2015 MB NSW Magazine Apr-May by arkmedia4217

Official Magazine of the Master Builders Association of NSW | Issue Two | Apr - May 2015

Print Post Publication No. PP100003016

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contents

IN THIS ISSUE: Official Magazine of the Master Builders Association of NSW | Issue Two | Apr - May 2015

Official Magazine of the Master Builders Association of NSW | Issue Two | Apr - May 2015

REGULARS Contact List President’s Viewpoint Executive Director’s Viewpoint Newsbrief Regional Roundup Dates for your Diary The Way We Were

4 6 8 34 40 65 84

FEATURES Special ANZAC Feature 11 Looking back to building during the Great War Women in Construction 42 Closing gender pay gap is everyone’s responsibility Apprenticeship 49 So you want to be an apprentice carpenter? Print Post Publication No. PP100003016

Training 50 Top-notch industry training for members Aboriginal Affairs 51 Aboriginal participation in construction industry survey Workplace Health & Safety 52 Partnership to continue fostering safe work practices Workplace vaccination is a smart investment SALES MANAGER: Peter Shepherd EMAIL: peter.shepherd@crowtherblayne.com.au ADVERTISING SALES: Peter Shepherd, Craig Flenley, Dean Wedding, Rose Delosreyes and Liam Daly EDITOR: Richard Szabo GRAPHIC DESIGN TEAM: Byron Bailey and Andrew Crabb

Legal 54 Beware of subcontracts that incorporate or refer to terms in head contract or other documents Major change announced to the way monies are kept Insurance 56 Understanding professional indemnity insurance Finance 58 Minimise tax liability when purchasing your next company vehicle

PRODUCTION: Brooke Travers PRINT: Newstyle DISTRIBUTION: Newstyle CONTACT DETAILS PO Box 824 Surfers Paradise QLD 4217 TEL: 1800 222 757 FAX: 1800 063 151 EMAIL: publications@crowtherblayne.com.au WEB: www.crowtherblayne.com.au

Technology 59 Free and easy way to simplify tax for business Industrial Relations 60 Trade union Royal Commission continues into 2015 with a police taskforce Productivity commission review of workplace relations framework Bullying and adverse action updated Policy backflip on drug and alcohol testing MEMBERSHIP Take your business to the next level

GENERAL FEATURES Commercial vehicles 66 Don’t forget safety while bargaining for a new company car Disclaimer: The Publisher and the Master Builders Association of NSW, their employees and agents take no responsibility for any inaccuracies or omissions. The opinions are those of the contributors and not necessarily of the Publishers nor of the Association. No warranty is given and no liability is accepted. Products and Services appearing in Master Builder are not necessarily endorsed by the Publisher or the Association. While every care has been taken during production, the publisher(s) do not accept any liability for errors or omissions that may have occurred.

Termite management 70 Managing termite risk – new standards and NCC Waterproofing 74 Solving damage issues with innovation DIRECTORY

WHAT’S NEW

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

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contact list MASTER BUILDERS ASSOCIATION OF NEW SOUTH WALES 52 Parramatta Road, Forest Lodge NSW 2037 / Private Bag 9, Broadway NSW 2007 Tel: 02 8586 3555 | Fax: 02 9660 3700 Email: enquiries@mbansw.asn.au Website: www.mbansw.asn.au | ABN 96 550 042 906

HEAD OFFICE

Safety Officer IR Administration Officer Secretary

EXECUTIVE BOARD Paul Maginnity Ross Mitchell Gordon Leggett Scott Nash Martin Patience Simon Pilcher Chris Calderbank-Park

President Deputy President Immediate Past President Vice President Vice President Vice President Vice President

Awards Coordinator Assistant Awards Coordinators Special Projects Officer Business Development Manager

8586 3503 8586 3507

MBA INSURANCE SERVICES State Manager Senior Account Manager Account Executive - General Authorised Representative - Capital & Construction Risk Managers Pty Limited Account Executive - Home Warranty Account Executive - Warranty National Business Development Manager (Surety)

Luke Hueston Edwina Lyall Malcolm Foung Adam Myers Erroll Wong Adam Fawcett

8586 3519 0412 806 700 8586 3556 8586 3501 8586 3568 0466 770 910

Daniel Vine Jayne Pan Joel Beater Bill Korakis

8586 3566 8586 3528 8586 3565 8586 3541

Ogarit Kelley

0414 919 194 1300 760 366

Graham McGuiggan Paul Love Mark Shearwood Joan Ah-Hen Samantha Bell Susie Bell

8586 3554 8586 3540 0413 306 556 8586 3520 8586 3515 8586 3572 8586 3581

Timithy Rolls Jake Curran Darin Grace Madison Brown Vanessa Herrera Dean Edser Nicole Midolo Carson Gao Michelle Vella Jason Kim Stephanie Guan Penny McDonald Andrew Turner Sharon Eakin Laura Weston William Louie Nicole Daws

8586 3560 8586 3534 8586 3579 8586 3576

Laura Weston

8586 3588 8586 3557

Karen Kellock Perry Wynn Maria-Luisa Branezac Teigen Morier Paulo Atienza Ben Mitchell Frank Luppino Donna Seidler

8586 3538 8586 3533 8586 3536 8586 3542 0423 025 380 0412 499 754 0401 998 853 0413 316 407

MASTER BUILDERS FINANCIAL SERVICES Broker

MEMBER SERVICES Manager Member Services Membership Coordinator Membership Representative Member Services - Administration Member Services - Administration Member Services - Administration

TRAINING Compliance and Quality Officer Short Course Coordinator Training Manager Short Course Administrator Short Course Administrator Qualifications Coordinator Qualifications Administrator Cert III Coordinator Cert III Co ordinator Assistant Cert III Administrators Admin Assistant in Cert III Admin Assistant in Cert III Cert III Head Trainer Training Accounts /Administration Coordinator Receptionist Administration Assistants Administration Trainee MBA Skill Recognition Centre

8586 3548 8586 3521 8586 3559 8586 3544

8586 3578 8586 3553 8586 3588 8586 3563 8586 3514 1300 884 315

NORWEST EDUCATION CENTRE 5 Burbank Place, Baulkham Hills NSW 2153 Reception Executive Office

APPRENTICESHIP SERVICES Apprenticeship Services Manager Apprenticeship Services Coordinator Apprenticeship Payroll Supervisor Apprenticeship Payroll Apprenticeship Field Officer Apprenticeship Field Officer Apprenticeship Field Officer Apprenticeship Mentor

CONSTRUCTION APPRENTICESHIP MENTORING PROGRAM - (CAMS) Government Projects & Programs Manager

8586 3537

Communications Manager

Steven Swan

8586 3562

Arthur Johnson Strebre Delovski Leon Kopcikas Frank Chevell Rheannon Vea Vea Bridget Delmore

8586 3508 8586 3511 8586 3509 8586 3567 8586 3527 8586 3510 8586 3526 8586 3530 8586 3546

FINANCE & ADMINISTRATION Director Finance & Administration Accounts Supervisor Credit Control Manager Credit Officer Inventory & Property Administration Officer Accounts Payable Officer Reception #2 Fishbowl #2 Charles Martin Room

INFORMATION TECHNOLOGY IT Systems Manager IT Support/Webmaster

Amanda Kernaghan 8586 3580 Alexander Ashley-Carrington 8586 3525

RECEPTION Receptionist

Joanne Papageorge Daniela Fraumeni

8586 3555 8586 3555

REGIONAL OFFICES NEWCASTLE OFFICE Level 1, 165 Lambton Road, Broadmeadow NSW 2292 Tel: Hunter Region Manager Len Blakeney Office Administrator Sarah Croft Receptionist Amy Porter Industrial Relations Officer Ben Ziolkowski Shona D’Arbon Safety Officer John McGhee Trade Events & Divisional Coordinator Haley Tibbetts Membership Representative Luke Reeves Events and Training Coordinator Kerri Richards MBA Insurance Services - Newcastle Leeanne Farmer

4953 9400 4979 0101 4979 0103 4953 9400 4979 0107 4979 0116 4979 0112 4979 0106 4979 0109 4979 0105 0466 777 057

NORTHERN REGIONS Shop 1, 97 Tamar Street, Ballina NSW 2478 Tel: Regional Coordinator Membership Representative Member Services Representative

Juliet Pratley Graham Marchant Marlee Rudgley

6681 4266 0421 050 395 0428 412 784

Peter Meredith Helen Tinson Lesley Potter

4323 4588 0412 694 001 4323 4588 4323 4588

GOSFORD Unit 7/4 Stockyard Place, West Gosford NSW 2250 Tel: Director - Housing Office Manager (Wed/Thurs) Office Manager (Mon/Tues)

SOUTHERN REGIONS Unit 1, 171 Princes Highway, Ulladulla NSW 2539 Tel: Regional Coordinator Lynn Smith Member Services Representative Debbie McDonald

4454 1955 0418 633 297 4454 1955

ALBURY/WODONGA 35 Hovell Street, Wodonga VIC 3690 Tel: Regional Manager Office Manager Administration Assistant

Steve Donaghey Lesley Donaghey Pauline Meade

PORT MACQUARIE

Peter Meredith

4323 4588

Unit 3, 12 Jindalee Road, Port Macquarie NSW 2444 Tel: Member Services Representative Kerrie Clark

Robert Collings Hannah Shephard Renee McKeown

8586 3517 8586 3517 8586 3517

Unit 3, 29-35 Princes Highway, Unanderra NSW 2526 Tel: Regional Coordinator Michael Hart Member Services Representative Ruth Billington

Peter Glover David Solomon Rod Grace Nicholas Arends Iain Jarman

8586 3535 8586 3552 8586 3574 8586 3573 8586 3502

MATES IN CONSTRUCTION

6058 2000 0402 044 075 6058 2000 6058 2000

6581 4033 6581 4033

WOLLONGONG

INDUSTRIAL RELATIONS AND SAFETY Director Construction Executive Officer Safety Industrial Relations Officers

Craig Donovan

COMMUNICATIONS

8586 3539

LEGAL Head Solicitor Solicitor Legal Assistant

8586 3506 8586 3564 8586 3504 0421 050 395

Omesh Jethwani

HOUSING Director - Housing

Susan Manning Helen Harris Amanda Kelly Juliet Pratley

OPERATIONS Director, Operations

Brian Seidler Amanda de Vries

8586 3522 8586 3531 8586 3523

EVENTS & BUSINESS DEVELOPMENT

EXECUTIVE Executive Director Executive Assistant

Chris Schultz Judy Macgregor Beverly Glover

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

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4272 9409 0419 140 126 4272 9409 8586 3575

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president’s viewpoint

Building and construction is going from strength to strength in New South Wales. Our industry is a major pillar of the Australian economy, accounting for a quarter of the national value of work on its own. The boom in the Sydney housing market is the “undisputed star” of the industry in performance, and is a major factor in underpinning the resurgence of NSW’s economy.

President Paul Maginnity

NSW is number-one in terms of dwelling starts and housing finance commitments and, according to CommSec, it is the nation’s number-one economy. The biggest growth has been in multi-unit developments/apartments, with solid growth also in detached housing. Growth is forecast for each sector of the NSW building and construction industry over the next three years. These sectors include residential, commercial and engineering/civil. While building and construction boosts the broader economy through the multiplier effects, the industry also benefits from increased business, consumer and investor confidence – which is a feature of a strong economy. It is important to note that in the last March 2015 quarter NSW had: • the strongest retail spending of any state or territory • strongest population growth (key driver of residential construction) • third-lowest unemployment rate

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

As far as the NSW commercial construction sector is concerned, overall non-residential construction is forecast to return to levels not seen since the 1980s over the next three years. Strongest growth is expected to occur in the office, retail, education and health and aged care sectors. Coupled with strong investment in infrastructure spending from both the national and state governments, growth in the engineering/civil construction sectors is also forecast to occur. Sub sectors such as roads, heavy industry, bridges, rail and harbour, electricity and pipelines are predicted to enjoy robust growth. With the re-election of the NSW Government, election commitments to release more land for housing development and new infrastructure projects will contribute to a strong industry for NSW and offer more opportunities for all.

Paul Maginnity MBA/NSW PRESIDENT

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ts produc y new stry it n a m o indu With s in our me to r e f f ind ti f o on o t all. icult is diff tigate them e inves e mad glad w . y r e v e We are for this on time

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ead Whiteh ts Mr Glen elopmen BJM Dev r, o ct ire aging D

op the Waterst Switching to a en be system has Streamline ny. pa m co e sult for th re ic st ta fan by being l the boxes It ticks al stall k, easy to in modern, slee e. and failsaf ed with irs associat Costly repa e now a er trays ar leaking show st e pa . thing of th Luke Pearce vine Homes Manager, De

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right omes nnis W azley H Mr De ger, Be a n a M ct je ro P and

My b usine ss ha rapidl s expa y sin nded ce we the W start aters ed us t in o hob a p Str eamlin g nd n ow I volun e have tarily tilers recom Water mend stop s ing t ystem he – and to oth me – er bu ilders Every . one t hat u ses it loves it. Mr Fre Man dM

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Waters top Str Why wo eamlin uld an e– yone u se any else to thing build a shower? At last someon e has g togeth ot a prod er that uct not on but it ly work looks goo s, d and is for eve so easy ry trad e to wor even com k with. e s with It instruc step by tions on step the prot ective t ape.

eddin Directo gs r, Wate rtight A (Wate ustralia rproofe rs)

reamline in all Using Waterstop St s made life easy our shower areas ha and our tilers. g for waterproofin to install and They are so simple fessional. always look very pro my clients I recommend to all Streamline p sto ter Wa e to use th areas. wer system in their sho Mr Kerry Blake terproofing

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executive director’s viewpoint

Executive Director Brian Seidler

LOOKING BACK TO BUILDING DURING THE GREAT WAR For this edition of Master Builder Magazine, we visited our archives and reproduced some very interesting articles to show you what the Master Builders Association (MBA) was saying at the time young Australians first arrived at Gallipoli, in April 1915. We have also reproduced various reports on building issues, advertisements of common products used at that time, as well as actual accounts from soldiers at the various fronts of conflict throughout 1915. It is particularly interesting to note the article titled “Apprenticeship in NSW”, which in many ways identifies a lot of the issues that we still experience today – 100 years on. We hope you find what was said by the MBA and the industry 100 years ago interesting, and gives you a small insight into how the industry reacted and responded to being at war. Finally, it is a sobering thought to note and reflect that the MBA’s main meeting room at its head office in Sydney, has an Honour Board that identifies those builders and sons of builders who were members of the Association and served in the Great War of 1914–1918. Sadly, it also identifies those who did not return.

