2009 - 10 Master Builders Association of the ACT Annual Report

ANNUAL REPORT 2010 COMMERCIAL | PROFESSIONAL | CIVIL | RESIDENTIAL | SUB CONTRACTORS

Master Builders Annual Report | ACT

EXECUTIVE & PEAK COUNCIL 2009/10 Executive & Peak Council: • Ross Barrett – President & Peak Council Chairman • Simon Butt – Treasurer & Peak Council Member • Sam DeLorenzo – Chairman, Commercial Sector Council & Peak Council Member • Stephen Wise – Alternate, Commercial Sector Council & Peak Council Member • Peter Middleton – Chairman, Civil Sector Council & Peak Council Member • Michael DeSimone – Alternate, Civil Sector Council & Peak Council Member • Peter Fairburn – Chairman, Subcontractors & Suppliers Sector Council & Peak Council Member • Grace Ferreira – Alternate, Subcontractors & Suppliers Sector Council & Peak Council Member • Hans Sommer – Chairman, Professional Sector Council & Peak Council Member • Rob Purdon – Alternate, Professional Sector Council & Peak Council Member • Andrew Kerec – Chairman, Residential Sector Council & Peak Council Member

Other Peak Councillors: • Mark Bauer - Peak Council Member, Commercial Sector • Micheal Ensor - Peak Council Member, Commercial Sector • Valdis Luks - Peak Council Member, Commercial Sector • David Oliver - Peak Council Member, Commercial Sector • John Wilson - Peak Council Member, Suppliers & Subcontractor Sector • Richard Corver - Peak Council Member, Residential Sector

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Master Builders Annual Report | ACT

CONTENTS Executive Council.....................................................................................................................................2 Presidents, Executive Directors, Honorary Members & Life Members...................................................4 Industry Representation...........................................................................................................................5 President’s report.....................................................................................................................................6 Peak Council report..................................................................................................................................7 Executive Director’s report.......................................................................................................................8 Treasurer report......................................................................................................................................10 Master Builders Australia report.............................................................................................................11 Sector Council reports ..........................................................................................................................12 Director Industrial Relations report........................................................................................................16 Occupational Health & Safety ...............................................................................................................17 Master Builders Fidelity Fund & Skills Centre Building Fund report......................................................18 Master Builders Group Training report...................................................................................................19 2010 Master Builders & Boral Excellence in Building Awards...............................................................20 2010 Events............................................................................................................................................22 2009 – 2010 Financial Report.................................................................................................................24 Membership Anniversaries.....................................................................................................................31

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Master Builders Annual Report | ACT

HISTORY PRESIDENTS 1949 - 1954

F J Watters

1999 - 1999

J A Haskins

1954 - 1956

D C Smith

1999 - 2001

S J Pinter

1956 - 1958

J B Kennedy

2001 -

R D Barrett

1958 - 1959

C Burrows

1959 - 1960

F A Somes

1960 - 1962

P R Armstrong

1962 - 1963

T H Blow

1963 - 1965

G A Anderson

1965 - 1967

C F Moore

1967 - 1969

L V O’Hara

1969 - 1971

A R Marr

1971 - 1973

A C Williams

1973 - 1975

W I Plant

1975 - 1977

F J Hegerty

1977 - 1977

W I Plant

1977 - 1978

G A Jones

1989

D Andrew

1978 - 1980

F J Quinn

2007

D P Dawes

1980 - 1982

F J Marr

2009

F J Gillingham

1982 - 1983

C Gustavson

1983 - 1984

J Pfeiffer

1984 - 1986

J K Hindmarsh

1986 - 1987

C T Spring

1987 - 1988

M E Milne

1988 - 1989

J J Hanrahan

1989 - 1991

R Winnel

1991 - 1993

K J Bromfield

1993 - 1998

J A Haskins

1998 - 1999

T J Rodgers

LIFE MEMBERS 1981

T H O’Connor

1984

L V O’Hara

1984

F J Quinn F J Marr

1993

R Winnel

1995

P J Murphy

1998

J A Haskins

2002

J H Hailey

2007

R D Barrett

Honorary Members

EXECUTIVE DIRECTORS 1964 - 1980

D Andrew

1980 - 1983

P M Berents

1983 - 1986

E M Lonie

1986 - 1987

F J Gillingham

1987 - 1989

R Winnel

1989 - 1990

G Williams

1990 - 1998

B D Bryant

1998 - 2007

D P Dawes

2007 -

J R Miller

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Master Builders Annual Report | ACT

Master Builders Industry Representation

Master Builders are represented on the following Industry bodies in the ACT and Nationally.

ACT ABCB Commercial & Residential Energy Advisory Group

University of Canberra - Bachelor of Construction Management Advisory Committee

ACT Skills Commission

University of Canberra - Building & Construction Reference Group

ACT Tertiary Taskforce Review ACT Work Safety Council ACT WorkSafe Construction Industry Advisory Group ACTPLA Asbestos Advisory Board

Vocational Education Training Advisory Group World Skills ACT Canberra Business Council Consultative Committee

ACTPLA Building Regulations Advisory Group

Canberra Business Council Planning Infrastructure Taskforce

ACTPLA Commercial Advisory Committee

East Lake Community Reference Group

ACTPLA Industry Monitoring Group (Planning)

New Employment Opportunities

ACTPLA Planning & Development Codes

Industry Reference Group

ACTPLA Residential Advisory Committee

NATIONAL

ACTPLA Sustainability Initiatives Progress Group

Master Builders Australian Board

Building Quality Review

Audit Committee

Canberra Builders Supply Merchants Association

Constitutional Review

Construction & Property Services (Construction qualifications)

Contract Committee

Construction Industry Advisory Group on the OH&S Handbook Construction Industry Forum on Best Practice Water Use Construction Industry Long Service Leave Authority Construction Industry Training Council Occupational Health & Safety Council (Ministerial) Procurement Advisory Council Training Fund Authority

Executive Director’s Advisory Industrial Relations Membership & Marketing Committee National Residential Builders Council National Training Advisory Committee OH&S Council CCF CEO Committee CCF National Board

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Master Builders Annual Report | ACT

PRESIDENT This last year has generally been a good one for the building and construction industry and for our Master Builders. The ACT economy has performed well, infrastructure spending continued at a high level, and our Association’s financial position is sound. The one significant disappointment has been the continuing imbalance between the residential land supply and the demand which is still having an adverse effect on many of our members.

John’s report to the AGM, and my Peak Council report give details of developments since the last meeting and the financial reports are there to be read. So I conclude this brief report by taking the opportunity to express my sincere thanks to all of the Master Builders staff for their contribution to our organisation and I also thank those members who volunteer their time to sit on our boards and committees to help progress the issues of our members and our industry.

As the peak industry organisation in the Territory we have continued to have a strong voice at all levels of influence. Ultimately we are about representing our members’ interests so it is important that we continue to conduct ourselves appropriately. I have been involved with the Master Builders for many years. For all of this time, it has been a continuing feature of our organisation that we play an instrumental role in not only representing our members but also in assisting them to increase their knowledge base. Our ability to influence the debate and policy outcomes in the areas of our priorities is not only of significant importance to our members and their businesses but also to our industry and to the ACT economy overall. I believe we are at the forefront in educating and informing our members of the ever changing issues which confront our industry.

