2009 - 10 Master Builders Association of the ACT Annual Report
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Transcript of 2009 - 10 Master Builders Association of the ACT Annual Report
COMMERCIAL | PROFESSIONAL | CIVIL | RESIDENTIAL | SUB CONTRACTORS
ANNUAL REPORT 2010
Master Builders Annual Report | ACT 2
2009/10 Executive & Peak Council:
• RossBarrett–President&PeakCouncilChairman
• SimonButt–Treasurer&PeakCouncilMember
• SamDeLorenzo–Chairman,CommercialSectorCouncil&PeakCouncilMember
• StephenWise–Alternate,CommercialSectorCouncil&PeakCouncilMember
• PeterMiddleton–Chairman,CivilSectorCouncil&PeakCouncilMember
• MichaelDeSimone–Alternate,CivilSectorCouncil&PeakCouncilMember
• PeterFairburn–Chairman,Subcontractors&SuppliersSectorCouncil&PeakCouncilMember
• GraceFerreira–Alternate,Subcontractors&SuppliersSectorCouncil&PeakCouncilMember
• HansSommer–Chairman,ProfessionalSectorCouncil&PeakCouncilMember
• RobPurdon–Alternate,ProfessionalSectorCouncil&PeakCouncilMember
• AndrewKerec–Chairman,ResidentialSectorCouncil&PeakCouncilMember
Other Peak Councillors:
• MarkBauer-PeakCouncilMember,CommercialSector
• MichealEnsor-PeakCouncilMember,CommercialSector
• ValdisLuks-PeakCouncilMember,CommercialSector
• DavidOliver-PeakCouncilMember,CommercialSector
• JohnWilson-PeakCouncilMember,Suppliers&SubcontractorSector
• RichardCorver-PeakCouncilMember,ResidentialSector
EXECUTIVE & PEAK COUNCIL
Master Builders Annual Report | ACT 3
CONTENTSExecutiveCouncil ....................................................................................................................................2
Presidents,ExecutiveDirectors,HonoraryMembers&LifeMembers ..................................................4
IndustryRepresentation ..........................................................................................................................5
President’sreport ....................................................................................................................................6
PeakCouncilreport .................................................................................................................................7
ExecutiveDirector’sreport ......................................................................................................................8
Treasurerreport .....................................................................................................................................10
MasterBuildersAustraliareport ............................................................................................................11
SectorCouncilreports .........................................................................................................................12
DirectorIndustrialRelationsreport .......................................................................................................16
OccupationalHealth&Safety ..............................................................................................................17
MasterBuildersFidelityFund&SkillsCentreBuildingFundreport .....................................................18
MasterBuildersGroupTrainingreport ..................................................................................................19
2010MasterBuilders&BoralExcellenceinBuildingAwards ..............................................................20
2010Events ...........................................................................................................................................22
2009–2010FinancialReport ................................................................................................................24
MembershipAnniversaries ....................................................................................................................31
Master Builders Annual Report | ACT 4
1949-1954 FJWatters
1954-1956 DCSmith
1956-1958 JBKennedy
1958-1959 CBurrows
1959-1960 FASomes
1960-1962 PRArmstrong
1962-1963 THBlow
1963-1965 GAAnderson
1965-1967 CFMoore
1967-1969 LVO’Hara
1969-1971 ARMarr
1971-1973 ACWilliams
1973-1975 WIPlant
1975-1977 FJHegerty
1977-1977 WIPlant
1977-1978 GAJones
1978-1980 FJQuinn
1980-1982 FJMarr
1982-1983 CGustavson
1983-1984 JPfeiffer
1984-1986 JKHindmarsh
1986-1987 CTSpring
1987-1988 MEMilne
1988-1989 JJHanrahan
1989-1991 RWinnel
1991-1993 KJBromfield
1993-1998 JAHaskins
1998-1999 TJRodgers
1999-1999 JAHaskins
1999-2001 SJPinter
2001- RDBarrett
HISTORY
1981 THO’Connor
1984 LVO’Hara
1984 FJQuinn
FJMarr
1993 RWinnel
1995 PJMurphy
1998 JAHaskins
2002 JHHailey
2007 RDBarrett
1964-1980 DAndrew
1980-1983 PMBerents
1983-1986 EMLonie
1986-1987 FJGillingham
1987-1989 RWinnel
1989-1990 GWilliams
1990-1998 BDBryant
1998-2007 DPDawes
2007- JRMiller
1989 DAndrew
2007 DPDawes
2009 FJGillingham
PRESIDENTS
LIFE MEMBERS
EXECUTIVE DIRECTORS
HONORaRy MEMBERS
Master Builders Annual Report | ACT 5
ACT
ABCBCommercial&ResidentialEnergyAdvisoryGroup
ACTSkillsCommission
ACTTertiaryTaskforceReview
ACTWorkSafetyCouncil
ACTWorkSafeConstructionIndustryAdvisoryGroup
ACTPLAAsbestosAdvisoryBoard
ACTPLABuildingRegulationsAdvisoryGroup
ACTPLACommercialAdvisoryCommittee
ACTPLAIndustryMonitoringGroup(Planning)
ACTPLAPlanning&DevelopmentCodes
ACTPLAResidentialAdvisoryCommittee
ACTPLASustainabilityInitiativesProgressGroup
BuildingQualityReview
CanberraBuildersSupplyMerchantsAssociation
Construction&PropertyServices(Constructionqualifications)
ConstructionIndustryAdvisoryGroupontheOH&SHandbook
ConstructionIndustryForumonBestPracticeWaterUse
ConstructionIndustryLongServiceLeaveAuthority
ConstructionIndustryTrainingCouncil
OccupationalHealth&SafetyCouncil(Ministerial)
ProcurementAdvisoryCouncil
TrainingFundAuthority
MASTER BUILdERS Industry Representation
UniversityofCanberra-BachelorofConstructionManagementAdvisoryCommittee
UniversityofCanberra-Building&ConstructionReferenceGroup
VocationalEducationTrainingAdvisoryGroup
WorldSkillsACT
CanberraBusinessCouncilConsultativeCommittee
CanberraBusinessCouncilPlanningInfrastructureTaskforce
EastLakeCommunityReferenceGroup
NewEmploymentOpportunities
IndustryReferenceGroup
NATIONAL
MasterBuildersAustralianBoard
AuditCommittee
ConstitutionalReview
ContractCommittee
ExecutiveDirector’sAdvisory
IndustrialRelations
Membership&MarketingCommittee
NationalResidentialBuildersCouncil
NationalTrainingAdvisoryCommittee
OH&SCouncil
CCFCEOCommittee
CCFNationalBoard
MasterBuildersarerepresentedonthefollowingIndustrybodiesintheACTandNationally.
Master Builders Annual Report | ACT 6
ThislastyearhasgenerallybeenagoodoneforthebuildingandconstructionindustryandforourMasterBuilders.TheACTeconomyhasperformedwell,infrastructurespendingcontinuedatahighlevel,andourAssociation’sfinancialpositionissound.Theonesignificantdisappointmenthasbeenthecontinuingimbalancebetweentheresidentiallandsupplyandthedemandwhichisstillhavinganadverseeffectonmanyofourmembers.
AsthepeakindustryorganisationintheTerritorywehavecontinuedtohaveastrongvoiceatalllevelsofinfluence.Ultimatelyweareaboutrepresentingourmembers’interestssoitisimportantthatwecontinuetoconductourselvesappropriately.IhavebeeninvolvedwiththeMasterBuildersformanyyears.Forallofthistime,ithasbeenacontinuingfeatureofourorganisationthatweplayaninstrumentalroleinnotonlyrepresentingourmembersbutalsoinassistingthemtoincreasetheirknowledgebase.OurabilitytoinfluencethedebateandpolicyoutcomesintheareasofourprioritiesisnotonlyofsignificantimportancetoourmembersandtheirbusinessesbutalsotoourindustryandtotheACTeconomyoverall.Ibelieveweareattheforefrontineducatingandinformingourmembersoftheeverchangingissueswhichconfrontourindustry.
John’sreporttotheAGM,andmyPeakCouncilreportgivedetailsofdevelopmentssincethelastmeetingandthefinancialreportsaretheretoberead.SoIconcludethisbriefreportbytakingtheopportunitytoexpressmysincerethankstoalloftheMasterBuildersstafffortheircontributiontoourorganisationandIalsothankthosememberswhovolunteertheirtimetositonourboardsandcommitteestohelpprogresstheissuesofourmembersandourindustry.
TheyearaheadwillpresentuswiththeusualchallengesplussomeunexpectednewonesbutIamconfidentthattheMasterBuildersiswellplacedtomeetthem.Sooverall2010-11shouldbeanothergoodyearforourindustry.
Ross Barrett �President
PRESIdENT
Master Builders Annual Report | ACT 7
MembersofthePeakCouncilhavebeenconfrontedwithaminefieldofissuestoconsiderandchangefoistedonthebuildingandconstructionduringthe2009-10financialyear.Manyoftheissuesandchangehavecomeviabothlevelsofgovernment,federalandterritory.Someoftheissueshavealsoarrivedfromwithintheindustry.
