2015 MB NSW Magazine Jan-Mar

Official Magazine of the Master Builders Association of NSW | Issue One | Jan - Mar 2015

MBA YOUNG BUILDER OF THE YEAR AWARD GOES TO FEMALE BUILDER WELCOME BOOST FOR ABORIGINAL PARTICIPATION IN CONSTRUCTION

NSW PREMIER LAUNCHES MASTER BUILDERS TRAINING AND EDUCATION CENTRE ■■ KEY POLICY PRIORITIES FOR INDUSTRY IN 2015 NSW ELECTION ■■ LATEST MCA AWARD WINNERS FOR BRICK & BLOCK LAYING REVEALED ■■ MAJOR CHANGES TO HOME BUILDING LAWS

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2

contents

IN THIS ISSUE: REGULARS

Contact List 4 President’s Viewpoint 8 Executive Director’s Viewpoint 10 Newsbrief 19 Regional Roundup 24 Dates For Your Diary 71 The Way We Were 72

FEATURES

Premier Opens New $10m Training Hub Policy Priorities – State Election March 2015

12 14

Women in Construction Serena Guidice – Young Builder of the Year

34

Housing Major Changes to Home Building Laws Building activity to strengthen Hiring Intentions Rise With Housing Boom

35

Apprenticeship 40 Apprenticeship Service Has an All-Inclusive Hourly Rate Commentary: What Are Your Skill Level Expectations For an Apprentice?

EDITORS: Richard Szabo and Bridget Sweeney LAYOUT: Carol Taylor GRAPHIC DESIGN TEAM: Byron Bailey, Andrew Crabb NATIONAL SALES AND MARKETING MANAGER: Trish Riley SALES MANAGER: Peter Shepherd EMAIL: peter.shepherd@crowtherblayne.com.au ADVERTISING SALES: Peter Shepherd, Craig Flenley, Dean Wedding, Rose Delosreyes and Liam Daly PRODUCTION: Brooke Travers PRINT: Newstyle DISTRIBUTION: Newstyle CONTACT DETAILS PO Box 824 Surfers Paradise QLD 4217 TEL: 1800 222 757 FAX: 1800 063 151 EMAIL:publications@crowtherblayne.com.au WEB: www.crowtherblayne.com.au

CAMS CAMS – Three Years On

42

Training Training – A Wealth Of Opportunities

44

Aboriginal Affairs 46 Aboriginal Participation in Construction Workplace Health & Safety A New Safety Standard for the Building and Construction Industry Effective Management of Workplace Injuries in 2015 Work Health Safety Training Coming to Master Builders

Insurance 54 Negotiating Builders’ Warranty Framework Technology 55 Introduction to Plusspec Which Smart Phone Do I Choose?

Industrial Relations Accessorial Liability Under the Fair Work Act New Provisions for Employee Incentive Schemes

58

Finance 60 Free Financial Consultation for Members and Their Families

MEMBERSHIP

Making the most of your membership Disclaimer: The Publisher and the Master Builders Association of NSW, their employees and agents take no responsibility for any inaccuracies or omissions. The opinions are those of the contributors and not necessarily of the Publishers nor of the Association. No warranty is given and no liability is accepted.

Products and Services appearing in Master Builder are not necessarily endorsed by the Publisher or the Association.

While every care has been taken during production, the publisher(s) do not accept any liability for errors or omissions that may have occurred.

49

61

GENERAL FEATURES MCA Awards for Brick & Block Laying Building in Bush Fire Zones Training and equipment

27 62 65

What’s New

66

Directory

70

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

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4

contact list MASTER BUILDERS ASSOCIATION OF NEW SOUTH WALES 52 Parramatta Road, Forest Lodge NSW 2037 / Private Bag 9, Broadway NSW 2007 Tel: 02 8586 3555 | Fax: 02 9660 3700 Email: enquiries@mbansw.asn.au Website: www.mbansw.asn.au | ABN 96 550 042 906

HEAD OFFICE

INDUSTRIAL RELATIONS AND SAFETY

EXECUTIVE BOARD

Director Construction Senior Safety Officer Industrial Relations Officers

Safety Officer IR Administration Officer Secretary

Paul Maginnity Ross Mitchell Gordon Leggett Scott Nash Martin Patience Simon Pilcher Chris Calderbank-Park

President Deputy President Immediate Past President Vice President Vice President Vice President Vice President Brian Seidler Amanda de Vries

8586 3503 8586 3507

Luke Hueston Edwina Lyall Malcolm Foung Adam Myers Erroll Wong Adam Fawcett

8586 3519 0412 806 700 8586 3556 8586 3501 8586 3568 0466 770 910

Daniel Vine Jayne Pan Joel Beater Bill Korakis

8586 3566 8586 3528 8586 3565 8586 3541

Ogarit Kelley

0414 919 194 1300 760 366

Graham McGuiggan Paul Love

Mark Shearwood Joan Ah-Hen Samantha Bell Susie Bell

8586 3554 8586 3540 0413 306 556 8586 3520 8586 3515 8586 3572 8586 3581

Timithy Rolls David Bouwmeester Vanessa Herrara Madison Brown Dean Edser Jade Lane Nicole Midolo Carson Gao Michelle Vella Jason Kim Stephanie Guan Penny McDonald Andrew Turner Sharon Eakin Receptionist William Louie Nicole Daws

8586 3560 8586 3534 8586 3577 8586 3576 8586 3548 8586 3852 8586 3521 8586 3559

Laura Weston

8586 3588 8586 3557

Teigen Morier Tess McDonald Paulo Atienza Ben Mitchell Frank Luppino

8586 3542 8586 3551 0423 025 380 0412 499 754 0401 998 853

MBA INSURANCE SERVICES State Manager Senior Account Manager Account Executive - General

Authorised Representative - Capital & Construction Risk Managers Pty Limited Account Executive - Home Warranty

Account Executive - Warranty National Business Development Manager (Surety)

MEMBER SERVICES Manager Member Services Membership Coordinator

Membership Representative Member Services - Administration Member Services - Administration Member Services - Administration

8586 3544

8586 3578 8586 3553 8586 3588 8586 3563 8586 3514 1300 884 315

NORWEST EDUCATION CENTRE 5 Burbank Place, Baulkham Hills NSW 2153 Reception Executive Office

APPRENTICESHIP SERVICES Apprenticeship Payroll Officer Apprenticeship Field Officer Apprenticeship Field Officer Apprenticeship Field Officer Apprenticeship Field Officer

CONSTRUCTION APPRENTICESHIP MENTORING PROGRAM - (CAMS) Government Projects & Programs Manager Apprenticeship Mentoring Officer

Omesh Jethwani Jack Long

8586 3539 8586 3524

Peter Meredith

4323 4588

Robert Collings Hannah Shephard Renee McKeown

8586 3517 8586 3517 8586 3517

HOUSING Director - Housing

LEGAL Head Solicitor Solicitor Legal Assistant

Susan Manning Helen Harris Amanda Kelly

8586 3506 8586 3564 8586 3504

Director, Operations

Craig Donovan

8586 3537

Steven Swan

8586 3562

Arthur Johnson Strebre Delovski Leon Kopcikas Frank Chevell Rheannon Vea Vea Bridget Delmore

8586 3508 8586 3511 8586 3509 8586 3567 8586 3527 8586 3510 8586 3526 8586 3530 8586 3546

MARKETING AND COMMUNICATIONS Marketing and Communications Manager

FINANCE & ADMINISTRATION Director Finance & Administration Accounts Supervisor Credit Control Manager Credit Officer Inventory & Property Administration Officer Accounts Payable Officer Reception #2 Fishbowl #2 Charles Martin Room

INFORMATION TECHNOLOGY

TRAINING Compliance and Quality Officer Short Course Coordinator Short Course Administrator Short Course Administrator Qualifications Coordinator Qualifications Administrator Qualifications Administrator Cert III Coordinator Cert III Co ordinator Assistant Cert III Administrators Admin Assistant in Cert III Business Administration Trainee Cert III Head Trainer Training Accounts /Administration Coordinator Laura Weston Administration Assistants Administration Trainee MBA Skill Recognition Centre 1

Awards Coordinator Assistant Awards Coordinators Special Projects Officer

OPERATIONS

MASTER BUILDERS FINANCIAL SERVICES Broker

8586 3535 8586 3552 8586 3574 8586 3573 8586 3502 8586 3522 8586 3531 8586 3523

EVENTS & BUSINESS DEVELOPMENT

EXECUTIVE Executive Director Executive Assistant

Peter Glover David Solomon Rod Grace Nicholas Arends Iain Jarman Chris Schultz Judy Macgregor Beverly Glover

IT Systems Manager IT Support/Webmaster

Amanda Kernaghan 8586 3580 Alexander Ashley-Carrington 8586 3525

RECEPTION Receptionist

Joanne Papageorge Daniela Fraumeni

8586 3555 8586 3555

REGIONAL OFFICES NEWCASTLE OFFICE Level 1, 165 Lambton Road, Broadmeadow NSW 2292 Tel:

Hunter Region Manager Len Blakeney Office Administrator Sarah Croft Receptionist Amy Porter Industrial Relations Officer Ben Ziolkowski

Shona D’arbon Safety Officer John McGhee Trade Events & Divisional Coordinator Haley Tibbetts Membership Representative Luke Reeves Events and Training Coordinator Kerri Richards MBA Insurance Services - Newcastle Leeanne Farmer

4953 9400 4979 0101 4979 0103 4953 9400 4979 0107 4979 0102 4979 0112 4979 0106 4979 0109 4979 0105 0466 777 057

NORTHERN REGIONS Shop 1, 97 Tamar Street, Ballina NSW 2478 Tel: Regional Coordinator Membership Representative Member Services Representative

Juliet Pratley Graham Marchant Marlee Rudgley

6681 4266 0421 050 395 0428 412 784

Peter Meredith Helen Tinson Lesley Potter

4323 4588 0412 694 001 4323 4588 4323 4588

GOSFORD Unit 7/4 Stockyard Place, West Gosford NSW 2250 Tel: Director - Housing Office Manager (Mon/Wed) Office Manager (Tues/Thurs)

SOUTHERN REGIONS Unit 1, 171 Princes Highway, Ulladulla NSW 2539 Tel:

Regional Coordinator Lynn Smith Member Services Representative Debbie McDonald

4454 1955 0418 633 297 4454 1955

ALBURY/WODONGA 35 Hovell Street, Wodonga VIC 3690 Tel: Regional Manager Office Manager Administration Assistant

Steve Donaghey Lesley Donaghey Pauline Meade

6058 2000 0402 044 075 6058 2000 6058 2000

PORT MACQUARIE Unit 3, 12 Jindalee Road, Port Macquarie NSW 2444 Tel:

Member Services Representative Kerrie Clark

6581 4033 6581 4033

WOLLONGONG Unit 3, 29-35 Princes Highway, Unanderra NSW 2526 Tel:

Regional Coordinator Michael Hart Member Services Representative Ruth Billington

4272 9409 0419 140 126 4272 9409

MATES IN CONSTRUCTION Hotline: M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

8586 3575

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PROOFEX ENGAGE

Innovative anti-tracking, pre-applied waterproofing system for below-ground waterproofing The Proofex Engage waterproofing system has successfully waterproofed millions of square metres of below-ground structures.

It can be found in projects in many countries around the world and is quite simply one of the best performing cost-effective below-ground waterproofing solutions available today.

Parchem have introduced the innovative Proofex Engage system, which incorporates a unique cell mesh that mechanically bonds to freshly placed concrete giving a tenacious waterproof seal, preventing water migration even if ground settlement occurs. It is installed rapidly with no need for blinding concrete, priming or protection and can be trafficked immediately after application. It is also gas resistant and highly durable and is unaffected by contaminants within the ground. Quality is assured through BBA and EN13967:2004 and the system is suitable for use in accordance with BS8102:2009 Grades 1, 2 and 3.

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NON WATER-TRACKING In the unlikely event of damage to the membrane during installation, the smart anti-tracking mesh design of Proofex Engage will prevent water tracking between the membrane and the concrete.

Proofex Engage has been tested to ASTM D5383 and shows no lateral water migration when tested at 70m hydrostatic water pressure.

STRONG MECHANICAL BOND The unique mesh design of Proofex Engage gives a permanent tenacious mechanical bond to freshly placed concrete. This bond is not dependent on any chemical reaction and can be assured each time concrete is cast.

The heavy-duty mesh design and properties result in a robust, proven membrane which is ideally suitable for project conditions.

PERMANENTLY BONDS TO STRUCTURAL CONCRETE PVC membranes, self-adhesive and torch-on membranes can collapse where ground settlement takes place.

This can lead to stretching and tearing of the membrane and can result in leakages. Proofex Engage however, will remain in place fully bonded to the structural concrete assuring complete waterproof integrity even if ground settlement occurs.

NO BLINDING CONCRETE REQUIRED Blinding concrete is preferred, however Proofex Engage can be placed directly on top of a well compacted smooth granular fill substrate. A broadcast of damp sand on top of the granular material is useful.

Parchem offers the most comprehensive range of below-ground waterproofing product systems, manufactured to the highest quality standards backed by independent test certificates. Our wealth of experienced technical experts and specification managers will help you find the best system solution for your project.

Removal of the blinding concrete means less concrete and less labour time but also means less concrete truck movements which not only saves time and money but is more environmentally friendly.

NO MEMBRANE PROTECTION REQUIRED Proofex Engage is a robust, heavy duty membrane with millions of square metres in projects throughout the world.

The structural steel reinforcement is laid directly on top of the membrane ready for the structural concrete placement. There is no requirement for screed protection which saves valuable time and money.

BENEFITS TO OWNERS / DESIGNERS An ever increasing level of importance is being placed by owners and designers with regards to structural integrity, costeffectiveness and durability. Parchem recognise this, and Proofex Engage with its proven history, excellent holistic cost benefits and independent certification offers an unparalleled system solution for below-ground structures to combat these demands. It provides owners, clients and designers with a high performance system backed by excellent customer/technical service delivered through a comprehensive international network.

BENEFITS TO CONTRACTORS / INSTALLERS Proofex Engage is designed for typical site conditions. It is heavy duty, robust and can be rapidly installed with easy to apply jointing ancillaries which are system-compatible. The system has a long track record; however Parchem can offer on-site training assistance for specific projects, delivered through teams of local experts. Contact your local Parchem office for more details.

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8

president’s viewpoint

PRESIDENT’S VIEWPOINT

President Paul Maginnity

In reviewing our Association minutes over the past three years, it was noted that our Council of Management endorsed a recommendation to search for a property suitable for establishing a training and education centre – the preferred location was Western Sydney.

I am pleased to announce that one of the Association’s key recommendations to futureproof the MBA has been realised.

can meet the demand and make the most of future opportunities in the NSW building and construction industry.

Our Association has funded, through our own members’ money, the development of this facility for our industry – one which we are very proud of, and one with the ability to grow – and I should emphasise this signifies the commitment of the MBA’s contribution to addressing skill shortages, and producing better skilled builders and tradespeople for the future.

I thank our fellow MBA Council of Management members, the MBA Executive Committee and our Past presidents, who had the foresight to make the call of establishing such a worthwhile education and training centre.

As we all know NSW is the powerhouse state in Australia, with many anticipating that we in NSW will lead our country to sustained growth.

However, all the statistics show that our industry has an ageing work force, and we must work to attract young people, so we

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

MBA is most proud to make this tangible contribution to the future skills base of our industry, and we look forward to offering professional and worthwhile training to all industry sectors.

Further, I thank the staff of MBA NSW who worked tirelessly to bring to fruition the aspirations of our Council of Management and the Association.

Paul Maginnity MBA/NSW PRESIDENT

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10

executive director’s viewpoint

EXECUTIVE DIRECTOR’S VIEWPOINT This edition of Master Builder outlines the findings of an industry survey that the MBA undertook over recent months.

The survey identifies “Policy Priorities”, which form the basis of a document and has been forwarded to the various political parties in NSW for their consideration and response prior to the next State Election – scheduled for 28 March ’15.

Executive Director Brian Seidler

The Master Builders Association of NSW “Policy Priorities 2015” documents key policy priorities for the building and construction industry in NSW. They have been developed through active surveying, consultation and participation with building contractors, specialist contractors and key industry stakeholders. Furthermore, these policies have been endorsed by the Association’s Council of Management.

There is general acceptance that opportunities for those who undertake work in the building and construction industry in NSW have substantially increased, particularly in recent times.

There is also acceptance of so-called macro priorities by the Master Builders Association of NSW and property sector groups that in order to continue this growth in the NSW building and property development sectors, reform in certain areas must take place.

These areas include: • Issue of housing affordability and cost of land • Reduction of land and payroll taxes • Timely delivery of much needed land supply • Capping of local government levies There are additional issues, both at a macro and micro level affecting the industry’s operation which, if addressed, would lead to a more vibrant building and construction industry.

These issues include: • Establishment of an independent, centralised authority to administer, regulate and oversee the building and construction industry (Independent Building Commission) • Extension of the home building legislation to cover the key specialist services provided by architects, engineers and designers • Improved Security of Payment to cover outcomes for the client/builder contract relationship through early intervention • Apprenticeships/traineeships – all apprentices/trainees to be covered by Workers Compensation at no liability to the training employer, for the full term of the apprenticeship. The introduction of a ratio of apprentices to tradespeople on all State Government-funded projects, and the removal of payroll tax obligations for apprentices for the full-term of the apprenticeship • A complete review of the existing Home Warranty Insurance Scheme • Developing a workers compensation system that is more equitable and addresses the issue of non-specific work injuries • Establishment of a well-organised building industry agency to act as a deterrent against unlawful conduct and coercive behaviour • Reform to work, health and safety legislation regarding right of entry provisions for union officials • Review of cross border region construction red tape, so as to bring certainty to contractors building in various jurisdictions Most of the issues identified above can be implemented without impacting greatly on the NSW budget, yet the savings and efficiencies gained through the introduction of such measures would be significant.

As mentioned above, the Association has forwarded a copy of our document to the various State political parties for their response.

We will circulate a copy of their responses to all members prior to the election.

Brian Seidler EXECUTIVE DIRECTOR

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

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12

feature / premier

PREMIER OPENS NEW $10 MILLION TRAINING HUB FOR $50 BILLION INDUSTRY Premier Mike Baird has officially opened Master Builders’ (MBA) new state-of-the-art training hub for New South Wales’ $50 billion building and construction industry.

Premier Mike Baird with MBA apprentices

Premier Mike Baird and MBA NSW President Paul Maginnity officially open the facility

Nearly 100 people celebrated the official opening of MBA’s new and state-of-the-art training centre on Thursday 19th of February 2015.

The $10 million hub is designed to help meet the skills shortage being faced by the industry, deliver new job opportunities for young men, women and Indigenous apprentices in the booming construction industry.

“Housing is moving [forward] and the infrastructure we want to build is going to provide a wonderful opportunity for our apprentices of the future, and what we need is for them [our apprentices] to be trained and skilled, and to have the capacity to build the world’s best infrastructure and housing – and that is exactly what you will see here,” the Premier said.

“We have got to have the highest quality and standards, and that is what we want for our apprentices. And you know when you are going to get a Master Builders apprentice, you are getting the best of the best – the highest standard – and I think that is something we should all aim for.”

The trade-training centre is a purpose built onestop-shop training hub, to provide high quality training to young people, and make them ‘job ready’ for careers in the building industry.

The new centre opening comes at a perfect time as Master Builders’ National Survey of Building and Construction recorded a sharp rise in builders’ intentions to put on more apprentices, with a third of respondents indicating they will

Premier Mike Baird with MBA NSW Executive Director Brian Seidler and MBA NSW President Paul Maginnity

give more opportunities to young people to learn a building trade in the next six months.

MBA NSW has trained thousands of students over the past 2.5 years.

“Master Builders in NSW has trained nearly 3000 students in certificate two, three four building diploma, advanced building diploma – not to mention specific industry courses, such as waterproofing, asbestos removal, high-risk licensing and [there was] also much work carried out in the traineeship area, in the infrastructure and civil contracting sectors of our industry,” MBA NSW Executive Director Brian Seidler said.

