SA Builder Winter 2019

THE OFFICIAL JOURNAL OF THE MASTER BUILDERS ASSOCIATION OF SOUTH AUSTRALIA

WINTER 2019

BUILDER

Building Dreams Finesse Built and Little Heroes WITH

ALSO INSIDE

- Stephan Knoll Interview - Lessons Learnt: Lacross Towers Fire - What To Do When The Union Comes Knocking

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

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To find out more, visit your Fleet Specialist Dealer or call 1800 444 847. ®

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

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

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CONTENTS

12

Stephan Knoll: The Libs’ new generation

WINTER 2019 Cover image: ‘Little Heroes building dreams home’ by Finesse Built

Regulars

Features

FOREWORDS CEO’S Report

3

President’s Report

4

INSIGHT The top issue facing small building and construction businesses

Minister’s Report 5

2

8

FEATURES Train with the industry Masters: Get licensed

10 12

President: Peter Salveson

UPDATES Support for first homebuyers

6

Re-election of the Morrison government

6

Stephen Knoll: The Libs’ new generation

First homebuyers take bigger market share

6

Right of entry: What to do when the union comes knocking

14

Housing affordability

7

The delaminating disaster

16

Building approvals

7

Have you got the right license?

20

By the numbers

7

Elevating design quality

21

Planning reforms

8

Waterproofing

22

ABCC retained

8

Building dreams with Finesse Built and Little Heroes

23

Critical insolvency protection

24

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

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

INDUSTRIAL RELATIONS Composing a career in the building industry

30

The environmental impact of creation

26

Portable long service leave

31

How to attract, create and keep exceptional employees

32

HEALTH Constructing better mental health in the building trades

28

Return to WorkSA providing support

33

Working together for public health

29

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

Master Builders South Australia: PO Box 10014 Gouger St. 47 South Terrace, Adelaide, South Australia Phone: (08) 8211 7466 Fax: (08) 8231 5240

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

MEMBERSHIP High-end home builder celebrates 20 years

34

Host trainer of the month

35

Apprentice of the month

36

Advertising Manager: Yvonne Okseniuk

WHAT’S NEW

40

Advertising Sales: Steve Clark, Rose Delosreyes

ADVERTISERS’ INDEX

40

Email: marketing@arkmedia.net.au Web: www.arkmedia.net.au Managing Editor: Susan Guilfoyle Design Team: Andrew Crabb, Avacyn Chidzey

SA BUILDER WINTER 2019

CEO’S REPORT

Cost of uncertainty jeopardises future investment It’s heartbreaking to see that seven builders have gone out of business since late last year.

That means less work for the dozens of skilled tradespeople who are involved in home construction not to mention the hundreds of suppliers of housing products. It also means less opportunities for new apprentices and trainees flowing through the system.

In South Australia we are facing a perfect storm of factors that put new housing growth in freefall, with no less than 12 consecutive months of decline.

Ian Markos

Governments at all levels need to stand up for first home buyers, the many thousands of South Australians who work in the housing industry and their families. Master Builders SA is confident that our five-point plan to rejuvenate the housing sector and protect jobs in the industry, available on our website, will turn things around. All that is necessary is the political will.

Firstly, there are demographic challenges. With an ageing population and the well-known brain drain interstate, it means fewer people are in the market for a new home or looking to move into one. Couple this with the finance sector crunch as new rules and regulations make applying for finance and refinancing more difficult. Then there are the stamp duty Another lesson to be learnt from the recent insolvencies is the importance of costs that some other states have decreased for first home buyers. All these factors are understanding accounting and financial business matters. Proper cash flow management contributing to the squeeze that is sending some builders out of business. is absolutely crucial. It is clear that many of these builders went under because they underestimated the cost of building homes, and survived as long as they did purely In this environment, with the jobs and livelihoods of so many people in a vice, it is because they were paid in advance of their invoices. So, for quite some time they looked baffling that Onkaparinga Council launched legal action against a developer to – delay like they were making money, but when the final invoices came in there was no profit. at best – a development at Seaford Meadows. That development alone will support 1,200 jobs and 120 apprenticeships. Although legal action has been suspended to explore One solution would be to ensure an appropriate level of skill (including business mediation, in the meantime no jobs are created, and the legal action could recommence economics) as a condition of a licence being granted or renewed. All approvals, including at any time. home loan funding should require the licence of the builder to be verified, and all breaches should be strictly enforced with significant penalties.

This land was sold by the former Labor Government to the developer for the purpose of building a new housing development and is zoned residential, and during the Until then the Master Builders SA four hour finance workshop will give you a detailed extensive consultation process the developer had already made a series of extraordinary perspective on understanding business finances and how they relate to your business. We concessions to preserve open space in the development; even a commitment to rehouse a also have free access to an accountant on the fourth Thursday of every month. To book feral goat apparently living on the site! these options, contact our membership team on 8211 7466.

This same Council has now announced that it is going to try to scale back another development planned for Aldinga. This is the site the State Government has earmarked for a much-needed super school and an extension to the Seaford railway line. But if the development now proposed by Renewal SA is scaled back by Council, community infrastructure improvements would be at risk because the funding may no longer be available.

On another positive note, Master Builders’ continued strong lobbying on behalf of members bore fruit in the April Budget. Some of the most important wins were: • The instant asset write-off has been increased from $25,000 to $30,000 until 30 June 2020. It can be used every time an asset under that amount is purchased; • The turnover threshold to qualify for the instant asset write off has been expanded to businesses up to $50 million; • A $525 million skills package to create 80,000 new apprenticeships; This land, like the land at Seaford Meadows, is zoned as residential under the Council’s • The establishment of a National Skills Commission to drive long term reforms in own Development Plan. Those documents are meant to bring certainty and security, and the VET sector; allow everyone to plan with confidence knowing the future use of land. The unpredictable • A doubling of incentive payments to employers of apprentices to $8,000 per actions of this Council are putting that system at risk along with the economic benefits placement; and that flow to everyone including the residents of Onkaparinga.

• A $2,000 incentive payment for new apprentices.

If developers are facing these sorts of political obstructions, and rate-payer money is being wasted on lawyers when it could go towards projects that benefit the community, then it’s little wonder South Australian building approvals are declining.

Councils have a valuable job to do in setting the basic rules for development that everyone knows and understands in advance but once they start to undermine the basis of the system and second guess every project by re-writing the rules as they go, they threaten the future investment in their district, as well as the foundations on which the planning system is designed.

WWW.MBASA.COM.AU

Finally, there is no doubt our Strong Building, Strong Economy campaign was highly visible and effective during the election campaign. Some of our biggest wins were ensuring existing arrangements around negative gearing and the capital gains tax discount are maintained, greater assistance for first homebuyers and the retention of the ABCC. Ian Markos CEO, Master Builders SA 3

PRESIDENT’S REPORT

Celebrating and promoting excellence and professionalism The building and construction industry’s ‘Night of Nights’, the Master Builders SA Building Excellence Awards, will be here before we know it. The Awards showcase and rewards excellence in South Australia’s residential and commercial building and construction industry. Last year more than 1200 people packed the Adelaide Convention Centre to celebrate commitment to quality workmanship and recognise our industry leaders.

Master Builders SA has introduced a new category: Supporting Local Industry. This award celebrates outstanding commitment to local jobs, training, trades, manufacturers and goods and services throughout South Australia’s supply chain. The winner will be an exceptionally well-regarded corporate citizen, highly respected by customers, subcontractors, governments and other stakeholders. This is a tremendous initiative and one that I think reflects well on the industry and the Association, which has always been unashamedly parochial.

Our industry continues to evolve. Last year Melisha Willington from Sarah Constructions won the first ever Outstanding Woman in Construction award at the Building Excellence Awards.

This year’s event, locked in for Friday, 16 August, promises to be our biggest and best yet with a record number of entries received. Tickets, which include a delicious three course meal, a premium drinks package and outstanding entertainment are available on the Master Builders SA website and selling fast!

The Master Builders SA HiViZ Women Building SA membership; developed to encourage, mentor and promote women in the industry, continues to go from strength to strength. You could hear a pin drop during Susan Alberti AC’s entertaining and inspiring speech to 250 people at our annual HiViZ luncheon in May. Susan has worn many hats in her time but she has remained true to herself – a determined, strong-minded and passionate lady who will stop at nothing for what she believes in.

Susan spoke of how she owes where she is today to her father, husband, the men who encouraged her during her time at TAFE to gain a builder’s licence and the support of those within the business she took over after the passing of her husband. Her important message of leadership, self-belief, resilience and giving back is one we can all learn from.

Hansen Yuncken, CBUS Super and Fenwick Elliott Grace were all proud to support what was a fantastic day.

The building and construction industry continues to change rapidly, with bigger and more technically complex buildings being built and a digital revolution underway. It has never been more important to make sure you are up to date with the latest practices and requirements. Master Builder SA is one of South Australia’s leading providers of education and training in the building and construction industry so whether you are looking to up-skill or enter the workforce, improve productivity or simply ensure you are meeting legal requirements, we offer education that will help you succeed. Our courses will help build your future, shaping your career in many areas including technical, business and work health and safety. If you are serious about your career you need to check out the Master Builders SA 2019 Industry Ready Education Course Guide, available on the Master Builders SA website.

4

Peter Salveson

Master Builders SA has recently expanded the scope of trades offered by its Group Training Scheme and is looking to take on new apprentices. If you know someone or a friend of a friend that might be interested in a career in the building and construction industry, give the team a call today. With a Master Builders apprenticeship you are an employee of Master Builders SA and you are guaranteed full-time employment. With the looming skills shortage, the opportunities are extensive. Apprenticeships available include bricklaying, carpentry/joinery, painting and decorating, solid plastering, wall and ceiling lining, wall and floor tiling, cabinet maker, plumbing, roof plumbing, electrical, concreting and landscaping (traineeship).

Master Builders SA wants members to be part of leadership at every level of business and to assist you in developing leadership capabilities to help you succeed in your roles today as well as set you up for future career success. “Success Over Lunch” is a new initiative to give members more networking opportunities and first-hand access to individuals in the industry you want to learn from. Special guest speakers will inspire you to stretch your thinking, expand your networks and empower you to start making those moves you have been holding back on. Everyone is welcome at Success Over Lunch, whether you own a small business or you are an employee aspiring to climb the ladder in the industry. The first lunch was held on Friday, 7th June at Jarmer’s Kitchen and included a Q and A with Jarrad Morgan (2014 Young Builder of the Year; 2015 Specialist Contractor of the Year), Director, SA Construct, Melisha Willington, Glenn Whyte (2018 Certified Construction Professional of the Year) and Kieran Flanigan (2018 Certified Trade Professional of the Year).

Ensuring you have effective risk management systems in place to help identify, manage and evaluate potential hazards is critical to creating a safe work environment. Master Builders SA is currently offering a free one-hour WHS risk assessment valued at $175.

Our industry-qualified consultants can work with you to review your risk management system by conducting a compliance audit and risk assessment. For further information, contact the membership team on 8211 7466.

Finally, on a sombre note, Master Builders SA was saddened to hear of the passing of Graham Andrew Fricker AM. Graham was awarded a Member of the Order of Australia (AM) on Australia Day in 2011 for service to the building and construction industry through leadership roles with the Australian Institution of Building, to education and the community. A donation in memory of Graham can be posted to Salvation Army, PO Box 12, Fullarton SA 5063.

Peter Salveson President, Master Builders SA

SA BUILDER WINTER 2019

MINISTER’S REPORT

Construction industry legislation opens new opportunities

We’re almost halfway through 2019, and the Marshall Liberal Government is progressing our bold agenda to create a stronger economy and support greater prosperity for our state’s key industry sectors.

The successful candidates will have strong building and construction industry expertise, and they’ll also ideally possess experience in commercial and financial management, governance or law, and workforce planning.

As you would be aware, last year I introduced legislative reforms to modernise the Construction Industry Training Board (CITB) appointment process, and I’m pleased to say that this legislation was passed by the South Australian Parliament in March.

At least one member will represent the interests of employers, and one will represent employees.

This new legislation removes the previous requirement for the mandatory appointment of union nominees to the CITB, and I know this will be welcome news for the construction industry. New voting provisions will also remove vested interests from the Board’s decision-making.

It brings South Australian legislation in line with other states and territories by reforming the appointment process to focus on individuals with industry-specific skills, experience and knowledge.

It also ensures that training expenditure from the Construction Industry Training Fund is aligned with the industry’s future workforce needs.

This will enable the Board to respond to industry skills needs and align training with the Government’s $203 million Skilling South Australia program, and this in turn can only help us to achieve our goal to create more than 20,800 new apprenticeships and traineeships.

I expect that the new members will be appointed in late June 2019.

I’m sure you’ll agree that it’s very encouraging to see the Parliament’s support for the CITB so it can positively shape the construction industry workforce and more effectively capitalise on new opportunities.

The Marshall Liberal Government is increasing employment and training opportunities for more South Australians, particularly in key industries such as building and construction.

I’m very much looking forward to working with the new Board, and I offer my sincere appreciation to those people who put their hands up to be considered for a position.

Going on the high quality of candidates, the future of South Australia’s building and construction industry is in very good hands indeed.

I know many sectors of the industry are currently facing skills shortages. This new legislation will be critical to addressing these shortages and helping the industry to evolve and grow with South Australia’s economy.

Expressions of interest for the new Board closed recently and candidates are currently being considered for a minimum of four and maximum of eight positions on the Board.

WWW.MBASA.COM.AU

Hon. David Pisoni MP Minister for Innovation and Skills

5

UPDATES

Support for first homebuyers With support for first homebuyers a top election issue, Prime Minister Scott Morrison announced a $500 million commitment to establish the National Housing Finance and Investment Corporation (NHFIC) and operate the First Home Loan Deposit Scheme. This will help first homebuyers purchase a home faster by allowing them to access a loan offered under the Scheme by a participating financial institution.

Master Builders SA CEO Ian Markos welcomes the First Home Loan Deposit Scheme at a building site in Morphettville. Pictured behind Ian are Member for Boothby Nicolle Flint and Prime Minister Scott Morrison.

The Scheme will commence on January 1 2020 and be able to support up to 10,000 first homebuyer loans each year. Complementing the First Home Super Saver Scheme, which commenced on July 1 2017, the Scheme will give first home buyers better access to finance without having to save a 20 per cent deposit. It will available to eligible first homebuyers who have been able to save for a deposit of at least 5 per cent up to 20 per cent. Also, they would not be required to purchase lenders mortgage insurance, saving them approximately $10,000.

The policy was quickly supported by Bill Shorten and the Labor Party which meant it would be operational regardless of the election result.

First homebuyers take bigger market share, as investors wilt The first homebuyer share is now a seven-year high, accounting for 27.6 per cent of all owner occupier loans.

There is considerable variation from state to state, however.

