On-Site Insight Edition 1 - 2008

On-site Insight February 2008 In This Issue

Life, Business & Sustainability in Building

ACT Private Sector Building Activity for 2007

In July 2007 the Master Builders Association of the ACT (MBA) held the inaugural National Remodelling Conference; this high profile event attracted hundreds of MBA members and very positive feedback, due to the quality of the international speakers. In particular, the response to the workshops delivered by Paul Winans has warranted a return visit for the Life, Business & Sustainability in Building Forum to be held at the National Convention Centre on Friday 11 April 2008.

Life, Business & Sustainability in Building Exposure to Sun May Cause Death Making Tax Easier

Sustainability in building is a key agenda item for both the Federal and ACT Governments. Our guest speakers will provide up-to-date information on sustainability techniques that will place you at the forefront of your industry in selling sustainability benefits to your clients.

Planning Reform Update Cadet Program New Guidelines for CPD Points

The Life, Business & Sustainability in Building Forum will include two high-quality training sessions presented by Paul Winans. These training sessions will be complemented by a trade exhibition and a lunch function with three guest speakers, including former Brumbies and ARU representative, Warwick Waugh. Warwick is a Partner of Girvan Waugh Commercial Remodelling, he has first-hand experience as a hands-on remodeller and is well qualified to promote the benefits of being a professional remodeller in this competitive environment.

What is Equipotential Bonding?

Asbestos Regulations Update Water Sensitive Urban Design

ACT Private Sector Building Activity for 2007

$120 $100

MILLION

$80 $60 $40 $20 $0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

The above graph and table below summarises private sector building activity for the various building sectors in the ACT over the past 12 moths.

The values for each month are depicted in millions of dollars.

New Homes (Residential) Additions and Alterations (Residential) Garages, Pools, Decks and Similar Structures Commercial Building Work Multi Unit

Jan 14.35 2.82 1.11 61.44 0.82

Feb 20.79 5.19 1.16 23.16 24.52

Mar Apr 20.99 32.45 5.37 7.17 1.48 1.13 61.02 119.28 15.26 48.24

May 33.07 5.54 2.64 17.43 1.03

Jun 38.46 6.55 2.78 60.83 1.26

Jul 21.75 7.67 2.92 55.64 2.37

Aug Sep 27.63 19.00 8.57 5.43 1.10 1.82 54.47 110.33 3.52 13.38

Oct 39.45 8.34 1.56 16.64 14.60

Nov 26.90 5.20 1.19 17.60 0.92

Dec 17.62 4.85 2.40 10.96 1.63

On-site Insight

Important Dates

February Monday 25 lf Day ociation Go ers Ass Master Build ntry Club Yowani Cou

March Monday 10 Canberra Day

arch Friday 14 M nce in Boral Excelle Builders and Master close ards entries Building Aw

ril g Forum Friday 11 Ap ty in Buildin ili b a in a st u &S Life, Business ay and Friday 30 M Apprentice ining

a ers Group Tr Master Build s Cadet Award

ne Friday 27 Ju

llence in d Boral Exce n a rs e ild u B Master ards Building Aw

Making Tax Easier The Commissioner of Taxation, Michael D’Ascenzo, recently launched the Australian Tax Office’s (ATO) Making it easier to comply 2007-08 booklet which outlines a range of initiatives that are part of the second phase of an ATO change program designed to make it easier for taxpayers to comply with the law.

The ATO has already implemented a range of initiatives under the change program utilising consultation, collaboration and co-design as tools to develop user-friendly solutions.

The new initiatives, to be rolled out from March 2008, include: • Replacing current registration, processing and accounting systems with a single system that will cover tax and superannuation products. Once the new system is fully implemented, most people will have a single account in which all their interactions with the ATO will be recorded.

• Improving the design and readability of letters, notices, statements and forms.

• ATO website – improved design, content, search facilities and more tools and calculators.

• E-tax – more pre-filled third party information.

• A new small business portal to be launched in 2009.

For more information visit the ATO website at www.ato.gov.au

Exposure to Sun May Cause Death Hundreds of thousands of skin cancers are diagnosed in Australia each year. A large proportion of these diagnoses are determined to be malignant melanomas. It has been estimated that 34,000 skin cancers and 200 melanomas are caused by sun exposure in the workplace every year in Australia. Employers and workers who work most of or part of the day outdoors are being encouraged to work safely in the sun to reduce the risk of developing skin cancer.

An estimated 1.2 million Australian outdoor workers face an increased risk of developing skin cancer due to their occupational exposure to harmful solar Ultraviolet radiation.

