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MASTER BUILDERS VICTORIA
03
A WORD FROM THE EDITOR
Taking inventory of our progress I
came aboard at Master Builders at the tail end of the previous election, just in time to see Daniel Andrews become our new premier. So I’m detecting a certain sense of déjà vu as we creep closer to November. With so many things different, yet so many the same, it can he hard to determine exactly how far we’ve come as an association since then. That’s one of the reasons we convened our industry conference in March — to take a hard look at how well we’ve been tracking and determine to what extent we need to make some course corrections to ensure we stay locked onto our target — helping you to get the work you’re after. Both President Melanie Fasham (page 06) and CEO Radley de Silva (page 10) discuss the conference in this issue, helping to outline the
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To take a hard look at how well we’ve been tracking and determine to what extent we need to make some course corrections to ensure we stay locked onto our target. ways in which our sector committees and Board determine and pursue our priorities for the year ahead. Flinders Street Station looms large in the hearts and minds of Victorians, and this has been a milestone year for this important piece of transportation infrastructure. It has received a deserved scrub and facelift, and that’s reason for celebration with a profile of the work performed by Built (page 18), who spearheaded the restoration. We’re also pleased to include a short foreword by the Hon Jacinta Allan MP,
Minister for Public Transport, who has been closely linked to the success of the repair work. On page 12, Leanne Edwards, General Manager Marketing, Policy and Communications, introduces us to our latest marketing campaign called ‘Someone should have asked’, which draws on both humour and agony associated with poor workmanship, to underscore the importance of choosing a Master Builder. Head of Industrial Relations Daniel Hodges offers a brief summary, on page 34, of the important role the ABCC plays is promoting the Building and Construction Industry (Improving Productivity) Act 2016, which will help ensure that building work is carried out fairly, efficiently and productively for the benefit of all building industry participants. There is a lot to look forward to in the issues that follow too, as they will be dwelling heavily on our annual series of awards programs for regional and metropolitan building and construction. Always a good read. Peter Sackett Editor
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MASTER BUILDERS VICTORIA
Contents FOREWORDS 03
A WORD FROM THE EDITOR
06
PRESIDENT’S FOREWORD
08
GUEST FOREWORD Sue Eddy, Chief Executive Officer, VBA
16
SPECIAL FOREWORD Jacinta Allen, Minister for Public Transport, Minister for Major Projects
REGULARS 38
NEWS ROUND-UP
41
REGIONAL ROUND-UP
42
SOCIAL PAGES
64
DIRECTORY
66
WHAT’S NEW
FEATURES 10
FROM RADLEY DE SILVA
12
MARKETING
14
BLSC
18
FLINDERS STREET STATION RENEWAL PROJECT
22
GREEN LIVING
27
TRAINING
30
INSURANCE
31
LEGAL
34
INDUSTRIAL RELATIONS
36
FINANCE
MEMBERSHIP 50
MEMBER PROFILE: STORMTECH
52
MEMBER PROFILE: JAD HOMES
54
NEW MEMBERS
56
MEMBER MILESTONES
58
MEMBER SUPPLIES
Produced by Newscorp on behalf of Master Builders Victoria EDITOR: Peter Sackett EDITORIAL LIASION: Josie Adams DESIGNER: Josie Adams
05
06
MASTER BUILDERS VICTORIA
PRESIDENT’S FOREWORD
A look back at our industry conference O
n 1 March, we held our industry conference with the Council of Management, Board of Management and nearly all of our Housing, General Contractors, MM&S, Specialist and Country Sector Committee Members in attendance. We were also joined by Denita Wawn, CEO Master Builders Australia and Hedley Davis, our National President. This event is our annual opportunity for all committees and MBAV staff to discuss issues that affect each sector and the industry at large. After finishing our council meeting we moved into an update of progress to date on the 2017/2018 corporate plan, focusing on Master Builders’ top 10 priorities. We also reviewed the priorities that were set by the sector committees this time last year to see how far we’d come in meeting them. In the next session, Radley shared the results of a staff review of the Master Builders’ vision, mission and values to ensure that they are clear to all and can be upheld in every activity undertaken. The results included making subtle adjustments to wording that yielded strong results in terms of clarity and intent. When focusing on the corporate plan for 2018/2019, the general managers each outlined specific actions to pursue. With the right teams in place and this plan at front of mind, I have little doubt that we will achieve our vision and mission. The final thinking exercise had us break into sector groups to review last year’s priorities and amend them as required. Each sector group has been providing critical feedback to Master Builders staff at their regular meetings, but this was the first time we have reviewed them all together. It’s not surprising that each of the priorities will require actions for years to come given the nature of our industry and the time it takes for any regulatory change to be fully implemented. A review of the topics we discussed revealed that a skills shortage is still very high on the agenda, along with the ever increasing regulatory burden and red tape. The en-masse discussion highlighted that there is significant overlap among the sectors in addition to specific needs. It is now our challenge to incorporate these into the corporate plan if they haven’t been already, prior to ratification at the May Council of Management meeting.
After all of that thinking work, our reward was to listen to our line-up of guest speakers. Leader of the Opposition Hon. Matthew Guy discussed the upcoming election and the priorities of the state Liberal Party. While it was clear he understood Master Builders’ interests, it was still too soon to understand what Liberal policy might take shape as a result. Mr Guy mentioned, however, that he looks forward to our election scorecard. Andrew Grear, Executive Director, Planning Building and Heritage, DELWP delivered an update on the extensive work required to identify buildings with non-conforming cladding and the methodology used to determine where rectification will be required. Jon Briskin, Executive General Manager Retail, Origin explained how utility usage, generation and purchasing will change in the future. It’ll be a different world; I can’t quite get my head around the idea of purchasing energy at different times of the day, at different prices, from different sources depending on my family’s needs. Master Builders Australia CEO Denita Wawn explained the amount of work it requires to make certain the government to hear our needs. I was surprised to learn that of the 25 papers under review in Parliament, 23 have elements that are applicable to the building industry. This again confirms how important we are as a sector to the health of our nation. Stuart Mosley, CEO of Victorian Planning Authority spoke about the significant housing needs we face as Victoria’s population soars. He estimates a need for 193 houses per day to meet the rate of growth, and confirmed the VPA’s commitment to unlocking land that is needed. My overall impression of the day? We have a strong plan on our hands, but we need some action from government on trade shortages and land supply to be able to keep up with the population growth predicted. Melanie Fasham President, Master Builders Association of Victoria
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MASTER BUILDERS VICTORIA
GUEST FOREWORD
Strong leadership needed during rapid growth I
f last year is to serve as a guide, 2018 is going to be another big year for building and construction in Victoria. The VBA recently released its building permit data for 2017 and with it, further evidence of a robust Victorian industry. In a record-breaking year, the value of permits grew to $35.8 billion – an increase of $3.8 billion on 2016. In the past decade, the value of building permits has effectively doubled from the $18 billion reported in 2007. This growth speaks to the importance of the building industry to Victoria – not just its economy, but to all who call it home. But with this comes challenges, and how we sustain growth while continuing to create a better industry is a leadership moment for us all – for regulators, the industry and the government. Recently, serious issues have been raised regarding the use of combustible cladding. In part, this involves practitioners not understanding their responsibilities when designing, approving or constructing buildings, particularly residential apartment blocks. As a regulator, it is the VBA's job to provide leadership to the industry on this matter, as well as help find solutions to these issues. Early this year, the VBA commenced work leading a state-wide audit of buildings including apartment complexes, motels and hotels three-storeys and above. This is an enormous task, one which we are committed to undertaking efficiently and effectively as possible. We want to provide Victorians with confidence that they are safe from the dangers presented by combustible cladding. We realise this work will not be easy and it will require everyone in the building industry to work together. As noted by the Victorian Cladding Taskforce, there are cultural issues and complexities within the industry and the building codes that need to be addressed. I have
no doubt there will be challenges for all parties involved in this process, but we will minimise uncertainty throughout the audit by being transparent and open to feedback. However, mobilising our resources to respond effectively to these particular challenges is not enough to satisfy you, the industry in general or the broader community. The VBA recognises it must also evolve into a robust and proactive regulator capable of identifying emerging risks as they appear on the horizon and then responding effectively to ensure public safety and confidence in the industry are not put at risk again. Our work must be undertaken in partnership with all stakeholders if there are to be no cracks through which the next problem can squeeze. We look forward to working with closely with Master Builders Association of Victoria and its nearly 10,000 members to find and fill any such cracks well before they can bring us challenges like those we are dealing with today. Working together in this way will ensure the Victorian building industry remains one that our community can have confidence in. Sue Eddy Chief Executive Officer, VBA
10
MASTER BUILDERS VICTORIA
FROM CEO RADLEY DE SILVA
How your sector committees work for you
I
n the previous issue, when we were eight months out from the next Victorian election, I explained the issues that Master Builders wanted bring to the attention of our elected leaders. I cited information gleaned from the report we commissioned from Deloitte Access Economics—‘Construction Workforce in Victoria’—which helped to attach numbers to the trends we already knew to be true. Most notably, those themes included the prospect of a looming skills crisis—a perfect storm of sorts, in which an unprecedented wave of population growth could wash over a state with too few places, for newcomers and current residents alike, to gain a foothold for their housing and infrastructure needs. In February, we convened our industry conference (on which President Melanie Fasham reflects in her foreword this issue, p.6) in a city location, a setting for reflecting on what our association has achieved during the last year, and what we need to keep in the crosshairs for the twelve months to come. Your sector committees play a significant role in helping to perform that exercise. They help ensure that the decisions we make about what to say to our government leaders reflects what you have told us is important in getting you the work you want. A lot of what came out of that conference
should sound familiar to you—the push for mandatory trades registration, combating the spread of non-conforming products, attracting and retaining people towards a career in our industry and securing a minister for building and construction in the next state government. These are among the priorities that have been front and centre for us for the last few years, and we continue to infuse them with new information and energy, as with the recent Deloitte report. We are pleased that the Liberal Party has taken the step of appointing a Shadow Minister for the Building Industry. We call on Labor to follow suit, so that the party that presides after November will have the required focus to guide the activity the industry that is the greatest full-time employer and contributes more than 40 per cent of the taxation revenue for Victoria. Currently, attention to this is not optional in our view. Neither party can afford to neglect it if our state is to thrive. I hope you noticed our continued campaign for mandatory trades registration got the attention of reporter Allison Worrall in March (‘Push for all Victorian tradespeople to be registered to prevent poor workmanship’, Domain, 23 March), who helped us tell the story of how this issue, which might otherwise seem dry and distant to the average homeowner, has
a connection to the quality of work they can expect from the builder they choose, and the potential costs of having to correct it if done improperly. Other priorities may come to mind less readily, but they are by no means less important or less supported by the committees at large. The issues of planning reform and industrial manslaughter legislation have an immediacy that requires our active lobbying of the major parties to make them the platform issues they should be. Planning reform is one of the keys to decongesting progress on providing homes for the growing number of Victorians and addressing the problem of housing affordability, to say nothing of helping you complete your work faster and with fewer unnecessary bureaucratic obstacles. Likewise, industrial manslaughter legislation is a blunt tool which may sound like an impressive method to further the cause of occupational health and safety, but offers little if any evidence of capability. In fact, it threatens the building and construction economy, on which
MASTER BUILDERS VICTORIA
11
FROM CEO RADLEY DE SILVA
Victoria relies so heavily, by offering a disincentive for companies to conduct business and compete for jobs. The issues of resource shortages and of skills shortages, particularly in the context of attracting more young talent to apprenticeships and careers in our sector, are quantifiable concerns, examples of which we need to demonstrate to the government to get their buy-in on marketing and public awareness programs that will help Victoria steer clear the consequences of such shortages. Getting that message across to employers and apprentices is imperative. I’m reminded of some of the television commercials for armed services careers—ads that demonstrate the variety and satisfaction to be had in work that is camouflaged by olive drab. They highlight the variety and fun in a career in that industry. We need to take a similar approach for building and construction jobs. Also, you may have seen City Editor John Masanauskas’ article in the Herald Sun back in April (‘Women key to tradie shortage’, 1 April).
