SA Builder Autumn 2019 by arkmedia4217

THE OFFICIAL JOURNAL OF THE MASTER BUILDERS ASSOCIATION OF SOUTH AUSTRALIA

AUTUMN 2019

BUILDER

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CONTENTS

AUTUMN 2019 Cover image: St Andrew’s Hospital Eastern Clinical Development, Adelaide by Mossop Construction+Interiors

Inquiry into Government procurement

Regulars

Features

FOREWORDS CEO’S Report

FEATURES Strong Building, Strong Economy

President’s Report

What builders want from the next Federal Government

President: Peter Salveson Deputy President: Andrew Marshall

UPDATES Innovative construction lending options

HIVIZ Women Building Australia

New Staff

Master Builders SA Catch of the Year

Rivergum Homes supporting the grass roots

South Australia’s building sector to raise the bar on quality and accountability 14

Inquiry into Government Procurement

Toyota Gold Fleet Discount

Industry forecast

What our pollies say

Creating new opportunities for South Australians

Marshall and Brougham 70 years of quality building

MEMBERSHIP Host Trainer of the Month

Apprentice of the Month

Increasing opportunities for builders to engage with Chinese community

Seasonair continues to celebrate industry success

Timber flooring: Are your specs up to date? 33 Metricon VIP networking event

WHAT’S NEW

ADVERTISERS’ INDEX

Stop union bullying

Labour fails its own test

Home batteries putting control back into the hands of households

Vice Presidents: Christopher Leopold, Enzo Zito Past President: Richard Bryant Councillors: Troy Klemm, Jock Merrigan, Helen Papas, Nick Abley, Morry Canala, Jan Goetze, Tom Emmett, Neil Mossop, Fred Pascale, Patrick Innes, Jeffrey Piotto. Master Builders South Australia: PO Box 10014 Gouger St. 47 South Terrace, Adelaide, South Australia Phone: (08) 8211 7466 Fax: (08) 8231 5240 Email: buildsa@mbasa.com.au Executive Editor: Will Frogley

Published by: ark:media Phone: +61 7 5629 5310

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Email: marketing@arkmedia.net.au

Web: www.arkmedia.net.au Managing Editor: Susan Guilfoyle Design Team: Andrew Crabb, Avacyn Chidzey Advertising Manager: Yvonne Okseniuk

Advertising Sales: Steve Clark, Rose Delosreyes

SA BUILDER AUTUMN 2019

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CEO’S REPORT

Master Builders must be active in raising industry standards February’s Building Ministers’ Forum in Hobart focused primarily on the safety of Australian buildings and public confidence in the building and construction industry. Recent events, in particular the Opal Tower in Sydney, have hastened the desire of state and territory governments to implement the recommendations in the Building Confidence Report (“Shergold Weir Report”) that was commissioned by the Building Ministers Forum. There is a strong appetite for all practitioners to undertake compulsory Continuing Professional Development on the National Construction Code. It will certainly be one to watch as the year progresses. Another hot topic is the appropriate use of Aluminium Composite Panels (ACPs). The National Construction Code already restricts the use of these products. Ministers have agreed in principle to a national ban on the unsafe use of combustible ACPs in new construction, subject to a cost/benefit analysis being undertaken on the proposed ban, including impacts on the supply chain, potential impacts on the building industry, any unintended consequences, and a proposed timeline for implementation. There is no doubt our industry is rapidly changing. Unfortunately poor workmanship and unscrupulous behavior can damage the reputation of the entire industry, causing financial loss and reduced employment and economic output. Whether the client is the government, a private company, individual or family, they should be able to expect that the work they have paid for is delivered on time and on budget, and free of defects. Master Builders SA wants to help our members be the best they can be and set standards for the industry. We are committed to delivering quality education and recognise the importance of upskilling our members through our Industry Ready Education program to meet the highest standards of excellence. We understand the need to help members stay competitive and grow their businesses. A true Master Builder is always looking to refine their craft. Our 2019 training program is our best yet and I highly recommend members take advantage of the opportunities our courses provide to push your professional limits. As always we have been fighting hard for our members and I would like to single out two recent wins. Last year South Australia was the worst affected state in the country by delays installing smart meters. A bungled Federal Government program launched in December 2017 caused a significant blowout in waiting times for new and replacement meters when responsibility was moved from electricity distribution companies to retailers. It was completely unacceptable that people making the biggest investment of their lives could not move into their own homes. Master Builders SA became aware of some customers waiting up to 16 weeks – absolutely farcical. I’m pleased to report that following strong lobbying of state and federal politicians, the Australian Energy Market 4

Ian Markos

Commission (AEMC) made a rule that gives customers more control over when their electricity meter will be installed or upgraded. Retailers will have to provide new smart meters by a date agreed with customers. If no timing is agreed, retailers must install new meters within six working days after a property has been connected to the network. Retailers will be fined $10,000 a day (up to $100,000 in total) if they fail to meet these requirements. The Marshall Government has also announced new procurement guidelines (the Skilling South Australia Procurement Guideline) that will reduce red tape and help get more young people into our industry. Master Builders SA had considerable input in to raising the threshold to projects over $50 million and also ensuring that apprentices and trainees account for 15 per cent of labour hours. The Guideline replaced the Workforce Participation in Government Construction Procurement Policy. Regular feedback from members was that the requirements of the Policy were overly burdensome. The reforms not only make procurement easier for members but focus on having a skilled future workforce that is ready to support growth and diversification. South Australia has seen a sharp uptick in business confidence since the election of the Marshall Government last year. Non-residential construction has been booming, but as the latest Industry Forecast (featured in this edition of SA Builder) shows there is plenty of work to be done. Rejuvenating the housing sector continues to be a top priority for Master Builders SA and our sense of urgency was only heightened by three builders sadly going under late last year. In the month of December alone Master Builders SA appeared in the mainstream media 16 times spruiking our Five Point Plan to improve affordability that featured in the previous edition of SA Builder. We are convinced this is the blueprint for a far more robust sector. Check Policy and Communications Director Will Frogley’s column in this issue for an update. Finally, I would like to congratulate BADGE Constructions Managing Director Jim Whiting. Jim joined a range of distinguished compatriots on the 2019 Australia Day Honours List, receiving an Order of Australia Medal for service to the building and construction industry. Master Builders SA President from 1995-97, Jim founded BADGE, one of Australia’s largest privately owned commercial construction companies, in 1983. He is a legend of our industry and the Association. Thoroughly deserved, Jim. Ian Markos CEO, Master Builders SA

SA BUILDER AUTUMN 2019

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PRESIDENT’S REPORT

Local builders do South Australia proud at 2018 National Awards South Australian builders were on display at the Master Builders Australia National Building Excellence Awards in Adelaide on Saturday 23 November with Bianco Precast, Hindmarsh Construction Australia (SA) and Scott Salisbury Homes each recognised on the national stage. Bianco Precast won the National Specialist Contractor of the Year for their outstanding work on the Darlington Bridge upgrade, over the Southern Expressway. The award recognises their world-class work as one of the best in building and construction across the country in 2018. The installation of the first of eight bridges is part of the SA Government’s $620 million Darlington Upgrade Project. In an Australian-first for civil construction project of this scale, the ‘off-line’ methodology of bridge construction had been used for these structures involving the 3,000 tonne bridges being constructed off-site and then transported and lifted into place using self-propelled modular transporters. Three of Adelaide’s busiest intersections are located within the Darlington Upgrade Project site with the new bridges improving traffic flow and reducing travel times for vehicles. The installation of the first bridge was successfully completed well ahead of schedule – installation began on a Friday night and the bridge reached its final position across the South Expressway on the Sunday morning. Building the bridge off-site and then moving it into its final position removed the need for multiple closures of parts of the Southern Expressway and Main South Road. Innovation and attention to detail set Bianco Precast apart in this category. The client could not speak highly enough of Bianco Precast and their commitment to detail. The sheer size of each precast panel and how they were placed together on this bridge took absolute precision. Hindmarsh Construction Australia (SA) took out the Cbus National Medium Density over 5 Dwellings Award for Atira, BlueSky Student Accommodation in Adelaide’s CBD. Atira is a 16-level building comprising of 397 purpose-built student accommodation rooms. It includes a reception, office and multiple breakout areas including communal dining, living and study areas, games rooms, a theatre and café. It truly provides students with so much more than merely a place to live. Judges noted that the workmanship and hands on approach in relation to the individual precast concrete panels was outstanding. Hindmarsh Construction carried out difficult precast work and the internal finishes as well as the builder’s involvement in a lengthy and detailed Value Management process is a credit to them. A 50 percent occupation rate of the building only three weeks after completion also meant that the client satisfaction on this project was very high. 6

Peter Salveson

Toyota National Display Home $350,000 to $500,000 was awarded to Scott Salisbury Homes for The Harrison. Scott Salisbury Homes is an iconic South Australian builder and it was no surprise to see them once again being recognised for their prowess. The Harrison adopts a visionary approach to luxury living, thoughtfully designed and expertly crafted to the highest standard. Judges were highly impressed with the elegant living areas throughout, whilst exhibiting iconic trademark innovation with bold and contemporary finishes and textures. Exceptionally designed with stunning street appeal, The Harrison has lofty three metre ceilings, a large entry void, full height commercial windows, and a unique Skillion roof design assisted in amplifying the home’s scale and to optimise natural light. Through careful site management, coordination of tradespeople and services, The Harrison was completed eight weeks earlier than anticipated, achieving an outstanding twenty-week build time. I would like to congratulate all three winners on your achievements. It is tremendous recognition that South Australian building and construction companies can more than match in with anybody in the country, and you should be very proud of your success. The 2019 Master Builders SA Building Excellence Awards will be held on Friday 16 August and entries are now open. This is the most anticipated industry event of the year, and last year more than 1200 people packed the Adelaide Convention Centre to celebrate excellence in the South Australian residential and commercial sectors. Your involvement demonstrates a commitment to quality workmanship and winning an award provides endless marketing opportunities and recognition as an industry leader. If you are considering entering this year, I encourage you to familiarise yourself with the award categories, criteria and conditions of entry. All of this information is available on the Master Builders SA website. This year the Master Builders SA “Nominate a Subbie” campaign calls for residential and commercial members to nominate subcontractors for outstanding industry work. Members have been given the opportunity to nominate up to three subcontractors for projects worked on in conjunction with their business where they believe a level of excellence was achieved. This award encourages builders to support their subcontractors and acknowledge their contribution to the industry – a very worthy initiative! Peter Salveson President, Master Builders SA

SA BUILDER AUTUMN 2019

BUILDING EXCELLENCE AWARDS 2019

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Entries Open Monday 4 March 2019 Entries Close 6:00pm Friday 19 April 2019 Awards Evening 7:00pm Friday 16 August 2019 Adelaide Convention Centre

FEATURE

Strong Building, Strong Economy Like it or not politics has a big impact on the economy and the environment that you do business in. This year’s Federal Election is no exception.

full time jobs. Locally the industry is vital to the State’s ability to prosper and grow, building the homes, schools, hospitals and roads that are vital to a stronger economy.

At this election issues of vital importance will be up for debate and you will have to decide which political party’s policies best meet the needs of your business, the economy and your family’s future.

The success of our industry is fundamental to the success of our economy and improving living standards, and that’s why we are campaigning under the banner of Strong Building, Strong Economy at this Federal Election.

Restrictions on negative gearing, increases in capital gains tax, stopping union bullies from bullying small business people on construction sites and whether there will be tax cuts for companies, small and medium businesses and sole traders – these are just some of the issues that you will be deciding on when you cast your vote.

