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The Journal of the Association of Cost Engineers Project Control PROFESSIONAL Project Control PROFESSIONAL November 2017 Vol. 55 No 6 ACostE Annual Report 2016–17 ‘mycareerpath’ – the ultimate online CPD tool Prolongation cost claims – the basic principles Award-winning mountain village development ACostE Annual Report 2016–17 ‘mycareerpath’ – the ultimate online CPD tool Prolongation cost claims – the basic principles Award-winning mountain village development

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Page 1: PROFESSIONALProject Control November 2017Front cover Huangshan Mountain Village in China has won an AZ Award of Merit (Residential Architecture Multi-Unit category) in AZURE magazine’s

The Journal of the Association of Cost Engineers

Project ControlPROFESSIONALProject ControlPROFESSIONAL

November 2017Vol. 55 No 6

� ACostE Annual Report 2016–17

� ‘mycareerpath’ – the ultimate online CPD tool

� Prolongation cost claims – the basic principles

� Award-winning mountain village development

� ACostE Annual Report 2016–17

� ‘mycareerpath’ – the ultimate online CPD tool

� Prolongation cost claims – the basic principles

� Award-winning mountain village development

Page 2: PROFESSIONALProject Control November 2017Front cover Huangshan Mountain Village in China has won an AZ Award of Merit (Residential Architecture Multi-Unit category) in AZURE magazine’s

Project Control Professional November 2017 3

contents

Volume 55 No 6November 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

Office times: 9.00–4.00 Mon–Thurs9.00 –3.00 Fri

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

Advertising ManagerDavid Singh7 Priory GardensHamptonMiddlesexTW12 2PZTel: 020 8979 9858Mob: 07939 551929Email: [email protected]

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

© The Association of Cost EngineersAll rights reserved

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

Printed in the UK by Buxton Press LimitedPalace RoadBuxtonDerbyshireSK17 6AE

Front coverHuangshan Mountain Village in China

has won an AZ Award of Merit (ResidentialArchitecture Multi-Unit category) in AZURE

magazine’s 2017 Awards. See page 10.

4 President’s message

4 News & events

6 Prolongation cost claims – the basic principlesby Craig Enderbury

10 Cover story: Award-winning mountain village development

11 News & events

12 ‘mycareerpath’ – the ultimate online CPD toolby Roger M. Batten

16 News & events

17 ACostE Annual Report 2016–17Introduction and summary by Angela Pammenter, President

23 Your route to professional status via ACostE

24 Technical abstracts

24 News & events

25 New members

26 Diary of events

27 Association Council

27 ICEC news

Page 3: PROFESSIONALProject Control November 2017Front cover Huangshan Mountain Village in China has won an AZ Award of Merit (Residential Architecture Multi-Unit category) in AZURE magazine’s

Project Control Professional November 2017 54 Project Control Professional November 2017

Send your news to the Editor

Email [email protected]

Dear Colleagues,

In reviewing the Annual Report(reproduced in this month'sjournal) for the AGM, I wasstruck by the many and variedactivities undertaken by theDirectors, Council and RegionalGroups of the Association – andall on an entirely voluntary basis.In particular, the regionalmeetings offer the opportunityfor real face-to-face contact with

President’smessage

like-minded professionals,something that is lacking in thedigital age.

There is no doubt that a virtualpresence is important, and ournew website (going live inNovember 2017) goes some waytowards ensuring that weincrease our online presence.

We have reviewed the rolesand responsibilities of the Boardof Directors, and have publisheda ‘Who's who’ guide on thewebsite in an effort to increasethe visibility of the Directors andto provide added impetus to ouraction plan for the coming year.We will publish more on ouraims and ambitions in the nextissue of the Journal.

We have executed amemorandum of understanding

news & events

with the ECITB, building on theinformal relationship that wehave had in the past andidentifying areas for futurecollaboration. We are alreadyworking together on the newgeneration of QCF qualificationsfor project controls.

We are always looking toincrease our membership, as anincrease in our numbers enablesus to improve what we are ableto offer. Please feel free to passthe Journal on to anyone whomight be interested once youhave taken note of anyupcoming events.

Regards,Angela PammenterPresident ACostE

CorrectionOn page 25 of the September issue,

in the New Members section, IanPeter Hodges was incorrectly listed

as an Associate. Mr Hodges is aMember. We apologise for this

typographical error. Ed.

The ACostE Accreditation Committee

would like to congratulate Karl Horton

of Mott MacDonald who has achieved

Certified Professional Cost Engineer

(CPCostE). Karl is seen above (right)

being presented his Certificate by the

Accreditation Chairman, Alan Jones.

Certified ProfessionalCost Engineer –Karl Horton

It was great to see a good turn out again

to our latest branch event, with

attendees from various industries and

companies represented.

The ability to gain professional

recognition and qualifications in our

profession is of great interest and is

valued by the members.

Nigel Hibberd gave a presentation on

the Association, including the levels of

membership and the options for

professional qualifications that are

available.

Nigel also included a section on the

SW Region event –‘Professionalqualifications inproject controls’

Project Controls Apprenticeship, which

was launched this September.

The attendees all agreed that this is

an excellent initiative and will help

support our profession in becoming

established as a career of choice for

many people, including school leavers

and, in due course, improve the stand-

ing and capacity of the profession’s

workforce.

The evening also included an

excellent presentation from Isla Gordan

(one of Faithful + Gould’s planning

engineers), who has recently completed

the QCF Level 5 qualification and is

seeking to gain Incorporated Engineer

registration in the very near future.

Isla’s presentation outlined her experi-

ence of the QCF process, along with

the benefits she has derived from it.

Thank you to all the attendees who

contributed to the evening’s success

and to Faithful + Gould for hosting.

Rod Whiting, Chairman, South West Region

Nigel Hibberd

Page 4: PROFESSIONALProject Control November 2017Front cover Huangshan Mountain Village in China has won an AZ Award of Merit (Residential Architecture Multi-Unit category) in AZURE magazine’s

Project Control Professional November 2017 76 Project Control Professional November 2017

cost claims cost claims

Prolongation cost claims – the basic principlesHKA Quantum Expert Craig Enderbury* sets out the basic principles of prolongation cost claims using asimple and hypothetical example. He highlights the common pitfalls of assuming time equals money and themisguided application of rates and prices from preliminaries schedule of rates/bill of quantities.

Acontractor holds an internal

monthly meeting on a con-

struction project that is in

delay and over budget.

Someone remarks: ‘Let’s get an exten-

sion of time and then we can recover all

our time-related costs’, swiftly followed

with an enthusiastic reply: ‘Sounds like

a plan. We can adopt our tender rates for

preliminaries items and multiply the

rates by the period of over-run.’

If this scenario sounds all too fam-

iliar, then for some I daresay the alarm

bells have already starting ringing.

Despite there being a wealth of inform-

ation generally available on this sub-

ject, all too often prolongation cost

claims are incorrectly calculated and

submitted on the flawed basis set out

above. It should therefore come as no

surprise that prolongation cost claims

formulated in this manner are frequent-

ly rejected by the recipient.

To avoid this common pitfall and in

order to add credibility to a prolong-

ation cost claim, the claimant should

pause to consider, amongst other

things, whether time does actually

equal money and, if so, what and how

much is claimable? With regard to the

appropriate method of evaluation, is the

application of tender rates for prelim-

inaries too simplistic or should it be

based on the actual cost/loss incurred?

Are there any valuation rules pre-

scribed under the contract or is it a

damages claim, e.g., actual loss and

expense due to a breach of contract?

It would be impossible to provide all

the answers to such hypothetical quest-

ions. Each case (or claim) will turn on

the facts and has to be assessed on its

individual merits, the evidence, the

complexity and circumstances sur-

rounding the events and, of course, in

accordance with the contract and app-

licable governing law. Needless to say,

in the case of a claim arising from

breach of contract the burden of proof

rests with the claimant to demonstrate

the cause, the effect and its entitlement.

Remember that he/she who asserts

must prove!

So, what is a prolongation cost

claim? Succinctly, it can be defined as

the contractual mechanism for the

recovery of additional time-related

costs that have been properly incurred

due to compensable delay(s) to the

completion of the works.

Those eagled eyed will have noticed

the use of the term ‘compensable’

delay. At this juncture it is worth taking

a few moments to make the distinction

between the terminology ‘compens-

able’ delay as opposed to ‘excusable’

delay and ‘disruption’. And, of course,

there is always the much debated issue

of ‘concurrent’ delays, which is touch-

ed upon later.

