OFFICIAL MAGAZINE OF THE MASTER BUILDERS ASSOCIATION OF WESTERN AUSTRALIA VOLUME 16 | NUMBER 1 | AUTUMN 2019
WA TOP HOME OF
THE YEAR
Julie Bishop calls for gender balance in construction
10
Changes ahead for construction in Perth
14
What builders want in the federal election
17
Housing excellence awards
25
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CONTENTS
OFF ICIA L MAG AZIN E OF THE MAS TER BUIL DER S ASS OCI ATIO VOLUME
16 | NUMB ER
1 | AUTU MN
On The Cover
19
WA top home of the year Paradigm Construction
MBAIS .indd
FOREWORDS
Julie Bishop supports women in construction............. 10
Julie Bisho p calls for gender balan Changes ce in const ahead for ruction constructio n in Perth What build ers want in the feder al election Housing excel lence award s
1
23/2/19
10 14 17
5:41 am
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Affordable housing and Keystart................................. 12 How Perth will change in the next construction boom... 14 Economic forecast gives hope to WA builders............ 16 Federal election update............................................... 17 Branches..................................................................... 21
Rawlinsons
17
facebook.com/rawlinsonswa @rawlinsons_wa
AWARDS Sundowner celebration of member achievements......23
AUS TRA LIA
WA TOP HO ME OF
Director's File.................................................................6
REPORTS
N OF WES TER N
OF THE YEAR
President's File..............................................................5 From the Hill...................................................................9
2019
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MBAWA BOARD OF MANAGEMENT: President: Jason Kunkler Vice President: Philip Kemp Treasurer: Grant Burgess Immediate Past President: Rob Spadaccini Board Members: David Crothers, Michael van Dongen, Ray Kershaw, Steve McConkey, Isla McRobbie, Dan Perkins, John Ripp, Robert Shaw, Paula West. SENIOR STAFF: Director: John Gelavis Construction Director: Kim Richardson Membership Services Manager: Wayne Tardew Housing Director: Jason Robertson Business Director: Graeme Dix Marketing Manager: Kelly Dewar-Matusik Events Manager: Monique Milne Technical Advisor: Romina De Santis Training Manager: Jess Sethi Communications Coordinator: Susan de Ruyter HEAD OFFICE: 35-37 Havelock Street, West Perth WA 6005 Post: PO Box 167, West Perth WA 6872 Phone: (08) 9476 9800 (Country) 1300 550 262 Fax: (08) 9476 9801 Email: mba@mbawa.com Website: www.mbawa.com REGIONAL BRANCHES: Albany-Great Southern: Linda Gibbs Ph: (08) 9841 6232 Bunbury-South West: Geoff Bosustow Ph: (08) 9721 6547 Geraldton-North West: Paul Kerr Ph: (08) 9921 5061 Esperance: Doug Backhouse Ph: 0437 184 366 SUBSCRIPTION ENQUIRIES: Master Builder is available for subscription at a cost of $55/year. Contact Master Builders’ reception via email at mba@mbawa.com for further information.
2019 Master Builders-Bankwest Housing Excellence Awards........................................25
UPDATES Health..........................................................................28 Training........................................................................29 Legal............................................................................30 Financial....................................................................... 31 Insurance.....................................................................32 Residential...................................................................33 Building Business........................................................35
MEMBERSHIP
11
23
Member Savings Scheme...........................................36 Tennis tournament.......................................................38 Personal Pars..............................................................39
ADVERTORIAL FEATURE Waterproofing defects and failures..............................40 2
28 32
Published by: ark:media Phone: +61 7 5629 5310 Email: marketing@arkmedia.net.au Web: www.arkmedia.net.au Managing Editor: Susan Guilfoyle Design Team: Andrew Crabb, Av Chidzey Advertising Manager: Yvonne Okseniuk Advertising Sales: Rose Delosreyes, Steve Clark Master Builder is the official publication of the Master Builders Association of Western Australia (MBAWA). It is produced four times per year and published by ark:media. The MBAWA was established in 1898 and is the state’s oldest building industry organisation. The MBAWA is part of the Australia-wide Master Builders movement. Master Builder is produced to keep members informed of matters affecting them. Opinions and/ or statements in any editorial and/or advertisements are not necessarily those of the publisher and/or the MBAWA. The publisher reserves the right to reject any material deemed unsuitable for publication. Other than for the purposes of and subject to the conditions prescribed under the copyright Act 1968, no part of Master Builder may in any form or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced, stored in a retrieval system or transmitted without prior written permission from the MBAWA or ark:media.
MASTER BUILDER AUTUMN 2019
ADVERTORIAL
Receive up to $25,000 when you take on an apprentice. The CTF can reduce the costs of employing apprentices in WA’s building and construction industry for MBA members. You can now claim your CTF incentives (details below) online! Visit ctf.wa.gov.au and click log in to create your individual or business account via a secure portal which will enable you to: • Lodge new claims • Track and monitor claims • Manage account users and permissions (for businesses) • Lodge and pay BCITF Levy • Track and monitor BCITF Levy projects attached to the secure account
CTF is also providing an extra bonus of up to $2,000 to eligible employers for the employment of women in non-traditional trades and a Mature Age (21 years or older) bonus of up to $2,000. Additional supplements for employment of indigenous and regional trainees/ apprentices bring the maximum grant available to a total of $25,000. The first is paid after probation and six months of continuous employment; the second at the half-way point of the indenture and the final payment is made after successful completion of the qualification.
CTF will also be making all payments for eligible claims by EFT. The CTF has a range of incentives for eligible employers of apprentices in construction trades, with up to $25,000 in incentives now available to help reduce the costs of adding a new apprentice to your business. The minimum standard grant available to an eligible employer is $3,000 (for a 12-month traineeship), rising to a maximum of $10,000 for a 48-month apprenticeship in core construction trade areas. In addition to the standard grants: CTF now provides a Trade Bonus of up to $4,000, a bonus of up to $2,000 to an employer of an apprentice that has successfully completed a recognised Certificate II VET-in Schools or pre-apprenticeship qualification.
Receive up to $25,000 to help train an apprentice.
MBA members will also receive the benefits of the grant from the CTF if hosting an apprentice through a group training organisation (GTO). The GTO claims the grant on your behalf and uses this funding to reduce the cost of employing and training the apprentice. This will result in a reduction in your net costs of hiring the apprentice through the GTO. Look for the note on the GTO’s invoice that shows your apprentice is being supported by the Construction Training Fund. Visit ctf.wa.gov.au/Industry/Funding Support or call 9244 0100 for more information about the CTF’s apprenticeship grants and other support programs for the construction industry. CTF, helping fund the skills that build your future.
Apprentices bring leading edge skills to your business and they help strengthen the building and construction workforce. That’s why the CTF provides up to $25,000 in grants for you to reduce the cost of training each apprentice you employ. For details on eligibility,visit ctf.wa.gov.au or call 9244 0100. To make a claim, go to ctf.wa.gov.au and click log in to create your account.
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08/03/2019 0825h
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PRESIDENT’S FILE
Governments will hear our voice on matters affecting our industry comprised representatives from 19 member-based industry stakeholder groups, as well as seven state government agencies and other industry related organisations. Master Builders provided four written submissions during this process and at the conclusion of the workshops, met with the Chair Mr Fiocco, to represent the views of our members. Prior to the release of the report, Small Business Minister Paul Papalia announced project bank accounts will apply to a wide range of state government projects where the total value of work exceeds $1.5million with the change coming into effect from 1 July 2019. This pre-emptive move by the government is a sign that security of payment reform and further legislative changes to our industry are very likely in the future.
Jason Kunkler President As President of the Master Builders Association I am very excited to be commencing my tenure at a time when we will be seeing significant change within the industry. I am also delighted with the recent appointment of our new Executive Director John Gelavis to head up our operations. I look forward to working with John and his team to build a better industry, a stronger Master Builders Association and industryleading support and advocacy for our members through this next phase in our industry. New Board I would like to welcome two new Board Members to our leadership team in Ray Kershaw and Paula West. I’m confident that with Ray and Paula joining our current board, we are in good hands to navigate Master Builders WA and our members through the imminent legislative changes that will present during 2019. Security of payment At the end of 2018, the final report to the Minister for Commerce on Security of Payment Reform in the WA Building and Construction Industry was released. The Master Builders Association was a key stakeholder in the Industry Advisory Group workshop process, which WWW.MBAWA.COM
Additionally, the state government announced a new Subcontractor Support Unit to be overseen by the Small Business Commissioner. The government indicated that the Commissioner will have the power to: • Compel head contractors on government projects to prove payment to subcontractors • Shield subcontractors from retribution for lodging complaints by allowing them to be anonymous • Conduct random and targeted audits, based on intelligence and tip offs • Make recommendations to government to sanction head contractors, ultimately impacting on their future project opportunities in Western Australia • Showcase best practice contractors in the state. According to the Government, the unit is expected to be operating in the first half of this year. One of the more significant recommendations in the report is the area of project trusts. This recommendation would see a deemed trust scheme apply, initially, to projects with a value of $20million or more and then, over time, applying to projects with a threshold value equal to or greater than $1million. While Master Builders has a strong view on the need to ensure the security of payment for all industry participants in the supply chain, we have argued against this change and the extent to which the report recommendation is suggesting trusts should apply. Master Builders has also this year provided a further written submission in response to the Fiocco report and looks forward to working with the new Commerce Minister John Quigley on any legislative reforms the government chose to implement.
State Budget The West Australian State Budget will be released in May by Treasurer Ben Wyatt, where it is expected that the government will continue to tighten its spending and focus on a position of net debt. Master Builders has submitted its budget recommendations including a focus on further stimulus for the housing sector through an increase to the First Home Owners Grant from $10,000 to $15,000 and an increase in the income levels for Keystart applicants. If adopted, these initiatives would aid in stimulating our industry as we continue through our recovery process.
On the national front Federal election With the election looming, both Master Builders Australia and Western Australia are well prepared to promote our policy agenda in support of our members and the broader industry. There are many key policy themes, which are identified in national CEO Denita Wawn’s article in this edition. As always Master Builders will be leading the way in its advocacy on behalf of one of the country’s largest industries. Master Builders National Business Leadership Awards Another new initiative is the launch of the inaugural Master Builders National Business Leadership Awards, which will recognise excellence within building and construction businesses. The awards are now open for entry and will close on 28 June. The award presentation will occur at an awards dinner in Melbourne on 22 August. For more information and advice on these awards, please contact the Master Builders events team. National excellence awards I am also pleased to announce that this years’ National Excellence in Building & Construction Awards will take place in the heart of our nation, at Uluru. Looking forward In 2019, I look forward to representing our members’ interests and progressing solutions to key industry issues that we face today. I also look forward to attending the many events and awards programs throughout our state, meeting with our committees, members and discussing challenges members are facing with the aim to understanding how we can support you both now and into the future. 5
DIRECTOR’S FILE
Look forward to changes and new directions Our members have always been the reason for our existence and membership is the key pillar in our strategic plan, which will focus on not only current membership needs but those of the years ahead. This will be extremely important as we start to identify the political, economic, social and technological forces that may change the future environment our industry will operate in. Based on this, we will ensure that Master Builders develops practical and professional services to support members through this everchanging and fast-paced industry. Our dedicated board, councils, committees and executive staff will continue to provide the highest level of advocacy and representation, enhancing our mission as the peak industry association for the building and construction industry.
John Gelavis Executive Director Change is said to be the only constant in life and I believe it’s true both personally and in business. I am pleased to begin this year as the new Executive Director of Master Builders WA and welcome our new and 56th President Jason Kunkler, Managing Director of PACT Construction. Together we usher in a new direction and a new generation of leadership to the association as we move into a time of rapid change in the industry.
