or cost element. Those para-

meters could be either physical or

functional. An example of a CER is the

relation between length, diameter and

operating pressure of a pipeline and its

costs. These CERs can only be deter-

mined based on historical project data.

Consequently, this data should be

captured in a precise and consistent

manner, where not only costs of the

project are stored, but also the para-

meters that relate to it. As long as a cost

database of an organization is extensive

enough, modern software solutions can

determine cost estimating relationships

through automated regression analysis.

After each executed project, the cost

estimating relationships that were used

can be benchmarked using the actual

costs and adjusted where needed,

resulting in continuously improving the

available cost data.

OrganizationAlthough already mentioned, I’d like to

stress the importance of the proper

organization of the project controls

cycle. Without clear knowledge, pro-

cesses and procedures for all those

involved, the intention might be there

but the realization may not. Especially

since many roles from various depart-

ments are taking part in a project,

information might easily get lost or

misinterpreted. What’s more, it’s no

exception when at the end of a project,

the team quickly moves to the next,

without taking time for a proper close-

out, capturing lessons learned and

storing all information that might be

relevant in the future. This should be

avoided by using clear procedures at all

levels of the organization.

ConclusionIn the three articles I’ve written for this

journal, of which the first was publish-

ed in the February edition, I empha-

sized the importance of improving the

quality of project controls. Major cost

and schedule overruns within large

capital projects are rule rather than

exception. There may be many causes

for this phenomenon, from lack of

engineering insight to poor manage-

ment decisions. However, the common

denominator is that project controls is

too often an activity independent from

other project phases. In an analogy with

the well-known plan-do-check-act

(PDCA) cycle, I advocate an approach

that integrates estimating, planning,

control and analysis, executed based on

facts rather than gut feeling. Having the

right knowledge, procedures and com-

munication is a good starting point. A

software solution that integrates the

four major disciplines certainly helps in

this regard. It won’t solve all your

issues, but it’s an important step

towards improving your project con-

trols on a continuous basis.

* Christiaan des Bouvrie, CEO,

Cost Engineering Consultancy

Email: [email protected]

Cost Engineering provides consulting

services and software to organizations

worldwide. They support in cost

estimating, cost validation and project

controls activities in a wide variety of

projects. (See advertisement on page 2.)


interview

‘Working while learning with an apprenticeship’Ryan Laflin, who works for Aker Solutions,is in the second year of his Level 3 Apprenticeship inProject Control and gives Nigel Hibberd his views on the programme and what it has done for hiscareer. This interview is part of a series on candidates who have undertaken a Project Controlapprenticeship.

Nigel Hibberd

Thank you, Ryan, for agreeing to do

this interview. The ACostE, with

ECITB, is running a series of articles

on how people who have completed or

are undertaking the Project Control

Apprenticeships feel about having

undertaking the programme. It is felt it

would be good to capture the views of

someone who has recently completed

the programme, so we can raise the

project control profile as a real career

leading to professional status.

What qualifications did you have

when you chose to join the Apprentice-

ship and what other careers did you

consider? What was the main driver for

you selecting the Project Control

Apprenticeship?

Ryan Laflin

I left school with 10 GCSEs A*–C and

then went on to college, where I

achieved two A-Levels and a BTEC

Diploma. I had considered doing a

degree at university but was unsure and

more excited at the prospect of working

while learning with an apprenticeship.

Nigel Hibberd

How long is it since you started your

Level 3 Project Control Apprentice-

ship, and how many QCF units have

you completed to date?

Ryan Laflin

I started my Apprenticeship in Sept-

ember 2014. In the first year I studied

full time at Richmond College towards

achieving a BTEC Level 3 in Engin-

eering. Since September 2015 I have

been working towards the NVQ.

Nigel Hibberd

In the first year what were the main

topics you covered, and what was your

key learning?

Ryan Laflin

In the first year, I gained a general

understanding of a variety of topics in

engineering. This included subjects

such as drawing methods, commercial

aspects of engineering companies and

3D modelling training (CAD), using a

lot of mathematical methods.

Nigel Hibberd

What was the Apprenticeship delivery

pattern in the first year? How much

time in the training school and how

much time at work?

Ryan Laflin

In the first year, I was at college full

time. This prepared me with an under-

standing of what would be expected

when I started work. In addition, I did a

number of training courses, such as

HSE Awareness and Risk Management.

Nigel Hibberd

In the second year, what were the main

topics you covered, and what was your

key learning?

Ryan Laflin

In the second year, topics included

Engineering Science, Fluid Mechanics

and Analytical Methods. These were

generally more focused on the math-

ematical aspects of engineering, in-

cluding the behaviour and character-

istics of fluids in engineering systems.

