Identified Root Causes of Damage to Opal Tower and ISO 55000 Standards

This article discusses the identified root causes of damage to Opal Tower and the key differences between a Strategic Asset Management Plan and an Asset Management Plan based on ISO 55000 standards.

Running head: ASSET MANAGEMENT
ASSET MANAGEMENT
Name of the Student
Name of the University
Author Note

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Question 1
Review the Final Report on Opal Tower Structural Damage Investigation dt. 19-Feb-2019.
Familiarise yourself with other relevant information on the incident available online / library.
1.1 Describe the identified root causes of damage to the Opal Tower as on date?
Opal Tower is a highrise residential complex which is located in the suburban area of Sydney
Olympic Park area in the state of New South Wales. The building consists of 392 apartments and rises up
to 34 floors above the ground level and 3 levels under the ground level. The completion of the building
project had been competed on August 2018 and residents were allowed to occupy their apartments. The
Opal Tower Sydney was a joint venture which was built by the real estate company Icon, developed by
Ecove and the design was contributed by Bates Smart Architects. Hardly had few months passed from
the date of its inauguration, that fault had been detected in the building and that had rendered the
residents of the building berserk. On 24th of December 2018, the residents could hear loud banging sound
and could see that cracks had developed on the body of the edifice and that had exposed the panellings.
The residents of the fourth and tbe tenth floors were worst affected by the tragedy. The residents who
were unaware of the real cause of the banging sound had thought that it was a bomb explosion. The
residents were evacuated immediately and were sheltered at a nearby Airbnb hotel facility and were once
again relocated back to their residences by 27th of December. On February, 2019, an investigation was
carried out at the behest of Honourable Mr. Anthony Roberts, Minister for Planning and Housing to find
out the causes behind the damage (Planning.nsw.gov.au 2019).
As per the Opal Tower Investigation Report of February 2019, five causes of the damage have
been identified, which are as follows:-
- Environmental:- The report has ruled out the possibility of environmental factors being
responsible for the damage caused to the building. As per the meteorological records collected
over the period of just few months prior to the damage incurred at the Opal Tower, and in
particular during the period exactly just before to and on 24th December 2018, there have been no
trace of any form of extremity or adversity in tbe weather conditions. The precipitation records
had however indicated some signs of significant downpours in the months which lead up to
Christmas, however they could not be regarded to be unusual or abnormal. Hence the
environmental factor was however not considered as an important cause leading to the damage
at the building (Planning.nsw.gov.au 2019).
- Poor Quality Building Construction Materials:- In the interim report that was published on 14
January 2018, it had been indicated that there were no evidences recorded in the document that
had been reviewed till that date that would indicate that the materials used in the construction
were inferior in quality or they did not meet the specifications that were required. However later
on with a thorough investigation it was found out that the materials used were indeed quite faulty
and that could be attributed to the damage incurred by the building. Possibilities such as the
concrete which was used in a hob beam and that might not have completed or reached the
specified 28 day strength was suspected later on carrying out further investigation
(Planning.nsw.gov.au 2019).
- Problem at the Foundation:- There were also problems found at the foundation of the Opal
Tower. The records that had been inspected had revealed that all the column footings used for
the construction of the Opal Tower structure had been founded on shale which ranged in between
low to medium strength. While, the, majority of the column footings that had been used in the
construction of the Opal Tower were of medium strength. The records and reports that had been
reviewed also indicated that the spread footings which were supposed to support the tower
core had not been inspected properly. The spread and column footings which were 40 in total
were the individual pad footings that provided support to the tower columns were inspected
thoroughly by a geotechnical engineer before the pouring of concrete mixture in order to allow
the formation of the footings. All the inspected footings had been certified by the geotechnical
engineer in charges as suitable for carrying a maximum allowable bearing pressure of 3.5
MPa. However the 2019 report suggests that the flaw could not have been at tbe foundation as
had the problem been in the foundation then the effect would have been felt in all the floors, and
not specifically on the 4th and the 10th floor (Planning.nsw.gov.au 2019).
- Construction errors:- The construction errors could be summed up under the following heads:-

