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Building Excellence Awards 2015 Winners Full story page 26

also: Senator Hon. Simon Birmingham address to Master Builders National Industry Dinner

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MBA response to Legislative Council Select Committee on Skills for All Program

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Separating WHS Compliance and Education

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Contents SA BUILDER OCTOBERDECEMBER 2015

President: Richard Bryant Deputy President: Peter Salveson Vice Presidents: Mario Romaldi, Christopher Leopold Past President: John Kennett Treasurer: Mark Beatton Councillors: Enzo Zito, Jock Merrigan, Nick Abley, Neil Mossop, Nathan O’Neill, Fred Pascale, Russell Bianco, Patrick Innes Master Builders South Australia PO Box 10014 Gouger St.

Congratulations to all the 2015 Building Excellence Awards winners See special feature beginning on page 26

47 South Terrace, Adelaide, South Australia Phone: (08) 8211 7466 Fax: (08) 8231 5240

Forewords 4

Deputy CEO’s Report

6

President’s Report

Email: buildsa@mbasa.com.au Executive Editor: Master Builders Association

Reports 8

Master Builder News

Awards 26

Building Excellence Awards 2015 Winners

Updates 33

Training

36

Finance

39

Legal

41

Industrial Relations

43

Planning

45

Safety, Quality and Environment

49

WHS News

50

Development and Technical

Published by: Crowther Blayne Media Specialists Phone: 1800 222 757 Email: publications@crowtherblayne.com.au Web: www.crowtherblayne.com.au Business Development Manager: Trish Riley Sales: Paul Baird, Peter Shepherd and Rose Delosreyes Editorial: Samantha Regan & Jessica McCabe Graphic Design : Danny McGirr Design Team: Byron Bailey, Andrew Crabb, Michelle Triana Production: Yvonne Okseniuk Printed by: Newstyle Printing

Features 52

Pascale / Bunnings Warehouse Seaford

55

SA Construct / Mayfair Hotel

2

SA BUILDER OC TOBER –DECEMBER 2015


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Deputy

CEO’S Report IAN MARKOS, Master Builders SA Deputy CEO

The importance of industry awards of excellence should not be overlooked The 24th annual Master Builders Building Excellence Awards ceremony was held at the Adelaide Convention Centre on Friday 14th August and attended by over 965 members, guests and industry representatives. Award ceremonies often generate strong opinions and more often than not, the industry is divided between those who value awards and industry accolades and those that don’t. Obviously judging by the number of attendees and the amount of entries received, it’s pleasing to note Master Builder members understand the commercial value associated with winning a coveted building excellence award. The awards evening represents the time to acknowledge some of the many outstanding achievements of our industry and celebrate the success of some of our world class building projects (that are featured in this edition of the SA Builder). Whilst 2015 has been another challenging year, we continue to represent one of our States’ most important industries. Building and construction remains one of South Australia’s vital economic drivers. It’s the members of the Master Builders Association who, for over 131 years have constructed our buildings and will continue to do so well into the future. It’s their energy, skill and knowledge that will continue to support the development and progress of South Australia. Being able to market your company as a Master Builder’s Building Excellence Award winner is a great competitive business advantage and the Award’s influence cannot be underestimated when clients are selecting a builder or sub-contractor. For the commercial, industrial and civil members being able to add to the tender documentation that you are an Award winner adds that third party endorsement of quality and integrity to your bid and indeed sets you apart from others. Aside from the obvious commercial benefits associated with winning industry accolades, the Master Builders awards evening continues to be one of the most highly anticipated events on the industry’s calendar. It’s not only a night of close competition, but also a great evening to thank your staff, clients and network with industry peers. It’s the night to celebrate all that is great about our unique industry and enjoy the successes you all continue to achieve and deserve. With another sensational line up of terrific entertainment, it’s no wonder members and independent industry representatives partied on well into the night. Whilst the Premier is a staple at the awards night, unfortunately he was unable to attend this year. However, he did send his congratulations and well wishes via a pre-recorded message over the big screens and pledged his ongoing support of our industry.

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Master Builders SA President, Richard Bryant spoke of the tireless efforts of the entire Master Builders team, the Council of Management and Executive Board to continue to lobby the government to reduce red tape, fast track development projects and bring about positive legislative change. He spoke of ongoing support for all members and encouraged them to engage the services of the Association’s professional staff and to use the various products designed specifically for member’s needs. We continue to support our members with a series of industry specific solutions to assist you through the current market challenges. Earlier this year, we launched the Associations very own legal firm; Master Builders Legal Services. We’ve streamlined Master Builders Insurance Services and improved membership categories and member products and services are now available 24 hours a day, via the fully interactive Master Builders web site. Providing the best value legal advice, most accurate work, health and safety advice and most relevant industry wide education and training, will ensure members grow and prosper, to enjoy the true Master Builders competitive business advantage that will continue to be celebrated at our gala awards extravaganza on an annual basis.

SA BUILDER OC TOBER  – DECEMBER 2015


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SA BUILDER OC TOBER – DECEMBER 2015

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President’s Report RICHARD BRYANT, Master Builder South Australian President

National advantage On a state, national and international level there is a commonality in the issues that confront the building and construction industry. Too often we succumb to an introspective and regional focus rather than the strength drawn from directing our vision to the national and international. In late August I was delighted to host the Master Builders National Dinner and Executive meetings in Adelaide, which reinforced the gravitas not only nationally, but internationally of the Association’s influence, strength and solidarity. There is no doubt generational change is occurring in the Master Builders, with a review and reassessment of the national strategic plan with greater emphasis on input from the States and Territories. Aligned with a more universally subscribed national plan is the program for all States to embrace undertaking an external corporate governance review, adoption of the national branding and logo by all States and Territories, development of a national structure for advocacy and development of national approach to policy making. Strategically we can improve the process of national policy making through more formal and timely coordinated procedures for consultation, reporting and formulating policy. It is vital to separate and identify what are operational, strategic and policy issues to streamline the process of framing a robust and multi-plank national platform of policies. The underpinning foundation strategy is to ensure that the Master Builders remains relevant in representing and servicing its members

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and the industry. It is not enough to simply be the custodians of a fine heritage; the Association must continue to strategically develop and provide world’s best services and products for our members. Aligning nationally we have become partners in Master Builders Insurance Service to ensure that members have access to specifically tailored insurance policies developed exclusively for the building and construction industry. It is vital that across the states and territories that all bodies partner in national initiatives. A national strategic view will assist the Association to enter into more alliances and agreements with stronger and more influential corporate partners and also assisting in ascribing to national membership accreditation, licensing and training. Communicating and networking with my fellow State and National office bearers, Executive Directors and members during the national meetings was an extremely valuable opportunity to understand the a commonality of the industry challenges we face and how as a national body we can strategically plan to meet these issues. The national acceptance of these strategies and plans will ensure the Master Builders remains the most relevant peak body representing the interests of the building and construction industry. To have your say I encourage all members to become involved with the Association by attending your sector meetings and voicing your opinions and views.

SA BUILDER OC TOBER –DECEMBER 2015


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Master Builder News WILHELM HARNISCH, CEO Master Builders Australia

‘Building Australia’–Master Builders National Conference I am extending a personal invitation to join me at Building Australia–Master Builders’ biennial national conference. The conference will be held at Jupiter’s on the Gold Coast on 12–14 November. We are returning to the Gold Coast by popular demand. There is no need for me to ‘sell’ the destination–it sells itself. If you have been to our National Conference in past years, I look forward to seeing you again and promise you that this year’s event will be even better. The program will focus on giving you tools to grow your business. Speakers have been carefully selected to cover a range of topics important to the contemporary building and construction industry. We have enlisted high profile speakers who can give you the edge by sharing their knowledge of topics and trends, which affect businesses large and small, commercial and residential. In acknowledgement of the phenomenal rise of social media, we have included a presentation by an expert who will give you the confidence to harness the power of social media platforms to extend your advertising reach. Some of you who are daunted by social media will be surprised by the benefits to be gained by ‘engaging’. The XXI Commonwealth Games will be held on the Gold Coast in 2018. Over 11 days of competition, 6,500 athletes and officials

from 71 member countries and territories will participate in 17 sports, including para-sports for elite athletes with disabilities. It is one of the biggest international multi-sporting events in the world. The infrastructure associated with the Games is currently under construction, and builders involved have kindly agreed to share their insights at a case session prior to a tour of sporting and residential building sites. This is a unique opportunity for members to see firsthand the complexities involved in delivering projects of this magnitude. A comprehensive social program and special Ladies Tour have been designed to entertain and ensure that the event is an exciting experience for everyone. The National Excellence in Building and Construction Awards presentation dinner on the final evening will be a spectacular finale. The 2015 Building Australia conference and National Awards ceremony promises to be invaluable for your business and rewarding for your social calendar and I look forward to welcoming you to the Gold Coast. For more information or to register your details or book your place, visit http://www.masterbuilders.com.au/events/national-conference

CHRISTOPHER WILTSHIRE, Development & Technical Advisor

Building The Future  –Advocacy Update: Master Builders SA has extended its technical capacity with the appointment of Christopher Wiltshire as Development and Technical Advisor. Mr Wiltshire has extensive qualifications and experience in building, planning and architecture and says he joined Master Builders SA to share his technical expertise beyond Council circles. “I have a passion for the building industry with particular interests in design, construction techniques and working relationships with people,” he said. “I would like to play a big part on the future direction of building in this state.” Christopher has completed a Bachelor of Architecture, a Graduate Certificate in Building and Planning, and a Graduate Diploma in Urban and Regional Planning. This knowledge was extended and applied in the planning and development teams at the City of Charles Sturt,

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the Salisbury City Council and the District Council of Mallala, where he was focused on ensuring on-site building compliance and issuing building approvals for residential, commercial and industrial buildings. He was also chair of the Mallala Council Building Fire Safety Committee, requiring a deep comprehension of the maintenance and operational procedures of public buildings. “I have built a strong understanding of the Development Act, Regulations and the B.C.A (National Construction Code) over the years, as well as interpreting various Council Development Plans,” he said. “I look forward to working closely with members of Master Builders SA.” Christopher is accredited by the Australian Institute of Building Surveyors (A.I.B.S) as a fully qualified Building Surveyor.

SA BUILDER OC TOBER  – DECEMBER 2015


Are your showers ticking time bombs? Despite builders best efforts, leaking showers are consistently listed in the BSA’s top ten defects. Sadly, sometimes this is due to substandard workmanship, but most of the time it is the design of the shower itself which is creating the potential for disaster. Most contractors are at a complete loss as to why, but detailed testing has shown how, by the action of expansion and contraction, water is “pumped” along glue cavities to escape the shower enclosure, no matter how well it is water-proofed. The best way to prevent the problem is to seal the screen directly to the membrane, and NOT to the tiles. Waterstop Streamline provides: •

Positive connection between screen and membrane

Maximises floor area

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Complies with and exceeds AS3740

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Minimum change for maximum benefits

My business has expanded rapidly since we star ted using the Waterstop Streamline ho b and I now have tilers recommending the Waterstop Streamline system – and me – to othe r bu ilders. Everyone that uses it loves it.

Mr Fred Medd ings, Managin g Director Watertight Austr alia (Water-proo fers)

Remove the doubt. Fit Waterstop Streamline ... and forget about leaking showers.

Water escapes shower enclosure

Water path

Bed

Hobbed shower

Tile

Screen ‘sealed’ to tiles with silicon Tile

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Water escapes shower enclosure

Membrane

Waterstop Streamline Screen ‘sealed’ to tiles with silicon

Screen

Screen

Rebated or flow-through shower

By using Waterstop Streamline I know the shower will be perfect every time. It has to be, because this prod uct is designed to dictate placemen t of all of the other components to make up a complete shower. It’s virtu ally impossible to stuff it up.

Water path

Streamline

Screen Screen sealed to membrane with silicone

Keyway to trap liquid membrane

Tile Tile height gauge

Tile Hob

Bed

Bathroom floor tile height optional Substrate

Bed Membrane

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Master Builder News

IAN MARKOS, Deputy Chief Executive Officer

Building The Future –Advocacy Update The biggest reform opportunity is now being considered by Parliament. The Planning, Development and Infrastructure Bill is not just a series of amendments designed to tweak how our sector interacts with planning laws, it is a complete rewrite that attempts to set up a new system. Its main aim is to “support and enhance the State’s prosperity”; an aim that Master Builders SA wholeheartedly supports as we look for ways to grow our industry, but the complexity of this reform throws up some elements likely to dampen that growth. We will continue to work with Parliament to explain how the proposed legislation of an Urban Growth Boundary acts as a dampener on jobs and choice of living, and have already spoken about how the proposed infrastructure levies need to be carefully policed to avoid increasing the burden on homebuyers rather than softening the blow. Local councils also need to be given incentives to convert existing planning instruments sooner, and penalties for moving later. The big reform likely to affect our sector is the creation of a “menu” of planning options that apply across the State. Rather than having multiple schemes for multiple councils, the aim is to have a reduced number of schemes for all councils. But Local Government still needs to make the shift, and that is where the transition may hold back the prosperity the Government wants. We have raised this concern in the media, with Government, the Opposition and the minor parties, and will continue to work to raise new options to progress those reforms that will help the sector. Master Builders SA’s feedback on the Government’s Bill can be found at http://www.mbasa.com.au/media/past-policy-submissions, with updates to be posted as our working group continues to develop our response.

The document also makes clear that subcontractors can approach DPTI for more information on contractual conditions – a right that exists presently but is being overlooked. The Statement of Good Practice–Subcontractor Engagement is currently being considered by the Construction Industry Forum, of which we are a founding member, before DPTI reviews its internal processes to manage the expectations captured in the document.

