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International Cost Factors

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Richardson Engineering Services, Inc.

PO Box 9103 Mesa, Arizona 85214-9103
Tel: 480.497.2062 Fax: 480.497.5529

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 RICHARDSON ENGINEERING SERVICES, INC.

INTERNATIONAL CONSTRUCTION FACTORS

Prepared & Published By

RICHARDSON ENGINEERING SERVICES, INC.

1742 SOUTH FRASER DRIVE
POST OFFICE BOX 9103
January 15, 2001

MESA, ARIZONA 85214-9103 USA

(480) 497-2062 FAX (480) 497-5529

E-Mail: info@resi.net

Copyright  2001 by Richardson Engineering Services, Inc.

GENERAL NOTES & INSTRUCTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Construction Estimating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

THE PURPOSE OF THIS MANUAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

HOW TO USE THIS MANUAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Base Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Country Location Cost Factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

U.S. AVERAGE CREW RATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

RICHARDSON ENGINEERING SERVICES, INC.

LOCATION FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
All data on this page Copyright 2001 by

General Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Country/City Specific Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

INDEX & LOCATION FACTOR FORMULAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

CALCULATING YOUR OWN LOCATION FACTORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

ENGINEERING DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

DEFINITIONS & ABBREVIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Page Numbering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

CONVERSIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
The Metric System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Length - Meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Area - Square Meter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Volume - Liter, Cubic Meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Weight (Mass) - Gram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Temperature - Degree . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Conversion Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Length . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Richardson’s International Construction Factors - Location Cost Manual i

RICHARDSON ENGINEERING SERVICES, INC.

INTERNATIONAL CONSTRUCTION FACTORS

Volume. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Weight (Mass) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

LOCATION COST FACTORS STATUS BY COUNTRY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

UNITED STATES AS THE BASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
AUSTRALIA AS THE BASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
JAPAN AS THE BASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
CANADA AS THE BASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
FRANCE AS THE BASE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
GERMANY AS THE BASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

January 15, 2001

UNITED KINGDOM AS THE BASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

COUNTRY SECTIONS
AUSTRALIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus i
CHINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AS-Chi i
INDIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AS-Ind i
INDONESIA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AS-Ido i
JAPAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AS-Jpn i
SINGAPORE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AS-Sin i
CANADA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NA-Can i
MEXICO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .NA-Mex i
KUWAIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ME-Kuw i
SAUDI ARABIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ME-Saa i
U.A.E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ME-Uae i
ARGENTINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SA-Arg i
BRAZIL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SA-Brz i
VENEZUELA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SA-Ven i
FRANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EU-Fra i
GERMANY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EU-Ger i
IRELAND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EU-Ire i
POLAND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EU-Pol i

RICHARDSON ENGINEERING SERVICES, INC.

All data on this page Copyright 2001 by
SPAIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EU-Spn i
UNITED KINGDOM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EU-Unk i
SOUTH AFRICA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AF-Soa i

ACKNOWLEDGEMENTS & BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ackn 1

ii Richardson’s International Construction Factors - Location Cost Manual

 RICHARDSON ENGINEERING SERVICES, INC.

INTERNATIONAL CONSTRUCTION FACTORS

Richardson Engineering Services, Inc.

Conducts
The International School of Construction Estimating

P.O. Box 9103 Phone: (480) 497-2062

Mesa, Arizona 85214-9103 Fax: (480) 497-5529
2001
15, 2001

2001 Seminar Schedule

January 15,

Process Plant General Construction Estimating

Phoenix, AZ February 5-7, 2001 Phoenix, AZ February 8-9, 2001
January

Phoenix, AZ March 19-21, 2001

Chicago, IL May 21-23, 2001 Cost Estimating for International Projects
Mesa, AZ June 25-27, 2001 Phoenix, AZ November 15-16, 2001
Atlanta, GA October 22-24, 2001
Phoenix, AZ November 12-14, 2001 winRACE/CostTrack Demo
Phoenix, AZ January 23, 2001
winRACE Computerized Estimating Phoenix, AZ February 8, 2001
Phoenix, AZ January 22-23, 2001 Phoenix, AZ March 22, 2001
Phoenix, AZ March 22-23, 2001 Atlanta, GA October 25, 2001
Chicago, IL May 24-25, 2001 Phoenix, AZ November 15, 2001
Atlanta, GA October 25-26, 2001

Other Richardson Publications & Products:

RICHARDSON ENGINEERING SERVICES, INC.
All data on this page Copyright 2001 by

Process Plant Construction Estimating Standards

4 Volume set of Material Cost and Manhour data specifically designed for the Process Plant industry.

General Construction Estimating Standards

3 Volume set of Material Cost and Manhour data specifically designed for the General Contractor.

Available for Both Process and General in Printed or CD-ROM Version.

Cost Trend Reporter

Semi-annual publication, includes Craft & Crew Rates and indexes for 120 cities throughout the USA and Canada, relative to the
rates used in the estimating standards.

winRACE Estimating Software

The Richardson Rapid Access Cost Estimating Spreadsheet System. Build estimates ranging from simple change orders to the
hundreds of millions of dollars. Available 32 bit (Windows 98/95/NT).

Electronic Line Item Databases

Line item databases designed for use with winRACE and ICARUS's estimating packages such as Icarus Project Manager,
Icarus 2000.

Richardson’s International Construction Factors - Location Cost Manual iii

 AUSTRALIA

REGION: AUSTRALIA
July 15,15,
January
RICHARDSON ENGINEERING SERVICES, INC.2000
2000
All data on this page Copyright 2000 by

Richardson’s International Construction Factors - Location Cost Manual AU-Aus i

AUSTRALIA

REGION: AUSTRALIA

GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 1

PEOPLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 2
Ethnic Divisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 3

HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 3

GOVERNMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 3
Political Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 4

January 15, 2000

FOREIGN BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 4
Commercial Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 4
Business Organizations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 4
Sole Proprietorship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 5
Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 5
Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 5
Foreign Ownership of Real Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 6
Foreign Ownership of Business Entities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 7
Foreign Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 7
Government Policy on Foreign Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 7
Organization of Foreign Firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 9
Subsidiary Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 10
Agents and Representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 10
Intellectual Property Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 10
Patents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 11
Trademarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 11
Copyrights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 11
New Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 11

TAXATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 11
Corporate Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 12

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Personal Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 12

All data on this page Copyright 2000 by

Other Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 12
Tax Treaties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 12

REGULATORY AGENCIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 12

TRADE REGULATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 12

Recent Tariff Reductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 13
Multilateral Trade Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 13
Import Tariff System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 13
Basis of Duty Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 14
Licenses and Tariff Quotas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 14
Customs Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 14
Exporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 15
Import Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 16
Import Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 16
Documentation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 16
Shipping Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 17
Marking and Labeling Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 17
Nontariff Import Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 18

ENVIRONMENTAL ISSUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 18

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 AUSTRALIA

REGION: AUSTRALIA

EMPLOYMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 18
Unemployment Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 18
Labor Relations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 18
Major Unions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 19
Worker Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 20

ECONOMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 20
Key Economic Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 22
USA Investment in Selected Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 23
January 15, 2000

Currency Exchange. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 24

GOVERNMENT CONTACTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus 25

GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 1

ENVIRONMENTAL PROTECTION AUTHORITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 1

GOVERNMENT CONTACTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 2

SHIPPING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 3
Shipping Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 4
From Los Angeles, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 4
From Seattle, WA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 5
From New York / New Jersey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 6
From Miami, FL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 7
From Houston, TX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 9

CREW RATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 10

LOCATION FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 11

General Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 12
RICHARDSON ENGINEERING SERVICES, INC.
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Australian Specific Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 12

INDEX & LOCATION FACTOR FORMULAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Melb 13

GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 1

ENVIRONMENTAL PROTECTION AUTHORITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 1

GOVERNMENT CONTACTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 2

SHIPPING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 3
Shipping Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 4
From Los Angeles, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 4
From Seattle, WA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 5
From New York / New Jersey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 6
From Miami, FL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 7
From Houston, TX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 8

CREW RATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 9

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AUSTRALIA

REGION: AUSTRALIA

LOCATION FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 10

General Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 11
Australian Specific Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 11

INDEX & LOCATION FACTOR FORMULAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Pert 12

GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 1

ENVIRONMENTAL PROTECTION AUTHORITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 1

January 15, 2000

GOVERNMENT CONTACTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 2

SHIPPING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 3
Shipping Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 4
From Los Angeles, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 4
From Seattle, WA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 5
From New York / New Jersey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 6
From Miami, FL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 7
From Houston, TX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 9

CREW RATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 10

LOCATION FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 11

General Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 12
Australian Specific Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 12

INDEX & LOCATION FACTOR FORMULAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU-Aus-Sydn 13

RICHARDSON ENGINEERING SERVICES, INC.

All data on this page Copyright 2000 by

AU-Aus iv Richardson’s International Construction Factors - Location Cost Manual

 AUSTRALIA

REGION: AUSTRALIA

GENERAL INFORMATION
Area: 7,686,850 Km2

Land use: Arable Land: 6%

Permanent Crops: 0%
Meadows and Pastures: 58%
Forest and Woodland: 14%
Other: 22%
January 15, 2000

Irrigated Land: 18,800 Km2 (1989 Est.)

Environment: Subject to severe drought and floods; cyclones along coast; limited freshwater availability;
irrigated soil degradation; regular, tropical, invigorating, sea breeze known as "The Doctor"
occurs along west coast in summer; desertification

Note: World's smallest continent but sixth-largest country

Climate: Generally arid to semi-arid; temperate in south and east; tropical in north

Terrain: Mostly low plateau with deserts; fertile plain in southeast

Population: 1980 - 14.6 Million

1990 - 17.0 Million
1994 - 18.0 Million
1995 - 18.3 Million
2000 - 19.3 Million

Time Zones: Australia has three time zones: Western Australia is GMT +8 hours; the Northern Territory
and South Australia are GMT +9 hours; Queensland, New South Wales and Victoria (the
eastern most territories) are GMT +10 hours. Relative to the United States, Australia is one
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day ahead across the International Date Line. For example, Tuesday in the United States is
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Wednesday in Australia.

Religions: Anglican 26.1%, Roman Catholic 26%, Other Christian 24.3%

Languages: English, native languages

Natural Resources: Bauxite, Coal, Iron ore, Copper, Tin, Silver, Uranium, Nickel, Tungsten, Mineral sands,
Lead, Zinc, Diamonds, Natural gas, Petroleum

Commodities:
Import: Machinery and Transport Equipment, Computers and Office Machines, Crude Oil and
Petroleum products

Export: Coal, Gold, Meat, Wool, Alumina, Wheat

Currency: Australian Dollar (A$)

Holidays: Jan 3 New Year's

Jan 26 Australia Day
Good Friday
Easter Monday
Apr 25 Anzac Day

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AUSTRALIA

REGION: AUSTRALIA

Jun 13 Queen's Birthday

Dec 26 Christmas
Dec 27 Boxing Day

Weights,
Measures &
Electrical Currents: Australia's weights and measures are based on the metric system. All Packages marked in
units other than metric must be marked to show metric equivalents. Electric circuits
generally carry 240 Volts AC, 50 cycles.