After significant consultation with Master Builders Associations across the country, we are now more ‘campaign ready’ than ever thanks to the establishment of National Campaign Fund. We now have the resources to ensure that Master Builders is front and centre in the most important debates, serving as the most effective national voice for members and the industry. It strengthens our capacity to fight publicly and in the corridors of power, not at federal elections but whenever member’s interests are in jeopardy.

As a member you have the benefit of Master Builders Australia, or the ‘National Office’ as many refer to us, standing up for your interests with federal politicians – Liberal, Labor, minor parties and independents. Election years always see our activity ramp up and we are working closely with your team at Master Builders SA to make our politicians hear your concerns loud and clear so that the issues that matter to you and your business are front and centre of the national conversation. To help us succeed we need to understand our industry’s story a lot better and tell it a lot more often in our own communities. Our industry is the second largest in Australia; it’s also the second largest employer and largest provider of

Consultation with Master Builders Associations around Australia has identified the following key themes that our members want us to campaign on: • Retention of the ABCC is vital to stop the bullying on construction sites • A better go for small business • Housing construction to meet demand needs to be stimulated not curtailed • The building and construction industry needs more skilled people to build Australia

As the foundation of Strong Building, Strong Economy these pillars are the umbrella for a comprehensive policy agenda including tax, safety, broader industrial relations issues, building regulation, procurement, infrastructure and population policy – just to name a few. Importantly, Strong Building, Strong Economy builds on a year of robust advocacy by Master Builders nationally and in South Australia. We know that direct, evidence based campaigning increases the respect of governments of all flavours for Master Builders.

Author

Denita Wawn, CEO, Master Builders Australia National Office

MASTER BUILDERS AUSTRALIA WANTS THE NEXT FEDERAL GOVERNMENT TO:

STOP THE BULLYING so KEEP THE abcc

WWW.STRONGBUILDING.COM.AU 8

MBA Strong Building QTR H AD1.indd 1

DON’T limit NEGATIVE GEARING & don’t increase CAPITAL GAINS TAX

Authorised by Denita Wawn, Master Builders Australia, FORREST, act, 2019

SA BUILDER 18/2/19 AUTUMN 2:392019 pm

FEATURE

What builders want from the next Federal Government Top 9 for 2019: The ABCC is vital to stop union bullying and reduce costs of construction We Want • The Australian Building and Construction Commission (ABCC) retained. • The ABCC to be resourced to do its job properly. We Oppose • The abolition of the ABCC.

A better go for small business We Want • Company tax relief for small business. Reduced company tax rate to 25 percent. • Income tax relief for sole traders. • Red tape reduction – 10 percent reduction of compliance time and costs by 2022. • Regulatory Impact Statements for any new legislation and regulation to show the effect on time and compliance for small and medium businesses. We Oppose • Reversal of legislated company tax cuts for small and medium businesses with annual over of up to $50 million.

Meeting the housing needs of all Australians We Want • Retain current negative gearing arrangements. • Don’t increase capital gains tax, keep the current 50 percent discount. • Release of more federal government ‘non-useful’ land for housing development for example release of unused defence housing land. We Oppose • Any policy that increases the tax burden.

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Building and construction needs more skilled people in Australia We Want • Targeted funding to boost the reputation of trade careers. • Targeted funding for pre-apprenticeship programs. • Introduction of a quality framework for all Registered Training Organisations+ (RTOs). We Oppose • Federal vocational education and training (VET) funding going only to the TAFE system. • Qualification frameworks that lock out industry input and are not flexible to meet industry needs.

A balanced workplace relations system We Want • Strong right of entry rules that are enforced. • Sensible rules to encourage bargaining and where strikes are a last resort. • Commonsense dismissal laws with more emphasis on the right of small business people to manage their business. We Oppose • Any reduction in Freedom of Association protections. • Any move to increase the power of unions in enterprise bargaining, including the use of pattern bargaining. • Restrictions on employment arrangements.

Sensible approach to contracting We Want • Preserve the right to be an independent contractor. • Great consistency between Security of Payment laws. We Oppose • Abolition or reduction of current independent contracting laws.

Safe and productive building sites We Want • Stronger rules and enforcement to stop safety being exploited for non-safety purposes including to gain right of entry. • Consistent safety laws across the country. • Regulators that enforce current laws rather than make new ones. We Oppose • Attempts to blur the line between industrial relations and safety laws. • Introduction of industrial manslaughter • Giving unions more tools to circumvent Right of Entry Laws.

Smarter approach on how our cities and regions work We Want • Increased infrastructure spending that reflects community needs. • A plan to accommodate population growth. • Retention of Infrastructure Australia. We Oppose • Duplication and inconsistency between tiers of government that wastes tax payer’s money.

Sustainable and affordable housing We Want • Any reforms to have Regulatory Impact Statements (RIS) to assess the impact on the community and the industry. • Energy reforms through market and whole of house mechanisms not through stringency increases. • Increase in industry education on NCC changes every three years. We Oppose • Moves to push for increase in energy stringency in homes before considering alternative mechanisms. • Greater complexity of NCC. • High costs of compliance.

FEATURE

Stop building union bullying Union bullying happens every day on construction sites around the country despite bullying being a major focus of community concern. It is not tolerated in the home, the school or the majority of workplaces and it must not be allowed in our industry. The price of tolerating bullying by the CFMMEU and other building union bullies is simply too high. Small and medium ‘mum and dad’ businesses continue to be the major target of union thugs; and because of it taxpayers pay millions more for schools, hospitals and roads. While there is no silver bullet or magic wand that can eradicate the deeply entrenched culture of bullying in the

construction unions, Master Builders successfully fought ‘tooth and nail’ to bring back the Australian Building and Construction Commission (ABCC) to tackle the problem. Since it was re-established, the ABCC has been making good headway. It has been holding the CFMMEU and other construction unions to account by successfully prosecuting the unions and their officials in the courts for their flagrant breaches of the law. The outcomes have included millions in fines imposed on the unions and widespread recognition by the judiciary that the CFMMU in particular believes that it and its officials are above the law and have a right to flout it. The reality is that without the ABCC the lawless behavior of the CFMMEU would go unchecked and its culture of bullying would go unchallenged. Now there is a new challenge. Labor’s policy to abolish the ABCC will undo all the good work that has been done. It

Facts & Stats The courts have imposed nearly $200 million in fines on the CFMMEU so far in the 2018/19 Financial Year so far. There are currently 78 CFMMEU officials before the courts for over 800 potential breaches of the law. What the courts say “It would be apt to describe the behavior as sheer thuggery. Such thuggery has no place in the Australian workplace. Contraventions of the FW Act that involve thuggery cannot be tolerated.” – Justice Vasta, FCCA (2016) 488

“The conduct was subversive of workplace health and safety responsibilities, responsibilities of the very kind with which, historically and legitimately, trade unions have been deeply concerned in the interests of workers.” – Justices Tracey, Logan and Bromwich, CFMEU v ABCC (the Broadway on Anne Case) (2018) FCAFC126

“The conduct of the CFMEU in this case brings the trade union movement into disrepute and cannot be tolerated. In a liberal democracy, it is assumed that citizens, corporations and other organisations will comply with the law. Such compliance is not a matter of choice. The “The CFMMEU’s record of contraventions of industrial community does not accept that a citizen, corporation legislation is appalling. Since 2000, it has been found to have contravened industrial legislation on more than 140 of other organization may choose to break the law and separate occasions.” – Justice White, Australian Building simply pay the penalty.” – Justices North, Dowsett and Rares, FCAFC 53 and Construction Commission v Gava (2018) FCA 1480

gives a green light to the CFMMEU and other construction unions, sending the message that a Labor Government will tolerate union bullies on construction sites. Industrially, it will take the industry back to the days of the BLF! The victims will include the hundreds of thousands of small and medium business people who bear the brunt of CFMMEU bullying as well as the community, with mums and dads ripped off by being forced to pay to 30 per cent more for the things they needs including schools, hospitals, roads and other taxpayer funded infrastructure. We know this issue is one that matters to Master Builders throughout Australia. That’s why a major focus of our Strong Building, Strong Economy campaign is making voters aware of Labor’s plan to scrap the ABCC and the terrible cost it will force our industry and the community to pay. We are working closely with Master Builders SA to make sure that our Stop the Bullying message is heard and are calling on voters to tell Labor to keep the ABCC if they are elected. We are ensuring the same message is heard loud and clear by all political parties and independent candidates at this Election. Say NO to union bullying. Join other Master Builders from all over Australia in calling on Labor to keep the ABCC if they win the Election. Visit: www.strongbuilding.com.au or www.masterbuilders.com.au

Author

Ben Carter, National Director of Media & Public Affairs

Labor fails its own test on negative gearing and capital gains tax Contrary to Labor’s claims, its policies on negative gearing and capital gains tax will not increase the supply of new housing or create new jobs in the building industry according to new independent economic modelling commissioned by Master Builders Australia. According to modelling prepared by Cadence Economics if Labor’s policies are implemented it will mean: • Up to 42,000 less new dwellings being built across the country. • Up to 32,000 less full time jobs. • Up to $11.8 billion less building activity • Up to $210 million less renovation building activity Labor’s policies on negative gearing and CGT fails its own test. Master Builders calls on the ALP to rethink their policies in the light of this new research and a changed housing 10

market. Australia cannot afford for housing supply, building activity and employment to go backwards. Cadence Economics was commissioned by Master Builders Australia to test Labor’s claims that its policy to restrict negative gearing to investments in new housing and halve the capital gains tax (CGT) discount to 25 per cent all properties will increase the supply of new housing and employment in the building industry.

On the other hand independent modelling by Cadence Economics shows that Labor’s policy would mean up to 42,000 fewer new homes would be built over the five years following the implementation of Labor’s policies, resulting in a reduction in the value of residential building activity of between $2.8 billion and $11.8 billion. Home renovations would also be hit by an expected reduction of between $50 million to $210 million in activity over a five year period. Inevitably this would mean a fall in employment which is expected to be between 7,200 and 32,000 less jobs across the country.

The results of the modelling show that within five years of Labor’s property tax policy being implemented the construction of new housing would fall in all states and territories and employment would fall over the same period. Finally, the context of Labor’s policies, namely an ‘overheated’ housing market no longer exists bringing into question the need for reforms to curb investor activity. Labor has previously stated their policies would boost new dwelling construction “by thousands of new homes each year.

SA BUILDER AUTUMN 2019

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FEATURE

Home batteries putting control back in the hands of households We know that energy costs are a real concern for South Australian households and that’s why we have a clear plan to help drive down prices while improving energy security. A key plank of this plan is the State Government’s Home Battery Scheme, giving households more control of their energy use. It’s the largest roll-out of home battery systems per capita in the world, and it’s an exciting opportunity for households to take control of their energy use while also helping to bring down energy bills for their South Australian neighbours. I think that the building industry will become an important part of this program. At a recent roundtable I attended with some Master Builders Association members in Adelaide, I heard that your members are often talking to their clients about energy in their homes. For people building a new home or renovating an existing one, now is the right time to look at whether a home battery could work for them. They’ll be joining the thousands of South Australians already exploring how the scheme could help reduce their energy bills. Under the Home Battery Scheme, 40,000 households are eligible for a State Government subsidy of up to $6,000 for a home storage system. The subsidy increases in line with the size of the battery. To help you get a sense of it, a small battery of 5 kilowatt hours (kwh) will attract a $2,500 subsidy, a medium battery of 8kwh will attract a $4,000 subsidy, and a large battery of 10khw or larger will be eligible for the highest subsidy available of $6,000. It’s important that a household gets the right amount of storage and the right size solar system to get the most value. This might mean, the larger the family, the larger the battery and the larger the solar system. A battery is not right for everyone, but these subsidies bring them within reach for many. Households can also access low-cost loans from the Clean Energy Finance Corporation to help meet the remaining cost of the battery as well as solar panels if they don’t already have them. 12

Minister van Holst Pellekaan at a recent Master Builders SA CCP/CTP Boardroom Briefing.