Work Health and Safety changes A review into the operation of Work Health and Safety legislation was tabled in Parliament late last year. Among the recommendations was a call to remove the right to silence in the face of a SafeWork SA investigation. Master Builders SA remains strongly opposed to such a change, which we believe was recommended to make up for the shortcomings of lazy investigations. Further, the recommendations have missed the opportunity to cut some of the red tape that binds the State’s businesses. While the review has been tabled, at the time of writing there has been no tabling of legislation to implement those recommendations. We have raised our concerns with the Government, the Opposition and the independents, but will actively lobby for sensible changes once the proposed legislation is unveiled. This has not stopped the Government from introducing changes in line with its SafeWork SA reforms. Master Builders SA worked closely with the State Government to shape these changes, which are designed to better arm businesses and their employees with safe operations. The separation of education and compliance activities within SafeWork SA still does not engender trust with the industry; we are looking to see what changes can be made to ensure businesses can safely rely on the organisation without fear of being exposed when asking for help.

Industry–wide Reform Treasurer Tom Koutsantonis has challenged Master Builders SA to develop some pragmatic long-term reforms that will underpin an industry recovery. It’s a big task, with more than 40 options already suggested by members. A working group will meet in October to develop those suggestions deemed to be best placed to deliver practical reforms with a neutral budget impact. These suggestions will be distributed more broadly for comment before being raised with the Treasurer’s office. We have extended this project to involve residential and commercial sectors, with different reforms developed for each. We are in constant contact with the Treasurer and his office to ensure the goodwill we have developed is not lost during this process.

Subcontractor Engagement

Time No Longer Ticking Away The Opposition and independent parties have signalled their intention to oppose shifting South Australia’s time zone to match the Eastern States. Master Builders SA was active in raising the impact of the shift on the industry, noting that talk of economic benefits completely ignored safety repercussions, which needed to be resolved for the benefit of South Australia. The Department of State Development sought Master Builders SA’s advice as to measures the industry would need to offset the impact of a change of time zones, including funds for retraining, additional costs, and so on. While this matter appears to be settled for the moment, there exists a possibility it will resurface. We will look for industry offsets if that occurs.

Master Builders SA has worked with AMCA, NECA and the Master Plumbers’ Association to develop an addition to the existing Department of Planning, Transport and Infrastructure’s Statement of Good Practice. The document, called the Statement of Good Practice–Subcontractor Engagement, focuses on fair treatment for all industry participants, including a clear commitment by all parties to share information about programming and essential works deadlines.

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SA BUILDER OC TOBER  – DECEMBER 2015


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Master Builder News

IAN MARKOS, Deputy Chief Executive Officer

South Australia Counts–Economic Update South Australia’s building and construction industry has shouldered some sobering data over recent months, but the appointment of a new Prime Minister with support of South Australian MPs offers not just a new beginning, but a much-needed circuit breaker. The fact that we can boast the highest unemployment rate in the country– not just the mainland states, but in all jurisdictions– marks a clear need for change. On a trends basis, unemployment rose from 7.9 per cent in July to 8.1 per cent in August, while most other states were sitting below 7 per cent. Th is clearly underscores the need for all South Australians to work together on true reforms that will deliver jobs. The planning reforms currently before Parliament are a good example–they have the potential to create jobs across the State so we need to look at what changes can be made to bring the benefits to the community this year and next year rather than waiting for another three to five years to see an impact. As a community we need to look for long-term jobs that deliver longterm security. Now is the time to work together because, frankly, it affects us all, not just those looking for work. Construction statistics show a mixed story. While the value of construction work undertaken in July fell from the previous month – including a 7 per cent fall in new private housing construction–the value of work undertaken over the last 12 months has increased almost 11 per cent to $2.365 billion in comparison to the previous 12 months. Perhaps more importantly, the value of work undertaken is 36 per cent higher than the 10–year average. But this also hides a fall in actual work. There has been 7448 South Australian housing starts in the past 12 months, down 8.5 per cent from the previous year and 7.5 per cent on the 10– year average.

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So we will take confidence that people are willing to invest, but there is certainly room for more activity so South Australian builders can find the work they need to continue to employ South Australians. There are fewer positive features in the commercial sphere. Although the lumpy nature of the work has produced a positive month of $319 million of construction activity, the $1.41 billion of South Australian construction work remains 4.4 per cent lower than the previous 12 months. Work on the New Royal Adelaide Hospital is winding up, so we can expect this data to reflect that slowing in coming months, but what is more important is the pipeline of projects to replace the hospital. The State Government has outlined its infrastructure pipeline and recently announced a joint investment with the Federal Government in the $985 million Northern Connector, and we would expect to see building construction rise in the wake of the development. But while the private sector has mooted some projects, we are yet to see the wave of construction that will rejuvenate the sector. The Northern Connector was signed off by both Federal and State Governments, and early signs indicate that this will be a template for future interactions under Prime Minister Malcolm Turnbull, and not an icon of a bygone era. Th is benefits South Australia – and we look forward to a cooperative approach that supports our State as we rebuild. We hope the necessary spark will come soon, whether that is a new wave on the Riverbank, the clarity of new planning laws, or the updating of the 30-year plan that sends a clear signal that the time for development is now.

SA BUILDER OC TOBER –DECEMBER 2015


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Master Builder News

WILHELM HARNISCH, Chief Executive Officer

Call for ABCC Bills to be re-introduced Master Builders welcomes the support of Senators, including those from the cross bench, who voted to restore the Australian Building and Construction Commission (ABCC),” Wilhelm Harnisch said. “While clearly disappointed the Senate did not pass the Bills on this occasion, Master Builders welcomes the Government’s commitment to continuing to work with the cross bench Senators to find ways toward a solution that upholds the community’s interests,” he said. “While the current controversy surrounding the Royal Commission is unhelpful, Master Builders calls on Senators not be distracted from supporting the reestablishment of a regulator able to effectively respond to the compelling evidence of thuggery, intimidation, coercion and confl icted interests and alleged corruption that robs the community of more schools, hospitals and childcare centres,” Wilhelm Harnisch said. “Master Builders looks forward to the reintroduction of the Bills to the Parliament in order that the reforms can be properly advanced,” Wilhelm Harnisch said.

Members to benefit from key changes to MBASA’s insurance services Master Builders SA’s commitment to the continuous improvement of its products and services is marked with our transition to MBA Insurance Services (MBAIS). The decision to join forces with Master Builders Australia’s leading national insurance broking business was made after a detailed review of our current insurance offerings and member feedback highlighted a need for positive and progressive change. MBAIS currently represent the interests of over 8,000 builders and sub-contractors throughout Australia. It has a strong focus on service innovation and caters to all members of the building and construction industry–small and large builders, subcontractors and suppliers. It has delivered valuable new initiatives to the market, including the recent introduction of an online Building Indemnity Certificate issuing system; available exclusively to members 24 hours a day, 7 days a week. Over the next 3 years, MBAIS plans to return over $10M into Master Builders Associations around Australia, including South Australia; ensuring that our members continue to receive the highest level of service in other areas of their business, such as in training, WHS advice and planning services. Having the ability to access all forms of general insurance services direct through Master Builders SA is a huge benefit to our members and we encourage you to contact one of our MBA Insurance Services (SA) team on 1800 150 888 or email sa.insurance@mbais.com.au

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SA BUILDER OC TOBER –DECEMBER 2015


ABBTF Operating Results 2014/2015

During the year to June 2015 the Australian Brick & Blocklaying Training Foundation (ABBTF) achieved the following: • 105 careers events and promotions were attended to encourage young people into the trade. Many of the events included Try-a-Trade. • 2,193 students were provided with Try-a-Trade and Step Out Programs at targeted schools. • 2,841 schools were provided with regular trade and career information, including a student nomination web page. • An extensive recruitment program to fill apprentice vacancies was conducted with online promotion, job advertising and candidate assessment. • 385 job seekers received short Work Ready bricklaying courses with an on-site trial and sign up of the new apprentice. • 11,000+ Facebook Fans were reached via social media contact targeting Gen Y and Z.

• 63 adult apprentice bricklayers were supported with a $2,000 incentive for employers to partly offset the adult pay rate cost.

2,474

2,042

ABBTF Supported Apprentices

1,641

1,302

ABBTF Supported Commencements 890

595

• Contacted supported apprentices and their employers to provide support in line with the retention program.

ABBTF Supported Completions

302

478

63

35

385

80

• 19 e-newsletters, 8 print newsletters and 58 blog articles were created to inform the industry on brick and blocklayer and ABBTF activities.

Careers Expo Events Attended

• Gained extensive media coverage on the bricklayer shortage leading to promoting and filling apprentice job vacancies. • Worked with a growing number of residential builders to share ABBTF strategies and address the bricklayer shortage.

• Supported quality apprentices participating in WorldSkills Australia competitions at regional, national and international level.

• 1,641 apprentices were supported with • Provided a scholarship to support the training employment and training via the Brickstart and preparation of the WorldSkills bricklaying Subsidy, an increase of 26% on the previous competitor for the 2015 WorldSkills year. International competition.

Adult Apprentice Support Work Ready Course Enrolments

105

127

2,193

2,616

Peak Monthly Websites Visits

16,832

8,308

Facebook Fans

11,100

7,800

Step Out Program and Try-a-Trade

FINANCIAL RESULTS

4,620

4,248

Total Expenditure

4,672

3,950

Operating Surplus

(52)

298

Training Reserve

2,203

2,255

App Subsidies to Employers

2,052

1,433

Recruiting and Training Support

429

366

Taster and Work Ready

236

314

Promotion

373

337

Development

870

832

Administration

712

668

Geoff Noble, ABBTF Chief Executive Officer

ABBTF Strategy Achieves Younger Workforce

Supported by Brick & Block Manufacturers of Australia

August 2015

800

No. of Bricklayers

700

2014/15 2013/14 $000’s $000’s

Revenue

The full Statutory Annual Report will be available on the website or as hardcopy on request.

Bricklayers Ages - Censuses 2001, 2006, 2011

2011 2006 2001

600 500 400 300 200 100

17

Ye a

rs Ye 19 ars Ye 21 ars Ye 23 ars Ye 25 ars Ye 27 ars Ye 29 ars Ye 31 ars Ye 33 ars Ye 35 ars Ye 37 ars Ye 39 ars Ye 41 ars Ye 43 ars Ye 45 ars Ye 47 ars Ye 49 ars Ye 51 ars Ye 53 ars Ye 55 ars Ye 57 ars Ye 59 ars Ye 61 ars Ye 63 ars Ye 65 ars Ye 67 ars Ye 69 ars Ye ar s

0

15

A comparison of ages of bricklayers at each of the past three Censuses shows a marked increase in younger bricklayers in the workforce. The ABBTF programs over past years have boosted apprentice numbers and younger people joining the trade. Joint contributions by Brick and Block Manufacturers and the building industry purchasing their products continues to be a sound investment in addressing the skill shortage in bricklaying.

2014/15 2013/14 Nos. Nos.

Apprentices in Training

• Surveyed 1st Year apprentices to identify the influences and reasons for deciding to become a bricklayer.

• Provided advice to Government and industry • Up to 200 apprentice job vacancies were identified through the support of training organisations in some states on bricklayers and Group Training Companies. workforce participation and training strategies. • Introduced a Spotters Fee reward to past and current apprentices who nominated a new apprentice in bricklaying.

OPERATING RESULTS

Source: Australian Bureau of Statistics 2011 Census compared with two prior Census Reports data.

1300 66 44 96

www.abbtf.com.au | www.becomeabricklayer.com.au


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Master Builder News

IAN MARKOS, Deputy Chief Executive Officer

No immediate joy for SA jobs South Australia is the only state without good news in September’s unemployment figures. While unemployment remained unchanged at 7.9 per cent on a seasonally adjusted basis in both July and August, the rate rose from 7.9 per cent to 8.1 per cent on a trends basis, according to data released by the Australian Bureau of Statistics. It cements South Australia’s position as having the country’s worst unemployment record Ian Markos said. “We know this is not going to change in a hurry, and it is fairly widely accepted that there is likely to be more pain than joy in coming months,” he said. “It underscores the need for all of us to work together on true reforms that will deliver jobs. The planning reforms currently before Parliament are a good example–they have the potential to create jobs across the State so we need to look at what changes can be made to bring the benefits to the community this year and next year rather than waiting for another three to five years to see an impact. “But again, as a community we need to look for long-term jobs that deliver long-term security. Now is the time to work together because, frankly, it affects us all, not just those looking for work.”

Victoria and Western Australia both recorded a small upshift in unemployment on a trends basis, but both also experienced a fall in their seasonally adjusted rate, from 6.4 per cent in July to 6.1 per cent in August.

STEPHEN MULLIGHAN, SA Minister for Transport and Infrastructure JAMIE BRIGGS, Assistant Minister for Infrastructure and Regional Development

Tender call for upgrade of Marion Sturt road intersection The Australian and South Australian Governments are wasting no time delivering the Darlington Interchange Upgrade by today opening the tender call for an early works project on the intersection of Sturt and Marion roads. Assistant Federal Minister for Infrastructure and Regional Development Jamie Briggs said the $3 million upgrade would reduce travel delays and boost the productive capacity of the local network. “This project will also provide an alternative option for motorists when major construction begins on the Darlington Upgrade later this year to streamline the flow of traffic,” Mr Briggs said. “The $620 million Darlington Upgrade will slash travel times for tens of thousands of motorists, boost freight efficiency and support about 370 jobs during construction. “This project is another example of the Australian and South Australian Governments delivering on our shared plan to create new jobs and grow the economy so everyone can prosper.” South Australian Transport and Infrastructure Minister Stephen Mullighan said approximately 69,000 vehicles used the intersection each day. “This intersection will be expanded to include an additional right hand turn lane from the east on Sturt Road and there will be two right turn lanes, one left turn and two through lanes from the west on Sturt Road,” Mr Mullighan said. SA BUILDER OC TOBER – DECEMBER 2015

“Left and right turn lanes on Marion Road will also be extended for traffic coming from the south. These changes will reduce the delays for all traffic at the intersection and boost capacity. “Tenders will be conducted in line with the State Government’s Industry Participation Policy, which assists small and medium South Australian businesses to win government contracts. “Construction on the upgrade of the Sturt and Marion road intersection should start in mid-October and be completed by the end of this year, weather permitting.” The Australian and South Australian Governments have committed a joint $1.5 billion to ensure the Torrens to Torrens and Darlington Upgrade projects are delivered by the end of 2018. More information is available at www.infrastructure.sa.gov.au/darlington

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Master Builder News

THE MINISTER LEON BIGNELL , Acting Minister for Regional Development

Regional Development Opportunities–Redevelopment of Loxton Research Centre one step closer The redevelopment of the Loxton Research Centre forms part of the $25 million Regional Economic Development element of the $265 million SARMS program. SARMS supports the region to build on its global reputation for food, wine and clean technology expertise under the Government of South Australia’s economic priority premium food and wine produced in our clean environment and exported to the world. For more information visit www.pir.sa.gov.au/regions/sarms. To register to receive more information on the program, please email PIRSA.sarmsadmin@sa.gov.au.

