About the Project

While essentially a simple commercial office tower, 41 Exhibition Street will be a fundamental statement about the Institute and Australian architecture and will be exemplar in form, function and sustainability.

The project's inception dates back to 2006, when National Council commissioned consultants to prepare a detailed feasibility study for the site, encompassing a range of potential options for its future.

These options varied from renovation to relocation and were debated at length. In 2008, after extensive and rigorous consultation, National Council decided that the site would be redeveloped into a small office tower that would set the standards in Australian architecture.

The Institute held a two-stage design competition. The commission was awarded to Lyons with a concept that explored ideas about the hybrid public/commercial building, the engagement of the Institute with the public and creating a benchmark sustainability project.

Since the appointment, Lyons has been working closely on key sustainability concepts integral to the design, and has undertaken detailed Green Star assessments through the process. A 5 Green Star rating is proposed and will position the project among leading commercial building projects in Australia.

A primary objective was for the project to achieve 'carbon neutrality', which has included a detailed Total Carbon Assessment for the life cycle of the building. As we move into a more 'carbon centric' economy and industry there will be an increasing emphasis on the full carbon lifecycle of buildings (i.e. the carbon footprint over the life of the building) rather than design tools for the 'here and now'.

The Institute has had to weigh up a number of factors throughout the life of this project. One of the major considerations is, of course, the significant financial commitment required. The Institute has taken a step-by-step approach, looking carefully at financial and risk issues, and has recently confirmed that the project is feasible and supported by excellent pre-sales. The long term recurrent cost benefits flowing from energy efficiencies, and the Institute's very strong financial position also provide a good foundation.

These factors were among a number that National Council took into account at its recent meeting, where it gave approval for the project to proceed, and for the Institute to enter into:

  • a formal Guaranteed Maximum Price contract for the construction of the new building, subject to finance, final planning approval and review of the final contract conditions by the Project Control Group;
  • formal agreements, including related deeds of novation, with the architect and other key project consultants, and arrangements to obtain project finance up to an agreed limit from a bank or other approved financial institution.

Importantly, these approvals are subject to Institute management keeping National Executive regularly informed on progress and liaising with National Council for authorisation of the financial agreements with the proposed Bank.

The contractual arrangements for the project, which Council has approved in principle, represent another way in which the Institute intends to demonstrate a market-leading approach. The construction contract itself is a modified version of the Australian Standard contract for design and construct, which provides for novation of the architect and other consultants.
Critical modifications to the contract include:

  • Deferral of novation to a point after significant design decisions are agreed
  • For the architect and consultant team to have a direct line to report any non-agreed design changes back to the Institute
  • For the client, design team and contractor to work collaboratively through a form of integrated project delivery.

These modifications represent a model for other commercial development projects. Where this form of contract is the norm, often at the insistence of the financier, our model offers an alternative which supports the role of the architect and the design integrity of the project.
The Institute is in this for the long term. 41 Exhibition Street is an exemplar redevelopment that will lead the market by showing how a very small CBD site can be transformed to deliver a high quality, highly sustainable, innovative commercial building. It will be a centre for architecture in Victoria, both literally as the Chapter Headquarters, and symbolically.

Keeping in mind the commercial sensitivity of some details of the project, National Council at its recent meeting also committed to ensuring that members, staff and the public are kept regularly informed about the development through to its completion