In the first four months since the scheme launched, more than 730 South Australians have applied for the subsidies, with 130 households now having batteries installed and benefiting from the technology. If you are a builder and you are interested in having a new property or properties participate in the Home Battery Scheme, the process is relatively simple. The first step is to approach one of the qualified system providers listed on the provider page on the Home Battery Scheme website. The system provider can give you a quote that includes the cost of solar panels, the battery system and installation for the house or houses at the address or addresses you nominate. Each property only needs a National Metering Identifier to be eligible. A record of your quote will be provided to RateSetter, which is managing the Home Battery Scheme subsidies for the South Australian Government. RateSetter is also the contact point for finalising the subsidy application process. The State Government also continues to welcome new system providers and battery systems that comply with our rigorous assessment process. We want customers to be confident in the products, suppliers and installers aligned with the Home Battery Scheme. If you are a reputable installer who can qualify as a system provider, you can complete the application process to assess your eligibility. The initial priority period for the Home Battery Scheme in late 2018 helped secure three global manufacturers to South Australia: sonnen from Germany, which is based in the old Holden factory in Elizabeth, Alpha-ESS from China, and Eguana from Canada. You can find more information about the Home Battery Scheme and how to become a system provider at www. homebatteryscheme.sa.gov.au, or by calling 1300 396 078. The website also has some useful information to help your clients learn about batteries and whether a home storage system is right for them.

All this while we’re creating new industries and jobs in South Australia, capitalising on the world-class renewable sources to attract global investors such as sonnen and Tesla. Of course, sunshine is one of those attractive sources of energy. South Australian householders and businesses continue to find that solar PV makes sound economic sense. Soon after the Home Battery Scheme was announced, the State Government, along with Tesla and Energy Locals, launched the second phase of the Virtual Power Plant, which will see home energy systems installed on 1,000 Housing Trust homes by June 2019. If the numbers add up, this could be expanded to thousands more homes across the state. We’re also looking at other storage projects that will help with security and prices by harnessing our variable renewable energy. Often, the sun is shining and the wind is blowing when demand is low, and, when it’s high, conditions are still or the sun has set. Late last year, we announced that we were seeking applications for the $50 million Grid Scale Storage Fund, which will support investors wanting to develop major projects in the state. Applications closed on 7 February, and are currently being evaluated. We’re also accelerating the interconnector to NSW. The operator of the national market has said that this is a critical piece of infrastructure now and into the future. It will help reduce energy bills by allowing us to access cheaper power, grow a renewables export industry, and improve our energy security. We’ve signed an agreement with the NSW Government to fast-track interconnection between Robertstown in South Australia and Wagga Wagga in NSW, and funded the early works of the transmission companies to bring the project forward. The Home Battery Scheme is attracting global attention and creating jobs in South Australia. It’s an opportunity for your industry to be world-leading and help your mission of providing people with affordable and comfortable homes that reflect their values and aspirations.

However, the Home Battery Scheme is only one component of our strategy to ensure South Australians can be confident that their energy is secure, reliable and more affordable. The State Government has an energy solution based around storing renewable energy at the home and grid scale for when it’s most needed, interconnection with NSW to boost our security and reduce prices, and better storage, interconnection and managing demand.

Author

Hon Dan van Holst Pellekaan MP, Minister for Energy SA BUILDER AUTUMN 2019

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FEATURE

South Australia’s building sector to raise the bar on quality and accountability

Update on building reform under the Planning, Development and Infrastructure Act 2016 The way in which building and construction is regulated in South Australia is undergoing considerable change under the new Planning, Development and Infrastructure Act 2016 (PDI Act) and those who are yet to feel the impact of these changes soon will. Important strides are being made not only in regulatory reform but also in the policy arena, which will hopefully alter the industry culture and regulatory practice of the building sector for the better and position South Australia as a front-runner in building quality control and accountability. This is timely not only because of the pressing need to renew community confidence in building standards and compliance, but also to mitigate the risk of construction issues such as those that have recently made headlines in the eastern capitals. To mitigate these risks and elevate professional building practice in South Australia, new building regulations have been drafted that address areas of emerging need in the building sector. These changes are incorporated into the General Regulations of the PDI Act and were recently made available for public comment from JanuaryFebruary this year. Modernising South Australia’s building system has also involved identifying local issues that require stand-alone regulations. One such issue that has been long overdue for regulatory review in South Australia is swimming pool compliance and safety: as such, the Department of Planning, Transport and Infrastructure is leading the preparation of stand-alone regulations for swimming pools that will complement the General Regulations of the PDI Act. These will be available for public comment via the SA Planning Portal later this year. In addition, new Ministerial Building Standards are now in train that will replace (but be drawn from) existing 14

Minister’s Specifications to provide clearer building rules related to South Australian variations under the National Construction Code. These Standards will be progressively rolled-out on public consultation from mid-2019 onwards.

They will also have access to clearer auditing and compliance processes that will better protect the consumer and enable complaints to be investigated swiftly and equitably so that practitioners are not unduly impacted.

A state-wide set of council inspection policies are also being prepared to replace the numerous and disparate inspection policies adopted at the local level by individual councils. This will take the form of a practice direction that will be issued by the State Planning Commission. By having a single, over-arching direction for the inspection of building works, we will be in a stronger position to achieve increased levels of compliance across council regions and ultimately ensure a safer, more durable and higher quality built environment.

Importantly, the new scheme will also include a code of conduct with legislative status to help ensure that a high standard of ethical conduct and professionalism is met by all industry professionals.

Under the new inspection policies, builders are likely to have a key role to play in notifying councils when key building milestones are reached. This level of rigour and compliance is going to be crucial if we are to drive higher building standards, support the growth of the building sector, and avoid a ‘tick and flick’ mentality that would appear to have let other systems down. The Building Committee, which I currently chair, will play an important role in reviewing the proposed practice direction and new policies and making a recommendation on their implementation across the State.

This new modern direction allows us to establish a reputable community of practice and elevate the building and construction professions sector-wide. The Building Committee will seek to play a role in ensuring that new building instruments under the reform program are fit-for-purpose, address key gaps in the current system and are customer-focused. The Department is keen to hear from practitioners across the building space on the reforms described above and welcomes feedback at dpti.pdbuildingbranch@sa.gov.au. Further information on South Australia’s current program of building reform is available on the SA Planning Portal at www.saplanningportal.sa.gov.au.

But it is not only the rules of the game that are changing for the building sector: the expectations of those who apply the rules are also shifting. The rollout of South Australia’s first Accredited Professional Scheme in late 2019 promises to strengthen the planning and building professions by ensuring that decision-makers in the development assessment process are appropriately qualified and experienced to make the decisions they make. Under the scheme, practitioners will need to produce evidence of their skills and qualifications within certain classes in order to continue operating at their current professional level. All certifiers will need to be registered and accredited under the scheme and meet Continuing Professional Development standards.

Author

Gavin Leydon, Chair, State Planning Commission Building Committee SA BUILDER AUTUMN 2019

FEATURE

Inquiry into Government Procurement The South Australian Productivity Commission (SAPC) is conducting its first public inquiry for the State Government into “the efficiency and effectiveness of South Australian Government procurement processes and practices” to improve procurement practices and the impact on local industry and output. Our final report will go to the government by 17 May 2019. Goods and services purchased by the State Government within the inquiry’s scope total nearly $5 billion a year, so it is a great opportunity to recommend reforms that improve opportunities for local businesses and deliver better value for taxpayers. Engagement is an essential part of our work. So far, we have received 38 submissions from businesses and individuals and held face-to-face meetings with many individuals, associations and SA Government agencies. The extent and quality of the submissions has been impressive. It adds to, and greatly improves, the evidence for the recommendations we will make to the government. Business stakeholders have raised issues and concerns about how the procurement process works and could be improved, including red tape, lengthy processes and

better information about how to do business with the State Government. We are investigating these and other matters. Stakeholders have also raised procurement issues such as payment of sub-contractors as well as other issues that are currently outside of our terms of reference (relating to capital projects and certain public authorities including SA Water and SA Housing Trust). We hope to address these matters at some point. In the meantime, we welcome views and experience of procurement processes involving prescribed authorities or construction projects – which we expect are very relevant to Master Builders SA members.

growth, unlock new economic opportunities, support job creation and remove existing regulatory barriers. Dr Matthew Butlin was recently appointed part-time Chair and Chief Executive of SAPC. He was Victoria’s Red Tape Commissioner in Victoria from September 2015 to June 2018, Chairman of the Victorian Competition and Efficiency Commission (VCEC) from 2008 to 2015. He has held senior executive roles in mining, management consulting and the Australian public service. Matthew holds qualifications from the Massachusetts Institute of Technology and the Australian National University.

So please contact us about making a submission or contributing to the inquiry through other means. Further information is available at https://www.sapc.sa.gov.au/inquiries/inquiries/ government-procurement-inquiry/notice-of-inquiry. About SAPC The Commission was established on 22 October 2018, to examine and make recommendations on matters referred to it by government that facilitate productivity

For more information, go to www.sapc.sa.gov.au. Dr Matthew Butlin will attend the Master Builders SA Commercial Contractors Committee on Wednesday 17 April at 4:00pm.

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FEATURE

Industry Forecast Although the performance of the housing sector in particular remains cause for concern, South Australia’s economy has demonstrated extraordinary resilience in recent years. It doesn’t seem that long ago some analysts were predicting a double digit unemployment rate in the wake of Holden’s closure. Having peaked at 7.1 per cent early last year, the unemployment rate dipped to 5.4 per cent in October – the lowest in six years. The state’s economy generated about 17,600 new jobs over the past year, with the number of workers growing at a faster rate than population growth. Some credit must go to the former Labor Government for investing heavily in infrastructure to protect jobs in our industry. The Marshall Government was elected in March 2018 with a strong mandate to create a pro-business environment allowing the private sector to grow jobs and the economy. Policies such as abolishing payroll tax for small businesses and cheaper Emergency Services Levy bills have seen a surge in business confidence according to multiple surveys. The non-residential sector has been on fire. Over the 12 months to September 2018, the volume of non-residential building in South Australia is estimated to have expanded by 28.2 per cent compared with the previous 12-month period. However, the latest Master Builders SA Industry Forecast shows now is not the time for complacency. The value of residential building work is forecast to decline in each of the next four financial years. New dwelling starts are set to decline by 31.3 per cent compared with 2018/19 levels, with the contraction larger on the apartment/unit side compared with detached houses. Non-residential building activity is also set to move lower over the period to 2022/23 (-34.2 per cent) with engineering construction forecast to fall by 21.6 per cent.

South Australia Graphs & Tables – Residential Building South Australia – Residential Building Work Done by Sector $M, chain volume measures, constant 2015/16 prices – Year Ended June

South Australia – Residential Building Work Done by Sector $M, chain volume measures, constant 2015/16 prices – Year Ended June

South Australia – Number of Dwelling Commencements by Sector Year Ended June

South Australia Graphs & Tables – Non-Residential Building

These predictions do not even factor in a possible Shorten Government’s promised changes to negative gearing and the capital gains tax (CGT) discount. A Cadence Economics report found these changes would result in 2,700 fewer homes being built in South Australia during the first five years of the policy, and a loss of $743 million and 2,260 jobs over the same period. Treasury modelling also shows about 88,000 South Australians would be worse off under Labor’s proposed housing taxes.