Nigel Hibberd

What was the Apprenticeship delivery

pattern in the second year? How much

time in the training school and how

much time at work?

Ryan Laflin

The second year was very different from

the first. Four days of the week were

spent in the office working on a project

with the planning team, while just one

day was spent at college. All the college

work was coursework based.

I worked on my QCF at the end of

each week, dedicating some time to

look back on the work I had com-

pleted and how it could help me

complete my QCF.

Nigel Hibberd

In the third and fourth year, what do you

expect the pattern of delivery to be? Will

all your time be in work? How much

time will be spent on your QCF 3?

Ryan Laflin

I expect the delivery pattern to be

similar to the second year, but I think

I will be able to spend more time

working on my QCF, as I will have

gained more experience which will

help me work through more modules

on the QCF.

Nigel Hibberd

What is your current job role and do

you feel undertaking your apprentice-

ship is preparing you adequately?

Ryan Laflin

I am currently working on a project as

part of the Planning Team, where I help

to report the progress of the engineering

team to the client on a bi-weekly basis.

A large part of my work is produced

using Excel and Primavera, as well as

bespoke company software. The App-

renticeship has given me a good found-

ation to get started in my role and I will

hopefully continue to improve my

knowledge and understanding. Overall,

I feel the Apprenticeship is preparing me

well and is putting me on the right track.

Nigel Hibberd

Overall, what learning have you found

most useful in the day job?


interview

Ryan Laflin

I found the practical, on-the-job activ-

ities as my preferred way of learning.

Actually seeing how things are done

and understanding why they are impor-

tant has really helped me learn and

improve my skills.

Nigel Hibberd

Is there anything you feel should be

added to the Apprenticeship to better

prepare you for the day job?

Ryan Laflin

I feel a more project control-driven

lesson at college that involved the use

of project tools, such as Primavera,

would have been useful.

Nigel Hibberd

What aspects surprised you the most

about doing the Level 3 Project Control

Apprenticeship? Have you done any-

thing similar before?

Ryan Laflin

I think the level of involvement in the

company in the second year has been a

great experience. Working on a project

has been insightful and helped me

understand project control far better

than I did before and in the first year.

Nigel Hibberd

It is interesting how much you value

the time in the company. How could the

course have prepared you better?

Ryan Laflin

I think if there was a module or lesson

that involved the use of project control

tools such as Primavera, I would have

been better prepared when I started at

the company.

Nigel Hibberd

The process is fresh in your mind; are

there any aspects you particularly like

and are there any aspects you would

like to see improved in the delivery

process?

Ryan Laflin

I have enjoyed the independent work

and research required in order to

complete the assignments in my first

two years so far. As an improvement, I

would suggest that the QCF assessors

need to visit on a more frequent basis to

enable more support and guidance.

Nigel Hibberd

That is very interesting observation,

Ryan. I take it you were doing Level 2;

how often did you see your assessors

and what do you feel you most valued

from your time with the assessors?

Ryan Laflin

I am doing QCF Level 3 and assessors

come into the workplace four times a

year; providing important general

support and guidance on how to present

evidence for the modules. You can,

however, send work in between visits

via email for review or submit units in

eQual, which is a web-enabled assess-

ment tool for QCF units and quali-

fications.

Nigel Hibberd

How important do you think it is that

the QCF Level 3 diploma is an integral

part of the Apprenticeship?

Ryan Laflin

I think it is very important; it helps

ensure a greater understanding across

all of the project controls departments –

planning, cost, change and risk. The

QCF also helps you to understand what

is expected of you in the workplace –

with an emphasis on the quality of

work that you produce and how well

you work with colleagues and team

members in order to achieve your

shared goals and objectives.

Nigel Hibberd

I am glad you feel that way because I

also feel it is important. Do you feel

there is a need for a higher-level

Ryan in discussion witha colleague at Aker

Solutions


Apprenticeship, say at Level 6, which I

see would be a vehicle to uplift your

Level 3 Apprenticeship to a degree

level by completing the supplementary

work required. Would you see this as a

way forward for your longer-term

development?

Ryan Laflin

Yes, I think it would be a great oppor-

tunity for people who wanted to begin

the Apprenticeship at a higher level

and also one I would consider in the

future.

Nigel Hibberd

It is really good to hear how you feel it

has been a positive experience. Do you

feel others with a similar background to

yourself would benefit from under-

taking the programme?

Ryan Laflin

I would say so. I was unsure of what I

wanted to do when I left college, but

the Apprenticeship provided me with a

chance to develop new skills and

achieve further qualifications while

working towards a professional career.

Nigel Hibberd

What are your aspirations, career-

wise, in the five years following your

App-renticeship, and do you see your-

self staying in project control in the

longer term?

