Canberra Building News 1-2012 by Master Builders Association of the ACT

EDITION 1-2012

DV306

(AUST)

LOCAL BUILDER LENDS A HAND FOR CHARITY CLASSIC CONSTRUCTIONS ARE BUILDING THE FRANKLIN CHARITY HOUSE

ABCC

FEDERAL GOVT. TO ABOLISH, THE COALITION VOWS TO RESTORE

NSW DEVELOPERS NEW FRIEND INPUT COSTS VS REMEDIAL COSTS QUALITY IN CONSTRUCTION CAN’T BE LEFT TO CHANCE

ANOTHER SUCCESSFUL CHARITY GOLF DAY OVER $12,000 WAS RAISED FOR THE ACT ASSOCIATION FOR ADVANCING DISABLED SPORT & RECREATION

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President – Ross Barrett Treasurer – Simon Butt Commercial Builders Council Chair – Valdis Luks Civil Contractors Council Chair – Andy Crompton

Input Costs V Remedial Costs

Kingston Foreshore New appeal rules for Kingston developments.

It’s much cheaper getting it right the first time.

Residential Builders Council Chair – Frank Porreca Professional Consultants Council Chair – Hans Sommer Suppliers & Subcontractors Council Chair – Graciete Ferreira MASTER BUILDERS MANAGEMENT TEAM Executive Director – John Miller

CANBERRA BUILDING NEWS EDITION 1 - 2012

MASTER BUILDERS EXECUTIVE COUNCIL

Deputy Executive Director – Jerry Howard Director Industrial Relations – Mike Baldwin Senior Management Accountant – Louise MacCallum

Productivity Commission examines default super funds

Should more funds be recognised as default funds?

Time you thought about Gas?

28 Franklin Charity House

ActewAGL and the ACT Government is offering incentives to replace wood heaters.

12 ABCC Coalition promises its restoration Tony Abbott says the ABCC will be restored at the first available opportunity.

20 Vale – David Andrew

Alan Foskett pays tribute to David Andrew, former MBA-ACT Executive Director.

ACIF Forecast New extended forecast format released in April 2012.

A true example of the ACT building and construction industry coming together to support the local community.

17 Gungahlin Office Block shortlist

The ACT Government selects five local developers for a project to house 500 public servants.

Senior Manager – Marketing & Membership Services – David Leitch MASTER BUILDERS GROUP TRAINING General Manager – Wendy Tengstrom

Master Builders Association of the ACT 1 Iron Knob St, Fyshwick ACT 2609 PO Box 1211, Fyshwick ACT 2601 Tel: (02) 6247 2099 Fax: (02) 6249 8374 Email: canberra@mba.org.au Web: www.mba.org.au Advertising enquires Senior Manager - Marketing & Membership Services – David Leitch Tel: (02) 6175 5970 Mob: 0437 379 391 Email: dleitch@mba.org.au

24 Googong sales launch Strong interest for the first land sales in the Googong Township.

Master Builders Industry Dinner, incorporating the CCF Earth Awards

Master Builders Excellence in Building Awards

Date: Thursday 9 May 2012

Date: Friday 29 June 2012

The Earth Awards have the specific aim of recognising outstanding work in construction and environmental excellence which reflects development and use of the best technologies and practices by Australian civil contractors.

The Master Builders Excellence in Building Awards are largely regarded as the premier awards and networking event for the building and construction industry throughout Canberra and the surrounding region.

Judging Period for the Awards Civil entries 2 - 3 April

All others entries 16 April - 11 May

Main Cover Image: Photo composition of the Franklin Charity House 5

President's Message

President of Master Builders Association of the ACT, Ross Barrett

As Canberrans we are very fortunate to live in the best city in the best country in the world. Our local economy is going ok, our streets are relatively safe and our health and education systems are the envy of others. We are indeed privileged. But it is time for us to be cautious. Our local industry is heading for more difficult times. This will not only affect our members directly but its effects will quickly flow through to the detriment of our local economy. It doesn’t help that finance is becoming more difficult to obtain and it is costing relatively more.

will not be let in an evenly controlled manner, instead will released in batches. This is not good for maintaining a stable workforce and it is not good for maximising the use of skilled employees. Rather, it encourages hiring and firing to suit a non continuous need. As I said, it is time to be cautious. You would think that in this environment we would all be pulling in the same direction to ensure a sustainable future for our local construction companies, continuous employment for our employees and ultimately for the

budget difficulties. I can remember when I was in Germany several years ago and the Mercedes Benz workers agreed to work an extra hour a week without additional pay to encourage Mercedes to retain more jobs within Germany. I’m sure those workers were not happy with these outcomes but thought their sacrifice was better than the alternatives. I understand why working conditions should improve when there is economic growth, increased productivity or increased profits. Can anyone explain how large increases at this time will help our local industry or our economy?

The reality is that bargaining in this sector remains strongly adversarial and is not sufficiently focused on productivity. The recent extended period of rain has also depleted the cash reserves of many of our members which leaves them in an even poorer condition to handle any future problems. Our residential builders who hold land stocks are seeing its value decrease, the cost of house construction is increasing and the sale price of land/house package is falling. On top of this, the market is “soft”.

benefit of our community. In difficult times it is always prudent to cut costs. Unfortunately this is not happening. The CFMEU believes this is the right time to reduce the working week from 38 to 36 hours while increasing wages by 5% each year for the next four years and adding additional burdensome employment conditions. And of course there is not even discussion around productivity gains.

Our commercial builders and project managers become more concerned with each passing day as they contemplate when their next project may eventuate. The collapse of Kell & Rigby after 100 years sent a chill up the spine of even the most optimistic.

To quote ABCC Commissioner Leigh Johns: “The reality is that bargaining in this sector remains strongly adversarial and is not sufficiently focused on productivity. Furthermore, Agreements are little more than wage deals, rather than shining examples of enterprise bargaining.”

The civil sector is about to see the Majura Parkway, which is a large portion of the construction infrastructure budget go to an out of town contractor. If history is any guide, the remaining works

This attitude contrasts markedly with what I have observed as I have traveled overseas. I am just back from Hawaii where the teachers have taken a 5% pay cut to help with the state’s horrendous

I also remember when I was in China a few years ago (yes, I do have a lot of holidays) and read in an English edition newspaper an interview with a Chinese “union official”. He was asked to compare his job with that of a western union official. He believed his western equivalents barged into the boss’s office, thumped the table and got their way. However, he explained he needed an appointment with the boss, entered the room in a semi crouched stance and had some polite conversation. There is a lot of talk about the Chinese workers currently in the ACT and there is discussion on the pros and cons of that situation. So far I haven’t heard about any Chinese “union officials” being in town. If there are, I hope they find their way to Dickson for some dialogue with the CFMEU. Maybe they could mollify their thinking just a little.

CANBERRA BUILDING NEWS EDITION 1 - 2012

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Executive Director's Message

Executive Director of Master Builders Association of the ACT, John Miller

Ideology versus practicality – and the winner is…? If the ACT Government is concerned that the hand being played by the Commonwealth and others is affecting its current land release program, this might be nothing compared to the hand being played by industry and consumers over the much maligned Draft Variation 306 (DV306). The reality is that residential developments across the border (and some inside) are being handed a massive

impossibility in achieving this solar dream. The significant cost increases are coming from the bitter experiences in trying to achieve common sense design and siting outcomes, and sensible utilization of their expensive piece of real estate. The pain of politics is going to rain down in greater torrents than witnessed by the soul-destroying deluges experienced across the country in recent months. It is almost certain that the Government approach and response to solar access would be far different to that

is transferring much needed revenue this community needs to function properly straight into the coffers of the NSW Treasury. This is a clear case of a bad read of the tea leaves - no, a disastrous read of the tea leaves. Those who took these options to the table need to be questioned about how much advice they heeded and from who given the results. This isn’t about so-called greedy developers looking to fill their pockets at the expense of consumers. It’s also

residential developments across the border (and some inside) are being handed a massive free kick because of DV306. free kick because of DV306. The stories of hand back of land in Molonglo should be sending massive alarm bells to the ACT Government. Conversely, soonto-commence Googong’s joint venture partners must be licking their lips and who could blame them for upping the ante on their marketing activity. Since the introduction of Draft Variations 301 and 303, the forerunners to DV 306, there has been a continual round of consultation and discussion. Much of this centred on solar access provisions demanded by The Greens in response to their Parliamentary Agreement with the Government. As things have moved on it has become increasingly obvious to many, firstly industry who understood this approaching tsunami, and since then consumers who have been faced with an onslaught of cost and near regulatory 8

of The Greens. The truth is that the Government has had to compromise and The Greens haven’t. This will be causing the Government more pain than it will for The Greens. It is already obvious that Interim Effect given to parts DV 306 is impacting on land sales. There will be some who say publicly that’s incorrect but privately the conversations are different. There is deep concern inside and outside of the Government and the bureaucracy on what has been unleashed on industry and consumers. The so-called intelligentsia within some parts of the community who were of the absolute belief they knew better than anyone else can stand on the sideline and count the cost for years to come, and it will be to the detriment of their own families. And if by any strange way that they may wish to claim victory over growth, all they have succeeded in doing

not about denying reasonable amenity in delivering residential housing. This is about an industry concerned at the incredible costs that will have to be incurred by those consumers, many trying to make their first housing purchases, under a system that is almost unworkable particularly if we wish to continue delivering block sizes and orientations that simply cannot cope with the parameters being set. The difficulty facing the authorities and those responsible for the financial well-being of the Territory is how this can be managed to minimize the damage? It would seem that the best outcome is to bite hard on the stick, make the necessary changes and wear the short term pain. The longer term results, if we continue to head down this path will be too much for anyone to bear. The reality is that ideology doesn’t pay the bills.