SA BUILDER AUTUMN 2019

South Australia – Non-Residential Building Work Done by Sector $M, chain volume measures, constant 2015/16 prices – Year Ended June

Master Builders SA does not seek to be alarmist. We understand all too well that pessimism, just like confidence, can be contagious. However, our industry, which does about $16 billion of work every year and employs about 65,000 South Australians, must never be taken for granted. The key point is the right policy settings will ensure these gloomy prognostications will not eventuate. The Marshall Government is working hard to increase population growth, which grew by just 0.6% over the year to March 2018. This is important because population growth is a central driver of building work in sectors like education, health, retail and transport. A high level of government infrastructure investment in this year’s State Budget and tax reform to stimulate jobs and protect jobs in the industry is also crucial.

South Australia Graphs & Tables – Engineering Construction

The last edition of SA Builder featured our Five Point Plan to improving housing affordability and protect jobs in the industry. A top priority is a stamp duty exemption for first homebuyers on new builds up to the median house price, and for good reason. Stamp duty is a highly inefficient tax that distorts the supply and demand balance for new housing, is a disincentive for new house buyers and is a major impediment to economic growth. Number of Private Sector Houses Approved – States and Territories; (Trend). Source: ABS 8731.0 – Building Approvals, December 2018. Table 08

South Australia

South Australia – Engineering Construction Work Done by Sector $M, chain volume measures, constant 2015/16 prices – Year Ended June

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Oct 2017

723

Nov 2017

721

Dec 2017

715

Jan 2018

708

Feb2018

703

Mar 2018

699

Apr 2018

695

May 2018

687

Jun 2018

672

Jul 2018

653

Aug 2018

637

Sep 2018

625

Oct 2018

618

Nov 2018

617

Dec 2018

621

Let’s start with the positive: the streak of 13 consecutive months of declining building approvals has been snapped. Unfortunately, the 621 homes approved in December is only slightly up, and you have to go back to June 2013 to find another month besides October and November with less approvals (615). Just a year earlier (December 2017) there were 94 more approvals (715). The decline in the value of building approved is also alarming:

House Price

$650,000

$470,000

Additional Houses Constructed

1,500

Additional FTE Jobs

7,040

5,090

Additional Payroll Tax Received

$26,262,724

$17,637,197

Additional Land Tax Received

$105,375

$37,875

Additional GST Received

$53,181,063

$38,453,999

Stamp Duty Lost

$44,370,000

$29,745,000

Net State Government Gain

$35,179,162

$26,384,071

Unit: $000

South Australia

March 2018

262981

Apr 2018

277277

May 2018

284661

Jun 2018

280625

Jul 2018

266622

Aug 2018

247896

Summary of Financial and Economic Modelling – High Case Scenario

Sep 2018

230288

House Price

$650,000

$470,000

Oct 2018

218056

Additional Houses Constructed

1,960

Nov 2018

210112

Additional FTE Jobs

9,198

4,693

Dec 2018

209498

Additional Payroll Tax Received

$34,316,626

$23,045,937

Additional Land Tax Received

$137,690

$49,490

Additional GST Received

$69,489,922

$50,246,559

Stamp Duty Lost

$57,976,800

$38,866,800

Net State Government Gain

$45,967,438

$34,475,186

From 1 July 2017, stamp duty for first home buyers was abolished on properties up to $600,000 in Victoria and on homes worth up to $650,000 in New South Wales. Check out the increase in lending to households for owner occupied first home buyers compared to the 18 months prior to their introduction: Victoria

New South Wales

South Australia

Total: 1 January 2016 - 30 June 2017

39 647

Total: 1 July 2017 - 31 December 2018

53 335

42 818

8754

Percentage increase

34.52%

75.54%

14.36%

24 392

7655

Source: ABS 5601.0 – Lending to households and businesses, Australia, Dec 2018.

With ABS statistics providing compelling evidence for further investigation, Master Builders SA engaged economic consultants Hudson Howells to analyse the potential financial impacts of stamp duty exemptions on new house/land packages. The report, which is available on the Master Builders SA website, considered exemptions for 1,000 houses (low case scenario), 1,500 houses (medium case) and 1,960 (high case): Summary of Financial and Economic Modelling – Low Case Scenario

Summary of Financial and Economic Modelling – Medium Case Scenario

House Price

$650,000

$470,000

Additional Houses Constructed

1,000

Additional FTE Jobs

4,693

3,393

Additional Payroll Tax Received

$17,508,482

$11,758,131

Additional Land Tax Received

$70,250

$25,250

Additional GST Received

$35,454,042

$25,636,000

Stamp Duty Lost

$29,580,000

$19,830,000

Net State Government Gain

$23,452,774

$17,589,381

The numbers clearly show that a stamp duty exemption would not only benefit first home buyers and the building industry, but also see a Net State Government Gain. The percentage of first homebuyers in South Australia (15 per cent) is the lowest of any state or territory. If we are serious about retaining our young people, we need to get them into their own homes as cheaply as possible. In July 2018 Master Builders SA warned in a front page article in The Advertiser about a forecast decline in the value of residential building work. In October our Five Point Plan to improve affordability was widely promoted to the media and parliamentarians. Unfortunately, since then five building companies have gone under. The recommendations in our Five Point Plan are as relevant as ever and must be taken up by the Marshall Government. There is no doubt there are factors beyond the control of governments, most notably the credit crunch as a result of the Australian Prudential Regulation Authority’s intervention to cool bank lending and the Banking Royal Commission. However, there are levers governments can pull to increase demand and help build a more prosperous industry. Good policy for the building industry and South Australia’s economy is clearly Federal Labor rethinking their housing taxes and the Marshall Government abolishing stamp duty for first homebuyers in this year’s State Budget.

Author

Will Frogley, Director, Policy and Communications

SA BUILDER AUTUMN 2019

FEATURE

What our pollies say It’s no secret the state’s building industry is in a parlous state – the most recent ABS statistics are the latest indicator of that. The State Government should be very concerned at that and be open to changing current policy to ensure the continued vibrancy of a key sector. Not only does the building sector contribute significantly to the state’s economy, it also employs more than 45,000 South Australians.

The decline in building approvals in South Australia over the last year is a worrying sign for both the building and construction industry and also for the broader South Australian economy.

Stephen Mullighan, Shadow Treasurer

Over the past year building approvals have declined by 13 percent and declined in eleven out of the past twelve months. The month on month value of new residential builds since the start of the 2018/19 financial year has also dropped by 25 percent with $280 million recorded in June 2018 and $209 million recorded in December 2018.

Late last year we saw the real impact of declining building approvals with three builders collapsing within a space of a week in December, leaving employees and contractors with uncertain futures, just weeks before Christmas. It is now time for the Marshall Government to take this issue seriously. The implications for the industry are significant – less work places huge pressures on builders, and there are fewer jobs for employees and sub-contractors. This industry is a key driver of jobs and activity in our economy. The strength housing construction industry’s is crucial for the strength of our overall economy. And when building activity declines so does the South Australian Government revenues in the form of stamp duty, payroll tax and other indirect taxes which could be spent on roads, schools and hospitals. With millions of dollars of work and thousands of jobs on the line, it is essential that the new Liberal state government steps up to the plate and starts working with industry leaders like the Master Builders Association to fast-track reforms to stimulate housing demand. At the very least, there are opportunities to cut red-tape and reduce costs for the industry, and for South Australians looking to build a home. The new Liberal government has to move beyond just talking about the benefits of the former Labor government’s planning reforms to speed up approvals, which continue to be rolled out. The Master Builders Association of South Australia has taken an important step in advocating real change to red tape, construction costs and taxation – it’s now crucial for the Government to sit down with industry leaders, and respond with meaningful change that will deliver a real difference to the amount of work being done in our state.

I raised this issue in Parliament with the Treasurer, including asking him if the government plans to support’s the MBA’s proposal of stamp duty exemptions for first-home buyers building their homes – and quite frankly, his comments were disappointing. Hon Frank Pangallo MLC, SA Best

SA-BEST wholeheartedly supports the MBA’s proposal. It will be the boost the industry needs, as well as provide some much-needed cost savings for first homebuyers building their own homes. Importantly for a state government working hard to fix a sick balance sheet, the modelling undertaken in an independent report commissioned by the MBA indicates an economic windfall of up to $35 million per annum if it gave the proposal the green light. Similar policy changes in New South Wales and Victoria in recent years delivered significant economic windfalls to those governments. Crucially, the independent modelling indicates up to 1960 additional houses would be constructed and up to 4700 new full-time jobs would be created per annum if the MBA’s proposal is introduced. I am also alarmed at the collapse of a number of small to medium builders who are finding such a tough environment challenging. The building and construction sector is a major driver of our economy and it creates jobs - not just in its sector but associated suppliers. The SA Government needs to explore and implement incentives like tax relief for first home buyers building new homes to keep things ticking over in a volatile industry. SA-BEST will continue to put pressure on the State Government on this crucial issue and to ensure the government is doing all it can to support the state’s crucial building industry.

The Hudson Howells report supports the MBA’s call for stamp duty exemptions for first home buyers. Such an exemption would stimulate the construction industry and create jobs in South Australia. I have support and have advocated not only for a first home buyer stamp duty exemption but also a concession for all new residential builds. The decline in housing approvals indicates that stimulation is needed across the sector and should not be restrained to the first home buyer market.

Hon John Darley MLC, Advance SA.

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FEATURE

Creating new opportunities for South Australians A new year brings new opportunities. I extend my best wishes We have re-established Industry Skills Councils and revitalised the Training and Skills Commission. Ms Marie Paterson has recently been appointed Chair of the Construction, to Master Builders SA and its members for a successful and Mining and Energy Industry Skills Council – one of eight newly-aligned Councils. prosperous 2019. The Marshall Liberal Government is continuing to pursue our ambitious reform agenda that will drive our economy towards greater prosperity and assist our industry sectors to thrive.

The new Industry Skills Councils with strong regional representation will ensure industry priorities will directly inform the State Government’s investment in training, including the $203 million Skilling South Australia initiative.

As we prepare for the massive wave of opportunity for industry growth that’s heading South Australia’s way, there has never been a more important time to ensure that people who are embarking upon the beginning of their careers, as well as those who are preparing for a change, have access to a wide range of choices and pathways that will lead them to a rewarding, stable and prosperous future.

In October, I introduced legislative reforms to modernise the Construction Industry Training Board (CITB) appointment process to ensure the Board is better equipped to serve the industry’s workforce skills and development needs.

One of our recent actions has been to introduce a new procurement guideline for government construction projects to create more employment and training opportunities for South Australians.

A renewed Board will also work to underpin our Skilling South Australia investment to create an additional 20,815 apprenticeships and traineeships over the next four years.

Key legislative reforms to the board appointment process include removing sectorial interests and implementing broader criteria based on individuals who have the relevant skills, experience and knowledge – bringing the legislation in line with other The Marshall Liberal Government is taking bold measures to create new careers and increase traineeship and apprenticeship commencements in building and construction. states and territories.

