2017–18 YEAR IN REVIEW
Published by Master Builders Australia Ltd PO Box 7170 Yarralumla ACT 2600 Level 3/44 Sydney Ave Forrest ACT 2603 T 02 6202 8888 F 02 6202 8877 enquiries@masterbuilders.com.au www.masterbuilders.com.au ABN 68 137 130 182 Š Master Builders Australia Ltd 2018 This publications is copyright and all rights are reserved. No part of it may be reproduced, stored, transmitted or otherwise distributed, in any form or by any means without the prior permission of the copyright holder. Prepared by Denita Wawn, Alex Waldren, Ben Carter, Ian Naden, Jess McIntyre, Shane Garrett, Max Rafferty, Rebecca Sostarko, Robert Wilson, Sam McGregor and Shaun Schmitke Designed by Amity Raymont
2017–18 YEAR IN REVIEW
YEAR IN REVIEW 2017–18
ii | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
CONTENTS 3
MASTER BUILDERS AUSTRALIA
5
President’s Report – Hedley Davis
6
Chief Executives Officer’s Report – Denita Wawn
9
ABOUT US
10
About Master Builders Australia
11
Member Associations
12
Board of Directors as at 2017–18
13
Board Structure as at 2017–18
15
Office Structure as at 30 June 2018
17
EVENTS
25
ADVOCACY
26
Building and Construction Economic Overview
30
Communications and Federal Government Relations Overview
32
Contracts
37
Industrial Relations
43
National Residential Builders Council
45
Non-conforming and Non-compliant Products
49
Training
53
Work Health and Safety
57
PROJECTS
58
Women Building Australia
61
Pre-apprenticeship project
62
THE NEXT 3 YEARS
64
3 Year Improvement Strategy
65
3 Year Improvement Plan Implementation
66
Business Success through real outcomes
67
Membership value
68
Past Presidents
70
Life Members
MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
4 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
President’s Report parallel to the constitutional review process to ensure the constitution is the best fit for the organisation into the future. Consultation on the constitutional change was facilitated with a coordinated program of meetings with Member Association Boards which also enhanced understanding of how the National Office can improve its value proposition. The benefit of these meetings cannot be overstated and it’s intended that they become an annual event.
This year has been marked by significant achievements by the National Board that will ensure that Master Builders Australia can continue to position itself as the premier national advocate for our industry. Cognisant of the continuing complexity and uncertainty of the political environment the Board has been determined to continue the strengthening of the organisation’s finances, governance and advocacy capacity. The Board has established a new Campaign Fund that will resource the National Office to fight, over and above day to day operations, on Federal Election campaigns and high stakes policy issues that could hurt or help our members. While minuscule in comparison to those held by unions, the Fund is a major step toward elevating the effectiveness of the National Office.
The National Office has been getting out there, both publicly and lobbying behind the scenes with political decision makers and influencers on a range of issues such as opposing the so called ‘super union’ merger to form the CFMMEU, increasing the accountability of unions and tax relief for small business. There has been both success and, despite our best efforts, failure, which highlights the significant challenges involved in fighting for members’ interests in the current Parliament. Nevertheless, MBA’s win ratio is firmly in the positive and I want to thank the staff in the National Office for their high level of professionalism in standing up for member’s in the past twelve months. Likewise, I extend my thanks to my colleagues on the National Board for their commitment to MBA and the Master Builders movement. They volunteer their time in the interests of members and their contribution must be recognised. As President, I look forward to working with the National Board and MBA’s CEO Denita Wawn in the coming year to continue toward the achievement of the Board’s 3 Year Improvement Plan.
HEDLEY DAVIS President
Following a review of governance practices, the Board has implemented changes to its meeting structure to reflect best practice and meet the needs of members. This change occurred in
MASTER BUILDERS AUSTRALIA | 5
YEAR IN REVIEW 2017–18
Chief Executive Officer’s Report As a consequence we have turned to highlighting other major issues affecting the industry including housing, small business and jobs and skills. We undertook research on housing affordability by releasing a two part study on the cost and lack of supply of land that has the most profound impact on housing affordability, we were vocal on the impact of taxation on small business success and we delivered two government programs to increase participation in the industry through pre-apprenticeships and encouraging women.
It was a big twelve months at the helm of Master Builders Australia to implement the first year of a 3 year improvement plan to ensure that we are the preeminent advocate for the building and construction industry.
We didn’t forget industrial relations, with Master Builders co-funding a case to stop the merger of the CFMEU with the MUA when it was apparent that legislation that would have otherwise introduced a public interest test to mergers was floundering in the Senate adversely impacted by the fallout of ministerial changes as a consequence of the constitutional crisis for parliamentarians.
On reflection we were able to achieve those 2017–18 objectives and more.
Staying at the forefront on issues affecting the industry through being responsive is just as important. This was exemplified through our defence of the 2016 Building Code when a motion was introduced in the Senate to overturn it which could have thrown out the foundations of all of our hard work on reestablishing the ABCC and the need for thoughtful and long-term thinking on building regulation as we experienced the consequences of the Grenfell disaster which has resulted in the establishment of an industry consultative group being formed to work with the Building Ministers Forum – an initiative led and agitated by Master Builders.
A reputation study found that we are a highly regarded national industry association but it was of concern that many viewed us solely through the industrial relations prism when in fact we are focused on a myriad of issues affecting the industry. That needed to change but not at the expense of losing our reputation on industrial relations.
We have also sought to increase our profile in Canberra by introducing two key events. A relaxed welcome back drinks for all parliamentarians that was well received with attendance from all parties and our inaugural National Leaders Summit with panel sessions featuring Ministers, Shadow Ministers, Senate Cross Benchers and Media.
We wanted to focus this year on getting an understanding of how we are perceived to assist in our communications strategy, how we can add value towards business success in the industry and ensuring we are delivering best value to our Member Associations, all through a high performing team.
6 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
Our National Conference and Awards in Hobart in November was an outstanding success but following a review of our events we have made the decision to no longer hold a conference. We want to focus our attention on Canberra based events that worked so well this year while adding in an additional award program to highlight business management success that will be introduced in 2019. In terms of governance we worked on the constitutional review process that lead to an agreement in June to significantly update the constitution to reflect how we want to work in the future. We have also undertaken a range of minor internal reviews that have led to cost savings to ensure we are maximising the use of Members fees for front line activities. We could not achieve all that we have done without a great team at the National Office. After a review of staff arrangements we created additional roles to boost our capacity in policy, legal and social media. These changes have paid off in terms of the additional level of work we have been able to produce and ensure that our messages are effectively communicated. A great job done by all the team. Thanks also to the National Board and the Executive Directors of our Member Associations. We are a proud Federated organisation and our level of success is dependent on the cooperation and goodwill amongst all the players. The National Office of Master Builders Australia is looking forward to the next 12 months.
DENITA WAWN CEO
MASTER BUILDERS AUSTRALIA | 7
YEAR IN REVIEW 2017–18
ABOUT US
YEAR IN REVIEW 2017–18
About Master Builders Australia
Master Builders Australia is the nation’s peak building and construction industry association. It has continuously represented Australia’s building and construction industry since it federated nationally in 1890.
Master Builders advocates national policy priorities that advance the interests and needs of Australia’s building and construction industry and those of the members who operate in and contribute to it.
The membership consists of large international and national contractors, residential and commercial builders, civil contractors, specialist contractors, and many small, independent subcontractors. Manufacturers, suppliers and industry professionals are also important members of the Association.
Policies are developed by five national board policy committees. Policy priorities are developed with the active participation of every State and Territory Member Association, and are therefore representative of the priorities of the grassroots members around Australia.
This broad membership allows Master Builders to represent 95 percent of all sectors of the building and construction industry. Master Builders’ leadership role ensures that the interests of all its members are represented to government and its various agencies at the federal level.
10 | MASTER BUILDERS AUSTRALIA
The policy focus of Master Builders includes industrial relations, occupational health and safety, training and education, economics, industry policy, taxation, international relations environment and energy, legal and contracts, and the technical and regulatory frameworks of the building and construction industry.
YEAR IN REVIEW 2017–18
Member Associations NORTHERN TERRITORY QUEENSLAND
WESTERN AUSTRALIA
NEW SOUTH WALES
SOUTH AUSTRALIA
NEWCASTLE VICTORIA
AUSTRALIAN CAPITAL TERRITORY TASMANIA
Master Builders Australia’s members are the Master Builder State and Territory Associations. Over the past 128 years the association has grown to cover 32,000 businesses nationwide, including Australia’s top 100 construction companies.
MASTER BUILDERS AUSTRALIA | 11
YEAR IN REVIEW 2017–18
Board of Directors 30 JUNE 2018
HEDLEY DAVIS President
SIMON BUTT Deputy President & ACT
CRAIG EDMUNDS Treasurer & TAS
ROSS MITCHELL NSW
GREG ZUCCALA VIC
PETER SALVESON SA
DICK GUIT NT
ROBERT SHAW WA
PETER DI PRINZIO Newcastle
TIM MEAD Extraordinary Board Member
DENITA WAWN CEO
12 | MASTER BUILDERS AUSTRALIA
RALF DUTTON QLD
DAN PERKINS Immediate Past President
*Retiring Board Members during 2017–18 Nick Herron QLD - resigned August 2017 Richard Bryant SA - resigned April 2018
YEAR IN REVIEW 2017–18
Board Structure 30 JUNE 2018
FINANCE
RISK MANAGEMENT
Craig Edmonds*
Simon Butt*
MBA LTD BOARD EXECUTIVE DIRECTORS ADVISORY Denita Wawn
WHS
POLICY ADVISORY
Craig Edmonds
CONTRACTS
INDUSTRIAL RELATIONS
Dick Guit
NATIONAL RESIDENTIAL BUILDERS COUNCIL Robert Shaw
Hedley Davis
NCPs Ross Mitchell
Until November 2017 Finance *Simon Butt
Risk Management *Hedley Davis
TRAINING Tim Mead
Contracts *Nick Herron
MASTER BUILDERS AUSTRALIA | 13
YEAR IN REVIEW 2017–18
14 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
Office Structure 30 JUNE 2018 EXECUTIVE Chief Executive Officer Denita Wawn Executive Officer Jessica McIntyre
INDUSTRY & ECONOMICS POLICY UNIT
INDUSTRAL RELATIONS, WORK HEALTH & SAFETY & LEGAL UNIT
COMMUNICATIONS UNIT
CORPORATE SERVICES UNIT
Media Management Communications strategy
Publications
Sponsorship Events Management International Accounts Program Management Corporate Compliance IT Management Asset Management
Housing Economic Analysis & Reports Taxation Infrastructure Small Business Building Regulations Environment Populations Policy
Fair Work Commission Workplace Relations Work Health & Safety Contracts & Procurement Competition Policy Superannuation Education & Training Immigration
National Director Media & Public Affairs Ben Carter
National Director Sponsorship & Events Steve Keys
National Director Industry Policy Alex Waldren
Digital Communications Officer Ross Buchanan
International Trade Action
National Manager Technical Services Max Rafferty
Deputy Chief Executive Officer, National Director - Safety, Contracts, Workplace Relations
Marketing Material Digital Communications Internal Newsletters Infographics
Publications Officer Sue Colman
Business Support Manager Ian Naden Accounts Raff Recupero Administration Kelly Carr
Economist Matthew Pollock
Shaun Schmitke
National Director Workforce Development & Training
Robert Wilson
Senior Adviser-Safety, Contract & Workplace Relations
Rebecca Sostarko
Policy & Industry Adviser
Sam McGregor
MASTER BUILDERS AUSTRALIA | 15
Past President, Dan Perkins, giving the Welcome speech
EVENTS
YEAR IN REVIEW 2017–18
2017 Building Australia Conference Hobart, 23–25 NOVEMBER 2017 The Master Builders Australia 2017 National Conference ‘Building Australia’ was held in Hobart at the historic Princes Wharf 1 (PW1) in November 2017. As part of their conference experience, delegates enjoyed a river cruise to a special off-site conference dinner at MONA the Museum of Old and New Art. A comprehensive program of high profile speakers examined the building industry outlook, focussing on topics relevant to today’s building and construction industry. An exciting social program ensured delegates’ had a rewarding experience.
