Master Builder WA Summer 2017-18 by arkmedia4217

OFFICIAL MAGAZINE OF THE MASTER BUILDERS ASSOCIATION OF WESTERN AUSTRALIA VOLUME 14 | NUMBER 4 | SUMMER 2017-18

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FULL WRAP.

JWH’s Telethon triumph

Housing affordability: a national crisis?

Master Builders leads on industry safety

Big fines for drones

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2 CONTENTS SUMMER 2017-18

MBAWA BOARD OF MANAGEMENT: President: Rob Spadaccini Senior Vice President: David Crothers Vice President: Jack Pleiter Treasurer: Grant Burgess Immediate Past President: John Ripp Board Members: Philip Kemp, Jason Kunkler, Steve McConkey, Dan Perkins, Robert Shaw Michael Vermey, Michael Van Dongen SENIOR STAFF: Director: Michael McLean Legal Manager: Charles Anderson Construction Director: Kim Richardson Membership Services Manager: Veronica Mill 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 Safety Manager: Michael Fitzgerald 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

Our Cover A magnificent home, built by BD Partington in Esperance, was among an impressive range of winners in recent Master Builders Building Excellence Awards in the Goldfields Esperance, Great Southern and Geraldton Midwest regions. For full details, see our coverage on pages 28 – 41.

REGIONAL BRANCHES: Albany-Great Southern: Linda Gibbs Ph 9841 6232 Bunbury-South West: Geoff Bosustow Ph 9721 6547 Geraldton-North West: Dianne Gilleland Ph 9921 5061 Esperance: Doug Backhouse Ph 0437 184 366

MEMBERSHIP INQUIRIES: Veronica Mill Ph (08) 9476 9800

In this issue... FOREWORDS

UPDATES

President’s File........................................................4

Building Business..................................................42

Director’s File...........................................................6

Health....................................................................46

REPORTS

Housing.................................................................48 Industrial Relations................................................50

General News..........................................................8

Safety....................................................................57

Branches...............................................................18

Technical...............................................................59 Training..................................................................60

AWARDS

Legal......................................................................62

Geraldton Midwest Awards...................................28

Insurance...............................................................63

SUBSCRIPTION ENQUIRIES: Master Builder is available for subscription at a cost of $55/year. Contact Membership Services Manager Veronica Mill via email at veronica@mbawa.com for further information. PUBLISHED BY

Published by: ark:media Phone: +61 7 5629 5300 Email: marketing@arkmedia.net.au Web: www.arkmedia.net.au Editor: Susan Guilfoyle Advertising Sales: Daniel Rutland, Rose Delosreyes Design Team: Andrew Crabb, Arlen Chidzey Advertising Manager: Yvonne Okseniuk

Goldfields Esperance Awards...............................32 Great Southern Awards.........................................36

MEMBERSHIP Membership..........................................................52 Personal Pars........................................................54 Member Savings Scheme.....................................64

FEATURES Indoor/Outdoor living trends: adding so much more than aesthetic value...........................68

Master Builder is the official publication of The Master Builders Association of Western Australia. It is produced five times per year and published by ark:media. Master Builders Association of Western Australia was established in1898 and is the state’s oldest building industry organisation. The MBAWA is part of the Australia-wide Master Builder 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.

4 FOREWORDS president’s file SUMMER 2017-18

Hobart hosts Nationals in November Cascade Brewery or Parliament Square Redevelopment project. There were optional tours for partners and lots of great sightseeing attractions within close proximity to Hobart. From a National Awards perspective, this is an important occasion for all builders, as winning a national award is a great honour which rarely comes around. I believe our 33 nominations from WA this year comprised our strongest field ever but it’s a tough competition to win.

Robert Spadaccini

Master Builders National Conference and Awards were held in November, on this occasion, for the first time in Hobart. I thoroughly enjoyed attending, both as an award nominee and conference participant. Having been to several Master Builders National Conferences and Awards previously, I can heartily recommend the experience to all members, your partners and staff. I believe the format and line-up of speakers at this year’s conference definitely were among the best Master Builders has organised. Some of the things of particular interest included: • The Cbus dinner at Mona Museum of Old and New Art. • The Toyota welcome dinner. • Bernard Salt’s presentation on future trends that are likely to shape our industry. • Mike Pivac’s update on his company’s robotic bricklayer. • Hearing from four-time Olympic medallist Anna Meares on ‘the power of mind over the body’. There also were several other guest speakers who proved to be thought-provoking and entertaining. A difficult decision was whether to do the optional tour of the historical buildings,

The judges, including active and retired builders from each State and Territory, determine whom they consider to be award winners in each category. The quality of each of the entries is incredibly high, and the winner usually ends up being decided by a majority vote. WA is always proud to participate in the National Awards program and we have done extremely well over the years. Adrian Zorzi was last year’s National Residential Master Builder of the Year for a magnificent home he built in Witchcliffe. There were some outstanding homes and commercial/industrial projects entered this year and these are a credit to each of the builders involved. Time constraints prevent us publishing more detail at this time, but I’m thrilled to announce our WA successes. Commercial Aquatics Australia won National Specialist Contractor of the Year for its precision work on the swimming pools at Crown Towers Perth. PACT Construction’s efforts on St George ChambersChurch House resulted in it winning the National Commercial/Industrial Construction ($20-50 million) Award. Element Builders won the National Project Home $500,000-$1 million Award and Ultimo Design & Construction took out the National Commercial/Industrial Construction (under $5 million) Award for the Guildford Hotel redevelopment.

Acknowledging the support of our 2017 Partners: Insurance Partner

One of my homes was competing for the top home award for the first time and I’m proud to say I was honoured with the National Residential Master Builder of the Year Award capping a great year for me and my company. About 45 members and their partners from WA, including several of our Board members, were among the 350 or so who attended the Conference and 550 at the Awards. If you want to learn more about your industry and meet peers from other states and territories, attending events such as this is invaluable. Look out for details of next year’s Conference and Awards on the Master Builders Australia website. Don’t regret missing out. All who attended this year will be raving about it back in Perth, I can assure you of that.

Robert Spadaccini President

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6 FOREWORDS director’s file SUMMER 2017-18

Award winner spans the centuries Fairweather was elected Master Builders’ tenth president from 1919-1920 when the Association had 62 members. His son, also William, joined the business in 1916 and in 1926 ownership was restructured and the name changed to W Fairweather & Son. Fairweather Junior probably was the first WAborn president of Master Builders when he took the reins in 1938-40. At the time, most of the State’s population heralded from overseas or from the east coast. Michael McLean

This year marked the twentieth occasion Master Builders’ Robert Law Award has been presented to an individual or organisation that has made a significant contribution to WA’s building industry. In a testament to hard work, dedication and perseverance, the 2017 Robert Law Award went to building company, W Fairweather & Son. Compared to past recipients of the award, the company has the closest link to Law, Master Builders’ first president in 1898. In fact, in what should be an inspiration to all builders and contractors looking to create a lasting legacy, the company traces its roots back to 1895.

He was respected as a good builder who enjoyed meeting at the Esplanade Hotel in Fremantle where a great deal of business was conducted. During the Second World War the company undertook a big number of Defence Department projects, including the Learmonth airfield. After the war, the firm built the Princess Margaret Hospital Nurses’ Quarters, the South Fremantle Power Station, the East Perth Football Club Grandstand and the Rivervale Hotel to name just a few projects. When the Builders’ Registration Act commenced in 1940 Fairweather Senior received the number one builders’ registration certificate. Fairweather Junior held registration number 23. In 1957-58, he was elected president of the national Master Builders Federation, the sixth top officer from WA since the Federation as founded in 1890.

William Fairweather was born and educated in Scotland, entered the building industry at 18, emigrated to Queensland at 23 and spent 12 years there as a builder. He travelled to Coolgardie in 1895 attracted by the gold rush and established W Fairweather, Builder and Contractor.

Third generation William Brownlie Fairweather, grandson of the founder, joined the firm in 1956. He held builders’ registration number 1881 and was active in Master Builders’ affairs, serving on the Association’s Industrial Committee.

When Master Builders was formed in 1898, Fairweather joined as a founding member. In 1901, the business relocated to Subiaco and from 1907 worked from 137 Hamersley Road with a joinery works in Perth Street, now Churchill Avenue.

In 1961 W Fairweather & Son became an incorporated company and moved to its present premises in Churchill Avenue, Subiaco, the site of the original joinery workshop. Over the ensuing decades, the company continued to be responsible for notable projects including

Acknowledging the support of our 2017 Partners: Insurance Partner

the Dalkeith Picture Theatre, Broadway Fair Shopping Centre and the Catholic Education Centre, blessed by Pope John Paul II in 1986. Peter Fairweather, the great grandson of the founder, joined the firm in 1990 and became managing director in 2004. Under his leadership, Fairweather’s principal areas of activity have been in refurbishing, upgrading and altering institutional buildings, offices, retail stores and supermarkets with the emphasis on projects of a specialised or difficult nature or of heritage significance. Projects of note have included the UWA Student Services Precinct, Weld Club Master Plan Refurbishment, Curtin University Accessibility Inclusion Plan, a range of work at the University of Notre Dame including the School of Medicine, St Teresa’s Library, Tannock Hall and the Health Sciences Building, Aquin House for the Archdiocese of Perth and Niana House at the Castledare Retirement Village. W Fairweather & Son has had a remarkable history, surviving World Wars, the Great Depression, booms and busts, numerous regulatory changes and different governments. Few WA building businesses can match the company, which over time, has evolved, still to be shaping the future of WA’s built environment 122 years after it was formed.

Michael McLean Director

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8 REPORTS general news SUMMER 2017-18

Industry giving builds community

The Aboriginal Men’s Healing Centre might not have been possible without pro bono work by professionals supporting COLAB’s vision.

COLAB is helping the Claremont Therapeutic Riding Centre.

Pro bono service is quickly becoming a more significant part of corporate social responsibility, according to COLAB, the organisation connecting architects, engineers and builders to provide expertise free to WA community groups in need.

Play for all Work is underway on the All Abilities Play Space on the Nedlands Swan River foreshore. The $4 million community-driven project at Beaton Park in Dalkeith will provide an innovative state-of-the-art play facility for everyone, regardless of age or ability. The project was initiated by the Rotary Clubs of Nedlands, Subiaco and West Perth and through COLAB, Fiona Robbé Landscape Architects and Wood & Grieve Engineers have played parts in pro bono design and construction services.

COLAB, formerly known as Australia’s Bridge, says most organisations tackling social problems don’t have access to the professional skills they need to succeed. Without this talent, few have their intended impact on critical issues like the environment, health and education. Pro bono service makes business talent available to organisations working to improve society. COLAB says it also provides unique opportunities and benefits for building professionals. The nature of community based projects (often much smaller than the commercial projects professional organisations generally undertake) enables young professionals to take a lead role with the support of mentors. Professional networks for the individual and company also are expanded beyond conventional spheres, creating unexpected opportunities. Since COLAB’s inception in 2014, its built environment professionals have supported $34 million worth of projects by doing $511,000 of work. Projects include a centre for aboriginal domestic violence rehabilitation, accommodation for the homeless, a riding centre, a community education space and a co-working lab.

Leg up for disabled riders The Claremont Therapeutic Riding Centre is an example of professionals assisting with their time and skills. The centre does not have suitable disabled toilets, so the length of horse riding therapy sessions is restricted. Wood & Grieve Engineers volunteered its services pro bono enabling the Centre to do what had been thought impossible. The Centre now can proceed to raise much needed funds to improve its services. From little things… ‘This stops with me’ is the conviction that led to starting the Aboriginal Men’s Healing Centre. In a partnership facilitated by COLAB, the Centre has connected with pm+d architects, Structerre and Matthews McDonald Architects who together are developing a residential centre for perpetrators of domestic violence. The Centre will offer accommodation, training and a range of healing and outreach programs. The services COLAB provides have given the Centre access to specialist professionals, reducing start-up costs exponentially. “Without COLAB, the Aboriginal Men’s Healing Centre would be practically impossible to even exist,” says the Centre’s founder and CEO, Devon Cuimara. “The single most important thing for AMHC is that COLAB connects professional specialists who are true visionaries and people who care and share. From little things, big things grow.”

About COLAB COLAB’s vision is to develop a strong and sustainable culture of building social capital through pro bono work, facilitating a market place for building professionals to contribute to community projects. Contact info@colab.org.au for more information or visit www.colab.org.au.

general news REPORTS 9 S U M M E R 2 0 1 7-1 8

Positive year for MyLeave In its 2017 Annual Report recently tabled in Parliament, MyLeave (the Construction Industry Long Service Leave Scheme) reports a stronger financial position and a fully funded balance sheet with an accounting ratio of 136 per cent (assets/liabilities) in the financial year to 30 June. Significant growth continued in the underlying key area of payments to workers. In the 12 months to 30 June, MyLeave made 5808 worker payments totalling $47.4 million, a record level and significantly higher than the 5100 payments totalling $39.6 million in 2016. MyLeave CEO, John Youens.

While significant investment portfolio growth has been recorded, this has been necessary to align the portfolio to the Actuary’s calculation of total actuarial liability for worker payments. The portfolio is also required to have a financial buffer to cover global investment market downturns. Actuarial calculations are updated annually and reflect assessment of annual data and quarterly returns submitted by employers. MyLeave’s annual actuarial analysis forecasts actuarial liability to grow to $464 million at 30 June 2018, and $497 million at 30 June 2019. MyLeave’s investment adviser, the Commonwealth Bank, has assisted establishing a well-structured investment portfolio in various key asset classes. Within the asset classes, MyLeave invests with various individual fund managers with investment styles designed to provide optimum performance and reduced deviation in performance over time. The result of these factors is that MyLeave’s Balance Sheet records a sound financial position as shown below.

MyLeave has a sound record of reducing the employers’ contribution levy and the board soon will decide the levy for 2018. CONTRIBUTION LEVY Levy percentage Percentage change

STATEMENT OF FINANCIAL POSITION 2014

2015

2016

2017

Assets

$449.2M

$515.5M

$541.9M

$584.7M

2013

2014

2015

2016

2017

Liability

$331.1M

$376.0M

$464.8M

$428.9M

2.00%

1.90%

1.50%

1.35%

Equity surplus

$118.1M

$139.5M

$107.1M

$155.8M

no change

-0.10%

-0.40%

-0.15%

no change

136%

137%

125%

136%

MyLeave 2017 statistics show the industry downturn and the important place MyLeave has in delivering a significant, and increasing, volume and value of worker payments. WORKERS 201

201

Total registered

131,517 +9%

130,151 -1%

127,941 -2%

121,533 -5%

Total contribution for

74,384 -3%

76,271 +2%

76,592 nom.

