Master Builders ACT Annual Report 2010-2011

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COMMERCIAL PROFESSIONAL CIVIL RESIDENTIAL SUBCONTRACTORS

Master Builders Association of the ACT ANNUAL REPORT 2011


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Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


CONTENTS

Presidents, Executive Directors, Honorary Members & Life Members.....................................................4 Executive Council........................................................................................................................................................5 Industry Representation...........................................................................................................................................6 President’s report........................................................................................................................................................7 Executive Directors report.......................................................................................................................................8 Treasurer’s Report.................................................................................................................................................... 10 Master Builders Australia report......................................................................................................................... 11 Sector Council report.............................................................................................................................................. 12 Director Industrial Relations report................................................................................................................... 16 Master Builders Fidelity Fund & Skills Centre Building Fund report...................................................... 17 Master Builders Group Training report............................................................................................................. 18 2011 Master Builders & Boral Excellence in Building Awards................................................................... 20 2011 Events................................................................................................................................................................ 22 2010/2011 Financial report................................................................................................................................... 24 Membership Anniversaries................................................................................................................................... 31

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

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HISTORY Presidents

4

1949 - 1954

F J Watters

1999 - 1999

J A Haskins

1954 - 1956

D C Smith

1999 - 2001

S J Pinter

1956 - 1958

J B Kennedy

2001 -

R D Barrett

1958 - 1959

C Burrows

1959 - 1960

F A Somes

1981

T H O’Connor

1960 - 1962

P R Armstrong

1984

L V O’Hara

1962 - 1963

T H Blow

1984

F J Quinn

1963 - 1965

G A Anderson

1965 - 1967

C F Moore

1993

R Winnel

1967 - 1969

L V O’Hara

1995

P J Murphy

1969 - 1971

A R Marr

1998

J A Haskins

1971 - 1973

A C Williams

2002

J H Hailey

1973 - 1975

W I Plant

2007

R D Barrett

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

1964 - 1980

D Andrew

1984 - 1986

J K Hindmarsh

1980 - 1983

P M Berents

1986 - 1987

C T Spring

1983 - 1986

E M Lonie

1987 - 1988

M E Milne

1986 - 1987

F J Gillingham

1988 - 1989

J J Hanrahan

1987 - 1989

R Winnel

1989 - 1991

R Winnel

1989 - 1990

G Williams

1991 - 1993

K J Bromfield

1990 - 1998

B D Bryant

1993 - 1998

J A Haskins

1998 - 2007

D P Dawes

1998 - 1999

T J Rodgers

2007 -

J R Miller

Life Members

F J Marr

Honorary Members 1989

D Andrew

2007

D P Dawes

2009

F J Gillingham

Executive Directors

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


Executive & Peak Council Executive & Peak Council •

Ross Barrett – President & Peak Council Chairman

Simon Butt – Treasurer & Peak Council Member

Valdis Luks – Chairperson Commercial Sector Council & Peak Council Member

Alan Seymour – Alternate Commercial Sector Council

David Jones – Chairperson Civil Sector Council & Peak Council Member

Peter Middleton – Alternate Civil Sector Council

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

Rob Purdon – Alternate Professional Sector Council

David Howarth – Chairperson Residential Sector Council & Peak Council Member

Frank Porreca – Alternate Residential Sector Council & Peak Councillor

Other Peak Councillors •

Mark Bauer – Peak Council Member, Commercial Sector

Sam DeLorenzo – Peak Council Member, Commercial Sector

Michael Ensor - Peak Council Member, Commercial Sector

Stephen Wise - Peak Council Member, Commercial Sector

John Wilson - Peak Council Member, Subcontractors & Suppliers Sector

Richard Corver - Peak Council Member, Residential Sector

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

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MASTER BUILDERS

Industry Representation

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

ACT ABCB Commercial & Residential Energy Advisory Group ACT Heritage Council

Training Fund Authority University of Canberra - Bachelor of Construction Management Advisory Committee

ACT Skills Commission

University of Canberra - Building & Construction Reference Group

ACT Tertiary Taskforce Review

World Skills ACT

ACT Work Safety Council

Canberra Business Council Consultative Committee

ACT WorkSafe Construction Industry Advisory Group ACTPLA Asbestos Advisory Board

Canberra Business Council Planning Infrastructure Taskforce

ACTPLA Building Regulations Advisory Group

East Lake Community Reference Group

ACTPLA Commercial Advisory Committee

New Employment Opportunities

ACTPLA Industry Monitoring Group (Planning)

Industry Reference Group

NATIONAL MBA

ACTPLA Planning & Development Codes ACTPLA Residential Advisory Committee

Master Builders Australia Board

ACTPLA Sustainability Initiatives Progress Group

Audit Committee

Building Quality Review

Constitutional Review

Canberra Builders Supply Merchants Association

Contract Committee

Construction & Property Services (Construction qualifications)

Executive Director’s Advisory

Construction Industry Advisory Group on the OH&S Handbook

Membership & Marketing Committee

Construction Industry Forum on Best Practice Water Use Construction Industry Long Service Leave Authority Construction Industry Training Council EDD Commercial Advisory Committe EDD Residential Advisory Committee

Industrial Relations

National Licensing Expert Group National Occupations Licensing - ACT Group National Residential Builders Council National Training Advisory Committee OH&S Council

CCF GROUP

Molonglo Valley Stage 2 Planning & Design Framework - Community and Industry Reference Group

CCF CEO Committee

Occupational Health & Safety Council (Ministerial)

CCF National Board

Procurement Advisory Council

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Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


PRESIDENT I have now been President of the Master Builders Association of the ACT for several years and I continue to be fascinated by our wonderful 86 year history and the impact we have as an organisation. Our Association is continually being asked for its views by many bodies and has developed a strong and positive relationship with the ACT Government and continues to enjoy solid links with the ACT Opposition and senior bureaucrats. This last year has generally been a reasonable one for our industry and I am pleased to report that our Association is continuing to steadily improve in most aspects of our operation. The past year has seen us provide our usual important services to our membership but also to many members of our community. We have also increased and improved our training programs and our finances remain satisfactory. John Miller, the Master Builders ACT staff, the Master Builders ACT Executive, the MBA Group Training Board and the Fidelity Fund Board have all worked diligently to ensure this continual improvement. Over the past year we have attempted to provide the decision makers with simple messages, delivered without spin and highlighted by practical examples of the effects of their decisions on real business workplaces. This seems to be working. Our aim is to be close to our members so that we can respond appropriately to their needs and concerns. Our goal is to really know and understand these needs so we can then champion appropriate and sensible reform while we continue to educate our members to ensure their ongoing prosperity and business longevity.

