Master Builder Western Australia Winter 2019 by arkmedia4217

OFFICIAL MAGAZINE OF THE MASTER BUILDERS ASSOCIATION OF WESTERN AUSTRALIA VOLUME 16 | NUMBER 2 | WINTER 2019

TOP HOME OF THE

SOUTH WEST

Results for builders in the Federal election

American style merges with Australian lifestyle in award-winning South West residence

Harbour and home excellence in the Pilbara and Kimberley

Special Report: What everyone in construction should know about non-conforming products

18-21 September 2019 Four Seasons Hotel, Sydney

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Give your workmate the weekend off Thanks to Toyota Fleet and All-New RAV4

After much anticipation, All-New RAV4 has arrived. It’s available in 2WD, petrol and electric AWD; and is our first ever Hybrid SUV in Australia. The advanced electric AWD delivers low fuel consumption of just 4.8L/100km (combined)1. And our class-leading Toyota Safety Sense comes as standard across the range. You’ll also enjoy plenty of room for your next adventure, thanks to its versatile boot. To find out more, visit your Fleet Specialist Dealer or call 1800 444 847. ®

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Master Builders Association membership details required to redeem Gold Fleet Discounts.

1 Fuel consumption is based on Toyota GX Hybrid AWD model. Achieved in test conditions. Actual fuel consumption may vary depending on driving conditions/style, vehicle condition and option/accessories fitted. TFM2117 – MBA-WA 04/19

CONTENTS

OFF ICIA L MAG AZIN E OF THE MAS TER BUIL DER S ASS OCI ATIO VOLUME

On The Cover

16 | NUMB ER

2 | WINT ER

2019

TOP HOME OF

THE SOUTH WES T

Top South West home brings the US to Australia Palazzo Homes

Results for builders in the Federal election American style merg es with Austr alian lifesty Harbour and le in award home excel -winning lence in the South West Special Repo Pilbara and residence rt: What every Kimberley one in const ruction shoul d know abou t non-confor ming produ cts

10 18

ADVERTORIAL FEATURE CTF................................................................................3

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

Cemintel.........................................................................8

Federal Political Roundup............................................ 10 Speedy recovery predicted for WA building industry... 12 State budget lifts builder confidence........................... 13 WA’s first Baugruppe home project ............................ 14 Branches..................................................................... 15

AWARDS 2019 Master Builder-Bankwest South West Building Excellence Awards..................... 18 2019 Master Builder-Bankwest Building Excellence Awards for the Kimberley and Pilbara regions...............................22

UPDATES

MBAWA BOARD OF MANAGEMENT: President: Jason Kunkler Vice President: Philip Kemp Treasurer: Grant Burgess Immediate Past President: Rob Spadaccini Board Members: David Crothers, Michael van Dongen, Ray Kershaw, Steve McConkey, Isla McRobbie, Dan Perkins, John Ripp, Robert Shaw, Paula West.

President’s File...............................................................5

REPORTS

AUS TRA LIA

FOREWORDS From The Hill..................................................................9

N OF WES TER N

SENIOR STAFF: Director: John Gelavis Construction Director: Kim Richardson Membership Services Manager: Wayne Tardew Housing Director: Jason Robertson Legal Director: Marianne Rose Business Director: Graeme Dix Marketing Manager: Kelly Dewar-Matusik Events Manager: Monique Milne Technical Advisor: Romina De Santis Training Manager: Jess Sethi Communications Coordinator: Susan de Ruyter HEAD OFFICE: 35-37 Havelock Street, West Perth WA 6005 Post: PO Box 167, West Perth WA 6872 Phone: (08) 9476 9800 (Country) 1300 550 262 Fax: (08) 9476 9801 Email: mba@mbawa.com Website: www.mbawa.com REGIONAL BRANCHES: Albany-Great Southern: Linda Gibbs Ph: (08) 9841 6232 Bunbury-South West: Geoff Bosustow Ph: (08) 9721 6547 Geraldton-North West: Paul Kerr Ph: (08) 9921 5061 Esperance: Doug Backhouse Ph: 0437 184 366 SUBSCRIPTION ENQUIRIES: Master Builder is available for subscription at a cost of $55/year. Contact Master Builders’ reception via email at mba@mbawa.com for further information.

Special Report: Building with the right materials.........25 Insurance.....................................................................27 Finance........................................................................29 Health..........................................................................30 Housing.......................................................................32 Legal............................................................................33 Building Business........................................................34 Industrial Relations......................................................35

MEMBERSHIP Member Savings Scheme...........................................36 Wildcard wins tennis championship............................38 Personal Pars..............................................................39

Published by: ark:media Phone: +61 7 5629 5310 Email: marketing@arkmedia.net.au Web: www.arkmedia.net.au Managing Editor: Susan Guilfoyle Design Team: Andrew Crabb, Av Chidzey Advertising Manager: Yvonne Okseniuk Advertising Sales: Rose Delosreyes, Steve Clark Master Builder is the official publication of the Master Builders Association of Western Australia (MBAWA). It is produced four times per year and published by ark:media. The MBAWA was established in 1898 and is the state’s oldest building industry organisation. The MBAWA is part of the Australia-wide Master Builders movement. Master Builder is produced to keep members informed of matters affecting them. Opinions and/ or statements in any editorial and/or advertisements are not necessarily those of the publisher and/or the MBAWA. The publisher reserves the right to reject any material deemed unsuitable for publication. Other than for the purposes of and subject to the conditions prescribed under the copyright Act 1968, no part of Master Builder may in any form or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced, stored in a retrieval system or transmitted without prior written permission from the MBAWA or ark:media.

MASTER BUILDER WINTER 2019

ADVERTORIAL

Receive up to $25,000 when you take on an apprentice. The CTF can reduce the costs of employing apprentices in WA’s building and construction industry for MBA members. You can now claim your CTF incentives (details below) online! Visit ctf.wa.gov.au and click log in to create your individual or business account via a secure portal which will enable you to: • Lodge new claims • Track and monitor claims • Manage account users and permissions (for businesses) • Lodge and pay BCITF Levy • Track and monitor BCITF Levy projects attached to the secure account

CTF is also providing an extra bonus of up to $2,000 to eligible employers for the employment of women in non-traditional trades and a Mature Age (21 years or older) bonus of up to $2,000. Additional supplements for employment of indigenous and regional trainees/ apprentices bring the maximum grant available to a total of $25,000. The first is paid after probation and six months of continuous employment; the second at the half-way point of the indenture and the final payment is made after successful completion of the qualification.

CTF will also be making all payments for eligible claims by EFT. The CTF has a range of incentives for eligible employers of apprentices in construction trades, with up to $25,000 in incentives now available to help reduce the costs of adding a new apprentice to your business. The minimum standard grant available to an eligible employer is $3,000 (for a 12-month traineeship), rising to a maximum of $10,000 for a 48-month apprenticeship in core construction trade areas. In addition to the standard grants: CTF now provides a Trade Bonus of up to $4,000, a bonus of up to $2,000 to an employer of an apprentice that has successfully completed a recognised Certificate II VET-in Schools or pre-apprenticeship qualification.

Receive up to $25,000 to help train an apprentice.

MBA members will also receive the benefits of the grant from the CTF if hosting an apprentice through a group training organisation (GTO). The GTO claims the grant on your behalf and uses this funding to reduce the cost of employing and training the apprentice. This will result in a reduction in your net costs of hiring the apprentice through the GTO. Look for the note on the GTO’s invoice that shows your apprentice is being supported by the Construction Training Fund. Visit ctf.wa.gov.au/Industry/Funding Support or call 9244 0100 for more information about the CTF’s apprenticeship grants and other support programs for the construction industry. CTF, helping fund the skills that build your future.

Apprentices bring leading edge skills to your business and they help strengthen the building and construction workforce. That’s why the CTF provides up to $25,000 in grants for you to reduce the cost of training each apprentice you employ. For details on eligibility,visit ctf.wa.gov.au or call 9244 0100. To make a claim, go to ctf.wa.gov.au and click log in to create your account.

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PRESIDENT’S FILE

We’ve had our say, now we will see if the Federal Government got the message I know I speak for all West Australian members when I say I was proud our state was chosen to launch the Master Builders Australia Federal election campaign. It is pleasing to see WA acknowledged as an important state and one with the power to swing the election. It is essential that the newly elected Morrison Government implement policies that give our industry the freedom to grow so we can make an even bigger and better contribution to the community as well as state and national economies. We look forward to working with the government, confident that we ran a wellconsidered campaign to ensure the voice of the building and construction industry was heard and our key policies were understood by both sides of politics.

Jason Kunkler President ACKNOWLEDGING THE SUPPORT OF OUR 2019 PARTNERS

On April 8, Master Builders Chief Executive Officer, Denita Wawn and National President Hedley Davis joined Master Builders WA Executive Director John Gelavis, National Board Member Rob Shaw and other members to officially launch the campaign at a building site in West Perth. The event was covered by a strong contingent of the WA media. Elections are a great opportunity to put forward our views at a time when politicians are really listening. For an organisation such as Master Builders, it’s also a chance to assess the likely effects of various political plans and either support or challenge them, forcing all parties to justify their polices so Australians can make informed decisions. There are lots of reasons why we think our views should be important to the Federal Government. The building and construction industry is vital to Australia’s success and makes a major contribution to the national economy. Our industry builds roads, bridges, homes, schools and hospitals. We also build jobs, businesses, skills and prosperity throughout the community.

Insurance Partner

WWW.MBAWA.COM

We are the second largest industry in Australia, representing 9 per cent of GDP, performing work valued at more than $220 billion annually, injecting over $150 billion into our economy and responsible for 17 per cent of total taxes raised by governments. We directly employ more than 1.1 million people – about one in 10 workers –

and our industry has more small businesses than any other sector. The Strong Building, Strong Economy campaign set out these policies: • Backing small business - our policies support small business and encourage fair competition and commercial conduct. • Boosting skilled and secure careers - our plan to fix forecast skills shortages and increase jobs. • Building stronger and more prosperous communities - measures to implement effective building regulations, address energy efficiencies and develop strategic infrastructure. • Balanced workplace laws and safe building sites – the government must retain the Australian Building and Construction Commission and continue to improve workplace relations law to ensure harmonious, safe and productive workplaces, not just more ‘tick-a-box’ red tape. To support the campaign in WA, three digital billboards were secured in prime traffic locations to promote the key messages as well as advertising in the West Australian newspaper and a social media campaign. Other campaign components included free media and paid advertising with both online and printed material. Part of the paid advertising included three television commercials, which were produced and aired over the course of the election on union bullying and the Labor tax policy. Master Builders WA developed local content as well as sharing the national content on its social media platform such as Twitter, Facebook, Instagram and LinkedIn. The focus of the advertising was around the key messages of “stop the bullying” and opposing the abolition of the Australian Building and Construction Commission. Union bullying continues to be a major issue on WA building sites, which drives up construction costs, forcing the community to pay more for schools and hospitals and other taxpayerfunded infrastructure. Master Builders Australia and Master Builders WA both made a significant investment to stand up for our industry and we believe we achieved a great result for our members and the industry. In the coming months we will see how well the Morrison Government heard our message and continue our engagement with them as they begin the rollout of their election policies and promises. 5

DIRECTOR’S FILE

Hard work leads to successful advocacy The focus at Master Builders is always on our members and we have worked hard to achieve some great results recently. We are proud to have led the way in convincing the State Government to open up eligibility criteria for borrowing money from Keystart. It’s a win-win that will create much-needed work for residential builders, and give buyers who have been overlooked by the banks a chance to achieve the dream of home ownership. We have been running a dedicated campaign to promote Keystart changes since the start of the year, including state Budget submissions, government meetings and press coverage. Read more about this success story on page 10 and 13. With both a Federal election and the 2019-2020 State budget happening within days of each other last month, the Master Builders team has been making consistent advocacy efforts across a range of other issues. The building and construction industry in Western Australia accounts for 10 per cent of the state’s full-time employment so it is critical our voice is heard.