Brian Seidler EXECUTIVE DIRECTOR

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

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newsbrief

LEGAL

WORK HEALTH AND SAFETY

ECONOMICS AND TAXATION

RESIDENTIAL CONTRACTS TO BE REVISED URBAN INFRASTRUCTURE INVESTMENT TO LIFT PRODUCTIVITY

Australian Building Industry Contracts (ABIC) are being developed to accommodate for regulatory changes in New South Wales’ residential sector.

Increased investment in infrastructure has been emphasised as an essential underpinning of future productivity and living standards according to the Intergenerational Report. The report shows Australia’s population will grow by 16 million over the next 40 years.

The Home Building Amendment Act 2014 (NSW) passed in State Parliament on 28 May 2014, and came into force on 1 March 2015. Progress payments permitted under the Home Building Act are now limited to: • a specified amount or percentage of the contract price that is payable following completion of a specified stage of the work with the work that comprises that stage described in clear and plain language • payment for labour and materials in respect to work already performed or costs already incurred (and which may include the addition of a margin), with provision for a claim for payment to be supported by such invoices, receipts or other documents as may reasonably be required to support the claim and with payment intervals fixed by the contract or on an “as invoiced” basis Richard Calver, National Director Industrial Relations and Legal Counsel at Master Builders Australia said the MW-2008 H NSW version will be unsuitable for single dwellings. “It is intended for multi-storey, multi-unit or complex residential building projects,” he said. “Work is proceeding on other ABIC versions particularly SW. “MW-2008 H NSW is available now.”

Master Builders’ pre-budget submission calls for greater investment in high quality urban infrastructure.

RESEARCH SHOWS ‘DOWNWARD TREND’ ON FATALITIES REVERSED Master Builders staff recently met with personnel from Safe Work Australia to better understand fatalities in the industry and the trends in reducing workplace deaths. The fatality rate for the building and construction industry (injuries only, not disease effects) jumped 27.3 per cent to 28 incidents during calendar 2014 compared to the previous year. “Preliminary data indicates the positive trend is not yet broken, and we are hopeful that 2015 will see a return to the reduction in fatalities,” Master Builders Australia National Director Industrial Relations and Legal Counsel Richard Calver said. “In addition, these figures can change as new information is received by Safe Work Australia from states and territories and via Coroners’ reports.”

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

It urged for greater investment in roads and public transport to avoid “choking up our cities”. Congestion negatively impacts on commerce, labour mobility and housing settlement patterns. More class rooms, hospital beds and roads connecting work to home will also be needed to provide more livable and connected communities. The report also projects a dramatic contraction in the tax base, reinforcing the need for reforms to ensure community infrastructure can be funded and delivered for better value to taxpayers. Master Builders believes more needs to be done on how private sector, superannuation funds and government can more effectively partner to deliver vital infrastructure investment.

newsbrief

ECONOMICS AND TAXATION INDUSTRY NAMED THIRD LARGEST EMPLOYER

HOUSING CHALLENGES EXPOSED BY INTERGENERATIONAL REPORT Australia will need more than 9 million new homes to meet the needs of an upcoming population boom.

LATEST DATA REINFORCES NEED FOR ACTION ON AFFORDABILITY The latest housing finance figures highlight an urgent need for a national housing affordability agenda to increase housing supply and ensure first-home buyers are not locked out of the market. Master Builders Australia says only by increasing supply can we solve poor housing affordability by exerting downward pressure on house prices. “We need a policy response that works to release the handbrake on new housing,” the association said. “The housing shortfall is driving continued deterioration in housing affordability, and Master Builders calls for urgent reforms to ensure the intergenerational home ownership gap does not widen.” The May 2015 Budget is expected to be an opportunity for Federal Government to respond with pragmatic reforms to ensure that supply side barriers do not prevent more first-home buyers from being locked out the market.

Intergenerational Report predicts our nation will need to more than double its current housing stock over the next 40 years to accommodate an expected 1.3 per cent jump in annual population growth – about 300,690 more people each year. A key challenge will be to tackle intergenerational housing affordability in order to preserve home ownership as a fundamental pillar of Australia’s economy and family life over the next 40 years. The report also highlights more brownfield sites will be essential to meet increased demand for multi-density housing, particularly as baby-boomers seek to increasingly ‘right size’ in response to their changing lifestyles. This will demand a serious commitment to reforms, to counter-supply side impediments that drive up house prices. Master Builders supports the importance the Intergenerational Report gives to reducing red and green tape, and regulatory duplication at both state and local levels of government.

The latest detailed industry employment data shows positive employment growth in the nation’s third largest industry, building and construction. Employment was flat in seasonally adjusted terms in the November 2014 quarter, although the trend in building and construction industry employment remains positive. In original terms, the number employed in the building and construction industry was estimated at 1.02 million as the upswing in residential building offsets the effect of a flat non-residential building sector, and job losses in engineering construction as the downturn in mining investment unfolds. At 8.7 per cent of total employment, the building and construction industry remains the third-largest behind only the health and retail industries.

SMALL BUSINESS PAYS ALL SUPER AT ONCE Thousands more small businesses will be able to pay employee super contributions at once, to the Small Business Superannuation Clearing House by July 2015. In a recent speech to the Tax Institute, Australia Tax Commissioner Chris Jordan said this was due to a change in eligibility rules. The threshold is a maximum of 19 employees or company turnover of no more than $2 million. In addition, the Australian Taxation Office (ATO) will continue to enhance the Small Business Newsroom, an online newsroom with more than 13,000 subscribers – with almost half opting out of general mail and choosing to access information through the newsroom instead. This will eliminate the need for 16 hard copy newsletters.

Master Builders’ pre-budget submission called on government to work with the states and local councils to remove the “shackles” on new housing.

Master Builders backs views of the Intergenerational Report that more accountability and less waste and duplication must be required from these levels of government.

These include:

Master Builders’ submissions to the White

In addition to this, both the AUSkey and ABN registration processes are being improved.

Paper on Reform of Federation and the Harper Review of Competition Policy called for reforms to reward local councils for releasing more brownfield and greenfield land efficiently for housing development, including national competition-style payments from the Federal Government.

The ATO has updated instructions to make it easier to sign up/register. A new personal services income decision tool will be released later this year in preparation for tax time. It will analyse individual circumstances and provide guidance on how to include this income in their tax return.

• Poor land release strategies that fail to open up sufficient new brownfield and greenfield land • high and inefficient developer charges and infrastructure levies • poor planning and approvals processes

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newsbrief

TRAINING Eligible community service organisations can receive funding of up to $2000 to support 15 to 18 year olds, to get back into school, start VET or move into the workforce. Businesses and community service organisations have until 29 February 2016 to apply through the online application form. More information and application forms can be found on www.business.gov.au/youth

CONSTRUCTION WHITE CARD TO BE REVAMPED

AUSTRALIAN YOUTH TO BE UPSKILLED IN $44 MILLION PROGRAMME Businesses can apply for support to boost the skills of young people under the youth stream pilot programmes through the Industry Skills Fund. The two pilot programs, Training for Employment Scholarships and Youth Employment Pathways, aim to address youth unemployment. They also try to meet the needs of business while also assisting young people to return to school, start vocational education and training, or move into the workforce. Youth Employment Pathways and the Training Employment Scholarships programmes will be trialled across all states, with 21 regions selected for the Youth Employment Pathways and 11 for the Training for Employment Scholarships. Scholarships worth as much as $7500 each are available to micro, small and medium businesses that hire unemployed youth – aged 18 to 24, for 12 months. To support the costs of training that makes them work ready under the Training for Employment Scholarships. The Youth Employment Pathways program will assist 3000 youth who are not working, training or schooling.

The Construction and Property Services Industry Skills Council (CPSISC) will undertake a review and drafting of the unit of competency ‘CPCCOHS1001A Work Safely in the Construction Industry’. The unit commonly known as the ‘White Card’ will be redeveloped for endorsement within the CPC Construction, Plumbing and Services Training Package.

are issues that must be tackled by the national regulator ASQA and state regulators in Victoria and Western Australia. The significance of this unit of competency and importance of its regulatory function means project consultants will work with a wide range of stakeholders and interested parties to ensure the redeveloped unit achieves the required assessment outcomes. The project is underway and scheduled to complete in October 2015. Master Builders National Training Director Robert Wilson will represent MBA on the project reference group. Should you have any issues you wish to raise in regards to the ‘White Card’ review, please contact him by emailing robert.wilson@masterbuilders.com.au

HOUSING

CPCCOHS1001A Work Safely in the Construction Industry is of particular significance as it covers the preparatory and pre-workplace workplace, health and safety training required before entering a construction site in Australia.

CONSTRUCTION PRICES TO SOAR

People seeking to work in the construction industry must successfully complete training in this unit in order to be issued with a General Induction Training Card (White Card).

The pick-up is likely to be strongest in Brisbane (up 5.1 per cent) and Sydney (up 4.5 per cent). However, construction costs are predicted to fall in Adelaide, Melbourne and Perth (all down 2.5 per cent) – and Canberra (down 2.1 per cent).

This induction safety training is mandatory for all working on construction sites in recognition of the high-risk nature of the job. In 2013, the unit was subject to an Australian Skills Quality Authority (ASQA) review due to concerns mainly related to quality of delivery and assessment outcomes, particularly online implementation strategies.

Construction price growth is expected to accelerate during 2015, according to a new report by Rider Levett Bucknall (RLB), a consultancy.

RLB pointed to labour shortages, especially for skilled trades, as a key risk to their construction costs outlook.

COMMERCIAL PROPERTY RECOVERS

This project will take into account needs of industry, standards for training packages and recommendations from the ASQA report.

Commercial property supply is expected to rebound in 2015 and in 2016, following a hiatus in 2014, according to new forecasts from consultancy Knight Frank.

While there is scope to tighten content, delivery and assessment requirements within the unit, it will not end ‘dodgy’ practices undertaken by some RTOs. These practices

The 2015 gross supply of commercial property is expected to jump by around 70 per cent to 564,000 square metres (sqm) of new space.

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

newsbrief

HOUSING

INFRASTRUCTURE

The largest increases in new supply are predicted to be in Sydney (more than 179,000 sqm), Perth (over 154,000 sqm) and Melbourne (almost 131,000 sqm).

Based on paperwork generated with a minimum of professional input during construction, no particular part of the industry can be held responsible.

The new supply in Sydney reflects the expected completion of Tower 2 in the highprofile Barangaroo development.

The system has simply evolved to a point where there is no real safe guards to ensure that all works are not only designed, but also built in accordance with good building practice and all relevant Australian Standards.

RETAIL PROPERTY INVESTMENT SLUMP Investment in commercial retail properties has declined slightly in the last year. A new analysis shows the 2014 decline was the result of a lack of available stock rather than any weakening investor demand. The Knight Frank report says spending by consumers remains strong, and investors need to be “alert” to the strong growth in competing online retail demand. Foreign investor interest in Australian retail property is expected to remain strong well into 2015.

BUILDING DEFECT RESOLUTION AN “ALTERNATIVE APPROACH” A University of New South Wales investigation, funded by the Federal Government has found 85 per cent of strata units are defective at completion. In 2012, the Institution of Engineers Australia set up a multi-disciplinary committee to examine the current system of Building Certification in NSW. A final report was handed to the State Government in June 2013. Insurance industry representatives have established the average cost of a residential project is 1.27 times the cost at the time of issuing the occupation certificate. Throughout 2013 and 2014, the Sydney building market was reasonably buoyant. However, it is so competitive that margins for builders are often at or below cost in an effort to survive.

After a lengthy period of exchanging letters, no agreement has been reached and both sides appoint their legal teams. At that time each legal team engage technical experts to prepare evidence on their behalf. Even though the experts sign a statutory declaration regarding the Code of Conduct for Experts, the reports inevitably are biased in favour of each side. It is set up perfectly for the lawyers to then engage in the gladiatorial system of the legal profession.

ASSET RECYCLING PACT The Federal and the NSW Governments have reached an agreement under the Abbott Government’s asset recycling program. The deal will see the State Government receive $2 billion in incentive payments for investment in new infrastructure projects. However, before getting the money the Premier State will be required to meet its commitment to lease 49 per cent of its electricity supply network. Key infrastructure projects to benefit from the incentive payments include the Sydney Rapid Transit and the Western Sydney Rail Upgrade initiatives.

TECHNICAL HAVE YOUR SAY ON TIMBER STRUCTURES

RH Building Dispute Resolution boasts experience to both sides of a particular dispute. They have a standard document, which clearly defines the role of RH Consulting Engineers and does not prejudice the rights of either party at any stage.

Standards Australia is inviting industry comment on a proposed draft international standard on production and performance requirements for timber structures.

CLEARANCE RATES STRENGTHEN

The proposed standard specifies product and performance requirements, for fingerjointed structural timber made from sawn timber elements.

Auction clearance rates are continuing to strength according to the latest data. CoreLogic RP Data National Auction Comment has found they averaged more than 78 per cent nationwide, well up on the 71 per cent figure recorded for the same time in 2014. The highest clearance rates are in Sydney (just over 85 per cent), followed by Melbourne (78 per cent) and Adelaide (73 per cent). In contrast, clearance rates were just under 42 per cent in Perth.

It reflects concern amongst regulators that the most critical issue arises with unrestricted application – except for wall studs – of finger-jointed timber, such as the bottom and tension chords of trusses that are heavily loaded over a large tributary area. The failure of a single finger-joint in such circumstances has potential to cause a major structural collapse. Copies of the draft international standard are available from Master Builders on request.

The national auction clearance rate of 78 per cent is just below the record of almost 80 per cent, achieved in September 2009.

With the introduction of “design and construct”, the priority has become price and program over the quality of the product. This suggests the general standard of certification is a veneer of respectability.

