SA Builder Spring 2018

THE OFFICIAL JOURNAL OF THE MASTER BUILDERS ASSOCIATION OF SOUTH AUSTRALIA

SPRING 2018

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Steven Marshall’s plan to slash red tape

BUILDING DREAMS

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MBAIS_BuiltOnAdvice_235x275_SA_v1.pdf

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8/8/18

4:00 pm

THE OFFICIAL JOURNAL OF THE MASTER BUILDERS ASSOCIATION OF SOUTH AUSTRALIA

CONTENTS WE GET IT. We understand your needs because we’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.

SPRING 2018

BUILDER

Candice Klau

MBA Insurance Services South Australia

PRODUCTIVITY COMMISSION:

ce broker delivering profits MBAIS is the only insuran y. g & construction industr directly back to the buildin

Steven Marshall’s plan to slash red tape

BUILDING DREAMS

for SA’s most deserving kids HARDCORE CONSERVATIVE:

HUNGRY FOR THE CROWN:

Cory Bernardi

Peter Malinauskas

SPRING 2018

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Cover image: Finesse Built’s Award winning Mclaren Vale build Buildings Excellence Award 2018 winner, Excellence in a Contract Home $1m to $1.5m and Residential Project of the Year 2018

Hansen Yuncken Celebrating 100 years

Regulars FOREWORDS CEO’S Report

4

President’s Message

6

INTERVIEW

UPDATES Professional Indemnity Insurance

12

Building a life-changing career

12

Saving for your first home?

There’s a new scheme in town

13

Security of Payments Update

14

Tendering Guidelines for the South Australian Construction Industry

14

Digital licences for occupational licence holders

2

Features President: Peter Salveson

Hungry for the Crown: Is Peter Malinauskas the real deal?

Deputy President: Andrew Marshall

16

Vice Presidents: Christopher Leopold, Enzo Zito Past President: Richard Bryant

15

Cory Bernardi: Hardcore Conservative 22

8

Councillors: Troy Klemm, Jock Merrigan, Helen Papas, Nick Abley, Morry Canala, Jan Goetze, Tom Emmett, Neil Mossop, Fred Pascale, Will Chapman, Patrick Innes, Jeffrey Piotto.

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Master Builders South Australia: PO Box 10014 Gouger St. 47 South Terrace, Adelaide, South Australia

FEATURES Productivity Commission Brave new world of planning has knock-on effect on building industry

Treasurer: Mark Beatton

Phone: (08) 8211 7466

Changing attitudes to skilled careers

Fax: (08) 8231 5240

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Electricity and Water Meter Installations 15

Minister for Industry and Skills

Hire an apprentice

18

Building Dreams for SA’s most

Upcoming training course dates

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deserving kids

19

MEMBERSHIP Apprentice of the Month

20

Health Benefits of Good Work

26

Host of the Month

21

Email: buildsa@mbasa.com.au Executive Editor: Will Frogley

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Social pages

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PROJECT FEATURES

WHAT’S NEW

40

Hansen Yuncken

Industry Forecasts

Phone: +61 7 5629 5310 Email: marketing@arkmedia.net.au

SA’s Building and Construction

Member Profile: Alan Sheppard Constructions

Published by: ark:media

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Web: www.arkmedia.net.au Managing Editor: Susan Guilfoyle Design Team: Andrew Crabb, Arlen Chidzey Advertising Sales: Rose Delosreyes, Scott Sharples, Paul Baird

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CEO’S REPORT

Business and consumer confidence in South Australia is booming Ian Markos

The latest BankSA State Monitor, conducted by independent research firm The Sexton Marketing Group, reveals business confidence is at an eightyear high, having spiked 12.2 points since the last survey in February.

The report showed business confidence is highest in the construction, recreational, finance and manufacturing sectors. Pride in South Australia has risen across the state for consumers and businesses, consumers aged between 25-34 are the most confident in the state, and there is a higher intention by small and medium enterprises to create additional employment over next three months.

In June South Australia’s official unemployment rate fell to 5.4 per cent, its lowest level since November 2012, after 19,000 jobs were created in the state over the previous year. At 4.7 per cent, only New South Wales recorded a better result. Strong job creation saw the number of people employed hit 843,700 – up 1,700 from May. This is an amazing turnaround given it wasn’t that long ago some analysts were predicting a double digit unemployment rate in the wake of Holden’s closure.

The newly-elected Marshall Government has been very keen to promote its pro-business credentials, and through the establishment of the SA Productivity Commission, has set the goal of South Australia being “the least regulated state in the country”. The world economy has vastly improved, interest rates are low, the Federal Budget provided some tax cuts, and in June the Prime Minister was in Adelaide to announce the $35 billion Future Frigate project had been awarded to BAE Systems, securing thousands of South Australian jobs at our shipyards. The construction sector is expected to deliver $13 billion in projects during 2017/18, up $1 billion on the previous financial year. There has been an apartment boom due to incentives such as off-the-plan concessions and Adelaide City Council’s ‘five year rates holiday’ to new owner occupiers.

However now is definitely not the time for complacency. I don’t want to throw a bucket of water on the campfire, because without doubt there is much to be positive about, but translating bullish confidence into further strong economic outcomes will require hard work and the right policies.

The latest Master Builders Economic Forecast for South Australia, included in this edition of SA Builder, predicts a bleaker view beyond 2019 with the value of construction work anticipated to fall every year through to 2022. Most work underway is expected to wrap up by the end of the year and the value of projects in planning is lower. Building approvals for private sector houses have declined for nine consecutive 4

months. It is clear reforms are required to stimulate the market and protect jobs in the industry.

A strong pipeline of transport, education and health infrastructure must be maintained to create jobs and improve the lives of South Australian people, communities and businesses. Unless South Australia’s sluggish population growth is addressed there will continue to be a low ceiling on our economic potential. Everyone knows young South Australians are leaving the state in droves – we need to give them reasons to stay instead of reasons to leave. Policies that have been proven to stimulate interstate housing markets in the eastern states – such as a stamp duty exemption for first homebuyers – must be adopted by the State Government as a matter of urgency.

It is an interesting time for our industry and I want SA Builder to reflect that by being an entertaining and informative read. Besides the Economic Forecast, this edition features an overview of the Productivity Commission

by Premier Steven Marshall. This is a tremendous opportunity to reduce red tape and improve the efficiency of our industry and we want to hear from members about what you would like referred to the Commission so we can compile a comprehensive submission. Chair of the Planning Commission Tim Anderson QC gives an overview of planning reforms.

It is absolutely crucial that the Planning and Design Code is written in a way that delivers consistent, faster and more approvals. We cannot allow a vocal minority to dictate the structure of the Code. Adelaide has come too far in the past few years to regress to being a cemetery with traffic lights.

Industry and Skills Minister David Pisoni provides an update on what the Marshall Government is doing to raise the prestige of apprenticeships.

There is also profiles on Alan Sheppard, a true doyen of the building industry, Peter Malinauskas, a rising star of South Australia’s political scene, and “Hardcore Conservative” Cory Bernardi, one of the true characters of the Federal Parliament. Get amongst it!

Ian Markos CEO, Master Builders SA

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PRESIDENT’S REPORT

If you fail to plan, plan to fail Peter Salveson

According to KPMG Research, digital innovation is clearly the number one concern of Australia’s business leaders. Rounding out the “top ten” were cost competitiveness, energy (cost, reliability and policy), regulation, government efficiencies, public trust, infrastructure and liveable cities, fiscal sustainability, big data and health. Most of these challenges are confronting our own Association, which is constantly striving to provide high value and relevant services to members in a dynamic and everchanging world.

Last month’s Strategic Planning Day with Council members and senior Master Builders SA staff provided a terrific opportunity to lay the foundations to create a high level of clarity and alignment on the future direction of our Association and to enhance its ability to deliver outstanding services and value for members. By frankly discussing both the risks and opportunities in front of us, identifying the key interventions we need to implement and establishing momentum and clarity of direction over 2018/19 and the years ahead, we were united in our sense of purpose: that the Association exists for the betterment of members and the building and construction industry.

We are indeed fortunate to have such high calibre Council members.

They all have a wealth of experience and hold high expectations. It was terrific to hear their ideas about how to achieve our goal of becoming South Australia’s leading industry association. The services we provide, the professionalism of the industry, the changing client base, how we communicate to members and key stakeholders as well as many other issues were all on the table.

A top priority was raising the value of the brand for members. A big part of this is signalling to customers, industry, politicians, the media and the general public what it means to be a Master Builder. This is a challenge for Council, senior staff and members alike. Regardless of whether they are a generalist builder or they specialise in a certain area, being a Master Builder means proficiency and professionalism. Master Builders perform work to the highest quality and operate under a strict code of conduct.

They should act with integrity at all times, be fully licensed and comply with all relevant laws, codes and regulations that apply to the building industry. As members, we need to act with integrity at all times, and be fair and honest in all dealings we have with clients, other professionals and members of the public. We should not only ensure we maintain existing skills, but actively improve on them. We all need to raise the bar if we are going to improve the image of our industry.

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Another high priority was maintaining our influence as a body that represents the industry with a high level of political clout. In the past month, senior ministers in the Marshall Government have attended Master Builders SA committee meetings. These were tremendous opportunities for members to engage directly with key decision makers and testament to how highly-regarded our Association is. The Government has shown it is serious about consulting with industry to achieve a business-led economic recovery in South Australia. The establishment of the South Australian Productivity Commission, a long-time Master Builders SA policy, provides the chance to work closely with the government to not only reduce red tape and the cost of doing business, but also help generate jobs, investment and economic growth in South Australia. We look forward to having continued representation from the highest echelons of government at committee meetings and other events in the future so we can improve housing affordability, ensure a high level of government infrastructure spending, increase the number of apprenticeships and see a Planning and Design Code that is written in a way that will deliver consistent, more and faster approvals.

Master Builders SA will never take your membership for granted. Whilst we are proud of our history, there is no point in thinking “this is what we have always done”– the past belongs in the past. Master Builders’ hardworking staff are always listening, always asking and implementing relentless improvements to deliver value for members. They are committed to delivering a very high level of customer service, and are committed to developing innovative products that will make running your business easier and more cost effective. One example of how we have embraced technology is through Master Builders Suite, an online business management tool that is included in your membership and allows you to access your key information in the one place at any time and from anywhere. The future success of the Association will be driven by resilient employees – experts who thrive on multitasking and a team approach, all whilst pushing themselves to continually improve.

Members can be assured the Association is in good hands.

Peter Salveson President, Master Builders SA

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FEATURE

Productivity Commission For too long, South Australia’s productivity growth has failed to keep pace with the rest of the developed world.

productivity commissions, to the benefit of their respective communities.

Under the former administration, government became much more involved in our daily lives.

The Commission will be tasked with identifying ways to reduce the regulatory burden imposed by government while still delivering the required outcomes. It will advise the government on ways to modernise and simplify regulation that has become outdated or which imposes unnecessary costs on South Australian businesses and families, allowing businesses to grow and create jobs and families to raise their living standards.

The more laws and regulations we have, the greater the costs to businesses and individuals in implementation, compliance and administration costs. So often this red tape is unnecessary or inefficiently applied, preventing businesses from growing and employing more people, and significantly adding to cost of living pressures.

Labour productivity has lagged in South Australia as other jurisdictions have seen massive increases in private capital investment, as well as more effective investment in skills, education and training.

Equally, our state has missed opportunities to grow multifactor productivity – something that, if continued, will drag on growth and prosperity in an increasingly competitive, technology-enabled world.

That is why my government has moved to establish the South Australian Productivity Commission.

The key roles of the productivity commission will include undertaking public inquiries and providing advice to lower costs for businesses and families and to make it easier to undertake business in South Australia through regulatory reform.

• The objects of the Commission will include: • Improving the competitiveness of private sector investment • Reducing the cost of regulation • Increasing employment • Improving the quality and efficiency of services delivered or funded by government • Facilitating structural changes in our economy • Promoting regional development

I first advocated that South Australia needed its own productivity commission ahead of the 2014 election.

