Royal Commission likely to hold inquiry into ACT CFMEU John Nikolic, Director Industrial Relations and In-house Leagal Counsel
EDITION 6-2014 MASTER BUILDERS EXECUTIVE COUNCIL President – Valdis Luks Treasurer – Frank Porreca Chair, Commercial Builders’ Sector Council – Peter Naylor Chair, Suppliers and Subcontractors’ Sector Council – Grace Ferreira Chair, Residential Builders’ Sector Council – Frank Porreca Chair, Civil Contractors’ Sector Council – Andy Crompton Chair, Professional Consultants’ Sector Council – Hans Sommer MASTER BUILDERS MANAGEMENT TEAM Executive Director – John Miller Deputy Executive Director – Jerry Howard Director Industrial Relations & In-house Legal Counsel – John Nikolić Senior Management Accountant – Louise MacCallum Senior Manager - Marketing & Membership Services – David Leitch Work Health and Safety Advisor – Philip Edwards MBA GROUP TRAINING General Manager – Wendy Tengstrom
The Royal Commission into Trade Union Corruption and Governance has been extended by 12 months, taking it up to December 2015. The extension will make the Commission the longest of its kind – 20 months – even longer than the 18 month Cole Royal Commission. The extension followed a letter from Royal Commissioner Dyson Heydon to Attorney General George Brandis, in which the Commissioner said the following about the ‘inquiry thus far’: ‘[it] has revealed evidence of criminal conduct which includes widespread instances of physical and verbal violence, cartel conduct, secondary boycotts, contempt of court and other institutional orders, and the encouragement of others to commit these contempts. Some officials appear to regard their unions as having immunity not only from the norms and sanctions of the Australian legal system, but also from any social or community standard shared by other Australians. There are dimensions of criminal conduct revealed by the evidence thus far suggesting that a more thorough examination of the matters... is desirable’. The Government also agreed to the Commissioner’s request to broaden his Terms of Reference to include ‘any criminal or otherwise unlawful act or omission undertaken for the purpose of concealing conduct’. This will better protect witnesses.
Master Builders Association of the ACT 1 Iron Knob St, Fyshwick ACT 2609 PO Box 1211, Fyshwick ACT 2609 Tel: (02) 6247 2099 Fax: (02) 6249 8374 Email: canberra@mba.org.au Web: www.mba.org.au
Importantly, the Royal Commission is likely to hold an inquiry into the conduct of the ACT branch of the CFMEU in 2015, following an evidence-based submission by Master Builders ACT about alleged lawlessness within the union. In order to address members’ apparent fears of reprisals yet still provide evidence to
the Commission, Master Builders designed an anonymous member survey, asking members simple questions about their experiences with the ACT branch of the CFMEU. That survey has now been run on a national basis, following a request from the Commission. Master Builders’ Director of Industrial Relations has also made a witness statement to the Commission. The CFMEU’s purported aims are improved terms and conditions of employment and safety standards. What Master Builders cannot understand is why that would lead to reports of physical and verbal threats against members and of disruption of their livelihoods, as revealed in the survey. Master Builders is committed to members’ basic rights of freedom to work, freedom from fear and freedom of speech and hopes that the Royal Commission’s final report will provide the platform for lasting change (an interim report is expected in December 2014, with a final report in December 2015). However, if change is to be secured, members will need to realise that their collective voice is more powerful than the collective silence allegedly imposed by the CFMEU – they too will need to speak publicly about the abuses they apparently endure. Despite four Royal Commissions in 30 years, the exercise of members’ simply speaking about their experiences has never been tried before. Members now have a real opportunity to exercise their freedom of speech and thereby win back other basic freedoms. Master Builders will be speaking to members over the coming months and encouraging them to follow its lead in trying something new – providing collective evidence to the Royal Commission.
THE
HAMMER hits the nail on the head
Worker's Compensation To believe or not to believe – that is the question. With apologies to Shakespeare, in the Hamlet of Canberra the world is kind of different. Just ask the good folk in the building and construction industry. They have to match the rest of the country when the rest of the country is doing something different. The latest Workers’ Compensation data tells the industry they’re going backwards on safety. They ask, “Whether ‘tis Nobler in the mind to suffer”. Definitely not! Why would anyone give into a system that is weighted so heavily in favour of those seeking to take a massive free financial ride at the expense of employers and by extension, the community? Serious injury rates have risen. What does that mean in the most fertile breeding barn for litigation in the land? What it means is a lot of money available to be shared with little or no interest in the downstream effects. We get endless stories of heartbreak justifying ridiculous payouts in the name of Workers’ Compensation. Let’s call the current scheme for what it is – it is a dog! It rewards mischief, it harbours laziness, it invents stories, it lines pockets and worse still, it consigns the genuine to unnecessary speculation. It equips the freeloaders with The Slings and Arrows of outrageous fortune. The building and construction industry has put up its hand to accept the responsibility it has to ensure people are safe. It has a moral and financial reason to accept that responsibility. The sad reality is that too many in industry just don’t believe the numbers any more. They have lost faith in a system that pushes them into a corner time and again and then to be vilified by others with a vested interest to wreak havoc based substantially on fiction.
