2016 Master Builders SA Builder Magazine June-July

JUNE – JULY 2016

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AU S T R A L I A

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Advocacy update page 05

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Choosing the best laws to save lives

page 20

page 27

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Contents

SA BUILDER JUNE – JULY 2016

President: Richard Bryant Deputy President: Peter Salveson Vice Presidents: Mario Romaldi, Christopher Leopold Tickets for the 2016 Master Builders Building Excellence Awards night are on sale now, book today.

FOREWORDS 02

CEO’s Report

04

President’s Report

REPORTS 05

Advocacy Update

06

Master Builder News

Past President: John Kennett Treasurer: Mark Beatton Councillors: Enzo Zito, Jock Merrigan, Nick Abley, Morry Canala, Neil Mossop, Nathan O’Neill, Fred Pascale, Patrick Innes, Anthony Gow, Des Pawelski Master Builders South Australia PO Box 10014 Gouger St. 47 South Terrace, Adelaide, South Australia Phone: (08) 8211 7466 Fax: (08) 8231 5240 Email: buildsa@mbasa.com.au Executive Editor: Master Builders Association

UPDATES 18

Finance

27

Legal

33

Industrial Relations

36

Planning

40

Safety, Quality and Environment

42

Development and Technical

44

Apprentice of the Month Awards

FEATURES 50

Feature: Wall and Ceiling

Published by: Crowther Blayne Media Specialists Phone: 1800 222 757 Email: publications@crowtherblayne.com.au Web: www.crowtherblayne.com.au Business Development Manager: Trish Riley Sales: Paul Baird, Peter Shepherd and Rose Delosreyes Editorial: Jessica McCabe Graphic Design : Danny McGirr Design Team: Andrew Crabb, Michelle Triana Production: Yvonne Okseniuk Printed by: Newstyle Printing

IAN MARKOS,

CEO, Master Builders SA

There’s little question that future indicators show a challenging time ahead for the South Australian economy.

We are the only state to record a fall in building approvals compared to long-term averages, and are consistently recording the country’s highest unemployment rate. Our industry is also facing long-term challenges from rapidly-changing material and process technology that will change the way our industry works.

We are also an industry that is tied to every other part of the State.

Our health is tied to that of the broader community and we grow with the rest of the State.

Master Builders SA is focusing on helping our members navigate those challenges before us to become a stronger industry.

We are trying to provide tools and knowledge you can use to build your business, its productivity and profitability.

We had full attendance at our first interactive social media seminar, a free event focusing on arming members with some of the technological tools needed to connect with customers and market their businesses in today’s electronic environment. The high demand for this seminar ensures we will look to repeat it and similar courses.

MBA SA Legal partnered with Worrell’s to give members an understanding of how they can best protect payments received from a collapsed company in the face of a clawback claim from liquidators.

And our team of advisors presented our first quarterly update, giving members an understanding of the legal, technical and WHS issues they need to know to ensure their business complies in a world of changing regulations.

Our commitment to improving member skills and education is tied to an understanding that builders need to look beyond their technical skills to ensure they build a strong, long-lasting and healthy business.

Given the pace of change, however, there is never a single point in time when a business owner can say they know everything – successful builders are instead committed to ongoing learning, and Master Builders SA is here to support that journey.

The broader environment is also changing rapidly.

The Victorian Government has released its strategy for the Construction Sector, a strategy that directly acknowledges the impact of prefabricated housing, off-site construction techniques, building information modelling and other digital technologies.

2

CEO’s Report

Victoria has some geographical and economic advantages that support this strategy but the future of the South Australian industry deserves its own strategy that maps out a long-term future – with our members at the forefront of a growing sector.

Master Builders SA will be developing a draft strategy and working with the broader industry to act on our shared interest and will then work with the State Government to implement that strategy. We are reliant on our members – the very industry itself – to share their knowledge, experience and visions to feed into and develop this strategy, and I hope you can find the time now to invest in our industry’s future.

We are a member-based association and want our members to be involved at every level. Master Builders SA is reviewing its committees so they become places where members can share problems and solutions, and gather to develop ideas that can change the industry for the better. South Australians face a Federal election this year and a State election in March 2018 – now is the best time to take an active approach to creating change, and Master Builders SA is here to amplify your voice and create real change for the sector.

The State Government’s planning reforms, which were passed by Parliament in April, show that we can effect change and improve outcomes for members. The new laws promise shorter assessment periods, a facility for automatic approval, a cutting of development plans to a short menu of 40 overlays, and the introduction of an electronic planning system and a new Planning Commissions.

Deputy Premier John Rau acknowledges the role Master Builders SA played in improving the laws for industry – even in the face of our opposition to the introduction of an urban growth boundary, which was lost by one vote.

Master Builders SA is entering a phase where we are aware of the challenges our members face – and remain committed to providing you with the tools to improve your business, and the channels to create the change your industry needs.

SA BUILDER JUNE – JULY 2016

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RICHARD BRYANT,

President, Master Builders SA

Six months of debate, 235 pages of legislation and 400 proposed amendments – South Australia has a new planning system.

It seems like a dry way of viewing the homes and offices we build, but it’s the reality. Every project is based on a planning system that shapes how we interact with each other, how we invest and how we live.

So a full-blown overhaul is no mean feat. Creating change also creates room for discussion and, in some cases, dispute.

But when the dust has settled and the debates have retreated into the pages of Parliamentary Hansard, our industry has a new planning system that it must work with.

And overall it is an improvement.

Many of the decisions previously resting with the Planning Minister or the committees advising the Minister have been removed to a new independent statutory body, the Planning Commission, which will have its hands full from an early stage.

It sits at the top of the assessment tree – which includes facilities for joint planning bodies that span Council boundaries to allow for more consistent decisions – but is also responsible for developing the key planning policies contained within a Planning and Design Code and the Community Engagement Charter. The Charter will summarise community attitudes to specific requirements for certain categories of development and may also provide guidance on specific techniques. The Planning and Design Code outlines how State Planning Policies and Regional Plans are to be applied.

Many of the fine details will be developed over the next three years – enough time to allow industry bodies including Master Builders SA to develop workable documents that are true to the underlying aim of unlocking economic prospects. It’s a good touchstone for our industry.

The Commission also has a key role to play in delivering some of the most important benefits of this new system: the development of an electronic planning system, and the boiling down of the current 22,000 pages of planning requirements into a simplified menu of about 40 overlays.

Th is is crucial for our industry. Reliance on paper holds back a seamless development process, while the complexity of planning requirements often serves to hold back projects while those wanting to invest are forced to wait.

An online system will allow ready access to our planning system and allow for better control over projects, delays and opportunities. New categories of assessment focus on quicker assessment limited to the extent needed. Some projects will not need to be assessed – presumably ending difficulties with suburban treehouses – while minor variations will be allowed to avoid an overly technical approach that required Ministerial intervention last year.

4

President’s Report

Assessment panels, too, will be overhauled. The intention of the reform was to remove all elected members from panels to reduce the potential politicisation of the assessment process. It was a fundamental reform that Master Builders SA wholeheartedly supported.

The State Government has accepted a compromise of a maximum of one elected member on a panel. Given the politics at play regarding this measure, this can work for everyone involved in the process and will certainly be an improvement on the current situation.

In the last edition of SA Builder we spoke about the infrastructure funding schemes to be established under the Act. These are intended as a means of corralling funds from multiple sources to underwrite significant infrastructure investments. Deputy Premier John Rau emphasised his clear intention that these will be used to unlock opportunities that are currently languishing, and Master Builders SA will continue to look with interest at how these will be employed.

Finally, the legislation introduces an urban growth boundary. Master Builders SA remains opposed to this measure for its potential to hold back economic development and impact freedom of choice.

The measure passed with the introduction of several changes including a mandated review by the Planning Commission every five years and the introduction of either House of Parliament to disallow recommended changes within a certain time. The changes potentially do not make it a more workable reform.

As an industry we have to look at the overall package of reforms, and that package is likely to be positive. Shorter assessment periods, more focused panels with a minimum of elected members, reduced notification periods and appeals, all managed through a simpler system with an emphasis on online delivery.

Th is is a three – to five-year process with an industry panel to be Master Builders SA has been invited to advise the minister how to best implement the new system, joining the Urban Development Institute, the Property Council and the local Government Association in this vital role. We will be calling on our housing committee to help tease out the impact and to deliver the solutions needed to improve the system.

This is a once in a generation reform. It is the time to act if we want a better system to grow our business.

SA BUILDER JUNE – JULY 2016

IAN MARKOS,

CEO, Master Builders SA

Advocacy Update

Advocacy Update Master Builders SA is committed to speaking on behalf of its members to achieve benefits in the short, medium and long-term. Our advocacy efforts over the past two months have ranged the entire spectrum: one month, three years, 20 years and 100 years.

One Month: State Budget The State Government has an unenviable task in its State Budget, to be handed down in early July. It must find ways of sparking the economy and jobs growth without overextending its own financial commitments.

Master Builders SA has called on the Government to focus on laying down the infrastructure needed to create the right environment for job creation.

Cheap financing conditions allow the Government to expand its investment in productive infrastructure including the Gawler Line upgrade, which is expected to open up residential development opportunities. A commitment to the much-needed upgrade of Adelaide’s Courts precinct is also a must-have for our commercial sector.

The State Government should also consider extending small bar licence provisions beyond city limits to encourage business investment and active place-making. This is likely to create a new generation of entrepreneurs across the broader city rather than focus it on one Council area.

Current grants packages such as the $15 million Industry Attraction Fund should also be opened to existing businesses wanting to expand, Master Builders SA has argued, given that South Australian businesses have already shown a commitment to the State. Expanding operations here is likely to be less costly than trying to attract overseas companies to relocate.

Many elements of Master Builders SA’s major reform package, Improving the South Australian Construction Industry, have also been emphasised in this submission. Master Builders SA has called on the State Government to recommit to its role as a model client, engaging industry in fundamental changes in recognition of the interconnected nature of the sector. Master Builders SA has noted a recent move to hard price contracts, which risk creating massive discounting in an industry already suffering from negligible margins, and has asked the State Government to review the long-term benefits of fair pricing.

Tax settings should also be reviewed with the aim of supporting businesses and jobs. The payroll tax rebate for small businesses should be extended for two more years and incentives for apprentices and trainees extended to address growing levels of youth unemployment.

Continuation of existing stamp duty concessions for first home buyers and central apartment buyers should also be extended to avoid disrupting the market during a slowdown – and even extended beyond city boundaries to provide relief for those buying properties for less than the median house price.

The State Government can also focus on developing the long-term potential of South Australia by turning the current Economic Development Board into an entity looking for structural change, Productivity and Infrastructure SA. Ideally this body would look to improve the State’s productivity, including the investigation of private and public sector impediments.

SA BUILDER JUNE – JULY 2016

Combining licensing and prequalification functions could deliver true savings to taxpayers while also cutting the level of compliance for businesses, freeing resources for compliance and education.

Master Builders SA has also recommended the State Government consider the establishment of a new guarantee scheme to assist smaller builders and contractors. These groups are most at risk in the event of a corporate collapse with retention funds provided in cash rather than surety bond or bank guarantee, which means they are more likely to lose funds in the event of a liquidation or administration.

A Government-backed guarantee scheme – similar to current Home Indemnity arrangements, which are provided on a commercial basis – could give smaller businesses the protection they need.

The State Budget will be handed down on Thursday July 7, with full coverage at Master Builders SA’s State Budget breakfast the next morning. Keep reading What’s On for your chance to book.

Three years: Planning reform State Parliament has passed planning reforms after a six-month debate.

From an industry perspective they represent an improvement on the current system, although some elements such as the infrastructure funds may pose a challenge in practice. We remain opposed to the urban growth boundary established by the reforms.

Master Builders SA will be working with the State Government and other industry groups to develop an effective way of implementing these new laws. It is expected to be a three-year project, but is likely to deliver real benefits to our members by cutting paperwork and delays. We will continue to update our members on the outcome of these discussions.

Twenty years: Industrial manslaughter The Greens proposal for a new crime of industrial manslaughter has been referred to the Parliamentary Committee on Occupational Safety, Rehabilitation and Compensation. The proposal calls for a $1 million fine or 20 year jail sentence for any employer or officer that breaches a duty to provide a safe workplace resulting in a death.

Master Builders SA has made a full submission to the Committee (see page 20) to raise concerns about the proposed law’s likelihood of being counterproductive, while also pointing to the law’s obvious deficiencies. Master Builders SA has been called to give evidence to the Parliamentary Committee on August 4. We will fully support the interests of our members in this important cause.

One hundred years: Nuclear fuel cycle The Nuclear Fuel Cycle Royal Commission has released its initial findings and recommended South Australia establish a waste facility to accept nuclear waste from around the world. This could produce tax revenue of $5 billion a year for the first 30 years – about one-third of our current State Budget – and $2 billion thereafter.

Master Builders SA’s submission was based on comments, observations and concerns of our committees, welcoming the potential but also highlighting the inexact nature of many of the forecasts.

At this point in time, industry would welcome the potential for the 4500 jobs estimated to flow from the project as well as the additional business confidence it is likely to drive.

Needless to say, it is a long-term project.

5

WILHELM HARNISCH,

CEO, MBA Australia

Master Builders News

Boosting women’s participation in building top priority for Master Builders Women wanting to forge careers in the building industry will receive extra support with the launch of Master Builders’ Advancing Women in Building and Construction Program by Prime Minister Malcolm Turnbull and Minister for Women Michaelia Cash.