The rise of the first homebuyer has coincided with further erosion in investor participation – now at its lowest in eight years. One of the original bases for Labor’s negative gearing/capital gains tax policy was that investors were squeezing first home buyers out of the market.

Recent developments show that the opposite is now the case, with the first homebuyer share growing steadily while investor activity continues to plumb deeper lows.

During March 2019, First Home Buyers enjoyed the largest share in the Northern Territory, with 42.9 per cent of owner occupier housing loans. This was followed by Western Australia (36.9 per cent), Victoria (30.0 per cent) and Queensland (27.0 per cent).

FHB participation was lowest in Tasmania (20.7 per cent), followed by South Australia (21.7 per cent), the ACT (22.0 per cent) and New South Wales (24.8 per cent). The implementation of the First Home Loans Deposit Scheme should boost these shares everywhere.

Re-election of the Morrison Government As you will be aware the Liberal-National Party Coalition has been returned to government.

Together we stood up for our industry There is no doubt Master Builders was the leading industry advocate at the Federal election and we are proud that our “Strong Building, Strong Economy” was successful in providing our members with a strong voice during the campaign. Together we ensured Master Builders was front and centre and our advocacy “cut through” on issues that matter to member’s business success.

Together we delivered The election was one of high stakes and big wins for our industry. Many of our members are breathing a sigh of relief they did not have to endure the surge in union bullying that would have accompanied the election of a Shorten government. Residential builders are relieved Labor’s policies to double capital gains tax and restrict negative gearing will not be implemented and the housing sector is already enjoying a boost in confidence as a result.

Next steps Building and construction is Australia’s second largest industry and as its leading voice Master Builders will work with the Morrison government on the implementation of its policies that matter to our industry.

We will continue to strongly advocate for our policy priorities. Master Builders has your back, and that is never going to change.

Summary of Housing Loans by State, March 2019

6

NSW

VIC

QLD

SA

WA

TAS

NT

ACT

AUS

FHB Share of Owner Occupier Home Loans

24.8%

30.0%

27.0%

21.7%

36.9%

20.7%

42.9%

22.0%

27.6%

Investor Loans (change on previous month)

-3.5%

-4.9%

-2.8%

-4.2%

11.3%

-3.8%

-15.2%

-9.2%

-2.7%

Investor Loans (change on same month last year)

-25.1%

-26.3%

-19.5%

-13.9%

-15.7%

-15.6%

-38.7%

-28.9%

-25.9%

Loans for Home Construction (Owner Occupiers) (change on previous month - %)

8.8%

4.2%

12.1%

15.3%

12.4%

11.3%

na

na

0.1%

Loans for Home Construction (Owner Occupiers) (change on same month last year - %)

2.4%

-8.5%

-5.5%

13.8%

0.9%

28.3%

12.0%

29.3%

-1.8%

SA BUILDER WINTER 2019

Housing affordability “Make Housing Great Again”, our five-point plan to improve affordability, has been widely promoted to all sides of politics and appeared in television, radio and print media. We are confident these policies would help deliver a far stronger housing industry.

Building approvals The “credit crunch” has battered the number of building approvals in most states and territories. ABS statistics released in May show why improving affordability is a top priority for Master Builders: Summary of New Dwelling Approvals, April 2019:

Top of our wish list for this year’s State Budget is a stamp duty exemption for first homebuyers on new builds up to the median house price. This is a policy that has worked extremely well under both Liberal and Labor governments in New South Wales and Victoria. Not only that, independent modelling by Hudson Howells shows abolishing stamp duty in South Australia would stimulate construction of up to 1960 additional houses, create up to 4700 new full-time jobs and create a net state government gain of between $17.6 million and $45 million.

Victoria is a great example of what stamp duty abolition can do for first homebuyers, builders and the wider economy. Since they abolished stamp duty for first homebuyers in July 2017, their number of owner occupied first homebuyers has increased at roughly three times the rate of South Australia compared to the 18 months prior to the abolition.

The Marshall Government has a tremendous opportunity in the Budget to help get the housing market moving again. There has been a spate of welcome news in recent months, starting with the announcement of the Morrison Government’s First Home Deposit Scheme. This was followed by the Australian Prudential Regulation Authority proposing removing guidance that customers should be able to repay their loan if their interest rate increased to at least seven per cent. APRA suggested recommending lenders instead make serviceability calculations using a 2.5 per cent rate buffer. Many analysts have predicted that the June reduction in the RBA cash rate to an all-time low of 1.25 per cent will be followed by further decreases later this year. Rate cuts have a positive effect on the housing market because they allow people to borrow more money and promote greater confidence in the market, and it was pleasing to see Commonwealth Bank and National Australia swiftly pass on the 0.25 rate cut in full.

WWW.MBASA.COM.AU

On a positive note, Adelaide is one of the few capital cities not to have seen a drop in home prices over the past year (according to CoreLogic figures for April 2019). Home prices were up 0.3 per cent over the past year – a tiny increase, but to be holding your ground at the moment is an achievement at a time when prices are down in most capital cities over the past year (including a 10.9 per cent drop in Sydney).

More positive news came in May when APRA flagged loosening requirements for banks to use a minimum seven per cent interest rate when assessing borrowers’ ability to service loans.

By the numbers South Australia Total Construction Employment

72,151

February 2019

Construction Employment - Full Time

63,821

February 2019

Construction Employment -Part Time

8,330

February 2019

Total Employment

850,288

February 2019

Employment - Full Time

554,937

February 2019

Employment - Part Time

295,351

February 2019

Construction as % of Total Employment

8.5%

February 2019

Construction as % of Full Time Employment

11.5%

February 2019

Construction as % of Part Time Employment

2.8%

February 2019

Number of Small Construction Businesses

22,452

End of June 2018

Value of Total Building Work Done

$6.21b

Year to September 2018

Value of Total Construction Work Done

$12.84b

2018 CY

Number of New Dwelling Starts

11,881

Year to September 2018

Number of Dwellings Still Under Construction

10,564

End of Sept 2018

7

UPDATES

Planning reforms Work continues on the rollout of the new Planning and Design Code, which will be fully operational from July next year. The Code will replace all 68 councils’ development plans with a single set of planning rules. This will enable consistency when assessing projects across the state.

Consultation on Phase One of the Code (the outback) has recently ended and as part of Minister Knoll’s Liaison Group Master Builders SA will provide regular feedback to the Marshall Government on Phase Two (the regions, mid-2019) and Phase Three (the entire state, late June 2019). The Code is expected to be fully-operational by July 2020.

After more than 140 submissions, a State Parliamentary inquiry has recommended a heritage overhaul, including streamlining the listing process and an audit of current heritage places. An encouraging sign has been the State Planning Commission’s confirming that “contributory items” status, which is currently afforded to about 12,000 buildings or sites will no longer exist under the new Code.

ABCC retained CEO Ian Markos had a lengthy piece on the importance of maintaining the Australian Building and Construction Commission (ABCC) in the May edition of The Spectator. Since the ABCC was re-established in December 2016, the CFMEU and their officials have racked up more than $8 million in fines. In April, Commissioner Stephen McBurney said the agency had 38 cases before the courts, including 14 where the union had been found liable but a penalty was yet to be handed down.

Unfortunately, despite all the evidence for the ABCC to be retained – the regular heavy fines and the complete lack of remorse shown by convicted officials – Bill Shorten promised to abolish it.

The CFMEU flexed plenty of muscle and donated more than $4.2 million to the Labor Party since Shorten was elected.

If a Shorten Government had abolished the ABCC, our industry would have been exposed to an unacceptable level of risk. Prior to the elections Master Builders SA had discussions with the Marshall Government about potentially establishing a South Australian based industry watchdog and Code to protect the rule of law on construction sites. However with the ABCC now secure for another three years a local body will no longer be required.

INSIGHT

The top issues facing small building and construction businesses Key reasons for this include an overall increase in turnover over the six months to December 2018, increased staff hiring and improved cash flow. Businesses with more than 20 employees were more positive when looking back on the last six months.

For the following six months (to June 2019), almost half (46 per cent) of the businesses said they expect business conditions to improve with only 6 per cent expecting conditions to deteriorate over this period. Around two-thirds (63 per cent) of businesses expect to hire more staff and nearly half (44 per cent) of businesses expect turnover to increase.

To provide more tailored support to small businesses in the built environment, Cbus has developed a Small Business Insights Report.

The Cbus Small Business Insights Report is based on a survey of Cbus employers conducted in December 2018, incorporating the voice of more than 900 Australian small businesses working in the building and construction industry.

8

Initial insights have identified small building and construction businesses appear to be doing well, despite headwinds in the residential construction sector, with many businesses providing positive feedback.

Around 40 per cent of businesses reported that their circumstances had improved in the six months to December 2018 and only 13 per cent reported deteriorating conditions.

Despite the positive outlook, small businesses face some pressing business issues, including finding new work and skilled staff. Other significant issues included managing cash flow, managing administration and paper work, as well as collecting accounts receivable.

View the full report at www.cbussuper.com.au/ smallbusinessreport to see how your business compares to other small businesses and find valuable insights for your business.

For more information call 1300 361 784 or visit www.cbussuper.com.au for a copy.

SA BUILDER WINTER 2019

IT’S NOT WORTH THE RISK!

Make the safety of your people a priority.

FREE ONE-HOUR WHS RISK ASSESSMENT VALUED AT $175* Ensuring you effective management systems in place to help you identify, Make thehave safety ofriskyour people a priority. manage and evaluate potential hazards in your workplace is critical to creating a safe work environment.

FREE ONE-HOUR WHS RISK ASSESSMENT VALUED AT $175* Master Builders SA’s industry-qualified consultants can work with you to review your risk

IT’S NOT WORTH THE RISK!

management system by conducting a compliance audit and risk assessment of your Ensuring you have effective risk management systems in place to help you identify, organisation. manage and evaluate potential hazards in your workplace is critical to creating a safe work environment.

We can walk you through the entire risk management process or conduct workplace hazards, identifySA’s tasks that are safety critical, and can identify unknown hazards Master Builders industry-qualified consultants work with yousafety to review yourto risk potentially reduce theby riskconducting of injuries and or fatalities.audit and risk assessment of your management system a compliance organisation.

Take a proactive approach to workplace safety and let us help you determine if your workplace practices are complying WHS legislation.

We can walk you through the entire with risk management process or conduct workplace hazards, that are safety critical, and identify unknown safety hazards Whether identify you are tasks a worker, an employer or health and safety representative Masterto potentially reduce the risk of injuries and or fatalities.

Builders SA’s SQE service is available to help. To get assistance with your health and safety and meet legal responsibilities, ourlet SQE Take arisks proactive approach to workplace contact safety and us team. help you determine if your workplace practices are complying with WHS legislation.

For further information regarding Master Builders SA’s WHS Risk Assessment or to book a free consultation, contact the Membership Team on 8211 7466 or Whether you are aplease worker, an employer or health and safety representative Master membership@mbasa.com.au Builders SA’s SQE service is available to help. To get assistance with your health and safety risks and meet legal responsibilities, contact our SQE team. *Booking fee of $25 is payable to secure the WHS Risk Assessment.

For further information regarding Master Builders SA’s WHS Risk Assessment or to book a free consultation, please contact the Membership Team on 8211 7466 or membership@mbasa.com.au Master Builders SA 47 South Terrace Adelaide SA 5000

*Booking fee of $25 is payable to secure the WHS Risk Assessment. p 08 8211 7466

e sqe@mbasa.com.au

w mbasa.com.au

While care has been taken to ensure that information contained is true and correct at the time of publication,

Master SAafter the time of publication may impact the accuracy of this information. 30/04/2019 changes inBuilders circumstances 47 South Terrace Adelaide SA 5000 WWW.MBASA.COM.AU p 08 8211 7466 e sqe@mbasa.com.au w mbasa.com.au

9

FEATURE

Train with the industry Masters: get licensed Two years ago, Master Builders SA initiated an ambitious project; a course that provides the most relevant information to our students in the quickest possible time to assist them obtaining a “general builders” licence.

The project started as a result of internal and external research. We found the traditional Certificate IV course in building and construction was not meeting our expectations and limited opportunities because of time commitments and inflexibility. We are glad to say, two years on, we have developed the “Master Builders SA Certificate – Building and Construction”. This certificate gives our students the information they need to take the next step in their careers. The objective of the certificate is three-fold: 1) Help the student gain knowledge on topics relevant to them obtaining or upgrading a

building licence. Out certificate offers a series of technical courses that include Timber Framing Code, Roof Trusses, Wet Area, Building Codes and Standards and Construction of Buildings. All of which provide critical information specific to the type of questions asked by Consumer Business Services during a licence application interview.

2) Ensures the student is updated on the current health, safety and documentation

requirements. This topic is covered primarily within three classes offered in our certificate, that being Safety Supervisor & WHS Management, Manager and Supervisor Training and Site Administration.

3) Assists the student to be the best business person they can be. Content on this topic

is found in our certificate within the Contractors Licencing Course, Estimating Stock Control, Understanding Licencing and Approvals and Understanding the Meaning of Contract.

Our certificate is different from a traditional Certificate IV because it is aimed at people who have acquired a solid level of building knowledge gained through onsite experience.

The classes offered in the Master Builders SA Certificate are delivered over a shorter time span (sometimes two nights) than those delivered within a certificate IV. This is possible because we understand that students who attend our classes are capable of absorbing information faster.

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Other advantages of our certificate include: • Payment is only required prior to the class being attended, rather than one big lump sum.

• Classes are run between two to four times a year, meaning if you miss one, you don’t have to wait long before attending the next one. Most classes are also run during the evening, meaning people who work during the day can attend at night.

• Assessments are shorter but relevant to licencing requirements.

There are many advantages to completing our certificate. Knowledge is power, and in this course, it is delivered in spades. The lectures are amenable and happy to assist when help is required.

Should you want to take the next step in the building and construction industry and become a licenced professional capable of project managing residential development, come and join us by doing the Master Builders SA Certificate in Building and Construction.

SA BUILDER WINTER 2019

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FEATURE

Stephan Knoll:

The Libs’ new generation Barossa MP Stephan Knoll has been hailed by many in the media as a future Treasurer and even Premier. But standing proudly in his expansive North Terrace office with 270-degree views overlooking a city skyline filled with cranes, including Hansen Yuncken’s Skycity Adelaide Casino expansion, he seems very happy with where he is right now.

And why wouldn’t he be? Still only in his mid-30s, Knoll is already a Senior Minister in the first South Australian Liberal Government in 16 years. He’s got responsibility for Transport, Infrastructure, Housing, Planning and Local Government, without doubt some of the most important portfolios for the state’s economy. To the untrained eye it might appear he has had a meteoric rise, but Knoll has had a life-long interest in politics, and despite his relative youth more runs on the board in the private sector than most of his parliamentary colleagues.

