Building news 2 2013

Edition 2-2013

Master Builders National Conference in Canberra

lifting the roof

14-16 November

PBS building reducing fall from height risks

on the spot fines

for breaches of Work health safety act from 1 july 2013

Master Builders ACT Centenary Book

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building construction recovery

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Master Builders Executive Council President – Simon Butt Treasurer – Frank Porreca Commercial Builders Council Chair – Valdis Luks Civil Contractors Council Chair – Andy Crompton

12

MBA Centenary Book

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Construction Works Insurance What should be covered by a construction works insurance policy.

Tell us your stories. We are putting together a book about the Master Builders that built Canberra

Residential Builders Council Chair – Frank Porreca Professional Consultants Council Chair – Hans Sommer Suppliers & Subcontractors Council Chair – Graciete Ferreira Master Builders Management team Executive Director – John Miller Deputy Executive Director – Jerry Howard Director Industrial Relations – Mike Baldwin Senior Management Accountant – Louise MacCallum

22

CCF ACT Earth Awards

26

We look at the recent winners of the CCF ACT Earth Awards.

40 Building & Construction Recovery on the Horizon

Lifting the Roof PBS Building implement system to reduce fall from height risks.

42

CAMS Mentoring Program Innovative Apprentice Mentoring to Meet Future Skills Needs.

Forecasts for the building and construction industry showing a mixed recovery across the three major sectors.

14 Superannuation & Contractors

18 Charity Golf Day

Over $9,000 raised for the Centenary Hospital, Canberra.

Has your business considered whether superannuation needs to be paid to these contractors?

36 Franklin Charity House 30 Member Survey

Security of payments is a critical issue for industry as this survey demonstrates.

Master Builders & Cbus Excellence in Building Awards Date: Friday 28 June Where: National Convention Centre, Canberra The Master Builders Excellence in Building Awards are largely regarded as the premier awards and networking event for the building and construction industry throughout Canberra and the surrounding region.

A brilliant result at auction exceeds charities’ expectations.

Asbestos Awareness Training

Health & Safety Representatives Training

Date: Ongoing Where: Maste Builders Skills Centre, Fyshwick

Date: Ongoing Where: Maste Builders Skills Centre, Fyshwick

The aim of this course is to provide participants with an awareness of the hazards and health effects of asbestos and its possible location in ACT homes and community.

Contact Cecilee Miller for more information: 02 6280 9119

Master Builders has developed an extensive and practical program to train Health and Safety Representatives for the building industry in compliance with the Act. This course is approved by the ACT Work Health and Safety Commissioner.

© This publication is copyright. No part of it may be reproduced, stored in a retrieval system or transmitted in any form or by any means including electronic, mechanical photocopy, recording or otherwise without the permission of the Master Builders Association of the ACT. Disclaimer: readers are advised that the Master Builders Association of the ACT cannot be held responsible for the accuracy of statements made in advertising and editorial, nor the quality of the goods or services advertised. Opinions expressed throughout the publication are the contributors own and do not necessarily reflect the views or policy of the Master Builders Association of the ACT.

Senior Manager – Marketing & Membership Services – David Leitch Master Builders Group Training General Manager – Wendy Tengstrom

Master Builders Association of the ACT 1 Iron Knob St, Fyshwick ACT 2609 PO Box 1211, Fyshwick ACT 2601 Tel: (02) 6247 2099 Fax: (02) 6249 8374 Email: canberra@mba.org.au Web: www.mba.org.au Advertising enquires Senior Manager - Marketing & Membership Services – David Leitch Tel: (02) 6175 5970 Mob: 0437 379 391 Email: dleitch@mba.org.au

Main Cover Image: PBS Building Safety Officer David Atkinson on site recently at a roof lift.

See p26 for more information.

5

President's Message

President of Master Builders Association of the ACT, Simon Butt It is pleasing to be able to report on the way in which the Master Builders ‘team’ has continued to face the challenge of improving safety on construction sites in Canberra. That ‘team’ includes the individual corporate members, Master Builders Executive, Sector Councils, and the Master Builders Management and administration team. Contrary to the views expressed by some in the media there has been a significant amount of work completed prior to, and following the release of the ‘Getting Home Safely’ Report, and that work continues apace.

and other industry stakeholders as part of the Construction Safety Advisory Group (CSAG) to bring about the implementation of the 28 Recommendations of the Government’s Report. We know our members want everyone that works on, visits, delivers to, inspects, or just happens to be passing by our sites to be safe. And this needs everyone to accept that challenge, and to be responsible for safety as their role requires whether owner, manager, employee, consultant or client.

And the costs of doing business, contracts and cashflow have been topical recently with a number of local sub/trade contractors being forced into administration or receivership.

The impact on those small businesses, their families, their workers and our local community should not be underestimated. It is incumbent that industry participants including Federal and ACT Governments and major property developers play their part in ensuring all projects that they undertake, through their agents or head

The reduction in funding to Fair Work Australia at a national level reflects the approach of the Gillard Government which is having the effect of strengthening the powers of the union movement MBA Group Training continues to educate the apprentices not only on technical & business skills but also on their responsibilities for safety; the Master Builders Association of the ACT’s own Registered Training Organisation (RTO) responds directly to the needs and priorities of its members in developing its short courses for safety, financial and contract management and technical capacity; advice continues to be provided directly to members on their obligations and responsibilities for a range of matters including safety; and the Master Builders ACT continuously updates members on the ongoing stream of legislative and regulatory changes which they need to understand, consider and incorporate into their individual dayto-day business operations.

Master Builders ACT strongly supports the ACT Government’s drive to improve safety on all sites, whether in the ACT or surrounding regions. We are working with the ACT Government 6

The Federal Budget has now been handed down and it reflects the tough times that the industry is currently going through, and is likely to see continue for some time ahead. Unfortunately there is not much at the Federal level for our local industry. And the reduction in funding to Fair Work Australia at a national level reflects the approach of the Gillard Government which is having the effect of strengthening the powers of the union movement, and reducing the powers of the independent arbiter on industrial matters right at the time we can least afford it.

We now await the ACT Government’s upcoming budget, expecting despite the tough times, a budget that looks forward bringing with it a clear focus on and strategy for implementing a program of infrastructure and capital works that will enable some consistency in workload and opportunity for our industry which is such a vital part of our community.

contractors, are done so in a fair and equitable manner when dealing with the smaller sub/trade contractors. It is also important that those smaller businesses that operate in this industry, especially in this tight market, manage well their cash flow and contractual responsibilities.

While it may appear attractive to work on large, high profile projects the contractual obligations and responsibilities usually require a significantly higher level of contractual risk management and good corporate governance.

Master Builders ACT continues to provide support and assistance to its members, large and small, and looks forward to an improving, if slowly, economic outlook over the coming year.

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Executive Director's Message

Executive Director of Master Builders Association of the ACT, John Miller

Let me take you around the country Wayne Swan style in an excerpt from his budget night speech to Parliament.

“Tonight we continue our ambitious program with a new $24 billion investment of nation building infrastructure....

So tonight we are investing in transformational public transport projects like Brisbane’s Cross River Rail and Melbourne Metro. These projects will change the way these cities work and allow them to grow into the future. We’re also putting funds towards productivityenhancing infrastructure in Sydney — the M4 extension and M5 duplication — and

True (in a past budget), but the ACT had to stump up half on what was previously considered an important piece of nation building infrastructure. Funnily enough, the full amount was provided to support other important infrastructure around the country that fell into the same category.

I have written before that the continued politicisation of Canberra is not only galling for people who live here and the nearby region, but a total disregard for the forefathers of this nation who decided to establish the city as the seat of government. The lack of respect for Canberra and federal leadership on

To move from the glum to the positive, and just as a reminder of the generosity of the people who make up this community, it was an unbelievable contribution by Master Builders members in partnership with the ACT Government through the Land Development Agency in the final outcome from our Franklin Charity House. Recently, more than $580,000 was distributed to needy local charities supporting the less fortunate in our community. It was wonderful to see the absolute pleasure on the faces of those operating the charities with the realisation they will be able to do much more in the year ahead given the funds they received. Listening to the stories, there is so much to be done.

the continued politicisation of Canberra is not only galling for people who live here and the nearby region, but a total disregard for the forefathers of this nation who decided to establish the city as the seat of government funds that will see the Missing Link between the F3-M2 constructed....We are also investing in the Gateway North Upgrade in Brisbane, Melbourne’s M80 Ring Road, and the South Road Upgrade in Adelaide. And in our regions we are investing in the Swan Valley Bypass in WA, the Bruce Highway in Queensland, the Pacific Highway in NSW, the Midlands Highway in Tasmania and the Tiger Brennan Drive in the Northern Territory.

These investments will boost productivity, build capacity, improve safety, and relieve congestion, as well as improving the quality of life in our communities across the nation....”

And there we have, yet another federal political slap in the face for the Australian Capital Territory. Of course, the retort will be, “We gave you Majura Parkway.”

8

anything to do with Canberra continues to be a sign of immaturity as a country and will hurt us in a region where respect and leadership is viewed far differently.

There are too many signs from all sides of politics at a federal level of a lack of willingness to show leadership when it comes to Canberra. There are far too many hackneyed and flippant throw away lines used by politicians targeting Canberra to make out they are in touch with their electorates. In the case of the Treasurer’s speech, it was about what wasn’t said.

I would contend that giving something to this city has never cost a politician his or her seat. Therefore why keep up the nonsense? It’s time for a new approach to this city by all federal politicians that demonstrates leadership and respects a decision taken long ago.

The ACT Chief Minister, Katy Gallagher, handed over the cheques in a special event at the Assembly. I acknowledge the wonderful support provided by the Chief Minister throughout the entire project.

The team at LDA along with our own team lead by David Leitch also deserve special mention. I reiterate my comments about our generous members how got behind the project and not least of all everyone at Classic Constructions. This has been a wonderful project and more is included inside this issue.

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Industrial Relations Message

Senior Advisor Industrial Relations, Master Builders Association of the ACT, John Nikolić

Some political football: industrial relations policy in an election year The political football that is industrial relations policy is feeling the boot once again, with Labor lining up a field goal before full time with the its desperate release of the Fair Work Amendment Bill 2013 (Cth) (FW Bill 2013) and the Coalition cautiously looking forward to some strong possession from September 2013, with the long-awaited release of its industrial relations strategy: a Policy to Improve the Fair Work Laws1. As discussed below, many of the proposed changes (from both sides) will not greatly affect the regulatory burden

expanded rights to flexible working arrangements and the entrenchment of penalty rates in modern awards4, the FW Bill 2013 will introduce new bullying laws, additional employee consultation requirements and further union rights of entry, as discussed below.

New anti-bullying laws Bullying is set to become an industrial relations issue (as well as a work health and safety concern) with the insertion of anti-bullying provisions into the FW Act. The laws would define ‘bullying’ as:

The proposal would provide alleged victims of bullying (as defined above) with rapid dispute resolution in order to avoid psychological harm, following which the Fair Work Commission (FWC) could order that any bullying cease, contravention of which would allow for the imposition of fines (up to $10,200 for individuals and $51 000 for corporations).

The new laws would operate in addition to members’ duties to provide a safe work environment under the Work Health and Safety Act 2011 (ACT).