One of our own honourees, painter Alisha Grant, was profiled as an illustration of how women in the trades are in an excellent position to help address the growing skills shortage we face in Victoria. I note with some satisfaction that the article raised the ire of one Herald Sun reader enough to call us with his potent disapproval of women being ‘on the tools’. That this opinion struck all of my colleagues as so absurdly strange and antiquated reassured me that things are moving in the right direction, albeit at a slower pace than we’d like. (He was not a member, by the way.) Drug and alcohol awareness and mental health resources are already in place in our industry, but oftentimes they are obscured by the fog of the problems they address. Our country sector, in particular, seemed to embrace this concern, given that smaller communities are often where a lack of anonymity can work against a person’s likelihood to seek assistance. Master Builders will continue to help our members find the resources they need when
they reach out to us. This is similar to the approach we continue to take with spreading awareness of the building regulations updates. We’ve made a practice of alerting our members to the numerous changes through our website, EDM newsletters and special bulletins. Additionally, our Master Builders Assist staff has been essential to getting our members connected with the right people and resources quickly and efficiently. That will continue assuredly. The next season for focusing on enterprise bargaining agreements is already on our radar. Such is the impact of the terms of any construction EBA in Victoria on the health and competitiveness of construction companies, and on the vigour of the state economy, that we are in the process of establishing a working group, with the focused support of our commercial and MM&S committees, who represent members most directly affected by these critical negotiations. I’m certain it’s going to be an interesting and eventful countdown to the election.
12
MASTER BUILDERS VICTORIA
NEWS FEATURE
By Leanne Edwards General Manager Policy, Marketing and Communications ledwards@mbav.com.au
Ask the question before someone asks you - Is your builder a Master Builder?
W
e have all had at least one door that won’t open without a vigorous jiggle of the key in the lock, or a forcible bump of the hip to get the door to open. Or kitchen drawers that just don’t open because they’ve been aligned incorrectly. Or a light switch that turns on...nothing. After living with these building and renovation issues for awhile, we simply get used to them and sometimes stop noticing them. But most of us would like to avoid having to deal with them in the first place – especially after spending significant amounts of money on building or renovating our home. Living with building problems is the theme of our latest television advertising “Someone Should Have Asked” campaign developed in the suite of advertisements released under the “Is your Builder a Master Builder?” tag line. Three television commercials portraying problematic living conditions will be played in metro and regional Victoria over six months from the start of April. Following the success of our previous campaign, the advertisements will again also be rolled out through digital, radio and billboard media. You may recall that last year we asked consumers about their experiences and perceptions of builders and the building process. They rightly expect to engage an appropriately skilled and qualified practitioner who will support and guide them through the building process. Choosing a practitioner is difficult and fraught with risk – it can be hard to know whether the builder you’ve chosen is the right one. That is why, for the last 20 years, we have been asking consumers “Is your builder a Master Builder?” By encouraging customers to ask
MASTER BUILDERS VICTORIA
13
NEWS FEATURE
Images from Fenton Stephens’s garage, toilet and kitchen-themed commercial spots. themselves this question, we encourage them to use a builder whose membership gives them access to ongoing information and updates about the industry so that their skills are up-to-date. This gives clients reassurance that they will avoid those building pitfalls that make living with problems and imperfections so disheartening. Through our ‘Someone Should Have Asked’ campaign, we continue to highlight the importance of choosing a Master Builder by poking fun at the situations that people might encounter if they choose someone else. Again, Fenton Stephens has taken a humorous look at
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We have heard numerous accounts of consumers who have faced these very issues. building faults –a garage that doesn’t allow a car’s doors to open, kitchen cupboards that won’t stay shut and a toilet door that doesn’t swing clear of the toilet. While the three television advertisements are comical and make light of the issues that can arise from choosing a poor builder, they are not as cartoonishly exaggerated as they may seem to be. We have heard numerous accounts of consumers who have faced these very issues. And we can all have a laugh because we have experienced similar annoying building faults ourselves. That’s why we continue to ask consumers the question “Is your builder a Master Builder?” It resonates in the minds of homeowners, builders and the community, and ensures that consumers remember to engage builders that are amongst the most skilled in the business.
14
MASTER BUILDERS VICTORIA
BLSC
By Marc Lyons General Manager, BLSC mlyons@mbav.com.au
The role of industry in creating collaborative practices
A
dvocates of off-site manufacturing (OSM), which is sometimes referred to as ‘prefabrication’, ‘modern methods of construction’ or ‘industrialised building’, are typically eager to see the technology integrated across the full spectrum of building and construction activity in Australia. But to achieve this requires a remarkable degree of cooperation and collaboration throughout our industry. Many countries overseas have succeeded in this effort, and while Australia has recently adopted various off-site manufacturing technologies, the uptake of OSM in this market has been slow. Recently, Master Builders, in partnership with Western Sydney University, Metricon, Frasers Property, FMG Engineering and RMIT, developed a training program that explores ways to enable and encourage collaboration to hasten the adoption of technologies like OSM. The project aims to identify both driving factors and obstacles by undertaking a number of case studies of companies that have already embraced OSM. OSM is multi-faceted and includes the manufacture and pre-assembly of components, systems or modules before installation at their final location. Making the decision to shift to off-site manufacture can significantly alter the sequence of steps in project planning and implementation, with processes such as design, construction methodology and quality control occurring much earlier. The project found that achieving success in OSM initiatives requires innovation, process integration and a commitment to collaborative practices. Collaborative practices in OSM can be broken down into nine elements. Each of these elements is made up of competencies in the form of knowledge, skills and behaviours. Although these competencies are significant across all OSM settings, their relative importance can vary. In cases where resistance to change is strong among staff, then
leadership and compelling, shared goals become more critical. When investments in assets need to be considered in the early stages, change management can become a more critical element.
As the final part of the OSM adoption project, the BLSC developed a training program to be delivered at the BLSC where participants will be able to learn about a collaborative practice model and framework
MASTER BUILDERS VICTORIA
15
BLSC
and practice their collaboration skills in a simulated but realistic environment. The program is based on findings from three years of research and was completed through four rounds of data analysis, interviews, case studies and expert panel assessment. The program will also provide participants with opportunities to be immersed in short, team-based, live-simulated scenarios. The training allows for development of the knowledge, learning of behaviours and refinement of skills that will enhance their ability to be part of a leadership team for successful off-site manufacturing initiatives. The BLSC recently piloted the program with the goal of developing a fully fledged training course. More details about the project can be found here: https://www.westernsydney.edu.au/scem/ school_of_computing_engineering_and_ mathematics/research/australian_housing_ supply_chain_alliance_ahsca If you’re interested in learning more about the course or enrolling please contact the BLSC on (03) 9411 8000.