January 15, 2000

Fiscal Year: 1 July - 30 June

PEOPLE
Australia's aboriginal inhabitants, a hunting-gathering people generally referred to as Australoids, have lived on the island
continent for some 40,000 years. Although their technical culture remained static--depending on wood, bone, and stone tools
and weapons--their spiritual and social life was highly complex. Most spoke several languages, and confederacies sometimes
linked widely scattered tribal groups.

Aboriginal population density ranged from one person per square mile along the coasts to one person per 35 square miles in
the arid interior. They had no agriculture and nuclear families subsisted as hunter-gathers.

When Europeans arrived in the 18th century, the native population may have numbered 300,000 in as many as 500 tribes. The
aboriginal population currently numbers about 230,000, representing about 1.4% of the population. Since the end of World
War II, efforts have been made to be more responsive to aboriginal rights and needs. Today, tribal aboriginals lead a settled
traditional life in remote areas of northern, central, and western Australia. In the southern states, where interracial contacts are
most extensive, aborigines of mixed parentage are moving to the cities in increasing numbers.

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Immigration has been essential to Australia's development since the beginning of European settlement in 1788. For

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generations most settlers came from the British Isles, and the people of Australia are still predominantly of British or Irish
origin, with a culture and outlook similar to those of Americans.

Since World War II, the population has more than doubled. The increase reflects, in part, an influx of newcomers through an
extensive, planned immigration program. In the last 50 years, about 5 million immigrants have come to Australia; about 80%
have remained. One of every five Australians is foreign-born. Britain and Ireland have been the largest sources of post-war
immigrants, followed by Italy, Greece, and Yugoslavia. Immigration from the Middle East, Asia, and Latin America has
increased since the late 1960's.

In 1990 Australia accepted about 121,000 regular immigrants. In addition, during the last decade, about 20,000 New
Zealanders have settled in Australia each year. Australia's refugee admissions of about 10,000 per year are in addition to the
normal immigration program. Forty percent of the refugees are from Indochina and make up the largest single element in
Australia's refugee program in recent years. Since 1975, the country has accepted more than 125,000 refugees from Vietnam,
Laos, and Cambodia; it now has, on a per capita basis, more Indochinese refugees as permanent residents than any other
country.

Although Australia has a population density of scarcely more than two per square kilometer, it is one of the world's most
urbanized countries. About 15% of the population live in rural areas.

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Ethnic Divisions

Caucasian 95%, Asian 4%, Aboriginal and other 1%

HISTORY
Australia was uninhabited until about 40,000 years ago. Stone-culture peoples arrived, perhaps by raft, across the waters
separating the continent from the Indonesia archipelago. Portuguese, Spanish, Dutch, and English explorers observed the
January 15, 2000

island before 1770, when Capt. James Cook explored the east coast and claimed it for Great Britain (three American colonists
were crew members aboard Cook's ship, the Endeavor). On January 26, 1788 (now celebrated as Australia Day), the First
Fleet under Captain Arthur Phillip landed at Sydney. Formal establishment of the colony of New South Wales followed on
February 7.

Many of the first English settlers were convicts, condemned for offenses that today often would be considered to be trivial.
The mid-19th century saw the beginning of government policies to emancipate convicts and accelerate immigration.

The discovery of gold in 1851 spurred population growth and trade and generated unprecedented wealth. The six colonies
that now constitute the states of the Australian Commonwealth were established in the following order: New South Wales,
1788; Tasmania, 1825; Western Australia, 1830; South Australia, 1836; Victoria, 1851; and Queensland, 1859.

Discussions between Australian and British representatives led to adoption by the British Government of an act to constitute
the Commonwealth of Australia in 1900. The first federal parliament was opened at Melbourne in May 1901 by the Duke of
York (later King George V). In May 1927, the seat of government was transferred to Canberra, a planned city designed by an
American, Walter Burley Griffin. The first session of parliament in that city was opened by another Duke of York (King
George VI).

Australia passed the Statute of Westminster Adoption Act in October 1942, which officially established Australia's complete
RICHARDSON ENGINEERING SERVICES, INC.

autonomy in both internal and external affairs. Its passage formalized a situation that had existed for years. The Australia
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Act (1986) eliminated the last vestiges of British legal authority.

GOVERNMENT
The Commonwealth Government was created with a constitution patterned partly on the U.S. Constitution. The powers of
the Commonwealth are specifically defined in the constitution, and residual power remain with the states.

Queen Elizabeth II is the sovereign and since 1973 is officially "Queen of Australia." The Queen is represented throughout
Australia by a governor general and in each state by a governor. The federal parliament consists of a Senate and a House of
Representatives. Twelve senators from each state and two from each territory are elected for 6-year terms, with half elected
every three years. The 148 seats of the House of Representatives are allocated among the states and territories roughly in
proportion to population.

In ordinary legislation, the two chambers have coordinate power, but all proposals for appropriating revenue or imposing
taxes must be introduced in the House of Representatives. Under the prevailing Westminster parliamentary system, the
leader of the political party or coalition of parties that wins a majority of the seats in the House of Representatives is named
prime minister. The prime minister and the cabinet wield actual power and are responsible to the parliament, of which they
must be elected members. General election was in March 1993. Each state is headed by a premier, who is the leader of the
majority party in the lower house of the state legislature.

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AUSTRALIA

REGION: AUSTRALIA

Australia also has two self-governing territories, the Australian Capital Territory (where Canberra is located) and the Northern
Territory, with political systems similar to those of the states. At the apex of the court system is the High Court of Australia.
It has general appellate jurisdiction over all other federal and state courts and possesses the power of constitutional review.

Political Conditions

Three political parties dominate the center of the Australian political spectrum: the Liberal Party (LP), nominally
representing urban business-related groups; the National Party (NP), nominally representing rural interests; and the Australian

January 15, 2000

Labor Party (ALP), nominally representing the trade unions and liberal groups.

All political groups are tied by tradition to turn-of-the-century domestic welfare policies, which have kept Australia in the
forefront of societies offering extensive social welfare programs. There is strong bipartisan sentiment on many international
issues, including Australia's commitment to its alliance with the United States.

The ALP came to power in a sweeping victory in March 1983 behind Bob Hawke, the former head of the Australian Council
of Trade Union, who went on to become Prime Minister. Under the leadership of Paul Keating, the ALP was returned for a
fifth consecutive victory.

Although embracing some leftists, the ALP traditionally has been moderately socialist in its policies and approaches to social
issues. The current ALP government, however, generally has pursued market-oriented, competitive economic policies.

The ALP, as of 1993, holds 80 seats in the House of Representatives against 49 for the Liberal Party, 16 for the National
Party, and two for independents. In the Senate, the Australian Labor Party holds 30 of the 76 seats, the Liberal Party holds 30,
and the National Party holds 6. The Australian Democrats--a small party originally linked to the Liberal Party--has seven, and
there is one independent. Thus, the ALP lacks a majority in the Senate. This can be important because budgetary legislation,
while originating in the House, must be approved by the Senate. Repeated refusal by the Liberal/National opposition in the
Senate to approve the budget in 1975 led to dissolution of the then-Labor government by the governor general.

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FOREIGN BUSINESS
Commercial Policies

Free-Trade Zones: The Northern Territory Trade Development Zone is Australia's only free-trade zone.

Exchange Controls: There are no exchange controls governing day-to-day business and investment transactions. There are
no specific restrictions regarding the remittance of profits, dividends, and capital.

Business Organizations

The most common forms of investment used in Australia by both resident and non-resident investors are: companies,
including branch offices of foreign companies; joint ventures; partnerships; and trading trusts. Foreign firms may incorporate
in Australia after completing all relevant documentation (i.e., Certificate of Incorporation, Articles of Association and
Memorandum of Association). Foreign companies granted a Certificate of Incorporation are accorded the same rights,
powers, and privileges as a domestic company in a particular Australian state.

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 AUSTRALIA

REGION: AUSTRALIA

Branches of foreign corporations must register with the state or territory Corporate Affairs Commission. Branches are
accorded the same treatment as Australian companies.

Sole Proprietorship

As in the United States, a person may, subject to various formalities and authorizations that apply to specific types of
activities, create or purchase a business without forming a corporation. The owner has the sole responsibility for the
operations in which he or she engages. In settlement of debts, business assets, and personal goods and property, may be
January 15, 2000

attached.

An individual is free to carry on a business without formal registration requirements unless that individual elects to trade
under a business name other than his Christian surname. In the latter event, registration is necessary and involves a disclosure
of the true name, address, and occupation of the individual concerned.

Partnerships

The general principles relating to the rights and liabilities of partners are similar to those applying under American law.
Except as stated below, Australian law and Partnership Acts of the various states and territories rule that an association or
partnership formed for the purpose of carrying on a business may normally not consist of more than 20 persons. An
exception is made, however, in the case of an association or partnership which may consist of up to 50 persons. Accounting
firms may consist of up to 200 partners. There is no requirement that any or all of the partners be Australian residents.

Companies

In 1990, each State and Territory in Australia passed legislation (collectively called, "The Corporations Law") to enable the
RICHARDSON ENGINEERING SERVICES, INC.

introduction of a new national scheme for the regulation of companies and securities which took effect from January 1, 1991.
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This legislation replaced a co-operative State scheme that had existed since 1981.

A single national regulatory authority has been established for the administration of companies and securities law throughout
Australia called the Australian Securities Commission (the "Commission"). The Commission replaces the previous National
Companies & Securities Commission and the State Corporate Affairs Commissions.

A company may be limited by shares, limited by guaranty, or unlimited. The large majority of incorporated manufacturing
and commercial enterprises are established as limited-liability companies, which may be either public (Ltd.) or proprietary
(Pty, Ltd.) in organization.

Proprietary companies are formed to obtain the advantages of limited liability for family businesses, small companies closely
akin to partnerships, and companies that are subsidiary groups and divisions of other companies. If the desire is to impose
restriction on the transfer of shares, and if the capital required by the undertaking can be raised without the necessity of
offering shares to the public, incorporation as a proprietary company is the more convenient form, particularly in the
establishment of an Australian subsidiary by an American corporation. A proprietary company is one that restricts the right
to transfer its shares; prohibits any invitation to the public to subscribe for shares or debentures of the company; and prohibits
any invitation to the public to deposit money with the company. Any two or more persons or corporations may form a
proprietary company.

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The following regulations also apply to the formation of a proprietary company: the term "proprietary" must be included
before the word "limited" (frequently abbreviated to Pty, Ltd.) in the name of the company; a proprietary company may
commence business immediately upon incorporation, and the memorandum and articles need not be accompanied by the
directors written consent to act.

The term "public company" is normally used to describe a limited company other than a proprietary company. The public
company form of organization is used when it is deemed advisable or necessary to raise capital by offering shares to the
general public. Any five or more persons may incorporate a public company.

January 15, 2000

Special provisions exist in all states and territories permitting mining companies to be incorporated on a "no liability" basis.
Every company of this type shall have the words "No Liability" or the abbreviation "N.L." as part of and at the end of its
name.

