master builder February/March 2014
Housing & Construction Awards entries open
QBCC advertising requirements Survey reveals industry confidence remains strong Changes to superannuation
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Insurance by Master Builders for Master Builders Call your nearest Master Builders Insurance office on 1300 13 13 26, or email insurance@masterbuilders.asn.au. a division of Queensland Master Builders Associa on AFS Licence 246834
QMBA-11926 09_10
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COL OURS
004 002
001
SHALE GREY™
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SIX NEW COLOURS TO CREATE WITH
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GUARANTEED COMPLIANCE In order for any pre-painted steel to meet AS2728 and deemed to satisfy requirements of the BCA, the substrate must meet AS1397. COLORBOND® steel is guaranteed to meet both AS2728 and AS1397.
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003 LONGER WARRANTY COLORBOND® steel now provides a longer warranty* of up to 36 years, backed by BlueScope. Class leading paint technology together with advanced substrate technology ensures better corrosion resistance.
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*Warranty subject to application and eligibility criteria. For full terms and conditions visit bluescopesteel.com.au/warranties. ^Results will depend on level of insulation, building shape and function. †Thermatech® technology is not available in the colour Night Sky®. COLORBOND®, Thermatech®, Coolmax®, BlueScope, the BlueScope brand mark and ® colour names are registered trade marks of BlueScope Steel Limited. ™ colour names are trade marks of BlueScope Steel Limited. © 2014 BlueScope Steel Limited ABN 16 000 011 058. All rights reserved. MBM32857CRF
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Need a new vehicle? Want a fast and simple way to find the best motor vehicle and finance to suit your needs?
Take advantage of Master Builders Fleet Service program – the one-stop-shop for all your motor vehicle needs. We can take care of: •
Sourcing your new vehicle through our extensive range of dealerships
•
Pre-approved vehicle finance, as well as plant and equipment finance
•
Complete vehicle maintenance, service and fuel card program with Caltex.
Let Master Builders help you find and purchase the right vehicle in three easy steps: 1.
Decide what type of vehicle you want
2.
Call Master Builders on 1300 55 11 61 or email cars@masterbuilders.asn.au
3.
Sit back and relax while we take care of the rest.
It’s that easy! Call us today on 1300 55 11 61 or email cars@masterbuilders.asn.au and let us help you find the best deal for you.
QMBA-16362 11-12
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Contents
volume 51 NUMBER 4
SATURDAY, FEBRUARY 1, 2014
Published by Master Builders Queensland 417 Wickham Terrace, Brisbane Queensland 4000 Phone: (07) 3225 6444 Fax: (07) 3225 6545 Email: ask@masterbuilders.asn.au www.masterbuilders.asn.au
10
34
44
Policy & advocacy 14
58
50
The issue of non-conforming
Employment & wages
building products
27
injury
Reports & statistics 16
Survey reveals improving industry confidence and conditions
28
Apprentice rates of pay
Building & planning 30
18
Psychiatric or psychological
Housing recovery alive and
Fixed platforms, walkways, stairways and ladders
well 32
Contracts & disputes 19
Preliminary agreements
26
Cost escalation – residential contracts
Housing & Construction Awards 20
Entries now open
Design and siting standards for class 1 and class 10 buildings
Laws, codes & regulations 38
Contemporaneous notes in disputes
Editor: Christine Barton, editorial@masterbuilders.asn.au Graphic Design: Paula Trousdell, graphics@masterbuilders.asn.au Advertising: Ken Lane, Crowther Blayne Media Specialists, (07) 5553 2804, kenlane@crowtherblayne.com.au Print: Printcraft Distribution: Stand and Deliver
Master Builder is the official magazine of Master Builders Queensland. Master Builders is the peak industry association representing building and construction in Queensland since 1882. We are the voice of the industry. Our services support members to operate professional and profitable businesses that deliver superior quality outcomes to their customers. All advertising and editorial material must adhere to the Master Builders Advertising & Editorial Policy. A copy of the policy can be found at www. masterbuilders.asn.au. Privacy: Master Builders Queensland has adopted the National Privacy Principles published by the Privacy Commissioner and operates in accordance with those principles. A copy of Master Builders privacy policy can be found at www. masterbuilders.asn.au. Disclaimer: Any advice or information included in the publication is given in good faith, but strictly on the understanding that neither Master Builders nor the Editor or any other person or organisation contributing to the publication are to incur any responsibility or legal liability whatsoever (including liability for negligence) should the advice or information be incorrect, incomplete, inappropriate or in any other way defective and all liability is therefore disclaimed. Articles published in this magazine do not necessarily reflect the opinions or policies of Master Builders, its officers and staff. © This publication is copyright. No part of it may be reproduced, copied, stored on a computer, published, broadcast, rewritten for broadcast or publication, or redistributed directly or indirectly in any medium without prior permission from the Queensland Master Builders Association.
Superannuation 49
Changes to Super from 1 January 2014
Front cover: North Queensland Sporting & Community Services Facilities $5 million – $20 million – Carmichael Builders Pty Ltd, Cloncurry Community Projects
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Hear what our customers are saying about Waterstop Streamline I am happy to give my recomm endation to use Waters top Streamline. It is the only modern looking product that I have se en that positi vely connects the shower screen to the waterproofing in a completely leak free way. .. Mr Albert Aebe rhard Builder, Hotondo Homes Group AC
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Waterstop is easy to order with efficient delivery. It has given us the edge on our competitors and is our preferre d method of waterproofing and tiling showers.
IF YOU ARE ONE OF OUR COMPETITORS READING THIS AD PLEASE IGNORE. Tony Glover Tony Glover Tiling & WaterprooďŹ ng
Waters top Str Why wo eamlin uld an e– yone u se any else to thing build a shower? At last someon e has g togeth ot a prod er that uct not on but it ly work looks goo s , d and is for eve so easy ry trad e t o work wit even com h. It es with instruc step by tions on step the prot ective t ape. Mr An
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reamline in all Using Waterstop St made life easy s ha our shower areas and our tilers. for waterproofing to install and They are so simple professional. y ver always look my clients I recommend to all Streamline p to use the Watersto areas. wer sho eir th system in Mr Kerry Blake terprooďŹ ng
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For more information, visit www.waterstopstreamline.com.au Phone 07 5426 3700 s -H_ s ,THPS ZHSLZ'NSLKH JVT H\
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4/02/2014 11:24:03 AM
Message from the Executive Director Grant Galvin – Executive Director
2014: A year for building With building activity levels finishing on a high in 2013, Master Builders believes there are a range of factors that will positively impact new dwelling starts over the next 12–24 months and be an added incentive for anyone considering building in 2014. Master Builders annual Building industry outlook has forecast 32,000 new housing starts along with solid renovation activity in 2013–14. This optimistic forecast for 2013–14 follows stronger starts in 2012–13, which drifted upwards by 3.6% to 29,343, exceeding our forecast of 28,000. We are also anticipating further growth in 2014–15, with levels conservatively forecast to rise by 10.9% to 35,500. If conditions improve further, it is possible that we could exceed 40,000 housing starts in Queensland in 2014–15. Building activity in November was very positive, with November building approvals confirming that Queensland’s housing recovery is thriving (see the ‘Housing recovery alive and well’ article on page 18).
WE’LL BE ENCOURAGING ANYONE WHO IS CONSIDERING BUILDING A NEW HOME OR RENOVATING, THAT 2014 IS CERTAINLY SHAPING UP TO BE THE YEAR TO DO IT.
The further good news is that home buyers and investors are becoming more confident, which we believe is a critical perquisite for any sustained recovery in construction activity. There are a range of factors at play, which are not only conducive to stimulating housing activity and driving these favourable conditions, but are good news for home owners. The favourable conditions include low interest rates (which are helping to stimulate demand for new housing), a more settled domestic political environment, strong economic growth and ongoing population growth. We know that the industry is currently operating below capacity and crying out for work and we’ll be taking the opportunity during 2014 to promote why this year is shaping up to be such a great time to consider building or renovating. Not only are the economic conditions favourable, one of the big benefits for consumers will be finding a contractor who can start work quickly. We’ll be promoting the benefit that, in the current climate, consumers will not have to wait too long to get building underway (the 12–18 month waiting periods that were common when building was at its peak prior to 2008 are certainly not a problem at present). This is a win-win situation for consumers who want to find a builder quickly and builders who are looking to grow in 2014. In a nutshell, we’ll be encouraging anyone who is considering building a new home or renovating, that 2014 is certainly shaping up to be the year to do it. From an association standpoint, our staff will continue to be at the ready to support and guide you through what we hope is going to be a year that only gets better. We are currently in the process of making some key internal changes that will support our service delivery to members as well as furthering our investment into new products and services that can be delivered to help members run their building businesses more efficiently. We will also continue our efforts to speak on behalf of members and the industry to ensure you are well represented. 2014 is shaping up to be the year where we once again move into an era of prosperity and Master Builders is keen to help drive you through the journey.
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Message from the President Derek Pingel – President
New QBCC board welcomed by Master Builders Master Builders welcomed the appointment of the Queensland Building and Construction Commission (QBCC) board with the move an important step towards vital reforms for the industry.
Master Builders strongly supports the state government’s decision to reform the Building Services Authority and welcomed the appointment of the Queensland Building and Construction Commission (QBCC) board in late 2013. We believe the new, independent QBCC is an important first step towards improving the building and construction industry and balancing the interests of builders, trade contractors and consumers. Over the last few years, Master Builders has recommended a range of building reforms that will help builders and trade contractors to better manage the risk in their business and, at the same time, boost consumer confidence. While work on some of these issues has commenced as part of the Queensland Government’s 10-point action plan, Master Builders is looking forward to working closely with the QBCC to ensure our full list of reforms is addressed. The reforms called on by Master Builders include:
WE BELIEVE THE NEW, INDEPENDENT QBCC IS AN IMPORTANT FIRST STEP TOWARDS IMPROVING THE BUILDING AND CONSTRUCTION INDUSTRY
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•
Retaining the mandatory home warranty insurance scheme and expanding the scheme to cover manufactured homes.
•
Maintaining a comprehensive licensing system that is underpinned by appropriate contractor training and adequate financial requirements.
•
Introducing a new dispute resolution process that deals with payment issues and defective and incomplete building work during construction, as well as after handover for the life of the home warranty insurance cover.
•
Ensuring that all licensed contractors and other parties, including engineers, architects and designers, are held accountable for their work.
•
Developing a guide to standards and tolerances to provide guidance to all parties about what is defective work.
•
Aligning contractors’ statutory and contractual obligations to ensure consistency between the Domestic Building Contract Act, the Queensland Building and Construction Commission Act and the Australian Consumer Law.
•
Capping the builders’ liability for latent defects at ten years.
•
Ensuring that contractors are paid for work that has been agreed to by the client.
•
Introducing a CPD scheme to lift technical and contractual standards across the industry.
These are long-awaited and much needed changes for the industry, and we plan to ensure the QBCC is across the finer detail as implementation commences. However, the appointment of the board is just the first step. Now the work that is required to properly drill down to the core of these issues can commence.
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Opinion Wilhelm Harnisch – Chief Executive Officer Master Builders Australia
A national voice for Master Builders As we commence a new year, there are signs that improving business conditions will make 2014 a more positive one for the building and construction industry. But while more economic and confidence indicators are looking positive, particularly for residential building, we cannot afford to sit back and wait for positive outcomes to come our way. We need to continually push the government to allow business to get on with the job. As your national voice in Canberra, Master Builders Australia is working with Master Builders Queensland to influence the federal government to make the reforms necessary for a better business environment, particularly regarding the sound management of the national economy, providing a more flexible industrial relations system and removing regulations to improve housing affordability. We also speak up nationally for the industry on the regulatory bodies that have such a large impact on the cost of running your business, including the Reserve Bank, Australian Tax Office, the Fair Work Commission, the Australian Building Codes Board, Standards Australia and Safe Work Australia. Following the election of the Abbott Government, Master Builders Australia is looking positively ahead to 2014. We will work with the government on behalf of our 32,000 members across Australia to ensure the building and construction industry is a major contributor to Prime Minister Abbott’s declaration that Australia is open for business. We will also make sure the government understands the policy reforms they need to implement if they are to be a ‘building government’ led by an ‘infrastructure Prime Minister’. The building and construction industry has a proven track record in kick-starting an underperforming economy and creating valuable jobs, particularly for young people. Master Builders highlighted this in the lead up to the September 2013 Federal Election and will again be putting this front and centre of our advocacy in the lead-up to the 2014 Federal Budget. But breathing life back into the economy and the building and construction industry comes with its challenges. A major one is to
fully restore flagging confidence, which has been largely absent despite record low interest rates. The prospect of a stable political period of Federal Parliament, without the destructive political turbulence of the last three years, is a very good start but not enough. Master Builders has called for an urgent return to sound economic management, including the reining in of Federal Government debt and spending. This has to be one of the highest priorities if we are to see a return of confidence by investors and households, bringing with it increased investment and job creation. In parallel, the Abbott Government must embark on a program of bold reforms to help businesses perform better. These must include common sense changes to the workplace relations system, not just another inquiry. However, the government deserves substantial credit for its boldness in meeting its election commitment to table legislation for the restoration of the Australian Building and Construction Commission (ABCC) in its first one hundred days. Master Builders Australia is sparing no effort in backing this key reform which is vital to stamping out unlawful industrial action, which is once again prevalent in Queensland. We will continue our public advocacy to policy makers through our policy submissions and appearances before parliamentary inquiries, until the legislation is passed.
But the challenges for our industry don’t start and end at suppressing industrial thuggery. Master Builders Australia has been quick off the mark to ensure the Abbott Government understands the building and construction industry’s need for red and green tape to be slashed, particularly for small business. We have also called on the Abbott Government to implement reforms to attract and accelerate investment in infrastructure, to tackle the massive undersupply of new housing and, at the same time, tackling housing affordability. In all this, we cannot lose sight of the need to create rewarding careers through a revitalised apprenticeship system, which is also necessary to ensure we have a skilled labour force into the future. Meeting these challenges is essential if Queensland’s building and construction industry is to maximize its capability to build the state, house its population and generate jobs for successive generations of Queenslanders. Without a strong Queensland building and construction industry there will not be the economic growth needed to produce the levels of employment or the lifestyle we all aspire to. That’s why Master Builders Australia and Master Builders Queensland will continue to lobby for a business environment that lets Queensland members do what they do best – build strong profitable businesses by building the homes, schools, hospitals, roads and infrastructure our community depends on, by creating jobs for our young people and by creating wealth for the state and its people.
WE WILL MAKE SURE THE GOVERNMENT UNDERSTANDS THE POLICY REFORMS THEY NEED TO IMPLEMENT IF THEY ARE TO BE A ‘BUILDING GOVERNMENT’.
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Advertorial
Interest in home building franchises gains momentum with market recovery Home building franchises are proving to be a popular option for budding entrepreneurs who want to establish a home building business for themselves, according to Australia’s newest franchise builder, and one of the biggest names in the business, Coral Homes.
