2016 Master Builders Western Australia Magazine July - August

PP 100019761 $9.90

VOLUME 13 | NUMBER 3 | JULY – AUGUST 2016

11

Wanneroo a winner

36

Health: facts on ice

44

Master Builders’ president Rob Spadaccini

48

High risk training worries

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2 CONTENTS J U LY / A U G U S T 2 0 1 6

OUR COVER A colourful Carnevale theme complemented regional contractors’ successes at the 2016 Master Builders Bankwest Kimberley Pilbara Building Excellence Awards.

Full details are on pages 14 to 18

IN THIS ISSUE...

FOREWORDS

UPDATES

FEATURES

President’s File .......................................................4

Building Business .................................................19

Building Software .................................................54

Director’s File ..........................................................6

Housing ................................................................26 Industrial Relations ...............................................27

REPORTS

Insurance ..............................................................31

General News .........................................................8

Legal .....................................................................32

Branches ..............................................................12

Health ...................................................................35 Membership .........................................................38

AWARDS

Personal Pars .......................................................42

Kimberley Pilbara Awards.....................................14

Safety ...................................................................45

Excellence in Construction Awards ......................18

Technical ..............................................................46 Training .................................................................48 Utilities ..................................................................50

PUBLISHED BY

Crowther Blayne & Associates Pty Ltd Phone: 1800 222 757 Fax: 1800 063 151 Email: publications@crowtherblayne.com.au Sales: Rose Delosreyes, Scott Sharples, Daniel Rutland, Trish Riley, Vivianne Reiss Email: sales@crowtherblayne.com.au Graphic Design Team: Andrew Crabb, Danny McGirr and Michelle Triana Editor: Samantha Regan Advertising Production Controller: Yvonne Okseniuk Printed by Newstyle Printing

MBAWA BOARD OF MANAGEMENT: President: Rob Spadaccini Senior Vice President: David Crothers Vice President: Jack Pleiter Treasurer: Grant Burgess Immediate Past President: John Ripp Board Members: Philip Kemp, Jason Kunkler, Andy Peppercorn, Dan Perkins, Robert Shaw Michael Vermey, Michael Van Dongen

Master Builder is the official publication of The Master Builders Association of Western Australia. It is produced five times per year and published by Crowther-Blayne & Associates Pty Ltd. Master Builders Association of Western Australia was established in1898 and is the state’s oldest building industry organisation. The MBAWA is part of the Australia-wide Master Builder movement. Master Builder is produced to keep members informed of matters affecting them. Opinions and/ or statements in any editorial and/or advertisements are not necessarily those of the publisher and/or the MBAWA. The publisher reserves the right to reject any material deemed unsuitable for publication. Other than for the purposes of and subject to the conditions prescribed under the copyright Act 1968, no part of Master Builder may in any form or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced, stored in a retrieval system or transmitted without prior written permission from the MBAWA or Crowther-Blayne & Associates Pty Ltd.

SENIOR STAFF: Director: Michael McLean Contracts & Administration Manager: Charles Anderson Construction Director: Kim Richardson Membership Services Manager: Veronica Mill Housing Director: Jason Robertson Business Director: Graeme Dix Marketing Manager: Kelly Dewar-Matusik Events Manager: Monique Milne Technical Advisor: Romina De Santis Training Director: Neil Du Rand Safety Manager: Michael Fitzgerald Waste Reduction Consultant: Michael Norriss

HEAD OFFICE: 35-37 Havelock Street, West Perth WA 6005 Post: PO Box 167, West Perth WA 6872 Phone: (08) 9476 9800 (Country) 1300 550 262 Fax: (08) 9476 9801 Email: mba@mbawa.com Website: www.mbawa.com REGIONAL BRANCHES: Albany-Great Southern: Linda Gibbs Ph 9841 6232 Bunbury-South West: Geoff Bosustow Ph 9721 6547 Geraldton-North West: Dianne Gilleland Ph 9921 5061 Esperance: Doug Backhouse Ph 0437 184 366 Kalgoorlie: Sarah Hinton Ph 0412 487 970 MEMBERSHIP INQUIRIES: Veronica Mill Ph (08) 9476 9800

SUBSCRIPTION ENQUIRIES: Master Builder is available for subscription at a cost of $55/year. Contact Membership Services Manager Veronica Mill via email at veronica@mbawa.com for further information.

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4 FOREWORDS President’s file J U LY / A U G U S T 2 0 1 6

First impressions

Robert Spadaccini For several months now Master Builders’ Board and senior staff have been busily engaged in developing a three-year strategic plan for the Association (but also looking further to a five-year horizon). It has been a very detailed process and focussed exercise.

The theory behind any strategic plan is to formulate a high level direction for the organisation. To assist us with this assignment we engaged Colin Bell from Bell Consulting who worked closely with our business director, Graeme Dix, and all of our senior staff and Board members.

Because of Master Builders’ history and the fact that we weren’t experiencing any major problems, we proceeded on the basis of evolutionary rather than revolutionary change.

We also agreed to work within our current structure and staff, in the context of a SWOT (strengths, weaknesses, opportunities and threats) analysis.

The purpose of our Strategic Plan is to: • Provide a clear vision, mission and positioning statement in the market place.

• Provide clear strategic objectives, strategies, pathways and success indicators (KPIs).

• Understand what needs to change to achieve the strategic objectives.

• Understand the possible external and internal influences which might be encountered on the journey.

• Provide a vehicle to promote teamwork and collaboration at all levels.

• Provide the rationale for business operations and the development of an annual business improvement plan.

• Provide the executive director with a ‘licence’ to operate within agreed authority levels.

The framework which underpins Master Builders’ strategic plan focuses on five core elements: • To strengthen and sustain our industry advocacy and representation.

• To grow and retain our membership.

• To rejuvenate our products and services.

• To realign and evolve our organisational capacity and sustainability.

• To strengthen our corporate governance.

We believe we can achieve these objectives through different initiatives which will complement this framework. As part of the whole process, our membership will be actively engaged in guiding the Association to help drive the outcomes of the strategic plan.

We also will look at strengthening our industry policies, collaborating more with Master Builders Associations in other states and territories, including Master Builders Australia.

Acknowledging the Support of our 2016 Partners: Insurance Partner

Although Master Builders is a not-for-profit organisation, we have evolved significantly since our formation in 1898. To be a successful business we will need to continue to evolve to take advantage of emerging opportunities.

The next two years will be a tough business environment for all of us. Like our members, Master Builders will need to adapt to remain relevant and prosperous.

Our 12-person Board is confident we can do so. Our strategic plan no doubt will keep us all on track as we strive to achieve our vision and mission.

We will contact all our members personally over the next three months to seek feedback on the strategic plan which will be formally launched at the AGM in November.

Robert Spadaccini President

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6 FOREWORDS Director’s file J U LY / A U G U S T 2 0 1 6

Fighting for a cause Three campaign message levels were used: • High level – the contribution of the industry to the economy and community and therefore why Master Builders was intervening in the election campaign.

• Portfolio specific – contextualising and communicating Master Builders’ key policy objectives.

• Policy priorities – the measures Master Builders was asking the next Australian Government to implement to achieve our policy objectives

Michael McLean By the time this magazine reaches members, we should know whether we have a Turnbull or Shorten Government. Regardless, I’m sure most members will be pleased that the electioneering and media commentary are at an end.

Master Builders is apolitical but we do regularly submit our ‘wish list’ to the major parties and take a keen interest in their policies, especially those having an impact on the building industry.

There were two major policy differences between the Coalition and Labor which prompted us to pursue a public relations campaign in the lead up to 2 July; the Coalition’s support for the Australian Building and Construction Commission and Labor’s opposition and the Coalition’s support for retention of negative gearing compared to Labor’s intention to retain it for new housing only.

Master Builders’ campaign was developed under the Strong Building, Strong Economy banner comprising six themes (explained in our previous magazine). Our Board did not take lightly the decision to get involved in such a campaign during a fiercely contested federal election. We committed some reserve funds and asked members to contribute a voluntary levy to help fund the advertising campaign.

ABCC Campaign The aim of our ABCC campaign was to convince West Australians that without the ABCC they will pay more for public infrastructure and have fewer jobs available, including through less viable major construction projects.

The strategy highlighted to the public the financial and employment consequences from out of control, unlawful union actions in our industry. Key campaign messages included: • The CFMEU is out of control and must be held accountable by the ABCC for deliberate, ongoing unlawful conduct.

• Every dollar rorted by out of control unions is a dollar less for more key jobs such as for nurses, police and teachers.

• Every dollar added to construction costs by out of control unions is another reason why the next round of resource projects will be built overseas, not in WA, costing local jobs.

• Every time out of control union officials strut onto sites, their abusive behaviour leaves emotional scars on the people they abuse, threaten and intimidate and on families dealing with the fall-out.

• The building unions’ unlawful behaviour has driven up the cost of building schools, hospitals and childcare centres by 20-30 per cent.

Acknowledging the Support of our 2016 Partners: Insurance Partner

• No other Australian industry is subjected to this ongoing, ingrained behaviour. Why should construction workers be condemned to behaviour that would not be, and is not, tolerated in any other workplace?

Negative Gearing Campaign Master Builders believes retaining negative gearing will maximise home ownership.

Restricting negative gearing to new home construction will not increase supply of new housing. Abolishing negative gearing will reduce the value of existing homes and reduce rental accommodation, thereby increasing rents.

The impact on small businesses not being able to claim legitimate expenses on capital equipment through negative gearing also will cause hardship and disincentives to invest.

Fighting for a Cause The ABCC and negative gearing are worth fighting for. If our Association is fair dinkum about any policy we need to publicise our position, even at the risk of offending a major political party.

The stakes are high in seeking to win government.

Master Builders is an important stakeholder whose industry contributes more than 10 per cent to the State’s wealth and employs about 150,000 workers, second highest of any industry.

Our opinion matters and needs to be heard but newsprint, radio, television and social media exposure costs.

Our public relations campaign was governed largely by contributions from members. Hopefully, the outcome of the Double Dissolution election will have resulted in a return on our investment.

Regardless, we had a go and pursued principles we believed in. After all, isn’t that what industry associations stand for?

Michael McLean Director

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8 REPORTS general news J U LY / A U G U S T 2 0 1 6

Tight finish to tennis heroics The competition was so tight that two teams – Tony (the Sledger) Tarzia (Coastal Tiling) and his agile partner Carrol Rabbitt and Ray Kershaw Snr (Mondo Exclusive Homes) and Joe (the Italian Stallion) Gangemi – tied on 31 games after five gruelling matches. These teams were competitive throughout the afternoon with Carrol impressive on debut. A highlight which did not go unnoticed by the fans was Joe acing tournament director McLean on his favoured forehand side. If this concealed weapon could be unleashed more often, Joe’s ranking would improve considerably.

Heroes of the Master Builders Butler Settineri tennis.

Well dear readers, Master Builders’ almost overwhelmed tennis correspondent, Harve Vollee here again. What with all the late nights swooning over events at Roland Garros and the unbearable anticipation of the strawberries and cream and whatever else is to come at glorious Wimbledon, I’ve barely had time to recall the opening of yet another season of Master Builders’ corporate tennis back in April.

To be honest, there aren’t any Djokovices or Muguruzas here and the Pimms might possibly be playing tricks with my memory, so once again I have to resort to the meanderings of my ghost writer to bring you this dispatch. As ever, I suspect the Machiavellian tournament director (and the dead hand in handicapping) has contrived to have input in the writing so this report comes with my disclaimer that any libel is the work of others.

So, getting straight into it with a punchy, scene-setting first par…

The Master Builders Butler Settineri corporate tennis season kicked off in April at Kings Park. It was a glorious day and ideal for tennis.

Fourteen would-be tennis stars attended for this prestigious doubles event with three scratchings on the day. Once again players were paired according to the steward’s ranking and confidential handicapping system which has proven successful (at least for some) over several years.

(Stick with us, dear readers, this is tennis, not the sport of kings we’re talking about. HV.) Bringing up the rear in a very competitive field this year were Tom Jacobs (Jackson McDonald) and Sara Solomone (Finesse Consulting) with a combined score of 30 games. Sara obviously was disappointed with her performance after playing some amazing backhand winners earlier in the afternoon. Tom was as steady as ever with 17 games under his belt and will look for a better handicap next time round.

Grant Rodoreda (Jackson McDonald) and James Moore (Cbus) finished fourth with a score of 32 games. Recently back from a Singapore event, which included getting engaged and turning 30, Grant was moving beautifully around the court as a veteran. James showed potential but at times found the tennis court hard to adjust to after success on the masters’ football field.

In third place was the team of Ian Tubbs (Primestock Securities) and last year’s defending champion, Robert Shaw (Daly & Shaw). Debutant Ian soon proved his shoulder injury had healed sufficiently to play winners even though match fitness at this level was lacking. Master Builders’ past president Shaw was as acrobatic on the court as ever but with a low percentage of first serves, lacked the success others anticipated. With a new prescription of Isagenix anything is possible with this wily veteran.

Another debutant in Craig Butler (Vukelic Property Group) teamed with Master Builders’ McLean to finish second with 34 games. Not having been on the tennis circuit for years, Craig displayed huge potential and grit when the going got tough – like a true property manager. With the right tennis shoes, Craig will be a welcome addition to the Masters. Director McLean didn’t have things all his own way due to some of his partners playing below par and his opponents keen to avenge previous losses.

Outright winners with 35 games were Nick (the Chipper) Vernon from MBA Insurance Services and Ray Kershaw Jnr (Mondo Exclusive Homes). Nick was his irresistible best with steady tennis and annoying short game but relied heavily on his partner who also recorded the highest individual score of 20 games throughout the tournament. This is the first time a debutant has been on the winners’ podium for some years. Congratulations to Nick and Ray. (The report concludes that with little separating first from seventh – only five games – the handicapper is likely to be re-engaged for the next Master Builders’ competition. “Could anyone winkle him out of the position?” I say.

More deserving of thanks, however, Joe Gangemi and the team at Butler Settineri for sponsoring the tennis afternoon. Anyone game to test the handicapper’s mettle is welcome to contact Jayne on 9476 9808 or jayne@mbawa.com to be included on the tennis data base. The next tournament is in November. HV)

Employment Minister meets Master Builders Employment Minister Michaelia Cash met Master Builder members in the lead up to the Federal Election at a boardroom lunch hosted by the Association’s lawyers Jackson McDonald.

The focus of the meeting was on the Federal Government’s response to the Heydon Royal Commission and strategies to re-establish an Australian Building and Construction Commission.

Senator Cash is pictured at the boardroom lunch with Jackson McDonald partner Basil Georgiou (left) and Master Builders Australia national president Dan Perkins.

advertorial 9 J U LY / A U G U S T 2 0 1 6

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The Training Fund has a range of incentives for eligible employers of apprentices in construction trades, with up to $19,000 in cash now available to help reduce the costs of adding a new apprentice to your business.

The minimum standard grant available to an eligible employer is $3,000 (for a 12 month traineeship), rising to a maximum of $10,000 for a 48 month apprenticeship in core construction trade areas.

In addition to the standard grants, the Training Fund can provide a bonus of up to $2,000 to an employer of an apprentice that has successfully completed a recognised Certificate II VET-in Schools or pre-apprenticeship qualification. The Training Fund is also providing an extra bonus of up to $2,000 to eligible employers for the employment of women in non-traditional trades.

Additional supplements for employment of indigenous and regional trainees/ apprentices bring the maximum grant available to a total of $19,000.

The grants are available to employers of trainees/apprentices registered with the Department of Training & Workforce Development on or

after 1 July 2015. Direct indenture employers receive the grant in three equal instalments. The first is paid after probation and six months of continuous employment; the second at the half-way point of the indenture and the final payment is made after successful completion of the qualification.

MBA members will also receive the benefits of the grant from the Training Fund if hosting an apprentice through a group training organisation (GTO). The GTO claims the grant on your behalf and uses this funding to reduce the cost of employing and training the apprentice.

This will result in a reduction in your net costs of hiring the apprentice through the GTO. Look for the note on the GTO’s invoice that shows your apprentice is being supported by the Construction Training Fund.

Visit bcitf.org or call 9244 0100 for more information about the Construction Training Fund’s apprenticeship grants and other support programs for the construction industry.

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10 REPORTS general news J U LY / A U G U S T 2 0 1 6

Mates dine out at The MATES Lunch

Long term still positive for building industry

Bankwest chief economist Alan Langford at the Master Builders Economics Breakfast.

The more than 140 building and construction industry guests at the recent annual Master Builders Bankwest Economics Breakfast were told that the prospects for WA’s economy and the building industry remain good.

MICWA CEO Godfrey Baronie and chairman Colin Emmott flanked by The MATES Lunch guests Glenn Mitchell (left), John Bowe (second from right) and Karen Tighe.

