Master Builder Victoria November-December 2016

MASTER BUILDERS ASSOCIATION OF VICTORIA NOVEMBER - DECEMBER 2016 VOLUME 71 ISSUE 05

HOME RUNS:

Print Post Publication No. 100008007

THE 2016 EXCELLENCE IN HOUSING AWARDS

Changing of the guard: President Peter Picking moves on p.8 The missing link: affordability and better apartments p.12 An ounce of prevention: the facts on cyber insurance p.20

Building Australia Master Builders Australia

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

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

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

Supplied by Mona 2011 National Awards

Image: Hobart City Council

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

Image: Jesse Dejardins

Michael Walters Photography

Image: Paul Fleming

Image: Alastair Bett

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Image: Andrew Ross

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Discover Tasmania

Alastair Bett

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

Master Builder Victoria

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A WORD FROM THE EDITOR

Domestic concerns It’s something of a tradition for all things house and home to take centre stage in the November-December issue of Master Builder, and there’s really no mystery as to why. We have just completed the 2016 Excellence in Housing Awards, which concluded with another spectacular show at Crown Palladium. We congratulate Capel Constructions on submitting the winning project of a Mornington residence, which earned them the title of Builder of the Year. Kudos as well go to Hedger Constructions and David Moyle for winning Regional Builder of the Year (Residential) and Young Builder of the year, respectively.

But spectacle doesn’t begin and end with the shiny, new houses reviewed in this program (appearing here starting on page 15).

A scan of the Melbourne horizon reveals apartment towers multiplying like rabbits. Of the many topics for which Master Builders advocates on your behalf, two are housing affordability and a strategic and sustainable approach to the planning approvals process, we take a great interest in the government’s move to create legislation to build “better” apartments.

CEO Radley de Silva responds to this movement, noting that healthy living environments are indeed a good thing, but also citing Master Builders’ concerns about how the government’s recommendations—including things like mandatory minimums for setbacks, storage areas, landscaping and daylight would affect the costs of building apartments and stifle creative design. You can read Radley’s take on this hot topic on page 12.

On the legal front, as of 12 November this year Section 23 of Australian Consumer Law extends protection against unfair contract terms in standard form consumer contracts to small business, and solicitor Tristan Moseley discusses this on page 26.

Do you know what cyber insurance is? Me neither, until I read MBAIS State Manager Victoria Joe Keiper’s explanation on page 20. If, like nearly all of us, you collect and share information electronically, you’d be well advised to have a read. It’s good to know you may have recourse if digital disaster strikes.

Until next time, have a great holiday season.

Peter Sackett Editor

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Master Builder Victoria

CONTENTS

FOREWORDS

FEATURES

A WORD FROM THE EDITOR

1

FROM RADLEY DE SILVA

PRESIDENT’S FOREWORD

4

Affordability overlooked in the Government’s apartment standards

GUEST FOREWORD

8

2016 EXCELLENCE IN HOUSING AWARDS

The Hon Daniel Andrews MP Premier

MEMBERSHIP 12

MEMBERSHIP PROFILE

38

Australian Builders Network

15

INSURANCE 20

VALUE OF MEMBERSHIP

39

MEMBER MILESTONES

41

NEW MEMBERS

43

Cyber Insurance: the basics

REGULARS

GREEN LIVING

22

GENERAL FEATURES

NEWS ROUND-UP

10

An active few months for the sustainability team

CASE STUDY CONSTRUCTION

33

FINANCIAL SERVICES

REGIONAL ROUND-UP

34

Options with finance

Green technology: what does it mean for the construction industry?

SOCIAL PAGES

36

LEGAL 26

ROOFING 50

WHAT’S NEW

59

DIRECTORY 60

24

Fair’s fair – Consumer protections now benefit small businesses

OHS 28 Avoiding the avoidable

TRAINING 30 Diploma or Certificate: which qualification is for you?

TECHNOLOGY 46

New trends in residential metal roofing

HIRE 52 What is an ‘indemnity’ and when is a hire business likely to come across one?

PROJECT FEATURE

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Kane Constructions

MASTER BUILDERS ASSOCIATION OF VICTORIA 332 Albert Street, East Melbourne VIC 3002 Tel: (03) 9411 4555 Fax: (03) 9411 4591 Email: mbassist@mbav.com.au www.mbav.com.au Master Builder is the official journal of the Master Builders Association of Victoria, which was established in 1875 and is one of the state’s oldest employer organisations. The organisation is part of the Australia-wide Master Builder movement. The keynote is service: and Master Builder is produced in line with this objective of keeping all members informed of all matters affecting them. Membership of the Master Builders is open to all qualified business operatives in the building and construction industry; the basis of membership is integrity and competence, based on training and experience.

BOARD OF MANAGEMENT: Peter Picking (President) Melanie Fasham (Deputy President) Greg Zuccala (Immediate Past President) Richard Hansen (Treasurer) Jarrod Sanfilippo, Michael Clemenger, David Moyle, Neil Grenfell, Ian Hawkey, Hedley Davis (Board Observer)

COUNCIL OF MANAGEMENT: Peter Picking (President Melanie Fasham (Deputy President) Greg Zuccala (Immediate Past President) Richard Hansen (Treasurer) Michael Clemenger, Ashley Levin, Jarrod Sanfilippo, Geoff Purcell, Tom Basel, Lindsay Barber, Claude Salvatore, Michael Cameron, Natalie King, David Moyle, Phil Robinson, Brendan Liddle, Ben Rogan, Ian Hawkey, Paul Gardiner, Joe Cumbo, Neil Grenfell, Adam Barron CEO: Radley de Silva, 9411 4501 General Manager, Commercial Services: Viviana Hood, 9411 4516 General Manager Member Services: Lawrie Cross, 9411 4582 General Manager , BLSC: Marc Lyons, 9411 8001 General Manager Marketing, Policy and Communications: Leanne Edwards, 9411 4515 MANAGERS: Head of Membership: Dom Butera, 9411 4598 Head of Legal: Angelo Simonetto, 9411 4593 Head of Industrial Relations: Daniel Hodges, 9411 4562 Head of OHS: John Darcy, 9411 4521 Head of Training: Corrie Williams, 9411 4544 State Manager Victoria/MBA Insurance Services: Joe Keiper, 9411 4504 Head of Sales, Events and Sponsorship: Tony Biffaro, 9411 4557 Head of Finance: Ron Joordens, 9411 4556 Head of Human Resources: Steven Hogan, 9411 4540 Sponsorship and Alliance Manager: Danielle Penna, 9411 4551 Head of Business Development and Strategic Projects: Julie-Anne Sheppard, 9411 8000 Magazine Editor: Peter Sackett, 9411 4534

PUBLISHED BY

Tel: 1800 222 757 Fax: 1800 063 151 Email: publications@crowtherblayne.com.au Advertising sales: Paul Baird, Rose Delosreyes, Scott Sharples, Vivianne Reiss Tel: 1800 222 757 Email: paulb@crowtherblayne.com.au Managing Editor: Trish Riley Production: Lynda Keys Tel: 1800 222 757 Email: lynda.keys@crowtherblayne.com.au Graphic Design Team: Andrew Crabb, Michelle Triana, Danny McGirr Print: Newstyle Printing Distribution: adelaide business bureaux Disclaimer: The Publisher and the Master Builders Association of Victoria, their employees and agents take no responsibility for any inaccuracies or omissions. The opinions are those of the contributors and not necessarily of the Publishers nor of the Association. No warranty is given and no liability is accepted. Products and Services appearing in Master Builder are not necessarily endorsed by the Publisher or the Association.

While every care has been taken during production, the publisher(s) do not accept any liability for errors or omissions that may have occurred.

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Master Builder Victoria

PRESIDENT’S FOREWORD

Parting words Master Builders Association of Victoria has a 141-year history of representing builders, suppliers, apprentices and stakeholders across Victoria’s building and construction sector, with the purpose of bettering the industry and the community.

As I reflect on the two years of my presidency, my dominant observation is that the size and diversity of this industry is grossly underestimated – initially by me, often by our members and certainly by the community and our stakeholders.

With 120 staff at Master Builders, delivering products and services to members across the state (in Melbourne and in seven regional offices) – the staff certainly understands the sector’s size and complexity as they travel the state to service our members.

The Board and staff of Master Builders travel diligently, participating in more than 50 events each year, including member nights, section meetings, awards nights and roadshows. I’ve been fortunate to attend several of the regional events; the passion and camaraderie displayed by members has been a pleasure to observe. The actions of the staff ensure that all members have access to information about the industry, and also that members’ building work can be showcased. The Excellence in Construction Awards events showcase achievement from each region.

The apprentice awards also highlight upcoming talent, a particularly pleasing aspect of which is the increased influence of women in our workforce.

Master Builders has distinguished itself as a leader in the delivery of vocational education, being awarded the distinction of 2016 Victorian Small Training Provider of the Year. The quality of the training that Master Builders provides, and high student-satisfaction rates, are just some of the reasons Master Builders is so deserving of this award.

Enhancing vocational education training with immersive, real-life experiences is special to Master Builders, and made possible through the development of the Building Leadership Simulation Centre (BLSC) in South Melbourne.

The centre is a truly remarkable facility for the Australian industry – one of only three in the world and the only one of its kind in the Southern Hemisphere. The BLSC allows education in an unrivalled teaching environment, with realtime scenarios that take place in industry-accurate stateof-the-art surroundings, including actors playing parts, a 15-metre-wide parabolic projection screen and 12 site sheds

that place students in the middle of the action. I am also happy to report that the BLSC and RMIT shared the Victorian Industry Collaboration Award with Metricon this year, presented for exemplary skills development between and employers and other organisations.

Master Builders provides free IR advice during the year and has represented members in negotiations with the CFMEU since the industry EBA agreement reached its nominal expiry date in March 2015. In August 2015, we released a report by Deloitte Access Economics, Victorian Construction – Labour Costs and Productivity, which highlighted that construction industry EBA wages have been growing at unsustainably high rates. We subsequently released an updated report in May 2016. This approach to identifying the escalating costs in commercial construction has been influential in setting the national agenda and is currently changing the mindset of the community about the costs of CFMEU industry EBA agreements.

Master Builders has unprecedented access to both major political parties, with regular meetings and dialogue on the issues of importance for the sector and the community. The implementation of the building legislation changes in 2016, with important tightening of the owner-builder laws, saw a successful outcome to many years of lobbying to stamp out work being done by unqualified people. The lobbying on important issues continues, and, whilst we haven’t yet achieved universal trades registration in Victoria, we are continuing to influence government on this issue and hope to see a positive outcome in the foreseeable future.

If it weren’t for the enthusiasm and commitment of our members, we wouldn’t obtain the necessary feedback and assistance in developing policy and operational priorities for the association. Our Sector Committee members must take time out of their busy working schedules to meet approximately ten times a year to discuss and evolve the operations of the association. Without those efforts, we would be unable to achieve the impact and influence that Master Builders is known for.

Thank you to our Master Builders members, committee members, staff, sponsors and alliance partners for your tireless efforts and contributions – contributing over the last two financial years to record profits, and allowing Master Builders to invest back into our member services, incredible facilities and operations.

The importance of the building and construction sector to the Victorian economy and community should not be underestimated. Our industry is the second-largest full-time employer in the state and delivers more than 40 per cent of taxation revenues to the government. With Victoria’s population growing by almost 2000 people every

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Master Builder Victoria

PRESIDENT’S FOREWORD

week, our sector must deliver the houses, roads, schools, hospitals, public transport and aged-care facilities needed to maintain the excellent living standards that Victorians expect and deserve.

There are challenges ahead, and both Master Builders and the industry must be nimble enough to embrace new technologies, innovation and diversity. The growing involvement of women in our association reflects the evolution of our industry; technologies such as 3D printing are set to revolutionise our work; the ever-changing face of our commercial sector and the investment of offshore companies will all influence the sector in the coming years.

I’m on the record as saying that we are good at what we do and that we need to celebrate our successes as they arise. Please continue to implement this philosophy in all that you do.

I have worked closely with Melanie Fasham during my term and I am delighted to be handing the Presidency to her. Melanie not only represents generations of Master Builders who are contributing to our sector, but also represents the evolution, growth and professionalism of the association she will lead.

I know that I am leaving the association in the capable hands of the Council, Board, Committees and staff. This gives me faith that it will have a very bright future, and that it has the ability to continue to support and influence the industry and the Victorian community.

Peter Picking President

It has been an honour and a privilege to work with such a professional executive and board and I thank them for their support and guidance over the past two years.

Outgoing President Peter Picking handing the baton to incoming President, Melanie Fasham

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Master Builder Victoria

GUEST FOREWORD

Message from the Premier It’s been a huge year for the building and construction industry here in Victoria: the State of Momentum.

Our 2016-17 State Budget provided a record $12.3 billion investment in infrastructure – creating more than 15,000 jobs in the short term, and boosting our economy in the long term.

We’re building Australia’s biggest public transport project: the Metro Tunnel, a 9km-long rail tunnel under the CBD to join up our busiest rail lines and unlock the crowded City Loop.

We’re also removing 50 of our most dangerous and congested level crossings, building a second river crossing in the Western Distributor, and upgrading the local roads that people use every day.

These projects will, in turn, help our newer suburbs become even better places to live – which will encourage more construction and more work for your members. Building approvals are growing. They increased by 28 per cent over the year to August 2016. The number of dwelling unit approvals increased by 14.7 per cent.

We’ve worked closely with the building industry to ensure strong protection for consumers and ensure certainty for investors and industry. Our draft apartment design standards and our proposed new planning controls will enhance our world-renowned reputation for liveability, and they will deliver more consistency and certainty.

We’ll keep working together as we refresh Plan Melbourne, review residential zones and make the planning system simpler and more accessible for businesses, local government and the community.

We in the Victorian Government consider Master Builders Association of Victoria a key partner in our state’s growth, success and liveability.

Our record infrastructure investment is not limited to transport. Our Budget provided $924 million for new and upgraded schools, and $817 million in new and upgraded hospitals and health facilities.

I want to thank you for providing a voice to your 9,000-plus members in the building and construction industry, and I look forward to more good news in 2017.

It makes me proud that so many more Victorians are able to head off to work across our state and bring to life the schools, hospitals, roads and public transport projects that we need.