John Gelavis Executive Director ACKNOWLEDGING THE SUPPORT OF OUR 2019 PARTNERS

Insurance Partner

We have held meetings with ministers at both a state and nationwide level as well as the state opposition to present our policy positions on behalf of the industry. Additionally, we have provided submissions and input on several important issues and reviews affecting the entire building and construction industry. Residential building stimulus: Meeting with Treasurer Ben Wyatt The decline in residential construction has affected everyone, especially the many small builders, subcontractors and suppliers across the state. Regional Western Australia has been impacted heavily and we continue to support our members to get through this tough period. Late last year, Master Builders began a dedicated campaign to secure stimulus for our industry and members who are under pressure from a downturn which had been much longer and deeper than any of us have seen before. This continues to be extremely challenging due to WA’s financial position over the past couple of years and the McGowan Government’s understandable focus on reducing the State debt. Master Builders met with the Housing Minister Peter Tinley and other ministers to secure support for our recommendations to be included in the State budget. Master Builders also led a delegation of volume builder business owners to meet with Treasurer Ben Wyatt to present our analysis and stimulus request.

Stimulus request for first home buyers • Increase Keystart income limits by $15,000 (Singles $105,000, Couples $130,000 and Families $150,000 • Increase stamp duty exemption from $430,000 to $550,000 • Additional $5000 First Home Owners Boost for new homes for 12-month period, taking it to $15,000 • While we didn’t get everything on this wish list, we had better than expected results with the Keystart income limits, which were expanded by $15,000 for singles and couples and $20,000 for families, giving us some hope of turning the housing slump around. Master Builders meets with Premier and Treasurer Last month, Master Builders met with Premier Mark McGowan and Treasurer Ben Wyatt for a boardroom lunch at Construction House to discuss the many issues affecting the industry. Several key issues were discussed such as the Master Builders State budget submission, housing stimulus, security of payments, indemnity insurance, government procurement and industrial relations. Building Management and Works meets with Construction Council Jodie Cant, the Director General of Department of Finance, which overseas Building Management and Works, was a special guest at our March Construction Council meeting, which provided a chance for the committee to discuss the issues and make recommendations to improve the tendering process for all builders doing work for BMW. Security of payments legislation Master Builders conducted a boardroom lunch with Attorney General John Quigley and construction members to discuss pending legislation regarding security of payments after the release of the Fiocco report. It was clear that the government will continue to pursue statutory trusts, however Mr Quigley has committed to work with Master Builders to ensure the legislation supports the industry. Subcontractor Support Unit – Small Business Commission As part of the commitments made by the State Government, further progress is being made in the establishment of the Subcontractor Support Unit, managed by the Small Business Commission. This is expected to commence in July. Apprentices and training As well as having a representative on the Construction Training Fund (CTF) board, Master Builders is represented on the five-year review of the Building and Construction Industry Training Fund and the Act. The review is being chaired by former Labor MP John Kobelke and will include detailed consultation with the final report to the Minister for Education and Training Sue Ellery expected in August. I look forward to updating you all in the next edition on more successful efforts by Master Builders on behalf of the building and construction industry. MASTER BUILDER WINTER 2019

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ADVERTORIAL: EXTERNAL LIGHTWEIGHT SYSTEMS

Cemintel:

Delivering on the preference for prefinished, lightweight materials New materials influence the way buildings are constructed and defined and Cemintel is responding to the growing importance of external and internal cladding with its Territory™ range of fibre cement panels. The Territory range delivers on the industry’s preference for prefinished, lightweight building materials. From external façades to interior surfaces, Territory is a reinterpretation of cladding as we know it, enriching the built environments in which it is used.

They are factory quality controlled, prefinished and ready to be installed. Panels can be installed in either a horizontal or vertical orientation, using the unique Designer Series® clip fixing system, which provides a ventilated cavity to keep the building dry. The panels are machined with a complementary tongue and groove profile so that they easily fit together.

The prefinished range simulates materials like stone, timber, concrete, metal, tiles and smooth render, in a sophisticated way, enhancing building facades and interior surfaces. There are 18 diverse and distinctive finishes available in the range.

Prefinished Territory panels do not need painting and minimal ongoing maintenance is required. They have a stain resistant and self-cleaning coating, also protecting against UV damage and colour fade. There is a choice of simple aluminium or colour matched, preformed corners to suit the desired aesthetic.

Cemintel Territory panels are cement bonded, fibrous wood particle cladding pressed with a surface texture and prefinished using a durable, multi-layer paint process.

Cemintel Territory has been tested to ‘AS5113: 2016 – Fire propagation testing and classification of external walls of buildings’, and has achieved full compliance across the range.

The Territory range from Cemintel brings more choice, better performance and ease of build to construction projects. FOR MORE INFORMATION VISIT: cemintel.com.au | 1300 236 468

MASTER BUILDER WINTER 2019

FROM THE HILL

Keystart and the East Perth Power Station create opportunities for builders We want to continue that good work, which is why we’re introducing a targeted housing stimulus package. By temporarily relaxing Keystart criteria to allow more people to access the scheme, we’ll help create more jobs, more homes, and ultimately better lives for many Western Australians around the state. Keystart’s existing income limits will increase by $15,000 for singles and couples and by $20,000 for families from July 1, 2019 to December 31, 2019, giving more people access to loans. The income limits will revert to the current levels from January 1, 2020. Owning your own home is a big achievement. You should have to work for it, we all know that, but with banks more cautious than ever with regards to lending and many lowto-moderate income earners locked out by them, well, making it a little bit easier for people is an important step. And one we can all be proud of, together. These temporary changes, when allied to existing measures like the State Government’s $10,000 First Home Owners’ Grant and discounted rates of stamp duty, will turn the dream of home ownership into a reality.

Premier Mark McGowan My government understands how important the building sector is to our great state. When West Australians are building things, either commercial buildings or residential dwellings in our communities, you are creating jobs and boosting the economy. Those commercial buildings are often dazzling architectural achievements. Just as importantly, the family homes you create are places people will grow up in, grow old in and form an emotional connection to.

I thank and acknowledge the role of the Master Builders’ Association and its members for their tireless advocacy in this area. Building powers the economy. Which brings us to a building that used to bring power to the residents of our capital: The East Perth Power Station. After years of delay and inaction, I was delighted to stand with the Treasurer, Minister Johnston, John Carey MLA and Patrick Gorman the Federal Member for Perth recently and announce that we are kick-starting this icon’s redevelopment.

The $30million commitment in this year’s State Budget will facilitate de-constraining the site of its energy infrastructure. This will give certainty to any future developers that they can revitalise the area with that infrastructure in place, which includes a gas pressure reduction station and Western Power’s electricity switchyard. It’s a beautiful site, a 103-year-old centurion of the Swan River. For years it has sat dormant on the shore, unused since 1981. This serious financial commitment, the largest towards the project since it was taken over by the East Perth Redevelopment Authority in 2003, is an indication of how key my government sees the site to the next stage of Perth. We must retain and build on our past, in order to harness the potential of the future. I can imagine a future development that celebrates the heritage of the former power station building, provides public access for the community and ensures that there are social and cultural benefits for all West Australians, and our growing interstate and overseas visitor numbers. The 8.5-hectare site also provides the opportunity to create a new Metronet precinct around East Perth station with new housing opportunities, improved access to public transport and better connectivity with the Swan River. I’d strongly urge readers to consider what a unique development opportunity this site provides. I know many of you and your organisations are up to the task of matching vision with reality, and I’m excited to see what the future of the East Perth Power Station holds for all of us.

I am determined that, working alongside your sector, my government will get the settings right to get Western Australia building again. That’s why I am so proud of two major announcements in this year’s 2019-20 WA State Budget: One relating to Keystart; the other, the iconic East Perth Power Station. My government wants to help as many Western Australians as possible achieve the dream of home ownership. Keystart is one of WA’s great success stories in housing affordability. It helps people become home owners where otherwise that might not be possible. WWW.MBAWA.COM

John Carey MLA, Premier Mark McGowan and Patrick Gorman MP at the East Perth Power Station

REPORTS: FEDERAL POLITICAL ROUNDUP

Builders support nationwide boost for first home owners The focus on housing during the Federal election was a positive sign for the building industry. Both sides of politics promised to help first home buyers, with Prime Minister Scott Morrison leading the way by announcing his First Home Loan Deposit Scheme, followed by shadow Treasurer Chris Bowen’s quick assurance that Labor would match the plan. For the first time in the election campaign, there was clear bipartisan support for the many Australians who can’t get over the hurdle of saving a 20 per cent deposit to buy a home of their own. Housing is sometimes overlooked by other, more fashionable issues on the great stage of politics but having a place to live is one of the most basic needs of our community and there are many people who are sleeping rough or can’t get into the housing market for various reasons. The election pledges were obviously aimed at young people who make up the bulk of first home buyers but they also appealed to parents, who worry about their children being unable to afford their own place. By stimulating demand, the scheme could end the fiveyear house price slump in WA. Other benefits for the wider community include its potential to beat the credit squeeze and increase new home construction, which is proven to drive the economy. Details of the first home deposit scheme are yet to be worked out but, for those eligible, it brings down the deposit requirement to 5 per cent, with the government guaranteeing a further 15 per cent. As well as cutting the time taken to save a deposit, it means the buyer can avoid paying many thousands in mortgage insurance. The scheme opens to first home buyers earning up to $125,000 a year or $200,000 for couples from January 1. It is capped at to 10,000 loans a year, which is equivalent to 10 per cent of the Australians who bought their first home in 2018. 10

In developing the home loan deposit scheme, the Federal Government would be well advised to spend some time understanding WA’s successful Keystart program, which has been the focus of nationwide attention since the election announcements. Keystart is a financial institution which has helped more than 100,000 West Australians own a home since being established by the state government in 1989 to give low-deposit loans to people who can’t meet mainstream bank requirements. It currently funds more than 50 per cent of First Home Owner Grant applicants across the state. Here are some of the Keystart features which could be the hallmarks of an effective national scheme: 1. A low deposit of 2 per cent of the property purchase price is required in the metro area and up to 7 per cent in regional WA. 2. No lender’s mortgage insurance which means savings of $8000 to $10,000. 3. No ongoing monthly account keeping fees. On top of this, Keystart carefully case manages clients to ensure they are on track and not having any major difficulties in repaying the loan. In the recent state budget, Treasurer Ben Wyatt announced wider availability of Keystart loans to counteract the tighter lending conditions sparked by the banking royal commission. The response to this announcement has been remarkable, with a significant rise in enquiries to Keystart from potential home buyers. As one of Australia’s favourite film characters, Darryl Kerrigan, once said: “It’s not a house, it’s a home. A man’s home is his castle.” Home ownership is one of life’s great ambitions so it is pleasing to see the issue finally take centre stage and be recognised in a way that could support many Australians.

New Federal ministers win industry approval Prime Minister Scott Morrison’s new ministerial line-up can look forward to building industry support. Master Builders Australia CEO Denita Wawn welcomed the Master Builders Australia CEO Denita Wawn appointment of Michael Sukkar as Housing Minister and Western Australia’s Christian Porter as Industrial Relations Minister. Other West Australians in senior roles include Member for Hasluck Ken Wyatt as the first indigenous Australian to be Indigenous Affairs Minister and Member for Forrest Nola Marino as Assistant Minister for Regional Development and Territories “It is particularly good news for our industry that industrial relations will be overseen by Attorney General Christian Porter in Cabinet,” Ms Wawn said. “The Prime Minister’s move to ensure that the nation’s chief law officer now has charge of enforcing the rule of law on construction sites will be welcomed by builders and tradies who heaved a sigh of relief that the return of the Morrison Government meant they would not have to face the surge in bullying promised by construction unions if Labor had been elected. “The housing industry plays a vital role in building a strong economy. Last week Master Builders called for the Minister of Housing to also have a senior economic portfolio and we welcome the appointment of Michael Sukkar MP as Assistant Treasurer and Minister for Housing. We look forward to working closely with him.” “It is also good to see the small business and vocational education and apprentices will have energetic champions in Senator Michaelia Cash and Steve Irons MP, these are both important to our industry. “Bringing together Energy and Emissions Reductions in one ministry makes sense and we look forward to working with Angus Taylor MP.”

