SA Builder Master Builders South Australia by arkmedia4217

APRIL â&#x20AC;&#x201C; MAY 2017

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M A S T E R

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STRATEGIC INFRASTRUCTURE PROCUREMENT

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BUILDING CODE 2016 AMENDMENTS PASS THE SENATE

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BUILDING ACTIVITY SET TO PEAK IN 2017

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ENTRIES OPEN FOR 2017 BUILDING EXCELLENCE AWARDS

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CONTENTS

27 STRATEGIC INFRASTRUCTURE PROCUREMENT

FOREWORDS 05

CHIEF EXECUTIVE OFFICER’S REPORT

PRESIDENT’S REPORT

REPORTS 08

ADVOCACY UPDATE

MASTER BUILDERS NEWS

UPDATES 14

ECONOMICS

INDUSTRIAL RELATIONS

Deputy President: Peter Salveson

DEVELOPMENT & TECHNICAL

Past President: John Kennett

INSURANCE

Treasurer: Mark Beatton

SKILLS INVESTMENT

Morry Canala, Neil Mossop, Nathan O’Neill, Fred Pascale,

SAFETY QUALITY ENVIRONMENT

FEATURES

President: Richard Bryant Vice Presidents: Mario Romaldi, Christopher Leopold

Councillors: Enzo Zito, Jock Merrigan, Nick Abley, Patrick Innes, Anthony Gow, Des Pawelski Master Builders South Australia: PO Box 10014 Gouger St. 47 South Terrace, Adelaide, South Australia Phone: (08) 8211 7466

PRINCES TERRACES ADELAIDE

Fax: (08) 8231 5240

UNIVERSITY SA: HEALTH INNOVATION BUILDING

Executive Editor: Russell Emmerson

Email: buildsa@mbasa.com.au

MEMBERSHIP 42

MASTER BUILDERS SA CORPORATE GOLF DAY

APPRENTICE OF THE MONTH AWARDS

Published by: Crowther Blayne Media Specialists

MEMBERSHIP AND RETURN TO WORK: YOUR NEW FACES

Phone: 1800 222 757

2017 BUILDING EXCELLENCE AWARDS

Web: www.crowtherblayne.com.au

GENERAL FEATURES 46

STRATEGIC INFRASTRUCTURE PROCUREMENT

EOFY STUFF YOU SHOULD BE THINKING ABOUT

STAIRWAY SAFETY

Email: publications@crowtherblayne.com.au Managing Editor: Trish Riley Sales: Rose Delosreyes and Paul Baird Design Team: Andrew Crabb, Judith Terrill, Michelle Triana Production Manager: Lynda Keys Advertising Coordinator: Yvonne Okseniuk

SA BUILDER APRIL – M AY 2017

CEO’S REPORT

IAN MARKOS

Chief Executive Officer, Master Builders SA

Government reforms deﬁnitely a move in the right direction T

he construction union turned up on the steps of Parliament House last month after calling on its members to end deaths on worksites.

But two days prior, after starting its attack on Senate members backing sensible improvements to the Building Code – including a personal attack on Senator Nick Xenophon that leaves him contemplating legal action – the protest became less about workplace deaths and more about union jobs. This emphasizes that the union is all too open to treating safety as a pawn for industrial politics. The CFMEU’s concern about workplace deaths was focused on the need to expand the rights of onsite health and safety representatives under section 68 of the Work Health and Safety Act. Yet when the State’s safety regulator, SafeWork SA, reviewed these laws in November, the union didn’t take the time to explain what changes were needed, or why. Its rival, the Australian Workers Union, thought it important enough to make a submission that claimed that the laws were “restrictive” and do “not provide for efficient and practical outcomes”. There was no further detail, but it was more effort than the CFMEU took for what it thought was such an important issue. Health and safety representatives connect all parties on busy construction sites with many risks. The South Australian laws allow them to seek help from people on the worksite, those involved in managing the business or an approved consultant. In contrast, the national template allows anyone to be called upon. In other states, this expanded power has been abused by using it as a back door for union officials, whose credentials to enter worksites, have been revoked. The additional reach for health and safety representatives isn’t a concern if safety is the sole issue and the laws are treated with respect. Yet CFMEU officials have promised a series of rolling stoppages to protest changes to building laws – in clear breaches of industrial laws – and the State branch has been found to have promised “Armageddon” in response to a company implementing a legally-binding Court order.

SA BUILDER APRIL – M AY 2017

Courts have repeatedly noted the union’s refusal to follow the law. In South Australia alone, this attitude has costs union members an estimated $2 million in fines and legal costs. For those counting, that’s equivalent to the annual fees paid by more than 2600 members. If safety really were the most important value at the heart of the union, it would stand by Master Builders SA’s support of SafeWork SA. SafeWork SA representatives wield power to shut down sites, but that power is not based on a popularity contest or through worksite politicking. Inspectors receive focused training in hazard management, inspection procedures, and investigative techniques, applying them in the specialised field that is the building and construction industry. And, with reforms championed by Deputy Premier John Rau, SafeWork SA now focuses on proactively helping businesses improve their performance without fear of repercussions. SafeWork SA is the key to protecting workers and worksites, and Master Builders SA supports the agency’s independence. In the days before its Parliament House protest, this was less of an issue; instead, reducing the transition period for Building Code 2016 from two years to nine months was the most important issue to protest about. This change will underwrite the building jobs South Australia needs. They will create a level playing field for all players when it comes to bidding for Commonwealth projects. They will better protect smaller businesses from union threats and intimidation. And they will protect taxpayers by prohibiting union claims that effectively boost the cost of schools, hospitals and roads by up to 30 per cent. More importantly, these changes will provide better protection for workers and businesses that reject the union’s ongoing disregard for the law. Our industry can again focus on building safely, working closely with the safety experts at SafeWork SA to get real outcomes. Every person in the industry must take safety seriously. It is too important for industrial games. South Australia needs more than that, and deserves better than that.

PRESIDENT’S REPORT

RICHARD BRYANT

President, Master Builders SA

Members urged to be the change they wish to see T

he playground opposite Master Builders House attracts kids of all ages. A climbing frame nearly two storeys tall attracts the most attention, as five year-olds and fifteen year-old teenagers clamber the ropes to the top to explore.

Before the State election rolls around – most would say the campaign has already started – the State Government is planning another red tape reduction day. Master Builders SA welcomes the opportunity to improve the business environment by reducing the drains on industry’s time.

If a builder took the same approach to inspect the fittings of those same ropes, they would first need to undertake a thorough risk assessment, and likely invest in edge protection. Then again, they’re not five years old.

But there is a challenge here for all members: exactly what is the red tape holding you back?

This could be an example of where a business is likely to suffer from excessive red tape. There are many, many more. Master Builders SA’s Housing Committee is working constructively with SafeWork SA to cut through some of the confusion around safety, to establish clear guidelines that help businesses meet the law, while also reflecting what actually happens onsite. Getting that balance right is essential for all members and their employees – provided, of course, that the focus remains on the safety of everyone on site. The broader balance between regulations and business practices needs a similar spotlight. The State Government’s recent red tape review was light on cutting unneeded regulation in the building and construction industry, and this is something we need to address. We need to identify those regulations that force business owners to sit at a desk when they could be on site building their business and employing more staff. This goes beyond the additional 15 minutes we’re chained to a desk for meaningless paperwork. It stretches to the time not spent with employees, with clients, planning for the future, and innovating for a stronger future. In other words, it’s not just important for business owners. It’s also important for the State. And there is an opportunity fast approaching to cut the red tape that is holding us back.

The answer can’t be “safety laws”. Our safety laws focus on protecting against risk in diverse environments, and so are understandably complex and extensive. But is there a particular regulation that demands performance – and is an utter waste of your time? These are the laws that all parties – Government, industry, and community – would gladly and promptly wind back or strike off. Master Builders SA is challenging all members to identify those regulations that don’t make sense, are outdated and waste time. The regulations that should be targeted for modernisation or culling. By the end of April, email policy@mbasa.com.au with the regulations that you want off the books, with a brief explanation as to the impact it is having on you and your business, and what – if anything – should be the alternative. These responses will be collated and provided to the State Government ahead of their call for the next red tape reduction day. Master Builders SA has the right connections and capabilities to make a difference to your business, but we need to know the changes you need made. Take the time, identify the demands, and then let us help make your business simpler. Our message for the State Government is clear: we need more activity, and less red tape. They are listening to Master Builders SA as your voice – let us make a difference while the opportunity is present.

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ADVOCACY UPDATES

WILHELM HARNISCH

Chief Executive Officer, Master Builders Australia

Prime Minister’s policy focus is a positive for the building industry

Opposition Leader’s focus on key policy challenges welcomed

“The Prime Minister’s focus on getting the policy settings right for economic stability and growth, are fundamental to underpinning and boosting confidence in the building, and construction industry,” Chief Executive Officer Wilhelm Harnisch said.

“The opposition leader’s recognition of their fundamental importance is broadly in line with Master Builders Strong Building, Strong Economy policy platform,” Chief Executive Officer Wilhelm Harnisch said.

he Prime Minister’s focus on delivering policies for a strong economy to attract investment, create jobs and boost living standards for all Australians are fundamental outcomes in what is set to be an increasingly uncertain global environment, Master Builders Australia says.

“Cutting the company tax rate to 25 per cent is a key priority of Master Builders Strong Building, Strong Economy policy agenda. More than 340,000 small family businesses in our industry will benefit from the Government’s proposed first step of cutting company tax for businesses with an annual turnover of $10 million or less. “But tax cuts should be applied more broadly and sooner, and in order to achieve this it is imperative to accelerate Budget repair, and for the Crossbench Senators to play a positive role. “Master Builders also strongly backs the Prime Minister on the need to build more new dwellings to ensure home ownership remains within the reach of everyday Australians. This must include affordable and appropriate housing options in the rental sector. “The Prime Minister’s holistic approach of tackling transport, urban infrastructure and the complexity of approvals process brings context to the solutions that are required. “Removing the structural impediments to building more homes, such as inefficient planning and approvals is fundamental. This can be achieved by the Federal Government showing leadership in working cooperatively with state and local government, and encouraging efficiency and reform measures to close the deposit gap for first homebuyers. “Investment in quality infrastructure is crucial to securing our standard of living in the future. More infrastructure investment will improve our economic and social wellbeing. “Targeted infrastructure keeps us out of traffic jams, ensures we are better connected and allows us to be healthier, as well as raising education levels and making our cities more productive. It also helps create a strong building industry and a strong economy, creating job and training opportunities for more Australians.

lans by the opposition leader Bill Shorten to focus on policies to underpin a strong economy, including home ownership, better vocational training and jobs for our young people and investment in infrastructure are vital issues for the building and construction industry, Master Builders Australia says.

“Master Builders welcomes the focus on trade training for Australian young people that leads to rewarding careers. “Master Builders has never considered trade apprenticeships to be inferior to a university degree and, with the current completion rate at around 50 per cent, is supportive of initiatives to support a greater number of young people to complete their apprenticeships. Master Builders commits to participating in the opposition’s proposed National Skills Summit. “Keeping home ownership within reach of everyday Australians through more affordable housing options, including affordable and social housing, must be a priority for policy makers. “First home buyers should not take second place in securing affordable home ownership, but neither should investors, including those who negatively gear, become the scape goats or be punished as part of finding a workable solution. “Master Builders has a five step plan for more affordable housing which is based on encouraging a cooperative approach by all levels of government to remove the structural impediments to increasing the housing supply and addressing the deposit gap for first home buyers. “An industrial regulator with appropriately strong powers such the ABCC is vital to underpinning increased productivity, jobs and training in the building and construction industry and Master Builders calls on the opposition leader to recognise a proper role for the ABCC in restoring the rule of law in preparing his industrial relations policy for the next Federal election,” he said.

“Master Builders has also called on the Government to focus on additional productivity reform measures including a renewed focus on the workplace relations framework.”

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ADVOCACY UPDATES

RUSSELL EMMERSON

Director, Policy and Communications

Codes, payments and elections – an early start to 2018

he next State election is less than one year away but when you see a Premier shirtfront a Federal Minister after announcing a $550 million package to restore confidence in the State’s electricity supply, you can fairly safely say the campaign has already begun. A campaign muddies issues. It creates conflicts. It distracts from important issues. But it also provides an excellent opportunity to raise the profile of the building and construction industry and to highlight its needs. And Master Builders SA has already begun its sprint to the finish. Building Code – act now The enactment of Building Code 2016 has hit headlines, sparking union protests and Senate hearings. The biggest change is the bringing forward of the start date to 1 September 2017. Don’t dismiss the warnings – you need to get your house in order now to keep your pipeline of work open from that date. To this end, Master Builders SA has extended its in-house industrial relations capacity to meet your needs. Master Builders SA also hosted the head of Building Code, the Australian Building and Construction Commission’s Cathy Cato, at a recent memberonly event. Her message was clear: this is an extensive package of reforms that the ABCC is evolving to meet. The first point of focus is to ensure you have compliant enterprise agreements. The next will be to look at each business’s Work Health and Safety Management Plan. There was also clear warning that audits are already underway, and are likely to be stepped up. Master Builders SA has a good relationship with ABCC, and we will continue to work together to inform industry. Contacting our IR team today can make the difference to your business prospects in coming years. Security of Payment Master Builders SA met with John Murray AM, the man tasked with developing a national approach to Security of Payment laws, last month. At the heart of the discussion was a simple question: how do you make the laws work to improve payment times? South Australia’s laws are similar to those in Queensland, New South Wales and Victoria, but it is clear our laws are not being embraced as an ordinary part of commerce. Based on work undertaken by our Commercial Contractors, Subcontractors and Contracts Committees, Master Builders SA has promoted the idea of introducing a distinction between simple and complex claims – as operates in Queensland – to allow prompt resolution of simple disputes and appropriate attention to more complex issues. Mr Murray paid close attention to Master Builders SA’s proposal to centralize the role of Authorised Nominating Authorities – the body that distributes adjudications – with bodies similar to the South Australian Civil and Administrative Tribunal (SACAT). These bodies have an established case management system, are focused on low-cost solutions including adjudication, and provide a ready avenue to resolve disputes arising from adjudications.

The concept of the use of trusts to protect payments remains high on the agenda, but there remain serious questions about how these can best be managed to minimise costs and avoid introducing delays in payment. Master Builders SA will continue to work with members to develop a whole-of-industry response that gets the best results for all members. A new role for the Industry Advocate Industry Advocate Ian Nightingale met with Master Builders SA in March where he called for his role to be enshrined in legislation. The proposed legislation would allow his position to enforce industry participation levels with the backing of financial penalties up to $50,000. Mr Nightingale also outlined a push to create design standards that captured South Australian content. Tenders would be designed to contain a certain level of local content, traced back to an assessment of individual items, according to the proposal. Master Builders SA has supported the need for local content but raised concerns that this new measure might introduce a new administrative demand on all contracting parties to regularly report on the meeting of such standards, right down to the choice of a chair or material. Industry needs a balance between support for local content and the introduction of additional administrative demands that are likely flow along the contracting chain. We continue to work with the Industry Advocate to minimise additional imposts on our industry. Election focus and media opportunities This election will be viewed through a single focus: what can create jobs. Master Builders SA is calling for further support for industry, investment in growing the next generation of Advanced Construction, and a renewed focus on housing affordability to support a growing population. Master Builders SA is therefore calling for members interested in taking part in coming media opportunities. If you believe your business exemplifies South Australia’s building and construction industry, please contact policy@mbasa.com.au by 30 April.

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NEWS

WILHELM HARNISCH

Chief Executive Officer, Master Builders Australia

Builders welcome improvements to ABCC

he community are the winners from the new laws to improve the effectiveness of the Australian Building and Construction Commission (ABCC) which passed the passed the Senate on 15th February, Master Builders Australia says. “The lawlessness, intimidation and industrial thuggery that happens on building sites isn't just an industry problem – it is everyone's problem – because taxpayers foot the bill for the delays, blowouts and days lost to strikes, causing construction costs to be about 30 per cent higher than they should be,” Chief Executive Officer Wilhelm Harnisch said. “The new laws reduce the current Code transition period from two years to nine months and means the community will gain from more schools, hospitals and roads sooner, and small building businesses and tradies will be protected from building union bullies. “Master Builders commends that Senator Hinch has listened to his constituents, recognising that the transition had caused unintended problems for builders, and that he had the courage to return to Parliament this year seeking to make things right. Senator Hinch, along with Senators Xenophon, Kakoschke-Moore, Griff, Hanson, Roberts, Burston, Leyonhjelm and Bernardi, are to be applauded for having seen through the building union campaign of lies and untruths. “These Senators, along with Minister Cash and the Turnbull Government, have taken a stand. They have voted yes to the rule of law, and no to union bullying on building sites. They have voted yes to

supporting small business sub-contractors, and no to intimidation and thuggery. They have voted yes to ensuring taxpayers get value for money, and no to delays and cost blow-outs. “After three Royal Commissions, dozens of reviews and inquiries and countless court decisions, it is clear that the construction industry has unique problems and that tougher industry-specific rules were needed, and this is exactly what the ABCC does. “The successful passage of laws to improve the implementation period of the Code for the Tendering and Performance of Building Work 2016 (the Code) is a very positive outcome for the building and construction industry. “The building and construction sector is the second largest part of our economy, and builders are looking forward to getting on with what they do best – building the things the community needs and creating jobs,” he said.

IAN MARKOS

Chief Executive Officer, Master Builders SA

A win for South Australians

utting the time available for the building industry to meet the requirements of the Building Code 2016 is a win for South Australians, Master Builders SA says. The reduction of the transition period from two years to seven months will increase pressure on industry to meet the new requirements – but will also provide a level playing field sooner, Chief Executive Officer Ian Markos said.

“This has contributed to construction costs being 30 per cent higher than they should be, draining funds straight from taxpayer pockets in the form of more expensive hospitals, schools and roads. South Australians deserve better, and this change is a step toward that better outcome.” Mr Markos said the initial two-year transition was based on good intentions, but hurt those businesses that tried to do the right thing.

“This is good for industry and the community as it will cut through union pressure to sign non-compliant agreements,” he said.

“Senator Derryn Hinch’s ability to review his decision with a better understanding of the impact, is to be applauded.

"Most companies held out for more than two years against massive union pressure to sign non-compliant Enterprise Agreements so that if the ABCC came back they could do Commonwealth-funded work, and many smaller companies have suffered from being locked out of work because they refused to bow to that pressure.

