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OCTOBER – NOVEMBER 2016

T H E

O F F I C I A L

J O U R N A L

O F

T H E

M A S T E R

B U I L D E R S

A S S O C I AT I O N

O F

S O U T H

AU S T R A L I A

CELEBRATING THE BEST OF SOUTH AUSTRALIAN BUILDING

FULL STORY ON PAGE 26

A NEW 30-YEAR PLAN FOR ADELAIDE

PAGE 11

NEW PATHS FOR CLADDING REFORM

PAGE 14

GETTING THE BALANCE RIGHT ON SECURITY OF PAYMENT

PAGE 16


Building Australia Master Builders Australia

2017 National Conference, Building Exhibition & National Excellence in Building & Construction Awards

23–25 November 2017 | Hobart Tasmania The Master Builders Australia 2017 National Conference ‘Building Australia’ will be held in Hobart at the historic Princes Wharf 1 (PW1). The recently restored heritage building is a first class multi-purpose function and event venue located on the waterfront of the Derwent River in the heart of the Salamanca Precinct. The venue is within close proximity to restaurants, hotels, cafes, retail outlets, major tourist attractions and departure points. Whether it’s a ferry to MONA or a coach to the top of Mount Wellington, PW1 provides a perfect base to explore the best Hobart and surrounds has to offer. As part of your conference experience, delegates will enjoy a river cruise to a special offsite conference dinner at MONA the Museum of Old and New Art. A comprehensive program of high profile speakers will examine the building industry outlook, focussing on topics relevant to today’s building and construction industry. An exciting social program will ensure delegates’ attendance is a rewarding experience. www.masterbuilders.com.au

Supplied by Mona 2011 National Awards

Image: Hobart City Council

Image: 2015 Master National Awards Image: Kathryn Leahy Image: Rob Burnett

Image: Jesse Dejardins

Michael Walters Photography

Image: Paul Fleming

Image: Alastair Bett

save the da

te

Image: Peter Topliss

Image: Andrew Ross

Image: Alastair Bett

Discover Tasmania

Alastair Bett

Local attractions and tours make Tasmania an ideal destination for delegates and their families. Attractions include MONA, the Salamanca Markets, Tasmanian Museum and Art Gallery, Mount Wellington, Historical Port Arthur, Richmond, Peppermint Bay, Cascade Brewery, Royal Botanical Gardens, Bonorong Wildlife Centre, Maritime Museum, Derwent River Cruise, Russell Falls, Pennicott Wilderness tours, Cradle Mountain and Cataract Gorge just to name a few. Images courtesy Tourism Tasmania.


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CONTENTS

SA BUILDER OCTOBER — NOVEMBER 2016

FOREWORDS 03

CEO’S REPORT

04

PRESIDENT’S REPORT

06

ADVOCACY UPDATE

REPORTS 08

NEWS

UPDATES 10

DEVELOPMENT

15

ECONOMY

20

LEGAL

23

SAFETY, QUALITY & ENVIRONMENT

24

TRAINING

FEATURES

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, Morry Canala, Neil Mossop, Nathan O’Neill, Fred Pascale, Patrick Innes, Anthony Gow, Des Pawelski Master Builders South Australia:PO Box 10014 Gouger St. 47 South Terrace, Adelaide, South Australia Phone: (08) 8211 7466 Fax: (08) 8231 5240 Email: buildsa@mbasa.com.au Executive Editor: Master Builders Association

Published by: Crowther Blayne Media Specialists Phone: 1800 222 757 Email: publications@crowtherblayne.com.au Web: www.crowtherblayne.com.au Managing Editor: Trish Riley

16

SECURITY OF PAYMENT: GETTING THE BALANCE RIGHT

Sales: Rose Delosreyes and Paul Baird

26

BUILDING EXCELLENCE AWARDS 2016

Design Team: Dan McGirr, Andrew Crabb, Michelle Triana

34

LOVE YOUR LIFE OUTSIDE

Printed by: Newstyle Printing

2

Editorial: Jessica McCabe Production: Yvonne Okseniuk

SA BUILDER OCTOBER – NOVEMBER 2016


IAN MARKOS,

CEO’S REPORT

CEO, Master Builders SA

Our industry does its best when it celebrates its achievements.

A

lthough it is a competitive industry, knowing you are considered among the best cuts across margin, programs and costs. And so it was that the years most outstanding achievements were celebrated last month when nearly 1000 people gathered at Adelaide Convention Centre for the year’s Building Excellence Awards. As usual, it was a spectacular event that few Associations can boast. Bavarian dancers opened the Oktoberfest theme, followed by an expert yodeller and some brave souls exploring their own yodelling abilities before comedian Anh Do hosted the night of awards. There is no doubt that these awards are highly valued. The height of emotion on the night showcased the delight of those who can celebrate being named among the best in the industry. And the feedback following the event gives us an opportunity to build a stronger event next year. The judges are completely independent of Master Builders SA and have a clear task: to identify those projects they believe meet the standard of excellence, scoring more than 80 points on judging. That standard is an extremely high standard, which means there are no awards in some categories. This isn’t a new approach, but is an approach we should embrace. As Master Builders we celebrate the best, and we celebrate being the best. Our awards should be a badge of honour that is acknowledged by the entire industry and not just best on ground. But the success of the night goes beyond the obvious winners. There are now a greater number of smaller builders nominating for the awards, and a greater number of winners from that group. The young builders we have celebrated in the past are now challenging at the very highest levels, forcing our entire industry to deliver performances that are truly outstanding. This is not a new phenomenon, and our industry is not alone in having to embrace change. It does mean we can point to a strong future where being a winner of a Building Excellence Award identifies you as a builder who has stood out as the best among the very best. That point was not lost on the guests on the night; leading political representatives and departmental officials that govern our industry all remarked on the high standards expected and all welcomed the fact that the industry was in good hands.

SA BUILDER OCTOBER – NOVEMBER 2016

The night also marks the start of the end of the year. It is a busy time with more events and more changes at a regulatory level that demand our focus. Most encouragingly, Master Builders SA is being consulted on these changes, and our representation of the industry is being noted as providing valuable input. While we cannot claim a 100 per cent strike rate yet we are confident that your voice is being heard at the highest levels. Training the next generation of builders and growing existing businesses is at the core of a review of our training offerings for 2017. A new internal system will offer greater transparency over training delivery, and our focus on delivering industry-best relevant training will see the rise of a new “business basics” series of courses to help members build a stronger business in the face of significant change. We are also in the process of identifying new product offerings and deals that will add further value to your membership. This year has been busy and shows no signs of slowing down. Like the industry, we are looking to achieve the best outcomes as efficiently as possible, and I don’t see this changing any time soon. But we are on the right track. We have the right people, and all are focused on getting the best outcomes for our members and the broader industry. For all winners of this year’s Building Excellence Awards, I congratulate you for your achievement and the recognition of your professionalism. For all those who entered, I thank you and congratulate you on your outstanding work and efforts. And for all others, I encourage you to nominate next year. We are the only Association that can claim to represent the breadth of the industry, and we should be proud of that. A Master Builder should celebrate the best of the profession as an apprentice, as a home builder, as a commercial builder, as a specialist contractor. We are all construction professionals and should recognise that we are the best in the industry. That is certainly something to be proud of.

The best of the best–see this year’s Building Excellence Award winners on page 27.

3


XXX

RICHARD BRYANT, President, Master Builders SA

PRESIDENT’S REPORT

Australia went to the polls in July for an election that was called on the future of the building industry and a need for stability.

I

t was a noteworthy moment for the importance placed on the work we do, the people we employ and the community we are a part of. But as is the way of elections, the final push moved onto other issues and the double dissolution trigger was left in shadows. Yet despite the frustration of a lack of a clear-cut result in the days following the closing of polls, the original motivation for this past election remains relevant. The diverse mix of Senators returned–including the 12 of the 64 people who nominated–lends itself to a possibility of the passing of Bills relating to the Australian Building and Construction Commission, a body designed to replace Fair Work Building and Construction. The business community’s call for stability, however, remains to be tested. There are early signs that key Budget savings will be supported by both major parties, but also early signs that the Federal Government’s single-seat majority is likely to be challenged at the earliest possible juncture. This could lead to a vote of no confidence and concerns about whether voters will return to the polls sooner rather than later. This is likely to send a signal to everyone–businesses, families and communities–that we should return to the holding pattern we kept during the marathon election, rather than investing in future growth. There was, however, a bright spot from the last election. As the days turned to weeks and the weeks turned to months, people started to turn away from the matter. Instead of wondering about the future of the country, they started to move on with it. Businesses invested. They grew. Employment continued. Communities moved on. In South Australia, the signs continued to be mixed. Unemployment has fallen from its record highs so the State no longer boasts the highest

4

rate in the country, but is still expected to grow as Holden shuts next year. On the other side, it appears that building approvals have rebounded after a long time trailing their 10-year averages. The Reserve Bank’s decision to cut the cash rate to an historic low of 1.5 per cent offers industry a commitment to stimulus, despite concerns over the fact that such stimulus is needed. On the regulatory side, too, signs are mixed at a State level. Master Builders SA continues to work with the Planning Minister, Deputy Premier John Rau, to find the best way to implement the planning reforms. This is a slow process but necessarily a thorough one if we are to see the benefits of a new planning system focused on creating a stronger economy with a system that has a bias that encourages investment. Proposals have also been raised that might see the introduction of mandatory rectification orders for the industry and a requirement for supervisory checklist records for the housing sector to be maintained over and above current obligations. Master Builders SA’s Housing Committee resolved to call for greater details around the need for rectification orders and extended checklists. At a time when the State Government is calling for the repeal of red tape as part of its “Simplification Day”, any new requirement must present a clear case for change. In the case of new planning laws, that is clear: they need to change to make it easier for people to invest. The case for rectification orders and checklists is yet to be made out. Master Builders SA continues to look for ways to make it easier for our industry to grow and thrive.

SA BUILDER OCTOBER – NOVEMBER 2016


Investment in Bricklaying Drives Excellent Results in 2015/2016

During the year to June 2016 Australian Brick & Blocklaying Training Foundation (ABBTF) achieved the following: • 106 careers events and promotions were attended to encourage young people into the trade. Many of the events included Try-a-Trade.

• Achieved an increase in apprentice numbers in training of 2,609, the highest for five years.

• 1,144 students were provided with Try-a-Trade and Step Out Programs at targeted schools.

• 81 adult apprentice bricklayers were supported with a $2,000 incentive for employers to partly offset the pay rate cost applicable at age 21.

• 2,752 schools were provided with regular trade and career information, including a student nomination web page.

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

• Achieved a record number of website hits through a recruiting campaign on Facebook targeting youth in areas of high apprentice demand.

• Contacted supported apprentices and their employers to provide support in line with the retention program. • Produced 28 e-newsletters and 60 blog articles to inform industry on bricklaying and ABBTF activities.

• Ran a campaign to target mothers of school leavers following the release of Year 12 ATAR school results.

• Worked with a number of residential builders to share ABBTF strategies and address the bricklayer shortage.

• 13,200 Facebook Fans were reached via social media contact targeting Gen Y and Z. • 468 job seekers and students attended Work Ready Programs in bricklaying leading to an on-site trial and potential sign up as a new apprentice. • More than 200 apprentice job vacancies were identified through the support of bricklayers and Group Training Companies.

• Provided evidence to Government on the bricklayer shortage to successfully advocate for bricklaying to remain on the Skilled Occupations List. • Provided advice to Government and industry training organisations in some states on workforce participation and training strategies. • Supported quality apprentices participating in WorldSkills Australia competitions at regional and national level.

• Introduced a $2,000 incentive to employers to sign up female apprentices and supported their retention.

• Provided a scholarship to support the training and preparation of Bricklaying’s competitor for the 2017 WorldSkills International event.

• 1,669 apprentices were supported with employment and training via the Brickstart Subsidy for their employers. OPERATING RESULTS

2015/16 Nos.

