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| Backlog GPM | Backlog Gross Profit Margin - represents the expected gross profit margins to be earned from the balance of work to be completed under existing construction contracts. As the construction contracts are progressively completed, backlog profit margin declines. As new work is secured and contracts signed, backlog profit margin is replenished.
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| Backlog Revenue | Represents the balance of work to be completed under existing construction contracts. As the construction contracts are progressively completed, backlog revenue declines. As new work is secured and contracts signed, backlog revenue is replenished.
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| BER | Building the Education Revolution |
| BREEAM | The Building Research Establishment Environmental Assessment Method was launched in 1990 and has been formally adopted by the UK Government as the benchmark to measure the environmental performance of buildings.
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| CEMEA | Continental Europe, Middle East & Africa.
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| Construct only | A “risk” service offering where the contractor provides construction only services, design responsibility is not taken by the contractor. Construct only is usually bid competitively and a lump sum price provided.
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| Construction Management (CM) | A “fee” service offering involving management of the construction activities of a project on a fee basis. While risk is taken on the cost of the management, no risk is taken on the cost or time for construction.
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| Construction Management at Risk (CM@Risk) | A “risk” service offering where a fee is paid to undertake the procurement of services and trades required for the construction of the project. Once a high percentage of the total trade cost has been procured, risk is then taken on delivering the project for the agreed time and cost.
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Design & Construct
1 stage (D&C 1 stage) | A “risk” service offering where a preliminary design brief is completed for the project by the client. A lump sum or Guaranteed Maximum Price is then agreed for the completion of the project. Risk is taken to complete the project for the agreed price and schedule. This process is usually conducted in a competition with limited design documentation to provide a proposal for a guaranteed price and schedule.
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Design & Construct
2 stage (D&C 2 stage) | A “risk” service offering where a fee is paid to manage the design and to undertake the procurement of trades and services. Once this process has advanced sufficiently, either a lump sum or a Guaranteed Maximum Price is agreed to complete the work. Risk is taken to complete the project for the agreed price and schedule. The design development phase has enabled more documentation to be produced prior to the price and time being agreed with the client.
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| Development pipeline | Development projects that have not yet commenced, or been formally awarded, but where the company has been named as the preferred bidder or an exclusive agreement has been undertaken.
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| EMEA | Europe, Middle East & Africa.
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| Engineering Procurement Construction Management (EPCM) | A “fee” service offering where a fee is paid to undertake the engineering design and procurement of the trades and services required to construct the project. A further fee is then paid to manage the construction activities (similar to CM services above).
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| Green Star rating | Green Star is a national voluntary environmental rating system used by the Green Building Council of Australia to evaluate the environmental design and achievements of buildings. The following Star Ratings exist:
4 Star Green Star Certified Rating signifies ‘Best Practice’
5 Star Green Star Certified Rating signifies ‘Australian Excellence’
6 Star Green Star Certified Rating signifies ‘World Leadership’.
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| Gross Profit Margin | Represents total project revenue less direct project related costs such as payments to subcontractors and other costs incurred by Lend Lease's project management and construction business that are directly attributable to the project. It does not include the allocation of any general (or indirect) overheads. Operating profit before tax is determined by deducting indirect overheads from gross profit margin.
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| Guaranteed Maximum Price (GMP) | Represents an agreed contract value to perform the services required. Typically, actual costs of elements of these services are tracked and any savings to the agreed contract value are shared between the parties. Cost overruns beyond the contract value are the responsibility of the contractor.
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| HVAC | Heating, ventilation and air-conditioning.
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| LEED | The Leadership in Energy and Environmental Design (LEED) Green Building Rating System is a voluntary, consensus-based rating system in the United States for developing high performance, sustainable buildings. LEED addresses all building types and emphasises state-of-the-art strategies in five areas: sustainable site, development, water savings, energy efficiency, materials and resources selection, and indoor environmental quality.
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| Liquidated Damages (LDs) | The pre agreed damages payable by a party to the opposite party of the contract for the damages caused by its failure to complete construction by a date specified in the original agreement or by agreed amendment.
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| MEP | Mechanical, Electrical and Plumbing.
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| MNC | Multi-national corporation.
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| Multi-family | US term to describe any residential housing development which is not a single family home – typically high-rise residential apartments.
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| New Work Secured GPM | This measure represents the estimated Gross Profit Margin to be earned from construction contracts secured during the period. When formal contracts are signed, the New Work Secured becomes part of Backlog. New Work Secured was previously referred to as Sales.
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| Profit recognition | During project construction it is Lend Lease policy not to recognise profit on projects other than to cover overheads until the outcome of the contracts can be reliably determined and they are at least 50% complete. Losses are recognised in the period in which they is incurred.
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| Profitability ratio | EBITDA divided by Realised GPM.
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| Project Management (PM) | Agency / consultancy work that is performed for a fee. No subcontracting involved.
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| Realised GPM | Gross Profit Margin that has been earned, and reflected in the Lend Lease Profit & Loss account over a given period |