The year ahead will present us with the usual challenges plus some unexpected new ones but I am confident that the Master Builders is well placed to meet them. So overall 2010-11 should be another good year for our industry.

Ross Barrett President

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Master Builders Annual Report | ACT

PEAK COUNCIL Members of the Peak Council have been confronted with a minefield of issues to consider and change foisted on the building and construction during the 2009-10 financial year. Many of the issues and change have come via both levels of government, federal and territory. Some of the issues have also arrived from within the industry.

The major issue that has arrived from within the industry has been related to the charges of poor quality of building work. The Peak Council was involved in the Master Builders submission to the ACT Government forum held with industry and concerned building owners representatives. Whilst there was a great deal of negative publicity surrounding this matter during the year, the opportunity to workshop the issue and provide a considered and measured response back to the government placed Master Builders ACT in a strong position to help implement change. It is important to note that not all of the problems surrounding quality of building work emanated from industry.

The Council also paid close attention to the significant changes that were taking place on the industrial relations front. Award modernisation, the new Fair Work Act and consideration about the future of the Australian Building and Construction Commission were all impacting on local industry and input was provided by Council members. The role of the Federal Safety Commissioner and auditing arrangements were also considered by Peak Council and provided the Director of Industrial Relations with information to take to national meetings where these critical issues were being discussed and where policy is being developed.

The members of the Council also deliberated on matters relating to changes to the ACT Work Safety Act in addition to discussing proposed harmonization of Occupational Health and Safety laws across Australia. With harmonisation proposed for a January 2012 implementation, a number of matters are still to be resolved. Another major change for local industry and one that the Peak Council had interest and input on was the implementation of the Security of Payments legislation. Master Builders ACT was called on for input on a number of occasions during the preparation and implementation of the new Act. Further planning changes, land release and training were also covered in Peak Council this financial year. The Council also continued its role as the final approval body for new members of the Association.

Like all of our committees and councils, the Peak Council is made up of very busy people and on behalf of all of the members of Master Builders ACT, I thank members deeply for their interest and wonderful contribution to the continued well being of our industry. „„ Ross Barrett Chair

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Master Builders Annual Report | ACT

EXECUTIVE DIRECTOR In stark contrast to the mood that beset the industry in 2008-09 with the onset of the world financial turmoil emanating largely from the US, the past financial year provided a boost that was not entirely expected but most welcome. There is a raft of financial data that supports the improved position and this has been reflected in the workload experienced by most members. The key challenge is to see this activity continue over the next few years and beyond.

In reviewing the activities of the Association over the past financial year, there have been many areas in which the executive, management and general membership have been engaged. It is not hard to pinpoint the most pressing areas for the majority of our members. Industrial relations, workplace reform and occupational health and safety have been key touch points. Next to those, planning remains a constant thorn in the side of industry, although there have been many gains over the past few years.

The federal labor government’s industrial relations reform agenda began to take full effect in the last year and with the new Fair Work Act and award modernization being implemented in near tandem, created a whole new operating environment for the industry. In conjunction with the reform, the door was opened for far greater union involvement in the conduct of businesses. Even at the time of preparing this report, so much remains up in the air on the industrial relations and workplace relations front. Much of the change is more fully covered in the report by our Director of Industrial Relations.

The ACT Government continued its roundtable program during the last year to receive information that would help it respond to any fallout from the Global Financial Crisis. Planning continued to be high on the roundtable agenda and Master Builders maintained its position of providing written material to the roundtables rather than just talk and walk. This was particularly vital during a forum convened by the government on building quality. These papers have

been well received by the ACT Government in guiding their decision making on key issues including continued planning reform. We maintain our representation on the Industry Monitoring Group on planning which was established in response to one of the early roundtables.

Planning is always and continues to be a contentious issue depending which side of the fence you sit on.

You have the residents on one side who are always suspicious of any development and you have the builders/developers on the other side endeavoring to maximize their financial investment and minimize holding costs by gaining approvals in a timely manner.

The Master Builders, through its involvement with the Industry Monitoring Group (IMG), has worked collaboratively with the ACT Planning and Land Authority (ACTPLA) over the past twelve months to ensure that industry and the relevant agencies streamline processes wherever possible to deliver better outcomes for the industry.

The Master Builders acknowledge that ACTPLA has delivered significant efficiencies to the industry, especially through the expansion of the exempt approvals process, which has resulted in over 2,000 single residential developments not requiring approval through ACTPLA. These types of developments have been approved through the private certification process which in turn delivers speedier approvals and minimizing holding costs.

Through the IMG development application, statistics are constantly discussed and processes reviewed.

ACTPLA also introduced electronic lodgments for DAs over the past year and this has increased to 50% of all applications lodged to end of June 2010. This electronic lodgment process will also be expanded to include the BA process. This should result in further efficiency gains for the industry.

The Construction Services Branch of ACTPLA also has close liaison with the Master Builders through it’s auditing functions of builders, building certifiers

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Master Builders Annual Report | ACT

and other licensed occupations. We will continue to liaise with this branch to further improve processes in the industry especially relating to quality of building work issues and further refinement of issues associated with demolition and asbestos removal.

A further outcome of the ACT Government roundtable program was the establishment of a new Industry Reference Group. This group had its genesis from a paper presented by Master Builders on procurement that the civil sector provided significant input on. The IRG has been reviewing case studies of both good and bad practices around the procurement process, to identify blockages in capital works delivery. This is particularly important to the ACT Government because its significant land release program rests on the procurement process.

Two agencies that impact heavily on our membership are ACT Procurement Solutions and ActewAGL. Senior management and appointed sector council members meet with the Chief Executives and senior staff of both these bodies on a quarterly basis. A number of issues are resolved in both of these forums.

Whilst we would like progress to be quicker on some issues, Master Builders appreciates the goodwill and participation of the agencies and the commitment shown by the high-level representation of both entities.

The executive, Peak Council and Sector Councils all continue to meet on a regular basis. There are reports from the Sector Councils on their activities further on in this Annual Report. Common interest matters that have occupied the agendas at these meetings over the financial year have included the introduction of the ACT Security of Payments scheme, industrial relations issues, ACT Work Safety legislation, proposed government codification of Change of Use charges, planning reform and training.

Master Builders Group Training has enjoyed a solid year of operation. The uncertainty confronting training with the global financial turmoil hitting at a key decision-making time meant risks needed to be

minimized. The board, senior managers and staff have steered us through the difficulty with diligence and hard work. Our training operations continue to expand and we see it as absolutely vital to our industry’s future that members take advantage of and support our training efforts and particularly the engagement of our apprentices through the group scheme.

Our events and functions are an important part of the engagement with industry and showcasing the great work of our industry to the public. This year’s Excellence in Building Awards was an outstanding success and the support of major sponsors Boral and all of our other sponsors is recognized with great appreciation. There is also much support required in delivering our President’s Lunches, industry dinners, trade nights, apprentice awards, golf day and annual dinner to name a few of our functions. We are fortunate to have so many great industry partners.

