Master Builders Association of Western Australia 2019 Annual Report

BUILDING A BETTER INDUSTRY

ANNUAL REPORT 2018 — 2019 MBAWA Annual Report 2019

1

BUILDING A BETTER INDUSTRY

Published by MASTER BUILDERS ASSOCIATION OF WESTERN AUSTRALIA (UNION OF EMPLOYERS) PERTH PO Box 167 West Perth 6872 Level 3 Construction House 35 – 37 Havelock Street West Perth 6005 Tel (08) 9476 9800 mba@mbawa.com www.mbawa.com ABN 83 590 972 922 © 2019 Master Builders Association Western Australia.

No text, photo or graphic shall be reproduced, copied, published, broadcast, rewritten for broadcast or publication, or redistributed directly or indirectly in any medium without permission. No material or links or any portion thereof may be stored in a computer except for personal and non-commercial use.

Prepared by John Gelavis, Graeme Dix, Kim Richardson, Jason Robertson, Michelle DeGaltRohlf, Susan de Ruyter, Kelly Dewar-Matusik, Wayne Tardrew and Kanishka Kumarage Designed by Ben Curtis Printed by Optima Press, Perth

2

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

MBAWA Annual Report 2019

3

BUILDING A BETTER INDUSTRY

OUR VISION IS “A STRONG MASTER BUILDERS WESTERN AUSTRALIA FOR A STRONG BUILDING AND CONSTRUCTION INDUSTRY”

4

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

TABLE OF CONTENTS 7

OVERVIEW

9

PRESIDENT’S REPORT

11

EXECUTIVE DIRECTOR’S REPORT

23

MEMBERSHIP

25

PARTNERS

27

STRATEGIC PLAN

31

AWARDS

39

POLICY AND ADVOCACY

45

CORPORATE GOVERNANCE

51

STAFF MEMBERS

53

LIFE MEMBERS & PAST PRESIDENTS

57

REPORT FROM THE TREASURER

58

INCOME AND EXPENDITURE

MBAWA Annual Report 2019

5

BUILDING A BETTER INDUSTRY

Master Builders Western Australia A Year in Review 2018 - 2019

6

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Overview About Master Builders WA Is it possible for an organisation to change completely yet stay the same for more than 120 years?

As unlikely as it seems, the answer must be yes because that’s what the Master Builders Association of Western Australia has done.

When a group of builders gathered at a Perth hotel in 1898 to form the association, their purpose was to build a better industry.

Last year the association celebrated its 120th anniversary, still pursuing the same goal.

But even though the purpose of Master Builders remains steadfast, and our members continue to create the state’s greatest buildings, the association has also adapted to a changing world.

As the peak body for the industry, Master Builders has developed a broad influence, extending across the residential and commercial sectors as well as engineering businesses, principal contractors, subcontractors, manufacturers, suppliers and other industry professionals. Master Builders exists to serve their needs.

Advocacy is important and we have grown to become the leading voice for the construction sector.

In the beginning, the objective was to protect the industry from harm in the face of trials and challenges but now our advocacy takes a more positive slant. We engage with local, state and federal governments to ensure policies are practical and beneficial for the large section of the workforce and economy we represent.

The building industry has more full-time workers, more apprentices and more small business than any other sector. The total value of construction work done in the state last year was more than $24 billion.

Numbers like these show Western Australia needs a thriving building and construction industry so our views should be heard.

We take pride in having a strong understanding of construction issues across the state through our network of regional offices.

We also have the benefit of being independent and WA-based as well as offering national representation through Master Builders Australia.

The federal office in Canberra promotes the viewpoints and interests of the $220 billion building and construction industry at a national level. We represent the country’s second biggest industry, which employs more than a million people and trains more than 80,000 new tradies each year, so the voice of Master Builders Australia commands attention. WA Board member Robert Shaw serves as a member of the federation’s National Board and Chairman of its National Residential Builders’ Council.

Master Builders offers a wide range of products and services including quality industry information, legal

MBAWA Annual Report 2019

7

BUILDING A BETTER INDUSTRY

guidance and contracts, workplace relations, occupational health and safety, insurance, finance and technical advice.

With more than a century of experience in WA’s boom and bust construction cycle, we also know the importance of training.

As a Registered Training Provider, Master Builders strives to ensure skills don’t disappear during the hard times, leaving the state unable to build the new homes, roads, hospitals and other infrastructure needed when the good times return.

Fostering quality work standards is another way of assisting both members and the public. Master Builders awards focus on building excellence and are the number one recognition of expertise within the industry as well as a sign of top-class workmanship for potential clients.

Over the years, Master Builders has expanded its view across all matters relating to the industry. We have joined forces with Mates in Construction in a push to improve mental health, set up a young leaders’ initiative and established the Women in Building and Construction program to boost diversity in the traditionally male-dominated industry.

In the years ahead, the Master Builders Association of WA will continue to evolve and use past experience to guide future development.

8

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Report From the President Jason Kunkler Significant changes have happened at the Master Builders Association of Western Australia in the past year. Michael McLean retired after 22 years as Executive Director and John Gelavis took on the role at the end of 2018. John recently enjoyed his first anniversary in the top job and he has had a very positive impact on our organisation.

As Master Builders President, I would like to acknowledge our Immediate Past President Rob Spadaccini along with Vice President David Crothers for their leadership and dedication over the last three years and welcome new Vice President Phillip Kemp.

I would also like to welcome new Board of Management members Paula West (our first female builder board member) and Ray Kershaw and thank outgoing board members Michael Vermey and Jack Pleiter for their commitment and efforts.

Over the last 12 months, the Board has remained focused on continuous improvements relating to governance including professional development for all Board members through the Australian Institute of Company Directors, the adoption of the institute’s not-for-profit governance principles, improving board diversity, constitutional changes, reformatting Board papers and moving towards Board Effect software.

Further constitutional changes are being considered for 2020, which will provide greater opportunities for ongoing diversity and the expansion of competencies across the Board.

This year has seen some significant achievements by Master Builders in our advocacy focus, as we continue to position ourselves as the pre-eminent advocacy organisation in the building and construction industry in Western Australia. Highly successful advocacy campaigns at both a state and federal level achieved support for residential, commercial and civil builders together with subcontractors and suppliers.

Master Builders also secured a great victory for residential building members by leading a delegation of senior industry members to meet Treasurer Ben Wyatt with a proposal, endorsed by housing council, to expand the Keystart income limits and further stimulus for the industry. Having chaired this meeting, I was extremely pleased with the representation from our delegation and the response from the WA Government in supporting our proposal in the 2018/2019 State Budget and then again in late October.

Master Builders has without doubt increased its work with the government, using the media to communicate key messaging and positioning and we have worked hard behind the scenes with politicians and key decision makers on many important issues affecting our industry. These include security of payment reform, government stimulus for our industry, work health and safety reforms, industrial relations and infrastructure investment.

At a national level, I would like to thank our National Board Member Robert Shaw not only for his great efforts in representing WA in this forum but also his tireless work in chairing the National Residential housing council. During the year, Robert joined Master Builders Australia CEO Denita Wawn and President Hedley Davis along with John Gelavis to launch the Master Builders Australia federal election campaign in Perth. Master Builders made a financial contribution towards this campaign and worked with our national office to coordinate a strong media presence for the launch. It was a wise investment as the Strong Building, Strong Economy campaign delivered a clear position from Master Builders MBAWA Annual Report 2019

9

BUILDING A BETTER INDUSTRY

associations on the many important policy issues we support and those we oppose, which were proven to resonate with voters across the state and nationwide. This campaign enabled the retention of the Australian Building Construction Commission and ensured proposed changes didn’t proceed in relation to negative gearing and capital gains tax. Other major national events include the welcome back to parliament BBQ in Canberra as well as the highly successful Master Builders National Leaders Summit, which included speakers such as Prime Minister Scott Morrison, Federal Housing Minister Michael Sukkar, Federal Treasurer Josh Frydenberg and Deputy Prime Minister Michael McCormack.

Master Builders is well represented on all national committees, with volunteers and staff attending national meetings and John Gelavis attending executive director advisory committee meetings to ensure local views are promoted.