Foreign Ownership of Real Property

Land tenure in Australia is a complicated matter as each state and territory has separate, but somewhat similar, legislation and
procedures. However, this complexity is not of special concern to investors interested in nonagricultural investments. Land
necessary for purposes other than agricultural or pastoral use is still plentiful, and exclusive of Crown lands (government-
owned), which are principally in the State of Queensland, aliens are generally able to acquire land on a basis equal with
Australian citizens. Land for industrial or commercial establishments can be obtained with a minimum of legal or procedural
difficulty on either a freehold basis or a long-term lease.

In New South Wales and Victoria, nearly all Crown lands have already been alienated. In the less-developed states,
opportunities still exist for large-scale pastoral development. However, an investor interested in a pastoral development
should consult local counsel regarding the various restrictions governing the alienation of such land to non-Australians.

Acquisitions of real estate for development are generally approved unless they are deemed contrary to the national interest.

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Acquisitions of developed nonresidential commercial real estate require 50% Australian equity participation, unless

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Australian equity is not available, in which case 100% acquisitions are approved if not contrary to the national interest.

The acquisition of residential real estate was previously permitted up to a value of US$460,000 without FIRB approval.
However, this threshold was abolished in September 1987, and all proposed acquisitions of urban, including residential, real
estate by foreign interests now require FIRB approval. Property developers may sell 50% of units in new developments to
foreigners without approval.

Each of the six states has a Land Department under the direction of a minister, who is charged generally with the
administration of acts relating to the alienation, occupation, and management of Crown lands. In the Northern territory, this
function is carried out by the Department of the Capital Territory.

Various cities and municipalities have town-planning programs, and prospective property owners should give consideration to
existing or proposed plans of this nature before acquiring a particular site. Failure to do so may involve refusal by municipal
authorities of permission to construct or enlarge industrial facilities.

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Foreign Ownership of Business Entities

USA nationals are, in general, permitted to own property and carry on business in Australia on the same basis as Australian
citizens, and foreign companies are free to participate in most industries, subject to compliance with relevant provisions of
state and federal law. Life insurance companies are required to register under the Life Insurance Act.

Foreign companies desiring to establish a place of business in Australia are subject to licensing requirements to the same
extent as an Australian company.
January 15, 2000

Generally, Australia does not impose any restrictions relating to the nationality of officers, directors, or shareholders. Neither
are there any legal provisions requiring local participation in equity capital or management of companies established in
Australia by foreign interest. However, prospective foreign investors should take into consideration the public sentiment that
more opportunities should be made available for local capital participation in foreign investments in Australia.

During recent years, as previously mentioned, special attention has been given to plans for taking over Australian firms by
foreign firms or other Australian companies, and to preventing the use of takeover methods which are unfair to company's
shareholders as a body. Guidelines have also been designed to give the government more time to intervene or express a view
on takeover proposals that might involve the national interest.

Foreign Investment

The Australian government supports long-term foreign investment that will assist Australia's economic development. For
example, there are investment opportunities in railway network construction, and airport terminal projects. The government
has liberalized its stance on foreign investment by increasing the value of projects which are exempt from review by the
Foreign Investment Review Board (FIRB) TO US$36 million, and by abolishing limitations on foreign equity in new mines
and restrictions on acquisition of existing mines. However, certain categories of investment continue to require FIRB
screening, including purchases of urban real estate and equity investment in restricted sectors.
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Foreign firms wishing to invest in Australia should first consider whether they need the approval of the Australian
Government under the FIRB process. FIRB approvals are usually granted within 30 days of notification. However,
restrictions on foreign investment apply in specific areas where the government considers few benefits will accrue to the
Australian economy from foreign investment. One example is the acquisition of developed non-residential commercial real
estate.

Incentives: A number of incentives are offered to foreign companies wishing to invest in Australia. Most are offered by
national and state governments and include tax and non-tax incentives. For example:

* Low interest loans to buy land, erect factories, or provide housing for key personnel.
* Subsidies for training employees or to lower freight costs.
* Bounties (incentive payments) for the manufacture of certain goods.
* Tax deductions for research and development projects.
* Incentives by Australian state governments for locating industries outside major cities.

Government Policy on Foreign Investment

Liberal investment regulations and a stable government have made Australia an attractive market for investment dollars.
However, there are drawbacks. The Australian economy is gradually emerging from a prolonged recession. The economic

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upturn begun in 1992 is moderate, with real growth rates expected to be in the 2%-4% range for the next few years. Also,
unemployment is at record levels, and is expected to remain high for the next several years. However, inflation is now well
under control, the balance of payments deficit has been scaled back, and Australian exports are expanding and are more
diversified.

An element in the Australian situation that is perhaps most attractive to prospective USA investors is political stability.
Firmly based on traditions of justice, due process of law, and civic responsibility of the individual, Australian institutions are
only in a few respects dissimilar to those of the USA. In addition to its high standard of living, major supplies of natural
resources, and growth prospects, Australia is in close proximity to the rapidly developing Asian-Pacific markets. Nearby

January 15, 2000

New Zealand also constitutes a market of approximately 3.5 million people.

Regulation of foreign investment is based on the Foreign Acquisitions and Takeovers Act, 1975, as amended in 1989, and
1991 regulations issued pursuant to this Act. Foreign investment in three sectors is severely limited. In the media industry,
the Broadcasting Services Act of 1992 provides that a foreign person may not exercise control of a television license, or have
company interests in such a license exceeding 15%, and two or more foreign persons may not have company interests in such
a license exceeding 20% of the equity in a domestic carrier individually or up to 40% in aggregate. All other foreign
investors (including those that do not operate an airline service to Australia) may acquire up to 100% of a domestic carrier or
establish a new aviation business. The purchase of urban real estate by foreign interests is regulated closely. Generally,
Australia seeks to assure 50% equity participation by Australians in such ventures. Where such participation is not available
on reasonable terms and conditions, however, applications for up to 100% foreign ownership will be considered.

The Federal Treasury administers foreign investment regulations with the assistance of the Foreign Investment Review Board
(FIRB), which screens investment proposals for conformity with Australian law and policy.

On February 26, 1992, the Australian Government announced major liberalization in the field of foreign investment. In the
banking sector, Australia now will permit the issuance of new banking authorities to foreign owned banks where the Reserve
Bank is satisfied the bank and its home supervisor are of sufficient standing, and where the bank agrees to comply with
Reserve Bank prudential supervision and arrangements. In addition, foreign owned banks will not be precluded from bidding

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for the smaller banks, i.e. for banks other than the four major Australian banks. In the mining sector (excluding uranium), the

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50% Australian equity and central guideline for participation in new mining projects, and the economic benefits test for
acquisitions of existing mining businesses, have been abolished.

The February 1992 announcement also dramatically increased the threshold below which foreign investment proposals are
exempt from FIRB examination so long as they involve one of the following sectors: rural properties; agriculture; forestry;
fishing; resource processing; oil and gas; mining (excluding uranium); manufacturing; non-bank financial intermediaries;
services. Proposals to acquire 15% or more of a company or business with total assets below A$50 million (US$35 million),
establish a new project or business with a total investment below A$50 million, or takeover an offshore company with
Australian subsidiaries or assets valued below A$50 million threshold in the listed sectors will be automatically approved.
Proposals above the threshold will be approved unless found contrary to the national interest.

The above changes do not apply to uranium mining, civil aviation, the media and urban real estate. Nor do the February 1992
changes alter the notification requirements of the Foreign Acquisition and Takeovers Act. The following categories of
investment proposals must be notified to the FIRB:

* Acquisitions of substantial interests in existing Australian businesses with total assets over US$3.85 million (US$2.3
million for rural properties);
* Plans to establish new business involving a total investment of over US$7.7 million;
* Investment in the media, irrespective of size;
* Direct investment by foreign governments or their agencies, irrespective of size;

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* Acquisitions of non-residential commercial real estate valued over US$3.85 million;

* Acquisitions of residential real estate, irrespective of size (unless exempt under the regulations);
* Takeovers of offshore companies whose Australian subsidiaries or assets are valued over US$15.4 million or account
for more than 50% of the target company's global assets; and
* Proposals where any doubt exists as to whether they are notifiable.

Traditionally, Australian officials and the general public have recognized the indispensable role of overseas capital, market
access technology, and know-how for the development of their immense mineral-rich but thinly populated land. Private USA
investors and prospective investors have found the authorities to be receptive and cooperative. However, the general aim is to
January 15, 2000

import long-term developmental capital and technology, rather than short-term speculative capital. The government seeks
Australian participation in mineral exploration. It has indicated that because of risks involved and the country's limited
capital resources, it is preferable to obtain high Australian equity participation at the production rather than exploratory stage.

This policy, centered on longer-term direct investment, is based on two principles: first, the importance that foreign capital
can contribute to the development of Australia's resources and industries; and second, to ensure that Australians have the
opportunities to participate in this development. The government stresses Australian participation in new projects in a 50-50
equity ratio. Although the 50-50 ratio is not a specific guideline, approval of projects without it is difficult.

Although strong awareness of the role of foreign capital still exists, some officials have expressed concern that key sectors of
the local economy might be dominated by foreign interest, to Australia's detriment. The takeover of local firms by larger
overseas concerns has become a matter for particular scrutiny.

In an effort to decentralize industries, Australian states offer important incentives for locating industries outside their major
cities. Incentives include low-interest loans to buy land, erect factories, and provide housing for key personnel. Subsidies are
provided to train employees as well as to offset increased freight costs.

The Australian Embassy and Consulates in the United States, along with Australian banks represented in the United States,
supply information on all aspects of Australian industry to any person or company interested in establishing itself in
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Australia. On the whole, advice and assistance in the development of new companies is given by branches of the various state
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governments. As most regulations concerning the establishment of a business in Australia are state-executed and
administered, it would be to the benefit of the prospective business executive proposing to establish a business in Australia to
work in harmony with state authorities. These authorities are as follows:

* New South Wales -- Department of State Development, Sydney;

* Victoria -- Office of Trade & Investment, Department of Business & Employment, Melbourne;
* Queensland -- Department of Business, Industry and Regional Development, Brisbane;
* South Australia -- Department of Industry, Trade and Technology, Adelaide;
* Western Australia -- Department of Commerce & Trade and Department of Resources Development, Perth;
* Tasmania -- Department of Industrial Development and Resources, Hobart;
* Canberra -- Economic Development Division, Chief Minister's Department, Canberra; and
* Northern Territory -- Department of Industries and Development, Darwin.

Organization of Foreign Firms

In Australia, a foreign company is usually defined as any company incorporated outside the state in which the business is
situated. For example, for legal purposes, a company incorporated in the United States or in New South Wales would be
defined as a foreign company if applying for registration in Victoria.

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Each foreign company must, within one month after it establishes a place of business or commences to carry on business in a
state or territory, obtain a certificate of incorporation and register certain documents with the Registrar of Companies in that
state or territory. The two basic documents which must be registered are the Memorandum of Association and the Article of
Association. The Memorandum of Association states the name and purpose of the company, as well as the number and
nominal value of the shares. As the Memorandum limits the scope of the company's powers, it also defines the purposes for
which company funds may be employed. The Articles of Association defines the procedures to be followed by the company,
the election of directors, and similar matters. Both the Memorandum and Articles may by altered by special resolution of a
company meeting (a majority of at least 75 percent of members present is required). The authorized capital of a company
need not be fully paid up at incorporation. A company may not, however, reduce its capital without the court's consent.

