Master Builder WA Spring 2018

OFFICIAL MAGAZINE OF THE MASTER BUILDERS ASSOCIATION OF WESTERN AUSTRALIA VOLUME 15 | NUMBER 3 | SPRING 2018

WA’S BEST

PROJECT OPTUS STADIUM

Why builders need champions to speak up for them

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Builders hang on for promised economic recovery

17

Full steam ahead at construction awards

19

Imperial splendour in Broome

24

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CONTENTS

OF FIC IAL MA GA ZIN E

OF TH E MA ST ER BU ILD ER S VOLUME 15

| NUMBER

AS SO CIATIO

3 | SPRING 2018

N OF WE ST ER N

AU ST RA LIA

WA’S BES T

PROJECT OPTUS STADIUM

On the Cover

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Why builde rs need cha mpions to speak up Builders han for them g on for pro mised eco Full steam nomic rec overy ahead at constructio n awards Imperial sple ndour in Bro ome

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WA’s Best Project Optus Stadium WHY BUILDERS NEED CHAMPIONS TO SPEAK UP FOR THEM Speaking up for our industry................................................................................................ 15

BUILDERS HANG ON FOR PROMISED ECONOMIC RECOVERY Builders left waiting to benefit from WA’s economic recovery............................................... 17

FULL STEAM AHEAD AT CONSTRUCTION AWARDS Master Builders-Bankwest Excellence In Construction awards 2018................................... 19

IMPERIAL SPLENDOUR IN BROOME Majestic night for Kimberley Pilbara awards......................................................................... 24

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15 17 19

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MBAWA BOARD OF MANAGEMENT: President: Rob Spadaccini Vice President: David Crothers Treasurer: Grant Burgess Immediate Past President: John Ripp Board Members: Philip Kemp, Jason Kunkler, Steve McConkey, Isla McRobbie, Dan Perkins, Jack Pleiter, Robert Shaw, Michael Vermey, Michael Van Dongen SENIOR STAFF: Director: Michael McLean Legal Manager: Charles Anderson Construction Director: Kim Richardson Housing Director: Jason Robertson Business Director: Graeme Dix Marketing Manager: Kelly Dewar-Matusik Sales Manager: Wayne Tardrew Events Manager: Monique Milne Technical Advisor: Romina De Santis Training Manager: Jess Sethi Communications Coodinator: Susan de Ruyter HEAD OFFICE: 35-37 Havelock Street, West Perth WA 6005 Post: PO Box 167, West Perth WA 6872 Phone: (08) 9476 9800 (Country) 1300 550 262 Fax: (08) 9476 9801 Email: mba@mbawa.com Website: www.mbawa.com REGIONAL BRANCHES: Albany-Great Southern: Linda Gibbs Ph: (08) 9841 6232 Bunbury-South West: Geoff Bosustow Ph: (08) 9721 6547 Geraldton-North West: Paul Kerr Ph: (08) 9921 5061 Esperance: Doug Backhouse Ph: 0437 184 366

SUBSCRIPTION ENQUIRIES: Master Builder is available for subscription at a cost of $55/ year. Contact Master Builders’ reception via email at mba@mbawa.com for further information.

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CONTENTS

In this issue FOREWORDS President’s File............................................................. 7 Director’s File............................................................... 8 From the Hill............................................................... 11

REPORTS General News............................................................ 12 Branches................................................................... 18

AWARDS Excellence In Construction Awards........................... 19 Kimberley Pilbara Awards.......................................... 24 Robert Law Award..................................................... 26

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UPDATES Legal.......................................................................... 27 Training...................................................................... 28 Health........................................................................ 29 Insurance................................................................... 30 Industrial Relations.................................................... 31 Housing..................................................................... 34

MEMBERSHIP Personal Pars............................................................ 35 Members’ Savings Scheme....................................... 36

BUILDING BUSINESS Superannuation speak............................................... 40 Cashflow during redundancy..................................... 40

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ADVERTORIAL FEATURES Bathroom Trends....................................................... 32

Published by: ark:media Phone: +61 7 5629 5310 Email: marketing@arkmedia.net.au Web: www.arkmedia.net.au Managing Editor: Susan Guilfoyle Design Team: Andrew Crabb, Arlen Chidzey Advertising Sales: Rose Delosreyes, Scott Sharples Paul Baird, Daniel Rutland Advertising Manager: Yvonne Okseniuk

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Master Builder is the official publication of The Master Builders Association of Western Australia. It is produced four times per year and published by ark:media. Master Builders Association of Western Australia was established in1898 and is the state’s oldest building industry organisation.

The MBAWA is part of the Australia-wide Master Builder movement. Master Builder is produced to keep members informed of matters affecting them.

Opinions and/or statements in any editorial and/or advertisements are not necessarily those of the publisher and/ or the MBAWA. The publisher reserves the right to reject any material deemed unsuitable for publication.

Other than for the purposes of and subject to the conditions prescribed under the copyright Act 1968, no part of Master Builder may in any form or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced, stored in a retrieval system or transmitted without prior written permission from the MBAWA or ark:media.

MASTER BUILDER SPRING 2018

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PRESIDENT’S FILE

A slimmer and smarter planning system for WA The release by Planning Minister Rita Saffioti of the Modernising WA’s Planning System Green Paper gives Master Builders and other interested parties the opportunity to comment on how we would like our planning regime to operate in the future.

Experienced planner Evan Jones has done an independent review of the state’s planning system and looked at ways to make it more efficient, transparent and readily understandable.

Mr Jones and his team have done a good job identifying the complexities and challenges of our planning system - but that’s the easy part. The more important part is recommending meaningful and practical improvements, especially to the planning approvals process which is frustrating for builders and our clients.

His recommended reforms come under five key banners: • A strategically led system.

• A legible planning system.

• A transparent planning system.

• An efficient planning system.

• Planning consolidated and connected smart growth.

Robert Spadaccini President

ACKNOWLEDGING THE SUPPORT OF OUR 2018 PARTNERS

Master Builders supports all the recommendations proposed by Mr Jones, especially speeding up the planning approvals process. Various proposals, such as electronic lodgements, could help to eliminate inconsistency between local councils, provide greater transparency and better guidelines for building applications.

It will be important for this review to de-mystify and streamline the planning process. The focus on strategic planning and expediting mixed-use developments around Metronet projects is fine but the main issue for most builders is the day-to-day building approvals process. This is where the Department of Planning needs to take a leadership role and provide clear direction to local government.

Insurance Partner

Education and training will be critical to manage expectations and minimise disputes between stakeholders. The retention of Development Assessment Panels is welcomed along with more accountability and transparency in their decision making.

The skill set for members of the WA Planning Commission has been updated, which will help attract capable people. We support the initiatives of a prelodgement advice system and independent planning

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reviewer to reduce the chance of applications being rejected, but more detail on how they will operate is needed.

Master Builders’ submission in response to the Green Paper emphasised the importance of prescribing reasonable timelines in councils approving planning applications, especially for single detached homes which vary only slightly from the existing R Codes. We believe 30 days turn-around is adequate.

We also promoted the designation of urban infill locations, but this would need to align to the government’s Affordable Housing Strategy.

The proposed inclusion of a smart growth planning policy makes sense and should be applied across all regions in conjunction with the long-term plans of Infrastructure WA. We believe the Green Paper has identified the key planning issues and Mr Jones should be commended for making practical recommendations to resolve them.

Having a concise State Planning Policy framework across state, regional and local levels is critical to ensuring the planning framework can readily adapt to building methods embracing innovation and emerging technologies.

The proposed measures to speed up development applications are vital and long overdue. Delays in approvals have a hugely negative impact on WA’s third largest employment sector.

Effective mechanisms for monitoring performance are also overdue. It is a sound recommendation to have local governments report annually on their planning responsibilities.

The trend towards infill developments, group dwellings and apartment living make planning changes timely and appropriate. We hope for a follow up in three to five years to assess whether further measures are required to assist builders, developers, home-buyers, corporate clients and the community.

With most delays to building approvals being caused by planning issues, this review is potentially a game changer. Master Builders has lodged a comprehensive response and we are now keen to consult with Ms Saffioti in developing her White Paper, which will contain the legislative changes the Government is likely to take. As always, feedback from members will guide our response.

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DIRECTOR’S FILE

Political summit reinforces Canberra connection Whether we like it or not, politics plays an increasingly important role in our industry. That is one of the reasons Master Builders Australia held its first political summit in Canberra in June.

The participants included Treasurer Scott Morrison and his Assistant Minister Michael Sukkar, Labor deputy leader Anthony Albanese, Assistant Minister for Vocational Education and Skills Karen Andrews and shadow minister Doug Cameron, Assistant Minister for Science Jobs and Innovation Zed Seselja, shadow assistant minister for small business Julie Owens, One Nation leader Pauline Hanson, Liberal Democrats leader David Leyonhjelm, and Australian Conservatives leader Cory Bernadi.

Michael McLean Executive Director

ACKNOWLEDGING THE SUPPORT OF OUR 2018 PARTNERS

As one of about 75 attendees from MBAs nationwide, several things were highlighted to me, such as: • The important role Master Builders Australia plays and the respect for it in Canberra from all political parties.

• The policy differences emerging in the lead-up to the next federal election between the Coalition and Labor parties on important issues like industrial relations, taxation and skills training.

• The difficulties faced by the Government in getting majority support from the Senate, which now has seven minority parties with different agendas effectively holding the balance of power.

Influencing these individuals has been challenging and time consuming from both a political and lobbyist’s perspective.

• The need to keep our politicians, including back benchers and minority parties, informed of what is needed in our industry and our feedback on proposed legislative reforms. Most MPs are genuinely interested in hearing from their constituents, especially industry associations, so it is critical that we inform them about our industry and the likely impact of their policies.

It was also useful to have three senior journalists from the Financial Review, The Australian and the Canberra Bureau of AAP at the summit to give insights into the political scene. They were amazed at the number of movements across the minor political parties following defections and new persons being elected.

Insurance Partner

Each of the politicians appreciated the opportunity to highlight their party’s views on issues affecting the

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economy and our industry. All were keen to recognise the importance of the building and construction industry. This was not surprising because our industry accounts for 10 per cent of the economy and contributes $200 billion in revenue each year across a workforce comprising 1.1 million people.

With the next federal election looming, which is likely to be extremely close, Master Builders is keen to ensure our policy priorities are well defined and well understood by all political parties. Policies on the agenda include: • Taxation – negative gearing, capital gains tax, company tax, income tax and the GST. • Industrial relations – the future of the ABCC and Registered Organisations Commission.

• Security of payment – whether to harmonise state and territory legislation.

• Housing affordability.

• Infrastructure.

• Skills development and apprenticeship training.

• Small business red tape reduction.

The election is expected in April but it could be called at any time, so we are developing our campaign.

We plan to engage with politicians and members are encouraged to do likewise on issues affecting their businesses.

Although Master Builders’ first summit exceeded my expectations, I believe next year’s will be even better because we will probably devote more time to important topics and discussion from members.