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newsbrief

TECHNICAL COMMENT SOUGHT ON GLUED LAMINATED TIMBERS Standards Australia has released for industry comment a proposed draft international standard on testing methods for glued laminated timbers. The proposed Standard specifies test methods suitable for determining the following characteristic values of glued laminated timber: Modulus of elasticity in bending; shear modulus; bending strength; modulus of elasticity in tension parallel to the grain; tension strength parallel to the grain; modulus of elasticity in compression parallel to the grain; compression strength parallel to the grain; modulus of elasticity in tension perpendicular to the grain; tension strength perpendicular to the grain; modulus of elasticity in compression perpendicular to the grain; compression strength perpendicular to the grain and shear strength. Copies of the draft international standard are available from Master Builders on request.

WORKPLACE RELATIONS COMPETITION POLICY PRAISED AS ‘EXCELLENT’ Our Federal Government has released the Harper Panel’s Final Report on Australian competition law and policy. The report made public on 31 March 2015 contains a number of excellent reform proposals, particularly in the area of industrial relations where Master Builders’ policy principles have been adopted. The Panel has recommended that prohibitions on secondary boycotts, currently in the competition legislation, be maintained and more effectively enforced. The Panel has indicated the Australian Competition and Consumer Commission should pursue secondary boycott cases with increased vigour, comparable to what applies in pursuing other contraventions of competition law. “It should also publish in its annual report the number of complaints made to it about different parts of the Competition and

WORKPLACE RELATIONS

EVENT

Consumer Act, including secondary boycott conduct and the number of such matters investigated and resolved each year,” Master Builders industrial relations national director and legal counsel Richard Calver said.

to be launched in mid-May, along with a super early bird end-of-financial year special registration price.

The maximum penalty level for secondary boycotts should be the same as what applies to other breaches of competition law, so that up to $10 million in fines can be levied against those who undertake this conduct. In addition, the Panel said it appears to be lawful under the Fair Work Act 2009 to make awards and register enterprise agreements, which restrict the freedom of employers, to engage contractors or source certain goods or non-labour services. The Panel considers it desirable this apparent conflict be resolved. It therefore recommends the law be amended, so legislation expressly applies to awards and industrial agreements, except to the extent they deal the remuneration, conditions of employment, hours of work or working conditions of employees.

EVENT MASTER BUILDERS NATIONAL CONFERENCE Master Builders are excited to announce its biennial national conference will be heading to the Gold Coast in November 2015, in what is promised to be the industry event of the year. Unlike many traditional industry conferences that have a program full of just technical sessions, the Building Australia conference stands out from the rest. The conference will focus on leadership and assist members to make informed decisions on continuing to grow their business, whilst developing and maintaining strong leadership attributes within their business ethics. Highprofile speakers will examine the building industry outlook and topics relevant to today’s building and construction industry. The conference program and registration includes partners and a social program

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

The Master Builders Excellence in Building Construction Awards will be presented as part of the national conference on the Saturday evening as the grand finale to an exciting conference on the Gold Coast. Organisers look forward to seeing you there! For more information visit: www.masterbuilders.com.au/Events/ national-conference

Crowther Blayne is an Australian leader in business-to-business online and print publications for a variety of industries worldwide. Crowther Blayne publications provide businesses with the broadest possible audience and target the most relevant decision-makers. By providing a platform of the highest quality, products and services are presented in the best possible light to the marketplace. If you have a specific enquiry about our services, or simply want to get in touch, please contact: Trish Riley | Business Development Manager | P: 1800 222 757 | trish@crowtherblayne.com.au | crowtherblayne.com.au

regional roundup

WORKCOVER FORUM An informative session has been held to discuss some risks of working near high voltage equipment.

BUILDERS DAY AND FACTORY TOUR DELIVERS A MESSAGE

A thorough and informative session on the issues and dangers of working near overhead power and electrical conductors (high voltages) has generated an electrifying response. Gary Sandall and Dave Farmer from WorkCover, along with Matt from Ausgrid held discussions that attracted 20 Master Builder members.

A learning excursion to the Newcastle area has introduced members to clean and environmentally friendly building materials. On 17 March 2015, 20 Master Builder members joined a learning excursion to the Weathertex Factory at Heatherbrae. The group positively received and supported the clean and environmentally friendly Weathertex range of boards presented, and took advantage of a factory tour and hands-on installation workshop. They received lunch, drinks and CPD points for attending the event, which was limited to 20 local builders. The excursion was both memorable and inclusive. It has become an annual event that is growing in popularity for the valuable information provided to local members.

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

The event was held on Friday, 20 March 2015 at the Newcastle MBA membersâ&#x20AC;&#x2122; room. The presenters examined the dangers of working near power lines. They also explained the requirements to undertake a risk assessment to implement adequate safety control measures, to either eliminate or minimise the risk of electrocution. Hayden Workplace Testing demonstrated their new mobile hearing and drug testing van in the car park. Attendees also received a free breakfast.

regional roundup

SOUTHERN REGIONS BUILDING GONG It will not be long until the search is on for the next winners of the Southern Regions Building Awards. Entries have closed for the 2015 Southern Regions Building Awards, and winners will be announced at a gala evening to be held on Saturday, the 20th of June. The number of categories has been increased to give more nominees a chance to be recognised.

If you missed this round, in future you can download entry forms from the MBA website: www.mbansw.asn.au The awards are a great opportunity to reward your hard work, and promote your business to potential clients.

BUILDERS SOUGHT FOR CHARITY PROJECT Builders have been encouraged to help the needy in a new development proposed for the Shoalhaven region. A proposed respite house for young people and children is inviting registrations of interest from builders who can lend a helping hand for charity. The project in Ulladulla is a joint initiative of the Lions Club, Rotary Club and Apex Foundation. Brian Thompson from the Lions Club made the request for proposals at a Master Builders Shoalhaven Division Meeting in February. Glenn Cairncross from Weathertex also joined the meeting as guest speaker.

Since the Shoalhaven Division covers a large area, the monthly division meetings have been alternated between Nowra, Ulladulla, Batemans Bay and Merimbula. This ensures all members in these regional areas are given an opportunity to attend. For more information contact Lynn Smith JP, Manager â&#x20AC;&#x201C; Southern Regions, Master Builders Association of NSW: Phone: 02 4454 1955 Email: lsmith@mbansw.asn

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

women in construction

Why is there a gender pay gap? While the proposition team may argue the gender pay gap is due to gender discrimination, the opposition, on the other hand may argue that the gender gap is a result from a combination of several factors, including but not limited to: • women’s traditional caring role, combined with a lack of flexible work options, can force them into casual and non-career part time jobs • women are under-represented in leadership and senior management positions • female graduates may start on a lower salary than male counterparts, even in the same industry and workplace – and this differential remains throughout their careers • men may receive bigger attraction and performance bonuses than women do • male dominated work has historically been better paid and organised than female dominated work

CLOSING GENDER PAY GAP IS EVERYONE'S RESPONSIBILITY Omesh Jethwani, Government Projects & Programs Manager examines reasons and causes of the gender pay gap. This is the first part of a Master Builder series on Women in Construction. Indian freedom movement leader Gandhi once said: "Woman is the companion of man, gifted with equal mental capacity ... if by strength is meant moral power, then woman is immeasurably man's superior ... if nonviolence is the law of our being, the future is with women." When heated debates over gender gap are discussed, the proposition and oppositions teams refer to systematic differences in the outcomes that men and women achieve in Australia's labour force market. These differences are seen in the percentages and ratio of men and women in the labour force, the different types of occupations held by both genders and relative incomes or hourly wages.

Gender pay gap in Australia is the difference between the average weekly earnings of female and male workers in Australia. It is calculated on the average weekly ordinary time earnings for full-time employees published by the Australian Bureau of Statistics. The gender pay gap excludes part-time, casual earnings and overtime payments. It has been estimated that the gender pay gap is currently 18.8 per cent, and this figure has remained almost unchanged in the last two decades.

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

What causes the gender pay gap? A range of social, historical and labour market factors have contributed to the gender pay gap. However, three key factors contribute to women earning less than men. They include: • Unsupportive work arrangements - a lack of permanent part-time jobs and flexible work arrangements restrict the ability to combine quality employment and family care responsibilities, and impacts on current and future earnings potential. This applies to all employees, but mostly on women who have dependent children • Over representation of women in casual and non-career part time employment - women are over-represented in casual or non-career part time jobs. These types of jobs are often paid low wage rates and provide fewer opportunities for training, development and career progression • Sex segregated labour market - men and women still tend to work in different areas of the workforce and be clustered into separate occupations and industries. Those industries and occupations that are female-dominated have traditionally been undervalued with ‘men’s work’ paid more than ‘women’s work’. In February 2015, the Workplace Gender Equality Agency released the gender pay gap statistics. The factsheet includes results from the Workplace Gender Equality Agency’s 2013-2014 reporting data.

women in construction

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

women in construction

For more information on how the gender pay gap is measured and interpreted refer to the Gender Pay Gap Taskforce Report.

National 6

In November 2014, the gender pay gap stood at 18.8%.

 The average weekly ordinary time earnings of women working full-time were $1,289.30 per week, compared to men who earned an average weekly wage of $1,587.40 per week, making women’s average earnings $298.10 per week less than men.  There has been an increase of over a percentage point (+1.4 pp) in the gender pay gap since November 2013. Since November 1994, the gender pay gap has increased by over two percentage points (+2.6 pp).  Over this 20 year period the gender pay gap was lowest in November 2004, at 14.9% (Figure 1). While a number of factors contribute to changes in the gender pay gap, including major changes in Government 7 policy, no causal links have been found to adequately explain the 2004 dip in the gender pay gap, or its subsequent steep rise.

Workplace Gender Equality Agency | Gender pay gap statistics | www.wgea.gov.au 8

Figure 1: Gender Pay Gap, Australia, November 1994 – November 2014

Nov-2014 18.8%

17 Percentage (%)

For Agency gender pay gap data (based on non-public sector organisations with 100 or more employees that are required to report to the Agency), refer to the WGEA data explorer, a visualisation tool that explores the gender pay gap by a cross-section of industry and occupations.

16 Nov-1994 16.2%

Nov-2004 14.9%

Source: ABS (2015), Average Weekly Earnings, Australia, Nov 2014, cat. no. 6302.0, viewed 26 February 2015, http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0 Note: Data based on Full Time Adult Ordinary Time Earnings, and based on November as the reference period.

State and territory Consistent with November 2013 figures, Western Australia had the widest gender pay gap in November 2014 (25.7%). Also consistent with November 2013, the Australian Capital Territory had the lowest gender pay gap in November 2014 (11.7%). Since November 2013 the gender pay gap has increased in New South Wales (+4.7 pp), followed by smaller increases in the Australian Capital Territory (+2.8 pp), Tasmania (+2.1 pp) and Western Australia (+1.3 pp). Over the same period, there were decreases in South Australia (-2.9 pp), the Northern Territory (-2.1 pp), Queensland (-0.9 pp) and Victoria (-0.7 pp; Table 1). Table 1: Gender pay gap by state and territory, November 2013 – November 2014 State/Territory

November-14

24.4

25.7

1.3

Qld

21.4

20.5

-0.9

NSW

14.2

18.9

4.7

20.3

18.2

-2.1

Vic

15.3

14.6

-0.7

16.5

13.6

-2.9

Tas

10.7

12.8

2.1

ACT

8.9

11.7

2.8

17.4

18.8

1.4

Australia

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Annual Change

November-13

Source: ABS (2015), Average Weekly Earnings, Australia, Nov 2014, cat. no. 6302.0, viewed 26 February 2015,

Source: ABS (2015), Average Weekly Earnings, Australia, Nov 2014, cat. no. 6302.0, viewed 26 February 2015, http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0

women in construction

Note: Data based on Full Time Adult Ordinary Time Earnings, and based on November as the reference period.

November-14

24.4

25.7

1.3

Qld

21.4

20.5

-0.9

NSW

14.2

18.9

4.7

20.3

18.2

-2.1

Vic

15.3

14.6

-0.7

16.5

13.6

-2.9

Tas

10.7

12.8

2.1

8.9

11.7

2.8

17.4

18.8

1.4

ACT Australia

Annual Change

November-13

Source: ABS (2015), Average Weekly Earnings, Australia, Nov 2014, cat. no. 6302.0, viewed 26 February 2015, http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0 Note: Data are based on Full Time Adult Ordinary Time Earnings, and based on November as the reference period. States and territories are ranked from highest gender pay gap to lowest gender pay gap in November 2014.

Differences in the gender pay gap across the states and territories may be partly explained by variations in the industry profiles of each state and territory. For example, the Western Australian full-time workforce has Workplace Gender Equality Agency | Gender pay gap statistics | www.wgea.gov.au higher concentrations of employment in construction, mining and manufacturing, where men represent the 4 majority of employees, and where there are relatively high gender pay gaps. In contrast, a large proportion of the full-time Australian Capital Territory workforce is in the public administration and safety sector which has 10 a low gender pay gap.

Equal pay day 11

Australia’s annual ‘Equal Pay Day’ marks the number of extra days the average woman must work to receive the same pay as the average man. Equal pay day is calculated once a year in May, so is not calculated using this most recent gender pay gap estimate (November 2014). The equal pay day formula 12 uses the gender pay gap estimate multiplied by 365 days, and divided by 100. The May 2014 gender pay gap estimate was 18.2%, and so the calculation is: (365 days x 18.2) ÷ 100 = 66.4. This is rounded to 66 days, which means from the beginning of the new financial year on July 1, the national equal pay day for 2014 was September 5. If equal pay day was to be calculated for each state and territory, it would fall on different days across Australia in 2014:  Women in Western Australia would be required to work 91 extra days and the Western Australian equal pay day would fall on September 30.  Women in Australian Capital Territory would have the least extra time to work of 33 days, and the Australian Capital Territory equal pay day would fall on August 3. Table 2 shows the equal pay day calculation for all Australian states and territories. Table 2: Calculated Equal Pay Day by state and territory, May 2014 State/Territory

Gender pay gap (%)

Extra days women need to work

Equal pay day

NSW

16.2

29/08/2014

Vic

14.3

22/08/2014

Qld

22.8

22/09/2014

16.7

31/08/2014

24.8

30/09/2014

Tas

11.7

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13/08/2014

Australia 46

18.2

5/09/2014

Source: ABS (2014), Average Weekly Earnings, Australia, May 2014, cat. no. 6302.0, viewed 26 February 2015, http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0

women in construction

Note: Data are based on Full Time Adult Ordinary Time Earnings, and based on May as the reference period. States and territories are ranked from highest gender pay gap to lowest gender pay gap in May 2014.