“Politics has always been something that excites me,” says Knoll. “I certainly didn’t expect to be here at such a young age but as they say in politics timing is everything, and the opportunity to get into parliament at the age of 30 was too good to pass up. Having served one term in opposition and being given the opportunity to be a Minister at the age of 35 is a massive privilege.

“The first 12 months have been a blur, there’s a lot to learn and I’m not afraid to say the words ‘I don’t know’. Twelve months in however, I think we’re now more settled as a government and certainly I feel more settled.

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“There are big reforms to undertake this year: planning, public transport, local government; there’s also a lot of work we’re doing about finishing off our civil construction pipeline. I think we’ve been pretty honest about the challenges in front of us, especially budgeting.

We said before the election we wanted balanced budgets and we’re doing that. We also haven’t hidden away from tough conversations we need to have with the community about government spending, and in my area that has led to some difficult conversations but I think we’ve been honest about that, we haven’t tried to hide it. We genuinely want to see balanced budgets.

“I also think we’re a government that has delivered on our election commitments whether that be tax reduction, introducing legislation to parliament and the various infrastructure projects we took to the election. I think we’ve kept faith with the South Australian people, obviously with the exception of the right-hand turn!”

Elected to State Parliament as the Member for Schubert in 2014, Knoll was born and educated in Adelaide and completed a Bachelor of Commerce (Marketing).

Following this he became general manager at his family’s business, Barossa Fine Foods, where he learnt first-hand the challenges small businesses face as they seek to grow.

“Sausage making is a world away from building but a broad small business background gives you

a strong understanding of financial analysis, how to balance the books and the importance of strong financial management. It also gives you strong human resource management skills and that’s something I think can be missing in politics. The fact that I’ve had to hire and fire before, and to try and motivate people to head towards a single goal in business is a skill that is very much needed in politics considering you’ve got so many more stakeholders, from the voters to government departments and industry associations like Master Builders.”

Knoll’s strong interest in and obvious respect for Master Builders SA as an important stakeholder is appreciated.

Since becoming a Minister, Knoll has been a regular at Association events including the Housing Committee, Commercial Contractors’ Committee and the Building Excellence Awards, where he relished the opportunity to rub shoulders with industry leaders.

“I’ve really enjoyed attending the Housing and Commercial Contractors Committee meetings. It’s been extremely valuable to get that direct feedback, and it’s a good cross section of the industry,” says Knoll.

“I’ve been really impressed with how Master Builders engages and their commitment to driving the industry forward in a way that delivers better quality and outcomes as opposed to just trying to do what is only in the shortterm interest. Master Builders, unlike other associations, represents the entire industry.

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Minister Knoll with team Mossop at the Building Excellence Awards

“When feedback comes through on potential changes, legislative changes or when the MBA puts a position out I know that it’s coming from more than just a small part of the industry, it’s a position that to a large extent tries to represent the way forward for the industry as a whole as opposed to a smaller vested interest group. So that’s certainly been very welcome and the MBA awards was the biggest group of people I’ve ever seen!”

Without doubt one of the biggest areas of change for our industry is planning. South Australia is currently undergoing the biggest modernisation of its planning system in 20 years. The new Planning and Design Code, which will replace council development plans with a single set of rules, will be fully operational state-wide by July next year, and as a member of the Minister’s Liaison Group Master Builders definitely has the Marshall Government’s ear.

“By and large it’s my job to deliver on the promise of the reforms put in place by my predecessor John Rau, and certainly the feedback I’ve received from industry is that ‘we like the intent of the legislation, we just want to make sure it’s actually delivered’ and certainly the assessment pathways discussion paper we put out, the timeframes and the structures in place to get planning approvals turned around quicker delivers on that promise. I’ll be interested to see how it works in practice and what improvements there needs to be made.

“We are looking to make some subtle changes to the Code.

I’ve had a lot of feedback about really small minimum lot size and two for one development in certain suburbs. There are issues in Marion Council, very much in Campbelltown and down towards the coast and we want to make sure we get that right. We think that the system’s probably gone too far. We’ve seen six or seven houses on a single block and the associated impacts that come with that. So, at the moment Campbelltown City Council are doing some work around how we change that. I’d like that work to feed in to the broader Code. But we know that we can’t just cut off density in and of itself so we’re also looking at areas where we can get larger master planned high density communities and we see some really good outcomes at Lightsview and the Cedar Woods Development at Glenside where you can get good open space, amenities, you can deliver a product that the community wants but you make sure that you have WWW.MBASA.COM.AU

Minster Knoll at a Master Builders SA Commercial Contractors Committee meeting

the infrastructure in place to deal with it. So, we’ll see that After the March 2018 election Knoll sacked long-time subtle change come in as part of the Code. We need to shape DPTI Chief Executive Michael Deegan, leaving a the policy at the edges so we’re getting better outcomes.” leadership vacuum until Tony Braxton-Smith was appointed in late September. Braxton-Smith had been Improving housing affordability is always a top priority for employed as a Deputy Secretary within the New South Master Builders, and well and truly on Knoll’s radar.

Wales transport department and had previously held the positions of Chief Executive of Great Southern Rail, “I think there are more things we can do. Something Executive Director of Transport for Serco Asia Pacific, practical we are doing is around trying to improve Chief Executive of Dreamworld and Regional Director of planning approvals so that you can more speedily get a P&O Services in Latin America. Braxton-Smith will be project from architectural drawings to concrete in the a guest at the Master Builders Commercial Contractors ground. In my view we also need to do more about the Committee in August. cost of building a house and there are a number of issues on the table at the moment including what does or doesn’t “Tony’s been brilliant and I’m really glad we did wait to go into the National Construction Code. I think too often get the right person,” says Knoll. “He does come with a housing affordability gets lost when people look at the very strong public transport focus which is good because National Construction Code and the minimum standards we’re undertaking the biggest public transport reforms they’d like in it.

South Australia has seen in decades. He also brings with his private sector experience a customer service focus and “Longer term the biggest thing we can do is around that is something where I think there has been criticism population growth. I think that’s something that will help all of the department in the past. Tony is very keen to change parts of the construction industry. We’ve seen some positive that mindset and that perception. news in that South Australia’s net interstate migration loss is coming down. We’re also very strong on wanting “As a Minister with these portfolios it’s also my job to to see increased interstate migration to South Australia. support the Marshall Government’s broader agenda, We understand there’s an issue right now, the difficulty whether that be increased population growth, skills about providing short-term fixes is quite evident here but development or trying to improve jobs growth, I’m certainty there’s a number of steps we’re taking to turn certainly looking at how DPTI can support the broader this around. I would point out that we’ve actually had the agenda and that’s been really exciting. I think this year lowest drop in terms of housing approvals out of any state will be when we make good on our promise to lower red in Australia. This is an issue that’s being felt right around tape and regulation to improve jobs growth and to really the country and certainly the Banking Royal Commission see our economy start to kick along and for us as a State to and the tightening of credit has a lot to blame here, but as a have a higher ambition for ourselves and that’s something government we’re trying to use the levers we’ve got to push the Premier talks about a lot. We’ve got such a beautiful things along and if we’re successful I think there will be a city and State and with the new government we have a real very bright future for residential construction.” opportunity to enhance the place where we all live.”

Knoll bristles at any suggestions by the Labor opposition of a “valley of death” for government infrastructure.

“Any talk of an infrastructure valley of death is complete nonsense. In our first Budget we handed down $11.3 billion worth of spending. That is a record well above what we’ve seen in the past, and there’s more to come. In the Federal Budget there was some really good news for South Australia. There’s a really strong government-led pipeline for both civil and commercial.”

Author

Will Frogley, Director of Policy and Communications 13

FEATURE

Right of entry:

What to do when the union comes knocking Master Builders SA is expecting an increase in union activity on construction sites in South Australia this year. In South Australia, union officials typically seek to enter sites under section 117 of the Work Health Safety Act 2012 (SA), which does not require prior notice to be provided to the site occupier. Significant penalties may apply where right of entry laws are not complied with, including where a lawful entry is refused or delayed, or an unlawful entry occurs.

Right of entry under section 117: Rights and obligations Section 117 of the Work Health Safety Act 2012 (SA) (WHS Act) entitles union officials (“permit holders”) who hold the necessary permits to enter a workplace for the purpose of inquiring into a suspected contravention of the WHS Act. The suspected contravention must relate to, or affect, a “relevant worker”, being a worker who is a member, or eligible to be a member, of a relevant union who is entitled to represent the worker, and who works at the workplace.

Entry permits A union official seeking to enter a worksite under the WHS Act must hold a valid WHS right of entry permit, issued by the South Australian Employment Tribunal and a valid right of entry permit issued by the Fair Work Commission under the Fair Work Act 2009 (FW Act).

Upon request, the permit holder must produce both entry permits for inspection as well as photo ID. If the official does not have both entry permits, or refuses to produce them when requested to do so, the official will not have a lawful right to enter the site. WHS entry permits are typically business card size with a photograph (see example below), whereas permits issued under the FW Act do not require a photograph of the permit holder.

Reasonable suspicion The permit holder must also have a reasonable suspicion that a contravention of the WHS Act has occurred, or is continuing and involves a risk to the health or safety of a relevant worker. To be satisfied of this, the site occupier should request the permit holder to identify the specific alleged safety contravention they are seeking to inquire about. The occupier may also ask the permit holder how they became to have the suspicion (for example, whether they have observed it themselves or been notified by a worker), however the permit holder is not required to disclose the name of any worker who may have notified them. The occupier should also ensure that the union is entitled to represent the relevant workers who the suspected contravention relates to. For example, an official 14

from the Communications, Electrical and Plumbing Union (CEPU) may enter to inquire about a suspected contravention involving a risk to the health and safety of an electrician or plumber, but not a carpenter.

If the official produces both entry permits and photo ID, and holds a reasonable suspicion of a safety contravention, the permit holder is entitled to enter the site during the usual working hours at the workplace to inquire into the suspected contravention.

Entry notice The WHS Act requires the permit holder to provide a written entry notice including details of the suspected contravention to the relevant Person Conducting a Business or Undertaking (PCBU) and the PCBU with control of the workplace. While the entry notice is often provided at the time of the entry, the WHS Act requires the notice under section 117 to be provided “as soon as is reasonably practicable after entering a workplace”. There is no requirement to give the notice where this would defeat the purpose of the entry or unreasonably delay the permit holder in an urgent case.

Where an entry notice is provided, the site occupier should ensure that it contains sufficient details of the suspected contravention, including the specific area that the contravention is alleged to relate to. The entry can then be limited to the specific issue or issues identified in the notice.

Permit holders should be requested to provide further information where entry notices contain general references only, such as “access/egress” or “traffic management”.

The entry notice must also contain: the full name and permit number of the permit holder; the name of the union; the relevant section of the WHS Act that the official is entering under; the name and address of the worksite; the date of entry; and a declaration including the section in the union’s rules that entitles the union to represent the workers.

Act. The permit holder must comply with any reasonable request by the relevant PCBU in relation to work health safety requirements such as completing a site induction (unless this would unreasonably delay the entry), wearing appropriate PPE and using designated walkways.

A permit holder must not intentionally and unreasonably hinder or obstruct any person or disrupt any work, or otherwise act in an improper manner. The permit holder is permitted to make inquiries by inspecting plant and consulting with relevant workers but it not permitted to discuss matters unrelated to the suspected contravention such as union membership, wages and enterprise agreements. The permit holder is not authorised to “shut down” a site, however appropriate steps should be taken by the site occupier to address any genuine safety issues that are identified. SafeWork SA may also issue prohibition or improvement notices, in the event of an actual or potential safety issue.

Where a permit holder enters a site unlawfully or otherwise breaches their obligations, assistance should be sought from Master Builders SA, SafeWork SA, the Australian and Building Construction Commission (ABCC), or the South Australian Police. Detailed notes should also be taken of the incident.

Inspection of documents While entering the workplace under section 117, the A permit holder seeking to enter a site under section 117 permit holder may require the relevant PCBU to allow is also required to give consideration as to whether it is them to inspect, and make copies of, any document that is reasonably practicable to give notice to SafeWork SA about directly relevant to the suspected contravention and that is the proposed entry. If SafeWork SA does not accompany kept at the workplace or accessible from a computer at the the permit holder on site, the permit holder must provide workplace (subject to any direction given by SafeWork SA Safework SA with a report on the outcome of their and applicable legal obligations). inquiries for consideration of further action.

If the official seeks to inspect or copy an employee Permit holder rights and obligations on site record or other document that is directly relevant to the A permit holder exercising a right of entry should be suspected contravention but is held by another person, at accompanied by a representative of the site occupier at all least 24 hours’ notice must be provided before the entry to times, to ensure that the entry is compliant with the WHS inspect the record or document.

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Other rights of entry Other than section 117 of the WHS Act, all other right of entry laws require a permit holder to provide at least 24 hours and not more than 14 days’ notice of entry, allowing the occupier time to prepare for the entry and seek advice where required. A permit holder may provide notice of entry under section 121 of the WHS Act to consult and advise workers on health and safety matters, section 484 of the FW Act to hold discussions with workers; or section 481 of the FW Act to investigate a suspected breach of FW Act or workplace instrument.

Penalties Under the FW Act and WHS Act, it is unlawful for a permit holder to enter a site where the requirements of the relevant Act have not been complied with. It is also an offence for a person to refuse or delay a lawful right of entry, or intentionally hinder or obstruct a permit holder who is lawfully exercising a right of entry. A contravention can result in investigations and prosecutions by the ABCC and/or SafeWork SA, and significant financial penalties. A contravention may also constitute a breach of the Code for the Tendering and Performance of Building Work 2016 (Code), where the contravention involves a Code-covered entity.

Summary Site occupiers and employers should carefully assess union requests to enter a worksite in light of the legal requirements for a valid right of entry. To minimise the risk of a potential breach of right of entry laws, companies should ensure that on-site supervisors and managers understand their rights and obligations under right of entry laws. Master Builders SA can assist members by providing necessary training and responding to site entries when they occur.

Author s

Sam Condon, Director, Workplace Relations and Emma Papps, Industrial Relations Adviser

Note: The federal Liberal/National government has implemented changes to the Fair Work Regulations 2019 to take effect on 1 July 2019, which will require entry permits issued under the FW Act to include photo ID.

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FEATURE

The delaminating disaster At about midnight on 24 November 2014, French tourist, Jean-Francois Gubitta, came home from work to Apartment 805 in the Lacrosse Towers in Melbourne (“Lacrosse”). Lacrosse was constructed in 2011. He went out on to the balcony for a smoke. He left his cigarette butt in a plastic food container on the timber balcony table.