Expansion into Mackay with first franchisee
And with most signs pointing to a recovery in the Australian home building market, many are seeing now as a good time to make the move towards setting up and operating their own home building business, said Coral Homes’ Franchising Manager, Roger Washbourne.
Coral Homes’ first franchisee, Simon Currie, has worked in the building industry his whole life, and saw a franchise as a way of setting himself up in a business to potentially provide him and his family with financial security.
“We’re definitely seeing a very high level of interest from people who want to own and operate a Coral Homes franchise,” said Roger.
“I started out in this industry way back as a brickies labourer, then I became a bricklayer, then a carpenter, then a building supervisor. I learnt the industry from working for others over a long time, but I wanted to make the jump and start reaping my own rewards with my own building business,” said Simon.
“Confidence is coming back to the home building market and those entrepreneurs are seeing a franchise as a way to get into business for themselves and secure their income for the years to come,” he said. Coral Homes has already established two franchisees in the short time since the company announced it would commence franchising in late 2013. It is the first time in its 24 year history that Coral Homes has undertaken franchising.
“My goal is to build this business up as an investment into my future when I eventually decide to hang up the tool belt and retire,” said Simon. “When Coral Homes announced late last
Coral Homes’ Mackay franchisee Simon Currie.
year it was franchising I saw it as a great opportunity as it would have been a lot harder to do it on my own. And the timing was good too considering the market is looking like it’s starting to improve,” he said.
“…IT WOULD HAVE BEEN A LOT HARDER TO DO IT ON MY OWN.”
Do you dream of owning your own building business? Get started with a Coral Homes franchise, an opportunity to partner with an iconic Australian brand committed to helping you realise your potential. Own a slice of an iconic brand with a high level of market awareness Industry leading systems, processes, training and support Extensive marketing support and innovative home designs Real bulk buying power from a major home builder
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Photo may depict fixtures, finishes and features which are not supplied by Coral Homes such as pool, furniture and landscaping.
4/02/2014 11:24:24 AM
Advertorial
First foray into South Australia with second franchisee As a couple who have dedicated their careers to selling new homes, Coral Homes’ second franchisees, Paul and Caroline Gill, know the value of a good brand when it comes to choosing a franchise. The husband and wife team viewed a Coral Homes franchise as a great opportunity to get into the building business for themselves but with the support and awareness of an iconic brand, according to Caroline Gill. Coral Homes’ South Adelaide franchisees Paul and Caroline Gill.
“Together, Paul and I have over 30 years
combined experience in selling new homes, and we always wanted to get into the home building business for ourselves,” said Caroline. “With Coral Homes becoming a franchisor, the timing was good but we knew we came up a bit short in some of the other skills needed to run a successful business. In addition to a great brand, Coral Homes was able to provide us with the systems and training necessary to give us the confidence to take the big leap and start working for ourselves,” she said.
“CORAL HOMES WAS ABLE TO PROVIDE US WITH THE SYSTEMS AND TRAINING NECESSARY TO GIVE US THE CONFIDENCE...”
Future franchise opportunities Coral Homes has been trading with great success since 1990, so from the outset of franchising it was natural to see a good level of interest in the company’s franchise model, according to Roger Washbourne.
system combined with industry leading support and a strong brand which has contributed to the initial strong growth in franchise sales, said Roger.
“However what we have experienced to date is a much higher level of enquiry than expected and that comes down to the quality of what we have on offer,” he said.
“This is a once in a lifetime opportunity for people who want to start and operate their own home building company to get on board with a renowned and successful home building brand,” he said.
It’s the depth of Coral Homes’ franchising
Coral Homes has established itself as one
“THIS IS A ONCE IN A LIFETIME OPPORTUNITY...”
of the leading home builders in the country since it began operating as a husband and wife team on the Gold Coast back in 1990. Since then it rapidly grew to become one of the most respected brands in the industry, with a display home and building area network spanning across a large portion of the eastern seaboard. The company made the decision to franchise as a way of allowing more Australians access to the benefits a Coral home can provide. Expressions of interest are currently being taken by Coral Homes for franchise opportunities across Australia. For more information or to register your interest go to www.coralhomes.com.au or call Coral Homes’ Franchising Manager, Roger Washbourne on 0419 396 095.
What are you waiting for? Register your interest now and take the first step to achieving business success. Go to www.coralhomes.com.au or call Coral Co Homes’ Franchising Manager, Roger Washbourne on 0419 396 095. Ro
QBCC 50792/1014053
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FR ANCHISE PARTNERSHIPS – UNLOCK YOUR POTENTIAL
4/02/2014 11:24:26 AM
News
Twitter updates Follow @MBAQld on Twitter to join the conversation.
Looking to spread the word about your business this year?
Master Builders Qld@MBAQld #Qld govt’s 6 month action plan aims to cut red & green tape in building & construction – great news for our industry http://bit.ly/LgKhtG
Our brand new, monthly Master Builders feature in the Home lift-out of The Courier-Mail could be just the advertising option you’ve been looking for.
Master Builders Qld@MBAQld New @propertycouncil report shows #Qld leading the way with surge in property industry confidence http://bit.ly/LfrAXt
Master Builders Qld@MBAQld #Qld govt’s bid to boost FNQ construction industry will see @hutchies1912 deliver new community care unit in Cairns http://bit.ly/1hl5yNw
Launched at the beginning of this year, the 18-page colour spread showcased beautiful new homes, designs and land, with our members and display villages featured prominently. Advertising in this publication will connect you with motivated home buyers across Queensland, and leverage the power of a well-known, trusted brand. It’s also a great option for new home builders and manufacturers/suppliers to the building industry to advertise their products, such as pools, landscaping supplies, white goods and window shutters, etc. to the new housing market. As a member of Master Builders, you can advertise in this special monthly feature at heavily reduced, exclusive advertising rates. If you’re interested in using the Home lift-out to advertise your business or products, please contact Master Builders State Manager Operations, Mark Roy, on (07) 3225 6518 or 0438 001 964.
WorkSafeQLD@WorkSafeQLD
Don’t miss this exciting opportunity!
New year, new work safety responsibilities! Find out if you're affected: http://bit.ly/1f7h29V
STYLISH SETTINGS
Master Builders Qld@MBAQld Quarry developments in SEQ are set to support growth in #Qld building & construction sector @JarrodBleijieMP http://bit.ly/JWgqoH
Floor plans
SATURDAY, FEBRUARY 1, 2014
to impress P19
»
Master Builders Qld@MBAQld @JeffSeeney Proposed development at Queen’s Wharf is exciting news & a great boost for #BNE construction industry http://bit.ly/1bRgYTh
Master Builders Qld@MBAQld Fantastic report from @UDIAQ today. Future is looking good for #Qld construction & development industry! http://bit.ly/1bPiaKw
Master Builders Qld@MBAQld @theqldpremier Go #Qld! Second lowest unemployment rate in Oz great news for building confidence!
OUT OF THE BOX Minimum cost with maximimum design control ol
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PENTHOUSE LIVING FOR $3.95M
»P6
»P2 couriermail.com.au/realestate
4/02/2014 11:24:26 AM
News
Facebook highlights FOLLOW MASTER BUILDERS QUEENSLAND ON FACEBOOK FOR THE LATEST NEWS, UPDATES, PHOTOS AND EVENTS FOR THE BUILDING AND CONSTRUCTION INDUSTRY.
Time. Cost. Quality.
New Year’s Resolution #1 Make the most of your membership by using our logo on your promotional material and website. The Master Builders brand is well known and respected, so aligning your business with our strong brand will set you apart from the rest.
1800 808 289 www.mitbrand.com
New Year’s Resolution #2 Are you a member in a difficult situation with a client? Seek help sooner rather than later and call us! Dispute resolution is one of our core services and our expert staff are here to help you manage disputes that arise in your business.
Specialist contracts staff on hand – but only when you need them
New Year’s Resolution #3 Stay ahead of the game and seek early advice on employment and wages for the coming year. Our expert staff can give you specific information about wages and allowances, union demands, right of entry, WorkCover claims, unfair dismissals and more – at no extra cost.
New Year’s Resolution #4 Put yourself in the running to become an award-winning builder and enter your projects into our Housing & Construction Awards. Showcase your quality workmanship and compete against the best of the best for your chance to win one of these highly-coveted awards. It’s also a great publicity tool!
As a Master Builders member, you can buy a contract and receive back up advice from our specialist staff. Master Builders has developed a range of contracts that allocate risk fairly between builders and subcontractors and builders and their clients. Along with that contract, you can also access our specialist advice that relates to: •
Suitability of contracts
•
•
Contract terms and conditions
Extension of time claims and preparation
•
•
Progress claims entitlements and preparation
Legislation affecting contracts
•
Tender procedures
•
Tender documents
•
Variation claims and preparation
To order online, visit www.masterbuilders.asn.au/eshop.
New Year’s Resolution #5
Alternatively call 1300 30 50 10 for more information.
Attend at least one Master Builders event this year. Our member events provide a great networking opportunity where you can meet and mingle with like-minded industry professionals. There are lots of exciting events happening in 2014, so keep an eye out for your invites.
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mb
4/02/2014 11:24:28 AM
News
Advertising requirements for the new Queensland Building and Construction Commission Advertising is a valuable tool for attracting new business, but it is important for building industry licensees to comply with the relevant legislation.
Items that can easily be changed (such as websites and social media pages) should be changed as soon as convenient, while hard copy advertising already in place does not need to be changed immediately.
Following the establishment of the Queensland Building and Construction Commission (which replaced the BSA), you should be aware that all responsibilities for building contractors that applied under the former regulator remain in place.
Going forward, all advertisements for building work must meet the QBCC Act guidelines, which state that an advertisement must display:
Advertising requirements set out in the Queensland Building and Construction Commission Act 1991 (QBCC Act) should be adhered to whenever possible. While licensees are not required, at this point, to immediately change all hard copy advertising and promotional material, they should be mindful that all new stock should meet these guidelines. An advertisement includes (but is not limited to) websites, social media pages, newspaper ads, brochures and flyers, business cards, vehicle signage, radio and television advertising, posters and Yellow Pages ads.
•
The name of the licensee (either your name or if your company is licensed, the company’s name)
•
Your QBCC licence number (or the company’s licence number if licensed).
These must be easily legible and reasonably prominent form for printed material or on the internet, and in an audible and clear form (as clear as the rest of the advertisement) for radio or television advertisements. It is also important to remember that advertisements cannot include the QBCC logo, which is protected by copyright. The QBCC regularly checks newspapers, brochures, flyers and websites to ensure advertisements comply with the guidelines and within a reasonable timeframe, contractors found not complying may face fines. For more information, visit the QBCC website at www.qbcc.gld.gov.au
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mb
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[ 12 ] february/march 14
MB Feb-Mar 14 magazine.indd 12
4/02/2014 11:24:29 AM
News
The Master Builders that built Canberra As part of the Centenary year celebrations the Master Builders Association of the ACT have published a special book to commemorate 100 years of building in Canberra.
Aspley Nursery Owned and operated by the Percy family and has been in operation since 1951 15 acres of nursery on two sites at Burpengary, just north of Brisbane Accredited under the NIASA scheme Pantec trucks with hydraulic lifters to ensure stock arrives on time and in excellent condition Aspley Nursery has extensive experience in the landscape green stock supply where we can offer consultation and design on your project, coordinate production, sourcing, delivery and supply to provide the “The One Stop Shop� for all your green stock needs. Mention this ad and receive 5% discount off your plant purchase.
Robert or Noel Percy, 106 Hunt Road, BURPENGARY QLD 4505 Ph: 075498 5652 Fax: 075498 5811 Email: sales@aspleynursery.com.au
www.aspleynursery.com.au
This very special publication has been generating a great amount of interest and unearthed wonderful stories of the building projects across the Nation’s Capital. Dozens of retired builders and past members of the Master Builders Association of the ACT have been interviewed and their stories have been included in the publication – The Master Builders that built Canberra. Throughout this book readers will uncover a recurring theme of leadership, with stories of Presidents, Executive Directors and members of the organisation taking the lead in overcoming hardships, representing the industry and supporting the Canberra community. There are also many stories demonstrating the strong mateship, support, and sense of community that dominated the industry during the construction of Canberra. The 200-page, beautifully presented, hard-cover book explores the Association’s history, capturing previously untold stories and reflecting on the contribution of the building industry to the National Capital over the past 100 years. The publication was released in December 2013 and is complimented by photos that tell the story of a city still under construction. This is the first time many of these photos have been published. For further information or to purchase a copy of the Master Builders that built Canberra, contact David Leitch on (02) 6175 5970, email dleitch@mba.org.au or visit www.mba.org.au/publications/centenarybook
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february/march 14
MB Feb-Mar 14 magazine.indd 13
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4/02/2014 11:24:31 AM
Policy & advocacy Dyan Johnson – Manager Policy & Economics
The issue of non-conforming building products The rise of imported building materials presents both opportunities and pitfalls for the construction industry. While imported products can be cheaper, many of them do not meet regulatory Australian or industry standards. There are products which are simply not being tested to Australian Standards, or are being tested once and pass, but subsequent products are manufactured to an inferior standard. Counterfeiting is also a problem with substandard products being labelled as meeting Australian Standards. These substandard products are being found across all areas of construction, from steel, copper and electrical products to glass, aluminium and engineered wood – from the roof down to the bolts and screws. For building professionals, the potential for liability is enormous and there is a daily risk of working on building sites with products that are not fit for purpose. In the long-term there are concerns for people’s safety and the value of their homes and buildings. The recent ‘prohibiting supply’ of Infinity electrical cable emphasises the danger to the public and the risk confronting the building sector in unknowingly breaching consumer and building legislation. Regulatory controls over these products are patchy at best. Currently, there is too much reliance on the controls at the point of installation rather than at the point-of-sale. Too much of the responsibility is being borne by builders and building certifiers.
purpose products with ease and confidence and better controls are needed to remove nonconforming products at the point-of-sale. We are working with other industry stakeholders and government to this end. In the meantime, builders need to be vigilant when sourcing building materials and when accepting products that their clients source. We recommend that builders source their products from a reputable distributor and check for evidence of meeting the relevant Australian Standard. The old adage holds – ‘if it seems too good to be true, then it probably is’. Many industry sectors are working to address the problem in their own areas and can be referred to for additional advice. The following table offers a guide to these sectors: Steel ACRS Certificate of Product Compliance covers reinforcing, pre-stressing and structural steels. www.steelcertification.com Engineered wood Engineered Wood Products Association of Australasia (EWPAA) certifies plywood, LVL, particleboard and fibreboard and provides a register on its website. www.ewp.asn.au
Electrical Electrical Regulatory Authorities Council operates the Electrical Equipment Safety System (EESS) which covers all ‘in-scope’ electrical equipment and maintains a national database where all suppliers and certain types of equipment must be registered prior to being offered for sale. www.erac.gov.au Electrical cables The Australian Cablemakers Association has introduced the ACI logo for products that they have certified and have been manufactured in Australia. www.australiancablemakers.com Plumbing and drainage WaterMark – mandatory certification scheme managed by the Australian Building Codes Board (ABCB) to ensure that plumbing and drainage materials and products are fit for purpose. www.abcb.gov.au General CodeMark – operated by the Australian Building Codes Board to provide independent product certification. www.abcb.gov.au For more information, contact Master Builders on (07) 3225 6419 or email housing@masterbuilders.asn.au
There is also a lack of a clear system for builders to be able to identify and report a nonconforming product. Independent, third-party product certification frameworks do exist in some sectors, but the system is not comprehensive and is difficult to navigate. There is even less in the way of auditing to ensure that standards are maintained beyond an initial certification. Masters Builders recognises the need to reform the current system to ensure quality and safety in construction. Builders must be provided with a mechanism to select fit for
mb
FOR BUILDING PROFESSIONALS, THE POTENTIAL FOR LIABILITY IS ENORMOUS.