The Coalition has promised to retain the new bullying laws but would extend them to cover the behaviour of union officials

the only people with anything to worry about from this policy are dodgy union officials and their supporters felt by members. Indeed, despite the noise, there has arguably been a bipartisan narrowing of differences on many substantive issues over the past 30 years.

In the short-term at least, their real policy differences concern union interests.

While some of the proposed changes under Labor’s FW Bill 2013 (which is likely to be passed by the Senate)2 may be reasonable, several clearly serve union interests rather than those of the public (or even workers)3. Similarly, in an apparent attempt to stifle comparisons to WorkChoices, Mr Abbott has (fairly accurately) provided the following disclaimer to the Coalition’s minimalist industrial relations election platform: ‘the only people with anything to worry about from this policy are dodgy union officials and their supporters’.

Labor’s FW Bill 2013 10

Along with extended parental leave,

repeated unreasonable behaviour directed towards a worker, or a group of workers of which the individual is a member, that creates a risk to health and safety.

The above definition would not require any subjective malice on the alleged bully’s part, only that the repeated behaviour be ‘unreasonable’ and adversely affect the worker’s health and safety. However, the definition of bullying will not include ‘reasonable management action carried out in a reasonable manner’, so the message is: please be polite to your employees – even when you are criticising their work.

Interestingly, the provision would apply to the behaviour of any person at work, i.e. it would not be restricted to employerstaff or staff-staff interactions, but could include client-staff and principalsubcontractor exchanges.

towards employers. It would also require applicants to seek advice from an independent regulatory body (such as the Fair Work Ombudsman) before making a bullying claim to the FWC, to stifle spurious claims5.

New rights of entry The FW Bill 2013 would also introduce expanded union rights of entry, allowing union officials to hold discussions in employees’ lunch rooms by default. This reverses the current laws which entitle an employer to ‘reasonably request’ that union officials hold discussions elsewhere (so that employees who object can enjoy their usual lunch-spaces in peace).

The new right of entry laws would also require employers to ‘facilitate’ accommodation and transport for union officials on remote sites, where the only accommodation and transport available are those provided by the employer,

unless this would cause the employer ‘undue inconvenience’.

Employers would be able to seek reimbursement from unions for such transport/accommodation.

-

a reversal of the ‘strike before you talk’ rule, i.e. a prohibition on industrial action aimed at forcing an employer to commence negotiations for an enterprise agreement; industrial action would instead only be available once negotiations had already commenced (potentially via a FWC order, which would require the support of a majority of employees);

-

legislate (in accordance with the High Court decision in Board of Bendigo Regional Institute of Technical and Further Education v Barclay) 8 that it is the subjective intent of an employer that must be taken into account when determining whether they terminated an employee for a prohibited reason (e.g. the fact that they have a disability) under an adverse action claim; and

-

a range of other more minor amendments (such as restrictions on the accrual of annual leave while an employee is absent on workers’ compensation and the removal of any leave loading where it is cashed-out on termination) which reflect the recommendations of the independent review into the FW Act commissioned by Labor. 9

The Coalition has indicated that it would repeal these new right of entry laws.

Consultation over rostering The FW Bill 2013 would also require members to consult with employees over ‘a change to their regular roster or ordinary hours of work’ (where such employees are covered by a modern award or an enterprise agreement). Although members will retain their managerial prerogative to alter rosters (subject to ‘reasonable’ overtime constraints) this change would mean that members could only do so after asking employees for their feedback about a potential change – i.e. alterations to usual working hours could not be predetermined but decided only following discussions with employees. Heavy fines could apply for failures to consult.

The Coalition’s policy to improve the Fair Work laws As noted, the target of the Coalition’s industrial relations strategy is unlawful union behaviour, which it would combat via increased financial penalties, the introduction of a new registered organisations watchdog and the reinvigoration of the Australian Building Construction Commission6. Although the Coalition acknowledges that there are ‘some problems with the current laws’, they note that they are still relatively new and that ‘stability, certainty and clarity are important to workplaces and their plans for the future’. Accordingly, while the Coalition will task the Productivity Commission with a broad review into Australia’s industrial relations laws (with any recommendations to be taken to a later election) following a win in September, the Coalition would introduce only the following changes to the current regime: -

-

-

-

a more generous paid parental scheme, based on sixmonths of a mother’s actual wage, up to a maximum of $75,000; restrictions on union rights of entry into non-unionised workplaces (for industrial relations purposes) to situations where a union enterprise agreement was being negotiated or where non-members actually requested the union’s presence; expanded resources within the Fair Work Ombudsman to assist small businesses; an increase in the scope of ‘individual flexibility arrangements’ (IFAs) so that employers would be able to simplify their obligations under a modern award or an enterprise agreement, as long as the IFA passed the ‘better-off overall test’ (BOOT) in terms of monetary and non-monetary benefits (IFAs already exist but their use is often greatly restricted under union enterprise agreements and non-monetary benefits cannot currently be considered under the BOOT);

Master Builders supports the Coalition’s amendments to the FW Act and would welcome any review by the Productivity Commission into whether further changes might encourage greater job-creation. However, vexed questions of workplace regulation and labour ‘productivity’ aside, it would be good to see the focus of industrial relations reform shift away from union rights to those of workers, with the aim of fostering a bipartisan consensus on a sustainable and administratively simple safety net.

Footnotes http://www.liberal.org.au/latest-news/2013/05/09/coalitions-policy-improvefair-work-laws.

1

2 The Senate Education, Employment and Workplace Relations Committee has approved the FW Bill 2013, although its Coalition members dissented.

3 As argued in Master Builders Australia’s Submission to the Senate Education, Employment and Workplace Relations Committee on the Fair Work Amendment Bill 2013 (15 April 2013): h`ttp://www.aph.gov.au/Parliamentary_Business/ Committees/Senate_Committees?url=eet_ctte/completed_inquiries/2010-13/ fair_work_2013/index.htm.

4 Penalty rates will be enshrined in the ‘modern awards objective’ (which guides the FWC in the drafting of modern awards). This follows the recent decision by a full bench of the FWC to reject employer groups’ claims to abolish penalty rates in various modern awards, such as the Hospitality Industry (General) Award 2010 and the General Retail Industry Award 2010, in Modern Awards Review 2012— Penalty Rates [2013] FWCFB 1635.

5 Following the widely publicised suicide of a workplace bullying victim in Victoria, more than 6,000 complaints were made to WorkSafe Victoria in 2010 alone, of which only 1% required a workplace visit; see R Wells, ‘Most workplace bullying claims fall short’, The Age (24 July 2011): http://www.theage.com.au/ small-business/managing/most-workplace-bullying-claims-fall-short-201107251hw1c.html (accessed 14 May 2013).

6 Which still exists, but with diminished powers and penalties, as Fair Work Building and Construction.

7 To be funded by an increase of 1.5% in corporations tax on those companies with incomes of $5 million plus.

8

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a three-month arbitration trigger for stalled negotiations over greenfields enterprise agreements (which would allow the FWC to determine the terms and conditions which should apply to workers on a new construction project, so that its commencement is not unduly delayed);

[2012] HCA 32.

9 McCallum R, Moore M, Edwards J, Towards more productive and equitable workplaces – an evaluation of the Fair Work legislation (Australian Government, June 2012): http://foi.deewr.gov.au/documents/towards-more-productive-andequitable-workplaces-evaluation-fair-work-legislation. Recommendations 2, 3, 6, 7, 9, 11, 12, 24, 25, 31, 38, 43, and 47 would be adopted by the Coalition.

11

To contribute information to this book contact The Communication Link.

The Master Builders that Built Canberra

Call: 02 6226 8880

Building a wonderful collection of stories of building Canberra

This special Centenary of Canberra publication is

generating great interest and unearthing wonderful stories of many of the building projects across our city. Dozens of retired builders and past members of the Master Builders Association have been interviewed and their stories recorded for inclusion in our Centenary publication – The Master Builders the Built Canberra.

We have many special stories, including what attracted many of our long-term construction industry leaders to Canberra and how they have grown their business over many years. In some instances these firms continue to be managed by second or third generations of the same family.

Do you know any of the above people?

We have also collected some wonderful photos, old newspaper clippings and copies of old MBA documents and event programs.

From the archives at the Master Builders Association we have uncovered these black and white photos that we think are from the 70s. They appear to be promotional ‘construction industry at 12

work’ photos and it would be great if we could identify any of the people in the photos – if you recognise anyone, please call The Communication Link on 6226 8880.

We are keen to source any old Master Builders Association of the ACT Annual Reports, or publications, particularly from the 60s, or other memorabilia. There is still time to contribute and we would love to hear your story.

To help cover the cost of producing this special book we are seeking sponsors. A sponsorship prospectus has been prepared and interested members should contact David Leitch.

To contribute information to the book,

contact The Communication Link on 02 6226 8880 or David Leitch, Senior Manager - Marketing & Membership Services on 02 6175 5970

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Superannuation and Contractors It is commonplace for businesses in the construction industry to engage contractors.

However has your business considered whether superannuation needs to be paid to these contractors?

Paul Smith, Special Counsel at Goodman Law explains the Superannuation Guarantee Administration Act and its ramifications for businesses engaging contractors or consultants.

Under the Superannuation Guarantee Administration Act (SGA Act) certain contractors, who would otherwise be outside the ambit of the SGA Act, are deemed to be employees for superannuation purposes. Section 12 (3) of the SGA deems a person “working under a contract that is wholly or principally for the labour of the person” to be an employee for the purposes of superannuation law.

Whereas a business would normally not be required to pay superannuation for contractors the deeming provisions above may apply.

The Risk to your Business There can be serious financial consequences in incorrectly assessing deemed employees as independent contractors and failing to pay them superannuation. The SGA Act imposes a charge called the Superannuation Guarantee Charge (SGC) on a business if it pays less in superannuation than what its employees (including deemed employees) are entitled to. The SGC is calculated as follows:

1.

9% of the employee’s total salary or wages (the shortfall amount); and

2.

Interest on the shortfall amount; and

3.

An administration fee for each employee.

Increasing the financial blow, the SGC is not allowed as a deductible expense against income.

Example James engages Adam to provide construction services to James’ business. Adam has his own ABN and personal injury insurance. Adam provides his services to James 5 days per week – at an agreed hourly rate – and issues tax invoices to James’ 14

business. Both Adam and James are content with this arrangement and it is in place for 18 months. The Tax Office conducts a random audit of Adam. The Tax Office deems Adam to be an employee for the purposes of the SGA Act. The Tax Office imposes an SGC of $40,000 on James which he is unable to deduct against income.

Employee or Independent Contractor?

The existence of an ABN provided by the contractor is not determinative in reducing the business’s likelihood of paying superannuation. As demonstrated by the substantial body of relevant case law the task of making a distinction between employees and contractors can be quite difficult. It is a matter for each business to assess on a separate basis whether the definition of “employee” applies to contractors for the purposes of the SGA Act. Most commonly the issue arises where the contractor is remunerated wholly or principally for their personal labour and skills.

Relevant Factors Some guidance was provided in the Superannuation Guarantee Ruling SGR 2005/1 where an extended definition of an employee will apply to a contractor when:

1.

The contractor is remunerated wholly or principally for their labour and skills;

2.

The contractor must personally perform the work, the subject of the contract, with no ability to delegate; and

3.