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 Grouting errors- In the drawing that prepared the designing, the optimum grout coverage
was provided however in the actual construction the grouting was inadequate and had
been only partially fulfilled which could have possibly led to an abnormal load creation
causing the bursting of the hob beams due to stress. Only 50 to 70 percentage of the
width between the joints had been grouted properly (Planning.nsw.gov.au 2019).
 Inadequacies at the level 10:- First of all, the covering with the layer of concrete was
inadequate, especially as found at the hob beam spanning, columns C21 and C38, which
had created weak points in the building and had caused the layer of concrete to chip off
and the paneling to be exposed. The reinforcing steel nearby to the hob beam to the
connection of the column had also been found discontinued. At another place a dowel
bar connecting the hob beam and the panel at the 10th floor had also been found
discontinued (Planning.nsw.gov.au 2019).
 Incongruency between the panels and the concrete beam:- The concrete panels were
20mm thicker than they were supposed to be. The size of the reinforcing bars used
somewhere else was however found to be 8mm less thicker than the actual size
(Planning.nsw.gov.au 2019).
- Flaw at the Structural Design:- The flaw in the design of the building had been found at the 4 th
and the 10th floor of the building.
 At the 4th floor, it had been found that there had not been adequate bursting resistance of
the hob beam which was located just above the column C34.
 At the 10th floor, it had been found that there had not been adequate bursting resistance
of the hob beam which was located just at the connection points of the columns C21 and
C38 (Planning.nsw.gov.au 2019).
These have been the points wherein the damages to the structure had been witnessed.
1.2 From your analysis of literature on this event what could be the top three causes leading
to this event? Provide justification for your argument.
On the basis of the analysis of the literature, on a personal basis it could be said that the
three most important reasons for the damage to the Opal Tower could be, Poor Quality Building
Construction Materials, Construction errors and the Flaw at the Structural Design
(Planning.nsw.gov.au 2019).
- Although it had been indicated that in the interim report which was published on 14 January 2018
that there were no evidences recorded in the document that had been reviewed till that date that
would hint that the materials used in the construction were inferior in quality or they did not meet
the specifications that were required. However later in the report of the year 2019 it has been
found that the concrete which was used in a hob beam and that might not have completed or
reached the specified 28 day strength. Sydney has become a hot spot for the booming real estate
industry and that has attracted many construction projects which have made it essential to meet
the requirement of erecting the buildings within a short period of time and providing affordable
housing options to the people who wanted to live nearby to the city area naturally, the quality of
the materials, the method of the construction and the adherence to the safety measures had to be
forgone which had been the major cause behind the damage of the building
(Planning.nsw.gov.au 2019). The following two reasons are related to this particular point.
 Construction errors had partially been created by the usage of poor quality materials and
also due to inadequate usage of the materials with wrong specifications, naturally that
had caused the capacity of the edifice to bear the expected weight that it was originally
designed to bear and that had caused problems at several places where the paneling
had been exposed and the concrete had chipped off. In the drawing that prepared the
designing, the optimum grout coverage was provided however in the actual construction
the grouting was found to be inadequate and had been only partially fulfilled which could
have possibly led to an abnormal load creation causing the bursting of the hob beams
due to stress. Only 50 to 70 percentage of the width between the joints had been grouted
properly. Somewhere else on the damaged floor it had been found that there had been
inadequate concrete coverage and the specifications of the design had not been met, as
200 mm concrete bars were used instead of 180mm and 20mm panels instead of 28 mm
ones, naturally that had interfered with the weight bearing capacities of the building
(Planning.nsw.gov.au 2019).