16
MASTER BUILDERS VICTORIA
SPECIAL FOREWORD
By Hon Jacinta Allan Minister for Public Transport Minister for Major Projects
Restoring Flinders Street Station
C
urrently there are some massive transport projects under way across the state. The Victorian Government is investing $30 billion in the infrastructure required to meet the needs of our growing population and solidify our reputation as the world’s most livable city and state. Many of these projects, such as the Melbourne Metro Tunnel, are highly visible but others, such as the $100 million Flinders Street Station Upgrade project are harder for people to see. During the last three years a dedicated team of craftspeople and heritage experts has been working to restore the exterior of the historic Flinders Street Station Administration Building and stabilize the structure. Hidden behind scaffolding and safety guards, the project team have been working hard to give Melbourne’s busiest public building the love it deserves. More than 5,000 litres of specially mixed paint and 3.5 tons of mortar have been used to repaint the exterior in its original 1910 colours and more than 700 windows have been restored by a team of carpenters set up in a workshop in the building’s old library. The unique Art Noveau style painted glass over the Clocks entrance has been repaired and revitalized for the first time since it was installed and metal workers have rediscovered lost techniques to manufacture an acroterion to decorate the station’s copper domes.
The view from the station rooftop where intensive restoration work has been happening.
The Elizabeth Street Tower Clock has been fully restored and tons of pigeon droppings have been removed from the roof cupolas and domes. Elsewhere around the station works to refurbish the main concourse toilets, the Elizabeth Street subway toilets and improve platform lighting are complete, while a new entrance to Platform 10 is currently under construction. The project has been a labour of love for the project team. Many of the workers have talked about the strong connection they feel with the original builders. One of the craftsmen working on the glass restoration remarked: "Someone like me actually designed this and put it together. You can see the decisions they made 100 years ago." This connection with the past has set a standard for the quality of the workmanship in the current project. Out of respect, everyone is working together to match the standards of the original builders and give Melbourne’s most recognisible building another century of life. I congratulate the managing contractor Built and project manager Development Victoria on their work so far and look forward to the project’s completion later this year. I hope you enjoy this issue of Master Builder and, in particular, the article on how the Flinders Street Station Administration Building has been saved.
MASTER BUILDERS VICTORIA
17
SPECIAL FOREWORD
Precious and fragile relics are stored on custom-built shelving.
18
MASTER BUILDERS VICTORIA
FLINDERS STREET STATION
Laura Luvara Strategic Communications Advisor
Flinders Street Station renewal project T
he Master Builders team was lucky enough to tour the $100 million Flinders Street Station refurbishment project, which is slated for completion in mid-2018. Project Manager Mathew Pepper from Built, the company engaged to complete the works, talked us through the challenges, highlights and immense satisfaction in undertaking this unique project. Some projects are once-in-a-lifetime type stuff. When the Victorian Government called for tenders to the Flinders Street Station refurbishment, Project Manager Mathew Pepper recognised the vast opportunities
Built project manager Mathew Pepper shows Master Builders staff through the restoration sites, inside and out. within this one. "This is the kind of project Built can really take great pride in," Mr Pepper said. Mathew feels he and his team are making a great contribution to the city of Melbourne for many generations to come. "We’ve been entrusted with what the next 100 years looks like for this iconic building, and staying true to its history and heritage. Everything we’ve done is the same way it was done 100 years ago." Built has been contracted with restoring the 111-year-old Flinders Street Station administration building to its former glory. The
scope of the works includes restoring structural stability, repairing the ageing façade and providing a clean palette for future stages of redevelopment. The landmark complex is among the buildings with the highest rates of public access in the state; throughout the course of the project its is anticipated there will be 80 million ‘movements’ occurring beneath the $6 million cantilevered scaffolding erected to support the restoration activity. That’s 150,000 public movements a day. The scaffolding is set above Platform 1, which is the busiest platform in the MTM network. Due to the number of public movements each
MASTER BUILDERS VICTORIA
19
FLINDERS STREET STATION
Use only fists: every surface reveals a storytelling detail from the station’s past.
day, the importance of safety has been especially ‘drummed into’ the team. "Our team is heavily motivated around safety – it’s been actively driven into them from the start," Mr Pepper said. Built has engaged with the Victorian Government, Heritage Victoria, retail tenants, residential building occupiers, community user groups and rail operator MTM. "The major challenges with the Flinders Street Station restoration project were understanding, quantifying and executing the detailed heritage scope within Melbourne’s busiest rail precinct," he explained.
20
MASTER BUILDERS VICTORIA
FLINDERS STREET STATION
"Many stakeholder groups have an interest in the building and precinct in which it sits." Aside from the political, social and logistical challenges, the project also has the unusual challenge of requiring an abundance of specialised trades. "We had to find the right trades with the relevant experience and attitude to expedite the challenging scope within the busy rail environment," Mr Pepper explained. "The project had a history of undocumented existing services, many latent conditions, unprecedented interface with the public, hazardous materials, and security and social issues that required strategic management during both day and nightshift works." A site crew of 100 specialist heritage tradesmen have been required for the works. Among them were bespoke metal pressers, tuck-pointers and antique window restorers. A metal press was installed on site to allow for efficient manufacture and installation. Paint analysis was undertaken to create the original heritage colour ‘Flinders St’ and a father-and-son team completed the mammoth job of tuck-pointing the entire façade of brick work by hand. "Our challenge was knitting modern day building codes with heritage values," Mr Pepper said. Modern technology used includes building information modelling (BIM), mainly to track services and hazards including electricity, water and asbestos removal. Other hazards of the project included removing bird guano and repairing fire and water damage, the roof
MASTER BUILDERS VICTORIA
21
FLINDERS STREET STATION
A century’s worth of pigeon guano was removed from a multitude of surfaces, including the verdigris station roof. PHOTO: CONTRIBUTED having leaked since the mid-1970s. The clock tower and other domes have all been reinforced to withstand seismic movement. To preserve the history of the Melbourne icon, existing fixtures and fittings are being collected and stored in archive rooms. Among the items there are old ticket machines, vintage signage and marble columns and sheet music used in the now-dilapidated ballroom. When Built complete their contract in mid-2018, this grand Melbourne icon will be revealed as it was in the early 1900s – primed and ready for the next 100 years of serving Melbournians.
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MASTER BUILDERS VICTORIA
GREEN LIVING
By Dr Philip Alviano Sustainable Building Advisor palviano@mbav.com.au
W
ith every new project the benefits of modular construction become clearer —reduced construction times, improved site safety and fewer cost overruns make a strong case for increased adoption in the industry. The 3rd Annual Clariden Australia and New Zealand Modular Construction Conference took place in Sydney from 28 February to 2 March and, for the first time, came to Melbourne from 5 to 7 of March. Judging by the number of attendees at
Modular Construction Conference showcases project benefits
both events, modular construction is clearly of substantial interest. Master Builders has supported our members by being involved in studies focusing on modular construction to assess the benefits to our industry. This was recognised by an invitation to present and to become the knowledge collaborator at the conference. Together with Professor Kerry London from Western Sydney University, we presented on the results of a recent Australian Housing
Supply Chain Alliance project entitled “off-site manufacturing collaborative practices to deliver change”. The information collected during the project has been used to develop a training program with the BLSC, which will be designed to assist companies with the implementation of new construction techniques to their operations. The BLSC also featured as a part of the Melbourne conference when it was visited by the conference attendees who were eager to get a
MASTER BUILDERS VICTORIA
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GREEN LIVING feel for the centre’s innovative training programs. Highlights of the conference included a keynote address by Amy Kulka-Marks from XSite Modular and the Modular Building Institute. Her address stressed the importance and benefits of modular construction. For maximum benefit, the traditional process—a sequence beginning with design and then moving to tender — needs to change. Collaboration among all those involved is the key and this needs to occur from the beginning of the project. This message was reiterated by numerous participants during the conference. Amy produced information from the Lean Construction Institute that showed 49 per cent of traditional projects are over budget and 61 per cent are completed late. By moving anything that does not have to be done on site, and that involves waiting or mess, off-site, the chances of mistakes drop, resulting in reduced construction times. Faster delivery times also results in a quicker return on investment for the client. Factories can commence production earlier, hospitals can process patients sooner. Other benefits include less-congested sites, improved site safety, more cost and schedule
Discussing the benefits of modular construction at the Modular Construction and Fabrication Conference.
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GREEN LIVING
certainty, reduced site disruption and better quality buildings. Jonathan Evans from Tzannes Architects presented a case study of Lend Lease’s International house project at Barangaroo in Sydney. The development was able to reuse buried timber from the original pier piles and wharf, in the facade. One of the project goals was to produce a distinctive building that would attract and retain staff and keep them healthy. Feedback from the current tenants is excellent with responses that emphasise how the work atmosphere—even the smell of the place—is refreshingly pleasant. The interior
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design expresses the structural elements and required only a minimal fit-out because of this. Features of cross-laminated timber (CLT) construction, such as delivery on site with connections in place, helps to save time. For example, saving one minute per connection on 1000 connections saves two days’ worth of work. In this case, Lend Lease reduced the build time by 10 weeks, despite still learning lessons along the way. As with other modular projects, there are more costs at the design level but these are easily recouped due to time savings later on.