New ferry service and luxury resort proposed for Kangaroo Island Redevelopment of Loxton Research Centre one step closer The State Government’s $7.5 million redevelopment of the Loxton Research Centre has reached another milestone after being endorsed by Parliament’s Public Works Committee. Acting Minister for Regional Development Leon Bignell said the Loxton Research Centre redevelopment would be a hub for new ideas and opportunities from across the globe. “We then want to apply these ideas in the River Murray region,” Mr Bignell said. “The collaboration between industry and researchers will ensure South Australia builds on our reputation and market edge as a leader in premium food and wine production from our clean environment. “This new centre will be the home of many key industry groups, including the Almond Board of Australia and the new Centre of Excellence for the Australian Almond Industry. “I visited Loxton in August and met with local industry bodies who are keen to band together to use the Centre as a business hub and have encouraged them to further develop their proposal.” Mr Bignell said with the Public Works Committee endorsement achieved, a decision is now expected shortly on the planning approvals for the new building. “This will then enable the competitive tender process to commence and we will be encouraging qualified Riverland builders to put in their bids,” he said. “Refurbishment of the existing centre is also well underway, including repairs and maintenance–providing further local employment opportunities. “With this project we aimed to employ 90 per cent of the contractors from the local region and we are well on track to achieving this target with over 4000 hours of direct employment,” he said. “An important part of this redevelopment has been the revegetation of both the new and existing sites at the Centre. Again we have looked locally to ensure the benefits stay in the region and the plan is for this work to be undertaken by local Aboriginal community members.”

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A proposal to build a $35 million marina development with a ferry service and luxury resort on Kangaroo Island has been welcomed by the State Government. Tourism Minister Leon Bignell said the proposal, which has been granted major development status, includes a 200-bed, four-star hotel on 80 acres of land in American River. As part of the plan, the new ferry terminal would be located at American River Wharf and the nearby marina would have retails shops and restaurants. “The resort would include 160 hotel rooms together with 40 individual villas, two restaurants, bars, a spa, fitness centre, kid’s club, conference centre, an outdoor activity centre, staff accommodation and substantial landscaped grounds,” Mr Bignell said. “Importantly, more than 100 jobs would be created during construction and there will be significant opportunities for the local community through direct ongoing employment and the supply of local fresh produce, food and wine.” The group behind the plan is City and Central Consulting, the Australian affiliate of CCD Hotel and Resorts Ltd and this is its first major venture in South Australia. “The State Government is aggressively chasing major growth in the visitor economy and developments such as this are absolutely critical to increasing employment in our regions. “We already have a high number of Chinese visitors to Kangaroo Island. This proposal, along with other major developments and events across the State, will help us reach our goal of 57,000 Chinese visitors by 2020 and generate a further 10,000 tourism related jobs. “CCD has advised the State Government it wants to promote local service providers, suppliers and tourism businesses, while respecting the pristine environment of Kangaroo Island and incorporating a number of green initiatives. “The project is an excellent boost for the Island.” The proposal still needs to go through a comprehensive consultation process with the local community. Subject to approval, construction would begin early in 2016 with completion in March 2017.

SA BUILDER OC TOBER  – DECEMBER 2015


Master Builder News

SIMON BIRMINGHAM, Senator the Hon

Senator Hon. Simon Birmingham Address to Master Builders Industry Dinner in Adelaide (abridged) Thanks very much for that welcome, and ladies and gentlemen it’s wonderful to be with you all here at the Adelaide Oval, the magnificent Adelaide Oval. It is a great venue indeed to have a gathering of Master Builders, because it is a testament to the fact that you have taken, as an industry, with your skills, with your capabilities, with your sense of innovation, you have taken the most beautiful cricket ground in the world and turned it into an even more beautiful cricket and football stadium. And it’s a real pleasure to be here at this place, where I trust the Adelaide Crows will cause another upset against another West Australian team, just as a certain other South Australian team led against a certain other West Australian team last weekend. I begin by acknowledging a few people here, to of course the leaders of the Master Builders Association - to Trevor Evans, the President; Dan Perkins, the Deputy President who for his sins is a West Coast fan, and I’m happy to wish him well in the finals. As we said at our table before, when it comes to the finals, a West Coast victory at least means a happy Julie Bishop, and a happy Julie Bishop is good news for all of us. Welcome to Wilhelm Harnisch, the CEO; to Tim Mead, the chair of the National Training Advisory Committee; to Richard Bryant, the South Australian President. To my colleagues, Senator Sean Edwards, a great friend and warrior in the Australian Senate, and if only we had six more warriors in the Australian Senate like Sean Edwards, the country’s government would run much more smoothly that it does relying on some of those interesting individuals who occupy the cross benches. To my wonderful friend in the State Parliament Vickie Chapman, the Deputy Liberal Leader; Steven Griffiths and David Pisoni, shadow ministers; to John Darley, it is very good to be able to be with you all. As you heard from North Queensland I had the honour and the pleasure over the last few days of being in the Torres Strait and the Northern Peninsula area of Cape York with the Prime Minister, and it is really an opportunity to see Tony Abbott at his best, at his most committed and his most passionate, when he’s there engaging with those Indigenous communities– pursuing of course the opportunities to lift people out of poverty and to give those remote areas of Australia, and the people who have been here for tens of thousands of years the opportunities to lead the types of lifestyle that so many of us all take for granted. As a government, we have fought very hard to make sure our agenda is singularly focused around the competitiveness of Australia, around how as a country we can best create the opportunity for business growth, and invest through our economic opportunity for businesses to create more jobs for more Australians in the future. That’s why, in terms of competitiveness, we’ve done things like get rid of the carbon tax, reduce taxes to small businesses and micro-businesses, initiate measures that are about trying to reduce some of the cost pressures from government. Because that’s about trying to make Australian business more competitive. It’s why as a government we’re pursued as part of our overall competitiveness agenda, reduction in red tape and reduction in areas of government bureaucracy wherever possible. SA BUILDER OC TOBER  –   D ECEMBER 2015

It’s about trying to make an Australian business more competitive. It’s why we are investing and putting more focus on skills and vocational education and training, as we do through my portfolio, because we recognise that’s an important part of making Australian business as productive as possible, and by being as productive as possible, business can be as competitive as possible. It’s why we have run the largest ever infrastructure projects in the country, and have got the biggest portfolio of spending on infrastructure. Because again, we know that building infrastructure doesn’t just contribute to economic stimulus now and while it’s being built; building effective infrastructure, effective investment, and in the right types of road, port, and airport assets lifts the national productivity. And by lifting the national productivity we again become more competitive as a nation, and better able, in an increasingly global world, to create the types of jobs that sustain the type of prosperity as a country we want. And that will continue to be a real primary focus of our Government. And we recognise that industries like yours, major employers like yours are critical to our success. Our efforts are not about creating jobs from government; our efforts are about trying to create the right environment for you to create jobs. As small, medium, and large businesses, as those who engage contractors, as those who stimulate opportunities for new businesses to grow throughout our economy. My particular role of course in this space is nowadays to focus on education and training and particularly vocational education and training. When the Prime Minister appointed me to the ministry at the end of last year, it was the first dedicated ministry established for vocational education and training, skills and apprenticeships that Australia’s seen since the Howard Government.

19


Master Builder News

My priority is to make sure that we give that focus to the reforms that are required to make our VET sector and to make TAFEs and private training organisations, enterprise based and industry based organisations, operate in a way that is as effective as possible to provide people with skills that, in the true sense of vocational education, equip them directly for jobs and employment in the future. And when it’s done well, when it’s truly integrated with employers who pass on their knowledge and training, then we can have confidence that vocational training does lead to great job outcomes. Because if I look at apprenticeships, the iconic aspect in many ways of the vocational sector, we see that for those who successfully complete their apprenticeship, especially in a trade-based apprenticeship, 90 per cent of people secure employment at the end of that. That’s a figure that almost any other area of investment in training would die for. To see whether it’s university graduates, other sectors of training to have 90 per cent of those who complete actually securing employment in the immediate term after their conclusion. The problem though is that apprenticeship completions have hovered around a 50 per cent mark for far too long. So one of the big reforms we’ve undertaken as a government is establishing a new Australian Apprenticeships Support Network. I t’s been backed up by a major investment in new IT infrastructure to support the national apprenticeship system so that no longer will we need to have those who need apprentices having rooms as large as this filled with boxes full of paper to tick off individually the competencies of somebody on the way through. We’re providing the IT infrastructure and then we’re able to divert the money that used to be spent on paperwork and bureaucracy into providing gateway services at the outset, it will help all of your businesses to make sure you’re getting the right person going into the right apprenticeship and the right business. To make it as I like to say a happy marriage at the outset that we actually provided that upfront counselling service to ensure the apprentice is well matched to the trade and to the employer. But also investing more in mentoring to be available during the life of the apprenticeship so that once again if it’s going off the rails, either from the employer side or the apprentice side, there’s an independent source to be able to step in and to provide assistance in that regard. So the apprenticeship support network is really about trying to lift the completion rates. We had some challenges in commencement rates as well, which I want to ensure we move on to addressing but first and foremost I want to

20

see that the time and effort and money spent on starting people out on their apprenticeship actually gets more of them to conclusion of their apprenticeship through having the right support in the right locations around the country. Commencements are also a challenge, more so in the non-trade apprenticeship space, the traineeship type space but in that area I acknowledge that since the previous government withdrew a number of subsidies and incentives, for the provision of apprenticeships and traineeships we’ve seen a marked decline in commencement numbers and that’s continued as a decline under our government, to a lesser extent that it has continued. Some of that is to do with economic circumstances in different parts of the country but it also is a reality that we need to have a look at what is causing those commencements to go down and in the coming days I’ll be making clear the types of processes we’re going to play out over the next couple of months so that we’re well placed with some recommendations to go into the next Budget cycle and have a look at how we can best and most effectively rebuild that apprenticeship space in terms of commencements supported by our existing initiatives to lift the rate of completions. And it’s really important of course that we succeed in that, not just because it will help more young people, more mature age apprentices secure employment by completing those apprenticeships but because it’s backed up by the type of evidence in your Towards 2020 document and I want to congratulate MBA on its initiative on developing towards 2020. In outlining its passionate interest and engagement in skills and training activities and then identifying the scale of the challenge that lies ahead, the need for 300,000 additional skilled workers by 2020; the recognition that your industry has around concerning trends on the reduction of apprenticeship commencements. At the low levels of female participation and I’m very eager to make sure we work with MBA on whatever the model for apprenticeship reform are over coming months so that we can deliver a system that reverses this decline we’ve seen in commencement numbers. I’m equally going to make sure that when it comes to the content of training, in apprenticeships and in all qualifications of vocational edcation sector that we have training that is as job relevant and industry relevant as possible which is why we’ve re-written the rules around how it is that qualifications will be developed in future. Put in place a new framework led by a new industry, employer-led national committee that has of COAG and states as well as the SA BUILDER OC TOBER  – DECEMBER 2015


Master Builder News Commonwealth Government and will then break down into a whole series of different industry sector committees led by employers, who will be the ones who determine what content, what skillsets, what competencies go into their qualifications in the future. Because it’s my passionate belief that it’s employers who know best what skills they need in their employees, and that’s the view of our government that we want to put engaged employers and employer representatives at the head of the table making the decisions about when training packages should be reviewed, what qualifications should be in training packages, what competencies should be required in those qualifications. This is complemented by significant new investment from a Federal Government perspective in industry and employer-led training. Our Industry Skills Fund is a $664 million Federal Government investment, where we’re supporting employers to make applications for funding for the training they need to be able to grow their business. And it’s flexible; it means that you as builders could be seeking funding to help train people in marketing, or in ancillary or associated aspects of your work around interior design or other aspects, that will help you to diversify or grow your business interest by investing in the skills of some of your employees. And I again encourage all of you to think about how it is you could access those kinds of services and that type of government support to be able to grow your businesses in the future. Overall, I have great faith and confidence in the structure of our vocational training system. Around three million Australians per annum undertake some form of vocational education and training. Only half of those do so with any level of government support. The other half is funded by their employers or out of their own pocket. And as those of you in this room know, there’s no greater vote of confidence in anything than when people are paying for it themselves. So it’s a great vote of confidence that around 1.5 million Australians invest in VET every year because they see direct value in it. But we need to make sure that’s continued, which is why we’re investing and lifting the quality, improving the job relevance, and ultimately having discussions about how the training market can work best. Here in SA we have some real challenges on that front, and I acknowledge the leadership that the MBA has shown in relation to some of those problems and concerns about the changes to the training market in SA, which have seen a dramatic reduction by the South Australian Government in the opportunity for non-TAFE providers to provide training in the construction industry and building industry. I’ll be meeting once again on Monday of next week with stakeholders who are concerned about South Australia’s approach to training, and I’ll continue to talk to the Weatherill Government, and urge them to recognise that employers and students deserve choice in the training provider they access. They deserve to have a market that is actually providing them with the highest quality, the best price, and the greatest outcomes when it comes from training. I close with an invitation to all of you, and that is to think about a rather dry topic, but the federation reform agenda. At present, the Prime Minister is developing a white paper in relation to how the Australian federation works, what the most efficient allocation of responsibilities between the Commonwealth and the states are. And when he met with state premiers and leaders just a few weeks back, one of the striking parts of the communique they issued was a statement having a look at whether vocational education and training should be funded on a consistent national approach rather than a piecemeal state-by-state approach. That was backed up yesterday by the big talkfest think tank

SA BUILDER OC TOBER  –   D ECEMBER 2015

exercise that occurred in Sydney, led by a number of entities, who put a national approach to vocational education and training close to the top of their agenda. So I encourage you as an industry that is so reflective of every corner of this country to think about whether that is ideal, and how that would work. There will be opportunity for comment–as the Federal Government we’re not wedded to any particular outcome from this, aside from an outcome that gives us the best capacity to fund vocational education and training in the future in a way that delivers our country with the skills we need. Because we do know that sectors like yours are willing to invest in skills of your employees, that you’re willing to invest in growing our economy and the competitiveness and productivity of our economy, and as a government we want to get the structures right to help you to achieve that, to the greatest success possible. So again, thank you very much for the thoughtful policy input you provide at so many different levels as an organisation, for the jobs and economic activity you contribute to the country, and for coming here to the wonderful Adelaide Oval in my home city of Adelaide and home state of SA, and wish you every success and pleasure in your discussions, and especially for the opportunity to join tonight and speak with you tonight.