At 2:23am the smoke alarm in his apartment sounded and generated an automatic alarm in the Melbourne Fire Brigade headquarters. Six minutes later, the first fire crew arrived. The fire by then had spread vertically six floors. A further six minutes later, the fire had reached the roof of Lacrosse above level 21. The speed of the vertical spread of fire was unprecedented. To the great credit of the emergency services and the fire prevention systems in Lacrosse, all 400 occupants of Lacrosse evacuated safely and without injury, including Jean-Francois.

Investigations have shown that the external cladding to Lacrosse was the primary cause of the rapid spread of the fire. The cladding comprised about 4,000 square metres, on two elevations, of Aluminium Composite Panelling (“ACP”). ACP consists of two layers of 0.5mm thick aluminium sheeting between which is sandwiched a layer of polyethylene of about 4mm in thickness. The material is strong, light weight, easily bent to a shape and offers long term aesthetic appeal.

In the last two decades its use in Australia has become widespread.

Other fires On 14 June 2017, fire broke out in the 24 storey Grenfell Towers flats in north London. That building was also clad in ACP. The fire was devastating, and is reported to have resulted in the deaths of 74 persons. Investigations into that fire, and whether criminal charges should be laid, are ongoing.

At about 5am on 4 February 2019, ACP cladding on the 22nd floor of the Neo 200 Apartments in Spencer Street Melbourne caught fire. It is thought the fire probably resulted from a discarded cigarette butt thrown from a higher apartment, landing on cardboard boxes on the balcony. The Neo 200 apartments contain only a narrow strip of ACP cladding, continuous vertically up the façade.

The fire quickly spread to the 29th floor before being extinguished by the rapid reaction of the emergency 16

The proceedings The owners of Lacrosse sued the builder for $12.7 million, essentially for constructing an unsafe building, constructed with ACP cladding. The builder denied liability but said that, if it was at fault, the fire engineer, the architect and the building surveyor or certifier should reimburse it for its liability. The builder said it had relied upon their professional expertise when it incorporated ACP cladding into the design of Lacrosse.

The Building Code As with all buildings in Australia, Lacrosse was required to comply with the BCA applicable at the time of its construction. Since Lacrosse was built, the BCA has had a name change and is now known as the National Construction Code (“NCC”).

Compliance with the BCA can be achieved by two paths: strict compliance, known as deemed to satisfy, (“DTS”) or alternatively, a performance-based solution. Where a performance-based solution is adopted, an assessment is made as to whether, notwithstanding the literal non-compliance of the method or product, the performance of the building is safe if the method or product is adopted.

In the Lacrosse project, the use of ACP was said to be a DTS solution. Hence, it was necessary that it complied, in every respect, with the literal requirements of the BCA.

services. The Neo 200 fire evidences that even a narrow vertical strip of ACP cladding on a facade may be enough to create a significant risk of rapid fire spread on the façade. Across the world there have been dozens of similar fires.

The recent decision Against this background, on 28 February 2019, Judge Woodward delivered his decision in respect of the cost of rectifying and making Lacrosse compliant with legislation. The decision is likely to send ripples through the construction industry and is of interest to architects, fire engineers, building certifiers and building contractors.

The decision of Judge Woodward runs to 227 pages. Its wider ramifications cannot be fully summarised in a short article. This article focuses on Judge Woodward’s interpretation of the Building Code of Australia (“BCA”).

Significantly, Judge Woodward noted that since the 1990’s, some have been expressing concern as to the safety of using ACP as external cladding. The evidence in the Lacrosse case showed that ACP, when subjected to significant heat by way of a fire, delaminates.

The delamination exposes the interior polyethylene layer to flame and oxygen. Some have described the polyethylene layer as “frozen petrol”, saying that each square metre of ACP, once delaminated, and subjected to heat, yields the equivalent of 5 litres of petrol. In Lacrosse, the fire spread vertically from floor to floor at about the rate of 50 seconds per storey.

The BCA classifies a residential building of more than three storeys as a Class A building. Cladding that forms part of a class A building, such as Lacrosse, had to be “non-combustible” unless it met with the exclusions set out in clause C1.12 of the BCA. Alternatively, if the cladding could be said to be a “finish” or an “attachment” to Lacrosse, clause C2.4 of Specification C1.1 of the BCA allowed it to be a combustible material. It is these two exceptions that have been put forward as justification for a DTS use within Australia of ACP cladding on the exterior of apartment blocks. Since the recent fires, there has been debate within the construction industry as to how these exclusions should have been interpreted.

In his decision, Woodward J. gave some useful comment on how the BCA should be interpreted. Woodward J. said the principles established over the years by Courts when interpreting contracts or legislation should be applied to the BCA. These principles require purpose, context, and precise language, to be examined, to interpret a document.

Woodward J also referred to the International Fire Engineering Guide (“IFEG”) and noted that the expert for the builder described it as “… a well-established and recommended methodology for the application of fire safety engineering, including the preparation of fire safety engineering reports”. The IFEG is not mandated by the BCA as a code but was referred to in the consultancy agreement between the builder and the fire engineer.

Before turning to look at the way the Court interpreted the BCA, it is worthwhile noting the terms of the relevant contracts.

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The various contracts The builder and the owners had entered into a detailed design and construct contract. The builder had entered into consultancy agreements with each of the architect, fire engineer and building surveyor.

The builder’s contract with the owners included terms requiring the builder to design and construct the works in accordance with their requirements and to supply good and proper materials and to carry out the work in accordance with all laws and legal requirements (thereby including the BCA). In any event, in Victoria, as in all other States and Territories in Australia, warranties to a similar effect are implied by law into all contracts for the construction of residences.

Building surveyor’s contract The building surveyor’s contract with the builder commenced with a 2007 fee proposal it sent to a company associated with the owners. In its fee proposal, the surveyor said it would assess “compliance with the performance requirements of the technical aspects of the BCA”. The services to be provided included a “system based assessment in accordance with the objectives, functional statements and performance requirements of the BCA…Approve fire engineering report…Review architectural, structural and services documentation for compliance with BCA”.

The parties agreed this proposal governed the services provided until a formal consultancy agreement was negotiated in early 2010. The consultancy agreement incorporated the AS4122-2000 general conditions for the engagement of consultants. The conditions of contract are extensive, and we only mention a few of the high points in what follows.

These conditions of contract require the consultant to perform the services to the “standard of care and skill to be expected of a consultant who regularly acts in the capacity in which the consultant is engaged” and to comply with all legislative requirements (including therefore the BCA) when carrying out the services. The terms include an express indemnity under which the consultant agrees to indemnify the other party against claims for loss or damage to any other property arising out of or in consequence of carrying out the services. The consultant accepted all design risk and liability in the contract material it prepared, whether prepared before or after the date of the contract.

The contract included a provision allowing for its novation to the builder. That novation occurred, effectively making the builder a party to the contract with the surveyor.

The architect’s contract The architect was involved in the project from the earliest stages. Its early engagement was formalised in a “Client & Architect Agreement” in June 2007. Subsequently, in August 2010, it entered into a consultancy agreement in much the same terms as the surveyor’s agreement, that is, based on an AS4122-2000 contract.

The fire engineer’s contract The fire engineer was originally approached by the architect and subsequently entered into a consultancy agreement in similar terms to those of the surveyor and architect, that is, based on the AS4122-2000 contract.

The good contract management of the builder in negotiating clear terms of agreement with each of its professional advisers was a considerable factor in the outcome of the case.

Interpreting the BCA As mentioned above, two possible exclusions have been relied upon as a basis of using ACP cladding as a DTS solution under the BCA. The Clause C1.12 exclusion Clause 1.12 of the BCA allowed for the use of combustible bonded laminated materials where— (i) each laminate is non-combustible; and (ii) each adhesive layer does not exceed 1 mm in thickness; and (iii) the total thickness of the adhesive layers does not exceed 2 mm; and (iv) the Spread-of-Flame Index and the Smoke Developed Index of the laminated material as a whole does not exceed 0 and 3 respectively.

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In support of his contention that the use of ACP cladding was a DTS solution, the fire engineer in the Lacrosse case said that the word “laminate” in clause 1.12(i) could only be capable of three meanings: 1. a single product which is comprised of layers bonded together; 2. as a synonym for each of the layers of the bonded product containing many layers; and 3. the external layer used to cover another material in the process of lamination (being the application of a protective layer to a material).

The fire engineer argued that the third of these was the only correct meaning. On that basis, said the engineer, the laminate was non-combustible and the exclusion offered by clause 1.12 applied. This meant that the use of ACP was a DTS solution under the BCA. Woodward J disagreed as to the conclusion but agreed that the first possible meaning should be rejected. He said “laminate” in C1.12(f)(i) “cannot, as a matter of construction, mean the same thing as “bonded laminated materials”— the part (“laminate”) must be something less than the whole (“bonded laminated materials”).”

Woodward J said the second potential meaning suggested by the fire engineer was the only correct meaning. He said: “the process of lamination that results in a “bonded laminated material” involves the binding or connecting together (relevantly, by an adhesive) of a succession (that is, two or more) of layers of one or more materials.

Having identified the composite product in those terms, followed by the word “where” (in the sense of “in which”), I consider that the immediately following expression “each laminate” can only refer to each of the bonded layers that together comprise the “bonded laminated” As to the third possible meaning contended for by the fire engineer, Woodward J said it was not a meaning consistent with any of the dictionary definitions that he listed.

Woodward J added some additional reasons for his conclusion: • Using “laminate” is to my mind a logical choice, as the singular noun describing the each of the components that have been “laminated” by being “bonded” to form the “bonded laminated material”. The term “laminae” is obscure and not an obvious choice of the singular noun for inclusion in the BCA. And while using “layer” might have left less room for debate, it does not follow that “laminate” must therefore be construed to mean something different.

• In my view, it is untenable to suggest in effect that the provisions would limit individual layers to no more than 1mm and (in the case of adhesives) to a maximum thickness of 2 mm, and ignore entirely a highly combustible layer of polyethylene with a thickness (in the case of the range of Alucobond products available in 2010 with the Virgin PE core) anywhere between 3mm and 5mm” 17

FEATURE Woodward J said the contextual and purposive approaches to interpretation that are called upon when a court interprets written material supported his view.

He said the “Functional Statements and Performance Requirements in Section C of the BCA” indicated in favour of his interpretation.

The result of this interpretation, while anticipated and perhaps predictable, is significant. The middle layer of ACP, the highly flammable “frozen petrol” polyethylene layer, had to be non-combustible for the use of ACP to be a DTS solution. Obviously, this was not the case. Therefore, ACP should never have been used as DTS external cladding in a situation such as Lacrosse.

The C2.4 exclusion One further path to a DTS solution was put forward by the fire engineer.

The relevant part of clause C2.4 of Specification C1.1 of the BCA is as follows: 2.4 Attachments not to impair fire-resistance (a) A combustible material may be used as a finish or lining to a wall or roof, or in a sign, sunscreen or blind, awning, or other attachment to a building element which has the required FRL if— (i) the material…complies with the fire hazard properties prescribed in…Clause 2 of Specification C1.10…; and (iii) it does not otherwise constitute an undue risk of fire spread via the façade of the building. (b) The attachment of a facing of finish…to a part of a building required to have an FRL must not impair the required FRL of that part.”

The expert evidence brought by the fire engineer contended that the ACP cladding was a “finish” or an “other attachment” to Lacrosse and hence was not, under the terms of clause C2.4, required to be non-combustible.

Having brought expert evidence on the point, it appears that, during the course of the trial, counsel for the fire engineer may have reconsidered the wisdom of pressing this point given his later submission in the following terms:

observed that: “It is far from clear to me how a product with formed as a result of any reasoned analysis, investigation the structure, composition and dimensions of an ACP that is or inquiry, was not reasonably based and was probably not affixed using studwork and provides both weatherproofing revisited when the building permit was issued. and acoustic benefits, can be described as a “finish”.”

The Fire Engineer The architect The fire engineer said its duty was limited to an In defence of the claims against it, the architect pointed examination of issues of non-compliance highlighted by to the detailed design obligations in the contract between the building surveyor. However, the terms of the contract the builder and the owner. The architect said that these of the fire engineer were found by the Judge to not be so clauses required the builder to check the design for limited. This finding was not withstanding the observation compliance. It noted that the preliminary design drawings of the expert witness for the fire engineer who told the it had prepared were adopted by the builder on the basis Court that he did not believe the contract could “redefine that it would be deemed the builder had undertaken those basic professional roles”. The Judge rather dismissively checks. This defence was rejected. said, “The lawyer’s response to this is, of course, yes it can.”

The architect had specified ACP and this specification made its way into the builder’s contract. The architect could not rely on specifying Alucobond and expecting the builder to choose the only non-combustible type of Alucobond known as Alucore. In any event, the builder had sent a sample of the ACP it proposed to install to the architect just prior to the installation process. The architect gave its approval, apparently focusing to some extent on the colour of the sample and whether the material met the warranty requirements of the specification. This chain of events was enough for the Judge to regard the architect as having breached its contract by giving its approval to the use of ACP on the building.

The building surveyor The decision goes into considerable detail in analysing the role and function of a building surveyor or certifier.

The comments of the Judge require detailed consideration beyond the scope of this article and will be the subject of future discussion. However, building certifiers should note the Judge has made it clear their role is to interpret the NCC and did not accept that this is “difficult for a competent professional building surveyor”. The Judge accepted the surveyor, when issuing the permission to build, had probably held an opinion that ACP cladding was a suitable material to install based on its interpretation of Clause C1:12(f). However, the Judge found that the surveyor’s opinion as to the construction of Clause C1:12(f) was not

The contracts and industry practice It is apparent from the reasons, that each of the professional advisers to the builder failed to understand the breadth of the obligations they had undertaken when they entered in to their contracts. Each of them had failed to adequately investigate the combustible nature of ACP and the developing world-wide concern as to its use.

The Judge noted the use of standard forms and “boilerplate” language without attention being paid to the actual meaning of the words. The Judge observed: “It is often the case that diligent and competent professionals blithely reuse standard documents that have served them well over the years, focusing only on those parts that need to be tailored to each job. It is only when something goes wrong and the lawyers become involved, that any real attention is given to how that boilerplate language informs potential liability.”

Conclusion Any decision of this nature is reliant upon the facts of the case. In relation to the interpretation of the BCA, the manner in which the ACP was fixed to the building and the substrate behind the ACP will potentially impact on that interpretation. However, the principles of interpretation as set out by Judge Woodward are instructive and likely to assist in clarifying liabilities in other circumstances.

“with hindsight and despite the subjective element in C2.4(a)(iii)” the Alucobond Specification clearly did constitute an “undue risk of fire via the façade of the building … It follows that C2.4 of Specification C1.1 did not provide, in fact, a pathway for the use of Alucobond (PE) in 2011 as complying with the BCA” Woodward J, for the sake of completeness, dealt with the expert evidence by describing it as “generally superficial and unconvincing”. He rejected the conclusion that the ACP could be considered a “finish” noting the reference in C1.10 to “a paint, varnish, lacquer or similar finish…”. It is a principle of interpretation, that the meaning of a word, derived from its use in context in a document, is to be given the same meaning, when used elsewhere in the document.

