Due Diligence Due Diligence

Hazards Fester whilst Precautions Boil

One of the most interesting aspects of the precautionary approach to safety risk is that innovation is encouraged, whilst with the hazard based approach using tolerable or acceptable risk levels, innovation falters and festers.

The reason is simple. Having demonstrated that an acceptable target level of risk or safety has been achieved, annual safety reviews become a chest beating exercise to show why the previous analysis was numerically in error, and that, as a consequence, more needs to be done. If this can’t be demonstrated, then the review becomes a repeat of prior work, which on the 5th or 6th iteration becomes quite meaningless and completely alienating to the workforce.

On the other hand the precautionary approach always tests for what else can be done. It keeps testing and changing and innovating. It looks for the application of new technology and work methods to improve things. It engages those at risk and keeps the safety message on the boil. It reinforces the fact that safety precautions are there for a single purpose – to save those around you from death and maiming.

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Racing Pigeon Airport Airspace Flight Controls

One of the more interesting presentations at the recent (5th and 6th November) Australian Aviation Wildlife Hazard Group’s conference was regarding concerns about racing pigeons and the desirability of keeping pigeon racing away from airports.

An aircraft arriving at Brisbane airport had struck of flock of pigeons. They were only discovered to be racing pigeons when a metal foot ring, which each bird wears for identification, was found lodged in the turbine runner causing extensive engine damage. Further investigation revealed upwards of 2,000 pigeons were involved in the race, only 200 of which flocked across the airport. The race itself included a more or less straight line course through the airport.

Richard Robinson attended the conference as a speaker on the second day and presented a paper on Legal Due Diligence and Wildlife Hazard Management. He prepared the above (preliminary) illustrative single line threat-barrier diagram to explain many of the points made during the conference.

The issue here is that the value of (possible) precautions needs to be assessed in the context of all of the precautions, not just the ones over which a particular single party has control, even though these are the only ones for which each respective party will be held accountable.

The difference between the hazard based approach and the precautionary approach with regards to airports is summarised in the Hazard and Risk Review completed by R2A for the EIS for the proposed Western Sydney Airport. It is quite clear that a designer, owner and operator of an airport needs to comply with the WHS legislation. The R2A report is available here:

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Safety in Design - A Due Diligence Perspective

Due diligence is a legal concept.  From the Concise Australian Legal Dictionary, due diligence is, a minimum standard of behaviour involving a system which provides against contravention of relevant regulatory provisions and adequate supervision ensuring that the system is properly carried out. The concept of due diligence has been captured in Corporations law, Environmental Law and now the model Work Health and Safety legislation.In an engineering and technological context due diligence is often construed to just mean compliance.  This is not the case.Due diligence is an aspect of moral philosophy, that is how the world ought to be and how humanity ought to behave to achieve it.  Often, this is along the lines that one should treat others as you would like to be treated by them.Due diligence for safety in design purposes uses the principles behind the judgments of the courts and applies them pre-event to ensure sound decision making. That is, reverse engineering of judicial decisions as shown above.How this manifests itself is that sometimes bad things happen and Courts and Royal Commissions question the design and design process with the advantage of hindsight to see what could have been in place, if it had been in place would have stopped the bad thing / accident from happening. Outcomes from such investigations are then fed back to see if the parties involved in the design were diligent.Safety due diligence is all about showing pre-event that the operation is safe. This means that when safety is being considered in the design process, all of the people that could be affected by the design need to be taken into account and the potential hazards to which they are exposed, over the entire lifecycle.From a safety due diligence aspect, all reasonable practicable precautions need to be in place applying the hierarchy of controls.

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Education Education

Precautionary Principle vs Precautionary Approach: What's the Difference?