Future leaders and committees To assist with addressing industry developments, I am pleased to acknowledge the hard work of our committees, including the important future leaders committee who are representatives from members’ organisations, aged 35 and under, charged with the responsibility of informing the association on matters relating to safety, training and innovation/disruptive technology. As we move forward, the advice from this committee and our others across the state will be invaluable in guiding our service and advocacy efforts. Apprentices, training and diversity Our approach to apprentices and training for our industry will also be critical as we transition over the next decade to an increased level of building and construction activity. Ensuring we have a well-trained, skilled and diverse workforce within our industry will
be extremely important. To achieve this, we need to further develop high quality training programs and promote a more inclusive and contemporary industry. Women in construction A great example of the strides we have made in diversity is the successful Women in Building and Construction (WinBaC) program. At the end of last year, we had the pleasure of hosting more than 200 members at an event with Julie Bishop MP. I was pleased to have our Master Builders Apprentice of the Year Aly Harper at the event, our first female winner. She was placed by Ms Bishop to honour her achievement, encourage other women to enter the industry and hopefully as a development experience which will benefit her future career. The WinBaC program will be further enhanced in 2019 and beyond to ensure all women within our industry are supported and encouraged to develop their careers. Additionally, we welcome Paula West onto our board, who is the first female builder member to be appointed in our 120-year history. Paula joins Isla McRobbie from Jackson McDonald who was our first female board member, appointed last year. Thank you It is an exciting time to be part of the Master Builders Association as we enter this new phase and I thank all our members for their tremendous support in 2018, which I hope continues through our journey to building a better industry for many years to come. Best wishes for the year ahead and I hope it’s a successful one for everyone involved with Master Builders.
Master Builders Association has a proud history, which has stood the test of time due to our dedicated and committed members and leaders with a vision for the future of the organisation. From our first president Robert Law in 1898 to today we have been working to build a better industry for our members and the community. Our vision is focused on members Our aim is to create a strong Master Builders WA to assist members in increasing the construction industry’s significant contribution to the state economy and the community. I believe the key word in that vision statement is members. 6
Executive Director John Gelavis and new President Jason Kunkler
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FROM THE HILL
Training is vital to the future of the building industry and the state
Sue Ellery Education and Training Minister
ACKNOWLEDGING THE SUPPORT OF OUR 2019 PARTNERS
Insurance Partner
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Training is critical to delivering on the McGowan Government’s Plan for Jobs and diversifying the economy. We are implementing a number of strategies to support local business and grow job opportunities. The TAFE fee freeze in May 2017 has stopped the hike in TAFE fees and is designed to encourage people back into training. The expansion and strengthening of Priority Start and the introduction of WA Industry Participation Plans will see the Government maximising the number of apprenticeships and traineeships created through government contracts and private sector activities in WA.
and traineeships and I will be announcing the key recommendations of the report very soon.
The state’s overall construction industry, which includes both residential and non-residential construction, currently employs about 11 per cent of the Western Australian workforce, making it the state’s second largest employment sector. We are starting to see green shoots emerge and with this increase in activity we expect to see more employers look to take on apprentices. I acknowledge those employers who invest in training even when business is still tough, you are investing in the future of the industry.
These are just some of the initiatives of this government to increase the number of apprenticeships and traineeships in WA. But it is the contribution of employers who employ apprentices and trainees and support and guide them through to completing their qualifications that makes a real difference to our young people and the future of our state.
The West Australian Government provides incentives for group training organisations to employ and support apprentices and trainees in state priority areas. Levies collected by the Construction Training Fund allow for a range of programs which promote training in the building and construction industry. This includes incentives of up to $25,000 for employers of apprentices.
The Government’s announcement to apply the Building and Construction Industry Training Fund (BCITF) levy to the resource sector will ensure that all sectors that rely on the state’s construction workforce contribute to the cost of its training and skills development. This levy has been in place for around 20 years and is invested in training incentives and support for employers or apprentices and trainees in the construction industry. Removing the exemption from the resource sector engineering construction work will ensure all industries undertaking construction work contribute to the training and development of the state’s construction workforce. We are consulting with the resources sector and construction industry to ensure the levy is disbursed to meet the training needs of the construction workforce in all relevant industry sectors. Western Australia has signed up to the Skilling Australians Fund partnership agreement which will create thousands of jobs for apprenticeships and traineeships. The $126million negotiated will provide funding for thousands of pre-apprenticeships and enable the government to better meet the state’s workforce priorities. The key to this partnership is a McGowan Government employer incentive scheme that will provide training support to employers including small business. Industry will be consulted throughout the development of the scheme. I also tasked the State Training Board with talking to employers and industry on ways to increase the take up of apprenticeships
Ms Ellery with Western Power apprentice Megan Feaver, who was named WA Apprentice of the Year at the WA Training Awards 2018
9
REPORTS
Call for gender balance in construction Western Australia’s favourite almost-PM Julie Bishop was a popular guest at the annual Women in Building and Construction lunch. Speaking to about 200 industry insiders at the Westin, Ms Bishop called on nations, organisations and other entities to work harder for gender balance. She was backed up by Bankwest Chief Operating Officer Shari Cosgriff, who cited figures on the gender pay gap in the construction industry. And, in an exclusive magazine interview, Master Builders’ first woman Apprentice of the Year winner Aly Harper talked about her experiences as the lone woman on major building sites across Perth. Construction is one of the last industries where women are still struggling to find a place but Master Builders is promoting change through the Women in Building and Construction committee, which aims to support women choosing a career in the industry with mentoring programs, training and working towards equality. Here are the stories of all three women, who are forging strong careers in the male-dominated worlds of politics, banking and building.
National women’s mentoring program wins support The new Women Building Australia Mentoring Program is proving successful. Mentors and mentees were surveyed after completing the program last year and overall satisfaction levels topped 90 percent. The national program, which was funded by the Federal Government, achieved excellent results, with 95 percent of the participants reporting some or all of their goals were attained and 90 percent satisfied with the match of mentor and mentee. Most participants rated their experience of the program as excellent with 35 percent nominating it as “one of the best things I’ve ever done.” 10
Bankwest Chief Operating Officer Shari Cosgriff, Master Builders Board member Isla McRobbie, Julie Bishop MP, CEOs for Gender Equity Executive Director Tania Cecconi, Cbus Super Fund strategic manager Kirsten Beck and Master Builders apprentice of the year winner Aly Harper
WinBac event at the Westin
Julie Bishop argues the importance of gender equity at the WinBaC lunch
Q&A with Julie Bishop and Master Builders Executive Director John Gelavis
All eyes were on Julie Bishop as she spoke to a receptive and attentive crowd
Closing the pay gap pay gap and previous research has shown that when employers take a proactive position and conduct a pay gap audit, things change for the better. “Looking again at the construction sector, how many employers completed that all-important pay gap audit?
Shari Cosgriff talks about the gender pay gap in construction
More than 80 per cent of Australians who work in construction are male and they earn at least a quarter more than their female colleagues, according to new data from the Workplace Gender Equity Agency.
“Just over a third in the last year, meaning around two thirds didn’t. “While it wasn’t the most glowing endorsement of the industry’s efforts to address the pay gap issue, the gap itself represents a wonderful opportunity for people to make a difference. “What gets measured, gets managed.”
Bankwest Chief Operating Officer Shari Cosgriff highlighted the gender pay gap figures in her WinBaC speech in November. “There are almost 125,000 people working in construction full time across the country and 83 per cent are men. These men earn over a quarter more than their female counterparts,” she said. “But there are things that can be done to narrow this
Ms Cosgriff noted that women in building, like women in banking, had historically been poorly represented as she introduced keynote speaker Julie Bishop MP, who followed up by pointing out that gender balance was also lacking in government. Both Ms Bishop and Ms Cosgriff referred to ‘industrial deafness’, saying women struggled to have their views heard and acknowledged by male colleagues. MASTER BUILDER AUTUMN 2019
REPORTS
Julie Bishop sets the challenge for more women leaders follow through,” she said. “I have always believed men and women bring vastly different perspectives in their world view.” She citied research showing women were transformational in their leadership style while men were more transactional. Women were more likely to build teams, use professional development to set goals and be empathetic. Men were more likely to set team goals, with less concern for individuals. Both approaches had merit but she said the transformational approach built greater morale and longer-term productivity. “Why wouldn’t you seek to have more women in your organisation bringing their particular perspective, skills and views?” she asked.
Julie Bishop answers questions
Australia’s first female foreign minister Julie Bishop says successful women should judge their impact by whether they have made it easier for others to follow. Speaking at the Master Builder’s Women in Building and Construction lunch, Ms Bishop noted that her successor in the role was another woman, Senator Marise Payne. “If we are to achieve gender equality, we need to ensure we not only break the glass ceiling but help others
“I believe nations, organisations, entities will be better served if there is greater diversity. We can all do better in attracting talented, competent women. No country on the planet has achieved full gender equality.” Ms Bishop said quotas were problematic but, as Foreign Minister, she set the challenge for the Department of Foreign Affairs and Trade to work harder to find qualified women and achieved targets of 50 per cent of women on its boards. “If you say work harder to find qualified women – I will not accept for a minute there aren’t qualified women to fill at least 50 per cent of those positions – you can achieve it,” she said.
Top apprentice Aly Harper wants more female colleagues on building sites Carpentry apprentice Aly Harper is usually the only woman on site at the major Perth construction projects where she has worked in the past couple of years. The Master Builders Apprentice of the Year winner said she rarely saw other women on the job at Optus Stadium and the new Ritz hotel. “Hundreds of people worked on the stadium and I saw maybe three women. At the Ritz, in terms of trades, I haven’t seen any other women and I’ve never had another female in all my classes at TAFE,” she said.
Cubic Occupational Safety Health and Environmental manager Mick Kociancic, left, seized the chance at the event to ask Julie Bishop to mentor Cubic apprentice Aly Harper
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“It was scary being mature age and an apprentice. I am double the age of most of the apprentices and at first I felt intimidated and out of place, so I just kept to myself and got on with the work.”
“We are looking for more people to take on leadership roles that we are going to so desperately need as the world is more contested, more congested, more competitive.” Ms Bishop said high-speed mobile, robotics, big data and cloud-based technology were changing the way we work and created an opportunity to re-skill the workforce. News of robots laying bricks in Perth had made her wonder about the future of bricklayers, she said, until she realised the intelligent judgement and skills of humans were essential alongside new technology in making businesses more productive and work more efficient. She offered women four pieces of advice. “Never let anyone else define who you are. Set your own high standards and strive to meet them. There are plenty of people who will set for you standards they can’t or won’t meet themselves,” she said. “Back your judgement, back your instincts. I find the times I don’t are the times I get into trouble. “Mentoring works. Find a male or female you trust, whose views you value, who has an interest in your welfare and well-being. “My last piece of advice is: You have got to be having fun. If you are not enjoying what you are doing you really should have a long, hard think about whether you are in the right position, the right job.”
At the age of 31, Ms Harper quit her office job to earn barely a third of the wage as an apprentice. But she has no regrets and has built relationships both with classmates and the men she works with at commercial fitout company Cubic. She is keen to encourage women into the building industry, though. “Women are not pushed towards trades. No one said to me at school: ‘You are good at this.’ I was pushed to go to university,” she said. “Attitudes are changing but probably not as quick or as much as I would hope. “I would love to see more women in construction. It’s awesome. People can enjoy the building for years and years and you can think: ‘I did that’.” She has no time for the old arguments about trades being physically demanding and therefore better suited to men, saying technique is the most important element of the work. The latest technology and equipment also help. 11
REPORTS
New housing plan helps both builders and buyers We are lucky in Western Australia to know that owning a home is not just a dream but an achievable goal. Housing Minister Peter Tinley kept that goal within reach last year with the release the Affordable Housing Action Plan 2017-18 to 2019-20, which builds on the on the Affordable Housing Strategy and increases the target from 30,000 to 35,000 homes for people on low to moderate incomes, with details of action across various levels of government to make this happen. As well as increasing the target, the plan commits to delivering 7,700 homes for people on low to moderate incomes, as well as investing in new construction that will support $2.3 billion in economic activity and almost 6,000 jobs over the three-year plan. Master Builders Executive Director John Gelavis said this was a great step forward for both the community and the residential building industry. It provided a clear blueprint for dealing with all types of tenure, alternate pathways for lower income earners and highlighted the focus areas that will enable the plan to work. Two of the focus areas revolve around “more options and pathways across the housing continuum to help people reach their housing goals” and “broaden sources of capital to augment government investment”. These focus areas involve the ongoing support and development of Keystart, which is a program unique to Western Australia and gives many first home buyers the chance to enter the housing market.