Given this principle, it is not surprising Woodward J 18

SA BUILDER WINTER 2019

Judge Woodward found that the use of ACP cladding on Lacrosse was a breach of the DTS provisions of the BCA. On that basis, the builder was in breach of its obligations to the owners of the apartments in Lacrosse and was primarily liable for 100 per cent of the compensation required. That compensation extended to increased insurance premiums, temporary accommodation, cost of rectification of the damage, and the cost of recladding the undamaged parts of the building with a compliant form of cladding.

However, His Honour said the builder, whose director gave evidence that he had no inkling as to the dangers posed by using ACP, had taken reasonable care when it relied on its professional advisers. On that basis, the builder was entitled to be reimbursed by them and by Jean Francois, whose cigarette caused the fire. Ultimately, liability for the fire was therefore distributed to each of them in the following proportions: • Fire Engineer – 39 per cent • Building Certifier – 33 per cent • Architect – 25 per cent • Jean Francois – 3 per cent Perhaps somewhat wryly, His Honour observed that the amount attributed to Jean Francois is likely to have to be paid by the builder. The builder is entitled to reimbursement from each of the professional advisers but primarily liable for the full amount.

Where to from here?

If the view of the writer, this interpretation, if left undisturbed by any higher Court, has very significant ramifications for the property and construction industry in Australia. In effect, the decision may be said to mean that the central layer of any form of ACP used as external cladding on a type A building must be non-combustible if analysed as a DTS solution. The Neo 200 fire shows that only minor amounts of cladding can give rise to serious consequences.

In March 2018, SA introduced new regulations governing the installation of ACP requiring specific notification and information as to the performance-based analysis enabling its installation. Further reform is likely. The decision is already having a significant impact on the insurance market, with premiums increasing and a shrinking appetite for the provision of insurance in respect of external cladding design.

In relation to existing type A buildings clad with ACP, the case raises serious issues as to the safety of their occupiers, their market value, owners’ obligations to disclose the existence of ACP cladding when renting and selling, and the liability of bodies corporate and owners to tenants. Contractors who have completed buildings of this type within the last 10 years should notify their insurers and seek advice as to exposure. Victoria, NSW and Queensland have already commenced legislative reform on this issue and registers listing affected buildings are now being compiled.

In relation to buildings under construction or planned, amendments to the NCC and the outcome of this case makes it clear that ACP should not be used as a DTS solution for external cladding on a type A building.

Author

Tom Grace, Partner, Fenwick Elliott Grace Construction and Engineering Lawyers

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FEATURE

Have you got the right license?

The requirement for builders and tradespeople to be licensed helps to protect consumers from operators who don’t have the necessary skills and experience to do building work safely and competently. Licensing also has benefits for industry, by helping to maintain industry standards and allowing licensed tradespersons to distinguish themselves from unlicensed competition.

to cease the unlicensed activity. But in other cases, the appropriate course of action may be: • Public warning not to deal with the trader; • Seeking a written assurance; • Issuing an expiation notice; • Disciplinary action; or • Court action.

There are licensing requirements for a broad variety of building work, including non-structural and subcontract work. Details of the most common licence types are on the Standard Conditions List which is available on the Consumer and Business Services (CBS) website at www.cbs.sa.gov.au. It is an offence to contract for building work if you are not licensed, and it is also an offence to work outside the scope of your licence.

If you don’t have the right licence, you risk a maximum fine of $50,000 for an individual or $250,000 for a company. For three or more offences the maximum penalty for an individual is 12 months jail or $50,000 or both.

CBS has a proactive monitoring program, conducting licence checks on building sites and also monitoring websites and advertisements. CBS also receives reports from builders and from consumers when things have gone wrong with a job or when consumers suspect that a person who has quoted for work is not licensed.

Penalties When unlicensed activity is detected CBS will consider a range of factors in determining what action should be taken. For example, CBS will consider the number of clients affected, potential safety risks and any previous breaches. In some cases, a warning letter will suffice for the person to either apply to be correctly licensed or 20

As an example, in one recent case, a tiler who operated outside of his licence and performed poor-quality bathroom renovations was fined $11,840 and ordered to pay $5,500 in compensation.

Expanding the scope of your work If you want to expand the types of building jobs that your business can offer to clients, make sure you are appropriately licensed before you contract for work, and even before you advertise for that work. It is an offence to give people the impression you can take on certain work if you aren’t actually licensed for that work.

Once you have the required licence you can start promoting your services. Remember to include your licence number in any advertising or promotion.

Subcontracting out work If you have a number of big jobs on the go and need to subcontract out some of the work, make sure you only engage a licensed subcontractor.

You should also check that: • The subbie has a good track record of providing quality work and good customer service. You will ultimately be responsible for remedying any breaches, because the customer’s contract is directly with you, and not with the subcontractor.

• The work is properly supervised by a registered building work supervisor.

Digital licences Builders and tradespeople can choose whether to hold a plastic licence card and/or a digital licence. You can download your licence to a smartphone or tablet using the mySA GOV app – visit my.sa.gov.au. Both hard copy and digital licences can be scanned and verified by CBS compliance and enforcement officers.

For more information about licensing requirements please visit sa.gov.au/topics/ business-and-trade.

For any licensing queries please contact Consumer and Business Services via occupational@sa.gov.au or phone 131 882.

SA BUILDER WINTER 2019

FEATURE

Elevating design quality Every new development has the potential to improve our quality of life, stimulate the economy and enhance the environment. Each year local and state planning authorities across the state see thousands of new proposals, which have the power to do just that by elevating design quality.

We face a historically significant change in the pattern of settlement in metropolitan Adelaide, where, for the first time in three generations, we’re seeing a renewal of our inner-city suburbs and the city’s core. This change is a key opportunity for us to articulate what we mean by design quality.

Good design and design quality is a lofty aspiration. It is about many things, not one; and must be understood from the outset.

Good design is about function and the usefulness of a proposal. It is about the sense of renewal, about endurance. It is also about affordability, aesthetics and beauty. It should also be about creativity and innovation, as well as both existing and future identity and a whole lot of other things as well.

Articulating what gives our buildings and places a particular character or personality has be-devilled designers, planners, theorists and elected officials over many decades.

Some of this can be reflected in areas in which we can easily control. The public realm is an obvious place to start—it all lasts for a very long time. Eighty per cent of the public realm is made-up of streets, making them incredibly important.

The State Planning Commission has recently released A Community Guide to Design in our new Planning System, in collaboration with the Office for Design and Architecture South Australia and a panel of design, planning and project delivery experts who have explored this important topic.

The Planning, Development and Infrastructure Act 2016 places a particular emphasis on design quality. So, what difference will this make?

In this guide, we have tried to express our aspirations in the principles contained in the paper which are now embedded in the new planning system, which we hope will contribute to a new level of informed debate.

Planning is not about short-term gain, it is about playing the long game. This means setting-out for everyone the frameworks, policies and references through which we can provide guidance and certainty, reflecting community aspirations.

The guide calls upon planning and design professionals, state and local governments as well the community at large to join us in playing a greater role in elevating design quality across our built environments.

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The importance of good design in residential dwellings cannot be underestimated. How people feel about their neighbourhood is directly related to the interface between private and public space.

Good design improves the way our buildings, streets and places work making them more sustainable, more accessible, safer and healthier. The inclusion of natural light and ventilation, building orientation to reduce heat, and access to open, walkable spaces are essential in creating places in which communities can grow and prosper.

To access a copy of the guide visit: www.saplanningportal.sa.gov.au.

Author

Michael Lennon, Chair State Planning Commission

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FEATURE

Waterproofing One of the most common issues we see at MBA Insurance Services (MBAIS) continues to be related to ineffective waterproofing. While, ultimately, the majority of the costs associated with defective waterproofing can be covered through the builder having the right Contract Works and Liability policy, there are several straightforward initiatives that can either help reduce the likelihood of water damage occurring, or help you avoid covering the cost when it does.

Choosing the right waterproofing subcontractor can go a long way to avoiding losses altogether. Partnering with quality-focussed waterproofers, with a track record of getting it done right, is critically important. While business needs will often dictate going outside your normal panel of subcontractors, we would suggest the below steps to ensure you’re selecting the right waterproofer.

• Consider using a well-established waterproofer who has been in business for a number of years. If this isn’t possible, the following steps are even more important.

• Obtain references or recommendations from other builders.

• Request that the waterproofer provide you with an overview of their expertise and experience in performing the type of work involved.

• Further increase your own knowledge of waterproofing by attending the Master Builders training course ‘Waterproof Training for the Construction Industry’, which will provide a practical, common-sense approach to utilising and applying the Australian Standards.

• Request a copy of their liability insurance certificate of currency, to ensure they are properly insured. Also note the policy renewal date, and request an updated copy of their insurance once renewed. Under section 134 of the Building Act 1993, a builder and subcontractors are liable for building defects for up to 10 years. With waterproofing defects very likely to result in insurable damage, ensuring your subcontractors maintain cover is important.

Even when implementing the above measures, issues can still occur. If you receive notice of a water damage problem from a client for whom you’ve built previously, you should look to engage the waterproofer who completed the job to claim on their policy where possible. While your Contract Works and Liability policy will likely provide protection and an element of control in managing the claim, the most economical approach is 22

to request that the waterproofer lodge a claim on their policy rather than on your own. Having claims losses generally results in higher premiums and if frequent, potential conditions or exclusions to those losses down the track.

MBAIS encourages you to seek claim costs through your subcontractor’s policy whenever possible. You should avoid any admission of liability, but manage the client’s expectation by ensuring they understand that you are working with the subcontractor involved to resolve their concern.

From a risk-management standpoint and to protect your business from uninsured losses, you should ensure you have a strong Contract Works and Liability policy managed by a specialist construction insurance broker. Unfortunately, many Contract Works and Liability policies completely exclude this type of loss, deeming that any damage to your construction projects caused by a defect in your project is not covered, as there is no third-party property damage. Broader policy coverage is currently available which provides cover for the resultant damage, but not the defect. How this typically works is that the water damage is covered, but the cost of rectifying the waterproofing is not insured, as it is deemed to be the defect.

To discuss the risk management processes you have in place to manage subcontractor liability or to check to see if your Contract Works and Liability policy provides the right level of cover, contact MBA Insurance Services on (08) 8461 8288.

Author

Candice Klau, Business Development Executive, MBA Insurance Services Pty Ltd. SA BUILDER WINTER 2019

FEATURE

Building dreams with Finesse Built and Little Heroes

Finesse Built Director, Matt Beckwith, became involved with the Little Heroes Foundation and recognised the need for another major fundraising opportunity for the organisation. So, he set off to see what his amazing network of friends and business associates could do.

Neuroblastoma almost two years ago. As you can imagine, Madison and her parents Monique and Simon O'Donohue and older brother Levi had their entire world turned upside down as they prepared to face the unthinkable journey ahead.

After an overwhelming response, and after receiving generous donations and support from many labourers, suppliers and tradesman, the result was an incredible Finesse Built home, fondly referred to as the ‘Little Heroes building dreams home’.

During this incredibly difficult time the Little Heroes Foundation stepped in to help the family with the day-to-day running of the home, offering support with cleaners, gardeners, car parking at the hospital and arranging payment of some bills.

This home is very special not only because it was built by multi-award-winning Master Builder Finesse Built, but also because it was built for a very special purpose.

The stunning ‘building dreams’ home was built to benefit the ongoing, and much needed work of the little Heroes Foundation, which helps seriously ill children and their families through incredibly difficult times.

The support offered by the Little Heroes Care Program helps take some much-needed pressure off the families during this time and we are very happy to report that Madison is now doing well and enjoying life as a vibrant and bubbly little girl.

This beautiful home in the seaside suburb of Somerton Park has now been SOLD. The lucky new owners not only have a stunning new home to enjoy, they have also helped support the Little Heroes Foundation, with the proceeds of the sale benefitting their amazing work.

Matt and the team from Finesse Built would like to thank everyone that has kindly supported the building dreams project which will benefit such a worthy cause.

The money from the sale will continue to help children just like Madison, the adorable four-year-old girl who was diagnosed with an aggressive cancer known as WWW.MBASA.COM.AU

Madison will continue to have regular monthly check-ups to ensure she continues to stay healthy and happy.

“Matt’s dedication to this excellent cause is a credit to himself and Finesse Built,” said Master Builders SA CEO Ian Markos. “The way so many rallied around him was really inspiring and a reminder of how great the people in our industry truly are.”

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FEATURE

Critical insolvency protection available if you know where to look Introduced in 2012, the Personal Property Securities Act (PPSA) finally provided suppliers of materials and subcontractors (who also supply materials) with protection from the insolvency of their customers but so few suppliers/subbies are even aware of this some seven years later.

Is it expensive? No. You can protect yourself for a Government charge of $6 per customer, providing protection for every transaction with the customer for the next seven years, less than $1 per year per customer.

Is it complicated? It can be. Unfortunately, it’s not a DIY exercise and you will need some initial guidance (but isn’t this true of everything – remember learning to ride a bike).

So why isn’t every supplier and subcontractor complying with the PPSA? Good question. Simon Read from PPSAdvisory has provided his thoughts.

With over 30 years’ experience as an insolvency practitioner, and having run his own PPSA exclusive advisory business since 2010, Simon is one of only a handful of national experts on the practical application of this law.

“One of the reasons for the introduction of the PPSA was to level the playing field between secured and unsecured creditors. In a history of more than 30 years and hundreds of insolvencies, I know of only one case where unsecured creditors received all their money back. In most cases, unsecured creditors receive nothing or very little, whilst secured creditors often recover everything.

“Well, the PPSA can change all of this and for suppliers who do comply, the results can be fantastic. Suppliers of materials can take security over the goods they supply the customer. They will have the highest and best claim over those goods, better even than the traditional secured creditors, the banks.

“I must point out, the PPSA is not a ‘silver bullet’, it does not solve every customer’s insolvency but for the cost, it’s better to have some ‘ammunition’ than none when fighting the liquidator.

“The problem is no-one has clearly explained how the PPSA operates. Perhaps some real life (names have been changed) examples will help.

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The 2018 collapse of D&A Constructions caused a great deal of concern for almost $12m of unsecured creditors.

“For one of our clients however, the story was very different. Their 2015 PPS registration over D&A meant they had security over the materials they had delivered but for which, they had not received payment.

“The PPS client was able to recover their materials still on site (but not yet installed) as well as the value of the materials used by the liquidators.

“And last, but by no means least, the PPSA extends the client’s security to cover the ‘proceeds’ arising from the use of their materials by D&A. In this case D&A were providing construction services to their customer. When D&A collapsed the project was incomplete and the customer owed D&A progress claims.