There are so many individual members who give incredible amounts of their time to help form Master Builders policy positions and provide input to critical debates around a myriad of things that impact on the day-to-day operation of local businesses. Too often this goes unnoticed and the impact of that input is not understood or appreciated. I offer my personal thanks to all of those who are on our various committees, councils, reference groups and associated bodies.

Finally, I thank all the staff of Master Builders and Master Builders Group Training for their hard work throughout the year. We look forward to continuing that work during the next year in supporting the needs of our members.

John Miller Executive Director

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Master Builders Annual Report | ACT

TREASURER In handing down my first report as Treasurer last year I noted the concerns of industry with the onset of the Global Financial Crisis in 2008. The forecasts confronting all of us were gloomy. It is most pleasing in that context to report that the situation in Australia and subsequently on our operations have not been as dire as might have been expected. Our ultimate position was always going to require tight management and constant scrutiny, basics that need to be attended to in good times and bad.

Notwithstanding the consolidated financial report we are required to produce to reflect the relationship between the Master Builders Association of the ACT and Master Builders Group Training, I am able to provide an overview of the activities and performance of both entities during the 2009-10 financial year.

Master Builders Association of the ACT From a consolidated surplus of $739,785 in 2009-10, a surplus of $198,698 has been recorded for Master Builders ACT as the parent entity for the financial year ending 30 June 2010. This was above budget expectation although was impacted on late by the requirement to formally recognize the completion of the new building formally in the accounts in this financial year. In a volatile economic climate such as currently exists, the executive committee has determined that borrowings by the Association should be kept at a minimum. We retain around 400m² of space on the upper level of our building with income potential.

Expenditure at an operational level is closely monitored to ensure savings whilst at the same time minimizing any impact on delivery of member services. Membership has remained steady during the financial year. Events used to showcase the Association and work of members, as well as providing good member networking opportunities, continue to run effectively and return small surpluses. Communication with the membership is important and is a significant cost although this is offset by in-house design and publication.

A modest budget surplus has been set for the 201011 financial year and I am confident that given the

processes we have in place to monitor and adjust our activities I will be able to report back this time next year of a sound result for Master Builders ACT.

Master Builders Group Training Against a deficit of $24,797 recorded last financial year, we have a surplus of $541,087 for the year ending 30 June 2010. The fluctuations experienced in financial outcomes for the group training operation have been a constant to deal with over the years and changes to both economic conditions and government funding arrangements can impact quickly.

Our apprentice numbers were maintained over the last year and pleasingly in the face of the predicted uncertainty placement with industry continued to be strong. The introduction of the Construction Industry Induction Card (White Card) training kept the skills centre very busy for many months. Builder’s licensing training is still attracting a lot of interest and new courses around occupational health and safety and energy rating are being introduced.

The new information technology training room is important to our training options and offering. New courses around energy rating and thermal performance will require access to this type of facility and to have it immediately available to us will assist in supporting industry and ensuring a reasonable return on our commitment. We continue to receive additional revenue from private use of our facilities when not being used for Master Builders’ purposes.

Conclusion I end my report by again thanking my executive committee colleagues for their excellent support in helping us all keep our eye on the financial ball.

Louise MacCallum and her accounts team continue to produce timely and detailed information from where we can closely monitor the financial performance of the entities. I look forward to reporting next year in similar positive vain as I have done above.

Simon Butt Treasurer

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Master Builders Annual Report | ACT

MASTER BUILDERS AUSTRALIA

The 2009-10 year was a year of differing fortunes for the building and construction industry.

The second half of 2009 saw both residential and commercial builders caught in the grip of the Global Financial Crisis (GFC) despite the many positive economic initiatives of the then Rudd Labor Government.

There is no question that the Government’s stimulus package in boosting the First Home Owners grant and the BER schools program were a major positive for industry. These programs underpinned confidence and they largely stopped Australia from suffering a technical recession. The building and construction industry played a very major role in keeping the economy going and in keeping employment relatively strong. The Government deserved credit for what it did and this was publicly acknowledged by Master Builders Australia.

However, the GFC saw the availability of business finance from the banks go down and the cost of borrowing go up. This placed huge pressures on the industry and a problem that remains.

Apart from the economy the industry in 2009-10 faced other major challenges and none more so than in the area of workplace relations. The transition from the WorkChoices legislation to the Fair Work Act has created many changes and uncertainties. The most unacceptable was the Government’s decision to recommend a reduction in the powers of the Australian Building and Construction Commission (ABCC).

This was despite the findings of the Government’s own inquiry by Justice Wilcox who found that sadly industrial unlawfulness remains a major problem for the commercial building industry. Master Builders will keep fighting for the retention of the ABCC powers. The implementation of the Fair Work Act saw building unions attempt to claw back and reintroduce restrictive work practices on building sites. The Award Modernisation process which began in earnest on 1 January 2010 was to guarantee that employers costs would not increase but this has proven to be an empty promise.

There were many other initiatives and reforms put in place by the Federal Government, or at least the process started, including national workplace

safety, harmonisation, national licensing of trades, Australian consumer law, disability access to premises legislation, to name but a few.

As a result of the Government’s massive reform agenda, advocacy at the national level was very intense in representing the interests of your industry.

The 2009-10 year ended with even more uncertainties when the Hon Julia Gillard took over as Prime Minister in June and then called an early election not long after.

The new term of Government has resulted in a minority government with the support of the Independents.

Regardless the most important challenge for our industry is how the economy is to be managed post GFC. Without a strong economy and a positive economic agenda, the building and construction industry will run the risk of experiencing a long period of poor trading conditions. Master Builders Australia will lobby hard for that not to be the case in the year ahead.

Wilhelm Harnisch CEO Master Builders Australia

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Master Builders Annual Report | ACT

SECTOR COUNCILS Residential Over the past year residential building activity in the ACT has been very strong, this can be primarily attributed to the ongoing demand for residential housing and the first home owner grant boost which has seen very strong activity in the first home owners marketing sector. ACT Government Housing affordable housing initiatives have also contributed to the ongoing strength of the new residential housing market.

The last year has also seen more land being released to the market especially in North Canberra and forecast releases of an adequate supply of land for future years including Molonglo. The availability of adequate land supply coupled with low interest rates and low unemployment should ensure solid growth in new housing starts well into 2011.

The additions and alterations sector of our market has also seen relatively strong activity in the past twelve months. Consumer confidence in this sector of the industry appears to be much higher than last year which is boosting house renovation activity.

Additions and alterations activity are forecast to gain further strength over the short and medium term.

The redevelopment sector of the industry has also seen strong growth in urban renewal with increased activity in multi unit developments and medium to low rise unit developments. The growth in this sector may be hampered by uncertainty surrounding the proposed change of use charge which was to have been in place by 1 July 2010.

The one negative issue in the past year has been the quality of work and specific issues raised by residents in multi unit developments. The Residential Sector Council has been an active participant in addressing concerns raised by the Minister for Planning and we are hopeful of a satisfactory resolution moving forward.