Our ability to influence the debate and policy outcomes in the areas of our priorities is not only of significant importance to our members and their businesses but also to our total industry and to the ACT economy overall. So it is important that we conduct ourselves appropriately. However, every year brings new challenges which we will need to identify in order to manage the risks while taking full advantage of our opportunities. We will continue to concentrate on our usual priorities but other issues which impact on business will also inevitably involve some level of commitment. I would like to take this opportunity to sincerely thank our Master Builders Association of the ACT staff for their contribution to our organisation and I also thank our many members who volunteer their time to sit on our board and committees to help further our cause. I also thank all of our members for their ongoing support and I look forward to another year of challenges, hard work and successes.

Ross Barrett President

We are very fortunate that we have a high level of expertise within our membership, which we are able to call upon as the need arises. I would like to thank all those members who volunteered their time to assist the Association in its lobbying efforts. It is through these efforts that we have maintained a strong presence before the Government, bureaucrats and industry.

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

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EXECUTIVE DIRECTOR The volatility that arose from the collapse of world financial markets in 2008 returned again during the past financial year. Ironically, in many ways, some of the volatility was a result of the winding down of Economic Stimulus Package measures introduced to deal with market turmoil in the first place. Both Building Education Revolution (BER) projects and Social Housing programs eased off and along with that removed the protective shield from parts of industry as sufficient confidence has not returned to see more private projects get the nod. In making that observation, it is not unreasonable to suggest that the ACT and region has perhaps fared better than many other places over the last year and that is not withstanding the two speed economy to which many financials commentators are referring. In looking back at the activities of the Association during 2010/11, there have been two events that have had the greatest impact. The first occurred with the federal election. A minority government was formed as a result of changing fortunes for the Gillard-lead ALP. This has brought greater uncertainty to the table for our industry particularly with The Greens seeking an early winding up of the Australian Building and Construction Commission (ABCC). As political attention shifted to the activities of the ABCC, they in turn shifted their attention to employers to demonstrate their credentials in the eyes of those who are calling for their demise. The unions have placed a lot of pressure on the federal government and their other financially supported independent parliamentary members to bring an end to Australia’s efficient independent contract system. This will be to the long term detriment of the economy. Closer to home, long-standing Chief Minister, Jon Stanhope, called it a day. His departure coincided with the finishing touches being placed on the review of the ACT Public Service and the way in which it delivers services to the community and business. The corollary was a major shake-up including a single public service with one head and nine directorates. Three of the major agencies impacting on our industry have since undergone substantial change. These are planning, procurement and land supply. It has set up new opportunities and the hope is that the changes result in a more effective and efficient system.

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In amongst the political machinations is a program of change that is immense. In some ways it is incredible that at a time when business and industry is trying to survive the uncertainty surrounding financial markets, a massive agenda incorporating systematic change to the way in which business is to be operated in the future is being foisted on the country. The program is becoming a dead weight on creativity and innovation. Rather than being able to invest in the future, reams of money is being spent on compliance essentially dealing with the past. It is where our attention will need to be in the year ahead. The list of matters on our agenda is long. Either directly or through involvement on a myriad of working groups, the following are some of the issues that are being addressed by Master Builders ACT at present: New Work Health and Safety Laws (commencing 1 January 2012) New National Occupational Licensing Scheme (commencing 1 July 2013) New Australian Consumer Laws (commenced from 1 January 2011 with further change ahead) New Personal Property Securities Act (scheduled early 2012))) New ATO reporting requirements for Contractors in building and construction (July 2012) New Industrial Relations Employment Strategy (commencing 1 January 2012) Rewrite of ACT Building Act Review of ACT Strategic Plan Substantial changes to the Territory Plan incorporating solar design principles Introduction of a Carbon Tax (commencing 1 July 2012) Proposed new Asbestos rules Review of Security of Payments Legislation Further changes to Industrial Relations laws

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


All of this will mean substantial change for business and adjustment. At some point the debate has got to switch to reasonably argue the need for change rather than riding in with a program of change that more than often is demonstrably worse than what it replaces. We continued to meet regularly with two agencies that impact heavily on our membership. They are Shared Services Procurement (formerly ACT Procurement Solutions) and ActewAGL. The world is not always changed overnight through these forums however there have been some wins. Some low hanging fruit has been removed but there are some age old problems still to be dealt with and they are usually the biggest problems. Master Builders ACT however does appreciate the ongoing goodwill and involvement by these agencies and the commitment of the senior people involved. With the changes to the ACT Government we are looking to engage more regularly with some of the key directorates in order to negotiate through issues affecting the membership. This will see more comprehensive lists established of priority issues requiring resolution or greater focus to ensure a real partnership between industry and government. Regular meetings of the executive committee, the Sector Councils and the Peak Council have occurred during the past year. Reports from the Sector Councils appear later in the Annual Report. Many of the issues in the list above have occupied considerable discussion along with a major talking point around building quality. The subject of building quality along with meeting employment obligations are two of the biggest ongoing challenges to be faced in the year ahead.

The events and marketing department have been kept very busy in showcasing the great work of our industry to the public as well as communicating vital information to members. The Excellence in Building Awards was again an outstanding success. The support of major sponsors Boral and our other sponsors is fantastic and is appreciated enormously. We also receive great support in delivering our President’s Lunches, industry dinners, trade nights, apprentice awards, golf day and annual dinner to name a few of our functions. We have so many terrific industry partners. Many individual members give significant and valuable time to help develop Master Builders ACT submissions and policy positions and they also provide input to critical discussions on the many issues that impact on the day-today operation of local businesses. Much of this input flies under the radar for many people and the impact of that input is often not understood or appreciated. I offer my most sincere thanks to all of those who are on our various committees, councils, reference groups and associated bodies that support the work of Master Builders ACT and MBA Group Training. In closing, I again thank all the staff of Master Builders ACT and MBA Group Training for their efforts throughout the year. We all look forward to supporting the needs of our members in the year ahead and deliver on important and effective outcomes for the industry. John Miller Executive Director

Our training operation, MBA Group Training, has once again been kept very busy during the 2010-11 financial year and is not only looking for opportunities to support industry in meeting their training needs but also look to industry to support them by engaging apprentices. If we don’t continue to train and bring new people into our industry, and give them quality training, the years ahead will only become more problematic in dealing with a large enough and suitably skilled workforce.