2014/15 Nos.

Apprentices in Training

2,609

2,474

ABBTF Supported Apprentices

1,669

1,641

ABBTF Supported Commencements

1,134

890

Operating Surplus

611

(52)

405

302

Training Reserve

2,814

2,203

App Subsidies to Employers

ABBTF Supported Completions Adult Apprentice Support Work Ready Course Commencements Careers Expo Events Attended

2015/16 $000’s

2014/15 $000’s

Revenue

4,566

4,620

Total Expenditure

3,955

4,672

FINANCIAL RESULTS

81

63

1,202

2,052

468

385

Recruiting and Training Support

426

429

Taster and Work Ready

146

236

Promotion

412

373

106

105

1,144

2,193

Peak Monthly Websites Visits

16,214

16,832

Development

970

870

Facebook Fans

13,200

11,100

Administration

800

712

Step Out Program and Try-a-Trade

Ian Stoneman, Chief Executive Officer August 2016

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

Chloe Buck, a great example of the high quality female recruits joining the Bricklaying trade. 1300 66 44 96

www.abbtf.com.au | www.becomeabricklayer.com.au Supported by Brick & Block Manufacturers of Australia


ADVOCACY UPDATE

RUSSELL EMMERSON,

Director, Policy and Communications

About 18 months ago, the State Government undertook its first review of the Building and Construction Industry Security of Payment Act.

I

t should come as little surprise that a law that only raises its head during a dispute can itself cause conflict, but the review seemed to crystallize a number of conflicts. At the time members of Master Builders SA could find little agreement on the reforms, with the collapse of Tagara Builders and an active union campaign to split the industry leading to a single agreed position: the industry needed to come together. That review ended with little Government response. The review itself stated there was insufficient evidence for sweeping changes, and the matter was left. That changed in June. Small Business Commissioner John Chapman released a Consultation Paper signalling potential reforms that stretched far beyond Security of Payment to include proposals raised by the Senate Standing Committee on Economics report into Insolvency in the Australian Construction Industry. Small Business Minister Martin Hamilton-Smith confirmed interest in Master Builders SA’s perspective, wanting an industry voice on the proposals. Things have changed, too, within the industry. Master Builders SA sought feedback on the individual proposals from Subcontractors, Commercial Contractors and Contracts Committees–all of whom largely agreed on how the Association should respond to the reforms. More importantly, our Industry Futures Working Group–with representatives from all sectors–agreed on an approach with the aim of delivering workable reforms that supported, and not hindered, South Australian businesses. Master Builders SA also consulted with individual members and other industry associations to challenge the positions developed, ensuring that we could truly tell the State Government that our position represented what was best for South Australia’s building and construction industry. While we are waiting for a State Government response to our submission, we can be proud of the distance travelled over the last 18 months. It has revealed the passion of many of our members and a desire to be involved in improving the industry. In short, it has strengthened our ability to protect what is needed and to change the industry for the better.

The future of prequalification

Significant questions remain over the future of South Australia’s prequalification scheme. The proposal that has been released by the Department of Planning, Transport and Infrastructure clearly indicates a desire to pull back from an industry-wide scheme. The reason is thought to be two-fold: to reduce administrative demands when the Department rarely contracts specialists directly, and to avoid duplication in a framework where builders effectively take responsibility for specialist contractor work. Early talks with the Department have opened consideration of another path: the creation of an industry-backed prequalification scheme for builders, backed by Master Builders SA. Early work has been done on this option, and DPTI discussion papers refer to this approach, however it is understood the Department will likely move to review its own system before this alternative can be established.

6

Master Builders SA has already been contacted by members whose prequalification application or renewal is in a holding pattern, or whose prequalification has ended with uncertainty about its currency during this review period. Master Builders SA has been informed that no business should be disadvantaged during this review, but asks members to contact us if your experience does not reflect this. Given this matter continues to develop, we will update members as more information is known.

Changes to our planning system

Deputy Premier and Planning Minister John Rau has completed his fourth industry meeting concerning the implementation of his planning reforms. The meeting directly engages representatives of Master Builders SA, the Property Council of Australia, the Urban Development Institute of Australia and the Local Government Association to provide direct industry feedback on the likely impact of the proposals. There is, as yet, no concrete changes that can be tabled, an outcome that has caused some frustration from members, but there is also a need to remember the scope of these reforms. The Deputy Premier always signaled that the complete rewriting of South Australia’s planning regime would be a three- to five-year project. It involves new planning bodies, new planning rulebooks, a new electronic-first planning system and a new series of essential policy documents outlining expectations and community input. Master Builders SA would like to see changes coming on line as quickly as possible, but would like to see the best outcomes first and foremost. Members have expressed frustration with the current planning system and, more particularly, the cultures within some Councils that impede development rather than facilitating it. Those cultures have been built upon a Development Act now in its 23rd year. The new Planning, Development and Infrastructure Act has, as its primary object, the aim of “supporting and enhancing the State’s prosperity” through an efficient planning system that “promotes and facilitates development”. In contrast, the current Act is aimed at providing “proper, orderly and efficient planning and development” that, among other things, “enhances the proper conservation, use, development and management of land and buildings”. Getting the new system on foot will take time–but the early signs are there that it is an investment in time that will be well spent when it comes to South Australia’s building and construction industry.

Turn to page 16 for an edited version of Master Builders SA’s submission on proposed changes to the Security of Payment Act.

SA BUILDER OCTOBER – NOVEMBER 2016


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SA BUILDER OCTOBER – NOVEMBER 2016

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6/30/16 8:52 AM

7


NEWS

Union fines show no lesson has been learned

T

he handing down of another $132,000 in fines against the CFMEU and its officials raises questions of whether the union is seriously committed to building a stronger South Australia, Master Builders SA says. The Federal Court has penalized the Construction, Forestry, Mining and Energy Union (CFMEU) and officials an additional $132,000 for breaching the Fair Work Act 2009 on several occasions in 2015, culminating in three decisions bundled together and delivered by Justice Collier. The breaches related to the Tonsley Redevelopment, the Southern Expressway Duplication, a redevelopment at Flinders University and two other projects. Master Builders SA Director Policy, Communications Russell Emmerson said the repeated breaches raised questions over priorities. “Another Federal Court judge has made it clear that the CFMEU doesn’t care about massive fines, and it doesn’t care about the laws put in place to protect people. Justice Collier even stated outright that the conduct of officials ‘demonstrates a demoralizing lack of respect for either the law or their roles as officials, he said. “The sad part is that taxpayers will be forced to pay more for every infrastructure project as a result–working harder to pay more taxes for the CFMEU’s inability to follow the law. “South Australia needs to focus on creating jobs, creating economic activity and creating confidence in the State. The CFMEU clearly doesn’t get the message or doesn’t care.”

Follow clear mandate for ABCC

T

he Parliament should recognise the Turnbull Government’s mandate to re-establish the Australian Building and Construction Commission (ABCC), Master Builders Australia says. “The ABCC is crucial to ensure the rule of law is returned on construction sites and to protect the community from paying more than it should for much needed public infrastructure,” Chief Executive Officer Wilhelm Harnisch said. “The promise to re-establish the ABCC was a key policy for the Federal Coalition and the main trigger for the 2016 double-dissolution election.  By returning the Turnbull Government, the Australian people have given an undeniable mandate to re-establish the ABCC. They have voted to say ‘no’ to bullying, intimidation and the actions of militant construction unions who think the law doesn’t apply to them. “The culture and behaviours of building unions, as documented in three Royal Commissions, are well outside of community standards. They are not the behaviours of normal unions, normal workplaces or normal people. They punish the community by increasing the cost of building community facilities and infrastructure by up to 30 per cent. 8

“Why should Australian families pay more for their schools and hospitals because of what is effectively a building union tax? Why should our community be denied the facilities that were highlighted as a priority by the electorate during the recent election campaign? “The Parliament now has the chance to stand up to building union bullies and stop the culture that is ingrained and institutionalised. “By voting to re-establish the ABCC, the Parliament will be sending a message that it will fight for the rights of women, small business, young people, apprentices and ordinary workers in the building and construction industry who regularly feel the brunt of building union tactics and illegal behaviours. These groups have a right to get on with the job and building unions have no right to bully, threaten and intimidate on a daily basis.

“The ABCC worked before to the benefit of the community, building workers, small contractors, apprentices and the economy and it will again.”

SA BUILDER OCTOBER – NOVEMBER 2016


XXX NEWS IAN MARKOS , CEO, Master Builders SA

Snapshot provides positive light for South Australian building

T

he latest approvals data provides a rare glimpse of optimism for South Australia’s building and construction industry, Master Builders SA says. Data from the Australian Bureau of Statistics shows the value of residential building approvals has increased 16 per cent to $3.047 billion for the year to July compared to the previous 12 months, and a solid 19 per cent higher than the State’s 10-year average. However, increasing costs appear to be driving the bulk of this good news story, with the number of approvals rising only 7 per cent to 11,723 approvals for the 12 months to July, a level 4 per cent above the State’s long term average. Master Builders SA Chief Executive Officer Ian Markos welcomed the positive results but cautioned it could not yet be construed as a long-term trend for the industry as a whole. “More is being spent on new home builds that we would expect on average, but that activity isn’t being shared across the sector. Our members are seeing more activity at the premium end of the market, while cost pressures are holding back activity at more affordable end,” he said.

“The concern for South Australia is that this represents another challenge for housing affordability at a time when the State Government has revised population estimates down. We need people in this State, and we need to keep them if we are to grow.” An increase in building approval numbers was positive, he said, especially when other States were feeling the pain as markets pulled back from historic highs. “The collapse of the mining boom can be seen in the 25 per cent fall in Western Australia’s approvals, and Tasmania continues to slump while the Eastern Seaboard continues to be driven by enthusiasm,” he said. “We are still battling the nation’s second highest unemployment rate, with more pain to come next year–so we will embrace these positive signs, and work with the Government to deliver new measures that will support housing affordability at a time when it will be needed.”

Value of south Australian building approvals Trend ($M) YEAR TO JUL-16

PREVIOUS 12 MONTHS

TEN YEAR ANNUAL AVERAGE

Residential - New

$2,658.1

$2,248.6

18%

$2,192.7

21%

Residential - Alterations, Addition

$388.4

$376.2

3%

$361.3

7%

Residential - Total Work

$3,046.5

$2,624.8

16%

$2,554.1

19%

Non Residential - Total Work

$1,997.5

$1,499.9

33%

$1,736.7

15%

Total Building Approvals

$5,044.0

$4,124.7

22%

$4,290.8

18%

Number of building approvals (12 months) Trend ($M) PAST 12 MONTHS

PREVIOUS 12 MONTHS

TEN YEAR ANNUAL AVERAGE

NSW

67,148

60,666

11%

41,647

61%

VIC

66,491

68,414

3%

52,978

26%

QLD

47,365

43,480

9%

36,876

28%

SA

11,723

10,943

7%

11,231

4%

WA

23,847

31,589

(25%)

24,554

3%

TAS

2,459

2,812

(13%)

2,686

8%)

NT

1,595

1,713

(7%)

1,426

12%

ACT

4,648

3,867

20%

3,785

23%

SA BUILDER OCTOBER – NOVEMBER 2016

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DEVELOPMENT STEPHEN MULLIGHAN , Minister for Housing and Urban Development

Bowden gains more apartments, retail and community spaces

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unique retail and community hub and a new apartment building fronting Park Terrace are among the latest projects planned for the award-winning Bowden development on the fringe of the CBD. The Ceres Market Shed Group, which operates the Market Shed on Holland, has been selected through an expression of interest to purchase Plant 3–a former Clipsal warehouse. Urban Development Minister Stephen Mullighan said the Plant 3 construction works could generate up to 20 full time jobs with ongoing employment for about 20 people once completed. “This is a great outcome for Bowden, with the highly regarded team behind the Market Shed on Holland working on an even bigger canvas to offer a range of South Australian food, wine, produce, arts and craft, music and retail,” he said. “Renewal SA had a great response to the expressions of interest for Plant 3, demonstrating the enthusiasm for ideas that will benefit the local community and the Bowden precinct more generally. “The range of community uses planned by The Ceres Market Shed Group will complement Plant 4 and become a drawcard for South Australia’s higher density urban infill site at Bowden. “These projects are yet more examples of the Government building South Australia by encouraging private development and investment to create jobs for South Australians.” The 1122sqm warehouse is planned to house an auditorium, arts hub gallery, a microbrewery or distillery and retail shops. The group is also finalising works on an adjacent former industrial warehouse, the 2000sqm Plant 4, with a boutique supermarket, followed by specialty shops and markets, to make it the heart of Bowden’s new retail precinct.