Industry In November 2014, the Financial and Insurance Services industry had the highest gender pay gap (29.6%), followed by Health Care and Social Assistance (29.1%) and Rental, Hiring and Real Estate Services (28.7%). The lowest gender pay gaps were in the Public Administration and Safety (7.2%), Other Services (8.2%), and Accommodation and Food Services (9.0%) industries.

Table 3: Gender pay gap by industry, November 2013 – November 2014 Industry

November-13

November-14

Difference

Financial and Insurance Services

31.9

29.6

-2.3

Health Care and Social Assistance

31.7

29.1

-2.6

Workplace Gender Equality Agency | Gender pay gap statistics | www.wgea.gov.au

Rental, Hiring and Real Estate Services

24.9

28.7

3.8

Professional, Scientific and Technical Services

26.6

28.0

1.4

Mining

21.7

0.0

Manufacturing

16.8

20.7

3.9

Information Media and Telecommunications

18.6

18.1

-0.5

Construction

20.1

16.5

-3.6

Administrative and Support Services

8.3

16.1

7.8

Transport, Postal and Warehousing

12.7

16.1

3.4

Arts and Recreation Services

14.2

15.3

1.1

Wholesale Trade

7.2

13.7

6.5

Education and Training

11.5

12.8

1.3

Retail Trade

12.9

12.1

-0.8

Electricity, Gas, Water and Waste Services

12.4

9.1

-3.3

Accommodation and Food Services

8.2

9.0

0.8

Other Services

8.0

8.2

0.2

Public Administration and Safety

7.3

7.2

-0.1

Source: ABS (2015), Average Weekly Earnings, Australia, Nov 2014, cat. no. 6302.0, viewed 26 February 2015, http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0 Note: Data are based on Full Time Adult Ordinary Time Earnings, and based on November as the reference period. Industries are ranked from highest gender pay gap to lowest gender pay gap in November 2014.

Although there was a 1.4 percentage point increase in the overall gender pay gap between 2013 and 2014, there was considerable variation between industries in the direction and size of the change between November 2013 and November 2014. Latest 2014 results show that, compared to 2013:  the gender pay gap increased markedly in three industries: Administrative and Support Services (+7.8 pp), Wholesale Trade (+6.5 pp) and Manufacturing (+3.9 pp)  the gender pay gap reduced substantially in three industries: Construction (-3.6 pp), Electricity, Gas, Water and Waste Services (-3.3 pp) and Health Care and Social Assistance (-2.6 pp). M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

women in construction

Occupation The ABS average weekly earnings dataset does not include data on average weekly earnings by occupation. The most recent data providing this information is the ABS Employee Earnings, Benefits and Trade Union Membership survey, released in June 2014. Using this dataset, the overall gender pay gap for women and men working full-time was calculated to be 21.2%. This high overall gender pay gap was mainly driven by high gender pay gaps in two occupations:  Technicians and Trades Workers (33.2%) and  Community and Personal Service Workers (27.4%). The occupations with the lowest gender pay gaps were:  Machinery Operators and Drivers (18.2%) and  Sales Workers (15.5%; Table 4) Table 4: Average weekly earnings in main job (full-time), and gender pay gap, by occupation of main job Men

Women

Gender pay gap 14 (%)

Technicians and Trades Workers

$1,353

$904

33.2

Community and Personal Service Workers

$1,306

$948

27.4

Professionals

$1,910

$1,459

23.6

Managers

$1,915

$1,475

23.0

Clerical and Administrative Workers

$1,388

$1,077

22.4

Labourers

$1,127

$893

20.8

Machinery Operators and Drivers

$1,385

$1,133

18.2

Sales Workers

$1,164

$984

15.5

Total

$1,533

$1,208

21.2

Average weekly full-time earnings in main job

Source: ABS (2014), Employee Earnings, Benefits and Trade Union Membership, Australia, August 2013, cat. no. 6310.0, viewed 26 February 2015, http://www.abs.gov.au/ausstats/abs@.nsf/mf/6310.0 Note: Employee Earnings, Benefits and Trade Union Membership, Australia (cat. no. 6310.0) is set to be replaced by Characteristics of Employment, Australia (cat. no. 6333.0) in the middle of 2015.

For part-time workers, the overall gender pay gap stood at -5.5% showing, on average, women were being paid more than men when employed part-time. However, further disaggregation showed that the negative gender pay gap for part-time workers was occupation-specific.  Women were being paid more than men if they worked in part-time employment as Community and Personal Service Workers (-18.8%), Labourers (-8.8%), Clerical and Administrative Workers (-7.0%), Sales Workers (-4.5%) and Managers (-3.5%).  Men earned more than women if they worked in part-time employment as Professionals (17.8%), Technicians and Trades Workers (17.0%), and Machinery Operators and Drivers (1.5%; Table 5). Table 5: Average weekly earnings in main job (part-time), and gender pay gap, by occupation and main job Average weekly part-time earnings in main job

Men

Professionals

$969

$797

17.8

Technicians and Trades Workers

$578

$480

17.0

Machinery Operators and Drivers

$525

$517

1.5

Managers

$839

$868

-3.5

Sales Workers

$310

$324

-4.5

Clerical and Administrative Workers

$554

$593

-7.0

Labourers

$340

$370

-8.8

Community and Personal Service Workers

$400

$475

-18.8

Workplace Gender Equality Agency | Gender pay gap statistics | www.wgea.gov.au

Women Gender pay gap 15 (%)

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

gender pay gap for part-time workers was occupation-specific.

women in construction

 Men earned more than women if they worked in part-time employment as Professionals (17.8%), Technicians and Trades Workers (17.0%), and Machinery Operators and Drivers (1.5%; Table 5). Table 5: Average weekly earnings in main job (part-time), and gender pay gap, by occupation and main job Average weekly part-time earnings in main job

Men

Professionals

$969

$797

17.8

Technicians and Trades Workers

$578

$480

17.0

Machinery Operators and Drivers

$525

$517

1.5

Managers

$839

$868

-3.5

Sales Workers

$310

$324

-4.5

Clerical and Administrative Workers

$554

$593

-7.0

Labourers

$340

$370

-8.8

Community and Personal Service Workers

$400

$475

-18.8

Average weekly part-time earnings in main job

Men

Total

$507

Workplace Gender Equality Agency | Gender pay gap statistics | www.wgea.gov.au

Women Gender pay gap 15 (%)

$535

-5.5

Private and public sector The gender pay gap in the public sector is considerably smaller than in the private sector. In November 2014, the private sector gender pay gap was 22.4%, an increase of 1.8 pp since November 2013, compared with 12.3% in the public sector, which had a slight decrease of 0.7 pp since November 2013. Figure 2 shows the trend over time in the gender pay gaps for both sectors. Figure 2: Gender pay gap, private and public sector, November 1994 – November 2014 25 22.4 20 Percentage (%)

 Women were being paid more than men if they worked in part-time employment as Community and Personal Service Workers (-18.8%), Labourers (-8.8%), Clerical and Administrative Workers (-7.0%), Sales Workers (-4.5%) and Managers (-3.5%).

15 12.3 10 5 0

Private

Public

Source: ABS (2015), Average Weekly Earnings, Australia, Nov 2014, cat. no. 6302.0, viewed 26 February 2015, http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0 Note: Data are based on Full Time Adult Ordinary Time Earnings, and based on November as the reference period.

The difference in gender pay gaps could be due to several differences between the sectors. For example, the main method of setting pay in the private sector was individual arrangement (44.4%), while the main 16 method of setting pay in the public sector was collective agreement (87.2%). Because the public sector predominantly uses collective agreements and has very transparent pay levels and scales, this would standardise pay between women and men and result in a smaller gender pay gap than the private sector, where individual agreements are common and likely to result in large pay differences between women and 17 men. Other factors that could contribute to the difference between the gender pay gaps by sector include:

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

 the public sector is situated in a politically-driven environment, while the private sector resides in a

apprenticeship

SO, YOU WANT TO BE AN APPRENTICE CARPENTER? Strong interest in the Master Builders Apprenticeship Service is fuelling optimism about the long-term sustainability of the building industry. By Karen Kellock, Apprenticeship Services Manager, Master Builders NSW

Master Builders Apprenticeship Service staff meet a lot of young men and women who tell us they want to be an apprentice carpenter. This is a really exciting thing for us to hear because we need more apprentices in the building and construction industry. There are many opportunities within this great industry of ours, and this is a career path that can lead a young person to be a carpenter, business owner, builder, sub-contractor, foreman, supervisor or construction manager – there is no limit! Before we assist any young person on this path, we need to make sure this is the career they really want. Too many apprentices give up their apprenticeship and leave the industry for a variety of reasons. We want our apprentices to stay, learn, grow and become the best builders in the industry – Master Builders. Master Builders Apprenticeship Service has employed thousands of apprentices over the years, and most of them learning the carpentry trade. This begs us to question, and we ask every potential apprentice when interviewing them, why do you want to be a carpenter? You’d be surprised by some of the answers we receive. I am always amazed by the number of young people who have chosen a career path, or

had one chosen for them, and don’t really understand what is involved in the day-to-day activities of the role. Master Builders Apprenticeship staff has been invited to schools, or attend career expos throughout the year, to meet with eager young people – and sometimes their parents – and explain what carpentry and many other building trades are all about. We always start by discussing what an apprenticeship in the building and construction industry involves from a physical and mental standpoint. We also explain what makes a quality apprentice. We ask these questions: • Do you enjoy working with your hands, making things? • Are you physically fit? You will need to be able to climb, bend, stoop, stretch and lift. • Are you prepared for hard work? Eight hours of physical labour each day is challenging when you’re not used to it. • Do you pay attention to detail, and have good maths and problem-solving skills? • Do you like working outdoors, sometimes in mixed weather conditions? • Are you prepared to listen, learn and be respectful?

• Are you able to turn up to work everyday, on time and stay off your mobile phone? If they answer yes to all of these questions, they are on the right path. You can help us recruit the best apprentices in your business As Master Builders members, I urge you to give up a few minutes of your valuable time when a young person asks about your job. Be upfront with them and tell them the good, bad and the ugly so they can grasp the reality of day-to-day life within the building and construction industry. Ask them to contact the Master Builders Apprenticeship Service. Master Builders Apprenticeship Service is always looking for quality candidates for the apprenticeship positions we have available. More information: Recommend someone for an apprenticeship with Master Builders Apprenticeship Service by visiting www.mbansw.asn.au/apprenticeship or phoning 8586 3533. Potential apprentices can apply online at www.mbansw.asn.au/services/ apprenticeships/become-an-apprentice

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

training

TOP-NOTCH INDUSTRY TRAINING FOR MEMBERS Master Builders (MBA) continues to offer top-of-the-line training for industry specific requirements and career targeted upskilling. A recent addition to the schedule is the Building Consultant Course. The Building Consultant Course runs for two days and gives people with industry experience a deeper understanding of the trade in building inspection, pre-purchase inspections and residential building reports. It is a great course for those with an interest in reporting for site inspections and standards adherence, and those looking to broaden their industry portfolio. All course schedules are available online at www.mbansw.asn.au/Training/Course-List

SCHEDULE April Newcastle • Asbestos Awareness • Construction Induction (OHS/White Card) • Test & Tag Sydney • Building Consultant • General Construction Induction • Property Development Seminar • Provide First Aid • Remove Non-Friable Asbestos • Supervise Asbestos • Test & Tag Ulladulla • Contracts/Insurance Workshop • Provide First Aid • Test & Tag Unanderra (Wollongong) • Remove Non-Friable Asbestos and Supervise Asbestos

May Ballina • Test & Tag Newcastle • Business Strategy • General Construction Induction • Provide First Aid • Remove Non-Friable Asbestos • Supervise Asbestos • Test & Tag Sydney • Apply Traffic Control Plans (Yellow) • Asbestos Assessor • Business Planning • General Construction Induction • Introduction to Payment of Security • iPad for Business • Managing Psychological Illness & Injuries • Manual Handling Training • Microsoft Excel Intermediate • Project Management • Property Development Seminar • Provide First Aid • Remove Non-Friable Asbestos • Return to Work Coordinator • Supervise Asbestos • Test & Tag • Traffic Control (Blue) Ulladulla • Apply Traffic Control Plans (Yellow) • Building Consultant • Traffic Control (Blue) Unanderra (Wollongong) • Provide First Aid

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

aboriginal affairs

ABORIGINAL PARTICIPATION IN CONSTRUCTION INDUSTRY SURVEY Omesh Jethwani, MBA Government Projects and Programs Managers highlights the results of the Aboriginal Participation in Construction Survey conducted by the MBA in December 2014. Master Builders Association of NSW (MBA) has signed an Industry Based Agreement (IBA) with the State Government in April 2014 that has the central purpose of promoting opportunities for Aboriginal employment and enterprise in the building and construction industry in NSW. One of the key tasks agreed under the IBA is to undertake an industry-wide survey, so as to identify various aspects of Aboriginal participation, training and enterprise opportunities in the building and construction industry. The results of the survey were presented to the NSW Government on 10 February 2015 to assist in the development of future government policy in relation to Aboriginal participation and procurement in our industry. The information below shows the results of the survey that was completed by Master Builders members. In summary: • 58 per cent would use MBA assistance in establishing an Aboriginal Participation Plan • 56 per cent are willing to provide an Aboriginal Culture Awareness course for their employees • 41 per cent responded they or an appropriate person in their organisation would be available to mentor an Aboriginal individual, who is considering setting up their own business • 29 per cent employ Aboriginal people • 88 per cent are Aboriginal males employed between the ages of 18 and 34 • 27 per cent are Aboriginal females employed between the ages of 18 and 34 • 47 per cent of Aboriginal people are in the carpentry trade, with 16 per cent in the civil trade and 12 per cent in the bricklaying trade • 53 per cent of Aboriginal people employed by the respondents are apprentices or trainees, 13 per cent as subcontractors, 13 per cent as supervisors and 9 per cent as project managers

“He taught me the power of encouragement. He taught me the reward of having a go where there seems to be no way up but, if you persevere – if you don’t ever give up – then you can achieve things which others think are impossible,” Andrew Forrest said of Scotty Black, Aboriginal stockman and mentor

• 50 per cent of Aboriginal people held a Certificate III qualification, 22 per cent held a Certificate IV qualification, 11 per cent held a diploma qualification, 5 per cent held an advanced diploma qualification and 8 per cent held a bachelor degree qualification • 62 per cent would utilise a database of job service providers and Aboriginal recruitment companies to employ an Aboriginal person • 51 per cent were unaware of incentives available to an employer for the employment of Aboriginal people • 5 per cent are fully or partially registered as an Aboriginal organisation • 76 per cent who completed the survey are builders with 12 per cent as subcontractors Contractors surveyed undertake work in three sectors of the industry: residential, commercial and civil.

