2012-13 Annual Report

Page 1

Residential Subcontractors Professional Commercial Civil

M a s ter B u i l der s A s s o c i at i on of the AC T

Annual Report 2012 - 2013 FOR THE YEAR ENDED 30 JUNE 2013


2


Contents 4 Presidents, Executive Directors, Honorary Members & Life Members 5 Executive and peak Council 6 Industry Representation 7 President’s report 8 Executive Director’s report 10 Treasurer’s Report 12 Master Builders Australia report 13 Sector Council reports 16 Director Industrial Relation’s report 17 Master Builders Fidelity Fund & Skills Centre Building Fund report 18 Master Builders Group Training report 20 2013 Master Builders & cbus Excellence in Building Awards 21 Franklin CHarity house 22 Events 24 2012/2013 Financial report 31 Membership milestones

3


history Presidents

4

Life Members

1949 - 1954

F J Watters

1981

T H O’Connor

1954 - 1956

D C Smith

1984

L V O’Hara

1956 - 1958

J B Kennedy

1984

F J Quinn

1958 - 1959

C Burrows

1959 - 1960

F A Somes

1993

R Winnel

1960 - 1962

P R Armstrong

1995

P J Murphy

1962 - 1963

T H Blow

1998

J A Haskins

1963 - 1965

G A Anderson

2002

J H Hailey

1965 - 1967

C F Moore

2007

R D Barrett

1967 - 1969

L V O’Hara

1969 - 1971

A R Marr

1989

D Andrew

1971 - 1973

A C Williams

2007

D P Dawes

1973 - 1975

W I Plant

2009

F J Gillingham

1975 - 1977

F J Hegerty

1977 - 1977

W I Plant

1977 - 1978

G A Jones

1978 - 1980

F J Quinn

1980 - 1982

F J Marr

1982 - 1983

C Gustavson

1983 - 1984

J Pfeiffer

1984 - 1986

J K Hindmarsh

1986 - 1987

C T Spring

1987 - 1988

M E Milne

1988 - 1989

J J Hanrahan

1989 - 1991

R Winnel

1991 - 1993

K J Bromfield

1993 - 1998

J A Haskins

1998 - 1999

T J Rodgers

1999 - 1999

J A Haskins

1999 - 2001

S J Pinter

2001 - 2012

R D Barrett

2012 - 2013

S Butt

F J Marr

Honorary Members

Executive Directors 1964 - 1980

D Andrew

1980 - 1983

P M Berents

1983 - 1986

E M Lonie

1986 - 1987

F J Gillingham

1987 - 1989

R Winnel

1989 - 1990

G Williams

1990 - 1998

B D Bryant

1998 - 2007

D P Dawes

2007 - Present

J R Miller

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


Executive & Peak Council Executive & Peak Council •

Simon Butt – President

Frank Porreca – Treasurer, Chairperson Residential Sector Council & Peak Council Member

Valdis Luks – Chairperson Commercial Sector Council & Peak Council Member

Peter Naylor – Alternate Commercial Sector Council & Peak Council Member

Andrew Crompton – Chairperson Civil Sector Council & Peak Council Member

Nigel Forde – Alternate Civil Sector Council & Peak Council Member

Graciete Ferreira – Chairperson Subcontractors & Suppliers Sector Council & Peak Council Member

David Morgan – Alternate Subcontractors & Suppliers Sector Council

Hans Sommer – Chairperson Professional Sector Council & Peak Council Member

Gareth Powell– Alternate Professional Sector Council

Marc Roland – Alternate Residential Sector Council & Peak Council Member

Other Peak Councillors •

Mark Bauer – Peak Council Member, Commercial Sector

Sam DeLorenzo – Peak Council Member, Commercial Sector

Peter Middleton - Peak Council Member, Civil Sector

Stuart Richie - Peak Council Member, Civil Sector

Richard Corver - Peak Council Member, Residential Sector

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

5


MASTER BUILDERS

Industry Representation Master Builders is represented on the following Industry bodies in the ACT and Nationally.

ACT ABCB Commercial & Residential Energy Advisory Group

University of Canberra - Bachelor of Construction Management Advisory Committee

ACT Heritage Council

University of Canberra - Building & Construction Reference Group

ACT Work Safety Council

World Skills ACT

ACT Construction Safety Advisory Committee

Canberra Business Council Consultative Committee

ACTPLA Planning & Development Forum Civil Construction Safety Issues Advisory Committee

Canberra Business Council Planning Infrastructure Taskforce

Building Quality Reform Reference Group

Industry Reference Group

NATIONAL MBA

Asbestos Technical Reference Group Apprentice House

Master Builders Australia Board

Boundless Committee

Audit Committee

Default Insurance Fund Committee

Constitutional Review

SSP Call Tender Schedule Advisory Group

Contract Committee

ACTPLA Asbestos Advisory Board

Executive Director’s Advisory

ACTPLA Building Regulations Advisory Group

Industrial Relations

ACTPLA Industry Monitoring Group (Planning)

Membership & Marketing Committee

ACTPLA Planning & Development Codes

National Licensing Expert Group

ACTPLA Sustainability Initiatives Progress Group

National Occupations Licensing - ACT Group

Canberra Builders Supply Merchants Association

National Residential Builders Council

Construction & Property Services (Construction qualifications)

National Training Advisory Committee

Construction Industry Safety Handbook Consultative Committee

OH&S Council

Housing Officers Forum

CCF GROUP

Construction Industry Forum on Best Practice Water Use Construction Industry Long Service Leave Authority Construction Industry Training Council

CCF CEO Committee CCF National Board

EDD Commercial Advisory Committe EDD Residential Advisory Committee Training Fund Authority

6

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


president Simon Butt It is with mixed emotions that I present my Annual Report to the membership for 2012/13. Having come into the role after succeeding the long-standing and very successful, Ross Barrett, I was, subject to member support, looking forward to serving as the Master Builders ACT President for longer than one year. As it transpires, business imperatives resulting in my departure from Canberra do not make this possible. Notwithstanding, it has been a very busy year and one which I am pleased to have had the opportunity to be a part of in such an important role. I have been able to witness first-hand the legacy left by Ross and others before him and understand the respect held across the political divide and the bureaucracy in which Master Builders ACT is held. We currently find ourselves in the midst of unprecedented times. There is the volatile economic climate locally and internationally mixed with workplace relations and industrial reform subject to considerable controversy and putting pressure on business. Legislative and regulatory reform has been delivered at a furious pace, often leaving the business community confused and unnecessarily exposed. It is certainly hoped that the coming years are marked by more measured approaches to change by all levels of government that are both timed and considered appropriately to support business and industry. If there is a single topic that has consumed a lion’s share of the organization’s time in this past year, it is safety. This has followed the release of the Briggs-McCabe Getting Home Safely report and our own subsequent review conducted by MajorGeneral Steve Gower. There has been a lot of emotion attached to the subject for political and other purposes. The aim of Master Builders has been to ensure that we are well placed to help the industry do what is needed and that is to strive for continuous improvement in making sites safer. Two examples have been the continuation of innovation in cultural training for industry and the pending appointment of an Master Builders ACT Work Health and Safety Manager. Both as a practitioner in industry, and as Master Builders ACT President, I am in no doubt that the industry is a very willing and committed partner to` making sure that workers on our sites are fully protected and that our record is improved. There are so many imperatives for that to occur – social, business reputation and financial - and to suggest anything else is both wrong and mischievous. I certainly see better times ahead and everyone playing a part.