It also will coincide with our inaugural Business Awards in June, which will be different from our National Housing and Construction Excellence Awards. Stay tuned for details on how to nominate your company.

Master Builders will continue to be at the front of the queue of lobbyists engaging with ministers and influential politicians from all parties. In representing one of the most significant industries in the country, a lot of doors open to us. The challenge is always to influence and persuade with well-researched, logical and easy-to-understand arguments. With the quality of our staff and members who participate on our policy committees, we are up for this challenge.

MASTER BUILDER SPRING 2018

ADVERTORIAL

CONSTRUCTION TRAINING FUND (CTF) CASH INCENTIVES FOR EMPLOYERS The CTF can reduce the costs of employing apprentices in WA’s building and construction industry for MBA members.

The CTF has a range of incentives for eligible employers of apprentices in construction trades, with up to $25,000 in cash now available to help reduce the costs of adding a new apprentice to your business.

The first is paid after probation and six months of continuous employment; the second at the half-way point of the indenture and the final payment is made after successful completion of the qualification.

The minimum standard grant available to an eligible employer is $3,000 (for a 12-month traineeship), rising to a maximum of $10,000 for a 48-month apprenticeship in core construction trade areas.

MBA members will also receive the benefits of the grant from the CTF if hosting an apprentice through a group training organisation (GTO). The GTO claims the grant on your behalf and uses this funding to reduce the cost of employing and training the apprentice.

This will result in a reduction in your net costs of hiring the apprentice through the GTO. Look for the note on the GTO’s invoice that shows your apprentice is being supported by the Construction Training Fund.

In addition to the standard grants: CTF now provides a Trade Bonus of up to $4,000, a bonus of up to $2,000 to an employer of an apprentice that has successfully completed a recognised Certificate II VET-in Schools or pre-apprenticeship qualification.

CTF is also providing an extra bonus of up to $2,000 to eligible employers for the employment of women in non-traditional trades and a Mature Age (21 years or older) bonus of up to $2,000.

Visit ctf.wa.gov.au/Industry/Funding Support or call 9244 0100 for more information about the CTF’s apprenticeship grants and other support programs for the construction industry.

It’s your training fund.

Additional supplements for employment of indigenous and regional trainees/apprentices bring the maximum grant available to a total of $25,000.

Receive up to $25,000 to help train an apprentice.

Apprentices bring leading edge skills to your business and they help strengthen the building and construction workforce.

That’s why the Construction Training Fund provides up to $25,000 in grants for you to reduce the cost of training each apprentice you employ.

For details on eligibility, visit ctf.wa.gov.au or call 9244 0100.

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FROM THE HILL

Leading the way in housing Master Builders utilises its representation of building and construction industry members from right across WA to provide wide-ranging and diverse expert stakeholder views which are very valuable to government.

Building homes creates a precinct, but the lived experiences people have within each precinct are also important. We like to attend to people first. “People.

Place. Home.” This is the approach we take to determine what different demographics want. Then we create products that suit them.

Peter Tinley Housing Minister

It’s a great privilege to be the Housing Minister in the McGowan Government and oversee a $14.5 billion economic agency that delivers social outcomes.

My personal ambition is to make sure housing developments are leading the way with regard to what’s possible in the built form and how they contribute to communities.

In order to achieve this level of innovation, we need to progress planning reform. This will give us the opportunity to deliver products that aren’t generally available and the outcomes will very much depend on how we partner with the private sector.

We currently work with the private sector to produce greenfield and brownfield developments and have partnered with PEET on a 4000-lot development in Brabham. The vast majority will go to market, allowing us to provide social housing.

I see government having an essential role as a collaborator in this arena and liaising with a constellation of bodies, like Master Builders, will be fundamentally important when determining where we take reform.

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Our top three challenges are: • Delivering product to meet the desired affordability and social needs outcomes of key demographics such as first home-buyers, seniors and downsizers.

• Giving the second bottom quartile as much opportunity as we can and attend to the highest needs group which is typically single older women.

We call them OWLs – older women low income.

When many of these women reach 65, they don’t have the benefits of a super scheme. They may still be working and happy to do so, but they are an overrepresented group looking for social housing. What do they want? A townhouse, apartment, village-style accommodation. There’s a product required for their needs.

• When it comes to social housing, we haven’t been able to reach that vertical integration. We’re a good social landlord, but we need to look at how we intervene.

There are now opportunities to extend our vertical integration goals through the Department of Communities and develop a case management model.

We call it a vertically integrated cross-subsidised model.

As an example, we could build 100 homes with the private sector of which 70 go to market at the best value we can get, 20 are genuinely affordable and 10 will provide social housing. It’s the profits from initiatives like this that will fund the provision of social housing.

Subsidies also need to be applied somewhere.

Housing provides a cross-spectrum product using partnerships with the private sector from house and land packages through to inner-city apartment living.

My view of affordable is $330,000 to $380,000.

There’s a gap in the market regarding how people can finance their homes.

We know that with all the costs and the way credit lending is going at the moment, it takes about 11.5 years for a young couple to afford a house deposit.

Mortgage lender’s insurance is also a major impost.

Keystart, which has been around since 1989, has provided more than 100,000 affordable loans. It was a bit of a risk in its day. We currently have about 18,000 loans managed by Keystart, which has never cost $1 of public money ever and is providing funding options for affordable housing to those lower quartile families.

We’re getting people in homes faster than they would in the current environment.

Life choices now are different. We’re detecting greater acceptance from younger people to rent for lifestyle in precincts that suit them whilst they contemplate their futures.

I think people should not embark on home ownership lightly. It needs to fit their lifestyle choices in a social and professional sense. We know a lot about urban design.

The dwelling you sleep in isn’t the sole confines of the community you live in.

Housing affordability affects renters as much as those who want to purchase. Home ownership is important, but right-sized home ownership is fundamentally important. Land supply is one aspect of housing affordability. It’s significant, but not the predominant issue.

In a typical house and land package, land costs around 52 percent of the total price. Take the 80square metre blocks in Ellenbrook. If land is the key piece, then we need to unlock more value out of that land. It’s not the rate of land supply, it’s the way we unlock the product.

The Department of Communities Housing will release 1500 blocks over the next four years. That said, if the market is not there, we’re not releasing it.

There needs to be innovation in planning and land supply. We need to be continually moving the dial in relation to planning reform – I understand it’s part of Master Builders’ agenda and it’s part of mine. Let’s lead the way in terms of what’s possible regarding the built form’s contribution to communities. The keys to success are innovation in the built form, planning reform and in making sure the Department of Communities Housing has a unique opportunity to work with local governments and statutory authorities to deliver products and financing deals that aren’t typically available.

Industry bodies like Master Builders are fundamentally important to testing and adjusting where we’d like this agenda to go. I very much look forward to engaging with their qualified, professional committees. We are up for this challenge.

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REPORTS

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MASTER BUILDER SPRING 2018

REPORTS

Nationwide report on security of payment Denita Wawn, CEO Master Builders Australia

Master Builders Australia welcomed the release in May of the report by John Murray AM following a comprehensive review of security of payment regimes operating around Australia.

“Everybody who is entitled to be paid, should be paid.

Security of payment is a vital function as it protects all building industry participants and ensures that businesses, and therefore their workers, get paid,” Denita Wawn, CEO of Master Builders Australia said.

“The 300+ page report is a comprehensive contribution to what is an important issue for many participants in the building and construction industry, right up and down the supply and contracting chain.

“Mr Murray should be commended on the extensive work undertaken to complete the report which is a welcome contribution to this policy debate.

“Security of payment law assists in helping industry ensure businesses receive payment when due, however the various regimes have become more complex and divergent in recent years.

“Master Builders has long supported the goal of greater uniformity and consistency of security of payment law across the states and territories to increase industry understanding, clarify uncertainty, reduce complexity and boost payment compliance outcomes.

“The history of security of payment law shows that more regulation does not always mean better outcomes on the ground, particularly for small subcontractors, and urged all stakeholders to consider the report’s 86 recommendations in a sensible and practical way.

“We will carefully consider the report and its recommendations following extensive consultation with our 32,000 members across the country. Naturally there will be a range of views given the existing differences from one jurisdiction to the next, and we hope the focus can be on finding common ground.”

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13

REPORTS

Brad flies to the aid of MATES

Experts tackle WA’s prospects

What’s the next step for someone who has been an airport boss for nine years?

It may not seem like an obvious career move but Brad Geatches recently made the shift from running Perth Airport to CEO of MATES in Construction WA. The links between airport management and suicide prevention may not be clear but Mr Geatches’ earlier job as CEO of an underground coal mining company gives a better clue to his experience with wellbeing issues for employees in tough work environments.

Even so, Brad admits he wasn’t fully prepared for the work of MATES in reducing the high rate of suicide in the construction industry.

“I am finding the circumstances of the people we are helping very confronting,” he said.

“While the suicide statistics are concerning, it’s not until you experience first-hand the desperation of the people who come to us for help that you fully appreciate what MATES does and what’s at stake.

“Two hours into my role, I witnessed one of our case managers most likely saving the life of a man who called our 24/7 helpline.

New MATES CEO, Brad Geatches (l), with Master Builders’ director, Michael McLean.

“We are very grateful to Master Builders for their support in raising awareness about mental health and for their assistance with fundraising initiatives.

“While everyone I speak to in the industry seems to understand the importance of the mental health and suicide issues and applaud what MATES does, the financial support from companies in the industry needs to be better.

“One of the big selling points in talking to Government is that our program has industry support.”

Mr Geatches replaces Godfrey Baronie, who is continuing with MATES part-time until his retirement at the end of the year.

More than 100 Master Builder members had a glimpse of economic times ahead while looking out across the timeless Swan River at the Master Builders-Bankwest Economic forecasting breakfast in June.

Experts at the event, held at Beaumonde on the Point, were Alan Langford, Bankwest chief economist and Anthony Kannis, project director at METRONET. They gave the audience an overview of the next 12 months, decoding the State Budget and providing key information relevant to the WA building and construction industry. Bankwest, James Hardie, Kleenheat and MBA Insurance Services sponsored the event.

“His small business employing up to five workers had failed and the bank had foreclosed on the family home.

He had decided that if he ended his life at least his family could stay in their home.

“Our case manager established a plan for him and got him connected with the help he needed, including help for his family.”

Mr Geatches said every week at least one person was referred to MATES in critical need of help. The notfor-profit group currently has 22 construction industry workers in its program and has looked after 240 people in the past year.

He plans to use his commercial background to deal with funding gaps which put the organisation’s future at risk and create a reliable, long-term funding solution.

“I’m taking every opportunity to highlight the human face of this crisis to everyone in the industry and show that MATES is making an enormous difference,” Mr Geatches said.

14

MASTER BUILDER SPRING 2018

REPORTS

Speaking up for our industry

Jason Robertson, Housing Director

Advocacy is a term often used by not-for-profit groups but what is it and, more importantly, what is the value of it?

