Canberra building news 2 2015 online by Master Builders Association of the ACT

EDITION 2-2015

INTRODUCING THE MASTER BUILDERS’

NEW DEPUTY EXECUTIVE DIRECTOR

COUNTDOWN TO THE 25TH EDITION OF THE MASTER BUILDERS & CBUS

EXCELLENCE IN BUILDING AWARDS SELLICK CONSULTANTS CELEBRATING

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CANBERRA BUILDING NEWS I EDITION 2-2015

MASTER BUILDERS EXECUTIVE COUNCIL President Valdis Luks Treasurer Frank Porreca National Board Representative Simon Butt

CONTENTS features

special feature Sellick Consultants’ 50 years

Sellick Consultants boasts a rich history with considerable and diverse experience.

Group Training Awards 40 Congratulations to this year’s winners

CCF Earth Awards p24

Residential Builders Council Chair (Acting) Marc Roland

President’s Report Executive Director’s Report IR Director’s Report WHS Advisor’s Report

Better safety, less red tape

news&events Boral’s Mike Kane visits Canberra

The Master Builders hosted Mike Kane for a luncheon and discussion recently

New Deputy Executive Director

Senior Management Accountant Aaron Froud

2015 Federal Budget

Director Commercial Operations David Leitch

A look at industry news from around the country

Introducing Michael Hopkins, Master Builders new Deputy Executive Director

National Update

cover photo Display home less than 225m2 by Sekisui House, one of the finalists in this year’s Master Builders & Cbus Excellence in Building Awards

editor’s note

Will 2015 be remembered as the year of ‘The Great Land Drought’?

What it means for the industry

Old heads involved with land development say supply is bad, one has been quoted saying “the supply of land in the ACT is at its worst since 1994”.

MASTER BUILDERS GROUP TRAINING General Manager Wendy Tengstrom

© This publication is copyright. No part of it may be reproduced, stored in a retrieval system or transmitted in any form or by any means including electronic, mechanical photocopy, recording or otherwise without the permission of the Master Builders Association of the ACT. Disclaimer: readers are advised that the Master Builders Association of the ACT cannot be held responsible for the accuracy of statements made in advertising and editorial, nor the quality of the goods or services advertised. Opinions expressed throughout the publication are the contributors own and do not necessarily reflect the views or policy of the Master Builders Association of the ACT.

Non-union enterprise agreements

Work Health & Safety Advisor Philip Edwards

Advertising enquires Director Commercial Operations David Leitch Tel: (02) 6175 5970 Mob: 0437 379 391 Email: dleitch@mba.org.au

Using local expertise

MASTER BUILDERS MANAGEMENT TEAM

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

Changing times at the MBA

Suppliers & Subcontractors Council Chair Graciete Ferreira

Director Industrial Relations & In-house Legal Counsel John Nikolic

The 2015 CCF Earth Awards recently celebrated excellence in the civil construction industry at the Rex Hotel.

forewords

Professional Consultants Council Chair Bryan Leeming

Deputy Executive Director Michael Hopkins

A look at some of the finalists from this year’s Excellence in Building Awards

Commercial Builders Council Chair Peter Naylor Civil Contractors Council Chair Andy Crompton

Executive Director Kirk Coningham OAM

Excellence in Building Awards

Where are the issues? Treasury, the LDA, Mr Fluffy, Public Service jobs cuts, loss of yield in new suburbs due to the Commonwealth’s EPBC Act?

p18

of interest West Belconnen project

Proposal to amend the Territory Plan to provide for the Riverview development

Moncrieff Display Village

Master Builders team up with the LDA to provide examples of liveable housing

The thing about caveats

MBA-ACT’s Land and Planning Policy released last July asks the ACT Government that by October 2016 it will have achieved a land release program with a third LDA release, a third englobo and a third joint venture. We also recommend a consolidation of TAMS functions with Environment and Planning and permit direct industry liaison and negotiation on EPBC requirements. MBA-ACT urges the ACT government to immediately commence the groundwork so that a positive and productive future for the Canberra community can be ensured.

Meyer Vandenberg Lawyers explain caveats and what you need to know about them

CANBERRA BUILDING NEWS I EDITION 2-2015

foreword

PRESIDENT VALDIS LUKS

PRESIDENT’S MESSAGE The early part of 2015 has seen our Association farewell two long serving leaders in John Miller and Jerry Howard. John was our Executive Director for some eight years and Jerry served the Association for 15 years.

Kirk’s previous experience in dealing with Governments and industry will be a great benefit to our Association.

We thank them both very much for their dedicated service and wish them and their families all the best for their future endeavours.

Michael Hopkins joins us from Master Builders Queensland where he worked as the Regional Manager for the Sunshine Coast and Burnett Wide Bay areas, engaging with and representing some 1200 members. In this role he formed part of the extended senior leadership of Master Builders Queensland where he was responsible for strategy development as well as management of two regional offices.

I’d also like to take this opportunity to welcome their replacements, Kirk Coningham and Michael Hopkins. With Kirk coming into the Executive Director’s role in March and Michael commenced as the new Deputy Executive Director in mid-May we are in a very strong position to build upon the good work of their predecessors.

The Board is extremely pleased to have Kirk take up the role and build upon the hard work of the past decade.

He brings with him 20 years’ experience in government, not for profit and privately owned organisations as well as a strong background in both town planning and financial management.

“The Board is excited and determined to continue the strong representation we have in this region as an association and on their behalf I welcome both Kirk and Michael into their new roles.” Kirk brings a wealth of experience to his role, having served in senior positions in the public and private sectors, most recently in the commercial construction sector. For the past four years Kirk was based in Sydney working as a senior executive with Leighton Holdings and prior to that was with the Australian Medical Association, Murray Darling Basin Commission, Medicare Australia as well as the Diplomatic Corps and the Australian Army. Raised in the ACT, Kirk fully understands the vital role Canberra’s building and construction industry plays in our local economy and community.

CANBERRA BUILDING NEWS I EDITION 2-2015

Michael has worked closely with all levels of Government for the past 13 years advocating on behalf of the building and construction industry. The Board is excited and determined to continue the strong representation we have in this region as an association and on their behalf I welcome both Kirk and Michael into their new roles. I strongly believe we have secured the services of two very experienced and talented individuals who are capable of showing the leadership and direction needed to take the Association into the future.

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CANBERRA BUILDING NEWS I EDITION 2-2015

EXECUTIVE DIRECTOR KIRK CONINGHHAM OAM

A MYSTERY Why is Canberra’s first rate, high quality construction industry routinely ignored or actively discounted in government procurement processes? At the highest levels, the compelling proposition for using local expertise is well understood and genuinely accepted. Our political masters understand investing in the local industry delivers better value for the community by:

risk averse. Changing procurement guidelines, or even treating them as ‘guidelines’, carries risk. If local content is not an imperative, why risk the change? This mind set encourages ‘cut and paste’ tenders that effectively exclude local industry.

The bureaucratic mind-set also encourages a ‘race to the bottom‘ on cost.The least risk option is to accept the lowest cost. But every Canberra householder understands that cost is not the same as value.To be fair, the bureaucracy has learned from the • ensuring government spending, our taxes, sticks in our errors of the past and is now seeking to apply a more holistic economy, view in tender assessment where price is not everything. • improving quality (because locals literally stand by their work), While this is commendable, it doesn’t help our local industry • leveraging local knowledge and networks to deliver better when we are excluded from the tender process. results, and • building our skills base for the future. The full value to our community of government and private sector investment in the construction industry lies in empowering The ACT Government says all the right things about local the local industry to deliver and grow. Let us build the schools content, but it is the doing that counts. Of six major projects that help educate our kids and the hospitals that care for our sick commissioned by the government in the past 12 months, not one and injured. Let us build the roads and transport infrastructure has been won by a local firm. Even our larger, highly respected that empower productivity in our community. construction firms rarely even get the chance to tender, let alone win a job. ‘Go local’ should be the first instinct for our procurement agencies.We are not seeking special privileges and protections. Canberra’s procurement agencies seem to look outside of the Give us a level playing field and a fair chance and we will be Territory at first instinct. Counter-intuitive to their political competitive. masters, their tenders often specifically exclude local contractors, either by habit or design, and even when locals have a chance – The proof of this is that local industry continues to deliver to we rarely, if ever, make the short list on larger jobs. private sector clients. In the Master Builders Excellence in Building Awards, for commercial buildings this year only one of the 19 The net result is: finalists is a government job.The private sector welcomes local firms – the ACT Government clearly does not. • all profits leave our community. None of the profits made through spending our money circulate in our community, Granted, we need to get better at forming partnerships to take • investing in the skills and experience of other communities on the bigger jobs. Our industry must find the maturity and nous rather than our own, and demanded to deliver compelling bids. United, we have the skills • rewarding the ‘fly in fast, fly out even faster’ crew with our and the experience to deliver any project no matter how large. taxes. We also need to develop real trust, to demonstrate through action that our commitment to this community is equal too if not The mystery deepens when explanations are called for.The quick greater than that of the bureaucracy. Master Builders understand answer is often cost.The outsiders, it seems, can do the job more that sustainable business is built on fair profit derived through cheaply. Could this be because they don’t need to account for consistently delivering quality at a competitive price. the cost premiums in workers compensation and long service leave built into Canberra’s construction industry? Are our canny Construction is Canberra’s largest private sector industry. Our bureaucrats setting the bar high for local industry, then ducking local private sector needs to be given a fair go if not supported under that bar to go outside for cut-price contractors? and nurtured.Today it seems we are summarily dismissed and Of course, the reality is more complex than this. Part of the ignored. answer lies in the bureaucratic culture that is almost universally 8

CANBERRA BUILDING NEWS I EDITION 2-2015

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CANBERRA BUILDING NEWS I EDITION 2-2015

DIRECTOR INDUSTRIAL RELATIONS JOHN NIKOLIC

NON-UNION ENTERPRISE AGREEMENTS:

YOUR RIGHTS TO NEGOTIATE DIRECTLY WITH EMPLOYEES The pattern CFMEU enterprise agreement expires in March 2016. Early indications are that the CFMEU will be seeking a pattern agreement for the entire industry, rather than sector-specific agreements, which is likely to further compress and elevate labour costs. Members often don’t realise that they have a right to enter into either a union enterprise agreement or a non-union agreement. Non-union agreements are made directly with employees rather than via a union representative, and (by removing the various union business interests often found

All of the above entities are either affiliated, associated or established by the CFMEU. This array of commercial entities reflects what Jeremy Stoljar SC, Counsel Assisting the ongoing Royal Commission into Trade Union Corruption and Governance, has described as the evolution of unions into ‘large commercial and complicated commercial enterprises’. The use of EBAs as effective running sheets of union business interests provides a dangerous incentive for union militancy and can lead to significant conflicts of interest between the union and its members. For example, in its

“There is an increasing trend towards non-union agreements in the commercial construction industry, which can provide builders and subcontractors with a significant competitive edge.” in pattern union agreements) can provide for significant medium-term labour cost savings. There is an increasing trend towards non-union agreements in the commercial construction industry, which can provide builders and subcontractors with a significant competitive edge. When members enter into a CFMEU EBA, they may be unaware that it contains a range of commercial interests from which the union may derive a financial benefit. For example, the current ACT CFMEU pattern EBA requires employers to:

• • • • •

use Creative Safety Initiatives (CSI) for employees’ vocational training; make donations to Construction Charitable Works; provide for income protection insurance via Built-Plus; pay into CBUS as default or even mandatory superannuation fund; make redundancy contributions to Australian Construction Industry Redundancy Trust.