“The current proposal is a sensible approach that rewards businesses that value integrity in the industry. We urge the crossbench to support the proposal next week, including Senators Hanson, Leyonhjelm, Roberts, Xenophon and Bernardi, all of whom supported the ABCC in 2016. This will allow the country to return its focus to value for money for taxpayers and respect for the rule of law.”

SA BUILDER APRIL – M AY 2017

NEWS

IAN MARKOS

Chief Executive Officer, Master Builders SA

Opportunity for jobs exists right now

outh Australia’s building industry is meeting its long-term average activity rates but there is currently a valuable opportunity to boost the outlook of the sector and its jobs, Master Builders SA says. Data released by the Australian Bureau of Statistics shows 11,320 approvals have been made over the 12 months to December 2016 – four per cent higher than the previous 12 months, and 1 per cent higher than the 10-year average of 11,214 dwellings approved. Chief Executive Officer Ian Markos said meeting long-term averages was positive, but industry optimism was cautious. “We are heading into a period where we will see a Federal and State Budget, and then a State election. Decisions taken during this time will trigger key changes for the more than 55,000 people directly employed by South Australia’s building and construction industry and the tens of thousands more reliant upon its success”, he said. “If the State Government is interested in protecting those jobs and building on them for the future, it needs to listen to the needs of the businesses that create those jobs – and now is the ideal time for the right changes. “Creating an advanced construction sector to retain manufacturing skills is a key area already raised by Master Builders SA, and would form the basis of future jobs if the State Government and Opposition and other parties are open to good policy. “Despite the headline figures of today’s data, there are mixed views throughout industry. Boutique builders are optimistic and are experiencing solid inquiries in a competitive field. Larger builders have expressed some surprise at the data – it’s clear that they are

seeing reasonable results, but they feel that things are slowing. From a commercial perspective, things remain volatile, and our suppliers are reporting mixed results. “Again – what changes can we make now for one of South Australia’s biggest and most-enduring industries? If political parties aren’t listening to solid policy recommendations representing those that will create the next wave of jobs, then we have some very serious concerns for the next four years,” he said.

IAN MARKOS

Chief Executive Officer, Master Builders SA

Union focus on other sector wages shows that games are more important than outcomes

he CFMEU’s promise to create new battlegrounds over hospitality and retail wages shows it values political games more than the needs of the sector it purports to represent, Master Builders SA says.

“Rolling stoppages will hurt construction workers and contractors – for an issue that has nothing to do with the industry, nothing to do with the building and construction sector, and nothing to do with safety,” he said.

The construction union has vowed to lead a ‘Work Choices’ stylecampaign against the Federal Government over its support of the independent umpire’s decision to cut penalty rates in the hospitality and retail sectors.

“It’s no wonder that investment confidence is flagging when the union tries to use an issue outside the industry to cause havoc on construction sites.

Chief Executive Officer Ian Markos said the union’s decision lashed out at the wrong people.

SA BUILDER APRIL – M AY 2017

“At a time when South Australia is struggling with one of the country’s highest unemployment rates, it is time to reject the political games. We need to focus on building confidence to underpin jobs.”

ECONOMICS

MATTHEW POLLOCK

National Housing Manager, Master Builders Australia

Bouncing from boom to boom; housing slips but transport infrastructure set to take off

aster Builders welcomes the more positive GDP growth presented in the latest ABS national accounts statistics released earlier in the month, which show GDP growth of 1.1 per cent during the December quarter 2016.

year, and contribute 0.3 per cent to GDP growth. Over the four years to 2019/20 the combined value of transport infrastructure investment is projected to reach upwards of $132 billion, supported by a series of major road and rail projects.

Dwelling investment made a turnaround, growing by 1.2 per cent during the quarter and largely offsetting the fall recorded during the September quarter 2016. But weak building approvals data and volatility in the investment statistics are strong indicators that we are very close to the peak of the housing construction cycle, and support Master Builder’s projections for a softer period for residential building activity likely in the second half of 2017.

In South Australia, transport infrastructure investment is expected to grow by 66.9 per cent this financial year, with the value of work done expected to exceed $1.7 billion. Total building and construction work is expected to contribute over $10.3 billion to the economy and make up a growing share of economic activity and jobs in South Australia over the next two years.

Non-dwelling investment continues to transition from a post mining boom phase, but the recent data shows the non-residential sector finished the year strongly, with investment growing by 5.7 per cent, to 23.7 billion. The completion of around $50 billion of major LNG projects slated for the next six months is likely to continue to drag on activity in the short term, but more sustained growth is expected to return thereafter. Looking forward, dwelling investment is projected to be flat, with a small contraction of 0.3 per cent in 2016/17. This takes a major driver of the past few years out of the economic growth equation. But a number of major transport infrastructure projects are slated to pick up the growth baton. We are bouncing from boom to boom, with the value of work done on transport infrastructure projects projected to spike in 2017/18 to over $33.6 billion, up by 25 per cent on the previous

But despite a healthy pipeline of projects, private investment remains largely absent and is still weighing negatively on economic growth, in South Australia and in other States/Territories. Urgent Budget reform is needed to attract private investment back into the economy. Master Builders supports the governments’ proposed company tax cuts to restore competitiveness in Australia’s corporate tax system and to attract a greater level of private investment – from domestic and international businesses. Master Builders supports the government’s agenda to promote productivity enhancing reforms as noted in the Harper Review into competition in Australia, including recommendations to improve efficiency in the housing market by removing regulatory impediments to the supply of new homes.

Contribution to Australia’s GDP Growth Quarterly % change 1.4% 1.0% 0.6% 0.2% -0.2% -0.6%

Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dwelling Investment

Non-dwelling investment

Other sectors

GDP growth

Source: ABS 5206.0

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ECONOMICS

MATTHEW POLLOCK

National Housing Manager, Master Builders Australia

Building activity set to peak in 2017

uilding activity, particularly for home building businesses, is set for a strong start in 2017, according to the latest national survey of builders.

“Master Builders National Survey of Building and Construction shows that the positive outlook at the national level reflects the strong pipeline of work in the housing sector, reflecting the record building approvals and housing loans approved in 2016, and over 70 per cent of survey respondents indicating that their books are full for at least the next six months,” National Housing Manager Matthew Pollock said. “Business conditions improved during the December quarter 2016, with positive sentiment shared across the residential building and non-residential construction sectors. Sales and profitability have edged up and employment intentions are the highest since 2014. “Business confidence is also at its highest level in over two years and reflects a growing sense of optimism in the non-residential construction sector, particularly since the return of the ABCC. But commercial builders are looking for business-friendly policies from Government such as a company tax cut and a credible structural Budget repair strategy to boost prospects in the sector. “Residential builders are also looking to the Government for leadership in promoting a collaborative approach from all levels of government to take concrete action to remove the structural impediments that stand in the way building more new homes, and to ensure home ownership is within reach of all Australians.

“These results stand in contrast to some of the gloomier outlooks currently circulating for the industry, particularly housing. While some commentators are saying the housing market is about to hit a wall, sentiment from Master Builders members shows that activity in the home building sector will be strong at least for the first six months. There are more new dwellings being built right now than ever before. “2017 should usher in the peak of the current housing cycle, with activity projected to peak at $66.7 billion. The wind down in activity, set to commence in the latter half of 2017, is likely to be a slow decline rather than a sharp fall because of low interest rates and a relatively strong demand remaining. “Meanwhile, sentiment in the non-residential sector came full circle in 2016. After reaching a low point of 46.3 in the June quarter 2016, the December quarter 2016 marks a return to positive sentiments (reaching 52.7 index points). “Business confidence is the highest it’s been in over two years, recording an index of 57.6 due to a turnaround in future expectations in the non-residential construction sector, where we are likely to see more positive growth prospects in some markets in 2017. “The positive outlook sentiment expressed in the December 2016 Survey must be supported by pro-business policies in the May Budget,” he said.

MATTHEW POLLOCK

National Housing Manager, Master Builders Australia

Housing finance supports greater stamp duty relief for first homebuyers

aster Builders welcomes the findings of the latest housing finance statistics, which shows total dwelling finance increased by 0.4 per cent in December 2016, supported by a 1.3 per cent increase in owner occupied loans, offsetting a fall in investor loans of one per cent, Master Builders Australia says. “Recent housing finance data released by the Australian Bureau of Statistics supports Master Builder’s expectation nationally for another year of strong positive growth in housing construction, driven by a record for apartment construction in NSW and Victoria particularly. However, prospects will likely be more varied across other housing markets, particularly in resources states,” National Housing Manager Matthew Pollock said. “The fall in investor loans is a reversal in an upward trend in investor loans that has extended since September 2016, and is early evidence that loan restrictions by the Australian Prudential Regulatory Authority 16

(APRA) and the major commercial banks are beginning to taper investor interest in the housing market. “First home buyer challenges continue with loans down by 7.1 per cent in month, and is down by two per cent over the year to December 2016. More needs to be done to improve first homebuyer’s access to the housing market, but a change to negative gearing is not one of the solutions. “There are no easy solutions, but in the short term, stamp duty relief for first home buyers for all types of housing, is the most obvious policy solution. Stamp duties can be equivalent to 10 to 20 per cent of the deposit required in most states/territories. “The housing data shows that the states that provide greater stamp duty relief for first home buyers also have a much greater share of first home buyers in the market,” he said.

SA BUILDER APRIL – M AY 2017

ECONOMICS

IAN MARKOS

Chief Executive Officer, Master Builders SA

Drop in much-needed South Australian investment

outh Australia’s commercial building sector needs a new series of projects to fill jobs likely to suffer from a 10 per cent fall in activity, Master Builders SA says. Data released by the Australian Bureau of Statistics shows new non-residential construction activity in the State has fallen more than 10 per cent to $1.2 billion for the year to December 2016. Of most concern is the 23.8 per cent fall in private investment in commercial construction, Chief Executive Officer Ian Markos said.

“This represents a lot of projects across the State and filters down to South Australia’s vital small business community, so the next challenge for Government and industry is to make sure that any red tape holding back that flow of activity is cleared away. Planning reforms are a good start to the next 30 years, but our members are still dealing with problems today that are adding costs to projects and impacting housing affordability. This is a key challenge – we need to get it right to underwrite the State’s future.”

“Investment in offices, warehouses and schools marks investment in the next generation of productive infrastructure, so to see this rapid fall is a concern for the jobs connected to that activity,” he said. “We need to identify the projects that will add value in the State and invest now to trigger more confidence from the private sector.” Residential construction activity provides good news for the State with recent improvements in building approvals now being reflected in activity on the ground. Residential construction is about 10 per cent higher than 10-year averages, with $762 million of activity in the December quarter alone,” Mr Markos said.

Pat is a chippy. Pat can nail blindfolded. Pat is a green belt in karate and hates man buns. , She s one of my best tradies. Learn how women are transforming the construction industry for the better — visit citb.org.au/women or call (08) 8172 9500

SA BUILDER APRIL – M AY 2017

ECONOMICS

MATTHEW POLLOCK

National Housing Manager, Master Builders Australia

Budget settings must strengthen confidence to support future building activity

he ABS September quarter building activity data confirms the continuing contribution of the building and construction industry in underpinning economic growth in Australia, despite the three major construction sectors – residential, commercial and engineering construction – being at very different stages in their construction cycles,” Master Builders Australia says. “The September data highlights the need for this year’s Federal Budget settings to strengthen confidence and set the Australian economy on a sustainable growth path,” National Housing Manager Mathew Pollock said.

“Residential activity is strong but falling slightly, recording a moderate contraction of 3.3 per cent in seasonally adjusted terms, and ending a run of five consecutive quarters of growth in the value of total residential building work. “Master Builders expects home owners and investors to spend a record $66.7 billion on new housing construction in 2016/17, before activity begins to moderate in 2017/18 to around $59 billion. “As expected, renovations continued to perform well in 2016, and Master Builders expects this to continue over the next 12 months with homeowners expected to spend over $7.7 billion in 2016/17, and to grow

by an average of 4.1 per cent over the next three years. “The approaching slowdown in the residential cycle is expected to be relatively moderate by historical standards, with a projected low point in 2018/19 of around $59 billion, being broadly equal to the value of residential work done in 2014/15 (the beginning of the current boom period). “The non-residential building sector continues to underperform, recording negative growth of 10.5 per cent during the September 2016 quarter. The latter supports Master Builder’s projection for a relatively softer year for non-residential building activity in 2016/17, with the total value of work done projected to fall by 10 per cent on the previous year. “Forward estimates provide a more positive outlook with non-residential building work expected to grow by around two per cent in 2017/18, supported by around $5 billion of new office construction and $6 billion in retail and wholesale construction. “The better results recorded in the non-residential building sector earlier in the year turned out to be a dead cat bounce. The next 12 months is likely to put up more mixed results due to rising global volatility and its potential impact on the Australian economy. But the worst for the non-residential sector is likely behind us, with growth expected to average 2.3 per cent per year over next three years,” he said.

MATTHEW POLLOCK

National Housing Manager, Master Builders Australia

Engineering construction stuck in post mining boom phase

he latest ABS construction activity data confirms the engineering construction sector is still stuck in the post mining construction phase, with a smaller number of major resources related projects nearing completion, Master Builders Australia says. “The value of engineering construction work fell by 4.7 per cent in the September 2016 quarter, to $20.1 billion, adding a fifth consecutive quarter of negative growth in the sector. Total construction work done in Australia fell by 5.1 per cent in September 2016, and has fallen for five consecutive quarters as the other building and construction sectors struggle to fill the void left by the fall-out in resources related activity,” National Housing Manager Mathew Pollock said. “The fall in resource related investment highlights the need for the Budget settings to support continued investment in infrastructure; and for the tax system and other reforms to encourage private sector investment into infrastructure projects. “Master Builders expects the deterioration in total engineering construction work to continue in 2016/17, dragged down by the completion of over $50 billion in LNG-related major project activity.

Preliminary forecasts from Master Builders show total resource related construction is projected to halve in 2016/17 to $22.3 billion, less than a third of the value of engineering construction work recorded during the peak in 2013/14 of $67.5 billion,” he said.

SA BUILDER APRIL – M AY 2017

INDUSTRIAL RELATIONS

IAN MARKOS

Chief Executive Officer, Master Builders SA

Industrial Relations: A vital business focus

aster Builders SA has brought its industrial relations service in-house to give members better value and service at a time when we expect members to be hardest-hit. The CFMEU has told the Senate that it will fight the introduction of Building Code 2016 with a sustained campaign of industrial action – regardless of whether that action is legal. And while members are likely to face the brunt of this attack, the ordinary challenges of business – managing difficult staff and trying to keep the best – continue. Building a better member-focused team in-house is vital, Chief Executive Officer Ian Markos said. “Industrial and workplace relations is a core need for member businesses, and a core service for Master Builders SA, so we have done the obvious – invested in it,” he said. “We have a smart team at the end of the phone for help when you need it. And we have experts ready for formal advice – but always recognising the need to provide value for money.”

“With a new Building Code demanding changes by September, every subcontractor and principal contractor needs to think about compliance today.” Former Liberal senior advisor Will Frogley has joined Master Builders SA to head up the revitalised industrial relations team. Mr Frogley worked with the Opposition to introduce key practical changes to the Work Health and Safety Act 2012 and has helped Parliament appreciate the impact that breaches of industrial relations laws have on business. “These laws can’t exist in isolation – they have an impact on businesses every day,” he said. “Our job here is to help members overcome problems and get on with business. It might be a quick phone call to answer a straightforward question; it might be drafting and negotiating an employment agreement; or even representing members at the Fair Work Commission. “Our job here is to solve problems quickly with minimal fuss.” Sign up now for our regular IR Update email by contacting: IR@mbasa.com.au

Your Industrial Relations team

With Industrial Relations expected to affect every business over the next two years, Master Builders SA has brought together a professional team to meet your needs.

William Frogley – Industrial Relations & Policy Manager Will has worked in print and broadcast media and most recently was employed as Manager to the Hon Rob Lucas MLC, Shadow Treasurer and Minister for Industrial Relations. Will played an important role working with industry to secure vital amendments to Work Health and Safety laws, including limiting the powers of health and safety representatives to call for assistance beyond the workplace in order to prevent union abuse of right of entry provisions. Will has a Master of Business Administration (Finance) and is an excellent acquisition for the Association and its members.

SA BUILDER APRIL – M AY 2017

Jessica Kamleh – Industrial Relations Officer Jessica Kamleh has been working in the field of Industrial Relations since graduating from Flinders University of South Australia with a Bachelor of Laws and Legal Practices (Honours), and Bachelor of Business (Human Resource Management) in 2014. Jessica previously worked with members of the National Electrical and Communications Association SA (NECA) to assist with the drafting of enterprise agreements, employment contracts and policies and procedures. She has represented members in unfair dismissal and underpayment claims, and also provided advice on employment management, award and legislative interpretation and contractual agreement and obligations.

Louise Sparks – Business Administration Officer Louise has worked in the legal industry for over 12 years as a qualified Paralegal. She graduated from the University of South Australia with a Bachelor of Business – Administrative Management, and has extensive experience in the legal industry focusing on conflict resolution and negotiation.

INDUSTRIAL RELATIONS

WILLIAM FROGLEY

Industrial Relations & Policy Manager

JESSICA KAMLEH

Industrial Relations Officer

Building Code 2016 amendments pass the Senate

he Building and Construction Industry (Improving Productivity) Amendment Bill 2017 passed the Senate on 15 February 2017. The Bill amends the expiry of the transition period for Building Code 2016, which commenced on 2 December 2016, extending its implementation from 28 November 2018 to 31 August 2017.

Do I need to obtain a letter of compliance if my employees are covered by the terms of a modern award? Yes. Even if you do not have an enterprise agreement, all contractors who are seeking to win contracts for Commonwealth-funded building work will require a Letter of Compliance.

You become subject to the Code (a “Code-covered entity”) from the first time you submit an expression of interest or tender for Commonwealthfunded building work. From this point, you and your related entities must comply with the Code on all new projects, including privatelyfunded projects. However, you are not required to ensure subcontractor compliance on private projects. Building Code 2013 continues to apply to building work tendered for prior to 2 December 2016.