68,134 -11%

3,293,582

3,299,286

3,296,013

2,891,334

(Average per a quater) Total days of service (average per a quater) Number of benefits payed Value of benefits payed

3,540

3,910

5,100

5,808

$29.1M

$30.9M

$39.6M

$47.4M

The data highlights a steady decline in the number of registered workers since 2014. In addition, the number of active workers (total contributed for) shows a significant, rapid reduction to 68,134 (-11 per cent) from 2016 (76,592). In contrast, the average number of registered employers (5049) has not shown any material movement over recent years. In 2017, MyLeave achieved a 9.0 per cent investment return percentage, well above the 2016 return (1.9 per cent) and the long term average (6.4 per cent per annum). Investment performance will fluctuate on a yearly basis but the investment portfolio is structured to best accommodate this. The table below shows the investment portfolio (including cash deposits by MyLeave) and also the significant revenue / income impact of sound investment returns for MyLeave. INVESTMENT PORTFOLIO & INCOME 2013

2014

2015

2016

Total portfolio

$342M

$424M

$490M

$515M

2017 $557

Investment income

$50.2M

$48.4M

$34.6M

$13.1M

$48.1M

Accounting ratio (Assets/Liabilities)

STATEMENT OF FINANCIAL POSITION 2014

2015

2016

2017

Assets

$449.2M

$515.5M

$541.9M

$584.7M

Liability

$331.1M

$376.0M

$464.8M

$428.9M

Equity surplus

$118.1M

$139.5M

$107.1M

$155.8M

136%

137%

125%

136%

Accounting ratio (Assets/Liabilities)

In 2017, MyLeave rolled out of a new process of paperless quarterly returns for employers. In the June quarter, only 124 of 5016 registered employers were posted a paper return. Workers were advised of MyLeave’s annual provision of the Onsite Newsletter and Days of Service Notice on a paperless basis. Workers are encouraged to go online to check contact details held by MyLeave to ensure that in March 2018 the newsletter and notice can be distributed electronically to as many as possible. MyLeave staff remained stable during the year with none leaving, minimising recruitment costs and maintaining effective staff productivity. MyLeave continues to work with the other state and territory schemes, examining ways that co-operation can be extended for the benefit of the schemes and the industry throughout Australia. For enquiries regarding the MyLeave Scheme contact Hi@MyLeave. wa.gov.au or 9476 5400.

10 REPORTS general news SUMMER 2017-18

Praise for Hadgkiss

Hobart Conference Sparkles Reports indicate the recent Master Builders Australia National Conference was an outstanding success. The conference, in Hobart in November, boasted a host of high profile speakers and a highlight of the building calendar, the annual National Excellence in Building and Construction Awards. World-class speakers at the conference included inspirational Olympic cycling champion, Anna Meares, thought-provoking demographer, Bernard Salt, and Fastbricks Robotics innovator, Mike Pivac. Tasmanian Premier, Will Hodgman, provided the welcome and keynote address.

Nigel Hadgkiss

Master Builders Australia has paid tribute to former Australian Building and Construction Commissioner, Nigel Hadgkiss, who resigned from his post in September. According to Master Builders, the Commissioner made a “vital contribution to restoring the rule of law in the construction industry.” “Mr Hadgkiss has played a crucial role over many years in combatting the thuggery and unlawful conduct of the building unions, particularly the CFMEU, including in his previous roles as director of Building Industry Taskforce and director of Fair Work Building and Construction,” Master Builders CEO, Denita Wawn, said. Record penalties imposed on the CFMEU over its conduct and that of its officials, including its NSW state secretary on the day of Mr Hadgkiss’s resignation, highlighted his work as ABCC Commissioner and the need for that work to continue under his successor, Ms Wawn said. “Master Builders recognises Nigel’s tireless contribution, in the interests of the Australian community, in working to change these unions’ entrenched culture of unlawfulness,” she said. Employment Minister, Michaelia Cash, also praised Mr Hadgkiss saying he had played a pivotal role in restoring the rule of law to Australia’s building and construction industry, despite relentless opposition and appalling intimidation from lawless construction unions and their political supporters. “The Government thanks Mr Hadgkiss for his service and wishes him well in his future endeavours,” she said.

There was a focus on leadership, innovation and visionaries aimed at helping industry make informed decisions on future trends and business growth, and on developing and maintaining strong leadership attributes. The program had been designed to provide learning and networking opportunities and an interactive exhibition showcased the latest building products and services. A full social program for delegates and partners included a special conference dinner at the world-famous MONA, the Museum of Old and New Art. Master Builders Australia’s CEO, Denita Wawn, facilitated a panel at the Women in Construction Breakfast on the final morning of the conference which wound up that evening with the National Awards. WA once again was well represented at the awards in terms of nominations and success. Commercial Aquatics Australia won National Specialist Contractor of the Year for its work on the swimming pools at Crown Towers Perth. PACT Construction’s St George ChambersChurch House project won the National Commercial/Industrial Construction ($20-50 million) Award and Element Builders won the National Project Home $500,000-$1 million Award. Ultimo Design & Construction took out the National Commercial/ Industrial Construction (under $5 million) Award for the Guildford Hotel redevelopment. The crowning achievement was that of Spadaccini Homes winning the National Residential Master Builder of the Year Award. The win completed a remarkable year for the company which already in 2017 had won the HIA’s Australian Home of the Year. WA entrants in the Master Builders National Awards had good support from the strong contingent of their fellow contractors attending throughout the conference. The conference also provided an opportunity to explore the iconic tourist destination of Tasmania.

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12 REPORTS general news SUMMER 2017-18

Illegal phoenixing needs attention Master Builders is supporting the ATO and the Phoenix Taskforce to eradicate illegal phoenix activity from the building and construction industry. Illegal phoenixing occurs when a new company is created in order to continue the business of another company – one that has been deliberately liquidated to avoid paying its debts, which might include taxes, creditor payments and employee entitlements. Master Builders’ director, Michael McLean, said illegal phoenixing in the construction industry causes serious problems and personal hardship for those affected by the practice. “As a peak industry body, we realise the ATO can’t solve this problem alone,” he said. “We, as an industry, need to help them to identify the suspected culprits and help stamp out the practice by not engaging the illegal phoenixers. “With the building and construction industry currently experiencing a downturn and extremely competitive pricing, the alarm bells are ringing to watch out for illegal phoenix activity.” Mr McLean said that what was needed was cultural change, where clients and builders scrutinised unrealistic tender prices more

rigorously and carried out more thorough checks of contractors before engaging them. “Master Builders is also encouraging its builder members to work with the ATO to report any examples of previously liquidated companies on their sites which haven’t met their statutory obligations,” he said. The Federal Government is planning to introduce a comprehensive range of reforms to crack down on illegal phoenixing by unscrupulous business directors. A key element will be a Director Identification Number (DIN) which will link with other government agencies and data bases so regulators can track the relationships between individuals and their business activities. Specific phoenixing laws will include a dedicated hotline for the public to report suspected phoenix behaviour, greater penalties for those avoiding their tax obligations and stronger powers for the ATO to recover outstanding tax liabilities. According to the Productivity Commission, an estimated 2000 businesses each year are involved in phoenix activities, costing the economy more than $3 billion. To learn more, go to www.ato.gov.au/phoenix.

Helberg at BMW helm Following the retirement of Bill Sullivan in October, Phil Helberg has stepped into the role of acting deputy director general, Building Management and Works. “BMW’s ultimate objective is to deliver optimal outcomes for the community through effective and responsible management of the Government’s non-residential buildings,” Mr Helberg said. “Our relationship with the building and construction New acting deputy director general, Phil Helberg, has industry, including industry shared his perspective on the relationship between bodies such as Master Builders, BMW and the building and construction industry. is an essential component of achieving these outcomes. I am of the view that these relationships can and should be mutually beneficial.” Mr Helberg said there were significant challenges facing the industry in the current economic environment. “As an ex-builder I recognise how the sector must respond and adapt to these circumstances,” he said. “BMW is not immune to these

challenges, because we must deliver our services with increased cost efficiencies. Overall, I share the view of many of my colleagues that the current economic climate presents an opportunity to find ways for us to work better with our client agencies and with our contractors. “While we rely on industry to innovate to deliver better outcomes, we are also implementing initiatives to support this. We have put mechanisms in place to recognise and reward good performance by our suppliers, and the broader use of qualitative criteria from 2018 will allow contractors to demonstrate the value they bring to a project.” Mr Helberg said BMW must also demonstrate the value it provides to Government and the community, and industry feedback was welcome. “We have had some useful and constructive discussions with Master Builders, individual builders and other industry bodies which have challenged us to review our processes and look for better ways to get things done. “As BMW’s leadership enters a new chapter, I look forward to developing a relationship with the building and construction sector that, at its heart, has both parties on an equal footing: both BMW and industry committing to listening to the other and being open to change.”

general news REPORTS 13 S U M M E R 2 0 1 7-1 8

Double treat at Master Builders’ lunch Guests at this year’s Master Builders-Bankwest CEOs’ and Managers’ Lunch at Crown Perth in August got a sense of the old and new with an address by Fastbrick Robotics Ltd’s Michael Pivac, and the presentation of the Robert Law Award to a century old building company.

Fastbrick Robotics’ Michael Pivac addresses the Master Builders-Bankwest CEOs’ and Managers’ Lunch.

Mr Pivac, executive director and CEO of Fastbrick Robotics, gave insights into the company’s revolutionary commercial bricklaying machine. The company was named WA Innovator of the Year in 2016 for its Hadrian X, the world’s first fully automated end-to-end bricklaying machine and system.

W Fairweather & Son managing director, Peter Fairweather, the great grandson of the company’s founder, received the 2017 Robert Law Award on behalf of his company. With him are Michael McLean (left) and Master Builders’ president, Rob Spadaccini.

In contrast to the new, the 2017 Robert Law Award, named after Master Builders’ first president and recognising exceptional service to the building industry over many years, went to W Fairweather & Son, founded in 1895, a foundation member of Master Builders in WA in 1898, and still in business after more than 120 years. Michael McLean, in his Director’s File on page 6, provides some of the background on the Fairweather story.

JWH in Telethon milestone records

The 2017 Telethon Eden Beach home built by InVogue.

WA Country Builders built the 2017 Telethon regional home in Busselton’s Newport Geographe Estate.

Master Builders has congratulated Association member, JWH Group, on pulling out all the stops to help make Telethon’s fiftieth birthday the biggest success ever.

is very fulfilling. This year’s home sold at auction for $650,000 and will soon be a much-loved home for a young WA couple.”

Two leading builders in the JWH portfolio, InVogue and WA Country Builders, worked tirelessly to create spectacular homes in the metropolitan area and regional WA. Both residences were sold at auction over the Telethon weekend in October. InVogue’s two-storey home at Eden Beach Estate, Jindalee fetched $650,000 and the Busselton home built by WA Country Builders in the Newport Geographe Estate, sold for $900,000. InVogue’s general manager, Jim Ilias, says the design and construction of the annual Telethon Home holds a very special place in the heart of his team. “Each year we throw ourselves wholeheartedly into custom designing a cutting-edge home,” Mr Ilias said. “Our trades and suppliers work passionately alongside our staff to bring the home to life. Being the Telethon Home builder for 12 consecutive years is something we are very proud of and seeing the home go under the hammer each year

JWH Group general manager Jay Walter says Telethon has been a way for his family and staff to give back to the children of WA. “Building the metro and regional Telethon homes allows us to engage further with the community and the people we work with to build something that generates good,” Mr Walter said. “The homes definitely present their challenges with the quick deadlines we need to meet each year, but with a cause that people are very passionate about, it’s amazing what the right group of people can do. “When you see the money generated from Telethon going to initiatives such as the Telethon Institute, with the research and studies they perform, it’s a goose-bump moment when you think how close they could be to finding a cure for an illness, or discovering the source of a problem that can affect so many. It’s when you think about this, you start to wonder how we can generate more money to benefit Telethon.” JWH has raised more than $16 million for Telethon since 2004.

14 REPORTS general news SUMMER 2017-18

Levy looms for clean fill classed as waste A WA Court of Appeals decision has created uncertainty as to whether the use of ‘clean fill’ will attract the State Government’s Landfill Levy. In the wake of the Eclipse Resources Pty Ltd v The State of Western Australia decision in May, confirming the definition of ‘waste’, industry has been left to contend with the fact that ‘clean Michael Norriss. fill’ (for example, surplus fill derived from development) is currently deemed as ‘waste’ in legislation and, in some circumstances, can attract the Landfill Levy (at $90 per cubic metre from 1 July this year). Eclipse sought leave of the High Court to appeal the decision, but this was rejected in October. The development, building and waste industries have been progressively reducing, reusing and recycling construction and demolition (C&D) waste, including reusing ‘clean fill’, but the court decision might have unintended consequences. Sustainability professional and former Master Builders’ waste consultant, Michael Norriss, writes that while there is no doubt the legislative situation is complex, ‘clean fill’ is only one of many C&D issues to be addressed by Murdoch University Environmental Engineering students and researchers. With Waste Authority Smart Waste program funding, Master Builders has been working with the students and researchers to identify C&D

waste issues and provide recommendations to reduce waste generation, increase reuse and recycling, cut waste costs, reduce illegal dumping and reduce the impact of sediment. Some of the research findings are: • Leading builders have reduced their waste levels, cut waste costs and increased their recycling rates to more than 90 per cent. • WA’s recycling rate of C&D waste is on an upward trend. • Recycling of builders’ rubble is very effective. However, the stockpiles of recycled aggregates (including fill) are now at near critical levels. • The WA Auditor General’s report into the State’s Waste Strategy was critical of a number of elements and called for action. • More needs to be done around legislation, data gathering, waste tracking and the reuse of stockpiled materials. In March last year, Master Builders carried out a comprehensive members’ C&D waste survey. The findings are feeding into ongoing research and advocacy. The Association is working with stakeholders to monitor the ‘clean fill’ issue and help find solutions to other C&D waste concerns raised in the research findings. Through the Smart Waste program, Master Builders encourages industry to continue to reduce, reuse and recycle C&D waste, avoid illegal dumping and control sediment. Visit mbawa.com/smartwaste for information and support. The program is ongoing and Mr Norriss continues to work with Master Builders on an informal basis. The Auditor General’s report, Western Australian Waste Strategy: Rethinking Waste, is available at audit.wa.gov.au/reports-andpublications/reports. The Waste Authority’s website is wasteauthority. wa.gov.au and Murdoch student, Chad Harris’s thesis on Perth C&D waste streams is available at researchrepository.murdoch.edu.au/id/ eprint/36711/.

16 REPORTS general news SUMMER 2017-18

Master Builders offers flexible function centres Looking for a venue to hold your next company training session, conference or event?

event, from a sit-down dinner to a theatre style extravaganza. In-house catering facilities, wi-fi and outdoor areas are some of the other features guests will enjoy.

Master Builders has three fantastic venues, located across regional WA, that are ideal for any occasion. Each one is centrally located and has been outfitted with state-of-the-art technology and equipment. The Association’s friendly staff can help customise the rooms to cater for any

Booking a room is easy; simply contact one of the Association’s Business Training and Function Centre locations below, and find out how Master Builders can help make your special occasions memorable.

Classroom training in Albany.

Bunbury’s outdoor area can be a great adjunct to events in the function centre.

Dinner anyone? Geraldton’s centre catering for a large sit-down meal.

Albany 30 Graham Street Albany WA 6330 Phone: 9841 6232 Email: Albany.reception@mbawa.com

Bunbury 19 Clifford Street Bunbury WA 6230 Phone: 9726 0939 Email: southwest@mbawa.com

Geraldton 4 Walton Close Geraldton WA 6530 Phone: 9921 5061 Email: geraldton@mbawa.com

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general news REPORTS 17 S U M M E R 2 0 1 7-1 8

Architect and builder Faigen is a real firebrand

The Igneous System can be used in a wide range of situations.

Artist’s impression of a ‘bushlander’ style Igneous Building System home.