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Industrial Relations Message

Director Industrial Relations, Master Builders Association of the ACT, Mike Baldwin

The Personal Properties Securities Act – a run down The Personal Properties Securities Act (2009) (Cth) (‘PPSA’) came into force on 30 January 2012. Based on similar regimes in Canada and New Zealand, the PPSA establishes a single national system governing rights to personal property upon insolvency. Replacing some 70-odd State and Territory-based laws (along with a good deal of common law) the PPSA has radically altered the way disputes over personal property (other than land and fixtures) are resolved.

is encumbered. However, as the PPS Register has been deluged with numerous registrations on a ‘register first, ask questions later’ basis, it has impeded rather than liberated owners’ capacity to raise finance against their personal property. Security interests covered by the PPSA It is vital that members consider whether they have security interests which need to be registered under the PPS Register. It is not always obvious whether a security interest exists, but the PPSA takes a ‘substance over form’ approach when considering whether a security interest has been created. The key

if registered later-in-time. Suppliers can no longer rely on their contractual rights under retention-of-title clauses, but must register their security interest (indicating that it is a PMSI) to secure their priority claim. Purchasers of building materials should also consider covering their unfixed materials with a retention-of-title arrangement, which (once registered) will secure their interest in the materials against a default of the principal. However, because the PPSA does not apply to fixtures, any registration (by a supplier or a purchaser) will be ineffective where materials become

Crucially, actual legal title will no longer determine who has priority rights to personal property upon insolvency. Crucially, actual legal title will no longer determine who has priority rights to personal property upon insolvency. Construction industry participants must consider how to protect their interests in personal property under the PPSA, as it is a system which above all rewards the proactive party. In particular, the PPSA has important implications for suppliers, leasing companies and owners of plant, equipment and temporary works. The PPS Register The centerpiece of the PPSA is the Personal Properties Securities Register (‘PPS Register’) on which security interests in personal property can be registered. Generally, those registered first-in-time will take priority over those registered later-in-time (or not at all). The PPS Register acts as an online ‘notice board’, enabling users (for a fee) to see whether personal property 10

question to ask is whether a right over personal property has been granted in order to secure some kind of obligation, such as payment. For example, under most construction contracts, a principal has the right to take possession of a subcontractor’s plant and equipment upon the default of the contractor, either to complete the works or compensate the principal (e.g. clause 39.6 of AS4000-1997). This would be a security interest covered by the PPSA and the principal would need to register it on the PPS Register to secure its rights. Some transactions are deemed to give rise to registrable security interests, such as supply of building materials subject to a ‘retention-of-title until payment’ clause. Under the PPSA, retention-of-title is a special kind of security interest (known as a ‘Purchase Money Security Interest’ or ‘PMSI’) which enjoys a ‘super-priority’ status over other security interests, even

‘affixed’ to the land or building. A security interest might also arise where a subcontractor’s plant, equipment or temporary works are leased or bailed (i.e. left on a construction site in the possession of the principal). However, this will only be the case where the lease or bailment is: •

long term (90 days or more for plant; 1 year or more for equipment and temporary works); and

•

the owner can be said to be ‘regularly engaged in the business’ of leasing and bailing; and

•

the principal has paid for the bailed property.

It remains uncertain whether subcontractor’s plant, equipment or temporary which is left on-site in possession of the principal will give rise to a PPS lease. However, in the absence of any Australian court ruling on this

issue, it would be prudent for owners of plant, equipment or temporary works to register an interest (indicating that it is a PMSI) on the PPS Register, in order to secure their ownership. Security agreements For a security interest to be enforceable, it must also be described in a written agreement, known as a ‘security agreement’. This will usually be the contract covering the works, but may be included in a separate agreement. The security agreement must describe the personal property to which the security interest relates, at least by reference to its class (e.g. an excavator could be described as ‘plant’). Using the PPS Register Registrations are able to be made prior to a security interest arising, which means that registration should as soon as it appears that a deal giving rise to the security interest is likely to proceed. Registration of interests in supplied or leased/ bailed goods must also occur before materials or equipment arrive on-site. A registration may deal with multiple security interests, which will be useful where multiple deliveries or leases are expected. Also ensure that a registration does not lapse (they are generally for 7 years) as the registration time for a security interest is calculated from the point at which it had unbroken registration. Further information on the PPS Register, is available at www. ppsr.gov.au/pages/ppsr.aspx * contributions to this editorial were provided by John Nikolic, Senior Advisor to Director IR.

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Building and Construction Commission set to be abolished – Coalition promises its restoration Legislation abolishing the Australian Building and Construction Commission seems likely to become law despite Coalition Senators issuing a scathing report condemning its abolition. The Coalition has vowed it will reinstate the ABCC if it is re-elected. The Master Builders has strongly and repeatedly opposed the ABCC abolition. The Building and Construction Industry Improvement Amendment (Transition to Fair Work) Bill abolishes the ABCC and creates a new Office of the Fair Work Building Industry Inspectorate within Fair Work Australia, to regulate the building and construction industry. It removes the existing building industry specific laws that provide higher penalties for building industry participants for breaches of industrial law, and broader circumstances under which industrial action attracts penalties. The legislation passed the House of Representatives in mid-February by one vote (71 to 70) with the Government supported by independents Andrew Wilkie and Bob Katter and Greens Adam Bandt. It is likely to pass the Senate when a vote is taken, with the Government supported by the Greens who hold the balance of power and have pushed for the legislation to go further.

Senate Education, Employment and Workplace Relations Committee examined the bill, Coalition Senators said, “Coalition Senators completely reject the government’s claim that the Building and Construction Industry Improvement Bill (Transition to Fair Work Bill) 2011 delivers ‘a tough cop on the beat’ in the construction sector.” They said that when the “Bill was first presented to the Parliament in 2009 (the Coalition was) fearful that this Bill would turn the Australian Building and Construction Commission into a toothless tiger. Along with Labor’s last minute amendments, it is now clear that this Bill will ensure that it will now be a toothless mouse suffocating in red tape.” They said, “When considering who will benefit from the abolition of the Australian Building and Construction Commission, it is glaringly obvious to Coalition senators that it is the Australian Labor Party and the Australian Greens who stand to gain, while the national interest gets put to a side. There are genuine concerns that this Bill is simply an effort to appease the union bosses and guarantee electoral funding.” The Coalition senators “recommend that this Bill should be opposed at every step. Should it succeed, the Australian Building and Construction Commission should be urgently restored as soon as possible.”

Opposition Leader, Tony Abbot

Coalition Leader Tony Abbott said, “The work of the ABCC is as important today as when it was established in 2005. “

The Coalition will restore the ABCC at the first available opportunity. Australia cannot afford to return to the bad old days of lawlessness in the construction sector.

In their dissenting report after the 12

The Labor and Greens majority of the committee said they, “remain(ed) opposed to industry specific legislation as a matter of broad principle. The goal should be the coverage of all workers in the building and construction sector by the provisions of the Fair Work Act. The committee hopes that the

review that is triggered by the sunset clauses in this bill, will result in further legislative changes to achieve this goal.” Master Builders Australia strongly criticised last-minute Government amendments inserted in the legislation before it was passed by the House of Representatives and said these changes should be properly examined by a parliamentary committee. Master Builders CEO Wilhelm Harnisch said, “The significant nature of the last minute amendments adopted by the House on 22 February 2012 demands that there be a proper review of the intent and the likely disastrous consequences for the new Building Industry Inspectorate to enforce unlawful actions on commercial building sites.” He said, “The amendments mean that if industrial parties to a dispute reach a settlement that ends the dispute then the regulator cannot institute separate legal proceedings, even where conduct clearly breached the law. “In the building and construction industry the everyday reality is that industrial disputes involve parties that have on-going and damaging consequences beyond the project or the dispute. This is the very reason an independent regulator is needed to ensure compliance with the rule of law. “ Mr Harnisch said, “Those in the building industry know that these amendments will see a return of intimidation and thuggery on building sites. The surprise amendments were introduced without consultation and passed in the House of Representatives without proper debate and scrutiny.”

RENEWABLE ENERGY BONUS SCHEME SOLAR HOT WATER REBATE

The Australian Greens have slammed the federal government’s early axing of the solar hot water rebate scheme, saying sun power is the nation’s future. The Government announced on 28 February 2012 that it was shutting its rebate scheme early. The scheme, which offered householders rebates of $1000 for installing solar hot water systems and $600 for installing heat pump systems, was due to end in June. Since the introduction of rebates for climate friendly hot water systems in 2007, the Government has funded over 250,000 rebates in excess of $320 million. In line with the announcement on 28 February 2012, to be eligible for the REBS Solar Hot Water rebate, the system must have been installed, purchased or ordered (and a deposit paid) up to 28 February 2012.

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CANBERRA BUILDING NEWS EDITION 1 - 2012

TAP TURNED OFF

The Government is continuing to support households to install climate-friendly hot water systems through the Small-scale Renewable Energy Scheme. Under this scheme, solar and heat pump hot water systems are assigned a number of Small-scale Technology Certificates (STCs) and retailers can offer an upfront discount on systems in exchange for the STCs.

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Quality Service

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INPUT COSTS VS REMEDIAL COSTS. IT’S A

NO BRAINER by Jerry Howard, Deputy Executive Director

Quality in construction is too important to be left to chance. Architects must educate owners and developers to insist on quality design documentation, comprehensive inspection and a competent testing program. Good quality control starts with a good design, followed by good detailed documentation and a good site implementation plan. With remedial costs in some developments running in excess of 5% of the total project cost, maybe it is time for us to take a serious look at the importance of good design followed by good supervision. A look at history gives some insight into the problem. Until the end of the 19th century building projects were delivered by master builders, who combined architecture and building. As architects separated from the hands-on delivery of buildings, construction methods changed. Previously engineers and architects were in total control during the design phase and during construction they carried out a role described as “supervision”, ensuring that the owner received their money’s worth in terms of quality. As the role of the master builder narrowed to that of a manager, construction was taken over by the general contractor who had to be concerned with the realities of maintaining a viable business and had to spread out their management, seek new work and manage effectively to maintain profitability. The competitive tender became more popular. This gave the owners, or the procurers of the project, the advantage of competitive pricing. It also forced the general contractor to look for every advantage during construction to control the cost and to maintain a profitable business. As mechanical and electrical systems became more complex, the general contractor turned responsibility for such work over to subcontractors, including quality control of their workmanship. In some speciality areas, these subcontractors became nominated specialist subcontractors. When the general contractor was essentially in complete control of the project, quality control was an inherent duty. Today, even with the best organised and most credible contractors, sub-letting out almost the entire project - who is in charge of quality control? Through contract, subcontract and subcontract, the general contractor has delegated responsibility for quality. At best the situation is confusing. At worst it has become the subject of litigation. At the extreme it becomes the basis for building failures and excessive remedial costs, which has to be borne by somebody. In the case of a developer-owned project, you have probably got 14

National Construction Codes (NCC). Key documents in the design process.

what you paid for, however, in the case of a building for a client, it is quite likely that the client may not have got what they paid for and may have to expend large amounts of money in remedial works, post the expiry of the defects liability period. Inspection and proper supervision onsite is a vital part of quality control. It is not a substantial cost when you attribute it to the total value of the project. The traditional “clerk of works” approach provides just what is paid for. Those owners willing to pay for additional field coverage by the design professionals usually get an effective quality control service. One way in which more attention will be given to quality control, is development of a Project Quality Control Plan. Presently, testing and inspection requirements are scattered throughout contract specifications. To develop a firm plan, the testing and inspection requirements can be combined into a new division of specifications. This would emphasise quality control and provide an organised location in which all quality control requirements are identified to those tendering for the project. Quality is achieved by individuals performing work functions carefully and in accordance with the abovementioned specifications. Quality control on construction sites only occurs during the construction phase (while it is the most visible portion of the project), there is no point in inspecting the finished tiling to an exposed balcony if your objective was to check to ensure that the waterproofing was correctly undertaken, including evidence of the specified products being used. More emphasis on design and quality documentation: The pre-design portion of the project is a poorly defined intangible and time-consuming phase, during which the owner/developer and his team of consultants should be very busy with a number of important roles. Typically, these duties are accomplished by omission or default, rather than rigorously managed. Unfortunately, it is at this stage that the seeds of many project problems are planted with cost plans being reviewed and chopped and changed at the expense of good quality designs. Once the design team has been selected, it should play a significant role in developing the scope of services to be performed. An owner/developer, particularly an inexperienced owner/developer,

While it is a truism that additional dollars spent to ensure quality during the design will reduce the costs of quality control measures during and after construction. The design professionals should make this clear to the owner/developer early, rather than later.