What do I need to do to ensure my agreement is Code-compliant? This will depend on the current status of your enterprise agreement: • Enterprise agreements that have passed their nominal expiry date or will pass their nominal expiry before 31 August 2017: We recommend you act fast to get a new Code-compliant agreement in force before 31 August 2017. The Industrial Relations team at Master Builders SA can help review and draft your new enterprise agreement to ensure compliance. • Enterprise agreements still in force after 31 August 2017 and assessed as being compliant with Building Code 2014: Your agreement will most likely be compliant with the 2016 Code. Please contact our Industrial Relations team for a review. • Enterprise agreements still in force after 31 August 2017 and not Code-compliant: Contact the Industrial Relations team at Master Builders SA who are available to help you review your agreement and provide you with advice as to your best options moving forward. • Enterprise agreements entered into before 25 April 2014 that have not been varied: These agreements are exempt from having to be compliant with the 2016 Code.

What does the mean for you? If you are seeking to win contracts for Commonwealth-funded building work you must have a Code-compliant enterprise agreement by 31 August 2017. It is important to realise the exemption until 31 August 2017 is limited to submitting expressions of interest and tendering, meaning your agreement will need to comply with the Building Code 2016 before you can be awarded Commonwealth work. The timing of your current enterprise agreements have a bearing on your compliance with Building Code 2016: • Agreements made on or after 2 December 2016 must comply with the 2016 Code to submit an expression of interest tender or be awarded Commonwealth-funded work. • Agreements made before 2 December 2016 will no longer be deemed compliant with the 2016 Code until 28 November 2018. You can submit an expression of interest and tender for Commonwealth-funded work until 31 August 2017, but you will need a Code-compliant agreement to be awarded the work. However, if you have already submitted an expression of interest or tendered for relevant building work before 22 February 2017 you will remain eligible to be awarded that building work until 28 November 2018. How do I show I am Code-compliant? If you are Code-compliant the Australian Building and Construction Commission (ABCC) will issue you with a Letter of Compliance. This letter is required if you wish to undertake Commonwealth-funded building work. The Building Code 2016 Assessment Request/Letter of Compliance Form is available on our website.

ABCC enforcement: What you need to know The ABCC has responsibility for monitoring compliance with the Code. The ABCC’s monitoring role includes education, advice, site visits, site inspections and compliance audits. The content of enterprise agreements has dominated media coverage as they are the ABCC’s first focus given the need to prompt compliance. However, the Code contains many other things that are very important for your business. For example, if you don’t pay the correct wage or entitlements or comply with Security of Payment or Work Health and Safety laws – including Right of Entry laws – you could miss out on Commonwealth-funded contracts. You also need a drugs and alcohol plan.

SA BUILDER APRIL – M AY 2017

INDUSTRIAL RELATIONS A Workplace Relations Management Plan (WRMP) is required if the Commonwealth contribution to the project is at least $5 million and represents at least 50 per cent of the total project cost, or the Commonwealth contribution to the project is at least $10 million. A WRMP must detail how you will comply with the Code and deliver the project on time and on budget. There are also requirements related to freedom of association. For example, contractors must not refuse to employ an individual because of their union status. Reporting requirements Code covered entities must report to the ABCC: • actual or threatened industrial action within 24 hours of becoming aware; • a breach or suspected breach of the Code within two working days of becoming aware. Within 14 days, a follow up notification confirming steps taken to rectify the breach is required; • any disputed or delayed progress payments to the ABC Commissioner and the relevant funding entity as soon as practicable after payment is due; and • within 24 hours, report any direct or indirect request or demand by a union or other building association that the Code-covered entity engage in conduct that appears to be for the purposes of a secondary boycott.

For the most up-to-date insight into the impact of the building code on your contracting or subcontracting business, visit mbasa.com.au/industrial-relations/building-code-2016

Strong, capable women (like Pat) are traditionally underrepresented in the construction , industry, and it s time that changed.

Consequences of breaching the Code If you breach the Code the ABC Commissioner may recommend to the Minister that a sanction be imposed. This could see your business not permitted to tender for, or be awarded, Commonwealth-funded building work for up to one year. The ABCC has made it clear it will take an active approach to policing the Code, including a strong audit program to begin immediately. More information is available It is important to understand the situation is changing on a regular basis. The ABCC itself is first focusing on the most urgent matters – the need to process new employment agreements – before turning to longer-term matters including audit assistance. We recommend you visit mbasa.com.au/industrial-relations for useful resources. We have provided a quick guide to prohibited clauses in enterprise agreements and have useful links to a table of scenarios that might apply to your situation. The Building Code 2016 is a significant matter for our industry, but has been prepared with a view to helping industry. Our team is standing by to help you manage this process. Sign up to our Industrial Relations newsletter by contacting Louise Sparks on (08) 8122 4990 or IR@mbasa.com.au

Today, women represent only 11.3% of the Australian construction workforce — and only 5.5% in South Australia. These figures fall behind those of comparative industries, such as electricity, gas, water, waste and mining, in which up to 22% of the workforce is female. These figures are relics of another time, and of a long-disproven belief that women are incapable of excelling in these roles. This false belief has for too long denied women of the opportunity to even prove themselves in these roles, and has denied the industry of a vast, untapped well of talent. CITB are encouraging employers like you to challenge these outdated beliefs and create the stronger, more inclusive workforce of the future. When women (like Pat) can excel despite the additional challenges of overcoming this tradition of exclusion, there’s no telling what more they are capable of — if given the chance.

Learn how women are transforming the construction industry for the better — visit citb.org.au/women or call (08) 8172 9500

SA BUILDER APRIL – M AY 2017

INDUSTRIAL RELATIONS

IAN MARKOS

Chief Executive Officer, Master Builders SA

Only three SA CFMEU officials with power to enter building sites

he construction union’s application to have a senior official’s right of entry permit renewed has been rejected, leaving just three South Australian officials legally able to enter building sites.

Chief Executive Officer Ian Markos said the behaviour of CFMEU officials demonstrated why the Australian Building and Construction Commission and the new Building Code were so badly needed.

The Fair Work Commission has dismissed the CFMEU’s application to reinstate Mark Gava’s permit on the grounds Mr Gava was not a “fit and proper person”. Mr Gava was part of a group of officials whose “coercive” behavior at two Adelaide construction sites in 2013 resulted in the union being fined $456,000 in the Federal Court. Mr Gava was fined $3800.

“Earlier this month, it was revealed in Senate Estimates that the ABCC had 57 proceedings against the CFMEU before the courts, 23 relating to coercion. There were 110 CFMEU officials facing 1078 contraventions, and approximately $1.7 million in fines were issued by courts during 2015/16,” he said.

Senior Deputy President Matthew O’Callaghan, in handing down judgment, noted Mr Gava had undertaken “not to repeat those behaviours” but “advised that he cannot recall his specific behaviours” – leaving the Commission uncertain about his ability to meet his commitment. “Simply put, Mr Gava does not recall exactly what he did but has undertaken not to do it again,” Deputy President O’Callaghan said in his judgment. The Deputy President also criticised Mr Gava’s lack of contrition over the “serious and significant incident”, and for recently entering a site without a current entry permit. Mr Gava made a statutory declaration that he had not entered a site without a permit, but less than one month later swore another statutory declaration saying he had entered a site after his permit had expired.

Prohibited clauses in Enterprise Agreements What is the benchmark for applicable clauses in Enterprise Agreements? All industry participants involved in, or wanting to be involved in Commonwealth-funded building work must comply with the Code for the Tendering and Performance of Building Work 2016 (Building Code 2016), which replaces the Building Code 2013. Section 11 prohibits Code-covered entities from engaging in certain conduct or adopting an enterprise agreement containing prohibited clauses. What is prohibited? Enterprise agreements cannot include clauses that: • Impose (or purport to impose) limits on the ability to manage a business or improve productivity; • Discriminate against employees or subcontractors; or • Are inconsistent with freedom of association under section 13 of the Building Code 2016.

“These are national figures but it is clear how the CFMEU operates. Sadly, the union has a deeply entrenched culture of willful disregard for workplace relation laws and appear to see fines as simply a cost of doing business. “The rule of law must be restored on building sites. Union lawlessness and intimidation must be properly investigated and punished, otherwise South Australians will continue to suffer from thuggish behaviour on building sites, higher costs to taxpayers and missed economic opportunities. “At a time of high unemployment and sluggish economic growth, there is too much at stake not to get this right. It is imperative we focus on building the confidence required to support jobs growth.” According to the Fair Work Commmision, at the time of writing only Andrew Penny, Derek Stapleton and Gregory Warner hold valid Right of Entry permits in South Australia. All are currently valid until 22 June 2019.

Examples of prohibited content

Section 11 prohibits clauses that: • Prescribe the number of employees or subcontractors that may be engaged on a site; • Restrict the engagement of persons by the type of contractual engagement (e.g. casual); • Require consultation with, or approval of, a building association or union regarding the engagement of subcontractors, the number of employees engaged, or the type of employment offered; • Prescribe the terms and conditions on which subcontractors are engaged; • Limit (or have the effect of limiting) the right of an employer to make decisions about redundancy; • Prohibit the payment of a loaded rate of pay; • Provide for agreements to be monitored by persons other than the employer or employees; • Require association logos, mottos or indicia on company-supplied property or equipment; • Limit an employer’s ability to determine with its employees when and where work can be performed to meet operational requirements; or • Provide rights for a building association or union official to enter premises other than in compliance with Right of Entry provisions under the Fair Work Act 2009.

SA BUILDER APRIL – M AY 2017

INDUSTRIAL RELATIONS

WILLIAM FROGLEY

Industrial Relations & Policy Manager

Protected Action: Employees not protected from resulting consequences

Full Bench of the Fair Work Commission (FWC) has held that an employer’s decision to make redundancies in order to manage the loss and damage caused by employees taking protected industrial action was a legitimate business ground. The CFMEU made an application for a bargaining order to be made under section 229 of the Fair Work Act 2009 (Cth) (the Act) against Anglo Coal (Capcoal Management Pty Ltd) (the Employer), on the contention that the Employer was engaging in capricious or unfair conduct that undermined freedom of association or collective bargaining. The order sought by the CFMEU was to prevent the Employer from terminating the employment of any CFMEU member by reason of redundancy. The Employer and the CFMEU have been bargaining for a replacement enterprise agreement, which has involved members of the CFMEU taking sustained and ongoing industrial action. In November 2016 the Employer made a decision to vary their business operations by ‘parking’ a large piece of excavation equipment (the Shovel) permanently, resulting in 83 positions being made redundant. Deputy President Asbury accepted that the redundancies were related to the protected industrial action taken by employees, as the unplanned delay led to the decision to park up the shovel. However, the Deputy President found that this decision was taken for “legitimate and valid operational reasons including a significant cost saving to the Company in the order of approximately $40 million” and further went on to find:

“It is not unfair for an employer suffering loss and damage as a result of employees taking industrial action to decide, on legitimate business grounds, to restructure its business to manage or offset that loss and damage, and decide to make employees redundant in the process,” the Commission said in its judgement. The Full Bench agreed with the Deputy President’s finding, stating that the Employer’s business decision was: “A legitimate response to the commercial and operating circumstances which the [Employer] found itself in as a result of the protected industrial action. The [Employer], in adopting this option, in our view, was motivated by, and acted in accordance with, its legitimate business concerns.” Based on the above finding, the Full Bench was satisfied that the Employer’s conduct was not unfair or capricious in this circumstance and therefore dismissed the appeal, the Commission said in its judgement. The full decision can be accessed here: Construction, Forestry, Mining and Energy Union v Anglo Coal (Capcoal Management) Pty Ltd T/A Capcoal [2017] FWCFB 317 (16 January 2017) (Link for the decision): https://www.fwc.gov.au/ documents/decisionssigned/html/2017fwcfb317.htm

IAN MARKOS

Chief Executive Officer, Master Builders SA

South Australia now has the second-highest level of industrial disputes

he construction sector is suffering one of the highest rates of industrial disputes across the country, with the number of days lost nearly three times higher than five years ago – a worrying trend for South Australian jobs as unions protest today, Master Builders SA says. Data released by the Australian Bureau of Statistics shows the Australian building and construction sector lost 19.7 days per 1000 employees in the December 2016 quarter – compared to only 5.2 days recorded five years ago. The uptick cements the industry’s reputation as the worst performer across Australia. South Australia’s record fares little better, with 1.2 days lost per 1000 employees across all sectors – second only to Queensland. Chief Executive Officer, Ian Markos said militant unions needed to focus on securing future jobs, not creating havoc.

SA BUILDER APRIL – M AY 2017

“South Australia is creating headlines for all the wrong reasons: blackouts, high unemployment, protests and millions of dollars of fines for union thuggery,” he said. “We want people to invest in South Australia, to move here, to work here, to succeed here – but we are still battling an old-school mentality that seeks confrontation and disruption. “The creation of the Australian Building and Construction Commission has put industry on notice that illegal behaviour – regardless of whether it relates to employees, unions or employers – will not be tolerated, and we wholeheartedly support that stance. “The union today is protesting the return of the rule of law. It’s time to focus on South Australia.”

DEVELOPMENT & TECHNICAL

BRENDON CORBY

Manager, Development and Technical

Holden’s manufacturing lessons for building Holden’s use of advanced robotics and lean manufacturing provides insights that can benefit the building and construction industry in years to come. Almost 30 members of Master Builders SA visited Holden’s Elizabeth site to gauge valuable lessons ahead of the plant’s planned October closure. The value of small, coordinated teams was apparent. Assembly line teams were not locked into doing one task repeatedly, but worked as a close team empowered to improve its own work, its own safety outcomes and its place in the larger manufacturing process. Most importantly, the work was clearly understood as part of a whole: our tour was shown how overall tasks were broken for an analysis of tasks and functions, and then those elements translated to focus on delivering bestquality products on a consistent basis. The use of prefabrication, modularization and off-shore manufacturing within the building and construction industry is forecast to grow by 3 per cent annually until 2020. This will create significant employment challenges as prefabrication gains a larger share of the market, with off-site solutions delivering a greater proportion of builds.

The tour of Holden was an opportunity to share with members the level of skill within the State’s manufacturing industry and the value of investing in those skills for a stronger industry. Master Builders SA has proposed a 5x5x5 plan to develop a South Australian Advanced Construction Industry. The plan proposed the selection of five local projects over the next five years, with each to receive $5 million in seed funding from the State Government. If these projects can be developed to draw upon existing manufacturing skills while building high-end design and construction facilities within the State, we believe this can create a new industry and new employment, generating complex jobs that will generate a new wave of entrepreneurs and business owners – all within the South Australian Advanced Construction industry. The tour of Holden’s opened eyes to what has been achieved – and what is possible.

GEORGE KAMENCAK

Deputy Commissioner for Consumer Affairs, Liquor and Gambling

Who can sell or install solar panels

any homeowners are making choices to cut down their energy use and reduce their energy bills. As solar panels have increased in popularity, businesses have sought to tap into this growing market. Consumer and Business Services (CBS) are however, reminding suppliers that if you install solar panel systems or you sell systems that include installation, you must be licensed. The electrical work must always be performed by a registered electrician. If the installation includes structural building work (e.g. modifying/ reinforcing roof framing or integrating the solar panel system with a pre-existing structure) then you must hold a building work contractor’s licence and the work must be supervised by a registered building supervisor. If the installation does not include structural building work you can hold either: • an electrical contractors licence, or • a suitable building work contractor’s licence – such as a builders licence endorsed for ‘PV Solar Panel installation’, or a more general category of building work as long as the solar panel installation fits within your endorsed category. In 2016 a company was fined $46,575 after it failed to inform customers of their cooling off rights for unsolicited sales, failed to attend compulsory conciliation conferences with CBS, and contracted for electrical work while unlicensed in South Australia. This serves as a reminder to anyone who installs or sells solar panels, including installation, to comply with licensing and consumer law requirements. 24

By law, a business that contracts for the installation must provide warranties to cover: • the quality of materials and workmanship • compliance with plans, specifications and legal requirements • completing the work within a specified time or a reasonable time • meeting the end result that was requested. Claims against a statutory warranty can be made up to five years after the work is completed. You may however, be liable for defective building work under the Development Act 1993 for 10 years. Consumer guarantees under the Australian Consumer Law also apply. If the panels are not of acceptable quality, not fit for purpose, do not match the description given by the supplier, or were not installed with an acceptable level of care and skill, and within a reasonable period of time, the consumer is entitled to a remedy (e.g. refund, repair, or having the panels replaced). CBS has developed a guide for solar installers which outlines responsibilities in relation to licensing requirements, quotes, contracts, payments and when building indemnity insurance is required. CBS also has a guide for consumers to help them make an informed choice before purchasing a solar panel system.

For more information see the ‘Guide for solar panel installers’ at cbs.sa.gov.au or contact CBS on 131 882. SA BUILDER APRIL – M AY 2017

INSURANCE

QUENTEN WATKINS

MBA Insurance Services – State Manager, South Australia

Cyber insurance

ith builders becoming increasingly reliant on computers and technology for communication, record keeping, and managing their business, it’s important to consider how to protect your business from technology-related incidents, which only a few years ago would have seemed futuristic and far fetched. Each day 80 million photos are uploaded to Instagram, 500 million tweets are sent and Facebook shares 4.75 billion pieces of content. Experts warn we overshare way too much and this leads to higher possibilities of Cybercrime. The Australian Government estimates almost 700,000 businesses have experienced a cybercrime, 60 per cent of all attacks were felt by the small to medium size businesses, with the average cost of a stolen record being $145 and a Cybercrime attack in the vicinity of $275,000. Cyber incidents can be simple and innocent as sending an email with sensitive information to the wrong recipient, or attaching the wrong file to an email. Others can be more malicious and intentional, with hackers installing ransomware which can delete, copy, or deny access to critical business information, or phishing emails sent to key employees where seemingly reasonable invoices or payment demands are received, which can result in payments being made to hackers rather than subcontractors and other legitimate parties.

Cyber insurance provides cover across several different sections:

Privacy Breach Coverage typically includes legal defence costs and third party claims for retrieving, repairing, restoring, or replacing: • Personal, Corporate, or Employee information System Damage Coverage includes lost, damaged or destroyed data, systems or hardware – as well as external IT forensic or security consultants costs for: • IT systems • IT records/data Business Interruption Cover for loss of profits due to a cyber event Computer Virus and Hacking Cover includes: • Loss or theft of your data, or data for which you are responsible ie. customer data, or plans • Attacks by employees and third parties both typically covered • Loss caused by phishing emails or denials of service attacks Multimedia Liability Cover includes: • Protection against online libel, slander or defamation • Coverage includes infringement of copyright, trademarks and trade names • Cover extends to all of your marketing material – including both digital and print Extortion Cover includes: • Payment of ransom • Costs of negotiating and mediating due to an extortion attempt Privacy Fines and Investigations Cover includes: • Fines and penalties incurred by you due to a privacy breach • Legal defence and investigation costs Cyber attacks have increased significantly over recent years, and are showing no signs of slowing down. The team at MBA Insurance Services can provide you with a quotation for Cyber Insurance to protect you from technology related risks. Cyber insurers offer a 24/7 response unit – to provide you with immediate support for all cyber incidents and data breaches.