Conference welcome
Hon Will Hodgman MP, Premier of Tasmania, launching the 2017 Conference
Delegates the conference exhibition space
Melanie Fasham (MBAV) and Denita Wawn (CEO MBA) at the Women Building Australia breakfast
Demonstration at the conference by World Woodchopping Champion, David Foster OAM
18 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
2017 National Excellence in Building and Construction Awards Hobart, 25 NOVEMBER 2017 Master Builders Australia’s prestigious National Excellence Awards celebrate the stand-out achievements of the best builders constructing the best projects from around the country. The Awards recognise the challenges overcome to deliver projects of outstanding quality for clients and the innovation, entrepreneurship, commitment to continuous improvement and the skilled tradespeople that allow Winners to achieve such high standards.
Spadaccini Homes, winner of the National Residential Master Builder of the Year
Valdal Projects Pty Ltd, winner of the National Luxury Alterations/Additions Awards - $650K–$1M
Nathan O’Neill, winner of the Woodsolutions National Young Builder of the Year
Matt Kriskovich, Adam Spadaccini and Rob Spadaccinni, Spadaccinni Homes Ryan Glass, Commercial Aquatics and Jason Kunkler, PACT Construction
MASTER BUILDERS AUSTRALIA | 19
YEAR IN REVIEW 2017–18
2017 National Excellence in Building and Construction Awards Hobart, 25 NOVEMBER 2017
Lendlease, winner of the National Commercial Builder of the Year
Mitchell Earl, winner of the National Apprentice of the Year
Sarah Constructions Pty, winner of the Commercial/Industrial Construction - $10 million - $20 million
TV personallity Sandra Sully MC’d the awards
20 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
Welcome Back to Parliament BBQ Canberra, 7 FEBRUARY 2018
A ‘soft lobbying’ element of MBA’s government relations strategy, the Welcome Back to Parliament BBQ marked the start of the political year marked by the return of Parliament. It brought together the leaders of the Master Builders movement with Ministers, Shadow Ministers, and crossbenchers in both the House of Representatives and the Senate, political advisers and members of the Federal Parliamentary Press Gallery.
Darren Chester MP, Denita Wawn CEO MBA and Senator Cory Bernardi
Senator Pauline Hanson, Pat Hancock and Dave Malone, CEO MBNT
Hedley Davis, National President of MBA and Senator David Leyonhjelm
Ross Mitchell and Cathy McGowan MP, Member for Indi
Rebekha Sharkie MP, Member for Mayo, Richard Bryant and Ian Markos, CEO MBSA
MASTER BUILDERS AUSTRALIA | 21
YEAR IN REVIEW 2017–18
National Leaders Summit Canberra, 20 JUNE 2018
The leadership of Master Builders from the around the country and the Managing Directors and CEOs of leading building and construction businesses heard from political leaders including then Treasurer, Scott Morrison and engaged with Ministers and Shadow Ministers from relevant portfolios. The Summit also attracted political influencers and power brokers including panels comprised of cross-bench senators and the Parliamentary Press Gallery.
Hon Scott Morrison MP, then Treasurer, Opening Address
Scott Morrison media conference at the Summit
22 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
Hon Dr Andrew Leigh, Shadow Assistant Treasurer on the Housing Panel
Kristian Fok Chief Investment Officer Cbus Super, Industry Opportunities & Challenges Address
Senator Pauline Hanson, Senator David Leyonhjelm and Senator Cory Bernardi
MASTER BUILDERS AUSTRALIA | 23
Hedley Davis, Hon Scott Morrison MP and Denita Wawn
ADVOCACY
YEAR IN REVIEW 2017–18
Building and Construction Economic Overview • Global economic backdrop largely favourable during 2017–18 • Australian economy continuing to create lots of jobs • New home building close to record levels • Price and wage pressures are subdued • Interest rates remarkably stable • House prices have started to fall in Sydney and Melbourne • Royal Commission has resulted in tighter financing conditions • Home renovations activity has dropped again • Engineering construction has received a boost from public spending • Faster growth in non-residential building activity Australia’s economic fate is deeply intertwined with that of the global economy through trade and investment flows. During the 2017–18 financial year, conditions across the world were mostly favourable from Australia’s perspective. Unemployment in the US reached its lowest rate since the late 1960s while joblessness in the Euro Area, the UK and Japan also glided lower throughout the year. Unsurprisingly, wage and price inflation have crept a little higher in response but even so, price pressures are quite muted overall. Economic growth in China is continuing to decelerate in an orderly fashion—it is ever more reliant on the consumer rather than investors for supporting demand. The opening skirmishes of a trade war between China and the US were the biggest negatives for the global scene over the past year—it is too early to say what implications if any—this will have for Australia’s economic performance. Within Australia itself, the economy is estimated to have expanded by 2.9 percent during the 2017–18 financial year—the strongest growth rate since 2011–12. This pace of growth is largely consistent with the achievement of full
26 | MASTER BUILDERS AUSTRALIA
employment in the economy. Put simply, this means that the economy has created enough additional capacity to accommodate all of the new entrants to the labour force. This has helped bring about a gradual reduction in the rate of unemployment. Between June 2017 and June 2018, total employment grew by about 350,000 across the Australian economy. The linkage between population growth and labour market conditions in Australia is quite tight: data for the latest 12-month period indicate that net overseas migration totalled 236,700: Australia’s population grows faster when its economy is doing well. With the total population increasing by 380,700 over the year to March 2018, it is unsurprising that household consumption made the largest contribution to economic growth over the past year—having more consumers results in more consumer spending. Consumer spending is also helped by the fact that interest rates in Australia are at about their lowest in modern history. This effect has been enhanced by the remarkably stable situation with respect to interest rates—consumers have been able to make spending decisions in the knowledge that mortgage repayments and interest costs are unlikely to change drastically. At 1.50 percent, the RBA’s official cash rate has been unchanged since August 2016—the longest stretch of ‘no change’ in rates in decades. One of the Australian economy’s great achievements over recent years has been in containing both price and wage inflation at a time when the Australian dollar’s exchange rate dropped sharply against most currencies and house prices recorded substantial growth in major cities. In many countries, this combination would have sparked off an upward spiral in inflation—but not here. The ability to keep inflationary pressures in abeyance has been of benefit to Australia in terms of capitalising on the recovery in the global economy, boosting exports and attracting inward investment from overseas.
YEAR IN REVIEW 2017–18
New dwelling construction New home building activity reached very high levels during 2017–18 with a total of 228,478 new homes commencing construction over the 12-month period. This represented an increase of 3.3 percent on the previous financial year, although it fell slightly short of the all-time peak for new home building activity during the 2015–16 financial year when work began on a record 233,659 new homes. The detached house side of the market was the real star performer during 2017–18—a total of 120,762 new starts were recorded here, the highest total for any 12-month period since the mid-1990s and 6.5 per more new house commencements compared with the previous financial year. Having peaked at 114,163 starts in 2015/16, the amount of activity on the nondetached side of the market fell back to about 106,200 during 2017–18—still 1.8 percent higher than in the previous financial year. Detached housing demand is more dependent on owner occupiers than investors. The enhanced First Home Buyer incentives on offer in several states have played a positive role here.
Thousands of New Dwelling Commencements
While the balance of factors was favourable from the point of view of new home building during 2017–18, the sector was hit with a number of challenges over the course of the year. A growing number of state governments adopted or increased foreign buyer stamp duty surcharges—these have reached near-
Total New Dwelling Starts in Australia (Selected Years)
250
200
There are a number of factors behind the strong performance of new home building during 2017–18. As discussed above, the interest rate environment has been remarkably favourable over recent years. The big increase in Australia’s population means that more roofs need to be put over more heads—and it is natural that new home building activity has responded to fill the gap. In particular, the big gains in full-time employment have widened the pool of eligible mortgage recipients and ultimately driven stronger new home building activity. Over recent years, the strong dwelling price gains in a number of key markets enhanced the financial viability of larger numbers of new home building projects. With prices now declining, the dynamics of the market have changed significantly in this respect.
234
221
228
182 145
150 115
100
50
0
1993–94
2000–01 (Record Low)
2011–12
New Dwelling Starts
2015–16 (All time high)
2016–17
2017–18
25-year Average
MASTER BUILDERS AUSTRALIA | 27
YEAR IN REVIEW 2017–18
prohibitive levels in some markets. This has been a major obstacle to investor activity in the market for newly-built apartments in Sydney and Melbourne. Investors have also been burned by the fallout from the Royal Commission, which has made the availability of finance more difficult. Investor interest in residential real estate has already been dampened by the fact that rental price inflation is at a 25-year low. Along with capital growth, rental income is the second of two pillars of reward for investors in the market. The underwhelming returns on both scores has undermined investor demand for housing. The apartment side of the market has been particularly affected by this.