The survey indicates the majority of Aboriginal people engaged are in the residential sector. MBA will introduce additional products and services for its members in the following areas: 1. Develop an Aboriginal Participation Plan in May 2015 2. Develop a database of organisations that deliver the Aboriginal Culture Awareness Course 3. Develop a database of job service providers and Aboriginal recruitment companies 4. Establish a portal to link Aboriginal and non-Aboriginal commercial, residential and civil organisations, Aboriginal owned businesses, suppliers and candidates For more information, please contact Omesh Jethwani by phoning 02 8586 3555 or emailing ojethwani@mbansw.asn.au

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

workplace health & safety

Master Builders renews its 2015/16 partnership agreement with WorkCover NSW. Photographed at the partnership signing ceremony (L-R) are Brian Seidler, Executive Director of MBA and Vivek Bhatia, CEO of WorkCover.

PARTNERSHIP TO CONTINUE FOSTERING SAFE WORK PRACTICES Master Builders has extended a partnership agreement that will further promote better work, health and safety in the industry. By David Solomon, Executive Safety Officer at MBA

WorkCover and the MBA will work together to advance the development of practical and effective approaches to work health and safety and injury management, under the new Statement of Intent. Master Builders Association of NSW (MBA) proudly renewed its partnership agreement (2015/16) with WorkCover NSW on the 3rd of March 2015, further cementing the relationship between the two organisations. As part of the latest WorkCover NSW Partnership Agreement 2015/16 statement of intent, MBA and WorkCover will advance the development of practical and effective approaches to work health and safety (WHS) plus injury management. In attendance for the signing was David Solomon, Executive Safety Officer at MBA; Robert Mayell, Construction Team Manager

at WorkCover; Bruce Bell, State Inspector at WorkCover; Brian Seidler, Executive Director of MBA; and Vivek Bhatia, CEO of WorkCover. Central to this commitment are: • Communication and consultation between WorkCover and MBA that focuses on improved WHS, injury management, returning to work and worker's compensation management across the construction sector • Leadership at each organisation that promotes and values improved WHS, injury management, returning to work and worker's compensation management • Genuine co-operation between WorkCover and MBA to promote the importance of effective WHS and injury management, as well as developing practical and costeffective solutions that deliver sustainable WHS, injury management, returning to work and worker's compensation outcomes

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

About WorkCover’s risk-based targeting strategy WorkCover has determined high-risk industry areas through analysis and consideration of: • Worker's compensation claims data • Consultation with industry • WorkCover compliance and experience under the National Compliance and Enforcement Policy • Public interest WorkCover is undertaking the following targeted programs: • Focus on industry including construction work • High consequence low frequency • Worker's compensation design strategy • NSW state-wide asbestos plan • Small business strategy

workplace health & safety

WORKPLACE VACCINATION IS A SMART INVESTMENT As winter approaches it is important for employers to consider having staff vaccinated against the influenza. By Fiona Curdie-Evans, Managing Director of Mend Services

Influenza is a not just a bad cold; it is a distinct illness caused by a virus and very contagious. The flu spreads through the air from a cough or sneeze, and you simply breathe it in. The person you catch it from may even seem well at the time and often you pass it on before realising you have it. So to protect your business from a loss of productivity, immunise every year well before the flu season starts.

A flu outbreak on the construction site could lead to costly delays due to worker absenteeism or impaired worker performance. Statistics show healthy employees vaccinated against the flu take nearly half the number of sick days, and half the number of doctor visits for upper respiratory illnesses compared to unvaccinated workers. The return on investment for a business is significant. The average length of time lost from the flu is five days.

How serious is influenza? Influenza affects people differently but should always be handled with care. The symptoms are like a severe cold with added muscle aches, fever and weakness.

Thousands of dollars in savings to be made A company with 250 employees could save $20,000 dollars in lost wages, if 70 per cent of their staff participated in the vaccination program.

A normally strong and healthy adult will be over the flu in a week. In the construction industry there is constant contact with people and the importance of working to deadlines is critical.

Benefits of vaccinating your workforce include: • Fewer lost workdays due to influenzarelated illnesses. A flu infected worker may be absent from work for four to six days

• Fewer days with reduced productivity. The flu may impair a worker's performance by between 20 and 40 per cent, which is comparable to the effect of alcohol consumption. This makes a flu-impaired worker a risk onsite • Flu is highly contagious: As one employee after another falls ill, the impact on your business performance could linger for weeks. In addition it strains healthy employees to complete the work required. For more information on the flu vaccine programme please contact Michelle O’Brien at Mend Services: Phone: 1800 300 011 Website: www.mendservices.com.au

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

legal

BEWARE OF SUBCONTRACTS THAT INCORPORATE OR REFER TO TERMS IN HEAD CONTRACT OR OTHER DOCUMENTS Subcontractors are warned to be wary of agreements that incorporate or refer to terms in the Head Contract or other documents. It follows the New South Wales Court of Appeal’s recent decision on Wright v Lend Lease Building Pty Ltd; Intercon Engineering Pty Ltd v Lend Lease Building Pty Ltd [2014] NSWCA 463 (Wright’s case). by David Bannerman and Ben Robertson of Bannermans Lawyers

In Wrights’ case subcontractors signed subcontracts, which effectively stated that retention would be released 24 months after practical completion had been reached under the Head Contract. The subcontractors did not see or read the Head Contract before signing the subcontracts, and the end result was they were left waiting for over five years for the release of their retention since completion under the Head Contract was delayed. Wright’s case serves as a warning to subcontractors that care must be taken where a subcontract refers to or incorporates terms or obligations under another document be it a: • Head Contract • Site Lease • Development Consent Approval The contractor should closely review, consider and price the effect of the terms in the subcontract. Lessons learned and action to take Subcontractors should ensure they have reviewed, taken advice on and priced the effect of key provisions of a subcontract. This may include the need to review the Head Contract, Site Lease or Development Consent, if these documents are referred to in the subcontract.

Once identified these risks may be managed by: • Making appropriate amendments to subcontracts to shift risks from subcontractors • Understanding risks in a subcontract, so that subcontractors can make appropriate commercial and tender pricing decisions

Accordingly, the Court will enforce subcontracts pursuant to the objective intention of parties based on a literal reading of the subcontract and its clauses. It is irrelevant to inform the Court that an individual subcontractor didn’t appreciate the consequence of a subcontract provision.

Subcontracts back-to-back with Head Contracts It is not unusual for key definitions and provisions in Head Contracts to be incorporated into the terms of subcontracts, often referred to as “back-to-back” clauses.

Rather, the Court will consider what a reasonable businessperson would understand the provision in a subcontract to mean (Electricity General Corporation v Woodside Energy Ltd [2014] HCA 7).

With pressures upon builders and subcontractors to secure new work and maintain relationships with large head contractors or principals, it is common for subcontractors not to review the wording of a Head Contract or other relevant documents referred to in the subcontract – prior to execution of a subcontract. In Wright’s Case the court held that it is no excuse for a subcontractor to later argue, “But I didn’t have the head contract when I signed the subcontract”, and thereby seek to unwind the effect of the Head Contract on the subcontract. In Wright’s case the Court of Appeal relied on the recent decision of Mainteck Services Pty Limited v Stein Heurtney SA [2014] NSWCA 184 in reiterating that to supply, omit or correct words in a contract two things must occur: 1. The literal meaning of the contractual words must be absurd 2. It must be self-evident what the objective intention was to be taken

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

The NSW Court of Appeal in Wright’s case accepted findings of the primary judge in the NSW Supreme Court, his Honour Justice Ball, the commercial purpose of the retention money arrangement under the subcontracts was to avoid the head contractor releasing subcontractor guarantees or retention amounts, before expiration of the defects liability under the Head Contract. Effectively, the subcontractors’ failure to review the terms of the Head Contract in the first instance appears to have resulted in the subcontractors executing subcontracts without appreciating the retention monies would be held until expiry of the defect liability period under the Head Contract which – at the time of the judgment – had still not expired some five years after completing the subcontracts. For more information: Phone: 02 9929 0226 or 0403 738 996 Website: www.bannermans.com.au

legal

MAJOR CHANGE ANNOUNCED TO THE WAY MONIES ARE KEPT Recent changes to rules governing how subcontractor monies are retained in trust accounts, mean builders need to make sure they are up to speed or face possible penalties. The Building and Construction Industry Security of Payment Amendment (Retention Money Trust Account) Regulation 2015 requires head contractors to hold subcontractor retention monies in a trust account. Who is affected? The Regulation commences on 1 May 2015 and applies to projects where the Head Contract is valued at $20 million or more. Where a variation increases the Head Contract value to above $20 million, the Regulation will only apply to subcontracts entered into after the date of variation. What you need to do Head contractors must hold retention money in a trust account with an authorised deposit-

taking institution, and give notice to the Chief Executive of the Office of Finance and Services when a retention trust account is opened. A head contractor cannot withdraw from the trust account, except in accordance with the terms of the relevant contract. For example, it is possible to withdraw if the contract allows the head contractor to access retention monies to rectify defects. The head contractor may establish a single trust account for: • all retention monies • all retention monies for a particular project • retention monies held for a particular subcontractor

Record keeping At the end of each financial year, head contractors must provide the Chief Executive, with an account review report from a registered company auditor and a retention account statement. For more information please contact MBA Legal Lawyers: Phone: 02 8586 3517 Website: www.mbansw.asn.au/Services/ Legal/Legal-Department

Protect your business when an incident occurs When an incident occurs you should get the right advice when you need it most. Our expert legal team is ready to assist you with all your requirements including: • safety • environmental • industrial

• contract disputes • investigations by the regulator

Call us on our Incident Response Hotline 24 hours a day

1800 HR LAWYER

Melbourne . Sydney . Brisbane www.holdingredlich.com

Master Builders Cranes- March 2015.indd 1

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finance

UNDERSTANDING PROFESSIONAL INDEMNITY INSURANCE Protect yourself from legal action against professional services you provided with professional indemnity insurance. By Edwina Lyall, Senior Account Manager at MBA Insurance Services

Professional Indemnity (PI) or Errors and Omissions (E&O) is one of the most broadly misunderstood and complex insurance products available to construction industry participants. PI insurance protects you from claims made against you, which arise from your professional services. This includes claims for pure financial loss, where there is no property damage or personal injury. Public Liability Insurance (PLI), on the other hand, can totally or partly exclude liability arising from professional advice or professional services. Some PLI policies only exclude liability arising from professional services provided for a fee. Others exclude such liability completely, but write back cover for property damage or personal injury. If you are relying on PLI for protection against professional risks, Master Builders recommend you check the relevant exclusions in your policy. Types of professional services covered For a builder or construction consultant, the professional services typically covered by PI insurance include: • Advice on design, materials, consultants, contractors, specifications, relevant laws and industry codes of practice • Design • Drafting • Assessments • Project management • Construction management • Feasibility studies • Inspections • Quantity surveying • Programming and time flow management • Surveying • Technical calculations • Quality control • Testing and commissioning • Certifications

Types of claims Clients, developers, consultants, property owners, councils, government agencies and insurers can make claims against builders, for any of these parties subrogating against or joining the builder into an action. Claims can involve allegations of negligence and stem from design failure, inadequate or incorrect advice, wrong specifications, inappropriate or unsuitable certification, lack of experience, incorrect documentation, misleading or deceptive conduct and intellectual property infringement. Who bears the risk? Professional services may be provided to a client for a fee or form part of a larger contract to construct, remediate, fabricate, supply, install and demolish anything. Professional services may be carried out inhouse or undertaken by external consultants.

Builders will bear the risk for any professional services carried out in-house. If the builder signs a Design and Construct contract, the builder will assume or bear the design risk. This is irrespective of whether the design is carried out in-house or provided by an external designer or architect. If a design is novated to the builder, the builder will assume and bear the design risk. Because every contractual situation is different, it is important to discuss with your broker the relationship between professional risk and your specific circumstances. Key policy issues PI insurance policies tend to be complicated and vary widely in scope and quality. Examples of key issues for a builder or construction consultant are highlighted below.

Professional services definition

The policy schedule will specify professional services covered by the policy. Some policies include a definition in the wording itself. Regardless of the approach, this is key to a claim being paid and should be reviewed with care.

Consultants, contractors and agents

Covers vicarious liability you incur for any act, error or omission of your consultants, contractors and agents while providing professional services.

Loss mitigation and rectification

Covers reasonable costs incurred by you to avoid or mitigate a claim under the policy. It is essential cover, giving you the opportunity and means to fix an act or omission before it leads to a claim.

Novated contracts

This typically relates to design undertaken by another party and novated to you by a client. You may also assume liability by purchasing or acquiring another business or contract.

Proportionate liability

Covers additional liability taken on where you contract out of proportionate liability legislation.

Contractual liability

Covers your professional services, where a claim arises because a contract requires you to indemnify or hold another party harmless.

Multiple causes of loss

This applies where there is more than one cause to a loss, but not all of the causes are covered. Rather than exclude the whole loss, this endorsement allows cover for the covered part of the loss.

Retroactive date

This excludes claims arising from professional services provided before the retroactive date.

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

finance

These clauses vary in scope and there are other clauses to review. Depending on the nature of your business or services, a clause in the policy may remove or restrict much needed cover or be viewed irrelevant.

A PLI policy, on the other hand, is an “occurrence” policy. This means the policy to respond to the claim is the one in place when the work was performed and the injury or damage occurred.

Claims made vs occurrence When a PI insurance policy is described as “claims made”, it means the policy to respond with what was in place when the claim was being made against you.

If you need help understanding your policy or require a policy with broader cover, please do not hesitate to contact Master Builders.

For this reason, PI insurance needs to be kept in place after the professional services have been provided. Contracts usually require a period of seven years. If you stop providing professional services or stop trading, the PI insurance policy needs to be run off to maintain insurance protection.