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

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TREASURER It is pleasing that this being my third report as Treasurer I am able to once again to reflect on a sound financial performance for Master Builders Association of the ACT and our related entity, MBA Group Training. Last year I was able to provide some comforting commentary on the response by the Australian economy against a background of uncertainty delivered a year earlier in the form of the Global Financial Crisis. The positive aspect of Australia’s economic performance against other developed economies during that previous year was in many ways staggeringly above average and we have continued to defy expectations until now. However indicators are that greater diligence will be needed to steer our way through the coming year or so. Tight financial management and constant scrutiny of our operations will take on greater prominence with further uncertain times ahead. Despite all of the challenges, the volatility in world markets, and changes to the way we conduct our business, history does tell us that this is not the first time the industry has had to ride out a storm. The industry is resilient and there is much data to support the reality that there will be work ahead. In providing the consolidated financial report to reflect the relationship between the Master Builders Association of the ACT and MBA Group Training, I present the following overview of the activities and performance of each entity during the 2010-11 financial year. Master Builders ACT: A surplus of $250,145 has been recorded for Master Builders ACT as the parent entity for the financial year ending 30 June 2011. This result exceeded the original budget forecast surplus notwithstanding some higher expenses associated with employment of a new technical services manager to provide assistance in building quality and planning issues. In ongoing uncertain economic times currently being experienced, the executive committee maintains a position where borrowings by the Association are kept at a minimum. We still retain the 400m² of space on the upper level of our building that has income potential. All revenues and expenditures are closely monitored to ensure that delivery of member services are not put at risk and every opportunity is provided to enhance those services. Membership has remained steady during the financial year. Our major showpiece event, the Master Builders and Boral Excellence in Building Awards continues to achieve its objective to showcase the Association and work of members. Communication with the membership is vital and a lot of work has taken place this year to further improve our website and other communication media to help members in their businesses. 10

A budget surplus has been set and confirmed for the 2011-12 financial year. I remain confident that given the processes we have in place to monitor and adjust our activities I will be able to report on a sound result for Master Builders ACT this time next year. MBA Group Training: The result of MBA Group Training in the past year is a reflection of not only continued Government support for training activities but the diligence and hard work of the staff. It is a well known fact that our training operation has had to deal with difficult trading periods in the past and has required financial support by Master Builders ACT. Pleasingly, we have achieved a surplus of $760,538 for the year ending 30 June 2011. We know with the continued uncertainty surrounding the financial markets and the impacts on activity in building and construction, our results can be varied and often quite quickly. We slightly increased our apprentice numbers during the last year and pleasingly in the face of the predicted uncertainty placement with industry continued to be strong. As reported in the previous financial year, Construction Industry Induction Card (White Card) training kept the skills centre quite busy in the first half of the financial year. Builder’s licensing training continues to be in strong demand and we have introduced other new courses for work health and safety, energy rating and green building. Funding by the Commonwealth to recognize skills of existing workers has also ensured a busy training operation During the year we have been looking at the options around future expansion of our training activities and continue to discuss measures to facilitate that growth. This has included investigations of nearby land. We are currently preparing to provide additional covered space and storage area to cater for our outdoor training which is constantly in use. This will ensure more year round opportunities for training and better protection for those in training. Conclusion: I conclude this report by thanking my executive committee colleagues for their diligence and support in helping us all keep our eye on the financial ball. The accounts team capably lead by Senior Management Accountant, Louise McCallum continues to produce timely and detailed information. It is with this information at hand that we can closely monitor the financial performance of the entities. I look forward to being in a position to report just as positively next year. Simon Butt Treasurer

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


MASTER BUILDERS AUSTRALIA 2011 has been very challenging for the building and construction industry. Our industry, in particular, has seen the effects of a patchwork economy; an economy that is now entering a post GFC phase of weakening economic conditions. While the Federal Government’s stimulus program, particularly the BER schools program was very welcome, the lack of future work is now causing the commercial building sector to contract dramatically. Global and domestic economic uncertainties have caused a big drop in confidence which has seen the housing recovery stall. The accumulative effects of the RBA’s interest rate policy have also had a negative impact on new homebuyers. At the Federal level, the minority Government has resulted in a new political dynamic where the Independents and the Greens have greater sway over Government policy and direction. These challenges have seen Master Builders Australia intensify its lobbying efforts with the Federal Government. These efforts have focused on protecting the building and construction industry from an unprecedented attack on the legitimacy of independent contracting. The building unions have used the Fair Work Act to ramp up their attack on what is a legitimate and productive form of work in our industry. Master Builders has also made a substantial commitment of resources lobbying for the retention of the effective powers of the Australian Building and Construction Commission.

In the area of business, Master Builders Australia participated in the Henry Tax Review to make sure that the tax regime remains positive for the building and construction industry, emphasising the need for decisive action on stamp duties and developer (infrastructure) charges. Housing affordability remains a major challenge and significant lobbying was also undertaken in this area. Other bread and butter issues such as skill shortages, building codes and contracts were also given considerable attention. Master Builders Australia prepared 103 submissions and appeared before numerous Parliamentary and other Inquiries. Master Builders Australia continues to have positive relationships with the Government which has helped in shaping policies and programs for our industry that will deliver positive results for our industry and our members. The next 12 months will see the building and construction industry continue to confront major challenges as it grapples with the new OH&S national harmonisation regime and the impact of the carbon tax, should the legislation pass later this year. However, despite these challenges Master Builders Australia will work with its Member Associations to address these challenges and to champion the interest of our members. Wilhelm Harnisch Chief Executive Officer

The other major areas of advocacy have been in national occupational health and safety harmonisation, development of a national licensing framework for building occupations, lobbying against the carbon tax, opposing higher mandatory energy efficiency requirements for new buildings, to name but a few.

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

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SECTOR COUNCILS RESIDENTIAL The past year has seen another strong year of residential activity with almost 5,000 residential units being constructed. This strong demand has been generated by a lagging under-build in previous years. Increased federal funding initiatives have also contributed to the increased building activity in the residential sector. The ACT government is also continuing with a number of initiatives to address first home ownership; all of which contribute to strengthening the residential building activity. The upcoming year should also see strong residential building activity with a continuing strong ACT economy and demand for residential dwellings forecast to range from 3,500-4,000 dwellings. It is also estimated that up to 2,000 of these dwellings will be located in greenfields estates. Given the above picture, it will not be all wine and roses, as the industry will be confronted with a potentially new planning system, and the impact of lease variation charges are likely to have a negative effect, especially for our members who are engaged in urban infill projects.