Ryan Laflin

In the five years following the App-

renticeship I hope to continue working

on projects within a planning team. I

can see myself having a long-term

career in project controls.

Nigel Hibberd

Ryan, that is really good to hear you see

it as a good long-term career for you.

What professional aspirations do you

have and do you see becoming profess-

ionally Accredited or Chartered as

being an ultimate goal?

Ryan Laflin

Maybe one day. At the moment, I am

focusing on the next few years to try to

complete my Apprenticeship and then

continue to improve my skills and

knowledge in order to become a

successful planner.

Nigel Hibberd

Ryan, I can understand you need to

focus on completing the Apprentice-

ship first. It was really good to see how

someone who at sixth form was un-

decided which way to go and opted for

the Apprenticeship, feeling it would

suit him better, and this far into the

programme still believe it was right

decision.

Hopefully your comments will moti-

vate others like you ‘to have a go!’

Ryan Laflin

It has been a great experience for me so

far, so I hope others will undertake a

similar path.

Nigel Hibberd

Thank you very much, Ryan, I am so

pleased you have found it such a

quality experience.

PROFILES

Ryan Laflin

22 years old. Ryan left college with two

A Levels and a BTEC Diploma, but was

undecided about attending university. He

joined the Apprenticeship Scheme with

Aker Solutions in September 2014.

Since then he has completed a BTEC

Level 3 in Engineering and is now

working towards an HNC in Mechanical

Engineering, as well as undertaking a

QCF Level 3 in Project Control, as part

of his apprenticeship.

He is currently working as part of the

Planning Team within Aker Solutions for

four days of the week. The other day is

spent at Richmond College as part of the

HNC in Mechanical Engineering.

Nigel Hibberd

Nigel retired from BNG (British Nuclear

Group) 10 years ago, after 30 years in

project control, having held various

project services roles including Head of

the Project Control function for BNFL

Engineering.

He studied Industrial Engineering at

Cranfield, followed by a period in

industrial engineering before moving

into Production and Works Management.

Nigel was Chairman of ProVoc for

around 10 years before he retired, which

was the national steering group for the

national occupational standards.

Since retirement he works part time as a

Project Control QCF Assessor, lectures

on Project Control at a couple of

universities and was Chairman of the

ACostE’s Accreditation Board, which

delivers tiered Accreditation to

Incorporated and Certified Professional

level , for cost engineers, estimators and

planners.

For more information on Accreditation

email [email protected] or

telephone 07803 248 427.

interview

ARTICLES WANTEDIf you have a technical paper, article or opinion piece that you

think may be of interest to our members, please email the Editor,Clive Wellings, via [email protected],

with a précis.

Are you looking to gaina qualification?

Maybe members of your staff or team are?

Have you thought of doing a QCF Qualification (formerly known as NVQ)?

The Assessment Service Centre (TASC), as part of The Association of Cost

Engineers Limited, offers QCF Level 2, 3 and 5 Diplomas in

Cost Engineering, Estimating, Planning and Project Control together with

SCQF Levels 5 and 6 in Cost Engineering, Estimating, Planning and Project

Control, all utilising convenient e-portfolios.

The National Occupational Standards for these qualifications have been

developed by industry for industry.

If you are interested and would like more information then please give

Helen Jackson a call on 01270 763646 or email [email protected].

The Assessment Service Centre, Lea House, 5 Middlewich Road, Sandbach,

Cheshire CW11 1XL



news & events

cover story

The White Tree takes shapeThe White Tree (L’Arbre Blanc), a

56-metre tall residential tower in

Montpellier, France, is shortly

due for completion.

At 17 storeys tall it contains 120

apartments – each with a balcony/shade

deck, a restaurant, an art gallery,

offices, and a rooftop penthouse bar.

The building has been designed by

Japanese architects Sou Fujimoto to

reflect the ideology that architecture

should reflect forms found in nature. As

the name suggests, it is designed to

resemble a tree, with the balconies

protruding from the ‘trunk’ of the

building like tree branches.

Montpellier’s tradition of outdoor

living has also had an influence on the

design approach. An intention of the

design is that residents will have the

impression that they are outside when

they are indoors, by mixing the two

settings. The structure’s balconies are

claimed to draw natural light, absorb-

ing sunshine the same way leaves do.

Built from modular units, the 10,000

square metre, mixed-use building

features many different layouts with

panoramic views of the nearby mount-

ains and the Mediterranean Sea.

Montpellier is the eighth largest city

in France and contains three univer-

sities. It is the third-largest French city

on the Mediterranean coast after

Marseille and Nice. ww

w.D

esig

nR

ulz

.co

m

ISO 44001 launchedBSI has launched ISO 44001:Collaborative business relationshipmanagement systems – requirementsand frameworks. The new international

standard replaces BS 11000, and

provides guidance for identifying,

developing and managing collaborative

relationships with or between organ-

izations.