Is not paid to achieve a result.

However this can still be difficult waters for construction businesses to navigate.

Reporting for Contractors Further it is timely to note that businesses in the construction industry have since 1 July 2012 been required to report the total payments they make to each contractor for building and construction services each year. The first such reports are due to be provided to the Tax Office by 21 July 2013 for payments made in the 2012/2013 year.

The Tax Office is ostensibly using such information to data match contractors who have not lodged tax returns or who have under– reported income in their tax returns. Watch this space as to whether such information is used as a “stalking horse” to ascertain whether businesses should have been paying superannuation to their contractors.

Paul Smith at Goodman Law Paul Smith has a great deal of experience in all areas of employment law, construction law, commercial law, litigation and dispute resolution, insolvency and industrial relations. Paul also assists Goodman Law clients with wills and estates and family law. If you require assistance in relation to your independent contracting arrangements, Paul is available to discuss your concerns, review your existing arrangements and provide legal solutions relevant to your situation.

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Construction Works Insurance What should this insurance cover?

Construction works or contract works insurance is nothing new to builders – it is a common requirement in building contracts and many financial institutions funding projects stipulate that construction works insurance must be held as loan security. It is also just good business practice to hold this type of policy to protect your building works. So, what should be covered by a construction works insurance policy?

As the name suggests, the purpose of construction works insurance is to cover building works in progress, should loss or damage occur during construction. Insurance can be arranged specifically for each project or as an annual policy covering all projects undertaken with the insurance premium paid on works turnover.

There is no such thing as a standard policy, so builders should take particular care when taking out construction works insurance, as there are significant variations in the extent and quality of policies issued by different insurance companies.

The following information can help you to assess whether the insurance you arrange is right for you and will deliver best value for money. When arranging your policy, you should ensure it covers the following.

Occurrences of loss or damage The policy should be comprehensive in the scope of events that are insured. At a minimum, it should include occurrences of theft, malicious damage, wind, storm, flood and other water damage, 16

cyclone, tsunami, subsidence and landslip, fire including bush fire, and earthquake.

In addition, it is important to determine what coverage is provided for damage arising from defects. The costs of correcting any defective works are usually excluded; however, you should know how your policy will respond to resultant damage to correctly executed works caused by defective materials, workmanship, design, plan or specification in other parts of the works.

The insured works This should encompass all property comprising the construction, ancillary and temporary works, including all other items to be incorporated in the works, as well as other things like formwork, false work, scaffolding, sheds and on-site amenities (including hired items).

Basis of claims settlement The amount paid should be the costs incurred at the time of repair or replacement, and not at the time the damage happened – as the latter can generate a smaller payout. The repair costs should allow for the builder’s reasonable margin to be added to the cost of damages claimed.

Plant, machinery, equipment and tools Provision can be made to insure plant, machinery, equipment and tools (including hired items), with options available for both on-site and off-site losses. Ensure that coverage for any mobile plant is clarified.

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Owner supplied materials – should any items be supplied by the owner for incorporation in the works

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Professional fees – such as architects and engineers fees incurred in repairing insured damage

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Variations and escalation costs – for contract variations and inflationary increases during construction

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Removal of debris – costs of site clearance and disposal of debris following insured damage

Most policies will limit the type of works that are insured. Check that your project fits within the parameters of the policy, particularly in respect of scope and type of works, location, maximum project value, maximum construction and defects liability periods or any other limitations that may apply.

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Mitigation expenses – expenses necessarily incurred to protect or prevent damage to the works

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Materials in transit – for works materials in transit to the site, including loading and unloading

Cover period

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This period generally spans from commencement, through the construction phase until practical completion. It is advisable to include an additional time allowance after practical completion, as some contracts require extended cover or there may be a delayed handover.

Government and other fees – incurred in obtaining consent to reinstate insured damage

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Off-site storage and fabrication – allowance for these circumstances, if applicable.

Establish whether your policy is for replacement value or depreciated value, if claims are reduced by under insurance, and what conditions apply to unattended items, such as locked premises or vehicle provisions.

Insured parties This should at least include the builder, owner, contractors and subcontractors, financiers and, when required under the building contract, project managers, architects, engineers and consultants.

Works limitations

If you hold an annual policy, check whether your policy covers only new projects commenced, projects underway at policy attachment or both. Should you undertake any speculative works, make sure that your policy coverage extends for a period after completion pending sale or in the event of strata title projects, ensure that the gap between practical completion and strata registration is insured.

In the event of partial occupancy of the works during construction, special insurance arrangements may be necessary.

Alterations and additions works A construction works policy covers only the new works being performed, not the property undergoing alteration. Always establish contractual responsibility to insure such property, the status of the owner’s insurance over it during your works and arrange any additional insurance coverage necessary.

Owner arranged insurance Occasionally, building contracts are let with insurance provided by the owner. In these circumstances, always satisfy yourself that the quality of the insurance arranged and the policy excess applicable is acceptable. Various forms of ‘difference in conditions’ polices are available to fill gaps between your normal cover and the owner supplied policy.

Whilst the information in this Fact Sheet provides guidance for arranging your construction works insurance, it is by no means exhaustive. At the end of the day there is no substitute for reading your policy documents and making sure that you have complied with the insurance provisions of your building contracts.

The reality is that different construction projects can generate different insurance solutions and it is wise to engage the services of an advisor that is familiar with this type of insurance.

Austbrokers Canberra are the insurance brokers recommended

by Master Builders ACT and specialises in the insurance needs of the building and construction industry. The Master Builder ProtectionPLUS policy provides comprehensive insurance protection at competitive prices.

For more information, go to our website at www.abcbr.com.au or call Austbrokers Canberra on (02) 6280 5477.

Please note: Public liability insurance is a separate policy or policy section, and is not covered in this article. Details of insurance coverage in this article are a summary only of policy coverage. We are pleased to provide full copies of policy documentation on request, should you wish to review the complete terms of cover as these will apply in the event of any claims. Information contained herein is of a general nature and has not taken into account the particular insurance needs of any individual business or person.

Additional policy contingencies There are many additional contingencies that may be insured under a construction works policy. They can be insured as a percentage of contract price (usually advisable) or for a set amount. Some of these extra contingencies may be compulsory under the building contract, or insured at your option.

Canberra

17

Annual Charity Golf Day Over $9,000 raised.

The 2013 Golf Day beneficiary was the Centenary Hospital for Women and Children at the Canberra Hospital.

MBA President Simon Butt, Executive Director John Miller, Chief Minister Katy Gallagher MLA, with Jesse Ahern and Trent O’Sullivan from Trade Up.

Tim Furner tees off at the first hole.

On Monday 25 February the Master Builders Association of the ACT held the 2013 Charity Golf Day. The 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 consisted of a round of golf with a full field of participants, a BBQ lunch and dinner at the Yowani Club Restaurant. Trophies were presented during the dinner, followed by guest entertainer, speed painter Brad Blaze (pictured right). Brad completed three paintings in quick succession which were then auctioned off. Winning the bid for the Greg Norman painting was Richard Garner, Parliament House was won by the MBA’s David Leitch.

Congratulations to this year’s open winning team from Cube Furniture (pictured top right).

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Up for Auction on the day were the following generously donated items.

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Skyhire (Telehandler Wet Hire) – 3 hrs Total (2 hrs Hire + 1 hr Travel)

big thank you

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A1 Classic Car Rentals (Hotrod Hire, including driver) - 3 hrs Total

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A Callaway driver from Drummond Golf Fyshwick.

to all the sponsors for the day, especially Major Sponsor Trade-Up. These days are simply not possible without their continued support.

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A Blanco – 34 “ stainless steel convection oven with microwave and grill, donated by Prime Industries.

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Winning Homes full page display ad donated by Master Builders Association of the ACT.

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A ‘Do at the Zoo’, a fully catered dinner for ten people at the National Zoo & Aquarium, jointly donated by the National Zoo & Aquarium and Edge Catering.

Thank you to our Sponsors for this year’s Charity Golf Day

®

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CANBERRA 0421 388 807

Audiometric Screening Services 9 Meet legislated requirements for audiometric testing * 9 Avoid mishaps due to undiagnosed hearing loss 9 Our mobile service keeps workers safe and productive *

From 1 January 2012 all workers requiring frequent use of hearing protection due to working in noisy environments must have their hearing tested at commencement and then every 2 years under the ACT & NSW Health and Safety Act 2011.

Call or email to book info@hearingandspeech.com.au

6281 2311

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Tougher ABN checks and data matching

The Federal Budget contains tougher new checks on the use of Australian Business Numbers and new data matching which may have implications for the building and construction sector.

The Budget contains $80.2 million over four years for the Australian Tax Office and the Department of Finance and Deregulation to strengthen up-front checks for issuing Australian Business Numbers.

The funds are also designed to encourage the use of AUSkey for accessing online services of the Australian Business Register.

The Government said the measure will also enhance Standard Business Reporting to continue to reduce compliance costs for business. It will reduce regulatory costs and minimise the compliance burden for individuals and businesses.

It will also increase revenue by $106.4 million over four years.

The Australian Tax Office will also receive an extra $77.8 million over four years to increase its scrutiny of business reporting of:

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taxable government grants and specified other government payments;

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sales of real property, shares (including options and warrants), and units in managed funds;

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sales through merchant debit and credit services;

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managed investment trust and partnership distributions, company dividend and interest payments; and

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transactions reported to the ATO by the Australian Transaction Reports and Analysis Centre.

The increased scrutiny is expected to produce an extra $610.2 million in revenue over four year.

ActewAGL energy saving house calls Free energy saving house calls provided to over 5,500 ACT homes – book yours now!

At ActewAGL, we want to help you keep your energy costs under control. That’s why we’ve launched a free energy efficiency program for ACT residents to provide energy saving products that can make a real difference to your energy costs.

ActewAGL’s Energy Efficiency Team are making free energy saving house calls to homes in the ACT to install products that can help you reduce your energy bills. These products include standby power controllers, energy efficient light bulbs and draft stoppers.

The energy saving house calls are a free service provided by certified installers at a time that is convenient to you.

ActewAGL General Manager Retail Ayesha Razzaq said, “These free energy saving house calls are one of the many ways we are assisting our customers keep their power bills down this winter.

“The program has received a positive response from our community and so far, over 41,000 energy-efficient light bulbs, 10,000 standby power controllers and 3,300 draught stoppers have been installed across 5,500 homes.

“During our visit, friendly ActewAGL staff will inspect areas within your home that could benefit from the energy saving products we offer and we will install them all for free.”

You’ll start saving money straight away – simply replacing incandescent light bulbs with compact fluorescent light bulbs can save households an average of $100 on an annual electricity bill.

Importantly, all of the old light bulbs are taken at the end of the visit and disposed of in a safe and environmentally friendly way.

The ActewAGL Energy Efficiency Team are calling in on homes on a suburb-by-suburb basis, but if you would like to make sure you don’t miss us, you can book an appointment now by calling 1300 789 002.

In the meantime, why not check out our dedicated page at actewagl. com.au/assist. It’s full of ways we can assist you to manage your energy costs.

ACT Building and Construction Industry Safety Handbook The purpose of this Safety Handbook is to provide members of the building and construction industry with a common set of basic safety requirements applicable to sites, regardless of size.