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- The flaw at the Structural Design of the edifice is partially responsible as the original design and
the specifications specified had not been implemented and that had been the cause behind the
catastrophe. The arbitrary usage of the specifications of the materials used has been the cause
why the structural design had been rendered as flawed. Which means that the flaw of the
structure cannot be said with conviction as the original structure had been altered while
construction (Planning.nsw.gov.au 2019).
1.3 Discuss the uncertainties / contradictions experienced by the Investigators in arriving at
the root cause(s)?
There were few contradiction and uncertainties which had caused the arrival at the root cause of
the damage incurred at the Opal Tower. The contradictions experienced by the investigators can be
clubbed under two headings, the lack of consideration to the environmental factors and the discrepancy
between the 2018 and 2019 reports
- Lack of consideration to the environmental factors had been a prime reason why one of the most
vital reasons behind the damage incurred by the edifice had been ignored, or rather disregarded.
The report has ruled out the possibility of environmental factors being responsible for the damage
caused to the building. As per the meteorological records collected over the period of just few
months prior to the damage incurred at the Opal Tower, and in particular during the period exactly
just before to and on 24th December 2018, there have been no trace of any form of extremity or
adversity in tbe weather conditions. The precipitation records had however indicated some signs
of significant downpours in the months which lead up to Christmas, however they could not be
regarded to be unusual or abnormal. Hence the environmental factor was however not
considered as an important cause leading to the damage at the building. The matter of concern
herein is that it is not just the rain that causes damages to the building, rather its is the heat that
also causes damage to the buildings as it causes the iron bars of the buildings to expand and that
can cause problems to the structure of the building. Modern engineering has made it possible to
ensure the procurement of heat resistant materials for the purpose of construction and the
designing of the buildings are done in a way which would ensure that the buildings do not
succumb to the natural forces however there have been reports which have shown that the
quality of the materials have not been proper which makes it quite understandable that the
materials shall not be able to deal with the harshness of the nature. However that angle had been
ignored and not related to the poor quality materials (Planning.nsw.gov.au 2019).
- The investigation which had been carried out in the year 2018 had not been done thoroughly
which had come to light in the year 2019. In the interim report that was published on 14 January
2018, it had been indicated that there were no evidences recorded in the document that had been
reviewed till that date that would indicate that the materials used in the construction were inferior
in quality or they did not meet the specifications that were required. However later on with a
thorough investigation it was found out that the materials used were indeed quite faulty and that
could be attributed to the damage incurred by the building. Possibilities such as the concrete
which was used in a hob beam and that might not have completed or reached the specified 28
day strength was suspected later on carrying out further investigation. This is a example of the
discrepancy in the 2018 and the 2019 reports (Planning.nsw.gov.au 2019).
Question 2
Review the ISO 55000 suite of Standards and sample SAMP / AMPs uploaded in Learn JCU.
2.1 What are the key differences between a Strategic Asset Management Plan and an Asset
Management Plan
The Strategic Asset Management Plan is a proper documented plan for the management of the
resources of an organization so that the optimum amount if efficiency can be obtained while on the other
had the asset management plan is a general discussion about the dos and donts about the management
of the resources of a particular organization (Assetleadership.net 2019).
Give the fact that the Strategic Asset Management Plan is a proper documented plan, it makes
the fact very clear that it is distinct from the asset management plan in terms of precision and also in
terms of coherence. The Strategic Asset Management Plan provides a detailed analysis of the methods to
be followed by an organization and the necessary factors it should include in the management procedure
(Assetleadership.net 2019).