ISO 44001 addresses the manage-

ment system of an organization, and

provides a framework for how organ-

izations can establish a management

system, as well as the operational

process requirements for specific or

individual organizational relationship

engagement.

The standard also provides guidance

on how effective collaboration requires

two or more organizations to work well

together, with the necessity that a man-

agement system needs to accom-

modate the activities of both parties.

Differing cultures in organizations, and

the challenges this can pose to synergy,

are covered in the standard to ensure

that organizations have the right tem-

plate to deliver enhanced benefit to

stakeholders through collaborative

approaches.

There is continuity with the new ISO

44001 and its predecessor, BS 11000;

the key requirements from BS 11000

have been retained to ensure the focus

on the evolving nature of a relation-

ship’s development. ISO 44001 uses a

high-level structure (HLS) – featuring

terms, definitions, headings and text

common to all management system

standards.


Cost Engineering Tube Mapby Dale Shermon*

Cost engineering has recently hadan increased visibility. With theage of austerity, the costs of

projects, systems and services have comemore into focus. Cost engineers havetechnical background; they are notaccountants. For cost engineers, theirfocus is not watts, newtons, volts, ampsor kilograms, but dollars, euros andpounds.

They have a number of purposes totheir work; cost predictions are not theend in itself. It is always necessary toconsider the answer to the question:‘What is the requirement?’

Potential applications of costengineering include, but not limited to:

� Financial analysis (for example, affordability, budgeting)

� Economic analysis (for example, options analysis)

� Cost benefit analysis (for example, different process or technology)

� Business case analysis (for example,

due diligence of capital expenditure)

� Project management and project control (for example, setting EVM baseline)

� Design and performance trade-off decisions (for example, analysis of alternative)

� Acquisition analysis (for example, technology insertion).

It is not commonly appreciated thatthere are a number of different typesof cost prediction which can bedeployed which are suitable todifferent applications including:

� Rough Order of Magnitude (ROM) cost

� Independent Cost Estimate (ICE)� Whole-life cost (WLC) or Life-Cycle

Cost Estimate (LCCE)� Budgetary cost estimate� Commercially committing proposal

estimate

� Discounted cash flow and Net Present Value (NPV)

� Parametric top–down forecast� Should cost/would cost/could cost� Operating & support cost or

Through-Life Cost (TLC)� Activity-Based Costing (ABC).

To achieve these cost predictions acost engineer needs a host ofcompetencies, as shown in red line onthe Tube Map, shown overleaf.

It takes experience, knowledge andunderstanding to produce an estimatethat is justified and credible. It takesscience, maths and art to communicatean estimate that will withstandscrutiny!

Please email [email protected] your address if you would like afull-size copy of the Cost EngineeringTube Map poster. ➔

* Dale Shermon is a QinetiQ Fellow,Managing Consultant.

The Magnetic LeaderRoberta Matuson* became a directorat the heady age of 24, an experiencethat, years later, inspired her topublically apologize to her formeremployees. Since then she’s made ither mission to ensure that no one willbe the kind of boss she once was. TheMagnetic Leader is the latest step inher quest to help management stoprepelling talent.

In her new book she challengesmanagers to be the kind of leadersthey wish they had. Matuson knowsfirst hand that, while most leadersthink they are magnetic, theiremployees disagree.

So, what makes for a magneticleader? Matuson says it comes down toseven traits: authenticity, selflessness,strong communication, charisma,transparency, vision, and resilience.Magnetic leaders challenge the statusquo, try to improve themselves everyday, keep their energy levels high,charge up their followers, and aren’tafraid to fail.

Through The Magnetic Leader

Matuson aids readers in transformingtheir leadership style from push to pull,repel to attract, dismal to good, andthen good to great. The book offersstraightforward tips and insights ontopics, including how to assess yourcurrent leaders, why employeeengagement programmes don’t work,and tips on thoughtful terminations.With this book, Matuson asks us toconsider that the quality of acompany’s leadership is the mostimportant factor in attracting andretaining high-quality employees.

