Program 3.2: Overseas property

* Construction work to complete projects in Nairobi, Jakarta and Bangkok and the refurbishment of the Paris chancery are continuing on schedule. The requirements for the Kabul residential property were re-scoped over the course of the 2013–2014 reporting period and a revised project program is under development.

Overview

The Overseas Property Office (OPO) supports the department’s operations by providing a safe, secure and functional work environment within a portfolio of owned and leased domestic and overseas properties.

During the year, OPO conducted a substantial construction, fit-out and refurbishment program in the overseas estate, including ongoing construction of the new embassy complex in Jakarta and commencement of construction of a new chancery and head of mission residence in Bangkok.

We hosted an International Property Conference in March 2014 bringing together senior government property officials from The Netherlands, Canada, United Kingdom, New Zealand and the United States. Key outcomes included agreement to share information on available chancery space for sub-letting among like-minded governments and agreement to benchmark capital costs for construction activities.

In managing the Commonwealth’s overseas property estate, the department achieved a management expense ratio (MER) of 1.357 per cent, which is appropriate to the unique nature of the estate (MER refers to management expenses expressed as a proportion of the portfolio value).

Major construction projects

Overseas owned estate

The construction of a new chancery and residential complex in Jakarta remains on track to meet its scheduled practical completion date of August 2015 followed by the fit-out and furniture installation and occupancy in March 2016. The project received an Indonesian Safety Award in recognition of its commitment to site and worker safety.

To involve the local Indonesian community in the construction of the new embassy, OPO funded the Tembok Seni Australia art wall project. Forty-six large pictures drawn by Indonesian school children at Australia–Indonesia Institute-partnered BRIDGE schools are now displayed on the hoardings surrounding the construction site (see also 1.3). The site has attracted positive attention, particularly through social media.

The construction contract for the Bangkok project was awarded to Bouygues Thai and VSL Australia (BVSL) with on-site works commencing in February 2014. The project is due for completion in July 2016 with occupation expected in late 2016.

Ambassador to Jakarta, Greg Moriarty, with the winning contributor to the Tembok Seni Australia art wall project, South Jakarta, 25 February 2014. [DFAT]

Staff Profile

Bina Chandra

Director, Overseas Property Office, Canberra

I joined the department in 2007 as a specialist Project Manager in OPO. My background is in architecture and urban design, and I worked as a design and development professional in the building industry for almost 15 years.

Since joining the department, I have had the opportunity to manage many interesting and challenging projects around the world including in Kuala Lumpur, Dhaka, Islamabad, and Kabul.

My major project this year is managing the construction of the new Australian embassy complex in Bangkok. This a large high-profile project for one of Australia’s biggest overseas missions.

I find my role as a project manager both satisfying and challenging. It is satisfying because I am engaged with a project from conceptualisation through to the delivery and final completion, and challenging because I have to deliver results in disparate and testing environments. The most enjoyable aspect of project management is that it allows me to use my architectural training while broadening my understanding of the building industry through contact with the different architectural and building engineering consultants engaged on each project.

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The head of mission residence in Colombo was completed on schedule and within the approved budget in February 2014.

In March 2014 the Joint Parliamentary Standing Committee for Public Works approved construction of a secure chancery in Nairobi. The design contract for the chancery was awarded to Brisbane-based James Cubitt Architects.

The mid-life services refurbishment of the Australian embassy in Paris continued with completion scheduled for June 2015. Refurbishment works at the owned residential compound in Hanoi commenced during the year.

Leased estate

The new annex to the Australian high commission in Honiara, Solomon Islands, was officially opened in July 2013 by the former Minister for International Development. The annex provides accommodation for staff attached to the restructured bilateral aid program following the transition of the Regional Assistance Mission to the Solomon Islands in June 2013 (see 1.1(7)).

Construction of new office accommodation and facilities in Kabul were completed and occupied in May 2014. Work on the new chancery in Addis Abba was also completed and staff commenced operations from the permanent premises in June 2014. The fit-out of leased accommodation for the consulate-general in Chengdu continued with completion scheduled for October 2014.

Management of the overseas estate

We relied on the Portfolio Strategic Plan (PSP) to forecast major capital works and refurbishment programs for the overseas owned estate. In conjunction with our asset management plans, the PSP was also used to inform investment decisions and performance monitoring of all owned properties.

Outsourced property services

The department’s property services provider DTZ, delivered property management and tenant advisory services on leased and owned chanceries and head of mission residences, including annual inspections, technical assessments and advice on compliance and building safety. DTZ also managed procurement and contractor services for maintenance of the estate, and provided management and revenue collection, payment processing and IT, and reporting support services. DTZ’s work was carried out in accordance with Commonwealth procurement guidelines.

Satisfaction with DTZ’s and OPO’s performance was measured by an annual survey undertaken by posts in June 2014. The results show that OPO continued to deliver consistently high levels of service, with over 80 per cent of posts rating OPO’s performance as good or better. However, there was a decline in posts’ assessment of DTZ’s performance compared with the previous two years.

The contract with DTZ for the delivery of outsourced property services to both the overseas and domestic property portfolios expires in June 2016. In preparation for a re-tender process, OPO appointed Price Waterhouse Coopers to assess market capability for the delivery of property services and consult with peer organisations to determine the appropriate mix of services in future.

Workplace health and safety (WHS) compliance

Comprehensive WHS audits at 72 posts have now been undertaken to identify and mitigate possible risks to staff. Additional audits were carried out on an as required basis where specific hazards were identified and appropriate remediation plans were developed and implemented. The remaining 20 posts will be audited over the next two financial years.

We undertook a program of compliance audits and hazard identification, risk mitigation and remediation in the overseas estate at 72 posts to ensure the safety and welfare of staff, their families and visitors.

Outlook

OPO will maintain its strategic property planning capability through individual asset management plans (AMPs) for each of its properties and a Portfolio Strategic Plan (PSP). The PSP will recognise the department’s strategic priorities and pursue improved asset utilisation and cost management.

Enhanced AMPs, using industry benchmarks and ratings, will assist OPO to make effective short, medium and long term decisions regarding property investment and maintenance programs to ensure properties remain fit for purpose.

Establishing the new consulate-general in Houston and major refurbishment programs at the Washington and Port Moresby chanceries will be priorities.

We will analyse the responses from posts to the annual performance survey and take the necessary remedial action.