Advocacy generates pressure for change. Master Builders has long taken the lead in informing the public on matters directly and indirectly affecting them. When pushing to keep the First Home Owners’ Grant, we spoke out about the benefits to both the industry and the public.

Effective advocacy enables organisations to influence debate on important issues at a societal level, ensuring those they represent have a voice on the policies and legislation that affect their businesses and lives.

Equally, Master Builders has a strong voice to better inform the public on contentious issues such as security of payment, industrial relations and safety.

Our members’ support on our advocacy is especially critical in the current economic climate and in areas where the government is sensitive to criticism. As a principal lobbyist with Master Builders, I can say confidently we will continue to speak plainly and forcefully where needed. This is achieved by having strong membership and constant member engagement.

Advocacy includes research, lobbying and education for both an association’s members and the wider Master Builders have been advocates for 120 years and we aim to continue for community to help guide public policy. hundreds more.

Simply put, advocacy is the No1 way not-for-profit associations advance the issues their members care about - with the goal of influencing positive change.

Advocacy is the principle foundation on which Master Builders, as the peak industry body for the building and construction sector, is built upon (pun totally intended).

Our advocacy work covers a vast range of issues and it is critical to our promotion of a healthy, sustainable environment for our members to operate within and continue to make a strong contribution to the West Australian economy and society.

The value of advocacy cannot be easily measured, nor is it always possible to identify the true impact of positive change brought about by successful advocacy.

Many of Master Builders’ advocacy successes, such as the Construction Training Fund levy changes and the First Home Owners’ Grant retention, took many years of hard work and achieved important changes to laws and policies.

A key to success is bridging the divide between service delivery and advocacy.

Service delivery alone can’t achieve large-scale change at a societal level, it must be combined with advocacy. For example, engaging with government on behalf of a member who has a building approval issue is a vital service - but advocacy magnifies the result by ensuring the systemic cause of the problem is resolved.

Master Builders has seen this time and time again. We have helped individual members get the desired result on issues which point to policy changes likely to benefit many more.

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We’re the only specialist construction insurance broker whose profits go directly back into the industry.

Jeff Concanen WA State Manager

Part of advocacy is ensuring the policy makers understand the impact of their decisions. With our industry having more small businesses than any other, good advocacy sees policy developed or changed to best reflect the needs of small business, employers and individuals.

In terms of value, Master Builders has seen advocacy result in members saving vast sums on building projects. Our assistance in legal matters saves members not only money but gives peace of mind.

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REPORTS

Making an entrance The new-look lobby at Construction House is becoming a local attraction as visitors from other companies get inspiration for their own improvements.

The upgrade, valued at $120,000, was completed ahead of schedule by Encon and officially opened in June with a celebration for Master Builders’ staff, Board members and other building tenants.

Encon director Mike Van Dongen said the design honoured the origins of Construction House and the purpose of Master Builders by using raw materials such as timber and concrete.

“We felt the building needed a meeting place, an interactive space where visitors and occupants could meet, chat and relax. The intent was to encourage people from different organisations within the building to get to know each other at the common meeting place,” he said.

Databuild Adv NZ 215x122.5 PRESS copy.pdf

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19/12/17

1:28 pm

Thanks to Laminex, who donated materials for the wall cladding, as well as MR Cabinets, Protecta Group and Distinct Plastering in partnership with Regency Plaster Finishes for their discounted services.

MASTER BUILDER SPRING 2018

REPORTS

Builders left waiting to benefit from WA’s economic recovery Experts say the West Australian economy is improving but a lot of builders can’t see it yet.

The state has been through several grim years, leading to its worst on record for 2016-17, said Deloitte Access Economics recently. However, they announced recovery had begun.

They predicted wages, retail sales and population growth would improve through this year and accelerate into 2019-20.

“These are primarily civil construction projects and there is not a major scope for commercial works,” he said.

“The upswing is not going to come quickly. We are still giving advice on making redundancies and some builders are not exercising their usual due diligence on assessing the commercial risk of a construction project in the hope it is viable for them in times of tight work volumes and tough competition.

So why is the construction industry still struggling?

A glimmer of hope for commercial construction comes from the planned upgrades to Perth’s major shopping centres. The recent completion of the Mandurah Forum redevelopment followed by Whitfords, Innaloo and Carousel then upgrades to Morley Galleria, Garden City and Karrinyup offer some hope of boosting work levels.

The West Australian’s Group Business Editor Ben Harvey gave an explanation in a recent article, saying: “While the economy as a whole has come out of the woods, the all-important construction and new homes sectors are yet to emerge.

All are being transformed into entertainment, commercial and residential hubs but Mr Richardson says it will happen on a measured schedule rather than bringing an immediate flood of construction.

“The mining and oil and gas giants create wealth but that money only really starts flowing through the economy when people use it to build or extend.

Other big mixed-use projects going ahead include several in the city as well as 3 Oceans at Scarborough and Belmont Park’s high-density community, which will be built in stages.

“Few things have a greater economic impact than the building of new homes en masse.”

MBA’s housing director Jason Robertson and construction director Kim Richardson agree, adding that builders are suffering because population growth hasn’t yet taken hold and boosted demand, banks have grown wary about lending money and West Australians are nervous about buying a new home or investment property after years of income worries.

They say the building industry will remain tough for some time.

The State Government’s most recent Construction Industry Snapshot for WA shows residential completed construction was down 2.7 per cent in value from the previous quarter, while non-residential was down a much larger 20.1 per cent. Home building approvals had also slumped.

Mr Richardson says the $4 billion allocated in the Budget for Metronet and major road projects will bring limited benefits.

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Mr Robertson says residential builders can look forward to recovery in 2020.

A recent study of 30 major cities worldwide forecast Perth would be the fastest growing for the next three decades, which means a lot of new homes.

Until the benefits of the rising WA economy start to flow down to builders, their message to potential clients is the best deals are available now - before the predicted population growth, stronger employment statistics and increasing momentum in the mining and resources sector push prices up.

“Now is a fantastic time to build in Western Australia with build prices amongst the cheapest they have been in the past decade and interest rates at record lows,” Mr Robertson said.

“There will be some pain yet and times are still tough but builders with good business models and solid reputations will continue to offer great deals for homebuyers here and now, and into the future.”

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REPORTS: BRANCHES

Better times ahead for the Mid-West Tourism and mining are giving hope for economic improvement in the MidWest region.

Master Builders and REIWA held their second Economic Prospects Forum in Geraldton in July, looking at promising local strategies and projects.

Master Builders Director Mr McLean said the regional economy had been struggling for two years but there were positive signs ahead.

“The Mid-West Development Commission’s Chairman Todd West highlighted a range of tourism-related initiatives such as a Kalbarri Skywalk, Abrolhos Islands tours and Murchison geo-tourism which will help to drive visitors from around the world to this huge region,” he said.

“The other encouraging economic indicator is the growth in magnetite and iron ore mining exploration that is happening in the region, which is always an early sign that other investment prospects are about to improve.

Forum panellists: Mid-West Development Commission Chairman Todd West, RSM Director of Business Advisory in Geraldton Trevor Lake, REIWA Advocacy and Policy Manager Sadie Davidson and Bankwest Chief Economist Alan Langford

“These diverse initiatives will ultimately enhance the building industry, real estate market and local businesses.

“With dwelling approvals and established property sales well below 10-year averages in the region, some builders are now focusing on renovations of established homes to retain employment for their staff and sub-contractors.”

Regional Manager Paul Kerr said he was keen to see the Mid-West get its fair share of state funding to boost local infrastructure and capitalise on growth opportunities.

Great Southern About 50 members came to the Great Southern AGM in June, where Housing Director Jason Robertson gave an update on the latest news in the industry.

Alphazeta senior fire and building services engineer Kelly Brown also spoke to members, highlighting issues with building in bushfire-prone areas. The enjoyable evening included a three-course dinner, drinks and, of course, the chance to socialise.

Kalgoorlie-Esperance At the AGM in Kalgoorlie recently, Brett Partington from Esperance was re-elected chairman of the branch. Housing council chairman Jack Pleiter and Executive Director Michael McLean attended the meeting, which was held on the weekend of the region’s annual Building Excellence Awards.

If you employ workers in the construction industry you may be required by law to register in the Construction Industry Long Service Leave Scheme.

Find out by visiting www.myleave.wa.gov.au or by calling 08 9476 5400.

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MASTER BUILDER SPRING 2018

The glamorous table setting for the steampunk themed Master Builders-Bankwest Excellence in Construction Awards.

EXCELLENCE IN CONSTRUCTION AWARDS

Best of past, present and future come together at construction awards A steampunk theme brought a mix of old and new to the Master Builders-Bankwest Excellence in Construction Awards in July.

In literature, steampunk links technology of the nineteenth century steam-powered era with science fiction. In design, historic elements combine with high tech.

At the awards in the Perth Convention and Exhibition Centre, images of steam drifting across antique interconnected cogs illustrated the concept on vast modern screens.

Entertainment included steampunk stilt walkers, local band Switch and a stomping, high-powered act by The Dance Collective. Later in the evening, Guinness World Record holder and star illusionist Cosentino reinvented the traditional magic show to create a performance which was fresh and funky.

Executive Director Michael McLean matched the theme with a speech which showed how we carry our past with us into the present and use it to improve our WWW.MBAWA.COM

future. He spoke of Robert Law, Master Builders’ first president in 1898, musing on what he would think of the association today and the advice he might offer to guide it forward.

Even comedian-MC Peter Rowsthorn got his biggest laugh with a nostalgic remark about dodgy teenage habits.

A popular addition this year was the Protech Gold Bar, with a new Mercedes X class ute on display by Master Builders’ vehicle partner Automotive Holdings Group.

A record number of more than 750 guests celebrated the excellent quality and workmanship of 105 entries (also a record), with projects collectively worth more than $2.3 billion. It will be a challenge to improve on the success of the event next year.

Entries open in January.

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EXCELLENCE IN CONSTRUCTION AWARDS

MC Peter Rowsthorn got into the night’s steampunk spirit.

Multiplex boss Chris Palandri addresses the awards audience following the announcement of Optus Stadium as the Bankwest Best Project for 2018.

The DENMAC team took to the stage on winning Subcontractor of the Year.

Illusionist Cosentino was part of the night’s outstanding entertainment.

The Dance Collective in full flight.

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MASTER BUILDER SPRING 2018

EXCELLENCE IN CONSTRUCTION AWARDS

Optus Stadium was the big prize winner on the night and Multiplex’s tenth win in the 29-year history of the Excellence in Construction Awards.

Main winners Multiplex led the award winners by earning the Bankwest Best Project Award for the already much-loved Optus Stadium.

The 60,000-seat stadium and surrounding park at Burswood was applauded by judges as a worldclass venue.

Awards judge Rod Mollett called the stadium “an outstanding, indeed iconic, example of such multiuse arenas” which would allow Perth to attract major sporting and cultural events for many years.