‘Roberta Matuson has good news:

you don’t have to be born withpersonal magnetism to be a greatleader. With her guidance, you canlearn to be irresistibly, magneticallyattractive to the people you lead – andachieve more than you ever thoughtyou could.’ – Marshall Goldsmith, NewYork Times-bestselling author

‘This book will attract those leaderswho see people as assets and repelthose who see them as expenses.’ –Alan Weiss, author of ‘Million DollarMaverick’

The Magnetic Leader (Routledge, 2017,178pp, hardback, £18.99, ISBN:9781629561653)

* Roberta Chinsky Matuson, President ofMatuson Consulting, has helped leadersin Fortune 500 companies, includingGeneral Motors, New Balance, TheBoston Beer Company, and small tomedium-sized businesses achievedramatic growth and market leadershipthrough the maximization of talent. Sheis the person that top employment siteMonster and global retail giant Staplesturn to for advice on talent. One of herprevious books, Suddenly in Charge, wasa Washington Post Top 5 Business Bookfor Leaders.

book review

Project Control Professional May 2017 15© QinetiQ 2017


technical paper

Semantics in total cost managementby Ing. Gianluca di Castri1, DIF, EIE/ICEC.A


technical paper


technical paper

.


technical paper


Your route to professional status via ACostE

technical paper

This paper was presented at the 10th ICEC World Conference held in Rio de Janeiro in 2016. It is reproduced here by kindpermission of the International Cost Engineering Council © ICEC 2016


Technical abstractsTechnical abstracts – briefparticulars of the contents

of journals received byACostE and available

for loan from the Sandbach office

CIVIL ENGINEERING SURVEYORPublished by the Chartered Institution

of Civil Engineering Surveyors

February 2017

Main articles include:

Finite resource, growing demand:

How Asia manages its water supply –

Alan Man, Managing Director for

Water in Greater China; and William

Yong, Managing Director for Water in

Southeast Asia, Black & Veatch –

How Asia’s water industry is tackling

growing demand – Modern Asian

cities are feeling the pressure of

growing populations, improved

economies and a rising middle class.

These factors are impacting their water

supply and water infrastructure.

Retention loved by some, loathed by

others – Do such funds work? –

Andrew Leisk, FCInstCES, FCIOB,

MRICS – The divisive issue of

retention in construction – Retention is

a divisive issue in the construction

industry and is the most commonly

used performance security but,

unfortunately, its use is not effective

with regard to its stated function.

March 2017

What does chartered status mean to

you? – Andrew Leisk, FCInstCES,

FCIOB, MRICS, on the very personal

achievement of chartered status.

Seeking chartered status is very much

a case of saying good things about

oneself.

Asbestos in soil and the role of

effective air monitoring and analysis –

Dave Cooper, Commercial Director,

Lucion – Using air monitoring and

analysis to reduce asbestos exposure

risks – Historical waste management

and demolition practice has resulted in

asbestos-containing materials (ACM)

being potentially present in soil or

made ground at any brownfield site.

ENGINEERING & TECHNOLOGYPublished by The Institution of

Engineering & Technology

Vol. 12, Issue 1, February 2017

The euro was launched 15 years ago

as one of the building blocks of a

federated Europe. It holds the union

together and the currency markets see

no danger of it collapsing – by Clem

Chambers.

Rise of the Icebreaker – As the

geopolitics of the Arctic become ever

frostier, the icebreaker is proving a

key asset – and an inspiration in

technology design – by Felicity Aston.

The Eccentric Engineer – by Justin

Pollard – Earning a crust: the inventor

of the seismoscope. It was the

mathematical genius of a brilliant

engineer in first-century China that led

to the creation of the first earthquake

detector – and his reward? – payment

in bread.

Vol. 12, Issue 2, March 2017

Driverless cars: when and where? – It

is likely to be a long time before

drivers are redundant, but cars are

taking on more and more tasks under

computer control – by Lawrie Jones.

Wireless communications will guide

cars through congestion – Every road

tells a story – by Chris Edwards.

THE CHEMICAL ENGINEERPublished by the Institute of Chemical

Engineers

Issue 908 – February 2017

Dawn of a new era – How Sellafield is

introducing a new clean-up stage to its

operations – Lisa Maxwell, ILW

Strategic Authority, Remediation,

Sellafield Ltd. The only certainty in

the future of the UK nuclear industry

is change. There is a resurgence in

nuclear power with the path forward

paved for a fleet of new nuclear

reactors.

Out of retirement … or how to keep

busy in your 70s – Trevor Hobday,

FIChemE, Steam Locomotive

Department, Gloucestershire/

Warwickshire Railway.

Issue 909 – March 2017

Walking the walk – Industry leaders

must be the catalyst for the

equilibrium shift towards a diverse and

inclusive profession – by Marlene

Kanga, Non-Executive Director,

Sydney Water Corporation; President

Elect, World Federation of

Engineering Organisations – The

importance of increasing the

participation of women in the

workforce, especially in science and

engineering sectors, has been

recognised around the world as being

essential for economic growth, for

innovation, developing new industries,

and for the knowledge economy.

IChemE launches The Silver Book –

New Form of Contract covers

professional services agreements.