Why do we see settlements that have been decimated by bushfires end up being rebuilt with the same materials and methods as before? The simple answer is we shouldn’t, according to architect, builder and Master Builder member, Phil Faigen, who has created the Igneous Building System to offer a better solution. This “all tempest resistant” modular building system is composed of GRC panels that are prefabricated under factory conditions before being delivered to site and erected. Its novel design means it’s ready for occupation in seven to 21 working days after the completion of site works (depending on size). Mr Faigen said his patented innovative building system has a structural shell (external walls, floors, roof and balconies) that is entirely noncombustible, robust, virtually maintenance-free and perfectly suitable for bushfire prone areas. “The modular units are delivered to site complete with most fixtures and fittings, finishes (internally and externally) and, if specified, even with solar absorbers, a wind generator, wet area pods (fitted out) and water tanks for use as potable water for firefighting. The lot!” he said. “The building may not need mains power or scheme water.”

Projects built using the Igneous Building System are capable of resisting damage by fire because: • The building’s structural shell is composed of only one material that is non-combustible. • None of the connections are exposed to direct heat or weathering (rusting) or deformation under fire conditions. • There are no gutters or penetrations to collect vegetative debris or entry for embers. • The water source and equipment are fully protected from fire. • Windows are rated at BAL40 or FZ. • Being a modular construction, it can be disassembled and relocated at a later time. Extensions are easily arranged. In addition to resisting damage that might be caused by bushfire, Mr Faigen said his Igneous Building System is equally suitable for use in precincts that are subject to cyclones, flooding and hail. The modular design allows clients to create a wide variety of layouts and building sizes. Colours and roof forms can be tailored to suit individual needs or corporate requirements. Community living complexes or country shire mixed-use developments, or even large country estates can utilise this accommodation in any disaster-prone zone. A prototype of the Igneous Building System is now being developed using a local manufacturer and local tradesmen. Any builders or their clients wishing to explore the opportunity of having their project designed using the Igneous Building System on their site are invited to make contact with Phil Faigen directly by phoning 0413 757 885. Visit www.igneous.net.au for more information.

18 REPORTS branches SUMMER 2017-18

New chairman elected in South West Master Builders’ South West members elected Sam Karamfiles, of Karamfiles Builders, as the branch’s new chairman at the region’s 2017 AGM. Mr Karamfiles said he was honoured to take on the role and the organisation’s achievements were a testament to the efforts of the branch committee. “I look forward to strengthening the presence of the Master Builders South West as well as working with a newly-elected team of committee members,” he said.

Sam Karamfiles is the new chairman of Master Builders’ South West Branch.

David Hunt was elected vice chairman, Shaun Palfrey as secretary and Rick Ruhen as treasurer. Regional manager, Geoff Bosustow, said he was very pleased with the outcome of the election, which saw some new faces enter the mix of residential and commercial builders and suppliers. “This committee has good representation from the industry and I look forward to working with them,” he said. Former chairman, John Buckingham, will remain an active committee member.

Mr Karamfiles welcomed the fact the next generation of builders was represented on the committee, saying it was a positive step forward for the industry.

Geraldton’s positive outlook

At the Economic Prospects Forum (l-r): David Nairn, Alan Langford, Trevor Lake, Lisa Kazalac and Michael McLean.

Master Builders and REIWA recently met members and industry partners at the Association’s Geraldton Branch for a successful ‘Economic Prospects Forum’ presenting a positive picture of the region’s immediate future.

Bankwest chief economist, Alan Langford, gave a regional and national economic update. He said that although farmers were desperate for good rains, and that was not looking good, the Midwest had a diversified list of industries needing time and effort.

REIWA executive manager, advocacy and policy, Lisa Kazalac, spoke on the diverse economy, providing aggregated figures for the Midwest and Geraldton-Greenough regions, including information on the rental and sales market, larger hectare properties and average selling days on the market.

Trevor Lake, RSM director of business advisory, spoke on cashflow, tax laws and planning in a difficult environment, saying opportunities for young people remain. Even through a downturn, there were many affordable options for first homebuyers. David Nairn, Keystart manager for business

analysis, covered housing affordability, trends and challenges. Master Builders’ regional manager, Di Gilleland, says that given the success and positive feedback from those in attendance, the event will be repeated in 2018.

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20 REPORTS branches SUMMER 2017-18

Albany HQ has it all

Master Builders’ Albany headquarters offers many opportunities.

Consumers and contractors looking for inspiration for new homes or renovations need go no further than the showroom at Master Builders’ business, training and function centre in Albany. Match making comes naturally to the people who run Master Builders’ impressive display centre. It features the latest building products, such as laminates, curtains, cladding, lighting, underfloor heating, fire-resistant glass and kitchen designs, and links to builders and tradies who really understands the region. Association regional manager, Linda Gibbs, says Master Builders has a rich history in the Great Southern. “Our members are reputable, hard-working people who’ve grown up and started their businesses in the region,” she says. “In addition to providing a supportive network for the Great Southern’s best builders, we’ve created a hub of information, products and services to help the public access everything they need for their building projects. Quite a

few complementary local businesses, including an engineer and certifier, also have offices in our building.” Visitors to Master Builders’ showroom are given bags to take their brochures and product samples home in. “The products on display change regularly, ensuring that visitors can always get a good feel for the latest trends and technologies,” Ms Gibbs said. “We even invite people to cook in our working display kitchens, so they can get a real feel for the appliances.” The associated training and function centre also is a popular venue for events. Corporate functions, product launches, community meetings and birthdays are just some of the special occasions the Albany team caters for. Clients who use the rooms, which can accommodate up to 100 guests, for business meetings or conferences can hire a range of topof-the-line equipment including data projectors, electronic whiteboards and wi-fi access.

The Master Builders centre also has office space available. “For anyone starting a new business in the Great Southern, leasing an office in our shared environment is a great way to enjoy the benefits of a large buzzing office, with minimal overhead costs,” Ms Gibbs said. “Master Builders hopes this initiative will attract new businesses to the region and increase local employment. “I can work with clients to tailor leasing packages to suit their individual needs and budgets. It’s a great way for start-ups to test local markets and for more established businesses to expand without increasing their overheads dramatically.” Master Builders Albany business, training and function centre, at 30 Graham Street, is open Monday to Friday, 9.00 am to 4.00 pm. Phone: 9841 6232, email: Albany.reception@ mbawa.com. For more information, contact Linda Gibbs on 0412 376 661 or email linda@mbawa.com.

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22 REPORTS branches SUMMER 2017-18

Teed up to win Overlooking Roebuck Bay, the Broome Golf Club is the perfect location for a game of golf at the end of a working week. Once a year, its spell draws in the local building industry for the Master Builders-McKeno Blocks and Pavers Golf Day. This year’s event in September attracted 60 players and with its proximity to R U OK day, was a timely reminder of the need to maintain mental health in a busy and demanding work environment. Master Builders’ regional manager, Di Gilleland, reports that the banter on the golf course was up to the usual standard. “This year was no exception,” she said. “The laughs and jokes among players makes for great camaraderie.”

Broome golfers Sean Jenkinson, Brendan Nauta, Tony Cooling and Phil Connolly.

Winners on the day were Cody Mayo, Tim Hunter, Matt Smith and Donald Smith and runners up, Lindsey McCoy, Lachlan Harris and Tim Bycroft. Broome Builders’ Rhys Egan, Billy Lockyer and Seth Love earned the dubious NAGA award.

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23 training fund ADVERTORIAL 1 S /UOMCMT EORB E2 R0 1270- 1 8 AUGUST 7

CONSTRUCTION TRAINING FUND CASH INCENTIVES FOR EMPLOYERS The Construction Training Fund can reduce the costs of employing apprentices in WA’s building and construction industry for MBA members. The Training Fund has a range of incentives for eligible employers of apprentices in construction trades, with up to $19,000 in cash 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, the Training Fund can provide 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. The Training Fund is also providing an extra bonus of up to $2,000 to eligible employers for the employment of women in non-traditional trades. Additional supplements for employment of indigenous and regional trainees/ apprentices bring the maximum grant available to a total of $19,000. The grants are available to employers of trainees/apprentices registered with the Department of Training & Workforce Development on or

after 1 July 2015. Direct indenture employers receive the grant in three equal instalments. 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. MBA members will also receive the benefits of the grant from the Training Fund 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 bcitf.org or call 9244 0100 for more information about the Construction Training Fund’s apprenticeship grants and other support programs for the construction industry. It’s your training fund.

Apprentices bring leading edge skills to your business and they help strengthen the building and construction workforce. That’s why the Construction Training Fund provides up to $19,000 in grants for you to reduce the cost of training each apprentice you employ. For details on eligibility, visit www.bcitf.org or call 9244 0100.

Receive up to $19,000 to help train an apprentice.

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24 REPORTS branches SUMMER 2017-18

No draggin’ the feet here

Broome Builders’ team, just pipped for first place in the annual Dragon Boat Regatta.

The Broome Rotary Club held its annual Dragon Boat Regatta on Town Beach in September with a big crowd supporting the 24 competing teams. Master Builder member Broome Builders invited the Association’s regional manager, Di Gilleland, to join the crew as ‘drummer’, alternating with the company’s office manager, Ashlea Thompson, as the races progressed. “The girls must have had the knack or was it the rowers?” Ms Gilleland speculated. “Whatever the reason, it was a good outcome. Broome Builders finished a close second to St Marys College with Broome Surf Lifesaving Club third.”

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26 AWARDS National SUMMER 2017-18

Congratulations To our award winning home builders from this year’s national awards

NATIONAL RESIDENTIAL MASTER BUILDER OF THE YEAR

Spadaccini Homes

NATIONAL PROJECT HOME – $500,000 TO $1 MILLION

Element Builders Pty Ltd

NATIONAL LUXURY PROJECT HOME – OVER $2 MILLION

Spadaccini Homes

National AWARDS 27 S U M M E R 2 0 1 7-1 8

Congratulations To our award winning construction builders from this year’s national awards

NATIONAL SPECIALIST CONTRACTOR OF THE YEAR

Commercial Aquatics Australia

NATIONAL COMMERCIAL/INDUSTRIAL CONSTRUCTION AWARD – UNDER $5 MILLION

Ultimo Design & Construction

NATIONAL COMMERCIAL/INDUSTRIAL CONSTRUCTION AWARD – $20 MILLION TO $50 MILLION

PACT Construction Pty Ltd

28 AWARDS Geraldton Midwest Awards SUMMER 2017-18

Midwest building royalty celebrate The Midwest region’s economic downturn didn’t deter talented local contractors from creating some first-class projects for their clients over the past year with their quality workmanship showcased at the annual Master Builders-Bankwest Geraldton Midwest Building Excellence Awards at the Geraldton Grammar School in October. Regional judges, Charlie Baggetta and Kevin Sale, travelled as far afield as Jurien, Dongara, Port Denison, Geraldton, Horrocks, Shark Bay and Yalgoo to determine which entrants would win the prestigious awards on offer. An impressive mix of established builders and young guns in the early stages of their careers took out this year’s top honours.

Michelle Giudice of Geraldton Homes received the trophy for Best Country Home from Master Builders’ housing director, Jason Robertson (left) and Gary Smith of award sponsor, Truecore.

Geraldton Homes, managed by former National Young Builder of the Year, Serena Giudice, received the ultimate accolade, the Best Country Home. The company, which previously traded as Kevin Giudice & Co was founded by Ms Giudice’s late father, Kevin, a long-time Master Builder member and Geraldton Branch chairman. Under his leadership the company was a six-time winner of the region’s Best Country Home. Impeccable workmanship and quality customer service continue to define the business with Ms Giudice now at the helm. Mr Giudice’s legacy also lives on in the Kevin Giudice Apprentice of the Year Award, which went to Bailey Pratt, employed by Skill Hire and host employer, Connolly Creative Building Co. The Encouragement Award went to another Skill Hire apprentice, carpenter, Lewis Scott (host employer Geraldton Building Services & Cabinets).

Owen Altham of Firm Construction addresses the audience after receiving the Best Commercial Project award.

New builder, McAullay Builders, made its presence felt by winning the Residential Alterations and Additions $100,000 to $200,000 category. The company’s cutting-edge carpentry skills also saw it take home the Best Carpentry award. Firm Construction’s impressive refurbishment and new building work at Geraldton’s Opal Aged Care Facility saw it awarded the Best Commercial Project accolade. Other winners on the night included Crothers Construction (Builder of the Year) and Steele Campbell Building which again took the Brian Neil Award, named after the highly respected Geraldton branch founding member and Master Builders’ life member. The award reflects the late Mr Neil’s strong ethos of quality building.

Bailey Pratt won the Kevin Giudice Apprentice of the Year Award.

A list of all the award-winning builders at this year’s awards is available at www.mbawa.com/awards-winners. Geraldton Homes’ Best Country Home will compete with other regional winners from the Kimberley-Pilbara, South West, Great Southern and GoldfieldsEsperance regions at Master Builders Bankwest Housing Excellence Awards in Perth in February. Aaron Campbell proudly holds the Brian Neil perpetual trophy which his firm, Steele Campbell Building, holds for the second successive year. With him are Jason Robertson and Master Builders’ life member, Hub Mainwaring.

Awards night master of ceremonies, Dean Calver, arrives with a right royal fanfare.

Purple and gold appropriately dominated the regal-themed Building Excellence Awards.

Geraldton Midwest Awards AWARDS 29 S U M M E R 2 0 1 7-1 8

Midwest home best by a country mile

Ageing gracefully an art form

The award-winning Tarcoola Beach home built by Geraldton Homes.

Opal Aged Care Facility in Geraldton, Firm Construction’s award-winning project.

Geraldton Homes’ “Building with Excellence” slogan proves there really is truth in advertising.

Firm Construction has ensured the residents at Geraldton’s Opal Aged Care Facility will enjoy their twilight years with real star power.

The award-winning building company, which has highly regarded registered supervisor Serena Giudice at its helm, won this year’s hotly contested Best Country Home Award for the Geraldton Midwest region. The meticulously built Tarcoola Beach residence received several other accolades, including Best Contract Home $400,000 to $450,000, Excellence in Cabinet Making and Excellence in Painting. Stone cladding and a cleverly chosen paint palette combined to give the home plenty of street appeal. The designer kitchen has been outfitted with a scullery-pantry and overlooks a tranquil alfresco area and swimming pool. Double showerheads, his-and-her vanities and carefully laid ceramic tiles are some of the standout features in the bathrooms. “Elegant, sophisticated, tasteful,” was how Geraldton Homes summed up the multi-award-winning project – and the judges agreed.

The company’s $10.5 million project took out the Bankwest Best Commercial/Industrial Building title at the Geraldton Midwest Building Excellence Awards. Built in two stages, the work comprised a state-of-the-art aged care establishment and the refurbishment of existing facilities to bring them in line with the new building. The centrally-located nursing home prides itself on helping people maintain the highest possible quality of life, and Firm Construction’s meticulous attention to detail worked in tandem with Opal’s ethos to achieve this. The award judges were impressed with the high-quality workmanship that features throughout both the custom-built and renovated components of the project which also won the Best Commercial Alterations and Additions over $6.5 million category.