[ 14 ] february/march 14
MB Feb-Mar 14 magazine.indd 14
4/02/2014 11:24:35 AM
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Infinitely flexible, the LEDlux Infinity Mini range is available in dimmable, non-dimmable and low glare options with an outstanding light output of 600 lumens. And because they have an extra wide beam spread, you need fewer downlights to light the same area. All LEDlux Infinity Mini 11W downlights come with a 5-year warranty, so you can be assured of their superior quality and reliability. Choose square or round face, brushed chrome or white finish, 3000k and 4000k warm and cool white.
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MB Feb-Mar 14 magazine.indd 15
COMMERCIAL 4/02/2014 11:24:36 AM
Reports & statistics
Latest survey reveals improving industry confidence and conditions Industry confidence has remained steady during the three months to December after the strong improvement last quarter, according to Master Builders latest Survey of Industry Conditions for the December 2013 quarter. While trading conditions in the residential and commercial sectors are still far from positive, the latest survey results reflect a strong upturn during the December quarter, particularly in the residential sector. Master Builders believes the hold in confidence and upturn in the residential sector come on the back of strong building approvals and housing finance data during November and are further evidence that the recovery in housing is underway. For the first time in several years, the level of building industry confidence in south east Queensland is well above levels in regional Queensland, underlining the resurgence of the south east as the powerhouse of the Queensland building industry.
Unfortunately, the survey is telling us that housing affordability is still negatively impacting new housing demand and this is an area Master Builders will be focusing on in the coming years. However, on a positive note, visits to display homes increased and entered positive territory for the first time in three years. We believe there has been a general return of consumer confidence on the back of interest rate cuts last year, which is another sure indicator that housing activity is slowly improving. Other key points from the survey included an improvement in turnover, despite profitability remaining subdued, and employment levels a concern, with 23% of respondents shedding staff during the quarter.
LATEST SURVEY RESULTS REFLECT A STRONG UPTURN DURING THE DECEMBER QUARTER, PARTICULARLY IN THE RESIDENTIAL SECTOR.
mb
[ 16 ] february/march 14
MB Feb-Mar 14 magazine.indd 16
4/02/2014 11:24:36 AM
Reports & statistics
For this reason, very few businesses reported a shortage of skilled workers. Although, this result does not mean that the skills shortage is off our radar. The level of demand is still a major constraint on business, but survey results show the issue is less critical than it has been in the last 24
months. Labour costs also became more of an issue in regions where the resources sector is particularly active.
Master Builders Survey of Industry Conditions report provides information and analysis on industry expectations and business performance, based on a survey of Master Builders members across Queensland. For copies of the reports, visit www.masterbuilders.asn.au/publications-andresources/reports-and-statistics
Infrastructure charges, government planning approval processes, and the cost and availability of finance have all fallen away as constraints.
Queensland building industry conditions
Residential sector conditions
Improving condition Weakening condition
Sep 2013
Dec 2013
Mar 2014
Stronger
14%
25%
50%
Stable
32%
30%
38%
Weaker
54%
44%
12%
Index level
36.6
43.7
59.9
Commercial sector conditions
Display traffic
Stronger
14%
20%
33%
Stable
25%
34%
55%
Weaker
61%
46%
12%
Index level
33.6
39.9
54.7
Business constraints
Improving condition
Weakening condition
Region
Building industry outlook
Turnover
Profit
Employment
Average wages
Capital expenditure
Level of work
Brisbane
70.1
58.8
54.2
51.2
53.6
48.5
52.2
Gold Coast
70.5
51.1
46.6
44.3
47.6
48.9
51.1
Sunshine Coast
65.9
56.8
51.1
47.6
51.4
47.5
46.6
Darling Downs and South West Queensland
68.4
55.6
48.6
48.6
55.6
55.9
51.3
Burnett Wide Bay
62.5
45.8
43.8
42.5
52.8
45.8
39.6
Central Queensland
62.5
45.8
41.7
33.3
50.0
50.0
35.0
Mackay
52.1
31.3
31.3
37.5
45.5
41.7
43.8
North Queensland
50.0
40.9
36.4
42.5
38.6
30.6
40.9
Far North Queensland
63.6
31.8
31.8
45.0
45.8
29.5
31.8
Queensland
66.3
52.3
48.0
47.2
51.1
46.6
48.0
february/march 14
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4/02/2014 11:24:40 AM
Reports & statistics Paul Bidwell – Deputy Executive Director
Housing recovery alive and well Another positive month of Building Approvals from the Australian Bureau of Statistics confirms that Queensland’s housing recovery is thriving as we head into the New Year. Dwelling unit approvals increased 8.3% (seasonally adjusted) during November, which is a whopping 46.7% increase on approvals for the same time in 2012. This is the sixth consecutive monthly rise and confirms our view that a recovery is taking hold. Some further great news to kick off the New Year is that dwelling unit approvals are now back above the ten-year average; having spent the last three years languishing below that level. Interest rates, population growth, employment and wages growth are all favorable for the housing industry. We are confident that, after several years of tough trading conditions, builders in the residential sector across Queensland can look forward to better times during 2014.
Looking across the state, the south-east corner continues to be the focus of the growth, while Central Queensland and Mackay & Whitsunday fell again, highlighting the impact that the downturn in the resources sector is having on the housing sector and the economy generally.
% change Oct to Nov 13
% change Nov 12 to Nov 13
Region
Nov 13
Oct 13
Nov 12
Brisbane
2,167
2,028
1,226
7%
77%
Gold Coast
482
252
251
91%
92%
Sunshine Coast
330
291
132
13%
150%
Burnett Wide Bay
138
120
96
15%
44%
Darling Downs & South West Qld
161
185
124
-13%
30%
Central Qld
102
163
261
-37%
-61%
Mackay & Whitsunday
105
181
203
-42%
-48%
North Qld
146
241
166
-39%
-12%
69
104
70
-34%
-1%
Far North Qld
Housing finance continues upward climb Housing Finance figures released by the Australian Bureau of Statistics for November show a third consecutive month of improvement and continue to build on the previous month’s solid gains. mb
The rise in Queensland approvals from 9,690 in October 2013 to 9,951 in November 2013 (seasonally adjusted) represented a 3% month-to-month increase and a healthy 15% increase over the previous 12 months. Housing Finance commitments are evidence that the housing sector is finally getting back on track and that the growth is here to stay. In fact, commitments have now increased by 35% since the GFC lows in March 2011 and the industry hasn’t looked so robust in a long time. These figures certainly mean we are starting the New Year off on the right foot.
[ 18 ] february/march 14
MB Feb-Mar 14 magazine.indd 18
4/02/2014 11:24:42 AM
Contracts & disputes Jeff Poultney – Manager Legal & Contracts
Preliminary agreements A snapshot guide to preliminary agreements for both domestic and commercial projects. The preliminary agreement was drafted to give contractors the ability to recover costs from an owner in preparing documentation. In particular, foundation data, which is required by law to be in place prior to entering a residential contract.
These are just some of the items that can be included as part of the schedule of tasks that the contractor will carry out as a service to the owner for a fee. Additional tasks can be added, depending on the type and nature of the project.
The agreement is between the contractor and the intended owner of a proposed project and in its printed context, sets out to recover, for the contractor, costs associated with:
Dependent on the economic climate and the demand on contractors requested to sign a contract, it is suggested that a preliminary agreement be put in place with special conditions that allow the documentation side of the project to proceed and provide for a lead up period to the execution of contract by the owner agreeing to commit to the contractor at a later date.
Surveying the site
•
Obtaining the foundation data, such as soil tests and contour plans
•
The preparation of drawings and specifications
•
The alteration and amendment of such drawings and specifications as required by the owner
•
The preparation of an appropriate footing design for the site and, if appropriate, a concrete slab design based upon the foundation data
•
Making an application to the relevant local authority or private certifier for approval of building works
•
Making application for approval to any other authorities, which may be necessary
•
The payment of all fees necessary to obtain such approvals
•
The preparation of cost estimates to carry out the works on the finalised documentation.
QBSA Lic: 79973 A Class Asbestos Lic: 2271463 Demolition Lic: 2271464
•
The preliminary agreement is a valuable commercial tool for use by contractors in achieving payment for services, which some would regard as a free service provided by the industry. However, given the extent and cost of these services that are being provided, a fair and reasonable fee should be charged and paid for by owners. The preliminary agreement is available from all Master Builders offices throughout Queensland or on eDocs – Master Builders electronic documents and online core services system. For further information, contact Master Builders on (07) 3225 6426 or email contracts@masterbuilders.asn.au
The use of the preliminary agreement is not restricted by legislation and the document makes provision for the payment by the owner to the contractor of an appropriate fee. This fee would be established on the basis of an agreement between the contractor and the owner. The fees can be charged at a standalone fee separate to the contract, or can be rolled into part of the overall contract price once the total value of the works is established and the parties are prepared to commit to a contract.
THE PRELIMINARY AGREEMENT IS A VALUABLE COMMERCIAL TOOL FOR USE BY CONTRACTORS IN ACHIEVING PAYMENT FOR SERVICES. Contact us for the removal of:
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Phone: 3255 6574 Email: office@kayhan.biz february/march 14
MB Feb-Mar 14 magazine.indd 19
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4/02/2014 11:24:47 AM
Housing & Construction Awards
Entries now open Entries are now open for the 2014 Master Builders Housing & Construction Awards. Do you want to gain public and industry recognition for your achievements and quality projects? Why not enter into Master Builders Housing & Construction Awards? The Housing & Construction Awards are Queensland’s most prestigious building awards and recognise those at the forefront of building innovation and quality craftsmanship. Not only are they a great way to gain recognition for the work you do in the industry, but winning an award also provides an ideal opportunity to drive business sales and catch the attention of potential clients. The awards cater for entrants ranging from apprentices, trade contractors and small family businesses, to the biggest names in the building and construction industry, with an award to suit almost every project. If you think you have what it takes to win an award, download an entry form from Master Builders website at www.masterbuilders.asn.au/ housing-and-construction-awards
ENTRY FEES Early bird (until 28 March 2014)
Entry fee
Trade Contractor/Specialty, Best Bathroom, and Best Kitchen
$250
$295
Housing
$350
$395
Construction
$450
$495
Category
Rising Star, Women in Building & Apprentice of the Year
Free of charge
Note: Entry fees include GST, but do not include tickets to Housing & Construction Awards presentation ceremonies. Entry forms must be received by Master Builders on or before the early bird date to qualify for the discounted rate. One project/house per entry form; however, a single project/house can be entered into multiple categories on one entry form.
Need a new vehicle? Let us shop around for you. Call Master Builders on 1300 55 11 61. QMBA-13610 06_11
mb
[ 20 ] february/march 14
MB Feb-Mar 14 magazine.indd 20
4/02/2014 11:24:50 AM
Housing & Construction Awards
KEY DATES
Region
Early bird closing date
Final entry closing date
Award ceremony event date
Venue
Brisbane
28 March
11 April
Friday, 4 July
Sofitel Brisbane
Gold Coast
28 March
11 April
Saturday, 12 July
Jupiters Hotel & Casino
Burnett Wide Bay
28 March
11 April
Friday, 18 July
Brolga Theatre
Sunshine Coast
28 March
11 April
Saturday, 19 July
Novotel Twin Waters Resort
Downs & Western
28 March
24 April
Saturday, 2 August
City Golf Club, Toowoomba
Mackay & Whitsunday
28 March
2 May
Friday, 15 August
Mackay Convention Centre
Central Queensland
28 March
2 May
Saturday, 16 August
Robert Schwarten Pavilion
North Queensland
28 March
2 May
Friday, 22 August
Jupiters Townsville Hotel & Casino
Far North Queensland
28 March
2 May
Saturday, 23 August
Cairns Convention Centre
State
NA
NA
Friday, 26 September
Brisbane City Hall
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february/march 14
MB Feb-Mar 14 magazine.indd 21
[ 21 ]
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4/02/2014 11:24:55 AM
Housing & Construction Awards
Free categories Win an award that makes YOU stand out from the crowd. The building and construction industry wouldn’t be what it is today without the continued hard work and dedication of the individuals who work within it. The Housing & Construction Awards are not just about houses and projects – they also recognise people within the industry who are crucial to its success. This is why the awards dedicate three major categories – Rising Star, Women in Building and Apprentice of the Year – to individuals who stand out and make a valuable contribution to the industry. If you have a colleague or employee who fits these criteria, encourage them to nominate for one of these awards. Or why not nominate yourself? Entry into these categories is absolutely FREE! The Rising Star, Women in Building and Apprentice of the Year awards provide a platform for individuals, who may be overlooked when it comes to the recognition they deserve, to gain public acclaim for their excellence. To enter, use the entry form found with this magazine or download an entry form from our website at www.masterbuilders.asn.au/housing-and-construction-awards. For more information, please refer to the Information Booklet on the Master Builders website at www.masterbuilders.asn.au/housing-and-construction-awards
Modern Award Manual
BUILDING AND CONSTRUCTION GENERAL ON-SITE AWARD 2010 A special Master Builders edition of the Building and Construction General On-Site Award 2010, including interpretation of complex clauses.
Cost Member $55 (including GST)
Ordering a manual Call (07) 3225 6444 or go to www.masterbuilders.asn.au.
mb
QMBA-14356 09-11
Non-member $110 (including GST)
[ 22 ] february/march 14
MB Feb-Mar 14 magazine.indd 22
4/02/2014 11:25:00 AM
Housing & Construction Awards
Entry tips & suggestions
If you are supplying professional photographs, please complete the photographer authorisation section on your entry form to give Master Builders permission to use the professional photographs.
4. Take advantage of the early bird rate Get your entry in early and take advantage of the early bird rate, which gives you $45 off the cost of each entry. It’s also important to make sure your billing information is correct, as entries will only be accepted if billing information or a cheque is supplied.
5. Ensure your details are upto-date
A few tips on how to enter the 2014 Housing & Construction Awards with ease. Entering a project into the Housing & Construction Awards might seem like a daunting process, but it’s really quite easy. Here are a few tips on how to make entering a breeze.