Since then, the New South Wales and Queensland governments have established their own state-based

Our preferred model would involve the establishment of a commission as a statutory authority, however we are continuing to deliver on our commitment by establishing the body administratively.

We cannot continue to rely on the ways of the past and hope for a different outcome. We equally cannot assume that the laws and regulations that were developed at other points in time remain fit-for-purpose in today’s world.

We are committed to bringing a new approach to regulation and service provision.

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The Commission will play a vital role in improving the efficiency and productivity of the state’s economy, generating jobs, investment and economic growth for South Australia. It will instil a high level of public confidence that the advice and recommendations it provides are based on rigorous analysis and are politically impartial.

The Commission will have a vital role to play in the government’s plans to generate jobs, investment and economic growth in South Australia. To do that, our state needs a more efficient and productive public sector, a more productive private sector and more productive infrastructure for our state.

This independent body of experts will receive referrals of inquiries from Government asking the commission to consider how to address specific challenges, reduce the regulatory burden and improve productivity in sectors and areas of the economy.

The evidence, analysis and recommendations developed through this process will be made public in the commission’s final reports, providing the South Australian people with confidence in the quality and independence of advice being received by government.

The Commission will bring together the expertise of our private and public sectors to provide the effective collaboration needed to ensure South Australia’s economic development is being driven by the best available advice and expertise.

Author

Steven Marshall, Premier SA BUILDER SPRING 2018

FEATURE

Brave new world of planning has knock-on effect on building industry South Australia is undergoing the biggest modernisation of its planning system in more than 20 years. The introduction of the new Planning, Development and Infrastructure Act 2016 (the Act) kick-started a sectorwide transformation that has sought to bring clarity, simplicity, efficiency and innovation to planning and development in South Australia.

To achieve its mandate, the building reform program will deliver three new instruments: 1. Ministerial Building Standards The Ministerial Building Standards will be derived from (and replace) existing Ministerial Building Specifications, but will be amended and consolidated as required to provide clearer building rules related to South Australian variations under the National At the centre of this transformation are a number of key Construction Code. These Standards will seek to instruments that will help secure the long-term liveability, facilitate improved health and safety in existing prosperity and sustainability of our state. These include buildings; maintenance of essential safety provisions; the new State Planning Policies, which for the first time set and onsite retention of stormwater. out a state-wide vision for land use in South Australia, as 2. Updated building regulations well as the Planning and Design Code, which will replace Current regulations related to building will be the 72 development plans currently in use to become the reviewed to improve consistency and useability. New ‘one-stop-shop’ of governing principles for planners and building regulations will be prepared to better support developers state-wide. improved performance, integrity and accountability in the building system, and to address any gaps or Impact of planning reform on the building sector areas of emerging need in the building sector. Existing Of course the success of our new planning system will regulations and consent protocols will be enhanced be dependent on the state having an equally modern and clarified where needed, such as those related and effective building sector to work alongside it and to swimming pool safety, temporary structures and support it. As such, reforms to the planning sector have building on boundaries. necessitated a number of reciprocal reforms in the 3. New council inspection policies building sector. Although these reforms are considered A state-wide set of council inspection policies will be to be more evolutionary than revolutionary, they will still created to foster a more consistent and improved level of involve the development of new building instruments compliance across council regions. These can be tailored that aspire to deliver a more robust, responsive and to meet a range of council requirements. This is a change accountable building industry. from the current system whereby councils determine many of their own inspection policies based on set criteria.

This complementary program of building reform is not only driven by the Act, but also by broad building trends, All of these new instruments will be developed by the such as technological innovation and the growing need to Department of Planning, Transport and Infrastructure build public trust in building and construction standards. (the Department) in collaboration with experts from the The increasingly complex responsibilities of building public and private sectors and with oversight from the professionals and the outcomes of the 2018 Shergold and State Planning Commission’s Building Committee.

Weir Report are also key motivating factors.

Synergies between the planning and building reforms The building reform program aims to achieve three main Changes to the building sector cannot be viewed in objectives, namely to strengthen the building regulatory isolation. They will have particular synergy with South system through improved building controls; facilitate the Australia’s new planning system via two major new creation of high quality, well-constructed and compliant initiatives: the Accredited Professionals Scheme and the buildings; and promote greater economic investment ePlanning solution. in South Australia. All building professionals who are responsible for applying South Australia’s building Accredited Professionals Scheme regulations, such as building certifiers, building The Accredited Professionals Scheme is a new scheme that officers and council inspectors, will be affected by the will help ensure that planning and building professionals building reform. are appropriately qualified to undertake decisions related to WWW.MBASA.COM.AU

development assessments. As part of the Scheme, decisionmakers in the building profession will need to be registered and accredited within defined classes and demonstrate that they hold the relevant qualifications and level of experience to make key decisions. They will also be required to hold all necessary insurance, undertake specified Continuing Professional Development (CPD) units and comply with the Accredited Professionals Code of Conduct. ePlanning solution As part of current planning reforms, South Australia’s paper-based planning system will soon migrate to a state-wide ePlanning platform. As part of this change, all development applications across the state will be lodged via a 24-hour online portal (the SA Planning Portal).

In this future state, the portal will become the central location for building practitioner registration, building approvals and building inspection records. All Ministerial Building Standards, building regulations and inspection policies will also be housed on the SA Planning Portal.

Next steps For South Australia to thrive in the 21st century as a socially, environmentally and economically progressive state, it needs to adopt a continuous improvement approach to its built environment and natural resources.

As such, current reforms should not represent the start and end of ‘out-the-box’ thinking; rather they should provide the impetus for ongoing innovation within both the planning and building professions. Economic growth and environmental sustainability is dependent on the planning and building sectors working in collaboration with shared goals, accountability and vision.

FURTHER INFORMATION:

on current planning and building reforms can be found on the SA Planning Portal: www.saplanningportal.sa.gov.au/

Author

Tim Anderson QC Chair State Planning Commission 9

FEATURE

Changing attitudes to skilled careers

The decision to pursue a technical qualification or a university degree is one of the most difficult for students planning their careers.

Traditionally, higher education has been a popular path for young people and one that is heavily encouraged by a range of groups, including parents, teachers and career counsellors. There is substantial evidence that many students are steered away from vocational education and training pathways and skilled careers towards university.

This has resulted in many young people feeling the pressure to go to university and spend three years studying a degree, all while accumulating a large debt that may take them years to pay back. And as our economy continues to evolve and new industries emerge, university degrees are not necessarily providing people with the right skills to fill the gaps in the market.

To address these issues and encourage more young people to pursue a career through a technical qualification as a first option, not as a fallback plan, is going to require a cultural mind-shift.

The Marshall Liberal Government is working to change attitudes towards skilled careers. We want to promote the career and business opportunities that flow from traineeships and apprenticeships.

more than 20,000 over four years, and we’ve committed $100 million to make this happen. We have also secured a further $103 million from the Australian Government to deliver on this promise.

The construction industry will be a driving force behind delivering this initiative. As a key sector in employing apprentices, this will be a valuable opportunity for the building trades to get on board and play a key role in training a new wave of apprentices and trainees who will become tomorrow’s entrepreneurs and business owners.

The construction industry is well-placed to benefit from some big changes we have in the works to make it easier and more lucrative to take on new apprentices and trainees.

We will work closely with employers through a streamlined registration process that will cut red tape.

We will make it possible for apprentices to start younger and ‘earn and learn’ as part of a flexible apprenticeship pathway. This means that high school students can complete the first year of their apprenticeship, full-time and being paid, while also achieving their SACE.

We will give industries, including building and construction, a stronger voice in the training system, support training providers to expand and boost the Apprenticeships are more than just vocational study—they quality of their training, and design strategies and new provide people of all ages and backgrounds with high-level systems that meet industry needs and provide more c skills, paid experience and real job outcomes, without hoice for job seekers. substantial debt when they’re finished.

We are also addressing areas where industry is struggling I know the building and construction industry doesn’t due to current skills shortages, and supporting those in need any convincing of the benefits of a trade career. Many rural and regional areas. of South Australia’s construction businesses began as a single tradesperson who went on to employ their own Over the next few years, a wave of massive economic apprentices and build successful empires. opportunity is heading our way with defence projects ramping up and significant jobs growth in areas like The South Australian Government is increasing the digital technology across all industries. This activity will number of apprentices and trainees in South Australia by generate exciting opportunities which will keep more of 10

our young people here instead of moving interstate or overseas for a job.

We need to attract more of our young people into skilled training now so they can take advantage of these opportunities, and so we have the skilled workforce for new projects and established industries like building and construction.

Promoting the value of a trade and an entrepreneurial focus to the younger generation is a core focus of the Marshall Liberal Government. That’s why we will be introducing entrepreneurial education into our schools, including new SACE subjects that focus on recognising opportunity and starting a business, and creating four new entrepreneurial high schools.

We know the key to a successful state and economy is our young people. In the coming months we will be undertaking a comprehensive awareness campaign to inform teachers, principals, career counsellors and families of the opportunities made possible by traineeships and apprenticeships.

By working together, we can encourage more young people to consider pursuing a technical career. I’m confident the building and construction industry will play a crucial role in realising this goal as we turn around attitudes to skilled careers.

Author

David Pisoni Minister for Industry and Skills SA BUILDER SPRING 2018

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UPDATES

Professional Indemnity Insurance – Industry Impacting Coverage Changes Over the past 12 months the Professional Indemnity (PI) insurance market has started to raise premiums due to increased claims and legal costs. More recently, many insurers have begun applying exclusions to PI policies within the construction industry which can severely limit the coverage provided, and it’s important for MBA members to be aware of how these restrictions can impact your business in the event of a claim.

The emerging scrutiny from PI insurers regarding the building industry is largely related to product specification. Of most concern is the use of non-compliant building products, most notably cladding. These concerns are in direct response to the fires at the Lacrosse Building and Grenfell Tower, along with subsequent identification and increased awareness of the widespread use of non-compliant cladding within Australia and overseas.

In addition to cladding, the interim report from the 2015 senate inquiry into non-compliant building products also highlighted concerns with non-compliant electrical cables, issues with asbestos contained in various imported building products including cement compound boards, non-compliant engineered wood products, and also non-compliant glass.

While premium increases are understandably a concern, recently insurers have started to apply exclusions which severely limit coverage for not just non-compliant cladding, but all non-compliant building products. Some insurers are even seeking to exclude cover for claims related to non-conforming products or products that are not fit for their intended purpose. With PI insurance written on a ‘claims made’ basis, having a severe exclusion imposed on your policy in 2018, will result in any new claims or actions brought against you being subject to the new, potentially very limited PI coverage. Effectively if legal action is brought against a builder in 2018 for design/product specification which relates to a past project from several years ago, the applicable insurance policy would be the 2018 coverage, hence the importance and seriousness of ensuring your PI cover does not contain extreme limitations.

Many builders may feel they only have a limited exposure to issues related to design or product specification. Should any non-compliant products lead to property damage or injury, the builder will almost certainly be involved in any litigation, incurring legal defence costs at a minimum, and potentially a portion of the final judgement. Even without any subsequent damage or injury, the removal

and rectification of any projects containing non-compliant products is likely to be very costly, with builders again expected to be pursued for at least a portion of the costs.

These issues are complex and time-consuming, with each situation different, leading to further increased legal costs.

This emerging issue is also having broader impacts on the wider construction industry, with other occupations like building surveyors, architects, and engineers similarly experiencing significant price increases and coverage restrictions. While we expect to see further regulations and action on building products over the coming months and years, and there will continue to be insurance market fluctuations on pricing and coverage, it’s critical to understand exactly how your current PI cover would respond in the event of a claim related to product specification.

When reviewing PI coverage it’s important to ensure you are aware of any reductions or limitations in cover which may be imposed on your renewal. Check with your insurance broker, or contact MBA Insurance Services to better understand how your policy will respond in the event of a loss or claim brought against you.

FEATURE

Building a

life-changing career In 2016, Sarah Constructions was appointed builder of the second stage of Minda’s Master Plan, and began working with MJP Employment Services, the disability employment service operated by Minda Incorporated, to assist job seekers.