CANBERRA BUILDING NEWS I EDITION 2-2015

2014 Interim Report, the Royal Commission found that the ‘CFMEU’s self-interest has sometimes led its officers to procure employers to sign enterprise agreements by unacceptable means’, including ‘possible criminal conduct and extortion’, i.e. whereby employers are threatened with exclusion from the market if they do not sign an EBA which contains union business interests. In one case-study undertaken by the Royal Commission, it considered the experience of Universal Cranes (a Queensland Crane subcontractor) following its refusal to sign a CFMEU EBA. The reason for the company’s refusal was that the benefits offered by the various union entities embedded in the EBA (in particular BERT, as redundancy trust fund, and CIPQ, an income protection insurance scheme) could be provided by the company itself at lower cost, while in no way disadvantaging employees. However, as a result of Universal Cranes refusal to use BERT and CIPQ, the company was subjected to a ‘protracted campaign of industrial blackmail and extortion’ (including intimidation of builders to cease engaging Universal Cranes) which eventually led to the prospect of

redundancies, at which point the company agreed to use BERT and CIPQ under effective economic duress. Senior officers of the Queensland branch of the CFMEU have now been referred to the Queensland Director of Public Prosecutions for extortion as a result. Apart from an extraordinary demonstration of how the commercial self-interest of the CFMEU can lead it to attempt to actually destroy workers’ jobs, the case study sheds light on how union EBAs can lead to employers and employees being effectively ‘taxed’ by the union’s commercial interests, thereby artificially and unnecessarily inflating labour costs. Master Builders has undertaken research into the comparative costs of the ACT CFMEU pattern EBA and a notional non-union EBA. Even if the hourly rates in the ACT CFMEU pattern EBA are maintained and reasonable annual wage increases applied1, if the various payments to union entities are removed (or restricted to their minimum, e.g. for superannuation contributions) after a period of 10 years, labour costs under the non-union EBA would be approximately 15% less than under a union EBA. Given that most business income is spent on labour costs, that is a significant competitive advantage, enabling companies with non-union EBAs to win a greater market share, while offering employees a comparable take-home wage. There is precedent for this shift. In Western Australia, about 90% of the commercial construction sector is now dominated by builders and subcontractors with nonunion EBAs. The wedge that commenced the progression towards non-union EBAs was the Buckridge Group of Companies (BGC) led by Len Buckridge, who grew his company from a manufacturer / supplier of building products into a construction company in its own right, following the CFMEU’s attempted black-ban on his building products. As a builder, BGC entered into non1

union EBAs and consistently refused to comply with the CFMEU’s unlawful demands to utilise CFMEU-nominated subcontractors, instead respecting subcontractors’ rights to enter in either union or non-union EBAs. Although a second-tier builder, the resulting freedom of competition and cheaper labour costs enabled BGC to win an increasing share of the market, to the point where companies which were signatory to the CFMEU EBA were no longer able to compete – leading them to follow suit with non-union EBAs of their own. Incredibly, this has led the CFMEU to offer a wage decrease under its most recent EBA, at a discount of about 20%, as it tries to woo back employers. While the pattern ACT CFMEU pattern EBA will expire in March 2016, members can lawfully negotiate nonunion EBAs directly with employees before that date. If a majority of employees approve the non-union EBA, an application can be made to the Fair Work Commission for certification. The non-union EBA will then simply commence operation once the union EBA expires (i.e. March 2016). Master Builders has a template non-union EBA which can be provided to members and can assist with negotiations and approval processes. On 3 July 2015, between 7.30 am and 9.30 am, at Master Builders’ offices at 1 Iron Knob Street, Fyshwick, Master Builders will host a seminar explaining how members can exercise their rights to enter into enterprise agreements directly with employees.

E.g. 3.5% (about CPI) instead of the usual CFMEU demand of 5%.

CANBERRA BUILDING NEWS I EDITION 2-2015

WORK HEALTH & SAFETY ADVISOR PHILIP EDWARDS

CHANGES TO THE SCHEME; THE COMMISSIONER’S UNDERSTANDING At the last Civil Sector Council meeting Mr Alan Edwards, Federal Safety Commissioner spoke to the members present. Mr Edwards discussed the changes to the Australian Government Building and Construction WHS Accreditation Scheme (the Scheme) which came in effect on 1 January 2015. The changes were announced on Wednesday, 22 October 2014 by Senator The Hon Eric Abetz and The Hon Josh Frydenberg MP in a joint media release “Better safety and less red tape under streamlined building scheme”. Mr Edwards highlighted to the members, Scheme accredited firms experienced lower serious incidents rates, lower workers’ compensation costs, and higher staff retention! The Commissioner also briefly discussed some of the headline changes, including1:

• • • • •

increasing financial thresholds - direct funding from $3million to $4million, and indirect funding from $5million to $6million; projects involving the construction of “individual-dwelling” houses are no longer covered by the Scheme; removing the prerequisite for AS/NZS 4801:2001; extending joint venture arrangements to domestic firms; and the Scheme accreditation meeting prequalification of work health and safety requirements for all State and Territory “Schemes” (for civil and commercial construction projects).

But the majority of the discussion was around:

• • • •

extending maximum period of accreditation; the targeted, risk-based compliance model; streamlined application and re-application processes; and improved guidance material.

The changes were highlighted in the Canberra Building News, Edition 4-2014.

CANBERRA BUILDING NEWS I EDITION 2-2015

Extending maximum period of accreditation The maximum accreditation period has been increased from three years to up to six years for consistent “high performers”. The Scheme’s compliance arrangements has moved to a targeted, risk based model from a one-size-fits-all approach. All accredited companies will be subject to more regular site audits, but more audit resources and support will be directed to companies requiring further improvement. High-performing companies will have the opportunity to be accredited for up to six years. “High performers” will be those companies that consistently demonstrate excellence in safety though the Scheme audits, i.e. no major incidents or major non-conformances. A targeted, risk-based compliance model A risk-based compliance model has been introduced. This should better target audit resources at accredited companies requiring additional support or with poor safety performance. All accredited companies will continue to be subject to regular audits, the compliance burden should be reduced for companies with a “demonstrated good safety performance” over time. Interestingly the risk base is not based on the risk of the project, but the perceived risk of the accredited company. Streamlined application processes and improved guidance material A range of administrative improvements have been introduced by the Office of the Federal Safety Commissioner. This include new guidance material to assist companies to understand the requirements when applying for accreditation, and to better prepare for on-site audits. The guidance material includes examples of what will meet and, more importantly, won’t meet the Scheme’s criteria. Also, each accredited company will have a single point of contact in the Office, so the accredited

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companies will only be dealing with the one person. Additionally, an online application and reaccreditation process (FSC Online) has been launched. This process should reduce time taken to become to be accredited and become accredited. Mr Edwards discussed concerns raised with the difference in interpretation of the Work Health and Safety legislation between the Office of Federal Safety Commissioner and WorkSafe ACT. The Commissioner stated he had discussions with the WorkSafe Commissioner to “sort out” the difference and believes the two organisations are currently delivering the same message, especially on Safe Work Method Statements. In conclusion, Mr Edwards encouraged all companies, large or small, to become accredited believing the Scheme provided benefits to all companies, including their contractors, in managing safety. Whether the changes to Scheme improves it, time will only tell; but, it is good to know that the Commissioner is listening to organisations such as Master Builders ACT and taking on board the feedback given. For more information please contact Phil Edwards, Work Health & Safety Advisor, on (02) 6280 9119.

When you need room for a business meeting or a training program, there is always a professional solution in the Master Builders ACT training facility located next to the Canberra Outlet Centre in Fyshwick. We offer rooms of various sizes, from comfortable one-on-one interview rooms, training and meeting rooms accommodating up to 60 people, or for that very special meeting the Master Builders ACT Boardroom is also available for hire. Your guests will not have to find or pay for parking as our site has 120 free car parking spaces. With flexible room lay-outs and seating arrangements, choose classroom, theatre or boardroom style. The dedicated Master Builders staff are trained to ensure your event is a success.

For further information contact, Master Builders Group Training - (02) 6280 9119

CANBERRA BUILDING NEWS EDITION 3 - 2011

MULTI-PURPOSE TRAINING & MEETING FACILITIES, TAILORED FOR YOU… AND NEAR YOU!

From left to right: Kirk Coningham OAM, John Nikolic, Mike Kane, Valdis Luks and Jerry Howard

BORAL CEO, MIKE KANE SPEAKS TO THE MEMBERS AT THE HYATT HOTEL IN MARCH

Boral and Kane’s evidence has been highly influential. Both the Commission’s Interim Report and recently released Discussion Paper outlining potential reforms devote considerable space to it and responds to the issues it raises. Many of these reforms have been called for by Master Builders’ submissions to the Royal Commission which was also recognised in the Discussion Paper.

It’s not hard to see why Master Builders’ President’s Luncheons are a sort after invitation when Boral CEO Mike Kane addressed a very special luncheon in March at the Hyatt Canberra. If you had to name a new and compelling voice to emerge from the Royal Commission into trade union Governance and Corruption, Mike Kane would be a top pick. Boral’s evidence to the Royal Commission provided the latest comprehensive example of how the toxic culture and practices of the CFMEU hurt the industry and the community. Kane’s riveting testimony gave first hand authenticity to an all too familiar account of how bilders and suppliers can intimidate and coerced by the union. Boral has been subjected to secondary boycotts by the CFMEU in Victoria since 2012, the union implementing brutal black-bans as part of its war against Grocon as the company has refused to sign up to the union’s unproductive pattern EBAs.

Mike Kane with members of the Master Builders ACT 14

CANBERRA BUILDING NEWS I EDITION 2-2015

ACT GOVERNMENT IMPLEMENTS ELECTRONIC TENDERING The ACT Government (the Territory) will implement an electronic tendering system - Tenders ACT - on 1 July 2015. The following information is provided in response to a request from industry to keep as many people as possible informed of the new arrangements. Electronic tendering is consistent with the Government’s commitment to streamline processes, eliminate duplication, and provide more opportunities for local businesses in the tendering process. It also accords with one of the recommendations of the Master Builders ACT Procurement Policy paper, which sought to reduce red tape by eliminating requirements for paperwork to be provided at tender stage. The introduction of Tenders ACT is an important milestone that will contribute to the Territory’s vision for a Digital Canberra and is in line with the increased take up of digital technologies across the building and construction industry. Electronic tendering also supports the Government’s sustainability agenda. Tenders ACT will provide a structured and consistent framework for tendering in the Territory and will bring improved efficiency in the tendering process to benefit industry and Government.

How does Tenders ACT impact my business? How will I benefit?

•

Tenders ACT will replace manual and paper-based tendering processes with electronic processes.