1. Provide a detailed description of the project It’s important to provide a detailed description of at least 100 words with your entry. When writing the description, read the judging criteria, think about what aspects might interest potential clients, as well as the judges, and include any special features that may be unique to the entry. You can also attach relevant marketing material that provides a good description of the project. If you win an award, the information that you provide will be used in the award ceremony and throughout publications showcasing winners. For entries in the Rising Star, Women in Building, Apprentice of the Year, Innovation in Workplace Health & Safety, Innovation in Environmental Management, Excellence in Sustainable Building and Excellence in Sustainable Living categories, the written submission must also provide details of how the entry meets the judging criteria.
2. Supply professional photographs It’s a great idea to hire a professional photographer to take photos of your house or project. Not only can you use the photographs to support your entry, you can also use them in your own promotional material, including brochures, on your website or to simply show potential clients. It’s not mandatory to provide photographs of your project with your entry; however, we strongly recommend that you provide professional photographs for judging and publicity purposes. Should your entry be shortlisted, the judges use your photographs in their final deliberation and, if your entry wins an award, we will use the photographs in promotion of the awards to the media and across a range of official publications. If you don’t have any professional photos of your project, don’t worry, our judges will take photos during their inspections. However, photographs taken by Master Builders will remain the property of Master Builders.
3. Ensure you have the photographer’s permission Master Builders will not reproduce a copyrighted photograph without appropriate authorisation from the photographer or studio.
We validate the details on your entry form against those in our membership database and on the Queensland Building and Construction Commission (QBCC) public register, so it’s important to ensure your details, including business name, trading name and licence number are up-to-date with Master Builders and the QBCC. As stipulated on the entry form, the name displayed on the award will be the licensee name and, if applicable, one recorded trading name (as per the QBCC public register). If you have more than one recorded trading name, Master Builders will contact you for clarification.
6. Ensure your entry form is completed correctly Take the time to carefully go through each section of the entry form, ensuring you have completed all the fields that are relevant to your entry. If your entry form is incomplete it may slow down the process of assessing your entry. Once you have completed the form, take the time to run your eyes over it a second or third time, or get someone else from your business to take a look for you.
7. Make sure you have the owner/client’s permission to enter the project Before you submit your project for entry, ensure you have permission to do so from the owner, your client or your contractor. They will need to sign the owner authorisation section of the entry form, so if you don’t have their confirmed permission, your entry may not progress. For more information on entering, please visit Master Builders website at www.masterbuilders.asn.au/housing-andconstruction-awards february/march 14
MB Feb-Mar 14 magazine.indd 23
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4/02/2014 11:25:04 AM
Housing & Construction Awards
Success story
What were your expectations when entering? Did you think you had a chance of winning? We never enter the awards expecting to win as we are up against the best in your industry. The day that we just expect to win, is the day we aren’t putting our all into our homes.
Do you believe there is value gained in entering the awards? Absolutely! The awards give you value with customer exposure but are also a great way to further advance yourself and become the best you can be.
Winning a Master Builders Housing & Construction Award is not only highly regarded within the industry, but also well recognised by the general public and the media. Featuring more than 50 categories across housing and construction, the awards program caters for all types of businesses – from subcontractors to ‘mum-and-dad’ operators and large organisations. It also gives members the opportunity to showcase their projects and achievements to the broader building and construction industry, as well as consumers. We recently took the opportunity to speak with one of our 2013 award winning members, Patrick and Alfina Winter, from Tropical Trend Homes in Cairns, to ask how success in the Housing & Construction Awards has benefited their small business.
How has winning an award benefited your business? We have benefited in client and industry exposure. We are a small business and wish to stay that way, so the awards are a chance to be noticed, not by the amount of homes we build, but by the quality of our work.
Will you continue to enter the awards in the future? Yes, we certainly will!
Why did you enter the 2013 Housing & Construction Awards?
Would you recommend other members enter the awards?
We enjoy entering the awards, we strive for our homes to be of the highest quality, and the awards are a measure for us that we are achieving our goals.
Yes, regardless if you win or not, there is a lot you can learn from the awards.
mb
[ 24 ] february/march 14
MB Feb-Mar 14 magazine.indd 24
4/02/2014 11:25:05 AM
GOLD FLEET DISCOUNTS for all Master Builders Members.
HILUX 4x4. NOW WITH A 5 STAR ANCAP SAFETY RATING. As a member of the Master Builders Association, don’t forget that you are eligible for full Gold Fleet Discounts on all Toyota Models*, not just HiLux. To find out more contact 1800 444 847 for your local Toyota Fleet Specialist Dealer. ®
* Excluding Special Edition models.
2014
toyota.com.au
MB Feb-Mar 14 magazine.indd 25
4/02/2014 11:25:16 AM
Contracts & disputes Jeff Poultney – Manager Legal & Contracts
Cost escalation – residential contracts A Master Builders Residential Building Contract can help minimise the costs of onsite delays. Most residential contracts will incur delays of some description during the course of the works. These delays can be caused by a variety of things like, inclement weather, variations, delayed information from the owner, delays in supply of material and authority approvals. A Master Builders Residential Building Contract (RBC) makes provisions for a contractor to claim for extensions of time under Clause 15 for this type of delay. It also allows the contractor to claim ‘cost escalation’ (delay costs) under Clause 25 or 26, whether a claim for an extension of time has been made or not. Cost escalation under residential contracts and the RBC are regulated under the Domestic Building Contracts Act 2000, Sections 56 and 90. Section 56 sets out the criteria around which a contractual provision can be drafted and Section 90 deals with the limit to which cost escalation can be claimed. Because of the operation of a cost escalation clause contained in the contract, contractors should be aware that an owner may have a right to terminate a contract where the contract price increases by 15% or more after the contract is entered into.
In Master Builders RBC, cost escalation is at Item 17 of the schedule, which indicates that cost escalation does apply to the contract, but only if the owner has initialled either Clause 25 or 26 depending on the contract price. These contract provisions have been included in the RBC to give our members the opportunity to recover the costs they incur when the works under a contract are delayed for any reason other than delays caused by the contractor. Master Builders recommends you implement cost escalation as it can, in the final financial summary of a contract, be used as a good negotiating tool, especially where the owner is attempting to apply liquidated damages unreasonably. For further information, contact Master Builders on (07) 3225 6426 or email contracts@masterbuilders.asn.au
YOU SHOULD IMPLEMENT COST ESCALATION AS IT CAN, IN THE FINAL FINANCIAL SUMMARY OF A CONTRACT, BE USED AS A GOOD NEGOTIATING TOOL.
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4/02/2014 11:25:19 AM
Employment & wages Mikki Richardson – Senior Advisor Workplace Relations
Psychiatric or psychological injury The Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2013 (the Act) was recently passed in Parliament, bringing about a number of changes to Queensland’s workers’ compensation scheme.
•
A decision not to award or provide promotion, reclassification or transfer of, or leave of absence or benefit in connection with, the worker’s employment.
TIP (b) The worker’s expectation or perception of reasonable management action being taken against the worker;
The Act introduces a number of changes to the scheme, including redefining the definition of ‘injury’ for the purposes of psychiatric or psychological injury (PPI) claims.
(c) Action by the Regulator or an insurer in connection with the worker’s application for compensation.
What is an ‘injury’? Under the Act, the definition of injury is a: “Personal injury arising out of, or in the course of, employment if – for any injury other than a psychiatric or psychological disorder – the employment is a significant contributing factor to the injury”.
Examples of actions that may be reasonable management actions taken in a reasonable way include: •
Setting reasonable performance goals, standards and deadlines
•
Rostering and allocating working hours where the requirements are reasonable
•
Transferring a worker for operational reasons
•
Informing a worker about unsatisfactory work performance when undertaken in accordance with any workplace policies or agreements such as performance management guidelines
“A psychiatric or psychological disorder arising out of, or in the course of, any of the following circumstances—
•
Informing a worker about inappropriate behaviour in an objective and confidential way
(a) Reasonable management action taken in a reasonable way by the employer in connection with the worker’s employment;
•
In the instance of a PPI claim, applicants will be required to illustrate that their employment is “the major significant contributing factor” to the disorder. This will apply to any claims for compensation from 29 October 2013, including aggravations of pre-existing conditions.
What is not an ‘injury’? The Act provides for a number of exclusions that are considered when assessing a PPI, and clearly states that injury does not include:
Action taken to transfer, demote, discipline, redeploy, retrench or dismiss the worker if done in a reasonable way
Review your performance management processes to ensure a fair and reasonable approach is taken when disciplining employees
Review your workplace bullying and harassment policy and carry out annual refresher training for all employees.
Deciding on a claim When making a decision on a PPI claim, WorkCover will apply the criteria and exclusions outlined in the Act. This includes excluding as a contributing factor any reasonable management action taken in a reasonable way. When making a claim the onus of proof is on the worker to provide sufficient evidence in support of their claim. This includes factual evidence on: •
Date and time of when the events took place
•
Who was involved
•
What happened/what was said/the manner in which it was said
•
Name and contact details of witnesses who directly saw it happen.
This information is then provided to the employer who is provided an opportunity to respond to the allegations. Once all of the information is collected, a decision will generally be made within 20 days. For more information, contact Master Builders on (07) 3225 6407 or email workplacerelations@masterbuilders.asn.au
WHEN MAKING A DECISION ON A PPI CLAIM, WORKCOVER WILL APPLY THE CRITERIA AND EXCLUSIONS OUTLINED IN THE ACT.
Disclaimer: This information is provided as general advice on the workplace relations system. It does not constitute legal advice and it is always advisable to seek further information regarding specific workplace relations issues. february/march 14
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4/02/2014 11:25:25 AM
Employment & wages Mikki Richardson – Senior Advisor Workplace Relations
Changes to apprentice rates of pay A recent decision of the Fair Work Commission addressing a range of apprentice conditions was handed down by the Full Bench on 22 August 2013.
From the first pay period commencing on or after 1 January 2015: % of the standard rate (apprentices who have not completed year 12)
% of the standard rate (apprentices who have completed year 12)
1st year
50
55
2nd year
60
65
3rd year
75
75
4th year
90
90
Year of apprenticeship
Does this affect me? This decision will only affect those employers paying under the Modern Award and for changes to wage rates, only those apprentices who commence their apprenticeship on or after 1 January 2014. Employers affected by this change are: •
Constitutional Corporations (Pty Ltd) established on or after 27 March 2006; and
These changes will only apply to apprentices commencing from 1 January 2014.
•
Sole traders and Partnership established on or after 1 January 2010.
No reduction in pay
Any apprentices engaged by an affected employer prior to 1 January 2014 will experience no change to their wage rates.
The changes Wages The relativities for junior apprentices will be amended as follows:
An employee who has worked full-time for an employer for at least six months, or for 12 months as a part-time or casual employee, before commencing an adult apprenticeship with the same employer, will not suffer a reduction in their minimum rate of pay. Competency-based wage progression
From 1 January 2014: % of the standard rate (apprentices who have not completed year 12)
% of the standard rate (apprentices who have completed year 12)
1st year
50
50
2nd year
60
60
3rd year
75
75
4th year
90
90
Year of apprenticeship
An existing employee must not suffer a reduction in their minimum rate of pay.
Competency-based wage progression has been introduced, effective 1 January 2014. This will provide an opportunity for apprentices to progress to the next year level upon completion of the relevant proportion of the total units of competency, rather than through the traditional time based approach. For those employers excluded by these changes, who respond to the Queensland Training Order of the QIRC, competency-based training is already established.
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Employment & wages
Travel time, travel and accommodation costs, and recognition of training
Period
Apprentices will receive compensation for ‘excess travel costs’ for attendance at block release training that requires an overnight stay, except where there is the opportunity for the apprentice to attend an alternative RTO at a location closer to the usual workplace, and the distant RTO was not mutually agreed to by the employer and apprentice.
1 2 3 4
This variation will apply to all apprentices (regardless of commencement date) from 1 January 2014.
The period of notice is increased by one week if the employee is over 45 years old and has had at least two years’ service.
Training costs, fees and text books
Employee giving notice to employer: Same as above, except no additional weeks’ notice if the employee is over 45 years old.
Employee’s period of continuous service with the employer at the end of the day the notice is given. Not more than one year More than one year but not more than three years More than three years but not more than five years More than five years
Period One week Two weeks Three weeks Four weeks
All fees charged by an RTO and the cost of all prescribed textbooks for the apprenticeship, which are paid by an apprentice, shall be reimbursed by the employer:
This variation will apply to all apprentices (regardless of commencement date) from 1 January 2014.
•
Within six months of commencement of the apprenticeship; or
Wage circulars
•
At a stage of the apprenticeship; or
Circulars are now available on our website for members to access.
•
Within three months of the commencement of training provided by the RTO, whichever is the later, unless there is unsatisfactory progress.
For more information, contact Master Builders on (07) 3225 6407 or email workplacerelations@masterbuilders.asn.au
An employer may meet its obligations under this clause by paying any fees and/or cost of textbooks directly to the RTO. This variation will apply to all apprentices (regardless of commencement date) from 1 January 2014. Notice of termination under the National Employment Standards An apprentice’s minimum notice or payment in lieu is based on length of service.
THIS DECISION WILL ONLY AFFECT THOSE EMPLOYERS PAYING UNDER THE MODERN AWARD.
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4/02/2014 11:25:31 AM
Building & planning Tony Mitchell – Manager Building Services
Changes to Australian Standard for fixed platforms, walkways, stairways and ladders What is AS 1657–2013? This standard sets out requirements for the design, selection, construction and installation of fixed platforms, walkways, stairways and ladders that are intended to provide safe access to places used by operating, inspection, maintenance and servicing personnel. This standard also applies to the following: •
Movable platforms that are permanently configured but that may be site adjustable or site assembled/modified
•
Permanently installed roof access, where such access is for the purpose of installing, operating, inspecting, maintaining or servicing equipment that is located on, or is accessible from the roof
•
Permanently installed access for inspection and maintenance of the roof itself
•
May also be used for guidance in providing access to some parts of mobile plant, light and telecommunication towers, wind turbine towers and water and sewerage facilities.
What is excluded from the standard? This standard does not apply to the following:
On 10 December 2013, Standards Australia published a new version of AS 1657–2013 Fixed platforms, walkways, stairways and ladders – design, construction and installation.
•
Scaffolding that may be used in similar situations
•
Access for people with disabilities
•
Temporary access, e.g. by means of portable ladders
•
Access and egress to buildings covered by the NCC
•
Attic-type ladders
•
Access to lift machine rooms.
The 1992 version of the standard is currently a referenced document within both Volume 1 and 2 of the National Construction Code (NCC). It is expected that the new version of the standard will now be referenced within the 2014 edition of the building codes.
Contractors are advised that the changes to the standard may affect building costs on particular projects. Contractors should reconfirm their costings for projects that will achieve development approval after 1 May 2014.
The revised standard was prepared by the Committee SF–013, which has representation from Master Builders and government, with input from the construction sector and work health and safety experts.
IT IS ENVISAGED THAT THIS NEW STANDARD WILL HELP TO REDUCE AMBIGUITY, PROVIDE GUIDELINES FOR MANUFACTURERS AND BRING GREATER SAFETY FOR USERS WHO ACCESS FIXED LADDERS, PLATFORMS AND WALKWAYS.