An open employment branch of Minda, MJP assists people with barriers to learning and mild intellectual disability.

“After undertaking some of the modules from the Certificate II in Horticulture, 3 clients from MJP were employed to work as Gate Keepers and one employed as an Administration Assistant in the site office,” MJP Employment Services Manager Olivia Sorre said.

“Participants were pre-trained to industry standard, including white card training and other determined skillsets, for example Workzone Traffic Management; they then upskilled on-the-job, so they could participate in more difficult tasks as the project progressed.”

During the 18 months of employment there were a range of challenges for the job seekers – being called in at short notice, travelling from as far as Seaford and Taperoo to the construction site at Brighton, and shifts commencing from 6:30am and sometimes running until 6:30pm.

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Nathan White and Corey McEvoy

“I’m very pleased to say that MJP’s clients rose to the challenge and exceeded expectations, with management at Sarah Constructions saying they had performed outstanding work,” Ms Sorre said.

“The motivation to be successful in these roles enabled them to prove to their families, Sarah Constructions and themselves that they could become valuable employees.”

With the completion of the project drawing near, the team at Sarah Constructions are now in the process of seeking opportunities to relocate employees to their 46 sites across Adelaide.

“There have been so many job seekers assisted by MJP into the workforce and many more are looking for work,” Ms Sorre said.

“If you have any duties you think could suit an MJP employment seeker, please call our Job Creation Coordinator, David Plummer on 0407 792 247 to make a time to discuss the many financial, practical and supportive benefits.”

SA BUILDER SPRING 2018

UPDATES

Saving for your first home?

There's a new scheme in town To help more first home buyers get into the property market, the Federal Government introduced a First Home Super Saver (FHSS) scheme.

The FHSS scheme allows you to make voluntary contributions (before or after tax) into your super, which you can then later withdraw for your first home deposit. You can contribute up to $15,000 per financial year, up to a total of $30,000.

The main benefits of the scheme are taking advantage of reduced tax rates through super and potentially higher earnings on your savings – which all helps in saving up for a deposit!

You may be eligible if you: • Have never owned property or land in Australia • intend on purchasing a property for residential purposes; and • will live in the property for at least six of the first 12 months you own the property How does it work?

Any voluntary contributions you’ve made into your super from 1 July 2017 could be eligible savings as part of the scheme – there’s no need to open a separate account.

Any before-tax contributions (for example, salary sacrifice) will be taxed at 15% on the way in, and any investment earnings on these contributions will also be taxed at 15%.

WWW.MBASA.COM.AU

You’ll be able to withdraw these funds by applying to the Australian Taxation Office (ATO).

Once determining you’re eligible, the ATO will arrange for your money to be paid to you from your super fund. You then have 12 months to sign a contract – or you may be able to ask the ATO for a 12-month extension. Alternatively, you could recontribute the amount into your super.

Benefits of the scheme • Tax savings. Before-tax contributions into super (for example, through salary sacrificing) will be taxed at 15%. For most people, this will be less than their marginal tax rate - which could be up to 45% plus the Medicare levy.

• Potentially higher earnings on your savings. You might earn a higher return on your savings if the deemed rate is higher than what you’d get in your regular savings account or term deposit.

Want to talk it over?

If this scheme interests you, it’s a good idea to talk to a tax agent or financial adviser to see whether this suits your situation.

Cbus members can access qualified financial advisers over the phone as part of their membership on 1300 361 784 or get more information at www.cbussuper.com.au Disclaimer: The information is about Cbus. It doesn’t take into account your specific needs, so you should look to your own financial position, objectives and requirements before making any financial decisions. Read the Cbus Product Disclosure Statement to decide whether Cbus is right for you, or call 1300 361 784 for a copy.

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UPDATES

Security of Payment Update – ABCC Imposes New Security of Payment Reporting Requirements The Australian Building and Construction Commission (ABCC) has established new mandatory reporting requirements for when code covered contractors must report payment disputes or delays to the ABCC. Industry participants must transition to these reporting requirements by 1 September 2018.

• A n amount is specified in a payment schedule or notice of dispute issued under security of payment legislation and not paid by the date prescribed by the legislation; • No payment schedule or notice of dispute is issued in response to a valid payment claim and the full amount of the payment claim is not paid by the date prescribed by the security of payment laws (this does not apply in What is changing?

Western Australia and the Northern Territory); Under the changes, entities who are covered by the • An adjudicator makes a determination under security Building Code 2016 (‘code covered entities’), will be of payment legislation and the adjudicated amount required to report any disputed or delayed progress is not paid by the date prescribed by the security of payments to the ABCC as soon as practicable after the date payment laws; on which the payment falls due. Contractors are required • A court, arbitrator, or expert issues a binding to report to the ABCC using the “security of payment determination and the amount determined is not paid reporting form,” which is available from the ABCC in accordance with the determination. website. The obligation to report applies to both claimants and respondents.

There is no obligation to report repeated individual instances of disputed or delayed payments under the When are disputed or delayed payments reportable to same contract. the ABCC? A code covered entity will be required to report a disputed What do I need to do? or delayed payment where: Code covered entities should ensure that their internal • An amount is certified by a Principal (or processes provide for the reporting of disputed or Superintendent) under a contract and not paid within delayed payments to the ABCC in accordance with the the contractual timeframe; above guidelines. Head contractors should review and

amend existing Workplace Relations Management Plans (WRMPs) to reflect the new reporting requirements.

What are the consequences for failing to report?

From 1 September 2018, any failure to report disputed or delayed payments to the ABCC may constitute a breach of the Building Code 2016. This may affect a contractor’s ability to tender for, or be awarded, Commonwealth funded building work.

Where do I find out more?

To find out more about the changes and how they affect your business, please contact Sam Condon, Lawyer and Manager Workplace Relations on 8211 7466, or the ABCC on 1800 003 338.

UPDATES

Tendering Guidelines for the South Australian Construction Industry Master Builders SA, in conjunction with the Royal Australian Institute of Architects and the Association of Consulting Architects, has updated Tendering Guidelines for the South Australian Construction Industry in order to reflect latest practices.

Tenders must be well managed in order to accurately and efficiently capture the true nature, value and risk profile of a project. The Guidelines have been written with the intention of establishing best practice tendering principles that encourage positive contractual relationships for the benefit of tenderers, clients and the entire industry.

Whilst the Guidelines are recommended procedures only, it is recommended that anybody preparing to tender for projects refers to them when preparing tender documents, and ensures their clients are fully informed of the recommendations.

Left to Right: Mario Dreosti, Peter Salveson, John Held

These Guidelines should apply at all levels of contracting. Therefore, the terms ‘client’ and ‘tenderer’ should be read as being applicable to each link in the procurement chain. For example, a contractor will act as a tenderer when dealing with their principal, and as a client when seeking tenders for subcontract packages from subcontractor tenderers. Similarly, references to ‘Architects” should be read to include The Guidelines reflect requirements under the National Code of Practice for Procurement other tender issuers or agents for owners. and the Australian Standard AS4120, in particular the requirement that principles of ethical behaviour must be adhered to by all parties, at all times, and at all levels. They The Guidelines were drafted with a traditional ‘fixed price lump sum’/’construct only’ also take into account the advent of electronic tendering and the special considerations delivery method in mind, but the principles are generally applicable in other forms of that arise in this context. procurement. They are available on the Master Builders website.

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SA BUILDER SPRING 2018

UPDATES

Digital licences for occupational licence holders

How do you obtain a digital licence or registration?

To access your licence/registration digitally, you will need to create a new mySA GOV account and then download the mySA GOV app.

Installing the mySA GOV app To download the mySA GOV app visit the App Store or Google Play. Once you have downloaded the app, log in using your mySA GOV account details.

Creating a mySA GOV account The mySA GOV account was formerly known as the EzyReg account. Users with an existing EzyReg account can log in to the mySA GOV account using the same login details.

The first time you access the app you will be asked to enter a four-digit PIN. You can then use this PIN to access your digital licence/registration through the app. Once you are logged in, you can add your licences/registrations by pressing the ‘+’ button in the top right corner (you can only add licences and registrations that you already have).

Enter your licence/registration details, if prompted, and then you’re ready to go digital.

The South Australian Government has introduced digital passes and licences. This means that South Australians can To create a new mySA GOV account visit: sa.gov.au/ carry selected government issued passes and licences on mysagov. When your account is active you will be asked an Apple or Android smart phone or tablet device. to confirm your identity before you can access the information and services in the account. You do not Builders, plumbers, gas fitters, electricians, and security need to confirm your identity if you only want to use the and investigation agents can now choose to carry their account and app to verify digital passes and licences. licences/registrations digitally. (Note: crowd controllers who opt to carry a digital licence must still wear The mySA GOV account will automatically verify a licence identification cards while working). holders licence/registration details against Consumer and Business Services systems.

Hard copy licences will continue to be issued. While businesses and customers transition to validating digital licences it is recommended that hard copy licences still be carried.

Digital licences are provided through the mySA GOV account and mySA GOV app. Digital licences displayed in the mySA GOV app are an electronic form of the existing physical licence/registration and are valid credentials.

Where can I get help?

For more information about the mySA GOV app and setting up a mySA GOV account visit: my.sa.gov.au

FURTHER INFORMATION:

For help creating a mySA GOV account call Service SA on 1300 450 422 (Monday to Friday) during business hours or email: myaccountassistance@sa.gov.au

UPDATES

Electricity and Water Meter Installations Requirements for electricity From 1 December 2017 SA Power Networks (SAPN) began phasing in the “Meter Contestability” program which has shifted the responsibility of electricity metering services away from SAPN over to the retailers. The phase-in period ended on 30 March 2018 so now all meters will be installed by electricity retailers instead of SAPN. Application for new connections are made through the SAPN website and their lodgment form (process flowchart attached). SAPN will provide the infrastructure up to, and energize, the meter isolator and the electricity retailer is responsible for the installation of the meter.

Information on the Meter Contestability can be found in the Industry News section of the SAPN website: www.sapowernetworks.com.au/centric/industry/contractors_and_ designers/industry_news.jsp Requirements for Water To avoid contamination of the water supply, a water meter with in-built backflow prevention device will be installed on site as part of the land division completion process. The SA Water connection policy states that SA Water will provide their “offer to connect” within 20 days of receiving an application through their online web form.

Once the offer is accepted and invoice paid their policy is to connect the new standard service within 25 days. Be advised it is a breach of Section 50 of the Water Industry Act 2012 to attach any equipment or other thing to water infrastructure without lawful authority.

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Accounting | Taxation | Advisory

We work with you to build your business.

With a long and proven track record in the property and construction industry, our specialist knowledge and key insights into this dynamic sector means we can offer up-todate, expert advice.

To discuss how Nexia Edwards Marshall can partner with you and your business, contact Paul Dimasi on - t 08 8139 1255 e pdimasi@nexiaem.com.au 15

INTERVIEW

HUNGRY FOR THE CROWN:

Is Peter Malinauskas the real deal?

Peter Malinauskas was elected to the Legislative Council in November 2015. Within months, he was elevated to the Weatherill Government Ministry where he had responsibility for portfolios including Health, Police and Correctional Services. Following Labor’s defeat at this year’s election, Malinauskas was installed as Leader of the Opposition.

To the casual observer his elevation to the most senior rank in the party may seem like a meteoric rise, but insiders have regarded Malinauskas as a future Premier for years.

This is a clear signal Labor thinks they have a real shot at winning the next election in 2022. So who is he, and what makes him tick?

Family has been a huge influence on his values. Malinauskas’ paternal grandmother survived World War II and escaped the post-war communist Hungarian state to emigrate to Australia. She married Peter Malinauskas Senior, a Lithuanian refugee, and the couple moved to Adelaide, opening a fish and chip shop.

Malinauskas began working for Woolworths at the age of 15, first as a trolley boy and later a checkout operator and nightfiller. His potential was quickly recognised by Don Farrell, the “Godfather” of the dominant right faction of the South Australian Labor Party. After graduating from Adelaide University with a Bachelor of Commerce, under Farrell’s mentorship Malinauskas became an influential union official. From 2008 to 2015, he was Secretary of the South Australian branch of the Shop, Distributive and Allied Employees’ Association.