The information in this Handbook deals with a variety of hazards that have the potential to produce the highest level of risk. Appropriate safety measures are suggested to eliminate the hazards or, if it is not reasonably practicable to do so, implement a systematic hierarchy of control approach to minimise as far as reasonably practicable the risks to health and safety.

The Handbook can be used together with general industry and site specific inductions. It is also a useful reference for supervisors, work safety representatives and workers in determining appropriate work safety policies, practices and procedures required in the building industry.

The Safety Handbook Consultative Group acknowledges and thanks Incolink Victoria for their generosity in allowing the use of their handbook to create a publication that reflects the ACT building and construction industry.

This Handbook has been endorsed by WorkSafe ACT as a guide and educational tool for managing safety.

The 5th edition of the Handbook has been revised to reflect new requirements following the commencement of the Work Health and Safety Act 2011, and the adoption by the ACT Government of the National Standard for Licensing People Performing High Risk Work. In addition there has been an extensive review of the information on asbestos. The Codes of Practice and Standards chapters in Part 3 have also been revised and updated.

This publication will soon be available as an EBook in the ePub format suitable for reading on mobile devices.

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On Friday 10 May the CCF Earth Awards were held at the newly opened National Arboretum.

The Earth Awards are the most prestigious awards in civil infrastructure including; roads, bridges, railways, marine structures and utilities that are the economic veins and arteries that link the Australian community.

The CCF Earth Awards 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.

Cord Civil - Project value $5m - $20m

This year’s awards were held at The National Arboretum, Canberra’s newest attraction, located just six kilometres from the centre of Canberra. It is home to 250 hectares of forests with panoramic views over the Capital’s Parliamentary Triangle, Lake Burley Griffin and the central valley of the ACT. The Arboretum was part of Walter Burley and Marion Mahony Griffin’s vision for a garden city.

This year’s ACT 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.

Ward Civil & Environmental Engineering - Project value $1m - $5m

Senator the Hon Kate Lundy was guest speaker at the evening and entertained the crowd with stories from her time as a labourer, working within the industry.

Further, Master Impressionist, Keith Scott kept the crowd entertained with his multiple impressions from cartoon characters, to politicians, to movie stars.

The National Arboretum proved to be an exceptional venue, and one worth visiting again.

Trevor Gossati, National Chief Executive Officer, CCF

www.civilcontractors.com

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Brown Consulting

The National Arboretum

CE Industries

25 Years

The evening also provided an opportunity to recognise those long standing members of the Master Builders Association of the ACT. Here we celebrate 25 years of continuous membership.

President of the Master Builders Association of the ACT, Simon Butt was there to present the certificates to our long standing members.

Waco Kwikform

Senator the Hon Kate Lundy, Senator for the ACT

Cardno Young

Guests enjoy the evening

Eastcliff

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Downsizing funds could help national building sector The Budget includes $112.4 million for a national trial to assist senior Australians to downsize to a home more suitable to their needs without reducing their Age Pension.

From 1 July 2014, senior homeowners who have owned their family home for at least 25 years and who decide to downsize will have the option to invest surplus funds (up to $200,000) in an account. The funds invested in the account, which earn interest, will be exempt from the Age Pension means test for up to 10 years.

In addition, the Government announced it will look to preference projects that embrace ‘universal design principles’ for the next 10,000 National Rental Affordability Scheme places. “Universal design supports independent living arrangements for both older people and people with a disability,” Budget documents said.

Master Builders CEO Wilhelm Harnisch welcomed the move.

Mr Harnisch said the current aged pension rules are locking many older Australians into staying in a home that no longer suits their needs because they are fearful revenue from the sale could lead to a reduction in their pension income and associated benefits.

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“The current rules lock in many older Australians into homes that do not suit their needs. Many of these people do not have sufficient income to make improvements to their home such as bathrooms, modified entries and other design aids to make living in the home more comfortable and safe,” Mr Harnisch said.

“Master Builders is continuing its efforts working with Government and industry to construct new housing that meets the needs of older Australians and those who wish to ‘right-size’ their accommodation needs,” Mr Harnisch said.

The Government said it would also like to see State Governments assist seniors who wish to downsize by introducing or improving concessions on stamp duty, and therefore removing a further impediment to downsizing.

,

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Experience. Range. Service

now” “...people in the k

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Main photo: Lowering the roof into position

lifiting

the

ROOF

PBS Building demonstrate whs initiative of erecting roofs while keeping workers’ feet firmly on the ground.

Increasing emphasis on work safety has sharpened the quest for better ways to install wall frames and roof trusses, constructing the roof before the walls on the slabs and craning the complete structure in to place. PBS Building (PBS) are leading the way in reducing the risk of ‘fall from height’ on their “Isabella Gardens” Development.

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Custom Steel Frames (CSF) initiated roof lifting on projects in the early 90s starting with truss only assemblies, then onto trusses with overhangs and air-conditioning ductwork installed and more recently with finished roofs sporting fascias, gutters and all the trimmings.

This technique shows the strength and accuracy of this truss systems, and innovative builders have embraced this method to work safer with the added benefits of being faster, less strenuous and without the cost of the mandatory perimeter fall protection technique, it requires less workers working at ground level and gives everyone two hands to work with.

PBS have observed these roof lifts and initiated an innovative process to make it easier, quicker and safer. With this information PBS with CSF have developed risk assessments, safe work method statements and engineering solutions to add efficiencies and limit risks with the lifts.

Each roof lift has different space available, site conditions and obstacles which can change the method of assembly. PBS use thier pool of knowledge to assist their customers in finding the best method for each job.

Roof assembly and lifting required a collaborative approach from all stakeholders working together to ensure the process was seamless, the outcome was achievable and commercially viable. It also heightens the search for safer and alternative building methods.

Left to Right: Preparing the slings for the lift / Workers putting the roof together at ground level / Cleaning the roof before the lift.

Industry Collaboration The “Isabella Gardens” Development comprises of 123 Individual Living Units (ILUs), combined with a Community Clubhouse facilitiy based in the suburb of Isabella Plains in the Tuggeranong Valley of the ACT. The units are designed and purposely built to service the ageing population of the Canberra region, developed by Lend Lease Retirement Living. The construction type of the villas are a traditional build form with a “twist”.

This initiated a business trip to Dubbo to investigate the frame and roof manufacturer Custom Steel. PBS Building combined with Blue Scope hired a bus where they took their plumbers, carpenters, PBS staff and client representative across for the day to Dubbo.

PBS developed ideas and models with CSF to create the structural design requirements for the roofing frame then moved into engineering the build form for the roof lift system.

Holding zone

The lift

“After several weeks of

Stage 1 being 16 ILUs commenced in February 2013 with the project on track for completion in June 2013, this includes four display villas, Stage 2 being 19 ILUs is forecast to commence within the next month.

Lend Lease Retirement together with Blue Scope Steel and Custom Steel (Frame and Roof manufacturer Dubbo) in consultation with PBS Building reviewed the possibility of developing a construction methodology to prevent fall from heights risks, by constructing the roof in its entirety including all roof services and penetrations on the ground and then craning the entire roof in place onto the wall frames. In order to facilitate such an industry initiative there was significant design development required from all stakeholders to ensure the construction and delivery could be achieved.

continues over leaf>

After several weeks of consultation with Custom Steel engineers to lock away the design and the risks associated with this delivery model, PBS then proceeded to document the process and complete the necessary consultation in achieving this WHS initiative, reducing “fall from height” risks.

PBS has also submitted this as part of the Master Builders & Cbus Excellence in Work Health and Safety Awards for Residential Construction, and is a finalist in this category.

consultation with Custom Steel engineers to lock away the design and the risks associated with this delivery model, PBS then proceeded to document the process and complete the necessary consultation in achieving this WHS initiative, reducing “fall from height” risks.

”

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Lowering the roof into position

lifting

the

ROOF

We spoke with Warren Ahrens from PBS Building and asked him about this system, and his experience with lifting the roof.

Q&A Can you explain how this system works?

While the roof lift concept is not new to the construction industry the roof lift as a fully completed roof system being lifted is revolutionary. The concept that has been initiated at the Isabella Gardens Project calls for the roof system to be fully completed and once installed, will not require workers to access the roof to conduct any works whatsoever.

The system is a fully welded steel wall frame and roof truss design, tihs gives the system more strength and rigidity throught the ‘lift’ and installation. The truss system’s unique design allows for the lifting loads to be spread out throughout the entire system thus reducing the stress on any one point during lifting. Another integral part of the system is the engineered lifting brackets design to ensure the roof could be lifted from the perimeter and removed without accessing the roof.

The carpenters mark out the slab as per a conventional build. There is an open web perimeter girder frame which serves as both the top third of the actual wall frame as well as the structural stiffening beams for the roof trusses when lifted.

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The height of the perimeter girder frame also allows for the fascia and gutter working height to be approx 600mm off the ground.

Firstly the perimeter girder frame is installed as if it were a mini wall frame and packed and levelled with a laser level. The trusses are erected on girder frame as per a conventional roof only at ground level with no fall from Fixing the roof into place

height issues. As we are constructing duplex units the firewall provisions are installed insitu with the trusses and any roof penetration and/or roof mounted services are installed at ground level as well. When the roof is complete the lifting beams are specifically placed around the perimeter of the roof under the fascia and gutter to facilitate the lift. The roof system complete with the attached girder frame system is then lifted as one and moved to a safe lifting zone where it hovers at approx 600mm of the ground whilst the frames are installed. The wall frames are then erected in exactly the same position as the girder frame system was,

ensuring the top plate is perfectly aligned to receive the roof when it is put back into position and the perimeter girder wall is then secured to the wall frames to complete the process.

Why did PBS decide to begin using this system rather than traditional methods of roof installation?

PBS had been working with our client on pricing the project from design conception.

During these discussions the possibility of the roof lift was mentioned by our client as a Work Health Safety initiative they would like to investigate as an opportunity at Isabella.

They had previously floated the concept but had not proceeded with the method to date. PBS seized the opportunity and coordinated the design meetings and ratified the buildability of the “Roof Lift System”.

The driving force to facilitate the Roof Lift System was to reduce fall from heights risk and demonstrate a WHS initiative & another option to standard building processes.

Once these parameters were exceeded, the feasibility completed, design was the next phase. The traditional build form method was not entirely overlooked and was offered as an alternative however based on all the information our client decided that the roof lift was the way they wanted to proceed for

David Hughes, Site Manager & Mark Hoskings of Custom Steel Frames

“There is a commercial cost

to managing WHS systems in any business, but what is the measurable cost to our industry, and community, if a significant injury or worse, a fatality occurs on site.

Immeasurable.

Warren Ahrens

the project and demonstrate a proactive approach to reducing the most significant risk, “fall from heights”.

How has this system been received by those in the industry? Has there been any initial resistance?

Initially there were some raised eyebrows as to how it would be achieved. PBS worked primarily in house on the design and feasibility of the concept in close conjunction with Arthur Hosking (Principal, Custom Steel Frames, Dubbo). His previous expertise and knowledge coupled with his engineering qualifications were invaluable and without him the concept would not have been achievable. Bluescope Steel have been actively involved and their input and assistance coupled with their exuberance to make this succeed has contributed greatly to the success of the concept. Once the design was locked away, PBS Building, Custom Steel, Bluescope and the Client facilitated a field trip to Custom Steels factory in Dubbo to go over the design fabrication samples in CSF’s factory. PBS has also arranged for various sub contractors who would be working on site to attend that would serve as a research and development process. By the end of the day they were all impressed and excited and keen to give it a go. The

”

concept certainly has potential to be used throughout the industry moving forward.

