On-Site Insight 5 - 2007

On-site Insight

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

September 2007 Business Practices Protection Companies nowadays are vulnerable to fines and penalties that may be imposed by inadvertent breaches of Acts of Parliament. The cost of the fine itself can be difficult to fund let alone the expenses of legal representation.

Most investigations and examinations by Government agencies are brought against the company itself, and may not necessarily be covered under a Directors and officers liability policy.

Many companies also face exposure from Employment Practice issues such as Unlawful termination due to discrimination, bullying and harassment.

AUSTBROKERS, in conjunction with Specialist Underwriting Agencies and Lumley General can offer a policy that will protect these Business Practices in a convenient modular cover.

Section 1 - Statutory Liability What is covered?

• fines • costs and expenses to defend the imposition of a fine • most acts administered by Commonwealth, State and Local Government What isn’t covered?

• Intentional, deliberates, dishonest, fraudulent or malicious acts, including gross negligence and recklessness • Fines and penalties attributable to the requirement to pay taxes (ie GST related issues) • Prosecutions brought against the company arising our of industrial disputes, breach of Trade practices act

“Master Builders’ Workers Compensation Insurance program continues to save its members money For further information and eligibility contact David Leitch at the Master Builders on 02 6247 2099 or 0437 379 391

Section 2 - Defence Costs Indemnity What is covered?

• the requirement to attend any prosecution or inquiry (criminal or otherwise) • any investigation, examination or other proceeding What isn’t covered?

• commercial and contractual disputes • Gross negligence, recklessness, intentional or deliberate acts • Any damages including fines, penalties • Prosecutions brought against the company arising our of industrial disputes, breach of Trade practices act Section 3 - Employment Practices Liability What is covered?

• Unfair, unlawful or wrongful termination, failure to promote, refusal to employ and or demotion • Sexual harassment, bullying • Unlawful discrimination • Legal costs accrued in defending an allegation What isn’t covered?

• Any express obligation, or breach thereof to make payments • Dishonest, criminal, fraudulent or wilful act • Failure to comply with any law, government or administrative order or award of any court of tribunal.

This is an overview of the policy provided only and we would recommend reading the policy wording in full prior to considering cover.

Contact Christine to obtain a quotation and further details if required.

“I saved over $8500 this year by transferring my workers’ compensation policy to the Master Builders members plan” Michael McPherson M & D McPherson Bricklaying Pty Ltd

Family and Community Day

In This Issue Bachelor of Building and Construction Management The Cadet Program at Master Builders Group Training Foundation Maintenance Business Practices Protection

Important Dates Wednesday 10 October Trade Night New Homes - New Innovations Monday 22 October Master Builders Golf Day 8-10 November International Conference Gold Coast Saturday 10 November Green Living & Building Open Day Friday 16 November Annual Dinner Asbestos Training Dates Thursday 20 September Wednesday 26 September

Minister for Industrial Relations, Andrew Barr has announced that workers in the ACT will get a day off to spend with their families, with the first ever ACT Family and Community Day to be held on the first Tuesday in November. This coincides with Melbourne Cup Day.

Understanding OHS accreditation under the Federal Safety Commissioner Accreditation Scheme in the building and construction industry On 15 September 2005, the Australian Government enacted the Building and Construction Improvement Act 2005 to improve health and safety and make the industry safer. A key strategy in this improvement plan was the establishment of the Office of the Federal Safety Commissioner (FSC). One of the key responsibilities of the FSC is to oversee the Australian Government Building and Construction OHS Accreditation Scheme.

The FSC has issued Eight Safety Principles and an OHS Accreditation Pack to assist construction companies to comply with OHS expectations.

In line with this development the MBA, in partnership with Human Dymensions Pty Ltd, has developed an eight module program (each module lasting four hours) targeting the eight key principles of the FSC. To meet the requirements of the Federal Safety Commissioner, organisations will have to demonstrate compliance with the Commissioner’s eight key principles (and their sub-sets) and systems integration between espoused Policies and Procedures and the realities of safety culture on site.