There are many positives about the work of Master Builders ACT and the role around training through MBA Group Training is one of them. There is an enormous responsibility falling on our industry at present and that is to ensure that we have the people available to deal with what will be future boom times for our industry. Apprentices are the life-blood of the building and construction industry. More needs to be done to sustain their presence and our work in this area is a constant in spite of some often bewildering decisions underpinning the future of apprentices. The industry will always need to be supported through training and MBA Group Training, ably led by Wendy Tengstrom and Brendan Lampard, has a program that is specifically designed to provide that support. The ongoing presence of the Master Builders Fidelity Fund has been of great comfort to our builders and continues to provide the certainty needed to ensure workflow. This Fund has been recognized as an exemplar in meeting the needs of industry and has been made possible by the diligence and commitment of Trustees along with the support of Jerry Howard and Alison Kendall. Master Builders ACT is so wonderfully supported by its members and the many sponsors who make possible the great events that we are able to deliver. The strength and respect of the Association is in so many ways made possible via the member input and the support of our sponsors. I also wish to offer my sincere gratitude to all of the Master Builders ACT and MBA Group Training staff who work so very hard to support the needs of members. It is a wide variety of subject areas, activities and events with which they have carriage and they conduct them in a most professional and committed manner. Finally, to my executive colleagues and sector council members who give so much of their time to making sure that the interests of our industry are looked after, I thank you for the privilege of being able to participate and provide support. It is a time honoured way for industries to prosper and grow and I look forward to seeing the industry return to stronger times from your incredible efforts.

simon butt President

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

7


executive director john miller We now have a half a decade separating business and industry from the commencement of the Global Financial Crisis. The effects of that meltdown remain as confidence levels are yet to return to major investors and to consumers at the broader level. This lack of confidence is being felt by the building and construction industry locally and nationally. It has been exacerbated in Canberra in the second half of the 2012/13 financial year with almost six months of speculation and uncertainty associated by the early calling of a federal election. The effect of the reduced confidence levels is amply demonstrated in the ACT which has slipped considerably in comparison to the major economic and activity indicators of other jurisdictions across the country. There was always a likelihood of that occurring to some degree after witnessing such high levels of building and construction activity for such a prolonged period. It does not make it any easier when that occurs and it is with much anticipation that the busier times return. That won’t happen without a certain set of conditions present. One of the major conditions required is a far more stable industrial relations environment. The strain of almost totally unfettered union activity in pursuit of wages growth along with unsustainable conditions and their ease of access to building and construction sites for motives other than safety will leave this country vulnerable long into the future. The toll is mounting on industries and businesses where the heavy hand of the unions has been felt - automotive, manufacturing, airline, shipping, mining and building and construction. The tragedy is the hurt of the workers and their families when the jobs disappear as industry and business, if they are able to survive, are forced to ship their troubles out and flat pack their solutions in. Safety has remained the most topical issue for industry over the past year. The conduct of the inquiry leading to the release of the ACT Government-commissioned Getting Home Safely report has sharpened everyone’s focus on the safety debate. The report contained over 40 recommendations most of which were fully supported by Master Builders ACT . Since the release of the report, we have made it our business to get on and proactively deal with the things within our control. After conducting our own review of the report headed by former Australian War Memorial Director, military leader and engineer, Major-General Steve Gower, we have committed to engaging a qualified work health and safety manager to support the membership. Furthermore, training in relation to safety culture which commenced prior to the release of Getting

8

Home Safely has been increased and well received by industry. Over 500 members have attended other briefings and seminars we have conducted in relation to safety and the outcomes of Getting Home Safely. There has been an incredible energy provided by many members in response to the challenges of continually improving performance around safety. It has been a very insightful exercise to witness the amount of time given by members, their preparedness to innovate, to listen to logic and experience and be completely committed to the highest levels of site safety performance. The glib throwaway lines used by the naysayers that industry doesn’t care about safety are hollow, opportunistic and miles from the truth. In further reviewing the economic climate, with both sides of mainstream federal politics indicating a major restructuring of the Commonwealth Public Service with a paring back of numbers, there is no better time for the ACT Government to commit to a complete review on the impact of its decisions in relation to activity and economic impact. It has been an extremely frustrating period for business and industry as the growth of fees and charges and the time to navigate the planning system to make projects happen have ballooned. Other changes that have impacted on time and cost are occurring frequently, without a robustness of discussion or a review associated with such significant changes and happening even in spite of the objectives of the Government itself. There have been ongoing debates, discussions and change (with more to come) associated with Draft Variation 306. New proposals for Universal Housing Design have seen the ACT try and jump the gun again. Changing requirements for documentation in conjunction with building approvals, with little or no consultation, have also left the industry totally confused. Also the new supervision requirements for apprentice will do little to support future engagement of young people on top of the recent wage case decisions that will make employing apprentices marginal for the many smaller businesses where most of that commitment is made. Our member survey last year revealed that government charges came second only to compliance, red-tape and paperwork as the membership’s biggest concern. I can only imagine in the next iteration of the survey that fees and charges will be escalated as a concern. This year has seen a huge increase in fees and charges and staggeringly ill-considered application of extension of time commence and complete charges in a climate where industry is pinned up against the wall because of a severe downturn in confidence and activity. Along with

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


other industry groups, we are working at a political level to try and bring about a review of decisions where unintended consequences are both economically harmful in the short term and will have investment implications for government in the longer term. Residential land supply objectives have been retained by the ACT Government however the output has been affected by a myriad of factors of which the economic situation is but one of them. Planning changes, environmental clearances, cross-border activity and larger offerings have contributed to the reduced output over the past year. The ACT Government announced major changes to the Land Rent program over the past year following many representations through the Residential Sector Council to bring it back to the original intent to support concessional buyers. Recent data regarding residential dwellings still indicates the ACT is still performing well and this is particularly so in the multi-unit development space. Our very important regular forums with a number of agencies including Shared Services Procurement, ActewAGL and the Economic Development Directorate have been maintained. These are vehicles which provide industry first-hand input into the areas which are impacting on their businesses and there have been some important gains made from representations through these forums. Equally, a number of issues remain where agreement has not been reached. Without the ongoing dialogue, that change has little or no chance of being enacted despite some ongoing frustration. MBA Group Training has again felt the full impact and challenge of a market where declining activity and lack of confidence is affecting placement of apprentices and general training demand. Our first objective to support industry in meeting their training needs remains as strong as ever, but we again seek industry support in meeting our objectives by engaging apprentices. It is vital as an industry that we continue to train and bring in new people to replace those leaving as retirement beckons. We must continue to provide quality training lest the reputation of the industry will suffer.

So many individual members with both passion and vision for the industry, the City and the region assist in the preparation of submissions and policy direction through a number of ways. To those many, many people who often remain invisible to much of our membership and key decision-makers at both a political and bureaucratic level, I sincerely thank-you personally and on behalf of the broader membership. This includes those on our executive and training board, representatives on various committees where Master Builders ACT and MBA Group Training are invited to participate, our sector council members, participants on reference groups and other periodic workshops and roundtables where we need the input of people on the ground. It was indeed with regret that our President, Simon Butt, after just one year in the chair gave notice of his pending departure due to his business commitments in New Zealand. Simon has been a wonderful contributor over a number of years on our executive committee, the Peak Council and MBA Group Training. He has been involved in other areas of the organization for many years before he took up those roles. On behalf of all, I thank Simon for his great contribution and wish him and Sue all the very best and we look forward to seeing you back in Canberra not too far down the track. I finish by acknowledging all the dedicated staff of Master Builders ACT and MBA Group Training for their outstanding input over the past financial year. We all look forward to again assisting and supporting members over the next twelve months and improving the operating environment for the broader industry .

John Miller Executive Director

Promoting and showcasing the great work of our industry to the public as well as communicating vital information to members is a critical role implemented by our marketing and events team. The 2013 Excellence in Building Awards was another huge night for our industry and very well received. Our fantastic new major sponsor, CBus and our other sponsors contribute incredibly to make this the biggest MBA awards night in the land. President’s Lunches continue to be a valuable vehicle for our lobbying efforts and are made possible with many terrific industry supporters along with those who also support our apprentice awards, golf day and annual dinner as well as Canberra Building News.