It is envisaged that this new standard will help to reduce ambiguity, provide guidelines for manufacturers and bring greater safety for users who access fixed ladders, platforms and walkways.
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Building & planning
What has changed? For the building and construction industry this will affect the ‘deemed to satisfy’ provisions and ‘acceptable construction practices’ under the Building Code for non-habitable rooms and areas such as attics, storerooms, fixed platforms, walkways, stairways, machinery rooms, boiler houses, lift machine rooms, plant rooms and the like. The committee initially considered a number of International Standards on the subject of platforms, walkways, stairways and ladders for gaining access to machinery. However, these were considered unsuitable to adopt as an Australian Standard and only some of that material has been used. The committee also considered the need to improve compatibility with the NCC, which provides a uniform set of technical provisions for the design and construction of buildings throughout Australia.
•
References to the regulatory authority have been removed
•
All requirements pertaining to a particular form of access (e.g. stairways, ladders etc.) are grouped together
•
A broader scope of testing of products and more complete test methods have been included
•
The issue of slip resistance of walking surfaces has been highlighted, and informative references to relevant Australian Standards and handbooks included
Changes to the new version of AS 1657–2013 include the following: •
The inclusion of single stile ladders, as they are used in other parts of the world
•
Access to roofs for the installation or maintenance of equipment, e.g. airconditioning plants
•
Testing of a wider range of products has been introduced for use when verification by engineering analysis is not possible, practicable or when the products are
proprietary products and proof of performance is required.
Summary The revised standard sets out the requirements for the design, selection, construction and installation details for various areas requiring access within buildings. Contractors are advised to discuss these obligations with their suppliers, building designer and certifier before they price works that would achieve development approval after 1 May 2014. Contractors can also purchase their own copy of the standard by visiting our website at www.masterbuilders.asn.au/building-andplanning/australian-standards For more information, call Master Builders on (07) 3225 6419 or email technical@masterbuilders.asn.au
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Building & planning Karen Haworth – Manager Planning Services
Design and siting standards for class 1 and class 10 buildings The Queensland Development Code (QDC) provides the standard requirements for the siting of class 1 and class 10 buildings. There are two standards currently in place: MP 1.1 Design and siting standard for single detached housing – on lots under 450m² and MP 1.2 Design and siting standard for single detached housing – on lots 450m² and over. However, local government planning schemes, local laws, State Acts and other Integrated Development Assessment System codes may impose additional or alternative requirements.
Purpose of siting standards The purpose for a design and siting standard is to provide good residential design that promotes the efficient use of a lot. The standard also provides acceptable solutions for acceptable amenity to residents and off street parking.
MP 1.2 Design and siting standard for single detached housing – on lots 450m² and over The standard has two elements, these are: 1. Element 1 – Design and siting of building and structures, which provides requirements for boundary setbacks, for dwelling and garage and/or carport. Also provides requirements for screening for privacy of adjoining dwellings. 2. Element 2 – Space for on-site car parking, which provides requirements for sufficient parking on-site to satisfy the need of the residents and visitors. Small lots – under 450m² Generally, under local planning schemes small
lots are identified as being lots under 450m² and/or less than 15 metres average width and if it is a rear allotment, has an area less than 600 square metres. The boundary setbacks are usually set by a small lot code within the local planning scheme. Standard lots – over 450m² Under a local planning scheme a standard lot is 450m² or more, is more than 15 metres wide and if a rear allotment, has an area more than 600 square metres. Boundary setbacks are defined by the QDC. Some local councils could also have rural lots or the like in their planning scheme. Whilst the QDC standard gives you a general standard requirement to comply to, I strongly suggest you also refer to the local planning scheme for any siting variation. For more information, call Master Builders on (07) 3225 6419 or email housing@masterbuilders.asn.au
MP 1.1 Design and siting standard for single detached housing – on lots under 450m² The standard has three elements, these are: 1. Element 1 – Design and siting of buildings and structures, which outlines the location of the building and what the minimum setbacks need to be. The front setback could alter if there are existing houses already built with differing setbacks. The side and rear setbacks will alter depending on the size of the lot and the height of the building. This element will also provide required setbacks for garages and carports and required screening where the adjoining dwelling is within 1.5 metres and does not have adequate privacy. 2. Element 2 – Space for on-site car parking, which provides requirements for sufficient parking on-site to satisfy the need of the residents and visitors. 3. Element 3 – Outdoor living space, which ensures a detached dwelling has its own individual outdoor living space and it is a suitable size and slope.
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THE PURPOSE FOR A DESIGN AND SITING STANDARD IS TO PROVIDE GOOD RESIDENTIAL DESIGN THAT PROMOTES THE EFFICIENT USE OF A LOT.
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Feature
Concepts in contemporary and traditional balustrade mb
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Feature
equate the function of balustrade with the traditional construction methodology of using an array of vertical balusters. Though the term ‘balustrade’ is now routinely informally used to describe the function of providing a barrier to protecting individuals from falls, this usage is technically incorrect. Therefore most professionals, such as architects and builders, prefer the usage of the term ‘void-edge protection’ on technical documents and plans to refer to the barrier structure. However, the term ‘balustrade’ continues in common use, but is now taken to refer to the general concept of void-edge protection, rather than the traditional and ‘correct’ definition.
Traditional definitions and history Balustrades are historically defined, moulded poles that support the handrail of a staircase or create the individual shafts in parapets, fencing, gates and railings.
The traditional definition of balustrade is being a row of repeating balusters – small posts that support the upper rail of a railing. However, balustrade is also taken to mean ‘voidedge protection’ – a phrase that describes the function or role of the structure, rather than relating to its appearance or specific construction methodology.
The earliest representations of balustrade have been noted in ancient Assyrian bas-reliefs as window balustrades. A single vertical member is called a ‘baluster’, and the plural form is ‘balustrade’. The term ‘balustrade’ developed from the Italian word ‘balaustra’, meaning pomegranate flower, because of the similarity to the curved form of the half-open flower.
Void-edge protection In casual usage, the term balustrade is no longer taken to mean an array of traditional spindle-moulded balusters. In a modern architectural context, arrays of vertical balusters are rarely employed, with an array of alternative structural (e.g. cantilevered panels or stanchions) and infill materials (glass panels, solid wall framing, folded metal, etc.) being preferred. Where vertical infill members do exist (e.g. timber or stainless steel battens), they rarely serve the traditional role of providing structural support to the top rail of the structure. This is partly because advances in materials and construction methods have removed the design constraints that determined the use of rows of vertical balusters. The evolution and dominance of the modernist aesthetic since the 1920’s has led to a variety of forms being preferred over the relatively ornate and detailed appearance of traditional balustrade. The diversity of possible designs and structural approaches means it is no longer possible to february/march 14
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Feature The degree of complexity or ornamentation varies, and does depend on the historical style in consideration. The Baroque style, for instance, was particularly ornate and decorative. A traditional ‘Queenslander’ homestead balustrade incorporates balusters of a relatively simple profile, but may include various forms of ornamentation in the posts or between balusters.
Modern balustrade In contrast to traditional designs, contemporary balustrade design tends to aim for simplicity, through clean lines and the definition of geometric shapes. Ornamentation is virtually eliminated. In line with other trends in modern architecture, it makes an impact generally through the use of contrasting materials. A common modern design priority is to create the impression of space and openness. The strength inherent in stainless steel or mild steel stanchions or posts means that, when they are employed, they can be situated at relatively long intervals. The use of glass infill panels also contributes to the sense of light and space. Another feature of modern balustrading is the ‘frameless cantilevered’ approach, where the glass itself is a structural element that supports the handrail from a structural connection to the floor or void edge through a vertical cantilever. This allows the architect to eliminate not only the balusters, but also the stanchions/ posts, in the balustrade design. Clearly, these newer approaches to balustrades display a trend towards minimalism and functionalism, consistent with the broader architectural movement in modernism that has been occurring for more than a century.
New directions in balustrade With the current trend towards more organic and playful approaches to architecture, it will be interesting to observe how this affects balustrade design. The increased use of new materials, such as solid surface acrylic products, seems certain. Since transparency will probably always be a priority, ‘high tech’ materials that permit light to penetrate, but aren’t yet strong enough to fulfil the role of void edge protection, will probably play a role. Whatever comes next for balustrade, it is probably safe to say that the traditional turned baluster will never again make an appearance. Ancient balustrades were moulded and hand-carved from material such as bronze, marble, or timber. In the 20th century, traditional designs have been recreated in materials such as polystyrene, various hardwoods and softwoods, wrought iron, glass, polymer stone, cast stone and plaster. Wooden and stone balustrades are classically shaped on a turner’s lathe, which spins an unshaped block to cut and sand it with symmetry. Ornamental lathes can create balustrades of amazing complexity, using two centres or axis of rotation. Concrete, iron, plaster and polymer balustrades are created from cast moulds.
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This article was contributed by Arden Architectural Stairs. Arden Architectural Staircases design, supply and install high quality products in the residential and commercial building construction sector. Arden provides comprehensive design, fabrication and construction services for stair and balustrade projects in Brisbane, Sydney and Melbourne.
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Laws, codes & regulations Darren Ho – BCCS Law
The importance of contemporaneous notes in building and construction disputes Contemporaneous notes are notes made at, or around, the time of the events being noted in building and construction industry disputes. They are also made with regards to other legal issues, such as workplace health and safety incidents and insurance claims, often making them crucial. In fact, they can sometimes mean the difference between a successful outcome and an unsuccessful outcome.
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The absence of formal written correspondence, or minimal correspondence, combined with the fact that most building and construction disputes don’t normally arise until a significant period of time has lapsed from when the original events occurred, creates difficulties in proving or defending a claim, especially as the recollection of key personnel may be hazy at best.
• Electrical leads and power tools must be tested and tagged.
SAFETY FOOTWEAR MUST BE WORN
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This article will briefly discuss the benefits of keeping a detailed diary and noting relevant events, as well as the importance of keeping other forms of contemporaneous notes, including all contract correspondence. Contemporaneous notes are important in disputes because, often, formal written correspondence like letters, delay notifications and variation documents, which detail relevant events, are either nonexistent or insufficient.
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Usually, these notes are either diary notes (from site diaries, personal diaries, etc.) or minutes of meetings.
This can mean that it is not possible to prove a claim to the required civil standard (being on the balance of probabilities), or defend a claim (such as, for example, a variation claim from a subcontractor, or a claim for liquidated damages). To combat this problem, we recommend that, in addition to all contractual notices and documentation, you also keep a daily diary recording all relevant events in relation to each project. This applies regardless of whether you are a contractor or subcontractor, and whether or not you carry out domestic or commercial work.
THERE IS NO RIGHT OR WRONG WAY OF RECORDING THE INFORMATION, PROVIDING THAT THE INFORMATION IS KEPT AND CAN BE REFERRED TO SUBSEQUENTLY.
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Laws, codes & regulations
Whilst the more detailed the information the better, the diary should at the least record: •
Details of any meetings held on site, including who attended, what was discussed, and the outcome of those discussions
•
Details of any delays to the project, including specific details of the reason for the delay, and of any action taken to mitigate the effects of the delay
•
Details of the staff and subcontractors present on the site during that day (and ideally the starting and finishing times)
Extracts from the diary can also be taken and attached to any necessary affidavit (in a proceeding in a court or tribunal) or any necessary statutory declaration (given in support of any adjudication application or adjudication response under the Building and Construction Industry Payments Act 2004), to support the statements of events contained in the affidavit or statutory declaration. Examples of circumstances where diary notes have assisted in favourably resolving disputes include: •
When proving that variations to a contract were requested or directed, including domestic building work contracts where the requirements for variations, specified in the Domestic Building Contracts Act 2000, have not been complied with
•
In proving delays caused to the project by alternate trades, or by the head contractor, for claiming extensions of time
Obviously the more information you include, the better.
•
In defending against claims for liquidation damages.
Depending on the size of your business it may be easier for you to maintain a single diary for all of your projects. Alternatively, you could maintain a separate diary for each project, in which case the diary can be left on site and potentially maintained by multiple people.
For more information, or to discuss a dispute, please contact Darren Ho from BCCS Law on (07) 3106 7212.
•
Details of any directions or variations given by you or to you
•
Details of any notifications given by you or to you in relation to delays or variations
•
Details of any information requested by you or given to you.
There is no right or wrong way of recording the information, providing that the information is kept and can be referred to subsequently. In the event that a dispute occurs, keeping the information located in a diary gives you a single location to obtain the requisite information.
Disclaimer: The contents of this article are in the nature of general comment only and do not purport, and are not intended, to provide advice to any person or class of persons on any matter whatsoever. A reader of this article must not rely on, or act on the basis of, any of its contents, and should always obtain appropriate legal advice specific to his or her own particular circumstances.
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Health, safety & environment
Are you showing innovation in the area of work health and safety? With entries for the 2014 Master Builders Housing and Construction Awards now open members, who have developed leading edge solutions for safety problems faced while managing projects, are invited to enter the Innovation in Workplace Health and Safety category. We are looking for members who have designed or developed a procedure or product that exceeds current industry best practice or is unique in its application. While the hazard or risk may be a common industry matter, the solution should be innovative and improve effectiveness. Previous winners have won the category for redesigning a piece of plant or equipment to
reduce risks, developing safer tools and altering a construction process to improve safety outcomes. Last year’s winner designed a rotating pad for trucks so there was no need for reversing after delivering their inventory. Whether you are a sole trader, a large company or anything in between, we encourage everyone to consider challenges faced and innovative ways they have been overcome. It’s an opportunity to share with the industry and the public your business’ forward thinking in safety. For more information about entering the awards, see page 20.
Building Construction & Conveyancing Solutions Pty Ltd
Employers who pay their workers Constructing Legal Solutions for the Industry
Contact Darren Ho P: +61 7 3106 7212 | F: +61 7 3221 6099 E: dho@bccslaw.com.au A: Level 9, 231 North Quay, Brisbane, QLD 4000
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Health, safety & environment Stephanie Gaylard – Manager Workplace Health & Safety
Review of OHS Accreditation Scheme The government has recently agreed that the Department of Employment will conduct a review of the Australian Government Building and Construction OHS Accreditation Scheme in the first half of 2014. The Australian Government Building and Construction OHS Accreditation Scheme (the Scheme), which is administered by the Office of the Federal Safety Commissioner, was introduced following the Cole Royal Commission into the building and construction industry, where recommendations were made for the Australian Government to influence and improve occupational health and safety (OHS) performance within the industry. It has been applied to approximately 1,000 projects since it was introduced in 2005. The scheme is an OHS accreditation scheme for Australian Government building and construction work, and only builders who obtain accreditation under this scheme can enter into head contracts for building work that is funded directly or indirectly by the Australian Government. For this reason it has been designed to set a high benchmark in relation to safety management and systems, and as a result of this, obtaining and maintaining accreditation can be a lengthy and detailed process. Some builders have advised that it has taken them up to a year to reach the standards which are required in order to be accredited. The accreditation process is currently a two-stage process consisting of a desktop assessment and an onsite audit and accreditation is valid for up to three years from the date of accreditation.