MATES in Construction WA recently held its annual fundraising event, The MATES Lunch, at the Hyatt Regency in Perth.

About 250 people from the construction industry and other related organisations came together to listen to speakers talk about their experiences with mental health, to participate in the live and silent auctions, raffle and to enjoy a delicious meal and drinks.

Sport was an ongoing theme among the speakers. MC Tim Gossage interviewed Perth husband and wife sports broadcasting presenters Glenn Mitchell and Karen Tighe who shared their experiences surrounding Mr Mitchell’s mental breakdown, how it had affected him in the short and long term, and how the family coped. It was a serious discussion but not without its amusing side arising from the friendly competition and banter among the three sports commentators.

WA Mental Health Commissioner Tim Marney set out the sobering statistics of suicide in the construction industry where people are six times more likely to die from suicide than from an industry related accident.

Attendees at The MATES Lunch included building and construction companies, unions, construction support companies (such as Cbus and ReddiFund) and accountancy, insurance and banking firms.

Motor racing champion John Bowe was a keynote speaker, entertaining the audience with anecdotes from his sporting career, but, importantly, telling of his experience with depression which became apparent in his last year of racing. He spoke of assistance through his GP and other health professionals, accessing treatment and learning to live a different, but still fulfilling, life with a mental illness.

If you or someone you know needs assistance, call the 24/7 hotline 1300 642 111.

James Bollen, a builder in his early twenties, spoke about his experience of going through tough times as a late teen. Working in the construction industry, he realised he was struggling with life and didn’t know how to go about changing his situation. Mr Bollen spoke with a union organiser who immediately put him in touch with MATES in Construction WA. This led to on-site support the same day, with ongoing case management from the MICWA staff. Mr Bollen told the audience about the enormously positive changes in his life and, as with Mr Bowe, strongly advocated people speak up and ask for help when they are struggling.

Key industry leaders Alan Langford (Bankwest chief economist) and John Hackett (LandCorp general manager metropolitan and industrial) spoke about the current economic climate and predictions for the future of WA’s economy and development.

Mr Langford covered WA’s population growth, building approvals and commencement statistics, iron ore predictions and the State Budget.

He recognised the building industry downturn but referred to future long-term improvement. WA’s growth in the past eight years had been a once in a century event and although some balancing in both population and residential housing over the next 12 to 18 months would be seen, the WA economy was still growing and the long-term view was positive.

Mr Hackett provided an overview of LandCorp’s developments recently completed and under construction.

He explained how the authority plans to transform underutilised spaces to stimulate the economy and promote statewide trade and employment opportunities.

He was optimistic in his outlook for the State and saw many positives for the future of the building industry.

Master Builders’ president Robert Spadaccini (right) and past president Robert Shaw attended The MATES Lunch.

The Economics Breakfast, at Crown Perth, was also an opportunity for the launch of Master Builders Australia’s Strong Building, Strong Economy video. The Strong Building, Strong Economy campaign established what the Master Builder movement would be pushing for at the Federal election – construction of more homes and community infrastructure, employing of more workers and training more apprentices.

general news REPORTS 11 J U LY / A U G U S T 2 0 1 6

Boom time for Wanneroo performers of the past decade, and are set to be joined by the emerging sectors of clean technology, agribusiness and advanced manufacturing and engineering.

The City of Wanneroo is home to two major industrial areas (Wangara and Neerabup), two secondary centres (Wanneroo and Clarkson) and four district centres (Alexander Heights, Butler, Girrawheen and Kingsway).

With a large and growing population, strategic employment locations and available and affordable land for business and residential growth, the City of Wanneroo is booming.

The City of Wanneroo is one of WA’s busiest local governments for building approvals, processing more than 7000 in each of the past two years and its efficiency saw it awarded the inaugural Local Government Best Practice Award at the Master Builders Bankwest Housing Excellence Awards earlier this year.

In recognising the important role local government plays in the building industry, Master Builders introduced the award to acknowledge councils which members believe are performing best.

The City of Wanneroo was voted as a leader in efficiency and responsiveness with building applications and customer service.

“In recent years the City has really worked on improving in this area,” Mayor Tracey Roberts says. “What makes our fast turn-around times even more impressive is that we are one of the busiest councils in this area, and our Building Services team are to be commended on the fantastic work they are doing to reduce the red tape in the industry.

“This really is a significant award for the City as we were nominated and judged by the building sector. It is really exciting to know we are standing out from the crowd.”

While agriculture and market gardens were the traditional land uses in the region, construction, manufacturing and retail have been the star

“We are also home to the planned Yanchep Strategic Metropolitan Centre which is 61 kilometres from the CBD,” Mayor Roberts said. “Neerabup is still developing. At 1000 hectares in total, it is the largest industrial complex in the northern corridor of the Perth metropolitan region, and has the potential to provide 20,000 jobs.

“It has strong regional connections, and is well situated on major transport routes, ensuring accessibility for workers as well as freight transport requirements.

“Wanneroo is fast becoming a destination of choice and an economic and residential powerhouse,” Mayor Roberts said. “Every day up to 21 new residents move into the area – we have been growing at a rate of more than 7500 each year.

“When you think back to where we started with a population of about 100 at the time of settlement in 1902, growing to 1100 in 1950, 8000 in 1970, 80,000 in 2001, and in the past 15 years our population has more than doubled to 195,000, it really is a remarkable story.”

By 2036, the number is expected to reach 350,000 and with the development of new suburbs and land releases to cater for the exploding population, the building industry in perfectly positioned to make the most of the many opportunities in the northern corridor.

“The City currently has 70,000 dwellings. However, by 2036 there will be 127,000 – that’s 57,000 more,” Mayor Roberts said. “Each year we are adding 2800 new houses, or to put that in perspective that is eight every single day – at least a new street every week. Our rapid growth really does provide enormous opportunities.”

Mates ride for a good cause Master Builders held its annual Ride against Suicide in April, departing Kings Park for the Wheatbelt on a mission to raise awareness of, and money for, MATES in Construction WA. The ride has grown in interest each year since its inception in 2014 when 22 people registered. This year saw an impressive 69 riders, setting a new record for the event.

Mental Health Commissioner Tim Marney and Local Government Minister Tony Simpson opened the event at Kings Park, thanking all those taking part in the ride for their support of the MATES in Construction cause – tackling suicide and mental illness in the building industry.

Highly visible: the Master Builders’ Ride against Suicide bikers assembled in Kings Park.

The ride raised more than $10,000 through donations and ticket sales. The proceeds will be handed officially to MATES in Construction at the Master Builders Excellence in Construction Awards at Crown Perth in July.

12 REPORTS branches J U LY / A U G U S T 2 0 1 6

Hot topic

Building Excellence has its rewards South West Branch members recently attended a review of the Master Builders Bankwest Building Excellence Awards process.

South West Branch members attended a panel discussion on bush fire reform.

With the introduction of the State Government bush fire reform package, Master Builders’ South West regional office recently hosted a panel discussion at the Association’s centre in Bunbury involving members from the residential, commercial and professional sectors.

Representatives from the Building Commission, Western Australia Local Government and private assessors explained to about 40 attendees, the parameters now in place to mitigate risk in fire prone zones.

Concerns raised included the quality of assessment, locality in relation to future clearing of sites and cost imposts on owners wishing to develop in the areas.

Timing and the consultation process to date was said to be somewhat rushed leaving minimal time for builders and consumers to adjust to the new regulations.

The South West Branch will be presenting further information for members at a forum in the coming months. For information, contact the South West office team on 9726 0939 or at southwest@mbawa.com.

Q and A in Geraldton

Peter Bisby (left), Glen Coombs, Trevor Lake, Tom Jacobs, Paul Lalor and David Blakemore at the Geraldton Q and A.

With the end of the financial year looming, Master Builders’ industry partner RSM joined Jackson McDonald and MBA Insurance Services for an informative round table Q and A session at the Association’s Geraldton Training Facility recently.

Jackson McDonald partner Tom Jacobs spoke extensively on copyright law and adjudication

and was joined by Nick Vernon from MBA Insurance Services outlining the importance of cover in these areas. RSM director Trevor Lake discussed how builders and trades need financial protection against business pitfalls and also looked at preparing for the end of financial year.

The majority of members entering the awards were well represented at the review attended by Association marketing manager Kelly Dewar-Matusik and events manager Monique Milne. Discussion covered the focus of the Awards and the way Master Builders continuously strives for better processes for members.

Hot topics included earthwork costings, customer service entries and an overview of judging and entrant criteria.

Head regional judge Charlie Baggetta explained to members that the judging criteria are very clear and concise and judges solely review the quality of workmanship – the skills of the traditional tradesman – in every build. The focus on substance over style sets the Master Builders Awards apart from other building industry awards.

Based on the members’ standpoint, the meeting compiled recommendations on ways to improve the Awards process.

The recommendations currently are being reviewed by Master Builders’ Housing Council.

branches REPORTS 13 J U LY / A U G U S T 2 0 1 6

WinBaC poolside in Broome

Perfect to a tee

Broome’s annual WinBaC gathering, in ideal surroundings, was well supported by the locals.

In the lead up to the Kimberley Pilbara Building Excellence Awards in Broome in May, Master Builders’ Women in Building and Construction held its annual Broome gathering poolside at the Oaks Resort at Cable Beach.

Out on the course: Dave and Jonelle Dibble, Jon Brierley and Malcolm Hodges.

Guests at the breakfast included the Federal Member for Durack Melissa Price and Anna McLean, wife of Master Builders’ director Michael McLean.

The striking Galwey Pearls collection, ready to be won by a lucky attendee at the Building Excellence Awards that evening, was on display. Kartika Simosado, representing Galwey, spoke of her long association with the company and with pearls. Her grandfather was one of the early pearl divers in Broome so she had grown up with a love of Broome and its rich culture and has many stories.

Oaks general manager Ashley Munn, who arrived in the town seven years ago and who recently purchased a new home, also was passionate about Broome and said he was there for the long haul. His number one priority was to provide good customer service.

“If the ladies’ champagne breakfast was any indication, he is certainly on the right path,” says Master Builders’ regional manager Di Gilleland.

“Thanks to Oaks Resorts and Hotels and Galwey Pearls for supporting this annual, much-loved event. And thanks also to Evelyn Willis from Broome Fire for her support though she was unable to attend this year.”

Currying favour at quarterly dinner

Geraldton Branch golf day winners Dale Taylor, Geoff Willis, Tony Schiano and David Blakemore.

Geraldton Branch’s Midland Brick Corporate Golf Day was held in April with 77 competitors stepping out at the Geraldton Golf Club for the nine-hole Ambrose event.

Regional Manager Di Gilleland reports the golfers were fuelled up at the halfway point by Kingspan’s Rory and David sizzling sausages to perfection.

“The day provided a perfect opportunity for the building industry to network and share a few laughs over a great game of golf,” she said. “This annual event has been ongoing for the last 17 years and continues to be a popular day for builders, trades and industry partners.”

Winners on the day were Dale Taylor, Geoff Willis, Tony Schiano and David Blakemore. Runners up were Ashley Cooper, Barry Cooper, Lance Cooper and Paul Walton. The dubious NAGA honours went to Troy Hutchinson, John Hutchcraft, Ray Cooper and Cathy Hutchinson.

The Great Southern Branch added a little spice to its April quarterly dinner meeting, holding a curry evening. Regional Manager Linda Gibbs reports the event was enjoyed by all those attending. Haymes sponsored the evening with Shane Wright and Kevin Davies giving an informative presentation about their paint products.

14 KIMBERLEY PILBARA AWARDS J U LY / A U G U S T 2 0 1 6

Shades of Italy at

Broome Awards

Zanders on Cable Beach was again the venue for the Bankwest Master Builders Kimberley Pilbara Building Excellence Awards.

The ‘Carnevale’ theme brought out colourful feathers and stunning masks at the 2016 Master Builders Bankwest Kimberley Pilbara Building Excellence Awards in May, but there was no disguising the quality work of the night’s major winners, PGM Constructions and Pindan Contracting.

A new player in this year’s Awards, PGM Constructions won the coveted Best Country Home Award for its Dunnart Crescent, Broome home which also was recognised as winner of the $500,000-$650,000 Contract Homes category and for excellence in cabinet making and wall and floor tiling. The home also boasted the Best Appointed Bathroom and Best Appointed Kitchen Awards.

Pindan Contracting won the Best Commercial Building gong for its Fitzroy Crossing Courthouse project. The entry had topped the $2.5$6.5 million Commercial/Industrial Building category and also won awards for excellence in roofing and for innovative cladding.

The flamboyant Carnevale theme set the tone for the Awards night of celebration at Zanders on Cable Beach. Among the guests were the State Attorney General Michael Mischin and the Federal Member for Durack Melissa Price.

Builders entering the Awards went into the draw for a stunning $5000 Broome pearl collection by Galwey Pearls. Owner and designer Lyndal Galwey drew the winner, giving Michael Smythe of Custom Lifestyle Homes, already a winner for Best Contract Home in the $300,000-$350,000 category, something more to smile about.

Other significant award winners included Broome Builders, taking its fourth successive Best Customer Service Award along with recognition in a number of other categories. Representatives of H&M Tracey Construction took to the podium on nine occasions with project category wins across residential and commercial jobs and for Supervisor of the Year in Matthew Hall, Employer-Trainer of the Year, Excellence in Energy Excellence and Project Builder of the Year.

In addition, winning Apprentice of the Year Jeremy Allen, in his third year of training, is an integral member of the Broome Builders team.

Mr Allen was described as having received enormous praise from his TAFE lecturers throughout his apprenticeship and as engaging in open dialogue with his supervisors. His ability to perform at a high level is matched by his interpersonal skills, making him well respected and genuinely liked by his fellow employees and contractors.

Elson Builders would have pleased the Prime Minister with its Judges’ Innovation Award and Innovative Use of Building Material Award. The company also topped two Contract Home categories and took trade awards for carpentry and painting.

Another Awards newcomer, Exmouth builder Bruce Turner Creations, won the Over $1 million Contract Homes category and the trade award for concreting.

The night marked the Awards’ fourteenth year in Broome. Regional manager Di Gilleland reported that the event was rated a huge success by the 160 guests.

KIMBERLEY PILBARA AWARDS 15 J U LY / A U G U S T 2 0 1 6

ns’ tructio ilders’ Cons u r PGM -r) Master B , Rob e n in ew ith(l nzie y Hom plaque) w nda McKe ents and tr n u o g li m Best C nzie (holdin daccini, Be Develop erguson. cKe Spa Estate van F Paul M ent Robert r Roebuck ge and Be presid of sponso Kelly Stran rs ies Menz ome owne h proud

Pindan Contracting won the Best Commercial Building Award. The company’s Greg Birch (centre) accepted the Award and is pictured with John Lazarov of sponsor Bankwest (right) and Robert Spadaccini.

irit: nevale sp orth. to the Car erw Getting in and Daniel Shutt enny Rachel K

Victor Butera (left), Steve Norman and Ashlea Thompson represented Broome Builders to collect the Best Customer Service Award, the company’s fourth win on the trot in this category. They are pictured with Bankwest’s John Lazarov.

16 KIMBERLEY PILBARA AWARDS J U LY / A U G U S T 2 0 1 6

Winning home has pizzazz

Newcomer PGM Constructions made a spectacular entry into the Kimberley Pilbara Building Excellence Awards with their Best Country Home winner in Dunnart Crescent, Broome. The quality of workmanship and materials used in the home make a strong impression. Features such as floor to ceiling tiled bathrooms, an impressive ensuite and walk-in robe, white gloss finish to cabinetry, white glass wardrobe doors, outdoor living area with cedar ceilings, timber decking and custom kitchen give the home a real wow factor.

Awards Sponsors

Courthouse melds into surroundings

Pindan Contracting’s Kimberley Pilbara Building Excellence Awards Best Commercial Building, the new Fitzroy Crossing Courthouse, is a significant improvement to the West Kimberley region’s justice infrastructure. Designed by Sandover Pinder Architects for Building Management and Works, and with input from the local community and judiciary, the courthouse was specifically planned to complement the newly constructed police station and to incorporate shaded landscape areas.

The $4.3 million build was completed in July 2015.