In December last year, I announced the Skilling South Australia Procurement Guideline which replaces the Workforce Participation in Government Construction Procurement Policy. This new guideline is designed to ensure that South Australians get access to more training opportunities on Government contracts. The Skilling South Australia Procurement Guideline will cut red tape for employers and businesses by raising the starting threshold from $5 million to $50 million, reducing reporting obligations for most Master Builders SA businesses on government projects. Also, crucially, it will ensure that apprentices and trainees will be the focus for 15 percent of labour hours as a recommended requirement for those projects over $50 million. For each Government construction project above $50 million, my department will determine the training and employment outcomes expected from the contract. The Industry Advocate will work with head contractors to determine how they will meet the 15 per cent labour hour target. We know that the reduction of red tape through the new procurement guideline is welcomed by industry, and I’m very confident the changes that we’ve implemented will have the desired effect of creating new opportunities for South Australians across government construction projects. The new procurement guideline underpins our strong commitment to rebuild a skilled workforce for South Australia, after seeing several years of unacceptable decline not only in skills, but in training commencements. The Skilling South Australia Procurement Guideline is only one of the many steps we’re taking in our ambitious reforms to South Australia’s training sector. 20

More career opportunities for our state is exactly what the Marshall Liberal Government promised, and it’s exactly what we’re delivering. The Master Builders SA is a crucial partner to the South Australian Government in ensuring that our state has a ready pipeline of skilled individuals who are choosing pathways into trades in the building and construction sector. This is a sector of our economy whose importance can’t be overstated and ensuring that strong opportunities exist for new traineeships and apprenticeships is fundamental to the sector’s future success. A close working partnership with the Master Builders SA has led to great outcomes in the development of our new procurement guideline, and will continue to assist the South Australian Government’s policy development in areas that relate to our crucially important building and construction sector – as well as in continuing to ensure that our reforms to South Australia’s training and apprenticeship system are getting the right results for our industries, our workforce and our community. I pay tribute to the work of the Master Builders SA and look forward to a fruitful year of collaboration and partnership ahead. If you’d like to learn more about the new Skilling South Australia Procurement Guideline please visit www.industryandskills.sa.gov.au/ industrypolicy

Author

Hon. David Pisoni MP, Minister for Industry and Skills

SA BUILDER AUTUMN 2019

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FEATURE

Marshall & Brougham

70 years of quality building James Gatt Marshall was a teenager when he arrived in Australia with his family from Scotland and soon became an apprentice carpenter with local builder C H Martin. He undertook correspondence courses and attended the School of Mines which equipped him to become a building supervisor which was invaluable experience to create his own company. Depression and war shaped his character and after returning from Darwin, where he served with the Armed Forces building accommodation facilities for our troops in World War II, he joined Webber and Williams as a Project Supervisor to rebuild the Moore’s Department building in Victoria Square. The building, now the Supreme Court, had been gutted by fire in 1946. James met his future partner Stewart Brougham who was an estimator with the company. Stewart and Stan Webber, whose uncle owned Webber and Williams, were keen to start a new company and were prepared to wait for Jim to finish the project and in 1948 Jim and Stewart formed Marshall & Brougham Ltd. The first address was at Stewart’s father’s home in Barr Smith Avenue Glen Osmond where a large shed was available and with Mr Brougham’s senior financial support they embarked on 22

selling themselves to architects and clients as commercial builders and high class joinery suppliers. Their first job was at Metters, Mile End and hand written records of that job are a reminder of how particular and exacting Jim and Stuey organised the project. In 1949 land was purchased in Maesbury Street Kensington and offices and a joinery shop were built. The company occupied those premises until 1984 when the Directors decided to relocate and develop the three acres into a retirement village. Stan Webber, the first employee was given the responsibility to set up and run the joinery shop. The first apprentice was Freddie Stewart and David Powell joined as accountant and shareholder taking over the book keeping duties from Helen Brougham who had been involved during the setting up of the company. The company grew rapidly and due to the materials shortage after the war, a decision was made to buy a brick works so the company had a steady supply of bricks – a first choice building material of many clients. The Onkaparinga Brick Works at Lobethal were acquired and the company won many projects because of their ready supply bricks. In order to lay these bricks

a relationship was developed with the Brown family bricklayer’s father Rocky and his four sons Jack, Bob, Bill and Frank. Rocky was still laying bricks at 81 and only stopped because he nearly fell down a six storey lift shaft Marshall & Brougham was building at Hooker House in King William Street. A company does not last 70 years without support from many quarters including the clients who gave Jim and Stuey the opportunity to build. Marshall & Brougham have built churches, hotels, sporting facilities, retirement homes, single houses, multi storied apartment blocks, factories, supermarkets, office fit outs, asbestos removal, restaurants, schools, swimming pools, service stations, TABs, animal refuge shelters, renovations of unique heritage buildings and multi storied buildings. The company has always been family orientated and hosted annual picnics at National Park or Morialta picnic grounds. A tradition, continued today, started with Jim making a speech thanking all for their contribution during the year and outlining next year’s prospects. During those first 20 years, things were changing fast with many immigrants flowing into the country and brining cultural change. The migrant workers were strong and SA BUILDER AUTUMN 2019

skilful especially in the concreting, terrazzo plastering, tiling carpentry and general labouring areas. The 60s and 70s saw the consolidation of the subcontracting system, the strengthening of unions and the demise of the technical high schools and subsequently the reduction in apprenticeship training. Instead of one large company having all trades on the payroll, the industry reverted to numerous small companies working for the Master Builder which presented huge supervisory challenges. The start of each decade saw a recession which taught the company to be efficient and realise that the heady 50s and into the 60s were over. Computerisation became sophisticated displacing the comptometrist and typists and to have a mobile phone told the world how rich and important you were. Communication technology grew at a fast place – companies had to deal with obsolescence. Material handling, OHS, industrial relations, new materials, regulations all combined to make the company more aware of their commitment to the client, the work force and wider community. The following decades set Marshall & Brougham on a course where the value and complexity of projects increased. They worked on some iconic projects, most notably Football Park. Marshall & Brougham has won numerous project awards and been named Master Builders Commercial Builder of the Year twice.

Marshall & Brougham has been a Master Builders SA member for 66 years and John Marshall was President from 1992-94. Managing Director Andrew Marshall is the current Master Builders SA Vice-President. “Andrew is without doubt one of the Association’s strongest and most passionate advocates,” said Chief Executive Officer Ian Markos. “His energy and commitment would give anybody a run for their money and we are truly fortunate to have his input. He’s a tremendous asset, just as John continues to be. “Andrew is also widely respected by the industry for the highly ethical approach he brings to business relationships.”

For futher information visit: www.marshallbrougham.com.au

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STEEL FRAMES AND TRUSSES

Maxispan - taking steel framing to a new level Maxispan is a proudly South Australian fabricator supplying local builders and developers with a fully engineered steel frame product range including wall frames, roof trusses, floor joists and flooring cassettes that are all made from TRUECORE® steel. With an experienced team of in-house steel framing design and manufacturing specialists, and strong relationships with accomplished steel frame erectors, Maxispan has proven capability and capacity in delivering a steel frame solution from design through to the installation stage. “We manufacture our steel frames from BlueScope’s TRUECORE® steel and pride ourselves on the flexibility, accuracy and quality of our products and services. Our preassembled frames help to reduce waste onsite, require fewer trades onsite and contribute to a fast and highly efficient installation. We utilise the latest FrameCAD design technology and manufacturing methods and combined with Maxispan’s commitment to excellent customer service, it has proven to be a successful formula for our South Australian customers,” explained Craig Fleming, Managing Director of Maxispan. “I have a genuine passion for offsite construction and the benefits it can bring to the builder and developer. Our pre-fabricated frames made from TRUECORE® steel lend itself to that style of construction. In my experience I’ve seen some issues around timber including quality, onsite storage and waste. With our prefabricated lightweight steel steel, particleboard and wet area floor sheeting. They’re frames, we have quality control processes in place during manufactured and pre-assembled off-site to an optimum the manufacturing stage and this results in precision size based on the building floor area and transport frames and very little onsite waste,” said Craig. restrictions. The finished floor area for each cassette is typically 18 to 22m2. Each cassette is fitted with lifting Fully compliant with all relevant Australian building codes and standards, Maxispan’s products made from lugs which helps to ensure the safe and efficient lifting TRUECORE® steel are lightweight, strong and termite from the truck to the top of the wall frames on site. proof. The trusses offer straight and true roof and ceiling In most instances, truck or trailer mounted Hiab cranes lines and the wall frames maintain a straight and flat can be used which negates the need for a separate crane surface that is ideal for the installation of internal linings to be organised. and external claddings. Craig explained, “Our products really help to give projects the perfect finish.” The floor cassettes were trialed on a townhouse project at Newton in South Australia and Craig explained that The open web design of Maxispan’s floor joists allows for substantial on-site time savings were realised. Engineered the easy installation of services and the wall frames come to exacting standards, the accuracy and quality of the floor with recessed fixings and pre-punched service holes for cassettes was strictly controlled during production process plumbing, data and electrical services which can make life and fully certified by an independent engineer. easier for the follow-on trades. Maxispan’s pre-fabricated supply and install cassette Maxispan has recently introduced floor cassettes made system allowed for a much faster install on site. There from TRUECORE® steel as an exciting addition to its are many advantages to using light gauge steel framing steel building frame portfolio. The floor cassettes consist including being termite proof, less structural steel is of open web floor trusses made from TRUECORE® required and it’s very straight, not to mention the fact 24

that we have fewer men on site and for shorter periods of time. It’s an enormous benefit to builders and developers. It’s convenient not having to store materials on site, particularly on small sites where storage space can be limited. Pre-fabrication also means less rubbish is left on building sites and the floor cassettes can be made rain, hail or shine which helps keep the project moving along without interruptions. The future is bright for Maxispan with forward orders exceeding their expectations. “Every week we’re hearing from interested builders wanting a service proposal. Working with TRUECORE® steel has proven itself time and time again as being the right choice for our business. We have a lot of confidence and we’re definitely seeing a shift in the industry towards more lightweight steel frame construction,” said Craig.

If you’re interested in finding out more about Maxispan and building with frames made from TRUECORE® steel, please visit Maxispan’s website – www.maxispan.com.au SA BUILDER AUTUMN 2019

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telephone: 1800 286 416 e-mail: info@maxispan.com.au

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Innovative construction lending options

HomeStart’s innovative construction lending options helps more South Australians into home ownership HomeStart Finance’s construction lending has grown significantly in the past financial year, helping more South Australians – and in particular first home buyers - build their own home. Over the 2017-18 financial year, the State Governmentbacked lender approved 418 construction loans representing $135 million of lending and 23.5 per cent of total new lending by HomeStart. This is an increase of 64.6 per cent on loans of this type approved two years ago. HomeStart’s construction lending can be offered via house and land packages undertaken with 16 participating South Australian builders to reduce the upfront costs of building. Instead of buying a block of land and then finding a builder to build their home, this package bundles land and build together allowing eligible buyers to choose one of many standard or customisable home designs at the same time that they purchase the land. HomeStart Chief Executive Officer John Oliver attributed their strong growth in construction lending – which has helped HomeStart attain close to 15.5 per cent market share of first home buyers in the construction sector during the past financial year – to a number of important factors. “One of HomeStart’s main aims is to reduce upfront costs for home buyers and this includes those who want to build,” Mr Oliver said. Mr Oliver said by creating partnerships with some of the State’s most established builders, HomeStart are able to provide South Australians with the option to secure a house and land package with reduced upfront costs in a number of ways. 26

“Despite the removal of off the plan concessions this year and a more conservative approach by banks, we’re still expecting a strong 2018-19. We predict uptake of this loan option will continue to grow.”

“Many of those who use our Graduate Loan to enter the South Australian housing market decide to build or buy newly constructed homes, which highlights the strong preference for this option.”

“HomeStart can lend up to 97 per cent of the value of the house and land package to those who are eligible. We also don’t charge a Lender’s Mortgage Insurance (LMI) and our alternative Loan Provision Charge (LPC) is significantly less than LMI for most borrowers,” Mr Oliver said.

Falling into this category are buyers Tori and Phil Woolford, who used a HomeStart Graduate Loan combined with a house and land package to design their dream home at Clearview, 8km north of the Adelaide CBD.