Other highlights included presentation from our members Burkhard Hansen from Carbonlite Construction and Eddie Pallotta from Hickory. Burkhard presented the benefits of using prefabrication to produce passivehaus buildings and Eddie was able to provide some important insights into building prefabricated bathroom pods. At this point in their development, the benefits of prefabrication and modular construction have become so numerous and well-publicised that broad-spectrum uptake would appear to be only a matter of time as long as interest and pressure to embrace it remain consistent.
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TRAINING
By Ingrid Mountford Careers Manager imountford@mbav.com.au
I
t’s generally agreed that apprentices and trainees are important to the future of our industry. With continued investment in major construction projects and increasing housing starts, a skilled workforce is vital. In the last few years the number of people completing their traineeships has plummeted, and the number completing apprenticeships in Victoria, across all fields, has remained at around 48 per cent. Master Builders is pleased to be one of five groups that has been funded by the state government Department of Education and Training to conduct a pilot project to research factors that may affect completion rates for apprentices and trainees. Master Builders’ project will focus on apprenticeships within the building and construction industry. Many things can influence apprentices over the course of their
Understanding completion rates for our apprenticeships and trainees apprenticeship and these can affect their decision-making about whether the direction they’ve chosen is in fact the right one for them. The aim of the pilot program is to work directly with employers to learn more about the things that can help apprentices complete their apprenticeships, or work against them. Results from a member survey we conducted in 2015 pointed in the same direction as anecdotal advice from members—that ’soft skills’ are as important as technical skills in employer-apprentice relationships. This current project will delve more deeply into this aspect of soft skills. We will be interviewing 40 employers and 40 apprentices to hear about their challenges and successes. We will then focus on the top three areas of we identify from the feedback, and use this to
inform an interactive training intervention. Through these activities we hope to find ways to help employers to improve communication with their apprentices and develop more confidence in areas such as mentoring, sharing feedback or conducting difficult conversations. Our hope is that this may help make the time employers spend with their apprentices more worthwhile and productive, leading to an easier time on site and increased apprentice engagement and satisfaction. This, in turn, may contribute to apprentices remaining with their employer and completing their apprenticeship. We hear many apprentices’ stories during the interviews for our Master Builders Apprentice of the Year Awards, and in so many of these, the apprentices convey the utmost praise and respect for their employer, and their
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TRAINING appreciation of the effort and dedication they have invested in them. We know, then,that our members and many other employers have a very positive influence on their apprentices. This project will allow us to capture the positive things our employers do, and look at ways to assist other employers to take these up. A further aim of the project is that our examples of good practice can then be shared across other industries. This project contributes to other ongoing initiatives that support and encourage apprentices and their employers. ALink, Master Builders’ apprentice brand, plus our Apprentice of the Year Awards, TAFE Roadshows, and advice regarding wages and job finding, all help to keep apprentices and their employers informed and engaged. We hope that through this project, we may be able to play our part to help apprentices finish their apprenticeships and make a valued contribution to our industry. We would love to hear your views. If you would like to take part, please contact Luba Pavlovic, Master Builder Apprenticeships and Traineeships Completions Officer on (03) 9411 4555
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INSURANCE
Trade credit insurance: helping you sleep at night By Joe Keiper State Manager Victoria, MBAIS jkeiper@mbav.com.au
B
ad debts continue to be a growing problem within the building and construction industry. We’ve seen a number of instances in recent years when contractors have been ‘left in the lurch’ when an unexpected insolvency has occurred. While politicians continue to grapple with the problem, amending existing security-of-payment legislation, introducing project bank accounts and the like, the reality is that none of these remedies will ever truly protect your business if you sustain a significant and unexpected bad debt. MBA Insurance Services has developed a specialist product that addresses the needs of contractors in the building and construction industry. Our trade credit insurance (TCI) is extremely flexible and will underwrite up to 90 per cent of your deemed exposure, offering whole-of-turnover, multi-buyer or single-buyer options. There are no restrictions on business turnover and the credit limits will move as your business changes.
Trade credit policies cover the following:
■ Non-payment of trade debts following a debtor’s insolvency (i.e. receivership, liquidation or bankruptcy) ■ Protracted default (i.e. where the debtor isn’t formally insolvent, but a legal judgement has been issued against them).
Who is covered under a TCI policy?
■ Subcontractors against builders defaulting ■ Builders against principals / developers defaulting ■ Suppliers against builders / subcontractors defaulting.
Key aspects of a TCI policy:
■ It covers only business-to-business transactions ■ The business must have specific credit
control procedures in place and being monitored ■ Claims are only payable 30 days from the insurer’s receipt of the confirmation of the debt from the insolvency practitioner in charge of the failed debtor. If you’ve experienced a significant bad debt issue in the past, or you are potentially exposed to major financial loss from one of your customers, builders, developers, principals etc., you can purchase a TCI policy that is tailored to meet your specific needs. It’s important to understand, however, that TCI isn’t a typical ‘set and forget’ type insurance policy, where you have contact with your
insurer only once a year at renewal time, or when you have a claim. There is regular sharing of information (eg. aged debtor lists) between you and the insurer throughout the year, to ensure that you are managing your debtors in line with the conditions of the policy. Premiums vary depending on the type of business, annual turnover, the coverage required, the deductible you’re prepared to accept, your debt profile, and your history in managing your debtors. For more information, contact one of our specialists at MBA Insurance Services on 1800 150 888.
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LEGAL
By Monique Burns, Solicitor Master Builders Legal Department legalenquiries@mbav.com.au
Prime cost items and provisional sums: what are they and how to use them in your contracts
W
hilst you should always aim to specify all fixtures and items of work in a contract, prime cost items and provisional sum allowances can be useful for situations where this is not possible.
Prime cost item
The Domestic Building Contracts Act 1995 (The Act) defines a prime cost item as, ‘an item that either has not been selected, or whose price is not known, at the time a domestic building contract is entered into and for the cost of supply and delivery of which the builder must make a reasonable allowance in the contract.’ Fixtures and fittings, such as handles, stovetops and ovens, are included commonly as prime cost items within domestic building contracts. An owner may wish to select these items at a date later than when the contract was first entered into. The builder’s profit, supply of materials and installation are included within the contract price for prime cost items.
Provisional sum
The Act defines a provisional sum as ‘an estimate of the cost of carrying out particular work (including the cost of supplying any materials needed for the work) under a domestic building contract for which a builder, after making all reasonable inquiries, cannot give a definite amount at the time the contract is entered into. A provisional sum is an all-inclusive item as it accounts for both the provision of materials in addition to the installation or labour cost. Landscaping is a common example of a provisional sum included in contracts.
How to include prime cost items and provisional sums into your contracts
The law requires that if any prime cost items or provisional sum allowances are included, the contract must contain a separate schedule for each item or sum that sets out: ■ A detailed description of the item or the work to which the sum relates; and ■ A breakdown of the cost estimate for each
item or sum (showing at least the estimated quantities and the unit cost); and ■ If the builder proposes to charge any amount in excess of the actual amount of any increase to the item or sum, how that excess amount is to be determined. In the Master Builders New Homes (HC7) and Home Improvement (HIC6) contracts, you will find these schedules contained at Items 21 and 22 of the Appendix.
Evidence of costs
Under the Act, the builder is required to provide to the owner evidence of costs incurred for any prime cost item or provisional sum. Invoices, receipts or other relevant documentation relating to prime cost items and provisional sum allowances must be provided to the owner as soon as practicable, otherwise the builder could be subject to a penalty under the Act. Typically, copies should also be provided at the next stage payment claim.
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LEGAL
When actual costs differ from allowances
Clause 9.5 of the HC7 and HIC6 contracts provides that when the actual cost is less than the prime cost item or provisional sum allowance, the builder must deduct the difference from the contract price. Conversely, clause 9.6 of the HC7 and HIC6 contracts provides that when the actual cost exceeds the prime cost item or provisional sum allowance, the owner must pay the difference and where specified, pay also the builder’s margin.
Calculation of prime cost items and provisional sums It is not enough to simply hazard a guess when determining the prime cost and
provisional sums to include in a contract. The Act provides that it is an offence to include an allowance that is less than the reasonable cost for supplying the item. Reasonable care and skill must be undertaken by the builder to ensure that the figures are as accurate as practicable at the time. Note that under section 20 of the Act, the builder warrants that any provisional sum has been calculated with reasonable care and skill, taking into account all information reasonably available at the date the contract is made, including the nature and location of the building site. In addition, the builder should aim to include as much detail as is practicable when describing these items. This allows for greater transparency and limits
ambiguity which may lead to disputes during and after works are complete.
Key message
It is always preferable that where an item or a component of work is known, that these details be clearly specified in the contract. Accordingly, prime cost items and provisional sum allowances should be used only in circumstances where at the time of entering into the contract, the builder, after making all reasonable inquiries, cannot give a definitive amount for that item or component of work. Importantly, where prime costs and provisional sum allowances are used in a contract, the correct procedure for selection and claiming payment must be followed or else penalties and/or disciplinary action may result.