A past study found that men whose workplaces had a mandatory sun protection policy were more likely to protect themselves from the sun. Early detection is also an important part of minimising one’s skin cancer risks. The Cancer Council recommends outdoor workers be encouraged to regularly check their own skin for suspicious spots. It is also important that workers know what their skin normally looks like so changes can be recognised early, along with what to look for and what to do if they do notice something suspicious or are concerned about their skin cancer risk.

Protecting outdoor workers from skin cancer The Cancer Council recommends that all outdoor workplaces have a comprehensive sun protection program in place that includes: • Risk assessment of the UV exposure risk to all employees • The introduction and maintenance of sun protection control measures • Training and encouraging employees to work safely in the sun • A written sun protection policy • A process to determine the effectiveness of the program and identify changes that may further reduce exposure Sunscreen, hats and sunglasses are tax deductible if they are needed for protection at work.

The Cancer Council can assist local workplaces toward implementing effective sun protection behaviour amongst employees. For more information contact The Cancer Council ACT on 02 6257 9999 or visit the comprehensive SunSmart Outdoor Workers section on The Council’s new website at www.actcancer.org

On-site Insight Planning Reform Update The ACT Government has made a commitment to change the current planning system to make it simpler to use, faster and more effective. The new system will come into effect in early 2008. As a result of the change, the ACT’s planning legislation, approval processes as well as the structure of the Territory Plan are being changed. The new Planning System is targeted to commence on 31 March 2008.

With the introduction of the Planning and Development Act 2007 the ACT will be the first jurisdiction to adopt the nationally developed ‘leading practice model’ for development assessments based on five major assessment tracks: • • • • •

Exempt Prohibited Code Merit Impact

The Planning and Development Act 2007 was debated and passed in the ACT Legislative Assembly in August 2007.

The regulations will support the legislation. To obtain a copy of the draft regulations visit www.actpla.gov.au and follow the links.

The new Planning and Development Regulations under the Planning and Development Act 2007 and the Building (General) Regulation 2008 are currently open for consultation.

Some of the key benefits of the new planning reform system are listed below.

Changes

Details

Strategic environmental assessment

Government may initiate high level assessment prior to major land grant or major plan variation Facilitates community input and improves accountability

New development application track assessment system

Easy identification of DA assessment path

DA amendment process

Establishes when amendment application can be made and process the amendment must follow

Changes

Details

Territory Plan and development assessment process applies to use of land and buildings

Makes it clear that territory plan and assessment process can apply to use (as in other jurisdictions)

Provides the community with certainty that the amendment process cannot be used to substantially change a development proposal

Existing lease authorised uses not affected DA not required for lease authorised uses if building work (that requires a DA) is not involved

Development approval exemptions clarified and expanded including exemption single dwellings in new estate areas

Increased range of exemptions means reduced time and cost for proponent

Development assessment timelines

Applicants have greater certainty as to the time assessment of a DA is likely to take

Frees up Government assessment resources for remaining development applications Greater consistency between development approval and building approval exemptions

Code track matters assessed in 20 working days Entity referral process

Statutory time limit (15 working days) Entities bound by advice No advice within time limit is deemed as support for application

Time limit for DA 6 month limit removed approval Allows ACTPLA to make decisions on large scale complex DA which might otherwise have to be heavily conditioned or refused Appeals

Eligibility requirements for third party appeals – material detriment No first or third party appeals or reconsideration process for Code track DAs (applicant can appeal conditions)

Transparent and consistent DA process Efficient allocation of assessment resources

Development assessment and leasehold administration work more closely together

Environmental Impact Statements

Transparent process for undertaking an Environmental Impact Statement Scoping process permits statement to be tailored to requirements individual case Works with the EPBC Act commonwealth requirements

Rules and criteria in Codes

Clearer guidance on assessment requirements and provides options for the applicant in designing their proposal

AN INDUSTRY UPDATE FROM THE MASTER BUILDERS ASSOCIATION OF THE ACT

On-site Insight Changes

Details

Changes

Details

Leasing

More transparent criteria for direct sale of leases

New development tables

Clarifies the minimum assessment track, assessable and prohibited development, and the applicable codes for a DA

Increased regulation when advising on BA application referrals

ActewAGL and fire brigade gain a veto power over BAs, thus helping to prevent BAs reflecting work that contravenes relevant laws

Clearer rules and improved accountability for granting of concessional leases Notation of concessional lease status on title New procedures to permit LTO to note use approvals and other matters Planning reports possible for major leases Compliance requirements

New compliance mechanisms protects interests of community and individuals eg. prohibition notices Clear and transparent complaints process