When a HomeStart loan is combined with a house and land package from one of the 16 participating builders, buyers can choose not to make loan repayments for the first nine months or until construction is complete, whichever comes first. Builders involved with this package option also tend to reduce the number of drawdowns buyers make – often from six to three. By making fewer payments of this type, it means buyers pay less interest. “We are also extremely proud that our work in this area is helping support more than 300 jobs in the construction industry.” “Buyers also only pay stamp duty on the land value and not the house.”

Construction on their three-bedroom 300 square metre home started in 2018 and is expected to be completed mid this year. “For us, a big drawcard was the fact that you don’t start repayments for the first nine months, or until construction is complete, whichever comes first.” Mrs Woolford said. “This meant that we could continue to rent without having the additional pressure of paying the mortgage, which I know can be a huge stress for those who don’t have this option. “We can’t wait to move into our new place and we’re grateful HomeStart were able to make it possible.”

First Home Buyers could also be eligible for the $15,000 First Home Owner Grant to put towards their deposit, fees and charges, further reducing upfront costs. Mr Oliver said loan numbers in this category were particularly strong in Adelaide’s developing southern suburbs – where affordable land is readily available – as well as the Adelaide Hills, where towns such as Mount Barker continue to enjoy strong popularity with first home buyers. “Our graduate loan, with its low deposit and flexible repayment options, has been extremely attractive to borrowers who have recently competed higher education study – and especially those opting to build,” Mr Oliver said.

Home buyers can find out if they’re eligible for a HomeStart loan to finance a house and land package via a call to 1300 636 878, or by contacting participating builders listed on their website at homestart.com.au/building/houseand-land-package SA BUILDER AUTUMN 2019

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HiViZ Women Building Australia update

New staff Introducing Mark Evans and Samantha Cowan

National Mentoring Program The National Mentoring Pilot Program for women in building and construction that was funded by the Federal Government received a big tick from mentors and mentees. Participants were surveyed following their completion of the program and overall satisfaction levels topped 90 percent with 95 percent testifying that some or all of their goals from involvement in the Mentoring Program had been achieved and 90 percent satisfied with mentor/ mentor matching. A majority of participants rated their experience of the program as excellent with 35 percent nominating it as “one of the best things I’ve ever done.” “The HiViZ Mentoring Program gave me a platform to ask industry related questions without fear,” said Melissa Nathan, Hindmarsh Plumbing QHSE Manager. “This helped me to develop the confidence I needed which enabled me to believe in myself and execute my role.” Hindmash Plumbing General Manager Will Chapman is one of many who has thrown his weight behind the project.

“From my perspective the HiViZ Mentoring Program is a fantastic initiative. Mel Nathan has been an active participant in the initial program and it has given her the opportunity to meet an industry colleague outside our business. “Her mentor was specifically selected to compliment her role as QHSE Manager and has enabled her to discuss issues and challenges they both face in our industry. Both Mel and Hindmarsh Plumbing have benefited from her involvement in the program.” Want to find out more? Contact Membership and Business Development Manager Marissa Hankinson on 8211 7466 or mhankinson@mbasa.com.au

Master Builders SA Catch of the Year

Mark Evans, Safety, Quality and Environment (SQE) Manager Mark has been working in the safety and environment arena for 25 years encompassing many challenges and career advancements during his journey across a diverse range of industries. Mark has a strong passion for creating great places to work and the recognition that workplaces need to place health and safety at the forefront. Previously Mark was employed as a Safety Advisor with Lendlease Engineering. A key responsibility was to foster Lendlease’s Injury and Incident Free vision and Global Minimal Requirements strategies.

Calling all anglers! Want to show off your best work and win a Johnnie Walker Blue Label Scotch Whisky and Crystal Glass Gift Pack while you’re at it? We’re on the lookout for the Master Builders SA “Catch of the Year”. Criteria: • You must be a Master Builders SA member • The fish must have been caught during 2019 • Yes, size matters, but the winner will be judged the most impressive catch

Each edition of SA Builder this year will showcase member entries. Kicking off proceedings we have Andrew O’Connor from O’Connor Services and what he jagged at the Coast 2 Coast Tuna Tournament in February. Send all entries to wfrogley@mbasa.com.au

Samantha Cowan, Return To Work Coordinator Samantha has extensive case management experience within the Workers Compensation area, including self-insurance. Samantha has a proven ability to problem solve and investigate complex claims for determination on liability and ongoing entitlements, as well as continuing to manage and strategise complex claims. Samantha’s commitment to members of the Return To Work Scheme will provide members with excellent customer service that is outcome driven, friendly and highly professional. WWW.MBASA.COM.AU

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Rivergum Homes supporting the grass roots Rivergum Group’s Chief Executive Officer Marc Taintey winds down with time on the baseball field, and having had three generations of family involvement with the Henley & Grange Baseball Club, the sponsorship support was an easy decision. “As a South Australian owned and operated company, the importance of community resonates strongly with Rivergum Homes,” Marc says. “The ability to support, appreciate and invest in community lifestyle makes sense for a company who build customers’ safe place. “Small sporting clubs are often run by volunteers and those who have a shared passion for the club, so sponsorship is a great way to help them continue the great work and continue an important community program with a specific emphasis on development of the junior age groups.” The scope of sponsorship for Rivergum ranges between local sporting clubs and the TelethonSA Lottery, with a three-year commitment to supply a house to the cause. The sponsorship with HGBC helps the club with money towards events, signage, uniforms and more.

Toyota Gold Fleet discount Niramar Director Patrick Innes recently purchased three vehicles from Cornes Toyota. Here he tells us about the terrific benefits of the Master Builders SA Gold Fleet Discount! What prompted you to purchase your Toyota using the Gold Fleet Discount? Savings compared to other similar fleet discounted brands of utes. How much did you save? Was it a big saving? A saving of roughly $7,000. In your opinion does this help your business? Every little bit helps business. However, we never buy something cheaper just to do the job. We had a long hard look at the new Hilux since there is currently a lot of competition that has risen to the standard. The comfort, practicality and resale value were just as important. Is this a valuable feature of being a Master Builders member? It is certainly a valuable feature for us. Perhaps not the most important feature, but could be considered a good part rebate for our subscription fees! Would you say to other Master Builders members about the Gold Fleet discount? You could spend a lot of time running around to other manufacturers/suppliers and trying to get them to 28

match a price, but we’ve done this before and the Gold Fleet discount is hard to beat. What do you find good about the 3.5T towing capacity of the Hilux? When we need to tow an unfamiliar load, such as a machine hire item, the Power button/function makes it much easier, and hill climbs are a breeze. What benefits do you get with the 2.8L engine on a daily basis? This being my fourth Hilux, I was curious to see what it would be like to step back into a 2.8L vehicle. This one accelerates smoothly and quickly, yet the fuel economy is comparable to sedan. In fact, my wife says this new Hilux drives like a sedan. I might have to look at using the Gold Fleet discount to get her a new vehicle, and out of mine. Tell me a little about your experience with Cornes Toyota and accessing the Gold Fleet discount? Was it simple? These three vehicles were the second fleet purchase we made with Cornes Toyota. It was as simple as ringing up Master Builders and asking for a letter stating our membership, and then forwarding the email on to Cornes Toyota.

Master Builders SA Gold Fleet Discount How it works

Member of Master Builders SA approaches local Toyota Dealership.

Member provides contact details of Toyota Sales rep to Master Builders SA. Master Builders SA will provide email confirmation of membership to Sales rep.

Dealer will then apply the Gold Fleet Discount to the quote/sale of vehicle.

Purchase of vehicle completed.

(The Gold Fleet Discount is a $ value discount that varies from vehicle to vehicle).

SA BUILDER AUTUMN 2019

MEMBERSHIP

HOST TR AINER OF THE MONTH

NOVEMBER 2018

Craig Roberts Craig Roberts is the owner of C and N Roberts. Craig has three employees and has been in the industry for 26 years. Craigâ&#x20AC;&#x2122;s business focus is predominantly custom built carpentry in the Adelaide metropolitan area. C and N Roberts became an Master Builders SA member in 2000 and consistently placed Master Builders SA apprentices since then. Craig believes the advantages of the Master Builders SA Group Training Scheme is that Master Builders SA attempts to match suitable apprentices with specific host needs. Craig places a strong emphasis on safety and high quality workmanship.

Left to Right: Doohan Johnson, Craig Roberts and Daniel Benson

JANUARY 2019

Mitcon Mitcon has over 150 staff and has been using Master Builders SA apprentices for over four years. Mitcon specialises in commercial formwork on major South Australian projects such as the new Royal Adelaide Hospital (RAH), Vue apartments, Bohem apartments, Botanic High School, Adelaidean on Frome Street, Kodo on Angas Street, Osborne Naval Precinct, and the Health Innovation Building on Ninth Terrace. Mitcon has been an Master Builders SA member for over 30 years and in the last 12 months has introduced six new carpentry apprentices into the workforce which is a massive achievement. Mitcon believes the Master Builders SA Group Training Scheme has a positive output and is a professional well organised service with competent and enthusiastic staff.

Left to Right: Jed Bramley, Frank Pietrobon, Wyatt Pietrobon and Riley Peters

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APPR ENTICE OF THE MONTH

NOVEMBER 2018

Kyle Clarke Why did you become an apprentice? I became an apprentice with Master Builders as I have always had a passion working with timber and building and construction. What do you enjoy the most about being an Apprentice? My favourite part about being an apprentice, is the variety that comes with being a Master Builders Apprentice. The different types of work that I have come across and continue to come across daily is amazing for skill development. Not only do I enjoy all the variations of work on skills I enjoy working with new people and creating new friendships along the way.

What does safety mean to you? Safety to me means being able to go home every night to see your family and then go to work the next day and carry on working with your work mates. It means going home in one piece, in the same or better condition than the day before. Safety is critical in our industry as there is so many hazards around us. Field Coordinator comments: Kyle is a valued member of the MBA GTS. Kyle has settled into this placement with great determination to focus on his second fix skills and adapt to the fast paced commercial working environment. Kyle is reliable and has the ability to work as part of a team or through a self-directed workload.

Commencement of apprenticeship: 16/1/2017 What is your goal once you have completed your apprenticeship? Upon completion of my apprenticeship I plan to work in second fix commercial as I enjoy that side of the industry. However, I would not turn down any other areas of this trade as Current Host Employer: Buch Constructions I am forever eager to learn new skills. Who would you like to thank? I would like to start by thanking my family and girlfriend for providing me with constant support day in day out and always having faith in me. Secondly I would like to thank all of the tradesmen that I have worked with throughout my journey as an apprentice for showing me the ways of being a carpenter. Thirdly I would like to thank my current host Buch Constructions for having me as part of their team and showing up on site everyday to get the job done! With many laughs along the way too. I would also like to thank the Master Builders Association for providing me with the opportunity to become an apprentice.