•

From 1 July 2015, Territory procurement opportunities will only be advertised through Tenders ACT. Businesses will need to be registered to be able to download the tender documents. Only registered users will be able to lodge responses electronically through the secure Electronic Tender Box.

•

Organisations will only need to register once to use Tenders ACT. The primary contact can then add additional users as required.

•

A significant benefit to industry is time and cost savings arising from electronic lodgement – tenderers will no longer need to need to print, bind and deliver hard copy responses to a physical tender box in Canberra.

•

Detailed information about how Tenders ACT will operate, including details of system requirements is available at www.procurement.act.gov.au/About/ACT-Governmentintroduces-electronic-tendering.

Under Tenders ACT, individuals and businesses will be able to register their interest for tenders and to lodge tenders electronically in a secure environment. Suppliers can expect Tenders ACT to significantly reduce the administration and cost associated with tender submission, particularly with regard to existing requirements for publishing and submitting duplicated paperwork.

•

Tenders ACT will Go Live on 1 July 2015.

•

By improving and streamlining the tender receipt and registration process, Tenders ACT will enable the focus to shift to tender evaluation, in turn increasing the potential for quick notification of successful tenderers and prompt procurement outcomes for the Territory.

User registrations will commence 25 June 2015. Subscribers to the Territory’s current notification system will receive an email to advise them when registrations open. The email will include a link to the registration page.

•

From 1 July 2015, the Territory will cease print advertising of procurement opportunities.

•

Responses to tenders released after 1 July 2015 must be submitted electronically.

In addition to providing secure electronic lodgement of tender responses, Tenders ACT will provide centralised publication of Territory business opportunities and contracts awarded. Key features include automatic notification of procurement opportunities to registered users and an online forum. Tenders ACT is based on a proven industry solution that is used by the South Australian, Western Australian,Victorian and Queensland Governments. It runs on Java version 1.7 and is compatible for use with commonly used internet browsers.

Key dates to note

What do I need to do now?

•

You do not need to do anything now.

•

If you have concerns about your organisation’s IT infrastructure and/or your ability to take advantage of the Tenders ACT system, please contact us on (02) 6205 9797 or via email at tendersACT@act.gov.au

CANBERRA BUILDING NEWS I EDITION 2-2015

Master Builders ACT’s new Deputy Executive Director, Michael Hopkins

MASTER BUILDERS ACT FAREWELLS JERRY HOWARD, AS MICHAEL HOPKINS STARTS AS THE NEW DEPUTY EXECUTIVE DIRECTOR Master Builders ACT Deputy Executive Director Jerry Howard leaves after 15 years of dedicated and loyal service, with his final day being Friday 1st May.

high regard across the industry and the trust he has developed on all sides has made him a highly effective negotiator. “Jerry’s vision for the Master Builders Skills Centre in Fyshwick has transformed training for the building and construction industry and this facility will benefit the community for years to come.” Valdis said. Jerry’s replacement is Michael Hopkins who joins Master Builders ACT from Master Builders Queensland. Michael has extensive experience in the private sector, has a deep commitment to quality, and also brings an extensive background in town planning. Having started mid May, Michael is already working with members on pressing issues facing the construction industry. “The regular supply of land to build new homes is the life blood for our residential sector. Canberra has some of the worst land shortages in its history and this is taking away work opportunities for the local industry, as well as driving up house and land prices which in turn impacts young Canberrans trying to enter the housing market.” Michael said. “Also, the burden of unworkable regulation strangles the building industry.There are some major issues ahead of us including reviewing a new Building Act, working with the government to improve Variation 306, and making our comments on Draft Variation 343 affecting the ‘Mr Fluffy’ blocks.

Jerry Howard’s farewell function: Jerry’s number one supporter Marie Howard celebrating with Jerry at the farewell.

Master Builders President Valdis Luks said “Jerry’s commitment and contribution to the MBA ACT, to our members and to the people of Canberra, has been outstanding. In particular Jerry has an unmatched knowledge of our local industry. He is held in very

CANBERRA BUILDING NEWS I EDITION 2-2015

“It is immediately obvious that Master Builder’s has a long and successful history in the ACT.The Master Builder’s ACT has existed for around 90 years and many of its members have contributed their whole career to the association. That legacy of contribution from members means it is a great honour to have been appointed the Deputy Executive Director of MBA ACT. I look forward to meeting all members and working with them to serve the ACT building and construction industry.”

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CANBERRA BUILDING NEWS I EDITION 2-2015

WEST BELCONNEN DEVELOPMENT PROJECT The Land Development Agency (LDA) has put forward a proposal to amend the Territory Plan to provide for the development of land at West Belconnen. The land extends northwards from Stockdill Drive along the western boundary of the current urban fringe of the Woodhaven Green golf course and West Macgregor. Bounded on the west by the Murrumbidgee river, the proposal encompasses land identified for residential development in the 2004 ACT Spatial Plan, which was later identified in the 2012 ACT Planning Strategy as part of the investigation area for future urban development. The rezoning amendment will be published as Draft Variation 351 (DV351) and it is anticipated that this will occur on 22 May 2015, when the public will be invited to comment for a period of six weeks. DV351, if approved, will result in the rezoning of land at West Belconnen to facilitate the potential development of three new suburbs of around 6500 dwellings in the ACT along with associated retail and community infrastructure. It will also create a 360ha conservation corridor along the Murrumbidgee River, which forms the western boundary of the area to be rezoned. The LDA has appointed Riverview Projects (ACT) Pty Ltd, a subsidiary of Corkhill Bros, a local family company with a long history in the region, as project manager for the West Belconnen development. Under the terms of a Heads of Agreement signed between the ACT Government and Riverview Projects â&#x20AC;&#x201C; and subject to planning approvals in NSW â&#x20AC;&#x201C; the development will also see the creation of a border adjacent community in NSW on the peninsula of land known as Parkwood, which is landlocked between the ACT border to the south, the Murrumbidgee River to the west and Ginninderra Creek to the east. 18

CANBERRA BUILDING NEWS I EDITION 2-2015

Parkwood will be subject to a separate NSW rezoning under the Yass Valley Local Environment Plan. This NSW approval process is progressing in parallel with DV351; and on 17 April 2015, the NSW Department of Planning and Environment took the first steps in this process by giving the green light for Yass Valley Shire Council to submit a proposal to rezone land at Parkwood. A decision on this Parkwood rezoning is expected in the last quarter of 2015. If approved there will be potential to accommodate a further 5000 dwellings and to add a further 220ha to the conservation corridor. This will bring the total area of rezoned land to around 1600 hectares, of which around 800 will be suitable for development, with the potential yield for the whole site being around 11,500 dwellings.

Outside the estate, studies conducted for the project have identified requirements for the augmentation of the major arterial road network, including Stockdill Drive, Southern Cross Drive, Drake Brockman Drive and William Hovell Drive. Further, the project is considering the value of extending Ginninderra Drive from its current terminus in Dunlop to create a third major access route into the estate. This completion of Ginninderra Drive would also necessitate the building of an elevated section of roadway across Ginninderra Creek and sensitive areas of endangered species habitat. This augmentation of the road infrastructure outside the estate to cater for traffic growth will be developed gradually in stages over the life of the project. However, as existing capacities are approached, some of these works will represent significant expansions of the existing road capacities, and therefore major civil works opportunities. The works will also include the introduction of traffic calming and noise mitigation measures.

The 2012 Planning Strategy identified a requirement for around 200,000 new dwellings in Canberra for the next 40-50 years, half of which would be met through infill. With 100,000 greenfield dwellings required over this period, approval of West Belconnen will ease the burden on releases in North Gungahlin and East Molonglo as the Territory’s only existing major sources of supply for greenfield land. Assuming average land releases at West Belconnen of around 300 dwellings per year, the anticipated life of the project is close to 40 years. The LDA’s current Indicative Land Release Program 2014/15– 2017/18 has scheduled the release of 250 West Belconnen blocks in 2015/16. The same number is scheduled for the following year, with 300 releases in each of the subsequent years of the program. To meet the ACT Government’s target of West Belconnen releases before July 2016, planning approvals will need to be secured by late 2015, to be followed by servicing construction in second half of 2016. House construction can then hopefully commence in the latter stages of 2016, or early 2017. NON-HOUSING CONSTRUCTION This project will create significant new infrastructure works both inside and outside the development area. Within the estate there will be early requirements for major stormwater and sewer infrastructure connecting the estate to the Lower Molonglo Water Treatment Plant, and major road works of a scale commensurate with such a large project. Water Sensitive Urban Design (WSUD) throughout development will also create civil works opportunities; as will plans, subject to agreement with other private land owners, to re-open the Ginninderra Falls and to expand its tourist potential.

The project will have a significant impact on the Kippax Group Centre, giving rise to the need for expansion of the retail and commercial precinct and the introduction of additional car-parking, probably in basements under an enlarged centre. The nature and scope of these changes is currently the subject of a master planning process being undertaken by the ACT Planning Authority. Finally, the project will create new recreational opportunities in the conservation corridor that will include the confluence of the Murrumbidgee River and the Ginninderra creek, and others in the reclaimed landfill site in the centre of the development zone. These plans will all provide new civil engineering work opportunities for the building industry.

CANBERRA BUILDING NEWS I EDITION 2-2015

HUMAN RECOURCES MANUAL UPDATED FIFTH EDITION

The Human Resources Manual offers Members with strategies about day-today management, offering tailored guides for record keeping, privacy, confidentiality, performance management as well as pro forma letters and contracts.

The building and construction industry is extremely complex. Not only do employers need to contend with the complicated process of building and its numerous laws and regulations, but they are responsible for the day to day management of their employees. People management is a job in itself, and no employer can be fully prepared for every workplace relations issue that may arise. That’s why the Master Builders Association of the ACT has created this Human Resources Manual. The Human Resources Manual provides employers in the building and construction industry with practical guidance about employment laws. The Manual includes information regarding:

• • • • • • •

recruitment; induction; record keeping; discrimination and bullying in the workplace; dealing with unions; performance management and redundancy; and termination of employment.

The Manual is regularly updated, with recent changes to the template contracts and visa options. Further information If members have any further information about the Manual or would like to purchase a copy, please contact the Industrial Relations Department on (02) 6247 2099.

CANBERRA BUILDING NEWS I EDITION 2-2015

Strong business foundations are built on quality insurance advice As the preferred broker of the Master Builders Association, let Austbrokers Canberra provide your business with specialist advice and local knowledge for all your insurance needs.

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CANBERRA BUILDING NEWS I EDITION 2-2015

FEDERAL BUDGET OFFERS BIG WINS FOR BUILDERS At the Parliament House budget breakfast on 13 May the Federal Minister for Small Business, Bruce Bilson, admitted that small business had “lost its mojo”.The clear objective of this budget is to inject that mojo directly into the heart of the private sector through a massive $5.5 billion small business package. This could not be better timed for the ACT.The budget will lift confidence and productivity in the ACT at a time when our economy desperately needs to empower a re-emergent private sector.