Does the industry sit back Or take up Arms against a Sea of troubles? There is no room for complacency when dealing with safety. The great risk is that the mood created by the damning data and the associated stories will promote complacency. That risk is created in areas where real help and diligence is needed. It’s time to look behind the data and read it for what it is. There are far too many generalisations being made about industry performance without thorough analysis. On this score alone industry must take up arms. Nobody else will do this. When business and industry was in need of a friend a few years ago, they found themselves friendless when the ACT Government attempted to make changes to the current system. To paraphrase a recent quote by former Prime Minister, Paul Keating, never stand in the way of good policy and political expediency, you will get run over every time. Self-interest intervened and an opportunity was lost. This is a sad fact of life; we see it every day at enormous cost to the community. All we are left with is The Heart-ache, and the thousand Natural shocks. Far from giving up, many in the industry have demonstrated a commitment and willingness to stay engaged and some positive initiatives are emerging to overcome the difficulties Which puzzles the brain, and doth confound the sense. History is littered with moments where we go back to the future. One can only hope that at some stage the industry and broader community see some signs of acknowledging that the current Workers’ Compensation system is fatally flawed and changes are made before too much punishment is exacted and business, industry and the wider community is hammered.
LA
ND
RE
NT
SC
HE
ME
The New Land Rent Scheme in Moncrieff. 5 things builders and agents need to know to succeed Meyer Vanderberg Lawyers are acting for the Land Development Agency (‘LDA’) in relation to its sale of single residential blocks in the ACT’s new suburb, Moncrieff. If you are marketing blocks in Moncrieff or are interested in the upcoming public ballot in November 2014 you will need to be familiar with the “New Land Rent Scheme”. What are the 5 things you need to know? 1. Applies to contracts entered into after 1 October 2013: The New Land Rent Scheme applies to single residential blocks of land where the buyer has entered into a contract with the LDA after 1 October 2013 (i.e. Moncrieff land). There is no change to the Land Rent Scheme for buyers that entered into contracts prior to 1 October 2013 - the changes outlined below do not apply to land acquired under those contracts (i.e. Coombs, Wright and Bonner land). 2. Discount rate available: The New Land Rent Scheme is no longer available to everyone and is now targeted at those potential participants who will benefit most - low to moderate income buyers. They will pay ‘discount’ land rent of 2% of the unimproved value of the land per annum. 3. Eligibility Criteria: Those buyers who are eligible are those which satisfy the following criteria: (a)The buyers combined household income is less than the ‘Threshold Income Amount’ which currently ranges depending on the number of dependents from $160,000 to $176,650 per annum; (b)The buyers have no equitable or legal interest in land or property, and (c)The buyers have an intention to live in the dwelling once completed. The LDA will not grant a Land Rent Lease to a buyer unless the ACT Revenue Office confirms that the buyer meets the eligibility criteria. This eligibility will be assessed approximately 6 weeks prior to settlement with the LDA. The LDA contract is now conditional upon the ACT Revenue Office determining that the buyer meets the eligibility criteria mentioned above. If the buyer does not meet the eligibility criteria prior to settlement, then the LDA or the buyer can rescind or decide to purchase a Nominal Crown Lease. 4. Subsequent ineligibility: Once settlement has occurred, the participant must remain eligible for the discount rate in order to remain in the scheme. If they remain ineligible for 2 consecutive years, they are obligated to transition out of the scheme within a further 2 years by either converting the Land Rent Lease to a Nominal Crown Lease (by paying the unimproved value of the land to the ACT Government) or
transferring the Land Rent Lease to another eligible buyer. It remains to be seen how the ACT Government will enforce this. 5. LDA requirements: LDA requires a number of documents from buyers prior to exchange and settlement including a statutory declaration stating that the buyer has received legal advice on the contract, a financial advice certificate from a qualified financial advisor or practising accountant on the contract and a completed application from buyers acknowledging their compliance with the eligibility criteria. The requirements differ depending on whether the land was purchased in the Builders Ballot in June this year, or the upcoming Public Ballot.
What are the implications for you? When purchasing and marketing blocks in Moncrieff you need to be familiar with the new scheme and the LDA’s contracts and processes that have been amended to take into account the changes. When dealing with Land Rent generally, builders and agents also need to be aware of whether they are marketing land under the “New Land Rent Scheme” or the “Old Land Rent Scheme” as different conditions apply. The Certificate of Title for blocks under the “New Land Rent Scheme” may note a restriction on transfer.