January 15, 2000

Subsidiary Companies

In general, subsidiary companies are granted the same rights and privileges accorded to other companies in Australia. A
company is deemed to be a subsidiary of another company if that other company controls the composition of the board of
directors, controls more than half of the voting power, holds more than half of the issued capital of the first-mentioned
company, or if the first-mentioned company is a subsidiary of any company which is that other company's subsidiary.

If an American company wished to establish a subsidiary company in Australia, whether as a public or a proprietary
company, instructions to effect the registration of such a company may be given to some person, firm, or corporation in that
state in which registration is desired.

For purposes of registration, a number of the members of the Australian firm or corporation concerned would arrange to
subscribe for one share each in the new company. Upon completion of registration of the subsidiary company, the Australian
subscribers would execute declarations of trust in the usual manner to the effect that the shares were held on behalf of the
American parent company, and the usual share-transfer forms in blank would be executed at the same time.

RICHARDSON ENGINEERING SERVICES, INC.

Agents and Representatives

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Representatives and agents may be appointed in Australia without difficulty, and many well-established Australian firms
serve as agents and representatives for American companies. Normally, agencies are subject to few requirements. A letter of
agreement, drawn by the Australian agency and the American company and properly signed and attested, generally is the only
documented required.

Intellectual Property Protection

The Australian legal system accords substantial protection to most property rights, including intellectual property rights.
Australian membership in the Berne and Universal Copyright Conventions affords reciprocal protection for works first
published in other signatory countries. The Paris convention for the protection of industrial property gives inventors priority
if they file for an Australian invention patent within 12 months or a design patent within 6 months of applying in another
convention country. Any trademark recognized as valid in the USA will be valid in Australia, under terms of the international
convention for the protection of industrial property (Paris Union Treaty). No federal or state legislation attaches property
rights to trade secrets.

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Patents

Patents are available for inventions in all fields of technology (except for human beings and biological processes for their
reproduction). They are protected by the Patents Act, which offers coverage for 16 years, subject to renewal. However,
patents for pharmaceutical substances may have the term of protection extended to 20 years. Trade Designs can be initially
protected by registration under the Designs Act for one year, which may be extended for six years and for two additional
periods of five years each upon application.
January 15, 2000

Trademarks

Trade names and marks may be protected for seven years and renewed at will by registration under the Trademark Act. Once
used, trade names and marks may also, without registration, be protected by common law. Australian law permits, in some
product categories, parallel imports; that is, imports of legally manufactured products ordered by someone other than a person
or firm having exclusive distribution rights in Australia. Parallel importation is allowed for books, and has been proposed for
sound recordings (legislation which would have allowed such imports died when Parliament was dissolved for the March,
1993 national election). In September, 1993, the Australian copyright law review committee recommended that parallel
importation of computer software be allowed under strict limitations.

Copyrights

Copyrights are protected under the Australian Copyright Act. Works do not require registration, and copyright protection
automatically applies to original literary, artistic, musical and dramatic works, film and sound recordings. Computer programs
are legally considered to be literary works. Copyright protection is for the life of the author plus 50 years.

The Australian Copyright Act provides protection regarding public performances in hotels and clubs, and against video piracy
and unauthorized third-country imports. However, no protection is accorded against the commercial rental of sound
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recordings without royalty payments. The USA continues to urge the government to provide for such protection in law. There
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have been no complaints about unauthorized public showings of films in recent years. The Attorney General's Department
monitors the effectiveness of industry bodies and enforcement agencies in curbing the illegal use of copyrighted material.

New Technologies

Illegal infringement of technology does not appear to be a significant problem. Australia has its own software industry and
accords protection to foreign and domestic production. Australia manufactures only basic integrated circuits and
semiconductor chips. Its geographic isolation precludes most USA satellite signal piracy. Australian networks, which pay for
the rights to USA television programs, jealously guard against infringement. Cable television is not yet established in
Australia.

TAXATION
Income tax in Australia is levied at the federal level. Resident taxpayers, including foreign citizens living in Australia and
foreign incorporated companies with management and control in Australia, are taxed on worldwide income. All Australian-
source income is subject Australian tax. Taxation of income by more than one country is avoided either through a foreign tax
credit system or through exemption depending on the circumstances. Personal income taxes are payable on a progressive
scale with a threshold of A$5,400 and a maximum of 47 percent payable on earnings over A$50,000.

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Corporate Taxes

Corporations which are based and managed in Australia and branches of foreign corporations in Australia are taxed at a rate of
39 percent. In addition, a branch profits tax of five percent is applied to non-resident companies. A withholding tax is applied
to dividends and interest paid in Australia by foreign subsidiaries.

Personal Income Taxes

January 15, 2000

Income taxes in Australia are levied on a progressive scale. The minimum tax rate is 20 percent, while the top marginal rate is
47 percent. Non-residents are taxed only on income arising from Australian sources.

Other Taxes

A sales tax of 20 percent is levied on the sale of goods. However, many goods are subject to special rates. Alcohol, tobacco
and petroleum products are subject to an excise tax. State governments also levy payroll taxes, stamp taxes on business
transactions, and land taxes.

Tax Treaties

The United States and Australia have an agreement to avoid double taxation and a treaty which lowers the withholding tax
paid on dividends to 15 percent. The withholding tax is generally 10 percent for interest and royalty payments.

REGULATORY AGENCIES

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* The National Companies and Securities Commission (NCSC) administers company law and regulates the securities

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industry.
* The Reserve Bank of Australia administers exchange control regulations.
* The Customs Service in the Department of Trade and Commerce is responsible for the issuance of import quotas.
* The Commonwealth Commissioner of Patents grants the registration of designs and trademarks.
* The Prices Surveillance Authority assesses the validity of price increases sought by businesses falling within its
jurisdiction.
* Currency transfers from Australia in excess of <R>A$10,000 must be reported to the Cash Transactions Reports Agency.

TRADE REGULATIONS
The Australian Government has historically used high tariff rates, quotas and import licenses as a means of assisting
Australian industries against import competition. These policies, however, began to change in the late 1980's when the
government launched broad new initiatives aimed at restructuring and strengthening the national economy, and redirecting its
focus toward the global economy.

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Recent Tariff Reductions

The Australian Government's 1988 plan for the progressive reduction of tariff protection for local industry is continuing its
course. By July 1, 1996, the program aims to achieve a general tariff rate of 5 percent, with the exception of certain
automobile products, and the traditionally protected textile, clothing, and footwear (TCF) industries.

Despite pressure from industry and the union movement, the government has kept the reforms on track. The trade-weighted
average for Australian duties has so far been reduced from 8% in 1990 to 7% in 1992. During 1993, this is expected to be
reduced further by one percentage point, bringing Australia closer to the USA and EC level of 5 percent.
January 15, 2000

On July 1, 1992, tariffs over 15 percent were reduced to the 15 percent level, and those between 10 percent and 15 percent
were reduced to 10 percent. The exceptions are TCF and automobiles. Out-of-quota penalties on TCF imports were reduced
by half on March 1, 1992 and were eliminated on March 1, 1993. By July 1, 2000, apparel and certain finished textile tariffs
(47 percent) will be reduced to 25 percent; footwear, sheeting and woven fabrics (37 percent) to 15 percent, and existing non
quota TCF products to 10 percent.

The 1993 automobile tariff of 32.5 percent will be reduced in phases to 15 percent by the year 2000.

The United States should benefit progressively from these tariff reforms, and will encourage continuation of the program.
The USA will also press for increased binding of tariffs to GATT.

Multilateral Trade Agreements

The Australian Government is a signatory to the GATT Import Licensing Code, the Meat and Dairy Products Code, the
Customs Valuation Code, the Antidumping Code and Subsidies Code (with reservations) and the Technical Barriers to Trade
Code (Standards Code). However, Australia is not a signatory to the GATT Civil Aviation Code, Government Procurement
Code, and the Counterfeit Code.
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Import Tariff System

Australia's tariff system is a dual-column schedule, which provides for both general and preferential duty rates. Preferential
rates are applied to goods from developing countries, declared preference countries, and a wide range of products from South
Pacific Forum Island countries, as well as to certain imports from Canada, New Zealand, and Papua New Guinea. The
general rate applies to all other countries.

All preferential rates are set at 5 percentage points below the general rate or are free when the general rate is 5 percent or less.
For textiles, clothing, and footwear (TCF) products, the margins are generally 10 percentage points for countries that do not
exceed a certain share of imports in a 12-month assessment period. Countries that exceed the threshold are excluded from
preference for the relevant calendar year. A uniform five point margin is applied to TCF products from all developing
countries. A wide range of handicrafts enter duty free without quota limitations.

In 1984, Australia and New Zealand enacted the Closer Economic Relationship Agreement (CER). The CER supersedes the
New Zealand-Australia Free Trade Agreement of 1966. The CER agreement calls for the progressive elimination of tariffs on
goods exported between the two countries. Since the majority of trans-Tasman trade already comes in duty free, there will not
be a major loss of duty revenue. The CER does offer opportunities for USA firms to enter the Australian market where the
duty may be high or other restrictions imposed. To qualify for preference status, goods must comply with conditions
prescribed for the granting of preferences set out in the Customs Act and Regulations.

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An important provision of the Australian tariff system is the Commercial Tariff Concession System (CTCS) which allows for
a reduction in duties on imported goods where it is established that no goods serving a similar function are produced or
capable of being produced in Australia. Goods currently admissible under the CTCS are listed in the "Schedule of
Commercial Tariff Concessions," an Australian customs publication.

Applications for reduced tariffs are usually submitted by Australian importers or users of the imported goods to the Australian
Customs Service. Therefore, the USA exporter should contact the appropriate Australian firms directly. Applications should
be made to the Tariff Concessions Branch, Department of Industry and Commerce, Canberra, ACT, 2600 Australia.

January 15, 2000

Information regarding Australian duty rates on specific products may be obtained from the Australia Desk, Room H-2036,
International Trade Administration, U.S. Department of Commerce, Washington, D.C. 20230, or from any U.S. Department of
Commerce district office. Inquiries should contain the Harmonized System (HS) commodity classification number. The HS
classification number can be obtained through the U.S. Department of Commerce Census Bureau at telephone number
(301) 763-5200.

Basis of Duty Assessment

Australia implemented the International Harmonized Tariff System in 1988. Duty rates are assessed on the customs value of
the price actually paid or payable for the good, f.o.b. port of shipment. Applicable rates of customs duty may be ad valorem
(i.e., a percentage of the customs value), fixed, composite, alternate (e.g., 20 percent or, if higher, US$0.16/kg), or free.
Import duties are payable in Australian currency. The official rate of exchange at time of publication is [US$1.00 = A$1.39].
The dutiable weight for the collection of specific duties in Australia is generally the actual weight of the imported
merchandise. Therefore, packing and wrapping have no effect on the dutiable weight. Australia uses the metric system.

Licenses and Tariff Quotas

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Australia is phasing out import licensing requirements. However, they still exist for certain goods, including secondhand

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earthmoving and similar equipment.

In the past, tariff quotas were used to restrict the import of certain goods into Australia. Rates of duty for goods subject to a
quota were set at a high level and then duty concessions were offered to those importers who held quotas. Tariff quotas
existed for the textile, clothing, and footwear industries. However, these tariff quotas were terminated on March 1, 1993.