30 AWARDS Geraldton Midwest Awards SUMMER 2017-18

Awards honours list Best Country Home Sponsor: Truecore Geraldton Homes Glendinning Rd Tarcoola Beach Best Commercial/Industrial Building Sponsor: Bankwest Firm Construction Milford St Geraldton Best Customer Service - Builder Sponsor: Bankwest Geraldton Building Services & Cabinets Supervisor of the Year Sponsor: Patience Sandland Karl Proudlove Plunkett Homes Kevin Giudice Apprentice of the Year Sponsor: Mitchell & Brown and Central Regional TAFE Bailey Pratt Apprentice Encouragement Award Sponsor: Ray White Lewis Scott Employer-Training of the Year Geraldton Building Services & Cabinets Builder of the Year Sponsor: Keystart Crothers Construction Contract Homes Under $250,000 Plunkett Homes Cobia St Sunset Beach Contract Homes $250,000 - $300,000 Plunkett Homes Stormking Loop Wandina Contract Homes $300,000 - $350,000 Steele Campbell Building Hester St Drummond Cove Contract Homes $350,000 - $400,000 Plunkett Homes Tartan Pl Wandina Contract Homes $400,000 - $450,000 Geraldton Homes Glendinning Rd Tarcoola Beach Contract Homes $450,000 - $500,000 Plunkett Homes Nichols St Beresford Contract Homes $500,000 - $650,000 WA Country Builders Hilltop Loop Wokarena Heights Buller Contract Homes $650,000 - $850,000 Steele Campbell Building Chapman Rd Beresford

Residential Alterations and Additions $100,000 - $200,000 McAullay Builders Roding Ct Deepdale Multi-Residential Developments Under $1 million Geraldton Building Services & Cabinets Gertrude St Family Units Geraldton Multi-Residential Developments $2.5 million - $6.5 million Crothers Construction Pty Ltd NRAS Housing Geraldton Commercial/Industrial Building Under $1 million Geraldton Building Services & Cabinets Dongara Allied Health Centre Dongara Commercial/Industrial Building $1 million - $2.5 million Coral Coast Homes & Construction Yalgoo Police Station Yalgoo Commercial Alterations, Additions and Restorations Under $1 million Crothers Construction Geraldton Crematorium Geraldton Commercial Alterations, Additions and Restorations $1 million - $2.5 million Crothers Construction TAFE Student Hub Geraldton Commercial Alterations, Additions and Restorations Over $6.5 million Firm Construction Opal Aged Care Facility Geraldton Excellence in Carpentry (External/Internal) Sponsor: Jackson McDonald McAullay Builders Volute St Sunset Beach Silver Trowel Sponsor: Midland Brick J & K Hutchcraft Plunkett Homes Nicholas St Beresford Excellence in Cabinet Making Sponsor: RSM Speedy Cabinets Geraldton Homes Glendenning Rd Tarcoola Beach Excellence in Ceilings Sponsor: MBA Insurance Services Patten Ceilings WA Country Builders Hilltop Loop Wokarena Heights Buller

Excellence in Painting Sponsor: Valspar New Millennium Painting Services Geraldton Homes Glendenning Rd Tarcoola Beach Excellence in Wall and Floor Tiling Sponsor: Geraldton Ceramic Centre R & A Francis Tiling Coral Coast Homes & Construction Holland St School Hydrotherapy Centre Geraldton Best Appointed Kitchen Sponsor: Cbus Plunkett Homes Tartan Pl Wandina Best Appointed Bathroom Sponsor: Geraldton Ceramic Centre Plunkett Homes Tartan Pl Wandina Excellence in Metal Cladding/Roofing Sponsor: Combined Metal Industries Coral Coast Homes & Construction Yalgoo Police Station Yalgoo Excellence in Plastering Sponsor: Swan Cement Fraser Gaudio Total Plastering Crothers Construction Geraldton Crematorium Geraldton Excellence in Brick and Block Paving Sponsor: Midland Brick Geraldton Landscaping Plunkett Homes Tartan Pl Wandina Excellence in Glazing Sponsor: RSM Parker Aluminum Windows Coral Coast Homes & Construction Holland Street School Hydrotherapy Centre Geraldton Excellence in Innovative Cladding Sponsor: Fivestar Business Solutions McAullay Builders Volute St Sunset Beach Innovative Use of Building Materials Sponsor: Geraldton Newspapers Port Denison Builders Seaview Ct Port Denison Excellence in Concreting Sponsor: MBA Insurance Services Keith Gregory WA Country Builders Sixth St Wonthella

Geraldton Midwest Awards AWARDS 31 S U M M E R 2 0 1 7-1 8

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42 UPDATES building business SUMMER 2017-18

High performing contractors: Building Management and Works wants you importance placed on engaging contractors with a strong track record of performance. Contractors can expect that most significant BMW request documents will include a ‘past performance’ selection criterion, which will form part of BMW’s value for money assessment. Contractors having a track record of high performance will have a competitive advantage and will be preferred (relatively-speaking) to contractors that have not performed as well.

The BMW-managed redevelopment of Willetton Senior High School, completed in two stages by Cockram Construction and PACT Construction and designed by HASSELL, won the prestigious George Temple Poole award at this year’s WA Architecture Awards.

The Department of Finance’s Building Management and Works (BMW) has always endeavoured to engage contractors with a demonstrated track record of delivering superior outcomes, and is committed to the active management of the performance of its contractors. Actively managing performance, and responding to both good and bad performance, improves the outcomes BMW delivers for government, client agencies and the broader community. Performance management assists contractors by identifying where they are performing well, and where there are opportunities for improvement. BMW tailors its approach to performance management to suit the individual panel or framework through which the contract is tendered. Where a contractor is engaged to undertake a construction contract over $500,000 which extends for more than six months, the contractor will be subject to BMW’s Contractor Performance Appraisal Framework (CPAF). What contractors can expect When a contractor is subject to the CPAF, a written report on performance will be produced by BMW’s project manager at least once throughout the duration of the contract.

While this report is important, in many ways the most valuable component of the process is the conversations the report generates regarding expectations, performance, identified strengths and matters requiring attention. The report, which captures both subjective and objective information on performance, will assess how the contractor has performed against various criteria, such as cost, time and quality management. Once the report is prepared, contractors will be provided with the opportunity to comment on it. In BMW’s experience, the overwhelming majority of these reports are accepted by contractors as representing a valid assessment of performance.

Dealing with significant sub-standard performance The majority of sub-standard performance issues are appropriately dealt with in accordance with the contract, panel or prequalification arrangement. However, in some circumstances the nature of sub-standard performance may be significantly detrimental to BMW operations. In these instances, BMW may need to take more immediate action to clearly signal that the performance is not acceptable, and to encourage a supplier to improve performance immediately. To deal with this, BMW has expanded the scope of the Contractor Sanction Scheme it put in place in October 2015, in support of the introduction of the Government Building Training Policy.

If a contractor completes a BMW project subject to the CPAF, and is not provided with a performance report for comment, the contractor can contact the relevant BMW project manager and request a report be prepared.

This has been rebadged as the Supplier Demerit Scheme and under the enhanced scheme, any failure by a contractor to meet a fundamental BMW requirement may lead to the contractor being allocated one or more demerit points. Should a contractor accumulate three or demerit points over the course of three years, a sanction will be applied.

Recognising high performing contractors BMW has long considered performance reports as part of decisions made regarding the Builders Prequalification Scheme, and individual contract award decisions. From early 2018, BMW will enhance its tender evaluation processes to further reinforce the

Want to know more? Information on BMW’s approach to contractor performance management can be found on the Department’s website at www.finance. wa.gov.au/cms/Building_Management_and_ Works/Contractor_information/Contractor_ Information.aspx.

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44 UPDATES building business SUMMER 2017-18

Help for small businesses with NBN connection issues He took leave to be at home on the first installation date but no one came to install the service.

The Telecommunications Industry Ombudsman can help small businesses and consumers find solutions to their telco issues.

The Telecommunications Industry Ombudsman is a free and independent dispute resolution service for small businesses and residential consumers who have unresolved complaints about their phone or internet services. Services include dealing with individual and systemic complaints, promoting fair and effective resolution of complaints and providing information and analysis to community, government and the telecommunications industry. Getting connected to the NBN is an issue the Telecommunications Industry Ombudsman looks at. Geraldton builder Jim Cain (name changed to protect privacy) tried for two months to have an NBN landline and internet service connected at his home.

His landline and internet provider told him there was an error in their system and the booking had not been put through. Jim was given another date for the installation to proceed but the installer once again failed to turn up. He was then given a third date for the installation but by this time Jim lost confidence that the provider could fix the problem. He contacted the Telecommunications Industry Ombudsman for help. After hearing Jimâ&#x20AC;&#x2122;s story, the Ombudsman referred the complaint to his provider advising they had 10 business days to contact Jim with a resolution. After five weeks Jim returned to the Ombudsman because he and his provider had failed to reach a resolution and his services still were not connected. He also said that his existing broadband service had been disconnected and he had accrued approximately $300 in mobile excess data charges due to the connection delay. In addition, Jim said that there had been 13 connection orders, which were either rejected or cancelled for some reason.

The Ombudsman sent out a conciliation notice to Jimâ&#x20AC;&#x2122;s provider. The notice set out the complaint and the issues raised in the complaint, including whether Jim was entitled to damages under the Customer Service Guarantee (CSG) standard because of the delay in the connection of the landline service. The Ombudsman suggested that the provider review its system notes about the orders and investigate why the orders were being rejected or cancelled. After receiving the conciliation notice the provider investigated further and got to the bottom of the technical and operational issues that prevented the orders from being actioned. The provider told Jim that the line to his house had to be reconfigured. The provider calculated eligibility for compensation under the CSG standard and offered Jim an amount in excess of $3700. Jim accepted the resolution offered and the Telecommunications Industry Ombudsman closed the case. If you are a small business owner or residential consumer like Jim you should firstly aim to resolve your complaint with your phone or internet provider. If the complaint remains unresolved visit the Telecommunications Industry Ombudsman at www.tio.com.au or call 1800 062 058.

building business UPDATES 45 S U M M E R 2 0 1 7-1 8

GST and retention and bank guarantees While there have been no recent changes in the area of GST implications for security arrangements such as retention and bank guarantees, it is worth re-visiting as we have had a couple of queries on this.

or the part of input tax credit that relates to the retention amount until the amount is actually received or provided, or a document notifying an obligation to pay the retention amount is issued in relation to that amount following expiry of the defects liability period.

During the installation, the subcontractor makes a progress claim of $50,000 based on an assessment of work to date. The builder agrees with the figure, but contractually needs to retain five per cent of the $300,000 against satisfactory completion.

The forms of guarantee that are most common are retentions and bank guarantees. The bank guarantee or security option requires the subcontractors to have equity in property that they are prepared to provide to their banks so that a security amount, typically equal to five per cent of the contract sum, is held as security in two equal parts.

“For example, if a document is issued after the end of a defects liability period asking for payment of part or all of a retention amount, the GST payable on the retention amount is attributable to the tax period in which the document is issued.

The builder would retain five per cent of the first claim. The tax invoice issued by the subcontractor would show this:

If you account for GST on a cash basis, you normally will need to pay GST when the cash payments are received, so the GST will be paid on the retention amount when it’s received in your bank account.

“However, if a payment of part or all of the retention amount is received before a document notifying an obligation to pay the retention amount is issued, the GST on the retention amount is attributable to the tax period in which the amount is received, but only to the extent of the amount received.”

Accounting on an accruals basis normally means that you must remit all of GST on the total project at the time any payment is received. But rest easy, because there are a couple of special rules that affect progress payments and retention amounts. The Tax Commissioner has outlined his view as follows: “The effect of the particular attribution rule is to defer attribution of the part of GST payable

So, in practice, it should be a matter of “follow the money”. When you invoice to get paid an amount, one-eleventh of that total amount normally would be GST in these situations. Example A builder may engage a subcontractor to supply goods and services for a total of $300,000.

Invoice Value

$50 000

Less Retention (5%)

$2 500

Net

$47 500

Plus GST

$4 750

Total

$52 250

The subcontractor would remit GST of $4750 (liability arises at the earlier of the issuing of the invoice or receipt of any of the payment). The builder would (presumably) be entitled to an input tax credit of $4750. GST liability on some or all of the retention amount would arise when it is invoiced at completion of the contract. This article was prepared by Tony Ince, RSM Australia Pty Ltd senior analyst, indirect tax. Contact 9261 9417 or tony.ince@rsm.com.au.

46 UPDATES health SUMMER 2017-18

Feeling blue this Christmas? Christmas is supposed to be a time of cheer, togetherness, good food, drinks and gifts. But for a lot of us that isn’t the reality at all.

see how you would feel like that,” “Sorry to hear you feel like that” and “Let’s talk about it another time.” Then escape.

In fact, it is the toughest time of year for many people, particularly those experiencing: • Financial problems. • Separation or divorce. • Child custody or access issues. • Grief. • Depression, anxiety or other mental health problems. • Isolation or loneliness.

Set limits on money Christmas shouldn’t be all about presents. It’s about doing the things we enjoy with the people we care about. Rein in the stress and cost by setting a limit you will spend on each person and/or plan a ‘Secret Santa’. You can also plan to do simple things that don’t cost a lot of money, like a barbecue by the river.

MATES in Construction has a few tips to help get you through the challenging holiday season. Forget perfection Don’t expect everything to be perfect just because it’s Christmas. Despite the expectation of ‘merriness’ and ‘togetherness’, it is really just another day. All the added stress and pressure that’s applied to us at this time of year means celebrations rarely go to plan. Make peace with being less than perfect. Learn to say no All too often, we spend Christmas trying to please others and have a terrible time ourselves as a result. Plan to do just one or two things, including something that you and those closest to you enjoy most. Remember, it’s okay to say “No” and sit some events out. Scheduling visits so they aren’t all packed into the one day also might help. Avoid family conflict Plan an exit strategy for any family gatherings at which you are likely to get into conflict, and try to avoid touchy subjects. If conflict arises, have neutral responses ready, like: “I can

Don’t binge on alcohol It’s easy to drown out our stress, anxiety and depression with alcohol, but alcohol is a depressant. In the end, it makes us feel worse. It can also magnify problems we are having with others, lower our inhibitions and lead to full-scale conflicts and other negative situations we regret later. Drink plenty of water, drink lowstrength alcohol, set a limit on how much you will drink, and have an escape plan ready for when you have reached that limit. Visit a friend who’s alone or struggling, or even volunteer Start a tradition of doing something for people who are less fortunate. Taking the focus away from ourselves and redirecting it to those who are doing it really tough can make us more grateful for what we have. It can also help to lessen our own depression. If alone or doing it tough, plan ahead: Even if you don’t feel like celebrating, don’t isolate yourself. Plan ahead to spend the day with someone else who is in the same boat as you over Christmas or drop into a community Christmas event in your area. If you don’t have anyone you can spend time with, plan to look after yourself on the day and embrace the

solitude. Treat yourself by doing something you really enjoy. Get plenty of rest, eat your favourite food, exercise to release your ‘feel good’ endorphins and chill out with some uplifting movies, music, a spot of fishing or a book. If you are grieving Christmas can be a painful reminder of a loss, whether it’s recent or happened some time ago. Many people feel a range of conflicting emotions like sadness, enjoyment and guilt. It’s okay to take time out and allow yourself to feel. It’s also okay to relax and enjoy yourself (it doesn’t mean you love or miss the person you lost any less). No matter how you feel, try to surround yourself with people who can support you and share your memories. Other things that may be comforting are finding a quiet place to remember the person, writing them a letter and/or going to places or doing things that you used to do together. The MATES in Construction Help and Referrals line, 1300 642 111, is available 24/7 throughout the Christmas and New Year holiday period including all the public holidays. The helpline is FREE for all building and construction workers and their immediate families.

health UPDATES 47 S U M M E R 2 0 1 7-1 8

Role modelling in the workplace

Be a SunSmart role model when working outdoors. Take care to wear PPE and apply sunscreen, and encourage co-workers to do the same.