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INDUSTRIAL RELATIONS
By Daniel Hodges Head of Industrial Relations dhodges@mbav.com.au
A
ttracting the best and brightest to our industry in order to help address growing skill shortages is a major challenge confronting the Victorian construction industry over the coming decade. With a growing population and a $9.6 billion per annum State Government infrastructure agenda, Deloitte Access Economics forecasts
Why a focus on the rule of law is essential for the future of our industry that total employment in the Victorian construction industry will require over 64,000 new entrants over the next decade – including over 10,000 carpenters and joiners and nearly 2000 bricklayers and stonemasons. Whilst it is widely accepted that structural reform to the current apprenticeship system and current working arrangements form part
of the solution, the need for ongoing cultural reform to the Victorian commercial construction industry is rarely acknowledged as a major contributing factor to why, despite being one of the highest paying industries, we struggle to attract women and young Victorians to our industry. At just 9.5 per cent, the construction
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INDUSTRIAL RELATIONS
industry has the lowest share of female workers it its workforce of all industries – with the next lowest industry (mining) at 22 per cent. Sadly, this damning statistic is reflective of an industry marked by an anachronistic adversarial culture, driven by the most ‘militant’ trade unions – to whom the rule of law is something to be ignored when it suits, with subsequent fines just a ‘cost of doing business’. As a result, bullying, thuggery and intimidation remain commonplace – as do unlawful discrimination, coercion and other illegal activities that disrupt the workplace. It is therefore of no surprise that women and young Victorians appear to consciously avoid construction, preferring those industries that can provide more harmonious workplace environments,- where an individual’s rights are recognised through a respect for the rule of law. In this context, the critical role of the Australian Building and Construction Commission (ABCC) needs to be better
understood. The ABCC is tasked with promoting the main object of the Building and Construction Industry (Improving Productivity) Act 2016 (the Act), which is focused on providing an improved workplace relations framework to ensure that building work is carried out fairly, efficiently and productively for the benefit of all building industry participants. The Act aims to achieve this main objective by a number of means, including: ■ Promoting respect for the rule of law ■ Ensuring respect for the rights of building industry participants ■ Ensuring that building industry participants are accountable for their unlawful conduct ■ Improving work health and safety in building work ■ Encouraging the pursuit of high levels of employment in the building industry, including by encouraging youth employment with an emphasis on engaging apprentices. No reasonable person with a genuine concern for our industry’s future can
legitimately question these objectives – nor by extension, the need for the ABCC to deliver on its mandate. With Mr Stephen McBurney appointed as the new head of the ABCC in February this year, a window of opportunity has presented itself for all building industry participants to engage constructively on these important issues. A continued refusal to do so by building industry unions will likely result in a continuation of the status-quo, in terms of both culture and by extension, industry demographics. In recent times we have seen encouraging signs from building industry unions such as the CFMEU, in publicly recognising the need to encourage more women into the industry. The challenge for the CFMEU, and for the Victorian commercial construction industry as a whole, is to ensure that these words result in meaningful actions. Bringing the necessary cultural reform to the industry through the promotion and respect for the rule of law is an essential step to this important end.
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FINANCE
By Harry Pontikis Manager, MBA Financial Services harry@mbafinance.com.au
Is it time to start your own business?
W
orking as a tradie in the building and construction industry provides you with a wide range of opportunities, experience and jobs. Whether it’s doing a bathroom renovation or helping to build the Metro Tunnel, Victoria is certainly the place to be when it comes to construction. You are also able to add to these opportunities by demanding a great wage, time off and lots of additional perks like having the skills, knowledge and networks to do your own home renovation with a distinct advantage over the average person. To be a young tradie is to live a great outdoor life, be physically active and be surrounded by like-minded men and women. That said, there will likely come a time when being on the tools has taken its toll, and your body will start to recover from physical effort less readily. This may be the trigger to start your own business, thereby giving you more control over the projects you run, the people you work with, the jobs you take on as well as more income and freedom. The reality is that shifting from life as a tradie to running your own business,
becoming a licensed builder and running your own company is a massive transition. These are the five areas to consider when making this move:
1. Ensure you have the technical skills. Learning while being paid by a company is a great foundation. Knowing the tips and traps involved in all aspects of construction and having a supervisor mentor you as you rectify defects and build houses or apartments can be very rewarding. Before you decide to go out on your own, be an expert in your trade; maybe even take a supervisory role for a period of time to identify the different skills required to get results through the eyes of other people. Only once you have the technical experience and expertise should you consider moving forward with starting your own business and getting your builder’s license. Organisations like Master Builders can assist you with this.
2. Have a plan. Spend a day designing your business. Just as a project needs a program and plan, so too does your business. The plan will be a living document, evolving, changing and adapting to the real environment but it will also keep you focussed on the important things – like the financials! There are many organisations that can help you with your plan but make sure you use a reputable and experienced one that specialises in the building industry. Don’t forget to develop a ‘unique sales proposition’ – the reason businesses or consumers will choose you over someone else), finance projections, skill requirements and a section on staff. Most important of all is the financial component; having a cash flow forecast is critical to the survival of your business, whereas the profit is as important to its long-term viability.
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FINANCE 3. Have a marketing plan. Having a plan that identifies the types of jobs and clients you are equipped to handle and ones which pay the margins you require is very important. Saying that your marketing strategy relies on ‘word of mouth’ and referrals is unacceptable; it’s a random, uncontrolled and unsustainable way to run a business. You need to have a marketing strategy that generates enquiries when you want them and of the type which are valuable to you. This also involves having an online presence and a brand which is representative and meaningful to your clients. Once again, seek expert advice to assist you with this area of your business.
4. Know what you do well and focus on it! Stating that you do bathroom and kitchen renovations, new builds, dual occupancies and developments is not an acceptable proposition. You need to know what you are good at,
what you are able to comfortably provide without putting excess financial strain on your business and make the profit required. This will also give you a good reputation and leave you with satisfied and happy clients, helping you to build a huge book of testimonials for your website.
5. Become a ‘people person.’ Become focussed on your team irrespective of their position as a subcontractor or wage-earner. Focus on recruiting people who add value to your business, have the right outlook on customer service and are focussed on delivering a quality product. Your team will either make you a lot of money or send you broke; knowing how to motivate them and keep them focussed on outcomes and deliverables will drive your business forward. Having a good team will allow you to spend time on your business rather than just in your business. The processes, procedures you should have in place will help guide them to do their job and your company’s focus on the culture and values will drive them to do a great job.
6. Know your obligations. Know your obligations to your staff to keep them safe. Know your obligations to your clients, to the industry, to the bank, to the insurance company. Know your obligations to the ATO and, most of all, know your obligations to yourself, your family and to the success of your business. Have a plan in place to be surrounded by experts who can help you achieve these obligations.
7. Get support. If this all sounds a bit daunting, know that help is out there for you. Join an industry-focussed organisation like Master Builders and engage the guidance and expertise of a business-coaching firm like Acclaimed Results or the multitude of other reputable, construction-focussed coaching companies. Don’t be put off if this sounds too hard; you just need to put in the time to build your business rather than just building people’s homes and get help managing your business.
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NEWS
New building regulations come into effect on 2 June
T
he new Building Regulations 2018 were gazetted on 27 March 2018 and are due to come into effect on 2 June 2018. The regulations have been revised so that all regulation numbering has changed. The Department of Environment, Land, Water and Planning (DELWP) has issued further information about the changes, including a building regulations overview, a summary of changes and a regulation number finder, each of which is available on the DELP website at www.delwp.vic.gov.au. DELWP has identified 10 key areas of regulatory change, and summarised those changes as follows: 1. New forms and further requirements to make sure that the permits, orders and notices include the information that is needed. 2. The Regulations have been modernised for the electronic use of documents for permits. 3. Updated requirements for the chief officer, RBSs and building practitioners in relation to documenting performance solutions. 4. New building permit reporting requirements commencing on 1 July 2019. 5. New obligations for the RBS to provide notice 30 days prior to a building permit lapsing to minimise lapsed permits. 6. Clear obligations on the RBS and the owner to inform the adjoining owner about protection work. 7. Introducing a new mandatory notification stage and inspections if the building work includes fire and smoke resistant building elements, which are lightweight construction in multi-storey residential buildings, and service penetrations in multi-storey residential and healthcare buildings. The Regulations also clarify the prescribed mandatory notification stages for demolition work or the construction of a pool. 8. The Regulations clarify the obligations of owners in relation to ESM maintenance, and encourage the uptake of maintenance schedules to simplify information for the owner. They also clarify the notification requirements in relation to pool barriers. 9. As-of-right construction of a Class 10a building with a floor area not exceeding 10m2 on undeveloped land. 10. Formalising the process for granting a determination to treat two or more allotments as a single allotment for the purpose of a building permit application. Master Builders Victoria has notified Planning Minister Wynne about its concerns relating to the unnecessary changes to
regulation numbers that are likely to impose burdens on the industry – for practitioners, trainers and other industry stakeholders. Master Builders has also expressed concerns about the new onerous mandatory inspection stage for fire and smoke resisting building elements. These concerns have not been
addressed in these changes. Master Builders will provide further information and updates as they are released by DELWP and the Victorian Building Authority (VBA), but in the interim if you have any urgent queries, please contact VBA on 1300 815 127.