Customs Procedures

Persons entering Australia are required to make an oral declaration of their belongings and, upon request, to open their
baggage for inspection by a customs officer.

Certain personal and professional effects may enter Australia duty free, provided they are the personal property of the traveler,
accompany the traveler on arrival, are suitable and intended for the traveler's own use, are not imported in commercial
quantities, and are not intended for commercial purposes. These goods include clothing apparel; articles of a strictly utilitarian
nature of a kind normally carried or worn on the person or carried in hand baggage (e.g., wrist watch, cigarette lighter);
binoculars; portable typewriter; exposed films of a transient's travel; photographic cameras; radio sound entertainment
appliances (radios and tape recorders weighing not more than 4 pounds and 12 pounds, respectively); surgical, dental,
veterinary hand instruments; and portable equipment of a kind normally owned by workers in following their particular trade
(goods in the category of tools and instruments must be of the kind held in the hand).

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The final decision as to which articles are to be accorded duty-free treatment rests with the Australian customs authorities and
depends on a traveler's accustomed habits, his occupation, and the duration of his intended stay in the country.

Articles determined to be in excess of a traveler's actual needs may be subject to import duty or may be temporarily admitted
under bond. The security deposit in the latter case will be released upon reexport of the articles.

Incoming passengers are allowed to bring goods up to A$250 duty free into the country.

Australia has stringent quarantine regulations; travelers are discouraged from attempting to take into Australia foodstuffs and
January 15, 2000

other quarantinable goods as they will be subject to quarantine and possible seizure.

Travelers who plan to bring articles into Australia for demonstration purposes are advised to make appropriate arrangements
with the Australian customs authorities for proper customs handling prior to arrival in the country. This may be done directly
through business partners, agents or representatives in Australia. The importation of such goods generally requires a bond or
a carnet. The bond is a security deposit that is refundable once the goods are exported. The carnet is an internationally
accepted document which allows goods to be taken in and out of a country for 1 year. Information on the bond is available
from Australian Customs Service, Australian Consulate General, 636 Fifth Avenue, New York, N.Y. 10011. The carnet is
administered through the Carnet Division, U.S. Council for International Business, 1212 Avenue of the Americas, New York,
N.Y. 10036.

Exporting

Agents and Distributors: An alternative to direct investment is operating through a sales representative, distributor, licensing
arrangement, or franchise. Sales representatives generally solicit business for the foreign corporation and serve as a conduit
for purchase agreements. In most cases, a sales representative does not have the power to negotiate terms or to finalize a sales
contract. Instead, the sales representative forwards the contract to the principal (who then either accepts or rejects the
contract.)
RICHARDSON ENGINEERING SERVICES, INC.
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A distributor acts as an independent contractor, purchasing products from the foreign corporation and distributing them to
either wholesale buyers or, on occasion, retailers. Generally, the foreign corporation cannot restrain the distributor from
selling a competitor's products. However, since the distributor does not act as an agent of the foreign corporation, the foreign
corporation is not bound by the acts of the distributor.

A franchise agreement may be distinguished from a licensing agreement as the franchisee is not only receiving the right to use
a particular trademark or service mark, but also is obtaining a system of production (or marketing) from the franchisor. The
franchisee pays a fee for the services. There are now laws in Australia which specifically regulate disclosure in relation to
franchises, except in the petroleum industry.

Parties are free to choose the law governing the contract when drafting an agreement. However, the choice of foreign law
does not preclude mandatory provisions of Australian law. Without a choice of law, Australian courts will apply the law of
the jurisdiction where the agent or distributor works. Agency appointments should be submitted in writing to satisfy various
state jurisdictional laws, especially when they last for more than one year or include terms for commissioning the agent.

Fixed and indefinite-term contracts may be employed. However, constant renewal of fixed-term contracts will not cause the
contract to achieve indefinite-term status.

Agents assume a number of duties and obligations upon commencement of the contract, including: obeyance of the principal's
instructions; good faith/action in the interest of the principal; and maintenance of proper accounts. The agent retains the right

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AUSTRALIA

REGION: AUSTRALIA

to remuneration, and the right to an indemnity for liabilities or for losses incurred due to improper termination. However,
there is no precedent for required indemnity payments in Australian law.

Parties may stipulate specific causes for termination in the agreement. Either party may terminate the agreement upon receipt
of reasonable notice of termination. Although no specific time period exists which defines a "reasonable notice period",
courts will take into consideration the nature and length of the contract when determining whether reasonable notice was
given.

January 15, 2000

Import Restrictions

There are two main forms of quantitative restrictions on importing in Australia -- licenses and quotas. Although Australia is
phasing out import licensing requirements, these still exist for certain goods such as second-hand earthmoving (and similar
industrial) equipment. The second form of quantitative restriction is imposed by way of tariff quotas. Rates of duty for goods
subject to a quota are set at a high level, then duty concessions are offered to those importers who hold quotas. Tariff quotas
exist for the textile, clothing and footwear industries.

Restricted or stringently controlled goods include firearms, undesirable publications, and articles detrimental to public health.

Import Duties

Australia uses the Harmonized System (HS) to classify products for tariff purposes. Rates are assessed on the customs value
based on the price actually paid for the goods. Custom duties may be ad valorem, fixed, composite, alternate or free. The
rates that apply to dutiable imported goods are found in the schedules to the Australian Customs Tariff Act of 1987. There are
significant differences in the rates of duty between different tariff items so it is important to determine the correct
classification of goods.

RICHARDSON ENGINEERING SERVICES, INC.

The 1988 Australian Federal Government plan for the progressive reduction of tariff protection for local industry has reduced

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average Australian duties from eight percent to seven percent. The program aims to achieve an average rate of five percent.
Specific tariff reductions are planned for the motor vehicle, textile, clothing and footwear industries. From 1993 to 2000,
there will be a 2.5 percent annual tariff reduction such that by the year 2000 passenger motor vehicle tariffs will be 15 percent.
Tariff reductions on textiles, clothing and footwear are being reduced such that the maximum tariff will be 25 percent by the
year 2000.

In Australia, the main purpose of tariffs is to foster the development and expansion of domestic industries, rather than to raise
revenue. Consequently, Australia's Tariff Concession system permits duty-free entry in cases where there is no competitive
domestic industry. Certain goods are precluded by the customs regulations from eligibility for tariff concession orders,
including foodstuffs, motor vehicles, footwear, apparel and jewelry. Developing countries and preferential rates are set five
percentage points below the general rate or are free when the general rate is five percent or less.

Documentation

All shipments to Australia require an invoice, which must include a description of the goods, the quantity, the number of
packages, and identification marks of the ship or aircraft. The invoice must show information to permit calculation of the
value of the duty. The amount on the invoice must state whether the selling price includes f.o.b. charges. A bill of lading is
required on ocean shipments. Invoices may be sent to Australian Customs by the shipping line when the ship departs the
country of export.

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Shipping Documents

An invoice is required for all commercial shipments (surface or air) to Australia. It is important to supply all pertinent
information required on the invoice, including the declaration of value and certification of the country of origin of the goods.
Consular visa or notarial signatures are not required. However, the signature on the invoice must be that of a person able to
declare, with full knowledge of all circumstances, as to the correctness of the details shown on the invoice. In most cases, it is
not possible for a forwarding agent in the United States to have this information. The Bureau of Customs in Australia will
query any invoices that are signed in this manner by a forwarding agent, and case deposits may be requested from the importer
pending the results of inquiries in the United States. Exporters must complete each invoice column with precision. Marks,
January 15, 2000

numbers, and number of packages must be clearly indicated, and goods must by fully described. The selling price must state
whether the f.o.b. charges have been "included" or "excluded" from the amount shown on the invoice.

A bill of lading is required on ocean shipments, but no special form is required. "To order" bills of lading are permissible and
are protected under the law. Waybills may be required on shipments by air.

In an attempt to expedite clearance of products sent by ship through customs, invoices can be sent to Australian Customs by
the shipping lines when the ship departs the United States. Electronically sent invoices often reach customs agents several
weeks before ship arrival at port.

Marking and Labeling Requirements

Australian law requires that the quantity of a commodity sold in a package must be accurately stated on the main display panel
of the package in metric units, in letters of minimum print height, clear of other copy and with good color contrast. The use of
dual marking to indicate various systems of weights and measures, though not prohibited, is not recommended. The word
"net" indicated in either upper or lower case, must always be used when expressing quantity in units of mass.

Packaging laws require that certain articles must be packaged in prescribed sizes. In 1991, the state governments agreed that
RICHARDSON ENGINEERING SERVICES, INC.

any product, including imports, meeting the legal requirements of one state could be sold in all other states and territories.
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All imported articles containing markings in a language other than that ordinarily used by the country of origin is prohibited in
Australia unless it also contains a statement in English indicating the country in which the articles were made or produced.
Foreign goods bearing the name of an Australian dealer or importer, or any indication that might be regarded as Australian,
must also be marked with the country of origin, for example, "Made in U.S.A."

The importation of certain goods is prohibited unless there is applied, in the form of a principal label or brand affixed to the
goods or container, a trade description that includes the name of the country of origin. These goods are articles of food or
drink and their ingredients; medicines and medicinal preparations; fertilizers; agricultural seeds; plants; textile products and
articles of apparel, including boots and shoes; leather; jewelry; china, porcelain, earthenware, and enameled hollowware used
in serving food and drink, including kitchenware and kitchen utensils; electrical appliances, apparatus, and accessories;
powder puffs; toys; sanitary and lavatory articles; wall, hearth, and floor tiles; and watches, clocks, and movements.

Certain clothing, household textiles, furnishings, piece goods, and yarns supplied by Australian manufacturers or importers
cannot be sold without instruction on their care. A mandatory Care labeling Information Standard requires adequate
instruction regarding general warnings and cleaning instruction. The standard also provides guidance on the type of statement
that would be appropriate. Copies of the standard are available from the Standards Association of Australia.

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AUSTRALIA

REGION: AUSTRALIA

Electrical goods must be checked or approved with either the electricity authority in each state or with the local supply
authority, as appropriate. In addition, Australian standard specifications apply to many products, including certain structural
building and electrical goods.

Nontariff Import Controls

Under Australian quarantine regulations, certificates of health or freedom from disease are required for all imports of animals
and plants. These may be obtained from the local U.S. Department of Agriculture officer. Importation of dangerous drugs,

January 15, 2000

firearms, undesirable publications, and articles deleterious to public health are either prohibited or subject to stringent
controls, and imports of certain other products may be subject to special conditions from time to time.

ENVIRONMENTAL ISSUES
Environmental laws in Australia are developing. Each State and Territory is responsible for legislating and administering
Environmental Standards and Codes. See each city section for further information.

EMPLOYMENT
Unemployment Rates

1980 6.1 1987 8.1

1981 5.8 1988 7.2
1982 7.2 1989 6.2
1983 10.0 1990 6.9

RICHARDSON ENGINEERING SERVICES, INC.