Many workplaces have official policies in place that cover sun protection when working outdoors. However, they often are undermined by the unofficial behaviours on worksites. For example, employers supply personal protective equipment and sunscreen, but some workers choose not to use either. Depending on the worker, and the level of respect they have in the company, this can create a culture that inadvertently influences how others act. It might even encourage people to stop being proactive about their own health and safety. ‘Role modelling’ in the workplace is something many of us don’t give much thought to, but it can have a major impact on the wellbeing and safety of staff. Some might think that working without a shirt or hat is not a big deal, but it is. UV exposure is the primary cause of skin cancer in Australia. A basic lack of understanding about the importance of enforcing sun protection policies in the workplace has allowed this dangerous behaviour to continue. Skin cancer kills more than 2000 people in Australia each year. Outdoor workers are at greater risk because their exposure to UV is five to 10 times higher than indoor workers.

When it comes to safety, we tend to focus on hazards that pose an immediate danger to someone’s health or wellbeing, like working at heights. But overexposure to UV can be hazardous in the long term, in the same way that asbestos exposure is. Asking staff to wear a hat and long-sleeved shirt is not a business trying to exert its authority over employees by forcing them to toe the line. Rather, the organisation is fulfilling its occupational health and safety obligations to employees. Not following these safety measures does a huge disservice. Some people think that skin cancer isn’t a real cancer and can just be cut out. This grossly underestimates the seriousness of this type of cancer. Many skin cancers require surgery and additional treatments like chemotherapy, and can leave disfiguring scars on prominent places of the body such as the face, ears or neck. This is why it is vital to protect yourself from UV exposure by using good sun protection measures. It is equally important that you positively influence those around you by role modelling these proactive, responsible behaviours when it comes to sun safety. Next time you are at work, remember that by simply using sun protection each day, you are reducing your lifetime risk of skin cancer, and

showing others that you value safety in the workplace. This simple act could be enough to encourage your colleagues and co-workers to reconsider their choices and start viewing sun protection as the essential tool it is. For more information about why it’s important to be SunSmart, visit www.cancerwa.asn.au/ prevention/sunsmart.

48 UPDATES housing SUMMER 2017-18

Housing affordability: a national crisis? The following areas have been identified as the biggest barriers to building new homes: • Embedded land costs. • Poor planning and zoning. • Infrastructure/developer charges. • Land supply – specifically the inadequate supply of land by government.

Jason Robertson Master Builders’ housing director

Housing affordability continues to be the biggest issue facing the residential building and construction industry as a collective. In fact, it’s impinging on almost every Australian in some capacity. The latest report from the Committee for Economic Development of Australia (CEDA) suggested Australia's housing affordability crisis is likely to continue for another 40 years unless there are major changes to the market. It’s worth noting that some of the demand-side recommendations contained within CEDA’s report are counter to Master Builders’ current policy position. The potential for not correctly accounting for the legislative restrictions of the Commonwealth (such as a uniform land tax) is one of them. Further, it’s somewhat telling that changes to negative gearing did not make the list of official recommendations in the report’s summary. Plus, there is no direct recommendation in terms of the level of capital gains concessions. Rest assured, Master Builders continues to lobby and advocate on behalf of our members regarding myriad concerns about housing affordability. Successful lobbying efforts included the introduction of a stimulus boost to the First Home Owner Grant (FHOG) and an extension to Keystart’s lending criteria. More recently, we campaigned to retain the FHOG in the McGowan Government’s first State Budget, but our work goes beyond this. Master Builders recognises that each state and territory has different challenges. Some can be addressed at a national level, but it is vital we ensure our members and industry’s top priorities are addressed at home in WA.

However, economic data clearly casts WA’s housing challenge in a different light. In WA, construction costs have remained relatively constant, but house prices have risen significantly over the past number of years. Ultimately, this leaves land prices, taxes and regulation to account for the remaining difference in cost. This reflects the top priorities that Master Builders WA identified during a consultation process we undertook (with residential builders who are actively working in this sector) in order to identify impediments to building more houses. Since 2010, construction costs in WA have risen by about 2.3 per cent per year, but land prices on a greenfield development on the fringes have increased by almost four times. Perhaps we need to reframe our language around this hot-button issue from housing affordability to land affordability. Many residential builders have said the price of land is the biggest barrier to creating affordable housing. It also impacts on the valuations process. Granted, it is a complex issue, but something needs to be done to address the cost of land. Focusing on the construction costs of housing will no longer cut it. Master Builders commissioned an independent economic study by Cadence Economics called Unlocking Supply Volume 2: Consideration of Measures Aimed at Improving Housing Supply. It confirmed that hidden land costs and red tape are major factors in rising house prices and an increased cost of living. Government regulation means that new home buyers are now paying more for the land their houses sit on than they spend on building the house. The same constraints also have prevented the supply of new homes from keeping up with demand over the past decade, and caused house prices to be higher than necessary.

Since the cost of housing is rising quickly and incomes are relatively flat, more households are likely to find themselves under mortgage stress. Previous research by Master Builders has shown that the increased infrastructure investment, outlined in the Federal Budget, could result in an additional 93,000 new homes (nationally) by 2021. If this eventuates, it will go a long way to closing the gap, based on the Government’s estimated housing shortfall of 100,000 dwellings. Regulatory constraints at the state and local government levels must be removed in order to unlock this potential supply. At a national level, Master Builders lobbied extensively and secured several advocacy wins when the Assistant Minister to the Treasurer, Michael Sukkar, introduced the first tranche of new legislation aimed at assisting housing affordability challenges throughout Australia in September – primary inclusions being first home owner tax concessions through superannuation accounts, home deposits and tightening conditions, and cost raising for foreign investors, plus measures for retirees downsizing without tax penalisation. There’s no denying we’re faced with a vastly complex issue, but it is reassuring that the Treasury is listening to our industry’s recommendations and continuing to consult us on one of the defining issues of our time. As the peak industry body, Master Builders is maintaining its course and ensuring national and state-based politicians hear our collective voice.

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50 UPDATES industrial relations SUMMER 2017-18

Union on notice PUBLIC SERVANT STRESS The McGowan Government’s “Machinery of Government” reform agenda is well underway, but causing angst among state public servants, who traditionally do not like change. A media report highlighted the public servant stress levels in a union survey. The report indicated the union survey contained 200 questions. If correct, it’s little wonder that many of the people who took part were stressed given the time needed to complete it. Who else was doing their work?

VESTED INTEREST? A recent east coast airline sector dispute had an unusual twist. According to reports, evidence before the FWC revealed that a union official who was leading the dispute offered the employer a settlement option of dismissing the employees and engaging a labour hire contractor to supply staff to carry out the work. That would avoid the need to have a union EBA. Coincidentally, the same union official was allegedly a director of the labour hire contractor. Amazing!

Kim Richardson Master Builders’ construction director

The CFMEU has learnt some expensive lessons lately. Its construction divisions in NSW, the Northern Territory and Queensland have been hit with almost $2.6 million dollars in fines for engaging in blatant unlawful industrial action.

FWC MAKES A MEAL OF IT The FWC found a Queensland Aboriginal advisory group unfairly dismissed an employee, even though conceding the employment termination was justified. The employee was employed in a unique role and the employer could not place him in any other role. Why was it unfair dismissal? The employer had failed to look at any other employment options, even though the evidence showed none existed.

Adding to the union’s woes is the High Court rejecting an appeal by the WA CFMEU against an earlier decision, increasing fines against the union from $20,000 to $242,000, for unlawful industrial action on the Perth Airport expansion project. The High Court also ordered legal costs against the union.

ACADEMIC TELLS TRUTH An academic has seriously undermined the misinformation often put out by the ACTU on insecure employment, which claims casualisation of the national workforce is increasing, labour hire is increasing and sham subcontracting is ripping off workers and the ATO. He reports that the number of employees who’ve been in the same job longer for 10 years has increased since the 1980s, female employees in jobs over 10 years have doubled and labour hire employment has declined from 2001 to 2015. Kinda makes the ACTU look less than honest.

SHOW THE MONEY The Federal Court recently imposed eye-watering fines of almost $2.4 million on the NSW CFMEU for unlawful industrial action. The Federal Court over the past 18 months has been increasingly critical of the union’s blatant disregard for the rule of law with one Judge opining that the union saw itself above Federal Parliament. The union has failed to heed the warnings and can likely expect close to maximum penalties in future cases where found guilty. The union, of course, will blame everyone else for its misfortune as it always does.

FWC LOSING PLOT The Fair Work Commission called for submissions on whether it should factor in so-called budget standards in the 2018 National Wage Case and assess worker health lifestyles in setting the next Minimum National Wage Case. The FWC is not a lifestyle agency nor does it have a role in imposing obligations on employers to tell employees how to conduct their personal lives, or how to eat.

REQUIREMENT TO DO YOUR JOB IS DISCRIMINATORY? A former security guard has launched unfair dismissal action against his former employer on discrimination grounds. The guard claims that being relocated to a role where he was required to walk rounds every hour was too onerous. Why? His weight of 200kgs made walking a risk to his health. Seriously?

The CFMEU has forked over millions in union members’ funds to pay for fines and legal costs during the past three to four years on a national level. This is due to the union leadership’s overt approach of engaging in unlawful industrial activity and paying these massive fines simply as the cost of doing business. The Federal Court has increasingly been critical of the union leadership’s motivations and ramped up the level of fines imposed as a means to curb the union’s excess and total disregard for the rule of law. Federal Court judges have in their decisions accused the union of placing itself above the Federal Parliament and gone as far as to suggest that more severe penalty provisions need to be applied. It seems as if the warnings are falling on deaf ears, which means the union will likely face close to the maximum penalties in any future cases where it is found guilty. Curiously, most other unions do not operate this way or waste millions of dollars of union member funds in useless unlawful industrial action. Why the Federal Labor Opposition, ACTU, Greens and Senator Jacqui Lambie continue to defend the CFMEU as a champion of workers in the face of its track record is a mystery.

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52 UPDATES membership SUMMER 2017-18

Master Builders welcomes new members 3 Oceans Building Material Pty Ltd

Figliomeni Constructions

Nathan Lickfold

3 Oceans Property

Future Home Living Pty Ltd

NKH Constructions Pty Ltd

A&M Construction Group Pty Ltd

Glass Co Kimberley

Penguin Facades Pty Ltd

Acclaim Building & Renovations

Green Gateway Services

Raw Form Building

Aussiecraft Builders and Engineers

H S H Designs (Home Sweet Home Designs)

Riverina Co Pty Ltd

Bauen Projects WA

Hidley Homes

Roberts Residential Pty Ltd

Boldmove Homes

Hoseyâ&#x20AC;&#x2122;s Contracting

S D Fletcher Construction

BSS Building and Construction (WA) Pty Ltd

Idle Australia Pty Ltd

Sanus Building Solutions Pty Ltd

Colt Group Pty Ltd

Intu Property

Shelter WA

Constructive Pd

James Fisher

StepBeyond Business Advisors

Contrast Painting Perth Pty Ltd

JB Scaffolding Pty Ltd

Surtep Consulting

Davis Built

JBW Construction Pty Ltd

Todd the Tiler Pty Ltd

DJP Constructions Pty Ltd

Kings Rd Construction Pty Ltd

Unique Balustrading

DJP Developments Pty Ltd

Limitless Building & Developments

Wade Harry Builder Pty Ltd

DMP Homes

Lucian Currie Developers Pty Ltd

West Australian Fencing Contractors

Ellett Construction Services Pty Ltd

Maiolo Constructions

Westmark Constructions Pty Ltd

Encon Construction Pty Ltd

Milieu Construction

Wrinkly Tin & Cladding Company Pty Ltd

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membership UPDATES 53 S U M M E R 2 0 1 7-1 8

Paws for thought Perth-based, internationally renowned animal photographer, Alex Cearns, of Houndstooth Studio, inspired guests at Master Builders-Bankwest Women in Building and Construction End of Year Lunch with her presentation about following your passions, finding your purpose and giving back to your community.

Alex Cearns was guest speaker at the WinBaC End of Year Lunch.

Ms Cearns candidly shared tales from her professional journey with an enthralled audience. She’s gone from being a police officer to a self-taught photographer and philanthropist whose work has graced everything from coffee table books to Australia Post stamps and Peter Alexander pyjamas.

Self-belief is just one of the secrets to Ms Cearns success. Some laughed and said she’d never make it when she launched her business, Houndstooth Studio, in the midst of the GFC. “When you work for yourself, you get back what you put in. It’s the most challenging thing you’ll do, but the rewards are plentiful,” Ms Cearns said. “Don’t give up your 9 am-5 pm day job when establishing a new business and always have a Plan B.” Complimentary camel milk tastings from WA’s Good Earth Dairy and a linen tunic giveaway from local business Bedtonic were some of the other highlights that made for a memorable event.

Favourite footy son returns to Geraldton

At the Business Executive Dinner (l-r): Trevor Lake, Harry Taylor, Di Gilleland, Mark Harris, Jason Walker and Joseph Nyember.

Master Builders hosted a Business Executive Dinner in October with Geelong footballer, Harry Taylor, as the keynote after dinner speaker. Taylor grew up on a wheat and sheep farm near Port Gregory and was schooled in Northampton and at Geraldton Grammar. In 2004, he moved to Perth and studied physiotherapy at Curtin University. He played three seasons for East Fremantle before being drafted to Geelong Football Club in 2007. In an outstanding AFL career, he played in two winning premiership teams, and was selected as an All Australian player in 2010 and 2013.

In his speech to the Master Builders’ dinner Taylor focused on the creating of a high-performance culture, comparing his experiences at Geelong with business. He said that over the last decade, Geelong had enjoyed great stability in terms of its CEO, and with only three captains and two coaches. Over this same period, Geelong won 186 out of 242 games – more than any other team. Establishing a great culture had been the hallmark of Geelong’s success. He said the ingredients to creating and sustaining a good culture included: • Agreeing on mission and purpose. • Motivating the team.

• Establishing and adhering to values in relation to behavior. • Providing leadership to the team, especially when the going gets tough. • Encouraging honest feedback to reinforce values. • Developing processes that will lead to an action plan to achieve outcomes. • Building relationships within the team to bind the culture of success. “Harry’s presentation was an inspiration to all attendees,” says Master Builders’ director, Michael McLean, who was at the dinner. “As a local from the Midwest region, it was great to have him return home to share his journey and pass on some tips to Master Builder members.”

54 UPDATES personal pars SUMMER 2017-18

PERSONAL

PARS Kelvin Ryan has stepped down from his role as BGC Residential’s chief executive. He was at the helm of WA’s largest home builder for eight years. Congratulations to Holyoake, which won the Technology Innovator of the Year Award for its DRUMBEAT Quest video game for young people at the 2017 Australian Not-For-Profit Technology Awards, hosted by Connecting Up. Renae Harding is now heading up Jackson McDonald’s workplace relations and safety team, following Stephen Kemp’s resignation. MyLeave CEO John Youens is now a sexagenarian. Master Builders’ past president, John Doust’s wife, Jeanette, died in September. The Association passes on condolences to the Doust family and friends. Julian Little, the principal of Mobile Pest and Weed Control in Kalgoorlie, has retired after more than 22 years in the business. Julian has been a dedicated member of Master Builders’ Goldfields-Esperance Committee for most of that time. Former Trades and Labor Council Secretary and Commissioner of WA’s Occupational Health and Safety Tribunal, Stephanie Mayman, has been appointed Commissioner of WorkSafe WA. She takes over from George Allingame.