“We envisage there are many opportunities to educate, upskill and train the future workforce of all sectors of the industry, including residential, commercial – and, particularly relevant these days, infrastructure and civil construction where we have had success with increasing Aboriginal participation through traineeships and apprenticeships.”

MBA recently entered into a number of partnerships in this sector to not only provide extensive training, but also a training network across NSW. “The future of our industry lies within a wellresourced, motivated and skilled workforce,” Seidler said.

MBA NSW president Paul Maginnity revealed the $10 million training centre was entirely funded

by MBA members. It is the Association’s largest investment in 50 years.

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

Premier Mike Baird addresses the audience on stage

“Our association has funded, through our own members’ money, the development of this facility for our industry – one which we are very proud of and have the ability to grow,” he said.

“This signifies the beginning of the MBA’s contribution to addressing skills shortages, and producing better skilled builders and tradespeople for the future as we need.

“I thank my fellow MBA NSW Council of Management members, the MBA NSW executive committee and our past presidents, who had the foresight to establish such a worthwhile education and training centre.

“We thank the staff of MBA NSW who worked tirelessly to bring to fruition the aspiration of our council of management.

Specifically, on this occasion, I would like to acknowledge Craig Donovan for his hard work on this project.”

The opening was attended by nearly 100 people including NSW Premier Michael Baird, State Fair Trading Minister Matthew Mason-Cox, State Member for Baulkham Hills David Elliott, Hills Shire Councillor Mark Taylor, State Member for Riverstone Kevin Conolly, Liberal candidate for Blacktown Raman Bhalla, Work Cover WHS executive director Peter Dunphy, TAFE NSW building and construction faculty director John Humphrey, Industrial Relations Commissioner Inaam Tabbaa, Council of Management Executive Committee, the Divisional President, MBA apprentices, trainees and mentors.

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14

policy priorities

KEY POLICY PRIORITIES FOR THE BUILDING AND CONSTRUCTION INDUSTRY IN NSW – STATE ELECTION MARCH 2015 On the 28 March 2015 NSW will go to the polls for a State Election.

Members may recall that in February 2011, the MBA released its Policy Priorities Document for the then upcoming March 2011 State Election.

Over the last term of the NSW Parliament (2011 - 2015) the industry has seen legislative changes (some significant) which directly addressed a number of policy priorities identified by the MBA in this document, and which we see as beneficial for building contractors and industry as a whole. The MBA has once again surveyed the industry, and we set out below the issues the industry has identified that need attention. These form part of the MBA Policy Priorities for the 2015 Election. A copy of these Policy Priorities has been forwarded to the main political parties for their comment. The MBA will forward responses to our document to members prior to the State election at the end of March.

EXECUTIVE SUMMARY – POLICY PRIORITIES 2015 The Master Builders Association of NSW (Master Builders) “Policy Priorities 2015”, documents key policy priorities for the building and construction industry in NSW. These priorities have been developed through active surveying, consultation and participation with building contractors, specialist contractors and key industry stakeholders. Further, the Association’s State Council of Management has endorsed these policies.

There is general acceptance that opportunities for those who undertake work in the building and construction industry in NSW have substantially increased, particularly in recent times.

There is also acceptance of so-called macro priorities by the Master Builders Association of NSW, and property sector groups that in order to continue this growth in the NSW building and property development sectors, reform in certain areas must take place.

These areas include: • Housing affordability and cost of land • Reduction of land and payroll taxes • Timely delivery of much needed land supply • Capping of local government levies There are however, additional issues, both at a macro and micro level affecting the industry’s operation which, if addressed, would lead to a more vibrant building and construction industry.

These issues include: • Establishment of an independent, centralised authority to administer, regulate and oversee the building and construction industry (Independent Building Commission) • Extension of the home building legislation to cover the key specialist services provided by architects, engineers and designers • Improved security of payment to cover outcomes for the client/builder contract relationship through early intervention • Apprenticeships/traineeships – all apprentices/trainees are to be covered by Workers Compensation at no liability to the training employer, for the full-term of the apprenticeship. This includes the introduction of a ratio of apprentices to tradespeople

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on all State Government-funded projects, and removal of payroll tax obligations for apprentices for the full term of the apprenticeship • Complete review of the existing Home Warranty Insurance Scheme • Developing a workers compensation system that is more equitable and addresses the issue of non-specific work injuries • Establishment of a well organised building industry agency to act as a deterrent against unlawful conduct and coercive behaviour • Reform to Work, Health and Safety legislation regarding right of entry provisions for union officials • Review of cross border region construction red tape, so as to bring certainty to contractors building in various jurisdictions Most of the issues identified above can be implemented without impacting greatly on the NSW budget, yet the savings and efficiencies gained through the introduction of such measures would be significant.

Sincerely, BRIAN SEIDLER EXECUTIVE DIRECTOR February 2015

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ESTABLISHMENT OF A BUILDING COMMISSION In 2002 an inquiry into the Quality of Buildings in NSW (Campbell Report) reported there were a number of structural problems within the home building process, including the fragmentation of the regulatory regime. An example was provided whereby certifiers and building practitioners were regulated by different government agencies. A key recommendation of the Campbell Report was for establishment of a Home Building Compliance Commission, independent of the State Department of Fair Trading.

Master Builders supported the recommendation. However, it sought as a policy position that the establishment of a Building Commission should hold an overarching responsibility for all sectors of the NSW building and construction industry – and not just the residential sector.

Master Builders has, for over a decade, continued to present this key policy position in order to consolidate the regulation and administration of the building and construction sector.

Recent inquiries into the NSW building and construction sector have given support, and also made recommendations for establishment of a single state building regulator.

The 2013 independent Bruce Collins Inquiry into Insolvency in the NSW Construction Industry made the key recommendation that the NSW Government undertake a cost benefit analysis for the establishment of a separate autonomous statutory authority called the “NSW Building and Construction Commission”.

At the time of preparing this document, some 19 months since the Collins recommendation there has been no outcome to the undertaking provided by the government to the Collins recommendation. It should be noted, however, the current State Government committed to undertake the cost-benefit analysis in 2015.

The NSW Independent Pricing and Regulatory Tribunal (IPART) has also given its support for establishment of a single building authority, to improve building compliance and enforcement. More recently, the NSW IPART outlined its recommendation to establish a single state building regulator in its 2014 draft report into Local Government Compliance and Enforcement.

While other state and territory jurisdictions have, for some time, taken a more coordinated and consolidated approach than NSW in recognition of the significance of a vibrant building and construction industry. There has been a recent inquiry and review into the Victorian and Queensland building commissions. While the outcome of these inquiries resulted in structural changes to the effect of establishing new authorities in both Queensland and Victoria, nevertheless these new authorities provide a far greater coordinated approach to building regulation and oversight than currently exists in NSW.

applicators is under the jurisdiction of Fair Trading and not the DoPI nor the BPB.

A clear example of the duplication of industry regulation and administration is licensing of the residential building sector by Fair Trading and separately, the accreditation of building certifiers by the Building Professional Board (BPB) – the latter itself an agency of the Department of Planning and Infrastructure (DoPI).

Master Builders Policy Master Builders advocates the establishment of a single state building regulator, a deserving response to the industry’s contribution to the state economy. A single building regulator will, over time, draw together the current

Further to this, the Self Insurance Corporation (SICorp) has responsibility for the administration of the Home Building Compensation Fund (previously known as Home Warranty Insurance Scheme) of which in effect, acts as a de facto licensing scheme, by ensuring builders meet rigorous criteria for eligibility to procure Home Building Warranty Insurance Compensation, previously known as Home Warranty Insurance.

An example of the duplication and inefficiencies due to the responsibilities of the three agencies above, can be seen by the recent amendments to the Home Building Act, which will see the establishment of a Public Register of HWI certificates, which will be in addition to the current public registers for licensing administered by Fair Trading and the register for accredited certifiers administered by the BPB clearly a simple example where a single authority would be positioned to establish a consolidated register, providing greater access for consumers and industry practitioners.

Recent wide-ranging regulatory reform process of building and building related legislation (e.g. planning, home building, strata) has provided clear evidence of the difficulties and lack of coordination where building and building related legislation is administered across different agencies. For example, chapter eight of the planning white paper proposes greater obligation on waterproofing installers to address the recurring issue of water proofing defects in strata buildings. However, the regulation of waterproofing installers and

This current wide-ranging reform process also has given merit to a well-supported industry view that a consolidated Building Act would likely to have made the process of wide regulatory reform across planning, strata and home building easier, and ensured greater coordination and cooperation in reviewing – and a single primary construction Act. Indeed the establishment of a consolidated Building Act clearly dovetails into the establishment of a single building regulatory authority.

fragmented approach of various departments and government agencies regulating and provide oversight of the NSW building and construction industry.

Home Building Compensation Fund (Home Warranty Insurance) Home Warranty Insurance, or the Home Building Compensation Fund (HBCF) as it is now known, remains a prominent issue and priority for members and the wider industry.

While Master Builders seeks further review and changes to the scheme, we recognise the problems inherited by the NSW Government as a consequence of the failed privatisation of the scheme in 1997.

A priority issue is that the scheme operates as a de facto licensing scheme, the impact of the scheme can diminish the authority provided by a builder’s licence whereby a person who holds a current builder licence is authorised to contract for and undertake all classes of residential build work. However, the constraints and eligibility conditions of the HBCF can effectively diminish or control the legislative authority provided by a builders licence, to the extent the HBCF can arbitrarily determine if a builder can build projects, exceeding the threshold of $20,000.

Master Builders contends that the following proposals can further provide relief to builders without unnecessarily compromising the scheme: • Split the level and value of cover between claims relating to defects and noncompletions • Removing annual project limits and reinstating project eligibility for the number of jobs as each project is completed

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• Increasing the threshold for non-review of eligibility, especially for those eligibility conditions related to low turnover and project numbers • Brokers are positioned as the main conduit for communications between the licensed • builder and the HBCF and therefore it is critical that brokers have a comprehensive understanding of the scheme, and can appropriately facilitate the needs of the builder client. It is proposed that there should be a rationalisation of broker services to only those brokers who are sufficiently resourced, and have the capacity and knowledge to facilitate their builder client through the various nuances of the scheme • Requiring consumers to be more discerning when choosing a builder rather simply focusing on price, by limiting the benefits of the scheme and/or applying a higher claims excess; as two examples • Further limiting the statutory cover to subsequent purchasers by apply the doctrine of ‘buyer beware’ where the purchaser has the benefit of expert advice in relation to the condition of the property and consequently well-positioned to make a decision to either purchase the property of negotiate the purchase price based upon expert advice. Any consequential loss in relying on such advice should be allocated to the expert providing the advice or report by requiring such person to hold appropriate insurance cover • Exempting or providing an option of voluntary cover for high value bespoke projects whereby the maximum claim of $340,000 is irrelevant to the contract price and specification the project • Introduce a process for establishing the competency and credibility of “building experts” and ensuring independent and object opinions and conclusions within reports Consolidation of building regulation The establishment of a consolidated Building Act would underpin and enhance a single building regulatory authority. Furthermore, future regulatory reform would be greatly facilitated through the benefit of a consolidated Building Act, and provide a resource for greater regulatory knowledge and compliance.

For example, the planning reform process would have benefited substantially if those technical building provisions of the Environment Protection Authority resided in a consolidated

Building Act, and therefore the primary focus of planning reform could be confined to reforming strategic planning.

Master Builders recognises the process of developing a consolidated Building Act is substantial. However, we strongly submit that the process should commence sooner than later.

Master Builders Policy That the NSW Government commits to commencing a process of consolidating building and building related (technical) legislation into a consolidated Building Act. Extend licensing to building designers, architects and engineers Master Builders views the licensing system as fundamental to the competency of practitioners, quality outcomes and consumer confidence of the home building industry. It provides a mechanism for consumer protection by qualifying persons seeking work in the industry but, most importantly, it provides a compliance process to address unacceptable practises and poor performance.

Master Builders is concerned the key professional services of designers, architects and engineers, which are fundamental to the residential construction process, continue to reside outside of the current licensing regulatory system. Consequently, there is little accountability in the delivery of design and specification services by these practitioners, which leads to a direct risk transfer to builders and certifiers.

There is no statutory obligation that those providing design, engineering and specification services are obliged to hold professional indemnity insurance coverage in respect of such services. Consequently, there occurs a substantial risk transfer to accredited certifiers, who are obligated under the Building Professionals Act to hold professional indemnity insurance. This risk transfer is in-turn impacting upon insurance underwriter’s willingness to provide cover to accredited certifiers.

Recent reforms to section 18F of the Home Building Act 1989 were supported by the MBA, and provide a defence for a licensee for breach of statutory warranty where the licensee has acted on advice provided by a building professional engaged by the client or consumer. However, there is little protection or recourse for the consumer in

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respect of adverse or poor professional advice because as mentioned above, the providers of professional services reside outside of the Act. A default to National Consumer Law does not provide the same wide-ranging protection offered by the Home Building Act, especially in relation to repeated poor performance.

Master Builders is acutely aware the Building Designers Association and Institute of Engineers Australia have been seeking mandatory accreditation for their practitioners. Therefore, practitioner representatives who seek out regulation somewhat defeats the argument of imposing an unnecessary regulatory burden, when the industry itself foresees the need for regulation of professional services through a form of licensing or accreditation.

In making a case for government intervention may be difficult particularly when seeking to compile a history of complaints in respect of professional services, which are not easily identifiable due to being recorded amongst other consumer or trader complaints.

However, anecdotally it is common knowledge that complaints are common concerning inadequate residential design and specification, and architectural designs not fulfilling the design brief, in particular, within the client’s budget brief. Consequently, builders are reluctantly positioned as de facto designers and specifiers in order to fill gaps in design detail or amend designs and specifications, in order to satisfy the client’s budget.

Furthermore, it is illogical to those with an understanding of the construction process that licensing should start well up in the construction hierarchy with builders and trades, and does not begin at the fundamental and critical process of architectural design, specification and engineering.

Master Builders Policy Master Builders advocates the inclusion of architects, designers and engineers into the licensing system under the Home Building Act 1989.

Aligning of liability periods In NSW significant inconsistency exists across separate pieces of building and planning legislation, concerning the statutory liability period for building work. This inconsistency causes confusion, lack of certainty and most importantly goes against best practice principles in the development of regulation.

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The Home Building Act 1989 (Section 18E) provides that a licensee shall, subject to Statutory Warranties. Section 18(b) provide for a warranty period of six years for structural or major defects and two years for non-structural work.

The Environmental Planning and Assessment Act 1979 (EP&A Act), section 109ZK provides that despite any other Act or law to the contrary, a building action may not be brought in relation to any building work more than 10 years after the date on which the occupation certificate is issued.

The extended liability period provided by section 109ZK provides in the shifting of liability, or initiating action onto accredited certifiers, predominately due to the certifiers’ tenuous positon “as the last person standing”, and their obligation as a condition of accreditation to retain professional indemnity insurance cover. Removal of proportionate and several liability provisions have compounded the problem because the risk or action cannot be dispersed to those parties, which have a direct contribution or cause of liability.

Master Builders Policy Master Builders advocates that there should be uniform liability period for building work.

The six-year period provided in Section 103B of The Home Building Act 1989 should be uniformly applied to building work in NSW. NSW Civil and Administrative Tribunal (NCAT) orders to be stayed where outstanding monies unrelated to the order withheld.

Payments unreasonably withheld from residential builders are a significant issue for the industry and commonly occur in the latter stages of the project. This creates problems of cash flow, leading to insolvency and home warranty claims.

This issue has been continually ignored and in so doing reflects a common industry view that the regulatory regime is unapologetically biased towards the consumer. Many consumers today are well educated in pursuing building matters, with the assistance of building consultants readily offering advocacy services, and aided with the availability of the free Consumer Advice and Advocacy Service.

The creation of the NSW Building Construction Industry Security of Payment Act 1999 (SoPA) was launched by the State Government as a means to achieve, “swift and fair settlement of any payment dispute as a vital part of the State

Government’s reform agenda for the NSW construction industry”.

The NSW SoPA specifically excluded homeowners or owner-occupiers from the SoPA Act. Many other jurisdictions have modelled their security of payment legislation on NSW. However, Tasmania and Western Australia have gone further and recognised the need to include homeowners in their legislation.

The primary jurisdiction for residential building disputes in NSW is the Consumer and Commercial Division of the NSW Civil and Administrative Tribunal (NCAT). NCAT can make orders against builders to rectify or complete work. Such orders can also be converted to money orders. There is no provision to require the NCAT to order the payment or setting aside of monies owed to the builder, which are either unrelated to the dispute, or of a value which is not proportionate to the work in dispute or order.

Furthermore, there is no mechanism to ascertain if outstanding amounts duly owed are indeed available for payment.

Master Builders Policy Master Builders advocates that provision be made for the NCAT to be required to set aside monies owed and/or outstanding under a home building contract, and be subject to release once the NCAT orders have been complied with.

Measuring the cost impact on housing affordability The Sydney median house price currently sits at $715,000 (as at January 2015), confirming the Emerald City as one of the most unaffordable places to own a home. It is recognised that housing activity in NSW is increasing and growth is predicted to be sustained. However, there remains a substantial gap between supply and demand.

Key factors leading to worsening housing affordability have been consistently articulated by industry and, amongst other things, the impost of levies, taxes and charges is a core issue –together with direct and indirect costs, resulting from regulatory and government reform at both a state and local government level.

There appears to be neither a requirement nor a mechanism for government, and its various departments and agencies to measure, and report the cost impact on housing affordability resulting from government decisions and reforms. Consequently, the resulting cost

impact on housing affordability in reality is unknown and therefore there is no response to contain, remove or offset such costs. Even where regulatory reform is the subject of a Regulatory Impact Statement (RIS), resulting costs to housing are not reconciled to measure the impact on housing affordability.

The requirement to measure and report such cost will provide an improved measure of housing affordability and, importantly, should provide greater sensitivity to the cost impact on housing affordability.

Master Builders Policy Master Builders advocates for the establishment of a reporting structure for government, requiring the reporting of any charge or cost likely to impact on housing affordability to a central authority.

Dedicated cabinet minister The NSW building and construction industry contributes over $25 billion to the NSW economy and is a major job creator, with the sector employing over 300,000 people. The building and construction sector is integral to the NSW Government’s infrastructure renewal program.

Master Builders calls for a dedicated minister in cabinet and departmental agency to work with industry to drive new and modern industry policies and programs, which will attract private sector investments due to the focus and efficiencies that such a dedicated approach can deliver.

Master Builder Policy Master Builders calls for a senior minister in cabinet with a dedicated agency to be responsible for the building and construction industry in NSW. Education and training Master Builders’ survey of industry clearly reveals that the building and construction industry has an aging work force.

By the end of this decade some 80,000 tradespeople will leave the industry due to retirement. The main feeder to replenish licensed builder numbers is through the apprenticeship system which, at the current rate, will only be able to replace half of these retiring tradespeople.

Industry studies indicate that over the next five to six years the amount of construction work to be undertaken in NSW is substantial in all

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sectors of the industry. The industry, as whole, needs to embrace the training of young people through apprenticeships and traineeships, so that we have the necessary to skills to meet this demand.

In order to meet the demand of the future skills needs of the industry, Master Builders recommends the NSW Government introduce the requirement of a specific ratio of apprentices to tradespersons on all State Government-funded projects.

The ratio should be incorporated into the NSW Code of Practice for the building and construction industry and tender documentation.

Master Builder Policy Master Builders advocates the NSW Government introduce the requirement of a specific ratio of apprentices to tradesperson on all State Government-funded projects. The ratio should be incorporated into the NSW Code of Practice for the building and construction industry, and tender documentation.

Workers compensation – non specific work incident injuries The cost of claims borne by employers of employees for nonspecific work incidents, for example, loss of hearing and bad backs is extremely high. In many instances, these nonspecific incident injuries can greatly impact on a company’s ability to continue trading.