Incorporates Solidates and simplifies existing planning controls planning guidelines, neighbourhood and master plans

Documents required on register clarified

Technical amendments

New offences and increased penalties

Public Register

Residential floor plans exempt (privacy, copyright) Fees and charges

Fee structure aligns with development assessment tracks

Certifiers can issue a BA for DA exempt dwellings

Certifier will be a one-stop-shop for approvals for DA exempt dwellings Saves BA time and construction holding costs Certifiers can work with BA applicants to achieve DA exemption

Deregulation of low-end of construction industry

Prosecutions for certain breaches of relevant laws prevented if referral entities’ advice is followed (advice gives limited immunity)

Size of BA exemptions widened, saving greater than $1000 average per building No need for certifiers, plans, BA, builder licences, inspections, surveys or certificates of occupancy and use for most non-habitable buildings and structures up to 36m2 floor area, eg. two car garages and smaller

Increased regulation of building certifiers

More reliable decision making, commensurate with certifier’s increased responsibility for vetting plans for DA exemption

Rectification order power clarified

Provides certainty that orders requiring rectification of substandard and unlawful construction work are enforceable even if Government has approved or passed the work Responds to an ACT Supreme Court decision to the contrary

Certain types of plan variations can go through a quicker process

Industry Training Strategy, New Planning System Implementation ACTPLA is committed to ensuring that industry is able to gain a full understanding of the implications of Planning System Reform and more importantly how it works in a practical day-to-day sense. ACTPLA in partnership with the Master Builders Association will be delivering a number of training programs to assist the industry in gaining a better understanding of the new system. If you are interested in attending the training please contact the Master Builders Association on 02 6247 2099.

Implementation and transition Builders, Architects and Designers please note the following implementation and transition provisions: • Planning and Development Bill 2007, Regulations and Territory Plan take effect on 31 March 2008 • DAs lodged before 31 March 2008 will be processed under the Land Act • Decisions before the AAT the repealed Act including the Territory Plan continue to apply for the purposes of deciding the application • Approvals under the Land Act remain in force • Approvals may be extended once under the Repealed Act if the application for extension is made before the approval expires, and within six months after commencement of the new Act

On-site Insight Cadet Program In December 2007 the first four cadets to complete their Diploma of Building and Construction (Management) graduated and all four have since enrolled in and commenced their Advanced Diploma program. Another six cadets are about to complete their diplomas. In 2008 four of our cadets have successfully applied for entry into the University of Canberra Building and Construction Management undergraduate degree course. The senior group of cadets, originally all of whom were employed

by Master Builders Association (MBA) Group Training and hosted out to industry, have all now been employed by their hosts.

This course began only three years ago at MBA Group Training ACT and we have come a long way since that time in terms of the productivity being demonstrated by the senior group of cadets and the demand by our employers for additional cadets in 2008. Successful cadets become, amongst other roles, Project Managers, Contract Managers, and Estimators.

In 2007 we invited employers to participate more fully in the cadet program and we have had a number of senior managers deliver specialist training in their own unique niche areas since that time and this has proven popular with employers and cadets alike. Employers have enjoyed the rigour of the cadet enquiry and cadets like the diversity of opinion and practice offered by a variety of views.

The Advanced Diploma cadets will undertake a two-day course with ACTPLA as a part of their fulfilment of the qualification as well as present seminars and develop a formal research proposal. Participating employers will be invited to work with MBA to formally assess these outcomes before the Advanced Diplomas are awarded. These activities will prepare the cadets for ongoing educational requirements at University and bring the quality of their training to a level where the industry can see how much they have learned in the three to four year program.

We call the learners ‘cadets’ when they graduate from the Certificate Four courses in Contract Administration, Site Management and Estimating as up until that time they are ‘trainees’ with a very strong administrative flavour to their training and work deployments. At Certificate Two level, when they first come to the MBA Group Scheme, it is much like ‘broom time’ for our trade apprentices where trainees learn all about the workplace, and overview the skill requirements they will need to progress into the cadet career pathway.

We have maintained a complement of 26 cadets for nearly three years now and the demand for additional cadets presently exceeds our ability to fill such vacancies.

Alongside trainers, cadets are the current occupational group we are having the greatest difficulty recruiting to meet industry needs.

We intend to have an ‘Expo’ in early 2008 directed specifically at year 11 and 12 students. We will engage interested employers and school students in the capital region to bring them together for presentations, ‘trade’ shows, and a midday barbecue with the aim of attracting young women and men into the cadetship program and partnering them in the final stages of the secondary education so that they leave can directly enter into our cadet training programs, after leaving college.