Congratulations to Scentre Group Design & Construction on receiving a Gold WorkSafe Plan from WorkSafe for its safety practices at Whitfords Shopping Centre. The Injury Council of WA has changed its name to Injury Matters. The organisation’s focus is on providing practical information to the community in the area of injury – from prevention to recovery. Its three flagship programs are Road Trauma Support WA, Stay on your Feet and Know Injury. The CEO is Sandy Lukjanowski. Condolences to Master Builders’ honorary member, Mal Dempsey, on the death of his wife, Alma. Tim Urquhart (formerly with LendLease) has been appointed director, properties, facilities and development at Curtin University. The Green Building Council of Australia has appointed Rod Fehring, the CEO of Frasers Property Australia, as its chairman. John Flecker, the CEO of Multiplex Australasia, and Kylie Rampa, CEO of LendLease, have been appointed deputy chairs. Almost 1500 buildings across Australia have been certified as ‘Green Star’, equating to about 38 per cent of the nation’s office space. Mr Fehring is keen to create more healthy buildings. Former IFAP CEO, Martin Ralph, is now working as a regional inspector of mines.

Congratulations to Commercial Aquatics Australia on winning five categories in this year’s SPASA (Swimming Pool and Spa Association) WA awards – the major one being for the new Crown Towers Hotel. Quality Dolphin Pools won the Pool of the Year award. Kam Hishmeh has resigned from Cooper & Oxley, as well as Master Builders’ Construction Council. Master Builders’ board member, Michael van Dongen, has left Jaxon after 14 years to establish his own building company, Encon Construction. Mark Kepplinger also has left Jaxon. Condolences to Darryl Lathwell (Perkins Builders) on the death of his mother in July. Murray Simcock has left Cook Building after a two-year stint. Congratulations to Dan and Amy Bell in Kalgoorlie on the birth of their first child, Maddie. Congratulations to Timothy Morgan, who was the recipient of the Master Builders’ prize awarded to the most outstanding third-year Curtin University student in the Bachelor of Applied Science (Construction Management and Economics) course.

Amanda Dawes has replaced Murray Thomas as the executive officer of the Master Painters and Decorators Association in WA. Mr Thomas continues as the executive director of the Master Plumbers and Gasfitters Association. Dr Ian Winter has resigned as executive director of AHURI after 14 years in the role. West Australian Mechanical Services has been operating under the ENGIE Services brand since August. Mike Ball is the general manager. Stephen Fray, the group president of MiTek International, has announced he will be leaving the business at the end of 2017. Congratulations to Paul Serra and his team at Averna Homes on celebrating 10 years in business. Mike Maloney has retired from LandCorp after more than 25 years’ distinguished service. Mr Maloney intends to spend more time at Mt Lawley Golf Course during his retirement. Patrick Warrand has been appointed managing director of Wespine Industries following the retirement of Ron Adams. Ray Sputore (Decmil and CCI board) has been appointed to the State Training Board. Mr Sputore is a past president of Master Builders WA and nationally.

personal pars UPDATES 55 S U M M E R 2 0 1 7-1 8

Farewell Carolyn

After 10 years at Osborne Park, John Holland has relocated to Kings Square 4 building in Perth. Julieanne Alroe, the CEO of Brisbane Airports Corporation, will be replacing Mark Birrell as chair of Infrastructure Australia. Master Builders marks the death of former BLF/CFMEU union organiser, Jim Reid, and extends sympathy to his family and friends. Mr Reid is remembered as a dedicated union official who represented his members in a responsible manner. He was also a decent bloke who developed a good relationship with most builders over the years. MATES in Construction has appointed Chris Lockwood from Cbus as its national CEO, based in Melbourne.

Carolyn Fitzgerald resigned from her position as Master Builders’ safety and training coordinator in October. Carolyn joined Master Builders WA in April, 2006 at reception. Master Builders’ director, Michael McLean, says she dedicatedly worked for more than 11 years as a part of different teams within the organisation. “Her efforts and contributions have been highly valued and appreciated,” he said.

Jess joins Master Builders Master Builders has welcomed new training manager, Jess Sethi, to the team. Before joining the Association, Jess worked in the training industry for about 15 years with not-for-profit and private training organisations. Her skills span a range of sectors, including resources, mining, construction, maritime, tourism, hospitality and business. She says she’s enjoying the challenge of being a part of the dynamic and amazing team at Master Builders.

Kirk Coningham Master Builders ACT executive director, Kirk Coningham, has resigned after one-and-a-half years in the role. Deputy executive director, Michael Hopkins, has been appointed acting executive director.

Melinda Cilento has been appointed national CEO of CEDA, the Committee for Economic Development of Australia. Ian Fitzgerald has retired as one of the training managers with ABBTF after seven years. Ian was previously employed with Skill Hire and was highly respected as a trainer within the building industry. After nearly three years in the role, Deidre Willmott has resigned as CEO of the Chamber of Commerce and Industry to focus on non-executive director appointments.

Katie takes the reigns After eight-and-a-half years at WA Business News and writing more than 4000 articles, Dan Wilkie has resigned to take up a position as editor-in-chief of a magazine focusing on Chinese business in WA and WA business in China. Katie McDonald has taken over Mr Wilkie’s role at WABN.

Bundle of joy Condolences to Master Builders’ past president, Howard Marson, on the death of his mother in September. Sandra Peterson is Master Builders’ new communications co-ordinator. She was the editor of The Sunday Times’ Home magazine for 12 years before joining the Master Builders’ team.

Congratulations to Master Builders’ Housing Councillor, Ray Kershaw and wife Jody, on the safe arrival in August of Charlie Vincent Kershaw, weighing seven pounds 15 ounces.

56 UPDATES personal pars SUMMER 2017-18

Master Builders’ graphic designer Adam Killian

PEN PORTRAIT:

ADAM KILLIAN Bar tender, brand developer and budding graphic designer sums up Adam Killian’s career to date. Adam joined Master Builders as in-house graphic designer eight months ago. Since then, he’s become an integral part of the team thanks to the fresh ideas he brings to the table.

What were you doing before joining Master Builders? I had been working in all different aspects of the liquor industry, from behind the bar at various well-known venues, to retail. I was even able to tie in my degree in Graphic Design and Creative Advertising with brand development and marketing for some large international craft beer companies, such as Sierra Nevada Brewing Co and Weihenstephan as their Australian representative. I was also doing some freelance graphic design work on the side.

When you’re not at Master Builders, what keeps you busy? If I find time to get away from the computer screen, I can generally be found skating or out with my friends.

Why did you move? The craft beer brand development role I had was only a temporary, part-time opportunity and I wanted the consistency and reliability of a permanent, full-time job. Increasing and improving my skill set was another goal and I felt that a reputable organisation like Master Builders would be a great fit.

What are some of the things you like best about working at Master Builders? Each day I’m given the opportunity to improve my design skills (improvement is a never-ending journey), while being surrounded by other people who are passionate about what they are doing. It creates a great working culture.

How long have you worked for Master Builders? I have now been with Master Builders for eight months. What’s on the horizon for you? I’ve been designing Master Builders 2017 Annual Report, along with a range of other branding and marketing collateral that accompanies our events, products, services and everything in between.

How do you feel you’ve settled into your role? Considering this is the first full-time job I’ve had, I was quite anxious to begin with. Having a great team and a supportive manager helped immensely and ensured I had a smooth transition during my settling-in period.

safety UPDATES 57 S U M M E R 2 0 1 7-1 8

Major safety reforms loom The McGowan Government has signaled major safety reforms on the way in 2019. This will see a merging of the Occupational Safety and Health Act and Mines Safety Inspection Act. Master Builders understands a working party already has been formed to pursue that objective. It is being headed up by Stephanie Mayman, chairperson of the Commission for Occupational Safety and Health. Ms Mayman is well placed for the role, having been directly involved in the creation of the OSH Act and the Federal Work Health and Safety Act. The McGowan Government also has announced an increase in penalties under the current OSH Act to align with those under the Federal WHS Act, but, for reasons not articulated, also has included a CPI loading on the financial penalties backdated to 2010. Master Builders has sought detail from the Minister for Commerce and Industrial Relations, Bill Johnston, on the changes and the lack of any consultation about them.

safety laws is to improve workplace safety. Industrial manslaughter as a penalty will not necessarily achieve that. Rather, it is a reaction based on revenge and retribution, which is symbolic.

law, which shows at times, that workplace fatalities are occasioned by employees/workers acting in a dangerous manner which has sadly resulted in their own death, or that of a fellow worker.

This view has been acknowledged by academics in the safety field. The reasons for this are many and complex. To start with, the thrust of the rhetoric surrounding the industrial manslaughter penalty goes to large corporations, which comprise the minority of employers in WA. The majority of employers are small to medium-sized businesses that do not have the economic resources to hire or consult with safety experts, nor have top-shelf safety systems. They contract those services in to varying degrees, based on what they can afford. The political debate on the issue totally ignores that reality. Who would want to be a small employer if they could potentially face 20 yearsâ&#x20AC;&#x2122; jail time for industrial manslaughter? This is not a message any State Government wants to send.

What those pressing industrial manslaughter will need to accept is that if this penalty were to be introduced into the WA safety laws, it also will need to equally apply to employees/ workers. Not to do so will make the legislation discriminatory and not based on equity.

A major consideration for Master Builders, and other groups, will be recent developments in other states, like Queensland and South Australia, involving the introduction of industrial manslaughter laws that carry a jail term of up to 20 years. Master Builders predicts a similar move will occur in 2019. This prediction is based on the WA Greens already tabling a Bill in the Legislative Council in early 2017 seeking to introduce industrial manslaughter under the WA Criminal Code (though there has been little appetite to pursue the matter at this time).

The UKâ&#x20AC;&#x2122;s safety laws shine a light on what the introduction of industrial manslaughter laws could mean to WA businesses. In the UK, larger corporations can, and do, engage top-flight lawyers to defend them in any serious prosecution bought by the Health and Safety Executive (the equivalent to WorkSafe WA). Small and medium-size employers cannot do that as they do not have the money and so plead guilty. Examples of this nature see small employers sent broke, employees lose their jobs and employers sometimes jailed. Is that justice?

The introduction of industrial manslaughter is a vexed issue. It is not as simple as some might like to argue. All agree the sole focus of work

The political debate on the matter also has been very narrow and focused solely on the employer being guilty. This ignores case

Other considerations also will need to be assessed. For example, the expansion of enforceable undertakings to provide the courts with a wide range of suitable options in any sentencing under the WA safety laws. This is not new or controversial, with some Australian academics proposing this suite of remedies in safety legislation. This factors in the wide variety of employers in the workplace and provides flexibility to match the penalty to the breach. That is, the intent is to improve safety as the primary outcome. Master Builders does not defend employer conduct that puts employees/workers at risk; all Master Builders argues for is for the legislative framework to provide the flexibility to match the penalty with the fault. Industrial manslaughter of itself as a penalty or limited to employers only is not the answer. Master Builders will be developing its position over the coming months on this very subjective issue.

58 UPDATES safety SUMMER 2017-18

Time to be pro-active about safety Master Builders is taking a pro-active approach to improve construction industry safety standards. WA’s leading building and construction industry stakeholder is launching new interactive, safety training courses to help workers in the residential and commercial sectors identify and avoid potential safety hazards on site. Master Builders’ construction director Kim Richardson said the courses couldn’t have been launched at a better time. “The WA Labor Government’s inquiry into WorkSafe likely foreshadows its moves to amend the OSH laws, increasing employer safety obligations in line with developments in other states and increasing employer penalties for breaches of safety laws,” Mr Richardson said. “Master Builders is ramping up safety training to meet these new challenges on a proactive basis.”

The Association commissioned Dr Susanne Bahn, of Tap Into Safety, to help create the interactive safety courses which will be deliverable on mobile devices.

“The problem is even more alarming when you factor into this equation, the number of people who sustain permanent, life-altering injuries,” Mr Richardson said.

“The course content has been modelled on a gamification approach to teach important safety messages in engaging and memorable ways,” Mr Richardson said.

“A major focus will be the fact that safety harnesses are ineffectual below three metres. There needs to be a situational awareness about what working at height means when you consider that Safe Work Australia data showed that out of the 242 fall fatalities across all industries nationally from 2006-16, 102 were caused from falls below three metres, of which 11 were below on metre.”

“Its delivery is highly relevant and engaging, unlike the ‘teacher tell’ abstract classroom approach which does not connect well with many construction workers. Being able to learn via a mobile device also reduces lost time spent travelling to training centres.”

Phone Master Builders on 9476 9800 for more information.

The first courses will focus on preventing falls from height and working safely at height. Mr Richardson said preventing falls from height and slips/trips was imperative. Tragically, there have been 31 WA worker fatalities as a result of work-related falls in the past 10 years.

Master Builders’ safety manager Mike Fitzgerald working on creating the new safety training course at a Psaros site in Scarborough.

technical UPDATES 59 S U M M E R 2 0 1 7-1 8

Getting fire wall penetrations right incorporation of untreated structural elements which exceed the size restrictions of Clause C2.7(a)(iii) and specification C1.1 of the NCC. Typical examples include timber/steel beams, purlins or timber battens which exceed 75mm x 50mm. A typical example of this situation is illustrated in Figure 1. Possible solution Where this occurs, the element must be treated such that the FRL of the fire wall is maintained. There are a number of passive fire protection methods available to meet this requirement. Typically, these systems involve a 300mm coatback using fire rated boards, fire rated fabric wraps, intumescent paint or vermiculite systems. However, in selecting the system the following should be noted:

Figure 1. Example of a fire wall showing roof battens with dimensions of less than 75mm x 50mm and an untreated steel beam penetrating the fire wall.

The National Construction Code 2016 (NCC) Volume 1 prescribes specific requirements and limitations for building elements – such as timber battens and structural beams – which penetrate fire walls and the walls bounding sole-occupancy units (SOUs). This article outlines the relevant NCC requirements, common issues and possible solutions. Although the requirements and solutions are similar for fire walls and walls bounding sole-occupancy units, there are some slight differences. Note that the NCC makes a clear distinction between a fire wall and walls bounding SOUs. Both are fire rated walls which achieve a Fire Resistance Level (FRL), however, each has different requirements in the NCC. Not all walls which are required to achieve an FRL are considered fire walls. To be considered a fire wall, the wall must comply with all NCC requirements associated with fire walls. Relevant requirements of the NCC Fire walls For fire walls, Clause 2.7 (a) (iii) of NCC Volume 1 requires that ‘a fire wall must be constructed in accordance with the following ...(iii) building elements, other than roof battens with dimensions of 75mm x 50mm or less or sarking material, must not pass through or cross the fire wall unless the required fire resisting performance of the fire wall is maintained.’