“I didn’t grow up in a political household, but we were always interested in current affairs,” says Malinauskas. “Mum and dad always encouraged us to care about what was going on in the world. My grandparents were probably the biggest influence on my politics. They were both conservative voters because they came to Australia as displaced persons fleeing communist oppression. They voted conservative most of their lives, but at the same time they were the great beneficiaries of a nation that had an open and compassionate policy regarding welcoming refugees who wanted to come here and work hard. That’s what makes me Labor - the idea that everybody should have the opportunity to be able to contribute to society, regardless of their background.

I still genuinely believe that despite all the cynicism towards politics, it’s the most compelling force for good when it comes to shaping our society. If I’m serious about pursuing the idea of equality of opportunity, to be able to do that through the levers that the government has is a worthwhile pursuit.”

The first thing that strikes you about Malinauskas is how sensible and grounded he is. Unlike some in the Labor Party, class warfare isn’t his style. There’s no doubt he is sincere in his desire to improve the lives of working people, but he’s definitely not your stereotypical union bovver boy. “I was always committed to being a pragmatic union leader that sought to engage actively with business, and I always believed working people were better off getting outcomes through negotiation rather than disputation,” he says. “I see myself as pro-market, but understanding that markets aren’t perfect and they need to take into account effects on people’s lives. There needs to be plenty of work in the community but when people are in work, they must be in a fair and just environment.”

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Malinauskas is proud of the former Labor Government’s record and keen to defend its legacy. “Infrastructure is often the backbone of the economy and after the GFC it was necessary for the government to step up to the plate and invest and make sure there was a pipeline of work in our community. I think that’s something we did incredibly SA BUILDER SPRING 2018

well. New public schools, a brand new hospital, massive investment in our other major hospitals, dramatic change for our transport infrastructure, Adelaide Oval and the footbridge - these were important projects that were delivered despite fierce opposition.

There was also substantial tax reform that delivered economic outcomes. Payroll tax was cut seven times during the course of Labor’s time in office. We abolished stamp duty in a whole range of commercial areas and that has really been a driver in some of the economic activity we’ve seen over the past 12 months. When I came into the Cabinet in 2016 everybody was predicting double digit unemployment in the wake of Holden’s closure.

When the election happened, we had the third-lowest unemployment rate in the nation.

An economy with momentum, that wasn’t an accident – it took a lot of hard work.”

Despites these positives, Malinauskas readily admits that mistakes were made. To learn from them he has embarked on a “listening tour” right across South Australia. At community forums, pubs and street corner meetings he’s been getting direct feedback from voters that will help Labor formulate policy priorities.

“I think the new government isn’t doing a lot. I think they inherited an economy with momentum in it, but so far they look as though they’re just going along for the ride rather than being active in terms of pursuing our state’s interests. I think their agenda is a bit lacklustre but to be fair they’ve got some things we’re supportive of. I’m determined to be a constructive opposition leader. I think one of the reasons the Liberal Party was in opposition for so long was that they opposed Labor on absolutely everything, even though it was obvious that many of those things were good. Adelaide Oval, the new Royal Adelaide Hospital, the tram extensions, the doubling of the expressway, the footbridge - these things were opposed by the Liberal Party and they looked silly for it. I don’t want to go down that path. If Steven Marshall and the Liberal Party have a good idea, we’re going to support them on it, and I’ve already demonstrated my commitment to that by supporting payroll tax cuts.”

that was constructive with employers. He always had his eye on ensuring the economy was delivering for everybody, not just the few. That appeals to me. He was very much a centrist, wasn’t interested in polarising the community, and that’s the style of leadership that I aspire to. What I care about more than anything is work. It doesn’t matter if you’re a brain surgeon or a cleaner, all work provides dignity. Construction provides a valuable source of work for people. Not everybody is able to go to university and into a white collar profession. There needs to be work for people in the community that have a different set of capabilities and building and construction is an important part of that.

Government investment in infrastructure makes our communities stronger. If Labor is serious and true to its values about prioritising work and jobs for ordinary South Australians, building and construction need to be doing well. If housing and construction is doing well, more or less the state is doing well. Jobs in building and construction are generally well-paid middle class jobs. Labor is all about having people in well paid jobs so they can have a decent standard of living. When the building and construction industry is able to deliver those jobs that is a good thing for people’s lives. I do believe the issue of income inequality is a real one. What I want to see is profits being real, businesses getting a return on their capital, but at the same time wanting to make sure that ordinary working people aren’t being left behind. I do think we have a problem at the moment about a lack of wages growth. When business are doing well, workers need to see the benefits of that as well. There’s a balance to be reached, and we need to get it right.”

Malinauskas still enjoys a kick with the AUFC Blacks. “It’s two and a half hours where you don’t think about anything other than playing footy. And after the game, I’m hanging out with a group of mates who know me as a mate around the footy club rather than from politics.

That’s refreshing and grounding, and something I really enjoy.”

Malinauskas is lukewarm in his support for the South Australian Productivity Commission and Infrastructure SA, two headline policies of the Marshall Government and bodies that Master Builders SA has for many years been lobbying for.

“We don’t think these things are game changers but we don’t think they are going to hurt people, so we are going to work constructively on them. What industry and the South Australian economy needs is a steady stream of major projects. They should occur in both the public and private sectors but government does have a role to play. At the moment the only two infrastructure projects the Marshall Government has is the righthand turn on North Terrace for the new tram and Globelink, which is widely discredited as a crazy investment. There seems to be a lack of a cogent infrastructure policy and we think that is concerning. Builders and construction companies need to have a sense of what the pipeline of work is going to be. Torrens to Torrens is almost finished, Darlington is now well underway. What have we got on the horizon? There’s not much to point to.

“Housing affordability is also something we need to keep an eye on. There needs to be capacity for supply and we need an improved approvals process to ensure that investment occurs. Regarding stamp duty reforms, I understand there is always an appetite for further changes in this area, including in the suburbs, but it has to be done in a fullyfunded way that the state can afford.”

At 38 years old Malinauskas is young for a political leader, but he already looks the part.

He’s smooth, but doesn’t overstep the line to smarmy. In all of Master Builders’ interactions with “Mali”, as his mates in politics and the Adelaide University Football Club call him, he has made a strong impression as an earnest, down to earth and hard-working politician.

Comparisons can be simplistic but for me he resembles a modern day Bob Hawke. Hawke was President of the ACTU but also a reformist who preferred to eschew divisiveness, recognising that it is in the workers’ interest to have a strong economy. I note the comparison and it’s clear the influence of the widely admired Aussie larrikin runs deep.

“I love Hawkie. When he was a trade union leader he conducted himself in the same way as I tried to conduct myself. He was determined to have that consensus-driven style approach, standing up for working people and their values but doing it in a way WWW.MBASA.COM.AU

Author

Will Frogley, Policy and Communications Manager 17

SOCIAL PAGES

Adelaide’s largest and first seven-day-a-week design studio opens for new home buyers Setting new benchmarks as the city’s latest purpose-built design studio, The Design Studio it is located at Hickinbotham’s Head Office in Hackney. Occupying more than 450 square metres, the new state-of-the-art Design Studio is the largest of its kind in South Australia and is the only such studio to open seven days a week. Design studios are offered to new home builders to allow customers more immediate and informed access to materials and styles to choose from for both external and internal finishes.

Master Builders enjoy Winter Reds 2018 Around 30 Master Builders and their special guests enjoyed a relaxing Saturday afternoon at La Prova Wines cellar door in Hahndorf to celebrate the Winter Reds festival.

Hire an apprentice Do you know someone who would like to be a Master Builders SA apprentice? Perhaps you are looking to grow your business?

Hire apprentices for short and long term placements at competitive rates whilst we manage all the paperwork!

FURTHER INFORMATION:

Visit mbasa.com.au/apprentices or call 8211 7466 today.

Head Winemaker, Sam Scott, entertained guests with his passionate anecdotes about Australian Reds and Italian Reds.

Specialising in Italian style Reds, made from local grapes, Sam shared his knowledge whilst guests enjoyed a tasting flight of 6 varietals accompanied by platters of delicious local gourmet produce.

The event was enjoyed by all and looks set to become a staple favourite on the Master Builders annual calendar. It provided the ideal opportunity for attendees to network in a relaxed and casual environment, whilst enjoying some terrific local and international fare.

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SA BUILDER SPRING 2018

A photo of the site earlier this month, as supplied by Finesse Built.

Concreting the pool (which has been donated by DayDream Pools, valued at approx. $20,000)

Finished concrete portion of the pool, which a glimpse of the brickwork and structures.

Chris McDermott and Alisa Fraser from the BBQ Launch in March

FEATURE

‘Building Dreams’ for SA’s most deserving kids Throughout 2018, Finesse Built and Little Heroes Foundation have been working on an exciting new fundraising project - we’re building a house!

Championed by the amazing team at Finesse Built, this home will be a major fundraiser for Little Heroes Foundation, with proceeds from the auction of the home supporting the ongoing work carried out by the Little Heroes Care program.

This program is the service arm of Little Heroes Foundation and works closely with like-minded charities and medical institutions to provide practical services in areas such as medical, educational and financial support.

These services are available to families with a seriously ill child, regardless of how rare their diagnosis is.

About the Project Following the purchase of a block of land, Finesse Built approached Little Heroes Foundation with an exciting idea – to build a luxury home with the support of many labourers, suppliers and tradesman, and auction it off the charity.

The project has a special meaning for Matt Beckwith, Director of Finesse Built, with the young daughter of a close friend being diagnosed with an aggressive cancer known as Neuroblastoma.

“Finesse Built is delighted to join the Little Heroes Foundation,” said Matt. “Having the opportunity to give back to the community and form a synergy with a cherished organisation that shares our values of innovation, collaboration, care and trust, is something we are very proud of. We look forward to continuing this on-going relationship in the future whilst helping support the many children and families facing challenging times.”

Working closely with talented designers, this Finesse Built home will be sharp and stylish, and across the two storey plan, will feature a large master bedroom suite on the lower level, three spacious bedrooms, and a glamorous kitchen.

Finesse Built’s original fencing (before the build began)

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With the interior designed by Alisa and Lysandra, this build will present modern living at its best to the lucky new homeowners.

Matt Beckwith, Monique O’Donohue (Mum), Madison O’Donohue (‘Little Hero’) and Chris from the BBQ launch on the build site earlier this year.

The home will also feature a pool, which has been kindly donated by Daydream Pools, and is valued at a whopping $20,000!

So who is making this all happen? As passionate as Finesse Built are about giving back to their local community, they knew this project would need some significant support in order to make it all worthwhile.

“We’ve been amazed by the support this project has received,” said Chris McDermott, Chairman of Little Heroes Foundation. “Finesse Built aside, Harris Real Estate, SA Life, Master Builders SA, Triple M and FiveAA have all put their hands up and got on board. The Foundation’s long time ambassadors Alisa and Lysandra have also been involved with all the planning and we know they’re looking forward to getting stuck into the interiors of the home as soon as possible!

“Finesse Built’s regular suppliers have also been incredibly generous. It feels like almost every aspect of this build has had a major portion of the work and materials donated. It’s been a remarkable experience so far, and the generosity of South Aussies never ceases to amaze us here at Little Heroes! I’m not sure if I want to put a number on it just yet [how much LHF hopes to raise] but I can tell you that it will have a major impact on what we are currently doing at Little Heroes Foundation with our support program Little Heroes Care. It truly will be a life-changing project.”

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MEMBERSHIP

APPR ENTICE OF THE MONTH

May

Zach Franceschilli Why did you become an Apprentice?

I became an Apprentice with Master Builders because I wanted a trade that would never die (not in my time anyway). I also wanted an apprenticeship that would provide security and surety for the beginning years of my career and future and have a trade to fall back onto and a trade that will always have work.

What do you enjoy the most about being an Apprentice?