MASTER BUILDER WINTER 2019

REPORTS: FEDERAL POLITICAL ROUNDUP Denita Wawn and John Gelavis in front of a Master Builders electronic billboard advertisement in central Perth

The election campaign press conference in April with WA executive director John Gelavis, WA and national board member Robert Shaw, Master Builders Australia CEO Denita Wawn and national president Hedley Davis

Strong election campaign pays off The Federal election was an important chance to grab the attention of politicians and Master Builders successfully championed policies that matter to our industry. Master Builders Australia launched its STRONG BUILDING STRONG ECONOMY campaign in WA in April, calling on all political candidates to support the Australian Building and Construction Commission, keep negative gearing, support small businesses and boost jobs.

Our election scorecard below shows how well the two major political parties got the message and were aligned with our policies. Master Builders was mentioned often during election press coverage and it was pleasing that our views on matters such as negative gearing were endorsed by other organisations and the public. Negative gearing became a hot election topic and our message resonated with the many people who work

hard and save to accumulate some assets but don’t see themselves as rich property investors. To many Australians, the leading issues in the election were jobs and the economy. Here again, the building industry was in complete accord with the wider community. As Master Builders Australia CEO Denita Wawn has said consistently, the building and construction industry is vital to Australia’s success and makes a major contribution to the economy. Our industry builds roads, bridges, homes and hospitals. We also build jobs, businesses, skills and prosperity.

FEDERAL ELECTION POLICY SCORE CARD MASTER BUILDERS AUSTRALIA POLICY

ALP

COALITION

Balanced Workplace Relations Laws & Safe Building Sites •

Retention of ABCC and ROC to ensure the rule of law maintained

•

Right of Entry rules are strengthened and enforced

•

Ensure workplace laws are fair and balanced

•

Safety laws not used as a back-door for unions to breach Right of Entry Laws

“Every day, in every community there are builders driving the economic growth that is needed for a stronger economy. Our members provide the most fulltime jobs in this country, their $220 billion industry is the nation’s second largest and they deserve to be heard,” she said.

Building Stronger & More Prosperous Communities •

No change to Negative Gearing or Capital Gains Tax

•

New incentives to increase housing supply

•

Increase infrastructure spending

•

Building regulations that meet community expectations, are enforced, and, don’t drive up costs

“We have campaigned to give our members a strong voice at this election and informing them about the policies that will impact on their businesses is integral to that,” she said.

Backing Small Business •

Don’t introduce additional red-tape unless it’s absolutely necessary

•

Reduce red-tape compliance burden on small business

•

Tax policies to back small business

•

Work with States and Territories to improve Payment Laws that are fair for all businesses

“The efforts of our members are essential for a stronger economy, to boost living standards and provide the critical infrastructure our community needs. The Federal Government must back the building and construction industry with policies that will support its success.”

Boosting Skilled & Secure Careers •

Policies and funding to address forecast skill shortages in the building trades

•

Recognise the role of industry-based not-for-profit RTOs

•

Increase funding to employers to take on more apprentices

•

Raise the profile of VET to highlight career opportunities

Authorised by Denita Wawn, Master Builders Australia, Forrest, ACT, 2603

WWW.MBAWA.COM

WWW.MASTERBUILDERS.COM.AU WWW.STRONGBUILDING.COM.AU

We can look ahead with confidence now the ABCC is no longer under threat, negative gearing is safe and we can expect support for small businesses and attractive career opportunities in the construction industry. 11

REPORTS

Speedy recovery predicted for WA building industry as economic health improves The state economy is bruised but the building industry will heal and become stronger, Master Builders Australia Chief Economist Shane Garrett recently announced.

Master Builders Australia Chief Economist Shane Garrett

Mr Garrett was in Perth for the Master BuildersBankwest Economics Breakfast in Perth last month, where he analysed the origins of the malaise in the industry but predicted future wellbeing.

Starting with recent history, he said new home building activity had been cut in half since the 2014 high point when work started on a record 32,600 new homes. The fall was driven by an unravelling of the conditions which brought activity to such strong levels earlier in the decade. The end of the mining boom put the labour market into retreat, with jobs being lost and the unemployment rate rising. Confidence plummeted and many people battened down the hatches financially.

WA has an advantage over other states with first home buyer engagement in the housing market, thanks to the Keystart program. The state has consistently topped the list for the highest rate of first home buyer participation in the country. The replication in WA of stamp duty super taxes on foreign buyers has been less fortunate. With foreign buyers paying very hefty stamp duty bills in the east coast markets, there is a great opportunity for WA to win over this segment of the market by dumping the levy. Latest forecasts see new home building activity in WA again starting to expand at a sustainable pace from their current low of just over 16,000 new starts to around 19,500 by 2022-23. Commercial building is also set to start moving higher in the coming years, from just over $4billion in 2018 to $4.32billion by 2022-23.

The result was to shrink the cohort of potential home buyers, since a full-time job is a must for those wishing to purchase. The dulling of job opportunities locally hit population growth as job seekers turned to Sydney and Melbourne rather than Perth. Having attracted a net inflow of 8,600 people from other states in 2012, WA lost more than 10,000 residents over the year to September 2018. The upshot was that annual population growth in WA dropped from more than 73,000 in 2012 to the current figure of 22,600. This has massive implications for housing demand – both purchases and renting. On top of this, the credit crunch following the announcement of the banking Royal Commission has had a major impact in depressing activity in the housing market. Population growth is also a critical driver of work in commercial building – think schools, shops, hospitals, restaurants and cafes. This side of the market has also seen the volume of work down by one third since peaking in mid-2012. Similarly, office building work has been adversely affected by the stagnation in the jobs market over recent years. Less jobs means fewer desks and workstations required. While recent developments have been grim, there are signs that the WA housing market is well placed to start moving again. Perth is now the most affordable capital in Australia. This offers those thinking of purchasing locally a real incentive to do so soon – whether as an investor or owner occupier. Perth’s favourable affordability position also suggests that house prices have a considerable amount of room for upward movement over time. Renewed growth in prices may not be too far off – the unemployment rate in WA has fallen from 6.9 per cent to 6 per cent over the past year and over 37,000 full-time jobs have been created in the year to March 2019. Expect this to give forward momentum. Recent figures indicate that the house price growth in a few Perth markets is now robust. 12

MASTER BUILDER WINTER 2019

REPORTS

State budget lifts builder confidence Wider access to Keystart loans will boost work levels for residential builders as the state finances improve. Treasurer Ben Wyatt announced the change Executive Director John Gelavis in the recent budget, along with the first surplus in five years of $553 million and a 4.1billion reduction in state debt. As well as the Keystart initiative, Master Builders pointed to continued access to the First Home Owner Grant, grants for employing apprentices and building Metronet and other infrastructure as helpful to the construction sector. Executive Director John Gelavis said the WA construction sector was at an all-time low and, although the industry was traditionally cyclical, the downturn had continued far longer than expected. “The McGowan Government has understandably been focused on getting the state finances in order and now they have announced WA is back on track, we look forward to confidence returning to the building industry,” he said. “The industry has lost around 15,000 workers during the downturn and a significant number of building companies have gone under. Many more are clinging to survival. “It is important to protect the building industry from devastation or it won’t have the capacity to build the new homes, roads, hospitals and other infrastructure which will be in demand as the state returns to better times. “We are grateful the government has listened to our calls for support and unlocked access to Keystart, raising the income levels for singles and couples by $15,000 and for families by $20,000. “These are people who have been shut out of the market by tighter access to credit but their income levels mean they are likely to be successful inhome ownership. “There has been a jump in calls to Keystart from people interested in loans since the changes were announced last week.

Builders look forward to more work opportunities

Metronet “There’s been a lot of talk about Metronet. Let’s get it built. “The announcement of $4.1billion to be spent on infrastructure work for Metronet over the next four years is music to builders’ ears. “Construction which is expected to begin on the Bayswater Station, Morley-Ellenbrook rail line, ThornlieCockburn Link and Yanchep rail extension will create thousands of jobs.” Residential building “As the Treasurer reported in his budget speech, WA households have a high savings rate of about 15 per cent, which is well over the national average of around five per cent. We hope the good news in the budget will encourage West Australians to relax their spending restrictions and go ahead with plans for home extensions and renovations, which will boost jobs in the housing sector.” Regional WA “Regional WA has suffered in recent years, which has meant a plunge in building work.

“Their eagerness to build their dream home is matched by the eagerness of residential builders to get to work.”

“We are pleased the State Government has committed to continued investment in Royalties for Regions and allocated $5.6billion to regional infrastructure over the next four years.

Here are John’s views on other aspects of the State budget and how builders will be affected:

“The $2billion to be spent on regional roads including Bunbury and Albany ring roads and other key routes

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in the Pilbara, Kimberley and Goldfields will generate employment in the civil building sector. “The $13million dedicated to building a cancer facility at the Albany Health Campus will be a boost for commercial builders in the region.” Infrastructure “Master Builders look forward to the passing through Parliament of the important Infrastructure WA Bill 2019, which will provide certainty to the industry, create jobs for builders, subbies, suppliers, apprentices and the many associated with the state’s second largest employer. “Investing $30million to pave the way for redevelopment of the East Perth Power Station brings the hope of both an iconic precinct for the state and significant construction work for our industry. “We welcome the news that $164million will be spent on the Ocean Reef marina, starting with $5.7million in the year ahead.” Job creation “Employers who are not eligible for the Construction Training Fund can access the Employee Incentive Scheme, where $182million has been provided, creating opportunities for apprentices and trainees. “Master Builders has had positive discussions recently with the Premier and Treasurer and we congratulate them on a 2019-20 State budget which gives hope to our industry.” 13

REPORTS

WA’s first Baugruppe home project attracts a builder

Swedish sustainable construction methods and German group building ideas are coming together for a development in White Gum Valley. Swedish-backed Serneke Australia, which merged with WA building company Consortium Builders last year, has committed to building an 18-home development at LandCorp’s WGV precinct based on the German housing model called Baugruppe, which means building group. The plan, initiated by University of WA architecture professor Geoffrey London, is to bring together a group of owner/occupiers to take charge of their own housing development. The future residents work together to create customised homes and shared spaces while also cutting out costs such as developer’s profit, stamp duty and agent’s fees. Baugruppe WGV has worked with award-winning architect Michael Patroni, of Spaceagency, on the 14

design for stacked module homes on a 2000 square metre lot. “With no developer involved, the participants will pay approximately 10 per cent below market value for their new homes,” said Professor London. Serneke Australia Managing Director Andrew Abercromby, said the project was an ideal opportunity to show how environmental and social sustainability can be built into medium-density housing projects in Perth. The construction process has been planned to ensure much of the work is prefabricated off-site. “This will shrink the construction period from the planned 15 months to less than nine months, while minimising disruption to the existing neighbours, and substantially reducing waste,” Mr Abercromby said.

Artist’s impression of the Baugruppen development planned at White Gum Valley

“We will build to near Passivhaus levels, which will ensure a low-energy building that is comfortable year-round and much cheaper to operate than most Australian homes. “Perhaps most significantly, this project represents a model that can be adapted to all sorts of mediumdensity, residential infill developments throughout the metropolitan area. “The participants in Baugruppe WGV are a diverse group of people who will have individually owned apartments in addition to a common guest flat, community gardens and outdoor living including a barbecue area and a rooftop terrace.” Construction is expected to start in July. MASTER BUILDER WINTER 2019

REPORTS: BRANCHES

Building up Bunbury’s appeal The award-winning Dolphin Discovery Centre redevelopment is proving to be a big success in Bunbury. The centre, which recently won the title of best construction on a challenging site in the Master Builders-Bankwest South West Building Excellence Awards, is a popular destination for both locals and visitors to the region. Visitors enjoy the touch pool

The new centre, built by Perkins Builders along with local contractors, offers interactive and informative attractions including a touch pool, octopus feeding demonstration, 3D media room, multiple aquariums, a café and a gift shop. It is also home to a marine turtle rescue and rehabilitation facility, where stranded or injured turtles are restored to health so they can be released into warmer northern waters.