For more information contact the Property and Projects Team: Stephanie Lynch, Partner, Property (02) 6279 4398 Stephanie.Lynch@mvlawyers.com.au Kimberley Baillie, Senior Lawyer, Property (02) 6279 4374 Kimberley.Baillie@mvlawyers.com.au
Understanding risks and why failures in construction continue to haunt us. Jerry Howard, Deputy Executive Director
Eight bridges have collapsed around China since 2011. Here, government investigators examine a recently built entrance ramp that collapsed in the northeastern city of Harbin, killing three people. (source - NPR.org)
I was a member of a group of individuals who did a presentation at the University of Canberra Leadership in Construction Safety Seminar on 15th October. While the seminar was primarily devoted to safety issues, there was a great deal of focus on construction failures and building defects. There has been a number of large-scale construction failures in Canberra. Some of these have been associated with projects under construction and some of these major problems have manifested sometime after the projects are completed. Failure of any scale is a nightmare that haunts the construction industry. The financial devastation and the lost reputations resulting from construction failures have troubled every builder, architect, engineer, contractor or owner at some time. The quantity and rate of failures that we are currently dealing with guarantees that they will continue to occur unless we take some dramatic action. The question that has preoccupied me personally for several years is “Why the repeated failures?” and “Why don’t we learn from previous failures or mistakes?” Failures in construction do not discriminate. I see failures from the highest calibre of construction companies and engineering firms. There is no way to understand failures without full comprehension of the failures in general and there is no way to understand construction failures without understanding construction. In some of the investigations I have undertaken over the years, I have discovered that those who constructed the defective work really had no idea or understanding of what they had built and what the expectations were for what they had constructed.
At the seminar I raised, in my presentation, the strong point of how transparent we are, as an industry, when construction failures occur. We generally receive a lot of media attention and we cannot quickly cover our mistakes as some other professions can do in allaying the blame to other parties. I also stated that individuals will, from time to time, make errors. Therefore, peer review and seeking expert opinion is crucial when you have any doubts on your own expertise or capacity to make a decision. Failure is a human act and is defined as “omission of occurrence or performance, lack of success, non-performance, insufficiency, loss of strength and cessation of proper functioning or performance”. The four essential elements of a construction project are: ••
Concept;
••
Design;
••
Performance; and
••
Use
For a successful project, these elements must include: 1. Knowledge (training and education); 2. Competence (experience); and 3. Care (control)
Fixing of windows and doors - Some issues to consider Over the years the size of window units and door units has increased dramatically, however, there have been many instances where the fixing requirements required to resist the additional wind forces have not been totally understood by the builders. The Australian Window Association have now producedAND an excellent guide to the fixing of FIXING OF WINDOWS DOORS windows and this is available on their website www.awa.org.au.
by Jerry Howard - Deputy Executive Director
ISSUES TO BE CONSIDERED WHEN PAINTING IN COLDER CONDITIONS
SOME CRITICAL ISSUES TO CONSIDER
The tables within this guideindetermine the number of the nailsfixing or screws Recently I attended a seminar Sydney where I discussed of windows representatives from Australian requiredwith for appropriate fixing ofthe windows andWindow doors.Association. We have
Recently, one of our members contacted me regarding issues that he had experienced with the paint finish, especially with joints in plaster being clearly visible after paint was applied and also issues with gloss paint on doors being very patchy. The builder advised me that this work was undertaken during winter where daytime temperatures were well below 9ºC inside the building and, in some instances, around 0ºC for most of the morning. The paint, in this instance, was a water-based low voc paint specified by the clients. I can understand the time constraints that builders work under, however, if you don’t follow the paint manufacturer’s specifications, then there is no recourse for you.
included two tables for typical ACT region applications in N1
Over the years the size of window units and door units has increased dramatically, however, there have been many instances where the and N2. In example Table to 1 we have number of fixings fixing requirements required resist the included additionalthe wind forces have not been totallydiameter understood by the Australian Window using 1.8mm nails andbuilders. also theThe worked example from Association now2produced excellentthe guide to the fixing of for the guide. have In Table we havean included fixing requirements windows and this is available on their website www.awa.org.au.
N2 using 2.5mm diameter nails. The assumption has been made
thattables thesewithin fixings willguide be into radiatathe pine species group The this determine number of nails or JD4. screws required for appropriate fixing of windows and doors. We have included two tables for typical ACT region applications in N1 and In example we screws have included the number of fixings TheN2. number of Table nails1 or required are dependent on How This Guide from using 1.8mm diameter nails and alsoTo theUse worked example the: the guide. In Table 2 we have included the fixing requirements for N2 2.5mm diameter nails. The assumption has been made •• using Wind Classification (as provided by AS4055) that fixings be into radiata pine speciesofgroup Thethese tables withinwill is guide determine the number nails JD4. or screws needed for
To avoid potential problems associated with cold weather painting, especially in our climate zone, I have attached a link to information from the paint manufacturer and also contact to the Australian Paint Manufacturers Federation (APMF). At optimum conditions of 25ºC and 50% relative humidity, water
If any of these elements lacking, based broadthree wall paints haveare a drying timeno ofcompensation two hours. At lower temperature or increased humidity, the drying time ofawater-based measures of excellence in the other two will prevent failure. paints is extended. Substrates of varying absorbency and varying Failures occur far more frequently than we realise or admit. film builds can result in a colour difference over joints and on Of these only a few might into the media, but has cut in failures areas. The Australian Paintget Manufacturers Federation at least one will sheet surelyexplaining receive dramatic attention the to these issued a fact some of the issues from in regard problems. This can be accessed from http://www.apmf.asn.au/ media which may cause irreparable damage to the entity.