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Another key element that makes the Strategic Asset Management Plan distinct from Asset
Management Plan is the humane and the judicious approach of the plan which makes it necessary for the
organization to take care of the machineries in a proper way and not over exploit it without taking the
proper care of it. One of the most important improvements in the practice of asset management has been
the recognition of the existence of the assets not just for ensuring that they perform the functions, but
because they help an organization achieve its objectives. The standard also requires that the organization
determines and provides the resources that are needed to establish, implement, maintain, and
continuously improve their asset management systems so that the service delivery of the organizations
for the purpose of securing its own goals and also for the purpose of fulfilling the requirements of the
client does not stop and continues to provide the service. The requirements for the documentation,
collaboration with other the particular organization in order to secure continuous improvement must also
be met so that the particular organization can continue to provide the desired service for a longer period
of time as machines are likely to get damaged. In this case the periodic repair of the the particular
organization is being hinted at which was not taking place and that had led to the closure of the water
pump. The standard also requires documentation of policies and activities throughout the asset
management system in order to ensure that the proper reports of the maintenance are provided so that
the situational analysis of the particular organization so that the necessary actions could be undertaken
and ensure the proper delivery of service (Assetleadership.net 2019).
2.2 A water pump station in a public utility company is close to 10 years in service. Recorded
interruptions to service were caused by pump bearing failures motor overload and pipe leakages.
The facility is intended to be in service for another 10 years.
What are the key considerations in preparing an Asset Management Plan for an asset system of
this nature? Identify the key elements from ISO 55000 suite of Standards relevant to the Asset
Management Plan
The application of the six principles of the ISO 55000 suite of Standards shall be extremely
beneficial in providing a proper solution to the closed water pump for over 10 years.
1. Organization and People
ISO 55000 requires the public utility provider to determine the scope of its asset management
system, which in other words means that the assets which are supposed to be included in the water
pumping system. It means that the public utility provider can focus its ISO 55000 based asset
management tenets only on those particular assets which the facility feels that it needs the special
attention and care at that point of time, and not on all the assets at once, which means the attention
should be specific. The standard also requires the top management authorities of the public utility facility
to ensure that the asset management system is compatible with the organizational objectives of providing
service to the public. The standard also requires that the organization determines and provides the
resources that are needed to establish, implement, maintain, and continuously improve their asset
management systems so that the service delivery of providing water through the water pump does not
stop and continues to provide the service. The requirements for the documentation, collaboration with
other water pump facility in order to secure continuous improvement must also be met so that the water
pump can continue to provide the desired service for a longer period of time as machines are likely to get
damaged. In this case the periodic repair of the water pump facility is being hinted at which was not taking
place and that had led to the closure of the water pump. The standard also requires documentation of
policies and activities throughout the asset management system in order to ensure that the proper reports
of the maintenance are provided so that the situational analysis of the water pump so that the necessary
actions could be undertaken and ensure the proper delivery of service (Assetleadership.net 2019).
2. Risk and Review
As stated in the standard of ISO 55000 one of the imperatives of the IAM lies in the development of
the initial asset management systems so that guidance can be used to assure that the awareness of the
organization and consideration of the risks are well embedded in the culture and processes of the service
delivery. Thus it means that the water pump facility must reconcile itself to the risks on a periodical basis
and take the necessary steps to ensure that the water pump facility address the asset associated risks in
the context of the asset management systems and therebyarrive at the proper solutions. It also means
that the asset risk exposure should be calculated and measured in a manner which shall be appropriate,