Compensable delay – These are events

that give rise to an entitlement to

extension of time to the project com-

pletion date and an entitlement to

recovery of prolongation costs.

Excusable delay – These are events

that give rise to an entitlement to

extension of time to the project com-

pletion date (and therefore relief to

liquidated damages) but not necessarily

an entitlement to the recovery of pro-

longation costs, for example, neutral

events such as force majeure, like

adverse weather conditions whereby

typically the parties bear their own

costs.

Disruption – There are a myriad of

events that may impact on cost but do

not necessarily trigger any entitlement

to extension of time to the project

completion date and therefore no

prolongation costs. An example of such

event could be the resequencing of

programme activities resulting in a loss

of productivity that may impact the

overall cost of performing the affected

activities, but does not impact on the

programme critical path activities

driving the project completion date. In

such instances the cost is localised to

the affected activities, not the prolong-

ation of the project as a whole. Such

events can be classified as disruption as

opposed to delay.

For the purpose of prolongation cost

claims, the delay(s) to the completion

must be the consequence of a compens-

able delay to the completion of the

works, i.e., it is a direct result of a site

instruction, variation or change order,

the occurrence of a specified employ-

er’s risk event or employer’s breach,

e.g., an act of prevention, denied access

or possession of the site or the adverse

effect to the regular progress to the

works due to the late approval of

design, the late delivery of employer

documentation or free issue plant/

equipment.

In short, to warrant payment of

prolongation costs the delay must be

compensable, affect the critical path

and delay completion of the works.

Any prolongation cost claim that

includes costs attributable to contractor

culpable delays, concurrent delays, the

occurrence of contractor’s risk events

or neutral events (e.g., force majeure) is

likely to be rejected in principle by the

employer, as the contractor usually has

no entitlement to the recovery of time-

related costs under such circumstances.

With regard to compensation, the

Delay and Disruption Protocol issued

by the Society of Construction Law

provides the following guidance:

‘Compensation for prolongation shouldnot be paid for anything other thanwork actually done, time actually takenup or loss and/or expense actuallysuffered. In other words, the com-pensation for prolongation causedother than by variation is based on theactual additional cost incurred by thecontractor.’

Often I see prolongation cost claims

predicated on the additional time-

related costs during the over-run period

between the original completion date

and the actual completion date. This is

incorrect as it does not represent the

actual loss and expense suffered at the

time the project was actually delayed.

For example, an original project

completion date of 1 August was

delayed by four weeks to 29 August,

due to an earlier four-week critical

delay that occurred in March the same

year. The delay event occurred in

March not August and, therefore, it is

the loss suffered in March that should

be quantified.

It is, therefore, vitally important to

identify the root cause of delay, when it

occurred and finished and the con-

sequential effect the delay event had on

the regular progress of the works and,

in turn, the impact on completion of the

works. All too frequently problems

arise when parties are unable to agree

when the delay(s) occurred and/or are

unable to agree the extent and impact of

the delay(s). Quite often an area of

disagreement is the matter of con-

current delay. A useful definition of

concurrent delay can be found in the

case of Royal Brompton HospitalNational Health Trust v Hammond as

follows: ‘Two or more events occurring

within the same time period, each

independently affecting the Com-

pletion Date.’

As alluded to above, concurrency

will affect the contractor’s entitlement

to prolongation costs where a con-

tractor culpable delay runs concurrent

with compensable delay. The topic of

true concurrency and dominant delay

has been, and undoubtedly will con-

tinue to be, the subject of much debate

and case law. This is a topic in itself

which is best left to the expert delay

analysts to opine on and lawyers to

litigate over.

In layman terms when preparing a

claim for prolongation costs: If theculpable delay extends over a longerperiod than the compensable delay, thecontractor will have no entitlement toprolongation costs. If the compensabledelay extends for a longer period thanthe culpable delay, then the contractoris entitled to prolongation costs for theperiod where the compensable delay isnot concurrent with the culpable delay.

The theory is that if the contractor’s

actions, or lack thereof, is the root

cause of its own losses during a period

of delay, then the contractor cannot

benefit from its own failings/breach by

being reimbursed losses that it has

caused.

Figure 1 summarises a hypothetical

scenario. It shows the summary

analysis of a contractor’s entitlement

(in calendar days) to extension of time

and loss and expense taking account of

excusable, culpable and concurrent

delays as well as float.

So, having performed a delay

analysis and calculated an entitlement of

62 calendar days for loss and expense,

how should a contractor approach

valuing its prolongation costs?

Generally, prolongation cost claims

need to reflect the actual loss/cost

incurred, not a sum derived from pre-

liminaries rates and prices contained in

the contract price. A pragmatic way of

calculating prolongation costs is to

work out an average actual time-related

costs during the delay periods.

The following suggestions and exam-

ples should assist with the exercise of

ascertaining the average actual time-

related costs:

� Identify and review the cost pool

(usually obtained by a detailed

analysis of account records, cost

reports, payroll, invoices etc.).

� Strip out all the direct costs (i.e.,

fixed costs and task/volume-related

costs linked to units of work) and

any other one-off costs/fixed charges

that are not time-related, e.g.,

mobilisation charges that would

have been incurred in any event.

� Having identified the indirect time-

related costs (including an

unabsorbed off-site/head office

costs) these should be linked to the

activities and project duration.

� Don’t be tempted to add a % profit

mark-up for profit, as profit is not a

‘cost’ incurred by the contractor as a

direct consequence of a

compensable delay. Any loss of

The burden ofproof rests withthe claimant todemonstratethe cause, theeffect and itsentitlement.

Figure 1

Page 5: PROFESSIONALProject Control November 2017Front cover Huangshan Mountain Village in China has won an AZ Award of Merit (Residential Architecture Multi-Unit category) in AZURE magazine’s

Project Control Professional November 2017 98 Project Control Professional November 2017

profit is a ‘loss of opportunity’,

which is an entirely separate subject

matter requiring different means of

demonstration and calculation.

� Where applicable, calculate the

adjustments and/or abatements for

any indirect time-related costs that

have already been recovered

elsewhere, e.g., under dayworks,

variations or other claims. This will

avoid any potential criticism of

‘double dipping’.

� Demonstrate that the costs being

claimed could not have been

mitigated, e.g., off hiring of

plant/equipment, lowering of

resources or redeployment of

resources to unaffected activities.

� Evidence the costs have been or will

be incurred – records, records,

records!

Having identified when the delay

occurred, a precise calculation of cost

can be made for that period. An

example is shown in Figure 2.

The process is then repeated for the

other periods, in this hypothetical

example periods 2, 3 and 4.

Figure 3 shows the summation of the

prolongation cost calculation by

applying the average actual cost per

day to the period of loss and expense

entitlement measured in calendar days.

SummaryThe project completion date was

delayed by 84 days, of which the

contractor is entitled to an extension of

time of 74 days. Despite having

established entitlement to 74 days

extension of time, the contractor is only

entitled to recover prolongation costs

for 62 days falling into periods 3 and 4.

The actual prolongation costs recovery

is therefore £95,572.86 less an

abatement of £24,580.00 for costs

already recovered in dayworks and

Figure 2

cost claims cost claims

Figure 3

variations during the time period

claimed.

Conclusion This very simple and hypothetical

example sets out the basic principles of

prolongation cost claims and highlights

some the common pitfalls of assuming

time equals money and the misguided

application of rates and prices from

preliminaries schedule of rates/bill of

quantities.

* Craig Enderbury, BSc, PGDipArb,

FACostE, FCIArb, AMAE

Position: Executive Director

Email: [email protected]

Tel: +44 (0)121 717 5770

Location: Birmingham, UK

Services: Quantum

Sectors: Aerospace, defence, security &

space, buildings, industrial,

infrastructure, oil & gas, power &

utilities, technology

HKA. decoding project complexity

HKA is the new global brand that unites

the former Construction Claims and

Consulting Group of Hill International

and associated subsidiaries. Following

its sale and de-merger, HKA is now a

privately-owned organization with

management equity, supported by

Bridgepoint Development Capital, part

of Bridgepoint, a major international

private equity group with its

headquarters in London, UK.

‘At HKA we anticipate, investigate

and resolve project challenges. We

understand the pressures associated with

delivering successful projects, whatever

their size and complexity, wherever in

the world. For over four decades we’ve

stood alongside our clients as trusted

independent advisers, finding solutions

amid uncertainty, dispute and overrun.