This training course will commence in November. For further information and course registration details contact Norma on 02 6247 2099.

Master Builders International Conference Gold Coast 8-10 November 2008 Master Builders Australia is pleased to be hosting the Master Builders International Conference, Building Exhibition and National Awards in 2007 on the Gold Coast and we would like to extend an invitation to what promises to be an exciting and rewarding experience.

For further information visit www.masterbuilders.com.au or phone 02 6202 8888.

AN INDUSTRY UPDATE FROM THE MASTER BUILDERS ASSOCIATION OF THE ACT

On-site Insight Bachelor of Building and Construction Management (937AA) Why study building and construction industry?

The building and construction industry plays an important role in the Australian economy. The value of work done in 2006 amounted to $90 billion and there are over 900,000 people employed in the Australian industry.

There are approximately 12,000 people employed in the industry in the ACT and region. At the current time there is a considerable shortage of managers in the industry.

The Bachelor of Building and Construction Management is a three year management degree aimed at providing the knowledge necessary to act as a manager in the building and construction industry.

The course The degree is a new course which is being introduced in 2008 following extensive consultation with and help from the industry and associated professional bodies.

Students begin the course by undertaking units in aspects of management before moving onto specialist units making up the major in building and construction management. The course is designed so that students can also undertake another major or a minor in other aspects on management. Those choosing to undertake the minor can undertake elective units from a wide range of units offered throughout the University.

The units in management, normally taken by full time students in their first year, comprise units in marketing, management, accounting, economics, information systems, statistics, business law and finance.

The major in building and construction management is made up of three units in building and construction studies, two units in estimating and measurement, a unit in building and construction law, construction project management and contract administration.

Students will be required to undertake 30 days of work experience in the building and construction industry.

They will also be required to satisfactorily complete the OH& S course to enable them to enter a construction site before commencing the major in building and construction management.

The minor is available in wide range of management disciplines including business economics, business management, e-business, entrepreneurship, marketing, international business and human resource management.

Students with a completed Diploma or Advanced Diploma from Canberra institute of Technology, or equivalent interstate TAFE, may apply for advanced standing.

Further details of the advanced standing can be found in the Information for CIT students applying for the Bachelor of Building and Construction Management.

On-site Insight The University is currently seeking to have the Bachelor of Building and Construction Management approved as a course which meets the tertiary qualifications necessary to be registered as a Class A Builder in the ACT. This qualification is not required to be employed as a manager within the building and construction industry. Enquiries in relation to the status of this application should be directed to the School of Business & Government closer to the commencement of the degree.

The Cadets train one day per fortnight at Master Builders Group Training starting their classes at 1:00 pm and finishing in the evening to accommodate a wide spectrum of employers who participate in the evening program by providing lectures on selected topics for which they contribute their experience and knowledge. The level of interest by employers is very much appreciated by Master Builders Group Training as we believe that these qualifications are greatly enhanced by industry input.

Further information The Course Convenor for the Bachelor of Building and Construction Management is expected to take up their position in mid to late 2007. In the meantime the School of Business & Government should be contacted for advice on academic aspects of the course.

Most Trainees and Cadets are employed by Master Builders Group Training and hosted out to employers although we have a steadily increasing number of ‘User Choice ‘Learners who are employed within the industry and have nominated Master Builders Group Training as their training provider.

For advice on administrative and enrolment matters contact the: School of Business & Government Phone (02) 6201 2904/2706 Email: govmgt@canberra.edu.au

Trainees commence at Certificate II and III level and undertake business qualifications to equip them to work efficiently in office environments. Once a Trainee has completed their Certificate III in Business, they may either progress to Cadet training or leave the training program to work for an external employer.

For further details: www.canberra.edu.au/schools/business/courses Admission Information and forms: www.canberra.edu.au/aus-future-students/apply

CADETSHIPS No experience is required Fantastic opportunities exist for enthusiastic and ambitious people to start their career with a Cadetship in the Building & Construction Industry Achieve nationally recognised qualifications in a range of professional disciplines, secure employment in a thriving industry and get paid while you learn!

