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Appendix C – Submission No. 1 from the Australian Agency for International Development

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PROPOSED FITOUT OF NEW LEASED PREMISES FOR AUSAID AT LONDON CIRCUIT, CITY, ACT

STATEMENT OF EVIDENCE TO THE PARLIAMENTARY STANDING

COMMITTEE ON PUBLIC WORKS

July 2005

1 Membership of the Committee

Chair Hon Judi Moylan MP
Deputy Chair Mr Brendan O’Connor MP
Members Mr Harry Jenkins MP
  Mr Barry Wake!in MP
  Mr Bernie Ripoll MP
  Senator the Hon Judith Troeth
  Senator Alan Ferguson
  Senator Dana Wortley
Secretariat Ms Vivienne Courto

2 List of Abbreviations

ABOR Australian Building Greenhouse Rating
ACT Australian Capital Territory
AusAID Australian Agency for International Development
GFA Gross Floor Area
NCA National Capital Authority
NLA Net Lettable Area
SEDA Sustainable Energy Development Authority


3 Background Information

3.1 Australian Agency for International Development

3.1.1 The Australian Agency for International Development (AusAID) is an Australian Government agency within the Department of Foreign Affairs and Trade.

3.1.2 AusAID manages the Australian Government’s official overseas aid programme. The objective of the aid programme is to advance Australia’s national interest by helping developing countries reduce poverty and achieve sustainable development.

3.1.3 AusAID provides policy advice and support to the Minister for Foreign Affairs and his Parliamentary Secretary on development issues and plans and coordinates poverty reduction activities in partnership with developing countries.

3.1.4 AusAID’s head office is in Canberra at 62 Northboume Avenue, Civic. Agency representatives are located in 25 Australian diplomatic missions overseas.

3.2 Need

3.2.1 AusAIDs existing lease expires on 31st July 2007. AusAID has been housed in the current building since 1987. The most recent fitout was nine years ago and so the fitout is past its economic life. AusAID has examined three options for office accommodation from July 2007. These are:

3.2.2 AusAID evaluated these three options and has determined the third of these options to be the most cost effective over the long term. It would enable better security and operational efficiencies. AusAID has recently entered a precommitment lease with a developer to fitout a new commercial building at Block 20 Section 10, City, known as London 11.

3.2.3 AusAID currently occupies 9,556m2 net lettable area (NLA) at 62 Northboume Avenue, Civic. The space is slightly surplus to needs. Due to its aging infrastructure, the current building does not meet standards for Occupational Health and Safety, the Disability Discrimination Act 1992 or the Building Code of Australia. The building design and age of the building services are not conducive to high environmental standards or energy efficiency and as the building ages higher maintenance costs can be expected.

3.2.4 In its current condition the building and fitout provide an inferior standard of technical services and amenity for staff, visitors, officials from developing country partners and others when compared with other Australian government departments in Canberra.

3.2.5 Design features of the existing building mean that the usable floor space efficiency ratio is lower than that of comparable modern buildings. The building has a U-shape floor plate and a central non-air conditioned glass atrium. The inflexible floor plate also imposes a constraint for accommodation of Agency task forces (such as responding to the Indian Ocean Tsunami), that are required to be housed with short notice from time to time.

3.2.6 The building’s physical characteristics do not comply with the security standards. Its design features inhibit the upgrading of security to meet government agency requirements to protect personnel and material. The basement car park is shared with non-government personnel and material. The walkway adjoining two streets operates through the centre of the building, at ground floor level, during business hours. The need to meet current stringent security requirements has had flow-on effects. For example, partitioning secure areas has meant that air conditioning flow balances have been affected as the building was designed as an open plan configuration. The lifts are frequently breaking down and often take several days to repair as spare parts are not readily available.

3.2.7 AusAID cannot achieve gains in cost efficiency in the running of the existing building without undertaking an extensive upgrade of the building services. This would involve considerable disruption of the workplace over an extended time period. In due course it would also be necessary to undertake an interior fitout upgrade, bringing further disruption.

3.2.8 Remaining in the current premises without extensive upgrading is not a viable option. AusAID conducted a detailed examination of alternative accommodation solutions. Option one was a 15 year lease extension to remain in the current building without a fitout. Option two was to remain in the current building with a 15 year lease extension and to carry out a partial refurbishment of building services (landlord) and full interior fitout (AusAID). Option three was for AusAID to fitout a suitable existing building or a new building.

3.3 Alternative site and accommodation identification

3.3.1 A thorough investigation of opportunities within the market place was achieved by an open tender process in 2004. Submissions were invited on the basis of refurbishment of the existing building, relocation to another existing building or relocation to a new development.