New talent on Board
Paula West
Ray Kershaw
Experienced industry professionals Paula West and Ray Kershaw have been welcomed to the Master Builders WA Board. Ms West, the General Manager of Inspired Homes, is the first woman builder to join the Board. She follows Isla McRobbie from our legal partners Jackson McDonald, who became the first woman appointed to the Board last year. 12
Master Builders is a strong advocate for Keystart and welcomed the recent announcement by Housing Minister Peter Tinley to extend the loan book of the scheme by $420.9million, as part of a suite of measures to improve housing affordability for West Australians. Mr Gelavis said the move would help the industry through one of its greatest downturns. “With detached housing commencements falling below the 10-year average, decline in housing loans to investors and a sluggish renovation market, Master Builders has been calling on the Government to consider a stimulus package to support residential builders leading up the 2019 budget,” he said. “Along with the additional support for Keystart, if the First Home Owners Boost of $5,000 was reinstated it would assist builders, trade contractors, suppliers and manufacturers who employ many West Australians. “Now this significant announcement has been made, it is critical to adjust the income level requirements of singles, couples and particularly families, which will allow many who do not qualify for either Keystart or a major financial institution to secure finance to build a home.”
A major life goal for many West Australians is to get the keys to their own home.
Keystart’s offer is unique in the West Australian home loan market: • A lower deposit scheme. The deposit required in the metropolitan area is 2 per cent of the property purchase price and up to 7 per cent in regional WA depending on the property price and its location. For first home buyers, the first home owner grant can contribute toward the deposit. • No lenders mortgage insurance (LMI). LMI is typically required by other lenders if clients fall short of their deposit requirements. Keystart saves clients between $8,000 and $10,000 by charging no LMI. • No ongoing monthly account keeping fees. Clients must earn a sufficient income, usually from employment, to meet their home loan obligations comfortably.
People hoping to buy or build a home are facing significantly tighter lending conditions and credit controls. The Keystart program was established by the State Labor Government in 1989 to provide low-deposit home loans to West Australians unable to meet the deposit requirements from mainstream lenders. Since then, it has helped more than 100,000 people to own a home.
Master Builders welcomes both the Affordable Housing Action Plan and the Keystart changes. We will continue to work with Keystart, the State Government and all stakeholders on behalf of members and the wider community to assist this process and the overall pursuit of affordable home ownership, which will contribute greatly to the economic and social outcomes for all West Australians.
Ms West has been in the building industry for more than 30 years and she is skilled in business management, leadership, administration and customer service.
“I am delighted to have joined the Board as it has been an aspiration since joining the housing council some eight years ago.” Mr Kershaw said.
“I am honoured to have been recognised for my knowledge and experience in the building and construction industry by being elected,” she said.
“To be part of a group of leaders who share the same ethos on creating a better industry is an honor and I hope that I may serve the members and industry well during my time.”
“The Master Builders Association is a highly recognised organisation and prides itself on representing and lobbying for its members. I am proud to be an active contributor to such a professional and driven association.” Mondo Exclusive Homes Director Ray Kershaw started in the building industry as a carpenter and launched his own renovation company at the age of 20. He has won the prestigious Master Builders awards of both the Ric New Rising Star and the Ric New Medal.
The Master Builders WA Board members are: President Jason Kunkler of PACT Construction, Immediate Past President Rob Spadaccini of Spadaccini Homes, Vice President Phil Kemp of Alliance Builders, John Ripp of EMCO Building, David Crothers of Crothers Construction, Robert Shaw of Daly & Shaw Building, Dan Perkins of Perkins Builders, Michael van Dongen of Encon, Steve McConkey of Multiplex, Grant Burgess of Ernst & Young, Isla McRobbie of Jackson McDonald, Paula West and Ray Kershaw. MASTER BUILDER AUTUMN 2019
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REPORTS Several high value construction projects are going ahead at Elizabeth Quay this year
Perth’s evolution guides construction growth When the promised upswing in construction comes, it won’t be a boom like we’ve seen before but a controlled rise. Master Builders construction director Kim Richardson predicts shopping centres and high-rise developments will be the force behind the rise in new construction later this year. During the last boom, skilled and unskilled workers were lured by the offer of high incomes to resource projects across the state, while Perth projects struggled to attract tradies but this time the city will be a major centre of activity. “The resource sector is picking up without question but there won’t be the volume of big projects being constructed simultaneously and the acute labour shortage we saw last time,” Mr Richardson said. “The industry has adequate labour to meet the construction needs but there will be a shortage of workers will certain skills. “Some of the resource jobs, like undersea projects, require specialist workers rather than big construction crews. “But we will see a rise in construction work and a steady recovery over two or three years.” Shopping centres across the metro area will lead the way. The trend began with redevelopments at Carousel, Whitford City and Midland Gate retail hubs which are being followed by major revamps at Morley Galleria, Garden City, Karrinyup and Innaloo. 14
The $800million Karrinyup revamp began late last year and the planned Westfield Innaloo development valued at around $500million starts in mid to late 2019, while the $750million Garden City Shopping Centre overhaul is likely to start towards the end of the year. “The phased approach of starting these major shopping centre redevelopments allows better management of labour demands to avoid shortages and reflects the increasing confidence in a rebounding WA economy,” Mr Richardson said. “Rising consumer confidence underpins an improving state economy and lays the foundation to make these projects commercially viable.” The new building work will turn Perth’s shopping centres inside out. Retail complexes are traditionally bright and welcoming on the inside but from the outside they have windowless, fortress-like walls barricaded by acres of car parks. The construction work will open them outward to face their communities, with a strong focus on restaurants, cafes and entertainment as well as residential developments. They won’t just be shopping centres but places to live, work and play. Along with suburban shopping centres, there will be building work available in the CBD. The Raine Square revamp has been welcomed and next will come an upgrade to Carillon arcade plus several new luxury hotels. The Ritz Carlton at Elizabeth Quay is close to completion and the development, which includes 205
An artists’ impression of the Garden City Shopping Centre redevelopment
hotel rooms and 379 apartments, has been valued at $500million. The project was one of those named by Business News recently in an article identifying $130billion of major projects under way or planned in WA. Resources dominate the list, with 19 of the top 30 projects in the mining, oil and gas industries but property is the next biggest sector. Mr Richardson predicts high-rise apartments will account for an increasing share of construction work, as we prepare for the Perth population to grow from two million people to 3.5million by 2050. At Belmont Park, Golden Group is going ahead with a $3.8billion development which is expected to create 4500 apartments, 60,000sqm of office space and 40,000sqm of retail – along with 25,000 construction jobs. The long-term project will be developed in stages, with a watchful eye on market demand. Elizabeth Quay is the centre for other high-value projects such as the $360million Chevron tower being built by Multiplex and the Brookfield $1.1billion twin towers, which will include 220 apartments, 50,000sqm of office space, 3300 sqm of retail and a five-star hotel. MASTER BUILDER AUTUMN 2019
REPORTS
The overhaul of Karrinyup Shopping Centre is designed to give it a more open, community atmosphere
The $450million 3 Oceans twin-tower development at Scarborough has been given the go-ahead and there are even stirrings with the Lendlease project Waterbank, near the Causeway, which Mr Richardson says is valued at around $1billion but has been dormant for some time. WA’s ageing population is also reflected in a growing number of aged care developments. Many of these will be multi storey and high quality, as baby boomers move into their golden years. BGC’s retirement complex at St Ives, Carine, recently won the National Lifestyle Housing for Seniors Award – Retirement Villages. It represents a growing trend in the development of retirement communities with 63 luxury apartments over seven stories as well as a restaurant,
hairdressing salon, café, clubhouse, bar, library and health pavilion. Between 2000 and 2010, only 7 per cent of retirement dwellings built by the company were apartments but since then the figure has jumped to 66 per cent. “Work levels in WA have been low and patchy over the past couple of years, leading 8000 trades to leave the local industry,” Mr Richardson said. “We are still 12 months away from a strong level of activity but it will come.” When it does, the construction industry must be ready to change and evolve along with our growing state.
Perth’s infrastructure plan to boost jobs “For years, business and industry have been calling for a long-term infrastructure strategy, that’s why the immediate priority for IWA will be to develop a 20-year plan.” Mr Gelavis added that the new authority would mean better forward planning for major projects, prioritising them based on merit and best results for taxpayers and smoothing the path of construction to avoid expensive delays and cancellations. Premier Mark McGowan and Executive Director John Gelavis at the media announcement of new planning authority Infrastructure WA
The state government’s recent move to improve long term planning for major capital works promises more jobs and better facilities across WA. Last month, Executive Director John Gelavis stood alongside Premier Mark McGowan for the launch of Infrastructure WA, which will involve collaboration between the government, community and construction industry. “It will help develop a pipeline of investment, provide business certainty and create long-term, secure jobs,” Mr McGowan said. WWW.MBAWA.COM
BGC’s national award-winning retirement complex at St Ives, Carine
“Putting a tender together for large infrastructure and capital works projects like hospitals, highways, railways or bridges is costly for construction companies and consumes significant time and effort. If a project is suddenly scrapped, or deferred indefinitely, those costs are a burden on industry,” he said. “Infrastructure WA will provide the necessary certainty that the job is a priority and will go ahead, which allows the construction industry to be proactive in preparing the skills base for these projects.
Master Builders construction director Kim Richardson
WA’s growing appeal Classy new developments and direct flights from London to Perth are expected to turn Western Australia into a top tourism destination. International visitors often bypass WA to tour the east coast but a major turnaround is predicted which will see Perth become the tourist gateway of Australia. Perth was recently included in The New York Times list of the top 52 places to travel in 2019 and the newspaper said new attractions such as Yagan Square, the new array of quality hotels, the Raine Square redevelopment and Optus Stadium were excellent reasons to visit “a city long best known for its isolation on Australia’s western coast.”
“The establishment of Infrastructure WA is a confidence boost for the construction industry at a time when it is sorely needed.”
15
REPORTS
Better economic times ahead for WA There are signs of improvement in WA’s economy after some difficult years.
Master Builders Australia Chief Economist Shane Garrett
The unemployment rate peaked at 6.8 per cent in early 2018 then dipped to 5.7 per cent in October, with almost 26,000 new jobs being created over the previous year. Even more encouragingly, full-time employment increased by 41,000 over the year to October 2018, a growth rate of 4.6 per cent.
increase on the apartments/units side. Non-residential building will return to growth during 2019/2020 but start to move backwards again during 2021/22. The large reversal of engineering construction in the past five years means the sector has considerable room for growth and by 2022/23 activity should be 66.3 per cent greater than in 2022/23.
Despite the improving labour market, there is little evidence so far that new home building activity in WA is seeing the benefit. During the 2017/18 financial year, a total of 18,124 new dwellings were commenced in WA – a decline of 8.7 per cent on a year earlier. Over the three months to October 2018, new dwelling approvals fell by 8.8 per cent compared with the previous quarter – 20.2 per cent lower than a year earlier. This suggests a recovery in activity on the ground is unlikely over the short term. House prices in Perth have been falling since 2014 and declined by another 3.8 per cent over the past 12 months. Rents also continue to drop in the local market and are down by more than 20 per cent in the past four years. These two factors remove any sense of urgency from the decision to build or buy a home and activity has suffered accordingly. The challenging state of the rental market in particular has dampened investor demand, a problem which has been exacerbated by the tougher lending conditions which have accompanied the Royal Commission. Population growth in WA has slowed considerably over recent years in line with the strength of the economy. Population is a central driver of building work in sectors like education, health, retail and transport. Over the 12 months to September 2018, the volume of non-residential building in WA is estimated to have fallen by 1.9 per cent compared with the previous 12-month period. Not surprisingly, non-residential building activity peaked during the resources boom during 2011/12 and has since contracted by 27 per cent. There is still a long way to go before non-residential building returns to such heights. Some of the large projects currently under construction include the Perth Airport redevelopment, Bunbury Waterfront and Karrinyup Shopping Centre. As the graph (right) clearly shows, engineering construction has suffered the most dramatic fall back of the construction industry’s three strands. Engineering construction peaked in the 2012 calendar year and has since retreated by 63.7 per cent. This is closely related to the sharp decline in the price of iron ore, as well as that fact that a number of major resources projects in the state started and finished at around the same time. Large projects underway include the Prelude LNG, the South Flank iron ore development in the Pilbara and Metronet Stage 1. Looking ahead, it is likely that new home building will start to recover during the 2020/21 financial year, with detached house starts set to expand by 17.8 per cent between 2018/19 and 2022/23 compared with a more measured 10.5 per cent 16
MASTER BUILDER AUTUMN 2019
REPORTS
What builders want from the next Federal Government 1. The Australian Building and Construction Commission is vital to stop union bullying and reduce costs of construction We want: The ABCC retained and resourced to do its job properly. We oppose: The abolition of the ABCC. 2. A better go for small business We want: Company tax relief for small business – a rate reduction of 25 per cent. Income tax relief for sole traders. Less red tape – 10 per cent reduction of compliance time and costs by 2022. Regulatory impact statements for any new legislation and regulation to show the effect on time and compliance for small and medium businesses. We oppose: Reversal of legislated company tax cuts for small and medium businesses with annual turnover of up to $50million. 3. Meet the housing needs of all Australians We want: Retain current negative gearing arrangements. Don’t increase capital gains tax, keep the current 50 percent discount. Release of more Federal Government
‘non-useful’ land for housing development such as unused defence housing land. We oppose: Any policy that increases the tax burden. 4. Building and construction needs more skilled people in Australia We want: Targeted funding to boost the reputation of trade careers. Targeted funding for pre-apprenticeship programs. Introduction of a quality framework for all Registered Training Organisations. We oppose: Federal vocational education and training funding going only to the TAFE system. Qualification frameworks that lock out industry input and are not flexible to meet industry needs. 5. A balanced workplace relations system We want: Strong right of entry rules that are enforced. Sensible rules to encourage bargaining and where strikes are a last resort. Common sense dismissal laws with more emphasis on the right of small business people to manage their business. We oppose: Any reduction in freedom of association protections. Any move to increase the power of unions in enterprise bargaining, including the use of pattern bargaining. Restrictions on employment arrangements. 6. Safe and productive building sites We want: Stronger rules and enforcement to stop safety being exploited for non-safety purposes including to gain right of entry. Consistent safety laws across the country. Regulators that enforce current laws rather than make new ones.