Great thanks and acknowledgement goes to our committees and councils who do a wonderful job of developing industry policies and services to support our members. Thank you to housing, construction, training and safety councils, branch and future leaders committees for the excellent advice, guidance and insights which inform our policy views, submissions and services.

Financially Master Builders continues to perform well, reporting a modest surplus this year despite the difficult market conditions. We continue to report a strong balance sheet and excellent audit results, which is a credit to our staff, our Finance Manager, Treasurer and the Board. Well done to all concerned.

I would like to thank all our alliance partners and sponsors. I would particularly like to express our appreciation for the 13-year relationship and support we have enjoyed with principal partner Bankwest.

We look forward to this continuing into 2020 and beyond.

I also extend thanks to my colleagues on the Board for their tremendous support and commitment over the last 12 months. The time and support each of them provides to members and the association is highly valued.

Finally, a huge thank you to our hard-working staff and loyal members for your support.

I wish everyone a very merry Christmas and all the best for a safe, happy and prosperous new year.

10

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Report From the Executive Director John Gelavis It has been a remarkable 12 months at the Master Builders Association of Western Australia as we strive to deliver the objectives of our strategic plan, develop a high-performance culture and ensure we are the pre-eminent advocacy organisation in the building and construction industry.

Over the year, it has been a pleasure to work closely with our President, Master Builders Board, staff, members, sponsors and stakeholders to deliver our objectives.

I would like to thank our President Jason Kunkler, from PACT Construction, for his great support and leadership on many important issues, particularly in relation to the Security of Payment Reform in the WA Building and Construction Industry report by John Fiocco.

Master Builders is in the second year of a four-year strategic plan, which focuses on the four pillars of organisational performance, industry advocacy and representation, membership and products and services. There have been great strides made in all these areas, but we continue to look for improvements in order to deliver better outcomes for our members and stakeholders.

To be the top advocacy organisation in the building and construction industry, we needed to understand how we were perceived and what was required to achieve our objectives. Through discussions with key stakeholders, it was clear opportunities existed to build on our already-strong reputation within government and the media.

We embarked on a bold advocacy program to build stronger relationships within government and fearlessly state our position in the media on a myriad of issues that affect our West Australian members at both a state and federal level.

On reflection, we were able to achieve our objectives and more because we secured outcomes at state and nationwide levels in both residential and commercial construction landscapes.

We established a program of hard-hitting boardroom advocacy sessions with Premier Mark McGowan, Treasurer Ben Wyatt and key ministers to push for outcomes required by our members. Additionally, we held frequent sessions with key staff within government as well as issuing submissions into numerous government reviews.

MBAWA Annual Report 2019

11

BUILDING A BETTER INDUSTRY

ADVOCACY WINS HOUSING STIMULUS — KEYSTART The first major success occurred when Master Builders secured important changes to the Keystart income limits as part of our 2019 State Budget submission. This was a significant win for residential building members doing it tough across the state.

In October 2018, Master Builders decided to stand up for members exposed to the downturn by commencing a dedicated campaign to secure stimulus for the industry, including ministerial meetings, 2019 State Budget submission, press releases as well as media statements in print, radio, TV and social media.

(L-R) Treasurer Ben Wyatt, Premier Mark McGowan, Master Builders WA President Jason Kunkler, Master Builders WA Executive Director John Gelavis This was an extremely challenging objective due to the condition of WA’s finances and focus of the McGowan Government on reducing the state debt. Master Builders met with Housing Minister Peter Tinley and other ministers to attempt to secure support for the recommendations in our budget submission. Master Builders also led a delegation of business owners to meet with Treasurer Ben Wyatt to present our analysis and stimulus

12

MBAWA Annual Report 2019

request, which involved changes to the Keystart income limits.

I am delighted Master Builders achieved this result, which was announced in the 2018/19 State Budget. The Premier, Treasurer and Housing Minister acknowledged the leadership of Master Builders on this issue, which is important to the industry and the home buying public.

Master Builders held further

meetings with Premier Mark McGowan, Treasurer Ben Wyatt, Attorney General and Building Minister John Quigley and Small Business Minister Paul Papalia at Construction House to discuss the many issues affecting the industry including stimulus, the industry advisory group on security of payments, indemnity insurance, government procurement, Building Management and Works, industrial relations and broader Master Builders policies.

BUILDING A BETTER INDUSTRY

SECURITY OF PAYMENT REFORM (FIOCCO REPORT) Master Builders was a key stakeholder in the Security of Payment Reform in the WA Building and Construction Industry report. As part of the industry advisory group, we were disappointed our recommendations were not adopted by John Fiocco because we believe they could adequately address security of payment issues. Master Builders was a leading voice issuing several media statements, news articles and held meetings with Building Minister John Quigley. As legislation gets drafted, Master Builders is working with Mr Quigley to develop laws that will assist all in the supply chain with payment issues.

Master Builders has assisted the Premier and government ministers with major announcements such as Infrastructure WA and Small Business Development Corporation Act 1983 changes. We have also been key stakeholders in important reviews and proposed legislative changes such as the Building and Construction Industry Training Fund five-yearly statutory review, Metronet Taskforce, Housing Industry Forecasting Group, Watercorp Customer Advisory Panel, Energy Efficiency and Construction Industry Consultation Group - Local Jobs Bill to name a few.

I thank the Premier and his WA Government for listening to the industry, developing our strong working relationship and working with Master Builders on the many important issues we face.

Master Builders continues to advise the state opposition and all political parties of our policies. Our focus remains on policies, not politics, to support our members now and in the future.

STRONG BUILDING, STRONG ECONOMY — FEDERAL ELECTION CAMPAIGN Following the local Keystart advocacy win, Master Builders joined Master Builders Australia in the federal election campaign in May 2019. On April 8, Master Builders Chief Executive Officer Denita Wawn and National President Hedley Davis, National and WA Board Member Rob Shaw, myself and other members officially launched the national campaign at a building site in West Perth.

The event was attended by our members as well a strong contingent of the WA media.

The Strong Building, Strong Economy campaign was designed to ensure that the issues that matter to our industry are front and centre and that all political parties and candidates know which policies our members support and oppose.

The policies were: •

• •

•

Backing small business: Our policies support small business and encourage fair competition and commercial conduct.

Boosting skilled and secure careers: Our plan to fix forecast skills shortages and increase jobs.

Building stronger and more prosperous communities: Measures to implement effective building regulations, address energy efficiencies and develop strategic infrastructure.

Balanced workplace laws and safe building sites: Government must retain the Australian Building and Construction Commission and improve workplace relations law to ensure harmonious, safe and productive workplaces, not just more ‘tick a box’ red tape.

To support the campaign in Western Australia, three digital billboards were secured in prime traffic locations to promote the key messages as well as advertising in The West Australian newspaper and

MBAWA Annual Report 2019

13

BUILDING A BETTER INDUSTRY

a comprehensive social media campaign. Other campaign components included website, free media, social media and paid advertising including online and printed material. The information was critical in showing the industry’s importance to the community and contribution to the economy.

Part of the paid advertising was three television commercials aired over the course of the election on union bullying and the Labor tax policy. Master Builders developed additional local content as well as sharing the national content on its social media platforms such as Twitter, Facebook, Instagram and LinkedIn.

(L-R) National Board Member Robert Shaw, Master Builders WA Executive Director John Gelavis, Master Builders National President Hedley Davis, Master Builders National CEO Denita Wawn

RETAIN THE AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION AND “STOP THE BULLYING” BY CONSTRUCTION UNIONS The focus of the advertising was around the key messages of “stop the bullying” and opposing the abolition of the Australian Building and Construction Commission. Union bullying continues to be a major issue on WA building sites, which drives up construction costs, forcing the community to pay more for schools, hospitals and other taxpayer-funded infrastructure.

RETAIN NEGATIVE GEARING AND CAPITAL GAINS TAX Another focus related to proposed changes by Labor. Cadence Economics was commissioned by Master Builders Australia to test Labor’s claims that its policy to restrict negative gearing to investments in new housing and halve the capital gains tax discount to 25 per cent on all properties would increase the supply of new housing and employment in the building industry.

The results of the modelling showed within five years of Labor’s property tax policy being implemented the construction of new housing would fall in Western Australia and building jobs would decline over the same period.

