On-Site Insight 3 - 2007

On-site Insight

241 Northbourne Ave, Lyneham Canberra ACT 2602 Tel: (02) 6247 2099 Fax: (02) 6249 8374 www.mba.org.au

June 2007 Changes to sponsoring temporary skilled migrants John Hourigan Manager, Visa Services Meyer Vandenberg Skills shortages have the capacity to adversely impact on business sustainability. The Immigration Minister recently announced changes to the temporary skilled migrant or 457 skilled worker visas category. The changes spell both good and bad news for employers intending to sponsor temporary skilled migrants. Businesses with a strong and demonstrated record of complying with 457 visa obligations may receive streamlined and priority processing. Enhanced sponsor sanctions are being implemented to encourage greater compliance with 457 obligations.

Sponsored 457 skilled workers must now have at least functional English. This can be demonstrated by either achieving a score of an overall band of 4.5 in an International Language Testing System (IELTS) or providing other evidence they have functional English.

These changes do not affect existing 457 visa holders but will apply to them if they seek subsequent 457 visas.

To find out more about how to succeed in sponsoring temporary skilled migrants, or assistance in finding an overseas skilled worker please email john.hourigan@meyervandenberg.com.au

ASBESTOS TRAINING The Master Builders Association of the ACT will be commencing asbestos training in July 2007 for its members and the broader community. This course is accredited by the ACT Government.

Identification & Safe Handling of Asbestos (National Accreditation Code 80803ACT) Secure your position on this training course by contacting Norma Inglis on 02 6247 2099 or email norma@mba.org.au.

241 Northbourne Ave Lyneham ACT 2602 Phone 02 6247 2099 www.mba.org.au

Proposed Construction Industry Security-Of-Payments Scheme The ACT Government in its budget announced funding of $405,000 over four years to establish a security-ofpayments scheme for the ACT building and construction industry.

Minister for Industrial Relations Andrew Barr said the scheme would facilitate reliable and prompt payments in the building and construction industry.

“Regular and timely payment for contractors, subcontractors and suppliers has long been an issue in this industry nationwide. It can affect the viability of business, particularly small enterprises, that are highly dependent on regular cash flow for their continued existence,” Mr Barr said.

“Several jurisdictions including NSW have established similar schemes, which include a rapid adjudication system for payment disputes. These appear to have worked effectively and have significantly reduced instances of spurious claims and unfairly withheld payments.”

Mr Barr said the first stage in establishing the ACT scheme would be to undertake a scoping study of schemes in other jurisdictions in order to identify a model that would be most suitable for the ACT. “Once we determine a model, it is likely the ACT Government will introduce legislation to form the basis of the scheme,” Mr Barr said.

It is expected that legislation would increase the speed of payment turnover and overall efficiency in the industry.

“This scheme will have a proportionately positive impact on small business and is consistent with the Government’s commitment to make the ACT the most small business friendly jurisdiction in Australia.”

As the Governments proposal to introduce a Construction Industry Security-Of-Payments Scheme will have a major impact on MBA member contractors and builders.

The MBA will be contacting its members in due course to consider the Government’s proposal and provide constructive comments in development of the proposal.

Do you hold an ACT Certificate of Competency for Plant and Machinery??

In This Issue Territory Plan Reform Online Lodgement of Development Applications Home Building Contracts Changes to sponsoring temporary skilled migrants Construction Industry Security-Of-Payments Scheme

Important Dates Tuesday 26 June Boral Trade Night Saturday 30 June Green Living Open Day 10am - 4pm Wednesday 11 - 13 July Remodelling Conference Rydges Lakeside Canberra Thursday 12 July Industry Dinner Suppliers & Subcontractors Sector Council Meeting

ACT WorkCover has been advertising that all Certificates of Competency for Plant and Machinery, issued in the ACT before 2000, need to be updated to a National Certificate of Competency by 1 July 2007.

The new cards will have National recognition and will meet current National Standards and Occupational Health and Safety Legislation.

This means that the cards will be recognised in any State or Territory in Australia.

To update your “old” certificate you can obtain an application form from the WorkCover website www.workcover.act.gov.au/pdfs/forms/competency_certificate.pdf or Collect an application form from the Work Cover shopfront located on Level 3, Block B Callum Offices, Easty Street Woden ACT. MBA (ACT) recommends that all members with Certificates of Competency for Plant and Machinery issued before 2000 update them by 1 July 2007. If you do not update, there is the likelihood that your “old” certificates will not be recognized and that full application and testing for a Certificate of Competency may be required.