Renovations Activity During the 2017–18 financial year, the value of home renovations activity in Australia is estimated to have totalled $33.23 billion which represents a decline of 3.8 percent on the previous financial year. In contrast to new home building activity, the performance of renovations has been mixed over the past few years. The sector slumped by 15 percent between 2011 and 2013 before embarking on a modest expansion. The market never recovered to its previous peak and with activity again in decline this is unlikely to happen for some time. Renovations activity has been hurt by the big reduction in established house transactions right across Australia in recent years as well as the deceleration of house price growth in key markets that has taken hold. Over the medium term, the prospects for the renovations market will be helped by the steady increase in the number of detached houses entering into the most renovations-intense period of their life cycle. This is the very belated consequence of record volumes of new detached house building during the second half of the 1980s— increasing numbers of these homes will require renovations work in the early years of the 2020s decade.
28 | MASTER BUILDERS AUSTRALIA
Engineering Construction Having been in decline since its all-time peak in 2013, engineering construction activity experienced a strong rebound during 2017–18 with the volume of activity growing by 21.2 percent during the year. This followed a contraction of 8.9 percent during the previous financial year. Despite the strong percentage increase during 2017–18, the amount of activity remains well below its previous peak – engineering construction had fallen by some 42.2 percent between 2013 and 2017. During 2017–18, natural resources-related work accounted for the largest share of engineering construction work done (37.0 percent—worth $40.69 billion), followed by roads, highways and subdivisions (19.8 percent, or $21.75 billion). The electricity sector accounted for $12.3 billion worth of work done (11.2 percent of the total) followed by telecommunications ($10.67 billion, or 9.7 percent of the total).
Non-Residential Building The volume of non-residential building has grown consistently over recent years and this pattern was replicated during the 2017–18 financial year. Activity here rose by 3.8 percent to total $115.4 billion in value, a new record high for this area of the construction industry. Growth had clocked in at 1.7 percent during 2016–17. The most important sectors of non-residential building during 2017–18 were offices (17.0 percent of the total), followed by education (15.5 percent) and retail/wholesale (14.8 percent). In terms of growth during the year, office building saw the largest gain in value terms (+$1.89 billion), followed by education buildings (+$1.45 billion) and short-term accommodation buildings (+$890 million). The areas to see reduced building work included health (-$620 million), retail/wholesale (-$350 million) and factories (-$210 million).
YEAR IN REVIEW 2017–18
MBA National Survey
• Workplace programs and agencies;
The MBA National Survey of Building and Construction continued to report quarterly during the 2017–18 financial year, providing a wealth of timely information on current conditions, expectations and perceptions across Australia’s construction industry.
• Workforce skills; and
Over the course of the year, the MBA Survey identified an easing of conditions in residential building although those active remained optimistic about short-term prospects. In terms of non-residential construction, the MBA Survey results suggested that market conditions were broadly stable throughout 2017–18 although expectations dimmed slightly as year-end approached. The MBA Survey results indicate that the performance of construction firms during the year was strongest with respect to turnover and the volume of work in progress. At the other end of the scale, apprentice numbers and recruitment were the areas of performance to struggle the most. Survey participants indicated that the level of demand and labour/materials costs were the external factors having the most positive impacts on their businesses—the nature of the building approvals process and land availability were cited as making the most negative contribution to their operating environment.
MBA Pre-Budget Submission 2018–19 MBA submitted proposals to Treasury some five months in advance of the May 2018 Federal Budget with a view to shaping policy decisions in a way that would be supportive to Australia’s building and construction industry. The MBA proposals were made in a number of different areas: • Infrastructure; • Housing, land use and taxation; • Small business and deregulation;
• Building regulation. In terms of infrastructure, the MBA pre-Budget submission called for public infrastructure spending to be increased to 6 percent of GDP by 2020 as well as improvements to be made to infrastructure financing arrangements. MBA also suggested that taxation arrangements around negative gearing and the tax exempt status of the family home be preserved and that public housing provision be increased in order to provide suitable accommodation for those in greatest need on public housing waiting lists. MBA also urged the implementation of incentive payments for state and local governments with respect to their respective performance on planning and zoning. MBA also set out its opposition to a simple ‘swap’ of stamp duty for more land tax and encouraged more creative ideas for the reduction of the taxation burden on the construction sector. The MBA submission appealed to government to reduce the regulatory burden on business and for procurement policies to be relaxed for small and medium-size businesses in order to enable such firms to bid more easily for public contracts. Our submission argued for increased resources to be made available to the ABCC, the Office of the Federal Safety Commissioner and Registered Organisations Commission. On workforce skills, MBA pointed out the advantages of increased jurisdictional consistency and enhancing the focus on quality and proposed that more resources be invested in elevating the status of VET as a career option. The submission also called for the regulatory burden and VET compliance costs on training providers, employers and educators to be reduced. Better regulation of non-conforming and non-compliant building products was also proposed by MBA.
MASTER BUILDERS AUSTRALIA | 29
YEAR IN REVIEW 2017–18
Communications and Federal Government Relations Overview Master Builders Australia’s (MBA) communications and federal government relations played a key role in prosecuting the national advocacy agenda, and increasing awareness and comprehension of the Master Builders brand in order to advance the achievement of the National Board’s 3 Year Improvement Plan. Master Builders was front and centre of the most important policy debates, serving as the voice of the industry, growing our influence and scoring wins on behalf of our members around the country. Our focus was sharpened and refined by a national policy workshop and research to understand the perceptions and priorities of both external and internal stakeholders including political decision makers, regulators, and media, the National Board, Executive Directors and Senior Executives of Member Associations. Two notable outcomes were the identification of key advocacy themes, for example small business, which we have commenced to integrate in our communication, and a road map to achieving more cooperation between the
National Office and Associations on both advocacy and brand focused communication. In a very busy year some highlights included; For the second consecutive year we broadcast Master Builders response to the Federal Budget live on Facebook. ‘Vox pops’ from industry leaders including Steve Margetic and Tim Mead powerfully communicated our budget priorities and complemented our CEO Denita Wawn’s commentary and analysis. Strategic advice was provided to Member Associations to assist in the development and evaluation of advocacy, member relations and brand communication. The investment to acquire in-house digital media content development capacity paid dividends with the substantial increase in the quality and output across our online and social media channels. Our successful social media campaign to promote the National Excellence in Building and Construction Awards its prestige and member engagement. Media coverage continued to improve in quality with the aid of Master Builders members proving
Set up for Budget Night broadcast at the Master Builders Australia office in Canberra
30 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
Denita Wawn (CEO MBA) on Sky News opposing CMFEU/MUA merger
particularly effective in achieving ‘cut through’ our of advocacy messages. Master Builders’ messages were reported on more front pages and our ‘share of voice’ increased. Reports of Master Builders’ policy priorities featuring comment from Dan Perkins and our successful public pushback on Labor’s position on tax relief or small businesses featuring comment from Robert Shaw were cases in point. Successful engagement with current and emerging political leaders included the Prime Minister, Treasurer and all members of the Senate crossbench and backbenchers from both the major parties. Attendance of our advocacy focused events highlighted the scope of our relationships ‘on the hill’. The Welcome Back to BBQ was attended by senior politicians, political advisers, all members of the Senate cross bench and members of the Canberra Press Gallery. The National Leaders Summit attracted the attendance of the Prime Minister, prominent Labor front-bencher Anthony Albanese MP, Ministers and Shadow Ministers responsible
for housing affordability, small business and the VET portfolios and Senators Hanson, Bernardi and Leyonhjelm. The Summit also showcased relationships with senior bureaucrats and the media with the Deputy National Secretary Estate and Infrastructure from the Department of Defence and the First Assistant Secretary from the Department of Finance giving presentations and a panel of correspondents from the Federal Parliamentary Press Gallery closing the event.
Hon Dr Andrew Leigh MP, Shadow Assistant Treasurer and Denita Wawn, CEO MBA
MASTER BUILDERS AUSTRALIA | 31
YEAR IN REVIEW 2017–18
Contracts
NICK HERRON
DICK GUIT
NATIONAL CONTRACTS ADVISORY COMMITTEE CHAIR UNTIL NOVEMBER 2017
NATIONAL CONTRACTS ADVISORY COMMITTEE CHAIR FROM NOVEMBER 2017
The Contracts portfolio has seen a sharp increase activity in the past financial year, with a focus on the update and publication of the ABIC 2018 suite. This year also saw the release of Mr John Murray’s report on Review of Security of Payment Laws and consideration of the next steps for the Standards Australia—General Conditions of Contract suite.
The 2018 review was substantial work for the National Office, with the release being a culmination of many hours of review and re-drafting of 3 base contracts, 3 sub-contracts, 6 user guides and ancillary guidance material, as well as a suite of forms totaling approximately 200 pages.
ABIC 2018 April 2018 saw the public release of the ABIC 2018 suite of contracts. The ABIC suite, being a joint venture between the MBA and the Australian Institute of Architects (‘AIA’), offers both base and subcontracts (including supplementary user guides and forms) for a variety of works, including: • ‘Major Works’ – Medium to large commercial or residential projects; • ‘Simple Works’ – Smaller to medium sized residential and commercial projects; and • ‘Basic Works’ – Small projects or those involving a single trade.
32 | MASTER BUILDERS AUSTRALIA
Security of Payment On 21 May 2018, the final report by Mr John Murray AM was released following a comprehensive review of Security of Payment (‘SoP’) legislation across the country. Our key responses to the 300+ page report’s 86 recommendations were that: • A framework is established that is fair to all parties and limits complexity; • Cash flow to subcontractors is protected, but not to the detriment of larger contractors faced with incomplete or defective works; • SoP laws should operate in a way that companies, especially small businesses, are prevented from being forced into insolvency;
YEAR IN REVIEW 2017–18
• Differing time-frames are provided for under to allow sufficient time to respond to complex/high value claims;
contract supply chain and that further consideration of their impact should be made in the context of the BCI.
• The extension of the SoP regime to residential building contracts, is implemented in a considered way that protects the rights of contractors and owner-occupiers equally;
Standards Australia - AS 11,000
• Any regime mandating cash retention/security/trust arrangements carefully considers processes already in place under construction contracts and any complexity and costs associated with mandating them down the supply chain; and • Any changes to the various SoP regimes do not impact upon productivity and limit the need for further regulatory burden. MBA is continuing to consider the report’s recommendations in consultation with its members. Relevantly, the Deputy CEO holds a statutory position in the Security of Payment Working Group that met on 4 May 2018 for the third time, hosted by the ABCC.