1984 9.0 1991 9.6

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1985 8.3 1992 10.8
1986 8.1 1993 10.9

Labor Relations

At the beginning of 1993, the Australian civilian work force totaled just over 8.5 million persons, or 63 percent of the civilian
population aged 15 years or older. Following a period of sustained employment growth (1.6 million new jobs were created
between 1983 and 1990), the 1990-91 recession ate into previous gains. Unemployment, which stood at 700,000 in 1983,
broke the 1 million mark for the first time in February 1993. Although Australia's economy emerged from recession in the
third quarter of 1991, the pace of recovery has been insufficient to reduce unemployment. As in the United States, many
Australian companies restructured themselves for a more competitive world market, suggesting that many jobs lost in the
recent recession are gone for good. Australia's labor market began to deteriorate from the end of 1989. Whereas the
unemployment rate averaged 7 percent in 1990, it reached a historic high of 11.4 percent in November 1992. Addressing
unemployment is the dominant focus of government economic policy.

Presently in Australia, about 80% of wage and salary earners are covered by a system of industrial "awards," which are
legally binding prescriptions of minimum pay and working conditions. Awards may apply to an occupational grouping, to an
industry or to an enterprise and can be created or altered by independent industrial tribunals set up for the conciliation and
arbitration of industrial disputes, following representations from employers unions, and, where relevant, governments. In

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addition to the award rate of pay, actual wages often include "over award" payments negotiated more directly between workers
and management (productivity bonuses, for example).

Australian labor costs are competitive with other members of the Organization for Economic Cooperation and Development
(OECD). Based on U.S. Bureau of Labor Statistics measures of hourly-manufacturing labor costs, they are substantially less
than Germany, slightly less than the USA and Japan, marginally less than the U.K., but substantially higher than New Zealand.

In 1992, just under 40 percent of total employees in Australia were members of a union, compared to 50 percent 10 years
earlier and a historical high of 60 percent in the 1950's. For the most part, unions are organized on a craft or semi-industrial
January 15, 2000

basis. Therefore, in the usual plant the workers are represented by several unions.

In recent years, there has been a dramatic reduction in the number of trade unions due to amalgamation. There were 227
unions in 1992, down from 326 in 1986. The process of union rationalization is continuing, with an ultimate aim of 20 mega-
unions. Unions are affiliated with the Australian Council of Trade Unions (ACTU), which determines national trade union
policy. The ACTU leadership, however, envisions that the mega-unions will assume greater independence from the parent
body in an effort to extend the unions' delivery of services and grass roots outreach.

American businesses must recognize the important role unions have on all aspects of doing business in the country. Clauses in
sales or dealer contracts that relieve the seller of penalties due to cause by strikes or taking out strike insurance are two ways
USA businesses can handle labor disruptions, but foreign companies which work with employer groups and appropriate
unions from the earliest stages of investment generally experience far fewer labor disputes than those that treat industrial
relations as a secondary consideration.

Major Unions

Liquor & Hospitality Workers Union 210,182

Shop, Distributive & Allied Employees' Association 201,251
RICHARDSON ENGINEERING SERVICES, INC.

Australian Services Union 188,000

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Australian Workers Union/FIMEE 174,445

Australian Education Union 160,422
Automotive, Metals & Engineering Union 150,000
State Public Service Federation 148,185
Construction, Forestry, Mining & Energy Union 148,000
National Union of Workers 100,600
Public Sector Union 99,475
Australian Nursing Federation 94,956
Finance Sector Union 93,636
Electrical, Electronic, Plumbing &
Allied Workers Union of Australia 91,877
Transport Workers Union 91,429
Communication Workers Union 74,983
Health Services Union 73,185
Public Transport Union 46,475
Professional Engineers & Scientists 16,652
Media Alliance Union 12,104
Maritime Union of Australia 10,228

Source: The Australian Trade Union Monitor (Australia's Super Union - Pat Huntley)

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REGION: AUSTRALIA

Worker Rights

a. Right of Association

Workers in Australia fully enjoy and practice the rights to associate, to organize and to bargain collectively; rights
enshrined in the Arbitration Act of 1904. Although there is no specific legislation guaranteeing the right to strike in
Australia, work stoppages are well-established in practice. In general, industrial disputes are resolved either through direct
employer-union negotiations or under the auspices of the various state and federal industrial relations commissions whose
mandate includes resolution of disputes through conciliation and arbitration. Australia has ratified the major International

January 15, 2000

Labor Organization (ILO) conventions regarding worker rights.

b. Right to Organize and Bargain Collectively

Approximately 40 percent of the Australian work force belongs to a union. The industrial relations system operates
through independent federal and state tribunals; unions are fully integrated into that process, having explicitly stated legal
rights and responsibilities.

c. Prohibition of Forced or Compulsory Labor

Compulsory and forced labor are prohibited by ILO conventions which Australia has ratified, and are not practiced in
Australia.

d. Minimum Age for Employment of Children

The minimum age for the employment of children varies in Australia according to industry apprenticeship programs, but
the enforced requirement that children attend school until age 15 maintains an effective floor on the age at which children
may be employed on a full-time basis.

RICHARDSON ENGINEERING SERVICES, INC.

e. Acceptable Conditions of Work

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There is no legislatively-determined minimum wage. An administratively-determined minimum wage exists, but is now
largely outmoded, although some minimum wage clauses still remain in several federal awards and some state awards.
Instead, various minimum wages in individual industries are specified in industry "awards" approved by state or federal
tribunals.

Workers in Australian industries, including the petroleum, food, chemicals, metals, machinery, electrical, transportation
equipment, wholesale trade, and general manufacturing sectors, enjoy hours, conditions, health, safety standards and
wages that are among the best and highest in the world.

f. Rights in Sectors with USA Investment

Most of Australia's industrial sectors enjoy some USA investment. Worker rights in all sectors are essentially identical in
law and practice and do not differ between domestic and foreign ownership.

ECONOMY
The Australian economy consists of export-oriented agricultural and mining sectors coupled with a diverse manufacturing
sector dedicated to domestic requirements. Balance of payments are strongly affected by world prices of primary products: In

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1993, 62% of all exports were primarily agricultural of mineral products. Australia is one of the world's leading producers and
exporters of minerals such as aluminum, alumina, bauxite, cobalt, copper, abundant supplies of coal, natural gas, liquid,
petroleum gas, and uranium make Australia a leading exporter of energy products.

Historically, the manufacturing sector has been protected from foreign competition by trade barriers and subsidies, which have
discouraged industrial modernization and productivity as well as exports. This sector is diversified but has a small domestic
market and labor force and relatively high labor costs fostered by strong unions.

Since 1984, the government has moved to reduce or eliminate tariffs and sectoral assistance. Under the government's tariff
January 15, 2000

reduction program, most tariffs will be reduced to 5% by 1996. Corporate taxes have been cut significantly. Unions have
agreed to gradual reductions in real wages. The financial sector was liberalized and opened to international competition.
Exports of manufactured or mineral exports has decreased by 5% since 1990.

Foreign investment has been vital in the development of Australian ranching, transportation, and manufacturing. The
government welcomes foreign investment, particularly if it is for export-oriented industries and creates employment
opportunities. Some restrictions on foreign ownership exist for the media, civil aviation, mining, and certain kinds of real
estate. In 1992-93, cumulative USA investment in Australia totaled more than $48 billion and accounted for 21% of total
foreign investment.

Australia is still recovering from a 1990-91 recession. The real gross domestic product grew by 2.5% in 1992, and business
investment is improving. Inflation has been reduced from 8% to 3%. However, unemployment remains at about 11%.

Over the long term, Australia's economic prospects generally are bright. The successful conclusion of the General Agreement
on Tariffs and Trade Uruguay Round of trade liberation negotiations should boost overall economic activity, exports, and
employment. In addition, the integration of the Australian economy into the rapidly growing Asia-Pacific region and the
increasing emphasis on using the Asia-Pacific Economic Cooperation (APEC) forum to advance regional economic
liberalization should boost future growth.
RICHARDSON ENGINEERING SERVICES, INC.
All data on this page Copyright 2000 by

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REGION: AUSTRALIA

Key Economic Indicators (Billions of US dollars, unless otherwise noted)1

1996 1997 19982

Income, Production, and Employment

Nominal GDP3 396.0 354.9 350.6

Real GDP Growth (percent) 2.8 4.0 3.0
GDP By sector: (percent)4
Agriculture 13.2 11.7 10.9

January 15, 2000

Manufacturing 96.0 84.1 82.0
Government 12.2 10.5 9.9
Services 192.6 173.9 168.7
Per Capita GDP (USD) 22,000 19,700 19,500
Labor Force (000's) 9,127 9,220 9,349
Unemployment Rate (percent) 8.6 8.6 8.1

Money and Prices(annual percentage growth)

Money Supply (M3) 9.4 6.3 9.6

Consumer Price Inflation 1.5 -0.2 2.0
Exchange Rate (Aust$/USD annual average)
Official n/a n/a n/a
Parallel 1.27 1.35 1.28

Balance of Payments and Trade

(Billions of US dollars unless otherwise noted)1

Total Exports (FOB) 60.4 56.7 55.8

Exports to USA 3.9 4.2 5.5

RICHARDSON ENGINEERING SERVICES, INC.

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Total Imports (CIF) 61.5 55.8 58.8
Imports from USA 14.1 12.2 13.2
Fiscal Deficit (GDP percent) -0.9 -0.2 0.5
Current Account Deficit (GDP percent) 4.1 3.8 5.0
Aid from USA 0 0 0
Aid from Other Countries 0 0 0
External Public Debt 56.0 37.6 33.8
Debt Service Payments(GDP) 2.3 2.2 2.2
Gold and Foreign Exchange Reserves 15.8 15.6 15.5
Total Trade Balance -1.1 0.9 -2.9
Trade Balance with USA -10.2 -7.9 -7.6

1 Exchange rate fluctuations must be considered when analyzing data. Percentage changes calculated in Australian Dollars.
2 1998 figures are estimates based on available monthly data through October 1998.
3 Income measure of GDP.
4 Production measure of GDP. "Manufacturing" includes manufacturing, mining, utilities, and construction.

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USA Investment in Selected Industries

USA Direct Investment Position Abroad on a Historical Cost Basis-1997

(Millions of US dollars)
Category Total1

Petroleum 1,206
Total Manufacturing 7,506
January 15, 2000

Food & Kindred Products 1,271

Chemicals and Allied Products 2,394
Electric & Electronic Equipment 206
Industrial Machinery and Equipment 684
Primary & Fabricated Metals 298
Transportation Equipment 1,014
Other Manufacturing 1,639
Wholesale Trade 2,569
Banking 2,181
Finance, Insurance, and Real Estate 4,779
Services 1,805
Other Industries 6,080

TOTAL ALL INDUSTRIES 26,125

RICHARDSON ENGINEERING SERVICES, INC.
All data on this page Copyright 2000 by

1 Source: U.S. Department of Commerce, Bureau of Economic Analysis.

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Currency Exchange

Annual Average

1997 1 AUD= 0.7427 1 USD=1.350

1998 1 AUD= 0.6297 1 USD=1.591

January 15, 2001

1999 1999 2000 2000
1 AUD= 1 USD= 1 AUD= 1 USD=
January 0.6340 1.577 0.6542 1.529
February 0.6393 1.564 0.6285 1.591
March 0.6324 1.581 0.6089 1.642
April 0.6446 1.551 0.5933 1.685
May 0.6615 1.512 0.5783 1.729
June 0.6595 1.516 0.5930 1.686
July 0.6593 1.517 0.5875 1.702
August 0.6435 1.554 0.5824 1.717
September 0.6487 1.542 0.5533 1.807
October

RICHARDSON ENGINEERING SERVICES, INC.