We oppose: Attempts to blur the line between industrial relations and safety laws. Introduction of industrial manslaughter. Giving unions more tools to circumvent right of entry laws. 7. Sensible approach to contracting We want: Preserve the right to be an independent contractor. Great consistency between security of payment laws. We oppose: Abolition or reduction of current independent contracting laws. 8. Smarter approach on how our cities and regions work We want: Increased infrastructure spending that reflects community needs. A plan to accommodate population growth. Retention of Infrastructure Australia. We oppose: Duplication and inconsistency between tiers of government that wastes tax payers’ money. 9. Sustainable and affordable housing We want: Any reforms to have regulatory impact statements to assess the impact on the community and the industry. Energy reforms through market and whole of house mechanisms not through stringency increases. Increase in industry education on NCC changes every three years. We oppose: Moves to push for increase in energy stringency in homes before considering alternative mechanisms. Greater complexity of NCC. High costs of compliance.
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REPORTS
Strong Building Strong Economy Like it or not politics has a big impact on the economy and the environment that you do business in. This year’s Federal Election is no exception.
to the State’s ability to prosper and grow, building the homes, schools, hospitals and roads that are vital to a stronger economy.
At this election issues of vital importance will be up for debate and you will have to decide which political party’s policies best meet the needs of your business, the economy and your family’s future.
The success of our industry is fundamental to the success of our economy and improving living standards, and that’s why we are campaigning under the banner of Strong Building, Strong Economy at this Federal Election.
Increases in capital gains tax, stopping union bullies from bullying small business people on construction sites and whether there will be tax cuts for companies, small and medium businesses and sole traders – these are just some of the issues that you will be deciding on when you cast your vote. As a member you have the benefit of Master Builders Australia, or the ‘National Office’ as many refer to us, standing up for your interests with federal politicians – Liberal, Labor, minor parties and independents. Election years always see our activity ramp up and we are working closely with your team at Master Builders SA to make our politicians hear your concerns loud and clear so that the issues that matter to you and your business are front and centre of the national conversation. To help us succeed we need to understand our industry’s story a lot better and tell it a lot more often in our own communities. Our industry is the second largest in Australia; it’s also the second largest employer and provider of full time jobs. Locally the industry is vital
After significant consultation with Master Builders Associations across the country, we are now more ‘campaign ready’ than ever thanks to the establishment of National Campaign Fund. We now have the resources to ensure that Master Builders is front and centre in the most important debates, serving as the most effective national voice for members and the industry. It strengthens our capacity to fight publicly and in the corridors of power, not at federal elections but whenever member’s interests are in jeopardy. Consultation with Master Builders Associations around Australia has identified the following key themes that our members want us to campaign on: • Retention of the ABCC is vital to stop the bullying on construction sites • A better go for small business • Housing construction to meet demand needs to be stimulated not curtailed • The building and construction industry needs more skilled people to build Australia
As the foundation of Strong Building, Strong Economy these pillars are the umbrella for a comprehensive policy agenda including tax, safety, broader industrial relations issues, building regulation, procurement, infrastructure and population policy – just to name a few. Importantly, Strong Building, Strong Economy builds on a year of robust advocacy by Master Builders nationally and in Westerm Australia. We know that direct, evidence based campaigning increases the respect of governments of all flavours for Master Builders.
Denita Wawn, CEO, Master Builders Australia
MASTER BUILDERS AUSTRALIA WANTS THE NEXT FEDERAL GOVERNMENT TO:
STOP THE BULLYING so KEEP THE abcc
WWW.STRONGBUILDING.COM.AU MBA Strong Building QTR H AD1.indd 1 WWW.MBAWA.COM
DON’T limit NEGATIVE GEARING & don’t increase CAPITAL GAINS TAX
Authorised by Denita Wawn, Master Builders Australia, FORREST, act, 2019
18/2/19 2:39 pm19
REPORTS
New national business awards Building excellence has always been honoured by Master Builders but a new award program has turned the focus on business excellence.
Our members contribute to local economies and provide jobs across Australia. They deserve to be celebrated for their commitment to business improvement and growth.
Success in our industry doesn’t just depend on quality building work. High levels of business acumen are also important.
The new awards will be judged on financial management, operations management, customer service, business improvement initiatives and corporate social responsibility.
The inaugural National Business Leadership Awards will be held in Melbourne in August to recognise smart management practices which make firms successful in the long term.
We are committed to promoting best practice because it underpins the capacity of our members to continue to build stronger, more liveable and connected communities.
The awards are open to Master Builders members in a range of commercial, residential and civil categories: National Business Leadership Award for a Small Commercial Construction Company (Annual turnover under $20million)
National Business Leadership Award for Small Residential Building Company (Annual turnover under $5million)
National Business Leadership Award for Small Civil Construction Company (Annual turnover under $20million)
National Business Leadership Award for a Medium Construction Company (Annual turnover between $20million - $50million)
National Business Leadership Award for Medium Residential Building Company (Annual turnover between $5million -$20million)
National Business Leadership Award for Medium Civil Construction Company (Annual turnover between $20million -$50million)
National Business Leadership Award for a Large Commercial Construction Company (Annual turnover over $50million)
National Business Leadership Award for Large Residential Building Company (Annual turnover over $20million)
National Business Leadership Award for Large Civil Construction Company (Annual turnover more than $50million)
To enter, visit masterbuilders.com.au/events
20
MASTER BUILDER AUTUMN 2019
REPORTS: BRANCHES
Mid West honours Member achievements were celebrated at a recent sundowner in Geraldton. Bailey Pratt from Connolly Creative Building won the much-prized 2017 Kevin Giudice Apprentice of the year award in the Mid West. Bailey, who was unable to attend the statewide apprentice awards, was also presented with his finalist certificate for Most Outstanding Regional Apprentice. The two achievements are proof of his quality of work, attitude and dedication. Andrea Parkes and Matt Gething from Redink Homes were given their 10-year membership certificate and Michael and Daniel Hebiton from Carimor Sheds received their five-year membership certificate.
Plane amazing Some people collect art, others are fascinated by cars or stamps or coins but John Crawley’s collection is unlike any other – he collects woodwork planes. The retired Esperance builder gave an insight into his collection when he was presented with a 20 year membership certificate recently. He has been a member for many more years but not consecutively. Mr Crawley has amassed hundreds of planes, some more than 300 years old and imported from England. As might be expected of a builder, he has an interest in tools which extends beyond planes. He has gathered all kinds of devices and the purpose of some of them is known only to him.
John Crawley with his membership certificate and intriguing collection of wood planes
Party in Albany The Great Southern end of year function had a good turnout and membership certificates for five, 10, 15, 20 and 25 years were presented. Mark Weldon and Bert Meuzelaar provided a dash of international appeal with their arm-wrestling antics, claiming it as a Dutch Christmas tradition. Members enjoyed a spit roast and tasty desserts at the event, which was sponsored by Laminex.
Great Southern revellers
One of the smallest planes among the multitude
Denmark forum A building forum will be held in Denmark on March 27 covering industry issues such as contracts, insurance, legal matters, safety, tendering, finance and mental health.
Southern Development Commission procurement officer Gavin Ellis. Master Builders representatives will also talk about ways to improve businesses and the value of membership.
The event will be held at Thornton’s Hardware and new manager Rob Perisic will be one of the speakers, along with Worksafe inspector Tony Steele, and Great
A sausage sizzle and drinks will be served, courtesy of Laminex. The event is free, call 9841 6232 to attend.
Arm wrestlers Mark and Bert amuse the members
WWW.MBAWA.COM
21
Michael Van Dongen, Director, ENCON
What prompted you to purchase your Toyota using the Gold Fleet Discount? It was time to trade in our business vehicles so we were in the market for the best deal when we went to purchase new ones. Being an MBA member I thought of the Toyota Gold Fleet Discount and decided to talk to Toyota via AHG. How much did you save? Was it a big saving? Yes, around $4,500. Making that kind of saving is a great member benefit and it more than pays for our MBA membership fees. In your opinion does this help your business? Absolutely, we are a small business so every saving we can make helps. That we can access great vehicles for a great price is always going to be valuable from a business perspective. Is this a valuable feature of being a Master Builders member? I couldn’t get this kind of discount if I wasn’t an MBA member.
Master Builders WA Gold Fleet Discount How it works
1
Member of Master Builders WA approaches local Toyota Dealership.
2
Member provides contact details of Toyota Sales rep to Master Builders WA. Master Builders WA will provide email confirmation of membership to Sales rep.
3
Dealer will then apply the Gold Fleet Discount to the quote/sale of vehicle.
4
Purchase of vehicle completed.
It’s a big discount and it’s a free member benefit which means my MBA membership more than pays for itself. I came out in front which is a win. It’s great to be able to use industry buying power through the MBA. It adds a lot extra value to our membership and the Gold Fleet discount is available on the whole Toyota range. Would you recommend the Gold Fleet discount to other MBA members? Absolutely. It’s a no-brainer. Not only is the discount substantial it’s also user-friendly. Alan at Grand Toyota here in Perth was very helpful and so were AHG. 22
(The Gold Fleet Discount is a $ value discount that varies from vehicle to vehicle).
MASTER BUILDER AUTUMN 2019
AWARDS Our Master Builders logo on the huge screen at Optus Stadium inspired a spate of selfies on social media
A celebration of diverse success Sunset at the end of a beautiful summer day was the ideal time for Master Builders to celebrate the end of a successful year and the achievements of members.
Danny Rummukainen from Georgiou won this year’s Andy Peppercorn Safety Award, along with a $1000 prize, sponsored by the Mark Allen Memorial Trust.
More than 200 members gathered at Optus Stadium, Australia’s top construction project of the year, in December to enjoy views from the Sky Lounge over the Swan River, Perth City and Matagarup Bridge.
And congratulations to Peter Willoughby from Willoughby Constructions on being awarded the title of Regional Member of the Year. Peter is the outgoing chairman of our Geraldton branch, where he has been a member since 1979.
As guests socialised and shucked oysters, awards were presented for various efforts throughout the year. Encon Director Michael Van Dongen won the title of Master Builders Member of the Year. His efforts as a Board and construction council member as well as work on a judging panel and several committees make him a deserving choice. Dan Perkins, Managing Director of Perkins Builders, was awarded Master Builders life membership. Dan has chaired the South West branch for seven years, been a Board member of Master Builders since 1998, was the second youngest - and first regional - President in WA and then National President for two years. WWW.MBAWA.COM
Peter is not only the longest running member of the branch but has been elected Chairman on four separate occasions, spanning two years each time, which is unprecedented in Master Builders’ 120year history. “I am humbled to be acknowledged with this award as I really enjoy just helping out without making a fuss. As a membership-based organization, I would encourage more builders, subcontractors and suppliers to get involved since it is very rewarding,” he said. Also recognised at the event were membership milestones from five years to 50 years.