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

9


treasurer Frank Porreca This is my first report as Treasurer of the Association and whilst I am most pleased to say the organization is financially in a very sound position, the volatility and challenging times of the past couple of years remain and I believe will be with us in the next year or two. This ensures that our affairs will need to be very closely monitored, a point made by my predecessor and one which is an essential objective for running any organization be they good times or bad. The second half of the financial year saw the Australian economy come under real pressure for the first time in many years and this has translated into tougher times present and ahead. Equally, the ACT, whilst rating highly against other jurisdictions, is not leading the national economy as it was a few years ago. Spending has been curtailed and major projects and associated works are in short supply sharply diminishing local building and construction activity. Nowhere has this been felt more than in our Group Training operation where it has been difficult to keep apprentices placed although we remain committed to industry for when the better times return. This is not the first time industry has dealt with a downturn although we look forward to a return to better times sooner rather than later. Some forecasts, whilst subdued for the short term, are flagging that a steady rise in activity is on the horizon. I present the following overview of the activities and performance for each entity during the 2012-13 financial year as reflected in the consolidated financial report of the Master Builders Association of the ACT and MBA Group Training.

no exposure of member assets currently in this area. This may change in the near future as we complete negotiations around the acquisition of contiguous land for the expansion of training facilities. The 400m² of space on the upper level of our existing building provides further future income potential and support opportunity for members. As noted above, a very close eye is maintained on revenue and expenditure for the Association. These will continue to be scrutinised regularly to meet our expectations of delivery of member services as well as availing ourselves of the opportunity to enhance and expand those services. It is again pleasing to note membership has remained steady during the financial year. The Master Builders and CBus Excellence in Building Awards continue to achieve the objective of showcasing and promoting the Association and the outstanding work of members both within the industry and externally to the broader community. Additional resources have been applied to our communications with the membership. This is critical where technology is having an increasing impact on running businesses and in communicating with membership in a timely and appropriate manner. A modest budget surplus has been forecast and confirmed for the 2013/14 financial year. Through the internal processes we have been established to closely monitor and adjust our activities and budget, I am most confident of again being able to report a sound result for Master Builders ACT next year. MBA Group Training

Master Builders ACT Master Builders ACT , as the parent entity, has recorded a surplus of $220,473 for the financial year ending 30 June 2013. I note that this result was above the original budget forecast and continues recent above expectation performances of the Association through a difficult operating environment. Whilst staffing levels have been maintained, the executive has earmarked additional critical member support in the next financial year through the engagement of a specialist work health and safety officer in light of the Getting Home Safely report and our own subsequent review of that report. The executive committee retains a very tight rein on borrowings by the Association in light of the current climate and there is

10

MBA Group Training has recorded a second successive deficit result this year with The Board committed to training the industry and supporting the membership. The deficit of $290,361 is higher than originally forecast partly due to an inability to take up income associated with the Construction Apprenticeship Mentoring Scheme which will continue into the next financial year.. Overall, the deficit is partially explained by a delay in implementing increased charges in relation to the National Wage Case decision whilst the outcome from the Apprentice Wage claim was being heard. Secondly, the activity level of industry has declined markedly over the past couple of years and therefore managing contracted apprentices during the downturn

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


has resulted in an escalation of down-no-job costs impacting significantly on the final results. There have been slight adjustments to our apprentice intake numbers but it is most important that industry has the next wave qualified trades people ready for a return to better times. Failure to keep training will have consequences for industry as well as MBA Group Training operations and viability in the future. It is pleasing to note that builder’s licensing training continues to be in strong demand. Safety has had a significant focus over the past year and this is likely to continue. The industry has been very fortunate to have people willing to push and innovate in safety training as new solutions are needed to continually improve. Another area of more training needs and requirements is related to asbestos awareness. Plans for expanding the facility are also being prepared as the need and the demand for training services continues. The past year has seen a number of improvements finalized to give the facility greater training capacity and capability. The deficit notwithstanding which has been necessary to support industry, this has been a positive year for MBA Group Training as we set up to meet future demand. A budget deficit budget forecast for 2013/14 to support the industry, but the Board is focused on new programs and only sees this as a short-term position for the entity. Obviously, deficits are not a permanent option and we will continued to monitor performance over the course of the financial year aiming for new programs sustain the operation and expand the services provided by MBA Group Training. Conclusion I finish by thanking my fellow executive committee and Board members for their input, overview and support in ensuring we protect the financial well being of the entities. The accounts team, capably led by Senior Management Accountant, Louise McCallum, has continued to produce timely and detailed information to assist in meeting our obligations and responsibilities. I look forward to reporting positively again next year.

Frank Porreca Treasurer

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

11


master builders australia wilhelm harnisch The resilience of the building and construction industry was well and truly on display during the 2012/13 financial year. There was nearly $212 billion of work done nationally in the building and construction industry in 2012/13, mainly due to strong growth in engineering construction but offset by a decline in building activity. The industry employed over a million people during the year, slightly down on the previous year, and helped train 50,000 apprentices to enter a rewarding career. This contribution, however, belies the very difficult legislative and economic circumstances that the building and construction industry had to face over the year. Consumer confidence was largely absent over the previous year, made worse by a series of anti-business decisions of the Labor Government. This lack of confidence was most visible in the housing sector where a recovery has been very stubborn despite a series of interest rate cuts by the RBA. Anti-business legislative changes also did not help. The major setback for our members and our industry was the Labor Government’s winding back of the industrial relations system in favour of the unions. It started with the abolition of the ABCC, the tough cop on the beat and followed by numerous amendments to the Fair Work Act, all of which gave building unions unwarranted access to building sites. The ugly and unlawful behaviour by the CFMEU in Melbourne and south-east Queensland over the past year is clear evidence of this and why we need the return of the ABCC and its powers.

It is for these reasons that the national Board of Master Builders embarked on a Strong Building, Strong Economy media campaign in the lead up to the 7 September 2013 Federal Election calling for a radical change to Australia’s economic and workplace relations policies. Master Builders will of course work with either major party that forms Government after the election but things must change. The next Government must create a business friendly, economic and industrial relations environment, so that our industry can continue to contribute to economic growth, to creating jobs and to training the apprentices. Master Builders priorities for the next term of Government is to rebuild confidence by adopting sound economic policies, tackling the structural budget deficit, moving the IR pendulum back to the middle, reintroducing the ABCC and its powers, and to make housing more affordable. More of course needs to be done but if these policy priorities are achieved, then the fortunes of the building and construction industry can be secured in the years ahead.

Wilhelm Harnisch Chief Executive Officer

Master Builders has continually and forcefully expressed its strong concern about those anti-business changes to Government but to no avail. Another major disappointment is how the Labor Government managed the economy and the Federal budget. It is clear from various independent surveys that the economic and budget strategies did not have the confidence of business and investors.