New Codes of Practice introduced in Queensland As part of the national harmonisation of work health and safety laws, the Honourable Jarrod Bleijie MP, Attorney-General and Minister for Justice has approved eight new national Codes of Practice which took effect on 1 December 2013. It is important that the industry familiarise themselves with the new Codes of Practice and make any appropriate adjustments to their systems and work practices. The Codes introduced on 1 December 2013 include: •
Abrasive Blasting Code of Practice 2013
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Demolition Work Code of Practice 2013
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Excavation Work Code of Practice 2013
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Managing Risks of Hazardous Chemicals in the Workplace Code of Practice 2013
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Managing Risks of Plant in the Workplace Code of Practice 2013
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Safe Design of Structures Code of Practice 2013
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Spray Painting and Powder Coating Code of Practice 2013
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Welding Processes Code of Practice 2013
In addition to the new codes, the Tunneling Code of Practice 2007 has been replaced by the Safe Work Australia Tunneling Guide.
Copies of the new codes can be found on the Workplace Health and Safety Queensland website at www.deir.qld.gov.au/workplace/ law/codes/index.htm On 1 January 2014 there were also changes made to the Queensland electrical safety Codes of Practice. This was done to align the codes with the amended Electrical Safety Act 2002 and new Electrical Safety Regulation 2013, which also commenced on 1 January 2014. The following electrical safety Codes of Practice now apply in Queensland, and the industry should familiarise themselves with: •
The Electrical Safety Code of Practice 2013 – Managing Electrical Risks in the Workplace, which replaces the Electrical Safety Code of Practice 2010 – Electrical Work.
•
The Electrical Safety Code of Practice 2010 – Working Near Overhead and Underground Electric Lines, which has been renamed and updated. It replaces the Electrical Safety Code of Practice 2010 – Working Near Exposed Live Parts.
•
The Electrical Safety Code of Practice 2010 – Electrical Equipment Rural Industry and the Electrical Safety Code of Practice 2010 – Works, which have both been updated.
Copies of these codes, as well as the amended Electrical Safety Act 2002 and new Electrical Safety Regulation 2013 can be found on the Electrical Safety Office website at: www.justice. qld.gov.au/fair-and-safe-work/electrical-safety/ laws-and-compliance For more information regarding the review of the Australian Government Building and Construction OHS Accreditation Scheme or the new Codes of Practice, contact Master Builders on (07) 3225 6404 or email whs@masterbuilders.asn.au
While Master Builders is supportive of the Scheme, it has been brought to our attention by our members that there are aspects that aren’t working as effectively as they could be. For this reason Master Builders is also supportive of an independent review in order for these aspects to be rectified. Master Builders Australia is currently in the process of drafting a submission to the Office of the Federal Safety Commissioner which will put forward the issues raised by our members who are accredited under this scheme.
IT HAS BEEN DESIGNED TO SET A HIGH BENCHMARK IN RELATION TO SAFETY MANAGEMENT AND SYSTEMS. february/march 14
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Health, safety & environment Rachael Vickers – Workplace Health & Safety/Environment Advisor
Recent changes to falls from heights legislation The Queensland Government recently announced amendments to the management of falls from heights legislation in the Work Health and Safety Regulation 2011. The amended falls from heights legislation clarifies requirements for what is required by a person who conducts a business or undertaking (PCBU) when the risk of a fall is less than three metres in housing construction work, or less than two metres in other construction work, or construction work on a roof with a slope not over 26 degrees. These requirements include: •
Ensuring that each hazard that may result in a fall or cause death or injury if a person were to fall is identified;
•
That these hazards are assessed;
•
That control measures are implemented to prevent or minimise the risk to workers and others.
When there is a risk of fall of at least three metres in housing construction, or at least two metres in other construction work, or construction work on a roof with a slope over 26 degrees, a PCBU must ensure that a person cannot fall any distance. If prevention is not reasonably practicable a PCBU must use control measures to assess a person’s fall and ensure those measures prevent or minimise the risk of death or injury. These control measures are outlined in the Work Health and Safety Regulation 2011. Although specific control measures are only prescribed when working at the heights specified above, when working under these heights it is important that PCBU’s keep in mind that a risk assessment still needs to be undertaken to ensure there are no additional risks present, such
PRINCIPAL CONTRACTORS WILL NEED TO ENSURE THAT WORK HEALTH AND SAFETY MANAGEMENT PLANS AND WORK PROCEDURES ARE REVIEWED TO ALIGN WITH THE CHANGES.
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as working near a fence line or over steel or other objects. If risks such as these are present, additional controls will need to be put in place regardless of the height at which the person is working. Principal contractors will need to ensure that Work Health and Safety Management Plans and work procedures are reviewed to align with the changes. PCBU’s will need to review their Safe Work Method Statements (SWMS) to ensure the tasks they undertake consider the amendments. Consultation between principal contractors and sub-contractors is important to manage the changes and ensure that everyone is aware of their new responsibilities, not only for procedural matters but also as to the supply of fall control equipment. For more information about the legislation amendments, contact Master Builders on (07) 3225 6404 or email whs@masterbuilders.asn.au
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Member discounts Master Builders helps members operate more profitable businesses through a range of exclusive member discounts and special deals on products and services. With 130 years’ experience delivering solutions to big and small, commercial and housing, builders and trade contractors across Queensland, Master Builders has the buying power and the knowhow to help members save time and money. For more information about these discounts and other special off ers and competitions, go to www.masterbuilders.asn.au/member-discounts or call 1300 55 11 61.
Office supplies
Phones & internet
Training & licensing
Master Builders members receive up to 25% off OfficeMax’s large range of office products, technology, furniture, medical, café and cleaning supplies.
Master Builders members receive significant savings on a wide range of Telstra mobile, landline and internet products.
Members can receive up to 30% off Master Builders range of practical and flexible training courses and licensing services, which have been developed specifically for the industry.
Motor vehicles Need a new vehicle? Master Builders can take care of all your motor vehicle needs – from sourcing and purchasing vehicles, to vehicle finance, maintenance, servicing and fuel.
Fuel cards Our exclusive deal with Caltex saves members more than 50% off the monthly fee on StarCard fuel cards and 3 cents per litre off the pump price for diesel and unleaded fuel.
Europcar Master Builders members can get away for less with an exclusive 10% off the best car rental rate of the day with Europcar.
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Community projects
Ongoing support for our MATES in Construction The Master Builders Foundation will provide ongoing funding for a Queensland Field Officer at MATES in Construction (MIC), covering the period October 2013 to September 2014.
The Foundation will also be a major state partner with MIC, initially for a period of two years. MIC has now reached a significant milestone with 35,094 workers having now participated in General Awareness Training since the program commenced in 2008, while 2,688 workers have undertaken Connector Training and 333 are now trained in suicide first aid (ASIST). The organisation has provided case management to 1,949 workers, and assisted workers in finding alternatives to their thoughts of suicide on 263 occasions. Over this period of time, MIC has engaged with 621 sites in the industry and in the month of December 2013 was active on 30 sites, with 12 gaining MIC Accreditation. MIC originated in Queensland, providing a community development program of suicide prevention and intervention to the Queensland construction industry. The continuing support of Master Builders and other organisations has enabled the program to expand to rural and regional areas in the state, including the Surat and Bowen basins. On top of this, MIC was awarded Suicide Prevention Australia’s Life Award in 2009, 2010, 2011 and 2012, and the National Safety Council Award in 2012. Two new field officers, Phil Hortz and Dave Bobovic, have also been working with MIC since 1 July 2013. Phil has had extensive involvement with MIC while working for Abigroup and the Gold Coast Light Rail Project, where he worked in community engagement, making his contributions invaluable. Dave was a carpenter/builder who ran his own business for a number of years, and more recently developed extensive experience in training. He has been allocated to working with the contractors that form Master Builders.
THE ORGANISATION HAS ASSISTED WORKERS IN FINDING ALTERNATIVES TO THEIR THOUGHTS OF SUICIDE ON 263 OCCASIONS. mb
In July 2013, a group of Master Builders staff participated in General Awareness Training sessions in the Brisbane office. This one-hour conversation gave staff the opportunity to learn more about suicide and mental health, and will be offered to more staff in future sessions. If you’re interested in partnering with MIC, contact Ian Godbold, MIC Marketing Manager on (07) 3833 1140 or email igodbold@matesinconstruction.org.au
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Mastering your business
Building industry challenges As a builder, do you have the management breadth to overcome all the typical industry challenges you may face throughout your career? Are you effectively managing all of the below challenges? Tick the boxes if you are. Cash flow issues
If a proprietor of a business isn’t personally across all strategic issues, then those issues must be covered by internal management staff or external consultants brought in for advice, as required.
Insolvent clients One of the most common weaknesses many building industry businesses face is marketing. This is typical in a lot of trade-based industries, and this is often where a lot of good businesses can fall down.
Quality issues Marketing Jobs gone bad
A good marketing strategy helps you define your vision, mission and business goals, and involves careful targeting. It should be planned and developed in consultation with your team and outline the steps you need to take to achieve your business goals.
Australian Taxation Office QBCC compliance Sub-contractor problems
It doesn’t need to be an expensive exercise but if it’s smart, it will produce strong sales. Another timely issue to keep in mind is ensuring your business complies with the Queensland Building and Construction Commission (QBCC), which recently replaced the BSA. Compliance is essential to continue trading, and it’s important to ensure your details are always up to date. Expertise in this field can present the business’ position in an optimum manner and take pressure off the compliance process. If you are struggling in this field, get help. Spend some time getting on top of these issues and your business will reap the benefits. This article was contributed by AMR Commercial – a management consultancy firm with over 20 years’ experience, specialising in business development and business turnaround. They have significant experience in the building industry and are happy to hold discussions with businesses in the building industry on a no cost, no obligation basis. Feel free to contact David Rosenblum on (07) 3394 1722.
Creditor pressure
What’s your score? In order to effectively run your business, it is essential to ensure you are across the range of industry challenges that can arise on a day-today basis. The building industry is gradually entering a period of steady and sustained growth, where well-managed and well-placed companies can generate strong profitability. This comes on the back of a long period of difficult trading where a lot of builders have gone to the wall and where others have been hanging on by the skin of their teeth. The building industry has always been challenging, and the successful companies have always addressed the key challenges through strong management.
IT IS ESSENTIAL TO ENSURE YOU ARE ACROSS THE RANGE OF INDUSTRY CHALLENGES THAT CAN ARISE ON A DAYTO-DAY BASIS.
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Mastering your business Sue Hirst – Co-founder of CFO On-Call
9 keys to small business growth for 2014 of doing things. There could be tens of thousands of dollars in savings lurking here. 5. Net Profit – the result of your Gross Profit less Overheads. Check out how yours compares to those in your industry by percentage. Are you getting a good enough return for your efforts? 6. Accounts Receivable – there are many factors affecting how long customers take to pay – from how/when you invoice them to how/when they pay up. Find ways to speed it up. 7. Accounts Payable – on the other side of the ledger – how can you find ways to stretch your terms with suppliers without damaging relations? Improve terms in your favour.
Make 2014 the year to make your small business grow and succeed. Have you returned to work feeling refreshed and energised about what you can achieve this year? Even if you didn’t have a break, now is a great time to start afresh and take the opportunity to review things for better financial performance in 2014. Use the New Year as an opportunity to take a ‘helicopter view’ of your business and formulate a business growth plan to achieve better profit, cash flow and efficiency. Here are some key tips for small business growth: 1. Income – what can you do to improve it? What are your Key Performance Indicators (KPIs) impacting income? Can you capitalise on modern marketing methods e.g. digital marketing? What are the key drivers to achieve sales numbers in your business? 2. Cost of Goods (COGs) – what are they and how are they different from overheads?
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COGs are the costs directly associated with your product/service e.g. service labour and materials, product purchase, freight inwards, customs. etc. How can they be more cost effective and efficient? Think ‘productivity’. 3. Gross Profit – the result of your income less COGs. Check out yours compared to others in your industry by percentage. Percentage is the easiest and most accurate way to do the comparison. 4. Overheads – this is always a good place to find savings, efficiencies and modern ways
8. Work in Progress – i.e. jobs in progress that haven’t been invoiced to customers yet, including labour and materials. A sure way to improve cash flow is to find ways to speed up finishing jobs, so they can be invoiced. Also reducing rework and any excuses for customers not to pay for finished work. Improve profit on jobs with focus on labour productivity and materials management. 9. Stock management – think of stock as dollar bills piled up on the stock room floor. You want it sitting there for as little time as possible i.e. enough for customers’ needs, but not too much to suck up precious cash. Happy New Year and good luck with your small business growth and development plans! CFO On-Call is a team of Financial and Business Advisors, who work with open-minded people committed to business growth and achieving success. For more information call 1300 36 24 36 or visit www.CFOonCall.com.au.
NOW IS A GREAT TIME TO START AFRESH AND TAKE THE OPPORTUNITY TO REVIEW THINGS FOR BETTER FINANCIAL PERFORMANCE IN 2014.
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Phones & internet
How much is your driver’s licence worth? Mobile phones are an important means of communication, especially for people in the busy building and construction industry. With limited downtime, it’s tempting to catch-up on things when you’re driving, but doing so can increase the risk of an accident. Research conducted by the Australian Government shows that making a voice call on a mobile phone while driving increases the risk of being involved in a motor vehicle accident by as much as four times. Shockingly, sending a text message while behind the wheel can increase this risk to 23 times. Despite the dangers and illegality, approximately 25% of recently surveyed Queensland drivers reported using their handheld mobile phone on a daily basis to answer or make calls, as well as read text messages, while 14% reported using their hand-held phone to send a text message on a daily basis.
So, there is little wonder why all Australian states and territories have outlawed the use of a mobile phone while driving. But, did you know that ‘using a device’ includes holding a mobile phone or resting one in your lap, resting it in the cup holder of your car, even if you’re at traffic lights or not even engaged in a phone call? Smart drivers are preparing themselves by installing a car kit for their mobile phone. As a member of Master Builders, you have access to a great range of car kit and installation options for most handsets. Don’t risk a fine, or worse an accident. Keep your licence and stay safe by installing a car kit for your mobile phone. Call the Master Builders Telecommunications helpdesk on 1300 88 13 72 for details.
MAKING A VOICE CALL ON A MOBILE PHONE WHILE DRIVING INCREASES THE RISK OF BEING INVOLVED IN A MOTOR VEHICLE ACCIDENT BY AS MUCH AS FOUR TIMES.
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Spotlight on
Fresh direction for Master Builders membership services Master Builders recently welcomed Sue-Ann Fresneda as the new Director – Membership Services & Business Development, in a bid to strengthen our key membership services and focus on business development. Sue-Ann joined Master Builders after 20 years in sales and advertising, bringing with her a wealth of knowledge and experience.
including Cairns, Townsville, the wider Brisbane area and the Gold Coast. As such, she brings with her a strong focus on regional development and value creation for members.
Originally from Toowoomba, Sue-Ann began her career at APN with the Toowoomba Chronicle as an Advertising Sales Executive, after completing studies in business and marketing. From there she moved to News Ltd (The Courier-Mail and The Sunday Mail), where she worked her way up from Advertising Sales Executive to Advertising Operations Manager and Sales Director.