From construction and manufacturing to

processes and technology, our people

provide the advisory, consulting and

expert insight that make the best

possible outcomes a reality for public

and private sector clients worldwide.’

Craig Enderbury

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

Site Establishment

Site Establishment

Site Establishment

Page 6: PROFESSIONALProject Control November 2017Front cover Huangshan Mountain Village in China has won an AZ Award of Merit (Residential Architecture Multi-Unit category) in AZURE magazine’s

10 Project Control Professional November 2017 Project Control Professional November 2017 11

cover story

Huangshan Mountain Village in China has won an AZ Award of Merit (Residential ArchitectureMulti-Unit category) in AZURE magazine’s 2017 Awards

Project: Huangshan Mountain Village

Location: Huangshan, China

Firm: MAD Architects, China

Team: Yosuke Hayano, Dang Qun andMa Yansong with Jakob Beer, PhilippeBrysse, Tiffany Dahlen, AndreaD’Antrassi, Augustus Chan, WangDeyuan, Jeong-Eun Lee, Geraldine Lo,Luke Lu, Achille Tortini and Zhao Wei

With their dramatic limestone cliffs,the Huangshan mountains of easternChina are the kind of landscape peoplewrite poems about. HuangshanMountain Village, a suite of residentialbuildings by MAD Architects, blends inperfectly with its surroundings.The structures’ profiles resemblemounds of sediment, like stalagmitesor hoodoos; on each level, therounded, irregularly shaped floorplates extend past wraparound

windows, creating 360-degreebalconies. Taken together, thesculptural peaks form a balancedcomposition that’s as stunning to lookat as it is to look out from.

AZURE magazine

Launched in 1985 AZURE is an award-winning magazine with a focus oncontemporary architecture and design.

Award-winning mountain village development

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.

news & events

The new centre will be built on the

Royal United Hospital’s (RUH) Combe

Park estate, and will combine existing

therapies services at the RUH with

those of the world renowned Royal

National Hospital for Rheumatic

Diseases (RNHRD), currently located

in the centre of the city.

Situated in a prominent position adj-

acent to the main entrance of the

hospital, the building will become

home to General Therapies, Hydro-

therapy, Rheumatology and Pain Man-

agement Services, as well as allied

administration and support areas.

IBI Group Architect & Studio

Associate Director, Richard Ager. said:

‘Our IBI Healthcare+ team has worked

closely with the Trust to create a very

interesting, new outpatients centre; one

that is in tune with the Trust’s holistic

and patient-focused model of care. Its

architectural features have been shaped

by the diverse number of therapies

services that it will support, from the

stimulating body shop gym that opens

out onto a patients’ activity courtyard,

to a calming and therapeutic spa-

inspired hydropool overlooking a

secret garden.’

Sustainable design features include:

optimum natural ventilation, roof top

wind catchers, photovoltaics, and a

‘BluRoof’ stormwater management

system.

Gina Sargeant, Head of Therapies at

the RUH and RNHRD said: ‘We are

creating a nurturing environment with

dedicated specialist facilities for our

patients. Designed in conjunction with

staff and patients, the Centre will in-

clude a large hydrotherapy pool,

specialist gym and rehabilitation equip-

ment, and a Biologics treatment space

to support treatment, recovery, well-

being and the management of long-

term conditions.’

The Royal United Hospitals Bath

NHS Foundation Trust provides gen-

eral acute and emergency care for a

population of around 500,000 people in

Bath and the surrounding areas.

IBI Group has been working with the

Royal United Hospitals Foundation

Trust since 2008, when it was com-

missioned to assist in developing their

estates strategy. The team subsequently

designed the re-provision of the blood

sciences, histopathology and mortuary

departments together with a new

pharmacy, and is currently designing the

proposed new Dyson Cancer Centre.

New Therapies Centre to be built in Bath

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12 Project Control Professional November 2017 Project Control Professional November 2017 13

technical paper technical paper

‘mycareerpath’ – the ultimate online CPD tool

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14 Project Control Professional November 2017 Project Control Professional November 2017 15

technical paper technical paper

Page 9: PROFESSIONALProject Control November 2017Front cover Huangshan Mountain Village in China has won an AZ Award of Merit (Residential Architecture Multi-Unit category) in AZURE magazine’s

Project Control Professional November 2017 1716 Project Control Professional November 2017

annual report

Send your news to the Editor

Email [email protected]

This year has been a year ofconsolidation for the Asso-ciation – we have welcomednew members onto Council,

said farewell to two of our Directors,and engaged a new full-time memberof staff in the office. We are still lookingfor additional volunteers to joinCouncil and help us to push thingsforward. Our membership continuesto grow, and we have seen 147 newmembers during the past year.

The Regions are moving fromstrength to strength, with interestingspeakers and opportunities for face-to-face networking – something thatyou just do not get from an onlineforum. We are looking to set up aMidlands cluster, which could dev-elop further into a fully-fledgedregion if there is sufficient interest. Istrongly recommend members toa�end local meetings whenever poss-ible – you can be assured of a warmwelcome and an interesting topic fordiscussion, as well as the opportunityto add to your CPD.

On the subject of CPD, themycareerpath system is available to allmembers, providing an independent,personal and portable record of CPDthat can accompany you throughoutyour career. It is intuitive and easy touse, and can hold an ongoing record toall your training and personal dev-elopment, wherever your employ-ment may take you.

We have not held our own con-ference this year – something that weare hoping to remedy next year.However, we have supported thevery successful events organized byCranfield, SCAF and the ProjectControls Expo.

We are initiating a Young Profess-ionals group, bringing together

people who are starting out on acareer in the project controls disci-plines from across different industrialsectors. Through working together tosupport specific projects we hope thatthey can share best practice fromacross the different sectors, helpingthem to grow in confidence andknowledge whilst providing theAssociation with the necessary horse-power to move forwards.

It has been a tough year for TASC,who have seen a drop in candidatenumbers, reflecting the state of the oiland gas industry and overall lowertraining budgets. The TASC Boardhave worked to reduce overheadcosts, increase the training courses onoffer, and expand into new sectors.Together with the ACostE Board theyhave played an important role inge�ing the new Level 3 ProjectControl Apprenticeship approved,and are working towards a new Level6 Apprenticeship and the revisedQCF qualifications.

The demand for ProfessionalAccreditation through the Associ-ation continues to increase, placing aheavy load on the AccreditationBoard and on Alan Jones and NigelHibberd in particular. We have celeb-rated significant success in awardingCertified Professional status to anumber of applicants, and have arecord number of candidates inprogress.

Internationally, as a founder mem-ber of the ICMS, we are very proud toconfirm that the first truly inter-national construction measurementstandard has been published and isavailable for use. The work that hasgone into the development of thestandard has been considerable, andwe hope that the benefits of the

standard will soon become apparentas it is adopted throughout industry.Our representative (Alec Ray) hastaken over as Chair of ICEC Region 2(Europe), and will chair a meeting tofollow on from the Project ControlsExpo in November. Through ourmembership of ICEC we are able toaccess papers and publications fromother ICEC members worldwide,some of which you will have seenreproduced in the Journal.

Finally, our online presence hasbeen revamped and updated, withthe publication of our new websiteand membership database. We willbe rolling out additional contentthrough the coming months, im-proving the content and simplifyingour administrative tasks. We haverelaunched our Linked-In pages, andencourage participation and contri-bution to online discussions, sharingyour expertise and insights.

As always, we welcome any inputfrom the membership. We exist tofurther the cost engineering profess-ion, to maintain our reputation as thelearned society representing costengineers, schedulers, estimators andproject controls professionals, and toenhance the professional standing ofour members. To do this we needvolunteers who are willing to takepart, and we need to understandwhere to focus our a�ention as wemove forwards. Should you wish totake a more active role in theAssociation please contact Vanessa,Helen or Sophie in the office in thefirst instance, or email me directly([email protected]).

Angela Pammenter President

Association of Cost Engineers Limited

Annual Report 2016–2017Introduction and Summary by the President

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 paper

news & events

Mega trends such as virtual reality,

augmented reality and additive manu-

facturing play an increasing role in data

conversion. CoreTechnologie has now

extended the standards of data

conversion software 3D_Evolution and

has developed an innovative 4.1

version.

