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Home / New Zealand

Weighing up risk is rewarding

NZ Herald
23 Feb, 2010 03:00 PM5 mins to read

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Vincent Baldwin says in engineering you get to specialise in what you like. Photo / Ted Baghurst

Vincent Baldwin says in engineering you get to specialise in what you like. Photo / Ted Baghurst

Cost engineers look at the big picture to manage the detail, writes David Maida

Engineers are usually in high demand but with the Government's infrastructure spend up, even more people will be needed for this wide-ranging and interesting career.

Vince Baldwin started as a civil engineer in Britain and is now a director at WT Partnership Infrastructure in Auckland after working on projects
in Malawi, Lesotho, Malaysia, Hong Kong, Dubai, Jamaica and India.

"I've experienced and enjoyed diverse cultures and conditions in several countries. I've had exposure to the various fields of civil engineering. As a contractor, I've got to see the structural side, transport, traffic, geotechnical, environmental and I've chosen my specialist field to be the cost side," Baldwin says.

As a cost engineer, Baldwin is the one who is charged with making sure that as a project progresses the costs don't get out of control.

He has been contracted to watch over a myriad of projects in New Zealand including rail, bridges, state highways, industrial subdivisions, residential subdivisions, structures, waste-water treatment, marine and waterfront redevelopment.

"You need to know how things are built. You need to understand the drawing side. So, the engineer does the designing but then you value-engineer that design. You try to ensure your contractor builds things for the right cost."

If costs start to escalate, Baldwin says you have to start to minimise any variations in the plan which aren't absolutely necessary. You can also look at your procuring process to make sure you're not paying more for materials than you should be.

"Sometimes, because of the way construction is, you get variations and changes, especially in civil engineering where there's a lot more risks in the ground. Designs can change and it's up to you to value and procure that work."

One of the skills of being a cost engineer is being able to look down the track and see any issues which might arise. Factoring in costs from the beginning keeps surprises from blowing out the budget.

"I guess I use my experience in the field having been on projects to look at the drawings, what the conditions are, what the design is and build into that the cost that I think it's going to come as an out-turn cost."

But just about every job has its quirks.

"Most projects have their difficulties. It's not like a factory where you press a button and something comes out the other end. There are lots of different issues that arise during construction."

Time and cost are always the main concerns for a cost engineer. Weather delays and ground conditions often threaten to throw a spanner into the works.

A good cost engineer has to understand what risks are associated with the project and the location. You're in charge of measuring and valuing everything needed so you can produce a robust estimate which accurately reflects the final cost.

"It's really labour, plant materials, subcontracts and also understanding the outputs - what a man and machine can achieve in the locality where the work is being done."

The technology available in various countries has a high impact on costs. In countries where manufacturing plants are not in use, a lot more has to be done by hand.

"There you have a lot higher labour cost and lower plant cost."

New Zealand is a lot more advanced than some Third World countries Baldwin has visited. But he says if you want to dig an underground tunnel in New Zealand you're still going to have to import a tunnel boring machine from another country.

"You're not going to find many companies that have those bits of kit simply because it's a smaller market."

Most countries are guilty of under-spending on infrastructure, Baldwin says, but that may be changing.

"I think people are beginning to realise that for development of a country to take place, you have to have First World infrastructure."

But in some poorer African countries Baldwin has worked in, such as Malawi and Lesotho, conditions are fairly basic.

"In Malawi we purchased equipment from Europe and Dubai and brought that in. In Lesotho we were based in a camp up in the mountains. We had to build roads to get the equipment there. There were no roads that could take the heavy equipment."

The project in Lesotho was Katse Dam - the highest dam in Africa, which flooded 45km of valleys. Knowing you've contributed to such a major accomplishment is one of the things which makes engineering such a fulfilling career. Baldwin also wanted to explore different cultures.

"I think part of the reason I decided to go overseas from the UK was to experience different cultures and different people. I have to say Malawians and the people in Lesotho were very friendly."

Baldwin says the local people in Africa were welcoming because they knew the foreign engineers were building something which would help their country. Infrastructure projects in Africa are not as controversial as other projects such as oil or mining.

Living conditions in Africa vary widely. In Malawi the engineering firm bought local houses but in Lesotho they had to get by in portacabins up in the mountains. Baldwin says he has also lived in Portacabins in India, six hours from civilisation, and says it can be challenging.

"It has its moments. That can be part of the test. But I think the reward is working on large infrastructure projects."

Another reward, Baldwin says, is the sheer variety of jobs available for engineers.

"In engineering, every project is different. You get a chance to specialise in what you like, what you enjoy most."

Contact David Maida at: www.DavidMaida.com

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