In closing, I refer to one of the presentations on the day that made reference to inadequate fixing of windows in a building Increased ventilation and temperature will accelerate drying of paint film and avoid this problem. The occurrence of this effect thatthe could have, potentially, serious consequences and will beloss more ontwo sitesoccupants. where there The has been extensive possible ofprevalent life for the windows in painting, as the application of the paint over large areas increases this humidity particulardramatically project were fixed using small gauge finishing and thus extends drying time further. nails. The residence had been occupied for some time and TO AVOID resulting highTHIS windPROBLEM gusts blew in the windows and the resulting forces also blew the roof off. Fortunately the occupants • Ensure building/house is well ventilated escaped The • Blowinjury. heaters willindividual assist withwho the fixed those windows would have never contemplated such a disaster, so the key curing time • Check a few days seethose windows question is the “Didsite thewithin carpenter who to fixed if the issue been understand thehas risk andresolved the consequences of his actions?” SOLUTION
The relaying of this case study has, again, reminded me Severe occurrences over filled areas can be corrected by applying a of the importance of properly fixing windows, given that spirit based stain sealer or are a quick-dry the windows and door units getting (oil-based larger andundercoat) larger, to the affected areas and finishing with another coat of topcoat. For less yet proper fixing practices are being severe problems, one coat ofnot topcoat cutimplemented and rolled willtoovercome cope with the larger sizedthere units. I am including in this the problem, provided is adequate ventilation. Best results will Insight, be achieved the temperature is >10ºC for the drying period. Onsite onceif again, the details for adequately fixing windows to comply with the National Construction Code.
Window Height
Window Height Window Height
• Cutting in over sprayed ceiling paints • Cutting in once instead of twice
•
Window 600 Height 900
1200
1500
1800
2100
2400
2700
3000
3300
3600
Fixings would normally be4 evenly spaced, but some specific product Fixings would normally spaced, specific product 600 4 4 4 be evenly 6 6 but some 6 8 8 8 10 Fixings would normally be conditions evenly spaced but some specific product types types and/or wind loading require types wind loading may8may require 900 and/or 4 4 6 6 conditions 8 10 specialised 10specialised 12 12 14 and/or wind loading conditions may require specialised placement. Refer to 1200 4 6 toto 6 your 8system 10 supplier 10if you 14 unsure. 16 16 18 placement. Refer your system supplier placement. Refer if12are youunsure. are you system supplier if8 you are unsure. 1500 4 6 10 12 1800 6 Example
14
16
16
18
20
22
8
10
12
14
16
18
20
22
24
26
2100
6
8
10
14
16
18
20
24
26
28
30
2400
6
10
12
16
18
20
24
26
30
32
34
2700
8
10
14
16
20
24
26
30
32
600
900
1200
1500
1800
2100
2400
2700
3000
3300
3600
4
4
4
4
4
4
4
6
6
6
6
ULS Wind Pressure: 700 Pa, Nail Diameter: 1.8 mm
600
Window Width
N1
ULS Wind Pressure: 1000 Pa, Nail Diameter: 2.1 mm 900 4 4 4 4 6 6 6 8 da 1200 4 4 4 6 6 8 8 10 Window Width 1500
Table 1 36 38
8
10
10
10
12
12
1800 600 2100
4 4600 44
4 6900 64
6 61200 84
8 81500 4 10
8 1800 10 4 12
10 2100 12 4 14
10 2400 12 4 14
12 2700 14 6 16
14 3000 16 6 18
14 3300 18 620
16 3600 18 622
900 2400 1200 2700 1500
44 64 4
64 84 4
84 4 10 6
4 10 6 12 8
6 12 6 14 8
6 14 8 16 10
6 16 8 18 10
8 18 10 20
8 20 10 24
822 12 26
10 24 12 28
12
14
14
16
2400
4
6
8
10
12
14
16
18
20
22
24
10
12
14
16
18
20
22
24
28
For a window with the size of 2100mm (h) x 1500mm (w) to be fixed into a home built in with a N1 Wind 1800 4 6 8 Pressure 10 of 700Pa) 12 16 10 Nails 16 are to 18be Classification zone6 (with a ULS Wind and12using a 14 1.8mm nail: 2100to fix 4this window. 6 8 10 12 12 14 16 18 20 22 used
Embedment Depth 2700 6 8
Embedment Depth into timber and masonry ULS Wind Pressure:p1000 Pa, Nail Diameter: 2.5 mm N2 ≥ 10D p = penetration da D = diameter of nail Window Width 600 Example:
Window Height
The following can be contributing to unsatisfactory Anybody who is concerned about their factors reputation wants to paintonce finishes: prevent, and for all, all occurrences of failures. The simple fact stillconditions remains, however, that there is no way • Weather • Plaster notentirely fully cured prior to painting failures can be eliminated. However, a good start Plaster being applied before the basedescribed coat or first coat is fully is to•implement some of the principles above cured and,• in complex projects, undertake a serious design Paint not fully cured before applying the second coat and buildability communicate the message clearly • Lack ofreview airflowand in the house • Lackwho of heating in colder conditions to those are responsible for undertaking the works.
•appropriate • ULS Wind fixingPressure of windows and doors.