12

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


sector councils residential The past 12 months have seen some major policy changes that have impacted on our sector of the industry. The ACT election and the announcement of the Federal election have seen cuts to both public spending and major construction projects. Large public service cuts have also been foreshadowed. In the first six months we experienced lower levels of activity than usual, with lower trends in construction starts and lower inquiry rates. However, after the initial slump in confidence, we are now seeing some stronger activity returning and stabilising across the residential sector. It is unlikely in the near future that we will return to the levels of activity recorded in 2009, 2010 or 2011. As we look back over the last 12 months, the Master Builders ACT has been involved in raising the profile of a number of significant issues affecting the sector, such as Land Rent, DV 306, site safety, the Lease Variation Charge (LVC) and Commencement and Completion charges. As I reported last year, the Residential Council had some major concerns the Land Rent Scheme. The Residential Council was unanimous in acknowledging the benefits of the concessional rates, and have also applauded the recent changes that have come into effect. We are seeing a reduction in “false demand” and a return to more consistent market demand. DV 306 still stands as a major impost to industry. We have seen numerous developments shelved and a huge reduction in the size of dwellings that can be constructed on traditional-style blocks. The Master Builders ACT has been actively involved in lobbying the government to arrive at a sensible consensus. However, at the end of the day, the Legislative Assembly approved the Variation and, unfortunately, we are now confronted with responding to a Technical Amendment to that Variation. So much for the consultation! Undoubtedly, our sector of the industry has maintained a solid safety record, with no serious incidents recorded in the past year, however, we need to be ever-vigilant. The year-to-date has also seen the introduction of more punitive measures for safety breaches, with the expansion of on-the-spot fines. The Master Builders ACT has been putting in an extraordinary effort to provide training for members on all aspects of construction-related safety and these initiatives have been totally supported by the Residential Sector Council and its members. The LVC and the Commencement and Completion charges continue to stifle development opportunities. The Residential Council is committed to continuing the battle by convincing the ACT Government of the negative impacts that fees and charges, as a whole, are having on the sector and the ACT’s Affordable Housing Action Plan. Over regulation and red tape are continuing to stifle our industry, not to mention the ACT Government’s desire to mandate Universal Housing Guidelines (UHG) for first home owners. The Residential Sector has had involvement from a diverse range of residential practitioners. I would like to invite and welcome anyone who has the time to provide further input to the Council and the industry more broadly. I would also like to thank those who have participated over the year.

subcontractors & suppliers Pondering over last year, I must say it is not one that most of us would remember cheerfully. We have been faced with a downturn in the industry, increases in red tape and labour costs, changes to industrial relations, company closures and delayed payments, if we are lucky enough to get paid. The list goes on. Nonetheless, no other subject has been as prominent in all sectors of the industry and wider community as safety. Master Builders ACT established a working group, a few years ago, that meets regularly to specifically address safety issues. Our sector is represented by David Morgan and myself. The WSAG (Work Safe Advisory Group) works diligently to present to the various stakeholders the need for change to the way we are going about becoming a safer industry. It is a topic that brings us together as subcontractors and suppliers and one, which the notion on how best to approach it divides, the establishment and us. Even though most in the industry would question the need for the overload of information contained in SWMS, and their effectiveness in the prevention of accidents changing the attitudes of authorities towards them is an ongoing challenge. Rightly so, safety should be at the forefront of everything we do. After the tragic deaths last year the media had a field day condemning the employers. The words money hungry, greedy or reckless were either uttered or implied. Most of us know the Managers and Directors of the businesses involved and they are nothing but decent people whom I’m sure went through more pain and heartache, than most of us can imagine. Our thoughts go out to the families, colleagues, employers and everyone that was somehow involved in these tragedies. Again, this year we have been very fortunate to get the high calibre of up-to-date topic speakers attending our meetings. Most of them making the sacrifice of getting up a few hours earlier than they would otherwise in order to support us. The fact that we get such good participation shows that we are all keen to be involved and educated in how we can improve the industry. The more involvement we have the better the outcomes, so I encourage all of you to participate as much as you can. I take the opportunity to thank everyone that in some way contributed to our sector council, especially David Morgan who has assisted me in the role.

Graciete Ferriera Chair

Frank Porreca Chair Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

13


sector councils professional The Professional Sector Council continues to fulfil an important advisory role in relation to the operational aspects of the Association, and ongoing industry specific issues. Some of the specific areas included: •

Safety within the industry was in the forefront this year. The Sector provided input into the Master Builders ACT submission into the ACT Government Safety Inquiry, then into the Briggs/McCabe Report ‘Getting Home Safely’ and then into Master Builders ACT ’s response to the ‘Getting Home Safely’ report. The Council is also represented on the Master Builders ACT Work Safety Advisory Group.

The electronic lodgement system for ACTPLA approvals has been improved with Master Builders ACT staff and Council members working with ACTPLA but there are still issues that need further work. We will continue our inputs into this system.

Advice on the ACT Land Release Program for residential, commercial and industrial land.

Draft Variation to the Territory Plan (DV306) has continued to be a major commitment by Council members. There have been submissions, site visits and representations to indicate the impact of this proposal. Amendments were achieved in the Variation that has now been passed by the Assembly. Work is continuing to ensure that any unintended consequences will be addressed.

Regular meetings with ActewAGL, to consider and advise on policy and operational matters and resolution of major issues when required.

The ACT building and construction industry is constantly challenged, however the Professional Sector Council will actively continue to advocate and play a role in contributing to a better industry. We have a key group of active Council members and I would like to thank them for their continued support.

Hans Sommer Chair

civil contractors The pace of change in civil construction in the 2012/13 year seems to have continued unabated with the roll out of the changes to WHS based on the ‘Getting Them Home Safely Report’ resulting in a number of changes to how projects are tendered and the introduction of Active Certification. Coupled 14

with this is the on-going development of the ACT Specification and a vigorous industrial relations environment. This is all against a backdrop of what appears to be a reduction in civil infrastructure spending outside of a couple of major projects and uncertainty as to the local land development program given the changes in the Federal Government. Throughout this period the civil sector members and the Master Builders ACT ’s staff have been active representing the civil construction industry on members behalf including: •

Attendance at Master Builders ACT Board meetings to represent the views of the civil sector (Andy Crompton & Nigel Forde)

Attendance at national CCF board meetings (Nick Zardo)

Management of a civil sector issues register.

Representing the civil construction industry in the response to the ‘Bringing Them Home Safely’ report and in particular providing input into the development of the Active Certification process.

Continued input into the development of a new ACT specification for major infrastructure and for urban infrastructure.

Representation of industry wide and individual procurement issues to Shared Services Procurement on behalf of members.

• •

Establishment of regular meetings with Actew Water to lobby on behalf of our civil members.

Establishing an on-going dialogue with WorkSafe ACT in relation to the introduction of the new WHS legislation and lobbying for exemptions to sections of the new regulations.

• •

Continual lobbying to ensure that government projects are packaged where possible to suit the local industry.

Lobbying on behalf of members in respect of industrial relations issues.

What has been particularly encouraging over the last 12 months is to see a number of our civil sector members start to get involved in tackling items on our issues register including those in relation to traffic management at worksites and liaison with attendance by services providers. The more members who actively get involved the more successful our lobbying will become. I encourage all members to raise issues, attend meeting and to get involved with representing our industry as I have no doubt that the next 12 months will present a number of challenges to the civil construction industry.

Andy Crompton Chair

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


Commercial The past year has seen a number of different issues being dealt with in the building industry with the major focus being safety on our work sites. A number of initiatives have either been implemented or continued, these being: •

The implementation of Active Certification from the ACT Government.

Worksafe ACT commencing a larger range of on-the-spot fines as of July 1st.

Worksafe ACT engaging a number of new inspectors from September this year.

A number of ACT Government Departments engaging their own safety managers and undertaking site Audits.

The Office of the Federal Safety Commissioner continuing its drive for greater compliance.

Builders continually putting more and more effort and resources into safety compliance.

We are teaching people how to comply with systems and focus on paperwork and ticking boxes rather than focus on the risks and procedures they will be undertaking on a daily basis. We need to convince our policy makers that systems compliance does not necessarily bring a positive change to the culture and attitudes on our building sites. We need to understand the constant changing nature of our sites and the human aspect involved in this that is often not taken into account by our policy makers. These issues need to be highlighted much more than they are for proper cultural change to take place on our worksites. Finally, on another note, I would like to thank Simon Butt for his involvement and contribution to the Master Builders ACT over a number of years, wish him all the best in New Zealand and welcome John Haskins as Simon’s replacement in the role of President.