Ceres Market Shed Group’s Jonathon Kaitatzis said the deal was “an incredible opportunity”. “By purchasing Plant 3 we can now restore and enhance our neighbouring building. This enables us to fully integrate and connect both Plant 3 and Plant 4 spaces and incorporate crossovers between businesses, ideas, functions, entertainment and experiences,” he said. “We will be very mindful while developing this site to engage and complement the uses of Plant 4 whilst still creating a separate and unique identity for Plant 3. Our focus will remain on our 5-star green rating and delivering all the initiatives this requires.” Meanwhile Sydney-based developer Toplace has purchased a Park Terrace site with plans to build a six-storey, high-density apartment building. Toplace plans to team up with local architect Tom Vartzokas to build boutique apartments with uninterrupted views over the parklands, director Jean Nassif said. “South Australia’s property market is maturing, with homebuyers looking for new options, and this helped us decide that it was the right time to invest here. “We’re anticipating a great response to our apartments on Park Terrace and hope they are the first of many more projects in South Australia.” The Toplace development will be designed for a 5-Star Green Star rating and about 15 per cent of the project is expected to be affordable housing. Almost 250 homes have been built at Bowden across eight apartment and terrace developments and more than 400 homes have been sold since the project launch in 2012. Once complete the former Clipsal and Origin Gasworks site will be home to about 3,500 residents in more than 2400 homes, equating to about $740 million in private investment.

JAY WEATHERILL ,

Premier

First construction contract awarded for Adelaide Festival Plaza redevelopment

T

he transformation of the Adelaide Festival Plaza into a world-class destination in the heart of the city’s Riverbank Precinct will begin this month, after awarding of the first construction contract. Construction and development company Lendlease has won the approximately $21 million contract to lower Festival Drive, separating vehicle and pedestrian traffic. Premer Jaw Weatherill said the contract was “an exciting milestone” to create a new space for Adelaide. “Again and again Adelaide is singled out as one of the most liveable cities in the world and with projects such as this redevelopment we will further cement that title,” he said. “These works will kick-start the transformation of a long-neglected space into a vibrant destination for all South Australians to visit, spend time in and enjoy. “These critical early works to lower the Festival Drive will create the basis for a pedestrian-friendly space which seamlessly links the icon sites of the Riverbank Precinct, such as the Adelaide Oval.”

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The project will create a seamless pedestrian connection between the Adelaide Railway Station and Riverbank Footbridge, while also providing the foundations for the $300 million expansion of SKYCITY Adelaide including the construction of new loading docks for the InterContinental Adelaide, SKYCITY Casino and Adelaide Festival Centre. The casino redevelopment, together with the Festival Plaza upgrade and the Walker Corporation’s office building, retail area and car park upgrade are worth more than $900 million. Construction is expected to take approximately 12 months and, once the AFL season is complete, will involve the closure of the northern entrance to the Adelaide Railway Station. Select tenders are also currently open for the $21 million Northern Promenade works, which will include the creation of a new northern entrance to the Adelaide Festival Centre. The State Government estimates the projects will support an estimated 2500 jobs during construction and at least 400 ongoing jobs.

SA BUILDER OCTOBER – NOVEMBER 2016


DEVELOPMENT JOHN RAU , Planning Minister

Adelaide 30 – year plan update reflects modern living

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reating places people enjoy and want to use are at the heart of a draft update to the 30-Year plan for Greater Adelaide, Planning Minister John Rau says. A draft update to the plan builds on the existing plan’s principles, recognises the significant reforms introduced in the Planning, Development and Infrastructure Act 2016 and complements the Government’s Budget initiative giving stamp duty relief for off-the-plan dwellings. The update strengthens the plan’s focus on creating healthy neighbourhoods where walking and public life are encouraged and is about the future, Minister Rau said. “We must support the characteristics that consistently see Adelaide rated as one of the best cities in the world,” he said. “We have premium food and wine, pristine beaches and great environmental assets–all in close proximity. “The city has been revitalised in recent years with small licensed venues, modern apartment developments and well-designed public infrastructure such as Adelaide Oval. “The updated plan will guide growth and enhance the city. It will ensure the highest standards of design and liveability.”

The draft plan simplifies the 89 recommendations in the 2010 plan to six high level targets:

• Protecting our valuable agricultural and environmental lands by increasing infill from 70 per cent of new developments to 85 per cent. • Linking to public transport with 60% of new housing in proximity to quality services, up from 41 per cent. • Promoting active lifestyles by facilitating pedestrian and cycling corridors. • Increasing the proportion of residents living in “walkable” suburbs • Greening the city by increasing canopy cover. • Increasing the diversity of housing choice by 25 per cent. Minister Rau said the changes will support economic development and unlock investment, and will be implemented using the tools and levers created by the Planning, Development and Infrastructure Act 2016. The Act is a once-in-a-generation set of planning reforms which will be invoked in stages. Over the next five years, the government will streamline planning assessment pathways, reduce more than 20,000 pages of development plans to a statewide Planning and Design Code, facilitate greater community engagement in planning, and introduce SA’s first ePlanning system. Master Builders SA Chief Executive Officer Ian Markos welcomed the release of the draft update to the plan. “Business wants clear long-term guidance, so the plan provides some signposts that will help the sector understand the demands and trends that Government will support in future,” he said. “As with any plan, the implementation will create its own challenges. The update emphasises the proximity of social infrastructure to residences. At first glance, this would appear to demand to a new wave of infrastructure investment–which raises the question over how the Government will pay for that investment.

SA BUILDER OCTOBER – NOVEMBER 2016

“We need to commit to a lower tax base to attract and retain businesses and families. Although this draft plan looks solely to planning issues, we would hate for the broader economic environment to be overlooked as a means of filling these walkable suburbs. “We look forward to looking more closely at this draft to provide feedback from our members.” The draft update is available for public comment until Friday 21 October. It can be viewed at livingadelaide.sa.gov.au or through public libraries and select government offices.

Definitions used in the updated plan 1. 2. 3. 4. 5. 6.

Infill: Development within established urban areas, including Gawler township. Proximity to public transport: Within 400m of a bus route or 800m of a train, tram or O-Bahn Active lifestyle: Commuter trip that includes a walk of less than 2km or bicycle ride of less than 5km Walkable suburbs: Live within 400m of open space, 1km from a primary school, 800m from shops and in proximity to public transport. Green canopy: Will be measured by i-Tree Canopy software applied to local council areas. Diversity of housing choice: Detached housing expected to continue to be majority of housing but diversity through increased supply of flats/apartments, home units/town houses, retirement village units and semi-detached dwellings.

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DEVELOPMENT SUSAN CLOSE , Minister for Education and Child Development

First round of low-interest loans for non-government school upgrades now open

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he first round of low-interest loans for independent and Catholic schools has opened, part of a State Budget commitment to provide loans for non-government schools to upgrade their facilities. The loans are part of a $250 million State Budget commitment to provide loans to non-government schools that want to invest in infrastructure upgrades that lead to better educational and care outcomes. Education and Child Development Minister Susan Close said the loans would improve access to the “best possible education”. “We know that investing in both STEM and the early years is important to a child’s future and we have reflected our priority in the new loans program,” she said. “Research shows that 75 per cent of the fastest growing occupations are STEM-related, which is why our Budget includes a significant $500 million investment on schools focusing on STEM. “Work on these projects will generate jobs for local businesses and tradespeople and significantly stimulate the SA economy.” Association of Independent Schools of South Australia Chief Executive Carolyn Grantskalns said the commitment was good news for students and schools.

“We think that it is a really creative and innovative solution. It’s economically responsible because it’s a loans scheme but it will enable our schools to do a range of important capital works,” she said. The Department of Planning, Transport and Infrastructure will soon be contacting prequalified builders in categories two to four to begin discussion of how the projects can be allocated. Design briefs are currently being prepared in collaboration with individual schools, with the intention of bundling projects to allow economies of scale for selected builders. Master Builders SA has had early discussions with DPTI about the allocation of projects and the desire to get “boots on ground” by the end of the year. Members are advised to update their contact details through the SA Tenders website to ensure ready access to information sessions and the opportunities arising from this program.

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DEVELOPMENT BRENDON CORBY , Development and Technical Manager

Non-conforming cladding in commercial buildings: state of play and possible pathways

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he Lacrosse cladding fire in 2014, the Roubaix fire in France in 2012 and the Shanghai fire in 2010 have played a significant part in the way state and national building authorities are viewing the current regulatory framework. Two lessons are clear: more work needs to be done to improve checks and balances of the current Codemark process, and more attention needs to be paid to product substitution. Furthermore, will the advice being given to industry change and will the goal posts move after the event? What role and responsibility do the regulator and ABCB (Australian Building Code Board) play in the process?

Current situation

Under the National Construction Code, any building product or system must satisfy the performance requirements to comply by either: • Meeting the Deemed to Satisfy provisions of the Building Code of Australia (BCA/NCC); or • Being the subject of an appropriately-formulated alternative solution in accordance with Clauses A0.9 and A0.10. Evidence of Suitability will be required in accordance with A2.2 of volume one of the BCA/NCC. In accordance with CSIRO advice in April 2016, wall versus attachments need to meet the requirements: non-combustibility (AS 1530.1), fire hazard indices (AS 1530.3) and fire rated construction (AS 1530.4). On the other hand, if an attachment doesn’t affect the weather tightness or performance of the building, it only needs testing of the face of the cladding not the core material (1530.3). There is a significant difference between the two and if the advice to industry were to be changed by the ABCB or regulator, then significant implications would occur to those existing buildings which have been certified under the CSIRO scenario. Many questions will be asked about previous guidance, especially if core material requirements are to be met. Interestingly, the August 2016 ABCB release provided a regulation impact statement for consultation on non-compliant use of external cladding products on buildings. It provides three new options: option one with mandatory third party certification of external cladding products, option

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two with mandatory third party certification of composite panel products, including aluminium composite panels (ACPs), and option three with a package of measures intended to be cost-effective, including: • referencing AS 5113 in the BCA (e.g. whole of wall system testing); • further information to be provided to practitioners by the ABCB; and • greater enforcement by States and territories. Option one has great appeal as it would not discriminate between systems, although the way proof is requested might be verified by a standard form that complies with the BCA. This form should reference the particular building under consideration (with limits to qualification) and clearly state either a pass or fail. Builders would need to know what they are getting with a clear paper trail between manufacturer, supplier and installer to prove a seamless and unbroken chain of custody. By way of comment, testing of the whole walling system likely makes sense under AS 5113–bringing this in from option 3a–along with additional information and education material provided to practitioners by the ABCB (from option 3b).

Possible pathways

ABCB established the Codemark process, yet many options appear to be allowing the process to move further away from the body. ABCB has a clear role to play in ensuring Codemark documents are not ambiguous, that they provide “pass or fail” guidance. The question now will be whether previous guidance information–such as that provided by CSIRO fire safety guidelines–will continue to be acceptable or whether industry will face the consequences of a significant change of interpretation. Let’s hope the regulators and the ABCB get it right! Opinions and information in this article are opinion only and no responsibility or liability will be accepted by MBASA for content if relied without verification. Members are encouraged to contact Dev Tech on devtech@mbasa.com.au for information or advice.