Themajorissuethathasarrivedfromwithintheindustryhasbeenrelatedtothechargesofpoorqualityofbuildingwork.ThePeakCouncilwasinvolvedintheMasterBuilderssubmissiontotheACTGovernmentforumheldwithindustryandconcernedbuildingownersrepresentatives.Whilsttherewasagreatdealofnegativepublicitysurroundingthismatterduringtheyear,theopportunitytoworkshoptheissueandprovideaconsideredandmeasuredresponsebacktothegovernmentplacedMasterBuildersACTinastrongpositiontohelpimplementchange.Itisimportanttonotethatnotalloftheproblemssurroundingqualityofbuildingworkemanatedfromindustry.
TheCouncilalsopaidcloseattentiontothesignificantchangesthatweretakingplaceontheindustrialrelationsfront.Awardmodernisation,thenewFairWorkActandconsiderationaboutthefutureoftheAustralianBuildingandConstructionCommissionwereallimpactingonlocalindustryandinputwasprovidedbyCouncilmembers.TheroleoftheFederalSafetyCommissionerandauditingarrangementswerealsoconsideredbyPeakCouncilandprovidedtheDirectorofIndustrialRelationswithinformationtotaketonationalmeetingswherethesecriticalissueswerebeingdiscussedandwherepolicyisbeingdeveloped.
ThemembersoftheCouncilalsodeliberatedonmattersrelatingtochangestotheACTWorkSafetyActinadditiontodiscussingproposedharmonizationofOccupationalHealthandSafetylawsacrossAustralia.WithharmonisationproposedforaJanuary2012implementation,anumberofmattersarestilltoberesolved.AnothermajorchangeforlocalindustryandonethatthePeakCouncilhadinterestandinputonwastheimplementationoftheSecurityofPaymentslegislation.MasterBuildersACTwascalledonforinputonanumberofoccasionsduringthepreparationandimplementationofthenewAct.
Furtherplanningchanges,landreleaseandtrainingwerealsocoveredinPeakCouncilthisfinancialyear.TheCouncilalsocontinueditsroleasthefinalapprovalbodyfornewmembersoftheAssociation.
Likeallofourcommitteesandcouncils,thePeakCouncilismadeupofverybusypeopleandonbehalfofallofthemembersofMasterBuildersACT,Ithankmembersdeeplyfortheirinterestandwonderfulcontributiontothecontinuedwellbeingofourindustry.
Ross Barrett �Chair
PEAK COUNCIL
Master Builders Annual Report | ACT 8
Instarkcontrasttothemoodthatbesettheindustryin2008-09withtheonsetoftheworldfinancialturmoilemanatinglargelyfromtheUS,thepastfinancialyearprovidedaboostthatwasnotentirelyexpectedbutmostwelcome.Thereisaraftoffinancialdatathatsupportstheimprovedpositionandthishasbeenreflectedintheworkloadexperiencedbymostmembers.Thekeychallengeistoseethisactivitycontinueoverthenextfewyearsandbeyond.
InreviewingtheactivitiesoftheAssociationoverthepastfinancialyear,therehavebeenmanyareasinwhichtheexecutive,managementandgeneralmembershiphavebeenengaged.Itisnothardtopinpointthemostpressingareasforthemajorityofourmembers.Industrialrelations,workplacereformandoccupationalhealthandsafetyhavebeenkeytouchpoints.Nexttothose,planningremainsaconstantthorninthesideofindustry,althoughtherehavebeenmanygainsoverthepastfewyears.
Thefederallaborgovernment’sindustrialrelationsreformagendabegantotakefulleffectinthelastyearandwiththenewFairWorkActandawardmodernizationbeingimplementedinneartandem,createdawholenewoperatingenvironmentfortheindustry.Inconjunctionwiththereform,thedoorwasopenedforfargreaterunioninvolvementintheconductofbusinesses.Evenatthetimeofpreparingthisreport,somuchremainsupintheairontheindustrialrelationsandworkplacerelationsfront.MuchofthechangeismorefullycoveredinthereportbyourDirectorofIndustrialRelations.
TheACTGovernmentcontinueditsroundtableprogramduringthelastyeartoreceiveinformationthatwouldhelpitrespondtoanyfalloutfromtheGlobalFinancialCrisis.PlanningcontinuedtobehighontheroundtableagendaandMasterBuildersmaintaineditspositionofprovidingwrittenmaterialtotheroundtablesratherthanjusttalkandwalk.Thiswasparticularlyvitalduringaforumconvenedbythegovernmentonbuildingquality.Thesepapershave
beenwellreceivedbytheACTGovernmentinguidingtheirdecisionmakingonkeyissuesincludingcontinuedplanningreform.WemaintainourrepresentationontheIndustryMonitoringGrouponplanningwhichwasestablishedinresponsetooneoftheearlyroundtables.
Planningisalwaysandcontinuestobeacontentiousissuedependingwhichsideofthefenceyousiton.Youhavetheresidentsononesidewhoarealwayssuspiciousofanydevelopmentandyouhavethebuilders/developersontheothersideendeavoringtomaximizetheirfinancialinvestmentandminimizeholdingcostsbygainingapprovalsinatimelymanner.
TheMasterBuilders,throughitsinvolvementwiththeIndustryMonitoringGroup(IMG),hasworkedcollaborativelywiththeACTPlanningandLandAuthority(ACTPLA)overthepasttwelvemonthstoensurethatindustryandtherelevantagenciesstreamlineprocesseswhereverpossibletodeliverbetteroutcomesfortheindustry.
TheMasterBuildersacknowledgethatACTPLAhasdeliveredsignificantefficienciestotheindustry,especiallythroughtheexpansionoftheexemptapprovalsprocess,whichhasresultedinover2,000singleresidentialdevelopmentsnotrequiringapprovalthroughACTPLA.Thesetypesofdevelopmentshavebeenapprovedthroughtheprivatecertificationprocesswhichinturndeliversspeedierapprovalsandminimizingholdingcosts.
ThroughtheIMGdevelopmentapplication,statisticsareconstantlydiscussedandprocessesreviewed.ACTPLAalsointroducedelectroniclodgmentsforDAsoverthepastyearandthishasincreasedto50%ofallapplicationslodgedtoendofJune2010.ThiselectroniclodgmentprocesswillalsobeexpandedtoincludetheBAprocess.Thisshouldresultinfurtherefficiencygainsfortheindustry.
TheConstructionServicesBranchofACTPLAalsohascloseliaisonwiththeMasterBuildersthroughit’sauditingfunctionsofbuilders,buildingcertifiers
EXECUTIVE dIRECTOR
Master Builders Annual Report | ACT 9
andotherlicensedoccupations.Wewillcontinuetoliaisewiththisbranchtofurtherimproveprocessesintheindustryespeciallyrelatingtoqualityofbuildingworkissuesandfurtherrefinementofissuesassociatedwithdemolitionandasbestosremoval.
AfurtheroutcomeoftheACTGovernmentroundtableprogramwastheestablishmentofanewIndustryReferenceGroup.ThisgrouphaditsgenesisfromapaperpresentedbyMasterBuildersonprocurementthatthecivilsectorprovidedsignificantinputon.TheIRGhasbeenreviewingcasestudiesofbothgoodandbadpracticesaroundtheprocurementprocess,toidentifyblockagesincapitalworksdelivery.ThisisparticularlyimportanttotheACTGovernmentbecauseitssignificantlandreleaseprogramrestsontheprocurementprocess.
TwoagenciesthatimpactheavilyonourmembershipareACTProcurementSolutionsandActewAGL.SeniormanagementandappointedsectorcouncilmembersmeetwiththeChiefExecutivesandseniorstaffofboththesebodiesonaquarterlybasis.Anumberofissuesareresolvedinbothoftheseforums.Whilstwewouldlikeprogresstobequickeronsomeissues,MasterBuildersappreciatesthegoodwillandparticipationoftheagenciesandthecommitmentshownbythehigh-levelrepresentationofbothentities.
Theexecutive,PeakCouncilandSectorCouncilsallcontinuetomeetonaregularbasis.TherearereportsfromtheSectorCouncilsontheiractivitiesfurtheroninthisAnnualReport.CommoninterestmattersthathaveoccupiedtheagendasatthesemeetingsoverthefinancialyearhaveincludedtheintroductionoftheACTSecurityofPaymentsscheme,industrialrelationsissues,ACTWorkSafetylegislation,proposedgovernmentcodificationofChangeofUsecharges,planningreformandtraining.
MasterBuildersGroupTraininghasenjoyedasolidyearofoperation.Theuncertaintyconfrontingtrainingwiththeglobalfinancialturmoilhittingatakeydecision-makingtimemeantrisksneededtobe
minimized.Theboard,seniormanagersandstaffhavesteeredusthroughthedifficultywithdiligenceandhardwork.Ourtrainingoperationscontinuetoexpandandweseeitasabsolutelyvitaltoourindustry’sfuturethatmemberstakeadvantageofandsupportourtrainingeffortsandparticularlytheengagementofourapprenticesthroughthegroupscheme.
Oureventsandfunctionsareanimportantpartoftheengagementwithindustryandshowcasingthegreatworkofourindustrytothepublic.Thisyear’sExcellenceinBuildingAwardswasanoutstandingsuccessandthesupportofmajorsponsorsBoralandallofourothersponsorsisrecognizedwithgreatappreciation.ThereisalsomuchsupportrequiredindeliveringourPresident’sLunches,industrydinners,tradenights,apprenticeawards,golfdayandannualdinnertonameafewofourfunctions.Wearefortunatetohavesomanygreatindustrypartners.