CANBERRA BUILDING NEWS EDITION 1 2 - 2012 2011

threatens quality outcomes when they attempt to get more than bargained for. It is important that the design professionals identify for the owner/developer those certain tasks which are necessary to assure a quality outcome and to insist that these be included in the project’s design phase/costs.

Owners/developers, particularly the inexperienced ones, expect quality in the completed project, but are unaware of the effort required to deliver quality, both in the design phase and the following construction. The design professionals must be aware of the probability of loss of quality in accelerated projects. All too often the design professional hopes for the best and accepts these impositions upon the design team’s ability to perform and incorporate quality. It is the design professional’s responsibility to point out the probable implications of such actions. Funding limitations can exert a negative influence on quality in the project. If the emphasis is upon providing program at cost, then any limitations of the cost tends to squeeze qualityrelated activities. Another dimension should be pointed out to the owner/developer; design fees are approximately 1% of the ultimate lifecycle cost of a project and yet design is the most important influence on the lifecycle costs. Saving money at the expense of design can have a 100:1 negative impact on the ultimate lifecycle costs of the project. If these realities can be brought out to the owner/developer, they can cooperate with the design professionals to agree upon the role of quality in the design phase. Quality outcomes in construction are usually associated with detailed working drawings, detailed specifications, followed by a detailed review of the drawings for any buildability issues that may arise during the construction phase. Remember, the following six major identified defects, during and after the construction phase, have their genesis in the preconstruction phase: •

Exposed balcony/podium waterproofing issues, including inadequate falls to drainage outlets

•

Incorrect design at balcony interface/conflict between architectural engineer and engineering drawings

•

Roofing issues, including inadequate performance of gutters and flashing

•

External facade cladding/rendering failures

•

Water ingress through the building fabric due to unsatisfactory detailing

•

Passive fire protection – inadequate installation with no precise detailing 15

New appeal rules for Kingston developments

The ACT Legislative Assembly has passed a regulation exempting the proposed Quayside development at Kingston Foreshore from third party appeals.

However the regulation will allow third party appeals in relation to future developments in the Kingston Arts precinct.

The Legislative Assembly has defeated a Greens move to disallow a planning regulation made by Environment and Sustainable Development Minister Simon Corbell last October. The regulation made last year removed the possibility of third party applications to the ACT Civil and Administrative Tribunal for merit review of development applications granted in the Kingston Foreshore area including the Arts precinct.

As a result there will be no third-party challenges to any developments already approved for the Foreshores, including the Quayside proposal.

However the Government agreed to a Liberals amendment which would restore third party appeal rights to any future development in the Arts precinct (although not apparently in the Foreshore area). Mr Corbell welcomed what he described as a “a compromise decision in the Legislative Assembly that will still see the majority of development in the Kingston Foreshore area exempt from any third party merit review.”

He said, “This is a sensible compromise to allow development to proceed while allowing administrative review of decisions about development within the Arts precinct. The Government was pleased to support this compromise on that basis.” Mr Corbell said it was essential to maintain certainty for major developments in the Kingston Foreshore precinct. Liberal MLA Vicki Dunne said, “A motion of the Greens to disallow the regulation in full might have failed, thus locking the community out of the arts precinct, but for an amendment that I proposed, simply to exclude the arts precinct from the regulation. “The government supported my amendment, showing once again that this government is a follower and not a leader in our community. “The Greens did not support the amendment, showing not only their selfish pride over their motion, but their hypocrisy over the whole Kingston arts precinct issue. “In the end, the preservation of appeals for the Kingston arts precinct is a good win for the community, because it preserves the right of the community to have a say as to the way the assets it owns should be used,” Ms Dunne said. The Greens said the change allowing third party appeals in the arts precinct was better than nothing. Greens Planning spokesperson, Caroline Le Couteur said, “Sadly, the Liberal and Labor parties while removing the arts precinct from the regulation, would not support the principle that all residents should have the right to appeal. It is a positive step that local residents will now have appeal rights for the arts precinct.

The ACT Government has shortlisted five local developers for the proposed Gungahlin Government Office Building.

Deputy

Chief Minister and Minister for Economic Development Andrew Barr announced that KDN Group, Capital Property Group, Amalgamated Property Group, Doma Australia Holdings Pty Ltd and Landco Pty Ltd had been shortlisted for the project. Mr Barr said that earlier in the year he and Chief Minister Katy Gallagher had announced the Government had received nine registrations of interest from the development sector to build offices – either on the ACT Government’s land or the developers’ own land in Gungahlin.

Instead it said it would seek proposals from the private sector for the construction and financing of an alternative project. At the time Mr Barr said the Government had determined it would market test the delivery of new office accommodation in Gungahlin and Civic. He said, “The Government’s immediate priority is the delivery of the Gungahlin office project.”

CANBERRA BUILDING NEWS EDITION 1 - 2012

ACT Government Gungahlin Office Block shortlist

“The method used to procure office accommodation in Gungahlin is one the Government would duplicate for its future office accommodation needs in the city,” he said. “Following the success of the Gungahlin process, we will work with the property sector to secure new or renewed office space in Civic for about 3,000 ACT Government employees,” Mr Barr said. The private development sector, including the Property Council had strongly opposed the Government’s plan for its own Civic building since it was announced in the 2010 ACT Budget.

The five shortlisted proponents were selected from the nine submissions that were received. Mr Barr said the Gungahlin office will house about 500 ACT Government Shared Services staff in a purpose-built complex and is the ACT Government’s highest priority for office accommodation projects. “I am delighted that all of the shortlisted companies are Canberra based and their keenness to be involved is further proof of the strength of our local economy.” He said “construction of the new office block in Gungahlin will also be a great boost to the retail businesses in the Gungahlin Town Centre. It will bring 500 new customers to their doorstep and give many ACT Government employees the opportunity to work much closer to home.”

Mr Barr and Chief Minister Katy Gallagher, announced the Government would go to the private sector for alternative proposals for Government office space. This sweetened the announcement of the abandonment of the original plan to develop a central, purpose built office complex in Civic. The Government has not announced a new time frame for the Civic project. Mr Barr said the Government will invite the property sector to submit proposals that meet the accommodation needs identified through the project work to date. “This could include adaptive re-use of buildings, campus-style accommodation, and construction of a new building or combinations of the above. The accommodation will be required to be at the same standard as the Commonwealth Government mandates for its employees.”

The shortlisting follows the earlier announcement by the Government that it was scrapping its controversial plans to build, own and operate its own $400 million Government Office Building in Civic.

New business names registration system from May A new national system of business names registration will begin in May 2012. The new system changes arrangements for business name registration in the ACT.

The new arrangements will replace the current state and territory registers. The new system is scheduled to commence on 28 May 2012, although this date may be affected by the passage of legislation through the State parliaments.

The ACT Legislative Assembly passed the necessary legislation in mid-February for the new national system to operate in the Territory.

under the Business Names Registration (Transition to Commonwealth) Act 2011 Canberra business owners will now only need to register their name once under an electronic national scheme. ACT Attorney General, Simon Corbell

â&#x20AC;&#x153;Previously if a business operated in both the ACT and NSW it had to register in both states, however under this new bill, businesses will only need to register once as part of a national scheme, allowing them to trade in any jurisdiction. â&#x20AC;&#x153;This bill will see reduced compliance costs for businesses owners, fewer restrictions on competition, and ensure consistency across the nation for business name requirements.â&#x20AC;? The new national system will be operated by the Australian Securities and Investments Commission (ASIC).

Under the new system businesses will only need to register for a business name once, instead of having to register the name in each state and territory in which the business operates. Once the name is registered, it is registered nationally. To register businesses will need to have an Australian Business Number (ABN), or be in the process of applying for one and not have been refused. ABN registrations will continue to be free. Existing businesses do not need to do anything to transfer existing business names to ASIC when the new national business name system is launched. Existing business name registration will automatically be transferred. Registration of businesses with identical business names registered in multiple states and territories will be transferred over into the new system as a single registration. Under the new system businesses will pay one renewal fee for the name to be registered nationally, instead of paying for each state and territory. Businesses with multiple different business names and registered companies will be able to align the renewal dates for those registrations. ASIC will continue to manage and administer company registrations throughout Australia. To register or renew a business name it will cost $30 for one year, or $70 for three years.

The Productivity Commission has signalled it will consider whether the present rules for selecting default superannuation funds in modern awards should be thrown open, potentially allowing more superannuation funds to be recognised as default funds.

Such an opening up – if it was to occur – could potentially challenge the tight hold that industry funds including Cbus in the building industry have over default arrangements.

The Productivity Commission will advise the Government by September on the proposed changes and the Government will then decide whether to proceed with them. At present industry public offer funds account for 47 per cent of all funds recognised by modern awards and industry non-public offer funds account for 24 per cent while commercial retail funds account for only 14 per cent of recognised funds.

Services and Superannuation, Bill Shorten and the then Assistant Treasurer, Senator Mark Arbib. They said, “The purpose of the inquiry is to design transparent and objective criteria for the selection and ongoing assessment of superannuation funds eligible for nomination as default funds in modern awards.”

CANBERRA BUILDING NEWS EDITION 1 - 2012

Productivity Commission examining default superannuation funds

Shadow Assistant Treasurer Mathias Cormann welcomed the inquiry which he said the Government had reluctantly undertaken. “The Government should also amend its My Super legislation currently before the Parliament to allow any eligible My Super product to compete freely in the default superannuation market,” he said.

The Government should also amend its My Super legislation currently before the Parliament to allow any eligible My Super product to compete freely in the default superannuation market. Shadow Assistant Treasurer, Mathias Cormann

The Productivity Commission inquiry is seen as a major opportunity by the commercial superannuation industry to increase their share of the superannuation market, and has been strongly supported by the Coalition. The PC review honours a commitment made by the Government in 2010. The Government has asked the Commission to advise on improvements to the system used by Fair Work Australia to select default funds for ‘Modern Awards’. However selection will remain part of the industrial relations system. The Financial Services Council, representing the commercial funds welcomed the PC outline of its approach to deciding on default funds and said that any fund should be chosen as a default option as long as it met the new ‘MySuper’ standards currently before parliament. But the rival Industry Super Network representing the industry funds said additional criteria should be required, including the historic performance of a fund. ISN pointed to recent figures from the prudential regulator APRA showing that industry super funds returned 6.8 per cent per annum over eight years while retail funds returned 4.6 per cent per annum over the same period.