21


22

SA BUILDER OC TOBER – DECEMBER 2015


Sensational stadiums and breathtaking homes:

The best of South Australian building and construction Adelaide Oval, breathtaking homes and cool bars have been recognised in this year’s celebration of the best of South Australian building and construction.

Almost 1000 people celebrated the 2015 Master Builders SA Building Excellence Awards in a “Moulin Rouge” themed evening last Friday. Can-can girls kicked high to open festivities and then chief executive John Stokes and Building Ideas host Nicole Willis, greeted guests in their best Parisian style–winding their way into the packed Convention Centre on elegant bicycles with near-polished French accents. The celebration of artistry continued with the strength and grace of aerial hoop artist Miss Skopalova hanging high above the stage. In a pre-recorded message, Premier Jay Weatherill commended the industry as one of the State’s largest employers, with a promise to help it grow and recover, before handing over to MC Shane Jacobsen to guide the audience through a night fi lled with ready laughter and delight. Master Builders SA then Chief Executive Officer John Stokes said the quality of entries in this year’s awards were a testament to the term “master builder”. “Every one of these award winners and commendations show the skills, knowledge and craftsmanship of the builders behind the project,” he said. “Whether it’s a bar, a stadium or someone’s home, the professionalism shown in every entry is a testament to the calibre of building and construction here in South Australia.” Master Builders SA president Richard Bryant highlighted the industry’s strong capacity to innovate and challenge existing standards, before naming Troy Klemm, of Camporeale & Klemm Built, as the prestigious 2015 Master Builders Young Builder of the Year.

SA BUILDER OC TOBER – DECEMBER 2015

Metricon Homes was named Display Home Builder of the Year, with judges noting the excellent detailing and care taken $350,000 to $500,000 with clients in display homes for the category and those more than $500,000. The collaborative approach and “stunning master-build” by Alan Sheppard Constructions also delivered to the fi rm the title of Contract Home Builder of the Year. Family-owned Mossop Construction+Interiors won five awards including Excellence in Retirement Living and Excellence in Medium Density builds –scoring consistently highly in its entries to be named Commercial Builder of the Year. The exceptional redevelopment of Adelaide Oval won more plaudits, with Lendlease winning the award for Excellence in a Commercial/Industrial Building over $100 million for the project and South Australia’s Bianco Precast named for its Excellence in Concrete and Concrete Finishing for its “world class” finish. The revitalisation of Adelaide was also recognised in the awards, with the exceptional fi nishes for rooftop bar 2KW delivered by Cook Building and Development in difficult construction conditions garnering the award for Excellence in a Commercial/Industry Building $2 million to $5 million, and Schiavello Construction’s fitout of the Sean’s Kitchen winning the award for Excellence in a Commercial up to $5 million.

23


Best of South Australian Building and Construction Awards 2015

Master Builder of the Year–Contract Home Builder 2015

Master Builder Overall Winners

Master Builder of the Year–Commercial Builder 2015

WINNER ALAN SHEPPARD CONSTRUCTIONS PTY LTD

WINNER MOSSOP CONSTRUCTION+INTERIORS

Sponsored By: South Australian Government The Hon. Kyam Maher MLC and Alan Sheppard

Sponsored By: South Australian Government Aaron Mossop, The Hon. Kyam Maher MLC, John Mossop, Neil Mossop and Grant Mossop

Alan Sheppard Constructions demonstrated what a true Master Builder stands for. His personal building prowess and expertise shon through in all of his projects and his builder client relationships were outstanding every time. His selection of trades people and his long standing relationships with them, is testament to how he runs his business and why he excels every time.

Master Builder of the Year–Specialist Contractor 2015

In the categories they entered, Mossop Construction+Interiors projects have stood out every time. Their builder and client relationships are of a high level and it is evident that they strove to achieve building excellence at every opportunity. Their consistent level of build quality and their systems, procedures and outstanding safety systems, has made them a worthy winner of this very prestigious building excellence award.

Master Builder of the Year–Display Home Builder 2015

WINNER SA CONSTRUCT PTY LTD

WINNER METRICON HOMES PTY LTD

Sponsored By: South Australian Government Jarrod Morgan and The Hon. Kyam Maher MLC

Sponsored By: South Australian Government The Hon. Kyam Maher MLC and Neil Bisset

SA Construct is to be commended on their outstanding attention to detail and precise workmanship. Their ability to add technical value to projects and clients’ vision has resulted in SA Construct being well respected by all stakeholders. Their services to manage and coordinate all aspects associated with their area of speciality, confirms them as a worthy recipient of this award.

Metricon Homes stood out in every category they entered. They demonstrated excellent detailing and fi nishing across all of their projects and their construction techniques were very impressive. Their ability to deliver their projects on or ahead of time, as well as their professional attitude confi rm they are worthy winners of this highly sought after award.

24

SA BUILDER OC TOBER – DECEMBER 2015


Master Builders –Young Builder of the Year 2015 WINNER

TROY KLEMM–CAMPOREALE & KLEMM BUILT Elisa Gallichio of CBUS and Troy Klemm Troy Klemm is Director in charge of Camporeale & Klemm Built a boutique building company specialising in custom built homes and additions. He established his own business in 2012 and has completed over 25 projects to date. In that relatively short time, he has won several Master Builders Association building excellence awards and this year the prestigious title of Young Master Builder of the Year. He completed a Bachelor of Construction Management and an Economics Degree with Honours in 1999 at the University of South Australia and quickly gained full time employment with Alf Russo Constructions. From there he worked for Scott Salisbury Homes for three years as a New Homes Supervisor before going on to establish his own award winning business. Troy is a talented and dedicated Master Builder who is responsible for estimating, liaising with designers, administration, cost control, supervising projects under construction as well as work health and safety. He is ambitious and strives to achieve excellence on all projects he works on. The judges were impressed with his achievements to date and noted that Troy is a builder who will definitely go on to create many exceptional building projects. His interpersonal skills are excellent and his passion for the building industry is immediately obvious.

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SA BUILDER OC TOBER – DECEMBER 2015

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More about the

Building Excellence Awards Winners

The exceptional redevelopment of Adelaide Oval has won more plaudits, headlining Master Builders SA’s Building Excellence Awards for 2015. Lendlease won Excellence in a Commercial/Industrial Building over $100 million for the project and South Australia’s Bianco Precast won Excellence in Concrete and Concrete Finishing for its ‘world class’ finish. The revitalisation of Adelaide was also recognised in the awards, with the exceptional finishes for rooftop bar 2KW delivered by Cook Building and Development in difficult construction conditions garnering the award for Excellence in a Commercial/Industry Building $2 million to $5 million, and Schiavello Construction’s fitout of the Sean’s Kitchen winning the award for Excellence in a Commercial Refurbishment/ Redevelopment up to $5 million. South Australia’s expertise in civil construction was also at the fore, delivering an award for Excellence in Civil/Engineering Construction to Unique Urban Built for its work on the Adelaide Aquatic Centre Upgrade, while specialist contractor Envirogen Industrial Services won an award for Excellence in Services for its excavation work around existing services and without stopping traffic flow while working on the Southern Expressway Duplication. Metricon Homes was named Display Home Builder of the Year, with judges noting the excellent detailing and care taken with clients in display homes for the $350,000 to $500,000 category and those more than $500,000. The collaborative approach and “stunning master-build” by Alan Sheppard Constructions also delivered to the firm the title of Contract Home Builder of the Year. Master Builders SA then Chief Executive Officer, John Stokes said the quality of residential, industrial and commercial building in this year’s awards were a testament to the term “master builder”. “Every one of these award winners and commendations show the skills, knowledge and craftsmanship of the builders behind the project,” he said. “Whether it’s a bar, a stadium or someone’s home, the professionalism shown in every entry is a testament to the calibre of building and construction here in South Australia.”

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The annual awards, announced tonight at the Adelaide Convention Centre with almost 1000 guests, revealed 2015’s headline winners: Master Builder of the Year Specialist Contractor 2015 SA Construct Master Builder of the Year Display Home Builder 2015 Metricon Homes Master Builder of the Year Contract Home Builder 2015 Alan Sheppard Constructions Master Builder of the Year Commercial Builder 2015 Mossop Construction+Interiors Master Builder of the Year Young Builder 2015 Troy Klemm, Camporeale & Klemm Built Mr Stokes said the award winners had excelled in a field fi lled with a greater variety of entrants than ever before. “We limited the number of entries per category this year and saw the success of that: entries from some of South Australia’s best boutique builders and specialist contractors that challenged everyone to do better,” he said. “This shows the true excellence of South Australia’s Master Builders.”

SA BUILDER OC TOBER – DECEMBER 2015


Residential Winners

Excellence in a Contract Home $300,000 to $500,000

Excellence in a Contract Home $500,000 to $700,000

Winner: South Coast Constructions Pty Ltd Sponsored by: Master Builders South Australia Sean Richter of MBASA Legal and Matt Parker

Winner: Finesse Built Sponsored by: Rylock Windows & Doors Alison Cook of Rylock Windows & Doors and Matt Beckwith

Excellence in a Contract Home $700k to $1Million

Excellence in a Contract Home $1Million to $1.5Million

Contract Home of the Year over $1.5Million

Winner: Alan Sheppard Constructions Pty Ltd Sponsored by: Colorbond Monica Maloney of Colorbond and Alan Sheppard

Winner: Clairville Homes Sponsored by: Print Solutions Chris Doak of Print Solutions and Joe Totani

Winner: Rivergum Homes Sponsored by: Sunday Mail Trudy Oram of Sunday Mail, Josephine Lonard and Victor Said

Excellence in a Display Home up to $200,000

Excellence in a Display Home $200,000 to $250,000

Excellence in a Display Home $350,000 to $500,000

Winner: Sterling Homes Sponsored by: Truecore Monica Maloney of Truecore, Robert Argenio and Tony Siv

Winner: Format Homes Sponsored by: CSR Sue Wundenberg of CSR, Marco Formato

Winner: Metricon Homes Pty Ltd Sponsored by: Hanson Keith George of Hanson and Neil Bisset

Excellence in a Display Home $500,000

Excellence in a Renovation or Addition up to $200,000

Excellence in a Renovation or Addition $200,000 to $400,000

Winner: Thorne Constructions Sponsored by: Construction Industry Training Board Nick Thorne, Steve Larkins of CITB and Neil Thorne

Winner: Scott Salisbury Homes Sponsored by: Master Builders South Australia Ian Markos of MBASA and Scott Salisbury

Winner: Metricon Homes Pty Ltd Sponsored by: Sunday Mail Elvi Franzin, Sunday Mail and Neil Bisset

SA BUILDER OC TOBER – DECEMBER 2015

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Excellence in a Renovation or Addition $400,000 to $600,000

Excellence in a Renovation or Addition $600,000 to $1Million

Excellence in a Renovation or Addition over $1Million

Winner: Urban Habitats Sponsored by: SA Builder Jock Merrigan of Urban Habitats, John Stokes of MBASA and Josh Semmler of Urban Habitats

Winner: Kreca Renovations Pty Ltd Sponsored by: Master Builders South Australia Elton Kreca, Ian Markos of MBASA, Gentjan Kreca and Julian Newton

Winner: Olde World Homes Sponsored by: Master Builders South Australia David Thompson of MBASA and Peter Spajic

Excellence in Medium Density up to 5 Dwellings

Excellence in Medium Density over 5 Dwellings

Excellence in Environmental & Sustainable Construction - Residential

Winner: Mossop Construction+Interiors Sponsored by: Master Builders Insurance Services Paul Dawson, Mark Lukowicz of MBASA and Ian Reeve

Winner: Mossop Construction+Interiors Sponsored by: Origin Bryan Hegarty of Origin, Andrew McKay

Winner: Mossop Construction+Interiors Sponsored by: Resourceco Janith Balon, Hannah Davis of Resourceco and Tony Leonello

Commercial Winners

Excellence in Bathrooms

Excellence in Kitchens

Winner: Alexis Constructions Sponsored by: GWA Bathrooms & Kitchens Alexis Bunagiar,Jason Howse of GWA Bathrooms & Kitchens

Winner: Thorne Constructions Pty Ltd Sponsored by: GWA Bathrooms & Kitchens Neil Thorne and Jason Howse of GWA Kitchens & Bathrooms

Excellence in Commercial/Industrial Building up to $1Million

Excellence in Commercial/Industrial Building $1 Million to $2 Million

Excellence in Commercial/Industrial Building $2 Million to $5 Million

Winner: Kauppila Pty Ltd Sponsored by: PB Visual Communications Paul Montesi of PB Visual Communications and Gordon Black

Winner: Pascale Construction Sponsored by: Rylock Windows & Doors Stuart Yates of Rylock Windows & Doors and David Harris

Winner: Cook Building & Development Pty Ltd Sponsored by: National Australia Bank Chris Hansen, Joe Paporella of NAB and Tom Broderick

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SA BUILDER OC TOBER – DECEMBER 2015


Excellence in Commercial/Industrial Building $5 Million to $10 Million

Excellence in Commercial/Industrial Building $10 Million to $20 Million

Excellence in a Commercial / Industrial Building $20 Million to $50 Million

Winner: Pascale Construction Sponsored by: Hanson Keith George of Hanson and Richard Zanchetta