KIMBERLEY PILBARA AWARDS 17 J U LY / A U G U S T 2 0 1 6

Awards honours list BEST COUNTRY HOME Sponsor: Roebuck Estate Developments PGM Constructions Dunnart Cres Broome BEST COMMERCIAL BUILDING Sponsor: Bankwest Pindan Contracting Fitzroy Crossing Courthouse Cnr Fallon and McLarty Rds Fitzroy Crossing APPRENTICE OF THE YEAR Sponsor: Kimberley Roof Design Jeremy Allan Broome Builders SUPERVISOR OF THE YEAR Sponsor: Allpest Matthew Hall H&M Tracey Construction EMPLOYER – TRAINER OF THE YEAR Sponsor: Kimberley Group Training H&M Tracey Construction

CONTRACT HOMES $500,000 - $650,000 PGM Constructions Dunnart Cres Broome CONTRACT HOMES $650,000 - $850,000 Sponsor: Oilfields Transport Services Broome Builders Citana Way Cable Beach CONTRACT HOMES OVER $1,000,000 Sponsor: Oilfields Transport Services Bruce Turner Creations Gnulli Ct Exmouth BEST ANCILLARY DWELLING Sponsor: Building Commission H&M Tracey Construction Taiji Rd Cable Beach RESIDENTIAL ALTERATIONS & ADDITIONS UNDER $100,000 Broome Builders Mostyn Pl Broome

PROJECT BUILDER OF THE YEAR Sponsor: Keystart H&M Tracey Construction

RESIDENTIAL ALTERATIONS & ADDITIONS OVER $200,000 H&M Tracey Construction Louis St Broome

BEST CUSTOMER SERVICE VOLUME PROJECT BUILDER Sponsor: Bankwest Broome Builders

MULTI RESIDENTIAL DEVELOPMENTS $1,000,000 - $2,500,000 CWD Builders – Developers Corkwood Ct Kununurra

CONTRACT HOMES UNDER $250,000 North West Builders Shiosaki Brace Bilingurr

MULTI RESIDENTIAL DEVELOPMENTS $2,500,000 - $6,500,000 H&M Tracey Construction Clarendon St Derby

CONTRACT HOMES $250,000 - $300,000 Broome Builders Warnangarri Lane Cable Beach CONTRACT HOMES $300,000 - $350,000 Custom Lifestyle Homes Tomarito Cres Bilingurr CONTRACT HOMES $350,000 - $400,000 H&M Tracey Construction Warnangarri Lane Cable Beach CONTRACT HOMES $400,000 - $450,000 Elson Builders Sanctuary Rd Cable Beach CONTRACT HOMES $450,000 - $500,000 Elson Builders Fairway Dr Cable Beach

COMMERCIAL/INDUSTRIAL BUILDINGS $1,000,000 - $2,500,000 Sponsor: McKeno Blocks & Pavers H&M Tracey Construction Dambinmangari Aboriginal Corporation Office Guildford St Derby COMMERCIAL/INDUSTRIAL BUILDINGS $2,500,000 - $6,500,000 Sponsor: McKeno Blocks & Pavers Pindan Contracting Fitzroy Crossing Courthouse Cnr Fallon and McLarty Rds Fitzroy Crossing COMMERCIAL/ INDUSTRIAL BUILDINGS OVER $6,500,000 Norbuilt Kimberley Land Council Offices Gregory St Broome

COMMERCIAL ALTERATIONS & ADDITIONS UNDER $1,000,000 Tjallara Building Company Magabala Books Bagot Rd Broome COMMERCIAL ALTERATIONS & ADDITIONS $2,500,000 - $6,500,000 CWD Builders – Developers Toll Express Sandhill St Wedgefield COMMERCIAL ALTERATIONS & ADDITIONS OVER $6,500,000 CWD Builders – Developers Ngalangangpum School Cnr Great Northern Hwy and Warmun Rd Warmun EXCELLENCE IN CARPENTRY Sponsor: Qantas Elson Builders Kapang Dr Cable Beach EXCELLENCE IN CABINET MAKING Sponsor: Jackson McDonald GKM Cabinets Dunnart Cres Broome EXCELLENCE IN INNOVATIVE CLADDING Sponsor: Oaks Hotels and Resorts Pindan Contracting Fitzroy Crossing Courthouse Cnr Fallon and McLarty Rds Fitzroy Crossing EXCELLENCE IN ROOFING AWARD Sponsor: Kimberley Truss, James Hardie Team Roof Fitzroy Crossing Courthouse Cnr Fallon and McLarty Rds Fitzroy Crossing EXCELLENCE IN PAINTING Sponsor: Valspar Elson Builders Kapang Dr Cable Beach EXCELLENCE IN CONCRETING Sponsor: McCorry Brown, Holcim Bruce Turner Creations Crevalle Way Exmouth EXCELLENCE IN STRUCTURAL STEEL Sponsor: Stratco KMPL RFDS Patient Transfer Facility and Hangers Gus Winkle Dr Broome

18 KIMBERLEY PILBARA AWARDS J U LY / A U G U S T 2 0 1 6

Awards honours list EXCELLENCE IN GLAZING Sponsor: Viridian Commercial Glass Kimberley Land Council Offices Gregory St Broome EXCELLENCE IN WALL & FLOOR TILING Sponsor: Carpet Paint & Tile Centre Joel Gooch Tiling Dunnart Cres Broome EXCELLENCE IN CEILINGS Sponsor: Cbus Steve Sharpe Kapang Dr Cable Beach

EXCELLENCE IN ENERGY EFFICIENCY Sponsor: Stiebel H&M Tracey Construction Nishiji Vista Broome North BEST APPOINTED BATHROOM Sponsor: Tradelink PGM Constructions Dunnart Cres Broome BEST APPOINTED KITCHEN Sponsor: Bosch Hot Water PGM Constructions Dunnart Cres Broome

BEST STEEL BUILDING Sponsor: Colorbond CWD Builders – Developers Toll Express Sandhill St Wedgefield INNOVATIVE USE OF BUILDING MATERIAL Sponsor: Ray White Broome Elson Builders Kapang Dr Cable Beach JUDGES’ INNOVATION AWARD Sponsor: Blackwoods Elson Builders Kapang Dr Cable Beach

EXCELLENCE IN CONSTRUCTION AWARDS

Record entries and quality impress ECA judges

ECA judges for 2016 (l-r): Max Rivett, Kevin Sale, Frank Pitman, Rod Mollett, Robert Johnson and Rod Sproule.

Judging for the 2016 Master Builders Bankwest Excellence in Construction Awards has concluded. This year has seen a record number of 111 entries over 75 individual commercial projects completed in the last 12 months.

The huge task of inspecting all entries was undertaken by a panel of expert judges, all of whom spent the majority of a three-week period travelling to each construction project from Roy Hill to Secret Harbour, and points in between.

The 2016 judging panel consisted of builders Kevin Sale, Rod Sproule and Max Rivett, architects Rod Mollett and Robert Johnson and engineer Frank Pitman.

Judges assessed the quality of construction, project management, value for money, innovation and site management of each of the entries and met in May to determine results.

Master Builders’ events manager Monique Milne says the consensus among judges was that the quality of projects was extremely high.

“The level of workmanship has stunned the panel,” she said. “The awards will be presented at the annual Master Builders Bankwest Excellence in Construction Awards on 23 July at Crown Perth and it is definitely a night not to be missed. Sincere thanks are due to our six judges without whose expertise and dedication the Awards could not happen.”

building business UPDATES 19 J U LY / A U G U S T 2 0 1 6

At the cutting edge: virtual reality property tours In today’s competitive ‘off the plan’ apartment market, agents around Australia are embracing virtual technology as an option to give them an advantage over other sellers.

Already, there is a broad range of virtual technology for developers to adopt, including: • Fully immersive virtual simulations where potential buyers visit a display suite and put on a virtual reality headset to view the final product, • Augmented reality environmental simulations where visitors to a development land site can see a virtual construction on site at life size.

• Virtual print advertising allowing marketing material to show virtual models of apartments.

• Mobile application virtual brochures for ‘off the plan’ apartments.

Due to high price and a lack of proven results, there has been reluctance to adopt this technology in construction marketing. However, the market is changing and developers need to be aware of this to gain early adopter advantages.

It may seem odd today that we will have virtual reality headsets in our homes which we will use to go on virtual experience journeys. But if Facebook, Samsung, Sony, Microsoft, Google and a few billion dollars of financial backing are any influence on how we engage technology, this will be the norm. Look at how mobile smart devices have changed the world in the last five years. The next five are going to be more exciting and more engaging.

With release of VR headsets due in 2016 from the largest players in virtual reality hardware, it is a great time for the property industry to get involved in virtual marketing to anyone, anywhere. oneVR has been researching all virtual reality and augmented reality property simulation options and industry solutions since 2011, resulting in extensive knowledge of what property developers need to better use virtual technology in their marketing. oneVR is working alongside property developers and marketing agencies to benefit from the marketing potential of new technology. Campaign brochures, websites and mobile applications have a new level of power, both for the user to better understand and access property before and for clients to enhance their marketing potential in detail globally. oneVR recently launched a new application, ApartmentVR by BGC Development, which is available on both Apple and Google Play stores.

We’ve moved 2 minutes down the street!

The application is focused on easily bringing high quality virtual reality to everyone. BGC Development can showcase its latest off the plan Sixty Flourish Apartment to a mass audience online through easy-to-use virtual property tours. The high quality tours remove the ‘gamey’ look of most current virtual tours so viewers have a more realistic insight on the final property space and environment.

Virtually seeing a property before it is built is only scratching the surface of the potential behind virtual marketing. Industry feedback has shown that the sales process for most off the plan developments is recurring sales from previous buyers, high conversion rates for display booth visitors, and social media marketing. oneVR has been developing virtual applications for property developers to enhance their marketing as well as integrating the new world of virtual and mobile marketing.

We are only at the beginning of the technology shift. In the mass consumer world, computers have changed lives since 1980, the internet has shifted this further since the 1990’s, the millennium brought the true value of online marketing and 2007 introduced smart mobile devices we now can’t live without. In 2016, join the virtual ride.

MyLeave has a new home. You’ll now find us at Level 3, 50 Colin Street, West Perth.

Our phone and postal details remain unchanged. That’s a big thumbs up! www.myleave.wa.gov.au

20 UPDATES building business J U LY / A U G U S T 2 0 1 6

The smarter way to manage your vehicles

Master Builders’ partner easifleet has some hints on vehicle leasing.

What is an outright purchase?

An outright purchase involves paying the entire cost of a vehicle and acquiring full ownership.

Initial out-of-pocket costs, as well as monthly repayments are drastically higher than if a lease is taken out (about 30-60 per cent more).

These initial costs include a substantial downpayment, registration, insurance, number plates and stamp duty among other things.

Many buyers often face a difficult position when they become caught up in an ‘upside down’ situation. This occurs when a vehicle, due to depreciation, is worth less than what the buyer still owes on the car loan.

Outright purchasers have responsibility for maintenance costs.

As vehicles increase in age, the dealer warranty expires and expenses for major and minor maintenance come out of the owner’s pocket. It is also important to keep in mind that the older a vehicle gets, the more expensive it is to maintain.

What is an operating lease?

Under an operating lease, the purchaser leases, and only pay for a portion (the difference between the purchase price and residual value) of, the vehicle. At the end of the lease term, the lessee either buys the vehicle at the depreciated cost or returns it to the financier.

Some of the benefits include: • Continuous replacement of the current vehicle with a later model every few years at the end of each lease. Enjoy always being up-to-date with all the latest gadgets (not to mention improved safety features which are continuously updated in vehicles).

• Warranty is also usually included until the end of the lease term, creating peace of mind if the vehicle is compromised if it needs a major repair for whatever reason.

• All scheduled servicing, tyres, fuel and other ongoing costs can be bundled into one monthly payment, at cost price.

• There is no negotiating with dealers regarding selling or trading-in the vehicle which can save a lot of time and effort.

To find out more, speak to an easifleet SME leasing specialist and discover the most cost effective solution for your business: 1300 266 828 or business@easifleet.com.au.

THE AMAROK. Easy on the eye, isn’t she? But let’s face it, appearances won’t get you very far on a continent as unforgiving as ours. That’s why we’ve made sure that everything that is underneath the superficial is tough enough to take whatever Australia has to throw at it. Take away the stylish grille, the shiny panels, the chrome badge and the rest of the fancy trimmings, and you’ll find the German engineering that puts the Amarok in a class of its own. With a bi-turbo diesel engine that delivers up to 420Nm of torque, a 5-star ANCAP safety rating, selectable off-road mode and a rigid ladder frame chassis, we’ve made sure that tough is never an optional extra. Tough comes from within.

Uncover more at thenakedute.com

22 UPDATES building business J U LY / A U G U S T 2 0 1 6

Unwrapping the 2016 / 17 Federal Budget

RSM director – business advisory

David Johnston With the Federal election on the horizon, the 2016/17 Budget was not expected to produce major change. Nevertheless, it did deliver more than many thought we would see.

The Federal Government realises that the mining investment boom is over and is trying to stimulate the economy and jobs growth through investment in infrastructure and reducing tax on businesses, in turn encouraging businesses to reinvest in the economy. Business and individual tax cuts come at a cost and it seems that cigarette smokers, and some superannuants, have been left as losers in this Budget.

The construction industry is a significant driver of economic activity in Australia. It is Australia’s third largest industry, behind only mining and finance. It comprises close to 350,000 businesses nationwide and is mainly made up of businesses with fewer than 20 employees. While the industry will breathe a sigh of relief that there were no surprises in the 2016 Budget (e.g. no changes will be made to negative gearing), the expected ease in the growth of dwelling investment to only one per cent by 2018 will dampen any excitement concerning the extension of concessions for small business to businesses with a turnover of less than $10 million.

Australian resident companies, especially those in the $2-10 million turnover range, will be able to access tax concessions relating to outright deductions for low cost assets, and simplified measures for depreciation, trading stock, GST and FBT. The proposed reduction in the company tax rate to 27.5 per cent from 1 July 2017 for companies with less than $10 million turnover and eventually 25 per cent in the 2027 financial year for all companies, will have an impact on dividend yields and tax payments for shareholders in both private and public companies.

From a tax perspective, the announcements concerning the changes to lifetime caps to non-concessional superannuation contributions, pension transfer balance caps, the change in the small business entity thresholds and the extent of the company tax rate cuts were certainly not anticipated by the pundits.

RSM recommends: • Individuals review their superannuation balances and pension strategies leading up to retirement.

• Independent contractors in the building and construction industry operating as sole traders or partnerships consider changing their business structures to companies to access the reduced company tax rates for companies with a turnover of less than $10 million.

Case study Bob is a sole trader who operates as an independent contractor in the building and construction industry. Bob’s taxable income from his construction business amounts to $150,000. He earns no other income.

Under the current rules, the tax discount is five per cent. From 1 July, this increased to eight per cent with a maximum discount of $1000. Bob will pay approximately $45,132 (including the Medicare levy) in tax under the new rules which provides a saving of $1,315. The tax discount for sole traders amounts to $1000 of this saving.

This article was prepared by RSM director – business advisory David Johnston, contact david.johnston@rsm.com.au.

PROUD SUPPORTER OF FIFTY SHEETS OF PLASTERBOARD AND FEWER STINGING BACKACHES.

USG BORAL SHEETROCK® PLASTERBOARD. LIGHTER.* STRONGER. SMARTER. USG Boral Sheetrock® Plasterboard answers your calls for stiffer, stronger boards that won’t weigh down your crew. Sag-Defying Strength™ helps reduce maintenance from potential long-term ceiling creep, and sharper score and snap allow for easy install. Add the fact that USG Boral Sheetrock is the lightest plasterboard in Australia,* and your crews will be able to work flat-out without getting flattened. USGBoral.com

*USG Boral 10 mm and 13 mm Sheetrock plasterboard compared to competitive 10 mm and 13 mm plasterboard produced in Australia as at 1 April 2016. © 2016 USG BORAL. All rights reserved. The trademarks USG BORAL, SAG-DEFYING STRENGTH and INNOVATION INSPIRED BY YOU are trademarks of USG Boral Building Products or one or more of its affiliates.

SHEETROCK is a trademark owned by United States Gypsum Company and used under license.

24 UPDATES building business J U LY / A U G U S T 2 0 1 6

Superannuation for business Master Builders’ partner Cbus provides an overview of superannuation essentials.

Paying compulsory superannuation Under the Superannuation Guarantee legislation, the current super contribution rate payable to employees is 9.5 per cent of ordinary time earnings. However, this rate might be higher if there is an Industrial or Enterprise Bargaining Agreement in place.

Super contributions do not have to be paid for employees who: • Earn less than $450 (before tax) per calendar month.

• Are under 18 years old, and work 30 hours or less per week.

Giving employees ‘choice’ of super fund New employees eligible to choose their own super funds need to be provided with a Standard Choice Form within 28 days from their start date. If a new employee doesn’t elect to choose a specific super fund, the employer must pay the super contributions into its nominated ‘default’ fund.

Choosing the default fund A default super fund is the super fund that a business nominates as the best fit to take care of the superannuation needs for all its employees. It is important to choose a fund that acts in the best interests of the business and employees.

By choosing Cbus as your default super fund, you’ll join the leading industry super fund for the construction, building and allied industries.