14

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

These policies are of utmost importance to our industry so it’s pleasing to see such a significant investment by Master Builders Australia and Master Builders WA. Again, I am pleased to report that our advocacy campaign resonated with the voting public because many seats across the country and Western Australia would have been greatly affected by these policies. Due to our strong advocacy, we were able to ensure there were no changes to capital gains tax and negative gearing as well as the retention of the building commission to make construction unions accountable for illegal behaviour on WA building sites.

Master Builders will continue its focus to lift its profile and build strong relationships within government with its inaugural welcome back to parliament barbecue at Parliament House in the new year. This event will be a relaxed evening for all returning parliamentarians and staff, enabling a closer and more collaborative approach to our advocacy efforts.

INFRASTRUCTURE FOCUS Master Builders has also been turning the focus on increasing infrastructure investment and boosting the economy. We have been advocating for both state and federal governments to work together to fasttrack the Perth City Deal and further infrastructure projects to kick-start growth, unlock housing, create jobs and get the economy moving.

(L-R) Master Builders Insurance WA State Manager Neil Gray, Housing Minister Peter Tinley, Master Builders WA Vice President Philip Kemp, Master Builders WA Executive Director John Gelavis MBAWA Annual Report 2019

15

BUILDING A BETTER INDUSTRY

GOVERNANCE NEW BOARD In relation to governance, we welcomed not only a new President in Jason Kunkler but new Board members Ray Kershaw and Paula West. I would like to thank previous members Jack Pleiter and Michael Vermey for their hard work. Additional thanks to outgoing President Rob Spadaccini, who remains on the Board as Immediate Part President.

PARTNERSHIP WITH THE AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS In alignment with our strategic plan, we have worked with the Australian Institute of Company Directors to develop a program that provides support to the Board in adopting best practice and aligns to the 10 principles of a not-for-profit organisation. This program has been completed and will be in place for all future Board members, which is an important investment in not only our Board but also our association.

Additionally, the Board has moved to the new Board Effect software program to deliver greater efficiency and promote a high-performance culture.

BOARD DIVERSITY I am pleased to report we have made strides in greater levels of Board diversity in both skills and gender.

We now have two female members Isla McRobbie from Jackson McDonald Lawyers and Paula West of Inspired Homes.

As an independent Board member, Isla brings a new skillset to discussions, especially around legal matters and governance. Another independent director, Grant Burgess is a partner of Ernst and Young and Master Builders Treasurer. Grant’s skills and expertise provide a greater depth of experience in all strategic financial matters facing the association.

We continue to demonstrate leadership in the support of women and greater diversity within our industry through the Women in Building and Construction (WinBaC) program. At an event this year at Crown Perth, we had more than 150 women and men hear from prominent business leader and gender diversity advocate Diane Smith-Gander. We are also participating in the Master Builders Australia Women Building Australia program, supported by the Commonwealth Government.

(L-R) Past Master Builders WA Executive Director Michael McLean, Master Builders WA President Jason Kunkler, Master Builders WA Executive Director John Gelavis, Past Master Builders WA President Rob Spadaccini 16

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

CORPORATE SOCIAL RESPONSIBILITY Master Builders continues to support Mates in Construction and Reflections Through Reality.

Mates in Construction was established in 2008 to reduce the high level of suicide among Australian construction workers. Mates is unique in fostering ownership and control of the program with the building industry.

A major Master Builders fundraising events is the Ride Against Suicide, where anyone with a motorbike in the WA building industry is invited to join our cruise through Perth. The aim is to raise funds and awareness for Mates in Construction and the event has grown in interest and attendance every year since its inception in 2014. The grand total for this year was $24,000.

Master Builders also supports Reflections Through Reality, a not-for-profit group established in 2015 to reduce the impact of asbestos on the community. Key objectives include supporting and connecting fellow sufferers of asbestos-related diseases, increasing awareness of the ongoing risks of asbestos in our community and promoting research into better treatments for mesothelioma sufferers.

CONSTITUTIONAL REVIEW We have embarked on a review process to ensure our constitution remains contemporary and aligns to the objectives of the association. The recommendations have been approved by the Board and will require confirmation at the annual general meeting. Further constitutional changes are planned for 2019/20.

IT SOFTWARE / INTEGRATION To ensure Master Builders can provide greater levels of service to our members now and in the future we have almost completed our full IT and software integration, bedding down our new CRM system, implementing our new XERO accounting system, Employment Hero, VETRAK integration with CRM and online Awards Force system. Future projects revolve around our new and exciting Board Effects governance software and document control systems. The completion of these new IT systems will allow greater efficiency for our staff and a heightened member experience.

RESEARCH COMMISSIONED We commissioned a detailed independent analysis of our current membership to understand how members felt about our performance including lapsed Master Builders members, prospective Master Builders members and consumers. I am pleased to advise that the report provided extremely positive feedback and information on how we can improve our support for members into the future. The report showed there is very

strong awareness of Master Builders’ range of products and services and usage of Master Builders’ services showed good engagement for practical resources of training, contracts and insurance, followed by advice.

Additionally, Master Builders has a very good net promoter score and members are satisfied with the knowledge and attitude of Master Builders staff.

Consumers have a positive opinion of Master Builders, it gives them confidence in a builder or tradesperson. Most consumers agree they would be influenced by Master Builders membership in hiring a builder or tradesperson and see an advantage in doing so.

This important research will form part of the planning framework for our next strategic plan, which will commence in 2020.

MBAWA Annual Report 2019

17

BUILDING A BETTER INDUSTRY

LIFE MEMBERSHIP — DAN PERKINS Named after Master Builders’ first President in 1898, the Robert Law Award is determined by Master Builders’ Board of Management after assessing the credentials of a variety of worthy candidates from across all areas of the building industry. Perkins Builders Managing Director Dan Perkins was announced as this year’s winner in front of more than 200 building and construction industry senior executives at the CEO Lunch at the Crown Ballroom.

As well as operating a successful building company, Dan Perkins has made a selfless and significant contribution to the industry through his volunteer work with Master Builders both in Western Australia and nationally. Among the roles he has taken on, Dan Perkins was Chairman of the South West committee for seven years, State President between 2003 and 2005 (the second youngest person to be elected), Master Builders Australia Board member between 2003 and 2018 and national President from 2015 to 2016.

Dan Perkins was also the Chairman of Bunbury TAFE for 20 years, contributing to education and training in the region.

(L-R) Master Builders WA Board Member Dan Perkins, National Board Member Robert Shaw, Master Builders WA President Jason Kunkler

AWARDS We successfully ran our extensive awards program across the state, recognising and rewarding excellence in the building and construction sector. Congratulations to all finalists and winners and the few who will join me in Uluru for the 2019 Master Builders National Excellence in Building and Construction Awards.

Thank you to our judges, who give up their valuable time to assist Master Builders conduct a prestigious awards program on behalf of members.

18

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

JOHN DOUST VALE I would like to pay a special tribute to Master Builders Life Member and Past President John Doust OA, who died in July. John had a huge influence on the building and construction industry in Western Australia and will be sadly missed.

Master Builders Life Member and Past President John Doust OA

NEW STAFF AND ORGANISATIONAL STRUCTURE We have recently made some senior executive appointments and updated our organisational structure as well as establishing a leadership group to ensure we establish a better platform to deliver on our strategic plan.

We have appointed Cathryn Greville as our new Legal Services Manager and Emilie Ryan as Industrial Relations Manager. They have extensive experience in the legal and industrial relations arenas, which will translate into quality support and advice for members.

Sharon Hoysted was appointed as our new Executive Assistant. She has worked in the corporate world and State Government in the ministerial offices of Mark McGowan and Eric Ripper as well as the East Perth Redevelopment Authority and Department of Education and Training.

MBAWA Annual Report 2019

19

BUILDING A BETTER INDUSTRY

The Master Builders WA Leadership Group was established to lead the organisation in its day to day operations and ensure members are provided the highest levels of service and support.