Option 1

3.3.2 The first option is for AusAID to remain in the existing Northbourne Ave building. This option has numerous shortcomings when compared to the Block 20 Section 10, City (London 11) site, in particular:

3.3.3 If AusAID were to remain at 62 Northbourne this would necessitate a substantial upgrade of the building services, such as lifts, which would still not meet current standards due to inherent design factors.

Option 2

3.3.4 The second option is to relocate to an existing building. The tender process conducted in 2004 failed to identify another suitable alternative which would meet AusAID’s central office accommodation requirements.

Option 3

3.3.5 The preferred option based on value for money is to move to a new building being developed at Block 20 Section 10, City, with a NLA of 9,000 m2. This entails AusAID committing on a sole tenancy basis to a net lease arrangement upon completion of the building. The lease will be on terms consistent with those agreed at the time of entering into the lease. AusAID will fund the cost of a customised fit-out.

3.3.6 This proposal provides several advantages. The new premises will provide staff and visitors with much higher levels of amenity. The relocation will enable AusAID to:

3.4 Outcomes

3.4.1 Fitout of a new commercial building located in the city will enable AusAID to relocate in June 2007 to coincide with expiration of its existing lease for 62 Northbourne Avenue. AusAID has entered a pre-lease commitment with a private developer over an area of approximately 9,000m2 NLA. This is located at Block 20 Section 10, City, known as London 11. The initial lease term is 15 years with options to renew.

3.4.2 The new building is in the early stages of development. Construction is scheduled to commence in January 2006 and the main works would be completed in March 2007.

3.4.3 AusAID has reached agreement with the developer for an integrated fitout which will ensure the interior will be designed specifically to meet AusAID’s needs.

3.4.4 The open-plate floor space will offer maximum flexibility for housing of staff and staff amenities, enabling flexible reconfiguration should future needs change.

3,4.5 A significant proportion of AusAID’s existing furniture, fittings and equipment will transfer to the new building.

3.4.6 The new building will comply with the Building Code of Australia and considerable operational cost efficiencies are anticipated through more efficient heating, cooling and lighting systems, which will also meet modern environmental standards.

3.4.7 The developer London (11) Pty Ltd is well-known and established with a track record of successfully completing other property developments in the Canberra region.

3.4.8 Negotiations with the developer included penalty clauses to protect AusAID against any delays to the building completion. If the completion date is not met, the developer will indemnify AusAID for any extra rental and other costs incurred due to the delay prior to relocation. The existing landlord is agreeable for occupancy to continue beyond the end of the lease term in July 2007.

3.4.9 Under the terms of the lease for 62 Northbourne Ave. AusAID is required, at the end of the occupancy, to make good the premises to their condition at the commencement of the lease, or to make monetary compensation.

3.5 Proposal Details

3.5.1 The building will be located at Block 20 Section 10, City which is on London Circuit and near the corner of Allara Street. This is in close proximity to other government departments and is in near proximity to city shopping centres and amenities.

3.5.2 Block 20 Section 10, City, known as London 11, will provide AusAID with approximately 9,000m2 of NLA over six floors. The large floor plates will provide AusAID with flexibility and superior efficiencies.

3.5.3 The building will be A-grade quality with leading edge design and superior finishes. The development will include many environmental initiatives such as:

3.5.4 Provision for 120 car parking spaces will be accommodated via two secure basement sub floors. Parking would be available on the following basis:

3.5.5 Staff amenities will be located throughout the building.

3.5.6 Site/location plans are attached at Annexure A. Floor plans are indicative only and are attached at Annexure B.

3.5.7 AusAID will lease the new office accommodation for an initial term of 15 years (with options to renew) and will undertake the interior fitout. Occupation of the new building by June 2007 is feasible given the progress already achieved in works approval from the NCA and the proposed schedule for site works.

3.5.8 Building specifications will be developed in consultation with the building architects and other relevant experts to ensure all essential AusAID requirements are met.

3.5.9 Fitout design and specification will meet the Disability and Discrimination Act 1992 both in respect of access for clients and staff including wheel chair access to the building and office areas, door widths and height, lift arrangements, parking, toilets and access to counter facilities.

3.6 Environmental Issues

3.6.1 The proposed building works will comply with the Australian Government guidelines relating to energy efficient buildings and will be assessed against Australian Building Greenhouse Rating (ABGR) system.

3.6.2 Building orientation will allow sun penetration, access to daylight to supplement artificial lighting and heat gain or loss throughout the building envelope. The thermal mass of the building will be utilised, where possible to provide support to the heating system. Sun shading systems will be utilised to support the airconditioning systems.

