ADVOCACY

Master Builders WA operates under the direction of its board, the councils and committees to provide governance and develop policy on industry issues.

ADVOCACY

Photo above: 2021 Master Builders-Bankwest Economic Lunch. (L-R) Hon Ben Wyatt MLA, Paula West General Manager Inspired Homes, John Gelavis Master Builders WA Executive Director, Rocky Slater State Manager WA Badge Construction, Hon Sean L’Estrange.

Photo below: (L-R) John Gelavis Master Builders WA Executive Director, Paul Spadanuda General Manager at Oswald Homes and Residential Attitudes, Paul Graham Keystart CEO, Hon Michael Sukkar MP.

Master Builders WA has courageously met the challenges of this past year head on. Our proactive and persistent advocacy has seen positive outcomes for our members, with Western Australia (WA) witnessing a resurgence in economic activity and a healthy pipeline of work for our industry.

This year we developed the STRONG BUILDING STRONG WESTERN AUSTRALIA campaign for the State Election. The campaign launched on 15 February 2021 at a luncheon event where both (then) Treasurer Ben Wyatt and Shadow Treasurer Sean L’Estrange presented their economic strategies for the upcoming election.

This campaign included a set of key advocacy positions that would support the industry, which we hoped the incoming Government would adopt.

The advocacy platform highlighted policies aligned to five major categories; Building Safe and Productive Workplaces; Economic Settings for Stability & Growth; Infrastructure & Investment; Jobs & Skills for the Future; and More Small Business & Less Red Tape.

We have also ensured the initial critical work undertaken in the early days of the pandemic did not unravel – with WA maintaining essential service status for the industry and continued support to our members navigating the everchanging rules and regulations.

Even here in WA, and all these months later, we are still feeling the disruptions to global material supply chains and labour shortages as construction around the world spearheads economic recovery amidst restricted travel, manufacturing, working and export conditions. The 2020-21 financial year will certainly be remembered for the twists and turns. Despite the challenges, we have had tremendous success with our policy mandates and lobbying efforts. Master Builders WA has continued to fearlessly and continually advance our industry’s position on matters of importance and will continue to do so.

All these months later, we are still feeling the disruptions to global material supply chains and labour shortages as construction around the world spearheads economic recovery amidst restricted travel, manufacturing, working, and export conditions.

COVID-19 AND STIMULUS ADVOCACY

Stimulus Packages: Federal Homebuilder and State Building Bonus Our advocacy included providing recommendations and solutions with timelines for the Federal Homebuilder Stimulus, which had caused issues for members and industry.

In February 2021, we identified approvals from permit authorities being an issue. This arose due to the massive increase in activity since the stimulus measures were announced which swamped many councils with building permit applications.

We engaged with the City of Stirling to propose a solution for building applications (both new builds and substantial renovations), that were eligible for the Homebuilder Stimulus package. We developed a template letter to accompany these applications for easy identification and fast-tracked assessment.

COVID-19

Keeping The Industry Open Our primary focus was to keep members operational and ensure our sector remained an essential service. Our efforts kept 40,000 small and medium businesses open, and over 130,000 people employed. Constant work and discussions with the Department of Premier and Cabinet saw the WA building and construction industry remain operational even during the February, April and June 2021 lockdowns.

Michael Sukkar visits Master Builders WA In July 2021 the Hon Michael Sukkar MP visited the Master Builders Association of Western Australia for a special event with our board, councils and staff. The Minister for Housing extended his thanks at this event to every single member of our industry for their dedication and determination.

“The number of construction businesses who said we kept our people, we took a punt, we didn’t really know what the government’s response would be... we didn’t know what stimulus – if any – was coming... but we held on to our people, because to us they are families as much as they are employees. I don’t think there is any industry in this country that did it as much as yours. There is something special here. I am here to thank you for everything you are doing. We really appreciate it.”

The Minister’s visit was also an opportunity to discuss the challenges we face here in WA and work we are undertaking as the leading peak body to find solutions on behalf of the industry.

40,000 BUSINESSES AND 130,000 WORKERS PROTECTED

Photo below: Hon Michael Sukkar MP, Minister for Housing, addressing the staff and select guests at Master Builders WA Head Office.

Department of Finance: Building management and works Key priorities for Master Builders WA included ongoing advocacy to the Department of Finance through their Building Management and Works business regarding; suitable and reasonable approaches with tender awarding, understanding the current working environment and challenges builders face with the work pipeline, and working towards better processes for resolution of issues and subcontractor issues including project bank accounts.