• • • •

John Gelavis (Executive Director) Graeme Dix (Business Director) Cathryn Greville (Legal Services Manager) Kanishka Kumerage (Finance Controller)

MILESTONE RECOGNITION PROGRAM We have established a new Milestone Recognition Program to ensure we acknowledge and celebrate our loyal and long-term employees. This was recently completed at an event where we announced the following milestones: • • • • • • •

Kim Richardson (25 Years) Geoff Bosustow (10 Years) Romina De Santis (10 Years) Linda Gibbs (10 Years) Kelly Dewar-Matusik (5 Years) Monique Milne (5 Years) Karl Millard (5 Years)

FUTURE FOCUS 2020 - 2022 As Master Builders looks to the future, the focus will be on supporting members. Additionally, we will aim to deliver the objectives set out in our 2018-2020 strategic plan, while continuously looking for improvement opportunities. Work on the new strategic plan will commence in 2020, in preparation for the next phase of growth for Master Builders.

Our advocacy will be strongly focused on current issues and legislation facing the industry, as well as completing a detailed policy manifesto in preparation for 2021 WA election.

We will continue to build a high-performance culture. We will be investing in our people to ensure they have the tools and resources to assist them in supporting our members.

THANK YOU On behalf of Master Builders WA, I thank our excellent staff, whose hard work, loyalty and commitment allows us to achieve our objectives and support our members.

Thank you to all volunteers such as committee members, council members, judges and Board members for their dedication to Master Builders and our industry.

20

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

MBAWA Annual Report 2019

21

BUILDING A BETTER INDUSTRY

Member Services Business support services helping members master the industry

22

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Membership Our Member Base The year has been a busy one for Master Builders WA in our efforts to support members throughout the state’s building and construction industry. The residential market has been a challenge, while the commercial sector has seen a shortage of new projects coming online, which ultimately affects the subcontractor market. However, we have worked extremely hard on membership engagement through our wide range of products and services to assist our members, their businesses and their staff. We are always in pursuit of new opportunities and offers to benefit our valued members.

In the second year of our fouryear strategic plan, our aim has been to maintain our current membership base and builder focus while also working on growth in the subcontractor,

trade and civil space. We have launched our Refer a Mate program, which will spread the word about the range of benefits offered by Master Builders.

This program will provide great support for new members and their businesses as well as rewarding our valued members.

It has become evident through our greater member engagement that most businesses have staff multi-tasking to assist their bottom line, which is paramount in these difficult times. However, in doing this we are finding that many members are not taking advantage of some of the day-to-day savings available through Master Builders, such as offers via Telstra, HBF, Officeworks, AHG, Biznostics and many more. We encourage all members to be vigilant in utilising these offers because sometimes the savings can

add up to more than the cost of annual membership. For any assistance, please contact the membership team.

The products and services which have been developed by Master Builders are also worth checking out because they are designed to be industry specific and beneficial to members.

Our team is always ready to assist members whether it’s through training courses, contracts, industrial relations and workplace relations advice, tech advice, industry-specific insurance, our legal advice hotline or our member discounts program.

As always, feedback and new ideas are welcomed by the membership team, so please engage with us.

MBAWA Annual Report 2019

23

BUILDING A BETTER INDUSTRY

Products Industry Information We take pride in the quality and range of information we provide, allowing members to respond fast to economic and regulatory changes. Our social media channels are updated daily and the Master Builders Express e-newsletter comes out weekly. Master Builder magazine is published quarterly and we also produce special awards magazines. We send member alerts on important issues and updates on state and national industry forecasting papers.

Contracts and Legal Advice Navigating construction documents can be daunting so we help members by providing a suite of standard building contracts for conducting business. We offer 60 contracts for residential and commercial projects plus supporting documents such as agreements and guides. Master Builders’ partnership with a law firm allows members 30 minutes free advice by phone or faceto-face with specialist lawyers.

Workplace Relations Master Builders members are backed by an experienced workplace relations expert who can help with employee relations, industrial advocacy, policies and procedures, enterprise bargaining agreements, redundancy, award provisions, superannuation and many other issues.

Occupational Health and Safety Our industry experts can offer specialist advice across the complete range of occupational safety and health obligations.

We provide customised services including safety mentoring, management plans and inspections.

Insurance MBA Insurance Services are experts in arranging the correct insurance for the building industry. We can put together personalised insurance for members based on 20 years’ industry knowledge. We have 22 products including market-leading construction works, public and products liability and home indemnity. Our aim is to offer exceptional protection at competitive prices.

Technical Advice Our technical support covers all aspects of housing and commercial construction from Building Code of Australia compliance to local authority issues. We can offer technical guidance on building standards and construction codes, strategic and statutory planning, regulations and approvals processes.

Training Master Builders is a Registered Training Provider (RTO 5101) with the Training Accreditation Council of Australia and our prospectus includes more than 200 courses. Our qualified industry facilitators provide high-quality training through nationally recognised courses which are constantly updated to meet industry needs and include the latest information. We offer the CPC50210 Diploma of Building and Construction (Building) qualification for those wanting to become registered builders in WA. Eligible courses may be subsidised by the Construction Training Fund and our bulk-billing arrangement makes education very cost-effective.

24

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Partners Sponsors, Supporters & Partnerships The generosity of our sponsors and partners throughout Western Australia has enabled Master Builders to create outstanding award celebrations and a dynamic events calendar throughout 2019. We thank all our supporters for their contributions.

We have had the pleasure of hosting inspirational speakers such as former Australian Foreign Minister Julie Bishop, business leader Diane Smith-Gander, the inspiring Olympic medallist Steven Bradbury and many others. We have been delighted by entertainer Tim Campbell and entranced by traditional Chinese dancers. We continue to enjoy connecting our members with forward-thinking innovators and industryspecific information. Of course, each Master Builders’ event has the added attraction of networking opportunities and the chance to interact with fellow industry members.

We are pleased to announce Master Builders charity partner Mates in Construction WA received an outstanding financial boost of $24,000 courtesy of the annual Ride Against Suicide. These valuable funds will assist Mates to continue their crucial work of saving lives within our industry.

The association’s state-wide awards program for building excellence broke records this year, with the commercial awards achieving an all-time high in both entries and attendees. At the apprentice awards, we applauded our first female winner Aly Harper. It was a privilege to share the celebration of exceptional success with the entrants, finalists and our winners.

As 2019 draws to a close, management and staff take pride in a year of successful partnerships. We also look forward to welcoming new sponsors who are keen to be associated with a dynamic business which is a leader in the building and construction industry.

MBAWA Annual Report 2019

25

BUILDING A BETTER INDUSTRY

Principal Partner

Insurance Partner

Partners

26

MBAWA Annual Report 2019

Finance Partner

Charity Partners

BUILDING A BETTER INDUSTRY

Strategic Plan 2018 - 2022 Consistent improvements across as all sectors of the business are being achieved as Master Builders moves forward with the strategic plan. Several new products have been developed, our service offerings continue to be enhanced and our members are engaging with the association more frequently than ever before.

As we diversify our membership to engage all businesses linked

to the building and construction industry, we are seeing growth in our subcontractor and civil membership. New products are being brought online to assist these members while we also maintain a keen focus on our core builder membership.

Regional members have responded to our support efforts by becoming more strongly engaged with Master Builders.

We expect further growth in

PURPOSE Master Builders WA is a membership-based industry association providing our members with highly valued, specialised building industry services through: • Strong Industry Advocacy and Representation.

• Trusted Advice and Information.

• Tailored and Relevant Products and Services.

• Quality and Relevant Training.

• Promotion of Construction Excellence.

• National Representation via Master Builders Australia.

• Career and Professional Pathways.

INTEGRITY

There is a great deal of hardship in the industry due to the worst decline in more than 20 years but the advocacy team is proactive and outcome focused in working with all levels of government. We will continue to challenge governments to make our industry more efficient and simpler to work in.

VISION

VISION A strong Master Builders WA to assist members in growing the Building and Construction Industry’s significant contribution to the economy and community.

this area as our new technology platforms come into effect.

MISSION PURPOSE CULTURE and VALUES

SUCCESS

SERVICE

MISSION Master Builders WA is the peak industry association for the building and construction industry.

CULTURE Master Builders WA will drive its vision with a culture that is: • Forward thinking and committed to the growth of the Building and Construction Industry.

• Orientated to high performance and achieving goals to ensure our success.

• Service based, driven by integrity and collaboration.

• Committed to evidence-based decision making.