The developer team of the German-

French software producer Core-

Technologie has adapted the data

conversion software 3D_Evolution to

the latest trends in CAx and Industry

4.0 and implemented clever inno-

vations.

Virtual and augmented reality

Version 4.1 of the Simplifier module of

the conversion software 3D_Evolution

serves the requirements of digitization

trends such as Virtual Reality (VR) and

Augmented Reality (AR).

The module generates in seconds an

envelope geometry from detailed CAD

models for know-how protection. With

a new FBX interface the CAD models

from all common formats are extremely

reduced and stored in the VR and AR

standard. The number of polygons can

be reduced by 90 per cent and more, so

that large models can now be displayed

quickly in augmented reality glasses.

Additive manufacturing

The megatrend of additive manu-

facturing will be updated with the

actual software version under the new

3MF and AMF formats. In addition,

CoreTechnologie is working on the

next major release of its tools on the

next generation of a revolutionary

additive manufacturing software.

On the pulse of time

With the latest version of the successful

3D_Evolution data conversion soft-

ware, which is now used by more than

500 leading companies around the

world, the innovative software com-

pany continues the successes of recent

years. The latest formats, such as

CATIA V5 R27, CATIA V6, NX 11 and

JT 10.2 as well as the new standard of

the aerospace industry STEP AP242 are

supported for the loss-free conversion

between all current systems.

CoreTechnologie provides three to

four new versions and service packs per

year to ensure that the updates are

always available promptly and usually

well before the update cycles in the

industry.

For further information, please visit

www.coretechnologie.com.

Augmented reality and additivemanufacturing in data conversion

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Project Control Professional November 2017 1918 Project Control Professional November 2017

Project Control Apprentice/Degree

Route, again at Birchwood Golf Club.

Dave charted his journey from being

one of the first Project Control appren-

tices to his role at Costain’s as a senior

planner and how he valued each step of

the way. This led to a spontaneous

discussion with the attendees, who

showed a great deal of interest. The

original idea was to phase this to the

soon-to-be-announced trailblazer

Project Control apprenticeship, which

is scheduled to be released in Q4 2017.

On 17 May 2017 a presentation at the

Birchwood Conference Centre was

given on Managing the Contract:

focusing on setting up a contract for

success and avoiding some of the

common pitfalls, by John Rossiter of

Solomon’s Europe and Joe Hale of

Freeths LLP. This was a fascinating

topic and very well received by the

attendees.

On 20 June 2017, Kevin Sinton from

Sintons Solicitors delivered an excel-

lent session on NEC3 – compensation

events and unexpected events. The

session was delivered to a large

audience at UCLAN Samuel Lindow

building in Whitehaven.

On 28 June 2017, we tried a new

Cumbria cluster location of Furness

College in Barrow on NEC 3 –

Extensions of Time, again given by

John Rossiter of Solomon’s Europe.

The results from this first event in

Barrow are very encouraging and plans

are afoot to hold more events in this

region in the future.

With the launch of NEC 4 we

decided to get ahead of the game and

carried out a series of events in the NW

and NE regions entitled NEC4

Unwrapped – the Northern Road Show,

utilising John Rossiter’s extensive

knowledge of the NEC contracts to

deliver the presentations. These were

all well attended and enthusiastically

received by all attendees.

The event dates and locations were as

follows:

• 5 July 2017 – Durham Cricket Club

(NE Region).

• 12 July 2017 – Birchwood

Conference Centre

• 19 July 2017 – UCLAN Samuel

Lindow Westlake’s Science Park

Whitehaven.

The first meeting in the next report-

ing year is planned for Birchwood in

September on the Northern

Powerhouse Infrastructure Projects,

with speakers talking about the

expansion of Manchester Airport and

High Speed Rail 2a. This will be

followed by a presentation on Docu-

ment Control in November. With all

the success of the Northern Regions’

events, we are keen to see if this

increased activity is leading to an

increase in the membership in the

respective regions.

Overall, the Northern Regions are

very pleased with the way things have

continued to grow over the year, with

the opening up of new venues in new

regions. We are now also exploring the

feasibility of a Midland cluster as a way

of trying to encourage a greater

participation from both the outlying

and local membership.

We have continued to capture

attendance from members of CICES,

with whom we have a Memorandum of

Understanding, and are able to attend

their meetings as part of a reciprocal

arrangement. We plan to build further

on this relationship in the next year.

We would like to thank all the

members who attended our seminars

and made them a success. We look

forward to meeting more of our NW

community in the coming year

2017/18.

Any volunteers for the NW Region

Organising Committee, please contact

us through the Sandbach office, tel:

01270 764 798. Similarly, any NW

volunteers to present a topic for an

evening, say 45 minutes to 1 hour, also

please contact Sandbach.

NW Region Committee

Dominic Doig (retiring Chairman)

Mark Coburn (Joint Chairman)

Rosie Dutton (Secretary)

Nigel Hibberd

Chris Seddon

James Evans

Ken Phillips

Dominic Doig

South West RegionWe have had another increase in

attendance this year at our evening

events hosted at F+G’s offices at Aztec

West, Bristol, with growing numbers of

attendees from a number of organ-

izations within the area. Andrew

Langridge’s presentation on the value

and importance of data collection,

collation and management was parti-

cularly well received.

The transition from Chair of the

branch from Paul Clewes to myself has

been seamless and Paul continues to be

very active in the planning and co-

hosting of the events.

The need for CPD activities among

the attendees is helping to support the

increase in attendance and I expect this

will lead to further increase in the

future.

We are looking for our next event in

the autumn to share the qualification

and apprenticeships that are available

to project controls professionals. This

will be presented by Nigel Hibberd

with Isla Gordon as a young profess-

ional who has recently completed the

QCF Level 5.

We are continuing with our strategy

of offering events which provide

valuable CPD to our experienced

members and their organizations, along

with events that attract younger

members.

Rod Whiting

InternationalThe Association has been a leading

member of ICEC (the International

Cost Engineering Council) since it was

founded, in 1976, to promote

cooperation between national and

multinational Cost Engineering, Project

Management and Quantity Surveying

associations. There are now 48

member associations, represented in

four regions worldwide. ACostE

members, by virtue of the Association’s

membership of ICEC, are all part of a

unique network of the knowledge and

experience of some 180,000 cost

professionals in over 120 different

countries.

The ICEC website (www.ICostE.org)

is continually evolving and has links

annual report annual report

Seddon of Costain Ltd, James Evans of

URENCO Ltd, Ken Phillips of AMEC

FW and Mark Coburn of Solomon’s

Europe who has recently re-joined the

Committee to replace Dominic as

Chairman. Dominic is relinquishing his

Chairman role to concentrate on grow-

ing the Cumbria region.

We have continued to hold several

evening seminars during 2016/17 and

have seen a large increase in attendance

at the seminars that have been delivered;

some events achieving in excess of 50

persons. This is considerably more than

the 25–30 person average attending

events in 2014/15 season. During the

period of this report, the NW Region has

developed further the Cumbria area

(with events held in both Whitehaven

and Barrow areas, supporting the large

contingent of members working at

Sellafield & BAE Barrow, respectively).

In addition, a committee has been

formed to develop the North East

Region and several successful events

have been held in that area.

The following meetings have been

held over the 2016/17 year. The first

meeting was held at Westlakes Science

& Technology Park, Cumbria, on 7

September 2016. This was a presen-

tation by Mike Millet of Solomons

Europe on NEC3 Auditing: the payment

for and responsibilities for under the

contract. We held the event again in the

NW area on 28 September 2016, in the

Birchwood Conference Centre.

Our final meeting for 2016 was at

Birchwood Golf Club on 16 November.

It was delivered by Alan Jones of

EST.i.MAT-A on IRiS – inherent risk in

spreadsheets and how to structure

spreadsheets to minimise risk by sub-

sequent users’ updates, and scoring

process to assess how well structured

spreadsheets are, which the attendees

found very to be a very useful approach.

On 25 January 2017, at Birchwood

Golf Club, Ken Phillips of Philips

Project Services Ltd gave part two of

his very interesting lecture on Project

Delivery, Growth and Collaboration:

looking at how the implementation of

BIM is going both in the client and the

contractor organizations.

On 22 March 2017, Dave Fogarty of

Costain presented his lecture on the

Talk by Andrew Wooldridge-Irving at

the Royal Over-Seas League, London.

22 March 2017 – ‘The Thames

Tideway Tunnel Project”

Talk by Geoff Loader at the ROSL,

London.