SA BUILDER APRIL – M AY 2017

Building Australia Conference 2017

23–25

Hobart, Tasmania

November 2017

DIS

Invitation You’re invited to join Master Builders from around Australia to be part of the most exciting and rewarding building Industry Event in 2017! The Master Builders National Conference will be held at the recently restored heritage Princes Wharf I – a first class multi-purpose function venue in the centre of the Salamanca district in Hobart. The conference will deliver a rewarding experience for members and an opportunity to explore the iconic tourist destination of Tasmania. I look forward to welcoming members and their partners from across Australia. Dan Perkins National President Master Builders Australia

it’s serious business... The National Conference ‘Building Australia’ focuses on leadership, innovation and visionaries, assisting members in making informed decisions on future trends, business growth and innovation whilst developing and maintaining strong leadership attributes within their business ethos.

it’s rewarding... The program has been designed to provide learning and networking opportunities which will give your business the edge in an ever-changing industry. An interactive exhibition will showcase the latest building products and services.

it’s fun... You will enjoy the exciting social program for delegates and their partners which includes a special conference dinner at the world famous MONA and the 2017 National Excellence in Building and Construction Awards.

the possibilities are endless! Discover Tasmania, Master Builders has negotiated special rates for pre and post-conference tours. Extend your stay and enjoy the scenic and culinary delights of Tasmania.

For more information and to register your interest go to: www.masterbuilders.com.au

Images courtesy: MONA, Kathryn Leahy and Alastair Bett

™

SKILLS INVESTMENT

A new generation of builders The benefits of mentoring apprentices

he exploration of the work-based social support structures associated with the transition from school to work for young people and how these could, potentially, contribute to better mental health and wellbeing outcomes has been the topic of an intendent study conducted by the NCVER (National Centre for Vocational Education Research). Whilst other research and policy concerning young adults and mental health tends to focus on ‘at risk’ individuals this project, however, examined more broadly the important role of the workplace as a potential site of social support. It also extrapolated from and contributes to broader debates about the apprenticeship model in Australia, and notions of vocational development. The findings have been generated from a literature review and eight case studies involving both small and large organisations across some of Australia’s leading firms and group training organisations, specifically those with apprentice completion rates sitting at about 90 per cent, well above the industry average. The report identifies the forms of social support successfully provided to young carpentry apprentices. It found that those who host apprentices from group training organisations such as Master Builders SA, and have daily contact and supervisory roles, have a far greater influence on apprentices than the Field Officers employed by the employer to oversee their training. Whilst formal mentoring arrangements are set up by the employer, the informal and peer-based mentoring practices play a much more significant role in supporting the mental health and wellbeing of apprentices and are often superior to those provided under a formal mentoring arrangement. The paradox is that these practices are hard to ‘formally’ nurture; however, hosts can create environments in which they can succeed. According to the study, the essential ingredient is a quality approach to vocational development, which both large and small organisations can foster by: • valuing the time required for both on and off-the-job training

SA BUILDER APRIL – M AY 2017

• ensuring supervisors and peers recognise that skills development takes time, and requires active nurturing on the job • placing high value on sharing skills and teamwork • respecting and placing importance on time for innovation • encouraging apprentices to tap into wider support networks, and • ensuring access to both formal and informal mentoring Creating informal support structures works best when the arrangements are integral, not incidental, to the business model of the organisation. In other words, social sustainability is seen as inseparable from the strategies necessary for economic success. Whilst formal mentoring plays an important role, and works well when mentors are formally separate from the host and the workplace, it should be a complement to, and not replace effective apprenticeship support arrangements on the site and the day to day informal coaching and mentoring of supervisors in the workplace. Even when internal support structures function well, sometimes arrangements that are formally separate from the workplace are required to provide a ‘safe environment’, where sensitive issues, such as those concerning mental health, can be discussed. Master Builders SA Apprentices system offers that formal external avenue for mentoring through field staff who stay in touch and monitor the apprentice’s progression and can be the confidential ear for apprentices who have issues within the workplace or want an “arm’s length” confidante with which to explore issues. EXCERPTS FROM NCVER

Beyond mentoring: social support structures for young Australian carpentry apprentices By John Buchanan, Catherine Raffaele, Nick Glozier and Aran Kanagaratnam. Research report, 2 August 2016.

SAFETY QUALITY ENVIRONMENT

CHRIS GINEVER

SQE Manager

Industry Report Industry: Construction

afeWork SA has issued a draft report summarising the state of South Australia’s building and construction industry. The information provides a useful insight into the regulator’s concerns and likely actions in future. Master Builders SA encourages members to be aware of the observations offered, and to provide any feedback to Master Builders SA to allow us to consolidate and pursue industry concerns.

Since 2005, South Australia has seen 28 fatalities in the construction industry, which equates to 19 per cent across all industries. Falls from a roof, scaffold or ladder was the leading cause of death. Failure to provide effective fall prevention measures was the most common reason for the Regulator issuing prohibition notices, workers being hospitalised and complaints received in the past two and a half years.

Work in the construction industry involves the construction, alteration or demolition of buildings, structures as well as ground preparation of building sites. The construction industry is the third largest in Australia, employing more than one million workers, which is nine per cent of national employment.

The most common causes of injuries also include falls from height as well as body stressing, being hit by moving objects and hitting objects with parts of the body.

The construction industry is comprised of three broad areas of activity and operates in both the private and public sectors: • Residential building – comprising all types of houses (detached, semidetached, terraced houses, houses built in a row, etc.) • Non-residential building – buildings other than houses (warehouse and industrial buildings, commercial buildings, buildings for public entertainment, hotels, restaurants, educational buildings, health buildings, etc.) • Engineering (civil) – is a section of the broader construction industry focused on building core infrastructure (pipelines, telecommunications, sewers, water treatment systems, highways, roads, bridges, subway tunnels and light rail transit lines). Demand for, and supply of, these services is driven by economic factors including population growth, consumer confidence, changes in interest rates and inflation. Despite having some common hazards, they also have their own distinguishing characteristics and specific WHS management needs. Construction workers have the third highest fatality rate in Australia and the fifth highest rate of serious workers’ compensation claims. Safe Work Australia estimates that in 2012/13 the cost of work-related injuries and fatalities in the Construction industry to the Australian economy was $8.84 billion. There have been significant reductions in the numbers and rates of injuries and fatalities in this industry over the last ten years or more, however it still remains a high-risk industry. 28

Subdivisions within the construction industry recorded a decline in injury claims with some remaining steady. Collectively, there has been a decrease of 13 per cent in 2016 compared to financial year averages of 2012/2015. The same period for lost time injuries greater than 10 days has decreased by 28 per cent (see Attachment A). The top ten occupations with the highest number of claims in South Australia are within the residential and non-residential building sectors. Despite SafeWork Australia listing painters and decorators, roofers and plumbers as the occupations most at risk within the residential building sector, the top five in South Australia are carpenters, labourers, electricians, plumbers and refrigeration mechanics (four being trades). Carpenters had the highest injury claim rate for the past five years with 810 claims since 2012. This equates to 9.4 per cent of all claims. The most common causes of injuries are falls from height, being hit by moving objects and hitting objects with parts of the body. Claims in this occupation have increased over the past three years showing no significant improvements. Under the Planning Strategy for Metropolitan Adelaide that introduced medium and high-density housing, the residential building sector is now building dwellings up to five storeys high. This has led to dwellings being built close to property boundaries, and reviewing complaints received and consultation with the Office of the Technical Regulator (OTR) has shown an upward trend in scaffolds and buildings encroaching safe distances from power lines.

SA BUILDER APRIL – M AY 2017

SAFETY QUALITY ENVIRONMENT RTWSA data has shown a high cost of injuries to apprentices in the Construction industry with $1.3m in compensation paid in the 2014/15 financial year. Despite mental health claims within the construction industry being seen as low at 103 claims over the past five years, a study on the economic cost of suicide and non-fatal suicidal behaviour in the Australian construction industry by state and territory during 2015 found that rates of suicide in the construction industry was higher than the state and national average.

Injuries by occupation Safe Work Australia has listed painting and decorating, roofing and plumbing as the occupations most at risk. The top ten occupations in South Australia that experienced a workplace injury or disease during the five-year period from financial years 2012 to 2016 are: All Claims FY 2012 – FY 2016 Top 10 Occupations

Claims

The SafeWork SA construction team is currently undertaking a pro-active compliance campaign on activities associated with the housing industry. An opportunity exists to provide information and support to stakeholders

Carpenter

810

9.4

Builder’s labourer

790

9.2

Industry Safety / Injury Profile – National priorities The Australian Work Health and Safety Strategy 2012-2022 has identified construction as a priority industry for action, focusing on reducing workplace fatalities, injuries and disorders. This will take place through collaborative partnerships with industry, unions, other organisations and the community.

Electrician (General)

700

8.1

Plumber (General)

590

6.9

Air-conditioning and Refrigeration mechanic

305

3.6

Truck driver (general)

290

3.5

Concreter

275

3.3

Labourer NEC

245

3.0

Roof plumber

245

3.0

Fibrous plasterer

225

2.8

Cost of injuries This indicates one aspect of the many costs that impact on PBCUs, workers and the community as a result of a workplace injury or illness. 25 per cent of the total cost of work-related injury and disease was due to the direct costs of work-related incidents. The remaining 75 per cent was accounted for by indirect costs such as lost productivity, loss of income and quality of life. FY

2012

2013

2014

2015

2016

Claim count

1909

1748

1654

1724

1554

Claims per $1 million remuneration

$61,000

$53,000 $45,000 $46,000

$51,000 ReturnToWorkSA

ReturnToWork claims Most subdivisions recorded a decline in claims with some remaining steady. Collectively, there has been a decrease of 13 per cent in 2016 compared to the financial year averages of 2012-2015. The same period for loss time injuries greater than 10 days has decreased by 28 per cent. SafeWork Australia has listed occupations within the residential building sector as most at risk.

ReturnToWorkSA

Mechanism of Injuries: The national priority of work-related disorders include musculoskeletal and mental health and this is reflected in the causes of injuries below. Most injuries are cause by lifting, pushing or pulling an object, hitting or being hit by an object or falls. All Claims FY 2012 – FY 2016 Top 9 – Mechanisms of injury

Claims

National

Body stressing

2906

23,340

Being hit by moving objects

1728

10,660

Falls, trips and slips of a person

1620

17,660

Hitting objects with part of body

1278

6,310

Vehicle incidents

353

Heat, electricity and other environment …

246

Sound and pressure

183

Chemical and other substances

152

Mental stress

103 ReturnToWorkSA

SA BUILDER APRIL – M AY 2017

SAFETY QUALITY ENVIRONMENT

Body Location The typical injuries sustained nationally are: cuts/open wounds; sprains/ strains and chronic joint or muscle conditions. Mental stress claims are linked to non-physical locations below, and are generally associated with a higher cost of claims. All Claims FY 2012 – FY 2016 Top 7 – Body locations

Claims

Upper limbs

3275

Lower limbs

1834

Trunk

Notifiables: Serious injury or illness From 28 April 2014 to 31 September 2016, there have been 68 notifications for serious injury or illness of a person requiring immediate treatment. About three in every four notifications result in immediate treatment as an in-patient in a hospital. Falls accounted for 36.7 per cent of all notifications with serious laceration at 32.2 per cent, and of those 10.2 per cent required admittance as an in-patient. Serious injury or illness

Total

Fall from height

36.7

1799

Laceration

10.2

Head

1014

Crush injury / impalement

8.8

Multiple locations

297

Fracture

5.8

Neck

148

Electric shock

2.9

Non-physical locations

107

Injury to public

2.9

Non-work related

2.9

Heat stroke

1.4

Fumes

1.4

Total

73.5

Serious lacerations

22.0

Immediate treatment as an in-patient ReturnToWorkSA

Fatalities (South Australia) Since 2005, South Australia has seen 28 fatalities in the construction industry, which equates to 19 per cent of the 149 fatalities across all industries. Falls from a roof, scaffold or ladder was the leading cause of death. Cause of fatality

Number

Falls from height

Hit by moving object

Vehicle

Serious head injury

1.4

Electric shock

Serious eye injury

1.4

EWP

Serious burn

1.4

Total

100

In 2014 and 2016 there were two work-related fatalities due to elevated work platform (EWP) use. 30

SA BUILDER APRIL – M AY 2017

SAFETY QUALITY ENVIRONMENT Notifiables: Dangerous incident From 28 April 2014 to 13 October 2016, there have been 229 notifications for a dangerous incident that exposes a worker or any other person to a serious risk from an immediate or imminent exposure. The fall or release of an item accounted for 25.3 per cent of all notifications with uncontrolled escape of gas at 24.4 per cent and electric shock at 15.3 per cent. All Claims FY 2012 â&#x20AC;&#x201C; FY 2016

Complaints From 28 April 2014 to 27 October 2016, there have been 1574 complaints received. There are four triggers used following a complaint with workplace safety accounting for 57.7 per cent, asbestos at 24.9 per cent and public safety at 16.8 per cent. Trigger

Total

Workplace safety

908

57.7

Asbestos

392

24.9

Dangerous incident

Total

Fall or release from a height of any plant, substance or thing

25.3

Uncontrolled escape of gas or steam

24.4

Electric shock

15.3

Public safety

265

16.8

Collapse, overturning, failure or malfunction of, or damage to, any plant (authorised)

14.4

Bullying

0.6

Uncontrolled escape, spillage or leakage of a substance

9.2

Total

1574

100

Collapse or partial collapse of a structure

4.8

Uncontrolled implosion, explosion or fire

3.5

Any other event prescribed by the regulations

1.3

Collapse or failure of an excavation or of any shoring supporting an excavation

1.3

Uncontrolled escape of a pressurised substance

Total

229

100

Below are the top 12 issues identified in the complaints received by SafeWork SA. Words* associated with a fall had the highest number with scaffolding fourth. Asbestos and demolition/dust ranked second and third respectively. Complaints associated with apprentices and working near power lines have shown an increase over the past two and a half years. Key word

2014

2015

2016

Total

Fall / height / edge / standing

121

249

247

562

Asbestos

167

166

421

Demolition / Dust

119

108

265

Scaffold

113

105

283

Trench / Excavation

Traffic

Rubbish

Electric

Crane

Toilet

Power line

Appre (apprentice)

*Key word searches can duplicate numbers SA BUILDER APRIL â&#x20AC;&#x201C; M AY 2017

SAFETY QUALITY ENVIRONMENT WHS Prohibition Notices From 28 April 2014 to 31 September 2016, there have been 1128 prohibition notices issued. Risks associated with working at heights and scaffolds accounted for 40 per cent of all notices, followed by electrical equipment that was either damaged or untested. Top 10

Total

Working at heights

337

29.6

Portable electrical equipment

192

17.0

Maintenance of plant and equipment

128

11.3

Scaffold

124

10.9

Asbestos – Chapter 8

5.9

SWMS

3.0

Electrical installation

3.2

High risk work licence

2.3

Falling objects

2.3

Plant designed to lift

2.1

From 28 April 2014 to 31 September 2016, there have been 1128 prohibition notices issued. Risks associated with working at heights and scaffolds accounted for 40 per cent of all notices, followed by electrical equipment that was either damaged or untested.

WHS Improvement Notices Top 10

Total

Hazard identification and risk control measures

187

13.8

Asbestos

114

8.5

Working at heights

101

7.5

Safety management plans

6.5

Information, instruction and training

6.2

Access and egress

6.1

Portable electrical equipment

5.8

Site security

5.3

SWMS

5.0

Toilets

3.8

South Australia Data A study by the University of South Australia ‘Factors associated with the severity of construction accidents: The case of South Australia 2002 to 2011’, found of the 24,764 accidents reported in the construction industry that: • as the age of the worker increases, the severity of accidents tend to increase. • experienced workers tend to be common among severe accidents compared to relatively new workers. • females were found to be under-represented among accidents as well as fatalities. • workers belonging to small companies and working for small projects were common among severe accidents (4-10 LTI), while those from medium-sized firms and projects are the safest. • sites located in regional SA and Adelaide’s outer suburbs were prone to fatal accidents compared to those in the inner suburbs. • building projects were found to be more dangerous than other types of construction, while mechanics and plant operators were common among the fatalities. • falls were not overwhelmingly related to severe accidents. • internal organs, multiple injuries and the head were mainly associated with fatal accidents compared to other body locations. • factors such as the time of accident, day of the week and the season were not strongly associated with accident severities. Recommendations – Short to medium term strategies (2016-17) Master Builders SA is considering the following recommendations as proposed by Safework SA: • Continue close working partnerships with industry leaders, community organisations and industry associations, to influence the community about the importance of work health and safety in the construction industry. Through engagement with industry organisations SafeWork SA can utilise the leadership to drive change and offer in-kind support to planned industry activities. • Develop a construction industry infographic to inform the community about work health and safety facts within the construction industry. The infographic should highlight that working at heights is the highest risk of serious injury or fatality in the residential building sector.