Cbus is unique. Through our wholly owned subsidiary Cbus Property Pty Ltd, we invest back into the industry which creates jobs for the industry and helps boost our local economy.

Record keeping Businesses need to keep the following records in English for five years: • Records showing the Standard Choice Form has been provided to all eligible employees.

• Details of employees who do not have to be offered a Standard Choice Form.

• Documents issued by the super fund showing super contributions have been made to an employee’s chosen fund (for example, annual record of contributions statement).

• Records confirming that the business’s chosen default super fund is a complying fund. This is usually found online, on the super fund’s website.

Understanding SuperStream SuperStream is a Government reform to do with businesses and how they manage their superannuation responsibilities. It is aimed at improving the efficiency of the super system that a business uses to make super contributions to its employees.

Under SuperStream legislation, businesses are required to make super contributions on behalf of their employees online by submitting data and payments electronically. Businesses with 20 or more employees already should have been paying superannuation contributions via an online payment system since October 2015.

Businesses with 19 or fewer employees needed to start paying super contributions via an online payment system by 30 June this year.

If you are unsure about the SuperStream rules, or need help getting set up on an approved payment system, call Cbus Super Fund on 1300 361 784.

Using Cbus Super payment systems Cbus offers two options when it comes to online payment systems for businesses. Both are available for Cbus employers to use at no cost, and both meet employer obligations under the SuperStream regulations.

The Cbus Clearing House (provided by Westpac Banking Corporation for Cbus employers) is an online payment tool which allows employers to submit multiple employee super contributions into multiple super funds, including Cbus, using one data file and one

payment. Cbus then will distribute payments to Cbus members’ accounts, and into other super fund accounts on the employer’s behalf.

Employer SuperSite is an online employer super account and payment facility that allows employer to: • Make super payments using BPAY®, Direct Debit or Electronic Funds Transfer.

• Access and update records, including employee details.

• Access full employer transaction history, including access to payment reports.

Supplying Tax File Numbers When employees provide their Tax File Numbers, the employer is required by law to provide this information to the employees’ super funds within 14 days or when first contributions are made on the employees’ behalf.

If TFNs are not provided, employees will be unable to make additional personal contributions and might pay more tax on their super as a result. For more information, visit the ATO website or call 13 10 20.

This information is about Cbus. It doesn’t take into account your specific needs or circumstances. You should look at your business objectives and requirements before making any decisions with or without the assistance of a financial adviser. Read the Cbus Employer Handbook and relevant Cbus Product Disclosure Statements to decide whether Cbus is right for you.

Call 1300 361 784 or visit www.cbussuper.com.au for a copy.

advertorial 25 J U LY / A U G U S T 2 0 1 6

TAKE THE GUESS WORK OUT OF SUCCESS Being an independent builder in today’s competitive market can be a tough gig but what if there was an easier way to grow your business and ensure more success? What if there was a way you could grow your business by 400 percent? Would you be interested?

For most people the simple answer would be yes! Luke Farraway asked how and he has never looked back since discovering that the answer lay in becoming a G.J. Gardner franchisee for Bathurst in NSW. “In our first few months of operation our enquiries almost quadrupled thanks to the strong reputation of the brand,” said Luke.

Having a 21-year industry career that included building a house featured on Grand Designs and owning their own business, Kate and Luke Farraway certainly knew a thing or two about building when they decided to become G.J. Gardner Homes franchisees.

“Moving our business to the G.J. Gardner Homes brand enabled us to have better operational systems in place, ensuring better time management of our projects which has ultimately allowed us to get our customers into their homes quicker.

“We are also more competitive in the market thanks to the increased buying power being part of the group provides. The quoting system ensures we can provide clients with a one up front complete cost with no hidden extras.”

G.J. Gardner Homes, winner of Franchising Council of Australia Award for Excellence in International Franchising 2013, has helped more than 120 franchisees around the world reach the next level.

Small business operators who are trying to do it all themselves would appreciate the fine-tuned, fully integrated system that seamlessly links all aspects of a project together, from sales right through to estimating and account management. Not only does this system produce a high quality and all-encompassing finished quote, it provides more of the most valuable asset we desire – time.

And time freed up from administrative jobs allows for attention to revenue generating aspects of a business, such as sales and marketing. Many small business owners without dedicated sales and marketing staff are reliant upon word-of-mouth advertising to secure new customer leads. While this can be an effective method for ensuring a steady stream of work, it may now allow for expansion.

As well as growth through the efforts of dedicated marketing support, franchisees enjoy an enviable position of being sought out by potential homebuilders due to their alignment with a trusted brand renowned for quality workmanship. This was one of the draw cards that drew Dermot Phelan of Perth to GJ Gardner Homes as a franchise owner.

“We receive great marketing support through having a dedicated Perth based Marketing Manager available at all times to assist”.

If you’ve got a head for numbers, then the figures alone speak volumes.

The average sole trader builder grows their business up to 400 percent within three years of becoming a G.J. Gardner franchisee and this boom in sales was what initially attracted Robert McMaster of Ballarat.

“We planned on 10 deposits in our first year and ended up doing 37,” Robert said.

“The savings in supplier and subcontractor pricing make us incredibly competitive, helping us win business from other major home builders, which we could never do before.

“Our sales team also has access to hundreds of G.J. Gardner Homes plans, many of which are priced up and ready to use. This ensures we build the right home, on the right plot for the right family, at the right price.”

“Joining G.J. Gardner Homes has really helped me build a better business, which has been extremely satisfying. I have grown as a person, as a builder and as a leader. It was a good move to make.”

For more information contact: Liam Sheehy Phone: 0499 151 207 Web: www.gjgardner.com.au/franchise

26 UPDATES housing J U LY / A U G U S T 2 0 1 6

National Residential Council meets on strategy

Past president of Master Builders WA Robert Shaw chairs the National Residential Building Council.

Master Builders’ housing director

Jason Robertson WA housing director Jason Robertson reports on a recent special meeting of the Master Builders Australia National Residential Building Council.

Housing Affordability has been identified as the National Residential Building Council’s highest priority.

The Council’s special strategic planning meeting at Master Builders Victoria, chaired by WA’s Robert Shaw, identified critical issues including stamp duty, infrastructure charges, GST, negative gearing, land costs, energy efficiency, planning, land release, population growth and change, labour costs, universal housing and valuations.

It was agreed that Master Builders Australia should continue to lobby the Federal Government to use its influence to drive State and Territory Government change on infrastructure charges, land release, planning and stamp duty. The Council also discussed the current Master Builders’ policy on negative gearing, GST (as it relates to residential housing) and housing tax incentives, and recommendations on additional work that could be undertaken to lobby the Federal Government on these issues to improve housing affordability.

The Council includes representation from builders and housing officers from across the Master Builder movement. WA was represented at the meeting by Board member and local Housing Council chair Jack Pleiter and housing director Jason Robertson. Master Builders Australia CEO Wilhelm Harnisch and general operations manager Denita Wawn attended.

Mr Shaw stressed that, with more than 70 per cent residential builder membership, it is critically important that, politically speaking, Master Builders owns housing issues and is relevant to residential members.

The NRBC needs to be revitalised to ensure this.

He detailed the national focus on strengthening the NRBC including the reintroduction of housing officers attending NRBC meetings. Input had to be balanced, however, between both builder representation and staff. The meeting was advised that a review had been undertaken and a report with a series of recommendations presented to the National Board. Recommendations accepted by the Board included that: • Associations appoint or re-appoint an NRBC builder representative and a housing officer to the Council.

• The strategic planning meeting identify issues and agree on a 12-month action plan. It was noted that working groups could be established to assist.

In addition to housing affordability, the meeting identified new technology and planning and infrastructure as top priorities.

New technology was discussed at length. To assist in formulating advice and providing education to builders, the Council recommended seeking expert input from universities and CSIRO on the impact of new technology on the building industry. The input also would help in considering policy implications for research and development, investment and competition.

Planning and infrastructure was identified as a key area for Master Builders to adopt a visionary approach. The Council recognised the impact of population growth and change on housing and related infrastructure. On the back of the mantra ‘we build everything’, the Council agreed on the need for a high level message and for continued advocacy on the importance of Master Builders and its members in infrastructure, development and cities policy.

Mr Harnisch said the special strategic planning meeting was of great importance and Mr Shaw won approval in articulating that, though each State and Territory has its own challenges, there is a need for a national unified strategic direction. He indicated the Council is there for the broader national membership, to strengthen Master Builders for the collective benefit of all members nationwide.

industrial relations UPDATES 27 J U LY / A U G U S T 2 0 1 6

Federal Court warning to CFMEU

Master Builders’ construction director

Kim Richardson In a blunt message in handing down $78,000 in fines and penalties against the CFMEU, a Federal Court Judge has issued a clear and unequivocal warning to the union to expect more severe fines should its leadership continue to take the attitude that paying large fines arising from continuing, intentional unlawful conduct is just the ‘cost of doing business’.

Judge Debra Mortimer observed the current level of fines imposed on the union is not having a moderating effect on the union’s conduct so larger fines will follow.

The Court’s harsh criticism of the union leadership appears to have been motivated by the flippant attitude of union officials when unlawfully blocking access to a Victorian site with union vehicles, saying the car keys had been lost. It also seems that the union’s and officials’ complete lack of contrition did not impress the Court, nor the fact the guilty pleas failed to concede any wrongdoing or that such action would not recur.

The CFMEU construction division has racked up about 80 convictions for unlawful conduct over the past decade with fines and penalties applied. Taking into account its own legal fees, which would not be cheap, the union has paid out millions in member funds for blatant unlawful conduct and breaches of the national industrial relations laws.

By its own actions and rhetoric, the union views this as a badge of honour and eulogises it as responsible unionism. However, it is not the conduct many other responsible unions adopt and so cannot be viewed as the norm; rather, it is the exception.

Master Builders has long argued for responsible and lawful conduct in the construction sector. That message falls on the deaf ears of the CFMEU which sees itself as above the law and accountable to no one.

This is also why Master Builders has been a long-time supporter of the Australian Building and Construction Commission and why the ABCC is sorely needed. The construction sector, those that work in it and the nation deserve so much better.

28 UPDATES industrial relations J U LY / A U G U S T 2 0 1 6

Strictly speaking: beware the Notice of Representational Rights

Renae Harding

Stephen Kemp

Enterprise bargaining is not a new concept for the construction industry. Construction companies have been negotiating collective agreements such as enterprise agreements (formerly known as workplace agreements and certified agreements) with employees and/or unions for the better part of 30 years.

However, even the most experienced employer can fall foul of the rigid rules that now must be adhered to in order to get an agreement approved by the Fair Work Commission (FWC).

The process and rules that must be complied with by employers, employees and unions is set out in the Fair Work Act (Cth) 2009 (FW Act). To commence bargaining, a vital first step is issuing the notice of representational rights (NERR) to employees.

Before approving an enterprise agreement, the FWC must consider whether the agreement has been genuinely agreed to and part of this consideration is whether the NERR was issued in compliance with the FW Act. Some recent FWC decisions are a reminder to strictly adhere to the form and content requirements of NERR’s under the FW Act. The NERR Section 174(1A) of the FW Act provides that a NERR must contain the content prescribed by the regulations, not contain any other content, and be in the form prescribed by the regulations.

The FWC has interpreted this provision very strictly.

The Regulations to the FW Act contain a model form for the NERR which can be found at Schedule 2.1 and the current version of the NERR can be accessed via the FWC’s website at: www.fwc.gov.au/documents/documents/legislation/download/ Sched_2_1.pdf

Strict compliance In Peabody Moorevale Pty Ltd v CFMEU [2014] FWCFB 2042 the Full Bench of the Fair Work Commission, when examining the requirements for an employer to issue a NERR, found that there was no scope for the employer to modify the content of the form: “There is simply no capacity to depart from the form and content of the notice template provided in the regulations. A failure to comply with these provisions goes to invalidity.”1 In Peabody, the employer sent its employees a pack of documents which included the NERR which was stapled to two other documents.

The Full Bench found that the notice in this case, because it had been stapled, constituted the NERR and the two additional documents and therefore was not valid notice as required under the FW Act. There are a number of other examples of invalid NERRs. Company logo and letterhead included on NERR. In January 2016, employer DP World Limited made two separate applications for approval of two single enterprise agreements with the FWC 2. Each of the NERRs contained a company logo and letterhead information. Commissioner Cambridge found that strict compliance with section 174 is “unquestionable”3. The inclusion of the company’s letterhead altered the form of the document and ultimately meant that the agreement could not be approved.

Commissioner Cambridge picked up on the same letterhead and company logo mistakes by the employer in Hawker Pacific Pty Ltd [2016] FWC 416. The agreement was also not approved in this instance on the basis that the employer had not provided a valid NERR. Incorrect website on NERR. In Transit (NSW) Services Pty Ltd T/A Transit Systems [2016] FWC 2742, the TWU argued that the NERR was invalid because it incorrectly referred to the FWC website (www.fwc.gov.au) instead of the Fair Work Ombudsman Website (www.fairwork.gov.au) at the bottom of the prescribed NERR form.

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Deputy President Bull held that the NERR was invalid because it referred to the incorrect website. Noting that the FWC has no discretion to approve an agreement when there is a departure from the prescribed NERR form, he refused to approve the agreement.

Deletion of clause from the NERR In Ostwald Bros Pty Ltd v CFMEU [2012] FWAFB 9512, Ostwald deleted the following clause from the version of the NERR which it sent to employees: “If you are a member of the union that is entitled to represent your industrial interests in relation to the work to be performed under the agreement, your union will be your bargaining representative for the agreement unless you appoint another person as your representative or you revoke the union’s status as your representative.”

At first instance and on appeal the FWC found that the failure to include this clause meant that no valid notice had been issued. Consequently, the FWC found that there would be no genuine agreement under the FW Act and declined to approve the agreement.

Minor Errors While there have been limited decisions that indicate that the FWC may accept a form that contains a typographical or minor error, these will usually be the exception to the norm that the agreement should be rejected. For example, in Cruise Whitsundays Pty Ltd [2016] FWCA 377, the employer had inserted its trading name on the NERR instead of its legal name by not including “Pty Ltd”. In that case Deputy President Bull approved the agreement despite this error on the basis that the error had not misled the affected employees.

Even if the agreement is approved despite such a minor error, the FWC will invariably require a submissions and possibly an oral hearing on the matter leading to not only the risk that the agreement might be rejected, but increased costs and time for the relevant employer.

Lessons Failure to comply with this step of the process will result in the FWC refusing to approve the enterprise agreement resulting in wasted time and costs and the need to start the process over. Employers should take the time to ensure that they provide a valid NERR and follow each step prescribed by the FW Act. The first step is to make sure that you have the correct, current version of the NERR. Employers should take a strict ‘line by line’ approach to ensure that the form and content of a NERR is the same as the prescribed form and any information the employer is required to insert is correct. Do not include any other information in the form, only insert the details the form asks to be inserted.

Do not staple or attach the NERR to any other documents. To limit the chance for accidental errors we recommend that employers consider sending the NERR out to employees alone and not including any other information at all. If an employer wants to send information to employees send this as a separate communication.

If you would like further information or assistance, please contact Stephen Kemp or Renae Harding in the Workplace Relations and Safety team at Jackson McDonald.

1

Peabody Moorevale Pty Ltd v CFMEU [2014] FWCFB 2042 at [46]

2

DP World Melbourne Limited [2016] FWC 386; DP World Melbourne Limited [2016] FWC 385.

3

Ibid at [12].

30 UPDATES industrial relations J U LY / A U G U S T 2 0 1 6

Builders must know union right of entry ROLLIN’, ROLLIN’, ROLLIN’ Aggrieved owner driver truckies are looking at legal action claiming up to $100 million in damages from the Federal Government as a result of lost income due to the previous Labor Government’s disastrous Road Safety Remuneration Tribunal. Despite knowing this, the Federal Labor Opposition argued the Tribunal was useful. A curious KPI that!

POT AND KETTLE? CFMEU(Victoria) secretary John Setka labelled the Coalition Government as Nazis in the lead up to the federal election and was strongly condemned by all sides for his intemperate comments. “Which group’s leadership wears black shirts, holds mass rallies and has large red flags at those mass rallies?” queried one IR commentator.

RALLY ROUND THE FLAG About 40 so-called adult Queensland construction union members took unlawful strike action on a construction site because the builder took down the union site flag. Such juvenile behaviour belongs in the dustbin of history not the twenty-first century workplace. What were they thinking?

A recent Federal Court decision has highlighted just how pedantic a builder must be when dealing with union officials wanting to enter a construction site.