• Strong in leadership of the Building and Construction Industry across all sectors.

COLLABORATION

MBAWA Annual Report 2019

27

BUILDING A BETTER INDUSTRY

ORGANISATIONAL PERFORMANCE — LEADERSHIP AND ACCOUNTABILITY Key Goals Governance

—

The board and councils are recognised for the leadership and governance of the organisation.

Business Performance

—

The organisation embraces a high performing culture to achieve a sustainable organisation.

The Master Builders Western Australia board, management and staff work hard to strengthen and expand the business. The board directs the goals each year and the current focus is on inorganic growth to provide further member benefits and boost the business.

INDUSTRY ADVOCACY AND REPRESENTATION — STRENGTHEN AND SUSTAIN Key Goals Industry Leadership

—

Members and stakeholders highly value the leadership provided to the industry.

Industry Advocacy

—

Master Builders WA is sought out by government and other stakeholders for its pre-eminence and professionalism in industry advocacy.

This area of the business has seen extensive change as our new Executive Director strives to position Master Builders WA as the premier industry advocate sought by governments when engaging with the building and construction industry. We are finalising a strongly evidence based and strategic policy modeling system to further boost stakeholder engagement.

MEMBERSHIP — DIVERSITY AND GROWTH Key Goals Membership Value

—

Membership Diversity

—

Our members are proud of and highly value their membership of Master Builders WA.

Our membership diversity will include growth in representation of sub-contractors.

Different requirements and views have arisen from our members as part of the shift towards a diverse membership base. In response, we are altering services and products to better suit the needs of participants in all sections of the building and construction industry.

28

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

PRODUCTS AND SERVICES — REJUVENATE AND GROW Key Goals Members’ Advice and Services

—

A growing number of our members prefer and advocate the professional and specialised advice and services of Master Builders WA.

Industry Product and Services

—

People in the industry seek out the professional and specialised products and service of Master Builders WA.

Master Builders is pleased to report we’ve made significant changes to our products and services as well as introducing new offerings requested by members. We endeavour to improve our products and service with the aim of assisting our members. New and more competitive offerings are under way in training, safety, insurance, finance, contracts (both hard copy and online) and legal. There is also significant change ahead in services such as legal guidance, industrial relations advice, workplace relations, safety advice and technical advice to help our members become stronger and more competitive in the industry.

REPORTING The Board continues to monitor the strategic plan on a quarterly basis as the association works towards its objectives.

Membership surveys are being held to monitor the awareness of, and satisfaction with, our outcomes.

MBAWA Annual Report 2019

29

BUILDING A BETTER INDUSTRY

Awards and Events Recognition for our members

30

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Awards Apprentice of the Year Awards and more Master Builders WA presented the Apprentice of the Year and Ric New awards in Perth at The Westin.

Carpentry apprentice Aly Harper became the first woman to win Master Builders’ top apprentice award and she has a great story to tell about completing a university degree majoring in German and launching a corporate career before doing an amazing turnaround and starting over in the construction industry.

2018 Apprentice of the Year winner Aly Harper Our regional awards have also been held in the Great Southern, Mid West, Broome and GoldfieldsEsperance areas and our hard-working judges have travelled across the state to look at the innovative and intriguing work of builders in far-flung cities, towns and remote communities. We have also concluded our Housing Excellence and Excellence in Construction awards.

We would like to extend our congratualtions to all winners and finalists of these awards.

MBAWA Annual Report 2019

31

BUILDING A BETTER INDUSTRY

Awards National Awards BEST YEAR EVER FOR WEST AUSTRALIAN BUILDERS AT THE NATIONAL AWARDS Multiplex has won Australia’s top commercial building prize as one of a record 12 national awards for WA builders at the end of last year.

A year of economic gloom for the state’s builders was brightened on 24 November 2018 when the Master Builders National Excellence in Building and Construction Awards were held in Adelaide.

Multiplex won three awards for the much-admired Optus Stadium and became the first WA business to win the nation-wide commercial builder of the year award.

Plenty of others had their moment of glory on stage as a dozen Sandgropers collected trophies in categories including display homes, retirement villages, restorations, energy efficiency and major infrastructure – making it Western Australia’s best year in the national competition.

And the winners are...

National Luxury Project Home — $2 to $3 million A Di Bucci & Son

The Esplanade, Mt Pleasant

National Lifestyle Housing for Seniors Award — Retirement Villages BGC Construction Pty Ltd

St Ives, Carine

National Display Home — under $250,000 Celebration Homes

The Ellington, Midvale

National Civil/Infrastructure Award — over $25 million Laing O’Rourke

32

MBAWA Annual Report 2019

Perth Stadium Station, Burswood

BUILDING A BETTER INDUSTRY

National Commercial Historical Restoration/Renovation Award McCorkell Construction (WA)

Fremantle Town Hall, Fremantle

National Display Home — $250,000 to $350,000 New Generation Homes

Oak Ridge, Baldivis

National Display Home — $500,000 to $1.5 million Novus Homes

The Paragon, Iluka

National Environment and Energy Efficiency Residential Building Award Nulook Homes in conjunction with Solar Dwellings and Step Beyond

Oak Ridge, Baldivis

National Medium Density — two to five dwellings Weststyle Design and Development

Camden Street, Wembley Downs

National Commercial Master Builder of the Year National Commercial/Industrial Construction Award — over $100 million National Entertainment and Recreation Facility Award Multiplex

Optus Stadium and Stadium Park, Burswood

MBAWA Annual Report 2019

33

BUILDING A BETTER INDUSTRY

2019 Bankwest Top WA Home 2019 Best Regional Home Paradigm Construction Yallingup

34

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

2019 Best Display Home Domination Homes Applecross MBAWA Annual Report 2019

35

BUILDING A BETTER INDUSTRY

2018 Bankwest Best Project Multiplex Optus Stadium and Stadium Park 36

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

2018 Best Regional Project Doric Contractors Pty Ltd Red Earth Art Precinct

MBAWA Annual Report 2019

37

BUILDING A BETTER INDUSTRY

Policy and Advocacy Looking out for our members and helping the community

38

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Policy and Advocacy Lobbying for the Industry COMMERCIAL The West Australian commercial sector has experienced a very stable industrial relations climate for some time and this is expected to continue for the next few years. Challenges to come in 2020 include a review of the West Australian industrial relations laws, which is currently under way, and major reforms of the WA safety legislative framework. These reforms will impact on labour hire arrangements as well as union right of entry. Master Builders will monitor these reviews closely to guard against unintended consequences for the industry.

The return of the Morrison Federal Government in May has seen the retention of the Australian Building Construction Commission (ABCC) which was a core election policy for Master Builders.

Master Builders continued to assist members develop their own workplace arrangements in 2019 to meet the local industry market conditions. It also continued to provide advice to members on industrial relations and assist in developing and getting non-union enterprise agreements approved by the Fair Work Commission.

Master Builders provided a comprehensive submission to the WA Government’s Wage Theft Inquiry, using wages audits conducted by the Fair Work Ombudsman’s office to reject the broad assertion that embedded wages theft is a business model. The Fair Work Ombudsman reports revealed general compliance by employers with deliberate employer underpayments the exception rather than the rule, unlike the union movement’s portrayal of the situation.

SAFETY Premier Mark McGowan announced his intention to introduce industrial manslaughter penalties as part of the WA safety law reforms in August. The absence of consultation with the business community by the Premier prior to the announcement was disappointing because he had undertaken to do so. Master Builders, along with other employer groups, stridently oppose industrial manslaughter on the advice of safety practitioners that it does not save lives at the workplace. This announcement followed the McGowan Government introducing the second highest safety penalties in Australia in October 2018 and the view of Master Builders is that these penalties need time to settle down and be assessed on their effectiveness. Master Builders is liaising with other state-based employer groups in opposing this move as well as with the WA Opposition.

Master Builders Safety continued to reshape member safety services in 2019 to offer relevant, user friendly, cost effective products having regard for the 2018 penalty increases and the McGowan Government potentially introducing industrial manslaughter in this term.