This year has also seen continuing issues associated with the quality of building work. The MBA’s Residential Sector Council has been working closely with the Construction Occupations Registrar in developing training initiatives for our residential members, especially targeting areas associated with inferior quality work, such as waterproofing and external finishes. We will continue to work with the regulator in the coming year as it is imperative that we deliver quality construction outcomes for the consumers to safeguard the reputation of our industry. Despite some of the above challenges, I believe that the industry in the ACT is in pretty good shape and, hopefully, when I report this time next year, I will be able to relay another fairly positive report for our industry. I would like to thank my fellow Council members for their excellent support and commitment throughout the year. David Howarth Chair

A recent survey of our members on land issues indicated that there is still a strong demand for land. However, most members are of the view that land prices are too high and the price of land is the primary driver in increased housing costs. The high cost of land, coupled with government taxes and fees and charges and future uncertainty of the impacts of the carbon tax, are creating a certain amount of unease and uncertainty in the residential market. There is also some grave concern expressed with the time taken to get land ready to build on, with some Council members losing potential contracts due to the uncertainty and delays.

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Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


PROFESSIONAL

SUBCONTRACTORS AND SUPPLIERS

The professional sector continues to play a key role in the building industry in all its facets. This ranges from planning, architectural, engineering and legal skills, just to name a few.

Over the last 12 months we had many high calibre guest speakers address our meetings. The fact that these people took time off from their busy schedules to come hear our concerns and answer our questions reinforces the importance of our sector within the construction Industry.

Over the past year the Council has continued its advice on the issues that come to the Association. The Professional Council representatives and many other volunteers provide advice regarding the day to day and specific issues that are of an on-going nature in our industry. We have continued our input into Quality of Building Work - many issues have and are being addressed. One of these is the importance of on-going rigorous design to ensure that design issues do not cause any reduction in the quality of work expected. This is an important part of the process where we can play our part. Draft Variations to the Territory Plan have been a difficult issue over the last year. We continue to input to try and ensure all facets of these proposed changes can actually work in the market place. This also includes the amending Change of Use Charge Policy which has introduced a new regime called Lease Variation Charge (Commence 1 July 2011). Unfortunately, the Government has not heeded our advice in this Policy area. We also continue to be involved in Advisory bodies, regular meetings with ActewAGL to consider operational matters and any policy changes being considered. Over the year there have been continued concerns over the level of land releases, particularly residential. One area the Council has contributed is advising and recommending changes to the research work being published by the Government. The latest ACT Residential Land and Building Activity Report June 2011 Quarter is a vast improvement and provides important data to enable better decision making in this important area. The industry will continue to have its challenges and looks to the Professional Council to contribute its views for the future wellbeing of our industry. I thank the members of the Council for their continued support. Hans Sommer Chair

Our first meeting for 2011 was in February and Jim Gallogley from CBus spoke about Superannuation. Meg Brighton, Manager of the Workers Compensation Unit from the Chief Ministers Department and Mark McCabe, ACT OH&S Commissioner made themselves available to explain proposed changes to the Workers Compensation legislation in the ACT. It also gave our group the opportunity to reinforce the need for reform in line with the changes made in NSW under the Carr Government. Without a doubt one of the most pressing topics affecting the Construction Industry at the moment is Sham Contracting, so we were extremely pleased when ABCC Commissioner Leigh Johns accepted our invitation to address our meeting and give us a firsthand update on the current inquiry. His comments were well received and he took our concerns seriously, there is no doubt that it is and will remain of serious concern to all. We are the sector most likely to be affected by the outcome of the inquiry and after the conviction of a local company which attracted severe financial penalties, it reinforces the fact that the ABCC aren’t just giving lip service to the matter but are seriously pursuing the issue. Robyn Hardy from Shared Services Procurement attended our meetings in April and August to introduce the ACT Government’s new Audit Tool, which they believe will catch out rogue employers and Sham Contractors. Robyn has since retired from Shared Services and while we are sad to see her leave we will forward an invitation to her replacement to be a guest at one of our meetings next year. With all the challenges facing us we are sure to have interesting times ahead. Graciete Ferreira Chair

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

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SECTOR COUNCILS

continued

CIVIL CONTRACTORS The 2010 / 2011 financial year was characterised by abnormally high rainfall from July through to February, an industry wide peak of construction activity and significant pressure on the availability of key resources and basic materials. Evidence of the high volume of work across all sectors was the fact that the hard rock quarries struggled to deliver regular supplies of aggregate to concrete and hot-mix batch plants. There were mixed trading results achieved by our members due to the inevitable increased costs imposed by the above factors and then the year ended with a sudden drought of public tenders. You have to be an optimist to be a civil contractor. While the medium term work outlook is positive, it is expected that there will be a reducing number of major projects available for local contractors over the next couple of years. Contractors based in other states continue to play an active role in the local industry and some of our members are being successful in securing works further afield in NSW.

engineers. Getting the plans to the best possible standard is one of the key components for a successful project. TAMS is concerned about the finished quality of some civil projects and we are working to ensure that there is not an over-reaction to isolated problems. We are also involved in discussions with Worksafe ACT to achieve a sensible outcome for the provision of dogmen for basic lifting activities on civil sites. Our thanks again go to all Master Builders ACT staff members who provide a high level of service to the membership of the civil sector.

Peter Middleton Deputy Chair

Our association has again worked tirelessly with ACT Government agencies to address issues of concern and we have recently developed a targeted list of issues for discussion, in conjunction with the MBA, for use as a tool when involved in the various industry forums in which we participate. Procurement Solutions has now published, and is implementing, the paper specifying minimum standards of design and documentation for consulting

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Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


COMMERCIAL BUILDERS Our Commercial Sector Council members have experienced a fairly high level of activity over the past year, bringing a number of the BER projects to a close. It is unlikely that this level of activity will continue for the next year. We are, however, hopeful that a number of ACT projects currently on the drawing board, will get off the ground. The quality of building work in the ACT has been high on the agenda, especially regarding low-rise multiunit developments. The Master Builders ACT has been working with the ACT Government to address these concerns. Of particular interest is how the ACT Government proposes to deal with this issue moving forward. The Master Builders ACT has been very proactive in representing its members in this regard and has initiated a number of educational and training programs, as well as having representation on the Building Quality Forum in an endeavour to address some of the building quality concerns. Some of the discussions have centred on new legislative requirements and educational programs through the Master Builders ACT for contractors and builders. We have also formed an alliance with the University of Canberra where the Bachelor of Building and Construction Management is now being delivered in association with the Master Builders. This program will further enhance the skill levels in the industry by delivering appropriately trained para-professionals to serve the future needs of our industry.