SA BUILDER OCTOBER – NOVEMBER 2016


ECONOMY TOM KOUTSANTONIS ,

Treasurer

Welcome improvement in business confidence after State Budget

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usiness and consumer confidence improved after the State Budget was handed down, a major survey has shown. The BankSA State Monitor shows consumer confidence rose 6.5 points to 107.1, while business confidence improved 3.2 points to 103.1. Treasurer Tom Koutsantonis said the results were a strong indication that key Budget measures were welcomed by South Australian businesses. “We are backing small business to create jobs during this period of economic transition. Our $109 million job creation grants programme is designed to incentivise those SMEs with the capacity to grow to take on more staff,” he said. “Our huge investment in infrastructure over the next four years and our commitment, enforced through the Industry Participation Advocate, to use as many local workers and suppliers as possible should also give South Australian businesses the confidence to pitch for that work.” The State Monitor also reveals businesses are showing greater intent to create new jobs in the next three months. Other key findings include: • Businesses are showing more confidence about adopting new technologies • Sharp increase in business and consumer confidence in the North and West of the State • 18 to 24-year-old consumers are the most confident age segment.

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15


FEATURE

RUSSELL EMMERSON,

Director Policy and Communications

SECURITY OF : T N E M Y A P E H T G N I T T GE T H G I R E C BAL AN T

he Security of Payment Act–or the Building and Construction Industry Security of Payment Act, to give it full credit–is one of the most fundamental pieces of legislation affecting our industry. At its heart, it provides a process to break deadlocks over payments between parties. The State Government last year asked Retired District Court Judge Alan Moss to review the Act and his report was brief: there are reports of bad practices in industry, but there needs to be more evidence collected, perhaps backed by the Small Business Commissioner with greater capacity to resolve disputes and allocate adjudicators. No further action was taken until last June. Small Business Commissioner John Chapman released a Consultation Paper proposing a series of reforms, picking up options raised in the previous round of consultation but also raising matters identified by the Senate Standing Committee’s Inquiry into Insolvency in Australia’s Construction Industry. The collapse of several high-profile building companies warranted a broader look at the Act and its operations, he said.

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AVOIDING THE WRONG SOLUTIONS FOR THE RIGHT REASONS Master Builders SA has fully supported this consultation over the Security of Payment Act. Proposals were always bound to be raised, so it was better to discuss their effectiveness front-on to get a whole-of-industry perspective. Master Builders SA represents almost 1800 subcontractors and, together with our housing and commercial members, remains the only South Australian association that can claim to represent the breadth of the State’s building and construction industry. Our consultation reflected that, gathering responses from subcontractor, commercial contractor and contracts committees, undertaking individual interviews with leading industry participants and speaking with other Associations to ensure we had captured the essence of concerns. A whole of industry position was then formed by a meeting of our Industry Futures Working Group, with representatives of subcontractors, commercial contractors and contract specialists.

SA BUILDER OCTOBER – NOVEMBR 2016


The reality is that any single change is likely to flow through the entire supply chain. It will effect head contractors, subcontractors and secondary subcontractors. It will impact how work is done and whether it is done. It must reflect concerns that procurement, the increasing complexity of contracting and the transfer of risk are the biggest drivers relating to the problems currently faced by the industry. The policy developed through our consultation reflects this reality, and also an agreement between sectors as to the best way forward. The alternative is the delivery of a reform that holds up payments between participants or slows the resolution of disputes for a lack of understanding how the sector works. Master Builders SA is concerned that the wrong solutions might be delivered for the right reasons. Cost impact of proposals Industry is searching for ways to cut compliance costs, so any additional imposition needs to be able to clearly identify the benefits to be gained. There is real concern about the costs contained in many of the proposals. One head contractor estimated the implementation of all proposals could cost the company almost $250,000 in the first year alone through a new industry levy, additional legal fees, a need to employ and resource new staff and higher project costs. These costs would also likely impact subcontractors in their dealings with secondary subcontractors. The introduction of a complex Security of Payment regime specific to South Australia would also create additional red tape for interstate companies seeking to manage South Australian projects, despite calls for nationally harmonised legislation. At a time when negligible margins are driving tension and disputes between head contractors and subcontractors, Master Builders SA suggests the proposals for change must take into account the likely cost impact on industry participants to avoid proposals having negative repercussions that would limit jobs.

RESPONSES TO STAGE ONE PROPOSALS There is understandable support for the creation of a penalty for intimidation under the Act. Any behaviour aimed at discouraging industry participants from relying upon their legal rights is to be condemned. But it will be almost impossible to prove intimidation, and there remain questions about who will investigate. There also remains a difficulty in separating a commercial right not to deal with someone after a dispute from an act of intimidation, and concerns that the provision might be abused, thus polarizing relationships. Attaching a two-year jail sentence to such an uncertain provision raises alarm bells, and therefore cannot be supported. There is a strong argument for centralising the role of the Authorised Nominating Authority. Economies of scale can be developed, and education can be consistent. Master Builders SA recommends that the Magistrates’ Court or the newly-formed South Australian Civil and Administrative Tribunal (SACAT) take up the role of sole ANA instead of the Small Business Commissioner. This arrangement would allow the Commissioner to focus on actively advocating for small business without a risk that the behaviour might jeopardize adjudications under the Act or be seen by the Courts as giving rise to a reasonable apprehension of bias, as occurred in Built Environs Pty Ltd v Tali Engineering Pty Ltd & Ors [2013] SASC 84. Moving the function into either the Magistrates’ Court or SACAT would also take advantage of their existing registry systems for dealing with complaints, conciliations, and so save industry and taxpayers from the additional cost of establishing a new management system under the Small Business Commissioner.

SA BUILDER OCTOBER – NOVEMBER 2016

Master Builders SA supports the proposal to publish adjudications as this will clearly reveal whether any party is not entering the Security of Payment process in good faith. Publication will “get the rogues out of the industry on both sides”, as one subcontractor put it, and will also reveal the quality of adjudicators and need for further training. However, it was widely agreed that publication should be delayed until the earliest of the passing of 12 months or practical completion to avoid any interference with project management or the creation of a run of opportunistic claims in a situation where parties are working well together. In the worst case, immediate publication could create additional demands that would affect cash flow outside contractual terms, and thus impact the ability of secondary subcontractors to receive payments owed. Parties should also be allowed to request suppression of details where other matters, including Family Court matters, so require. Master Builders SA has long supported changes to the Act to allow for a Christmas shutdown period, and does not see any objection to such a reasonable change. The Small Business Commissioner’s Consultation Paper proposes a series of additional procedures for Government projects that would mandate the collection of statutory declarations regarding payment chains and the establishment of a separate investigations unit and hotline to alert the Commissioner to non-payments. This is already a requirement of many Government projects, and the current Code of Practice for the South Australian Constuction Industry outlines these expectations. More work is needed to reinforce the current system before a new system is added – and there is a very real risk that the new system would require such disclosures along the entire supply chain. The answer, then, lies in policing existing arrangements and finding why they aren’t working. Similarly, it was felt by almost all consulted that the call for a good behaviour test for builders should already be covered by prequalification. Any lapse in that regard should be reviewed at a departmental level rather than introducing another system of compliance. A proposal for a new Industry Code raised concerns for members around whether this would supersede existing agreements – including contracts, Security of Payment itself, and the Code of Practice. All provide alternative dispute resolution processes, and all are part of the agreed terms. Adding a new layer of administration now simply makes a mockery of the State Government’s push to repeal duplicate legislation. The push for improved industry education makes perfect sense. Master Builders SA continues to include education about Security of Information in its introductory courses and refers to it throughout its ongoing seminars, but practitioners are constantly surprised by the lack of knowledge of the Act and its operations. Clearly, more needs to be done. But industry avenues are best placed for delivery, so there is a strong case for working for a better outcome on this score.

RESPONSES TO STAGE TWO PROPOSALS Security of Payment works for its simplicity: there are clear time bars and requirements, all of which lead to a resolution. Real world problems don’t always exist within that framework. An issue may be overly technical, of such a high value, or involving such an extensive claim, that a five-day response period doesn’t recognise the underlying issue. Adjudicators, applicants and respondents should therefore be empowered to distinguish between simple and complex claims with differing time frames. There is a clear appetite for such a change now, and not in 12 months as recommended by the Consultation Paper.

17


FEATURE

Master Builders SA supports the Small Business Commissioner’s proposal to extend the Act’s operation against home owner builders, although there may be scope to limit its operation to “sophisticated” home owner builders, or else provide educational support for the sector. Putting subcontractor and head contractor statutory declarations as to payment online and on noticeboards was roundly rejected. Websites are seen as marketing tools, and notices are often ripped down, leaving contracting parties exposed for the actions of others. Far better, it was recommended to make all statutory declarations available upon request. A request, in that case, might underscore the need to resolve an issue rather than simply being downloaded from a website! Trust accounts have been raised in several aspects in this consultation paper. There is a proposal to hold disputed amounts in trust during adjudication. This is seen as being based upon a similar process in court disputes, although in those cases, parties are not required to pay the entire amount in dispute, only costs, and disputes extend for months, and not the days involved in an adjudication. Adding this requirement therefore risks freezing cash flow and leaving parties open to ambush claims that may prevent payment of other subcontractors and, where a subcontractor faces a claim, against secondary subcontractors. In short, it risks hurting the very businesses it seeks to assist. It would also demand a new capacity of the Office of the Small Business Commissioner at a likely cost to industry. Master Builders SA firmly believes trust accounts will not work for retention funds for projects over $10 million. Instead, the State Government should consider an underwriting facility to allow small businesses to provide bank guarantees or performance bonds in place of cash retentions. These facilities are less likely to be consumed by liquidators in the event of collapse, and builders are willing to pay a premium to avoid the administrative burdens of a trust account. This would protect small businesses when they are most at risk. The State Government is yet to respond to this proposal.

ALTERNATIVES TO BE CONSIDERED Principals are increasingly demanding bespoke contracts that have moved away from the standard contract (such as the AS2124 and AS4000 series of standard forms published by Standards Australia) to shift as much risk as possible to the private sector – a practice widely acknowledged within industry as being the root of many current issues. DPTI itself is developing its own amended form of standard contract that could represent a significant rejection of the brevity and risk allocation in standard form contracts, thus introducing higher risk along the contracting chain. This is introducing a fundamental change where risk is transferred to those who least understand it or can afford it. In particular, subcontractors at the end of the chain do not invest in expert legal advice and so put themselves at greater risk while accepting lower prices that fail to cover that risk, thereby increasing the risk of company collapses. Master Builders SA has recommended the Small Business Commissioner work with all State Government instrumentalities to advocate a return to standard contracts in order to support the State’s small businesses as this practice will not be resolved through amendments to the State’s Security of Payment legislation.

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It was noted in Master Builders SA’s earlier submission regarding industry reform that many of those businesses most affected by the collapse of Tagara Builders had ignored danger signs. In some cases they had also tendered on low prices to buy work, even though those prices would not cover their costs. There was also a misunderstanding as to the risk they were carrying based on certain contractual forms. This is particularly prevalent in the early stages of establishing a business when moving from an apprenticeship and into the commercial sphere. Requiring greater practical business knowledge for licensing is likely to substantially reduce this risk and develop stronger businesses for the future. Master Builders SA has also received an increasing number of complaints about subcontractors being undercut by companies employing sham contracting practices. Companies might treat their employees as contractors and so avoid paying superannuation and Workcover premiums – a practice that not only increases the fallout in the event of a collapse but also results in a major cost advantage that squeezes out companies attempting to employ South Australians and invest in their future. Although the laws governing this area are the responsibility of the Commonwealth, Master Builders SA believes the Small Business Commissioner has a strong role to play in protecting and supporting South Australian contractors against sham contractors. We look forward to working with the Office of the Small Business Commissioner to improve compliance in this regard.