“The Commonwealth Government will provide $250,000 in funding over 12 months for this pilot program under its Women’s Leadership and Development strategy to help increase the participation and employment of women in the building industry,” Wilhelm Harnisch said.

“It will come as no surprise that women are substantially under-represented in what is a traditionally male dominated industry but Master Builders is determined to build on our current efforts to change that”.

“Advancing Women in Building and Construction will provide a dramatic boost to Master Builders’ commitment to providing real opportunities for women to have rewarding lifelong careers in the building industry by attracting, mentoring and retaining women in the industry”.

“Women currently only make up 11% of the industry’s workforce while in the traditional trades women comprise just 1%”.

“Master Builders recognises that there is substantial opportunity for continued improvement but also significant cultural barriers to overcome including the inbuilt biases of middle managers and some parents and teachers identified by Master Builders. Advancing Women in Building and Construction is about breaking down those barriers to women commencing, maintaining and reaching their full potential in the industry”.

“The program will also deliver to employers the benefits of attracting and retaining increased numbers of workers largely untapped by the industry” .

“We know that while they are currently low in number, women trained in building trades are highly motivated to attain high standards in the skills that employers need”.

“Building techniques are rapidly changing as new technology increasingly takes hold in the industry and increasing the numbers of women in building will play a key role in the industry meeting the rising demand for a skilled workforce”.

“The building industry will create 300,000 new jobs over the next decade which will provide huge opportunities for women fi nd employment, empowerment and opportunities to advance and achieve their full potential in an exciting and expanding industry”.

JOHN RAU,

Deputy Premier

Business opportunities given boost by reduced Red Tape DPA Business opportunities in our prime centres, business districts, local shopping areas, main streets and commercial strips throughout Greater Adelaide have been given a boost following approval of the Existing Activity Centres Policy Review Development Plan Amendment.

“More work is planned to unlock economic opportunities for the retail and other business sectors by reducing red tape”, Mr Rau said.

“While the investigations for a further rezoning have begun, more conversations with business are needed to set out the planning blueprint for the retail sector going forward.

“With the Planning, Development and Infrastructure Bill having recently passed through the Parliament, now is a great time to reconsider ways to make best use of the new planning tools to stimulate business investment and innovation across our State”’ said Mr Rau. The change will support greater business opportunities, flexibility, and competition as well as stimulating the economy. It represents a significant step in replacing outdated, inconsistent, heavy handed and anti-competitive land use policies found in development plans relating to activity centres and shopping activity.

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This approval means that key requirements in 25 development plans of the Greater Adelaide area, excluding the City of Adelaide, will be better placed to encourage investment, innovation and competition in the affected areas as a result of changes that make it easier for retail development to occur in areas where it is anticipated.

The proposed changes to the development plans underwent two months of consultation between 27 August and 21 October 2015, and attracted 45 public submissions. The general level of support for the changes is welcomed, but there is still more work to do to ensure established businesses can grow and that new businesses can enter the market place to improve services and consumer choice.

A roundtable will soon be held with key stakeholders in the industry, to help inform this next stage of work.

SA BUILDER JUNE – JULY 2016

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Master Builders News

WILHELM HARNISCH,

CEO, MBA Australia

Women deserve respect by unions on building sites It is important to challenge the CFMEU to do better in their treatment of women on building sites. The celebration of International Women’s Day in early March was a timely reminder for all of the industry on the issues of inclusivity, equality and how abuse and violence directed at women will not be tolerated at home and in the workplace.

“The aggressive and abusive approach taken by union officials against women on building sites is another feature of the underlying toxic culture of the CMFEU,” Wilhelm Harnisch said.

“The Heydon Royal Commission, and other recent cases, uncovered evidence of CFMEU officials bullying women on construction sites”.

“Incidents at Barangaroo, for example, are one of many where union officials’ behaviour is deliberately intimidating and calculated to belittle and scare female inspectors of the Fair Work Building and Construction (FWBC)”.

“FWBC Director Nigel Hadkiss told a recent hearing of the Senate Estimates Committee that such behaviour against women by union officials is commonplace throughout the industry”.

“These are regrettable examples of the CFMEU’s attitude to women on construction sites”.

“Th is behaviour is not tolerated in the home, it’s not tolerated in the community nor can it be tolerated on building sites”.

New drug and alcohol requirements As of 1 February 2016, Fair Work Building & Construction commenced the final stage of its three phase implementation of the new drug and alcohol requirements as part of the 2013 Building Code. It is important that all industry participants are aware of their obligations and what this means for them.

The new changes follow a decision announced on Friday 18 September 2015 in which the Australian government introduced higher workplace safety standards for construction sites by requiring building contractors on projects funded by the Australian Government to manage the risks of drug and alcohol impairment. As FWBC is responsible for monitoring compliance with the agency is also responsible for ensuring the new requirements are followed.

The first stage and second stages of the implementation plan focused on providing information to industry on the new requirements and then reviewing contractors’ policies and providing feedback on compliance with a strong focus on voluntary rectification.

With these two phases now complete, the agency has moved to auditing contractors’ fitness for work policies to assess the practical implementation of drug and alcohol testing onsite. The audits examine whether the policy is being implemented in accordance with the requirements of the Building Code. This includes, but is not limited to, requiring evidence that demonstrates: • testing is being undertaken on a random basis; • testing is being undertaken at least monthly; • testing is being conducted on the minimum number of required personnel (10% except on larger projects); • that the required substances are being tested for; • testing is being conducted using an objective medical testing method; and • testing is being conducted by the head contractor and not being pushed down to the sub-contractors.

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Investigators will also take a copy of the fitness for work policy and will check the substance of the plan against the requirements of the Building Code. After analysis of documentation and any interviews undertaken during the site audit, FWBC Investigators will write to the company with the audit outcome.

In the event that issues/breaches are identified, correspondence will be sent to the company outlining the issues or alleged breaches and seeking the company’s response with an opportunity (where possible) for the matter to be rectified. It should be noted that on some occasions breaches that are considered to be of a serious nature cannot be voluntarily rectified.

The new requirements introduce higher workplace safety standards for construction sites by ensuring that all building contractors covered by the Building Code have workplace health, safety and rehabilitation system that includes detail of how they will manage drugs and alcohol in the workplace.

In effect, this means that all construction projects that have at least $5 million of Commonwealth funding are required to have a fitness for work policy that includes drug and alcohol testing for those on site undertaking building work.

FWBC has been working collaboratively with industry to ensure contractors are aware of their rights and obligations in relation to drug and alcohol testing on sites. So far feedback on this process has been positive and the agency looks forward to working with the industry to ensure the new requirements are implemented as seamlessly as possible.

Contractors can contact FWBC with specific questions regarding their fitness for work policy. However to be deemed compliant, the testing regime onsite must also reflect the requirements of the Building Code and contractors must keep records that demonstrate their compliance. Further information on the drug and alcohol testing under the Building Code can be found at https://www.fwbc.gov.au/building-codedrug-and-alcohol-testingunder-building-code-2013.

SA BUILDER JUNE – JULY 2016

Master Builders News

IAN MARKOS,

CEO, Master Builders SA

Looking for the corner for new activity in South Australian building and construction industry South Australia’s third-largest industry shows its own two-speed economy with slight growth in home building over the past year failing to outpace the fall in commercial construction.

Data released by the Australian Bureau of Statistics shows $2.4 billion of private residential construction for the year to December 2015, up 5.6 per cent from the previous year.

But total commercial construction has recorded a 7.6 per cent fall to $2.1 billion for the same period, leading to an overall 1.6 per cent fall in South Australia’s building activity to a touch over $5 billion in 2015, Master Builders SA Chief Executive Officer Ian Markos said.

“Our members are telling us that it is tough out there, and these figures prove it,” he said.

“The pullback in Government investment in infrastructure is obviously hitting and hurting, and the main thing holding back private

investment – confidence – is likely to be challenged with coming closures in auto-manufacturing and uncertainty in defence.

“Industry has provided the Government with a list of Budget-neutral reforms that can build a more resilient sector before it’s too late. We don’t want to find ourselves on the brink because people didn’t listen to us and to the obvious warning signs.”

South Australia is the only Australian state or territory to record activity figures lower than the average over the past 10 years, while Eastern Coast states are recording rises above 30 per cent. Rises in construction costs have helped push construction activity past 10-year averages but the 5.2 per cent increase reflects an overall consolidation of one of the State’s biggest employers.

LAST YEAR

10–YEAR AVERAGE

This Quarter

This Year

Amount ($m)

Change

Amount ($m)

Change

New Private Residential Construction

$582.5

$2,359.9

$2,234.4

5.6%

$2,114.2

11.6%

New Residential Construction

$590.5

$2,397.5

$2,307.6

3.9%

$2,218.1

8.1%

New Private Residential Alterations and Additions

$110.0

$432.4

$433.3

(0.2%)

$415.4

4.1%

New Residential Alterations and Additions

$110.0

$437.6

$437.2

0.1%

$418.4

4.6%

New Private Residential Construction and Additions

$692.5

$2,792.3

$2,667.7

4.7%

$2,529.6

10.4%

New Residential Construction and AdditionS

$701.4

$2,835.1

$2,744.8

3.3%

$2,636.5

7.5%

New Private Non-Residential Construction

$395.1

$1,549.3

$1,592.6

(2.7%)

$1,326.9

16.8%

$559.3

$2,086.8

$2,257.2

(7.6%)

$2,041.6

2.2%

New Private Construction

New Non-Residential Construction

$1,087.6

$4,341.6

$4,260.3

1.9%

$3,856.5

12.6%

New Construction

$1,260.7

$4,921.9

$5,002.1

(1.6%)

$4,678.1

5.2%

Source: Australia Bureau of Statistics, Construction Work Done, December 2015. Cat: 8755.0

Master Builders SA 2016 Building Excellence Awards Book your tickets to the annual premier event on the building and construction calendar.

The Master Builders SA Building Excellence Awards is the showcase for excellence in South Australian building and construction industry for residential and commercial sectors.

The Building Excellence Awards is a unique opportunity for the industry to acknowledge excellence, find out what are the new and innovative trends, to network with your peers and suppliers and manufacturers.

Taking part demonstrates a commitment to quality workmanship; winning an award provides endless marketing opportunities and recognition as an industry leader.

Come and celebrate with the industry and especially the winners who will have the opportunity to enter into the National Awards and again prove that South Australian builders are world class.

The Awards Ceremony at the Adelaide Convention Centre is on Friday 12th August and tickets can be booked by logging on to the website or contacting Renee Ancell at Master Builders.

For further information regarding the Awards submission process, please contact Master Builders SA Marketing Manager Renee Ancell at awards@mbasa.com.au or phone 08 8211 7466.

SA BUILDER JUNE – JULY 2016

9

Master Builders News

Master Builders Submission on the Tentative Findings of the Nuclear Fuel Cycle Royal Commission Recommendations in brief • The economic benefits of any proposal waste facility should be specifically verified in a clear manner to avoid overstatement that might be used as a political means of detracting from such a proposal.

• The Royal Commission should considering recommending a staged approach to expanding a waste facility to create additional business opportunities but also to appropriately develop community consent at each discrete stage.

• This approach should involve discrete scientific and risk analyses.

Master Builders SA welcomed the opportunity to provide a submission to the Royal Commission on its tentative fi ndings. We are broadly supportive of the opportunities presented in the Commission’s findings but also seek to relay reservations expressed by some members.

Given our members are likely to be beneficiaries of the opportunities contained in the Commission’s findings – both through the direct creation of construction jobs and the indirect benefits resulting from a stronger economy with an independent revenue stream – Master Builders SA believes the industry’s perspective adds significant weight to the community debate.

Building and construction as an integral member of the community South Australia’s building and construction sector is connected to every aspect of the State’s economy. Our members provide the homes

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for growing families, the offices, warehouses and shops for growing businesses and the roads and schools that connect South Australians.

We are also dependent upon the confidence of the broader community.

A lapse in business confidence translates to a collapse in construction investment, and a fall in consumer confidence means families look to consolidating the present rather than investing in their future. In short, we celebrate and bleed with the health of South Australia.

The Royal Commission’s Tentative Findings have outlined a proposal to manage, store and dispose of nuclear waste with an emphasis on the benefits to be derived from direct revenue, profits and construction jobs. If these estimates are delivered, they are likely to produce a more sustainable Budget over the next 100 years, leading to more confident businesses and consumers willing to invest in their futures. Further, interstate immigration is likely to benefit as migrants look to a long-term future in South Australia, thus boosting private demand.

The building and construction industry is likely to benefit both from this growth and the thousands of jobs likely to flow from this path.

Additionally, the creation of an estimated $5 billion annual revenue flow for the fi rst 30 years will potentially expand the State Government’s revenue base and thus provide much-needed relief for businesses and households currently bearing the State’s tax burden.

However, a lack of community consensus or poor execution may damage the State’s reputation in the short–to medium-term, thus impacting that same confidence.

Master Builders SA speaks on behalf of an industry whose future is intimately tied to the success or failure of the issues being considered by the Royal Commission.

SA BUILDER JUNE – JULY 2016

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Master Builders News

Benefits to supporting a waste management and disposal site Our members are broadly supportive of a project likely to deliver significant construction jobs and a more sustainable Budget. In the words of one member: “When do we start?”