Master Builder Policy Master Builders advocates that all non-specific work incident injuries be treated as an industry injury, and funded through an industry claim pool established for such injuries.

Workers compensation – deemed worker The cost and time burden of business regulation has been the subject of inquiry at both federal and state levels. Governments universally concede that overregulation or inefficient regulation adds unnecessary business costs.

Industry surveys have consistently rated workers compensation as a major issue confronting building businesses. The definition of a deemed worker continues to be a major issue, particularly for the residential building sector, which is heavily reliant upon small contracting entities – often single operators – undertaking specialised trade work.

Master Builders believes simply adopting the common law definition does not deliver the desired clarity or certainty.

Master Builder Policy Master Builders seeks the ambiguity surrounding the definition of employee versus contractor be clarified through legislation.

Workers compensation – apprentices / trainees The cost and exposure of workers compensation to employers training apprentices is a major barrier to engaging apprentices. Master Builders’ survey clearly identified that builders would rather forego training apprentices than confront the inherent risk under workers compensation, and occupational health and safety legislation.

Master Builder Policy Master Builders advocates that in order to give added incentive to employers to engage young people in apprenticeships and traineeships, the workers compensation premium and risk associated with the cost of any claim for injuries sustained, should not be borne by the employer, regardless of the size of the business for the duration of the apprenticeship.

Payroll tax – apprentices Many in industry see the application of payroll tax as a direct disincentive to employing people, particularly apprentices.

Master Builder Policy Master Builders advocates that in order to give added incentive to employers to engage young people in apprenticeships, there should be no requirement on the part of employers to pay payroll tax for apprentices during the apprenticeship.

Workplace relations With a changing approach to workplace relations at a national level, the commercial sector of the building and construction industry in NSW believes an industry specific regulatory framework should be established to ensure a strong and disciplined approach to the rule of law. Such a framework will ensure that responsible behaviour of industry parties continues to be encouraged.

Master Builders advocates the establishment of a well-resourced building and construction industry specific agency in NSW. This industry specific regulatory agency would also need to be equipped with sufficient statutory powers and penalty provisions to act as a meaningful, ongoing deterrent against coercive behaviour and unlawful conduct.

Further, Master Builders advocates that the NSW Code of Practice and Industrial Relations

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Management Guidelines should be revised and strengthened, so the State Government is better able to enforce acceptable standards of behaviour across its projects, as a major client to the building and construction industry.

Master Builder Policy Master Builders advocates for the establishment of a well-resourced specific building and construction industry agency in NSW, to act as a deterrent against coercive behaviour and unlawful conduct. Master Builders advocates that the NSW Code of Practice and industrial relations guidelines should be revised and strengthened, so acceptable standards of behaviour are achieved and maintained on projects throughout NSW. Work health safety Right of entry by union officials seeking to gain access to building sites for health and safety purposes is regularly abused.

Master Builder Policy The Work Health and Safety Act 2011 (NSW) should be amended in the following terms: Right of entry permit holders should be required to provide 24-hours’ notice to attend the workplace to investigate health and safety matters. Amend Section 28 of the Work Health and Safety Regulation 2011 to require a right of entry permit holder to provide a written report to the regulator and company within 14 days, setting out the actions and relevant outcomes taken by the permit holder.

Cross border construction NSW is in a unique position with state borders with four jurisdictions, namely Queensland, Australian Capital Territory, Victoria and South Australia.

Contractors who conduct work in cross-border regions continue to face a myriad of variances in legislative and technical procedures when working in a number of cross-border regions.

This “red tape” often leads to delays in projects commencing which, in turn, can often cause cost increases for all involved. Examples of difference include Home Warranty Insurance, licencing requirements both in the commercial and residential sectors and continuing professional development to name a few.

Master Builder Policy Master Builders recommends that a detailed study of the various cross border jurisdictions be undertaken to identify and remove impediments to timely construction.

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WORK HEALTH AND SAFETY

MASTER BUILDERS AND SAFE WORK AUSTRALIA CONSULT ON RESEARCH PRIORITIES

NEWSBRIEF

One of Safe Work Australia’s functions is to conduct and publish research relating to occupational health and safety, and workers’ compensation in order to inform the development or evaluation of policies in relation to those matters. Research priorities are agreed annually by the Safe Work Australia members. The research and evaluation plan focuses primarily on evaluating the objectives of work health and safety (WHS) harmonisation including the costs of compliance for businesses, efficiencies for governments resulting from harmonisation and businesses’ perceptions of, and activities undertaken, to meet their WHS obligations.

The focus this year is on exposures to carcinogens, asthmagens, psychosocial hazards and musculoskeletal disorders.

The research focus is strongly influenced by priority industries, disorders and action areas specified in the Australian Work Health and Safety Strategy 2012-2022, as well as issues identified in the national workers’ compensation and fatality statistics.

WORKPLACE RELATIONS

PRODUCTIVITY COMMISSION RELEASES ISSUES PAPERS ON WR INQUIRY On 22 January 2015, the Productivity Commission released five issues papers relating to its public inquiry into the performance of the Australian workplace relations framework. The issues papers are intended to canvas fundamental questions about Australia’s workplace system. Some unions have raised issues merely asking these questions puts workers entitlements under threat. In reality, the commission has asked all Australians to give their views about the best system for the future.

The Australian Government asked the commission to undertake the wide-ranging inquiry into Australia’s workplace relations system in late December 2014, with a report date of November 2015.

FWBC FLAGS GREATER EMPHASIS ON CODE COMPLIANCE In an address to the National industrial Relations Advisory Committee on 29 January 2015, Nigel Hadgkiss, director of the Fair Work Building and Construction Agency, said that in 2015 contractors’ compliance with the Building Code 2013 would be a high priority. Master Builders has separately written to the Department of Employment highlighting that greater use of the 2013 code to implement current government policy is an option that should be examined. The 2014 code, whilst issued in advance of its coming into effect, remains stalled in the Senate logjam of workplace relations Bills.

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ECONOMICS AND TAXATION do require this information to be provided when the written application form is filed.

The deputy president also rejected an argument by the employer that the ability to make an incomplete telephone application enables employees to avoid the 21-day time limit, saying “the applicant is required to commence the proceeding within the 21 day time limit. The rule does no more than permit this to be done in a quick, flexible and informal manner.” This conclusion seems to ignore the practical effect of the practice.

Master Builders will be pointing out this anomaly to the Productivity Commission.

LEGAL AND CONTRACTS COMMISSION PERMITS DE FACTO EXTENSIONS OF TIME IN UNFAIR DISMISSALS In a decision dated 6 January 2015 the Fair Work Commission has effectively given those lodging by telephone further time in which to make their case. Employees are not required to specify the grounds for their claim or the remedies they want when they file an unfair dismissal claim with the commission by telephone. The Fair Work Commission rules 2013, at rule nine, indicate that an unfair dismissal application may be made by telephone, after which the commission prepares a written application form for the applicant. The applicant then has a further 14 days to complete, sign and file the application form with the commission.

In the recent case, the employee was dismissed on 25 September 2014. The employee’s representative made a telephone application for an unfair dismissal remedy on 15 October, and then filed a completed application form on 21 October. The employer argued that the application was not valid and was out of time because the remedy sought by the employee, and the reasons why he said his dismissal was unfair, were not specified at the time the telephone application was made on 15 October.

Deputy president Gooley dismissed the employer’s arguments, noting that the commission rules do not require an applicant to provide any particular information when making an application by telephone, but

BUSINESS CONFIDENCE NEEDS A REBOOT According to the National Australia Bank’s (NAB) monthly survey, business confidence rose fractionally in December 2014, following four straight declines. The improvement was not enough to reverse the downward trend and still leaves business confidence well down from levels seen throughout late 2013 and most of 2014. In contrast, business conditions fell marginally but continue a trend improvement. In summarising the latest results, NAB said “the survey shows a patchwork economy with little-to-no momentum.”

ACCC ISSUES AN INVOICE EMAIL SCAM WARNING The ACCC is warning businesses to beware of an invoice email scam. It involves scammers pretending to be legitimate suppliers advising changes to payment arrangements. Scammers hack into vendor and/or supplier email accounts and obtain information such as customer lists, bank details and previous invoices. Your business then receives an email, supposedly from a vendor, requesting a wire transfer to a new or different bank account. The email may look to be from a genuine supplier and often copies a business’ logo and message format. It may also contain links to websites that are convincing fakes of the real company’s homepage or links to the real homepage itself. For tips on protection from scams visit the SCAMwatch website.

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LOWER INFLATION AS PETROL PRICES FALL A large decline in fuel prices led to a fall in the consumer price index (CPI) in the December quarter. The headline CPI rose by only 0.2 per cent in the quarter, for a 1.7 per cent annual result. Underlying CPI adjusts for one-off and volatile items, and this measure was higher than expected at 0.7 per cent over the quarter, resulting in annual underlying inflation of 2.3 per cent.

RBA’s messages pointing to predictability and stability on monetary policy will be unchanged as a result of this latest reading on inflation.

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ECONOMICS AND TAXATION

TRAINING

ENCOURAGING JOBS DATA Nationally, ABS estimates that total employment rose by 37,400 in December 2014. As BT Financial notes, after a similar rise in November (44,900), the result represents the best two-month gain in more than eight years. Employment has now risen by 214,000 (1.9 per cent) in the past year, compared with 1.3 per cent in the year to November and the trend series has risen by 1.4 per cent in the past year. The unemployment rate eased to 6.1 per cent from a revised 6.2 per cent in November (originally reported at 6.3 per cent).

Although the Reserve Bank will be encouraged by the latest jobs data, the drawn out nature of the transition from mining to non-mining investment looks like it will continue. Despite the latest positive jobs data, analysts still expect some further deterioration in the unemployment rate over 2015 due to the soft economy. Job losses in some sectors will keep a lid on total jobs growth despite solid prospects in other sectors such as building.

HIGHEST EVER APPROVALS POINT TO LOOMING HOUSING BOOM

INDUSTRY SKILLS FUND OPENS FOR BUSINESS

The latest data from the ABS shows Australia recorded annual dwelling approvals of more than 200,000 for the first time ever.

The building approval figures support Master Builders’ forecast of a looming residential building boom in 2015, and challenge preconceptions that the approvals growth cycle had peaked. The slight fall back in approvals for December 2014 of 3.3 per cent seasonally adjusted came after the spikes seen in October and November 2014 of 11.9 and 7.7 per cent respectively. The historic high is being driven by a boom in apartment building in Sydney and Melbourne that shows no immediate sign of abating.

A strengthening pipeline of work will boost builder confidence. This will drive much needed job creation and investment in both the industry and wider economy.

On 19 January 2015, the new Federal Assistant Minister for Education and Training Senator Simon Birmingham announced that the government’s new $476 million Industry Skills Fund was opened for funding applications. The fund will provide up to 200,000 training places and skills advice for businesses over the next four years, and is a key element of the government’s Industry Innovation and Competitiveness Agenda.

POSITIVE JOBS GROWTH FOR BUILDING AND CONSTRUCTION

Businesses in the building and construction industry are able to apply, but must clearly demonstrate in their applications how funding will be used to support business growth or take advantage of new market opportunities. Businesses seeking support to train workers will be required to make a contribution of between 25 and 75 per cent to the cost of training. The co-contribution rate depends on the number of employees, with smaller businesses receiving higher levels of support. Applications can be made at any time throughout the year.

RATES CUT A BOOST FOR BUILDERS Master Builders Australia recently welcomed the Reserve Bank of Australia’s (RBA) decision to cut official interest rates by one quarter of a percentage point, particularly in the light of waning confidence in the still fragile Australian economy. The rates cut should help reboot confidence and ensure the building, and construction industry can play a key role in rebalancing the economy.

The RBA’s decision will benefit the housing market even as residential builders enjoy a solid uplift in activity driven by pent-up demand. Commercial builders will particularly welcome the RBA’s move to lower rates as non-residential building continues to suffer from the effects of weak business investment.

Detailed industry employment data show positive employment growth for the nation’s third largest industry, building and construction.

Employment rose by 0.6 per cent, seasonally adjusted, in the November quarter. In original terms, the number employed in the building and construction industry rose to 1,056,800 with the 4.7 per cent growth recorded over the year driven by the upswing in residential building, offsetting the impact of jobs lost in engineering construction as the downturn in mining investment unfolds.

The government has announced that priority will be given to small and medium-sized businesses, including micro businesses, as well as to businesses looking to grow in the sectors in which Australia enjoys a competitive advantage, such as advanced manufacturing, food and agribusiness, medical technology, mining equipment, and oil, gas and energy resources.

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HOUSING fallen across all age groups, except those aged 65 years plus. The largest falls were seen in the 25 to 34 year age group (down from 55.5 per cent in 1981 to 34 per cent in 2011, a fall of 21.5 percentage points), and in the 35 to 44 year age group (down from 75.4 per cent to 60 per cent, a drop of 15.4 percentage points, over the same time frame).

Federal Parliament into foreign investment in Australian real estate. Under the new arrangements, the threshold for screening purchases by foreigners of agricultural land will drop from $252 million to $15 million, with the latter figure being based on cumulative values and include proposed purchases. Other elements include establishing a national register of foreign ownership of agricultural land, with the Australian Taxation Office performing a stocktake of such land holdings.

INDUSTRY CONFIDENCE JUMPS A recent survey from the ANZ Bank has found business confidence in the property sector eased slightly in the March Quarter of 2015. However sentiment for 2015, as a whole, remains positive

HOUSING AFFORDABILITY Australia is fast approaching a ‘housing affordability ceiling,’ according to a major international credit rating agency. Fitches described us as the third most expensive country in the world for affordability.

They attribute the high level of housing unaffordability to Australia’s almost 25 years of unbroken economic growth, stable employment and record low interest rates.

with expectations of improving levels of activity as the year unfolds. The survey also reported continued optimism for the outlook for the housing sector, reflecting expectations of elevated rates of auction sales, more moderate rates of growth in house prices and strong dwelling approvals. Business confidence in the property sector was strongest in New South Wales, Victoria and Queensland, with a strong result in Tasmania reflecting a sharp increase in expectations for the tourism property sector.

HOUSE PRICE OUTLOOK Consumer and industry expectations for house price growth in 2015 continue to weaken. A new survey of the residential property sector by the National Australia Bank has found house prices around the nation are, on average, expected to increase by just 1.5 per cent this year, down on previous forecasts (of 2.1 per cent growth). The best performing states are seen to be Victoria (where house prices, on average, are predicted to rise by 2.2 per cent), Queensland (up 2.1 per cent), and NSW (up 1.5 per cent).

MORTGAGE PAIN EASES Mortgage delinquency rates continue to ease, largely on the back of low and stable interest rates. A new report by Fitch’s found the highest incidence of mortgage delinquency in the nation were in the northern Melbourne suburb of Hume (with 1.67 per cent of mortgagees in arears), Central Coast of NSW (1.58 per cent), and in Caboolture and Ipswich, Queensland (1.49 per cent and 1.46 per cent, respectively). In contrast, the lowest incidences of mortgage delinquency were in northwest inner Brisbane, and lower northern and innerwest Sydney.

HOME OWNERSHIP A new study has found substantial falls in home ownership rates amongst younger Australians over the past three decades.

The analysis by the Australian Housing and Urban Research Institute (AHURI), a Federal Government-funded housing think tank, shows home ownership rates have

EVENTS

MASTER BUILDERS NATIONAL CONFERENCE Master Builders are excited to announce its biennial national conference will be heading to the Gold Coast in November 2015, in what is promised to be the industry event of the year.

Unlike many traditional industry conferences that have a program full of just technical sessions, the Building Australia conference stands out from the rest. The conference will focus on leadership and assist members to make informed decisions on continuing to grow their business, whilst developing and maintaining strong leadership attributes within their business ethics. High-profile speakers will examine the building industry outlook and topics relevant to today’s building and construction industry.

The conference program and registration includes partners and a social program to be launched in mid-May, along with a super early bird end-of-financial year special registration price. The Master Builders Excellence in Building Construction Awards will be presented as part of the national conference on the Saturday evening as the grand finale to an exciting conference on the Gold Coast. Organisers look forward to seeing you there!

For more information visit www.

FOREIGN INVESTMENT IN LAND TO DROP The Federal Government reecntly announced changes to the rules covering foreign investment in agricultural land. The new rules follow a recent report by the

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masterbuilders.com.au/Events/nationalconference

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regional roundup

HUNTER DIVISION Birubi Point Surf Life Saving Club

MASTER BUILDERS NATIONAL AWARD WINNER Congratulations to Hansen Yuncken on winning the MBA National Award for the Birubi Surf Life Saving Club in the category of National Public Building Under $5 million. The Birubi Surf Club, located at Anna Bay, is an impressive building that has adjoining public amenities and restaurant. The restaurant features polished concrete floors and acoustic timber panels while hardwearing durable finishes were used throughout the clubhouse. This is a great achievement for Hansen Yuncken.

MBA 2014 HUNTER DIVISION RACE DAY The MBA Hunter Division held a very successful Race Day at the Newcastle Jockey Club on Saturday, 6 December 2014 with over 170 people attending.

A great day was had by all, with fashions on the field, lucky door prizes and losing ticket draws proving very popular on the day! A big thank you to our sponsors on the day: MBA Insurance Services, Kone, NHS, Newcastle MBA Apprentices, Bass Floor Company Newcastle, Mitsubishi Electric and Hanson.

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Don’t forget the upcoming 2015 Master Builders Excellence in Building Awards Newcastle. Entries close 15 May 2015.

The gala night takes place on 4 September at Wests New Lambton.

Call Kerri Richards on (02) 4953 9400 for more information.

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OXLEY DIVISION 2014 RACE DAY HEATS UP FOR OXLEY DIVISION The Oxley division held their annual race day on 14 November 2014. It was very warm outside, so it was great to be in the airconditioned comfort of the Clydesdale room at the Port Macquarie Race Club.

The race day was sponsored by A W Edwards, BDM Constructions, Kennards Hire, One Steel, Petries Mitre 10, Stowe Australia and Tiles with Style. With an excellent turn out and plenty of food and refreshments, a lot of fun was had by both winners and losers.

Todd Hardie (far right), One Steel, congratulating the winner of the Class 1 and Maiden Plate

Luke Reeves, Paula Beauchamp & Crystal Beauchamp enjoying the day

Kyll Goodsell (right), Stowe Australia, congratulating the winner of the CG & E Maiden Handicap

Rochelle, Ashley & Melissa from BDM Constructions with Peter from the Port Macquarie Race Club

Kimbal Dunham (right), A W Edwards, congratulating the winner of the F & M Maiden Handicap

Peter Hollins (right), Tiles with Style, congratulating the winner of the Hastings Handicap

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ULLADULLA DIVISION RACING TO BRIGHTEN CHILDREN’S LIVES Back in 2013, the members of the Shoalhaven division won a 10 per cent share of a racehorse for 12 months through the Mollymook Race Club.

At a division meeting all present agreed that whatever winnings from the horse, named Chantilly Prince, would be donated to a local organisation called Yarana for Kids, which has a number of holiday homes for children suffering from cancer. It is a highlight in their lives to come and spend a free holiday on the South Coast, and they are pleased to be part of it.

While the horse only collected $410, it was handed over to Elaine Holloway, President of Yarana for Kids by Shoalhaven President Rob Bevear on 19 November 2014.

Office Christmas decorations

Our traditional Santa decoration

FESTIVE NEW YEAR FOR ULLADULLA As part of the festive season, MBA Ulladulla Office engaged the local Lions Club to place a Santa on the office roof, as many businesses do along the South Coast.

The office is always pleased to take part in this Christmas tradition, which is enjoyed by Members and their families.

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QUALITY WORKMANSHIP CELEBRATED AT 16TH ANNUAL AWARDS FOR BRICK AND BLOCKLAYING EXCELLENCE The Masonry Contractors Association of NSW & ACT (MCA) conducted its 16th Annual Awards for Brick and Blocklaying Excellence on Friday, 7 November 2014. Once again, the work of the 46 entries from both NSW and the ACT were submitted over seven categories.