3.6.3 The building will conform to the requirements of the Environmental Protection Biodiversity Conservation Amendment Act 2003

3.7 Organisations Consulted

A formal consultative approach has been adopted to provide expert advice in relation to various aspects of the project. The following agencies and businesses have been consulted to date:

3.7.2 The Australian Greenhouse Office will be consulted at an appropriate stage in the development.

4 Technical Information

4.1 Location

4.1.1 The AusAID fitout will be part of the Block 20 Section 10, City development. The site is bounded by London Circuit and Allara Street, City, ACT.

4.2 Scope

4.2.1 AusAID is looking to lease the office accommodation for 15 years and will be undertaking an integrated office fitout.

4.2.2 The works include:

4.2.3 Architectural designed office accommodation including:

4.2.4 Space allowances for individual workpoints are allocated at 6.9m2 which includes space for storage, circulation and common areas. These space allowances are calculated on a number of factors including work space efficiencies.

4.2.5 The building will provide AusAID with an environment that has the ability and capacity to meet the anticipated changing organisational needs of AusAID. This will be achieved through:

4.2.6 Preliminary floor plans are included but have not been finalised at this time. See Annexure B.

4.3 Site Selection and Description

4.3.1 In mid-2004 the developer signed a 99-year Crown Lease over the London Circuit site. The lease held by London (11) Pty Ltd commenced in 2004 and the developer is permitted to develop up to an area of 9,000 m2 NLA.

4.3.2 Block 20 Section 10, City, known as London 11, will provide AusAID with a NLA of approximately 9,000m2 over 6 floors (ground to level 5 inclusive). The large square floor plates will provide AusAID with flexibility and superior building services efficiency.

4.3.3 The location of the site was decided based on key criteria to the operational needs of AusAID:

4.3.4 An independent risk assessment for the preferred option rated it low risk.

4.3.5 Advice received indicates that AusAID is best served by adopting the London Circuit option as it contains the least number of risks for AusAID and the lesser financial impost.

4.4 Zoning and Approvals


4.4.1 AusAID has verified through the NCA that London (11) Pty Ltd has obtained the necessary zoning and approvals from the relevant planning authorities.

4.4.2 Fit-out of the building will be integrated with construction and managed by AusAID, using a specialist project manager and fit-out architect service. Provisions have been made in the Contingency Reserve for the cost of the fit-out in 2006-07. Agreement from Parliament to proceed with the fitout of the building is sought from the Public Works Committee. Approval from other relevant authorities will be sought as required, including:

4.5 Land Acquisition

4.5.1 The site is crown land leased to London (11) Pty Ltd. AusAID would occupy the building under an ACT commercial lease arrangement with the developers.

4.6 Codes and Standards

4.6.1 AusAID will ensure all relevant codes and standards are included in design and building briefs including the National Code of Practice for the Building Industry developed following the Royal Commission into the Australian Building Industry.

4.7 Planning and design concepts

4.7.1 The building fabric will be composed of non-transparent facade elements utilising maintenance free materials that will provide a sound and appropriate weatherproof external envelope. The building at London Circuit is designed to meet best practice environmental performance now and into the future. The building envelope features include:

4.7.2 A 10.2m by 8.4m column grid with minimal freestanding columns is planned for the building. The 1620m2 floor plates are easily divisible to suit the required fitout.

4.7.3 Advice from relevant security agencies will be sought and incorporated into the design concept. A security threat assessment will be conducted during the design stage and the building will match the outcomes of the assessment.

4.7.4 The design of the roof will comply with NCA requirements. Roof plant will be concealed and openings will be minimised.

4.7.5 Carpet tiles will be fitted to general office areas. High quality tiles or terrazzo will be fitted to the lobby area.

4.7.6 A minimum ceiling height of 2700mm will apply to office areas and 2400mm as a minimum to all other areas except toilet areas. Ceiling tiles will be 1200 X 600mm and of mineral fibre with a minimum acoustic absorption coefficient of 0.7 in the frequency range of 500-4000 H3.

4.7.7 General Engineering service installations will specifically address the following criteria:

4.7.8 Workpoints will be based on individual modular workstations that preserve views and enable natural light penetration into the building’s interior. Workstations more efficiently cater for the installation and operation of new technologies. They utilise the floor areas more effectively than fixed offices and will create opportunities for accommodating additional facilities such as open meeting areas and common spaces.

4.7.9 Mechanical Engineering Services will be based on the following principles:

4.7.10 Hydraulic Engineering Service requirements will include the following provisions:

4.8 Acoustics

4.8.1 The building will be designed to incorporate acoustic solutions for the management of the following:

4.8.2 Design criteria and building performance for ambient noise ratings shall be in accordance with the requirements and recommendations of A51055 Acoustics.