16 May 2017 – ‘Heathrow Airport’

Talk by Mike Ball at the ROSL,

London.

12 July 2017 – ‘The Ancient City at

Night’. Guided walking tour around

the financial city area starting at the

Bank underground station.

The three technical meetings were

held at the Royal Over- Seas League,

which still provides good facilities in

the centre of London, even though

expensive. Our speakers have all pro-

vided excellent talks which attracted

interest from many members.

Unfortunately, I was not able to agree

a suitable date for the Wine Tasting this

year and so decided to have another

technical meeting instead. as Mike Ball

had previously offered a talk on

Heathrow. Mike Ball is prepared to make

an article for the Journal. The Wine

Tasting evening is an enjoyable, but

expensive item within our budget as we

now have to hire the room at the ROSL.

I wish to thank Pauline and Paul

Vosper for organizing the July evening

guided tour. The tour in July was based

around the financial area of the City and

was enjoyed by members and guests.

Our Committee Meeting was held in

July in the Coal Hole Public House in the

Strand. We welcome Mike Ball onto the

Committee, who will bring a younger

perspective into discussions about our

future programme of events. I wish to

thank James Studman for issuing the

minutes and the remaining committee for

their support during the year.

Stephen Allen

North West RegionThe NW Region Committee consists of

Dominic Doig MD of Solomons

Europe (Chairman), Rosie Dutton of

Sellafield Ltd (Secretary), Nigel

Hibberd from ACostE Council, Chris

MEMBERSHIP ACTIVITY

AdministrationThe Administration Office hours are

Monday to Thursday 9 am – 4 pm and

Friday 9 am until 3 pm.

The office staff are Helen Jackson,

Vanessa Tattersall and Sophie Jackson.

Email is the preferred method of

communication and we would ask that

you let us know if you change your

email address in order to maintain

contact. This has enabled large savings

to be made on our postal and stationary

costs.

We are always happy to hear from the

membership if they have any com-

ments or queries regarding the running

of the administration. Please use the

online facility through the website to

keep details up to date and assistance

will always be given from the office to

guide members through the procedure

if they experience problems.

AdmissionsThere has been an increase in the

number of applications we have dealt

with compared with last year. The

Committee aims to turn round appli-

cations received in two to three weeks.

Applications are being received from

the UK and various areas around the

globe and new members are also

coming via the QCF Learner route.

The number of applications for

membership, upgrade and reinstate-

ment are detailed below:

New Members: 147

Upgrades: 9

Reinstatement: 5

Vernon Thompson

REGIONSSouthern RegionThe Southern Region has been

provided with the following pro-

gramme of events:

• 16 Nov 2016 – ‘Victoria Station

Upgrade Project’

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Project Control Professional November 2017 2120 Project Control Professional November 2017

with many other groups’ websites. The

International Round-Up is published

on the website, in the autumn and in the

spring, and there is a section where all

Notices, Agendas and Minutes of

Meetings are available.

Communication between ICEC

officers, delegates and member asso-

ciations is almost exclusively by email.

The ACostE Certification Pro-

gramme is accredited by ICEC.

Certified members may use the ICEC

name and logo and the initials ‘ICECA’

(ICEC accredited) after their name.

ACostE President Angela Pammenter

(as ACostE Delegate), Roger Batten (as

Past-Chairman of ICEC and ICEC

Advisory Group Chairman) and Alec

Ray (as ICEC Region 2 Director) have

all been active in representing the

Association within ICEC.

Angela Pammenter, Alec Ray and

Roger Batten attended the 40th ICEC

Council meeting, which was held on

Saturday 8 and Sunday 9 October prior

to the 2016 10th ICEC World Congress

(the 24th International Cost Engin-

eering Congress) which was hosted by

the Instituto Brasileiro de Engenharia

de Custos (IBEC) at the Hotel Winsor

Barra, Rio de Janeiro, Brazil, from

Sunday 9 to Wednesday 12 October.

Some 40 delegates, from all four ICEC

Regions, attended the Council Meeting,

with noticeably more female delegates

attending than at previous meetings.

In recognition of significant contri-

butions to the work of the Council the

ICEC Region 2 Awards were made to

Andrej Kerin (Slovenia) and Alec Ray

(UK). A proposal was put forward to

establish a new ICEC Director position

for a Middle East Region and Madhu

Pillai was subsequently elected to this

position.

AACE-International signed a new

Memorandum of Understanding with

the RICS on Monday 10 October 2016.

This MOU is modelled after other

Association MOUs and provides a

framework to acknowledge each

other’s intellectual property and

certifications, and opportunities to

collaborate on an increasingly global

scale on various industry initiatives.

The Congress attracted around 500

delegates of whom about 50 were

students. Some 300 papers had been

received, of which 90 were presented,

in four streams, and there were also 11

exhibition stands. IBEC introduced a

new concept, each morning all the

delegates met together and a panel

discussion was held. The topics

included ‘The Reality of Cost

Engineering Worldwide’ and ‘Inno-

vative Trends in Project Management’.

Panellists included the IPMA President,

Reinhart Wagner; the RICS Global

President, Amanda Clack; the RICS

Director of Built Environment Profess-

ional Groups and Forums, Alan Muse;

the AACE-I President, John Livengood

and Alec Ray.

Alec Ray and Roger Batten attended

the ICMS Launch Event at the RICS in

London on Friday 11 November. Also

present were Dr Alexia Nalewaik

(ICEC Immediate Past Chairman) and

T.T. Cheung (ICEC Chairman). This

event focused on the challenging nature

of the construction industry and looked

at how ICMS can facilitate greater

transparency and investment. The

International Construction Measure-

ment Standards Coalition (ICMSC) is a

growing group of more than 40

professional and not-for-profit organ-

izations from around the world, work-

ing together to develop and implement

international standards for bench-

marking, measuring and reporting

construction project cost.

Roger Batten met with Peter Smith

(ICEC Secretary General), at the RIBA

on Friday 9 December. He was very

pleased to have been able to meet with

the ACostE Directors previously and

was impressed by the ACostE’s

Accreditation programme

Discussions have continued with the

Royal Institution of Chartered

Surveyors (RICS) on closer co-

operation. The RICS acknowledges

that the ACostE traditionally has

strengths within the engineering and

manufacturing communities with very

good international connections and

consider that we complement each

other in the areas of Total Cost

Management/Project Controls and

Project Management, with very little

overlap. ICEC and the RICS already

have a Memorandum of Co-operation

(MOC) that was signed on 27 June

2012 during the 8th ICEC World

Congress in Durban, South Africa.

The next ICEC Region 2 (Europe and

the Near East) meeting is being hosted

by the Association and will be held in

London on Friday 17 November 2017.

This will be at the end of the week of

the IET/ACostE Project Controls

Network Prestige Lecture and the 2017

Project Controls Expo, which will be

added attractions for our international

delegates.

The 2018 11th ICEC World Congress

(the 25th International Cost Engin-

eering 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 26th International Cost Engin-

eering Congress) will be hosted by the

Ghana Institution of Surveyors

Quantity Surveyors Division (GhIS).

Alec Ray

FinancialA difficult trading year for The

Assessment Service Centre resulted in

a severe drop in the number of

registered candidates, due mainly to

reductions in industry training budgets

and uncertainty over the revised

qualifications currently being prepared

on behalf of government. However,

even though this produced a reduction

in turnover, budget savings resulted in a

positive cash balance at the end of the

year. The Association itself, mean-

while, continued its business success-

fully within budget, while at the same

time investing in new technology for

the future.

Roger Carter

COMMUNICATIONSProject Control ProfessionalThe Association is still producing six

issues per year. We are indebted to the

Editor, Clive Wellings, for the pro-

duction of the Journal.

Contributions of technical papers,

case studies, opinion/comment pieces,

news, appointments, etc., are always

welcomed. Anyone wishing to con-

tribute should email the Editor via

[email protected].

The Journal is despatched through a

mailing house but the increase in

postage rates to Europe and Overseas

has put expenditure at a high cost.

Any constructive comments that

members have are always welcome.

TECHNICALACTIVITIESEngineeringThe Engineering Committee oversees

the activities of the Association relating

to the Engineering Council and the

registration of members as Chartered

Engineers (CEng), Incorporated Engin-

eers (IEng) and Engineering Tech-

nicians (EngTech).