Bounding construction – i.e. walls bounding sole-occupancy units For bounding construction, in buildings of type A construction (similar for type B and C) Clause 3.1(c)(iii) of Specification C1.1 of NCC Volume 1, reads ‘an internal wall required to have an FRL with respect to integrity and insulation must extend to – (iii) … the underside of the non-combustible roof covering and, except for roof battens with dimensions of 75mm x 50mm or less or sarking-type material, must not be crossed by timber or other combustible building elements’. The requirement for bounding construction is worded slightly differently to fire walls, as it does not allow for timber elements greater than 75mm x 50mm to penetrate the wall, regardless of whether it is demonstrated that the fire resisting performance is maintained. Why the NCC specifies these requirements The reason the NCC places specific restrictions on the size and type of elements which can penetrate fire walls and bounding construction, is to limit excessive heat transfer through the penetrating element which could result in fire spreading to the opposite side of the wall. In addition, failure of the building element might cause the premature failure of the fire rated wall. Common issues A common issue identified during the construction phase of fire walls or walls bounding sole-occupancy units is the

• The system should have a test report from a registered testing authority which demonstrates that the required FRL is achieved and the intended use is identical with the tested prototype. If the system has not been tested for the intended application, then the system cannot be used unless it is addressed through a Performance Solution. • Typically, tested coatback systems are only applicable for building elements which are continuous through the wall system. This is to ensure that if the building element fails, it is supported on the non-fire affected side, and its collapse will not damage the wall. If the building element is discontinuous, i.e. does not pass through the wall and only supported on one side, then the situation might need to be assessed in detail by a structural engineer and fire safety engineer. • Advice should be sought from a structural engineer to confirm that failure of the building element will not impact the structural stability of the wall. • The wording in Specification C1.1 of the NCC for bounding construction does not allow for timber elements exceeding 75mm x 50mm, regardless of whether on not they are protected. This situation might need to be assessed by the Approval Authority and addressed through a Performance Solution. In some circumstances, a fire safety engineer in conjunction with a structural engineer might be able to assess the situation and either remove or reduce the passive protection requirements. This article was prepared by Richard Kathage, WA manager of Defire – Innovative fire safety, 9382 3844, 0422 382 972, www.defire.com.au.

60 UPDATES training SUMMER 2017-18

High risk licences under scrutiny defined occupational standards and provides a reliable signal to employers about the skills an individual has. Feedback from stakeholders identified that some improvements needed to be made to create better outcomes for the learners and industry.

Jess Sethi Master Builders’ training manager

Australia’s Vocational Education and Training system aims to provide people with skills that businesses and industries need in order to be highly productive and internationally competitive. Training packages that give students workready skills play a vital role in supporting the national VET system. The building and construction industry works hard to create training packages that give course participants the skills and knowledge required to perform effectively in the workplace. Training packages can be tailored to help students gain nationally recognised qualifications that are aligned to the Australian Qualifications Framework and industry recognised skill sets. A Review of Training Packages and Accredited Courses discussion paper was released in October 2014. The review was undertaken to validate that the national system of qualification is underpinned by industry-

Those in the industry know the Certificate of Professional Competence Training Packages cover qualifications supporting general and off-site construction, plumbing and other construction service sectors. More than 50 qualifications cover entry-level positions and apprenticeships through to managementlevel qualifications. High Risk Work Licence (HRWL) Units of Competency are a very important part of any training package. These units fit across 46 training packages and 345 qualifications. However, WA’s Training Accreditation Council produced a Strategic Audit Report in March 2016 related to the delivery of the units. The report highlighted the concerns, raised by the industry, relating to quality of training and assessment. The case for change related to HRWL Units of Competency was approved in February and a Technical Advisory Group was formed in April. Stakeholders – including registered training organisations, employers, trainers, assessors and peak industry bodies – provided feedback from May until mid-July. A desktop audit identified the HRWL Units in the training package were not complying with 2012 Standards for Training Packages. It is essential to ensure that the units’ content is consistent with Safe Work Australia’s national assessment instruments that are

used for licensing assessment in all Australian jurisdictions. As such, these units must provide clear and concise specifications for training and assessment by RTOs and industry. Delivering them in a consistent and high-quality manner creates a strong base for a better skilled workforce. A review of 11 HRWL Units of Competency in the CPC Construction, Plumbing and Services Training Package has been supported, validated and nominated as a priority by key stakeholders. The current project undertaken by Skills Service Organisation, Artibus Innovation, does not include a full review of the units of competency. The units will have essentially the same content and intent as the current units, but in a streamlined format. This project aims to redraft the 11 units to the 2012 Standards for Training Packages. Feedback from all stakeholders was undertaken to ensure quality outcomes. The Technical Advisory Group for the project has discussed requesting a full review of the high-risk licence legislation, the national assessment instruments and the units of competency to update them and bring them into alignment. The Case for Endorsement is scheduled to be submitted to the Australian Industry and Skills Committee. It makes a compelling case for approving the relevant changes in HRWL Units of Competency.

training UPDATES 61 S U M M E R 2 0 1 7-1 8

Half century up for Curtin Uni Curtin University is celebrating its fiftieth anniversary this year. Originally known as the WA Institute of Technology – WAIT was the common usage – when it opened in 1967, Curtin University has grown from educating almost 3000 West Australians to become WA’s largest university. It currently has a student body of more than 58,000 and more than 220,000 alumni. Today, Curtin is one of Perth’s biggest singlesite employers, directly employing more than 4000 people and indirectly being responsible for some 12,000 jobs in WA, contributing about $1.9 billion to the WA economy in 2016. Curtin is placed in the top one per cent of universities world-wide and ninth in Australia, according to the Academic Ranking of World Universities. It has campuses in Australia, Malaysia and Singapore and its newest campus recently opened in Dubai.

Curtin University turned 50 this year.

To celebrate the fiftieth anniversary milestone, a gala dinner was held at Crown in August. The guest list of 750 included alumni who have contributed to Curtin’s success over the past five decades. Master Builders’ director Michael McLean attended as a past economics tutor who worked with former WA Premier Colin Barnett and Lyndon Rowe.

Curtin University is the only tertiary institution in WA that currently offers the Construction Management course to students. Master Builders’ Board member, Michael van Dongen and Adam Harry, Mark Kepplinger and Brendan Rzepecki are four of the many outstanding graduates of this course.

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62 UPDATES legal SUMMER 2017-18

Attack of the drones

Tom Jacobs

Matthew Lang

Operating drones unlawfully can lead to fines of up to $10,500. As the use of drones, for both commercial and recreational purposes, has become increasingly common, the law has played catch up. There is no single set of rules to follow – if you are operating a drone on your building site (or you are controlling a site where one is being used), you need to consider whether civil aviation safety legislation, state and federal privacy law and principles of nuisance and trespass might apply to you. Civil aviation safety regulations The Commonwealth Civil Aviation Safety Regulations 1998 set out a number of standard operation conditions that drone operators must follow. According to the conditions, drones must only be flown during the day and within the visual line of sight of the operator. They cannot be flown more than 120 metres above the ground, or within 30 metres of other people. Drones must not be flown in prohibited areas without permission, nor over heavily populated areas, such as beaches or parks. They must not be flown within 5.5 kilometres of a controlled aerodrome, nor in the area of a public safety operation. And you may only operate one drone at a time. In addition, if the drone you are operating weighs more than two kilograms, you will need to obtain a remotely piloted aircraft operator’s certificate (ReOC) from the Civil Aviation Safety Authority (CASA). For commercial use, drones that weigh less than two kilograms do not require a licence. However, CASA must be notified before the drone is operated.

Darcy Thompson

Trespass and nuisance Finally, you must consider whether, by entering into the airspace of adjoining properties, you are interfering with the “ordinary use and enjoyment of that land” such as would amount to trespass or nuisance. It is likely that a drone merely passing through a neighbour’s airspace would not constitute a trespass or nuisance. If, however, a drone consistently operated within certain airspace, or was reasonably perceived to be gathering personal information or conducting surveillance, there might be an arguable case for trespass or nuisance. Damages could be hard to quantify, but perhaps more relevantly, you’ll need to consider the potential for the time, expense and publicity that might be experienced in dealing with a complaint. In a worst-case scenario, you might face an injunction to prevent the use of the drone. Conclusion There is no doubt that technology is changing, and will continue to change, the way we build. And as an example of this, drones will enhance the efficiency and quality of builds, as well as provide vital data to assist contactors in satisfying others as to compliance and progress. We think the use of drones in the construction industry is only going to grow. With this in mind, companies and individuals must ensure that they remain complaint with the law as it adapts to this new technology. Not doing so leads to the risk of large fines, and might lead to delay and added cost to a project, thus undoing the benefits of using the drone in the first place. If you have any queries about whether using a drone on your project is OK, call Jackson McDonald on 9426 6611.

You could be fined up to $10,500 for any breach of these regulations, Privacy law A construction company with an annual turnover of more than $3 million must also consider how the Commonwealth Privacy Act 1988 might apply to its use of drones. If a drone captures “personal information”, such as images or footage that could reasonably identify an individual, then the data collection provisions in the Act must be followed. Similarly, if a drone inadvertently records conversations of a private nature, then the Western Australian Surveillance Devices Act 1998 might apply.

This article was prepared by Jackson McDonald partner Tom Jacobs (tjacobs@jacmac.com. au, 9426 6698), special counsel Matthew Lang (mlang@jacmac.com.au, 9426 6629) and restricted practitioner Darcy Thompson (dthompson@jacmac. com.au, 9426 6775).

insurance UPDATES 63 S U M M E R 2 0 1 7-1 8

Contractors’ professional indemnity insurance – who, what and why

Jeff Concanen MBA Insurance Services state manager WA

What is Professional Indemnity Insurance (or PI insurance)? It’s insurance that provides financial protection for companies and individuals for claims made against them in the course of carrying out their professional services. Why you need PI insurance Construction industry professionals such as contractors and builders who provide design or other professional services in addition to, or as part of their construction activities for clients, assume the additional responsibilities and liabilities of a design professional. Claims against design and construct contractors almost always involve professional (e.g. design) and non-professional (e.g. workmanship) services. The problem arises where there are two or more proximate causes of a loss and one of those causes is excluded, then legally the entire claim may be excluded! Whether or not you provide these professional services in-house or engage an external consultant, you assume liability to your clients or other parties for claims arising out of injury or loss incurred as a result of a breach of professional duty in the provision of these professional services. Design and construct firms face significant liability exposures from the multi-disciplinary professional services they provide on a daily basis. Getting it wrong can have catastrophic financial consequences, so managing those exposures and purchasing high quality, comprehensive professional indemnity insurance is no longer an option – it’s a necessity for survival. Who takes out PI insurance? In the past, PI insurance was only considered by engineers, architects or designers and the like. But as you can see, the contractor or builder entering into the design and construct contract assumes the liability arising out of

injury or loss incurred as a result of a breach of professional duty, even if provided by an external consultant.

and construct contracts, even if the design component is subcontracted to a third party, are at risk of professional indemnity claims.

What are you being covered for? PI insurance provides essential financial protection for construction (design and construct) consultants against potential losses as contractors increasingly take on design liability either by employing their own in-house design professionals or by assuming liability where they subcontract out the design element.

MBA Insurance Services (MBAIS) has collaborated with a specialist underwriter to offer Master Builder members an exclusive Design and Construct Professional Indemnity Insurance policy. Contact MBAIS on 9476 9898 and get the right advice on your professional indemnity requirements.

Key exposures are design failure, inadequate or incorrect advice, design, specification, inadequate supervision in project management, inappropriate or incorrect certification, lack of experience, poor work documentation and poor communication with clients. How does PI insurance work? PI insurance must be in place at the time a claim is made against you and is therefore described as a ‘claims-made’ policy. This means that the policy only provides cover for claims made against you during the period of insurance and subject to the terms, conditions and exclusions of the policy in place at the time. It is critical you advise your insurance broker as soon as you are aware of a claim against you, or even an incident that could possibly give rise to a claim prior to the expiry of your policy. Who can claim against you? PI claims can be made against you by clients, regulatory authorities, professional bodies and associations, as well as other third parties to whom you owe a duty of care (including communities). PI insurance protects you against a number of allegations such as claims for: • Negligence – if you fail to exercise the standard of care for your profession or occupation. • Libel and slander (also known as defamation). • Infringement of intellectual property rights, including breach of copyright, patents and trade secrets. • Breach of legislation such as the Competition and Consumer Act 2010 (formerly the Trade Practices Act) for claims alleging misleading and deceptive conduct. Professional liability insurance is no longer just the domain of the architect, engineer or draftsman. Contractors entering into design

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12% off Hospital and Extras MBA has partnered with HBF, one of Australia’s largest and most trusted health funds, to offer great value health cover for its members. HBF has a wide range of flexible, award-winning health cover options to suit all lifestyles and needs. Plus, MBA members will enjoy a wide range of discounts including 12% off Hospital and Extras and up to 23% discount on home, landlords, car, caravan, trailer and boat insurance and up to 19% discount on travel insurance.

Secure competitive insurances with a construction sector specialist Secure competitive insurances with a construction sector specialist, MBA Insurance Services. Using its construction market leverage, benefit from attractive premium pricing and better policy terms for your business and personal insurances. A strong service is part of this broker’s commitment to Master Builders members. Contact MBAIS now on 1800 150 888 to discuss your premiums and insurance needs.

To discuss the best option for you, contact HBF’s Corporate Health Team today!

Up to 30 minutes phone or one hour face to face free legal advice Jackson McDonald offers immediate, free legal advice up to 30 minutes over the phone or up to one hour face to face. The free legal advice complements Master Builders’ ongoing services of standard form contracts, insurance products and safety training and auditing. When legal issues arise, the service will offer quick and knowledgeable initial guidance. A 7% reduction on normal fee schedules also applies for members. Hotline: 1300 651 959

Get a quote today: corphealth@hbf.com.au www.hbf.com.au

www.mbais.com.au

www.jacmac.com.au

* Scheme participants will generally require proof of membership through our membership card or other verification. We remind members that all benefits are subject to terms and conditions specified by the service provider and may be withdrawn at any time. It is recommended that you contact the service provider advertised to confirm the most recent offer available.

STATIONERY

TELECOMMUNICATION

Exclusive range of products with genuine discounts

www.ahg.com.au/wa/master-builders

www.mbconnect.com.au MASTER BUILDERS CONTRACTS

For more information on these offers, please visit www.ahg.com.au/wa/master-builders

So why accept less when you can connect to more? For more information, call 1300 88 13 72 or email service@mbconnect.com.au.

TV PROMOTION

OfficeMax is offering Master Builders members 10-25% off the standard price of many popular office and stationery items. By buying through Master Builders, you will enjoy the benefits of combined purchasing pricing for the extensive range offered by OfficeMax.

Master Builders Connect has teamed up with Telstra to offer members more of the good stuff at exclusive rates. No gimmicks. No confusion. Just straight-talking, no-nonsense deals that give you all the features you want. More talk & text. More data. More flexibility. And more coverage.

Master Builders Members, their employees, and families are entitled to great discounts on new, demo and used vehicles as well as great deals on finance and insurance, 10% discount on servicing and accessories, 4c per litre discount on fuel when you purchase a new or used car from AHG (*conditions apply), and many other great benefits.

$400 discount when purchasing a 3 minute advertorial production

10% - 25% off the standard price of popular items

Home in WA is the Master Builders’ very own TV series and is into its 15th series! Members can receive a $400 discount when they purchase a 3 minute advertorial production. Your business will get state-wide TV coverage, on both GWN7 regional and Channel 7 in the metro area. This year, you will also be supplied with a free advertorial production YouTube link to post on your website! Phone Ron (Dingo) Reddingius on 0417 279 103 or (08) 9246 5442 or watch the show on the website.