The event was held at Dockside in Cockle Bay with 250 members, sponsors and guests in attendance. The Master of Ceremonies was Geoff Noble, CEO of the Australian Brick and Blocklaying Training Foundation.

Trent Ryan from Wollongong TAFE, Riley Craig from Newcastle TAFE and David Coleiro from Guildford TAFE were honoured as apprentices of the year. The association also presented Sam Spong, winner of the World Skills 2014 competition in Perth in September, with an achievement trophy. Sam will now compete in the international competition in Brazil for 2015.

Also recognised on the night were industry legends John Brady of Austral Bricks and John Wash of Austral Masonry for their 32 and 28 respective years of salesmanship in the industry.

Workmanship was once again of the highest quality, revealing innovation and architectural proficiency with a product that is clearly still relevant in today’s market despite being a staple for centuries. The quality of the work was of a high standard as judged by the teachers from the Brick and Blocklaying Department at Nirimba TAFE. After the awards were presented and the grins photographed, the attendees were treated to the hilarious observations of Sydney-based comedian Mick Meredith, who entertained the audience with his unique humour and song parodies. Then it was onto the dancing, with music by the Tim Pringle Duo. MCA would like to thank the ABBTF for platinum sponsorship, as well as all the sponsors throughout the year and especially for the evening that would not have been possible without their support.

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WINNERS

OVERALL WINNER 2014 UNIVERSITY OF NSW STUDENT RESIDENCE CONTRACTOR: Lamio Masonry BUILDER: Richard Crookes BRICK SUPPLIER: Austral Bricks ARCHITECT: Bates Smart

CATEGORY 1 – SINGLE DWELLING BRICKWORK CLOVELLY RESIDENCE CONTRACTOR: Heritage Masonry and Stone BUILDER: Destech Builders BRICK SUPPLIER: PGH Bricks ARCHITECT: Jahn Jabbour

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WINNERS

CATEGORY 2 – MEDIUM DENSITY BRICKWORK ALORA APARTMENTS CONTRACTOR: Lamio Masonry BUILDER: Hutchinson Builders BRICK SUPPLIER: Boral Bricks ARCHITECT: Turner & Associates

CATEGORY 2 – MEDIUM DENSITY BRICKWORK MERIT AWARD WINNER LING APARTMENTS CONTRACTOR: Optimum Brick & Blocklaying Pty Ltd BUILDER: Creative Building Services Pty Ltd BRICK SUPPLIER: Boral Bricks ARCHITECT: Colin Stewart Architects

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Split Face Masonry

Tasman Retaining Wall System

BAINES MASONRY manufactures a complete range of concrete masonry products including Retaining Wall Systems, Blocks and Pavers in a wide variety of styles and colours.

Our range of face finishes includes: Natural (Light Weight), Split Face, Smooth Face, Fence Stone, Honed and Polished Face and our new NatureStone (Sandstone Faced Blocks).

Email: info@bainesmasonry.com.au Phone: (02) 4631 1383

Baines Masonry services the Sydney Metropolitan, Blue Mountains, Southern Highlands, Illawarra and South Coast regions of New South Wales, as well as agents in other regions. For full details please visit our web site www.bainesmasonry.com.au.

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WINNERS

CATEGORY 3 – COMMERCIAL BRICKWORK UNIVERSITY OF NSW STUDENT RESIDENCE CONTRACTOR: Lamio Masonry BUILDER: Richard Crookes BRICK SUPPLIER: Austral Bricks ARCHITECT: Bates Smart

CATEGORY 3 – COMMERCIAL BRICKWORK MERIT AWARD WINNER OUR LADY OF THE SACRED HEART SCHOOL CONTRACTOR: Narellan Bricklaying BUILDER: Reitsma Construction BRICK SUPPLIER: Austral Bricks ARCHITECT: JDH Architects

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WINNERS

CATEGORY 4 – RESIDENTIAL BLOCKWORK WOOLOOWARE TOWN HOUSES CONTRACTOR: Red E Bricklaying BUILDER: JA Palumbo BLOCK SUPPLIER: Austral Masonry ARCHITECT: Cavarous Architects

CATEGORY 5 – COMMERCIAL BLOCKWORK SYDNEY ADVENTIST HOSPITAL CONTRACTOR: Brickmen Constructions Australia Pty Ltd BUILDER: Buildcorp BLOCK SUPPLIER: Austral Masonry

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WINNERS

CATEGORY 6 – ORNAMENTAL BRICKWORK BRIGIDINE COLLEGE ST IVES CONTRACTOR: Hyntor Pty Ltd BUILDER: Co-Wynn BRICK SUPPLIER: PGH Bricks ARCHITECT: Fulton Trotter Architects

CATEGORY 7 – ORNAMENTAL BLOCKWORK WINDSOR DOWNS RESIDENCE CONTRACTOR: Onshore Services BUILDER: Clayton Kennedy BLOCK SUPPLIER: Adbri Masonry

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women in construction

SERENA GUIDICE – YOUNG BUILDER OF THE YEAR In November 2014 Master Builders recognised the latest of a number of inspiring women excelling in the building and construction industry.

Serena Guidice from Geraldton in Western Australia became the first female National Young Builder of the Year. Serena was presented with her award by Federal Minister for Women Michaelia Cash, who, in her speech, acknowledged the unsung role of women in the industry, particularly in family businesses.

Serena is an outstanding role model for women in the building trade. Equally important is her role in managing the business, and she is not alone.

Serena comes from such a background. Her father established Geraldton Homes and Serena worked with him, choosing to pursue a career in a male-dominated industry.

In New South Wales, Victoria and Western Australia the talents of female apprentices were celebrated with awards for excellence.

When her father passed away the family firm faced a choice experienced by many family building firms in the past; either the son would take over or the business would close its doors.

But, in a move that displayed her great courage, Serena took on the running of the business, becoming the registered builder and taking over the reins of management. This won her the clear respect of her peers.

Inspiring as those achievements are, Serena has also taken on leadership roles in the building industry and she is the chair of her regional Master Builders Association in mid-west WA.

2014 saw Master Builders Associations around Australia giving recognition to the achievements of women in construction.

In the ACT a young woman working as a project manager for a tier-one builder won a Master Builders award recognising her skills.

In Queensland, the Master Builders Women in Construction Award was won by a woman who had worked her way up from an executive assistant role to gain building qualifications and is now employed as a project and site manager.

In Victoria, the Master Builders Builder of the Year was also a young woman.

Like Serena, they are inspirational examples of how young women can excel and forge rewarding careers in building and construction.

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MAJOR CHANGES TO HOME BUILDING LAWS On 15 January 2015, the first round of changes to NSW home building laws commenced, with changes to residential building contracts to commence on 1 March 2014. Several changes are the culmination of years of lobbying by Master Builders. The changes appear to have wide acceptance by industry. However, consumer lobbyist groups and lawyers have suggested that some changes, such as a new definition of a ‘major defect,’ in their interpretation go towards favouring developers by reducing the statutory warranty period for certain defects.

The package of reforms applies over 50 changes to the Home Building Act covering licensing, owner builders, home warranty insurance, and disputes, defects and statutory warranties.

Licensing The monetary threshold for when a licence is required to perform residential building work has been increased from $1000 to $5000, based on the market value of labour and materials. This change has been made with the intent to reduce red tape by excluding low monetary value work. (Note: For specialist trade work of plumbing and electrical work the threshold remains at zero and a licence is therefore required to perform this work – irrespective of the value.)

The requirement to hold a licence to perform standalone internal painting, and work related to the construction of tennis courts, ponds and water features has been removed. (Note: A licence for internal painting work will still be required where internal painting work is associated with other building work. For example, as part of a contract for the construction of a new residence or major renovation.)

The Home Building Act has been strengthened to deal with repeat offenders contracting without a licence, or not providing statutory

insurance by providing for a jail sentence.

Master Builders is aware of custodial sentences being imposed previously. However, this was done in relation to prosecutions under other legislation such as the Crimes Act. The new changes will now provide for a monetary penalty of $55,000 or 12 months in prison or both, where an individual has been convicted of a second and subsequent offence for unlicensed contracting or not having insurance under the Home Building Compensation Fund (previously referred to as home warranty insurance).

The 30-day grace period for the restoration of a licence has been removed. If a licensee has failed to renew their licence and NSW Fair Trading has determined that they are not eligible to have their licence restored, then they will not be able to continue contracting and doing work while appealing the decision.

Changes have been made to the scope of work of structural landscapers. Previously, the scope of work of structural landscapers was linked to whether development consent was required for the work. The new definition removes the reference to development consent and furthermore, extends the scope of work to allow structural landscapers to build decks.

The change also allows the head contracting of specialist work, such as electrical work and plumbing work in relation to the structural

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landscaping contract so long as the specialist work is subcontracted to those appropriately licensed for such specialist work.

Several changes have also been introduced to address the practice of “phoenixing,” where a company intentionally enters into insolvency to avoid unpaid debts and then re-emerges as a new company under a different name.

New notification requirements will require that licence holders must notify NSW Fair Trading when a licensee becomes bankrupt or insolvent. If the licence is held by a corporation, it must notify NSW Fair Trading if it is wound up or de-registered. If there is a failure to comply, executive liability offences can apply to the directors and those involved in managing the corporation. In addition, a fit and proper person test becomes mandatory, and refusing or cancelling a licence where an individual or a person involved in a home building entity has been the subject of an unreasonable number of complaints, cautions, penalty notices or insurance claims.

Owner Builders Master Builders has strongly lobbied successive governments over a number of years for tighter legislation covering owner builders including disclosure of owner builder work on the property title as occurs in Queensland and furthermore, a return to the original intent of owner builder permits, which was for persons working in the industry to build their own home. While the current changes don’t go that far, the current reforms are welcomed and should reduce pseudo developer activity under guise of owner-builder.

Under the changes, owner-builders will be required to name all owners or persons with an interest in the land to ensure those with such an interest in the land are unable to obtain additional permits for different properties for five years. It will also not be possible to obtain a permit for a dual occupancy, unless special circumstances exist.

Owner builders will be no longer required to obtain home warranty insurance if they are to sell their property within six years. Effectively, the government being the only provider of statutory insurance in NSW will no longer provide such insurance to owner-builders. The real impact of this change on future owner builders is that the change will also require vendors to include a conspicuous note on the contract of sale that there is no insurance on the property, which will go some way to identify to potential purchasers that the property was

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constructed under an owner-builder permit.

(Note: trade contractors working for an ownerbuilder will still be required to provide statutory insurance where the contract for labour and materials exceed $20,000.)

Owner-builders will now be required to hold a valid industry safety induction card when making application for an owner-builder permit.

This is the same qualification as required of professionals in the industry. Also included in the changes is an increase in the monetary threshold requiring the completion of the ownerbuilder course from $12,000 to $20,000. The threshold for when an owner builder permit is required has also increased from $5000 to $10,000 and where development consent for the project is required.

Home Warranty Insurance The statutory insurance scheme remains much the same. However, what may seem cosmetic is that the statutory insurance will no longer be called ‘home warranty insurance,’ rather ‘insurance under the home building compensation fund.’ The change in name is an attempt to draw away from the term ‘insurance’ as it is commonly known, as ‘home warranty insurance’ is unlike any other insurance product in the marketplace, other than certain similarities with workers compensation.

A public register of insurance certificates is to be established by the NSW Self Insurance Corporation (the government provider of statutory cover). This register will assist in countering fraud or falsification of insurance certificates and help consumers and approval authorities to check that certificates are genuine.

Subsequent purchasers will also know if there have been previous claims on the property.

The changes to the regulations will now exempt kitchens and other built-in cabinetry work from requiring compensation cover where such work is under a standalone contract.

Licensed contractors who do work on behalf of a retirement village operator or developer will also be exempt from holding insurance in relation to the work.

The ‘disappearance’ trigger for a claim has been clarified to mean that ‘a person cannot be found in Australia.’ The definition of ‘story’ and ‘rise in story’ is to be entirely consistent with the National Construction Code.

The definition of ‘commencement’, for the purpose of a non-completion claim, has been defined to mean ‘residential building work done

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on the land to which the contract relates’.

Other work such as site preparation work (not residential building work) will not be considered the commencement of work.

Disputes, defects and statutory warranties The statutory warranty period of two years for non-structural defects and six years for structural defects remain unchanged. However, the term ‘structural defect’ has been replaced with the term ‘major defect’ occurring in a ‘major element’ of the building. The term ‘major element’ has also been defined to mean a part of a building impacted in such a way to cause the building or part of the building to be uninhabitable, unable to be used for its intended purpose. It also covers the collapse, partial collapse or destruction of the building. (Note: a ‘major element’ also includes waterproofing, fire safety systems and loadbearing elements.)

This change above has been a cause for concern among consumer groups and their lawyer advocates in that serious defects will be deflected into the two-year warranty period, even though they would have been considered as serious structural defects under the previous definition. Master Builders objectively does not share this view and no doubt, in time, the changes will be tested in the courts.

The new changes also put more responsibility on consumers and bring a sensible balance to the Act – long sought by Master Builders.

Under the changes, consumers can no longer allow defects to linger and further deteriorate, and will be obligated to give written notice to the licensee within six months of becoming aware of a defect. Importantly, a consumer must not unreasonably prevent a licensee from accessing the property to assess or rectify a defect. Furthermore, the rectification of defective work is to be the preferred outcome of proceedings within a court or tribunal over monetary payment. The tribunal will now have greater flexibility in the orders made and can make an order, even if it is not the order sought by the applicant.

NSW Fair Trading inspectors will be able to issue staged rectification orders that specify the stages and the date for which each stage of the rectification is to be completed. In addition, inspectors will also be able to make an order for payment due under the contract.

This is seen as giving appropriate authority to address situations where builders have had money withheld against defects, however,

upon the rectification of suggested defects or completion of additional work, they still cannot get paid. Inspectors will have the capacity to stage the release of withheld amounts once a relevant stage of rectification is completed.

Currently a defence provision (s.18f) is provided in the Act for licensees against a claim of a breach of statutory warranty where the licensee is required to perform building work under the instructions of the client and which was contrary to the written advice of the licensee.

Under new changes the defence has been enhanced to include where a builder or trades person has reasonably relied upon the written instructions of a ‘professional’ practitioner engaged by the client before the work had commenced. The ‘professional’ may be an architect, engineer, a surveyor or someone with specialist or expert industry knowledge. Such a person must also be independent of the licensed builder or tradesperson.

The recent changes have ensured that subcontractors must also warrant their work in accordance with the statutory warranties. The head contractor will remain responsible to the consumer for statutory warranties covering all the work under the contract. However, the builder may separately pursue a subcontractor for breach of statutory warrant.

Contracts Changes relating to contracts commenced on 1st of March 2015.

performed or costs already incurred, including the builder’s margin. Such a claim will need to be supported by evidence such as receipts, invoices or other documents, which can support the claim and with payment intervals fixed by the contract or on an ‘as invoiced’ basis.

A termination clause will also be required in contracts covering work exceeding $20,000.

The maximum deposit that can be requested for contracts exceeding $20,000 has been increased to 10 per cent. The change means that irrespective of the value of the work, a 10 per cent deposit can be requested.

In conclusion, it needs to be clarified that the obligation on licenced builders and swimming pool builders to undertake mandatory continuing professional development (CPD) remains unchanged. A separate Bill, the Mutual Recognition (Automatic Licensed Occupation Recognition) Bill 2014 was introduced to Parliament last year, which provided for the removal of CPD. However, this part of the Bill was defeated. Master Builders is aware that there is a level of complacency in the industry in regard to CPD. Master Builders is regularly requested to provide support to licensees who have been requested by NSW Fair Trading to verify their declaration that they have fulfilled their CPD obligations.

Consistent with the change in the monetary threshold for residential building, from $1000 to $5000, ‘small works’ written contracts will be required for work with a market value over $5000. However, the change does not prevent ‘small works’ contracts being used for work under $5000. As a consequence, the threshold for more extensive ‘general’ contracts has been increased from $5000 to $20,000.

It will be mandatory for written contracts for work valued over $20,000 to include a progress payment schedule, and a progress payment must be ‘an authorised progress payment.’ A progress payment is an ‘authorised progress payment’ if: a) It is of a specified amount or specified percentage of the contract price that is payable following completion of the specified stage of the work. Such stages of the work will need to be described in clear and plain language. (b) It is a progress payment for labour and materials in respect of work already

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BUILDING ACTIVITY TO STRENGTHEN ON BACK OF BUILDERS’ CONFIDENCE Builders are more confident a recovery is becoming entrenched, resulting in increased optimism about future prospects, according to the latest research.

Master Builders Australia’s National Survey Of Building and Construction shows conditions need to broaden before the building industry can play a key role to underpin GDP, and jobs growth after the resources boom.

Investment plans are being upgraded in line with improved profitability and healthier work on builders’ books that is, in turn, linked to an upturn in display centre traffic and commercial enquiries flowing through to sales.

Business Conditions Improve

Employment Intentions Turn The Corner Builder intentions regarding employees and sub-contractors have also turned for the better.

The index rose above the neutral 50-mark to a level not seen since before the GFC.

Builders’ business conditions continued to improve in the December 2014 quarter.

The majority of respondents described their business activity as ‘good’ or ‘very good’ although the recovery needs to strengthen further for builders to enjoy similar conditions to those experienced between 2003 and 2007.

Business profitability rose again, recording the best result in nearly four years and the index has returned to the ‘satisfactory’ to ‘good’ range.

Builder Confidence Bounces Back

that builders are now likely to lift employment levels in the period ahead.

In the non-residential sector, the index measuring current conditions remained virtually unchanged at 54.3 in the December quarter, remaining above the ‘neutral’ level after the steady improvement shown over the previous period.

In the index measuring expectations for building industry activity recorded 59.5, up sharply on the 54.3 recorded in the previous period.

After steady improvement from a trough in mid-2012, the reading is now well above the neutral mark indicating that builders see significantly higher industry activity over the next six months.

Business Activity Trends Higher The index measuring builders’ current level of own business activity rose to 63.4 in the December quarter from 61.9 recorded in the September quarter.

The index measuring expectations about future activity dropped back, but at 59.8 the index remains in the ‘improving’ category.

For the residential sector, the index for current conditions rose to 61.3 with half of the respondents describing conditions as good, very good or excellent.

National Business Conditions Ease

After dropping to levels below that recorded during the global financial crisis, the index has trended higher over the past two years to levels – well above the ‘satisfactory’ 50 level.

Builder confidence bounced back in the quarter after a dip in the previous period – the best result for seven years. Confidence recovered to levels not seen since before the global financial crisis (GFC).

Builders revealed improved expectations regarding their own business conditions and future profits. Both elements of the index contributed to the lift in business confidence.

Optimism About Investment Jumps Intentions regarding investment in plant and equipment have improved markedly in recent quarters. The December quarter read well above-average for the 17 year survey, and has regained pre-GFC levels.

Business Conditions ‘Very Good’ Half the builders surveyed described their business conditions as ‘good’ to ‘very good’.

The index measuring builders’ views on their future business conditions bounced back in the December quarter, recording 65 – the best in six years.

The index is now well above the neutral 50mark, indicating that builders believe their business activity will improve solidly over the next six months.

The index rose to 56 from 50 in the previous quarter. The result is the best in seven years prior to the global financial crisis, and indicates

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In terms of where the residential sector is headed, the index fell back again in the December quarter, to 55.

Although remaining positive, expected conditions for residential building have declined significantly over the past year.

This is likely to indicate changing expectations for residential building by geographical area.

All of these indicators suggest better times ahead.

Builders can look forward to increasingly favourable business conditions on the road to recovery.

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HIRING INTENTIONS RISE WITH LOOMING HOUSING BOOM The latest national survey of building and construction shows more jobs are set to be created by the industry in 2015, as building activity continues to strengthen and confidence in the sector grows.