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NEWS
CFMMEU ‘super-union’ amalgamation takes effect
O
n 6 March 2018, the Fair Work Commission issued an order fixing 27 March 2018 as the Amalgamation Day for the CFMEU, MUA and TCFUA. Whilst subject to an appeal that was heard on 9 April, the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) is now a reality. Master Builders is extremely disappointed that despite intense lobbying on behalf of the industry, the Australian Parliament was ultimately found to be unwilling and/or unable to pass the necessary legislation in time to ensure that a merger of this nature was subject to a genuine public interest test. The need for a public interest test should be obvious to anyone with even the most basic understanding of the extraordinary and
continuing contempt for the rule of law shown by the CFMEU in particular. The cost of this unlawful conduct is not just felt by those subjected to the thuggery, bullying and intimidation that all too often accompany it; history shows that such conduct also costs the taxpayer and cheats the community out of much-needed public infrastructure, such as schools, roads and hospitals. Master Builders will continue to lobby for the passage of the Fair Work (Registered Organisations) Amendment (Ensuring Integrity) Bill 2017, which also contains new
provisions that would disqualify union officials from holding office, or standing for office, should they be found to have deliberately broken workplace laws, not acted in members interests, or not be fit and proper people (for example, having broken a criminal law) – as well as new provisions relating to deregistration. Master Builders will also continue to work closely with the ABCC and to continue to advocate their need to be sufficiently resourced to perform their role as industry regulator.
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NEWS
Is cross-laminated timber an answer to industry change?
T
he construction industry has been historically slow to adapt to change. Industry acceptance of innovation accelerates where there is significant return on investment and persuasive change factors include time, quality and cost efficiencies. The notion of industry innovation and the challenges of successful market penetration is intriguing, particularly when it comes to cross-laminated timber (CLT). With innovative CLT technologies, cost and time savings can be enhanced by standardising the CLT panel manufacturing process. Standardisation decreases complexity, resulting in fewer computer numerical control (CNC) tooling changes. This has the domino effect of lessening the need for manual handling and reducing machine downtime. There is a risk, however, that standardisation could result in repetitive, overly-simple designs perceived as ‘bland’ by designers and consumers. Intuitively, standardisation seems counterproductive to the very disruptive and creative nature of innovation. Can CLT successfully negotiate this paradox? If we think about innovation as ‘change
that adds value’, then CLT has tremendous promise. One only has to look at the rapid change to construction codes around massive timber construction globally to acknowledge there is great hope offered by this technology. Technologies such as CLT change the traditional, fragmented process of building. In a CLT build, clients, suppliers, builders, architects and engineers collaborate from the outset. There is joint understanding upfront that enables seamless design, production and installation of the build. Depending on context and budget, cost and time savings come from utilising standardised modules and panels in creative combinations. With concrete and steel, further inventive opportunities arise. Engineered products such as CLT require precision in manufacture and installation, with the effect of up-skilling workers in quality capability processes. CLT panels can be pre-manufactured, flat-packed and easily transported, to be installed logically and swiftly on site. This is particularly useful during projects like school renovations or constructions that have constrained timetables and site access. CLT provides an innovative solution to an intricate dilemma. Designed as a structural product first and
Need an extra pair of hands occasionally? If you’d like to have an extra pair of hands to help with your business, want to be involved in the career development of young people in your community, but can’t commit to hiring a full-time apprentice, Master Builders may have the perfect option for you. We have secondary-school students, completing building-related subjects in trades such as carpentry and joinery, who are looking to undertake work placements in the construction industry. Placements are typically for one day a week for varied durations and involve
minimal cost to you. These placements not only give students a feel for the workplace and enhance their skill development, but can also give you the opportunity to promote the attitudes and skills you want in your workforce and identify young people with potential for your business. If you are interested in receiving more information, or have availability to take on a student for their on-the-job training, please get in touch with the Careers Team on (03) 9411 4555 or email Imogen Gregory at igregory@mbav.com.au.
foremost, CLT can also ‘look and feel good’. CLT is uniquely sustainable and environmental by nature. Interestingly, use of CLT structurally and as exposed natural timber has proven effective in increasing the well-being of residential dwellers. Other research has shown that CLT technologies improve the overall thermal properties of a building and, subsequently, office worker productivity. Return on investment then, comes not just in cost and time savings for the build, but also for the longer- term use of a structure. There is still work to be done to pave the way for industry change and acceptance of innovations like CLT. Education is key. Consumers need to understand the overall value and elegance of products such as CLT. Enlightening financial institutions and insurers of the new build processes created by new building systems, to improve the timing of lending and funding payments, is part of the solution. Also important is pressing for leadership from legislators to change regulatory roadblocks. Technologies such as CLT that are innovative but capable of being standardised will do much towards delivering affordable and sustainable accommodation into the future as well as up-skilling the industry.
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NEWS
From the regional offices
G
ippsland The lull of the Christmas break has become a distant memory as the local building industry builds back up to full speed. It certainly feels like a fresh start to the year with our brand-new logo signage being installed at the Traralgon office. On Monday, 29 January, sixteen nervous young apprentices attended Regional Apprentice of the Year Interviews in our Traralgon office. Our judges were Ingrid Mountford, Imogen Gregory, Rod Ware and local builder Luis Castagna. They were extremely impressed with the quality of this year’s candidates. Much deliberation was done at the end of the day to determine winners.
Bendigo
Our office has welcomed a new member. Colin Bright and wife Rebecca welcomed baby Pippa in February. Lyn Lowndes, who has been managing the Bendigo office since June has now been appointed Administration Manager of the Geelong office as well. Busy times ahead for Lyn. Construction of the 65-metre air link bridge at Bendigo Health commenced in November, 2017. This bridge will link the helipad and
Air link bridge at Bendigo Hospital carpark to the new Bendigo Hospital site. It’s a huge job and all roads around the area were closed during the construction of the bridge. Once the roads were re-opened it proved to be an exciting time for Bendigo locals as a lot of people were eager to get a look at the new Bendigo icon. The Bendigo Stadium Expansion project is
still under construction and is taking shape quickly. The stadium is still in full use, which means works are always nice to keep track of. The RSL Memorial revitalisation project is underway and attracts a lot of onlookers due to the location of the building in the middle of the Bendigo CBD.
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MASTER BUILDERS VICTORIA
SOCIALS
MASTER BUILDERS
OUT & ABOUT
Ballarat apprentices Aaron Sedgwick and Mitchell Gervasoni receive kudos from CEO Radley de Silva and President Melanie Fasham.
MASTER BUILDERS VICTORIA
43
SOCIALS
Young guns Elliot Massina, Cory Morgan and Sam Spedding clean up as Bendigo’s best apprentices.
Western apprentice winners Daniel Nicholson congratulations from Master Builders staff.
and
Stewart
McCann
receive
44
MASTER BUILDERS VICTORIA
SOCIALS
Master Builders CEO Denita Wawn discusses cooperation and collaboration with the Victorian membership.
The Hon Matthew Guy opens the industry conference discussion on 1 March.
MASTER BUILDERS VICTORIA
45
SOCIALS
North East apprentice winners Joseph Brakels, Seth Diffey and Patrick Burke display their awards.
Apprentices Craig McCormack, Samuel Hogan and Corey Van Huerk line up for a victory portrait in Gippsland.
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MASTER BUILDERS VICTORIA
MEMBERSHIP
MASTER BUILDERS VICTORIA
51
MEMBERSHIP
Profile: Stormtech MM&S MEMBER SINCE SEPTEMBER 2017
I
n 1989, a young man in a wheelchair had a simple request – to shower in privacy without his carer. The architect tasked with finding a solution turned to John Creighton from Stormtech for help. John knew creating a hobless shower required a unique grate unlike anything on the market. He set to work inventing a drain allowing easy access for the wheelchair into the shower. From this simple request the Stormtech linear drain was born. Now used in not only bathrooms but thresholds, paved areas, driveways and pools, Stormtech grates and drains are known for their sleek design, innovation and practicality. With teams throughout Australia, Stormtech is committed to supporting and empowering all employees. One such team member is Rochelle Ramage, a sales representative for Stormtech working across Melbourne. “While studying interior design I worked part-time at Reece to gain insight into the industry,” Rochelle says. “I loved working in the showroom at Reece and decided to stick with sales as it combined my love of interiors with helping customers select products for their bathroom. My experience in sales and my design background then led me to a position as a sales representative with Stormtech. It’s interesting how life can lead you down a path you didn’t expect. I certainly never expected studying interior design would lead me to where I am today, but I am very glad it did.” “I have worked for Stormtech for over two years,” she says “It’s the perfect role for me given it combines my experience in sales with my experience in the plumbing industry. I was thrilled when they decided to employ me, and I haven’t looked back. “In a typical day, I call into several plumbing stores in a particular area. I usually take a different product each time and train staff so they have the most up-to-date information. I also answer emails and phone calls from the stores I look after. If a plumbing store has new staff, I will train them on our range so they can confidently sell to the retail customer. We look after builders as well by going out to sites to measure up, if needed, and answer installation queries.
“You meet some amazing people as a sales representative and every day is different. I love training staff members in the stores I look after and seeing their confidence and knowledge grow. You build up relationships over time which is such a great part of the job. “There are challenges, however. Like any sales role, it is all about multitasking and making sure to do it all as promptly as possible. I’d also have to add traffic! Driving around Melbourne every day certainly teaches you to have some patience. In her role, Rochelle has the opportunity to witness trends in the industry, from multiple perspectives. “Certainly with regard to bathroom and kitchen trends we are seeing a lot of metallic and bronze tones in hardware, such as taps. Stormtech now offers all of its products in a variety of warm bronze finishes as well as rose gold and brass. These coloured finishes will add an elegant touch to any design as well as complementing the other features in the room.”