SA BUILDER APRIL – M AY 2017

SAFETY QUALITY ENVIRONMENT

• Occupation hotspots to be developed for each priority sub-division/major occupation to highlight priority issues to address. • Continue to support DPTI cultural safety outcome based measures to drive cultural change and leadership. Extend measures to include asbestos management and create a partnership to educate the construction industry and local councils on road traffic legislative changes and new national code of practice for traffic management. • Partner with OTR and representatives to develop tools and educate the industry on working near overhead power lines. This issue is showing an increase in complaints for both SafeWork SA and the OTR. SafeWork SA will look to partner with OTR and SAPN on an educational campaign similar to ‘look up and live’ but more around the planning stage. • Work with the utilities industry to find solutions to minimise the risks of striking underground services. This issue is showing an increase in complaints. SafeWork SA will look to partner with utility companies and representatives to provide targeted information and support related to work health and safety issues. This issue also affects local councils, meaning a cross Industry Advisor approach. • Asbestos Awareness Campaign 2016 to raise awareness on legal responsibilities. • Importation of asbestos containing materials (ACM) has caused a number of recent high profile incidents. This has highlighted a need for SafeWork SA and partners to increase the awareness of asbestos to all duty holders. • Asbestos Awareness Week will see the continuing support to raise awareness with duty holders and the general public on the dangers associated with asbestos. A campaign brief has been developed aimed at all duty holders throughout the life cycle of asbestos. • Asbestos Awareness Week is an annual event held in the last week of November. Educational activities will continue to be coordinated with stakeholders. • Influencing safety behaviours with apprentices by partnering with ReturnToWork, HIA, MBA and group training organisations to understand risk-based decision making that leads to injuries in the residential building sector. Focus group meetings will be held and a report furnished on completion. • EWP medium strategy. The Industrial Relations Consultative Committee (IRCC) met and established a subcommittee, resulting in a tripartite partner approach. SafeWork SA will work with union and industry partners to educate duty holders on the risks associated with EWPs. Following the development and dissemination of an information sheet, the partnership will conduct toolbox talks and begin the review of existing training requirements surrounding the use of EWPs. • Mental health. Cooperate with other industry advisors and mental health groups to develop material on what mental health services are available and develop a referrals process between groups. Research has found that for every 15 suicide attempts there is one fatality, and SA BUILDER APRIL – M AY 2017

from the 15 attempts, 3 (17 per cent) become fully incapacitated and 12 (83 per cent) have short absences from work. SafeWork SA customer service would need to be trained on all available services. • Develop and publish industry/hazard-specific articles to raise awareness and provide practical solutions for high-risk priority topics. This will be an ongoing strategy covering topics such as: • Heat stress • Asbestos • Template SWMS • Residential building induction • Site security • First aid • Electrical testing and tagging • WHS management plan • Fine particular matter (dust) • Manual handling • Working at heights – residential building • Contractors management – residential building Medium – long term (2017-18) • Working at heights. Partner with industry to first focus on compliance with scaffolding, then continuing through other working at height risks. • Safety Committees. Work collaboratively with industry to cross‑promote our programs throughout the construction industry. • Partner with associations. To deliver WHS workshops across the State, based on the specific issues facing their members. • Influencing safety through contract management. Develop relationships with key stakeholders in the residential building sector to ensure the person/s that have power to influence and control WHS decision making understands their duties when engaging contractors. • Safety culture and leadership. It has been identified that all industries would benefit from a safety leadership and culture program. SafeWork SA will engage with industry stakeholders to seek support and guidance in the development of this program. Currently the industry is looking at the training components for a site supervisor. Construction team pro-active compliance campaigns. To work closely with the construction team and look for opportunities to provide support and information to the construction industry, either prior to the campaign or following the findings in the construction team campaign report. Long term (2018+) • EWP engineering controls. Engage suppliers and universities supporting the development of engineering controls, including technology such as proximity sensing devices.

From the 7 star efficiency of the US7 to the designer aesthetic of Zena, Daikin has a broad range of market leading air conditioners for any application. AIR CONDITIONER CAPACITY RANGE RANGE CAPACITY

2.5kW 5.0kW

CAPACITY RANGE

2.5kW 5.0kW

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E PE R SU

FFI C IE N CY R AT I

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Cooling

ENERGY RATING Capacity Output kW

Power Input kW

2.50

0.42

A joint government and industry program Daikin air conditioner FTXZ25N / RXZ25N

Compare models at www.energyrating.gov.au

FFI C IE N CY R AT I

Heating

The more stars the more energy efficient

ENERGY RATING Capacity Output kW

3.60

Power Input kW

0.62

Variable output compressor (heating and cooling)

YES



When tested in accordance with AS/NZS 3823.2. Actual energy use and running costs will depend on how you use the appliance Demand Response (AS4755)

Mode 1

Mode 2

Mode 3

US7

ZENA

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SAFETY QUALITY ENVIRONMENT

CHRIS GINEVER

SQE Manager

Residential construction site blitz: WHS management plans and their implementation

very business undertaking a construction project valued at $450,000 or more must have a WHS Management Plan (WHSMP).

The regulations have a broad application, extending the requirements beyond a business to every ‘person conducting a business or undertaking’ (PCBU) – a definition that brings in personal responsibility behind every business. The development of the plan is relatively simple, but the implementation is where a number of small companies are experiencing difficulty, so the Master Builders SA SQE department has been assisting some of them to meet their compliance issues. The essence of a well-implemented plan is the communication of that plan to the subcontractors, and the ongoing consultation with the subcontractors with regard to WHS matters on a daily basis. Effective project planning is the keystone to any hazard management procedure, and the success of any WHSMP is defined by being able to identify potential hazards and controlling the risks with simple but effective risk management principles. Similar to project management, where identifying the milestones and the sequence of processes needed to achieve each step towards the goal of a completed project, we must also identify the hazards associated with each step in the process, and assess the associated risks and implement, monitor and review control measures to mitigate those risks.

The SQE department provides assistance to members by developing tailored WHSMP, mentoring construction managers in the implementation of the system, and advising builders in regard to the documentary requirements for the management of the plan. Remember: “If you didn’t document it, you didn’t do it”. Information sessions “Many members have approached the SQE department in recent months for support with managing knowledge gaps for their construction managers. Subjects that have been requested include: Asbestos awareness: • How to identify asbestos, and • What procedures to put in place to manage discovery of asbestos containing materials. Scaffolding requirements: • Hazard management, • Public safety, • What to look for with different types of scaffolds – modular, mobile, etc. • Common issues relating to work at heights, • Proximity to powerlines and how to manage WHS responsibilities, and the prevention of falls and falling objects. For further information contact the SQE Department on 08 8211 7466

Temporary structure safety

afety is essential during the erection of temporary timber bracing. Poorly designed, poorly constructed or poorly maintained temporary structures are a danger to workers and the public. Duty holders risk prosecution for failure to minimise and manage risks arising from the structure. Recent storm conditions across the country have created wind gusts exceeding 120 km/h, highlighting these potential risks. Temporary site structures should be able to resist these and other serious weather conditions. What is a temporary structure? Temporary site structures include site sheds, temporary awnings, hoardings, site fences, temporary-covered walkways and signage. They do not include temporary works such as scaffolding, formwork/ falsework or props and bracing which have their own design requirements that must be followed.

SA BUILDER APRIL – M AY 2017

Control measures Temporary structures must be safe with all risks managed so far as is reasonably practicable. They should be designed and constructed ensuring: • A documented risk assessment of potential severe weather conditions for the specific site location is conducted, including the ability of the structure to resist uplift and lateral wind loads; • That it is in accordance with the National Construction Code, relevant Australian Standards, and accepted practices; • Control measures include engineering principles; and • Any supporting structure and/or connection/anchoring mechanisms must be assessed by a competent person (typically a structural engineer), as being able to support the temporary structure. Building permits may also be required for some temporary site structures including fences, hoardings and signs. Duty holders should check with the relevant authority. For more information contact the Technical & Development Department on 08 8211 7466 35

PROJECT FEATURE

The Princes Terrace Adelaide 6 Star Green Star – Design & As Built v1.1 (Design Review)

he Princes Terrace Adelaide brings low-carbon lessons learnt in the UK to Australia – and shows why innovative thinking and clever design can create spectacular, sustainable outcomes that stand the test of time. “The Princes Terrace Adelaide demonstrates that small projects can make big impact when it comes to sustainability,” says Romilly Madew, Chief Executive Officer of the Green Building Council of Australia. “As the first residential project in Australia to achieve a 6-Star Green Star rating, each home within the Princes Terrace Adelaide will use 50 per cent less energy and 50 per cent less potable water than a typical urban dwelling.” A unique partnership The result of a unique collaboration between HRH Prince Charles’ Princes Foundation for Building Community, Princes Charities Australia, Renewal SA and Defence Housing Australia, the Princes Terrace Adelaide demonstrates how accessible low-carbon living can be achieved without compromising quality, affordability or finish. David Toman, Chief Executive of The Princes Foundation for Building Community, says the project ‘brings alive’ many of the Foundation’s key principles: “The project applies many of the lessons we’ve learnt from our work in the UK, while evoking the specific heritage of the site, and using local materials to create a harmonious and enduring community.” The Princes Terrace Adelaide not only reflects the much-loved terrace homes that have featured throughout Australian history, but also builds on that heritage by creating a series of terraced homes that are environmentally friendly and sustainable. The philosophy behind the design was to blend rich, local heritage with contemporary living.

“We wanted to build for today with a strong focus on sustainability and the environment, while recalling traditional Australian terrace architecture. This exterior is not only decorative, but it is functional in creating a more sustainable home,” David explains. Redefining sustainable living Located in the burgeoning community of Bowden, the Princes Terrace Adelaide features eight three-bedroom townhouses, and four coach mews units – a reflection of the areas architectural legacy. A former industrial site, Bowden is undergoing a radical transformation that is redefining sustainable living in South Australia. The development has gained national recognition for Renewal SA's bold action to mandate all new buildings within the community to achieve a minimum 5-Star Green Star rating. Renewal SA has also achieved a 6-Star Green Star – Communities rating for the entire precinct. “Defence Housing Australia is passionate about building sustainable, thriving communities, and this starts with housing,” says Jan Mason, DHA’s Managing Director. “For our Defence families, this means passing on not just financial savings that come with more sustainable design, but a healthy and active lifestyle that will provide a better future for their children.” Built for performance The Princes Terrace Adelaide project has been designed to be extremely climate responsive and ensure comfort for residents. Starting with sustainable design basics, each dwelling has been orientated to maximise natural daylight and to passively heat and cool throughout the year. Shading devices and balconies have also been optimised to allow

SA BUILDER APRIL – M AY 2017

the sun in the winter and shade in the summer. All dwellings have also been designed to promote natural cross ventilation for cooling in the summer, as well as ensuring healthy airflow. The building fabric – walls and roofs – will be well insulated to ensure comfortable internal temperatures as well as efficiency of air conditioning systems. Double-glazed windows are also specified throughout for energy efficiency and acoustic comfort. The project will use mainly low energy heating and cooling systems, like ceiling fans in summer and fireplaces in winter. While the need for air conditioning has been reduced, highly efficient zoned systems can be switched on during peak Adelaide temperatures. Each dwelling will also have a 1.5kW photovoltaic array installed on the roof, helping to reduce energy use during the day. The result? A building that uses 50 per cent less energy and produces fewer greenhouse gas emissions than a standard Australian residential dwelling. “From early stages in the project design, the team utilised computer simulation and holistic design analysis to inform the building form and sustainable performance. Spending time on this analysis early in the design allowed us to test many scenarios, to ensure the future home owners benefit from the most appropriate construction,” says Deborah Davidson of dsquared Consulting, the project’s sustainability consultant.

SA BUILDER APRIL – M AY 2017

Local and low carbon materials Local, low-carbon building materials are a hallmark of the Princes Terrace Adelaide, such as locally made concrete with blast furnace slag content (as waste product), local granite and bricks re-used from old Bowden industrial buildings. All timber used in the project will also be from certified sustainable sources. Procuring high-quality, durable and sustainable materials locally has necessitated extra flexibility during the design process. “The design initially called for black granite benches, however Adelaide’s local granite is red in colour. We worked closely with the design team to make this change – and as a result, we have a material that is not only attractive and locally-sourced, but generates fewer emissions during transport to the site,” says Jan Mason. “Using natural, locally-sourced materials also supports a more sustainable supply chain – so this project is helping to build skills and opportunities locally.” The project is also undertaking a full lifecycle assessment to measure the total environmental impact including the embodied energy in materials in construction, energy use in operation and impact at end of life.

PROJECT FEATURE

University of South Australia’s Health Innovation Building Future-proofing Construction

ocated in the heart of Adelaide’s city centre, the University of South Australia (UniSA) Health Innovation Building (HIB) is one of the final pieces of the puzzle in the creation of Australia’s largest Health and Biomedical Research Precinct. This striking 16-storey health research building will be an integral part of the South Australian Health and Biomedical precinct on North Terrace. Co-located with the South Australian Health Medical Research Institute (SAHMRI), the Adelaide University’s Health and Medical Sciences Building and the new Royal Adelaide Hospital (new RAH). The location alone will open up a number of new health research, teaching and community engagement opportunities. Opening to the public and students in 2018, the state-of-art research building will house the Centre for Cancer Biology, UniSA’s School of Pharmacy and Medical Sciences and a world class technology-focused Innovation and Collaboration Centre. Not only that, it will also become Adelaide’s first scientific playground with the addition of a unique public science centre, the Museum of Discovery (MOD). Thinking Outside The Box An intense level of complex services is required for the HIB with laboratory gases, mechanical services, extensive data and electrical requirements, a host of research equipment and a myriad of BMS and monitoring requirements. The services requirement for this project are not unlike a major hospital, in some part are even more complex.

SA BUILDER APRIL – M AY 2017

Facing the challenges head on, the project team adopted several solutions to resolve the extensive scope of services, along with services models and documentation at various stages of completeness and coordination, the Animal House doubling in size and the scope introduction of part of the University’s School of Pharmacy and Medical Sciences. Thinking outside the box, fire rating compliance, seismic requirements, pre-fabrication modules and the complexity of services requirements including changes to the fire rating and compliance all needed careful cross-disciplinary design and coordination. To resolve some of these matters, and to manage the mirage of digital design data, the mechanical, electrical, hydraulic, fire, data, BMS and AV services consultants all co-located to create the HIB BIM Hub. Offering a common space within the offices of lead mechanical contractor, AG O’Connor, the HIB Hub allows for all trades to collaborate and coordinate the development of their shop drawings and models. Staffed full time by the main services contractors, the minor trades utilise the space as required. By the end of the March 2017, 12,000 hours had been invested into the coordination of BIM models and 2D drawings for the whole building. This common space offers advantages to all, with each party seeing a dramatic saving in both time and cost. A few examples are below: • A simple, yet effective advantage has been the “one server” approach whereby all data is saved to one central location. This has considerably reduced upload and download times, and improved coordination across disciplines. SA BUILDER APRIL – M AY 2017

PROJECT FEATURE

• With time being so precious, the use of BIM has seen a clash resolution and detection process reduce from three days to just four hours. The collaborative approach and establishment of the HIB Hub, means that issues are raised, addressed and resolved as they arise. • The team utilised prefabricated service risers to streamline the building’s services. The service risers took six months to design, manufacture, fire-rate, install steel work, pressure test and fire wrap as required, all of which occurred off site. The installation of 2,400m2 of ductwork and 600m2 of fire wrapping was completed within a three-day period, saving many months of onsite works. • Due to some changes in design requirements by the University, the late addition of these being the increased animal facility and the introduction of the School of Pharmacy and Medical Sciences meant that shop drawings and documentation needed revisiting. The HIB Hub meant that time impacts were minimised, resulting in a happy client and no impact on the program. • Another positive outcome of the introduction of the HIB Hub was the decrease in RFI traffic. Collaboration between interrelated disciplines in the Hub has meant that items have been addressed immediately and often face-to-face rather than raising RFI’s. The trade sub-contractors also hold regular design meetings with each services’ specialist consultant and Hub members which has enabled real-time review and resolution of emerging issues and challenges. Hansen Yuncken is always looking to deliver smarter solutions. By embracing leading edge technology and creating a smarter, streamlined solution to traditional methods of shop drawing and coordination of services trades, the HIB Hub is the perfect example of this goal. Using the integrated 3D modelling for all the trades and then extending this out to the Trimble set out (electronic laser set out of fixing locations), has ultimately meant fewer clashes and quicker information on site. The benefits on site were realised the minute services installation commenced. Prior to this though, it was recognised by UniSA’s consultants that the level of design resolution and the quick turnaround of the shop drawing process was a great improvement. Topping out was recently celebrated by the project team. The final floor was poured and the crown precast columns put in place. The first tower crane will be removed at the end of the month, signalling that the structure is almost complete. Façade is being wrapped around the building, so it will soon be water-tight. Moving inside the building, fit-out has commenced all the way up to Level 7, with high level services across all seven levels. Blockwork partitions and ceilings are progressing from basement to Level 5 with other second fix finishes commencing on the lower levels including the installation of feature internal stairs. 40

Due for completion in 2018, the HIB will be an integral part of the collaborative and holistic approach to health research. It will lead the way in cancer research, medical drug discovery, be instrumental in developing Australia’s next up and coming talent through MOD, and be a space for new business concepts and products to come to life through the Innovation Collaboration Centre.

40 Stepney Street Stepney SA 5069 Ph 08 83633155

We are very proud to be a part of the team on the HIB building and look forward to delivering a great outcome for UniSA.

SA BUILDER APRIL – M AY 2017

Established for over 45 years O´Connors have been associated with the mechanical engineering and construction industry for five generations to date. • We deliver systems that work reliably and efficiently. • This is due to having a strong, well balanced team of design engineers, construction staff and NEBB certified commission technicians. • We provide integrated engineering, system design, BIM coordination, prefabrication, commissioning and asset management solutions. • We provide technical advisory services on Greenstar, NABERS Rating, Energy Efficiency and Value Management options. • We want to be your Engineers and Constructors of choice, to build and maintain your mechanical assets.

Jocon (SA) Pty Ltd are proud to be associated with Hansen Yuncken in delivering the structure of the UNI SA Health Innovation Building project. We continue to specialise in major project types of concrete construction including: • Industrial/Commercial Projects • Health and Aged Care • Multistorey Structures

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MEMBERSHIP

Master Builders corporate golf day back by popular demand

or most people a morning out of the office or away from site sounds pretty appealing, so there was little surprise when around 70 people booked in to enjoy an early morning round of golf at the Master Builders corporate golf day, held at Mt. Osmond Golf Club. Early starts are nothing unusual for our industry, but having an early start with breakfast rolls and fresh coffee put everyone in a great mood and terrific frame of mind to enjoy the 18 holes of golf in an Ambrose competition. Corporate partners and players alike enjoyed the on-course rivalry, and commented that the morning offered the perfect opportunity to network with fellow industry representatives and more importantly, valued clients. The day also afforded the opportunity to establish new networks and business prospects. Even a late summer downpour didn’t dampen spirits as the golfers finished their rounds and adjourned to the clubhouse to enjoy a gourmet lunch and well-earned refreshments. Guest speaker Les Burdett entertained attendees with his interesting, and often amusing, anecdotes of life as Adelaide Oval’s head curator. Whilst everyone who attended had a great day not everyone can win, and those honours went to the team from Zee Constructions, with the Banner/ Mitre 10 team taking out second place and the CSR crew coming in third place. Congratulations to all involved! Events such as these are only possible with the ongoing support of the Association’s corporate partners and CSR, Origin and Seasonair are to be commended and thanked for their ongoing support of the Association and the industry as a whole.