Master Builders Australia’s National Survey of Building and Construction shows employer hiring intentions rose in the December quarter 2014 to their highest level since before the Global Financial Crisis (GFC), as builders indicate their intentions to hire more staff and sub-contractors.

The industry is on track to provide more job opportunities for young people as the index measuring builders’ intentions to take on apprentices lifted in the December 2014 quarter to a seven-year high.

Confidence in the building and construction industry continues to grow, with the survey recording a sharp rise in expected building activity to the highest level in seven years. The survey indicates builders see significantly higher industry activity coming in the next six months, which is translating into increased confidence in their own business prospects. These prospects have been trending up over the past two years, and are now approaching pre-GFC levels.

The survey has good news for young people as the index measuring builders’ intentions to employ apprentices rose to its highest level in seven years and a third of respondents are planning to put on more apprentices in the next six months. It’s a clear and positive signal the building and construction industry is creating more jobs and career opportunities in one of the nation’s key growth industries.

The profitability of building firms rose to a record best result in nearly four years, and the benefits should flow through to the wider economy as the survey also recorded a marked improvement in builders’ intentions to invest in plant and equipment. However, while the survey reinforces Master Builders’ forecast strong growth for residential building in 2015, conditions in the commercial construction sector have some way to go before they could be described as healthy.

To ensure the increased demand for apprentices translates to the best outcomes for the industry and young people, Master Builders reinforces the need for new thinking by the government to enable builders and education providers to enhance pathways from school to apprenticeships.

Improvement in commercial construction is expected, but a return of business confidence in the sector is essential for a sustained upturn.

As the Federal Parliament is about to resume Master Builders, in its pre-budget submission, will ensure that business confidence is not undermined for a more pragmatic budget repair strategy.

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APPRENTICESHIP SERVICE HAS AN ALL-INCLUSIVE HOURLY RATE Karen Kellock, Master Builders Apprenticeship Services Manager explains why training a Master Builders apprentice is now even easier!

Master Builders Apprenticeship Service has made training an apprentice easier with the new all-inclusive hourly rate.

Why did we make this change? You need to look at the way we invoiced our training employers in the past to understand.

The old way of invoicing was a little complicated. We would invoice you for all the hours on site, not for annual leave or sick leave, and we would for TAFE, but not rostered days off until the apprentice took a rostered day off. It was a little confusing.

We stepped back and asked our training employers why they use the apprenticeship service and what needed improving. We even asked some builders who don’t use, the apprenticeship service.

We were told that the main advantage for a training employer when they use the Master Builders Apprenticeship Service is that it’s simple and easy, so they can get on with building.

Our cost and invoice structure was far from simple and easy!

We have made some changes The hourly rate covers all costs associated with training a Master Builders apprentice. This means that you will only be invoiced for the hours the apprentice is on site For example: A first year apprentice carpenter works 30 hours onsite and goes to TAFE for eight hours.

The training employer will be invoiced for 30 hours – 30 x hourly rate = invoice $$ A more complicated example follows for a first year apprentice carpenter: Worked onsite 16 hours Attended TAFE 8 hours Rostered day off 8 hours Annual leave 8 hours Total hours 40 hours Training employer invoiced 16 hours

The training employer is only invoiced for the hours the apprentice is on site.

Please note that an Australian apprenticeship is a 38-hour per week full time position. The apprentice must be at work, TAFE or approved leave for 38 hours each week. Asking the apprentice to stay home because there is no work that day is not permitted. If you don’t have enough work for your apprentice, please call Apprenticeship Services and discuss returning the apprentice.

Rostered days off and how we invoice them The old way of managing rostered days off (RDOs) was to accrue the hours worked by the apprentice, but not invoice the training employer at that time. When the apprentice took a RDO, the training employer would be invoiced.

There were a couple of issues with this way of managing RDOs: • When the apprentice was returned to Master Builders, or completed their apprenticeship, the training employer was invoiced for the total amount of RDO hours owing to the apprentice. In some cases this invoice was a large figure.

• Timing of receiving the invoice for accrued hours often did not align with the job they were working on when the hours were accrued. It’s a better business practice to have all related expenses finalised when the job is finished.

• Apprentices would want to take their accrued RDO hours when work was light, or over holiday periods such as Christmas/ Easter. This meant the training employer was invoiced when there was no work or they were taking a break.

• Accrued hours were often banked up, or were forgotten, surprising the training employer by their number and equivalent dollar value.

• RDO hours are paid to the apprentice at the rate of pay they are on when they take them, not when they earn them.

• If the placement ended unhappily for whatever reason, the RDO invoice was rarely received with pleasure.

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You can see why we needed to change the way this was done.

New all-inclusive hourly rate has huge advantages for all Master Builders training employers You know what each hour of work is costing you. There are no hidden expenses.

There are three major benefits to this: 1. You are only invoiced for the hours the apprentice is onsite.

2. You can accurately quote and invoice for the hours the apprentice spends on each job site. This is a huge advantage for training employers running a couple of jobs at the same time.

3. No RDO invoice when the apprentice completes or is returned to Master Builders.

Now it’s even easier to give back to your industry, and train the framework of our future with a Master Builders Apprentice.

For more information contact Master Builders Apprenticeship Services: Phone: (02) 8586 3533 Web: www.mbansw.asn.au KAREN KELLOCK Master Builders Apprenticeship Services Manager

apprenticeship 41

COMMENTARY: WHAT ARE YOUR SKILL LEVEL EXPECTATIONS FOR AN APPRENTICE?

I was back at work only one day after the Christmas break when a training employer called our office to say he doesn’t want the apprentice back on-site tomorrow.

My investigation revealed that the apprentice took a sick day, which appears to have annoyed the training employer and prompted him to claim that the apprentice made many mistakes and he doesn’t want him back. Prior to the sick day, the working relationship was great.

During the investigation, I read an email from the training employer with a list of the things the apprentice has done wrong. This included missing a screw here and there, or not cutting or painting something correctly and so on.

As the Apprenticeship Services Manager, I believe it’s important to investigate any claim of wrongdoing, perceived or otherwise.

At this point I have to ask, ‘How much training has the apprentice been given in the specific tasks? And what level of skill do I expect from an apprentice with less than four weeks, site experience?’

The definition of ‘an apprentice’ is: • A person who works for another in order to learn a trade • Someone who works for a skilled or qualified person in order to learn a trade for a recognised period of time • Any beginner, a learner, novice

A common theme to these definitions is that the apprentice is someone who is learning.

Ask yourself: Do I expect an apprentice, particularly a first year, to have the skill level of a tradesman?

This would be an unrealistic expectation that is sure to leave both the apprentice and the training employer unhappy to say the least.

Look at it this way, if a school student is slow to learn or doesn’t understand the concept the teacher is teaching, it is expected that the teacher use a different method of teaching. For example, they could show how to do it rather than just saying, to assist the student to learn.

Apprentices are no different to school students and, in most cases, only recently made the transition from putting on a school uniform everyday to putting on a nail bag.

It is the role and responsibility of the training employer to train the apprentice, and Master Builders Apprenticeship Service is here to assist you.

It’s important to remember that when you are training an apprentice that you take into account the way you are relaying the information to them. Although you were taught a certain way, that particular teaching method may not be suitable for this time or apprentice.

I completed my four-year apprenticeship many years ago to achieve my trade certificate, and I can attest to the varied and interesting methods of teaching and training that I received, some of which would not be within the bounds of current bullying legislation.

An apprentice won’t stay with a tradesperson who can’t teach, even if they are great at their trade. Likewise, a training employer won’t keep an apprentice who isn’t prepared to listen and learn. It’s a two-way system.

I don’t know anyone who would want to come to work to yell or be yelled at all day, or left alone to do the work with little or no instruction, guidance and support.

My advice is simple: If you need someone with the skill of a tradesman to do the job, then hire a tradesman.

If you want to teach and train the next generation of quality Master Builders, talk to us about training an apprentice.

KAREN KELLOCK Master Builders Apprenticeship Services Manager For further information about Master Builders Apprenticeship Services contact: Phone: (02) 8586 3533 Web: www.mbansw.asn.au

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cams

Left to right: Government projects & programs manager Omesh Jethwani and apprenticeship mentoring officer Jack Long

CAMS – THREE YEARS ON Government projects and programs manager Omesh Jethwani highlights the successful implementation of the CAMS program and its milestone achievements in the last three years.

In May 2012, the Commonwealth agreed to fund the Construction Apprenticeship Mentoring Scheme (CAMS).

CAMS is a comprehensive, nationally coordinated approach to supporting apprentices, and trainees in the building and construction industry. It integrated an online engagement strategy with access to one-on-one mentoring support, and an innovative approach to supporting ‘out-oftrade’ apprentices.

The primary objective of the project is to increase the apprenticeship completion rate to 62 per cent, per annum over the initial threeyear period. A secondary objective of the project is to increase significantly the number of employers who report apprentices are well-prepared for a career in the building and construction industry.

The CAMS project is a nationally coordinated approach to supporting apprentices in the building and construction industry, delivered

through Master Builders’ network of 33 offices around Australia including major regional centres.

What have we achieved?

• CAMS NSW team has trained 60 volunteer mentors (53 male mentors and seven female mentors) to work with industry

training managers, safety officers and apprenticeship officers.

• The mentors undertook an intense twoday training course around apprenticeships and traineeships, how to deal with Generation Y, suicide prevention and Aboriginal cultural awareness training and anti-bullying workshop.

• CAMS NSW has over a 90 per cent completion of the 273 apprentices and trainees, which were signed onto the program. These apprentices and trainees either have completed and gone onto become tradespeople, or have completed a full-year in the program. From now and to the end of June 2015, 36 mentees will continue to be mentored.

• Through the funding, CAMS NSW was able to assist ‘out-of-trade’ apprentices and trainees by upskilling them with training, and then help placing them back

apprentices and trainees. The mentors are from a diverse work background, ranging from construction managers, project managers, business owners,

into employment. CAMS NSW worked with Master Builders Association of NSW Apprenticeship Services, as well as the broader industry to successfully place 37

“Study anyone who’s great, and you’ll find that they apprenticed to a master, or several masters. Therefore, if you want to achieve greatness, renown and superlative success, you must apprentice to a master” – Robert Allen

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‘out-of-trade’ apprentices and trainees.

• As of February 2015, CAMS NSW has attended 81 career expos with over 28,000 trade flyers, career pathway flyers handed out to 1700 high schools for distribution to students, from years nine to 12.

• 25 careers trade flyers, career pathway flyer, a Jump Start career booklet, a business start up kit booklet and 15 factsheets were developed under the CAMS program.

• CAMS NSW has delivered PowerPoint presentations at 49 high schools, which have been attended by 580 non-VET and VET students from years nine to 12.

• Posters to promote careers in the building industry were distributed to over 200 high schools.

• CAMS NSW developed ALink NSW, an online resource (www.alinknsw.org.au) that aims to communicate opportunities to apprentices and trainees and particularly provide information on career pathways in the building and construction industry.

• On 20 February 2014 Master Builders NSW presented CAMS and ALINK programs at the Investing Of Women Program, at the NSW Council for Women’s Economic Opportunity, chaired by the Honourable Pru Goward, MP – Minister for Planning and Women.

• On 19 March 2014, Master Builders commenced a project co-branded with Franklyn Scholar to deliver the Apprentice to Business Owner (AtoB) program for 10 apprentices (Sydney metropolitan) who have completed their trade certificate.

Furthermore, a CAMS Mentor will provide 12 months of mentoring to students.

• On 11 April 2014, Master Builders NSW partnered with Glenwood High School to volunteer and mentor in the Handyman Project for 11 disengaged students from years nine and 10, who had expressed interest in an apprenticeship in construction.

The project was selected on its ability to complete work in a practical setting.

• On 17 July 2014, Master Builders NSW partnered with the Babana Aboriginal Men’s Group to support Alexandria Park Community School NAIDOC Celebrations.

Over 1000 students and adults attended the event to celebrate the occasion.

Master Builders NSW raised $300 along with $600 contributed from Babana to award four students (two from junior and two from senior) for their outstanding school performance.

• On 18 September 2014, Master Builders

NSW partnered with Yarn’n Aboriginal Employment Services and Hospitality Training Network (HTN) to support the Putland Education Training Unit (ETU) / Cobham Juvenile Justice Centre Careers Expo.

• As of February 2015, CAMS NSW has delivered 57 powerpoint presentations on CAMS and ALINK at several NSW TAFE sites to 1119 TAFE students in the residential, commercial and civil industry sectors. Some of the advice provided were information on CAMS program, benefits of mentoring, awards, wages, government incentives, suspension, payslips, bullying on site, training contract, apprenticeship terms and conditions, career pathway and mental and health topics.

• Approximately 2000 apprentices and trainees, who are prospective future members, have signed on to a free membership for the duration of their apprenticeship and traineeship. These apprentices and trainees have the luxury to shop online in the comfort of their own living room due to suppliers coming on board to offer discounted rates on tools, cars, insurance and much more.

• Furthermore ALink NSW also offers parents and careers advisers a one-stopshop website that provides all information in relation to the building trades, schoolbased apprenticeships and traineeships, pre-apprenticeship courses and career paths in the building industry.

• Master Builders NSW has partnered with Saint Yon Trade Training Centre, McCarthy Catholic College Trade Training Centre and Southern Cross Catholic Vocational College to provide mentoring to 37 school-based apprentices and to provide advice to future students on careers in the building industry.

What people are saying about accountability In November 2013, industry liaison manager Nicola Pegum from the Saint Yon Trade Training Centre commented, “These partnership collaborative activities have resulted in the following organisational and community benefits: • Increased enrolments in construction • Increased enrolments in students wishing to complete a school-based apprenticeship in Certificate III in carpentry • Better completion rates with students being supported with industry mentors • Guidance with work and life issues and better links to industry • Quality career advice and networking opportunities within the industry The Saint Yon Trade Training Centre is proud to be an industry partner of the NSW Master Builders Association.”

Industry liaison officer Patrick Carroll from McCarthy Catholic College Trade Training Centre said the following in November 2013, “We are endeavouring to continue the relationship that we have forged with the NSW Master Builders Association and the CAMS program, as it has benefitted the apprentices in the following ways: • Gives students access to people with real industry experience • Guidance with work and life issues • Better links to the industry • Quality career advices and networking opportunities within the industry • Guidance with industrial issues and their industry award” CAMS is implemented by Master Builders around Australia with funding assistance from the Department Of Industry, Innovation, Science, Research and Tertiary Education Under The Apprenticeship Mentoring Program.

Several articles were published in Master Builder Magazine: • Skill Shortages in the NSW Building Industry • Becoming a Great Mentor • The Importance of Workplace Mentors • Hiring a Female Apprentice • Female Tradies in the Building Industry • The Handyman Project • CAMS NSW Co-Host an Apprenticeship Evening • Working with Aboriginal People and Communities • CAMS NSW Supports the Cohbam Juvenile Justice Centre Career Expo

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training

TRAINING – A WEALTH OF OPPORTUNITIES Expanding your business is a decision many don’t take lightly. Deciding what you should think about before growing your business, and what strategic approach you will take, are all important factors. Another important decision to ask yourself is: Will new training and upskilling assist my business to grow and how can it do this?

Operating a small business can be difficult if you don’t plan to expand and you just maintain the same services and customers from year to year. Many contractors upskill themselves and their employees to expand the services they offer, thereby increasing their customer base.

grow your small business into the kitchen bathroom laundry renovation (KBLR) sector by skilling yourself in asbestos removal, waterproofing, painting and other KBLR skill sets. Not only could this increase your skills and knowledge, but also give you the qualifications needed to gain licenses in NSW for these specialist areas. Your business could move into another area without having the need to engage additional contractors to undertake specialist work, hence increasing your profit margin.

The benefits of training can trickle down to every aspect of your business

Training and development is perhaps one of the most important parts of your business. By increasing not only your skills and qualifications but also your employees, you can open your business to more and new opportunities by attracting new customers.

For example, if you are a trade contractor such as a carpenter, you could easily

By improving the range and level of skills in your business by training and upskilling staff, you will be giving staff the training opportunities

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they need to increase their loyalty to your business and their productivity, as well as your profitability.

The benefits of training can trickle down to every aspect of your business, from improving staff moral to boosting profits.

Master Builders has a large variety of training courses on offer to industry, from short courses in safety, asbestos awareness, asbestos removal to national trade qualifications, certificate IV and diploma qualifications and high-risk licence units.

For more information on how your business can benefit from the training they offer: Phone: (02) 8586 3555 Website: www.mbansw.asn.au/training

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BUILDING AUSTRALIA Master Builders Australia 125 Year Anniversary Conference Save the date, Jupiters, Gold Coast,12-14 November 2015

You’re invited to join Master Builders from around Australia to be part of the most exciting and rewarding building Industry Event in 2015! The Master Builders biennial National Conference will be held 12-14 November 2015 at Jupiters Hotel Convention Centre Broadbeach Gold Coast, a fully appointed one stop conference venue with over 540 superbly appointed accommodation rooms with easy access to beaches, restaurants, shopping centres, Theme Parks and attractions.

Wilhelm Harnisch Chief Executive Officer

®

The National Conference ‘Building Australia’ will deliver a comprehensive program of high profile speakers that will examine the building industry outlook and topics relevant to today’s building and construction industry. The conference includes a fully incorporated partners program, an exhibition and an exciting social program.

Register your interest online at www.masterbuilders.com.au

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Aboriginal affairs

ABORIGINAL PARTICIPATION IN CONSTRUCTION The NSW Government Aboriginal Participation in Construction Policy is intended to support the State Government Plan for Aboriginal Affairs. The Policy will enable businesses in the construction sector to contribute to activities identified under the Opportunity, Choice, Healing, Responsibility and Empowerment (OCHRE) Industry-Based Agreements and Opportunity Hubs.

New participation guidelines will commence in NSW on 1 May 2015.

The implementation of these new guidelines is a key deliverable under the Aboriginal Economic Development Framework, an OCHRE-connected initiative. The framework seeks to further empower Aboriginal people, communities and businesses to drive stronger economic outcomes.

NSW Government procurement provides a significant opportunity to increase Aboriginal skills and economic participation. The NSW Government’s Aboriginal Participation in Construction Policy is intended to support the State Government Plan for Aboriginal Affairs, OCHRE. It aims to support strong Aboriginal communities in which Aboriginal people are able to actively influence and fully participate in social, economic and cultural life. It recognises the business community has a key role to play in broadening opportunities for Aboriginal people, and that the NSW Government can use its relationship with business to deliver positive social outcomes.

This Policy will contribute to the following Policy aims of OCHRE: • increasing school attendance and retention.

• increasing student transitions from school employment or tertiary education.

• increasing the number of Aboriginal people employed.

• increasing the number of Aboriginal-owned businesses.

Economically empowered Aboriginal workers and businesses also support the broader NSW Economic Development Framework, strengthening the global competiveness of New South Wales.

Commencement This Policy commences on 1 May 2015, replacing the 2007 Aboriginal Participation in Construction Guidelines. It will apply to all relevant NSW Government construction contracts signed on or after the commencement date.

As members would be aware, the MBA signed an Industry Based Agreement in April 2014 with the NSW Government to promote education, training and enterprise opportunities for Aboriginal people in the building and construction industry.

Who does the Policy apply to?

The Policy applies to all State Government departments, statutory authorities, trusts and other government entities (collectively referred to as ‘agencies’).

State-owned corporations are encouraged to adopt aspects of the Policy that are consistent with their corporate intent.

Which construction projects are covered by the Policy?

This Policy applies to all government construction projects that meet the criteria set out below. Construction includes building maintenance and civil engineering. Construction related support activities, such as financial, advisory, architectural and professional services may also be included where considered appropriate to achieve Policy goals.

Construction projects that are being undertaken jointly with the private sector are included in this Policy, as are projects undertaken on land not owned by the government — or where the build asset will be owned by a non-government entity.

There are three categories of projects that are impacted by this Policy: Category one – Projects nominated by an agency that are primarily directed to one or more Aboriginal communities. This includes projects where an Aboriginal community is the sole beneficiary, a key user group or predominant stakeholder.