Multiplex has now won the award 10 times in the 29-year history of the event. The company also won awards for Construction on a Challenging Site, Best Government Building Over $100 million and Best Public Use Building Over $100 million for the stadium as well as a gong for the fitout of the Telethon Kids Institute.

Regional projects were well represented in the best project category this year, including Perkins Builders for the Bannister Downs Dairy in Boorara Brook and Doric Contractors for the Red Earth Arts Precinct in Karratha.

The Subcontractor of the Year Award was won by DENMAC, which did the cladding, including roofing and curtain wall for the Bannister Downs dairy.

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DENMAC won Subcontractor of the Year Award for the cladding, including roofing and curtain wall for the Bannister Downs dairy.

Judge Kevin Sale said the project showed the highest standard of workmanship on a complex job where individually shaped aluminium panels were laser cut, anodized and transported from the eastern states, then fitted to the curved framework.

Karratha’s Red Earth Arts Precinct won Best Regional Project. The $48.5 million development consists of a 450-seat performing arts centre with an outdoor event space, library, roof top terrace and cinema. The façade

creates an impression of natural rock formations of the region.

Judge Charlie Baggetta described the centre as “a striking project, well designed, well constructed and a display of excellence in workmanship.”

Winners are now considered for the Master Builders National Housing and Construction Awards in Adelaide in November.

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EXCELLENCE IN CONSTRUCTION AWARDS

Awards

honours list

Best Refurbishment or Renovation

Best Health Care Building

UNDER $1.5 MILLION

$5 - $10 MILLION

Cassari Group Brine House Extension

$1.5 - $5 MILLION

ZD Constructions St Maria Goretti’s Catholic School Stage 13

2018 BANKWEST BEST PROJECT

$5 - $10 MILLION

Multiplex Optus Stadium and Stadium Park

DMG Construction Pty Ltd Tradewinds Hotel Refurbishment

SUBCONTRACTOR OF THE YEAR AWARD

$10 - $20 MILLION

DENMAC Bannister Downs Dairy Creamery

Swan Group WA Curtin Connect

BEST REGIONAL PROJECT

$50 - $100 MILLION

Doric Contractors Pty Ltd Red Earth Arts Precinct

Built Intercontinental Hotel

BEST CIVIL ENGINEERING WORKS OVER $100 MILLION

Best Building Fitout

Laing O’Rourke Perth Stadium Station (Building and Civil Works)

PETER HUNT MEMORIAL ARCHITECTS AWARD Site Architecture Studio

JIM SAUNDERS MEMORIAL JUDGES’ INNOVATION AWARD Probuild Constructions (Aust) Pty Ltd Tribe Hotel

PROJECT MANAGER OF THE YEAR

$1.5 - $5 MILLION

SHAPE Australia Pty Ltd TPG + Placematch

$5 - $10 MILLION

ADCO Constructions Pty Ltd Western Australia Police

$20 - $50 MILLION

SHAPE Australia Pty Ltd Westpac Perth

Richard Bell Perkins Builders Bannister Downs Dairy

$50 - $100 MILLION

SITE MANAGER OF THE YEAR

Best Multi-Unit Development

Steve Smith ZD Constructions St Maria Goretti’s Catholic School Stage 13

EXCELLENCE IN WORKPLACE HEALTH & SAFETY ADCO Constructions Pty Ltd Regis Hollywood Aged Care Redevelopment

CONSTRUCTION ON A CHALLENGING SITE Multiplex Optus Stadium and Stadium Park

EXCELLENCE IN CONCRETE CONSTRUCTION

Multiplex Telethon Kids Institute

$10 - $20 MILLION M/Construction M/24 by Match

$20 - $50 MILLION Built Latitude at Leighton

$50-$100 MILLION

Probuild Constructions (Aust) Pty Ltd Stirling Cross Apartments

BADGE Sir Charles Gairdner Hospital Short Stay Unit and Intraoperative Magnetic Resonance Service Upgrade

Best Retail Building $1.5 - $5 MILLION Utopia Industries Market Grounds

$10 - $20 MILLION PACT Construction The Camfield

$20 - $50 MILLION

BGC Construction Pty Ltd Butler Shopping Centre WW

$50 - $100 MILLION

Doric Contractors Pty Ltd Marketlane Subi

Best Industrial Building $1.5 - $5 MILLION

McCorkell Constructions (WA) Pty Ltd Sunscape Factory Development

$5 - $10 MILLION

PS Structures Pty Ltd Pluslife - Perth Bone and Tissue Bank Inc

$10 - $20 MILLION

Broad Construction Pty Ltd ASC Submarine Facility Upgrade

$20 - $50 MILLION

Perkins Builders Bannister Downs Dairy

Best Historic Restoration or Renovation UNDER $1.5 MILLION

Colgan Industries Pty Ltd Martin Kelly Centre

$1.5 - $5 MILLION

McCorkell Constructions (WA) Pty Ltd Fremantle Town Hall

PACT Construction Song School

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MASTER BUILDER SPRING 2018

EXCELLENCE IN CONSTRUCTION AWARDS

Best Education Building

Best Public Use Building

Best Aged Care Building

UNDER $1.5 MILLION

$1.5 - $5 MILLION

$10 - $20 MILLION

$1.5 - $5 MILLION

$5 - $10 MILLION

$20 - $50 MILLION

$5 - $10 MILLION

$10 - $20 MILLION PACT Construction The Camfield

Subcontractor of the Year Awards

$10 - $20 MILLION

$20 - $50MILLION

SERVICES - HYDRAULIC & PLUMBING

$20 - $50 MILLION

OVER $100 MILLION

SERVICES - MECHANICAL & ELECTRICAL

$50 - $100 MILLION

Best Seniors/Aged Persons Multi-Unit Development

CLADDING - ROOFING & CURTAIN WALL

Best Office Building

$5 - $10 MILLION

FINISHES – TILING

$10 - $20 MILLION

FINISHES - CABINET/JOINERY/CARPENTRY

Cassari Group Brine House Extension

ZD Constructions St Maria Goretti’s Catholic School Stage 13

Focus Building Company Pty Ltd Our Lady of Grace School

Focus Building Company Pty Ltd Mother Teresa Catholic College Stage 3

EMCO Building Challenger Institute of Technology, Murdoch

Badge Perkins Joint Venture WA Schools, Aveley Secondary College Stage 1

$10 - $20 MILLION

Pindan Constructions Pty Ltd Wanneroo Civic Centre

$20 - $50 MILLION

Perkins Builders Summit Headquarters

$50 - $100 MILLION

PACT Construction Song School

Alita Constructions Rossiter Pavilion and Playing Field

Perkins Builders Qantas T3 Regional Hub

Multiplex Optus Stadium and Stadium Park

McCorkell Constructions (WA) Pty Ltd Ocean Gardens Palm Court Apartments

PS Structures Pty Ltd Bethanie on the Park

PACT Construction McNabb Loop Aged Care Facility

BADGE Regis Aged Care Woodlands

Johnson + Co Plumbing Services Intercontinental Hotel

Everett Smith & Co Pty Ltd Perth Stadium Station

DENMAC Bannister Downs Dairy Creamery

Vercon Optus Stadium

Ferguson Corporation Pty Ltd Springs Aloft Hotel

$20 - $50 MILLION

BGC Construction Pty Ltd St Ives Carine

Doric Contractors Pty Ltd Marketlane Subi

Best Government Building $1.5 - $5 MILLION

Bistel Construction Pty Ltd Yanchep Open Space Sports Amenities Building

$20 - $50 MILLION

Georgiou Group Aubin Grove Train Station

OVER $100 MILLION

Multiplex Optus Stadium and Stadium Park

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23

KIMBERLEY PILBARA AWARDS

The royal court gathers at zand

ers

Majestic night for Kimberley Pilbara awards Magnificent building projects in the north of our State were celebrated at the Master Builders/Bankwest Kimberley Pilbara Building Excellence Awards in June.

The regal-themed event was held at Zanders on beautiful Cable Beach in Broome, where MC George Manning extended a royal welcome to guests. Special honour was granted to Bankwest, our principal partner for 12 years, and Rob Menzies from Roebuck Estate Developments, our major regional sponsor for 15 years.

A prize fit for a queen was presented by Renae Miller of Cygnet Bay Pearls. The pearls, part of the Tides Collection designed to show the power of Broome’s ocean currents, were won by Lisa and Bob Sweet of Broome Builders. They generously passed on the stunning prize to newly married Bianca Butera, whose wedding to Victor was just five weeks earlier.

Broome Builders received many accolades during the night, including wins in contract home categories and trade awards. It was great to see former Apprentice of the Year Rhys Egan fulfilling his early potential by winning the Excellence in Carpentry gong.

Broome Builders’ carpentry apprentice Seth Lovell earned the 2018 Apprentice Encouragement Award and the company also won the Roebuck Estate Best Country Home 2018 for their project at 50 Sands Street, Cable Beach.

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An Empress–ive evening

Connolly Homes also did well on the night, picking up three awards in contract home categories.

H & M Tracey Construction carried off a prize for St Mary’s Kindergarten in Cable Beach and Ri-Con Contractors for their Broome Aboriginal Short Stay project in Broome.

Best Country Ho me winner Bob Sweet of Broom Rob Menzies (lef e builders with t) and Rob Spad accini (right)

The prestigious Bankwest Best Regional project was won for the second year by Doric Contractors Pty Ltd, for their amazing Red Earth Arts Precinct in Karratha.

This stunning project also earned awards for innovative cladding, excellence in ceilings, clever use of building materials, top notch energy efficiency and the Landcorp Judges’ Innovation Award.

The imperial proclamations continued with MBA Director Michael McLean granting Rob Menzies honorary membership for his long-term commitment to the regional branch.

Richard Bator, Chris De Costa, Lance Van Drunick and Rob Spadaccini (Bankwest Best Regional Project winners Doric Contractors)

Rob’s dedication and hard work with the annual building awards and other events were worthy of high recognition.

Finally, Di Gilleland announced her retirement after a reign of almost 16 years as regional manager. In her abdication, Di thanked her loyal subjects, wished them well and waved farewell.