“When the customer ultimately paid the liquidators the progress payment, some of those monies were in respect to the materials supplied initially by our client. Accordingly, our client had the highest and best security over those monies and the liquidator forwarded those monies to our client.

“All in all, our client recovered over 70 cents in the dollar of their $180k exposure, and our client will continue to participate in any further dividends the liquidator may declare for unsecured creditors.

The difference between our client and the other unsecured creditors? An enforceable security interest created by the $6 PPS registration. It is this notion of proceeds, which is so important. Suppliers of materials can only recover the actual goods before they become a fixture to land or buildings. Once a fixture, the goods cannot be removed and the supplier’s security over the goods is lost but is ‘replaced’ by security over their proceeds.

Another example, Southern Hardware had been supplying their customer, a ceiling installer, with Gyprock for many years and the installers financial collapse was a surprise.

As a client, we had performed Southern Hardware’s PPS registration over the installer several years ago. It became clear the Gyprock supplied had been installed, so our client had lost security over the Gyprock and had no ability to physically recover it.

SA BUILDER WINTER 2019

In a recent high-profile builder’s insolvency in WA, I understand the administrators charged and recovered more than $3m in fees. Where did this come from? Without doubt a large amount came from the recovery of outstanding progress claims, which should have been claimed by PPSA complying suppliers. Again, no PPSA complying suppliers.

So, what is the ‘takeout’ from all of this: • The PPSA is here to help protect unsecured creditors from the insolvency of their customers, but is not widely used.

• It’s cheap and once understood, relatively easy to apply.

• It’s fantastic news for all suppliers of goods and materials but so few are bothering to comply.

In my very strong view, if you supply goods and materials on credit terms you must comply with the PPSA. I can’t think of a sensible argument not to.

Further Information: www.ppsadvisory.com.au

However, our client also has security over any proceeds arising from the use of the Gyprock they supplied. In this case, the installer had recently completed the job in which Southern Hardware’s materials had been used. And the end customer still owed the installer progress claims (including monies for Southern Hardware’s materials).

Author

Simon Read, PPS Advisory

The installer’s liquidator recovered the progress claim, and as required by the PPSA, paid Southern Hardware the proportion of the claim relating specifically to the Gyprock, Southern had supplied.

In this example, our client recovered all of the debt they were owed. Other unsecured creditors did not recover anything. The difference, a $6 PPS registration.

Now the issue is the timing of the builder’s collapse. If you supplied materials three months prior to the builder’s collapse and the builder has received payment from the customer, you have no security and remain an unsecured creditor. But you’ll never know when a builder is going to collapse.

In this situation you wasted your $6 registration fee, not a big deal. And the PPSA is not something you can choose to apply when you become aware of a builder’s immanent collapse. It’s critical you perform your PPS registration over your customer before you supply any materials. The vast majority of our clients elect to register against every existing customer and new ones as they come on board. Once registered, every transaction with the customer for the next seven years is covered, a ‘set and forget’ policy.

And consider this. In the majority of major builder’s insolvencies, there is some financial recovery of outstanding progress payments from the builder’s customers. It stands to reason these monies have to represent proceeds for some material suppliers. The money is literally sitting there, available for suppliers and subcontractors, but because few bother to comply with the PPSA the money continues to flow to the insolvency practitioners and secured creditors. It’s madness.

I know of one builder’s collapse where a large customer withheld over $500k in outstanding progress claims, from the administrators. The customer sought out any valid claim from suppliers and subcontractors but because none had bothered to comply with the PPSA none had a claim against these proceeds and all the money went to the administrators. What a waste.

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FEATURE

The environmental impact of creation God seeks council approval for His development proposal.

In the beginning God floated the idea of creating Heaven and Earth. He was immediately served with an injunction

by Greenpeace to prevent any creative activity whatsoever as He had not undertaken an environmental impact study, had no permit to work and had no social licence.

At the court hearing, God was cross-examined and asked why He wanted to undertake this massive project unless, of course, the entitled could benefit from His venture. The Wilderness Society reminded God that His Bible stated that ‘the earth was void and empty and darkness was upon the face of the deep’ hence the area where He wanted to creatively meddle could be classified as a pristine wilderness in the Universe.

God successfully argued that, unless Earth could be seen, then it could not be classified a wilderness area. Upon further questioning, God revealed that by Him saying ‘Let there be light’ the wilderness area could be seen for assessment of its environmental value.

Pandemonium erupted in the court house.

How could God create light without burning something that would pollute the Universe? Had He considered the smoke, thermal and optical pollution that His creation of light would produce? What would be mined to produce all this energy? Would the mining be underground or open pit? Was this mining safe and did it exploit indigenous people? Would mining make a profit? What was God to do with the tailings and the waste? Was mining to be conducted by workers’ communes or faceless corporations? Was God aware of the dangers of greenhouse gases and nuclear energy?

In order to seek compromise, God argued that He would create a pollution-free, thermonuclear powerhouse a long way from Earth. However, at the mention of nuclear, the masses in court broke into histrionics. God faced aggressive questioning from the assembled environmental movements. Would His giant thermonuclear power generator really work? Could the safety of thermonuclear fusion be guaranteed? What about Chernobyl?

In order to allow His creative proposal to proceed, God suggested that instead of thermonuclear energy, He would create solar energy. A warm inner glow entered the hearts of those in the courthouse; the assembled 26

detractors agreed that solar power would be far better environmentally than thermonuclear power and some of the more sensitive souls were so touched by God’s environmental concern that they actually wanted to shake His hand.

The unions insisted that if God created solar power, then He must also create wind so that their union superannuation funds could skin the public alive with their subsidised inefficient wind turbines. God reluctantly agreed in order to proceed with His creative process.

Some wanted an Earth Month until it was realised that there would be no food. A compromise was made and Earth Hour was proposed. This was when wealthy consumers could feel morally superior with no sacrifice or knowledge and a time when they could hypocritically emit more CO2. The Earth Hour advocates argued that darkness was symbolic but God resisted stating that the symbolism was a political, moral and intellectual darkness.

Wouldn’t precious energy be wasted if light was emitted from the Sun all the time? In order to conserve energy, God suggested that He divide light and darkness and He would call the light Day and the darkness Night.

The assembled environmental masses seemed to think that this was an inspired energy-saving proposal and grudgingly acquiesced to this creative step.

However, the next creative step aired had God in a spot of bother. When God was asked how the Earth would be covered, He answered ‘Let there be a firmament made amidst the waters; and let it divide the waters from the waters’. Greenpeace, the Australian Conservation Foundation, Friends of the Earth, the Greens and miscellaneous other eco- movements voiced strong objections. If God created a firmament, would not the mining industry pillage the firmament for minerals?

God tried logic and argued that a firmament was necessary in order to produce the 210 tonnes per capita per annum of water, food, fibre and minerals that would be consumed by each Western person at the end of the

second millennium AD. The gag was applied, the court adjourned and God was refused permission to continue argument about the firmament.

After the adjournment, God was given permission to make a short statement. He stated that homelands and sacred sites could not be annexed unless there was a firmament.

After much discussion in court about the necessary provision of homelands for the tangible expression of guilt and the growth of the guilt industry, God was given permission to create a firmament and questioning shifted to His creation of waters.

Neither Greenpeace nor Friends of the Reef wanted God to create the oceans because this would tempt the petroleum industry into offshore drilling. Furthermore, if there were oceans, then there could be marine pollution, fishing and people enjoying themselves with water sports. To make matters even worse, international waters could not be regulated and controlled by the Greens.

It suddenly dawned on God that logic was His worst defence, and He started to invent arguments that would seem plausible to ideologues. Rather than discuss the necessity of oceans for climate, resources and survival, God insisted that His creative venture must have oceans.

Without oceans, God stated, there would be no habitat for dolphins, dugongs, whales and coral reefs. The court room exploded into cheers, people struggled to pat God on the back, environmental leaders announced that the god of nature would now be called Gaia, God signed numerous autographs and a warm ambience settled over the tearful masses. However, because so few at the hearing had trust in God, He was instructed to apply for the numerous necessary permits from the appropriate local government, shipping, agriculture, water and international commissions before undertaking this step.

When God tried to explain that the barren firmament should be enhanced with vegetation, there was vigorous objection on the basis that the flora might be exploited commercially for profit. God was now aware that it was SA BUILDER WINTER 2019

pointless to argue that flora would be the key to survival on Earth, that flora uses CO2 as plant food and that flora emits oxygen, so He stated that He would only create species native to planet Earth. He strengthened his argument by suggesting that if the firmament was covered by abundant vegetation, all could be vegetarian. The vegans tried to cheer but just didn’t have the energy.

Act, Fisheries Act and observed the RSPCA regulations, God was given permission to say ‘Let the waters bring forth abundantly the moving creature that hath life, and the fowl that may fly above the earth’.

The proposal to create Man met insurmountable ethical and political difficulties. The vivisectionists were concerned about the morals of rib transplant on a God’s popularity was increasing and the environmental sleeping patient without the required documentation, leaders now privately felt that God was good, however they the Womens’ Electoral Lobby and the Lesbian Gender were committed to objecting in public to every creative Equality Sisterhood would not agree that Man was to step by God in order to keep donations flowing. It was be created before Woman, animal liberationists were eventually agreed, subject to Noxious Weed Board and incensed that Man was to have dominance over animals, Forestry Commission permission, that if God vegetated the gay lobby did not want Woman created from Man, the the planet with only native species then He would be Human Rights Commissioners argued that rib tissue had issued with a permit. inalienable rights and ASIO insisted that those created must first have security clearances. God was secretly In order to win over new age movements, astrologers and pleased because, during these lengthy, evidence-free UFO watchers, God announced to the court that He wanted emotional arguments, God had written some basic to state ‘And let there be lights in the firmament of the economics into His book. God now was sure that activists, heaven to give light upon the earth’. The new age movements Communists and the Left don’t read books and can only were asked to voice their objections. Because their answers chant ideology. He created commodities (gold; Gen. 2:12) required the use of words of more than two syllables, they and the market (women; Gen. 2:23) and no one noticed. If could only look bleary-eyed at God, monotonously chant his green opponents actually read books, there would have ‘God is Cool’ and fondle His long flowing robes. been uproar at God creating a capitalist system.

Some disquiet was expressed in court about God’s plan to have only native flora without soft, cuddly environmentally sensitive fauna. A robust discussion ensued with some suggesting that if there were animals on the firmament then they would be hunted, killed and eaten whereas others wanted soft cuddly objects to allow them to have publicity about the plight of these animals.

The question of methane emissions from animals was raised. It was unanimously agreed, that in the absence of evidence, methane emissions were bad. A compromise was struck. If God could create sheep and cattle that had the choice of emitting methane, then wild animals could democratically decide whether they chose to emit methane or not. The gathered masses felt good. On the condition that God adhered to the various statutes of the Native Flora and Fauna Protection Act, National Parks WWW.MBASA.COM.AU

God now had the measure of his opponents and announced to the court that He would only create indigenous people. Opposition evaporated, there were excited suggestions about having many special days dedicated to indigenous people and, after no thought, it was decided that if these matters were aired at a subsequent public hearing, then God may be given permission afterwards to say ‘Let us make Man in our image, after our likeness: and let him have dominion over the fish of the sea, and over the fowl of the air, and over the cattle, and over all the earth’. Despite the onerous conditions laid down by the court, God was willing to adhere to all these conditions.

God only had to abide by 96,213 approvals and regulations to be administered by Green politicians. However, at the end

of the hearing, He was asked when He hoped to complete His creative project. Great consternation arose when God said ‘In six days’. The unions would not agree, too many people would have to work too fast to an exacting deadline.

This was unprecedented compared with all previous attempts at productive creativity that had been prevented by prolonged industrial action. God was advised that the EIS and necessary permits have an application period of 90 days followed by a public viewing period of 60 days in each capital city. Upon receipt of all of the information, the granting bodies required a minimum of 180 days to review the applications prior to the public hearing. If there were no appeals arising from the public hearing, the process would take at least 36 months from the time of application before God was permitted to commence His creative venture. If there were appeals, it could take up to 10 years before God could be given permission.

God became positively catatonic. To His horror, God suddenly realised that He had only concentrated on creation of the Heavens and Earth and had forgotten to create the rarest commodity on Earth: common sense.

The irrational unproductive constraints of the regulatory processes were such that it was just not possible for God to create Earth in the proposed six-day period.

God fulminated in disgust ‘To Hell with My Project!’ and Earth, as we know it, was created.

Author

By Ian Plimer, Emeritus Professor Ian Plimer is a director of a number of listed and unlisted companies 27

HEALTH

Constructing better mental health in the building trades

Almost half of all Australian men will have a mental health problem at some point in their life and one in eight will experience depression. When you consider that the rate of suicide among men in the construction industry, especially lower-skilled employees is approximately double that of the general male working population, it is easy to see why construction workplaces need to have a focus on mental wellbeing.

With a recent focus on promoting a healthy body and healthy mind, AccessEAP is pro-actively building awareness in some of the more male orientated workplaces where mental health issues are prominent.

“Talking about problems and taking action are proven ways for male construction workers to stay mentally healthy, but it’s still difficult to get them to take that all important first step,” explains Marcela Slepica, Clinical Services Director at AccessEAP. “Often in male dominated industries, the macho mentality still exists where men are afraid to show weakness, sadness or vulnerability. If men don’t feel like they can open up, it can have a detrimental effect on their mental wellbeing. Apprentices in construction are two and a half times more likely to suicide than other young men their age.”

Toolbox talks In an effort to raise mental health awareness AccessEAP has introduced toolbox talks.

These sessions focus on increasing awareness of mental health issues and helping men to understand that at some point most people need help and that help is available.

Eleni van Delft, Director, Relationship Management at AccessEAP has already provided tailored toolbox talks to organisations in the manufacturing, mining and construction industries and is amazed by the immediate effect it has had on participants. “Often at the beginning of a session, we struggle to get men to talk but by the end, they can be reluctant to leave and I’ve witnessed large scale discussion amongst participants about issues that may be affecting them in their personal or work life long after the session has ended. The toolbox talks are not only helping men to reach out for help, but also show them their organisation cares about them and values their wellbeing.”

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Men’s priorities tend to change with age and with that come work commitments, longer hours and the possibility of family commitments. It is often difficult to keep in touch with friends and invest time in hobbies, which can lead to a lack of social connection. Without someone to talk to about the demands of a stressful job, long hours or family troubles, these everyday stresses can develop into something much more serious.

Managers and employees need to be educated on the behaviours that may indicate a colleague is going through a tough time and learn ways to encourage them to seek help if there is concern for their welfare.