Board member Dan Perkins accepts life membership of Master Builders
23
AWARDS 50 YEARS Moore Constructions Perkins Builders 40 YEARS Lime Industries Pty Ltd
Executive Director John Gelavis and Board member Dan Perkins present Peter Willoughby with his Regional Member of the Year award
30 YEARS Geraldton Homes LM Whitney Drafting & Design 25 YEARS Metroll Albany Neville Hardware & Building Supplies Modern Home Improvers Karamfiles Builders
Oysters were a popular choice among the food and drink offered to members
The Sky View Lounge at Optus Stadium overlooking the city and Swan River was the perfect venue for the sundowner
Member milestones of 10, 15 and 20 years were celebrated
20 YEARS apg Homes Aubade Constructions Barclays Building Services Central Avenue Homes Dale Alcock Homes South West Pty Ltd Grandsen Construction Home Group WA Lavan Legal Levista Homes John Patrick Crawley Kimberley Green Constructions MH & JL Higgins Pilbara Constructions Stylewoods Commercial Interiors W Gibbs & Son Westralia Homes Wishart Homes Pty Ltd 15 YEARS Anderson Dufty Builder BGC Residential Distinction Homes Kensington Design Australia Kwa Building Inspection & Consulting M & B Sales Scope Interiors (1997) Studio 8 Builders & Designers Nick Goode Construction 10 YEARS APP Corporation ATF Height Safety Perth Attix Pty Ltd Australian Brick & Blocklaying Training Foundation Avalon Homes (WA) Averna Homes Bay Scaffold Bernie's Carpets Pty Ltd
BMT Corporations Broadway Homes Castleprime Construction De Francesch Building Company Diggers and Truckers EcoVision Homes Finch Contractors Georgiou Building Granny Flats WA Green-Shore Builders Hilburn Constructions Homes By Dalessio Kalgoorlie Boulder Building Contractors Lanskey Constructions Nulook Homes Ranger Construction Services Redink Homes Midwest Pty Ltd Richard Machell Santis Construction Company Trac Building Services Vella Homes Vestra Personal Builders West Australian Mechanical Services 5 YEARS ADCO Constructions Pty Ltd Anderson Sheds Andy Pollard Homes Associated Shopfitters Pty Ltd Built Pty Ltd Bunnings Broome Capella Constructions Pty Ltd Carimor Sheds Crumps Canvas Dunkeld Construction Encore Legal Pty Ltd Expand Constructions Gerry and Kim D Harp Honter Building & Construction IP & ST Elson Pty Ltd Kullarri Building Pty Ltd Morgan Mechanical Services One Design and Construct Pty Ltd Outdoor World Bunbury Perth Extensions Pty Ltd Q Design and Construct Pty Ltd Ray White Broome Rivett Construction Services Rod Court Carpentry Sanpro Construction Shelford Constructions Pty Ltd Sidi Construction Pty Ltd Solar Dwellings Swan River Constructions Vecchio Homes Pty Ltd West Coast Residential Western Building Pty Ltd
Networking and socialising at the sundowner
24
MASTER BUILDER AUTUMN 2019
AWARDS
FIT FOR A KING
Looking across the side of the house to the ocean
A building where boulders merge into stone walls suggests a medieval castle rather than a country house but the WA Top Home of the year combines the best of both. The oceanfront residence in Yallingup which recently won the major prize in the 2019 Master Builders-Bankwest Housing Excellence Awards has a formidable exterior which echoes the hilltop strongholds of Europe. This impression is reinforced by a heavy, studded double front door leading to interior features including huge wooden exposed beams and a tightly wound tower staircase. And it is a fortress of sorts, built to endure in a coastal environment. Master Builders senior judge Robert Shaw said the work by winning builder Paradigm Construction was made to last. “The complexity of the stonework and renders and changing textures from one surface to another is great to see. The attention to detail with the different finishes has shown unbelievable craftsmanship,” he said. Master Builders Executive Director John Gelavis said the winning home was a superb example of the work done by WA builders and the prestigious awards event allowed the industry to put its high standards of workmanship on show. The home, designed by celebrated architect Javier Barba - BC Architectos in Barcelona has been cleverly angled to cascade down the existing sand dune, giving it protection from prevailing winds. But, as Mr Shaw says, Master Builders awards are not judged on design but on quality and skill. The excellence of these was shown when the project not only won the titles of Bankwest Top WA Home and WWW.MBAWA.COM
Best Country Home but also a collection of trade awards for plastering, ceilings, plasterboard linings, brick and block paving and external finishes. “Paradigm Construction are well deserving of being the state winner. The team should be very proud to deliver this sort of project on a regional and a remote site where the logistics can be difficult. They have delivered a level of workmanship which is fantastic,” he said. Other major winners at the gala awards event on February 23 at Crown Perth included Domination Homes, which received Best Display Home for The Residence, Applecross, and Rossbrook Construction for a its renovation and extension of a heritage listed home in Highgate.
Comfortable and spacious living area with open fireplace
The Residence, by Domination Homes, is a modern two-storey, four-bedroom, two-bathroom home which has multiple living areas including a theatre room, open-plan living, dining and kitchen area with wine cellar and upstairs sitting room. Outdoor and internal living come together seamlessly via frameless glass bi-fold doors to create a top-class entertaining area. The display home was also judged best of its over $800,000 category.
The heritage listed Highgate home renewed and extended by Rossbrook Construction
Best alterations & additions was presented to Rossbrook Construction for the carefully planned and meticulously executed renovation of a 120-year-old home which included a clever solar passive design. Recycled jarrah timber floors and original bricks in the additions gave the house a wow factor and a stunning back area which is a source of pride. The work also won the $400,000-$500,000 alteration category. The WA winners will compete against the best of other states and territories at the Master Builders national awards at Uluru on 23 November.
The Residence display home by Domination Homes
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AWARDS 201 9 MA S TE R B U I LDE RS BA N KWE S T HOUS I NG EXCE LLE NCE AWARDS
BANKWEST TOP WA HOME Paradigm Construction (WA) Injidup Springs Road, Yallingup
BEST COUNTRY HOME Paradigm Construction (WA) Injidup Springs Road, Yallingup
BEST DISPLAY HOME Domination Homes The Residence, Applecross
BEST ALTERATIONS & ADDITIONS Rossbrook Construction, Highgate
BEST CONTRACT HOMES UNDER $200,000 Now Living, Wellard Table setting for the awards
$200,000-$250,000 New Choice Homes, Landsdale $250,000-$300,000 Ryza Homes, Erskine $300,000-$350,000 New Choice Homes, Carine $350,000-$400,000 Summit Homes, Dudley Park $400,000-$450,000 Genesis Homes Master Builders, Rockingham
The Crown grand ballroom stands ready for the gala awards presentations
$450,000-$550,000 Express Living Homes, Scarborough $550,000-$650,000 Tony Tomizzi Builders, Dianella $650,000-$750,000 Refined Edge, Mosman Park $750,000-$1MILLION Refined Edge, Woodlands $1MILLION-$1.5MILLION Refined Edge, Wembley Downs $1.5MILLION-$2.5MILLION Azure Luxury Homes, Swanbourne
Party time after the presentations
$2.5MILLION-$3.5MILLION Brian Burke Homes, Applecross OVER $3.5MILLION Mosman Bay Luxury Homes, Mosman Park
BEST DISPLAY HOMES UNDER $200,000 Homebuyers Centre Merlot, Bennett Springs $200,000-$220,000 Celebration Homes The Carlisle, Mindarie
Chinese dancers and musicians give an oriental flair to the event
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$220,000-$240,000 New Generation Homes The Sonoma, Bennett Springs
$240,000-$270,000 New Choice Homes The Portland, Lakelands $270,000 - $300,000 New Choice Homes The Madora, Piara Waters $300,000 - $350,000 Dale Alcock Homes The Gilmore I, Lakelands $350,000 - $400,000 Blueprint Homes The Lexington, Treeby $400,000-$500,000 Ross North Homes The Odyssey, Melville $500,000-$600,000 Broadway Homes The McQueen, Dianella $600,000-$800,000 Webb & Brown-Neaves The Moda, Dianella OVER $800,000 Domination Homes The Residence, Applecross
BEST ALTERATIONS & ADDITIONS UNDER $150,000 Evolution Custom Builds + Extensions + Renovations, Coogee $150,000-$200,000 Nulook Homes, North Fremantle $200,000-$250,000 Summit Home Improvements, West Leederville $250,000-$300,000 Green-Shore Builders, Kensington $300,000-$400,000 Bistel Construction, Wembley $400,000-$500,000 Rossbrook Construction, Highgate $500,000-$750,000 Green-Shore Builders, Mount Lawley $750,000-$1MILLION Amerex Renovations and Additions, Nedlands OVER $1MILLION Cassari Group, Highgate
BEST MULTI UNIT DEVELOPMENT TWO TO FIVE UNITS Refined Edge, Como FIVE TO 10 UNITS Vision One Homes, Hamilton Hill 10 TO 20 UNITS Now Living, Seville Grove MASTER BUILDER AUTUMN 2019
AWARDS
Housing Minister Peter Tinley, Bankwest’s Donna Dalby, Paradigm director Armand Lizee and Master Builders director John Gelavis celebrate the Top WA Home award
The Rossbrook team on stage with Housing Minister Peter Tinley, left, and John Gelavis, right, to accept their award for best alterations and additions
The winning group from Domination Homes on stage with their award for best display home
BEST ANCILLARY DWELLING
EXCELLENCE IN ENERGY EFFICIENCY
EXCELLENCE IN ROOFING
Genesis Homes Master Builders, Swan View
Nulook Homes and Solar Dwellings Winthrop
Trade: Carter Roofing Builder: Cassari Group
BANKWEST BEST CUSTOMER SERVICE SMALL BUILDER AMG Home Builders and Nulook Homes PROJECT/VOLUME BUILDER Aussie Living Homes SUPPLIER Ford & Doonan Air Conditioning Systems
SMALL BUILDER OF THE YEAR Refined Edge
LYN BENNETT MEMORIAL PROJECT BUILDER OF THE YEAR Ventura Homes
INNOVATIVE CONSTRUCTION FOR SMALL LOTS Terrace by Perceptions, Ellenbrook
BEST ALTERNATIVE CONSTRUCTION HOME Arklen Developments, Claremont
SUPERVISOR OF THE YEAR
EXCELLENCE IN CONCRETING Trade: Grafform Builder: Mosman Bay Luxury Homes
EXCELLENCE IN CABINET MAKING
EXCELLENCE IN CARPENTRY Trade: By Inside Out & Russell Wilson Builder: Refined Edge
EXCELLENCE IN PAINTING
Trade: Angelo Petkovic Cabinets Builder: Refined Edge
Trade: Alan Ramsay (external) & GM Atulov & LT Quinn (internal) Builder: Refined Edge
EXCELLENCE IN EXTERNAL FINISHES
SILVER TROWEL AWARD
Trade: Apexstone Construction Builder: Paradigm Construction (WA)
Trade: Steve Diblasi Builder: Refined Edge
EXCELLENCE IN BRICK & BLOCK PAVING
EXCELLENCE IN PLASTERING
Trade: Artisan Brick Paving Builder: Paradigm Construction (WA)
Trade: Facelift Plastering Builder: Paradigm Construction (WA)
EXCELLENCE IN CEILINGS
EXCELLENCE IN FLOOR & WALL TILING
Trade: Geographe Ceilings Builder: Paradigm Construction (WA)
Trade: Tuscany Tiling Co Builder: Giorgi
EXCELLENCE IN PLASTERBOARD LININGS Trade: Geographe Ceilings Builder: Paradigm Construction (WA)
SMALL BUILDER Ryan Winston PROJECT/VOLUME BUILDER Steven Domazetovski, Perceptions
BEST NEW BUILDER Rossbrook Construction
TRADESPERSON OF THE YEAR Trade: Carter Roofing Builder: Cassari Group Entry: Highgate
EXCELLENCE IN RECYCLING Homebuyers Centre
BEST WATERWISE HOME Nulook Homes and Solar Dwellings Winthrop
EXCELLENCE IN ENERGY EFFICIENCY Inspired Homes Darch WWW.MBAWA.COM
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HEALTH
Mates help bring down the death risk Suicide ends more Australian lives than skin cancer or the road toll and construction workers have a greater risk than the general population. Last year the suicide rate increased, with 3,128 people losing their lives. By contrast, there were 1,522 deaths in vehicle accidents and 2,087 from skin cancer. But Mates in Construction is working to save lives and our industry’s award-winning suicide prevention and mental health support program reached more people in 2018 than in any previous year. Last year, 3,433 workers and their families had access to the program. A total of 3,200 workers attended Mates training, which breaks down the stigma associated with suicide and increases the likelihood that workers will offer help to each other and seek support. Mates case managers helped 233 people, many in critical need of professional support. Most of them connected with their support via the 24-hour helpline on 1300 642 111. It was a busy year, but thoroughly worthwhile because having the Mates program available in workplaces can help prevent construction workers losing their lives to suicide and suffering the life-altering impacts of attempted suicide. It saves families from the devastating impact of losing a loved one to suicide.