The Court found two CFMEU officials were not entering site under the Fair Work Act union right of entry provisions as they were only on site, as the officials said, “to have a look around”. This is farcical as the two officials were wearing union tagged clothing, were employed as union officials and stopped a concrete pour at great cost on the grounds of alleged unsafe work which was very questionable given the facts. The Court’s reasoning was the officials were, in essence, visitors to site as site management had not requested them to produce their right of entry permits when on site or directed them to leave site. Fair Work Building and Construction is considering appealing the decision, a move which Master Builders endorses.

PAWTERNITY LEAVE? An international insurance company reported some UK employees take “pawternity leave” to look after their sick pets. Believe it or not, some activists want pet owner family leave as an employment condition claiming the absence of this leave is a form of discrimination.

IT WASN’T US, IT WAS THEM! The ETU in Queensland pointed the finger at the Turnbull Government blaming it for the union taking strike action over not getting the union’s way in negotiations with an employer. It appears the Queensland construction unions prefer to conduct themselves more like kids in a school yard.

YOU ARE OUT BUT GET PAID The decision reaffirms Master Builders’ long-standing advice to commercial builders when confronted with a request by union officials to enter site under the Fair Work Act. The advice is that, to avoid a similar outcome to the recent Federal Court decision, site management must require the officials produce their state and federal union right of entry permits before entering site as required by the industrial relations legislation. Such a request in the first instance will avoid any union claim that, as management did not require the right of entry permits to be produced, the union’s officials were ‘invited’ on site as ‘visitors’ by the site management.

In the absence of such a request by site management, the concept of silence being approval for the union officials to be on site may apply. As nonsensical as it seems, this was the theme of the Court’s reasoning, though another Federal Court decision some years ago dismissed a similar union defence making the most recent case all the more curious.

Union right of entry in the construction sector is a very contentious issue. Master Builders can assist contractors to navigate their way through this unnecessarily complex issue. Contact construction director Kim Richardson on 9476 9800 for help

The Fair Work Commission found an employer had good reason to dismiss an employee for abusive and obnoxious language. However, the employer did not follow the correct process when dismissing the employee so it was unfair and awarded $840.00 to the employee. This decision and many like it demonstrate just what is so wrong with the unfair dismissal provisions.

FWC’S MIXED MESSAGES In another odd decision, the FWC found a bus company legitimately sacked a bus driver found using his mobile phone twice while driving a bus on a freeway with passengers on board but then found the employer unfairly dismissed the driver and ordered his reinstatement with pay. Endorsing dangerous driving is not what the FWC ought be doing.

CFMEU CRIES FOUL The national CFMEU called for an apprentice quota on all federal funded construction projects in the run up to the federal election. This is the same union that jacked up first and second year apprentice wage rates to unsustainable levels with the assistance of the former federal Labor Government then washed its hands of the outcome of its ill-advised decision.

insurance UPDATES 31 J U LY / A U G U S T 2 0 1 6

Professional Indemnity Insurance – are you getting the right advice?

MBA Insurance Services’ state manager

Nick Vernon We’ve previously published articles regarding Professional Indemnity insurance (PI) as the risks to builders entering into design and construct (D&C) contracts often are not recognised and understood.

What makes it all the more concerning, is that the advice being given by some insurance brokers, who are supposed to understand builders’ risks, is inaccurate in relation to how the ‘outsourcing’ of this aspect of the contract is treated by the Courts. Some builders are being advised that PI insurance is not required if the design aspect is being outsourced or signed off by an external party. That is not totally correct.

Let’s look at a real life example.

A very large builder signed a D&C contract with a principal. The design component was 100 per cent outsourced to another party. Several months after the commencement of the project, it became clear that the design was faulty, resulting in ongoing losses that are now well into the millions of dollars. The failure happened years ago and rectification is still ongoing.

Millions of dollars have been spent to (1) mitigate the loss and (2) rectify the failure. The party responsible for the design (remember this was outsourced by the builder) isn’t taking responsibility for the issue, so no rectification work has been done by the design contractor nor has any compensation been paid to the builder for the faulty design.

So who is at fault? The entire design was outsourced, so the design contractor (and the design contractor’s insurance) should respond – correct? In theory, yes, but what if they don’t? What if they deny liability, or don’t have the correct insurance in place, have used up the limit of their liability, or they’ve since gone into administration? The legal proceedings to recover from the design contractor could take years and even then, the full amount may never be recovered (if anything is recovered at all).

What happens in the meantime? Is the principal going to wait while the builder takes the design contractor to court? Does the project go on hold indefinitely while this is dragged through the courts? The answer to that is clear. The principal wants its project completed on time and in accordance with its requirements.

In this example above, what’s happening in the meantime is exactly that. The principal doesn’t care that the builder outsourced the design.

Its contract to design and construct the building is with the builder, not the design contractor. The principal wants its building finished and the builder has to finish it or be in breach of contract. This means all the mitigation and re-design works are at the expense of the builder.

‘Step in’ the builder’s PI insurer. While the builder did not do the design, it is responsible for the design under the contract, making it responsible for design faults and rectification of those faults. Fortunately, the builder’s insurer has granted indemnity, and direct costs associated with the failure and rectification are being paid.

Several lessons come out of this example.

• It’s essential to always check that your external consultants, designers, engineers, etc have PI insurance. If there is a design issue, the first port of call will be an action against the consultant and hopefully it (and/or its insurance policy) will respond. But it is critical that when signing D&C contracts, builders must hold PI insurance to protect themselves from claims such as in the example above.

• Is your broker one of those advising you that you don’t need PI insurance?

If so, you should consider the advice you’re receiving carefully, as the above example shows you could be putting your business at serious risk.

• Further, it is critical that the right PI policy is put in place with the correct extensions and endorsements. Some PI policies will not respond to the builder’s claim for mitigation and rectification costs.

At MBA Insurance Services, we manage the insurances of more than 8000 builders and construction related businesses. We know the risks to your business and can guide you through the complicated area of risk management and insurance. Make sure you are getting the right advice.

We can be contacted on 9486 9898.

32 UPDATES legal J U LY / A U G U S T 2 0 1 6

Unfair contract terms: prepare now for new legislation

Basil Georgiou

Isla McRobbie

Matthew Lang

Unfair contract terms provisions will apply to standard form “small business contracts” entered into, on, or after 12 November this year and contracts that are renewed, or varied after that date.

A small business contract is a contract where: 1. At least one party is a business employing fewer than 20 people; and 2. The upfront price payable under the contract does not exceed either $300,000 or $1 million if the contract is for more than 12 months.

Businesses will need to review and possibly amend their standard form contracts to ensure they remain fully enforceable.

What do you need to know?

• Do you have fewer than 20 full time employees?

• Do you enter into contracts where there is little or no room to negotiate?

• Do you require your small business subcontractors to enter into contracts with little, if any, scope for negotiation?

If you answered yes to any of the above, then you should consider: • If you, or the parties you enter into contracts with, might fall within the scope of unfair contract terms protections for small businesses;

• Whether terms in your subcontracts may be considered to be “unfair”, in which case they could be declared void and of no effect.

New law has the potential to impact on construction industry contracts, such as those for the supply of goods and/or services, consultancy agreements, hire agreements and other procurement contracts.

What is the new law?

The Treasury Legislation Amendment (Small Business and Unfair Contract Terms) Bill 2015 extends the consumer “unfair contract terms” protections to small businesses and takes effect on 12 November.

Since 2010, a term of a “standard form contract” with a “consumer” (a consumer contract) could be declared void if it was found to be “unfair” – this includes (potentially) residential standard form construction contracts issued by industry or any other bodies.

The new law amends the Australian Securities and Investments Act 2001 and the Australian Consumer Law so that these protections also apply to “small business” and “small business contracts” (not just to consumer contracts). Under the new law, a Court will be able to declare that an

legal UPDATES 33 J U LY / A U G U S T 2 0 1 6

“unfair” term in a standard form “small business contract” is void. As with the existing consumer protections, the contract will continue to bind the parties, if it can continue to operate without the unfair term. If the contract cannot operate without the term, then it may be void entirely.

Does this apply to your contracts?

It could – a “small business contract” is a standard form contract where, at the time it is entered into: • At least one party is a “business” that employs fewer than 20 persons (a “small business”); and • The “upfront price” payable under the contract does not exceed either $300,000 or $1 million if the contract is for more than 12 months.

When calculating the number of employees of a business, each full-time and part-time employee should be counted as one person. Casual employees are to be counted only if they are employed on a regular and systematic basis.

If you are a builder or contractor that enters into standard form contracts with small business subcontractors or suppliers (such as bricklayers, plumbers, carpenters, plasterers, etc) then the new law will likely apply to those contracts (subject to the threshold limits).

In determining whether a contract is a “standard form contract” a court may consider any matter, but will take into account the following: • Whether one of the parties has all or most of the bargaining power relating to the transaction.

• Whether the contract was prepared by one party before any discussion relating to the transaction occurred.

• Whether one party was required, in effect, to either accept or reject the terms of the contract (excluding the upfront price payable); and • Whether the terms of the contract take into account the specific characteristics of another party or particular transaction.

Does the new law impact your existing contracts?

The new law applies to contracts entered into on or after 12 November and contracts that are renewed or varied after that date.

What terms might be “unfair”?

The concept of “unfair” contract terms is not new. At common law, it always has been open to an aggrieved party to argue that a term of a contract is unconscionable and therefore void. Under the legislation a term is “unfair” if it: • Would cause a significant imbalance in the parties’ rights and obligations arising under the contract; and • Is not reasonably necessary to protect the legitimate interests of the party who would be advantaged by the term; and • Would cause detriment to a party if it were to be applied or relied on.

In considering whether a term in a contract is unfair, a court will look at how transparent the term is (whether it is expressed in plain language, legible, presented clearly and readily available) and the overall rights and obligations of each party to the contract.

It is not clear what terms in standard form construction contracts might be considered to be “unfair”. Depending upon the circumstances, they could include: • Short time bars (e.g. 24 or 48 hours) on claims for variations, extensions of time or other claims.

• Termination for convenience clauses (particularly where the subcontractor is left “out of pocket”).

• Terms entitling a superintendent or principal to make unilateral assessments or determinations as to a subcontractor’s entitlement.

• Excessive or punitive consequences for default (e.g. default interest rates, penalty fees).

• One party being entitled to unilaterally vary essential terms (e.g. price, payment terms) without giving the other party a termination right.

• The exclusion of certain remedies for default.

• A party being liable for things that are outside its control or which do not arise from its breach of contract or duty of care (e.g. under an indemnity).

If a term in a standard form small business contract is found to be “unfair”, the term will be void; in other words, not binding on the parties. If the balance of a contract can continue to operate without the unfair term, then the contract will otherwise remain binding on the parties. If a party attempts to enforce a term that is declared to be “unfair” then consequences can apply, including court awarded compensation to the affected party.

So what should you do?

Builders and contractors entering into contracts with small businesses should: • Identify when they are dealing with a small business and a small business contract (in which case, the new law will apply); and • Review standard form contracts to identify and consider revising terms which are at risk of being “unfair” and void under the new law.

The new law could impact contractors seeking to “back to back” obligations down the contracting chain. While the head contractor/head contract might not fall within the scope of the legislation, contracts with subcontractors might be covered by the law. As a result, it is possible that a term validly imposed at the head contract level might be considered to be “unfair” if applied down the chain at the small business subcontractor level (although it might be argued that such term is necessary in the subcontract to protect a legitimate commercial interest). This risk will need to be considered and managed or priced accordingly by contractors.

If your business satisfies the test for a small business and you enter into standard form contracts on what is substantially a take it or leave it basis, and the contracts also satisfy the threshold requirements (i.e. under $300,000 or under $1 million with a duration of more than 12 months), then you should consider whether the contracts you enter into, renew or amend after 12 November might contain terms that could be said to be “unfair” and whether such terms can be challenged.

It might be that the new law will encourage a party relying on an “unfair” term in a standard form contract to negotiate an outcome with a small business, in circumstances where it might otherwise have no interest, or incentive, to do so.

Similarly, a small business might be able to argue in the context of an adjudication application under the Construction Contracts Act that a particular term is “unfair” and should be treated as being void by an adjudicator.

Upcoming Training Jackson McDonald will be offering training sessions through Master Builders in the coming months on contracting and the potential operation of the unfair contract terms regime to assist builders, subcontractors and others in understanding and complying with the new law. Keep an eye out on the Master Builders’ training calendar for further details.

This article was prepared by Jackson McDonald partners Basil Georgiou and Isla McRobbie and special counsel Matthew Lang.

34 UPDATES legal J U LY / A U G U S T 2 0 1 6

Popular contracts updated Master Builders has brought out 2016 editions of its popular head contracts for use where the agreement between the builder and owner has no third party administering the contract on the client’s behalf.

Important changes in the Home Building Works contract HBW 2016, Residential Building Works contract RBW 2016, Medium Works Contract MWC 2016 and Cost Plus contract CP 2016, include better management where the owner wishes to carry out some of the work, a flexible approach to the time within which to commence the project, additional grounds for claiming extensions of time and clearer arrangements for final payment and handover after practical completion has been achieved.

Taking into account the time potentially needed to finalise the actual costs in a cost plus contract, CP 2016 now has a process for an interim claim at practical completion and a final claim at or before the end of the defects liability period.

HBW 2016 includes a new provisions relating to the builder’s right to terminate if the owner fails to provide the requisite written variation, and new payment claim subclauses making it clear that minor omissions are

not grounds for disputing that a stage is complete and that stage claims can be made out of sequence if circumstances dictate.

All the new editions now deal with latent conditions, provide for service of notices by email and strengthen the security provision by spelling out the builder’s right to lodge an absolute caveat.

The contracts are available to be completed online at Master Builders’ website. Incomplete contracts are saved and can be downloaded as drafts for convenient consultation with clients. Once the contract is finalised and purchased, it can be downloaded for printing. Builders can include their company logos on the cover.

A tab on the online contracts web page will provide a summary of the main changes between the 2014 and 2016 editions of the contracts.

Hard copies continue to be available for purchase from Master Builders.

The changes summary will be enclosed with hard copies for a period of time, allowing users to familiarise themselves with the updates.

health UPDATES 35 J U LY / A U G U S T 2 0 1 6

Workplace health champions – we need you!

Behind every great workplace health and wellbeing program is a Workplace Health Champion – inspiring colleagues to take part in workplace activities, providing leadership and information and supporting them to make healthier choices.

Workplace Health Champions come in all shapes and sizes - meaning anybody within the workplace who is passionate and committed about creating a healthier workplace for colleagues can take on the role.

If your workplace doesn’t have a health and wellbeing program, identifying a champion is an important first step in the journey and one which we can help you with.

Healthier Workplace WA Program Manager Natalie Quinn says many undiscovered champions feel they are facing a big hurdle in accessing information, creating a business-case and gaining management support to bring about change in the workplace.

Healthier Workplace WA’s personalised approach to advice and support combined with an evidence-based Plan Do Review guide provides all the necessary information and tools to empower champions to kickstart a successful health and wellbeing program.

In workplaces that do have a dedicated health and wellbeing coordinator, the champion is still important in providing a link between staff and the coordinator. Among many things, a workplace health champion can: • Organise physical activity or information sessions.

• Lead a particular activity, like a lunchtime walking group.

• Talk to workmates about planned activities and motivate them to take part.

• Find out what workmates are enthusiastic about and pass feedback on to decision-makers.

• Encourage decision makers to consider healthy workplace initiatives.

• Access tools and resources and display in common areas, for example, information on quit smoking courses or local bike and walk trails.

The benefits to the workplace of having a health champion are obvious but there are also benefits for the person taking on this role, including making a difference to your colleague’s health, inspiring others and a chance to learn new skills.

Healthier Workplace WA has made its services free and easily accessible to workplaces with: • Online training, webinars and lunch ‘n’ learns.

• Telephone and email support.

• Online tools and resources.

• Expert advice, information and support on workplace catering, active commuting, quit smoking courses and alcohol-related issues in the workplace.

• Face-to-face training sessions.

Heart Foundation WA’s director of cardiovascular health Trevor Shilton says there are many positive health and productivity outcomes gained by workplace health initiatives.

“Latest statistics show healthy workers are up to 29 per cent more productive and can take almost 21 per cent fewer sick days each year,” he said. “Not only is it great for individuals, it makes business sense to consider workplace health programs.”

For more information about investing in the health of your workplace, best practice workplace health and wellbeing strategies, and the steps involved in the program call Healthier Workplace WA on 1300 550 271 or visit www.healthierworkplacewa.com.au.

Delivered by the Heart Foundation WA in conjunction with Cancer Council WA, Healthier Workplace WA supports workplaces across WA to make positive lifestyle changes that benefit everyone.

Workplaces that have an existing workplace health and wellbeing program can apply for recognition by visiting www.healthierworkplacewa.com.au/get-recognised to gain formal recognition with the Recognised Healthy Workplace Program.