This is another investment in productivity. For Master Builders here in the ACT this will be further opportunity to invest in quality training. We hope it provides the boost needed to turn others away from so called ‘miraculous’ training where skills that should take months or years to learn are granted, with the wave of a wand, in weeks or days. Productivity in our industry relies at its heart on the quality of our training. The talk around town is that the ACT economy is either bottoming out, or showing some signs of green shoots. This budget fertilises new growth in a field that is crucial to the Territory. MBA-ACT welcomes it as a positive step forward for our industry and the community more broadly. As the Government tries to put the nation on a sustainable pathway of economic growth, Federal Treasurer Joe Hockey announced a $5.5 billion growth package aimed at stimulating small business and entrepreneurship throughout the country. Economic Outlook

Master Builders ACT Executive Director Kirk Coningham said “Around 4000 small businesses are engaged in the Territory’s construction sector. Many of these businesses will benefit directly from tax cuts. Perhaps more importantly, the package also presents a real opportunity to invest in productivity. “Tax concessions will encourage our businesses to invest in the tools that allow them to do a better job more efficiently. The advantages in quality and time will be shared through a better deal for consumers and communities and more profits for business.

The outlook for the Australian economy remains positive. Historically low interest rates, a lower oil price and a lower exchange rate are all working together to support strengthening economic growth. Dwelling investment continues to grow strongly and household consumption grew at its fastest rate in almost three years in the December quarter 2014. Exports are also expanding rapidly as resource production ramps up and the lower exchange rate supports services sectors, such as tourism. Housing construction is responding positively to accommodative monetary policy, strong growth in house prices as well as solid population growth. A significant pipeline of approvals suggests that the upswing in dwelling investment still has some way to run and growth is forecast to be 6½ per cent in 2015-16 and 4½ per cent in 2016-17. Tax Cuts for Small Business

“The inducement to invest comes at a time of record low interest rates that make money cheap but also make investing in our own capacity a significantly more attractive business prospect in terms of comparable return on investment.” Mr Coningham said. The budget also provides for an investment of around $6 billion this year to support apprentices and vocational students in training. This includes the $664 million previously announced for the Industry Skills Fund for more than 250,000 training places and support services including skills advice for micro, small and medium businesses.

CANBERRA BUILDING NEWS I EDITION 2-2015

The company tax rate for incorporated small businesses will be reduced by 1.5 percentage points, to 28.5 per cent. The tax cut will apply to almost 780,000 small businesses, with annual turnover less than $2 million. The tax cut will apply from 1 July 2015, meaning companies with Pay As You Go instalments can benefit from their first payment after 1 July 2015. While the Federal Government will be cutting the company tax rate for small businesses (from 30 to 28.5 per cent), the franking credit rate will be unchanged at 30 per cent. According to the Budget papers, this means incorporated small business owners will pay less tax, providing certainty for investors such as selffunded retirees.

Tax discount for unincorporated businesses

The Federal Government has announced all small businesses will get an immediate tax deduction for any individual assets they buy costing less than $20,000. This is a substantial increase in the current threshold of $1,000 per item. The new $20,000 limit applies to each individual item, with small businesses being able to apply the new $20,000 rule to as many individual items as they wish. The new arrangements start Budget night and continue until the end of June 2017. According to the Federal Government, increasing the depreciation threshold will mean improved cash flow for small businesses, and encourage them to bring forward investment in the assets they need to form and grow their businesses.

million previously announced for the Industry Skills Fund for more than 250,000 training places and support services including skills advice for micro, small and medium businesses. The previously announced Australian Apprenticeship Support Network, to be operational from 1 July 2015, will support more than 350,000 apprentices in the first year of operation with the budget providing up to $200 million in 2015-16. In addition, around 78,000 employers are expected to receive incentive payments in 2015-16 to help with the costs of employing and training an apprentice. The Budget provides $1.8 billion to continue the Government’s funding to states and territories to support their training systems, where over 1.5 million students will gain skills and nationally recognised qualifications. The Budget also provides record funding to enable students to undertake higher level diploma and advanced diploma training through VET FEE-HELP. Also previously announced the Government will introduce tougher Standards for Registered Training Organisations with $68.7 million over four years to support the Australian Skills Quality Authority to undertake regulatory reform and enforce standards. The Budget outlines savings of $1.6 million over five years by replacing seven vocational education and training governance bodies with the Australian Industry and Skills Council. This includes the Data and Performance Measurement Principal Committee, the Workforce Development, Supply and Demand Principal Committee; and five bodies identified in the Mid-Year Economic and Fiscal Outlook 2014-15 for abolition.

Work Related Car Expenses

Go to www.mba.org.au for the full Budget report.

The Federal Government has announced a new tax discount for unincorporated small businesses. Under the new arrangements, unincorporated businesses with annual turnover less than $2 million will get a 5 per cent tax discount, effective from 1 July 2015. The new arrangement is expected to benefit the more than 1.5 million small businesses who operate as partnerships, sole traders or the like. This tax cut is broadly in line with the 1.5 percentage point tax cut for small incorporated companies. The discount will be capped at $1,000 per individual in an income year, and it will be delivered as a tax credit in their tax return. Accelerated Depreciation

The Federal Government has announced changes to the methods used to calculate deductions for work-related car expenses. Key changes include ending the current ’12 per cent of original value’ and the ‘one third of actual expenses’ methods, which the Federal Government says are used by just 2 per cent of those claiming such expenses. Under the new arrangements, a new rate of 66 cents per kilometre will apply to all vehicles, regardless of engine size. The ‘log book method’ used for calculating expenses will be retained. According to the Federal Government, the changes will better align car expense deductions with the actual, average costs of operating a motor vehicle, and will amount to a revenue gain of some $845 million over the next four years. Training The Government has been proactive in the area of training over the past year and as a result there are no significant announcements for new training policy or funding in tonight’s budget. The Government will invest around $6 billion this year to support apprentices and vocational students in training. This includes the $664

UNDER THE CHANGES INCORPORATED BUSINESSES (i.e. companies) with a turnover of less than $2 million will receive a 1.5 percent cut in the company tax rate from 30 percent to 28.5 percent. UNINCORPORATED BUSINESSES (sole traders, partnerships etc.), which include the majority of tradespeople and many sole traders within the construction sector, will receive a 5.0 percent ‘tax discount’ on tax payable on their business income. For the next two years, all small businesses will receive a full and immediate tax deduction for any individual assets they purchase up to a value of $20,000 (up from $1,000). This measure ends on 30 June 2017.

CANBERRA BUILDING NEWS I EDITION 2-2015

MASTER BUILDERS ACT PARTNERS WITH THE LDA FOR THE MONCRIEFF DISPLAY VILLAGE After an extensive evaluation process 12 Master Builders have been selected to participate in the new Moncrieff Display Village. Due to open in March 2016, the Moncrieff Display Village will showcase 12 single and double storey homes that demonstrate innovation in design, sustainability initiatives and provide examples of livable housing standards. ABOUT MONCRIEFF Located approximately 4km north of the Gungahlin Town Centre, Moncrieff is bound by Horse Park Drive to the north and the existing suburbs of Ngunnawal and Amaroo to the south and east. Moncrieff will be developed by the Land Development Agency and is planned to include up to 2,200 dwellings, a group centre, community facilities, parks and playground areas. The estate will comprise a mixture of single residential, medium and high density multi unit developments. Significant hilltops and ridges will be retained as urban open space and there will be ponds throughout the estate which include views to the hills between Jacka and Taylor.

CANBERRA BUILDING NEWS I EDITION 2-2015

THE MONCRIEFF DISPLAY VILLAGE PREFERRED PARTNERS PROGRAM Partner opportunities are available for suppliers and businesses to showcase their products and services at the Moncrieff Display Village and via Master Builders ACTâ&#x20AC;&#x2122;s publications, web site and information sessions. To find out more go to: http://www.mba.org.au/consumer_advice/moncrieff/ or call David Leitch on Ph: (02) 6175 5970.

T HE MONCRIEFF DI SPL AY V IL L AGE BUIL DER S

ACHIEVE HOMES -------------------------------APA HOMES -------------------------------ELEVATED LIVING -------------------------------GJ GARDNER HOMES -------------------------------GRACIOUS LIVING CONSTRUCTIONS -------------------------------J & F HOMES

MCDONALD JONES HOMES -------------------------------MBS HOUSING -------------------------------RAM CONSTRUCTIONS -------------------------------RAWSON HOMES -------------------------------RENAISSANCE HOMES -------------------------------SEKISUI HOUSE

CANBERRA BUILDING NEWS I EDITION 2-2015

INQUIRY SPLITS ON COMMONWEALTH ROLE IN HOUSING POLICY A SENATE INQUIRY into affordable housing

has backed away from outright opposition to negative gearing for housing investment. The inquiry, by the Senate Economics Committee, said the impact of negative gearing required further examination.

The inquiry, ordered by the Senate in December 2013 and chaired by high-profile Labor Senator Sam Dastyari, split along party lines, with Labor and Greens senators arguing the Federal Government needed to re-establish its role in coordinating national housing policy through the Council of Australian Governments, and Government senators arguing policy should be left to the states and territories. In its majority report the Committee said, “Sustained growth in median housing costs above the rate of median household income growth in recent decades has made it increasingly difficult for a growing proportion of Australians to afford housing that is safe, secure and appropriate to their needs. Added to the general decline in housing affordability, and indeed compounding the trend, the stock of affordable housing—that is, housing appropriate to the needs of low- to moderateincome households—has failed to keep pace with demand in recent decades.” The Committee said a large amount of the evidence it received concerned the effect on affordability of negative gearing and the capital gains tax discount on owner-occupied housing. “ The committee

CANBERRA BUILDING NEWS I EDITION 2-2015

recommends that the Australian Government investigate the effect of the current taxation treatment of investment housing on home purchase affordability (among other things), and consider if alternative approaches would help improve affordability.” Master Builders Australia in its submission to the inquiry argued that Federal, state, territory and local governments needed to deliver a National Housing Affordability Agenda including: •

•

local governments to develop individual Land Release Plans and associated marketing strategies over a ten year rolling time horizon; the realisation of a genuine, rigorous, enforceable, transparent and uniform building code and regulatory system; and review the impact of stamp duties on residential property.

The majority report said the Commonwealth and states and territories should: • •

•

“The Federation White Paper process seeks to complement (and not duplicate) the analysis provided in a number of other reviews that more fully address broader housing affordability pressures.”

establish a ministerial council on housing and homelessness within COAG; develop a long term, national affordable housing plan through a new ministerial council on housing; and re-establish the National Housing Supply Council with responsibility for monitoring performance against a new affordable housing plan.

In their dissenting report Government senators opposed the Committee’s recommendation to establish a Ministerial Council on housing and homelessness and said, “The Abbott Government is not vacating the affordable housing space or stepping back from its responsibilities. It is addressing the matter directly by supporting the Senate Inquiry and developing an Issues paper directly addressing the issues of affordable housing and homelessness in Australia. “The Federation White Paper process seeks to complement (and not duplicate) the analysis provided in a number of other reviews that more fully address broader housing affordability pressures.” They said “The outcomes from the Senate Inquiry will be considered as part of this process. However the Government has a clear approach to regulation: to reduce the regulatory burden for individuals, businesses and community organisations. Cutting existing red tape and limiting the flow of new regulation is a high priority and this has been considered whilst analysing the recommendations.”