Valdis Luks Chair

There is certainly a concerted effort from all parties in endeavouring to improve safety on our sites. One of the questions that needs to be asked by all concerned is will the improvement of safety on our sites reflect the resources and effort currently engaged on our systems compliance? Also, will this tremendous focus on systems compliance make a positive change to the safety culture on our sites and in the attitude and thinking of our work force? Will it make an individual think more proactively about the daily activities they undertake and the risks associated with them? I wonder if our workforce is becoming conditioned to thinking that because they have signed a safe work method statement and undertaken a site induction they can walk onto site and everything will be okay. They don’t need to, and sometimes probably don’t know how to think about identifying, assessing and dealing with ongoing risks and issues on active worksites on a daily basis.

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

15


industrial relations John Nikolic Like many other years, 2012/13 has been a busy year, dominated by enterprise bargaining agreement (EBA) negotiations between members, their employees and the Construction, Forestry, Mining and Energy Union (CFMEU) against the background of pre and post-election changes to industrial laws. Master Builders ACT has also undergone some personnel changes, with a change in the Directorship of the Industrial Relations Department and some anticipated expansion with a new Work Health and Safety Advisor (arising out of the ACT Government’s Getting Home Safely Report) and an additional Industrial Relations Advisor. Unsurprisingly for an election year, industrial relations policy felt the boot once again, with Labor lining up a field goal before fulltime with its release of the Fair Work Amendment Bill 2013 (Cth), and the incoming Coalition government promising restrained but important amendments to the Fair Work Act 2009 (Cth) (FW Act) in its Policy to Improve the Fair Work Laws. However, apart from the likely retention of Labor’s novel anti-bullying legislation (to take effect from 1 January 2014) many of the proposed changes from both parties will not greatly affect the regulatory burden felt by members. Indeed, radical changes to industrial relations laws are a likely second-term prospect for the Coalition. In a ‘watch-thisspace’ manoeuvre that could provide a platform for significant amendments to workplace laws, the Coalition has promised a review of the FW Act by the Productivity Commission. Yet in the short-term, the real policy differences between the parties concern union interests. The flagship Coalition policy for the construction sector is the reinvigoration of its industry watchdog, with Fair Work Building and Construction to be re-toothed with its initial mandate (the policing of freedom of association laws) and re-badged with its original name, the Australian Building Construction Commission (ABCC). The reorientation of the ABCC may provide some relief to members, who as noted have experienced an intense period of enterprise bargaining with the CFMEU since October 2012. However, while the CFMEU has deployed familiar tactics in

16

EBA negotiations and there have been high-profile breaches of industrial laws in other jurisdictions, lost-time to protected industrial action and spontaneous strikes remains low in the Australian Capital Territory, with nil / negligible lost working days recorded since October 2012 (ABS). Notwithstanding the likelihood of under-reporting, especially where the lines of safety / industrial relations issues are blurred, and the time taken up by EBA negotiations, such statistics should be viewed as an general indication that builders can build without too many overt industrial disputes. However, there are real questions about the ‘price’ paid by members for industrial peace. The latest bargaining round has seen the CFMEU successfully bargain for ‘core’ claims including 5% compounded annual wage increases in the general construction sector (4% in the civil sector, where coverage gains have been made) despite the enduring impact of the Global Financial Crisis which has stripped margins and continues to generate redundancies and forced administrations. The current CFMEU agreement also includes provisions that push the limits of EBA content-rules, most particularly controversial ‘job-security’ clauses, which purport to bind subcontractors (rather than employees) of CFMEU EBA-signatory companies to the terms and conditions of the CFMEU EBA. In 2014, Master Builders ACT will be watching keenly to see whether the Productivity Commission’s terms of reference (in its foreshadowed review of the FW Act) include the pursuit of extravagant bargaining claims by unions and the extension of EBAs to third parties.

John Nikolic Director Industrial Relations, Inhouse Legal Counsel

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


Master builders fidelity fund & skills centre building fund fidelity fund The Master Builders Fidelity Fund continues to support the residential building industry by providing certainty to builders and protection for consumers and, since being established 11 years ago, has issued more than twenty-three thousand certificates. Each year we are reminded of the reason for the Fidelity Fund being established and it is very pleasing that builders who remember the difficulties in the wake of the HIH insurance collapse in 2001, continue to support its existence. We never want to return to the days where builders were placed under extremely severe pressure in maintaining the financial viability of their businesses and the impact on suppliers and contractors as they struck trouble in obtaining housing indemnity insurance. It is pertinent that my message also acknowledges the ongoing support of the ACT Government and recognises the foresight and high level of cooperation they provided to ensure that our industry was able to get through one of its greatest challenges. We still receive excellent support and assistance from key ACT Government agencies in conducting the affairs of the Fidelity Fund. Through the Fidelity Fund, a fund owned by builders to service builders’ needs, we look to innovate and find ways to raise industry standards. Apart from ensuring capital adequacy objectives and providing industry with appropriate and realistically priced insurance, we assist in supporting builders with relevant technical advice through undertaking audits during construction to minimize risks to all parties. The industry is under scrutiny on a daily basis and we see this it as an equally important role to play our role delivering on improved quality. Our most recent initiatives from the Fund was to support the Master Entrepreneur Program. This will involve giving the opportunity for around 30-35 young members the chance to learn from the experiences of five very successful business people from different fields in the construction industry. The Trustees do not resile from their commitment to improve standards and, at the same time, protect the integrity of the Fund by minimising claims risk. In fact

we actively encourage and reward good performers and lift the bar on standards by refusing entry to non-performing industry participants with below par records on performance around work quality and financial management.

of the Fund, that revolves around the provision of infrastructure. Our objectives are to provide funding assistance to nonprofit organisations for the acquisition, construction or maintenance of a building, or buildings, to be used to deliver training.

Another factor giving industry strength in dealing with the Fidelity Fund is the expertise and local knowledge of the Board of Trustees controlling and administering the operation and their intimate understanding of the unique aspects of the local industry. Builder assessment is undertaken locally and any issues arising can easily be dealt with locally in a very timely way. That timeliness is critical in an environment like that currently confronting industry.

It is again pleasing to report that we have identified and supported organisations during the past financial year in expanding their infrastructure to support training. During the past year we have supported two organisations that play a critical role across our industry and the broader community in dealing with a growing crisis of mental health and depression; no doubt some of that exacerbated by the difficult economic times we currently find many parts of the community struggling with, often alone. Providing enhanced facilities to improve training to their counsellors was of paramount importance to that organisation.

There is still a great degree of uncertainty regarding the future of Home Warranty Insurance around Australia. Premiums are increasing at a rapid rate and providers of the product are continually questioning their continuance in providing this form of insurance. On a positive aspect, the Northern Territory government, this year, approved a Fidelity Fund scheme based on the successful ACT scheme that has now been in operation for some 11 years. In closing, I would like to thank my fellow Board of Trustees for their ongoing commitment, input and guidance.

Col Alexander Chair Skills Centre Building Fund Training of apprentices and ongoing skills development is still one of the greatest challenges facing our industry. Without a functioning and adequately resourced education and training system, business and industry would be unable to fulfil its potential. In delivering education and training, there is a responsibility on all stakeholders to play a role. It is not an effort that can be, or should be, left to government; notwithstanding they need to take a lead and shoulder a significant load.

Our objectives are met through a variety of funding sources including some surplus funds through the Master Builders Fidelity Fund and other industry events such as charity golf days, raffles and auctions. We continue to actively promote giving to the Fund through advertising in seeking contributions from interested individuals and companies wishing to donate. On behalf of my fellow Trustees, I would encourage all of industry to consider this Fund as a great initiative in supporting skills development, particularly young people we will need to help tomorrow’s Australia and our region. The Fund provides a great opportunity to proactively invest in training. I conclude my report by thanking my fellow Trustees and those who have provided important support and contributions to the Fund. We will continue to actively seek out those who are able to contribute and help secure the future skills need of our industry and associated organisations.