The Royal Commission outlines the potential economic impact of investing in this option as including 1500 full-time jobs during construction with a peak of 4500 jobs. However, there is scepticism about the measurement of jobs creation attached to any project: “They say there’s going to be ‘X’ number of jobs, but they count the same job two or three times, like you’re going to fire someone every year.”

We suggest any economic measurement of employment benefits to flow from any project should make clear the implicit assumptions underlying those measurements. The number of jobs might be better expressed as ‘job years’ as a means of capturing the turnover implied in the calculation. Our concerns are that any failure to clearly and accurately communicate such information risks over-spruiking benefits in a way that might later compromise a logical case for change.

By way of example, the case for changing South Australia’s time zone was based partly on a cost benefit analysis showing a $2.5 billion benefit from the change, yet subsequent analysis suggested an economic loss was likely to occur, thus removing a key argument for change. Further, the cost benefit analysis was found to omit key impacts including injuries resulting from the proposal, thus effectively ignoring substantial risks likely to flow from the decision.

Master Builders SA recognizes that the Tentative Findings represent a preliminary analysis only. We recommend the benefits be tested and verified in a specific manner to remove doubts that might be cast upon the final decision.

Benefits of a stable waste facility as an enabler industry The Association notes the Royal Commission’s Tentative Finding that a stable waste facility might serve as a means of exploring related activities including fuel leasing and related processing. We support this approach for the likely benefits to flow to the broader commercial sector over the long-term with the advantage of potential tax revenue as income for the State Budget.

Social and community consent is vital to this process, from its potential beginning as a waste management facility to the extension

12

of that facility in coming decades to new ventures. We suggested a staged approach is more likely to be successful and recommend’s the Royal Commission expressly consider’s a staged expansion, with each subject to further consultation. This need for social consent appears to be clearly contemplated by the Royal Commission.

Environmental and safety risks Members have expressed concerns about the likely environmental and safety risks flowing from the proposal recommended by the Royal Commission.

Commentators have also raised concerns that the Royal Commission’s proposed storage facility measures its benefits over 100 or more years, whereas the potential dangers are measured over hundreds of thousands of years.

Master Builders SA does not necessarily support this position as a matter of policy. We note that this approach fails to account for potential savings to the broader community by removing current holdings of low level nuclear waste in urban facilities as well as the low level of risk in a specialist facility in a remote location. We also note there is no provision for the benefits to flow from additional opportunities as discussed above.

Master Builders SA supports a robust scientific assessment of the underlying risks and the need for a risk assessment pertaining to the selection of a specific site.

Conclusion We support the process being undertaken by the Royal Commission and its appreciation of the need to build a broader community consensus around its fi ndings.

Master Builders SA is a member of the broader South Australian community and dependent upon its long-term health and confidence. For these reasons, we are generally supportive of the potential for a new revenue stream to underpin the State Budget over the long-term. However, we also urge a conservative approach to estimating the likely benefits accruing to the community from job creation to ensure the assessment undertaken is realistic with a view to the on-ground impact of this commitment.

SA BUILDER JUNE – JULY 2016

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Master Builders News

No change to negative gearing backed by builders “Confidence in the residential building sector will be boosted by the Government’s announcement that it has out ruled out any change to the current negative gearing arrangements in the May Budget,” Wilhelm Harnisch said.

“The retention of negative gearing provisions for new and established homes is a long held policy by Master Builders and therefore Master Builders strongly backs today’s announcement”.

“The Prime Minister’s announcement means $8 billion of investment each year spent on renovation of private rental properties will continue and thereby boost economic growth and jobs for tradies”.

Negative gearing underpins investment, largely by mums and dads, in private rental properties and plays a critical role by supplementing the shortage in public and social housing rental stock where there is a waiting list estimated to be around 200,000 households”.

“Master Builders in strongly backing today’s announcement is now looking to the major parties for sound policies that will tackle the structural barriers to housing affordability which is to increase the supply of new housing. Master Builders has called for national competition policy payments to state governments and local councils to implement targeted and permanent removal of the current unnecessary blockages that delay the supply of new housing and inflate the cost of new housing”.

“This is one of the key housing affordability reforms that Master Builders will be calling on both parties to deliver on for the next term of government”.

IAN MARKOS,

CEO, Master Builders SA

Patience and planning needed for healthy building Building activity continues to flag in South Australia with approvals falling further behind.

South Australia was the only State to record a fall on its 10-year average. About 10,900 approvals were recorded in the year to February, down 3 per cent on the 10-year annual average of 11,208 dwellings approved.

In contrast, New South Wales is rocketing ahead 62 per cent above its long-term average while Tasmania ranks second-lowest – still 2 per cent ahead of its 10-year average.

The value of approvals has increased to $4.575 billion over the past 12 months, up 7.7 per cent on the previous 12 months and 8.7 per cent over the average of the past 10 years.

Master Builders SA Chief Executive Officer Ian Markos said there was a consistent story – reforms are needed to spark new demand.

“Steel, Defence and auto-manufacturing have reached or passed crisis point and have the full attention of the Government for good reason,” he said.

“But the building and construction sector employs more than 55,000 people directly and many more indirectly – the Government needs to engage with the reform proposals we have provided to avoid heavy job losses in one of South Australia’s most fundamental sectors.

“Planning reforms are a start – now it’s time to look to our Budget proposal and reform proposals for the changes that will build the sector over the next decade.”

14

SA BUILDER JUNE – JULY 2016

Master Builders News

Salary Sacrifice and Superannuation As the national industry super fund for the construction, building and allied industries, Cbus is committed to helping you manage your employees’ super payments and maximising their retirement outcomes.

One of the key ways that your employees can give their super a boost is to make regular salary sacrifice contributions.

Salary sacrifice is an agreement made between an employer and an employee whereby the employer pays a set amount of before-tax salary into the employee’s super account, so that their contributions can be taxed at a lower rate of 15%. By making these extra contributions it can make a big difference to their super in years to come.

The Government places limits on the amount which can be contributed to an employee’s super each year, and therefore it is important for the employee to monitor the amount being contributed to their super fund.

To fi nd out more about salary sacrifice and other ways employees can make additional contributions to their super, talk to our dedicated team of Cbus advisors on 1300 361 784, or visit www.cubssuper.com.au.

Th is information is about Cbus. It doesn’t take into account your specific needs, so you should look at your own fi nancial position, objectives and requirements before making any fi nancial decisions. Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you. Contact 1300 361 784 or visit www.cbussuper. com.au for a copy. Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262.

JAMES O’HALLORAN,

ATO Deputy Commissioner

SuperStream deadline rapidly approaching The ATO has released an updated, mobile-friendly version of the employee/contractor tool to help businesses correctly meet their tax and super obligations for their workers.

Deputy Commissioner Steve Vesperman said there are many myths about employee/contractor arrangements, and that it is important for all businesses to get the distinction right.

“We know from our own field work that many businesses are getting the employee or contractor decision wrong, and often this is just not knowing what determines one from the other,” Mr Vesperman said.

“The decision tool is accessible through any mobile device. Provided the answers reflect the actual engagement arrangements, businesses will get a result they can rely on about whether their worker is an employee or contractor.

“Any business owner who uses this tool will be in no doubt about how to meet the tax and super obligations for their workers.”

Incorrectly treating employees as contractors is a problem in many industries, in particular the building and construction, cleaning, road transport and security industries.

Mr Vesperman said while most business tried to do the right thing, some businesses deliberately treated their employees as contractors to illegally lower their labour costs by not withholding tax or paying the super guarantee.

“In the long-run it just isn’t worth risking penalties that may apply – this tool will help you get it right,” Mr Vesperman said.

Businesses can access the employee/contractor decision tool by visiting ato.gov.au/ec SA BUILDER JUNE – JULY 2016

15

Master Builders News

Tips For Covering Your Tools and Equipment A typical construction site is an irresistible temptation for thieves.

Security is often minimal, valuable equipment and materials are left unattended for extended periods of time, and it can be difficult for would-be witnesses to differentiate acts of theft from the routine movement of equipment on and off site. The consequences from theft can be significant, often causing extended downtime and costly delays.

Imagine the impact on your business without your tools and equipment!

MBAIS can provide various options to cover this risk to your business, including theft ‘on site’ or ‘anywhere in Australia’. One of our builders, who recently elected to upgrade his cover to ‘anywhere in Australia’, was relieved to have the broader cover, as thieves stole tools from his utility parked in the driveway of his home, which was not considered by the insurer to be ‘on site’, despite the fact he was building a deck and pergola at his own home.

Tip #1: Underinsurance and depreciation When claiming for tools, there is potential for depreciation, underinsurance and excesses to be deducted, so make sure you are adequately covered. If you are only declaring a proportion of the market value of your tools, it is possible that underinsurance could be applied, resulting in your claim being reduced by the percentage you underinsure.

If your tools are more than two years old (or less under some policies), depreciation can be applied, reducing the value of your payout.

16

Tip #2: Keep your tools out of sight There is a ‘duty of care’ condition in every insurance contract. When you are not using your tools and equipment, ensure they are kept in a locked and secure area out of plain sight. Don’t leave your trailer on-site overnight, as it is an obvious target, however if this can’t be avoided, make sure you have wheel clamps and keyed lock nuts on the trailer wheels at all times.

Need to insure your tools?

Contact the team @ MBA Insurance Services for various options to cover this risk to your business.

Confi dentiality / Limited Liability Statement Th is message contains privileged and confidential information intended only for the use of the addressee named above. If you are not the intended recipient of this message, you must not disseminate, copy or take any action in reliance on it. If you have received this message in error, please notify Master Builders Association of SA Inc immediately. Any views expressed in this message are those of the individual sender, except where the sender specifically states them to be the views of Master Builders Association of SA Inc. The sender cannot guarantee that this email or any attachment to it is free of computer viruses or other conditions which may damage or interfere with data, hardware or soft ware with which it might be used. It is sent on the strict condition that the user carries out and relies on its own procedures for ensuring that its use will not interfere with the recipients systems and the recipient assumes all risk of use and absolves the sender of any responsibility for any consequence of its use.

SA BUILDER JUNE – JULY 2016

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Finance

A Budget for jobs The 2016 State Budget has a responsibility to protect the jobs of today and create the right settings for the jobs of tomorrow.

In its State Budget submission, Master Builders SA is calling for Budget-neutral changes that can spark new jobs and consolidate existing jobs in South Australia’s building and construction industry.

Smart infrastructure investment, expansion of key investment initiatives beyond the city limits and a focus on the long-term impact of State Government processes can establish a strong culture of job creation and the cultivation of essential skills.

Similarly, the future health of the South Australian economy can be supported through a focus on new forms of construction, the repurposing of the Economic Development Board into a combined Productivity and Infrastructure Commission, and the consolidation of licensing and prequalification to deliver smarter and more efficient consumer protection and business savings.

18

SA BUILDER JUNE – JULY 2016

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The sixth edition of the Australian Standard Method of Measurement of Building Works has now been released. Published by the Australian Institute of Quantity Surveyors and Master Builders Australia, the Standard Method of Measurement provides a uniform basis for the measurement of building works.

Since the First Edition in June 1959, the publication has become a core resource for estimators, quantity surveyors and builders alike. The new edition has been updated and rationalised to incorporate developments in the building industry. The well-known, easy to use tabulated format has been retained.

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Finance

Other Business Measures

Building sector a big budget winner in 2016 Scott Morrison’s first Federal Budget is seen as boasting many positives for the building and construction sector with its commitment to lower taxes and a more sustainable outlook. Master Builders Australia’s CEO update covering all aspects of the May Budget is available at www.mbasa.com.au.

Key measures include: Tax Cuts • Companies turning over up to $10 million will have taxes cut from 30 per cent to 27.5 per cent from July 1. This is expected to benefit 870,000 Australian businesses to allow greater investment in their business.

• Unincorporated businesses turning over less than $5 million will receive an 8 per cent tax discount from July, up from the existing 5 per cent discount, with a continued cap of $1000. The discount will increase annually to 16 per cent in 2026 and is estimated to benefit 2.3 million unincorporated small businesses.

• The 27.5 per cent company tax rate will be accessible by more companies over time: those turning over up to $25 million will gain access in 2017-18, up to $50 million from 2018-19 and $100 million in 2019-20. This will increase until 2023-24, and the company tax rate will be cut to 25 per cent in 2026-27.

• The final year of the $20,000 instant asset tax write-off – which has been of significant support for builders – will be expanded from businesses earning up to $2 million to those earning up to $10 million a year. This will allow businesses to instantly write off the cost of business assets rather than spreading the cost over a number of years.

• A shift in the second-highest tax threshold from $80,000 to $87,000 will see some relief for many taxpayers.

20

• A commitment has been made to developing simplified GST (BAS) reporting for businesses turning over less than $10 million.

• Additional funding of $16.3 million over four years will be provided to the office of the Small Business and Family Enterprise Ombudsman to assist with broader inquiries and advocacy.

• Australian Taxation Office to investigate electronic invoicing for potential rollout in 2017. The measure is aimed at cutting manual processing by businesses.

• Funds have been set aside to continue the joint police taskforce into matters arising from the Royal Commission into Trade Union Governance and Corruption. The taskforce will continue until the end of this calendar year.

• No changes to negative gearing, ensuring no massive changes to property valuations and key valuation drivers.

• Changes to Division 7A tax arrangements relating to loans and debt forgiveness between companies and shareholders will aim to cut tax avoidance but may cause short-term concerns for family and small companies. The changes are based on a review conducted by the Board of Taxation and will come into effect July 1, 2018.