Winner: Sarah Constructions Pty Ltd Sponsored by: Wombat Studios John Bridges of Wombat Studios and Anthony Carbone

Winner: Sarah Constructions Pty Ltd Sponsored by: Laser 3D Russell Hack of Laser 3D and Chris Dunne

Excellence in a Commercial/Industrial Building $50 Million to $100 Million

Excellence in a Commercial/Industrial Building over $100 Million-Landmark Project

Excellence in a Commercial Fit-Out

Winner: Lendlease Sponsored by: National Australia Bank Joe Paparella of NAB and Guy Fisher

Winner: Lendlease Sponsored by: CBUS Lisa Gallichio of CBUS, Rebecca Pierotti, Stephen Blewett, David Ising and Geoff Hayman

Winner: Kennett Pty Ltd Sponsored by: Channel 9 Paul Jennings and Alexa Borak of Channel 9

Excellence in Civil/Engineering Construction

Excellence in a Commercial Refurbishment/Redevelopment up to $5 Million

Excellence in a Commercial Refurbishment/Redevelopment over $5 Million

Winner: Schiavello Construction (SA) Pty Ltd Sponsored by: TAV Productions Ian Tan, Aaron Morrison, Sasha Frost, Mark Manetti of TAV Productions, Luke Steel, Tony Tsakalos and Richard Collins

Winner: Built Environs Pty Ltd Sponsored by: Master Builders Australia Damien Mutton, Wilhelm Harnisch of MBAInc and Tony Jachmann

Excellence in Retirement Living/Aged Care

Excellence in Cladding

Excellence in Brickwork

Winner: SA Construct Pty Ltd Sponsored by: Master Builders South Australia Mark Elliot of MBASA and Jarrod Morgan

Winner: Pascale Construction Sponsored by: CSR Fred Pascale and Bruno Albanese of CSR

Winner: Mossop Construction+Interiors Sponsored by: Origin Derek Tazzar, Bryan Hegarty of Origin and Yiming Fei

SA BUILDER OC TOBER – DECEMBER 2015

Winner: Unique Urban Built Pty Ltd Sponsored by: Employers Mutual Limited Joe Franze and Alex Flint of Employer Mutual Limited

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Excellence in Services Winner: Envirogen Industrial Services Sponsored by: Master Builders South Australia David Thompson of MBASA and Robert Feleppa

Excellence in Concrete and Concrete Finishing

Excellence in Affordable and Public Housing

Winner: Bianco Precast Sponsored by: Construction Apprenticeship Mentoring Scheme David Thompson of MBASA and Michael Floreani

Winner: Hindmarsh Construction Australia Pty Ltd Sponsored by: Master Builder South Australia Joe Goetze, Mark Lukowicz of MBASA, Rhiannon Haddow and Marcus Anderson

Commendations Residential

Excellence in Environmental & Sustainable Construction-Commercial

Excellence in Work Health and Safety

Winner: Kauppila Pty Ltd Sponsored by: Resourceco Hannah Davis of Resourceco and Gordon Black

Winner: Mossop Construction+Interiors Sponsored by: Employers Mutual Limited Ian Reeve, Alex Flint of Employers Mutual Limited and Darcy Rayner

Excellence in a Contract Home $500,000 to $700,000

Excellence in a Contract Home $700k to $1Million

Excellence in a Contract Home $1Million to $1.5Million

Winner: Camporeale & Klemm Built Project: Glen Osmond Alison Cook of Rylock Windows and Doors and Troy Klemm

Winner: Exterior Dimensions Project: Brighton Monica Maloney of Colorbond and Russell Smith

Winner: Ikon Projects Project: Hayborough

Contract Home of the Year over $1.5Million

Excellence in a Display Home over $500,000

Excellence in a Renovation or Addition $400,000 to $600,000

Winner: Alan Sheppard Constructions Pty Ltd Project: Beaumont Trudy Oram of Sunday Mail and Alan Sheppard

Winner: South Coast Constructions Pty Ltd Project: Hayborough Elvi Franzin of Sunday Mail and Matt Parker

Winner: Alexis Constructions Project: Prospect John Stokes of MBASA and Alexis Buhagiar

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SA BUILDER OC TOBER – DECEMBER 2015


Commendations Commercial

Excellence in Commercial/Industrial Building $2 Million to $5 Million

Excellence in a Commercial Fit-Out

Winner: Partek Construction & Interiors Sponsored by: NAB Joe Paparella of NAB and Garth Hall

Winner: Cook Building & Development Pty Ltd Sponsored by: Channel 9 Alexa Borak of Channel 9, Iain Woollaston, Emma George and Neil McCulloch

Excellence in a Commercial Refurbishment/Redevelopment over

Excellence in Civil/Engineering Construction

Excellence in Retirement Living/Aged Care

$5 Million

Winner: Bianco Precast Sponsored by: Employers Mutual Limited Alex Flint of Employers Mutal Limited and Jamie Brown

Winner: Kennett Pty Ltd Sponsored by: Origin Bryan Hegarty of Origin and Duncan Forbes-White

Winner: Badge Sponsored by: Master Builders South Australia Wilhelm Harnisch of MBAInc and Bradley Watts

Excellence in Cladding Winner: Klek Roofing & Cladding Pty Ltd Sponsored by: Master Builders South Australia Mark Elliot of MBASA, James Hisgrove and Mik Kirasic

SA BUILDER OC TOBER – DECEMBER 2015

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Double trophies for KI builder

Kangaroo Island builders Luke and Sharon Kauppila have backed up last year’s win at the Masters’ Builders Association of SA Building Excellence Awards, taking home two trophies against impressive competition this year. Kauppila Pty Ltd won two accolades for its Little Sahara interpretive centre project– Excellence in Commercial/Industrial Building up to $1 million and Excellence in Environmental and Sustainable Construction– Commercial. The Little Sahara project was built for KI Outdoor Action to a design by renowned architect Max Pritchard. Kauppila Pty Ltd won at last year’s awards for Excellence in Environmental and Sustainable Construction–Residential. “There is no doubt that our win in the 2014 MBA of SA awards, gave us the opportunity to tender for the Little Sahara project. The owners had all but closed the tenders for this this job, but when they saw our story in The Islander newspaper they phoned and asked us if we would be interested. It was a real eye opener

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to realise that even on Kangaroo Island our marketing wasn’t hitting the mark. Winning the first award has helped to promote our business, highlighting the quality and excellence that we strive for in both residential and commercial construction” Ms Kauppila said. “The site at Little Sahara provided some unique challenges for us and our sub-contractors. We were extremely conscious of creating a work site with minimal impacts on the environment as well as maintaining the site so that this popular tourist venue could continue to operate though its busy season. It was satisfying to bring Max’s vision to life and to contribute to a quality ecotourism development on the island,” she said. Kauppila builders are an advocate for the building and construction industry on Kangaroo Island, recognising the importance of using local, skilled trades and suppliers. “Keeping the money invested in Kangaroo Island, on Kangaroo Island, is very important to our community,” Ms Kauppila said. With possible upcoming infrastructure developments on Kangaroo Island, the Kauppila’s believe there are the skills and the builders locally to tender for some of these bigger commercial works. “It is imperative that these opportunities are provided within the tendering process and that builders step up to the mark.” Ms Kauppila is also the chair of Business KI. “We are positive about the future and want local businesses to be given a go–If winning these awards helps to highlight this for the local building and construction industry then it is a win-win for everyone.” If you would like to fi nd out more about Kauppila Pty Ltd and their projects on Kangaroo Island you can visit their website www.kauppila.com.au

SA BUILDER OC TOBER – DECEMBER 2015


Training DAVID THOMPSON, Director of Training

MBA response to Legislative Council Select Committee on Skills for All Program

The Legislative Council appointed members to a Select Committee to inquire into and report on matters relating to the State Government’s Skills for All Program, the replacement WorkReady Program, and the impact on private and public sector training resulting from those programs and the transition between them. Master Builders SA is a Registered Training Organisation (RTO) and has been a recipient of funding for many of its core training programs relating to entry skills and career-long upskilling for the building and construction sector. These programs are highly regarded by industry, trainees and the broader training sector, both for their ability to provide industry best-practice knowledge to those seeking to enter the industry, and for their ability to connect trainees to potential employers. To this end the Master Builders SA would appreciate any invitation to give oral evidence to the Committee as we consider our training programs to be among the best in South Australia and our training division is, on many measures, one of the largest in the State.

Program’s impact on viability of RTOs The abrupt withdrawal of funding under the Skills for All Program was accompanied by claims by some operators that the change of model would likely lead to job losses and the collapse of smaller providers.

SA BUILDER OC TOBER  –   D ECEMBER 2015

It is tempting to therefore conclude that those entities were unviable and/or improperly relying on Skills for All funding and, therefore, the industry might be better served without such operators. However, this conclusion risks confusing an abrupt change of business model with underlying viability or efficiency as in many cases, providers would be likely to transform their business model to one that is not reliant on Skills for All funding. However, any reasonable approach to this issue would conclude that changing a business model requires more than one weeks’ notice. MBA’s submission to Skills Minister Gail Gago, called for a steady transition between models over two or more years to mitigate the impact of this policy and funding decision on private sector jobs. This approach was rejected. Much of our specialised training is on a user-pays basis, with employers and students alike investing in training programs that are backed by industry on the understanding that they provide access to industry-best practice. The four programs to which Skills for All funding applies remain viable – as does Master Builders SA and its training division–but the move to full user pays means those seeking to enter the sector as a career will have to pay approximately three to four times as much as their previous investment.

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Training As a recipient of Government training funding across levels of Government, Master Builders SA has developed administrative systems that fully comply with our contractual obligations for: • 1 Certificate IV in Building and Construction (Building) (CPC40110) • Certificate IV in Building and Construction (Site Management) (CPC40508) • Certificate IV in Building & Construction (Estimating) (CPC40308) • Diploma of Building and Construction (Building) (CPC50210) • Diploma of Building and Construction (Management) (CPC50308) Our full compliance with all audits attests to the organisation’s transparency and efficiency in training delivery and contract management. There is a widely held belief that the principle of contestability that underlies the Skills for All program has been dismissed under the new funding arrangements. Whereas Skills for All allowed funding that recognised competition by allowing all providers to seek that same funding–and in turn deliver a better outcome for taxpayers because of the private sector’s underlying efficiency–WorkReady actively penalises taxpayers by excluding private sector RTOs. There is a very real risk that the perception of the “capacity, transparency, efficiency and viability” of South Australian RTOs has been adversely impacted by the poor practices of some providers. Master Builders SA believes this has resulted in a policy decision that effectively costs taxpayers more and removes willing students from industry-best and industry-lead practices as taught by Master Builders SA and similar bodies.

Meeting future training, employment needs Members of Master Builders SA have expressly recognised the importance of industry-based training and, conversely, the lack of TAFE SA to meet those standards. Our trainers engage in Master Builders SA training to give something back to the industry, often working on sites throughout Adelaide during the day and then developing the next generation of builders at night. This focus on industry practices ensures trainees are receiving the very latest knowledge as it applies in the field that day. As a result, our training is able to respond to innovations and practices as it is reflected on worksites and offices, and with an eye on future developments. This also allows our trainees to benefit from training that responds rapidly to the changing environment. Former Hansen Yuncken Chairman and Chief Executive and former Master Builders President Peter Kennedy was clear in his assessment. “The education TAFE is offering is not in general really working for the construction industry. It is out of date because it is not targeted to the way construction work is currently being carried out and it isn’t creating training and education for construction workers which is specific to the methods of construction and material currently being used by the construction industry. “TAFE is out of date and they are spending money on training which is not really of value to the industry so people can come to work prepared with the skills they need.” The managing director of a fast-growing specialist contractor that is now branching interstate was clearer in his assessment: “No employer will send their people there (to TAFE). It’s a great building, it’s fantastic, but the trainers there haven’t worked in industry for more than 10 years. “I don’t want someone working for me that learns how things were 10 years ago.” Correspondence from the office of Skills Minister Gail Gago refers to modelling by the Training and Skills Commission (TASC) suggesting demand for VET level qualifications for Architectural, Building and

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Surveying Technicians is satisfied by the current pipeline, including the 2450 training accounts currently open for these occupations. The Minister also notes the rapid take-up of these training opportunities through Master Builders SA. We believe the rapid response we experienced to news of the change of funding uncovered pent-up demand for these qualifications as administered by a body connected to the underlying industry. As TASC, does not match the demand Master Builders SA is experiencing. It might be suggested that any advice that relies upon that modelling should therefore be reviewed. The building and construction industry is acknowledged as being a sector with a relatively high-risk profile, as has been expressly recognised by the Attorney General as a driving force in his fundamental reform of SafeWork SA. Master Builders SA is therefore of the opinion that the connection between industry and training for the industry is, at its heart, vital in the interests of safety. Industry expects a certain standard of training to fulfil its needs for safety as well as workmanship. There is now an essential concern that the lack of current training offered by TAFE SA will fulfil neither of these objectives. The Skills for All Program was aimed at improving employment outcomes for students. Recent data from the National Centre for Vocational Education Research (NCVER) 6 shows that private sector providers such as Master Builders SA consistently achieved this outcome for students previously not employed at a better rate than students at TAFE SA. Additionally, students clearly rated private sector providers as better achieving the main reason for undertaking the training when compared to TAFE SA. Although TAFE SA performed better in terms of providing students with higher skills, those students coming to Master Builders SA are seeking to build and formalise skills currently used within existing employment. In other words, these are the skills that employers need. This ensures that graduates of Master Builders SA training are highly likely to remain employed for the long term, thus achieving a more sustainable employment outcome. Master Builders SA believes this is a highly attractive attribute of our training, particularly in 5 Attorney General’s Department, “Transforming Work Health and Safety Performance”. Master Builders SA believes it has already improved the lives of the 257 graduates of the building and construction qualifications funded through Skills for All, and is confident of doing the same for the more than 1000 actively engaged students yet to complete the studies that will give them a career, not just a qualification. We will continue to support the industry through our fee-for-service specialty education such as Safely Working at Heights and Electrical Power Tool Safety, courses undertaken by almost 2500 students last year to provide the skills they need to operate safely in what can be a dangerous environment. Master Builders SA also notes that Skills Minister Gail Gago has confirmed in Parliament that the primary focus of this policy change is to guarantee student enrolments for TAFE SA. This implies that the policy’s impact on student access to industry training, opportunities and support, its relative drain on taxpayer funds compared to private sector solutions and the likelihood of private sector jobs losses are secondary concerns.