These services range from site safety inspections, site safety audits, safety management systems including safety management plans, supervisor safety mentoring programmes, in-house safety assistance for small contractors as well as accreditation for AS4801, AS9001 and including AS45001. Master Builders Safety is also assessing new safety services relevant to members moving into 2020. The Safety

MBAWA Annual Report 2019

39

BUILDING A BETTER INDUSTRY

Committee is highly aware of the needs of small and medium employer members when considering the safety services offered by Master Builders as an industry leader. For example, Master Builders is launching its interactive Tapped into Training innovative safety training modules in 2019 and the Safety Committee has been a major contributor to the content over the past 18 months.

MAJOR ADVOCACY During the past year, Construction Council has formulated a response to the following major issues confronting the building and construction industry: • Retention of the ABCC • The McGowan Government’s commitment to introduce security of payment measures before

the next state election • The McGowan Government’s intent to introduce industrial manslaughter • The McGowan Government’s Inquiry into Wages Theft • Draft Department of Finance Procurement Policy Supplier Pact impacting on providers of

suppliers of services and goods to WA Government, including building services.

RESIDENTIAL The residential construction sector has faced many challenges in 2019. Impacts continue to be felt from the state economy adjusting to the end of the resources boom, the fallout from the financial services royal commission, further reports by academics on building quality and low activity levels in the residential sector.

Let us look back over the year.

Advocacy was again a cornerstone of Master Builders activity. A vast amount of work was undertaken in engaging with the State Government on our policy mandates, understanding the issues facing industry regarding the current economic climate and the Government’s fiscal policy challenges and budget targets.

Progress has been made in the following key advocacy areas: • • • • •

40

Planning regulatory reform Building regulatory reform Housing affordability Housing indemnity insurance Building licensing/registration requirements.

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Master Builders has led the industry charge for fundamental planning reform in our state.

We have long recognised the impacts of our planning system on housing affordability and established policy mandates to assist in this matter of state and national significance.

We understand the negative compounding impacts of regulatory burdens on industry, with a fundamentally flawed statutory planning process, no accountability on planning professionals and inconsistencies within regulatory building departments.

Master Builders previously made a comprehensive submission to

the State Government’s Green Paper on planning reform. Many of our policy mandates were embedded in recommendations in the Green Paper, including fast tracking single dwelling planning applications, accreditation/ registration for town planners, further exemptions with R-D Code elements, electronic lodgement for planning applications and measures for consistency in planning interpretation within local government Pleasingly, we have seen progress this year with the Action Plan for Planning Reform.

Master Builders will continue to represent its members and industry in promoting the right

planning reforms.

Nationally, the Building Confidence report was a focus for many media outlets and publications, with this report and its implementation plan setting the stage for fundamental building reform in all jurisdictions.

Master Builders has engaged heavily with the State Government on building regulatory reform measures.

Our policies include reducing statutory time frames from 10 days to five days, a staged building permit approvals process, a proper process for amendments to building projects and electronic lodgement for building applications.

Master Builders developed our Easy Start proposal, which gained support from the Department of Planning, Department of Mines Industry Regulation and Safety and the WA Planning Commission. This proposal is a key element to achieving the reform outcomes desperately needed to reduce red tape and allow the building approvals to be dealt with in reasonable time frames. The first consultation paper on building approvals processes has been released, with many of Master Builders policy mandates embedded in it.

MBAWA Annual Report 2019

41

BUILDING A BETTER INDUSTRY

Master Builders is acutely aware of and concerned about housing affordability. In addition to planning reform impacting affordability, valuations and lending criteria are critical issues and we have continued to engage with leading financial institutions to address our concerns. We remain committed to effective levers for assisting in valuations.

In addition, Master Builders lobbied for an increase of the First Home Owner Grant, changes to Keystart criteria, stamp duty concessions and other stimulus measures for both the State Budget and mid-year budget review.

The issue of indemnity insurance is also a very high priority, with a considerable amount of work undertaken. We continue to lobby government for change.

Master Builders has long identified the need for builders’ licensing and registration requirements in our state to be reviewed and is actively progressing towards dealing with this matter. We await the release of the state response to the Building Confidence report, which will involve accountabilities for registered practitioners and contractors.

We welcome the introduction of the Guide to Standards and Tolerances WA 2019. Published by Department of Mines Industry Regulation and Safety, this guide assists industry to resolve disputes about the quality and standards of work. The publication was heavily influenced by Master Builders’ lobbying to have a WA-specific guide rather than a publication outside the WA environment.

Among the many policy directives being pursued, we continue to look at innovation and technology in the residential sector. We acknowledge the impact on our industry of changes to building methods, new products and emerging technologies which are being developed and likely to materialise soon. These will change our industry landscape and Master Builders is heavily engaged in keeping up to date, informing our members and adapting as necessary to these advances.

In summary, 2019 has not been an easy year for our industry but we have had multiple successes with our policy mandates and lobbying efforts and we will carry on listening to our members and advocating for action by government to ease the difficulties our members face. Thanks to our committees and Housing Council along with all our members who continually engage with us on the issues which affect our industry. Master Builders is ready to tackle 2020 head on.

42

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

MBAWA Annual Report 2019

43

BUILDING A BETTER INDUSTRY

Governance The inner workings

44

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Corporate Governance Boards, Committees & Councils Master Builders’ corporate governance is based on good faith, diligence and care in advancing the organisation’s vision, mission and values. The Board of Management is committed to providing strong leadership and governance to enable the association to fulfil its important role for members, industry and the community.

OFFICE BEARERS AND BOARD MEETINGS Master Builders’ Board is the association’s supreme governing body, overseeing management of the organisation. It comprises a minimum of seven and maximum of 13 members. Each year, the elected Chair and Deputy Chair of the construction and housing councils automatically take seats on the Board. Each council also elects one further Board member from among its elected councillors. A change from four to three seats per council was adopted this year, initiated by the Board to allow for greater diversity and

experience among its number.

The Immediate Past President is automatically a member of the Board. If the Treasurer is not elected from among the Board members, an external appointment can be made and the Board also can co-opt a further two people provided one is an association builder member.

The association’s President and Vice President are elected annually by, and from among, the Board members. As noted, the Treasurer can be elected from among the Board or be

an external appointment. If the President is also one of the three appointees from a council, he or she can resign from the council office and the council itself. The council, however, appoints a replacement to the Board.

The Board meets monthly except in January. It has approved a decision authority matrix governing levels of decision-making by members, Board, Treasurer, councils, committees and at various staff levels.

COUNCILS The association’s construction and housing councils are responsible for formulating policies and recommendations on industry issues. Each council comprises 12 councillors elected by, and from, the builder membership. Councillors serve two-year terms with half retiring (or standing for re-election) annually. councils also may co-opt members. The councils generally meet monthly.

COMMITTEES Master Builders currently has four regional committees each made up of 12 financial members. The committees, based in the South West, Great Southern, Goldfields-Esperance and Mid West-North West, enable the association to obtain data from across the state on issues affecting the industry and giving a truly state-wide position on any such issues. The committees also enable Master Builders to address regional issues at a local level.

MBAWA Annual Report 2019

45

BUILDING A BETTER INDUSTRY

Master Builders thus is in the best position to cover the entire state and all building and construction industry issues, deriving evidence-based information that government not only can rely on but recognise as a true industry-wide position.

The association also has training, future leaders and safety committees, each with 12 members and enabling Master Builders to have industry input into relevant issues across the state. The committees give Master Builders the ability to address such issues with new and innovative products to keep the industry ahead in these areas.

REPORTING REQUIREMENTS Master Builders is an incorporated body by virtue of registration under the WA Industrial Relations Act 1979 and furnishes an annual audited Financial Return to the WA Industrial Relations Commission in accordance with the Act. Master Builders is registered as a Registered Training Organisation (RTO code 5101) with the Training Accreditation Council (TAC) WA. RTOs are legislated to undergo five-yearly RTO renewal audits. Following an audit last year, Master Builders was approved for a further registration of seven years from December 2017. RTO reporting requirements include: •

Annual AVETMISS, to be submitted at the end of February every year, reporting VET students, who they are, where they study and what they study in Nationally Recognised Training conducted in the previous calendar year. (Diploma of Building and Construction and White Card are the two Nationally Recognised Training courses which are reported.)