The Hon Daniel Andrews MP Premier

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Master Builder Victoria

Have you heard about Building Victoria? Visit www.mbavnews.com.au for up

Master Builders at WorldSkills Australia Master Builders’ ALink team attended the 2016 WorldSkills Australia National Competition, hosted in Melbourne 6 - 8 October at the Melbourne Showgrounds.

design, baking and healthcare. The building industry is represented through thirteen trades including carpentry, bricklaying, joinery, landscape construction and plastering.

WorldSkills Australia celebrates the opportunities offered by skill-based careers, with a competitive program building over a three-year cycle.

Regional competitions take place in year one, followed by a national competition in year two, culminating in an international competition in year three.

Master Builders hosted a Try-aSkill stand in the Carpentry Hall, providing the opportunity to witness firsthand the dedication and commitment competitors apply to the competition. Master Builders promoted opportunities in the building industry to secondary school students, apprentices, teachers, parents and adults considering a career change.

Enthusiastic attendees tried their hand at building a timber pencil-box under the supervision of the ALink team.

The National Competition involves over 500 apprentices, trainees and students competing in 60 skill areas. WorldSkills Australia then nominates the categories to represent Australia at the 44th WorldSkills International Competition to be held in Abu Dhabi, UAE in 2017.

Competitions are aligned to National Training Packages, including a wide variety of trades such as automotive mechanics, hospitality, game and web

A distinct community atmosphere flowed through the competition halls.

The contribution by competitors, judges, families, TAFEs and RTOs, sponsors and event organisers, as well as over 370 volunteers, was on a scale Master Builders has not witnessed

before. Over 40,000 attendees visited the competition, providing spirited energy across the three days.

There’s even a possibility of the ALink team being TV personalities. Better Homes and Gardens visited and filmed at the Master Builders stand and even tried out the hands-on carpentry activities.

Participation in this impressive event offered Master Builders the opportunity to demonstrate its commitment to high standards in the industry and foster loyalty with the next generation of Australia’s skilled workforce. It was an impressive event, well worth attending.

See all the winners at www.worldskills. org.au/results-2016-worldskills-australianational-competition

Contact: ALink & Master Builders Careers team Phone: (03) 9411 4555

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to the minute news and info from the building and construction industry, 24/7

Building approvals take a dip Monthly data for new dwelling approvals released by the ABS shows that approvals of both new houses and units saw a month-on-month decline in September. The total number of new dwellings approved measured approximately 5,300, which is about 850 – or 14 per cent – fewer than were approved in September 2015. This halts a strong run of increased approvals through the first eight months of the year, particularly for units.

The dip in approvals of new units was particularly stark. Some 2,176 units were approved in September 2016, down 300 on August and 83 on September 2015. This decline was driven primarily by fewer approvals of larger apartment developments of four storeys or more, which declined by almost 500 units from the previous month and was down 24 per cent on the average of the past two years. However, this is a volatile segment of the market and can fluctuate significantly month-to-month.

Meanwhile, approvals of new detached houses were in line with the average of about 3,100 approvals per month so far in 2016. There have now been 27,700 detached house approvals in 2016 so far – up 8 per cent on the first nine months of last year, indicating the continued health of this market.

In the first nine months of 2016 there have now been 50,500 new dwelling approvals in Victoria, which is within 1 per cent of what was approved in the first nine months of 2015 and well above the equivalent period in 2014, indicating that the longer term trend is still positive.

Outer-western road works will help address urgent infrastructure needs On Tuesday 8 November, the Victorian government announced that $1.8 billion would be directed for road upgrades and duplication.

“This is a welcome step in continuing to provide for the state’s urgent transportation infrastructure need in the face of rapid population growth,” Master Builders Association of Victoria CEO Radley de Silva said.

“Melbourne’s outer west is a hotspot of growth and activity and we need to prepare for that with transportation infrastructure that meets the heavier demand from the communities and businesses that rely on them,” he said.

“In five years, by which time the upgrades are to be delivered, Victoria will already be considerably larger than it is today. The population of Melbourne alone is expected to

reach 8 million by 2051. The sooner this is shovel-ready, the better off we’ll be.

“A strength of this package is that it combines duplication and widening of roads with their continued maintenance.

The building and construction sector is the second-largest full-time employer in the state, and this helps provide jobs now and into the future,” Mr de Silva said.

“Master Builders urges the government to continue committing to vital infrastructure spending, including funding the North-East Link, which was prioritised by Infrastructure Victoria in its recent Draft 30-Year Strategy as a missing link in Melbourne’s road network.”

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Master Builder Victoria

F R O M C E O R A D L E Y D E S I LVA

AFFORDABILITY OVERLOOKED IN THE GOVERNMENT’S APARTMENT STANDARDS With the population of greater Melbourne predicted to grow to Radley de Silva 8 million by CEO, Master Builders 2051, a further Association of Victoria 2.2 million dwellings are expected to be required, a significant number of which will be apartments. This growth comes at a time when housing affordability persists as a major issue for Victoria. It comes as no surprise that in the year to August, Victoria’s a median house price increased by 9.1 per cent to $824,000.

Victoria needs to embrace population growth and implement sensible and sustainable policies that will enhance the liveability of Melbourne without worsening our housing affordability crisis.

With this in mind, when the Victorian Government recently released Better Apartments: Draft Design Standards, Master Builders was concerned. It proposed mandating standards for a broad range of areas, including setbacks, storage, landscaping and daylight, each of which are likely to both add substantial cost and restrict design innovation.

As Victoria’s peak membership association representing the building and construction industry, we support an investigation into liveability standards for apartment design, using a robust and data-driven view of the needs of the industry and community. Master Builders advocates for an outcome that ensures the correct balance between liveability and affordability is maintained and the industry’s viability is supported.

We present five broad concerns with the government’s proposed standards.

MARKET NEEDS The introduction of any guidelines should be developed in the context of the shift in consumer demand for housing in Victoria – for example, some people may gladly sacrifice additional storage or a balcony for a more affordable apartment, particularly if it is their first apartment, intending to move into a larger one in the future.

Therefore, important details about the future population should be obtained to make appropriate, holistic and strategic planning policies.

Master Builders recommends that data on apartments that are a source of concern is needed, to show how these design standards can fix these concerns.

At present, the colloquial term ‘dog boxes’ doesn’t deliver enough objective information to enable the design of measureable objectives for apartment design to make them more appealing and liveable.

HOUSING AFFORDABILITY One practitioner has suggested the Draft Standards could add nearly $100,000 to the overall cost of an apartment (build and land cost increases), as well as a reduction in supply of apartments by up to 40 per cent.

In research commissioned by Master Builders and the Building Designers Association Victoria, Clause: 1 Planning examined three separate apartments sites to determine their compliance with the proposed standards. In many instances, the apartments analysed fell well short of the draft design standards-- an apartment complex in Brunswick, for example, that won awards for innovative design, architectural merit and environmental sustainability measures, would not be compliant with the proposed draft standards.

Master Builders has called on the government to provide a detailed analysis of the cost that the proposed standards would have on apartment construction and housing affordability, and demonstrate the cumulative impact all of these standards would have on costs and supply.

Master Builder Victoria

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F R O M C E O R A D L E Y D E S I LVA

BREADTH OF PROPOSED STANDARDS The Better Apartments public engagement process surveyed 14 categories of design, and the public prioritised those areas which they considered most desirable. However, in prioritising the wish list, the public was not provided with the costs of those categories. Therefore, the resulting prioritisation cannot be taken to be evidence of a willingness to pay for those design features.

Master Builders therefore suggests that the breadth of the design features should be reduced on the basis of the needs and cost-benefit analysis. For example, they could reflect the top public priorities identified by the Better Apartments Public Engagement Report.

OPERATION OF GUIDELINES Performance- based measurements may be a more effective way of achieving good design outcomes compared to prescriptive- based measurements. By giving a designer the flexibility to meet a standard’s objective through design, more innovative and potentially less expensive outcomes may be identified.

The structure of the draft standards offers only a one- sentence explanation for the objective of each area, yet provides detailed and prescriptive measurements for the standards. The lack of supporting information about the objective is likely to lead to a greater reliance by councils on whether a design complies with the specific standards, rather than meets the objective.

Therefore, we are of the view that the objectives of the draft standards should be re-drafted as measurable performance-based outcomes, which would then allow the prescriptive standards to be eliminated.

UNNECESSARY RED TAPE Master Builders has long advocated for reducing red tape in the building and construction industry and unnecessary red tape should be avoided. Therefore, additional sign-offs or steps in the planning scheme should be treated with caution, and efficient processes should be designed.

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2016 EXCELLENCE IN HOUSING AWARDS

MASTER BUILDERS ANNUAL MASTER BUILDERS EXCELLENCE IN HOUSING AWARDS TOOK PLACE ON FRIDAY, 21ST OCTOBER AT MELBOURNE’S PREMIER VENUE, PALLADIUM, CROWN. The awards were attended by the Hon. Richard Wynne MP, Minister for Planning, who presented the three major awards, Young Builder of the Year, Regional Builder of the Year and Master Builder of the Year, along with special guest Neil Coulson, Victorian Skills Commissioner.

Over 800 guests witnessed Capelcon take out top honours - Master Builder of the Year, for their project in Flinders.

Guests were treated to a red carpet experience with model and presenter Elise May on hand for interviews, and the official photographer capturing everyone arriving in their finest.

Our host for the evening, Tania Zaetta, kept the night moving well, and a special performance by Kate Ceberano was a feature on the night. Guests finished up on the dance floor, dancing to the tunes of Neon City.

THE 2016 MASTER BUILDER OF THE YEAR WAS AWARDED TO CAPELCON FOR THEIR PROJECT IN FLINDERS. The scope of works for this lavish project included the construction of the main homestead with four sweeping wings radiating from a central multi-room living zone, independent master and guest suites, an outdoor entertaining pavilion, a pool house with gym and bathroom, block work retaining walls, a 40-metrelong water feature, sandstone garden

screen walls and sandstone paving. Highquality materials, fixtures and fittings were utilised throughout, including the specialised sandstone walling, the curved metal roofing and the large oak cavity sliding doors. The construction met all of the energy rating and sustainability requirements, and while the build was completed over a period in excess of 18 months, excellent relationships were maintained throughout.

THE 2016 REGIONAL RESIDENTIAL BUILDER OF THE YEAR WAS AWARDED TO HEDGER CONSTRUCTIONS FOR THEIR PROJECT IN MARYSVILLE. This project called for the construction of a high-end contemporary home, set into a slight embankment and taking full advantage of the views of the surrounding hills. Given the feature porte cochere, entrybridge, main deck and horizon pool, the external design displays exceptional timberwork, stone and other natural materials that blend effortlessly into the landscape.

Inside, the first amongst many eyegrabbing features is the polished concrete floor, which flows through to a magnificent open kitchen with a sleek design, utilising space well, and allowing for functionality. Floorto-ceiling, double-glazed windows along with clerestory highlight glazing accentuate the openness with outstanding natural light.

THE 2016 YOUNG BUILDER OF THE YEAR WAS AWARDED TO DAVID MOYLE, BALLARAT CONSTRUCTION MANAGEMENT. David Moyle completed his apprenticeship as a carpenter in 2005.

In the same year, he established his own company known as Ballarat Construction Management (BCM), of which he is the Managing Director. Since establishing BCM, David Moyle has held several honorary positions in Master Builders’ Ballarat Region including President from 2013 to 2015 and Chairman for Master Builders’ Country Sector in 2014. He is currently a member of Master Builders’ Board of Management. David’s firm has been awarded several Master Builders regional Excellence Awards. The firm’s new headquarters in Ballarat, designed and constructed by David and his team, has also won several Excellence in Construction Awards. He is responsible for many domestic construction projects including the recently completed $1.5M luxurious multi-unit development in Hepburn known as “Clifftop”. David Moyle is a highly competent, technically astute and a well organised Master Builder who enjoys the challenges of technically complex buildings. He carries out his duties in a professional, skilled, orderly and businesslike manner. He is to be commended for earning this award.

Master Builders Association of Victoria congratulates and thanks all entrants in this year’s 2016 Excellence in Housing Awards, and looks forward to your continued support of this program.

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BEST RENOVATION/ADDITION $500,000 - $750,000

BEST RENOVATION/ADDITION $750,000 - $1M

Tru-Form Construction Pty Ltd Project: Port Melbourne

Grenville Architectural Construction Project: Toorak

Krystin & Nathan Trewin, Directors, Tru-Form Construction with Angela Cowell, Senior Sales Consultant, Rylock Windows

SPECIAL COMMENDATION BEST RENOVATION/ADDITION OVER $1M

Visioneer Builders Project: Middle Park

James Gooley, Michael Schuurmans, Venise Reilly, Visioneer Builders with Mark Wall, Senior Relationship Manager, Cbus

BEST DISPLAY HOME $300,000 - $350,000

Long Island Homes Project: Vale, Point Cook

Craig Delaney, Managing Director, Long Island Homes with Neil Coulson, Victorian Skills Commissioner

Tom Petty, Director, Grenville Architectural Construction with Angela Cowell, Senior Sales Consultant, Rylock Windows

Adam Corr & Ben Wartnaby, Directors, Corrben Pty Ltd with Joe Keiper, State Manager Victoria, MBA Insurance

BEST RENOVATION/ADDITION OVER $1M

K & H.R. Poulsen Pty Ltd Project: Lorne

Mark Wall, Senior Relationship Manager, Cbus and Nick Poulsen, Project Manager K & H.R Poulsen

BEST DISPLAY HOME UNDER $250,000

BEST DISPLAY HOME $250,000 - $300,000

Bentley Homes (Aust) Pty Ltd Project: Fremont 250, Mernda

Henley Properties Project: Monterey Belle Q2, Mernda

Joe Keiper, State Manager Victoria, MBA Insurance and MC Tania Zaetta on behalf of Bentley Homes (Aust) Pty Ltd

SPECIAL COMMENDATION BEST DISPLAY HOME $300,000 - $350,000

Dean Homes Project: Flemington 29, Mickleham

Marcus Dean, Director, Dean Homes with Neil Coulson, Victorian Skills Commissioner

Lisa Nightingale, Sales Manager, Henley Properties with Melanie Lang, Head of New Connections, AGL

BEST DISPLAY HOME $350,000 - $500,000

Burbank Project: Palladium 4600, Point Cook

Jarrod Sanfilippo, Managing Director, Burbank with Neil Coulson, Victorian Skills Commissioner