Ongoing improvements to a process like this are inevitable through education and knowledge gained at the coal face.

Q: Wokers safety is obviously of paramount importance - can you explain?

Have you realised any other benefits from using this system?

Working at Heights is an extremely high risk activity. Any time you can reduce the risk and possibility of a worker being injured through a fall from heights is a no brainer for all concerned. It is fair to say that the safety factor of this project far outweighs any negatives thrown up. The time savings between the steel roof lift and a conventional build is demonstratable, however this system is not cost effective to build as a one-off approach priced against the standard industry procedure. There is a commercial cost to managing WHS systems in any business, but what is the measurable cost to our industry, and community, if a significant injury or worse, a fatality occurs on site. Immeasurable.

Do you expect to see more companies using a system such as this in the future?

That is a very interesting question as we are currently in a very competitive market where deadlines are tighter and the cost of doing business is not reducing. In order

“

There is continued pressure on our industry for a more collaborative and proactive approach to system improvements with WHS, this construction method can only be a significant step forward for industry demonstrating safety initiatives in reducing “fall from height” risks.

for this type of innovation to succeed all the parties involved need to be 100% committed to achieve the same outcome.

The system works, we have proved that, and the many positives far outweigh the negatives. There is continued pressure on our industry for a more collaborative and proactive approach to system improvements with WHS, this construction method can only be a significant step forward for industry demonstrating safety initiatives in reducing “fall from height” risks.

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Survey

Membership Survey - Prompt payment is a critical issue for the construction industry.

Online Survey Results - in brief Prompt payment is a critical issue for the construction industry, as non-payment and delays in payment can have a dramatic impact on the viability of the industry, especially on some of the smaller operators who are not in a financial position to sustain extended periods of non-payment.

The nature of the industry is such that payments lag behind work-in-progress where a builder, owner, principal contractor or developer, has financial problems and accounts go unpaid, causing these lags to increase. Contractors and suppliers who continue to service a project, despite nonpayment, can carry large exposure to their clients. This has a flow-on domino effect as contractors also have debts to suppliers and their own workforce.

How would you describe your principal type of business?

Commercial builder residential builder sub-contractor civil contractor professional supplier / manufacturer other

What is the annual turnover of your business?

LEss than $1million $1m - $2m

We recently conducted a survey of our members, the results of which are provided here, and the responses to the survey highlight the potential problems that confront our industry with non payment and delays in payment. The number who responded to the survey, as a percentage of those sent the survey, suggests that this is a very important issue for the industry. The survey was directed at principal contractors, professionals, subcontractors and suppliers and civil contractors and specific questions were asked regarding non-payment and, specifically, unfair payment terms. Read through the survey results and the comments from individuals, which are interesting.

Once the work is done and certificates issued there is no incentive to hurry payment. Even with the use of the promoted payment clause under the 2008 Act.

12.5% 33.1% 24.4% 5.5% 8% 9% 7.4%

$2m - $5m $5m - $10m greater than $10m

29.3% 17.8% 20.1% 13.2% 8%

In 2012/13, would you say that it is taking longer to be paid from previous years?

52.1% No 47.9%

YEs

Do you find that some of the reasons being given for non-payment are disputes regarding the quality of work, or the service provided?

25% no - quality of work 64.5% yes - service provided 18.9% no - service provided 62.3% YEs - quality of work

Do you find that final payments under the contract are typically the most difficult to obtain?

YEs No

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69.6% 30.4%

e

Membership Survey - Prompt payment is a critical issue for the construction industry

What impact is non-payment, or delayed payment, having on your business?

Creating serious cash flow problems Difficulty paying contractors could lead to insolvency other

57.1% 55.2% 21.8% 26.2%

Are you aware of the dispute resolution processes that are available to you when dealing with non-payment or delayed payment?

71.4% No 28.6%

YEs

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Some clients try to extrac te piece of valu e out of you very throughout the contrac t only to rev eal their true colours for the final payment.

The worst thin people exp g is that most ect this to be part of the proces s ev written into en though it is not the contra cts.

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They normally use the final payment as a bargaining tool for the next job i.e I can’t pay at the moment but once we get into the next job you will be paid. They have also held back percentages with disputed quantities.

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Comments

d as s are being use “Defective” work ential opers and resid a tool by devel nal ld disproportio clients to witho raise an ney. They may amounts of mo defect all item on the issue with a sm bill as a final $100,000 list and not pay . a consequence

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Most of the rea payment are sons that the late is the o wners blame the bank for ta k in long to get g to evaluation s and to transfer the mo the case the ney, I think more y dont send it to the bank until it is a day or tw o before it is due.

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not lending More often than given as the authorities are npayment or no reason for late re ally though the payment. Typic to make a final is a reluctance t use at that poin payment beca y the ght to be lost b control is thou client.

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I have found that the bu ilders are making any excuse poss ible not to pay on time . All the pa p er work we have to fill in now is to make sure we ha ve missed something so they do nt pay unti l it gets sorted from my side or theirs.

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Corporal Ben Roberts-Smith VC, MG, Joins Master Builders National Conference Programme.

14 - 16 November, Canberra

C

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CMY

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The most highly decorated serving member of the Australian Defence Force, Corporal Ben Roberts-Smith VC, MG, has joined the speakers list for Building Australia, the Master Builders biennial National Conference.

Roberts-Smith’s motivational and inspirational presentation will take place at the National Conference Dinner hosted by Cbus on Friday 15th November at the Australian War Memorial. It will draw on the Corporal’s life in the military and actions while serving in Afghanistan where he earned a Victoria Cross and Medal for Gallantry on separate occasions.

The Victoria Cross is awarded for most conspicuous gallantry, daring or pre-eminent acts of valour, selfsacrifice or display extreme devotion to duty. The Medal of Gallantry is awarded for acts of gallantry in action in hazardous circumstances.

In the actions that saw his awarding of the nation’s highest honours, Corporal Roberts-Smith exposed his position while under attack to draw fire away from his colleagues and allowed them complete their mission. He has shown tremendous courage and leadership for his country, putting his safety and life at risk to allow the patrol to complete its objectives.

It is a rare opportunity and you’ll be inspired as Corporal RobertsSmith delivers his presentation Front Line leadership – The Battle for Success, focusing on leadership, teamwork, preparation and leading by example to inspire others to be the best they can be.

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His experiences in the Australian Defence Force will help you and your business to plan for success and get the most from your team.

Corporal Roberts-Smith’s presentation is just one of the many opportunities to advance your business during Building Australia – the Master Builders National Conference.

Held in Canberra from 14-16 November, Building Australia includes the 2013 Master Builders National Awards for Excellence in Building and Construction, site tours and a social program for partners and family.

To find out more or to register your interest in Building Australia visit: www.masterbuilders.com.au/events/national-conference

™

Ad for ACT winning projects.pdf 1 25/05/2012 2:51:23 PM

Master Builders Australia

National Conference to be held in CANBERRA in 2013 Celebrating the Centenary of our Nation’s Capital Save the dates 14 – 16 November 2013

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The Master Builders National Conference, Building Australia is the premier leading industry event that attracts Master Builders and their partners from around Australia delivering a comprehensive program of keynote speakers on topics relevant to today’s building and construction industry, a building exhibition and an exciting social and partners program. The conference will be held at the newly refurbished Rydges Lakeside Hotel Canberra and take in iconic venues such the Australian War Memorial, for an offsite evening dinner and Parliament House, Great Hall for the National Awards Dinner. www.masterbuilders.com.au Images: Australian Capital Tourism, Master Builders Australia 2011 National Conference.

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Is your builder a Master Builder?

Whether you are building a new house, renovating an existing house, adding a pergola or that extra room, make sure you use someone you can trust.

Ask the Question is My Builder a Master Builder All members of the Master Builders Association of the ACT go through a thorough application process.

Master Builders Code of Conduct Members of the Master Builders Association are bound by the National Code of Practice. For a copy of the Code please contact the Master Builders Association of the ACT or visit our website.

Master Builders Support of Consumers The Master Builders provides contracts to ensure that dealings between builders and their customers are clearly set out and both parties know what to expect.

Before signing a Master Builders contract or accepting a quote from a Member of the Master Builders you can contact our association for clarification on any questions you may have.

It’s a matter of knowing who you can trust.

Master Builders Association of the ACT 1 Iron Knob St, Fyshwick ACT 2609 PO Box 1211, Fyshwick ACT 2609 Tel: (02) 6280 9119 Fax: (02) 6249 8374 Email: canberra@mba.org.au Web: www.mba.org.au

Playing the blame game Many people contribute to a construction project. Builders, engineers, architects and certifiers all have varying, but overlapping, obligations to prevent things from going wrong. When the project goes pear shaped, the finger is usually pointed at the builder.

Can the builder share the blame?

Legal basis for apportioning blame In some cases the builder has a direct contractual relationship with the other wrongdoer(s) and can pursue them for breach of contract.

But even where there is no contract, each state and territory, including the ACT1, has a law that says liability for loss can be ‘apportioned’ between concurrent wrongdoers (although the precise wording varies slightly between jurisdictions). In the ACT proportionate liability applies to claims for negligence and also contractual claims where the contractual duty is in effect the same as the common law duty. This will be the case in most building contracts.

The existence of proportionate liability laws means that a party who is sued can join, and claim contribution from, any other wrongdoer who caused or contributed to the same loss. It also means that the plaintiff can only recover from each wrongdoer the portion of the loss to which it contributed. The court will consider the liability of concurrent wrongdoers even if they are not a party to the proceedings. The legislation then gives the plaintiff the power to pursue these concurrent wrongdoers for the apportionable part of the damage in separate proceedings.

What do you mean by ‘same loss’?

The High Court recently examined what ‘same loss’ means in Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd2. The case related to financing, but is relevant to builders because Hunt & Hunt were engaged in a ‘safety net’ role to protect Mitchell Morgan from someone else’s wrong, just as a certifier on a building project is engaged to protect the owner from the builder’s wrong.

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Mitchell Morgan asked Hunt & Hunt to draft mortgage documents to secure a loan of $1m from Mitchell Morgan to third parties. One of the third parties forged a signature on the loan documents, with the effect that the loan documents were void. Hunt & Hunt drafted the mortgage documents in such a way that the invalidity of the loan documents caused the security to also be unenforceable. Mitchell Morgan sued the fraudster and also sued Hunt & Hunt for failing to adequately protect it from the fraud.

The solicitors for Hunt & Hunt argued that the loss caused by the fraud (i.e. the unenforceability of the loan document) was different to the loss caused by their own negligence (i.e. the inability to enforce the security). The High Court held that this was an academic distinction. The loss was the loss of $1m loaned to the fraudster. It did not matter whether this was because the loan agreement could not be sued upon, or because there was no security to turn to for recovery.

Hunt & Hunt is significant because decisions of lower courts had demonstrated a trend towards agreeing with the type of academic arguments put forward by Hunt & Hunt, and therefore finding that failure of a ‘safety-net’ caused a different type of loss to the loss caused by the original wrongdoer3. As a result of Hunt & Hunt courts will now be bound to take a more pragmatic approach.