One of the more interesting philosophical issues arising from the introduction of the model WHS legislation is the question of whether the precautionary principle incorporated in environmental legislation is congruent with the precautionary approach of the model WHS legislation.The precautionary principle is typically articulated as: If there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation[1], with due diligence being recognised as a defence in the Victorian Act (Section 66B).The words in Australian legislation are derived from the 1992 Rio Declaration. This formulation is usually recognised as being ultimately derived from the 1980s German environmental policy. The origin of the principle is generally ascribed to the German notion of Vorsorgeprinzip, literally, the principle of foresight and planning[2].The WHS legislation adopts a precautionary approach. It basically requires that all possible practicable precautions for a particular safety issue be identified, and then those that are considered reasonable in the circumstances are to be adopted. In a very real sense is develops the principle of reciprocity as articulated by Lord Atkin[3] in Donoghue vs Stevenson following the Christian articulation, quote: The rule that you are to love your neighbour becomes in law you must not injure your neighbour; and the lawyer's question "Who is my neighbour?" receives a restricted reply. You must take reasonable care to avoid acts or omissions which you can reasonably foresee would be likely to injure your neighbor. Interestingly, in describing what constitutes a due diligence defence under the WHS act, Barry Sherriff and Michael Tooma[4] favourably quote a case from the Land and Environment Court in NSW, suggesting that due diligence as a defence under WHS law parallels due diligence as a defence under environmental legislation.Does this mean that the two precautionary approaches, despite having quite divergent developmental paths have converged?Tentatively, the answer seems to be ‘Yes’. The common element appears to be the concern with uncertainty stemming from the potential limitations of scientific knowledge to describe comprehensively and predict accurately threats to human safety, and the environment.What does this mean? At the least is means that due diligence as a defence against things that can go wrong in Australia is on the up and up.


 [1] Victorian Environment Protection Act 1970.
No. 8056 of 1970
Version incorporating amendments as at 1 September 2007. Version No. 161.[2] Jacqueline Peel (2005). The Precautionary Principle in Practice. Environmental Decision Making and Scientific Uncertainty. The Federation Press.[3] Donoghue v. Stevenson (1932). See http://www.bailii.org/uk/cases/UKHL/1932/100.html[4] Barry Sherriff and Michael Tooma (2010). Understanding the Model Work Health and Safety Act. See p 43. State Pollution Control Commission v RV Kelly (1991).

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Risk vs Due Diligence: Why a Finnish community lobbied for a backyard reactor

I was recently part of a panel discussion on electrical energy security and the role of nuclear energy in Australia for the Electrical Energy Society of Australia.The panel consisted of five industry experts covering topics on energy security, nuclear energy, and risk and policy determination. A question and answer session followed the presentations.The opening address was by Senator Sean Edwards (Liberal Senator for South Australia) in light of the South Australian government’s decision on 8th February 2015, to establish a Royal Commission into the life cycle of nuclear fuel.My presentation titled 'Risk vs Due Diligence: Why a Finnish Community lobbied for a backyard reactor' was a personal insight into the way the Finns have established and embraced the nuclear industry over the last 40 years. It also explains why communities now put their hand up for new nuclear facilities.Finns do not discuss the level of risk of the nuclear facilities. They show it is safe by demonstrating that all reasonable practicable precautions are in place. Safety is not compromised for on-time and to budget delivery of new nuclear power facilities. For example, the Olkiluoto 3 nuclear power unit is 9 years behind schedule as a result of some safety concerns. There is a robust and stringent governance framework that does not allow short cuts to compromise safety.The presentations were filmed and can be viewed here.

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Risk Management Standard Squabble

An interesting article in the European Commercial Risk Europe titled "Hopkin calls for end to risk management standard squabble" discusses the squabble between the use of ISO 31000 and the COSO ERM Cube shown below.

COSO ERM Cube

Essentially the point being made is that the failure to adopt a single approach creates confusion and loss of traction in the market place.

From R2A’s perspective, this confusion was inevitable. The attempt to make market risk and safety risk operate under a single risk management approach was always a nonsense as has become increasingly obvious.

For example, the idea that ‘risk appetite’ can be applied to high consequence, low likelihood safety issues is simply irrational, and in breach of the model WHS legislation. This matter is being discussed in the paper being presented at the AMPI conference above. With regard to the pilotage of ships in and out of Sydney Harbour and Port Botany, the use of ISO 31000 is specifically rejected in favour of the precautionary approach required by the WHS legislation.