L-R: Kyle Clarke (2nd year carpenter) and Simon Smith (Mitre 10)

DECEMBER 2018

Wyatt Pietrobon Why did you become an apprentice? I became an apprentice carpenter for the Master Builders Association as soon as I could to gain life experience and get ahead as quick as possible. I’ve always been interested in building and doing practical hands on work and becoming an apprentice carpenter was the perfect choice. What do you enjoy the most about being an apprentice? My most favourite thing about being an apprentice carpenter is that is has a wide variety of different work residentially and commercially. There are many different paths to take in carpentry which makes the trade not only interesting to learn, but enjoyable to work in as well. On a day-to-day basis I’m always learning different things and using what I’ve learnt on future projects. What is your goal once you have completed your apprenticeship? My goal once I’ve fully completed my apprenticeship is to continue work in commercial formwork, hopefully working up the ranks and eventually into management. I also want to flip properties on the side, using first and second fix carpentry skills. Who would you like to thank? I would firstly like to thank my dad for showing me the construction trade, and giving me a taste of hard work and the achievements that can be obtained through it. I would like to thank Mitcon Formwork for sponsoring me into an apprenticeship and the many tradesmen teaching me to become a successful carpenter. Thank you to Master Builders as well for providing me the apprenticeship and a big thanks to my field co-ordinator Ben Morgan for the support and advice he has provided me throughout my apprenticeship 30

What does safety mean to you? Safety is probably the most important role in the construction industry and it is ensured that we do work safely so we can make it home in one piece. Due to the industry we work in, it’s so fast paced and physically demanding, it’s very important that safety is always double checked on any job site, and ensured that nothing major can go wrong. Construction is a dangerous job, accidents do happen, but the safety level on job sites these days is very good and rarely does anything major happen. I take safety very seriously, not only for myself but my work mates around me, and ensure we work efficiently and make it home safely. Field Coordinator comments: Wyatt has had a fantastic first year of his apprenticeship. He has settled into the construction industry rapidly and developed the necessary hand skills to successfully complete formwork on commercial sites. He is a reliable and hardworking apprentice who is eager to learn new skills. Wyatt is a great communicator with his colleagues on site and MBA. He consistently performs at a high standard. Commencement of apprenticeship: 15/01/2108 Current Host Employer: Mitcon Formwork L-R: Wyatt Pietrobon (1st year carpenter) and Simon Smith (Banner Mitre 10)

SA BUILDER AUTUMN 2019

JANUARY 2019

Wade Munchenberg Why did you become an apprentice? A mate asked me if I could help him build frames for a couple of days. After that, I knew that I wanted to continue with carpentry. I started my apprenticeship at Master Builders four years ago to gain some knowledge and experience just to make sure that I really wanted to do it. What do you enjoy most about being an apprentice? I think the best thing about being an apprentice carpenter is getting to do something different each day. When I was growing up, I knew I didn’t want to be inside and doing the same thing over and over again. So being an apprentice obviously lets me be outside every day and I can do something that I love. Getting freebies throughout the year from MBA is also a pretty good thing about being an apprentice. What is your goal once you have finished your apprenticeship? I’m quite happy with what I do at the moment so I think I’ll still stick around with the guys I’m currently with, but one day hopefully I’ll be able to run my own carpentry business once I get a few more years of experience in the field. Who would you like to thank? With no one in the family ever doing a trade before I was always going to struggle to start off with because I had no experience at building before. But thanks to Mark and Matty they really helped me to learn and have taught me mostly everything that I know. I’d also like to thank Bill Oliver from ATEC for teaching me different carpentry related things. I probably wouldn’t have learnt anywhere near as much stuff if he wasn’t so

INTERNSHIP PROGRAM

helpful with the other side of carpentry. Although I don’t do much second fix stuff, he showed me everything that wasn’t just framing. Ben and the MBA obviously deserve some thanks for selecting me for the award and for checking in often to make sure that I’m doing alright and still progressing well. What does safety mean to you? Safety is pretty important to me, I go by thinking that it’s easier to do a job safely than it is to grow back fingers and toes. Basically meaning that if you work too fast and dangerously, you’re bound to hurt yourself eventually. You’re better off slowing down and doing the right thing to make sure that you can continue to work in this job. Field Coordinator comments: Wade continues to develop and grow as a carpenter. He needs little guidance or support from MBA and is happy to solve problems by himself before asking for support. He follows all MBA polices and procedures and consistently has positive feedback from Trade school. Wade takes it upon himself to always communicate with MBA about his apprenticeship and complete his Take 5’s and site inductions. Wade has a positive can do attitude and is always grateful that he is out doing carpentry work. Commencement of apprenticeship: 18/05/2015 Current Host Employer: Mark Jarvinen

L-R: Alex Canova (Bianco) and Wade Munchenberg (4th year carpenter)

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MEMBERSHIP

Increasing opportunities for builders to engage with Chinese community Master Builders SA is very pleased to announce our new partnership with I AGE Media! Each edition of the publication now features a profile on a Master Builders SA member. This is a terrific way for our members to get in front of potential buyers, and best of all, for no cost! Here, I AGE Director Wayne Chao gives us an overview of I AGE and the burgeoning Chinese market. 2018 marked the 200th year of Chinese migration to Australia. Today Australia has a population of over 1.3 million Chinese migrants, a huge consumer market. As one of the service providers to Chinese community, I AGE MEDIA was established in 2007, focusing on delivering local messages to the South Australian Chinese community, linking the community to the mainstream. Starting with printed weekly press first, I AGE MEDIA now offers both traditional weekly print press and social media coverage through WeChat to cater both elderly readers and young and mid aged readers. I AGE MEDIAâ&#x20AC;&#x2122;s WeChat official account TodayAdelaide is the most subscribed local WeChat media channel, with over 25,000 local followers. It broadcasts on daily basis, including news, local events, real estate, education, investments and many more areas in its contents for the Chinese community. It becomes a must of the Chinese community daily life in Adelaide. The Real Estate section is one of our most read sections, given that buying a residential home is a very essential part of every migrant family. In recent years, Adelaideâ&#x20AC;&#x2122;s stable growth in real estate market attracted lots of buyers, investors and developers. In the Chinese community, many will choose city apartments and hot suburbs near school zones, especially eastern suburbs, for their investment or primary residential use. Property development is also a very popular industry that many Chinese migrants consider to step in, where a quality and reliable builder is always needed to guarantee the success of the development project. We have seen many good examples of such business collaborations from city apartment projects between Chinese developers and local builders. One thing for sure is that with the increasing demands from the Chinese migrant developers, there will be more and more opportunities for local builders to engage with Chinese community clients and develop business relationship.

PARTNERSHIP: Master Builders SA Policy and Communications Director Will Frogley with I AGE Media Director Wayne Chao.

If you want your business to feature in I AGE Media at NO CHARGE contact Will Frogley on 0422 052 728 32

SA BUILDER AUTUMN 2019

MEMBERSHIP

Seasonair continues to celebrate industry success Seasonair has provided heating, cooling and mechanical contracting services to the South Australian building and construction industry for over 47 years. Managing Director Mark Beatton is clearly proud that the company is considered a standout leader in this sector of the construction industry.

This in no doubt the case given Seasonair’s impressive line-up of existing and ever increasing clients as they range from architects, developers, builders, private entrepreneurs and various government agencies.

Design and construct services factor highly on the company’s range of expertise and it’s a continually increasing area of growth for the team. Emergency “We have a very professional team with a substantial breakdown repairs and general maintenance is another knowledge base. Our staff are not only incredibly well significant area of service provision and on speaking with versed in what they do, but they also take pride in what their clients, they all sing the company’s praises suggesting they do and they actually care about the outcomes and service solutions they create for our clients, which is pretty their honest, open and professional approach to business puts them clearly ahead of other businesses in this unique nowadays,” says Mark. competitive sector of the industry. “We make it our objective to exceed our clients “We offer a broad spectrum of services and can attend to expectations every time and we’re passionate about what breakdown calls 24 hours a day, which is something many we do, so I think that’s reflected in the end result and of our clients value a great deal,” says Mark. He goes on to the many long term relationships we have within the construction industry and our clients in general,” he says. say “air conditioning is not just about cooling in summer.

It’s more than that, it’s about creating and maintaining a safe and comfortable environment all year round and that’s something our team sets out to achieve at all times.” Working in a service-based industry, Mark and his team understand the importance of creating and sustaining positive business relationships which obviously includes providing outstanding service at all times. In today’s busy environment, where it seems we’re all strapped for time, its important to be able to deal with service providers who can create positive results and outcomes.

For further information, contact Seasonair on: 8277 9955.

Timber flooring:

Are your specs up to date? Included in both documents on timber flooring specifications is information on product requirements, site evaluation, tolerance and building requirements as well as details relating to the execution of the works. ATFA has invested a lot of time in compiling these documents to help alleviate issues so that projects run smoothly. If architects include these specifications with reference in their drawings and builders adhere to this information a smoother path can be expected and help negate the need for any additional time and money being spent fixing problems. Use of these specifications will assist in the project running efficiently and with maximum ease.

Timber floors have always been a sought-after household feature but understanding how to install, sand and coat solid timber floors and install engineered, laminate and bamboo flooring correctly is essential. The Australasian Timber Flooring Association (ATFA) proudly presents two new up to date specifications guiding on both the use of incorporating solid timber flooring as well as engineered, laminate and bamboo flooring on projects. Installation methods change over time and ATFA gives the most up to date information and requirements for timber flooring in order to keep members, architects, specifiers, building professionals and consumers ahead and at the forefront of this ever-changing industry.

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As a consumer, if you are planning to build or renovate please make sure your professionals are up to date with the latest specs regarding installation in order to avoid any warranty issues down the track. ATFA has two comprehensive specifications – which go into detailed facets of installing these floors. Please head to the ATFA official page to download and read at your convenience: www.floorchoices.com.au/timber-flooring-specifications.

For more information, to become a member or if you require any advice please call ATFA on 1300 361693, or visit www.floorchoices.com.au

WATERPROOFING The Australian Institute of Waterproofing - committed to raising waterproofing standards and training in Australia The Australian Institute of Waterproofing (AIW) represents the interests of the whole building industry in raising the standard of waterproofing in Australia by becoming the 'central source' of knowledge, augmented by members’ experience to mentor continuous change.

THE NUMBER ONE CAUSE OF BUILDING DEFECTS IN AUSTRALIA A statistic often-quoted in the waterproofing and insurance industry is that waterproofing is 1.8 per cent of construction cost but accounts for 83 per cent of building defect complaints. Waterproofing defects and failures, including internal water damage and water entering from the outside of a building, are the number one cause of building defects facing Australia’s construction landscape today. Defects from ineffective waterproofing represent a huge cost to business. Construction businesses not only have to deal with the frustration of managing water leak issues long after construction is complete, but also losing significant percentage of their profit margins due to waterproofing rectification and remedial services. Building damage caused by water leaks also impacts many property owners who are required to endure lengthy legal battles for rectification costs or outlay the expense themselves. COMMON CAUSES OF WATERPROOFING DEFECTS The causes of waterproofing damage and defects across building and construction sites are many and varied. Some of the more common causes are the following. Lack of contractor expertise When waterproofing services are overlooked in the planning phase of construction it is frequently due to a lack of contractor expertise. An inadequate knowledge of waterproofing issues can lead to inappropriate waterproofing membrane product selection, and/or incorrect installations that result in failure. A contractor without the right level of expertise can incorrectly diagnose the root cause of a waterproofing problem, which then results in the failure of expensive repairs to fix it. 34

Cost cutting Cost cutting on waterproofing in the building process is, at best, very short sighted. Water leaks and the extensive damage is creates very often leads to lengthy legal battles and expensive remediation works.

AIW MEMBER BENEFITS The AIW welcomes all construction industry professionals: architects, builders, developers, building designers, surveyors, manufacturers, affiliated trades etc.

Waterproofing contractors may attempt to cut costs by omitting recommended primers, or by selecting inferior, incorrect and inadequate waterproofing membrane products. Others may skip the many application techniques that are important to the long-term performance of a waterproofing system in this cost cutting culture.

Belonging to the AIW helps raise the standard of waterproofing in the industry and provides members with significant direct benefits.

The reality is that skimping on appropriate waterproofing at the build phase will inevitably end up costing the builder more. Quick fixes add up over time and are more likely to be more expensive and create more stress than high quality waterproofing properly installed the first time. Building movement Building settlement, building movement or an inadequate amount of expansion joints, or indeed the complete lack of them, can cause the waterproofing membrane to fail.