“My focus is value creation for our members and partners by developing products and services that meet their evolving needs,” Sue-Ann said.
In her most recent position as Queensland’s General Manager – Operations for News Ltd, Sue-Ann was responsible for managing operations across Queensland locations,
“I’ve already had the pleasure of meeting some of our many members from across the state, while travelling with the recent Outlook & Opportunities Forum and at our Brisbane
Sue-Ann’s business development, strong commercial acumen, marketing expertise and product development skills complement the already strong leadership team at Master Builders. Smoko, and I’m looking forward to meeting and working with many more in the future.” Sue-Ann will lead the Membership, Business Services, Training, Display Villages, and Communications & Marketing teams, working closely with all other critical divisions of Master Builders.
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Superannuation Mikki Richardson – Senior Advisor Workplace Relations
Changes to super from 1 January 2014 need to switch to a fund that is authorised.
A new, simple and cost effective super product will replace existing default products from 1 January 2014. Effective from 1 January 2014, employers must make superannuation contributions for employees who have not nominated a preferred fund (through the completion of a super choice form), to a fund authorised to offer a MySuper product.
must meet are set out in legislation and will be enforced by the Australian Prudential Regulation Authority (APRA). These standardised features across all funds will allow for employers and members to more effectively compare products and funds.
What is MySuper? MySuper is a super product that will replace existing default products offering a simple set of features, irrespective of who the fund is. Its introduction is aimed to remove any unnecessary and complicated features that members may not necessarily use, and in doing so reduce the fees associated with such a product. The standards that a MySuper product
If an employee provides you with a super choice form, their chosen fund is not required to be MySuper authorised to accept employer contributions.
To do list
Confirm that your current default fund is authorised to offer a MySuper product on the APRA website
Is the default fund I am using an authorised fund?
If authorised, you can continue to make contributions to your existing default fund
For almost all employers it is anticipated that your existing default fund will offer a MySuper product.
If you find that your default fund is not authorised you will need to switch to a fund that is. If you do this, you will need to provide an updated choice of fund form to all employees that have not nominated a chosen fund within 28 days of the change.
A full list of funds authorised to offer a MySuper product can be found on the APRA website at www.apra.gov.au
For more information, contact Master Builders on (07) 3225 6407 or email workplacerelations@masterbuilders.asn.au
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Members
PJH is building lifestyles… one story at a time
A strong focus on customer service, team culture and company values has helped Paul Harms turn his Gold Coast-based business, PJH Constructions, into a thriving success. If you had asked Paul five years ago where he would like to be in this moment, he probably would have told you that he’d be running his own successful business. Fast-forward five years and he has achieved this... plus much more. Paul completed his carpentry apprenticeship in Dalby. He believes that something he learned very early on was what was promised to clients is what had to be delivered. “I think that kind of honesty and integrity made me realise what was important. If I wanted to do well at my apprenticeship and be a part of the business, I had to get on board very quickly,” Paul reflected. “I was trusted to do my job as long as I turned up with the right attitude, was willing to learn and pulled my own weight. It was a great learning experience and it helped me to form a large part of the way I run my business now.” After completing his apprenticeship and working in a partnership for a while, Paul quickly realised it wasn’t the ideal structure for him and decided to start PJH Constructions on the Gold Coast. In the beginning it was a one-man-show, but Paul’s ambition and goals were to grow a business that would make a positive impact on the industry.
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Members
Within 12–18 months the business was at a point where Paul could really start to focus on where he wanted to take the company in terms of size, image and culture. Today, PJH specialises in major home renovations, extensions and additions and employs around ten staff. “Our clients are mainly families or couples who want to add more space to their home and improve their lifestyle,” Paul explains. “In terms of types and size of jobs, when we say major renovations, these are typically anywhere from $50,000 up to jobs of half a million dollars or more. The jobs are usually a combination of new additions and extensions along with a major internal renovation to the existing home.”
I THINK THE BIGGEST CHALLENGE WAS CREATING A PLAN OF HOW I WAS GOING TO BUILD THE BUSINESS TO THE LEVELS THAT I KNEW I WANTED TO GET TO.
Starting a business was not an easy feat and Paul is the first to admit there were challenges along the way. “At the start the biggest concern was not being sure of what would unfold and how it would unfold. I knew what I wanted to achieve, but wasn’t really sure how I was going to make it happen,” Paul said. february/march 14
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Members “The strategy for PJH is very clear and every single team member knows where we are going and how we’re going to get there. This has also played a key part in helping us grow.” Paul engaged a business coach to help him formalise and clarify his ideas, bring in some new ideas and viewpoints, and to keep the team focused on where the business was going and how it would get there. Customer service is also a big part of what Paul and the team focus on, which led to the creation of the ‘PJH Customer Satisfaction Guarantee’ – a seven-point guarantee around specific deliverables and components of what is promised to customers. It’s this seven-point guarantee that made Paul stand out from the crowd at the 2013 Housing & Construction Awards, where he took home the Rising Star award at both a regional and state level. Paul defines this as one of his biggest career highlights to date, describing the ability to enter these awards as one of the many benefits of being a Master Builders member. “There were definitely some nerves because everything was so new and every single day the learning curve was steep and fast. After getting through that initial period, I think the biggest challenge was creating a plan of how I was going to build the business to the levels that I knew I wanted to get to. “By that point, I realised that there were many components outside of the actual building and construction side of the business. I needed to be more than a builder... I needed to brush up on my business owner and entrepreneurial skills and learn more about what that meant and what I needed to do and learn to be successful. “That mindset really helped me from that point on because it provided a constant reminder to what I needed to focus on. This, for me, is
certainly about providing a great end product, but also all of the other components that come with it, such as the marketing, sales, finance, administration, team building, leadership, systems and a whole range of items within those.” “Without great people, we simply wouldn’t have a business. Our team is amazing and we all work really hard on upholding our team culture and company values,” Paul explains. “Additionally, we spend a lot of time and energy on our ‘business assembly line’, which is marketing, sales, delivery, finance and admin. We keep refining the workflow from the first enquiry all the way through to a finished project. Within that workflow we have a wide range of processes, procedures, systems and tools that keep things running smoothly.
“Being a member of Master Builders allows me to keep up to date with what’s happening in the building industry in terms of other companies, legislation changes and guidelines. It also gives me the opportunity to meet and build relationships with other professionals, allowing us to support and help each other grow.” In terms of guidance for future rising stars, Paul’s best advice is to remain vigilant and not become complacent against the sometimes unfortunate reputation the building industry has. “There’s also the continuing need for builders to learn the trade of being a business owner. As an industry we can raise the bar by working on how we create more business owners who are builders –as opposed to builders who are indeed great builders, but lack the necessary business skills,” Paul recommends.
AS AN INDUSTRY WE CAN RAISE THE BAR BY WORKING ON HOW WE CREATE MORE BUSINESS OWNERS WHO ARE BUILDERS.
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Member benefits
Medibank Corporate health cover Master Builders has partnered with Medibank to bring you a great deal on health cover for you and your family. Here are some of the benefits you can look forward to when you join Medibank Corporate health: •
An ongoing 8.3% discount – that’s like getting one month of cover free each year*
•
Tailored packages for every stage of life
•
No hospital excess for kids on family memberships+
•
•
100% back on optical items at optical retailers, up to your annual limits# Medibank hospital cover includes access to a range of health support services, including a 24/7 health advice line
•
If you have a flybuys account, link your Medibank and flybuys accounts to start earning rewards. See medibank.com.au/ flybuys for details.
For more information call 131 680, ask in store, visit www.medibank.com.au/mbaqld or email your Medibank consultant at qldcorporate@medibank.com.au Remember to quote you are a member of MBA QLD. Note: Waiting periods apply including 12 months for pre-existing conditions.*Discount based on premiums of equivalent and eligible Medibank retail covers and applies for the life of your corporate cover. Over 12 months, the 8.3% discount
is worth approximately one month of equivalent retail cover. With Corporate hospital cover. Other out-of-pocket expenses may apply. With Corporate extras and package cover excluding For Everyday Starter package. This information is correct at time of issue, 08/01/2014. Medibank Private Limited ABN 47 080 890 259
CONCRETE SLEEPER RETAINING WALLS CONCRETE & STEEL RETAINING WALL PRODUCTS ENGINEER DESIGNED AND MANUFACTURED TO AUSTRALIAN STANDARD 4678-2002 RANGE OF COLOURS & DESIGNS TO SUIT ANY HOME AND LANDSCAPE GUARANTEED FOR 35 YEARS SUITABLE FOR USE IN RETAINING WALLS UP TO 3.0M HIGH
MEGA BLOCKS & SOUND BARRIER PANELS ALSO AVAILABLE FOR COMMERCIAL USE 1422 New Cleveland Road, Chandler QLD 4155 07 3245 1220 | aussie.concrete@bigpond.com
www.aussieconcrete.com.au february/march 14
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Insurance Ken Bowen – General Manager Insurance
Builders professional indemnity insurance The importance of ensuring you buy the right policy. Professional indemnity insurance has become a fairly common contractual obligation for builders and many other construction industry participants, especially when providing services that involve the application of professional or specialist expertise. These services can be wide and varied and may include activities such as: •
Project or construction management
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Design and construct
•
Building design work
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Design interpretation and drafting
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Building consultancy
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Design modifications, undertaken by builders at request of owners
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Management services.
However, it should be noted that professional indemnity insurance is neither designed nor intended as a policy to pay for the rectification costs of general building defects. Due to its complex nature and to provide for members’ ongoing needs for this form of policy, Master Builders Insurance retains respected and well known professional indemnity advisor, Australian Indemnity, as an authorised representative. Through these arrangements with Australian Indemnity, members can readily obtain dependable advice and
assistance in arranging the professional indemnity policy that is right for their own particular requirements. Australian Indemnity has access to major local and international professional indemnity insurance markets and provides the necessary expertise to assist members in sourcing quality coverage at extremely competitive pricing.
Some aspects to consider when buying professional indemnity insurance Whenever you buy a professional indemnity policy, there are some very important aspects that must be remembered. 1. Professional indemnity policies require that claims made against you or incidents that might cause a claim under the policy, are reported to the insurer during the period the policy is actually in force. This means that if your policy expires without you notifying the insurer of any such circumstances that may have occurred, a subsequent claim or legal action against you will not be covered. This is why it’s imperative that policies be either maintained continuously as an annual cover, or if arranged on a project specific basis, an appropriate additional period of coverage beyond the construction phase is included.
2. Professional activities you wish to insure must be adequately noted in your policy. Always remember that your policy will only respond to the business activities stated in it. The fact that you may hold professional indemnity insurance does not automatically mean that you are covered for any business activity in which you are, have been, or may become engaged. In general terms, insurance policies can be very different in that some exclude risks that others insure. This is particularly the case with professional indemnity policies. It is therefore very easy to buy a policy that fails to provide the financial protection required. Some insurance policies can exclude risks that others insure, so without the right advice, it’s easy to buy a policy that fails to provide the financial protection you need. The Australian Indemnity solution includes detailed advice on the differences between the many policies available. Some of the facilities already in place for Master Builders members through Australian Indemnity include:
Design and construct professional indemnity When taking on design and construct contracts the builder has professional indemnity risk exposure arising from the performance of professionals engaged in the project, along with the risks arising from responsibility to coordinate the professional output. Whilst as a builder you should ensure that each professional you engage on the project holds
Start using eDocs today! Master Builders eDocs – electronic documents and online core services – system is now available! Access to the new eDocs system is exclusive to Master Builders members and makes creating contracts easier, faster and more intuitive than ever before. Activate your account and start using eDocs today! Visit www.masterbuilders.asn.au/edocs.
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Insurance
current professional indemnity insurance, you can still be at risk from the consequences of their professional negligence. In the event of a claim, and assuming the circumstance is covered by their policy, consultants’ insurers will defend them vigorously and often at the expense of the builder and other professionals. In addition, the builder may have been responsible for consultant selection and most likely will be held responsible for the coordination of the professional contributions. Design and construct professional indemnity policies available through Australian Indemnity are structured to cover these risks and they can be purchased on an annual or project-specific basis. A major benefit, which we suggest be included in design and construct policies, is the agreement by the insurer to pay for rectification of work that would eventually result in a claim under the policy. This feature mitigates losses arising from professional mistakes, by reducing delay and keeping any legal costs to a minimum. Usually the project can proceed, with claim funds available from the insurer and eventual responsibility for the rectification costs being established as a separate issue.
Building consultants’ professional indemnity This policy is designed primarily for basic pre-purchase inspection work and is available for both residential and commercial property reports. Coverage is compliant with Queensland Building and Construction
Commission (QBCC) licensing requirements, with premiums and policy excesses at very competitive levels. If your practice is involved in any additional activities, such as quality assurance, dispute resolution, workplace health and safety audits, pest reports, conciliation, arbitration, mediation, expert witness, management services, etc., – remember the golden rule of disclosing the full extent of such activities to the insurer, to ensure that appropriate coverage is included in your policy. In summary, do not treat your professional indemnity insurance as just another insurance policy. It is an extremely complex contract, designed for professionals. It demands the
attention of a professional insurance advisor who will act in your interests. For more information, call Master Builders Insurance on 1300 13 13 26 and we will arrange for Paul Ellison, Principal of Australian Indemnity, to contact you for a detailed evaluation of your professional indemnity insurance requirements. Note: Details of insurance coverage in this article are a summary only of policy coverage. We are pleased to provide full copies of policy documentation on request should you wish to review the complete terms of cover as these will apply in the event of any claim. Information contained herein is of a general nature and has not taken into account the particular insurance needs of any individual business or person.
PROFESSIONAL INDEMNITY INSURANCE IS NEITHER DESIGNED NOR INTENDED AS A POLICY TO PAY FOR THE RECTIFICATION COSTS OF GENERAL BUILDING DEFECTS.
Spread the cost of your annual insurance premium with monthly payments.
Free up cash and retain working capital Quick and easy set up, over the phone Insurance policy used as security, no additional guarantees needed Competitive fixed interest rate protects against rate fluctuations Interest charges usually tax deductible
*Credit facilities provided by Premium Funding Pty Ltd ABN 34 057 360 171
Call Master Builders on 1300 13 13 26
QMBA-17781 09-13
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Health & wellbeing
Providing a risk score for bowel cancer A QIMR Berghofer Medical Research Institute scientist has launched an Australian-first study designed to prioritise highrisk patients on colonoscopy waiting lists. Associate Professor Graham Radford-Smith, who is also a gastroenterologist at Royal Brisbane and Women’s Hospital (RBWH), said demand for colonoscopies was outstripping supply and leading to lengthy waiting lists. “It’s great that a growing awareness of bowel cancer is convincing more people to take up the option of screening, particularly when they’re over 50 and the risk increases,” Professor Radford-Smith said. “But one major concern is the lack of correlation between symptoms and the presence or absence of polyps or bowel cancer.
abnormality in the bowel, and determine how urgently a colonoscopy is required. This will be driven by a combination of good clinical and scientific research,” Professor Radford-Smith said. He will recruit 1,000 GP-referred patients over two years, in conjunction with RBWH and Prince Charles Hospital. Watch Associate Professor Graham RadfordSmith explain this research further at www.youtube.com/watch?v=RvkZmacZa8Q
About bowel cancer: 14,000 Australians are diagnosed with bowel cancer each year and 4,000 of them will die from the disease, making bowel cancer the second most common internal cancer.