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What is Due Diligence Engineering (part 2)

A previous blog noted that due diligence engineering is the reverse engineering of the decisions of our courts.  The overall context to this observation is worth exploring.

The diagram below represents a view of the parliamentary structure that is the Commonwealth of Australia within a 19th century philosophical framework.

Essentially the parliamentary process is a method of implementing moral philosophical thought via the medium of legislation and regulation.  Of course the difficulty is that predicting the way of the world and managing it in advance is stupendously difficult.  For example, simply trying to make the workplace ‘safe’ is a huge undertaking, when all the types of workplaces and environmental circumstances are taken into account. It’s simply not credible that the parliaments and regulators can predict the future so well that they ‘get it right’, all of the time.

This is where due diligence engineering comes in.  By watching the outcomes of the courts, both in their interpretation of legislation and regulation, and the common law assessment of ‘fairness’, engineers can align the observed laws of nature with the expressed laws of man.  This is especially important in an advanced industrial society where the outcomes of human technological activity can have such huge upsides and calamitous downsides.

This means that in the event that it all goes ‘pear shaped’ recriminations are minimised and the need for apology is eliminated.  (It is illogical to say sorry, when the best that should have been done, was done).

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Client and Colleagues Event Details 2015

Gaye and I are pleased to host the next R2A client and colleague event on 10th February 2015. We will be launching our 10th edition text at the event as well as outlining the outlook for 2015 in light of recent publications such as the safety case guidelines.The 10th edition will include a new chapter on Sustainability Due Diligence as well as an expanded section on Project Due Diligence and Safety Due Diligence.Event DetailsDate: 10th of February 2015Time:  3pm-5pmRestaurant:The MillUpstairs 71 Hardware Lane Melbourne 3001 http://www.themillrestaurant.com.au/RSVP by 6th February 2015Please join us to celebrate the new R2A text and welcome in the New Year. Look forward to seeing you there.

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2014 The Year in Review

It’s hard to believe that 2014 is coming to a close and 2015 is almost here.  As part of our end of year wrap up, here are some of the highlights that we would like to share with you.

The year started with drinks and canapes to launch the updated version of the 9th edition of the R2A text, Risk & Reliability: Engineering Due Diligence.  The event was well attended by industry colleagues and provided an overview of the general state of affairs in industry.

Richard and I will host a similar event on 10th February 2015 to launch the 10th edition of the text. The 10th edition will include a new chapter on Sustainability Due Diligence as well as expansion of our Project Due Diligence and Safety Due Diligence chapters.

We would love to see you there so pencil the date into your diaries.

Richard and I continued to work with the Risk Engineering Society to develop the third edition of the Safety Case Guideline in 2014 which was officially launched at the 2014 Engineers Australia Convention in Melbourne in November.  The guideline considers how a safety case argument can be used as a tool to positively demonstrate safety due diligence consistent with the requirements of the model WHS legislation.

We were privileged to work with many clients throughout the year.  Here are a few of the interesting projects completed during the year.

INTERESTING PROJECTS

Project Due Diligence Process, Port of Melbourne Corporation. A project due diligence process was developed for Gates 2 and 4 of all PoMC projects.  This was then applied to two projects which were written up as case studies.

Monash Medical Centre Power Supply Operations Due Diligence Review, Waterman AHW.  The process tested for the catastrophic, low likelihood events (outliers) before it optimised for operational availability.

Safety Due Diligence Review.  An assessment of the health and safety risks associated with the taxi and hire car industry in Victoria was completed.

High Energy Assets Due Diligence Review, Melbourne Water.  A safety due diligence review was completed on Melbourne Water’s high energy assets especially in relation to the high and low voltage upgrade options at Eastern Treatment Plant’s Influent Pumping Station (IPS).

Z class tram life extension review.  Public Transport Victoria and Yarra Trams.  A due diligence review was completed for the Z3 Class Tram fleets for a 15 year life extension period to ensure all credible critical issues had been identified and preliminary cost estimates developed.