The ACT government’s Hawke Review has seen the implementation of some major changes in the ACT bureaucracy. One such change has resulted in ACT Procurement Solutions becoming part of ACT Treasury. One of the most significant changes to come out of this has been what appears to be a major philosophical shift from Project Management delivery to Lumped Sum or Design and Construct. This is a radical change for the ACT Government that could be a positive move as long as all parties understand their roles and responsibilities within these delivery methods. As of 1 January 2012, all builders and subcontractors undertaking ACT Government building work, will be required to be prequalified in regard to industrial relations. All companies will need to undertake a compliance audit process and achieve prequalification. My understanding is at this stage it only affects ACT government projects, but the push will come for it to be across the board within the ACT. Finally, I would like to thank my fellow Council members and, in particular, Alan Seymour, for their valuable input over the past twelve months. Valdis Luks Chair

From the above, it is clearly evident that the Master Builders ACT, in partnership with UC, is doing its part to address quality of building work concerns. In other words, we don’t want more regulation; we want better training and more effective regulation.

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

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INDUSTRIAL RELATIONS Introduction The past twelve months has been interesting and challenging for all the wrong reasons. Rather than seeing continued reform in this space, what we have witnessed at the national level is a total lack of willingness by politicians and policy makers on both sides of the aisle to address the very real problem that is productivity. The Commonwealth Government sees the Fair Work Act (FWA) as a panacea to all ills, demonstrating an abject refusal to address gaping deficiencies in the Act whilst the Opposition, with both eyes firmly focused on the populist debate surrounding the carbon tax, has failed to heed the universal call from business to drive the call for change. From a public policy perspective this has proven to be a failure. Furthermore, the Government’s lack of real interest in the forthcoming review of the FWA, and the infighting in the Opposition on just what their policy might be, essentially means that productivity reform has fallen into the too hard basket, meaning we can expect little or no change from our political masters in the coming years. This is of little comfort to builders, project managers and subcontractors here in the ACT, who find themselves confronted with a one size fits all solution to industrial relations via the CFMEU. The local scene The impact of this lack of willingness to address real reform has had a profound impact on the local scene. Given the primacy of collective bargaining in the FWA, we are now seeing the CFMEU return to the days of old. The union’s pattern agreement now largely governs the sector and whilst the MBA was successful in re-crafting the document from its original, many uncomfortable and rapacious clauses remain including: 36 hour working week; income protection; 20% wage increases across the board with no acceptance of productivity offsets to name but a few. The MBA continues to advise employers that they ought to negotiate on the basis of what is good for their business rather than the industry. Whilst a number of members have held the line and refused to embrace the union Agreement, much of industry, under pressure, as a whole has felt compelled to do otherwise.

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On other matters we have seen a crackdown on the use of ‘illegal workers’ in the industry and the advent of an ABCC enquiry into code compliance within the finishing trades. The ABCC inquiry in particular has been driven by the perception that these essential trades have over the years developed a system that engendered considerable potential non-compliance by remunerating as employers ‘sub-contractors’ by the hour rather than on a whole of job or piece rate basis. We have also seen the coming of an ACT Government’s mandatory industrial audit scheme for all employers and sub-contractors wishing to tender for ACT Government work. This development arose out of the so called ‘sham contracting problem’ that has had enormous press coverage for much of the year. Members are advised that Master Builders ACT has formed a joint venture with MBA (NSW) to assist members through this process. Conclusion Given the lack of political will for much needed change in this space, we are likely to see many of the same issues arise in 2012. This may well result in a consolidation of the bargaining strength of the CFMEU and a continued crackdown on code compliance in the industry. Michael Baldwin Director Industrial Relations

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


MASTER BUILDERS

FIDELITY FUND & SKILLS CENTRE BUILDING FUND Fidelity Fund More than nine years after its inception and having issued over nineteen thousand certificates, the Master Builders Fidelity Fund has been an unquestionable success in providing certainty for the builders and protection for consumers. The success of the Fidelity Fund is owed, in large, to the continued support of the local building and construction industry, which remembers the reasons for its establishment following the collapse of HIH insurance back in 2001. The Fidelity Fund was established because of the difficulties encountered by a large number of our members in obtaining housing indemnity insurance. A large number of our builders were also unable to settle on speculative houses placing serve financial strain on their business, suppliers and contractors. Looking back nine years on, the establishment of the Fidelity Fund represented a major achievement and we are extremely grateful for the foresight of the ACT Government and the assistance provided by the various ACT Government agencies. A key aspect of the Fidelity Fund is that it is owned by builders to service builders’ needs. The Fidelity Fund has achieved its objectives with respect to capital adequacy and is not only serving the industry in terms of providing appropriate insurance, it is also raising the standards in the industry by undertaking regular audits on building work during the construction process and providing appropriate technical advice to builders. Another impressive aspect of the Fidelity Fund is that it has provided a means by which we can encourage the raising of standards within the industry and reward the good performers. We have also refused to provide cover to those non-performers or those who have suspect records, thereby protecting the integrity of the Fund and minimising the risk of major claims. Another great advantage of our Fidelity Fund is that it is controlled and administered by a Board of Trustees with local knowledge of the factors that are unique to our industry in the ACT. Builders’ assessments are undertaken locally and any issues regarding the application process can be dealt with at a local level in a timely manner. In the past year there has been a lot of uncertainty regarding the provision of Home Warranty Insurance in the other states, particularly in New South Wales, where the government now underwrites the scheme in that state. I report that the situation in the ACT is totally different and the ACT Master Builders Fidelity Fund has safeguarded the ACT home building industry against the uncertainty which has affected some other states.

Finally, I would like to thank my fellow Board of Trustees for their commitment and guidance throughout the year. Col Alexander Chair Master Builders Skills Centre Building Fund The year past, again, has seen lots of discussion around skills shortages, especially skills deficiencies that are now becoming more prevalent in our industry. One of the primary objectives of the Master Builders Skills Centre Building Fund is to assist with the provision of training infrastructure to further enhance and develop skills within our region. This incudes providing funding assistance to nonprofit organisations for the acquisition, construction or maintenance of a building, or buildings, to be used as schools to deliver training. I am pleased to report that over the past year we have been able to provide financial support to organisations in the acquisition and establishment of premises and training centres. These grants not only assisted training organisations with a specific imprimatur to deliver training, but also provide financial assistance to crisis support services who provide a valuable community service to members of our industry. The Master Builders Skills Centre Building Fund receives the majority of its funds from surpluses achieved by the Master Builders Fidelity Fund. The Fund also receives lesser sources of revenue from other events such as charity golf days, raffles and auctions. We have been promoting the Fund through advertising and seeking contributions from any interested parties wishing to make a donation. I encourage all members and, specifically our corporate members, to consider this as a great initiative in supporting skills development, especially for younger people. It also provides an opportunity for industry to get actively involved in investing in training. I thank my fellow Trustees and those who have provided a contribution to the Fund for their support and I look forward to reporting on the activities of the Fund next year. From my perspective, the Master Builders Skillls Centre Building Fund has made an enormous contribution in providing incentives to develop and secure the future skills needs of our industry. Trevor Corver Chair