Career pathways include Contract Administration, Estimating & Project Management You will require a mature outlook and a willingness to learn, be hardworking, dependable and computer literate with good academic results in Year 12 Maths and English.

For more information contact Kalli Leister on 6280 9119

Our second group of Cadets is completing Certificate IV qualifications in Contract Administration. They have the option of also undertaking Estimating and Site Management electives before moving on to Diploma level.

We are working towards bringing more women and people with trade backgrounds into the program to provide greater diversity amongst our ‘graduates’. Feedback from the participating host and private employers has been increasingly positive and as the program evolves and improves, we are welcoming of both employer and potential learner interest. There is a significant number of people within the industry who are carrying out paraprofessional roles and who have not had the opportunity to get formal recognition for their knowledge and skills and our hope is to establish a process (Recognition of Prior Learning – RPL) so that we can provide this opportunity for them.

Master Builders Group Training is currently training 30 trainees and cadets at various levels of qualification on the Australian Qualifications Framework. We have a group of 9 Cadets currently undertaking Advanced Diploma studies and it is anticipated that this group will complete their competencies by March of 2008 to align with the start of the University of Canberra Undergraduate course in Building and Construction Management.

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AN INDUSTRY UPDATE FROM THE MASTER BUILDERS ASSOCIATION OF THE ACT

On-site Insight Foundation Maintenance Canberra’s Drought and Tough Water Restrictions Take Their Toll on Foundations Builders advise your clients of the possible implications of further water restrictions and the actions they should take to minimise foundation movement damage to their homes, refer to the following advice for guidance to foundation maintenance.

Foundation movement issues across Australia A recent survey of 75,000 homes around the country has found that more than 35 per cent of houses across Australia, including Canberra, are experiencing cracking as the ground dries out. These cracks can appear overnight due to the soil drying out and putting strain on the structure of the house. Cracks in brick walls up to 5mm have been known to close up as moisture is returned to the soil. Whilst the age of a house and local soil types are a major factor in the cracking, the effects of drought are obvious. In a number of instances the soil can be seen contracting from the house as it dries out and shortly after the cracks appear.

Soil Types Buildings can and often do move. This movement can be up, down, lateral or rotational. The fundamental cause of movement in buildings can usually be related to one or more problems in the foundation soil. It is important for the homeowner to identify the soil type in order to ascertain the measures that should be put in place in order to ensure that problems in the foundation soil can be prevented, thus protecting against building movement.

The types of soils usually present under the topsoil in land zoned for residential buildings can be split into two approximate groups - granular and clay. Quite often, foundation soil is a mixture of both types. The general problems associated with soils having granular content are usually caused by erosion. Clay soils are subject to saturation and swell/shrink problems.

Seasonal swelling and shrinkage of soil All clays react to the presence of water by slowly absorbing it, making the soil increase in volume. The degree of increase - varies considerably between different clays, as does the degree of decrease during the subsequent drying out caused by fair weather periods. Because of the low absorption and expulsion rate, this phenomenon will not usually be noticeable unless there are prolonged rainy or dry periods, usually for weeks or months, depending on the soil characteristics.

The swelling of soil creates an upward force on the footings of the building, and shrinkage creates subsidence that takes away the support needed by the footing to retain equilibrium.

Seasonal swelling/shrinkage in clay Swelling foundation soil due to rainy periods first lifts the most exposed extremities of the footing system, then the remainder of the perimeter footings while gradually permeating inside the building footprint to lift internal footings. This swelling first tends to create a dish effect, because the external footings are pushed higher than the internal ones.

Tree root growth Trees and shrubs that are allowed to grow in the vicinity of footings can cause foundation soil movement in two ways: • Roots that grow under footings may increase in cross-sectional size, exerting upward pressure on footings.

• Roots in the vicinity of footings will absorb much of the moisture in the foundation soil, causing shrinkage or subsidence.

Complications caused by the structure itself Most forces that the soil causes to be exerted on structures are vertical – i.e. either up or down.