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BEST DISPLAY HOME $500,000 - $750,000

Carlisle Homes Project: Sheraton 48, Point Cook

Hans Oudemans, General Manager Sales, Carlisle Homes with Melanie Laing, Head of New Connections, AGL

SPECIAL COMMENDATION BEST DISPLAY HOME $500,000 - $750,000

Metricon Homes Pty Ltd Project: Vantage 46 Wembley, Cranbourne

Melanie Laing, Head of New Connections, AGL with Peter Langfelder, General Manager Victorian Housing, Metricon

BEST DISPLAY HOME OVER $750,000

Grollo Homes Project: Grollo 11, Glen Waverley

Alen Grollo, Construction Manager & Lui Grollo, Director with Laurie Mihan, Business Development Manager, Miele

BEST CUSTOM HOME UNDER $300,000

BEST CUSTOM HOME $300,000 - $400,000

BEST CUSTOM HOME $400,000 - $500,000

Acustruct Project: 13 Eugenia Street, Mernda

Beach House Constructions Pty Ltd Project: Cape Woolamai

Elite Homes (Melb) Project: Woodend

Danny Italiano, Director, Acustruct with Melanie Lang, Head of New Connections, AGL

BEST CUSTOM HOME $500,000 - $600,000

Todd Newman Builders Project: Bendigo

Todd Newman, Director, Todd Newman Builders with Laurie Mihan, Business Development Manager, Miele

Angela Cowell, Senior Sales Consultant, Rylock Windows and MC Tania Zaetta on behalf of Beach House Constructions

SPECIAL COMMENDATION BEST CUSTOM HOME $500,000 - $600,000

Swell Constructions Pty Ltd Project: Balnarring

Brett Miall, Director, Swell Constructions with Laurie Mihan, Business Development Manager, Miele

BEST CUSTOM HOME $800,000 - $1M

BEST CUSTOM HOME $1M - $2M

Larkin & Drought Builders Project: Fairhaven

Spacemaker Home Extensions Project: Port Melbourne

Craig Drought & Drew Larkin, Larkin & Drought Builders with Laurie Mihan, Business Development Manager, Miele

Anthoney Marcucci & Tim Hoare, General Manager, Spacemaker Home Extensions with Joe Keiper, State Manager Victoria, MBA Insurance

Peter Stepic & Emilio Rossi, Directors, Elite Homes (Melb) with Melanie Laing, Head of New Connections, AGL

BEST CUSTOM HOME $600,000 - $800,000

BH Prestige Homes Project: South Melbourne

Scott LaFerlita, Senior Business Development Manager, Cbus with Brent Henry, Director, BH Prestige Homes

SPECIAL COMMENDATION BEST CUSTOM HOME $1M - $2M

Malishev Constructions for 435-515 Knights Road, Mannerim

Ian Sutherland, Senior Designer, Malishev Constructions with Joe Keiper, State Manager Victoria, MBA Insurance

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Master Builder Victoria

2 016 E XC E L L E N C E I N H O U S I N G AWA R D S

BEST CUSTOM HOME OVER $2M

Capelcon Project: Flinders

Joe Keiper, State Manager Victoria, MBA Insurance with Phil Watson, Director, Capelcon

SPECIAL COMMENDATION BEST CUSTOM HOME OVER $2M

BEST MULTI UNIT DEVELOPMENT – UP TO 3 UNITS

DDB Design Development & Building P/L Project: St Kilda

Ballarat Construction Management Project: Hepburn

David McCallum, Director, DDB Design Development & Building with Joe Keiper, State Manager Victoria, MBA Insurance

BEST MULTI UNIT DEVELOPMENT – 4 TO 12 UNITS

BEST MULTI UNIT DEVELOPMENT – OVER 12 UNITS

Virgon Constructions Project: Kew

Iurada Property Group Project: Toorak

Renato and John Virgona, Virgon Constructions with Jarrod Coysh, Executive Manager E&C Development, Cbus

Mark Wall , Senior Relationship Manager, Cbus and MC Tania Zaetta on behalf of Iurada Property Group

Darren Scannell, Operations Manager, Ballarat Construction Management with Jarrod Coysh, Executive Manager E&C Development, Cbus

BEST SUSTAINABLE HOME

Larkin & Drought Builders Project: Fairhaven

Craig Drought & Drew Larkin, Directors, Larkin & Drought Builders with Angela Cowell, Senior Sales Consultant, Rylock Windows

BEST KITCHEN UNDER $40,000

BEST KITCHEN OVER $40,000

BEST BATHROOM UNDER $30,000

Damco Kitchens Pty Ltd Project: Templestowe

DDB Design Development & Building Pty Ltd Project: St Kilda

Damco Kitchens Pty Ltd Project: Brighton East

Rick Dalla-Riva, Designer, Damco Kitchens with Laurie Mihan, Business Development Manager, Miele

Scott LaFerlita, Senior Business Development Manager, Cbus with David McCallum, Director, DDB Design Development

Rick Dalla-Riva, Designer, Damco Kitchens with Laurie Mihan, Business Development Manager, Miele

BEST BATHROOM OVER $30,000

BEST KITCHEN IN A DISPLAY HOME

BEST BATHROOM IN A DISPLAY HOME

DDB Design Development & Building Pty Ltd Project: St Kilda

Carlisle Homes Project: Sheraton 48, Point Cook

Grollo Homes Project: Grollo 11, Glen Waverley

Ashleigh Columbus, National Account Manager, Fox FM with with David McCallum, Director, DDB Design Development

Hans Oudemans, General Manager Sales, Carlisle Homes with Joe Keiper, State Manager Victoria, MBA Insurance

Lui Grollo, Director, Grollo Homes with Joe Keiper, State Manager Victoria, MBA Insurance

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YOUNG BUILDER OF THE YEAR

REGIONAL BUILDER OF THE YEAR

MASTER BUILDER OF THE YEAR

David Moyle Ballarat Construction Services

Hedger Constructions Pty Ltd Project: Marysville

Capelcon Project: Flinders

The Hon. Richard Wynne MP, Minister for Planning with Young Builder of the year David Moyle, Ballarat Construction Management

The Hon. Richard Wynne MP, Minister for Planning with Steven Hedger, Director, Hedger Constructions

The Hon. Richard Wynne MP, Minister for Planning with Phil Watson, Director, Capelcon

Congratulations to all the winners

SPECIAL THANKS TO THE JUDGES AND SPONSORS JUDGES Very special thanks are extended to this year’s judges, who once again were faced with an extremely difficult task. This year’s judges were as follows: Chief Judges, Frank Pavan & Mort Mitchell, Dr Phil Alviano, Tony Croucher, Trevor Evans, Geoff Falk, Charlie Hartup, Peter Helfer, Efy Karagiannis, Robert Lees, Max Loche, Bob Lorich, Brian MacSweeney, Christopher McSteen, David McMath, Bill Miller, Jeni Neivandt, Steven Peluso, Don Ravida, Michael Rigg, Peter Sutton, Austin Swain, Peter Vleugel.

SPONSORS Last but not least, events such as this are not possible without the continuing and generous support of our sponsors. Thank you to our sponsors: AGA Apprenticeships Plus, AGL, Bourne Bathrooms and Kitchen Centre, Cbus, Crocmedia, Insinkerator, Databuild, Design 289 by Hardings, DG Global, MBA Insurance, Miele, Rylock Windows and Fox FM.

Fox FM is Melbourne’s home of Hits & Old School, with the biggest shows, hottest celebrity news, and all the biggest hits, plus the best old school tracks that you know and love! Get up with Fifi, Dave & Fev for breakfast, and drive home with Hamish & Andy in the afternoon, only on 101.9 The Fox.

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Master Builder Victoria

INSURANCE

Cyber Insurance: the basics With builders increasingly reliant on computers and technology for communication, Joe Keiper record keeping, State Manager Victoria, MBAIS and managing their business, it’s important to consider how to protect your own business from technologyrelated incidents, which, only a few years ago, would have seemed futuristic and far-fetched.

These days, almost everyone has been on the receiving end of an email containing a virus or malware, with the damage ranging from minor frustration to significant loss of system functionality and data. Many viruses now are undetectable for an extended period, with hackers able to review

your files, steal sensitive information and even hold you to ransom to regain information and system access.

Cyber incidents can even be as 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.

Cyber insurance provides cover across several different sections: PRIVACY BREACH Provides protection against third party claims for loss of • Personal, corporate, or employee information • Coverage typically includes defence costs.

SYSTEM DAMAGE Cover for lost, damaged or destroyed • IT systems • IT records/data • Coverage includes retrieving, repairing, restoring, or replacing data, systems or hardware, as well as external IT forensic or security consultant costs 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 – i.e. 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 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 • Payment of ransom • Costs of negotiating and mediating due to extortion attempt.

PRIVACY FINES AND INVESTIGATIONS • Cover includes fines and penalties incurred by you due to a privacy breach • Includes cover for your defence and investigation costs.

Cyber insurers offer a 24/7 response unit to provide you with immediate support for all cyber incidents and data breaches.

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.

Contact: MBAIS Phone: 1 800 150 888

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New Transporter. A lot goes into a Volkswagen van.

Small business owners put everything they have into their vehicle. Not just their supplies and equipment, but their motivation and ambition to make it on their own. At Volkswagen, we’ve packed our wide range of Transporters with advanced features like a 2L diesel engine, BlueMotion Technology and Fatigue Detection*. We put in so much because you put in so much. *Safety technologies are not a substitute for the driver’s responsibility of the vehicle.

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Master Builder Victoria

GREEN LIVING

Master Builders Green Living Conference 2016 THIS YEAR MARKED THE TENTH ANNIVERSARY OF THE ANNUAL GREEN LIVING CONFERENCE. IT TOOK PLACE ON 26 AUGUST. A NEAR SELL-OUT CROWD OF 114 ATTENDEES HEARD FROM A RANGE OF SPEAKERS AND TOOK PART IN PRODUCT INFORMATION SESSIONS AND A VERY INTERESTING QUESTION AND ANSWER SESSION.

The session began with an update from Master Builders’ Sustainable Building Advisor, Philip Alviano, who provided an update on the results from the Green Living Builders. 20 per cent of their new builds rank 7 stars or more, and, with solar panel Dr. Philip Alviano Sustainable Building Advisor systems and solar hot water installed in these homes, the result has been 9549 tonnes of CO2 being saved since 2014, equivalent to the annual emissions from 1797 cars.

Members always ask for information about new products.

Accordingly, the speaker presentations were paused for a product information session featuring displays from Proclima Australia, Rylock Windows, Bowens, BMW Doncaster and Weathertex. Attendees enjoyed a variety of extended product demonstration sessions which provided the opportunity to ask questions.

We always get lots of questions about solar power, and a hot topic at the moment is connecting batteries as well.

Austin Vaughan from Solar Link presented on the latest developments in solar and battery hybrid systems. He offered a great deal of information about what people should look for when searching for quality systems.

Prefabricated construction has been another important topic recently. Sean Morley and Denis Botvenev from Impresa House highlighted an exciting new development in Australian prefabricated construction. Presenting the Impresa House Solution and the benefits of an automated, CNC manufacturing construction process, they spoke about their company’s use of German machinery and processes to produce houses in their factory in the western suburbs of Melbourne.

Our next speaker, Sean Maxwell from the Air Infiltration and Ventilation Association of Australia talked us through how to approach building energy efficiency from an energy auditor’s point of view. The presentation covered the importance of the air-tightness of a building and then presented a number of construction techniques to improve air tightness.

Sally Wills from Small Change Design & Construction began the afternoon session with her presentation on the small house movement. Australia builds the largest homes in the world. Smaller homes result in reduced energy use, emissions and improved sustainability outcomes, yet still face numerous restrictions from inflexible council planning regulations.

Sally’s enthusiasm for building high-quality small housing that is both affordable and sustainable was clearly evident.

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GREEN LIVING

We always like to provide an opportunity for our members to gain some exposure by providing a presentation around their recent projects. It’s always a great way to show that our members are working at the forefront of the industry. On this day, Tony O’Connell and Nick Wootton did not disappoint.

Tony O’Connell from TS Constructions has worked on many commercial projects whilst developing and constructing premium, ecologically sustainable and visually stunning home designs.

He discussed the contribution which the TS Constructions team made to the Cape Patterson development and how it has clearly demonstrated that sustainability, luxury and practicality can combine to deliver successful results.

The Croft Wootton team is near completion of a green-living passive home in Somers on the Mornington Peninsula. Nick Wootton talked us through the build process of the Somers’ simple yet nuanced green living project which offers an impressive example of how every new home might be built.

An active few months for the sustainability team PREMIERS SUSTAINABILITY AWARDS 2016 FINALIST Celebrations continue for Master Builders’ training programs as our award for Victorian Small Training Provider of the Year at the Victorian Training Awards was followed up with our Green Card program, initiated last year, being announced as a finalist in the Education category for this year's Premier's Sustainability Awards.

Sustainability Victoria Chief Executive Stan Krpan congratulated the Master Builders team for its great work in reducing the impacts of climate change and building a more sustainable environment in Victoria.

“Delivering these awards each year means we continue to discover the talent and enthusiasm Victorians have for protecting their environment and thinking creatively about new sustainable business models,” Mr Krpan said.

These awards represent Victoria’s highest recognition for sustainability, and acknowledge leadership, innovation and achievement. Each finalist should be congratulated for improving sustainable outcomes across business, government and within the community."

Launched in February 2015, Master Builders' environmental induction is an industry-leading initiative, earning the trainee a Green Card, part of a larger Master Builders Association of Victoria emerging and sustainable technology series.

The day finished with all the speakers and product suppliers returning for a question-and-answer session. This lively and interactive session resulted in the exchange of some really useful information for all those in attendance.

We were once again very happy with the feedback received from attendees, and encourage you to let us know if there is a topic you are interested in hearing about or anyone you have met who you think would be a great speaker. We are already looking forward to next year’s conference. We’d also like to thank the sponsors:

The Green Card offers all building and construction workers a basic awareness and knowledge of environmental site management procedures, demonstrating how to behave with environmental responsibility with regard to site conditions, especially providing confidence when safely using spill kits.

Now in their 14th year, the Premier's Sustainability Awards continue to promote leadership and innovation in sustainability, and encourage a broader adoption of these practices by all Victorians.