Here, AccessEAP offers some tips to help men reach out in times of need: • Seeking help is positive for your mental health. It is not a sign of weakness • The best health is achieved with looking after both your physical and mental health • Make self-care a priority and set goals for sleep, exercise and “me” time • Maintain social contact and keep in touch with friends and family • Equip yourself with the tools and strategies you need to cope with challenging life events. Start with your EAP and a confidential appointment.

For more information please visit www.accesseap.com.au.

About AccessEAP AccessEAP is a leading Employee Assistance Program (EAP) provider in Australia. We have been assisting companies across Australia, New Zealand and South East Asia since 1989 in supporting a mentally healthy workplace. As an Australian owned not-for-profit provider, surplus profits are directed into programs to assist children at risk in the community through direct donation and via The Curran Access Children’s Foundation.

SA BUILDER WINTER 2019

HEALTH

Working together for public health By working closely with industry, including the peak industry organisations, we can ensure South Australian’s drinking water supply remains safe during the building process.

Talking with people from across the housing industry, as well as our customers, coupled with research, shows the most cost-effective way to guarantee a safe drinking water supply is to install water meters after the main has been disinfected and before a Certificate of Practical Completion is issued for greenfield and major developments.

To deliver safe drinking water to our customers, all meters contain a backflow prevention device to prevent contaminants from entering the mains water supply network. Each 20mm meter is supplied with a security collar to lock the meter onto the inlet riser with a security pin attached to the isolation valve. We remove the pin when requested by the property owner or builder while the collar remains in place as a fixture of the meter.

WWW.MBASA.COM.AU

Activating a meter is very simple and you can lodge a request online at SA Water Connection Application Form.

More than 300 meters are now fitted with the antitamper devices and we continue to roll them out at new developments.

Removing or altering water meters compromises the safety of everyone’s drinking water supply and that’s the reason why penalties apply.

We appreciate the assistance of various industry organisations and its members in helping ensure everyone’s drinking water supply remains safe.

For more details about the safe installation of water meters please contact the Land Development Team on majorld@sawater.com.au

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INDUSTRIAL RELATIONS

Composing a career in the building industry I recently visited the University of South Australia City West campus and two things came to mind. The first was how good the university buildings look with a different colour scheme, and the second was a wave of memories from my youth (in the late nineties I completed a Bachelor of Architecture through the institution).

I remembered how little responsibility I had back then compared to now, as well as all the fun that went with a university lifestyle. I also remembered other feelings I had, like uncertainty and fear. Coming from the country to the city, I was not confident the decision to study was the right one. I was happy with my move to the “Big smoke”; this was something I had planned for a number of years. However, it was the degree I was unsure about.

Did I really want to become an architect? Was it really my thing? Would there be work for me once I completed my course? My doubts were not helped when my first lecturer told a room full of students that only a handful of us would become fully fledged architects. Thankfully, twenty years on, I look back and am glad I had the courage to follow my gut instinct. Although I did not pursue my initial dream of working as an architect, I did go on to become a building surveyor.

My trip down nostalgia lane also made me reflect on how bumpy the road had been at times, both during my education and also my professional career. The initial doubts I had during my university days lingered with me even through my early professional career. I had accumulated a lot of hard, working hours and confronted a variety of difficult people. However, despite the twists and turns, there was one question that kept me motivated and focused on the big picture, “what’s next for me?” It is a question I still ask myself today; referring to it helps me analyse my current position and determine my next move i.e. what do I want to achieve?

Career paths can mean different things to different people. My father, for example, spent 38 years at the same company. He was more than content with his job.

For others, like myself, variety is important. Luckily for me, architecture was not my only option as a career. The building industry in general offers a lot of diverse jobs and career pathways. Although my first lecturer provided a dim (but ultimately factual) prognosis of the future, his statement did open my eyes to consider other careers within the building industry. It inspired me to further my studies and keep my mind open to alternative career 30

possibilities. Now that I find myself being in the shoes of the lecturer helping others, I strongly encourage people to further their studies to get the best out of themselves.

Education has helped me answering the question “what’s next” and will most likely help me in the future.

So, what are the advantages of more education? Below are some key points I have experienced myself and observed from other building professionals that may assist your career in the building industry.

1) Have a ‘Plan B’…

I have lectured many students, both young and old. One common reason for people furthering their studies is to ensure they have a ‘Plan B’. Some people feel more secure knowing there is a potential alternative should things not work out in their current job. Others understand that jobs in the building industry are physically taxing on the body.

For those who cannot keep up with the physical demands of onsite work, they are inspired to find work suited to their current condition of health. Hence, education is used as a tool to broaden their resume.

2) Enjoy what you do Many jobs are repetitive, the scope of the job itself does not change from day to day. For some this is fine; they can be motivated by obtaining a good income, being in charge of a business or are just happy to be part of a productive working environment. For others, however, it can be monotonous. Some people are motivated by change, something I can personally associate with. Your mind, like your body, can tell you a change is needed. Education can be used as a tool to change jobs.

3) Obtain as much knowledge about the industry as you can People who work in the building game understand it is an industry that is highly legislated. Other than technical ability, a building professional must also be proficient at understanding health and safety requirements for both themselves and fellow workers. A building professional may also have responsibilities to governing authorities.

Education is a key tool to be kept informed. We have all heard of the old adage, “Knowledge is power”. This is true, but just as important is the fact knowledge makes you relevant. Being in such a dynamic industry where change is ongoing, education not only helps you get an advantage in career progression, it is also critical in maintaining a competent level of output in your existing job.

In my years of being a professional I have encountered all types of working cultures and people. My roles have also been varied. I have worked in the public sector, the private sectors and gone solo working for myself. I have worn a number of hats, from the assessor to the applicant. I have drafted, consulted, certified, inspected and mediated. All this was done within the building sector.

In my case, completing architecture lead me to building inspecting and consultation. Many of my students who seek less strenuous work on the body are also turning to building inspecting. If you are a labourer and need a career change, think about supervision as an option.

Having specialised technical knowledge within the building industry is a desired commodity. Utilise what you have and build onto it.

The building industry offers a professional a lot in terms of job opportunities and security. Should you feel unsatisfied with your job, pigeon holed or despondent about your professional future, make sure you have researched all options available to you; find out what other career pathways may be open to you. Furthering your education is the best way to achieve security and satisfaction. If you don’t have the time for it, find out what tools are available online.

Most importantly, seek expert help when it comes to finding what your best options are. At Master Builders SA, for example, there are a range a qualified people who can point you in the right direction. Master Builder’s offer a range of technical courses and information seminars that will not only improve your knowledge but also provide networking opportunities and create pathways to elevate your working status. When it comes to career progression, or starting your own business, it is never too late. Make sure you know what is available to you.

Should you want any further advice or information on the topic above, contact Chris Wiltshire at cwiltshire@mbasa.com.au or 8211 7466

Author

Chris Wiltshire, Development and Technical Manager SA BUILDER WINTER 2019

ADVERTORIAL

Portable Long Service Leave Every Australian State and Territory has a separate long service leave scheme for people who work in the building and construction industry – providing portability of long service leave entitlements between employers and across the country.

Liability for a long service leave payment to your employees at some future date transfers to Portable Long Service Leave enabling smoother cashflow for employers and one less complex calculation to worry about.

In South Australia we’re known as Portable Long Service Leave. We manage long service leave entitlements for approximately 2,500 employers covering 30,000 workers across the industry.

It also takes away the double whammy of making a long service leave payment and backfilling a position at the same time!

• Aids cashflow with regular micro payments.

• Apprentices accrue entitlement at no cost to the employer.

• As the scheme is compulsory for long or short term employers, you contribute equivalently and share the dividends of a highly productive workforce.

• Portable Long Service Leave track your employees work history and take responsibility for future payment of long service leave claims at no further cost to employers.

Despite operating for just over 40 years, there’s still some mystery around the scheme and the most common question we’re asked is ‘how does it work?’

We track a workers accrued entitlement across multiple employers and then make payment out of the central fund when they reach an entitlement and opt to take a period of leave at no further cost to the employer.

What next?

Long service leave can have a significant positive effect on long term productivity through improvement in health and wellbeing.

When talking to employers we often refer to the portable long service leave schemes as ‘outsourcing your long service leave obligations’.

Funds not immediately required are invested in a variety of Discuss Long Service Leave openly with your employees investments whose earnings cover the costs of administration, and plan and encourage them to utilise it for a decent break wage inflation, and allow for a discounted levy rate. ready to return to work rested, motivated and productive.

Whilst businesses outside of the construction industry need to manage and provide for long service leave entitlements for their employees – our unique scheme under the Construction Industry Long Service Leave Act 1987 provides a pay as you go model.

What are the benefits • Portability of long service leave aids a fluid and efficient market of labour and skills throughout the industry when and where they are needed most without employees losing entitlement.

• 13 weeks leave after 10 years’ service to the industry provides time for your employees to relax, recharge and return to the industry boosting morale, reducing safety risks and increasing productivity.

It allows employers to discharge their long service leave obligations for eligible construction workers by paying the prescribed levy (every 2 months) into the central fund.

Please visit portableleave.org.au to find out if you need to register with the scheme and discover more about the benefits of portable long service leave for both you and your employees.

For more information visit: www.portableleave.org.au

How does it work?

Employer Pays Levy

Worker Accrues Leave

PLSL Pays Worker

Worker Takes Leave

Employer pays 2% levy into our central fund, based on worker’s remuneration.

Over 10 years, eligible worker accrues long service leave credits with us.

Worker reaches entitlement, applies to us for long service leave from central fund.

Worker takes up to 13 weeks of long service leave for some well deserved time off.

WWW.MBASA.COM.AU

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INDUSTRIAL RELATIONS

How to attract, create and keep exceptional employees Great employees are made up of two foundational elements - enthusiasm and teachability. The former denotes a passionate individual. The latter - one who wants to develop and progress; who is hungry to learn and who evidences the trait of humility.

If you get a third aspect of highly developed skills then you are onto a winner. If you have the first two attributes i.e. enthusiasm and teach-ability and the skill levels are less than required, their rise to skill mastery will be much faster than those who don’t evidence these traits to begin with.

The following are my key tips to attracting, creating, and keeping exceptional employees.

1. Remember, like attracts like If you have employees who absolutely love their place of work, odds are they will boast about it to their friends. In turn, you will have people calling to work with you.

2. Identify the traits of enthusiasm and teachability when recruiting If someone has the technical abilities but lacks the above key traits, there’s a good chance you’ll be helping them exit sooner rather than later. Much like trying to speed up a slow horse, trying to inject enthusiasm into a half-hearted, passionless person is near impossible.

3. Provide clarity on your expectations of the team member Be clear in the position description with roles, responsibilities and performance measures. If you can, involve the team member in the process of establishing performance measures to ensure a higher level of personal ownership.

4. Provide ongoing feedback When you regularly give feedback to your employees, they can gauge how they are progressing in their role. Doing this in a formal performance review annually isn’t enough.

Try to give good feedback at least monthly, so your employees can know the areas they’re doing well in, and those where they can be doing better.

From many discussions that I’ve had with good employees and good managers over the years, providing feedback monthly is, almost without exception, desired.

5. Create a relational and fun culture, not just a do your job, head-down tail-up workplace.

Provide an enjoyable environment where people can be themselves while achieving highly. This starts from the top down.

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6. Shift the culture to one where the focus is on results, not time If the focus is on getting the job done properly with care, and not just as quickly as possible, pressure is relieved and employees can work to their full ability and with their full attention on their tasks.

13. Help toxic employees to either become healthy or exit the organisation These infected employees create high attrition of healthy team members. Good people want to work in a positive environment and will depart when management does not address this toxicity.

7. Work both on yourself and your management team Make it your goal to be exceptional people developers and communicators – not just operational doers.

Enhancing longevity and productivity Understanding what our people need (their drivers) is one thing. If we then seek to integrate these drivers into the workplace culture through high relational and communicative skills, you’ll get a more highly engaged and longer-term workforce.

8. Know that employees want to feel the love – not the rod of correction Be sure to give praise where it’s due. Your employees want to know that their contributions are highly valued.

9. Understand the purpose and vision for your organisation And frequently communicate this to your staff.

Demonstrate how their daily work contributes to the bigger picture. Create advancement tracks for them to progressively advance in their skills and passions toward this greater vision.

10. Raise the performance bar high Communicate that you will work with your team for the achievement of such and will hold them accountable for the results.

11. View your people and communicate with them as human beings, not workers Human beings live a whole life that work is merely part of.

Workers, on the other hand, are seen as one dimensional: good for only one thing – doing the job. Your best people will stay around longer if they are seen and treated as human beings.

12. Ensure that people are paid wherever possible above award wages and rewarded Reward commensurately (not necessarily financially) for performance achievement.

Many organisations fail at this point. They might have great benefits, but if they operate in a purely non-relational manner with poor communicative skills, the engagement drops along with the resultant positive outcomes.

Creating long-term employees and a highly engaged workforce doesn’t just happen. It takes planning, implementation and incremental integration into the cultural fabric of the organisation.

Whatever situation you are currently in, whether experiencing high employee attrition or a highly satisfied workforce, capture a fresh vision of what your organisation could be.

Then, make plans for its fulfilment and start moving forward. Not only will your employees and customers thank you for it, but you are more likely to experience higher degrees of self-satisfaction and profitability in the process.

Author

Ray Hodge, “The Efficiency Driver” www.rayhodge.com.au SA BUILDER WINTER 2019

INDUSTRIAL RELATIONS

ReturnToWorkSA providing support to the building and construction industry

The construction industry has always been considered high risk for work injury, and in 2018, ReturnToWorkSA Insurer statistics identified the construction industry as having the second highest number of accepted claims in South Australia after manufacturing.

According to Mates in Construction research, it is also an industry that experiences high rates of suicide, with Construction workers six times more likely to die from suicide than a workplace accident.

ReturnToWorkSA acknowledges the unique challenges faced by the construction industry including complexity of injuries, and possible limitations in providing suitable duties. In some cases, the fear of victimisation and stigma, prevent construction workers from reporting work injuries and reaching out for help to manage poor mental health. ReturnToWorkSA is committed to supporting the building and construction industry and has partnered with Master Builders Association to support its members, and the industry as a whole.

ReturnToWorkSA offers free services to employers wanting to improve return to work within their organisation, and develop a mentally healthy workplace.

In her role as, Employer Education Advisor for ReturnToWorkSA, Houda Peters works with employers, and their Return to Work Coordinator, where one is appointed, WWW.MBASA.COM.AU

to feel empowered to play an active role in the recovery and return to work of an injured worker. By providing a tailored service, Houda helps employers prepare their workplace for return to work and develop early intervention strategies.

ReturnToWorkSA also offers access to free educational and skill building programs to support employers and their Return to Work Coordinators.

In addition to support from Houda, employers can train and appoint a Return to Work coordinator, or can utilise Master Builders consultancy service to maximise return to work outcomes.