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

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MASTER BUILDERS

GROUP TRAINING

MBA Group Training 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. This year has continued from last year’s good performance with our organisation continuing to develop and grow as a result of initiatives developed through our day-to-day operations and the ongoing implementation of the strategic plan. 2011

2010

2011

2010

RTO

RTO

GTO

GTO

Full Time Apprentices

190

149

110

109

Part Time School Based Apprentices

47

70

47

70

Cadets

23

83

1

7

Total Learner Numbers

238

302

158

186

Programs

We continue to provide a broad range of services to our members not only through 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. This financial year, the Group Training Organisation (GTO) employed 158 full time and part time apprentices and the Registered Training Organisation (RTO) trained 238 full time and part time apprentices. Forecasting 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. This year has been more challenging than last year with a decline in the long term placement of our apprentices coupled with a particularly wet year. This year down time averaged at 33.2 hours per apprentice in comparison to 22.3 hours in 2009/2010. The policy of moderating the annual intake of full time apprentices will be reviewed by the MBA Group Training in the coming months to hopefully fulfill our charter to provide both quality training and meeting

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the demand for our services to the wider industry. The Occupational Health & Safety (OH&S) of our Apprentices and Trainees remains a focus for MBA Group Training. This is assured through a robust OH&S policy and plan which was introduced in recent years and is supported through the employment of a dedicated OH&S officer. As reported previously, reinforcement of safety through our policy and compliance regimes has positively impacted on the workers compensation claims with the number of claims decreasing from 36 in the 2008/2009 financial year, down to 24 in 2009/2010 and 32 in 20010/2011. It is the goal of MBA Group Training to have this policy second party certified within the coming year. Again our Apprentices and Trainees have excelled in achieving recognition for excellence in their chosen fields. In the Regional Worldskills we achieved a gold in plumbing, silver in Bricklaying, bronze in Carpentry, silver in the school based category and silver in the team carpentry category. This was followed up by Gerard Allen, a fourth year plumbing apprentice, securing a gold medal in the National Worldskills competition held in Brisbane. Our school based programs such as the School Based Apprentice 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. This has an added benefit in that these students will have already obtained a number of skills and competencies prior to officially starting as a full time apprenticeship making them very valuable to our host clients from the first day they start on site. Other programs such as the Kids Assist program continues to generate enormous interest and 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. 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 courses to meet this demand. This year MBA Group Training has issued 2310 statements of attainment through our short course program.

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


MASTER BUILDERS

GROUP TRAINING

This year Master Builders ACT signed a Memorandum of Understanding (MoU) with the University of Canberra to strengthen training pathways for industry participants. This initiative will open 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. Executive Members of Master Builders ACT and MBA Group Training continue to engage with Local and Federal Governments to highlight the issues affecting our industry and provide advice on better servicing the training and employment sector. At our invitation, Gai Brodtmann, local Member for Canberra recently visited the Training Centre to see the work we do firsthand. Also we were recently granted an audience with Senator Chris Evans, Minister for Tertiary Education, Skills, Jobs and Workplace Relations to discuss a broad range of issues. Both meetings provided an opportunity for us to showcase the effective outcomes of MBA Group Training’s program and strategy for training and servicing our industry as well as discussing opportunities for Government to assist us in better targeting future funding.

Planning for future expansion of the Training Centre is well underway with additional outdoor covered training areas due for completion early in 2012. We are also looking beyond our initial requirements for more training space by exploring options to acquire additional land adjacent to the Training Centre for future expansion. I would like to acknowledge the hard work and dedication of the Executive and Staff of MBA Group Training who all continue to contribute to the success of our organisation. Also to retiring Board Members, Damian Dawes and Mark Crawford for their years of involvement as well as all of the Board whose contribution ensures that the scheme benefits from the diversity of experience each and every Board Member brings to the governance of MBA Group Training. Rod Mitton Chairman

John Miller of the Master Builders ACT and Professor Stephen Parker of the University of Canberra signing the Memorandum of Understanding between the two organisations.

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

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MASTER BUILDERS & BORAL

EXCELLENCE IN BUILDING AWARDS

The Awards Dinner Style, new technology and innovation; these features were all present in the projects of finalists and winners in the 2011 Master Builders and Boral Excellence in Building Awards. On Friday June 29th 2011, the awards dinner was hosted by the incredibly funny and upbeat comedian Ahn Do, saw over 1,480 guests in attendance, at the National Convention Centre. Guests enjoyed wonderful food and entertainment by the Elton Jack Show. Tier one Australian company, Boral continued its major sponsorship of the awards and long partnership with Master Builders ACT and the local industry. We thank Boral and the many other incredibly generous and supportive industry partners who contributed to the success of the awards, a hallmark event in the Australian building and construction industry calendar.

Project of the Year - Manteena Manteena have displayed great knowledge and expertise in both the construction and coordination of the 4,390m² project at the National Gallery of Australia. The newly constructed entrance is now more visible and accessible for visitors to the gallery, and once inside guests are greeted by 11 specially designed Indigenous art galleries built specifically to accommodate a diverse range of artwork including all sizes of early dot paintings, bark paintings, textiles, ceramics and sculptures. Other key elements of the project include improved visitor car parking, fit out of the existing under croft for art packing, framing and storage, new separated loading docks and art lift for moving of artworks, new kitchen facilities, underground mechanical plant room and much more.

House of the Year Better Building Services The judge’s initial comments on this property sum up the outstanding quality succinctly: “You have to see it to believe it”. This full brick home in Reid has attractive and understated street appeal with the neat and tidy landscaping blending well with its sandstone coloured stucco blend exterior. Dark wood features add a sense of depth and give the home a solid and contemporary feel. All windows, doors, skirting boards and architraves have been created from the same singular source of jarrah dark wood, creating a consistency which helps to bond each room together in such an exceptionally large home. The underground floor area of the basement level actually exceeds that of the ground floor itself and the true crowning glory of the basement level would have to be the cinema, featuring tiered seating, a huge widescreen, curved projector screen and a segregated lounge area for post-movie socialising.