The PC said in making its recommendations it would consider the following issues: •

Are the criteria required of MySuper products sufficient for the selection and ongoing assessment of superannuation funds eligible for nomination as default funds in modern awards?

•

Is there a case for introducing a set of criteria over and above those required for MySuper products for funds to be eligible for nomination as a default fund in modern awards?

•

To what extent do workers covered by different awards have different investment needs? Should any such differences be taken into account in the selection of default superannuation funds for inclusion in awards?

•

How relevant is a fund’s past net performance as an indicator of its potential future performance

•

Should fees be factored into the selection of default superannuation funds for inclusion in awards and if so, how?

The inquiry was jointly announced by the Minister for Employment and Workplace Relations and for Financial

knowledge that for the past 32 years he had made a major contribution to the national and local building and construction industries. Prior to his arrival in Canberra in 1963 he had served with the Snowy Mountains Authority as a field industrial officer. For myself 1987 marked the end of my 37 year career in Canberra’s public sector and the beginning of a new role as a consultant on Canberra and regional issues and as a teacher in the Faculty of Management at the University of Canberra.

Vale - David Andrew 1924 - 2011 Master Builders ACT Executive Director 1964-1980 by Alan Foskett

My first contact with David Andrew was in the mid-sixties when he was Executive Director of the Master Builders Association of the ACT and I was an officer of the National Capital Development Corporation. Our mutual interest in the planning and development of the national capital led to an ongoing association into my later public sector appointments in the fields of ACT Education and ACT Health, both of which had significant planning and building components. Although David’s subsequent appointment as Executive Director of the Master Builders Federation of Australia greatly expanded his sphere of interests in the national building industry we continued our regular discussion on what was happening in Canberra, sometimes over an ale or two in the friendly environment of the Canberra Club. To some extent the year 1987 was a significant one for both of us. David retired in that year content in the

This in turn, provided me with greater scope to indulge in the long standing interest in writing and publishing about aspects of Canberra’s economic, social and sporting history. And this is when David and I were able to spend more time together. David was passionate about the history of Canberra’s building and construction industry and the need to document more about the builders of Canberra and the evolution of industrial relations in the building industry especially the period from the National Capital’s earliest beginnings to the building boom of the post World War II period. And with the help of David’s wide network of contacts in Canberra in both the building and union sectors, he gathered strong support to begin research and documentation of the book ‘On Solid Foundations – the Building and Construction of the Nation’s Capital 1920 to 1950’. David dedicated ‘On Solid Foundations’ to ‘those pioneers of the building and construction industry who played such a vital role in the early development of our national capital’.

Many of these men and their families worked and lived in difficult, often atrocious conditions, but nevertheless they toiled long and hard and with great skill. The result was a remarkable achievement over three decades of fluctuating growth and fortunes for our national capital. These workers laid a very solid foundation for those who were to follow and fulfil the goals, visions and dreams of those early pioneers. The book was launched in October 2001 at the Canberra Museum and Gallery by Chris Uhlmann, ABC journalist and reporter. At the launch Uhlmann paid tribute to David’s long and outstanding career in Canberra’s building and construction industry and the great contribution he had made to it. Following the book launch, ‘On Solid Foundations’ was given widespread commendation particularly for the way it recorded the key and often closely interrelated interests and actions of the builders and the building companies, the workers and the union movement. David felt justly proud of his role in making ‘On Solid Foundations’ available to historians and the wider Canberra community.

As the construction industry strives for innovation, the industry looks towards a new standard of techniques that enhance the protection of materials and products. Shield N Peel are the leaders in Temporary Surface Protection, providing an ecofriendly solution that offers surface protection for glass and window frames during the construction or renovation process.

providing an eco-friendly solution that offers surface protection for glass and window frames during the construction or renovation process.

In the past, the options for glass protection have been limited to a range of crude, time consuming products such as selfadhesive film that blows off in the first storm, through to the spraying of WD40 on your expensive range of brand new windows and intricate framing.

CANBERRA BUILDING NEWS EDITION 1 - 2012

TEMPORARY SURFACE PROTECTION SHOULD BE EVERYONE’S BUSINESS

As we delve deeper into the 21st century, the construction industry is striving for innovation, leading to a new standard of techniques that enhance the protection of expensive materials and providing the window industry with a wider range of options for their range of products. Offering Shield N Peel on finished windows and metal window frames or supplying to customers with “Do it yourself ” easy to apply buckets (for application on site) is driving an ever growing stream of business that ultimately coincides with the ever demanding and competitive world we are living in.

See page 47 for more information ➢ or visit www.shieldnpeel.com.au

Subcontracting could be controlled, utilising a special ABN system. Ross Burke MPCIS Firstly, Workers Compensation insurance should be changed to include Sole Traders and Partnerships. i.e. Sole Traders and Partnerships would be able to get WC, not only for their employees and contractors as exists now but also for themselves. I am told by a member of Insurance Council that this is a simple process and there is no logical reason why this does not already exist. Secondly, Sole Traders and Partnerships, who operate or wish to operate in the building industry would need to reapply for a special ABN with conditions attached, i.e. register to pay Superannuation, take out Public Liability and Workers Compensation Insurance, covering themselves and anyone they employ. All being reportable to ATO. Thirdly, ATO could have an ‘ABN default’ web site (listing only ABN numbers, where Companies and employers could verify ABN authenticity and currency). If companies

or employers were to employ a Sole Trader or Partnership who is in ABN default, they would be accountable with fines and penalties. The ‘ABN in default’ worker would then find work as a direct employee and be held accountable as a PAYG tax payer. Superannuation Funds and Insurance companies should also be accountable to ATO. Company managers and employers would be responsible and accountable for sighting WC, Public Liability ‘Certificates of Currency’, superannuation registration details, and ABN default details on the ATO web site. This would make those involved more accountable and let everyone compete on an equal footing and be protected against claims and disputes.

ACIF Forecasts become bigger, better in April For every business in the building industry, planning comes from answering the big questions – is it best to plan for work in large renovations, or will pressure on household income see more small renovations instead?

Perhaps the real work is going to be in the retail and

commercial sector, or should we plan to get out the big machines and go for engineering construction? ACIF Forecasts, the forecasting service provided by the industry peak body, Australian Construction Industry Forum (ACIF), have been helping businesses of all sizes plan effectively for more than ten years. From April, ACIF Forecasts are set to become even more valuable with a significant expansion in scope and detail. The new extended format also includes in depth analysis of 21 locales around Australia, including Canberra and the surrounding area. The new information will help Australian Capital Territory businesses determine: Where is the new work coming from? What types of work? Are costs going to increase, and when? And where will we get the people we need? ACIF Forecasts provide invaluable market intelligence for businesses of all sizes and all sectors, from the largest of construction companies to small consultancies. They include the outlook for housing; commercial building markets; building and construction costs; the capital markets; and issues driving productivity and profitability. ACIF Forecasts are updated twice a year and will be released at ACIF Briefings to be held 2-5 April 2012. Register for the ACIF Briefing to be held in Canberra at 7am on Wednesday 4 April 2012 and hear John Miller from Master Builders Association ACT and other local industry leaders discuss the outlook for construction costs, housing, commercial property and more. “Our record of accuracy over the last ten years has made ACIF Forecasts the compass to the future for construction in Australia,” says Peter Barda, Executive Director of ACIF. “The new enhancements to the ACIF Forecasts will help ACT businesses to remain sustainable during uncertain times and to grow through the good times.” “ACIF Forecasts are developed by experienced industry forecasters before rigorous review by the experts on our Construction Forecasting Council. They have been proven to be highly credible and accurate, and are a reliable industry resource available for free to businesses large and small.”

About ACIF Australian Construction Industry Forum (ACIF) is the peak body and meeting place of the leaders of the construction industry in Australia. ACIF facilitates and supports an active dialogue between the key players in residential and nonresidential building, and engineering construction, other industry groups, and government agencies. ACIF Members are the most significant Associations in the industry, spanning the entire asset creation process from feasibility through design, cost planning, construction and building and management. ACIF harnesses the resources of its Members to research and develop initiatives that benefit businesses of all sizes, from the largest of construction companies to small consultancies.

About ACIF Forecasts ACIF Forecasts are rolling ten year forecasts of demand across residential, non residential and engineering construction in Australia. The Forecasts are prepared by respected economic modellers and overseen by ACIF’s Construction Forecasting Council, an industry panel of expert analysts and researchers. ACIF Forecasts are used by thousands of professionals each year, from across the full range of stakeholders, from major organisations to small consultancies. Updates to the ACIF Forecasts are released first at ACIF Briefings held around Australia in April and September. More information about ACIF is available from www.acif.com.au/forecasts. More information about ACIF and the ACIF Forecasts is available at www.acif.com.au.

CANBERRA BUILDING NEWS EDITION 1 - 2012

CONSTRUCTION AND CIVIL INDUSTRY DOCUMENT MANAGEMENT

24/7 ACCESS

RedHub - the new web based construction industry document management system, that is reshaping the market in terms of functionality and value for money.

FAST EASY UPLOAD/DOWNLOAD ADVANCED INTERNAL MESSAGING IPAD AND SMARTPHONE COMPATIABILITY

What is RedHub?

An online document management system for Developers, Architects, Project Managers, and Estimators.

of design, review, approval, tender and construction with a detailed track of dates and recipients that can be viewed in a live report form.

A central place for all project documentation. It is a user friendly system that provides access to store, track, distribute, and receive documentation, and project communications.

RedHub messaging is a sophisticated tool that will record all communications for your project. Messages are categorised into types such as requests for information, progress claims, variations, site instructions, general communications, and design.

A secure, open platform, for all project participants to access at any time, and from anywhere.

With RedHub messaging, communications are centralized, tracked and then archived as a permanent record.

A tool for companies to use across all projects. From the smallest of jobs to any large scale project, the RedHub system is designed to be cost effective.

Tendering with RedHub

Managing your Project RedHub is a complete document management system. From the conceptual phase through to the maintenance and archiving stages, your documentation can be viewed, uploaded, downloaded, marked up, revised, superceded, distributed and archived. By employing the RedHub central platform, documents progress through the phases

How is RedHub Different? RedHub is a simple, easy to use document management system, designed and built by a team grounded in construction experience, and with eleven years experience in document management. Companies are discovering that the RedHub system of management not only has performance and functionality, it represents extremely good value for money, particularly when utilized across all projects as a company standard.