TherearesomanyindividualmemberswhogiveincredibleamountsoftheirtimetohelpformMasterBuilderspolicypositionsandprovideinputtocriticaldebatesaroundamyriadofthingsthatimpactontheday-to-dayoperationoflocalbusinesses.Toooftenthisgoesunnoticedandtheimpactofthatinputisnotunderstoodorappreciated.Ioffermypersonalthankstoallofthosewhoareonourvariouscommittees,councils,referencegroupsandassociatedbodies.
Finally,IthankallthestaffofMasterBuildersandMasterBuildersGroupTrainingfortheirhardworkthroughouttheyear.Welookforwardtocontinuingthatworkduringthenextyearinsupportingtheneedsofourmembers.
John Miller �Executive Director
Master Builders Annual Report | ACT 10
InhandingdownmyfirstreportasTreasurerlastyearInotedtheconcernsofindustrywiththeonsetoftheGlobalFinancialCrisisin2008.Theforecastsconfrontingallofusweregloomy.ItismostpleasinginthatcontexttoreportthatthesituationinAustraliaandsubsequentlyonouroperationshavenotbeenasdireasmighthavebeenexpected.Ourultimatepositionwasalwaysgoingtorequiretightmanagementandconstantscrutiny,basicsthatneedtobeattendedtoingoodtimesandbad.
NotwithstandingtheconsolidatedfinancialreportwearerequiredtoproducetoreflecttherelationshipbetweentheMasterBuildersAssociationoftheACTandMasterBuildersGroupTraining,Iamabletoprovideanoverviewoftheactivitiesandperformanceofbothentitiesduringthe2009-10financialyear.
Master Builders association of the aCTFromaconsolidatedsurplusof$739,785in2009-10,asurplusof$198,698hasbeenrecordedforMasterBuildersACTastheparententityforthefinancialyearending30June2010.Thiswasabovebudgetexpectationalthoughwasimpactedonlatebytherequirementtoformallyrecognizethecompletionofthenewbuildingformallyintheaccountsinthisfinancialyear.Inavolatileeconomicclimatesuchascurrentlyexists,theexecutivecommitteehasdeterminedthatborrowingsbytheAssociationshouldbekeptataminimum.Weretainaround400m²ofspaceontheupperlevelofourbuildingwithincomepotential.
Expenditureatanoperationalleveliscloselymonitoredtoensuresavingswhilstatthesametimeminimizinganyimpactondeliveryofmemberservices.Membershiphasremainedsteadyduringthefinancialyear.EventsusedtoshowcasetheAssociationandworkofmembers,aswellasprovidinggoodmembernetworkingopportunities,continuetoruneffectivelyandreturnsmallsurpluses.Communicationwiththemembershipisimportantandisasignificantcostalthoughthisisoffsetbyin-housedesignandpublication.
Amodestbudgetsurplushasbeensetforthe2010-11financialyearandIamconfidentthatgiventhe
processeswehaveinplacetomonitorandadjustouractivitiesIwillbeabletoreportbackthistimenextyearofasoundresultforMasterBuildersACT.
Master Builders Group TrainingAgainstadeficitof$24,797recordedlastfinancialyear,wehaveasurplusof$541,087fortheyearending30June2010.Thefluctuationsexperiencedinfinancialoutcomesforthegrouptrainingoperationhavebeenaconstanttodealwithovertheyearsandchangestobotheconomicconditionsandgovernmentfundingarrangementscanimpactquickly.
Ourapprenticenumbersweremaintainedoverthelastyearandpleasinglyinthefaceofthepredicteduncertaintyplacementwithindustrycontinuedtobestrong.TheintroductionoftheConstructionIndustryInductionCard(WhiteCard)trainingkepttheskillscentreverybusyformanymonths.Builder’slicensingtrainingisstillattractingalotofinterestandnewcoursesaroundoccupationalhealthandsafetyandenergyratingarebeingintroduced.
Thenewinformationtechnologytrainingroomisimportanttoourtrainingoptionsandoffering.Newcoursesaroundenergyratingandthermalperformancewillrequireaccesstothistypeoffacilityandtohaveitimmediatelyavailabletouswillassistinsupportingindustryandensuringareasonablereturnonourcommitment.WecontinuetoreceiveadditionalrevenuefromprivateuseofourfacilitieswhennotbeingusedforMasterBuilders’purposes.
ConclusionIendmyreportbyagainthankingmyexecutivecommitteecolleaguesfortheirexcellentsupportinhelpingusallkeepoureyeonthefinancialball.LouiseMacCallumandheraccountsteamcontinuetoproducetimelyanddetailedinformationfromwherewecancloselymonitorthefinancialperformanceoftheentities.IlookforwardtoreportingnextyearinsimilarpositivevainasIhavedoneabove.
Simon Butt �Treasurer
TREASURER
Master Builders Annual Report | ACT 11
The2009-10yearwasayearofdifferingfortunesforthebuildingandconstructionindustry.
Thesecondhalfof2009sawbothresidentialandcommercialbuilderscaughtinthegripoftheGlobalFinancialCrisis(GFC)despitethemanypositiveeconomicinitiativesofthethenRuddLaborGovernment.ThereisnoquestionthattheGovernment’sstimuluspackageinboostingtheFirstHomeOwnersgrantandtheBERschoolsprogramwereamajorpositiveforindustry.TheseprogramsunderpinnedconfidenceandtheylargelystoppedAustraliafromsufferingatechnicalrecession.Thebuildingandconstructionindustryplayedaverymajorroleinkeepingtheeconomygoingandinkeepingemploymentrelativelystrong.TheGovernmentdeservedcreditforwhatitdidandthiswaspubliclyacknowledgedbyMasterBuildersAustralia.
However,theGFCsawtheavailabilityofbusinessfinancefromthebanksgodownandthecostofborrowinggoup.Thisplacedhugepressuresontheindustryandaproblemthatremains.
Apartfromtheeconomytheindustryin2009-10facedothermajorchallengesandnonemoresothanintheareaofworkplacerelations.ThetransitionfromtheWorkChoiceslegislationtotheFairWorkActhascreatedmanychangesanduncertainties.ThemostunacceptablewastheGovernment’sdecisiontorecommendareductioninthepowersoftheAustralianBuildingandConstructionCommission(ABCC).ThiswasdespitethefindingsoftheGovernment’sowninquirybyJusticeWilcoxwhofoundthatsadlyindustrialunlawfulnessremainsamajorproblemforthecommercialbuildingindustry.MasterBuilderswillkeepfightingfortheretentionoftheABCCpowers.TheimplementationoftheFairWorkActsawbuildingunionsattempttoclawbackandreintroducerestrictiveworkpracticesonbuildingsites.TheAwardModernisationprocesswhichbeganinearneston1January2010wastoguaranteethatemployerscostswouldnotincreasebutthishasproventobeanemptypromise.
ThereweremanyotherinitiativesandreformsputinplacebytheFederalGovernment,oratleasttheprocessstarted,includingnationalworkplace
safety,harmonisation,nationallicensingoftrades,Australianconsumerlaw,disabilityaccesstopremiseslegislation,tonamebutafew.
AsaresultoftheGovernment’smassivereformagenda,advocacyatthenationallevelwasveryintenseinrepresentingtheinterestsofyourindustry.
The2009-10yearendedwithevenmoreuncertaintieswhentheHonJuliaGillardtookoverasPrimeMinisterinJuneandthencalledanearlyelectionnotlongafter.
ThenewtermofGovernmenthasresultedinaminoritygovernmentwiththesupportoftheIndependents.RegardlessthemostimportantchallengeforourindustryishowtheeconomyistobemanagedpostGFC.Withoutastrongeconomyandapositiveeconomicagenda,thebuildingandconstructionindustrywillruntheriskofexperiencingalongperiodofpoortradingconditions.MasterBuildersAustraliawilllobbyhardforthatnottobethecaseintheyearahead.
Wilhelm Harnisch �CEOMaster Builders Australia
MASTER BUILdERS AUSTRALIA
Master Builders Annual Report | ACT 12
Residential OverthepastyearresidentialbuildingactivityintheACThasbeenverystrong,thiscanbeprimarilyattributedtotheongoingdemandforresidentialhousingandthefirsthomeownergrantboostwhichhasseenverystrongactivityinthefirsthomeownersmarketingsector.ACTGovernmentHousingaffordablehousinginitiativeshavealsocontributedtotheongoingstrengthofthenewresidentialhousingmarket.
ThelastyearhasalsoseenmorelandbeingreleasedtothemarketespeciallyinNorthCanberraandforecastreleasesofanadequatesupplyoflandforfutureyearsincludingMolonglo.Theavailabilityofadequatelandsupplycoupledwithlowinterestratesandlowunemploymentshouldensuresolidgrowthinnewhousingstartswellinto2011.
Theadditionsandalterationssectorofourmarkethasalsoseenrelativelystrongactivityinthepasttwelvemonths.Consumerconfidenceinthissectoroftheindustryappearstobemuchhigherthanlastyearwhichisboostinghouserenovationactivity.Additionsandalterationsactivityareforecasttogainfurtherstrengthovertheshortandmediumterm.