Category two – All other construction projects where the estimated value is over $10 million.

Category three – All other construction projects where the estimated value is over $1 million.

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Left to right: Brian Seidler MBA NSW executive director, Cameron Lyons apprentice plumber, Minister Dominello, Richard Pitt (construction worker) & Minister Constance

Applying the Policy The targeted project spend for Aboriginal participation is a percentage of the total estimated value of the contract. Individual agencies are responsible for setting the targeted project spend on each project, in line with the Policy goals.

This Policy sets out a long-term goal and short-term incremental goals (below).

The NSW Procurement Board (the Board) may vary these targets at any time, and will adjust the mandatory minimum target percentage upwards towards the long-term goal as they are progressively achieved. Agencies may also set the target using other criteria, such as employment and training levels, provided they are broadly commensurate in value.

including where agencies or contractors have contractual obligations arising from the participation or funding of a project by the Commonwealth Government.

The Procurement Board may also exempt specific projects or classes of projects,

Allocating targeted project spend The targeted project spend may be allocated to both directly and indirectly related expenditure, provided it meets the spending allocation requirements outlined below.

Expenses may be incurred from the date of the contract award and up to 12 months after the anticipated completion of the project.

1 May 2015

1 July 2016

Long term

Category 1

Indicative minimum target of 1.5 per cent

Mandatory minimum target of 1.5 per cent

Mandatory minimum target of 5 per cent

Category 2

Indicative minimum target of 1.5 per cent

Mandatory minimum target of 1.5 per cent

Mandatory minimum target of 4 per cent

Category 3

Indicative minimum target of 1.5 per cent

Mandatory minimum target of 1.5 per cent

Mandatory minimum target of 3 per cent

Agencies may at any time set targets for a project or class of projects at a higher rate than prescribed.

A contractor engaged on two or more projects must provide Aboriginal Participation Plans that have separately funded programs. While a single program may be funded more than once, inclusion of a duplicate spending activity on multiple projects is not permitted.

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Expenditure directly related to the project Selected contractors must allocate at least 50 per cent of the targeted project spend to employment and education activities directly related to the project’s planning, design or delivery.

Direct employment and education activities include: a) The employee-related expenses of Aboriginal people engaged in the planning, design and delivery of the project by the contractor. b) Expenses related to the engagement of Aboriginal people in the planning, design and delivery of the project through a recognised group training or labour hire company. c) Expenses related to the procurement of goods or services from recognised Aboriginal businesses by the contractor specifically to consult and engage with Aboriginal communities in the area where the project will be delivered. d) Education expenses paid for by the contractor on behalf of Aboriginal people engaged in the planning, design and delivery of the project. e) Expenses related to the engagement of Aboriginal Land Councils, the NSW Indigenous Chamber of Commerce, Supply Nation or other Aboriginal community representative bodies nominated by the NSW Procurement Board.

“NSW Government Aboriginal Participation in Construction Policy is intended to support the State Government Plan for Aboriginal Affairs”

Other expenditure eligible to be included in the target project spend Selected contractors may allocate up to 50 per cent of the targeted project spend to expenses

that are indirectly related to the project, but that contribute to the education and employment goals outlined in OCHRE. These goals are: • increasing school attendance and retention.

• increasing student transitions from school employment or tertiary education.

• increasing the number of Aboriginal people employed.

• increasing the number of Aboriginal owned businesses.

• otherwise meet the Policy aims of OCHRE including its Industry Based Agreements program and Opportunity Hubs.

Eligible indirect expenses are defined as: • Expenses related to Aboriginal cultural awareness and mentoring programs operated for or on behalf of the contractor for the benefit of employees (whether or not engaged on the project), and for subcontractors and their employees engaged on the project.

• Expenses related to the procurement of goods or services from recognised Aboriginal businesses by the contractor in the planning, design and delivery of the project.

Programs and bodies established for the purpose of delivering OCHRE’s goals in the construction industry may seek approval from the Board. Spending on these approved programs and bodies may also be included as eligible indirect expenses by the contractor.

It should be noted that the MBA made application to the State Government to establish a Foundation to accept monies for the purpose of satisfying this part of the guidelines, and was successful in it’s application.

Aboriginal Participation Plan Selected contractors for all Category 1 and Category 2 projects are required to publish their Aboriginal Participation Plans within 60 days of the contract being awarded.

A Participation Report must also be published when the project reaches 90 per cent completion which explains how the Participation Plan has been implemented.

Participation Plans and Reports must be published in the format prescribed by the Board. They will published on a specific site determined by the Board and must remain on the site for at least two years from the conclusion of the project.

Category 3 projects are exempt from these requirements until 1 July 2016. As a matter of

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good practice, contractors and agencies are encouraged to submit participation plans for publication up until this time.

ROLES AND RESPONSIBILITIES NSW Procurement Board The Procurement Board is responsible for the administration, monitoring and reporting of this Policy. This includes: • Maintaining the website and publishing the Aboriginal Participation Plans and Progress Reports provided by contractors for Category one and two projects.

• Publishing a list of approved charitable bodies, trusts or other not-for-profit organisations, which contractors may support as part of their obligations under this Policy.

• Publishing a yearly review of this Policy as part of its annual report.

• Dealing with complaints about the application of this Policy via its established complaints handling procedures.

The Procurement Board may also issue a Direction requiring agencies to use standard form contract clauses on projects subject to this Policy.

The Procurement Board may delegate any of these functions to the Construction Leadership Group or the chair of the Procurement Board.

Agency responsibilities Agencies are responsible for ensuring contractors are made aware of their obligations under this Policy at the time of tender.

From 1 July 2016, agencies are obliged to consider the demonstrated capacity of contractors to meet obligations under this Policy when assessing value for money.

Contractor responsibilities Contractors are responsible for providing their Aboriginal Participation Plans and progress reports to the relevant agency and, for category one and two projects, to the NSW Procurement Board for publication (nswbuy@finance.nsw.gov.au).

Contractors are required to have the participation report certified by the contractor’s Chief Financial Officer, Chief Executive Officer, or another person authorised by the Procurement Board to issue statements on behalf of the contractor.

workplace health & safety 49

A NEW SAFETY STANDARD FOR THE BUILDING AND CONSTRUCTION INDUSTRY MBA senior safety officer David Solomon discusses the introduction of a new international standard for safety management systems, ISO45001.

The ISO rules to be followed to achieve such outcomes are quite complicated. A few examples follow:

ISO/PC283 (ISO45001) members, L-R, chairman David Smith, Australian delegate David Solomon, convener Kristian Glaesel & secretary Charles Corrie at the gala dinner.

As the nominated representative from Master Builders representing Standards Australia, I was an Australian delegate to the third meeting of International Standards Organisation (ISO) project committee meeting held at Port of Spain Trinidad Tobago from 19 to 24 January 2015. A total of 60 delegates from 22 countries participated in the review of a committee draft, the precursor to the International Standard ISO45001, which will become the new safety standard for safety management systems in Australia.

delegate had their own agenda, their own interpretation of the draft standard in their own language, compounded by strict ISO language and rules.

The main purpose of the meeting was to review 2886 comments regarding standards received from all over the world. The committee draft had been open for public comment for a period of three months. The international delegation reviewed conflicting comments during the opening two-day plenary. The delegation was charged with the responsibility to review and remove, where appropriate, these comments over the next four days. The ISO process for reviewing and removing comments is known as "dispositioning" in ISO terminology.

The terms not in the original scope included representatives and contractor. In the last day of plenary the ISO issued a draft resolution for the term "representative". This was to be used instead of worker representative, which has numerous negative implications for smaller family businesses trying to implement an OHS management system. However, adopting the project committee's decision makes it easier for associations like the MBA across the world to represent their members against unauthorised site entry, with or without lawyers or union delegates. By nine votes to eight with four abstaining a ballot decided in favour of accepting the new term. This obviated any future requirement for the regulator to intervene under these terms.

Delegates were broken up into six task groups.

I was selected for the task group looking after "definitions".

Some of the more important definition outcomes agreed to were: Worker, workplace, interested parties, legal and other requirements, incident, corrective action and risk. The last meant not OH&S risk, which was not defined.

• Rule 1: Definition must be used.

• Rule 2: Common usage. Do not define terms that are in common use. Only terms relevant to the scope of the standard shall be defined.

• Rule 3: Consistency. If the concept has already been defined in another authoritative source (e.g. another ISO standard), and the definition has another meaning, it should be first considered in the form that other standards have used it.

• Rule 4: Uniqueness: Avoid the use of a single term for multiple concepts and the use of multiple terms for the same concept.

• Rule 5: Substitution. The form of a definition shall be such that it can replace the term in context.

• Rule 6: Avoid circular definitions. Do not use the term being defined in the definition.

ISO notes are to provide additional information that further explains the term. Notes in definitions are normative. Terms are to be listed by concept; terms are to be listed alphabetically, as the order is lost in translation.

The next stage in the development of the international standard is to release the committee draft for a period of two months later in 2015 for public comment before the project committee reconvenes to review the comments prior to a further meeting and publication in 2016.

I hope this provides MBA members with an insight into how an international standard is developed over a three-year period, requiring the skills of an eclectic mix of standards experts from around the globe.

TG5 consisted of delegates from Australia, Norway, Japan, USA, International Labour Organisation (ILO), and Trinidad. Adding to the International language barrier was that each

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workplace health & safety

EFFECTIVE MANAGEMENT OF WORKPLACE INJURIES IN 2015 Workplace injuries and illnesses are a major cost to businesses. In 2010/2011 there were 28,179 workers compensation injuries in NSW. The cost of these injuries to the community, employers and workers was $872 million. The construction industry continues to have one of the highest numbers of injuries and cost for labour and related workers. The most common injuries continue to be sprains and strains, which make up 59 per cent of all claims according to WorkCover NSW. A two-prong strategy needs to be implemented by businesses, firstly to prevent the injuries and secondly early intervention and return-to-work coordination of work injuries.

Cost Building companies with low injury costs have a significantly competitive advantage. Any workplace injury inflicts varying levels of pain and suffering on workers, but also imposes a significant financial burden on workers, businesses and external stakeholders. There is not only an increase in the employer’s premium, the employer in turn has to commit invaluable resources. The cost of workplace injuries include: • Lost wages • medical treatment • compensation for pain and suffering • legal fees • fines and penalties • lost productivity • poor morale — and expenditures associated with retraining • recruitment • hazard mitigation to prevent recurrence.

The table below shows the continued upward costs of workers’ compensations costs in Australia.

Common causes of high premiums: • The employer was unaware the worker had aggravated his injury, and was no longer employed by the organisation.

• Dismissal of a worker when unfit for work and within six months of injuring themselves.

• Not providing suitable duties – when the insurer is paying wages, it has the greatest effect on the experience estimate and forms the majority of claims costs.

• Ineffective rehabilitation of the worker and no return to work strategy.

• Breakdown in the employer/employee relationship.

The employer’s management of the claim is essential. Unfortunately, if employers have the attitude that the problem will ‘just go away’ or ‘it won’t cost me’, they could be unexpectedly shocked by a higher premium. Trying to rectify the incurred cost of the claim is not possible.

Employers must ensure they have a process to review their claims and the cost of each claim throughout the year. Early intervention at commencement of becoming aware of the incident is critical. Mend use these primary strategies as part of their early intervention model: 1. Identify a suitable medical practice or medical practitioner who will provide prompt and effective initial medical treatment 2. Three-point contact with the worker, doctor and site immediately, and formulate an injury management strategy 3. Lodge a notification with the insurer Lodging a claim within five days of becoming aware of the incident will save a company the excess, which is based on the first week of the workers average wages.

Strategies There continues to be resounding emphasis on the provision of suitable duties for the benefit of the employer and worker. The statistics continue to indicate the earlier a worker returns to work, the better the outcome. This also means a reduction in the individual claims cost and effect on the premium calculations.

Figure 1 Economic cost of work-related injury and illness in Australia (Issues in the Measurement and Reporting of Work Health and Safety Performance: A Review, Safe Work Australia, Safety Institute of Australia and CPA Australia Nov 2013)

The financial impact on the employer’s workers compensation premium for claims is calculated by using the employer’s experience component (based on the cost of the claim to date, potential costs and industry rating). Employers (within their industry classification) who have lower claims and manage their claims well (i.e. lower costs) will not be charged as much as those who have expensive claims and/or numerous workers compensation incidents. Effective injury management can reduce the cost of a claim by over 50 per cent.

Research has shown the following chance of ever returning to work, if the person is off work for: 20 days – 70 per cent.

45 days – 50 per cent.

70 days – 35 per cent.

(Johnson D, Fry T. Factors Affecting Return to Work after Injury: A study for the Victorian WorkCover Authority. Melbourne: Melbourne Institute of Applied Economic and Social Research; 2002)

Diagnosis is not a predictor to RTW (OECD, 2007), and it has been shown the workers’ job satisfaction can be a greater predictor of a RTW outcome.

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and

e

at

workplace health & safety 51

The cost of paying an external professional to provided assistance and rehabilitation on a claim is minimal, making up only 3 per cent of the total cost of most claims. However, the effect of rehabilitation on the overall claims cost can be high. If a worker can be placed on suitable duties, even on reduced hours, whilst undertaking retraining it will have a profound effect on reducing the claims cost. In the building and construction industry it can be difficult to identify and provide suitable duties, an experienced health professional can assist in the identification and negotiation of a worker’s RTW and suitable duties.

Reducing your claims – immediate strategies • Appoint a return to work coordinator within your organisation. If you have a basic tariff of over $50,000 this is a legal obligation.

The return to work coordinator (RTWC) must be accredited. Mend conducts this training in association with the MBA. Alternatively, appoint an external RTWC if you do not have the resources. Recent studies on the return on investment have shown a saving of $3 for every $1 spent. Mend is able to act as your RTWC. • Claims reviews are essential. This is where the insurer provides you with all the current claims relating to your workers compensation premium. They outline costs associated with the claim and its status. It provides you with a forum to review strategies being implemented to manage the claims, ensure they are effective and costs are contained.

• Identify and locate suitable duties for injured workers. Formulate a suitable duties register.

• Monitor your incidents at work, claims submitted and time lost. This provides an overall view of the organisation’s current systems and effectiveness. It allows the prevention of injuries rather than just a reaction to an accident.

• By managing your workers compensation claims, you can minimise the effect on premium calculations.

If you need assistance in the implementation of the outlined strategies or management of your claims, contact Mend.

Phone: (02) 9660 8611 Email: Fiona.curdie-evans@mendservices.com.au Website: www.mendservices.com.au

FIONA CURDIE-EVANS Managing director

Get the right advice when you need it most When an incident occurs our expert legal team is ready to assist you with all your safety, environmental, workplace and contract management needs.

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Master Builders Cranes- Nov 2014.indd 1

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workplace health & safety

WORK HEALTH SAFETY TRAINING COMING TO MASTER BUILDERS Master Builders are expanding the range of training on offer to industry. The first new qualifications to be offered to members are the WHS Certificate IV (BSB41412) and WHS Diploma (BSB51312). Both qualifications supersede and replace previous OHS certificate IV and diploma qualifications. In addition, both qualifications reflect and meet the requirements of the WHS Act 2011.

learning (RPL) and credit transfer (CT) for work experience, skills and previous qualifications, which will shorten the duration of this training if you are assessed in conjunction with RPL or CT.

Certificate IV WHS reflects the role of workers who apply a broad knowledge base, and well-developed skills in a wide variety of context and could include coordinators, advisors, team leaders and project supervisors.

Additional WHS training includes high-risk license units of competency as per the current regulations.

Diploma WHS reflects the role of workers who apply substantial experience and well-developed skills in a wide range of WHS contexts, and could also include coordinators, advisors, team leaders and project supervisors.

Master Builders can assist participants to complete both qualifications together, or you can elect to complete stand-alone qualifications.

Combined WHS qualifications will attract a further member discount.

Training seminars will be delivered through evening sessions of four hours per week for six months for participants who have no previous qualifications or work experience. As these training qualifications are nationally recognised, we are able to provide recognition of prior

Participants who already hold the previous qualifications can receive RPL to achieve the new WHS qualifications.

Master Builders can deliver: • Basic, intermediate and advanced scaffold training.

• Traffic control and traffic management training.

• Working near overhead power lines training.

• Locate, identify and protect underground services training.

• Asbestos removal and supervision of asbestos removal training.

• Demolition (restricted and unrestricted training).

• First aid training.

Various other new training courses as requested by industry are also on offer.

To find out more about training or place your expression of interest, please visit our website or call (02) 8586 3555.

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

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54

insurance

NEGOTIATING BUILDERS’ WARRANTY FRAMEWORK The Builders Warranty framework in NSW remains a moving target with recent changes in name and process, along with increased vigour around certain aspects of the assessment process.

In December 2014, The Office of Fair Trading (OFT) announced important changes to all domestic builders in NSW.

payments, and how much you have invoiced where money hasn’t been received, against works completed per contract.

More specifically from 15 January 2015 these changes were: 1. The fund will be known as the Home Building Compensation Fund (HBCF).

2. All contracts solely for built-in furniture and cabinets no longer require warranty cover.

3. A public register of certificates and claims.

Most builders use the standard progress payments stages of deposit, base, frame, lockup, fixing or final payment taking into account the percentage complete at each stage.

However, the value of woks completed at each stage will vary from contract to contract.

Regarding the second point on built-in furniture and cabinets, there has been a small amount of confusion in regard to contracts no longer requiring warranty cover. It is important to note that the contract for built-in furniture needs to be for the built-in furniture work only under a contract.

Clause 58 of the Home Building Regulation 2014 provides that a holder of a contractor licence who does, or enters into a contract to do, residential building work that consists only of built-in furniture work, and any incidental electrical wiring work involved in the installation of lighting as part of built-in furniture, is exempt from the requirements of part six of the Act in respect of that work if the work is done under a separate contract, and not as part of a contract for other residential building work that requires such insurance.

In this clause built-in furniture work means the making and installation of furniture that is made to measure and fixed to a dwelling (such as built-in cupboards, bench tops, wardrobes, entertainment units and the like), and which may be made offsite and installed as a complete unit.

In recent times builders have also faced the challenge of increased rigor around their work in progress (WIP).

HBCF’s assessment process seeks to justify the WIP value placed on your balance sheet.

This is a function of understanding exactly how much you have received through progress

This can have a major influence in your assessment outcome.

If you have any questions in relation to recent changes to in the new HBCF, how WIP is calculated or any other insurance matter, please do not hesitate to contact Master Builders.

Phone: (02) 8586 3555 Email: nswwarranty@mbais.com.au

The process AASB 111 Construction Contracts WIP calculation is an accurate process in accounting for WIP and is the process that is adopted by the HWIF. Contract 1

Contract 2

Total Contract Value

$300,000

$300,000

Stage of Works Billed

Lock-up (65 per cent)

Lock-up (65 per cent)

Value of Works Received

$90,000 (to frame stage)

$90,000 (to Frame Stage)

Value of Works Billed

$105,000 (lock-up stage only)

$105,000 (Lock-up Stage only)

Total Received & Billed

$195,000

$195,000

Percentage Complete

80 per cent

50 per cent

Value Complete

$240,000

$150,000

Work in Progress

+$45,000 (work in progress)

-$45,000 (unearned income)

Contract 1 has completed works ($240,000) in excess of the money received ($195,000) and is therefore taken as WIP $45,000 and is considered a current asset.

Contract 2 has received money ($195,000) in excess or the works completed ($150,000) and is therefore taken as unearned income ($45,000) and is considered a current liability.

If you are not completing the required WIP document in the correct format; completing it incorrectly; or not supplying the document at all, the WIP noted on your balance sheet may be discounted anywhere from the documented value, to no value at all, or even to a negative figure (unearned income).

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technology 55

INTRODUCTION TO PLUSSPEC The use of Building Information Modelling (BIM) is inescapable as the industry progresses.