As I see it there are challenges ahead for the industry, especially around the issue of housing affordability and

the extra cost imposts being imposed on our sector of the industry associated increased energy efficiency requirements. The ever increasing costs of land and specifically the new requirements associated with estate development codes which, if implemented in the current form, will result in reduced block yield and even higher land costs to the consumer and the builder.

We also have challenges in the residential sector resourcing adequate skilled trades people especially in periods where there is a peak in construction demand and I call on our sector of the industry to support apprenticeship training initiatives to secure the future skills needs of our industry. „„ Andrew Kerec Chair

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Master Builders Annual Report | ACT

Professional

Subcontractors and Suppliers

The Professional Council represents the professional industry including planners, architects, landscapers, engineers, lawyers and bankers just to name some of the skills.

When I look back at the last year I am reminded that one should never give up on fighting for what we think is right and what we want for our Industry, as a group we can achieve great outcomes. I say this as I think of all of the people, and they know who they are, that fought so long and hard to introduce the Security of Payments legislation, as far back as the late eighties.

This Council plays its role in the Master Builders Association to advise on a raft of planning, design and construction issues that are continually on the agenda of the Association. The Professional Council is represented by a Chair and alternate on the Master Builders Executive. These two representatives and many other volunteers then provide advice regarding the dayto-day issues that might arise but more usually specific issues that are of an on-going nature in our industry.

As an example of the input your sector has into issues, we are presently involved with committees, workshops and formal submissions working on Quality of Building Work (predominantly to address residential unit development processes to ensure quality of work), Draft Variations to the Territory Plan (a range of amendments are continually being proposed), Construction Industry Advisory Group (involved with compliance and education activities in the construction industry), Chief Minister’s Round Table (an initiative by the Chief Minister to meet with senior industry representatives on major issues confronting the ACT), BCA 2010 (came into effect 1 July 2010 including new provisions for energy efficiency), Master Builders/ActewAGL (regular meetings to address issues arising), University of Canberra Bachelor of Building & Construction Management Course (to ensure the commitment to the continuation of this course), ACT Civil & Administrative Tribunal (ACAT) (reviewing decisions and possible impacts on the industry), Training (input to various training courses provided by the Master Builders).

The Council is always looking for its membership to contribute to these various activities.

Hans Sommer Chair

Although unsuccessful at the time, they laid the groundwork for the introduction of the legislation from the first of July this year. Is it perfect? Probably not; does it mean that the subcontractors will be paid all their entitlements on time? I don’t think so. It is however a step in the right direction and it will go a long way to help settle and avoid long running disputes. It has been great to see the increased attendance at the Subcontractors and Suppliers Sector Council meetings but we need more members to turn up as this is still the best forum to share your grievances and to make your voice heard. It is through this forum that as a group we a have chance to make our industry much more equitable. As the biggest group in the Master Builders, if we talk they will listen!

In the year ahead there is more work to be done and many more causes worth struggling for, like a reduction in workers compensation premiums, proper scrutineering of subcontractors without added burden to those who are doing the right thing and most important, to make sure we have a voice in all matters affecting our industry.

I take this opportunity to thank Peter Fairburn for his fantastic contribution as Chairman of our sector and wish him well in his retirement.

Graciete Ferreira Deputy Chairman

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Master Builders Annual Report | ACT

SECTOR COUNCILS Civil Contractors The last 12 months of trading in the local Civil Construction sector has been characterised by rapidly growing order books for most of our members, shortages of skilled plant operators and specialised subcontractors, and the increasing presence of contractors who have come from other states hoping to take advantage of the excessive work load.

Many companies within the sector would prefer to have the available projects spread over a longer period of time to try to avoid a boom bust cycle. Such a wish would deliver better economic value to the community but has always been hard for authorities to manage. The concurrent construction of the new dam on the Cotter River and other projects by the Bulk Water Alliance has unfortunately added to pressure on local resources.

The shortage of residential land, associated head works and adjacent infrastructure is driving the current work load and it is difficult to determine when land supply will catch-up with demand as it surely must.

The year has also been notable for the breaking of the severe drought and a return to the more traditional wet Canberra winters and the consequent problem of significant labour down-time when even small rain events can have a significant impact due to extended drying times on sites during the colder months.

Some contractors are re-learning the need to have funds available to survive the periods of low income after several years of unusually dry conditions.

Our association has continued to work with government agencies to offer constructive suggestions for the improvement of the delivery of capital works to the local community. In particular, our long term project of seeking a review and change to the quality of designs and documentation on civil projects is nearing completion. We have also expressed concern about the practice of calling tenders before the project is actually ready to commence. Delays to projects occasioned

continued...

by a complex planning and approval process are far from being resolved. From the government’s side, the department of TAMS has been concerned about some instances of the slipping in quality of construction.

It has been a successful year for most of our members and we are grateful to the hard-working staff of the Master Builders for the representation and guidance that is given to our sector as a whole and to individual members when sound advice is required. It is a great industry largely built on the backs of positive hard working people and we all remain upbeat about the future. „„ Peter Middleton President

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Master Builders Annual Report | ACT

Commercial Builders The commercial building sector saw another bumper year of works in the territory and I am pleased to provide a brief overview of activities in the 2009-10 financial year.

The combination of a continuation of the buoyant conditions brought about by several major projects in the public and private sector and the Federal Building Education Revolution projects, had the positive affect of growth in the sector creating strong employment within the industry, with the counter effect of maintaining the pressure on the skilled resources at both worker level and middle management.

The sector looks to the skilling industry and governments for continued support to deal with this growing problem. In this regard the sector provided on-site training support while utilising the services of trainers such as Master Builders Group Training in hosting cadets and trade apprentices.

The Master Builders have also been very active in encouraging and supporting the University of Canberra’s Construction Degree program which is proving to be a great success for the commercial sector.

A strong focus on occupational health and safety on site was reinforced with development and support of the sector based OHS liaison group in sharing information and developing a uniform practical approach to enforcing OHS compliance on sites.

The Master Builders and commercial sector was well represented in providing effective feedback and support for the introduction of the Security of Payments Act in the territory, which came into effect on 1 July 2010.

Compliance of trade contractors was elevated as an issue and the Commercial Builders sector continuing to investigate workable, self regulated systems of monitoring and facilitating compliance that can take the pressure off tedious repetitive monitoring at the builder level as well as at the subcontractor level.

Industrial relations in the sector continued to be active with the support of the Master Builders Director of Industrial Relations, members were assisted in achieving workable agreements and feeding back to contemporary issues such as award modernisation and subcontractor compliance.

The sector was well represented during the year on roundtables with the various authorities and utility providers to engage them as stakeholders in the industry to facilitate workable relations. Many issues were raised that assisted in identifying systematic problems that are now on the radar of continuous improvement which will have long term benefits to members.

The Sector looks to the coming year as one of consolidation and readiness meet the new challenges. „„ Sam DeLorenzo Chair

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Master Builders Annual Report | ACT

INDUSTRIAL RELATIONS Introduction I understand this will be the first industrial relations report for what one hopes will become a regular event, the publication of an Annual Report. Given that context, ones first duty is to pay regard to my predecessor’s service to the construction industry generally and the Master Builders in particular. Twenty six years is an enormous contribution, never to be replicated.