Nail Capacity - N2 on the: The number of nails or screws required are dependent • Diameter Nail Screw Size ••The Wind Classification (as provided by AS4055) number of of nails or or screws needed are dependent on the: • •ULSWind WindClassification Pressure (as provided by AS4055) •• Window Width • •Diameter of Nail or Screw SizeNail Diameter: 1.8 mm ULS Wind Pressure ULS Wind Pressure: 1000 Pa, •••Window Width ofHeight Nail or Screw Size •da Diameter Window Window Width • •Window Height Window Width
10
Table 2
1500nail,1800 2100 2400 2700 3000 25mm 3300 3600 - 900 Using 1200 a 2.5mm penetration should be at least 4 4 4 4 the diameter, 4 4 in this 4 case 6 - 4Using 4a 6 Gauge screw, determine 4 4 4 4 6 6 6 8 2.8mm, penetration should4 be at 6least 28mm
600
4
900
4
1200
4
4
4
4
6
6
6
8
8
8
10
1500
4
4
4
6
6
6
8
8
10
10
12
1800
4
4
6
6
8
8
10
10
12
12
14
6
8
10
10
12
12
14
16
8
10
10
12
14
14
16
18
8
10
12
14
14
16
18
20
2100 4 4 6 Australian Window Association 2400 4 6 6 2700
14
or screw
4
6
8
Note: Window and door units must be installed level, square Australian Window Association and plumb. They must be wedged / packed at reveals as per the manufacturers instructions. The nail penetration into the timber stud must be 10x the diameter of the nail.
Innovation And Competitiveness Plan - A Boost For Confidence And Jobs
Investment In New Housing To Increase Supply “The fall in the latest official housing finance data should allay fears of an unsustainable housing boom,” Peter Jones Chief Economist of Master Builders Australia said. Data released by the ABS shows the total number of owner occupied housing finance commitments was down 0.9 per cent seasonally adjusted in August. “Looking beyond the monthly volatility there are signs that there is a supply response to low interest rates beginning to emerge,” - Peter Jones
The Industry Innovation and Competitiveness Agenda was announced on 14 October 2014.
“The Government’s Innovation and Competitiveness Agenda will be positively received and help reboot business confidence in the building and construction industry,” Wilhelm Harnisch CEO of Master Builders Australia said today. “The economy is benefitting from strong economic activity in the residential sector and a rebound in commercial building. The reforms outlined in the Innovation and Competitiveness Agenda are the necessary underpinnings for lifting productivity. The gains to economic and jobs growth will come from a better skilled labour force, lower production costs, more and better infrastructure and cuts in red tape,” he said. "Reforms that promote better math skills in schools will help ensure young people commence apprenticeships with the necessary educational foundation to complete them," - Wilhelm Harnisch
“The implementation of reforms to the 457 visa system based on recommendations of the Independent Review into the integrity of the 457 visa system will add to the flexibility for the industry by streamlining access to skilled foreign workers when local Australian tradespeople are not available, this will add to investment and other local jobs,” he said. “ACTU and CFMEU attacks on legitimate 457 visa workers and sponsoring employers have to stop. Union claims that Australian jobs are threatened by the reforms are erroneous. It is a union myth that skilled foreign tradespeople are taking Australian’s jobs and that employers in the building industry have any incentive to employ them before unemployed tradespeople,” Wilhelm Harnisch said. “Master Builders welcomes the Innovation and Competitiveness Agenda as an important component of the Government’s Economic Action Strategy. The strategy now needs to be complemented by other reforms in taxation and industrial relations,” Wilhelm Harnisch said.
“The imbalance in investor finance commitments remains but the good news is that investor loans for new housing is now growing strongly,” he said. “Investor housing commitments for construction of new dwellings rose strongly to be up by nearly 40 per cent in the three months to August compared to the same period last year,” Peter Jones said. “Over the year, owner-occupier commitments for construction of dwellings were up by 12.6 per cent and up 0.3 per cent for purchase of new dwellings. Builders will be encouraged by the combined rise of 8.3 per cent finance commitments for ‘new’ dwellings,” he said. “The number of loans taken out by first home buyers hit a disappointing new record low in August, accounting for only 11.8 per cent of all dwellings financed,” Peter Jones said. “By state, owner occupied commitments for construction of dwellings grew solidly in New South Wales, Victoria and Queensland over the year to August,” he said. “Finance for construction by owner occupiers grew strongly in Tasmania, fell in South Australia and shows signs of plateauing at a high level in Western Australia,” Peter Jones said.
12.5% INCREASE IN OWNER OCCUPIER COMMMITTMENTS FOR DWELLINGS OVER THE PAST YEAR Peter Jones, Master Builders Australia
Builders Confident Of Continued Residential Upturn
Development application notifications sent straight to you! New DA Finder App – development application information anytime, anywhere
With smartphones and tablets rapidly growing in popularity, the ACT Government has developed the DA Finder App to help more Canberrans access public notifications for development applications in a manner that suits their busy life styles and business practices.