36 UPDATES health J U LY / A U G U S T 2 0 1 6

Facts about methamphetamine There has been an increasing concern about methamphetamine in Australia. However, there seems to be a lack of understanding around the risks and harms associated with it.

According to the Medical Journal of Australia, there are 268,000 regular and dependent methamphetamine users in Australia. The number of users in the 15 to 24 age group has also doubled from 21,000 to 59,000 in five years.

Methamphetamine belongs to the ‘stimulant’ class of drugs. These drugs stimulate the brain and central nervous system, resulting in an increase in alertness and physical activity.

Methamphetamine takes effect quickly. Depending on the amount one consumes, the effect can last between four to 12 hours, and can take one to two days for the drug to completely leave the body. Long term and heavy use of methamphetamine can cause damage to the brain receptors and leads to individuals no longer feeling normal without having methamphetamine in their system.

Below are some risks and harms associated with using methamphetamine.

Coming down from Methamphetamine Some immediate effects from methamphetamine include: • Impaired decision-making ability • Poor concentration • Difficulty planning • Headaches, blurred vision, hunger • Flat affect, depression, anxiety • Exhaustion • Interrupted sleep • Irritability • Mild psychotic symptoms, paranoia, hallucinations • Symptoms of withdrawal if they are dependent on it

Methamphetamine withdrawal This can last longer than the ‘come down’, often lasting a few weeks, and effects include mood swings and irritability, strong cravings, changes in appetite, disturbed sleep patterns, depression and fatigue.

Minimising harms – three Fs Some of the most helpful things a person can do while recovering from short-term or long-term effects of methamphetamine are to have a good diet, drink plenty of fluids and get plenty of rest.

Food: Stimulants suppress appetite. It is very important that good nutrition is maintained. Fuel your body by eating a balanced diet. Drink milk, protein drinks, shakes or smoothies if solid foods are hard to tolerate and consider multivitamins.

Fluids: Ensure adequate hydration by drinking plenty of water.

Forty Winks: Make sure to get plenty of rest. Going more than two nights without sleep is not good for anyone.

To minimise potential harms from methamphetamine use, encourage people to get help and support, and ensure the provision of appropriate evidence based care. It is also critically important to not stigmatise drug use. If you are concerned about your own or someone else’s problematic use of alcohol and/or drugs, talk to someone about it.

Holyoake offers a range of customised programs for people who are affected by substance misuse – directly or indirectly. Call 9416 4444, email clientservices@holyoake.org.au or visit www.holyoake.org.au for more details.

HOLYOAKE FAMILY • INDIVIDUALS • YOUTH

health UPDATES 37 J U LY / A U G U S T 2 0 1 6

Local ambassadors put prostate cancer back on agenda

PCFA’s ambassador speakers.

The Prostate Cancer Foundation of Australia is reminding the construction industry to take advantage of their Prostate Cancer Ambassador Speaker program, a workplace education program that provides important information about prostate cancer PCFA’s National Ambassador Program features trained speakers who specialise in engaging workplaces, community groups and other organisations about the importance of prostate cancer awareness. They also highlight the resources available from PCFA for men and their families dealing with prostate cancer.

WA has several trained speakers available to come to workplaces and educate staff about the disease. The program was revamped in late 2012 with updated presentations focusing on prevention and early detection, treatment options and challenges and necessary knowledge for partners and carers of men diagnosed with the disease. Each presentation runs for approximately 15-20 minutes, with additional time allotted for questions.

In 2015 Prostate Cancer Toolbox Talks also were developed, designed for a 10-12-minute slot to fit in with a company’s existing Tool Box talk program.

PCFA Ambassadors are prostate cancer survivors, carers and partners, and people interested in men’s health and supporting PCFA. Ambassadors often include elements of their own personal experience with prostate cancer to add meaning and impact to their talks.

Ambassador speakers also are entertaining and adapt to their audience and situation.

The Ambassador program is part of PCFA’s commitment to improving prostate cancer support and services in communities across Australia. All presentations have been reviewed by both a consumer and medical expert advisory panel, ensuring the content is factual and relevant.

According to WA State Manager Cate Harman, “Our speakers are keen to expand their community audience educating Western Australians on the disease, which kills more men than breast cancer does women every year. PCFA is proud to help provide this important community resource.”

To book a local Prostate Cancer Ambassador speaker, contact perth@pcfa.org.au or phone 9381 7444.

Protecting eyes when outdoors

Most of us wear sunglasses when we are outdoors to protect our eyes from the glare, but actually there are some other good reasons why you should be wearing protective glasses when you are outside.

For most of us, our vision is important to be able to perform our jobs and engage in leisure activities that we enjoy. But it is the very nature of vision that leaves us vulnerable to serious short-term and long-term damage from ultraviolet (UV) radiation, damage that can lead to blindness and even cancer of the eye.

Our eyes let in light, which allows us to see images and colours. The problem is, when letting in light, eyes also are letting in UV radiation which can cause serious damage to many parts of the eye including the eye surface, lens and retina.

Many of us would know someone who has suffered with cataracts, but what may not be as well known is that they are caused by the eye being overexposed to UV radiation. Likewise, it is common knowledge that welding without proper eye protection can cause a welders flash, a very painful but fortunately usually shortterm injury. What most people don’t realise is that this is actually caused by overexposure UV radiation created in the welding process, and this is the same type of UV radiation that is delivered from the sun. With welding, the UV exposure occurs in large quantities over a short time period, whereas from the sun we receive lesser quantities but much more regularly and over our entire lifetime.

This long-term exposure can cause many serious and at times blinding eye conditions including cancers on and around the eyeball.

However, this doesn’t have to be the case, as wearing good quality safety or sunglasses can provide protection from up to 99 per cent of UV radiation from the sun.

All sunglasses sold in Australia must meet the Australian Standard which states they must include some level of UV protection. However, there are different categories of protection, so

it is recommended you look for EPF 9 or 10, or lens categories 2, 3 or 4. Likewise, heavily tinted sunglasses might give good glare protection, but the level of tint gives no indication of the level of UV protection the glasses provide.

Design also plays in a part in eye protection, as larger frames that cover more of the eye, preferably that wrap around the side and sit close to the face are the best options for protecting against UV radiation. This style also provides the best protection from flying debris and impact, another workplace hazard that can cause serious and sometimes permanent damage to eyes.

Protecting eyes is as easy as getting some good quality safety or sunglasses that offer a high level of UV protection, and remembering to wear them whenever outdoors. Workwear stores offer a great range of inexpensive safety glasses that provide up to 99 per cent UV protection. Just this simple act could save your vision and protect your eyes from a variety of conditions, including cancers of the eye. To find out more about eye protection go to www.uvdaily.com.au or contact the Cancer Council at sunsmart@cancerwa.asn.au.

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WinBaC lunch takes a peek at State politics Guests at the mid-year lunch for Women in Building and Construction were treated to a look inside the life of a woman in business and politics.

In her keynote address, Deputy Premier Liza Harvey touched on her personal and professional journey. From business owner employing 50 people, to local member for Scarborough representing thousands, and then on to Deputy Premier in 2016, Mrs Harvey highlighted some of the challenges and achievements that have coloured her life.

Enjoying the sunshine and an aperitif, Austral Bricks were well represented at the WinBaC lunch.

She also highlighted some of the amazing innovations and successes of other women, and strategies now in place to steer more women into non-traditional roles, beginning with appropriate training.

On a different note, Mrs Harvey had some cautionary advice for small business owners, encouraging forethought in relation to income protection and the need to provide adequate superannuation for retirement.

Deputy Premier Liza Harvey (right) was guest speaker at the highly successful WinBaC mid-year lunch in June. She is pictured with (l-r) Anna Rechichi (Department of Finance), Master Builders’ membership services manager Veronica Mill, Carla Bradford (Cordell CoreLogic) and Astrid Vasile (GV Constructions).

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Connect to more As Master Builder members, you’re right to expect we’ll bring you more of the good stuff.

That’s why we’ve launched Master Builders Connect – a service that connects you to more exclusive offers and mates’ rates from Telstra.

No gimmicks, no confusion, just straight-talking, no-nonsense deals that give you all the features you want. More talk and text. More data. More flexibility. And more coverage. So why accept less when you can connect to more?

Go Full Monty Our Full Monty plan is packed with all the features you want, including unlimited talk and text, access to a range of handsets and a massive 5GB of data, for just $80 a month.

Plus, take advantage of data pooling, a free powerbank on sign-up and free two months’ credit when switching from another provider.

2. Get connected right from the comfort of your home or office – you don’t even need to leave your desk. Set up your plan over the phone and we’ll deliver it straight to your door!

3. With Master Builders Connect you get access to a dedicated Australian-based Helpdesk. When you ring you’ll be talking to someone located in Queensland and chances are, you’ll get to speak to the same person every time.

4. Being with Telstra means you’ll get the widest coverage available in Australia, allowing you to stay connected while on the job.

5. We deliver tailored, end-to-end solutions for businesses of all sizes – from small and medium businesses, right through to largescale enterprise operations – scaling up or down to meet your key objectives.

Call 1300 88 13 72 or visit mbconnect.com.au and connect to more.

Our top five reasons to connect with us: 1. Master Builders Connect specialises in plans for your industry, so you can rest assured that what you’re getting is tailored specifically to you.

Videos dominate on ‘new’ HOME in WA website The website of Master Builders’ television program HOME in WA has been re-designed with the videos the show produces for participating builders and clients now the new focal point.

Other HOME in WA innovations include filming in high definition, the addition of a new drone for aerials and an OZMO hand held camera to walk through homes to show a perspective from a ‘person point of view’.

Executive producer Ron (Dingo) Reddingius has been monitoring stats for his website over the last five years and it appears that client videos posted on the site now are getting repeat views more than ever before.

“These changes are totally enhancing the high production values which I and the team deliver to your story,” Mr Reddingius said. At time of writing Riverstone Custom Homes, Nexus Home Improvements, Atrium Homes, First Home Buyers Direct, New Choice Homes, Artique Homes, Empire Building Company, Nulook Homes, Genesis Master Builders, Ryan Cole and Aveling Homes have appeared on the show.

“A recent Master Builders’ story in episode one has now been seen again by over 125 viewers on the HOME in WA website,” Mr Reddingius says. “What does this mean for you if you join the HOME in WA TV series? You get access to this corporate video for ongoing website use.”

Mr Reddingius said that getting to viewers through TV exposure across WA previously had been what it was all about. Now, social media gave an added bonus as people Googled builders, services and products for their homes online.

To give it a go or to find out more, give Ron a call on 0417 279 103.

Master Builders welcomes new members Apricus Australia Balance Acoustic Solutions Pty Ltd Balance Commercial Fit Outs Pty Ltd Bella Build & Design Cable Beach Ceilings Commodore Homes Complete My Home Dedicated Construction Pty Ltd Doret & Associates Envirotechnics Pest Management Floortech Freedom Outdoor & Shedsnhomes Bunbury Galvins Plumbing Suppliers Go 2 Group Pty Ltd Guardian Star Property Pty Ltd GVS Construction & Shop Fitting P/L HomeStart Impressions Integrated Construction Pty Ltd Iron Design Roofing (WA) Pty Ltd J-Corp Pty Ltd JCP Construction National Homes Now Living Pablo Segnini Architect Perceptions Piedra Pty Ltd Plumbtechnics Rawbuild WA Pty Ltd Rosemont Homes Simply Settlements Smoothline Fences Stratawise Studio McQueen The Loan Company Vinci Construction & Developments WA Housing Centre Water Corporation

Member * Savings Scheme

Exclusive discount on regional accommodation

10% off daily accommodation rate

Hyatt Regency Hotel Perth is offering Master Builders members 10% off its Daily Accommodation Rate. To make a reservation phone 13 12 34 and ask for the ‘Master Builders Rate’ subject to availability. Join Club Hyatt for yearly membership at a discount of 10% for Master Builder members.

AC C O UN T I N G & TA X AT I ON

AC C OM M ODAT I ON

Master Builders Members can save through our growing Master Builders Member Savings Scheme.

Level 3, 35-37 Havelock Street West Perth WA 6005 p (08) 9476 9800 f (08) 9476 9801 w www.mbawa.com e mba@mbawa.com

Free personal financial strategy – valued at $990 Members can access a free review of their personal tax positions, including review of tax minimisation strategies, and the use of SelfManaged Superannuation Funds. Also includes a free financial services consultation to review financial and retirement planning.

Members have access to an exclusive discount on accommodation at Oaks Broome and Oaks Cable Beach Sanctuary. Visit Master Builders website for details.

Members are also entitled to a free subscription to RSM’s electronic newsletters, SME Pathways and Financial Insight.

To redeem this offer, please call David Johnston 9261 9486 or email david.johnston@rsmi.com.au

FUE L

BAN K I N G

Principal Partner

http://www.mbawa.com/member-savings/ I N SUR A N C E

http://www.mbawa.com/member-savings/

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Secure competitive insurances with a construction sector specialist

Help Apprentices with every loan taken out

Save 55% on your monthly fees with a Caltex StarCard

Bankwest business banking has lots of choices for business finance for members. For every home or business loan through Bankwest a % will be put back in to the Apprentiship and career promotion.

Contact Brad Smith, Senior Relationship Manager for Commercial Banking on 0467 786 813 for more information. For discount home loan rates and product features, speak to Bankwest representative, Lisa Hutchins on 0467 807 662.

You might not care how long it takes to record your fuel receipts, but someone in your business does!

Do them a favour - get a fuel card that gives you one easy to read, ATO approved monthly invoice.

Plus, if you sign up under Master Builders’ account you’ll save 55% on your monthly fees, and receive a 3.5c/ litre discount on unleaded petrol and 4c/ litre discount on diesel petrol. Whether you have two vehicles or 200, there’s a Caltex StarCard to suit your needs. Visit our website for more information.

Secure competitive insurances with a construction sector specialist, MBA Insurance Services. Using its construction market leverage, benefit from attractive premium pricing and better policy terms for your business and personal insurances. A strong service is part of this broker’s commitment to Master Builders members. Contact MBAIS now on 1800 150 888 to discuss your premiums and insurance needs.

www.bankwest.com.au

www.mbawa.com/member-savings

www.mbais.com.au

REC RUI T M EN T

M OT OR VEH I C L ES www.easifleet.com.au

T EL EC O M M UN I C AT I O N

www.jacmac.com.au

Exclusive range of products with genuine discounts

OfficeMax is offering Master Builders members 10-25% off the standard price of many popular office and stationery items. By buying through Master Builders, you will enjoy the benefits of combined purchasing pricing for the extensive range offered by OfficeMax. For further information please phone Bronwyn NicolaasPonder on mobile 0488 625 234 or email bronwyn.nicolaas-ponder@officemax.com.au

Master Builders Connect has teamed up with Telstra to offer members more of the good stuff at exclusive rates. No gimmicks. No confusion.

Just straight-talking, no-nonsense deals that give you all the features you want. More talk & text.

More data. More flexibility. And more coverage.

So why accept less when you can connect to more? For more information, call 1300 88 13 72, email service@mbconnect.com.au or head to www.mbconnect.com.au

www.officemax.com.au

www.mbawa.com/member-savings

For all your recruitment needs, talk to the world leading specialist recruitment company and enjoy a 10% discount from their standard terms of business. Contact Mark Pitt (Labour hire) (08) 9259 4513, Danielle Middleton (Commercial Building) (08) 9486 9553 or Bronnie Cave (Office Support) on (08) 9322 5383.

www.hays.com.au

T V PR O M O T I O N

LEGA L H OT LI N E

easifleet is the expert in private and corporate vehicle solutions. Their extensive buying power allows them to purchase vehicles at the lowest fleet prices. While these fleet discount prices are usually reserved for private salary packaging customers, easifleet is partnering with Master Builders to offer access to huge savings when purchasing or leasing your next vehicle. They can also offer an ongoing discounted finance rate if finance is required. Better yet, they can source your vehicle, liaise with the dealer and organise settlement and delivery free of charge.

STAT I O N E RY

Jackson McDonald/Master Builders Legal Hotline offer up to 15 minutes of immediate, free legal advice. The Hotline complements Master Builders’ ongoing services of standard form contracts, insurance products and safety training and auditing. When legal issues arise, the Hotline will offer quick and knowledgeable initial guidance. A 7% reduction on normal fee schedules also applies for members.

10% - 25% off the standard price of popular items

10% discount from their standard terms of business

Save thousands on Fleet pricing

7% reduction on normal fee schedules

$400 discount when purchasing a 3 minute advertorial production Home in WA is the Master Builders’ very own TV series and is into its 15th series! Members can receive a $400 discount when they purchase a 3 minute advertorial production. Your business will get state-wide TV coverage, on both GWN7 regional and Channel 7 in the metro area.