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Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


Professional of the Year Archie Tsirimokos Archie Tsirimokos is one of Canberra’s most experienced and well-respected commercial lawyers, having particular expertise in the fields of commercial law, commercial dispute resolution, building and construction law as well as property development, sales and acquisitions. He is held in high esteem by both his colleagues and other industry associates for his professionalism and dedication to his work. It is this reputation for diligence and firm commitment to the job that has earned him the title of Professional of the Year.

Subcontractor of the Year Delnas Metal Roofing Delnas Metal Roofing have earned this prestigious award through their unwavering dedication to achieving top quality outcomes for their clients using effective communication, high quality workmanship and innovative approaches to the job. Delnas take on highly complex projects with eagerness and consistently achieve great success in producing the highest quality work.

Youth Participation & Training Brett Lentfer Brett Lentfer has made an extraordinary contribution to the training of apprentices in the ACT, and particularly to apprentices engaged by MBA Group Training. He has shown an absolute commitment to ensuring that the next generation of builders is well trained. He is also prepared to take on apprentices that are having difficulty fitting in with other employers. Brett’s successful approach is really quite simple: have a good blend of youth, enthusiasm and experience. You need a team approach where everybody is truly a part of the team and takes ownership of their role, whether it’s a 1st year apprentice, the site manager or the owner of the business.

201 1 2011

EXCELLENCE

IN

BUILDING AWARDS

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

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2011 EVENTS 2010 Annual Dinner The Master Builders Association of the ACT Annual Dinner was held on 4th November at the newly completed Gandel Hall in the National Gallery of Australia. Just over 300 people attended the evening, which was also the dinner that celebrated the Master Builders 85th anniversary in the ACT. The evening was hosted by ABC 666’s Ross Solly and we were particularly proud to have internationally-renowned urban planner Mr Charles Landry attend the evening and give a presentation on what makes a ‘world city’. Mr Landry covered many facets of modern urban planning, including the trends that are currently being explored around the world, estimation of what our cities will be like in the future, and how we will retrofit and rebuild our cities as the fourth lean, clean and green industrial revolution takes shape.

2011 Annual Charity Golf Day Yet another successful Master Builders Charity Golf Day was held at Yowani County Club, on 28 February, raising much needed funds for Lifeline Canberra (over $11,000). During the dinner presentation the guests were treated to a magnificent performance by Darren Carr – Australia’s top ventriloquist and comic entertainer. Mike Zissler, Chief Executive Officer of Life Canberra spoke to the crowd about the work Lifeline does in the community, he also said about the golf day “despite the weather a good day was had by all and Lifeline was the winner. These events are a chance for people to get out in the fresh air and talk to each other, Lifeline knows that men sometimes find it hard to share so spending 3 or 4 hours chasing a little white ball can be an opportunity to get things off your chest, it does you good”

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, Ross Barrett, 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 an 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.

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Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


MBA Group Training Apprentice & Cadet Awards The Apprentice and Cadet Awards, on 22nd March 2011, recognise and celebrate the outstanding achievements of the Master Builders Apprentices and Cadets.

Apprentice of the Year - Tim Knight

Cadet of the Year - Terry Mulcahy

Within his first week on the job, the team at AC Contractors knew they had stumbled onto something special with Tim. Whilst only a first year apprentice his level of understanding and standard of his ability were that of a tradesman, and he has continued to consistently improve over the past three years. Tim’s ability to solve any problem he comes across and the outstanding quality of all his work has led to his deserving win of this award.

A diligent and conversant worker, Terry has proved himself more than capable of entering into negotiations with all levels of the building team including clients, architects, consultants, subcontractors and management. During his time with Project Coordination they have seen him successfully transform from an inexperienced junior foreman to a highly experienced and proficient general foreman.

Kids Assist Initiative - Ten years on. Thirty two Year 10 students selected for the Kids Assist Program were awarded their graduation certificates at a breakfast ceremony at Gungaderra Homestead, Harrison on Friday 29th October 2010. The MBA Group Training award-winning Kids Assist Program enables the students to complete their Year 10 certificate while gaining an appreciation for the skills applicable in the construction industry. The program has been specifically designed for those at risk of dropping out of school by providing mentoring and support, while also introducing them to vocational and trade opportunities.

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

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Financial Statements For the Year Ended 30 June 2011

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Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


STATEMENT BY MEMBERS OF THE

COUNCIL OF MANAGEMENT

We R Barrett and S Butt, 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;

(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

2. The financial statements and notes comply with the reporting guidelines of the Industrial Registrar for purposes of section 270 of the RAO Schedule;

(v) There has been compliance with any order for inspection of financial records made by the Commission under section 273 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;

Signed in accordance with a resolution of the Members of the Council of Management passed on the 6th September 2011.

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 5. During the financial year to which the financial report relates and since the end of that year:

President

(i) Meetings of the Council were held in accordance with the rules of the organisation including the rules of the branch concerned; (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;

Treasurer Dated this 6th day of September 2011

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

25


INDEPENDENT AUDIT REPORT

TO THE MEMBERS

Report on the Financial Report We have audited the accompanying financial report of of the ACT and controlled entity (the association) which comprises the statement of financial position as at 30 June 2011, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the statement by members of the Council of Management (the council).

Council’s Responsibility for the Financial Report The council of the association is responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Associations Incorporation Act 1991 (ACT) and for such internal control as the council determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the council, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have provides a basis for our audit opinion.

Auditor’s Opinion In our opinion, the financial report of the Master Builders’ Association of the ACT and controlled entity (the association) is in accordance with the Associations Incorporations Act 1991 (ACT) and the Workplace Relations Act 1996, including: (i) giving a true and fair view of the association’s financial position as at 30 June 2011 and of its performance for the year ended on that date; and (ii) complying with Australian Standards.