0.6489 1.541 0.5287 1.891

All data on this page Copyright 2001 by

November 0.6395 1.564 0.5220 1.916
December 0.6418 1.558 0.5491 1.821

AVERAGE 0.6461 1.548 0.5816 1.726

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REGION: AUSTRALIA

GOVERNMENT CONTACTS
The Embassy of Australia is located at 1601 Massachusetts Avenue, N.W., Washington, D.C. 20036 (tel: 202-797-3000).
The Australian Government maintains Consulates at the following addresses:

Australian Consulate General

630 Fifth Avenue
Suite 420
January 15, 2000

New York, NY 10111

Telephone: (212) 245-4000
Fax: (212) 265-2768

Australian Consulate General

611 N. Larchmont Blvd.
Los Angeles, CA 90004
Telephone: (213) 469-4300
Fax: (213) 469-9176

Australian Consulate General

321 North Clark St.
Suite 2930
Chicago, IL 60610
Telephone: (312) 645-9440
Fax: (312) 645-1999/1912

Australian Consulate General

One Bush Street, 7th Floor
San Francisco, CA 94104
Telephone: (415) 362-6160
RICHARDSON ENGINEERING SERVICES, INC.

Fax: (415) 362-0415

All data on this page Copyright 2000 by

Australian Consulate General

Suite 800
3 Post Oak Central A.N.
1990 Post Oak Blvd.
Houston, TX 77056
Telephone: (713) 629-9131
Fax: (713) 622-6924

Australian Consulate General

1000 Bishop Street
Penthouse 507
Honolulu, HI 96813
Telephone: (808) 524-5054
Fax: (808) 531-5142

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 AUSTRALIA

REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

GENERAL INFORMATION
Population: 3,531,000

Time Zone: GMT +10 hours

Climate:
January 15, 2000

Averages Averages
Temperature Temperature
Precipitation (cm) High Low Precipitation (cm) High Low
Jan 88.9 26°C 18°C Jul 116 16°C 8°C
Feb 101 26°C 18°C Aug 76.2 17°C 9°C
Mar 127 24°C 17°C Sep 73.7 19°C 11°C
Apr 134 22°C 14°C Oct 71.1 22°C 13°C
May 127 19°C 11°C Nov 73.7 23°C 16°C
Jun 116 16°C 9°C Dec 73.7 25°C 17°C

ENVIRONMENTAL PROTECTION AUTHORITIES

Environmental Laws in Australia are developing and National Laws and Standards are being established. Each State and
Territory is responsible for legislating and administering Environmental Standard and Codes. Information is available from
the following state authority:
RICHARDSON ENGINEERING SERVICES, INC.

New South Wales Environment Protection Authority

All data on this page Copyright 2000 by

PO Box 367
Bankstown, NSW 2200
Director-General
Contact: Dr. Neil Shepherd
Telephone: 61-2-793.000
Fax: 61-2-793.0002

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REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

GOVERNMENT CONTACTS
New South Wales Department of State Development
State Office Block, Level 28
79-90 Phillip Street
Sydney, NSW 2000
Telephone: 61-2-228.3360
Fax: 61-2-228.3626

January 15, 2000

RICHARDSON ENGINEERING SERVICES, INC.
All data on this page Copyright 2000 by

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 AUSTRALIA

REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

SHIPPING

Destination: Sydney, Australia SHIPPING CHARGES**

Container Size
From Duration* Service Type 20 Ft. 40 Ft.
January 15, 2000

Los Angeles 50 Days CY/CY $3,300 $4,900

Seattle 50 Days CY/CY $3,300 $5,000
New York 50 Days CY/CY $4,000 $5,700
Miami 50 Days CY/CY $4,000 $5,900
Houston 50 Days CY/CY $4,500 $5,800

*Above shipping times include estimated landbridge shipping times to USA port of call. Variances may occur if feeder
service is involved. For example, some shipping companies use feeder services from Hong Kong or Taiwan. This service may
extend shipping times by approximately 1 week.

**Shipping Charges (shown in US$)

include:
Cost of container
Loading & unloading fees
RICHARDSON ENGINEERING SERVICES, INC.

Shipment from port to port

All data on this page Copyright 2000 by

Any associated port fees

Service charge of 6.2%

do not include:
Trucking fees from site to port/port to site
Packing fees
Unpacking fees

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REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

Shipping Companies

From Los Angeles, CA

American President Lines Booking information:

*Feeder service from Yokohama, Japan American President Lines
(LO/LO) Telephone: (800) 999-7733
Containers:
(FCL) only

January 15, 2000

Australia - New Zealand Direct Line Booking information:
Containers: ANZDIL 1
(FCL) (LCL port to port) Telephone: (800) 322-2635
Break Bulk port to port Long Beach, CA
Telephone: (310) 430-6899

BHP - International Marine Transport Booking information:

*Via train to Houston if Break Bulk or New Long Beach, CA
York if containerized Telephone: (310) 436-5032
(LO/LO)
Containers:
(FCL) only

Columbus Line Booking information:

Containers: Columbus Line, Inc.
(FCL, LCL case-by-case) Long Beach, CA
Break Bulk loads available upon Telephone: (800) 901-7447
authorization

COSCO - China Ocean Booking information:

Containers: COSCO Agencies (Los Angeles) Inc.

RICHARDSON ENGINEERING SERVICES, INC.

All data on this page Copyright 2000 by
(FCL) 606 South Olive St., #1100
Break Bulk Los Angeles, CA 90014
Oversized loads available upon Telephone: (213) 689-6785
authorization

Maersk Line Booking information:

Containers: Maersk Inc.
(FCL) only Telephone: (800) 321-8807

Nedlloyd Booking information:

Containers: Nedlloyd
(FCL) only Long Beach, CA
Rates
Telephone: (310) 495-8750
Cust. Service Outbound
Telephone: (310) 495-8702

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 AUSTRALIA

REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

Nippon Yusen Kaisha Booking information:

*Feeder service from Singapore NYK Line (North America) Inc.
Containers: 301 E. Ocean Blvd., #1500
(FCL) only Long Beach, CA 90802
Telephone: (310) 495-9849

OOCL Express Booking information:

*Feeder service from Kaohsiung, Taiwan or OOCL (USA) Inc.
Hong Kong Long Beach, CA
January 15, 2000

Containers: Telephone: (310) 499-2600

(FCL) only

Zim Container Service Booking information:

*Feeder service from Hong Kong Zim Inter Americas Service
Containers: 624 S. Grand Ave., Suite 800
(FCL) only Los Angeles, CA 90017
Break Bulk available upon authorization Telephone: (800) 310-4060
(213) 688-4600

From Seattle, WA

American President Lines Booking information:

(LO/LO) American President Lines
Containers: Telephone: (800) 999-7733
(FCL) only
Oversized loads available upon
authorization

Australia - New Zealand Direct Line Booking information:

*Via Oakland, CA by train ANZDIL 1
RICHARDSON ENGINEERING SERVICES, INC.
All data on this page Copyright 2000 by

Containers: Telephone: (800) 322-2635

(FCL) (LCL port to port) Seattle, WA
Break Bulk port to port Telephone: (206) 682-7328

BHP - International Marine Transport Booking information:

*Via train to Houston if Break Bulk or Seattle, WA
New York if containerized Telephone: (206) 441-9100
Containers:
(FCL) only

Columbus Line Booking information:

Containers: Western United Shipping
(FCL, LCL case-by-case) Seattle, WA
Break Bulk loads available upon Telephone: (206) 628-4701
authorization

COSCO - China Ocean Booking information:

Containers: Norton Lilly International
(FCL) Seattle, WA
Break Bulk Telephone: (206) 623-0930
Oversized loads available upon Fax: (201) 382-8989
authorization

Richardson’s International Construction Factors - Location Cost Manual AU-Aus-Sydn 5

 AUSTRALIA

REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

Maersk Line Booking information:

Containers: Maersk Inc.
(FCL) only Telephone: (800) 321-8807

Nedlloyd Booking information:

*Via Tacoma, WA by train or truck Rates
Containers: Telephone: (206) 382-4239
(FCL) only Cust. Service Outbound
Telephone: (206) 382-4232

January 15, 2000

Nippon Yusen Kaisha Booking information:
*Feeder service from Singapore NYK Line (North America) Inc.
Containers: 1001 Fourth Avenue, Plaza Suite 3700
(FCL) only Seattle, WA 98154
Telephone: (206) 287-0317

OOCL Express Booking information:

*Feeder service from Kaohsiung, Taiwan or OOCL (USA) Inc.
Hong Kong Seattle, WA
Containers: Telephone: (206) 624-8914
(FCL) only

Zim Container Service Booking information:

*Via Los Angeles by train Local office N/A
*Feeder service from Hong Kong
Containers:
(FCL) only

From New York / New Jersey

RICHARDSON ENGINEERING SERVICES, INC.

All data on this page Copyright 2000 by
American President Lines Booking information:
*Via West Coast by train American President Lines
*Feeder service from Yokohama, Japan Telephone: (800) 999-7733
(LO/LO)
Containers:
(FCL) only
Oversized loads available upon
authorization

Australia - New Zealand Direct Line Booking information:

*Via Los Angeles by train ANZDIL 1
Containers: Telephone: (800) 322-2635
(FCL) (LCL port to port) New York / New Jersey
Break Bulk port to port Telephone: (908) 709-1400

BHP - International Marine Transport Booking information:

(LO/LO) Long Beach, CA
Containers: Telephone: (800) 394-9153
(FCL) only

AU-Aus-Sydn 6 Richardson’s International Construction Factors - Location Cost Manual

 AUSTRALIA

REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

COSCO - China Ocean Booking information:

Containers: COSCO North America, Inc.
(FCL) Harmon Plaza, NJ 07904
Break Bulk Telephone: (203) 392-2600
Oversized loads available upon Fax: (203) 392-9678
authorization

Maersk Line Booking information:

Containers: Maersk Inc.
January 15, 2000

(FCL) only Telephone: (800) 321-8807

Nedlloyd Booking information:

*Via Long Beach by train New York
Containers: Telephone: (201) 863-0300
(FCL) only

Nippon Yusen Kaisha Booking information:

*Feeder service from Singapore NYK Line (North America) Inc.
Containers: NY/NJ Export
(FCL) only Telephone: (201) 330-3110

OOCL Express Booking information:

*Feeder service from Kaohsiung, Taiwan or OOCL (USA) Inc.
Hong Kong New York
Containers: Telephone: (212) 428-2200
(FCL) only

Zim Container Service Booking information:

*Feeder service from Hong Kong Zim Inter Americas Service
Containers: One World Trade Center, 16th Floor
(FCL) only New York, NY 10048
RICHARDSON ENGINEERING SERVICES, INC.
All data on this page Copyright 2000 by

Telephone: (800) 895-7447

Fax: (212) 524-1802

From Miami, FL

American President Lines Booking information:

*Via San Pedro by train American President Lines
(LO/LO) Telephone: (800) 999-7733
Containers:
(FCL) only
Oversized loads available upon
authorization

Australia - New Zealand Direct Line Booking information:

*Via Los Angeles by train ANZDIL 1
Containers: Telephone: (800) 322-2635
(FCL) (LCL port to port) Local office N/A

Richardson’s International Construction Factors - Location Cost Manual AU-Aus-Sydn 7

AUSTRALIA

REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

BHP - International Marine Transport Booking information:

*Via Charleston by train Long Beach, CA
(LO/LO) Telephone: (800) 394-9153
Containers:
(FCL) only

COSCO - China Ocean Booking information:

Containers: COSCO North America, Inc.
(FCL) Harmon Plaza, NJ 07904

January 15, 2000

Break Bulk Telephone: (203) 392-2600
Oversized loads available upon Fax: (203) 392-9678
authorization

Maersk Line Booking information:

*Feeder service from Yokohama, Japan Maersk Line Agency
Containers: 8400 N.W. 52nd Street
(FCL) only Suite 101
Miami, FL 33166
Telephone: (305) 220-6660
Fax: (305) 591-3651

Nedlloyd Booking information:

*Via Long Beach by train Local office N/A
Containers:
(FCL) only

Nippon Yusen Kaisha Booking information:

*Feeder service from Singapore NYK Line (North America) Inc.
Containers: New York
(FCL) only Telephone: (201) 330-3110

RICHARDSON ENGINEERING SERVICES, INC.