Trevor Corver Chair

The Master Builders Skills Centre Building Fund is one way that our industry can join government and make a contribution where the need is greatest. In the case

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

17


group training MBA Group Training (MBAGT) continues to serve our members and industry through employing and training apprentices and trainees as well as providing broader training opportunities for all members of the Master Builders Association of the ACT. We provide a broad range of services to our members by providing flexible and affordable placements for apprentices and trainees employed through MBA Group Training. We also train apprentices employed directly by our members (user choice) through our Registered Training Organisation (RTO) as well as delivering a diverse range of general training to meet industry requirements. As predicted in last year’s report, the looming downturn facing our industry at that time is now a reality and has provided MBA GT and other GTO’s with a number of challenges throughout the year. CITEA, a GTO and RTO formally ran by the CFMEU has formally disbanded and they have handed over their apprentices to another operator. Presumably CITEA were facing the same set of challenges we are meeting at MBA Group Trainingwhich is ironic given that the CFMEU are behind a wage case proposal to significantly increase apprentice wages which will place even greater pressure on the value of employing apprentices. We have undertaken economic modelling of the impact of a significant wage increase and we are concerned that this decision will fundamentally affect our on-going ability to provide quality and cost effective training of future trades people. . This financial year, the Group Training Organisation (GTO) employed 143 full time and part time apprentices and the Registered Training Organisation (RTO) trained 187 full time and part time apprentices.

2013

2012

2013

2012

RTO

RTO

GTO

GTO

Full Time Apprentices

127

166

90

106

Part Time School Based Apprentices

60

69

53

50

Cadets

0

0

0

0

187

235

143

156

Programs

Total Learner Numbers

18

Balancing our charter to provide both quality training as well as meeting the demand for our services to the wider industry requires considerable planning by the management team. Forecasting future demand for our services and balancing this with our annual intake of new apprentices is always difficult due to the competing demands of satisfying our Members’ needs, while ensuring that we do not have our apprentices out of full time placement. Although we planned for the current easing of demand for our apprentices in last year’s intake, this year has been particularly challenging in meeting this goal due to the decline in the long term placement of our apprentices coupled with another particularly wet year. With uncertainty and lack of continuity of work in the general industry, we are experiencing significantly high number of unrecoverable hours for the period between when an apprentice is returned from a host and then redeployed to a new host. This is having an impact on our budget and requires our dedicated team of field offices to work harder than ever to find long term and meaningful work for our apprentices This year total unrecoverable hours was up from 4259 hours in 2011/12 to 6179 hours this financial year. The safety of our Staff, Apprentices and Trainees is paramount. This is supported by our WHS policy and operational plan which continues to mature in line with recent changes to the Work Health and Safety ACT. While the MBA has raised some concerns regarding certain aspects of the recommendations of the Bringing Them Home Safely Report developed by the ACT Government, fundamentally we at MBA Group Training will continue to strive to influence safety compliance and culture of our employees and on sites where our apprentices are deployed. The general wellbeing of our Apprentices and Trainees is also equally important to us. Our partnership with Ozhelp provides advice and counselling for our people on a range of issues which are particularly pertinent to young people. This service is now supported by a mentoring program known as Construction Apprentice Mentoring Scheme (CAMS) which has been funded by the Federal Government. The schemes charter is to pair apprentices with mentors who will provide wisdom and experience to the apprentice to hopefully assist them in making sound decisions in their daily work and home life. We have been fortunate to have a number of volunteers join the scheme as mentors and MBA Group Training and the no doubt our apprentices appreciate this commitment.

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


Again our Apprentices and Trainees have excelled in achieving recognition for excellence in their chosen fields. In the Worldskills competition we achieved Silver (2nd place) in the Carpentry, 5th Place in the Bricklaying and 5th place in the ASBA section. Our school based programs such as the School Based Traineeship Scheme continue to provide a learning path for students and an opportunity for them to use this training to secure an apprenticeship at the end of their schooling. While the benefits of this scheme are considerable not only for the trainee but also for our industry, again the CFMEU are jeopardising the on-going viability of the program by enforcing a pay award where a trainee is paid more than an apprentice. We will be raising this issue to government to try and bring a sensible outcome where we can continue to offer this important service to the community. Other programs such as the Kids Assist program continue to generate enormous interest. It is generally recognised in the training arena that this program is effective in assisting students make more considered decisions regarding their options for future education and training. I want to particularly thank the Directors and Staff at PBS for their past and continuing support of this program. We continue to develop training initiatives to suit the demand from our members and through changes in legislation and industry standards. In addition to our existing courses we continue to develop new initiatives such as the new Asbestos Awareness course. This year MBA Group Training has issued 2359 statements of attainment through our short course program.

As in the past, the ongoing viability of our organisation is contingent upon continuing funding from both Federal and State Governments. Unfortunately, we have seen a decline in real terms of funding over many years as it has not kept parity with the expense of running an enterprise such as MBA Group Training. Again this year we have engaged with Government, both locally and nationally, to highlight the issues affecting our industry. We are grateful to the Construction Industry Training Fund Board for their commitment to increase their previous level of contribution for each apprentice. This has helped enormously in meeting a number of demands on our budget and has delayed, for the time being, any increase to the current charge out rates. . I would like to acknowledge the hard work and dedication of the Executive and Staff of MBA Group Training, our host employers who provide the demand for our services and my fellow Board members who all give back to our industry by providing stewardship to the organisation. Regrettably, Adam Davidson who joined our board last year has resigned his position on the board for person reasons. I would like to thank Adam for his contribution.

Rod Mitton Chairman

Our partnership with the University of Canberra continues to strengthen by providing training pathways for industry participants. This initiative has opened opportunities for our trainees to further enhance their careers through a “seamless� transition from entry level Certificate II through to Degree and Post Graduate qualifications. We also now provide certain core units for the UC Degree students at our Fyshwick Training Centre.

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

19


master builders & cbus excellence in building awards Excellence in building awards 28 june 2013 The Master Builders welcomed Cbus as the new naming rights partner for the 2013 Excellence in Building Awards. We were thrilled with the feedback received from the Awards night held at the National Convention Centre. The 1455 guests enjoyed many laughs provided by our comical emcee Peter Helliar and the fantastic performance from Shannon Noll. Of the 71 winning awards, 28 of the ACT entries have been selected to represent the Territory at the National Master Builders Awards in November 2013. This huge achievement is a combined acknowledgement to everyone involved in the industry.

Project of the Year construction control Four projects were considered for this award: The National Arboretum, The John Curtin School of Medical Research, the Franklin Early Childhood School and the Canberra Airport Multi User Terminal Development. All were worthy winners in their categories. However, the complexity of the client’s requirements and the demands of working within a full scale operating public facility resulted in the judges awarding the Commercial Project of the Year to Construction Control for the Canberra Airport Multi User Terminal Development. With an investment of $420m the all new Canberra Airport, befitting the Nation’s Capital, opened on 13 March 2013.

House of the Year bellevarde constructions Located on the edge of the lush green New South Wales south coast escarpment, this site enjoys distant panoramic views to the sea. The new house is the principal building sitting in the northwest corner of a complex of existing farm buildings including an old dairy, barns, sheds and cottages configured around an ancient Morton Bay Fig tree. It is made up of three pavilions connected through a breezeway creating a series of views through the building. Carefully designed to add a contemporary layer of history to the place, the new building responds in shape, scale and proportion to its immediate surroundings. Words to describe this building include flawless craftsmanship, excellence, extraordinary, stunning and exceptional. This building is a testament to what can be achieved by highly skilled craftsmen, truly flawless.