I have enjoyed many aspects of being an apprentice, I have enjoyed learning and developing my skills and being taken under the wing of many different tradesman and learning the different ways and different techniques that each individually have. Also, being able to work and earn a decent income and learn at the same time is also a great benefit of being an apprentice.

The end of my Apprenticeship is getting closer and closer, I will stay in the bricklaying trade for many years and whilst doing further study at Tafe SA doing my bachelor’s Degree in teaching and pursuing a career in design and technology (woodwork) teaching at a school or possibly teaching Bricklaying at a trade school is one of my main goals. I will also use my skills that I have learnt and build my own home and do all the bricklaying myself, that would be a life goal completion.

Who would you like to thank?

Firstly I would like to thank Steve Lolosidis and Rob Galsworthy at the team at Probuild Bricklaying for looking after me so well and teaching me everything that I know today, if it wasn’t for them I would not have developed my skills and their patience and understanding has got me where I am today. I couldn’t be more thankful for what they have done.

June

John Foster Why did you become an Apprentice?

I was looking for a career that would provide me with skills and knowledge that I can carry with me through life and use in various ways. I chose carpentry because of its broad range and incredible opportunities to work locally and abroad.

What do you enjoy the most about being an Apprentice?

My favourite part about being an apprentice, especially in carpentry, is that no two days are ever the same. The job has an enormous amount of variety and every day brings its own challenges. The job also allows me to deal with and work alongside a wide range of trades and business people.

What is your goal once you have completed your I plan to work for a year or two as a tradesman, gaining as much experience and knowledge as possible and hopefully saving enough to purchase my first home. After working as a tradesman for a few years I plan to enrol and hopefully gain employment with the Metro Fire Service (MFS). All going to plan I would like to one day start my own carpentry business and on my days off from the MFS work on home renovations and extensions.

Who would you like to thank?

Secondly I would like to thank Neil Dickson of Dickson Quality Construction for taking me on and putting his trust in me. He has shown me that a good work ethic, passion for the trade and a positive attitude can take you a long way and I am grateful for the incredible opportunity he has provided me. I would like to thank my former fellow MBA 20

I would also like to thank the other tradesman for teaching me different tricks of the trade and my field coordinator Ben Morgan for looking after me. Also a big shout out and thank you to my family and partner for all the wonderful and loving support over my apprenticeship, I would not have done it without them either.

What does safety mean to you?

Safety to me means going to work and coming home safely, doing this we need to analyse and identify potential hazards on the work site, this applies to me and my co-workers.

Work in a safely manor making sure every morning take that extra care to make sure the work area is safe and no hazards in the work environment.

Field Coordinator Comments: Zach is a very mature apprentice who works above and beyond the expected level of what is required. He undertakes instruction well and also has the ability to undergo self-directed work. Zach is hardworking, punctual and a great communicator with both his host and MBASA. Zach always follows MBASA policies and procedures and is well respected in the MBA community.

Zach has a fantastic future ahead of him and will be very successful in whatever path he choose to follow in the construing industry.

Zach Franceschilli (left) and Simon Smith from Banner Mitre 10 (right)

Commencement of Apprenticeship 6/1/2015 Current Host Employer ProBuild (Bricklaying host) apprentice, Jake, for both showing great patience and understanding while teaching and guiding me through various stages and new tasks. Finally I would like to thank my family for their continued support and encouragement throughout my apprenticeship.

What does safety mean to you?

We work in such a fast paced and physically demanding industry that consists of a lot of moving parts. It demands the highest level of safety at all times to keep not only ourselves but also those around us out of harm’s way. Without a uniform understanding of the safety expectations the industry simply would not function. Put simply, to me, safety means us all working together to ensure that our mates and ourselves make it home each day unharmed.

Field Coordinator Comments: John has consistently proven himself to be a hard working apprentice with a passion to learn new skills and always pushes himself when on site. John is great communicator with his host employer, fellow colleagues and all MBA staff. John always follows MBA policies and procedures and has mature approach in his workmanship. He is a very approachable apprentice who will be very successful in whatever area he chooses to specialise in.

Commencement of Apprenticeship 15/11/2016

Simon Smith (left) from Banner Mitre 10 and John Foster 3rd Year carpenter (right)

Current Host Employer Dickson Quality Constructions

SA BUILDER SPRING 2018

MEMBERSHIP

HOST TR AINER OF THE MONTH

MAY

ProBuild Bricklaying ProBuild Bricklaying business currently has six members, some of whom have been running a bricklaying team for over 25 years.

Our company mainly does new residential projects but also does light commercial retaining walls and outdoor kitchens including wood ovens.

bringing them on board. This has helped us have a good crop of apprentices who have all the attributes we look for when employing tradesmen, and it gives us a lot of pride when we can help turn these young people into trade professionals.

We would also like to make a special mention of the builders we work for, in particular Prime Builders, Chase ProBuild has been a member of Master Builders for Crown, Brightspace Homes and Serenity Homes, just to about three years and we appreciate the Master Builders mention a few, and especially IGU Prime Builders who Group training scheme as it streamlines the work has supported us for over 20 years . Without their support involved with having an apprentice. MBA is very flexible we wouldn’t be where we are today and wouldn’t be in a in helping to make the experience as smooth as possible, position to take on three apprentices. It’s been a pleasure and it’s also great that MBA screens the apprentices before to build a good working relationship with all these builders.

From left to right: Steve Lolasisdis, owner, Zach Franceschilli, apprentice, Tim Davies, apprentice, Rob Galsworthy, owner

JUNE

Buch Constructions Buch Constructions currently has eight carpenters and three partners in the office, and five MBA apprentices placed in the field.

Buch has been in the industry for 30+ years and mainly does subcontract carpentry for commercial projects such as apartments, hospitals, government offices, etc., and a small number of residential general construction and carpentry projects.

The types of carpentry services Buch provides are: • Fit out including timber door/frame and sundry hardware supply and install, • Timber wall, floor and roof framing, and • Custom timber works (e.g. flooring, stair cladding, podiums, outdoor timber pergolas, furniture and screening).

Buch has hired MBA apprentices since 1995 and has been an MBA member since 1992, first as Central Carpentry Contractors, and since 2002, as Buch Constructions, a total of 26 years.

WWW.MBASA.COM.AU SA BUILDER SPRING 2018

Buch believes the biggest benefit in utilising MBA GTO apprentices is the flexibility to adjust labour resources to suit the amount, type and frequency of project labour needs which fluctuate greatly. In general, the quality of the apprentices Buch has hired over the years have been very good. Another significant benefit to Buch is that MBA GTO handles all the procurement, signup paperwork, ongoing training and human resource issues, rather than Buch managing these processes if the company hired the apprentices directly. This allows Buch to concentrate on the core issues of running a business in a very competitive industry.

The majority of Buch’s work in recent years has been with Hansen Yuncken (Flinders Medical Centre, Port Adelaide Offices at 107 Nile St, nRAH, Health Innovations Building, Lyell McEwin Health Service, Women’s and Children’s Hospital, RAAF Edinburgh), Hindmarsh Constructions, UniSA City West Campus, B Apartments Bowden, BMD Constructions and Built Environs) carrying out carpentry works and door package subcontracts.builders.

From left to right: Jim Burke, Leading hand and Cris Buch, Director

21

INTERVIEW

Cory Bernardi:

Hardcore Conservative Cory Bernardi is without doubt one of the most polarising figures in Australian politics. The 48-year-old Senator is well-known for his controversial remarks on climate change, gay marriage and Islam. Jacqui Lambie once described him as an “a**hole” who was “born with a silver spoon up his rear end”. Nick Xenophon was far more generous in his character assessment, telling The Advertiser “As much as I disagree with him on a lot of things, he’s a class act.”

Love him or loathe him, you can’t deny that Bernardi stands for something. He’s fearless in his defence of private enterprise, Australian culture and traditional family values. When Bernardi quit the Liberal Party last year to establish the Australian Conservatives Party he copped a fair spray from many of his colleagues, but he wasn’t going to die wondering. In his mind the Liberal Party had drifted unacceptably far to the left under Malcolm Turnbull and he would never be content being part of an organisation that no longer reflected his values.

“Both major parties are consumed by short-termism; a complete lack of application of consistent principles in their policy approach,” says Bernardi. “There’s no framework or philosophical approach. After the election, like it or not Scott Morrison or Bill Shorten will be Prime Minister, and that makes the role of the Senate more important than ever. In the Senate we’ll watch your back and give the party of government the will to do the right thing: arresting our debt and deficit, reducing taxes, shrinking the size of government and bureaucracy, strengthening families, small businesses and removing red tape and regulation and making sure our immigration program is working to our economic, social and cultural interests. It’s a pretty mainstream agenda that seems to have been sacrificed at the altar of political correctness by both the major parties as they’ve lost their compass.”

A strong work ethic appears to be in the family blood. Bernardi’s father Leon came to Australia in 1958 and worked his way up from the David Jones food counter to running his own restaurants and hotels. “In many ways, my father was a pioneer in the hospitality industry,” says Bernardi. “He taught me the value of private enterprise, hard work, integrity and honesty. I was always aware of politics, the importance of institutions and enduring values, and I’ve defended them right throughout my life.”

22

Frustrated by the focus on theory rather than practical skills, Bernardi dropped out of university and had a stint in the Australian Rowing team before a back injury forced his return to Adelaide, where he became a publican. Then he was hospitalised for a year with tuberculosis. “That made me re-think my priorities. I got more involved in politics.

At 28, I became the President of the Liberal Party, and six years later I was elected to the Senate. The rest is history.”

The way Bernardi is frequently portrayed in the media gives many people the impression that he’s somewhere to the right of Genghis Khan. In person, Bernardi is cordial and relaxed. He’s generous with his time and seems almost bemused by the level of hatred reserved for him. Since Tony Abbott was replaced as Prime Minister, Bernardi is probably Public Enemy Number One to the social justice warriors of the Australian hard left. At least south of Queensland, where a certain red head has the same ability to both inspire and infuriate in equal measure. Unsurprisingly, Bernardi is a fan. “One of the things I admire most in people is resilience. I don’t always agree with Pauline Hanson, but she is one resilient cookie. She’s attacked personally all the time, but she’s so tenacious - her toughness cannot be understated.”

Bernardi is genuinely passionate about addressing the challenges facing Australia. “Number one has to be debt and deficit. We are mortgaging the future of our children to provide benefits for today. I think that is extraordinarily short-sighted and the greatest moral challenge of our time.

“People feel increasingly alienated from institutions that previously were respected. As politicians we need to earn back respect. Our biggest challenge is get the word out there that the Australian Conservatives exist and we are a credible and principled party that has policies that reflect mainstream values.”

It’s the unshakable belief in himself and his philosophy that puts many people offside. His critics say he has a black and white view of the world and is full of his own self-importance. Make no mistake, his many enemies hate him. How many politicians have had their office trashed by protesters? Bernardi is the type of guy who could save a bunch of children from a burning orphanage and still his detractors would find a way to make a derogatory comment about him based on something he said many years ago. But there’s more SA BUILDER SPRING 2018

Bernardi has managed to blend politics with entrepreneurship, with his website selling everything from coffee mugs to “Hardcore Conservative” t-shirts.

to him than meets the eye. He’s frequently called a racist, yet he has Aboriginal heritage. He’s apparently anti-immigration, but his own family is the quintessential migrant success story. He’s labelled a misogynist, but before his sons started school, he was a stay at home dad for two days per week.

Bernardi is a true maverick, but he’s also consistent. He’s definitely not the type of politician that tells one group something and then goes and tells another the exact opposite. And whether its reforms for small business, opposing red tape and duplication, or supporting the reestablishment of the Australian Building and Construction Commission, he consistently backs our industry. In fact, it is difficult to think of an example where he hasn’t.

“My engagement with builders has been fabulous. I reckon they are risk-takers, developers, they generate employment, and they literally build the state. I’m in awe of what you guys do, because I think there’s a real artistry to it. As someone who has built houses and other small scale projects, I find the bureaucratic impediments to building and some of the mandated things really just alien. I don’t understand why as a consumer I have to get an energy rating for a building. It’s my business. If I want to build something with lots of single pane glass in it that’s going to use a lot of energy, well I’ve got to pay the bills for it.