Members of the Committee

R.M, Batten, CEng, FICE, FACostE

F.B. Cowell, CEng, MIMechE,

MACostE

R. Dutton, CEng, MACostE

N. Hibberd, CEngMIMechE,

MACostE

K. Kapoor, CEng, MACostE

H.H. Malleson, CEng, MIMarE,

MACostE

R.W.D. Plumb, CEng, MIStructE,

MACostE

G.W. Stokes, CEng, FIChemE,

FACostE

M. Younger, CEng, AMIMechE,

MACostE

The Engineering Council Liaison

Officer is:

B.L. Sefton-Smith, IEng, FIHIE

The Committee usually meets three

or four times a year on a Tuesday

morning at the beginning of a month.

We would welcome hearing from other

CEng, IEng or EngTech members of

the Association who could be interested

in joining our Committee.

Two members of the Committee are

Engineering Council Volunteers, Roger

Batten and Howard Malleson, Howard

Malleson acting as ECUK Liaison

Officer on the Membership Committee

of the IET.

Roger Batten, Bryan Sefton-Smith

and Geoff Stokes attended the the

ECUK Professional Affiliates Seminar

on Thursday 29 September 2016 at the

EngC.

Roger Batten, Howard Malleson and

Brian Sefton-Smith attended the ECUK

Liaison Officers Seminar in November

2016 at the EngC. They also attended

the ECUK Volunteers Seminar, on

Wednesday 5 May 2017 at the ICE.

The Association is a Professional

Affiliate of the Engineering Council

and, currently, has an agreement with

the Society of Environmental Engin-

eers (SEE) to enable suitably qualified

members of the ACostE to achieve

registration with the Engineering

Council through Joint Membership.

However, once registered, candidates

do not have to continue with this joint

membership. Under this agreement,

five candidates have achieved regi-

stration as Chartered Engineers and

four candidates have achieved regi-

stration as Incorporated Engineers.

Currently 34 members are registered as

Chartered Engineers and nine members

as Incorporated Engineers through the

Association.

Following the 5-Year Review, held at

the EngC on 31 August 2016, the

Association’s status as an Engineering

Council Professional Affiliate has been

renewed for a further five years.

Following this we were asked to review

our governance documents and

institute a document control system,

submit a formal document detailing

progress against our strategic object-

ives and produce an updated regi-

stration agreement with SEE.

The Engineering Council Third

Edition of the UK-SPEC (UK Standard

for Professional Engineering Com-

petence) and the latest ‘Pink Book’

–‘Pocket Guide to Professional

Registration for Engineers and

Technicians 2016’ are available

through the EngC website.

The ACostE Council have agreed

that all members, including registrants,

are required to practise Continuing

Professional Development (CPD) and,

to this end, has adopted the Engin-

eering Council’s MyCareerPath com-

puter based system. This system has

already been adopted by some 30 other

engineering institutions, and individual

ACostE members are urged to use this

to maintain their CPD records. The

Committee will be randomly sampling

the CPD records from a selection of our

registrants.

The Committee have supported the

work of the Accreditation Committee

in developing the ‘Incorporated’ level

qualification based on the Engineering

Council’s UK-SPEC but without the

emphasis on general and specialist

engineering knowledge and under-

standing. Those qualifying at Incorpor-

ated level, like registered engineers,

must be able to demonstrate their

competence to perform professional

work to the necessary standards.

Competence includes the knowledge,

understanding and skills which under-

pin performance

Roger Batten

EDUCATION AND TRAININGTASCIntroduction

The year ending in March 2017

achieved enrolment of 16 learners on

QCF Diploma programmes. The poor

uptake reflects two major factors:

current business climate and the

uncertainty about the future of the

Diploma programmes.

Financial status

The QCF enrolment numbers at TASC

of 16 have meant that measure have

had to be taken including reductions in

budgets to maintain a cash reserve.

The market downturn driven, to a

large extent by the reduced oil price,

has been the major cause with cutbacks

to training programmes. The ongoing

changes dictated by Government have

also added an uncertainty which has

resulted in many organizations putting

plans on hold.

Estimating and training courses

The revenue from the Estimating

annual report annual report

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22 Project Control Professional November 2017

course has continued. The future of this

course is under review although a

reasonable take up has been achieved.

ECITB

TASC is part of the Qualifications

Working Group, which is rather

belatedly focusing on the revisions to

QCF to start in January 2018. The

changes have required a re-think of

structure and delivery methods.

End Point Assessment (EPA) for

Apprentices is also under consider-

ation, in conjunction with ACostE and

ECITB.

TASC Strategic Review

Whilst TASC/ACostE Accreditation

can provide services to members and

client organizations for Project Control

assessment, career development and

Continued Personal Development

(CPD) they are all under review at this

time.

TASC operations overview

The poor enrolment in 2017 has put the

revised TASC management system on

hold.

J. Ward/R. Carter/D. Langton

Accreditation2016/17 has been a year of consoli-

dation and growth for the Accreditation

Board/Committee.

Due to the work and private commit-

ments of its volunteers it has again been

difficult to arrange committee meetings

and most of its business this year has

been conducted by email. However, we

have recently held a Committee Meet-

ing with some new volunteers.

There are some 86 people registered

on the programme who have yet to

complete, or have withdrawn. It is too

early to generate any meaningful

statistics on conversion rate due to the

time lag between application and

completion in many instances.

Recognising that an impediment to

sustained progress is the fact that many

senior managers of large organizations

have not taken up the accreditation.

However, we see these people as being

the ‘torchbearers’ to set an example to

those who work for them. In response

to this we have introduced a Fast-Track

Accreditation at the CPCostE level

aimed at these individuals with sustain-

ed experience in these senior positions.

A pilot of four people has been very

successful, and a further pilot for

another six is being planned.

There has been some interest shown

of late in Company Accreditation,

mainly from the Aerospace and

Defence sector, but nothing confirmed

to date. It is recognised that the process

must be simplified and its cost reduced

to attract more interest. We are curr-

ently in discussion with BAE Systems

on what might be an appropriate

process to re-accredit their Gold Award,

which is due to expire this year.

Following on from last year’s

decision by the Board to consider

licensing of the ECostE and RCostE

awards to Company Accredited

Members, we are currently in dis-

cussion with BAE Systems, and the

Project Control Institute on how such

licensing might operate.

There has been renewed interest in

Course Accreditation and a pilot is to

be arranged with Cranfield University.

The proposed framework was mooted

two years ago.

Alan Jones

IET CollaborationThe IET-ACostE Project Controls

Technical & Professional Network

(The Project Controls Network) is a

jointly operated community between

The Association of Cost Engineers and

the Institution of Engineering and

Technology.

Its members are a distinct grouping

of practitioners with responsibility, at

all levels, for the prediction, planning

and control of resources and cost, for

activities that involve engineering,

manufacturing and construction.

Activities include:

• networking sessions

• technical events

• interactive online discussion forums

• technical conferences and seminars

What members get from joining:

• Free membership to the Network

• Active involvement in our Networks

• Access the global project control

community resources, papers, ideas

and discussions with their peers

• Participate in topical, informative

and interesting activities

The ICMS (International

Construction Measurement

Standards)

Established in June 2015, when

professional bodies from around the

world met at the IMF (International

Monetary Fund) in Washington, DC, to

launch a major initiative, which seeks

to create international standards in

construction measurement, represent-

ing professionals in over 100 countries.

The ICMS has the support of the IMF,

World Bank and the EU.

The Project Controls Network

(together with ACostE) is a founding

member of the ICMS Coalition Board,

and supports the work to create

International Standards.

The International Construction

Measurement Standards (ICMS)

Coalition are pleased to publish the

final version of the ICMS standard.

Organizations from around the world

have joined together to create a new,

universal system that, for the first time,

enables global comparison of building

and civil engineering construction

project costs, on a like-for-like basis

between countries. The launch marks

the culmination of two years’

collaboration between the Coalition

and 27 experts on the Standards Setting

Committee.

The recently issued ICMS Standard,

can be accessed at:

https://icmscblog.files.wordpress.com/

2017/07/icms_standard_200717_jf.pdf

Activities for the current year

The Project Controls Network contin-

ues to provide events in London,

Midlands, and Glasgow. This year we

have also included Sheffield, and will

continue to explore other locations in

the UK:

• 28 September 2017: Change

Management in the 21st Century,

presentation, to be held in Sheffield

• 23 October 2017: Acting Effectively

with Social Complexity and

Uncertainty, presentation, to be held at

the IET Savoy Place, London

• 15 November 2017 Prestigious

Lecture by Cranfield, on Redefining

the Role of Cost Engineering, to be

held at IET Savoy Place, London

• January/February 2018: Event in the

Midlands, details will be announced

later

• March/April 2018: Risk

Management presentation by Tony

Reid in Glasgow.