Australia is on track to top the record for annual starts sometime in 2015. - Master Builders Australia
Master Builders is confident that the recovery in residential building is on track following the release of building activity data by the ABS recently. “The latest figures confirm a solid ‘first phase’ upswing in dwelling commencements took root in 2013/14, with over 180,000 starts nationally,” “In line with Master Builders’ expectations, Australia is on track to top the record for annual starts sometime in 2015,” “In seasonally adjusted terms, there was a 7 per cent fall in dwelling commencements in the June quarter. This is likely to reflect timing issues affecting the flow through from approvals into starts,” “The longer lead time between approvals and commencements for multi-unit developments appears to affecting New South Wales, in particular, where the translation from approvals into starts has been at a very low 90 per cent in the recent past. Some degree of ‘catch-up’ is expected to flow through into further strength in dwelling commencements over the next 12 months,” Key points: ••
In seasonally adjusted terms, the number of dwellings commenced fell by 6.9 per cent in the June quarter, but rose by 2 per cent in trend terms.
••
In original terms, starts were up 11 per cent on the June quarter 2013 and all states, bar the ACT, were up on last year’s June quarter figure.
••
The total number of dwelling starts for 2013/14 was 180,408 up 11.5 per cent on the previous year.
••
Other dwellings numbers at 76,400 for the year, is an all-time record.
••
House start numbers exceeded 100,000 for the first time in 3 years as detached houses begins to take over from units as the growth driver.
DA Finder App
Whether you’re a builder, property developer or just have a keen interest in what’s going on around you, the DA Finder App will you stay informed in a more convenient, time efficient way.
The new app puts all development application information at your fingertips on smartphones and tablets. You can search DAs by the locator pins or by typing the suburb or street. Use the tracker function to register one or more areas of interest across the ACT and the app will let you know when a DA has been notified in that area. We are also seeking to expand the DA Finder’s range to include Draft Variations to the Territory Plan. The information will continue to be published in the Canberra Times as well. The App is available free of charge for both Apple and Android smartphones and tablets and can be downloaded from your app store (search for DA Finder)
For more information: www.actpla.act.gov.au/ development_applications/da_finder_app
Flexible Duct Survey: All Samples 'Non-compliant'
A random survey of nine commercially available insulated flexible duct products in Australia has found all samples failed to comply with mandatory energy efficiency performance standards. The survey was conducted as part of an industry report titled A Survey of Thermal Performance of Flexible Duct, commissioned by the peak body Insulation Australasia (IA) Ltd and conducted by Dr. Cameron Chick from Acronem Consulting Australia.
Code of Australia (NCC, BCA), Energy Efficiency provisions, which necessitate that insulation provided on ductwork shall comply with the requirements of AS/NZS 4859.1 Materials for the Thermal Insulation of Buildings.
Insulated flexible ducts are used to channel conditioned air throughout buildings for heating or cooling purposes. Most flexible ducts consist of an inner metalised plastic tube, typically supported and strengthened by coiled wire, covered by a bulk insulation material and outer protective sheath. These ducts are commonly found in residential and commercial buildings, and their efficient performance is vital – space heating in homes involving flexible ducts accounts for 38% of all household energy consumption.
Due to the massive societal impacts of energy-wasting, noncompliant ducts, numerous governmental and regulatory bodies – including the Department of Climate Change – have shown an interest in the issue of non-compliant flexible ducts. The report also indicates an “expectation” that the ACCC (Australian Competition & Consumer Commission) will scrutinize the sector on behalf of consumers.
The report involved a scientific analysis of nine ‘like’ samples of insulated flexible duct products with claimed thermal efficiency ratings (R-values) of R1.0, which is the legislated national minimum requirement. Tests, conducted at CSIRO Infrastructure Technologies, Thermal Test laboratory, involved careful assessment of the outer sheath, polyester thermal insulation material, and the inner core (with metal wiring removed), using approved examination techniques. Results demonstrated an average R-value of just R0.763 (m2K/W) with a standard deviation of 0.10 (m2K/W), significantly below the claimed targets of R1.0. The best performing sample achieved R0.957 (m2K/W), the worst R0.625 (m2K/W). These uniformly poor results, according to the report, are disappointing and clearly contravene the regulatory requirements of the National Construction Code, Building
The report calls for tighter monitoring and policing of product compliance, as well as reforms to the way products are assessed, with a shift to ‘as installed’ performance assessment rather than the current process of assessing raw materials. IA Director Warrick Batt has welcomed the findings of the report, calling on all manufacturers and installers to be aware of the consequences of allowing non-compliant product to enter the market. “Whenever poor-quality or noncompliant product is used, the entire sector is tarnished. Low standards adopted by rogue operators diminish the credibility of reputable manufacturers, undermine price points and threaten ongoing research and product development.” Insulation Australasia Ltd www.insulationaustralasia.org
NAWIC Awards recognising outstanding achievements by women in construction The National Association of Women in Construction (NAWIC) recently held their ACT 2014 Awards for Excellence at University House, Australian National University. The National Association of Women in Construction (NAWIC) held its annual awards function at the ANU on Thursday 9 October, with the MBA's own Lorraine Brook receivin the Construction Support Woman of the Year Award. Six outstanding women were recognised for their contribution to the construction industry including the MBA’s Lorraine Brook (pictured with Roger Poels of Shaw Building) who won the Construction Support Woman of the Year 2014 award that celebrates the contributions of the women behind the Canberra region’s construction businesses. Lorraine began her career at the MBA in 1992 as assistant to the IR Director. For most of those years she was the go to person for any information regarding IR. She now is the Membership Services Manager and is the vital contact for the members requiring assistance. This category was open to all women who have worked in a supporting role within the construction industry. Areas of contribution include, but are not limited to, finance, payroll, contract administration, human resources, office management and general administration. NAWIC is a Not-For-Profit organisation formed in 1995 whose mission is to promote and improve the construction industry by the advancement of women within it. It provides a forum for its members to meet and exchange information, ideas and solutions to problems and offers individual members an opportunity to expand personal and business networks, maintain awareness of industry developments, improve skills and knowledge, and make a contribution to other women in the construction industry.