• Proclima Australia – Reliable solutions for sealing your building shell.

• Rylock Windows and Doors • Bowens – Ozone Panel • Cbus • BMW Doncaster • Weathertex – Exterior wall cladding and timber weatherboards, 97 per cent natural timber and 3 per cent natural wax.

Contact: Premiers Sustainability Awards 2016 Website: www.sustainabilityawards.vic.gov.au

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Master Builder Victoria

FINANCIAL SERVICES

Options with finance We are now exiting a cheap-andeasy credit cycle in which money has Harry Pontikis been relatively Manager, MBA easy to obtain Financial Services for home loans, developments or cash flow. There has been a significant tightening of lending criteria from banks which has been initiated by government regulation as well as local and international market conditions.

SOME OF THE THINGS WHICH HAVE CHANGED INCLUDE: • Tighter serviceability ratios, resulting in being able to borrow less for the same income • Tightening and capping of investor loans, resulting in loans being declined or significantly restrained if they are for investment purposes • Lower-risk appetite for construction and development projects, resulting in higher capital contributions from borrowers and more presales required.

Deciding where to go for your loans is one of the most important decisions you’ll make. While many borrowers will choose to use a mainstream bank, nonbank lenders also have their advantages.

WHAT ARE NON-BANK LENDERS? Essentially, a non-bank lender is a lender that is not a bank, credit union or building society. It has its own source of funds, which it lends out with a margin for profit. A non-bank lender may also be a company or individual who borrows money from a bank at wholesale rates and then lends the money with a profit margin added.

Master Builders Financial Services has relationships with both banks as well as non-bank lenders – especially ones which have an interest in the building industry.

Benefits of a non-bank lender THERE ARE SEVERAL BENEFITS ASSOCIATED WITH TAKING OUT YOUR LOAN THROUGH A NON-BANK LENDER, INCLUDING:

Lower overheads: generally meaning lower fees. Nonbank lenders usually have smaller overheads, because they have fewer offices and fewer expenses when it comes to marketing and labour. This should lead to lower fees and better rates.

Customer service: Non-bank lenders try to offer a more personalised service because they tend to have a smaller database. It’s likely that you’ll be given more attention right through your loan process, even after you’ve signed on the dotted line.

Also, while you sometimes might deal with multiple people at a bigger bank, with non-bank lenders it’s more likely that you’ll be dealing with one person from the beginning.

Greater flexibility: Usually means fewer “hoops” to jump through to get a loan. Nonbanks don’t need the amount of detail or paperwork required by banks. Therefore, they take on a greater risk but also could charge more to compensate themselves against the risk.

Approvals: Sometimes it can take a while to get a loan approved by a big bank.

With a smaller, non-bank lender, you may be approved more quickly because you’re potentially talking to the loan decision-maker.

Range of choice: Given the range of non-bank lenders out there, you have a decent chance of finding one that suits your particular needs and circumstances. Master Builders Financial Services will give you a recommendation but you need to go with what works for you.

Accessing the alternate lending world can be done via a Master Builders Financial Services or a finance broker experienced in funding the building industry. Do not risk going direct to a bank or a non-bank as there could be serious issues if you fail to represent yourself properly.

Contact: Master Builders Financial Services Phone: 1300 137 539 or (03) 9411 4555

Steel Compliance.

If you don’t check for it, you might as well chuck it.

A factory production once-off assessment is not enough to assure steel compliance.

• As construction professionals using non-compliant steel could be your worst decision.

• E ngineers, certifiers or suppliers have the responsibility and power to refuse the use of unidentifiable or non-compliant steel.

• You manage the risk to human safety, reputation, livelihood and cost.

• Check your steel products’ compliance to AS/NZS Standards and building codes.

• Control your risks of non-compliance and reduce your liability through simple web downloads of ACRS Certificates at www.steelcertification.com

Don’t overlook steel compliance, look into ACRS first.

Call ACRS on 02 9965 7216 email info@steelcertification.com or visit www.steelcertification.com ACRS – The Australasian Certification Authority for Reinforcing and Structural Steels Ltd ABN 40 096 692 545

ACRS – Independent Third Party Australasian Standards Certification & Verification of Reinforcing, Prestressing & Structural Steels Compliance.

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Master Builder Victoria

LEGAL

Fair’s fair – Consumer protections now benefit small businesses CURRENTLY, SECTION 23 OF THE AUSTRALIAN CONSUMER LAW PROVIDES PROTECTION FOR CONSUMERS FROM UNFAIR CONTRACT TERMS IN STANDARD-FORM CONSUMER CONTRACTS. BUT WHAT ABOUT PROTECTING SMALL BUSINESS?

As of 12 November 2016, the current unfair contract term protections for consumers will Tristan Moseley Solicitor be extended to include small business contracts as well. This change will have a significant effect on the building and construction industry but amounts to a double-edged sword for builders, as the protection against unfair terms cuts both ways. Where the law applies, a builder will be protected from a Principal’s unfair terms and a sub-contractor against the builder’s.

When do the unfair contract term protections for small business apply?

For the unfair contract term protections to apply to a contract: i. At least one of the entities contracting employs fewer than 20 people; ii. The contract must be a “standard form” contract; and iii. The “upfront price” must be less than: a. $300,000 if the contract term is 12 months or less; or b. $1,000,000 if the contract term is over 12 months.

“Upfront price” means the amount disclosed to the other party before, or when, the contract is entered into and typically refers to the fixed price portion of a contract price. For instance, where a builder has fewer than 20 employees and enters into a schedule of rates contract (where the upfront price is less than the applicable cap), then regardless of the eventual contract price, or the size of the other party, the unfair contract terms provisions will apply.

The Australian Consumer Law does not specifically define what a “standard form” contract is, but provides principles that a court must take into account at section 27(2). Basically, a standard form contract is offered as take-it-or-leave-it basis. The factors that must be taken into account by the court when determining whether a contract is a “standard form” include: whether the contract has been prepared by one party prior to discussions; whether one party was required to either accept or reject the terms; whether there was substantial negotiation; and whether the contract takes into account the specific characteristics of the parties or circumstances. For instance, contracts included in a tender process would most likely be considered “standard form”.

WHAT’S “UNFAIR”?

A term is unfair if: it would cause a significant imbalance in the parties' rights and obligations; it would cause detriment (whether financial or otherwise) to a party; and it is not reasonably necessary in order to protect the legitimate interests of the party relying on the term. However, terms

dealing with the price, the subject matter/scope or terms required by law are excluded from the operation of the provisions. Examples of types of unfair contract terms can be found at section 25 (1) of the Australian Consumer Law: a. a term that permits, or has the effect of permitting, one party (but not another party) to avoid or limit performance of the contract; b. a term that permits, or has the effect of permitting, one party (but not another party) to terminate the contract; c. a term that penalises, or has the effect of penalising, one party (but not another party) for a breach or termination of the contract; d. a term that permits, or has the effect of permitting, one party (but not another party) to vary the terms of the contract; e. a term that permits, or has the effect of permitting, one party (but not another party) to renew or not renew the contract; f. a term that permits, or has the effect of permitting, one party to vary the upfront price payable under the contract without the right of another party to terminate the contract;

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LEGAL

g. a term that permits, or has the effect of permitting, one party unilaterally to vary the characteristics of the goods or services to be supplied, or the interest in land to be sold or granted, under the contract; h. a term that permits, or has the effect of permitting, one party unilaterally to determine whether the contract has been breached or to interpret its meaning; i. a term that limits, or has the effect of limiting, one party's vicarious liability for its agents; j. a term that permits, or has the effect of permitting, one party to assign the contract to the detriment of another party without that other party's consent; k. a term that limits, or has the effect of limiting, one party's right to sue another party; l. a term that limits, or has the effect of limiting, the evidence one party can adduce in proceedings relating to the contract;

m. a term that imposes, or has the effect of imposing, the evidential burden on one party in proceedings relating to the contract; or n. a term of a kind, or a term that has an effect of a kind, prescribed by the regulations.

contract can still operate without the unfair term, it will. Additionally, the party seeking to impose the unfair term may, depending on the particular circumstances, be found to have engaged in unconscionable or misleading and deceptive conduct.

In general, clauses which give mutual rights; are clearly drafted and understandable; and can be shown to be reasonably necessary in order to protect the legitimate interests of the party relying on the term are unlikely to be considered unfair.

WHAT SHOULD OUR MEMBERS DO? It is strongly recommended that any contracts which are likely to be caught by the unfair contract term provisions are reviewed by a suitably experienced lawyer.

ENFORCEMENT A small business can seek a declaration at court that a term is unfair. However, it is more likely that this would be raised during a dispute between parties to a contract. The ACCC or ASIC can also investigate and commence an action.

The effect of having a term declared unfair is that the term is severed from the contract. This means that if the

If you would like to know more, call the Master Builders’ Legal Department.

Contact: Master Builders’ Legal Department Phone: (03) 9411 4555

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Master Builder Victoria

OHS

Avoiding the avoidable

One of the significant after-effects of a fatality that occurred on a housing construction John Darcy Head of OHS site in March 2014 recently came to a climax in the county court when the builder, Bilic Homes, pleaded guilty to breaches of the OHS Act 2004 and were convicted and fined $300,000.

In addition to the hefty penalty, the legal fees for Bilic Homes were likely in the tens of thousands of dollars.

The Brighton wall collapse was tragic on many levels, only some of which are covered in this article. Almost twelve months after the incident, the wife of the deceased worker appeared in a feature in The Age. She had tried to seek compensation through the WorkCover scheme for the death of her husband.

The claim was denied on the basis that her husband was not a deemed employee of the builder. The husband did not have life insurance or income protection (which would have applied, had he been injured) and, as a consequence, she was left with limited funds to support herself and her two children.

As a consequence of the rejection of the WorkCover claim, the only path left open to the widow for obtaining compensation was to sue the builder for negligence under his public liability insurance policy. The matter was recently settled out of court, two-and-ahalf years after the incident.

Another worker was on site when the wall collapsed, and witnessed his boss being killed. He also served a WorkCover claim on the builder and his claim was also rejected as he was also not a “deemed employee” of the builder. The carpenter who lodged that claim for post-traumatic stress should have been covered by his employer’s WorkCover insurance.

There are many builders and subcontractors who claim they use only subcontractors in their business.

In many instances, there is a small number of workers who perform almost all of their work for the one entity and, as such, that entity is legally required to cover those workers under their WorkSafe Insurance Policy.

WorkSafe is conducting an amnesty on WorkSafe insurance and subcontractors between September and December 2016.

From January 2017, WorkSafe intend to blitz the construction industry to target small business builders and subcontractors to identify whether employers are properly covering “deemed subcontractors” under the WorkSafe insurance policies.

It was the Bilic Homes incident that catalysed this campaign. Master Builders urges its members to take stock and to seek advice on their obligations.

We also urge members to spread the word to their subcontractors as they may also be affected.

The Master Builders OHS Unit is here to support members to assist them to protect their businesses and to ensure that their sites are safe. We also support members when things go wrong. The consequences of a workplace fatality go well beyond the OHS prosecution. Lives are changed forever.

Contact: OHS Unit Phone: (03) 9411 4569

Inside.

Outside.

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Master Builder Victoria

TRAINING

Diploma or Certificate: which qualification is for you?

At Master Builders, we pride ourselves on delivering the highest quality training Katie Tunnah to produce the Logistics Team Manager highest quality builders. As such, we expect our students to have sufficient knowledge and experience in the construction industry prior to enrolling in our courses. The knowledge and experience required differs between the two courses as they both have different workload requirements.

So, even though you think you might want to pursue the Diploma, not everyone will be suited for this, but choosing the Certificate will be just as beneficial to you.

The CPC40110 Certificate IV in Building and Construction (Building) consists of 29 face-to-face delivery days, spread over approximately six months. It also requires about 15 hours per week of self-paced study and assessment. There are 16 nationally recognised units in the Certificate IV and you must achieve competency in all units to be awarded this qualification.

Master Builders entry requirements for this course are: • the required level of language, literacy and numeracy (LLN) skills.

• at least three years postapprenticeship doing relevant work in the building and construction industry • hold CPCCOHS1001A Work Safely in the Construction Industry (white card).

The CPC50210 Diploma of Building and Construction (Building) is a much longer and more demanding course.

It consists of 45 face-to-face delivery days, spread over approximately two years. It also expected that students will need to allow about 15 hours per week to complete homework activities and assessments.

There are 19 nationally recognised units in the Diploma and you must achieve competency in all units to be awarded this qualification.

Master Builders’ entry requirements for the course are: • the required level of language, literacy and numeracy (LLN) skills.

• a minimum of five years work experience in the Building and Construction industry • currently working on a construction site in a management/supervisory role • in a position to trial and evaluate management systems, processes and procedures in a construction workplace.

• hold CPCCOHS1001A Work Safely in the Construction Industry (white card).

All applicants must undergo a PreTraining Review, during which Master Builders will collect evidence to verify that applicants have met the entrance

requirements, including the work experience that will enable successful completion of this Master Builders course. Our entry requirements may be strict, but we want you to succeed, and we want you to come out with a qualification you have earned, not just been given. We want Master Builders to be the best builders in practice.

If you are having trouble trying to decide which qualification is right for you, call us to speak with one of our Learning and Enrolment Officers who will be able to talk you through the two different courses and give you a brief assessment of what may work best for you based on your current knowledge and experience.

Contact: Training Department Phone: (03) 9411 4555 Email: training@mbav.com.au Website: mbavtraining.com.au

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Master Builder Victoria

33

C A S E S T U DY C O N S T R U C T I O N

Chris brushes off the brothers Chris from Case Study laughed out loud when he saw the proposed pay Chris from Case increases as he Study Construction read through the draft Enterprise Bargaining Agreement (EBA) given to him by the CFMEU. “5 per cent? They’ve got to be joking”, he thought. He had heard about the union’s proposal, but seeing it for himself in print made him realise that the idea wasn’t just ridiculous, it was outright laughable.

Chris had been approached recently on his medium-density apartment project by union official Jerry, about signing onto the new EBA. The “brothers” had been chasing Chris for years and he had managed his projects well without their help so far. But lately, they had started hassling him non-stop. Text messages, phone calls, emails... they weren’t giving up.

“We’ve got all the major builders and subbies signed up,” Jerry announced.