What this report will set out to do is give a concise overview of those matters that have exercised my time since my commencement in January both at the local and national level. Thereafter, I will endeavour to do a little forward thinking with respect to prospective changes to the legislative regime both in the ACT and federally and perhaps a few final words on our interaction with the CFMEU.

The local scene When I commenced in January two immediate issues demanded my attention. The first was the need to bring a better understanding of what was at that point very new federal industrial relations legislation. For those of us use to working with ‘WorkChoices’, the new Fair Work Act 2009 (Cth) (the Act) and the modern Award regime presented different challenges, not the least of which was the increased role of the union movement at workplaces. Thus in my first few months, armed with appropriate government funding we held a number of seminars both in-house and at individual workplaces explaining the subtle yet profound differences between life under the conservatives and labor.

Judging from membership feedback, it was a successful exercise and perhaps worth doing again post election.

The second matter of importance was the issue of ‘sham’ contracting or the engagement of ABN holders in the commercial sector of the industry. This form of engagement has been common place for a very long time in the Canberra scene. With the advent of the Commonwealth Construction Code, the ABCC and the new sham contracting provisions in the Act, its practice is now highly problematic, particularly given the overt interest of the CFMEU and ABCC in the practice. The Master Builders approach was two fold; firstly we ran a series of seminars with the cooperation of Hugh Chalmers of Meyer Vandenberg Lawyers, which were

oversubscribed and secondly; the provision of strategic advice to individual members depending on exposure and pressure from both the union and ABCC. It is fair to say this issue occupied an inordinate amount of my time and in all likelihood will continue to do so. Further, those members under the greatest pressure remain plasterers, painters, bricklayers, formworkers and other like trades.

The year has also seen considerable work in the enterprise bargaining space. Undoubtedly the main reason for this has been the weakening of the bargaining arrangements under the Act, which now sees the CFMEU enjoying default representational rights. Employers, who for a generation have dealt successfully with their workforce without the recourse to unions, are now being forced to sit down with the CFMEU. The main areas of negotiation revolve around; hours of work (36-38), OH&S and of course money. The current union campaign is for 15% increase over the life of the agreement. Members should be advised that the Master Builders always addresses these matters on a case by case basis.

With the change of leadership at the CFMEU we have observed a stronger presence of the union at workplaces, as the new Secretary seeks to make his presence felt.

This was particularly the case following the unfortunate Barton Highway bridge-deck collapse, which saw the union seek to gain access to sub-contractor information in relation to workers compensation and other ‘entitlements’ on the basis of there being a ‘reasonable suspicion’ of breaches of the Work Safety Act 2008 (ACT).

The picture Australia wide Nationally the picture can be summarised as confused, as the parties seek to fully understand the workings of the new Act and Fair Work Australia in addition to implementation of the Modern Award system and the harmonisation of the OH&S legislation to name a few. If the shemozzle that was the National Wage case is any gauge of the efficacy of the new ‘purpose built’ Fair Work Australia, is any indication of the future, then all of us are in for a bumpy ride in 2011.

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Master Builders Annual Report | ACT

OH&S Introduction With the recent Barton Highway bridge-deck collapse, OH&S issues remain front and centre in the ACT and surrounding region. Work Safety’s focus is fairly and squarely on the construction industry with more inspectors coming on board and the Office of Regulatory Services reporting inspecting in excess of 630 sites in 2009-10. We have also seen the introduction of Codes of Practice (Fall from Heights) and changes to the Workers Compensation Act increasing coverage within the industry.

this mix is the very real concern that the constitutional picture is far from clear. The strict legalist position is that Commonwealth regulators can only enforce areas of law where an existing head of commonwealth power exists, (ie there is an express term in the Constitution giving the Commonwealth the power to legislate).

There is no occupation health and safety head of power in the constitution, meaning that the only way the Commonwealth can regulate in this area is if the states refer their powers, as they did with industrial relations.

Fitness for Work and the prospect of the introduction of testing remains a work in progress also. Certainly the Master Builders is unlikely to get initial widespread support for impairment testing, but members should be aware that some have expressed an interest in being standard bearers and this is an issue, which I will personally drive. There ought be no compromise on safety, near enough is not good enough and zero harm, whilst certainly a searing challenge for the industry remains an achievable goal.

Of course the Government could go to the electorate via a referendum. This was an option given serious consideration prior to the August election, however in the current environment, any thoughts of a return to the polls, if only for a referendum will be met with howls of derision from a public utterly sick of politics and politicians. Given the peculiar constitutional requirements, it is again unlikely, with a referendum needing overwhelming support to have any chance of success.

All that said and done, the major issue confronting the membership, government and other stakeholders is the harmonisation of all state and territory OH&S laws into one national code. The remainder of this report will go to the implementation of the national system due on 1 January 2012.

In the absence of constitutional reform OH&S regulators will be left to develop their own guidelines – and with nine different jurisdictions and workplace authorities administering the laws, you are going to get unequal and inconsistent application.

Where to for implementation?

The likelihood of workable national OH&S laws being in place by 1 January 2012 appears less likely if you are to believe the voices of some of the stakeholders.

The model Act released by Safe Work Australia may in fact come a cropper due to the structural differences within the various state regimes, as questions remain around which regulatory body will prosecute offenders and which court will hear these matters.

The political state of the nation sheds little if any light on the prospect, with WA not agreeing to implement the legislation, and given the state of flux nationally, whichever party, with the support of Independents, comes to the Treasury benches is hardly likely to be focused on what was a non-existent issue at the polls. Added to

There is also uncertainty about which court will hear matters of this nature. In NSW for example the Industrial Court has jurisdiction to hear OH&S matters, but there is no equivalent court in Victoria, ACT or QLD and for a whole range of complex reasons, NSW is unlikely to be the model adopted.

To overcome this problem an existing court will have to be given national jurisdiction, for example the District or Supreme Court in each state. That said there is likely to be an enormous fight over jurisdiction and given that model laws were determined by different courts there is likely to be a series of divergent outcomes across the nation. That is, assuming the system even gets off the ground. So whilst harmonisation is a desired outcome, the road ahead is far from smooth, with many cul-de-sacs still to negotiate.

Michael Baldwin Director Industrial Relations

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Master Builders Annual Report | ACT

MASTER BUILDERS

FIDELITY FUND & SKILLS CENTRE BUILDING FUND Master Builders Fidelity Fund Report The ACT Master Builders Fidelity Fund was established in 2002 under the ACT Building Act following the collapse of HIH and the reluctance of other insurers to provide Home Warranty Insurance. The Fidelity Fund is administered by the ACT Master Builders Association and operates under a Trust Deed with Trustees approved by the Minister for Planning. The fund is regulated under a prudential standard established by ACT Government Regulation and reports to ACT Treasury.

Since the fund commenced in 2002 over 15,000 Certificates have been issued to protect the interests of consumers in the ACT against the insolvency, disappearance or death of the builder during construction and against latent defects. The warranty period is 6 years from completion for structural defects and 2 years for non-structural defects.

