How does engineering create value?
This question is central to the philosophy of the firm and shapes how we serve our clients.
Our philosophy of value creation
At the heart of our firm is a unique, three-tiered Value Creation Framework that redefines engineering competency through the lens of value creation for our clients and the industry. Our hope is that by reframing our purpose as consulting engineers from excelling at 'how' to understanding the 'why', we elevate our value as leaders and trusted problem solvers.
This philosophy permeates every facet of our practice, from design conceptualisation and talent development to time management and professional fee calculations. It is even embedded in our logo. We are constantly challenging ourselves to elevate our thinking and generate more relevant, impactful, and higher-value solutions for our clients.
What is the value of engineering?
Our founder David Worsley has pondered this question for many years. Read on to learn the story behind the development of our Value Creation Framework.
Think for a moment about who we celebrate
Eighty years separated the passing of two Australian heroes buried in Melbourne's Brighton Cemetery: Sir John Monash, a pioneering civil engineer and Australian leader, and Shane Warne, arguably Australia’s greatest modern sportsman. Both were mourned by the nation. Yet, the shift in who society elevates: from an intellectual to a sporting icon, speaks volumes about how our values have evolved.
This isn't just a sentimental observation. Consider another measure: the financial value placed on engineering expertise. Thirty years ago, the fees for structural engineering on a commercial building project often exceeded 1% of the construction cost. Today, that figure is frequently less than half of that.
Interestingly, despite this apparent trend, a 2015 Engineers Australia survey revealed that the engineering profession remains highly trusted, ranking fifth overall. This contrast of significant public trust alongside a potentially diminishing perceived value raises a crucial question: what underlies this dynamic?
This occurs whilst the necessity for engineering solutions has never been greater. Australia faces a persistent skills shortage that has impacted construction and housing. Meanwhile the world navigates a complex, multi-generational transition toward a low-carbon and changing climate.
The problem with standard practice
A symptom of this trend makes itself apparent as the construction industry’s greatest challenge this decade: its comparatively poor productivity growth. The consequence is felt by both clients and consulting engineers alike.
Clients are feeling both the rising cost of capital and consultant fees . At the same time engineers are facing tighter margins and the commoditisation of their expertise. As the industry has matured over decades, and with generative AI now here, we have reached a point where solutions are interchangeable between consultants. Consultants themselves are often indistinguishable from one another. The result is the diminishing value of engineering.
Many factors contribute to this challenge. One lies within the engineering industry itself. Consulting engineers are trained to believe their purpose is to excel in the ‘how’ of engineering: knowledge of theory, application of standards and methodologies.
Consider the example of how we assess technical competency – often through levels like ‘Developing’, ‘Working’, ‘Practised’, and ‘Advanced’. These models, used to promote and train engineers, rely on subjective assessments of understanding and autonomy, without directly linking competency to the utility and value delivered to society. As Charlie Munger wisely noted, "Show me the incentive and I will show you the outcome."
A new approach: value is at the core
We instead believe the engineer’s purpose is an understanding of the ‘why’. This means we take a leadership role in the definition, analysis and resolution of society’s problems.
Drawing on this understanding, our founder, David Worsley, has developed a unique three-tiered value-based framework for evaluating technical skill. This framework assesses competency through the lens of value creation for both our clients and the broader industry.
The foundational level, Level 1, primarily addresses the question of ‘how’ and focuses on the application of standard industry practices. This represents the operational mode for many consulting engineers. The outcome is often the generation of commoditised solutions that could be readily interchanged between consultants and replicated by engineers with a few years of experience.
Higher levels of competency, Level 2 ‘Value Add’ and Level 3 ‘Expertise’, delve into the ‘why’ behind engineering activities. Decisions at these levels involve a critical assessment of whether and why specific engineering tasks should be undertaken, requiring a deeper understanding of the client's objectives and the broader context of the problem. This shift in focus fosters divergence in engineering solutions and unlocks the potential for significant value creation.
At Level 3, Level 1 and 2 activities are synthesised for maximise value creation. This may include new construction methodologies, or novel design solutions that are not yet in standards such as regenerative civil design being pioneered by our team. Thinking at this level is what will drive the industry forward and break that downward trend.
Engineers of all experience levels can operate at any value level. There is an expectation that those with more experience should spend a larger proportion of time operating and developing at higher levels. However even a fresh graduate can provide significant value if they can develop a new tool or method for an engineering solution using knowledge they acquired during their study.
What does it look like in practice?
Malop Street, Geelong green infrastructure schematic. Concept was developed between David Worsley and Outlines Landscape Architecture. Image courtesy of Outlines.
A common example in civil engineering involves onsite stormwater detention systems. The standard Level 1 approach typically applies industry guidelines to design a system meeting Council requirements, often involving underground tanks. However, a Level 2 analysis considers the broader context: the site's location within the catchment, adjacent developments, and relevant planning regulations. This deeper understanding has frequently revealed situations where detention storage is unnecessary or could even exacerbate flooding issues. By demonstrating this to water authorities, we have often facilitated more efficient and cost-effective solutions for our clients.
This value-driven philosophy permeates every facet of our practice, from design conceptualisation and talent development to time management and professional fee calculations. It is even embedded in our logo. This integrated approach cultivates a mindset within our team that encourages them to approach project work with a different perspective, fostering faster professional growth. We are constantly challenging ourselves to elevate our thinking and generate more relevant, impactful, and higher-value solutions for our clients.
Our fee structure reflects the level of strategic thinking and value we bring to each project, recognizing that more complex challenges require a deeper level of analysis and expertise.