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whether the risk is known to exist or is related to the emerging threats of general uncertainty. ISO 55000
also requires water pump facility to consider opportunities as well as risks when planning for all aspects of
the asset management system. Understanding asset risk provides water pump facility with the opportunity
to make smarter investments that shall build resilience and the capacity to adapt to critical asset
management centric functions which shall include the master planning of the human, natural and cultural
resource management along with the fulfillment of the strategic mergers and the acquisition. The design
and construction standard of the water pump must be met so that the utility system and the public
infrastructure can maintain the continuity of the task of providing water to the people and also fulfill the
emergency management requirements so that the periodical problems can be tackled effectively. Risks
and uncertainties increases with the poor planning, but good planning schemes can be of help to the
water pump facility for realizing newer opportunities (Assetleadership.net 2019).
No organization has all the required resources to ensure that every asset has a level of peak
performance throughout all the times, hence the water pump facility must consider risk for determination
of the investment related priorities as not all assets are equally important to the purpose or service
delivery, nor all are they related to assets at the same time. For establishing an achieveable priority
framework, the water pump facility must incorporate the risk factors for each of the assets, or the asset
class, into the asset information profile which shall be describing the necessasry information that are
needed to be monitored and measured. The methods for achieving it also includes reports on the
performance of assets and on the achievement of organizational mission goals that are affected by the
asset performance (Assetleadership.net 2019).
Water pump facility is also required to conduct continuous management reviews and internal
auditing to determine if the asset management system is performing as per the expectation and delivering
proper service. This process of continuous improvement is the most important feature of the management
systems approach.
3. Asset Information
ISO 55000 requires an organization to “determine its information requirements to support its assets,
asset management, asset management system, and the achievement of its organizational objectives.”
This includes information on the roles and responsibilities that are supposed to be fulfilled by the persons
in charge of the asset management related processes for management of the necessary information,
characterization of the secured information and other requirements for the alignment of the financial and
the non financial information, and many other very broader information requirements inclusive of the
documentings requirements. The following of the standard shall give the water pump facility a greater
flexibility in the manner it addresses the technical aspects of the information oriented requirements and
systems, and at the same time is also comprehensive in that which it is needed to consider. Asset
information is the most important technical component of any asset management system which includes
decisions, strategies, plans and delivery of service which are only as good as the information upon which
the reliance is dependent. Establishing a “Data DNA” shall provide a foundation for asset information
about the water pump facility and it shall consider the various factors that are likely to make the
performance of the facility better (Assetleadership.net 2019).
4. Strategy and Planning
If asset managers had been the rulers of the world and had no limitations on acquisition of resources
then all assets would have been maintained to deliver the best function and would have been replaced as
many times necessary, but that definitely is not possible in the real world. One of the most important
improvements in the practice of asset management has been the recognition of the existence of the
assets not just for ensuring that they perform the functions, but because they help an organization
achieve its objectives. Thus particular philosophy should be imbibed by the managers of the water pump
facility and that would have ensured that the service delivery of the facility would never have stopped.
This particular concept was first found in PAS 55 and has been adopted in ISO 55000. Since most water
pump facility resources are limited hence a choice must be taken about how the resources can be utilized
for benefitting the assets in a proper way so that the optimization of the performance of the machines can
be secured. Effective capital asset investment strategies must be aligned with a water pump facility, its
goals and consider all the relevant business drivers during the decision-making process. ISO 55000
requires water pump facility to develop a Strategic Asset Management Plan (SAMP) as the first step for
establishing the connection between organizational goals and the assets needed for achieving them. The
SAMP must identify the water pump facility’s asset management objectives and make sure that they are
in alignment with the water pump facility’s objectives which must be inclusive of the mission objectives,

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corporate values, levels of service and other objectives as appropriate and they must be documented
about the manner they are likely to be addressed by the asset management system. ISO 55000 also
requires the water pump facility to integrate its asset management planning activities with other
organizational planning activities which must be inclusive of planning for financial, human resource, and
other support functions. Consideration of risk and opportunity is incorporated throughout these
requirements (Assetleadership.net 2019).
5. Decision Making
ISO 55000 has only one requirement for this element and that is when planning how to achieve its
asset management objectives, the organization shall determine and document the criteria for asset
management decision making process. Decision Making is an area for which ISO did not see a need for
additional, more prescriptive requirements in 55000. There are myriad technical standards that support
operational decision making for most asset types; ISO 55000 takes an executive's view of asset
management. One hallmark of a high performance organization - and one of the most difficult to achieve
is the successful evolution of decision making from an exclusively tactical, operational processes to a
comprehensive organizational view of asset management built on the core principles of ISO 55000
(Assetleadership.net 2019).
6. Lifecycle Delivery
ISO 55000 requires water pump facility to plan, implement and control the processes needed to
implement their asset management plans. There are also requirements to monitor and address risks
associated with these processes and to take corrective actions when nonconformities or incidents occur
(Assetleadership.net 2019).
Thus these are the methods in which the water pump facility must follow the procedures of the asset
management plan in order to ensure that the proper service delivery happens and also the facility of the
water pump happens properly (Assetleadership.net 2019).

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References
Assetleadership.net. 2019. [online] Available at:
http://assetleadership.net/wp-content/uploads/2018/04/4tell_Whitepaper_Asset_Management-v.14.pdf
Planning.nsw.gov.au., 2019. [online] Available at: https://www.planning.nsw.gov.au/finalopalreport