• Access to the latest technical information, including technical drawings • Access to ‘formal course’ and ‘outline’ training via our network association with AMA and our own course material • The right to use the AIW logo in members’ communication to build brand credibility. • ‘Forum’ web connectivity with others in the industry to update information or find solutions. • Contractors ‘lead’ generation in the local area or field of expertise • Greater connectivity to members’ websites • The opportunity to get a discounted business website designed • Economical annual membership fees in every category

This may be exacerbated by the selection of an inappropriate membrane, such as a system with inadequate elongation properties to cope with normal movement of a building envelope. Waterproofing membrane at the end of its effective service life Though product marketing may say otherwise, a waterproofing membrane unfortunately does not offer a permanent lifelong solution against water damage. Over time a membrane’s effectiveness will decrease, especially membranes exposed to the harsh rigours of the Australian climate. Knowing when to re-apply or install a completely new membrane is crucial to maintaining the long-term structural integrity of a building.

FOR MORE INFORMATION CONTACT THE AUSTRALIAN INSTITUTE OF WATERPROOFING: Phone: 1300 249 466 Website: www.waterproof.org.au CONTACT PAUL EVANS, PRESIDENT OF THE AUSTRALIAN INSTITUTE OF WATERPROOFING: Phone: 03 8812 2918 Website: www.waterproofingfew.com.au SA BUILDER AUTUMN 2019

Are your showers ticking time bombs? Despite builders best efforts, leaking showers are consistently listed in the QBCC’s 10 most common defects. Sadly, sometimes this is due to sub-standard workmanship, but most of the time it is the design of the shower itself which is creating the potential for disaster. Most contractors are at a complete loss as to why, but detailed testing has shown how, by the action of expansion and contraction, water is “pumped” along glue cavities to escape the shower enclosure, no matter how well it is water-proofed. The best way to prevent the problem is to seal the screen directly to the membrane, and NOT to the tiles. Waterstop Streamline provides: •

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UPDATES

Metricon VIP Networking Event

Franklin 40 - Display Home, Lightview

Following a successful year of winning eight industry awards for 2018, Metricon held their annual networking event, at the Metricon Franklin 40 Display at Lightsview on Thursday 8 November 2018. Metricon suppliers, customers and staff celebrated with roaming canapĂŠs made by Chef Simon Bryant, wine tastings by East End Cellars and a craft beer flight with Mismatch Brewing Co. Metricon Directors, Mario Biasin, Ross Palazzesi and Peter Langfelder attended the evening.

Simon Bryant

Stephen Rowe, Elvi Franzin, Julie-Anne Briscoe, Ian Markos

Peter Langfelder, Mario Baisin, Richard Bryant, Ross Palazzesi

Brooke Seward, Kirsty Stone

Mario Brasin, Georgie Taarnby

Gary Davenport, Simon Bryant, Lauren Ho, Raphael Nguyen

CJ Chetwynd, Neil Bisset, BJ Micic

PROJECT FEATURE

Kennettâ&#x20AC;&#x2122;s Music Suite at Cabra Dominican College Local commercial builders Kennett Pty Ltd have been in the construction business in South Australia since 1914 and it has stayed in the same family for the entire time. Many of their projects have won awards and project sectors range from leisure, education, aged care and health, automotive, government and more. Theyâ&#x20AC;&#x2122;ve forged strong relationships with architects, consultants and clients over the years and approximately 75 per cent of current projects have come about by repeat business. They are passionate about what they do and have strong company values.

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PROJECT FEATURE One such repeat business project has been at Cabra Dominican College, where Kennett has now engaged in three separate construction projects over the past three years – all achieved via a competitive tender or Managing Contractor fee process. The first project began in 2016 with a sizable refit and refurbishment of classrooms right in the centre of the school grounds. Kennett were appointed after a standard lump sum tender process and finished the project in 2017. Construction in a fully operating school is usually challenging plus this project had its fair share of architectural and structural challenges. The existing structure presented some real complexities to overcome for the builders and the engineers. The onsite project team worked extensively with consultants to find solutions and suggest alternatives in order to offer a successful outcome to the client. Together, after plenty of consultation, recommendations were considered, and solutions were found, and the project was delivered and considered a major success. The client understood Kennett had gone above and beyond to ensure a successful outcome was achieved and was extremely happy with the final build. It was decided by the school in late 2017 to replace an outdated toilet block and locker shed with a new purposebuilt music suite and Kennett were engaged after some initial budgets and scoping were undertaken. The project specifications were to build a 2-storey music hall for lessons and performances for Cabra’s instrumental and vocal music programme, as well as a linkway bridge to connect three separate buildings to the music suite. Kennett, together with Russell & Yelland Architects, pushed the boundaries to get as much value as possible out of the reasonably tight budget, which was regarded as great value management and met with the client’s expectations. Kennett has vast experience in the education sector and extensive history working in occupation at private and public schools. Although this was not considered a large-scale project, the complexities of a tight budget and a strong architectural presence meant the project was a good candidate for Building Information Modelling (BIM) technology. Russell and Yelland are industry leaders in this delivery method and Kennett had a young and enthusiastic team on the project. Construction Manager Paul Jennings headed-up the professional team with eagerness to gain BIM experience. Project Manager Phil Franklyn joined with Contract Administrator Harrison Dewar and Site Manager Scott Guthridge to work alongside the architectural team to deliver a near-flawless project. Interestingly, the key personnel from both the builder and architect that delivered this project were all under 28 years of age. The focus and determination of this young team to work collaboratively and be outcomes and solution orientated was a credit to all involved.

considerations along the way which made a big impact on the final build. Initially it was suggested that the building should have a full glass façade right across the northern side of the building, but the BIM modelling showed that concept didn’t work acoustically, so it was changed to a triangular shape glass panel. This one decision helped offset the diagonal lines surrounding the music suite and complemented the nearby heritage-listed buildings. The triangular shape window perfectly reflects the gable end of the abbey building which has created a stunning mix of old and new all in one location and is often remarked upon by the school community. James Kennett and Phil Franklyn were charged by the architect to assist in coming up with a practical and inexpensive ceiling solution that incorporated the acoustic requirements with services delivery, such as mechanical and lighting. The final solution worked perfectly as an acoustic solution and the lighting and mechanical services are neatly hidden between the sawtooth panels. Full access to all services behind the ceiling is made available via removable joinery panels fixed with stainless steel fixings. A key part of this project was the bridge linking the new music suite to two other existing building, one of which is heritage-listed. The request was for it to be thin and unobtrusive which was achieved after consultation between Kennett, Russell & Yelland and CPR Engineers. The spine of the bridge is a structurally sound thin steel box which curves on a tightening radius towards the other buildings. Electrical feeds, security and communication lines were inserted through the spine as a neat and practical solution. The bridge’s glass balustrade also helped to create a feeling of space, light and unobtrusiveness.

The entire music suite project was considered a great success by the client and relationships have certainly solidified even more so between Kennett, Russell and Yelland and Cabra since this project finished. There were very few minor finishing rectifications that were needed at completion. The success of this team of architect, builder and client all working together to achieve the very best quality outcomes has been paramount to the success of the Using BIM technology offers a detailed insight into the project, proving that relationships and collaborations are pricing and construction methodology of a building, of utmost importance in this industry. This type of project while it’s being drawn and offers extremely accurate information during the process. There were some aesthetic and delivery model is where true value is found. 38

The school has since occupied the premises with their ensembles, bands and choirs and has enjoyed praise from the school community. The music suite is a beautiful addition to a historically significant school and sits beautifully amongst heritage-listed buildings offering a truly spectacular contrast between old and new. The official opening event was held on Friday 8th February when the school and community celebrated together and named the building the Thérése Sweeney Music Centre after Sister Mary Thérése Sweeney, a wellrespected teacher and old scholar who died in 2003. The performances on the evening included the captains of the music programme on piano and vocals, along with a large school choir. A delighted crowd confirmed the success of the acoustics of the room and appreciation of the talented students. School Principal Dr Helen Riekie spoke to the crowd about the construction process and was grateful to the architectural and construction teams involved. “Thank you [also] to Kennett, particularly James, Scott, Phil and Paul. Thank you for working so closely with us and finding creative, practical solutions and ways forward. We are grateful not only for your work and expertise, but also for the manner in which you have worked with us. Thank you.” The final part of this story brings us to 2018, when Cabra Dominican College extended an invitation to building contractors to submit a tender for the substantial redevelopment of their old gymnasium. Kennett was appointed as the managing contractor for the gymnasium project and the same project team seamlessly transitioned from one project to another on the same site. Construction Manager Paul Jennings, Project Manager Phil Franklyn and Site Manager Scott Guthridge began works in December, along with Contract Administrator Harrison Dewar. Russell & Yelland are the Architects once again and Lucid Consulting are the services engineers. The gymnasium itself will complement the existing design of the music suite. It’s modern, angular lines and glass reflections will be another eye-catching feature in the school grounds and will build upon the theme of old working with new. SA BUILDER AUTUMN 2019

One theme is consistent throughout this story. Kennett appears to offer the same passion for construction, no matter what the project value is. They have strong company values and have proven their commitment to working collaboratively with consultants and clients. Together with a strong architectural and consultant team they have achieved an outstanding result for Cabra Dominican College and the school community. Construction of the gymnasium is due for completion in October 2019 and we look forward to seeing the final product. Visit kennettbuilders.com.au if you’d like to find out more about one of our oldest construction companies in South Australia.

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We deliver excellent service that stands out from the rest. 6 Barrington Ave Enfield SA 5085 0469 289 437 anztilingspecialists@yahoo.com.au 0424 727 766

The Thérèse Sweeney Music Centre Cabra Dominican College

Cabra Dominican College | 225 Cross Road Cumberland Park SA 5041 | www.cabra.catholic.edu.au | Phone: 08 8179 2400 WWW.MBASA.COM.AU

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SA BUILDER AUTUMN 2019

Master Builders SA Suppliers Over 100 suppliers offer discounts to Master Builder SA members that will beneﬁt you in your business. To access the extensive range of suppliers listed in our Supplier Directory go to the Members Portal at mbasa.com.au and click on login. Here are just some of the suppliers you will ﬁnd there:

Access Hardware

Glimpse Home Improvements

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Alexander Symonds

GO Shelving

Onesteel Reinforcing Pty Limited

Anna Roussos Recruitment + Advisory

Gripset Industries

OpenBook Howden

APT Management Services

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Australian Timbers

Hanson Construction Materials

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Holcim (Australia)

Best Bar Reinforcements

Hume Doors & Timber (SA)

Bettacrete Precast

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Bianco Construction & Industrial Supplies

Jolong Australia

Bianco Sourcecorp

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CR Kennedy

Stratco (SA)

Marion Sand & Metal

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Maxispan

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Dial Before You Dig SA/NT Inc.

MC Labour Services

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As a member you are also entitled to receive exclusive deals for your Telstra phone, Caltex fuel purchases, health insurance and Toyota vehicles with Gold Fleet level savings. You can also save money through the Master Builders SA Frequent Values Program, which offers members great discounts on dining, travelling and lots more. Download the Master Builders SA App and consolidate and all your key membership resources including the Frequent Values Program into one easily accessible place, your phone or tablet.

WE GET IT. We understand your needs because weâ&#x20AC;&#x2122;re the industry experts. General insurers might be able to offer you cover, but would you bet your business on it being done right? Would you have an electrician tile a bathroom or a bricklayer plumb a kitchen?

The insurance industry is no different. Entrusting your business with a specialist construction insurance broker ensures you have the best possible coverage, expertise to handle claims and provide risk management.

Our business is built on advice.

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