Mates training courses teach workers to ask for and offer help without fear of stigma
The program is offered in the construction industry completely free of charge. Call 9463 6664 for more information. And save the date of 3 May for the annual Mates charity lunch to boost awareness about construction worker suicide and raise much-needed funds for the program. The event will be publicised across the industry so look out for alerts and pick up a ticket, when they are available.
Is work giving us cancer? We all know some of our lifestyle activities like smoking and drinking alcohol can cause cancer but fewer realise some jobs are carcinogenic. The International Agency for Research on Cancer has classified 47 substances and mixtures and 12 occupations, industries or processes as Group 1 carcinogens, which means there is enough evidence to say they can cause cancer. A jackhammer can raise dust which is dangerous to breathe in
Workplace cancers are largely preventable, yet approximately 3.6 million Australians are exposed to at least one carcinogen in their workplace and 5000 work-related cancers are diagnosed each year. Some jobs involve higher risks of cancer because of exposure to dusts, gases, chemicals, radioactive substances or other aspects of the work. Here are some of the most common occupational carcinogens in Australia. Asbestos: Construction materials, insulation products, gaskets, friction brake products and vehicle or plant equipment that was installed, built, manufactured, commissioned or designed prior to 1 January 2004 are likely to contain asbestos. Look up the Cancer Council’s kNOw asbestos online course for help in learning to recognise and deal with asbestos.
Solar ultraviolet radiation: Temperature is not related to solar UV strength. We can’t feel it so our skin can be damaged without us knowing. Use sun protection when working outdoors if the UV index is three or above, which can be checked at myuv. com.au or by downloading the free SunSmart app. MDF board: MDF board is a timber product made from hardwood and softwood fibres that are glued together with wax and a resin adhesive containing ureaformaldehyde. Both wood dust and formaldehyde are Group 1 carcinogens. When working with wood products, dust and free formaldehyde are released. Formaldehyde is absorbed by the dust particles which may cause cancer when breathed in or on contact with the skin, frequently, over time.
Diesel engine exhaust: An estimated 1.2 million workers in Australia are exposed to diesel engine exhaust. Walls covered in soot, a blue, black or smoky haze in the workplace or complaints of sore eyes, an irritated throat or nausea are all signs of it.
Employers should be aware of the risks in their industry and either find different ways to tackle the task or ensure the risk is removed or reduced. Workers must also take reasonable care of their own health and safety and follow instructions and work health and safety policies.
Silica dust: Silica dust is 100 times smaller than a grain of sand, so we can breathe it in without knowing. Breathing in silica dust daily can easily mean exceeding the Australian exposure limit of 0.1mg/m3.
Anyone with concerns should start by contacting the workplace supervisor or management. Other sources of help include the health and safety representative and the Department of Mines, Industry Regulation and Safety.
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MASTER BUILDER AUTUMN 2019
TRAINING
Training for the economic rise
Diploma students demonstrate practical skills
Construction apprenticeships have fallen in the past two years as WA has struggled through an economic slump but those who have been training in the downturn are well placed to launch their careers as the outlook brightens. A report released by the National Centre for Vocational Education Research in December showed 91 per cent of people completing trade certificates last year had secured employment. This is a very positive sign, ensuring the industry will have skilled tradespeople to service future demands. As Australia’s second largest industry and third largest employer, the building and construction industry plays a crucial role in the economy. A scaffolding appreciation course
The industry generates $200billion in revenue and supports $80billion in activity throughout the building supply chain – including 360,000 ‘mum and dad’ small building businesses and sub-contractors. To meet projected demand across the country, an additional 300,000 employees, apprentices and independent contractors are needed over the next decade and 50,000 new entrants each year to offset the increasing number of workers entering retirement. Master Builders WA believes it is imperative to prioritise training of new entrants to the industry and upskilling of the existing workforce to service the future demands of the building and construction sector We take great pride in offering training courses that meet the needs of employers, employees, contractors, supervisors and managers in the building and construction industry. We cover the complete spectrum from the entry point in the industry through the entire learning journey including safety, technical, legal, technological and business skills. We offer White Card training, the Safety and Health Representative Course, Contract Management, High WWW.MBAWA.COM
Risk Work Licences training and Diploma of Building and Construction (Building) to anyone looking to progress towards becoming a registered builder, construction manager, site supervisor or building inspector. In 2018, Master Builders WA successfully delivered a series of face to face White Card courses for school students who had plans for work experience and try-atrade. We aim to continue to create awareness about our industry to young people. The Construction Training Fund (CTF) plays an important role in ensuring our industry has skilled workers. The fund collects a CTF Levy from all construction projects in WA and this revenue is invested back into the industry through training grants and subsidies. Many Master Builders training courses incorporate the levy for eligible participants, which is helpful in reducing the cost. We proudly offer training across the state through our regional offices in Albany, Geraldton and Bunbury. We also have a presence in Esperance and Kalgoorlie ensuring our members throughout WA have access to the services they need.
Taking training courses into schools
Safety instruction
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LEGAL
What to expect with security of payment reform
Shevaun Stringer
Tom Jacobs
The State Government recently released John Fiocco’s report on Security of Payment Reform in the WA Building and Construction Industry which makes 44 recommendations for change. The report was commissioned in response to the number of insolvencies that has plagued the construction industry in recent years and seeks to address concerns with suppliers, contractors and subcontractors not being paid on time or at all for their work. The WA Government has indicated that it will introduce legislative reforms in the first half of 2019. It is unclear which of the recommendations it will take on board. A number of the recommendations may be viewed by some operators within the industry as a significant imposition on freedom of contract. Until further information is available, it is important for businesses in the construction industry to understand what the key recommendations are and the impact they may have. Our top 10 takeaways from the Fiocco report are: 1. A move to the East Coast model of adjudication The Fiocco report recommends moving from the current adjudication process in the Construction Contracts Act 2004 (WA), known as the West Coast model to more closely reflect the legislation on the other side of Australia, the East Coast model. This means there would be a separate statutory right to a progress payment that operates alongside of and overrides any inconsistent contractual regime. The suggested changes also include: • An application for adjudication can only be brought by a party down the contracting chain and would need to be commenced within 15 business days of a payment dispute arising. • A respondent must then provide an adjudication response within the later of five business days of receiving the claimant’s application or two business days after receiving the adjudicator’s acceptance of the application. • The respondent can only include reasons for withholding payment that were included in the payment schedule. • If the respondent fails to serve a payment schedule and fails to pay the claimed amount in time, the claimant may apply for adjudication, or recover the unpaid amount as a debt through the courts. 30
2. Changing the exclusions to the adjudication process The Fiocco report recommends that WA retains but further narrows the mining exclusion by adopting similar wording to the NSW Act. The NSW Act states that ‘construction work’ does not include: • The drilling for, or extraction of, oil or natural gas • The extraction (whether by underground or surface working) of minerals, including tunnelling or boring, or constructing underground works, for that purpose. It also recommends introducing an exclusion for parts of the residential sector, which have access to dispute resolution processes with the Building Commission. It recommends excluding the application of the Act (including the adjudication process) to a construction contract that is for home building work contracts, being residential works between $0 - $500,000. 3. Prohibiting unreasonable time bars The Fiocco report recommends that the Act includes a prohibition on unreasonable time bar clauses. Therefore, claims for payment or extensions of time that are conditional on giving notice will not be enforceable if the giving of the notice is not reasonably possible, unreasonably onerous or non-compliance would result in prejudice to the other party. 4. Reducing payment timeframes for construction contracts Currently in WA, a party to a construction contract must be paid within 42 days after payment is claimed. The Fiocco report recommends that the maximum timeframe for making payment is reduced to 20 to 25 business days, or 10 business days if there is no term in the contract. 5. Incorporating express terms into a construction contract regarding the provision of security Under a construction contract, the contractor usually has to give some form of security in case they cannot fulfil their obligations. The Fiocco report recommends express terms are incorporated into all construction contracts that require security to be provided, overriding any clause to the contrary, including that: • Any party has the right to substitute the form of security provided under a contract, at any point during the contract term, provided it substitutes security of an equal value. • Any security withheld under the contract is to be returned no later than 12 months after practical completion. This term is to override any term in the contract to the contrary, but does not affect a party’s other rights (e.g. security withheld on rectification works, or the length of the DLP). • A party should have to give 10 business days’ notice to have recourse to security. MASTER BUILDER AUTUMN 2019
LEGAL 6. Requiring retention monies to be held on trust The Fiocco report recommends establishing a retention trust scheme such that any party that holds retention money pursuant to the terms of a construction contract (including principals) is deemed to hold the money on trust, irrespective of the contractual value. 7. Introducing a statutory trust scheme for projects over $1million The report also recommends introducing a deemed trust scheme such that whenever a party receives payment under a construction contract, on account of work performed by another party, the payment is deemed to be held in trust, for the benefit of the party who performed the work. It recommends this scheme applies in respect of all construction contracts valued over $1million (unless one party to the contract is only supplying goods or is a State or Local Government agency) although further recommends a phasing in of the arrangements, starting with its application on projects with a value of over $20million, and extending the operation over time. After five years this would be reviewed to determine whether the $1million threshold should be removed entirely. In the meantime, until a deemed trust scheme is introduced in WA, the government should continue to use project bank accounts on the types of public works projects it considers most suitable. 8. Right to review an adjudication determination should remain ‘as is’ In WA there is a limited right of review to the State Administrative Tribunal where an adjudication application has been dismissed by an adjudicator. The Fiocco report recommends maintaining the current system and rejects the recommendations in
the Murray Report, which include adjudication reviews by senior adjudicators in certain circumstances. 9. Additional disciplinary action able to be taken against contractors or subcontractors The Fiocco report recommends extending the circumstances in which the Building Commission can take disciplinary action against building service providers to situations where a provider does not pay a judgment debt, adjudication or arbitration determination. It also proposes a demerit point system for ongoing poor payment practices or contractual deficiencies. Potential penalties could include fines, suspensions or cancellation of a building service provider’s building registration. 10. Terms for government contracts While the Fiocco report recommends against a mandated standard form contract for government contracts, it considers the government should develop a consistent set of amendments to standard forms and encourage back-to-back subcontracts in its contracting chain. FURTHER INFORMATION: Some or all of these recommendations may become law in 2019. If you’d like to know more about how they may impact your business, get in touch. Jackson McDonald’s Get Paid Quick (GPQ) app assists construction companies with cash flow problems. It’s an easy and cost effective online adjudication application tool to help you resolve your payment disputes faster! Find out more at www.getpaidquick.com.au
New finance partnership Launch-ed Master Builders is launching a new financial service for members and the very appropriately named firm of Launch Finance is joining us.
Launch Finance Director Duncan McKinnon can offer services and advice to all levels of the building and construction industry
Master Builders Executive Director John Gelavis said the new offer was put together in response to member calls for a service tailored to the industry.
“Our member surveys identified the need for a financial service which caters for the building and construction industry,” he said. “Based on this input, Master Builders have set up a strategic alliance with Launch Finance to deliver financial products to meet commercial, residential, civil and development requirements.” Launch Finance is a trusted firm in WA, with an awardwinning team of professional finance brokers available to provide the most suitable finance options from a wide network of lenders. WWW.MBAWA.COM
FINANCIAL
They aim to help members navigate the ever-changing and competitive loan market and find the right loan to suit building and construction projects of all sizes. They can also assist clients to get finance, whether they are a first homebuyer, business owner, investor or looking at refinancing an existing loan. Launch Finance has access to hundreds of loan products and is committed to continued professional development to stay at the forefront of market trends, new products and strategies. FURTHER INFORMATION: Launch Finance Director Duncan McKinnon can be contacted on 9476 9800, the usual Master Builders line. The firm also has branches in Como and Mandurah, where the team can help.
The team at Launch Finance are ready to help
Launch Finance Pty Ltd is an Australian Credit Licensee (Australian Credit License Number 495354)
Launch Finance Director Duncan McKinnon and Finance Manager Joe Del Borrello seal the new agreement with Master Builders Executive Director John Gelavis and President Jason Kunkler.