CONCLUSIONS Master Builders SA is supportive of creating a stronger Security of Payment system to enable the speedy resolution of payment claims. We believe this is likely to be best achieved through a change of culture and improved education, and not through the introduction of criminal penalties and duplicated administrative practices. Members remain concerned about the potential cost impact of many proposals with a fear that the higher costs may result in a hastening of the very tensions that underlie this Consultation Paper. There are a number of proposed improvements that present less of an impact on commercial dealings and at a lower cost – Master Builders SA looks forward to working with the State Government to achieve the best outcome for industry and for taxpayers.

This is an edited version of a submission made to the Small Business Commissioner on August 19, 2016. Master Builders SA thanks representatives of subcontractor, head contractor and contract specialists who provided valuable feedback and information to inform this submission.

SA BUILDER OCTOBER – NOVEMBER 2016


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19


LEGAL SEAN RICHTER , Consultant, MBA SA Legal

Enforceable Undertakings: An Opportunity to Improve a Business Michael Bradbrook’s story about “Converting Adversity into Opportunity” outlines one member’s experience dealing with a SafeWork SA investigation into a workplace incident. That member business entered into an Enforceable Undertaking, and the article forms one part of that process that is intended to help other members who may experience a similar event, and to help the industry as a whole.

Enforceable Undertakings

The introduction of the Work Health and Safety Act 2012 (SA) saw a significant change in the approach of the South Australian Government to the issue of Work Health and Safety (WHS). The new Act significantly increased penalties but also introduced new and innovative approaches to prosecution in an attempt to enforce compliance while still punishing breaches. One new approach adopted was the concept of “Enforceable Undertakings”, an avenue that allows SafeWork SA to adopt flexibility when it comes to breaches of the Act while also enhancing the health and safety of workers. The approach is modelled on a Queensland device that has received a positive response from business and the regulator since being introduced many years ago. With the fines for breaches of the Act now ranging from $100,000 to $3 million, there are significant benefits to members who enter into Enforceable Undertakings. A business accused of committing a breach may enter into an undertaking, but it is neither a shortcut nor a cost-saving measure. What it does achieve is an opportunity to spend money on improving WHS within a business, an industry and community rather than simply handing over a sum of cash to the Government by way of a fine imposed by the Industrial Court. Only five Enforceable Undertakings have been undertaken in South Australia, and one of those was drafted by MBA SA Legal on behalf of a member.

The Commitments

Entering into an Enforceable Undertaking includes making a series of commitments to SafeWork SA, including that the behaviour that led to the alleged contravention has ceased and will not reoccur, and that WHS risks will be effectively managed in the future. There is also a commitment to providing WHS benefits to the industry and the general community.

The Benefits

A significant part of the Enforceable Undertaking is adopting strategies that will deliver: • workplace benefits; • industry benefits; and • community benefits.

Workplace Benefits

Signing up to an Enforceable Undertaking can focus the attention of a business on the underlying structure of its WHS systems. When things are going well, it is too easy to assume that the underlying WHS systems are up-to-date and appropriate simply because nothing has gone wrong. Unfortunately, not having an incident is not a guarantee that the systems are appropriate, and it is easy for WHS to fall out of date or to become redundant without anyone noticing.

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When Bondor — a metal fabrication operation at Salisbury North — was prosecuted after a worker injured his hand while operating an unguarded metal pressing machine, the company entered into an Enforceable Undertaking. The company carried out a comprehensive review of its WHS system to ensure it conformed with Australian Standard AS/NZS 4804:2001 and committed to an external audit at a cost of $34,350. In addition, the company reviewed and upgraded the guarding on all of its machines at an estimated cost of $72,800, and upgraded its intranet based WHS&E reporting system for a further $14,320. While the fines imposed by the Court might not have reached the total amounts spent by the company on internal improvements, it is most likely the company would have had to complete the above process in any case. Spending money on those improvements “instead of ” rather than “in addition to” a large fine is simply a good business decision.

Industry Benefits

By informing other industry participants of an incident and of the lessons learned from it, our workplaces are made safer. This sharing of knowledge with a view to reducing risks in the workplace underlies the regulator’s insistence that businesses reach out to their industry and provide a benefit. This industry benefit can be as simple as conducting, facilitating or funding research into a safety issue relevant to the industry, participating in or sponsoring education campaigns, or targeted publicity regarding the alleged breach.

Community Benefits

To some extent, the requirement for a community benefit in an Enforceable Undertaking plays a similar role to the imposition by the Court of a fine that goes into general public funds. Community benefits provided through Enforceable Undertakings have included the upgrading of playgrounds and sporting fields, providing speakers for community groups on the issue of WHS, and providing funds for personal protective equipment for community groups involved in construction-type projects. Regardless of how these are structured, they provide a community benefit to offset an alleged breach.

Did we “get away with it”?

Entering an Enforceable Undertaking avoids the prospect of a conviction but the undertaking itself is published on the SafeWork SA website and is a public document. It can be embarrassing but shows the steps taken to improve the culture of a company after a WHS incident has occurred. While avoiding a conviction is a good thing, Enforceable Undertakings should not be entered into lightly. They take a considerable amount of work, are capable of enforcement in court, and a breach of such an undertaking attracts severe penalties. But thet show one essential thing: your business is improving, and is safer, and that has to be a good outcome for everyone.

SA BUILDER OCTOBER – NOVEMBER 2016


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LEGAL MICHAEL BRADBROOK , Managing Director, Structurally Sound Engineering

Converting adversity into opportunity

I

n April 2013, an incident occurred on one of our worksites that could have resulted in an injury to our workers. SafeWork SA investigated, and issued proceedings against our company, Structurally Sound Engineering. However, following extensive discussions with SafeWork, a prosecution was avoided and instead our company has entered into an agreement that will see Work Health and Safety (WHS) improvements for our business, our industry, and the broader community. Structurally Sound Engineering is a well-established Adelaide business, specialising in the fabrication and installation of structural steel for residential and commercial buildings. The company maintains a fully operational workshop and fabrication facility and boasts a highly-dedicated site installation team with more than 150 years of combined experience in the industry. The incident at issue involved a steel beam that was being transported by lift from the ground floor to a higher floor. Part of the beam was protruding through the lift trapdoor and collided with the lift counterweight, which then caused an unexpected movement of the lift, beam and lift components. Fortunately, no one was injured. While we regret that the incident took place, we have converted the matter into an opportunity and are now committed to developing our existing, and implementing new, WHS procedures to prevent such incidents from occurring again. Following contact by SafeWork SA, we contacted MBA SA Legal to review our issue in detail. The MBA SA Legal team contacted SafeWork SA’s prosecution team and, after substantial communication, it was determined that an Enforceable Undertaking would be an appropriate and beneficial outcome. This was finalised last April. An Enforceable Undertaking is a written agreement, which is an alternative to a court decision and potential financial penalties. It outlines the 22

incident, how we responded to it, what steps we will take in order to prevent future WHS issues from arising, and projects we will pursue that will have WHS benefits within the company, the industry, and the community. This process has given Structurally Sound Engineering the opportunity to work with SafeWork SA towards a real solution for WHS improvements for the company, the industry and the general community. We have been able to invest in the development of our staff and business for some very real WHS benefits rather than spending those same funds on litigation or financial penalties. Since establishing our Enforceable Undertaking, we have taken several steps to improve WHS internally. Our employees understand how we are moving forward, and several have completed WHS courses. We have produced and published an Incident Summary and have had our Occupational Health and Safety Management System audited by the Master Builders SA. The results of that audit show we have minor areas that require attention, which we have begun working on. Our local community will also benefit from a significant contribution we have made to help Morphettville Park Sporting Club enjoy a new scoreboard at their football oval. It is essential that WHS hazards are properly identified and managed to minimise the possibility of harm in the workplace. This involves identifying hazards, conducting risk assessments, implementing adequate procedures and then reviewing these procedures to assess whether they are working as planned. Embracing the lessons we have learned has turned the challenges we have faced as a company into an opportunity for our business, our industry and our community.

SA BUILDER OCTOBER – NOVEMBER 2016


SAFETY, QUALITY & ENVIRONMENT IAN MARKOS , CEO, Master Builders SA

Tragic death highlights need for right answer not a knee-jerk reaction The tragic death of carpentry apprentice Clyde Norris has been felt by the entire construction community, Master Builders SA says. “This is tragic and the wider construction community mourns for the young man and his family,” Chief Executive Officer Ian Markos said. “The most important thing now is for everyone in industry to support SafeWork SA’s investigation. We need to know exactly what happened, and how to prevent it,” he said. “The residential construction industry has made significant safety improvements over the last decade, and today is one of the safest in the country. “But it’s tragically clear that it’s not safe enough–and that’s why we need to raise the bar. But we need to do the right thing, and not the first thing that is thrown out there in desperation.” Mr Markos pledged the support of Master Builders SA toward SafeWork SA’s investigation and finding ways of working with the agency and the State Government to improve safety in the sector. The best starting point would be to demand appropriate qualifications in the sector to deliver the professionalism that safety concerns deserved, he said.

“Too many safety officers have no qualifications when they face significant risks. There needs to be a marked acceptance of the need for appropriate qualifications for one of the essential tasks on every site. If there is low-grade risk, you may only need a diploma, but for demanding sites, a university qualification in hazard management should be essential. “Anyone who dismisses the need for true education and professionalism when it comes to safety need to be asked: why accept anything less.” Mr Markos said calls for hardhats on every site were missing the point. “We have members on the tools who are railing against blanket bans on protective equipment because it actually increases their risk because it obscures vision or impedes control,” he said. “A blanket ban may increase risk although it might please cowboys out there to push their own name. The industry is smart enough to come up with the right solutions, not just ride out without a full understanding of the full implications for safety on worksites.”

CHRIS GINEVER ,

SQE Manager

Residential construction site blitz The tragic death of an apprentice has sparked renewed focus on the standards of safety on residential construction sites. In meetings with Master Builders SA, SafeWork SA has flagged its intention to undertake a thorough review of Adelaide’s housing construction sites to gain a better understanding of safety shortcomings.

• Personal Protective Equipment (PPE): a risk assessment must be available to underpin use or non-use of PPE.

Inspection Blitz

• First Aid: a complete First Aid kit and properly trained and certified person must be available. • Other Areas: attention will also be paid to the tagging and testing of equipment, cleanliness of on-site toilets, traffic management and tripping hazards.

SafeWork SA inspectors will be given a target for inspections amounting to 90 sites visited across Adelaide each week for the next three months. The aim of these inspections is to identify compliance risks across the industry for reporting and further action. However, inspectors will be empowered to close down sites and issue prohibition and improvement notices for immediate risks identified during these inspections.

Areas for Attention

Inspectors have broad inspection powers and so will assess an entire site. However, the following areas have been identified as warranting close attention: • Safe Work Method Statements, Job Safety Analyses: workers undertaking any task must understand the process for doing that job that best minimises risk. Examples (for use as a guide only) are available at www.mbasa.com.au/safe-work-method-statements-swms. • Inductions: businesses must be able to show that the particular people working on site have been inducted. Online systems must capture all people on site. • Apprentices: particular attention will be paid to how apprentices are inducted, trained and supported. This is linked to the high risk they embody with their lack of experience. SA BUILDER OCTOBER – NOVEMBER 2016

• On Site Security: an assessment and risk management strategy must reflect the site security required for likely traffic and pedestrians. Sites close to schools may require higher security.

Concerns have already been raised regarding potential falls from heights and the dumping of construction materials and refuse in a manner that blocks access and egress to sites. Members should be aware that the identification of these issues should not be seen as exhaustive. In fact, members should instead take a fresh look at their entire operation or employ a third party to highlight any blind spots.