Award 1 2014 Shaw Building Group Construction Support Women of the Year Lorraine Brook - Master Builders ACT
Award 2 2014 Training Fund Authority Tradeswomen of the Year Brooke Foley - Design Craft
Award 3 2014 Lend Lease Professional Women of the Year Karen Porter – Solace Creations
Award 4 2014 ISIS Future Leader Suzie Blom - GHD
Award 4 Highly Commended - Future Leader Gabby McGuinness - Hindmarsh
Award 5 2014 Master Builders ACT Outstanding Achievement in Construction Alexandria Garlan
Award 6 2014 CPSISC Crystal Vision Jane Montgomery-Hribar - APCC
Non-performing glass. The ongoing saga Jerry Howard, Deputy Executive Director
Back in 2009 I wrote an editorial on non-conforming windows. I felt that it was opportune again to remind those professionals in the industry of the need to exercise due care when selecting, installing or certifying assemblies such as windows, glass and glazing. Recent press makes reference to glass replacement in several multi-storey buildings around Australia running into millions of dollars. The question will be “Who will pay for this non-conforming products when they fail?”
Complying with the BCA and AS2047 2014 – Windows and External Glazed Doors in Buildings:
The following assemblies, if located in an external wall of a building, are required to comply with AS2047 2014: ••
Windows;
••
Sliding and swinging glazed doors, including French and bi-fold doors;
••
Adjustable louvres;
There are three prime areas of responsibility identified in the process of specifying, supplying and installing windows to comply with these requirements:
••
Shopfronts; and
••
Window walls with one-piece framing elements
••
• Firstly, the wind classification or loading and, therefore, the appropriate window ratings applicable to the building, must be provided to the builder and certifier by the designer. This information must also be provided to the manufacturer when the windows are ordered;
The following are not covered by this Standard but should be checked with the NCC for compliance requirements:
• Secondly, the window manufacturer must be able to certify that the windows supplied will meet the specified performance. Such certification must be capable of being verified by test results, equally, assurance and expert evaluation as applicable; and
••
••
• And thirdly, the builder must ensure that the windows, as supplied, are labelled or certified to the specified ratings and that the windows are fixed in accordance with recognised good building practice and follow up the manufacturer's window installation instructions.
Question - Which windows need to be tested to AS2047 2014? Answer - The Building Code of Australia identifies which glazed assemblies need to comply with AS2047 2014 - Windows and External Glazed Doors in Buildings - Installation and which need to comply with AS1288 - Glass in Buildings - Installation.
••
Internal doors;
••
Revolving glazed doors
••
Fixed louvres;
••
Skylights and roof lights and windows in other than the vertical plane;
••
Windows in greenhouses and agricultural buildings;
••
Frameless sliding and swinging doors;
••
Windows constructed onsite and architectural oneoff windows, which are not design tested;
••
Second-hand windows, re-used windows or recycled windows; and
••
Heritage windows for heritage buildings, as defined by the relevant State or Territory authority.
Builders, please ensure that your windows and glazing comply with the NCC. It’s too late after installation and the cost implications for you to replace can be enormous.
Incorrect Use of Glass Only Values for Glazing Energy Performance Ratings The AWA has been made aware that last week three South Australian window companies advised energy raters to use Glass only U-values (UGLASS, UCOG, UG) and SHGC (SHGCGLASS, SHGCCOG, SHGCG) in the absence of immediately available window (glazing) results to carry out building performance ratings.