The dolphin experience remains central to the newly redeveloped discovery centre

Home improvement ideas on show in Geraldton

The new turtle rescue facility

More than 300 people were welcomed to the Home Renovation Expo held in Geraldton in March. Master Builders Mid-West regional manager Paul Kerr said exhibitors were keen to make the expo an annual tradition. It provided a link between people looking to smarten up their homes and the companies that could offer inspiration and turn visions into reality. “This event, now in its second year, will only grow larger as we refine it and add to the range of exhibitors,” he said. “Next year, we are looking to grow the expo to a twoday affair with interactive displays like try-a-trade.” A total of 40 exhibitors set up displays at the expo including builders, architects, banks, solar companies, plumbers, electrical firms, insurance businesses, skill hire and a variety of suppliers to the building industry.

More than 300 people attended the event, many looking for decorating or home improvement ideas.

Exhibits included a variety of products and services

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The latest building materials on display

Prizes given away included a stone-top bar, barbecues and solar products.

Exhibitors were pleased with the business opportunities presented by the Home Renovation Expo

REPORTS:BRANCHES

New tips for brickies in the North West The bricklaying best practice course held in Geraldton by the Master Builders North West branch won high praise. A group of 20 bricklayers, builders and supervisors completed the session in March, which was supported by Midland Brick. Here were some of the comments on the event:

got more out of that two-hour session “I than I did out of the whole building diploma.” are some changes that I need to “There pass on to my team immediately.” my bricklayers next “I really need to bring time.” supervisors should do “All bricklayersthisandcourse. ” The course was run by North Metropolitan TAFE senior bricklaying lecturer David Taylor along with Dean Pearson from the Australian Brick & Blocklaying Training Foundation.

The golfers relive their game highs and lows at the post-match gathering

Bunkers, birdies and bogeys in Albany Master Builders members from the Great Southern gathered at Grove Park Golf Links in Albany for a day out recently. The annual event is designed to get people from across the industry together to enjoy some fresh air and friendly rivalry. Match winners were Red Dog Building and Carpentry, while Ryde Building Company came second and third were Colab Company. The event was declared a resounding success and the players look forward to doing it again.

Winning golfers

On the golf course

David Taylor discusses best practice techniques

The course was well attended and well received

MASTER BUILDER WINTER 2019

REPORTS Mt Lawley MLA Simon Millman with the riders and Mates in Construction boss Brad Geatches, holding the charityâ&#x20AC;&#x2122;s banner.

Riders for life A gleaming collection of motorbikes was on display at Matilda Bay recently as riders gathered for the annual ride against suicide. The riders against suicide cruise through Perth.

More than 70 riders met on the Swan River foreshore for the Master Builders and Mates in Construction motorbike cruise to raise funds and awareness on suicide and mental health in the building and construction industry. Master Builders Director John Gelavis and Mates CEO Brad Geatches greeted the group and set them on their way to morning tea at Mandoon Estate. From there, the cruise continued around Perth and ended with lunch at The Saint George Hotel, Innaloo. A total of $19,819 was raised for Mates in Construction and thanks go to all the friends, families and colleagues who sponsored riders as well as official sponsor ReddiFund and corporate donors. The money will be used to decrease suicide rates and save lives in our industry. FURTHER INFORMATION: For more information about Mates and how their program works for building companies, call 9463 6664. The Mates helpline is also open 24 hours on 1300 642 111. WWW.MBAWA.COM

AWARDS

Top South West home brings the US to Australia The rural Waroona home consists of three areas - a main residence, pool wing and private villa

Imagine a grand Colorado ranch house fused with a stylish Hamptons holiday home then shifted across the world to a rural property near Waroona, and the result is the 2019 South West Best Country Home. The builder who proved capable of blending the various American influences into a superb Australian house was Palazzo Homes, who won the top home prize at the Master Builders-Bankwest South West Building Excellence Awards in March. The house consists of a five-bedroom main residence, pool wing and private villa, each with its own kitchen and living areas. Massive hand-built stone fireplaces in each zone bring rugged mountain homes to mind and yet work harmoniously with the fresh white tones and elegant style of US coastal playgrounds. Master Builders regional awards judge Charlie Baggetta said the workmanship was first-class throughout the huge building. “The house is very impressive, Palazzo can be proud of themselves,” he said. “The quality of work is exceptional throughout and some of the highlights are the custom-made cabinetry, beautiful stonework and imported slate roof, which lent itself to the Hamptons style. “The tiling across a huge area, including large bathrooms and the indoor pool, showed precision workmanship which was amazing.” As well as the top home prize, the residence won awards for best contract home in the over $3.5million category and trade awards for tiling and roofing.

The winning home makes a grand entry statement

MASTER BUILDER WINTER 2019

AWARDS “The design is good, the level of finish is very high and the building process has been well managed. It was spread out into stages, which allowed the facility to continue functioning while the work was going on. “I admire what the builder has done because the work is excellent in all aspects.” Master Builders Executive Director John Gelavis said the South West awards attracted more than 100 entries and the projects added up to a value of more than $255million. “The South West is a cherished part of our state and it is great to see builders in the region can be held in equally high regard,” he said. “The area is well known for its variety in scenery, lifestyles, housing and industries so it needs builders who can respond to that diversity by being adaptable and offering a wide range of skills.

Hocart Lodge in Harvey won the top commercial prize

The top commercial prize was won by Perkins Builders of Bunbury for the $15million expansion of Hocart Lodge in Harvey. Hocart Lodge was a family home until the late 1960s, when Annie Hocart donated the house and land in memory of her husband John to provide care for the elderly in the Harvey area. The growth of the organisation lead to the new 60-bed development, which has doubled the size of the facility while maintaining its homely atmosphere. Mr Baggetta gave the construction the highest possible praise by saying: “That’s where I’d like to live when the time comes.

The top home features a resort-style indoor pool

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“The Master Builders top WA home of the year award went to South West builder Paradigm Construction recently, which shows the high standards of the local industry. “All builders can be proud of their award entries. Each one represents months of planning, coordination of specialist trades and attention to detail in delivering the finished product. They have been judged on the excellence of every aspect of the construction by experienced and highly esteemed builders. “Anyone who is considering a building project, whether it’s commercial or residential, should seriously consider a Master Builders award winner.” The winning commercial project will be put forward to compete with the best across the state in the 2019 Master Builders-Bankwest Excellence in Construction Awards in July and the residential winner will progress to the WA Housing Awards next year.

Work on the Harvey aged-care centre was planned so it could carry on functioning throughout the building process

AWARDS

2019 Master Builders

Bankwest South West

Building Excellence Awards BEST COUNTRY HOME Palazzo Homes Waroona

BEST OVERALL PROJECT

$350,000 - $400,000 Ventura Home Group South West, Witchcliffe

BEST DISPLAY HOME

$450,000 - $550,000 Daly & Shaw Building, Abbey

BEST ALTERATIONS & ADDITIONS Cape Constructions Naturaliste

BEST ALTERNATIVE CONSTRUCTION Karamfiles Builders Deanmill

BEST CONTRACT HOMES UNDER $200,000 Plunkett Homes South West, Provence $200,000 - $250,000 Smart Homes for Living, Kealy Presentation of the 2019 South West Bankwest Best Project to Perkins Builders at the awards

$250,000 - $300,000 BGC Residential South West, Kealy $300,000 - $350,000 WA Country Builders, Dunsborough $350,000 - $400,000 Ventura Home Group, Quindalup $400,000 - $450,000 The Rural Building Company, Dunsborough $450,000 - $550,000 WA Country Builders, Noggerup $550,000 - $650,000 Hanrahan Construction, Margaret River

Master Builders President Jason Kunkler addresses the audience

$1MILLION - $1.5MILLION Karamfiles Builders, Deanmill

BEST DISPLAY HOMES $200,000 - $220,000 Dale Alcock Homes South West The Spinnaker, Port Geographe $220,000 - $240,000 Dale Alcock Homes South West The Franklin, Port Geographe $240,000 - $270,000 BGC Residential South West The Sunset Cove, Vasse $270,000 - $300,000 WA Country Builders The Manta, Kealy $300,000 - $350,000 Plunkett Homes South West The Augusta, Kealy $350,000 - $400,000 Dale Alcock Homes South West The Westhampton, Port Geographe

BEST ALTERATIONS & ADDITIONS $200,000 - $250,000 Resonate Homes, Bunbury $300,000 - $400,000 Hanrahan Construction, Margaret River

$750,000 - $1MILLION Challis Builders, Roelands

$500,000 - $750,000 Cape Constructions, Quedjinup

$1MILLION - $1.5MILLION Holst Design + Build, Dunsborough

OVER $1MILLION Cape Constructions, Naturaliste

$1.5MILLION - $2.5MILLION Cape Constructions, Eagle Bay

BEST MULTI UNIT DEVELOPMENT

BEST ALTERNATIVE CONSTRUCTION HOME

$550,000 - $650,000 The Rural Building Company, Roelands

$650,000 - $750,000 WA Country Builders, Waroona

OVER $3.5MILLION Palazzo Homes, Waroona

Apprentice of the Year Harley Depiazzi from Perkins Builders

$300,000 - $350,000 The Schlager Group, Dawesville

Perkins Builders Hocart Lodge, Harvey

Dale Alcock Homes South West The Westhampton, Geographe Palazzo Homes collect the best home award at the presentations held in Bunbury

$250,000 - $300,000 Resonate Homes, Margaret River

UNDER $200,000 Express Living Homes South West, Dalyellup

TWO TO FIVE UNITS BGC Residential South West, Busselton FIVE TO 10 UNITS BGC Residential South West, Vasse

BEST STATE BUILDING BGC Construction, Pingelly Health Centre

MASTER BUILDER WINTER 2019

AWARDS

Ready for guests

The gala event at Quality Hotel Lighthouse in Bunbury

BEST SENIOR PERSONS MULTI UNIT DEVELOPMENT

MEDIUM PROJECT BUILDER OF THE YEAR

Perkins Builders Hocart Lodge, Harvey

Plunkett Homes

Trade: Performance Pavings Builder: BGC Construction

BEST REFURBISHMENT OR RENOVATIONS

LARGE PROJECT BUILDER OF THE YEAR

EXCELLENCE IN CEILINGS

WA Country Builders

Trade: Geographe Ceilings Builder: Karamfiles Builders

Karamfiles Builders Southern Forests Medical Centre, Manjimup

BEST NEW BUILDER

BEST RETAIL BUILDING

INNOVATIVE CONSTRUCTION FOR SMALL LOTS

BGC Construction Vasse Commercial, Vasse

BEST OFFICE BUILDING BGC Construction Victoria Square, Bunbury

BEST INDUSTRIAL BUILDING $10MILLION - $20MILLION Perkins Builders Western Power Vasse Depot, Vasse $20MILLION - $50MILLION Perkins Builders Bannister Downs Dairy Creamery, Northcliffe

BANKWEST BEST CUSTOMER SERVICE SMALL BUILDER Karamfiles Builders MEDIUM BUILDER Plunkett Homes LARGE/VOLUME PROJECT BUILDER Dale Alcock Homes South West

SMALL BUILDER OF THE YEAR Cape Constructions

Hanrahan Construction

Express Living Homes South West Dalyellup

CONSTRUCTION ON A CHALLENGING SITE Perkins Builders Dolphin Discovery Centre Redevelopment, Bunbury

BEST WATERWISE HOME Resonate Homes Margaret River

EXCELLENCE IN ENERGY EFFICIENCY Holst Design + Build Yallingup

EXCELLENCE IN CONCRETING Trade: Huttcon Concrete Builder: Perkins Builders

EXCELLENCE IN CABINET MAKING Trade: Bay Cabinets Builder: Cape Construction

EXCELLENCE IN EXTERNAL FINISHES Trade: Facelift Plastering Builder: Holst Design + Build

EXCELLENCE IN BRICK & BLOCK PAVING

EXCELLENCE IN ROOFING Palazzo Homes

EXCELLENCE IN CARPENTRY Trade: RPK Carpentry Builder: Challis Builders

EXCELLENCE IN PAINTING Trade: Prism Painting Professionals Builder: Holst Design + Build

SILVER TROWEL AWARD Trade: Nathan Reynolds Builder: Karamfiles Builders

EXCELLENCE IN PLASTERING Trade: South West Quality Plastering Builder: Challis Builders

EXCELLENCE IN FLOOR & WALL TILING Trade: Tuscan Tiling Builder: Palazzo Homes

EMPLOYER TRAINER OF THE YEAR Dale Alcock Homes South West

APPRENTICE OF THE YEAR Apprentice: Harley Depiazzi Builder: Perkins Builders

CARPENTRY APPRENTICE OF THE YEAR Apprentice: Harley Depiazzi Builder: Perkins Builders

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AWARDS

How far do judges go to find the best buildings in the Far North?