PL Insurance Occurrence 2015 PLI

PL policy to respond Claim made 2017 PL policy to respond

Estimating - Provide accurate, cost-effective estimates. Contracts - Variations, Purchase orders and track all your onsite activities. Add BEAMS Mobile for your Supervisor and you’ll never suffer scheduling nightmares again. Accounts - Full accounting functions with Taxation processing and Payroll with job allocation to timesheets. Beams Prospects - Focuses on presales where the relationship between a company and the customer is managed. This includes capturing leads from the website, emails and correspondence. Beams Administration - Track the job as it progresses to contract or conversion. Customise as many processes as necessary to cover all your requirements. Beams Customer Portal - Communication between your customer and your company is managed. They are given a username and password so that they can check their job status and request more information. Ph. (08)9454 7760 fax. (08)9454 7782 Web. www.beamsbuild.com.au email. enquiries@beamsbuild.com.au

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finance

MINIMISE TAX LIABILITY WHEN PURCHASING YOUR NEXT COMPANY VEHICLE There is a simple way to reduce your Fringe Benefits Tax liability according to a leading industry advocate By Ogarit Kelley of Master Builders Financial Services

Did you know Fringe Benefits Tax (FBT) is separate from income tax? It is and a business may be liable for FBT on benefits provided to employees, including work cars used for private purposes, low interest loans, housing, entertainment or insurance expenses. If employees or directors are allowed private use of a business work vehicle, your business may be liable to lodge a return and pay FBT based on the vehicleâ&#x20AC;&#x2122;s taxable value.

Your business may save a substantial amount on FBT, if vehicles provided to employees are vans or utes with a carrying capacity exceeding 1 tonne and deemed to be an exempt benefit. The FBT year runs from 1 April to 31 March, and businesses are required to calculate FBT, lodge a return and pay any FBT owing to the Australian Tax Office. An important change to note is an increase in the FBT rate from 46.5 to 47 per cent.

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If you are about to purchase a vehicle for yourself or staff and want to reduce your FBT liability, contact Ogarit Kelley from Master Builders Car Search and Finance by phoning 1300 760 366. As an MBA member you will receive the best service with car pricing and finance.

technology

FREE AND EASY WAY TO SIMPLIFY TAX FOR BUILDERS The improved Australian Tax Office (ATO) app is touted to make life easier for taxpayers. The latest update offers even more tax and super products at your fingertips – anytime and anywhere. ATO Deputy Commissioner Steve Vesperman explains how by simply downloading the app you can save time and money. Plus you can use the app to subscribe to the latest news articles, videos and important tax dates via the Small Business Newsroom. Are there specific features for employers? The app has other handy features to help employers: • Book an after-hours call back from the ATO • Find out if your employee is eligible for the Super Guarantee • Calculate the amount of tax you need to withhold from salary and wage payments • Work out if your worker is an employee or a contractor for tax and super purposes More than 95 per cent of Australian businesses are online and smartphone use is at an all-time high, according to the latest Sensis e-business report. The ATO knows that business owners are busy and need to find important information easily. The Australian Communications and Media Authority predicts that by 2017 smartphone use in Australia will reach saturation, so the ATO app is helping people meet their tax and superannuation obligations. With the number of downloads fast approaching 500,000 more businesses and taxpayers are benefitting from the new ATO app. Builders can use the app to: • Look up an Australian Business Number • Check if your suppliers are registered for Goods and Services Tax • Get reminders for important lodgement and payment dates (this feature depends on your device) • Book an after-hours call back from the ATO • Set favourites so you can easily get to the tools you use most often You can also access Small Business Assist, which is an online service that provides easy access to information. Simply type-in a question and it provides information from a range of websites.

If you are employing people who are entering the workforce for the first time the ATO app can help start things off smoothly. The app points you in the right direction for individuals applying for a tax file number, information about the work-related expenses they can claim and more. Having this info at hand will get the paperwork done quicker and more easily. What’s new with the latest update? To keep up with what people want, ATO have updated the app several times since being launched 18 months ago. The app has been updated with even more tools to help you manage your tax and super. If like thousands of business and individual taxpayers, or use the ATO’s app to save time and effort with your tax and super, the upgraded version is promised to make it easier.

• A ‘favourites’ feature so you can save services for later easy access • Videos targeting self-managed super fund members The app has a feedback function so users can let us know what they think, and this helps ensure it continues to be a user-focused product. How can the app help those starting a small business? There are risks you can avoid when starting a new business. Good planning, particularly around administration, often contributes to success. So it makes sense to streamline as much of your reporting obligations as possible. The huge list of tools and calculators that this app puts in the palm of your hand can make it as efficient and simple to meet your tax obligations. This way you can spend more time on growing your business. When it comes to lodging your tax return online, most small businesses lodge through their tax agents, but sole traders or partners in a partnership can use e-tax, which is free, convenient and secure. The app has information on how to lodge and can point you in the direction that is best for you. You can download or update the app free from Google play, Windows Phone Store and the Apple App Store. For more information go to: www.ato.gov.au/app

The latest update includes: • Better record-keeping feature means you can save app tool results within the app and share them via PDF or email • Fuel Tax Credit calculator now caters for split rate periods • New design tailored to different platforms such as Apple, Android and Windows phone M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

industrial relations

TRADE UNION ROYAL COMMISSION CONTINUES INTO 2015 WITH A POLICE TASKFORCE Master Builders Construction Director Peter Glover analyses the latest developments of a high-level probe into trade unions. The Royal Commission into Trade Union Governance and Corruption is continuing hearings until it publishes a final report at the end of 2015. Originally expected to produce its finding and recommendations by 31 December 2014, the timeframe and scope of inquiry was extended in October, following recommendations by Commissioner Dyson Heydon AC QC. His Interim Report was tabled in Federal Parliament on 19 December 2014. It identified key concerns about the use and operation of union election slush funds. It states they operate largely in secret, having deficient or non-existent record-keeping with candidates commonly pleading ignorance on how money is raised and spent. Report recommends tough action against union officials The report recommends consideration be given to charging and prosecuting former Australian Workers Union officials Bruce Wilson and Ralph Blewitt, for fraudulent conduct. It also recommends that consideration be given

to charging and prosecuting CFMEU Victorian State Secretary John Setka for blackmail. During 2014 the Commission conducted more than 70 public and private hearings, involving more than 220 witnesses in Sydney, Melbourne, Perth and Brisbane. Due to the amount of evidence collected by the Royal Commission into Trade Union Governance and Corruption, a Police Taskforce has been established to investigate criminal activity. The taskforce commenced operation in January 2015 across New South Wales, Victoria and Queensland. The Police Taskforce consists of State and Federal Police, and seeks information from persons within the building and construction industry to assist in these enquiries. Master Builders supports Trade Union Royal Commission The Master Builders Association (NSW) continues to support the Trade Union Royal Commission, and is supportive of a Police

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Taskforce â&#x20AC;&#x201C; and asks members to report and supply information and evidence of corrupt or criminal behaviour by union officials. An email has been created for the public to contact the Royal Commission Police Taskforce directly on policetaskforce@turc. gov.au or contact the Trade Union Royal Commission Hotline 1800 221 245.Â All information provided will be handled confidentially and you can remain anonymous.

industrial relations

PRODUCTIVITY COMMISSION REVIEW OF WORKPLACE RELATIONS FRAMEWORK A high-profile regulatory review is promoting more jobs, better work conditions and an improved trading environment for small-to-medium enterprises. In late December 2014, the Federal Government released terms of reference for its inquiry into Australia’s workplace relations framework, which will be conducted by the Productivity Commission. Terms of reference are broad and mention job creation, fair and equitable conditions for employees, productivity, competitiveness, business investment and meeting the needs of small business. The Commission has been asked to identify potential improvements to workplace laws about protecting workers, and the need for business to grow and employ. Australian Minister for Employment Senator Eric Abetz said if the Commission makes a

“good case for sensible and fair changes”, the government will seek a mandate at the next election. Master Builders has made a substantial submission to the Commission. The submission contains the following recommendations: Recommendation 1 That recommendations 13.1 and 13.2 from the Public Infrastructure report be included in the current report’s recommendations to government. Australian, state and territory governments should adopt codes and guidelines, with an essentially similar framework to the Victorian Code of Practice for the building and construction industry, for their own major infrastructure purchases.

The Australian Government should require compliance with these guidelines as a precondition for any infrastructure funds it provides to state and territory governments. The Australian Government should: • increase the ceiling of penalties for unlawful industrial relations conduct in the construction industry • ensure the specialist regulator has adequate resources to give a genuine and timely effect to the enforcement regime Recommendation 2 Delete s3(c) of the FW Act and give greater emphasis to producing productivity.

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industrial relations Recommendation 3 That ABCC Bills be passed by Parliament and their content be endorsed by the Productivity Commission as suitable for the building and construction industry. Recommendation 4 That weekly hours under the NES be able to average more than the maximum of 52 weeks. Recommendation 5 That payment for public holidays only be available where an employee is providing service as defined under s22 FW Act. Recommendation 6 That sections 66 and 112 of the FW Act be repealed. Recommendation 7 That section 130(2) of the FW Act be repealed. Recommendation 8 That modern awards be further rationalised as to content and that they sunset after a period of five years. Recommendation 9 The system should transition over the period where awards were reduced, so at the time of the sunsetting of awards there is one minimum wage-rate for juniors and one minimum wage rate for adults in place.

Recommendation 14 That the workplace relations system permits IFAs to be about any matter pertaining to the employment relationship, and that a provision to that effect be a mandatory term of an enterprise agreement. Recommendation 15 That an exemption from unfair dismissal be introduced for businesses employing fewer than 20 people. Recommendation 16 That an unfair dismissal remedy be unavailable where an employer has a valid reason for dismissal and provided appropriate written warnings. Recommendation 17 The phrase “termination of employment” should be used to describe what is now outlined in Part 3-2 of the FW Act. Recommendation 18 Laws defining a valid reason for redundancy should be confined to termination for reasons based on operational requirements of the employer’s business. Recommendation 19 Section 347(b)(v) of the FW Act should be removed, as it unfairly protects union members from legitimate disciplinary action against their behaviour as employees.

Recommendation 10 There should be more robust measures in workplace law to discourage pattern bargaining, inclusive of a proscription on the grant of a protected action ballot order where pattern bargaining has occurred or is occurring.

Recommendation 20 The test for whether adverse action has occurred should require a comparison of whether action taken against the employee concerned would have also been taken against other employees in the same circumstances.

Recommendation 11 That s176(1)(b) of the FW Act be repealed and that bargaining representatives be appointed in writing by any employee eligible to be involved in the bargaining process.

Recommendation 21 Section 360 should be amended so an employer will be only deemed to have taken action for a particular reason, if it is the sole or dominant reason.

Recommendation 12 That employer greenfields agreements be reinstated.

Recommendation 22 Adverse action applicants must show reasonable grounds for their application during conciliation conferences before the FWC.

Recommendation 13 That the exception at s412(2) be removed, such that a person cannot be held to be genuinely trying to reach an agreement if they are pattern bargaining.

Recommendation 23 Having access to an interim injunction before proceeding to conciliation should be abolished. The reverse onus of proof provision required in adverse action cases should be amended to provide an exemption for small business employers.

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Recommendation 25 That consideration be given to repealing antibullying laws and focusing resources on this subject towards WHS regulations. Recommendation 26 That the ABCC be vested with concurrent jurisdiction to combat secondary boycott activity in the building and construction industry. Recommendation 27 Master Builders recommends that laws be changed to ensure an enterprise agreement, which prevents, hinders or restricts a business in acquiring goods or services from – or supplying goods or services to another business – does not fall within the exemption in section 51(2)(a) of the Competition and Consumer Act. Recommendation 28 Master Builders recommends no change to sham contracting laws. Recommendation 29 In summary Master Builders’ recommendations are that: • commercial law categorically govern independent contractors with provisions, which regulate their contract via workplace agreements made unlawful • a voluntary negative licensing registration system should be introduced • individuals have the right to seek registration as a contractor • the system be underpinned by requiring applicants to provide evidence from a legal practitioner, or other suitably qualified professional that circumstances of the worker have been assessed as those of a contractor • provide registration only in relation to the contractor’s circumstances as assessed by a relevant professional • provides registration that is time limited • has the consequence of individuals being precluded from registration where the system is abused Recommendation 30 That simpler transfer of business rules be introduced. Recommendation 31 That the Queensland model of 24 hours’ notice for investigative entry under model work health and safety laws be adopted nationally. Federal Government is expected to be handed the enquiry report in November 2015.

industrial relations

POLICY BACKFLIP ON DRUG AND ALCOHOL TESTING

BULLYING AND ADVERSE ACTION UPDATED The Fair Work Commission has released its Anti-Bullying Report for the first quarter of the 2014/2015 financial year. The Anti-Bullying Reports released since the Fair Work Commission (FWC) came into effect in January 2014, show that after receiving more than 530 applications for anti-bullying orders in the first nine months of the jurisdiction’s operation, FWC has only issued one order to prevent a worker facing further risks. This order was later revoked, after the applicant claimed the FWC process had all but eliminated the conflict. In the three months to September 2014, employees lodged 163 of the 189 applications made, and 126 of the 189 have been made against managers. The clerical (28) and health and welfare (21) sectors represent the largest number of

applications from industry. Geographically, New South Wales employees lodged the largest number of applications (62). The latest FWC Annual Report shows the 60 applications received per month is much lower than the predicted 70 applications each week. Due to the unique nature of the jurisdiction, the report said it is “impossible” to predict the future trend of applications. However, results showed a “gradual increase in applications lodged each month”. Meanwhile, adverse action claims have continued to soar, with 781 lodged in the April to June 2014 quarter, and a new high of 877 in the same three months to 30 September 2014.

The Construction, Forestry, Mining and Energy Union (CFMEU) recently announced it has reversed its policy. CFMEU now supports mandatory drug and alcohol testing in the workplace. The union claimed that it was changing its policy from opposing to supporting the testing. The decision comes out of growing concern from CFMEU members about the safety risks involved in working with someone who is impaired as a result of an addiction or substance abuse.