The RedHub tendering module is a well thought out fast and reliable tool. Estimators and Project Managers who are looking for an efficient system that is easily understood and operated by subcontractors and suppliers, will be impressed with RedHub’s performance and features. • • • • • •

Build custom trade packages. Attach a scope of work and personalised tender invitation. Send and track subcontractor invitations and responses. Add addendums to trade tenders. Receive tenders directly through RedHub. Send and receive communications via RedHub.

Contact www.redhub.com.au email: info@redhub.com.au phone: 02 6280 8080 23

Winter is closer than you think From ActewAGL

In the Canberra climate, where the seasonal average minimum in winter is 1°C and the maximum average is 12°C, now is certainly the time to think about your heating needs. If you’ve forgotten what Canberra’s frosty mornings are like, here’s a chilly reminder - last year Canberra recorded the lowest capital city temperature of -8.0°C on 29 July*. In the lead-up to winter ActewAGL’s natural gas campaign – Time you thought about gas – promotes the benefits of natural gas as an energy source. ActewAGL Manager Gas Networks Macleay Connelly said, “Natural gas heating is efficient and cost effective, provides instant warmth, and there’s a variety of options to suit any home and area – large or small. “We encourage residents who are considering getting natural gas connected to talk to their gas retailer soon to arrange the installation of their gas meter and natural gas service, before winter arrives.” For more information visit: actewagl.com.au/thinkgas

Wood heater replacement program

Choosing, installing and maintaining gas appliances

The ACT Government, in association with ActewAGL, is offering incentives to encourage people to replace their wood heater with a more efficient mains supplied gas heating system.

1. Choosing appliances

The subsidy offered is Ducted Gas Heater: $800† or Flued Gas Heater: $600†. For more information, or to apply for the Wood Heater Replacement Subsidy, which runs from 1 March to 31 December 2012 please visit: environment.act.gov.au or call Canberra Connect on 13 22 81.

If you’re renovating or landscaping Always consider the location of gas pipes when planning to renovate or landscape. Before you plan a job call Dial Before You Dig on 1100 or visit 1100.com.au to find out what services are on and around the block. *Figures have been sourced from Bureau of Meteorology’s 2011 Annual Climate Summary. †Application criteria apply.

Ensure they are approved by an Australian certifier, such as the Australian Gas Association (AGA) and look for built-in safety features such as: • • • •

anti-tilt switches automatic ignition systems a flame failure device adjustable temperature control to reduce the chance of scalding.

2. Installing appliances Only use licensed gas fitters for installation. Ensure that you receive a Gas Certificate of Compliance when installation is complete, showing that the work complies with Australian Standards. Visit the ACT Planning and Land Authority website: actpla.act.gov.au for a list of licensed gas fitters and accredited gas workers in the ACT or call 6207 1923 to get accredited. 3. Maintaining appliances Natural gas appliances, such as hot water systems or heaters, should be checked and maintained annually by a licensed gas fitter in accordance with the manufacturer’s guidelines. Always ask for a written report of the work undertaken.

CANBERRA BUILDING NEWS EDITION 1 - 2012

Time you thought about gas? In the Canberra climate you can’t beat the comfort of natural gas heating. What’s more, natural gas is cheaper* and better for the environment†. So if you’re building, renovating or replacing old appliances, choosing natural gas makes a lot of sense. Find out more on the ActewAGL website.

Find ‘think gas’ on facebook.

actewagl.com.au/mbathinkgas

* Natural gas provides more energy for your money than electricity. Electricity pricing for the ActewAGL Always@Home plan was used as the basis for comparison with the Always@Home gas plan. † Compared to traditional coal-based electricity generation. ActewAGL Distribution ABN 76 670 568 688 a partnership of ACTEW Distribution Limited ABN 83 073 025 224 and Jemena Networks (ACT) Pty Ltd ABN 24 008 552 663. CCA312/06

to deliver quality projects you need quality people speak to the experts We are the recruiting experts in qualified, professional and skilled people within the building and civil disciplines. Our deep expertise allows us to bring the right person together with the right job. It’s our extensive database, local market knowledge and fast and accurate response that has allowed us to deliver such a real result for over 34 years. Our expertise gives us the confidence to continue being the true leaders in recruiting for the built environment. The technical disciplines we cover include: • General Managers • Construction Managers • Commercial Managers • Project Managers • Site Managers • Estimators/Cost Planners • Contract Administrators • Project/Site Engineers • Quantity Surveyors • Forepeople • Leading Hands • Project Coordinators • Graduates • Cadets • Property Management • Operations Manager

• Facilities Manager • Lease Administration • HVAC • Electricians • Maintenance • Civil Labourers • Carpenters • Plant Operators • Plumbers • Concreters • Steel Fixers • Doggers/riggers • Draftspeople • Architects • Electrical/Mechanical/Structural/ Civil Engineers

contact hays in canberra at cp.canberra@hays.com.au or 02 6230 5142.

hays.com.au

Take your pick: • Ford • Mitsubishi • Isuzu Ute • Great Wall

• Ssangyong • Mercedes-Benz • Kia • Chery

Photo: Ford Ranger

Woden Belconnen Mitchell Fyshwick Queanbeyan Goulburn

Cnr Melrose & Hindmarsh Drvs. Phillip ACT 2606 Cnr Cohen & Josephson Sts. Belconnen Town Centre ACT 2617 133 Flemington Rd, Mitchell ACT 2911 38 Collie St, Fyshwick ACT 2609 41 Yass Road, Queanbeyan NSW 2620 128-130 Hume Street, Goulburn NSW 2580

Tel: 02 6122 22 22 Tel: 02 6256 2300 Tel: 02 6201 1800 Tel: 02 6175 5500 Tel: 02 6166 1111 Tel: 02 4823 1000

Fax: 02 6122 2265 Fax: 02 6256 2366 Fax: 02 6201 1866 Fax: 02 6175 5566 Fax: 02 6166 1166 Fax: 02 4823 1066

www.mcgrathautogroup.com.au 27

local charities that provide services to Canberra’s homeless and disadvantaged are set to benefit from the auction of the Franklin Charity House in late 2012.

An initiative of the Master Builders

Association of the ACT and the Land Development Agency, the Franklin Charity House is a true example of the ACT building and construction industry coming together to support the local community. The construction of the Franklin Charity House will be led by Classic Constructions, a business that is recognised as one of Canberra’s leading construction companies and renowned for its quality and service. The Franklin Charity House is set to become a benchmark in residential construction. The two storey, two garage, 386 square metre house will feature a 7 star thermal rating, achieved by its orientation on the block and its modern slab construction together with the use of double glazed windows and extensive insulation. The House will also feature an underground 10,000 litre rainwater tank and the lower level will be built to Adaptable Housing standards making it accessible for older people and people who may have physical disabilities.

Principal Partners

Around 70 Franklin Charity House sponsors, local politicians and charity representatives turned out for the official launch of the

Franklin Charity House project by ACT Chief Minister Katy Gallagher on Tuesday 20 December 2011. At the launch, the Chief Minister remarked ‘I congratulate members of the building industry in this city who have a long and proud history of supporting worthy causes and the Franklin Charity House is certainly no exception’. Throughout the winter months of 2012, the Franklin Charity House will open its doors to the public. During this display period various free information sessions on energy efficient building techniques will be on offer. Despite the constant rainfall Canberra has received recently, the House is on track. Late last year, Artistic Concrete laid the concrete slab and Branco Boilers installed the Hydronic Heating. The team from Dawe Constructions put up the lower level frames, Euro Contractors have commenced laying the bricks and Enviropest Pty Ltd are onsite to install the termite control barrier. The Master Builders Group Training third year apprentices saw an opportunity to put their skills to work in support of the Franklin Charity House by building a cubby house for the backyard. Charity beneficiary, the

Canberra Men’s Centre, are getting involved with the men currently in their programs offering to paint the cubby house in colours carefully selected to match the Franklin Charity House by Melinda Boag Design. For more information on the Franklin Charity House visit: www.franklincharityhouse.org.au where you can view the inspirational video clip and hear straight from the charities, view all of the current Franklin Charity House supporters and track the construction progress. All support is greatly appreciated. If you would like to be involved with the Franklin Charity House, contact:

David Leitch tel: (02) 6175 5970 email: dleitch@mba.org.au

(AUST)

Foundation & Hydronic Heating Under floor heating creates a feeling of well being, as it gently and evenly warms the home. We are grateful to Branco Boilers who have installed a Rehau Under Floor Heating System. This type of heating works by circulating warm water through a network of cross-linked poly-ethlene pipes laid in the slab, efficiently spreading heat throughout the house. Using a modern control system the underfloor heating provides the right amount of heat to various rooms individually controlled by thermostats.

The Slab

ARTISTIC CONCRETE

CANBERRA BUILDING NEWS EDITION 1 - 2012

update

Construction

onaro Mix M specified concrete pty ltd

Our thanks go to Rick Meneghel and his team at Artistic Concrete for their work preparing and the pouring of the Waffle Pod Slab. Monaro Mix Specified Concrete help with the concrete supply. The Waffle Pod system is an innovative method of constructing concrete slabs, providing enormous strength and durability and significantly reducing building costs. The system uses ‘on-ground’ rather than ‘in-ground’ slabs, eliminating the need for labour intensive trenching. The environment friendly system uses polystyrene void formers arranged on the levelled building area in a grid pattern with reinforcing between and above the void formers. Concrete fills the spaces between and across the Ribbed Raft to form a slab over the entire area.

The Frames

DAWE

CONSTRUCTIONS

CRT Building products is Canberra’s longest established building products manufacturer. CRT started trading as Canberra roof trusses in 1964. They now employ over 50 local Canberrans in a range of fields from designers to labourers. CRT building products has always focused on the providing the best quality building products and service to the Canberra market and their help with the Franklin Charity House is no exception. Damian Dawe and his team from Dawe Constructions have already erected the ground floor frames and will be back shortly to do the second storey frames and the trusses.

The Brickwork Face brick is classified as one of the most durable building materials and much of the Franklin Charity House’s exterior will be face bricks supplied from the Austral Bricks™ Symmetry range. Our design expert Melinda Boag has chosen from the range of modern colours with ‘Asphalt’ fitting perfectly. Austral’s Symmetry™ Range of bricks has an ultra smooth finish that will give the Charity House a sharp and sophisticated look. Choosing the brick is only half the exercise, we needed a quality bricklayer and Neil Greenway from Euro Contractors has come on board and in between the rainy days has started the lower level brickwork.