Port Jackson and Port Botany Pilotage SMS Review.  Being on the bridge of a cruise ship on a fine day coming out of Sydney Harbour is a joy to envied.  The case study of this review has been included in the 10th edition of the R2A text.

E class trams project due diligence review.  Public Transport Victoria. R2A continue to be the independent due diligence advisors for the procurement of the 50 new low floor trams for the Melbourne tram system.  A case study was developed for presentation at the Engineers Australia Mastering Complex Projects conference in Melbourne and is included in the 10th edition of the R2A text.

CONFERENCES

Richard presented at a number of conferences and seminars in 2014 and has availability for similar opportunities in 2015. Drop Richard a line if you have an event coming up.

  • Construction Risk Management Summit in Melbourne
  • CORE 2014 in Adelaide
  • Statewide Mutual Risk Management Conference in Sydney
  • EA NSW Regional Convention in Wollongong
  • Electrical Maintenance and Safety National Forum in Brisbane
  • Society if Fire Protection Engineers Conference on the Gold Coast
  • Mastering Complex Projects Conference in Melbourne

MEDIA

R2A were featured in a number of publications in 2014:

  • Near Enough Not Safe Enough (Engineers Australia Magazine. Safety feature article. January 2014)
  • Engineers Australia Safety Case Guidelines due to be released (Sourceable. January 2014.
  • Operations Due Diligence (Australian Journal of Multi-Disciplinary Engineering Vol 11 No.1)
  • Tough times ahead for the Construction Sector (Sourceable. April 2014)
  • Rise of the Precautionary Approach (Engineers Australia Magazine. Executive Engineer feature. May 2014)

EDUCATION

From an education perspective Richard delivered numerous public and in house courses on Engineering Due Diligence as well as continuing to deliver the Swinburne post-graduate unit Introduction to Risk & Due Diligence.

The 2-day joint R2A/EEA engineering due diligence workshop was very successful and will continue in 2015. This workshop is aimed at aspiring directors and senior managers.

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Project Due Diligence

Each year, the R2A Board reviews the R2A practice, what it is and how it achieves.  The Board notes that the directors always feel that what they and the practice do ‘makes a difference’, not just to our clients but to the overall way business is conducted in Australia.

Each year, the R2A Board reviews the R2A practice, what it is and how it achieves.  The Board notes that the directors always feel that what they and the practice do ‘makes a difference’, not just to our clients but to the overall way business is conducted in Australia.In doing so this year, the board has noticed some interesting correlations.  The greatest part of the R2A practice over the last 10 years has been in project due diligence.  Any project to which the R2A process has been applied has been a success.  They have come in on time and budget, and to specification.  These include the procurement of Class E trams and X’trapolis trains, Eastlink, Tugan Bypass, the Marina Coastal Expressway and many others.The directors believe that this is not necessarily only due to the power of the R2A project due diligence process. It is most likely to be due to the quality of our clients. Careful customers rarely make dumb mistakes.  Adding a third party like R2A to a project review is ensuing a further prudent precaution on top of what is an already robust process.But as a result of investigations into failed projects, and listening to discussions regarding the reasons for various project blowouts and failures at project management forums during the year, another, more alarming correlation is appearing. It seems that major projects that manage risks exclusively using the formal process described in ISO 31000, the Risk Management standard, are the ones most likely to fail.Whilst the R2A practice has always understood that the Risk Management Standard of itself is unable to positively demonstrate due diligence with regard to big, rare (low likelihood – high consequence) events, R2A did not believe that the standard of itself would be the mechanism of failure, but this now appears to be the emerging pattern.The R2A directors, Gaye Francis and Richard Robinson, are presenting on Project Due Diligence with a focus on the procurement and delivery of Class E Trams, at the Mastering Complex Projects stream at the Engineers Australia Convention in Melbourne on 26th November 2014.  For further details see: http://www.convention2014.org.au/conferences-and-events/mcp-conference/day-2-program.