The AWA has been made aware that last week three South Australian window companies advised energy raters to use Glass only U-values (UGLASS, UCOG, UG) and SHGC (SHGCGLASS, SHGCCOG, SHGCG) in the absence of immediately available window (glazing) results to carry out building performance ratings. This advice contravenes the Australian Standard for Windows and Glazed Doors - AS 2047, the National Construction Code (NCC) and the Australian Consumer Law Act. There is a growing number of dispute resolution and court actions against architects, energy raters and window companies on the east coast and this will increase if incorrect results or products are supplied at a time when home and building owners are challenging the performance outcomes of their selections. This is not a single state or territory issue, it is national. The AWA we would like to advise all members and the industry in general that ONLY whole window system U-value’s (UWINDOW, UW) and SHGC’s (SHGCWINDOW, SHGCW) can be used. Under the NCC, within Building Code of Australia (BCA), energy efficiency provisions for Volume One, Section J2.4 Glazing and Volume Two, Section 3.12.2.1 External Glazing state that external glazing performance data must be determined in accordance with the guidelines of the Australian Fenestration Rating Council (AFRC). The BCA States: In Volume 1 J 2.4 (a) “The glazing in each storey, including any mezzanine, of a building must be assessed” And in Volume 2 3.12.2.1 (a) “The aggregate conductance of the glazing in each storey” 3.12.2.1 (b) “The aggregate solar heat gain of the glazing in each storey” The BCA goes further with Volume 1, A 1.1 and Volume 2, 1.1.1 defining Glazing as “a transparent or translucent element and its supporting frame located in the envelope, and includes a window other than a roof light.” The BCA also provides the following explanatory information in the Guides for Use:
“By referring to ' glazing elements', 3.12.2.1” and J2.4 “require Total System U-Values and Total System SHGCs to be assessed for the combined effect of glass and frames. The measurement of these Total System U-Values and Total System SHGCs is specified in the Technical Protocols and Procedures Manual for Energy Rating of Fenestration Products by the Australian Fenestration Rating Council (AFRC).” Energy ratings through AFRC accredited energy raters are the only acceptable performance results for use with the BCA Glazing Calculators (Volume 1 and 2), BASIX and NatHERS Software tools (AccuRate and FirstRate) AS 2047 states: 2.3.3 Window energy rating Calculation of the total system overall heat transfer coefficient (U-value), the total system solar heat gain coefficient (SHGC) and the visible transmittance (Tvis) shall be required for the total system of the window assembly. The Australian Consumer Law states: A major failure in supply of goods or services occurs when goods are significantly different from their description or demonstration model, the goods or services are unfit for their purpose and cannot easily be remedied in a reasonable time, goods or services are unfit for the purpose made known to the supplier and cannot be remedied within a reasonable time. Using glass only values contravenes all of these obligations. Not using total window (glazing) system values to Australian approved procedures and environmental conditions can result in significant under or over performance of the building envelope, especially in buildings with large glazed areas. The stated performance of the building will not meet the energy efficiency provisions of the BCA.
COMING EVENTS FOR 2014 Master Builders ACT Annual Charity Golf Day
Date: Monday 17 November 2014 I
2015 Master Builders & Cbus Excellence in Building Awards Official Launch
Date: Friday 21 November 2014 I
2014 Master Builders National Awards
Date: Friday 21 November 2014 I
Where: Federal Golf Club, Red Hill
The Master Builders ACT Annual Golf day will again this year be held at the Federal Golf Club in Red Hill.
Where: Snowy Hydro Southcare Helicopter Marquee
The 2015 Master Builders & Cbus Excellence in Building Awards will be officially launched at the Snowy Hydro Southcare Helicopter Marquee at Commonwealth Park. For more informarion contact David Leitch on (02) 6175-5970 Where: Great Hall, Parliament House
Each year Master Builders Australia acknowledges excellence in the building and construction industry through its prestigious National Excellence in Building and Construction Awards. This year the Awards will be presented in the Great Hall, Parliament House, Canberra on Friday 21 November.
TRAINING DATES FOR 2014 ASBESTOS AWARENESS (As of 1 July 2014, it is compulsory for anyone who may come into contact with asbestos to undertake this training. Workers effected by the regulation need to be registered for training by 30 September 2014 or risk incurring fines)
There are a number of available dates. (Contact Cecilee Miller at cmiller@mba.org.au to book your place, or visit www.mba.org.au/training The aim of this course is to provide participants with an awareness of the hazards and health effects of asbestos and its possible location in ACT homes and the community. Under the current Work Health and Safety ACT an employer must provide information and training to protect all persons from risks to their health and safety arising from their work. MBA Group Training will be running this half-day course through to December.
SECTOR COUNCIL MEETINGS 2014 COMMERCIAL
2 DEC
CIVIL
N/A
RESIDENTIAL
10 DEC
SUB-CONTRACTORS & SUPPLIERS
29 OCT
PROFESSIONAL
10 DEC
ACT PRIVATE SECTOR BUILDING ACTIVITY $100
MILLION
$80 $60 $40 $20 $0
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
The above graph and table below summarise private sector building activity for the various building sectors in the ACT over the past 12 months. The values for each month are depicted in millions of dollars.
// To Insert New Data Goto Object/Graph/Data • Copy and Paste Pivot Table Data into Data Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14
Additions and Alterations (Residential) Commercial Building Work Garages, Pools, Decks and Similar Structures Multi Unit New Housing
13 45 22.2 17.3 60
3.4 24 5 13 14.2
11 41 9 84 32
7 24 12 35 32
4.7 26 12 56 62
6.8 48.2 3.4 4.6 51
4.6 61 12 22.5 52
5 55 10 18 50
4.7 26 12 56 62
6.8 48.2 3.4 4.6 51
Jul-14 4.6 61 12 22.5 52
Aug-14 5 55 10 18 50