Rob Spadaccini, Rob Menzies,

Di Gilleland, Michael McLean

MASTER BUILDER WWW.MBAWA.COM SPRING 2018

KIMBERLEY PILBARA AWARDS OVER $15 MILLION Doric Contractors Pty Ltd, Red Earth Arts Precinct, Karratha

Kimberley Pilbara Awards 2018

BEST CIVIL ENGINEERING PROJECT OVER $6.5 MILLION

$300,000 - $350,000 Connolly Homes, Sariago Crescent, Bilingurr $350,000 - $400,000 Connolly Homes, Ibasco Crescent, Bilingurr $450,000 - $500,000 Connolly Homes, Bargas Link Crescent, Bilingurr $500,000 - $650,000 Broome Builders, Herbert Street, Broome $650,000- $850,000 Buildmore Constructions, De Pledge Way, Broome OVER $1 MILLION Broome Builders, Sands Street, Broome

BEST RESIDENTIAL ALTERATION

BEST COUNTRY HOME

BEST APPOINTED KITCHEN

BANKWEST BEST REGIONAL PROJECT AWARD

EXCELLENCE IN CEILINGS

BANKWEST BEST CUSTOMER SERVICE AWARD

EXCELLENCE IN GLAZING

BANKWEST PROJECT BUILDER OF THE YEAR AWARD

BEST APPOINTED BATHROOM

APPRENTICE ENCOURAGEMENT AWARD

INNOVATIVE USE OF BUILDING MATERIALS

Broome Builders, Broome

Broome Builders

Broome Builders

Carpenter: Seth Lovell Employer: Broome Builders

JUDGES INNOVATION AWARD

Doric Contractors Pty Ltd, Red Earth Arts Precinct, Karratha

BEST STEEL BUILDING

Pindan Contracting - 8 Bed Renal Hostel, Kununurra

MOST LIVEABLE HOME Connolly Homes, Bilingurr

$1- $2 MILLION Broome Builders, Millington Road, Cable Beach

Subcontractor: Brock Solid Cabinets Builder: Broome Builders, Sands Street, Broome

UNDER $1 MILLION MGC Building & Maintenance, Carbeen Street, Kununurra

$1- $2.5 MILLION Pindan Contracting, Boomerang Close, Learmonth

EXCELLENCE IN INNOVATIVE CLADDING

FIRM Construction, Ningaloo Centre, Exmouth

UNDER $1 MILLION Broome Builders, Winckel Court, Cable Beach

BEST MULTI RESIDENTIAL DEVELOPMENT

Geraldton Building Services & Cabinets, Karratha Subcontractor: Denmac Industries Builder: Doric Contractors Pty Ltd, Red Earth Arts Precinct, Karratha

Doric Contractors Pty Ltd, Red Earth Arts Precinct, Karratha

BEST CONTRACT HOME

EXCELLENCE IN ROOFING

EXCELLENCE IN CABINET MAKING

EXCELLENCE IN CONCRETING

Subcontractor: Drilline Civil & Haulage Builder: Pindan Contracting Pty Ltd, Onslow Aquatic Centre, Onslow

Broome Builders, 50 Sands Street, Broome Subcontractor: Ceiling & Wall Contractors Builder: Doric Contractors Pty Ltd, Red Earth Arts Precinct, Karratha Subcontractor: Aluminium Products Builder: Firm Construction, Ningaloo Centre, Exmouth Builder: Connolly Homes, Bargas Link Crescent, Bilingurr

Builder: Doric Contractors Pty Ltd, Red Earth Arts Precinct, Karratha

EXCELLENCE IN WALL & FLOOR TILING Subcontractor: Broome Tiling Services Builder: Connolly Homes, Bilingurr

EXCELLENCE IN ENERGY EFFICIENCY

Builder: Doric Contractors Pty Ltd, Red Earth Arts Precinct, Karratha

EXCELLENCE IN CARPENTRY

Subcontractor: Rhys Egan – Broome Builders Builder: Broome Builders, Sands Street, Cable Beach

EXCELLENCE IN PAINTING

Subcontractor: Dan’s Quality Painting & Decorating Builder: Broome Builders, Sands Street, Cable Beach

EXCELLENCE IN STRUCTURAL STEEL

Subcontractor: Tahli Engineering, Builder: Firm Construction, Ningaloo Centre, Exmouth

BEST COMMERCIAL ALTERATION OVER $6.5 MILLION

Ri-Con Contractors Pty Ltd, Emma Gorge Resort, Gibb River Road

BEST COMMERCIAL OR INDUSTRIAL BUILDING $1–$2.5 MILLION Pindan Contracting, Kununurra

$2.5 - $6.5 MILLION H & M Tracey Construction Pty Ltd, St Mary’s Kindergarten, Cable Beach $6.5 - $15 MILLION Ri-Con Contractors Pty Ltd, Broome Aboriginal Short Stay, Broome

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ROBERT LAW AWARD

How Ric’s bricks shaped a state The suburbs of Perth and towns of WA would look very different without Midland Brick founder Ric New. Mr New, who was born in Perth in 1914 and left school to join the building industry at 14, responded to a severe shortage of construction materials after World War II by manufacturing his own.

With his brother Gerry, a £200 loan from his mother and homemade machinery put together from war surplus parts, Mr New established Midland Brick in 1946.

By 1989, the year he died, his company was supplying about 80 per cent of the bricks for the WA market, which means many of the homes in traditional suburbs owe their existence to the double-brick champion.

Rick New’s daughter Marylyn talks about her innovative and entrepreneurial father at the CEO Lunch

Brick-making phenomenon Ric New

Midland Brick general manager Greg Smith said the company began with one kiln built by the New brothers from second-hand bricks. The gearbox of a Sherman tank was modified to become the brickworks’ first auger and three Bren Gun carriers were converted into the state’s first commercial forklifts, which tore around the works at an alarming 65km/h.

The company has grown to be one of the world’s biggest brick-making plants and has produced more than 10 billion bricks - enough to reach the moon and back three times.

Last month, Mr Smith and Mr New’s daughter Marylyn New accepted the Robert Law Award on his behalf at the Master Builders-Bankwest CEO lunch, honouring his influence on the State’s building industry.

Governor Kim Beazley joins Michael McLean for a question and answer session.

Keynote speaker at the event, held at The Westin Perth, was the Governor Kim Beazley who talked about the state of the economy and his plans for his new role before answering questions from some of the 200 Master Builders members in the audience.

Also during the lunch, Master Builders Board member Robert Shaw presented a $15,600 donation to MATES in Construction WA. The money was raised during the Ride Against Suicide earlier this year.

Thank you to our sponsors: Bankwest, Alinta Energy, Braven Group Services, Commercial Aquatics, Cbus Super, Protech and West Australian Mechanical Service.

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The gathering at Westin Perth.

MASTER BUILDER SPRING 2018

LEGAL

Isla McRobbie

Jeff Bryant

Jackson McDonald previously published an article outlining how ipso facto reforms will affect commercial contracts entered into after 30 June.

Since then, the Corporations (Stay on Enforcing Certain Rights) Declaration 2018 and Corporations Amendment (Stay on Enforcing Certain Rights) Regulations 2018 have been enacted and form a critical part of the overall ipso facto reform package.

This reform package will affect the exercise of contractual rights under contracts within the construction industry.

Many contracts contain clauses that allow a party to do something or act in a particular way merely by reason of a particular circumstance arising (referred to as ipso facto clauses – ipso facto meaning by the very fact or act). In the construction context, the ipso facto clauses often involve insolvency. For example, a clause may give a counterparty an immediate right to terminate if an administrator is appointed to the other party – regardless of whether that party is otherwise in breach of the contract. In that example, it is the mere fact of the appointment of the administrator that gives rise to the right to terminate. There are other rights that you might find in construction contracts that fall into this ipso facto category, for example, a clause which gives a party an immediate right to call on security if an administrator is appointed.

The ipso facto reform package has arisen from criticism as to the limited ability to successfully turn around a financially distressed company under administration. If an administrator is appointed to a party, and a contract has a provision allowing the counterparty to terminate on the appointment of an administrator (for example), then historically those counterparties have ‘fled for the hills’ and exercised the right to terminate. In doing so, the potential financial distress that a party may be under is exacerbated by the loss of the contract (which may, assuming it has been well priced, have value to the party). Where this occurs, the ability of the administrator to hand back a company to the directors having “traded out” of any financial issues, becomes limited.

Recent changes to the Corporations Act 2001(Cth) impose a stay on the ability to enforce ipso facto WWW.MBAWA.COM

Ipso facto law reform – what does it mean for the construction industry? clauses against a party that becomes subject to certain prescribed insolvency events.

From 1 July, a party will not be able to enforce a contractual right (against another party) merely because: • The party is in administration, receivership or involved in a scheme of arrangement.

• Of the party’s financial position, while it is in administration, receivership or involved in a scheme of arrangement.

• Of any reason prescribed by the Regulations; or • Of any reason that is in substance contrary to the above. This final limb is referred to as an “antiavoidance” measure designed to make sure the new law captures contracts that are drafted to circumvent the new ipso facto laws.

Using the example above, if the contract includes a clause allowing a party to terminate in circumstances where an administrator is appointed to the other party, then the effect of the stay imposed under the new laws means that clause is not enforceable, and the counterparty could not terminate solely by reason of the appointment of the administrator. However, if the party is otherwise in breach of its contractual obligations, and that breach gives rise to a right to terminate, then that right still can be exercised regardless of whether an administrator has been appointed.

Contracts and rights not covered by the ipso facto laws The ipso facto restrictions do not impact on statutory rights – only contractual rights. Further, subject to the courts’ ability to intervene, there are particular categories of contracts and contractual rights that are excluded from the stay prescribed under the new reform package.

Relevantly to the construction industry, among other circumstances, the ipso facto law reforms do not apply to contracts: • Entered into before 1 July that are novated, renewed or varied before 1 July 2023.

• Involving ‘special purpose vehicles’ that provide for a public-private partnership or project finance.

• For the provision of certain project works or goods or services in the construction industry, where the total payment for these works or services is $1 billion or more (where such contract is entered into before 1 July 2023).

• Involving Australia’s national security, border protection or defence capability (which may include contracts for construction, engineering and associated goods and services).

• For the supply of essential or critical goods or services, or for the carrying out of essential or critical works, to or for government or to or for the public on behalf of the government.

• For the supply of goods or services to, or on behalf of, a public hospital or public health service.

• Relating to government licenses, permits or approvals.

Nor do the reforms apply to contractual rights: • Where the liquidator, administrator or person appointed to administer a scheme of arrangement consents in writing to the enforcement of the right.

• Made in agreements after the commencement of formal restructure.

• Of set-off, whether or not an amount is due for payment, will or may become due for payment or is unpaid.

• To assign, novate or otherwise transfer rights or obligations.

• To step-in.

Some things to consider when entering into contracts The above examples of contracts and contractual rights excluded from the new ipso facto laws are not exhaustive.

In light of the new law, businesses will need to consider their contract provisions (for new contracts) and consider their procurement practices and due diligence practices. Businesses also will need to be mindful of the rights that might be stayed by reason of the appointment of an administrator to a party and ensure that rights are exercised validly.

Remember that other contractual rights are not impacted by the new law and still can be enforced.

For example, a party can terminate or exercise a contractual right if the other party has not performed an obligation (subject to following the contractual regime for such termination). While not expressly identified in the ipso facto regime, we suggest that you carefully consider options and take advice before exercising a right to terminate for convenience in circumstances where the other party is under administration, receivership or involved in a scheme of arrangement.

For help reviewing or revising contracts or practices in light of these changes, contact Jackson McDonald partner Isla McRobbie or special counsel Jeff Bryant on 9426 6600.

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TRAINING

Free career, training and employment services at TAFE West Australians have access to a new service offering help with apprenticeships, training courses, job searches and career choices.