Theredevelopmentsectoroftheindustryhasalsoseenstronggrowthinurbanrenewalwithincreasedactivityinmultiunitdevelopmentsandmediumtolowriseunitdevelopments.Thegrowthinthissectormaybehamperedbyuncertaintysurroundingtheproposedchangeofusechargewhichwastohavebeeninplaceby1July2010.
Theonenegativeissueinthepastyearhasbeenthequalityofworkandspecificissuesraisedbyresidentsinmultiunitdevelopments.TheResidentialSectorCouncilhasbeenanactiveparticipantinaddressingconcernsraisedbytheMinisterforPlanningandwearehopefulofasatisfactoryresolutionmovingforward.
AsIseeittherearechallengesaheadfortheindustry,especiallyaroundtheissueofhousingaffordabilityand
theextracostimpostsbeingimposedonoursectoroftheindustryassociatedincreasedenergyefficiencyrequirements.Theeverincreasingcostsoflandandspecificallythenewrequirementsassociatedwithestatedevelopmentcodeswhich,ifimplementedinthecurrentform,willresultinreducedblockyieldandevenhigherlandcoststotheconsumerandthebuilder.
WealsohavechallengesintheresidentialsectorresourcingadequateskilledtradespeopleespeciallyinperiodswherethereisapeakinconstructiondemandandIcallonoursectoroftheindustrytosupportapprenticeshiptraininginitiativestosecurethefutureskillsneedsofourindustry.
Andrew Kerec �Chair
SECTOR COUNCILS
Master Builders Annual Report | ACT 13
ProfessionalTheProfessionalCouncilrepresentstheprofessionalindustryincludingplanners,architects,landscapers,engineers,lawyersandbankersjusttonamesomeoftheskills.
ThisCouncilplaysitsroleintheMasterBuildersAssociationtoadviseonaraftofplanning,designandconstructionissuesthatarecontinuallyontheagendaoftheAssociation.TheProfessionalCouncilisrepresentedbyaChairandalternateontheMasterBuildersExecutive.Thesetworepresentativesandmanyothervolunteersthenprovideadviceregardingtheday-to-dayissuesthatmightarisebutmoreusuallyspecificissuesthatareofanon-goingnatureinourindustry.
Asanexampleoftheinputyoursectorhasintoissues,wearepresentlyinvolvedwithcommittees,workshopsandformalsubmissionsworkingonQualityofBuildingWork(predominantlytoaddressresidentialunitdevelopmentprocessestoensurequalityofwork),DraftVariationstotheTerritoryPlan(arangeofamendmentsarecontinuallybeingproposed),ConstructionIndustryAdvisoryGroup(involvedwithcomplianceandeducationactivitiesintheconstructionindustry),ChiefMinister’sRoundTable(aninitiativebytheChiefMinistertomeetwithseniorindustryrepresentativesonmajorissuesconfrontingtheACT),BCA2010(cameintoeffect1July2010includingnewprovisionsforenergyefficiency),MasterBuilders/ActewAGL(regularmeetingstoaddressissuesarising),UniversityofCanberraBachelorofBuilding&ConstructionManagementCourse(toensurethecommitmenttothecontinuationofthiscourse),ACTCivil&AdministrativeTribunal(ACAT)(reviewingdecisionsandpossibleimpactsontheindustry),Training(inputtovarioustrainingcoursesprovidedbytheMasterBuilders).
TheCouncilisalwayslookingforitsmembershiptocontributetothesevariousactivities.
Hans Sommer �Chair
Subcontractors and SuppliersWhenIlookbackatthelastyearIamremindedthatoneshouldnevergiveuponfightingforwhatwethinkisrightandwhatwewantforourIndustry,asagroupwecanachievegreatoutcomes.IsaythisasIthinkofallofthepeople,andtheyknowwhotheyare,thatfoughtsolongandhardtointroducetheSecurityofPaymentslegislation,asfarbackasthelateeighties.
Althoughunsuccessfulatthetime,theylaidthegroundworkfortheintroductionofthelegislationfromthefirstofJulythisyear.Isitperfect?Probablynot;doesitmeanthatthesubcontractorswillbepaidalltheirentitlementsontime?Idon’tthinkso.Itishoweverastepintherightdirectionanditwillgoalongwaytohelpsettleandavoidlongrunningdisputes.IthasbeengreattoseetheincreasedattendanceattheSubcontractorsandSuppliersSectorCouncilmeetingsbutweneedmorememberstoturnupasthisisstillthebestforumtoshareyourgrievancesandtomakeyourvoiceheard.Itisthroughthisforumthatasagroupweahavechancetomakeourindustrymuchmoreequitable.AsthebiggestgroupintheMasterBuilders,ifwetalktheywilllisten!
Intheyearaheadthereismoreworktobedoneandmanymorecausesworthstrugglingfor,likeareductioninworkerscompensationpremiums,properscrutineeringofsubcontractorswithoutaddedburdentothosewhoaredoingtherightthingandmostimportant,tomakesurewehaveavoiceinallmattersaffectingourindustry.
ItakethisopportunitytothankPeterFairburnforhisfantasticcontributionasChairmanofoursectorandwishhimwellinhisretirement.
Graciete Ferreira �Deputy Chairman
Master Builders Annual Report | ACT 14
Civil ContractorsThelast12monthsoftradinginthelocalCivilConstructionsectorhasbeencharacterisedbyrapidlygrowingorderbooksformostofourmembers,shortagesofskilledplantoperatorsandspecialisedsubcontractors,andtheincreasingpresenceofcontractorswhohavecomefromotherstateshopingtotakeadvantageoftheexcessiveworkload.
Manycompanieswithinthesectorwouldprefertohavetheavailableprojectsspreadoveralongerperiodoftimetotrytoavoidaboombustcycle.Suchawishwoulddeliverbettereconomicvaluetothecommunitybuthasalwaysbeenhardforauthoritiestomanage.TheconcurrentconstructionofthenewdamontheCotterRiverandotherprojectsbytheBulkWaterAlliancehasunfortunatelyaddedtopressureonlocalresources.
Theshortageofresidentialland,associatedheadworksandadjacentinfrastructureisdrivingthecurrentworkloadanditisdifficulttodeterminewhenlandsupplywillcatch-upwithdemandasitsurelymust.
TheyearhasalsobeennotableforthebreakingoftheseveredroughtandareturntothemoretraditionalwetCanberrawintersandtheconsequentproblemofsignificantlabourdown-timewhenevensmallraineventscanhaveasignificantimpactduetoextendeddryingtimesonsitesduringthecoldermonths.Somecontractorsarere-learningtheneedtohavefundsavailabletosurvivetheperiodsoflowincomeafterseveralyearsofunusuallydryconditions.
Ourassociationhascontinuedtoworkwithgovernmentagenciestoofferconstructivesuggestionsfortheimprovementofthedeliveryofcapitalworkstothelocalcommunity.Inparticular,ourlongtermprojectofseekingareviewandchangetothequalityofdesignsanddocumentationoncivilprojectsisnearingcompletion.Wehavealsoexpressedconcernaboutthepracticeofcallingtendersbeforetheprojectisactuallyreadytocommence.Delaystoprojectsoccasioned
byacomplexplanningandapprovalprocessarefarfrombeingresolved.Fromthegovernment’sside,thedepartmentofTAMShasbeenconcernedaboutsomeinstancesoftheslippinginqualityofconstruction.
Ithasbeenasuccessfulyearformostofourmembersandwearegratefultothehard-workingstaffoftheMasterBuildersfortherepresentationandguidancethatisgiventooursectorasawholeandtoindividualmemberswhensoundadviceisrequired.Itisagreatindustrylargelybuiltonthebacksofpositivehardworkingpeopleandweallremainupbeataboutthefuture.
Peter Middleton �President
SECTOR COUNCILS continued...
Master Builders Annual Report | ACT 15
Commercial Builders ThecommercialbuildingsectorsawanotherbumperyearofworksintheterritoryandIampleasedtoprovideabriefoverviewofactivitiesinthe2009-10financialyear.
ThecombinationofacontinuationofthebuoyantconditionsbroughtaboutbyseveralmajorprojectsinthepublicandprivatesectorandtheFederalBuildingEducationRevolutionprojects,hadthepositiveaffectofgrowthinthesectorcreatingstrongemploymentwithintheindustry,withthecountereffectofmaintainingthepressureontheskilledresourcesatbothworkerlevelandmiddlemanagement.
Thesectorlookstotheskillingindustryandgovernmentsforcontinuedsupporttodealwiththisgrowingproblem.Inthisregardthesectorprovidedon-sitetrainingsupportwhileutilisingtheservicesoftrainerssuchasMasterBuildersGroupTraininginhostingcadetsandtradeapprentices.
TheMasterBuildershavealsobeenveryactiveinencouragingandsupportingtheUniversityofCanberra’sConstructionDegreeprogramwhichisprovingtobeagreatsuccessforthecommercialsector.
AstrongfocusonoccupationalhealthandsafetyonsitewasreinforcedwithdevelopmentandsupportofthesectorbasedOHSliaisongroupinsharinginformationanddevelopingauniformpracticalapproachtoenforcingOHScomplianceonsites.
TheMasterBuildersandcommercialsectorwaswellrepresentedinprovidingeffectivefeedbackandsupportfortheintroductionoftheSecurityofPaymentsActintheterritory,whichcameintoeffecton1July2010.