Corporate partners:

SA BUILDER APRIL – M AY 2017

MEMBERSHIP

Apprentice of the Month Awards

January

February

Adam Preece

William Christie

Apprentice comments: I feel very privileged to have been nominated for apprentice of the month, It made me feel proud and is showing that my apprenticeship is on the right track. It was a great opportunity being accepted to become a part of Master Builders SA in early 2015. Since I started with the company I have worked for Greg Nelson from TAK Construction. Greg has taught me more than I ever thought I would know at this point in my construction career. I would like to thank Greg for his ongoing support and mentorship throughout my apprenticeship. I would also like to thank Lyndon Mills for always being helpful with any questions I have, and always keeping me up to date on WHS. Field officer comments: During Adam’s apprenticeship he has had to work through some personal issues but to his credit has refocused and applied himself diligently to become a valued member of his host team.

Started as an apprentice: 5 February 2015 Placement history: Tagara Builders Pty Ltd, Kolen Carpenters, Boyd Carpentry Current host employer: TAK Construction

Apprentice comments Hello, my name is Billy Christie, firstly I would like to say a big thank you to Master Builders SA for the apprentice of the month award and to my past host in Kemp Carpenters and current host in Hansen Yuncken for the opportunities you have all given me. How I got to where I am today you ask? When I was a young kid I always really liked to help out around the house and garden with renovations and bits and pieces. As I got older I grew out of helping mum and dad (as you do in teenage years) but never truly lost interest in what I had done with my parents. After high school, I didn’t really know what to do with my future although I knew I wanted to be involved in the construction industry, so I enrolled with Master Builders SA to complete my Certificate IV and Diploma in Building & Construction Management. At the start of 2015 as my course came to an end, I had already decided I wanted to be a site manager. I knew there and then I did not have the experience, nor the knowledge to achieve this goal as yet. Subsequently I decided to become an apprentice carpenter to further my knowledge and practical skills, and one day will hopefully achieve this goal. Only a few short weeks ago I took another step closer to achieving this goal as I took on the position of junior site foreman with Hansen Yuncken. Field officer comments: Billy set his goals out some time ago when he started Certificate IV in Building and Construction. While still a first year he completed not only Certificate IV but also the Diploma in Building and Construction. Billy was placed with Kemp Carpenters, a long-term member and host, on day one. He immersed himself in the many aspects of maintenance and Kirk, the host, was disappointed to lose Billy when the opportunity arose to move to Hansen & Yuncken. With them he has begun to learn site management on a commercial scale, whilst still fulfilling his requirements as a Master Builders SA apprentice. Well Done Billy.

Started as an apprentice: 19 January 2015 Placement history: Liftform Pty Ltd, McCartney Carpentry, Kemp Carpenters Current host employer: Hansen & Yuncken (SA) Pty Ltd

SA BUILDER APRIL – M AY 2017

MEMBERSHIP

Introducing Mel Jarvis: your new Return to Work Coordinator and Injury Management Consultant

’ve been in the industry for five years, with experience within the self‑insured labour hire company SKILLED Group, as their Rehabilitation and Return to Work Coordinator as well as working for Return to Work SA claims agent, Gallagher Bassett, in a number of roles including project work, senior case manager and eligibility officer. My role is to assist with providing injury management advice, not only in the Workers Compensation scheme, but also CTP or personal injury management of staff to ensure that any non-work related injuries don’t become compensable aggravations from employment. I also provide ad-hoc consultancy services to non-members subscribed to the Return to Work Coordinator services. This can include once-off advice on a specific matter to ongoing management of complex claims. I provide training to Members and their staff with regard to understanding the Workers Compensation Scheme and the Return to Work Act 2014. I am an advocate for early intervention. Most injuries are expected to be resolved within the first 12 weeks. Prompt reporting, the correct treatment and a supportive employer offering suitable duties are all pivotal to make this happen. With employer assistance we can get injured workers back to work in an efficient manner, resulting in reduced premium impact to your business and a happy employee back at work. During my time at Gallagher Bassett, I was responsible for assisting the operations stream of the Scheme Reform Project by writing work instructions, creating templates, proposing ideas and making suggestions

on best business practice incorporating changes of the new legislation, and Gallagher Bassett’s new business model. This included meeting with Return to Work SA to explain what our system requirements were, and to ensure we received programs that enabled our operations staff to work effectively and efficiently. I was involved in testing the new phone claim lodgement process and provided feedback to Return to Work SA with regard to changes that were required to streamline processes. Over the past five years I have been responsible for assessing and undertaking necessary investigations to ensure that liability for claims is determined correctly, and thus have a good understanding of injuries and the mechanisms that commonly cause them. I am obviously not a doctor, but do know when to request a report or call the doctor and ask the right questions to have injuries thoroughly investigated. In my roles as a Senior Case Manager and Rehabilitation and Return to Work Coordinator, I have been involved in creating Return to Work Plans and Graduated Return to Work Schedules. This includes arranging suitable services and attending case conferences with treatment providers to ensure that an injured worker progresses through the rehabilitation of their injury as efficiently as possible, and that we achieve sustainable return to work outcomes. For further information or any questions in relation to injury management or workers compensation, please contact Mel Jarvis on 08 8211 7466 or mjarvis@mbasa.com.au

New member services staff

In line with the Association’s continuous development and service offering to members, we welcome Heather to the Member Services team. Heather Krombholz – Membership Manager Heather’s career expertise spans over 17 years in sales across various industries including commercial furniture, accounting software, waste management and construction. As the Association’s new Membership Manager, Heather will lead the membership team and strategically re-focus and drive all member benefits to ensure they meet the explicit demands of our diverse membership base.

SA BUILDER APRIL – M AY 2017

MEMBERSHIP

Entries now open online for 2017 Building Excellence Awards The Master Builders SA Building Excellence Awards (BEA) showcase and reward excellence in building and construction in the South Australian residential and commercial sectors. Taking part demonstrates a commitment to quality workmanship, and winning an award provides endless marketing opportunities and recognition as an industry leader. 2017 Entry Details Entries to the 2017 Master Builders SA Building Excellence Awards opened online on Monday 20 February 2017. A link to the online submission form is now available. The 2017 BEA Entry Guide details the full list of 2017 Award categories, category descriptions, and conditions of entry and submission requirements. It also provides members with entry and award night ticket costs. Download your BEA Entry Guide from www.mbasa.com.au Award Criteria On the website you will find the specific criteria relating to each main category in the 2017 Building Excellence Awards. These criteria will assist you in compiling your submissions as they outline what your entry will be judged on.

Categories • Commercial/Industrial • Residential – Contract • Residential – Display • Renovation & Addition • Heritage Construction (Residential/Commercial) • Specialist Contractor • Environmental & Sustainable – Residential • Environmental & Sustainable – Commercial • Work Health & Safety • Young Builder/Specialist Contractor of the Year Relevant Forms Each entry requires an authority form and statutory declaration. These forms can be found on the website and see the 2017 BEA Entry Guide for further information. • Authority Form – General • Authority Form – Sub-Contractor • Authority Form – Young Builder/Specialist Contractor of the Year • Statutory Declaration For further information regarding the Awards submission process, please contact Master Builders SA, Marketing Manager Renee Ancell at awards@mbasa.com.au or phone 08 8211 7466

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FEATURE

Creating social value through strategic infrastructure procurement

ith over $52 billion worth of infrastructure projects planned across our cities and regions in the next decade, the infrastructure sector will be a key driver of economic growth across Australia and New Zealand. The sector has the potential to create enormous social value – to reduce inequalities and improve economic participation, and social inclusion – in addition to delivering growth and productivity in our economy. Social and ethical procurement offers great potential to deliver these benefits. Social and ethical procurement can help address unique local and regional challenges and effectively respond to the Federal and State governments’ social and community development objectives. The scale of planned infrastructure projects means that sustainability impacts, both domestically and globally will be significant. As the world works collectively towards the 2030 Agenda for Sustainable Development, the infrastructure sector in Australia and New Zealand has a unique opportunity to proactively influence sustainable business practices and industry innovation. This article provides direction on how to think about and practically consider these risks and opportunities in infrastructure procurement planning. OPPORTUNITIES FOR THE INFRASTRUCTURE SECTOR The Commonwealth Budget 2016-17, announced in May 2016, commits $50 billion to infrastructure projects in Australian cities and regions over the next ten years. This investment targets roads, bridges, airports, and rail to reduce congestion in our cities, improve safety and better connect domestic and international markets. Similarly, New Zealand Treasury announced a $2.1 billion package in their 2016 Budget, to support a stronger, more productive economy and deliver better public services, including rail and tourism infrastructure. These infrastructure investments intend to create a multiplier effect by spurring jobs and national economic growth as well as the productivity of our cities and regions.

In addition to driving economic growth, large-scale infrastructure projects can create greater social value by reducing inequalities and improving social inclusion, workforce participation, living standards, and broader community wellbeing. The Productivity Commission argues that social cost-benefit analysis can show whether a project accounts for both positive and negative economic, social, and environmental impacts, and generates a net benefit to the community. Managing procurement strategically offers great potential to address sustainability impacts and create social value through public sector projects. The Federal and State governments have long realised the potential of infrastructure projects to generate community- and economywide benefits. However, value for money is a guiding principle underpinning Australian Federal Government procurement. In traditional terms, value for money (VfM) is about selecting the best option at the best price considered over an asset’s life cycle. Minimising environmental impacts and achieving greater efficiency in resource consumption is now accepted as an effective way of achieving VfM in building and maintaining an asset. As a result, much of Australia’s sustainable procurement guidance places a heavy focus on environmental impacts over the whole of life of goods and services, and the inputs of natural resources like energy, water, and materials. With the scale of planned infrastructure projects nationwide, the discussion around ‘value for stakeholders’ now needs to take centre stage to maximise positive social, economic and environmental outcomes. Value is often defined in terms of price and cost savings. In contrast, social value – from economic participation, social inclusion, community access and health and wellbeing – is often considered as additional, non-quantifiable benefit. With the scale of planned infrastructure projects nationwide, the discussion around ‘value for stakeholders’ now needs to take centre stage to maximise positive social, economic and environmental outcomes for stakeholders. Value analysis should be based on all stakeholders involved in and affected by a project or asset, weighted against the significance of the impact to them.

SA BUILDER APRIL – M AY 2017

DEFINING SOCIAL, ETHICAL AND SUSTAINABLE PROCUREMENT Strategic social and ethical procurement can enable infrastructure assets to create more social value for a wide range of stakeholders. Social Procurement is “the choice by organisations to generate social value through the inclusion of wider social objectives in their purchasing and procurement processes”. Ethical Procurement, on the other hand, ensures that organisations respect fundamental international standards on human rights and ethical conduct and makes progressive improvements to the lives of people who contribute to the supply chain. In simpler words – social procurement is about creating social and economic opportunities while ethical procurement is about risk management and good business practice. Figure 1: Conceptualising sustainable procurement

Ethical procurement Managing risks and impacts

social procurement considerations for your infrastructure project 1. Engage with Indigenous businesses and meet Federal and State government regulatory requirements. 2. Provide opportunities for commercially viable social enterprises and small medium enterprises that can generate positive social and financial benefits. 3. Provide apprenticeships and traineeships to people with disabilities, long-term unemployed and other disadvantaged groups to build skills in the community.

Environmentally responsible procurement Proactive opportunities to create social, economic and community benefit Social procurement

Source: ACCSR, October 2016

Sustainable procurement is a broader and more holistic concept that encompasses aspects of ethical, social and environmentally responsible procurement. Although many organisations have recorded whole-of-life efficiency and total cost ownership, including environmental impacts, many organisations are still in uncharted territory when it comes to addressing social impacts and promoting positive employment practices in their supply chains. Both social and ethical procurement enable organisations to better manage risks and sustainability impacts (including human rights) linked to their supply chains and take more proactive initiatives to enhance social inclusion, economic participation and community development. CREATING COMMUNITY BENEFITS THROUGH SOCIAL PROCUREMENT Social procurement can reduce exclusion of disadvantaged/marginalised populations, ensure fair access to procurement opportunities for minority businesses, small and medium enterprises (SMEs) and social enterprises, stimulate local economies by supporting local suppliers, and ensure health and safety of communities. Commonwealth and State government agencies have put in place various mechanisms to realise these benefits. They have created regulations that mandate social procurement obligations in government contracts, including requirements for Indigenous employment, apprentice training, local content and supporting minority suppliers. For many organisations, addressing social impacts and promoting positive employment practices in their supply chains is unchartered territory . In practice, ensuring social access, inclusion, and participation comes with multiple challenges. Many organisations face significant difficulties in engaging minority suppliers and ensuring that they have the right skills and capabilities to deliver the required goods and services.

SA BUILDER APRIL – M AY 2017

Local and state governments in Victoria and NSW have developed special guidance to help organisations undertake social procurement. While social procurement is not a new concept in Australia, these frameworks support more systematic integration of social value into broader procurement processes. They offer a great starting point to develop organisational culture, systems, and processes for social procurement, and to incorporate it into the general procurement life cycle. In Australia, many market intermediaries help organisations procure goods and services from diverse supplier groups. These include groups such as Social Traders, Australian Disability Enterprises (ADEs), Social Firms Australia (SoFA), Supply Nation, Australian Indigenous Minority Supplier Council (AIMSC), as well as local councils and chambers of commerce. PROMOTING GOOD BUSINESS PRACTICES THROUGH ETHICAL PROCUREMENT Ethical Procurement is about doing better business. It can help your business conduct itself a fair and ethical manner, and identify and mitigate negative social and environmental impacts in the supply chain. This may involve ensuring that supply chains uphold internationally recognised labour standards and human rights, or having mechanisms to eliminate bribery, corruption, and unlawful conduct. Ethical procurement helps you manage risks (both reputational and financial) and potential conflicts, and promote responsible business conduct throughout your value chain. Global supply chains are complex. It is challenging to gain visibility into the social (including labour and human rights), environmental and governance practices of far-away, lower-tier indirect suppliers. According to the Global Slavery Index developed by Walk-free Foundation, there are 45.8 million people in modern slavery. The largest proportion is in industries such as agriculture, construction and manufacturing. The infrastructure sector is exposed to inherent, and potentially material, sustainability risks through their supplier chains, as various goods and raw materials are increasingly sourced from developing countries. Many international frameworks can help organisations set up procurement and purchasing functions to navigate through the complexities of global supply chains. The United Nations Global

FEATURE Compact’s Supply Chain Sustainability: A Practical Guide for Continuous Improvement (2015), Buying for a Better World – A Guide to Sustainable Procurement for the UN System, and Ethical and Sustainable Procurement (2011) developed by the Chartered Institute of Purchasing & Supply are some notable examples. They all require an understanding of risks and sustainability impacts, and provide tools, scoring systems and frameworks to help address material risks at each stage of the procurement and contract management process. ADDRESSING RISKS AND OPPORTUNITIES THROUGH SUSTAINABLE PROCUREMENT Sustainable procurement in infrastructure projects requires management of adverse impacts and risks, as well as proactive ways to maximise social, environmental, and economic benefits to stakeholders. The scale and diversity of infrastructure investment by both federal and state governments means that government agencies, and typically the first tiers of their supply chain, have a unique chance to create new employment opportunities and stimulate economic growth locally, regionally, and nationally. The benefits of that growth can be maximised by ensuring employment and economic participation and access, and training and skills enhancement. At the same time, projects need to be planned, constructed, and maintained in a manner that reduces adverse social and environmental impacts across the value chain and life cycle. Therefore, what the infrastructure industry really needs is a flexible procurement framework that helps identify material risks and impacts, as well as opportunities to create social value. The industry needs to be conducive to the regulatory requirements to generate community benefits, but also responsive to unique issues and opportunities presented in each region. The new International Standards Organization (ISO) Draft Standard on Sustainable Procurement (ISO/ DIS 20400) currently provides the best guidance on how to practically integrate sustainability into the procurement process so that it captures both risks and opportunities. This Draft Standard

ethical procurement considerations for your infrastructure project 1. Establish governance systems and processes to integrate ethical standards and sustainability considerations into your organisational decision-making procurement planning. 2. Identify any negative human rights impact in your supply chain, and work with your suppliers to meet internationally recognised labour and human rights standards. 3. Understand inherent risks and implement controls that aim to eliminate any form of corruption, bribery, fraud, money laundering, obstruction of justice and undue influence through manipulation and intimidation.

encourages organisations to consider three key elements in procurement planning: sustainability risks and opportunities, sustainability aspects of business needs, and supply market’s sustainability capability. The ‘due diligence’ approach is a key element of the Standard, where organisations can identify risks or opportunities that are unique to different categories of goods and services, considering technical specifications, sourcing locations and supply chain structures. Then, identified risks and opportunities can be prioritised, based on their significance to the organisation and the project. Further opportunities can be identified by analysing the market – by understanding the capability of suppliers to support a project’s sustainability needs. If identified as a significant opportunity during the due diligence stage, market research could include local suppliers, SMEs and disadvantaged groups in the community. The Standard recognises that suppliers understand the market has changing needs and wants to offer more creative and innovative products and services to their clients. Therefore, it is important to invite a diverse range of suppliers to determine if new technologies, products or advances in sustainable business practices could meet or exceed desired business requirements. These assessments should inform a sustainable sourcing strategy that describes how to deliver the best outcome to the infrastructure project and stakeholders through procurement. Sustainability risks and opportunities can vary significantly from one product or service to another, and across different suppliers. Depending on the scale, nature, and location of infrastructure projects, sustainability specifications, could be a short one-page briefing note or considerably longer for a larger portfolio of projects and assets. BENEFIT REALISATION THROUGH GOOD SUPPLIER RELATIONSHIPS MANAGEMENT The second and most important part of sustainable procurement happens after contracts are signed with selected suppliers. This is not just about managing contracts for compliance. It is about good supplier relationships management (SRM) to ensure benefits realisation, and drive further opportunities for innovation. Investing in good SRM is key to addressing sustainability impacts and opportunities in the supply chain. Supply chains can be complex, so addressing sustainability risks undoubtedly requires the cooperation SA BUILDER APRIL – M AY 2017

steps to make a positive social impact with your next infrastructure project 1. Conduct due diligence on your infrastructure project to understand whole-of-life risks, sustainability impacts and opportunities to create social value for communities. 2. Develop a project or portfolio level procurement strategy to address material impacts and opportunities unique to your infrastructure project, based on its scale, nature and location. 3. Understand your supply market’s sustainability capability, and look for ways to include diverse suppliers in the tender process. 4. Proactively manage supplier contracts in order to improve and manage their sustainability performance, and to collaborate on further opportunities for innovation. 5. Don’t do it alone – whatever your sustainability objectives are, a collaborative approach, with your suppliers, market intermediaries or industry groups could help you get there faster.