Does this mean everyone should join the certifier?

Court decisions against certifiers are rare. Owners generally turn first to their contractual rights, which are against the builder. Also, certifiers often have professional indemnity insurance not held by builders, and where insurers are involved the claim tends to be settled out of court.

However, last year the Victorian Civil and Administrative Tribunal4 held a private surveyor to be jointly liable (with the builder) for 50% of the rectification costs to adjust the pitch of an apartment roof5. The Tribunal found the certifier owed a duty of care under the Building Act 1993 (VIC) when issuing a building permit, occupancy permit, and for the required inspections. The defect was obvious, and the surveyor’s permits were relied upon by the purchasers buying units. The Tribunal decided that although the surveyor’s duty did not extend to confirming that the building was free from defects, it did have a duty to take reasonable case in certifying that the building work authorised by the building permit was work which would comply with the relevant law, and that the mandatory inspection had been conducted.

What does this mean for me?

Cases on the operation of proportionate liability laws have to date been scarce but the decision in Hunt & Hunt breathes new life into the legislation. For parties trying to recover loss, it means you are more likely to face an argument that the person you are trying to pursue is not liable for 100% of the loss, and you could miss out if you do not join all concurrent wrongdoers. For parties being pursued, it means you should be considering whether there is anyone else who should share the blame.

The construction litigation team at Meyer Vandenberg has specialist expertise in building disputes. If you would like more information on proportionate liability, or any legal issues arising out of a construction project, we would be happy to assist.

Footnotes 1 Civil Law (Wrongs) Act 2002 (ACT), section 20.

2 (2013) 296 ALR 107E. 3 St George Bank Ltd v Quinerts Pty Ltd (2009) 25 VR 666.

4 Jacobi & Ors v Motalli & Anor (Domestic Building) [2012] VCAT 659.

5 The other 50% of the damages were apportioned to the builder company, the entity of which was deregistered by this time and the director of which was deceased. The plaintiff was therefore unable to recover the second 50% of the rectification costs.

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Photo: Representatives of each charity accept their cheques from John Miller, Executive Director of the MBA, Chief Minister Katy Gallagher MLA, and Ross Barrett OAM, Chairman of the LDA.

$582,000 delivered to five local charities from the Franklin Charity House Project.

On Friday 17 May 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 cheques totalling $582,410 to five local charities.

The funds come from the recent successful auction of the Franklin Charity House, will go a long way to assisting the charities to provide support for the homeless and disadvantaged in the ACT.

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. A big thank you must go 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 Land Development Agency have also been an integral part of this project.

The five charities to benefit are Inanna, Toora Women, YWCA Canberra, YouthCARE Canberra and the Canberra Men’s Centre.

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Photos: George Tanchevski from Classic Constructions with the new owner of the Franklin Charity House Sheryl Lea Sutcliff, and Jerry Howard, Deputy Executive Director of the MBA. Below, the Franklin Charity House

What the proceeds will be used for.. .

YWCA of Canberra - are proposing to use the funds to contribute to the purchase and fit-out of two properties to meet the housing needs of elder single retired women who have insufficient superannuation savings to enter the rental market, but too much savings to be eligible for public housing.

Youthcare Canberra - will be 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 - propose 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. With the project funding, the service will open later in the evenings, and provide a wider range of services, survival kits, and consumables for clients.

Canberra Mens Centre - has an objective outcome to have service clients regain a valued place in society, including safe housing, employment and participation in social cultural and recreation activities. CMC have identified support worker training as the priority activity to be supported by the Franklin Charity House project.

Inanna – propose to use 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. Children have little connection with formal education and minimal exposure to joys of learning, discovery, and achievement associated with education.

THANK YOU to the following organisations who helped build the Franklin Charity House. This important community project would not have been possible without your support & generosity.

A Murray & Sons AC Blue Pty Limited ACT Recycling ACT Waterproofing Adbri Masonry All Homes Amber Tiles Amey Bros Argus Security Artistic Concrete Austbrokers Canberra Austral Bricks Barresi Painters Blue Scope Steel Borg Polytec Branco Boilers & Engineering Burning Log Megastore Caesarstone Canberra FM Radio Canberra Sand & Gravel Canberra Times Canturf Capital Balustrading Capital Cranes Capital Gas Works

Capital Insulation CB Richard Ellis Canberra Classic Constructions Classic Excavations Classic Tiling Coates Hire Complete Fix Set Plaster Cool Green Horticulture Corinthian Doors Corkhill Bros Sales Cre8ive CRT Building Products Cube Furniture Dan & Dan Forestry Dawe Constructions Designs By Mahony Domayne Easycare Landscapes Eclipse Carpentry Enviropest Ern Smith Building Supplies Euro Contractors Evatt Cleaning Fast Reo GLU

Greenlines Gardenware GWA Doors & Access Systems Herzog Steel Hewatt Earthworks Holy Sheet iiNet Independent Property Group James Hardie Australia Jason Marble & Granite Land Development Agency Leader Security Lincoln Sentry Luminous Photography Screencraft M & S Kitchens M & S Surveyors Master Builders Association ACT Mainbuilt Constructions MBA Fidelity Fund Melinda Boag Design Meyer Vandenberg Lawyers Monaro Mix Specified Concrete OPTEON Property Group Palmers TV Paragon Printers

Regency Screens Rent a Fence Rivoland Tiles Rovera Scaffolding (ACT) Scaffad Australia Scinergy Simeco Electrical Sky Fencing South Coast Stairs Southern Innovations Stoddart Canberra Stone Henge Tank Works The Good Guys (Tuggeranong) Thirlston Floor Coverings TransACT Trend Windows & Doors Urban Contractors W R Engineering Water Land Watson Blinds & Awnings Wattyl Paint Vision Photography Yass Nursery Win TV

(AUST)

37

National Update ACT roads spending in Federal Budget The Federal Budget included $3 billion in new spending on national rail and road infrastructure projects, although in keeping with previous Federal infrastructure programs the ACT gets little more than crumbs under the program.

The Australian Government is committing $300,000 to a new ramp metering system, a first for the Australian Capital Territory.

The introduction of ramp metering aims to provide a smoother flow of traffic northbound on the Tuggeranong Parkway near the Cotter Road on-ramp.

The $3 billion in new national infrastructure projects is part of a $24 billion in infrastructure spending now in the pipeline, much of which had previously been announced.

The projects include the Majura Parkway, already under construction. The project will continue in 2013-14.

The new funding for the ACT brings to $506 million federal funding to start, progress and complete infrastructure in the ACT including the completion of the Monaro Highway Duplication and Lanyon Drive upgrades.

The Budget says that not all of the new $3 billion in the Budget will be financed by the Federal Government with a new unit established in Treasury to advise on “the best financing structure to bring large, complex infrastructure projects to market.”

ACCC releases free online education program for small businesses Under Australian competition and consumer laws, small businesses have a number of obligations when dealing with their customers and other businesses.

Small businesses also have certain rights and protections under the law.

The ACCC has released a free online education program for small businesses to help you learn about your rights and obligations under the Competition and Consumer Act 2010 (CCA).

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The program is a simple, interactive learning resource which provides a broad overview of the key provisions of the CCA. It includes 10 modules covering topics such as pricing, advertising, consumer rights, selling safe products, unlawful competition and scams.

Each module should take about 15–20 minutes to complete and you don’t have to do them all—you can select the ones most relevant to your business operations. Most of the modules include a short self-assessment quiz where you can test your understanding of the topic.

’The ACCC is committed to helping businesses understand their rights and responsibilities under the CCA. We recognise that small business operators are busy running their businesses, and need simple, clear information which can be accessed at any time, at their own pace’, says ACCC Deputy Chair Dr Michael Schaper.

‘I strongly encourage small businesses to take advantage of this free, easy-to-use online education program to ensure they are aware of all the protections and obligations they have.’

The free online education program for small business is available at www.ccaeducationprograms.org

Changes to Superannuation The Budget confirmed details of a raft of changes to superannuation rules which the Government announced in April, including the re-introduction of a tax on the earnings of superannuation accounts which are in their pension phase – paying a retirement pension to their owners.

The reintroduction of a tax on earnings applies on to earnings over $100,000 a year and could make it less attractive to hold property in superannuation funds, with any capital gain counted towards earnings.

Under the change, from July 2013 individual superannuation accounts which are in their pension phase and which have more than $100,000 annual earnings will be taxed at 15 per cent on their earnings above $100,000, instead of being tax-free.

The change applies only to earnings and does not apply to pension payments – which had earlier been ruled out by Prime Minister Julia Gillard.

The change partially reverses the previous change by the Howard Government which removed all taxes on superannuation once the account owner begins drawing a private superannuation pension.

Other superannuation changes announced previously and confirmed in the Budget were:

•

•

Earnings below $100,000 a year will remain tax-free for accounts in pension phase and this threshold will be indexed to the Consumer Price Index.

From 1 July 2013, concessional contribution caps for people aged 60 and over will increase from $25,000 to $35,000. The higher $35,000 limit will be available to people 50 and over from 1 July 2014 and to all other superannuation contributors from 1 July 2018. The Government had previously foreshadowed it would increase the cap to $50,000.

•

Excess concessional contributions will be taxed at the individual’s marginal rate, plus an interest charge.

•

The Government will establish a Council of Superannuation Custodians to advise whether future changes in superannuation rules are consistent with a proposed Charter of Superannuation Adequacy and Sustainability.

Also announced as part of the superannuation changes: •

Pension deeming rules (which deem minimum rates of interest) will be applied to superannuation account-based income streams. All products held by pensioners before 1 January 2015 will be grandfathered indefinitely and continue to be assessed under the existing rules for the life of the product so no current pensioner will be affected, unless they choose to change products.

•

Deferred lifetime annuities will receive the same concessional tax treatment that superannuation assets supporting income streams receive. This reform will apply from 1 July 2014.

New measures in the Budget: •

amend the eligibility criteria for the low income superannuation contribution (LISC) to now pay individuals with an entitlement below $20. Previously, the LISC was not paid if it would be less than $20. Entitlements under $10 will be rounded up to $10.

•

The Budget includes additional funds to compensate members of four APRA-regulated superannuation funds in the Trio Capital Group that suffered losses due to fraudulent conduct.

The funds will be recovered through levies on APRA-regulated superannuation funds.

Construction from the Federal Budget

•

Parliament House will receive $7.6 million to fix balustrades and find an engineering solution to continuing problems with the main skylight.

•

The redirection of $100,000 from a feasibility study to a contribution to the construction costs of the Parliament House Walk between the Civic Centre and Parliament House.

•

$200,00 towards the design and construction of a National Boer War Memorial on Anzac Parade, to honour Australians who fought in the Boer War from 1899 to 1901. The cost of this measure will be met from within the existing resources of the Department of Veterans’ Affairs. The funding was announced in December 2012.

•

Essential maintenance work will be undertaken on The Lodge and the John Gorton Building. The work for the Lodge was initially due to be undertaken in 2012-13 but had been deferred due to technical problems with refurbishment of the heritage building. Funding will also be provided for urgent maintenance work required to address the deterioration of the facade of the John Gorton Building. The maintenance will ensure compliance with the Building Code of Australia, the Workplace Health and Safety Act 2011 and the Environment Protection and Biodiversity Protection Act. The Budget does not contain a cost of this measure “due to commercial-in-confidence considerations”.