The new Integrated Marine Operations Centre dominates the Port Hedland skyline

The high-tech facility controls shipping movements throughout the Pilbara

The search for the finest new buildings in the North West this year took judges on an epic journey of more than 10,000km while dodging a cyclone. Master Builders regional awards judge Charlie Baggetta travelled to Paraburdoo, Exmouth, Broome, Derby, Kununurra, Karratha and Port Hedland to judge the 2019 Master Builders-Bankwest Building Excellence Awards for the Kimberley and Pilbara regions. The hunt resulted in the top commercial award going to the new Integrated Marine Operations Centre in Port Hedland and the best home prize to an intelligently designed and expertly built house in Broome. â&#x20AC;&#x153;The judging started in Exmouth before Cyclone Veronica hit so we had to quickly rearrange flights and pick up the work again at the tail end of the cyclone, when we were driving through washed-out creeks and seeing the destruction left behind by the storm,â&#x20AC;? Mr Baggetta said. 22

Inside the Pilbara Ports Authority building

A grand view across the port from the operations centre

MASTER BUILDER WINTER 2019

AWARDS

Poolside at the winning home

“Of all the regional awards, we travel the widest distances to judge projects across the Kimberley and Pilbara areas.” The Bankwest Best Regional Project was Port Hedland’s new Integrated Marine Operations Centre built by Pindan Contracting. The high-tech facility includes a vessel traffic services centre that controls the working operation of several ports in the region, enabling the Pilbara Ports Authority to improve the safety and efficiency of marine operations.

Impressive outdoor entertaining area to suit the tropical location

The 2019 Kimberley Pilbara best home

It is also the centre for the harbour master, dredging management, port security, marine pilot briefing facilities and incident control. “The new operations tower dominates the skyline on the drive to the port,” Mr Baggetta said. “The builder had to consider the 100-year flood level, cyclonic conditions and other site conditions to establish starting levels. The degree of difficulty in the construction and high level of technology required were evident in the design of the building “The builder expertly handled the complexity of the building work to satisfy the client’s needs. It’s an impressive building which works efficiently.”

The house at Cable Beach in Broome features high-quality finishes

The winner of this year’s Roebuck Estate Developments Best Country Home Award was Broome Builders for a magnificent house at Cable Beach. “The high-quality finishes caught the judges’ eyes, from the herringbone-planked floor to the Queen Anne ceilings,” Mr Baggetta said. “Wall tiles in the living areas and timber screens in the alfresco entertaining areas were innovative and showed excellent workmanship.

Pindan wins the Bankwest Best Regional Project award

The sun sets over a table ready for guests as the Broome award night begins

The Best Country Home award presented to Broome Builders

Pre-dinner drinks at the Kimberley-Pilbara awards at Zanders at Cable Beach

“The high standards throughout the home were shown by awards for excellence in carpentry and tiling and best-appointed bathroom as well as the overall top home prize. North West Regional Manager Paul Kerr said builders, subcontractors and suppliers in the Kimberley and Pilbara showed dedication and resilience to produce exceptional work for their clients. The awards were held in Broome in May at Zanders overlooking Cable Beach. WWW.MBAWA.COM

AWARDS

2019 MASTER BUILDERS-BANKWEST BUILDING EXCELLENCE AWARDS FOR THE KIMBERLEY AND PILBARA REGIONS ROEBUCK ESTATE DEVELOPMENTS BEST COUNTRY HOME Broome Builders Frangipani Drive, Cable Beach

BANKWEST BEST REGIONAL PROJECT Pindan Contracting Integrated Marine Operations Centre Pilbara Port Authority

BEST CONTRACT HOMES $250,000 - $300,000 Tjallara Building Company Sariago Terrace, Broome $300,000 - $350,000 Tjallara Building Company Parris Way, Broome $350,000 - $400,000 Connolly Homes Parris Way, Bilingurr

$1.5MILLION - $5MILLION H & M Tracey Construction Juniper Derby Staff Housing

BEST AGED CARE BUILDING $10MILLION - $20MILLION Pindan Contracting Kununurra Residential Care

BEST PUBLIC USE BUILDING UNDER $1.5MILLION Kullarri Building Roebuck Bay Lookout $5MILLION - $10MILLION Indent Liyan-ngan Nyirrwa Cultural Centre

BEST OFFICE BUILDING $20MILLION - $50MILLION Pindan Contracting Integrated Marine Operations Centre Pilbara Port Authority

$10MILLION - $20MILLION Pindan Contracting Paraburdoo Community Hub Best Multi Unit Development

CWD Builders - Developers The Wickham Community Hub Broome Builders Frangipani Drive, Cable Beach

BEST APPOINTED KITCHEN Connolly Builders Tomarito Cresent, Bilingurr

BEST STEEL BUILDING PGM Constructions Yamasaki Vista, Bilingurr

EMPLOYER TRAINER OF THE YEAR MGC Building & Maintenance Glenn Schluter for the Wickham Community Hub CWD Builders - Developers

SMALL BUILDER OF THE YEAR Connolly Homes

BEST REGIONAL APPRENTICE

EXCELLENCE IN CABINET MAKING

Apprentice: Ethen McGinty Builder: KGT Employment

Trade: Western Formworx for Yamasaki Vista, Bilingurr Builder: PGM Constructions

BEST REFURBISHMENT OR RENOVATION

Trade: Fremantle Steel Fabrication Co for the Mercury Treatment Facility Builder: Pindan Contracting

SITE MANAGER OF THE YEAR

BEST MULTI UNIT DEVELOPMENT

$5MILLION - $10MILLION H & M Tracey Construction Derby Airport Upgrade

EXCELLENCE IN STRUCTURAL STEEL

Connolly Homes

Trade: GKM Cabinets for Tomarito Cresent, Bilingurr Builder: Connolly Homes

BEST REFURBISHMENT OR RENOVATION

Trade: Danâ&#x20AC;&#x2122;s Quality Painting & Decorating for the Liyan-ngan Nyirrwa Cultural Centre Builder: Indent

BANKWEST BEST CUSTOMER SERVICE

$500,000 - $750,000 Ningaloo Building & Renovations Jones Place, Exmouth UNDER $1MILLION MGC Building & Maintenance Calytrix Avenue, Kununurra

EXCELLENCE IN PAINTING

BEST APPOINTED BATHROOM

$5MILLION - $10MILLION Pindan Contracting Mercury Treatment Facility

BEST ALTERATIONS & ADDITIONS

Broome Builders for Frangipani Drive, Cable Beach

BEST INDUSTRIAL BUILDING

$450,000 - $550,000 PGM Constructions Yamasaki Vista, Bilingurr

OVER $850,000 Broome Builders Frangipani Drive, Cable Beach

EXCELLENCE IN CARPENTRY

INNOVATIVE USE OF BUILDING MATERIAL

$1.5MILLION - $5MILLION Crothers Construction Karratha Airport Hangar

$650,000 - $750,000 DLR Building Co Osprey Way, Exmouth

Trade: Nathan Vomiero for Frangipani Drive, Cable Beach Builder: Broome Builders

$10MILLION - $20MILLION CWD Builders - Developers The Wickham Community Hub

$400,000 - $450,000 Connolly Homes Tomarito Cresent, Bilingurr

$550,000 - $650,000 Connolly Homes Sands Street, Broome

EXCELLENCE IN WALL & FLOOR TILING

EXCELLENCE IN CONCRETING

EXCELLENCE IN ROOFING Trade: Elevate Metal Roofing for Yamasaki Vista, Bilingurr Builder PGM Constructions

EXCELLENCE IN CEILINGS

APPRENTICE ENCOURAGEMENT AWARD Apprentice: Jared Bergman Builder: Broome Builders

BEST CARPENTRY APPRENTICE Apprentice: Alexander Ripps Builder: MGC Building & Maintenance

BEST DIRECT INDENTURED APPRENTICE Apprentice: Brendan Nelson Builder: MGC Building & Maintenance

Outback Ceilings & Supplies for the Wickham Community Hub CWD Builders - Developers

BEST ELECTRICAL APPRENTICE

EXCELLENCE IN GLAZING

BEST INDIGENOUS BUILDING & CONSTRUCTION APPRENTICE

Trade: JML Group Holdings for the Integrated Marine Operations Centre Pilbara Port Authority Builder: Pindan Contracting

Apprentice: Ethen McGinty Builder: KGT Employment

Apprentice: Ethen McGinty Builder: KGT Employment MASTER BUILDER WINTER 2019

SPECIAL REPORT

Building with the right materials Non-conforming products are a huge problem in the building industry. There are widespread fears about combustible cladding following a fire at the Lacrosse apartment building in Melbourne in 2014 and the devastating Grenfell Tower blaze in London, which caused 72 deaths in 2017. These and other high-profile incidents have put building materials under the spotlight and it’s not just cladding that is causing concern. Glass sheets, electrical cabling and concrete waffle slabs are also on the watch list.

Master Builders’ legal partner Jackson McDonald has been following the Lacrosse case and warns that, although most of the liability has fallen on the surveyor, architect and fire engineer, it is likely that builders will be expected to have greater knowledge of product hazards in the future. Insurance professional Neil Gray adds that insurers are increasingly excluding materials from cover and NATSPEC advises on the serious consequences of nonconforming products. Here are our special reports on the issue, which is increasingly important to everyone working in the construction industry.

Professional responsibility will strengthen the building industry The Lacrosse determination has shown that builders will be held accountable for their role in the process of delivering a building. Non-conforming building products present a major problem in building and construction. Governments and other bodies have made it clear that builders need to accept shared professional responsibility if outcomes are not in compliance with the National Construction Code or if products and materials do not conform to the standards referenced in the construction specification. Non-conforming building products have serious consequences – whether physical, psychological or financial in nature – for the people who live, work and play in Australian buildings. For professionals like builders, there can also be heavy legal consequences. After the 2014 Lacrosse building fire in Melbourne’s Docklands, the building professionals involved in the project entered legal proceedings at the Victorian Civil and Administrative Tribunal (VCAT) that did not finish until February this year. The fire began at about two in the morning because of an unextinguished cigarette. French tourist JeanFrançois Gubitta had come home around midnight, smoked the cigarette on his eighth-floor balcony and left it in a makeshift ashtray. As Judge Woodward ruled at the VCAT hearing, “There is no evidence that Mr Gubitta knew or ought to have known that the external walls on the south wall of the balcony were combustible.” WWW.MBAWA.COM

Mr Gubitta was found potentially liable but was not required to pay any damages. That responsibility went primarily to the builder. The builder, the architect, the fire engineer and the building surveyor should all have known about the combustibility of the 400 square metres of cladding and should have acted to rectify it. Builder LU Simon was ordered to pay $5,748,233.28 in damages to the applicants (three owners corporations and 208 individual lot owners). In this instance, however, building surveyors Gardner Group, architects Elenberg Fraser and fire engineers Thomas Nicolas were ordered to reimburse LU Simon for a percentage of this cost: 33 per cent, 25 per cent and 39 per cent respectively. The remaining 3 per cent, although allocated to Mr Gubitta, was to be borne by LU Simon.

In Australia, part of that culture change is the National Construction Product Register (NCPR). The NCPR helps builders ensure their products and materials conform to the construction specification.

The issues of non-compliance and non-conformance continue to affect multiple areas of the building and construction industry. The 2018 report Building Confidence analyses compliance and enforcement systems in the Australian industry and offers 24 recommendations for improvement. Commissioned by the Building Ministers’ Forum in 2017, Building Confidence is primarily a reaction to the catastrophic Grenfell Tower fire in London in June that year. Authors Peter Shergold and Bronwyn Weir acknowledge the strong parallels between their report and the United Kingdom’s Independent Review of Building Regulations and Fire Safety, in which Dame Judith Hackitt writes that a major culture change is required.