Chris saw the union’s Facebook posts where they listed various builders and subcontractors who had signed onto the EBA. Chris did not recognise any of his preferred subbies on the list.

“They must be getting pretty desperate to produce these lists,” Chris thought.

As Chris read more of the detail in the proposed EBA, he realised the pay increases were only part of the picture and that if he signed it he would be effectively handing over control of his projects to the union. Chris thought about his current clients, a number of whom had already told him that he was a shoo-in for their next project. He had built strong relationships with a number of property owners, architects and developers and, whilst they respected the quality of the work Chris did, he knew commercial realities would always come first.

Chris knew that if he had to quote his next project allowing for a 5 per cent

increase to labour costs, that there were at least a half a dozen builders who would take the project from under his nose.

Chris had heard all of the fuss about code compliance, but tendering for Commonwealth-funded work was not an issue for him. Chris questioned whether there was really any benefit for him at all in signing the EBA, and quickly concluded there was nothing for him to gain.

Chris’ mind turned to the opportunities that would be presented by starting to tender for some of the commercial work that was available, and how he would have a clear commercial advantage over his competitors who had signed onto an agreement that was economically unsustainable. “With those wages, there is no way they can compete with me!”

Chris realised.

The next morning brother Jerry was on the phone again, chasing Chris’ signature. It was a short conversation.

“Thanks, but no thanks,” he said.

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Master Builder Victoria

REGIONAL ROUND UP

From the regional offices:

Geelong site visits

Owing to the dedication of members from Master Builders’ Geelong Section, local secondary school students have now had a first-hand look at opportunities in the building and construction industry.

On 13 October, a number of Geelongarea Master Builders welcomed students onto their sites to allow students to see a working construction work site in action.

This is an initiative of Norm Lyons, a long-term member passionate about exposing local young people to all aspects of the building industry.

This event is now into its third year, with the efforts of members in the Geelong region coupled with the involvement of The Gordon, ensuring this day is a great success.

Leesa Hanlon, Industry Engagement Manager at The Gordon, facilitated the day in conjunction with Master Builders members Norm Lyons from Lyons Construction, Jamie Mills from JM Homes, Gary Watts from Signature Homes, Chris Walker from Walkers Plaster & Tiles, Ben Caruso from Caruso Bricklaying and Tim ‘Bluey’ McGrath from Blue Sky Homes.

All local secondary schools were invited to join in, and two busloads of students from Geelong High, Geelong Technical College, Grovedale Secondary College, Oberon Secondary College, St. Josephs College and the Geelong Technical Education Centre took part.

A tour of The Gordon East Campus and a much-appreciated barbecue provided

by The Gordon spurred the students on to gain prizes for correct quiz answers and to hear about the support offered

by Master Builders and ALink. Showbags provided a popular round-up to the day.

During the trip, which departed from The Gordon East Campus, Tim ‘Bluey’ McGrath engaged the students and spoke about his own experience as a carpenter and local business owner before touring two work sites with projects underway in Torquay – Lyons Construction’s “Star of the Sea” aged-care facility, and a JM Homes domestic site.

A significant amount of planning, coordination and tireless work goes into this day. Master Builders extends its gratitude to Norm Lyons and all of the dedicated members who made this happen, and Leesa Hanlon and other volunteers from The Gordon as well.

Inductions prior to touring at each location ensured student safety.

The generosity of our members and their staff and subcontractors on site was impressive, with all taking the time to escort students, explain the tasks underway, highlight the range of occupations available and answer questions. The enthusiasm and passion for their work and their industry was palpable. It will certainly be remembered by the students, and will no doubt inspire some to take up a career in the building industry.

This day has proven to be such a success that The Gordon is looking to arrange a similar day for students in the Wyndham region, the location of their two new campuses.

To find out more about services provided by ALink and the Master Builders Careers team contact us today.

Contact: Master Builders Careers Phone: (03) 9411 4555

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Master Builder Victoria

S O C I A L PAG E S

2016 Master Builders Excellence in Housing Awards

President Peter Picking welcoming guests

Young Builder of the Year David Moyle

Kate Ceberano wowed the crowd

One of our proud sponsors Rylock Windows

Stunning opening performance by Neon City

The MBA Insurance crew

A chat on the red carpet with Elise May

Celebrating on the dance floor

Ladies from Arch 10

Larkin & Drought team arrive at the Housing Awards

YOUR HOME IS PROTECTED BY BAYER Bayer offers Australia’s most comprehensive termite protection system – the Bayer Protection Program.

If you choose to activate and be covered by the Bayer Protection Program you will be protected by an exclusive $1 million warranty!

The Bayer Protection Warranty starts with an inspection of the home by a Bayer Accredited Timber Pest Inspector. If the home is termite-free and possible conditions which may be conducive to termite attack are addressed, your Bayer Protection Warranty can be renewed. The same inspection takes place each year to give the homeowner total termite protection. This warranty can be renewed annually (fee applies) for the life of the structure.

Activate your Bayer Protection Warranty by visiting www.kordonwarrantycentre.com.au or contact the Bayer Protection team on 1800 552 802

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38

Master Builder Victoria

MEMBER PROFILE

Australian Builders Network THE AUSTRALIAN BUILDERS NETWORK (ABN) IS A MEMBERSHIP-BASED ORGANISATION, WHICH PROVIDES A RANGE OF EXCLUSIVE SERVICES TO SMALL AND MEDIUM-SIZED DOMESTIC BUILDERS.

While membership buying groups are not new, the inspiration for ABN came from founders Steve Yagmur and Barry Hasturk, both seasoned builders who have experienced firsthand the challenges builders face when trying to win business and manage jobs.

By understanding the key elements that keep builders awake at night, the founders set about creating a membership structure which went beyond traditional alternatives in the market, encouraging members to treat their “membership facilities” as an extension to their own business. Part of this includes a strategic relationship with Master Builders Association of Victoria through which they offer a growing range of services to ABN members including MBAIS and Master Builders Financial Services (Chocolate Money).

ABN is also a regular sponsor of Master Builders marketing and information events used to network and keep apprised of changes in our industry.

EXCLUSIVE MEMBERSHIP SERVICES INCLUDE: • Volume Buying Power from respected Australian suppliers: - Materials only - Materials and installation - Services.

• Exclusive use of our class-leading “Product Selection Centre” (PSC).

- Influence the client to choose you before contracts

- Simple booking online - Only one member and client at a time.

• Wide range of set floor plans and facades - Includes member’s company contact details.

• Exclusive Meeting and Conference Rooms - With AV and Tea/Coffee making facilities.

• In addition, members enjoy - Centrally managed, easy-to-use menu driven – secure supplier price files - Industry updates and product training.

- Monthly newsletters and supplier updates - A management team who speak the industry language - Regular contact and visits from the ABN team - Job costing and Bills of Quantity (BOQ), available from late 2016.

NO CONTRACTS – PAY AS YOU GO In addition, the entry point for becoming a member is simple, requires no contracts, has affordable monthly membership fees and you can opt out any time. ABN also provides our members with assistance when filling out credit application forms so they can fast-track the process. Members also sign an agreement to maintain confidentiality with supplier pricing.

PERFECT RELATIONSHIP FOR ESTABLISHED OR NEW BUILDERS Apart from providing membership for established builders, we have also been adopted by new builders who recognise that it would take them a long time to develop relationships with material and service suppliers. Through joining ABN they gain immediate access to a range of products and services which make them feel confident, competitive and professional.

BENEFITS TO OUR MEMBERS • Increase your business profits with collective buying power • Take the hassle out of negotiating the best rates with suppliers • Improve your business profile by using reputable suppliers • Reduce your business administration so you can concentrate on growing your business • Impress your clients with ABN’s Product Selection Centre • Utilise our meeting and conference rooms for your client meetings or to close that prospective deal with a new client • Receive product training and technical support to keep you updated with new and existing product.

Contact: Australian Builders Network Phone: 1300 101 201 Website: www.abnetwork.net.au

Master Builder Victoria

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VA L U E O F M E M B E R S H I P

Travelling overseas and want your phone working business as usual?

THE MINUTE WE HEAD OVERSEAS WITH OUR PHONES WE’RE HIT WITH A CONFUSING MESS OF TECHNICAL JARGON, EXPENSIVE ROAMING AGREEMENTS, CONFLICTING ADVICE, AND NON-WORKING GEAR. SOUND FAMILIAR? IT ISN’T OUR IDEA OF FUN AND WE’RE SURE IT ISN’T YOURS, EITHER. Since we all want our smart phone to work when we travel, the team at Master Builders Connect has Ingrid Mountford Membership Manager put together a unique, Automatic International Roaming Day Pass for Master Builders’ members, making it super easy to enjoy 'anywhere, anytime' access.

The Automatic International Roaming Day Pass allows you to stay in touch with friends, family and clients while overseas, which means you won’t miss

important calls and messages. It also lets you avoid using public phones or making expensive international calls from hotels and airports.

This particular day pass is unique to your Master Builders Connect account, as the once-daily fee includes 58 countries, while most travel passes are usually for specific ‘zones’, often creating bill shock for customers.

Another benefit of the pass is that it is automatically applied as soon as the first ‘charging event’ happens overseas. This means members are protected without having to call in to add packs before they travel.

Our automatic International Roaming Day Pass provides peace of mind when you take your mobile overseas, along with the convenience of using your own number – just like at home.

For $10 a day, our International Roaming Day Pass can be used in 58 eligible countries, and when you’re in an eligible country gives you an international data allowance of 100MB per day, unlimited voice calls and SMS to standard numbers anywhere in the world.

Contact: Membership Department Phone: (03) 9411 4555 Website: www.mbconnect.com.au

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Master Builder Victoria

41

MEMBER MILESTONES

Member milestones MASTER BUILDERS VALUES LOYALTY TO OUR ASSOCIATION AND AWARDS CERTIFICATES TO MEMBERS AT MILESTONES OF 10, 15, 20 AND 25 YEARS, AND PLAQUES AT 30, 40 AND 50 YEARS OF CONTINUOUS MEMBERSHIP. WE NOW RECOGNISE AND THANK THE FOLLOWING MEMBERS WHO HAVE ACHIEVED THESE MILESTONES BETWEEN 25 JULY AND 6 OCTOBER 2016.

We appreciate that many members have continuous years of service that fall between these milestones and hope that you understand that we award certificates and plaques only for the milestones mentioned. If you are a long term member we thank you for your commitment and look forward to recognising your loyalty when you receive your next milestone certificate or plaque.

40 YEAR PLAQUE Altostruct Pty Ltd Ararat Homes Pty Ltd Barry Stokes M D & S M Roxburgh Malishev Group Pty Ltd Rawlins Constructions Siracusa Building Co Pty Ltd

30 YEAR PLAQUE David Phillips G W Habla H V B Building & Construction Pty Ltd J & B Zbiegien Jeffrey M Gittens Keon Constructions Naxos Constructions Pty Ltd Pavan Consultants R E Jones RC & HA Kilsby

25 YEAR CERTIFICATE Albatross Homes Carpentry Design Pty Ltd D C Property Services Entire Shopfitting Pty Ltd G C R Treadwell Greenwood Built Ian Cross Constructions Pty Ltd JDSA Constructions Pty Ltd Keltec Constructions Loving Builders Mewland Pty Ltd Michael Rezes Moresi Builders Pty Ltd Peter Purcell R C Swan

20 YEAR CERTIFICATE BBM Developments Craig Collins Building Pty Ltd David John Gray G & L M Hewitt Geoff Brereton Engineering Hawkins Reblocking K J & L M Horstman Leigh Buckley Mod Homes Pty Ltd O’Dowd Builders Pty Ltd

P Grenfell Building & Maintenance P H Building & Maintenance Peninsula Construction Group Pty Ltd Profast Constructions Pty Ltd R M Hermans R W & S M Sharp Ralph Lewis T R & D R Misson Builders & Renovators

15 YEAR CERTIFICATE Abode Inspirations Pty Ltd Alternate Dwellings Pty Ltd Bernie Leen & Sons Pty Ltd Betnale Pty Ltd Brian Charles Gibson Canterbury Roof Tiles City Circle Demolition & Excavation Pty Ltd Cope Ag Dasa Construction Pty Ltd G J Cole Gallasch & Associates Pty Ltd Geoff Nicholl Constructions Industrial Demolition Services Pty Ltd J K Webb Builders Joe’s Construction Pty Ltd K A S Constructions Keith McRae Pty Ltd Larrimey Pty Ltd Melford Construction Pty Ltd Phillip Lang Nominees Pty Ltd Rafferty The Wrecker Pty Ltd Residence Builders RMANDCO Pty Ltd Sam Bramston Trademark Property Group Pty Ltd Unistone Stonemasons Pty Ltd Wainwright Ryan Eid Lawyers

10 YEAR CERTIFICATE A & D Services Pty Ltd Amster1 Pty Ltd Aussie Pergolas And Decks Pty Ltd Austral Bricks Pty Ltd B J Tucker Homes Ballanced Constructions Pty Ltd Baroque Developments Pty Ltd Bartlett Architectural Construction Pty Ltd BDB Builders Pty Ltd Beach House Constructions Pty Ltd Bill Apostolopoulos Blueprint Commercial Pty Ltd Brent Builders Pty Ltd Buildrich Home Improvements Carl Briody Constructions Chandlerbuilt Pty Ltd Claygent Home & Building Maintenance Conset Pty Ltd Construction Zone Commercial Interiors Pty Ltd Constructpro Pty Ltd Costa Constructions Countrywide Pools & Spas Cozmic Constructions (Vic) Pty Ltd Creative Homes & Investments Pty Ltd Crimson Creations CW & EA Kennett Davie Construction Pty Ltd DEX Constructions Pty Ltd Double ‘M’ Constructions Pty Ltd Envision Homes Pty Ltd Four Reed Pty Ltd G B Seckold Building Contractors HDH Construction Heenans Building Service Henry Akerstein Hermitage Homes Innovative Building Group Pty Ltd J K Cooper Jasmina Grozdanovska Jason Irwin Jennifer Watts Jesalla Homes Jims Fencing Rosanna Johnstaff Projects (Vic) Pty Ltd Karison Homes Pty Ltd Karl Melkus Construction

Kevin Brearley Masbuild (Aust) Pty Ltd Mercav Constructions Pty Ltd Morgan Home Builders Pty Ltd Nailed Constructions Pty Ltd Ogon Constructions Ogun Building Optimum Renovations Outdoor Indulgence P & G Frawley Family Trust Peter Baxter Pino Caputo PrecisionTech Building Concepts Pty Ltd Quadro Corporation Pty Ltd Quilliam Building Ranshe Pty Ltd Reign Homes (Vic) Pty Ltd Ron Lucas Rosemont Homes Pty Ltd S G C Developments Pty Ltd S.N McLennan Selca Pty Ltd Shanley Building Services Pty Ltd Sheer Construction Pty Ltd SJA Constructions Victoria Pty Ltd Solid Developments Stargate Homes STZ Constructions Pty Ltd Swift Sign Industries Pty Ltd T J Bethune Transform Homes Urban Wardrobes & Showerscreens Pty Ltd V Constructions Pty Ltd Wamac Constructions (Mark 2) Pty Ltd Warwick Constructions Pty Ltd Watershed Building Consultants Pty Ltd William James Stibbs Worldclass Industries

42

Master Builder Victoria

E XC L U S I V E D I S C O U N T S

E USIV EXCL BER

MEM

R

OFFE

MASTER BUILDERS EXCLUSIVE FLEET DISCOUNT CONTACT US FOR MORE INFORMATION ABOUT OUR EXCLUSIVE OFFERS

PH: 1300 724 131 mbav@prestonmotors.com.au

HAD A CAR ACCIDENT? For members of Master Builders, Sheen Panel Service Bulleen provides:  $200 insurance excess reduction  Free pick up and delivery of your car from any location in Melbourne  Free loan car for duration of repairs*  Management of insurance claim process on your behalf Call Joe on (03) 9852 1511 (BH) or 0418 835 025 (AH)

EAU006

Have a job or booking a holiday? Europcar provides Master Builder Members 10% off the best rate of the day. Simply quote contract number 53085954 europcar.com.au

1300 13 13 90

* Conditions apply. Utes available.