•

Annual Quality Indicator Reporting, to be submitted at the end of June every year, covering the learner and employer feedback related to training and support services for Nationally Recognised Training courses conducted in the previous calendar year.

•

Annual Compliance Declaration submitted at the end of September every year for the previous financial year confirming that the RTO systematically monitors and evaluates training and assessment strategies and practices; and uses the outcomes of monitoring and evaluation to inform improvements in business and educational practice.

•

Annual reports to the Construction Training Fund indicating the number of CTF-subsidised people trained.

46

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

POLICIES AND PROCEDURES Master Builders has comprehensive policies and procedures in place across all worksites and regulating the practices of the board, councils, committees, staff and volunteers. Policies cover organisational governance, financial management, staff, administration and members, information technology and workplace health and safety.

The association is committed to protecting the privacy of personal information and always seeks to comply effectively with the Privacy Act 1988 and other laws regulating collecting, holding and administering such information. Master Builders also has a strong anti-discrimination policy.

COMPLAINTS Master Builders records complaints against, and by, members and attempts to help with prompt resolution. Intractable matters and those involving non-members are referred to relevant agencies or to professional advisers.

ETHICAL BEHAVIOUR As an industry leader, Master Builders encourages high ethical standards. The association’s code of ethics establishes a best practice guide by which members are expected to abide. In addition, the association has a comprehensive code of conduct governing board, council and committee members, management and staff.

2019 BOARD MEMBERS Back Row (L - R) John Ripp, Grant Burgess, Dan Perkins, Ray Kershaw, Michael van Dongen, Isla McRobbie, Steve McConkey

Front Row (L - R) Paula West, Phil Kemp, Rob Spadaccini, Jason Kunkler, Robert Shaw, John Gelavis MBAWA Annual Report 2019

47

BUILDING A BETTER INDUSTRY

Corporate Governance Boards, Committees & Councils BOARD OF MANAGEMENT — AS OF OCTOBER 2019 Jason Kunkler

Michael van Dongen

President

Construction Council Chair

Rob Spadaccini

Steve McConkey

Immediate Past President

Construction Council

Philip Kemp

Grant Burgess

Vice President Housing Council Chair

Treasurer

Training Committee Chair

John Ripp

Isla McRobbie

Construction Council

Board Member

David Crothers

Paula West

Construction Council Deputy Chair

Housing Council Deputy Chair

Robert Shaw

Ray Kershaw

National Board Representative

Future Leaders Committee

NRBC Chair

Housing Council

Dan Perkins Immediate National Past President

48

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Corporate Governance Boards, Committees & Councils CONSTRUCTION COUNCIL Chairperson Michael Van Dongen

Deputy Chairperson David Crothers

Members Jason Kunkler, Anthony Chillino, Basil Georgiou, Drew Gillespie, Shaun Hughes, Daniel Hunt, Troy King, Michael Lawson, Mark Lawton, Steve McConkey, Greg Mithen, Steve Okill, Mark Parish, John Ripp, Stephen Temple, Mark Thompson, Julian Timmis, Rob Torrance, Rory Vinnicombe, Martin Wisker, Kim Richardson

GREAT SOUTHERN COMMITTEE Chairperson Edwin McLean

Deputy Chairperson Brad Eastough

Members Emma Catterall, Brian Hoskins, Steven Henny, Ken Smith, Tammi Owens, Bill Terjesen, Haydn Glendenning, Matt Pocock, Linda Gibb

SOUTH WEST COMMITTEE

HOUSING COUNCIL

Chairperson

Chairperson

Sam Karamfiles

Philip Kemp

Deputy Chairperson Paula West

Members Basil Arasi, Jane Arnolda, Peter Bisby, Simon Cherry John Clifton, Jim Debaughn, Chris Del Paggio, Jeff Edgar, Paul Spadanuda, Liam Harpley, Mike Jinman, Ray Kershaw, Cliff Kearns, Luke Leeder, Ryan Lucev, Anthony Lumbaca, Jim Shannon, Glenn Smith, Michael Condelli, Tim Carson, Jay Mangano, Marc Wallis, Michael Vermey, Nabil Yazdani, Stuart Brown, Gino Bastow, Romina De Santis, Jason Robertson, Ryan Winston

Deputy Chairperson Justin Trewren

Members Rick Ruhen, Simon Hancock, John Buckingham, Charles Grist, Jason Brittain, Shaun Palfrey, Robert Maratea, Robert Kusal, Richard Bell, Shane Stirling, Geoff Bosustow

MBAWA Annual Report 2019

49

BUILDING A BETTER INDUSTRY

MID WEST – NORTH WEST COMMITTEE

FUTURE LEADERS COMMITTEE

Chairperson

Chairperson

Paul Mandosio

Matthew Carr

Members

Deputy Chairperson

Peter Willoughby, Andrew Crothers, Leanne Barndon, Janette Brennan, Aaron Campbell, Ross Conti, David Crothers, Jason Seppala, Paul Kerr

Jane Arnolda

GOLDFIELDS – ESPERANCE COMMITTEE Chairperson Brett Partington

Deputy Chairperson Glenn Briers

Members Marcus Boers, Gavan Dixon, Steve Drake, Colleen Horton, Ken Norton, Bobbi Norton, Dylan Pinchin, Angelo Sbizzirri, Nigel Byrd, Linda Gibbs, Karl Millard

SAFETY COMMITTEE Chairperson Steve Okill

Deputy Chairperson Chris Patten

Members Justayn Bean, Ron Grant, Joseph Mccarthy, Lisa Mitchell, Andrew Moore, Sarah Pettit, Paul Rees, Geoff Slocum, Brent Stewart, Stephen Temple, Miles Tilzey, Garth Unger, Kim Richardson, Jess Sethi, Michelle DeGalt-Rohlf, Nikolas Hladin, Ron Grant, Andrew Moore, Darren Ridley 50

MBAWA Annual Report 2019

Members Michael Agostino, Ray Kershaw, Ryan Dixon, Paul Fares, Laughton Savage, Ryan Secola, Pema Shailan, Luka Manencia, Gavin Armstrong, Alysia Harper, Romina De Santis, Jason Robertson, Ryan Winston, Angus Chapman

TRAINING COMMITTEE Chairperson Philip Kemp

Members Adam Smith, Paul Goodheart, Elaine McGrath, Dean Pearson, Ryan Winston, Jess Sethi

BUILDING A BETTER INDUSTRY

Staff Members Metro and Regional Staff Head Office Staff Executive Director

John Gelavis

Business Director

Graeme Dix

Housing Director

Jason Robertson

Construction Director

Kim Richardson

Financial Controller

Kanishka Kumarage

Accounts Assistant

Eva Xu

Legal Services Manager

Cathryn Greville

Industrial Relations Manager

Emilie Ryan

Marketing & Partnerships Manager

Kelly Dewar-Matusik

Communications Coordinator

Susan de Ruyter

Technical Advisor

Romina De Santis

Events Manager

Monique Milne

Events & Marketing Administrator

Jenny Sophian

Marketing Administrator

Suki-Jane Marston

Junior Graphic Designer

Ben Curtis

Sales Manager

Wayne Tardrew

Membership Consultant

Karl Millard

Membership Assistant

Daiane Clemente-Camilo

Membership Assistant

Cheyanne Day

Training Manager

Jess Sethi

Training Compliance Coordinator

Tania Sawyer

(Maternity Leave)

(Maternity Leave)

MBAWA Annual Report 2019

51

BUILDING A BETTER INDUSTRY

Training Administration Officer

Angela Kinsella

Training Administration Officer

Marissa Baviah

Senior Safety Coordinator

Michelle DeGalt-Rohlf

Safety Coordinator

Nikolas Hladin

Student Builder Liaison Officer

Kellie Szczepanik

Office Manager

Helen Bologa

Executive Assistant

Sharon Hoysted

Receptionist

Carolyn Lendich

MBA Insurance Services WA State Manager

Neil Gray

Senior Accounts Manager

Brian Martinovich

Senior Accounts Executive

David Coomblas

Regional Staff Mid West-North West Branch Manager

Paul Kerr

Administration Assistant

Danica Saunders

South West Branch Manager

Geoff Bosustow

Administration Assistant

Shannon Scott

Great Southern Branch Manager

Linda Gibbs

Administration Assistant

Jenny Hewitt

Goldfields-Esperance Branch Manager

Linda Gibbs

Membership Consultant

Karl Millard

52

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Life Members Past and Present D N Perkins