20

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


the franklin charity house

Built for hopes and drea ms On Friday 17 May 2013 the Master Builders Association of the ACT , in partnership with the Land Development Agency, the ACT Government and Classic Constructions were extremely proud to hand over the proceeds for the Franklin Charity House. At the hand over ceremony the Chief Minister of the ACT, Katy Gallagher presented cheques totalling $582,410 to five local charities. The Franklin Charity House project commenced the building phase in late 2011, once completed the house was used for display purposes and several industry and public information sessions. On Saturday 2, March 2013 the Independent Property Group auctioned the Franklin Charity House for $850,000.00 some $90,000.00 over the reserve price. This was the fifth highest sale price for the suburb of Franklin. With the support of over 100 local companies donating both time and materials to this project, we have been able to achieve a result that has surpassed all expectations. Our appreciation goes to the team from Classic Constructions who led the building process and were able to bring in many sub-contractors to donate their expertise, time and materials to this worthy cause. The five charities involved were YWCA of Canberra, YouthCARE Canberra, Toora Women Centre, the Canberra Men’s Centre and Inanna. The money received will assist the charities in providing support for the homeless and disadvantaged in the ACT.

housing needs of elder single retired women who have insufficient superannuation savings to enter the rental market, but too much to be eligible for public housing. YouthCARE Canberra – proposed to use the funds to employee an outreach worker. Given the nature of the issues being confronted by many of Youthcare’s clients (drug/ alcohol abuse, mental health issues, family breakdown, domestic violence), this money will allow the needs to be met for a broader cross-section of clients. Toora Women - proposed to fund extended opening hours for a women’s shelter and its associated crisis support services. The shelter provides shower and laundry services, free meals, food parcels, crisis clothing, and access to medical, dental, and mental health support; and is open in office hours during the week. Canberra Mens Centre - have identified support worker training as the priority activity to be supported by the Franklin Charity House project, to assist their clientsin receiving safe housing, employment and participation in social cultural and recreation activities. Inanna – used project funds to address the issue of education support for homeless children. Children in crisis accommodation find it difficult to access education as other children do. Household routines often require that elder children care for younger siblings in the morning and family support structures to clothe feed and dispatch children to school do not exist.

YWCA of Canberra - used the funds to contribute to the purchase and fit-out of two properties to meet the

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

21


2012/13 events 2012 Annual Dinner 17 October 2012 With over 260 guests in attendance, the 2012 Annual Dinner proved to be a mix of celebration, recognition and forward thinking. MC Adam Scicluna kept the night moving with his unique brand of humour and song, whilst guest speaker Professor Ed Blakely enthralled the audience with his knowledge and experience in urban planning and energy consumption. It was a most educational presentation from a renowned leader in the field. This year, Classic Constructions received the Build the Community Award for their dedication and ongoing support of the Franklin Charity House. On the night, the Master Builders and members said goodbye to long standing President, Ross Barrett OAM.

2013 Annual Charity Golf Day 25 February 2013 The Master Builders Golf Day is the major social sporting event on our calendar. This year’s beneficiary was the Centenary Hospital for Women and Children at the Canberra Hospital, with over $9,000 raised. This year’s Golf Day was well attended with guests enjoying a BBQ lunch and dinner at the Yowani Club Restaurant. Trophies were presented during the dinner, followed by guest entertainer, speed painter Brad Blaze. Brad completed three paintings in quick succession which were then auctioned off.

President’s Luncheons President’s Luncheons are one of the Master Builders ACT key activities on the event calendar. The luncheons are hosted by the President of the Master Builders, Simon Butt, and include a presentation from a prominent Guest of Honour. The Guests of Honour include leading politicians and executive officers of Federal and ACT government departments. The Luncheons provide an intimate forum for twenty guests to discuss topical industry issues. They are a superb way for Members to network with key industry stakeholders and to keep up to date with current activities within the ACT’s building and construction industry.

22

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


2013 Group Training awards 19 april 2013 The evening is an opportunity for industry professionals and industry bodies to come together to support and recognise outstanding work by the current MBA Group Training apprentices and cadets. The awards were presented to outstanding Plumbing, Carpentry, Civil, Bricklaying and school based apprentices. With the major awards; Outstanding Apprentice of the Year, and the paraprofessional category of Cadet of the Year being awarded to Jordan Lohse and Luka Manenika respectively. The Outstanding University of Canberra Student award went to Peter Jamieson.

a do at the zoo 15 november 2012 In November the Master Builders National Board convened in Canberra ahead of the National Building Awards. Prior to the official meetings 70 guests were invited to a very special Industry Dinner at the National Zoo & Aquarium. The amazing team at the National Zoo and Aquarium were on hand to discuss the animals on display and provided guests with the opportunity to get up close and personal with a few of the more scaly species. The adventure continued when the staff at the Zoo provided the opportune moment for guests to witness the lions at full charge at feeding time. Journalist from The Australian, Sid Maher spoke to the guests during dinner.

ccf earth awards 10 may 2013 The Earth Awards are the most prestigious awards in civil infrastructure and have the specific aim of recognising outstanding work in construction and environmental excellence which reflects development and use of the best technologies and practices by Australian civil contractors. This year’s awards were held at The National Arboretum, Canberra’s newest attraction and a project worked on by a number of our Civil Contractors. The award winners were Cord Civil for their work on the Belconnen to Civic Transit Way in Category III, project value $5m - $20m. The Category II (Project value $1m - $5m) winner for their work on the Eastern Valley Way Inlet Stage 1 was Ward Civil and Environmental Engineering.

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

23


Financial Statements

For the Year Ended 30 June 2013


statement by members of the council of management

We, J Haskins and F Porreca, being two members of the Council of Management of the Master Builders Association of the ACT, do state on behalf of the Council that in the opinion of the Council: 1. The financial statements and notes comply with the Australian Accounting Standards, mandatory professional reporting requirements and other authoritative pronouncements of the Australian Accounting Standards Board; 2. The financial statements and notes comply with the reporting guidelines of the Industrial Registrar for purposes of section 270 of the RAO Schedule; 3. The financial statements and notes give a true and fair view of the financial performance, financial position and cash flows of the reporting unit for the financial year to which they relate; 4. At the date of this report there are reasonable grounds to believe that the Master Builders Association of the ACT will be able to pay its debts as and when they fall due; and

(iii) The financial records of the Master Builders Association of the ACT have been kept and maintained in accordance with the RAO Schedule and the RAO Regulations; (iv) The information sought in any request of a member of the Master Builders Association of the ACT or a Registrar duly made under section 272 of the RAO Schedule has been furnished to the member or Registrar; and (v) There has been compliance with any order for inspection of financial records made by the Commission under section 273 of the RAO Schedule. Signed in accordance with a resolution of the Members of the Council of Management passed on the 6th September 2013.

President

5. During the financial year to which the financial report relates and since the end of that year: (i) Meetings of the Council were held in accordance with the rules of the organisation including the rules of the branch concerned;

Treasurer

(ii) The financial affairs of the Master Builders Association of the ACT have been managed in accordance with the rules of the organisation including the rules of the branch concerned;

Master Builders Association of the ACT Annual Report - Year Ending June 30 2012

25


independent audit report to the members

26

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


statement of comprehensive income for the year ended 30 june 2013

Master Builders Association of the ACT and Controlled Entity Statement of comprehensive income For the year ended 30 June 2013

Notes Revenue Other income

2 2

Employee benefits expense Depreciation and amortisation expense Rent expense Meetings and seminars Printing, postage and stationary expense Subscriptions Consultant expense Motor vehicle expense Donations and sponsorship Building awards expense Worker's compensation expense Insurance expense Skills Centre expenses Bad debts income/ (expense) Loss on revaluation of assets Loss on disposal of fixed assets Other expenses Surplus for the year

Consolidated group 2012 2013 $ $

Parent entity 2012 2013 $ $

8,228,023 273,628 8,501,651

8,365,718 623,802 8,989,520

3,443,391 108,694 3,552,085

3,426,422 382,692 3,809,114

(5,579,067) (305,473) (36,028) (16,515) (143,637) (152,436) (660,639) (75,394) (14,500) (434,011) (205,446) (67,232) (10,873) (9,238) (12,472) (848,567) (69,877)