This year, you will also be supplied with a free advertorial production YouTube link to post on your website! Phone Ron (Dingo) Reddingius on 0417 279 103 or (08) 9246 5442 or watch the show on the website. www.homeinwa.com.au

* Scheme participants will generally require proof of membership through our membership card or other verification. We remind members that all benefits are subject to terms and conditions specified by the service provider and may be withdrawn at any time. It is recommended that you contact the service provider advertised to confirm the most recent offer available.

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Noel Abercromby has been re-elected national president of Master Plumbers Australia.

Deepest sympathy to Stephen Kemp (Jackson McDonald) on the loss of his brother.

Congratulations to Grant Rodoreda (Jackson McDonald) who announced his engagement on the same day as his thirtieth birthday in April.

The Brian Burke Homes Group has launched a new brand in Refined Edge Homes to target the $600,000-$1.2 million housing market. Brian Burke Homes will focus on homes valued at $1.5 million and above.

The Australian Institute of Building has appointed Greg Hughes as CEO. Norman Faifer has been elected national president while Graham Teede from WA is vice president.

Rider Levett Bucknall has appointed Mark Bendotti as managing director following Alastair McMichael’s retirement after 30 years’ service.

Cheerio to David Mexsom, a former chairman of Master Builders’ Great Southern Branch, who is recovering from cardiac surgery.

Jennifer Cunich has been appointed national CEO of the Australian Institute of Architects, replacing Greg Ridder as interim CEO. Ken Maher has been elected national president.

MATES in Construction has appointed Chrissie Fearon as operations manager in WA. Congratulations to Nadia and Craig Butler (VPG, Master Builders’ property manager) on the safe arrival of Keaton, brother to Baxter, in April.

Ian Glen has succeeded Alan Walters as president of the Master Painters and Decorators Australia Association in WA. Cheerio to Geoff Crothers from Geraldton who is recovering from a heart attack in April.

Congratulations to John Mitchell (Universal Constructions) on joining the ranks of octogenarians.

The Australian Institute of Management has elected Dr Alison Gaines as president in WA. Brookfield Multiplex WA state manager Chris Palandri has been elected to the AIM board.

Condolences to the family and friends of Aaron Hind, the managing director of Hind’s Sand Supplies, who died in May. Aaron started with the company as a driver and progressed through the ranks to be managing director.

Tony Beech retired as Chief Commissioner of the WA Industrial Relations Commission in May after serving 28 years in the Commission, the last 12 as Chief.

Paula Rogers has been appointed state director for the Committee of Economic Development Australia.

She takes over from Liz Ritchie who has taken on a managerial role at Westpac.

Congratulations to Dee and Peter Bisby from Red Ink Homes on the safe arrival of their first son, Ben James.

Peter is chairman of Master Builders’ Geraldton Branch.

Ian Stoneman has been appointed chief executive officer of the Australian Brick and Blocklaying Training Foundation Ltd. Mr Stoneman, who previously was employed with Defence Force Recruiting, replaces Geoff Noble.

George Allingham sold his interest in Gransden Construction in May. The new owner of the business is Tim Lorian and the general manager is Robert Woodforde.

Dan Hutchins has been appointed as principal – risk advisory at RSM while Kim Hutchinson has retired as national chairman after many years. RSM is Master Builders’ auditor and business advisory partner.

Technical Resources has been awarded the Recruitment and Consulting Services Association Corporate Social Responsibility Award for 2016 at the annual gala ball held in Melbourne recently.

Well done to Jackson McDonald partner and head of the construction law team Basil Georgiou on his thirtieth anniversary with the fi rm in June.

Twenty up for plasterers Congratulations to Alex Jones (president) and his team at the WA Solid Plasterers Association on celebrating their twentieth anniversary in June. WASPA now has more than 60 members and is focussed on raising workmanship standards through training. Mr Jones is pictured welcoming one of the new solid plastering apprentices at South Metropolitan TAFE – formerly Polytechnic West and Challenger Institutes. Although numbers of apprentices have fallen in most building trades, the number of solid wall plastering apprentices is increasing.

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Master Builders’ housing director Jason Robertson.

PEN PORTRAIT: JASON ROBERTSON With the majority of Master Builder members operating in the residential industry, the Association’s housing director position has never been more important. Recently appointed to the role, Jason Robertson has quickly embraced his responsibilities and adopted a progressive approach to the Association’s housing sector policies and activities.

What were you doing before joining Master Builders?

My last position was at the Shire of Waroona, manager of development services, where I was responsible for building, environmental health, waste, emergency services, rangers and recreation services.

Why did you move?

The opportunity to work for the industry as a housing director presented itself, a position I simply couldn’t pass up. The role is dedicated to seeing good outcomes for industry which is both challenging and ultimately, very rewarding.

What lies ahead for you?

I’d say my role is akin to that of an ambassador. For me, that means continuing to represent all our members on any and all matters necessary.

When you’re not at Master Builders, what keeps you busy?

Spending time with my family; having three boys keeps me on my toes. I enjoy nature, bush-walking and camping. I also love to read, mostly crime fiction.

How long have you worked for Master Builders?

Six months.

How do you feel you’ve settled into your role?

I feel that I have settled into the role very well.

I am privileged to work with such a diverse, capable and committed team and being part of the Master Builders family.

What is it that you can offer?

My background as a building surveyor and extensive experience both in local government and the private sector, the ability to provide members with a very high level of technical expertise, legislative understanding and problem solving.

What would you say to individuals thinking about careers in the construction industry?

Being involved in the construction industry can be one of the most rewarding careers with so much diversity. It’s an industry where an individual really can positively impact upon, and enrich, the lives of others.

What interests you about the construction industry?

Seeing how it is possible to have methodologies that have stood, and will continue to stand, the test of time; along with the ability to adapt, including new innovations in design, products and implementation. That, and the passing of knowledge inter-generationally.

What are you working on now?

A primary focus area is on regulatory reform.

Housing affordability is another key issue that needs to be addressed and ‘new technology’ is also of great significance. These areas I am actively involved in, including research project work, advocacy and lobbying through to working with both State and National Housing Councils, to ensure our members have a strong voice, strategic direction and ultimately successful outcomes.

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Master Builders’ president Robert Spadaccini

SPADACCINI SETTLES INTO TOP JOB Taking on the premier Master Builders’ leadership position this year, Robert Spadaccini brings a wealth of building experience to the role. Here we get an insight into the fifty-third president of the Association.

How long have you been in the building industry?

I started in the industry at the tender age of 17, meaning I now have given 27 years of service to the building industry. I manage Spadaccini Homes which involves dealing with clients, suppliers and trades on a daily basis. Before becoming a builder, I worked as a building designer-estimator in a family business.

Was there anything in your background that you feel had an influence on the career path you took?

My father’s influence – he was in partnership with his brothers in Northam building residential and commercial buildings in the 70s, 80s and 90s Where and how did you learn your skills?

I studied for my builders’ registration at Leederville TAFE in the early 90s and learnt my practical skills by working on site with all applicable trades ranging from grano workers to painters.

What would you say most motivates you - what are you most excited or passionate about in this industry?

Motivation in itself keeps me going. I love what I do and that alone is all the passion and excitement I need to be successful. I haven’t had key mentors.

I always self-motivate.

What are the goals you most want to accomplish in your work?

Keeping clients happy and creating a safe and happy work environment.

Were there any significant turning points in your career? Were there any surprises?

Significant events were winning my first large contract in 2003, being awarded Master Builders’ Ric New Medal for Excellence in 2005 and being awarded WA Best New Builder in 2004.

Memorable experiences include winning WA Home of the Year in 2009 and Australian National Luxury Project Home $1 to $2 million 2012.

What has been the most difficult or challenging aspect in your work?

Dealing with changes such as GST, Indemnity Insurance, bush fire regulations and Council, to name a few.

What has been the most rewarding thing and what achievements are you are most proud of?

Handing over the keys to a newly built home and being thanked by the client for all your hard work is always rewarding. I am proud of being elected as Master Builders’ president. This gives me the ability to give back to the industry.

What advice would you give to someone embarking on a similar career in the building industry?

Be strong and get involved for the right reasons and never forget the building industry is not a perfect science.

When you think of the future of the building industry, what gives you a sense of hope and what makes you concerned?

Hope is gained by knowing we have Master Builders there to support our members and industry. Concerns are there when I think of my daughter and her generation… will there be work for them, are we training enough apprentices, will the planning process be more efficient, will the price of land and building be more affordable for our kids and what will the quality of work be like in the future?

What’s next for you in your work? What are you looking forward to?

In the current climate we need to batten down and watch spending. I’m looking forward to the next wave of builders and maybe I can help mentor them and guide them through difficult times.

safety UPDATES 45 J U LY / A U G U S T 2 0 1 6

Safety systems – are they working?

A recent meeting between Federal Safety Commissioner Alan Edwards and Master Builders’ construction director Kim Richardson and safety manager Michael Fitzgerald covered a wide range of issues relating to safety in the construction industry.

Commissioner Edwards advised that a recent survey of FSC accredited builders revealed an improvement in the acceptance of the Federal Safety Accreditation scheme with more than 90 per cent of those surveyed indicating the scheme had improved safety standards and the cost of accreditation was reasonable when balanced against the beneficial outcomes.

Changes to the scheme over the past few years have clearly been well accepted.

Federal Safety Commissioner Alan Edwards (right) is pictured with Master Builders’ safety manager Michael Fitzgerald after their recent meeting.

Audit processes also were discussed, issues being that audits have become a ‘tick and flick’ exercise and are not as useful as intended.

Auditees being notified of upcoming planned audits also was covered. It was suggested that a process of basic random audits/inspections be investigated to assess if this would be a more positive step.

Although there is no obligation for most builders to have an accredited safety management system in place, it is a requirement under the WA OSH Regulations that all main contractors have policies and procedures in place to ensure a safe workplace. In many cases this means a documented safety management system.

There are many occasions where an employer has clearly identified safe work practices that fall short in the workplace. For example, we all know milk crates are not working platforms and do not belong on worksites yet we often see workers using them as working platforms. Employers have a responsibility to ensure these sorts of unsafe work practices are addressed in a timely manner. It is not sufficient simply to have a policy that prohibits an activity or to tell workers not to do something. There must be systems in place to police the policy/procedures and address transgressions when identified.

What should contractors do?

Contractors should consider the following questions.

• Do you have clear safety policies and procedures in place?

• Do you need a fully documented safety management system?

• Have you regularly reviewed and updated your safety system?

• Are your policies and procedures understood by your employees and subcontractors?

Milk crate mayhem: this photo, taken recently on a building site, amply demonstrates the disregard for proper workplace safety shown by the brickies. A plasterer also was observed working on two stacked milk crates.

• What systems do you have in place to ensure workers comply with agreed safe work practices?

• Do you have the resources to manage safety as required by the WA OSH Act and Regulations?

Master Builders has the resources and expertise to assist contractors to manage safety through the following services: • Development of safety management systems and site safety plans relative to your organisation.

• Reviews and updates of your current systems.

• Safety audits.

• Site safety inspections.

• Mentoring programs for site supervisors and managers.

In addition, Master Builders also can manage your safety system for you by developing your safety management systems, conducting audits and inspections, providing reports and advice back to you and your workers, making recommendations for improvements –

a complete package that allows you to meet your OSH obligations without the need for full time safety personnel.

Why use Master Builders’ safety services?

Master Builders’ safety manager Michael Fitzgerald has more than 30 years’ hard won expertise and knowledge of workplace safety and can provide cut-through, practical, user friendly safety advice for building contractors.

The audit service applies a mentor approach, assisting site supervisors understand why safety systems are in place and what benefits follow in reduced injury rates, improved productivity and reduced workers’ compensation premiums. This service sets Master Builders’ safety services apart from, and above, other service providers.

Contact safety manager Michael Fitzgerald on 9476 9800 or email safety@mbawa.com for further information or advice on your safety management obligations.

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Changes for Bush Fire Prone Areas map The transition period related to updated bush fire construction requirements is well advanced.

The Map of Bush Fire Prone Areas 2016 became available from the Department of Fire and Emergency Services’ website on 20 May. The designation of bush fire prone areas shown on the updated map came into effect on 21 May. The Building Regulations provide a four-month transition period, that is, a 21 September start, for the application of BCA bush fire construction requirements for the newly identified areas.

The May map is an update from the previous version made available on 8 December last year. Pink shading on the updated map shows the previously designated areas and the new areas are in a blue cross-hatch overlay.

Any building application lodged for a building permit from 21 September for lots in the updated designated bush fire prone areas must meet the BCA requirements. To view the map, visit the DFES website: www.dfes.wa.gov.au/bushfireproneareas.

Master Builder leads in energy efficient building The two-storey success story is the result of a collaborative effort between the couple, structural engineer Joe Car and builder Tulloch who completed his apprenticeship with Master Builders in 1983.

“It is always an exciting opportunity to be involved in projects that are moving the building industry forward in the way of environmentally sustainable practices,” Mr Tulloch says. “We worked closely with the Lim family who placed importance on creating a space that incorporated materials that demonstrate both space and energy efficiency. Sourcing products with energy efficient functions was therefore vital and incorporating Bondor products to create this well insulated home significantly contributed to the home energy rating.”

The home combines Bondor’s Equitilt wall panelling and SolarSpan roof sheeting, which demonstrate high thermal performance exceeding the Building Code of Australia’s current six-star thermal efficiency requirement.

The Lim energy efficient house built by Master Builder member Tulloch Construction.

Master Builders Great Southern member Tulloch Construction has teamed up with James Hardie Australia and Bondor to build a home that exceeds the current six-star rating, had very little site waste and a quick eight-month construction time.

Architect Bernard Lim and his wife Melissa, an architectural graduate, approached Andrew Tulloch about building their dream home having come up with a sustainable design for a 360 square metre block using unusual materials, including a concrete product commonly used for wheat silos.

Insulated concrete walls with an exposed concrete finish have been used on the ground floor. A mix of smooth and textured finishes enhances the modern-meets-robust feel. An insulated foam sandwich wall and roof panel with metal cladding have a metallic finish that changes in appearance depending on the location of the sun.

Translucent insulated polycarbonate panels, manufactured in WA, form a surprising but stunning feature. Typically used as an alfresco skylight material, the panels allow light to stream through the sections of the home where it has been installed in the walls, particularly in the open plan living and dining area.

For the first time in Australia, James Hardie Australia acoustic flooring product Scyon ‘Secura Sound’ has been used on the first level floor to assist in reducing noise within the home. It has a high acoustic performance rating and limits sound transfer.

technical UPDATES 47 J U LY / A U G U S T 2 0 1 6

Openable windows require Code compliance for safety

Master Builders’ technical consultant,

Romina De Santis Since 2013, the Building Code of Australia (volumes 1 and 2 of the National Construction Code) has acknowledged that openable windows may constitute a safety risk where the floor level below the window is two metres or more above the surface level outside.

Master Builders’ technical consultant Romina De Santis has found the following information, largely produced by the Australian Window Association, provides helpful guidance in addressing the risk.

The intent of the BCA provisions is to limit the risk of a person (especially a young child) falling through an openable window. The provisions affect windows in bedrooms of Class 1, 2, 3 and 4 buildings and any room in Class 9b early child care centres. WA had a transitional period of 12 months for the adoption of the 2013 BCA, so depending on the Building Standard under which the home or development was assessed (BCA 2012 or BCA 2013), the clause may or may not have been applicable until 1 May 2014.

The Australian Window Association reports receiving enquiries from builders, certifiers and the public relating to restricted openings and fall prevention from openable windows on a daily basis, and has seen a significant rise in this type of enquiry to the point where the issue

now accounts for nearly one in every five enquiries received. The AWA also has seen a marked increase in the number of complaints and an increase in evidence of non-compliant and untested products being supplied to the market.

It says that of particular concern is the practice of fitting restricting devices which are not adequate to resist the 250 newton force requirement of the NCC. The restricting devices must be capable of limiting any twist, bow or flex in the window so that at no point can a 125 millimetre sphere pass through.

The AWA says it is important to note that it is the responsibility of the person fitting the device or screen to certify that it meets the NCC requirements and provide evidence that the windows or screens are compliant. The Association’s technical subcommittee has developed a method of testing which is published as an Industry Code of Practice ICP 005 for use by its members to demonstrate compliance.

In respect of windows, devices or screens, builders are advised to request confirmation of compliance with the NCC requirements.

Without confirmation from the supplier/installer of the compliance of the installation, the builder, by virtue of the Notice of Completion, confirms compliance with the applicable building standard.

Source: AWA Industry Alert

48 UPDATES training J U LY / A U G U S T 2 0 1 6

Audit raises high risk training concerns

Master Builders’ training director,

Neil Du Rand.

The Training Accreditation Council has finalised its Strategic Industry Audit into 10 units of competency that lead to high risk licences in WA and its findings are of great concern.