Manner and extent of consultation Master Builders acknowledge the initial consultation with industry over the funding and training needs encapsulated in the Skills for All Program was extensive. This created a positive and constructive atmosphere that allowed all parties to share information in the interests of achieving the best training outcomes for South Australians. Unfortunately, the goodwill created through this process was damaged by the lack of further consultation over the industry impacts of the Skills Minister’s decision to change the funding model. Whereas SA BUILDER OC TOBER  – DECEMBER 2015


Training round tables assisted in the development of the policy, participants were informed via email with one week’s notice of the demise of the policy. The Minister was unable to accept appointments for some time after this notice due to a prior appointment to join a trade delegation to China, leaving the day after the email notification was sent. MBASA is an active participant in policy debate on a number of fronts, and has publicly commended the State Government for its full, transparent and thorough consultation over issues including the reform of SafeWork SA and the reform of the planning sector. Consultation over this fundamental change of policy fell short of the standard set in other policy areas. The fact that the Department of State Development sought Crown Law advice about competition issues concerning TAFE SA in June 2014 raises the prospect that consultation subsequently undertaken was not undertaken in good faith. Master Builders SA would obviously be disappointed if this were the case.

Impact on South Australian apprenticeships South Australia’s building and construction industry is focused on the development and transfer of skills into a life-long career. It is consistently among the leading sectors when it comes to training and apprentices and last year provided new apprentice places for more young workers than the Northern Territory, ACT and Tasmania combined. Master Builders SA is a significant part of this commitment. Unfortunately apprentice numbers have been falling over successive years as a result of a number of factors including South Australia’s slowing construction industry and the rise in the number of mature-age apprentices Skills for All funding provided a means of levelling the field between mature-age and entry-age apprentices as ‘skilling up’ became a means of transitioning South Australia’s ageing workforce. The removal of this funding may indeed see another shift towards employment of younger unskilled workers at the expense of older workers. Given South Australia’s challenges with transitioning manufacturing workers into new roles, this lack of support may pose a macroeconomic challenge–and opportunity – that is yet to be appreciated by the State Government.

SA BUILDER OC TOBER  –   D ECEMBER 2015

Master Builders SA has always viewed apprenticeships as the start of a career within South Australia’s building, construction and property sector. Although our apprenticeship program is not reliant upon Skills for All funding, its removal makes the development of a career pathway more challenging. Given existing structural challenges for the South Australian economy, the decision to impose this abrupt shift of policy and funding position upon private RTOs may indeed trigger broader challenges beyond the need to financially support TAFE SA. It may flow on to those seeking to reskill in the wake of previous collapses.

Impact on training opportunities Senior industry leaders have condemned the decision to change funding models for its likely impact on the building and construction sector, largely based on TAFE SA’s poor reputation in the field. At its most extreme, this may result in safety issues being raised. At a bare minimum, the changeover is likely to see the rise of a further distinction in employability between graduates of TAFE SA–whose access to subsidies will fund those most needing of financial support–and graduates of industry-based associations such as Master Builders SA–whose employers will pay more but will invest in the futures of their employees. The introduction of a policy that dismissed the notion of competitive equality effectively also dismisses the notion of choice within South Australia’s training sector. Any person seeking training in a sector will have to pay three times as much to access training through a private provider, and taxpayers are effectively paying almost three times as much for a single training position that industry has no connection to. Master Builders SA therefore believes the impact on training opportunities, choice and quality in South Australia as a result of the changes to subsidised funding has been significantly adversely affected. The decision will ultimately disadvantage students, industry and taxpayers.

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Finance PETER JONES, Chief Economist

Investors remain dominant in housing market The latest data for July 2015 shows that investors continue to drive growth in housing finance for new dwellings. “Growth in owner-occupied finance for new housing continues to slow, while investor finance for new housing remains strong,” Peter Jones said. “Housing continues to be the key player in the economy’s growth story and Master Builders calls on authorities to be careful in implementing so called ‘macro prudential’ measures as they attempt to manage risks attached to rapid house price inflation, predominantly in Sydney,” he said.

“Not only that, but we need a long and strong phase of residential building to address the massive shortfall in new housing–we are not there yet,” Peter Jones said. “A substantial increase in the new housing supply for owner-occupiers is also what’s needed to tackle housing affordability issues, particularly in the Sydney market. Mooted tax changes, such as increasing the GST is not the answer as this would hit first home buyers and add a $5 billion blow to affordability,” Peter Jones said.

PETER JONES, Chief Economist

Approvals point to a strong pipeline of work Master Builders Australia welcomes the increase in approvals for the building of new homes of 4.2 per cent seasonally adjusted in July 2015. “The rise in dwelling units approved will add further to strength to the pipeline of work yet to be done by residential builders with 223,000 dwellings approved in the 12 months to July,” Peter Jones said. “The volatile high rise apartment sector bounced back by 6.1 per cent offsetting a fall of three per cent in detached housing approvals as the mature stage of the cycle unfolds,” he said.

“Meanwhile, the value of alterations and additions work continues to accelerate, foreshadowing that it will take over as the driver of overall growth in the residential building sector. Although in seasonally adjusted terms approvals fell in July, comparing the three months to July to same period last year, the value of approvals is up 14.3 per cent,” Peter Jones said.

PETER JONES, Chief Economist

Non- residential construction back in negative territory Conditions in the commercial construction sector have fallen back into negative territory according to the latest Master Builders National Survey of Building and Construction. “Despite earlier optimism, the latest survey shows that the anticipated recovery in commercial construction has failed to materialise,” Peter Jones said. “In the June quarter the index measuring current conditions in the non-residential building sector fell to 46.1 which has reversed

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the confidence present in the December 2014 and March 2015 quarters,” he said. “The index measuring expectations about future activity also dropped back for the second successive quarter as caution about the wider economy and fragile business confidence kept a lid on investment, ” Peter Jones said. The National Survey of Building and Construction is available on the website at mbasa.com.au

SA BUILDER OC TOBER  – DECEMBER 2015


Images: courtesy Gold Coast Tourism

BUILDING AUSTRALIA Master Builders National Conference Jupiters, Gold Coast,12-14 November 2015

®

Register Early and Save $200 The Master Builders biennial National Conference is heading to the Gold Coast in November, for what will undoubtedly be the industry event of the year once again. ‘Building Australia’ focuses on assisting members to make informed decisions in continuing to grow their business whilst developing and maintaining strong leadership attributes within their business ethos. The lineup of high profile speakers includes Olympic Gold Medalist, Alisa Camplin OAM and Chris Richardson of Deloitte Access Economics. The site tour of the XXI Commonwealth Games Infrastructure offers a unique opportunity to inspect facilities currently under construction. The program includes a balance of business sessions and social activities — something for everyone! Early Bird is now open. Save $200 on the standard rate by registering early! www.masterbuilders.com.au/Events/national-conference The Master Builders Excellence in Building and 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. We look forward to seeing you there!

PLATINUM SPONSOR


Finance

Salary Sacrifice CASE STUDY

Steve earns $90,000 before tax, excluding his employer’s super contribution. If Steve decides to redirect $10,000 of his pay into salary sacrifice super contributions, he will save $2,400 in tax, with the extra money going into his super fund. Steve’s boost

Does nothing

Salary Sacrifice $10,000

Annual salary

$90,000

$80,000

Income tax paid

$23,047

$19,147

Take home pay

$66,953

$60,853

Extra money into super

$0

$8,500

Net benefit

$66,953

$69,353

with salary sacrifice steve is $2,400 bETTEr off Assumptions: Figures used above are estimates only, and are taxed at 2015/16 income tax rates including the Medicare Levy of 2%. Note that the $10,000 super contribution attracts a 15% contribution tax, therefore the total amount of extra money into super is $8,500: Source – Moneysmart. This information is of a general nature. It doesn’t take into account your specific needs, so you should look at your own financial position, objectives and requirements and seek tax advice before making any financial decisions. Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you. Call 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

Have Your Business Seen In 2016 Secure your spot today in the upcoming 2016 Master Builders South Australia Journals and Awards publications. CO RS DE IL BU

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SA BUILDER OC TOBER –DECEMBER 2015


Legal DEPUTY PREMIER JOHN RAU, Minister for Planning, Minister for Housing and Urban Development

Planning for the future Proposed changes to the state’s planning legislation will make the system more responsive to community concerns, easier to understand and will introduce greater integrity initiatives to better safeguard the system. Planning Minister John Rau said a feature of the new legislation was the establishment of a new State Planning Commission. “Under the new legislation we will have more certainty and consistency through the establishment of a peak advisory and assessment body, the State Planning Commission,” he said. “The Commission will streamline the current system and be responsible for assessing significant developments.” Mr Rau said the new legislation also takes elected councillors and the Planning Minister out of high-risk activities by introducing greater transparency and independence in assessment. “Decisions about land releases and new developments on the outer fringe of the current city can cost future taxpayers tens of millions of dollars,” he said. “The legislation provides for environment and food protection areas. Any rezone for residential purposes within that zone will need to be approved by the Parliament. “These decisions are bigger than the Minister of the day alone should determine.

SA BUILDER OC TOBER  –   D ECEMBER 2015

“Local council elected representatives will also no longer be involved in merit based approvals for developments in their areas.” Mr Rau also emphasised the importance of high quality design. “Infill development needs to fit into the existing character of an area, and needs to be of a high design quality,” he said. “The Bill will enable the establishment of design standards for the public realm and infrastructure– a leading reform on the national stage. “The State’s current extensive zoning requirements will be replaced with a consolidated new set of planning rules with quality design at their centre.” Mr Rau also released a planning framework document: Renewing our Urban Future–Unlocking South Australia’s Potential. “This document sets out the Government’s vision for delivering better cities, towns and regions and provides context for a number of important planning initiatives that are being rolled out over coming months,” he said. “It makes the case for focusing more on mixed-use urban infill and better connection between people and places, attracting new investment.”

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Legal

SEAN RICHTER, MBSA Legal Director

The Return To Work Act 2015–is it a win for employers? Or is it an each way bet? The Return to Work Act 2015 has now been operational for 3 months. During this period, much time and effort has been spent in finalising the claims, which still existed under the old Act. At the same time there have been a number of new developments, which have been very pleasing to see. Under the previous legislation, one area which frustrated employers, were claims relating to the ‘aggravation, acceleration or exacerbation of deterioration or recurrence of a prior injury or disease.’ These claims were ‘secondary’ claims under the old Act. For an injury that was a secondary injury or a disease to be compensable it must have: • arisen out of employment; or, • arisen in the course of employment and the employment contributed to the injury. These words ‘contributed to the injury’ were the gateway for a significant number of claims where present work really had very little to do with either the onset, or the development of an injury or disease. The cases in which work was found to have ‘“contributed to the injury” ranged from a computer helpdesk operator who died at home from a stroke, to a worker with a late sequel of severe degenerative spinal disease, and a teacher who had an unexplained heart attack on his first day of teaching a new class. In all of those cases, work was found to have “contributed to the injury or disease” but only to the smallest of percentages. That smallest of contribution was enough under the Workers’ Rehabilitation and Compensation Act 1986, for a secondary injury or disease to be compensable. While this meant that a number of claims with a very limited work connection were accepted by the Corporation, there was an advantage to employers that if a claim could be classified as a “secondary injury” the claim did not affect the premium calculation for the employer. The Return to Work Act 2015 incorporates a much more difficult test for these types of injury or disease. Under Section 7 of the Return to Work Act 2015, for an injury which is an ‘aggravation, acceleration or exacerbation, deterioration or recurrence of a prior injury’ to be compensable, • the employment must be a significant contributing cause.

The downside for employers is that the term ‘secondary disability’ is not part of the new Act. Where a claim which is, or results from, “the aggravation, acceleration, exacerbation, deterioration or recurrence of a prior injury’, and it is accepted on the basis that employment was a significant contributing factor, the claim will now have an impact on premiums, on a dollar for dollar basis. Going into the future for all accepted claims, whether for an original injury or for what used to be called ‘secondary injury’, the total cost of the weekly payments will have an impact on the premiums, the employer pays to the Corporation. For a claim with an average weekly earnings of $1,000 per week, the claim could cost an additional $104,000 in premiums over the life of the claim. The premium implications of the new Act, make it more important than ever that you have a voice in the process, if you have any claims from your workforce. Getting workers back to work, continues to be important for a variety of reasons. These reasons obviously include the cost of the premiums. The MBA SA Return to Work Scheme, is able to assist in the return to work of injured workers, at rates which are discounted for members. Houda Peters and her team possess a great deal of experience in this area, and are most happy to assist with such matters. MBA SA Legal is ready willing and able to represent members and employers in the Return to Work Tribunal whether you are part of the MBA SA Return to Work Scheme or not. Generally an employers’ legal costs of representation in the Tribunal will be paid by the Corporation. Our team has significant experience in this area including experience at Minter Ellison Lawyers, acting for the Corporation and for employers, and as an independent barrister acting on behalf of the Corporation, Self-Insured Businesses and employers. On one recent claim, MBA SA Legal has been able to achieve a premium refund for a member of $100,000 from the Corporation. Sean Richter or Wayne Turner can be contacted at MBA SA Legal on 8122 4990. Houda Peters can be contacted at MBA on 8122 7466.

This test is similar to the test used in the Commonwealth Compensation Legislation. This test is that the work contributed to a ‘material degree’. The cases which have been argued in relation to the Commonwealth Compensation Legislation have made it quite clear that the contribution of the work to the injury or illness, will have to take into account the actual work which has caused the injury or illness, rather than merely being present at work. The application of Section 7 of the Return to Work Act 2015, has already seen a number of aggravations and exacerbations of pre-existing injuries rejected by the Corporation. The upside is that there will undoubtedly be less claims accepted, where there is an injury (which includes a disease) which is, or results from the aggravation, acceleration, exacerbation, deterioration or recurrence of a prior injury.