ACostE Members of the Project

Controls Network Committee

Roger Batten

Alan Barltrop

Alec Ray

Alec Ray, ChairmanIET/ACostE Project ControlsTechnical and Professional NetworkEmail: [email protected]

annual report annual report

Totals, since the commencement of Tiered Accreditation

The Association of Cost Engineers Ltd, Lea House, Middlewich Road, Sandbach, Cheshire CW11 1XL

Registered No. England 73770

Your route to professional status via ACostE

Project Control Professional November 2017 23

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Project Control Professional November 2017 2524 Project Control Professional November 2017

Technical abstractsTechnical abstracts – briefparticulars of the contents

of journals received byACostE and available

for loan from the Sandbach office

CIVIL ENGINEERING SURVEYORPublished by the Chartered Institution of

Civil Engineering Surveyors

July/August 2017

Main articles include:

To be or not to be … an expert witness –

Dr Chris Pamplin, Editor, UK Registerof Expert Witnesses. Dr Chris Pamplin

on the benefits and practicalities of

being an expert witness.

Monitoring Dover sea wall – Tareq

Khodabacksh, Senceive. How wireless

monitoring aided emergency remedial

works on Dover’s railway.

September 2017

Surveying ‘lost`WW1 tunnels on

Salisbury Plain – Jim Allen, Partner,

Cundall. Hidden tunnels, UXO and a

Neolithic cow carcass – surveying for

the British Army on Salisbury Plain.

Credit where it’s due? – Research and

development tax relief – Gemma Davies,

R&D Tax Professional, Creditax, on the

benefits of R&D tax credits. Could your

business benefit?

ENGINEERING & TECHNOLOGYPublished by The Institution of

Engineering & Technology

Vol. 12, Issue 7/8, August/September

2017

The Graphic – HMS Queen Elizabeth

sea trials. HMS Queen Elizabeth,

Britain’s biggest ever warship, is

conducting sea trials ahead of her

commissioning in 2018. The £3.5bn

vessel is the world’s largest aircraft

carrier by displacement outside of the

United States.

Photo essay: Extremely old skyscrapers

– Rebecca Northfield. People have been

building high-rise architecture for

centuries.While you can’t compare these

early ‘skyscrapers` to their modern

counterparts, such as the world’s tallest

multi-storey, the Burj Khalifa (which

stands 828m high), shows that the desire

to dominate the skyline goes back a long

way.

Castles built on sand – Chris Edwards.

Battered by wind and waves above the

ocean’s surface, offshore wind

foundations can’t take chances on what

lies on the seabed.

THE CHEMICAL ENGINEERPublished by the Institute of Chemical

Engineers

Issue 913/14 – July/August 2017

Mega Management – The challenges of

managing interfaces and integration at a

complex, world-scale refinery and

petrochemicals project – Zainab B.T.

Kayat, Mohamad Nasir & Bijay Kumar

– Group Technical Authority, Petronas;

Process Engineering Head, PRPC; &

Refinery Process Manager, PRPC.

Regular readers will be familiar with

PETRONAS` progress in developing

and building its RAPID project, a huge,

new, integrated refinery and

petrochemical complex in Pengerang,

Malaysia.

Adding Value to Gold. Scotland’s first

ever commercial goldmine proves that

precious metals can be worth more than

their weight in gold. Richard Gray,

Scotland CEO, speaks to Neil Clark.

Helmsdale, 1830: the harbourmaster

watched what he previously thought was

impossible. In front of his eyes, rock is

‘pulverised and put into conical

crucibles which are then put into a

furnace, and by some chemical process,

the gold falls down in a molten state into

the short conical apex at the bottom of

the crucible and retains that shape after

cooling’.

Health & Safety: Diverse and Inclusive

– Mark McBride-Wright, Managing

Director, McBrideWright; Chair & Co-

Founder, InterEngineering. Employers

should know that robust D&I initiatives

will lead to better H&S.

Issue 915 – September 2017

CCS: Carbon Capture and Strategy –

Helen Tunnicliffe goes on safari in

Norway to learn about a government-

backed scheme to set up a full-chain,

full-scale CCS project.

Better by Design – Quality by design

must be viewed as an opportunity, not as

a regulatory burden – Christoph Herwig,

Chair of EFCE Working Party on QBD

& Head of Biochemical Engineering

Dept. Tu Wien, et al. Simply increasing

the amount of testing on a product will

not improve its quality. Quality must be

built or designed in before production.

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

IAN PETER HODGES – 6744 – MEMBERConsultant Estimator – CE Associates Ltd,Kent

HARRY STEPHEN – 6761 – MEMBERCost & Planning Engineer – MassuteraEngineering SDN BHD, Negara BruneiDarussalam

AMBER LILY BILVERSTONE – 6762 –ASSOCIATEApprentice Estimator, AC BaconEngineering Ltd, Norwich

JAEYEON KIM – 6763 – MEMBEREstimation & Proposal Engineer, DaelimIndustrial Co Ltd, Republic of Korea

PUSSELLA HEWAGE PRIYADARSHANACHAMARA KUMARA – 6764 –MEMBERCost Control Engineer/Quantity Surveyor,Urbacon Trading and Contracting, Qatar

SHONA ANN ADCOCK – 6765 –GRADUATECost Analysis, AWE, Aldermaston

NICOLA JANE BAWTREE – 6766 –MEMBERSenior Cost Engineer, AWE, Aldermaston

PETER JOHN ALLINSON – 6767 – MEMBERConsultant Contract & CommercialManager, EEA Management LTD,Middlesbrough

NICOLA SOLECKI – 6768 – MEMBERSenior Cost Engineer, AWE, Aldermaston

GEETHA KAUNASINGHE – 6769 –MEMBERSenior Estimator, Faithful & Gould,London

HOWARD PHILIP ROLAND MALTBY – 6770– MEMBERPrincipal Cost Control Enginner, DE&S,Manchester

VERONICA JANE ANN WILSON – 6771 –MEMBER

Project Controls Manager, Cost Assurance& Analysis Service, Aldermaston

YAZID ALLAOUI – 6772 – GRADUATECost Control Engineer, AssociationBP/Statoil, Algeria

LILI ZHOU – 6773 – ASSOCIATEAssistant Estimator, Mott MacDonald,London

SCOTT JOHN ROBERT DONALDSON –6774 – MEMBERSenior Consultant Quantum, SystechInternational, London

CHEW LING TAN – 6775 – MEMBERQuantity Surveyor, Wai Fong ConstructionPTE Ltd, Singapore

MICHAEL EYESON – 6776 – ASSOCIATECost Engineer

VIJAYA PRAKASH DUPPATI – 6777 –FELLOWSenior Manager – Project Management,Samsung Heavy Industries, South Korea

KEITH JENKINSON – 6778 – MEMBERSenior Quantity Surveyor, SoilEngineering Geoservices LTD, Leeds

ANDREW LUCAS – 6779 – MEMBERQuantity Surveyor, George Morrison ELPLtd, Blackpool

MASADI LYDIA MODIBA – 6780 –GRADUATEAssistant Quantity Surveyor, MottMacDonald, Cambridge

RACHEL ANNE HANSON – 6781 –MEMBERSenior Cost Engineer, AWE Plc,Aldermaston

ABHISHEK PRADHAN – 6782 – MEMBERSenior Estimating & Risk Engineer,Technip Fmc, London

SAM CROCKFORD – 6783 – GRADUATE

news & events news & events

Project Cost Engineer, AWE Plc,Aldermaston

JONATHAN GREENFIELD – 6784 –MEMBERSenior Cost Engineer, Bazalgette TunnelLtd, London

CARL OSEI ASIBEY – 6785 – MEMBERSenior Cost Estimator, Mott MacDonald,Reading

NINA MARIE WATKEYS – 6786 –GRADUATECost Analyst, AWE Plc, Aldermaston

JAY RICE – 6787 – GRADUATECost Engineer, AWE Plc, Aldermaston

ZOË HEELEY – 6788 – MemberEstimator, Mott MacDonald, Birmingham

REZAUL BARI LITON – 6789 – GRADUATECost Forecaster, MoD CAAS, Bristol

REINSTATED

ROBERT HARRIS – 5331 – MEMBERValue Engineering Specialist, Rolls-Royce,Bristol

UPGRADED

SIMON LESLIE ROW – 6706 – MEMBERCost Engineer, Magnox Ltd, Oxford

DAVID DON – 6605 – FELLOWCost Engineering Programme & SectionLeader on Procurement of MaritimeProjects/Programmes

DANIEL CHARLES BERNARD O’BRIEN –6712 – MEMBERSenior Cost Engineer, Cavendish Nuclear,Irlam

PAUL NORTON – 5510 – FELLOWHead of Project Delivery & ProjectControls, Viridor, Taunton

Cutting-edge costmodel softwarelaunched at DSEIQinetiQ and PRICE Systems have

joined forces and launched their

cutting-edge cost model software at

Defence and Security Equipment

International (DSEI), London, in

September.