Support For Youth Jobs • Businesses to receive cash bonuses for offering internships or jobs for young job seekers. Beginning April 2017, businesses will receive an up-front payment of $1000 for a 4-12 week internship (up to 30,000 will be offered).

• Employers hiring job-seekers from January 2017 will receive a wage subsidy of between $6500 and $10,000 under the program. In the words of Treasurer Scott Morrison, this will lead to “real work experience with real employers that lead to real jobs”.

Other Measures And Infrastructure • Additional funding of $3.4 million over two years to the Asbestos Safety and Eradication Agency to coordinate the National Strategic Plan for Asbestos Management and Awareness 2014-2018 for a national approach to asbestos management and awareness in Australia.

• Continued funding of the Torrens to Torrens and Darlington Interchange roads projects.

• A commitment to 12 Future Submarines to be built in Adelaide, which is likely to provide future, demand for South Australia’s housing and commercial sectors.

SA BUILDER JUNE – JULY 2016

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Finance

Tax concession benefits for small business The ATO is reminding small businesses to stay up to date with what tax concessions can benefit their small business growth.

ATO Assistant Commissioner Michael Ingersoll said that there are a range of concessions that both new and existing small businesses can benefit from.

“If you own a small business, it’s important to make sure you know what concessions you are eligible for and when they start. You don’t want to find out once it’s too late,” Mr Ingersoll said.

“You can qualify for many of these concessions if your small business has a total turnover of less than $2 million either in the year you use the concession or the year before that.

“It’s always good to double check the criteria if you think you may be eligible for a concession. For example, all primary producers qualify for the accelerated depreciation for primary producers regardless of turnover.

“We have a very useful page on our website, called ‘What’s new for small business’, which updates small business owners on the new concessions open to them,” Mr Ingersoll said.

22

Concessions for small business include: • Instant tax write-off for each asset costing less than $20,000 for small businesses.

• Accelerated depreciation for primary producers.

• Immediate deduction of professional expenses for small business start-ups.

• Tax offset of 5 per cent up to $1,000 for unincorporated small businesses.

• 1.5 per cent small business company tax cut.

• No fringe benefits tax for providing multiple electronic devices to small business employees.

• No income tax liability for asset rollovers when a small business is restructured.

To find out more about small business tax concessions visit the: ATO website and log on to What’s new for small business. Check online for budget impact.

SA BUILDER JUNE – JULY 2016

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Finance

RUSSELL EMMERSON,

Director of Policy and Communications, Master Builders SA

Higher SA approvals can be boosted to a trend An uplift in South Australian building approvals for the year to March 2016 can be converted to a sustained trend with the right triggers, Master Builders SA says.

Data from the Australian Bureau of Statistics shows the value of South Australian approvals for new homes for the past 12 months has increased 5 per cent to $2.5 billion and is 14 per cent higher than the 10-year average of $2.2 billion on a trend basis.

Non-residential work is also showing positive signs with its $1.8 billion of approvals for the year to March 2016 a full 7 per cent higher than the 10-year average of $1.7 billion.

Master Builders SA Director of Policy and Communications Russell Emmerson said the housing industry would embrace the positive and hope for a sustained recovery in South Australia.

“Th is could be a short-term change or a long-term trend. If the Reserve Bank cuts interest rates and the Federal Budget gives industry reasons to be confident – and a focus on tax cuts for small business may just do that – then we may be able to point to these figures as the way forward,” he said.

24

“But it’s still difficult to ignore the fact that South Australia is still the only State where building approvals are less than their 10-year average. Approvals in almost every State are sitting at more than 10 per cent above historic levels, while Western Australia is falling as the effects of the mining boom pass and Tasmania is sitting right on its 10-year average.

“The Federal Government’s awarding of the bulk of the submarine build to Adelaide and the State Government’s ready action to secure more work are likely to have very real benefits for South Australia’s building and construction industry – we hope to see more confidence, more demand. But we can’t ignore the need for structural change if we are to build our own foundations to drop our country-leading unemployment.”

The State Government is currently considering a suite of reforms developed by Master Builders SA aimed at improving the long-term sustainability of the State’s building and construction industry.

SA BUILDER JUNE – JULY 2016

Finance

WILHELM HARNISCH,

CEO, MBA Australia

Non-residential building prospects a drag on optimism Master Builders National Survey of Building and Construction shows that builders remain confident about future prospects in the short to medium term despite a drift down in their actual operating conditions.

“Residential building continues to power ahead but the same cannot be said of the non-residential building sector where momentum appears to have stalled,” Wilhelm Harnisch said.

“While residential building is now at the mature phase of the cycle and past its peak the good news is that a record level of starts means a strong pipeline of work will keep activity strong in 2016”.

SA BUILDER JUNE – JULY 2016

“Whereas, the Survey shows that the absence of a strong pickup in demand in the non-residential building sector means commercial builders are lukewarm about future prospects”.

The latest Master Builders National Survey of Building and Construction is available on the web site at www.mbasa.com.au or on the national site at www.masterbuilders.com.au

25

WILHELM HARNISCH,

Finance

CEO, MBA Australia

Welcome bounce back in approvals “The March 2016 building approvals show the new housing sector retaining a head of steam with total approvals increasing by 3.7 per cent seasonally adjusted,” Wilhelm Harnisch said.

“The increase in building approvals are driven by the three larger states Victoria, New South Wales and Queensland”.

“The largest jump in approvals was 6.7 per cent seasonally adjusted for apartments with a welcome 2.6 per cent jump for new houses”.

26

“The latest approvals data indicates that new housing will continue to play a positive role in the economy and jobs”.

“Master Builders will be looking for measures in the May Budget to maintain momentum in the new housing sector”.

SA BUILDER JUNE – JULY 2016

RUSSELL EMMERSON,

Legal

Director Policy & Communications, Master Builders SA

Choosing the best laws to save lives systems are circumvented because a worker has not paid professional attention to those systems. In other words, it attaches responsibility to those with control.

From a public policy perspective, the current legislation sends a very clear message: do not be reckless, do not in any way breach a health and safety duty, for even where there is no injury, you will be held liable.

Effectiveness of current provisions

Our members of Parliament have before them a proposal for a new law: any death resulting from a reckless breach of a work health and safety duty should raise the prospect of 20 years in jail or a fine of $1 million.

There are some pretty simple issues that are raised: one death is too many, and our industry is already subjected to a high degree of red tape.

They are simple concerns but don’t provide an answer. Instead, Master Builders SA looked to whether the proposal might reduce workplace deaths – and whether this law is the best way to do it.

Current offences and penalties The Work Health and Safety Act 2012 outlines current offences and penalties, and it clearly makes an effort to match the severity of the breach in question to penalties, reflecting the degree of control and responsibility of the offender.

For example, a Category 1 breach occurs when a body corporate or a person carrying on a business or undertaking (PCBU) is reckless as to the risk of death, serious injury or illness to a person who is owed a health and safety duty under the Act. A body corporate found guilty is subject to a $3 million fine; a PCBU can be found guilty of the same and faces a penalty of $600,000, five years’ imprisonment of both. Others who have breached that duty can be fined $300,000 or imprisoned for five years.

Lesser offences are provided where there is no recklessness, or where there is no risk of injury.

These penalties recognise that people should be penalized for failing to do all they can do to prevent injuries or deaths. The legislation effectively identifies that there are things within the control of those on worksites for which they should be held responsible, whether the controlling entity be a body corporate or person carrying on a business undertaking, an officer of a body corporate or an employee.

It also provides recognition that there are some elements of a construction site that are not within the control of the body corporate, the officers of that body corporate and the peers of workers on the site.

Where a worker suffers an injury because of their own carelessness or failure to heed lawful instructions as delivered by a body corporate or its officers, an offence presently only occurs where there is a reckless attitude toward that risk or where a breach can be identified. The current legislation does not introduce a penalty in a situation where all systems and practices are geared towards preventing an injury but those SA BUILDER JUNE – JULY 2016

The proponent of the Bill, the Hon. Tammy Franks MLC, argues the new law is required to ensure “that culpable employers are held responsible for their actions” and that employers “take seriously the work health and safety of their employees”. The proposed laws are needed to provide a new balance because “We have many carrots in our system but we do need a few sticks”, she told Parliament in May 2015 when unveiling her proposal.

Industry has made a significant investment in safety systems and specialized employees – a sure sign it is taking its responsibility s eriously. Moreover, there is a rising concern that the presence of competing State and Federal safety regulators may be introducing additional risks for the industry as it forces a focus on compliance rather than a true understanding of risk and protection.

The current laws impose a $3 million penalty based on the breach, not on a death – a significantly pointy stick.

Available evidence shows industry’s focus on improving its work health and safety culture is having an impact. Statistics compiled by the national safety regulator, Safe Work Australia, show workplace fatalities have fallen 25 per cent between 2010 and 2014. Deaths not on public roads fell 23 per cent over this same period, capturing a clear sign that industry is responding to existing provisions and that response is bearing significant results.

Comparative figures from New Zealand show a 23 per cent increase in workplace fatalities and a 29 per cent of fatalities not on public roads. Australia’s approach is clearly successful and recording ongoing improvement.

The question must then be asked whether South Australia has a specific issue that demands legislative change. Available evidence from Safe Work Australia and State regulator SafeWork SA provides no such support.

South Australia recorded 14 traumatic workplace deaths not on public roads in 2010 and 16 in 2011. Since 2012, the year in which the current penalty and policing system was being debated and introduced, the number of deaths have fallen significantly: 7 in 2012, 11 in 2013 and 7 in 2014.

Queensland is the only other state to record a similar step-change over this same period.

Although South Australia’s incidence rate per 1000 employees over the past five years returns a result around the Australian average, our superior performance since 2012 now sees the State boasting the third-lowest rate of fatalities per 1000 employees across the nation.

This clearly reflects industry’s improvement in adopting the 2012 amendments and their very effectiveness.

In short, all available evidence shows South Australian industry is responding positively to the current provisions and fatalities are falling at a rate to be commended on both a national and international scale.

Unless there is a clear benefit to be gained from the proposed legislation, we believe the Bill, if enacted, is more likely to halt the success currently being experienced at reducing workplace fatalities.

27

Legal Elements of the proposed legislation

Liability at home

The Bill being considered by the Committee creates an offence of industrial manslaughter for employers with three elements: • An employer breaching a duty imposed by Part 2 Division 2 pertaining to an employer’s primary duty to provide a safe workplace under appropriate direction; • An employer with actual or objective knowledge, or reckless, as to the substantial risk of serious harm to a person resulting from the breach; and • The breach causing the death or a person, regardless of whether the person is an employee or the death occurred in a workplace.

Natural persons face 20 years’ imprisonment and corporate entities face a maximum $1 million penalty.

Under the provisions of the Bill, officers face a separate test requiring an assessment of whether they possess actual or an imputed authority with conduct that breaches a duty under Part 2 Division 2. The officer must also have actually or objectively known, or been reckless as to whether the behavior behind the breach would create a substantial risk.

That risk must also have caused the death of a person, regardless of whether the death occurs in a workplace or is an employee. A maximum penalty of 20 years’ imprisonment is provided.

The Bill provides that an employer is to be held liable and possibly imprisoned where a breach of a duty results in a death, regardless of whether that death is on site or whether it is that of an employee.

It does not limit the scope of the Bill to specific workplaces or employees – and thereby unintentionally opens a broad front.

As noted by a member responsible for a long-standing business with more than 50 employees, someone employing domestic help can be jailed for 20 years for ignoring a frayed iron cord, leading to electrocution.

It may also capture those undertaking a hobby, Unincorporated Associations, and even Government bodies and the public officers that represent them.

But it potentially stretches much further.

The death can relate to someone not employed and therefore not under the control of the officers and bodies corporate being charged – therefore making them liable for an undefined class of people not subject to an employment agreement or the direction that flows from that agreement.

An employer therefore gains an unlimited liability by virtue of their role as an employer.

The Bill also discards the need for a link to a worksite under control of a body corporate or officer. Employers need not control a site – instead they are responsible for anything that can be forseen with a link to the employer.

This raises particular concerns in the building and construction industry where multiple employers and entities share the same worksite on a daily basis. Parties sharing the site should be made aware of their joint responsibility but may all be held liable under the proposed provisions because their lack of knowledge of the breach in question is construed as reckless.

Generally the imposition of criminal penalties would be reserved for circumstances and legislative provisions that are clearly defined by a connection to the offender. Master Builders SA believes this Bill ignores those conventions and imposes criminal liability for an undefined impact.

Comparing the current and proposed offences The Bill proposes nothing less than a complete rewrite of how risk is assessed and managed in all workplaces, including building sites.

The proposed amendment requires an assessment of risk and processes only after a fatality occurs, effectively importing an investigative technique into the judicial process, and giving rise to a hindsight view of processes and procedures not necessarily implied in the primary offences in the current Act. It provides a narrower scope by limiting its attention to the primary duty of care – which is already covered by existing offences – whereas existing offences also include breaches of duties in specific workplaces under Division 3 and the duties of officers, workers and other persons under Division 4. Effectively, it sets a higher standard and penalty for a breach after the fact without providing for an assessment of the systems or processes employed to mitigate the risk at the heart of the offence.

The proposed Bill also appears to extend liability far beyond current expectations. The offence is no longer limited to those spaces within the control of an employer, an officer of an employer or a worker; instead, it applies to all deaths resulting from a breach, regardless of whether employed or on a worksite controlled by the alleged offender.