Stormtech sales representative Rochelle Ramage
Featured products in the Stormtech line Page 51
52
MASTER BUILDERS VICTORIA
MEMBERSHIP
Profile: JAD Homes HOUSING MEMBER SINCE 2010
J
AD Homes Managing Director, Julian Dall ‘Olio had big career goals at an early age. As a young builder with an aspiration of becoming a building developer, Julian found the Master Builders legal department to be invaluable. Julian started a carpentry apprenticeship at 16. Once qualified, he worked on commercial building sites but soon went on to work with family in the domestic industry. There he gained experience working with different trades. “I always had ambitions to be a builder, to be my own boss. I just loved building houses,” he explains. Julian came to Master Builders when he decided he wanted to get his Domestic Building Manager registration (DB-M) at 23-years-old. “I wanted to get my own projects, aim for the top and be a developer,” he said. “I did my research at the start and I wanted the ongoing support that Master Builders continues to provide. That’s a big help for me, just knowing I can pick up the phone and get advice anytime.” The legal department has been a priceless resource for Julian who describes Head of Legal, Angelo Simonetto as a ‘mentor’. “Angelo has helped me a lot with getting my registration. I had a bit of a hiccup with my application and Angelo helped me boost my knowledge and ensure that I was up to scratch with everything, so I was able to get my registration,” Julian said. Julian used Master Builders contracts and regularly calls on the legal department for contract advice. “Contracts are a very important part of the building process and can easily bring you undone,” Julian said. “These days being a
registered builder is very risky; everything needs to be documented.” “Angelo has taught me everything I know about contracts. If I have a job and have a question about my contracts, I’ll just call Angelo or flick it to him in an email and ask him to have a look at it. He’ll then just ask me to make any changes or make changes for me and send it back. Angelo helped me when undertook my first New Homes contract with an owner,” he said. “He clearly explained how to best use prime cost and provisional sum allowances in my contract as well as how to correctly complete variations requested by the owner, ensuring that I get paid in-full and on-time.” “I have even learned that should a dispute arise, Master Builders has an excellent selection of external lawyers on their panel who can help and are experts in building and construction law and are available to us members at very competitive rates.” “I’ve been extremely fortunate in that I have never had to pay for any of the legal advice I have obtained through Master Builders. The beauty of your membership is the priceless advice, constant support and brilliant service they offer.” “The help I’ve had from Angelo, I can’t explain how much he’s helped me. He’s more of a mentor for me, just a great relationship and support.” Julian has also utilised other Master Builders products and services including legal seminars, training and insurance. “I like the fact that Master Builders is a one-stop-shop for everything. They have everything I need to keep me up-to-date with changing legislation. That’s very important, it’s just so crucial these days.”
Builder Julian Dall ’Olio and two of his completed homes in Doncaster.
MASTER BUILDERS VICTORIA
53
MEMBERSHIP
MASTER BUILDERS VICTORIA
55
MEMBERSHIP
WELCOME TO OUR
NEWEST MEMBERS MASTER BUILDERS IS PLEASED TO WELCOME THE FOLLOWING NEW MEMBERS WHO JOINED THE ASSOCIATION IN JANUARY AND FEBRUARY. CONGRATULATIONS FOR JOINING THE MASTER BUILDERS ASSOCIATION OF VICTORIA.
Associate
■ Archivision (Vic) Pty Ltd ■ Waddah Weld-Ali
General Contractor
■ Arden Cleanrooms (Australia) Pty Ltd ■ Aspekt Pty Ltd ■ Midson Construction (Vic) Pty Ltd
General Contractor Provisional
■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
Project One Group Pty Ltd Housing Aubix Pty Ltd BHV Construction Pty Ltd Build Effect Chaudenay Pty Ltd Crisp Green Homes Edina Building Group Pty Ltd EFC Enterprises Pty Ltd Essendon Scaffolding Solutions Pty Ltd F & M Pascuzzi Pty Ltd Fanfulla Constructions Gemm Construction Pty Ltd KB Living Pty Ltd Oscar Builders Pty Ltd Parr Building Services Paul Kevin Constructions Pty Ltd PYP Constructions Pty Ltd Red Dog Property Services SEN Built Sinclairs Building Concepts TWD Constructions Pty Ltd
Housing Provisional ■ Aspire Built Pty Ltd
■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
B A Vagg Construction Pty Ltd Bin Rong BJC Concepts Build Design Develop Fu Khan Construction Pty Ltd Hedra Abdelmalak Hi-style Building Group Pty Ltd Homes Ahead Pty Ltd James Gregory Abbott Kerrin Sciberras Kris Nadalin LG Creative Kitchens Liam Bowman M. Guest Carpentry Matthew Wallace MJK Carpentry Pty Ltd Oviya Homes Pty Ltd Pasquale Prossomariti Richard Hicks RLG Construction Stuart McLay Troy Gudgeon Yashraj Homes
Housing Sub-Contractor ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
Amery Construction Enterprises B.D.G.S. Pty Ltd Ben Wallace Carl Sartori CBK Construction Group Chris Brew Click Clack Cabinets Constructive Enterprises Pty Ltd Frankston Fencing Grayson Carpentry Services
■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
Inner Melbourne Landscapes James Guarnaccia Jamie Bobbin Melbourne Roof Care & Gutters MRI Carpentry Pty Ltd Stone Edge Landscapes TA Edwards Bricklaying Pty Ltd The Nature Group Signature Division Pty Ltd Ultimate Aluminium Windows Pty Ltd Ultra Finish Roofing Yournest Property Inspections Zeeva Constructions
Master Tradesman
■ Sheds N Homes Geelong
Materials, Manufacturing & Supply
■ ■ ■ ■
Caesarstone Australia Pty Ltd Dincel Construction Systems Pty Ltd Festool Australia Tyre Stewardship Australia Limited
Specialist Contractor
■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
A2Z Build Pty Ltd Active Display Group Alfamex Pty Ltd Asos Constructions Pty Ltd Build 101 DezCon Studios Duggan & Hanlon Constructions Pty Ltd Dummet Brickworx Oak Park Tullamarine Pty Ltd Skyhooks Solutions Pty Ltd Top Interiors Pty Ltd Western Equipment & Hire Pty Ltd
56
MASTER BUILDERS VICTORIA
MEMBERSHIP
MASTER BUILDER
MEMBER MILESTONES M
aster Builders values loyalty to our association and awards certificates to members at milestones of 10, 15, 20 and 25 years, and plaques at 30, 40 and 50 years of continuous membership. We would now like to recognise and thank the following members who have achieved these milestones between 13 January and 5 March 2018. We appreciate that many members have continuous years of service that fall between these milestones and hope that you understand that we award certificates and plaques only for the milestones mentioned. If you are a long-term member we thank you for your commitment and look forward to recognising your loyalty when you receive your next milestone certificate or plaque.
50 Year Plaque
Susskind Builders Pty Ltd 40 Year Plaque Berger Nominees Pty Ltd Kevin P Lee M & L Nardella Home Builders Pty Ltd Martino & Pinto Pty Ltd PF & BJ Neate
30 Year Plaque
Burbank Homes Easternway Constructions P/Ltd Gorrie & Slater Pty Ltd M W L Builders & Renovators P/L Mills Builders Pty Ltd Nation Builders Pty Ltd Pascuzzi Constructions Pty Ltd Quantum Homes Romco Master Builders Pty Ltd Searle Bros Taylor Made Extensions Pty Ltd
25 Year Certificate
A J Building & Construction Pty Ltd ATV Constructions Pty Ltd Peter Rogers Constructions Pty Ltd T D & B M Horsley Pty Ltd Truewood Constructions Pty Ltd
20 Year Certificate
APA Group for Australian Gas Networks Limited Atcorp Building & Maintenance Pty Ltd B & B Roberts BFN Developments Eastern Roofing Pty Ltd G & S Wilson Building G J & T A Menhennet Pty Ltd M R & V J Parsons M W Cook Mirvac Constructions (Vic) Pty Ltd Paul Graham Troubleshooters Available Williams Joinery & Glass
15 Year Certificate
A B S Alma Building Services Pty Ltd Ahmet & Sevgi Bulut Bel Air Property Consultants Pty Ltd Breakwater Kitchens Pty Ltd C O R Projects Pty Ltd Craig W Dye Discount Fencing E & K Regli Elite Building & Maintenance Pty Ltd Exar (Vic) Pty Ltd Faculty Shopfitting Felcon Building Pty Ltd Jamie Mitchell Kendeo Enterprises Pty Ltd Lloyd Group Pty Ltd Martin Bates
Mattlach Pty Ltd Renascent (Victoria) Pty Ltd S G A Engineering (Aust) Pty Ltd Select Shopfitting Pty Ltd SpeedPro Industries Pty Ltd Storebuild Australia Pty Ltd Tradecraft Building Services Pty Ltd
10 Year Certificate
All Suburbs Building Contractors Andrew John Stanley Ballarat Health Services Brycon Pty Ltd Chris Ross Concrete Pumping Pty Ltd Commercial Aquatics Australia Daniel Maynard DNJ Building Group G J Gardner Homes Mildura Go Pro Constructions No 1 Pty Ltd Gregory Benjamin Margery Haas Kaplan Heyward Constructions Pty Ltd ID Home Constructions Pty Ltd Inline Building Ivor R Patterson Jetmaster (Vic) Pty Ltd Kadabra Pty Ltd Loaram Constructions Pty Ltd Marinelli Constructions Pty Ltd Marino Custom Homes Mimosa Homes Pty Ltd Peter Woodcock Pyper Projects Pty Ltd Simon Roberts Surf Coast Shutters and Shade Pty Ltd Sustainabylt T M & H Timber & Hardware Pty Ltd Victorian Building Authority
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58
MASTER BUILDERS VICTORIA
MEMBERSHIP
Master Builders clothing and supplies By Laura Jubb Reception/Retail Coordinator ljubb@mbav.com.au
N