Stay of enforcement of Ipso Facto Clauses As of 1 July 2018, changes to the Corporations legislation by way of the Amendment (Stay on Enforcing Certain Rights) Regulations 2018 and Corporations (Stay on Enforcing Certain Rights) Declaration 2018 take effect. The amendments mean that in certain circumstances parties to a contract may no longer automatically terminate the agreement if the other party experiences an insolvency event. Prior to the new legislation coming into force, the Department of Treasury undertook consultation on the amendments. Consistent with previous submissions to Government when the amendments were initially proposed and following consultation with the NCAC, MBA filed a submission to Treasury. The substance of our submission was that we had concerns that the changes could have detrimental effects down the construction
MBA attended a meeting of stakeholders hosted by Standards Australia in February 2018, to discuss any next possible steps available to it towards the development of an Australian Standard General Conditions of Contract. The meeting follows on from Standards Australia’s abolition of the development of AS 11,000, largely as a result of MBA (together with HIA and ACA) raising repeated concerns that threshold issues within the document were not adequately addressed. The meeting failed to achieve a consensus in terms of the development of a potential scope for any new general conditions of contract. MBA, however, has subsequently been interviewed by a consultant, engaged by Standards Australia, to determine a way forward with regard to the review of aged Australian Standards AS2124 and AS4000. It is likely that one or both of the two standards will be subject to a review in the coming months and MBA has expressed ‘in principle’ interest in being engaged in any technical committee constituted to undertake that work. Given the wide use of AS 4000 and AS 2124, it is important that MBA ensure any review is reflective of actual industry practice rather than as a vehicle to effect policy changes or outcomes that would properly be the responsibility of Parliaments.
Contracts, supporting documents and other publications sold by Master Builders Australia MBA continues to offer for sale a comprehensive range of contracts, as outlined in the table below. We also sell Australian Standards contracts, as we have delegates engaged in their development. A comprehensive review of the MBA National Suite is scheduled to be undertaken in the later part of 2018.
MASTER BUILDERS AUSTRALIA | 33
YEAR IN REVIEW 2017–18
List of contracts, supporting documents and publications ABIC Suite – Principal Contracts
ABIC Suite – Subcontracts Sold by MBA
ABIC MW Contract
ABIC MW-Sub contract
ABIC SW Contract ABIC BW Contract
Sold by Joint Venture with Australian Institute of Architects
ABIC BW Commercial Contract ABIC Commercial Cost Plus Contract
ABIC MW Subcontract Short form Subcontract Pack ABIC SW-Sub contract ABIC SW Subcontract Short Form Subcontract Pack ABIC BW Subcontract
ABIC Early Works Contract (N.B Domestic versions of both MW & SW Contracts are also published)
ABIC BW Commercial Subcontract
ABIC Suite – Subcontract Guidance ABIC Principal Contract Guidance
ABIC Major Works Principal Contract User Guide ABIC Simple Works Principal Contract User Guide ABIC Basic Works Commercial Principal Contract User Guide ABIC Major Works Principal Contract Forms – PDF ABIC Simple Works Principal Contract Forms – PDF
34 | MASTER BUILDERS AUSTRALIA
ABIC MW-Sub-contract User Guide ABIC SW-Sub-contract User Guide ABIC BW-Sub-contract User Guide ABIC BW Sub-contract Commercial User Guide ABIC MW Subcontract Forms – PDF ABIC SW Subcontract Forms – PDF
YEAR IN REVIEW 2017–18
Master Builders Australia Principal Contracts
MBA/AIQS
Construction Management Contract 2012
Standards Method of Management (‘SMOM’)
Design and Construct Contract 2013 Independent Contractors Agreement 2015
Other MBA Publications Modern Award Manual
Master Builders Australia Subcontracts
National Employment Standards
Design and Construct 2013 Subcontract Trade Contract 2012 Period Trade Contract 2014
Australian Standards AS 4901 – Subcontract conditions AS 4000 – General conditions of contract
Master Builders Australia Guidance Construction Management User Guide Design and Construct 2013 Contract User Guide with Forms Independent Contractors Agreement 2015 –User Guide
AS 2124 – General conditions of contract together with general conditions of tendering and form of tender AS 2124N – Notes on the changes in the general conditions of contract 4th edition as compared with 3rd edition AS 2545 – Subcontract conditions
Period Trade Contract 2014 – User Guide Period Trade Contract 2014 Package (Agreement & User Guide)
MASTER BUILDERS AUSTRALIA | 35
YEAR IN REVIEW 2017–18
Members of the National Contracts Advisory Committee Nick Herron
Committee Chair until November 2017 and Board member
Dick Guit
Committee Chair from November 2017 and Board member
Charles Anderson
Master Builders Association of Western Australia
Robert Collings
Master Builders Association of New South Wales
Sam Condon
Master Builders Association of South Australia (from January 2018)
Cameron Spence
Master Builders Association of the ACT (until January 2018)
Ashlee Berry
Master Builders Association of the ACT (from April 2018)
Tracey Wood
Queensland Master Builders Association
Angelo Simonetto
Master Builders Association of Victoria
Shaun Schmitke
Committee Secretary, Master Builders Australia Ltd
Members of the ABIC Joint Development Committee Thien Foo Ko
Board appointment
Shaun Schmitke
Master Builders Australia Ltd
Meetings Held ABIC JDC 21 July 2017 – Melbourne NATIONAL CONTRACTS ADVISORY COMMITTEE 3 November 2017 – via Teleconference
36 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
Industrial Relations the merger. We are carefully considering whether an appeal of the decision is worthy of pursuit.
Australian Building and Construction Commission In February 2018, Mr Stephen McBurney took over as ABCC Commissioner after the retirement of Mr Nigel Hadgkiss. Mr McBurney comes to the role after nine years in the Victorian Government’s Office of the Chief Examiner. He also held senior positions with the former iteration of the ABCC.
HEDLEY DAVIS NATIONAL INDUSTRIAL RELATIONS COMMITTEE CHAIR
General It has been yet another busy year in the area of industrial relations, which saw the introduction and enactment of a raft of legislative reforms, as well as MBA’s continued focus on highlighting the recidivist conduct of the CFMMEU. It was particularly pleasing to see the Fair Work Amendment (Corrupting Benefits) Act 2017 come into force in September 2017. The Act now makes it an offence to offer, provide to a person or to seek or accept from a person a corrupting benefit. The law also requires the disclosure of certain matters by bargaining agents and registered organisations. This year also saw the departure of both the ABCC Commissioner and Federal Safety Commissioner, with their replacements, Stephen McBurney and Grant Lovelock respectively commencing their tenure in February 2018. MBA has also had significant engagement in the CFMEU/MUA/TCFUA amalgamation proceedings, with a regrettable decision handed down by the Fair Work Commission to approve
Under the leadership of Mr McBurney, the ABCC continues to work towards creating and maintaining stable, fair and just construction sites for all workers and employers. We look forward to seeing further improvements in the administration of the rule of law within our sector spearheaded by Mr McBurney.
Fair Work Amendment (Corrupting Benefits) Act 2017 The Act came into force on 11 September 2017 and implements a number of the Heydon Royal Commission recommendations which make it a criminal offence: • to give a registered organisation, or a person associated with a registered organisation a corrupting benefit; • to receive or solicit a corrupting benefit; • for a national system employer (other than a union) to provide, offer or promise to provide any cash or in kind payment, other than certain legitimate payments to an employee organisation or its prohibited beneficiaries; and • to solicit, receive, obtain or agree to obtain a prohibited payment. The new laws also require bargaining representatives for a proposed enterprise agreement (employers, employer organisations, and unions) to disclose financial benefits that the bargaining
MASTER BUILDERS AUSTRALIA | 37
YEAR IN REVIEW 2017–18
representative, or a person or body reasonably connected with it, would or could reasonably be expected to derive because of a term of the proposed agreement. Penalties for breaches of the new provisions include fines of up to $900,000 for individuals (or $4.5m for Corporations) and/or 10 year’s imprisonment for the giving, receiving or soliciting of a corrupting benefit.
Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 The Act passed the Parliament and received Royal Assent on 14 September 2017 and seeks to tackle unconscionable employment practices of franchisors by boosting penalties for serious contraventions, prohibiting ‘cash back’ arrangements and providing the Fair Work Ombudsman with increased powers.
Fair Work (Registered Organisations) Amendment (Ensuring Integrity) Bill 2017 The Fair Work (Registered Organisations) Amendment (Ensuring Integrity) Bill 2017 (‘Ensuring Integrity Bill’) was introduced in August 2017 and is currently before the Parliament. The Ensuring Integrity Bill remains before the Parliament and seeks to: • Create new provisions to disqualify officials of Registered Organisations from holding or standing for office, if they are deemed to no longer be a ‘fit and proper person’ – this will include union officials who have deliberately broken the law; • Create new provisions to allow the deregistration of registered organisations in the event they are found to have deliberately breached workplace laws; and • Relevantly to the current state of union affairs, establishing a test which requires any proposed merger to be in the public interest.
38 | MASTER BUILDERS AUSTRALIA
Passing the Bill will introduce real consequences for those who break industrial laws, by giving the courts more power to deregister rogue divisions within unions, while ensuring those that do the right thing and uphold the law can continue to look after their members’ interests.
Fair Work Laws Amendment (Proper Use of Worker Benefits) Bill 2017 Since its introduction in September 2017, MBA has continued to lobby the Australian Parliament to pass the Fair Work Laws Amendment (Proper Use of Worker Benefits) Bill 2017 (‘Worker Benefits Bill’). The Worker Benefits Bill responds to a series of recommendations for law reform contained in the Heydon Royal Commission that focus on amendments to the Fair Work, Tax and Corporations Laws. If passed, the Bill will: • Create greater transparency, openness and accountability of fund members; • Impose stronger governance regulations on organisations; • Scrutinise payments to entities that are delivering training and worker welfare services, with the hope of ensuring these funds are used for their proper purpose; • Modify the ability of Enterprise Agreements to mandate payments into particular funds; and • Require all worker entitlement funds to be registered with the Registered Organisations Commission, whilst mandating compliance standards to remain registered (and functioning). The Worker Benefits Bill remains before the Parliament.