Best Practice

Master Builders SA is developing Best Practice guidelines to assist members improve internal systems and on-site processes. As a general rule, we recommend independent site audits every six months and a commitment to continuous improvement. Members are also encouraged to undertake relevant training, such as the Master Builders SA course on Safe Work Method Statements (runs next in September and December), to improve outcomes and show your commitment to on site safety outcomes. Membership Services can be contacted for training information and available resources to meet your business needs by calling 08 8211 7466. 23


TRAINING CHRISTINE STONE , Senior Manager, Industry Services and Education

Better training for a faster industry

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ocational development of the workforce in contemporary Australia is rapidly changing to adapt to Australia’s economic stability. How we work and the jobs we do are significantly evolving and the Vocational Education and Training (VET) sector plays a vital role in delivering key skills to attend to this ever-changing landscape. The VET sector is facing unprecedented challenges with the fall in enrolments and the drastic reduction in government funding. This is unlikely to change until well into 2019. The imminent expiry of the current National Partnership Agreement on Skills Reform is heightening the fear that VET will be branded with “middle child syndrome”, suffering a weakened position in the educational arena. This could see further reduction in funding availability. In South Australia, the unprecedented one-sided funding support offered to TAFE SA over private RTOs is continuing to destroy a student’s ability to choose the education provider that best suits their needs. Master Builders SA is also changing rapidly as we move to meet the needs of our members in relation to relevant training and programs, responsiveness and virtual real time information. Our move to a student management system that gives the power back to our students is refreshing. We welcome the chance to provide our students with the tools to enrol online, see results as they happen, and work directly with trainers. We aim to reduce the amount of email communication, moving instead to portals that allow stakeholders to control their interaction with us. Employers will be able to view training plans and outcomes of employees, and are able to enrol their employees and themselves directly into courses at a time that best suits the workplace. The new student portal provides the freedom to access tailored information whenever it is needed, in a way that informs each student what courses 24

they are enrolled in, when their courses are, where they will be held, what their results are (in real time), on a platform designed to improve information flow between trainer and student. There will be less paper to shuffle, and more information when you want and need it.

The pace of change is also affecting the entire building and construction sector. Building techniques and information that form the basis of training need to reflect this change to maintain a competitive edge. Our program selection is under review so we can directly target industry and member needs. Master Builders SA wants to represent the best the industry has to offer, helping members achieve the standard that is expected of a master builder. This is an ongoing task as we train the builders of the future in recognition of the achievements of those exiting the industry. We aim to provide relevant short courses, relevant qualifications and ongoing opportunities to keep up with changing technical demands to increase the professionalism of the sector. With the right policy settings the VET sector is well positioned to meet the workforce challenges posed by digital distraction and automation.

VET continues to play a key role in Australia’s building and construction workforce providing diversity, benefits and career pathways to advance competitiveness and global opportunity. SA BUILDER OCTOBER – NOVEMBER 2016


TRAINING XXX TOM NOBLE , Group Training Business Development and Field Coordinator

The best base for a building career

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onstruction apprenticeships continue to be the foundation of commencing a career in the building and construction industry. Master Builders SA is committed to developing the next generation of tradies by engaging with schools, trade training providers, industry networks and, most importantly, small to large contractors and their subcontractors. The relationship of Master Tradesman and the dedicated apprentice has a long history, whereby the skills and knowledge of a trade have been handed down from generation to generation. This history is often overlooked in an industry now focused on efficiencies and rapid delivery, however the value of an experienced and dedicated professional continues to be respected.

History

Master Builders SA was established in 1884 and, with more than 35 years of training apprentices, has the longest-serving construction apprentice group training organisation in the state. The history also supports a strong culture dedicated to training the next generation of builders, with many of our first successful apprentices in the early years now committed hosts to the next generation of apprentices. This loyalty provides the “peace of mind” host trainers rely upon, backed by the strength of a dedicated industry association. This is paramount to businesses of all sizes and scopes as the more we help our members, the more the industry benefits from that help.

Recruitment

The best apprentices begin with a clear focus on selection. We assess candidates so their potential and enthusiasm matches the demands of their chosen trade, improving their opportunities to not only complete their trade qualification, but complete with the knowledge they have a lifetime of resources backing them into a lifetime of career satisfaction and opportunities. Candidates come to us from schools all around the state, school training programs such as the CITB’s Doorways to Construction Program, private and state training providers delivering pre-vocational programs and, increasingly, from employers themselves. Employers are providing onsite work experience to candidates, who are then considered for an apprenticeship by being referred to Master Builders SA Apprentices. We are also seeing an increase in the number of adult apprentices. In many ways, these apprentices should be highly valued. They offer life experience, enthusiasm and a commitment to succeeding as a way of developing a career. Their maturity also has a strong impact on an appreciation for on-site safety. SA BUILDER OCTOBER – NOVEMBER 2016

For these reasons, Master Builders SA is continuing to support adult apprentices through direct relationships, ongoing advocacy and teaming with Government to reflect this new level of expertise.

Benefits of Hosting

Master Builders SA Apprentices currently employ more than120 apprentices in the trades of carpentry, bricklaying, painting and decorating, wall and ceiling lining, wall and floor tiling and solid plastering.

Finding the right host can be difficult. There needs to be a commitment to the training process along with an appreciation for the individual apprentice and their desire to learn. But hosts also gain significant benefits. They have the flexibility to hire apprentices for short or long term placements without having the obligation of an ongoing contract of training, and the complexities of employing an apprentice–administration tasks, award conditions, trade school fees, wages during trade school, together with managing a fair inclement weather policy–are all completed by Master Builders SA Apprentices, freeing hosts to do what they do best: build, and help the next generation. Master Builders SA Apprentices also provides an efficient online payroll system and experienced and qualified field officers to mentor apprentices and provide pastoral care where required.

Work Health and Safety

Workplace Health and Safety is a primary concern for every business and every employee. Apprentices are new to construction and so must be supported as they learn their new trade and an appreciation of their environment. As an employer of more than 120 apprentices, Master Builders SA focuses on developing a safe working environment for all. This means host trainers have the benefit of advice and support from our Master Builders SA Apprentices staff to ensure consistent safety on work sites, drawing upon our experts in Safety, Quality and Environment. This will keep the next generation safe–and instil a commitment to safety that will guard the apprentices they take on as they progress through the industry.

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Building Excellence Awards

Dream homes and the best new public buildings shine at Master Builders Building Excellence Awards

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SA BUILDER OCTOBER – NOVEMBER 2016


Building Excellence Awards SOUTH AUSTRALIA’S MOST OUTSTANDING RESIDENTIAL AND COMMERCIAL BUILDING PROJECTS WERE CELEBRATED AT THE 2016 MASTER BUILDERS BUILDING EXCELLENCE AWARDS.

S

outh Australia’s most outstanding residential and commercial building projects were celebrated at the 2016 Master Builders Building Excellence Awards. The atmosphere was one of fun and festivity as nearly 1000 invited guests and industry representatives enjoyed the awards ceremony transformed into an Oktoberfest style marquee. Traditional Bavarian slap dancers and bell ringers set a cheerful tone and yodeller “Hans” delighted the crowd with his amazing yodelling prowess. Comedian and MC Anh Do ensured spirits remained high throughout the evening and took great pleasure in announcing all of the award winners. Master Builders SA Chief Executive Officer Ian Markos welcomed guests and encouraged them to enjoy and celebrate their well-earned successes. “The quality of entries this year was excellent and epitomises what it means to be a true Master Builder,” he said. “The professionalism shown in every entry is a testament to the calibre of building and construction here in South Australia”. In a pre-recorded message, Premier Jay Weatherill commended the industry and recognized the awards as one of the most prestigious accolades a builder or contractor can achieve. Master Builders SA president Richard Bryant recognised the various challenges all builders and specialist contractors continue to face, but highlighted the industry’s strong ability to innovate and challenge existing standards.

SA BUILDER OCTOBER – NOVEMBER 2016

Metricon Homes was named Display Home Builder of the Year, with judges noting the company’s consistent performance and good builder-client relationships. South Coast Constructions was named Residential Builder of the Year with judges commending their “workmanship and attention to detail”. Lodge Construction and Building was named Specialist Contractor of the Year for its outstanding work on kitchens and bathrooms. The judges awarded BADGE Constructions (SA) the coveted Commercial Builder of the Year, saying the company set themselves apart by the consistency of achievement across all of their projects. Winning a Master Builders SA Building Excellence Award is the most prestigious accolade in the building and construction industry. It brings with it many commercial benefits and is a testament to truly outstanding building work.“workmanship and attention to detail”. Lodge Construction and Building was named Specialist Contractor of the Year for its outstanding work on kitchens and bathrooms. The judges awarded BADGE Constructions (SA) the coveted Commercial Builder of the Year, saying the company set themselves apart by the consistency of achievement across all of their projects. Winning a Master Builders SA Building Excellence Award is the most prestigious accolade in the building and construction industry. It brings with it many commercial benefits and is a testament to truly outstanding building work.

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BEST OF SOUTH AUSTRALIAN BUILDING AND CONSTRUCTION AWARDS 2016 MASTER BUILDER OVERALL WINNERS

Master Builders - Young Builder / Contractor of the Year 2016

WINNER

Master Builder of the Year Specialist Contractor 2016

WINNER

PAUL GLASSENBURY (G-FORCE BUILDING & CONSULTING)

LODGE CONSTRUCTION & BUILDING PTY LTD

The judges said Paul’s commitment to delivering quality projects was a key element to his success. “His attention to detail and customer service was exceptional. He has successfully delivered a wide range of challenging projects including complex heritage work within time and on budget,” they said. “His work associated with the disability sector was a particular standout. He has successfully integrated the principles of liveable housing and disability access into his projects to ensure clients needs were met. “Paul’s commitment to ongoing training and mentoring was impressive and his business leadership, staff development and team work was also outstanding.”

Lodge Construction & Building’s work on kitchens and bathrooms was outstanding, winning both Awards for Excellence for the company. The judges said the high levels of finishes made it difficult to fault the projects and execution.“Their commitment and attention to detail is clearly evident in every project they complete, and their contractor client relationships are noteworthy, as is their technical knowledge and craftsmanship,” they said.“They are to be commended on their outstanding level of workmanship and their excellent achievements.”

Master Builder of the Year - Display Home Builder 2016

Master Builder of the Year - Residential Builder 2016

WINNER

WINNER

METRICON HOMES PTY LTD

SOUTH COAST CONSTRUCTIONS PTY LTD

The judges were particularly impressed by Metricon Homes’ combination of client satisfaction and project delivery. “Metricon Homes performed consistently well across all of the categories they entered,” they said. “The team were able to clearly demonstrate their professional approach to construction, and pride in delivering the completed home to an excellent standard within a tight budget. “Internal finishes were of a high standard, and in particular the attention paid to tiling set outs and finishing. Independent verification of stages of construction and safety systems ensured an added layer of subcontractor and customer protection. “The team exhibited a very professional knowledge of construction excellence and the value for money their homes represent is also very good.”

The judges were particularly praiseworthy of South Coast Constructions’ project management. “South Coast Constructions worked hard to achieve the client’s brief and at the same time keep neighbours happy with a storey addition and other significant renovations in a distinctly ‘character neighbourhood,” they said. “The client is very happy with the outcome and very proud of what the South Coast team was able to deliver despite considerable on-site challenges. The excellent co-operation between client and builder resulted in South Coast Constructions delivering a home which is both a picture as well as energy efficient and functional to meet the clients’ needs and desires.

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SA BUILDER OCTOBER – NOVEMBER 2016


MASTER BUILDER OF THE YEAR — COMMERCIAL BUILDER 2016

WINNER

BADGE CONSTRUCTIONS (SA) PTY LTD BADGE Constructions (SA) was named Commercial Builder of the Year for its win in the category of Commercial / Industrial Building $10 million to $20 million, a commendation in the same category, and another commendation in the category of Commercial Refurbishment/Redevelopment over $5 million. The judges described the company as “a worthy winner in a very competitive category”. “Whilst all of the projects submitted in the commercial sector were of a very high level this year, consistency of achievement across all of their projects is what set Badge Constructions apart,” the judges said. “All of the work they completed was of an excellent standard and they regularly rose to overcome various challenges associated with the sites they worked on as well as the requirements of the various projects they delivered.”