Applications for approval with the Fidelity Fund are assessed by an independent assessor and approved by the Board of Trustees. In the last financial year the Fidelity Fund issued 2,372 Certificates of cover. Claims lodged against the fund are administered by the Master Builders Association and referred to an independent assessor prior to subsequent referral to the Fidelity Fund Board of Trustees for consideration. Claims are usually processed and finalised within 90 days of lodgment.

I report that the ACT scheme is operating well while warranty insurance in some of the other states where cover is provided by external insurers has been of some concern, the position in the ACT is different. The ACT Master Builders Fidelity Fund has safeguarded the Act Home Building Industry by continuing to provide coverage in the Territory.

Col Alexander Chair - Board of Trustees

Master Builders Skills Centre Building Fund Training is the lifeblood of our industry. Without it we will only see a deterioration of quality across all aspects of the industry, a position that is untenable.

We can import so many products and appliances these days to suit our lifestyles but we cannot

import building and construction. It is done on the ground here. To train people we need decent facilities and this is not always an easy undertaking for those operating in the training world.

The MBA Skills Centre Building Fund was established to provide assistance to non-profit organizations for the acquisition, construction or maintenance of a building or buildings to be used as a school or schools. The building fund relies on donations being received and then trustees consider appropriate distributions based on grant requests.

I am pleased to report that over the past year we have been able to support increased infrastructure at Master Builders Group Training skills facility as well as supporting the Oz Help Foundation in the acquisition and establishment of their new premises and training centre at Fyshwick. Both of these operations are providing critical support to the building and construction industry and are able to increase that support through these contributions.

Whilst the fund receives much of its source revenue via distribution from limited Fidelity Fund surpluses, we have also sought and received other income via functions and our own charity golf day. One of the challenges for the fund trustees is to look at a range of activities and opportunities that would attract additional funds. We have been promoting the fund through advertising for any member who is interested in and able to donate to the fund. I would encourage members to consider this is a good way of giving back to the training providers who can support local business.

The trustees meet periodically throughout the year to manage the business of the fund. This always requires a commitment from people who are invariably extremely busy in their own operations but committed to giving back. I thank my fellow trustees and those who support the work of the fund and I look forward to reporting on the activities of the fund next year as it becomes more established in its role of supporting the vital training effort needed to grow the ACT economy.

Trevor Corver Chairman

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Master Builders Annual Report | ACT

MASTER BUILDERS GROUP TRAINING

Master Builders Group Training (MBGT) had a solid year and continues to develop and grow as a result of initiatives developed through our day-to-day operations and the ongoing implementation of the strategic plan.

This financial year, the Group Training Organisation (GTO) employed 186 full time and part time apprentices and the Registered Training Organisation (RTO) trained 302 full time and part time apprentices.

Forecasting demand for our services and balancing this with our annual intake of new apprentices is always difficult due to the competing demands of satisfying our client’s needs, while ensuring that we do not have our apprentices out of full time placement. The demand for apprentices during the financial year remained relatively constant with the down time averaged at 22.3 hours per apprentice in comparison to 39.8 hours in 2008/2009.

It has been difficult over the past three years to attract sufficient bricklaying apprentices into the training program. Through the introduction of a number of training incentives, the 2009/2010 year has shown a 17% increase in bricklaying apprentices in training at MBGT. Although the numbers remain relatively low in comparison with other trades, we currently still have 34 bricklaying apprentices in training.

The employment of a dedicated OH&S officer and the reinforcement of safety through our policy and compliance regimes has positively impacted on the workers compensation claims with the number of claims decreasing from 36 in the 2008/2009 financial year, down to 10 in 2009/2010.

We continue to develop training initiatives to suit the demand from our members and through changes in legislation and industry standards. The introduction of the ACT Induction Card boosted the training demand for this unit of competency and combined with existing worker and other short courses, MBGT issued 1780 statements of attainment during the financial year.

Again our Apprentices and Trainees have excelled in achieving recognition for excellence in their

chosen fields. In the Regional Worldskills we achieved gold in plumbing, silver in Bricklaying, bronze in Carpentry, silver in the school based category and silver in the team carpentry category.

This was followed up by Gerard Allen, a fourth year plumbing apprentice, securing a gold medal in the National Worldskills competition held in Brisbane.

The Productivity Places Program has provided funded opportunities for existing workers in the industry to be assessed for qualifications which recognise the skills and knowledge they have acquired through on the job training. This year MBGT have registered 52 existing workers in the program covering from Certificate III in Carpentry, Certificate III Bricklaying, Certificate IV in Building and the Diploma of Building.

Our school based programs such as the School Based Apprentice Scheme provides a learning path for students and an opportunity for them to use this training to secure an apprenticeship at the end of their schooling. This has an added benefit in that these students will have already obtained a number of skills and competencies prior to officially starting as an apprentice, making them very valuable to our host clients from the first day on site. The Kids Assist program continues to generate enormous interest and it is generally recognised in the training arena, that this program is effective in assisting students make more considered decisions regarding their options for future education and training. „„ Rod Mitton Chairman Master Builder Group Training

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Master Builders Annual Report | ACT

MASTER BUILDERS & BORAL EXCELLENCE IN BUILDING AWARDS

The Awards Dinner It was a spectacular night of fine dining, premium entertainment. The host of the evening was Anh Do, as seen on Thank God You’re Here, Dancing with the Stars and The Matty Johns Show, to name a few. The entertainment for the evening was a blast from the past, Al James as Neil Diamond: The Ultimate Tribute.

Project of the Year The Botswana High Commission has earned Kell & Rigby the prestigious and highlyanticipated award for Project of the Year.

The construction of the Botswana High Commission showcases great quality of workmanship and meticulous attention to detail. This outstanding project boasts exceptional finishes, clean and precise joinery, and intricate glazed brickwork on the curved external wall.

House of the Year The title of House of the Year is a highly sought after one, awarded to homes of the highest possible standard.

This year, Monarch Building Solutions have taken out the prestigious award for their exceptional work on this custom-built home located in Yarralumla.

The team at Monarch Building Solutions were recognised with this most highly-coveted of the residential awards for their dedication to top quality workmanship, meticulous attention to detail and a great command of materials and construction technique.

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Master Builders Annual Report | ACT

Emerging Building of the Year Aaron Templeton has a pedigree of more than 10 years service within the building and construction industry as a Carpenter with a number of standout achievements marking his career. In 2000 he was judged ‘Outstanding First Year Apprentice’ and he maintained this high standard throughout his apprenticeship.

Aaron duly completed his formal apprenticeship and went on to undertake higher learning requirements in 2006 through the Master Builders in ACT in pursuit of a low-rise builder license which he again achieved by maintaining excellent assessment outcomes in the process.

Professional of the Year - Ian Anlezark Ian displays continuous high levels of dedication and professionalism in his work and a great respect for the industry as a whole. Ian is accredited as a Principal Building Surveyor with the Australian Institute of Building Surveyors, is registered as a Principal Building Surveyor in the ACT and as a Grade 1 Certifier in NSW. Ian’s area of expertise is the assessment and approval of all classes of buildings in accordance with the Building Code of Australia.