Five metropolitan Jobs and Skills Centres opened in April to better link the training sector with industry. They are located at the Joondalup, Balga and Northbridge campuses of North Metropolitan TAFE and Thornlie and Rockingham campuses of South Metropolitan TAFE. A further eight centres will be set up in regional areas from Broome in the north to Albany in the south and east to Kalgoorlie.

The centres are expected to engage with local industries to promote local solutions for local needs. They will offer businesses free help to develop the skills of their workforce and recruit new workers, apprentices and trainees.

The aim is to ensure programs meet business needs and give people access to training that maximises employment opportunities and career development.

Master Builders members are encouraged to contact their local centre for support to improve their workforce.

The centres are complemented by the Jobs and Skills WA website, which brings together information and resources on vocational education and training (VET), careers and jobs for the first time.

WA brickie wins gold medal at WorldSkills Australia competition

The website, which also launched in April and already has more than 500 visitors daily, includes a course search with details of all publicly funded VET courses and qualifications available through TAFE colleges and private training providers.

There is also has a section on apprenticeships and traineeships with clear, integrated information developed in consultation with the Australian Apprenticeship Support Network (AASN) and the Australian Government Department of Education and Training.

For employers, the Jobs and Skills WA website has resources to support workforce planning which includes a step-by-step process to plan, attract, develop and retain a skilled workforce. Information on financial grants and other training options for industry is also provided.

The resources, templates and guides were designed to support small to medium sized businesses.

A free online jobs board on the Jobs and Skills WA website features local opportunities from employers via the Jobs and Skills Centres. More than 1000 vacancies have been posted since the service was launched and employers can advertise jobs by contacting their nearest centre.

The website jobsandskills.wa.gov.au is managed and maintained by the Department of Training and Workforce Development. Call 13 64 64 to contact your nearest centre.

A West Australian bricklayer has won the national WorldSkills championships for the first time.

Nik Foster, who trained at South Regional TAFE in Bunbury, was awarded the gold medal for bricklaying at the youth trade competition in Sydney, held in June.

Australian Brick and Blocklaying Training Foundation manager Dean Pearson congratulated Mr Foster, his employer ABN Training and trainers Mark Baker and Eddie Campbell.

“We are all immensely proud of Nik, he is a quiet lad with a very special talent and a very bright future. We salute his achievement and praise his overall dedication to his brick and blocklaying apprenticeship,” Mr Pearson said.

“This is also a brilliant outcome for a leading builder that supports apprenticeship training and keeps producing some of the best trades in the state.”

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MASTER BUILDER SPRING 2018

HEALTH

Asbestos curse continues as tradies struggle to identify it

Barry Knowles had no idea he was handling a lifethreatening carcinogenic almost daily throughout the 1950s and 60s.

Mr Knowles, a Perth-based builder for more than 50 years, was like many of his generation in being unaware of the dangers of asbestos.

He died of mesothelioma in 2016, among the second wave of sufferers affected by asbestos.

Although the dangers are now well known and asbestos was banned in Australia in 2003, the deaths continue.

We are experiencing a third wave of sufferers, many of them tradies and DIYers. A survey has found three quarters of tradies have trouble identifying asbestos.

More than 700 Australians die from mesothelioma each year and more than five times that number from asbestos-related causes. This is more than breast cancer, prostate cancer or the national road toll.

The number of new cases diagnosed each year is still increasing, despite earlier predictions that numbers would peak by 2015.

Jo Morris, operations officer of Reflections, a charity promoting medical research and providing support for sufferers of asbestos-related diseases, says younger generations need to be aware of asbestos risks in the built environment.

“With the average age of exposure for recorded mesothelioma sufferers being 23, I believe we have a responsibility to ensure those entering the construction industry are informed and empowered to make potentially lifesaving decisions,” she told an industry workshop last year.

At the Construction Training Fund workshop, it was highlighted that three in four tradies surveyed found it difficult to identify asbestos and new apprentices were not receiving a consistent, relevant education about the risks of asbestos in the work place.

National asbestos awareness week, starting 26 November, is a reminder that the Australia-wide ban did not end the need to be asbestos aware in the building industry.

Don’t sand it, drill it, or even touch it. If you are unsure, call in a licensed hygienist or asbestos removalist. There is no safe level of asbestos exposure.

If asbestos is disturbed, thousands of tiny fibres are released, becoming airborne. Inhalation is the most common and most dangerous route of exposure, with fibres becoming embedded in the lungs. This can cause scarring of the lung tissue, leading to asbestosis, lung cancer and mesothelioma – a terminal cancer. The health effects can take 15 to 40 years to appear.

FURTHER INFORMATION: visit Reflections at reflections.org.au

HEALTH

Saving our skin

Australia has some of the highest rates of skin cancer in the world and the cost is felt across our entire community.

Take a moment to think what could happen if you were diagnosed with skin cancer. Some cases may be relatively simple to treat but malignant melanoma treatment may include surgery, radiation and chemotherapy. Think about how this would affect you and your family. You may not be able to work, leading to financial stress. Then add the cost of medical treatment, which may be substantial.

Think also about the impact on those around you – your family and friends. The uncertainty of not knowing the outcome can be incredibly difficult and can cause a huge emotional strain on you and your family.

In some cases, skin cancer may even cost your life.

diagnosis. Secondly, NMSC is by far the most common cancer in Australia. To give a sense of scale, there were more than 750,000 Medicare claims for skin cancer treatment in Australia in 2015.

Then there is the value of lost output, lost production, absenteeism and increased insurance premiums to consider.

Yet what’s the cost of protecting your skin from excessive UV radiation? Buying a proper hat and remembering to pack the sunscreen are minor inconveniences compared to the risk and cost of skin cancer.

We know too much UV radiation is the main cause of skin cancer. This presents us with the opportunity to reduce our risk, which not only avoids the personal costs but fewer skin cancers overall will reduce pressure on our health system.

Now, let’s take a wider view.

From a fiscal perspective, it is estimated that skin cancer (melanoma and non-melanoma skin cancer, or NMSC) costs Australia around $1 billion dollars a year in diagnosis and treatment. There are two main reasons why this figure is alarmingly high. Firstly, melanoma, the most dangerous type of skin cancer, can be very expensive to treat depending on how advanced it is at

The way forward is clear. Regardless of skin type, we should use sun protection when UV levels reach three and above. If you work outdoors, you accumulate a high amount of sun exposure over time and should be covering up whenever you are outdoors.

So next time you head out in the sun unprotected, think about the costs – and what you could ultimately save.

INSURANCE

Professional indemnity insurance services when they direct clients to a designer or enter into design and construct contracts.

PI insurance is designed for professionals who provide advice or services to their customers. It protects against legal costs and claims for damages which may arise out of an act, error, omission or breach of professional duty.

MBA Insurance Services WA state manager Jeff Concanen.

Many residential builders are now involved in sourcing designs so it’s important to understand how this can expose a business to problems without the right insurance cover.

In the past, professional indemnity, or PI, insurance has been used by experts such as engineers, architects and designers. Now builders are likely to be legally responsible for injury or loss due to professional 30

Key exposures are design failure, inadequate or incorrect advice, design or product specification, inappropriate or incorrect certification and poor work documentation.

PI claims can be made by any third party including clients, regulatory authorities, professional associations, future property owners and body corporations.

Claims could be made in cases such as a balcony which collapses due to faulty design, the installation of tiles in a wet area that are not slip-rated to the correct level requiring removal and replacement to the correct specification or a negligently designed slab which cracks and needs to be repaired.

Builders are typically the first port of call for design or product specification losses and it costs time and money to defend against PI claims. Even if a builder is only found to be 10 per cent responsible for the loss, the legal defense costs and proportionate liability judgement can result in $100k+ losses.

Contractors and builders who provide design, product specification or other professional services take on the additional responsibilities and liabilities of a design professional.

Design and construct PI policies are the solution because they encompass a broad definition of the various professional services involved in designing and building. A non-D&C PI policy requires a specific list of all professional services to be covered and anything not on the list is not insured.

It doesn’t matter whether these professional services are provided in house or an external consultant is engaged, the liability remains for claims arising out of injury or loss incurred due to a breach of professional duty in the provision of professional services.

MBA Insurance Services has collaborated with specialist underwriters to offer MBA members an exclusive D&C PI insurance policy. Call 08 9476 9898.

MASTER BUILDER SPRING 2018

INDUSTRIAL RELATIONS

Federal Court shows sense on union right of entry In early July, the Full Court of the Federal Court unanimously threw out an appeal by the CFMMEU(WA) on union right of entry.

This claim goes back a couple of years when the union tried unsuccessfully to get on a refinery site Master Builders construction director Kim Richardson. south of Perth before the start of a morning shift to talk to workers. The refinery operator refused, maintaining the FWAct allowed entry during work breaks but time before work started was not a break.

The union took the issue to the Fair Work Commission, who confirmed the refinery’s interpretation. After losing that round, the CFMMEU appealed to a Federal Court single judge, who also confirmed the FWC decision.

Still not satisfied with the outcome, the union appealed to the Full Court of the Federal Court and got, in plain terms, roasted.

The Full Court rejected the union claim on all counts, finding its contentions “absurd”. It’s unusual for judges to use blunt language but they did in this case. The Court found the union’s argument meant the union had right of entry to hold discussions with employees at a worksite whenever the employees took a break from work, even a toilet break. Such an outcome went much wider than when an employee took a meal break, as set out under the FWAct right of entry, and on a plain reading of the FWAct the union’s interpretation was baseless.

This decision is not just common sense but reaffirms the interpretation of the FWAct on this point since it was introduced in 2009 so it is not new or novel. Hopefully, the CFMMEU will learn from this decision rather than ignore it.

Modernising WA safety laws The biggest change to West Australian safety laws in decades has been heralded by Minister for Commerce and Industrial Relations Bill Johnston in a discussion paper with 44 recommendations for modernisation and consolidation.

It’s the largest overhaul since the introduction of the Occupational Safety and Health Act 1984.

Submissions were due at the end of August, with Master Builders offering views on the proposed changes and their impact on the building and construction industry.

The central point is the altered safety laws are aimed at large employers but catch all the smaller ones in the same net, at a heavy cost.

Premier Mark McGowan says consistently and correctly in his media releases that 97 per cent of all WA employers are small and medium size employers (SMEs), who are the drivers of employment in the local economy. However, the proposed the safety laws focus on large corporations, which comprise just three per cent, ignoring the SMEs who are already struggling with the daily impact of government red tape.

WWW.MBAWA.COM

These SMEs do not have the same in-house expertise or capacity to employ safety specialists as large corporations do. That is why Master Builders is pressing the State Government in its submission to adopt a pragmatic approach on how the new safety laws apply to a broad cross section of employers from the large multi-national model to the small employer with only one or two employees.

SMEs make up at least 90 per cent of the local building and construction industry. Excessive safety rules and procedures will not help these businesses thrive, especially in a very tight building sector where work levels are down sharply from three years ago.

