FROM THE CEO AND PRESIDENT

FROM THE CEO/PRESIDENT Building confidence

Welcome to the JulySeptember issue of Master Builder Victoria – the official magazine of the Master Builders Association of Victoria (MBV).

This edition is packed with articles we hope you find of interest and value to you and your organisation.

The theme for this magazine is having confidence in our industry.

As an industry, we have managed to weather everything COVID-19 has thrown at us, including crippling supply shortages and rising material costs. Despite this, our sector has continued delivering building and construction projects for Victorians.

We both hope you enjoy this edition of the magazine.

Excellence in Construction Awards 2022

It has been another hectic few months for the team at MBV. Last month, we held our annual Excellence in Construction Awards night at Crown Palladium to celebrate the best in the commercial construction sector.

Our Excellence in Housing Awards will follow shortly in October.

Everyone should feel very proud of the high-quality work of our members and the exceptional standards we uphold as Master Builders.

As President and CEO, it is a great pleasure to congratulate ADCO Group Pty Ltd on winning the 2022 Master Builder of the Year - Commercial for St Leonard’s College Inspiring Innovations, Brighton East.

This is a terrific achievement for the team and a well-deserved success.

Have confidence in our industry

Much has been written in the media this year about our industry’s “crisis” state. Rising material costs, supply chain delays, and labour shortages have taken a toll on our members. building and construction companies being forced into liquidation.

The vast majority, if not all, of the state’s builders are experiencing a challenge to their profitability.

We are calling it a profitless boom.

However, the number of building and construction insolvencies in 2022 must be put into perspective.

While several high-profile builders have gone into liquidation this year, insolvencies are still relatively low compared to pre-COVID levels.

The building and construction industry recorded 541 insolvencies in 2019.

This dropped to its lowest point of 311 insolvencies at the end of 2020.

Some industry commentators’ claims that “up to 50 per cent of small builders could go to the wall in the next 12 months” do not appear to be based on hard evidence.

We have been forthright in counteracting these spurious claims, including multiple letters to newspaper editors.

MBV has consistently advocated that the best way to protect consumers and help prevent further insolvencies is to protect builders, especially those working in the housing sector.

Many builders in this sector have signed fixed-priced contracts.

Unlike other products like fuel and food, these unforeseen price increases cannot be passed on to consumers.

If builders cannot pass increases onto clients, there is a risk of insolvency, and clients may end up with half-finished homes.

That’s why MBV has continued to advocate to the Victorian Government to include rise and fall clauses in domestic building contracts.

In the meantime, we have continued to urge all clients to be kind and patient with builders and tradespeople – everyone is doing their best in exceptionally challenging circumstances. We encourage all builders and tradespeople to be kind and patient with suppliers.

We remain confident that our industry will overcome these challenges and continue to be the cornerstone of Victoria’s economy.

Reflect Reconciliation Action Plan

We are delighted to inform members that Reconciliation Australia has officially accredited MBV’s inaugural Reflect Reconciliation Action Plan (RAP). Reconciliation relates to strengthening and enhancing the relationships between Aboriginal and Torres Strait Islander peoples and non-Indigenous peoples to foster Australia’s more just and inclusive society.

At MBV, we recognise the importance of reconciliation for the broader Australian

through resilience

community and specifically, the building and construction industry and its importance for our Country’s future.

As the leading voice for Victoria’s building and construction sector, MBV has a crucial role in progressing reconciliation within our industry.

Promoting reconciliation is closely aligned with MBV’s values and purpose of driving positive change and empowering people to build a better future.

MBV will focus on strengthening the connections established with First Nations organisations while also building new partnerships and opportunities for collaboration to continue to progress reconciliation.

A core component of our collaboration with Aboriginal organisations and businesses will be to develop an industry education initiative about the importance of protecting and managing Aboriginal cultural heritage.

MBV aims to promote best-practice approaches and raise Victorian building and construction industry standards.

We are proud to be recognised as a member of the RAP network and look forward to implementing our plan.

A new constitution for MBV

It is our absolute pleasure to notify you that MBV’s new constitution has been certified by Fair Work with effect from 13 July 2022. The approved version of the constitution is now on the MBV website.

It has been a long journey since we began our governance review in 2019, and this represents the culmination of many people’s time and effort. We congratulate all MBV Directors and members for their commitment and determination to leave a legacy of positive change that has set MBV up for another 147 years of representing our members and our industry.

In closing

On a personal level, our team is here to support you. If you need advice on your specific contracts and how to navigate conversations with your clients, please make sure you call our team on (03) 9411 4555, so we can assist you.

We both hope you enjoy the latest edition of our member magazine.

Mark Little, President, Master Builders Victoria

Rebecca Casson, CEO, Master Builders Victoria

Don’t let mould put your project on hold!

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Siniat. Let’s build better together.

For all general enquiries, phone Master Builders on (03) 9411 4555. Or you can contact our key services using the details on this page.

Sydney

Adelaide

Wodonga

Melbourne

OFFICE LOCATIONS

Melbourne

332 Albert Street East Melbourne Victoria 3002 GPO Box 544 Melbourne Victoria 3001 Phone: (03) 9411 4555 Email: mbassist@mbav.com.au

Wodonga

35 Hovell Street Wodonga Victoria 3690 PO Box 700 Wodonga Victoria 3690 Phone: (03) 9411 8070 Email: membershipadmin@mbav.com. au

KEY CONTACTS

Master Builders Victoria CEO Rebecca Casson

Master Builders Victoria Executive Team

Executive Director Strategy, Finance and Operations Michaela Lihou Executive Director Legal, Governance and Training Tristan Moseley Executive Director Policy, Membership, and Communication Megan Peacock Executive Director Advisory and Shared Services Giovanni A. Aberlardo

Master Builders Victoria Directors

Director Marketing & Communications Gavriel Berkowitz Director Business Development & Sales Nat Molinaro Director Master Builders Training Institute Corrie Williams Director Advisory Sam Smith Director IT Phillip Harris Financial Controller Carly Hooke Board of Management

President: Mark Little Deputy President: Geoff Purcell Treasurer: POSITION VACANT Immediate Past President: Richard Hansen Housing Sector Chairperson: Lisa Hollingsworth General Contracting Chairperson: Michael Clemenger Specialist Contractor Chairperson: Ashley Tonkin-Hill Country Sector Chairperson: Stuart Allen Materials, Manufacturers and Suppliers Sector Chairperson: Mark Phillips

Council of Management

President: Mark Little Deputy President: Geoff Purcell Treasurer: POSITION VACANT Immediate Past President: Richard Hansen Housing Sector Chairperson: Lisa Hollingsworth Housing Sector: Pasquale Garofalo General Contracting Sector Chairperson: Michael Clemenger General Contracting Sector: Dale Kennedy General Contractors Councillor: Ashley Levin Specialist Contractor Sector Chairperson: Ashley Tonkin-Hill Specialist Contractor Sector: Gregory Cole Country Sector Chairperson: Stuart Allen Country Sector: David Rowe Materials, Manufacturers and Suppliers Sector Chairperson: Mark Phillips Materials, Manufacturers and Suppliers Sector Councillor: Neil Grenfell