Fair Work Amendment (Repeal of 4 Yearly Reviews and Other Measures) Bill 2017 The first iteration of the Fair Work Amendment (Repeal of 4 Yearly Reviews and Other Measures) Bill 2017, introduced in March 2017, sought
YEAR IN REVIEW 2017–18
to remove the requirement for the Fair Work Commission to undertake a comprehensive review of all Modern Awards every 4 years, an amendment which had bi-partisan support. The initial changes proposed in the Bill would also allow the Commission to overlook minor procedural or technical errors when approving enterprise agreements and extended the complaint-handling powers of the Minister of Employment and President of the Commission. Although the existing provisions in the Bill were largely uncontested, the Opposition moved amendments in an attempt to restore penalty rates in the retail and hospitality sectors and nullify the February 2017 penalty rates decision. As a consequence of the amendments, the House of Representatives rejected the amended Bill which is now stalled in the Parliament.
Modern Slavery Bill 2018 In June 2018 the Government introduced the Modern Slavery Bill 2018 which would require large businesses to report on their actions to address ‘modern slavery risks’ in their supply chains. The Bill would require domestic and foreign entities, with an annual revenue of $100 million and who are carrying on business within Australia to submit a ‘Modern Slavery Statement’ every 12 months. As well as identifying any risk of modern slavery in a company’s supply chain, the statement would also need to include information on its structure and operations. The Government proposes that the data would then be used to publish a yearly ‘Modern Slavery Statement’. The Bill was canvassed by the Government late last year, at which time MBA made submissions that the legislation would impose a significant administrative burden on the building and construction industry, with likely flow on effects to both the cost of construction and the business of subcontractors. In those submissions, we noted that due to the nature of contractual relationships within our industry, subcontractors
below the dollar threshold may find themselves carrying the administrative burden the Bill intends to place only on ‘big business’. The Opposition has criticised the Bill for its failure to impose penalties on companies who do not report or take action to reduce or eliminate ‘modern slave labour’ from their supply chains.
Proposed CFMEU/MUA/TCFUA amalgamation In January and February of 2018 MBA, together with the Australian Metals Association (‘AMMA’), filed joint submis-sions and evidence in the Fair Work Commission opposing the amalgamation of the CFMEU/MUA and TCFUA. In an unexpected, yet somewhat-related development, on 19 February 2018 the Victoria International Container Terminal (‘VICT’) filed contempt proceedings against the CFMEU for a breach of Victorian Supreme Court orders made against two union officials in relation to unlawful pickets at a Melbourne dock. Counsel for MBA and AMMA brought the contempt proceedings to the attention of the Commission, because the outcome of the charges may have had bearing on whether the Deputy President could approve the amalgamation. Despite MBA’s and AMMA’s contentions that the Commission was precluded from approving the merger under the Fair Work (Registered Organisations) Act 2009 (‘RO Act’), Deputy President Gostencnik handed down his decision in favour of the CFMEU/MUA and TCFUA’s application, fixing the day on which the amalgamation would take effect as 27 March 2018. MBA and AMMA subsequently filed an application, including written submissions and evidence, and appeared at a hearing before a Full Bench of the Commission in April 2018 to appeal the decision. The grounds of the appeal were that the Deputy President erred in approving the amalgamation while proceedings against the CFMEU remained on foot. At the conclusion of the hearing, the Full Bench reserved its decision.
MASTER BUILDERS AUSTRALIA | 39
YEAR IN REVIEW 2017–18
In the interim, MBA and AMMA sought a stay of the amalgamation until the Full Bench of the Commission had considered the appeal application, so as to avoid the inevitable complexities associated with “unscrambling the merger egg” in the event MBA and AMMA were successful in the appeal proceedings. Despite the submissions of MBA and AMMA, the Commission denied the application to stay the amalgamation and in accordance with Deputy President Gostencnik’s decision, the CFMEU/MUA and TCFUA became the amalgamated entity known as the CFMMEU on 27 March 2018. In June 2018 the Commission handed down its decision within which, regretfully, the Full Bench upheld the conclusion reached by DP Gostencnik, being that there were no proceedings on foot at the time of the amalgamation application that would preclude the Commission from fixing a date for the merger. MBA is carefully reviewing the decision in detail and is seeking advice to consider the most appropriate options available to us moving forward. In a related matter, on 11 April 2018, the CFMEU issued a subpoena upon MBA and AMMA to produce any correspondence between MBA, AMMA and VICT in relation to the contempt proceedings. The contention of the CFMEU in issuing the subpoena being that MBA and AMMA had engineered the filing of the contempt proceedings by VICT for the sole purpose of disrupting the amalgamation. MBA and AMMA both filed objections (together with supporting evidence) to the subpoena and appeared at a hearing before the Victorian Supreme Court on Monday 4 June 2018, with the court reserving its decision.
International Labour Organisation (‘ILO’) The ACTU has lodged a complaint about the ABCC in the ILO. MBA has prepared extensive materials in response to assist ACCI (who sits on ILO) in support of ACCIs contention that the complaint should be dismissed.
40 | MASTER BUILDERS AUSTRALIA
4 Yearly Review of Modern Awards Proceedings remain ongoing with MBA having made several appearances before the Fair Work Commission, including further Full Bench hearings and conferences.
Award-stage review A decision in the matter, with regard to the review of the Building and Construction (General) On-Site Award 2010 and Joinery and Building Trades Award 2010, has yet to be handed down. The Commission, however, has advised a decision should be anticipated within the coming months.
Family and domestic violence clause Further to a decision handed down by the Fair Work Commission in March 2018, which rejected the ACTU’s initial claim to provide paid family and domestic violence leave to all award-covered employees, the Commission has determined that instead employees, covered by all modern awards, should be entitled to unpaid family and domestic violence leave in certain circumstances. The entitlement, being 5 days of unpaid leave, will apply to all employees (including casuals) and will: • Be available in full at the commencement of each 12 month period (rather than accruing progressively during a period of service); • Not accumulate from year to year; • Be available in full to part-time and casual employees (that is, the entitlement is not pro-rated as with other leave entitlements may be); • Not require employees to have accessed any available leaves as a pre-condition to accessing the entitlement; • Require employees to give notice of and advise of the expected period of leave as soon as possible;
YEAR IN REVIEW 2017–18
• Require the employee (if the employer requests) to give evidence that would satisfy a reasonable person that the leave is taken for the specific purpose; and • Establish a requirement for the employer to take steps to ensure confidentiality of the employees reasons for leave, so far as is reasonably practicable.
• the model clause terms; • whether they offend s 55 (instruments cannot exclude NES provisions); and • whether including the draft model term would offend the modern awards objective. The Commission is now considering submissions on the proposed model term and potential variations thereof.
Family friendly work arrangements
Payment of wages
In March 2018, the Fair Work Commission rejected the ACTU’s claim to vary all modern awards to include an entitlement to parttime work or reduced hours for employees with parenting or caring responsibilities. The Commission, however, went on to express a provisional view to incorporate a model term that would facilitate flexible working arrangements for eligible employees (employees with parenting or carer responsibilities).
The Commission is in the process of finalising a ‘payment on termination of employment’ model term which will be inserted in 86 modern awards which are currently silent in respect of the time period within which termination payments are to be made. Submissions will also be sought with regard to those 36 modern awards (including the On-Site Award) which currently contain terms which provide for the payment of wages and other amounts owing to an employee on the termination of their employment. MBA has made submissions in this matter, with respect to the provisional model term, where we have advocated for its inclusion in the On-Site Award but with industry specific amendments.
Following its 26 March decision, the Commission issued a statement inviting submissions on a draft model clause (attached to the statement) about:
MASTER BUILDERS AUSTRALIA | 41
YEAR IN REVIEW 2017–18
TMAA application to vary shift provisions of the On-Site Award In March 2018, the Traffic Management Association of Australia (‘TMAA’) filed an application to vary the civil shift provisions with respect to traffic management workers in the On-Site Award. MBA attended a conference in the Commission with regard to the application, where all other parties in attendance (including the Unions) expressed initial objections to the proposed changes on a jurisdictional basis. In June 2018 the TMAA withdrew its application.
National Training Wage Schedule The Fair Work Commission issued a proposal to delete the existing National Training Wage Schedule and replace it with a reference to a generic schedule within all modern awards, which unfortunately (but not unexpectedly) saw an initial carve-out of the On-Site and Joinery Awards. Those awards excluded from the model approach will be dealt with once the common issue matter has been resolved.
Members of the National Industrial Relations Committee Hedley Davis
Committee Chair and Board Member
Martin Belfield
Queensland Master Builders Association
Sam Condon
Master Builders Association of South Australia (from January 2018)
Emma-Jane Cook
Master Builders Northern Territory
Daniel Hodges
Master Builders Association of Victoria
Cameron Spence
Master Builders Association of the ACT (until January 2018)
Ashlee Berry
Master Builders Association of the ACT (from April 2018)
Ben Walker
Master Builders Association of Tasmania
Kim Richardson
Master Builders Association of Western Australia
Shaun Schmitke
Committee Secretary, Master Builders Australia Ltd
Meetings Held 1 November 2017 – Melbourne 9 March 2018 – Canberra
42 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
National Residential Builders Council Building and compliance regulatory reforms around universal housing and energy stringency are reforms that will impact the cost of housing. Master Builders engaged in forums with government and industry on initial scoping of these reforms. The cost of land is major contributor to housing prices and affordability. Master Builders continues to advocate against increased state and council charges on land through submissions to government and parliamentary forums, including Master Builders submission to the House of Representatives Standing Committee on Economics Parliamentary Inquiry into Impediments to Business Investment.
ROBERT SHAW NATIONAL RESIDENTIAL BUILDERS COUNCIL CHAIR
The key areas of work for NRBC during the 2017–18 financial year came out of a strategic review process that identified the following areas as key priorities: • Land and housing affordability • Taxation • Innovation opportunities • Infrastructure development and cities policy
Land and housing affordability Housing affordability was a key focus in the 2017 Federal Budget with measures being implemented throughout the 2017–18 financial year, including legislative settings for the National Housing Finance and Investment Corporation, Bond Aggregator structure and frameworks and funding arrangements for the National Housing Infrastructure Fund. Master Builders made a submission on draft legislation for these measures to the Treasury Housing Unit: National Housing Finance and Investment Corporation – Investment Mandate Direction 2018 - Exposure Draft.