The NCPR, developed by NATSPEC, is a searchable online database of building products with verified evidence of conformity. The register groups all conformance and certification information in one easily accessible place and informs building professionals of the importance of conformity and compliance. NATSPEC authenticates each product’s certification, verifying conformity evidence accredited by the Joint Accreditation System of Australia and New Zealand (JAS-ANZ), the National Association of Testing Authorities (NATA) and several overseas accreditation bodies due to Australia’s mutual recognition and multilateral recognition agreements. The building practitioner is responsible for using the product in a compliant manner.

The Lacrosse fire in Melbourne in 2014

SPECIAL REPORT The media have focused on fires with combustible cladding – aluminium composite panels with a polyethylene core. However, this is not the only example of an inappropriately used building product. In 2017 and 2018, glass sheets shattered and fell from high-rise balconies onto inner-city streets in Perth, Melbourne and Sydney. In the early 2010s, over 5500 kilometres of faulty electrical cabling was installed in homes around the country. It was later subject to a mandatory national recall. The cables had not been tested to Australian Standards, their plastic insulation coating becomes prematurely brittle and presents both an electric shock risk and a risk of fire.

further action and South Australia’s audit of over 1000 buildings will soon enter its third phase. Queensland has led the way in legislation with its chain of responsibility amendments. Titled the Building and Construction Legislation (Non-conforming Building Products – Chain of Responsibility and Other Matters) Amendment Act 2017, this act amends four previous pieces of legislation, including the Building Act 1975, to bring professional responsibility to the forefront.

Building practitioners’ professional responsibilities are under scrutiny as a state of hyperawareness continues. They have a professional obligation to provide a “standard of skill, care and diligence,” as stated in AS 4122, and state governments have responded with due consideration.

Under the Building Products (Safety) Act 2017 (NSW), the NSW Fair Trading Secretary has the authority to issue bans on any or all of a product’s use. In its response to Building Confidence in February this year, the NSW Government announced a package of reforms to improve building regulation. It will clarify the law regarding building practitioners’ duty of care, appoint a building commissioner, and require building practitioners with reporting obligations to be registered.

Audits of aluminium composite cladding have assessed the level of risk. Tasmania identified 43 buildings worthy of investigation, while Queensland’s audit reviewed 879 government buildings alone. The Victorian Cladding Taskforce issued 12 emergency orders for shortterm remediation work after assessing almost 1400 buildings. In Western Australia, 40 buildings require

As non-conforming building products can be hard to detect until they fail after a project’s completion, the NCPR plays an important role in helping builders work to the highest standards. Non-conformance and noncompliance put lives in danger and put businesses at risk of liquidation, Using NATSPEC’s database is a simple way to mitigate these risks. Builders are supporting the

NCPR for this very reason. Builders can encourage their preferred product manufacturers to make an application to the NCPR so that each product’s evidence of conformity can be verified and it can be included in the database. Although in its infancy, the NCPR already lists over 1000 products and will only continue to grow. The recent pattern of cladding-related fires in Australia and worldwide has revealed systemic problems of non-compliance and non-conformance in building and construction. The new emphasis on professional responsibility shows how industry awareness, the NCPR and improved enforcement systems all contribute to restoring confidence in Australian construction. NATSPEC is a not-for-profit, Government- and industryowned organisation. It maintains the National Building Specification. Master Builders Australia was a founding partner in 1975.

FURTHER INFORMATION: For more information and to check the conformity and validity of products, visit: www.ncpr.com.au.

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SPECIAL REPORT: INSURANCE

Modern building products cause growing alarm for insurers

New building products and how they are used have become major concerns in the insurance industry. There have been several large claims in Australia for losses Master Builders Australia Insurance Services state manager Neil Gray related to waffle slabs, electrical cabling and cladding. In response, insurers are increasing premiums and minimising their exposure to large losses so it is important for builders to make sure they have the right cover. Claims relating to the suitability of new products fall into the area of professional indemnity insurance, which covers any act, error, omission or breach of professional duty resulting in a financial loss to a third party such as a client. For builders, these claims traditionally relate to building designs or design modifications. Now, however, most large insurance claims are being linked to the building products, rather than the design. There has been significant change within the building industry in recent years. Many of these changes have meant builders being exposed to greater risk as a result of professional services or advice, even if it is obtained externally. WWW.MBAWA.COM

A few of these changes have more directly affected builders, like the increase in design and construct contracts in the commercial sector, with professional indemnity cover now being a common contractual obligation. Other changes have resulted in builders being involved in litigation due to allegations of vicarious liability, where builders are held responsible for claims arising as a result of the actions of their consultants or subcontractors. However, the emergence of new building products is by far the biggest area of concern and insurers are responding with a wide range of exclusions related to product specification. Different policies may exclude: • only non-compliant cladding • any and all non-compliant/conforming products • any claims related to products not being fit for purpose. Understanding which exclusion applies to a policy and how it can affect a business is critical to avoid an uninsured loss. As well as carefully reviewing any exclusions which apply, it is important for builders to have the right limit of cover. Many limits are ‘costs inclusive’ which means any legal defence costs form part of the limit. ‘Costs exclusive’ policies provide legal defence costs over and above the policy limit, effectively providing additional cover.

When establishing an appropriate limit, consider which type of wording is used to ensure legal defence costs don’t erode the level of cover. More broadly across the construction industry, premium increases and policy exclusions are also being applied to professional indemnity insurance for professionals including building surveyors, architects and engineers. Since these costs will likely be passed on to builders, it remains important to: • Ensure insurance provides an appropriate level of cover for projects • Seek legal advice on consultant agreements, which should contractually confirm the responsibilities of all parties involved • Check the professional indemnity policy covers contractual obligations. It is important to note that novated designs are an issue which is not often covered unless specifically requested. Uncertainty is generating volatility in the professional indemnity insurance market which is expected to continue for some time.

FURTHER INFORMATION: MBA Insurance Services recommend all builders to review their exposure and business activities to ensure they have appropriate protection. Call 9476 9898 for more information. 27

SPECIAL REPORT: LEGAL

Win for builders over liability for the Lacrosse tower fire The Victorian Civil and Administrative Tribunal recently handed down its decision in the highprofile case arising out of the Lacrosse tower fire in Melbourne. The case is Tom Jacobs relevant in Western Australia because it provides guidance on how the courts approach causation and apportionment between concurrent wrongdoers. The case (Owners Corporation No. 1 of PS613436T v LU Simon Builders Pty Ltd [2019] VCAT 286) focused on various parties including the builder and professional consultants and their conduct in the selection, approval and use of aluminium cladding containing a highly combustible, polyethylene core. The presence of the combustible cladding was found to be the primary cause of the fire in late 2014. Interestingly, the tribunal found that the builder was liable to the owners for breaching its statutory warranties (under the Victorian Domestic Building Contracts legislation) regarding suitability of materials, compliance with law and fitness for purposes – but it was the professional consultants involved in the Lacrosse project who ultimately bore liability. Judge Ted Woodward found that although the builder had breached the above warranties (which were absolute in nature) and was therefore liable to the owners, he had not failed to exercise reasonable care (i.e. was not negligent). This was because he had discharged his duty to exercise skill and care by properly engaging professional consultants to address Building Code of Australia compliance. The builder did not (and was not expected to) have the relevant knowledge and skill to perform this task. The builder gave evidence that aluminium composite panels had been in use since he attended university in 1980s and he had no reason to be concerned. Notably the owners did not press a breach of duty claim against the builder. This was a tactical decision so as not to engage the proportionate liability regime. These findings allowed the court to: • Order the builder to pay the owners 100 per cent of the loss suffered (potentially up to around $12m) • Order the various consultants (as concurrent wrongdoers) to reimburse the builder based on the relevant proportionate liability legislation. 28

Flammable cladding is a serious and widespread problem

The court held that the liability should be apportioned according to the chart on the right: The fire engineering firm breached its consultancy agreement by failing to exercise due skill and care and was primarily liable. The firm also breached its duty to warn and was guilty of misleading and deceptive conduct arising out of the contents of its fire engineering report. In making these findings the court focused on: • The scope of its engagement which involved carrying out a “full engineering assessment” • The contents of the relevant fire engineering report • The fact that the fire engineer was the only party aware at the time that cladding found to have been specified did not comply with the Building Code of Australia. The building surveyor also breached its consultancy agreement by failing to exercise due skill and care and bore a high proportion of the liability. The court focused on the surveyor’s conduct in issuing a building permit (and in doing so approving the specification) and in failing to notice the incomplete description of the cladding in the fire engineering report. The building surveyor was also guilty of misleading and deceptive conduct arising out of its issue of the building permit. The architect was similarly liable for breach of contract and negligence, primarily due to inadequate design. The architect was noted as the party that initially specified the indicative cladding type and approved a sample in an unqualified way and was the “head design consultant” for the project.

The court noted that the contractual arrangements between the builder and consultants were commercial arrangements between sophisticated professionals with considerable industry experience. While this case is not binding precedent on the courts of Western Australia (and is based on Victorian legislation), it demonstrates how the courts approach complex issues of causation and apportionment. For builders, it is important to note that the positive decision resulted from: • Carefully crafted contractual documents which created a clear chain of responsibility in respect of Building Code of Australia compliance • The fact that the builder did not have the relevant knowledge that the consultants had or ought to have had. The decision might be different now when builders would be expected to know about the dangers of using combustible cladding/materials. We note that it is perhaps inevitable that this decision will be appealed by one or more of the parties found liable. Watch this space.

The court criticised the architect’s focus on the design responsibility of the builder under a design and construct contract with the developer. This did nothing to limit the architect’s own design responsibility under its consultancy agreement. MASTER BUILDER WINTER 2019

FINANCE

Brokering a good finance deal proportion of their business with lenders other than the major banks and their affiliates.” Source: Mortgage and Finance Association of Australia IIS Report 5th edition, produced by CoreLogic

Launch Finance directors Dean English, Duncan McKinnon, Joe Del Borrello, Steve Milligan and Warrick Greaves

The lending market has experienced a lot of changes in recent months, leading to tighter restrictions on borrowing money. This has made the expertise of a finance broker more important than ever. A broker will navigate the market and find a suitable, competitive product for the lending needs of every client. There are often special offers available in relation to lender policy, rates, fees, features and incentives that may make a specific loan more attractive. A professional finance broker is informed of these opportunities on a daily basis and acts on the behalf of clients to find the right finance solution for each one. Here are some of the things often said about finance and the reasons why a broker can help: “I’ve been with my current lender for many years, we have a great relationship and I’m well taken care of.” WWW.MBAWA.COM

That may be true but over the last few years, due to increased regulatory oversight, lenders have had to significantly tighten their lending policies, meaning that a deal that might have been approved in the past, may no longer meet today’s criteria. A broker will know, before lodging the application, which lender is likely to approve your application and which lender may not. Have you checked to see if there is a better loan product out there for you? Your broker will do that for you. There are many second-tier non-bank lenders in the market that can offer competitive solutions compared to the big four banks. These non-bank lenders access the market through finance brokers and, as a result, drive competition to help consumers find a fairer deal. The most suitable product may be with one of the major lenders but having options is an empowering position to be in.

How can a finance broker save me time? The importance of lodging a successful application the first time can often be crucial to ensuring finance, settlement and building deadlines are met. There have been many regulatory changes in the market that affect loan credit assessment, particularly those placed on lenders by the Australian Prudential Regulation Authority. Some examples are: • What type of income lenders will accept or not accept • Verification of expenses • Credit requirements for intricate investment or construction lending • Restrictions in relation to interest only and investment lending. Avoid the stress of suddenly finding you no longer fit your current lender’s credit criteria and risking your application for finance being declined. Your broker will assess your circumstances and give you the best chance possible of getting your loan approved the first time. This saves time and stress and ensures you meet your finance deadlines, helping you progress with your purchase or project. FURTHER INFORMATION: To review your current business or personal finances or discuss an upcoming project, you can find us in the Master Builders office or call 9476 9898. Launch Finance Pty Ltd (ABN 17 163 528 701) is an Australian Credit Licensee (Australian Credit Licence Number 495354).