Building Excellence Awards THIS YEAR’S BUILDING EXCELLENCE AWARDS ARE TESTIMONY TO THE DEPTH OF PROFESSIONALISM THROUGH SOUTH AUSTRALIA’S BUILDING AND CONSTRUCTION SECTOR, MASTER BUILDERS SA SAYS. The awards, celebrated in front of nearly 1000 people at the Adelaide Convention Centre, represent the vitality and talent of one of the State’s core industries, Chief Executive Officer Ian Markos said. “The building sector sits at the core of our community; it builds family homes, it builds the schools and hospitals those families need, and the offices and warehouses for the State’s businesses,” he said. “Tonight’s awards show the incredible depth within the South Australian building sector. We are seeing big national companies succeed, but we are also seeing smaller home-growth enterprises be recognized not for being South Australian, but for being the best in the business. “Growing South Australia’s economy will come down to one key factor: can we do something better than the rest of the country. Tonight’s awards show that yes, we can.” Chairman of Judges, Hardy Milazzo’s Graham Hardy, said that the extensive judging process had revealed some of the exceptional work done by the State’s building industry. “Every stage of judging these awards calls upon multiple judges as a check and balance against any one judge’s beliefs and interests in a process that is supported by, but independent of, Master Builders SA,” he said.

SA BUILDER OCTOBER – NOVEMBER 2016

“This is about building excellence and so deserve the hard work that goes into determining that standard beyond doubt. “This year’s awards reflect that professional desire to strive for excellence. The homes, the hospitals and business centres that have been created and the specialist works that have been named deserve that description and show that the industry is in good hands.” This year’s awards include recognition of McMahon Services’ refurbishment of West End Brewery, including its historic copper mash tun (Excellence in a Commercial Refurbishment over $5 million), the quality of SA Contruct’s cladding at the Flinders University Student Hub (Excellence in Cladding and External Finishes) and Bianco Precast’s finishes on stage 2 of Adelaide’s Ergo Apartments (Excellence in Concrete and Concrete Finishes). A project between Renewal SA and Rivergum Homes at Playford Alive was recognized for its Excellence in Affordable and Public Housing, and the fitout of the Hilton Hotel’s Ground Floor named for the achievement by Mossop Construction + Interior (Excellence in a Commercial Fit-Out).

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APPRENTICE OF THE YEAR

WINNER: LUKE DAVIS SPONSORED BY: Cbus

Scott Laferlita from Cbus and Apprentice of the Year Luke Davis

EXCELLENCE IN COMMERCIAL / INDUSTRIAL BUILDING $2M TO $5M

WINNER: DYCER CONSTRUCTIONS SPONSORED BY: WOMBAT STUDIOS

EXCELLENCE IN COMMERCIAL / INDUSTRIAL BUILDING UP TO $1M

WINNER: AUSCO MODULAR PTY LTD SPONSORED BY: PB VISUAL COMMUNICATIONS

WINNER: SHAPE AUSTRALIA PTY LTD SPONSORED BY: PRINT SOLUTIONS

Paul Montesi of PB Visual and Ausco Modular’s Simon Manser

Ashby Baron, Chris Doak from Print Solutions and Russell Tarca

EXCELLENCE IN COMMERCIAL / INDUSTRIAL BUILDING $10M TO $20M

EXCELLENCE IN A COMMERCIAL / INDUSTRIAL BUILDING $20M TO $50M

WINNER: BADGE CONSTRUCTIONS (SA) PTY LTD SPONSORED BY: CEMINTEL

Shane Dycer and Michael Brenzel from Wombat Studios

Mahesh Ghodke from BADGE and Heather Krombholz from Cemintel

EXCELLENCE IN A COMMERCIAL / INDUSTRIAL BUILDING $50M TO $100M

EXCELLENCE IN A COMMERCIAL / INDUSTRIAL BUILDING OVER $100M– LANDMARK PROJECT

WINNER: LENDLEASE SPONSORED BY: EMPLOYERS MUTUAL LIMITED

EXCELLENCE IN COMMERCIAL / INDUSTRIAL BUILDING $1M TO $2M

WINNER: HANSEN YUNCKEN PTY LTD SPONSORED BY: Cbus

WINNER: SARAH CONSTRUCTIONS PTY LTD SPONSORED BY: TAV PRODUCTIONS

Lyall Jackson, Dean Veldhuyzen, Mark Manetti from TAV Productions and Terry Jarvis

EXCELLENCE IN A COMMERCIAL FIT-OUT

WINNER: MOSSOP CONSTRUCTION+INTERIORS SPONSORED BY: MASTER BUILDERS INSURANCE SERVICES

Matthew Gooding, Alex Flint from Employers Mutual Limited and Henry Nielsen

Scott Laferlita from Cbus and Brooke Copeland

Vitor Serem, Ian Reeve, Master Builders Australia’s Wilhelm Harnisch and Quan Lam

EXCELLENCE IN A COMMERCIAL REFURBISHMENT/REDEVELOPMENT UP TO $5M

EXCELLENCE IN A COMMERCIAL REFURBISHMENT / REDEVELOPMENT OVER $5M

EXCELLENCE IN RETIREMENT LIVING / AGED CARE

WINNER: HANSEN YUNCKEN PTY LTD SPONSORED BY: CITB

CITB chief executive Steve Larkin, and Luke Crouch and James Beaven from Hansen Yuncken

30

WINNER: MCMAHON SERVICES AUSTRALIA SPONSORED BY: CHANNEL 9

Nigel Sutton from McMahon services and Alexa Borak from Channel 9

WINNER: LIVING CHOICE AUSTRALIA PTY LTD SPONSORED BY: ORIGIN

Renato Obbiettivo, Angela Trevor and Craig Eyles from Living Choice Australia and Bryan Hegarty from Origin

SA BUILDER OCTOBER – NOVEMBER 2016


EXCELLENCE IN CLADDING AND EXTERNAL FINISHES

WINNER: SA CONSTRUCT PTY LTD SPONSORED BY: CEMINTEL

Heather Krombholz from Cemintel, and Dino D’Ettorre, Jarrad Morgan and Jarrad Lever from SA Construct

EXCELLENCE IN SERVICES

WINNER: TYRONE ELECTRICAL SERVICES SPONSORED BY: LASER 3D

Christopher Carroll from Tyrone Electrical Services and Ian Sharkey from Laser 3D

EXCELLENCE IN BATHROOMS

WINNER: LODGE CONSTRUCTION & BUILDING SPONSORED BY: CAROMA

EXCELLENCE IN KITCHENS

WINNER: LODGE CONSTRUCTION & BUILDING SPONSORED BY: CAROMA

Construction Manager Anthony Sorrenti, Director Don Belperio, Alice Catford from Caroma and Operation Manager Dino Sordillo

Kitchen Supervisor Frank Esposito, Paul Yoong from Caroma and Director Don Belperio

EXCELLENCE IN CONCRETE AND CONCRETE FINISHES

EXCELLENCE IN AFFORDABLE AND PUBLIC HOUSING

WINNER: BIANCO PRECAST SPONSORED BY: SA BUILDER

WINNER: RIVERGUM HOMES SPONSORED BY: TRUECORE

Master Builders SA chief executive Ian Markos and Andrew Constantinou from Bianco Precast

Rivergum Homes managing director Victor Said and Truecore Bluescope’s Monica Clarke

EXCELLENCE IN MEDIUM DENSITY UP TO 5 DWELLINGS

EXCELLENCE IN A DISPLAY HOME $200,000 TO $250,000

EXCELLENCE IN A DISPLAY HOME $250,000 TO $350,000

WINNER: DUTHY HOMES PTY LTD SPONSORED BY: SUNDAY MAIL

WINNER: METRICON HOMES PTY LTD SPONSORED BY: ORIGIN

WINNER: METRICON HOMES PTY LTD SPONSORED BY: CSR

Sunday Mail’s Elvi Franzin and Chris Duthy of Duthy Homes

Bryan Hegarty from Origin and Metricon Building Manager Neil Bisset

CSR’s Bruno Albanese and Metricon Building Manager Neil Bisset

EXCELLENCE IN A DISPLAY HOME $350,000 TO $500,000

EXCELLENCE IN A DISPLAY HOME OVER $500,000

EXCELLENCE IN A CONTRACT HOME $300,000 TO $500,000

WINNER: GRANDVIEW FARM HOMES SPONSORED BY: SUNDAY MAIL

WINNER: SCOTT SALISBURY HOMES SPONSORED BY: MASTER BUILDERS INSURANCE SERVICES

WINNER: HOMES FOR EVERY LIFESTYLE SPONSORED BY: MASTER BUILDERS INSURANCE SERVICES

Sunday Mail’s Elvi Franzin and Andrew May from Grandview Farm Homes

SA BUILDER OCTOBER – NOVEMBER 2016

Angela Cooper from Scott Salisbury Homes and Quenten Watkins from MBAIS

Quenten Watkins from MBAIS and Danny Ahern from Homes for Every Lifestyle

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EXCELLENCE IN A CONTRACT HOME $500,000 TO $700,000

EXCELLENCE IN A CONTRACT HOME $700,000 TO $1M

EXCELLENCE IN A CONTRACT HOME $1M TO $1.5M

Exterior Dimensions director Russell Smith and Master Builders Australia’s Wilhelm Harnisch

Truecore Bluescope’s Monica Clarke and Finesse Built managing director Matt Beckwith

CSR’s Bruno Albanese, and Ben Johnson and James Rippon from James Michael Homes

CONTRACT HOME OF THE YEAR OVER $1.5M

EXCELLENCE IN A RENOVATION OR ADDITION UP TO $200,000

EXCELLENCE IN A RENOVATION OR ADDITION $200,000 TO $400,000

WINNER: EXTERIOR DIMENSIONS PTY LTD SPONSORED BY: MASTER BUILDERS AUSTRALIA

WINNER: APS HOMES SPONSORED BY: SA BUILDER MAGAZINE

WINNER: FINESSE BUILT SPONSORED BY: COLORBOND

WINNER: SPACECRAFT DESIGN BUILD PTY LTD SPONSORED BY: CITB

WINNER: JAMES MICHAEL HOMES SPONSORED BY: CSR

WINNER: SOUTHERN HOME IMPROVEMENTS PTY LTD SPONSORED BY: LASER 3D

APS Homes managing director Tony Schnaars and Master Builders SA chief executive Ian Markos

CITB chief executive Steve Larkin, and Martin Round, Henry Keene and John Lewis from Spacecraft Design Build

Southern Home Improvements director Adel Naguib and Michael Kennedy from Laser 3D

EXCELLENCE IN A RENOVATION OR ADDITION $400,000 TO $600,000

EXCELLENCE IN A RENOVATION OR ADDITION $600,000 TO $1M

EXCELLENCE IN A RENOVATION OR ADDITION OVER $1M

WINNER: SOUTH COAST CONSTRUCTIONS PTY LTD SPONSORED BY: TAV PRODUCTIONS

South Coast Constructions director Jamie Knott and Mark Manetti from TAV Productions

EXCELLENCE IN ENVIRONMENTAL AND SUSTAINABLE CONSTRUCTION RESIDENTIAL

WINNER: SOUTH COAST CONSTRUCTIONS PTY LTD SPONSORED BY: SUSTAINABILITY HOUSE

Matthew McCallum from Sustainability House and South Coast Constructions director Michelle Hall

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WINNER: GLASSHOUSE PROJECTS SPONSORED BY: WOMBAT STUDIOS

Angela Gianquitto and Don Iannicelli from Glasshouse Projects and Michael Brenzel from Wombat Studios