ComplianceoftradecontractorswaselevatedasanissueandtheCommercialBuilderssectorcontinuingtoinvestigateworkable,selfregulatedsystemsofmonitoringandfacilitatingcompliancethatcantakethepressureofftediousrepetitivemonitoringatthebuilderlevelaswellasatthesubcontractorlevel.
IndustrialrelationsinthesectorcontinuedtobeactivewiththesupportoftheMasterBuildersDirectorofIndustrialRelations,memberswereassistedinachievingworkableagreementsandfeedingbacktocontemporaryissuessuchasawardmodernisationandsubcontractorcompliance.
Thesectorwaswellrepresentedduringtheyearonroundtableswiththevariousauthoritiesandutilityproviderstoengagethemasstakeholdersintheindustrytofacilitateworkablerelations.Manyissueswereraisedthatassistedinidentifyingsystematicproblemsthatarenowontheradarofcontinuousimprovementwhichwillhavelongtermbenefitstomembers.
TheSectorlookstothecomingyearasoneofconsolidationandreadinessmeetthenewchallenges.
Sam DeLorenzo �Chair
Master Builders Annual Report | ACT 16
IntroductionIunderstandthiswillbethefirstindustrialrelationsreportforwhatonehopeswillbecomearegularevent,thepublicationofanAnnualReport.Giventhatcontext,onesfirstdutyistopayregardtomypredecessor’sservicetotheconstructionindustrygenerallyandtheMasterBuildersinparticular.Twentysixyearsisanenormouscontribution,nevertobereplicated.
WhatthisreportwillsetouttodoisgiveaconciseoverviewofthosemattersthathaveexercisedmytimesincemycommencementinJanuarybothatthelocalandnationallevel.Thereafter,IwillendeavourtodoalittleforwardthinkingwithrespecttoprospectivechangestothelegislativeregimebothintheACTandfederallyandperhapsafewfinalwordsonourinteractionwiththeCFMEU.
The local sceneWhenIcommencedinJanuarytwoimmediateissuesdemandedmyattention.Thefirstwastheneedtobringabetterunderstandingofwhatwasatthatpointverynewfederalindustrialrelationslegislation.Forthoseofususetoworkingwith‘WorkChoices’,thenewFairWorkAct2009(Cth)(theAct)andthemodernAwardregimepresenteddifferentchallenges,nottheleastofwhichwastheincreasedroleoftheunionmovementatworkplaces.Thusinmyfirstfewmonths,armedwithappropriategovernmentfundingweheldanumberofseminarsbothin-houseandatindividualworkplacesexplainingthesubtleyetprofounddifferencesbetweenlifeundertheconservativesandlabor.
Judgingfrommembershipfeedback,itwasasuccessfulexerciseandperhapsworthdoingagainpostelection.
Thesecondmatterofimportancewastheissueof‘sham’contractingortheengagementofABNholdersinthecommercialsectoroftheindustry.ThisformofengagementhasbeencommonplaceforaverylongtimeintheCanberrascene.WiththeadventoftheCommonwealthConstructionCode,theABCCandthenewshamcontractingprovisionsintheAct,itspracticeisnowhighlyproblematic,particularlygiventheovertinterestoftheCFMEUandABCCinthepractice.TheMasterBuildersapproachwastwofold;firstlyweranaseriesofseminarswiththecooperationofHughChalmersofMeyerVandenbergLawyers,whichwere
oversubscribedandsecondly;theprovisionofstrategicadvicetoindividualmembersdependingonexposureandpressurefromboththeunionandABCC.
Itisfairtosaythisissueoccupiedaninordinateamountofmytimeandinalllikelihoodwillcontinuetodoso.Further,thosemembersunderthegreatestpressureremainplasterers,painters,bricklayers,formworkersandotherliketrades.
Theyearhasalsoseenconsiderableworkintheenterprisebargainingspace.UndoubtedlythemainreasonforthishasbeentheweakeningofthebargainingarrangementsundertheAct,whichnowseestheCFMEUenjoyingdefaultrepresentationalrights.Employers,whoforagenerationhavedealtsuccessfullywiththeirworkforcewithouttherecoursetounions,arenowbeingforcedtositdownwiththeCFMEU.Themainareasofnegotiationrevolvearound;hoursofwork(36-38),OH&Sandofcoursemoney.Thecurrentunioncampaignisfor15%increaseoverthelifeoftheagreement.MembersshouldbeadvisedthattheMasterBuildersalwaysaddressesthesemattersonacasebycasebasis.
WiththechangeofleadershipattheCFMEUwehaveobservedastrongerpresenceoftheunionatworkplaces,asthenewSecretaryseekstomakehispresencefelt.ThiswasparticularlythecasefollowingtheunfortunateBartonHighwaybridge-deckcollapse,whichsawtheunionseektogainaccesstosub-contractorinformationinrelationtoworkerscompensationandother‘entitlements’onthebasisoftherebeinga‘reasonablesuspicion’ofbreachesoftheWorkSafetyAct2008(ACT).
The picture australia wideNationallythepicturecanbesummarisedasconfused,asthepartiesseektofullyunderstandtheworkingsofthenewActandFairWorkAustraliainadditiontoimplementationoftheModernAwardsystemandtheharmonisationoftheOH&Slegislationtonameafew.IftheshemozzlethatwastheNationalWagecaseisanygaugeoftheefficacyofthenew‘purposebuilt’FairWorkAustralia,isanyindicationofthefuture,thenallofusareinforabumpyridein2011.
INdUSTRIAL RELATIONS
Master Builders Annual Report | ACT 17
OH&SIntroductionWiththerecentBartonHighwaybridge-deckcollapse,OH&SissuesremainfrontandcentreintheACTandsurroundingregion.WorkSafety’sfocusisfairlyandsquarelyontheconstructionindustrywithmoreinspectorscomingonboardandtheOfficeofRegulatoryServicesreportinginspectinginexcessof630sitesin2009-10.WehavealsoseentheintroductionofCodesofPractice(FallfromHeights)andchangestotheWorkersCompensationActincreasingcoveragewithintheindustry.
FitnessforWorkandtheprospectoftheintroductionoftestingremainsaworkinprogressalso.CertainlytheMasterBuildersisunlikelytogetinitialwidespreadsupportforimpairmenttesting,butmembersshouldbeawarethatsomehaveexpressedaninterestinbeingstandardbearersandthisisanissue,whichIwillpersonallydrive.Thereoughtbenocompromiseonsafety,nearenoughisnotgoodenoughandzeroharm,whilstcertainlyasearingchallengefortheindustryremainsanachievablegoal.
Allthatsaidanddone,themajorissueconfrontingthemembership,governmentandotherstakeholdersistheharmonisationofallstateandterritoryOH&Slawsintoonenationalcode.Theremainderofthisreportwillgototheimplementationofthenationalsystemdueon1January2012.
Where to for implementation?ThelikelihoodofworkablenationalOH&Slawsbeinginplaceby1January2012appearslesslikelyifyouaretobelievethevoicesofsomeofthestakeholders.ThemodelActreleasedbySafeWorkAustraliamayinfactcomeacropperduetothestructuraldifferenceswithinthevariousstateregimes,asquestionsremainaroundwhichregulatorybodywillprosecuteoffendersandwhichcourtwillhearthesematters.
Thepoliticalstateofthenationshedslittleifanylightontheprospect,withWAnotagreeingtoimplementthelegislation,andgiventhestateoffluxnationally,whicheverparty,withthesupportofIndependents,comestotheTreasurybenchesishardlylikelytobefocusedonwhatwasanon-existentissueatthepolls.Addedto
thismixistheveryrealconcernthattheconstitutionalpictureisfarfromclear.ThestrictlegalistpositionisthatCommonwealthregulatorscanonlyenforceareasoflawwhereanexistingheadofcommonwealthpowerexists,(iethereisanexpresstermintheConstitutiongivingtheCommonwealththepowertolegislate).
Thereisnooccupationhealthandsafetyheadofpowerintheconstitution,meaningthattheonlywaytheCommonwealthcanregulateinthisareaisifthestatesrefertheirpowers,astheydidwithindustrialrelations.
OfcoursetheGovernmentcouldgototheelectorateviaareferendum.ThiswasanoptiongivenseriousconsiderationpriortotheAugustelection,howeverinthecurrentenvironment,anythoughtsofareturntothepolls,ifonlyforareferendumwillbemetwithhowlsofderisionfromapublicutterlysickofpoliticsandpoliticians.Giventhepeculiarconstitutionalrequirements,itisagainunlikely,withareferendumneedingoverwhelmingsupporttohaveanychanceofsuccess.
IntheabsenceofconstitutionalreformOH&Sregulatorswillbelefttodeveloptheirownguidelines–andwithninedifferentjurisdictionsandworkplaceauthoritiesadministeringthelaws,youaregoingtogetunequalandinconsistentapplication.
Thereisalsouncertaintyaboutwhichcourtwillhearmattersofthisnature.InNSWforexampletheIndustrialCourthasjurisdictiontohearOH&Smatters,butthereisnoequivalentcourtinVictoria,ACTorQLDandforawholerangeofcomplexreasons,NSWisunlikelytobethemodeladopted.