We met with the Department of Finance regarding market conditions and challenges facing the construction industry on several occasions. Master Builders WA presented the challenges in the industry including commercial operations in the current COVID-19 cycle, rapid price/cost escalation and labour productivity.

We also discussed challenges around payment terms for labour and materials becoming shorter, complications of cashflow within the market, tender validity periods and the inappropriacy of the Department of Finance’s current procurement model.

Master Builders WA presented credible suggestions to support improvement of the situation and is working with the Department to develop and identify the implementation of improvements.

HomeBuilder Construction Deadline: Extension Master Builders WA lobbied extensively to have the Federal Government address issues which unfolded from the unprecedented demand stimulus packages instigated. These issues included trade shortages, time delays, and cost increases in building products.

In April 2021, the Federal Government answered lobbying efforts with Housing Minister Michael Sukkar and Treasurer Josh Frydenberg announcing an extension of the construction commencement deadline under the HomeBuilder program. It meant all HomeBuilder applicants had 18 months to commence construction from the date the contract was signed.

This 12 month extension, was welcomed by Master Builders WA and ensured all eligible applicants were not denied the grant for reasons outside their control. Western Australia’s Timber Crisis One of the most significant issues that Master Builders WA dealt with in the 2020-21 financial year was the timber crisis which is critically impacting current activity and causing uncertainty in future supply.

Our sustained advocacy on pine shortages has led to several critical meetings convened by Hon Mark McGowan MLA and Minister for Forestry Dave Kelly, MP with Wespine Industries Managing Director Patrick Warrand and Master Builders WA.

Our public advocacy has paved the way to secure an additional 12,000 tonnes of pine, over the next three months, for the Western Australian timber manufacturing industry, and building and construction sector.

The State Government also announced an investment of $350 million in new pine plantations in the Southwest, helping secure the long-term supply of local pine for decades to come in Western Australia.

Photo below: Minister for Forestry Dave Kelly MP at Master Builders WA member construction site to announce additional pine log quota for Western Australia. (L-R) Robert Shaw Director Daly & Shaw Building, Minister for Forestry Dave Kelly MP, John Gelavis Master Builders WA Executive Director and Aly Harper, Carpenter-Master Builders WA 2019 Apprentice of the Year winner.

REGULATION, COMPLIANCE AND SAFETY IN OUR INDUSTRY

Consultation on National Construction Code 2022 draft Through the Master Builders National Regulation and National Technical Committees we made a comprehensive submission on the National Construction Code (NCC) 2022 public comment draft. Our feedback focused on recommended amendments to the energy efficiency and condensation technical provisions.

One of the most significant changes in the draft regards the increase to home thermal performance from the current level equivalent to 6-stars NatHERS, to the equivalent of 7-stars. We believe the change would significantly impact building design, apartment configurations, and house layouts, immediately affecting the affordability of new builds.

We are acutely aware of Australia’s net zero objective and the sustainability of our industry and housing is vitally important; but the increased cost associated with changes needs to be assessed as a risk and mitigated accordingly. We are considering approaches which include a suitable transition period, taking into account the COVID-19 landscape. Action Plan for Planning Reform: Phase 2 A key policy mandate of Master Builders WA is to fasttrack development (planning) applications, particularly for residential builds. We continued to lead the industry charge for fundamental planning reform this year, making a comprehensive submission on Phase 2 of the Planning Reform Action Plan and participating in a closed round table session with the Minister for Planning.

We have successfully engaged with the largest metropolitan Council (City of Stirling) to develop and test a pilot fast-track system. The planning of the pilot system is underway with the City and Master Builders WA. The system aims to reduce the timeframe for planning assessments from 60 or 90 days, to just 30 days.

We hope to officially launch the system with the City of Stirling and the Minister for Planning in early 2022. It is then expected the Minister will seek to have the process embedded in legislation and rolled out across all councils.

This will be one of the most significant and beneficial planning reforms ever. Over time it will collectively save both industry and the public hundreds of millions of dollars in true costs.

Modernising work health and safety laws in WA Throughout the year we continued our advocacy and work on the progression towards the Modern WHS Act 2020, with Regulations expected to be finalised in early 2022.

Master Builders WA continues to assess the changes scheduled through the passing of the WHS Bill. Our submissions and advocacy work across industrial manslaughter and duties on safety service providers have guided our members as best as possible.