IChemE has launched a completely

new model form of contract book,

Professional Services Contract – the

Silver Book, which covers profession-

al services agreements and is suitable

for both UK and international use.

ARTICLES WANTEDIf you have a technical paper, article or opinion piece that you think may be of interest

to our members, please email the Editor, Clive Wellings, via [email protected] with a précis


The Association extends a warm welcome to the following members, whohave recently been elected by the Membership Admissions Committeenew members

IAIN MALCOLM TAYLOR – 6688 –MemberConsultant Estimator – Transport forLondon, Power & Cooling Upgrades,London

MICHAEL JAMES RICHARDSON – 6689– AssociateCost Engineer – DE&S/CAAS, Bristol

MAN FUNG LO – 6690 – MemberLecturer – Hong Kong PolytechnicUniversity, Kowloon, Hong Kong

SAMANTHA-JAYNE MCKAY – 6691 –GraduateProject Cost Analyst – NSGEnvironmental Ltd, Lancashire

KENNETH JOHN RANDLE – 6692 –MemberSenior Cost Engineer – Cost Assurance& Analysis Service (CAAS), Somerset

MOHAMED RMADAN – 6693 –MemberProject Controls Coordinator – ENI IraqBV, Dubai, UAE

KIERAN MICHAEL HODGSON – 6694 –Student

KEVIN WADE – 6695 – AssociateCost Forecaster – Cost Assurance &Analysis Service (CAAS), Bristol

CHAN KWOK LEUNG – 6696 – MemberProject Manager – Techoy ConstructionCompany Limited, Hong Kong

STEPHANIE ANNE ILLINGWORTH – 6697– MemberProject Controls Manager – CavendishNuclear Limited, Manchester

SURENDRANATH RAM – 6698 –MemberCommercial Manager – Qatari DiarProjects Managements, Tunisia

MUNTASIR ELRASHID MOHAMEDYOUSIF – 6699 – MemberConstruction Manager – AG MiddleEast LLC, Doha, Qatar

MICHAEL MUDIAGA OBATA – 6700 –AssociateSenior Corporate Management

Consultant – Regal Diadem Limited

APRIL MEI CHEE HWANG – 6701 –GraduateTrainee Cost Engineer – JBPU (B) SDNBHD, Brunei

SABIN KUNCHERIA PURACKAL – 6702 –GraduateGraduate Trainee Engineer – Ministry ofDefence, Bristol

STEPHEN WILLIAM BAKER – 6703 –MemberSenior Cost Engineer (Head ofProfession) – Ministry of Defence, Bristol

UPGRADEDANDREW PETER CHILLINGSWORTH –5634 – FellowHead of Planning & Training – AtkinsTransportation, London

MOHAMED HUMDHAN NAHUMANBATCHA – 5790 – FellowCountry Head for Project & ProgramManagement Services –Arcadis/Utamacon (B) SDN BHD, Brunei,Darussalam

Senior UK appointmentat G&P quality expertQuality management expert G&P hassignificantly strengthened its UK seniormanagement team with the appointmentof experienced aerospace industry exec-utive, David Whiffin, in the role of UKgeneral manager.

In the position, David will lead G&P’sUK business, with a particular emphasison strengthening the company’s currentclient relationships and transferring itsextensive automotive industry experienceinto the aerospace and other relatedsectors. The move will then allow manymore high-value manufacturing com-panies across a wide range of sectors toexperience improvements in their qualitymanagement, resulting in the numerousbenefits of lean production, waste reduc-tion and eradication of non-conformities,utilising the award winning QualityExcellence Model.

‘I’m incredibly excited to be taking onthis role and helping G&P continue to

move forward,’ comments David Whiffin,UK general manager, G&P. ‘The companyhas achieved substantial growth andsuccess in recent years and I will belooking to extend this through the com-bination of my own aerospace industryexperience and G&P’s established globalposition in both the automotive andaerospace sectors.’

As a qualified engineer, David has con-siderable experience in the aerospaceindustry in military, civil and commercialenvironments. He started his career as ahelicopter engineering apprentice in thearmy before working for some majorairlines and maintenance, repair andoverhaul (MRO) organizations across awide range of aircraft types. David alsoworked for a major helicopter manu-facturer, reducing the operating costs foran MoD aircraft programme as well asleading programme delivery for manu-facture and delivery of several AirbusA380 components. Most recently Davidestablished Altran, an aerospace manu-facturing consultancy business for a globalengineering consultancy, taking the

business to a turnover of £5m within itsfirst two years.