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membership

TAKE YOUR BUSINESS TO THE NEXT LEVEL The future success of your business can depend on the strength of your marketing plan. However, this does not necessarily mean creating a plan will carry an additional expense, thanks to your Master Builders membership benefits. By Graham McGuiggan, Manager Member Services

Most businesses have budgets they operate within whether it be sales or revenue budgets, expense budgets and, most importantly, the household family budget. A marketing plan is an essential part of your business success. However, it does not necessarily involve an extra cost, provided you take advantage of your Master Builders (MBA) membership benefits. Here are some useful tips for smallto-medium businesses to stretch your marketing dollar further: 1. Members can use MBA's widely recognised logo on business stationery, such as business cards, quotations and letterhead

2. Vehicle stickers promote to the public you are a MBA and belong to an industry association 3. If you are a residential builder or tradesman you should register your business on the “Find a Master Builder” website, which is regularly used by the public to find reputable local trade businesses 4. Networking with your fellow members at MBA events, trade shows, seminars and division information nights can provide useful leads and work opportunities 5. Download our “Code of Ethics”. This brochure is a handy inclusion to accompany quotes for work

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The Code of Ethics document can also be downloaded from the website under the Membership tab and drop-down menu under Member Forms. For more advice on marketing your business, please contact the member services department or check out member discounts on our website for marketing and web design. Feel free to introduce yourself to local MBA staff or representatives. They can refer reputable businesses to the local community. For more information: Phone: 02 8586 3555 Email: membership@mbansw.asn.au

dates for your diary

DATES FOR YOUR DIARY

12 POINT CPD SEMINAR Castle Hill

22 APR

Ballina

14 MAY

TRADE EXPOS Sutherland

27 MAY

Manly

17 JUN

REGIONAL ROAD SHOWS Grafton

29 APR

Taree

30 APR

Orange

3 JUN

Blue Mountains

4 JUN

DIVISION Central Coast

6 MAY, 3 JUN

Central West

20 MAY

Eastern Suburbs Hume

28 APR, 26 MAY 3 JUN

Illawarra

7 MAY, 4 JUN

Inner West

19 MAY

Manly Warringah

14 MAY, 11 JUN

Manning/Great Lakes

5 MAY

Mia

6 MAY

Mid North Coast

18 MAY

North Coast

19 MAY

Northern Suburbs

16 APR, 21 MAY

Orana

21 MAY

Oxley

6 MAY

Parramatta Cumberland Riverina

15 APR, 20 MAY, 17 JUN 7 MAY, 25 JUN

Snowy Mountains

27 MAY

South Coast/Shoal

20 MAY, 17 JUN

Southern Highlands

12 MAY, 9 JUN

St George

21 APR, 23 JUN

Tweed

20 MAY

For all events visit our website www.mbansw.asn.au

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

commercial vehicles

DON’T FORGET SAFETY WHILE BARGAINING FOR A

NEW COMPANY CAR End of financial year sales offer an excellent opportunity for businesses to focus more on safety while minimising vehicle cost, according to the underwriters for NRMA Insurance.

For many people the importance of locking in cost savings from the end-of-financial-year sales (EOFYS) on new motor vehicles can cloud their judgement.

EOFYS provide an opportunity to increase the focus on improving safety while minimising cost. Rather than focusing on reducing overall cost, consider improving safety at the budgeted cost.

A focus on reducing vehicle cost is great, but it should not give priority to improving the safety and environmental impact of the vehicles they are providing for their employees.

So if the company has budgeted $20,000 for a base model vehicle with a five-star ANCAP rating and, at sale time, they can possibly get a top-of-range model vehicle for the same money and then consider upgrading rather than reducing the cost. The upgraded model will generally provide better safety with lower environmental impact.

The introduction of a safety-first culture is a positive step in showing your employees their safety will not be compromised to get a good deal on a new car. How many times do you hear employees complaining about the quality of the car they have been provided? How many times have you said “that’s the car the company can afford”. Procurement and fleet managers strive for cost-saving benefits and safety alignment to the five-star ANCAP rating. That is a great start but should use the opportunity of EOFYS to improve the safety of their fleet and reduce its environmental impact.

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Capitalise on this opportunity to engage with employees in the selection process and let them know about the budget. Set safety and environment-impact guidelines, and strive to get employees behind the wheel of a car they feel comfortable driving. Don’t be too hasty with cost reduction Cost reduction is of course an important part of running a business, but take some time to reflect on your fleet incidents, accidents and the injuries they cause, and the unmeasurable costs you are incurring from these incidents.

advertorial

RENAULT’S MULTI-PURPOSE MASTER DUAL CAB READY FOR ANYTHING Renault is homing in on its target of being the most successful European LCV brand in Australia, aiming to emulate the 17-years of unbroken leadership it is enjoying in the European LCV market. Underpinning this success is a dealer programme dedicated to meeting the needs of customers who rely on their trucks to get their jobs done. Renault knows there’s a big difference between customers who buy LCVs and those who buy passenger cars, so each group gets a unique focus. The new Renault PRO+ LCV dealer concept, which has just opened at Brighton Renault in Melbourne, and Main North Renault in Adelaide, moves customer service for LCV buyers to the next level. Each Renault PRO+ dealer has a full range of Renault LCVs on display, including converted vehicles, and that’s not just a Cab/Chassis with a tray, but, for example, could be a tipper body, a box van, or a van fitted up with internal racking. Renault PRO+ dealers each have an LCV expert on hand to talk product as well as the ins and outs of conversions and bodywork.

When it comes to servicing, Renault PRO+ dealers are open extended hours that are convenient to business customers, and there are service loan vehicles available to keep you mobile. Several more PRO+ dealerships will come on line through 2015.

And its new generation high efficiency twin turbo engine sips fuel even when churning out 360Nm of torque.

The PRO+ launch coincides with the arrival of the refreshed Master large van and Cab/Chassis range, and the new mid-size Trafic van available in two lengths.

With up to 30,000km between dealer visits and Renault’s impressive capped price servicing at $349 for the first 3 scheduled services, plus the standard factory warranty of 3-years/200,000km, you’ll be able to get an awful lot of things done while being protected by Europe’s number 1 LCV brand.

The Master Dual Cab is one of the most versatile and driver-friendly vehicles on sale anywhere. It’s a 7-seater people mover, a 2-tonne Ute or a 3-tonne tow vehicle for your tools and toys all in 1.

Find out how the Renault Master Dual Cab can boost your work/play lifestyle at www.renault.com.au or see your nearest Renault dealer. There are now 46 dealers nationwide, so there’ll be one near you.

Even if you’re not toting 6 mates all the time, the spacious cabin with heaps of headroom means lots of comfort for friends or family when heading bush or beach. With the huge payload and towing capacity, no toys need be left behind.

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commercial vehicles

Understand the cause Reflect on the data your insurance company provides to you to understand the cause of incidents and accidents, and use this to determine if the vehicles you are selecting are suitable for your employees – or if there is maybe a better choice. Your insurance company can also provide you with guidance on vehicle selection. Comparing vehicles and establishing minimum requirements help make the decision on your vehicle selection more complete and less just about cost. Consulting safety and environmental research, claims data experience and risk management tools available from your insurance company will also help you make the right decision. Be clear on your priorities Set criteria to determine your priorities – environmental, driver and passenger safety and cost budget. If times are tough and you need to tighten the belt then utilise EOFYS time, but do consider the unseen cost and heightened risk exposure if you change the quality goalposts. Finally, let me share some common scenarios we hear as motor risk management experts – all of which could be avoided through better vehicle purchasing decisions. My company got a great deal on a particular make and model car and that’s all they can get – I get to choose the colour. In some cases employees have said, “I’ve got this massive car and can’t see anything when reversing”.

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Another classic response is “I get a SUV because I working in rural areas, but no one has considered that I can’t get into the car and feel uncomfortable driving at high speeds because I don’t have control of it”. You know the sales are coming so do your homework beforehand, consult your staff and start to get an understanding on what you could do to improve the safety culture in your business. About CGU Insurance CGU is a leading commercial, rural and personal insurer and a major provider of workers compensation insurance. They offer market-leading products and outstanding service, backed by a 160-year heritage, national reach and the financial strength that comes from being part of Australia’s largest general insurer, Insurance Australia Group. At CGU, they give customers and partners the confidence to plan for tomorrow because they know when they need them, they will see it through. Peter Divjakinja is national risk manager – motor at CGU Insurance. For more information: Phone: 13 24 81 or 03 9601 8222 Website: www.cgu.com.au

MASTER L1H1 MANUAL SHORT WHEELBASE

FROM

$ 3

YEARS

SERVICES

200,000 KM WARRANTY

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CAPPED PRICE^

990* DRIVE AWAY

termite management

The updated termite standard, AS 3660.1-2014, has been written to tightly integrate with the 2015 National Construction Code (NCC). A prominent pest control expert reveals this will provide new opportunities and greater flexibility, but warns there are a few traps for the unwary. By Dr Don Ewart, spokesperson for the Australian Environmental Pest Managers Association and chair of Standards Australiaâ&#x20AC;&#x2122;s termites committee

Termites are a vexing issue for the construction industry right across Australia, with the lucky exception of Tasmania, where it apparently is either too cold or they just haven't yet made it back after the last ice age. That said, in the Australian Alps, termites do occasionally turn up in ski chalets. Consequent to this widespread risk, mainland Australia has a well-developed and innovative termite management industry that is in many ways a world leader. Chances of a termite attack varies Depending upon where and how you build, the chance of termite trying to attack during a building's service life varies between about one in 20 to almost a dead certainty. Termite risk varies enormously, and it helps to know the local facts before your build. Your professional pest manager can impart some useful insights. The Construction Code's approach to risks is broadly to mitigate against structural failure. The NCC approach means a builder can use resistant materials for all primary load-bearing members. This still allows termites free entry to do other such internal damage as they please, which usually extends to trims, cupboards, fixtures, floor coverings and even clothing in wardrobes. It can mean a builder ripping out a kitchen and stone bench-tops, and fixing lightly damaged cupboards. In addition, termites can sometimes chew insulation clean off electrical wiring. So it is safer to follow Standard Australiaâ&#x20AC;&#x2122;s whole-of-

house approach, which attempts to exclude termites from a structure.

deter termites from getting access where they can't be observed.

The most common resistant material paths involve concrete slabs, and a frame of either steel or treated pine. None of these will slow termites. The photo shows a field test of less than two months after installation, with termites having built their tube over concrete to the underside of a treated pine bottom plate.

It specifies inspection zones through which subterranean termite pests must cross on their journey from the ground into the building. The minimum inspection zone is a 75mm path. It is not a magical number, but a measure chosen to provide an inspectable zone that's unlikely to be covered by debris in a well-maintained house.

Standard aims to deter unseen termite access While it isn't possible to permanently exclude all termites (they can always fly in via an open window), the standard aims to

It is a convenient measure â&#x20AC;&#x201C; the height of a regular brick or half that of a regular concrete block. This dimension is adequate because termites are strongly averse to working out in the open and with regular inspections any

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advertorial

THE IMPORTANCE OF PRE-CONSTRUCTION TERMITE BARRIERS Without doubt the options available in pre-construction are vast and cover many different technologies. One thing that hasn’t changed over time is the need for competent professionals to ensure selection, installation and management of these termite management systems (TMS) to ensure trouble free service life. Bayer’s Kordon Training Manager, Neville Hedge, has been through the transition from a hand spray dominated market to today’s physical barrier dominated market where he sees preconstruction termite protection today and more importantly tomorrow. The general public when considering termite protection to their new home are reporting to all and sundry the confusion that reigns when being faced with this decision. We can only hope that home owners are afforded the opportunity to be involved in the decision making process because I feel those who may be making decisions on their behalf are not always up to the task themselves. Unfortunately “all I want is a Cerificate” is still a catch cry.

One would expect, given the pre-construction debacle throughout Australia where thousands of homes were treated with liquid termiticides prior to 2000, with what could best be described as ‘smelly water’, that the “all I want is a Certificate” mentality was dead and buried. It is a sad fact of life that a lot of people have short memories. That being said, the introduction of physical barriers into the pre-construction market has reduced the instances of termites gaining access to our buildings but we all need to be vigilant with the seemingly huge numbers of new systems entering the market. The pre-construction market has become increasingly competitive, to the point that to compete is almost impossible to ensure correct installation of a product.

After all, there is only one chance to correctly install a physical termite barrier during construction; once the walls are up; it is very difficult to see how the barrier is installed, this is why it is extremely important that it is installed correctly the first time, a termite barrier is one of the most important components of dwelling construction, you should never cut corners. Remember to ask your chosen company to detail how the installation will take place, especially paying particular attention to the fit to bricks, this is the most critical part of the system, make sure they are returning to complete this important component. Most importantly remember, cheapest is never best when it comes to correct installation of termite management systems! For more information contact: Website: www.kordonwarrantycentre.com.au

Trust Kordon. 30001

Still the Australian Standard in Termite Protection.

Kordon provides a physical and chemical barrier to termites and can be used for perimeter or full under-slab protection. It is quickly and easily installed in all building applications by Bayer’s Accredited Kordon Network and is certified by the Australian Building Code. www.kordontmb.com.au BAY0083 BAY0083 Master Builder Magazine 130x180mm.indd 1

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termite management

attack can be found before significant damage occurs. It is a system that's served Australia well for two decades. For builders, which termite system to use is often decided on perceptions of cost, liability and the impact on construction sequencing. Cost is relatively easily worked out from quotes but, if quote is too low, the work quality is likely to be inadequate. Resistant-material method proves low risk Where a builder goes the resistant-material path, or is a contributor to the process, much liability may be retained. Getting a termite management business to specify and install components is generally believed to transfer responsibility, but care must be taken wherever the builder is involved with any component placements beyond the termite-resistant concrete slab. For example, a question of responsibility arises when a technician attaches sheet material to the perimeter wall-frame for the bricklayer or others to position. The sheet is supposed to be visible on the outer wall. Similarly the builder must ensure no following trades negate a termite technician's work. While the 2000 standard specified barriers for termites, the 2014 version dropped

that term at the request of the Australian Building Codes Board and the Australian Environmental Pest Managers Association, in favour of termite management systems and their various components. Aside from forcing a word change, this eases the introduction of innovative approaches to meeting the needs of AS 3660.1 as basically any system can now be adopted, if it survives the rigorous testing specified in the sister AS 3660.3 standard. The main systems in use are still the concrete slab, chemicals applied as either liquids or in sheets â&#x20AC;&#x201C; or other solid components â&#x20AC;&#x201C; and the physical barriers, dominated by Granitgard, Termi-Mesh and sheet metal. Whatever you choose it should have Standards Australia compliance or be installed according to a Codemark certification, and you should have installation and maintenance details to provide the customer at handover. Cutting to the chase What does cutting to the chase mean for NSW builders? Not a lot has changed, but it is a good time to review your specifications and update to the new wording. AS 3660.1-2014 allows collars on plastic pipes to be much narrower, requiring chemical products to have

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Australian Pesticides and Veterinary Medicines Authority registration and doing away with the specification for durable notices. Of course, you still need the durable notices but the standard no longer duplicates any provisions of the Building Codes Committee (BCC). The standard and BCC need to be read together, which is much easier now the BCC is freely available. A copy of AS 3660.1-2014 can be purchased online. Dr Don Ewart is a consulting scientist and educator who has been working in termite management since 1994. He is the current chair of Standards Australiaâ&#x20AC;&#x2122;s termites committee and teaches pest management for Melbourne Polytechnic. For more information: Phone: 1300 307 114 or 07 3268 4210 Website: www.aepma.com.au

Images: courtesy Gold Coast Tourism

BUILDING AUSTRALIA Master Builders National Conference ®

Jupiters, Gold Coast,12-14 November 2015

Register Super Early and Save $300 The Master Builders biennial National Conference is heading to the Gold Coast in November, for what will undoubtedly be the industry event of the year once again. Unlike many traditional industry conferences that have a program full of just technical sessions the Building Australia conference stands out amongst the rest. The Master Builders National Conference ‘Building Australia’ focuses on leadership and assisting members to make informed decisions in continuing to grow their business whilst developing and maintaining strong leadership attributes within their business ethos. With high profile speakers that will examine the building industry outlook and topics relevant to today’s building and construction industry. The conference program and registration including partners and social program will launch in mid-May along with a Super Early Bird end of financial year special registration price. Super Early Bird $770, 20 May to 30 June, Save $300 on the Standard rate by registering super early! www.masterbuilders.com.au/Events/national-conference The Master Builders Excellence in Building and Construction Awards will be presented as part of the National Conference on the Saturday evening as the grand finale to an exciting conference on the Gold Coast…………We look forward to seeing you there!