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Implications of the model WHS legislation post the Royal Commission into the Home Insulation Program

The consequences of the WHS legislation on electrical safety is quite startling, but not yet realised.  The legislation requires that risks to health and safety should be eliminated, so far as is reasonably practicable. 

For instance, a bane of electrical regulators is the home handyman working in a roof space and fiddling with the 240V conductors.  The deaths arising from the home insulation Royal Commission also spring to mind.

The consequences of the WHS legislation on electrical safety is quite startling, but not yet realised.  The legislation requires that risks to health and safety should be eliminated, so far as is reasonably practicable.For instance, a bane of electrical regulators is the home handyman working in a roof space and fiddling with the 240V conductors.  The deaths arising from the home insulation Royal Commission also spring to mind.Many of us have been replacing our lights with energy efficient 12 V LEDs. And whilst it may be unreasonable to retrospectively replace the 240V wiring in the roof spaces with extra low voltage (ELV) conductors for existing structures, it is obviously quite achievable for a new dwelling.  If all the wiring is a 12 or 24 V, the possibility of being electrocuted in a roof space is pretty much eliminated, which is the whole point of the legislation.So in the event of a death that would have been prevented with ELV wiring in a dwelling constructed after commencement of the model WHS act, the public prosecutor presumably has a duty to prosecute any officer of a PCBU (person conducting a business or undertaking) that facilitated the fatal 240V installation.  This would include officers of firms of builders, engineers, electricians, architects and building surveyors at the very least.

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What is Engineering Due Diligence?

Richard was recently featured in an Engineering Online (EOL) video and answered 5 questions in two minutes on the topic of Engineering Due Diligence.EOL is a new Online Learning Centre recently launched by Engineering Education Australia (EEA) to support the professional development of engineering related professionals across all disciplines. Registration is free for members of Engineers Australia.

Richard was recently featured in an Engineering Online (EOL) video and answered 5 questions in two minutes on the topic of Engineering Due Diligence.

EOL is a new Online Learning Centre recently launched by Engineering Education Australia (EEA) to support the professional development of engineering related professionals across all disciplines. Registration is free for members of Engineers Australia.

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WHS Disproportionality

The precautionary approach required by the model WHS act forbids, on pain of criminal imprisonment, the exclusive use of target levels of risk (tolerable or acceptable) as a method of establishing whether a situation or circumstance is safe.

Amongst other concerns, this is problematic for those involved in SIL allocation under IEC 61508.  The usual comment is; how else can it be done?  Actually, it’s quite straight forward. 

The precautionary approach required by the model WHS act forbids, on pain of criminal imprisonment, the exclusive use of target levels of risk (tolerable or acceptable) as a method of establishing whether a situation or circumstance is safe.Amongst other concerns, this is problematic for those involved in SIL allocation under IEC 61508.  The usual comment is; how else can it be done?  Actually, it’s quite straight forward. Disproportionality in safety results from the economist’s law of diminishing returns (the pain is not worth the gain) for precautionary effort based on the significance of the risk vs the effort required to reduce it.For example, if an initial precaution reduces the risk by 99%, the next precaution can only address the remaining 1% of the risk and so on.  This means that in terms of the balance of the significance of the risk vs the effort required to reduce it, the scales thump to the ‘lets not do anymore’ side very quickly for effective precautions. It is always hard to define this point in advance because it does depend on the actual circumstances of the issue of concern.  But when considering the cost effectiveness of precautions in the context of all those available (as well as those already in place), it is generally quite obvious where to draw the line.This has always been R2A’s understanding of the meaning of disproportionality as used in case law and now the model WHS act.

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Have you ever wondered ‘What is engineering due diligence’ and what is it that ‘R2A does’?

As due diligence engineers we often get asked what is engineering due diligence and what it is that we actually do at R2A. To be honest, this has been a really difficult question to answer.  Due diligence is a legal concept and often construed to only mean compliance in the engineering context which is not the case. Previously Richard has used throw away lines like ‘we align the laws of nature with the laws of man’  that is, ‘we make lawyers useful’. Although these are outcomes of what we do, they didn’t quite answer the question of ‘what engineering due diligence actually is’.