“The approvals process is a nightmare. Councils just seem to make it up as they go.

My own experience was chaotic. You could streamline that and maybe even just have private certifiers for development applications of that nature rather than relying on council bureaucracy.

“People want affordable homes. Not everyone can afford the Grand Manor but they do want a backyard so you’ve got to unleash this landlocking. For many years now the State Government has been locking up huge tracts of land. If they release that land or sell it there’s a whole range of red tape and green tape you’ve got to get through. Why not unleash all that land and allow developers to get in there as cost effectively as possible to provide homes that people are happy to buy?

“I also think the Construction Industry Training Levy is a disgrace. How is it benefiting anyone? The Construction Industry Training Board has millions in the bank and people are still complaining they can’t find apprentices or there’s not enough opportunities for them.”

Fuelled by his own negative experiences at university, Bernardi would like to see trades have a higher level of prestige. “Kids are being encouraged to go to university even if they’re not well suited to it. Universities used to be places of higher learning, now they’re just degree mills in many respects. People go in and study basket weaving and they come out unemployed with a HECS debt. We have to change people’s mindsets. Our tradies are the small business people of the future and if you think you can have a prosperous future without electricians, carpenters, bricklayers and so on you are kidding yourself.

We need to start treating our tradespeople as the entrepreneurs of the future and also treat them as students. A lot of people are put off doing an apprenticeship because they don’t earn much money in the first year and they don’t see the future benefits where they can make a good quid. Every university student is subsidised if they want to by payment of fees by the government and they repay that through future employment.

We should be looking at the same for apprentices that gives them a living wage in their first year. The government might supplement what the employer pays and there could WWW.MBASA.COM.AU

be a repayment system just like HECS so people are not being forced to survive on $20,000 a year. People are not attracted to working hard and being impoverished, and I can understand that.”

Bernardi’s focus right now is the upcoming Federal Election. The performance of the Australian Conservatives at this year’s State Election disappointed supporters. The party failed to win a seat, and their lone sitting member Dennis Hood defected to the Liberal Party. Bernardi says he was humbled by the experience and is confident of a better showing this time. His Chief of Staff Rikki Lambert is the lead candidate in the Senate.

“Rikki is a very astute political operator,” says Bernardi. “He’s a family man with four kids, he’s legally trained and he understands politics and the subtleties of getting outcomes in the political sphere. You get devoured in that bear pit of parliament if you don’t have a working knowledge and understanding of how to get things done, and Rikki brings that to the table. He would be a huge asset for South Australia.

“People are generally filled with good will, but there’s a huge capacity constraint with some of them. Very few people in the parliament have run small businesses. The business of politics is what drives them. They haven’t been on the hook for making payroll, they haven’t been on the receiving end of bureaucratic nightmares. I’m not interested in the political convenience of something, I’m interested in the principle behind it. If it’s in the interests of the country, I’ll get behind it.”

Locally, Bernardi thinks the Marshall Government is off to a good start. “I’m quietly impressed with how methodically the government is going about its business. It seems to be very keen to honour commitments. Reducing payroll tax is a positive step, and they are very pro-business. The level of optimism from the business community because of the change of the government is felt almost everywhere I go.”

I once heard a journo quip that Bernardi would rather have a fight than a hot breakfast.

He readily admits he enjoys a good stoush as much as ever, but after so many years in politics his approach has slightly changed.

“I’m only motivated by policies now, I’m over the personalities and the egos of individuals. However you measure the political contribution of the last decade, we’ve gone backwards. I just want to see Australia get back on track. Let’s stop the experimental politics, let’s go back to what we know works. Look at the electricity industry. We used to have the cheapest and most reliable energy in the world, and it was Australia’s great competitive advantage. What have we got now? A mishmash of policies that are working against every industry in this country, families and individuals. We’re penalising the overwhelming majority and for what purpose?”

Author

Will Frogley, Policy and Communications Manager 23

UPDATES

UPCOMING TRAINING COURSE DATES September 2018 12th

White Card

8.30am – 2.30pm

17th

Asbestos Awareness

8.30am – 12.30pm

17th – 5th Oct

Timber Framing Code

5.30pm – 8.30pm (8 consecutive Mondays)

19th

Contracts Management Training – Contract Formation

5.30pm – 7.30pm

27th

Small Business Program

5.30pm – 7.00pm

October 2018 3rd – 4th

Building Codes and Standards – Residential

5.30pm – 8.30pm (2 consecutive evenings)

4th

Manager and Supervisor Training

9.00am – 4.00pm

6th – 14th

Contractors Licensing Course

8.30am– 3.30pm Sat & Sun (2 consecutive weekends)

9th

Safety Supervisor

1.00pm – 5.00pm

11th

Safe Work Method Statements

8.30am – 12.00pm

16th – 17th

Roof Trusses

5.30pm – 8.30pm (2 consecutive evenings)

17th

Contracts Management Training – Understanding the meaning of contracts

5.30pm – 7.30pm

17th

White Card

8.30am – 2.30pm

23rd – 25th

Construction of Buildings – Residential

5.30pm – 8.30pm (3 consecutive evenings)

24th

Seriously Social Beers and Business

4.00pm – 6.00pm

31st

Non-conforming Products

5.30pm – 8.30pm

November 2018 2nd

Safety Management Systems

8.30am – 2.30pm

3rd – 11th

Contractors Licensing Course

8.30am – 3.30pm Sat & Sun (2 consecutive weekends)

14th

White Card

8.30am – 2.30pm

20th

Building Inspection and Report Writing

9.30am – 4.30pm

21st

Contracts Management Training – Tenders and Tendering

5.30pm – 7.30pm

27th

Wet Area Waterproofing

5.30pm – 8.30pm

December 2018 5th

Introduction to Building

5.30pm – 8.30pm

12th

White Card

8.30am – 2.30pm

19th

Contracts Management Training – When it all goes pear shaped

5.30pm – 7.30pm

Master Builders SA

47 South Terrace, Adelaide SA 5000 t 08 8211 7466 e enquiries@mbasa.com.au w mbasa.com.au 24

SA BUILDER SPRING 2018

MEMBER PROFILE: ALAN SHEPPARD CONSTRUCTIONS

A Master Builder in every sense

Established in 1974, Alan Sheppard Constructions has created homes of charm and character for many hundreds of South Australian families.

“Brilliance in custom design defines who you are and reflects your personality,” says Alan Sheppard. “From your mind to our plans, together we’ll mould your masterpiece.

“We listen, we advise and we construct. How do we know if we’ve got it right? 40 years of experience building awardwinning luxury homes all over Adelaide with personalised care and attention from myself.

“A dream doesn’t start with a blueprint; it starts with builder and client rapport, open and inclusive conversations where ideas grow, and a trust that ensues from courteous design teams to respectful trades on site all adding to an exciting journey. We bring all our years of experience into play so that your home builds on our enduring reputation for quality architecture and superb finishes.”

As one of South Australia’s most established and awarded custom home builders Alan Sheppard Constructions has built a reputation of trust among clients and the local construction sector.

Words including “dependable, excellence, pride, perfection, personal” and “happy” run through client testimonials and Alan says they are testament to the entire team’s hard work and dedication.

That hard work and dedication has earned the team 28 Industry Awards in the last eight years and numerous major titles including the highly coveted Master Builder of The WWW.MBASA.COM.AU

Year SA for 2011 and 2015 and the 2017 Master Builder Award for Contract Home of the Year – Over $1.5 million.

“Their building prowess is second to none and they truly set the benchmark in relation to innovation and building excellence,’’ judges remarked.

“Only the highest quality materials are used to create outstanding levels of internal and external finishes and their builder client relationships are exemplary. A Master Builder in every sense of the word.’’

“Awards aren’t everything, but they are valuable to the team as recognition for their efforts and commitment to our clients,” says Alan. “With these MBA awards, the judges also speak with the clients and the fact that they are happy to give their time to be involved and to talk about the process of working with us speaks volumes I think.

“Building your own home is a long held dream for many people and when you take that step you expect a home as an extension of your personality, lifestyle and aspirations.

We value one-on-one relationships which bring dreams to life. Master Builders’ accreditation doesn’t simply happen; we work hard for it. Our clients work hard too, so we are very pleased to help them spoil themselves with a new luxury home.”

Senator Cory Bernardi, who features in this edition of SA Builder, was hugely impressed with Alan when he engaged him to build his dream home in Adelaide’s north east.

“Everything about dealing with Alan Sheppard gives you confidence he is on your side. As a first time builder,

nothing was ever too much trouble and he has a knack of turning a business relationship into a friendship.

He is a legend of the building industry and it’s easy to understand why.”

When he’s not working, Alan’s favourite pastime is to race horses. He is also a big football fan, and was a board member of the Adelaide Crows when they won back-toback AFL Grand Finals in 1997 and 1998. To help alleviate the pain of long-suffering Crows fans, maybe it’s time he made a comeback?

25

FEATURE

Health Benefits of Good Work Hello all. By way of introduction, my name is Dr Kar Loong Ng and I am an Occupational Physician - a doctor who specialises in Work Medicine.

I am passionate about health, and work with a team of medical specialists, occupational GPs, physios and psychologists to help injured workers and their employers through their journey towards recovery and return to work.

Our organisation is called Next Generation Occupational Medicine, and we are dedicated to the future of health and work.

For our first health bulletin, it is my honour to invite Dr Beata Byok, Occupational Physician and President of the Australasian Faculty of Occupational and Environmental Physician, to write about the faculty’s consensus statement, the ‘Health Benefits of Good Work’.

The Royal Australasian College of Physicians (RACP) and the Australasian Faculty of Occupational and Environmental Medicine (AFOEM), has an initiative called the Health Benefits of Good Work (HBGW).

The mission of the HBGW is to improve the health of individuals, businesses, organisations and communities through good work. Good work promotes a culture of co-operation and psychological safety, and not just the control of workplace hazards and implementation of safe systems of work.

Over 200 organisations and businesses have become Signatories to the Consensus Statement on the Health Benefits of Good Work and proudly display the Charter of Principles in their organisations. More information and resources on the HBGW are freely available on the RACP website* including a list of all current Signatories.

There is no cost to becoming a Signatory apart from a commitment to implement the principles of this initiative in your organisation.

What is good work?

‘Good Work’ is work that is engaging, fair, respectful and balances job demands, autonomy and job security.

It is mindful of culture and traditional beliefs and is 26

characterised by safe and healthy work practices. It achieves a balance between the interests of individuals, employers and society.

Studies have shown that ‘good work’ is a key determinant of the health and wellbeing not only of workers, but also has a positive impact on their families and the broader community. It helps to foster a healthy workplace culture and is aligned with effective and equitable injury management programs. Positive relationships within the workplace not only contribute to individual health, wellbeing and engagement but also productivity.

Long term absence from work, work disability and unemployment may have a negative impact on health and wellbeing that has more far reaching implications for families and society, not just the affected worker and may also impact the employer.

Avoiding such problems by implementing “good work” principles can positively affect the “bottom line” for employers. Indeed, “good work” can make everyone a “winner”.

So how can you achieve good work?

Firstly you need to be aware of the factors that contribute to good work. This knowledge must then be translated into meaningful action, involving an effective change management process, including development of clear and realistic performance indicators. Work should be matched to individuals using transparent productivity metrics. This requires a commitment in both thought and practice, with collaboration between FURTHER INFORMATION: Visit: www.racp.edu.au/advocacy/divisionmany stakeholders including workers, governments, employers, unions, insurers, legal practitioners, advocacy faculty-and-chapter-priorities/faculty-of-occupationalenvironmental-medicine/health-benefits-of-good-work groups and healthcare professionals.

Why is it important for your organisation to have good work?

Work related stress claims have increased dramatically over the last decade and are contributing greatly to the cost of workers compensation and workers compensation premiums.

Many cases of work related stress can be attributed to lack of support and interpersonal conflict. The importance of mutual respect and appreciation of all workers is now considered fundamental for good work place relationships.