ow that our new Master Builders logo has been introduced, you will notice contracts and documents adopting a new appearance as well, giving them a fresh, updated feel and a logo recognisable throughout Australia. The New Homes and Home Improvement contracts are already updated and are now in stock. They also incorporate the legislative changes that came in last year, as well as a couple of minor updates to clauses. Consult our new website, or call us if you would like further details about these changes. All other contracts and branded stationery will follow during the next few months. We have also taken the opportunity to refresh our clothing range. We extend our thanks again to the members who helped by providing valuable feedback on changes they wanted to see. The new range is now in stock, The new range includes a selection of polo shirts and t-shirts available, as well as a business shirt, vests, jackets and caps. The Master Builders brand has long been associated with quality workmanship and professionalism. If you are one of the many members who wear our clothing to help set you apart from the competition, we’re confident you’ll love the new range. We are also aware that many members like to have their own logo embroidered onto our clothing as well, or prefer to have our logo on your own clothing or other marketing material. If so, please call us and we will supply you with the design files you need. For all our latest clothing and contracts, please visit our website, visit the shop at 332 Albert Street, East Melbourne, or visit the website at www.mbav.com.au Products already featuring the new branding: New Master Builders clothing - now in stock New Homes and Home Improvement Contract - now in stock Domestic Cost Plus - now in stock Minor Works contract - now in stock OHS site signs - now in stock Handover kits - coming soon Other contracts and stationery - coming soon
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MASTER BUILDERS VICTORIA
MEMBERSHIP
By Laura Luvara Strategic Communications Advisor
W
hen we last spoke with carpentry apprentice Hamish Rose, he was about to embark on the journey of a lifetime to learn new building techniques in Nepal and Canada, thanks to the Master Builders Foundation and an Australian Overseas Foundation scholarship. Since then, Hamish, 2017 State Apprentice of the Year, has travelled to Nepal, helped build a school, proposed to his girlfriend Bec and is now in Canada working on a maintenance contract with Sun Peaks Ski Resort. He and Bec planned to move to Vancouver Island once the contract was complete. His initial journey to the Kathmandu community of Bupsa was a long one. This remote village survives as one of the stops en route to Mt Everest and lacks many basic amenities like comprehensive medical care and clean water. Hamish was on a mission to help rebuild a
Catching up with carpenter Hamish Rose
school damaged by earthquake in 2015, a project for which he had helped raise funds through Ballarat Grammar School. “The school was very much taking shape – maybe 95 per cent built by hand using 90 per cent local resources no more than a kilometre away from site,” Hamish explained. “The timber was from trees 20 metres away and was hand-milled to size.” “The tools they used were brilliant; extremely basic, but did the job for sure,” he said. “They have handmade planes, hammers and chisels and it was awesome to watch them and help, as well. I often had my tools going and it seemed they really enjoyed them but would still finish off with their own.” The school was opened on 19 November 2017, a moment Hamish described as one of the most rewarding experiences he’s ever had. “I am extremely proud of my achievements and honoured by the reception I received,” he said.
Apart from learning new building methods and techniques, Hamish said he was able to develop his skills in tackling cultural and language barriers. “I learned to build from sustainable local resources which I believe, and hope, is the way of the future in Australian residential construction,” he said. What really struck him was the extensive use of timber and how well the architecture and construction techniques had been adapted to the extreme weather conditions. “It has been amazing to see how the buildings stay warm while the weather outside is -28C,” he said. Hamish has maintained contact with the Bupsa community and Ballarat Grammar to work towards future projects, such as providing clean drinking water and an improved pathway to the school.
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MASTER BUILDERS VICTORIA
CALENDAR OF EVENTS
MASTER BUILDERS 2018
EVENTS CALENDAR JUNE
01 | REGIONAL BUILDING AWARDS (NORTH EAST) Commercial Club, Albury 05 | PD WORKSHOP Master Builders, East Melbourne 13 | BALLARAT SECTION MEETING TBC 15 | REGIONAL BUILDING AWARDS (SOUTH WEST) The Pier, Geelong 19 | BOARD OF MANAGEMENT Master Builders, East Melbourne
20 | MORNINGTON GROUP MEETING Frankston 20 | GIPPSLAND SECTION BREAKFAST MEETING Traralgon 20 | WIMMERA SECTION MEETING Horsham 22 | REGIONAL BUILDING AWARDS (NORTH WEST) Quality Resort all Seasons, Bendigo 27 | TRADE NIGHT - ROWVILLE Mulgrave Country Club, Wheelers Hill
JULY
06 | REGIONAL BUILDING AWARDS (SOUTH EAST) Premier Function Centre, Traralgon 10 | NORTH EAST SECTION MEETINGEvent Name (Bold Tag) Sebastians, Shepparton 11 | TRADE BREAKFAST - BAIRNSDALE Bairnsdale RSL 17 | NORTH WEST SECTION MEETING Hotel Mildura, Mildura 18 | BENDIGO SECTION MEETING Brougham Arms Hotel, Bendigo
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CALENDAR OF EVENTS
24 | GEELONG SECTION MEETING Grovedale Hotel, Geelong 24 | LEGAL SEMINAR Master Builders, East Melbourne 25 | TRADE BREAKFAST- BALLARAT Mercure Ballarat Hotel and Convention Centre
AUGUST
10 | EXCELLENCE IN CONSTRUCTION
AWARDS Crown Palladium, Southbank 15 | TRADE BREAKFAST GEELONG Buckley’s Entertainment Centre, Geelong 15 | AGM BALLARAT SECTION MEETING TBC 15 | MORNINGTON GROUP MEETING Frankston 21 | BOARD MANAGEMENT MEETING
Master Builders, East Melbourne 22| TRADE NIGHT BENDIGO Quality Resort all Seasons, Bendigo 22 | GIPPSLAND SECTION MEETING Warragul 28 | COUNCIL OF MANAGEMENT Master Builders, East Melbourne 27 | GREEN LIVING CONFERENCE BLSC, South Melbourne
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WHAT’S NEW
AFS launches new patented rediwall® speedy-snap-inTM range including revolutionary ezy-fitTM corner panel Australian permanent formwork system manufacturer AFS has launched its new versatile rediwall® speedy-snap-inTM range. “Our new rediwall® speedy-snap-inTM system is the simple, cost-effective answer to conventional concrete and masonry,” explains Steve Darwell, CSR General Manager New Business Development. “The new lightweight PVC panels simply snap together by hand and are then ready to be core-filled. You don’t even need a formed deck for installation. The speedy-snap-in system includes a patented revolutionary 90 degree ezy-fitTM corner panel. The cover section is removable, which allows complete unobstructed access for the trouble-free installation of reinforcement bars. The rediwall® speedy-snap-inTM system comes in three panel sizes – 110mm, 156mm and 200mm. Combined with new ezy-fit corner panels, the rediwall® speedy-snap-inTM system is extremely versatile. Its clean, even and UV and waterproof surface offers a superior gloss finish, which in many applications doesn’t require any finishing.
The most comprehensive termite warranty in Australia If your home has a Kordon® Termite Barrier installed* (*full installation), you can choose to activate and be covered by the Bayer Protection Program. You will be protected by an exclusive $1 million warranty! It’s easy! The Bayer Protection Warranty starts with an inspection of the home by a Bayer Accredited Timber Pest Inspector. If the home is termite-free, and possible conditions which may be conducive to termite attack are addressed, your Bayer Protection Warranty can be renewed. The same inspection takes place each year to give the homeowner total termite protection. This warranty can be renewed annually (fee applies) for the life of the structure. The Bayer Protection Warranty covers homeowners for up to $1 million worth of termite damage due to product failure or any other means of termite entry. Activate your Bayer Protection Warranty by visiting www.kordonwarrantycentre.com.au For further information on the Kordon Termite Barrier, Bayer Protection Warranty and Frequently Asked Questions visit www.kordonwarrantycentre. com.au or contact the Bayer Protection team on 1800 552 802.
The tough and robust PVC panels are designed with large kidney-shaped holes for better concrete flow during core filling. The shape of the hole in the 200mm panel allows for double or single reinforced steel placement. It also allows single reinforced steel to be offset to one side to further optimise performance. Key benefits • Available in 110mm, 156mm and 200mm profiles • New ezy-fit corner – an industry first • Lightweight panels offering ease of installation – minimal training required • Tough, rigid, durable panels • Precision-extruded components snap into place, automatically interconnecting for rapid assembly • Large holes for better concrete flow • Kidney shaped hole (200mm) for double, single or single offset reinforcement placement • Water resistant • High quality low maintenance surface that in many applications doesn’t require finishing • Range of new accessories • Cut-to-size option to reduce wastage
Bayer CropScience Pty. Ltd., Level 1, 8 Redfern Road, Hawthorn East, Vic. 3123 Technical Enquiries: 1800 804 479 environmentalscience.bayer.com.au Kordon® is a Registered Trademark of Bayer © 2016
CR127369AA
• Applications include basements, party walls, columns, lift shafts, stair wells, retaining walls, retention tanks, service and storm water pits, foundation and landscaping walls
All enquiries please call 1300 727 237