benefits, but benefit realisation starts with good supplier relationships and collaboration across teams. It also goes without saying that strong and positive communication across all levels of a project, and amongst suppliers and wider stakeholders is also vital to success. WHY IS ALL THIS IMPORTANT NOW? The 2030 Agenda for Sustainable Development adopted by more than a 190 countries, including Australia and New Zealand, aims to end poverty, protect the planet, and ensure prosperity for all. This is a collective effort, requiring governments, businesses, and civil society to build partnerships based on shared vision and goals. Sustainability and innovation in the infrastructure sector have direct relevance to addressing our local, regional, national, and global challenges such as social exclusion, accessibility to economic opportunities. By considering these challenges during planning and design stages, and creating solutions through the different stages of their life cycles, infrastructure projects can create significant additional value through sustainable outcomes for their stakeholders. There is also an exponential rise in expectations from all stakeholders – consumers, shareholders, voters – alike for organisations to understand their place in society and create greater social value. With the infrastructure sector being an important driver of economic growth, creating and sharing social benefits will become a centre stage consideration. This has been reproduced with kind permission of the Infrastructure Sustainability Council of Australia (ISCA).

of direct (tier 1) suppliers. Organisations can invest in supply chain development programs to improve suppliers’ competence and capacity to deal with significant sustainability challenges. This can help better monitor, manage and continually improve sustainability performance over time. Collaborative, long-term supplier relationships can go a long way. More importantly, long-term relationships encourage proactivity and initiative to create further opportunities and innovative solutions that deliver greater social outcomes and sustainability standards. Suppliers that successfully meet an organisation’s sustainability and business needs can then be recognised for these contributory practices and regarded highly for future projects. Infrastructure projects have huge potential to create wider societal REFERENCES

Budget 2016-17. www.budget.gov.au/2016-17/content/glossies/jobs-growth/html/ jobs-growth-03.htm#IIAA Budget 2016. www.budget.govt.nz/budget/2016/releases/r6-english-2-1b-investment-inpublic-infrastructure.htm Productivity Commission. Australian Government. Productivity Update 2015. www.pc.gov.au/research/ongoing/productivityupdate/pc-productivityupdate-2015

Department of Planning and Community Development (DPCD), State Government of Victoria. 2010. Social Procurement: A Guide for Victorian Local Government.. www.dtpli. vic.gov.au/local-government/strengthening-councils/social-procurement Department of Finance. Procurement Connected Policies. https://www.finance.gov. au/procurement/procurement-policy-and-guidance/ buying/policy-framework/ procurement-policies/principles/

Australia and New Zealand Government Framework for Sustainable Procurement 2007, Sustainable Procurement Guide (2013) by the Department of Sustainability, Environment, Water, Population and Communities (DSEWPC).

Social Procurement – Guide for Victorian Local Government (DPCD 2010) and Social Procurement in NSW: A guide to achieving social value through public sector procurement (SPAG 2012)

Regan, Michael, “Value for money in project procurement” (2014). Faculty of Society and Design Publications. Paper 120. http://epublications.bond.edu.au/fsd_papers/120

Walk Free Foundation. The Global Slavery Index 2016. http://assets.globalslaveryindex. org/downloads/Global+Slavery+Index+2016.pdf Chartered Institute of Purchasing and Supply (CIPS). 2013. Ethical and Sustainable Procurement. https://www.cips.org/ Documents/ About%20CIPS/CIPS_Ethics_Guide_WEB.pdf

Social Procurement Action Group (SPAG). 2012. Social Procurement in NSW: A guide to Achieving Social Value through Public Sector Procurement http://knode.com.au/wpcontent/uploads/Knode_SocProcurementNSW_E1LR_90p.pdf Adapted from Chartered Institute of Purchasing & Supply (CIPS), Ethical and Sustainable Procurement (2013). https://www.cips.org/ Documents/About%20CIPS/CIPS_Ethics_ Guide_WEB.pdf

SA BUILDER APRIL – M AY 2017

The ISO/DIS 20400 Draft Guidance can be purchased from this website: www.iso.org/iso/ catalogue_detail.htm?csnumber=63026

ADVERTORIAL

What you really need to know about Polystyrene EIFS – Lightweight Cladding Systems... At Dulux® AcraTex® we’ve been designing specialist finishing systems for over three decades protecting some of Australia‘s landmark architecture and infrastructure projects. External Insulating and Finishing Systems (EIFS), long established in Europe and America are now being recognised in Australia for their benefits. WHAT EXPERIENCE TELLS US... 1. Expanded Polystyrene (EPS) requires specialist “Base Coats” to provide long term adhesion and durability. Beware of suppliers/installers using Cement Renders or even their labelled “Acrylic Renders”. Expanded foam requires a high polymer base coat for adhesion - much higher than most “Acrylic Renders”. 2. Cavity Drainage is critical in ensuring stability of the facade. This is Best Practice Design for traditional construction and is equally applicable in any Lightweight Cladding System. 3. Integration of Design, Components and Installation is required to ensure “as built” meets design specification. Lightweight Cladding Systems are able to be installed by a broader installer base (vs traditional masonry). In the BCA their use is classified as an Alternate Solution requiring validation. CodeMark™ certification is an acceptable approach, however it is important that Certification covers the full aspects of the relevant BCA requirements and that Installation is controlled to ensure full compliance.

4. Rigid, cement based renders and paint systems are unsuitable to maintain a weather-proofing envelope. Lightweight Cladding Systems (EIFS or FC) require Flexible Acrylic Texture and Elastomeric Topcoats to accommodate normal expansion and contraction. Over recent years the use of Lightweight Cladding Systems, as Alternate Solutions in the BCA, has grown but proper system design and installation has not always followed. The BCA requires appropriate design and installation controls to qualify any Alternate Solution and ultimate success

requires a total systems approach integrating Design, Componentry and Installation. The Exsulite® Thermal Facade system protects Builders from the risks of mixed componentry and uncontrolled installation. Exsulite by Dulux AcraTex offers a Single Supply Source - and critically, Installation of the CodeMark Certified System by registered and Trained Exsulite Installers.

Learn more at the new Exsulite website:

www.exsulite.com.au

SA BUILDER APRIL – M AY 2017

FEATURE

BORING

EOFY STUFF YOU SHOULD BE THINKING ABOUT NOW The end of the day, the end of the week, the end of the month, the end of the quarter, or even the end of the year. All are among the prime times to get a deal on your next new vehicle, though one of the greatest opportunities for an automotive bargain continues to present itself in the months of May and June. As the End of Financial Year (EOFY) approaches, whether you’re a smallbusiness owner or an employee, now is the time to be thinking about your vehicle, and how to make the most of it at tax-time. FOR INDIVIDUALS Claiming business use of your vehicle: If you’re an individual lodging a tax return (as opposed to a business), the EOFY is the time to look at your motoring expenses from the year, and what can be claimed as deductions in your tax return. For any motoring expense to be eligible to be claimed, the vehicle must be used, at least partially, for business or work-related activity. So how do you claim a deduction for the business-use of your vehicle? You have a choice of two methods to calculate work-related car expenses. 1. Cents per kilometre method Multiplying the number of work-related kilometres per annum by an allowance of 66 cents per kilometre up to a distance of 5,000km. 2. Logbook method Keeping a detailed travel logbook for 12 weeks (of both business and non-business usage) including car odometer readings, travel times, kilometres travelled and the reason for each journey. From this logbook, you will nominate what percentage of car use is for work purposes. From this percentage you can then claim your total car expenses as a deduction to reduce your taxable income. Make sure you keep all records and receipts of your motoring expenses throughout the year.

SA BUILDER APRIL – M AY 2017

FOR BUSINESSES Take advantage of the $20k Instant Asset Write-Off: It’s been two years now since the government announced its short-term increase to the instant asset write-off threshold, up from $1,000 to $20,000.

In the example outlined in the table below, with the tax rate now at 28.5 per cent for small businesses, our plumber will get back $5,697 from the $19,990 spent. Without the write-off he would only get back $854 this year, and have to depreciate the asset again next year.

What can be included? Work vehicles, machinery, tools and any other asset that has a limited effective life.

FOR BOTH INDIVIDUALS & BUSINESSES

$20k Asset Write-Off

Set to end on July 1, 2017, every asset purchased only needs to be ‘in use’ for one day of the financial year in order to be claimed. Any asset you buy and use before June 30 this year will be eligible to be claimed. The accelerated depreciation measure applies to all asset purchases up to the value of $20,000 for businesses that have annual revenue of up to $10 million. The scheme, which allows businesses to immediately write-off the full value of the asset, can be used multiple times and effectively reduces the amount of tax a business will pay on an asset faster. The write-off is also uncapped, meaning that there is no limit on the number of items you can claim, provided each individual item falls under the $20k limit and fits the criteria of an eligible asset. The purchase of Tools of Trade and other FBT exempt items for business owners and employees can be an effective way to buy equipment with a tax benefit. Items include handheld/portable tools of trade, computer software, notebook computers, personal electronic organisers, digital cameras, briefcases, protective clothing, and mobile phones. Obviously, the items you claim must be directly related to how your business produces income (it’s unlikely a bakery could claim equipment such as power tools that would be used by a tradesman). If the asset is worth more than $20k, you will need to use the standard depreciation method appropriate for that asset per the ATO’s guidelines. This means that you can still claim the deduction, but over a number of years, as opposed to being able to claim it all back in the one financial year, and have that money on hand to help the business grow. HOW IT AFFECTS YOUR TAX BILL With the $20k write-off, small businesses have more money in their pocket to expand and grow. For example: A plumber runs his own business, and purchases a secondhand Toyota Hilux for $19,990 for the company. With the $20k write-off now in effect, the plumber can claim the full purchase price of the car as a deduction in this year’s tax return, rather than just the amount the car can be depreciated in the first year.

SA BUILDER APRIL – M AY 2017

Cash Back Amount

So what does this mean for your business? The $20k write-off is available to all small businesses with an annual turnover of less than $10 million.

$6000 �� $5000 �� $4000 �� $3000 �� $5,697 $2000 �� $1000 �� $854 $0 �� With write-off year one

Without write-off year one

TAKE ADVANTAGE OF THE END OF FINANCIAL YEAR SALES The weeks leading up to the EOFY are a great time to buy a new car. Dealers are keen to move their stock to meet annual sales targets and clear old stock before the new financial year begins. There will be a lot of promotions and discounts in the EOFY sales, so go prepared with pre-approved finance so you can take advantage of them. You can make a good deal great by taking into account your future plans for the car and save on the overall cost of your loan. Whether you choose to add in a balloon payment to pay at the end of your lease or loan, or avoid charges like early-exit fees – to ensure you get the best overall deal in the long-run, look at more than just the lowest rate per month. By making the most of dealer sales and government initiatives, the EOFY can be a good time to get a great deal on buying a new or used vehicle. For further information contact a Stratton consultant to find out how they can help you make the most of tax time, but hurry June 30 will be here before you know it! Disclaimer: Please note that you should always refer to your accountant or a registered tax agent before taking out finance; this advice is general advice only as we are not aware of your personal circumstances. While we make every attempt to give you the best possible product information, Stratton, its agents, employees and accredited lenders will accept no responsibility for any loss that may arise.

ADVERTORIAL

Cemintel Prefinished Products are an Ideal External Lightweight System

veryone wants things more quickly these days, and in fact, they expect it! And building is not immune to these tough demands. More pressure is applied to builders to finish homes and projects more quickly but without increasing cost or comprising quality. While not a silver bullet, prefinished products can help provide some relief to this pressure, and deliver benefits to the builder via the install process. They are flexible in their application and can be used externally and internally in both residential and commercial projects. Prefinished materials are defined as materials with factory applied properties such as colour, texture and other performance attributes. Finishes of higher quality can be achieved in a factory environment as opposed to a job site.

Builders constantly work under the constraints of a client’s budget and there is a perception that prefinished products are more costly than traditional Territory // Woodlands // Smoked material options. This is where more discussion and thought needs to be attributed to prefinished materials as they deliver several benefits, one of the most attractive benefits is reduced install costs.

call backs and ongoing rectification costs if it has not been done well for things like patching up and repainting. For multi-storey buildings, there is the added cost of scaffolding which is required throughout this entire process. A prefinished product, like Cemintel’s Territory™ range with Designer Series® fixing system, can be installed by a carpenter generally in a matter of a few days. It is a unique clip fixing system that enables fast and easy installation of the lightweight panels. This fast and easy installation, along with its low maintenance and ventilated cavity system, seems to be realised more in the industry and is fuelling the growing portfolio of work where prefinished products have been used. There is now a more sophisticated range of textures and finishes available, and manufacturers are honing the production process so that tolerances for quality surfaces are improved and response times for new products are faster to meet market demands.

fire, however, legal action is now being taken against the builder by owners for multi-million dollar compensation. For an overview of this situation, download a copy of Cemintel’s White Paper – “The Real Costs of Using Non-Conforming and Non-Compliant Building Products”. Cemintel, part of the iconic CSR Building Products group, is a trusted supplier of external cladding products with several prefinished ranges available for any project. In addition to the Territory™ range which is ideal for residential and low-rise apartments, there is the new Cemintel Surround™ range. Surround is a sophisticated palette of colours and textures suitable for high end residential and commercial projects looking for something special. Barestone™ continues to be a favourite in commercial projects, and is increasing its presence in residential building. All Cemintel products are tested to ensure compliance with relevant Australian Standards, and to maintain quality standards builders’ peace of mind.

A lot of the technology for prefinished materials currently exists outside of Australia, and companies continue to grapple with competition that comes with an open market. While products imported from other countries, like China, may seem appealing initially because of promised material cost FOR MORE INFORMATION savings, caution needs to bemore takenthey require virtually With a striking range of contemporary colours What’s no ongoing when exploring products as there may PREFINISHED PRODUCTS to choose from, Cemintel maintenance. Beautiful andON simple! As an example, a rendered façade high performance, be significant costs later on. panels simulate stone, requires prefinished, bricklayers tolightweight lay the substrate, visit our website or contact in the worst caseconcrete, a brick cleaner timber, metal,totiles and smooth render. prepare the surface for the next trade us on 1300 236 468 The industry is keenly observing the who applies the texture coat, and Lacrosse Docklands apartment fire Prefinished solutions enhancing aesthetics and building performance. finally a painter to finish the job. Time is scenario where non-compliant external required for the render to cure properly lightweight cladding materials were before it can be painted, and this can used and caused fire to spread at an take 4-6 weeks. There is variability in alarming rate – 16 floors in 15 minutes. the quality of work which can lead to Fortunately, no one lost their life in the cemintel.com.au

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FEATURE

STAIRWAY INJURIES REPRESENT A LEADING CAUSE OF ACCIDENTS. The National Safety Council (NSCA) statistics rank stairway injuries second only to motor vehicle accidents among leading causes of accidents, and report that falls are the leading cause of injury-related death in adults age 65 and older.

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Each year stairway accidents cause over one million injuries and approximately 12,000 deaths. One half of those stairway deaths occur in the home. Most people underestimate the risk of falling and sustaining injuries at home, after all we feel safest at home. Statistics prove otherwise, showing the greatest risk of falling on stairs comes at home.

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Falling on flat surfaces can cause serious injuries. But falling down a flight of stairs typically causes more severe injuries. Common injuries caused by stairway falls include internal bleeding, fractured bones, brain injuries, soft-tissue injuries, and dislocations. In fact, statistics indicate falls are among the most common causes of traumatic brain injury.

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A combination of deficiencies in design, lighting, visibility and attention are usually the culprits in stairway slips, trips and falls. To help reduce these accidents in your operation, outlined below are recommendations for safer stairway design, maintenance and use. RISER AND TREAD DESIGN Research has shown that during stairway use, pedestrians view only the first and last three steps, with the rest of the stairway negotiated without looking. Therefore, design of the top three and bottom three steps is very important. More serious upper and/or lower extremity injuries occur when traveling down a stairway than when traveling up a stairway. In stairway descent, the tread depth – or horizontal surface – must be adequate for the ball of the foot to land on the tread without extending over the step below. If not, an over-step or misstep can occur, causing a fall forward. Trips and falls that occur during stairway ascent are often attributed to variation in riser, or vertical surface, height. The current recommendations for riser and tread dimensions state that: • The height and depth of stair treads must be consistent throughout each flight of stairs. AS 4226 stipulates not only the upper but also the lower limits of the riser heights; riser heights should be uniform in the range between 150 mm and 180 mm (Standards Australia, 2008). However, for elderly people or people with ambulatory problems, a rise of 95-105 mm is recommended (CSIRO, 2001). A 125mm sphere should not pass through the gaps between treads. • Tread surfaces and floor surfaces leading to the stairway should be slip-resistant. 56

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Each flight must not have more than 18 or less than 2 risers. If the stair is higher than 10m or three stories, the treads must be solid (ie. not of mesh or perforated metal). If the stair is an open stair, the riser openings must be less than 125mm. The gap between balustrade railings, whether vertical or horizontal, must be less than 125mm. Landings should be void of any raised areas or trip hazards.

STAIRWAY VISIBILITY

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Poor visibility of both risers and treads can lead to misreading the stair edge, which can cause faulty foot placement and an accident. To increase visibility: Provide visual contrast on tread nosings, or at the leading edges of treads without nosings, so that stair treads are more visible for people with low vision. Research indicates that surfaces coloured safety yellow are the “most visually detectable.” In low light areas, highlight each step using step lighting. Additional lighting guidelines are found below. Post signs calling attention to the stairway at waist height on the approaches from both directions.