•

The Federal Government will contribute $5.0 million to the ACT in 2014-15 towards the development of a dedicated service for children within the Emergency Department of the Canberra Hospital. This will help streamline and better coordinate paediatric emergency and inpatient services for around 15,000 children per year.

•

$900,000 is provided for ACT black spots and the ACT will receive $22.4 million for maintenance and road upgrades.

•

The Budget contains a one-off payment of $3 million to establish a Tax Studies Institute at the Crawford School of Public Policy at the Australian National University. The funding replaces a previously announced alternative funding arrangement for the Institute. It is unclear whether any construction will be funded out of the payment.

In keeping with the Federal Government’s limited new spending on building and construction, the Budget contained only a handful of new initiatives which may directly or indirectly produce new work for the national capital’s building and construction sector.

In many cases it is unclear how much of the new funds in the Budget for these projects will be available for capital works and how much for operations and other activities. Initiatives included: 39

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Building and Construction Recovery on the Horizon Master Builders Australia has released forecasts for the building and construction industry showing a mixed recovery across the three major sectors based on a positive growth path over the three year forecast period to 2015-16.

The forecasts are derived from a sophisticated model purposely built for the building and construction industry developed by Master Builders in collaboration with Independent Economics.

While the forecasts predict a positive growth path for the industry, the current economic climate presents many significant headwinds that may become impediments to the timing and strength of recovery in the forecast period.

Peter Jones, Chief Economist for Master Builders Australia said the return to more positive conditions for the industry implicit in the forecasts signals light at end of a very long tunnel for the residential and commercial building sectors, but does not herald a return to boom era levels.

“The key risks to the forecasts are frail consumer confidence, economic uncertainty, asset price volatility and ongoing softness in the labour market.

“The improvement in the Residential Building outlook comes from a very low base and the challenge remains for policy makers to address supply side inefficiencies and impediments that have contributed to the nation’s growing housing shortfall,” Mr Jones said.

Non-Residential Building Non-Residential Building work done is predicted to decline further in real terms in 2012-13 followed by modest growth in the following years. Growth is expected to be driven by commercial and industrial building sectors, contrasting with weakness in social and institutional sectors and education related building.

The three year forecasts to 2015-16 for the three sectors follows:

Residential Building The value of Residential Building work done is set to improve strongly, but from a low base, over the next three years after marginal growth in 2012-13. The value of residential building work done, in real terms, is forecast to grow from $46.2 billion in 201213 to $60.9 billion in 2015-16.

In terms of commencements, dwelling starts are predicted to rise to 164,000 in 2013-14, 179,000 in 2014-15 and 183,000 in 201516 – more than a decade after dwelling starts peaked at around 175,000 in 2004.

The underlying assumption is that low interest rates will work to release significant pent up demand after a long period of underbuilding that occurred at the same time as Australia experienced strong population growth.

“The stronger performing states are forecast to be Queensland, New South Wales and Western Australia.

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The Non-Residential Building sector contracted severely in the second half of 2012 as GFC stimulus programs ended. The value of Non-Residential Building work done is expected to improve to $33.9 billion in 2015-16, in real terms. However, by the end of the forecast period, level of work done is predicted to still be below that achieved in 2009-10.

“For Non-Residential Building, strongest performing states are forecast to be New South Wales, Queensland and Victoria, with industrial, retail and office building leading the way.

“The key headwinds and risks are poor cash flows, low margins and tough lending criteria. Investor confidence also remains low reflecting current economic conditions,” Mr Jones said.

Engineering Construction The Engineering Construction sector reached phenomenal heights during the resources investment boom. Despite signs the investment phase is beginning to peak, Engineering Construction activity is expected to remain strong.

Activity is forecast to increase 5.4 per cent in real terms to $122.1 billion in 2012-13 before falling back 12 per cent to over the following three years to a level of $108.0 billion.

“After very strong growth, Engineering Construction activity in the Northern Territory, Western Australia and Queensland is forecast to fall back, albeit remaining at extremely high levels in an historical context. Victoria and Tasmania look set to benefit from stronger infrastructure spending,” Mr Jones said.

“The forecast improvement in building and construction conditions is set against a background of the two speed economy with weak activity outside of mining, fiscal consolidation, poor sentiment, a high Australian dollar and the soft labour market.

“As a result, the forecast recovery in the non-mining related parts of the building and construction industry is mixed.

Performance by sector and state is highly variable, with Queensland, New South Wales and Western Australia set to enjoy better times after a number of challenging years.

“Master Builders, in forecasting improvement in building industry conditions, reinforces its call for ongoing microeconomic reforms at all levels of government in order to underpin the length and strength of the recovery. This will allow the industry to enter a sustained recovery and reclaim its role as one of the economy’s key drivers,” Mr Jones said.

Building and Construction Work Done

Residential Building (real) Non-residential building (real) Engineering Construction (real) Total Building & Construction (real)

2011-12(a)

2012-13(e)

2013-14(f)

2014-15(f)

2015-16(f)

$million

45,836

46,241

51,205

57,587

60,943

% change

-5.5%

0.9%

10.7%

12.5%

5.8%

$million

33,679

32,343

33,114

34,084

33,892

% change

-3.2%

-4.0%

2.4%

2.9%

-0.6%

$million

115,839

122,131

116,886

114,201

107,985

% change

34.6%

5.4%

-4.3%

-2.3%

-5.4%

$million

195,353

200,714

201,204

205,872

202,820

% change

2.2%

1.6%

2.8%

3.4%

3.3%

While the forecasts predict a positive growth path for the industry, the current economic climate presents many significant headwinds that may become impediments to the timing and strength of recovery in the forecast period.

41

Innovative Apprentice Mentoring to Meet Future Skills Needs A national scheme pairing young construction trades apprentices with experienced industry mentors is helping the building and construction industry address its future skills need.

Above left: The Hon Sharon Bird MP with CAMS Mentor, Rod Mitton and apprentices.

Above right: Master Builders Australia CEO Wilhelm Harnisch

A new scheme pairing young construction trades apprentices with experienced industry mentors is helping the building and construction industry address its future skills need.

The Master Builders Construction Apprenticeship Mentoring Scheme (CAMS) provides mentoring and support services to help guide apprentices through the challenges they face during training and set them up for a rewarding career. This national program is funded by the Federal Government through the Apprentice Mentoring Package.

The nationally initiated scheme was officially launched on 19 March 2013 by the Hon Sharon Bird MP, Parliamentary Secretary for Higher Education and Skills, at a function at Master Builders’ ACT Skills Centre.

More than 250 apprentices across the country have already signed up to the scheme, while more than 200 volunteer apprentice mentors are sharing their knowledge and experience.

Wilhelm Harnisch, Chief Executive Officer of Master Builders Australia said supporting apprentices is critically important to supply the next generation of skilled tradespeople to the industry.

“Mentoring is an important service, and was not widely available in the industry. Apprentices face many challenges during their training and the support of an experienced and specially trained volunteer mentor guiding them through these challenges is invaluable.

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“The value of work to be completed by the building and construction industry in the next ten years is estimated to exceed $2.4 trillion. In order to meet this demand, the industry will need 35,000 new skilled entrants each year, but the current apprentice completion rate stands nationally at only 58 per cent.

“CAMS aims to lift the apprentice completion rate to help industry avoid skills shortages and meet demand as activity resumes to normal levels,” Mr Harnisch said.

The CAMS project has been aided by the Federal Government’s Kickstart apprenticeship bonus, which aimed to attract 21,000 new apprentices by 30 April. The bonus provided eligible employers with a $3,350 bonus for signing on a new apprentice in construction and engineering trades.

“Apprentices who complete their studies have the opportunity to enjoy a personally and financially rewarding career in the industry. They will have the satisfaction of building family homes, schools, community and sports facilities, infrastructure and buildings which will be used and appreciated for generations,” Mr Harnisch said.

For further information regarding this initiative, please contact MBA ACT Apprentice Engagement Officer, Malcolm Beer.

Malcolm Beer, Apprentice Engagement Officer.

P 02 6280 9118 E mbeer@mba.org.au W www.masterbuilders.com.au/cams

2013 MBA Group Training Apprentice & Cadet Awards On 19 April 2013 MBA Group Training hosted the 2013 Apprentice & Cadet Awards at the Ainslie Football Club.

Friday 19 April 2013 saw the Master Builders Association of the ACT host the Group Training Apprentice and Cadet Awards for 2013. The evening is an opportunity for industry professionals and industry bodies to come together to support and recognise outstanding work by the current Master Builders Group Training apprentices and cadets.

The awards were divided into categories such as Plumbing, Carpentry, Civil, Bricklaying, ASBA, with the major awards; Outstanding Apprentice of the Year, and the para-professional category of Cadet of the Year being awarded to Jordan Lohse and Luka Manenika respectively. The Outstanding University of Canberra Student award was won by Peter Jamieson.

Photo: Gary Guy from the Training Fund Authority presents Outstanding Apprentice of the Year to Jordan Lohse.

A big thank you must go to all host employers who are able to make this initiative the success it is, and to all the sponsors who’s generous support makes the evening possible.

Thank you to our following event sponsors. ™

Photo: Gary Guy presents Outstanding Cadet of the Year to Luka Manenika.

Canberra

Photo: Professor Patrick Zou presents the award for Outstanding University of Canberra Student to Peter Jamieson.

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WORKFORCE

WITHOUT THE ADMINISTRATION

Master Builders Group Training invoices for the actual hours the apprentice, trainee or cadet works on the job. You are not invoiced for Public Holidays, annual leave, sick leave, RDO and training days. Master Builders Group Training is responsible for all administration of wages, Workers Compensation, long service leave and superannuation.

Master Builders Group Training employs field officers to assist you with hosting the apprentices, trainees or cadets. If you directly employ your own apprentice Master Builders can provide the training required.

There are benefits for the industry including opportunities for apprentices, trainees and cadets, on site learning opportunities and contributing to skilling the future construction industry.

MBA Group Training Ltd.

1 Iron Knob Street, Fyshwick ACT 2609 I PO Box 1211, Fyshwick ACT 2609 Tel: (02) 6280 9119 Fax: (02) 6280 9118 Email: training@mba.org.au Web: www.mba.org.au 44

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Canberra

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THE

BOTTOM LINE Sarah Tozer is a Mum to Callum and Jasmin and works fulltime as Design Manager for Australia’s largest privately owned development organisation Grocon. She currently resides in Melbourne.

Completing an apprenticeship in 1998 with the Master Builders Association as a Carpenter & Joiner, Sarah has taken these skills and worked with local and International construction firms such as Construction Control and Lend Lease on a number of landmark commercial projects around the ACT in both Construction Delivery and Project Management roles.

Having commenced ‘on-the-tools’ with MBA Group Training as a carpentry apprentice, Master Builders is proud to see that you have had a successful career in the construction industry, having worked for multinationals such as Lend Lease and progressing towards management positions, such as your current role as Design Manager for Grocon. Have you enjoyed your career in construction and do you miss being ‘on-thetools’?