Subcontractor of the Year National Fixing Pty Ltd have developed a wellrespected name for themselves throughout the building and construction industry, consistently displaying meticulous attention to detail and professional work of the highest standard. National Fixing Pty Ltd place a great focus on quality of workmanship and the flawless nature of their work speaks for itself, winning them the coveted title of Subcontractor of the Year.

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Master Builders Annual Report | ACT

2010 EVENTS 2010 Charity Golf Day This year’s Golf Day was held at Yowani Country Club and the money raised through this event went to the Master Builders Skills Centre Building Fund.

The day began with some very keen players tee-ing off just after 6.30am. From there, over 220 Master Builder members and guests played a leisurely round of golf, up until approximately 6.00pm. The event dinner hosted by 106.3FM Radio Presenter Cam Sullings and the special guest for the night was Australian media personality, sports commentator and former Aussie Rules player Sam Kekovich.

2009 Annual Dinner - Hotel Realm 250 guests attended the Annual Dinner, John Hargreaves, MLA and his wife Jenny represented the ACT Government and amongst the guests from all sectors of the building and construction industry were life members John Hailey, John Haskins and of course our President and life member Ross Barrett.

Guests were treated to several very funny sets by our MC Paul Martell. Mark Sullivan, Managing Director, Actew Corporation and News Limited journalist Glenn Milne were also part of the evening’s line-up as guest speakers. And to cap things off seventeen long standing members were presented with Membership Anniversary certificates.

2010 Industry Dinner For our first Industry Dinner for 2010 we were delighted to announce that the Leader of the Federal Opposition the Hon Mr. Tony Abbott MP would be the guest speaker. The dinner held in the Federation Ballroom at Hyatt Hotel Canberra was an outstanding success. Mr Abbott, in the lead-up to the Federal Election picked our Industry Dinner, over many other opportunities, to outline what he would deliver for the construction industry if elected.

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Master Builders Annual Report | ACT

Master Builders Group Training Apprentice & Cadet Awards The Apprentice and Cadet Awards recognise and celebrate the outstanding achievements of the Master Builders Apprentices and Cadets.

Apprentice of the Year - Gerard Allen Gerard has won a number of awards during his apprenticeship, including the silver award at the 2008 National Worldskills and was recognised as the stage 1 and stage 2 plumber of the year at the Plumbing awards. During 2010 Gerard received the Outstanding plumber of the year award at the 2010 Plumbing awards, Outstanding apprentice of the year at the Group Training awards and the Gold award at the 2010 National Worldskills Competition.

Cadet of the Year - Peter Jamieson Peter’s determination and ability has clearly been displayed in the outcomes he has achieved with his training. In 2009 he won the ACT Trainee of the year award in the Training and Education Excellence awards and represented ACT in the National awards. His dedication to completing the offsite learning assignments was seen in the quality of his work which put him at the top of his class. Peter has continued on to the Building Management degree at the University of Canberra.

President’s Luncheons President’s Luncheons are one of the Master Builders key activities on the event calendar. The luncheons are hosted by the President of the Master Builders, Ross Barrett, and include a presentation from a prominent Guest of Honour. The Guests of Honour include leading politicians and executive officers of Federal and ACT government departments.

The Luncheons provide an intimate forum for twenty guests to discuss topical industry issues. They are an superb way for Members to network with key industry stakeholders and to keep up to date with current activities within the ACT’s building and construction industry.

24

Master Builders Annual Report | ACT

Master Builders Association of The Act & Controlled Entity

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010

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Master Builders Annual Report | ACT

STATEMENT BY MEMBERS OF THE COUNCIL OF MANAGEMENT We R Barrett and S Butt, being two members of the Council of Management of the Master Builders’ Association of the ACT, do state on behalf of the Council that in the opinion of the Council: (1)

The financial statements and notes comply with the Australian Accounting Standards, mandatory professional reporting requirements and other authorative pronouncements of the Australian Accounting Standards Board;

(2)

The financial statements and notes comply with the reporting guidelines of the Industrial Registrar;

(3)

The financial statements and notes give a true and fair view of the financial performance, financial position and cash flows of the reporting unit for the financial year to which they relate;

(4)

At the date of this report there are reasonable grounds to believe that the Master Builders Association of the ACT will be able to pay its debts as and when they fall due; and

......................................................................................

President

......................................................................................

Treasurer

Dated this 6 day of September 2010

(5)

During the financial year to which the financial report relates and since the end of that year:

(i)

Meetings of the Council were held in accordance with the rules of the organisation; and (ii)

The financial records of the reporting unit have been kept and maintained in accordance with the RAO Schedule and the RAO Regulations; and

(iii)

The information sought in any request of a member of the organisation or a Registrar duly made under section 272 of the RAO Schedule has been furnished to the member or the Registrar; and

(iv)

There has been compliance with any order for inspection of financial records made by the Commission under section 273 of the RAO Schedule.

Signed in accordance with a resolution of the Members of the Council of Management passed on 6 September 2010.

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Master Builders Annual Report | ACT

INDEPENDENT AUDIT REPORT TO THE MEMBERS Report on the Financial Report We have audited the accompanying financial report of the Master Builders’ Association of the ACT and controlled entity (the association) which comprises the statement of financial position as at 30 June 2010 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, a summary of significant accounting policies and other explanatory notes and the statement by members of the Council of Management (the Council).

Council’s Responsibility for the Financial Report The council of the association is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Associations Incorporation Act 1991 (ACT).

This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances,

but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence In conducting our audit, we have complied with the independence requirements of Australian professional ethical pronouncements.

Auditor’s Opinion In our opinion: The financial report of the Master Builders’ Association of the ACT and controlled entity is in accordance with Associations Incorporations Act 1991 (ACT) and the Workplace Relations Act 1996 including: i.

giving a true and fair view of the association’s financial position as at 30 June 2010 and of its performance and its cash flows for the ear ended on that date; and

ii.

complying with Australian Accounting Standards (including Australian Accounting Interpretations) and Incorporations Act 1991 (ACT).