Mardi Webber, ReturnToWorkSA’s mentally healthy workplace consultant, works closely with organisations wanting to do more in the area of workplace mental health, and assists them to develop strategy and initiatives that support a mentally healthy workplace. Investing in staff wellbeing doesn’t have to be costly, with Mardi able to connect employers with the many free tools and resources available, as well as providing free tailored education to kick-start an employer’s wellbeing program.

By practicing good return to work principles, and accommodating workers back into the workplace following injury, employers will see better return to work outcomes, resulting in reduced premiums, and positively contributing to an organisations’ return to work and safety culture.

For further information about ReturnToWorkSA’s upcoming event at Master Builders, speak with Samantha Cowan, Injury management and return to work consultant. If you would like to learn more about ReturnToWorkSA’s employer services, and to access support, visit www.rtwsa. com or contact coordinators@rtwsa.com and mentallyhealthy@rtwsa.com.

By focusing on staff wellbeing, and promoting open and transparent communication around mental health, organisations will see an increase in productivity, improved staff morale, and a reduction in physical and psychological injuries.

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MEMBERSHIP

High-end homebuilder celebrates 20 years

Urban Habitats’ attention to detail, personalised approach and commitment to delivering uncompromised quality has earned the company a reputation for excellence in high-end homebuilding.

“Over the years we have worked with so many great clients, trades, suppliers and consultants and those relationships are key to delivering beautiful homes that meet the needs of modern families,” he says.

Specialising in new builds, renovations and extensions, the company celebrates its twentieth anniversary this year and has amassed an enviable portfolio of properties.

“There’s no doubt that homebuilding has its challenges but there’s nothing more rewarding than working closely with a client to ensure a smooth process and ultimately a home that exceeds their expectations.”

The award-winning company was founded by Managing Director Jock Merrigan, who has always been passionate about helping clients bring their vision to life.

“When I started Urban Habitats, it was just me working out of home and driving around in a ute so it is incredibly rewarding to see how far the company has come since then. We’re now a full-time team of 10,” Jock says.

“We’re fortunate to have had 20 years in the industry and that longevity is due to collaboration with clients, strong communication with our project partners and a genuine enjoyment of the work we do.

Josh Semmler and Jock Merrigan

“We’re passionate about design and we’re passionate about building but above all else, we’re dedicated providing our clients with a quality experience from concept to completion,” Jock, who is also chair of the Master Builders SA Housing Committee, says.

“It’s an honour to design and build people’s dream homes and it’s a responsibility we never take for granted.”

This sentiment is shared by Josh Semmler, who started with Urban Habitats about 15 years ago and has been the Director of Construction and Development since 2014.

Last year Josh was named the Young Builder of the Year at the Master Builders South Australia Excellence Awards.

The Urban Habitats team relishes the opportunity to create homes that reflect a client’s lifestyle, personality and future aspirations.

“Strong relationships built on trust, good communication and aligned values are one of the reasons the company continues to grow and succeed,” Josh says.

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A recent project highlight is a luxury house set on a sprawling property in Aldgate. The contemporary, five-bedroom home was designed by Victorian-based WoodMarsh Architects and built by Urban Habitats.

“The Aldgate house has definitely been a standout for us.

Its scope and scale challenged us in many ways but the quality of the finished product was beyond what anyone could have imagined – it’s a truly breathtaking house,” Jock says.

With dozens of stunning homes in Adelaide’s blue-chip suburbs under their belt and many more in the pipeline, Urban Habitats is well placed to build on its success well into the future.

For more information about Urban Habitats, visit: www.urbanhabitats.com.au

SA BUILDER WINTER 2019

MEMBERSHIP

HOST TR AINER OF THE MONTH

FEBRUARY 2019

Piotto Interiors Pty Ltd Piotto Interiors Pty Ltd is into their fifth year in the industry and boast an average of about 25 employees at any given time. Piotto predominantly do commercial ceilings, partitions and fit-outs and some staff have up to 40 years’ experience within the ceilings and partitions trade. Piotto have been a member of MBA for five years and have utilised the MBA GTO scheme this whole time.

Piotto believe that benefits of the MBA GTO scheme include the competitive rates and ease of the administration side.

Furthermore, the ability for the apprentice to experience how other companies operate if there is a quiet period, as well as the convenience of how the MBA places them elsewhere when needed.

Piotto supervisors pride themselves on the collaborative approach between themselves and the MBA staff with regard to managing the progress of the apprentice’s skills training.

Piotto Interiors currently has three MBA apprentices, and mainly contract to commercial builders – some of which include FDC, Mossop, Kennetts, Sarah Constructions, Badge and numerous others.

Left to Right: Josh Daumann (Supervsior), Liam Fischer (Third year wall and ceiling lining apprentice) and Steve Noske (Director)

MARCH 2019

Timberwolf Construction Established in the suburbs of Adelaide across a dining room table after an excited conversation about dreaming big, three fully registered and qualified carpenters Dean, Craig and Glenn joined forces to become one of Adelaide’s most well-known commercial carpentry group – a decade-long success story. From humble beginnings to now handling multi-million dollar projects, the dynamic company still acts as mentors for aspiring apprentices.

Timberwolf have been a loyal host with Master Builders SA for the past six years and currently host six apprentices with Master Builders with a mixture of first to fourth year levels.

Timberwolf believe there are many advantages of going through Master Builders SA group training services including the flexibility of having a variety of different year level apprentices when required, not being locked into any contract and the opportunity to forge good relationships with Master Builders Field Coordinators.

WWW.MBASA.COM.AU

Craig Loukes

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MEMBERSHIP

APPR ENTICE OF THE MONTH

FEBRUARY 2019

Jack Chase Why did you become and apprentice?

What does safety mean to you?

I’ve always been interested in working in the building and construction industry and I knew I consider safety to be one of the most important things in my job, because I want not I wanted to do something hands on instead of being stuck in an office all day. I realised only myself but my workmates to be able to go home safe without any injuries. being an apprentice would be a great way to help me start my career in carpentry.

Field Coordinator comments: What do you enjoy most about being an apprentice?

Although I’ve only known Jack for a short period of time, I felt that he was worthy I think the best thing about being an apprentice is being able to learn a huge variety of of being nominated for Apprentice of the month. Jack has shown a great deal of useful skills, I’m always learning new things about carpentry and tools. I like being able commitment and positive attitude towards his work set out by his Host employer to be hands on and work with different materials. The best part is getting paid to learn (Timberwolf Construction). Jack also shows a great deal of respect towards his peers something I’m interested in. and takes his work very seriously by being in control of his profiling and Take 5.

What is your goal once you have finished your apprenticeship?

I really enjoy the work I’m currently doing so it would be good to continue on with this for a while. In the future I would like to own my own business renovating houses.

Congratulations Jack, keep up the great work.

Who would you like to thank?

I would like to thank my parents for pushing me In the right direction after not knowing what I wanted to do when I finished school. I started my apprenticeship as a school based apprentice when I was 16 years old in year 11. It was really helpful getting the support from parents helping me get through tough times. I’d also like to thank my boss’s Glenn, Craig and especially Dean from Timberwolf and my work mate Save from Timberwolf for teaching me pretty much everything I know and helping me learn new things. As well as Master Builders for giving me the opportunity to start my apprentice, giving me support and picking me for this award.

Left to Right: Alex Canova, Jack Chase and Mario Capella

MARCH 2019

Taylor Riley Why did you become an apprentice?

I became an apprentice to learn new skills and knowledge along with hands on experience within the carpentry trade. In doing so, I have learnt to be become responsible and accountable through my commitment to the job.

What do you enjoy the most about being an apprentice?

I enjoy having the opportunity to work in a group with one goal in mind – to get the job done quickly and to a high standard. Being able to work outside and being active everyday is a highlight for me as I am someone who enjoys being outdoors.

What is your goal once you have completed your apprenticeship?

I plan to continue working as a first fix carpenter and in the near future to run my own business as a first fix carpentry subcontractor.

Who would you like to thank?

I would like to thank David Knight from Madd Carpentry for hosting me through my whole apprenticeship. His knowledge and leadership have been invaluable in both what I have learnt in terms of carpentry and how I have developed as a person. Master Builders have supported me and have helped with anything I have needed.

What does safety mean to you?

Safety means I can come home from work everyday and enjoy my everyday life. The importance of safety is essential in the building industry as it is fast paced and high risk.

My work crew ensure that everything is being done to minimise potential risks on the work site so no one is hurt, and we can all go home unharmed.

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Field Coordinator Comments: Taylor has consistently received positive feedback from his host. He is respectful, hardworking and an effective communicator. Taylor is the most experienced of the 3 MBA apprentices at this host and shows good leadership on site. Taylor goes about his trade with an enthusiastic approach and is always eager to ask questions and learn new skills on site. Taylor performs well at Trade school and always communicates with MBA staff promptly and correctly. Taylor follows all MBA policies and procedures and completes his Daily Take 5 with great detail and good hazard risk assessment techniques.

Commencement of Apprenticeship: July 2015 Current Host Employer: Madd Carpentry

Taylor Riley forth year carpenter (Left) with Alex Canova Bianco

SA BUILDER WINTER 2019

OPPORTUNITY KNOCKS...

ALLSTONE – Leading stone supplier, Adelaide Allstone, a recognised leader in its field, was established by present owner 30+ years ago. Presently transitioning to retirement and having no children, this successful business is for sale.

SA Commercial Blinds Pty Ltd (SA owned and operated) is a proud supplier of window furnishings to the commercial market in South Australia.

Specialising in supplying stone for building, paving, pool surrounds and flooring for commercial and domestic. Features include: • excellent website – allstone.com.au • impressive displays in large showrooms • small, skilled & loyal team • established, reliable, local, national & o/s suppliers • wide customer base, large repeat business • exceptional management systems • preferred supplier for major projects Director can assist in transition and consult in purchasing stone.

Located in Prospect close to CBD, long or short lease, enormous potential to expand or franchise.

Small projects, large projects or a project that is out of the ordinary, we would love to hear from you.

Contact the Director, Peter Wood - 0407 277 155 e: adelaide@allstone.com.au

Got a residential project? We would love to help you as well.

BUSINESS FOR SALE

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GALLERY Our HiViZ Women Building SA program continues to go from strength to strength! 250 people attended our annual HiViZ luncheon at the Convention Centre in May. Guest speaker Susan Alberti AC’s had the audience in awe of her determination, resilience and compassion. Thanks to our naming rights partner Hansen Yuncken and event sponsors CBUS Super and Fenwick Elliott Grace.

Prime Minister Scott Morrison arrived in Adelaide just days before the election to promote the Government’s First Home Loan Deposit Scheme. The Prime Minister is pictured with Master Builders SA CEO Ian Markos who strongly welcomed the announcement.

CALLING ALL ANGLERS!

Federal Treasurer Josh Frydenberg was in Adelaide in April to promote the Government’s Budget. From 1 July 2019, the Government will increase incentive payments for businesses that employ apprentices from $4000 to $8000 per placement, with a new $2000 incentive paid to apprentices. Master Builders lobbied strongly for these policies and it was fantastic to see them taken up. Many thanks to our excellent host employer David Knight from Madd Carpentry for your assistance on the day, and your continued support for young South Australians wanting a start in the industry!

Master Builders SA Catch of the Year Want to show off your best work and win a Johnnie Walker Blue Label Scotch Whisky and Crystal Glass Gift Pack while you’re at it?

We’re on the lookout for the Master Builders SA “Catch of the Year”.

Criteria: • You must be a Master Builders SA member • The fish must have been caught during 2019 • Yes, size matters, but the winner will be judged the most impressive catch Each edition of SA Builder this year will showcase member entries.

Here we have Phil Pike with two tuna he caught off Greenly Island in January, not a bad catch Phil!

Send all entries to: wfrogley@mbasa.com.au

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Master Builders CEO Ian Markos with former Chief of Staff to Tony Abbott and now Sky News commentator Peta Credlin.

Past Presidents Luncheon on 30 November 2018 at Rigoni’s.

SA BUILDER WINTER 2019

IN THE BIANCO MID YEAR SALE!

13 May – 30 June 2019 *Visit bianco.com.au for terms & conditions

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Bayer

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Construction Industry Training Board

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G & G Tiling Co

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Making Doors

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Master Builders SA

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MBA Insurance Services

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SA Commercial Blinds

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40

SA BUILDER WINTER 2019

Master Builders SA Suppliers Over 100 suppliers offer discounts to Master Builder SA members that will benefit you in your business.

To access the extensive range of suppliers listed in our Supplier Directory go to the Members Portal at mbasa.com.au and click on login. Here are just a few of the suppliers you will find there: Access Hardware

ELWD

Onesteel Reinforcing Pty Limited

Adelaide Pest Control

Fielders Manufacturing

Rapid Metal Developments (Aust)

Alexander Symonds

Flexible Force

Revolution Roofing

Australian Timbers

FMG Engineering

Banner 10

Gliderol Garage Doors

Basic Steel Supplies

Glimpse Home Improvements

Beaumont Tiles

GO Shelving

Best Bar Reinforcements

Hanson Construction Materials

Secure Storage Systems

Bettacrete Precast

Haymes Paint

Softwoods Timberyards

Bianco Construction Supplies

Hume Doors

Spence Doors

Bianco Sourcecorp

I AGE MEDIA

St John Ambulance Australia SA Inc

Bob Burns Blinds

Jolong Australia (SA)

Bondor Australia

Keith Timber & Hardware

Brickworks Building Products

KW Tregloan

BuildSurv

LBW Consultants

Chevron Glass

Littlehampton Brick Co

TMK Consulting Engineers

Consolidated Energy

Marion Sand & Metal

Tower Access & General Hire

Contract Carpets

Maxispan

Two Commercial

Copycat Printing

MBA Life Members

Tyrone Electrical Services

Cordell Information

MC Shared Services

CR Kennedy

United Equipment

Mercantile CPA

Creative Serum

Mister Doors

Dellta Project Management Dial Before You Dig SA/NT Inc.

Newtons Building & Landscape Supplies

Electrolux Home Products

Officeworks

Ri-Industries Developments Roof Seal (SA) Routleys Bathroom Kitchen Laundry

SUHO Stratco (SA) The Financial Foreman

Unitex Render Warehouse (SA) Uniting Communities – Adelaide Wallbridge Gilbert Aztec Wood ‘N’ Logs

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 much more.

Download the Master Builders SA App and consolidate all your key membership resources including the Frequent Values Program into one easily accessible place, your phone or tablet.

WE GET IT. We understand your needs because we’re the construction industry experts.

Many insurance brokers handle a wide range of industries and occupations.

Entrusting your business to a specialist construction insurance broker ensures you have the best value for money coverage, expertise to handle claims and access to tailored risk management advice.

Our business is built on advice.

Candice Klau

Business Development Executive (SA) MBA Insurance Services

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