*Visit website for full Terms & Conditions

CHOICE HOTEL OFFER Choice Hotels offers all members access to both the Corporate and Best Online Rate of the day through both the web (www.choicehotels.com.au) and reservations - 13 2400

Master Builders Connect As a Master Builders member, you're right to expect no-nonsense great deals. That's why we've teamed up with Telstra to bring you more of the good stuff at exclusive mates’ rates.

Save on a wide range of mobile, landline and internet products, with the most reliable coverage in Australia.

Simply quote or enter the Association code: 00223300 Visit choicehotels.com.au, the newest and largest hotel website in Australasia with the best online rates guaranteed!

Choice Hotels Australasia™ has more than 290 Comfort™, Quality™ and Clarion® hotels in the Australasia region.

Visit mbconnect.com.au or call 1300 88 13 72 and connect to more.

EVEN BIGGER BANG FOR BUCK WITH YOUR CALTEX STARCARD Master Builders can now save 3.5¢ p/ltr off unleaded fuel and 4¢ p/ltr off diesel fuel with their Caltex StarCard.

Apply today, call (03) 9411 4555 or visit www.mbav.com.au

Master Builder Victoria

43

NEW MEMBERS

Welcome to our newest members MASTER BUILDERS IS PLEASED TO WELCOME THE FOLLOWING NEW MEMBERS WHO JOINED THE ASSOCIATION IN AUGUST, SEPTEMBER AND OCTOBER 2016.

CONGRATULATIONS FOR JOINING THE MASTER BUILDERS ASSOCIATION OF VICTORIA.

ASSOCIATE

HOUSING PROVISIONAL

Guymer Lawyers Pty Ltd ITA Enterprise Pty Ltd J & A English Consulting Jarrod Pohl MUHO Home Renovations Pty Ltd NBN Co Limited

Andrew Devenish Bell Building & Investments Pty Ltd Benjamin Dawson Blu Constructions Blue Mount Commercial Constructions Pty Ltd CDT Electrical Pty Ltd Chapel & Oak Continuum Constructions Pty Ltd Creative Mind Mob Crew Property Services Pty Ltd Daniel Andrews Daryoush Raki DB Construction Deol Constructions DerCon Constructions Dominic Alexander Sant DS Carpentry Installations DX Stone & Renovations Dylan Cuff Eco Built Developments Pty Ltd Eye Q Constructions Pty Ltd Firnon Group Pty Ltd Fusion Mortgages Fusion Property Group (Victoria) Pty Ltd Gary Brisbane Green Generation Group Pty Ltd GreenX Homes Pty Ltd Hardasa Rock Concreting & Building Services Hutto Built Hydebuild Pty Ltd Hyunwoo Ronnie Park Irisha Pty Ltd James Cooper-Wallis James McLean Building Services Jarrad Rogers Constructions Jarrod Lawry Jason Jones Jason Khouri Jason Spicer Joanna Tsaparas John Dagher Johnson Builders Pty Ltd Joshua Saccutelli JV Carpentry K & G Mouchaileh Pty Ltd Kalcam Pty Ltd Karthigean Tharmalingam Konig Construction Group KW Fencing L & Y Building Group Pty Ltd L.R.Oliver Construction Pty Ltd Lambruk Joiners & Cabinet Makers Le Fevre Constructions Lumel Pty Ltd

GENERAL CONTRACTOR Build 77 Pty Ltd J Pemberton Constructions Pty Ltd MKM Constructions Texco Construction Pty Ltd

GENERAL CONTRACTOR PROVISIONAL A & C’s Total Building Maintennance Buildability Management Services Paul Williamson Pipeworx Plumbing Supplies Topfit Projects Pty Ltd

HOUSING Alisons Homes Australian Building Company Pty Ltd Axia Building Group (Australia) Pty Ltd Blue Cube Developments Pty Ltd Blue Ridge Homes Pty Ltd C & S Advanced Building CNC Constructions & Developments Pty Ltd Custom Choice Builders David L Maher DRB Constructions EJ Zocco Constructions Pty Ltd Gavan Construction Pty Ltd Global Build Group Pty Ltd I & R Developments Pty Ltd J L Wade Developments Pty Ltd J.N.X Construct Pty Ltd Jack Adlawan JPS Green Homes Komfy Homes McGregor Building Peak Built PMJ Inspiring Homes Primebuilt Pty Ltd R John & Sons Renovation Riot Room for Improvement Pty Ltd Sean McKenzie Strangio Builders Pty Ltd Welsh Construction Pty Ltd

M/S Jaqueline L Lepage Ptnr B & J L Lepage Marcon Building Concepts Pty Ltd Martin Turpie Constructions MGB Contracting MGH Trade Solutions Modacon Pty Ltd Murry Construction My Favourite Carpenter Pty Ltd Nathan Altmann Navara Homes Pty Ltd Nikola Kolosov NJO Carpentry NR Architecture Construction Panayotis Papachristoforos Parker White Constructions (Vic) Pty Ltd Paul Treadwell Peter Umbers Carpentry & Joinery Phillip Wilson Carpentry Services Qualcon Australia Pty Ltd Rados Constructions Pty Ltd Raffaele Polvere R-Built Pty Ltd Rehab Zahraman Richard Burrowes Rowan Towse Project Construction Scott Gheller Sealed Construction & Property Services Siu Pan Hui SJH Constructions Subocon Pty Ltd TDR Carpentry Pty Ltd Top Level Carpentry Trevean Building Contractors Tyson Webb Up-Tech Constructions Pty Ltd Wise Build

HOUSING SUBCONTRACTOR ABS Bricklaying Adam Mountain Allbuilt Constructions Pty Ltd Arilyn Pty Ltd Ashley Lane Ben Dove BHC Plumbing Contractors Brett Cobb Byron Crowe Conpave Victoria Pty Ltd Conreb Holdings Craigs Practical Turning Dan Ramia Carpentry Deckable Pty Ltd Earthcraft Landscape Construction Expert Traders Pty Ltd Fadi Alber Green Stone Landscape Design & Construction Pty Ltd

Jeremy Pargeter Carpentry Kayson Developments Kellaway Landscapes Lusher Landscaping Marc Bishop Metro Reblocking & Underpinning Pty Ltd MRC Concreting Pty Ltd Northern Sheds Pty Ltd Outdoorable Living Australia Parkview Landscaping Prestige Gardens Procarp Carpentry Pty Ltd Retain It All RK Carpenty Pty Ltd Simon Baker Carpentry Trend Building Group Pty Ltd TwoTwo Australia Urban Garden Designs Warham Deco Tiling Pty Ltd Watersedge Pools Pty Ltd

MASTER TRADESMAN A & B Doors BTJA Pty Ltd Macjac Sheds Vic Underpinners

MATERIALS, MANUFACTURING & SUPPLY Australian Gas Springs Evo Building Products Gippsland Solar Pty Ltd Hadley Insulation Pty Ltd

SPECIALIST CONTRACTOR Boswen Pty Ltd Brendon Kirwood Building Repair Experts C2 Group CDH Commercial Pty Ltd Civil Infrastructure Group Pty Ltd Complete Shotcrete Pty Ltd Copperform Victoria Pty Ltd Frizco Shopfitting & Building Services Pty Ltd Hitch Group Pty Ltd Jarrad Rosbrook Keen Edge Construction Pty Ltd LTU Carpentry Pty Ltd Mega Carpets Pty Ltd Melbourne Commercial Fitting Melbourne Paving Pty Ltd Mike Jansz Landscape Consultant Pty Ltd MPD Building Development

44

Master Builder Victoria

NEW MEMBERS

Murrihy Demolitions Nepean Partitions & Ceilings Obsidian Roofing PFS Group (Vic) Pty Ltd Premium Fitouts Pty Ltd PWGG (Vic) Pty Ltd Qualitas Building Solutions Pty Ltd Robert Pavlovic Simpson Millar Projects Pty Ltd Subterranean Solutions Pty Ltd Supreme Membrane & Sealant Services Pty Ltd Sustainable Building Concepts Pty Ltd Techno Sign Pty Ltd U Need It We Fix It Pty Ltd Unda Constructions Pty Ltd William Bamford WSP Services Pty Ltd

STUDENT Abdul Elkheir Adam Le Adam McDonald Afrim Malellasi Albert Borkowski Alex Mekha Alex Psarras Ameen Ju Boony Anastasio Kiparoglou Andrew Dike Andrew Emmerson Andrew Napoli Angus Anderson Anthony Bourne Anthony Reid Anthony Stevens Asha Roughy Bailey Fry Bailey Wilson Bassel Mulhem Bayley Stensbury Ben Ferris Ben Moyle Ben O’Byrne Ben Ure Billy Newton Billy Ruff Blake Watts Brad Kmet Bradley Williams Brandon Allan Brandon Wright Brayden Baguley Brayden Drake Braydon Welsh Brendan Clark Brittney Hecker Brock Little Brodie Bailey Brodie Yanner Bryce Day Bryden Eumel Callum Stevens Cameron Dyke Carl Houben Casper Arnold Charlie Taylor Chris Kowlki Chris Witchell Christian Koch

Christopher Davies Clayton Kingi Connell Jacobson Connor Galvin Corey Heurcu Corey Thomas Dacoda Morley-Gray Damen Cordell Daniel Campbell Daniel Kosky Daniel Tagi Daniel Tamblyn Darcy Geyer Darcy Lomas David Alello Dawson Viney Dean Cooper Dean Jones Declan Loughead Devon de Silva Dinah O’Donaghue Drew Garaia Dylan Bath Dylan Porter Eden Farley Elbron Bodagh Elliott Flawkins Emma Johnson Ethan Calway Ethan Kulkewycz Ethan McNee Fabian Lugli Florian Kaufmann-lepte George Drakopoulos Giulia Rotar Hakim Azizi Hakob Soreen Hameet Sing Harrison Chandler Harry Taylor Hassein Safar Hayden Davison Isaac Commadeur Ismail Unla Jack Bickford Jackson Hetherington Jackson Seipolt Jacob Berry Jacob Cam Jacob Davis Jacob Draper Jacob Johnson Jacob Jones Jacob Raftopoulos Jai Gauci Jake Ede Jake Flaherty Jake Parsell James Cark James Hasler Jamie Baxendine Jamie Dawes Jamie Tapner Jared Bolonis Jared Dwarznit Jared Redmond Jarrod Lenon Jarrod Monaghan Jarryd Hannan Jasen Fitzgerald Jason Ngawati

Jayden Collicoat Jayden Conlon Jerremy Ford Jessica Cockerill-Wright Joel Vearing Johno Beecham Johno Blyth Jolian Shlemon Jonathan Spelman Jordan Allen Jordan Masor Jordan Meade Josh Hunt Josh Pethybridge Josh Scott Joshua Bibby Joshua Costin Joshua Hoaimeyer Julian Pound Julian Rossello Justin Bateson Justin Cherrett Kade Stevenson Kade Swift Kalijah Asling Karthik Rajaram Kevin O’Sullivan Kieren Leech Kosta Tsorahidis Kyle Keane Kyle Lehmanh Kyle Peeters Kyle Sparks Lachie Atherton Lachlan Bell-Towers Lachlan Bull Lachlan Jetson Lachlan Monti Lachlan Reeves Lachlan Ronchi Leigh Sheilds Les McMullen Liam Atwell Liam Bartels Liam Birdsey Liam Jacobs Liam Smit Lneh Hsa Louis Marsters Lucas Buckingham Luke Augustini Luke Buckland Luke Coad Luke Garner Luke Gibson Luke Watson Lynden Cooper Mackenzie Hewett Majed Hirmiz Marc Bishop Marko Kulas Marus Treble Mason Dingfelder Mat Bradley Matt Cook Matt Ewert Matt Wootton Matthew Alvis Matthew Bailey Matthew Ferguson Matthew Sanders

Matthew Stahl Meg Harvey Michael Brown Michael Chopping Millie White Mitchell Bahker Mitchell Luck Mitchell Pingwall Nadim Haj Nathan Farley Nathan Hamilton Nathan Heard Nicholas Caldow Nicholas Vercoe Nicolas Reyes Beltran Nikola Predojevic Ogulcan (Olly) Salman Patrick Quinn Rachel Fulton Raj Karthik Nalini Mohan Renaldo Oraham Rhys Grant Riley Cracknell Rivers Borg Robert Adams Robert Huston Robert Wills Rod Dreis Rodney Alexander Royce Colgrave Ryan Fischer Sachin Willora Saifullah Husseinbhil Sam Christensen Sam Saxton Sarah Simmons Sayeed Hussaini Scott O’Connell Sebastian Robinson Shannon Lacey Sharif Ibrahim Sharon Wangke Shayne Manson Stefan Bontemps Stephen Bright Susan Bailey Tate Harris Taylor Wright Thomas Toma Thomas Warburton Thomas Waugh Tia Bennett Timothy Simmonds Toby Weinzierl Tom Heuston Tom Jenkins Travis Ogden Ty Stewart Tylar Seamer Tyler Birkbeck Tyler Blood Tyler Daniels Victoria McConachy Wade Murray Will McClure Yasin Nazar Yonan Yonan Zac Hancock Zach Savage Zachary Burjan Zhongmin Fan

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GREEN TECHNOLOGY: WHAT DOES IT MEAN FOR THE CONSTRUCTION INDUSTRY?