However, because these forces are seldom spread evenly around the footings, and because the building resists uneven movement because of its rigidity, forces are exerted from one part of the building to another.

The net result of all these forces is usually rotational.

This resultant force often complicates the diagnosis because the visible symptoms do not simply reflect the original cause. A common symptom is binding of doors on the vertical member of the frame.

Effects on full masonry structures Brickwork will resist cracking where it can. It will attempt to span areas that lose support because of subsided foundations or raised points. It is therefore usual to see cracking at weak points, such as openings for windows or doors.

In the event of construction settlement, cracking will usually remain unchanged after the process of settlement has ceased.

With local shear or erosion, cracking will usually continue to develop until the original cause has been remedied, or until the subsidence has completely neutralised the affected portion of footing and the structure has stabilised on other footings that remain effective.

AN INDUSTRY UPDATE FROM THE MASTER BUILDERS ASSOCIATION OF THE ACT

On-site Insight In the case of swell/shrink effects, the brickwork will in some cases return to its original position after completion of a cycle, however it is more likely that the rotational effect will not be exactly reversed, and it is also usual that brickwork will settle in its new position and will resist the forces trying to return it to its original position. This means that in a case where swelling takes place after construction and cracking occurs, the cracking is likely to at least partly remain after the shrink segment of the cycle is complete. Thus, each time the cycle is repeated, the likelihood is that the cracking will become wider until the sections of brickwork become virtually independent.

Effects on brick veneer structures Because the load-bearing structure of a brick veneer building is the frame that makes up the interior leaf of the external walls plus perhaps the internal walls, depending on the type of roof, the building can be expected to behave as a framed structure, except that the external masonry will behave in a similar way to the external leaf of a full masonry structure.

Movement in internal linings Considering a large number of fracturing and movement problems that are attributable to the drought conditions, internal lining contractors should not be held responsible for cracking of internal linings until the causes for such movements are thoroughly investigated. It is also suggested by a number of industry experts that whilst the extreme drought conditions prevail, it may be ill advised to carry out repairs too soon as the fracture problems may re-occur.

Surface water drainage In all soils there is the capacity for water to travel on the surface and below it. Surface water flows can be established by inspection during and after heavy or prolonged rain. If necessary, a grated drain or sump system connected to the stormwater collection system is usually an easy solution. Ensure that surface water is directed away from the footings and in older areas check the existing stormwater system to ensure that the drains are not clogged or blocked with tree roots.

Protection of the building perimeter It is essential to remember that the soil that affects footings extends well beyond the actual building line.

Watering of garden plants, shrubs and trees causes some of the most serious water problems.

For this reason, particularly where problems exist or are likely to occur, it is recommended that an apron of paving be installed around as much of the building perimeter as necessary. This paving should extend outwards a minimum of 900 mm (more in highly reactive soil) and should have a minimum fall away from the building of 1:60.

Caution with watering We may not be far away from people having to not only collect their shower and rain water but also having to make decisions on how to stabilise foundation movement with careful watering. Builders need to be cautious when providing advice to home owners on methods for dealing with foundation movement.

Expert advice should be sought from an engineer or geotechnical expert in this field.

Please find below an extract from AS2870 re damage classification for walls.

Classification of damage with reference to walls Description of typical damage and required repair.

Approx crack width limit

Damage Category

Hairline cracks

<0.1mm

0

Fine cracks which do not need repair

<1mm

1

Cracks noticeable but easily filled. Doors and windows stick slightly

<5mm

2

5mm to 15mm (or Cracks can be repaired and possibly a small amount of wall will need to be a number of cracks replaced. Doors and windows stick. Service pipes can fracture. Weather 3 3mm or more in one tightness often impaired. group) Extensive repair work involving breaking-out and replacing section of walls, 15mm to 25mm but especially over doors and windows. Window and door frames distort. Walls lean also depends on 4 or bulge noticeably, some loss of bearing in beams. Service pipes disrupted. number of cracks.

AN INDUSTRY UPDATE FROM THE MASTER BUILDERS ASSOCIATION OF THE ACT