In the past placing advertisements in the newspapers has not produced useful results and we now know that word-of-mouth is the best way to attract young people into the program. We are also aware that often young people have incorrect preconceptions about the building and construction industry. Our intention with an Expo is to dispel these, and generate interest in career structures where young people can find stimulating work, attractive remuneration and a diverse and safe working environment.

If you know of anyone who is interested in entering the building and construction industry in the para-professional area and building a career with great opportunities then please contact Kalli Leister, Group Training Centre on 02 6280 9119.

New Guidelines for CPD Points For NSW Building Licence holders there are changes to the Continuing Professional Development (CPD) requirements under Section 40 (2D) and (2E) of the Home Building Act 1989.

As of 1 January 2008 NSW Builder License holders must earn a minimum of 12 CPD points in the 12 months prior to the renewal of their licence. If you accumulate more than 12 points in one year you can carry forward a maximum of 11 CPD points to the next year.

You must keep records of CPD point earning activities for a minimum of 3 years.

You now cannot receive CPD points for simply being a member of a Construction Industry Association nor for the purchase of the BCA. The transitional arrangements in place state that the new requirements start when you renew your licence or if you have a 3 year licence, on the anniversary of the date your licence was renewed. Up until that point the old 25 CPD point’s requirements must be met.

For more information on the new requirements contact Office of Fair Trading or go to www.fairtrading.nsw.gov.au and follow the links.

AN INDUSTRY UPDATE FROM THE MASTER BUILDERS ASSOCIATION OF THE ACT

On-site Insight What is Equipotential Bonding?

Asbestos Regulations Update

As of 1 July 2008 the new AS/NZS 3000 wiring rules requires the earth bonding of reinforced steel in concrete slabs located under Wet Areas.

The Transitional Provisions for mandatory asbestos-related qualifications have now been extended to allow occupations involved in the removal and assessment of asbestos until 1 January 2009 to obtain the necessary qualification.

Basically what this means is, that at two points in the slab an electrical bonding point should be brought up prior to pouring the slab so that it will protrude into the timber frame or internal brick wall (see diagrams). This can be done by a Builder, steel fixer or concreter. It will enable an electrician to connect an earth clamp on to one of the points so that the slab mesh will be earthed. The second bond point is left as a test point to allow an electrician to test the complete earth bonding of the entire slab mesh.

The bond point should be made from a cranked length of reinforcing steel, tied at least 3 times to the slab mesh and protrude a minimum of 150mm vertically into the wall frame to ensure easy access by an electrician. This rule will also apply to multi unit and commercial construction. A blanking plate should be used for access to the bond point.

BOND BOND POINT POINT

WET WET AREA AREA

Visit www.legislation.act.gov.au and follow the links if you require further information on the licensing qualifications.

Water Sensitive Urban Design WaterWays the Water Sensitive Urban Design General Code will come into effect 31 March 2008 with the new planning system.

The introduction of WaterWays will:

WET WET AREA AREA TEST TEST POINT POINT

If If plumbing plumbing runs runs under under garage garage slab, slab, garage reinforcing garage reinforcing is is to to be be included included with entire entire earth earth bonding bonding slab slab with

• aim to reduce mains water consumption in homes built or redeveloped after 31 March 2008 by 40% (calculated on pre-2003 values) • require suburbs, subdivisions and developments to better manage stormwater quantity and quality What does this mean for your business?

Figure 1 – Typical floor plan

150mm 150mm MINIMUM MINIMUM

These transitional provisions do not apply to prescribed occupations eg. tradespeople that work with asbestos or disturb asbestos. These prescribed occupations must complete the approved course that is currently being delivered by the Master Builder Association. If you are a trades person and you have not completed the above course please contact the Master Builders Association to register.

• You will be required to comply with new government policy and standards • You are encouraged to incorporate new technology and practices

150mm 150mm MINIMUM MINIMUM

The new code applies to:

Integral Integral slab slab section section Footing Footing slab slab section section

Continuous Continuous slab slab section section

• development of new residential neighbourhoods and estates • re-development or in-fill development within the existing built environments • multi-unit housing, institutional, commercial and industrial developments To obtain a copy of the new code, go to www.actpla.act.gov.au and select publications.

Figure 2 – Typical slab cross sections

Free to members 5 March 2008 4.30 pm – 7.00 pm Contact Norma on 02 6247 2099 to register

Master Builders Association of the ACT 241 Northbourne Ave Lyneham Canberra ACT 2602 Tel: (02) 6247 2099 Fax: (02) 6249 8374 canberra@mba.org.au www.mba.org.au 00017

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