Master Builders has committed significant resources in recent years to assisting contractors improve safety standards in the building and construction sector.

Industry data shows major strides are being made in improving safety but much more needs to be done, which all in the industry recognise and accept.

Master Builder does not argue safety standards should be diluted for small employers. Instead the safety laws should be founded on a balance of what is reasonably practicable considering the capacity of the employer and capacity to apply those laws.

Gossip Column Take the money!

The FWC recently dismissed an extraordinary dispute involving a former union leader who claimed he had been fired because he was mistakenly overpaid by the union (his employer) and wanted to pay the money back. However, his employer refused to accept, claiming there was no back payment. And these people want to represent workers?

Lawyer gets redundancy rules wrong A well credentialled law firm on the Australian east coast was found by the courts to have failed in meeting the basic obligations of making an employee redundant by not consulting with them about a major change in their employment status. If the lawyers can get it wrong, what chance is there for employers who have little understanding of the legal niceties of the complex Fair Work Act and complex federal modern awards?

ABCC to pursue personal fines The Australian Building Construction Commission (ABCC) will pursue construction union officials to personally pay fines, if imposed by the courts, for unlawful conduct where those union officials have a conviction record of such conduct. This follows the High Court of Australia earlier this year approving this approach to try and improve the sorry track record of CFMMEU officials repeatedly thumbing their nose at the courts and law. No other Australians can do that so why the CFMMEU? Old actors benevolent fund The union movement has engaged Hollywood actor Danny Glover to promote its masthead “change the rules” campaign which portrays employers as crooks ripping off and exploiting workers. The same employers which employ the few remaining union members in the private sector. What was the union movement thinking, having an ageing film star preaching that union line to employers?

I’ll have half The Federal AWU has had about 50 per cent or almost 70,000 members stripped out of its membership books for being false. TWU (NSW) last year lost 20,000 names out of its claimed union membership for the same reason. With union membership crashing to about 10 per cent of the private sector workforce, unions are facing an identity crisis. Only about four per cent of people under 25 are union members.

Numbers down, cash up The Federal union movement is defying the economic idea that reduced demand means reduced income.

Why? The top 15 unions in Australia, while suffering member losses, have grown their combined income from $394million in 2003 to $748million in 2017.

That’s an average of $50million each, plus the advantage of unions not paying income tax. And the ACTU keeps saying big business does not pay enough tax!

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ADVERTORIAL: BATHROOM FEATURE

International bathroom trends 2018 This year, smarterBATHROOMS+ design manager, Vanessa Cook, travelled to Milan for the Salone Internazionale del Bagno. The biannual bathroom exhibition forms part of Milan design week — the world’s leading furniture fair.

The Salone Internazionale del Mobile was founded in 1961 and is a platform for promoting the latest in Italian furniture design. In Australia, we have seen a transformation in bathroom design stemming from these overseas trends. Vanessa came back with some new ideas as well as hopes for the future of Australian bathroom interior design. In this article Vanessa lets us in on her favourite findings, that we will soon see filter through to the Australian market.

“One of the stand-out design features was the freestanding basins crafted using a variety of sculptural and textual techniques, teamed with vanity cabinetry that looked like a piece of furniture,” Vanessa says of the displays this year. Meaning, where bathrooms once had distinctive finishes and fixtures that were unique to the area, now designers are utilising furniture from other rooms so that bathrooms, without tiling, would be “almost like a pared-back living room.”

“It’s intelligent design,” Vanessa says, “because, in most cases, plumbing doesn’t run through the bathroom furniture, meaning items can be easily swapped out for something else. It’s completely detachable, allowing endless future design possibilities within the space.”

“The bathroom furniture was smaller in depth than we are used to seeing in Australia and was fitted out with inner drawers, cosmetic inserts, and lighting. It had all the bells and whistles internally.”

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A prominent new trend is using interchangeable fittings throughout your bathroom. A frame that forms the towel rail, with detachable mirrors, shelves — even soap dishes. In this way, the bathroom becomes adaptable to ensure a space that is uniquely yours.

This new trend indicates a shift away from solitary morning routines. Now, bathrooms are transforming into shared spaces to enjoy with your loved ones as you embark on your daily bathing rituals together.

Along with basins, freestanding baths were a favourite — a trend that Australia has been embodying with increasing popularity. “I didn’t see any built-in baths this year, whereas two years ago I did. The only bath that even came close to the builtin bath that we know in Australia was on black steel legs, and it still fit with the ‘freestanding/sculptural’ design trend.”

Freestanding baths and basins lend the area an air of openness and elegance. “From a design perspective, it’s quite exciting — especially for builders because now they don’t have to worry about critical measures,” Vanessa adds. “Freestanding elements in the bathroom create a perceived abundance of space. With the experimentation of textures and colours, the freestanding baths and basins became the ‘hero piece’ in the bathrooms on display at Milan’s design week.”

Talk to smarterBATHROOMS+ experts today to find out how you can use the latest trends from Milan in your bathroom renovations. Phone: 1300 662 838 or visit smarterBATHROOMS+ website at: smarterbathrooms.com.au

MASTER BUILDER SPRING 2018

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HOUSING

Numbers add up to better times ahead for home builders Residential construction activity remains subdued in WA although it seems close to bottoming, if it hasn’t already (see graph below).

Clearly that is happening - the peak to trough fall so far in dwelling construction is right up there with the recession of the early 1990s, although the earlier downturn took around half the time this one has taken to evolve.

Approvals for the construction of new dwellings appear to have stopped falling although we have seen that before during this cyclical downturn. Nevertheless, quite a bit of the oversupply has been absorbed since the last false bottom in dwelling activity, so this time it probably really is the end of the long decline, although it is still too early to call a vigorous rebound.

Dwelling construction needed to fall steeply in the face of an oversupply of homes built at the tail end of the resource construction boom, when the state’s population was growing at much faster clip.

Population growth is accelerating modestly but only after it hit a historical low of 0.6 per cent in the year to June 2016. It was 0.9 per cent in the year to December 2017 but even the faster rate is still less than half its 25-year average.

Perth’s residential rental vacancy rate soared to a 26-year high of 7.3 per cent in the middle of last year but has since retreated to around 5 per cent, which is still almost 1½ percentage points above its longterm average. Unless population growth suddenly accelerates, most of the adjustment to the oversupply of dwellings will need to occur on the supply side.

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In contrast to the dwelling sector, the peak to trough fall in non-dwelling construction this time is around half what occurred in the early 1990s (see second graph).

As is always the case, the profile of approvals for non-dwelling construction is exceptionally lumpy but they are not pointing to anything much in the way of a consolidation in construction activity. Nevertheless, the real value of non-residential construction of around $1.2 billion a quarter is still twice what it was in the middle of the 2000s, just before China’s appetite for industrial commodities took off.

as renewable energy battery storage technology leaps ahead.

Even apart from lithium, the renaissance of the mining industry is proof that the importance of the production phase of the resources boom to WA’s economy was grossly under-appreciated when talk of gloom and doom dominated conversation at both the big and small ends of town.

And even when the early stages of the downturn in dwelling construction was coinciding with the end of the construction phases of some mega resource projects, construction employment maintained its status as the second largest employer in WA after health care and social assistance (HCSA). While the ageing population means HCSA is unlikely to lose its mantle as the biggest employer in all states, construction will always play a crucial role in the WA economy.

The welcome partial resolution of the GST distribution impasse bodes well for non-residential construction in the next couple of years. So does the mining sector’s renewed appetite for replenishment of production as existing mines are exhausted - not to mention exploration, including for lithium which is in demand

MASTER BUILDER SPRING 2018

MEMBERSHIP

FORMER MASTER BUILDERS ACT EXECUTIVE DIRECTOR KIRK CONNINGHAM HAS BEEN APPOINTED NATIONAL CEO OF THE URBAN DEVELOPMENT INDUSTRY ASSOCIATION, BASED IN SYDNEY.

Retirement beckons Emmott Former HLB Mann Judd managing partner Colin Emmott retired from the firm in June. Mr Emmott began his career in 1973, was made a partner in 1987 and was managing partner from 2006 to 2010.

In addition to his work with HLB Mann Judd, Mr Emmott is a well-respected member of the Perth business community, combining his client work at the firm with volunteer work and various roles in not-forprofit organisations.

In retirement, he will remain the independent chair of Reddifund Ltd and MATES in Construction (Australia) Ltd, as well as the chairman of Senses Australia.

JEFF WILLIAMS HAS BEEN APPOINTED BY SKILL HIRE TO MANAGE ITS APPRENTICE MENTORING PROJECT WHICH IS FUNDED BY THE FEDERAL GOVERNMENT.

Salvos award to Alcock Congratulations to Dale Alcock on receiving The Others Award from the Salvation Army this year. Through Mr Alcock’s leadership, the ABN Group has contributed more than $1.3 million to the Salvation Army’s Red Shield Appeal over the last 10 years.

Mr Alcock is the first West Australian to receive The Others Award. He said it was a humbling experience. He was always keen to find ways to make WA an even better place to live.

New president bowls in Master Builders Bowling Club held its AGM in July. Ross Stewart was elected unopposed as president, taking over from Mel Lemos who was in the role for 12 months.

Kevin Thomas was elected as treasurer, replacing Frank Saliba who had held the position for 10 years. Glenda Dempsey became the first female to be elected to the club’s council in its 51-year history.

Master Builders director Michael McLean was confirmed as patron and was elected to join the new council, along with Trevor Orton as games director.

Master Builder members are welcome to play lawn bowls from about 1:30pm on Wednesday afternoons once a month. Contact Ross Stewart on 9204 3410.

No experience is necessary. The club’s membership has grown by more than 30 members to a total of more than 100 this year.

WWW.MBAWA.COM

Colin Emmott

Vic Master Builders chief to leave Master Builders Victoria CEO Radley de Silva Radley has announced de Silva his intention to retire in December.

Mr de Silva has been employed at MBAV for 17 years. He will continue to represent the Association on the Board of Incolink and the Building Advisory Council.

New Master Builders Bowling Club president Ross Stewart.

CONGRATULATIONS TO BUILT, CELEBRATING 20 YEARS IN BUSINESS, AND JAXON, 60 YEARS THIS YEAR. BOTH BUILDERS HAVE WON MASTER BUILDERS EXCELLENCE IN CONSTRUCTION AWARDS.

CONGRATULATIONS TO MASTER BUILDERS HOUSING COUNCIL CHAIRMAN JACK PLEITER FROM GENESIS HOMES MASTER BUILDERS ON CELEBRATING HIS FIFTIETH BIRTHDAY IN APRIL WITH HIS FIRST SKY DIVE.

CONGRATULATIONS TO WEBB & BROWN-NEAVES ON 40 YEARS IN BUSINESS BUILDING QUALITY HOMES FOR THOUSANDS OF WEST AUSTRALIANS. JOHN STEWART HAS BEEN APPOINTED GENERAL MANAGER OF BOTH WEBB & BROWN-NEAVES AND APG HOMES.