Auditor’s Responsibility Our responsibility is to express an opinion. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

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A.B Papps, PricewatehouseCoopers, 44 Sydney Ave, Forrest ACT 2603 Dated this 7th day of September 2011

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2011 Consolidated Group

Parent Entity

2011 $

2010 $

2011 $

2010 $

9,632,382

9,060,654

3,354,772

3,142,052

(5,901,605)

(5,701,568)

(1,472,663)

(1,359,314)

(363,248)

(352,732)

(311,687)

(293,931)

Rent expense

(34,417)

(30,226)

(34,417)

(30,226)

Meetings and seminars

(15,965)

(13,467)

(15,905)

(13,062)

Printing, postage and stationery expense

(192,826)

(204,239)

(135,263)

(117,552)

Subscriptions

(147,657)

(137,880)

(139,392)

(130,912)

Consultant expense

(499,374)

(576,929)

(97,364)

(243,796)

Motor vehicle expense

(64,874)

(80,462)

(48,913)

(62,000)

Donations and sponsorship

(36,478)

(11,700)

(10,932)

(8,000)

Building awards expense

(421,744)

(283,031)

(421,744)

(283,031)

Worker’s compensation expense

(238,005)

(217,765)

(9,491)

(10,873)

Insurance expense

(63,314)

(62,637)

(37,041)

(34,634)

Skills Centre expenses

(13,493)

(14,802)

(13,493)

(14,802)

20,938

(9,473)

3,176

(3,176)

Other expenses

(649,637)

(623,958)

(359,498)

(338,045)

Profit for the year

1,010,683

739,785

250,145

198,698

-

-

-

-

Total comprehensive income for the year

1,010,683

739,785

250,145

198,698

Total comprehensive income attributed to members of the entity

1,010,683

739,785

250,145

198,698

Note

Revenue

2

Employee benefits expense Depreciation and amortisation expense

Bad debts income/(expense)

Other comprehensive income

3

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

27


STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2011 Consolidated Group Note

Parent Entity

2011 $

2010 $

2011 $

2010 $

ASSETS CURRENT ASSETS Cash and cash equivalents

6

4,496,214

2,758,376

1,953,561

1,270,124

Trade and other receivables

7

887,206

1,260,842

315,139

393,571

Inventories

8

2,243

2,052

2,243

Other financial assets

9

Other current assets

10

TOTAL CURRENT ASSETS

620,000

2,052 620,000

30,576

116,202

23,829

35,676

5,416,239

4,757,472

2,294,772

2,321,423

NON-CURRENT ASSETS Trade and other receivables

7

Property, plant and equipment

11

8,419,676

8,540,289

8,230,618

8,376,128

Intangible Assets

12

59,451

50,459

59,451

50,459

Other non-current assets

10

TOTAL NON-CURRENT ASSETS TOTAL ASSETS

8,958

8,958

4,545

4,545

4,545

4,545

8,483,672

8,604,251

8,294,614

8,440,090

13,899,911

13,361,723

10,589,386

10,761,513

CURRENT LIABILITIES Trade and other payables

13

869,099

1,409,187

319,265

805,731

Short-term provisions

14

112,413

66,230

96,846

52,218

Other current liabilities

15

108,576

110,229

108,575

105,229

1,090,088

1,585,646

524,686

963,178

TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long-term provisions

14

48,555

25,492

41,712

25,492

Other non-current liabilities

15

500,000

500,000

500,000

500,000

548,555

525,492

541,712

525,492

1,638,643

2,111,138

1,066,398

1,488,670

12,261,268

11,250,585

9,522,988

9,272,843

11,739,660

10,728,977

9,001,280

8,751,235

521,608

521,608

521,608

521,608

12,261,268

11,250,585

9,522,988

9,272,843

TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Retained earnings Reserves TOTAL EQUITY

28

23

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2011 CONSOLIDATED GROUP

Balance at 1 July 2009

Retained Earnings $

Asset Revaluation Reserve $

Total $

9,989,192

521,608

10,510,800

739,785

-

739,785

-

-

-

COMPREHENSIVE INCOME Profit for the year Other comprehensive income for the year TOTAL COMPREHENSIVE INCOME Balance at 30 June 2010

739,785 10,728,977

739,785 521,608

11,250,585

COMPREHENSIVE INCOME Profit for the year Other comprehensive income for the year TOTAL COMPREHENSIVE INCOME Balance at 30 June 2011

PARENT ENTITY

Balance at 1 July 2009

1,010,683 -

1,010,683 -

1,010,683

1,010,683

11,739,660

521,608

12,261,268

Retained Earnings $

Asset Revaluation Reserve $

Total $

8,552,537

521,608

9,074,145

198,698

-

198,698

-

-

-

COMPREHENSIVE INCOME Profit for the year Other comprehensive income for the year TOTAL COMPREHENSIVE INCOME Balance at 30 June 2010

198,698 8,751,235

198,698 521,608

9,272,843

COMPREHENSIVE INCOME Profit for the year Other comprehensive income for the year TOTAL COMPREHENSIVE INCOME Balance at 30 June 2011

250,145 -

250,145 -

250,145 9,001,380

250,145

521,608

9,522,988

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

29


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2011 Consolidated Group

Parent Entity

2011

2010

2011

2010

$

$

$

$

11,586,480

9,662,303

4,405,544

3,434,770

152,119

55,143

57,005

33,029

(9,711,611)

(8,868,754)

(3,564,793)

(3,356,846)

2,026,988

848,692

897,756

110,953

62,500

50,454

36,364

33,635

Purchase of property, plant and equipment

(351,650)

(203,057)

(250,683)

(165,743)

Net cash (used in) investing activities

(289,150)

(152,603)

(214,319)

(132,108)

Net increase/ (decrease) in cash held

1,737,838

696,089

683,437

(21,155)

Cash and cash equivalents at beginning of financial year

2,758,376

2,062,287

1,270,124

1,291,279

4,496,214

2,758,376

1,953,561

1,270,124

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from ordinary activities Interest received Payments to employees and suppliers Net cash provided by operating activities

16

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment

Cash and cash equivalents at end of financial year

30

6

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011


MEMBERSHIP ANNIVERSARIES 40 Year Members

20 Year Members

H J Bradley Pty Ltd

Professional Plaster Linings

W & M Bowman Constructions

Canberra Roof Trusses

35 Year Members

Homebuyers Inspections

Chadwick Industries (ACT Pty Ltd

ISIS Group Australia Pty Ltd

Cordell

W T Partnership Aust. Pty Ltd PBS Building (ACT) Pty Ltd

30 Year Members

Sutton & Horsley Pty Ltd

Marburg Management Pty Limited

Canberra Contractors Pty Ltd

Blackett Homes (Aust) Pty Ltd

Urban Contractors Pty Limited

25 Year Members

ACT Doorland

Valley Landscapes

Canberra Insulation Services Libertas Homes Pty Ltd Meier Constructions Pty Ltd G & H Aluminium Fabricators Kappelle Pty Ltd

John Bradley (R) receiving a 40 Year Anniversary Certificate for H J Bradley Pty Ltd from Bob Winnel.

David Howarth (R) of Blackett Homes (Aust) Pty Ltd receives their 30 Year Anniversary Certificate from Bob Winnel.

Master Builders Association of the ACT Annual Report - Year Ending June 30 2011

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ANNUAL REPORT

11

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Master Builders Association of the ACT Annual Report - Year Ending June 30 2011