4.9 Flexibility

4.9.1 The December 2004 Indian Ocean Tsunami, highlighted the need for AusAID to have a building with a flexible fitout to enable the establishment of task forces at short notice and with minimum disruption to staff and normal operations.

4.9.2 It is proposed the London 11 premises will incorporate a 30 person meeting room with facilities to be used as a crisis centre.

4.9.3 The new premises will also include a dedicated video conferencing room.

4.9.4 The fitout will provide a flexible and adaptable environment able to cope with AusAlD’s changing needs. The use of flexible and modular materials and planning principles will allow for easy reconfiguration.

4.10 Energy Conservation measures

4.101 London 11’s high performance building structure and application of sustainable design principles will ensure a high energy rating throughout the building’s life cycle. The focus on A-grade services, innovative techniques and state-of-the-art technology will ensure reliable systems, low outgoings and optimum energy efficiency.

4.10.2 AusAID will seek the inclusion of a range of energy efficient measures in the building brief and fitout including:

4.10.3 To maximise the Ecologically Sustainable design impact of Block 20 Section 10, City, known as London 11, site the following have been included in project delivery:

4.11 Disability provisions

The design brief will detail a number of requirements for people with disabilities including:

4.12 Heritage Issues

4.12.1 An assessment was conducted and it was deemed there were no known Heritage issues

4.13 Childcare Facilities

4.13.1 It is not intended to provide childcare facilities within the building.

4.14 Fire protection and security

4.14.1 Fire protection and detection services for the building will include the following provisions:

4.14.2 The building fit-out will incorporate AusAID’s security requirements. AusAID will consult appropriate security experts with regard to the development of security requirements for the building including access, monitoring and materials storage.

4.15 Occupational Health and Safety

4.15.1 The AusAID project team will liaise closely with agency occupational health and safety officers and working groups to ensure the fitout design complies with the relevant codes. The project manager will ensure compliance with the OH&S Act and to assist AusAID to incorporate best practices into the fitout design.

4.15.2 Characteristics of the proposed work space will be:

4.16 Landscaping

4.16.1 Landscaping will comply with NCA requirements and will include:

4.17 Staff Consultation

4.17.1 AusAID will implement a set of communication strategies for internal and external consultation for the duration of the new accommodation project. The principal means for informal communication with staff will be via a dedicated intranet site. AusAID will also conduct formal consultation with managers and staff. This strategy will incorporate:

4.17.2 A staff consultative committee has been established which features a number of staff association members. Staff presentations have been given to all central office branches within AusAID and updates are posted on AusAID’s intranet site.

4.17.3 As the project progresses AusAID plans to set aside a dedicated project room which will display:

4.18 Staff facilities

4.18.1 Facilities provided for staff as part of the fitout include:

4.19 Employment

4.19.1 Construction and fitout will impact positively on the local economy with employment in the private sector.

4.20 Cost

4.20.1 The estimated fitout cost, based on consultation with Quantity Surveyor, WT Partnership, is $9.5m excluding GST. An estimated breakdown is as follows:

Item Estimated Cost ($)
Workstations/Loose Furniture 1,676,000
Joinery/Fittings/Compactus Units 600,000
Partitions, Ceilings, Doors 573,000
Services & Infrastructure 3,388,000
Preliminaries 1,457,000
Project Management and Consultant Fees 730,000
Contingencies 713,000
Escalation to completion (3.5%) 363,000
Sub-total 9,500,000
GST 950,000
TOTAL 10,450,000

4.21 Value for Money

4.21.1 AusAID has determined the proposed development to be a cost effective property solution

4.21.2 As AusAID will be the sole tenant of the Block 20 Section 10, City, known as London 11, there are also operational and financial advantages to be gained from incorporating AusAID’s special requirements into the base building structure.

4.22 Project Delivery system

4.22.1 An integrated fitout in conjunction with the building construction is proposed. A combined fitout architect design and project management team has been established under the control of a Steering Committee.

4.23 Construction Programme

4.23.1 A Steering Committee is responsible for overseeing the design, fitout and relocation process, including managing external consultants including the fitout project manager and design consultants.

4.23.2 Building construction is programmed to commence in January 2006 with fitout construction to commence in March 2007.

4.23.3 AusAID expects to occupy the building by June 2007.

4.24 Sketch Designs

4.24.1 The site plan is at Annexure A.

4.24.2 Building elevations and floor plans (in an early stage of development) are attached at Annexure B.

5 AnnexureA
5.1 Site Plan

6 Annexure B
6.1 View from London Circuit
6.2 South Elevation
6.3 Ground Floor Plan
6.4 Floor Plan

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