The audit covered training for the licences to perform dogging, to perform rigging (basic, intermediate and advanced), to erect, alter and dismantle scaffolding (basic, intermediate and advanced), to operate boom-type elevating work platforms, to operate non-slewing mobile cranes greater than three tonnes capacity and to operate slewing mobile cranes over 100 tonnes.

Most of the industry believed that existing high risk work licence training and assessment practices were not sufficiently robust to ensure confidence in training and assessment outcomes. A number of concerns with high risk licence training were identified: • Allocations for training and assessment activities per learner were not sufficient to enable the learner to meet the requirements of the unit of competency.

• Assessment practices, including assessment against the unit of competency, were not meeting requirements of the Standards for Registered Training Organisations 2015 and legislative requirements underpinned by the Occupational Safety and Health Regulations 1996.

• Vocational competencies of trainers and assessors, marketing practices and use of third party arrangements.

In WA, 20 Registered Training Organisations were audited. The views of students and stakeholders, including a number of Master Builder members, were sought by means of surveys.

Audit findings of greatest concern include that more than half of those assessed, 55 per cent, had at least one non-compliance relating to the training. The portion of training providers audited with a level of significant or critical non-compliance was 35 per cent and 70 per cent of RTOs were non-compliant with one or more of the standards.

All RTO’s in the audit sample provided training to the building and construction industry. More than 20,000 new licences were issued in 2014/2015 for the 10 classes of licence relating to the strategic audit.

Not all of these relate to the construction industry but the conclusion which can be drawn is that possibly 11,000 people assessed as competent might not have met the assessment criteria.

Of those employers surveyed, an overwhelming 89.4 per cent supported the implementation of a set level of workplace experience at a basic level before an employee can obtain an intermediate licence and further workplace experience before progressing to an advanced licence.

What happens now?

TAC will undertake monitoring audits of all RTOs which offer high risk training within six months. Any new RTOs applying to offer high risk training will have a site audit and will be audited in the first 12 months.

Builders and employers can play an important role by reporting training they feel is of poor quality or where people holding high risk work licences are unable to demonstrate work at the required level.

Information can be reported to TAC on 9441 1910 or via email tac@des.wa.gov.au and all information is treated confidentially.

training UPDATES 49 J U LY / A U G U S T 2 0 1 6

Inaugural AIB Address in South Africa WA managing director Sam Delmenico was keen to support the AIB initiative and worked hard to secure the funding through the company. It continues Probuild’s long AIB association across Australia.

The AIB representatives visited a number of building projects including WBHO’s Menlyn Time Square, Stefanutti Stocks – Building, Kusile Power Station Project and the FNB Stadium and a presentation by Boorgertman and Partners on the stadium design.

Australian High Commissioner in Pretoria Adam McCarthy extended an invitation to the AIB delegation to a function to help further strengthen the South African connection.

The Australian Institute of Building WA chapter’s Adam Harry, with national vice president Graham Teede and AIB Young Builders Alliance WA president Matt Bowen, has presented the inaugural AIB Address at the University of Pretoria in South Africa.

AIB signed a memorandum of understanding with the leading university in 2015 with the

aim of promoting education and careers in the construction management profession.

As part of its commitment to the MoU, the Institute undertook to deliver the AIB’s eminent speakers program, the AIB Address at UP. Along with Institute support, construction company Probuild provided financial help for the AIB team to travel to South Africa. Probuild’s

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50 UPDATES utilities J U LY / A U G U S T 2 0 1 6

Emerging technology: Opportunity or threat to Western Power?

A proposed integration of emerging technology and Western Power’s network in the Kalbarri region.

Seán Mc Goldrick Western Power executive manager asset management Seán Mc Goldrick comments on the topical issue of emerging technology and how Western Power is reacting.

There is no question: technological change is a game-changer for electricity networks. You either adapt and make the changes your customers want, or you start losing relevance.

Our customers have changed the way they use and receive power. For a network operator like us, change is imminent. Western Power is well on its way to understand the emerging trends and demands of customers and changing the way we deliver the electricity network services.

Some of the significant changes we have seen so far include the change in the flow of power. No longer is power going in one direction from the coal fired power station to homes. PVs and other distributed generation like batteries mean that networks need to be flexible and enable a more free flowing power network. We finally are seeing a maturity in technology in terms of technical capability combined with increasingly competitive pricing that is allowing us to intelligently deploy new technology onto the network.

You only need to look at the statistics for solar panels, where WA has the third highest photovoltaic (PV) penetration rate in Australia, with 18 per cent of WA homes having solar power. Nationally PVs generate a whopping 3GW of power, with close to 550MW here in WA. This, in aggregate, is the biggest generator to have connected to the SWIS in the past decade.

As demand increases and prices come down in battery storage options, the demand profile for customers and industry has the potential to shift even further.

This is just the beginning... microgrids, embedded generation, electric vehicles, can all play a part in our modern community. The price has to be right and community choice will drive its success. Our role is not to pick the right technology, but drive a solution that fits the need. The direction we take will ensure that the community can continue to share the benefits and reliability of being part of the grid of the future.

This is exactly what we plan to do with our recent announcement of a feasibility study for a microgrid in Kalbarri, which has the potential to be the largest in Australia.

Instead of using the traditional model of building new poles and wires to improve reliability, we will look to an innovative solution that will increase the utilisation of the existing network and improve reliability. It will be a win-win for the community and the network.

Trials and evaluations of new technologies are being done across the business to see which best applies to our network.

Some of the emerging technology projects Western Power is working on include the development of a microgrid on Garden Island in partnership with Carnegie Wave Energy and stand-alone power projects in the Great Southern and southern Wheatbelt.

Western Power is responding and investing in new technology where it makes sense. Emerging technology is exciting! It gives us options that didn’t exist before, that are now comparable in price to traditional solutions. There will come a time when customers have an economically viable choice to disconnect from the network and become self-sufficient.

Our job is to be sure those customers are making informed decisions and that they understand the value the grid provides. Where it doesn’t provide the value they are after, we look to alternative solutions.

utilities UPDATES 51 J U LY / A U G U S T 2 0 1 6

Sprinkler ban exemption trial under way

The Water Corporation is reiterating that the winter sprinkler ban is again in place from 1 June to 31 August for scheme and bore water users in Perth, Mandurah and parts of the South West and Great Southern regions.

However, a trial is currently underway where builders are exempt from the sprinkler ban and sprinkler rosters. Builders may only operate a sprinkler system on a building site to the minimum extent necessary to: • Comply with dust and soil suppression requirements under applicable environmental, health and safety legislation.

• Prepare the building site for building or excavation; or • To wet concrete during the curing process, provided the reticulation system is not used for this purpose for more than 10 hours in total per day.

The trial will conclude on 1 September when it will be reviewed by the Corporation.

The winter sprinkler ban, now in its seventh year, saves about 4.5 billion litres of water each year. Breaches can result in a $100 fine. Water Corporation has introduced an online form at watercorporation.com. au/breach to report potential breaches of the ban. Hand watering is permitted during the sprinkler ban and customers can apply for an exemption to establish new lawns.

Normal sprinkler rosters and the daytime sprinkler ban still apply to areas across WA which are not subject to the winter ban.

For more information about the winter sprinkler ban, visit watercorporation.com.au/sprinklerban.

Builders can keep up with the latest news from Water Corporation by liking the Corporation’s Facebook and Twitter pages.

EARLY CALL FOR NOMINATIONS Ric New Medal for Excellence Selection Criteria • Entrepreneurial flair, examples of lateral or creative thinking, outstanding potential and achievments of a young person (35 years and under) to the building industry in WA. • Practical applied achievements, rather than academic performance.

Prize In addition to the Ric New Medal, a return economy class airfare from Perth to London and $2,000 expenses.

Ric New “Rising Star” Award Selection Criteria • Outstanding potentional, work ethic and commitment of a young person (25 years and under, other than apprentices) to the building industry in WA. • Achievements (rather than academic performance), overcoming adversity and potential contribution to the building industry.

Prize $2,000 plus unique trophy Nomination Forms, to be completed by third parties, can be obtained from Master Builders (ph. 9476 9800 or email: jayne@mbawa.com).

The closing date for nominations is 21 September 2016.

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54 FEATURE J U LY / A U G U S T 2 0 1 6

Software

Finding the Right System for Your Business There are many factors to consider when purchasing business management software.

Here are some tips to help you make a better, more informed decision.

The good news – it’s easier than you think.

In a world becoming increasingly overrun with generic, one size fits all solutions, it is essential that when you make a decision about the system that is going to support your growth over the next 5 – 10 years that you choose carefully, and wisely. There are many traps out there, ready to snare the unsuspecting buyer.

When purchasing Business Management Software, you should plan for the future. It is not a wise decision to look for a solution for where your business is currently – if you do, you will very quickly find that you have to throw good money after bad just to play catch up.

It is, therefore, wise to base any decision on where you envisage your business to be in the future – and will support your business as it continues to grow. You are not just buying software – it’s not a stagnant one-off purchase – you are investing in a business partner, a team of people who will support your business, grow your business; and ensure your business prospers. Get this wrong and it could be a very costly, time-consuming mistake.

The following are some tips to help you find the right solution for your business.

Involve your team early Before you do anything, and I really mean ANYTHING – ask for feedback from your team. Don’t forget that many staff have the WIIFM (What’s in it for Me?) attitude. If you find a solution that you are happy with – then you may be the only person who uses it.

Getting feedback, and input from your team

will give them ownership, and a commitment to change, before you spend any money on a product you have to force or coerce your staff to embrace.

Analyse your current system What do you like about your current system?

What works and what doesn’t? What in your current systems causes you the most pain?

What features does your current system lack? What if you don’t have a system?

What happens to your family, you employees, and your clients; if all your knowledge, all your projects, your pricing, is all in your head, and you get hit by a bus tomorrow? Would your business survive without you?

Establish a ‘must have’ and ‘nice to have’ list At this stage you shouldn’t even be considering features – think big picture first. Consider the following as a first step…

• Scalability – How will the software grow as your business grows?

• Security – How secure is my data, and can I set security levels for different user groups?

• Support – How quickly will I get help, and where is the support situated?

• Ease of Use – How intuitive is the software?

How steep is the learning curve?

• Implementation – How long before your team can utilise the software?

• Who owns the Software? – If you stop paying subscription fees, can you still access your data? Are you leasing access to a system? If the data is cloud-based; who owns the data?

• Corporate Values – Make sure that you know what business values are important to you so that you can look for them in your software provider. If your values and ethics aren’t a match now – will they be a match in the future?

Once you have the big picture sorted out, now look at the features.

• What do you need the system to do?

• Is a fully integrated CRM, Estimating, Project Management, Scheduling, Accounting and Payroll system the answer?

• Do you have existing systems you want to keep and need to integrate?

• Is remote access important to the future of my business? If it is – then what platforms/ operating systems are supported?

• Who needs to access the system and how many people can access the system at once?

How easy is it to purchase additional licences?

Can you purchase additional short time licences to cover you at the really busy times?

Once you have created a list of features separate it into two categories – ‘must have’ and ‘nice to have’.

Your ‘must have’ list should be short and outline the features that are absolutely necessary for your business, taking into account your future growth The ‘nice to have’ list can be broader and features should be listed in order of priority, encompassing all of the capabilities that will make running your business easier.

Save time, increase profits CRM: The lead to sale process is simplified resulting in more conversions. Access and update your client information on any device, anywhere.

Estimation: Produce quick, cost-effective and personalised estimates for your clients using our rapid on-screen CAD Image take off tools

Contracts: Create purchase orders and variations and maintain a detailed construction timeline schedule.

Accounts: Full accounting functionality including payroll and timesheets with unrivalled budget control.

Mobile: Giving supervisors and employees all the tools required to maintain their on-site activities on their iPhones or iPads with access to live data in real time.

www.beamsbuild.com.au 1300 040 446

56 FEATURE J U LY / A U G U S T 2 0 1 6

Clarify your budget Set a budget and allow for other expenses, such as an upgrade of your existing hardware, network, and remote access solutions.

Also consider: • Will you be able to use the device out of the box, or will it require customisation?

• What are the ongoing maintenance expenses?

Reduce your options – make a first cut Once you have your ‘must have’ and ‘nice to have’ lists and a budget, you can shortlist your options.

Evaluate the available options and eliminate those that lack the features you need, leaving just two or three products that have a highquality customer support, a solid track record, and a broad user base.

you buy it. Book a second and a third demo.

Book as many as you need to be sure you are making an informed, educated decision. If that’s a problem for the software sales team, before you’ve handed over the cash – imagine what it’s going to be like getting help when you need it from the support team!

Plan the transition To avoid issues and downtime as much as possible, take the time to plan the transition to the new system. Know how long the system is going to implement. Break the transition into small steps and take it one step at a time. Expect teething problems. Schedule training early – ignorance breeds fear. Make sure your team knows what is happening each step of the way. Be transparent.

Get that commitment to change early.

Are there add-ons that you can purchase at a later date as you need them? If you don’t need scheduling now – but you will in the future, is that an option that can be added later on?

For example: • Avoid implementing new software during your busy times • Allow for system redundancy to ensure that none of your data is lost during the transition.

If you are changing your accounting software – consider running the old system until the end of the financial year so that end of year close is not overcomplicated. Start the new year fresh in the new system.

Choose your finalists – make a final cut!

Book a demonstration. See the system in operation. Get a feel for how the system will work in your business. Once again – involve your team. Involve ALL the decision makers.

Make sure you are happy with the system before

There are a lot of examples of new systems jumpstarting an organisation and being the catalyst for huge growth – you can only build a home with the right tools. Better tools should mean you build better homes. But often the reverse can happen. Buy the wrong tool,

Evaluate the options From the remaining options, determine which products deliver the most ‘nice to have’ features.

one that’s too complicated to use, or doesn’t complement the way you build and you have trouble with a capital “T”. All too often decisions about software are based on uninformed recommendations or rushed evaluations, trying to find a quick solution to an immediate problem.

Decisions are often based more on the need to act quickly than educated, considered choice.

On the other hand, some people identify the need to change, and are unable to commit to it – no matter how much they evaluate a system and know in their hearts that it is the right decision.

This is usually due to fear. Fear of change. Fear of making the wrong decision. Fear of the economy.

Fear of the future. Don’t let fear cloud your decision. If you have truly identified the need to change – then change is what you need to do.

Failing to make a decision can be as detrimental to your business as making the wrong decision.

In some cases, it might even be worse.

In summary – evaluate your current system.

Define your needs. Learn about the available options, thoroughly assess their suitability to your needs and prepare your team to make the most of them. Finding the right business management system and setting it up to support, not inhibit, your workflow is a matter of finding something that really fits your business and your team. Ask questions – expect answers. Make an informed decision, and sit back happy in the knowledge that your business has the correct system in place to support you now and grow with you into the future.

Building Australia Master Builders Australia

2017 National Conference, Building Exhibition & National Excellence in Building & Construction Awards

23–25 November 2017 | Hobart Tasmania The Master Builders Australia 2017 National Conference ‘Building Australia’ will be held in Hobart at the historic Princes Wharf 1 (PW1). The recently restored heritage building is a first class multi-purpose function and event venue located on the waterfront of the Derwent River in the heart of the Salamanca Precinct.

The venue is within close proximity to restaurants, hotels, cafes, retail outlets, major tourist attractions and departure points. Whether it’s a ferry to MONA or a coach to the top of Mount Wellington, PW1 provides a perfect base to explore the best Hobart and surrounds has to offer. As part of your conference experience, delegates will enjoy a river cruise to a special offsite conference dinner at MONA the Museum of Old and New Art. A comprehensive program of high profile speakers will examine the building industry outlook, focussing on topics relevant to today’s building and construction industry. An exciting social program will ensure delegates’ attendance is a rewarding experience. www.masterbuilders.com.au

Supplied by Mona 2011 National Awards

Image: Hobart City Council

Image: 2015 Master National Awards Image: Kathryn Leahy Image: Rob Burnett

Image: Jesse Dejardins

Michael Walters Photography

Image: Paul Fleming

Image: Alastair Bett

save the da

te

Image: Peter Topliss

Image: Andrew Ross

Image: Alastair Bett

Discover Tasmania

Alastair Bett

Local attractions and tours make Tasmania an ideal destination for delegates and their families. Attractions include MONA, the Salamanca Markets, Tasmanian Museum and Art Gallery, Mount Wellington, Historical Port Arthur, Richmond, Peppermint Bay, Cascade Brewery, Royal Botanical Gardens, Bonorong Wildlife Centre, Maritime Museum, Derwent River Cruise, Russell Falls, Pennicott Wilderness tours, Cradle Mountain and Cataract Gorge just to name a few. Images courtesy Tourism Tasmania.