As due diligence engineers we often get asked what is engineering due diligence and what it is that we actually do at R2A. To be honest, this has been a really difficult question to answer.  Due diligence is a legal concept and often construed to only mean compliance in the engineering context which is not the case. Previously Richard has used throw away lines like ‘we align the laws of nature with the laws of man’  that is, ‘we make lawyers useful’. Although these are outcomes of what we do, they didn’t quite answer the question of ‘what engineering due diligence actually is’.

So, after much thought, here is our latest attempt of explaining what engineering due diligence is.

R2A explanation – What is engineering due diligence?

Engineering due diligence uses the principles behind the judgments of the courts and applies them pre-event to ensure sound organisational decision-making. The primary purpose of engineering due diligence is to facilitate safe and efficient operations. It also provides confidence to all relevant parties.  It perhaps represents a form of reverse engineering of ‘the decisions of the courts’.

In the event of an incident, the due diligence process should satisfy the courts.  As a legal concept and it represents an aspect of moral philosophy, that is, how the world ought to be and how humanity should behave.  This is along the lines that one should treat others as you would like to be treated by them (the reciprocity principle).

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The role and responsibilities of an Expert Witness

Arising from a recent expert witness commission, the legal counsel directed R2A’s attention to Makita (Australia) Pty Ltd v Sprowles [2001} NSWCA 305 (14 September 2001), which provides an excellent review of the role and responsibility of an expert witness, at least in NSW.

Arising from a recent expert witness commission, the legal counsel directed R2A’s attention to Makita (Australia) Pty Ltd v Sprowles [2001} NSWCA 305 (14 September 2001), which provides an excellent review of the role and responsibility of an expert witness, at least in NSW.The case cites many authorities and outlines the various responsibilities of each. For example, (at 59) it indicates that for the professors report to be useful, it is necessary for it to comply with the prime duty of experts in giving opinion evidence, that is, to furnish the trier of fact with criteria enabling evaluation of the validity of the expert’s conclusions.This is alternatively stated in a number of different places and ways, for example (at 60); Courts cannot be expected to act upon opinions the basis of which is unexplained.  And again (at 69); Before a court can assess the value of an opinion it must know the facts upon which it is based. If the expert has been misinformed about the facts or has taken irrelevant facts into consideration or has omitted to consider the relevant ones, the opinion will be valueless.  In our judgement, counsel calling an expert should in examination in chief ask his witness to state the facts upon which his opinion is based.  It is wrong to leave the other side to elicit the facts by cross-examination.In keeping with what constitutes engineering due diligence in the article above, it remains a source of frustration to R2A that legal decisions are so opaque to non-lawyers that it requires legal counsel to direct R2A to the best decisions to provide insight in to the workings of our courts.  From R2A’s perspective, judgements should ideally be available in plain English on searchable databases so that the information is readily available to all. Apart from making the life of due diligence engineers easier, it would also enhance the value of the work of the courts to the society they serve.Case web reference:http://www.austlii.edu.au/au/cases/nsw/NSWCA/2001/305.htm

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Operations Due Diligence

As risk and due diligence engineers, R2A has the opportunity to work on a diverse range of projects.  Interestingly we are currently undertaking two operations due diligence reviews for two very different applications.  The first is a review for the power supply at the Monash Medical Centre and the second is the supply of Class A recycled water from the Eastern Treatment Plant.

Both studies are utilising our Operations Due Diligence methodology.  This process tests for the catastrophic, low likelihood outliers before it optimises for operational availability. It does this by testing the system as a whole in relation to management concerns, applying a top-down systems analysis approach that focuses analysis effort where it is needed.  This approach means many lower-level sub-systems don’t need to be analysed in detail, as further analysis is not performed if information to answer the question is produced. It also aligns results with management’s concerns, often with far less effort and more clarity than a full bottom-up analysis.