Taxation Federal taxation, land costs and state taxation and other property related taxes place pressure on housing investment and construction costs. Master Builders advocacy efforts in response to this have included: • Seeking and influencing outcomes on company tax cuts for small business. • Commissioning research on the cost of increasing negative gearing and capital gains tax on housing activity. • Outlining the Master Builders position on the impact of taxes on housing in a submission to the House of Representatives Standing Committee on Economics: Parliamentary Inquiry into Impediments to Business Investment.
Innovation Opportunities The construction industry like other industries is subject to digital and technological disruption. NRBC is committed to working through the challenges and opportunities that when managed well present big opportunities for the housing sector. To do this NRBC is connecting industry leaders with builder members to better understand the challenges and how they might be navigated.
MASTER BUILDERS AUSTRALIA | 43
YEAR IN REVIEW 2017–18
Infrastructure Development and Cities Policy Cities development, urban renewal and investment in infrastructure are key drivers for unlocking housing supply. Advocacy efforts
have been focused around engagement with federal Government on its cities agenda, including the appointment of Master Builders Australia CEO to the Federal Government’s Cities Reference Group.
Members of the National Residential Builders Council Robert Shaw
Council Chair and Board Member
Greg Zuccala
Board Member, Master Builders Victoria
Ralf Dutton
Board Member, Queensland Master Builders Association
Jason Robertson
Master Builders Association of Western Australia
Paula West
Master Builders Association of Western Australia
Leanne Edwards
Master Builders Association of Victoria
Paul Bidwell
Queensland Master Builders Association
Wayne Higgs
Master Builders Association of Tasmania
Tony Streefland
Master Builders Association of Tasmania
Michael O’Donnell
Master Builders Association of NSW
Robert Collings
Master Builders Association of NSW
David Kyburz
Master Builders Association of the ACT
Richard Corver
Master Builders Association of the ACT
Jock Merrigan
Master Builders Association of South Australia
Matthew Pollock
Master Builders Australia Ltd
Alex Waldren
Committee Secretary, Master Builders Australia Ltd
Meetings Held 29 August 2017 – teleconference 13 November 2017 – Sydney, face-to-face 14 March 2018 – Melbourne, face-to-face
44 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
Non-Conforming and Non-Compliant Building Products Committee • ABCB Evidence of Suitability Handbook • State/Territory Audits of NCPs and regulatory action
Parliamentary Committee Review into Non-conforming Building Products Immediately following the establishment of the NCP Committee, the Federal Parliamentary Economics References Committee review into Non-conforming Building Products, handed down its interim report on the review. The parliamentary committee process was established in 2015, after the Lacrosse apartment fire in Victoria.
ROSS MITCHELL CHAIR NON-CONFORMING AND NON-COMPLIANT BUILDING PRODUCTS COMMITTEE
The Non-conforming and Non-compliant Building Products (NCP) Committee was established as a national Committee in August 2017 by the board of Master Builders Australia. The Committee was formed to consider technical, regulatory, legal, political and reputation issues that arise from the use of non-conforming and non-compliant building products and provide expert advice to Master Builders. It is subject to review 12 months after establishment which is outside this reporting period. The key matters considered by the NCP Committee included the following: • Parliamentary Committee Review into Nonconforming Building Products. • Building Ministers Forum expert panel review of the effectiveness of compliance and enforcement systems for the building and construction sector. • 2016 National Construction Code Out of Cycle Amendment
To respond to the release of the report, the NCP Committee established key principles for advocacy and consulted Government on these principles. Master Builders also advocated for the establishment of an industry reference group for building ministers to engage with industry as part of the Building Ministers Forum process.
Building Ministers Forum Expert Panel Review Following the release of the Federal Parliamentary Economics References Committee interim report into Non-Conforming Building Products, the Building Ministers Forum announced a review into the effectiveness of compliance and enforcement systems for the building and construction sector. The review was undertaken by an expert panel and the Building Confidence final report was released in February 2018. The NCP Committee met the expert panel to outline its position and contributed to a Master Builders Australia submission to the review.
2016 National Construction Code Amendment An out of cycle amendment to the 2016 National Construction Code was implemented in March 2017 to address concerns from Building Ministers Forum on NCPs. Master
MASTER BUILDERS AUSTRALIA | 45
YEAR IN REVIEW 2017–18
Builders made a submission to the Australian Building Codes Board consultation process on this amendment and information resources were provided to the Master Builders membership on the changes.
ABCB Evidence of Suitability Handbook The Australian Building Codes Board released an evidence of suitability handbook. It provides practitioners, product manufacturers and suppliers with further detail in understanding how to interpret and apply NCC provisions to ensure that materials, products, forms of construction and designs being used are fit for their intended purpose in accordance with the requirements of the NCC. Members of the NCP Committee are working closely with suppliers, manufacturers and building industry partitioners to test how effectively the product information template can be applied in the real world.
State/Territory Audits All states and territories are progressing audits and are seeking rectification of buildings with aluminum cladding. This is impacting insurance premiums, bank lending and leading to litigation that is ongoing and unresolved that is placing further pressure on the viability of the building and construction sector. Queensland and NSW Governments have introduced new laws to address NCP concerns. The Queensland Government introduced the Building and Construction Legislation (Non-conforming Building Products—Chain of Responsibility and Other Matters) Amendment Act 2017 and the NSW Commissioner for Fair Trading has imposed the first building product use ban under the new Building Products (Safety) Act. The NCP Committee is supporting a coordinated response from Master Builders to action taken by individual states and territories.
Smoke billows from the fire that engulfed the 24-storey Grenfell Tower in west London on Wednesday 14 June, 2017
46 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
Members of the Non-conforming and Non-compliant Building Products Committee Ross Mitchell
Chair and Board Member
Dick Guit
Board Member
Jason Kunkler
Master Builders Association of Western Australia
Angelo Simonetto
Master Builders Association of Victoria
Leanne Edwards
Master Builders Association of Victoria
James Nelson
Queensland Master Builders Association
Paul Bidwell
Queensland Master Builders Association
Dyan Johnson
Queensland Master Builders Association
Robert Collings
Master Builders Association of NSW
Jason Grieves
Master Builders Association of the ACT
Alex Waldren
Master Builders Australia Ltd
Max Rafferty
Master Builders Australia Ltd
Meetings Held 8 September 2017 – Melbourne, face-to-face 26 October 2017 – Sydney, face-to-face 1 February 2018 – teleconference 22 March 2018 – Melbourne, face-to-face There were three face-to-face meetings in the reporting period with an extraordinary meeting in October for the NCP committee to consult with members of the Building Ministers Forum, expert panel commissioned to review improving the effectiveness of compliance and enforcement systems for the building and construction sector across Australia.
MASTER BUILDERS AUSTRALIA | 47
YEAR IN REVIEW 2017–18
48 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
Training • Reaffirm the need for a national Vocational Education and Training (VET) system that boosts skills and creates jobs • Acknowledges the contribution of the building and construction industry to skills development and employment contribution both within and related to the sector, and the risks more broadly to the economy and labour market if projected shortages are not addressed • Focus on measures that facilitate greater jurisdictional consistency in VET and an increased focus on quality learning outcomes
TIM MEAD NATIONAL TRAINING ADVISORY COMMITTEE CHAIR
As one of the key growth sectors of the economy, the building and construction industry is the largest employer of skilled tradespeople in the Australian economy with approximately two thirds of the workforce employed in skilled roles. The Department of Employment projects that the industry will grow by approximately 120,000 people over the next five years. In contrast to many areas of the economy, one of the biggest risks to the projected future growth and contribution of the industry is a shortage of skilled labour. If projected workforce needs are not met, there will be significant consequences that will manifest themselves in various ways including increased construction costs to governments, community and consumers, project delays and adverse impacts on the domestic workforce skills base with long term de-skilling.
• Assign significant funds for a targeted campaign to elevate the status of VET and a trade career in terms of community and teacher perceptions • Determine that the building and construction industry represents a special case in terms of future economic and skills growth potential, while examining the need for industry specific skills development and training programmes • Implement a broader systemic review of VET to determine where reform is necessary, commencing with a targeted examination of blockages and delay in the current system. The review should be conducted with the aim of ensuring industry is the key driver of VET initiatives and determining future skills needs • Focus on initiatives that reduce the regulatory burden and VET compliance costs for training providers, employers and educators and recognise the status of Industry RTOs as distinct from other ‘non-public’ providers.
Policy and advocacy
Pre-apprenticeship Programme
Key aspects of Master Builders’ policy and advocacy in workforce skills and training over the past year have focussed on the need for governments to:
In the previous year 2016–17, Master Builders signed a funding agreement with the Australian Government to pilot alternative apprenticeship delivery models.
MASTER BUILDERS AUSTRALIA | 49
YEAR IN REVIEW 2017–18
Anita Host and Dan Perkins, MBA immediate Past President with students at the Bunbury South Regional TAFE, WA
The objectives of the Master Builders Australia’s Apprenticeship Training – Alternative Delivery Pilot Project were to trial pre-apprenticeship delivery and support arrangements that sought to:
• Pre-apprenticeship Training delivery – face-to-face training delivered across four states in South Australia, Queensland, New South Wales and Western Australia with 233 students enrolled in training
• Modernise the current national training system
• Construction Entry Readiness Tool Development of pre-apprenticeship testing modules
• Enhance pathways into employment for apprentices • Increase the completion rate of apprenticeships • Improve candidate selection processes • Embed mentoring and language, literacy and numeracy to support pre-apprenticeship completions • Improve industry validation of training and learning outcomes • Improve quality delivery and consistency in training delivery • Contribute to an evidence base, which informs future policy development and funding settings. The Project deliverables included the following components:
50 | MASTER BUILDERS AUSTRALIA
• Resources - Development of learner resources and trainer guides to support innovative approaches to delivery which support greater consistency in training delivery across the country at Australian Qualifications Framework (AQF) level two • RTO Quality Indicators – Research and development of RTO benchmarks for quality training and assessment for consumers, parents, students and employers • Independent Evaluation – of the preapprenticeship training delivery projects. The outcomes and recommendations contained in the independent review of the Project will feed into a review of Master Builders’ employment and training policy review to be undertaken in the 2018–19 year.
YEAR IN REVIEW 2017–18
Construction Training Representation Throughout the year, Master Builders continued to be well represented on key training decision making committees. Master Builders held the chair role of the Construction Industry Reference Committee, the committee responsible for the development of national building and construction qualifications. In addition, Master Builders also held the chairmanship into the review of the Certificate I and II in Construction and Construction Pathways qualifications and the Certificate III in Carpentry and Joinery qualifications reviews.