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INSURANCE There are many hazards on a construction site and accidents can happen to the most careful workers
Public liability cover is essential
Jeff Concanen, State Manager MBA Insurance Services WA.
It doesn’t matter if you own a large business which employs hundreds of people or you’re a sole trader. It doesn’t matter if you have direct public exposure such as building a store on a busy street where there’s a high risk of someone getting injured or you’re laying bathroom tiles on your own. Every construction business needs public liability insurance.
Large businesses know the value of public liability insurance. They know the protection it provides and understand that accidents which result in someone getting injured or having their property damaged can happen despite the best intentions, best plans and best levels of care. Public liability insurance is just as critical for small businesses, sub-contractors and sole traders, if not more. Courts are awarding ever-increasing financial damages to people who suffer injuries. Our society is becoming more litigious and demands for compensation run into the millions. Can your business survive a multi-million-dollar lawsuit? Defence costs alone can run into the thousands, making it hard to maintain living standards, pay the mortgage and support a family. Here are some of the common explanations people give for not having public liability insurance – and the reasons why they need it: “I do good work, I don’t need public liability insurance.” That’s fantastic, that will ensure the contractor or principal will engage you on other projects. But here’s the definition of accident: An unfortunate incident that happens unexpectedly and unintentionally, typically resulting in damage or injury. (Source: Oxford online dictionary). 32
Think you can’t be held liable for an accident? Think again. Maybe someone trips on your worksite, maybe a piece of tin is picked up by a gust of wind and smashes a neighbouring window or maybe something falls off the roof – these are all accidents but all preventable, meaning you could be legally liable if you work on that site. There are many potential hazards on building sites which “good work” will not prevent. And accidents can happen to anyone - a passer-by, someone working alongside you, a delivery driver or an architect. “I’m a sub-contractor, the contractor’s insurance covers me.” Does it? The contractor’s policy protects the contractor for damage or injury you may cause. On face value the contractor’s public liability policy may seem great and may include contractors, sub-contractors or principals as insured parties but it means the contractor is protected for damage or injury occurring on his site, even if you as the sub-contractor is legally liable. However, that doesn’t necessarily stop the contractor pursuing you for the cost of the damage. Is there a waiver of subrogation clause in the policy that will stop the contractor’s insurer from recovering costs from you? “It’s too expensive, I can’t afford it” Think about what you are getting for your money. If you own a house you probably have home and contents insurance, you most likely have car insurance and you may even insure the tools you need to do your work. Public liability insurance protects your livelihood, your way of living, your business. When you receive a summons because someone has been seriously injured or lost property, public liability insurance will be the best investment your business has ever made.
FURTHER INFORMATION: To further discuss your risk management processes or to check to see if your contract works and liability policy provides the right level of cover, contact MBA Insurance Services on 9476 9898. MASTER BUILDER AUTUMN 2019
RESIDENTIAL Condensation leads to problems in homes
Fresh air thinking to resolve a mouldy old problem Complaints about condensation and mould are common from home owners and the blame often falls on builders. Mould and dampness are serious matters. They can cause health problems as well as unpleasant smells and damage to homes so any issues should be investigated immediately, with the moisture source eliminated as soon as possible. The primary cause of mould growth is excess moisture, which could be coming from either within or outside the dwelling. The problem can often be avoided if home owners had a better understanding of ventilation to avoid the buildup of damp. There are several reasons for water penetration. Ingress from outside the building This can include surface water entering the building, rain leaking in through the roof or walls through to rising damp. Ingress from wall cavities due to insufficient weep holes In residences with cavity masonry walls, weep holes are sometimes installed just above the slab on each level as well as above openings greater than 1.2metres such as doors and windows. If there are no weep holes or weep holes are blocked (by planter boxes, for instance) water can’t egress and may pass through to the internal wall surfaces. Ingress from areas located above the impacted area Within multi storey buildings, water ingress can sometimes be from an upper floor where failed waterproofing from wet areas has occurred. Another area that can cause ingress is a disrupted waterproofing membrane on a balcony above the area. Failed waterproofing Plumbing leaks can be a contributing factor but failure of water proofing membranes in pre-fabricated shower WWW.MBAWA.COM
Damp bathrooms create the perfect environment for mould
units, often not immediately noticeable, can result in water ingress through masonry walls. Condensation and inadequate ventilation This is perhaps the most common cause of problems with mould. It is also the one area where good household practises and an understanding of moisture build up and its effects can significantly limit the potential for mould to occur. Tumble dryers, a staple in most households, have the potential for heavy moisture build up if not correctly ventilated. The same goes for hot showers, where the steam can exit the bathroom. The key is adequate ventilation. Moist air needs to be replaced with external air of a similar temperature to stop condensation forming on internal surfaces. Venting a room can be through opening doors or windows to the external air or via a mechanical vent such as an exhaust fan. Windows and exhaust fans are often under used for this purpose. It sounds ridiculously simple but for ventilation to be provided by a window or door, it must be opened. Unfortunately, weather, security and privacy may all be reasons why they stay shut.
Windows should be opened to keep rooms well aired
From the perspective of a builder’s obligations and responsibilities, it is prudent to advise property owners and occupiers of the need for adequate ventilation prior to handover. When exhaust fans are installed in bathrooms, it’s important to ensure there are replacement sources for the air removed by the mechanical vent. In most cases, a window or door still needs to be opened. Property owners often believe a building defect is causing the issue. This certainly can occur but evidence strongly suggests incorrect ventilation control is more likely due to windows and doors are not being opened and ceiling exhaust fans in bathrooms not operating. Education is the key. Many builders have fantastic quality assurance controls and handover detailing. It’s worth considering having something ready to offer the client regarding ventilation and damp to help them enjoy their new home for many years to come. 33
RESIDENTIAL
Building industry goes into political overdrive Policies that impact directly on affordable housing are a top priority for Master Builders. We will continue to lobby against increases in energy stringency in homes. We will point to the high costs of compliance and the adverse impact any further regulatory changes in the National Construction Code will have on housing affordability. Master Builders is well prepared thanks to a campaign fund established last year. This means we have the resources to fight on your behalf, both publicly and behind the scenes at the federal political level. At a state level, Master Builders has put extensive work into a budget submission based on the understanding that evidence-based decision making is vital to effective policy change.
Housing Director Jason Robertson
We can expect a year of hyper activity in the political world as we prepare for a federal election and state budget. Election years require intensive advocacy and lobbying efforts. Master Builders is ready and we will make sure our views are put forward and the politicians hear our concerns on the issues which affect our industry. On the national level, issues of primary importance to the residential sector include the debate on restrictions on negative gearing, increases in capital gains, tax cuts for companies, small and medium businesses and sole traders and the regulatory impacts of changes to the National Construction Code and Building Standards. Master Builders will lobby hard for the retention of current negative gearing arrangements and to keep the current 50 per cent capital gains tax discount. We will strongly oppose any policy that increases tax burdens affecting industry.
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Part of the submission has included an increase of the threshold for Keystart loans. We have submitted for the expansion of the income levels for Keystart in all categories including singles, couples and families to ensure support for the many first home buyers who cannot presently access finance. With the Keystart loan book increasing by $420.9million, it is sensible for the government to consider the request. We also submitted full retention of the First Home Owner Grant and consideration for a further boost. On the regulatory front, this year we will see the state response to the federal Building Confidence report. There were 44 recommendations in the report, including mandatory inspections and changes to building practitioner and contractor registration requirements. Our policy position on building regulatory reform has been well received by government and Master Builders will continue to press for meaningful, sustainable reforms that deliver the best outcomes for industry and the general public. Master Builders has engaged heavily with the State Government to progress our
policy mandates. This includes reducing statutory time frames from 10 days to five, a staged building permit approvals process, a proper process for amendments to building projects and electronic lodgement for building applications. Master Builders developed our Easy Start proposal which is now underway and is a key element to achieving the reforms desperately needed to reduce red tape and allow building approvals to be dealt with quickly. Planning reform remains one of our top priorities. We have consistently lobbied the government on the negative compounding impacts of regulatory burdens on industry, with a fundamentally flawed statutory planning process, no accountability on planning professionals and inconsistencies within regulatory planning departments. We will continue to press for change, including fast tracking single dwelling planning applications, accreditation/registration for town planners, further exemptions with R-D Code elements, electronic lodgement for planning applications and measures for consistency in planning interpretation within local government. Master Builders is acutely aware of valuations and lending criteria being critical issues, and we have continued to engage with leading financial institutions to address our concerns. A dedicated sub-committee has been formed and this will remain a top priority for the association. We are also working with the national office on the ongoing fall-out from the banking royal commission. The issue of indemnity insurance is also a high priority policy matter, with an enormous amount of work to date being undertaken and our lobbying efforts continue. It will be a big year for the residential sector and we will meet the challenges head on.
MASTER BUILDER AUTUMN 2019
REPORTS: BUILDING BUSINESS
The local energy behind WA As a proud partner of the Master Builders Association of Western Australia, Kleenheat is helping to bring real ongoing value to homes and businesses across our home state. Since starting out right here in WA in 1956, we’ve been on a mission to be the energy provider of choice – offering reliable energy products, award-winning customer service and supporting the community that supports us. On top of more than 60 years’ experience in liquefied natural gas (LPG), Kleenheat retails natural gas to more than 190,000 homes and businesses across WA – and electricity to eligible users – helping to keep our home state humming. Natural gas Reducing household and business running costs is easier with natural gas – the flexible and reliable form of energy. Kleenheat services WA’s entire natural gas distribution network across Perth, north to Geraldton and south to Busselton. LPG LPG offers safe and reliable energy for cooking, home heating and hot water needs – an efficient and costeffective energy option. Plus, having one of the largest
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company-owned LPG road tanker fleets in WA means Kleenheat can deliver to more places, more often. Electricity Kleenheat retails electricity to eligible business customers connected to the electricity network in WA. Businesses using more than 50 megawatt hours (or 50,000 units) of electricity per year may have the flexibility to choose their electricity supplier. That’s where we can help. When it comes to energy, local matters As the local market’s leading challenger, we like to do things a little differently in delivering reliable energy solutions and real ongoing value in WA. Local households choosing Kleenheat for natural gas can look forward to generous discounts on their natural gas usage charges. Plus there’s access to extra value through partnerships with RAC and flybuys – and exclusive customer offers and competitions. Local businesses can look forward to dedicated support from Kleenheat’s business sales team, working closely with clients to deliver tailored energy solutions to meet needs and budgets. Everyone loves a little something for nothing – so we aim to reward our customers with real ongoing value
Kleenheat offers local service, great value and friendly staff
that goes beyond big discounts. We’re talking flybuys points earned with every Kleenheat bill, beefed-up savings for RAC members, access to some of WA’s most popular events and exclusive customer perks, competitions and giveaways. We offer reliable local support because we live where you live. Our sales, service and support teams are locally based and on local time. Whether you’re connected to natural gas or serviced by our broad LPG network, we’ve got people on the ground here in our home state. For more information on how Kleenheat is meeting the energy needs of households and businesses in WA, visit our website at kleenheat.com.au.
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Member Savings Scheme SAVE WITH A MASTER BUILDERS MEMBERSHIP Master Builders members can save through our growing Master Builders Member Savings Scheme. To access our range of savings visit www.mbawa.com/become-a-member/member-savings/
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Marketing & Partnerships Manager, Kelly Matusik Ph: 9476 9800 or E: kelly@mbawa.com
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A: Level 3, 35-37 Havelock Street, West Perth P: (08) 9476 9800 | E: mba@mbawa.com W: www.mbawa.com SMV01_2019
MEMBERSHIP
Tennis tournament A fine day in late November brought out the best competitive spirits and, in some cases, form among the 18 players at the Master Builders Tennis Masters match.
Master Builders welcomes new members A Splash of Glass Alltools WA Pty Ltd
Players were paired up for a round-robin competition on grass at the prestigious Royal Kings Park Tennis Club and, as always, some partnerships were caught out by a lack of preparation, poor technique, unlucky shots and intimidating opposition while others showed surprising skill and athleticism.