Practical shortcomings of the Bill Only an employer or its officers can be found guilty of the crime of industrial manslaughter. This terminology is at odds with the remainder of the Bill and thus introduces the potential for greater uncertainty.

The Bill also fails to recognize the role played by employees in a team environment or the contribution of employee error.

If, for example, a fatality occurred as a result of an employee ignoring employer advice and instruction while in a situation of shared responsibility, there is a possibility that a body corporate and its officers may be found guilty of this offence despite doing all they could to prevent that same event. There is also a distinct possibility that an employer might provide the best safety system available – and yet be held liable because he, she or it failed to account for an employee ignoring basic safety instructions and protections.

Employee errors occur. This Bill turns a blind eye to that reality.

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Additional considerations The current penalty regime imposes a maximum $3 million fine or five years’ imprisonment for those parties who have breached a duty and been reckless as to that breach.

The full extent of those penalties, introduced in the 2012 review, have not been tested. Nor have they been shown or identified as exhibiting shortcomings that require legislative repair. The provisions for imprisonment have not, to the knowledge of Master Builders SA, been relied upon in sentencing under the Act. The current Act also provides for the imposition of enforceable undertakings – a powerful penalty that has only recently been relied upon by the Courts.

We are yet to see a need for greater penalties, especially when the existing penalties remain untested.

Members have also expressed frustration that they are now spending more time on the paperwork associated with risk and safety rather than assessing the actual risks likely to threaten safety.

The introduction of a crime of industrial manslaughter with jail terms for the death of an individual of an undefined class will likely accelerate this practice and, somewhat perversely, result in more attention on paperwork and less on safety.

Master Builders SA firmly believes these resources would be better spent focusing on better conditions and systems rather than investing in additional compliance activities.

SA BUILDER JUNE – JULY 2016

Legal

Senior industry representatives have also raised a need for an improved safety culture across the industry rather than reacting to one or two isolated – but tragic – events. Those entering the industry should have full WHS accreditation, leading to growing awareness of safety requirements and the need to look after themselves and peers.

Apprentices and trainees would benefit from a formal program as part of their training, and this requirement should form a licensing prerequisite.

Conclusions South Australia’s construction industry can be dangerous and yet the State is now among the best performers when it comes to low levels of fatalities. This can be improved through improvements to safety education for those most at risk, and Master Builders SA supports measures to improve the performance of the sector; more importantly, we support measures to reduce fatalities and injuries.

In the opinion of the industry, this Bill will punish employers who are linked to a death – but not necessarily those who have the power to control the circumstances leading to that death. Moreover, it is proposing a paradigm shift in terms of risk assessment at a time when the current system is showing credible signs of success in reducing fatalities without its penalties being fully tested.

SA BUILDER JUNE – JULY 2016

There are also significant concerns about the unintended consequences of the Bill in its current form, with a particular concern that it imposes a dangerous liability on householders, and opens all businesses to almost unlimited liability while not addressing the silence on employee contributions to breaches and fatalities.

Perhaps most importantly, Master Builders SA is concerned that this Bill fails to recognize alternative means of improving safety and reducing workplace deaths. This is a shift of culture that must start with those entering the workforce today, not the employers likely to be jailed for circumstances beyond their control for the next 20 years.

This Bill risks introducing a new layer of paper, distraction and bureaucracy when employers should be focused on building, building jobs, and building a culture of safety.

Master Builders SA will be appearing before the Parliamentary Committee on August 4, 2016.

(This is an edited version of a submission made to the Parliamentary Committee.)

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Legal

PETER MACKS

Macks Advisory

Legislation comes into effect in November to protect SMEs against unfair contracts, protection previously available only to consumers.

SA Business coaching is dispelling another current worry to many SA’s SMEs, fear they’ll be threatened by Free Trade Agreements (FTAs).

Contract protection The new legislation will allow courts to void low level contracts judged to put unfair pressures on SMEs. This greater protection means all parties will need to be more careful in considering their obligations when drafting and negotiating contract terms than previously.

Changes to the law have arisen from a history of small businesses being held to ransom in various ways by larger companies – for example by bullying in contract negotiations.

However, the prospect of balanced negotiations would appear now tilted a little more favourably towards SMEs, which will be given considerably more legal muscle and bargaining power than they’ve had in the past.

Soon, the days will be gone when small businesses had to accept unfair contract terms simply to maintain cash flow.

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FTA coaching available The federal government has allocated a $120,000 grant to Business SA to coach SME owners in accessing foreign markets governed by Free Trade Agreements (FTAs), especially those agreements to which Australia is a signatory.

These include massive markets in China, Japan and Korea.

The training is also aimed to increase understanding by SME directors of how FTAs how can benefit their businesses.

As a business owner or operator, are you eligible for this coaching?

You don’t need to be a registered member.

For more information, contact Macks Advisory on 08 8231 3323 or visit our office at Level 8 West Wing, 50 Grenfell Street, Adelaide SA 5000.

Disclaimer: The information contained in this article is general information and does not constitute legal advice.

Nothing in this articlee is or purports to be advice. If you do need advice, then you ought to seek and obtain appropriate personal professional advice based on your personal circumstance

SA BUILDER JUNE – JULY 2016

Legal

JOHN RAU,

Deputy Premier

Upper limit for Minor Civil matters to be reduced The Government has introduced legislation to reduce the upper limit for Minor Civil matters in the Magistrates Court to $12,000.

The Office of Crime Statistics and Research analysed the effects of an amendment to the Magistrates Court Act 1991 made in 2012 to increase the upper limit to $25,000 and recommended the limit be reduced.

Matters such as small debt recovery, nuisance and neighbourhood disputes, are dealt with in the minor civil matters list, where there is minimal formality and parties are generally not entitled to legal representation.

“The Minor Civil jurisdiction is about finding the right balance to allow minor civil disputes to be litigated in an informal and cost effective way. This increases access to justice”, Mr Rau said.

SA BUILDER JUNE – JULY 2016

“The Government has been closely monitoring the $25,000 limit since its implementation. The OCSAR Report shows that this limit is too high.

“The $12,000 limit will ensure that South Australians still have an informal and cost effective means of litigating minor civil disputes”, said Mr Rau. This scheme is designed to improve access to justice for small claims, whereby people can agitate civil disputes without the fear of being bogged down in legal costs.

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SEAN RICHTER,

Legal

Consultant MBA SA Legal

The impact of family violence in the workplace There is something particularly endearing about watching two people that work for you connect on a personal level, start a relationship, go through the courting process and ultimately have one of those weddings where the majority guests are the people that work with both of them.

Over my time, in a variety of different organisations, I have seen my work colleagues pair up, get married have children and unfortunately, in some cases, get divorced.

Where co-workers are in a relationship that fails, the ramifications of that failure are not confined to the two people involved in the relationship. It unfortunately can affect the whole of the workplace and is something that managers need to be able to handle with sensitivity.

Where a relationship between co-workers fails and there are allegations of violence, this creates additional strain on the workplace. Violence has become a hot issue in Australia in recent years. While violence has probably existed as long as people have been in relationships with one another, its existence is now openly acknowledged and an issue which governments of all persuasions consider to be significant, and which needs to be addressed at the highest levels.

In recognition of the seriousness of family violence, many industrial instruments at both both the State and Federal level have been, and will be, updated to include specific leave provisions for those affected by family violence.

The most recent Victorian Public Service Agreement includes 20 days a year of paid leave for victims of family violence, and it is expected that same leave provision will apply when agreements are struck for teachers and nurses in that State.

The South Australian government is looking at following this pattern by providing 15 days of family violence leave for its public servants and has made it mandatory for government departments to obtain “White Ribbon” workplace accreditation.

The Queensland government is planning to provide its employees with 10 days leave each year for victims of family violence.

In federal politics, the ALP has pledged that paid family and family violence leave will become a universal workplace right if a labour government is installed into power.

Under the ALP policy, which was revealed on White Ribbon Day last year, the ALP would amend the National Employment Standards to include five days of paid family violence leave for weekly hire employees, with five days of unpaid leave for casual employees.

As part of its four yearly review of modern awards, the ACTU is applying to the Fair Work Commission for the inclusion of 10 days paid family violence leave each year in modern awards, which employees could use for purposes including attending court and related appointments, seeking legal advice and making new living arrangements.

The CFMEU claims to have negotiated 860 agreements, which already include provisions for paid family violence leave, covering almost 2 million workers.

While at the present time, clauses providing for paid family violence leave are generally applicable to public servants and other government employees, it is an issue that all employers must be prepared to deal with when it arises in their workplace.

Recently, the Fair Work Commission was called to determine an application for unfair dismissal, which was brought by a young woman who was terminated from her employment after she had obtained an intervention order against her husband, who also worked at the same workplace.

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That intervention order, which recognised that the parties to the order worked the same workplace, was modified so that they could be within one another’s vicinity, but the former husband was restricted from approaching or remaining within 3 metres of the former wife.

On her return to work, the female employee was told that both employees couldn’t continue to work in the same office, and that management wasn’t prepared to dismiss her partner. The female employee was terminated from her employment. Commissioner Roe was highly critical of the actions of the employer and said that it “reinforces the message that it was the victim of family violence who had to be removed from the workplace, not the man”.

While the Commission accepted that there are limits to the extent which an employer can be expected to accommodate the private lives of employees, Commissioner Roe was critical that the employer had failed to explore available options or discuss the issues over a reasonable period of time with the people affected. Commissioner Roe ordered the maximum compensation possible (26 weeks pay – even though she had only been employed at the company for seven and half months), because there had been no misconduct by the employee.

Only a generation ago, when women got married, they were expected to resign from their employment. I don’t think any of us would countenance that approach in the modern workforce. Similarly, where someone is the subject of family violence from a co-worker it would seem equally inappropriate that their employer should expect that they would leave.

If, as an employer, you become aware of issues of family violence that may impact your employees, you should first talk to those affected about how these issues may be mitigated to ensure a safe and comfortable work environment for everyone. As with all difficult employment situations, the best approach is to pause, discuss, consult and see if there are ways in which the difficulty can be accommodated within the workplace.

The staff at MBA SA Legal are always available to help in structuring solutions in the workplace which will be effective, workable and fair.

Moghimi v Eliana Construction and Development Group Pty Ltd [2015] FWC 4864.

The employer unsuccessfully appealed the decision [2015] FWCFB 7476.

SA BUILDER JUNE – JULY 2016

JOHN RAU,

Industrial Relations

Deputy Premier

Industrial Relations Consultative Council kicks off The Industrial Relations Consultative Council has now met for the first time.

The Council replaces the SafeWork SA Advisory Council, the Industrial Relations Advisory Committee and the Asbestos Advisory Committee to streamline consultation with relevant groups from both business and trade union sectors, on important issues about industrial relations and workplace health and safety in South Australia.

The Council also will advise the Minister and SafeWork SA on implementing policies and legislative issues about these matters.

The Council, which was established by the Statutes Amendment (Industrial Relations Consultative Council) Act 2015 on 19 November, 2015, consists of 12 members who represent the interests of Government, Local Government, key business organisations and unions in South Australia and is chaired by the Minister for Industrial Relations.

Mr Rau said, “The Council also have the power to establish committees to consider a specific issue or range of issues.

“I expect the Council to utilise the new provisions to bring together a broader range of people with the knowledge and experience relevant to the issues that the Committee is established to address.”

The members of the Council are: • • • • • • • • • • • •

Erma Ranieri, Commissioner for Public Sector Employment Josie Barbaro, Public Services Association of SA Trevor Evans, Australian Hotels Association (SA) David Gray, United Voice Clive Starr, Australian Industry Group Elizabeth Dabars, Australian Nursing and Midwifery Federation Hannah Treloar, Business SA Jessica Rogers, Communications, Electrical and Plumbing Union Phil Harrison, Local Government Association of South Australia Peter Lamps, Australian Worker’s Union Sarah Hills, South Australian Wine Industry Association Monique Chettle, Shop, Distributive and Allied Employee’s Association

The full functions of the Council are outlined in the Act.

WILHELM HARNISCH,

CEO, MBA Australia

Industry and the community lose over ABCC vote Master Builders Australia is deeply disappointed, but not surprised that the Senate has once again voted down the ABCC Bills.

“Master Builders, despite the defeat of the Bills, will continue its campaign for the return of the tough cop on the beat,” Wilhelm Harnisch said.

“The return of the ABCC is fundamental in ridding the construction industry of the building unions ability ply their trade of fear, intimidation and bullying and to impose special deals on contractors and subcontractors where the community is punished by having to pay up to 30% more for schools and hospitals”.

“The case for the return of the ABCC is irrefutable”.

“The building unions are defending the indefensible. They cannot defend the ingrained and systemic culture of intimidation that allows corruption and criminality to flourish, they cannot defend the verbal abuse of women on construction sites and they cannot defend the community paying up to 30 per cent more for schools, hospitals, roads and other things that they need”.

“All the ABCC Bills require is for the building unions and their officials to behave like normal people. Nothing more, nothing less”.

SA BUILDER JUNE – JULY 2016

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ADVERTORIAL

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Unlike other general insurance brokers, all profits made by our business are returned directly back to the association, who in turn re-invest these funds into support services such as training, OH&S, legal advice and apprenticeship schemes, al initiatives that support your own building and construction industry.