For further information contact WorkCover on 02 6205 0200 or email workplacesafetysup@act.gov.au.

Master Builders Fidelity Fund Providing: • ACT Home Warranty Insurance • Discounts for MBA Members • Speedy Application Process For more information about the Fidelity Fund contact Dave on 6247 2099

Professional Sector Council Meeting Friday 7 September Industry Dinner & Earth Awards

AN INDUSTRY UPDATE FROM THE MASTER BUILDERS ASSOCIATION OF THE ACT

On-site Insight Master Builders Association’s submission to ACTPLA on Territory Plan Reform General comments - Residential Code: Under the application of the code, it is stated that this code applies to all residential developments and small scale non-residential developments. However, this code does not appear to apply to small-lot housing, say 200-300sq m, with a frontage of significantly less than 15m. If the current Draft Residential Code were to apply to blocks of, say, 200sqm to, say 350-400sqm, it is our belief that no dwelling appears to be able to be approved on these allotments under the proposed code requirements.

Transitional arrangements: Our members are particularly concerned about the lack of information regarding transitional arrangements. It is of concern to the MBA that the Territory Plan Reforms have been developed to this stage without details on how any transitional arrangements will be implemented.

We will need to advise our members at least six months in advance of implementation as designers will be in the process of developing designs well in advance of the implementation dates.

Impacts of introducing new Codes: It is likely that there will be considerable cost impacts if sensible transitional arrangements are not put in place.

Builders will have already purchased land and will have entered into arrangements with possible clients to build standard designs under the old guidelines. The new Codes, if implemented, will decrease residential dwelling densities due to increased setbacks. More land will be required for the same number of dwellings as a result of decreasing densities. This will also impact on the ACT government’s Affordable Housing policies.

The following are the main points raised in the MBA submission relating to the proposed residential codes. A copy of the submission is available from the MBA should you require one.

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Increased setbacks from the old Codes. These changes are not supported by the MBA

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The majority of MBA members are in favour of dropping the L&Ds, however, our developer members see great value in the L&Ds. The MBA has addressed both of these issues in its submission

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Those in favour of retention of L&Ds are suggesting that when a prospective land purchaser decides to invest in land, the L&Ds clearly explain what is allowed on that block and any restrictions that may be associated with that lease. Dropping the L&Ds would necessitate a potential land purchaser reviewing the Precinct Code and the Residential Code to satisfy themselves as to what they could build on the block The MBA agrees that site coverage is the preferred option rather than GFA (Gross Floor Area)

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Site coverage issues need to be clearly defined and should not include driveways. Site coverage should purely relate to the structures above ground on the site

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The MBA’s Residential Council also raised the issue of referral authorities and the fact that they are the main reason for major delays in the current process.

They support the 10-day time limit on the referral authorities, however, they are sceptical that agencies will apply a stop-clock and request trivial information to stop the process as a means of getting extra time to deal with an application referred to them

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The MBA’s Residential Council also raised the issue of housing affordability and the possible impacts the new Codes will have where increased setbacks are required and the land is not utilised to its full capacity. Another example of poor land utilisation is the requirement for Actew access to services The MBA’s Residential Council also supports the DA exemption in green fields and supports the extension of this exemption to Code compliant additions and alterations.

The MBA’s Residential Council’s view is that 70% of all DA applications should be in Code track, rather than merit track. If a proponent decides to work outside Code track, then it is their call to seek approval under merit assessment. However, the Council was of the view that, for the majority of approvals, sensible Code criteria could be set The MBA’s Residential Council also stated that a number of project builders would have difficulty in having their designs approved under the proposed Codes One of the MBA Member architects gave an example of a design that he was working on to extend an existing house in an established area. When applying the new Code guidelines, he would not be able to add 130sq m to the existing residence. To achieve the client’s expectations would necessitate the demolition of the existing residence. This of course raises the issue of sustainability and maintaining the existing housing stock Water conservation is an issue that is raised at every MBA Council meeting. Water used in landscaping and grass accounts for 50% of total water usage when there are no water restrictions applied. MBA builders were of the view that it is ridiculous to be increasing setbacks and increasing possible grassed areas, or replacing grassed areas with paving, seems to be a totally unsustainable approach The issue of policy neutrality has been raised by all and there is a strong view that the major changes that have been made are not policy neutral, however, the general consensus is that the Territory Plan did require a major overhaul and that we are heading in the right direction with the Reform process