ST.GEORGE SUPPORTING LOCAL HOME BUILDERS St.George Business Bank has recently launched a new lending product specifically aimed at supporting Canberra Region Home Builders.The new product is called a Builder’s Limit. Builder’s Limit is all about streamlining the process of funding proposals from residential builders for the acquisition of residential blocks of land and construction of dwellings on an ongoing basis for the ultimate purpose of resale. Residential blocks will include any separate title blocks that allow for up to three dwellings, including cottage or courtyard blocks and dual or tri occupancy. The geographic location of blocks able to be funded through this product will be in the ACT and immediate region i.e. Queanbeyan, Jerrabomberra, Googong and Tralee. Once qualified for a Builder’s Limit, a builder will have the comfort and confidence of knowing what parameters are already in place to provide individual funding for them to commit to the purchase of land and construction of dwellings on that land. The individual funding, at various times during the term of the Builder’s Limit, to fund the acquisition of land and construction of dwellings, is then set up through a short form streamlined loan approval and settlement process within the pre-set parameters of the Builder’s Limit. CANBERRA BUILDING NEWS I EDITION 2-2015

Supporting local home builders: Jason Claudianos and Neil Barancewicz from St George Bank talk to Mark Newman from Renaissance Homes at the Moncrieff Display Village site

This streamlining process will provided an effective way of minimising lending application administrative processes. This will create a superior customer experience saving valuable time to focus on other important business activities and providing confidence to plan for future projects. For more information on this product or to commence an application please contact one of the St.George Relationship Managers detailed below.

Neil Barancewicz Relationship Manager Property Finance ACT Mob: 0401 107 710 Ph: (02) 6243 5842 barancewiczn@stgeorge.com.au Jason Claudianos Relationship Manager Property Finance ACT Mob: 0401 877 279 Ph: (02) 6243 5328 claudianosj@stgeorge.com.au

St.George Builder’s Limit Making it easier for Builders in the Canberra Region. • House and land construction funding • Streamlined process – means less paper work • Qualified loans have preapproved limits for loan duration.

We’re here to help, make an appointment today. St George Property Finance Level 1 / 60 Marcus Clarke Street Canberra City ACT 2601 Jason Claudianos – Relationship Manager 0401 877 279 claudianosj@stgeorge.com.au Neil Barancewicz – Relationship Manager 0401 107 710 barancewiczn@stgeorge.com.au Or alternatively 02 6243 5367

© St.George – A Division of Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714. Credit criteria, fees and charges apply. Terms and conditions available on request. 00393 STG 03/15

SELLICK CONSULTANTS 50 YEARS IN CANBERRA Sellick is a name long associated with construction in Canberra and the surrounding region.There is not a suburb in Canberra, and in some suburbs not a street, that hasn’t been influenced by this name – be it in structural, civil, or hydraulic engineering, or a combination of all three. Running continuously for the past 50 years, as either KS Sellick and Associates or Sellick Consultants, there is no question it is the oldest engineering design consultancy in Canberra boasting a rich history with considerable and diverse experience. The company originally heralded from Newcastle, NSW, in 1960 through structural engineering design consultants Quigan and Gan. Recognising an opportunity to bolster their capacity they approached Keith Sellick, then a lecturer at Newcastle University wanting to leave the academic world for the private sector, to form Quigan, Gan & Sellick. John Gan, was an avid snow skier who recognised the great growth and development potential of the nation’s capital

CANBERRA BUILDING NEWS I EDITION 2-2015

with a population then of only 52,000 (later vindicated with a population growth of 250% in the 60’s and a further 170% in the 70’s). With the prospect of picking up the Monaro Mall project with Moteliers, Keith moved to Canberra in 1961. Moteliers missed out on this project, however they encouraged Keith to remain in Canberra with a commitment to provide further work. True to their word, Moteliers provided the start-up work to secure the office in Canberra. Sadly John Gan later passed away in a car accident returning from the snow. With difficulty in securing suitably qualified staff from the local population, the office was serviced largely out of Newcastle. In 1963 the senior office structural draftsman, Keith Perks, moved down to Canberra “on loan” for 12 months. Not unlike many other Canberrans’ story, Keith Perks remained in the office for some 32 years and remains a resident to this day. In 1965 Quigan (moving to Queensland) and Sellick parted ways giving rise to KS Sellick and Associates. John Turyn started as a junior draftsman in 1965, providing a strong link to the migrant building community that was working feverishly

Sellick Consultants: Office blocks, clubs, schools, churches, theatres, warehouses, industrial buildings, ski lodges, and residential development flowed out of the Sellick Consultants office

to support the rapid population growth. John remained with the company until his retirement in 2013. Over the years many great professional relationships evolved, none greater than that of Keith and pre-eminent architect Enrico Taglietti. Together they helped create many key Canberra Buildings. Many embassies, including those for Italy, Switzerland, Saudi Arabia, and The Holy Sea, were delivered with the Sellick touch. Office blocks, clubs, schools, churches, theatres, warehouses, industrial buildings, ski lodges, and residential development flowed out of the office. Work expanded out into the surrounding district including Griffith, Albury, and Wagga Wagga. The early 1970â&#x20AC;&#x2122;s saw Keith open an office in Wagga Wagga for the leagues club, eventually taking on Rod Kendall to form Kendall and Sellick. Locally the office moved from East Row to Thetis Court to 14 Lonsdale Street, and then on to where it now sits in the Mode3 building on Lonsdale Street.

In 1983 Don McInnes worked in a fruit shop under KS Sellick & Associates in Thetis Court, Manuka, and managed to convince Keith to put him on as a cadet. By 1990 Don was running the office and in 1991 took over the business to create Sellick Consultants Pty Ltd - maintaining and growing the structural legacy created by Keith. In a similar manner, Bernie Cusack joined the company in late 1990 as a cadet to go on to become Donâ&#x20AC;&#x2122;s partner in 1998 charged with the responsibility of developing the civil engineering discipline of the business. Brad Williams was the last partner to join the company in 2009 helping to shore up and expand a fledgling hydraulic engineering discipline. Under the stewardship of these directors the company has expanded from a staff of four to a staff of 32 with an office opening in Sydney in 2014. All three disciplines within the company have grown both in technical capability and capacity to be effective business units in their own right. Sellick Consultants is a local business with deep local roots that is justifiably proud of its history in and indelible contribution to the development of Canberra. It has enjoyed 50 solid years of engineering service to the construction industry and remains fiercely committed to and passionate about the ongoing development and prosperity of Canberra. With an exceptional staff, it looks forward to what the next half century might bring.

“IT’S A MAJOR STEP FORWARD FOR THE TUGGERANONG TOWN CENTRE WHICH HAS BEEN REALLY RESTRICTED IN ITS GROWTH AND ITS ABILITY TO DELIVER JOB OPPORTUNITIES AS WELL AS AFFORDABLE HOUSING SO I THINK IT’S A SIGNIFICANT GAME CHANGER.” - ZED SESELJA

FEDERAL GOVERNMENT TO HAND OVER MORE PLANNING TO ACT The Federal Government is proposing to relinquish planning control over large parts of the ACT, opening up more areas for future development. The proposal, which is subject to ACT Government agreement and public consultation, could see the National Capital Authority relinquish planning powers outside the Parliamentary Triangle and central Canberra, easing planning restrictions in Tuggeranong Valley and the Molonglo and Murrumbidgee River corridors. To initiate the proposed changes the National Capital Authority has announced it will review the National Capital Plan and consider changes to:

• • •

Maintain the critical role of the National Capital as the seat of government, and the Australian Government’s responsibility for that role. Clarify the roles and responsibilities for planning in the ACT between the NCA and ACT Government agencies. Revise the format and structure of the Plan to reflect contemporary planning practice and accommodate future planning reform.

Under the plan the ACT Government could have more planning control. “I don’t see that the NCA should take a detailed role in the decision into whether you have housing in the outer suburbs and what type of housing development,” Senator Seselja said. “Surely after 25 years of self-government we should be moving on and having a different arrangements. “At the moment there is a restriction in West Tuggeranong, there is an outright ban on development there, the ACT Government cannot do it no matter what hoops they jump through, so this would remove that ban.” ACT Chief Minister Andrew Barr agreed with Mr Seselja’s comments, but said the changes were going to take time. “This is not a short-term or even a medium-term proposition. It won’t be in many people’s lifetime, but it can and should be undertaken for the longer term future of territory,” he said. Master Builders ACT Executive Director Kirk Coningham backed the proposed changes: “The decision will empower ACT governments to make planning decisions without the process being duplicated and second guessed by the National Capital Authority,” he said.

ACT Liberal senator Zed Seselja wants the changes to open West Tuggeranong for development, an area which is currently under “restrictions from the Commonwealth”.

“The saving in red tape combine with greater land availability to drive prices down, given that the escalating price of land has been the primary driver of housing affordability,” he said.

He said the “more streamlined plan” could cut the cost of housing by ending delays to the rollout of new subdivisions. “It’s a major step forward for the Tuggeranong town centre which has been really restricted in its growth and its ability to deliver job opportunities as well as affordable housing so I think it’s a significant game changer.”

“Sensible arrangements will help ensure that the national character of our city is maintained and promoted – but suburban growth and amenity is a local, not a national, issue. West Tuggeranong is a good example. Commonwealth restrictions partially strangled the original idea and the end result was less amenity for the community and reduced value for everyone.”

CANBERRA BUILDING NEWS I EDITION 2-2015

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BUILDING NEWS IStEDITION Mitchell Depot - 7 Cheney Pl Mitchell CANBERRA : Hume Depot - 15 Alderson Hume 2-2015

THE CONSTRUCTION INDUSTRY COMES TOGETHER TO SUPPORT STAN KOVAC’S FAMILY Prominent Canberra building industry figure Ivan Kovac and his extended family have been “overwhelmed” by the “awesome” response of building industry tradespeople and suppliers to the sudden and unexpected death of his brother Stan.

unions, about poor quality builders and difficulties in getting problems fixed – but this really shows the other side of the building industry, especially in Canberra. “The industry really will pull together in the face of tragedy. “I think it says something very special about the industry and about Canberra. “This project shows the wider community that there are very good people in the construction industry who are more than willing to step in and get the job done in times of tragedy and need.” He said the family has offered to pay tradespeople and suppliers but many have refused payment. People have turned up to work on the Kovac’s house for nothing after putting in a full-day’s work elsewhere. And suppliers have upgraded planned fittings and inclusions from those originally specified – and still refused payment

Stan, a well-known member of the recruitment industry in Canberra, died suddenly in his sleep from a cardiac arrest in September 2014, at the age of 44. He left behind his wife Jelena and two daughters aged four and six.

Flooring and joinery on the house are currently being done and painting is expected to start shortly, Ivan said. He is expecting completion in a few weeks.