“Over the last five years, mortgage brokers have moderated the dominance of the major lenders and increased competition by concluding an increased 29

HEALTH The WesTrac Cat team proudly show their blue gear at the Super Pit gold mine in Kalgoorlie

One workmate in seven will get prostate cancer but how many will survive? Prostate cancer is the most common cancer diagnosed in men but there may be no symptoms in the early stages. How can the disease, which kills nine Australians a day, be stopped if men don’t know they have it? Leading Australian urologists recommend a PSA blood test as the best way to monitor prostate changes and the best chance of surviving prostate cancer. Prostate Cancer Foundation state manager Allison Stephens sees the male-dominated building industry as an important ally in helping to beat the disease. “The greatest challenge in beating prostate cancer, apart from finding a cure, is encouraging Australian men to get tested,” she said. “Ask your workmates if they have been tested. The more discussion there is, the more a man will think of a PSA test when with his GP. “If detected early, prostate cancer can be cured.” 30

Donations to the foundation are used to fund research, encourage men to be tested, deliver evidence-based information, provide specialist nurses to patients and connect them to peer support.

“Together with PCFA, we provide this opportunity for businesses and their employees to connect with the community and support Aussie men and their families while raising prostate cancer awareness.

Another way to help men to think of their prostate health is the Blue for Blokes initiative developed by Safeman Australia to raise both funds and workplace awareness for the foundation.

“There has been a great response from businesses who have a genuine desire to make a difference, but what’s more astounding is the grand interest from employees wanting to support the cause. We’ve found the main drive has been employees urging their employers to join Blue for Blokes because it is something they are passionate about.

Safeman Australia is the largest independent supplier of personal protective equipment and workwear in the country. They have created a range of Blue for Blokes gear and aim to get Australian men and women out of their normal work wear and into PCFA-branded wear, with a fixed sum from every sale going to the foundation. Safeman WA sales manager Dean Smith says the support from businesses, employees and the wider community has turned Blue for Blokes into an immense success. “We recognised we were in a prime position to positively engage with working men and women in mostly male-dominated industries such as mining, construction and oil and gas,” he said.

“Workers are taking great pride in wearing Blue for Blokes gear in the workplace and it’s an extremely effective way for businesses to increase employee engagement. This also gives a sense of purpose and community spirit in the place of work, while strengthening the work culture.”

FURTHER INFORMATION: Anyone interested in supporting Blue for Blokes can find the full range of PCFA workwear at www.blueforblokes.com.au or email enquiries@blueforblokes.com.au. MASTER BUILDER WINTER 2019

HEALTH

Toes company on the catwalk Steel toes and stilettos belong at opposite ends of the shoe spectrum but they came together for an enjoyable event and a serious purpose recently. The inaugural Steeltoes & Stilettos function aimed to boost understanding of asbestos safety in an entertaining way. More than 30 tradies in brand new Steel Blue boots were paired with professional models in flimsier footwear and sent out onto the runway to face a lively crowd from the WA building industry. They were supporting Reflections, a non-profit group focused on reducing the impact of asbestos on the community. The tradies, who had had been ‘dobbed in’ and sponsored, competed in heats where sparkies, chippies, plumbers, painters, fixers, finishes and plasterers strove for grand final glory.

Cabinet maker Dianna Evans with her model companion on stage

Electrician Matt Rogers was chosen as the 2019 Steeltoes & Stilettos Model Tradie in the gala runway final, and carpenter Thomas Kelleher was the top fundraiser among the tradies. Tom joined the event in memory of his grandad, who lost his life to the asbestosrelated disease mesothelioma. Reflections founder Jo Morris was delighted by the success of the event, which raised more than $28,000. “We wanted to raise awareness of an ongoing, challenging issue, by creating a vibrant, fun event as the stage - and it worked beautifully,” she said.

Electrician Matt Rogers and his model partner strut their stuff on the catwalk

“The importance of asbestos safety is still crucial today. With the highest rates of mesothelioma in the world and significant amounts of in-situ asbestos in our built environment, asbestos has left a devastating legacy in WA. Ongoing awareness raising, both in the industry and to the wider community, is essential.” Ms Morris and her co-host for the evening, Dale Alcock, both lost their fathers to asbestos-related disease. Master Builders supported the event and Executive Director John Gelavis said everyone in the building and construction industry should understand the risk of dealing with asbestos. “Events such as these bring the asbestos message to a wider audience and help make young people aware of the terrible outcomes associated with this dangerous substance,” he said. Other sponsors included ANZ Enviro, Steel Blue, Clipsal by Schneider Electric, ABN Group, Planet Acoustic & Architecture. WWW.MBAWA.COM

The runway grand finalists

Co-hosts Dale Alcock and Jo Morris

FURTHER INFORMATION: go to www.reflections.org.au and www.steeltoes.org.au. 31

HOUSING

Building rules for fire-risk areas need a makeover

of dwellings constructed were able to comply with bushfire construction requirements. This is alarming but suggests very strongly the viewpoints our association maintained all along are true. The report itself states: “It should be noted that low compliance with bushfire provisions does not necessarily mean that a building would be lost to a bushfire. Similarly, full compliance with bushfire provisions does not guarantee a building’s survival”.

There’s no guarantee a building will survive bush fire even if it complies with the requirements

It is time for a renovation to the laws on planning and building in bushfireprone areas. Master Builders has been talking to members, volunteer firefighters and industry parties since 2016 and they are all agreed that the previous government’s legislative changes went too far and are not likely to produce the desired outcomes for life safety. Housing Director Jason Robertson

We see the need to improve resilience within communities and concentrate on life safety measures. At the time, Master Builders asked the government to defer the legislation, expressing our concerns on how it was to be implemented. We formed a committee alongside the WA Building Commission, WA Local Government Association and other stakeholders to work towards solutions. Now is the perfect opportunity for the State Government to review the policy and make the right changes for all parties, especially the general community. Our discussions with members show the laws have thrown up significant costs for builders and the wider community. Builders have given us countless examples of existing, highly developed urban subdivisions where complying with the rules, including Bushfire Attack Level (BAL) assessments, has added thousands of dollars in costs. This has included development builds in areas along coastal strips. The impacts have been higher in regional areas, with properties near wetlands and water courses having BAL assessment ratings of flame zone, along with potential costs of tens of thousands of dollars. Master Builders warned the government of industry concerns over uncertainty with interpretation of the legislation, the difficulties of many local governments in

enforcing it and the general public not being aware of the impacts and cost consequences. There are three main principles for achieving fire safety in any building design: • Safeguarding the occupants • Facilitating firefighting • Preventing fire spreading between buildings or structures. Regrettably, evidence suggests the legislative changes implemented in 2016 do not address these core issues. If we accept safeguarding the occupants is the primary principle, with asset protection through firefighting measures secondary, there is still a problem within countless subdivisions where the risk is high from having a single exit and entry point, the risk of massive fuel loading and other compounding issues. There are plenty of examples where resident evacuations have been affected by understandable panic when the single access point has been blocked by the fire itself or people attempting to flee. The application of building construction standards for bushfire prone areas does not address these important issues. The legislation leaves room for unintended consequences. In building to a construction standard, some may see it as a guarantee they will be safe in the event of a fire and choose to stay if there is a blaze in the area. It could be argued this is unlikely but the possibility exists and it is important to consider. If homeowners believe their houses have special construction measures for bushfire, they may see it as a safeguard. The simple fact is, no building is completely fireproof. The Department of Mines, Industry Regulation and Safety earlier this year completed their audit program of inspections into bushfire compliance in Western Australia. The report found less than 57 per cent

When it is considered some homeowners will spend tens of thousands of dollars to have such provisions but without any guarantees of effectiveness, something needs to change for the better. And what of the ethical conversation or the debate over individual choice? The legislation has likely meant some people have been unable to build their dream home in the location of choice, even though it previously could have become a reality. In both metropolitan and certainly regional areas, markets may further suffer with insurance premiums skyrocketing, forcing even more financial strain on homeowners. Fire safety is a dovetail between building design and holistic safety management. Simply put, the best way to manage building activity and construction regarding fire safety, is to prevent fires from starting in the first place. If we accept one of the objectives of the building code is to protect the dwelling from the effects of a bushfire and reduce the likelihood of fatalities arising through people not being able to evacuate, it still stands to reason that “fireproof” buildings, are not the solution for fire safety. Solutions which are being recommended by Master Builders include a wholesale review of the mapping. We would like to see different requirements for metro and regional areas so appropriate BAL adjustments could take metro conditions into account such as quicker access to fire services and easier ways to get out of a fire area. We also promote discretionary or transitional clauses so changes can be made, for instance, if further clearing is done in a subdivision so a property with a high BAL rating becomes a lower risk. And we want to add the possibility for non-mandatory application of building standards for certain BAL ratings, including where a Class 10c building (private bushfire shelter) can be demonstrated as a viable alternative. We will continue to lobby the State Government to ensure the right changes are enabled.

MASTER BUILDER WINTER 2019

LEGAL Builders can avoid copyright infringement by creating plans based on the ideas of clients instead of relying on someone else’s drawings or written work

The copyright

and wrong of design How can builders protect themselves from copyright infringement? What happens if a builder draws up plans but someone else wins the job based on them? It’s important to understand copyright in design, and how businesses can be affected. Anecdotally, Master Builders has heard of cases where an owner has sourced a design from the internet and then shopped among builders for refinements to the plan. Frighteningly, there have also Master Builders Legal Director Marianne Rose been reports of owners being coerced into using a specific builder on the basis that they would be sued for copyright infringement if they went with another company. This issue goes to the heart of integrity of our industry. To understand it, we must first put to rest a common misconnection that a builder can avoid a claim of copyright infringement by merely changing the design by 10 per cent. This is incorrect. The copyright law in Australia is quite clear – it creates a legally enforceable right that protects a broad range of works, including architectural and building designs, plans, drawings and detailed descriptions from being: • Reproduced in a material form • Published • Communicated to the public. The question builders must ask themselves is whether a “substantial part” of the material has been copied or reproduced. For example, Mr and Mrs Patel see a plan they like on the internet. They show it to their builder and ask for a change in the design by adding an extra bedroom. However, the overall house design is still the same as the original plan. This should sound alarm bells for the builder with regard to copyright infringement since the overall design is too like the original plan. Even though the plan is from the internet, the builder should realise it is could be subject to copyright. Copyright does not protect an idea or a concept, it’s the written expression that is protected. This means that where a builder has designed a plan based on an owner’s idea, rather than drawings, this would help avoid a claim of copyright infringement. We recommend that an owner does not provide original drawings to a builder. Rather, they explain their idea - this way the concept is based on the builder’s original efforts envisioned jointly with the owner rather than on another builder’s artwork. This strategy is recommended to protect builders: • Seek permission. Where the design comes from another source, seek permission to use the design through a licence or assignment. There may be a cost involved but if in doubt speak with the original design owner. • Protect your design. It is important to protect yourself and your design because even though there could be an implied licence in design, builders are not WWW.MBAWA.COM

advised to rely on implied copyright. Rather, the best practice where a client has commissioned a design is to have a written agreement. We recommend builders include a disclaimer at the bottom of the plan that states that any plans, drawings or designs do not grant or imply a licence. • Demonstrate your rights. To protect their work, a builder should demonstrate what belongs to them. Consider providing designs on your letterhead, with your name and logo on the page. Best practice would be to use the © symbol because this reminds clients that the design is subject to copyright. With the Master Builders WA restructure, a legal department has been established under Legal Director Marianne Rose, where the team will be discussing a range of issues and guidance services to assist our members overcome and understand common challenges facing the industry. To suggest a topic or understand this matter further, please get in touch with Marianne and her team.

The information contained in this article is informative only, does not constitute legal advice, nor is it intended to be a substitute for legal advice. Master Builders WA only provides general guidance to its members and does not take into account specific circumstances.

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BUILDING BUSINESS

Gassing with George about good energy choices A huge amount of time and effort goes into building a new home but Master Builders and Alinta Energy can help. Master Builders recently talked to Alinta Energy’s Business Development Manager, George Papos about some of the common industry pain points and considerations during the building process. Here George answers the key questions and gives his top tips to make life a little easier for WA builders and their customers. What is your role at Alinta Energy? The focus of my role is to ensure our key partners in the residential construction market are informed and up to date on the WA natural gas market and the processes and products available from Alinta Energy. I’m there to provide our customers with value-add solutions and ensure the gas connection process is fast and painless. What is the most common question you get asked over the phone or while you are out on site? I’m commonly asked questions about the process of connecting gas to homes for the first time. It can be difficult coordinating all the stakeholders involved in the build process to ensure the gas meter is installed and ready for use in a timely manner. With years of experience in dealing with new connections, our local Perth-based service team are happy to help. What is your view on the current WA gas market? We are very lucky to have one of the world’s largest natural gas resources right at our doorstep in the North West Shelf. Unlike other fuels, it is a convenient, affordable and a reliable source of energy for both cooking and heating conveniently supplied directly into our homes. We believe strongly in using a local energy resource because it helps to support jobs in our local community.