(5,662,970) (367,034) (34,240) (14,439) (167,368) (141,312) (634,259) (73,062) (9,500) (387,680) (304,307) (66,597) (10,132) 3,360 (33,814) (772,179) 313,987

(1,519,896) (265,108) (36,028) (16,515) (99,216) (143,839) (253,478) (41,522) (14,500) (434,011) (10,942) (36,879) (10,873) 660 (449,465) 220,473

(1,536,127) (313,290) (34,240) (14,439) (112,475) (133,320) (224,227) (40,105) (9,500) (387,680) (11,161) (36,850) (10,132) (660) (29,490) (455,871) 459,547

Other comprehensive income Items that will not be reclassified subsequently to profit or loss Gain on revaluation of property, plant and equipment Total comprehensive income for the year

(69,877)

182,483

-

151,182

496,470

220,473

610,729

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

27


statement of financial position as at 30 june 2013 Master Builders Association of the ACT and Controlled Entity Statement of financial position As at 30 June 2013

Notes ASSETS Current assets Cash and cash equivalents Trade and other receivables Inventories Investments Other current assets Total current assets Non-current assets Property, plant and equipment Intangible assets Other non-current assets Total non-current assets

3 4

Non-current liabilities Provisions for employee benefits Other non-current liabilities Total non-current liabilities

4,049,767 983,762 1,454 1,041,973 179,843 6,256,799

2,023,595 339,263 1,415 723,799 54,057 3,142,129

2,671,859 254,889 1,454 108,535 3,036,737

8,507,133 32,976 8,540,109

8,575,212 46,592 8,621,804

8,294,394 32,976 8,327,370

8,409,243 46,592 8,455,835

14,578,313

14,878,603

11,469,499

11,492,572

9 10 11

916,802 177,570 812,254 1,906,626

1,131,234 156,291 284,411 1,571,936

293,967 130,970 684,937 1,109,874

545,404 121,985 144,411 811,800

10 11

17,665 17,665

82,768 500,000 582,768

5,435 5,435

47,055 500,000 547,055

1,924,291

2,154,704

1,115,309

1,358,855

12,654,022

12,723,899

10,354,190

10,133,717

11,949,931 704,091

12,019,808 704,091

9,681,400 672,790

9,460,927 672,790

12,654,022

12,723,899

10,354,190

10,133,717

5 6

7 8 6

Total liabilities Net assets EQUITY Retained surplus Asset revaluation reserves Total equity

28

Parent entity 2012 2013 $ $

3,097,911 1,049,650 1,416 1,825,875 63,352 6,038,204

Total assets LIABILITIES Current liabilities Trade and other payables Provisions for employee benefits Other current liabilities Total current liabilities

Consolidated group 2012 2013 $ $

17

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


statement of changes in equity for the year ended 30 june 2013 Master Builders Association of the ACT and Controlled Entity Statement of changes in equity For the year ended 30 June 2013 Asset Retained Revaluation Total equity Reserve surplus $ $ $

Consolidated group

11,739,660

Balance at 1 July 2011

521,608 12,261,268

Comprehensive income Net surplus/ (loss) for the year Adjustment Other comprehensive income for the year

313,987 (33,839) -

182,483

313,987 (33,839) 182,483

Total comprehensive income

280,148

182,483

462,631

Balance at 30 June 2012

12,019,808

704,091 12,723,899

Balance at 1 July 2012

12,019,808

704,091 12,723,899

Comprehensive income Net surplus/ (loss) for the year

(69,877)

-

(69,877)

Total comprehensive income

(69,877)

-

(69,877)

Balance at 30 June 2013

11,949,931

704,091 12,654,022

Master Builders Association of the ACT and Controlled Entity Statement of changes in equity For the year ended 30 June 2013 (continued)

Parent entity

Asset Retained Revaluation Total equity Reserve surplus $ $ $

Balance at 1 July 2011

9,001,380

521,608 9,522,988

Comprehensive income Net surplus/ (loss) for the year Other comprehensive income for the year

459,547 -

151,182

459,547 151,182

Total comprehensive income

459,547

151,182

610,729

Balance at 30 June 2012

9,460,927

672,790 10,133,717

Balance at 1 July 2012

9,460,927

672,790 10,133,717

Comprehensive income Net surplus/ (loss) for the year

220,473

-

220,473

Total comprehensive income

220,473

-

220,473

9,681,400

Balance at 30 June 2013

672,790 10,354,190

The above statement of changes in equity should be read in conjunction with the accompanying notes. Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

7

29


statement of cash flows for the year ended 30 june 2013 Master Builders Association of the ACT and Controlled Entity Statement of cash flows For the year ended 30 June 2013

Notes Cash flows from operating activities Receipts from ordinary activities Interest received Payments to employees and suppliers Gain on sale of asset GST Refunded/(Remitted) Net cash inflow from operating activities

9,216,772 157,273 (8,780,202) 12,307 (538,019) 68,131

Cash flows from investing activities Proceeds from sale of property, plant and equipment Purchase of property, plant and equipment Cash used in investment in term deposits Net cash (outflow) from investing activities Net (decrease)/ in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at end of financial year

30

Consolidated group 2012 2013 $ $

3

9,753,612 202,932 (9,015,950) 940,594

Parent entity 2012 2013 $ $ 3,819,847 72,152 (3,517,512) (162,308) 212,179

4,174,019 83,652 (3,197,985) 1,059,686

19,091 (255,176) (783,902)

28,183 (373,251) (1,041,973)

(136,644) (723,799)

28,183 (369,571) -

(1,019,987)

(1,387,041)

(860,443)

(341,388)

(951,856)

(446,447)

(648,264)

718,298

4,049,767

4,496,214

2,671,859

1,953,561

3,097,911

4,049,767

2,023,595

2,671,859

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013


membership Milestones The following members reached significant milestones this year with their continued membership and support of the Master Builders Association of the ACT.

40 Year Members A & A CONTRACTORS PTY LTD

20 Year Members B & T CONSTRUCTIONS (ACT) PTY LTD BINUTTI CONSTRUCTIONS PTY LTD

25 Year Members

CDH DEVELOPMENTS PTY LTD

ABA CONSTRUCTION MANAGERS (AUST) PTY LTD

CLASSIC CONSTRUCTIONS

ACTEWAGL

COLLIERS INTERNATIONAL (ACT) PTY LTD

BROWN CONSULTING (ACT) PTY LTD

COUNTRY BUILDERS PTY LTD

C.E. INDUSTRIES PTY LTD

DEVES FIELD PTY LIMITED

CARDNO (NSW/ACT) PTY LTD

FGC DEVELOPMENTS

IQON

GRACIOUS LIVING CONSTRUCTIONS

CB RICHARD ELLIS (V) PTY LTD

J D BATES

CLARKE & DI PAULI PTY LTD

LEEDEN PTY LTD

EASTCLIFF PTY LTD

METAL DESIGN PTY LIMITED

INDESCO PTY LIMITED

RAM CONSTRUCTIONS

J S O'CONNOR HARRIS & CO

RAWSON HOMES PTY LTD

JUST-RITE AUSTRALIA PTY LTD

REGAL HOMES AUSTRALIA

KEELER HARDWARE (ACT) PTY LTD

WILLEMSEN PROJECTS PTY LTD

MAIL MCDONALD BARNSLEY PTY LTD Q PROJECTS PTY LTD SYMETRY TILING CONTRACTORS WACO KWIKFORM LIMITED WHITEHOLME (CANBERRA) PTY LTD

Master Builders Association of the ACT Annual Report - Year Ending 30 June 2013

31


Annual Report 2012 - 2013 FOR THE YEAR ENDED 30 JUNE 2013