BIM in the construction industry is clearly on the rise and will soon become the standard.

In the past, BIM has been in the realm of big builders and architects but the introduction of PlusSpec, a new building, design, planning and estimating tool, brings BIM to the masses.

PlusSpec brings together the power of computer aided drafting (CAD), estimation, 3D Modelling, 2D planning and BIM into one easy-to-use package. Created by local Box Hill builder Andrew Dwight, the program is offered

by Rubysketch, an Australian owned and operated business.

It has all the functionality of competitors, including 3D drawing, virtual design construction (VDC), 2D drafting through the use of layout, as well as a new feature of a

complete material takeoff for anything you draw. This means that every part of your drawing can be quantified and estimated in real time, so that you will have a clear 3D model (as well as all your 2D plans) to show and discuss with your clients, builders and suppliers.

They will see exactly what is to be built and make amendments before work commences in the 3D world (saving both time and money of costly construction changes). Once your drawing is complete, so is your quote.

PlusSpec gives you a complete material takeoff broken down in each section of building/ trades with a simple click of a button.

The models are fully parametric, meaning they can be changed as you go. This means no more starting from scratch if you require major changes. Features are dynamic, which allows

windows and doors to open on the model.

These features alone will save businesses both time and money, meaning a great return on investment almost instantly.

PlusSpec also plugs straight into Sketchup, meaning it is so easy to use that anyone can pick up the software, watch the online tutorials and be drawing house plans within a matter of hours. It is compatible with Google Maps as well, allowing professionals to produce designs on a client’s property with ease.

3D models produced in BIM tend to eliminate design faults, leading to better facility management. PlusSpec just makes it easier for smaller businesses to take part and improve their services, reduce their overheads and communicate more effectively with clients.

For more information visit www.plusspec.com

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technology

WHICH SMART PHONE DO I CHOOSE? If you're about to purchase a smartphone, and wondering what you should buy, this may help you make a decision.

by John O’Neill of Builders App

The two you've probably heard of are the Android and iPhone.

comes up on your screen, where your settings are and how you use the phone features.

However, there are a number of others not as commonly used, including: • BlackBerry OS • Nokia's Symbian • Hewlett-Packard’s WebOS • Microsoft’s Windows Phone OS

Your friends and others in our industry may be telling you to buy an Android or to buy an iPhone. You may be confused as to what each of these terms means or even whether the iPhone is an Android phone.

Whilst there are a number of different types and manufacturers of phones, a major difference between them is their operating systems.

The operating system acts as the internal software and runs the phone. It will dictate what

The short answer is no, the iPhone is not an Android phone nor is an Android an iPhone.

They are both types of smartphones. They connect to the internet and can run apps and programs. However, they are incompatible with each other.

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

Think of iPhone and Android as being two separate brands, like using a cordless Makita drill and a cordless Metabo drill. Both drills perform a similar task but the battery from the Makita drill cannot be used to run the Metabo drill.

The same is true for the iPhone and Android.

There are four keys areas where the iPhone and Android phones differ.

1. Operating System One of the most important things that set these types of smartphones apart is the operating system that they run. The

technology 57

operating system, or the shortened term OS, is the foundational software that makes the phone work.

The iPhone runs the iOS created by Apple and run on Apple computers, while Android phones run the Android OS developed by Google. While all OS do basically the same things, the iPhone and Android OS aren’t the same and are not compatible. iOS only runs on Apple devices, while the Android OS runs on Android phones and tablets.

Android settings are more malleable, giving users more creativity in how they use their phone. It is possible to make large changes to the iOS on an iPhone but this will void any support offered by Apple on the device.

make Android phones. Any company that makes an agreement with Google can make an Android phone, but no company except Apple makes the iPhone. Think of Android as being like Windows, made by a single company but sold on devices from a large number of companies.

Android is designed to be more interoperable and available on more devices. The downside of this is that its security is weaker.

The amount of viruses and malware targeting iPhone is so small it is almost immeasurable, whereas 97 per cent of the malware targeting smartphones attacks Android.

3. Apps Both iPhone and Android run apps, but are not compatible with each other. The same app may be available for both kinds of phone. For example, the Bureau of Meteorology - which predicts the weather - produce two apps for download. One works on the iPhone and the other works on Android. Both apps produce the same information. However, there is different software for each phone.

Apple’s tight control of its platform and some smart OS design decisions make iPhone the most secure mobile platform.

5. Deciding which to buy As you can see, whilst they are similar

App developers must deal with stricter 2. Manufacturers Another major difference between the two is what companies make them. The iPhone is only made by Apple, whilst Android isn't tied to a single manufacturer. Instead, many different companies including Motorola, HTC, Samsung, and Google

4. Security As smartphones become more and more central to our lives, how secure they are is an increasingly important issue. On this front, the two smartphone platforms are very different.

regulations through the App Store offered

by Apple to sell to the consumer. There are more apps available for Android than for the iPhone though, according to some reports, some of the apps in Google's store (Google Play) are malware, misleading or low quality.

the iPhone and Android are not the same thing. When the time comes to buy a new smartphone, you'll need to decide which phone suits you. It’s worth taking a look at what apps you might consider using, which OS you find easier to navigate and what suits your budget.

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58

industrial relations

ACCESSORIAL LIABILITY UNDER THE FAIR WORK ACT Master Builders director of construction Peter Glover discusses how businesses can reduce the risk of their contracting practices exposing them to claims of being an accessory to a breach of the Fair Work Act (FW Act).

Many businesses in the building and construction industry use contracting as a legitimate and integral part of their business model.

However, in doing so, members need to be aware of where their obligations begin and end, along with steps that can be taken to avoid the risk of being found liable as an accessory to a breach of federal workplace laws by your subcontractors.

Some businesses take the view that once a contract is in place between a principal contractor and a subcontractor, the responsibility for the subcontractor’s employees’ compliance with federal workplace laws rests solely with the subcontractor. While it is correct that the employer is responsible for any breaches of workplace laws, members need to bear in mind that the Fair Work (FW) Act also provides a mechanism where someone other than the employer can also be considered an accessory to any contraventions of workplace laws. As such, they can also be held liable for that contravention and be subject to penalties and compensation.

Under the FW Act, the definition of being ‘involved in a contravention’ is very broad and includes aiding, abetting, counselling or procuring the contravention, inducing the contravention, being knowingly concerned in or party to the contravention, or conspiring with others to bring about the contravention.

An example would be entering into a subcontracting arrangement with a labour hire company at an hourly rate that does not meet the minimum modern award rate of pay.

Another example would be a head contractor who engages a lorry owner-driver to remove excavated material from a building site at an hourly rate below the minimum provided in the transport industry contract determination.

If this was in the knowledge of the principal contractor or they required this lower rate of pay to be paid by the subcontractor, this would mean the principal contractor was involved in the contravention with the subcontractor.

Although this mechanism has existed in various forms in workplace relations legislation for many years (e.g. Section 127 of the NSW

Industrial Relations Act 1996), it is increasingly being used by the FW Ombudsman (FWO) to hold principal contractors to account for their procurement decisions. FWO has been very public about holding businesses and individuals accountable for practices it considers undermines, or have the potential to undermine, compliance with federal workplace laws. It has flagged that it intends to increasingly go up and down the supply chain to scrutinise these contracting arrangements.

This is distinct from simply prosecuting a director or manager of a business who has breached federal workplace laws on the basis the director was the controlling mind and will of the company.

So how can members protect themselves against this risk?

While it is impossible to completely insulate your business from the risk of being held liable as an accessory when engaging in procurement or contracting out services, members should bear in mind the following tips: • Take all reasonable steps to ensure that your own employees who are involved in the procurement or contracting out of services, along with potential subcontractors, have knowledge of applicable workplace laws and that they comply with these laws. Master Builders can assist with this.

• Depending on the scale of the procurement or contracting arrangement,

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provide your own employees and subcontractors with training and education in workplace compliance. Master Builders can assist with this.

• In arrangements with contractors, require the ability to have the subcontractor audited for compliance, and require a warranty or undertaking that the subcontractor and its subcontractors are compliant in all aspects.

Master Builders can assist with this.

• Limit the liability of the subcontractor to subcontract the work without your knowledge. If you are content to allow the subcontractor to subcontract the work, require that the subcontractor meet the same strict compliance with workplace laws that you require from your contractor.

• In the event that you receive a complaint from employees of your subcontractor or their subcontractor concerning compliance with workplace laws, fully investigate the issue until satisfied the complaint has been dealt with appropriately.

• Provide for termination of any contractual arrangements in the event that breaches of workplace laws are established, and act swiftly on your ability to terminate.

• Make sure any payment to a subcontractor complies with other laws such as security of payment laws in the building and construction industry.

Should members have any further enquiries regarding this matter, please do not hesitate to contact the association’s industrial relations department, Sydney office on (02) 8586 3555 or Newcastle office on (02) 4953 9400.

industrial relations 59

NEW PROVISIONS FOR EMPLOYEE INCENTIVE SCHEMES Master Builders director of construction Peter Glover discusses changes to employee share schemes.

Members are advised that following an extensive consultation period, the Australian Securities and Investment Commission (ASIC) has introduced two new class orders for employee incentive schemes.

The two new class orders (Class Order 14/1000 employee incentive schemes: Listed bodies and class order 14/1001 employee incentive schemes: unlisted bodies) and an updated regulatory guide 49 have widened the scope of the exemptions available to companies seeking to implement an employee share scheme.

Members are also advised that, provided its policy objectives for employee incentives schemes are met, ASIC can still also grant case-by-case exemptions where an employee’s scheme does not fall within the class order relief or existing Corporations Act exemptions.

As a consequence, the changes are good news for prospective participants, as they should reduce the regulatory burden on companies, and therefore make it easier for employers to develop and implement employee incentive schemes.

Employers are now afforded a greater degree of flexibility in structuring employee incentive schemes, and are able to offer a wider range of financial products to a wider range of participants. The update has also helped to fully clarify areas of uncertainty under the previous regime, and removed unnecessary administrative burdens for employers.

However, ASIC’s exemptions are not unconditional, and it has imposed new conditions to support the interests of participants who are

considering taking part in such a scheme. For example, companies will have certain disclosure obligations, as ASIC believes a certain minimum level of information and disclosure is warranted.

Expansion of exemptions in respect of unlisted bodies has also been made limited. This is because ASIC considers that participants in unlisted bodies are less likely to be able to assess the value of securities being offered by reference to a reliable market price, and it notes that unlisted bodies are subject to a lower level of supervision.

Members are also advised that in October 2014 the Federal Government released its National Industry Investment and Competitiveness Agenda. The agenda included a proposal to reform the tax treatment of employee share schemes to bolster entrepreneurship in Australia, and support innovative start-up companies. These changes will complement ASIC’s updated policy in relation to share incentive schemes by helping to minimise the costs and complexity for companies of implementing and maintaining such schemes.

It is proposed the changes to the tax treatment of employee share schemes introduced by the former Labor government in 2009 be unwound, benefiting all employee option holders, particularly holders in selected start-up companies.

The Federal Government’s agenda proposes that the following changes to the taxation of employee share schemes take effect from 1 July 2015: • For all companies, the taxing point of options will occur at the time of exercise (e.g. when the employee receives the shares).

• The extension of the maximum time for tax deferral from seven years from acquisition of interests to 15 years.

• An update of the ‘safe harbour’ valuation tables used to value unlisted rights to ensure they reflect current market conditions.

• Employees of certain start-up companies will benefit from a concession allowing them to receive options or shares at a small discount, and have taxation on the options deferred until the shares acquired through the exercise of the options are sold or the small discount applied to the shares is exempt from tax at the date of grant.

This is provided that: • Options or shares are held for at least three years.

• The company is unlisted, has a turnover of not more than $50m and has been incorporated for less than 10 years.

The Federal Government has also confirmed that the following provisions will be retained: • Integrity provisions introduced in 2009.

• The $1000 up-front tax concession for employees who earn less than $180,000 per year.

The Treasury Department is currently undertaking a consultation period with industry and ASIC to ensure the legislation meets the objectives stated by the Federal Government.

The Australian Taxation Office will also work with industry to develop and approve standardised documentation with the aim of streamlining the process of implementing and maintaining employee share schemes.

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finance

NEW FINANCIAL ADVICE SERVICES FOR MEMBERS AND THEIR FAMILIES Better understand your savings, retirement goals and personal priorities with a free financial consultation.

MBA Financial Services is expanding its member services, giving you the opportunity to meet with a qualified financial adviser for a free and no-obligation initial consultation.

Through a joint arrangement with the Australian Financial Services Licensee, Lifespan Financial Planning, MBA Financial Services offers members and their families access to a select team of specialist financial planners.

The financial adviser will assess your current financial position, answer any questions you have and discuss the next step to create a tailored plan to help you and your family reach your financial and retirement goals sooner.

Receive simple or comprehensive advice on business or personal financial matters, superannuation and retirement planning, personal insurance, investments or accounting.

You will also have access to a local professional adviser, who can ensure you have all the right information to enable you to make the best decisions about you and your family’s financial future.

The adviser will clearly document your options and the advice provided, so you can make a well-informed decision about how you'll get there.

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

Lifespan Financial Planners have provided financial advice to Australians for over two decades as part of one of Australia’s largest non-institutional financial planning businesses.

To find out more and get in touch with your local financial planning professional, contact MBA Financial Services: Phone: 1300 760 366 Website: www.mbansw.asn.au/Services/ Financial-Services

membership 61

2015 MAKING THE MOST OF YOUR MASTER BUILDERS MEMBERSHIP

By Graham McGuiggan, Member Services Manager, MBA Over the next year, I will provide some valuable tips in each publication to help make your membership subscription work harder for you.

They will cover cost savings, free services and member-only discounts.

Free legal assistance As I work my way around the state, I am surprised at the number of members who are unaware that our in-house legal service provides them with not only building and construction advice, but also general legal advice, like debt recovery. Our lawyers can provide advice for the best methodology to recover a debt, which can include writing letters of demand.

The most common area that triggers debt recovery is not documenting variations on both residential and commercial contracts.

All variations need to be in writing and essential for protection of both parties, especially the builder and is a requirement under legislation.

Our legal team produce our MBA contracts, so they understand and can assist you with all your contract needs, which can also include contract selection. The appropriate contract for your job can make a world of difference if issues arise down the track.

Free insurance health check Master Builders Association Insurance Services (MBAIS) can provide members with a free insurance health check on any policies that you may have in place, regardless of whether they’ve been arranged through another insurance broker.

They can check the policies you have and provide advice around the coverage you need, giving you peace of mind that your business is adequately insured.

MBAIS also provides advice and quotations for general insurance products and specialty products including home warranty, contract works & liability, professional indemnity and workers compensation.

To check all member benefits, services and member only discounts contact your local Master Builders office: Phone: (02) 8586 3515 Website: www.mbansw.asn.au/membership

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feature / bushfire protection

By Joseph Keller, FPA Australia communications manager and Chris Wyborn FPA Australia engagement & education manager Australians have a fundamental connection to the bush. Much of our cultural folklore surrounds Australia’s beautiful bushland areas. It is of little surprise then that many of us share a desire to build our dream home in such an area. In addition, the increasing urban sprawl of most major Australian cities is leading to increased residential construction in areas that have a high chance of bushfire.

The frequency and severity of bushfires in Australia as result of climate change is increasing, this was clearly evident by the tragic events of Black Saturday on 7 February 2009 in Victoria as well as many significant bushfire events since, including the Blue Mountains fires in 2013. These events have led to a number of revisions in building codes and standards in relation to bushfire construction in Australia, in order to reduce the potential impact of these events in the future.

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feature / bushfire protection 63

All of this leads to significant need for rigorous and safe bushfire construction measures to be implemented in a consistent and nationally harmonised way, and then be applied in a uniform manner by designers, certifiers and builders. This article will detail some important considerations when designing and constructing residential houses in bushfire prone areas for builders and property owners.

Understanding legislative framework for bushfire construction in Australia The construction of buildings in bushfire prone areas throughout Australia is generally governed by both the land use planning and building regulatory frameworks. In New South Wales, development for residential purposes on bushfire prone land must comply with the Environmental Planning and Assessment Act including Planning for Bushfire Protection published by the NSW Rural Fire Service or, where applicable, State Environmental Planning Policy (Exempt and Complying Development Codes) 2008.

The National Construction Code governs construction in Australia.

Notwithstanding any land use planning requirements, standalone residential housing construction in bushfire prone areas is specifically controlled by part 3.7.4 within volume 2 of the Building Code of Australia class 1 and class 10 buildings. This part generally calls up some or all aspects of Australian Standard AS 3959-2009 Construction of Buildings in Bushfire Prone Areas as the primary reference document for construction requirements.

In NSW, AS 3959-2009 is called up as the deemed to satisfy solution with the exception of section 9 for flame zone construction. Buildings that are assessed as requiring flame zone construction are required to comply with planning for bushfire protection, including any specific measures required by the Rural Fire Service through a bushfire safety authority which forms part of the development approval for the land.

While the standard is generally applied across all states and territories in Australia, the way it is implemented may vary based on the requirements of various pieces of relevant legislation. These state based regulations primarily vary the planning requirements / instruments required for applying the standard and may tweak elements of the standard.

However, as a general rule the overall the requirements of AS 3959 are fundamentally the same across Australian jurisdictions.

An important component of construction in bushfire prone areas is determining the Bushfire Attack Level (BAL). The BAL is determined via combining the values of a range of measurements including the fire danger rating for a given area, the vegetation classification, distance of proposed building site from vegetation and effective slope of the land proposed for development. There are five bushfire attack levels as follows: BAL-12.5, BAL-19, BAL-29, BAL 40 and BAL-FZ. The numbers associated with each BAL level denote anticipated levels of radiant heat by kilowatts, while BAL-FZ stands for flame zone, the highest bushfire attack rating.

Bushfire rated construction materials AS 3959-2009 is primarily concerned with improving the ability of buildings to better withstand attack from bushfire thus giving a measure

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feature / bushfire protection

of protection to the building occupants (until the fire front passes) as well as to the building itself.

Of significance to AS 3959-2009 was the publication (in 2007) of the AS 1530.8 series of standards that set out methods of test for building materials, elements of construction and systems subjected to bushfire conditions.

The publication of these standards provides confidence to builders and consumers that the use of products, demonstrated to meet specific test requirements, will result in a safer building. The standards also provide manufacturers with a standardised process and allows for fair and consistent evaluation of products.

AS 3959 -2009 allows for the use of tested materials, but also allows for the use of other materials and components that have been deemed, but not tested, to withstand the assessed level of bushfire impact.

FPA Australia believes all products used in bushfire prone construction should be based on the results of testing.

Benefits of using tested construction materials The main benefit of using a tested system or component is that only the specific materials and construction techniques used in the tested system can be deployed. This ensures the final product when installed in the building will perform in the same manner as originally evaluated by the registered testing authority.

In contrast to a fully tested and certified system, use of a generic system or a non-tested product, such as that detailed in Appendix I of AS 39592009 for roof systems does not allow for any control over the type of materials used or the method of installation.

FPA Australia considers that this makes a generic system or nontested product far less reliable than a tested or certified system. This concern stems from the fact that there is no guarantee that the types of materials ultimately used on site will match those used in the testing and evaluation undertaken by the registered testing authority.

FPA Australia considers that a generic system that uses different materials, or applies different construction techniques to those used in the testing and evaluation of an approved system may not pass the required test, and therefore the building may be more venerable to the effects of a bushfire.

The selection of plywood installed as part of a generic system is an example of where different materials could be used. Plywood is a manufactured wood panel made from thin sheets of wood veneer.

In Australia, plywood is widely available in many varying forms from numerous product manufacturers and importers. Plywood can be manufactured from softwood, hardwood and tropical timbers and the thin sheets of wood veneer can be bonded together using a variety of different glue products. Such variations in plywood production make it most unlikely that all brands of plywood will perform the same when tested under fire conditions. This is just one example of where product selection could influence the performance of a generic system.