Author

Dr Beata M Byok MBBS, GDOH, FAFOEM(RACP) Consultant Occupational Physician President, Australasian Faculty of Occupational and Environmental Medicine (RACP)

SA BUILDER SPRING 2018

FEATURE

SA’s Building and Construction Industry Forecasts The broader picture coming out of the official statistics is that the SA economy has been moving forward at the fastest rate in more than a decade. The economic indicators are perhaps running ahead of sentiments on the ground and too much activity is still being underpinned by the government and public service jobs growth. On the other hand, the recent closures of car manufacturers may not be fully felt yet.

There are also close to $12 billion in major construction projects in planning, many of which are resources related that have less chance of getting off the drawing board by the day.

But the essential story, despite the loss of car manufacturing and uncertainty on the front of Defence manufacturing spending, is that there are plenty of factors in South Australia’s favour.

Major public transport infrastructure projects are led by the $1 billion Northern Connector, and the $900 million South Road Upgrade.

A number of new gas, renewables and battery storage projects have been added to the pipeline in recent months and should support work for a few years. Maintenance work going forward will be another big source of activity and jobs.

The Lincoln Gap windfarm is currently underway, but the majority of work in the renewables sector is still in the pipeline, including the $1.5 billion Ceres wind farm on the Yorke Peninsula and $1 billion Riverland solar farm near Roxby Downs.

Commercial building is expected to expand by more than 50 per cent in the next two years.

However it is worth noting that the sector has been very subdued over the past five years.

Higher levels of business investment are a positive sign, despite a small moderation in the State Budget funding for schools, hospitals and aged care facilities will be another key last half of 2017, which was probably down to the election cycle. source of activity, with the combined value of work in 2018 and 2019 across these sectors estimated at over $1.7 billion.

Small business confidence is improving and leaves room for better and more widely shared employment growth over the next few years.

On an equally positive note, a number of the underlying economic indicators for South Australia are supporting better activity in the construction sector. The value of building approvals continues to trend up higher, outpacing most other parts of the country. Retail sales have also been growing faster than the national average for more than 18 months, and wages growth is strong by comparisons.

In 2017 the total value of work done came close to $10 billion and is expected to grow even faster to around $12 billion by the end of 2018.

Non-residential building is expected to record its best performance in decades with the major project activity in offices, retail and the industrial sectors all expected to spike.

Agriculture investments have also picked up considerably in the last 12 months.

Year Ended June

2017-18

2018-19

2019-20

2020-21

2021-22

Residential Building

11,998

10,929

9,515

8,620

7,921

%ch

10.3%

-8.9%

-12.9%

-9.4%

-8.1%

Number Commenced

Value of Work Done ($M, chain volume measures, constant 2015/16 prices)

The pace of residential building is expected pick up in 2018 but moderate thereafter.

There are still a number of large apartment projects underway which are a big boost to activity. However, the majority of work underway is expected to wrap up by the end of the year and the value of projects in planning is much lower. Unless more projects enter the pipeline soon, the value of residential construction is likely to fall looking into 2019 and beyond.

Much like the rest of the country, engineering and civil construction is being propped up by a significant investment by the state and federal governments into new transport infrastructure projects.

WWW.MBASA.COM.AU

Total Building & Construction

11,998

13,019

11,929

11,053

10,359

%ch

21.2%

8.5%

-8.4%

-7.3%

-6.3%

Residential Building

3,342

3,217

2,931

2,697

2,533

%ch

11.2%

-3.8%

-8.9%

-8.0%

-6.1%

Non-Residential Building

2,574

3,231

2,752

2,216

2,028

%ch

32.1%

25.5%

-14.8%

-19.5%

-8.5%

Engineering Construction

6,081

6,571

6,246

6,140

5,798

%ch

23.1%

8.1%

-5.0%

-1.7%

-5.6%

27

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

Year Ended June

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

Engineering Construction

5,395

5,193

5,348

6,072

5,621

4,441

4,719

4,941

6,081

6,571

6,246

6,140

5,798

%ch

29.9%

-3.7%

3.0%

13.5%

-7.4%

-21.0%

6.3%

4.7%

23.1%

8.1%

-5.0%

-1.7%

-5.6%

Transport

1,651

1,649

1,816

2,149

1,519

1,080

995

1,375

1,943

1,990

1,652

1,609

1,653

%ch

6.4%

-0.1%

10.1%

18.3%

-29.6%

-28.6%

-7.9%

38.2%

41.3%

2.4%

-17.0%

-2.6%

2.7%

Utilities

2,819

2,312

2,261

2,243

2,054

1,682

2,223

2,281

2,882

3,026

2,756

2,632

2,210

%ch

61.8%

-18.0%

-2.2%

-0.8%

-8.4%

-18.1%

32.1%

2.6%

26.3%

5.0%

-8.9%

-4.5%

-16.0%

Resources %ch Other %ch

553

833

958

985

1,347

1,251

1,128

866

859

1,203

1,508

1,571

1,599

-17.7%

50.6%

15.0%

2.9%

36.7%

-7.1%

-9.8%

-23.2%

-0.8%

40.1%

25.4%

4.1%

1.8%

371

400

314

695

708

428

373

420

397

353

330

328

337

100.0%

7.7%

-21.4%

121.4%

1.8%

-39.6%

-12.7%

12.3%

-5.3%

-11.2%

-6.4%

-0.7%

2.6%

2021-22

Source: Master Builders Australia, Macromonitor, ABS data.

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

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

Residential Building

2009-10 2,982

3,072

2,735

2,317

2,684

3,018

2,921

3,006

3,342

3,217

2,931

2,697

2,533

%ch

-0.8%

3.0%

-11.0%

-15.3%

15.8%

12.4%

-3.2%

2.9%

11.2%

-3.8%

-8.9%

-8.0%

-6.1%

Houses

1,995

2,055

1,730

1,557

1,752

1,985

1,868

1,940

2,062

2,044

1,861

1,710

1,598

%ch

0.4%

3.0%

-15.8%

-10.0%

12.5%

13.3%

-5.9%

3.9%

6.3%

-0.9%

-9.0%

-8.1%

-6.6%

549

562

545

356

495

587

617

632

849

741

639

555

502

-1.3%

2.4%

-3.1%

-34.6%

38.8%

18.6%

5.2%

2.3%

34.5%

-12.8%

-13.8%

-13.1%

-9.5%

441

457

462

405

438

447

437

434

431

431

432

432

433

-5.3%

3.6%

1.2%

-12.4%

8.2%

1.9%

-2.3%

-0.6%

-0.7%

0.1%

0.1%

0.1%

0.1%

Other Dwellings %ch Alterations & Additions %ch

Source: Master Builders Australia, Macromonitor, ABS data.

28

SA BUILDER SPRING 2018

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

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

Non-Residential Building

2,550

2,561

2,371

2,303

2,377

2,298

1,997

1,949

2,574

3,231

2,752

2,216

2,028

%ch

36.5%

0.4%

-7.4%

-2.9%

3.2%

-3.3%

-13.1%

-2.4%

32.1%

25.5%

-14.8%

-19.5%

-8.5%

Retail & wholesale trade

216

221

327

295

305

263

309

247

327

470

397

387

336

%ch

-35.2%

2.2%

48.2%

-9.9%

3.5%

-13.9%

17.5%

-20.2%

32.5%

43.7%

-15.6%

-2.5%

-13.2%

Transport buildings

47

31

100

84

32

7

14

38

50

70

63

44

36

%ch

43.7%

-33.8%

225.9%

-16.2%

-61.7%

-79.3%

116.1%

164.7%

31.0%

39.8%

-9.9%

-29.9%

-18.8%

Offices

183

240

381

251

221

207

141

103

271

556

549

334

197

%ch

-34.9%

31.0%

58.6%

-34.1%

-11.9%

-6.2%

-32.1%

-26.6%

161.8%

105.6%

-1.4%

-39.2%

-40.9%

Other commercial

23

49

29

6

24

46

21

31

55

47

29

30

44

%ch

-6.2%

115.8%

-41.2%

-79.6%

302.7%

95.2%

-53.5%

43.1%

77.8%

-13.8%

-38.5%

2.5%

49.6%

Factories

159

143

62

43

55

28

43

57

94

249

149

66

58

%ch

-0.08%

-9.9%

-56.7%

-29.8%

26.2%

-49.5%

57.1%

32.2%

63.7%

164.9%

-40.4%

-55.5%

-12.9%

Warehouses

122

131

89

95

136

130

91

55

132

137

119

115

104

%ch

20%

7.7%

-32.4%

7.4%

42.9%

-4.9%

-29.5%

-40.0%

141.0%

3.3%

-12.5%

-3.7%

-9.4%

Agriculture and aquaculture

17

49

50

28

23

111

111

107

111

59

60

46

34

%ch

-32.3%

183.9%

0.8%

-43.4%

-19.5%

390.1%

-0.4%

-3.5%

4.0%

-46.8%

2.3%

-24.4%

-25.3%

Other industrial

19

14

18

50

14

22

21

27

36

29

30

26

25

%ch

-69.5%

-24.1%

26.8%

170.4%

-71.3%

52.8%

-5.9%

32.6%

33.3%

-20.9%

4.8%

-13.9%

-4.5%

Education

884

861

386

436

493

287

420

419

413

457

466

468

440

%ch

215.8%

-2.6%

-55.2%

13.0%

13.2%

-41.7%

46.2%

-0.2%

-1.4%

10.7%

1.8%

0.6%

-6.1%

Religion

8

15

18

6

6

17

17

10

32

12

12

12

10

%ch

9.9%

90.9%

25.1%

-66.6%

-6.8%

203.3%

-2.9%

-40.7%

224.3%

-63.2%

-0.4%

-1.2%

-14.7%

Aged care facilities

94

74

113

53

85

126

141

159

202

129

140

146

149

%ch

-27.1%

-21.5%

53.6%

-53.4%

61.1%

47.7%

12.1%

12.8%

27.3%

-36.3%

8.5%

4.4%

2.1%

Health facilities (non-aged care)

167

218

378

467

551

770

419

379

253

297

300

249

313

%ch

62.5%

30.7%

73.4%

23.8%

17.8%

39.9%

-45.6%

-9.6%

-33.2%

17.5%

0.9%

-17.0%

25.6%

Enterainment & recreation

236

203

159

286

273

130

137

125

162

205

175

89

97

%ch

90.8%

-13.9%

-21.8%

79.7%

-4.6%

-52.5%

5.5%

-8.6%

29.8%

26.3%

-14.5%

-49.3%

8.9%

Accomidation

58

47

15

48

70

37

35

58

140

299

132

70

52

%ch

-29.8%

-19.7%

-67.8%

215.9%

47.8%

-48.0%

-3.3%

64.2%

140.8%

113.9%

-55.8%

-47.3%

-24.5%

Other non-residential

317

264

246

155

89

117

77

133

296

215

131

136

134

%ch

162.4%

-16.7%

-7.1%

-36.9%

-42.4%

31.5%

-34.8%

74.3%

121.7%

-27.2%

-39.0%

3.2%

-1.5%

Source: Master Builders Australia, Macromonitor, ABS data.

WWW.MBASA.COM.AU

29

30

A Centenary of Construction

The ability to evolve and adapt, to anticipate changing conditions and demands, to nurture innovation and to plan for the long term are key to Hansen Yuncken’s enduring success. But where there is change, growth and development, there is also a continuity of culture and values: one of honest, fair dealings; a focus on the client’s needs and expectations; recognition of the achievements of its people; and, above all, pride in its work. These are the constants that have enabled Hansen Yuncken to progress and thrive during its 100 years. They are the qualities that will support the company’s development and continuing success into the future.

SA BUILDER SPRING 2018

Established by a simple handshake on a Melbourne footpath between long term friends Lauritz Hansen and Otto Yuncken, 100 years later, Hansen Yuncken remains one of Australia’s premier construction companies.

Since this partnership was formalised on 9 May 1918, the construction industry has ridden a tidal wave of change.

Hansen Yuncken has continued to innovate, adapt and respond to changing conditions and needs, even as it was at the mercy of fickle economic conditions at home and abroad. There have been highs and lows, booms and near-busts, times of enormous challenge and exhilarating achievement. In all of this the only constant has been change, but the cultural life of the company has been remarkably steady.