The QinetiQ Family of Advanced

Cost Estimating Tools (True FACET)

software, part of the PRICE Cost

Analytics framework, is the result of a

12-month internal research and dev-

elopment project.

True FACET provides cost fore-

casting applications early in a project’s

life cycle, including analysis of

alternatives, independent cost esti-

mating and balance of investments.

The PRICE Systems Cost Analytics

framework is a powerful implemen-

tation of predictive cost analytics

encompassing a suite of proven pro-

cesses, automation software and pre-

dictive models.

The framework is said to be unique in

its ability to host other predictive

models, such as QinetiQ’s FACET

models.

Dale Shermon, QinetiQ Fellow/

Managing Consultant, Cost and Risk,

said: ‘True FACET complements the

subsystem level of a project in their

estimates.’

The QinetiQ Family of Advanced

Cost Estimating Tools is a suite of over

50 models capable of generating

whole-life costs at the earliest stage in a

project’s life, when key decisions need

to be made against requirements and

costs.

PRICE Systems provides a cost

management solution based on a suite

of powerful cost estimation and

existing PRICE Systems models and

gives the TruePlanning community

through-life parametric estimating

capability in a single, easy to use, cost

modelling framework.’

Anthony A. DeMarco, President,

PRICE Systems, commented: ‘The

implementation of True FACET into

the PRICE Systems Cost Analytics

framework provides added value to

customers who can now focus on the

system level, in addition to the

analytics tools used globally by

governments and commercial organ-

izations to provide trusted baseline

estimates for programme budgeting,

RFP response, cost management,

affordability engineering and to track

the movement of those costs through

the life of a programme.

Email your news to the Editor: [email protected]

Page 14: PROFESSIONALProject Control November 2017Front cover Huangshan Mountain Village in China has won an AZ Award of Merit (Residential Architecture Multi-Unit category) in AZURE magazine’s

Project Control Professional November 2017 27

diary of eventsJULYAssociation of Cost EngineersThursday 5th– 2.00 pmCouncil MeetingOffices of Mott MacDonald, London

ACostE Southern RegionEvening Walking Tour in LondonDetails to be confirmed

OCTOBERAssociation of Cost EngineersThursday 4th– 2.00 pmCouncil MeetingOffices of ACostE, Sandbach

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

DECEMBERAssociation of Cost EngineersThursday 6th– 2.00 pmCouncil MeetingOffices of Mott MacDonald, London

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

NOVEMBERAssociation of Cost EngineersThursday 2nd – 2.00 pmCouncil MeetingAGM– 5.00 pmOffices of Mott MacDonald, 10 Fleet Place, London EC4M 7RB

IET/ACostE Project Controls NetworkWednesday 15th – 6.00 pmPrestige LectureIET, Savoy Place, London WC2 0BL

Project Controls ExpoThursday 16th – all dayEmirates Arsenal Stadium, LondonN5 1BU

ICEC Region 2 (Europe and the NearEast)Friday 17th –10.00 amAnnual MeetingOffices of Mott MacDonald, 10 Fleet Place, London EC4M 7RB

ACostE Southern RegionTechnical MeetingDetails to be confirmed

JANUARY Association of Cost EngineersThursday 4th – 2.00 pmCouncil MeetingOffices of Mott MacDonald, London

MARCHAssociation of Cost EngineersThursday 1st – 2.00 pmCouncil MeetingOffices of Mott MacDonald, London

MAYAssociation of Cost EngineersThursday 3rd – 2.00 pmCouncil MeetingOffices of Mott MacDonald, London

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

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

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

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

Alan Jones – Accreditation ChairmanS. ForthR. RobinsonJ. StudmanF. Houghton

HONORARY VICE PRESIDENTR. Roy

CO-OPTED MEMBERSS.J. Allen – Southern Region ChairmanR.M. Batten – Engineering ChairmanP. Clewes – CPD ChairmanA. DaileyJ. Dyson – Engineering Manufacturing Chairman

For your current information theCouncil are actively engaged in thefollowing for the Association:

Administration, Finance, Admissions,Regions, Cost Engineering, Planning,Engineering Registration, IT andWebsite, Certification, EngineeringManufacture, Legal and Commercial,Liaison with external bodies,Publications, Commercial Contract,Benchmarking, Life-Cycle Costing, Risk & Opportunity Management,Bibliography, ICEC, QCFs, CostControl/Management, Building for theFuture, Fellowship.

If you, as a Member of the Association,wish to contribute or liaise with aCouncil Member on any of the abovesubjects, please do so initially throughour head office staff, who will provideyou with the necessary contact.

A. Godhawale – Marketing ChairmanM. JasperA. Jones – Accreditation & Certification Chairman

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

D. Shermon – SCAF RepresentativeP. Snowden – BAE Company RepresentativeR. Whiting – South West Regional Chairman

ELECTED MEMBERSD. MillichampP. Thompson

HEAD OFFICE STAFFMrs V. Tattersall – ACostE/TASC AdministratorMrs H. Jackson – ACostE/TASC FinanceSophie Jackson – ACostE/Accreditation Administrator

Many of us will have had a fake

email claiming to be either

from PayPal, a bank or

HMRC. These are probably the most

common current phishing scams and

should be treated as such. Lately,

however, there have been sent out spam

emails in the name of The International

Federation of Surveyors (FIG) – but not

from any FIG email address. FIG are

sorry about this, but unfortunately, it is

almost impossible to prevent this kind

of fraud. It is a reflection of the times

that we always have to be on the

lookout for fake emails, maybe with

impersonal greetings and links to

dodgy websites, and treat them

accordingly.

See Lian Ong, Chair of FIG

Commission 10, has served as Chair of

the International ICMS Coalition

Standards Setting Committee. Their

effort has resulted in a successful ICMS

standard that was launched in July

2017. This standard is a universal

system that enables the global com-

parison of construction costs. ACostE

and ICEC are members of this

coalition.

This year’s ICEC Region 2 (Europe

and the Near East) meeting is being

hosted by the Association and being

held in London on Friday 17 November

2017. This is at the end of the week of

the IET/ACostE Project Controls

Network Prestige Lecture and the 2017

Project Controls Expo which are all

added attractions for our international

delegates. In addition to the Region 2

association delegates T.T. Cheung

(ICEC Chairman), Alexia Nalewaik

(ICEC Immediate Past Chairman) and

Peter Smith (ICEC Secretary General)

are expected to attend.

The Call for Papers is out for the FIG

Congress 2018. This Congress is being

organized by FIG and the Turkish

Chamber of Survey and Cadaster

Engineers (CSCE) and is being held in

Instanbul, Turkey, from Sunday 6 to

Thursday 11 May. 2018 The theme for

this four-year Congress is ‘Embracing

our smart world where the continents

connect: embracing the geospacial

maturity of societies’ and finds its

meaning in the joint effort for the

‘Geospacial Transformation of the

World’ and is aligned with the defi-

nition of the geospacial maturity of

societies. The deadlines are: for Peer

Review Papers: 1 October (full paper)

and Normal Papers 15 November

(abstract).

ICEC encourages the conduct and

promotion of regional and worldwide

congresses, meetings, forums and

seminars.

The 2018 11th ICEC World Congress

(the 25th International Cost Engin-

eering 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 26th International Cost Engin-

eering 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

26 Project Control Professional November 2017

See also

www.acoste.org.uk

‘Events’

Page 15: PROFESSIONALProject Control November 2017Front cover Huangshan Mountain Village in China has won an AZ Award of Merit (Residential Architecture Multi-Unit category) in AZURE magazine’s