By being a leading broker in this sphere, MBAIS uses its industry muscle to leverage great ‘value for money’ insurance arrangements with preferred underwriters, ultimately ensuring that premiums are kept low, yet policy coverage is kept broad. Our customer’s claims are always well managed because our insurers cherish the importance of their relationship with MBAIS. We currently provide insurance related services to over 8,000 members nationally, and this number continues to grow strongly each year.

We look after a broad spectrum of members – large and small, residential or commercial, builder or supplier etc. The bulk of our business is generated through referrals from our customers who appreciate the quality and price of the products we recommend to them.

Unlike several of our competitors, who have retreated from specialising in the building and construction industry in recent years, we are continuing to strengthen our specialist expertise in this often complex insurance market. We have also streamlined a number of our internal and external processes in order to make our operation faster and more efficient, providing our customers with a professional ‘can do’ service.

Working closely with our MBASA colleagues allows us to offer a complete ‘business services’ offering, which is more than just insurance broking. This is a unique combination of services, which you’ll only receive if you appoint MBAIS (SA) as your broker.

For residential builders, our dedicated building indemnity team comprises 25+ staff with over 75 years experience in financial underwriting and claims management issues. We are also the only broker who offers you the capability of issuing your own QBE job certificates 24/7, via www.mbais.com.au For commercial builders, we offer the complete suite of relevant covers, including, motor fleet, professional indemnity, management liability and surety bonds. Our dedicated MBAIS construction works and third party liability wording provides extra coverage which can’t be purchased elsewhere in the Australian market.

Approach / Philosophy Our approach focuses on providing high levels of service and ‘value for money’ products. We have a pro-active team of experienced and motivated staff, who are trained to understand the issues relevant to your business, and who can design an insurance program that is appropriate for your needs. Importantly, when you have a claim, our experts will help you lodge the claim, and then work with you to ensure that you gain peace of mind throughout the entire settlement process.

We only place your business with insurers who offer the best overall package of long-term financial stability, broad coverage, competitive and consistent premiums, and a proven claims payment record. You can be assured when appointing MBAIS (SA) as your broker, we only use reputable Insurers who can be relied upon.

Insurance Broking Services MBAIS takes service to another level in the manner in which we care for our customers. Our intimate understanding of the building and construction industry has previously led to the development of many innovative and exclusive insurance solutions tailored specifically for the industry. The value MBAIS brings to your business and the types of services we offer is multifaceted as summarised below:

For more information contact:

PHONE: 1800 150 888 WEBSITE: WWW.MBAIS.COM.AU

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SA BUILDER JUNE – JULY 2016

“

… I don’t think we could have got a better product for this particular project than Fujitsu.

”

- Andrew Stewart, Managing Director of Rival Air.

FORM MEETS

FUNCTION

With a stunning design and sought after location between Victoria Street and the Yarra River, Green Square Apartments is one of the hottest new developments in Melbourne.

HVAC mechanical contractor, Rival Air, needed a unique cooling and heating solution that combined units that matched the high-end finish of the apartments without condensers in sight or earshot of the residential area.

This presented a challenge with the distance between some units and condensers being up to 10 floors. Working with the engineers and architects, Rival Air came up with a solution in conjunction with Fujitsu to use varying lengths of refrigerant pipe runs.

Fujitsu’s solution included 165 indoor units connected to 42 Airstage J-II Series heat pump outdoor units, 464 wall mounted split systems and 8 ducted systems offering various refrigerant pipe runs to meet the requirements of the project.

To find out how Fujitsu can help you with your project, contact your Business Development Manager or call 1300 882 201.

BIS Shrapnel,

March Economic Forecasting Conference

Planning

BIS Shrapnel reports major structural change to Australian economy The Australian economy is commencing a major structural change with the unwinding of a ten year resources boom that will be transition into slow growth. It is important to understand that the economy is not on trend but rather slowly transitioning into structural change. The exploration phase of the resources boom that provided ten years of strong investment stimulus to growth is being offset by growth in production.

During this period mining driven construction rose eightfold but now mining construction has come off twenty five percent of an estimated seventy percent decline.

The resource bust is a supply not a demand problem as simply supply has caught up to demand and excess capacity and supply will take years to absorb, keeping prices low. The impact will detract one to one and half percent from growth over the next three years. The impact has been lessened because Australia is a high quality low cost producer and gas projects are now coming on line. The result is zero net impact with falling investment offset by strong growth in exports and production.

Strong resources export and production growth have averted an economic recession but miners with high costs of production will be under pressure to survive, government revenue will decrease as will the balance of payments and employment opportunities. However, it is good news for slow sustainable growth.

The saving grace for the Australian economy will be the lower dollar that will assist structural change replacing mining as the driver of growth. The first industries to benefit from the lower dollar will be education and tourism and will gradually spread to agriculture, finance, business services, manufacturing and eventually broadening through the non-mining sectors.

Nationally residential building has been strong and set to peak as the cycle runs its courses with infrastructure spending picking up financed by asset sales. Nationally by June 2017 dwelling commencements are predicted to total 187,150 from a high in the March quarter or 2016 of 221,650 and in South Australia down to 9,150 commencements in June 2017 from a high of 10,800 in the March quarter of 2016.

Non-residential building will show limited growth nationally but South Australia during the forecast period to June 2017 will enjoy steady growth on the back of infrastructure projects that are transport focussed.

Employment will slowly recover, as with the recent defence spending announcements for South Australia, but it will take years for non-mining business investment to build momentum. Inflation will be contained which will reflect historically low interest rates while wages and household income growth will be weak. Consumer spending will be the mainstay of growth with low income growth and an easing of savings rate.

Business is not ready to invest reflected in weak demand and low profits and an excess capacity as business stays in cost containment mode. The continuing low interest rates will not bring forward investment until increased demand and the absorption of the excess capacity.

Recovery will commence in the export and import competing industries and gradually gain momentum to broaden and spark investment.

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The RBA has again reduced the interest rate in early May and will keep cash rates low as the US bond and cash rates begin to rise. With contained inflation rates and wage inflation falling the financial environment predictable will keep interest rates low with the Australian dollar being very competitive at 58-70 cents.

The Australian economy is in a stage of major structural change from the boom mining exploration and mine development phase to a sustainable but lower growth production phase. The economy will take years to restructure after a period of unstainable growth but as tourism and education will lead the restructure other industries will commence to benefit and confidence will grow. Investment and growth drives confidence and as the restructure gets underway confidence and investment will grow. Confidence does not drive the restructure, increased investment and gradual growth rather these conditions will stimulate confidence that will boost further investment and business activity.

For further information or to subscribe to BIS Shrapnel’s extensive range of building and construction and economic reports contact Robert Mellor at rmellor@bis.com.au or visit the web site at www.bis.com.au

SA BUILDER JUNE – JULY 2016

Minister Stephen Mullighan,

Minister for Transport and Infrastructure,Minister for Housing and Urban Development

Planning

More SA jobs as work starts on $620m Darlington Upgrade

Hundreds of South Australians are set to gain work on the next stage of the North-South Corridor, with the start of major works on the $620 million Darlington Upgrade Project.

Federal Major Projects Minister Paul Fletcher said the project would support about 370 jobs a year during major construction, which started today.

“The 3.3 kilometre upgrade will deliver a non-stop roadway between the Tonsley Precinct and the Southern Expressway, bypassing five signalised intersections and providing service road links for local traffic,” Mr Fletcher said.

“The project also includes a free-flowing interchange at the Southern Expressway. Moving freight and commuters more efficiently along the North-South Corridor will drive economic growth and boost productivity to help build the South Australian economy.

“Th is project will also make Adelaide an even better place to live and work, by improving access to the growing southern suburbs and Fleurieu Peninsula.”

The major contract was awarded to Gateway South, a joint venture between Fulton Hogan and Laing O’Rourke, in December, when the Australian and South Australian Governments announced the project would be extended by one kilometre.

SA BUILDER JUNE – JULY 2016

South Australian Transport and Infrastructure Minister Stephen Mullighan said the project was being conducted in line with the State Government’s Industry Participation Policy, meaning local South Australian businesses and workers will benefit most from this major project.

“Gateway South is committed to the South Australian Industry Participation Policy and will provide full, fair and reasonable opportunities for industry to participate in the Darlington Upgrade Project,” Mr Mullighan said.

“This project is another example of the Australian and South Australian Government working together to create jobs and grow the South Australian economy by investing in infrastructure.

“We are also continuing to work together on a plan to extend the Tonsley train line to the Flinders Medical Centre.”

The Australian Government will contribute $496 million for the Darlington Upgrade Project and the State Government $124 million. The Darlington Upgrade Project is expected to be completed by the end of 2018.

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Minister Stephen Mullighan,

Minister for Transport and Infrastructure,Minister for Housing and Urban Development

Planning

Morphettville to be redeveloped in major urban renewal project Eleven hectares of Morphettville with a high concentration of public housing will be rejuvenated in a project that will create jobs and generate an estimated $44 million of investment over the next five years.

The Morphettville Neighbourhood Renewal Project will renew the area to create a mixture of new and renovated Housing Trust homes and new housing allotments, as well as new tree plantings and streetscapes.

Based on preliminary plans, the project will see the creation of: • 177 new houses on new allotments for sale, including 30 new affordable houses or land for sale • 24 renovated Housing Trust homes for sale • 45 new or upgraded homes to be retained by the Housing Trust.

The area already includes a number of privately owned homes.

Housing and Urban development Minister Stephen Mullighan said the project was part of the Renewing our Streets and Suburbs initiative which replaces old Housing Trust homes to create better quality social housing and increase housing choice and affordability.

“Th is project will not only provide new and improved homes for Housing Trust tenants and breathe new life into the area, it will also create a boost for the construction industry,” Mr Mullighan said.

“The work is estimated to support about 54 jobs a year and generate an estimated $44 million in private and public investment over five years.”

Mr Mullighan said changing demographics meant that there was a greater need for one and two bedroom homes rather than larger homes of previous generations.

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“We have an opportunity to replace large groups of outdated Housing Trust homes with additional new homes in sought-after suburbs, locating people closer to services such as transport and schools,” he said.

“The accelerated Better Neighbourhoods program has been successful in improving suburbs and creating better integrated and sustainable living environments. It has upgraded streets and neighbourhoods and provided opportunities for affordable home ownership.”

The Renewing our Streets and Suburbs initiative is renewing public housing, while providing important stimulus for the South Australian economy through: • the renewal of 4500 pre-1968 Housing Trust homes within 10km of the city by 2020 • the delivery of 1000 new Housing Trust homes in 1000 days • the transfer of 5000 Housing Trust homes to be managed by community housing providers Work in the Morphettville Neighbourhood Renewal Project is expected to begin in late 2016 and be completed by the end of 2020.

Once complete, the area will comprise about 305 homes, including existing private residences.

SA BUILDER JUNE – JULY 2016

Ian Markos,

CEO, Master Builders SA

Planning

Valuable planning reforms passed South Australia’s new planning system promises to cut complexities faced by households wanting to build – but they still face the costs of a frustrated key reform.

Master Builders SA welcomed the open engagement undertaken by Deputy Premier John Rau, his office and his department and the good will with which Parliament debated the proposed laws at length.

Chief Executive Officer Ian Markos said industry and householders would benefit from faster assessment pathways based on a reduced rulebook available through an online system – three key reforms that could, if funded appropriately, truly change the way people interact with the planning system.

However, he said the ongoing presence of elected councillors on assessment panels could produce further delays and confusion.

“Right from the start, experts and those engaged in the assessment process agreed that the removal of elected councillors would deliver a stronger system that focused on applying the community’s views, not building a platform to revisit those views for every available project,” he said.

SA BUILDER JUNE – JULY 2016

“The new Bill limits that to one councillor – certainly an improvement, but falling short of what many acknowledged was ideal in the interests of improving the system.”

Mr Markos said the introduction of an urban growth boundary – passed only after Independent member John Darley MLC proposed amendments on a second vote – would certainly impact economic development and choice.

“The mechanism is there for regular reviews of this boundary. We have to hope that they won’t be so infrequent as to hold back investment, and that projects won’t frustrated by a vocal minority,” he said.

“Mr Rau has committed to engaging deeply with industry to ensure the implementation of the new system works smoothly. We are very much looking forward to that for the benefit of all South Australians.”

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Safety, Quality & Environment

Is your site secure?

Rooftopping appears to be the latest thrill-seeking craze.

It was highlighted by the April arrest of a thrill-seeker who allegedly broke into city construction sites and took photos while hanging on cranes, sharing them on the internet.

Site security has been an ongoing concern for the 18 years I have been in this industry.

You may think that any unauthorised person suffering an injury on your site has to bear responsibility for their own injuries.

Hold that thought, the current Work Health and Safety legislation makes it your issue.

The Regulations state that any person in management or control of a work site is required to ensure it be, so far as is reasonably practicable, secure from unauthorised access. And the Act states that a person conducting a business or undertaking must ensure, so far as is reasonably practicable, that the health and safety of OTHER persons is not put at risk from work carried out as part of the conduct of the business.

This isn’t limited to commercial construction – it includes all residential sites and any workplace where construction work is being carried out. This includes residential building works.

There is a qualification: “so far as reasonably practicable”.

The Act defines that term as: that which is, or was at a particular time, reasonably able to be done in relation to ensuring health and safety, taking into account and weighing up all relevant matters including—the likelihood of the hazard or the risk concerned occurring; andthe degree of harm that might result from the hazard or the risk; and what the person concerned knows, or ought reasonably to know, about—the hazard or the risk; andways of eliminating or minimising the risk; and the availability and suitability of ways to eliminate or minimise the risk; and after assessing the extent of the risk and the available ways of eliminating or minimising the risk, the cost associated with available ways of eliminating or minimising the risk, including whether the cost is grossly disproportionate to the risk.