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SA BUILDER OC TOBER  – DECEMBER 2015


Industrial Relations RICHARD CALVER, Director Industrial Relations

Construction employers call for a user friendly Modern Award Master Builders Australia has highlighted the complexity and the need for user-friendly construction industry award with the release of the sixth edition of its Modern Award Manual. “The Manual analyses the Building and Construction General On-Site Award 2010 on a clause-by-clause basis. Updated annually from 1 July for the Fair Work Commission’s minimum wage decisions, it also provides links to key interpretations by the Fair Work Commission, the Fair Work Ombudsman and interpretations that are only accessible because of the history of a provision,” Richard Calver, said. “The important matter for employers to understand is that the Building and Construction General On-Site Award 2010, together with the NES, set the minimum standards for all employees in the building and construction industry, despite that meaning they have to go through an out of date, overly long document just to understand their employee’s entitlements,” Richard Calver said. “Even those employees on enterprise agreements must be on terms which are ‘better-off overall’ when compared to the  Building and Construction General On-Site Award 2010.  For this reason, all employers in the building and construction industry need to have a solid understanding of the  Building and Construction General On-Site Award 2010 and the NES,” Richard Calver said. The publication provides employers with comprehensive and up-to-date guidance on the primary modern award for the building and construction industry– the  Building and Construction General On-Site Award 2010.

SA BUILDER OC TOBER  –   D ECEMBER 2015

A companion publication, the National Employment Standards  (NES) Booklet as modified by the On-Site Award, is also available. “This edition is an essential workplace relations guide for employers, helping them negotiate a maze of over 60 separate allowances and a cut-and-paste collection of antique provisions, particularly about outdated work health and safety issues. The  Building and Construction General On-Site Award 2010 can be a real headache for employers,” Richard Calver said. “The latest edition reinforces our disappointment with the Productivity Commission, in its draft report on workplace relations, recommending the retention of awards as part of the safety net,” he said. “Master Builders’ position is that there is no need for two safety nets: that providing fairness does not come from the form in which the safety net is delivered. It’s that simple, whereas modern awards for the building and construction industry are far from simple,” Richard Calver said. “This edition of the  Modern Award Manual  has been substantially expanded given the volume of litigation underway,” he said. “It promises to become even more relevant after 2016 when the modern award review 2014 will finally extend to the industry specific instruments.” Richard Calver said. The  Modern Award Manual  and the  NES  publication may be purchased from Master Builders Australia.

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Industrial Relations

WILHELM HARNISCH, Chief Executive Officer

Master Builders welcomes the Royal Commissioner’s decision The vital work of the Royal Commission must now continue unfettered and free from future claims of bias following Justice Heydon’s decision to dismiss the attempts by the unions including the CFMEU to shut it down. “It is in the community’s interest that the Royal Commission’s investigations into unlawful and corrupt behaviours in the construction industry continue,” Wilhelm Harnisch said. “Despite claims from vested interests in the construction unions, the integrity of the Commission’s processes have not been tainted, nor has the damning and compelling evidence that has so far been provided,” he said. “The evidence given at the Royal Commission has been provided free from bias or intimidation and highlights the price the community and jobseekers pay for the conduct of the building unions,” Wilhelm Harnisch said.

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“The evidence has shown just how out of touch the building unions are with normal standards of community behaviour and with the conduct of normal unions. It has identified a culture of intimidation that allows corrupt behaviours to flourish. The building unions know they cannot morally defend these behaviours, yet they insist on trying,” he said. “Master Builders fully supports the work of the Commission and for law anticipates its Final Report delivering strong recommendations reform, including for the return of a construction industry regulator with sufficient powers to bring the industry back to normality, free from intimidation and corruption.” Wilhelm Harnisch said.

SA BUILDER OC TOBER  – DECEMBER 2015


Planning IAN MARKOS, Deputy Chief Executive Officer

Planning reforms the beginning, not the end Planning Reforms to be introduced to Parliament are the beginning of a much-needed change, not the end, Master Builders SA says. Deputy Chief Executive Officer Ian Markos said the details would necessarily take time to review but the potential for change should be welcomed. “The detail in this Bill will determine whether it is able to kickstart the investment it promises by simplifying a system that has become over-complicated and, in some areas, a road block,” Mr Markos said. “There are hundreds of jobs that might be sparked so there is understandably a lot of interest in the Bill but the real benefits will flow when there is a viable e-planning system to take development planning mobile, and when local governments convert existing plans into those consistent with the new scheme as proposed in this Bill. That may take years: we would hope the Government looks to incentives and penalties to convince local governments it is in their interest to adopt change sooner rather than ignore the need for change. “But we support the Deputy Premier’s reforms–he has heard of the need and, more importantly, acted. We look forward to working through the details.’

SA BUILDER OC TOBER  –   D ECEMBER 2015

There remain some serious questions about how the Bill will operate, including the shape and form of the proposed infrastructure delivery scheme. While it appears to offer an alternative way of financing essential works over years rather than being paid by the first purchaser, there is a risk that home owners and developers could face the greater impost of paying for road-widening and other works. “The State Government has been proactive in terms of consultation, and that approach will be even more important for major changes hidden in the detail of this Bill,” Mr Markos said. “There is a danger of a major cost shift if this isn’t handled correctly, so we need to get it right for homebuyers, for the businesses that build those homes, and for South Australia. “The broader impact of an urban growth boundary–on jobs, on land prices, on the choice of how we live–also needs to be debated in a transparent fashion if this legislation is to gain broad support.” Master Builders SA have scheduled a series of meetings with affected members to better understand the impact of the legislation on the broader industry.

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Planning

DEPUTY PREMIER JOHN RAU, Minister for Planning

Planning reforms deliver community engagement and transparency The State Government is reforming the planning system to unlock investment potential and put people at the centre of planning decisions that will shape the communities in which they live. Planning Minister John Rau said new Bill will lay the foundations for a planning system that will realise the State’s development potential and manage our future growth. “This ground-breaking reform will provide a great framework for longterm planning, built on accountability. It will set clear directions that support investment and jobs,” he said. “Community engagement at the very start of planning decisions will be required by a new charter of community engagement. Community input will be sought at the outset, not as an afterthought. “By removing red tape, streamlining decision making, simplifying regulations and fostering greater certainty in the planning process we can deliver better outcomes.” Mr Rau said a key change in the new legislation was the recognition of an environmental and food protection area and giving only Parliament the power to approve housing development inside of this zone. Decisions about housing intruding into the environmental and food protection area will need to be approved by Parliament,” he said. Th is will help to safeguard our important environmental and food production areas from opportunistic and ill-considered residential encroachment,” Mr Rau said. “Encroachment on the environment and food protection area has a huge impact on the future of the state and places a massive fi nancial burden on tax payers into the future.

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“Decisions that may cost future taxpayers billions of dollars should not rest in the hands of just one Minister. The impact of these decisions is so great, the approval of the Parliament is appropriate. “The assessment system will be de-politicised by removing elected members from local council DAPs and replacing them with accredited professionals. “At the same time, elected officials and communities will have more of a say from the start on key policy directions.” Under the legislation developers and landholders will contribute to the infrastructure needed as part of any new build. “An infrastructure scheme will be introduced; where appropriate, this will provide flexibility in the way necessary infrastructure associated with development can be provided. This will make the entry cost to home ownership lower in many cases. “This will remove a major impediment to investment and provide a fairer distribution of infrastructure costs. “The current rigid open space contribution scheme is meant to ensure public open space is provided but it simply isn’t working as well as it should. This will be improved.” Mr Rau said the aim is to revitalise communities and make it easier for all applications large or small to gain and early “yes” or “no” rather than a drawn out ‘maybe’, he said. “Through consultation people also made it clear they want to interact with the planning system online and in their own time, and we will move to have all planning information accessible on a central e-planning portal.”

SA BUILDER OC TOBER –DECEMBER 2015


South Australia Police (SAPOL) is committed to working in partnership with the community to prevent crime and reduce the fear of crime to ensure that South Australia is a safe place to live, visit and do business.


South Australia Police (SAPOL) is committed to working in partnership with the community to prevent crime and reduce the fear of crime to ensure that South Australia is a safe place to live, visit and do business.


South Australia Police (SAPOL) is committed to working in partnership with the community to prevent crime and reduce the fear of crime to ensure that South Australia is a safe place to live, visit and do business.


South Australia Police (SAPOL) is committed to working in partnership with the community to prevent crime and reduce the fear of crime to ensure that South Australia is a safe place to live, visit and do business.


WHS News REBECCA PICKERING, SQE Manager Master Builders SA

Separating WHS compliance and education The State Government has proposed an overhaul of SafeWork SA with the aim of separating its education and compliance roles. Master Builders SA has made a submission to Government as to the limitation of this model and some likely solutions. The trust of industry must be encouraged for better safety outcomes, which will come from ensuring SafeWork SA officers are highly trained, qualified and experienced at their areas of expertise. Th is submission also calls for added transparency of investigations and rights of entry to ensure the public have greater confidence in the agency. Our recommendations include: • Education officers undertaking site visits are likely to be faced with the challenge of identifying existing risks but either having no compliance role–or breaching the trust that this model seeks to encourage between business and regulator. The effectiveness of this model requires a solution to this problem. • Inspectors should be able to use the full range of compliance options while in the field to ensure compliance with the law. They should be able to use their judgement and experience to impart their knowledge. This includes advice, assistance, education, compliance and enforcement to gain the best safety outcome, while also delivering public confidence in the agency and its ability to deliver the necessary outcomes. 

• The pivotal roles of Executive Director and Chief Inspector require an extensive merit-based search if they are to yield professionals with a true commitment to re-energising an essential agency that is in need of cultural change. Master Builders SA recommends the two-week timeframe for applications for these roles be extended and a national search undertaken if the best candidates are to be found. • It is imperative the appointee to the role of Chief Inspector is seen as capable from a technical perspective (engineering, mechanical, machinery, high risk plant, guarding, structural, and electrical) if they are to be seen as being capable of leading industry best practice from a global and public safety perspective. • The agency’s adherence to key performance indicators and status of investigations, including rights of entry exercised, should be published on a real time basis to encourage transparency and public confidence in SafeWork SA. • All operational guidelines and policies should also be published to empower inspectors to undertake compliance activity as required. • Master Builders SA recommends all advisory council meetings be open to public scrutiny to ensure full transparency and thus ensure public confidence in the body charged with securing public safety. This is supported by the Attorney General’s commitment to an open and transparent SafeWork SA. To read the Master Builders full submission log on to mbasa.com.au

SA BUILDER OC TOBER – DECEMBER 2015

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Technical CHRIS WILTSHIRE, Development & Technical Advisor

Red Tape Unravelled During my time as a building surveyor a core part of my job was to enforce legislation. There is a perception within the building industry that South Australia has too much legislation and that some of it is unnecessary. It is branded “red-tape” and is seen as the basic fundamental problem, which causes the industry to stagnate. It seems endless and has an effect wherever you work, whether it is on a large commercial building or back yard alfresco. No one is immune. So what does red tape look like and can we just peel it off in one swift move to resolve all our problems. The answer is no. Rather than red tape it should be called duct tape: it does not come off easy. Red tape looks like paragraphs found in Acts and Regulations that makes working life hard. At least that’s the perception. So the obvious questions are: why do we have it, how did it get here, is it necessary and can we fix it? The first question is easy to answer; red tape is here to protect the public. It evolves over time and is usually triggered by an event or necessity to stop an event from occurring. Sometimes red tape turns completely workable legislation into a six-month training course. It becomes time consuming to learn and time consuming to implement. I can feel the frustration as you read these words. Red tape costs us money and gives us very little in return, so it’s no wonder we hate it. But red tape does not start out as red tape. It starts out as a good idea based around honourable initiations. The truth is most people who initiate new rules do so out of good intentions. The problem is that it gets lost in translation either by a lack of consultation between major parties or just a good old-fashioned communication breakdown. Once the changes are adopted we are then stuck with them for good! Or at least that’s how it feels. Then we hit the same repetitive cycle; do what is required, complain about it until the point becomes stale and finally, before we know it, the process becomes part of our psyche. Is this a necessary evil that we are condemned to live with for the rest of our working existence? No. Red tape is something we should not have to put up with, but let us make one thing clear before we jump on our high horse. Necessary legislative change is not red tape; poorly legislated reform is the problem. The building game is a dynamic ever-evolving industry where change is always required. How this change is handled is the cause of consternation. It leads us to the ultimate questions: can we fix bad legislation and can we stop the red tape process from occurring again? I’ve asked myself these questions many times and a recent experience cleared my mind. I was invited to a round table discussion at Parliament House with members from both Liberal and Labor parties and other leading industry representatives. Everyone was open and honest. The issue at hand was

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fire protection for farm buildings. For years the horticultural and agricultural industries felt harshly dealt with by governing authorities. In their eyes the requirements were too onerous and, in some instances, financially unjustifiable. The farming community believed the approval process was too slow and a clear case of red tape legislation. The tipping point was when major players within these industries started looking interstate to continue their businesses. A lobby group was formed and their case was presented to the State Government. The meeting was relatively brief but the direction was clear: change was needed and a working group was formed which included industry representatives. To my surprise amendments to the Minister’s Specification for Farm Buildings were adopted within six months of the round table discussion. It was a successful case of industries not willing to accept the existing process and demanding change. The conclusion after this experience was obvious: it is possible to fix legislation perceived as red tape. Hooray! A victory that gives every honest worker a cause for celebration. But before the champagne bottles are popped a closer look at the answer reveals a conundrum. If we can fix red tape why doesn’t it happen more often? If there is so much of it out there why is this case unique? The truth is in the detail. The adoption of an amended Minister’s Specification only occurred because people worked together to make change possible. The team assembled for the working group was highly motivated and extremely professional people who volunteered a lot of their own time to the cause. Although there were times when discussion stagnated they were able to work through their differences and come to a common ground in relatively quick time. The State Government also played their part by