Master Builders also maintained its directorship of the Construction and Property Services Industry Skills Council (CPSISC), taking on the chairmanship of this organisation in February 2018 while continuing to maintain its directorship on the Australian Brick and Blocklaying Training Foundation (ABBTF). Master Builders Australia takes advice from members of the National Training Advisory Committee in developing policy that it then takes further through the above mentioned committees and boards.
Members of the National Training Advisory Committee Tim Mead
Committee Chair and Board Member
Adam Profke
Queensland Master Builders Association
Christine Stone
Master Builders Association of South Australia
Wendy Tengstrom
Master Builders Association of the ACT (until 03 November 2017)
Liz Nair
Master Builders Association of the ACT (from 08 January 2018)
Jess Sethi
Master Builders Association of Western Australia
Corrie Williams
Master Builders Association of Victoria
Ottmar Helm
Master Builders Association of Tasmania
Darin Grace
Master Builders Association of New South Wales
Robert Wilson
Committee Secretary, Master Builders Australia Ltd
Meetings Held 20 July 2017 – teleconference 16 August 2017 – teleconference 10–11 October 2016 – Adelaide, face-to-face 11 April 2018 – teleconference 9 May 2018 – Sydney, face-to-face 19 June 2018 – teleconference
MASTER BUILDERS AUSTRALIA | 51
YEAR IN REVIEW 2017–18
52 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
Work Health and Safety industrial relations laws creates confusion and complexity, with the concept of workplace safety being often sullied by unions who use safety as a tactic to achieve industrial outcomes. MBA continues to recognise the achievements of its members, many of whom are implementing WHS systems and initiatives that are delivering improved safety outcomes on building sites every day.
SWA 2018 Review of the Model WHS legislation
CRAIG EDMUNDS NATIONAL WORK HEALTH & SAFET Y COMMITTEE CHAIR
MBA is pleased to note that WHS statistics continue to demonstrate improvements in our sector. Recent figures released by Safe Work Australia (‘SWA’) show that since 2003, workrelated fatalities have continued to steadily decrease, down by 47 percent since the peak in 2007. The statistics also demonstrate a consistent decrease in the number of claims made for serious injuries. Of course, any injury or fatality is always one too many and improving safety outcomes must be a constant aim for all workplaces in the building and construction sector. Continued improvements in WHS, however, can only occur within a policy framework that focuses on practical safety outcomes where a safety oriented workplace culture and individual responsibility is prioritised, rather than a focus on paperbased compliance. Reasonable balanced, practical and nationally consistent WHS regulation is essential in securing better safety outcomes. In addition, the overlap between WHS and
There are a number of legislative reviews and inquiries currently on foot in relation to WHS. The most significant of these is SWA’s 2018 Review of the Model WHS legislation. In May 2018, MBA filed a comprehensive submission as part of the review. The Review was conducted by former head of WorkSafe SA, Marie Boland. For participants in the BCI, MBA submitted that our concerns centred around a number of key elements, being: • Determining the source of WHS duty or obligation and the status of materials that either outline a duty or obligation or purport to outline a duty or obligation; • Uncertainty about regulator enforcement and compliance processes; • An increase in the extent to which WHS law and obligations differ between jurisdictions; • The use of WHS for unrelated purposes; and • Ensuring a practicable and common-sense approach is taken to the nature, application and enforcement of WHS duties and obligations. Ms Boland’s report is due to deliver her report in December 2018.
Review of WHS laws in the construction sector In addition to the Model WHS framework review, Ms Jane Hall, Partner from law firm Seyfarth Shaw, has been appointed by the Department
MASTER BUILDERS AUSTRALIA | 53
YEAR IN REVIEW 2017–18
of Jobs and Small Business to undertake a review of WHS laws in the construction sector. MBA met with Ms Hall and in filed a comprehensive submission in May 2018 to the review which had a much narrower scope than the broader SWA review, as it was limited to aspects of the WHS framework that deal with the three major causes of injury in the BCI. Ms Shaw is due to hand down her report in the coming months.
Senate Inquiry into the prevention, prosecution of industrial deaths in Australia On 26 March 2018, the Senate referred an inquiry into the framework surrounding the prevention, investigation and prosecution of industrial deaths in Australia to the Education and Employment References Committee. MBA filed a submission to the inquiry in June 2018, highlighting the following key points: • Wherever possible, matters that are ostensibly WHS are homed within the WHS framework and that it is clear that this is the primary and overriding source of obligation wherever a conflict arises; • The Inquiry should examine and identify the extent to which jurisdictions are diverging from the model WHS framework and recommend strategies for the Commonwealth Government to pursue in arresting such divergence; • Allocation of regulatory, investigatory and enforcement resources on the basis of industrial risk and in accordance with historical data is essential to improving industrial outcomes; • A nationally consistent regime for reporting requirements of regulators should be established to facilitate increased awareness and understanding of the safety risks and associated issues within the BCI; • So far as is possible, avenues for exploitation of the WHS framework are closed and any recommendations for change do not create further avenues for such conduct; and
54 | MASTER BUILDERS AUSTRALIA
• The introduction of industrial manslaughter provisions into the Model WHS Act (or any other legislation) is unwarranted as the existing penalty regime is appropriate. It is anticipated that MBA will be called to appear before the Committee to provide oral evidence sometime in August 2018.
Asbestos Safety and Eradication Agency (‘ASEA’) The Asbestos Safety and Eradication Agency (‘ASEA’) has convened a number of meetings in the last financial year of the Building and Construction Demolition Sector (‘BCDS’) of which MBA is a member. The BCDS Committee provides advice and feedback to the agency on issues relevant to asbestos management and control. As a member of the BCDS, MBA will continue to work with ASEA to ensure a targeted approach to dealing with asbestos and will play an active role in the revision of its National Strategic Plan in the latter part of this year. MBA also attended the Asbestos Safety and Eradication Summit, held in Canberra in November 2017.
Safe Work Australia In addition to its submissions to SWA’s review of the model WHS laws, the National Office also continues its ongoing engagement with SWA, including detailed involvement regarding reviews of several SWA Model Codes of Practice relevant to construction.
Office of the Federal Safety Commissioner (‘OFSC’) In February 2018, Mr Grant Lovelock commenced the role of Federal Safety Commissioner. The National Office has met with Mr Lovelock who also addressed MBA’s meeting of the National Work Health and Safety Advisory Committee in March 2018. MBA attended two meetings of the Office of the OFSC’s Industry Reference Group (‘IRG’) this
YEAR IN REVIEW 2017–18
financial year. The IRG, made up of a number of companies accredited under the OFSC’s scheme, convenes regularly to provide feedback directly to the OFSC on its functions and to discuss regulatory matters affecting accredited building companies. At the most recent meeting, the OFSC provided data which found that more than 80 percent of accredited companies stated the scheme had improved their safety practices and culture. The IRG also heard that after 3 years of accreditation, more than half
of the companies had reduced their lost time injury frequency rates and workers compensation premiums. The OFSC also provided an update on its new function which now includes auditing of systems to ensure compliance with the NCC. The meeting provided an opportunity to farewell Mr Alan Edwards who will finished in the role in February 2018 and to introduce new FSC Mr Grant Lovelock. MBA thanks Mr Edwards to his contribution to the sector and wishes him all the best in his future endeavours.
Members of the National Workplace Health and Safety Committee Craig Edmunds
Committee Chair and Board Member
John Darcy
Master Builders Association of Victoria
Melanie Roberts
Queensland Master Builders Association
Philip Edwards
Master Builders Association of the ACT (until April 2018)
Ashlee Berry
Master Builders Association of the ACT (from April 2018)
Kim Richardson
Master Builders Association of Western Australia
Ashlee Berry
Master Builders Association of the ACT (from April 2018)
David Solomon
Master Builders Association of NSW
Chris Ginever
Master Builders Association of South Australia
Shaun Schmitke
Committee Secretary, Master Builders Australia Ltd
Meetings Held 2 November 2017 – Melbourne 8 March 2018 – Canberra
MASTER BUILDERS AUSTRALIA | 55
PROJECTS
YEAR IN REVIEW 2017–18
Women Building Australia With women currently making up only 11 percent of the industry’s total workforce and only 1 percent of building trades, the industry is missing out on the skills and talents of half the population. Women Building Australia is about making this happen by promoting the opportunities for women and employers and the information and support that they need.
Attendance figures Over a total of 8 days, Women Building Australia had a direct and positive impact on over 40,000 visitors across Sydney NSW. The audience of the Exhibitions were school students, teachers, career advisors, parents and the general public.
Pilot Program Objectives • Promote the building and construction industry to school students and female jobseekers • Encourage women to enter into and lead successful careers in the male-dominated building and construction industry • Educate women on career opportunities and pathways available to them in the building and construction industry
Outcome highlights
Tasmania • 7 Workshops in Tasmania for female school students and jobseekers have been completed. Alarmingly, neither group knew of the career opportunities or the fact that the industry wants women. • There was great difficulty in attracting students and jobseekers to these events, regardless of the advertising and marketing protocols used in the lead up to the events.
NSW • ‘Women Building Australia’ exhibited at the two largest career exhibitions in NSW. The stand was highly interactive and hands on for all female students, parents and careers advisers, as well as the general public. This new approach proved to be an enormous success and was much more effective than the workshops completed in Tasmania.
58 | MASTER BUILDERS AUSTRALIA
School students at the Women Building Australia stand at the NSW Careers Exhibition
YEAR IN REVIEW 2017–18
Mentoring The National Mentoring program has been highly successful. Huge interest has been shown by future potential mentors and mentees to participate in the mentoring program in 2019, should it continue.
“
This programme has helped me grow in confidence within myself. My mentor has helped me realise I have no reason to doubt my achievements or capabilities, sometimes you just need the right support to get to where you want to go
“
Mentee Testimonial
Denita Wawn (CEO MBA) handing out information to school students at the Women Building Australia stand at the NSW Careers Exhibition
MASTER BUILDERS AUSTRALIA | 59
YEAR IN REVIEW 2017–18
60 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
Pre-apprenticeship Project
Anita Host and Dan Perkins, MBA immediate Past President with students Ben Jetta, 17, Georgia Johnson, 16 and Chyann Smith, 15
Master Builders Australia in partnership with South Regional TAFE Western Australia delivered a pre-apprenticeship training programme for 27 local Bunbury students in October to December 2017. Students were drawn from across five local secondary schools from years 10–12. The programme was part of a ‘taster’ project to give young people an opportunity to experience the industry with training delivered to Master Builder standards. Students had opportunities to participate in either carpentry, bricklaying or painting and decorating immersive experiences.