Alinta Energy’s Business Development Manager George Papos on a site visit to deal with gas connections

What are the biggest benefits of connecting gas to a new home? There is a common saying “don’t put all your eggs in the same basket” and having gas connected to a home as an alternative source of energy gives the home owner more options for cooking, heating and hot water. Everyone is different and we use energy in different ways so it’s good to have the flexibility to choose between electricity and gas to suit our individual needs and budget. Tell us George’s top tips for someone building a new home and what people should watch out for throughout the home building process. Consider features that will add value to a home that are easier and more affordable to include at the time of building rather than trying to fit in retrospectively. An example is installing a gas bayonet in the alfresco area. This will add value and convenience to the home at minimal cost. Building a new home and seeing it take shape should be an exciting time of life. It’s important to have the right people as guides through the process to keep it stress free. Alinta Energy has been connecting new WA homes to natural gas for more than 23 years. With that track record why trust anyone else with a new gas connection?

FURTHER INFORMATION: please feel free to connect with me on LinkedIn, contact me by mobile on 0416 206 135 or email george.papos@alintaenergy.com.au 34

If you employ workers in the construction industry you may be required by law to register in the Construction Industry Long Service Leave Scheme. Find out by visiting www.myleave.wa.gov.au or by calling 08 9476 5400.

MASTER BUILDER WINTER 2019

BUILDING BUSINESS Many families turn to Keystart to help them get into a home of their own

As a result, we conducted extensive customer research and over the weeks and months ahead we will be making a few changes. The first change is an update to our brand. It has served us well but customers told us it was a bit outdated, so we have refreshed it to better represent what we stand for. We are also launching a new website. The old one just did not perform well enough, especially with mobile devices. Given around 60 per cent of all interactions with the website are via mobile devices, this was a problem. The new site has much clearer content, better tools and will allow us to provide new features over time more easily.

Keystart holds steady through 30 years of WA ups and downs Western Australia has a boom and bust reputation but we’re not alone. Many economies around the world with strong mining and oil and gas industries have similar cycles and this tends to exacerbate the cyclical nature of the property industry, too. One of the things that has helped to insulate us in Western Australia has been our ability to keep younger, often first-time, buyers in the home market. Government incentives play a part but so does availability of credit. Keystart has been playing a critical role in providing finance options to middle-and-lower-income earners, even when traditional lenders adjust their criteria to reduce their exposure.

This year sees Keystart turn 30 years old. It is a model that has proven its worth and we continue to deliver value to: • Individuals, by making their dream of affordable home ownership a reality • The community, by helping individuals and families put down roots and connect with others in new and established suburbs alike • The building industry, by ensuring qualified buyers have the funds they need to build their dream homes • The West Australian government, by generating returns for the Housing Authority to support their social housing policy priorities.

The other big change is that we are relocating to new offices in Subiaco that give us better transport links, improved amenity for our people and bring us closer to many of our building industry partners. What we do remains as relevant today as has been since 1989 and we will continue to invest to make sure we meet the needs of the community. We look forward to continuing to work with the building industry over the next 30 years to make the dream of affordable home ownership a reality for more people.

After 30 years, it was time for Keystart to take stock and think about what we need to do to continue to deliver this value to our stakeholders for the next 30 years.

INDUSTRIAL RELATIONS

Mixed results from industrial relations review Industrial relations reform is moving forward in WA and some of the suggestions offered by Master Builders to a recent review have been agreed but others were less successful. Industrial Relations Minister Bill Johnston issued the final report of the Ministerial Review of the State Industrial Relations System in April, with 85 recommendations. Master Builders provided a comprehensive submission to the review. Construction Director Kim Richardson

A major aim was to avoid an extension of the definition of employee to cover small sub-contractors who work in the local residential construction sector. We are pleased to say the final report makes no recommendation to do so. WWW.MBAWA.COM

Entry to construction sites is an issue in the recent WA industrial relations review

Master Builders also submitted the view that state union officials must meet a fit and proper person test to be issued with a state union right of entry permit but this was rejected by the reviewer.

A controversial recommendation has been made to allow state union officials entry into private homes dealing with domestic employment. This recommendation has attracted strong criticism.

A third key submission was the introduction of safeguards like the Federal work health and safety laws to stop union officials using photos taken during investigations about alleged safety issues for purposes other than the investigation. The final report makes this recommendation, which we welcome.

Master Builders cautioned against this course of action in its submission, proposing an alternate pathway of authorising state industrial inspectors to enter private homes since they must be fit and proper persons to be authorised as inspectors and must follow strict protocols which do not apply to union officials. However, this approach was not taken up. 35

Member Benefits Scheme SAVE WITH A MASTER BUILDERS MEMBERSHIP Master Builders members can save through our growing Master Builders Member Savings Scheme. To access our range of savings visit www.mbawa.com/become-a-member/member-savings/

Coming Soon

KEY CONTACT

Marketing & Partnerships Manager, Kelly Matusik Ph: 9476 9800 or E: kelly@mbawa.com MASTER BUILDER WINTER 2019

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Wildcard wins tennis championship

Players gather on the beautiful Kings Park Tennis Club courts

When James Moss made his Master Builders tennis debut he caused an upset among die-hard players by triumphing in the tournament.

media, netball and Master Builders schedule. Being a grandparent may however, challenge his training regime for the next encounter.

The late withdrawal of Steve McConkey (Multiplex) from the Master Builders Butler Settineri Corporate tennis afternoon in April provided wildcard James from Canberra with an unexpected opportunity to show his talent.

Seventh place was shared by the Italian connections of Joe Gangemi (Butler Settineri) and Tony (The Sledge) Tarzia (Coastal Tiling) with 13 games. With more serving practice Joe will be a threat to the more seasoned players whereas Antonio may well have peaked as he struggles to perform at his previous best.

He won the event with 18 games over four sets to his credit. This is the first time a debutant has won at this level. Kendal Moss (Multiplex), James’ mother, came a close second with 17 games due to her consistent performance on the lush green lawns of Kings Park Tennis Club. Kendal and James were unbeaten playing together. Ben Keane (CHDWA) played very consistent tennis and has lifted his game following his return to competitive pennant tennis. Winning 16 games through some impressive aces saw him take third prize. Master Builders Director John Gelavis and MBAIS Executive David Coomblas shared fourth place with 15 games despite slow starts. Both showed enormous potential and will be hard to stop with more coaching and training. Reigning champion, Robert Shaw (Daly & Shaw) couldn’t repeat last year’s outstanding form and had to settle with 14 games in the middle of the field. This was an excellent result following Robert’s busy 38

Former Director Michael McLean drew some tough opponents and finished with a disappointing score of 12 games. The handicappers will need to reassess this veteran’s form on the retirement circuit before the next tournament in November. Bringing up the rear were wildcard Bob Wegner for Michael van Dongen and James Moore (Cbus) with 11 games each. Bob and James showed glimpses of style and tenacity but drew some tough competition during the afternoon. The idyllic weather conditions brought out the best in all players and the tennis was of a remarkably high order which augurs well for their season. Master Builders auditors Butler Settineri have agreed to continue sponsorship of the next corporate tennis afternoon on November 27. Members are encouraged to play. Big names like Spadaccini, van Dongen, McConkey, Skipworth, Coghlan, Millard and Salamone are likely to be available for the next grand slam.

Master Builders welcomes new members Absolute VR AG Trusses Alinta Energy Asante Homes Aspire Homes and Renovations Aussie Patio Designs Bayview Constructions (WA) Pty Ltd BD Living Pty Ltd Ben Lawrie Projects Bert's Building Company Pty Ltd Blanc Architectural Homes Browne Master Builders Pty Ltd Bunnings Trade WA Buy Safe Property Solutions Christian Bridson Building Content Living the Homes Builders CPR The Outdoor Centre Daniel Radelich Design Maintain Construct Pty Ltd DMS Commercial Pty Ltd Dynamite Concrete Pty Ltd EJMJ Group Pty Ltd GB Construction & Investments Pty Ltd Great Southern Civil & Building Hugh Davis Consulting Indent Pty Ltd Inertia Projects ITC Plumbing Solutions JBE Construction Johns Lyng Insurance Building Solutions (WA) Pty Ltd Kerry Micke Designs Launch Finance Pty Ltd Letz Construct Pty Ltd Mettris Construction Millbrook Construction WA Mynott Construction Nautilus Building & Developments Pty Ltd Niche Double Glazing Opes Construction and Building Supplies Pty Ltd Outdoor Walls n Floors PCS Group WA Petgia Cabinets Phoenix Painting and Decorating Albany Pilbara Building Company Pty Ltd Poletti Built Pty Ltd Presidential Building Services Pty Ltd Purpose Built Constructions R & R Constructions WA Pty Ltd Rizzani de Eccher Australia Pty Ltd Studio 3 Landscape Pty Ltd Teakle & Lalor Thompson Building Industries Watershed Constructions Pty Ltd

MASTER BUILDER WINTER 2019

MEMBERSHIP

Holes in Doug’s plan

As we say goodbye to one staff member, it’s hello to another. In the Perth office, Neil Gray has been welcomed as the new Master Builders Association Insurance Services state manager. Neil joins the team from Mason Gray Insurance and Risk, and Gallagher’s. He also adds to the international flavour of the office and brings a trace of the British midlands to the accent mix.

Life cycle

Graeme, second from right, with his teammates

Master Builders regretfully farewell Doug Backhouse and wish him well in retirement

Most of us would flinch at the idea of cycling about 150km a day for five days but Master Builders Business Director Graeme Dix met the challenge recently when he completed the Hawaiian Ride for Youth.

Top of the bucket list for most keen golfers when they retire is a hole in one but that’s a goal Doug Backhouse has already achieved so he’s looking wider for inspiration.

The ride from Albany to Perth is one of Australia’s top charity events. Riders visit towns in WA's SouthWest, Great Southern and Wheatbelt, stopping at high schools to talk about issues of youth suicide, depression and self-harm as well as services offered by Youth Focus.

Doug, who has been Master Builders GoldfieldsEsperance regional liaison officer for the past six years, will retire at the end of June. Having already won the holy grail of golfing, Doug says he and wife Gilly look forward to spending more time relaxing and travelling, including trips interstate to visit grandchildren. “I’ve already had a hole in one but Gilly and I both play golf, so we’d like to do some cruising and golfing holidays. “Vietnam is on the bucket list, along with other places we have never been.” Doug says he has enjoyed spending time with members in his local Esperance area and getting to know people in the Kalgoorlie region

Graeme was one of six riders in the Channel 9/HBF team, part of a peloton of 55 riders who took the coastal route. quality of the homes, especially those which have won major awards.

“We covered 730km in five days via Walpole, Pemberton, Busselton, Mandurah,” he said.

“Another standout was the waterfront development in Esperance, which won national awards.”

“The ride was a tough one, with some pretty long days but it was very rewarding. We had visits to multiple schools in the country towns and spoke to the students about youth suicide and how to engage in getting help if they were having difficulty.

Master Builders Business Director Graeme Dix thanked Doug for his professionalism and dedicated service in the region and said he would be missed by all.

“I’m proud of the relationships I have developed and making people aware of the importance of Master Builders,” he said.

“Doug has always been very respected by our members and Master Builders staff. We hope he has a fantastic retirement and his golf game improves,” he said.

“All the people on our route were a fantastic bunch and we all had a great time. I would like to thank everyone who donated to our team. We raised more than $40 000 and the ride raised well over $2.2million in total to help our youth.

“A highlight has been going around the region with the judges, looking at the work they do and seeing the

After all, there’s something even better than a hole in one. Scoring another one.

“I would recommend it to anyone who wants to give it a go.”

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Master Builder Western Australia Winter 2019

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Top South West home brings the US to Australia.