SA BUILDER OC TOBER  – DECEMBER 2015


Technical

confirming they supported a change to the Minister’s Specification. Realistically this result was only possible because the State Government was willing to admit there was an issue in the first place. So why did the Government show support? The lobby group was convincing in showing them that doing nothing would have financial implications for both the agriculture and horticulture industries. Potentially losing jobs interstate is not a good look for any State Government and hence legislative changes were made. The end result was based on the following facts: A case was presented to the State Government, one of which made them take notice. The people presenting the case did so in a united front. The lobby group was made up of two important industries and most importantly the case highlighted a problem that directly affected the state’s productivity in those areas. It is easy to see why the farm building amendments are a unique case. To achieve change a lot of hard work took place without any guarantees, which is a sobering thought for the average worker who wants to effect change but doesn’t have the time or the connections to do so. Unless you have a problem that is common to the majority, can congregate the numbers for support and are prepared to put in long hours then put the champagne on ice because that red tape is stuck. Not great news for those of us affected by it. Therefore if we don’t have the strength to remove it, can we find help to stop red tape from occurring in the first place? The answer is yes. Advocacy and lobbying is a key purpose of Master Builders SA. We have achieved changes to laws that have held developments back, and have been vocal about changes needed to make business easier in South

SA BUILDER OC TOBER  –   D ECEMBER 2015

Australia. We have connected with our members and their concerns to get the best outcomes possible–and will continue to do so. We are currently looking at planning reforms, industry-wide reforms and looking for red tape ripe for improvement or cutting. Before you contemplate making a submission as part of a State Government consultation process, let me offer you this piece of advice. Simply making a submission yourself does not automatically guarantee you’ll get what you want. It is very important you choose the right pathways and organisations to help raise your voice. Master Builders SA can amplify your voice and help you achieve your needs, drawing on our large membership and our years of advocating for the industry. We know the pitfalls that can happen in this process. Let us not forget the promised land of the residential code, a new way to streamline common Development Applications. Although not a classic example of red tape, the residential code delivered us additional checks and confusing criteria, which forced people to ignore it. The latest proposed planning reforms indicates residential code version 1.0 had problems for various reasons. By gathering enough good ideas and presenting those to the State Government, I’m hopeful that the final legislation will address the current deficiencies and create a planning regime that will facilitate development–not create a new hurdle for every new project and every new job. So just remember when you mention those time honoured words “red tape” again, there is something you can do about it. Just be ready to get involved in the work–duct tape is a very sticky substance. Any member that wishes to work with the association on the above topic can contact cwiltshire@mbasa.com.au

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Feature Bunnings Warehouse

Pascale Construction CONTRIBUTES TO JOBS WITH THE CONSTRUCTION OF A NEW BUNNINGS WAREHOUSE

While July’s official jobs figures showed South Australia’s unemployment rate rising to 8.2 per cent - its highest level since February 2000–, Pascale Construction engaged more than 200 skilled trades to work on the design and construction of the new $11 million Bunnings Warehouse store at Seaford, South Australia. Bunnings Limited awarded the new Bunnings Warehouse store project to Pascale Construction in October 2014 and required the project to be completed in a very tight frame. The project’s scope comprised of demolition of existing buildings, construction of a 7,200m2 new precast concrete, structural steel and metal roof deck warehouse together with construction of supply areas, external garden and landscaping, and new car park–with extensive water recycling and retention systems. The 27,600m2 Seaford site area includes around 10,000m2 of retail space incorporating the warehouse store along with 2,500m2 of the outside secured space–a combination of landscape and building materials supply areas–, and 17,000m2 of external car park and landscaped areas. Road works were also part of the project’s scope, with the installation of a new roundabout to the intersection of Seaford Rd and McMillan Rd, widening of Seaford Rd, and the construction of a new exit to Main South Rd for Bunnings delivery vehicles. The Management of the public, site personnel and associated road works required a specific Work Zone Traffic Management Plan (WZTM). A trained and accredited professional developed the plan ahead of commencement identifying hazards associated with worksites requiring traffic management, assessing the level of risk to employees and the public, controlling the traffic flow, and planning and implementing appropriate traffic Management plans.

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To enable all the work to occur in a seamless way Pascale Construction’s team ensured that communication was paramount in the successful implementation of the plan. Although the fast tracked nature of the Design & Construct approach was a challenge for all, it minimised the risks for the client whilst reducing the delivery schedule by overlapping the design and construction phases allowing earlier stages to proceed prior to the final development approval sign off. Consequently, project completion was achieved in 34 weeks, which included significant impact of wet weather, and Pascale Construction’s team successfully handed over the store to the client in August 2015, providing high quality and cost-effective construction services meeting and exceeding the client’s expectations throughout the project.

SA BUILDER OC TOBER  – DECEMBER 2015


Feature Bunnings Warehouse

Proud supplier of the concrete floor treatment applied to the new Bunnings Seaford store.

Thank you Bunnings for your support Australia wide

PO BOX 182 Chadstone Centre VIC 3148 / 0409 427 101

info@greenconcreteproducts.com.au greenconcreteproducts.com.au

Distributor of the Ashford Formula in SA, VIC, TAS, QLD. Distributor Australia wide for the UltraCure Curing Blankets. Distributor Australia wide for the GelMaxx product range.

SA BUILDER OC TOBER – DECEMBER 2015

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Feature Bunnings Warehouse

THE COMPANY Established in 1982, Pascale  Construction specialises in projects of unique complexity, which often require unwavering attention to detail and, consequently, a substantial commitment in time and hands-on effort. The company has expertise in all aspects of building and construction, from skilled trades through to project and site management, engineering and administration. They have a dedicated and competent team of tradesmen who have vast experience in detailed and complex styles of work. Through a partnering approach and coupled with the high quality of workmanship on projects they have forged their way to become a market leader in their field. Pascale Construction is proud of many successful project outcomes, which are facilitated by the use of its accredited systems. The company has an Integrated Management system (IMS) in place to manage Work Health and Safety (WHS), environmental and quality requirements on all of our sites, with all three Management systems being accredited to AS/NZ 4801, ISO 14001 and ISO 9001. At Pascale Construction safety leadership is demonstrated from the Directors to front line Managers, having safety enshrined in corporate goals with strategic objectives and plans for the achievement of best practice WHS on their sites. As such, Pascale Construction has a strong behavioural component to safety leadership, which ensures this culture is fully embedded into its practices.

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As recognition of the quality of their construction projects, Pascale Construction has been awarded three awards at the 2015 Master Builder Association Building Excellence Awards. The success of their construction has also been demonstrated around South Australia, most recently at the Bunnings Warehouse at Seaford, Salisbury East Education Centre Arts Facility Redevelopment, Kings Park Medical Centre and James Brown Memorial Trust at Clovelly Park.

SA BUILDER OC TOBER  – DECEMBER 2015


Feature Mayfair Hotel

Jewellery Box Expansion For Adelaide’s Historic Mayfair Hotel

SA BUILDER OC TOBER – DECEMBER 2015

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Feature Mayfair Hotel Located on the corner of King William and Hindley Street, the Mayfair Hotel is a heritage-listed building that recently underwent a $55 million refurbishment, including the addition of a modern glass cube extension that sits alongside the main building’s 1930’s stone and gargoyle-adorned façade. South Australian based cladding specialist, SA Construct, was contracted early in the design process to give build-ability feedback to the project builders, Watpac. The success of this initial work resulted in the company being awarded the design and construct contract to supply and install the “jewellery box” façade for the cube extension This complex project has seen SA Construct be awarded the Master Builder of the Year award for specialist contractor. The design of the cube façade, by JPE Design Studio, was developed to look like a “jewellery box” with a silver basket weave appearance on each elevation. Panels were aligned in a grid spacing of 1m rotated on a 45-degree angle. This architectural feature created significant installation challenges, particularly around the four main edges of the building. It was critical that every corner fall perfectly on the midpoint of the panel to generate a visually perfect flow of panels around the building. SA Construct Managing Director, Jarrad Morgan, says that the intricate design and prefabrication of the cladding elements meant that every specification needed to be adhered to with absolute accuracy to avoid installation problems and associated cost and time overruns. “The design was based on the principle that all the building edges of the façade landed perfectly on each corner so it achieved perfect symmetry,’ Mr Morgan said. ‘This particular project was unique as it reversed the traditional inside-out approach of construction. As the key design element was the “jewellery box” façade we needed to think about construction from the outside-in.” he said. Sub-contractors meetings early in the project period, involved open conversations between SA Construct, Watpac and the project engineers, Dare Engineer & MLEI Consulting Engineers. SA Construct advised that to meet the architectural intent and maintain a perfect pattern, it was vital that all windows, slab set out, structural steel and framing be perfect with tolerances of only +-2mm otherwise the cladding pattern would not wrap the building as intended. Unlike most projects there was no option for last minute alterations to the final panels to make the façade work. “A challenging project like this requires the engagement of contractors from an early stage to reduce project risk. This isn’t just risk to staff, but risks such as cost blowouts, timeline extensions, material wastage or worse, not achieving the design intent,’ Mr Morgan said. A long planning phase for the cladding component, initiated early on in the project, coupled with detailed design work using high-end 3D CAD software were pivotal to the success of the project for SA Construct. By electronically capturing, measuring and reproducing the existing slabs, sub-structures and every element in the cube-walling, windows and cladding, SA Construct were able to conduct an interference detection analysis. Doing this allowed SA Construct to locate clashes between the various trades, propose new design ideas and bring it the attention of the builder enabling them to make the necessary changes well before the project substructure was complete, saving rework and time later on in the building programme. “As architectural designs become more complex we recognised that this higher level 3D design approach helps eliminate risk to all stakeholders, speeds up construction and delivers added value to the building contractor”. Mr Morgan said. The grid alignment of the façade (as shown) was digitally designed by SA Construct using state-of-the-art in-house 3D design systems, which produced detailed drawings for each individual trade. These 3D designs

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were subsequently used to prefabricate all the material elements, including structural steel and window placement studwork. For the intricate 45-degree window design somewhat scattered across the façade, SA Construct developed structural steel window stubs that aligned to perfectly fit the grid and prefabricated setout. Every window was set out to its own drawings ensuring that its corners laded precisely on the correct RL and gridline offset. A secondary weatherproofing panel system, constructed of aluminum composite, was also designed to fit the different window configurations around the façade, acting as a double backup system reducing the reliance on silicone. The introduction of a project specific fixing system to facilitate the intricate and layered window design was pivotal in making the ‘jewel box’ and its iconic basket weave pattern possible. “By doing the 3D design we could overlay all elements of the design and forewarn the builder of all clashes between various trades as well as any misalignments, thus reducing the risk to all parties involved and the potential cost of rework and alterations, which has a flow on effect to budget, timelines, and project handover.”

SA BUILDER OC TOBER  – DECEMBER 2015


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SA BUILDER OC TOBER – DECEMBER 2015

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Feature Mayfair Hotel

The project wasn’t without its problems however, and through early planning two major issues were avoided. 1. SA Construct identified that the existing slab sizing did not work with the proposed perfect pattern and subsequently advised Watpac that prior to any fit out work commencing some suspended slabs needed to be extend by up to 300mm and others were required to be cut back. Without these alterations the façade pattern would not match the design and additional costs or a change in design intent would have been incurred later in the project. 2. Upon reviewing detailed design plans, SA Construct discovered that the structural steel design had not been overlayed with the architectural drawings and that the top fascia truss would have been protruding the finished face of the façade. The SA Construct design team and Watpac quickly identified solutions and, with a high level of accuracy, eliminated the risk of clashing or misalignment. Without the use of SA Construct’s sophisticated technology, the builder would have been exposed to higher risk, where alignment out of grid would have only been discovered at the final stage of cladding. This would have resulted in extensive budget outlay to survey, diagnose, and coordinate trades to reinstall. Following SA Construct’s original tender submission to the client, a meeting was arranged with the design team where alternatives to the existing design were proposed in order to get a better outcome for the client. By altering design elements in the detailing and introducing a new mechanical fi xing system not previously used in South Australia before, SA Construct was able to achieve significant cost savings for the client and was subsequently contracted for more than 30% less than the original tender submission. These cost savings allowed the client to fund other design elements, including bronze, & CFC cladding, which was subsequently contracted to SA Construct. With onsite staff totaling a maximum of 12 throughout the project, SA Construct spent more than 4,700 man-hours onsite & in in the workshop delivering the finished product.

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“Th is was not only a substantial project for us in terms of cost, it also required major staffing logistics. We didn’t use any subcontractors during the project and all staff were full time SA Construct employees.’ ‘By using only SA Construct staff we are able to ensure exceptionally high standards and consistency across all elements of the work we do. At the end of the day, I am the one who is accountable for the end result and I need to know that all the staff I have on site are delivering a standard that appropriately represents SA Construct.” Mr Morgan said. The end product is a perfect example of a new age approach of early involvement between all contracting parties and demonstrates how this assists in delivering an outstanding result for the client, on budget and within timeline requirements. “Our goal is to be the market leader in the industry by delivering outstanding service backed an innovative mindset, honest and hard-working reliable onsite construction.” Mr Morgan said. Project: Mayfair Hotel Total project cost: $55 million Architect: JPE Design Studio Engineers: Dare Engineer & MLEI Consulting Engineers Builder: Watpac Specializing in all form of external cladding & roofing, SA Construct is a privately owned South Australian based company managed by 28-year-old Jarrad Morgan. With core business objectives focusing on outstanding service, high quality products, and safe systems of work, SA Construct has won numerous awards including Young Builder of the Year (2014), Excellence in Cladding (2014, 2015), and Master Builder of the Year – Specialist Contractor (2015). Since starting operations in 2011 the business has grown at an average of 100% each year, seeing an annual turnover in excess of $9 million last financial year and employing more than 80 staff.

SA BUILDER OC TOBER –DECEMBER 2015


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SA BUILDER OC TOBER  – DECEMBER 2015


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2015 Master Builders SA Builder Magazine Oct-Dec  

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