Atlanta Tiling Bespoke Luxury Builders Biznostics Cam Electrical Services Chuditch Design and Construct Pty Ltd
Here are the results of this final grand slam of 2018:
Design Renovate Pty Ltd
Bringing up the rear with 24 games after five sets were Master Builders membership officer Karl Millard and Paul White from Construction Hydraulic Design WA. Karl, a regular night tennis player in the hills area, found the warmer and brighter conditions affected his game which sometimes verged on erratic. In eighth position was Jeff Concanen from MBA Insurance Services and Master Builders executive director John Gelavis Executive Director with 28 games. Jeff’s new look failed to hide his lack of tennis preparation while John’s enthusiasm and mobility around the court couldn’t compensate for his inexperience at the corporate tennis level. He will be one to watch on his next outing, however, since he has demanded a better partner. At seventh were Ben Keane from Construction Hydraulic Design WA and Brian Martinovich from MBA Insurance Services with 30 games. Ben’s strokes were impressive but his opponents got the better of him and his partner during some close rallies. Brian could be a big improver with more coaching and practice in the lead-up to these big events. In sixth position was James Moore from Cbus and Steve McConkey from Multiplex with 32 games. Both players exhibited a great array of shots but consistency and finesse let them down. As an unproven combination, both James and Steve could learn from their siblings who are winning junior tournaments. Kevin Skipworth from Perth Convention Bureau and Joe “the Italian Stallion” Gangemi from Butler Settineri won 36 games to come in fifth. Despite a knee support, Kevin plays a good game which reflects well on his North Beach Tennis Club membership. Joe continues to defy the punters with his lack of lead-up match experience offset by agility around the court and a surprising number of winners, including from the frame of his racquet. Imagine if he practiced more. There was a tie for third place between the combination of Robert Hall from Butler Settineri and Alex Baldock 38
Details Project Solutions Domination Homes Easybuild WA Pty Ltd Globe Construction Group & Civil Contractors Pty Ltd Jonathon Beau Ledger Robert Shaw and Michael McLean triumphed at the latest Master Builders tennis competition.
Kerrigan Builders Limescapes
of Activa Developments and Tony “the Sledger” Tarzia from Coastal Tiling and Emma Choulet of ROCG on 37 games each. Both Robert and Alex were making their debut at this elite level and confounded the bookies with their reach and ground strokes. They both relished the competitive spirit and camaraderie of the event. Despite a shoulder injury, Emma played strong tennis throughout with some stunning winners.
Mclaren Constructions
In second position with an impressive 50 games to their credit was Kendal Moss of Multiplex and Tom Jacobs from Jackson McDonald. This was one of the strongest combinations ever seen on the Master Builders circuit with both players in career best form, rarely making errors and hustling magnificently. The handicappers will be reluctant to put these two wily veterans together again on the tennis court.
RMA Civil Pty Ltd
The outright winners of the November grand slam were Robert Shaw of Daly & Shaw and outgoing director Michael McLean with 54 games. This was an upset since Robert didn’t play in the lead-up Dunsborough event which Spadaccini and van Dongen won narrowly from Gelavis and McLean. Although Robert and Michael were fortunate with their draw, they played some amazing tennis which surprised their opponents. Sentiment may have brought the best out of Shaw because this was McLean’s last Master Builders grand slam in his current position.
Webbcrete
Melchor Pty Ltd Michael Cheeseman MLC Roof Services Pty Ltd PR Power Pty Ltd Prowest Custom Builders Pty Ltd
Site Sentry Pty Ltd Smart Homes WA Pty Ltd Steven Davis Builder Top Mortgages Valley Road Construction
Willox Carpentry
The sponsor, our auditor Butler Settineri, kindly agreed to support the upcoming 2019 Master Builders corporate tennis on 10 April and 27 November. MASTER BUILDER AUTUMN 2019
MEMBERSHIP
New faces at Master Builders We welcome new receptionist Cheyanne Day just as warmly as she is now welcoming visitors to Master Builders’ head office. Cheyanne, previously from McMahon Contractors, joined us at the end of January and she has a strong background in front office administration and customer service. She has also worked as a sales assistant and administrator with a building firm in Esperance so she brings a sound knowledge of the construction industry to her new job. Cheyanne Day
Also joining us is Shannon Scott, the new branch administrator in our South West office. Shannon comes to us with more than 10 years’ administrative experience in the building industry, working with Master Builders members Gemmill Homes, Home Group WA and Ventura Homes in the South West region. She started at Master Builders in February.
Shannon Scott
After re-locating suddenly from Bunbury to Perth, Zoe Mills is joining our membership department two days per week. Zoe has a strong background as an administrator and customer service provider within the building community so she will be an asset to the team.
Radley de Silva has retired as Executive Director of the Master Builders Association of Victoria after 17 years’ service. His successor is Rebecca Casson.
Congratulations to Hansen Yuncken in celebrating its centenary of construction in 2018. Former CEO, Peter Kennedy, is a Past President of Master Builders Australia while current CEO, Peter Salveson is President of MBASA. Hansen Yuncken attribute its enduring success to its ability to evolve and adapt, to anticipate changing conditions and demands, to nurture innovation and to plan for the long term.
Congratulations to Activa Developments in winning a Property Investors Award in the developer category. Well done to Jason Janssen and his team.
Nigel Slater has been appointed General Manager, Operations with Midland Brick following Greg Smith’s departure. Tom Guthrie has taken on a new role as General Manager, Sales and Marketing – Western Region and Midland Brick.
Congratulations to John and Sheila Mitchell of Universal Constructions on their diamond wedding anniversary on 22 November.
Former Eagles premiership player and Norm Smith medalist, Andrew Embley has been appointed New Home and Land Specialist with BGC Residential.
Allison Stephens has been appointed State Manager of the Prostate Cancer Foundation in WA and has joined Master Builders Health Alliance.
Congratulations to Professor Keith Hampson, the CEO of the Sustainable Built Environment National Research Centre in being elected a Fellow of the Australian Academy of Technology and Engineering.
Simon Barry has been appointed as State Manager of the Australian Institute of Architects following Michael Woodhams’ resignation after five years in the role.
Ricky Burges has retired as CEO of the WA Local Government Association.
Following Sue Murphy’s retirement, Pat Donovan has been appointed as Chief Executive of the Water Corporation.
Paul Jackson from Big Data Special Technical Group in WA has been elected President of the Australian Institute of Refrigeration, Air Conditioning and Heating.
Darren Kavanagh has been appointed as the new WorkSafe WA Commissioner following McCulloch’s retirement last year. Zoe Mills
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ADVERTORIAL FEATURE: WATERPROOFING The Australian Institute of Waterproofing - committed to raising waterproofing standards and training in Australia The Australian Institute of Waterproofing (AIW) represents the interests of the whole building industry in raising the standard of waterproofing in Australia by becoming the 'central source' of knowledge, augmented by members’ experience to mentor continuous change.
THE NUMBER ONE CAUSE OF BUILDING DEFECTS IN AUSTRALIA A statistic often-quoted in the waterproofing and insurance industry is that waterproofing is 1.8 per cent of construction cost but accounts for 83 per cent of building defect complaints. Waterproofing defects and failures, including internal water damage and water entering from the outside of a building, are the number one cause of building defects facing Australia’s construction landscape today. Defects from ineffective waterproofing represent a huge cost to business. Construction businesses not only have to deal with the frustration of managing water leak issues long after construction is complete, but also losing significant percentage of their profit margins due to waterproofing rectification and remedial services. Building damage caused by water leaks also impacts many property owners who are required to endure lengthy legal battles for rectification costs or outlay the expense themselves. COMMON CAUSES OF WATERPROOFING DEFECTS The causes of waterproofing damage and defects across building and construction sites are many and varied. Some of the more common causes are the following. Lack of contractor expertise When waterproofing services are overlooked in the planning phase of construction it is frequently due to a lack of contractor expertise. An inadequate knowledge of waterproofing issues can lead to inappropriate waterproofing membrane product selection, and/or incorrect installations that result in failure. A contractor without the right level of expertise can incorrectly diagnose the root cause of a waterproofing problem, which then results in the failure of expensive repairs to fix it. 40
Cost cutting Cost cutting on waterproofing in the building process is, at best, very short sighted. Water leaks and the extensive damage is creates very often leads to lengthy legal battles and expensive remediation works.
AIW MEMBER BENEFITS The AIW welcomes all construction industry professionals: architects, builders, developers, building designers, surveyors, manufacturers, affiliated trades etc.
Waterproofing contractors may attempt to cut costs by omitting recommended primers, or by selecting inferior, incorrect and inadequate waterproofing membrane products. Others may skip the many application techniques that are important to the long-term performance of a waterproofing system in this cost cutting culture.
Belonging to the AIW helps raise the standard of waterproofing in the industry and provides members with significant direct benefits.
The reality is that skimping on appropriate waterproofing at the build phase will inevitably end up costing the builder more. Quick fixes add up over time and are more likely to be more expensive and create more stress than high quality waterproofing properly installed the first time. Building movement Building settlement, building movement or an inadequate amount of expansion joints, or indeed the complete lack of them, can cause the waterproofing membrane to fail.
• Access to the latest technical information, including technical drawings • Access to ‘formal course’ and ‘outline’ training via our network association with AMA and our own course material • The right to use the AIW logo in members’ communication to build brand credibility. • ‘Forum’ web connectivity with others in the industry to update information or find solutions. • Contractors ‘lead’ generation in the local area or field of expertise • Greater connectivity to members’ websites • The opportunity to get a discounted business website designed • Economical annual membership fees in every category
This may be exacerbated by the selection of an inappropriate membrane, such as a system with inadequate elongation properties to cope with normal movement of a building envelope. Waterproofing membrane at the end of its effective service life Though product marketing may say otherwise, a waterproofing membrane unfortunately does not offer a permanent lifelong solution against water damage. Over time a membrane’s effectiveness will decrease, especially membranes exposed to the harsh rigours of the Australian climate. Knowing when to re-apply or install a completely new membrane is crucial to maintaining the long-term structural integrity of a building.
FOR MORE INFORMATION CONTACT THE AUSTRALIAN INSTITUTE OF WATERPROOFING: Phone: 1300 249 466 Website: www.waterproof.org.au CONTACT PAUL EVANS, PRESIDENT OF THE AUSTRALIAN INSTITUTE OF WATERPROOFING: Phone: 03 8812 2918 Website: www.waterproofingfew.com.au MASTER BUILDER AUTUMN 2019
Are your showers ticking time bombs? Despite builders best efforts, leaking showers are consistently listed in the QBCC’s 10 most common defects. Sadly, sometimes this is due to sub-standard workmanship, but most of the time it is the design of the shower itself which is creating the potential for disaster. Most contractors are at a complete loss as to why, but detailed testing has shown how, by the action of expansion and contraction, water is “pumped” along glue cavities to escape the shower enclosure, no matter how well it is water-proofed. The best way to prevent the problem is to seal the screen directly to the membrane, and NOT to the tiles. Waterstop Streamline provides: •
Positive connection between screen and membrane
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Maximises floor area
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Provides a template for following trades
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Ensures correct fall to waste
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Complies with and exceeds AS3740
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Modern, cost effective, one-piece design
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20 different shapes and sizes
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Minimum change for maximum benefits
My business has expanded rapidly since we star ted using th e Waterstop Streamline ho b and now I have tilers voluntarily recommending the Watersto system – an p d me – to othe r builders. Everyone that uses it loves it.
Mr Fred Medd ings Managing Direc tor, Watertight Austr
alia (Waterproo
By us ing W aterst the sh op Str ower w eamlin ill be It ha e I kn perfec s to b ow t ever e, bec design y tim ause t ed to e. h is d p ic of th roduct tate p e othe lacem is r comp ent o the c onent f all omplet s to m e show imposs ake up er. It ible t ’s virt o stuf ually f it u Mr p.
Glen W hitehe Manag ad ing Dir ector, BJM D e
velopm
ents
fers)
Remove the doubt. Fit Waterstop Streamline ... and forget about leaking showers.
Water escapes shower enclosure
Tile
Screen ‘sealed’ to tiles with silicon Tile Water path
Bed
Hobbed shower
Bed
Water escapes shower enclosure
Membrane
Waterstop Streamline Screen ‘sealed’ to tiles with silicon
Screen
Screen
Rebated or flow-through shower
Water path
Streamline
Screen Screen sealed to membrane with silicone
Keyway to trap liquid membrane
Tile Tile height gauge
Tile Hob
Bed
Bathroom floor tile height optional Substrate
Membrane
For more information, visit www.waterstopstreamline.com.au Phone 07 5426 3700 • Fax 07 5426 3711 • Email sales@gleda.com.au
Bed Membrane