A person with management or control (PCBU) may decide it is not reasonably practicable to secure the site or that security measures are not required. However, they must think about the risks of unauthorised access and the likelihood that unauthorised access will take place.

1. The decision on securing the site is risk based. You MUST have regard for all relevant matters including: 2. Risks to health and safety arising from unauthorised access to the workplace. You will need to consider hazards including open penetrations, voids, excavations / trenches, uncapped reo bars, live edges, mobile plant, equipment, temporary services, elevated work areas, substances – the list is endless.

3. General risks including slips, trips, falls, falls from height, cuts, tears, falling objects, electrocution, engulfment.

4. The likelihood of unauthorised access occurring. You will need to think about the proximity of the workplace to places frequented by children, including schools, parks and shopping precincts. High traffic areas are much more likely to be accessed.

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A good starting point is to ask yourself whether unauthorised access would present a risk to health and safety? Obviously by the very nature of construction work your consideration must be revisited to address ever-changing hazards, risks, consequences and likelihood of such an event occurring throughout the life of the construction work.

For some sites it is clear that security of the workplace is required.

Think of the residential building site, where a two storey townhouse is under construction. It is in close proximity to schools or shopping centre.

It is reasonable to conclude children, youth or others may inadvertently or purposely access the site. Given the nature of the build and the stage of construction many hazards are present and the risk of injury or death is high. In this example the construction site should be protected from unauthorised access.

To balance the example consider a large farm shed construction, to be constructed in the middle of a farm paddock. The workplace is not in the vicinity of any public facilities and the closest neighbour is kilometres away. No children occupy the residence, nor are visitors a regular occurrence. Farm hands and farmer also have no reason to be in the area of the construction work until completion. Hazards and risks are minimal with no open penetrations, excavations, risk of falls etc present. With low likelihood of unauthorised access and low risk if access does occur it may be determined that protection of the site is not required.

The Regulations make it clear you have to pay attention to ensure site are “secured from unauthorised access”. Bunting or flagging would not be considered secure; solid fencing or hoarding might be. The type of protection will vary depending on the risk assessment made.

Site security is ever changing. A site may have fencing whilst structure is built, once at lock up stage the fence may be removed as the building itself can be locked and restrict access to internal construction works still underway.

In conclusion remember that there are many reasons why unauthorised access may or does occur. It’s not just limited to those seeking gains by undertaking criminal activities Ask yourself whether it is likely someone could enter a site without authorisation and, where it does occur, what are the hazards and risks to their health and safety?

If you need assistance with this matter please contact Master Builders SA SQE department

SA BUILDER JUNE – JULY 2016

JOHN RAU, Deputy Premier

Safety, Quality & Environment

New look to SafeWork SA to help businesses make workplaces safer A new look SafeWork SA will provide tailored support and education services to help employers meet their responsibilities.

Industrial Relations Minister John Rau said the structural reforms at SafeWork SA follow the overhaul of the State’s workers compensation system and listening to industry, business organisations, and unions.

“It was clear that we could not just fix the system that looks after people when they were injured, we also needed to fix the system that prevents people from being injured in the first place,” Mr Rau said.

“Essentially, SafeWork SA will now go beyond enforcing work health and safety laws and will comprise two clear operational units – a regulator and an educator.”

The regulator will be made up of industry teams staffed by inspectors, with a focus on ensuring compliance with work health and safety laws and taking suitable enforcement action when breaches are detected.

The educator’s team of mobile work health and safety advisors, supported by customer service staff, will support and provide people with access to resources, information, licensing services and one-on-one advice.

SA BUILDER JUNE – JULY 2016

The new mobile advisory team will visit people in their workplaces and help them understand their work health and safety responsibilities.

They will also provide practical support and assistance to set-up effective systems making each workplace safer.

Mr Rau said the new workplace advisory service will not have any inspectoral powers under the Act – a really important contrast to past practice.

“It is important that employers feel comfortable about inviting an advisor from SafeWork SA into their workplace, without the fear of prosecution, to improve their systems, practices and general approach to safety,” he said.

“This is a contemporary regulatory approach that will benefit workers, employers and the South Australian community by focussing on a safer workplace for everyone.”

The new structure will be fully operational from 1 July, 2016.

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2016 NCC & Building Advisory update From the 1st of May 2016 changes to the National Construction Code come into effect with a three year review unless urgent changes are required. To assist members some of the main changes are mentioned below. Furthermore members wishing to obtain a copy of the full Australian Building Code Board NCC changes can email the Development and Technical Department at Devtech@mbasa.com.au.

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Main Changes • Moved to a three year cycle for changes • Application and General Provisions with revisions to both volumes regarding diagram , wording simplification for compliance Solutions and Performance Solutions under parts AO & 1.0 • Definition clarification for effective height, clarification has occurred with diagrams showing how to determine the lowest storey providing direct egress to a road or open space. Not including top most storey containing only heating, ventilating , lift or other equipment, water tanks or similar service units • Structural Robustness Verification , reflecting the amount of damage that can occur to a building before collapse ie 25% of building critical risk component can sustain damage before failure.

• Timber Mid Rise fire protected timber made changes to allow for new construction system like Cross Laminated Timber construction and stairway concession for same to a max height of 25metres.

• Group Number Determination made changes to multi level carparks as one fire compartment.

• Visibility in an Emergency made changes to visibility requirements in an emergency exit.

• Farm Buildings new firefighting provisions regarding industry trends to large farm buildings and concessions , noting when they are classified as class 7 and 8 buildings.

• Stairways and Ramps changes that better reflect industry issues between riser variations being 5mm between any riser but a maximum overall change of 10mm , however maximum of 190 mm riser means

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industry should be cautious to keep risers around the 185 mm mark to ensure 190 is not exceeded.

Ventilation Verification Method better allows for calculation of contamination levels for Indoor Air Quality and carbon monoxide exposures levels.

Boilers and Pressure Vessels better distinguishes between boiler and pressure vessels, including protection from heat, explosive relief and drainage.

Surveillance Units makes clarification where non appurtenant class 10a occupancies occur within the same building.

Class 10a Smoke Alarms clarifies use of alarms to each floor and including class 10a occupied area’s

New 2016 Building Advisory Notices The State Government Building Policy branch has released six new Building advisory notices this year and below is a quick summary with some comments.

01/16 Advisory Notice Building (March) This Advisory Notice provides notices advice about the withdrawal of the scheme known as the Register of House Energy Rating Assessors, The current list will be withdrawn on 30 June 2016. However the advisory note mentions in some instances, such as reference building modelling, additional qualifications may be necessary for the person to be considered appropriate for the purposes of Regulation 85 ( c ). Master Builders Association believes this good news and has had the view for a long time that more flexibility is required when it comes to energy efficiency especially where the appropriateness and accuracy of assessment methods has shown to be flawed in the past.

02/16 Advisory Notice Building (March) This Advisory Notice provides information about the energy efficiency provisions and the use of solar offsets. The Department suggests on site SA BUILDER JUNE – JULY 2016

Development and Technical

renewables are to be seen as a companion to, and not a replacement to promote longevity through good levels of building fabric in favour of engineering solutions that may only provide short-term solutions and may have limited life spans.

Master Builders Association has for some time made comment that such narrow perspective should be viewed with extreme caution because of the changing landscape in renewable energy provisions like PV’s which legislatively have to last more than 20 years like some battery technologies which are warrantied between 15 and 20 years compared with variations in building fabric, the impacts of interstitial moisture in building fabric and Poor Indoor Air Quality. Master Builders Association has been long concerned with the level of vested lobby groups and northern hemisphere centric construction techniques which have and are not reflective of the Australian temperate climatic conditions.

It appears ironic that the Department has chosen to abandon on one hand the flawed House Energy Rating register and on the other hand try and restrict innovation via use of renewable offsets, furthermore the Department has chosen to set it self up and experts by commenting on building fabric v’s renewables especially where the intent of the ABCB is to open up Alternative Solutions rather than Deemed to Satisfy. Too maintain the quarantine and single out the use of renewables is simply continuation of the poor policy direction in what should be an opened up use of varying solutions.

04/16 Application of the change in use provisionsdwelling status The purpose of this Advisory Notice is to provide advice about dwellings and whether changes to the nature and /or extent of occupation constitutes a change in use for the purposes of the Development Act 1993 and the Development Regulations 2008.

This is especially an issue where the extent of occupation changes with increasing use sharing platforms that facilitate and coordinate the occupancy/rental of a dwelling and the belief that a dwelling must be occupied for extended periods of time by the same person. Triggers mentioned in the Notice reflect length time, lease term, platforms which facilitate occupancy/rental and change of ownership arrangements. This advisory Notice has developed derived as a result of a Victorian court case.

05/16 Private Bushfire Shelters This advisory Notice provides information about private bushfire shelters, the requirements for building rules consent and the need for Councils to consider the life safety risks when reviewing their inspection policy.

Master Builders SA believes this is a safety issue and supports this initiative.

03/16 Consistency between planning and building consents

06/16 Minister’s Schedule of Construction Indices 2016/17

This advisory notice supersedes Advisory Notice Building 9/14 and provide advice relating to matters raised concerning the consistency of building rules consents issued by private certifiers with development plan consents issued by councils.

Master Builders believes it’s a genuine attempt to further clarify what continuously arises between Development Plan consents and Building Rules consents it gives examples for clarification and hopefully will alleviate this perpetual interpretive issue.

Regulation 15 and Schedule 6 of the Development Regulations 2008 providefor fees which are payable in relation to and application for Building Rules Consent these are indexed from time to time.

For member information.

Members wishing to discuss further NCC changes or Advisory notices are welcome to contact the Development and Technical Department at Devtech@mbasa.com.au or myself on bcorby@mbasa.com.au

SA BUILDER JUNE – JULY 2016

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JACOB BROAD

JULY 2015

Thankyou Master Builders Association for the nomination, after 6 months of work experience I knew I wanted to be a Carpenter, the outdoors and working within a team to create other people’s dreams was just what I wanted. I was hired through the Master Builders Group Training Scheme and my first host James Harris, provided me with a great platform in 1st Fix Carpentry. For the past 9 months I have been working with Simon and Robert Billing’s, covering a vast range of carpentry and building in which my passion has grown.

Currently studying a Cert IV in Building and Construction (Construction) through the Master Builders Association, these further studies will hold me in a good place for the future to help me become a successful builder.

Thanks again to the Master Builders Association and my field Officer Lyndon Mills, for the nomination.

Placement History: Kolen Carpentry CoT start 24/9/12–Current: Host Employer; RJ CJ & SR Billings

DAMIEN BROWNE

AUGUST 2015

I would firstly like to thank everyone at Harrold and Kite (host) and the people involved at the MBA with the apprentice awards, especially my field officer Steve Wheeler. Harrold and Kite have allowed me to learn and have a go at more than I thought I would have ever done. Being thrown in the deep end, mainly over the last year, has helped me enormously and allowing me to be undertaking work I did not think I would be able to be doing at this time in my apprenticeship.

After winning Apprentice of the year 2015 I wanted to continuously climb and grow as a carpenter. My biggest fear was my effort dropping off but I feel as though, through the feedback I have received that I have not dropped off at all. I have just recently been nominated for the GTO Apprentice of the Year and short listed for this award. It is an honour to be nominated for the MBA Apprentice of the Year award for a second year in a row.

Placement History: (only) Harrold & Kite CoT start 05/11/12–Current: Host Employer Harrold & Kite

LUKE HELMORE

SEPTEMBER 2015

I started working at the Master Builders in 2013 after I’d been completed a VET course at school. I decided to apply to the Master Builder’s Group Training as I had received positive feedback about them, I managed to have an interview with MBA then was offered a position.

I’ve been working with the same host since I started mainly doing 1st fix construction. Mastin Construction have encouraged and taught me to give things ago and to tackle task out of my comfort zone.

Once I finish my apprenticeship I plan to continue working as a carpenter and hopefully get into some more general building type work.

Placement History: Mastin Construction CoT start21/10/2013–Current: Host Employer Mastin Construction

LUKE DAVIS

OCTOBER 2015

My name is Luke Davis, currently a 4th year apprentice carpenter. My interest in the construction industry was fostered at around 12 years of age while helping my Dad with home renovations. I pursued my goal to work in building and construction by attending Marcellin Technical College to complete SACE (South Australian Certificate of Education) and also undertake certificate 1and 2 in carpentry to further my carpentry career.

After completing my school education I began working with Master Builders Association who have been a great support throughout my apprenticeship and I would like to thank them for this A.O.M. award. I would also like to thank my previous host employer Dickson’s Quality Carpentry for outstanding practical teaching and support in first fix Carpentry. My current host is Tonkin Shultz Design and Build and I have being working for them for around 9 months. I would like to thank them for teaching me and giving me the opportunity to learn many different aspects of building and construction.

I look forward to finishing my apprenticeship later this year, and using the skills I have been taught to one day start my own business.

Placement History: Dickson Quality Constructions 01/13–05/15 Tonkin Schutz Design & Build 05/15–current CoT start 08/01/13–Current: Host Employer Tonkin Schutz Design & Build

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SA BUILDER JUNE – JULY 2016

Apprentice of the Month Awards

INYANI JOSEPH

NOVEMBER 2015

Hi,My name is Inyani Martin joseph. I was born in Uganda I came to Australia with my 2 brothers and mum, I was 13 years old.