EXCELLENCE IN ENVIRONMENTAL AND SUSTAINABLE CONSTRUCTION COMMERCIAL

WINNER: MOSSOP CONSTRUCTION+INTERIORS SPONSORED BY: SUSTAINABILITY HOUSE

Tony Leonello, Sustainability House chief executive Jamie Golley-Boggerts and Jathin Balan

WINNER: URBAN HABITATS SPONSORED BY: CROWTHER BLAYNE MEDIA SPECIALISTS

Josh Semmler, Master Builders SA chief executive Ian Markos and Jock Merrigan

EXCELLENCE IN WORK, HEALTH AND SAFETY

WINNER: SCHIAVELLO CONSTRUCTION (SA) PTY LTD SPONSORED BY: EMPLOYERS MUTUAL LIMITED

Luke Steele from Schiavello, Alex Flint from Employers Mutual Limited, Ben Tonkin from Schiavello

and Jarvis Anderson from Aurecon Engineers

SA BUILDER OCTOBER – NOVEMBER 2016


YOUNG MASTER BUILDER / CONTRACTOR OF THE YEAR 2016

WINNER: PAUL GLASSENBURY SPONSORED BY: CBUS

Scott Laferlita from Cbus and Paul Glassenbury

MASTER BUILDER OF THE YEAR– SPECIALIST CONTRACTOR 2016

WINNER: LODGE CONSTRUCTION & BUILDING PTY LTD SPONSORED BY: SA GOVERNMENT

Frank Esposito, Dino Sordillo, Don Belperio and Anthony Sorrenti from Lodge Construction & Building and the Hon. Peter Malinauskas MLC

MASTER BUILDER OF THE YEAR– DISPLAY HOME BUILDER 2016

WINNER: METRICON HOMES PTY LTD SPONSORED BY: SA GOVERNMENT

Metricon building manager Neil Bisset and the Hon. Peter Malinauskas MLC

Commendations MASTER BUILDER OF THE YEAR– RESIDENTIAL BUILDER 2016

WINNER: SOUTH COAST CONSTRUCTIONS PTY LTD SPONSORED BY: SA GOVERNMENT

MASTER BUILDER OF THE YEAR COMMERCIAL BUILDER 2016

WINNER: BADGE CONSTRUCTIONS (SA) PTY LTD SPONSORED BY: SA GOVERNMENT

South Coast Constructions directors Jamie Knott and Michelle Hall and the Hon. Peter Malinauskas MLC

Bevan McDermott, Mahesh Ghodke, Tom Simpson, and Nick Abley form BADGE and the Hon. Peter Malinauskas MLC

EXCELLENCE IN A COMMERCIAL / INDUSTRIAL BUILDING $10M TO $20M

EXCELLENCE IN A COMMERCIAL REFURBISHMENT / REDEVELOPMENT OVER $5M

WINNER: BADGE CONSTRUCTIONS (SA) PTY LTD SPONSORED BY: CEMINTEL

Tom Simpson and Heather Krombholz from Cemintel

EXCELLENCE IN CONTRACT HOME $500,000 TO $700,000

WINNER: SOUTH COAST CONSTRUCTIONS PTY LTD SPONSORED BY: MASTER BUILDERS AUSTRALIA

Director Jamie Knott and Master Builders Australia’s Wilhelm Harnisch

SA BUILDER OCTOBER – NOVEMBER 2016

EXCELLENCE IN CLADDING AND EXTERNAL FINISHES

WINNER: TREWSTONE CONTRACTORS PTY LTD SPONSORED BY: CEMINTEL

WINNER: BADGE CONSTRUCTIONS (SA) PTY LTD SPONSORED BY: CHANNEL 9

Mark Trewartha and Heather Krombholz from Cemintel

EXCELLENCE IN A CONTRACT HOME $700,000 TO $1M

EXCELLENCE IN A RENOVATION OR ADDITION OVER $1M

Bevan McDermott and Alexa Borak from Channel 9

WINNER: ALAN SHEPPARD CONSTRUCTIONS PTY LTD SPONSORED BY: COLORBOND

Truecore Bluescope’s Monica Clarke and Jason Sheppard

WINNER: KRIVIC BUILT SPONSORED BY: CROWTHER BLAYNE MEDIA SPECIALISTS

Ian Krivicic and Master Builders SA chief executive Ian Markos

33


FEATURE

outside love your life

Australia’s love affair with entertaining has propelled strong growth in the home improvement sector over the years.

Now the backyards of thousands of homes across the country are embracing the latest trends in outdoor living solutions. Australian Outdoor Living Chief Executive Officer, Mr Chris Taylor, said home improvement and outdoor entertainment were increasingly popular past times for South Australian families. “Our homes are a reflection of, and tailored to, our lifestyle,” Mr Taylor said. “Australians love the outdoors, but the country’s often harsh weather can be a factor. More homeowners are now looking to enjoy the outdoors anytime throughout the year from installing café blinds and pergolas to protect from rain and the cold, to artificial grass and timber decking for summer enjoyment. “It’s a highly competitive industry, and to be successful, you need to offer the highest quality products and outstanding customer service.”

34

Outdoor Blinds Mr Taylor said outdoor blinds had become increasingly popular as homeowners looked to extend their living space. “By adding outdoor blinds to your existing pergola or patio area, you can create a whole new room,” he said. “Australian Outdoor Living is seeing more homeowners want to extend the amount of time during the year that they can utilise their outdoor living spaces. “South Australians in particular look forward to the hot summer nights and the opportunity to entertain friends and family in the great outdoors. Good quality outdoor blinds allow you to enjoy this lifestyle all year-round, not just over the three summer months. “Imagine open-air spaces, filled with light and unrestricted views, while providing privacy and protection from the wind and strong sun rays. There are products available to make these dreams a reality. “For unobstructed beautiful views, clear or tinted café blinds are the perfect choice. If privacy is what you are looking for, shade blinds would be the ideal solution.”

SA BUILDER OCTOBER – NOVEMBER 2016


PROJECT : PROFILE: ARCHITECT: BUILDER: CONTRACTOR:

THE PROJECT Located within Albany Heritage Park, Western Australia, the National Anzac Centre has been built to honour the Anzacs of the First World War. The striking building which appears to almost float atop Mt Clarence, provides panoramic views of King George Sound, from where the first Australian and New Zealand troops departed in 1914. Opened on 1 November 2014 by the Australian and New Zealand Prime Ministers to commemorate the 100year anniversary of the Anzac troops deployment. The building features large galleries, curtain wall windows, exhibition spaces, interactive multimedia displays, unique artefacts, rare images and film and outdoor observation areas. Fielders were commissioned by BGC Constructions to provide 180m2 of Finesse Nailstrip roofing and wall panels in COLORBOND® Woodland Grey, used as a main focal point of the building’s exterior wall. THE SOLUTION Finesse Nailstrip was chosen by Peter Hunt Architect to give the building its bold and gallant appearance, while allowing for simple and manageable installation required to achieve the building’s opening deadline.

Millennium

Interlocking Panel

The National ANZAC Centre Nailstrip Peter Hunt Architect BGC Constuctions AB Roofing

The architect’s impressive design was recognised in 2015 when the National Anzac Centre was named the state’s best Heritage Tourism Project at the Western Australian Heritage Awards. The building has also won two Western Australian Master Builders awards for Best Commercial/Industrial Building and Excellence in Roofing (Metal) in 2015. THE PROCESS The Finesse Nailstrip roofing and wall panels were installed by AB Roofing, their team fixed the panels onto a composite substrate of metal battens and timber joinery. The panels were delivered to site and then formed over three different angles, wrapping around the top and the bottom of the building. FIELDERS FINESSE Fielders Finesse consists of five versatile profiles that have been designed to bring a high end look to the roof and walls of projects across Australia. Consisting of Interlocking Panel, Nailstrip, Shadowline 305, Neo Roman and Millennium, each façade profile has a unique aesthetic appeal that adds the finishing touch to commercial and residential buildings alike.

Shadowline 305

FIELDERS BUILDING SYSTEMS Ideas to Shape the Future

1800 182 255 /// fielders.com.au

Neo Roman


FEATURE

Australian Outdoor Living has recently released its new range of Bella Vista Opaque Blinds, which are available nationally. Designed with the harsh Australian sun in mind, Opaque Blinds provide that extra escape and comfort on a hot summer day. When pulled down, the blinds create a whole new insulated room in the home, which is totally secluded. “For the highest satisfaction, it pays to invest in outdoor blinds manufactured here in Australia, from highend components with strict quality control expectations,” Mr Taylor said. “The addition of exterior blinds will not only enhance your lifestyle, but they will improve the look of your home and in turn, increase its market value.”

Artifical Lawns Below average rainfalls in South Australia, together with the busy lifestyles of homeowners, has seen an increase in the demand for artificial lawns. Mr Taylor said technology in artificial lawn has come a long way and made the product a viable alternative for gardens across the state Artificial turf is a natural-looking solution that will provide the perfect, lush green yard no matter the time of year. “Maintaining your garden can be difficult to juggle with work and family commitments, considering the time you would spend mowing, weeding, fertilising and watering it, not to mention the water bills, he said. “Feedback from families is that the benefit goes beyond the time and cost savings. Parents with children and pets like that there is no need for pesticides and chemicals in its upkeep, and no more itching from allergies or having to avoid the prickles.” New standards of excellence and innovation in artificial grass are entering the market. The latest products replicate the springy, supportive characteristics of natural grass whilst being able to survive harsh UV rays without fading. With the look and feel of natural grass, it is not only ideal for landscapes, but homeowners are using it for all outdoor areas– playgrounds, rooftops, pet areas, patios, and even to create backyard putting greens for golfing enthusiasts. The possibilities are endless. 36

Pergolas, Verandahs And Decking Australian Outdoor Living is in the process of introducing a greater range of products into its individual state markets in the coming months, launching pergolas, verandahs and decking into South Australia. Mr Taylor said the expansion would help to make Australian Outdoor Living a one-stop-shop for outdoor living solutions in South Australia. “Previously we were custom fitting outdoor blinds to existing pergolas and verandahs, but we can now offer a complete, turnkey package,” he said. Australian Outdoor Living can completely transform an entire backyard, starting with custom-built pergolas, carports and verandahs built to suit any shape, size or budget. Involving qualified tradespeople, it can handle everything for the homeowner including council approvals, paperwork, design and project management. “One of the little known benefits of a pergola or verandah is the way in which it can cool your home,” Mr Taylor said. “A strategically positioned pergola or verandah can help to stop the sun’s heat penetrating the outside walls of your home, helping it to stay cool and decreasing the reliance on environmentally unfriendly methods. “While paved patio areas are the traditional option, and still very popular today, we are seeing the trend shift towards incorporating more modern, timber decking for landings, ramps and pathways. “Adelaide’s climate is ideal for timber decking, as the heat evaporates residing moisture while the timber doesn’t absorb too much heat, making it always comfortable to walk on barefoot. “Timber decking also provides flexibility in your outdoor living area. Decking can be built over the top of almost any surface, regardless of how rugged the terrain is, whereas pavers are generally laid flat and on level surfaces.”

To contact Australian Outdoor Living in South Australia: Ph: (08) 8229 7000 Email: reception@aol-sa.com.au 589 South Road Regency Park, SA 5682 SA BUILDER OCTOBER – NOVEMBER 2016


The Job Accelerator Grant helps businesses create local jobs today and builds opportunities for tomorrow.

Jobs now – jobs of the future. South Australian businesses can register for a Job Accelerator Grant that pays you up to $10,000 for each new worker, helping you to employ more local staff. This $109 million investment is creating jobs for today and is forming the foundation for South Australia’s future jobs.

To find out more and register for a Job Accelerator Grant visit: revenuesa.sa.gov.au


2016 Master Builders SA Builder Magazine October-November  
2016 Master Builders SA Builder Magazine October-November  

The SA Builder Magazine is an established and trusted medium that delivers timely and reliable information to South Australia’s building and...