New technologies and products FPA Australia acknowledges that the initial application of AS 3959–2009 throughout Australia was troublesome for property owners, particularly those assessed as being subjected to a BAL-FZ rating. This was in part due to the unexpected adoption of AS 3959–2009 shortly after

the Black Saturday fires. The rapid publication of the standard, which included referencing of the newly developed AS 1530.8 standards, unfortunately meant that there was little opportunity for products to be developed and tested to comply with the new test standard.

Despite the problems associated with the initial publication of the standard, industry has responded by investing considerable funds to design and test systems to meet the new requirements. In fact the rapid release of the standard not only encouraged innovation, but defined an expected level of performance and an even playing field. This has resulted in an increased, yet appropriate level of protection for the community.

Referencing the AS 1530.8 series of standards as a benchmark requirement has created a demand for tested product that industry has responded and continues to innovate towards. Multiple products that have been tested to and found to comply with the test standards, are now available in the marketplace.

Homeowners have a right to expect design and construction to a particular assessed BAL level means just that. Any opportunity for a reduction in performance, inadvertently or otherwise through the use of generic systems or untested products should be very carefully considered to ensure consumer and community safety is respected as the priority when determining construction in bushfire prone areas.

Using accredited practitioners All of the points outlined above highlight the importance of property owners and developers using trained, professional practitioners when bushfire reports are required during the planning, approval and development process when building in bushfire prone areas.

In order to meet this need Fire Protection Association Australia has developed the bushfire planning & design accreditation scheme (BPAD).

The scheme accredits consultants who offer bushfire assessment, planning, design and advice services. BPAD practitioners meet criteria based on specific accreditation and competency requirements, including a detailed knowledge of the relevant planning, development and building legislation for each state and territory. Through the accreditation scheme, BPAD accredited practitioners are recognised by industry, regulators, fire agencies, end-users and the community as providers of professional bushfire assessment, planning, design and advice services. The scheme provides an enhanced level of confidence for government, and the community that practitioners are accredited by a suitably robust scheme that is administered by the peak national body for fire safety.

Accredited practitioners are able to provide advice pre-construction and post-construction with respect to product selection, testing and compliance with AS 3959 -2009 and any required development approval. In addition an accredited practitioner can provide advice in relation to additional bushfire safety measures that are not prescribed as the minimum requirements. These measures can include the application of bushfire sprayer systems, construction and use of private bushfire shelters, emergency planning and bushfire survival plans and appropriate landscaping to reduce bushfire impact.

For more information about finding bushfire-tested building products visit www.fpaa.com.au/providers For information about the BPAD scheme visit ww.fpaa.com.au/bpad or call the FPA Australia national office on (03) 8892 3131.

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

SPECIAL MBA NSW MEMBER

OFFER! GET NATIONAL FLEET PRICING* PLUS A $555 GIFT CARD ‡ ACROSS THE ENTIRE D-MAX AND MU-X RANGE! To secure this great offer take your MBA NSW membership card to your local Isuzu UTE dealer.

ISUZUUTE.COM.AU 5-star ANCAP safety rating on 4x4 D-MAX Crew Cab models built from November 2013 onwards, 4x2 D-MAX Crew Cab High Ride models built from November 2014 onwards and all MU-X models. *To be eligible to receive National Fleet Pricing Master Builders Association NSW (MBA NSW) members must hold a valid membership & provide a proof of membership at the time of purchase. Only at participating Isuzu UTE Dealers until 30/06/2015, unless extended, varied or while stocks last. ‡555 gift card made available after purchase, administered by Emerchants and available for use wherever EFTPOS is accepted, card is not redeemable for cash. $555 gift card is only available to MBA NSW members. Member must prove a valid MBA NSW membership at the time of purchase via a membership letter or membership card. ABN holders only. Excludes government, fleet, rental, non-profit and demonstrator vehicle buyers. Only at participating Isuzu UTE Dealers until 30/06/2015 unless extended, varied or while stocks last. Not available with any other offers. ^5 years or 130,000km whichever occurs first, for eligible customers; excludes accessories and trays.

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what’s new

OFFER YOUR CUSTOMERS ENERGY GREEN HOMES AUSTRALIA EFFICIENT HOMES, AND SAVE MONEY OFFERING BUILDERS THE OPPORTUNITY TO BUILD INTERNATIONALLY ACCREDITED ENERGY EFFICIENT HOMES Best Practice Certification believe the development of an ISO50001 Energy Management System is a practical solution to meet the increasing demand for sustainable living.

Built around other well-known standards, including ISO9001 and ISO14001, Best Practice Certification identify Energy Management System certification as the future of smart business. From one-man operators to large organisations, incorporating the required systems and processes into everyday practices is a necessary step when offering environmentally conscious families the green living dream.

Best Practice Certification recently certified the first building franchise in Australia to the international standard, verifying that increased energy efficiency is an outcome of thier management system, which ultimately saves the business and their customers money.

“Now with this accreditation, we are able to deliver homes that are as practical and affordable as they are efficient, opening up a world of lower bills to every Australian, regardless of their budget,” – Mick Fabar, Green Homes Australia.

Aside from tackling soaring energy prices and climate change, IS050001 certification benefits businesses by: • Conserving resources • Facilitating operational due diligence, ensuring business growth • Increasing customer confidence • Satisfying mandatory Government requirements Speak to our friendly team about increasing your energy efficiency and integrating current management systems to receive 50% off gap analysis during April.

Phone: 1300 402 602 Email: info@bestpracticecertification.com.au Web: www.bestpracticecertification.com.au

Access to energy efficient homes has become a reality for all Australians, with Green Homes Australia achieving ISO50001 Energy Management Certification.

GHA are the only national building franchise and organisation in Australia to have achieved this certification, aimed at delivering practical and affordable homes by using energy more efficiently and naturally.

All of the designs and construction methods are certified under this accreditation, ensuring international guarantee that the homeowner will live in an energy efficient home that is suited to their climate, lifestyle, block and budget.

Managing Director of GHA, Mick Fabar says that rising energy prices and increased living costs were a driving factor to achieve this certification.

“In 2015, it is no longer only green-minded people who are interested in owning a more efficient home. With energy prices where they are currently, and forecasted to increase in the future, more Australians are looking to build homes that are more affordable and efficient. This is why it is important for every Australian to have the opportunity to own a home that uses less energy.”

Green Homes Australia is currently looking for builders to join the franchise network across Australia. Find out how you can become a part of the team to service the increasing demand being experienced nationwide and build accredited ISO50001 energy efficient homes.

Phone: 1300 724 661 Email: support@greenhomesaustralia.com.au Web: www.greenhomesaustralia.com.au

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

what’s new 67

If you supply or install genuine COLORBOND® steel products you could WIN more customers as well as $100,000 cash, plus other great prizes. For full details, eligibility criteria, terms and conditions and to register for the COLORBOND® steel GEN-U-WIN promotion, visit COLORBOND.COM/GENUWIN. HOW TO GEN-U-WIN. If your customer wins you could win – it’s that simple! When your homeowner customer purchases any genuine COLORBONxD® steel product valued at $1,500 or more (excluding installation) they could be eligible to enter the promotion and win. If your eligible homeowner customer wins the major prize of $150,000 and has nominated you as their supplier or installer you could win a cash prize of $100,000 as long as you are eligible and have registered.* Similarly, if they win a fortnightly cash prize of $2,000 and have nominated you and you have registered and are eligible, you could also win a cash prize of $2,000.* To claim your prize you must have registered at COLORBOND.COM/GENUWIN prior to the draw.* Homeowner entry starts on 1 October 2014 with the first of the 15 fortnightly draws on Wednesday, 15 October 2014. The promotion closes on 1 May 2015 with the major prize draw on Friday, 8 May 2015. Trade registrations open 1 September 2014. Homeowner purchases from 1 January 2014 until 1 May 2015 are eligible for entry.

YOU CAN MAKE THE GEN-U-WIN PROMOTION WORK FOR YOU IN 3 EASY STEPS. 1. Register now at COLORBOND.COM/GENUWIN 2. Look out for the GEN-U-WIN trade flyer which has further information 3. Hand out the GEN-U-WIN homeowner flyer to all your homeowner customers and encourage them to enter. If your homeowner customer wins you could win! You can order more flyers online at COLORBOND.COM/GENUWIN.

WIN more customers with genuine COLORBOND® steel. *Supplier/Installer registration opened 1/9/14 & ends 11.59pm AEST 1/5/15. Trade entry open to Aust. residents 18+ who are an employee, owner or contractor of a business that supplies and/or installs genuine COLORBOND® steel products in Australia, excl. businesses which are owned by the Promoter other than businesses that are a franchisee of the Promoter. Must have permission from your supplier/installer business owner to enter. See full terms and conditions for details on whom each prize is awarded. In some cases, a prize may be awarded to a person other than that specified on the registration form due to a supplier/installer business’s internal policy. Remind consumers to whom you sell COLORBOND® steel products from 1/1/14–1/5/15 to retain their purchase receipt for verification purposes. Limitations: Max 1 entry form submission per person. Limit 1 Market Research Survey completion per person. Max 1 scratch card per eligible supplier/installer. Draws – Draws at 11am, B6, 41-43 Bourke Rd, Alexandria, NSW 2015. Minor Prize Draws: 15/10/14, 29/10/14, 12/11/14, 26/11/14, 10/12/14, 24/12/14, 7/1/15, 21/1/15, 4/2/15, 18/2/15, 4/3/15, 18/3/15, 1/4/15, 15/4/15 & 6/5/15. Survey Prize Draw & Major Prize Draw: 8/5/15. Minor Prizes (per Minor Draw): $2,000 for consumer winner, $2,000 for pre-regist. supplier/installer nominated by consumer winner & $2,000 for supplier/installer’s nominated COLORBOND® steel distributor/supplier. Survey Prize: $2,000. Major Prize: $150,000 for consumer winner & $100,000 for pre-regist. supplier/installer nominated by consumer winner. Scratch & Win Prizes (for eligible suppliers/installers only): 430 x $25 Coles Myer Gift Card; 15 x Apple iPad Mini 16GB Wi-Fi ($350ea). Apple Inc. is not a participant or sponsor of this promotion. Minor, Survey and Major prize winners published at www.colorbond.com/genuwin & in The Australian within 10 business days of draw. Promoter: BlueScope Steel Ltd (ABN 16 000 011 058), L11/120 Collins St, Melbourne, VIC 3000. Permit No’s: NSW LTPS 14/05439, ACT TP14/02417, VIC 14/4619, SA T14/1247. Full Terms & Conditions, incl. full eligibility & entry details at www.colorbond.com/genuwin. 1. Warranty subject to application and eligibility criteria. For full warranty terms and conditions and to determine the eligibility of your building for the warranty visit www.bluescopesteel.com.au/warranties or call BlueScope on 1800 800 789. 2. Thermatech® technology is not available in the colour Night Sky® and is not available in COLORBOND® Stainless steel. COLORBOND®, Thermatech®, Night Sky®, BlueScope and the BlueScope brand mark are registered trademarks of BlueScope Steel Limited. Activate™ is a trademark of BlueScope Steel Limited©. 2014 BlueScope Steel Limited ABN 16 000 011 058.

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what’s new

™

SUPPORT THE JOIST THE PROPPA WAY™

UNDER CARPET & UNDER FLOATING TIMBER FLOOR Comfort Heat has sourced an improved electric heating mat designed for under carpet and under floating timber floors.

Working alone? Need a helping hand?

As with all electric floor heating products purchased from Comfort Heat, the heating system is controlled by a thermostat with a floor sensor. The floor sensor will ensure the system maintains a constant low temperature under the floor coverings and so minimise the electricity used to achieve the required comfort settings.

Two models of thermostat add flexibility to the heating system, with a standard model which holds a constant temperature, to the digital programmable thermostat which includes a 7 day time clock.

Joist Proppa™ benefits: • PROVIDES TEMPORARY SUPPORT and alignment when securing timber joists, rafters and studs • VERSATILE AND EASY TO USE Can clamp timber from the top or the underside • WORKS WITH TIMBER 35–65 mm in thickness • INCREASES PRODUCTIVITY by reducing time taken and labour cost$

A quotation for the under floor heating system can be provided from plans which can be e-mailed to Comfort Heat directly. The website www.comfortheat.com.au provides information on all products available, from full installations to DIY kits.

For more information contact: Local Call: 1300 13WARM Phone: (02) 9979 8600 Fax: (02) 9979 7706 Website: www.comfortheat.com.au

THE BAYER PROTECTION PROGRAM OFFERS HOMEOWNERS TOTAL TERMITE PROTECTION A first for the termite industry in Australia, the Bayer Protection Program offers homeowners total termite protection -- a combination of regular termite inspections (e.g. annually) to detect the presence of termites; and a physical barrier (Kordon®) to prevent entry via areas that can’t be inspected.

The Bayer Protection Warranty starts with an inspection of the home by a Bayer Accredited Timber Pest Inspector. If the home is termitefree, and possible conditions which may be conducive to termite attack are addressed, your Bayer Protection Warranty can be renewed. The same inspection takes place each year to give the homeowner total termite protection. This warranty can be renewed annually (fee applies) for the life of the structure.

The Bayer Protection Warranty covers homeowners for up to $1 million worth of termite damage due to product failure or any other means of termite entry.

“the framer’s mate!”™

To activate your Bayer Protection Warranty visit www.kordonwarrantycentre.com.au or for further information contact the Bayer Protection team on 1800 552 802.

Tel: 0412 176 253 www.proppatools.com Aust. Reg. Des. No. 358436

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

what’s new 69

LEICA NEW RUGBY 670 AND 680 ROTATING LASER SLOPES DONE EASY With close to 200 years of experience pioneering solutions to measure the world, Leica Geosystems products and services are trusted by professionals worldwide to help them capture, analyse and present spatial information.

Leica Geosystems’ Rugby Lasers are the most accurate and reliable rotating lasers for general construction and machine control applications that require precise grade. They can be used wherever level, single or dual grades are required, and are compatible with Leica Geosystems’ 2D and 3D Machine Control Systems for ultimate grade control.

• The Leica Rugby Laser level has been available in Australia for more than 10 years now with the most recent series being the Rugby 600. The Rugby 600 range is a general construction laser although within the range many variations are available ranging from the single button 610 to the NEW Rugby 680. The 680 is the latest and greatest in the 600 range and offers some special features.

• The Leica Rugby 670 and 680 are great general construction lasers with digital grade capability with dial-in grade in single or dual axis, easy and fast at the touch of a button. The unique Smart Slope function continuously monitors time and

temperature changes to ensure accurate performance over the course of the day.

Price is also a very strong point for these grade lasers.

• A great general construction laser with digital grade capability • Dial-in grade in single or dual axis, easy and fast at the touch of a button • The unique Smart Slope function continuously monitors time and temperature changes to ensure accurate performance over the course of the working day • Teamed with the RE160 receiver this offers such unique features as strobe light rejection and half mm accuracy.

Leica Rugby lasers are the toughest rotating lasers and are suitable for all construction applications. Level, align and square much quicker than ever before, eliminating costly errors and downtime.

For more information contact: Website: www.crksurveyshop.com.au/ dealers

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directory PILING

MAINTENANCE

ALL AUSTRALIAN MAINTENANCE GROUP "Quality you can trust" • Colour Consulting

Screw Piles & Excavations can access small or difficult sites such as backyards entering via the carport and for very small access jobs we have a modified Dingo.

Servicing from Newcastle to Gold Coast and inland areas.

Screw Piles & Excavations can be contacted on:

• Exterior and Interior Painting of Homes and Buildings • Staining and Clear Coating • Concrete Staining

• Faux and Decorative Finishes • Texture Coating • Epoxy Coating • Graffiti Removal • Special Effects • Free quotes

Leading painting contractors in NSW

0422 039 988

Office: (02) 9822 0954 info@allaustralianmaintenance.com.au www.allaustralianmaintenance.com.au

0409 939 967

Email: dennis@screwpiles.com.au

www.screwpiles.com.au

SOLAR

Why Choose Endless Solar?

Endless Solar has been supplying to builders and plumbers in the industry for nearly 10 years.

•

Advanced Evacuated Tube technology

•

Greater Savings on your hot water bill

•

Smarter solar hot water designs

•

High quality products backed with genuine warranties

•

Endless Solar uses evacuated tube technology for our solar hot water heaters, which are more efficient than flat plate collectors, especially in the winter months. These collectors are covered by a 15 year warranty.

Quality Controlled - Certified to the ISO 9001 Quality Management System

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Proven credibility and expertise

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Expert advice in solar thermal solutions

Our tanks use marine grade stainless steel, are Australian made and are also backed by a 15 year warranty. If you would like your system to have gas boosting Endless Solar provides Bosch instantaneous boosters as a back up for the solar system.

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Simply looks and works better than other systems

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Solid reputation and many years experience

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Personalised service

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Australian Standards® Certified designs, processes and components

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Ready for rebates

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Frost Protected

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Self Cleaning

•

Built to Last

Morning after the 2009 Sydney dust storms.

SELF CLEANING

No climbing on your roof to wipe away grime, mould and pollution

Morning after the 2009 Sydney dust storms.

Endless Solar is located in Auburn in Sydney and deliver all over Sydney and surrounding area

Free Quote: 1300-889-585 M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

www.endless-solar.com.au

DATES FOR YOUR DIARY

12 POINT CPD SEMINAR NEWCASTLE............................................................................................................26 MAR CASTLE HILL........................................................................................................... 22 APR BALLINA................................................................................................................... 14 MAY

TRADE EXPOS NOWRA....................................................................................................................18 MAR SUTHERLAND.......................................................................................................... 27 MAY

REGIONAL ROAD SHOWS GRAFTON................................................................................................................. 29 APR TAREE....................................................................................................................... 30 APR

DIVISION MEETINGS CENTRAL COAST..........................................................................................1 APR, 6 MAY CENTRAL WEST....................................................................................... 18 MAR, 20 MAY NULLA….................................................................................................................. 13 APR EASTERN SUBURBS.................................................................. 24 MAR, 28 APR, 26 MAY HUME......................................................................................................................... 1 APR ILLAWARRA...................................................................................................2 APR, 7 MAY INNER WEST............................................................................................. 17 MAR, 19 MAY MANLY WARRINGAH.................................................................... 12 MAR, 9 APR, 14 MAY MANNING/GREAT LAKES......................................................................... 24 MAR, 19 MAY MIA............................................................................................................................. 6 MAY MID NORTH COAST................................................................................................ 18 MAY NORTH COAST........................................................................................................ 19 MAY NORTHERN SUBURBS............................................................... 19 MAR, 16 APR, 21 MAY ORANA...................................................................................................... 19 MAR, 21 MAY OXLEY....................................................................................................... 25 MAR, 20 MAY PARRAMATTA CUMBERLAND.................................................... 18 MAR, 15 APR, 20 MAY RIVERINA................................................................................................................... 7 MAY SNOWY MOUNTAINS.............................................................................................. 27 MAY SOUTH COAST/SHOAL.............................................................................15 APR, 20 MAY SOUTHERN HIGHLANDS........................................................... 10 MAR, 14 APR, 12 MAY ST GEORGE............................................................................................................. 21 APR TWEED..................................................................................................................... 20 MAY

For all events visit our website www.mbansw.asn.au

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the way we were

WHAT THE MBA SAID ON MARCH 25, 1953

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W J A N U A RY / M A R C H 2 0 1 5

Bligh Street, Sydney, a Cbus Property Development.

cbus When it comes to super, you can rely on

At Cbus, we make meeting your super obligations easy:

• We have a range of online contribution payment options, including the Cbus Clearing House* which will allow you to pay your employees’ super into multiple funds using the one system.

• Access to financial advice for Cbus members.

• Regular communication with members and employers.

At Cbus we invest back into the building and construction industry as part of our long-term investment strategy, thereby creating jobs.

Call Cbus on 1300 361 784 or visit www.cbussuper.com.au *The Clearing House service is provided by Westpac Banking Corporation at the request of Cbus. Read the relevant Cbus Product Disclosure Statement 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.