Speaking on the appointment, ArneWillerslev-Legrand, group managingdirector, G&P, said: ‘We are delighted towelcome David in this strategically signi-ficant move for us. G&P has alreadyestablished a good working relationshipwith many high-value manufacturers andtheir component suppliers across a grow-ing range of industry sectors. WithDavid’s appointment, we intend to helpeven more improve their quality issues,reduce their levels of waste and benefitfrom similar lean manufacturing processesthat are widely and successful adoptedacross other sectors. In addition to em-bracing David’s industry experience toimprove our client’s performance, Davidwill utilise our award-winning, innovativeQuality Excellence Model, targeting theroot cause of manufacturing problems anderadicate them at source, significantlyenhancing our customers’ overall environ-mental performance.’

David Whiffin will be based at G&P’sglobal HQ at Fort Dunlop, Birmingham.

appointments

diary of eventsProject Controls ExpoThursday 16th – all dayEmirates Arsenal Stadium, London

FEBRUARY Association of Cost EngineersThursday 1st – 2.00 pmCouncil Meeting

MAYInternational Federation of Surveyors (FIG)Sunday 6th to Thursday 10thFIG Congress 2018, Istanbul, Turkey

JUNE AACE InternationalSunday 24th to Wednesday 27th62nd Annual Meeting, Manchester Grand Hyatt, San Diego,California, USA

NOVEMBERICEC/PAQS/Australian Institute ofQuantity Surveyors (AIQS)Wednesday 14th to Friday 16th11th ICEC World Congress (25thInternational Cost EngineeringCongress)/22nd PAQS AnnualMeetingInternational Convention Centre,Sydney, Australia

International Federation ofSurveyors (FIG)FIG Working Week 2019, Vietnam

JUNEAACE InternationalSunday 16th to Wednesday 19th63rd Annual MeetingSheraton Centre, New Orleans,Louisiana, USA

ICEC/AAQS/Ghana Institute ofSurveyors (GhIS)12th ICEC World Congress (26th International Cost EngineeringCongress), Accra, Ghana

MAYACostE Southern RegionTiuesday 16th – 6.15 pmTechnical Meeting – Talk onHeathrow Airport Expansion byMike BallRoyal Over-Seas League, London

International Federation ofSurveyors (FIG)Monday 29th May to Friday 2nd JuneFIG Working Week 2017Helsinki, Finland

JUNEAssociation of Cost EngineersThursday 1st – 2.00 pmCouncil MeetingOffices of Mott MacDonald, 10 Fleet Place, London EC4M 7RB

AACE InternationalSunday 11th to Wednesday 14th61st Annual MeetingHyatt Regency, Orlando, Florida, USA

JULYCranfield UniversityWednesday 5thCost Engineering – a thoughtleadership conferenceVincent Building, College Road,Cranfield

Pacific Association of QuantitySurveyors (PAQS)/CanadianAssociation of Quantity Surveyors(CIQS)Friday 21st to Tuesday 25th 21st Annual PAQS Congress – ‘Green Developments; The New Era’Vancouver, BC, Canada

ACostE Southern RegionEvening Walking Tour in LondonDetails to be confirmed

SEPTEMBERAssociation of Cost EngineersThursday 7th – 2.00 pmCouncil MeetingOffices of Mott MacDonald, 10 Fleet Place, London EC4M 7RB

NOVEMBERAssociation of Cost EngineersThursday 2nd – 2.00 pmCouncil MeetingOffices of Mott MacDonald, 10 Fleet Place, London EC4M 7RB

2017Reminder re use of ACostE designation

Members who resign fromthe Association or whose

membership has lapsed or hasbeen withdrawn because of

non-payment of subscriptionsare not entitled to continue

to use membershipdesignations after their nameor in any other manner which

could suggest that they arestill a member of the

Association. MembershipCertificates should be

returned to our Sandbachoffice if membership of the

Association ceases, forwhatever reason.

Retired membership rateAssociation Members are

reminded that the Byelaws 18& 19 detail the criteria for a

Retired Member. Anyone whois in receipt of payments from

an employer or who is self-employed shall not be entitled

to the reduced membershiprate.

2020

2018

2019


ARTICLES WANTEDIf you have a technical paper,

article or opinion piece that you

think may be of interest to our

members, please email the Editor,

Clive Wellings, via

[email protected]

with a précis


Association Council DIRECTORSA. Pammenter – PresidentA.J. Barltrop – Immediate Past PresidentA. Ray – Vice-President, International Chairman

N. Hibberd – Vice-PresidentR. Carter – Treasurer, The Assessment ServiceCentre Contracts and Finance

V. Thompson – Admissions ChairmanJ. Ward – Company Secretary, The Assessment Service Centre Operations

R.B. Watson – Engineering Services Chairman, The Assessment Service CentreChairman

Alan Jones – Accreditation ChairmanS. ForthRichard RobinsonJ. Studman

HONORARY VICE PRESIDENTR. Roy

CO-OPTED MEMBERSS.J. Allen – Southern Region ChairmanR.M. Batten – Engineering ChairmanP. Clewes – South West Regional Chairman

For your current information the Councilare actively engaged in the following forthe Association:

Administration, Finance, Admissions,Regions, Cost Engineering, Planning,Engineering Registration, IT and Website,Certification, Engineering Manufacture,Legal and Commercial, Liaison withexternal bodies, Publications, CommercialContract, Benchmarking, Life-Cycle Costing, Risk & OpportunityManagement, Bibliography, ICEC, QCFs,Cost Control/Management, Building forthe Future, Fellowship.