Ivan, site manager for Empire Global, said that Stan and Jelena had started building their family home in Wright before Stan died. After his passing, construction stopped for about 3 months while the family took time to mourn Stan’s death and review their mortgage and financial circumstances. In January this year they restarted construction. On hearing the family’s sad news, “many of our suppliers and tradesmen have either cancelled their invoices or committed to donate labour and materials towards the completion of their home while many others have applied extraordinarily heavy discounts to materials in an effort to complete the house for as little cost as possible, in that way contributing to the long term security and future of Stan’s children.” Ivan said he could not sufficiently express his gratitude to all those who have helped with the house – and estimates, based on his knowledge of industry costs – that donations of supplies and labour by the industry have a value of more than $250,000. “We hear so many negative stories about the building industry, about the politics and industrial relations problems, about 34

CANBERRA BUILDING NEWS I EDITION 2-2015

Ivan is compiling a list of all those who have provided time, labour and supplies freely or at discounts and says he can’t thank them enough. “On completion, I intend to hold a BBQ at the house for all suppliers and trades who have helped out in any way so that they can meet Jelena and the girls. It will also provide an opportunity for our family to express our sincere gratitude and thanks to all involved.” Ivan said that Stan was a very passionate man and was involved in and supported many charities during his short life. “Stan will be remembered for the passion he brought to everything that he did, his infectious smile, his raucous laughter and the genuine desire to help his family and friends.”

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Master Builders Association of the ACT would like to thank the following valued sponsors and supporters of the 2015 Master Builders & Cbus Excellence in Building Awards - Celebrating excellence in the building and construction industry NAMING RIGHTS SPONSOR

This year marks the 25th anniversary of the Master Builders and Cbus Excellence in Building Awards

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Finalists for Project Manager of the Year, and On-Site Construction Manager of the Year Below are the 2015 finalists for the Project Manager of the Year, and On-Site Construction Manager of the Year in the 2015 Master Builders and Cbus Excellence in Building Awards

P R O JE CT M ANAGER OF THE YEAR FINALIST JACK TURNBULL, CAPCORP CONSTRUCTIONS

O N- SI TE CO NSTR UCTI O N M A NA GE R O F TH E Y E A R FINALIST BEN OWEN, LEND LEASE BUILDING

PROJECT MERCEDES BENZ SHOWROOM CANBERRA

PROJECT PROJECT AIR 9000 PHASE 8 MH-60R HELICOPTER FACILITIES (HMAS ALBATROSS)

P R O JE CT M ANAGER OF THE YEAR

O N- SI TE CO NSTR UCTI O N M A NA GE R O F TH E Y E A R

FINALIST JOE TONKOVIC, BUILT PROJECT AUSTRALIAN WAR MEMORIAL WW1 GALLERIES REFURBISHMENT

FINALIST DYLAN HUGHES, CAPCORP CONSTRUCTIONS PROJECT MERCEDES BENZ SHOWROOM CANBERRA

P R O JE CT M ANAGER OF THE YEAR FINALIST LAUREN COUTER, CONSTRUCTION CONTROL PROJECT ANU FLOREY BUILDING REFURBISHMENT

O N- SI TE CO NSTR UCTI O N M A NA GE R O F TH E Y E A R FINALIST DANIEL D’AMBROSIO, LEND LEASE BUILDING PROJECT GUNGHALIN OFFICE PROJECT

CANBERRA BUILDING NEWS I EDITION 2-2015

on t s i r A n a ry Win d n u a L d n a g n i k 0 o 0 5 Co , 5 $ h t r o w e g a k pac T C A A B M in the O T O H P K O O B E C N FA O I T I T E COMP In the lead up to the 25th Master Builders and CBUS Excellence in Building Awards, we are featuring all our amazing finalists projects on our Facebook Page. The Master Builders ACT #MBAWinningphoto Competition - sponsored by Harvey Norman Commercial Division.

How is it going to work? 1

Monday 25 May we will post 3 photo albums for categories Civil, Residential and Commercial.

Then it is up to the public to vote! Let all your colleagues, friends and family ‘like’ your photo

The competition closes on Monday 22 June and the photo with the most “Likes” wins

The prize! The builder of the photo with the most “Likes” will win an Ariston Cooking and Laundry package worth $5,500. This includes an Oven, Cook top, Range hood, Dishwasher and Washing machine.

THANKS TO HARVEY NORMAN COMMERCIAL IN MITCHELL, AND ARISTON

CANBERRA BUILDING NEWS I EDITION 2-2015

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CANBERRA BUILDING NEWS I EDITION 2-2015

2015 MBA Group Training Apprentice of the Year: Murray Armour deservedly won this year’s Outstanding Apprentice of the Year award.

2015 MBA GROUP TRAINING APPRENTICE AWARDS

EVENT SPONSORS

Congratulations to all the winners in this years MBA Group Training Apprentice and Cadet Awards. Below are the winners and meritorious achievement recipients from the 2015 awards. 2015 APPRENTICE & CADET AWARD WINNERS

Outstanding Apprentice Outstanding Building Cadet Outstanding UC Student Carpentry Stage IA Carpentry Stage IB Carpentry Stage IIA Carpentry Stage IIB Carpentry Stage IIIA Carpentry Stage IIIB ASBA Plumber Meritorious Plumber Meritorious Plumbing Outstanding

Murray Armour Alahna Lewis Alexander Young Rowan Hennessy Adam Hart Paul Barne Bryce Darmody Liam Collins Murray Armour Geoffrey Cox Harry Granger Jonothan Granger Jordan Lamb

CANBERRA BUILDING NEWS I EDITION 2-2015

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CANBERRA BUILDING NEWS I EDITION 2-2015

“We are very committed to the highest environmental and sustainability outcomes in everything we do. We are proud to be judged the greenest hotel in Australia and will build on the achievement going forward,” Mr Nick Georgalis

ABODE HOTEL IN WODEN NAMED AUSTRALIA’S GREENEST HOTEL Abode Hotel in Woden has been named Australia’s highest NABERS rated hotel with a 4.5 star rating. The rating, announced in Hotel Management magazine in April 13, is awarded by the New South Wales Office of Environment and Heritage. NABERS is Australia’s only independently assessed and government audited environmental rating system. The program rates buildings for sustainability and efficiency according to a six-star rating system. Abode Woden received the 4.5 star rating for its adaptive reuse of an older office building Juliana House, and maintaining its sustainability and environmental outcomes in its daily operations. Managing Director of Abode Hotels and parent company GEOCON, Nick Georgalis, welcomed the rating. “We are very committed to the highest environmental and sustainability outcomes in everything we do. We are proud to be judged the greenest hotel in Australia and will build on the achievement going forward,” Mr Georgalis said. Director of the Metropolitan Branch in the NSW Office of Environment and Heritage, Tom Grosskopf, welcomed the sustainability efforts of the hotel.

CANBERRA BUILDING NEWS I EDITION 2-2015

“Abode Woden is the most energy efficient hotel certified in Australia in the past 12 months and their 4.5 star NABERS Energy rating makes them a sustainability leader in the hospitality sector and demonstrates how NABERS is improving the environmental performance of Australian cities,“ Mr Grosskopf said. “We are pleased to see Abode Woden using NABERS to prove their commitment to sustainability to their customers and the rest of the industry. I am pleased that they are receiving the recognition they deserve,” Mr Grosskopf said. Abode Woden is also on track to receive a Green Star rating from the Green Building Council of Australia. GEOCON plans to continue sustainable and environmentally conscious hotels and developments. For further information please contact Amy Brosnan – Public Relations Coordinator for GEOCON and Abode Hotels Phone: 02 6255 0430 Mobile: 0412 656 305 Email: amy.brosnan@geocon.com.au

MBA GROUP TRAINING

provides continual learning opportunities through industry training and education services. Safe work practices within the industry are a priority with the Master Builders and expert advice is available in a range of areas including occupational health and safety requirements, industry codes of practice, education and training. MANUAL HANDLING Manual Handling injuries account for around 40% of all accident statistics in the workplace. In order to reduce injuries and workers compensation costs, it is essential to practise correct manual handling techniques. The aim of this training course is to provide participants with the knowledge and skills necessary to identify potential hazards, understand the associated risks and implement control measures to minimise their risks.

Content • • • •

Terminology Acute and Chronic Injuries Hazards and Risks Control Measures

BULLYING & HARASSMENT Workplace bullying is a serious matter that affects approximately two thirds of Australian Workers. Bullying in the workplace can lead to serious psychological and/ or physical health problems. This course aims to create awareness of the problems and their solutions.

Content • • • • •

Understanding the problem Work safety legislation Risk factors Reporting Responding to bullying

HEALTH & SAFETY REPRESENTATIVE TRAINING The introduction of the Work Health and Safety Act 2011 places a duty on all Persons Conducting Businesses or Undertakings (PCBUs), regardless of size, to develop a consultative arrangement on all matters that directly affect work safety. Part of this process includes the establishment of Health and Safety Representatives (HSRs) and Health and Safety Committees (HSCs). Master Builders has developed an extensive and practical program to train Health and Safety Representatives for the building industry in compliance with the Act. This course is approved by the ACT Work Health and Safety Commissioner.

For more information about training opportunities contact MBA Group Training: T 02 6280 9119 F 02 6280 9118 E training@mba.org.au www.mba.org.au/training CANBERRA BUILDING NEWS I EDITION 2-2015

“THE AWARDS ARE A SHOWCASE OF EXCELLENCE IN THE LOCAL INDUSTRY – SHOWING CLIENTS AND OUR COMMUNITY THAT OUR LOCAL INDUSTRY IS WORLD CLASS.” - KIRK CONINGHAM

Category 3 Winner: Canberra Contractors won Category 3 for their work on Campbell Section 5 and Constitution Avenue

2015 ACT CIVIL CONTRACTORS FEDERATION EARTH AWARDS This year saw a record number of entries with 17 different projects across four categories.The CCF Earth Awards are the most prestigious awards in civil infrastructure recognising excellence in construction and design for projects including roads, bridges, railways, marine structures and utilities that are the economic arteries that link the Canberra community.

2015 CCF EARTH AWARDS WINNERS

Kirk Coningham Executive Director of the Master Builders Association of the ACT and CEO of the ACT branch of the CCF said the night was marked by true innovation.

CATEGORY 3 PROJECTS $10 MILLION - $30 MILLION CANBERRA CONTRACTORS

”The judges agreed that the calibre of entries this year was amongst the best on record,” Kirk said. “It was an exciting night with industry leaders sharing ideas and celebrating success across the categories and disciplines. “The awards are a showcase of excellence in the local industry – showing clients and our community that our local industry is world class.

CATEGORY 1 PROJECTS UP TO $2 MILLION HUON CONTACTORS CATEGORY 2 PROJECTS $2 MILLION - $10 MILLION HAWKINS CIVIL & SRG

CATEGORY 4 PROJECTS $30 MILLION - $75 MILLION GUIDELINE ACT “All the projects this year presented a high quality of workmanship, innovative use of materials and impressive problem solving solutions with challenges that arose during construction.” The night also featured Daniel Keighran VC as the guest speaker. Daniel’s captivating speech about his experiences both growing up in outback Queensland and his journey with the Defence Force on deployments in Afghanistan, Iraq and East Timor inspired all. The ACT winners will compete at the National level on 17 October 2015 in Melbourne.