H B Neil

McK Mitchell

H F Mainwaring

R L Torrance

J B Hawkins

W M Rivett

R L Greaves

L A Henderson

C Baggetta

L F Bennett

V T Edwards

D B Retallack

T Matyear

A Doubikin

J M Mitchell

A J Pepperell

R J Davies

R A Doubikin

T J Wood

K I Brine

Past Presidents 2016 — 2018

G R Spadiccini

2014 — 2015

J G Ripp

2011 — 2013

R B Shaw

2008 — 2010

G B Allingame

2006 — 2007

S D Peck

2003 — 2005

D N Perkins

2002

K A Sale

2000 — 2001

J M Mitchell

1998 — 1999

R Sputore

1995 — 1997

W M Rivett

1994

H P Marson

1992 — 1993

D B Retallack

1990 — 1991

L F Bennett MBAWA Annual Report 2019

53

BUILDING A BETTER INDUSTRY

1988 — 1989

R A Doubikin

1986 — 1987

R M Torrance

1984 — 1985

L M Lilleyman

1981 — 1983

T L Oxley

1979 — 1980

G L Allen

1977 — 1978

R L Greaves

1975 — 1976

K Simpson

1973 — 1974

A C Rocher

1971 — 1972

McK Mitchell

1968 — 1970

J L Doust

1966 — 1967

T Matyear

1964 — 1965

L A Henderson

1962 — 1963

K I Brine

1960 — 1961

V T Edwards

1958 — 1959

R J (Jack) Davies

1957

J B Hawkins

1955 — 1956

R H Lilleyman

1953 — 1954

W L Brine

1951 — 1952

L F Sandwell

1949 — 1950

J A Smallwood

1947 — 1948

A James

1945 — 1946

J B Hawkins Jnr

1943 — 1944

H A Doust

1941 — 1942

E Allwood

1938 — 1940

W Fairweather Jnr

1935 — 1937

W L Brine

1933 — 1934

R A Gamble

54

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

1931 — 1932

J Totterdell

1929 — 1930

C W Arnott

1927 — 1928

H C Pitman

1924 — 1926

L F Atkins

1921 — 1923

F E Sedgley

1919 — 1920

W Fairweather

1918

P Barrett

1916 — 1917

M L Lloyd

1914 — 1915

J B Hawkins

1912 — 1913

S White

1910 — 1911

J D Sanders

1908 — 1909

S B Alexander

1906 — 1907

S T Anderson

1904 — 1905

W H Vincent

1898 — 1903

R O Law

MBAWA Annual Report 2019

55

BUILDING A BETTER INDUSTRY

Finances How we are tracking

56

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Report From the Treasurer Grant Burgess The 2018/2019 financial year has been the most challenging and difficult I have encountered as Master Builders WA Treasurer. However, the good news is that the association achieved a surplus of $49,930 for the financial year.

Although we expect the financial downturn to continue throughout 2019/2020, we have budgeted for a surplus of $67,318. The association is committed to running a balanced budget and ensuring costs don’t exceed revenue.

Despite the challenging and uncertain times the building and construction industry faces, the association is still in a strong financial position with $19.3 million of net assets.

Butler Settineri have completed their audit and have confirmed that the accounts represent a true and fair representation of Master Builders’ financial situation. They also provided good feedback on the great work Financial Controller Kanishka Kumarage and his team do.

Kanishka and his assistant Eva Xu are diligent and committed to ensuring the association’s accounts are properly maintained and strong financial governance is in place. On behalf of the Board, I thank them for their tireless efforts and commitment to Master Builders.

As the first independent Treasurer of Master Builders, I continue to enjoy my involvement with the building and construction industry. I have learned a lot and met many passionate and professional Board members and staff.

The Master Builders Board has been extremely supportive of my role as Treasurer and it is a privilege to work alongside them.

MBAWA Annual Report 2019

57

BUILDING A BETTER INDUSTRY

Income and Expenditure For the period ended 30 June 2019 2019 Revenue

2018

2017

$7,664,437

$7,308,624

$7,494,160

-$7,616,507

-$7,009,696

-$7,005,299

Operating Surplus from ordinary activities

$47,930

$298,928

$488,861

Other Comprehensive losses for the year

-

-$150,000

-$11,384,516

$47,930

$148,928

-$10,895,655

Accumulated Surplus at 1 July

$12,118,145

$11,969,217

$11,480,356

Accumulated Surplus as at 30 June

$12,166,075

$12,118,145

$11,969,217

$310,196

$344,711

$919,037

$1,185,703

$685,536

$454,312

$21,465

$24,631

$22,150

$1,517,364

$1,054,878

$1,395,499

Investments

$120,000

$120,000

$120,000

Fixed Assets

$21,350,248

$21,675,115

$21,634,161

Total Non-Current Assets

$21,470,248

$21,795,115

$21,754,161

$22,987,612

$22,849,993

$23,149,660

Expenses from ordinary activities

Total Comprehensive loss

Current Assets Cash on hand & at bank Debtors Stock on hand Total Current Assets

Non-current Assets

Total Assets

58

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

2019

2018

2017

Current Liabilities Creditors

$1,384,293

$1,561,884

$1,673,587

Bank Loan Facility

$20,017

$7,910

$2,055,038

Leave Entitlements

$167,862

$292,565

$424,032

$1,572,172

$1,862,359

$4,152,657

Financial Liabilities

$2,100,500

$1,720,624

$28,921

Total Non-Current Liabilities

$2,100,500

$1,720,624

$28,921

Total Liabilities

$3,672,672

$3,582,983

$4,181,578

$19,314,940

$19,267,010

$18,968,082

$7,148,865

$7,148,865

$6,998,865

$12,166,075

$12,118,145

$11,969,217

$19,314,940

$19,267,010

$18,968,082

Total Current Liabilities

Non-Current Liabilties

Net Assets

Members’ Funds Reserves Accumulated Surplus

Total Members’ Funds

MBAWA Annual Report 2019

59

BUILDING A BETTER INDUSTRY

60

MBAWA Annual Report 2019

BUILDING A BETTER INDUSTRY

Published by MASTER BUILDERS ASSOCIATION OF WESTERN AUSTRALIA (UNION OF EMPLOYERS) PERTH ABN 83 590 972 922 © 2019 Master Builders Association Western Australia.

No text, photo or graphic shall be reproduced, copied, published, broadcast, rewritten for broadcast or publication, or redistributed directly or indirectly in any medium without permission. No material or links or any portion thereof may be stored in a computer except for personal and non-commercial use.

MBAWA Annual Report 2019

61

BUILDING A BETTER INDUSTRY

HEAD OFFICE

MBA INSURANCE SERVICES

MIDWEST & NORTHWEST

35 - 37 Havelock Street, West Perth PO Box 167, West Perth 6872 Tel 08 9476 9800 Email mba@mbawa.com Web www.mbawa.com

35 - 37 Havelock Street, West Perth PO Box 167, West Perth 6872 Tel 08 9476 9890 Email wa.insurance@mbais.com Web www.mbais.com

4 Walton Close, Geraldton PO Box 1525, Geraldton 6531 Tel 08 9921 5061 Fax 08 9965 5025 Email geraldton@mbawa.com

SOUTH WEST

GREAT SOUTHERN

GOLDFIELDS & ESPERANCE

19 Clifford Street cnr Ray Jordan Way, Halifax LIA, Bunbury PO Box 253, Bunbury WA 6231 Tel 08 9726 0939 Fax 08 9726 0949 Email southwest@mbawa.com

30 Graham Street, Albany PO Box 1518, Albany WA 6332 Tel 08 9841 6232 Fax 08 9841 6522 Email albany@mbawa.com

PO Box 2066, Esperance WA 6450 Tel 1300 550 262 Email esperance@mbawa.com Email kalgoorlie@mbawa.com

@MASTERBUILDERSWA

62

MBAWA Annual Report 2019

@MASTERBUILDERSWA

@MBAWA_NEWS

MASTER BUILDERS ASSOCIATION OF WESTERN AUSTRALIA