If you, as a Member of the Association,wish to contribute or liaise with a CouncilMember on any of the above subjects,please do so initially through our headoffice staff, who will provide you with thenecessary contact.

J. Dyson – Engineering Manufacturing Chairman

A. Godhawale – StrategyF. HoughtonA. Jones – Accreditation & Certification Chairman

A. LangridgeD. Langton – The Assessment Service CentreD. ReussE. Shehab – Company Membership Chairman

D. Shermon – SCAF RepresentativeP. Snowden – BAE Company RepresentativeS. Tammineni – Rolls-Royce Company Representative

ELECTED MEMBERSD. MillichampR. RobinsonP. ThompsonR. Whiting

HEAD OFFICE STAFFMrs V. Tattersall – ACostE/TASC AdministratorMrs H. Jackson – ACostE/TASC Finance

As well as all the discussions being

held on infrastructure renewal and

resilience which, in the UK, include

Heathrow, High Speed 2 and Hinkley,

there is also the pressing matter of global

warming. However, the real elephant in

the room is population growth. For

thousands of years population grew only

slowly, but in recent years it has jumped

dramatically. Between 1900 and 2000 the

increase in world population was three

times greater than in the entire previous

history of humanity, an increase from 1.5

billion to 6.1 billion in just 100 years. The

UN calculates that there are now more

than 7 billion living humans on Earth,

6.5% of all people ever born, yet less than

200 years ago we numbered a mere 1

billion. Admittedly, the world population

growth peaked in 1962, at around 2.1%,

and has come down to around half since

then, but we are still likely to number

over 11 billion by 2100. The real

challenge is not only in infrastructure

renewal and resilience but in providing

all the new infrastructure to support this

increase in population, as well as solving

the problem of global warming – quite a

legacy to leave to the next generation.

ICEC, as a global non-political and non-

profit confederation of professional

institutions in the fields of cost engineer-

ing, quantity surveying, project controls,

and project management, has an

important role in meeting this challenge

through:

• promotion of worldwide standards for

professional competencies, educational

programmes, and accreditation of edu-

cational programmes and degrees;

• active participation in professional

coalitions, such as the ICMS (Inter-

national Construction Measurement

Standards) effort;

• cooperation with similar institutions,

universities, and agencies in the

development of standards and research;

• cooperative agreements with other

institutions such as RICS, FIG, PAQS,

AAQS and IPMA.

ICEC encourages the conduct and

promotion of regional and worldwide

congresses, meetings, forums and

seminars.

The International Federation of

Surveyors (FIG) 2017 Working Week

will be held in Helsinki, Finland, from

Sunday 29 May to Thursday 2 June. The

overall theme is ‘Surveying the world of

tomorrow – from digitalization to

augmented reality’. This theme has been

chosen to highlight the opportunities and

open a view into the future where the

information we produce is, again, put into

a more efficient use.

AACE International are holding their

61st Annual Meeting at the Hyatt

Regency Hotel in Orlando, Florida, from

Sunday 11 to Wednesday 14 June 2017.

The 21st Pacific Association of

Quantity Surveyors (PAQS) Annual

Congress, entitled ‘Green Developments,

The New Era’, will be hosted by the

Canadian Association of Quantity

Surveyors (CIQS) in Vancouver, BG

Vancouver, from Friday 21 to Tuesday 25

July 2017. A meeting of the International

Cost Measurement Standards (ICMS)

Coalition will be held at this Congress.

The 2018 11th ICEC World Congress

(the 25th International Cost Engineering

Congress) will be hosted by the

Australian Institute of Quantity

Surveyors (AIQS) at the International

Convention Centre in Sydney, Australia,

from Wednesday 14 to Friday 16

November 2018.

The 2020 12th ICEC World Congress

(the 25th International Cost Engineering

Congress) will be hosted by the Ghana

Institution of Surveyors Quantity

Surveyors Division (GhIS).

Minutes of past meetings and details of

future meetings, as well as ICEC’s

International Roundup News, are all

available on the ICEC website at

www.ICostE.org.

ICEC news

Roger Batten, MBE,ICEC spokesman for the Association

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