Traditionally, risk analysis techniques are not normally considered as part of an availability analysis, which is usually focussed on system functional design and reliability and maintainability of system elements. From an organisational viewpoint, however, all causes of system failure are important, including further factors such as external effects (for example, materials supply interruptions, picketing, power failures, bushfires, floods, staff epidemic) and accidents (for example, building fires, materials handling, vehicle collisions, operator errors). These factors are external to the traditional scope of availability analyses but can have a disproportionate effect, as the damaged caused can be severe, leading to much longer downtimes than simple failures.

Operations Due Diligence includes these factors, assessing the criticality and risk of such threats from the start of the analysis and consists of four steps:

  1. Context (or boundary) vulnerability assessment
  2. Common mode (zonal) vulnerability assessment
  3. Functional availability modelling
  4. Options review, investment payback analysis and recommendations.

Further information on our Operations Due Diligence methodology can be found in our Operations Due Diligence whitepaper.

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Tough Times Ahead for Constructers?

Richard attended and presented at the recent Construction Risk Management Summit in Melbourne on 1stand 2nd April. It had a diverse range of speakers and messages.

Possibly the most common message from academic speakers was that the majority of projects do not come in on time or budget. In fact very many had major cost blowouts approaching 100%. There were a number of perceived reasons why this occurs.

Richard attended and presented at the recent Construction Risk Management Summit in Melbourne on 1st and 2nd April. It had a diverse range of speakers and messages.

Possibly the most common message from academic speakers was that the majority of projects do not come in on time or budget. In fact very many had major cost blowouts approaching 100%. There were a number of perceived reasons why this occurs.

The first, identified by the majority of speakers, focused on upfront design failures. Typically 80% of the project cost is established at this phase.  So if this is wrong, such expense becomes a necessary, often quality ensued outcome. The solution to this issue was to get designers to focus on the long term operational performance, say at least 10 years operation, rather than just on practical completion.

The second related to competitive pressures which were increasing. Lowest tender bidding meant that corporate survival required taking a chance on contingencies for risks that might never eventuate. If the construction market continues to shrink, more and more tenderers will be bidding for fewer and fewer jobs and greater collective risk taking will result. One speaker even warned of an increasing likelihood of unethical behaviour in such circumstances.

Richard's presentation can be viewed on our conference page.

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Sustainability Risk Management: (Legal) Due Diligence Obligations

Richard Robinson has been invited by Professor Tom Romberg to give a keynote address to the Engineers Australia Southern Highlands & Tablelands Regional Group for the Sydney Division Regional Convention 17-19 October 2014 in Bowral on the theme "Sustainability Risk Management".

Sustainability Risk Management focuses on environmental and social responsibility risks.  US Professor Dan R Anderson observes that traditionally the costs associated with sustainability risk were externalised to the environment and general society.  But increasingly they are being internalised to business.

Richard Robinson has been invited by Professor Tom Romberg to give a keynote address to the Engineers Australia Southern Highlands & Tablelands Regional Group for the Sydney Division Regional Convention 17-19 October 2014 in Bowral on the theme "Sustainability Risk Management".

Sustainability Risk Management focuses on environmental and social responsibility risks.  US Professor Dan R Anderson observes that traditionally the costs associated with sustainability risk were externalised to the environment and general society.  But increasingly they are being internalised to business.

So presumably, if the Aral Sea and Lake Chad are taken as examples, the benefits associated with the diversion of the rivers for irrigation should have been balanced out against (or at least taken into consideration) with the environmental and social costs of the lakes drying up. As much could be said of Australia over allocating water from the Murray-Darling basins. The tendency is to do that which provides returns within a commercial investment period (3 to 10 years?) especially at a state level, and ignores the larger collective issues and what might happen when a big rare event occurs, for example, a 10 year drought.

The question of what decision making process should be applied in such circumstances is often raised.  R2A, as due diligence engineers have always used the Australian High Court’s case law for safety matters.  The question of whether or not this could be applied to Sustainability Risk Management is an interesting possibility and the subject of the address.  Whilst lawyers always insert caveats regarding the interpretation of legislation, there seems to be a general agreement that negligence cases can be instructive on what might constitute "reasonably practicable" steps to prevent harm.