A.B. Papps, WalterTurnbull, a business unit of PricewaterhouseCoopers, 44 Sydney Avenue, Barton ACT 2600 Dated this

7 day of September 2010

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Master Builders Annual Report | ACT

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2010 Consolidated Group

Parent Entity

2010

2009

2010

2009

$

$

$

$

9,060,654

11,450,567

3,142,052

5,907,188

(5,699,731)

(5,763,607)

(1,359,314)

(1,314,805)

(352,732)

(194,630)

(293,931)

(128,657)

Rent expense

(30,226)

(121,615)

(30,226)

(121,615)

Meetings and seminars

(13,467)

(9,005)

(13,062)

(8,811)

Printing, postage and stationery expense

(204,239)

(155,445)

(117,552)

(101,847)

Subscriptions

(137,880)

(115,103)

(130,912)

(113,627)

Consultant expense

(576,929)

(577,298)

(243,796)

(232,622)

Motor vehicle expense

(80,462)

(96,237)

(62,000)

(71,861)

Donations and sponsorship

(11,700)

(9,500)

(8,000)

(7,000)

Building awards expense

(336,260)

(306,075)

(336,260)

(306,075)

Worker’s compensation expense

(217,765)

(325,296)

(10,873)

(12,391)

-

(3,967)

-

-

(62,637)

(62,092)

(34,634)

(33,571)

(596,841)

(705,166)

(302,794)

(423,978)

739,785

3,005,531

198,698

3,030,328

(368,301)

-

(368,301)

Total comprehensive income for the year

739,785

2,637,230

198,698

2,662,027

Total comprehensive income attributable to members of the entity

739,785

2,637,230

198,698

2,662,027

Note

Revenue

2

Employee benefits expense Depreciation and amortisation expense

Operating lease expense

3

3

Insurance expense Other expenses Profit from operations Net loss on revaluation of non-current assets

-

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Master Builders Annual Report | ACT

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2010 Consolidated Group Note

Parent Entity

2010

2009

2010

2009

$

$

$

$

ASSETS CURRENT ASSETS Cash and cash equivalents

6

2,758,376

2,062,287

1,270,124

1,291,279

Trade and other receivables

7

1,260,842

1,723,512

393,571

1,051,397

Inventories

8

2,052

2,233

2,052

2,233

Other financial assets

9

620,000

-

620,000

-

Other current assets

10

47,524

424,837

(33,002)

366,354

4,688,794

424,837

2,252,745

366,354

TOTAL CURRENT ASSETS NON-CURRENT ASSETS Trade and other receivables

7

8,958

8,958

8,958

8,958

Property, plant and equipment

11

8,540,289

8,723,126

8,376,128

8,525,116

Intangible Assets

12

50,459

59,361

50,459

59,361

Other non-current assets

10

4,545

4,545

4,545

4,545

8,604,251

8,795,990

8,439,090

8,597,980

13,293,045

13,008,859

10,692,835

11,309,243

TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables

13

1,414,187

1,806,528

805,731

1,555,356

Short-term provisions

14

66,230

143,339

52,218

131,550

Other current liabilities

15

36,551

27,758

36,551

27,758

1,516,968

1,977,625

894,500

1,714,664

TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long-term provisions

14

25,492

20,434

25,492

20,434

Other non-current liabilities

15

500,000

500,000

500,000

500,000

525,492

520,434

525,492

520,434

2,042,460

2,498,059

1,419,992

2,235,098

11,250,585

10,510,800

9,272,843

9,074,145

10,728,977

9,989,192

8,751,235

8,552,537

521,608

521,608

521,608

521,608

11,250,585

10,510,800

9,272,843

9,074,145

TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Retained earnings Reserves TOTAL EQUITY

23

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Master Builders Annual Report | ACT

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2010 Retained Earnings

Asset Revaluation Reserve

Total

$

$

$

Balance at 1 July 2008

5,522,209

889,909

6,412,118

Increase in equity due to consolidation

1,461,452

-

1,461,452

Profit attributable to members

3,005,531

-

3,005,531

-

(368,301)

(368,301)

9,989,192

521,608

10,510,800

739,785

-

739,785

-

-

-

10,728,977

521,608

11,250,585

Retained Earnings

Asset Revaluation Reserve

Total

$

$

$

Balance at 1 July 2008

5,522,209

889,909

6,412,118

Profit attributable to members

3,030,328

-

3,030,328

-

(368,301)

(368,301)

8,552,537

521,608

9,074,145

198,698

-

198,698

-

-

-

8,751,235

521,608

9,272,843

Consolidated Group

Asset Revaluation Balance at 30 June 2009 Profit attributable to members Asset revaluation Balance at 30 June 2010

Parent Entity

Asset revaluation Balance at 30 June 2009 Profit attributable to members Asset revaluation Balance at 30 June 2010

30

Master Builders Annual Report | ACT

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2010 Consolidated Group

Parent Entity

2010

2009

2010

2009

$

$

$

$

9,662,303

8,991,487

3,434,770

3,967,023

55,143

125,030

33,029

98,153

(8,868,754)

(7,699,739)

(3,356,846)

(2,226,330)

848,692

1,416,778

110,953

1,838,846

50,454

3,277,273

33,635

3,250,000

Purchase of property, plant and equipment

(203,057)

(5,408,770)

(165,743)

(5,293,107)

Net cash (used in) investing activities

(152,603)

(2,131,497)

(132,108)

(2,043,107)

Net increase/(decrease) in cash held

696,089

(714,719)

(21,155)

(204,261)

2,062,287

1,495,540

1,291,279

1,495,540

-

1,281,466

-

-

2,758,376

2,062,287

1,270,124

1,291,279

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from ordinary activities Interest received Payments to employees and suppliers Net cash provided by operating activities

16

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment

Cash and cash equivalents at beginning of financial year Increase in cash and cash equivalents at beginning of financial year due to consolidation Cash and cash equivalents at end of financial year

6

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Master Builders Annual Report | ACT

MEMBERSHIP ANNIVERSARIES 50 Year Members

CB Richard Ellis Pty Ltd

Anderson G A & Son Pty Ltd

Chapman Constructions Canberra Pty Ltd

Modern Plaster Pty Ltd

DSB Landscape Architects

40 Year Members Boral Country Concrete & Quarries 35 Year Members Anderson Holdings Pty Limited Andriolo R & A Pty Ltd Project Coordination (Australia) Pty Ltd

30 Year Members Cercol Construction Services Pty Ltd John Hindmarsh (ACT) Pty Ltd

25 Year Members Belconnen Concrete Pty Ltd CSR Gyprock Douglas Joinery Pty Ltd Elvin Group Pty Ltd Newham’s Hardware Onesteel Reinforcing Pty Ltd T.OK. Carpentry And Partitioning

20 Year Members

Eastcliff Ern Smith Building Supplies FAW Building & Rural Supplies Hanson Construction Materials Homeline Building & Design Hughes Trueman James Hardie Australia Pty Ltd Madison Manteena Pty Ltd May & Russell Architects Pty Ltd N Hatzidoulis & Associates O’Connor Harris & Co Premier Homes (ACT) Pty Ltd Q Projects Rider Levett Bucknall Pty Ltd Robinson Building Group Pty Ltd Solid Constructions Pty Ltd St George Bank Limited The Village Building Co. Limited

A Murray & Sons (ACT) Pty Limited

Thirlston Floor Coverings

ABA Construction Managers

Viridian New World Glass

B A Lentfer Building Contractor

W T Partnership

Boral Roofing

Walter Pinto Pty Ltd

Brown Consulting (ACT) Pty Ltd

West R Tiles Pty Ltd

Cardno Young

Woden Contractors Pty Ltd

Cashmere C A & L J

Master Builders Association of the ACT 1 Iron Knob St, Fyshwick ACT 2609 PO Box 1211, Fyshwick ACT 2609 Tel: (02) 6247 2099 Fax: (02) 6249 8374 Email: canberra@mba.org.au Web: www.mba.org.au