ThermAL

Trend Windows

Trend thermAL energy efficiency windows & Doors is a revolutionary hybrid window product combining the strength and security of aluminium with ERP, a new patented insulating skin. ERP is an advanced Extruded Rigid Polymer, which incorporates a number of innovative properties. These properties include pre-stressing to eliminate expansion and contraction, UV stabilisation to protect from sun exposure and impact modification to protect against accidental damage. Trend thermAL has been designed to accommodate double glazed units up to 24mm for maximum energy efficiency. With over 60 glazing options available, there is one to suit any situation or climate zone in Australia. For design and aesthetic purposes,Trend thermAL enables selection of a two colour option. One colour for the aluminium exterior and a separate colour for the ERP interior. The colours have been tested for non-degradation and steadfastness in order to withstand harsh climatic conditions. This innovative feature allows for a bold exterior colour choice while a more subtle and complimentary colour can be used for the interior. When compared with existing energy efficient window options, Trend thermAL is a more cost effective solution by far. Trend thermAL is available in awning, casement and fixed windows and sliding doors.

The Windows - Trend Windows Thank you to Trend Windows for providing their energy efficient thermAL windows and doors. For more information about this unique product contact the team at Trend Windows.

Tel: 6260 1266 Show Room: 74 Sheppard St Hume A.C.T. 30

email: info@trendwindows.com.au www.trendwindows.com.au

CANBERRA BUILDING NEWS EDITION 1 - 2012

Construction

A synergistic approach Independent Project Marketing establishes a dedicated team of professionals from each of Independentâ&#x20AC;&#x2122;s key business units to work in synergy to deliver both service and market leading results to each and every development project we are engaged to promote and sell. We are a multi-disciplinary team with the skills and expertise to engage at every stage of the project, from site identification and feasibility, through the planning and marketing cycles to beyond final settlement. These synergies have been proven to maximise sales results and your bottom line.

To ensure your next project realises its maximum return, contact Independent.

P +61 2 6209 1701 E projects@independent.com.au

Independent Property Group Sales Pty Limited Lic. Agent, Ground Floor 91 Northbourne Avenue, Turner ACT 2612.

Screencraft recently on the set of “The Surfing Show”

CONNECTING WITH CLIENTS THROUGH VIDEO WITH SIGNS OF A SLOWING PROPERTY MARKET, NOW IS THE TIME TO MAKE SURE THAT YOUR COMPANY STANDS OUT. TO ACHIEVE THIS, IT IS IMPORTANT TO ENGAGE POTENTIAL CLIENTS THROUGH STRATEGIC COMMUNICATION.

Award winning Canberra-based media production company Screencraft has been helping companies use video to engage audiences for over ten years. Recently, Screencraft worked with the Master Builders’ Association (MBA) on the Franklin Charity House campaign. Screencraft produced a video that explained the purpose of the Franklin Charity House and how the charities involved will benefit from the proceeds of its sale.

“We are proud to have worked with the MBA on this fantastic cause because we know the funds raised by the Franklin Charity House are going to have a positive impact in our community,” Screencraft Managing Director, Michael Fardell said. “What I loved most about the project is that the building industry has pulled together to do something special.”

SCREENCRAFT IS NOT NEW TO THE PROPERTY AND BUILDING INDUSTRY. Using the communication tool of video to market property developments and services, Screencraft has worked with many property developers in producing web videos, DVDs and television commercials. “We were recently engaged by Geocon to produce a video to showcase their new hotel ‘Abode’. We produced a short video that conveyed the hotel’s unique qualities as well as their customer service values.” The video was successfully launched at a Geocon key stakeholder event by Geocon Managing Director, Nick Georgalis, and received a strongly positive response. When it comes to technology, Screencraft prides itself on keeping on top of the latest equipment and processes, ensuring the most efficient and effective results for clients. Paired with this is a keen motivation to deliver high quality and creative visuals to clients.

“We recently produced a video for a large upcoming development in Belconnen. The building will be 15 stories high but is currently a car park. We needed to find a way to showcase the potential views from the new development and highlight its terrific location.

“Our solution was to use a purposebuilt remote controlled helicopter equipped with a high definition video camera to capture the view,”Michael said. TVC for Geocon’s Abode Apartments

“The helicopter soared about 20 metres into the air and captured some awesome angles. We then obtained 3D renders of the building and superimposed the building into the shot. “This is an excellent method for developers wanting to get pre-sales of their yet-to-be-constructed buildings. The videos can highlight the great selling points of the building and the interiors with the bonus of showing the planned exterior of the building in its future location,” Michael said.

On location with the AFP Filming an ANU TVC

“The video for this project has been distributed on the web and DVD, making it a useful resource for agents because potential buyers can see what they’re getting and get excited about it.” Screencraft has worked with some of Canberra’s best companies including the Land Development Agency, Walker Corporation, Independent Property Group and Geocon on marketing videos, television commercials and can also produce videos for staff training and internal communications. In 2010 Screencraft won a Silver Dolphin trophy at the Cannes Corporate Media and TV Awards in France. The team at Screencraft enjoys working with clients to achieve their communication goals, and being internationally recognised on top of this is a bonus. “It’s simple: we love what we do,” Michael said. “We take a fresh approach to our work and have a highly skilled and creative team that enjoys working with our clients to achieve their goals.”

CONTACT SCREENCRAFT 3/285 Canberra Avenue Fyshwick ACT Australia T. 02 6239 7400 info@screencraft.com.au www.screencraft.com.au For new business enquiries: Michael Fardell Managing Director T. 02 6239 7400

Austral Bricks & James Hardie

Austral Bricks™ are very proud to be associated with the Charity house development at Franklin. Austral has had a long and close relationship with both the Master Builders Association of the ACT and Classic Constructions so it made sense to come on board to support such a worthy cause. The Charity House is a good way to give back to the community that has supported our business over many years.

James Hardie have come on board the Franklin Charity House project with the provision of a cladding and flooring system.

Austral Bricks™ is a part of the Brickworks Group which includes Bristile Roofing™, Auswest Timbers™, Austral Masonry™ and our newest addition Austral Precast™. Brickworks have a long history in supporting various charities throughout Australia. For the past 10 years the Brickworks has been donating $30,000.00 a year to the Children’s Cancer Council. On top of this participating staff members donate $1.00 a week from their wage that also goes to this charity. Overall around $60,000.00 is donated to the Children’s Cancer Council. This money is used to buy new medical equipment.

Challenging conventional building methods, they ingeniously combine workability and durability with artful simplicity. Not only is Scyon™ resistant to damage from termites, rot and fire1, but it can also be gun nailed and is easy to cut – like timber. From breathtaking facades, to resilient flooring, Scyon™ opens the door to a new generation of sustainable, efficient and durable products.

Austral Bricks would like to thank the Master Builders Association of the ACT for giving them the opportunity to be involved with this development and are looking forward to continuing to work together.

Smarter building begins before a single hammer is lifted. It starts from the moment the building materials are designed and produced. This new generation of sustainable building products feature the advanced cement composite Scyon.™

Scyon Stria – running vertically on second storey of charity house. Stria is a wide cladding board with a 15mm horizontal and vertical joint that has the classic appeal of decorative render. Preprimed and easy to install, Scyon™ Stria™ cladding is the fast way to achieve a timeless look, and that’s smarter construction. In residential and medium density applications wherever a classic yet contemporary design is required, including external walls in full wrap or composite construction, upper-storey and ground-level extensions, and internal feature walls. Scyon Secura flooring throughout the second floor. Scyon™ Secura™ interior flooring is a heavy weight structural flooring substrate that can be easily used for tile, vinyl and carpet finishes over timber or steel floor joists in both residential general interiors and wet areas. The strong, no-squeak feel of Secura™ interior flooring gives a solid impression without the weight and cost of concrete. Secura™ interior flooring has a 10-year product warranty. 1

When installed and maintained correctly and to the extent set out in James Hardie’s published literature current at the time of installation.

34 34

CANBERRA BUILDING NEWS EDITION 1 - 2012

of the Franklin Charity House

Supporters

Thank you to the following companies and organisations for their ongoing support of this important initiative.

canberra menâ&#x20AC;&#x2122;s centre

Supporting Partners

Media Partners

Benefitting Charities

Principal Partners

(AUST)

A Murray and Sons

Enviropest

Monaro Mix

AC Blue

Euro Bricklaying

Palmers TV

Artistic Concrete

Gainsborough

Rivoland Tiles

Austral Bricks

Herzog Steel

Southcoast Stairs

Barresi Painters

Hawker Roofing

Regency Screens

Branco Boilers

Independent Property Group

Rovera Scaffolding (ACT)

Capital Gas Works

James Hardie

Simico

Capital Insulation

M & S Kitchens

Southern Innovations

Coates Hire

M & S Surveyors

Trend Windows

CRT

Master Builders Fidelity Fund

Easy Care Landscaping

Meyer Vandenberg

If you would like to be a part of this important local project, please contact: David Leitch t 02 6175 5970 e dleitch@mba.org.au w franklincharityhouse.org.au

Events

Charity Golf Day

CHARITY GOLF DAY

Platinum Sponsor

In aid of

2012

Monday 20th February at the Yowani Country Club, Lyneham

The 2012 Master Builders ACT Annual Charity Golf Day was held on the 20th February 2012 at the Yowani Country Club and Restaurant. The weather was kind, and the rain held off till all players had finished their rounds. There was a field of over 200 players this year all vying for bragging rights over their colleagues for another twelve months. The “Speed Cop” on the 10th hole provided a lot of fun, with each player winding up and letting loose to impress with their ball speed. Some were more successful than others. Topping the speed scale was Huia Edmonds with a ball speed clocked at 277km/h, the slowest was 30kph, which was actually 40 km/h slower than the fastest divot!

Speed Cop 277kph

Fastest Ball Speed

Slowest Ball Speed

Photo

Thanks to Steve Gavagna of Goodman Law speed cop Sergeant ‘Shono Merci’ was on hand to issue some infringement notices to players teeing off from the 10th hole.

➢ ➢

Fastest Divot!

Players celebrate a fine putt on the par 3 16th hole.

➢ 36

30kph 70kph

Photo

Guests enjoyed the comedy by Kenny Graham on the night.

Yowani Country Club and Restaurant, Lyneham

The Charity

This year the charity we were supporting was ACTAADS – The ACT Association for Advancing Disabled Sport and Recreation. Thanks to the very generous support of the charity auction, as well as all players and guests digging deep for the raffle over $12,000 was raised.

The Evening

As always the food was excellent. Entertainer Kenny Graham provided a lot of laughs with his ‘drunken’ character and kept the audience entertained toward the night’s end. Without the support of sponsors such as John McGrath Auto Group, Adjudicate Today, Village Building Co. and the Commonwealth Bank these types of events are just not possible. A big thank you also to Cam Sullings of Mix 106.3 who MC’d the night and to all the Yowani staff.