Toovercomethisproblemanexistingcourtwillhavetobegivennationaljurisdiction,forexampletheDistrictorSupremeCourtineachstate.Thatsaidthereislikelytobeanenormousfightoverjurisdictionandgiventhatmodellawsweredeterminedbydifferentcourtsthereislikelytobeaseriesofdivergentoutcomesacrossthenation.Thatis,assumingthesystemevengetsofftheground.Sowhilstharmonisationisadesiredoutcome,theroadaheadisfarfromsmooth,withmanycul-de-sacsstilltonegotiate.
Michael Baldwin �Director Industrial Relations
Master Builders Annual Report | ACT 18
Master Builders Fidelity Fund ReportTheACTMasterBuildersFidelityFundwasestablishedin2002undertheACTBuildingActfollowingthecollapseofHIHandthereluctanceofotherinsurerstoprovideHomeWarrantyInsurance.TheFidelityFundisadministeredbytheACTMasterBuildersAssociationandoperatesunderaTrustDeedwithTrusteesapprovedbytheMinisterforPlanning.ThefundisregulatedunderaprudentialstandardestablishedbyACTGovernmentRegulationandreportstoACTTreasury.
Sincethefundcommencedin2002over15,000CertificateshavebeenissuedtoprotecttheinterestsofconsumersintheACTagainsttheinsolvency,disappearanceordeathofthebuilderduringconstructionandagainstlatentdefects.Thewarrantyperiodis6yearsfromcompletionforstructuraldefectsand2yearsfornon-structuraldefects.
ApplicationsforapprovalwiththeFidelityFundareassessedbyanindependentassessorandapprovedbytheBoardofTrustees.InthelastfinancialyeartheFidelityFundissued2,372Certificatesofcover.ClaimslodgedagainstthefundareadministeredbytheMasterBuildersAssociationandreferredtoanindependentassessorpriortosubsequentreferraltotheFidelityFundBoardofTrusteesforconsideration.Claimsareusuallyprocessedandfinalisedwithin90daysoflodgment.
IreportthattheACTschemeisoperatingwellwhilewarrantyinsuranceinsomeoftheotherstateswherecoverisprovidedbyexternalinsurershasbeenofsomeconcern,thepositionintheACTisdifferent.TheACTMasterBuildersFidelityFundhassafeguardedtheActHomeBuildingIndustrybycontinuingtoprovidecoverageintheTerritory.
Col Alexander �Chair - Board of Trustees
Master Builders Skills Centre Building FundTrainingisthelifebloodofourindustry.Withoutitwewillonlyseeadeteriorationofqualityacrossallaspectsoftheindustry,apositionthatisuntenable.Wecanimportsomanyproductsandappliancesthesedaystosuitourlifestylesbutwecannot
importbuildingandconstruction.Itisdoneonthegroundhere.Totrainpeopleweneeddecentfacilitiesandthisisnotalwaysaneasyundertakingforthoseoperatinginthetrainingworld.
TheMBASkillsCentreBuildingFundwasestablishedtoprovideassistancetonon-profitorganizationsfortheacquisition,constructionormaintenanceofabuildingorbuildingstobeusedasaschoolorschools.Thebuildingfundreliesondonationsbeingreceivedandthentrusteesconsiderappropriatedistributionsbasedongrantrequests.
IampleasedtoreportthatoverthepastyearwehavebeenabletosupportincreasedinfrastructureatMasterBuildersGroupTrainingskillsfacilityaswellassupportingtheOzHelpFoundationintheacquisitionandestablishmentoftheirnewpremisesandtrainingcentreatFyshwick.Bothoftheseoperationsareprovidingcriticalsupporttothebuildingandconstructionindustryandareabletoincreasethatsupportthroughthesecontributions.
WhilstthefundreceivesmuchofitssourcerevenueviadistributionfromlimitedFidelityFundsurpluses,wehavealsosoughtandreceivedotherincomeviafunctionsandourowncharitygolfday.Oneofthechallengesforthefundtrusteesistolookatarangeofactivitiesandopportunitiesthatwouldattractadditionalfunds.Wehavebeenpromotingthefundthroughadvertisingforanymemberwhoisinterestedinandabletodonatetothefund.Iwouldencouragememberstoconsiderthisisagoodwayofgivingbacktothetrainingproviderswhocansupportlocalbusiness.
Thetrusteesmeetperiodicallythroughouttheyeartomanagethebusinessofthefund.Thisalwaysrequiresacommitmentfrompeoplewhoareinvariablyextremelybusyintheirownoperationsbutcommittedtogivingback.IthankmyfellowtrusteesandthosewhosupporttheworkofthefundandIlookforwardtoreportingontheactivitiesofthefundnextyearasitbecomesmoreestablishedinitsroleofsupportingthevitaltrainingeffortneededtogrowtheACTeconomy.
Trevor Corver �Chairman
MASTER BUILdERSFIDELITY FUND & SKILLS CENTRE BUILDING FUND
Master Builders Annual Report | ACT 19
MasterBuildersGroupTraining(MBGT)hadasolidyearandcontinuestodevelopandgrowasaresultofinitiativesdevelopedthroughourday-to-dayoperationsandtheongoingimplementationofthestrategicplan.
Thisfinancialyear,theGroupTrainingOrganisation(GTO)employed186fulltimeandparttimeapprenticesandtheRegisteredTrainingOrganisation(RTO)trained302fulltimeandparttimeapprentices.
Forecastingdemandforourservicesandbalancingthiswithourannualintakeofnewapprenticesisalwaysdifficultduetothecompetingdemandsofsatisfyingourclient’sneeds,whileensuringthatwedonothaveourapprenticesoutoffulltimeplacement.Thedemandforapprenticesduringthefinancialyearremainedrelativelyconstantwiththedowntimeaveragedat22.3hoursperapprenticeincomparisonto39.8hoursin2008/2009.
Ithasbeendifficultoverthepastthreeyearstoattractsufficientbricklayingapprenticesintothetrainingprogram.Throughtheintroductionofanumberoftrainingincentives,the2009/2010yearhasshowna17%increaseinbricklayingapprenticesintrainingatMBGT.Althoughthenumbersremainrelativelylowincomparisonwithothertrades,wecurrentlystillhave34bricklayingapprenticesintraining.
TheemploymentofadedicatedOH&Sofficerandthereinforcementofsafetythroughourpolicyandcomplianceregimeshaspositivelyimpactedontheworkerscompensationclaimswiththenumberofclaimsdecreasingfrom36inthe2008/2009financialyear,downto10in2009/2010.
Wecontinuetodeveloptraininginitiativestosuitthedemandfromourmembersandthroughchangesinlegislationandindustrystandards.TheintroductionoftheACTInductionCardboostedthetrainingdemandforthisunitofcompetencyandcombinedwithexistingworkerandothershortcourses,MBGTissued1780statementsofattainmentduringthefinancialyear.
AgainourApprenticesandTraineeshaveexcelledinachievingrecognitionforexcellenceintheir
chosenfields.IntheRegionalWorldskillsweachievedgoldinplumbing,silverinBricklaying,bronzeinCarpentry,silverintheschoolbasedcategoryandsilverintheteamcarpentrycategory.ThiswasfollowedupbyGerardAllen,afourthyearplumbingapprentice,securingagoldmedalintheNationalWorldskillscompetitionheldinBrisbane.
TheProductivityPlacesProgramhasprovidedfundedopportunitiesforexistingworkersintheindustrytobeassessedforqualificationswhichrecognisetheskillsandknowledgetheyhaveacquiredthroughonthejobtraining.ThisyearMBGThaveregistered52existingworkersintheprogramcoveringfromCertificateIIIinCarpentry,CertificateIIIBricklaying,CertificateIVinBuildingandtheDiplomaofBuilding.
OurschoolbasedprogramssuchastheSchoolBasedApprenticeSchemeprovidesalearningpathforstudentsandanopportunityforthemtousethistrainingtosecureanapprenticeshipattheendoftheirschooling.Thishasanaddedbenefitinthatthesestudentswillhavealreadyobtainedanumberofskillsandcompetenciespriortoofficiallystartingasanapprentice,makingthemveryvaluabletoourhostclientsfromthefirstdayonsite.TheKidsAssistprogramcontinuestogenerateenormousinterestanditisgenerallyrecognisedinthetrainingarena,thatthisprogramiseffectiveinassistingstudentsmakemoreconsidereddecisionsregardingtheiroptionsforfutureeducationandtraining.
Rod Mitton �ChairmanMaster Builder Group Training
MASTER BUILdERSGROUP TRAINING
Master Builders Annual Report | ACT 20
The awards DinnerItwasaspectacularnightoffinedining,premiumentertainment.ThehostoftheeveningwasAnhDo,asseenonThankGodYou’reHere,DancingwiththeStarsandTheMattyJohnsShow,tonameafew.Theentertainmentfortheeveningwasablastfromthepast,AlJamesasNeilDiamond:TheUltimateTribute.
Project of the yearTheBotswanaHighCommissionhasearnedKell&Rigbytheprestigiousandhighly-anticipatedawardforProjectoftheYear.
TheconstructionoftheBotswanaHighCommissionshowcasesgreatqualityofworkmanshipandmeticulousattentiontodetail.Thisoutstandingprojectboastsexceptionalfinishes,cleanandprecisejoinery,andintricateglazedbrickworkonthecurvedexternalwall.