CANBERRA BUILDING NEWS I EDITION 2-2015

Category 1: Huon Contractors - National Arboretum Canberra, Construction of Transfer Reservoir and Irrigation Mainline

Category 2: Hawkins Civil and SRG - Scrivener Dam Anchor Bolt Remediation.

Category 3: Canberra Contractors - Campbell Sect 5 and Constitution Ave.

Category 4: Guideline ACT - John Gorton Drive. CANBERRA BUILDING NEWS I EDITION 2-2015

Guest speaker: Corporal Daniel Keighran VC was the guest speaker for the evening and a crowd favourite.

Category 3 Winner: Hawkins Civil and SRG - Scrivener Dam Anchor Bolt Remediation.

CANBERRA BUILDING NEWS I EDITION 2-2015

CANBERRA SAND AND GRAVEL

“ALL THE PROJECTS THIS YEAR PRESENTED A HIGH QUALITY OF WORKMANSHIP, INNOVATIVE USE OF MATERIALS AND IMPRESSIVE PROBLEM SOLVING SOLUTIONS WITH CHALLENGES THAT AROSE DURING CONSTRUCTION.”

CANBERRA BUILDING NEWS I EDITION 2-2015

Alisa Taylor & Kate May - Meyer Vandenberg Lawyers

THE THING ABOUT CAVEATS… We have been involved in a number of matters recently where the right to lodge a caveatable interest was in dispute. Caveats are the ‘go to’ security for many in the building industry, because the asset at the heart of the relationship is invariably a property. But often insufficient thought is given to whether registering a caveat over the land is really going to help recover the debt. Here are some things you should know. WHAT IS A CAVEAT? A caveat is a place-holder. It is registered against the title of a property and prevents the owner from dealing with the land without the consent of the person who registered the caveat (the caveator). It does not give the caveator the right to do anything with the land. WHEN CAN I LODGE A CAVEAT? A caveat must be supported by a proprietary interest in the land. Recent cases in New South Wales and Western Australia have held that simply putting a clause in a contact that says you can lodge a caveat over another person’s land does not, of itself, create a caveatable interest in that land. It is crucial that the contract itself creates some kind of property rights in the land. This might be expressly stated or implied from the context of the agreement.

CANBERRA BUILDING NEWS I EDITION 2-2015

In the context of a building contract, a caveatable interest will exist if there is a clause in the contract allowing the builder to register a caveat over the land AND the contract expressly grants the builder a charge over the land. The MBA’s standard residential building contract has a ‘caveatable interest’ clause that satisfies these requirements (and which has been upheld by the ACT Supreme Court). However if you use a different type of building or supply contract however, you need to be careful that any clause purporting to give a caveatable interest over land is actually effective to create a proprietary interest in the land. This may be something you need to seek legal advice about. CAN’T I JUST LODGE THE CAVEAT AND SEE WHAT HAPPENS? If you register a caveat without a caveatable interest, the owner of the land can bring a claim against you for any loss suffered as a result of the caveat. If a property transaction is blocked because of the caveat, this loss can be very substantial. HOW WILL A CAVEAT PROTECT MY INTEREST IN THE LAND? Many people think that if they lodge a caveat over land, this will somehow lead to the owner paying the amount due under the contract. A caveat gives you leverage, but it does not mean you will necessarily get paid quickly, or even at all. Your caveat could

sit there for many years before the owner needs it lifted because of an impending sale or refinance. Another common misconception is that once a caveat is lodged, the caveator can breathe easy. In reality, however, the owner of the land can easily apply to the Land Titles Office for a ‘lapsing notice’. Once you have been served with a lapsing notice, you will have 14 days to apply to the Supreme Court for an order to extend the caveat. That application can be costly. If you do not bother with getting an order, that will be the end of your caveat – and you are not allowed to lodge another one. As long as you have an enforceable caveatable interest in your contract, you should be successful in getting that order. However a court will not allow a caveat to sit against a property indefinitely when there is a dispute about the underlying debt. You will generally be required, as a condition of getting the extension order, to institute court proceedings to sue for the debt owed to you.Those court proceedings can also be costly. Further, the court will generally require the caveator to give an ‘undertaking as to damages’. This means if the caveator ultimately loses the court proceedings about the debt, the caveator will have to compensate the owner for any loss it suffered as a result of not being able to deal with the property. IF IT’S SO HARD,WHY BOTHER? Caveats are important as they inform third parties of your interest in the land. If you did not lodge a caveat and the owners of the property were to sell to a third party, your interest will be lost forever.

bank. In the event that the owner’s bank steps in to sell the land under a mortgage, any money left over after the bank satisfies its debt must be given to you to satisfy your claim before any remainder is paid to the owner. This means that (albeit in rare cases) the bank might well do your debt recovery for you. WHAT SHOULD I DO NEXT? You should obtain legal advice on your building or supply contracts to make sure your security is both appropriate and enforceable. Caveats are one of many options. Personal guarantees or charges over other assets might be better (or used as well), depending on the circumstances. Before you lodge a caveat you should always check whether you have a caveatable interest. A small amount of legal advice up front can save substantial costs later if you get it wrong. If you would like to know more about the possible legal avenues open to you to recover money owed to you, we are very happy to provide you with assistance. For more information or assistance, please contact: Alisa Taylor Partner - Construction Dispute Resolution Ph: (02) 6279 4388 alisa.taylor@mvlawyers.com.au Kate May Lawyer - Construction Dispute Resolution Ph: (02) 6279 4403 kate.may@mvlawyers.com.au

Also, if you have a legitimate debt and the owner cannot pay you, it is possible they are also defaulting on their obligations to the CANBERRA BUILDING NEWS I EDITION 2-2015

SEMINAR - RISK, LAW AND THE CONSTRUCTION PRACTITIONER “HOW RISKS ARE ADDRESSED IN LEGISLATION AND WHAT THIS MEANS FOR PRACTICING ENGINEERS” ENGINEERS AUSTRALIA - CANBERRA DIVISION & MASTER BUILDERS ACT This seminar provides appreciation and understanding of the risks and legal responsibility in design, documentation, inspection, certification and construction so essential for today’s practitioner in the building, construction and related industries. Date: Wednesday 24 June 2015 Time: Start 7.30am for 8.00 am. Formal sessions concluding at 1.00pm, followed by light lunch Venue: Master Builders Skills Centre, 1 Iron Knob Street, Fyshwick ACT Cost: Free

Mr Mark McCabe: “Experience with Risk Management in the new ACT Work Place Health and Safety Legislation” Mark McCabe was appointed is the ACT Work Safety Commissioner. He is a member of the ACT’s Work Safety Council and chairs the ACT’s Asbestos Regulators Forum. He is the ACT’s representative at Safe Work Australia. Mr Steven Gavagna: Goodman Law: “Legal Aspects facing practitioners in the construction industry” Steven Gavagna started his career in the building industry and received a degree in Construction (B.Build Hons, 1984) from the University of NSW. He worked for a number of multinational building corporations on large projects in Sydney prior to operating his own construction company. His background in construction and small to medium enterprises gives him a unique ability to understand his client’s goals, opportunities and problems.) Mr Conrad Barr AFSM: “Risk to Life and Safety due to Inadequate Fire services in Buildings”

THE PRESENTERS Dr Ed Lewis: “Application and Misapplication of Risk in Legislation and Practice” Ed Lewis from UNSW Canberra, Australian Defence Force Academy, is a recognized expert on risk management., including being chair of the Australian and international standards committee that produced ISO/IEC 38500: 2008 Corporate governance of information technology. Mr Craig Simmons: “Managing Safety Risks in Construction” Craig Simmons is the Director, Construction Services Branch of the Environment and Sustainable Development Directorate and has an extensive background in policy development and operational delivery with respect to regulatory environments.

CANBERRA BUILDING NEWS I EDITION 2-2015

Mr Barr is the Acting Chief Fire Officer for the ACT and has extensive experience with risks associated with fire fighting in domestic and commercial buildings. He has extensive knowledge in the area of alternative fire solutions and how they should be applied so that the outcomes are equal to the BCA deemed-to-satisfy solutions. Case Study The case study will focus on a hypothetical industrial building incident, developed from an actual event, in which three people died and seven people were injured as a result of a catastrophic fire. It examines involvement of stakeholders in the design, documentation inspections, certification and subsequent use of the building. Registration by Friday 19 June 2015 Enquiries: Lorraine Brook Ph: 02 6175 5920 or Email: lbrook@mba.org.au

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entives Apprentices of providing inc for Australian The objective opportunities oviding the g in in tra d an Authority is pr t Training Fund the employmen ry ove st ab du e In th n io truct st apprentice in ing and Cons ploy a 1 year em The ACT Build ho w s er oy ing for empl following fund .* 15 20 in prenticeship* s trade t date of the ap

men the commence p* months af ter e re th apprenticeshi 00 ,0 • $2 months of the 12 r an st de fir un e 15 th 20 of er st De ce mb completion st Ja nu ary – 31 • $2 ,0 00 on encing from 1 ntices, co first year appre * Applicable to ng. ini Tra of t ac ACT Contr

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WOOD BASED PANELS PARTICLEBOARD

Standards Australia have released for industry comment a proposed draft international standard on wood based panels - particleboard. The draft standard specifies a classification matrix and the related mandatory tests and thickness ranges to be applied to particleboard for general purposes, furniture, load-bearing applications, and heavy-duty load-bearing applications. It then provides the manufacturing property requirements for these types of uncoated particleboard. Copies of these materials are available from Master Builders upon request to interested member organisations.

FIRE ALARMS Standards Australia has released a draft revision to AS 1670.1 – 2004 ‘Fire detection, warning, control and intercom systems—System design, installation and commissioning Part 1: Fire’ for public comment. The main purpose of the revision is to: list all the current AS 7240 series equipment standards; restructure the document to address known issues and to improve clarity; introduce Alarm Delay Facility (ADF) software; reference AS 7240.23 for visual alarm devices; and, consolidate fire detection and control for smoke control and special hazard Standards. Copies of these materials are available from Master Builders upon request to interested member organisations.

NATIONAL BROADBAND NETWORK The Department of Communications is to host an online system to accurately map new property developments and record the identity of the telecoms carriers servicing them. The new mapping facility is part of the rollout of the National Broadband Network and is designed to help developers identify carriers servicing the area in which they intend to develop property, and assist carriers to better co-ordinate the provision of infrastructure and resolve dispute. It is also expected to help retail service providers and consumers check who can connect particular premises, and governments to verify that infrastructure has been contracted and provided. The data will become open source thus allowing other interested matters to map the data to meet their own needs.

CANBERRA BUILDING NEWS I EDITION 2-2015

EVEN BIGGER BANG FOR BUCK WITH YOUR CALTEX STARCARD Take advantage of our exclusive deal with Caltex. Master Builders’ members can now save 3.5¢/ltr off unleaded fuel and 4¢/ltr off diesel fuel with their Caltex StarCard. Further benefits include: •

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1B, 15 Sheppard Street Hume ACT | P 6260 1339 | F 6260 1423CANBERRA | E act_bcs@bigpond.net.au BUILDING NEWS I EDITION 2-2015 53

NATIONAL UPDATE AGE-FRIENDLY HOUSING IS A WIN-WIN FOR BUILDERS AND ELDERLY AUSTRALIANS

EXTENSION OF FWBC POWERS A WIN FOR THE COMMUNITY

Master Builders and the Australian Government Department of Social Services are calling for entries in the 2015 National Lifestyle Housing for Seniors Award which recognises excellence in building and the industry’s role in developing innovative housing options for older Australians.