The indications to date are encouraging.  It has most certainly been applied in the question of the management of electrical assets for bushfires. The Powerline Bushfire Safety Taskforce’s report into the Black Saturday fires used this approach per advice from R2A.  An example of an expert opinion by Richard Robinson in New Zealand using common law due diligence as a defence against negligence in an environmental legislative context is available at New Zealand EPA.   This appears to have been well received by relevant legal counsel at the time although the opinion notes that it was not endeavouring to create a new test under the Resource Management Act 1991.

The essential aspect of due diligence as a defence against negligence is that foreseeable harm to neighbours should be appropriately managed.  If the concept of neighbours is extended to include all future neighbours then the possibility a sustainability due diligence argument arises. That is, provided a proposed project or plan is not prohibitively harmful to both present and all future neighbours, and all reasonable practicable precautions have been provided to protect all these neighbours for all reasonably foreseeable issues, then the project ought to proceed. This would be a positive demonstration of sustainability due diligence.

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Apto PPE Launch

Apto PPE is a new entrant into the Personal Protective Equipment (PPE) wear marketplace.  We produce fit for purpose women’s work wear that is safe, comfortable and stylish.  Our workwear range can be worn from the boardroom to site with confidence.

We produce fit for purpose PPE clothing for women only, including a maternity range. Clothing that is purpose designed for safety, comfort and practicality, to wear on the job in industries including construction, engineering, factory work and mining.

Apto PPE is a new entrant into the Personal Protective Equipment (PPE) wear marketplace.  We produce fit for purpose women’s work wear that is safe, comfortable and stylish.  Our workwear range can be worn from the boardroom to site with confidence.

We produce fit for purpose PPE clothing for women only, including a maternity range. Clothing that is purpose designed for safety, comfort and practicality, to wear on the job in industries including construction, engineering, factory work and mining.

Co-founded by Michelle Shi-Verdaasdonk, Laurice Temple and myself representing R2A’s interest, the journey for Apto has been an exciting and interesting experience so far.

Fit for purpose women’s workwear was an initiative developed by Engineers Australia’s Women in Engineering National Committee after identifying a gap in the industry. Michelle and I were part of the core team in establishing and executing the initial stages.  In 2010, a working group was set up to develop prototype garments which were showcased at the gala dinner during the 15th International Conference of Women Engineers and Scientists (ICWES15) in Adelaide in July 2010.  Following an overwhelming response the committee joined with John Holland to complete a pilot.

With permission and the good wishes of Women in Engineering, Apto PPE was founded and officially launched on International Women’s Day 2012 to take this initiative to its full potential and fill the gap in industry.

During 2012 we worked in partnership with our Australian designer Linh Thai from the Designer’s Assistant to develop three shirts and two pant styles as part of our Signature and Maternity ranges. These were then tested on site and refined to ensure optimum safety, comfort and style.

Two babies (two mother’s) and a successful battle with breast cancer later, we are excited and proud to launch our Signature and Maternity women’s work wear range on Wednesday 5th March as part of International Women’s Day celebrations.

If you are interested in attending our launch or would like further information about Apto, please email me.

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2014 R2A 9th Edition Text Update and Outlook

In February 2014, we hosted an event to launch the 2014 Update of the R2A text, which was well received. 

With many changes to various legislation in Australia, R2A has concluded that the text will be updated annually at least.

Matters of interest in the 9th edition text update include:

In February 2014, we hosted an event to launch the 2014 Update of the R2A text, which was well received.

With many changes to various legislation in Australia, R2A has concluded that the text will be updated annually at least.

Matters of interest in the 9th edition text update include:

  • The introduction of the Rail Safety National Law which is complimentary but subordinate to the model WHS legislation.
  • The expected approval in the new year of the Engineers Australia Safety Case Guideline (3 Edition). This specifically rejects the Risk Management Standard (AS 31000) as being able to positively demonstrate due diligence for high consequence – low frequency events.
  • Why SFAIRP (so far as is reasonably practicable) can never equal ALARP (as low as reasonably practicable) legally.
  • The logical limitations of Monte Carlo simulation for demonstrating project due diligence.

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