House of the yearThetitleofHouseoftheYearisahighlysoughtafterone,awardedtohomesofthehighestpossiblestandard.Thisyear,MonarchBuildingSolutionshavetakenouttheprestigiousawardfortheirexceptionalworkonthiscustom-builthomelocatedinYarralumla.
TheteamatMonarchBuildingSolutionswererecognisedwiththismosthighly-covetedoftheresidentialawardsfortheirdedicationtotopqualityworkmanship,meticulousattentiontodetailandagreatcommandofmaterialsandconstructiontechnique.
MASTER BUILdERS & BORAL EXCELLENCE IN BUILDING AWARDS
Master Builders Annual Report | ACT 21
Emerging Building of the yearAaronTempletonhasapedigreeofmorethan10yearsservicewithinthebuildingandconstructionindustryasaCarpenterwithanumberofstandoutachievementsmarkinghiscareer.In2000hewasjudged‘OutstandingFirstYearApprentice’andhemaintainedthishighstandardthroughouthisapprenticeship.
Aarondulycompletedhisformalapprenticeshipandwentontoundertakehigherlearningrequirementsin2006throughtheMasterBuildersinACTinpursuitofalow-risebuilderlicensewhichheagainachievedbymaintainingexcellentassessmentoutcomesintheprocess.
Professional of the year - Ian anlezarkIandisplayscontinuoushighlevelsofdedicationandprofessionalisminhisworkandagreatrespectfortheindustryasawhole.IanisaccreditedasaPrincipalBuildingSurveyorwiththeAustralianInstituteofBuildingSurveyors,isregisteredasaPrincipalBuildingSurveyorintheACTandasaGrade1CertifierinNSW.Ian’sareaofexpertiseistheassessmentandapprovalofallclassesofbuildingsinaccordancewiththeBuildingCodeofAustralia.
Subcontractor of the yearNationalFixingPtyLtdhavedevelopedawell-respectednameforthemselvesthroughoutthebuildingandconstructionindustry,consistentlydisplayingmeticulousattentiontodetailandprofessionalworkofthehigheststandard.NationalFixingPtyLtdplaceagreatfocusonqualityofworkmanshipandtheflawlessnatureoftheirworkspeaksforitself,winningthemthecovetedtitleofSubcontractoroftheYear.
Master Builders Annual Report | ACT 22
2010 EVENTS2010 Charity Golf DayThisyear’sGolfDaywasheldatYowaniCountryClubandthemoneyraisedthroughthiseventwenttotheMasterBuildersSkillsCentreBuildingFund.
Thedaybeganwithsomeverykeenplayerstee-ingoffjustafter6.30am.Fromthere,over220MasterBuildermembersandguestsplayedaleisurelyroundofgolf,upuntilapproximately6.00pm.Theeventdinnerhostedby106.3FMRadioPresenterCamSullingsandthespecialguestforthenightwasAustralianmediapersonality,sportscommentatorandformerAussieRulesplayerSamKekovich.
2009 annual Dinner - Hotel Realm250guestsattendedtheAnnualDinner,JohnHargreaves,MLAandhiswifeJennyrepresentedtheACTGovernmentandamongsttheguestsfromallsectorsofthebuildingandconstructionindustrywerelifemembersJohnHailey,JohnHaskinsandofcourseourPresidentandlifememberRossBarrett.
GuestsweretreatedtoseveralveryfunnysetsbyourMCPaulMartell.MarkSullivan,ManagingDirector,ActewCorporationandNewsLimitedjournalistGlennMilnewerealsopartoftheevening’sline-upasguestspeakers.AndtocapthingsoffseventeenlongstandingmemberswerepresentedwithMembershipAnniversarycertificates.
2010 Industry DinnerForourfirstIndustryDinnerfor2010weweredelightedtoannouncethattheLeaderoftheFederalOppositiontheHonMr.TonyAbbottMPwouldbetheguestspeaker.ThedinnerheldintheFederationBallroomatHyattHotelCanberrawasanoutstandingsuccess.MrAbbott,inthelead-uptotheFederalElectionpickedourIndustryDinner,overmanyotheropportunities,tooutlinewhathewoulddeliverfortheconstructionindustryifelected.
Master Builders Annual Report | ACT 23
Master Builders Group Training apprentice & Cadet awardsTheApprenticeandCadetAwardsrecogniseandcelebratetheoutstandingachievementsoftheMasterBuildersApprenticesandCadets.
apprentice of the year - Gerard allen
Gerardhaswonanumberofawardsduringhisapprenticeship,includingthesilverawardatthe2008NationalWorldskillsandwasrecognisedasthestage1andstage2plumberoftheyearatthePlumbingawards.During2010GerardreceivedtheOutstandingplumberoftheyearawardatthe2010Plumbingawards,OutstandingapprenticeoftheyearattheGroupTrainingawardsandtheGoldawardatthe2010NationalWorldskillsCompetition.
Cadet of the year - Peter Jamieson
Peter’sdeterminationandabilityhasclearlybeendisplayedintheoutcomeshehasachievedwithhistraining.In2009hewontheACTTraineeoftheyearawardintheTrainingandEducationExcellenceawardsandrepresentedACTintheNationalawards.Hisdedicationtocompletingtheoffsitelearningassignmentswasseeninthequalityofhisworkwhichputhimatthetopofhisclass.PeterhascontinuedontotheBuildingManagementdegreeattheUniversityofCanberra.
President’s LuncheonsPresident’sLuncheonsareoneoftheMasterBuilderskeyactivitiesontheeventcalendar.TheluncheonsarehostedbythePresidentoftheMasterBuilders,RossBarrett,andincludeapresentationfromaprominentGuestofHonour.TheGuestsofHonourincludeleadingpoliticiansandexecutiveofficersofFederalandACTgovernmentdepartments.
TheLuncheonsprovideanintimateforumfortwentygueststodiscusstopicalindustryissues.TheyareansuperbwayforMemberstonetworkwithkeyindustrystakeholdersandtokeepuptodatewithcurrentactivitieswithintheACT’sbuildingandconstructionindustry.
Master Builders Annual Report | ACT 24
Master Builders association of the act & Controlled Entity
FINANCIALSTATEMENTS
FORTHEYEARENDED 30JUNE2010
Master Builders Annual Report | ACT 25
stateMent BY MeMBers of the COUNCIL OF MANAGEMENT
......................................................................................
President
......................................................................................
Treasurer
Datedthis6dayofSeptember2010
WeRBarrettandSButt,beingtwomembersoftheCouncilofManagementoftheMasterBuilders’AssociationoftheACT,dostateonbehalfoftheCouncilthatintheopinionoftheCouncil:
(1) ThefinancialstatementsandnotescomplywiththeAustralianAccountingStandards,mandatoryprofessionalreportingrequirementsandotherauthorativepronouncementsoftheAustralianAccountingStandardsBoard;
(2) ThefinancialstatementsandnotescomplywiththereportingguidelinesoftheIndustrialRegistrar;
(3) Thefinancialstatementsandnotesgiveatrueandfairviewofthefinancialperformance,financialpositionandcashflowsofthereportingunitforthefinancialyeartowhichtheyrelate;
(4) AtthedateofthisreporttherearereasonablegroundstobelievethattheMasterBuildersAssociationoftheACTwillbeabletopayitsdebtsasandwhentheyfalldue;and
(5) Duringthefinancialyeartowhichthefinancialreportrelatesandsincetheendofthatyear:
(i) MeetingsoftheCouncilwereheldinaccordancewiththerulesoftheorganisation;and
(ii) ThefinancialrecordsofthereportingunithavebeenkeptandmaintainedinaccordancewiththeRAOScheduleandtheRAORegulations;and
(iii) TheinformationsoughtinanyrequestofamemberoftheorganisationoraRegistrardulymadeundersection272oftheRAOSchedulehasbeenfurnishedtothememberortheRegistrar;and
(iv) TherehasbeencompliancewithanyorderforinspectionoffinancialrecordsmadebytheCommissionundersection273oftheRAOSchedule.
SignedinaccordancewitharesolutionoftheMembersoftheCouncilofManagementpassedon6September2010.
Master Builders Annual Report | ACT 26
Report on the Financial ReportWehaveauditedtheaccompanyingfinancialreportoftheMasterBuilders’AssociationoftheACTandcontrolledentity(theassociation)whichcomprisesthestatementoffinancialpositionasat30June2010andthestatementofcomprehensiveincome,statementofchangesinequityandstatementofcashflowsfortheyearendedonthatdate,asummaryofsignificantaccountingpoliciesandotherexplanatorynotesandthestatementbymembersoftheCouncilofManagement(theCouncil).
Council’s Responsibility for the Financial ReportThecounciloftheassociationisresponsibleforthepreparationandfairpresentationofthefinancialreportinaccordancewithAustralianAccountingStandards(includingtheAustralianAccountingInterpretations)andtheAssociationsIncorporationAct1991(ACT).Thisresponsibilityincludesdesigning,implementingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationofthefinancialreportthatisfreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.
auditor’s ResponsibilityOurresponsibilityistoexpressanopiniononthefinancialreportbasedonouraudit.WeconductedourauditinaccordancewithAustralianAuditingStandards.TheseAuditingStandardsrequirethatwecomplywithrelevantethicalrequirementsrelatingtoauditengagementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialreportisfreefrommaterialmisstatement.
Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialreport.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialreport,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialreportinordertodesignauditproceduresthatareappropriateinthecircumstances,
butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.AnauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebytheCouncil,aswellasevaluatingtheoverallpresentationofthefinancialreport.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.
IndependenceInconductingouraudit,wehavecompliedwiththeindependencerequirementsofAustralianprofessionalethicalpronouncements.
auditor’s Opinion Inouropinion:
ThefinancialreportoftheMasterBuilders’AssociationoftheACTandcontrolledentityisinaccordancewithAssociationsIncorporationsAct1991(ACT)andtheWorkplaceRelationsAct1996including:
i. givingatrueandfairviewoftheassociation’sfinancialpositionasat30June2010andofitsperformanceanditscashflowsfortheearendedonthatdate;and
ii. complyingwithAustralianAccountingStandards(includingAustralianAccountingInterpretations)andIncorporationsAct1991(ACT).
A.B.Papps,
WalterTurnbull,abusinessunitofPricewaterhouseCoopers,
44SydneyAvenue,
BartonACT2600
Datedthis 7dayofSeptember2010
indePendent audit rePort TO THE MEMBERS
Master Builders Annual Report | ACT 27
Consolidated Group Parent Entity
Note2010
$
2009
$
2010
$
2009
$
Revenue 2 9,060,654 11,450,567 3,142,052 5,907,188
Employee benefits expense (5,699,731) (5,763,607) (1,359,314) (1,314,805)
Depreciation and amortisation expense 3 (352,732) (194,630) (293,931) (128,657)
Rent expense (30,226) (121,615) (30,226) (121,615)
Meetings and seminars (13,467) (9,005) (13,062) (8,811)
Printing, postage and stationery expense (204,239) (155,445) (117,552) (101,847)
Subscriptions (137,880) (115,103) (130,912) (113,627)
Consultant expense (576,929) (577,298) (243,796) (232,622)
Motor vehicle expense (80,462) (96,237) (62,000) (71,861)
Donations and sponsorship (11,700) (9,500) (8,000) (7,000)
Building awards expense (336,260) (306,075) (336,260) (306,075)
Worker’s compensation expense (217,765) (325,296) (10,873) (12,391)
Operating lease expense 3 - (3,967) - -
Insurance expense (62,637) (62,092) (34,634) (33,571)
Other expenses (596,841) (705,166) (302,794) (423,978)
Profit from operations 739,785 3,005,531 198,698 3,030,328
Net loss on revaluation of non-current assets - (368,301) - (368,301)
Total comprehensive income for the year
739,785 2,637,230 198,698 2,662,027
Total comprehensive income attributable to members of the entity
739,785 2,637,230 198,698 2,662,027
stateMent of coMPrehensiVe incoMe FOR THE YEAR ENDED 30 JUNE 2010
Master Builders Annual Report | ACT 28
Consolidated Group Parent Entity
Note2010
$
2009
$
2010
$
2009
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents 6 2,758,376 2,062,287 1,270,124 1,291,279
Trade and other receivables 7 1,260,842 1,723,512 393,571 1,051,397
Inventories 8 2,052 2,233 2,052 2,233
Other financial assets 9 620,000 - 620,000 -
Other current assets 10 47,524 424,837 (33,002) 366,354
TOTAL CURRENT ASSETS 4,688,794 424,837 2,252,745 366,354
NON-CURRENT ASSETS
Trade and other receivables 7 8,958 8,958 8,958 8,958
Property, plant and equipment 11 8,540,289 8,723,126 8,376,128 8,525,116
Intangible Assets 12 50,459 59,361 50,459 59,361
Other non-current assets 10 4,545 4,545 4,545 4,545
TOTAL NON-CURRENT ASSETS 8,604,251 8,795,990 8,439,090 8,597,980
TOTAL ASSETS 13,293,045 13,008,859 10,692,835 11,309,243
CURRENT LIABILITIES
Trade and other payables 13 1,414,187 1,806,528 805,731 1,555,356
Short-term provisions 14 66,230 143,339 52,218 131,550
Other current liabilities 15 36,551 27,758 36,551 27,758
TOTAL CURRENT LIABILITIES 1,516,968 1,977,625 894,500 1,714,664
NON-CURRENT LIABILITIES
Long-term provisions 14 25,492 20,434 25,492 20,434
Other non-current liabilities 15 500,000 500,000 500,000 500,000
TOTAL NON-CURRENT LIABILITIES 525,492 520,434 525,492 520,434
TOTAL LIABILITIES 2,042,460 2,498,059 1,419,992 2,235,098
NET ASSETS 11,250,585 10,510,800 9,272,843 9,074,145
EQUITY
Retained earnings 10,728,977 9,989,192 8,751,235 8,552,537
Reserves 23 521,608 521,608 521,608 521,608
TOTAL EQUITY 11,250,585 10,510,800 9,272,843 9,074,145
stateMent of financial Position AS AT 30 JUNE 2010
Master Builders Annual Report | ACT 29
stateMent of chanGes in eQuitYFOR THE YEAR ENDED 30 JUNE 2010
Consolidated GroupRetained Earnings
$
Asset Revaluation Reserve
$
Total
$
Balance at 1 July 2008 5,522,209 889,909 6,412,118
Increase in equity due to consolidation
1,461,452 - 1,461,452
Profit attributable to members 3,005,531 - 3,005,531
Asset Revaluation - (368,301) (368,301)
Balance at 30 June 2009 9,989,192 521,608 10,510,800
Profit attributable to members 739,785 - 739,785
Asset revaluation - - -
Balance at 30 June 2010 10,728,977 521,608 11,250,585
Parent EntityRetained Earnings
$
Asset Revaluation Reserve
$
Total
$
Balance at 1 July 2008 5,522,209 889,909 6,412,118
Profit attributable to members 3,030,328 - 3,030,328
Asset revaluation - (368,301) (368,301)
Balance at 30 June 2009 8,552,537 521,608 9,074,145
Profit attributable to members 198,698 - 198,698
Asset revaluation - - -
Balance at 30 June 2010 8,751,235 521,608 9,272,843
Master Builders Annual Report | ACT 30
Consolidated Group Parent Entity
Note2010
$
2009
$
2010
$
2009
$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from ordinary activities 9,662,303 8,991,487 3,434,770 3,967,023
Interest received 55,143 125,030 33,029 98,153
Payments to employees and suppliers (8,868,754) (7,699,739) (3,356,846) (2,226,330)
Net cash provided by operating activities 16 848,692 1,416,778 110,953 1,838,846
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment
50,454 3,277,273 33,635 3,250,000
Purchase of property, plant and equipment (203,057) (5,408,770) (165,743) (5,293,107)
Net cash (used in) investing activities (152,603) (2,131,497) (132,108) (2,043,107)
Net increase/(decrease) in cash held 696,089 (714,719) (21,155) (204,261)
Cash and cash equivalents at beginning of financial year
2,062,287 1,495,540 1,291,279 1,495,540
Increase in cash and cash equivalents at beginning of financial year due to consolidation
- 1,281,466 - -
Cash and cash equivalents at end of financial year
6 2,758,376 2,062,287 1,270,124 1,291,279
stateMent of cash floWs FOR THE YEAR ENDED 30 JUNE 2010
Master Builders Annual Report | ACT 31
50 year MembersAndersonGA&SonPtyLtd
ModernPlasterPtyLtd
40 year MembersBoralCountryConcrete&Quarries
35YearMembers
AndersonHoldingsPtyLimited
AndrioloR&APtyLtd
ProjectCoordination(Australia)PtyLtd
30 year MembersCercolConstructionServicesPtyLtd
JohnHindmarsh(ACT)PtyLtd
25 year MembersBelconnenConcretePtyLtd
CSRGyprock
DouglasJoineryPtyLtd
ElvinGroupPtyLtd
Newham’sHardware
OnesteelReinforcingPtyLtd
T.OK.CarpentryAndPartitioning
20 year MembersAMurray&Sons(ACT)PtyLimited
ABAConstructionManagers
BALentferBuildingContractor
BoralRoofing
BrownConsulting(ACT)PtyLtd
CardnoYoung
CashmereCA&LJ
CBRichardEllisPtyLtd
ChapmanConstructionsCanberraPtyLtd
DSBLandscapeArchitects
Eastcliff
ErnSmithBuildingSupplies
FAWBuilding&RuralSupplies
HansonConstructionMaterials
HomelineBuilding&Design
HughesTrueman
JamesHardieAustraliaPtyLtd
Madison
ManteenaPtyLtd
May&RussellArchitectsPtyLtd
NHatzidoulis&Associates
O’ConnorHarris&Co
PremierHomes(ACT)PtyLtd
QProjects
RiderLevettBucknallPtyLtd
RobinsonBuildingGroupPtyLtd
SolidConstructionsPtyLtd
StGeorgeBankLimited
TheVillageBuildingCo.Limited
ThirlstonFloorCoverings
ViridianNewWorldGlass
WTPartnership
WalterPintoPtyLtd
WestRTilesPtyLtd
WodenContractorsPtyLtd
MEMBERSHIP ANNIVERSARIES
Master Builders Association of the ACT1 Iron Knob St, Fyshwick ACT 2609
PO Box 1211, Fyshwick ACT 2609Tel: (02) 6247 2099 Fax: (02) 6249 8374
Email: [email protected] Web: www.mba.org.au