I completed High School in 2012 at Valley View Secondary School. After I completed year 12, I was interested in doing something in the construction industry.

Then at Tafe in Gills Plain. I did a bricklaying, tilling and plastering course. And the end of the course I decided to do bricklaying. Then Jason forward me to Master Builders Group Association SA as I was looking for an apprenticeship in bricklaying.

Currently I am an apprentice at Master Builders and working for Andrew Fraser at the moment. He’s helping me to achieve my dream to become a bricklayer.

In the future I would like to build more skills and continue doing bricklaying. At the moment I am enjoying every bit of it. Thanks to Master Builders Association for employing and mentoring me.

Placement History: Agnew & Fraser, Banicek Bricklaying CoT start 5/8/2013–Current: Host Employer Andrew Fraser

CAMERON BARRETT

DECEMBER 2015

Starting my apprenticeship as an 18 year old I was quite nervous but excited to learn.

Something I find very satisfying in my trade is being able to arrive at a job and have nothing but a slab and be able to leave with the main structure of the house completed. A challenging aspect is dealing with the extremes of weather 40+ degrees or raining and 10 degrees and adopting save work methods to deal with it.

I’m currently undertaking my certificate 4 at the MBA which will help me gain more experience and qualifications for future jobs or starting my own business.

I have done mostly 1st fi x for the 3 and a half years of my apprenticeship so far and intend to pursue this form of carpentry as a career. I would like to thank my current host Emmark, for providing the thoroughly enjoyable challenges that comes with 1st fi x carpentry.

Finally I would like to thank the MBASA Apprentices for giving me the opportunity and continued support.

Placement History: L & A Cailotto 02/13–08/14 Embark 01/15–current CoT start 19/02/13–Current: Host Employer Emmark

BRANDON WAIT

JANUARY 2016

My names Brandon Wait.

I started my apprenticeship in 2012 after I completed year 12 at school. I recognized carpentry was for me after I assisted builders renovating my parents’ home in 2010.

I pursued this doing work experience with my now host employer David Knight.

Once I’ve finished my apprenticeship, I plan on furthering my knowledge and becoming a contractor down the track.

I would like to thank Master Builders and David for making my goals achievable.

Placement History: Madd Construction CoT start 4/7/2012–Current: Host Employer MADD Construction

GUY HEWTON-LAMPH

FEBRUARY 2016

My name is Guy Hewton-Lamph. I am a second year apprentice carpenter working mainly in the first fi x area with a Host trainer company called Genamax, owned and run by Terry Johansen. I have always had a passion for the building and construction industry as my father and both grandfathers were carpenters, so I left school early in year 10 to pursue a career path in Carpentry. I then continued to do further study through Tafe SA and gained a Cert IV in Residential Drafting and am now currently externally studying a triple cert IV (Building, Estimating and Site Management). My future aspirations are to go out on my own one day and start up my own business.

I would like to thank the Master Builders Association S.A. Apprentices for the opportunity to have an apprenticeship through them, and the North East Vocational College for the training they provide. Also a special thanks to Steve Wheeler for giving me the apprentice of the month award and Terry Johansen for giving me the continual training and knowledge needed to develop my career in the Building and Construction industry and to one day begin my own business.

Placement History: Genamax, J&M Installations, All Carpentry Solutions, Stud Carpentry, Daniel Parry CoT start 11/08/2014–Current : Host Employer Genamax

SA BUILDER JUNE – JULY 2016

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Apprentice of the Month Awards

APPRENTICE OF THE YEAR 2016

BEN WOODALL

MARCH 2016

My name is Ben Woodall.

I am a first year apprentice carpenter working mainly in commercial carpentry. I have always been interested in carpentry as my dad is a carpenter and while I was at high school I completed a course in carpentry. I enjoy being outdoors and doing hands on work.

To me, being nominated as Apprentice of the Month means that my boss is happy with my progress, my skills are where they need to be for the level I am and that I’m working hard towards my final qualification and goals.

My goal in the distant future after completing my apprenticeship is to own my own business. I would like to continue working with my boss for a few years but ultimately in the future I would like my own business.

I would like to thank my boss Tim Hilton, MBA SA and my parents. I wouldn’t be where I am without everyone’s support.

Placement History: Tim Hilton CoT start 18/11/2014–Current: Host Employer Tim Hilton

BLAKE THOM

APRIL 2016

My name is Blake Thom, I’m a fourth year apprentice with the Master Builders Association. I would like to thank the MBA for this AOM award and for giving me the opportunity to follow my dream to be a carpenter.

Thanks also to Steve Wheeler for being my field officer and helping me through my journey, giving me guidance and answering any question I have had.

I would also like to thank Jason Pilgrim from Carpentry SA for being my host trainer for the last two and a half years. In that time I have learned so such.

I am very passionate about being in the building trade and intend to have a long and prosperous working career.

Placement History: Exclusive Carpentry Services 10/12 – 03/13 Active Bldg Developments 04/13 – 09/13 Carpenty S.A.09/13 – current CoT start 09/05/12–Current: Host Employer Carpentry S.A.

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SA BUILDER JUNE – JULY 2016

‘Master Builders SA’s

Don’t let an injury cripple your business

ability to communicate the return to work process and simplify the role and responsibilities we have as an employer meant the team walked away today feeling more confident in the return to work process.

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RED APPOINTMENTS

Ensure your interests are being protected when managing workers compensation claims Every business faces a raft of changes under the new workers’ compensation scheme launched in July 2015. But those changes also offer real benefits for businesses with 30 or more employees.

Master Builders SA’s dedicated Return to Work and Injury Management service helps you support and manage injured workers while protecting your business. We can: ✓ Provide a comprehensive Return to Work Coordinator function including administration, worker-agent meetings, medical reviews and case conferences for minor to serious claims. ✓ Manage your claims to save you time and reduce stress. ✓ Provide expert industry knowledge and advice as and when you need it. ✓ Ensure early intervention to reduce injury times and improve business outcomes. ✓ Access legal advice and direction in a timely manner due to our direct affiliation with MBA SA Legal. ✓ Offer significantly reduced fee-for-service hourly rate, or a competitive annual subscription service offering you direct access to relevant seminar series, direct training and other workshops.

Already have a Return to Work Coordinator but need further assistance? We also act as a consultancy on complex matters on a needs basis, for independent reviews or to step in when relationships with workers and service providers are breaking down.

Use our industry knowledge and experience to support your injured workers and protect your business.

For further information regarding Master Builders SA’s Return to Work and Injury Management service, please contact our Safety Quality and Environment team on 08 8211 7466 or at sqe@mbasa.com.au.

Contact Master Builders SA Safety, Quality & Environment 50 South Terrace, Adelaide SA 5000 t 08 8211 7466 www.mbasa.com.au/sqe

SAFETY QUALITY & ENVIRONMENT

Why we are seeing a Seismic Shift in the Design of Commercial Building Projects

Seismic design is in increasing demand in both Australia and New Zealand.

Recent events and changes to design standards requires that new construction projects need to be more comprehensive in terms of their safety and structural integrity to be suitably prepared for the rigours of geological movement and other environmental hazards. New Zealand, in particular, has endured a spate of devastating earthquakes in recent years. Australia, however, is not immune from seismic activity, as well as the ever- present risk of extreme weather and natural disasters.

Architects industry-wide should be aware of the statutory requirement of incorporating effective seismic design into projects that require it, as well as knowing the options available to them.

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SA BUILDER JUNE – JULY 2016

Wall & Ceiling Feature

Assessing seismic risk

Sudden Movement For a long time, people have suffered the impact of earthquakes due in part to our lack of understanding of these events. Their magnitude and unpredictability make them an incredibly difficult scenario to deal with. But while the events themselves may be unavoidable, nowadays the damage caused need not always be so extreme. As research and skills have developed in recent decades, so too has the capacity for buildings to be designed to withstand more violent movement.

Whilst specific design requirements for seismic events have long been stipulated in building codes, there has not always been sufficient awareness or understanding for measures to be adequately implemented.

If there is any upside at all of catastrophic events it tends to be the vast leaps forward in preparedness for future occurrences.

Good building practice requires the collaborations of not only the architect and engineer, but many other design professionals. Even the best calculations cannot compensate for faults during the conceptual seismic design stage. Therefore it is important for architects and engineers to collaborate closely as early as possible.

SA BUILDER JUNE – JULY 2016

The primary concern when it comes to structural design for earthquakes is the lateral force-resisting system of the building. In most cases, this involves roof and floor diaphragms for horizontal distribution, as well as shear walls and rigid frames for vertical bracing. Failure of these elements can result in major damage, including the possibility of total collapse.

Nobody argues that a building must remain structurally stable, post an earthquake event, however there is significant information available that suggests the most significant cost attributable to an earthquake stem from the fit-out and services installed within the building.

Since the different parts and materials within the building move differently under the actions of an earthquake, the connection and interaction points between them are crucial. It is necessary to allow independent movement between abutting parts within a building, thus reducing the possibility of impact or disturbance.

Naturally, the risk posed to any given structure depends on a number of factors such as its location – both in relation to tectonic movement and its proximity to cliffs, riverbanks and the like, as well as the integrity of the ground beneath.

Similarly, the amount of people affected by its failure and its importance in functioning after an earthquake – a hospital, for instance – must also be taken into account.

For those in the industry, especially those working on large publicly funded projects, it is important to be well-versed in seismic design and remain up to date with new developments.

The bottom line is that when it comes to seismic design, the architectural stakes are higher. If buildings that call for seismic requirements are not properly equipped, it could result in substantial injury or loss of life.

Seismic designs aim to place the utmost importance on occupant safety.

Even if human tragedy is avoided however, the cost to repair and rebuild whole areas is significant. The rebuilding of Christchurch, for example, has climbed to an estimated $40 billion dollar price tag.

Learn More about the Seismic Shift in Design To find out more about the development of wall and ceiling systems specifically designed for seismic situations, visit www.rondo.com.au/seismic or contact Rondo on 1300 36 7663.

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What’s New

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Bayer Crop Science Pty Ltd

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Construction Benefit Services

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Residential Plumbing Contractors New homes Extensions Small-scale developments

Construction Industry Training Board 13

MBA builder saves time and cuts cost with SiteBook Master Builders SA member AREA Construction has cut subcontractor pre-qualification costs and compliance complexity through a joint initiative with local software developer SiteBook.

In association with the Master Builders SA, AREA Construction Operations Manager Scott Taylor recently undertook a review of Work Health Safety to ensure the company’s documentation and processes were as streamlined as possible, and complied with Work Health & Safety Legislation.

This review identified that the process of collecting and checking trade subcontractor pre-qualification and safety requirements took considerable time an could be improved.

Scott requested local software developer SiteBook to design a website that enabled trades and suppliers to easily provide AREA with the details of their licences and insurances, by uploading their documents on to SiteBook.

SiteBook developed a web site that guides the subcontractor through the pre-qualification process with a smart check list that contains items based on AREA’s requirements.

Once the subcontractor provides pre-qualification items, AREA staff can easily review and approve each item. SiteBook automatically checks for expired items on a daily basis and emails the subcontractor requesting renewal details.

Scott says “As a result of implementing these improvements, our staff at AREA are making considerable savings in time per contractor per annum. And, with the added benefit of no extra cost passed on to the contractor”.

The SiteBook Pre-qua lif ication module is now available as part of the SiteBook Construction Management app for Builders.

For more information contact: Phone: 1300 736 316 Website: www.sitebook.com.au

Ryan Blair M 0402 1333 75 E blairplumbing@outlook.com

E.J.P Gagliardi

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Engineering Surveys

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Fujitsu 35 Master Builders Australia MBA Insurance Services Pty Ltd

19 34–OBC

Newstyle Printing

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Oldfields Advance Scaffold SA & WA

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Resource Co Concrete

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Rinnai Australia Rondo Building Services

48–49 IBC

Sitebook 52 Toyota Motor Corporation Australia Limited

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USG Boral

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Volkswagen 23

Our Seismic Solutions help complete the picture.

New Royal Adelaide Hospital, South Australia Getting a Seismic solution for your project is no longer a puzzle.

With the addition of a few new components, Rondo’s KEY-LOCK® and Stud & Track Systems now have a seismic solution, with every element designed to work together and tailored to suit your project’s seismic requirements. Our Engineering team has designed Rondo Seismic Wall and Ceiling Systems for major projects across Australia and New Zealand, including current supply to New Royal Adelaide Hospital, Perth’s Children’s Hospital and Market Lane in New Zealand. Our recently completed projects also include the South Australian Health & Medical Research Institute, the Taranaki Base Hospital, Lambton Square, Clyde Quay Wharf and the Kilmore St Medical Centre in New Zealand. And not only are our Seismic Systems backed by our team of expert Engineers, we also give you access to Seismic Design Wizards on our website, 24 hours a day. Simply by inputting your project-specific information, you can calculate seismic ceiling designs, check that the vertical capacity is ok, and determine whether bracing is necessary or not.

On completion, you can print out your results, email them to yourself, or send to us for further assistance.

For more information, visit www.rondo.com.au/seismic today.

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Royal Adelaide Hospital image by HYLC Joint Venture.

RONDO and KEY-LOCK are registered trademarks of Rondo Building Services Pty Ltd. ABN 69 000 289 207.

SA BUILDER JUNE – JULY 2016