MASTER BUILDERS AUSTRALIA | 61
THE NEXT 3 YEARS
YEAR IN REVIEW 2017–18
3 Year Improvement Strategy Mission: The preeminent advocate for the building and construction industry
THE GO-TO ORGANISATION
BUSINESS SUCCESS
MEMBERSHIP VALUE
HIGH PERFORMING TEAM
GOALS BY 30 JUNE 2020 We are the “go to” building and construction organisation by government and media
We have enhanced the environment for the industry to achieve business success
We are providing excellence in membership services with accountability for member investment
We provide robust industry leadership through a highperforming team
HOW WE WILL SUCCEED Positive reputation building by being proud of our brand & our industry
Comprehensive Communications Strategy and Delivery that is all embracing from both an internal and external perspective
Embracing a team culture through a holistic approach within the National Office and respecting the independence and interdependence of the federated model
KEY IMPROVEMENT PROGRAMMES • Clarity of our role and scope • Proactive, extensive and integrated external Communications strategy • Federal Election Campaign preparation and activation
• Advocacy of tangible solutions that have demonstrated value for industry success • Focus on our core objectives of ensuring positive outcomes for the building and construction industry
• Successful delivery of aligned strategic outcomes • Consistent engagement • Delivery of relevant national services • Best practice corporate governance • Sound financial management
• Team collaboration • Within the National Office and between the National Office and Member Associations • National Office staff have a shared responsibility but with individual accountability • Attract and retain the best people
CRITICAL ENABLERS TECHNOLOGY Enabling technology to effectively deliver an integrated digital capability to execute our goals
PEOPLE
GOVERNANCE
FINANCE
Organisational capability, people development and performance management
Evolve governance and risk frameworks and capability to support our improvement strategy
Ensure our financial position can drive performance and support increasing output.
64 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
3 Year Improvement Plan Implementation The “Go-To” Organisation for the Building and Construction Industry Our members expect us to be the “go-to” organisation for the building and construction industry on national issues.
WHAT DOES SUCCESS LOOK LIKE ON 30 JUNE 2020 • Government, media and the public know who we are, who we represent and what are our key national issues • We are consulted by the Federal Government on all issues within our remit • We are represented on all relevant Government committees, boards etc. where there is a capacity to have representation • We are the first port of call by the media on all our issues • We have conducted a Federal Election Campaign that has had an impact.
KEY MEASURES OF SUCCESS • We have undertaken a sustained brand campaign about the industry and Master Builders Australia • Our reputation has improved since baseline results in 17/18 • Our representation on relevant Government Committees/Boards etc. has increased from baseline in 17/18 • We are more prevalent in media commentary particularly in media outlets of substance • Our Federal Election Campaign has been extensively viewed
WHAT WILL WE DO KEY IMPROVEMENT PROGRAMMES FY 2017–18 • Development of agreed policy statements
FY 2018–19 • Develop and implement two proactive policy campaigns.
• Review of organisation process on policy development and the way in which we consult and collaborate on tactics.
FY 2019–20 • Develop and implement two proactive policy campaigns • Review of policy development and advocacy process
• Clearly define roles of National Office and Member Associations on COAG matters. • Develop and implement a proactive policy campaign.
CRITICAL ENABLERS • Staff training on best practice in policy and advocacy • Right resourcing structure to effectively meet targets
MASTER BUILDERS AUSTRALIA | 65
YEAR IN REVIEW 2017–18
Business success through real outcomes The National Office needs to provide demonstrated added value for business success for the building and construction industry
WHAT DOES SUCCESS LOOK LIKE ON 30 JUNE 2020 • Tangible and clear policy solutions have been advocated on behalf of the industry. • The development and advocacy of policy has occurred through a two-way communications process throughout the organisation. • Positive policy outcomes have been achieved that have practical and meaningful benefit within industry.
KEY MEASURES OF SUCCESS • Policy has been developed through a consensus approach. • Policy outcomes provide demonstrated value to the industry. • Policy has been accepted and implemented by Government
WHAT WILL WE DO KEY IMPROVEMENT PROGRAMMES FY 2017–18 • Development of agreed policy statements
FY 2018–19 • Develop and implement two proactive policy campaigns.
• Review of organisation process on policy development and the way in which we consult and collaborate on tactics.
• Review of policy development and advocacy process
• Clearly define roles of National Office and Member Associations on COAG matters. • Develop and implement a proactive policy campaign.
CRITICAL ENABLERS • Staff training on best practice in policy and advocacy • Right resourcing structure to effectively meet targets
66 | MASTER BUILDERS AUSTRALIA
FY 2019–20 • Develop and implement two proactive policy campaigns
YEAR IN REVIEW 2017–18
Membership value WHAT DOES SUCCESS LOOK LIKE ON 30 JUNE 2020 • Successful delivery of aligned strategic outcomes • Member Associations agree that there is value in membership • Best practice in business operations & corporate governance
KEY MEASURES OF SUCCESS • Improvement of results each year from a new membership survey with benchmark from December 2017.
WHAT WILL WE DO KEY IMPROVEMENT PROGRAMMES FY 2017–18 • Review of Policy Committees and their interaction with the Board and Member Associations • Constitutional Review
FY 2018–19 • Review of Publications • Membership survey December 2018 • CEO attendance at Member Association Boards
• Update of Forecasts and Survey
FY 2019–20 • Membership Survey December 2019 • CEO attendance at Member Association Boards • Operational Review • Development of new Strategic Plan and 3-year business plan
• Reactivate Communications Working Group • Introduce membership survey to occur at end of each calendar year • Review of National Conference, National Awards and International Division • CEO attendance at Member Association Boards at least once a year
CRITICAL ENABLERS • Effective and efficient communication protocols between the National Office and Member Associations
MASTER BUILDERS AUSTRALIA | 67
YEAR IN REVIEW 2017–18
Past President’s
1891
C Midson, QLD
1928
J McIntyre, NSW
1892
W M Sesley, VIC
1929
C Cooper, TAS
1894
G P Jones, NSW
1930
C W Arnott, WA
1898
D Mclntosh, VIC
1931
J W Greene, QLD
1900
J M Pringle, NSW
1932
J G Emmett, SA
1902
A Midsan, QLD
1933
A Douglas, VIC
1904
J Swanson, VIC
1934
J T Turner, NSW
1906
T Loveridge, NSW
1935
Sir Joseph Totterdell, WA
1909
D A Swanson, VIC
1936
H Cheetham, QLD
1911
W M R Juster, QLD
1931
J W Chalmers, VIC
1913
J Wall, NSW
1938
F Wilson, NSW
1917
F A Jeffrey, SA
1939
E C W Martin, SA
1920
C Langford, VIC
1940
W L Brine, WA
1923
F E Munro, NSW
1941
J Hutchinson, QLD
1925
M R Hornibrook, QLD
1943
H G White, VIC
1926
C H Martin, SA
1944
C F Gage, NSW
1927
L Thompson, VIC
1945
A V King, SA
68 | MASTER BUILDERS AUSTRALIA
YEAR IN REVIEW 2017–18
1946
H A Doust, WA
1993–94
A Stuart, NSW
1947
L C Burne, VIC
1995–96
R A Doubikin AM, WA
1948
J G Hargraves, QLD
1997–98
P A Doran, NCL
1949
C G Davis, NCL
1999–2001 J C Hutchinson, QLD
1950
W Essery, SA
2001–03
J Haskins, ACT
1951
J B Hawkins, WA
2004–05
R Sputore, WA
1952
C R Hansen, VIC
2006–07
P Ibbott, TAS
1953
T M Lipscombe, TAS
2008–10
S Beynon, NSW
1954
G H Day, QLD
2011–13
P Kennedy, SA
1955
S D C Kennedy, NSW
2014–15
T Evans
1956
R J Nurse, SA
2016–17
D Perkins
1957
W Fairweather, WA
1958
C J McDougall, VIC
1959
A B Moore, TAS
1960
C P Hornick, QLD
1961
W J Bryant, NSW
1962
H Wilckens, SA
1963
K G Hooker, VIC
1964
V T Edwards, WA
1965
R R Neville, TAS
1966
D C Watkins, QLD
1967
C G Archer, NSW
1968
R A O’Neill, SA
1969–70
R S Prentice, VIC
1971
J S Box, QLD
1972–73
J A Morrisey, NSW
1974
J L Doust AM, WA
1975–76
F A Hansen, VIC
1977–78
F E Crowle AM, SA
1979–80
W R H Keast, VIC*
1981–82
R L Greaves AM, WA
1983–84
C W Martin AM, NSW*
1985–86
K L Turley AM, VIC
1987–88
C K Fritz, QLD
1989–90
C I Barclay, QLD
1991–92
J R Coghlan AM, VIC
MASTER BUILDERS AUSTRALIA | 69
YEAR IN REVIEW 2017–18
Life Members 1959
Sir Manuel Hornibrook Kt. OBE*, QLD
1960
C G Davis*, NSW
1960
F M Taylor CBE*, NSW
1961
W L Brine*, WA
1962
T W Morris*, VIC
1963
T M Lipscombe*, TAS
1963
G H Fricker*, SA
1965
W J Bryant*, NSW
1965
K C McGrefor*, NSW
1969
R A O’Neill*, SA
1972
Sir Albert Jennings Kt*,VIC
1974
V T Edwards*, WA
1976
F O Watts CBE*, VIC
1980
J S Box MBE*, QLD
1980
F E Crowle AM*, SA
1980
Dr A A Cooper OBE, NSW
1982
M N Mitchell, VIC
1983
W R H Keast*, VIC
1987
R L Greaves AM, WA
1987
N Sarah, SA
1987
K L Turley AM*,VIC
1988
C W Martin AM*, NSW
1988
M O’Brien, VIC*
1992
C K Fritz, QLD
1992
H R Holdsworth*, VIC
1994
J R Coghlan AM*, VIC
1994
B A Frost, NSW
1997
R Doubikin AM, WA
2006
J Haskins, ACT
2013
R Barrett OAM, ACT
70 | MASTER BUILDERS AUSTRALIA