I have thoroughly enjoyed my career and continue to do so. I cannot see myself ever leaving this industry. I consider myself fortunate to have had a clear understanding of what I wanted to do when I left school. When I joined the Master Builders Association as an apprentice I knew that my long term career was not going to be swinging a hammer. I saw the opportunity to complete an apprenticeship as an alternative pathway to other opportunities in the industry. And while I miss the physical fitness of being ‘on the tools’ I’m very comfortable with the direction that my career has taken.

One of the interesting aspects of your career is that you are a successful woman in what continues to be a male dominated industry, with current participation rates for women at 11.7%. In your experience, have you found the construction industry to be male dominated, and if so, has this posed obstacles in your career?

Stereotypes of years gone by where the norm was that only men participated in the industry was an accurate one and it continues today to still be very male dominated, however this is changing.

Construction is not alone as an industry where a gender bias applies. Male dominance has not been an obstacle in my career, it has at times felt like the glass ceiling cannot be broken, but I have 46

been very lucky to work with a number of very progressive forward thinking male role models within the industry at key points in my career. These people all share a common trait in not looking upon gender as a driver for opportunity or promotion, but see the value in my performance and skills as reasons to promote Sarah Tozer.

Master Builders would like to see more women in construction, particularly in the trades. What would you say about some of the ‘myths’ about women in construction, such as that they are ‘not strong enough’ and the work is ‘too dirty’ for them, or only appropriate for ‘masculine’ women?

My initial reaction to the myths is they all make me laugh! As humans we all have a great ability to adapt to situations, this is how you have to approach construction. The constant nature of change in this industry requires us to always think of different ways to carry out tasks. Women are very adept at looking at a situation and applying a high level of logic. Not strong enough we ask for help. Too dirty we know we can go home and take a shower. Only for masculine women? The strength of the mind far outweighs any physical strength in this world!!

Do you think that women might even make for better-than-average employees, given the determination they might require to enter what could be viewed as a non-traditional role?

No, I don’t believe that just because we are more determined makes us better than average employees. I have worked with a numerous people in this industry who are just as determined as I, who have a burning passion to turn up to work each day and contribute.

I believe better than average employees in any field are those that have a true passion for what they are doing and get excited by the prospect of what they are contributing and delivering.

How do you think businesses could encourage women into the construction industry, particularly into the trades?

Identification of alternative pathways from one role to another I think is desperately needed and would be invaluable to identifying to women that as you transition in life, so can your career.

If you can demonstrate that skills from a trade can then be readily transferable into other roles within the industry, then women would see the myriad of opportunities outside of swinging a hammer that the industry has to offer.

Canberra building news edition 3 - 2011

What would you say to women who are considering a career in construction?

Don’t be afraid – ask questions, ask for help, ask for opportunities – one of the great things about this industry is people’s willingness to give you time, make the most of it.

There are days and weeks and months that will be hard but those times are character building and while it won’t seem like it at the time, you will look back upon those, fondly recognising that they shape you and your work and management style as you move through the industry.

Finally, do you think that female participation rates in the construction industry will remain low into the future?

I think that while ever there is not a clear vision of the industry as a whole to women (pathways to other roles) then yes.

Multi-purpose training & Meeting facilities, tailored for you… and near you!

An interesting body of work would be to understand psychologically how women approach career choices, plan career progression, make decisions, how we transition through work from a maturity and life perspective then apply that in marketing the industry to women.

I think women see a barrier in completing a trade simply because at 50 they think they don’t want to be standing frames or climbing a ladder every day onto a roof which is fair and reasonable. So the alternative is to show them how to move into other roles in the industry after a period of time that does not require them to do those tasks but still positively contribute with the skills they have attained.

When you need room for a business meeting or a training program, there is always a professional solution in the Master Builders ACT training facility located next to the DFO in Fyshwick.

We offer rooms of various sizes, from comfortable one-on-one interview rooms, training and meeting rooms accommodating up to 60 people, or for that very special meeting the Master Builders ACT Boardroom is also available for hire. Your guests will not have to find or pay for parking as our site has 120 free car parking spaces.

With flexible room lay-outs and seating arrangements, choose classroom, theatre or boardroom style.

The dedicated Master Builders staff are trained to ensure your event is a success.

For further information contact, Master Builders Group Training - (02) 6280 9119

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In the picture!

Who’s making news this issue

Adam Kaufhold

General Manager, Rork Projects Adam Kaufhold is a skilled and experienced management professional with over 15 year’s senior management experience in the retail, hospitality, property and construction industries. Adam has worked extensively as a Managing Director and project lead across many capital cities in Australia.

Adam’s diverse portfolio of projects is spread across the commercial, government, defence, retail, hospitality, health, technology and services sectors of the property and construction industries. As senior project manager, Adam managed the provision of complex building and construction projects.

As the recently appointed General Manager of Rork Projects Pty Ltd, Adam’s responsibilities include proposal preparation, processing of technical and commercial contracts, tender preparation, assessment of tender submissions, management of company safety, environmental and quality systems and certification, commissioning and staff training in line with company policies and procedures, development and improvement of company policies and procedures, and client liaison and management.

Haelee Reis

Events Coordinator, Master Builders Association of the ACT Haelee Reis is the newly appointed MBA Events Coordinator.

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Coming from the Community Services Directorate, Haelee is closely involved with the charity project, Boundless Canberra. She is regularly seen rallying support, raising awareness and collecting donations. Haelee has a strong philanthropic drive that is infectious and loves being out in the community helping

where possible. Haelee believes that this ground breaking all abilities playground will be an icon for Canberra; both on a national and international scale, and is proud to be a part of the journey.

Dorte Ekelund

Director-General of the Environment and Sustainable Development Directorate in the ACT Dorte Ekelund’s great passion for planning has taken her from a Year 12 geography student in Wollongong to newly appointed Director-General of the Environment and Sustainable Development

Haelee is dedicated to her fast paced life consisting of three avenues of employment as well as university. Passionate about personal development and continued learning, she is frequently seeking out new, innovative and sometimes challenging methods of improvement.

Graham Cuthbert

Master Builders Association of Queensland Graham Cuthbert departs from Master Builders in Queensland this month, after a ten-year term as Executive Director and three decades with the organisation.

Under Graham’s guidance, Master Builders achieved its strongest ever financial position and property portfolio, and earned the respect of government and industry stakeholders. He was the driving force behind Master Builders response to Queensland disaster recovery efforts following Cyclone Larry in 2006 and the devastation caused by floods and Cyclone Yasi in 2011.

Graham established the Master Builders Foundation, which has so far provided around $4 million in donations to communities, families and individuals in need.

We wish Graham well in his retirement and will welcome his future involvement in the industry.

Directorate in the ACT. Dorte’s career has combined her love of geography, biology, art, sociology, psychology, engineering and architecture with economics a more recent edition. Her planning credentials have been honed in many jurisdictions from Perth to Sydney, and in Federal, State and Local Government. She can now call Canberra home again.

“I’m passionate about planning and I’m passionate about the environment, I have a great love for Canberra, greatly admire the inspirational work of Walter and Marion Griffin in the Griffin Plan and am looking forward to the work ahead as we prepare and improve our city for the future.”

Brian Welch

Master Builders Association of Victoria After 19 years as Executive Director of Master Builders Association of Victoria, Brian Welch has tendered his resignation in order to seek new challenges and look for new opportunities to apply his skills.

Brian will remain in a limited capacity to support MBAV in dealing with lobbying and supporting development of the Building Leadership Simulation Centre.

The 2013 Master Builders & Cbus Excellence in Building Awards.

Remodelling $200,000 - $400,000 - Prostyle

This month sees the 2013 Master Builders & Cbus Excellence in Building Awards.

With over 250 entries received, this year is set to be a very competitive one. Here is a small selection of entries from this year’s Awards.

Display Home $300,000 - $600,000 - gr8 constructions

heritage restoration or refurbishment - preferred builders

The 2013 Master Builders & Cbus Excellence in Building Awards will be held on 28 June 2013 at the National Convention Centre, Canberra. For more information, please visit: www.mba.org.au commercial project more than $20m - construction control 49

Tuesday 19 February Sponsored by Balmain Commercial

Valdis Luks

Acting President, Master Builders Association of the ACT The Hon Kate Lundy Senator for the ACT David Kimmorley Partner, Balmain Commercial

Tuesday 26 February Sponsored by CRD

Frank Porreca Ross Barrett OAM Simon Butt

CRD Chairman, Land Development Agency President, Master Builders Association of the ACT

Tuesday 5 March Sponsored by G.E. Shaw & Associates

Valdis Luks Mark McCabe Simon Butt

Managing Director, GE Shaw & Associates WorkSafe ACT Commissioner President, Master Builders Association of the ACT

Thursday 7 May Sponsored by St George

Graeme Swinton

Head of Premium Corporate & Property Finance ACT, St George Bank

Chris Uhlmann Valdis Luks

ABC News Managing Director, GE Shaw & Associates

Tuesday 5 March Sponsored by Village Building

Chief Economist, Master Builders Australia Managing Director, Village Building President, Master Builders Association of the ACT

BUILDING FOR The

FUTURe

Simon Butt

President, Master Builders Association of the ACT

David Dawes Director General, Economic Development Directorate Andrew Stewart CB Richard Ellis

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Peter Jones Bob Winnel AM Simon Butt

Tuesday 7 May Sponsored by CBRE / Village Building

The Master Builders Skills Centre Building Fund has been established for the benefit of non profit organisations for the acquisition, construction or maintenance of buildings for building and construction training.

The Trustee is seeking financial contributions and other gifts for the Building Fund from Master Builders members and the public.

The primary objective of the Fund is to purchase land and pay for construction where there are definite plans to construct a building to be used as a school by non-profit organisations for the training of apprentices and others

in the building and construction industry and any other industry as the Trustee may decide from time to time.

To make a tax deductible contribution to Master Builders Skills Centre Building Fund please contact Master Builders Association of the ACT.

Master Builders Association of the ACT 1 Iron Knob St, Fyshwick ACT 2609 | PO Box 1211, Fyshwick ACT 2609 Tel: (02) 6247 2099 Fax: (02) 6249 8374 Email: canberra@mba.org.au Web: www.mba.org.au

ACT

GEOCON prides itself on best-practice, maintaining clear lines of communication with customers, consultants and subcontractors and providing social and economic benefits to all involved.

GEOCON’s experience includes high-density multi-unit sites, medium density master planned estates and smaller suburban project homes.

ce

ng TO FIND OUT MORE ABOUT GEOCON PROJECTS, VISIT GEOCON.COM.AU

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ACT The company is focused on client relations, time management, financial security and sourcing innovative products to ensure a high quality build that is tailor-made and reflects the company’s core principles.

or

GEOCON is a Canberra-based property development and construction firm, specialising in residential and commercial development. In recent years, the company has also moved into hotel development and management with the launch of Abode – The Apartment Hotel in Gungahlin, Tuggeranong and Woden.

Call Kristy White now to find out how our Portfolio Management team can offer you more.

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At Ray White Civic, we can help you get more from your investment property.

Our Portfolio Management team follows a “zero tolerance” policy on rent arrears, so you can count on your rent being paid when you expect it, plus a strict communication process to keep you in the loop if something changes.

Kristy White Property Management Ray White Civic M: 0422 577 023 Ph: 1300 079 229 kristy.white@raywhite.com www.raywhitecivic.com.au

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