CANBERRA BUILDING NEWS EDITION 1 - 2012

The Venue

The following generously donated items for the auction on the night. Golf scooter with bag carrier donated by Phil Whitelock MD, the Wheelchair Factory - Value $6,000 Kailis Silver and Pearl Pendant Donated by David Tudehope, CEO Macquarie Telecom 7 nights accommodation at the Australis Sovereign Hotel on the Gold Coast Value over $1,000 Signed football by Premiership Canberra winning Raiders – donated by Rod Jenkins of 6 Constructions Canberra Capitals basketball signed by WNBA Star Lauren Jackson – donated by Funnell Celebrity Speakers Winning Homes Advertising Full Page – donated by the Master Builders Association of the ACT

Prizes Longest Drive handicap player (0-12)

Jason Croker

Longest Drive handicap player (13+)

Julie McMahon

Longest Drive non handicap player

Mitch Daniher

Nearest the pin handicap player (0-12)

George Zolotic

Nearest the pin handicap player (13+)

Mark Porreca

Nearest the pin non handicap player

Bruce McCauley

Best Dressed Team

3 Play Constructions

Bradman Team Prize Manteena Gen 3

Best gross score for an open team

6 Constructions

Best net score for an open team

Matt Priestley, Andrew McLean

Tony Branson, Mike Turner Best net score from a handicap team

AC Contractors (pictured right)

Best gross score from an open team

John McGrath Auto Group Team

Photo

➢

Best Ladies score

The team from AC Contractors took out one of the top prizes for the day. Pictured here with Ross Barrett (far left) and John McGrath (second from left).

CANBERRA SAND & GRAVEL

Canberra

GOOGONG SALES LAUNCHED THE NEW TOWNSHIP OF GOOGONG LAUNCHED ITS FIRST SALES IN MARCH AND HAS ALREADY ACHIEVED STRONG INTEREST FROM PROSPECTIVE BUYERS THROUGHOUT CANBERRA AND THE LOCAL REGION.

CIC Australia’s Chief Operating Officer, Tony Carey, presents the Vision for Googong at a seminar at the National Convention Centre in February

QUEANBEYAN RIVER

TO QUEANBEYAN AND JERRABOMBERRA

GONG DAM ROA GOO D

RO AD

CANBERRA

COO

CLUB GOOGONG

OLD

GOOGONG NORTH OVAL

NEIGHBOURHOOD CENTRE

ANGLICAN SCHOOL

PRIMARY SCHOOL

GOOGONG CENTRAL

TOWN CENTRE

AQUATIC CENTRE

HIGH SCHOOL

GOOGONG COMMON

HILLTOP PARK LOOKOUT

GOOGONG EAST GOOGONG WEST

POTENTIAL PRIVATE SCHOOL

NEIGHBOURHOOD CENTRE NEIGHBOURHOOD CENTRE

NEIGHBOURHOOD CENTRE

GOOGONG SOUTH GOOGONG DAM

TO BURRA AND COOMA

A seminar conducted in mid February not only revealed Googong’s spectacular design concept, but also set the scene for the township’s evolution over the next 20 to 25 years. Googong is being developed by Googong Township Pty Ltd – a joint venture between CIC Australia and Mirvac Limited – on 780 hectares of former grazing land 4 kilometres south of Jerrabomberra and about 20 minutes from Canberra’s CBD. Once complete, Googong will be a new community of about 16,000 people, almost half the size of Woden. “It will be a special place in a very special location,” says Googong Senior Project Director Mark Attiwill. “I think people are already sharing in our vision for Googong’s future and as the word spreads about its features and 38

benefits, the impression we get is that people are genuinely excited about the prospect of living here.” 0

200

400

800m

Almost a decade has gone into planning Googong and works are set to start on its very first neighbourhood soon. Those who registered as part of the seminar in February will be able to select from the first blocks released at Googong. These range from 350m2 to 1050m2. Design guidelines have been established to help maintain the township’s aesthetic and ensure the vision for Googong is reflected in the way the community unfolds and develops. These will ensure house designs relate to one another within a street, a neighbourhood and across the whole of Googong, and that a level of quality is maintained for every house. They’ll also help protect the investment purchasers make in their homes.

”

Googong Senior Project Director, Mark Attiwill

CANBERRA BUILDING NEWS EDITION 1 - 2012

“

Design guidelines mean that each house will be part of a consistent and high quality street, and that they come together to create a cohesive and well designed place to call home.

“Of course, there’s no obligation for purchasers to choose a guild builder—they are free to work with the builder of their choice so long as the design guidelines are met,” says National Sales Manager Frank Joris. As well as quality design, sustainability and innovation will be fundamental to Googong. Mark says that because Googong is completely new and totally selfcontained, there is an opportunity to showcase the very best in design and sustainability across its social, cultural, environmental and economic areas. This includes a state-of-the-art Integrated Water Cycle management system, including a dedicated water treatment and recycling plant, and a Googong-wide electric car network with EV ready infrastructure throughout the township. “Googong is a blank canvass, so it’s important we get it right,” says Mark. “We want to build something that is appropriate to the location and Googong’s future generations. Design guidelines mean that each house will be part of a consistent and high quality street, and that they come together to create a cohesive and well designed place to call home.” To help ensure the vision for Googong is achieved, a builders guild has also been established to provide purchasers in the first release of land with an on-tap source of expertise and local know-how. The guild is made up of highly credentialed building professionals from throughout Canberra and NSW who will have pre approved designs to help purchasers through their early decision-making. These companies will also build homes at Googong’s first demonstration village.

Social infrastructure to be delivered over the next few years includes the spectacular Club Googong as well as a series of community clubhouses and the township’s first school, which is planned for students in 2015. “Our team of urban planners, water engineers, infrastructure and transport specialists, as well as sustainability experts have worked hard to design a masterplanned community,” says Mark. “The result is that residents will be enjoy a lifestyle that’s relaxed, socially rewarding and sustainable. “We want residents to feel that, no matter what stage of their life they’re at, Googong is a place where they belong, and a place where they can grow along with the town.”

2012 MASTER BUILDERS & BORAL

EXCELLENCE IN BUILDING AWARDS 29 June, National Convention Centre Now in its 22nd year the Awards recognise and celebrate outstanding achievements by exceptional companies and individuals in the ACT building and construction industry. These awards are considered the highest accolade that the industry can bestow. To conduct an event on the scale of the 2012 Master Builders and Boral Excellence in Building Awards would not be possible without the support of sponsors. Many of our sponsors have been supporting these awards for many years; significantly, Boral has sponsored the event every year of the Excellence in Building Awards and for the last 20 years Boral has been the naming rights sponsor.

The awards will again be publicised through four publications maximising the exposure of finalists and winning entries to the industry and general public. You can visit mba.org.au to find out more on Winning Homes, Winning Projects, the Canberra Times supplement and the next edition of the Canberra Building News that will feature all the glamour and major winners in the post-awards feature. Exposure in the four Award publications is an additional benefit resulting from entering the Awards and winning an awards category.

MAJOR SPONSOR

GOLD SPONSOR

SILVER SPONSOR

BRONZE SPONSOR

ware

BLANCO 40

Category winners receive a superbly presented certificate; they are also included in the Awards gallery on the Master Builders website and become eligible, given a corresponding category, in the Master Builders Australia National Excellence in Building and Construction Awards. The Awards event â&#x20AC;&#x201C; Friday, 29thJune 2012 National Convention Centre. Please contact Lorraine Brook on 6175 5920 if you wish to book tickets.

Provided by the Concrete Pipe Association of Australasia

AS/NZS3725:2007 “Design for installation of buried concrete pipe” is the Australian Standard required to calculate the vertical working loads on steel reinforced concrete pipe, along with the installation requirements that work hand-inhand to ensure that the appropriate class of pipe is chosen for the project. With this in mind, the Standard makes a very definitive statement with respect to this design -“Each pipe shall be evenly and uniformly supported along the length of its barrel by suitable Picture 1 fill material”. Why is this so important? Failure to meet this condition can result in the steel reinforced concrete pipe being asked to act as a beam. The pipe relies on internal hoop strength within the structure to accept a load, but cannot act as a simply supported beam or cantilever when the foundation and bedding conditions are not uniform. This can result in cracking, in particular circumferential cracking. Whilst the issue is not widespread, it is a problem when stakeholders are not aware of the pitfalls of unstable ground, poor handling, inappropriate installation, and excessive construction loading under these conditions. So what should we look out for? •

Small diameter pipes, typically 225DN – 450DN, are most vulnerable to external circumferential cracking under these conditions (also known as “broken backs”), and should be installed with great care.

•

Where local soft spots exist, remove all unstable material and replace with compacted select material.

•

Where general poor foundation conditions exist, over excavate unsuitable foundation material and replace with compacted select material. If necessary widen the trench to create a raft effect to spread the load to acceptable levels.

•

Geotextiles may be necessary to maintain the stability of constructed foundation outlined above. The geotextile is designed to stop the foundation and bedding material from migrating into the trench base or sides.

•

Construction loads are often associated with pipe damage. Excessive loads will cause damage to the pipe, whilst some loads may cause damage to the foundations that provide uniform support if the foundation has a low bearing capacity.

•

Construction of a uniform bed zone in accordance with the Standard paying particular attention to the uniformity of the contact zone between pipe and bed zone.

•

Minimise the amount of compactive effort required in placing the haunch and side fill select material by ensuring grading compliance with AS/NZS 3725 (or consider the use of CLSM)

•

Select materials for the bed, haunch and side zones that compact to the required levels with the minimum effort. The Standard AS/NZS3725 provides excellent guidance on suitable material, which ensures ease of compaction (The use of CLSM may present the best option). The use of inappropriate materials, requiring high compactive efforts, may result in foundation heave or displacement destroying the bed uniformity.

CANBERRA BUILDING NEWS EDITION 1 - 2012

Setting the standard in concrete pipe installation

The above considerations are applicable to all concrete pipe installations, but are particularly relevant to small diameter pipeline construction, especially under roads where road construction standards require very high compaction standards. The use of other material types under these conditions will not provide long term stability due to ground movement and subsequent joint displacement. The only choice is steel reinforced concrete pipe, placed using appropriate installation techniques for the ground conditions, expected construction loads, and long term loading requirements for the job.

Picture 2

Picture 3

Pic 1: Preparation of uniform bedding support – this is critical for long term stability. Pic 2: The right level of compaction is needed in the critical zones, but be careful not to over compact. Pic 3: Concrete pipe cracked circumferentially due to beam action. Note the loose, wet, gravel used as select fill.

THE

BOTTOM LINE For the first ‘Bottom Line’ for 2012 we asked Archie Tsirimokos from Meyer Vandenberg about the benefits of Business Succession Planning. Archie is Meyer Vandenberg’s Managing Partner and is recognised as one of Canberra’s most experienced commercial lawyers. He is responsible for ensuring the provision of consistently high quality advice throughout the practice, and has broad-ranging legal expertise. Archie is an expert in commercial law, property development and building and construction law. He has been involved in the negotiation and delivery of numerous complex commercial projects and has extensive experience appearing as counsel in the ACT Supreme Court and the Federal Court of Australia. Named 2011’s ‘Professional of the Year’ at the Master Builders and Boral Excellence in Building awards, Archie understands matters.