Building Act Provisions: Work affecting other land – BA20 and BA20A forms Master Builders WA has single handily lead advocacy to have provisions relating to work affecting other land in the Building Act reviewed.

We have lobbied intensively on behalf of members to enact change regarding the work affecting other land provisions of the Building Act 2011, including addressing concerns with the BA20 & BA20A forms. Master Builders WA has repeatedly called for the Department of Mines, Industry Regulation and Safety to undertake reforms including adopting the suite of provisions Master Builders WA has provided.

BA20 & BA20A REFORMS

Western Power and Water Corporation We have engaged with the Water Corporation and Western Power on the issue of safety, specifically that of contractors working in or around power and water assets on sites.

The focus of this collaboration has been to develop and distribute educational materials through a variety of channels, to better inform our industry and stakeholders of everyone’s responsibilities. This body of work is ongoing under our safety advocacy remit. Tropical Cyclone Seroja Recovery Following the devastation left in the wake of Tropical Cyclone Seroja, Master Builders WA played a key role in getting communities back on track. We helped to rebuild and supported our resilient members and communities. We also took part in collaborative discussions with key State Government agencies on technical matters including revisions to codes and standards.

Draft Procurement (debarment of suppliers) Regulations 2021 Master Builders WA continued our engagement with the Department of Finance throughout the year, with the regulations set to take effect in January 2022. We support the intent of the Debarment Regime in ensuring providers of goods and services to Western Australian government agencies conduct themselves in a fair, ethical, and responsible manner. A major focus has been on ensuring responsible suppliers can tender competitively and be successful; not disadvantaged by those who do not comply with the law.

DEBARMENT

CONTINUAL ADVOCACY FOR INDUSTRY, NOW AND FOR THE FUTURE

Industrial Relations Master Builders WA made a comprehensive submission addressing the proposed reforms to industrial relations laws including the Workers Compensation and Injury Management Bill 2021. This submission focussed on the recommendations made to modernise the WA workers compensation laws including the definitions of workers and insurance matters. We also highlighted that the government must consider the special characteristics of employment in the building and construction industry.

Department of Mines, Industry Regulation and Safety Engagement Master Builders WA maintained continuous advocacy efforts with the Department of Mines, Industry Regulation and Safety Engagement on a wide array of issues this year. In particular, addressing the media scrutiny of our industry, noting that often, the Department and Master Builders WA are contacted simultaneously for comment.

By collaborating on our messaging to ensure consistency and minimise scrutiny of our industry by media, we have established a way to balance our responses to customer stories and current strains in the operating environment, but not at the expense of our members and industry.

MASTER BUILDERS WA DMIRS

Home Indemnity Insurance The issue of indemnity insurance reform has long been a priority for Master Builders WA and in 2021 we continued to push for long overdue outcomes. Master Builders WA consulted extensively with executive stakeholders from the building and energy industries to collaborate on recommendations for home indemnity insurance reform.

A working group has been established through the Housing Council, to continue advocacy and press for appropriate changes to the scheme, balancing the needs of consumer protection with that of practitioners and contractors.

Advocacy Platform Our advocacy platform centers around five key themes Building Safe and Productive Workplaces; Economic Settings for Stability & Growth; Infrastructure & Investment; Jobs & Skills for the Future; and More Small Business & Less Red Tape. This past year we had great success, with many of our recommendations to government embedded in policy. We continue to push our advocacy, ensuring a strong building industry and an even stronger Western Australian economy.

Master Builders WA undertook an analysis of State electorates based on State electoral boundaries and 2016 Census data to understand the relative importance of the building and construction industry to local economies and communities, which allowed us to communicate the importance of our industry in a more targeted way.

Photo below: The successful adoption to many of Master Builders WA recommendations posed to State and Federal Governments with Hon Mark McGowan MLA and John Gelavis.

Top Left: Hon Mark McGown MLA at Master Builders WA inaugural Welcome Back to Parliament BBQ held at Parliament House.

Top Right: Hon Mark McGown MLA alongside Master Builders WA Board of Management, President and Executive Director.

Centre Right: Hon Rita Saffiotti MLA, Hon John Carey MLA, Master Builders WA Vice President and Board of Management.

Bottom Right: John Gelavis, Master Builders WA Executive Director.

Bottom Left: Hon John Carey MLA and John Gelavis, Master Builders WA Executive Director.

Master Builders WA inaugural Welcome Back to Parliament BBQ