Save up to 65% off the price of selected Master Builders’ contracts & specification

For further information email Lauren.Howson@officemax.com.au

www.officemax.com.au MASTER BUILDERS TRAINING

MOTOR VEHICLES

Discounts across sales, service, parts, accessories, finance & insurance

Member discounts apply on a range of training courses Training is affordable when you receive massive discounts on a range of our industry wide training courses. You may also be entitled to receive a subsidy from the Construction Training Fund which is bulked billed by Master Builders.

Master Builders’ quality contracts offer comprehensive cover for the industry. We offer a range of discounted contracts to members for both residential and commercial projects. Contracts are available for purchase online or at Master Builders’ offices. Conditions may apply.

Conditions and exclusions may apply.

Contact Master Builders on 9476 9800 for further details or visit www.mbawa.com/ online-store/contracts.

Receive reduced fee for service safety products To ensure safety on construction sites, Master Builders offers members reduced fee for service products which include management plans, inspections, audits, safe work method statements, mentoring, and toolbox meetings. Members also receive free advice on all occupational safety and health related matters. Contact Mike Fitzgerald, Safety Manager on 9476 9800 or email mike@mbawa.com for a quote.

100 Day Payment Program Master Builders has partnered with Harvey Norman Commercial to offer members an amazing payment plan on items purchased. Terms and conditions apply. Visit our website for more information.

DISCOUNTED GAS PRICES

PAYMENT PLAN

MASTER BUILDERS SAFETY

www.homeinwa.com

Jump on the savings bandwagon, enjoy 30% off your natural gas charges* Master Builders have partnered with Kleenheat to offer members 30% off their natural gas charges*. Make the switch today and say “hello” to better value with WA’s local energy supplier. Visit www.kleenheat.com.au/masterbuilders for more information *Terms and conditions apply.

www.mbawa.com/member-savings

New to the Fielders Range Manufactured from Australian steel supplied by BlueScope. • Strong, durable and termite resistant. • Simple to install in four steps. • Range of standard sizes plus customisable options available. • Remains straight, does not twist, shrink or warp and is white-ant proof. • Manufactured to suit a range of designer’s requirements. • Produced at a very high standard to ensure accuracy when it comes to size as well as finish. • Metal frames can be easily fitted during construction or retrofitted. • Unique stud partition brackets which provide a secure fixing method for both timber and steel studwork.

1800 182 255 fielders.com.au

Introducing Fielders Steel Door Frames • Manufactured from Australian steel supplied by BlueScope. • Strong, durable and termite resistant. • Simple to install in four steps. • Range of standard sizes plus customisable options available. 1800 182 255 /// fielders.com.au

68 FEATURE SUMMER 2017-18

INDOOR/ OUTDOOR LIVING TRENDS ADDING SO MUCH MORE THAN AESTHETIC VALUE We’re more than halfway through the year and as we begin our love affair with sunshine, swimming pools and all things summer again there are a number of strong outdoor living trends developing that look set to make a splash... This year, attention is focused on the aesthetic value of beautifully designed, plus functional, outdoor living spaces and bringing the indoors out. It’s all about natural materials, retro-inspired style, and cool, soothing colours.

OUTDOOR ROOMS By mimicking the feel and design of an interior room, one can create a cosy and inviting spot to enjoy the outdoors while still feeling at home — a spot where you can enjoy chatting, eating, or even watching TV. Mix furniture pieces such as sectional couches, lounges, and benches to create this flexibility. Large, clean-lined dining tables that you would picture inside a formal dining room are the perfect addition to the outdoor room. Due to the advancement of weatherproof materials, there are also plenty of options available to decorate outdoor spaces to resemble an indoor setting. By choosing a colour or pattern from the living room and expanding it one can duplicate the theme from inside the home, effectively creating a seamless, eye-pleasing transition. While we tended to open up our lounge rooms, family rooms and meals area to the outdoors, it is also possible to open up other rooms within the home to the outdoor, creating the illusion of more space. Opening a master ensuite, for example, to an enclosed private courtyard with an outdoor shower or even a spa is completely and utterly luxurious and creates a spa like ambiance within your home.

OUTDOOR KITCHENS Homeowners are also adding complete outdoor kitchens featuring state-of-the-art barbeque grills and smokers, chilled beverage centres, keg tappers, sinks, refrigerators and even brick ovens, that can be utilised for more than pizza. And remember, where there is cooking there will be gatherers, so plenty of seating is essential. And where outdoor space is limited – such as for inner city homeowners – outdoor elements can be multifunctional. The building of furniture into the outdoor space is cost effective, innovative and allows for increased versatility. Why build a simple retaining wall when it could be a bench seat, a retaining wall and an edible veggie patch all in one? The seamless feeling of the home can be further enhanced with the use of the same flooring throughout. Continuing the same flooring from the indoor through to the outdoor space, visually creating the illusion of one continuous space. Remember, it’s important to ensure that the finish that you use is hardwearing, easy to clean, and it absolutely must have some slip resistance!

OUTDOOR LIGHTING Another focal point is outdoor lighting. Outdoor lighting not only adds another aesthetic to built spaces, it also enables these spaces to be used day and night. Gaining popularity is soft mood lighting created by small discreet LED or solar lights hidden under or above ground, spotlighting outdoor features such as benches and sculptures; with an increased use of self-sustaining solar lights to reduce carbon foot print. Other options include string lighting, candles, or Tiki torches. Safety is also extremely important to address, and therefore the proper lighting for pathways and pool areas is crucial as well.

FEATURE 69 SUMMER 2017-18

SWIMMING POOLS Designer pools can completely transform an outdoor space and can be well and truly integrated into the design aesthetic and personality of the home, serving as a fun and functional space for the whole family. The freedom of custom design allows architects to create pool builds in varied and unusual spaces. Conventional and rectangular designs are a thing of the past that are being replaced by pool design projects that use both simple and shapely designs to best utilise space and stand out. For the ultimate in luxury, knife-edge or perimeter edge pools are taking homeowners by storm. The water in a knife-edge pool flows over on all sides rather than just one side for a smooth, mirror-like surface. Featuring four edges, the water flows into a groove directly along the edge, to result in a flat and precise appearance. A knife-edge pool is different from an infinity edge pool in that the infinity pools have one side built slightly lower than the others to allow water to fall over the side, giving it a floating appearance on the horizon. Sleek pools are on the rise throughout Australia, and so too are water features to complement them. Unique waterfalls and fountains can be constructed within the outdoor pool area to enhance the entire outdoor living experience. With custom water features, you get a double benefit: they cool you off plus they sound relaxing. They can be stand-alone features or built right into the rocky landscape around the pool for a natural look. An essential luxury addition for pools now is a lounging ledge. Usually around 20cm deep, the lounge seat can be used for relaxation and sunbathing, and for children to enjoy a safe paddle. And as technology evolves, innovations to custom pool design mature with it. The most recent technological developments allow luxury pools to be controlled remotely, often offering features that allow the homeowner to connect to the pool over a smartphone or mobile device. This puts features like lighting, pumps, temperature and cleaning at one’s fingertips.

Lighting is an integral aspect of architectural design, and the lighting for pools is no different. Skylights, windows and sliding doors are a must have for indoor pools that require natural lighting. In-ground deck lights add drama to the design, whilst illuminating the path to a pool. The addition of carefully selected lighting helps control the atmospheric quality of your pool and can be used to create exciting effects on both the main pool and water features. Want a pool but don’t have the space? Try a plunge pool. Even for those where space is not at a premium, many homeowners simply prefer the ease of maintenance that comes with a plunge pool, as well as the reduction in installation and running costs.

XERISCAPING Unlike landscaping, the whole purpose of xeriscaping is to boost water conservation. Xeriscaping effectively reduces or eliminates the need for supplemental water from irrigation and includes fewer grassy areas (that don’t need to be mown or watered), strategic plant placement (utilising plenty of shade to nix the need for so much watering) and the use of plants native to the area.

URBAN EDIBLE GARDENS A trend toward urban edible gardening and farming is also on the rise. Home grown, free of chemicals and fresh from the garden to the dinner plate. The result of which will be an increase in defined garden plots and planter boxes.

FIRE PITS A built-in fire place or fire pit is a great addition to a backyard entertaining setting, not only for their aesthetic qualities but for warming up those chilly, winter evenings. Whether you are planning to have a sophisticated design constructed by the professionals or wanting to DIY your way to an outdoor fire feature, these stunning additions will allow your outdoor space to be enjoyed all year round.

70 ADVERTORIAL ADVERTORIAL S U M M EARU 2 G 0U1S7T-â&#x20AC;&#x201C;1O8 C T O B E R 2 0 1 7

Is F or MGP graded timber better for outdoor structures? The correct selection of outdoor treated structural pine is extremely important when building a balcony, pergola or other outdoor project. Any pine used outdoors must be treated to ensure protection against termites and fungal decay. While colour has traditionally been used to indicate treatment (green indicating outdoor treatment), new technologies mean that colour alone can no longer be relied on to determine treatment type. Today the preferred termite and fungal treatment for outdoor structural pine is Light Organic Solvent Preservative (LOSP), which also comes in new treatment low-odour options. For outdoor projects, the first consideration is what H-class (hazard class) the structure and/ or elements of the project needs to conform to. The most common categories for domestic building projects are H4 for in-ground (less than 150mm above ground) or H3 for above ground (more than 150mm above ground). The required hazard level will have a bearing on the available treatment options. Most outdoor building projects, excluding posts in the ground that require H4 treatment, would typically require H3 treatment. Treatment and hazard classes are shown on individual sticks of timber, either in the form of a stamp or a stapled tag. For structural projects, the stress grade of the timber is also important. Timber is stress graded so that it can be classified into groups that will achieve the same basic structural design properties. These properties include, for example, bending stiffness and strength, tension strength and compression strength.

Timber sold in Australia is stress graded as either MGP (Machine Graded Pine) or F (either visually or machine graded). While most treated pine sold in Australia is either MGP10 or F7, other grades such as MGP12, MGP15 and F5 are also available. Grade is also shown on individual sticks of timber along with treatment and hazard class.

Bending strength is largely determined by the number and location of defects, with any large knots at the end of boards reducing overall bending strength. MGP10 measures 17MPa (megapascal) and F7 measure 18MPa. Timberlink manufactures MGP10 to achieve the higher 18MPa, so Timberlink MGP10 can be substituted if F7 has been specified.

The industry is often asked why it offers pine products in both MGP10 and F7 grades when they appear to be similar products. Itâ&#x20AC;&#x2122;s a great question!

For outdoor projects containing exposed structural members, appearance is also important. This is why Timberlink visually overrides every piece of structural timber produced, be it MGP or F graded. For premium projects, Timberlink Green from New Zealand comes in an Outdoor Select grade.

In terms of product performance, both MGP10 and F7 grades meet Australian standards. Stiffness and strength are the two main properties to consider when deciding which grade is better suited to a project. MGP10 has a higher stiffness grade, while F7 has a slightly higher strength grade. If plans have been provided, it is important to purchase the exact grade of timber specified to ensure that structural integrity is maintained. If not, you can confidently choose either grade. When grading timber, most mills test firstly for stiffness, which is generally the basis on which most structural members are designed. Stiffness measures how much a beam will deflect for any given load and is related to density, fibre quality, moisture content and pine defects. MGP10 measures 10.0GPa (gigapaschals), while F7 measures lower, at 7.9GPa.

The nature of the trees, the regions in which the plantations are grown and the local mill operations are all factors that determine which structural grade is manufactured. New Zealand pine for outdoors, much of which is sold in Australia, is predominantly graded as F7. This is because the New Zealand resource has a lower stiffness measure than the Australian one and its high quality pruned material with few or no defects gives it a higher bending strength. Furthermore, New Zealand pine is better suited to producing mid to wide sizes â&#x20AC;&#x201C; highly complementary to the Australian resource that tends to produce narrow to mid wide sizes. Grading Australian pine as F7 enables the industry to offer a very wide range of sizes across the one grade.

Equally important is bending strength, which refers to how much load a beam can take before it breaks.

So while offering both MGP10 and F7 is good for the industry and consumers. Rest assured that both grades will do the same great job.

We are particularly proud of Timberlink Green. Our innovative low odour treatment technology means that Timberlink Green is simply the best outdoor structural pine and will truly pass the test of time.

72 WHAT’S NEW SUMMER 2017-18

FUEL CARD No monthly card fee for the first 3 months* Don’t waste your time and money searching for a single branded fuel station. With WEX Motorpass you’re not locked in, so you have the freedom to choose from almost 6,000 petrol stations across the country. Until the end of February 2018, apply for a WEX Motorpass fuel card and receive 3 months with no monthly card fee.* COLORBOND® steel, a popular choice for Australian residential and commercial buildings for over 50 years, introduces an elegant matt finish to complement the latest building design trends. Harnessing new paint technology to deliver a naturally inspired finish that diffuses light for a soft, textured, designer look, COLORBOND® steel Matt is available in Surfmist® Matt, Shale Grey™ Matt, Dune® Matt, Basalt® Matt and Monument® Matt. Tested for over a decade, COLORBOND® steel Matt has been designed to withstand our harsh Australian environment. The result is a product which maintains its Matt finish, looking even better for longer. For more information visit: www.colorbond.com/matt

*The offer ends 5.00pm AEST 28/02/2018 and is available when you apply online at motorpass.com.au and use the promo code BUILD. The offer is available to new customers only and cannot be used in conjunction with any other offer. The offer applies to each card issued under your WEX Motorpass account. The 3 month no monthly card fee offer applies for the first 3 months from the account establishment date. The standard card fees will apply from the beginning of the 4th month from the account establishment date. For full terms and conditions please visit motorpass.com.au/terms-and-conditions

Contact Jay Whitmore Business Development Manager M: 0403 348 513 E: jay.whitmore@wexaustralia.com Corporate rates available for large fleets

COLORBOND®, BlueScope, the BlueScope brand mark and ® colour names are registered trade marks of BlueScope Steel Limited. TM colour names are trade marks of BlueScope Steel Limited. © 2017 BlueScope Steel Limited ABN 16 000 011 058. All rights reserved.

A UTE IS A UTE, RIGHT? Wheels, motor, seats, they’re all the same, aren’t they? If you walk into two dealerships and ask for a ‘ute’ would you take the cheapest one? Or would you compare the tray, fuel type, transmission, air-conditioning, warranty, capped priced servicing, build quality? Without all the specifications, you aren’t able to make an informed decision about which ute represents the best value.

Construction insurance is no different. It has conditions, exclusions, clauses and definitions and these can be significantly different from one insurer to the next. We can help you get the best value for money because we are the construction insurance specialists.

Our business is built on advice.

Jeff Concanen

West Australian State Manager MBA Insurance Services

profits nce broker delivering ra su in ly on e th is IS MBA dustry. ilding & construction in bu e th to ck ba y tl ec dir

The Amarok V6 TDI. 180kW of power on Overboost.

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of power Itâ&#x20AC;&#x2122;s this much more powerful than our nearest competitor.

The most powerful ute in its class. When it comes to power, the Amarok V6 is in a class of its own. With the 165kW 3.0 litre V6 Turbo Dieselâ&#x20AC;&#x2122;s Overboost feature engaged, power surges up to an unrivalled 180kW, making the Amarok V6 33kW more powerful than its nearest competitor. Find out more about the Amarok V6 at AmarokV6.com.au

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