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There is a view that there will be a massive reduction in the provision of single-level housing due to restricted site setbacks. The general trend is for larger houses, so people will be forced to move upwards

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Multi-unit developers are concerned that there will be less units allowed per site and this will result in increased unit sale costs

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Multi-unit developments in A10 areas, under the proposed Codes, will be restricted to a maximum of five units per site. Currently there is no maximum and apparently there is no explanation as to what happens if sites are amalgamated

For a copy of the submission contact Karen at MBA on 6247 2099 or email kdavies@mba.org.au

Online Lodgement of Development Applications - eDABS The ACT Planning and Land Authority has been building online systems for customers to lodge development applications and track building approvals.

These are the latest stages of a significant upgrade of online resources by the Authority, including an overhaul of its web site, providing access to sewerage tie information via the Internet and mobile phones, and the development of ACTMAPi, an interactive web-based mapping resource that enables the user to view satellite imagery and aerial photography and to query block and section boundaries, Territory Plan land use policies and overlay provisions, easements, survey control marks and more.

In the 2007-2008 Budget, the ACT Government committed $2.048 million over four years to further enhance and extend the existing services.

The first part of the project now available for use includes the electronic development application (eDA) form, allowing applicants to lodge DAs any day, any time. There’s only one electronic copy to submit and built-in intuition of what questions need answering and documents need uploading. The form has the capacity to populate the majority of the form based on information entered by the applicant. This reduces time required to complete the application. Step-by-step instructions and details on document requirements are a mouse click away.

The building approval stage of eDABS is under construction. When completed, building certifiers, builders, plumbers, drainers and electricians will be able to log on to view their own project site and with a future enhancement, will have the option to display their own business logo.

Approved customers will be able to track a project through various stages from a pre-application meeting, development approval, building certifier appointment,

hydraulics and electrical stages, including required inspections to the issuing of a Certificate of Occupancy and Use. For those interested in finding out more, contact the Authority on (02) 6207 1687 to discuss or arrange a demonstration of the eDA, or log on to www.actpla. act.gov.au and click on Design and build – Lodge a development application.

EQUIPMENT REQUIRED FOR LODGING VIA EDA To lodge a DA online using the eDA form you need: • • • •

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a web browser and high-speed internet connection, broadband preferable the ability to convert or create plans in PDF and JPEG Pentium 4 or equivalent Adobe Acrobat Professional or Adobe Reader version 7.0.5 as a minimum or up to version 7.0.9 (free from Adobe – note at this point in time, you will not be able to run the eDA form using version 8) flat bed A4 scanner; and digital camera for photos (optional).

Home Building Contracts How many of you have read a “Home Building Contract”, written and distributed by MBA (ACT) from cover to cover.

This Contract was written by some of the finest minds in MBA (ACT) for the benefit of our Members. It is a Lump Sum Contract for Residential Building Work written in plain English.

It is hard to understand how anyone can sign a contract for the figures of over $100,000 and not be fully aware of their rights and obligations, their clients’ rights and obligations and what to do when the project and relationships turns sour.

Many disputes between builders and clients in the residential construction area can be avoided by a well written and thought out contract. The contract should clearly define, and ensure that all parties know their rights and obligations, what has actually been allowed for in the price, have the plans that form part of the contract actually attached to the contract and the builder making sure his clients are aware of and agree to, any variations to the contract.

The MBA(ACT) Home Building Contract does just that! It spells out everything that is required from the builder and his clients in a way that is readable and understandable.

For any members that would like to attend a free 2 hour workshop on “LUMP SUM HOME BUILDING CONTRACTS, your rights and obligations” please phone MBA (ACT) on 02 6247 2099, to register you interest.

We will aim to have the workshop on Saturday 21 July

AN INDUSTRY UPDATE FROM THE MASTER BUILDERS ASSOCIATION OF THE ACT

On-site Insight

NATIONAL REMODELLING CONFERENCE – CANBERRA 11 – 13 JULY

Dear Member I introduce to you the first National Remodelling Conference to be held in Australia from 11-13 July in Canberra.