From your experience, how well prepared are people who have built and grown their own businesses to move into retirement and at the same time maximising the return on something they have developed over a life time of hard work? From my experience most people are not prepared. In the majority of cases people assume that their children will want to take over the family business or that there will be a third party purchaser who is ready and willing to purchase the business for the price the business owner has in mind. Not being prepared and not having a plan will result in the business owner exiting the business without maximising their return on investment and all of those years of hard work that have been poured into the business. Many people find themselves exiting their business accepting whatever offer they can get, leaving them extremely disappointed.

In thinking about selling a business, how far ahead do you think you need to plan? When establishing any business the first question that needs to be addressed is “what is my exit strategy?” Ideally, once an exit strategy has been identified you will need to have a plan and the documentation to make it happen. At the very least, as a business owner you should be looking a few years ahead to allow you to get your financial and accounting relationships in order. You will definitely need financial, accounting and legal advice and it may be best to 42

implement the plan over a few years, in order to minimise any tax liabilities. The plan should be to make the business as “saleable” as possible.

Is succession planning in business absolutely critical for everyone and if not, under what circumstances would they need to think less about it? Yes, it is critical. Again, when entering into a business the first issues that needs to be address is “what is our exit strategy?” Some people think that if the business is a family business, then you do not need to worry about succession issues because your children will take over. In a large number of cases, children do not want to take over the business. They want to pursue their own careers. Alternatively, which children will take over? If only one child is to take over the business, whilst others do not, you will need to consider how to distribute your personal estate if it is your intention that your children benefit equally. When there are business partners who are not family, how do you know if your business partner wants to be in partnership with your spouse or children if you were no longer in the business? Or that your spouse or children want to be in business with your partner? In these circumstances, the documentation which is required is a Buy / Sell Agreement which sets out the terms of what is to happen to the business if you wish to sell, if you die or if you are totally and permanently disabled.

What options are available to those seeking an exit from their business and does one stand out over another? Most business owners are familiar with the sale of a business. In this instance, you can sell your business to the world at large – a third party. Other options include: a management buy-out; an earn-out; listing company shares on the stock exchange, or leaving the business (or part) to your beneficiaries as part of your will. There is not one form of exit that stands out from the rest as each business is different and the circumstances affecting an exit will vary from business to business. Your advisor can help you choose the exit strategy that best suits your circumstances. Issues such as the size of the business and whether or not you have a buyer (being internal or external) will help to determine which strategy is best for you.

Canberra building newsNEWS edition 3 - 2011 CANBERRA BUILDING EDITION 1 - 2012

How do you make a sale and/or merger more attractive to a buyer? The people in your business are a large part of making the business what it is - and if they are happy and well trained this will add value to the business. Good systems are critical, business assets need to be clearly defined, intellectual property must be protected, and the business must be profitable. If your business has all the above attributes, the business will be more attractive to a prospective purchaser.

When our members are thinking about the Bottom Line for their business, what are the biggest mistakes people make in trying to exit from their business? Leaving things too late is the biggest and most common mistake people make. This leaves them unorganised and they tend to react to situations instead of being proactive and in control. Leaving things too late is likely to result in a less than satisfactory exit price as you, as the business owner, will eventually be desperate to exit the business and will accept whatever price you can receive. However, if you had been organised you would have had the time to plan the exit properly and would have exited at a time and for a price which is controlled by you, thus maximising your return on investment and making all of your hard work over the years worthwhile.

Multi-purpose training & Meeting facilities, tailored for youâ&#x20AC;Ś and near you!

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 DFO 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

Tony Gill

In the Picture

DIRECTOR, ROADS ACT RECEIVES THE PUBLIC SERVICE MEDAL

People we’re watching today.

Ross Barrett RECEIVES OAM Ross was awarded the Medal of the Order of Australia for service to the ACT building and construction industry, particularly his roles as president of the ACT Branch of the Master Builders Association and the ACT division of Regional Development Australia. Ross has had a distinguished career in Canberra building and construction and was integral to the manner in which our industry responded to some of the major policy changes of the past decade. Among those challenges had been the Canberra bushfires disaster and advising on how members handled the fall-out from the Global Financial Crisis. Ross is also the president of the National Civil Contractors Federation and as the former managing director of Woden Contractors, he has played a significant role in broader community affairs in Canberra.

John Nikolic

SENIOR ADVISOR TO DIRECTOR IR

Master Builders has expanded its industrial relations department with the addition of a new industrial relations advisor – John Nikolić. John began working with Mike Baldwin, the Director of Industrial Relations at Master Builders, from early February 2012. John has moved across from Master Buiders’ national office, where he worked as an employment lawyer and policy analyst in industrial relations. John has been heavily involved in award modernisation and the drafting of various Master Builders publications, such as the Modern Award Manual and the Human 44 Resources Manual.

Col Alexander CHAIR, CHC AFFORDABLE HOUSING

Col took over as Chair of CHC Affordable Housing in late 2011, adding this position to his busy schedule that includes his responsibilities as Chief Executive Officer of CIC Australia, Chairman of the ACT MBA Fidelity Fund, Board member of the ACT Property Council and a Council member of the Canberra Business Council.

Kate Lundy

SENATOR RECEIVES MINISTERIAL PORTFOLIO

Kate left college to enter the workforce as a labourer in the building and construction industry. Her first job was removing asbestos from buildings. This established Kate’s continuing concern for workplace health and safety. Kate’s political awareness grew on the job and became a workplace delegate for the Building Workers Industrial Union. In 1986, Kate joined the union as a full-time organiser, working extensively in occupational health and safety, sustainable industry development and later, communications and information technology. In 1987, Kate was elected Vice-President of the ACT Branch of the BWIU. In 1996, aged 28, Lundy became the youngest woman from the Australian Labor Party to be elected to the federal parliament. Earlier this month the Prime Minister announced a Ministerial portfolio for Senator Lundy. Her official title is now: Minister for Sport; Minister for Multicultural Affairs; Minister Assisting for Industry and Innovation; Senator for the Australian Capital Territory.

The honour was for outstanding public service to road safety within the Australian Capital Territory. As the Director of Roads ACT since 2001, Mr Gill has ensured that the roads, bridges, footpaths and cycleways within the Australian Capital Territory are amongst the safest in Australia. Mr Gill has led innovation in different technical treatments of roads and cycleways, and has delivered a strategic approach to asset management that represents best practice.

Peter Murray EXECUTIVE DIRECTOR, SHARED SERVICES PROCUREMENT

Peter Murray is the Executive Director, Shared Services Procurement. Peter is responsible for the delivery of whole-ofgovernment procurement functions for the ACT Government, including the delivery of infrastructure and major capital works. Prior to joining Shared Services Procurement, Peter Murray spent four years as an Associate Director in the Infrastructure Advisory practice of Ernst & Young. In this role Peter provided commercial and financial advice regarding major infrastructure projects to a range of predominantly government clients. Peter also has extensive knowledge in the management of complex Public-Private Partnership (PPP) contractual relationships from his role within the NSW Roads and Traffic Authority (RTA). In this role he managed a series of PPP motorway transactions for the RTA including refinancings, widenings, and disposals and conducted feasibility studies for new motorway projects.

00347c

Offering

peace of mind

for building industry

professionals Austbrokers Canberra offer exceptional products and services in all areas of insurance, particularly specialising in: Construction and building industry insurance Trade package insurance Public and Products Liability Professional Indemnity Workers Compensation Business Package Insurance Income Protection Life Insurance and superannuation: these products are provided by the related entity Austbrokers Financial Solutions (SYD) Pty Ltd a Corporate Authorised Representative of Millennium3 Financial Services Pty Ltd ABN 61 094 529 987 AFS Licence 244252

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Direct +61 2 6280 5477 | Fax +61 2 6280 7561 Cnr Lyell & Newcastle Streets Fyshwick ACT 2609 PO Box 727, FYSHWICK ACT 2609 Email christine.miliano@abcbr.com.au | paul.lawton@abcbr.com.au | www.abcbr.com.au Austbrokers Canberra Pty Ltd is a Corporate Authorised Representative of Austbrokers Sydney Pty Ltd AFS Licence 244244

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.

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

Tuesday 15 November Sponsored by Colliers International

Ross Barrett Kate Lundy Paul Powderly

President, Master Builders Association of the ACT Senator for the ACT State Chief Executive, Colliers International

Tuesday 22 November Sponsored by Colliers International

Shane Radnell Andrew Barr Ross Barrett

General Manager - Residential Land Marketing, Colliers International Deputy Chief Minister of the ACT President, Master Builders Association of the ACT

Thursday 8 December Sponsored by Balmain Commercial

Ross Barrett David Dawes David Kimmorley

President, Master Builders Association of the ACT Director-General, Economic Development Directorate Partner, Balmain Commercial Property Finance

Monday 13 February Sponsored by Manteena

Simon Butt Jim Watterson Ross Barrett

Chief Executive Officer, Manteena Director-General, ACT Education and Training Development President, Master Builders Association of the ACT

Thursday 23 February Sponsored by Brown Consulting

Ross Barrett Gary Byles Max Bomben

President, Master Builders Association of the ACT Director-General, Territory and Municipal Services Directorate Managing Director, Brown Consulting

Tharwa Sands

Tuesday 28 February Sponsored by CBRE

Ross Barrett David Papps Andrew Stewart

President, Master Builders Association of the ACT Director-General, Environment and Sustainable Development Directorate Managing Director Sales and Leasing, CBRE

Your local supplier of Red Granite to Canberra, Sydney and the Southern Highlands.

www.tharwasands.com.au

Tharwa Sands has a longstanding commitment to the Canberra region with strong ties to over 50 loyal customers. Customers include concrete companies, landscaping yards, builders and civil engineers, with products being used by most of the major institutions such as Parliament House, the National Library, National Museum of Australia, National Zoo and Aquarium, the Canberra Airport and many more.

Tel: 6294 3500 I Fax: 6294 3600 info@tharwasand.com.au 46

CANBERRA BUILDING NEWS EDITION 1 - 2012

Building Better Communities

Village Building Company is one of the leaders in providing affordable housing for the people of the ACT with a strong focus on developing sustainable communities.

Visit our Display Home this weekend Display homes: 95 Macfarlane Burnett Ave, Macgregor 2/7 Ian Nicol Street, Watson

(Artist Impression)

Nexus, Franklin

Sales Offices: Flemington Rd, Franklin Horse Park Dr, Ngunnawal

Open: 11.30am â&#x20AC;&#x201C; 3.30pm weekends, mid-week by appointment

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Broadview, Ngunnawal

Brindabella, Macgregor

The Fair, Watson

villagebuilding.com.au 48

6242 5999