The Founders

Over a remarkable century Hansen Yuncken has completed thousands of projects valued at more than $150 billion in today’s dollars. Across five states, 600 employees contribute to an annual turnover exceeding $1 billion each year.

A Buoyant Economy for South Australia

Following a construction boom in Victoria, Hansen Yuncken branched out into the South Australian market in 1939.

Its first project was the Bank of NSW building, now home to Jamie’s Kitchen and the famous 2KW and some years later created an entrance to King William St with the AMP Building at 1 King William St. AMP was an important client for Hansen Yuncken in the 1960s, with contracts to build four buildings in three cities: two office towers in Melbourne, one in Adelaide and one in Hobart. The Adelaide tower was the city’s tallest building at that time, and the challenging project won a gold medallion from the International Federation of Asian and Western Pacific Contractors’ Associations for the most Outstanding Construction Project completed in Australia during the 1960s, beating out the second stage of the Sydney Opera House and the Melbourne Arts Centre.

In 1961, Hansen Yuncken embarked on construction of Birks Store. This major project replaced the old Charles Birks Store in Rundle Mall which had been acquired by David Jones, with a new $2.9 million, 10 story building designed by Adelaide architects Hassell and McConnell. At the time, it was the largest single building project in the city’s history, with more than 500 men working on rotating shifts to speed completion. In contrast to earlier Adelaide buildings, the new store was built on a raft footing to cope with the site’s clay foundations. It used 2500 tonnes of structural steel and 11,500 cubic metres of concrete marble. With full air-conditioning and fire protection, eight lifts and 12 escalators, it was the most modern store in Australia upon completion. In 1998, Hansen Yuncken built a new store for David Jones in the Central Plaza Shopping Centre on North Terrace. Fast forward 10 years and during that time, Hansen Yuncken contributed to the growth of the Rundle Mall precinct having completed construction of the Rundle Place shopping precinct and Bendigo Bank Tower and more recently, undertaking refurbishment works on the Rundle Mall Plaza redevelopment.

Otto Johannes Wilhelm Juncken

Lauritz Hansen, co founder of Hansen Yuncken

Otto Johannes Wilhelm Juncken was born in Lyndoch, South Australia on June 22, 1865. He trained as a carpenter under his German born father and the pair undertook simple building works throughout the Barossa Valley before Otto left home at the age of 18 to move to Port Adelaide. In 1885 he moved to Melbourne, found lodgings in Richmond and began working with Clements Langford, one of the city’s major builders of that period. In 1924 Otto changed the spelling of his surname from Juncken to Yuncken.

He died in 1945 at the age of 80.

Embarking on a new construction delivery method, Hansen Yuncken began work on Adelaide’s Education Building for the state government in 1974. It was the company’s first design-and-construct consortium project and the first major project to use this delivery method in South Australia. Taking the lead role in the consortium, Hansen Yuncken was responsible for coordinating the whole team. The role of the building contractor was expanding, and Hansen Yuncken was at the forefront.

32

SA BUILDER SPRING 2018

In 2001, Hansen Yuncken won the role of managing contractor for the first stage of Adelaide’s Lyell McEwin Hospital. This was an emerging procurement model, and a new kind of collaborative team structure was developed for the project, which fostered a strong team culture driven by project objectives rather than individual interests. It was a new approach and Lyell McEwin garnered significant acclaim as a model collaborative project. The company went on to win the second and third stages of the hospital redevelopment. This work helped give the company important experience in early contractor involvement (ECI) and Hansen Yuncken has gone on to deliver a number of remarkable projects using this evolving procurement model.

ADELAIDE AIRPORT

‘Adelaide Airport was a watershed for the company. It demonstrated to the industry nationally that Hansen Yuncken was capable of undertaking and successfully completing major projects of significance.’

— Tony Swan, Operations Manager, 2004

WWW.MBASA.COM.AU

The $243 million Adelaide Airport terminal, built in 2003–5, was another significant advance for Hansen Yuncken in its size and complexity. The company teamed with a Macquarie Bank–led consortium to initially tender for the airport leasehold, which would entail building a new terminal. Hansen Yuncken took a 5 per cent shareholding in the airport to secure the design-and construct role. After a series of inevitable delays due to the September 11 terrorist attacks and the collapse of Ansett Airlines, the complex building required an accelerated construction program and the coordination of many stakeholders, consultants, subcontractors and employees. Its ultimate success had far-reaching consequences for the company, boosting its reputation nation-wide and creating opportunities in other states.

33

THE SEISMIC SHIFT IN WALL & CEILING SYSTEMS CONTINUES.

Health Innovation Building, UniSA ®

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Not only are our Seismic Systems backed by our team of expert Engineers, we also give you access to Seismic Design Wizards on our website, 24 hours a day. Simply by inputting your project-specific information, you can calculate seismic ceiling designs, check that the vertical capacity is ok, and determine whether bracing is necessary or not.

On completion, you can print out your results, email them to yourself, or send to us for further assistance.

For more information, visit www.rondo.com.au/seismic today.

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• Texture coating for external use • Render and set for internal use • Heritage restoration work • Repair work • Concrete corrosion repairs To Adelaide metropolitan and country areas Congratulations Hansen Yuncken on 100 years in business

PO Box 2014 Glynde Plaza SA 5070 Ph: 08 8336 3835 Fax: 08 8336 9928 Carlo: 0415 818 262 George: 0418 807 465 Anthony: 0412 992 819 Email: admin@gagliardibros.com.au

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JRCM Commercial Joinery congratulates Hansen Yuncken on their 100-year milestone 35

The Rise of PPP Projects

The new century saw the emergence of another new delivery method, the public-private partnership (PPP), which enabled state and federal governments to work with the private sector to develop key infrastructure.

A Hansen Yuncken construction team in the late 1920’s

Hansen Yuncken had already tested some of the PPP principles in 1998 on Adelaide’s state-of-the-art EDS Building, the first office building constructed in the city for many years. As part of a consortium with Dutch bank ABN Amro, Hansen Yuncken was responsible for the design-and-construction of the building and 15 years of ongoing maintenance, ensuring careful consideration of all building materials, plant and equipment.

The Education Works New Schools PPP brought another opportunity for the company then in 2011, Hansen Yuncken started work on a landmark project of a very different kind – the $2 billion new Royal Adelaide Hospital. This was the largest, most advanced hospital ever built in Australia – and the second largest single building project in Australian history (after the new Parliament House in Canberra). For this project, Hansen Yuncken entered into a joint venture with Leighton Contractors. Hansen Yuncken took the lead role in securing the contract along with the project leadership, design and financial management. The scope of the PPP project was enormous; everything about this hospital was big and challenging.

The story of Hansen Yuncken is the story of its people. Techniques and technologies change, but the basic principles of ethical behaviour, respect for fellow employees, respect for customers, hard work, teamwork, loyalty and pride in your work and company have not. These principles remain the bedrock at Hansen Yuncken.’

— Peter Hansen, Director/Former Chairman

Hansen Yuncken has built some of the most iconic developments in Adelaide’s CBD alone. Spanning from the Royal Adelaide Hospital in the West to the National Wine Centre in the East, from the old and new Adelaide Casino on North Terrace through to the unique and inspiring SA Water building in Victoria Square. Over eight decades, Hansen Yuncken has cemented itself within the city footprint representing a commitment to creating high quality and long-standing buildings that form part of Adelaide’s unique heritage.

Indeed, the egalitarian, open, inclusive culture of Hansen Yuncken has been a standout since that chance encounter of the two founders on a Melbourne footpath 100 years ago.

Today, Hansen Yuncken is one of the largest privately owned commercial building contractors in Australia, and many employees recognise the benefits that flow from family ownership. These include a sense of stability and security, and a feeling of mutual commitment. The approachability of the owners, who make themselves readily available to staff and clients, is highly valued. Once in the company fold, hard work is expected from everyone, but it is also rewarded. Future leaders are identified and nourished through formal programs and informal mentoring. There’s an innate understanding that a positive company culture comes from a mix of experienced, long-term employees, who know and care about the business, and young up-and-comers, who bring energy, enthusiasm and new ideas.

Identifying and grooming future leaders has always been a priority for Hansen Yuncken. A quick glance at the company history reveals that age is no obstacle to career advancement. Potential is recognised and opportunities are offered as they arise. Then, it’s up to the individual to take the leap. Many senior people started off in the company as young apprentices or graduates, and have enjoyed a rapid career trajectory, meeting each challenge as it presents itself.

36

SA BUILDER SPRING 2018

Congratulations to Hansen Yuncken

for 100 Years in the building industry!

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37

In September 2016, the board was unequivocal in the internal appointment of Peter Salveson as CEO of Hansen Yuncken. Peter draws on the knowledge and experience gained over more than 20 years with the company and more than 35 years in the industry. Over his time at Hansen Yuncken, Peter has worked closely with previous leaders, including former CEO Peter Kennedy and Chairman David Beslich, and has held a variety of senior management roles, from South Australian State Manager to Development Director of the new Royal Adelaide Hospital.

Peter has a firm commitment to the people and culture of Hansen Yuncken, along with a focus on clients and continuing engagement to improve processes and efficiency. He also shares the company’s dedication to developing the wider industry through service with professional organisations.

“The construction industry today is vastly different to when our founding partners commenced their journey in 1918. Today we are more akin to a management services organisation, delivering our clients vision. We are a sophisticated management organisation, shouldering the responsibility for site safety, time performance and cost and quality control of complex projects for our clients, all the while managing key risks. Across our business, we have proven processes and procedures, developed over many years, that can be attributed to Hansen Yuncken’s stability, consistency and 100 years’ longevity,” said Peter.

Port Authority Building in Melbourne, completed in December 1931

38

SA BUILDER SPRING 2018

Shaping Hansen Yuncken’s Future

Every building project brings together many players with different expertise, experiences, commitments and objectives – builders, clients, architects, engineers and subcontractors, along with the building’s users and wider project community. The role of Hansen Yuncken is to chart a path through this complex landscape and manage the process to ensure the best possible outcome for all.

In South Australia, Hansen Yuncken retains a commitment to offer value, deliver on quality with certainty, to remain innovative and competitive in its field; and to thrive on delivering complex projects.

As a branch, it has a strong, committed and experienced team who are embedded amongst unique and complex projects across the State including the Her Majesty’s Theatre Redevelopment, Adelaide Casino Expansion Project, The Salisbury Community Hub and Rundle Mall Plaza Refurbishment.

The future for Hansen Yuncken is one of growth and opportunity and at the forefront of change and innovation, Hansen Yuncken is driving new digital technologies and championing new construction methodologies to continually better its business for the next 100 years.

Nilsen team on the HYLC New Royal Adelaide Hospital project

Hansen Yuncken and Nilsen have partnered on numerous projects locally and nationally for many years, sharing a great deal of success along the way.

Nilsen congratulates Hansen Yuncken on joining the “centurion club”, a truly remarkable achievement. We look forward to continuing our strong relationship for the next 100 years.

Nilsen (SA) Pty Ltd 100 Regency Road, Ferryden Park, SA 5010 WWW.MBASA.COM.AU

(08) 8440 5300 NilsenSA@nilsen.com.au www.nilsen.com.au 39

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SA BUILDER SPRING 2018

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:

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Banner 10

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Revolution Roofing

Beaumont Tiles

Haymes Paint

Ri-Industries Developments

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Routleys Bathroom Kitchen Laundry

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Keith Timber & Hardware

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Chevron Glass

Littlehampton Brick Co

Sustainability House

Contract Carpets

Lock Supplies

Taste Furniture

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TMK Consulting Engineers

CR Kennedy

Maxispan

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Creative Serum

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Tyrone Electrical Services

Dellta Project Management

MC Labour Services

Unitex Render Warehouse (SA)

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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.

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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.

Candice Klau

MBA Insurance Services South Australia

delivering profits er ok br e nc ra su in ly MBAIS is the on . & construction industry ng di il bu e th to ck ba directly