“This is a gap in clinical practice. Patients with serious bowel disorders may be in the colonoscopy queue alongside individuals with either a benign disorder or no abnormality because the process of colonoscopy prioritisation – also known as “triaging” – is based upon symptoms and not objective laboratory tests,” Professor Radford-Smith said. Over 500,000 colonoscopies are performed in Australia every year. Most of those patients will have gone to their GP with worrying symptoms including stomach pain, or rectal bleeding. However, only a limited number undergo further relevant tests before having their colonoscopy. “By collecting detailed health information, and conducting blood and faecal tests, we hope to develop a risk score to predict a person’s risk of
In a prickly situation with a client? Master Builders can help you manage the dispute. Call us on 1300 30 50 10.
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MISSION: POSSIBLE Reduce your membership fee to
$
0
Simply tell us about a mate who might be interested in becoming a Master Builders member and we’ll give them a call. If they join, we’ll give you $250 off your next membership renewal*. Call Master Builders on 1300 30 50 10 or email membership@masterbuilders.asn.au and refer a mate today!
* Terms & condiƟons apply. Go to www.masterbuilders.asn.au for full terms & condiƟons.
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People & events
Brisbane Christmas Smoko Members and their partners gathered at Master Builders head office in Brisbane on Thursday, 12 December to celebrate Christmas with a few drinks and a BBQ put on by Brisbane staff members. A special thanks to sponsors, Trade Tools and BUSSQ, for their involvement and support at the event.
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People & events
President’s Christmas Drinks Guests gathered at Master Builders head office in Brisbane on 18 November for the annual President’s Christmas Drinks. The AttorneyGeneral and Minister for Justice, The Hon. Jarrod Bleijie, spoke about the industry on behalf of the government.
Apple iPad winners All members who pay their membership renewal by the due date go in the draw to win an Apple iPad Mini each month. Congratulations to all of our latest winners.
Lex Schuster from
John Tonc from MagneƟc Island
Anaconda ConcreƟ
ng in Brisbane
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People & events
Outlook & Opportunities Forum The Outlook & Opportunities Forum recently travelled the state, talking about the outlook for the building and construction industry over the next few years. (Read more about the event on page 62)
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People & events
Survey of Industry Conditions winner Congratulations to construction manager, Steven Winkelman, from Total Lifestyle Builders in Brisbane, who took home a bottle of Penfolds Grange just for filling out our quarterly Survey of Industry Conditions.
Regional Christmas parties Members across Queensland got into the festive spirit at our Christmas parties late last year, taking the opportunity to mingle with other members and enjoy a great atmosphere.
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Events
Explore business opportunities in Asia and the Pacific
Industry’s year ahead
Master Builders Australia is organising a mission to the 41st IFAWPCA Convention in Jakarta, Indonesia on 2–3 March 2014. The International Federation of Asian and Western Pacific Contractors Associations (IFAWPCA) Convention is your opportunity to meet with leading building and construction organisations and firms from the Asian and Western Pacific countries and identify business opportunities. IFAWPCA’s members represent the key construction and building contractors in the Asian and Western Pacific region. IFAWPCA conventions are held each eighteen months and bring together around 800 delegates from leading construction organisations and contractors from 16 countries. Australia is a founding member of IFAWPCA whose members include India, Taiwan, Hong Kong, Indonesia, Japan, Korea, Malaysia, Nepal, New Zealand, Philippines, Singapore, Sri Lanka, Thailand, Bangladesh and Maldives. Missions to IFAWPCA Conventions are led by Master Builders National President and CEO. This senior Master Builders representation provides a strong delegation presence at the convention. Registered participants will be assisted to meet delegates to discuss, buy/sell products or services, identify distributors, agents, joint venture partners and investment in Indonesia and IFAWPCA countries. Mission members will be able to view the latest innovations and styles in building and construction and interact with senior executives from participating countries. The Convention will be a meeting ground for closer cooperation, exchange of ideas, sharing of experiences of building and construction technology among the member nations. For further information and to receive an information pack, contact Keith Stubbs, National Manager, International Division on (03) 9411 4555 or email kstubbs@mbav.com.au
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Builders and trade contractors gained valuable insight into the building industry’s future when the Outlook & Opportunities Forum took to the road in November last year. The 2013 forum (affectionately known in the industry as Roadshow) was an ideal opportunity for members to hear what’s in store for their region over the coming years and find out what Master Builders is doing to support industry growth and activity. The 2013 Forum visited ten regional centres across Queensland and saw a range of speakers, including local builders, developers, and mayors and other senior local government officials, discuss important local issues, as well as key opportunities and projects. Master Builders Deputy Executive Director, Paul Bidwell, said the forum was a great success, attracting more attendees than last year. “The increase in numbers clearly demonstrates the industry’s desire to understand what’s happening in the future and why,” Mr Bidwell said. “The panel discussed local issues, future projects, planning approval processes, economic conditions, and problems with infrastructure charges, as well as providing advice on how to tap into the key projects and opportunities happening in those areas. “With the industry showing signs of recovery after an extended period of lacklustre demand, our panel of experts were on hand to field questions and talk about getting your business involved and ready for the next few years.” A range of exhibitors at each event also gave attendees access to information about the latest products available in the building industry. Some great prizes were also on offer, with one lucky person at each event winning a $500 voucher to spend at a local hardware store. All attendees also went in the draw to win a Master Builders tradesman’s trailer, which was valued at over $4,770. Rick Chelman Builder Pty Ltd from the Mackay region was lucky enough to win the major prize and recently picked up his new trailer from Mackay & Whitsunday Regional Manager, Malcolm Hull. We look forward to seeing you all when Roadshow travels the state again later this year! Roadshow was proudly supported by: APA Group, BlueScope Steel, Bondor, BUSSQ Building Super, Cleantech, Construction Skills Queensland, Dulux Acratex, Garland Waddington, J&B Pest Control, Kingspan, McKays Solicitors, QAMS, QIS, Reece, Ritek Building Solutions, Sunshine Injury Management, SV Partners, TEC-NQ, Telstra Country Wide, Festool & Protool, Viewpoint and Workplace Health and Safety Queensland.
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Training & licensing
Master Builders offers new training opportunities in 2014
MASTER BUILDERS OFFICE LOCATIONS BRISBANE 417 Wickham Terrace Brisbane, QLD 4000 Ph: (07) 3225 6444 Fax: (07) 3225 6545 ask@masterbuilders.asn.au www.masterbuilders.asn.au GOLD COAST John Duncalfe Regional Manager Master Builders House 18 Central Park Ave Ashmore, QLD 4214 Ph: (07) 5582 7100 Fax (07) 5597 7044 DOWNS & WESTERN Tony Ryder Regional Manager 166 Hume Street Toowoomba, QLD 4350 Ph: (07) 4659 4200 Fax: (07) 4639 5144 SUNSHINE COAST Michael Hopkins Regional Manager Level 1, 91 King Street PO Box 1458 Buderim, QLD 4556 Ph: (07) 5456 9800 Fax: (07) 5453 4670
This year is set to be an exciting one for Master Builders, with the announcement of two new training courses on offer. These programs will be led by industry professionals and have been specifically designed to address the current wants and needs of the building and construction industry. The first program to debut this year will be Master Builders Performance Management & Development Workshop. We understand that it can be very difficult for supervisors to effectively manage staff performance and development, especially considering there is no one-size-fits-all approach. This workshop will provide students with the basics of how to plan, conduct and evaluate performance reviews in order to better manage staff performance on a day-to-day basis. Our experienced and professional trainers will lead students through a number of topics including general performance management, interpreting company policy and industrial legislation, helping people improve their own skills for managing performance, and developing action plans. This one-day workshop will run across all Queensland regions, so make sure you contact your local office to find out course dates. This year will also see the introduction of Master Builders Manage Personal Work Priorities and Professional Development Program. This course has been designed by the Master Builders Housing Sector Committee to support the skill and professional development needs of builders, leading hands, site managers, supervisors, estimators and other relevant personnel in the residential sector. Throughout these four, half-day workshops, students will cover a myriad of topics, including managing their own work performance, setting and meeting work priorities, and developing and maintaining professional competency. With the opportunity to interact face-to-face with our experienced trainers and fellow classmates, participants will leave with the skills and knowledge to present confidently, prepare for personal responsibilities in the workplace, and provide opportunities for personal professional development. This program will be offered by all Master Builders offices throughout Queensland, and we encourage you to contact your local office to register your interest. For more information on both of these programs, as well as the many other training courses Master Builders has to offer, visit www.masterbuilders.asn.au/training-and-licensing or call 1300 13 60 02.
BURNETT WIDE BAY Michael Hopkins Regional Manager 162 Boat Harbour Drive Hervey Bay, QLD 4655 Ph: (07) 4303 2400 Fax: (07) 4124 7235 CENTRAL QUEENSLAND Dennis Bryant Regional Manager 35 Derby Street PO Box 631 Rockhampton, QLD 4700 Ph: (07) 4923 1900 Fax: (07) 4921 3235 MACKAY & WHITSUNDAY Malcolm Hull Regional Manager Suite 2, 40 Evans Avenue PO Box 3188 North Mackay, QLD 4740 Ph: (07) 4969 4500 Fax: (07) 4951 3418 NORTH QUEENSLAND Melissa Coulter Regional Manager Master Builders House Unit 1(B), 316 Sturt Street Townsville, QLD 4810 Ph: (07) 4417 1800 Fax: (07) 4771 5777 FAR NORTH QUEENSLAND Ron Bannah Regional Manager 310–314 Gatton Street Manunda, QLD 4870 PO Box 806 Earlville, QLD 4870 Ph: (07) 4042 8800 Fax: (07) 4041 7663
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What’s new InsulLiving® Leads The Way ,Q $XVWUDOLD·V (QHUJ\ (IÀFLHQW 5HVLGHQWLDO %XLOGLQJV ´7KH KRXVH XVHG SHU FHQW OHVV HOHFWULFLW\ WKDQ WKH DYHUDJH 6RXWK (DVW 4XHHQVODQG KRPH ZKLFK HTXDWHG WR D KHDWLQJ DQG FRROLQJ ELOO IRU WKH \HDU RI MXVW RU FHQWV D GD\ µ 'U 0LOOHU VDLG ´,I RFFXSDQWV FKRRVH WR SURYLGH DGGLWLRQDO FRPIRUW WKURXJK WKH XVH RI FRROLQJ RU KHDWLQJ DSSOLDQFHV WKH HQHUJ\ UHTXLUHG WR SURYLGH WKLV DGGLWLRQDO FRPIRUW LV YHU\ PLQLPDO DERXW RQH WKLUG RI WKH HQHUJ\ RI D VWDU KRXVHµ 'U 0LOOHU VDLG WKH ,QVXO/LYLQJ® FRQVWUXFWLRQ ´SURYLGHG D PRUH FRQVLVWHQW DQG UHOLDEOH LQVXODWLRQ TXDOLW\ IRU WKH EXLOGLQJ HQYHORSH FRPSDUHG ZLWK RWKHU FRQVWUXFWLRQ PHWKRGV µ
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For more information contact: www.insulliving.com.au or Bondor Queensland on 07 3323 8500
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What’s new
One business that will do the lot! Baylec Electrical is South East Queenslands electrical contractor of choice for Project and Multi Residential builders. Our Company Mantra ensures we show up on time, keep our promises, be extremely polite and give a little more than expected every time; we guarantee it! Multi-residential builders, developers and residents of Brisbane and Southeast Queensland choose Baylec Electrical because of our: > Proven track record of on-time, on-budget, defect-free projects. > Wide range of in-house end-to-end services, Electrical, Air Conditioning, Security, Intercom, Ducted Vacuum & Solar.
> Full Design Consult facilities. > Flexible approach and customer-first attitude > Best quality products and competitive price > Strong award winning environmental focus and accreditations > Over 13 years and 2000 projects completed to date. For a company that is BIG ENOUGH TO CATER FOR YOUR NEEDS BUT SMALL ENOUGH TO CARE you can trust the award winning, family owned BAYLEC Electrical to deliver.
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Call Baylec Electrical on 1300 BAYLEC (1300 229 532) today to book your next project or residential job! MB Feb-Mar 14 magazine.indd 65
4/02/2014 11:37:11 AM
What’s on in March Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday 1
2
8
9
15
16
Asbestos Worker Program (Burnett Wide Bay) 3
4
Testing & Tagging (Downs & Western)
Cairns Industry Update
Atherton Industry Update
Maryborough Industry Update
5
11
12
Lawyers in the House (Gold Coast)
General Safety Induction (Brisbane)
Business Management (Far North Qld)
Business Management (Far North Qld)
Innisfail Industry Update
Industry Update
7 Asbestos Worker Program (Mackay & Whitsunday)
Asbestos Worker Residential Contracts Workshop Program (Mackay & (Far North Qld) Tully/Mission Beach Whitsunday)
Gold Coast Industry Update 10
6
13 Testing & Tagging (Brisbane) Residential Building Inspectors (Far North Qld)
14 Residential Building Inspectors (Far North Qld)
Business Management (Gold Coast)
Business Management (Gold Coast)
Business Management (Brisbane)
Business Management (Brisbane)
Testing & Tagging (Mackay & Whitsunday)
Testing & Tagging (North Qld) Tully/Mission Beach Golf Day 17
18 Business Management (Central Qld)
Business Management (Central Qld)
Sunshine Coast Construction Sector Forum
19
20
Asbestos Worker Program (North Qld)
Asbestos Worker Program (North Qld)
2014 IBC Conference
21
Testing & Tagging (Central Qld)
Asbestos Worker Program (Brisbane)
Asbestos Worker Program (Brisbane)
Central Qld Business Partners Dinner
Business Management (North Qld)
22
23
29
30
Business Management (North Qld) Business Management (Sunshine Coast)
Business Management (Sunshine Coast) 24
25 Lawyers in the House (Gold Coast)
26 Testing & Tagging (Far North Qld)
27
28
Asbestos Worker Program (Downs & Western)
Asbestos Worker Program (Downs & Western)
Asbestos Worker Program (Central Qld)
Asbestos Worker Program (Central Qld)
31 Asbestos Worker Program (Mackay & Whitsunday) To book your place at a Master Builders event or training course, go to www.masterbuilders.asn.au or call 1300 30 50 10. Note: Dates are subject to change.
mb
[ 66 ] february/march 14
MB Feb-Mar 14 magazine.indd 66
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What’s new
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MB Feb-Mar 14 magazine.indd 67
4/02/2014 11:37:16 AM
MB Feb-Mar 14 magazine.indd 68
4/02/2014 11:37:17 AM