This is the only conference of its kind dedicated to the remodelling industry. This is the fastest growing sector of our industry across both residential and commercial remodelling. This conference will connect you to the people geared at making your business grow. Whether you are a principle contractor, selfemployed contractor, tradesperson, business partner or key personnel, this conference has what you need to develop and secure your future in this booming industry.

The National Remodelling Conference in Canberra will have a specific focus on the development of tools that you can use to drive your business further with less hours, less stress and more profit. What more can you ask for???

Internationally renowned presenters will deliver a broad range of specialist presentations and workshops which are specifically targeted at developing systems and practices that are peculiar to the remodelling sector. The enclosed conference flyer program will give you a range of workshop and seminar options over the three days. The keynote and dinner speaker will be the Sunrise host, David Koch.

Attending this conference you will earn up to 30 CPD points towards renewal of your NSW Builders Licence.

Please do not hesitate to contact Kate Glanville, Events Coordinator, Master Builders ACT for further details on 02 6247 2099 or kglanville@mba.org.au Alternatively, please visit www.mba.org.au Register now as numbers are limited and I look forward to seeing you in July.

Yours sincerely

Jerry Howard Deputy Executive Director

AN INDUSTRY UPDATE FROM THE MASTER BUILDERS ASSOCIATION OF THE ACT

On-site Insight Level 4 Water Restrictions – Exemption pre-registration now open With the ACT’s water levels continuing to drop, we may soon see the implementation of Level 4 Water Restrictions.

An overview of these restrictions is below.

ACTEWAGL has launched pre-registration for businesses in local industries that rely on outside water use, including building and construction. If you would like to pre-register your business for an exemption during Stage 4 Water Restrictions, please go to: https://secure.actewagl.com.au/forms/actew/Stage4WaterExemption.aspx Use

Restrictions

1.Private gardens and lawns; commercial nurseries, market gardens and turf-growing businesses

External watering of lawns and plants only permitted using non-potable water.

2. Lawns and plants at parks, sports amenities, golf courses and public gardens

External watering of lawns and plants only permitted using non-potable water.

3. Paved areas

Water must not be used to clean paved areas unless necessary as a result of accident, fire, health hazard or other emergency.

4. Private ponds and fountains

Fountains must be switched off.

Only ponds that support fish may be topped up, and then only using a hand-held hose fitted with a trigger nozzle, a bucket or a watering can.

5. Public ponds and fountains

Ponds must not be filled or topped up with any water.

No fountains may be operated or filled or topped up with any water.

6. Private swimming pools

Pools must not be emptied, filled or topped up without written exemption.

7. Public swimming pools

Pools may not be emptied, filled or topped up without written exemption.

8. Water storage tanks, dams, and lakes.

Must not be filled or topped up other than with non-potable water.

9. Vehicles

No vehicle washing.

Boat motors may be flushed or rinsed after use.

10. Windows and buildings

No washing unless necessary as a result of accident, fire, health hazard or other emergency, provided that building gutters may be cleaned at any time

11. Construction and related activities

Only non-potable water should be used unless otherwise exempted in writing.

The MBA’s submission to ACTEW Corporation recommends the following •

Full exemption for domestic Construction including Greenfield sites and additions and alterations to existing residences

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olume users (e.g. Civil Contractors) must have access to pond and lake water used for dust suppression and V site works, such as compaction of road base to design standard. The civil contractors are prepared to provide a layout map outlining potential access points that can be identified for tanker filling Why? There are approximately 30 water carting trucks in Canberra at present on civil jobs each carrying 13000 litres each. They average about eight trips a day, which equals approximately 100,000 litres each per day. This could equal a saving of approximately 3.2 megalitres of Potable water a day The MBA’s commercial builders will utilize underground tanks where provision has been made for storm water detention and these tanks can be used in the interim to contain recycled water for use during the construction of the building. This will amount to a substantial saving in the use of potable water in the construction of a typical commercial building. The MBA has had discussions with ACT Health regarding storage of large volumes of recycled water and guidelines can be agreed on for the its use and distribution

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Whole of Government and industry support required to address this issue

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MBA (ACT) will develop an education program on Best Practice Water Use in the construction Industry. The MBA has agreed to consult with all its members and also provide information sessions free to the public on best practice when using water.

AN INDUSTRY UPDATE FROM THE MASTER BUILDERS ASSOCIATION OF THE ACT