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waterproofing

SOLVING

DAMAGE ISSUES WITH Nearly 80 per cent of building faults in sub-basements and car parks are related to waterproofing failures, making ineffective waterproofing one of the biggest problems faced by the building industry today, according to the Australian Institute of Waterproofing.

Despite Australia being known for its dry climate, water damage can affect projects on every level including terraces, decks, courtyards, balconies, sub-basements and car parks. Unfortunately water damage can be more than just an inconvenience. It can cause long-term structural problems in buildings, and lead to flooding and property damage – especially in occupied areas like sub-basements and car parks. Good drainage is essential if you want to ensure your property and structures are protected, but traditional paving and drainage systems often come with a number of limitations. Sub-basements and car parks can be particularly vulnerable to water damage and flooding, as they are often located well below ground-level. This is becoming an increasing problem as with a growing shortage of street level parking in urban areas, increasingly more car parks are being located underground. This leads to a need for more effective below grade, negative pressure waterproofing. The good news is that many waterproofing failures can be prevented. With adequate knowledge and understanding of the causes of membrane damage and the right systems in place it’s often not too difficult to alleviate the problem. Developments in technology have increased the options for those who are looking for a cost-effective way to get rapid surface drainage, while still allowing access to the waterproofing and services beneath – and for effective waterproofing of their subterranean basements and car parks.

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

What’s wrong with traditional paving and drainage systems? Traditional paving systems have a number of downsides over the more innovative modern paving systems out there. To start with, traditional paving systems can be susceptible to unwanted and unattractive efflorescence staining, which means their appearance will start to deteriorate over time. Beneath the surface there can be other problems with traditional paving systems. Installation of pavers on sand cement usually requires multiple trades, tools and materials. These are all potentially hazardous to the membrane and can lead to damage and leakage. Cracking and staining of pavers means regular repair is often needed, and this can also damage the integrity of the membrane. Ponding can cause damage Ponding is common on traditional paving systems, and this can cause damage to the mortar bed and affect overall paver stability. With traditional systems it can be very difficult to gain access to the membrane to repair when a fault is identified. Bedding pavers or tiles can prevent access altogether. This difficulty in accessing damaged membranes can mean minor issues are left untreated until they get out of control and lead to long-term, costly structural damage. Leakage coming down from the surface can cause ongoing issues in subterranean areas including car parks and basements, especially if their waterproofing isn’t up to standard. Older forms of waterproofing for basements and car parks are often insufficient to withstand water pressure, which can lead to them being vulnerable to damage. In many cases, waterproofing problems aren’t detected until too late with traditional paving methods that can conceal problems, especially if the area is constructed over a habitable space. In many cases a serious structural issue is the first indication of a problem and, by then, the damage is done and major repairs will be needed.

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Adjustable drainage can eliminate problems Fortunately, adjustable paving and drainage systems can provide many buildings with a way to eliminate a significant proportion of the waterproofing problems caused by traditional systems, and reduce the likelihood of structural damage going undetected. Adjustable paving supports consist of height adjustable pedestals that go underneath pavers, allowing the finished surface to be level. This creates a cavity that improves insulation and facilitates rapid surface-drainage while, at the same time, keeping services and waterproofing accessible. There are a number of different adjustable paving systems available to meet different requirements, from roof gardens and balconies to basements and car parks – and everything in between. Although they may vary slightly, these systems are all easy-to-install and provide a flexible, cost effective solution for any space. Unlike traditional paving systems, adjustable paving supports eliminate ponding and efflorescence. Surface water moves quickly to the 4mm wide open-grout joints to the cavity, minimising any back up of water during heavy rain events. This eliminates the need for expensive and often clumsy drainage grates. The adjustable paving supports can also reduce the load on slabs, improving their structural integrity while helping to reduce cracks and other damage. There is no mechanical fixing required when using adjustable paver supports. The supports simply sit on the membrane and are locked in

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place by the paver joint tabs. This allows easy access without the need for heavy tools that run the risk of damaging the waterproof membrane. Because the height and slope are adjustable, it’s easy to create a level finish even when the pavers are of inconsistent thickness. Adjustable paving support systems like VersiPave are commonly used in major civil construction projects and buildings to allow long-term access to the membrane. Under slab, planter box & vertical sub-surface drainage solutions Systems like VersiCell are commonly used for car parks and subbasements, as they are designed for sub surface drainage and waterproof membrane protection. Once they are installed with a waterproofing membrane there is no need for an additional layer of protection. The VersiCell modules are able to withstand heavy loads of up to 100 tonnes per sqm, including those imposed by mechanical equipment like bobcats and wheelbarrows. VersiCell is also used extensively in major civil construction projects as a drainage solution, most recently as a rising ground water management tool under multi-story building slabs. Geofabric is installed over the cut profile, followed by the VersiCell and waterproof membrane. This enables builders to eliminate the need to excavate and dispose of huge amounts of cut spoil. The cell will discharge water at a rate of 16.5 litres per sqm each second, which outperforms traditional drainage methods of crushed aggregate by approximately tenfold. Ground water is then collected in pits and pumped back to the surface as either irrigation or storm water. VersiDrain 8 mesh is a high strength dimpled HDPE drain sheet that is ideal for managing negative side water. This solution was used on the Chatswood to Epping rail link where a 25-50 mm layer of ‘shotcrete’ was made, followed by a liquid-applied waterproofing membrane. Exactly 100mm of shotcrete was then applied. Don’t let long-term water damage affect the structural integrity of your buildings. By switching to adjustable paving supports and high-flow drainage cell, you can enjoy a system that’s cost effective, easy to repair and maintain, drains more effectively. It will also soundproof and reduce transmission of radiant heat.

Ken Hitchcock is director of KHD Landscape Engineering Solutions (KHD). KHD offers a wide range of landscape engineering and natural stone products (www.khdlandscapesolutions.com.au/stone-products) for domestic, commercial and local government projects. Having been in business for over 15 years, KHD are well known in the industry for their high-quality products, and ability to work with other industry professionals to achieve the best possible project and client outcomes.

For more information: Phone: 0419 579 437 Website: www.waterproof.org.au Contact us for our full range of Waterproofing, Moisture Barrier and Concrete Protection products.

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M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5 MBA NSW April 2015.indd 1 21/04/2015 3:49:14 PM

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PRIMA PLANK The Ideal Wood Substitute Applications: Wall Cladding, Fascia Board, Gable End Cladding, Fencing, Gate, Screening, Ceiling, Skirting & Decking. PRIMA Plank is an autoclaved cellulose fibre reinforced cement siding board manufactured by Hume Cemboard Industries Sdn Bhd (HCI) an ISO 9001:2008 & ISO 14001:2004 accredited company. Manufactured from Portland cement, cellulose fibre, finely ground sand and water, PRIMA Plank has become extremely popular when a relatively maintenance free timber planking appearance is desired.

PRIMA Plank has superior dimensional tolerance and durability, it will neither warp nor become twisted when exposed to weather. PRIMA Plank meets the durability and serviceability life of minimum 50 years. Available in “Smooth Surface” (for traditional timber look), and “Woodgrain Texture” (for enhanced timber profiling), PRIMA Plank is becoming popular among house owners and specifiers when it comes to the refreshing “Natural Timber Look”. For more information contact: Phone: 03 7625 3880 Fax: 03 7625 3990 Email: exportHCI@humecemboard.com.my Website: www.primafibrecement.com

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CREATE RAISED FLOORS ON BALCONIES, PODIUMS AND GREEN ROOF TOPS Designed for creating raised floors in external applications, such as balconies, terraces and green roofs, Buzon’s Award Winning Pedestal system can be used with any type of concrete or stone paver, timber decking of all types and metal or fibreglass grid systems. A key benefit of this innovation is the patented slope correction device. This gives up to five percent fall compensation achieving a perfectly level floor finish, simultaneously allowing for positive water runoff at structural slab level.

At roof level, this load is evenly spread by the wide base area of each unit, making them ideal for installation on any waterproofing membrane without causing damage, they can even be used directly over insulation material.

For even more design flexibility, the system offers height adjustment from 17mm to 1070mm, millimetre by millimetre if required. This allows for unsightly services to be concealed under the floor while still offering access for maintenance of the waterproofing membrane and drainage systems.

The Buzon Pedestal System is also simple to install. Desired height is achieved by thread adjustment, which is lockable when reached and a range of interchangeable spacer tabs of 2mm, 3mm, 4.5mm, 6mm, 8mm and 10mm, allow for precise gaps between pavers and provide positive drainage without any concern of ponding or flooding.

The pedestals are extremely strong as they are precision-engineered from high strength, UV resistant, recycled polypropylene and capable of supporting loads of more than 1000kg each.

In addition the pedestal also improves thermal insulation and reduces sounds transmission. In commercial urban environments where space is at an ever-higher premium, a building’s roof level is potentially a rich source of usable space. Buzon say their Pedestal System can be used to maximise a roof’s potential, both hiding all manner of services and protecting roof substrates from the elements, maximising integrity and longevity. Buzon’s Pedestal System is available in NSW/ ACT through Ausdrain.

Using the Buzon Pedestal replaces the use of sand and cement when laying pavers, therefore eliminating efflorescence and algae and reducing weight-bearing loads on the building structure.

For more information contact: Phone: (02) 9929 7650 Fax: (02) 9929 7655 Email: enquiries@ausdrain.com Website: www.ausdrain.com

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Create raised timber and paved floors on balconies, roof tops and ground level outdoor areas.

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Exclusive stockist of Buzon products in NSW/ACT

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Ausdrain

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M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

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Pump masonry grout, mortar, pea gravel, shotcrete and more to the exact point needed, easily and efficiently, with your own PumpMaster PG-35. Compact and powerful, this 35 HP work-saver fits on the job site and empties a ready-mix truck in an hour, reducing labour and equipment rental costs as it increases efficiency and profitability.

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M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

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Our tanks use marine grade stainless steel, are Australian made and are also backed by a 15 year warranty. If you would like your system to have gas boosting Endless Solar provides Bosch instantaneous boosters as a back up for the solar system.

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www.endless-solar.com.au M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

directory VEHICLE ACCESSORIES

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WHAT IS YOUR LIFE WORTH? For over 18 years Roof Extenda Pty Ltd has been known for their second to none superior products! New Product:

ULTRA-TOUGH FINISH FOR HEALTHCARE ENVIRONMENTS Dulux Professional SteriGuard Ultra is ideal for architects and specifiers who are looking for an interior finish to meet the rigorous demands of healthcare projects.

ROOF EXTENDA ‘SAFETY ANCHOR’

SteriGuard Ultra is a two-pack product, requiring a mix between SteriGuard Ultra Part A and SteriGuard Ultra Part B (hardener).

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Our fixed single point fall-arrest safety anchor, designed for use on timber roof trusses/ rafters, has been tested for static and dynamic load capacity in accordance with the new AS/NZS 5532:2013 standards

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“The low odour, low VOC formula ensures facilities can return to service quickly with less disruption to patients.” In addition to meeting the requirements for durability and chemical resistance, Dulux Professional SteriGuard Ultra also has a low-sheen, giving architects and specifiers the ability to achieve a softer and less clinical look in medical and healthcare environments.

When mixed, the two-part polyurethane uses Bayhydrol Water Based Technology to produce an ultra-tough, chemical resistant coating, designed to meet the needs of healthcare environments.

Dulux SteriGuard Ultra is available in white or clear colours. It is tintable to pastel colours from a white base while clear is suitable for use over the top of brighter colour options.

This durable, quality interior finish is ideal for clinical environments such as hospitals, aged care facilities, veterinary rooms and dental practices.

SteriGuard Ultra joins other products in the SteriGuard range, including low sheen and water based enamel, which are key products for the industry.

Dulux Trade senior brand manager Anthony Voyage reveals Dulux Professional SteriGuard Ultra is designed to withstand the ongoing, high-intensity clinical cleaning cycles found in these environments.

SteriGuard Durable Acrylic Low Sheen and the Water Based Enamels meet the Green Building Council Australia guidelines for low volatile organic compound content.

“The formula of Dulux Professional SteriGuard ensures it is chemical and scrub resistant, incorporating Bio-Pruf Technology to protect against the growth of mould and bacteria when used in conjunction with facility cleaning programs,” Anthony said.

They can be purchased from Dulux Trade Centres or through a Dulux representative near you. For more information: Phone: 13 23 77 Website: http://dulux.com.au/steriguard

M A S T E R B U I L D E R S A S S O C I AT I O N O F N S W A P R I L / M AY 2 0 1 5

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