Which technologies are likely to produce the greatest environmental wins? And how can a conservative industry, slow to adopt new technology, keep up with the accelerating pace of innovation?

The means of production, nature of demand and character of construction projects is changing. How does sustainability help drive these shifts, and what technologies will define green construction practices during the next decade?

With big data, the Internet of Things, 3-D printing, nanotechnology, robots, artificial intelligence and the next industrial revolution makes it an exciting time to be in construction.

Parallel with these advances is the tremendous need and opportunity to move to a lower carbon economy. This move is already occurring, as evidenced by the Paris Climate Agreement and its recent ratification by the United States and China.

While the sheer scale of the construction industry, the long-time cycles of building projects, numerous stakeholders and the significant potential costs of mistakes can explain a lot of the industry’s reluctance to adopt new technology, there is another very tangible reason that can either drive or restrict any investment decision: the availability of reliable data on which to base decisions and provide accountability.

The technologies that stand to benefit the industry, economy and environment

the most are those that can provide clear reliable guidance for continuous improvement throughout the whole building life cycle.

BIM has already transformed the way design and construction documents are created, and while there are still practices where this has yet to become the norm, the productivity savings in design combined with less onsite mistakes and change orders means eventual ubiquity will be driven through natural selection. The businesses that embrace BIM will be more competitive and grow while others will likely fail.

The same reality exists for sustainability.

It is not an all or nothing, overnight industry transformation, but rather a more gradual transformation comprising many different technological and process leaps, both small and large.

The most basic promises of BIM are still continuing to be realised.

Comparatively, to great effect, the industry is only scratching the surface of what a truly information-driven paradigm looks like, especially as BIM starts to converge with advances in computational design, simulation, cloud computing, the IoT and machine learning all driving toward integrated generative intelligence for AEC. Take building energy use as a complex, yet also simple, example. The basic technology for building energy simulation has existed for 30 to 40 years, and traditionally has been limited to use on large complex projects where budgets support the time and expertise

required, and even then the impact has been limited. Now, building energy use has been fully BIM integrated and automated to analyse millions of potential design configurations in the cloud. This approach presents a clear indication of value, opportunity and even uncertainty–arming any design professional with the insight needed to drive the building toward its best possible performance.

Of course, it doesn’t end there.

High performance in design is not the end goal, nor is this limited to new construction projects. The most sustainable building is the one that’s already built. The refurbishment of the existing built environment presents a much larger and more important opportunity.

Maximizing performance in operation is the ultimate goal, and achieving this will require greater connections between the actual performance data and design tools.

That is to say, the Internet of Things, which exists today in the various forms of building automation systems technology will help close that loop, and provide the data needed to drive the new normal and leverage the natural highly competitive industry forces for the better.

Reprinted from Construction Executive’s “Tech Trends,” September 2016, a publication of Associated Builders and Contractors. Copyright 2016. All rights reserved.

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How Builders’ CRM Software Takes The Stress Out Of Getting Leads And Winning Projects When it comes to attracting more leads and converting them into long-term clients, there are only three reasons people do not choose your business.

Either, they are not sure if they want what you offer... they can’t afford your rates... or they don’t believe you will deliver what you promise.

A good builder’s Customer Relationship Management (CRM) system can help you to overcome these hurdles...so you can generate a steady flow of leads and convert them into paying clients in a more time-efficient and cost-effective way.

WHAT IS A BUILDER’S CRM SYSTEM? A Builder’s CRM system is a type of software that automates and optimises your lead generation and follow-up process.

It can help you to generate more leads, filter out time-wasters, and convert more enquiries into paying clients.

Some advanced CRM’s will also allow you to manage day-today tasks and client communications, so nothing important is forgotten or overlooked.

If you are struggling to get leads for your business... if you have no time in your day to follow up phone calls... or if tyre kickers are stealing hours from your week, then a builder’s CRM could be the solution you have been looking for.

HOW A BUILDER’S CRM CAN HELP YOU TO EDUCATE PROSPECTS WHO WANT YOUR SERVICES The first hurdle to overcome if you want more leads and sales is to educate people about what you offer.

To do this, you will need to follow up with them multiple times.

In fact, according to recent research, 4 out of 5 prospects need at least 5 follow-ups before they will buy from you.

A good builder’s CRM software can help you to automate and track this follow-up process to ensure that you convert the maximum leads into paying clients.

HOW TO FILTER OUT TYRE KICKERS WHO CANNOT AFFORD YOUR RATES

If you implement automated sales sequences into your building business, you will quickly notice that you have more time in your day. You will also find that prospects are a lot easier to convert when you finally talk to them on the phone.

Plus, you won’t have to worry about tracking communication because it happens in the background. You always know what you have said to prospects previously.

HOW TO CONVERT MORE PROSPECTS INTO LONG-TERM CLIENTS Lack of trust is the final reason that people do not buy from you. If a prospect doesn’t think that you can deliver what you promise, then they will never hand you their hard-earned cash.

Typically, a builder or one of his staff will talk to a prospect on the phone in order to build rapport and trust. However, this requires time and effort.

As I mentioned above CRM systems can send automated email sequences.

These sequences can be used to help you build trust and rapport by answering common questions, providing case studies of successful projects, showcasing awards you’ve won, listing client testimonials you’ve received, and detailing all the reasons that a prospect should choose you over your competition.

They can also prime prospects to buy, so that all you have to do is nudge them over the line when they finally call you on the phone.

In summary, today’s competitive environment has placed more pressure than ever before on builders to find, attract and convert prospects into long-term clients.

Without a CRM, this takes a lot of time, energy and effort. With a CRM, you can automate much of the process, so you can stop talking to people’s message banks and start focusing on what you do best -- building your business.

Finally, if you are looking for a good CRM, make sure it is specifically for builders. This means searching for terms like ‘Builders CRM’ on Google and filtering out any that aren’t purpose built for builders.

One of the biggest frustrations for many builders is tyre kickers.

A CRM system can help you to eliminate time wasters. It can do this by pushing all new prospects through an automated email sales process that qualifies them before they even talk to you on the phone.

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ROOFING

NEW TRENDS

IN RESIDENTIAL METAL ROOFING The roof of a home protects interior spaces from the elements and can help to control energy usage, but with so many different options available today, it is not always easy to know which material is the best for a property.

When sourcing for a new property, considering renovations for an existing structure or planning a new construction project however, it becomes vitally important to build a basic understanding of the most popular roofing materials in order to make an informed decision.

Choosing between roof tiles and metal roofing doesn’t have to be a difficult proposition; one just has to know a bit about the benefits and drawbacks associated with each product.

ROOF TILES: PROS AND CONS Roof tiles, of either terracotta or concrete, have been popular across Australia for decades. In the past, there were significant differences between these two materials which made it important for homeowners and builders to consider the relative benefits and drawbacks of each, but advances in manufacturing technology have created a more level playing field. These days, the differences between the two are negligible.

• Pros: Roof tiles provide a higher level of insulation, both thermal and acoustic.

They can help to reduce energy costs attributed to heated or cooled air loss, and to muffle most outdoor noise to create a quieter, more peaceful home interior. Most roof tiles will also carry a fifty-year weather resistance warranty,

• Cons: Broken or damaged tiles require prompt attention, as neglecting to obtain repairs can cause more extensive damage. Also, ridge caps for both concrete and terracotta roof tiles need periodic rebedding. Moss or lichen growth can be a common issue in some regions, though specialists can remove such growth with relative ease.

METAL ROOFING: PROS AND CONS The popularity of metal roofing has grown significantly across Australia, with many homeowners choosing it over the more traditional concrete or terracotta roof tiles. Depending on the aesthetic preferences and unique living situation, metal roofing may be an ideal choice for the residence or project. Still, to make an accurate determination, it’s wise to learn a bit more about metal roofing before making a final decision.

• Pros: The wide colour selection of metal roofing makes it easy to match any exterior colour scheme, and the natural characteristics of the material make it highly resistant to hail damage. Due to its classification as a non-combustible roofing material, it is also one of the most fire-safe options. Because most metal roofing is comprised of recycled material, it is also a strong choice for the ecologically-minded.

• Cons: Though most metal roofing products are treated to protect against rust and corrosion, it is a possibility. In some cases, metal can disrupt electronic device reception. Falling rain on metal can also be louder than it would be on tile surfaces, but there are ways to minimise potential noise.

Metal roofing and roof tiles offer unique aesthetic and practical qualities, so it is always a wise idea for homeowners to balance their expectations against the individual characteristics of each material.

While both options offer impressive durability, it is important to ensure that both tiles and metal roofing products are maintained effectively in order to ensure the safety and protection of the home. Working with a professional building inspection company can help you to spot any areas of potential damage or degradation.

Reprinted with permission by Houspect.

Copyright 2016. All rights reserved.

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FIELDERS STEEL Ideas to Shape the Future

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What is an ‘indemnity’ and when is a hire business likely to come across one?

By John Elmgreen, Executive Lawyer, Bartier Perry

Indemnity clauses are often found in commercial contracts.

In traditional legal language, an indemnity is a promise to ‘hold harmless’ and compensate the other party, should a particular event occur.

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A hire business might come across such clause for example in a cross hire situation (where you are asked to accept a standard form contract that contains indemnities you are to give) or where you might be hiring to a very large corporate who insists on using its own procurement contract terms under which you will give indemnities.

An indemnity means making good any relevant loss that arises. The events covered typically include a breach of the relevant agreement, but they might also extend to other events, including some over which the indemnifying party has no control.

For the party receiving the benefit, it is rather like being insured against the loss. It is therefore a very serious obligation and you would be justified in asking: why are you being asked to insure anything?

When considering an indemnity, you are really looking at a risk allocation issue: the party giving the indemnity is being asked to assume the risk of particular events occurring. Risk allocation between the parties to contracts is of course a fundamental part of contract negotiation, in which each party typically wants to push off as much risk as possible to the other party. That sounds good if you are the party that has all the power in a negotiation – you might be able to force the other party to accept all sorts of quite unreasonable risks – but where power is more equally balanced, asking the other party to accept a wide range of risks is likely to cause ‘push back’ from the other party – and extra delays and costs in reaching final agreement and a signed contract.

SO WHAT DOES AN INDEMNITY CLAUSE LOOK LIKE? They come in all shapes and sizes, but you might see something like this: The Contractor shall at all times indemnify and hold the Customer and its directors, officers, employees, sub-contractors and agents, harmless from and against any costs (including reasonable legal costs on a solicitor and client basis), claims, demands, expenses, losses or other consequences suffered by the Customer in relation

to any breach by the Contractor of this Agreement, or arising out of any act or omission, breach or statutory duty, negligence or willful default of its directors, officers, agents, employees or sub-contractors or of any other person for whose acts or omissions it is vicariously liable.

They often go further – for example asking for indemnity from liability in respect of death or injury arising in connection with the hired equipment whether or not you or your people have been negligent. Breaking it down…

The first part of the clause contains an indemnity against any loss arising from breach of the agreement. But why would you need such a right, if, as is well known, you can sue the other party for damages for breach? It is a very good question! Damages are limited by wellestablished legal principles and it is not every consequence, however remote or unforeseeable, that will at law result in compensation. Damages for breach of contract are designed to put the innocent party into the same position as it would have been in, had the contract been performed. But damages must be shown to have actually been caused by the breach, and are usually limited to those that can be said to have arisen naturally and in the usual course, or where, beforehand, some specific risk was made known.

If you are the Contractor, you might well say the indemnity clause should be deleted from the contract because, if there is a breach, the Customer’s rights under the general law are reasonable and adequate, and the Contractor should not be liable for anything beyond what well established legal principles would allow.

On the other hand, if you are the Customer, you might argue you want the Contractor to be liable for anything that arises from the breach of the contract, and damages should not be artificially limited by the principles of a court would be obliged to apply.

If the indemnity is to stay, then the next step might be to negotiate the insertion of words limiting the scope of the

indemnity in certain ways – eg: to ensure only certain sorts of losses are claimable (such as direct losses, and excluding certain types of consequential losses, like loss of profits), and to provide the innocent party has a specific obligation to mitigate its losses (an obligation that would arise under general contract damages principles but may not apply to a claim under an indemnity).

The second part of the clause contains an indemnity against losses arising from other causes. This indemnity is very broad. It might well be objected to on at least one of the following grounds: • Generally, the clause purports to go well beyond any breach by the Contractor of its obligations under the contract; • It purports to impose liability for ‘any act or omission’. That could mean the Contractor could be liable despite not having been at fault in any way; • It purports to impose liability on the Contractor for acts of others; ie: directors, officers, agents, employees and sub-contractors, “and certain others.

Why should there be a possible liability there for the Contractor that would go beyond the liability the general law would impose upon the Contractor for such matters?

A response to such objections might be to say a court would be likely to limit the literal interpretation of the clause in some ways – eg: to construe the words ‘act or omission’ to cover these only where a breach of a legal duty is involved, or to limit those for whom the Contractor is liable to those where the law would have imposed a liability anyway. But it is not safe to assume a Court will apply the indemnity in a way you might see as ‘fair’. Generally it will be taken by a Court to mean what it says, even if that makes you in effect a kind of insurer for your customer.

Sometimes, sensible limits on the scope of the indemnity can be negotiated and dealt with by wording added to the clause to soften its effects. You might consider a rider along these lines: “except to the extent the costs, claims, demands, expenses, losses or other consequences are indirect,

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consequential, special, exemplary or incidental loss or damage, and except to the extent that any of them is caused or contributed toby the default or negligent or wrongful act or omission of the Customer or the Customer’s servants or agents.”