“The vote by the Senate to extend the compulsory powers of Fair Work Building and Construction (FWBC) is a win for the community and common sense,” Wilhelm Harnisch CEO of Master Builders Australia said.

Wilhelm Harnisch CEO of Master Builders Australia said “According to the 2015 Intergenerational Report the number of Australians aged 65 and over is projected to more than double by 2055. It is vital that the specific housing needs of this growing sector of population are not overlooked. The National Lifestyle Housing Award acknowledges best practice in design and construction, and aims to foster a greater awareness of healthy ageing supported with the benefits of innovative and adaptable housing.” “The Australian Government Department of Social Services’ continuing support for the Award highlights the importance of creating age-friendly environments that help people to stay in their homes longer to maintain their independence” he said. The Award is divided into two categories: owneroccupied purpose built detached dwellings and multi-unit developments.The Awards are limited to Class 1 and 2 buildings and may include dwellings that are set within a complex that provides complementary facilities to support the lifestyle of the residents. The 2015 Australian Government Department of Social Services National Lifestyle Housing for Seniors Award will be presented at the Master Builders Australia National Excellence in Building and Construction Awards Dinner to be held on the Gold Coast in November. Master Builders invites builders to nominate their project for the 2015 National Lifestyle Housing for Seniors Award. Submissions close 21 August 2015.

A SNAPSHOT OF INDUSTRY NEWS FROM AROUND THE COUNTRY

CANBERRA BUILDING NEWS I EDITION 2-2015

“Master Builders would like to thank the cross bench senators for their support of this common-sense measure.The need to protect witnesses and whistleblowers from coercion and intimidation has been highlighted by the Royal Commission into union governance and corruption,” he said. “The passage of this legislation will ensure FWBC can continue to do its job while consideration is given to restoring the powers of the Australian Building and Construction Commission (ABCC),” Wilhelm Harnisch said. “The FWBC is already constrained by a number of provisions that hamper its work.” The continuance of the current ability to compel witnesses to give evidence does not make up for those deficiencies. For example, the FWBC is unable to commence or continue litigation where the litigation on the same subject matter has been discontinued because the building industry parties settled their differences,” he said.

JOHN POLLAERS TO HEAD AUSTRALIAN INDUSTRY AND SKILLS COMMITTEE Former Fosters and Pacific Brands CEO John Pollaers has been appointed chair of the federal government’s Australian Industry and Skills Committee designed to put employers in charge of choosing which vocational qualifications are funded by government training packages. Assistant Education and Training Minister Simon Birmingham said the new body would “put industry at the centre of the system”.

Mr Pollaers will head a 12-member body of industry representatives, including one nominated by each state and territory government, and a rotating member from the three main business groups, the Business Council of Australia, the Australian Chamber of Commerce and Industry and the Australian Industry Group. The new committee is part of the government’s new model for training package development which will end the role of the 12 industry skills councils funded by government and replace them with a contestable system. Mr Pollaers’ committee will sit above a new structure of industry reference groups - which will advise on the training qualification needs for each industry sector - backed by skills service organisations to provide administrative support. Unions, which are currently represented on industry skills councils, fear they will be frozen out of the new system. Mr Pollaers said he looked forward to “working closely with government, education, and industry leaders across all states and territories to ensure that Australian industry has access to a highly skilled and competitive workforce”. Senator Birmingham said the new committee would replace “a complex framework” of 14 different committees and advisory bodies and simplify governance of vocational education and training. On Friday Senator Birmingham, who was appointed last December, recently had his first formal meeting with state and territory skills ministers and he said he wanted to review the student entitlement model for funding vocational training that entitles young people to enrol in a government-funded course at either a private education provider or a TAFE.

“We want to pay people more for getting outcomes, for ensuring that completions occur. It’s central to a changed model ... it provides payments around completion, not just around sign-up,” he said. He said that contestability in the new apprenticeship system would ensure that funding for apprentices and trainees would be efficiently used.

LATEST APPROVALS POINT TO DETACHED HOUSING EMERGING FROM APARTMENT SHADOW “The rise in building approvals for March confirms the positive outlook for the housing market will continue amid signs of growth in detached houses which have flatlined for 12 months, lagging behind high rise apartments,” Peter Jones, Chief Economist of Master Builders Australia said. “Master Builders estimates that around 220,000 dwellings will be approved in this financial year, while a further cut in rates would add further stimulus to the new housing market, helping to boost housing supply taking pressure off both house prices and rents,” he said. “The 2.8 per cent seasonally adjusted rise includes an encouraging 1.1 per cent rise in detached houses and a bounce-back in multi-unit developments of 5.3 per cent rise in the month,” Peter Jones said. “The national picture shows marked differences state by state. In contrast to the monthly results, the eastern states including Tasmania continue to power ahead.The big bounce back in South Australia is not enough to offset the plunge in approvals for February and the trend remains negative with a similar story in the West,” Peter Jones said.

Speaking at the 2015 Skills Conference in Sydney, Senator Birmingham said he wanted to see a best practice model developed for delivering the entitlement model. “I think we need to step back and have a good hard look at how the finite dollars for training are directed,” he said. Senator Birmingham also said he was committed to improving the apprentice and traineeship system, which currently only graduates about half of its students. He said the government was shifting to an “outcomes driven approach” with its new Australian Apprenticeship Support Network. CANBERRA BUILDING NEWS I EDITION 2-2015

NATIONAL UPDATE CONSTRUCTION INDUSTRY AMENDMENT (PROTECTING WITNESSES) BILL 2015 On 11 May 2015 the Senate passed the Construction Industry Amendment (Protecting Witnesses) Bill 2015. The passage of the Bill that will extend the information gathering powers of the Fair Work Building and Construction agency (FWBC) is a triumph of common sense. All cross-bench Senators voted for the Bill. The industry needs witnesses to be protected, as the reluctance of people to speak to the current Royal Commission into trade union corruption and governance shows. With the change to the law, the Director of the FWBC is able to apply to a nominated Administrative Appeals Tribunal presidential member for an examination notice for a further two years from 31 May 2015 when this provision was due to sunset. It would have been beyond the pale to ask the FWBC to do its job without compulsory information gathering powers. A regulatorâ&#x20AC;&#x2122;s investigations should not founder because witnesses will not make a statement or victims simply give up.The FWBC is already constrained by a number of provisions that hamper its work. The continuance of the current ability to compel witnesses to give evidence does not make up for those deficiencies. For example, the FWBC is unable to commence or continue litigation where the litigation on the same subject matter has been discontinued because the building industry parties settled their differences. This means that deals can be done that protects unions and others from the consequences of their unlawful action. Only the restoration of the ABCC will provide an adequate response to the urgent need to apply the rule of law in the building and construction industry. Master Builders looks forward to continued debate about the return of the ABCC.

FWBC REQUIRED TO MAKE CHANGES ON AGREED PENALTIES PRACTICE A Full Federal Court decision made on 1 May 2015 means that the prior agreement of the FWBC with those it is taking to court about the pecuniary penalty the offender must pay will no longer be binding. The court must set the amount of the penalty:

CANBERRA BUILDING NEWS I EDITION 2-2015

A SNAPSHOT OF INDUSTRY NEWS FROM AROUND THE COUNTRY

Director, Fair Work Building Industry Inspectorate v CFMEU [2015] FCAFC 59 http://www.austlii.edu.au/ au/cases/cth/FCAFC/2015/59.html In essence, a court can no longer receive or act upon an agreement as to penalties or on submissions by a regulator as to the appropriate amount or range of penalties. A common practice has developed in civil proceedings where the FWBC and other regulators have made submissions to the court, jointly or with another party, about the amount of the appropriate pecuniary penalty or, often, the range of an appropriate penalty.The Full Federal Court has now decided that this is not permitted. This will slow down court processes which are already unduly slow.

NEW AWARD FOR TRAFFIC MANAGEMENT â&#x20AC;&#x201C; SLOW PROGRESS In August 2014 the Traffic Management Association of Australia (TMAA) made an application for a new modern award on an industry and occupation basis. This application being dealt with by the Fair Work Commission as part of the 4 yearly review of modern awards in AM2014/195.The TMAA filed a draft award on 22 December 2014 and a mention was held on 22 January 2015 before Senior Deputy President Watson to determine the programming of these proceedings. Following the conference directions were issued and subsequently a number of parties filed submissions opposing the making of such an award, with Master Builders raising a number of reservations about how the Award has been structured and why it is necessary. In accordance with Commission directions the TMAA then filed further submissions providing its justification for the making of the draft award.The Commission has directed interested parties to meet and confer in relation to this application. That conciliation has not yet been held. For no reason that is discernible, the Commission President Justice Ross has taken over the management of this matter and will likely seek to accelerate its progress.

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Thursday 5 March Sponsored by Balmain Commerical

Tuesday 21 April Sponsored by Austbrokers Canberra Canberra

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Tuesday 31 March Sponsored by Boral Meyer Vanderberg Lawyers

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Thursday 21 May Sponsored by Shaw Building Group

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The Master Builders Fidelity Fund was established in 2002 to protect the interests of both consumers and builders in the ACT. For Builders, the Master Builders Fidelity Fund provides financial certainty as money held by the Fund remains in the ACT. It is securely invested and used for the betterment of the ACT builders and consumers and is therefore not subjected to the vagaries of international markets and events. The Fidelity Fund issues Fidelity Certificates which provide consumer protection for owners of new homes and those making significant changes to homes. The Certificates protect the owner during construction and for up to six years from the date of practical completion. Master Builders members receive reduced premium rates and we also offer special discounts for volume users of the Fidelity Fund. For more information contact the Master Builders Fidelity Fund.

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Master Builders Fidelity Fund 1 Iron Knob St, Fyshwick ACT 2609 | PO Box 1211, Fyshwick ACT 2609 Tel: (02) 6175 5995 Fax: (02) 6257 8349 Email: mbff@mba.org.au Web: www.mba.org.au

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BUILDING AUSTRALIA Master Builders National Conference Jupiters, Gold Coast,12-14 November 2015

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The Master Builders biennial National Conference is heading to the Gold Coast in November, for what will undoubtedly be the industry event of the year once again. The Conference focuses on leadership and assisting members to make informed decisions in continuing to grow their business whilst developing and maintaining strong leadership attributes within their business ethos. With high profile speakers that will examine the building industry outlook and topics relevant to todayâ&#x20AC;&#x2122;s building and construction industry. The conference program and registration including partners and social program will launch in mid-May along with a Super Early Bird end of financial year special registration price. Super Early Bird $770, 20 May to 30 June, Save $300 on the Standard rate by registering super early! www.masterbuilders.com.au/Events/national-conference

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CANBERRA BUILDING NEWS I EDITION 2-2015