A good example of why visibility matters comes from a restaurant chain that experienced a rise in general liability claims from customer slips and falls. Working with an insurance loss prevention consultant, restaurant corporate management surveyed facility conditions, including stairways, in a number of restaurants. The survey results showed that poor lighting for the stairways in the various locations was a significant exposure and that the restaurants needed maintenance programs for tread conditions and secure handrails. Based on the survey results, the company reduced their slip-and-fall risk by adhering reflective safety tape to all stair treads and installing track lighting and stair riser lights wherever possible. Additionally, each restaurant instituted a self-audit program to maintain appropriate safety goals and added a stair condition checkpoint to the outside food inspector’s audit form. In the seven months following these actions, the restaurant group has experienced only two falls on stairs. STAIR RAILS AND HANDRAILS Stair rails and handrails are needed for very different purposes. Stair rails, or stair guardrails, protect pedestrians from falling off the edge of the stairs or landings while handrails help pedestrians keep their balance and provide leverage when ascending/descending stairs.

SA BUILDER APRIL – M AY 2017

The Australian Standards requirements for the design and construction of handrails are as follows: • Handrails shall be circular, between 30 and 50mm in diameter for not less than 270 around the uppermost surface. • All exposed edges of handrails shall have a radius of not less than 5mm. • The top of handrails shall be between 865 and 1000 mm above the nosing of the tread or the plane of the finished floor of the walkway or ramp. • The height of the top of the handrail shall be consistent through the ramp (or stairs) and any landings. • Where a balustrade is required at a height greater than 1000 mm, a handrail shall also be provided. • (Handrails and balustrades shall not encroach into required circulation spaces. • Handrails shall be securely fixed and rigid, and their ends shall be returned away to a side wall, or turned downwards through an angle of 180 • The clearance between a handrail and an adjacent wall surface or other obstruction shall be not less than 50 mm. This clearance shall extend above the top of the handrail by not less than 600 mm. • Handrails shall be constructed and fixed so that there is no obstruction to the passage of a hand along the rail. • The fastenings and the materials and construction of handrails shall be able to withstand forces, in accordance with AS1170.1. GRABRAILS The requirements for the design and construction of grabrails are as follows: • Grabrails shall be between 30 and 40 mm in diameter, or they shall have sectional shape within these limits. • All exposed edges of handrails shall have a radius of not less than 5 mm. • The fastenings and the materials and construction of grabrails shall be able to withstand a force of 1100 N applied at any position and in any direction, without showing any visible signs of deformation or loosening of the fastening. • Unless otherwise specified, the clearance between a grabrail and the adjacent wall surface or any other obstruction shall be between 50 mm and 60 mm. This clearance shall extend above the top of the grabrail by not less than 600 mm. • Grabrails shall be fixed so that there is no obstruction to the passage of the hand along the top 270 of the rail. • Grabrails shall not rotate in their fittings. ADEQUATE LIGHTING As people descend a stairway, the floor below and the treads are in their line of sight, but the risers are not. Therefore, the top safety priority is to make the treads more visible through contrasting nosings and adequate lighting. Install at least 20 foot-candles (200 lux) of local spot or floodlight illumination to highlight the stairway and the floor approaching it on both levels. Measure the illumination at the applicable floor or stair tread surface. Make sure the edge of each tread is properly illuminated, and aim the lighting so that shadows are not cast on the stairway and glare does not disrupt the vision of those approaching the stairway. Ensure that stairways are lit at all times. Back-up power is especially critical for stairway lighting. SHORT STAIRWAYS A significant number of “air step” falls – stepping off the top of a stairway into air – occur on low stairways that consist of one, two or three steps. In effect, people step off into thin air, not having seen the stair or stairs at all. Commonly found inside public buildings such as hotels and restaurants, “air step” falls occur because people fail to perceive the modest change in floor level and are usually the most serious accidents on low stairways. SA BUILDER APRIL – M AY 2017

Tripping also is a hazard, especially when people don’t notice the stairway as they approach from the lower level. Though failure to detect the presence of low stairways is the biggest reason for such falls, inadequate stair dimensions, missing railings, improper railing heights and poor lighting also are contributing factors. If it is feasible from an operational and a financial standpoint, consider the following for low stairways: • Change the stairway approach path to require people to slow down and turn about 1.5 to 3 metres before reaching the stairway. This type of approach makes it more likely that people will notice the stairway. • Use railings and other assistive fixtures to achieve a right angle or oblique turn. • Remodel the stairway into a ramp. • Visually contrast the leading edge of each step using safety yellow. MAINTENANCE AND USE Many stairway accidents occur due to poor maintenance, inattention and use. Keep stair treads clean and in good condition. There should be no excessive wear, missing treads or loose treads. Carpeted stairs should be in good condition with no noticeable deterioration. Never use stairs for storing objects. Do not carry items in the hands on stairs, and do not rush up or down stairs. Finally, address importance of stair safety in employee safety training sessions. The council’s data also shows that incidents of falls start to steadily increase when people reach 40, which is a significant concern for employers given the trend in employees working long beyond traditional retirement age. Therefore, designers, builders, owners and employers should take the necessary steps to reduce risk as much as possible. The NSCA Foundation can review your existing systems, workplace environment and/or investigate an incident on your behalf to provide advice on compliance and the strategy to address gaps in your OHS/ WHS management. Being prepared and knowing where you stand if things do go wrong is critical. The NSCA Foundation can provide privileged and confidential expert witness and legal services for or against any business or legal organisation/representative. 57

ADVERTORIAL

Australian Building Products Predicament The recent Senate Economics Committee inquiry into nonconforming building products noted a serious breakdown in the regulation and oversight of both non-conforming and non-compliant building products in the Australian building and construction industry. Australian Building Products have long been the cornerstone of a respected service to support our vibrant national building industry. Unfortunately, of recent times, the balance of community interests and commercial endeavour has become clouded and replaced by a concentration on volume and low product cost rather than undiminished value to the ultimate building owner and the community. This predicament applies not only to building products in general but more particularly to galvanised steel lintels which have seen an influx of imported steel product that lacks compliance and conformity to Australian Standards and the Building Code of Australia (BCA). Principle matters of concern include: • Widespread disregard for the Building Code and its referenced engineering practice and standards. • Neglect of the use of standards first noted in private buildings is now increasingly in public works. • Premature in-service failures of non-conforming products. • Reported reluctance on the part of insurers to pay-out on claims. • Failure to find a responsible Authority for enforcement and final certification. • Inconsistencies in product quality relating to the grade of steel used and coating thickness on galvanised steel lintels.

Galintel® from NEPEAN Building and Infrastructure, a local manufacturer of galvanised steel lintels, shares these concerns on non-compliance of building products and more particularly on galvanised steel lintels. “Our complete Galintel® range is manufactured and tested to meet Australian Standards and is compliant with the Building Code of Australia,” said Robert Watters, General Manager of Galintel®. “As a result, we warrant our products for 25-years. Others may claim similar performance but, as the only local manufacturer of galvanised steel lintels, we know the necessary testing has been done to enable us to present load tables that meet standards and compliance.” “Following the recent Senate Economics Committee inquiry into non-conforming building products, Nepean Building and Infrastructure joins the local building materials manufacturers in calling on all parties to take action on non-conforming building products,” said Mr Watters.

It is important to bear in mind that steel built into masonry, such as lintels, serves several purposes but in particular provides reinforcing which is self-evidently necessary to ensure the integrity of the entire building structure. The most common deficiencies of non-compliant galvanised steel lintels include: • Failure to meet those suppliers’ published engineering load tables. • Lack of the required manufacturer’s compliance information for verification purposes. • Availability of the required manufacturing data, either minimum sampling and testing records or a product certification scheme as a record of Acceptable Quality Level (AQL) production. This certification is required by the relevant Australian Standards.

FOR MORE INFORMATION ON THE GALINTEL® RANGE OF CONFORMING PRODUCTS, PLEASE VISIT WWW.GALINTEL.COM.AU OR EMAIL GALINTEL@NEPEAN.COM OR CALL 1800 LINTEL (1800 546 835).

not all galvanised steel lintels are galintel

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RENDABAR®

there’s only one Galintel® brand galvanised steel lintel and that’s the range that has been made here in Australia by nepean for over 40 years.

MULTI-RIB T-BAR

Many suppliers call their products galintels but there’s only one genuine GALINTEL® brand galvanised steel lintel available in Australia. GALINTEL® brand lintels are only manufactured by NEPEAN Building & Infrastructure and are fully tested to meet Australian standards. Made using 100% Australian made steel from BlueScope, the GALINTEL® range is competitively priced and comes with a 25 year warranty backed by NEPEAN.

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build with confidence. look for the genuine Galintel® range.

galintel.com.au 1800 lintel (1800 546 835) The full range of Galintel® galvanised steel lintels is available from Bianco visit www.bianco.com.au or call 1300 bianco (1300 242 626)

ADVERTORIAL

BUILDING SITE CRIME IS ON THE INCREASE

uilding site crime is already a major problem, but the bad news is that it is steadily increasing. Direct losses are costing the building trade tens of millions of dollars each year, while the hidden costs include the delays that theft can cause; having to wait for reordered materials to arrive can put a project back by many months, and this is far costlier than the replacement of stolen or vandalized equipment. Insurance companies don’t want to pay for these losses either. So they have to be covered by the main contractor.

if key personal are on site without having the considerable expense of having to drive between sites to check physically.

Traditional methods of securing building sites, like patrols and guards can be prohibitively expensive and they are only effective while there is a presence on site. Patrols in particular, are on site for very short periods of time each night, leaving sites mostly unprotected.

Spectur cameras use their own sophisticated algorithms running through powerful internal computers to detect specific types of motion. Extraneous triggers can be excluded so that only genuine activity is picked up.

Site crime obviously takes many forms; theft is only part of the problem. Short deliveries, contractors arriving late or leaving early, can also add substantial costs to a project.

Workday Security The Spectur system is a 24/7 solution. During the day the high-definition cameras record all activity, effectively providing a verifiable record of what has happened on site. If there is a dispute regarding a delivery or with a contractors hours, the recordings offer a “no quibble” record of events. In addition to the daytime recordings, one can use Spectur’s ‘Live Viewing’ capabilities to see what is happening on site in real time. Multiple cameras, on multiple sites can be linked to a single secure login so that the viewer can easily switch between cameras to see what is happening in real time. A quick browse through multiple cameras at the start of a workday will let you know immediately

Night Time Security At night the system automatically switches to ‘Alarm’ mode. This is done from an automated schedule that Spectur will set up. Once the cameras are armed, it’s like having a full time security guard on site, but at the fraction of the cost.

When activity is detected a loud, verbal warning a played, warning the intruder that they are being watched, filmed and reported to security and the police who are about to attend. A large 50w LED light is triggered at the same time. The combination of the audio and bright white light is a very powerful deterrent. In most cases this gets the unwanted visitors offsite immediately. The recorded footage is immediately sent to Specturs secure cloud servers and alerts are sent directly to the client or to n AA Grade monitoring station. Spectur have an enviable record at completely preventing crime on the majority of sites they cover.

Time Lapse Recording In addition to the Spectur systems security features, there is also a powerful ‘Time Lapse’ function. This allows you to take HD images at a set interval that can be stored on secure Spectur servers for retrieval at any time. There is no storage limit and years’ worth of images can be stored safely.

Powerful Management Features The Spectur systems run on their powerful cloud architecture. This gives Spectur the power to manage all aspects of their systems remotely. Everything from battery usage, 3G strength, camera parameters and reliability reports are looked at as part of the package. These management systems offer a very high degree of reliability and control.

Australian designed and built The Spectur system is 100 per cent Australian designed and built, and close to 1000 cameras are already active in the field around Australia. This has given Spectur millions of hours of camera time that equates to a thoroughly tried and tested, reliable technology. Spectur are the acknowledged experts in the solar security sector.

Prevention is the Best Option Spectur believe that deterring crime is a far better tactic than just recording it. ‘After the event’ recordings still leave the operator with the problem of replacing stolen materials, and given the fact that the police are spread very thinly in most areas, the likelihood of them investigating site crime is very low.

If you would like more information about Specturs technology visit: www.spectur.com.au or call them on 1300 802 960

Secure Your Sites Without Expensive Patrols or Guards. We stop crime in its tracks! Just ask any of our hundreds of customers.

A GROUND BREAKING SOLUTION THAT WILL SAVE YOU TIME AND MONEY Site crime can happen during the working day or night. Our systems are working to protect your site 24/7.

Solar Powered 3G/4G Security

Live Surveillance & Intruder Warnings

Because we have designed our system to be a completely stand alone solution, you don’t have to worry about wiring, laying power or digging trenches. Just mount the system and plug in the systems battery. Simple to install and just as simple to move around.

The combination of live cameras, reporting immediately an intruder is detected, powerful LED lights and a spoken warning, gets criminals oﬀ site BEFORE they commit crimes that can cause costly delays and losses to your schedule.

Time Lapse

Daytime Recording

Access your time lapsed video remotely or choose Live View to get updates as they happen safely stored to Spectur’s secure servers. You can alter how you view back your video, changing the image quality, frame rate, or the capture schedule where you see �t.

You see what’s happening through the day when you login to you cameras, but we are also recording all activity as well. So if you need to see what time your contractors leave the site, or when a delivery was made, it’s all there. Stored on our secure cloud servers.

Call: 1300 802 960 | Visit: www.SPECTUR.com.au

ADVERTORIAL

AUSTRALIA’S HIGH RISERS DRIVE AIR CONDITIONING INNOVATION TRENDS IN THE RESIDENTIAL PROPERTY MARKET CONTINUE TO DRIVE INNOVATIONS IN THE AIR CONDITIONING INDUSTRY. A prime example is the increasing demand for more lightweight, compact and well-designed units that are better suited to high rise apartment living in Australia’s capital cities. Apartment living is a lifestyle choice for those who prefer the bigcity vibe and proximity to work, social and entertainment activities, not to mention the benefits of communal on-site facilities such as a gym, pool and concierge. Two thirds of Australians already live in capital cities, according to the Australian Bureau of Statistics (ABS), and this ratio is set to trend towards urban as future generations flock to the main centres. ABS figures also show that by 2030 the most common dwelling units will be childless couples and single person households. This lifestyle shift has been accompanied by a preference for homes with high-end design that optimise limited space. “When it comes to apartments, bigger doesn’t always mean better,” according to Asher Judah, Victorian acting executive director of the Property Council of Australia. “Good quality is all about how the space is used,” he said, adding that the majority of apartments built over the last decade have, for the most part, been of high quality. For suppliers this means ensuring products for this segment of the market are well designed. One company that has a distinct advantage over competitors when it comes to design for highdensity living is Daikin. The leading air conditioning manufacturer is one of the few businesses that has managed to stay ahead of the pack by releasing products specifically to meet the new residential dynamics.

Daikin’s national VRV manager Simon Langstaff said the company foresaw the growing preference for apartment living in Australia, and created products to suit out of its $550 million per year global research and development program. Its’ newest VRV IV S series is compact, lightweight and aesthetically pleasing, yet powerful - making it ideal for high-end apartments. In addition, the Daikin FXDQ compact series can actually fit in the bulkheads above built-in wardrobes and cupboards. “These bulkhead indoor units have a depth of just 450mm and height of only 200mm, which is ideal for drop ceilings and wardrobes,” Langstaff said. “They are compact enough to fit above the wardrobe and still allow for plenty of air flow behind the units.” Just last year Daikin released its entire VRV IV S series, offering an extended range of outdoor units from 9kW through to 24kW and the FXDQ compact bulkhead series specifically for high rise apartments, offering a range from 2.2kW to 7.1kW. An advantage that Daikin has over competitors is that the company can design and manufacture its residential ducted range right here in Sydney. “Another key differentiator that sets Daikin apart is that we can design each product range to meet the specific requirements of the market, and we can do it locally,” he said. “Most VRV units can now be connected to our residential range, so we can meet the demand for larger multi type product to be used in high end housing.”

For more information on Daikin products

visit: commercial.daikin.com.au

SA BUILDER APRIL – M AY 2017

THE NEXT GENERATION VRV IV-S SYSTEM FIRST LAUNCHED IN JAPAN IN 1982, THE DAIKIN VRV SYSTEM HAS BEEN EMBRACED BY WORLD MARKETS FOR OVER 30 YEARS. The slim compact design offers improved energy savings, comfort and can be connected to a range of domestic indoor units, with outdoor units measuring as low as 990mm in height* for ease of installation. VRV IV-S capacity ranges from 9kW to 24kW to meet an even wider variety of needs.

Find out more today. Visit commercial.daikin.com.au or call us on 1300 368 300

*Applies to 9, 11.2 and 14kW models

WHAT’S NEW

ADVERTISERS DIRECTORY AG O’Connor Pty Ltd

Air Con Serve Pty Ltd

Beams Software Cemintel

Pre-assembled Load Centre Customised, pre-assembled Resi MAX system is ready to install Why choose the Resi MAX Pre-assembled Load Centre? • Configure the load centre specifically for your customers from our extensive range of systems • A residential circuit protection system in one complete solution • Reduce installation time on site • You’re fully covered without the worry of missing components • Add Wiser Link to connect your customers to their electricity, gas, solar, and water use anywhere, anytime. Achieve points for multi-unit residential green building accreditations. • Perfect for multi-dwelling projects Order today* • Contact your local wholesaler representative for your configurator form • Select your plastic switchboard • Configure it with a wide range of circuit protection • Upgrade your Load Centre with our Residential Energy Management Solution • Send to your local wholesaler representative • Await your quick quote

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Construction Industry Training Board Daikin Australia

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Master Builders Australia

MBA Insurance Services Pty Ltd

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Nepean Building & Infrastructure

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Rawlhouse Publishing

Renault

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Schneider Electric

Spectur

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Stillwell Ford

Toyota Motor Corporation Australia Limited

Once approved, your order will be on its way. *Minimum order 50 pre-assembled load centres.

For more information: Website: www.clipsal.com/PALC

SA BUILDER APRIL – M AY 2017

A UTE IS A UTE, RIGHT? Wheels, motor, seats, they’re all the same, aren’t they? If you walk into two dealerships and ask for a ‘ute’ would you take the cheapest one? Or would you compare the tray, fuel type, transmission, air-conditioning, warranty, capped priced servicing, build quality? Without all the specifications, you aren’t able to make an informed decision about which ute represents the best value.

Construction insurance is no different. It has conditions, exclusions, clauses and definitions and these can be significantly different from one insurer to the next. We can help you get the best value for money because we are the construction insurance specialists.

Our business is built on advice.

Quenten Watkins

South Australian State Manager MBA Insurance Services

profits nce broker delivering ra su in ly on e th is IS MBA dustry. ilding & construction in bu e th to ck ba y tl ec dir