Another difficulty that can arise with an indemnity is where a party such as the Contractor has liability insurance that may be prejudiced by the assumption of an obligation under an indemnity. A public liability policy can be expected to exclude liability assumed by way of contract, unless that liability would have existed in the absence of the contract.

Similarly with a professional indemnity policy – the following is a sample of the wording in such a policy: ‘the Insurer will not be liable for any liability assumed by the Insured under any express warranty, guarantee, hold harmless agreement, indemnity clause or the like unless such liability would

have attached to the Insured in the absence of such agreement.’

These limitations provide a strong basis for an argument by the Contractor to the effect it has all reasonable and prudent insurances – so why should it assume a liability under the contract beyond its liability at general law, against which it cannot insure itself?

The above provides a flavor of the negotiations and arguments that might take place in trying to modify a widely worded indemnity so it is far more reasonable. But is that practical?

If your commercial position is strong, the best answer to a request for an indemnity is often a flat ‘no’.

Where parties of about equal standing are negotiating a major commercial contract, the lawyers will be involved and it can be expected the limits of

indemnities sought will be the subject of significant negotiation. But all of that takes time and costs money!

If however, you do not have the luxury of time for such negotiations, you do not want to spend the money on such an exercise, and the other party is pressing you to sign, because these are ‘our standard terms, everyone accepts them’, you may feel you have no choice but to accept you have lost the risk allocation game if you want the business.

Where you deal with certain parties on a regular basis, you might consider negotiating with them an overall rider on your liability under any indemnities you are giving under their standard forms. But you had better make sure the person you are negotiating with has the authority within their organisation to make such an agreement, particularly if you are relying on just and exchange of emails!

Reprinted from Hire & Rental News, May 2016, official publication of the HRIA. Copyright 2016. All rights reserved.

This article should not be relied upon as legal advice; before using or considering any indemnity, first consult independent legal advice.

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G E E LO N G L I B R A RY A N D H E R I TAG E C E N T R E

KANE’S GEELONG LIBRARY AND HERITAGE CENTRE WINS ELEVEN AWARDS

THIS UNIQUE AND EXTRAORDINARY BUILDING AND THE INCREDIBLE TEAM THAT DESIGNED AND BUILT IT HAS ALREADY WON 11 AWARDS:

- 2016 MBAV Master Builder of the Year - 2016 MBAV Excellence in Construction of Commercial Buildings $30M-$80M - 2016 MBAV Young Builder of the Year – David Purcell, Project Manager - 2016 AIB National Professional Excellence Commercial Construction $10M-$50M - 2016 AIB Victoria Professional Excellence Commercial Construction $10M-$50M - 2016 AIA The Victorian Architecture Medal - 2016 AIA The Marion Mahony Award for Interior Architecture - 2016 AIA The William Wardell Award for Public Architecture - 2016 AIA The Regional Prize - 2016 World Public Library of the Year – shortlist of 4 - 2015 Concrete Institute of Australia – Victoria, Excellence in Concrete Award

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KANE’S GEELONG LIBRARY AND HERITAGE CENTRE WINS ELEVEN AWARDS

11 KANE CONSTRUCTIONS’ SUCCESS AND RECOGNITION CONTINUES TO SURGE, WITH THE RECENTLY COMPLETED $45 MILLION GEELONG LIBRARY AND HERITAGE CENTRE.

These awards include top honours with the prestigious 2016 Master Builders Association of Victoria Master Builder of the Year and Kane’s Geelong Library Project Manager David Purcell being recognized as Young Builder of the Year.

David’s recognition follows Kate Dawson’s award in the inaugural Young Builder of the Year in 2014 and Tim Fowler’s award in 2015. That’s three out of three for young Kane leaders, all participants in the Kane graduate program.

David and all Kane were thrilled at receiving multiple top honours at the MBAV’s recent awards night at Crown Palladium before an audience of over 650 leading builders and industry representatives.

David explained that providing an outstanding facility for the city of Geelong and the local community was Kane’s ultimate objective and the recognition of these awards was the

icing on the cake. “It means so much to Kane and to me that the dedication and great work by the entire Kane team is recognised by winning this award.

The team met and overcame all of the challenges thrown at them and delivered an exceptional building as a result.”

David’s experience as a Project Manager for Kane spans more than 13 years and includes the management of complex projects in Melbourne, Queensland and China. As part of the Young Builder of the Year accolade, David was acknowledged for his work on a number of exceptional projects such as the Australian Embassy in Beijing and several at Melbourne Airport.

Kane assigned thirty-seven-year-old David the responsibility to lead the team on the iconic Geelong library project based on this experience, his past successes demonstrated capability in managing highly technical and demanding projects.

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G E E L O N G L I B R A R Y A N D H E R I TAG E C E N T R E

His identifies the most significant technical demands of this building as: • Non-repetitive floorplans over nine levels • The design, documentation, manufacture and installation of geometrically shaped and curved glass fibre reinforced concrete (GFC) roof panels.

• Bespoke interiors and cutting-edge library facilities The iconic GRC and glass façade was part of Kane’s innovative Design & Construct submission.

Master Builders CEO Radley de Silva said that a successful new construction and major renovation of a heritage building was an enormous challenge, and believed that the community of Geelong had scored a big win with the help of David Purcell and Kane Constructions.

of the Kane project team and their impassioned approach to the overall project.

"The Geelong Library and Heritage Centre Project was a unique, complex and demanding building project,” Scott Cavanagh said. “The building's bespoke design, unique cladding and dome structure presented numerous challenges for the Kane team, all of which were managed with a professional and competent approach."

Located in the heart Melbourne’s second city, Geelong, the multi-award winning building is built on the footprint of a former building in Johnstone Park, and replaces and extends the old Library and Heritage Centre.

The existing centre remained fully operational throughout construction, yet

11

another challenge that the Kane project team successfully met.

The new Geelong Library not only provides access to information through printed collections, but also via the latest multi-media platforms. It also serves as a community hub in the centre of Geelong.

The $45 million construction showcases a distinctive domed edifice offering a compelling new space while simultaneously complimenting and reinvigorating heritage architecture.

The unique GRC cladding radically distinguishes the new from the heritage.

Approximately 550 panels were installed, including convex hexagon and pentagonal panels, fascia and gutter panels. The lightweight GRC panels are

“David demonstrates an admirable ability with the management of multifaceted, complex building projects and has clearly earned the trust and respect of his colleagues,” Mr de Silva said.

“I am impressed with his enthusiasm for his work and his grasp of technical and challenging aspects of the projects entrusted to him.

“David represents the important achievements of younger people in our industry’s workforce, and the pool of talent from which future leaders in Victorian building and construction will emerge."

“In addition to its striking form, the building’s respect for the original architecture of the old library makes the strongest impression,” Mr de Silva said. “On Master Builders’ 141st anniversary, we are very fortunate to have high-calibre projects such as this one to demonstrate the significance of Victoria’s building and construction industry and contribute to its distinguished heritage.”

Client representative Scott Cavanagh, Acting General Manager Strategy & Performance, City of Greater Geelong was also impressed with the talent

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Glass Reinforced Concrete, also known as GRC, is one of the most versatile building materials available to architects and engineers.

Composed principally of cement, sand and special alkali resistant (AR) glass fibres, GRC is a thin, lightweight but high strength concrete with many applications and can be cast into endless shapes in construction as pictured at the Geelong Library & Heritage Centre.

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manufactured off site in Adelaide with a secondary steel sub-frame, and bolted to the primary steel structure to form the domed façade and roof.

Working closely with the architect and specialist subcontractors, the Kane team successfully carried out the design detailing, manufacture, installation and certification of the façade.

David Purcell explains: “This is a highly architectural building and there was no opportunity to change the design,”. “Kane had a huge task developing the design and making it buildable, without compromising the architectural intent. We managed and documented various D&C elements.

It was essential for Kane to control the detail and encourage subcontractor involvement in development and detailing of the architects concepts, and to ensure that Kane and subcontractors could meet specification and warranty requirements, including the critical requirement of waterproofing. This is an award winning project because people recognise it as beautiful, unique, complex and demanding. Nothing was standard - it has a unique form, a bespoke façade and cladding and the highly complex dome structure, beautiful interiors and setting on the park

NE’S LONG RARY D ITAGE TRE NS VEN ARDS

“Kane accepted and efficiently managed latent conditions risk through well thought out construction planning, techniques and processes. This involved the steel and concrete columns and post tension floor slabs which are standard construction techniques, but the eroded spherical geometry and jagged floor slab edges presented a challenge to Kane. Large cantilevered sections of concrete floors on levels 3, 4 and 5 were suspended from the roof steelwork using stainless steel Macalloy bars.

“Other significant aspects of the façade were the D&C aluminum, stainless and glass façade and façade secondary steelwork. The zig-zag glazing system was developed by Kane with Inhabit Engineering. Kane developed methods for laterally restraining the glazing against the wind at each floor level and transferring dead loads to the spandrel beams.

“The extremely complicated building required numerous design meetings with the architect and subcontractors, where we came together to develop the design and ensure the architectural intent was maintained, all the while allowing the design to be buildable.

After winning so many awards for the construction of this nine level stateof-the-art facility, Kane Directors have been asked on several occasions where to from here for Kane and this awardwinning project team? It is certainly a good question considering they have now been recognised as having reached the industry’s pinnacle.

“We will continue to work at stretching ourselves, create new project opportunities and deliver for our clients to an even higher level,” David said.

“We are proud of our capacity to move forward with innovation and technology and we look forward to the future of building, not only in Victoria but across Australia and the region.”

11 David’s team has just commenced construction of the Melbourne Grammar School Science, Innovation and Technology Centre, designed

by Denton Corker Marshall. This is another highly architectural project with special D&C façade elements.

They are very excited to be working on a boomerang-shaped building this time, they don’t just do amazing spheres and domes. And they are off to Canberra on 24 November to compete at the Master Builders Association’s National Excellence in Building and Construction Awards at the Great Hall Parliament House.

Kane Constructions is a multi-award winning, privately owned commercial construction company active in all sectors of the industry. With a turnover in excess of $600 million and over 330 full time employees, the company operates throughout the east coast of Australia and overseas from offices in Melbourne, Sydney and Brisbane. www.kane.com.au | 03 8420 1200 658 Church Street, Richmond VIC 3121

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W H AT ’ S N E W

2015 Mercedes-Benz Vans Metropolitan Dealer of the Year.

Awarded to 3 Point Motors.

CUSTOM MADE CAVITY FRAMES

3 POINT MOTORS VANS SHOWROOM

CUMARU TIMBER RANGE FROM PORTA…

Joey now manufactures full height zero clearance frames which blend in seamlessly to the modern house design. With a full 10 year guarantee on parts and labour why would you use anything but an individually designed and built Joey cavity frame.

3 Point Motors Mercedes-Benz Vans have moved their business to move your business by opening a huge new dedicated MercedesBenz Van showroom in Fairfield.

The people who know and love timber

Joey are the custom cavity frame specialists and have been manufacturing in Melbourne for more than 48 years.

Our brand is synonymous with reliability, quality and service. A complete range of standard sizes are available in heights of 2040mm and 2340mm to suit standard door widths 520mm to 1220mm. Our range is available throughout Melbourne at superior door sellers and timber/ hardware outlets.

We specialize in custom built architectural frames. With assistance from our friendly professional staff we can design frames that will meet your requirements and excel your customers’ expectations. Finishes such as square set plaster, shadowline, Ezy Cav and architrave are available.

For more information contact: Sales: (03) 5990 1777 Website: www.slidingdoors.com.au

CUSTOM MADE CAVITY FRAMES

The large indoor warehouse facility boasts the complete line-up of Mercedes-Benz Vans with the range starting from an affordable $36,990 Drive-away for a Vito 111 CDI SWB manual.

In 2015, 3 Point Motors was recognised for providing outstanding levels of customer service and awarded the Mercedes-Benz Vans Metropolitan Van Dealer of the Year – an accolade bestowed on the dealership on numerous occasions.

The 3 Point Motors specialist Van team is headed by long-time Sales Manager Danny Cronin, with over 38 years of experience with the brand and a wealth of knowledge.

Contact Danny on 0415 317 000 or Resul Reshiti on 0430 955 551 Find the perfect van for your business at 3 Point Motors Mercedes-Benz Vans.

For more information contact Address: 459 Heidelberg Road, Fairfield Website: www.mb3point.com.au

Porta has launched its new timber range Cumaru, an attractive timber with interlocking grain that is high in durability and structural integrity, rated at F34 for beams (F27 posts).

This allows for a longer timber span and a reduction in the number of posts required, lowering the overall project cost and offering a premium hardwood result.

Cumaru does not bleed, allowing for immediate construction and installation compared to Merbau and other typical decking timbers. This eliminates the problems of timber staining onto pavers, rendered walls and around pool areas. Cumaru’s high density (1085 kg/m3 dry) also meets the specified density in AS3959-2009 for construction in bushfire zones where BAL 19 is required. It also features a greater resistance to termites and decay.

FSC certified, Cumaru timber is ideal for the harsh Australian conditions. It can be used in many indoor and outdoor applications from landscaping, marinas, civil works, walkways, verandas, pergolas, fencing, decking, stairs (internal/external), beams, cladding, indoor flooring, lining boards, beams and more.

Porta offers Cumaru in large profile sections, set lengths from 2.4 to 5.4m and in pieces, job lots and packs. Custom lengths and moulding profiles available on request.

For more information or to request a sample contact: Phone: 1300 650 787 Website: www.porta.com.au

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Master Builder Victoria

W H AT ’ S N E W

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D.C.W WaterProofing products are environmentally safe and non toxic, potable water approved, can be installed over wet surfaces, and withstand up to 13 bar pressure (130m head of water).

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Master Builders Australia Porta

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The D.C.W WaterProofing system is highly versatile and suitable for a variety of applications including: Internal living areas, Basement Waterproofing and Sealing, Retaining walls, Lift pits, Water Tanks, and Underground car parks.

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© 2016 USG BORAL. All rights reserved. The trademarks USG BORAL and INNOVATION INSPIRED BY YOU are trademarks of USG Boral Building Products or one or more of its affiliates.

FIBEROCK and AQUA-TOUGH are trademarks owned by United States Gypsum Company and used under license.