WORKPLACE RELATIONS ADVISOR WARREN EDWARDES HAS LEFT CCI.

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Member Savings Scheme SAVE WITH A MASTER BUILDERS MEMBERSHIP Master Builders members can save through our growing Master Builders Member Savings Scheme.

To access our range of savings visit www.mbawa.com/become-a-member/member-savings/

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KEY CONTACT

Marketing & Partnerships Manager, Kelly Matusik Ph: 9476 9800 or E: kelly@mbawa.com

Keep up to date with the latest information. Follow us on:

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MEMBERSHIP

Get smart: add the latest home tech to building projects The power to adjust lights and climate control at the tap of an app can add value to a home and make it more appealing to clients.

As the demand for homes with smart products rises, technology has become a way to put some extra gloss on a building project and set it apart from the competition.

MyLights and MyAir give full control over lights and air-con alongside the easy-to-use MyPlace system which is smart, innovative and can save on power bills.

MyLights’ smart LED lighting system offers the security and comfort of being able to control lights from anywhere. Monitor which lights are on, dim them to suit the mood and turn everything on or off with a single tap of the MyPlace hub or smartphone app.

MyLights has been developed to integrate seamlessly with premium reverse cycle air conditioning system MyAir. Using the MyPlace touchscreen or app, it’s

easy to tailor the temperature of every room for perfect comfort, organise favourite settings and save energy.

empty for 10 minutes and automatically adjust the temperature by one degree.

Not only do MyAir and MyLights add value, they also save money. Generally, LEDs are more efficient than halogen lights. In fact, LED lighting is up to 80 per cent cheaper to run than halogens.

If the room is still empty after 20 minutes, the temperature is adjusted by two degrees. This small adjustment reduces the room’s energy usage by up to 20 per cent. When someone enters the room, it will return to the original target temperature.

The MyEco function cuts energy consumption by an extra 40 per cent. With MyEco, clients can automatically dim lights so they will barely notice the difference in the room but they will see a big drop in their power bill.

Then with MyAir’s clever zoning, areas can be sectioned off to heat or cool only the parts of the house which are in use.

Further savings can be made with MyAir’s optional motion sensors that can detect when a room has been

Laminex was part of the biggest-ever exhibition held by the Australian Woodworking Industry Suppliers Association recently.

A record number of 13,549 attendees visited the ICC Sydney Exhibition Centre in Darling Harbour over four days, giving Laminex an amazing opportunity to showcase their new releases. Laminex joined more than 120 exhibitors and spoke with many industry people, including tradies, builders, architects and designers.

The stand was well received and proved to be popular. The structure’s sleek design and innovative construction showcased full sheet use of two soonto-be-released woodgrain products: Raw Birchply and Smoked Birchply.

This large-scale demonstration contrasted well with a more intimate, personal feel inside the stand.

Dedicated pod areas introduced several new ranges and designs as well as the Laminex 12 Styles decors.

The tempting aromas of coffee from their own barista attracted crowds and encouraged visitors to hang out and chat.

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Working with Advantage Air means working with local support teams and components made in Australia.

There’s always someone available to help with installation and to guarantee easy after-sale care for the client. Contact Advantage Air at www.advantageair.com.au.

Up to 10 zones can be created to allow for more precise control, causing a significant drop in energy costs.

Laminex-cellent result

The Laminex stand at the Australian Woodworking Industry Suppliers Association exhibition.

MyAir and MyLights can be easily installed during construction.

Each day, Laminex engaged with clients (both old and new) and the team created a buzz of excitement around all new releases. The Australian nature-inspired Landscape Series sparked huge positivity, as did the White Series, the latest Essastone colours, Woodgrains collection and the new decors. There was strong feedback on the 12 Styles decors and countless samples and brochures were carried away. Those looking towards the next big thing also enjoyed the Laminex Trend Forecast presentations, anticipating future design and décor trends from Laminex’s Design Marketing Manager, Catherine Valente and Product Design Manager, Neil Sookee.

And the place to be at AWISA was the Laminex Bar during happy hour. Crafted from AbsoluteGrain and AbsoluteMatte, it was a stylish spot to linger with a drink, chat with the team and check out videos on the big screen of new products, trends and even the Laminex manufacturing process.

AWISA attendees also visited Hive by Laminex in Alexandria and experienced the new showroom concept where traditional design meets new digital thinking.

The event was a great success in generating positive engagement and demonstrating Laminex’s commitment to innovation and product leadership, along with service excellence.

MASTER BUILDER SPRING 2018

MEMBERSHIP

Master Builders welcomes new members A Salerno Advanced Ceiling Restorations (WA) Alinea Building Alphazeta Group Aluminium Cladding Installations Arc Homes Architectural Designing Solutions Arcual Pty Ltd Avopiling (WA) Pty Ltd Bacic Group Pty Ltd Bespoke Building & Constructions Braven Group Services Creative Carpentry (WA) Decmil Australia Pty Ltd DGR Building Solutions Direct Carpentry WA Pty Ltd Driftwood Carpentry DRK Patios ECC United Pty Ltd Element Construction WA Fremantle Home Improvements Pty Ltd GLX Construction Goldfields Homes Hoist Torque Australia Pty Ltd Lexo Developments Pty Ltd Mark Wells Meta Maya Construction Pty Ltd New Imperial Co Oceanside Plumbing and Gas ODF Electrical Outline Building and Design Over 55 Lifestyle Villages Pty Ltd Paul Wettinger Pilbara Sheds Pride Homes & Developments Pty Ltd Probuild Technologies Project Fruition RJP Project Management (WA) Pty Ltd RWK Accountancy Southern City Sheds Subdivision Experts TADWA Tailorwood Construction Pty Ltd Timothy Elward Tradies Express Tuscan Tiling Vinn Build Pty Ltd West Force Construction Western Australian Contracting Pty Ltd WWW.MBAWA.COM

Rob Menzies was awarded Master Builders Honorary Membership in June. He is pictured with Association president Rob Spadaccini, outgoing regional manager Di Gilleland and Master Builders’ director Michael McLean.

Honour for Menzies Broome has a reputation as one of the most desirable places in WA and Rob Menzies deserves some of the credit for that image.

Mr Menzies, director of Roebuck Estate Development, has been granted Honorary Membership of Master Builders for his work to improve the Kimberley resort town.

“Rob Menzies is a passionate advocate about growing the Broome economy and making it a better place for its residents and visitors,” Master Builders’ director Michael McLean said. “As Rob’s vision aligns with our builders and other members in the Kimberley region, he has effectively become one of our local ambassadors.”

Mr McLean said Roebuck Estate Development had been the major local sponsor of the Master BuildersBankwest Building Excellence Awards for the Kimberley and Pilbara regions for the last 15 years, which demonstrated a huge commitment to the building industry.

“The opportunity to host our annual awards alongside Zanders at Cable Beach, one of the most idyllic settings in Australia, came about because of Rob Menzies,” he said.

“He is a previous Regional Member of the Year with Master Builders and in 2014 was named one of 12 Champions of Master Builders North West Branch first 50 years – the only person from the Kimberley to receive this accolade.

“Rob Menzies has enhanced Master Builders’ status in the Kimberley and Pilbara regions and we are confident he will continue to do so.”

Master Builders’ president Rob Spadaccini presented the Honorary Membership plaque to Mr Menzies in June, at the annual awards function in Broome. Mr Menzies said he was humbled to receive the honour and had enjoyed every opportunity to assist Master Builders in conjunction with his job at Roebuck Estate Development.

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BUILDING BUSINESS

Explaining super in other languages Did you know that, aside from English, the most common languages spoken in Australia are Mandarin, Arabic, Cantonese, Vietnamese, and Italian?

According to the last Census in 2016, English is the only language spoken at home for 72 per cent^ of the population and a considerable proportion of first and secondgeneration migrants are bilingual.

When you look around construction sites you can see how diverse the workforce is.

Cbus works hard to ensure there are services to support workers too – no matter which language they speak.

It’s important that working Australians can access and understand important information about their superannuation account and their entitlements at any time.

As Australia’s largest industry super fund designed specifically for the construction, building and allied industries, Cbus acknowledges that the workers and employers in this industry come from a wide range of different nationalities.

Our website at www.cbussuper.com.au has a fact sheet on superannuation at a glance in Arabic, Chinese, Croatian, Greek, Italian, Korean, Macedonian, Serbian, Spanish and Vietnamese. ^2016 Census QuickStats, 6 July 2018, This information is about Cbus. It doesn’t take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement and related documents to decide whether Cbus is right for you. Contact 1300 361 784 or visit www.cbussuper.com.au for a copy.

Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262

The ever-changing world of superannuation is hard enough to understand without adding the challenge of trying to comprehend it in a language which is not the one you’re most comfortable using.

That’s why Cbus Super Fund has fact sheets in other languages on some key things to know about superannuation plus a free interpreter service available over the phone on 1300 361 784.

Reddifund protects cashflow during redundancy payouts Redundancy payment obligations can have a significant cashflow impact for companies in WA’s building and construction industry and this can happen during a financially challenging time.

Reddifund gives employers important cashflow protection by allowing them to contribute regular payments that can then be released to workers in circumstances leading to redundancy.

Previously known as the WA Construction Industry Redundancy Fund, Reddifund is backed jointly by major building and construction associations, including the MBA, and unions. It not only ensures that workers receive their redundancy payments but lifts the administration burden from companies in managing these requirements, as long as the employer has made their contributions to the fund to meet award obligations.

Reddifund Chief Executive Officer, Kieron Gubbins says a lack of understanding of redundancy award obligations can leave employers unprepared when they have to come up with the funds to pay out redundancy entitlements.

“While it is not mandatory for employers to contribute to Reddifund, the service we offer, at no additional cost to the employer, can relieve the stress for both employers and their workers when these unfortunate situations occur,” Mr Gubbins said.

The Building and Construction General On-site Award of 2010 mandates that after a year of continuous service employees are entitled to a minimum of two and a half weeks’ redundancy or severance pay. This increases exponentially right up to eight weeks pay for more than four years of service.

In addition to providing for these payment obligations, Mr Gubbins said many building and construction employers don’t realise the tax benefits available by contributing into Reddifund.

“Trusting Reddifund with the management of monthly redundancy allowance payments means tax deductibility, reduction of liabilities and less administration for employers,” he said.

Reddifund has been managing redundancy entitlements on behalf of WA-based building and construction industry employers for more than 25 years and supports workers with payouts in the unfortunate event of redundancy.

There are approximately 70,000 active on-site building and construction workers in Western Australia but Mr Gubbins said a low proportion were protected by Reddifund.

“Redundancy obligations apply to most employers in the industry, large or small, and can extend to workers who leave an employer after 12 months, with the only exception being dismissal for inappropriate behaviour.

“Through Reddifund, employers contribute as a provision for these events to ensure that their workers automatically qualify for payments.”

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MASTER BUILDER SPRING 2018

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