All data on this page Copyright 2000 by
OOCL Express Booking information:
*Feeder service from Kaohsiung, Taiwan or OOCL (USA) Inc.
Hong Kong Miami, FL
Containers: Telephone: (305) 599-9358
(FCL) only

Zim Container Service Booking information:

*Feeder service from Hong Kong Zim American Israeli
Containers: Shipping Co.
(FCL) only 1007 North American Way
Miami, FL 33132
Telephone: (305) 372-5201
Fax: (305) 372-9675

AU-Aus-Sydn 8 Richardson’s International Construction Factors - Location Cost Manual

 AUSTRALIA

REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

From Houston, TX

American President Lines Booking information:

*Via West Coast by train American President Lines
*Feeder service from Yokohama, Japan Telephone: (800) 999-7733
(LO/LO)
Containers:
(FCL) only
Oversize loads available upon authorization
January 15, 2000

Australia - New Zealand Direct Line Booking information:

Via Los Angeles by train ANZDIL 1
Containers: Telephone: (800) 322-2635
(FCL) (LCL port to port) Local office N/A
Break Bulk port to port

Columbus Line Booking information:

Containers: Biehl and Company
(FCL, LCL case-by-case) Houston, TX
Break Bulk loads available upon Telephone: (713) 690-7200
authorization

COSCO - China Ocean Booking information:

Containers: Norton Lilly International Inc.
(FCL) Houston, TX
Break Bulk Telephone: (713) 447-0800
Oversized loads available upon Fax: (203) 392-9678
authorization

Maersk Line Booking information:

RICHARDSON ENGINEERING SERVICES, INC.

*Via Long Beach by train Maersk Inc.

All data on this page Copyright 2000 by

Containers: Telephone: (800) 321-8807

(FCL) only

Nippon Yusen Kaisha Booking information:

*Via Los Angeles by train NYK Line (North America) Inc.
*Feeder service from Singapore Houston, TX
Containers: Telephone: (713) 961-4115
(FCL) only

OOCL Express Booking information:

*Via San Pedro by train OOCL (USA) Inc.
*Feeder service from Kaohsiung, Taiwan or Houston, TX
Hong Kong Telephone: (713) 880-1127
Containers:
(FCL) only

Zim Container Service Booking information:

*Feeder service from Hong Kong Zim American Israeli
Containers: Shipping Co. Inc.
(FCL) only 1900 North Loop West, Ste. 600
Houston, TX 77018
Telephone: (713) 688-7447

Richardson’s International Construction Factors - Location Cost Manual AU-Aus-Sydn 9

AUSTRALIA

REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

CREW RATES
CREWS USED IN RES CREW
THE RES ACCOUNT # RICHARDSON CREW/CRAFT NAMES IN US DOLLARS
2-0 ASBESTOS WORKER CREW $27.76

3-0, 6-0 THROUGH 10-0 CARPENTER CREW 25.48

January 15, 2001

3-0 PLACING UNSUPPORTED CONCRETE CREW 24.14

3-0 PLACING SUPPORTED CONCRETE CREW 24.51

3-0 CONCRETE FINISHING CREW 23.98

3-0 CONCRETE TILTUP CREW 26.06

4-0 MASONRY CREW 25.88

5-0 IRONWORKER CREW 32.66

3-0, 6-0 THROUGH 10-0 LABORER CREW 24.14

9-0 PAINTING CREW 30.11

9-0 PLASTERING CREW 24.80

15-0 MECHANICAL CREW 29.99

RICHARDSON ENGINEERING SERVICES, INC.

All data on this page Copyright 2001 by
15-0 PLUMBING CREW 28.83

15-0 INSULATION CREW 26.96

16-0 ELECTRICAL CREW 29.58

7-0, 15-0 SHEET METAL CREW 28.18

100-0 PROCESS EQUIPMENT CREW 31.81

3-50 PROCESS IRONWORKER 35.43

3-50 PROCESS CARPENTER 25.69

3-50 PROCESS LABORER 23.82

The conversion rate used is 1.82 Australian Dollars equals 1 U.S. Dollar.
The above rate includes Fringe Benefits, Overhead and Profit.

AU-Aus-Sydn 10 Richardson’s International Construction Factors - Location Cost Manual

 AUSTRALIA

REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

LOCATION FACTORS
July 15,15,
January 2000
2000
RICHARDSON ENGINEERING SERVICES, INC.
All data on this page Copyright 2000 by

ENGINEERING EQUIPMENT: 1.00 X 0.80 X 0.75 = 0.60 CALL 60%

FIELD MATERIAL: (1.00 X 0.80 X 0.10) + (1.00 X 0.20 X 0.55) = 0.19 CALL 20%

LABOR: (100 X 0.80 X 0.15) + (1.00 X 0.20 X 0.45) = 0.21 CALL 20%

Note: Assume Engineering Equals 80% Local, 20% Import, Field Material 90% Local, 10% Import.

Richardson’s International Construction Factors - Location Cost Manual AU-Aus-Sydn 11

AUSTRALIA

REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

General Assumptions

% Building Cost = 20% (BLDNG)

% Of Building Cost (Labor) = 45% (BLABOR)
% Of Building Cost (Field Material) = 55% (BLDNGFM)

% Process Cost = 80% (PROC SYS)

January 15, 2001

% Of Process Cost (Labor) = 15% (PLABOR)
% Of Process Cost (Engineered Equipment) = 75% (PCEE)
% Of Process Cost (Field Material) = 10% (PCFM)

AUSTRALIAN - Specific Assumptions

Sourcing Data
% Engineered Equipment Local = 80% (EEL)
% Engineered Equipment Imported = 20% (EEI)

% Field Material Local = 90% (FML)

% Field Material Imported = 10% (FMI)

Import Add On Costs

RICHARDSON ENGINEERING SERVICES, INC.

% Duty = 20%

All data on this page Copyright 2001 by

% Freight = 20%
% VAT = 0%
% Other (Local/Provincial Taxes, Fees) = 0%

Local Material Factors

Local Material Index = 1.30

Labor Data
Weighted Average Local Labor Rate = $27.49 *
Weighted Average Base Labor Rate = $50.51

Labor Performance Factor = 1.60 (PF)

*Exchange rate 1.82 A$ = 1 US$

AU-Aus-Sydn 12 Richardson’s International Construction Factors - Location Cost Manual

 AUSTRALIA

REGION: AUSTRALIA CITY: SYDNEY (New South Wales)

INDEX & LOCATION FACTOR FORMULAS

15, 2001
15, 2000

Index Formulas
January

LI = Labor Index
July

IMI = Import Material Index

LMI = Local Material Index

LI = 1.00 x $27.49 x 1.60 = 0.87

$50.51

IMI = 1.00 + 0.20 + 0.20 + 0.00 + 0.00 = 1.40

1.00 1.00 1.00 1.00

LMI = 1.00 x 1.30 = 1.30

1.00
RICHARDSON ENGINEERING SERVICES, INC.
All data on this page Copyright 2001 by

Location Factor Formulas

LLF = Labor Location Factor

EELF = Engineered Equipment Location Factor
FMLF = Field Material Location Factor
LF = Location Factor

LLF = ((1.00 x 0.20 x 0.45) + (1.00 x 0.80 x 0.15)) x 0.87 = 0.18

EELF = (1.00 x 0.80 x 0.75 x 0.20 x 1.40) + (1.00 x 0.80 x 0.75 x 0.80 x 1.30) = 0.79

FMLF = (1.00 x 0.80 x 0.10 x 0.10 x 1.40) + (1.00 x 0.80 x 0.10 x 0.90 x 1.30) +
(1.00 x 0.20 x 0.55 x 0.10 x 1.40) + (1.00 x 0.20 x 0.55 x 0.90 x 1.30) = 0.25

LF = 0.18 + 0.79 + 0.25 = 1.22 Call 1.22

Richardson’s International Construction Factors - Location Cost Manual AU-Aus-Sydn 13

 RICHARDSON ENGINEERING SERVICES, INC.

ACKNOWLEDGEMENTS & BIBLIOGRAPHY

The following is a list of individuals and organizations whose input made the publication of this manual possible. We would
like to express our sincerest appreciation to these, and others not listed, for their time and cooperation.

Terry Adams K. M. Featherstone Anghel Patrascu

Phil Angel Ing. Hugo Figuroa M. Bernie Pietlock
J. B. Taylor W. G. Fischer Jesus Cruz Cervantes Rendon
David Barken Jim Guthrie Jayant Sathe
January 15, 2000

O. J. Bolduc Octavio Garzia John Spray

Roger Charles Jeffrey R. Kent Salah M. Al Sulaim
Angel Corcega Ing. Alberto Leon Lomeli Bhagwan Uttamchandani
Maureen Cronin Mario I. Miranda Leopoldo Varela A.
John R. Davenport Shinkichi Nakata Antonio Villagomez
Roberto Orellana Hugo Zbinden

AACE International
Bureau of Inter-American Affairs
International Cost Engineering Council
U.S. Department of Commerce
U.S. Department of State
RICHARDSON ENGINEERING SERVICES, INC.
All data on this page Copyright 2000 by

BIBLIOGRAPHY
Compton's Interactive Encyclopedia™, Compton's New Media, Inc., 1994.

Encarta™ '95, Microsoft Corporation, 1995.

NTDB The Export Connection®, National Trade Data Bank (July 1994 - December 1999), U.S. Department of Commerce,
Economics and Statistics Administration, Office of Business Analysis.

PC Globe® Maps 'n' Facts™, Brøderbund Software, Inc., 1993.

With the exception of the History and People sections of Poland, the country data was taken from the NTDB The Export
Connection®, U.S. Department of Commerce. To avoid any misinterpretation, most of the information was reproduced
verbatim.

Richardson’s International Construction Factors - Location Cost Manual Ackn 1

NOTES

2 Richardson’s International ConstructionFactors - Location Cost Manual